exv99w1
Exhibit 99.1
Press Release
PRGX Global, Inc. Announces
Second Quarter 2011 Financial Results
Operating Highlights
|
|
Achieved seventh consecutive quarter of year-over-year revenue growth |
|
|
|
Q2 revenues of $50.7M; H1 revenues of $101.4M represents 17% growth over H1 2010 |
|
|
|
Achieved third consecutive quarter of year-over-year Adj. EBITDA growth |
|
|
|
Q2 Adj. EBITDA of $5.6M; H1 Adj. EBITDA of $11.1M represents 43% growth over H1 2010 |
ATLANTA, July 25, 2011 PRGX Global, Inc. (Nasdaq:PRGX), the worlds 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, 2011.
I am pleased to report our seventh consecutive quarter of year-over-year growth, with revenues of
more than $50 million, up more than 11% over the previous years second quarter, said Romil Bahl,
president and chief executive officer. Achieving more than $50 million in revenue for the third
consecutive quarter is especially notable given the individually significant claims and client
audit accelerations that occurred in the Americas during Q1. This quarter marks, yet again, how
much the business has strengthened over the past two years.
Continued Bahl, Our recovery audit teams continue to demonstrate success in the field with strong
renewal rates globally and some impressive wins, especially in Europe/Asia-Pacific. The New
Services segment more than doubled quarterly revenue over the previous year, with projects underway
at large clients across our Spend Optimization, Fraud Monitoring and Profit Performance client
value propositions. And the Healthcare team continues to ramp up its CMS Medicare RAC program work.
Altogether, our teams are executing our strategy and building a platform for sustainable growth.
Discussion of Consolidated Results for Three Months Ended June 30, 2011
Consolidated revenues for the second quarter of 2011 increased 11.4% to $50.7 million compared
to $45.5 million in the same prior year period. After adjusting for changes in foreign exchange
rates, consolidated second quarter revenues in 2011 increased 6.0% compared to the same period in
2010.
Total cost of revenues was $34.5 million in the second quarter of 2011 compared to $30.9 million in
the same period last year. Gross margin in the second quarter of 2011 was 31.9%, compared to 32.0%
in the second quarter of 2010 and 31.8% in the first quarter of 2011. SG&A for the second quarter
of 2011 was $12.3 million compared to $10.3 million in the second quarter of 2010 and $12.4 million
in the first quarter of 2011. The increase in SG&A in the second quarter of 2011 over the 2010
period was primarily due to strategic hires to support New Services, severance and other costs
related to the Companys service delivery model transformation, and incentive compensation
accruals.
Net earnings for the second quarter of 2011 were $0.7 million, or $0.03 per basic and diluted
share, compared to net earnings of $0.04 million, or $0.00 per basic and diluted share for the same
period in 2010. Net cash provided by operating activities for the three months ended June 30, 2011
was $4.0 million compared to $3.1 million in the second quarter of 2010.
Adjusted EBITDA for the second quarter of 2011 was $5.6 million compared to $5.4 million for the
same period in 2010. For the second quarter of 2011, Adjusted EBITDA was earnings before interest,
taxes, depreciation and amortization (EBITDA), excluding a charge of $1.3 million related to
stock-based compensation, $0.4 million of foreign currency gains on intercompany balances, $0.3
million of charges incurred as part of the Companys service delivery model transformation, and a
$0.1 million charge for acquisition obligations classified as compensation. Comparable Adjusted
EBITDA for the second quarter of 2010 excluded a $1.1 million charge for stock-based compensation,
$1.1 million of foreign currency losses on intercompany balances, and a $0.2 million charge for
acquisition obligations classified as compensation. (Schedule 3 attached to this press release
provides a reconciliation of net earnings (loss) to each of EBITDA and Adjusted EBITDA.)
Our third consecutive quarter of year-over-year Adjusted EBITDA growth is another indication of
the strengthening of the new PRGX. As planned, our previously announced $20 million investment
program is nearly complete, and the results are starting to show. Our global recovery audit
business has delivered $2.5 million in additional Adjusted EBITDA in the first half of 2011 over
the previous year, in part due to our delivery model redesign efforts reducing our cost-to-serve.
