UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 3, 2004
____________________
Commission File Number 0-22935
PEGASUS SOLUTIONS, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 75-2605174
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
CAMPBELL CENTRE I, 8350 NORTH CENTRAL EXPRESSWAY, SUITE 1900, DALLAS, TEXAS
75206
(Address of principal executive office)
(Zip Code)
Registrant's telephone number, including area code: (214) 234-4000
2
Item 12. Results of Operations and Financial Condition
On February 3, 2004, Pegasus Solutions, Inc. issued a press release announcing
its unaudited financial results for the fourth quarter and year ended December
31, 2003. Attached to this current report on Form 8-K is a copy of the related
press release dated February 3, 2004.
The information included herein and in Exhibit 99.1 shall not be deemed "filed"
for purposes on Section 18 of the Securities and Exchange Act of 1934, nor
shall it be incorporated by reference in any filing under the Securities Act of
1933.
Exhibit Number Description
- --------------- -----------
99.1 Press release issued February 3, 2004
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this current report on Form 8-K to be signed on its
behalf by the undersigned hereunto duly authorized.
PEGASUS SOLUTIONS, INC.
February 3, 2004 /s/ SUSAN K. COLE
--------------------
Chief Financial Officer
4
EXHIBIT INDEX
Exhibit Number Description
--------------- -----------
99.1 Press release issued February 3, 2004
Exhibit 99.1 Press release issued February 3, 2004
Contacts:
Pegasus Solutions
Marcie Hyder 214-234-4120
Press: Cindy Foor 214-234-4129
PEGASUS SOLUTIONS REPORTS FOURTH QUARTER AND FULL YEAR 2003 RESULTS
COMPANY REITERATES 2004 REVENUE GUIDANCE AND PROVIDES COMPLETE 2004 FINANCIAL
OUTLOOK
- - Q4 2003 revenues - $43.1 million
- - Q4 2003 Diluted EPS (GAAP) - $0.02
- - Q4 2003 Diluted EPS (Cash) - $0.06
- - Estimated 2004 revenues - $192 million to $200 million
- - Estimated 2004 diluted EPS (Cash) - $0.45 to $0.55
- - Resolution of PegasusCentralTM related issues on track
- - Unirez integration proceeding according to plan
DALLAS, FEBRUARY 3, 2004 - Pegasus Solutions, Inc. (Nasdaq: PEGS), a leading
global provider of hotel reservations-related services and technology, today
reported its financial results for the fourth quarter and year ended December
31, 2003. Revenues for the quarter topped $43 million, with Electronic
Distribution service revenues up 17 percent from the fourth quarter of 2002.
"Despite the challenges we faced in 2003, our financial position allowed us to
invest in strategic initiatives to improve our competitive position and support
long-term growth and profitability," said John F. Davis III, president, chief
executive officer and chairman of Pegasus Solutions. Davis continued: "We are
making progress with both our customer satisfaction and product development
initiatives. We also remain committed to PegasusCentral. And finally, the
integration of Unirez is proceeding as planned and will be substantially
complete by midyear."
PEGASUSCENTRAL UPDATE
- ----------------------
Since the company first announced stability issues with its Web-based property
management system PegasusCentral in late October, it has engaged IBM and
Majoris, both leading global software consulting and service firms. A
diagnostic review of the software has been completed as well as a detailed
root-cause analysis. Pegasus has selected Majoris to lead the remediation
efforts. Davis said, "We are pleased to report that Majoris has determined a
small percentage of the problems within the code would correct a significant
percentage of our customer issues. We selected Majoris to lead this effort
based on successful experiences our new chief information officer John Cole has
had with principals of Majoris." Regarding the largest PegasusCentral customer,
Davis added: "We have met with InterContinental Hotels Group and are currently
working with them to establish a final timeline for remediation, acceptance
testing and resuming installations."
FOURTH QUARTER FINANCIAL HIGHLIGHTS
- --------------------------------------
- - Revenues were $43.1 million compared to $43.4 million in the fourth
quarter of 2002.
- - On a GAAP basis, diluted net income (loss) per share was $0.02 compared
to $(0.06) in the same quarter in 2002.
- - Cash earnings were $0.06 per diluted share compared to $0.13 in the
fourth quarter of 2002.
