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Exhibit 99.1

 

GRAPHIC

 

 

 

Contact:

 

Christian Mezger

 

Robin Caputo

 

 

 

 

Corporate Finance

 

Media Relations

 

 

 

 

303-267-3857

 

303-267-3876

 

 

 

 

cmezger@ciber.com

 

rcaputo@ciber.com

 

CIBER REPORTS FOURTH QUARTER AND FULL YEAR 2012 RESULTS

 

GREENWOOD VILLAGE, Colo., Feb 21, 2013— Ciber, Inc. (NYSE: CBR), a leading global information technology consulting, services and outsourcing company, today reported results for the fourth quarter and full year 2012.

 

Highlights From Continuing Operations for the Fourth Quarter 2012 Include:

 

·                  Revenue of $225.3 million, a 2% increase, up 3% in constant currency, compared with last year’s fourth quarter

·                  Operating income of $5.2 million, before previously announced restructuring charges of $8.0 million

·                  Net income (loss) from continuing operations of $(5.4) million, or $(0.08) per share, after restructuring charges of $8.0 million, or $0.09 per share

·                  Non-GAAP net income from continuing operations of $1.3 million, or $0.02 per share, before restructuring charges

·                  Operating cash flow from continuing operations of $35 million.

 

Highlights From Continuing Operations for the Full Year 2012 Include:

 

·                  Revenue of $884.4 million, a 2% decrease, up 1% in constant currency

·                  Operating income of $22.4 million, before previously announced restructuring charges of $8.0 million

·                  Net income (loss) from continuing operations of $(2.5) million, or $(0.04) per share, after restructuring charges of $8.0 million, or $0.09 per share

·                  Non-GAAP net income from continuing operations of $4.2 million, or $0.05 per share, before restructuring charges

·                  Operating cash flow from continuing operations of $1.3 million

 

President and Chief Executive Officer Dave Peterschmidt said, “Ciber delivered much improved financial results in the fourth quarter and for the full year 2012.  At the end of the third quarter, I said my objective was to end 2012 with improved financials and a stronger operating margin exit rate. We did just that. Management’s strategy resulted in higher operating margins, sequential revenue growth and positive operating and free cash flow in the fourth quarter.”

 

Peterschmidt continued, “2012 overall, was a year of transformation for Ciber, and we made significant progress on many fronts.  We strengthened our management team with industry-leading talent; divested non-core assets; streamlined our operations, including a previously announced restructuring; de-levered our balance sheet, significantly reducing our interest costs; and furthered our strategy to move into higher value markets, and drive revenue growth. Our North American business is healthier than it was a year ago, an important demonstration of successful execution of our strategy, and our international business is delivering improved results that we can build on.”

 

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.  Our objective remains to lower our overall cost structure, improve operating procedures, and gain efficiencies in delivery, while improving the quality of our client-facing services. The restructuring plan we announced in the third quarter is well underway. We

 

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continue to expect savings of $7 million in 2013 and $11 million annually thereafter.  We incurred $8 million, or $0.09 per share in restructuring charges in the fourth quarter of 2012. Our previously announced restructuring charge of $14 million has been reduced to $13 million. The remaining $5 million, or $0.06 per share will be reflected in 2013.”

 

Market Highlights in the Fourth Quarter Include:

 

·                  The largest community college system in the U.S. selected Ciber to implement its ERP system based on Ciber’s qualifications in higher education, as well as our position as an Oracle Certified Partner.

·                  In the UK, Ciber expanded its footprint in the financial services market with Dynamics CRM, securing multiple new contracts and extensions at six major banks and insurance companies.

·                  Ciber was selected by one of the fastest growing wireless handset manufacturers to assist with migration from a previous parent company, as well as for a three-year managed services contract where Ciber will manage significant IT functions for this innovative company.

·                  A worldwide resorts and entertainment company expanded Ciber’s long-term partnership to include management of the business analysis function. This global leader cited our metrics reporting to validate operational efficiencies derived from our managed services approach.

 

Fourth Quarter Financial Results from Continuing Operations

 

Revenue of $225.3 million increased 2%, or 3% in constant currency, compared with last year’s fourth quarter.  Sequentially from the third quarter of 2012, revenue increased 4%, or 3% in constant currency.

