LECG Corporation annonce les résultats de son premier trimestre fiscal 2004 et revoit ses prévisions à la hausse en ce qui concerne son chiffre d'affaires et son résultat net pour l'exercice 2004
Presse économique
EMERYVILLE, Calif.--(BUSINESS WIRE)--May 5, 2004—
Parmi ses récents investissements : l'acquisition de Low Rosen Taylor Soriano au Canada et le développement de ses activités en Europe.
LECG CORPORATION REPORTS 2004 FIRST QUARTER FINANCIAL RESULTS AND RAISES FISCAL YEAR 2004 REVENUE AND NET INCOME EXPECTATIONS
Recent Investments Include Acquisition of Low Rosen Taylor Soriano in Canada
and Expanded Operations in Europe
Emeryville, CA, May 5, 2004 - LECG Corporation (NASDAQ: XPRT), a global provider of expert services, today reported financial results for the first quarter ended March 31, 2004.
Revenues for the first quarter increased 11% to $43.1 million from $38.8 million for the first quarter of 2003. Revenues increased 16%, excluding performance based revenue of $315,000 in the first quarter of 2004 and $1,990,000 for the same period in 2003. EBITDA(1) was $6.2 million for the quarter, a 25% increase from $4.9 million in the first quarter of 2003.
Net income attributable to common shares increased 78% to $3.3 million, or $0.14 per diluted share, for the first quarter of 2004 compared to $1.8 million, or $0.12 per diluted share, for the same period in 2003. LECG was a limited liability company in the first quarter of 2003 and was not subject to corporate income taxes. Pro forma earnings per diluted share(2) were $0.11 for the first quarter of 2003. Income before taxes was $5.5 million, 92% higher than income before tax of $2.8 million in the first quarter of 2003. Included in the first quarter of 2004 was $447,000 in operating expenses incurred during the month of March in connection with opening three new offices in Europe.
LECG ended the first quarter with 752 employees and exclusive independent contractors, an increase of 17% from 643 as of December 31, 2003. Expert headcount increased to 235 from 197 as of December 31, and professional staff headcount increased to 357 from 298, for a combined increase of 97, predominantly in the month of March. Professional staff utilization for the first quarter of 2004 was 82%, unchanged from the same period in 2003.
“LECG's recruiting efforts paid-off during the first quarter of 2004,' said Dr. David Teece, LECG Chairman. “Not only have we added close to 100 professionals company-wide, but we have also opened three new offices in Europe. This quarter's professional headcount growth has laid the foundation for future growth in revenues and net income. Accordingly, I am optimistic about the potential to exceed our previous revenue and net income expectations for the fiscal year.'
Acquisitions and Expansion in the US, Canada and Europe
LECG is pleased to announce the acquisition of Low Rosen Taylor Soriano (LRTS), a privately held expert services firm based in Toronto, Canada. The acquisition was effective March 26, 2004 and therefore had no revenue impact on the quarter. Prominent experts joining LECG include Robert B. Low, Howard N. Rosen, Richard C. Taylor and Errol D. Soriano. In total, 17 LRTS employees joined the Toronto office, strengthening the Company's business valuation and litigation support practices both in Canada and internationally.
Effective March 1, 2004, LECG acquired substantially all of the assets of Economic Analysis LLC, a privately held expert services firm based in Los Angeles. Also in March, LECG opened offices in Brussels, Madrid and Paris with the announced additions of Dr. David S. Evans and Dr. A. Jorge Padilla.
Revised Fiscal Year Outlook
For the fiscal year 2004, the Company is raising its revenue expectations to reflect the acquisitions of Economic Analysis LLC and Low Rosen Taylor Soriano. Revenues are expected to be in the range of $205 to $215 million, compared to previous expectations of $195 to $205 million, based on 253 billing days for the year. This revised revenue expectation also reflects lower anticipated performance based revenue of $5.0 to $6.0 million for the year compared to previous expectations of $8.0 million. The Company expects net income will be in the range of $17.7 to $19.0 million, or $0.75 to $0.79 per diluted share, compared to earlier expectations of $17.0 to $18.0 million.
Conference Call Webcast Information
To listen to a live audio webcast of LECG's first quarter 2004 financial results conference call, visit the Company's website www.lecg.com. The conference call begins at 5:00 pm EDT today. A replay of the call will also be available on the Company's website until Friday, August 13, 2004.