And while our New Services segment overall is still approaching break-even, several of the
underlying services are already profitable. All in all, these results represent the power of our
broader range of services which is helping us bring more value to clients, win in the marketplace
and deliver with more consistency for our investors, concluded Bahl.
Discussion of Segment Results for Three Months Ended June 30, 2011
Recovery Audit Services Americas revenues decreased 6.6% for the second quarter of 2011 to
$27.9 million compared to $29.9 million in the same period last year. On a constant dollar basis,
adjusted for changes in foreign exchange rates, Recovery Audit Services Americas second quarter
2011 revenues decreased 8.8% compared to 2010s second quarter. A portion of this decrease is
attributable to audit accelerations that benefited the first quarter of 2011.
2
Recovery Audit Services Europe Asia/Pacific revenues for the second quarter of 2011 were $15.8
million compared to $13.0 million in the prior years second quarter, an increase of 21.6%. On a
constant-dollar basis, adjusted for changes in foreign exchange rates, Recovery Audit Services
Europe Asia/Pacific second quarter 2011 revenues increased 7.7% compared to 2010.
New Services revenues for the 2011 second quarter were $7.1 million, more than 2.5 times the prior
years second quarter revenues of $2.7 million. The New Services segment now represents almost 14%
of consolidated revenue.
Discussion of Consolidated Results for Six Months Ended June 30, 2011
Consolidated revenues for the six months ended June 30, 2011 increased 16.8% to $101.4 million
compared to $86.8 million in the same prior year period. After adjusting for changes in foreign
exchange rates, consolidated revenues for the six months ended June 30, 2011 increased 12.8%
compared to the same period in 2010.
Total cost of revenues was $69.1 million in the first half of 2011 compared to $60.8 million in the
same period last year, yielding a gross margin of 31.9% in the first half of 2011 compared to 30.0%
in the first half of 2010. SG&A for the six months ended June 30, 2011 was $24.7 million compared
to $20.3 million in the same period in 2010. The increase in SG&A in the first half of 2011 was
primarily due to strategic hires to support New Services, severance and other costs related to the
Companys service delivery model transformation, and incentive compensation accruals.
Net earnings for the six months ended June 30, 2011 were $1.1 million, or $0.04 per basic and
diluted share, compared to a net loss of ($3.4 million), or ($0.14) per basic and diluted share for
the same period in 2010. The 2010 six month net loss was partially attributable to $1.7 million of
foreign currency losses on intercompany balances and a $1.4 million debt extinguishment loss. Net
cash provided by operating activities for the six months ended June 30, 2011 was $10.2 million
compared to a ($0.3 million) use of cash in the same period in 2010. Most of this difference
resulted from working capital improvements.
Adjusted EBITDA for the six months ended June 30, 2011 was $11.1 million compared to $7.8 million
for the same period in 2010. For the first half of 2011, Adjusted EBITDA was earnings before
interest, taxes, depreciation and amortization (EBITDA), excluding a charge of $2.2 million related
to stock-based compensation, $0.9 million of foreign currency gains on intercompany balances, $1.1
million of charges incurred as part of the Companys service delivery model transformation, and a
$0.2 million charge for acquisition obligations classified as compensation. Comparable Adjusted
EBITDA for the first half of 2010 excluded a $1.9 million charge for stock-based compensation, $1.7
million of foreign currency losses on intercompany balances and a $0.2 million charge for
acquisition obligations classified as compensation. (Schedule 3 attached to this press release
provides a reconciliation of net earnings (loss) to each of EBITDA and Adjusted EBITDA.)
3
Liquidity
At June 30, 2011, the Company had unrestricted cash and cash equivalents of $22.9 million and
had no borrowings against its revolving credit facility. Total debt outstanding at quarter end was
$10.5 million, which represented the outstanding balance on a variable rate term loan due quarterly
through 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 Companys second quarter 2011 financial results. To access the
conference call, listeners in the U.S. and Canada should dial 800-435-1261 at least 5 minutes prior
to the start of the conference. Listeners outside the U.S. and Canada should dial 617-614-4076. To
be admitted to the call, listeners should use passcode 87832798. A replay of the call will be
available approximately two hours after the conclusion of the live call, extending through August
26, 2011. To access the replay, dial 888-286-8010 (U.S. and Canada) or 617-801-6888 (outside the
U.S. and Canada). The passcode for the replay is 50573468.