 

Gross margin for the fourth quarter was 26.1%, compared with 26.8% in last year’s fourth quarter and 25.3% in the third quarter of 2012.  The year-over-year gross margin decline reflected lower international utilization associated with training employees as the company transitions from subcontractors, and reduced pricing on additional work within a large North America account, while the sequential improvement reflected more efficient delivery of a streamlined set of offerings and improved product mix.

 

Selling, general and administrative expenses (SG&A) in the fourth quarter were $53.5 million, a $1.2 million or 2% reduction from the fourth quarter of last year.  SG&A as a percentage of revenue in the fourth quarter of 2012 improved 110 basis points year-over-year, as Ciber has implemented cost containment and efficiency initiatives that have significantly improved the 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.

 

Fourth quarter 2012 operating income from continuing operations before restructuring charges of $5.2 million, yielded an operating margin of 2.3%, up from 2.0% in the prior-year fourth quarter and 2.1% in the third quarter of 2012.

 

Non-GAAP net income from continuing operations before restructuring charges for the fourth quarter of 2012 was $1.3 million, or $0.02 per share.  Last year’s fourth quarter net income from continuing operations was $1.6 million, or $0.02 per share.

 

Revenue in the International division was $118.2 million for the fourth quarter of 2012, representing a year-over-year increase of 1%, 3% in constant currency.  Compared to the third quarter of 2012, revenue increased 11%, or 7% in constant currency.  Fourth quarter sequential and year-over-year revenue performance was led by Germany and Norway.  Operating margin of 6.0% was up sequentially, and from the fourth quarter of 2011.  SG&A expenses were lower than the fourth quarter of 2011, but increased as compared to the third quarter of 2012, due to typical seasonality.  Gross margin was slightly lower than last year’s fourth quarter, but improved sequentially from the third quarter of 2012, benefiting from improved utilization and better product mix.

 

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The North America division posted revenue of $107.5 million, up 2% from the year-ago fourth quarter and down 2% sequentially due to typical seasonal trends.  Importantly, operating margin was strong at 7.2%, up from the fourth quarter of 2011 and unchanged sequentially.  The solid operating margin was driven by SG&A leverage that offset a gross margin that was lower than last year’s fourth quarter.

 

Full Year Financial Results from Continuing Operations

 

Note:  Comparative results for 2011 include a number of accounting and goodwill adjustments incurred in the second quarter 2011.

 

Revenue of $884.4 million decreased 2%, a 1% increase in constant currency, compared to 2011.

 

Gross margin for the full year increased to 25.8%, compared with 25.4% in 2011, driven by improved bench and overall project management.

 

Selling, general and administrative expenses (SG&A) for the full year declined $14.1 million to $205.6 million, a 6.5% decline from 2011, and were 120 basis points lower as a percent of revenue.  Ciber has implemented cost containment and efficiency initiatives that 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.

 

2012 operating income from continuing operations before restructuring charges of $22.4 million yielded an operating margin of 2.5%, up 350 basis points from (1.0%) in 2011.

 

Net income (loss) from continuing operations in 2012 was $(2.5) million, or $(0.04) per share, including restructuring charges of $8.0 million, or $0.09 per share.  Non-GAAP net income from continuing operations in 2012 totaled $4.2 million, or $0.05 per share, before the restructuring charges. This compares to net income (loss) from continuing operations of $(50.7) million, or $(0.71) per share in 2011.

 

Revenue in the International division was $453.0 million in 2012, representing a year-over-year decrease of 4%, an increase of 2% in constant currency.  Revenue performance was led by Germany, Norway, and the UK which combined comprised approximately 50% of the International division’s revenue.  Operating margin totaled to 5.5% in 2012, roughly comparable to 2011.  SG&A expenses improved to 18.4% in 2012, compared to 19.6% in 2011 offsetting lower gross margin in 2012, compared to 2011, resulting from lower utilization and higher labor costs in some of the larger geographies.

 

The North America division posted revenue of $432.8 million for the full year 2012, up 1% from 2011.  Importantly, operating margin was 7.0%, up significantly from 2011, driven by improvement in both gross margin and SG&A and reflecting better utilization, project management and delivery costs, and implementation of plans to streamline operations.

 

Capital Deployment and Liquidity

 

Ciber’s cash balance at the end of the fourth quarter of 2012 was $58.8 million.  The outstanding balance on the credit facility was $26.0 million.

