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8-K - 8-K - CMTSU Liquidation, Inc.a12-26052_18k.htm

Exhibit 99.1

 

GRAPHIC

 

Contact:

Gary Kohn

Robin Caputo

 

Investor Relations

Media Relations

 

303-625-5256

303-267-3876

 

gkohn@ciber.com

rcaputo@ciber.com

 

CIBER REPORTS THIRD QUARTER 2012 RESULTS

ANNOUNCES COST-REDUCTION PLAN TO SAVE $7 MILLION IN 2013

ACTION TO DELIVER 70 BASIS POINTS TO 2013 OPERATING MARGIN

 

GREENWOOD VILLAGE, Colo., Nov. 6, 2012— Ciber, Inc. (NYSE: CBR), a global information technology consulting, services and outsourcing company, today reported results for the third quarter of 2012.

 

Highlights From Continuing Operations for the Third Quarter 2012 Include:

 

·                  Revenue of $215.8 million, a 3% decrease, up 2% in constant currency

·                  Operating income of $4.6 million

·                  Net income from continuing operations of $0.6 million, or $0.01 per share

·                  Cash on hand at quarter end of $33.0 million, and bank debt outstanding of $41.8 million

 

President and Chief Executive Officer Dave Peterschmidt said, “Revenue in constant currency was up overall.  Within the total picture of the third quarter, we are pleased to see a healthy operating margin in North America, bringing 7.2% to the bottom line, which is the best performance this year.  This strong margin is a direct result of the operational improvements and cost disciplines we put in place in North America, and we are methodically and systematically implementing these same improvements in our International business, with the expectation of similar results.”

 

Peterschmidt continued, “One necessary component in achieving our goal of improved margin has been to significantly reduce our cost structure.  In the fourth quarter we are taking action in several areas including consolidating 15 global locations where we no longer require stand-alone offices, and reducing our workforce in specific markets.  Savings from these actions are expected to be approximately $7 million in 2013, and $11 million in 2014 and each year thereafter.”

 

Claude Pumilia, Chief Financial Officer, commented, “We are committed to streamlining Ciber, while aligning our resources with the most promising opportunities.   As planned, we have lowered SG&A in absolute dollars and as a percentage of revenue, thus gaining the leverage that is essential to margin growth.  We are now taking the additional step of these restructuring actions to drive an even more meaningful expansion in year-over-year operating margin.  Our objective remains to lower our overall cost structure, improve operating procedures, gain efficiencies in delivery, while increasing the quality of our client-facing services.”

 

Key Financial Details of the Restructuring Action Include:

 

·                  Operating cost savings of approximately $7 million in 2013, ramping quarterly as the year progresses

·                  Operating cost savings of approximately $11 million in 2014, and annually each year thereafter

·                  A total charge estimated to be $14 million ($4 million of which is non-cash) or $0.16 per share

·                  Of the $14 million total charge, $9 million or $0.11 per share is expected to be incurred in the fourth quarter of 2012, and $5 million or $0.05 per share is anticipated to be incurred in the first quarter of 2013

 

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Market Highlights in the Third Quarter Include:

 

·                  A major California university chose Ciber to implement and manage its ERP solution

·                  An international food processing and distribution corporation chose Ciber to integrate its data management and messaging environments

·                  The largest energy company in the Netherlands selected Ciber to implement an innovative SAP mobility project for mobile asset management and field service

 

Third Quarter Financial Results from Continuing Operations

 

Revenue of $215.8 million decreased 3%, or increased 2% in constant currency, compared with last year’s third quarter.  Sequentially from the second quarter of 2012, revenue decreased 2% or 1% in constant currency.

 

Gross margin for the third quarter was 25.3% compared with 26.3% in last year’s third quarter.  Impacting gross margin were lower international utilization, and reduced pricing on additional work within a large North America account.

 

Selling, general and administrative expenses (SG&A) in the quarter were $49.8 million, a $2.7 million or 5% improvement from the third quarter of last year, and a $3.6 million or 7% improvement over the second quarter of this year.  Cost containment and efficiency initiatives undertaken by Ciber have driven the significantly improved SG&A cost base.  This improved cost structure, together with the additional targeted savings from the restructuring activities is expected to contribute meaningfully to operating margin expansion in 2013 and beyond.