- - EBITDA was $7.3 million, or 17 percent of revenues, compared to $8.3
million, or 19 percent of revenues, in the year-ago quarter. (See
attached tables.)
- - Adjusted EBITDA for the fourth quarter of 2003 was $9.7 million, or 22
percent of revenues. (See attached tables.)
- - Cash flow from operating activities was $6.2 million compared to $6.7
million in the fourth quarter of 2002.
- - Pegasus completed the acquisition of Unirez, Inc. on December 1, 2003.
Susan K. Cole, executive vice president and chief financial officer of Pegasus
Solutions, said, "I am pleased to report fourth quarter revenues reached the
high end of our previous revenue estimates. As part of our financial plan, we
continually evaluate our cost structure in an effort to obtain optimal margins.
As previously indicated and to give us a jump start on 2004, we increased our
advertising and marketing spending during the fourth quarter, while staying
within the guided cash earnings per share range."
FULL YEAR FINANCIAL HIGHLIGHTS
- ---------------------------------
- - Revenues were $172.7 million compared to $190.0 million in 2002.
- - On a GAAP basis, diluted net loss per share was $(0.07) compared to
$(0.14) in 2002.
- - Cash earnings were $0.33 per diluted share compared to $0.54 in 2002.
- - EBITDA was $25.1 million, or 15 percent of revenues, compared to $41.1
million, or 22 percent of revenues, in 2002. (See attached tables.)
- - Adjusted EBITDA was $34.8 million, or 20 percent of revenues, compared to
$37.6 million, or 20 percent of revenues, in 2002. (See attached tables.)
- - Cash flow from operating activities was $24.1 million compared to $38.3
million in 2002.
- - Cash and short-term investments at December 31, 2003 was $63.0 million.
- - Capital spending in 2003 was $19.4 million compared to $30.3 million in
2002.
SERVICE LINE REVIEW
- ---------------------
- - Fourth quarter Electronic Distribution service revenues were $6.6
million, an increase of 17 percent year-over-year. For 2003, Electronic
Distribution service revenues were $28.8 million, an increase of 20
percent from 2002. The increases in Electronic Distribution revenues for
the fourth quarter and full year 2003 were primarily due to increases in
Internet transactions of 22 percent and 32 percent, respectively.
- - Financial Services revenues for the fourth quarter increased 2 percent to
$7.5 million compared to the fourth quarter of 2002. Full year revenues
for Financial Services were $30.2 million, up 1 percent from 2002 despite
the negative impact of lower average daily room rates in 2003.
- - Fourth quarter Central Reservation System (CRS) service revenues were
$8.8 million, down 22 percent on a year-over-year basis. CRS service
revenues for 2003 were $38.3 million, a 24 percent decrease from 2002,
excluding a $3.5 million non-recurring customer termination fee in 2002.
The decrease in CRS revenues was primarily due to the lost contract with
Prime Hospitality and pricing pressure on contract renewals.
- - Property Systems revenues were $1.7 million in the fourth quarter
compared to $1.5 million in the fourth quarter of 2002. For 2003,
Property Systems revenues were $6.5 million, which is essentially flat
with 2002.
- - Service revenues for Representation Services were $15.3 million in the
fourth quarter and $57.4 million for 2003. Both fourth quarter and 2003
amounts include $874,000, which represents one month of revenues, for the
company's new connectivity service Unirez by PegasusTM. On a year-over-
year basis, service revenues from the company's full service offering
Utell by PegasusTM were down 3 percent for the fourth quarter and 12
percent for the full year. The decrease in Utell revenues was
primarily due to a reduction in the number of hotels in the Utell
portfolio and the continued weakness in trans-Atlantic travel.
OUTLOOK FOR 2004
- ------------------
- - Q1 2004 revenues estimated to range from $43 million to $45 million
- - Q1 2004 cash earnings estimated to range from $0.03 to $0.05 per diluted
share
"As we developed our 2004 budget, we remained committed to customer
satisfaction, product development, advertising, marketing and our employees,
who did not receive merit increases or bonuses in 2003," Cole said. She added:
"Due to our post-integration cost structure, I believe we will be able to
absorb these incremental costs, which are essential to our long-term growth,
while maintaining an EBITDA margin in excess of 20 percent. We expect our cost
structure will give us the ability to continue focusing on our goals and
investing in our future. Additionally, our board of directors recently approved
a corporate 10b5-1 stock repurchase plan, which will allow us to continually
repurchase shares even during blackout periods. This further highlights our
confidence in the company as we put our excess capital to good use."