 

Cash flow provided by operating activities (continuing operations) year-to-date through December 31 was $1.3 million, driven mostly by improved net income.  Seasonality exists in cash flows with stronger cash flow occurring during the last quarter of the year.  Days Sales Outstanding (DSO) were 61 days.  Capital expenditures totaled $3.3 million for the full year 2012.

 

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,

 

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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 2011and 2012, 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 recorded $8 million ($0.09 per share) of restructuring charges in the fourth quarter of 2012, and expects to record $5 million, $(0.06 per share) of restructuring charges in 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 866-713-8567 (U.S.) or +1-617-597-5326 (outside the U.S.) ten minutes prior to the start of the call and provide the operator with the pass code 82232861.

 

A replay of the call and audiocast will be available one hour after the call ends through March 21, 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 46779339.  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: consolidated revenue change,  quarter-over-quarter, year-over-year and sequentially, adjusted for currency; International revenue change,  quarter-over-quarter, year-over-year and sequentially, adjusted for currency;  fourth quarter 2012 and full year 2012 operating income and operating margin adjusted for restructuring charges; and fourth quarter 2012 and full year 2012 net loss and net loss per share adjusted for restructuring charges. 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 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

 

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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 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; 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; 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, 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 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
December 31,

 

Year Ended
December 31,

 

 

 

2012

 

2011

 

2012

 

2011

 

REVENUES

 

 

 

 

 

 

 

 

 

Consulting services

 

$

211,883

 

$

208,667

 

$

833,496

 

$

856,113

 

Other revenue

 

13,406

 

12,330

 

50,942

 

44,943

 

Total revenues

 

225,289

 

220,997

 

884,438

 

901,056

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

Cost of consulting services

 

158,934

 

154,605

 

624,729

 

646,953

 

Cost of other revenue

 

7,516

 

7,246

 

31,142

 

25,384

 

Selling, general and administrative

 

53,470

 

54,749

 

205,550

 

219,723

 

Goodwill impairment

 

 

 

 

16,300

 

Amortization of intangible assets

 

162

 

89

 

644

 

1,534

 

Restructuring charges

 

7,981

 

 

7,981

 

 

Total operating expenses

 

228,063

 

216,689

 

870,046

 

909,894

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS

 

(2,774

)

4,308

 

14,392

 

(8,838

)

 

 

 

 

 

 

 

 

 

 

Interest income

 

171

 

580

 

743

 

987

 

Interest expense

 

(813

)

(2,526

)

(5,976

)

(7,898

)

Other income (expense), net

 

77

 

481

 

(258

)

(2,524

)

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

(3,339

)

2,843

 

8,901

 

(18,273

)

Income tax expense

 

2,094

 

1,256

 

11,373

 

32,450

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) FROM CONTINUING OPERATIONS

 

(5,433

)

1,587

 

(2,472

)

(50,723

)

Loss from discontinued operations, net of income tax

 

(662

)

(17,914

)

(11,610

)

(16,509

)

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET LOSS

 

(6,095

)

(16,327

)

(14,082

)

(67,232

)

Net income (loss) attributable to noncontrolling interests

 

145

 

(176

)

545

 

29

 

 

 

 

 

 

 

 

 

 

 

NET LOSS ATTRIBUTABLE TO CIBER, INC.

 

$

(6,240

)

$

(16,151

)

$

(14,627

)

$

(67,261

)

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.08

)

$

0.02

 

$

(0.04

)

$

(0.71

)

Discontinued operations

 

(0.01

)

(0.24

)

(0.16

)

(0.23

)

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

 

$

(0.09

)

$

(0.22

)

$

(0.20

)

$

(0.94

)

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

73,639

 

72,484

 

73,166

 

71,831

 

Diluted

 

73,639

 

72,788

 

73,166

 

71,831

 

 



 

Ciber, Inc.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

December 31,
2012

 

December 31,
2011

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

58,849

 

$

65,567

 

Accounts receivable, net of allowances of $1,752 and $1,422, respectively

 

200,257

 

182,359

 

Prepaid expenses and other current assets

 

22,164

 

25,041

 

Deferred income taxes

 

1,890

 

3,302

 

Current assets of discontinued operations

 

 

21,041

 

Total current assets

 

283,160

 

297,310

 