 

Third quarter 2012 operating income from continuing operations of $4.6 million yielded an operating margin of 2.1%.  In the third quarter of 2011, operating income and operating margin were $6.0 million and 2.7%, respectively.

 

Net income from continuing operations for the third quarter 2012 was $0.6 million or $0.01 per share.  Last year’s third quarter net income was $1.7 million, or $0.02 per share.

 

Revenue in the International division was $106.8 million for the third quarter 2012, representing a decline of 6%, or a 3% increase in constant currency year-over-year.  Compared to the second quarter of this year, revenue was down 3% or 1% in constant currency.  Revenue performance was led by Germany, Norway, and the U.K., which combined comprised 40% of the International division’s revenue.  Offsetting the strength in these countries was lower year-over-year revenue from the division’s largest client and weakness in other geographies.    Operating margin of 4% was down sequentially and from the third quarter 2011.  SG&A expenses were lower than last year’s third quarter as well as the second quarter of this year.  However, gross margin was lower than last year’s third quarter, and the second quarter 2012, driven mostly by lower than expected utilization rates.

 

The North American division posted revenue of $109.3 million, which was flat compared with the third quarter 2011 and down 1% sequentially.  Importantly, operating margin was strong at 7.2%.  The strong operating margin was driven by SG&A leverage that offset a gross margin that was lower than last year’s third quarter.

 

Capital Deployment and Liquidity

 

Ciber’s cash balance at the end of the third quarter 2012 was $33.0 million.  The outstanding balance on the credit facility was $41.8 million.

 

Cash flow used in operating activities (continuing operations) year-to-date through September 30 was $33.4 million driven mostly by a $32.1 million increase in accounts receivables.  Seasonality exists in cash flows with stronger cash flow occurring during the last quarter of the year.  Days Sales Outstanding (DSO) were 66 days.  Capital expenditures totaled $2.6 million for the first nine months.

 

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Continuing Operations and Segment Realignment

 

Ciber made the strategic decision to sell its Federal division and certain assets of its Global IT Outsourcing business in order to focus on its core offerings.  The Company completed the Federal division sale on March 9, 2012, and completed the Global ITO asset sale on October 15, 2012.  As a result of these sales, the Federal division and the portion of the Global ITO business that was sold are presented as discontinued operations.  Additionally, for 2012, Ciber combined the portion of the operations of its IT Outsourcing division that it retained with the remaining two divisions: International and North America.  The discussion of the Company’s results includes comparison to 2011 as if the new reporting segments were in place that year.  Quarterly results for 2011 under the new reporting segments and with the Federal division and the Global ITO business as discontinued operations are provided in the tables of this earnings release and are available at www.ciber.com.

 

Restructuring

 

Ciber anticipates recording $9 million ($0.11 per share) of restructuring charges in the fourth quarter of 2012 and $5 million ($0.05 per share) of restructuring charges in the first quarter of 2013.  The restructuring charges primarily relate to the consolidation of our real estate footprint, as well as organizational changes designed to simplify business processes, move decision-making closer to the marketplace and create operating efficiencies. The Company expects to realize pre-tax savings from the initiatives of approximately $7 million in 2013, and expects $11 million in annualized savings beginning in 2014.  Restructuring expenses are not reflected in segment operating results, and will be shown separately on the income statement.   Restructuring expenses include expenses related to personnel including severance and related benefits, and facility closures including fixed asset write-offs.

 

Investor and Analyst Conference Call

 

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

 

The conference call and audiocast of the conference call will be available to the public.  The audiocast will be available at www.ciber.com/us/index.cfm/company/investor-relations .  To participate in the conference call, dial 866-271-5140 (U.S.) or +1-617-213-8893 (outside the U.S.) ten minutes prior to the start of the call and provide the operator with the pass code 20338095.

 

A replay of the call and audiocast will be available one hour after the call ends through Dec. 6, 2012.  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 56968896.  The audiocast replay will be available at www.ciber.com/us/index.cfm/company/investor-relations.

