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8-K - FORM 8-K - PRGX GLOBAL, INC.d575474d8k.htm

Exhibit 99.1

 

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Press Release

PRGX Global, Inc. Announces Second Quarter

2013 Financial Results

Highlights

 

   

Q2 Adjusted EBITDA of $7.9M represents an increase of 3.7% over Q2 2012 and was 15.7% of Q2 2013 revenue

 

   

Q2 revenue of $50.2M increased 11.3% and Adjusted EBITDA increased 80.6%, compared to Q1 2013

 

   

New Services revenue of $10.0M represented 20% of consolidated Q2 2013 revenue, the highest share to date

 

   

Continue to audit under Medicare RAC Program subcontracts as company awaits refined RFQ from CMS

ATLANTA, July 29, 2013 — PRGX Global, Inc. (Nasdaq:PRGX), the world’s leading provider of recovery audit services and the pioneer in Profit Discovery™, today announced its unaudited financial results for the second quarter ended June 30, 2013.

“PRGX bounced back after a difficult first quarter. While the top line remains below where we would like, Adjusted EBITDA recovered nicely in the second quarter as the PRGX team continues to demonstrate its ability to deliver in a challenging environment,” said Romil Bahl, president and chief executive officer.

“In our Recovery Audit Services segments, the Americas resolved the majority of issues that negatively impacted our retail and commercial businesses in Q1. In addition, the Americas business continued to drive out costs, growing gross profits 4.9% over Q2 2012 on comparable revenue; this represents an increase of 256 basis points in gross margin percentage. We believe that our Europe/Asia-Pacific business troughed in the first half of 2013, and expect the team’s actions will drive improved performance in this segment in the second half of the year,” continued Bahl.

“Positive New Services segment performance was headlined by our Healthcare Claims Recovery Audit business which performed well and also benefitted from processing of claims delayed in prior periods. While we are not yet ready to suggest that the double-digit million-dollar quarterly revenue from this segment is sustainable, we are pleased to have achieved our first ever $10 million New Services revenue quarter, and remain excited about the potential of our growth businesses,” concluded Bahl.

 

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Consolidated Results for the Three Months Ended June 30, 2013

Consolidated revenue for the second quarter of 2013 decreased 2.8% to $50.2 million compared to $51.7 million in the same prior year period. After adjusting for changes in foreign exchange rates, consolidated second quarter revenue in 2013 decreased 2.4% compared to the same period in 2012.

Recovery Audit Services – Americas revenue for the second quarter of 2013 decreased 0.7% to $29.4 million compared to $29.6 million in the same period in the prior year. On a constant dollar basis, adjusted for changes in foreign exchange rates, Recovery Audit Services – Americas revenue was essentially flat compared to 2012.

Recovery Audit Services – Europe/Asia-Pacific revenue for the second quarter of 2013 decreased 19.7% to $10.8 million compared to $13.4 million in the same period in the prior year. On a constant dollar basis, adjusted for changes in foreign exchange rates, Recovery Audit Services – Europe/Asia-Pacific revenue decreased by 18.9% compared to 2012.

New Services revenue for the second quarter of 2013 increased 16.0% to $10.0 million compared to $8.7 million in the same period in the prior year. The New Services segment represents Healthcare Claims Recovery Audit services and our Profit Optimization services.

Total cost of revenue for the second quarter of 2013 was $31.5 million, or 62.8% of revenue, compared to $33.3 million, or 64.5% of revenue, in the same period last year. This decrease in total cost of revenue resulted from decreases in both of the Company’s recovery audit segments driven by the expanded use of its Next-Generation Recovery Audit service model. New Services cost of revenue, on an absolute dollar and percentage of revenue basis, also decreased compared to the prior year period. SG&A for the second quarter of 2013 was $12.6 million, or 25.2% of revenue, compared to $12.7 million, or 24.6% of revenue, in the same period last year. Depreciation and amortization expenses were $3.4 million in the second quarter of 2013 compared to $3.0 million in the prior year second quarter.

