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8-K - 8-K - PRGX GLOBAL, INC.d206653d8k.htm

Exhibit 99.1

 

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Press Release

PRGX Global, Inc. Announces Second Quarter

2016 Financial Results

ATLANTA, July 26, 2016 — PRGX Global, Inc. (Nasdaq:PRGX), a global leader in Recovery Audit and Spend Analytics services, today announced its unaudited financial results for the second quarter and six months ended June 30, 2016.

“The highlight of our second quarter results is the performance of our largest business, Retail Recovery Audit, which grew revenue by 4.4% in the Americas and 1.5% globally compared to the same period last year on a constant dollar basis. Our investments in audit acceleration and high performance technology infrastructure significantly contributed to this success and we believe we are well positioned to continue this growth into the second half of 2016,” said Ron Stewart, president and chief executive officer.

“After experiencing contracting delays in the first quarter, we also had a strong second quarter in our Adjacent Services business, growing revenue by 30% compared to the prior year on a constant dollar basis and after adjusting for the sale of our document service business in 2015,” continued Stewart.

“During the second quarter, we continued to make solid progress on our path to sustainable revenue growth with revenues essentially flat year over year on a constant dollar basis and adjusted for the sale of the document services business. We continue to invest in our European audit operations, global business development resources and emerging growth platforms as we position the company for second half and longer term revenue growth,” concluded Stewart.

Consolidated Results from Continuing Operations for the Three Months Ended June 30, 2016

Consolidated revenue from continuing operations for the second quarter of 2016 was $35.3 million compared to $37.0 million for the same period last year. On a constant dollar basis adjusted for changes in foreign exchange rates, revenue decreased by 1.8% in 2016 compared to the same period in 2015. Revenue for the Americas Recovery Audit segment in the second quarter of 2016 decreased 0.9% compared to the second quarter of 2015. On a constant dollar basis, Recovery Audit - Americas revenue increased 1.3% after excluding revenue from a large client that filed bankruptcy in 2015. Revenue for the Europe/Asia-Pacific Recovery Audit segment declined 12.6% for the second quarter of 2016 compared to the same period in 2015. On a constant dollar basis, the year over year decline in Recovery Audit – Europe/Asia - Pacific revenue was 7.5%. Revenue for the Adjacent Services segment decreased 13.3% in the second quarter of 2016 compared to the same period in 2015. On a constant dollar basis, Adjacent Services revenue increased 30.2% after excluding the document services business we sold in the third quarter of 2015.

Total cost of revenue from continuing operations for the second quarter of 2016 was $23.4 million, or 66.4% of revenue, compared to $24.1 million, or 65.2% of revenue, in the same period last year. This increase was primarily related to the Company’s costs associated with new regional senior operations leaders that were not in place in the second quarter of 2015, which were partially offset by operational cost and productivity improvements.

 

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SG&A expenses from continuing operations for the second quarter of 2016 were $9.6 million compared to $9.2 million in the prior year period. This increase was primarily driven by increases in compensation costs including investments associated with new sales personnel who were not in place in the second quarter of 2015, and an increase in legal and U.S. healthcare benefit costs.

Consolidated net income (loss) from continuing operations for the three months ended June 30, 2016 was essentially breakeven compared to net income of $1.8 million, or $0.07 per basic and diluted share, for the same period in 2015.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) from continuing operations for the second quarter of 2016 was $3.5 million, or 9.9% of revenue, compared to Adjusted EBITDA of $6.1 million, or 16.4% of revenue, in the second quarter of 2015. 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 Results from Continuing Operations for the Six Months Ended June 30, 2016

Consolidated revenue from continuing operations for the six months ended June 30, 2016 was $66.5 million compared to $70.0 million for the same period last year. On a constant dollar basis adjusted for changes in foreign exchange rates, revenue decreased by 2.2% in 2016 compared to the same period in 2015. Revenue for the Americas Recovery Audit segment for the six months ended June 30, 2016 decreased 2.3% compared to the same period in 2015. On a constant dollar basis, Recovery Audit - Americas revenue was essentially unchanged after excluding revenue from the large client that filed bankruptcy in 2015. Revenue for the Europe/Asia-Pacific Recovery Audit segment declined 6.8% for the six months ended June 30, 2016 compared to the same period in 2015. On a constant dollar basis, the decline in Recovery Audit – Europe/Asia - Pacific revenue was 2.1%. Revenue for the Adjacent Services segment decreased $1.1 million for the six months ended June 30, 2016 compared to the same period in 2015. On a constant dollar basis, Adjacent Services revenue was essentially unchanged excluding the documents service business which was sold in the third quarter of 2015.