 

 

 

 

 

 

Property and equipment, net of accumulated depreciation of $47,859 and $43,617, respectively

 

13,683

 

17,827

 

Goodwill

 

276,599

 

275,504

 

Other assets

 

7,029

 

5,888

 

Long-term assets of discontinued operations

 

 

28,541

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

580,471

 

$

625,070

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Liabilities:

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current portion of long-term debt

 

$

6,337

 

$

25,571

 

Accounts payable

 

30,775

 

35,112

 

Accrued compensation and related liabilities

 

68,900

 

60,124

 

Deferred revenue

 

21,872

 

19,876

 

Income taxes payable

 

4,331

 

8,613

 

Other accrued expenses and liabilities

 

45,477

 

45,454

 

Current liabilities of discontinued operations

 

 

9,742

 

Total current liabilities

 

177,692

 

204,492

 

 

 

 

 

 

 

Long-term debt

 

19,790

 

41,380

 

Deferred income taxes

 

21,848

 

15,462

 

Other long-term liabilities

 

2,188

 

6,729

 

Total liabilities

 

221,518

 

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, 708 and 1,919 shares, respectively

 

(4,057

)

(10,998

)

Additional paid-in capital

 

337,639

 

330,088

 

Retained earnings

 

24,032

 

44,337

 

Accumulated other comprehensive income (loss)

 

208

 

(7,006

)

Total Ciber, Inc. shareholders’ equity

 

358,567

 

357,166

 

Noncontrolling interests

 

386

 

(159

)

Total equity

 

358,953

 

357,007

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

580,471

 

$

625,070

 

 



 

Ciber, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Year Ended December 31,

 

 

 

2012

 

2011

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Consolidated net loss

 

$

(14,082

)

$

(67,232

)

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

 

 

 

 

 

Loss from discontinued operations

 

11,610

 

16,509

 

Goodwill impairment

 

 

16,300

 

Depreciation

 

7,465

 

7,976

 

Amortization of intangible assets

 

644

 

1,534

 

Deferred income tax expense

 

4,892

 

26,900

 

Provision for doubtful receivables

 

825

 

337

 

Share-based compensation expense

 

7,282

 

4,540

 

Change in fair value of acquisition-related contingent consideration

 

 

3,222

 

Amortization of debt costs

 

2,615

 

2,182

 

Other, net

 

667

 

(661

)

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

Accounts receivable

 

(15,987

)

30,540

 

Other current and long-term assets

 

(1,180

)

(2,394

)

Accounts payable

 

(4,848

)

(12,693

)

Accrued compensation and related liabilities

 

7,363

 

(3,176

)

Other current and long-term liabilities

 

(5,013

)

(2,420

)

Income taxes payable/refundable

 

(949

)

(2,555

)

Cash provided by operating activities — continuing operations

 

1,304

 

18,909

 

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

 

(2,981

)

12,613

 

Cash provided by (used in) operating activities

 

(1,677

)

31,522

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

Acquisitions, net of cash acquired

 

 

(895

)

Purchases of property and equipment, net

 

(3,262

)

(13,217

)

Cash used in investing activities — continuing operations

 

(3,262

)

(14,112

)

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

 

37,773

 

(2,214

)

Cash provided by (used in) investing activities

 

34,511

 

(16,326

)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

Borrowings on long-term debt

 

337,475

 

377,676

 

Payments on long-term debt

 

(377,617

)

(399,483

)

Employee stock purchases and options exercised

 

1,263

 

7,490

 

Credit facility fees paid

 

(3,389

)

(2,000

)

Other, net

 

(688

)

(1,019

)

Cash used in financing activities — continuing operations

 

(42,956

)

(17,336

)

Effect of foreign exchange rate changes on cash and cash equivalents

 

3,404

 

(1,622

)

Net decrease in cash and cash equivalents

 

(6,718

)

(3,762

)

Cash and cash equivalents, beginning of period

 

65,567

 

69,329

 

Cash and cash equivalents, end of period

 

$

58,849

 

$

65,567

 

 



 

Ciber, Inc.

