AMS Announces Year to Year First Quarter Revenue Growth

Apr 19, 2001, 01:00 ET from American Management Systems

    FAIRFAX, Va., April 19 /PRNewswire/ -- American Management Systems
 (Nasdaq:   AMSY) today announced 2001 first quarter earnings of $5.5 million
 ($0.13 per share diluted) on revenues of $323 million.  Revenue growth was
 approximately 4% over the $311 million reported in the same period last year.
 Without a restructuring charge of $13.8 million, earnings for the quarter
 would have been $13.6 million ($0.33 per share diluted).  Absent the
 restructuring charge, income from operations increased in line with revenue
 growth for the period.
     The restructuring charge of $13.8 million results from the Company's
 strategy to consolidate operating activities and streamline its internal
 operations to a shared services model as previously announced.  An additional
 charge of between $4 million and $7 million will be taken by the end of fiscal
 year 2001 to complete these initiatives.
     "We believe our financial performance is quite encouraging in this
 unsettled information technology marketplace," said AMS Chief Executive
 Officer and President William M. Purdy.
 
     About AMS
     American Management Systems (AMS) is an international business and
 information technology consulting firm with 2000 revenues of $1.28 billion.
 Founded in 1970, AMS leverages deep industry expertise to manage complex IT,
 eBusiness and systems integration projects for clients including 43 state
 governments, most federal agencies and hundreds of companies in the FORTUNE
 500(TM).  AMS is headquartered in Fairfax, Virginia, and has approximately
 8,750 employees in 51 offices worldwide. Forbes magazine ranked AMS among
 "America's 400 best big companies," and Fortune magazine placed AMS 44th on
 its list of the "100 Best Companies to Work for in America" in 2000.  AMS is
 traded in the NASDAQ under the symbol AMSY and can be found on the web at
 http://www.ams.com .
 
     To the extent that the foregoing discussion includes forward-looking
 statements, they should be considered in light of the risks inherent in AMS's
 business, as discussed in the company's public documents filed with the SEC
 and statements made by senior management.
 
 
                   American Management Systems, Incorporated
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                   Unaudited
                      (In millions, except per share data)
 
                                                          For the Quarter
                                                           Ended March 31,
                                                         2001           2000
                                                       -------        -------
     REVENUES                                          $323.0         $311.1
 
     EXPENSES (1):
         Client Project Expenses                        176.1          163.0
         Other Operating Expenses                        96.8          102.7
         Corporate Expenses                              23.9           20.0
                                                       -------        -------
                                                        296.8          285.7
         Restructuring Charge                            13.8              -
                                                       -------        -------
 
     INCOME FROM OPERATIONS                              12.4           25.4
 
     OTHER (INCOME) EXPENSE:
         Interest (Income) Expense                        0.5              -
         Other (Income) Expense                           1.2           (1.8)
         Loss on Equity Investments                       1.4            1.3
                                                        -------        -------
                                                          3.1           (0.5)
 
     INCOME BEFORE INCOME TAXES                           9.3           25.9
     INCOME TAXES                                         3.8           10.6
                                                        -------        -------
     NET INCOME                                          $5.5          $15.3
                                                        =======        =======
     WEIGHTED AVERAGE SHARES OUTSTANDING                 41.6           41.3
                                                        =======        =======
     BASIC NET INCOME PER SHARE                         $0.13          $0.37
                                                        =======        =======
     WEIGHTED AVERAGE SHARES AND EQUIVALENTS             42.0           41.8
                                                        =======        =======
     DILUTED NET INCOME PER SHARE                       $0.13          $0.36
                                                        =======        =======
 
     (1) Certain amounts from prior year have been reclassified for comparative
         purposes
 
 
                   American Management Systems, Incorporated
                        CONSOLIDATED REVENUES BY MARKET
                                   Unaudited
                                 (In millions)
 
