Attached files

file filename
8-K - FORM 8-K - PRGX GLOBAL, INC.d484951d8k.htm

Exhibit 99.1

 

LOGO

Press Release

PRGX Global, Inc. Announces Third Quarter 2017 Financial Results

ATLANTA, November 2, 2017—PRGX Global, Inc. (Nasdaq:PRGX), a global leader in Recovery Audit and Spend Analytics services, today announced its unaudited financial results for the third quarter and nine months ended September 30, 2017.

“We are pleased to report a fifth consecutive quarter of growth from continuing operations, with revenue growth of 19% and Adjusted EBITDA increasing over 31% on a year-over- year constant dollar basis. Our core recovery audit business continues to perform well, with year-over-year growth in every region around the world on a constant dollar basis. Adjacent services revenue for the quarter grew 33% on a constant dollar year-over-year basis,” said Ron Stewart, president and chief executive officer. “We recently announced a multi-year SaaS technology and managed services contract based on our Lavante SIM platform. This solution underscores our competitive advantage resulting from integrating recovery audit data and knowledge with market-leading technology applications to deliver expanded client value on a large scale.”

“Driven by our improved recovery audit performance and growing portfolio of services, we are seeing increased activity with both current and prospective clients, which is supporting a growing pipeline of opportunities. Based on three solid quarters of performance and our outlook for the fourth quarter, we remain confident that we will meet our 2017 guidance of year-over-year double-digit revenue and Adjusted EBITDA growth on a constant dollar basis,” concluded Stewart.

Consolidated Results from Continuing Operations for the Three Months Ended September 30, 2017

Consolidated revenue from continuing operations for the third quarter of 2017 was $42.5 million, compared to $35.1 million for the same period last year, an increase of 20.8%. On a constant dollar basis adjusted for changes in foreign exchange rates, revenue increased by 19.2% in the third quarter of 2017, compared to the same period in the prior year. On a constant dollar basis, revenue from the Recovery Audit Services segments increased 18.9% in the third quarter of 2017 compared to the same period in 2016. Third quarter 2017 revenue from the Adjacent Services segment was $0.9 million compared to $0.7 million in 2016, an increase of 35.7%.

Total cost of revenue from continuing operations for the third quarter of 2017 was $26.7 million, or 62.8% of revenue, compared to $22.3 million, or 63.7% of revenue, in the same period last year.

SG&A expenses from continuing operations for the third quarter of 2017 were $12.2 million, compared to $9.9 million in the prior year period. The increase in SG&A expenses was primarily attributable to operating costs associated with the Lavante and Cost & Compliance Associates (“C&CA”) acquired businesses that were not in the prior year, and increased stock-based compensation.

 

1


LOGO

Consolidated net income from continuing operations for the third quarter of 2017 was $1.1 million, or $0.05 per basic and diluted share, compared to net income of $2.1 million, or $0.10 per basic and diluted share, for the same period in 2016. The year-over-year change was primarily driven by an increase in income tax expense in 2017 compared to 2016. In 2016, the Company released its valuation allowance in New Zealand generating a one-time tax benefit in the period.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) from continuing operations for the third quarter of 2017 was $6.4 million, or 15.1% of revenue, compared to Adjusted EBITDA of $4.7 million, or 13.5% of revenue, in the third quarter of 2016, an increase of $1.7 million or 35.3%. 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 Nine Months Ended September 30, 2017

Consolidated revenue from continuing operations for the nine months ended September 30, 2017 was $114.5 million, compared to $101.7 million for the same period last year, an increase of 12.7%. On a constant dollar basis adjusted for changes in foreign exchange rates, revenue increased by 13.0% in the nine months ended September 30, 2017, compared to the same period in the prior year. On a constant dollar basis, revenue from the Recovery Audit Services segments increased 12.4% in the nine months ended September 30, 2017 compared to the same period in 2016. On a constant dollar basis, revenue from the Adjacent Services segment increased 34.8% for the nine months ended September 30, 2017 compared to the same period in 2016.

Total cost of revenue from continuing operations for the nine months ended September 30, 2017 was $75.3 million, or 65.7% of revenue, compared to $67.4 million, or 66.3% of revenue, in the same period last year.