This teleconference will also be audiocast on the Internet at www.prgx.com (click on Audio
Archives 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 August 26, 2011. 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 worlds leading provider of
recovery audit services. With more than 1,400 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. Beyond its core retail practice, PRGX is
actively pursuing initiatives to expand into new markets, most notably healthcare. For additional
information, please visit PRGX at www.prgx.com.
Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA are both non-GAAP financial measures presented as supplemental
measures of the Companys 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 Companys secured credit facility. However, EBITDA and Adjusted EBITDA have limitations as
analytical tools, and you should not consider them in isolation, or as substitutes for analysis of
the Companys results as reported under GAAP. In addition, in evaluating EBITDA and Adjusted
EBITDA, you should be aware that,
4
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 Companys 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 EBITDA and Adjusted EBITDA.
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 Companys financial condition,
growth strategy, investment program, business development efforts, service offerings and service
delivery models. 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 Companys
future performance include revenues that do not meet expectations or justify costs incurred, the
Companys ability to develop material sources of new revenue in addition to revenues from its core
accounts payable recovery audit services, changes in the market for the Companys services, the
Companys ability to retain and attract qualified personnel, changes to Medicare and Medicaid
recovery audit contractor programs, the Companys ability to integrate recent and future
acquisitions, uncertainty in the credit markets, the Companys ability to maintain compliance with
its financial covenants, client bankruptcies, loss of major clients, and other risks generally
applicable to the Companys business. For a discussion of other risk factors that may impact the
Companys business, please see the Companys filings with the Securities and Exchange Commission,
including its Form 10-K filed on March 16, 2011. The Company disclaims any obligation or duty to
update or modify these forward-looking statements.
This news release was distributed by GlobeNewswire, www.globenewswire.com
CONTACT: PRGX Global, Inc.
investor-relations@prgx.com
Phone: 770-779-3011
5
SCHEDULE 1
PRGX Global, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share data)
(Unaudited)
|
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|
|
|
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|
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|
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Three Months |
|
|
Six Months |
|
|
|
Ended June 30, |
|
|
Ended June 30, |
|
|
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
Revenues |
|
$ |
50,704 |
|
|
$ |
45,507 |
|
|
$ |
101,422 |
|
|
$ |
86,836 |
|
Cost of revenues |
|
|
34,523 |
|
|
|
30,936 |
|
|
|
69,117 |
|
|
|
60,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
|
16,181 |
|
|
|
14,571 |
|
|
|
32,305 |
|
|
|
26,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
12,297 |
|
|
|
10,344 |
|
|
|
24,727 |
|
|
|
20,343 |
|
Depreciation and amortization |
|
|
2,343 |
|
|
|
2,202 |
|
|
|
4,645 |
|
|
|
4,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
1,541 |
|
|
|
2,025 |
|
|
|
2,933 |
|
|
|
1,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency transaction (gains) losses on
intercompany balances |
|
|
(431 |
) |
|
|
1,091 |
|
|
|
(879 |
) |
|
|
1,712 |
|
Interest expense, net |
|
|
478 |
|
|
|
271 |
|
|
|
825 |
|
|
|
655 |
|
Loss on debt extinguishment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income taxes |
|
|
1,494 |
|
|
|
663 |
|
|
|
2,987 |
|
|
|
(2,336 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
784 |
|
|
|
628 |
|
|
|
1,905 |
|
|
|
1,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
|
$ |
710 |
|
|
$ |
35 |
|
|
$ |
1,082 |
|
|
$ |
(3,400 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per common share |
|
$ |
0.03 |
|
|
$ |
0.00 |
|
|
$ |
0.04 |
|
|
$ |
(0.14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per common share |