                                                           For the Quarter
                                                           Ended March 31,
                                                         2001           2000
                                                       -------        -------
 
     New Media and Communications Firms                 $86.7          $78.9
 
     Financial Services Institutions                     52.1           54.9
 
     State and Local Governments and Education           77.9           77.9
 
     Federal Government Agencies                         90.5           84.1
 
     Other Corporate Clients                             15.8           15.3
                                                       -------        -------
 
     Total Revenues                                    $323.0         $311.1
                                                       =======        =======
 
 
                   American Management Systems, Incorporated
                          CONSOLIDATED BALANCE SHEETS
                                 (In millions)
 
                                                    3/31/2001
     ASSETS                                        (Unaudited)     12/31/2000
                                                   ------------    -----------
     CURRENT ASSETS:
         Cash and Cash Equivalents                      $17.8          $43.2
         Accounts and Notes Receivable                  310.3          311.2
         Prepaid Expenses and Other Current Assets       29.3           22.9
                                                       -------         -------
                                                        357.4          377.3
 
     FIXED ASSETS:
         Equipment                                       46.0           49.4
         Furniture and Fixtures                          26.8           26.8
         Leasehold Improvements                          25.5           24.0
                                                       -------         -------
                                                         98.3          100.2
     Accumulated Depreciation and Amortization          (63.2)         (65.2)
                                                       -------         -------
                                                         35.1           35.0
 
     OTHER ASSETS:
         Purchased and Developed Computer
          Software (Net of Accumulated
          Amortization of $97.3 and $97.5)              147.6          141.9
         Intangibles (Net of Accumulated
          Amortization of $7.1 and $6.6)                 24.8           25.4
         Other Assets                                    59.8           66.3
                                                       -------        -------
                                                        232.2          233.6
                                                       -------        -------
 
     TOTAL ASSETS                                      $624.7         $645.9
                                                       =======        =======
 
 
                   American Management Systems, Incorporated
                          CONSOLIDATED BALANCE SHEETS
                        (In millions, except share data)
 
                                                    3/31/2001
     LIABILITIES AND STOCKHOLDERS' EQUITY          (Unaudited)     12/31/2000
                                                   ------------    ------------
     CURRENT LIABILITIES:
         Notes Payable and Line of Credit               $53.1          $41.1
         Accounts Payable                                18.6           15.1
         Other Accrued Compensation and Related Items    35.1           74.3
         Deferred Revenues                               31.9           43.0
         Other Accrued Liabilities                       14.2           13.8
         Accrued Restructuring Charge                     7.8              -
        Income Taxes Payable                              6.1            7.5
                                                       -------         -------
                                                        166.8          194.8
     Deferred Income Taxes                               12.3            7.1
                                                       -------         -------
                                                        179.1          201.9
 
     NONCURRENT LIABILITIES:
         Notes Payable                                    8.8           10.3
         Deferred Compensation                           36.0           35.3
         Deferred Income Taxes                           38.2           38.0
                                                       -------         -------
                                                         83.0           83.6
                                                       -------         -------
     TOTAL LIABILITIES                                  262.1          285.5
 
     STOCKHOLDERS' EQUITY:
         Preferred Stock ($0.10 Par Value; 4,000,000
          Shares Authorized, None Issued or Outstanding)
          Common Stock ($0.01 Par Value; 200,000,000
          Shares Authorized, 51,057,214 and 51,057,214
          Issued and 41,602,196 and 41,527,563
          Outstanding)                                    0.5            0.5
         Capital in Excess of Par Value                  86.0           86.3
         Retained Earnings                              346.5          341.0
         Accumulated Other Comprehensive Loss           (23.0)         (18.0)
         Common Stock in Treasury, at Cost
          (9,455,018 and 9,529,651 Shares)              (47.4)         (49.4)
                                                       -------        -------
                                                        362.6          360.4
                                                       -------        -------
 
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY        $624.7         $645.9
                                                       =======        =======
 
