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EX-10.1 - EX-10.1 - CMTSU Liquidation, Inc.a11-6292_1ex10d1.htm

Exhibit 99.1

 

GRAPHIC

 

CIBER, Inc.

6363 S. Fiddler’s Green Circle, Suite 1400

Greenwood Village, CO  80111

www.ciber.com

 

Contact:

 

Gary Kohn

 

Robin Caputo

 

 

 

 

 

 

 

Investor Relations

 

Media Relations

 

 

303-625-5256

 

303-267-3876

 

 

gkohn@ciber.com

 

rcaputo@ciber.com

 

CIBER REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS

Reaffirms 2011 Outlook

 

GREENWOOD VILLAGE, Colo., Feb. 22, 2011— CIBER, Inc. (NYSE: CBR), a global information technology consulting, services and outsourcing company, today reported results for the fourth quarter and full year 2010.

 

Financial highlights for the fourth quarter 2010 included:

·                  Revenue increased 6% to $277.4 million, the largest year-over-year increase in 8 quarters

·                  Constant currency adjusted revenue increased 8%

·                  Operating loss of $6.3 million, including $9.9 million (pre-tax) of bad debt expense and project write-off charges

·                  Excluding the charges, operating income of $3.6 million

·                  Net loss of $3.3 million, or $0.05 per share

·                  Excluding the charges, net income of $2.6 million, or $0.04 per share

 

Financial highlights for the Full Year 2010:

·                  Revenue increased 3% to $1.1 billion

·                  Constant currency adjusted revenue increased 4%

·                  Operating loss of $103.2 million, including $9.9 million (pre-tax) of bad debt and project write-off charges, and the $118.1 million (pre-tax) second quarter goodwill impairment and executive transition charges

·                  Excluding the charges, operating income of $24.8 million

·                  Net loss of $77.2 million, or $1.11 per share

·                  Excluding the charges, net income of $13.6 million, or $0.20 per share

·                  Cash flow from operations of $35 million

 

Strategic and operational highlights from 2010:

·                  Developed comprehensive strategic plan

·                  Unified sales and delivery organizations across North America

·                  Strengthened and added significant operating regimens

·                  Added complementary strength to management and board

·                  Invested in offshore delivery

 

President and Chief Executive Officer Dave Peterschmidt said, “We are undergoing an important transformation at CIBER.  This past year we set into motion a detailed and focused strategic plan and put in place the operational regimens necessary to achieve sustained and predictable performance and to increase shareholder value.  We have

 

1



 

entered 2011with a tighter focus, increased discipline, a more efficient model and we continue to see general economic improvements in many markets.”

 

Consolidated Results

 

Fourth quarter revenue of $277.4 million increased 6%, or 8% on a constant currency basis, compared to last year’s fourth quarter.  Driving the revenue growth in the quarter was the performance of CIBER’s two largest divisions.  The International division, which totaled 41% of consolidated revenue, achieved revenue growth of 17%, or 24% adjusted for currency, while the Custom Solutions division, which comprised 33% of consolidated revenue, delivered 6% revenue growth.  The Segmenta acquisition completed in 2010 added 2% to consolidated and 6% to International revenue growth in the quarter.

 

Full year revenue exceeded expectations totaling $1.1 billion, an increase of 3% or 4% on a constant currency basis.  Full-year revenue growth was driven by the International division’s revenue growth of 10%, or 13% adjusted for currency.  The International division represented 36% of full-year consolidated revenue.  The Segmenta acquisition added 1% to consolidated and 3% to International revenue growth for the year.  The U.S. ERP division totaled 12% of full-year revenue and posted growth of 6% compared to 2009.