|
$ |
0.03 |
|
|
$ |
0.00 |
|
|
$ |
0.04 |
|
|
$ |
(0.14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
24,522 |
|
|
|
23,624 |
|
|
|
24,391 |
|
|
|
23,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
24,949 |
|
|
|
23,806 |
|
|
|
24,742 |
|
|
|
23,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE 2
PRGX Global, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
December 31, |
|
|
|
2011 |
|
|
2010 |
|
|
|
(Unaudited) |
|
|
|
|
|
ASSETS
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
22,904 |
|
|
$ |
18,448 |
|
Restricted cash |
|
|
67 |
|
|
|
64 |
|
Receivables: |
|
|
|
|
|
|
|
|
Contract receivables, net |
|
|
38,017 |
|
|
|
35,893 |
|
Employee advances and miscellaneous receivables, net |
|
|
1,383 |
|
|
|
827 |
|
|
|
|
|
|
|
|
Total receivables |
|
|
39,400 |
|
|
|
36,720 |
|
|
|
|
|
|
|
|
|
|
Prepaid expenses and other current assets |
|
|
4,799 |
|
|
|
3,622 |
|
|
|
|
|
|
|
|
Total current assets |
|
|
67,170 |
|
|
|
58,854 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
17,645 |
|
|
|
15,695 |
|
Goodwill |
|
|
5,196 |
|
|
|
5,196 |
|
Intangible assets, net |
|
|
21,806 |
|
|
|
23,855 |
|
Deferred income taxes |
|
|
681 |
|
|
|
403 |
|
Other assets |
|
|
2,579 |
|
|
|
2,318 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
115,077 |
|
|
$ |
106,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS EQUITY
|
Current liabilities: |
|
|
|
|
|
|
|
|
Current portion of debt |
|
$ |
3,000 |
|
|
$ |
3,000 |
|
Accounts payable and accrued expenses |
|
|
17,355 |
|
|
|
14,365 |
|
Accrued payroll and related expenses |
|
|
19,110 |
|
|
|
13,871 |
|
Refund liabilities and deferred revenue |
|
|
8,022 |
|
|
|
8,560 |
|
Acquisition obligations |
|
|
2,204 |
|
|
|
1,380 |
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
49,691 |
|
|
|
41,176 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
7,500 |
|
|
|
9,000 |
|
Noncurrent business acquisition obligations |
|
|
1,738 |
|
|
|
2,435 |
|
Other long-term liabilities |
|
|
4,818 |
|
|
|
4,867 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
63,747 |
|
|
|
57,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders equity: |
|
|
|
|
|
|
|
|
Common stock |
|
|
245 |
|
|
|
239 |
|
Additional paid-in capital |
|
|
567,706 |
|
|
|
566,328 |
|
Accumulated deficit |
|
|
(520,326 |
) |
|
|
(521,408 |
) |
Accumulated other comprehensive income |
|
|
3,705 |
|
|
|
3,684 |
|
|
|
|
|
|
|
|
Total shareholders equity |
|
|
51,330 |
|
|
|
48,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity |
|
$ |
115,077 |
|
|
$ |
106,321 |
|
|
|
|
|
|
|
|
SCHEDULE 3
PRGX Global, Inc. and Subsidiaries
Reconciliation of Net Earnings (Loss) to EBITDA and Adjusted EBITDA
(Amounts in thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
Six Months |
|
|
|
Ended June 30, |
|
|
Ended June 30, |
|
|
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
Reconciliation of net earnings (loss) to EBITDA
and to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
|
$ |
710 |
|
|
$ |
35 |
|
|
$ |
1,082 |
|
|
$ |
(3,400 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjust for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
784 |
|
|
|
628 |
|
|
|
1,905 |
|
|
|
1,064 |
|
Interest expense, net |
|
|
478 |
|
|
|
271 |
|
|
|
825 |
|
|
|
655 |
|
Loss on debt extinguishment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,381 |
|
Depreciation and amortization |
|
|
2,343 |
|
|
|
2,202 |
|
|
|
4,645 |
|
|
|
4,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
4,315 |
|
|
|
3,136 |
|
|
|
8,457 |
|
|
|
4,012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency (gains) losses on
intercompany balances |
|
|
(431 |
) |
|
|
1,091 |
|
|
|
(879 |
) |
|
|
1,712 |
|
Acquisition obligations classified
as compensation |
|
|
131 |
|
|
|
158 |
|
|
|
228 |
|
|
|
158 |
|
Transformation severance and related
expenses |
|
|
270 |
|
|
|
|
|
|
|
1,097 |
|
|
|
|
|
Stock-based compensation |
|
|
1,301 |
|
|
|
1,058 |
|
|
|
2,202 |
|
|
|
1,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
5,586 |
|
|
$ |
5,443 |
|
|
$ |
11,105 |
|
|
$ |
7,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA are both 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 Companys 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 Companys secured credit facility. However, 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 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.