 

SOURCE American Management Systems
    FAIRFAX, Va., April 19 /PRNewswire/ -- American Management Systems
 (Nasdaq:   AMSY) today announced 2001 first quarter earnings of $5.5 million
 ($0.13 per share diluted) on revenues of $323 million.  Revenue growth was
 approximately 4% over the $311 million reported in the same period last year.
 Without a restructuring charge of $13.8 million, earnings for the quarter
 would have been $13.6 million ($0.33 per share diluted).  Absent the
 restructuring charge, income from operations increased in line with revenue
 growth for the period.
     The restructuring charge of $13.8 million results from the Company's
 strategy to consolidate operating activities and streamline its internal
 operations to a shared services model as previously announced.  An additional
 charge of between $4 million and $7 million will be taken by the end of fiscal
 year 2001 to complete these initiatives.
     "We believe our financial performance is quite encouraging in this
 unsettled information technology marketplace," said AMS Chief Executive
 Officer and President William M. Purdy.
 
     About AMS
     American Management Systems (AMS) is an international business and
 information technology consulting firm with 2000 revenues of $1.28 billion.
 Founded in 1970, AMS leverages deep industry expertise to manage complex IT,
 eBusiness and systems integration projects for clients including 43 state
 governments, most federal agencies and hundreds of companies in the FORTUNE
 500(TM).  AMS is headquartered in Fairfax, Virginia, and has approximately
 8,750 employees in 51 offices worldwide. Forbes magazine ranked AMS among
 "America's 400 best big companies," and Fortune magazine placed AMS 44th on
 its list of the "100 Best Companies to Work for in America" in 2000.  AMS is
 traded in the NASDAQ under the symbol AMSY and can be found on the web at
 http://www.ams.com .
 
     To the extent that the foregoing discussion includes forward-looking
 statements, they should be considered in light of the risks inherent in AMS's
 business, as discussed in the company's public documents filed with the SEC
 and statements made by senior management.
 
 
                   American Management Systems, Incorporated
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                   Unaudited
                      (In millions, except per share data)
 
                                                          For the Quarter
                                                           Ended March 31,
                                                         2001           2000
                                                       -------        -------
     REVENUES                                          $323.0         $311.1
 
     EXPENSES (1):
         Client Project Expenses                        176.1          163.0
         Other Operating Expenses                        96.8          102.7
         Corporate Expenses                              23.9           20.0
                                                       -------        -------
                                                        296.8          285.7
         Restructuring Charge                            13.8              -
                                                       -------        -------
 
     INCOME FROM OPERATIONS                              12.4           25.4
 
     OTHER (INCOME) EXPENSE:
         Interest (Income) Expense                        0.5              -
         Other (Income) Expense                           1.2           (1.8)
         Loss on Equity Investments                       1.4            1.3
                                                        -------        -------
                                                          3.1           (0.5)
 
     INCOME BEFORE INCOME TAXES                           9.3           25.9
     INCOME TAXES                                         3.8           10.6
                                                        -------        -------
     NET INCOME                                          $5.5          $15.3
                                                        =======        =======
     WEIGHTED AVERAGE SHARES OUTSTANDING                 41.6           41.3
                                                        =======        =======
     BASIC NET INCOME PER SHARE                         $0.13          $0.37
                                                        =======        =======
     WEIGHTED AVERAGE SHARES AND EQUIVALENTS             42.0           41.8
                                                        =======        =======
     DILUTED NET INCOME PER SHARE                       $0.13          $0.36
                                                        =======        =======
 
     (1) Certain amounts from prior year have been reclassified for comparative
         purposes
 
 
                   American Management Systems, Incorporated
                        CONSOLIDATED REVENUES BY MARKET
                                   Unaudited
                                 (In millions)
 
                                                           For the Quarter
                                                           Ended March 31,
                                                         2001           2000
                                                       -------        -------
 
