o | Preliminary Proxy Statement | |
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o | Definitive Proxy Statement | |
þ | Definitive Additional Materials | |
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o | Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11. |
(1) | Title of each class of securities to which transaction applies: | ||
(2) | Aggregate number of securities to which transaction applies: | ||
(3) | Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): | ||
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(1) | Amount Previously Paid: | ||
(2) | Form, Schedule or Registration Statement No.: | ||
(3) | Filing Party: | ||
(4) | Date Filed: | ||
(Unaudited) | ||||||||
June 30, 2011 | December 31, 2010 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash |
$ | 647,000 | $ | 561,000 | ||||
Accounts receivable, net of allowances of $137,000 and
$136,000, respectively |
24,533,000 | 24,272,000 | ||||||
Prepaid expenses |
601,000 | 257,000 | ||||||
Deferred tax asset, current |
0 | 314,000 | ||||||
Income tax receivable |
859,000 | 1,348,000 | ||||||
Other current assets |
251,000 | 813,000 | ||||||
Total current assets |
26,891,000 | 27,565,000 | ||||||
Property and equipment, net of $3,611,000 and $3,290,000
in accumulated depreciation, respectively |
2,865,000 | 2,960,000 | ||||||
Goodwill |
16,959,000 | 16,959,000 | ||||||
Identifiable intangible assets, net of $3,094,000 and
$2,827,000 in accumulated amortization, respectively |
8,280,000 | 8,546,000 | ||||||
Loans and advances |
120,000 | 126,000 | ||||||
Other long-term assets |
481,000 | 516,000 | ||||||
Total long-term assets |
28,705,000 | 29,107,000 | ||||||
Total assets |
$ | 55,596,000 | $ | 56,672,000 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 8,890,000 | $ | 8,756,000 | ||||
Accrued salaries and wages |
402,000 | 1,165,000 | ||||||
Accrued expenses, other |
2,945,000 | 2,877,000 | ||||||
Deferred tax liabilities, current |
80,000 | 0 | ||||||
Current maturities of long-term debt and capital leases |
1,667,000 | 1,680,000 | ||||||
Other current liabilities |
646,000 | 773,000 | ||||||
Total current liabilities |
14,630,000 | 15,251,000 | ||||||
Line of credit |
0 | 2,749,000 | ||||||
Long-term debt and capital leases, net of current
maturities |
1,250,000 | 2,083,000 | ||||||
Deferred tax liability, long-term |
2,338,000 | 2,032,000 | ||||||
Other long-term liabilities |
426,000 | 544,000 | ||||||
Total long-term liabilities |
4,014,000 | 7,408,000 | ||||||
Stockholders equity: |
||||||||
Preferred stock, $.001 par value; 10,000,000 shares;
no shares issued or outstanding |
0 | 0 | ||||||
Common stock, $.001 par value; 100,000,000 shares
authorized; 33,191,561
and 32,687,522 shares issued, respectively; and
33,011,561 and 32,507,522 shares outstanding,
respectively |
33,000 | 33,000 | ||||||
