EX-99.1 2 a04-8473_1ex99d1.htm EX-99.1

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

Contact: Bill Davis

Perficient, Inc.

(314) 995-8822

bill.davis@perficient.com

 

 

Perficient, Inc. Reports Second Quarter 2004 Results

 

AUSTIN, Texas — July 27, 2004 —Perficient, Inc. (NASDAQ: PRFT), a leading eBusiness solutions provider in the central United States, today reported financial results for the quarter ended June 30, 2004.

 

Financial Highlights

 

For the second quarter ended June 30, 2004:

 

•                  Revenue from services and software was up 66% to $10,725,216 versus $6,479,747 in the second quarter of 2003.

•                  Reported net income was up 357% to $810,023 versus $177,303 in the second quarter of 2003.

•                  Earnings per share were $0.04 as compared to $0.01 per share in the second quarter of 2003.

•                  Gross margin for services revenue was 38.7% versus 44.5% in the second quarter of 2003.

•                  Gross margin for software revenue was 22.5% as compared to 10.3% in the second quarter of 2003.

•                  EBITDA (a non-GAAP performance measure) was up 98.8% to $1,631,970 versus $820,990 during the second quarter of 2003.

 

“During the second quarter, Perficient achieved several key milestones,” said Jack McDonald, Perficient’s chairman and chief executive officer. “We surpassed $10 million in quarterly revenues for the first time, added substantial presence in five key Midwestern markets and more than doubled the size of our billable consulting staff.  We accomplished this while increasing revenues for the fourth consecutive quarter and while increasing EBITDA for the sixth consecutive quarter. Our company is executing extremely well, as we combine strategic acquisitions and organic growth to reach our next revenue objective — $100 million by the end of 2006.”

 

Additional Q2 2004 Highlights

 

Among other Q2 2004 highlights, Perficient:

 

•                  Achieved company-record revenues, net income and EBITDA;

•                  Reached our target of achieving a $50 million annual revenue run rate by the end of 2004 ahead of schedule by completing accretive acquisitions of Genisys Consulting and Meritage Technologies;

•                  Significantly expanded our geographic footprint by adding office locations in Chicago, Cincinnati, Columbus, Detroit, Indianapolis and Washington DC;

•                  Became the leading IBM WebSphereÒ solutions provider in the Midwest;

•                  Added new projects and follow-on engagements with top-tier enterprise clients including Assurant, BankOne, Chicago Board of Trade, Chicago Mercantile Exchange, DaimlerChrysler, Deutsche Asset Management, General Mills, Kroger, MeadWestvaco, Owens-Corning, Pfizer, Robert Bosch Corporation, Sara Lee, Toronto Dominion Bank, Unigroup, Wachovia Securities, Watson Wyatt Worldwide, Zions Bancorp and many others;

•                  Secured new acquisition financing and increased the total size of our credit facility with Silicon Valley Bank from $6 million to $10 million;

•                  Raised equity financing with a $2.5 million private placement led by Tate Capital Partners, a private equity firm specializing in growing technology companies;

•                  Accelerated our .Net practice and became a Microsoft Gold Certified Partner; and

•                  Was named for the third consecutive year to the VARBusiness 500, VARBusiness magazine’s annual listing of the top 500 solutions providers in North America, ranked by revenue.

 

 

Business Outlook

 

The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. These statements do not include the potential impact of any mergers, acquisitions, divestitures or other business combinations that may be completed after July 27, 2004.

 

We expect our Q3 2004 services and software revenue, net of reimbursed expenses, to be in the range of $12.3 million to $12.9 million, comprised of $11.7 million to $12.3 million in services revenue and $0.6 million in software revenue. It is our practice to include in our revenue guidance only those software sales actually booked as of the guidance date. The forecast range of services revenue would represent services revenue growth of 80% to 89% over the third quarter of 2003.

 

Earnings Conference Call and Webcast

 

We will host a public conference call at 4:30 p.m. Eastern today. Analysts and investors wishing to participate in the call and ask questions during the call’s Q&A session may access the call as follows:

 

Toll-Free: 800-299-7635

International: 617.786.2901

Participant Passcode: 81691031

 

In addition, the call will be webcast by CCBN and may be accessed via Perficient’s website at www.perficient.com.