     New Media and Communications Firms                 $86.7          $78.9
 
     Financial Services Institutions                     52.1           54.9
 
     State and Local Governments and Education           77.9           77.9
 
     Federal Government Agencies                         90.5           84.1
 
     Other Corporate Clients                             15.8           15.3
                                                       -------        -------
 
     Total Revenues                                    $323.0         $311.1
                                                       =======        =======
 
 
                   American Management Systems, Incorporated
                          CONSOLIDATED BALANCE SHEETS
                                 (In millions)
 
                                                    3/31/2001
     ASSETS                                        (Unaudited)     12/31/2000
                                                   ------------    -----------
     CURRENT ASSETS:
         Cash and Cash Equivalents                      $17.8          $43.2
         Accounts and Notes Receivable                  310.3          311.2
         Prepaid Expenses and Other Current Assets       29.3           22.9
                                                       -------         -------
                                                        357.4          377.3
 
     FIXED ASSETS:
         Equipment                                       46.0           49.4
         Furniture and Fixtures                          26.8           26.8
         Leasehold Improvements                          25.5           24.0
                                                       -------         -------
                                                         98.3          100.2
     Accumulated Depreciation and Amortization          (63.2)         (65.2)
                                                       -------         -------
                                                         35.1           35.0
 
     OTHER ASSETS:
         Purchased and Developed Computer
          Software (Net of Accumulated
          Amortization of $97.3 and $97.5)              147.6          141.9
         Intangibles (Net of Accumulated
          Amortization of $7.1 and $6.6)                 24.8           25.4
         Other Assets                                    59.8           66.3
                                                       -------        -------
                                                        232.2          233.6
                                                       -------        -------
 
     TOTAL ASSETS                                      $624.7         $645.9
                                                       =======        =======
 
 
                   American Management Systems, Incorporated
                          CONSOLIDATED BALANCE SHEETS
                        (In millions, except share data)
 
                                                    3/31/2001
     LIABILITIES AND STOCKHOLDERS' EQUITY          (Unaudited)     12/31/2000
                                                   ------------    ------------
     CURRENT LIABILITIES:
         Notes Payable and Line of Credit               $53.1          $41.1
         Accounts Payable                                18.6           15.1
         Other Accrued Compensation and Related Items    35.1           74.3
         Deferred Revenues                               31.9           43.0
         Other Accrued Liabilities                       14.2           13.8
         Accrued Restructuring Charge                     7.8              -
        Income Taxes Payable                              6.1            7.5
                                                       -------         -------
                                                        166.8          194.8
     Deferred Income Taxes                               12.3            7.1
                                                       -------         -------
                                                        179.1          201.9
 
     NONCURRENT LIABILITIES:
         Notes Payable                                    8.8           10.3
         Deferred Compensation                           36.0           35.3
         Deferred Income Taxes                           38.2           38.0
                                                       -------         -------
                                                         83.0           83.6
                                                       -------         -------
     TOTAL LIABILITIES                                  262.1          285.5
 
     STOCKHOLDERS' EQUITY:
         Preferred Stock ($0.10 Par Value; 4,000,000
          Shares Authorized, None Issued or Outstanding)
          Common Stock ($0.01 Par Value; 200,000,000
          Shares Authorized, 51,057,214 and 51,057,214
          Issued and 41,602,196 and 41,527,563
          Outstanding)                                    0.5            0.5
         Capital in Excess of Par Value                  86.0           86.3
         Retained Earnings                              346.5          341.0
         Accumulated Other Comprehensive Loss           (23.0)         (18.0)
         Common Stock in Treasury, at Cost
          (9,455,018 and 9,529,651 Shares)              (47.4)         (49.4)
                                                       -------        -------
                                                        362.6          360.4
                                                       -------        -------
 
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY        $624.7         $645.9
                                                       =======        =======
 
 SOURCE  American Management Systems