Total cost of revenue from continuing operations for the six months ended June 30, 2016 was $45.1 million, or 67.9% of revenue, compared to $47.3 million, or 67.6% of revenue, for the same period in 2015.

SG&A expenses from continuing operations for the six months ended June 30, 2016 were $18.5 million compared to $17.1 million in the prior year period.

Consolidated net income (loss) from continuing operations for the six months ended June 30, 2016 was essentially breakeven compared to a net loss of $(0.4) million, or loss per basic and diluted share of $(0.02), for the same period in 2015.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) from continuing operations for the six months ended June 30, 2016 was $5.5 million, or 8.3% of revenue, compared to Adjusted EBITDA of $9.2 million, or 13.1% of revenue, in the 2015 period. 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.


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Cash Flow and Liquidity

Net cash provided by operating activities for the second quarter of 2016 was $0.5 million compared to $2.0 million in the second quarter of the prior year, and $5.5 million for the six months ended June 30, 2016 compared to $7.5 million in the same period in the prior year. At June 30, 2016, the Company had unrestricted cash and cash equivalents of $15.2 million, no borrowings against its $20.0 million revolving credit facility, and no bank debt outstanding.

Stock Repurchase Program

Since the February 2014 announcement of the Company’s stock repurchase program, as of June 30, 2016, the Company has repurchased 8.6 million shares, or 28.6% of its common stock outstanding on the date of the announcement. As previously announced in October 2015, the Company’s Board of Directors approved a $10 million increase (to $50 million) in the program and extended the duration of the program to December 31, 2016. The Company repurchased 0.9 million shares of its outstanding common stock for an aggregate cost of $3.6 million in the six months ended June 30, 2016. As of July 20, 2016, the Company had approximately 21.8 million shares of common stock outstanding.

Second 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 second quarter 2016 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 45168761.

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, 2016. 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

PRGX Global, Inc. is a global leader in Recovery Audit and Spend Analytics services. With over 1,400 employees, the Company serves clients in more than 30 countries and provides its services to 75% of the top 20 global retailers and over 20% of the top 50 companies in the Fortune 500. PRGX delivers more than $1 billion in cash flow improvement for its clients each year. The creator of the recovery audit industry more than 40 years ago, PRGX continues to innovate through technology and expanded service offerings. In addition to Recovery Audit, the Company provides Contract Compliance, Spend Analytics and Supplier Information Management services to improve clients’ financial performance and manage risk. For additional information on PRGX, please visit www.prgx.com


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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 and growth prospects, the Company’s execution of its business strategy, and the Company’s investments in, and opportunities associated with, audit acceleration and its high performance technology infrastructure, European audit operations, global business development resources and emerging growth platforms. Such forward-looking 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, 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 15, 2016. 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     Six Months  
     Ended June 30,     Ended June 30,  
     2016     2015     2016     2015  

Revenue

   $ 35,291      $ 36,995      $ 66,524      $ 69,980   

Operating expenses:

        

Cost of revenue

     23,431        24,111        45,077        47,278   

Selling, general and administrative expenses

     9,620        9,185        18,468        17,129   

Depreciation of property and equipment

     1,216        1,294        2,448        2,573   

Amortization of intangible assets

     395        754        789        1,500   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     34,662        35,344        66,782        68,480   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     629        1,651        (258     1,500   

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

     196        (416     (811     1,276   

Interest expense (income), net

     (12     (53     (41     (95

Other (income) loss

     18        —          28        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes

     427        2,120        566        319   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income tax expense

     460        296        664        751   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) from continuing operations

   $ (33   $ 1,824      $ (98   $ (432
  

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued operations:

        

Income (loss) from discontinued operations

   $ (559   $ (727   $ (1,046   $ (1,428

Other (income) loss

     —          —          —          —     

Income tax expense (benefit)

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) from discontinued operations

     (559     (727     (1,046     (1,428

Net income (loss)

   $ (592   $ 1,097      $ (1,144   $ (1,860
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings (loss) per common share:

        

Basic from continuing operations

     (0.00     0.07        (0.00     (0.02

Basic from discontinued operations

     (0.03     (0.03     (0.05     (0.05
  

 

 

   

 

 

   