Additional paid-in capital |
28,116,000 | 27,208,000 | ||||||
Treasury stock, at cost, 180,000 shares held |
(107,000 | ) | (107,000 | ) | ||||
Accumulated earnings |
8,910,000 | 6,879,000 | ||||||
Total stockholders equity |
36,952,000 | 34,013,000 | ||||||
Total liabilities and stockholders equity |
$ | 55,596,000 | $ | 56,672,000 | ||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2011 | June 30, 2010 | June 30, 2011 | June 30, 2010 | |||||||||||||
Revenues |
||||||||||||||||
Operating revenue |
$ | 44,094,000 | $ | 40,340,000 | $ | 85,602,000 | $ | 71,982,000 | ||||||||
Expenses |
||||||||||||||||
Direct expense |
36,914,000 | 33,101,000 | 71,215,000 | 59,144,000 | ||||||||||||
Gross margin |
7,180,000 | 7,239,000 | 14,387,000 | 12,838,000 | ||||||||||||
Selling, general and administrative expense |
5,537,000 | 4,598,000 | 10,744,000 | 8,673,000 | ||||||||||||
Operating income |
1,643,000 | 2,641,000 | 3,643,000 | 4,165,000 | ||||||||||||
Other expense |
33,000 | 34,000 | 62,000 | 54,000 | ||||||||||||
Interest expense |
47,000 | 88,000 | 96,000 | 108,000 | ||||||||||||
Income before income tax provision |
1,563,000 | 2,519,000 | 3,485,000 | 4,003,000 | ||||||||||||
Income tax provision |
649,000 | 1,015,000 | 1,454,000 | 1,665,000 | ||||||||||||
Net income |
$ | 914,000 | $ | 1,504,000 | $ | 2,031,000 | $ | 2,338,000 | ||||||||
Basic earnings per common share |
||||||||||||||||
Net income |
$ | 0.03 | $ | 0.05 | $ | 0.06 | $ | 0.07 | ||||||||
Diluted earnings per common share |
||||||||||||||||
Net income |
$ | 0.03 | $ | 0.05 | $ | 0.06 | $ | 0.07 | ||||||||
Weighted average common shares outstanding |
||||||||||||||||
Basic weighted average common shares
outstanding |
33,010,881 | 32,044,116 | 32,857,654 | 32,039,706 | ||||||||||||
Diluted weighted average common shares
outstanding |
34,333,656 | 32,645,399 | 34,211,517 | 32,602,367 |
Percent of | ||||||||||||||||||||||||
Three Months Ended June 30, | Quarter to Quarter Change | Business Unit Revenue | ||||||||||||||||||||||
2011 | 2010 | In Dollars | In Percentage | 2011 | 2010 | |||||||||||||||||||
Revenues |
||||||||||||||||||||||||
Express-1 |
$ | 23,060,000 | $ | 20,557,000 | $ | 2,503,000 | 12.2 | % | 52.2 | % | 51.0 | % | ||||||||||||
CGL |
15,722,000 | 16,074,000 | (352,000 | ) | -2.2 | % | 35.7 | % | 39.8 | % | ||||||||||||||
Bounce |
6,687,000 | 4,675,000 | 2,012,000 | 43.0 | % | 15.2 | % | 11.6 | % | |||||||||||||||
Intercompany eliminations |
(1,375,000 | ) | (966,000 | ) | (409,000 | ) | 42.3 | % | -3.1 | % | -2.4 | % | ||||||||||||
Total revenues |
44,094,000 | 40,340,000 | 3,754,000 | 9.3 | % | 100.0 | % | 100.0 | % | |||||||||||||||
Direct expenses |
||||||||||||||||||||||||
Express-1 |
18,573,000 | 15,720,000 | 2,853,000 | 18.1 | % | 80.5 | % | 76.5 | % | |||||||||||||||
CGL |
14,051,000 | 14,426,000 | (375,000 | ) | -2.6 | % | 89.4 | % | 89.7 | % | ||||||||||||||
