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Exhibit 99.1

 

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Press Release

PRGX Global, Inc. Announces Fourth Quarter

and Full Year 2014 Financial Results

ATLANTA, March 3, 2015 — PRGX Global, Inc. (Nasdaq:PRGX), the world’s leading provider of accounts payable recovery audit services and the pioneer in Profit Discovery™, today announced its unaudited financial results for the fourth quarter and year ended December 31, 2014.

“The PRGX global team delivered another quarter of sequential Adjusted EBITDA growth despite continued revenue challenges in our core recovery audit business,” said Ron Stewart, president and chief executive officer. “Our Q4 Adjusted EBITDA results were in line with expectations as we made solid progress on rationalizing our overall expense structure.”

“In our Recovery Audit business, our claims production volume is increasing and we have a healthy backlog of new client spend to audit going into 2015; our challenge is to effectively manage rate and other pressures to maximize revenue generation,” said Mr. Stewart.

“As we continued to transition the Company throughout 2014 in an effort to realign and focus on future growth opportunities, I am particularly encouraged by the traction we are gaining with clients in Contract Compliance and Adjacent Services. We have added new global clients and continue to make progress in our emerging growth offerings which leverage our best-in-class data technology platform and experience for the benefit of our clients,” concluded Mr. Stewart.

Consolidated Results for the Three Months Ended December 31, 2014

Fourth quarter 2014 Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) was $6.4 million, or 15.4% of revenue, compared to the fourth quarter 2013 Adjusted EBITDA of $6.9 million, or 14.9% of revenue. This represents a 3% year-over-year improvement in quarterly Adjusted EBITDA as a percentage of revenue. Compared to the third quarter 2014 Adjusted EBITDA of $5.6 million, or 13.1% of revenue, the fourth quarter 2014 Adjusted EBITDA as a percentage of revenue increased 17.4%. Schedule 3 attached to this press release provides a reconciliation of net income (loss) to each of EBIT (Earnings Before Interest and Taxes), EBITDA and Adjusted EBITDA.

Consolidated revenue for the fourth quarter of 2014 decreased 11.2% to $41.3 million compared to $46.5 million for the same period last year. Adjusted for changes in foreign exchange rates, consolidated fourth quarter 2014 revenue decreased 8.4% compared to the same period in 2013.

Total cost of revenue for the fourth quarter of 2014 was $28.5 million, or 69.0% of revenue, compared to $30.2 million, or 65.0% of revenue, in the same period last year. This increase in cost of revenue as a percentage of

 

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revenue was primarily driven by lower revenue in the fourth quarter of 2014 coupled with continued investment in new growth platforms. On a constant dollar basis, adjusted for changes in foreign exchange rates, total cost of revenue for the fourth quarter of 2014 improved approximately $0.7 million, compared to the third quarter of 2014. SG&A expenses for the fourth quarter of 2014 decreased 33.6% to $9.3 million, compared to $14.0 million in the same period last year. Depreciation and amortization expenses were $2.4 million in the fourth quarter of 2014, compared to $3.3 million in the prior year fourth quarter. There were no impairment charges during the fourth quarter of 2014, whereas there were $4.2 million in impairment charges for the fourth quarter of 2013 due to the impairment of certain long-lived assets.

Net loss for the fourth quarter of 2014 was $(2.1) million, or $(0.08) per basic and diluted share, compared to a net loss of $(6.4) million, or $(0.22) per basic and diluted share, for the same period in 2013.

Net cash provided by operating activities for the fourth quarter of 2014 was $2.9 million, compared to $8.1 million in the fourth quarter of the prior year.

Consolidated Results for the Year Ended December 31, 2014

Consolidated revenue for the year ended December 31, 2014 decreased 15.9% to $164.2 million, compared to $195.2 million in the prior year. Excluding the decrease in Healthcare Claims Recovery Audit Services (HCRA) revenue, which represented approximately $14.3 million of the year-over-year change, the decrease was 9.4%. On a constant dollar basis, adjusted for changes in foreign exchange rates, consolidated revenue for the year ended December 31, 2014 decreased 15.1% compared to the year ended December 31, 2013 and excluding the HCRA revenue decreased 8.6%.

Total cost of revenue for the year ended December 31, 2014 was $116.0 million, a reduction of $10.1 million compared to $126.1 million in 2013. As a percentage of revenue, cost of revenue was 70.6% for the year ended December 31, 2014, compared to 64.6% in the prior year. The largest contributors to this increase in the cost of revenue as a percentage of revenue were the decline in revenue in the Recovery Audit Services segments and reduced auditing under the Medicare RAC program. SG&A expenses for the year ended December 31, 2014 were $40.8 million, compared to $49.2 million in the same period in the prior year, an improvement of $8.4 million. Depreciation and amortization expenses were $9.7 million for the year ended December 31, 2014, compared to $13.2 million in the prior year.