SG&A expenses from continuing operations for the nine months ended September 30, 2017 were $34.1 million, compared to $28.4 million in the prior year period. The increase in SG&A expenses was primarily attributable to operating costs associated with the Lavante and C&CA acquired businesses that were not in the prior year, and increased stock-based compensation.

Consolidated net loss from continuing operations for the nine months ended September 30, 2017 was $1.1 million, or $0.05 per basic and diluted share, compared to net income of $2.0 million, or $0.09 per basic and diluted share, for the same period in 2016.

Adjusted EBITDA from continuing operations for the nine months ended September 30, 2017 was $12.0 million, or 10.5% of revenue, compared to Adjusted EBITDA of $10.2 million, or 10.0% of revenue, for the same period in the prior year, an increase of $1.8 million or 17.2%. Schedule 3 attached to this press release provides a reconciliation of net income (loss) to each of EBIT, EBITDA and Adjusted EBITDA.

Cash Flow and Liquidity

Net cash provided by operating activities for the third quarter of 2017 was $2.3 million compared to $0.7 million in the third quarter of the prior year, and $3.6 million for the nine months ended September 30, 2017 compared to $6.2 million in the same period in the prior year.

 

2


LOGO

At September 30, 2017, the Company had unrestricted cash and cash equivalents of $11.9 million, and borrowings of $13.6 million against its $35.0 million revolving credit facility.

As of October 31, 2017, the Company had approximately 22.4 million shares of common stock outstanding.

Third Quarter Earnings Call

As previously announced, management will hold a conference call later today at 5:00 PM (Eastern time) to discuss the Company’s third quarter 2017 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 7396677.

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, 2018. 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 1,500 employees, the Company serves clients in more than 30 countries and provides its services to 75% of the top 20 global retailers and over 30% 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, PRGX 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

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, the level of client and prospect interest in the Company’s services, and the Company’s expectations regarding its ability to achieve its 2017 guidance. 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

 

3


LOGO

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 16, 2017. 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

 

4


LOGO

SCHEDULE 1

PRGX Global, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Amounts in thousands, except per share data)

(Unaudited)

 

     Three Months
Ended September 30,
    Nine Months
Ended September 30,
 
     2017     2016     2017     2016  

Revenue

   $ 42,467     $ 35,137     $ 114,546     $ 101,661  

Operating expenses:

        

Cost of revenue

     26,675       22,367       75,306       67,444  

Selling, general and administrative expenses

     12,189       9,883       34,149       28,351  

Depreciation of property and equipment

     1,133       1,376       3,462       3,824  

Amortization of intangible assets

     722       393       2,166       1,182  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     40,719       34,019       115,083       100,801  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     1,748       1,118       (537     860  

Foreign currency transaction gains on short-term intercompany balances

     (418     (165     (1,927     (976

Interest expense (income), net

     142       (14     227       (55

Other loss (income)

     17       (168     (177     (140
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before income taxes

     2,007       1,465       1,340       2,031  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income tax expense (benefit)

     930       (685     2,436       (21
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) from continuing operations

   $ 1,077     $ 2,150     $ (1,096   $ 2,052  
  

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued operations:

        

(Loss) income from discontinued operations

   $ (344   $ 133     $ (1,029   $ (914

Other (income) loss

     —         —         —         —    

Income tax expense (benefit)

     —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income from discontinued operations

     (344     133       (1,029     (914

Net income (loss)

   $ 733     $ 2,283     $ (2,125   $ 1,138  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings (loss) per common share:

        

Basic from continuing operations

   $ 0.05     $ 0.10     $ (0.05   $ 0.09  

Basic from discontinued operations

     (0.02     0.01       (0.05     (0.04
  

 

 

   

 

 

   

 

 

   

 

 

 

Total basic earnings (loss) per common share

   $ 0.03     $ 0.11     $ (0.10   $ 0.05  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings (loss) per common share:

        

Diluted from continuing operations

   $ 0.05     $ 0.10     $ (0.05   $ 0.09  

Diluted from discontinued operations

     (0.02     0.01       (0.05     (0.04
  

 

 

   

 

 

   

 

 

   

 

 

 

Total diluted earnings (loss) per common share

   $ 0.03     $ 0.11     $ (0.10   $ 0.05  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding:

        

