GTSI Reports Fourth Quarter Results
HERNDON, Va.--(BUSINESS WIRE)-- GTSI Corp. (GTSI) (NASDAQ: GTSI), a systems integration, solutions and services provider to federal, state and local governments, today announced its financial results for the three months and twelve months ended December 31, 2011.
For the fourth quarter of 2011, GTSI reported revenue of $109.3 million compared to $192.5 million for the fourth quarter of 2010, a revenue decline of 43.2%. Gross margin for the fourth quarter of 2011 decreased to $17.9 million from $19.6 million, a reduction of 8.6% from the same period in 2010. Gross Margin percent for the fourth quarter was 16.4% compared to 10.2% for the same quarter last year. Operating expenses declined $6.0 million, or 25.7%, to $17.2 million compared to $23.2 million for the fourth quarter of 2010. The resulting income from Operations of $0.7 million is a $4.3 million improvement from the $3.6 million loss from operations reported for the fourth quarter of 2010. Equity earnings from GTSIs investment in Eyak Technology LLC (EyakTek) declined $1.9 million as a result of the sale of our equity interest during the third quarter. The net income for the fourth quarter of 2011 was $0.4 million, compared to net loss of $1.0 million for the same period in 2010. Earnings per share improved $0.15 per share, or 136.4%, compared to $.11 loss per share from the same quarter last year.
For the twelve months ended December 31, 2011, GTSI reported revenue of $356.7 million compared to $666.7 million for the same period in 2010, a decline of 46.5%. Gross margin for the twelve months ended December 31, 2011 decreased $17.9 million to $62.4 million, or 22.4%, when compared to full year results for 2010. Gross Margin percent for 2011 is 17.5% compared to 12.1% for 2010. Operating expenses declined $16.8 million, or 19.1%, to $70.9 million. The loss from Operations increased for the twelve months ended December 31, 2011 by $1.2 million compared to 2010. Equity earnings from our EyakTek investment increased $2.4 million including the gain on the sale of our ownership interest of $7.3 million. Net income for 2011 was $0.5 million compared to net loss of $0.9 million for 2010. Earnings per share for 2011 was $.05, which was a 154.0% increase compared to the loss per share of $.10 in 2010.
GTSI ended the quarter with $54.9 million in cash on hand. The Company had no long-term debt and no borrowings under its credit facility. As of December 31, 2011, GTSI had stockholders equity of $97.0 million or $10.02 per diluted share.
An investor conference call to discuss fourth quarter results is scheduled for 11:00 a.m. Eastern Time March 29, 2012. Interested parties are invited to participate by calling 800-593-9034 or 334-323-7224, pass code is GTSI. In addition, you may access the webcast on GTSIs Investor Relations page (www.gtsi.com/ir). Webcast will be available for replay through May 28, 2012. To listen to the live call on the Internet, go to the web site at least 15 minutes early to register, download and install any necessary audio software. A replay will be available following the conclusion of the call until 6:00 p.m. eastern, May 28, 2012. To access the replay, please dial 877-919-4059 or 334-323-7226, pass code 39488942.
About GTSI Corp.
GTSI (NASDAQ: GTSI) is a leading provider of technology solutions and professional services to federal, state and local governments. Founded in 1983, the company has helped meet the unique IT needs of more than 1,700 governmental agencies nationwide. GTSI professionals draw on their deep knowledge, strategic partnerships, customer service and more than 740 industry certifications to guide agencies in selecting the most cost-effective technology available. GTSI has extensive capabilities and past performance in software development, data center, networking, collaboration, security and cloud computing solutions. In addition, GTSI's advanced engineering, integration, support and financial services - and broad portfolio of contracts - ease the planning, purchasing and deployment of solutions, and facilitates the management of mission-critical IT throughout the lifecycle. Headquartered in Herndon, Va., GTSI has approximately 450 employees. For more information visit the company's website at www.gtsi.com.
Forward Looking Statements
Except for historical information, all of the statements, expectations, beliefs and assumptions contained in the foregoing are "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995) that involve a number of risks and uncertainties. It is possible that the assumptions made by management, including, but not limited to, those relating to sales, margins, operating results and net income, and the effect of new contracts and lender agreements, as well as new vendor relationships may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. In addition to the above factors, other important factors that could cause actual results to differ materially are discussed in the Companys most recent annual report on Form 10K and included from time to time in other documents filed by the Company with the Securities and Exchange Commission.
GTSI and GTSI.com are registered trademarks of GTSI Corp. in the U.S. and other countries. All trade names are the property of their respective owners.
|GTSI Corp. Unaudited Condensed Consolidated Statements of Operations|
|(In thousands, except per share data)|
|Three Months Ended||Twelve Months Ended|
|December 31,||December 31,|
|COST OF SALES|
|SELLING, GENERAL & ADMINISTRATIVE EXPENSES||17,224||23,184||70,875||87,636|
|(LOSS) INCOME FROM OPERATIONS||676||(3,600||)||(8,511||)||(7,296||)|
|INTEREST AND OTHER INCOME, NET|
|Interest and other income||36||32||129||163|
Equity income from EyakTek, including gain on sale
|Interest and other income, net||(106||)||1,822||9,861||7,466|
|INCOME BEFORE INCOME TAXES||570||(1,778||)||1,350||170|
|INCOME TAX EXPENSE (BENEFIT)||203||(738||)||844||1,100|
|NET INCOME (LOSS)||$||367||$||(1,040||)||$||506||$||(930||)|
|EARNINGS (LOSS) PER SHARE|
|WEIGHTED AVERAGE SHARES OUTSTANDING|
|GTSI Corp. Unaudited Condensed Consolidated Balance Sheets|
|Cash and cash equivalents||$||54,872||$||4,049|
|Accounts receivable, net||76,014||154,891|
|Other current assets||1,645||2,462|
|Total current assets||142,741||182,101|
|Depreciable assets, net||4,482||7,452|
|Long-term receivables and other assets||3,126||14,291|
|Other intangible assets, net||4,076||-|
|LIABILITIES AND STOCKHOLDERS EQUITY|
|Accounts payable - floor plan||14,049||35,172|
Total current liabilities
|Total stockholders equity||96,958||96,210|
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY||$||163,840||$||203,844|
Senior Vice President & Chief Financial Officer
Source: GTSI Corp.Copyright Business Wire 2012