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8-K - 8-K - CMTSU Liquidation, Inc.a13-17383_18k.htm

Exhibit 99.1

 

GRAPHIC

 

Ciber, Inc.

6363 S. Fiddler’s Green Circle, Suite 1400

Greenwood Village, CO  80111

www.ciber.com

 

CIBER REPORTS SECOND QUARTER 2013 RESULTS

Income from continuing operations before restructuring charges

grows to $0.04 per diluted share

 

GREENWOOD VILLAGE, Colo., July 30, 2013— Ciber, Inc. (NYSE: CBR), a leading global information technology consulting, services and outsourcing company, today reported results for the second quarter of 2013.

 

Highlights From Continuing Operations for the Second Quarter 2013 Include:

 

·                  Revenue of $220.4 million, a 2% increase, up 1% in constant currency

·                  Operating income of $5.6 million, before $0.6 million charge associated with previously announced restructuring program, representing an operating income margin of 2.6%

·                  Net income from continuing operations of $2.9 million, or $3.4 million before restructuring charges, or $0.04 per diluted share

 

President and Chief Executive Officer Dave Peterschmidt said, “In the second quarter Ciber demonstrated its disciplined approach to the business, with ongoing progress on many fronts, including encouraging signs of improvement in our International operations, and a steady North America business in a continuing uncertain macroeconomic environment.  Second-quarter consolidated revenue, operating income and EPS increased from year ago levels, demonstrating our steady progress, especially on the bottom line.  There is still work to be done, particularly in driving consistent growth and margin improvement, and we believe we have assembled the building blocks to move this company forward. We are focused on continuing margin improvement with growth and greater scale.”

 

Claude Pumilia, Chief Financial Officer, commented, “Because of the efficiencies we are realizing from our restructuring, including the program we announced today, and improvements we continue to make in our delivery capability, we are positioned for further margin improvement in 2013 and beyond.  We have significantly improved our conversion of operating income to earnings.  We have enhanced our financial flexibility, reducing our long-term debt and corresponding interest expense, which has benefited our cash flow.”

 

Market Highlights in the Second Quarter Include:

 

·                  Ciber in the U.K. secured a multi-million dollar agreement with a leading European supplier of recycled packaging, and Ciber will deliver a complex program to consolidate and rationalize the group’s SAP systems. The agreement also includes a five-year managed services contract.

 

·                  A Southern U.S. university system, with three institutions serving nearly 40,000 students, selected Ciber to manage an upgrade to Oracle’s latest Version 9.2 for human resources, payroll, and financial management. Ciber also will split the Human Capital Management and Campus Solutions database and implement Ciber’s new Admissions system, as well as Oracle’s Talent Acquisition Management, Candidate Gateway, ePerformance and eSettlements modules.

 



 

·                  A large, Japan-based retail chain with more than 3,000 stores in 24 countries chose Ciber to support their expansion into the Australian market. Ciber will be implementing SAP Retail for merchandising, financials, logistics and reporting to facilitate the client’s goal of building a larger store network across Australia over the next three years.

 

·                  A large developer of e-commerce and direct response businesses for sports organizations selected Ciber to provide significant enhancements to the IBM POWER server environment that supports its supply chain and fulfillment operations.

 

·                  A publisher of health-related magazines for some 38 million readers chose Ciber to implement a new SAP ERP solution and provide ongoing managed services. Ciber is sole supplier for this implementation.

 

·                  One of the world’s largest automobile manufacturers expanded Ciber’s presence in its IT shop from nine to 77 professionals. The increase in staffing levels and contract duration follows successful completion of a preliminary engagement.

 

Second-Quarter Financial Results from Continuing Operations

 

Revenue of $220.4 million increased 2%, or 1% in constant currency, compared with last year’s second quarter.  Sequentially from the first quarter of 2013, revenue was up slightly in U.S. dollars, and up 1% in constant currency, as growth in International revenues offset declines in North America.

 

Gross margin for the second quarter was 25.4%, compared with 26.6% in last year’s second quarter and 25.1% in the first quarter of 2013. The year-over-year gross margin decline is due to decreased delivery efficiency in our International business as well as pricing pressure in both North America and International.  The slight increase in sequential gross margin was driven by improved delivery efficiency in International.

