EX-99.1 2 a63016earningsrelease.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1



Ciber, Inc.
6312 S. Fiddler's Green Circle, Suite 600E
Greenwood Village, CO 80111
www.ciber.com

CIBER REPORTS SECOND QUARTER 2016 RESULTS

GREENWOOD VILLAGE, Colo., August 4, 2016 – Ciber, Inc. (NYSE: CBR), a leading global information technology consulting, services and outsourcing company, today reported results for the second quarter of 2016.

"The company is continuing to execute our strategy to bring about the transformation of Ciber," said President and Chief Executive Officer Michael Boustridge. "We are focused on exiting non-strategic businesses, lowering G&A costs, using targeted investment to reignite revenue growth, and generating positive operating cash flow to strengthen our financial position. Some of the important steps we have taken are already beginning to produce results."

Three Months Ended June 30, 2016

Revenue of $165.9 million fell 17% in constant currency and 16% in U.S. dollars compared with last year’s second quarter. The North America segment posted revenue of $95.1 million, down 13% from the year-ago second quarter and down 5% compared to the first quarter of 2016. Revenue in the International segment was $71.0 million for the second quarter of 2016, down 21% in constant currency and 21% in U.S. dollars compared to the year-ago second quarter. Compared to the first quarter of 2016, International revenue was down 10% in constant currency and 7% in U.S. dollars. Overall company gross margin was 20.5%, down from 26.1% in the prior year and 23.3% in the prior quarter.

GAAP operating loss was $53.3 million for the second quarter. Adjusted operating loss was $19.7 million before goodwill impairment, bad debt allowance adjustment, amortization and restructuring charges. These adjustments totaled $33.6 million.

GAAP net loss from continuing operations was $51.7 million in the quarter, or $0.64 per share. GAAP results include a non-cash impairment charge in the second quarter of 2016 of $29.6 million. Adjusted net loss from continuing operations for the second quarter of 2016, before goodwill impairment, gain on sale, bad debt allowance adjustment, amortization and restructuring charges was $22.0 million, or $0.27 per share, compared to adjusted net income of $2.0 million, or $0.02 per share, in the second quarter of 2015. Reconciliations of non-GAAP financial measures to GAAP operating results and diluted EPS are included at the end of this release.

Consolidated second quarter GAAP operating loss was affected by $7.1 million due to the following non-recurring adjustments. The North America segment second quarter revenue and GAAP operating loss was affected by a $4.9 million adjustment due to implementation delays and project cost overruns in our Oracle practice. The International segment second quarter GAAP operating loss was impacted by a $2.2



million customer bad debt allowance adjustment resulting from an International segment customer’s insolvency. 

Christian Mezger, Chief Financial Officer, commented, "Our focus remains on further reductions to our cost structure and enhancing cash generation to improve future results."

Six Months Ended June 30, 2016

Revenue of $341.0 million fell 14% in constant currency and 15% in U.S. dollars compared with last year’s six months ended June 30, 2015. The North America segment posted revenue of $194.7 million, down 9% from the year-ago six month period. Revenue in the International segment was $147.0 million for the first six months of 2016, down 18% in constant currency and 21% in U.S. dollars compared to the year-ago six month period. Overall company gross margin was 21.9%, down from 25.9% in the prior year first six months.

GAAP operating loss was $148.6 million for the first six months of 2016. Adjusted operating loss was $28.2 million before goodwill impairment, bad debt allowance adjustment, amortization and restructuring charges. These adjustments totaled $120.4 million.

GAAP net loss from continuing operations was $148.7 million for the first six months of 2016, or $1.85 per share. GAAP results include a non-cash impairment charge in the first six months of 2016 of $115.5 million. Adjusted net loss from continuing operations for the first six months of 2016, before goodwill impairment, gain on sale, bad debt allowance adjustment and amortization and restructuring charges was $32.2 million, or $0.40 per share, compared to adjusted net income of $6.1 million, or $0.08 per share in the first six months of 2015. Reconciliations of non-GAAP financial measures to GAAP operating results and diluted EPS are included at the end of this release.