Davis concluded: "As we enter 2004, I am confident we have taken the necessary
steps to improve our business. Our reinvigorated sales force and technology
organization - along with the recent management additions - are all aligned for
solid performance. By focusing on critical product development priorities and
executing our multi-tiered strategy to serve the independent and small hotel
company market, we're poised for success."
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
- -------------------------------------------------
Reconciling items between GAAP net income (loss) and cash earnings primarily
consist of purchase accounting amortization and restructure costs. Schedules
that reconcile GAAP amounts to cash earnings, EBITDA and adjusted EBITDA are
included with this release, as well as the presentation accompanying the
company's conference call Webcast. Reconciling items between EBITDA and
adjusted EBITDA consist of restructure charges and other non-recurring items.
In addition to the types of reconciling items included in the attached tables,
first quarter 2004 GAAP net income may include the cumulative effect of
adopting Financial Accounting Standards Board Interpretation No. 46,
"Consolidation of Variable Interest Entities" (FIN 46). FASB Staff
Position 46-6 delayed the effective date of FIN 46, and it will be effective
for Pegasus on March 31,2004. As a result, a GAAP net income estimate is not
currently available, but you can find more information on how FIN 46 will
affect Pegasus in the company's Form 10-Q, which was filed with the Securities
and Exchange Commission on August 14, 2003.
CONFERENCE CALL
- ----------------
Pegasus will host a conference call today at 5:00 p.m. Eastern Time and will
simultaneously broadcast it live over the Internet. To access the Webcast, go
to www.pegs.com and click on "Investor." The online archive of the Webcast will
------------
be available two hours after the call for 30 days.
COMPANY INFORMATION
- --------------------
Dallas-based Pegasus Solutions, Inc.(Nasdaq: PEGS) is a leading global provider
of hotel reservations-related services and technology. Founded in 1989,
Pegasus' customers include a majority of the world's travel agencies and more
than 50,000 hotel properties around the globe. Pegasus' services include
central reservation systems, electronic distribution services, commission
processing and payment services, property management systems, and marketing
representation services. The company's representation services, including
Utell, are used by nearly 7,000 member hotels in 140 countries, making Pegasus
the hotel industry's largest third-party marketing and reservations provider.
Pegasus has 18 offices in 11 countries, including regional hubs in London,
Scottsdale and Singapore. For more information, please visit www.pegs.com.
------------
Some statements made in this press release are forwardlooking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forwardlooking statements include statements regarding future events, financial
projections, estimated transaction volumes and expected average daily room
rates, as well as management's expectations, beliefs, hopes, intentions or
strategies regarding the future. Because such statements deal with future
events, they are subject to various risks and uncertainties, and actual results
could differ materially from current expectations. Factors that could cause or
contribute to such difference include but are not limited to terrorist acts or
war, global health epidemics, variation in demand for and acceptance of the
company's products and services and timing of sales, general economic condition
including a slowdown in technology spending by the company's current and
prospective customers, failure to maintain successful relationships with and to
establish new relationships with customers, the success of the company's
international operations, the level of product and price competition from
existing and new competitors, changes in the company's level of operating
expenses and its ability to control costs, delays in developing, marketing and
deploying new products and services, as well as other risks identified in the
company's Securities and Exchange Commission filings, including those appearing
under the caption Risk Factors in the company's 2002 Annual Report on Form 10-K
and Form S-3, as amended, declared effective in November 2003.
The conference call may include other forward-looking statements related to
transaction volume and average daily room rates. Such information can be found
in the presentation accompanying the conference call Webcast. To access the
Webcast, go to www.pegs.com and click on "Investor."