 

Selling, general and administrative expenses (SG&A) in the second quarter were $50.4 million, a $2.3 million or 4% decrease from the second quarter of last year, but a slight increase sequentially. This sequential increase was driven by an increase in stock compensation expense and legal fees at Corporate.

 

Second quarter 2013 operating income from continuing operations of $5.6 million, before restructuring charges of $0.6 million, yielded an operating margin of 2.6%, compared to 2.2% in the prior-year second quarter, and 2.4% compared to the first quarter of 2013. Improved operating margins in both North America and International, as well as a decrease in SG&A costs in North America, drove the increase.

 

Net income from continuing operations, before restructuring charges, for the second quarter of 2013 was $3.4 million, or $0.04 per diluted share. Including restructuring, net income from continuing operations was $2.9 million in the quarter.  Last year’s second quarter net income from continuing operations was $422 thousand, or break-even on a per diluted share basis.  For the first quarter of 2013, net income from continuing operations, before restructuring charges, was $1.8 million, or $0.03 per diluted share.

 

Revenue in the International division was $113.9 million for the second quarter of 2013, which was up nearly 8% compared to the year-ago second quarter, and up 6% in constant currency. Compared to the first quarter of 2013, International revenue was up 1%, and nearly 3% in constant currency. In a continuing soft European economic environment, revenue performance year-over-year was led by Ciber’s businesses in Norway and the UK, partially offset by continued challenges in the Netherlands. Operating margin of 5.3% was flat compared to the second quarter of 2012, and up 90 basis points from the first quarter of 2013 due to improved gross margin.

 

The North American division posted revenue of $106.8 million, down 3% from the year-ago second quarter and down slightly compared to the first quarter of 2013, reflecting decreased demand and pricing pressure. Importantly, operating margin improved to 8%, up 110 basis points from the year-ago second quarter and 40 basis points from the first quarter of 2013.

 



 

Capital Deployment and Liquidity

 

Ciber’s cash balance at the end of the second quarter of 2013 was $33.6 million. The outstanding balance on the credit facility was $28.8 million.

 

Cash flow used in operating activities (continuing operations) year-to-date through June 30 was $17 million, an improvement of nearly $13 million versus the prior year, driven mostly by changes in receivables, accrued compensation and liabilities including the timing of our domestic payroll, payout of variable compensation and restructuring payments. Days Sales Outstanding (DSO) were 64 days. Capital expenditures totaled $1.3 million in the quarter.

 

Restructuring

 

On July 30, 2013, we approved a restructuring plan primarily focused on our International operations (“the 2013 Plan”).  The goal of the 2013 Plan is to improve utilization, strategically engage our lower-cost off-shore and near-shore resources, and centralize management of administrative functions in key markets to leverage shared services functions.  We expect the restructuring to impact approximately 190 employees.  The 2013 Plan will commence in the third quarter of 2013 and is expected to be completed in the first half of 2014.  We estimate the total amount of the restructuring charges for the 2013 Plan will be approximately $13 million, substantially all of which will be cash.  The charges associated with the 2013 Plan are substantially all related to personnel severance and related employee benefit costs. We expect the 2013 Plan will result in pre-tax net savings of approximately $12 million in 2014 and each year thereafter.

 

Continuing Operations and Segment Realignment

 

In Q2 2013, the operations of our Russian business met the criteria to be classified as a discontinued operation.  Quarterly results for 2012 and 2013 under the new reporting segments and with the Federal division, the Global ITO business and the Russia business as discontinued operations are provided in the tables of this earnings release and are available at www.ciber.com.

 

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 5:00 p.m. Eastern Time to discuss the Company’s financial results.

 

The live audiocast of the conference call will be available to the public at www.ciber.com/cbr. To participate in the conference call, dial 877-703-6110 (U.S.) or +1-857-244-7309 (outside the U.S.) ten minutes prior to the start of the call and provide the operator with the pass code 20106606.