Bounce |
5,665,000 | 3,921,000 | 1,744,000 | 44.5 | % | 84.7 | % | 83.9 | % | |||||||||||||||
Intercompany eliminations |
(1,375,000 | ) | (966,000 | ) | (409,000 | ) | 42.3 | % | 100.0 | % | 100.0 | % | ||||||||||||
Total direct expenses |
36,914,000 | 33,101,000 | 3,813,000 | 11.5 | % | 83.7 | % | 82.1 | % | |||||||||||||||
Gross margin |
||||||||||||||||||||||||
Express-1 |
4,487,000 | 4,837,000 | (350,000 | ) | -7.2 | % | 19.5 | % | 23.5 | % | ||||||||||||||
CGL |
1,671,000 | 1,648,000 | 23,000 | 1.4 | % | 10.6 | % | 10.3 | % | |||||||||||||||
Bounce |
1,022,000 | 754,000 | 268,000 | 35.5 | % | 15.3 | % | 16.1 | % | |||||||||||||||
Total gross margin |
7,180,000 | 7,239,000 | (59,000 | ) | -0.8 | % | 16.3 | % | 17.9 | % | ||||||||||||||
Selling, general & administrative |
||||||||||||||||||||||||
Express-1 |
2,473,000 | 2,355,000 | 118,000 | 5.0 | % | 10.7 | % | 11.5 | % | |||||||||||||||
CGL |
1,272,000 | 1,093,000 | 179,000 | 16.4 | % | 8.1 | % | 6.8 | % | |||||||||||||||
Bounce |
850,000 | 613,000 | 237,000 | 38.7 | % | 12.7 | % | 13.1 | % | |||||||||||||||
Corporate |
942,000 | 537,000 | 405,000 | 75.4 | % | 2.1 | % | 1.3 | % | |||||||||||||||
Total selling, general & administrative |
5,537,000 | 4,598,000 | 939,000 | 20.4 | % | 12.6 | % | 11.4 | % | |||||||||||||||
Operating income |
||||||||||||||||||||||||
Express-1 |
2,014,000 | 2,482,000 | (468,000 | ) | -18.9 | % | 8.7 | % | 12.1 | % | ||||||||||||||
CGL |
399,000 | 555,000 | (156,000 | ) | -28.1 | % | 2.5 | % | 3.5 | % | ||||||||||||||
Bounce |
172,000 | 141,000 | 31,000 | 22.0 | % | 2.6 | % | 3.0 | % | |||||||||||||||
Corporate |
(942,000 | ) | (537,000 | ) | (405,000 | ) | -75.4 | % | -2.1 | % | -1.3 | % | ||||||||||||
Operating income |
1,643,000 | 2,641,000 | (998,000 | ) | -37.8 | % | 3.7 | % | 6.5 | % | ||||||||||||||
Interest expense |
47,000 | 88,000 | (41,000 | ) | -46.6 | % | 0.1 | % | 0.2 | % | ||||||||||||||
Other expense |
33,000 | 34,000 | (1,000 | ) | -2.9 | % | 0.1 | % | 0.1 | % | ||||||||||||||
Income before tax |
1,563,000 | 2,519,000 | (956,000 | ) | -38.0 | % | 3.5 | % | 6.2 | % | ||||||||||||||
Tax provision |
649,000 | 1,015,000 | (366,000 | ) | -36.1 | % | 1.5 | % | 2.5 | % | ||||||||||||||
Net income |
$ | 914,000 | $ | 1,504,000 | $ | (590,000 | ) | -39.2 | % | 2.0 | % | 3.7 | % | |||||||||||
Percent of | ||||||||||||||||||||||||
Six Months Ended June 30, | Year to Year Change | Business Unit Revenue | ||||||||||||||||||||||
2011 | 2010 | In Dollars | In Percentage | 2011 | 2010 | |||||||||||||||||||
Revenues |
||||||||||||||||||||||||
Express-1 |
$ | 43,802,000 | $ | 36,769,000 | $ | 7,033,000 | 19.1 | % | 51.1 | % | 51.1 | % | ||||||||||||
CGL |
31,461,000 | 29,012,000 | 2,449,000 | 8.4 | % | 36.8 | % | 40.3 | % | |||||||||||||||
Bounce |