 

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 year-over-year and sequentially adjusted for currency, and international revenue change year-over-year and sequentially adjusted for currency. Reconciliations of non-GAAP to comparable GAAP measures are available in the body of this release as well as the accompanying schedules.   These reconciliations may also be found 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 these forward-looking statements.  These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict.  Forward-looking

 

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statements are based on assumptions as to future events that may not prove to be accurate.  Risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by our forward-looking statements include, but are not limited to, risks that: our results of operations may be adversely affected if we are unable to execute on the key elements of our strategic plan; our results of operations can be adversely affected by economic conditions and the impacts of economic conditions on our clients’ operations and technology spending; termination of a contract by a significant client and/or cancellation with short notice could adversely affect our results of operations; the IT services industry, in the U.S. and internationally, is highly competitive, with increased focus on offshore capability and we may not be able to compete effectively; our new credit agreement, an asset-based and term loan facility, limits our operational and financial flexibility and we also face the need to comply with financial covenants in our credit agreement; possible future consideration on the sale of certain contracts and assets associated with our information technology outsourcing practice may not be realized; possible post-closing adjustments to the purchase price on the sale of our former Federal division could reduce the purchase price and cause us to recognize an additional loss on that sale; we may experience declines in revenue and profitability if we do not accurately estimate the cost of engagements conducted on a fixed-price basis; our business could be adversely affected if our clients are not satisfied with our services, and we could face damage to our professional reputation and/or legal liability; if we are not able to anticipate and keep pace with rapid changes in technology, our business will be negatively affected; our international operations are susceptible to different financial and operational risks than our domestic operations; we intend to increase our presence in India, which may expose us to operational risks; our revenues, operating results and profitability will vary from quarter to quarter, which may impact our ability to comply with our debt covenants, and may also result in increased volatility in the price of our stock; a data security or privacy breach could adversely affect our business; if we are unable to collect our receivables, our results of operations and cash flows could be adversely affected; our future success depends on our ability to continue to retain and attract qualified sales, delivery and technical employees; we could incur additional losses due to further impairment in the carrying value of our goodwill; we depend on contracts with various public sector agencies for a significant portion of our revenue and, if the spending policies or budget priorities of these agencies change, we could lose revenue; unfavorable government audits could require us to adjust previously reported operating results, to forego anticipated revenue and subject us to penalties and sanctions; our services or solutions could infringe upon the intellectual property rights of others, or we might lose our ability to utilize rights we claim in intellectual property or the intellectual property of others; we have adopted anti-takeover defenses that could make it difficult for another company to acquire control of Ciber or limit the price investors might be willing to pay for our stock, thus affecting the market price of our securities.  For a more detailed discussion of these factors, see the information under the “Risk Factors” heading in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, and our Annual Report on Form 10-K for the year ended December 31, 2011, and other documents filed with or furnished to the Securities and Exchange Commission.  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 is a global IT consulting company with nearly 6,000 consultants and contractors in North America, Europe and Asia/Pacific, and approximately $1 billion in annual revenue. Client focused and results driven, Ciber partners with organizations to develop technology strategies and solutions that deliver tangible business value. Founded in 1974, the company trades on the New York Stock Exchange (NYSE: CBR). 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 
September 30,

 

Nine Months Ended
September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

REVENUES

 

 

 

 

 

 

 

 

 

Consulting services

 

$

203,117

 

$

212,543

 

$

621,613

 

$

647,446

 

Other revenue

 

12,681

 

10,068

 

37,536

 

32,613

 

Total revenues

 

215,798

 

222,611

 

659,149

 

680,059

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

Cost of consulting services

 

153,716

 

157,962

 

465,795

 

492,348

 

Cost of other revenue

 

7,529

 

6,047

 

23,626

 

18,138

 

Selling, general and administrative

 

49,781

 

52,439

 

152,080

 

164,974

 

Goodwill impairment

 

 

 

 

16,300

 

Amortization of intangible assets

 

157

 

131

 

482

 

1,445

 

Total operating expenses

 

211,183

 

216,579

 

641,983

 

693,205

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS

 

4,615

 

6,032

 

17,166

 

(13,146

)

 

 

 

 

 

 

 

 

 

 

Interest income

 

149

 

203

 

572

 

407

 

Interest expense

 

(1,096

)

(2,005

)

(5,163

)

(5,372

)

Other income (expense), net

 

(449

)

469

 

(335

)

(3,005

)

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

3,219

 

4,699

 

12,240

 

(21,116

)

Income tax expense

 

2,638

 

2,960

 

9,279

 

31,194

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) FROM CONTINUING OPERATIONS

 

581

 

1,739

 

2,961

 

(52,310

)

Income (loss) from discontinued operations, net of income tax

 

(9,896

)

1,425

 

(10,948

)

1,405

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS)

 

(9,315

)

3,164

 

(7,987

)

(50,905

)

Net income attributable to noncontrolling interests

 

134

 

24

 

400

 

205

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO CIBER, INC.