 

A replay of the call and audiocast will be available one hour after the call ends through Aug. 30, 2013.  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 91007370.  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: second quarter 2013 revenue change year-over-year adjusted for currency; second quarter 2013 year-to-date revenue change year-over-year adjusted for currency; second quarter 2013 sequential revenue change adjusted for currency; international second quarter 2013 revenue change year-over-year adjusted for currency; International second quarter 2013 year-to-date revenue change year-over-year adjusted for currency; International second quarter 2013 sequential revenue change adjusted for currency; second quarter 2013 operating income and operating margin adjusted for restructuring charges; first quarter 2013 operating margin adjusted for restructuring charges;  second quarter 2013 net income from continuing operations

 



 

and net income per share from continuing operations adjusted for restructuring charges; second quarter 2013 year-to-date net income from continuing operations and net income per share from continuing operations adjusted for restructuring charges; and second quarter 2013 free cash flow from continuing operations. Reconciliations of non-GAAP to comparable GAAP measures are available in the schedules accompanying this release. 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,” “positioned,” “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 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; we may experience declines in revenue and profitability if we do not accurately estimate the cost of engagements conducted on a fixed-price basis; a data security or privacy breach could adversely affect our business; 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; our future success depends on our ability to continue to retain and attract qualified sales, delivery and technical employees; our results of operations can be adversely affected by economic conditions and the impacts of economic conditions on our clients’ operations and technology spending; if we are unable to collect our receivables, our results of operations and cash flows could be adversely affected; our Credit Agreement, an asset-based loan facility, limits our operational and financial flexibility; our revenues, operating results and profitability will vary from quarter to quarter, which may result in increased volatility in the price of our stock; termination of a contract by a significant client and/or cancellation with short notice could adversely affect our results of operations; our international operations are susceptible to different financial and operational risks than our domestic 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 presence in India may expose us to operational risks due to regulatory, economic, political, and other uncertainties; if we are not able to anticipate and keep pace with rapid changes in technology, our business will be negatively affected; 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; possible future consideration on the sale of certain contracts and assets associated with our information technology outsourcing practice may not be realized; 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 Annual Report on Form 10-K for the year ended December 31, 2012, Form 10-Q for the quarter ended March 31, 2013 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 leading global IT consulting company with some 6,700 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.

 



 

###

 

Contact:

Christian Mezger

Investor Relations

303-267-3857

cmezger@ciber.com

 

Betsy Loeff

Media Relations

303-967-1304

bloeff@ciber.com

 



 

Ciber, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

REVENUES

 

 

 

 

 

 

 

 

 

Consulting services

 

$

208,782

 

$

204,784

 

$

417,826

 

$

412,847

 

Other revenue

 

11,613

 

11,480

 

22,110

 

21,997

 

Total revenues

 

220,395

 

216,264

 

439,936

 

434,844

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

Cost of consulting services

 

158,440

 

151,666

 

316,014

 

308,312

 

Cost of other revenue

 

5,917

 

7,084

 

12,658

 

13,692

 

Selling, general and administrative

 

50,399

 

52,703

 

100,490

 

100,771

 

Amortization of intangible assets

 

 

161

 

 

325

 

Restructuring charges

 

604

 

 

953

 

 

Total operating expenses

 

215,360

 

211,614

 

430,115

 

423,100

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME FROM CONTINUING OPERATIONS

 

5,035

 

4,650

 

9,821

 

11,744

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

127

 

223

 

492

 

386

 

Interest expense

 

(463

)

(2,238

)

(1,520

)

(4,067

)

Other income, net

 

161

 

503

 

175

 

65

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

4,860

 

3,138

 

8,968

 

8,128

 

Income tax expense

 

1,925

 

2,716

 

4,584

 

6,420

 

 

 

 

 

 

 

 

 

 

 

NET INCOME FROM CONTINUING OPERATIONS

 

2,935

 

422

 

4,384

 

1,708

 

Loss from discontinued operations, net of income tax

 

(4,555

)

(297

)

(4,537

)

(380

)

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS)

 

(1,620

)

125

 

(153

)

1,328

 

Net income attributable to noncontrolling interests

 

146

 

206

 

 

266

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO CIBER, INC.