About LECG
LECG is a global provider of expert services. LECG's highly credentialed experts and professional staff conduct economic and financial analyses to provide objective opinions and advice that help resolve complex disputes and inform legislative, judicial, regulatory and business decision makers. LECG provides independent expert testimony, original authoritative studies and strategic advice to its clients. LECG's experts are renowned academics, former senior government officials, experienced industry leaders and seasoned consultants.
Statements in this press release concerning the future business, operating and financial condition of the Company and statements using the terms “believes,' “expects,' “will,' “could,' “plans,' “anticipates,' “estimates,' “predicts,' “intends,' “potential,' “continue,' “should,' “may,' or the negative of these terms or similar expressions are “forward looking' statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon management's current expectations as of today, February 17, 2004. There may be events in the future that the Company is not able to accurately predict or control and they may cause actual results to differ materially from expectations. Information contained in these forward looking statements is inherently uncertain, and actual performance is subject to a number of risks, including but not limited to, among others, dependence on key personnel, acquisitions, risks inherent in international operations, management of professional staff, dependence on growth of the Company's service offerings, the ability of the Company to integrate successfully new experts into its practice, intense competition and potential professional liability. Further information on these and other potential risk factors that could affect the Company's financial results is included in the Company's filings with the Securities and Exchange Commission. The Company cannot guarantee any future results, levels of activity, performance or achievement. The Company undertakes no obligation to update any of its forward looking statements after the date of this press release.
LECG Corporation
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(dollars in thousands, except per share data)
| Quarter ended | ||
| March 31, | ||
| 2004 | 2003 | |
| Revenues | $43 110 | $38 800 |
| Cost of services: | ||
| Compensation and project costs | -28 497 | -26 212 |
| Equity-based compensation | 171 | -61 |
| Total cost of services | -28 326 | -26 273 |
| Gross profit | 14 784 | 12 527 |
| Operating expenses: | ||
| General and administrative expenses | -8 593 | -7 710 |
| Depreciation and amortization | -755 | -1 231 |
| Operating income | 5 436 | 3 586 |
| Interest income | 111 | 15 |
| Interest expense | -67 | -857 |
| Other income (expense), net | -27 | 95 |
| Income before income tax | 5 453 | 2 839 |
| Provision for income taxes | -2 202 | - |
| Net income | 3 251 | 2 839 |
| Accrued preferred dividends and accretion of preferred shares | - | -1 014 |
| Net income attributable to common shares | $3 251 | $1 825 |
| Net income per share: | ||
| Basic | $0,15 | $0,15 |
| Diluted | $0,14 | $0,12 |
| Weighted average share amounts: | ||
| Basic | 21 406 061 | 12 466 280 |
LECG Corporation
CONDENSED CONSOLIDATED
BALANCE SHEET
(dollars in thousands)
| March 31, | December 31, | |
| 2004 | 2003 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $36 065 | $67 177 |
| Accounts receivable, net of allowance of $537 and $482 | 51 773 | 46 708 |
| Prepaid expenses | 2 360 | 2 708 |
| Deferred taxes | 9 802 | 9 802 |
| Other | 7 109 | 3 868 |
| Total current assets | 107 109 | 130 263 |
| Property and equipment, net | 4 322 | 4 506 |
| Goodwill | 44 132 | 23 976 |
| Other intangible assets | 433 | 533 |
| Other assets | 11 270 | 3 864 |
| Total assets | $167 266 | $163 142 |
| Liabilities and shareholders’ equity | ||
| Liabilities | $39 490 | $39 155 |
| Shareholders' equity (21,744,232 and 21,693,156 common shares outstanding at March 31, 2004 and December 31, 2003, respectively) | 127 776 | 123 987 |
| Total liabilities and shareholders' equity | $167 266 | $163 142 |
LECG Corporation
CONDENSED CONSOLIDATED
STATEMENTS OF CASHFLOWS
(dollars in thousands, except per share data)
| For the quarter ended | ||
| March 31, | mars 31, | |
| 2004 | 2003 | |
| Cash flows from operating activities | ||
| Net income | $3 251 | $2 839 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Bad debt expense | 55 | - |
| Depreciation and amortization of property and equipment | 577 | 766 |
| Amortization of deferred lease credits and other intangibles | 178 | 375 |
| Equity-based compensation | -171 | 61 |
| Equity investment loss | 4 | - |
| Interest rate swap expense (income) | - | -132 |