 

 

   

 

 

 

Total basic earnings (loss) per common share

     (0.03     0.04        (0.05     (0.07
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings (loss) per common share:

        

Diluted from continuing operations

     (0.00     0.07        (0.00     (0.02

Diluted from discontinued operations

     (0.03     (0.03     (0.05     (0.05
  

 

 

   

 

 

   

 

 

   

 

 

 

Total diluted earnings (loss) per common share

     (0.03     0.04        (0.05     (0.07
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding:

        

Basic

     21,969        26,497        22,202        26,446   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     21,969        26,553        22,202        26,446   
  

 

 

   

 

 

   

 

 

   

 

 

 


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SCHEDULE 2

PRGX Global, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

     June 30,     December 31,  
     2016     2015  
ASSETS   

Current assets:

    

Cash and cash equivalents

   $ 15,174      $ 15,122   

Restricted cash

     144        48   

Receivables:

    

Contract receivables, net

     25,882        28,543   

Employee advances and miscellaneous receivables, net

     1,675        1,740   
  

 

 

   

 

 

 

Total receivables

     27,557        30,283   

Prepaid expenses and other current assets

     2,911        2,323   
  

 

 

   

 

 

 

Total current assets

     45,786        47,776   

Property and equipment, net

     11,120        11,580   

Goodwill

     11,729        11,810   

Intangible assets, net

     5,874        6,684   

Deferred income taxes

     1,628        1,361   

Other assets

     1,283        1,180   

Noncurrent assets of discontinued operations

     —          —     
  

 

 

   

 

 

 

Total assets

   $ 77,420      $ 80,391   
  

 

 

   

 

 

 
LIABILITIES AND SHAREHOLDERS’ EQUITY     

Current liabilities:

    

Accounts payable and accrued expenses

   $ 6,834      $ 5,966   

Accrued payroll and related expenses

     10,920        11,278   

Refund liabilities and deferred revenue

     8,913        7,887   

Other current liabilities

     39        1,004   
  

 

 

   

 

 

 

Total current liabilities

     26,706        26,135   

Refund liabilities

     786        752   

Other long-term liabilities

     1,322        1,089   
  

 

 

   

 

 

 

Total liabilities

     28,814        27,976   
  

 

 

   

 

 

 

Shareholders’ equity:

    

Common stock

     218        227   

Additional paid-in capital

     573,363        575,532   

Accumulated deficit

     (525,282     (524,138

Accumulated other comprehensive income

     307        794   
  

 

 

   

 

 

 

Total shareholders’ equity

     48,606        52,415   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 77,420      $ 80,391   
  

 

 

   

 

 

 


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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     Six Months  
     Ended June 30,     Ended June 30,  

Reconciliation of net loss to EBIT, EBITDA

and Adjusted EBITDA:

   2016     2015     2016     2015  

Net income (loss)

   $ (592   $ 1,097      $ (1,144   $ (1,860

Income tax expense

     460        296        664        751   

Interest expense (income), net

     (12     (53     (41     (95
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT

     (144     1,340        (521     (1,204

Depreciation of property and equipment

     1,219        1,304        2,455        2,596   

Amortization of intangible assets

     395        754        789        1,500   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     1,470        3,398        2,723        2,892   

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

     196        (416     (811     1,276   

Other Gains and Losses

     18        —          28        —     

Transformation severance and related expenses

     557        562        1,095        708   

Stock-based compensation

     1,035        2,017        1,799        3,149   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 3,276      $ 5,561      $ 4,834      $ 8,025   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA from continuing operations

   $ 3,500      $ 6,067      $ 5,537      $ 9,220   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA from discontinued operations

   $ (224   $ (506   $ (703   $ (1,195
  

 

 

   

 

 

   

 

 

   

 

 

 

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,  
     2016     2015     2016     2015  

Cash flows from operating activities:

        

Net Income (loss)

   $ (592   $ 1,097      $ (1,144   $ (1,861

Adjustments to reconcile net loss to net cash provided by operating activities:

        

Depreciation and amortization

     1,600        2,058        3,244        4,096   

Stock-based compensation expense

     1,026        2,017        1,799        3,149   

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

     196        (416     (811     1,276   

(Increase)/Decrease in receivables

     (816     309        2,267        6,393   

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

     (692     (1,729     663        (5,162

Other, primarily changes in assets and liabilities

     (178     (1,278     (556     (409
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     544        2,058        5,462        7,482   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