 

$

(9,449

)

$

3,140

 

$

(8,387

)

$

(51,110

)

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per share attributable to Ciber, Inc.:

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.01

 

$

0.02

 

$

0.04

 

$

(0.73

)

Discontinued operations

 

(0.14

)

0.02

 

(0.15

)

0.02

 

Basic and diluted earnings (loss) per share attributable to Ciber, Inc.

 

$

(0.13

)

$

0.04

 

$

(0.11

)

$

(0.71

)

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

73,276

 

72,209

 

73,008

 

71,613

 

Diluted

 

73,647

 

72,609

 

73,498

 

71,613

 

 



 

Ciber, Inc.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

September 30,
2012

 

December 31,
2011

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

33,028

 

$

65,567

 

Accounts receivable, net of allowances of $1,271 and $1,422, respectively

 

215,762

 

182,359

 

Prepaid expenses and other current assets

 

28,033

 

25,041

 

Deferred income taxes

 

2,577

 

3,302

 

Current assets of discontinued operations

 

 

21,041

 

Total current assets

 

279,400

 

297,310

 

 

 

 

 

 

 

Property and equipment, net of accumulated depreciation of $48,795 and $43,617, respectively

 

14,444

 

17,827

 

Goodwill

 

274,837

 

275,504

 

Other intangible assets, net

 

162

 

649

 

Other assets

 

9,522

 

5,239

 

Long-term assets of discontinued operations

 

3,350

 

28,541

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

581,715

 

$

625,070

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Liabilities:

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current portion of long-term debt

 

$

5,066

 

$

25,571

 

Accounts payable

 

27,592

 

35,112

 

Accrued compensation and related liabilities

 

58,866

 

60,124

 

Deferred revenue

 

21,146

 

19,876

 

Income taxes payable

 

6,810

 

8,613

 

Other accrued expenses and liabilities

 

43,589

 

45,454

 

Current liabilities of discontinued operations

 

 

9,742

 

Total current liabilities

 

163,069

 

204,492

 

 

 

 

 

 

 

Long-term debt

 

36,825

 

41,380

 

Deferred income taxes

 

21,216

 

15,462

 

Other long-term liabilities

 

906

 

6,729

 

Total liabilities

 

222,016

 

268,063

 

 

 

 

 

 

 

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, 1,063 and 1,919 shares, respectively

 

(6,090

)

(10,998

)

Additional paid-in capital

 

334,799

 

330,088

 

Retained earnings

 

32,199

 

44,337

 

Accumulated other comprehensive loss

 

(2,195

)

(7,006

)

Total Ciber, Inc. shareholders’ equity

 

359,458

 

357,166

 

Noncontrolling interests

 

241

 

(159

)

Total equity

 

359,699

 

357,007

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

581,715

 

$

625,070

 

 



 

Ciber, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2012

 

2011

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Consolidated net loss

 

$

(7,987

)

$

(50,905

)

 

 

 

 

 

 

Adjustments to reconcile consolidated net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

 

 

 

Loss (income) from discontinued operations

 

10,948

 

(1,405

)

Goodwill impairment

 

 

16,300

 

Depreciation

 

5,816

 

6,104

 

Amortization of intangible assets

 

482

 

1,445

 

Deferred income tax expense

 

3,699

 

25,549

 

Provision for (recovery on) doubtful receivables

 

(139

)

345

 

Share-based compensation expense

 

4,534

 

2,975

 

Change in fair value of acquisition-related contingent consideration

 

 

3,222

 

Amortization of debt costs

 

2,385

 

1,191

 

Other, net

 

630

 

(481

)

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

Accounts receivable

 

(32,117

)

20,138

 

Other current and long-term assets

 

(3,389

)

(5,618

)

Accounts payable

 

(7,773

)

(19,115

)

Accrued compensation and related liabilities

 

(1,602

)

(6,078

)

Other current and long-term liabilities

 

(7,216

)

(8,640

)

Income taxes payable/refundable

 