Basic

     22,498       21,847       22,225       22,084  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     22,761       21,874       22,225       22,114  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

5


LOGO

SCHEDULE 2

PRGX Global, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

     September 30,
2017
    December 31,
2016
 

ASSETS

 

Current assets:

    

Cash and cash equivalents

   $ 11,932     $ 15,723  

Restricted cash

     109       47  

Receivables:

    

Contract receivables, net

     35,015       31,464  

Employee advances and miscellaneous receivables, net

     2,263       2,184  
  

 

 

   

 

 

 

Total receivables

     37,278       33,648  

Prepaid expenses and other current assets

     4,837       3,363  
  

 

 

   

 

 

 

Total current assets

     54,156       52,781  

Property and equipment, net

     15,369       12,236  

Goodwill

     22,824       13,823  

Intangible assets, net

     8,840       10,998  

Deferred income taxes

     2,212       2,269  

Other assets

     1,149       1,367  
  

 

 

   

 

 

 

Total assets

   $ 104,550     $ 93,474  
  

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

Current liabilities:

    

Accounts payable and accrued expenses

   $ 7,669     $ 7,299  

Accrued payroll and related expenses

     14,801       13,868  

Refund liabilities and deferred revenue

     9,496       9,230  

Short-term debt

     48       3,600  

Other current liabilities

     2,077       2,078  
  

 

 

   

 

 

 

Total current liabilities

     34,091       36,075  

Refund liabilities

     775       804  

Long-term debt

     13,677       —    

Other long-term liabilities

     2,389       4,205  
  

 

 

   

 

 

 

Total liabilities

     50,932       41,084  
  

 

 

   

 

 

 

Shareholders’ equity:

    

Common stock

     224       218  

Additional paid-in capital

     578,695       575,118  

Accumulated deficit

     (525,358     (523,233

Accumulated other comprehensive income (loss)

     57       287  
  

 

 

   

 

 

 

Total shareholders’ equity

     53,618       52,390  
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 104,550     $ 93,474  
  

 

 

   

 

 

 

 

6


LOGO

SCHEDULE 3

PRGX Global, Inc. and Subsidiaries

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

(Amounts in thousands)

(Unaudited)

 

     Three Months
Ended September 30,
    Nine Months
Ended September 30,
 
     2017     2016     2017     2016  

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

        

Net income (loss)

   $ 733     $ 2,283     $ (2,125   $ 1,138  

Income tax expense (benefit)

     930       (685     2,436       (21

Interest expense (income), net

     142       (14     227       (55
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT

     1,805       1,584       538       1,062  

Depreciation of property and equipment

     1,135       1,381       3,468       3,835  

Amortization of intangible assets

     722       393       2,166       1,182  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     3,662       3,358       6,172       6,079  

Foreign currency transaction gains on short-term intercompany balances

     (418     (165     (1,927     (976

Other loss (income)

     17       (168     (177     (140

Transformation severance and related expenses

     692       138       1,592       1,233  

Stock-based compensation

     2,107       1,424       5,362       3,224  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 6,060     $ 4,587     $ 11,022     $ 9,420  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA from continuing operations

   $ 6,402     $ 4,731     $ 12,045     $ 10,269  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA from discontinued operations

   $ (342   $ (144   $ (1,023   $ (849
  

 

 

   

 

 

   

 

 

   

 

 

 

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.

 

7


LOGO

SCHEDULE 4

PRGX Global, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Amounts in thousands)

(Unaudited)

 

     Three Months
Ended September 30,
    Nine Months
Ended September 30,
 
     2017     2016     2017     2016  

Cash flows from operating activities:

        

Net Income (loss)

   $ 733     $ 2,283       (2,125   $ 1,138  

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

        

Depreciation and amortization

     1,855       1,773       5,628       5,017  

Stock-based compensation expense

     2,107       1,425       5,362       3,224  

Foreign currency transaction gains on short-term intercompany balances

     (418     (165     (1,927     (976

(Increase) decrease in receivables

     (2,867     (2,736     (714     (469

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

     (2,319     589       (2,035     1,253  

Other, primarily changes in assets and liabilities

     3,191       (2,457     (632     (3,013
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     2,282       712       3,557       6,174  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

        