 

Gross margin for the quarter was 23.4% compared to 24.2% in last year’s fourth quarter.  International and Custom Solutions, CIBER’s two largest divisions, each improved gross margin from last year’s fourth quarter.  On a consolidated basis, the majority of the year-over-year decrease in gross margin was a result of the project charges taken in the fourth quarter 2010.  Additionally, gross margin was impacted in the fourth quarter of 2010 by project overruns on a small number of fixed-price contracts as well as CIBER ceasing to recognize revenue for services being delivered to a single financially distressed client.  Gross margin also included investments for future revenue growth, higher than normal use of subcontractors utilized to fill demand, and problematic legacy engagements which will come to closure in future periods.  Full-year 2010 gross margin of 24.5% was down 50 basis points from last year.

 

Fourth quarter operating loss was $6.3 million.  Excluding the bad debt expense and project write-off charges operating income was $3.6 million, and operating income margin was 1.3%.  In the same period last year, operating income was $6.2 million and operating income margin was 2.4%.  Full-year 2010 operating loss was $103.2 million including the bad debt and project write-off charges, and the $118.1 million second quarter goodwill impairment and executive transition charges.  Excluding these items, 2010 operating income was $24.8 million and operating margin was 2.3%.  Fourth quarter and full-year 2010 operating income included additional expenses from the organizational transition items resulting from the newly adopted strategy including combining of the North American branch offices, consolidation of the sales and delivery organizations, investments in sales training and infrastructure; expansion of India delivery capabilities; as well as senior leadership changes.

 

Fourth quarter net loss was $3.3 million or a $0.05 per share.  Excluding the bad debt expense and project write-off charges net income was $2.6 million or $0.04 per share.  Full-year 2010 net loss was $77.2 million, or $1.11 per share including the bad debt and project write-off charges, and the second quarter goodwill impairment and executive transition charges.  Excluding these items, 2010 net income was $13.7 million or $0.20 per share.

 

The fourth quarter tax rate included a $1.0 million benefit resulting from the utilization of net operating loss carry forwards within Europe.  For the full-year 2010 the Company had a net tax benefit driven primarily by the tax deductable portion of the goodwill impairment charge which significantly reduced U.S. taxable income.

 

Capital Deployment and Liquidity

 

CIBER’s total cash balance at year end was $69.3 million.  Cash provided by operating activities for the year was $35 million.  Capital expenditures for the year totaled $14 million.

 

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Management has been focused on improving its days sales outstanding, or DSO’s.   At year end, DSO’s were reduced to 62 days compared with 71 days one quarter ago.  DSO’s were 61 days at December 31, 2009.

 

The total outstanding balance on the senior credit facility at year end was $87 million, a reduction of $10 million from December 31, 2009.

 

Outlook

 

Management reaffirmed its long-term outlook and its expectations for 2011.

 

Long term outlook:

·                  Double-digit revenue growth

·                  Gross profit margin exceeding 30%

·                  Operating margin exceeding 8%

·                  Double-digit EPS growth

·                  Cash flow from operations to approximate net income

 

2011 expectations:

·                  Revenue growth exceeding 4%

·                  Gross profit margin exceeding 25.5%

·                  Operating margin exceeding 3.5%

·                  EPS exceeding $0.30

·                  Tax rate in the mid thirties

·                  Cash flow from operations of approximately $30 million

·                  Capital expenditures of approximately $20 million, mostly to fund IT infrastructure improvements and the India build-out

 

2011 Key Success Factors

·                  Higher quality deal wins in key verticals

·                  Improved DSO and cash collection

·                  Gross and operating margin improvement

·                  Expanded India delivery

·                  Enhanced operational execution

 

Peterschmidt noted, “Our goal is to improve financial performance utilizing a refined strategic approach, improved operational regimens, and increased as well as narrowed focus on higher margin, well developed offerings.”

 

Significant Charges

 

In the fourth quarter 2010, the Company incurred higher than usual bad debt expense and project write-off charges totaling $5.9 million after tax ($9.9 million pre-tax) or $0.09 per share.  The charges stemmed primarily from a small number of projects.