 

$

(1,766

)

$

(81

)

$

(153

)

$

1,062

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.04

 

$

 

$

0.06

 

$

0.02

 

Discontinued operations

 

(0.06

)

 

(0.06

)

(0.01

)

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

 

$

(0.02

)

$

 

$

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

74,690

 

73,013

 

74,381

 

72,874

 

Diluted

 

75,412

 

73,504

 

75,011

 

73,423

 

 



 

Ciber, Inc.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

June 30,
2013

 

December 31,
2012

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

33,621

 

$

58,849

 

Accounts receivable, net of allowances of $1,743 and $1,752, respectively

 

208,883

 

200,257

 

Prepaid expenses and other current assets

 

20,997

 

24,054

 

Total current assets

 

263,501

 

283,160

 

 

 

 

 

 

 

Property and equipment, net of accumulated depreciation of $48,764 and $47,859, respectively

 

11,534

 

13,683

 

Goodwill

 

272,558

 

276,599

 

Other assets

 

7,283

 

7,029

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

554,876

 

$

580,471

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Liabilities:

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current portion of long-term debt

 

$

3,139

 

$

6,337

 

Accounts payable

 

31,347

 

30,775

 

Accrued compensation and related liabilities

 

53,787

 

68,900

 

Deferred revenue

 

24,548

 

21,872

 

Income taxes payable

 

2,386

 

4,331

 

Other accrued expenses and liabilities

 

31,494

 

45,477

 

Total current liabilities

 

146,701

 

177,692

 

 

 

 

 

 

 

Long-term debt

 

25,703

 

19,790

 

Deferred income taxes

 

24,313

 

21,848

 

Other long-term liabilities

 

9,006

 

2,188

 

Total liabilities

 

205,723

 

221,518

 

 

 

 

 

 

 

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, 74,902 and 74,487 shares issued, respectively

 

749

 

745

 

Treasury stock, at cost, 16 and 708 shares, respectively

 

(60

)

(4,057

)

Additional paid-in capital

 

334,586

 

337,639

 

Retained earnings

 

21,074

 

24,032

 

Accumulated other comprehensive income (loss)

 

(7,730

)

208

 

Total Ciber, Inc. shareholders’ equity

 

348,619

 

358,567

 

Noncontrolling interests

 

534

 

386

 

Total equity

 

349,153

 

358,953

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

554,876

 

$

580,471

 

 



 

Ciber, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

 

2013

 

2012

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Consolidated net income (loss)

 

$

(153

)

$

1,328

 

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

 

 

 

 

 

Loss from discontinued operations

 

4,537

 

380

 

Depreciation

 

3,080

 

4,287

 

Amortization of intangible assets

 

 

325

 

Deferred income tax expense

 

2,516

 

2,606

 

Provision for (recovery on) doubtful receivables

 

712

 

(282

)

Share-based compensation expense

 

3,669

 

2,822

 

Amortization of debt costs

 

513

 

2,100

 

Other, net

 

208

 

529

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(16,157

)

(27,485

)

Other current and long-term assets

 

(470

)

1,774

 

Accounts payable

 

793

 

(5,458

)

Accrued compensation and related liabilities

 

(13,759

)

(392

)

Other current and long-term liabilities

 

(1,914

)

(11,315

)

Income taxes payable/refundable

 

(738

)

(1,191

)

Cash used in operating activities — continuing operations

 

(17,163

)

(29,972

)

Cash used in operating activities — discontinued operations

 

(3,367

)

(1,777

)

Cash used in operating activities

 

(20,530

)

(31,749

)

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

Purchases of property and equipment, net

 

(1,286

)

(2,661

)

Cash used in investing activities — continuing operations

 

(1,286

)

(2,661

)

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

 

(313

)

31,204

 

Cash provided by (used in) investing activities

 

(1,599

)

28,543

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

Borrowings on long-term debt

 

146,987

 

194,402

 

Payments on long-term debt

 

(144,274

)

(225,019

)

Employee stock purchases and options exercised

 