Adjusted EBITDA for the year ended December 31, 2014 was $16.3 million or 9.9% of revenue, compared to $29.4 million or 15.0% of revenue for 2013, a decline of $13.1 million, of which $5.0 million is attributable to the HCRA segment.

Net loss for the year ended December 31, 2014 was $(7.5) million, or $(0.26) per basic and diluted share, compared to a net loss of $(0.2) million, or $(0.01) per basic and diluted share in the prior year.

Net cash provided by operating activities for the year ended December 31, 2014 was $10.0 million compared to $18.4 million in the prior year.

 

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Liquidity

As of December 31, 2014, the Company had unrestricted cash and cash equivalents of $25.7 million, with $10.2 million held in the U.S. and the remainder held outside the U.S. The Company has no borrowings against its revolving credit facility and no debt outstanding.

Stock Repurchase Program

During the fourth quarter of 2014, the Company repurchased approximately 0.5 million shares of its outstanding common stock for an aggregate cost of $2.7 million. Since the February 2014 announcement of the Company’s stock repurchase program through February 27, 2015, the Company has repurchased 4.2 million shares, or 14.1% of its common stock outstanding as of the date of the announcement. As of February 27, 2015, the Company had 26.1 million shares of common stock outstanding.

Fourth Quarter Earnings Call

As previously announced, management will hold a conference call later this morning at 8:30 AM (Eastern time) to discuss the Company’s fourth quarter 2014 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 78920789.

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 March 31, 2015. 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 accounts payable recovery audit services. With over 1,400 employees, the Company operates and serves clients in more than 30 countries and provides its services to over 75% of the top 20 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 overall condition, growth initiatives and prospects, the Company’s claims production volume and expectations regarding backlog of spend to audit, the Company’s efforts to rationalize its expense structure, and the long term business objectives for the Company. Such forward-looking

 

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statements are not guarantees of future performance and are subject to risks, uncertainties and other factors that may cause the 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 effects of the Company’s decision to withdraw from the Medicare RAC rebid process, 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 14, 2014. 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 income (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 Operations

(Amounts in thousands, except per share data)

(Unaudited)

 

     Three Months     Twelve Months  
     Ended December 31,     Ended December 31,  
     2014     2013     2014     2013  

Revenue

   $ 41,322      $ 46,507      $ 164,192      $ 195,216   

Operating expenses:

        

Cost of revenue

     28,502        30,239        115,959        126,102   

Selling, general and administrative expenses

     9,283        13,974        40,788        49,200   

Depreciation of property and equipment

     1,520        2,162        6,216        8,231   

Amortization of intangible assets

     831        1,185        3,531        4,997   

Impairment charges

     —          4,207        —          4,207   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

  40,136      51,767      166,494      192,737   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

  1,186      (5,260   (2,302   2,479   

Foreign currency transaction (gains) losses on short-term intercompany balances

  930      41      2,003      (13

Interest expense (income), net

  (44   12      (77   (77

Other (income) loss

  57      —        57      —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

  243      (5,313   (4,285   2,569   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income tax expense

  2,388      1,084      3,241      2,755   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

$ (2,145 $ (6,397 $ (7,526 $ (186
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings (loss) per common share

$ (0.08 $ (0.22 $ (0.26 $ (0.01
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings (loss) per common share

$ (0.08 $ (0.22 $ (0.26 $ (0.01
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding:

Basic

  27,237      29,447      28,707      29,169   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

  27,237      29,447      28,707      29,169   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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SCHEDULE 2

PRGX Global, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

     December 31,     December 31,  
     2014     2013  
ASSETS   

Current assets:

    

Cash and cash equivalents

   $ 25,735      $ 43,700   

Restricted cash

     53        57   

Receivables:

    

Contract receivables, net

     35,182        38,079   

Employee advances and miscellaneous receivables, net

     1,993        2,242   
  

 

 

   

 

 

 

Total receivables

  37,175      40,321   

Prepaid expenses and other current assets

  3,421      3,917   
  

 

 

   

 

 

 

Total current assets

  66,384      87,995   

Property and equipment, net

  12,220      13,994   

Goodwill

  13,036      13,686   

Intangible assets, net

  9,439      13,582   

Deferred income taxes

  36      1,701   

Other assets

  1,667      1,871   
  

 

 

   

 

 

 

Total assets

$ 102,782    $ 132,829   
  

 

 

   

 

 

 
LIABILITIES AND SHAREHOLDERS’ EQUITY   

Current liabilities:

Accounts payable and accrued expenses

$ 7,397    $ 10,809   

Accrued payroll and related expenses

  15,415      15,415   

Refund liabilities and deferred revenue

  7,566      8,109   

Business acquisition obligations

  —        3,156   
  

 

 

   

 

 

 

Total current liabilities

  30,378      37,489   

Other long-term liabilities

  1,418      1,512   
  

 

 

   

 

 

 

Total liabilities

  31,796      39,001   
  

 

 

   

 

 

 

Shareholders’ equity:

Common stock

  268      294   

Additional paid-in capital

  590,067      604,806   

Accumulated deficit

  (520,912   (513,386

Accumulated other comprehensive income

  1,563      2,114   
  

 

 

   

 

 

 

Total shareholders’ equity

  70,986      93,828   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

$ 102,782    $ 132,829   
  

 

 

   

 

 

 

 

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SCHEDULE 3

PRGX Global, Inc. and Subsidiaries

Reconciliation of Net Income (Loss) to EBIT, EBITDA and Adjusted EBITDA

(Amounts in thousands)

(Unaudited)

 

     Three Months     Twelve Months  
     Ended December 31,     Ended December 31,  
     2014     2013     2014     2013  

Reconciliation of net income (loss) to EBIT, EBITDA and Adjusted EBITDA:

        

Net income (loss)

   $ (2,145   $ (6,397   $ (7,526   $ (186

Income tax expense

     2,388        1,084        3,241        2,755   

Interest expense (income), net

     (44     12        (77     (77
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT

  199      (5,301   (4,362   2,492   

Depreciation of property and equipment

  1,520      2,162      6,216      8,231   

Amortization of intangible assets

  831      1,185      3,531      4,997   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

  2,550      (1,954   5,385      15,720   

Impairment charges

  —        4,207      —        4,207   

Foreign currency transaction (gains) losses on short-term intercompany balances

  930      41      2,003      (13

Acquisition-related charges

  —        371      249      602   

Transformation severance and related expenses

  1,698      1,766      4,050      2,544   

Other (income) loss

  57      —        57      —     

Stock-based compensation

  1,123      2,517      4,532      6,294   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

$ 6,358    $ 6,948    $ 16,276    $ 29,354   
  

 

 

   

 

 

   

 

 

   

 

 

 

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     Twelve Months  
     Ended December 31,     Ended December 31,  
     2014     2013     2014     2013  

Cash flows from operating activities:

        

Net income (loss)

   $ (2,145   $ (6,397   $ (7,526   $ (186

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

        

Impairment charges

     —          4,207        —          4,207   

Depreciation and amortization

     2,351        3,347        9,747        13,228   

Amortization of deferred debt costs

     37        56        104        193   

Loss on sale of assets

     57        —          57        —     

Stock-based compensation expense

     1,123        2,517        4,532        6,294   

Foreign currency transaction (gains) losses on short-term intercompany balances

     930        41        2,003        (13

Decrease (increase) in receivables

     (4,232     4,894        927        6,815   

Increase (decrease) in accounts payable, accrued payroll and other accrued expenses

     1,166        318        (3,473     (9,895

Other, primarily changes in assets and liabilities

     3,630        (854     3,676        (2,219
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

  2,917      8,129      10,047      18,424   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

Business (acquisitions) divestitures

  1,100      —        1,100      —     

Purchases of property and equipment, net of disposals

  (1,135   (2,331   (4,709   (6,875
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used in) provided by investing activities

  (35   (2,331   (3,609   (6,875
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

Net proceeds from issuance of common stock

  —        —        —        4,118   

Repurchase of common stock

  (2,685   —        (22,685   —     

Other, net

  33      (3,959   (57   (8,743
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

  (2,652   (3,959   (22,742   (4,625
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rates on cash and cash equivalents

  (788   (546   (1,661   (1,030
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

  (558   1,293      (17,965   5,894   

Cash and cash equivalents at beginning of period

  26,293      42,407      43,700      37,806   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

$ 25,735    $ 43,700    $ 25,735    $ 43,700   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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SCHEDULE 5

PRGX Global, Inc. and Subsidiaries

Results by Operating Segment *

(Amounts in thousands)

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31,     December 31,  
     2014     2013     Change     2014     2013     Change  

Revenue

            

Recovery Audit Services - Americas

   $ 26,156      $ 30,650      $ (4,494   $ 106,533      $ 118,649      $ (12,116

Recovery Audit Services - Europe/Asia-Pacific

     11,527        12,640        (1,113     44,319        46,436        (2,117

Adjacent Services

     2,550        2,478        72        10,700        13,183        (2,483

Healthcare Claims Recovery Audit Services

     1,089        739        350        2,640        16,948        (14,308
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 41,322    $ 46,507    $ (5,185 $ 164,192    $ 195,216    $ (31,024
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenue

Recovery Audit Services - Americas

$ 18,015    $ 16,722    $ (1,293 $ 68,163    $ 65,977    $ (2,186

Recovery Audit Services - Europe/Asia-Pacific

  7,405      8,742      1,337      31,103      34,945      3,842   

Adjacent Services

  2,456      2,750      294      11,624      11,931      307   

Healthcare Claims Recovery Audit Services

  626      2,025      1,399      5,069      13,249      8,180   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 28,502    $ 30,239    $ 1,737    $ 115,959    $ 126,102    $ 10,143   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Selling, general and administrative expenses

Recovery Audit Services - Americas

$ 1,891    $ 3,414    $ 1,523    $ 10,211    $ 14,140    $ 3,929   

Recovery Audit Services - Europe/Asia-Pacific

  1,479      1,979      500      6,829      5,884      (945

Adjacent Services

  286      813      527      2,124      3,312      1,188   

Healthcare Claims Recovery Audit Services

  490      641      151      2,207      3,057      850   

Corporate

  5,137      7,127      1,990      19,417      22,807      3,390   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 9,283    $ 13,974    $ 4,691    $ 40,788    $ 49,200    $ 8,412   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation of property and equipment

Recovery Audit Services - Americas

$ 1,099    $ 1,479    $ 380    $ 4,711    $ 5,617    $ 906   

Recovery Audit Services - Europe/Asia-Pacific

  147      152      5      592      514      (78

Adjacent Services

  259      176      (83   722      652      (70

Healthcare Claims Recovery Audit Services

  15      355      340      191      1,448      1,257   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 1,520    $ 2,162    $ 642    $ 6,216    $ 8,231    $ 2,015   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Amortization of intangible assets

Recovery Audit Services - Americas

$ 501    $ 698    $ 197    $ 2,002    $ 2,792    $ 790   

Recovery Audit Services - Europe/Asia-Pacific

  284      337      53      1,195      1,508      313   

Adjacent Services

  46      150      104      334      697      363   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 831    $ 1,185    $ 354    $ 3,531    $ 4,997    $ 1,466   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Impairment charges

Recovery Audit Services - Americas

$ —      $ 2,702    $ 2,702    $ —      $ 2,702    $ 2,702   

Recovery Audit Services - Europe/Asia-Pacific

  —        —        —        —        —        —     

Adjacent Services

  —        71      71      —        71      71   

Healthcare Claims Recovery Audit Services

  —        1,434      1,434      —        1,434      1,434   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ —      $ 4,207    $ 4,207    $ —      $ 4,207    $ 4,207   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

Recovery Audit Services - Americas

$ 4,650    $ 5,635    $ (985 $ 21,446    $ 27,421    $ (5,975

Recovery Audit Services - Europe/Asia-Pacific

  2,212      1,430      782      4,600      3,585      1,015   

Adjacent Services

  (497   (1,482   985      (4,104   (3,480   (624

Healthcare Claims Recovery Audit Services

  (42   (3,716   3,674      (4,827   (2,240   (2,587

Corporate

  (5,137   (7,127   1,990      (19,417   (22,807   3,390   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 1,186    $ (5,260 $ 6,446    $ (2,302 $ 2,479    $ (4,781
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

Recovery Audit Services - Americas

$ 7,088    $ 10,849    $ (3,761 $ 29,507    $ 39,954    $ (10,447

Recovery Audit Services - Europe/Asia-Pacific

  3,359      2,461      898      7,672      5,842      1,830   

Adjacent Services

  (170   (1,042   872      (2,381   (1,792   (589

Healthcare Claims Recovery Audit Services

  (48   (1,844   1,796      (4,226   729      (4,955

Corporate

  (3,871   (3,476   (395   (14,296   (15,379   1,083   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 6,358    $ 6,948    $ (590 $ 16,276    $ 29,354    $ (13,078
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* The Recovery Audit Services - Americas segment represents recovery audit services, excluding Healthcare Claims Recovery Audit Services, provided in the United States, Canada and Latin America. The Recovery Audit Services - Europe/Asia-Pacific segment represents recovery audit services, excluding Healthcare Claims Recovery Audit Services, provided in Europe, Asia and the Pacific region. The Adjacent Services segment (formerly known as Profit Optimization services) represents financial advisory services and business analytics services. The Healthcare Claims Recovery Audit Services segment represents recovery audit services for healthcare claims, which consist primarily of services provided under subcontracts related to the Medicare Recovery Audit Contractor program.

 

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