 

In the second quarter of 2010, the Company incurred two significant, primarily non-cash, charges.  The significant charges totaled $84.9 million after-tax ($118.1 million pre-tax), or $1.22 per share, of which $112.5 million were non-cash.  The items were:

·                  An $81.2 million after-tax ($112.0 million pre-tax), or $1.17 per share, non-cash charge for impairment of goodwill.  Testing of goodwill as of June 30, 2010, using discounted cash flow analysis supported by comparative market multiples to determine the estimated fair values, indicated that the book values of Federal and Custom Solutions divisions’ goodwill were impaired. The goodwill impairment charge for these divisions was primarily driven by adverse equity market conditions that caused a sustained depression in

 

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CIBER’s stock price and the financial performance of these divisions.  The charge reduces goodwill recorded in connection with acquisitions made in previous years and does not impact the Company’s business operations or cash flow.

·                  A $3.7 million after-tax ($6.1 million pre-tax), or $0.05 per share, charge for the departure of the former chief executive officer in April 2010 and the transition expenses related to the recruitment and hiring of the new chief executive officer, as well as expenses resulting from the former chairman of the board stepping down from that position.  This “executive change” charge includes separation payments, legal fees, search firm fees and other costs related to the transition and recruitment of the Company’s new chief executive officer.

 

Investor and Analyst Conference Call

 

CIBER President and Chief Executive Officer Dave Peterschmidt invites you to participate in a conference call today at 11:00 a.m. Eastern Time to discuss the Company’s financial results and outlook.

 

To participate in the conference call, dial 866-804-6928 (U.S.) or +1-857-350-1674 (outside the U.S.) ten minutes prior to the start of the call and provide the operator with the pass code 21202807.  This conference call will also be available via webcast at www.ciber.com/cbr.

 

A replay of the call and webcast will be available one hour after the call ends through March 22, 2011.  To access the telephone replay, dial 888-286-8010 (U.S.) or +1-617-801-6888 (outside the U.S.) and use the pass code 59391008.  The webcast replay will be available at www.ciber.com/cbr.

 

Non-GAAP Financial Information

 

CIBER presents a number of non-GAAP measurements because management believes that these metrics provide meaningful supplemental information in addition to the GAAP metrics and provide comparability and consistency to prior periods.  These non-GAAP measurements include revenue change constant currency adjusted; International revenue change adjusted for currency; fourth quarter operating income, operating income margin, net income and earnings per share excluding the fourth quarter bad debt expense and project write-offs; and full year operating income, operating income margin, net income and earnings per share excluding the fourth quarter bad debt expense and project write-offs and the second quarter goodwill impairment and executive transition charges.

 

Reconciliations of non-GAAP to comparable GAAP measures are available in the accompanying schedules and in the Investor Relations section of the Company’s website at www.ciber.com/cbr.

 

Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 relating to our operations, results of operations and other matters that are based on our current expectations, estimates, forecasts and projections. Words, such as “anticipate,” “believe,” “could,” “expect,” “estimate,” “intend,” “may,” “opportunity,” “plan,” “potential,” “project,” “should,” and “will” and similar expressions, are intended to identify forward-looking statements. For example, we make certain forward-looking statements regarding our current estimates for revenue and profitability for certain of our business units for 2011. These statements reflect a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by our forward-looking statements. These risks include, without limitation, risks that: (1) economic and political conditions, including regulatory or legislative action, adversely affect us or our clients’ businesses and levels of business activity; (2) we cannot expand and develop our services and solutions in response to changes in technology and client demand; (3) we cannot compete effectively in the highly competitive consulting, systems integration and technology and outsourcing markets; (4) our work in the government contracting environment exposes us to additional risks; (5) our clients may terminate their contracts with us or they may be unable or unwilling to pay us for our services, which may impact our accounting assumptions; (6) our outsourcing services subject us to operational and financial risk; (7) the type and level of technology spending by our clients may change; (8) we cannot maintain favorable pricing and utilization rates; (9) legal liability may result from solutions or services we provide; (10) we cannot anticipate the cost and complexity of performing our work or we are not able to control our costs; (11)

 