 

The webcast is also being distributed over CCBN’s Investor Distribution Network to both institutional and individual investors. Individual investors may listen to the call through CCBN’s individual investor center at www.fulldisclosure.com or by visiting any of the investor sites in CCBN’s Individual Investor Network. Institutional investors may access the call via CCBN’s password-protected event management site, StreetEvents (www.streetevents.com).

 

Earnings Conference Call and Webcast Replay

 

A replay of this afternoon’s call may be accessed beginning this evening at 6:30 pm and ending on August 3rd, 2004. Replay information is as follows:

 

Toll-Free: 888-286-8010

International: 617-801-6888

Replay Passcode: 83579828

 

Additionally, the call replay will be hosted at www.perficient.com.

 

About Perficient

Perficient is a leading provider of eBusiness solutions in the central United States. Perficient helps companies acquire and strengthen their customer relationships, reduce their costs and empower their employees by helping them create Enabled Enterprises™, Web-based infrastructures with dynamically-integrated business applications that extend enterprise technology assets to customers, employees, suppliers and partners. Perficient is an award-winning “Premier Level” IBM business partner and a recognized expert in IBM’s WebSphere® software. Perficient’s other partners consist of leading eBusiness technology and services providers including Microsoft, Stellent, Bowstreet, Wily Technology, Tibco, Mainline, Digex, Fusion and others. For more information about Perficient, which has more than 320 professionals in the Central US and Canada, please visit http://www.perficient.com/. IBM and WebSphere are trademarks of International Business Machines Corporation in the United States, other countries, or both.

 

Safe Harbor Statement

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements that are subject to risk and uncertainties, including, but not limited to, the impact of competitive services, demand for services like those provided by the company and market acceptance risks, fluctuations in operating results, cyclical market pressures on the technology industry, the

 

 

ability to manage strains associated with the company’s growth, credit risks associated with the company’s accounts receivable, the company’s ability to continue to attract and retain high quality employees, accurately set fees for and timely complete its current and future client projects, and other risks detailed from time to time in the company’s filings with Securities and Exchange Commission, including the most recent Form 10-KSB and Form 10-QSB. The foregoing information concerning Perficient’s business outlook represents our outlook as of the date of this news release, and Perficient undertakes no obligation to update or revise any forward-looking statements whether as a result of new developments or otherwise.

 

 

Use of Non-GAAP Financial Information

To supplement our unaudited consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), Perficient uses non-GAAP measures, such as EBITDA, which are adjusted from results based on GAAP to exclude certain expenses. Perficient believes these non-GAAP financial measures are important representations of a company’s financial performance and uses such non-GAAP information internally to evaluate and manage its operations. Management has provided information regarding EBITDA to assist investors in analyzing Perficient’s financial position and results of operations.

These non-GAAP measures are provided to enhance the user’s overall understanding of our financial performance, but are not intended to be regarded as an alternative to or more meaningful than GAAP measures. The non-GAAP measures presented may not be comparable to similarly titled measures presented by other companies. A reconciliation of EBITDA to income (loss) from operations and net income (loss) is included in the unaudited consolidated statements of operations.

 

 

PERFICIENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2003

 

2004

 

2003

 

2004

 

 

 

(unaudited)

 

(unaudited)

 

Revenue

 

 

 

 

 

 

 

 

 

Services

 

$

6,120,463

 

$

9,653,450

 

$

11,865,773

 

$

16,317,236

 

Software

 

359,284

 

1,071,766

 

1,757,119

 

2,402,242

 

Reimbursable expenses

 

488,647

 

602,928

 

951,239

 

981,093

 

Total revenue

 

6,968,394

 

11,328,144

 

14,574,131

 

19,700,571

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

 

 

Project personnel costs

 

3,268,491

 

5,868,854

 

6,474,764

 

9,563,997

 

Software costs

 

322,396

 

831,082

 

1,519,146

 

1,984,435

 

Reimbursable expenses

 