        

Purchases of property and equipment, net of disposals

     (1,115     (1,081     (2,138     (2,197
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (1,115     (1,081     (2,138     (2,197
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

        

Repurchase of common stock

     (1,034     (4,852     (3,658     (10,340

Other, net

     (95     (229     (11     (235
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used in) provided by financing activities

     (1,129     (5,081     (3,669     (10,575
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rates on cash and cash equivalents

     1,175        398        397        (763
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (525     (3,706     52        (6,053

Cash and cash equivalents at beginning of period

     15,699        23,388        15,122        25,735   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 15,174      $ 19,682      $ 15,174      $ 19,682   
  

 

 

   

 

 

   

 

 

   

 

 

 


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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,  
     2016     2015     Change     2016     2015     Change  

Revenue

            

Recovery Audit Services - Americas

   $ 25,122      $ 25,350      $ (228   $ 46,689      $ 47,767      $ (1,078

Recovery Audit Services - Europe/Asia-Pacific

     8,698        9,950        (1,252     17,947        19,255        (1,308

Adjacent Services

     1,471        1,695        (224     1,888        2,958        (1,070
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 35,291      $ 36,995      $ (1,704   $ 66,524      $ 69,980      $ (3,456
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenue

            

Recovery Audit Services - Americas

   $ 15,614      $ 15,162      $ (452   $ 29,938      $ 30,133      $ 195   

Recovery Audit Services - Europe/Asia-Pacific

     6,261        6,607        346        12,373        13,044        671   

Adjacent Services

     1,556        2,342        786        2,766        4,101        1,335   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 23,431      $ 24,111      $ 680      $ 45,077      $ 47,278      $ 2,201   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Selling, general and administrative expenses

            

Recovery Audit Services - Americas

   $ 2,171      $ 2,442      $ 271      $ 4,310      $ 3,963      $ (347

Recovery Audit Services - Europe/Asia-Pacific

     1,608        1,360        (248     3,138        2,926        (212

Adjacent Services

     216        198        (18     336        398        62   

Corporate

     5,625        5,185        (440     10,684        9,842        (842
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 9,620      $ 9,185      $ (435   $ 18,468      $ 17,129      $ (1,339
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation of property and equipment

            

Recovery Audit Services - Americas

   $ 936      $ 979      $ 43      $ 1,928      $ 1,948      $ 20   

Recovery Audit Services - Europe/Asia-Pacific

     140        153        13        238        306        68   

Adjacent Services

     140        162        22        282        319        37   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 1,216      $ 1,294      $ 78      $ 2,448      $ 2,573      $ 125   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Amortization of intangible assets

            

Recovery Audit Services - Americas

   $ 373      $ 441      $ 68      $ 745      $ 882      $ 137   

Recovery Audit Services - Europe/Asia-Pacific

     —          280        280        —          553        553   

Adjacent Services

     22        33        11        44        65        21   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 395      $ 754      $ 359      $ 789      $ 1,500      $ 711   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

            

Recovery Audit Services - Americas

   $ 6,028      $ 6,326      $ (298   $ 9,768      $ 10,841      $ (1,073

Recovery Audit Services - Europe/Asia-Pacific

     689        1,550        (861   $ 2,198      $ 2,426        (228

Adjacent Services

     (463     (1,040     577      $ (1,540   $ (1,925     385   

Corporate

     (5,625     (5,185     (440     (10,684     (9,842     (842
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 629      $ 1,651      $ (1,022   $ (258   $ 1,500      $ (1,758
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

            

Recovery Audit Services - Americas

   $ 7,613      $ 7,854      $ (241   $ 12,861      $ 13,835      $ (974

Recovery Audit Services - Europe/Asia-Pacific

     855        2,186        (1,331     2,532        3,553        (1,021

Adjacent Services

     (301     (831     530        (1,214     (1,511     297   

Corporate

     (4,667     (3,142     (1,525     (8,642     (6,658     (1,984
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 3,500      $ 6,067      $ (2,567   $ 5,537      $ 9,219      $ (3,682
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* The Recovery Audit Services - Americas segment represents retail, commercial and contract compliance recovery audit services provided in the United States, Canada and Latin America. The Recovery Audit Services - Europe/Asia-Pacific segment represents retail, commercial and contract compliance recovery audit services provided in Europe, Asia and the Pacific region. The Adjacent Services segment represents spend analytics and supplier information management services.