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our global operations are subject to complex risks, some of which might be beyond our control, including, but not limited to, fluctuations in foreign exchange rates; (12) we cannot balance our resources with client demand or hire sufficient employees with the required skills and background; (13) we may incur liability from our subcontractors’ or other third parties’ failure to deliver their project contributions on time or at all; (14) we cannot manage the organizational challenges associated with our size or our business strategy; (15) consolidation in the industries that we serve could adversely affect our business; (16) our ability to attract and retain business depends on our reputation in the marketplace; (17) our share price could fluctuate due to numerous factors, including variability in revenues, operating results and profitability; and/or (18) other factors discussed from time to time in the Company’s news releases and public statements, as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in our Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Most of these factors are beyond our ability to predict or control. Forward looking statements are not guarantees of performance and speak only as of the date they are made, and we undertake no obligation to publicly update any forward-looking statements in light of new information or future events. Readers are cautioned not to put undue reliance on forward-looking statements.

 

About CIBER, Inc.

 

CIBER, Inc. is a global information technology consulting, services and outsourcing company applying practical innovation through services and solutions that deliver tangible results for both commercial and government clients. Services include application development and management, ERP implementation, change management, project management, systems integration, infrastructure management and end-user computing, as well as strategic business and technology consulting. Founded in 1974 and headquartered in Greenwood Village, Colorado, CIBER has more than 8,500 employees and subcontractors and operates in 18 countries, serving clients in North America, Europe and Asia/Pacific. Annual revenue in 2010 was $1.1 billion. CIBER trades on the New York Stock exchange (NYSE: CBR), and is included in the Russell 2000 Index and the S&P Small Cap 600 Index. For more information, visit www.ciber.com.

 

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CIBER, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended
December 31,

 

Year Ended December 31,

 

 

 

2010

 

2009

 

2010

 

2009

 

REVENUES

 

 

 

 

 

 

 

 

 

Consulting services

 

$

263,642

 

$

249,609

 

$

1,025,056

 

$

992,779

 

Other revenue

 

13,736

 

12,645

 

46,287

 

44,921

 

Total revenues

 

277,378

 

262,254

 

1,071,343

 

1,037,700

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

Cost of consulting services

 

204,229

 

191,043

 

780,355

 

750,164

 

Cost of other revenue

 

8,134

 

7,686

 

28,368

 

28,243

 

Selling, general and administrative

 

70,232

 

55,764

 

249,341

 

225,643

 

Goodwill impairment

 

 

 

112,000

 

 

Amortization of intangible assets

 

1,068

 

1,520

 

4,429

 

5,891

 

Total operating expenses

 

283,663

 

256,013

 

1,174,493

 

1,009,941

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

(6,285

)

6,241

 

(103,150

)

27,759

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

423

 

350

 

617

 

994

 

Interest expense

 

(1,956

)

(1,822

)

(7,044

)

(6,180

)

Other income (expense), net

 

51

 

(446

)

65

 

338

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE INCOME TAXES

 

(7,767

)

4,323

 

(109,512

)

22,911

 

Income tax expense (benefit)

 

(4,475

)

1,772

 

(31,822

)

7,795

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS)

 

(3,292

)

2,551

 

(77,690

)

15,116

 

Net income (loss) attributable to noncontrolling interests

 

22

 

19

 

(530

)

158

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO CIBER, INC.

 

$

(3,314

)

$

2,532

 

$

(77,160

)

$

14,958

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.05

)

$

0.04

 

$

(1.11

)

$

0.22

 

Diluted

 

$

(0.05

)

$

0.04

 

$

(1.11

)

$

0.22

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

70,029

 

69,530

 

69,626

 

67,996

 

Diluted

 

70,029

 

69,707

 

69,626

 

68,107

 

 

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CIBER, Inc.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

December 31,
2010

 

December 31,
2009

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

69,329

 

$

67,424

 

Accounts receivable, net of allowances of $9,413 and $3,192, respectively

 

239,214

 

213,100

 

Prepaid expenses and other current assets

 

25,396

 

22,727

 

Deferred income taxes

 

11,373

 