SUMMARY SEGMENT DATA

(Dollars in thousands)

(Unaudited)

 

Summary Segment Analysis

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

 

2012

 

2011

 

Change

 

2012

 

2011

 

Change

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$

118,205

 

$

116,750

 

1%

 

$

453,034

 

$

472,867

 

(4)%

 

North America

 

107,513

 

105,336

 

2%

 

432,832

 

429,289

 

1%

 

Other

 

800

 

904

 

n/m

 

3,109

 

3,510

 

n/m

 

Total segment revenues

 

226,518

 

222,990

 

2%

 

888,975

 

905,666

 

(2)%

 

Inter-segment

 

(1,229

)

(1,993

)

n/m

 

(4,537

)

(4,610

)

n/m

 

Total revenues

 

$

225,289

 

$

220,997

 

2%

 

$

884,438

 

$

901,056

 

(2)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$

7,046

 

$

6,829

 

3%

 

$

24,969

 

$

27,147

 

(8)%

 

North America

 

7,726

 

5,613

 

38%

 

30,169

 

12,385

 

144%

 

Other

 

120

 

135

 

n/m

 

446

 

499

 

n/m

 

Total segment operating income

 

14,892

 

12,577

 

18%

 

55,584

 

40,031

 

39%

 

Corporate expenses

 

(9,523

)

(7,793

)

(22)%

 

(32,005

)

(29,680

)

(8)%

 

Unallocated results of discontinued operations

 

 

(387

)

n/m

 

(562

)

(1,355

)

n/m

 

Earnings before interest, taxes, amortization and restructuring

 

5,369

 

4,397

 

22%

 

23,017

 

8,996

 

156%

 

Goodwill impairment

 

 

 

n/m

 

 

(16,300

)

n/m

 

Amortization of intangible assets

 

(162

)

(89

)

82%

 

(644

)

(1,534

)

58%

 

Restructuring charges

 

$

(7,981

)

$

 

n/m

 

$

(7,981

)

$

 

n/m

 

Total operating loss from continuing operations

 

$

(2,774

)

$

4,308

 

(164)%

 

$

14,392

 

$

(8,838

)

263%

 

 


n/m = not meaningful

 

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

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

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

 

2012

 

2011

 

2012

 

2011

 

Revenues:

 

 

 

 

 

 

 

 

 

International

 

52

%

53

%

51

%

53

%

North America

 

48

%

47

%

49

%

47

%

Other

 

%

%

%

%

Total segment revenues

 

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

International

 

47

%

54

%

45

%

68

%

North America

 

52

%

45

%

54

%

31

%

Other

 

1

%

1

%

1

%

1

%

Total segment operating income

 

100

%

100

%

100

%

100

%

 

Segment Operating Margins

(excluding corporate expenses, goodwill impairment, amortization and restructuring)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

 

2012

 

2011

 

2012

 

2011

 

Operating margin:

 

 

 

 

 

 

 

 

 

International

 

6

%

6

%

6

%

6

%

North America

 

7

%

5

%

7

%

3

%

Other

 

15

%

15

%

14

%

14

%

Total segment operating margin

 

7

%

6

%

6

%

4

%

 



 

Ciber, Inc.

QUARTERLY RESULTS OF OPERATIONS

(Dollars in thousands)

(Unaudited)

 

 

 

Dec. 31, 2012

 

Sept. 30, 2012

 

June 30, 2012

 

Mar. 31, 2012

 

Dec. 31, 2011

 

Sept. 30, 2011

 

June 30, 2011

 

Mar. 31, 2011

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consulting services

 

$

211,883

 

$

203,117

 

$

207,699

 

$

210,797

 

$

208,667

 

$

212,543

 

$

209,726

 

$

225,177

 

Other revenue

 

13,406

 

12,681

 

12,514

 

12,341

 

12,330

 

10,068

 

11,565

 

10,980

 

Total revenues

 

225,289

 

215,798

 

220,213

 

223,138

 

220,997

 

222,611

 

221,291

 

236,157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of consulting services

 

158,934

 

153,716

 

153,745

 

158,334

 

154,605

 

157,962

 

167,831

 

166,555

 

Cost of other revenue

 

7,516

 

7,529

 

7,843

 

8,254

 

7,246

 

6,047

 

5,913

 

6,178

 

Selling, general and administrative

 

53,470

 

49,781

 

53,420

 

48,879

 

54,749

 

52,439

 

57,033

 

55,502

 

Goodwill impairment

 

 

 

 

 

 

 

16,300

 

 

Amortization of intangible assets

 

