SOURCE: Analysts International

May 04, 2006 08:06 ET

Analysts International Reports Results for First Quarter 2006

Quarter's EPS Are at the High End of Recent Guidelines

MINNEAPOLIS, MN -- (MARKET WIRE) -- May 4, 2006 -- Analysts International (NASDAQ: ANLY) reported the results for its quarter ended April 1, 2006. Revenues totaled $86.8 million for the quarter, compared to $79.1 million for the comparable quarter a year ago and $85.9 million for the fourth quarter. For the quarter, the Company reported $254,000 of net income, or $.01 per diluted share, compared to a net loss of $706,000 or $(.03) per share, for the first quarter of 2005. The quarter's results are at the high end of the Company's guidance with respect to earnings per share.

Analysts will host a conference call today at 9:30 a.m. (CDT) to discuss these results in detail and answer questions participants may have. Interested parties may access the call by dialing 1-877-241-6895 or 1-973-339-3086 for international participants a few minutes before the scheduled start and ask for the Analysts International conference call moderated by Company President and CEO, Jeff Baker. The call may also be accessed via the internet at www.analysts.com, where it will be archived. Interested parties can also hear a replay of the call from 11:30 p.m. CT on May 4, 2006 until 10:59 p.m. on May 18, 2006, by calling 1-877-519-4471 and using access code 7298981. The Company will also file an 8-K with the Securities and Exchange Commission that will provide a full transcript of the call.

About Analysts International

Headquartered in Minneapolis, Analysts International is a diversified IT services company. In business since 1966, the company has sales and customer support offices in the United States and Canada. Lines of business include Full Service Staffing, which provides high demand resources for supporting a client's IT staffing needs; Solutions Services, which provides business solutions and network infrastructure services; Managed IT Services and Government Solutions. The company partners with best-in-class IT organizations, allowing access to a wide range of expertise, resources and expansive geographical reach. For more information, visit www.analysts.com.

                    Analysts International Corporation
                  Consolidated Statements of Operations
                                (unaudited)

                                                   Three Months Ended
                                               ---------------------------
(in thousands except per share amounts)            April 1,       April 2,
                                                     2006           2005

Professional services revenue:

  Provided directly                            $      65,459 $      66,050
  Provided through subsuppliers                       14,077         7,597
  Product sales                                        7,305         5,452
                                               ------------- -------------
    Total revenue                                     86,841        79,099

Expenses:
  Salaries, contracted services and direct
   charges                                            65,196        59,067
  Cost of product sales                                6,444         5,107
  Selling, administrative and other operating
   costs                                              14,492        15,454
  Amortization of intangible assets                      253           193
                                               ------------- -------------

Operating income (loss)                                  456          (722)

Non-operating income                                       4            21
Interest expense                                        (193)           (5)
                                               ------------- -------------

Income (loss) before income taxes                        267          (706)

Income tax expense                                        13            --
                                               ------------- -------------

Net income (loss)                              $         254 $        (706)
                                               ============= =============

Per common share:

Basic income (loss)                            $         .01 $        (.03)
                                               ------------- -------------

Diluted income (loss)                          $         .01 $        (.03)
                                               ------------- -------------

Average common shares outstanding                     24,611        24,316
Average common and common equivalent shares
 outstanding                                          25,086        24,316



                    Analysts International Corporation
                        Consolidated Balance Sheets


(in thousands)                                April 1,     December 31,
                                                2006           2005
Assets                                       (unaudited)

Current assets:
  Cash and cash equivalents                   $     137     $      64
  Accounts receivable, less allowance for
   doubtful accounts                             70,327        66,968
  Other current assets                            3,179         2,383
                                              ---------     ---------
    Total current assets                         73,643        69,415

Property and equipment, net                       3,771         4,056
Other assets                                     28,138        28,533
                                              ---------     ---------
                                              $ 105,552     $ 102,004
                                              ---------     ---------

Liabilities and Shareholders' Equity

Current liabilities
  Accounts payable                            $  26,331     $  24,581
  Salaries and vacations                          5,133         8,260
  Line of credit                                 10,492         5,000
  Deferred revenue                                1,464         1,645
  Restructuring accrual, current portion            875           971
  Self-insured health care reserves and other
   amounts                                        2,159         2,776
                                              ---------     ---------
    Total current liabilities                    46,454        43,233

Non-current liabilities, primarily deferred
 compensation                                     1,996         1,878
Restructuring accrual - non-current                 408           581
Shareholders' equity                             56,694        56,312
                                              ---------     ---------
                                              $ 105,552     $ 102,004
                                              ---------     ---------




                   Analysts International Corporation
              Reconciliation of non-GAAP Financial Measures
                              (in thousands)

                                                           Three Months
                                                              Ended
                                                      --------------------
                                                       April 1,    April 2,
                                                         2006        2005

Net income (loss) as reported                          $   254     $ (706)

Depreciation                                               608        693
Amortization                                               253        193
Net interest expense (income)                              189        (16)
Income tax expense                                          13         --
                                                       -------     ------

Adjusted EBITDA*                                       $ 1,317     $  164
                                                       -------     ------


* To supplement our consolidated financial statements presented in
  accordance with GAAP, we use the non-GAAP financial measure of Adjusted
  EBITDA (earnings before interest, taxes, depreciation and amortization)
  which are adjusted from results based on GAAP to exclude certain items.
  This non-GAAP financial measure is provided to enhance the user's overall
  understanding of our current financial performance and our prospects for
  the future.  This measure should be considered in addition to results
  prepared in accordance with GAAP, but should not be considered a
  substitute for or superior to GAAP results.  The non-GAAP financial
  measure included in this press release has been reconciled to the nearest
  GAAP measure.

Contact Information

  • Media Contacts:
    Jeff Baker
    President and CEO
    Analysts International
    Phone: 952-835-5900
    Email Contact

    Bill Bartkowski
    Partner
    MeritViewPartners
    Phone: 612-605-8616
    Email Contact