6,627

 

Total current assets

 

345,312

 

309,878

 

 

 

 

 

 

 

Property and equipment, net of accumulated depreciation of $60,732 and $57,958, respectively

 

26,443

 

24,830

 

Goodwill

 

338,908

 

450,739

 

Other intangible assets, net

 

2,357

 

5,159

 

Other assets

 

9,344

 

12,650

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

722,364

 

$

803,256

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Liabilities:

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current portion of long-term debt

 

$

10,473

 

$

10,697

 

Accounts payable

 

49,835

 

33,981

 

Accrued compensation and related liabilities

 

72,918

 

65,747

 

Deferred revenue

 

21,194

 

17,634

 

Income taxes payable

 

9,760

 

10,402

 

Other accrued expenses and liabilities

 

48,768

 

34,563

 

Total current liabilities

 

212,948

 

173,024

 

 

 

 

 

 

 

Long-term debt

 

77,879

 

87,500

 

Deferred income taxes

 

6,159

 

36,486

 

Other long-term liabilities

 

5,878

 

 

Total liabilities

 

302,864

 

297,010

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

CIBER, Inc. shareholders’ equity:

 

 

 

 

 

Preferred stock, $0.01 par value, 1,000 shares authorized, no shares issued

 

 

 

Common stock, $0.01 par value, 100,000 shares authorized, 74,487 shares issued

 

745

 

745

 

Treasury stock, at cost, 4,363 and 5,005 shares, respectively

 

(25,003

)

(30,069

)

Additional paid-in capital

 

325,177

 

322,999

 

Retained earnings

 

118,113

 

199,668

 

Accumulated other comprehensive income

 

661

 

12,193

 

Total CIBER, Inc. shareholders’ equity

 

419,693

 

505,536

 

Noncontrolling interests

 

(193

)

710

 

Total equity

 

419,500

 

506,246

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

722,364

 

$

803,256

 

 

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CIBER, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Year Ended December 31,

 

 

 

2010

 

2009

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Consolidated net income (loss)

 

$

(77,690

)

$

15,116

 

Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities:

 

 

 

 

 

Goodwill impairment

 

112,000

 

 

Depreciation

 

11,673

 

11,719

 

Amortization of intangible assets

 

4,429

 

5,891

 

Deferred income tax expense (benefit)

 

(38,876

)

1,462

 

Provision for doubtful receivables

 

8,423

 

2,260

 

Share-based compensation expense

 

4,090

 

3,763

 

Other, net

 

4,332

 

2,329

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

Accounts receivable

 

(37,282

)

24,775

 

Other current and long-term assets

 

(1,580

)

(520

)

Accounts payable

 

16,564

 

(1,967

)

Accrued compensation and related liabilities

 

6,561

 

1,035

 

Other current and long-term liabilities

 

18,140

 

8,441

 

Income taxes payable/refundable

 

4,337

 

7,243

 

Net cash provided by operating activities

 

35,121

 

81,547

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

Acquisitions, net of cash acquired

 

(3,580

)

(4,330

)

Purchases of property and equipment, net

 

(13,990

)

(9,059

)

Net cash used in investing activities

 

(17,570

)

(13,389

)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

Borrowings on long-term debt

 

385,481

 

569,619

 

Payments on long-term debt

 

(396,618

)

(639,135

)

Sale of common stock, net of $194 of issuance costs

 

 

23,220

 

Employee stock purchases and options exercised

 

2,384

 

2,404

 

Purchases of treasury stock

 

(2,444

)

(4,998

)

Excess tax benefits from share-based compensation

 

61

 

 

Credit facility origination/amendment fees paid

 

(685

)

(3,471

)

Acquisition of noncontrolling interest

 

(1,558

)

 

Other, net

 

 

(222

)

Net cash used in financing activities

 

(13,379

)

(52,583

)

Effect of foreign exchange rate changes on cash and cash equivalents

 

(2,267

)

3,000

 

Net increase in cash and cash equivalents

 

1,905

 

18,575

 

Cash and cash equivalents, beginning of period

 

67,424

 

48,849

 

Cash and cash equivalents, end of period

 

$

69,329

 

$

67,424

 

 

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CIBER, Inc.

