Some News FROM another Staffing Service
WASHINGTON, D.C.--(BUSINESS WIRE)--February 25, 1998--Acsys, Inc. (Nasdaq/NM:ACSY), a leading provider
of specialty professional staffing services, primarily in the accounting and finance fields, today announced results for the fourth
quarter and year ended December 31, 1997.
Pro forma total service revenues for the fourth quarter of 1997 increased 17% to $16.2 million from $13.9 million for the
same quarter last year. There was a pro forma net loss for the quarter of $302,000, or $0.04 per share, compared with pro
forma net income of $632,000, or $0.07 per share, for the fourth quarter of 1996. During the fourth quarter of 1997 the
Company incurred a one-time, noncash charge of $512,000 for severance costs related to the restructuring of the employment
relationship with a former executive.
For the year ended December 31, 1997, pro forma total service revenues increased 20% to a record $62.7 million from
$52.4 million in 1996. Total service revenues for 1997 were comprised of temporary staffing service revenues and permanent
placement revenues which contributed 73% and 27%, respectively. Revenues for specialty professional services, Acsys's core
business, increased 20% in the fourth quarter to $15.1 million and 24% for the year to $58.3 million. Clerical service revenues
decreased 20% in the fourth quarter to $1.1 million and decreased 17% for the year to $4.5 million as the Company continued
to narrow its focus on specialty professional staffing. Pro forma net income was $2.1 million, or $0.25 per share, for 1997
compared with pro forma net income of $2.3 million, or $0.28 per share, for 1996.
Commenting on the results, Chief Executive Officer Timothy Mann, Jr. said, "We are pleased to report record revenues,
which reflect the strength of our core business. Operating expenses significantly increased in the fourth quarter due to
investments we made to fuel our 1998 growth, integrate our existing businesses and complete the infrastructure to operate as a
public company. We continue to pursue the acquisition of specialty professional staffing companies. Our focus in the acquisition
program remains on specialty professional staffing companies that have a leading position in new markets or that are
operationally and geographically synergistic with our existing business."
Acsys completed its initial public offering of 2,750,000 common shares on February 5, 1998, and the underwriters'
over-allotment option of 412,500 shares was exercised on February 23, 1998. Total proceeds to the Company of $22.5
million will be used to repay indebtedness, to fund acquisitions and for general corporate purposes.
Acsys, Inc. is one of the leading accounting and finance temporary staffing and permanent placement firms in the U.S. The
Company operates 16 offices serving the Atlanta, Charlotte, Central New Jersey, Philadelphia, Tampa, Orlando, and
Washington, D.C. metropolitan markets.
Information contained in this press release, other than historical information, should be considered forward-looking in nature
and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected.
Among the key factors that may have a direct bearing on the operating results, performance or financial condition are the
Company's ability to achieve and manage growth; the Company's ability to successfully identify suitable acquisition candidates,
complete acquisitions or integrate the acquired business into its operations; the Company's ability to attract and retain qualified
personnel; the Company's ability to develop new services; and other factors discussed in Acsys's filings with the Securities and
Exchange Commission.
ACSYS, INC.
Pro Forma(a) Financial Highlights
(in thousands, except per share amounts)
(Unaudited)
Fourth Quarter Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1997 1996
Service revenues:
Temporary staffing $ 11,844 $10,631 $45,797 $ 40,410
Permanent placement 4,322 3,236 16,935 12,001
Total service revenues 16,166 13,867 62,732 52,411
Direct cost of services 8,084 7,156 30,744 26,925
Gross profit 8,082 6,711 31,988 25,486
Selling, general & administrative
expense 7,653 5,203 25,780 18,868
Depreciation and amortization 247 200 816 899
Severance and franchise
termination costs 512 <254> 682 567
Operating income (330) 1,308 4,710 5,152
Interest expense 210 180 903 980
Income (loss) before income taxes (540) 1,128 3,807 4,172
Pro forma income taxes (benefit)(b) (238) 496 1,675 1,836
Pro forma net income (loss) $ (302) $ 632 $ 2,132 $ 2,336
Diluted earnings (loss) per share$(0.04) $ 0.07 $ 0.25 $ 0.28
Weighted average number of common
shares outstanding 8,493 8,493 8,576 8,493
(a) Pro forma financial information has been restated to give effect
to the Company's acquisition of C.P.A. Staffing as if it had
occurred on January 1, 1996, adjustments to officers and employee
compensation based on employment agreements, and the elimination
of combination expenses and redeemable shares.
(b)Reflects the provision of income taxes as if the Company was a
"C" Corporation as of January 1, 1996
ACSYS, INC.
Actual Condensed Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)
Fourth Quarter Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1997 1996
Service revenues:
Temporary staffing $ 11,844 $ 9,153 $41,781 $ 34,757
Permanent placement 4,322 2,955 16,394 11,152
Total service revenues 16,166 12,108 58,175 45,909
Direct cost of services 8,084 6,063 27,912 22,874
Gross profit 8,082 6,045 30,263 23,035
Selling, general & administrative
expenses 7,653 5,839 25,812 18,777
Combination expenses 75 <254> 1,797 <254>
Depreciation and amortization 247 141 663 661
Severance and franchise
termination costs 512 <254> 682 567
Operating income (405) 65 1,309 3,030
Interest expense 210 138 798 803
Income (loss) before income taxes (615) (73) 511 2,227
Pro forma income taxes (benefit)(a) (226) (32) 973 980
Pro forma net income (loss) $ (389) $ (41) $ (462) $ 1,247
Diluted earnings (loss)
per share(b) $(0.05) $(0.04) $ (0.18) $ 0.14
Weighted average number of common
shares outstanding<254> 8,371 7,152 7,620 7,152
(a)Reflects the provision of income taxes as if the Company was a
"C" Corporation as of January 1, 1996.
(b)EPS includes a charge for the accretion of the redeemable
shares of $932,174 and $223,780 for the year ended December
31, 1997 and 1996, respectively, and $0 and $223,780 for the
three months ended December 31, 1997 and 1996, respectively.
(c) Number of shares excludes 122,012 redeemable shares.
Balance Sheet
As of December 31,
1997 1996
Cash and cash equivalents $ 370 $ 1,178
Working capital 4,883 3,555
Total assets 29,275 15,855
Long-term liabilities 12,084 8,166
Shareholders' equity 9,304 3,313
--30--ss/ny*
CONTACT: Timothy Mann, Jr.
Chief Executive Officer
(770) 395-0014 x 127
KEYWORD: DISTRICT OF COLUMBIA
INDUSTRY KEYWORD: EARNINGS |