1,625

 

869

 

Credit facility fees paid

 

 

(3,326

)

Payment of initial fair value of acquisition-related contingent consideration

 

(3,428

)

 

Other, net

 

(429

)

 

Cash provided by (used in) financing activities — continuing operations

 

481

 

(33,074

)

Effect of foreign exchange rate changes on cash and cash equivalents

 

(3,580

)

(214

)

Net decrease in cash and cash equivalents

 

(25,228

)

(36,494

)

Cash and cash equivalents, beginning of period

 

58,849

 

65,567

 

Cash and cash equivalents, end of period

 

$

33,621

 

$

29,073

 

 



 

Ciber, Inc.

SUMMARY SEGMENT DATA

(Dollars in thousands)

(Unaudited)

 

Summary Segment Analysis

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2013

 

2012

 

Change

 

2013

 

2012

 

Change

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$

113,935

 

$

105,933

 

8

%

$

226,610

 

$

219,513

 

3

%

North America

 

106,759

 

110,514

 

(3

)%

213,928

 

215,973

 

(1

)%

Other

 

895

 

736

 

n/m

 

1,742

 

1,507

 

n/m

 

Total segment revenues

 

221,589

 

217,183

 

2

%

442,280

 

436,993

 

1

%

Inter-segment

 

(1,194

)

(919

)

n/m

 

(2,344

)

(2,149

)

n/m

 

Total revenues

 

$

220,395

 

$

216,264

 

2

%

$

439,936

 

$

434,844

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$

6,000

 

$

5,623

 

7

%

$

10,951

 

$

12,908

 

(15

)%

North America

 

8,502

 

7,608

 

12

%

16,598

 

14,618

 

14

%

Other

 

82

 

80

 

n/m

 

118

 

130

 

n/m

 

Total segment operating income

 

14,584

 

13,311

 

10

%

27,667

 

27,656

 

%

Corporate expenses

 

(8,945

)

(8,311

)

(8

)%

(16,893

)

(14,965

)

(13

)%

Unallocated results of discontinued operations

 

 

(189

)

n/m

 

 

(622

)

n/m

 

Earnings before interest, taxes, amortization and restructuring charges

 

5,639

 

4,811

 

17

%

10,774

 

12,069

 

(11

)%

Amortization of intangible assets

 

 

(161

)

100

%

 

(325

)

100

%

Restructuring charges

 

(604

)

 

n/m

 

(953

)

 

n/m

 

Total operating income from continuing operations

 

$

5,035

 

$

4,650

 

8

%

$

9,821

 

$

11,744

 

(16

)%

 


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 June 30,

 

Six Months Ended June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Revenues:

 

 

 

 

 

 

 

 

 

International

 

51

%

49

%

51

%

50

%

North America

 

48

%

51

%

49

%

49

%

Other

 

1

%

%

%

1

%

Total segment revenues

 

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

International

 

41

%

42

%

40

%

47

%

North America

 

58

%

57

%

60

%

53

%

Other

 

1

%

1

%

%

%

Total segment operating income

 

100

%

100

%

100

%

100

%

 

Segment Operating Margins

(excluding corporate expenses, amortization and restructuring charges)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Operating margin:

 

 

 

 

 

 

 

 

 

International

 

5

%

5

%

5

%

6

%

North America

 

8

%

7

%

8

%

7

%

Other

 

9

%

11

%

7

%

9

%

Total segment operating margin

 

7

%

6

%

6

%

6

%

 



 

CIBER, Inc.