(1,631

)

1,008

 

Cash used in operating activities — continuing operations

 

(33,360

)

(13,965

)

Cash provided by (used in) operating activities — discontinued operations

 

(1,758

)

4,853

 

Cash used in operating activities

 

(35,118

)

(9,112

)

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

Acquisitions, net of cash acquired

 

 

(895

)

Purchases of property and equipment, net

 

(2,588

)

(6,417

)

Cash used in investing activities — continuing operations

 

(2,588

)

(7,312

)

Cash provided by (used in) investing activities — discontinued operations

 

30,090

 

(2,100

)

Cash provided by (used in) investing activities

 

27,502

 

(9,412

)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

Borrowings on long-term debt

 

269,633

 

278,138

 

Payments on long-term debt

 

(294,698

)

(285,274

)

Employee stock purchases and options exercised

 

1,157

 

7,025

 

Credit facility fees paid

 

(3,547

)

(808

)

Cash used in financing activities — continuing operations

 

(27,455

)

(919

)

Effect of foreign exchange rate changes on cash and cash equivalents

 

2,532

 

2,917

 

Net decrease in cash and cash equivalents

 

(32,539

)

(16,526

)

Cash and cash equivalents, beginning of period

 

65,567

 

69,329

 

Cash and cash equivalents, end of period

 

$

33,028

 

$

52,803

 

 



 

Ciber, Inc.

SUMMARY SEGMENT DATA

(Dollars in thousands)

(Unaudited)

 

Summary Segment Analysis

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2012

 

2011

 

Change

 

2012

 

2011

 

Change

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$

106,809

 

$

113,956

 

(6

)%

$

334,829

 

$

356,117

 

(6

)%

North America

 

109,346

 

109,003

 

%

325,319

 

323,953

 

%

Other

 

802

 

976

 

 

n/m

2,309

 

2,606

 

 

n/m

Total segment revenues

 

216,957

 

223,935

 

(3

)%

662,457

 

682,676

 

(3

)%

Inter-segment

 

(1,159

)

(1,324

)

 

n/m

(3,308

)

(2,617

)

 

n/m

Total revenues

 

$

215,798

 

$

222,611

 

(3

)%

$

659,149

 

$

680,059

 

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$

4,208

 

$

5,295

 

(21

)%

$

17,923

 

$

20,318

 

(12

)%

North America

 

7,825

 

8,242

 

(5

)%

22,443

 

6,772

 

231

%

Other

 

196

 

139

 

 

n/m

326

 

364

 

 

n/m

Total segment operating income

 

12,229

 

13,676

 

(11

)%

40,692

 

27,454

 

48

%

Corporate expenses

 

(7,517

)

(7,243

)

(4

)%

(22,482

)

(21,887

)

(3

)%

Unallocated benefits (expenses) of discontinued operations

 

60

 

(270

)

 

n/m

(562

)

(968

)

 

n/m

Earnings before interest, taxes and amortization

 

4,772

 

6,163

 

(23

)%

17,648

 

4,599

 

284

%

Goodwill impairment

 

 

 

%

 

(16,300

)

100

%

Amortization of intangible assets

 

(157

)

(131

)

(20

)%

(482

)

(1,445

)

67

%

Total operating income (loss) from continuing operations

 

$

4,615

 

$

6,032

 

(24

)%

$

17,166

 

$

(13,146

)

231

%

 


n/m = not meaningful

 

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

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

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

Revenues:

 

 

 

 

 

 

 

 

 

International

 

49

%

51

%

51

%

52

%

North America

 

51

%

49

%

49

%

48

%

Other

 

%

%

%

%

Total segment revenues

 

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

International

 

34

%

39

%

44

%

74

%

North America

 

64

%

60

%

55

%

25

%

Other

 

2

%

1

%

1

%

1

%

Total segment operating income

 

100

%

100

%

100

%

100

%

 

Segment Operating Margins

(excluding corporate expenses, goodwill impairment and amortization)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

Operating margin:

 

 

 

 

 

 

 

 

 

International

 

4

%

5

%

5

%

6

%

North America

 

7

%

8

%

7

%

2

%

Other

 

24

%

14

%

14

%

14

%

Total segment operating margin

 

6

%

6

%

6

%

4

%

 



 

CIBER, Inc.