12,670,000 | 7,798,000 | 4,872,000 | 62.5 | % | 14.8 | % | 10.8 | % | |||||||||||||||
Intercompany eliminations |
(2,331,000 | ) | (1,597,000 | ) | (734,000 | ) | 46.0 | % | -2.7 | % | -2.2 | % | ||||||||||||
Total revenues |
85,602,000 | 71,982,000 | 13,620,000 | 18.9 | % | 100.0 | % | 100.0 | % | |||||||||||||||
Direct expenses |
||||||||||||||||||||||||
Express-1 |
34,762,000 | 28,262,000 | 6,500,000 | 23.0 | % | 79.4 | % | 76.9 | % | |||||||||||||||
CGL |
28,064,000 | 25,954,000 | 2,110,000 | 8.1 | % | 89.2 | % | 89.5 | % | |||||||||||||||
Bounce |
10,720,000 | 6,525,000 | 4,195,000 | 64.3 | % | 84.6 | % | 83.7 | % | |||||||||||||||
Intercompany eliminations |
(2,331,000 | ) | (1,597,000 | ) | (734,000 | ) | 46.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
Total Direct expenses |
71,215,000 | 59,144,000 | 12,071,000 | 20.4 | % | 83.2 | % | 82.2 | % | |||||||||||||||
Gross margin |
||||||||||||||||||||||||
Express-1 |
9,040,000 | 8,507,000 | 533,000 | 6.3 | % | 20.6 | % | 23.1 | % | |||||||||||||||
CGL |
3,397,000 | 3,058,000 | 339,000 | 11.1 | % | 10.8 | % | 10.5 | % | |||||||||||||||
Bounce |
1,950,000 | 1,273,000 | 677,000 | 53.2 | % | 15.4 | % | 16.3 | % | |||||||||||||||
Total gross margin |
14,387,000 | 12,838,000 | 1,549,000 | 12.1 | % | 16.8 | % | 17.8 | % | |||||||||||||||
Selling, general & administrative |
||||||||||||||||||||||||
Express-1 |
5,125,000 | 4,376,000 | 749,000 | 17.1 | % | 11.7 | % | 11.9 | % | |||||||||||||||
CGL |
2,526,000 | 2,247,000 | 279,000 | 12.4 | % | 8.0 | % | 7.7 | % | |||||||||||||||
Bounce |
1,640,000 | 1,035,000 | 605,000 | 58.5 | % | 12.9 | % | 13.3 | % | |||||||||||||||
Corporate |
1,453,000 | 1,015,000 | 438,000 | 43.2 | % | 1.7 | % | 1.4 | % | |||||||||||||||
Total selling, general & administrative |
10,744,000 | 8,673,000 | 2,071,000 | 23.9 | % | 12.6 | % | 12.0 | % | |||||||||||||||
Operating income |
||||||||||||||||||||||||
Express-1 |
3,915,000 | 4,131,000 | (216,000 | ) | -5.2 | % | 8.9 | % | 11.2 | % | ||||||||||||||
CGL |
871,000 | 811,000 | 60,000 | 7.4 | % | 2.8 | % | 2.8 | % | |||||||||||||||
Bounce |
310,000 | 238,000 | 72,000 | 30.3 | % | 2.4 | % | 3.1 | % | |||||||||||||||
Corporate |
(1,453,000 | ) | (1,015,000 | ) | (438,000 | ) | -43.2 | % | -1.7 | % | -1.4 | % | ||||||||||||
Operating income |
3,643,000 | 4,165,000 | (522,000 | ) | -12.5 | % | 4.2 | % | 5.8 | % | ||||||||||||||
Interest expense |
96,000 | 108,000 | (12,000 | ) | -11.1 | % | 0.1 | % | 0.2 | % | ||||||||||||||
Other expense |
62,000 | 54,000 | 8,000 | 14.8 | % | 0.1 | % | 0.1 | % | |||||||||||||||
Income before tax |
3,485,000 | 4,003,000 | (518,000 | ) | -12.9 | % | 4.0 | % | 5.5 | % | ||||||||||||||
Tax provision |
1,454,000 | 1,665,000 | (211,000 | ) | -12.7 | % | 1.7 | % | 2.3 | % | ||||||||||||||
Net income |
$ | 2,031,000 | $ | 2,338,000 | $ | (307,000 | ) | -13.1 | % | 2.3 | % | 3.2 | % | |||||||||||