QUARTERLY RESULTS OF OPERATIONS

(Dollars in thousands)

(Unaudited)

 

 

 

June 30,
2013

 

Mar. 31,
2013

 

Dec. 31,
2012

 

Sept. 30,
2012

 

June 30,
2012

 

Mar. 31,
2012

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

Consulting services

 

$

208,782

 

$

209,044

 

$

206,790

 

$

200,211

 

$

204,784

 

$

208,063

 

Other revenue

 

11,613

 

10,497

 

12,747

 

11,005

 

11,480

 

10,517

 

Total revenues

 

220,395

 

219,541

 

219,537

 

211,216

 

216,264

 

218,580

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of consulting services

 

158,440

 

157,574

 

155,511

 

151,671

 

151,666

 

156,646

 

Cost of other revenue

 

5,917

 

6,741

 

6,808

 

6,125

 

7,084

 

6,608

 

Selling, general and administrative

 

50,399

 

50,091

 

52,448

 

48,966

 

52,703

 

48,068

 

Amortization of intangible assets

 

 

 

162

 

157

 

161

 

164

 

Restructuring charges

 

604

 

349

 

7,981

 

 

 

 

Total operating expenses

 

215,360

 

214,755

 

222,910

 

206,919

 

211,614

 

211,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS

 

5,035

 

4,786

 

(3,373

)

4,297

 

4,650

 

7,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

127

 

365

 

123

 

109

 

223

 

163

 

Interest expense

 

(463

)

(1,057

)

(813

)

(1,096

)

(2,238

)

(1,829

)

Other income (expense), net

 

161

 

14

 

190

 

(614

)

503

 

(438

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

4,860

 

4,108

 

(3,873

)

2,696

 

3,138

 

4,990

 

Income tax expense

 

1,925

 

2,659

 

2,103

 

2,501

 

2,716

 

3,704

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) FROM CONTINUING OPERATIONS

 

2,935

 

1,449

 

(5,976

)

195

 

422

 

1,286

 

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

 

(4,555

)

18

 

(119

)

(9,510

)

(297

)

(83

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS)

 

(1,620

)

1,467

 

(6,095

)

(9,315

)

125

 

1,203

 

Net income (loss) attributable to noncontrolling interests

 

146

 

(146

)

145

 

134

 

206

 

60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO CIBER, INC.

 

$

(1,766

)

$

1,613

 

$

(6,240

)

$

(9,449

)

$

(81

)

$

1,143

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.04

 

$

0.02

 

$

(0.08

)

$

 

$

 

$

0.02

 

Discontinued operations

 

(0.06

)

 

 

(0.13

)

 

 

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

 

$

(0.02

)

$

0.02

 

$

(0.08

)

$

(0.13

)

$

 

$

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

74,690

 

74,072

 

73,639

 

73,276

 

73,013

 

72,735

 

Diluted

 

75,412

 

74,609

 

73,639

 

73,647

 

73,504

 

73,342

 

 



 

CIBER, Inc.

HISTORICAL SEGMENT DATA, CONTINUING OPERATIONS PRESENTATION

(Dollars in thousands)

(Unaudited)

 

 

 

Three months ended

 

Six
Months
Ended

 

Three months ended

 

Year
ended

 

 

 

June 30,

 

Mar 31,

 

June 30,

 

Dec. 31,

 

Sept. 30,

 

June 30,

 

Mar 31,

 

Dec. 31,

 

 

 

2013

 

2013

 

2013

 

2012

 

2012

 

2012

 

2012

 

2012

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$

113,935

 

$

112,675

 

$

226,610

 

$

112,453

 

$

102,227

 

$

105,933

 

$

113,580

 

$

434,193

 

North America

 

106,759

 

107,169

 

213,928

 

107,513

 

109,346

 

110,514

 

105,459

 

432,832

 

Other

 

895

 

847

 

1,742

 

800

 

802

 

736

 

771

 

3,109

 

Total segment revenues

 

221,589

 

220,691

 

442,280

 

220,766

 

212,375

 

217,183

 

219,810

 

870,134

 

Inter-segment

 

(1,194

)

(1,150

)

(2,344

)

(1,229

)

(1,159

)

(919

)

(1,230

)

(4,537

)

Total revenues

 

$

220,395

 

$

219,541

 

$

439,936

 

$

219,537

 

$

211,216

 

$

216,264

 

$

218,580

 

$

865,597

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$

6,000

 

$

4,951

 

$

10,951

 

$

6,447

 

$

3,890

 

$

5,623

 

$

7,285

 

$

23,245

 

North America

 

8,502

 

8,096

 

16,598

 

7,726

 

7,825

 

7,608

 

7,010

 