QUARTERLY RESULTS OF OPERATIONS

(Dollars in thousands)

(Unaudited)

 

 

 

Sept. 30, 
2012

 

June 30, 
2012

 

Mar. 31, 
2012

 

Dec. 31, 
2011

 

Sept. 30, 
2011

 

June 30, 
2011

 

Mar. 31, 
2011

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consulting services

 

$

203,117

 

$

207,699

 

$

210,797

 

$

208,667

 

$

212,543

 

$

209,726

 

$

225,177

 

Other revenue

 

12,681

 

12,514

 

12,341

 

12,330

 

10,068

 

11,565

 

10,980

 

Total revenues

 

215,798

 

220,213

 

223,138

 

220,997

 

222,611

 

221,291

 

236,157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of consulting services

 

153,716

 

153,745

 

158,334

 

154,605

 

157,962

 

167,831

 

166,555

 

Cost of other revenue

 

7,529

 

7,843

 

8,254

 

7,246

 

6,047

 

5,913

 

6,178

 

Selling, general and administrative

 

49,781

 

53,420

 

48,879

 

54,749

 

52,439

 

57,033

 

55,502

 

Goodwill impairment

 

 

 

 

 

 

16,300

 

 

Amortization of intangible assets

 

157

 

161

 

164

 

89

 

131

 

682

 

632

 

Total operating expenses

 

211,183

 

215,169

 

215,631

 

216,689

 

216,579

 

247,759

 

228,867

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS

 

4,615

 

5,044

 

7,507

 

4,308

 

6,032

 

(26,468

)

7,290

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

149

 

226

 

197

 

580

 

203

 

148

 

56

 

Interest expense

 

(1,096

)

(2,238

)

(1,829

)

(2,526

)

(2,005

)

(1,875

)

(1,492

)

Other income (expense), net

 

(449

)

695

 

(581

)

481

 

469

 

(2,689

)

(785

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

3,219

 

3,727

 

5,294

 

2,843

 

4,699

 

(30,884

)

5,069

 

Income tax expense

 

2,638

 

2,860

 

3,781

 

1,256

 

2,960

 

27,139

 

1,095

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

581

 

867

 

1,513

 

1,587

 

1,739

 

(58,023

)

3,974

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations, net of income tax

 

(9,896

)

(742

)

(310

)

(17,914

)

1,425

 

(242

)

222

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS)

 

(9,315

)

125

 

1,203

 

(16,327

)

3,164

 

(58,265

)

4,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to noncontrolling interests

 

134

 

206

 

60

 

(176

)

24

 

108

 

73

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO CIBER, INC.

 

$

(9,449

)

$

(81

)

$

1,143

 

$

(16,151

)

$

3,140

 

$

(58,373

)

$

4,123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per share attributable to CIBER, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.01

 

$

0.01

 

$

0.02

 

$

0.02

 

$

0.02

 

$

(0.81

)

$

0.06

 

Discontinued operations

 

(0.14

)

(0.01

)

 

(0.24

)

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per share attributable to CIBER, Inc.

 

$

(0.13

)

$

 

$

0.02

 

$

(0.22

)

$

0.04

 

$

(0.81

)

$

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

73,276

 

73,013

 

72,735

 

72,484

 

72,209

 

71,695

 

70,936

 

Diluted

 

73,647

 

73,504

 

73,342

 

72,788

 

72,609

 

71,695

 

72,091

 

 



 

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 September 30, 2012

 

 

 

Constant Currency
Revenue Increase
(Decrease)

 

Foreign Exchange
Impact

 

GAAP Reported
Revenue Increase
(Decrease)

 

Revenues:

 

 

 

 

 

 

 

Consolidated

 

1.8

%

(4.9

)%

(3.1

)%

 

 

 

 

 

 

 

 

International

 

3.3

%

(9.6

)%

(6.3

)%

 

 

 

Sequential Three Months Ended September 30, 2012

 

 

 

Constant Currency
Revenue Increase
(Decrease)

 

Foreign Exchange
Impact

 

GAAP Reported
Revenue Increase
(Decrease)

 

Revenues:

 

 

 

 

 

 

 

Consolidated

 

(1.3

)%

(0.7

)%

(2.0

)%

 

 

 

 

 

 

 

 

International

 

(1.3

)%

(1.5

)%

(2.8

)%