162

 

157

 

161

 

164

 

89

 

131

 

682

 

632

 

Restructuring Charges

 

7,981

 

 

 

 

 

 

 

 

Total operating expenses

 

228,063

 

211,183

 

215,169

 

215,631

 

216,689

 

216,579

 

247,759

 

228,867

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS

 

(2,774

)

4,615

 

5,044

 

7,507

 

4,308

 

6,032

 

(26,468

)

7,290

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

171

 

149

 

226

 

197

 

580

 

203

 

148

 

56

 

Interest expense

 

(813

)

(1,096

)

(2,238

)

(1,829

)

(2,526

)

(2,005

)

(1,875

)

(1,492

)

Other income (expense), net

 

77

 

(449

)

695

 

(581

)

481

 

469

 

(2,689

)

(785

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

(3,339

)

3,219

 

3,727

 

5,294

 

2,843

 

4,699

 

(30,884

)

5,069

 

Income tax expense

 

2,094

 

2,638

 

2,860

 

3,781

 

1,256

 

2,960

 

27,139

 

1,095

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

(5,433

)

581

 

867

 

1,513

 

1,587

 

1,739

 

(58,023

)

3,974

 

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

 

(662

)

(9,896

)

(742

)

(310

)

(17,914

)

1,425

 

(242

)

222

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS)

 

(6,095

)

(9,315

)

125

 

1,203

 

(16,327

)

3,164

 

(58,265

)

4,196

 

Net income (loss) attributable to noncontrolling interests

 

145

 

134

 

206

 

60

 

(176

)

24

 

108

 

73

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO CIBER, INC.

 

$

(6,240

)

$

(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

 

$

(0.08

)

$

0.01

 

$

0.01

 

$

0.02

 

$

0.02

 

$

0.02

 

$

(0.81

)

$

0.06

 

Discontinued operations

 

(0.01

)

(0.14

)

(0.01

)

 

(0.24

)

0.02

 

 

 

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

 

$

(0.09

)

$

(0.13

)

$

 

$

0.02

 

$

(0.22

)

$

0.04

 

$

(0.81

)

$

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

73,639

 

73,276

 

73,013

 

72,735

 

72,484

 

72,209

 

71,695

 

70,936

 

Diluted

 

73,639

 

73,647

 

73,504

 

73,342

 

72,788

 

72,609

 

71,695

 

72,091

 

 



 

Ciber, Inc.

HISTORICAL SEGMENT DATA, CONTINUING OPERATIONS PRESENTATION

(Dollars in thousands)

(Unaudited)

 

 

 

Three months ended

 

Year ended

 

Three months ended

 

Year ended

 

 

 

Mar. 31,

 

June 30,

 

Sept. 30,

 

Dec. 31,

 

Dec. 31,

 

Mar. 31,

 

June 30,

 

Sept. 30,

 

Dec. 31,

 

Dec. 31,

 

 

 

2011

 

2011

 

2011

 

2011

 

2011

 

2012

 

2012

 

2012

 

2012

 

2012

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$

118,344

 

$

123,817

 

$

113,956

 

$

116,750

 

$

472,867

 

$

118,138

 

$

109,882

 

$

106,809

 

$

118,205

 

$

453,034

 

North America

 

117,470

 

97,480

 

109,003

 

105,336

 

429,289

 

105,459

 

110,514

 

109,346

 

107,513

 

432,832

 

Other

 

858

 

772

 

976

 

904

 

3,510

 

771

 

736

 

802

 

800

 

3,109

 

Total segment revenues

 

236,672

 

222,069

 

223,935

 

222,990

 

905,666

 

224,368

 

221,132

 

216,957

 

226,518

 

888,975

 

Inter-segment

 

(515

)

(778

)

(1,324

)

(1,993

)

(4,610

)

(1,230

)

(919

)

(1,159

)

(1,229

)

(4,537

)

Total revenues

 

$

236,157

 

$

221,291

 

$

222,611

 

$

220,997

 

$

901,056

 

$

223,138

 

$

220,213

 

$

215,798

 

$

225,289

 

$

884,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$

7,308

 

$

7,715

 

$

5,295

 

$

6,829

 

$

27,147

 

$

7,698

 

$

6,017

 

$

4,208

 

$

7,046

 

$

24,969

 

North America

 