Net earnings for the second quarter of 2013 were $1.8 million, or $0.06 per basic and diluted share, compared to net earnings of $1.0 million, or $0.04 per basic and diluted share, for the same period in 2012. Net cash used in operating activities for the second quarter of 2013 was $4.0 million compared to net cash used in operating activities of $1.1 million in the second quarter of 2012. The increase in net cash used in operating activities was due primarily to an increase in unbilled revenue associated with growth in Healthcare Claims Recovery Audit services.

Adjusted EBITDA for the second quarter of 2013 was $7.9 million compared to $7.6 million of Adjusted EBITDA for the same period in 2012. Second quarter 2013 Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization (EBITDA) excluding a charge of $1.2 million related to stock-based compensation, $0.6 million of transformation severance and related expenses, a less than $0.1 million charge for acquisition obligations classified as compensation, and $0.2 million of foreign currency losses on short-term intercompany balances. The comparable Adjusted EBITDA amount for the second quarter of 2012 excludes from EBITDA for such period a $1.2 million charge for stock-based compensation, $0.3 million in wage claim costs, $0.3 million of transformation severance and related expenses, a $0.1 million charge for acquisition obligations classified as

 

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compensation, and $0.5 million of foreign currency gains on short-term intercompany balances. Schedule 3 attached to this press release provides a reconciliation of net earnings (loss) to each of EBIT (earnings before interest and taxes), EBITDA and Adjusted EBITDA.

Consolidated Results for the Six Months Ended June 30, 2013

Consolidated revenue for the six months ended June 30, 2013 decreased 7.7% to $95.3 million compared to $103.3 million in the same prior year period. After adjusting for changes in foreign exchange rates, consolidated revenue for the six months ended June 30, 2013 decreased 7.1% compared to the same period in 2012.

Recovery Audit Services – Americas revenue for the six months ended June 30, 2013 decreased 4.7% to $55.6 million compared to $58.4 million in the same period in the prior year. On a constant dollar basis, adjusted for changes in foreign exchange rates, Recovery Audit Services – Americas revenue for the six month period decreased by 4.2% compared to the same period in 2012.

Recovery Audit Services – Europe Asia/Pacific revenue for the six months ended June 30, 2013 decreased 21.4% to $21.8 million compared to $27.7 million in the same period in the prior year. On a constant dollar basis, adjusted for changes in foreign exchange rates, Recovery Audit Services – Europe Asia/Pacific revenue for the six month period decreased by 20.2% compared to the same period in 2012.

New Services revenue for the six months ended June 30, 2013 increased 4.1% to $17.9 million compared to $17.2 million in the same period in the prior year.

Total cost of revenue for the six months ended June 30, 2013 was $61.9 million, or 65.0% of revenue, compared to $67.5 million, or 65.4% of revenue, in the same period in the prior year. Cost of revenue as a percentage of revenue declined in the Recovery Audit Services – Americas and New Services segments, but increased in the Recovery Audit Services – Europe/Asia-Pacific segment. SG&A for the six months ended June 30, 2013 was $24.3 million, or 25.5% of revenue, compared to $25.3 million, or 24.5% of revenue, in the same period in the prior year. Depreciation and amortization expenses were $6.6 million for the six months ended June 30, 2013 compared to $6.9 million in the same period in the prior year.

Net earnings for both the six months ended June 30, 2013 and 2012 were $1.3 million, or $0.05 per basic and diluted share. Net cash used in operating activities for the six months ended June 30, 2013 was $3.1 million compared to net cash provided by operating activities of $0.9 million in the same period last year.

Adjusted EBITDA for the six months ended June 30, 2013 was $12.2 million compared to $14.4 million of Adjusted EBITDA for the same period in 2012. For the six months ended June 30, 2013, Adjusted EBITDA was earnings before interest, taxes, depreciation and amortization (EBITDA) excluding a charge of $2.5 million related to stock-based compensation, $0.6 million of transformation severance and related expenses, a $0.1 million charge for acquisition obligations classified as compensation, and $0.6 million of foreign currency losses on short-term intercompany balances. The comparable Adjusted EBITDA amount for the six months ended June 30, 2012 excludes from EBITDA for such period a $2.6 million charge for stock-based compensation, $0.6 million of wage claim costs, $0.5 million of transformation severance and related expenses, a $0.2 million charge for

 

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acquisition obligations classified as compensation and $0.2 million of foreign currency losses on short-term intercompany balances. Schedule 3 attached to this press release provides a reconciliation of net earnings to each of EBIT, EBITDA and Adjusted EBITDA.