------------
Management believes that presentation of non-GAAP financial measures such as
cash earnings per share, EBITDA and adjusted EBITDA is useful because it allows
investors and management to evaluate and compare the company's core cash-based
operating results from ongoing operations from period to period in a more
meaningful and consistent manner than relying exclusively on GAAP financial
measures. Non-GAAP financial measures however should not be considered in
isolation or as an alternative to financial measures calculated and presented
in accordance with GAAP. In addition, Pegasus' calculation of cash earning per
share, EBITDA and adjusted EBITDA is not necessarily comparable to similarly
titled measures reported by other companies. Schedules that reconcile cash
earnings per share, EBITDA and adjusted EBITDA to the most directly comparable
GAAP amounts are included with this release and the presentation accompanying
the company's conference call Webcast.
# # #
PEGASUS SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2003 2002 2003 2002
---- ---- ---- ----
Revenues:
Service revenues $ 39,883 $ 40,664 $161,245 $178,769
Customer reimbursements 3,243 2,780 11,485 11,181
--------- --------- ------- --------
Total revenues 43,126 43,444 172,730 189,950
--------- --------- ------- --------
Costs of services:
Cost of services 20,924 19,941 85,207 88,717
Customer reimbursements 3,243 2,780 11,485 11,181
--------- ------ ------- --------
Total costs of services 24,167 22,721 96,692 99,898
--------- ------- ------- --------
Research and development 1,654 1,317 5,199 5,821
General and administrative expenses 5,423 6,468 23,348 25,146
Marketing and promotion expenses 4,538 4,620 16,484 17,998
Depreciation and amortization 5,570 11,623 28,029 48,075
Restructure costs - - 5,949 -
----- ------ ------ ------
Operating income (loss) 1,774 (3,305) (2,971) (6,988)
Other income (expense):
Interest income (expense), net (475) 307 (129) 1,224
Other 93 535 363 130
------- ----- ------ ------
Income (loss) before income taxes 1,392 (2,463) (2,737) (5,634)
Income tax benefit (expense) (777) 991 905 2,115
------ ------ ------ ------
Net income (loss) $ 615 $ (1,472) $(1,832) $(3,519)
======== ========= ======== ========
Basic and diluted net income
(loss) per share $ 0.02 $ (0.06) $(0.07) $ (0.14)
======== ========= ======= ========
Weighted average shares outstanding:
Basic 25,044 24,822 24,864 24,818
======= ====== ====== =======
Diluted 25,404 24,822 24,864 24,818
======= ====== ====== =======
PEGASUS SOLUTIONS, INC.
RECONCILIATION OF CASH EARNINGS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
Three Months Ended
December 31, 2003
-----------------
Cash Earnings
As Reported Adjustments Cash Earnings
----------- ----------- -------------
Revenues:
Service revenues $ 39,883 $ - $ 39,883
Customer reimbursements 3,243 - 3,243
------------ ------------ ------------
Total revenues 43,126 - 43,126
-------------- ------------- ------------
Costs of services:
Cost of services 20,924 - 20,924
Customer reimbursements 3,243 - 3,243
------------- ------------- ---------------
Total costs of services 24,167 - 24,167
------------- ------------- ---------------
Research and development 1,654 - 1,654
General and administrative expenses 5,423 - 5,423
Marketing and promotion expenses 4,538 - 4,538
Depreciation and amortization 5,570 (1,005) (1) 4,565
------------- ------------- ---------------
Operating income 1,774 1,005 2,779
Other income (expense):
Interest income (expense), net (475) - (475)
Other 93 - 93
------------- ------------- ---------------
Income before income taxes 1,392 1,005 2,397
Income tax expense (777) (134) (2) (911)
------------- ------------- ---------------
Net income $ 615 $ 871 $ 1,486
=============== =============== ==============
Diluted net income per share $ 0.02 $ 0.04 $ 0.06
=============== =============== ==============
Diluted weighted average
shares outstanding 25,404 - 25,404
=============== =============== ==============
Notes:
------
(1) To adjust for amortization of purchased identifiable intangible
assets.
(2) To adjust income tax expense for assumed 38% tax rate for cash
earnings.
PEGASUS SOLUTIONS, INC.
