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EPIQ Systems Inc. Reports Operating Results (10-Q)

July 28, 2010 | About:
10qk

10qk

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EPIQ Systems Inc. (EPIQ) filed Quarterly Report for the period ended 2010-06-30.

Epiq Systems Inc. has a market cap of $457.4 million; its shares were traded at around $12.49 with a P/E ratio of 25 and P/S ratio of 1.9. The dividend yield of Epiq Systems Inc. stocks is 0.3%. Epiq Systems Inc. had an annual average earning growth of 16.9% over the past 10 years.EPIQ is in the portfolios of Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

The direct cost of services, exclusive of depreciation and amortization, was $16.4 million for the three months ended June 30, 2010, a decrease of $3.3 million, or 17%, as compared to $19.7 million in the prior year. Contributing to this decrease was a $1.6 million decrease in the expense related to outside services, primarily related to temporary help and mailing, a $1.2 million decrease in legal noticing costs; and a $0.5 million decrease in production supplies. Changes by segment are discussed below.

General and administrative costs increased $0.1 million, or less than 1%, to $23.9 million for the three months ended June 30, 2010. Travel expense increased $0.4 million and expense related to leases increased $0.8 million. These increases were partially offset by a $0.6 million decrease in share-based compensation expense, and a $0.5 million decrease in outside services. Changes by segment are discussed below.

Bankruptcy direct and administrative costs, including reimbursed direct costs, decreased $1.0 million, or 6%, to $13.8 million for the three months ended June 30, 2010, compared to $14.8 million in the prior year. The decrease in these costs were the result of a $0.6 million decrease in outside services, a $0.2 million decrease in legal notification costs, a $0.6 million decrease in reimbursed direct costs, partially offset by a $0.4 million increase in compensation expense.

The direct cost of services, exclusive of depreciation and amortization, was $31.8 million for the six months ended June 30, 2010, a decrease of $7.6 million, or 19%, as compared to $39.4 million in the prior year. Contributing to this decrease was a $5.1 million decrease in the expense related to outside services, primarily related to temporary help and mailing, a $2.1 million decrease in production supplies, and a $1.3 million decrease in legal notification costs. These decreases were partially offset by a $0.5 million increase in compensation related expense, due primarily to increases in the bankruptcy segment resulting from the growth in corporate restructuring engagements; and a $0.4 million increase in building and equipment expense. Changes by segment are discussed below.

General and administrative costs increased $2.0 million, or 5%, to $44.1 million for the six months ended June 30, 2010. A litigation provision for a shareholder derivative action of $1.6 million was recorded for the six months ended June 30, 2010, travel expense increased $1.0 million, and lease expense increased $0.8 million. These increases were partially offset by a $1.2 million decrease in outside services and professional fees. Changes by segment are discussed below.

Bankruptcy direct and administrative costs, including reimbursed direct costs, increased $1.9 million, or 8%, to $27.1 million for the six months ended June 30, 2010, compared to $25.2 million in the prior year. The increases in these costs were primarily related to an increase of $1.6 million in compensation related expense and $0.4 million in technology costs related to the business growth and a $0.3 million increase in reimbursed direct costs, which directly corresponded to the increase in operating revenue from reimbursed direct costs.

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