Liquidity

At June 30, 2013, the Company had unrestricted cash and cash equivalents of $31.1 million and had no borrowings against its revolving credit facility. Bank debt outstanding at quarter end was $4.5 million, which represented the outstanding balance on a variable rate term loan due quarterly through December 2013, with a final payment due in January 2014.

Second Quarter Earnings Call

As previously announced, management will hold a conference call tomorrow morning at 8:30 AM (Eastern time) to discuss the Company’s second quarter 2013 financial results. To access the conference call, listeners in the U.S. and Canada should dial (877) 755-7423 at least 5 minutes prior to the start of the conference. Listeners outside the U.S. and Canada should dial (678) 894-3069. To be admitted to the call, listeners should use passcode 12461983.

This teleconference will also be audiocast on the Internet at www.prgx.com (click on “Events & Presentations” under “Investors”). A replay of the audiocast will be available at the same location on www.prgx.com beginning approximately two hours after the conclusion of the live audiocast, extending through September 30, 2013. Please note that the Internet audiocast is “listen-only.” Microsoft Windows Media Player is required to access the live audiocast and the replay and can be downloaded from www.microsoft.com/windows/mediaplayer.

About PRGX Global, Inc.

Headquartered in Atlanta, Georgia, PRGX Global, Inc. is the world’s leading provider of recovery audit services. With over 1,700 employees, the Company operates and serves clients in more than 30 countries and provides its services to over 75% of the top 30 global retailers. PRGX is also pioneering Profit Discovery, a unique combination of audit, analytics and advisory services that improves client financial performance. For additional information, please visit PRGX at www.prgx.com.

Forward-Looking Statements

In addition to historical information, this press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include both implied and express statements regarding the Company’s expectations for the remainder of 2013, auditing under its current Medicare RAC subcontracts, the outcome of the rebid of Medicare RAC program contracts and associated transitions and resulting impacts on the Company’s financial results, and the expected benefits of the Company’s redesigned recovery audit service delivery model. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors that may cause the

 

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actual results, performance or achievements of the Company to differ materially from the historical results or from any results expressed or implied by such forward-looking statements. Risks that could affect the Company’s future performance include revenue that does not meet expectations or justify costs incurred, the Company’s ability to develop material sources of new revenue in addition to revenue from its core recovery audit services, changes in the market for the Company’s services, the Company’s ability to retain and attract qualified personnel, changes to Medicare and Medicaid recovery audit contractor programs and the outcome of the rebid of the Medicare RAC program contracts, the Company’s ability to integrate recent and future acquisitions, uncertainty in the credit markets, the Company’s ability to maintain compliance with its financial covenants, client bankruptcies, loss of major clients, and other risks generally applicable to the Company’s business. For a discussion of other risk factors that may impact the Company’s business, please see the Company’s filings with the Securities and Exchange Commission, including its Form 10-K filed on March 13, 2013. The Company disclaims any obligation or duty to update or modify these forward-looking statements.

Non-GAAP Financial Measures

EBIT, EBITDA and Adjusted EBITDA are all “non-GAAP financial measures” presented as supplemental measures of the Company’s performance. They are not presented in accordance with accounting principles generally accepted in the United States, or GAAP. The Company believes these measures provide additional meaningful information in evaluating its performance over time, and that the rating agencies and a number of lenders use EBITDA and similar measures for similar purposes. In addition, a measure similar to Adjusted EBITDA is used in the restrictive covenants contained in the Company’s secured credit facility. However, EBIT, EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of the Company’s results as reported under GAAP. In addition, in evaluating EBIT, EBITDA and Adjusted EBITDA, you should be aware that, as described above, the adjustments may vary from period to period and in the future the Company will incur expenses such as those used in calculating these measures. The Company’s presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. Schedule 3 to this press release provides a reconciliation of net earnings (loss) to each of EBIT, EBITDA and Adjusted EBITDA.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: PRGX Global, Inc.