| Amortization of transition adjustment | - | 23 |
| Changes in assets and liabilities: | ||
| Accounts receivable | -5 120 | -3 149 |
| Other current assets | -2 893 | -1 301 |
| Accounts payable and other accrued liabilities | -1 138 | -530 |
| Accrued compensation | 962 | -175 |
| Deferred revenue | 28 | -81 |
| Signing bonuses and other assets | -7 326 | 132 |
| Other liabilities | - | 24 |
| Net cash used in operating activities | -11 593 | -1 148 |
| Cash flows from investing activities | ||
| Business acquisitions | -19 156 | - |
| Purchase of property and equipment | -394 | -273 |
| Deposits | -85 | -64 |
| Net cash used in investing activities | -19 635 | -337 |
| Cash flows from financing activities | ||
| Borrowings under revolving credit facility | - | 11 000 |
| Repayments of long term debt | - | -800 |
| Repayments under revolving credit facility | - | -5 000 |
| Payment of loan fees | - | -746 |
| Exercise of options | 1 | - |
| Distributions to common shareholders | - | -1 095 |
| Net cash provided by financing activities | 1 | 3 359 |
| Effect of exchange rates on changes in cash | 115 | 39 |
| Increase (decrease) in cash and cash equivalents | -31 112 | 1 913 |
| Cash and cash equivalents, beginning of period | 67 177 | 2 576 |
| Cash and cash equivalents, end of period | $36 065 | $4 489 |
| Supplemental disclosure: | ||
| Cash paid for interest | $11 | $940 |
| Cash paid for income taxes | $74 | $11 |
EBITDA (1)
(dollars in thousands)
| Quarter ended | ||
| March 31, | ||
| 2004 | 2003 | |
| Net income attributable to common shares | $3 251 | $1 825 |
| Add back (subtract): | ||
| Accrued preferred dividends and accretion of preferred shares | - | 1 014 |
| Provision for income taxes | 2 202 | - |
| Interest, net | -44 | 842 |
| Depreciation and amortization | 755 | 1 231 |
| EBITDA | $6 164 | $4 912 |
(1) EBITDA is a non-GAAP financial measure defined by the Company as net income attributable to common shareholders before interest, taxes, depreciation and amortization and accrued preferred dividends and accretion. The Company believes that EBITDA is a useful measure of financial performance of the business and facilitates comparison of financial results for periods before and after its initial public offering and conversion to a taxable C corporation. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. This measure, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows or other measures of financial performance prepared in accordance with GAAP.
Pro forma earnings per share (2)
(dollars in thousands, except per share data)
| Quarter ended | ||
| March 31, | ||
| 2004 | 2003 | |
| Actual | Pro Forma | |
| Net income attributable to common shares | $3 251 | $1 825 |
| Accrued dividends and accretion of preferred stock | 1 014 | |
| Pro forma provision for income taxes (3) | -1 153 | |
| Pro forma net income | $1 686 | |
| Net income per share, as reported: | ||
| Basic | $0,15 | $0,15 |
| Diluted | $0,14 | $0,12 |
| Pro forma net income per share: | ||
| Basic | $0,14 | |
| Diluted | $0,11 | |
| Shares used in calculating net income per share, as reported: | ||
| Basic | 21 406 061 | 12 466 280 |
| Diluted | 23 345 878 | 14 992 622 |
| Shares used in calculating pro forma net income per share: | ||
| Basic | 12 466 280 | |
| Diluted | 14 992 622 |
(2) Pro forma adjusted net income and earnings per share are non-GAAP financial measure defined by the Company as net income attributable to common shareholders plus accrued preferred dividends and accretion of preferred units, less an income tax provision calculated at the estimated 2004 effective tax rate of 40.6%. The Company believes that pro forma adjusted net income and earnings per share are useful measures of the financial results of the business and facilitate comparison of periods before and after its initial public offering and conversion to a taxable C corporation. The shares used in calculating the pro forma adjusted earnings per share do not include the issuance of common shares necessary to redeem the preferred units. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. This measure, however, should be considered in addition to, and not as a substitute or superior to, net income, cash flows or other measures of financial performance prepared in accordance with GAAP.
(3) LECG was a limited liability company (“LLC') in the quarter ending March 31, 2003. Consequently, the provision for income taxes as calculated above is pro forma based on an effective tax rate of 40.6%.
Contacts
John C. Burke, Chief Financial Officer
Erin Glenn, Investor Relations
(510) 985-6990
investor@lecg.com
ESHEET : 4633984
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