SUMMARY SEGMENT DATA

(Dollars in thousands)

(Unaudited)

 

Summary Segment Analysis

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

 

2010

 

2009

 

Change

 

2010

 

2009

 

Change

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$

112,559

 

$

96,580

 

17

%

$

385,155

 

$

349,834

 

10

%

Custom Solutions

 

91,248

 

86,070

 

6

%

368,682

 

372,168

 

(1

)%

U.S. ERP

 

29,225

 

31,857

 

(8

)%

133,662

 

126,443

 

6

%

Federal

 

26,162

 

29,736

 

(12

)%

117,545

 

117,613

 

(0

)%

IT Outsourcing

 

21,056

 

19,428

 

8

%

76,947

 

76,341

 

1

%

Total segment revenues

 

280,250

 

263,671

 

6

%

1,081,991

 

1,042,399

 

4

%

Corporate/Inter-segment

 

(2,872

)

(1,417

)

 

 

(10,648

)

(4,699

)

 

 

Total revenues

 

$

277,378

 

$

262,254

 

6

%

$

1,071,343

 

$

1,037,700

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$

7,268

 

$

6,110

 

19

%

$

19,842

 

$

20,107

 

(1

)%

Custom Solutions

 

4,349

 

3,621

 

20

%

25,002

 

24,125

 

4

%

U.S. ERP

 

(4,047

)

2,789

 

(245

)%

3,445

 

9,764

 

(65

)%

Federal

 

(2,054

)

1,190

 

(273

)%

1,979

 

5,994

 

(67

)%

IT Outsourcing

 

(700

)

(668

)

(5

)%

(1,407

)

(1,823

)

23

%

Total segment operating income

 

4,816

 

13,042

 

(63

)%

48,861

 

58,167

 

(16

)%

Corporate expenses

 

(10,033

)

(5,281

)

 

 

(35,582

)

(24,517

)

 

 

Goodwill impairment

 

 

 

 

 

(112,000

)

 

 

 

Amortization of intangible assets

 

(1,068

)

(1,520

)

 

 

(4,429

)

(5,891

)

 

 

Total operating income (loss)

 

$

(6,285

)

$

6,241

 

 

 

$

(103,150

)

$

27,759

 

 

 

 

Segments as Percent of Total Segment Revenue and Total Segment Operating Income

(excluding Corporate/Inter-segment and corporate expenses, goodwill impairment and amortization)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

 

2010

 

2009

 

2010

 

2009

 

Revenues:

 

 

 

 

 

 

 

 

 

International

 

40

%

37

%

36

%

34

%

Custom Solutions

 

33

%

33

%

34

%

36

%

U.S. ERP

 

10

%

12

%

12

%

12

%

Federal

 

9

%

11

%

11

%

11

%

IT Outsourcing

 

8

%

7

%

7

%

7

%

Total segment revenues

 

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

International

 

151

%

47

%

41

%

35

%

Custom Solutions

 

90

%

28

%

51

%

41

%

U.S. ERP

 

(84

)%

21

%

7

%

17

%

Federal

 

(43

)%

9

%

4

%

10

%

IT Outsourcing

 

(14

)%

(5

)%

(3

)%

(3

)%

Total segment operating income

 

100

%

100

%

100

%

100

%

 

Segment Operating Margins

(excluding corporate expenses, goodwill impairment and amortization)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

 

2010

 

2009

 

2010

 

2009

 

Operating margin:

 

 

 

 

 

 

 

 

 

International

 

6

%

6

%

5

%

6

%

Custom Solutions

 

5

%

4

%

7

%

6

%

U.S. ERP

 

(14

)%

9

%

3

%

8

%

Federal

 

(8

)%

4

%

2

%

5

%

IT Outsourcing

 

(3

)%

(3

)%

(2

)%

(2

)%

Total segment operating income

 

2

%

5

%

5

%

6

%

 

9



 

CIBER, Inc.