488,647

 

602,928

 

951,239

 

981,093

 

Other project related expenses

 

126,199

 

52,025

 

199,395

 

162,298

 

Total cost of revenue

 

4,205,733

 

7,354,889

 

9,144,544

 

12,691,823

 

Gross margin

 

2,762,661

 

3,973,255

 

5,429,587

 

7,008,748

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

1,899,391

 

2,328,985

 

3,861,617

 

4,169,188

 

Stock compensation

 

42,280

 

12,300

 

84,149

 

24,768

 

EBITDA(1)

 

820,990

 

1,631,970

 

1,483,821

 

2,814,792

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

193,438

 

123,753

 

394,600

 

224,875

 

Intangibles amortization

 

154,168

 

162,778

 

491,668

 

212,779

 

Income from operations

 

473,384

 

1,345,439

 

597,553

 

2,377,138

 

Interest income

 

1,625

 

539

 

2,629

 

637

 

Interest expense

 

(68,813

)

(14,762

)

(143,401

)

(29,133

)

Other

 

(34,046

)

(193

)

(40,011

)

1,899

 

Income before income taxes

 

372,150

 

1,331,023

 

416,770

 

2,350,541

 

Provision for income taxes

 

194,847

 

521,000

 

324,847

 

920,000

 

Net income

 

$

177,303

 

$

810,023

 

$

91,923

 

$

1,430,541

 

 

 

 

 

 

 

 

 

 

 

Accretion of dividends on preferred stock

 

(46,296

)

—

 

(93,126

)

—

 

Net income (loss) available to common stockholders

 

$

131,007

 

$

810,023

 

$

(1,203

)

$

1,430,541

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share

 

$

0.01

 

$

0.05

 

$

(0.00

)

$

0.09

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share

 

$

0.01

 

$

0.04

 

$

(0.00

)

$

0.08

 

Shares used in computing basic net income (loss) per share

 

10,166,358

 

16,488,669

 

9,557,075

 

15,494,414

 

Shares used in computing diluted net income per share

 

14,460,966

 

20,234,707

 

9,557,075

 

18,928,871

 

 

(1) EBITDA is a non-GAAP performance measure and is not intended to be a performance measure that should be regarded as an alternative to or more meaningful than either GAAP operating income or GAAP net income.  EBITDA measures presented may not be comparable to similarly titled measures presented by other companies.

 

 

PERFICIENT, INC.

CONSOLIDATED BALANCE SHEETS

 

 

 

December 31,
2003

 

June 30,
2004

 

 

 

 

 

(unaudited)

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash

 

$

1,989,395

 

$

2,607,109

 

Accounts receivable, net

 

5,534,607

 

9,111,806

 

Other current assets

 

297,058

 

326,156

 

Total current assets

 

7,821,060

 

12,045,071

 

Net property and equipment

 

699,145

 

721,511

 

Net intangible assets

 

11,693,834

 

28,687,200

 

Other noncurrent assets

 

45,944

 

176,169

 

Total assets

 

$

20,259,983

 

$

41,629,951

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

129,895

 

$

522,946

 

Short term borrowings

 

—

 

576,140

 

Other current liabilities

 

3,310,872

 

4,402,239

 

Current portion of note payable to related party

 

366,920

 

234,899

 

Total current liabilities

 

3,807,687

 

5,736,224

 

Long term borrowings

 

—

 

1,923,860

 

Accrued income taxes, net of current portion

 

—

 

296,784

 

Note payable to related party, net of current portion

 

436,258

 

217,977

 

Total liabilities

 

4,243,945

 

8,174,845

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock

 

14,033

 

19,132

 

Additional paid-in capital

 

76,315,780

 

92,311,590

 

Deferred stock compensation

 

(26,623

)

(1,853

)

Accumulated other comprehensive loss

 

(51,830

)

(68,982

)

Accumulated deficit

 

(60,235,322

)

(58,804,781

)

Total stockholders’ equity

 

16,016,038

 

33,455,106

 

Total liabilities and stockholders’ equity

 

$

20,259,983

 

$

41,629,951