30,169

 

Other

 

82

 

36

 

118

 

120

 

196

 

80

 

50

 

446

 

Total segment operating income

 

14,584

 

13,083

 

27,667

 

14,293

 

11,911

 

13,311

 

14,345

 

53,860

 

Corporate expenses

 

(8,945

)

(7,948

)

(16,893

)

(9,523

)

(7,517

)

(8,311

)

(6,654

)

(32,005

)

Unallocated expenses (benefits) of discontinued operations

 

 

 

 

 

60

 

(189

)

(433

)

(562

)

Earnings before interest, taxes, amortization and restructuring

 

5,639

 

5,135

 

10,774

 

4,770

 

4,454

 

4,811

 

7,258

 

21,293

 

Amortization of intangible assets

 

 

 

 

(162

)

(157

)

(161

)

(164

)

(644

)

Restructuring charges

 

(604

)

(349

)

(953

)

(7,981

)

 

 

 

(7,981

)

Total operating income (loss) from continuing operations

 

$

5,035

 

$

4,786

 

$

9,821

 

$

(3,373

)

$

4,297

 

$

4,650

 

$

7,094

 

$

12,668

 

 



 

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, our quarterly earnings call, and our quarterly report on form 10-Q 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 June 30, 2013

 

 

 

Constant Currency
Revenue Increase

 

Foreign Exchange
Impact

 

GAAP Reported
Revenue Increase

 

Revenues:

 

 

 

 

 

 

 

Consolidated

 

1.3

%

0.6

%

1.9

%

 

 

 

 

 

 

 

 

International

 

6.3

%

1.3

%

7.6

%

 

 

 

Sequential Three Months Ended June 30, 2013

 

 

 

Constant Currency
Revenue Increase

 

Foreign Exchange
Impact

 

GAAP Reported
Revenue Increase

 

Revenues:

 

 

 

 

 

 

 

Consolidated

 

1.2

%

(0.8

)%

0.4

%

 

 

 

 

 

 

 

 

International

 

2.7

%

(1.6

)%

1.1

%

 

 

 

Six Months Ended June 30, 2013

 

 

 

Constant Currency
Revenue Increase

 

Foreign Exchange
Impact

 

GAAP Reported
Revenue Increase

 

Revenues:

 

 

 

 

 

 

 

Consolidated

 

0.7

%

0.5

%

1.2

%

 

 

 

 

 

 

 

 

International

 

2.3

%

0.9

%

3.2

%

 

Adjusted Second Quarter Results

 

 

 

Consolidated

 

 

 

Three Months Ended

 

 

 

June 30, 2013

 

March 31,
2013

 

 

 

 

 

Margin

 

Margin

 

GAAP reported Operating income

 

$

5.0

 

2.3

%

2.2

%

Restructuring charges

 

0.6

 

0.3

%

0.1

%

Operating income before restructuring charges

 

$

5.6

 

2.6

%

2.3

%

 



 

 

 

Consolidated*

 

 

 

Three Months
Ended June 30,
2013

 

Three Months
Ended March 31,
2013

 

Six Months
Ended June 30,
2013

 

 

 

 

 

Per
Diluted
Share

 

 

 

Per
Diluted
Share

 

 

 

Per
Diluted
Share

 

GAAP Net income from continuing operations

 

$

2.9

 

$

0.04

 

$

1.4

 

$

0.02

 

$

4.4

 

$

0.06

 

Restructuring charges

 

0.6

 

 

0.3

 

 

1.0

 

0.01

 

Tax impact of restructuring charges

 

(0.1

)

 

 

 

(0.2

)

 

Net income from continuing operations before restructuring charges

 

$

3.4

 

$

0.04

 

$

1.8

 

$

0.03

 

$

5.2

 

$

0.07

 

 


* May not foot due to rounding

 

 

 

Consolidated

 

 

 

Three Months Ended
June 30, 2013

 

 

 

 

 

GAAP cash used in operating activities — continuing operations

 

$

10.1

 

Purchases of property and equipment, net

 

(0.9

)

Free cash flow from continuing operations

 

$

9.2