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For Immediate Release |
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2004 |
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20KB total |
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#451794 |
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www.fcg.com
For more information contact:
Luther Nussbaum
Chairman and
Chief Executive Officer
First Consulting Group
562-624-5221
lnussbaum@fcg.com
FOR IMMEDIATE RELEASE
Chuck McBride
Chief Financial Officer
First Consulting Group
562-624-5300
cmcbride@fcg.com
Thomas Reep
VP Investor Relations
First Consulting Group
562-624-5250
treep@fcg.com
FIRST CONSULTING GROUP (FCG) REPORTS
FOURTH QUARTER AND FISCAL 2003 RESULTS
Reports Fourth Quarter Net Revenues $64.8 Million and
Non-GAAP Fourth Quarter Pretax Profitability of $1.2 Million
GAAP Loss of $7.0 Million
Record 38 DSOs, Cash Balance at $63 Million
Long Beach, Calif., (February 19, 2004) FCG (NASDAQ: FCGI), a leading provider of outsourcing, consulting and systems integration to the health-related industries, today reported financial results for the fourth quarter and fiscal year ended December 26, 2003.
Fourth Quarter Performance
Revenue before out-of-pocket reimbursements (net revenue) for the fourth quarter of 2003 was $64.8 million, down 6.0 percent from $68.9 million in the fourth quarter of 2002.
FCG reported a net loss on a GAAP basis of $7.0 million, or $0.27 per share, for the fourth quarter of 2003, compared to $1.9 million profit, or $0.08 per share, in the fourth quarter of 2002. Included in the fourth quarter 2003 loss were pre-tax restructuring charges of $3.6 million
111 W. Ocean Blvd., Suite 1000, Long Beach, California, 90802 Telephone 562.624.5200 Facsimile 562.432.5774
and a non-cash tax valuation allowance of $5.5 million taken against current year net operating losses.
Excluding the restructuring and tax valuation charges, the Company earned a non-GAAP pretax profit of $1.2 million.
Fiscal 2003 Performance
For the full year, revenues were $272.1 million, up 1.5 percent from $268.0 million in 2002. For fiscal 2003, the Company reported a net loss of $17.0 million, or $0.68 per share, compared to a net income of $2.0 million, or $0.08 per share in fiscal 2002. Included in the 2003 fiscal year loss was $11.7 million in pretax restructuring charges, $2.6 million in expense from the cumulative effect of change in accounting principle from the Companys adoption of EITF 00-21, and $5.5 million of a non-cash tax valuation allowance.
Cash Position
Total cash and investments increased to $62.6 million at the end of 2003, as compared to $58.5 million in the third quarter of 2003. Days sales outstanding decreased to a record low 38 days in the fourth quarter of 2003, compared to 43 days in the third quarter of 2003. FCG has no long-term debt.
Our fourth quarter exceeded the expectations we stated in our third quarter call and earnings release. We indicated we would approach pretax profitability excluding restructuring charges in the fourth quarter. By earning more than $1.2 million we have demonstrated that our recovery is ahead of schedule, said Luther Nussbaum, chairman and chief executive officer of FCG. Most of last year was difficult as we transitioned the firm, incurring large restructuring charges as a result. However, we are now on track to achieve profitability in the first half of 2004 and are building a solid foundation for the second half of 2004 and beyond. We reduced G&A expenses in the fourth quarter to 21 percent and are well on our way to achieving our G&A target of 20% for Q1 and 18% for Q4.
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