8,347

 

(9,817

)

8,242

 

5,613

 

12,385

 

7,010

 

7,608

 

7,825

 

7,726

 

30,169

 

Other

 

152

 

73

 

139

 

135

 

499

 

50

 

80

 

196

 

120

 

446

 

Total segment operating income (loss)

 

15,807

 

(2,029

)

13,676

 

12,577

 

40,031

 

14,758

 

13,705

 

12,229

 

14,892

 

55,584

 

Corporate expenses

 

(7,510

)

(7,134

)

(7,243

)

(7,793

)

(29,680

)

(6,654

)

(8,311

)

(7,517

)

(9,523

)

(32,005

)

Unallocated results of discontinued operations

 

(375

)

(323

)

(270

)

(387

)

(1,355

)

(433

)

(189

)

60

 

 

(562

)

Earnings (loss) before interest, taxes, amortization and restructuring

 

7,922

 

(9,486

)

6,163

 

4,397

 

8,996

 

7,671

 

5,205

 

4,772

 

5,369

 

23,017

 

Goodwill impairment

 

 

(16,300

)

 

 

(16,300

)

 

 

 

 

 

Amortization of intangible assets

 

(632

)

(682

)

(131

)

(89

)

(1,534

)

(164

)

(161

)

(157

)

(162

)

(644

)

Restructuring charges

 

 

 

 

 

 

 

 

 

(7,981

)

(7,981

)

Total operating income (loss) from continuing operations

 

$

7,290

 

$

(26,468

)

$

6,032

 

$

4,308

 

$

(8,838

)

$

7,507

 

$

5,044

 

$

4,615

 

$

(2,774

)

$

14,392

 

 



 

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, 2012

 

 

 

Constant Currency
Revenue Increase

 

Foreign Exchange
Impact

 

GAAP Reported
Revenue Increase

 

Revenues:

 

 

 

 

 

 

 

Consolidated

 

3

%

(1

)%

2

%

International

 

3

%

(2

)%

1

%

 

 

 

Sequential Three Months Ended December 31, 2012

 

 

 

Constant Currency
Revenue Increase

 

Foreign Exchange
Impact

 

GAAP Reported
Revenue Increase

 

Revenues:

 

 

 

 

 

 

 

Consolidated

 

3

%

1

%

4

%

International

 

7

%

4

%

11

%

 

 

 

Year Ended December 31, 2012

 

 

 

Constant Currency
Revenue Increase

 

Foreign Exchange
Impact

 

GAAP Reported
Revenue
Decrease

 

Revenues:

 

 

 

 

 

 

 

Consolidated

 

1

%

(3

)%

(2

)%

International

 

2

%

(6

)%

(4

)%

 

Adjusted Fourth Quarter and Full Year Results

 

 

 

Consolidated

 

 

 

Three Months Ended
December 31, 2012

 

Year Ended December
31, 2012

 

 

 

 

 

Margin

 

 

 

Margin

 

Operating income (loss), as reported

 

$

(2.8

)

(1.2

)%

$

14.4

 

1.6

%

Restructuring charges

 

8.0

 

3.5

%

8.0

 

0.9

%

Operating income before restructuring charges

 

$

5.2

 

2.3

%

$

22.4

 

2.5

%

 



 

 

 

 

Consolidated

 

 

 

 

Three Months Ended
December 31, 2012

 

 

Year Ended December 31,
2012

 

 

 

 

 

 

Per Share (1)

 

 

 

 

Per Share (1)

 

Net loss from continuing operations, as reported

 

 

$

 (5.4

)

$

 (0.08

)

 

$

 (2.5

)

$

 (0.04

)

Restructuring charges

 

 

8.0

 

0.11

 

 

8.0

 

0.11

 

Tax impact of restructuring charges

 

 

(1.3

)

(0.02

)

 

(1.3

)

(0.02

)

Non-GAAP net income from continuing operations

 

 

$

 1.3

 

$

 0.02

 

 

$

 4.2

 

$

 0.05

 

 


(1) may not foot due to rounding

 

 

 

Consolidated

 

 

 

Three Months Ended
December 31, 2012

 

 

 

 

 

Cash flows from continuing operations, as reported

 

$

34.7

 

Purchases of property and equipment, net

 

(0.7

)

Free cash flow

 

$

34.0