CONTACT: PRGX Global, Inc.

investor-relations@prgx.com

Phone: 770-779-3011

 

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SCHEDULE 1

PRGX Global, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Amounts in thousands, except per share data)

(Unaudited)

 

     Three Months      Six Months  
     Ended June 30,      Ended June 30,  
     2013      2012      2013     2012  

Revenue

   $ 50,205       $ 51,658       $ 95,306      $ 103,307   

Operating expenses:

          

Cost of revenue

     31,521         33,312         61,928        67,530   

Selling, general and administrative expenses

     12,630         12,696         24,341        25,333   

Depreciation of property and equipment

     2,027         1,579         4,035        3,092   

Amortization of intangible assets

     1,332         1,459         2,608        3,786   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total operating expenses

     47,510         49,046         92,912        99,741   
  

 

 

    

 

 

    

 

 

   

 

 

 

Operating income

     2,695         2,612         2,394        3,566   

Foreign currency transaction losses on short-term intercompany balances

     225         497         582        158   

Interest expense (income), net

     53         529         (164     1,033   
  

 

 

    

 

 

    

 

 

   

 

 

 

Earnings before income taxes

     2,417         1,586         1,976        2,375   
  

 

 

    

 

 

    

 

 

   

 

 

 

Income tax expense

     586         584         642        1,081   
  

 

 

    

 

 

    

 

 

   

 

 

 

Net earnings

   $ 1,831       $ 1,002       $ 1,334      $ 1,294   
  

 

 

    

 

 

    

 

 

   

 

 

 

Basic earnings per common share

   $ 0.06       $ 0.04       $ 0.05      $ 0.05   
  

 

 

    

 

 

    

 

 

   

 

 

 

Diluted earnings per common share

   $ 0.06       $ 0.04       $ 0.05      $ 0.05   
  

 

 

    

 

 

    

 

 

   

 

 

 

Weighted average common shares outstanding:

          

Basic

     29,053         25,257         28,912        25,283   
  

 

 

    

 

 

    

 

 

   

 

 

 

Diluted

     29,436         25,809         29,366        25,787   
  

 

 

    

 

 

    

 

 

   

 

 

 

 

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SCHEDULE 2

PRGX Global, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

     June 30,     December 31,  
     2013     2012  
ASSETS   

Current assets:

    

Cash and cash equivalents

   $ 31,102      $ 37,806   

Restricted cash

     187        65   

Receivables:

    

Contract receivables, net

     44,133        45,127   

Employee advances and miscellaneous receivables, net

     1,215        1,352   
  

 

 

   

 

 

 

Total receivables

     45,348        46,479   

Prepaid expenses and other current assets

     4,822        3,853   
  

 

 

   

 

 

 

Total current assets

     81,459        88,203   

Property and equipment, net

     18,251        19,574   

Goodwill

     13,611        13,669   

Intangible assets, net

     15,734        18,399   

Deferred income taxes

     1,626        1,552   

Other assets

     1,947        2,189   
  

 

 

   

 

 

 

Total assets

   $ 132,628      $ 143,586   
  

 

 

   

 

 

 
LIABILITIES AND SHAREHOLDERS’ EQUITY   

Current liabilities:

    

Accounts payable and accrued expenses

   $ 11,486      $ 14,136   

Accrued payroll and related expenses

     11,903        20,874   

Refund liabilities and deferred revenue

     7,842        8,530   

Current portion of debt

     4,500        3,000   

Business acquisition obligations

     3,086        4,218   
  

 

 

   

 

 

 

Total current liabilities

     38,817        50,758   

Long-term debt

     —          3,000   

Noncurrent business acquisition obligations

     —          2,479   

Other long-term liabilities

     1,692        2,697   
  

 

 

   

 