NON-GAAP FINANCIAL INFORMATION

(Dollars in millions, except per share amounts)

(Unaudited)

 

CIBER reports its financial results in accordance with generally accepted accounting principles (“GAAP”).  However, management believes that certain non-GAAP financial measures used in managing our business may provide users of this financial information with additional meaningful comparisons between current results and prior reported results.  Certain of the information set forth in this press release constitutes non-GAAP financial measures within the meaning of Regulation G adopted by the Securities and Exchange Commission.  We have presented below a reconciliation of these measures to the most directly comparable GAAP financial measure.  The presentation of this additional information is not meant to be considered in isolation or as a substitute for comparable amounts determined in accordance with GAAP in the United States.

 

Components of Revenue

 

 

 

Three Months Ended December 31, 2010

 

 

 

Constant Currency
Revenue Growth

 

Foreign Exchange
Impact

 

GAAP Reported
 Revenue Growth

 

Revenues:

 

 

 

 

 

 

 

Consolidated

 

8

%

(2

)%

6

%

 

 

 

 

 

 

 

 

International

 

24

%

(7

)%

17

%

 

 

 

Year Ended December 31, 2010

 

 

 

Constant Currency
Revenue Growth

 

Foreign Exchange
Impact

 

GAAP Reported
Revenue Growth

 

Revenues:

 

 

 

 

 

 

 

Consolidated

 

4

%

(1

)%

3

%

 

 

 

 

 

 

 

 

International

 

13

%

(3

)%

10

%

 

10



 

CIBER, Inc.

NON-GAAP FINANCIAL INFORMATION (CONTINUED)

(Dollars in millions, except per share amounts)

(Unaudited)

 

Operating Income Excluding Bad Debt Expense and Project Write-Off Charges, Goodwill Impairment and Executive Transition Charges

 

 

 

Three Months Ended

 

Year Ended

 

 

 

December 31, 2010

 

December 31, 2010

 

 

 

 

 

 

 

GAAP operating income (loss)

 

$

(6.3

)

$

(103.2

)

Goodwill impairment and executive transition, pre-tax

 

 

118.1

 

Bad debt expense and project write-offs, pre-tax

 

9.9

 

9.9

 

Operating income, excluding bad debt expense, project write-offs, goodwill impairment and executive transition

 

$

3.6

 

$

24.8

 

 

 

 

 

 

 

GAAP operating margin

 

(2.3

)%

(9.6

)%

 

 

 

 

 

 

Operating margin, excluding bad debt expense, project write-offs, goodwill impairment and executive transition

 

1.3

%

2.3

%

 

Net Income Excluding Bad Debt Expense and Project Write-Off Charges, Goodwill Impairment and Executive Transition Charges

 

 

 

Three Months Ended

 

Year Ended

 

 

 

December 31, 2010

 

December 31, 2010

 

 

 

 

 

 

 

GAAP net income (loss)

 

$

(3.3

)

$

(77.2

)

Goodwill impairment and executive transition, after tax

 

 

84.9

 

Bad debt expense and project write-offs, after tax

 

5.9

 

5.9

 

Net income, excluding bad debt expense, project write-offs, goodwill impairment and executive transition

 

$

2.6

 

$

13.6

 

 

Earnings (Loss) Per Share Excluding Bad Debt Expense and Project Write-Off Charges, Goodwill Impairment and Executive Transition Charges

 

 

 

Three Months Ended

 

Year Ended

 

 

 

December 31, 2010

 

December 31, 2010

 

 

 

 

 

 

 

GAAP earnings (loss) per share

 

$

(0.05

)

$

(1.11

)

Goodwill impairment and executive transition

 

 

1.22

 

Bad debt expense and project write-offs

 

0.09

 

0.09

 

Earnings per share, excluding bad debt expense, project write-offs, goodwill impairment and executive transition

 

$

0.04

 

$

0.20

 

 

11