Purchases of property and equipment, net of disposals

     (2,390     (2,510     (6,433     (4,648

Acquisition of businesses, net of cash acquired

     —         —         (10,128     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (2,390     (2,510     (16,561     (4,648
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

        

Repurchase of common stock

     —         (104     —         (3,762

Borrowing under line of credit

     —         —         10,000       —    

Other, net

     —         (75     605       (86
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     —         (179     10,605       (3,848
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rates on cash and cash equivalents

     (830     (27     (1,392     370  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (938     (2,004     (3,791     (1,952

Cash and cash equivalents at beginning of period

     12,870       15,174       15,723       15,122  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 11,932     $ 13,170     $ 11,932     $ 13,170  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

8


LOGO

SCHEDULE 5

PRGX Global, Inc. and Subsidiaries

Results by Operating Segment *

(Amounts in thousands)

(Unaudited)

 

     Three Months Ended
Sept 30,
    Nine Months Ended
Sept 30,
 
     2017     2016     Change     2017     2016     Change  

Revenue

            

Recovery Audit Services - Americas

   $ 30,705     $ 25,719     $ 4,986     $ 81,641     $ 72,408     $ 9,233  

Recovery Audit Services - Europe/Asia-Pacific

     10,837       8,736       2,101       29,441       26,683       2,758  

Adjacent Services

     925       682       243       3,464       2,570       894  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 42,467     $ 35,137     $ 7,330     $ 114,546     $ 101,661     $ 12,885  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenue

            

Recovery Audit Services - Americas

   $ 18,552     $ 14,787     $ 3,765     $ 51,154     $ 44,737     $ 6,417  

Recovery Audit Services - Europe/Asia-Pacific

     6,650       6,284       366       19,553       18,657       896  

Adjacent Services

     1,473       1,296       177       4,599       4,050       549  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 26,675     $ 22,367     $ 4,308     $ 75,306     $ 67,444     $ 7,862  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Selling, general and administrative expenses

            

Recovery Audit Services - Americas

   $ 2,662     $ 2,132     $ 530     $ 7,320     $ 6,434     $ 886  

Recovery Audit Services - Europe/Asia-Pacific

     2,114       1,265       849       5,247       4,402       845  

Adjacent Services

     910       321       589       3,040       666       2,374  

Corporate Support

     6,503       6,165       338       18,542       16,849       1,693  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 12,189     $ 9,883     $ 2,306     $ 34,149     $ 28,351     $ 5,798  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation of property and equipment

            

Recovery Audit Services - Americas

   $ 789     $ 935     $ (146   $ 2,478     $ 2,863     $ (385

Recovery Audit Services - Europe/Asia-Pacific

     161       141       20       453       379       74  

Adjacent Services

     183       300       (117     531       582       (51
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 1,133     $ 1,376     $ (243   $ 3,462     $ 3,824     $ (362
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Amortization of intangible assets

            

Recovery Audit Services - Americas

   $ 329     $ 373     $ (44   $ 986     $ 1,118     $ (132

Recovery Audit Services - Europe/Asia-Pacific

     —         —         —         —         —         —    

Adjacent Services

     393       20       373       1,180       64       1,116  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 722     $ 393     $ 329     $ 2,166     $ 1,182     $ 984  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

            

Recovery Audit Services - Americas

   $ 8,373     $ 7,492     $ 881     $ 19,703     $ 17,256     $ 2,447  

Recovery Audit Services - Europe/Asia-Pacific

     1,912       1,046       866       4,188       3,246       942  

Adjacent Services

     (2,034     (1,255     (779     (5,886     (2,792     (3,094

Corporate Support

     (6,503     (6,165     (338     (18,542     (16,849     (1,693
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 1,748     $ 1,118     $ 630     $ (537   $ 860     $ (1,398
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

            

Recovery Audit Services - Americas

   $ 9,540     $ 8,894     $ 646     $ 23,480     $ 21,754     $ 1,726  

Recovery Audit Services - Europe/Asia-Pacific

     2,433       1,376       1,057       5,223       3,908       1,315  

Adjacent Services

     (1,198     (797     (401     (3,870     (2,008     (1,862

Corporate Support

     (4,373     (4,742     369       (12,788     (13,385     597  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 6,402     $ 4,731     $ 1,671     $ 12,045     $ 10,269     $ 1,776  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* 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.

 

9