 

 

Total liabilities

     40,509        58,934   
  

 

 

   

 

 

 

Shareholders’ equity:

    

Common stock

     292        279   

Additional paid-in capital

     601,194        594,045   

Accumulated deficit

     (511,866     (513,200

Accumulated other comprehensive income

     2,499        3,528   
  

 

 

   

 

 

 

Total shareholders’ equity

     92,119        84,652   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 132,628      $ 143,586   
  

 

 

   

 

 

 

 

 

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SCHEDULE 3

PRGX Global, Inc. and Subsidiaries

Reconciliation of Net Earnings to EBIT, EBITDA and Adjusted EBITDA

(Amounts in thousands)

(Unaudited)

 

     Three Months      Six Months  
     Ended June 30,      Ended June 30,  
     2013      2012      2013     2012  

Reconciliation of net earnings to EBIT, EBITDA and Adjusted EBITDA:

          

Net earnings

   $ 1,831       $ 1,002       $ 1,334      $ 1,294   

Income tax expense

     586         584         642        1,081   

Interest expense (income), net

     53         529         (164     1,033   
  

 

 

    

 

 

    

 

 

   

 

 

 

EBIT

     2,470         2,115         1,812        3,408   

Depreciation of property and equipment

     2,027         1,579         4,035        3,092   

Amortization of intangible assets

     1,332         1,459         2,608        3,786   
  

 

 

    

 

 

    

 

 

   

 

 

 

EBITDA

     5,829         5,153         8,455        10,286   

Foreign currency transaction losses on short-term intercompany balances

     225         497         582        158   

Acquisition obligations classified as compensation

     44         94         100        195   

Transformation severance and related expenses

     617         276         617        518   

Wage claim costs

     —           328         —          577   

Stock-based compensation

     1,155         1,239         2,473        2,640   
  

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted EBITDA

   $ 7,870       $ 7,587       $ 12,227      $ 14,374   
  

 

 

    

 

 

    

 

 

   

 

 

 

EBIT, EBITDA and Adjusted EBITDA are all “non-GAAP financial measures” presented as supplemental measures of our performance. They are not presented in accordance with accounting principles generally accepted in the United States, or GAAP. The Company believes these measures provide additional meaningful information in evaluating the Company’s performance over time, and that the rating agencies and a number of lenders use EBIT, EBITDA and similar measures for similar purposes. In addition, a measure similar to Adjusted EBITDA is used in the restrictive covenants contained in the Company’s secured credit facility. However, EBIT, EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of our results as reported under GAAP. In addition, in evaluating EBIT, EBITDA and Adjusted EBITDA, you should be aware that in the future we will incur expenses such as those used in calculating these measures. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items.

 

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SCHEDULE 4

PRGX Global, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Amounts in thousands)

(Unaudited)

 

     Three Months     Six Months  
     Ended June 30,     Ended June 30,  
     2013     2012     2013     2012  

Cash flows from operating activities:

        

Net earnings

   $ 1,831      $ 1,002      $ 1,334      $ 1,294   

Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:

        

Depreciation and amortization

     3,359        3,038        6,643        6,878   

Amortization of deferred debt costs

     45        45        91        91   

Stock-based compensation expense

     1,155        1,239        2,473        2,640   

Foreign currency transaction losses on short-term intercompany balances

     225        497        582        158   

(Increase) decrease in receivables

     (6,414     (5,983     256        (4,796

Decrease in accounts payable, accrued payroll and other accrued expenses

     (2,772     (184     (12,110     (5,666

Other, primarily changes in assets and liabilities

     (1,411     (758     (2,402     271   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used in) provided by operating activities

     (3,982     (1,104     (3,133     870   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

        

Business acquisitions

     —          (440     —          (1,437

Purchases of property and equipment, net of disposals

     (782     (2,253     (2,989     (4,220
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (782     (2,693     (2,989     (5,657
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

        

Net proceeds from issuance of common stock

     —          —          4,118        —     

Other, net

     (1,446     (2,208     (3,946     (3,779
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used in) provided by financing activities