RECONCILIATION OF CASH EARNINGS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
Three Months Ended
December 31, 2002
-----------------
Cash Earnings
As Reported Adjustments Cash Earnings
------------- ------------- ---------------
Revenues:
Service revenues $ 40,664 $ - $ 40,664
Customer reimbursements 2,780 - 2,780
------------- ------------- ---------------
Total revenues 43,444 - 43,444
------------- ------------- ---------------
Costs of services:
Cost of services 19,941 - 19,941
Customer reimbursements 2,780 - 2,780
------------- ------------- ---------------
Total costs of services 22,721 - 22,721
------------- ------------- ---------------
Research and development 1,317 - 1,317
General and administrative expenses 6,468 - 6,468
Marketing and promotion expenses 4,620 - 4,620
Depreciation and amortization 11,623 (7,803) (1) 3,820
------------- ------------- -------
Operating income (loss) (3,305) 7,803 4,498
Other income (expense):
Interest income, net 307 - 307
Other 535 - 535
------------- ------------- ---------------
Income (loss) before income taxes (2,463) 7,803 5,340
Income tax benefit (expense) 991 (3,020) (2) (2,029)
------------- ------------- -------
Net income (loss) $ (1,472) $ 4,783 $ 3,311
============= ============= ===============
Diluted net income (loss) per share $ (0.06) $ 0.19 $ 0.13
============= ============= ===============
Diluted weighted average shares outstanding 24,822 443 25,265
============= ============= ===============
<FN>
Notes:
------
(1) To adjust for amortization of purchased identifiable intangible assets.
(2) To adjust income tax benefit (expense) for assumed 38% tax rate for cash earnings.
PEGASUS SOLUTIONS, INC.
RECONCILIATION OF CASH EARNINGS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
Year Ended December 31, 2003
----------------------------
Cash Earnings
As Reported Adjustments Cash Earnings
------------- ------------- ---------------
Revenues:
Service revenues $ 161,245 $ - $ 161,245
Customer reimbursements 11,485 - 11,485
------------- ------------- ---------------
Total revenues 172,730 - 172,730
------------- ------------- ---------------
Costs of services:
Cost of services 85,207 - 85,207
Customer reimbursements 11,485 - 11,485
------------- ------------- ---------------
Total costs of services 96,692 - 96,692
------------- ------------- ---------------
Research and development 5,199 - 5,199
General and administrative expenses 23,348 - 23,348
Marketing and promotion expenses 16,484 - 16,484
Depreciation and amortization 28,029 (10,429) (1) 17,600
Restructure costs 5,949 (5,949) (2) -
------------- ------------- -------
Operating income (loss) (2,971) 16,378 13,407
Other income (expense):
Interest income (expense), net (129) - (129)
Other 363 - 363
------------- ------------- ---------------
Income (loss) before income taxes (2,737) 16,378 13,641
Income tax benefit (expense) 905 (6,089) (3) (5,184)
------------- ------------- -------
Net income (loss) $ (1,832) $ 10,289 $ 8,457
============= ============= ===============
Diluted net income (loss) per share $ (0.07) $ 0.40 $ 0.33
============= ============= ===============
Diluted weighted average shares outstanding 24,864 522 25,386
============= ============= ===============
<FN>
Notes:
------
(1) To adjust for amortization of purchased identifiable intangible assets.
(2) To adjust for non-recurring restructure costs related to the company's strategic
integration.
(3) To adjust income tax benefit (expense) for assumed 38% tax rate for cash earnings.
PEGASUS SOLUTIONS, INC.
RECONCILIATION OF CASH EARNINGS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
Year Ended December 31, 2002
----------------------------
Cash Earnings
As Reported Adjustments Cash Earnings
------------- ------------- ---------------
Revenues:
Service revenues $ 178,769 $ (3,534) (1) $175,235
Customer reimbursements 11,181 - 11,181
------------- ------------- ---------------
Total revenues 189,950 (3,534) 186,416
------------- ------------- ---------------
Costs of services:
Cost of services 88,717 - 88,717
Customer reimbursements 11,181 - 11,181
------------- ------------- ---------------
Total costs of services 99,898 - 99,898
------------- ------------- ---------------
Research and development 5,821 - 5,821
General and administrative expenses 25,146 - 25,146
Marketing and promotion expenses 17,998 - 17,998
Depreciation and amortization 48,075 (31,495) (2) 16,580
------------- ------------- ---------
Operating income (loss) (6,988) 27,961 20,973
Other income (expense):
Interest income (expense), net 1,224 - 1,224
Other 130 - 130
------------- ------------- ---------------
Income (loss) before income taxes (5,634) 27,961 22,327
Income tax benefit (expense) 2,115 (10,599) (3) (8,484)
------------- ------------- ---------
Net income (loss) $ (3,519) $ 17,362 $ 13,843
============= ============= ===============
Diluted net income (loss) per share $ (0.14) $ 0.68 $ 0.54
============= ============= ===============
Diluted weighted average shares outstanding 24,818 734 25,552
============= ============= ===============
<FN>
Notes:
------
(1) To adjust for non-recurring customer termination fee.
