Exhibit 99.1
GTSI Provides Updated First Quarter Financial Results
CHANTILLY, VA. — May 10, 2006 — GTSIÒ Corp. (Nasdaq: GTSI), today announced that in completing its Form 10-Q, for the three-month period ended March 31, 2006, GTSI discovered that its May 9, 2006 announcement of financial results understated unaudited sales by $6.1 million, and as a result under reported income by $871,000 or $0.07 a share. As reflected in the attached unaudited income statement, GTSI had sales of $149.8 million, a net loss of $13.0 million and net loss per share of $1.41 for the three-month period ended March 31, 2006.
About GTSI Corp.
GTSI Corp. is a leading information technology product and solutions provider, combining best of breed products and services to produce solutions that meet government’s evolving needs. For more than two decades, GTSI has focused exclusively on Federal, State, and Local government customers worldwide, offering a broad range of products and services, an extensive contract portfolio, flexible financing options, global integration and worldwide distribution. GTSI’s Lines of Business incorporate certified experts and deliver exceptional solutions to support government’s critical transformation efforts. Additionally, GTSI focuses on systems integrators on behalf of government programs. GTSI is headquartered in Northern Virginia, outside of Washington, D.C. Further information about the Company is available at www.GTSI.com/About.
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 revenue, 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 those listed in the Company’s most recent report on Form 10—K 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 Contact:
Paul Liberty
Area Vice President, Corporate Affairs & Investor Relations
703.502.2540
paul.liberty@gtsi.com
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GTSI Corp.
Consolidated Statements of Operations
(in thousands, except per share data)
| | Three Months Ended | | | | | |
| | March 31, | | Change from 2005 | |
| | 2006 | | 2005 | | Actual | | Percentage | |
| | | | | | | | | |
Sales | | $ | 149,844 | | $ | 160,677 | | $ | (10,833 | ) | -6.7% | |
Cost of sales | | 133,791 | | 142,204 | | 8,413 | | 5.9% | |
Gross margin | | 16,053 | | 18,473 | | (2,420 | ) | -13.1% | |
| | | | | | | | | |
Selling, general & administrative expenses | | 29,719 | | 28,291 | | (1,428 | ) | -5.0% | |
| | | | | | | | | |
Interest and other income, net | | 623 | | 729 | | (106 | ) | -14.5% | |
Loss before income taxes | | (13,043 | ) | (9,089 | ) | (3,954 | ) | -43.5% | |
| | | | | | | | | |
Income tax benefit | | — | | 3,563 | | (3,563 | ) | -100.0% | |
Net loss | | $ | (13,043 | ) | $ | (5,526 | ) | $ | (7,517 | ) | -136.0% | |
| | | | | | | | | |
Basic net loss per share | | $ | (1.41 | ) | $ | (0.61 | ) | $ | (0.79 | ) | -129.3% | |
Diluted net loss per share | | $ | (1.41 | ) | $ | (0.61 | ) | $ | (0.79 | ) | -129.3% | |
| | | | | | | | | |
Weighted average shares outstanding: | | | | | | | | | |
Basic | | 9,265 | | 9,002 | | 263 | | 2.9% | |
Diluted | | 9,265 | | 9,002 | | 263 | | 2.9% | |
GTSI Corp.