     (1,446     (2,208     172        (3,779
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rates on cash and cash equivalents

     (475     (350     (754     66   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (6,685     (6,355     (6,704     (8,500

Cash and cash equivalents at beginning of period

     37,787        18,192        37,806        20,337   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 31,102      $ 11,837      $ 31,102      $ 11,837   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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SCHEDULE 5

PRGX Global, Inc. and Subsidiaries

Results by Operating Segment *

(Amounts in thousands)

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2013     2012     Change     2013     2012     Change  

Revenue

            

Recovery Audit Services - Americas

   $ 29,392      $ 29,592      $ (200   $ 55,634      $ 58,405      $ (2,771

Recovery Audit Services - Europe/Asia-Pacific

     10,770        13,411        (2,641     21,787        27,716        (5,929

New Services

     10,043        8,655        1,388        17,885        17,186        699   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 50,205      $ 51,658      $ (1,453   $ 95,306      $ 103,307      $ (8,001
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenue

            

Recovery Audit Services - Americas

   $ 15,210      $ 16,070      $ 860      $ 29,560      $ 32,022      $ 2,462   

Recovery Audit Services - Europe/Asia-Pacific

     9,178        10,006        828        18,423        21,081        2,658   

New Services

     7,133        7,236        103        13,945        14,427        482   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 31,521      $ 33,312      $ 1,791      $ 61,928      $ 67,530      $ 5,602   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Selling, general and administrative expenses

            

Recovery Audit Services - Americas

   $ 5,186      $ 5,225      $ 39      $ 9,506      $ 10,087      $ 581   

Recovery Audit Services - Europe/Asia-Pacific

     1,019        868        (151     1,536        2,119        583   

New Services

     1,814        1,516        (298     3,295        2,913        (382

Corporate

     4,611        5,087        476        10,004        10,214        210   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 12,630      $ 12,696      $ 66      $ 24,341      $ 25,333      $ 992   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation of property and equipment

            

Recovery Audit Services - Americas

   $ 1,356      $ 990      $ (366   $ 2,724      $ 1,905      $ (819

Recovery Audit Services - Europe/Asia-Pacific

     126        87        (39     238        127        (111

New Services

     545        502        (43     1,073        1,060        (13
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 2,027      $ 1,579      $ (448   $ 4,035      $ 3,092      $ (943
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Amortization of intangible assets

            

Recovery Audit Services - Americas

   $ 698      $ 767      $ 69      $ 1,396      $ 2,353      $ 957   

Recovery Audit Services - Europe/Asia-Pacific

     452        490        38        848        1,029        181   

New Services

     182        202        20        364        404        40   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 1,332      $ 1,459      $ 127      $ 2,608      $ 3,786      $ 1,178   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

            

Recovery Audit Services - Americas

   $ 6,942      $ 6,540      $ 402      $ 12,448      $ 12,038      $ 410   

Recovery Audit Services - Europe/Asia-Pacific

     (5     1,960        (1,965     742        3,360        (2,618

New Services

     369        (801     1,170        (792     (1,618     826   

Corporate

     (4,611     (5,087     476        (10,004     (10,214     210   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 2,695      $ 2,612      $ 83      $ 2,394      $ 3,566      $ (1,172
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

            

Recovery Audit Services - Americas

   $ 9,076      $ 8,648      $ 428      $ 16,648      $ 16,986      $ (338

Recovery Audit Services - Europe/Asia-Pacific

     1,110        2,558        (1,448     2,365        4,594        (2,229

New Services

     1,140        229        911        745        368        377   

Corporate

     (3,456     (3,848     392        (7,531     (7,574     43   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 7,870      $ 7,587      $ 283      $ 12,227      $ 14,374      $ (2,147
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* The Recovery Audit Services - Americas segment represents recovery audit services, excluding New Services, provided in the United States, Canada and Latin America. The Recovery Audit Services - Europe/Asia-Pacific segment represents recovery audit services provided in Europe, Asia and the Pacific region. The New Services segment represents Healthcare Claims Recovery Audit services and Profit Optimization services.

 

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