(2) To adjust for amortization of purchased identifiable intangible assets.
(3) To adjust income tax benefit (expense) for assumed 38% tax rate for cash earnings.
PEGASUS SOLUTIONS, INC.
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA
(IN THOUSANDS)
(UNAUDITED)
Three Months Ended
------------------
December 31, 2003 December 31, 2002
------------------- -------------------
Total revenues $ 43,126 $ 43,444
=================== ===================
Operating income (loss) (1) 1,774 (3,305)
Add: depreciation and amortization 5,570 11,623
------------------- -------------------
EBITDA $ 7,344 $ 8,318
=================== ===================
EBITDA margin 17% 19%
Non-recurring items 2,343 (2) -
------------------- ---
Adjusted EBITDA $ 9,687 $ 8,318
=================== ===================
Adjusted EBITDA margin 22% 19%
Year Ended
- ----------------------------------------------
December 31, 2003 December 31, 2002
- ---------------------------------------------- -------------------
Total revenues $ 172,730 $ 189,950
Less: non-recurring customer termination fee - (3,534) (3)
------------------- -------------------
Adjusted revenues $ 172,730 $ 186,416
=================== ===================
Operating loss (1) (2,971) (6,988)
Add: depreciation and amortization 28,029 48,075
------------------- -------------------
EBITDA $ 25,058 $ 41,087
=================== ===================
EBITDA margin 15% 22%
Adjustments:
Restructure costs 5,949 -
Non-recurring customer termination fee - (3,534) (3)
Other non-recurring items 3,771 (2), (4) -
------------------- ---
Adjusted EBITDA $ 34,778 $ 37,553
=================== ===================
Adjusted EBITDA margin 20% 20%
<FN>
(1) For reconciling items between operating income (loss) and net income (loss),
see the Condensed
Consolidated Statements of Operations included in this release.
(2) Amount represents non-recurring expenses primarily for severance and expenses
related to
PegasusCentral, the company's IT organization and product management initiatives.
(3) Amount represents non-recurring customer termination fee.
(4) Amount includes costs related to moving the company's Phoenix facilities and
transition-
related activities resulting from the company's strategic integration. These costs
cannot
be classified as restructure costs because they provide some future benefit to
ongoing
operations.
PEGASUS SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
DECEMBER 31, DECEMBER 31,
2003 2002
--------- ---------
ASSETS
Cash and cash equivalents $ 58,983 $ 19,893
Short-term investments 4,046 4,033
Accounts receivable, net 22,298 25,886
Other current assets 11,092 8,368
--------- ---------
Total current assets 96,419 58,180
Goodwill, net 164,120 139,533
Intangible assets, net 7,831 6,013
Property and equipment, net 75,474 71,442
Other noncurrent assets 22,716 12,927
--------- ---------
Total assets $366,560 $288,095
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities $ 24,672 $ 26,574
Unearned income 7,213 7,812
Other current liabilities 5,477 6,799
--------- ---------
Total current liabilities 37,362 41,185
Noncurrent uncleared commission checks 4,545 4,641
Other noncurrent liabilities 20,997 16,379
Convertible debt 75,000 -
Commitments and contingencies
Stockholders' equity:
Common stock 251 247
Additional paid-in capital 290,828 287,676
Unearned compensation - (571)
Accumulated other comprehensive loss (834) (1,705)
Accumulated deficit (61,589) (59,757)
--------- ---------
Total stockholders' equity 228,656 225,890
--------- ---------
Total liabilities and stockholders' equity $366,560 $288,095
========= =========