Condensed Consolidated Balance Sheets
(in thousands)
| | March 31, | | December 31, | | Change from December 31, 2005 | |
| | 2006 | | 2005 | | Actual | | Percentage | |
ASSETS | | | | | | | | | |
Current assets: | | | | | | | | | |
Cash | | $ | 2,502 | | $ | 22 | | $ | 2,480 | | 11272.7% | |
Accounts receivable, net | | 134,244 | | 207,886 | | (73,642 | ) | -35.4% | |
Inventory | | 26,923 | | 56,666 | | (29,743 | ) | -52.5% | |
Other current assets | | 20,971 | | 24,027 | | (3,056 | ) | -12.7% | |
Total current assets | | 184,640 | | 288,601 | | (103,961 | ) | -36.0% | |
Depreciable assets, net | | 13,153 | | 13,640 | | (487 | ) | -3.6% | |
Other assets | | 3,302 | | 4,416 | | (1,114 | ) | -25.2% | |
| | | | | | | | | |
TOTAL ASSETS | | $ | 201,095 | | $ | 306,657 | | $ | (105,562 | ) | -34.4% | |
| | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | |
Current liabilities: | | | | | | | | | |
Borrowings under credit agreement | | $ | — | | $ | 48,014 | | $ | (48,014 | ) | 0.0% | |
Accounts payable | | 111,878 | | 159,038 | | (47,160 | ) | -29.7% | |
Accrued liabilities | | 18,586 | | 17,463 | | 1,123 | | 6.4% | |
Deferred revenue | | 4,720 | | 3,611 | | 1,109 | | 30.7% | |
Total current liabilities | | 135,184 | | 228,126 | | (92,942 | ) | -40.7% | |
Other liabilities | | 3,747 | | 3,837 | | (90 | ) | -2.3% | |
Total liabilities | | 138,931 | | 231,963 | | (93,032 | ) | -40.1% | |
Stockholders’ equity | | 62,164 | | 74,694 | | (12,530 | ) | -16.8% | |
| | | | | | | | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 201,095 | | $ | 306,657 | | $ | (105,562 | ) | -34.4% | |
GTSI Corp.
| | Sales
($ in Millions) | | Month-End
Total Backlog
($ in Millions) | | Monthly Bookings
($ in Millions) | |
October 2003 | | 113.0 | | 192.9 | | 77.6 | |
November 2003 | | 93.2 | | 144.0 | | 44.3 | |
December 2003 | | 106.3 | | 102.8 | | 65.1 | |
January 2004 | | 58.4 | | 89.6 | | 45.2 | |
February 2004 | | 52.3 | | 83.1 | | 45.8 | |
March 2004 | | 67.9 | | 98.0 | | 82.8 | |
April 2004 | | 73.8 | | 123.0 | | 98.8 | |
May 2004 | | 72.2 | | 132.9 | | 82.1 | |
June 2004 | | 93.0 | | 155.0 | | 115.1 | |
July 2004 | | 89.5 | | 173.0 | | 107.5 | |
August 2004 | | 84.9 | | 192.8 | | 104.7 | |
September 2004 | | 156.2 | | 257.0 | | 220.4 | |
October 2004 | | 107.7 | | 207.8 | | 58.5 | |
November 2004 | | 93.2 | | 152.7 | | 38.1 | |
December 2004 | | 127.0 | | 86.8 | | 61.1 | |
January 2005 | | 54.8 | | 83.1 | | 51.1 | |
February 2005 | | 43.0 | | 95.5 | | 55.4 | |
March 2005 | | 62.9 | | 106.8 | | 74.1 | |
April 2005 | | 33.9 | | 123.9 | | 51.0 | |
May 2005 | | 40.8 | | 136.0 | | 52.9 | |
June 2005 | | 101.8 | | 113.6 | | 79.4 | |
July 2005 | | 36.9 | | 156.1 | | 79.4 | |
August 2005 | | 78.1 | | 198.4 | | 120.5 | |
September 2005 | | 154.8 | | 293.6 | | 250.0 | |
October 2005 | | 97.9 | | 235.3 | | 39.7 | |
November 2005 | | 80.0 | | 176.3 | | 21.0 | |
December 2005 | | 101.3 | | 127.3 | | 52.3 | |
January 2006 | | 47.1 | | 117.1 | | 37.0 | |
February 2006 | | 43.8 | | 111.9 | | 38.6 | |
March 2006 | | 52.8 | | 131.9 | | 78.9 | |
Sales data are based on the GAAP definition of sales. The Company often enters into sales arrangements, with customers, such as in certain third-party maintenance contracts, where the Company performs as an agent or broker without assuming the risks and rewards of ownership of the goods and services. The Company recognizes revenue from these transactions on a net basis.
Backlog and Bookings data are based on funds expected to be received associated with accepted customer orders. As such, these Backlog and Bookings data do not correspond to the definition of Sales in that the funds expected to be received from customers are not reduced for any ‘netting’.