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, |
|
|
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
|
$ |
710 |
|
|
$ |
35 |
|
|
$ |
1,082 |
|
|
$ |
(3,400 |
) |
Adjustments to reconcile net earnings (loss) to net cash provided
by (used in) operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,343 |
|
|
|
2,202 |
|
|
|
4,645 |
|
|
|
4,312 |
|
Amortization of deferred debt costs |
|
|
46 |
|
|
|
40 |
|
|
|
91 |
|
|
|
1,451 |
|
Stock-based compensation expense |
|
|
1,301 |
|
|
|
1,058 |
|
|
|
2,202 |
|
|
|
1,876 |
|
(Gain) loss on foreign currency transactions |
|
|
17 |
|
|
|
1,091 |
|
|
|
(431 |
) |
|
|
1,712 |
|
(Increase) decrease in receivables |
|
|
(2,372 |
) |
|
|
(975 |
) |
|
|
(1,738 |
) |
|
|
2,446 |
|
Increase (decrease) in accounts payable, accrued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
payroll and other accrued expenses |
|
|
3,273 |
|
|
|
1,526 |
|
|
|
6,400 |
|
|
|
(6,382 |
) |
Other, primarily changes in assets and liabilities |
|
|
(1,289 |
) |
|
|
(1,844 |
) |
|
|
(2,068 |
) |
|
|
(2,349 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating
activities |
|
|
4,029 |
|
|
|
3,133 |
|
|
|
10,183 |
|
|
|
(334 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used in investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,059 |
) |
Purchases of property and equipment, net of disposals |
|
|
(2,748 |
) |
|
|
(2,521 |
) |
|
|
(4,227 |
) |
|
|
(3,978 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
(2,748 |
) |
|
|
(2,521 |
) |
|
|
(4,227 |
) |
|
|
(7,037 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities |
|
|
(1,327 |
) |
|
|
(1,111 |
) |
|
|
(2,186 |
) |
|
|
(2,343 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rates on cash and cash equivalents |
|
|
283 |
|
|
|
(699 |
) |
|
|
686 |
|
|
|
(1,003 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents |
|
|
237 |
|
|
|
(1,198 |
) |
|
|
4,456 |
|
|
|
(10,717 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
|
|
22,667 |
|
|
|
23,507 |
|
|
|
18,448 |
|
|
|
33,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
22,904 |
|
|
$ |
22,309 |
|
|
$ |
22,904 |
|
|
$ |
22,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
|
2011 |
|
|
2010 |
|
|
Change |
|
|
2011 |
|
|
2010 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recovery Audit Services Americas |
|
$ |
27,901 |
|
|
$ |
29,870 |
|
|
$ |
(1,969 |
) |
|
$ |
57,014 |
|
|
$ |
54,844 |
|
|
$ |
2,170 |
|
Recovery Audit Services
Europe/Asia-Pacific |
|
|
15,753 |
|
|
|
12,957 |
|
|
|
2,796 |
|
|
|
30,505 |
|
|
|
27,695 |
|
|
|
2,810 |
|
New Services |
|
|
7,050 |
|
|
|
2,680 |
|
|
|
4,370 |
|
|
|
13,903 |
|
|
|
4,297 |
|
|
|
9,606 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
50,704 |
|
|
$ |
45,507 |
|
|
$ |
5,197 |
|
|
$ |
101,422 |
|
|
$ |
86,836 |
|
|
$ |
14,586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recovery Audit Services Americas |
|
$ |
15,597 |
|
|
$ |
17,146 |
|
|
$ |
1,549 |
|
|
$ |
32,240 |
|
|
$ |
33,301 |
|
|
$ |
1,061 |
|
Recovery Audit Services
Europe/Asia-Pacific |
|
|
12,068 |
|
|
|
10,170 |
|
|
|
(1,898 |
) |
|
|
23,658 |
|
|
|
21,413 |
|
|
|
(2,245 |
) |
New Services |
|
|
6,858 |
|
|
|
3,620 |
|
|
|
(3,238 |
) |
|
|
13,219 |
|
|
|
6,055 |
|
|
|
(7,164 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
34,523 |
|
|
$ |
30,936 |
|
|
$ |
(3,587 |
) |
|
$ |
69,117 |
|
|
$ |
60,769 |
|
|
$ |
(8,348 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recovery Audit Services Americas |
|
$ |
4,652 |
|
|
$ |
4,435 |
|
|
$ |
(217 |
) |
|
$ |
10,028 |
|
|
$ |
7,944 |
|
|
$ |
(2,084 |
) |
Recovery Audit Services
Europe/Asia-Pacific |
|
|
1,398 |
|
|
|
948 |
|
|
|
(450 |
) |
|
|
2,561 |
|
|
|
2,297 |
|
|
|
(264 |
) |
New Services |
|
|
1,338 |
|
|
|
690 |
|
|
|
(648 |
) |
|
|
2,566 |
|
|
|
1,107 |
|
|
|
(1,459 |
) |
Corporate |
|
|
4,909 |
|
|
|
4,271 |
|
|
|
(638 |
) |
|
|
9,572 |
|
|
|
8,995 |
|
|
|
(577 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
12,297 |
|
|
$ |
10,344 |
|
|
$ |
(1,953 |
) |
|
$ |
24,727 |
|
|
$ |
20,343 |
|
|
$ |
(4,384 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recovery Audit Services Americas |
|
$ |
1,340 |
|
|
$ |
1,477 |
|
|
$ |
137 |
|
|
$ |
2,687 |
|
|
$ |
2,957 |
|
|
$ |
270 |
|
Recovery Audit Services
Europe/Asia-Pacific |
|
|
435 |
|
|
|
399 |
|
|
|
(36 |
) |
|
|
855 |
|
|
|
804 |
|
|
|
(51 |
) |
New Services |
|
|
568 |
|
|
|
326 |
|
|
|
(242 |
) |
|
|
1,103 |
|
|
|
551 |
|
|
|
(552 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
2,343 |
|
|
$ |
2,202 |
|
|
$ |
(141 |
) |
|
$ |
4,645 |
|
|
$ |
4,312 |
|
|
$ |
(333 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recovery Audit Services Americas |
|
$ |
6,312 |
|
|
$ |
6,812 |
|
|
$ |
(500 |
) |
|
$ |
12,059 |
|
|
$ |
10,642 |
|
|
$ |
1,417 |
|
Recovery Audit Services
Europe/Asia-Pacific |
|
|
1,852 |
|
|
|
1,440 |
|
|
|
412 |
|
|
|
3,431 |
|
|
|
3,181 |
|
|
|
250 |
|
New Services |
|
|
(1,714 |
) |
|
|
(1,956 |
) |
|
|
242 |
|
|
|
(2,985 |
) |
|
|
(3,416 |
) |
|
|
431 |
|
Corporate |
|
|
(4,909 |
) |
|
|
(4,271 |
) |
|
|
(638 |
) |
|
|
(9,572 |
) |
|
|
(8,995 |
) |
|
|
(577 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
1,541 |
|
|
$ |
2,025 |
|
|
$ |
(484 |
) |
|
$ |
2,933 |
|
|
$ |
1,412 |
|
|
$ |
1,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recovery Audit Services Americas |
|
$ |
7,922 |
|
|
$ |
8,289 |
|
|
$ |
(367 |
) |
|
$ |
15,683 |
|
|
$ |
13,599 |
|
|
$ |
2,084 |
|
Recovery Audit Services
Europe/Asia-Pacific |
|
|
2,287 |
|
|
|
1,839 |
|
|
|
448 |
|
|
|
4,446 |
|
|
|
3,985 |
|
|
|
461 |
|
New Services |
|
|
(1,015 |
) |
|
|
(1,472 |
) |
|
|
457 |
|
|
|
(1,654 |
) |
|
|
(2,707 |
) |
|
|
1,053 |
|
Corporate |
|
|
(3,608 |
) |
|
|
(3,213 |
) |
|
|
(395 |
) |
|
|
(7,370 |
) |
|
|
(7,119 |
) |
|
|
(251 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
5,586 |
|
|
$ |
5,443 |
|
|
$ |
143 |
|
|
$ |
11,105 |
|
|
$ |
7,758 |
|
|
$ |
3,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
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 services provided to healthcare
organizations (including recovery audit services), financial advisory services and business
analytics services. |