Sale of Ciber Nederland B.V.

As Ciber executes its strategy of exiting non-strategic businesses, the Company on June 16, 2016, completed a sale of certain assets and liabilities of Ciber Nederland, B.V., which has been reported as a part of the Company's International segment, for a cash purchase price of $25.0 million. The purchase price includes $5.0 million to be held in escrow, to be released in equal parts at 12 and 18 months from the closing. The purchase price also is subject to a purchase price adjustment, capped at the amount held in escrow, six months after closing with respect to the retention of certain Ciber Nederland customers. Subsequent to quarter end, the purchase price was adjusted by $3.9 million for a working capital adjustment under the purchase agreement, resulting in total sale proceeds of $28.9 million, assuming full release of the escrow. The gain on the sale of assets was $6.9 million for the six months ended June 30, 2016.

Capital Deployment and Liquidity

Ciber's cash balance at the end of the second quarter of 2016 was $11.3 million. The outstanding balance on the credit facility was $40.7 million. At the end of the first quarter of 2016, Ciber's cash balance was $18.4 million and the outstanding balance on the credit facility was $39.5 million.

Cash flow used in operating activities (continuing operations) in the second quarter was $32.1 million and year-to-date through June 30, 2016 was $35.5 million, compared with cash usage of $3.5 million in the year-ago quarter and $37.1 million in the first half of 2015. Days Sales Outstanding were 71 days, an


increase of three days versus the prior year quarter and no change versus the first quarter of 2016. Capital expenditures totaled $8.3 million for year-to-date 2016 compared to $3.6 million in the year-earlier period.

Goodwill Impairment Charge

Ciber recorded a non-cash goodwill impairment charge in the 2016 second quarter of $29.6 million, or $0.37 per diluted share, for the write-down of goodwill related to its International segment.  A sustained decrease in the Company’s stock price, lower than expected earnings and the sale of Ciber Nederland B.V. during the second quarter of 2016 resulted in a potential indicator of goodwill impairment. Ciber compared the carrying value of its segments versus fair value as of June 30, 2016. The analysis concluded that the fair value of Ciber’s International segment was below its carrying value.  The non-cash impairment charge impacts neither the Company’s future performance nor compliance with debt covenants under its revolving credit agreement. The Company also recorded a non-cash goodwill impairment charge in the 2016 first quarter of $85.9 million, or $1.07 per diluted share, for the write-down of goodwill related to its International segment. Ciber’s balance sheet after the 2016 second quarter impairment charge includes no goodwill in its International segment.

Continuing Operations

For a recap of historical comparisons, please refer to Ciber's SEC filings on forms 10-Q and 8-K. These filings may be found in the Investor Relations section of the Company's website at http://www.ciber.com.

Investor and Analyst Conference Call

Ciber President and Chief Executive Officer Michael Boustridge and Executive Vice President and Chief Financial Officer Christian Mezger invite you to participate in a conference call or audio-cast today at 8:30 a.m. Eastern Time to discuss the Company's financial results.

The press release and live audio-cast of the conference call will be available on the Events & Presentations section of the corporate website. To participate in the conference call, dial 877-407-8293 (U.S.) or +1-201-689-8349 (outside the U.S.) ten minutes prior to the start of the call.

A replay of the call and webcast will be available one hour after the call ends through September 30, 2016. To access the telephone replay, dial 877-660-6853 (U.S.) or +1-201-612-7415 (outside the U.S.) and enter conference ID: 13640726.

The webcast replay will be available on the Events & Presentations section of the corporate website.

Non-GAAP Financial Information

In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America ("U.S. GAAP"), we also present certain non-GAAP measurements because management believes that these metrics provide meaningful supplemental information useful to investors and other users of our financial statements in evaluating our operating performance because they provide an additional measure to evaluate our performance without regard to special and non-core items, which can vary substantially from company to company and from period to period. These non-GAAP measurements should be viewed as supplements to (not substitutes for) our results of operations presented


under U.S. GAAP, and include: "constant currency;" "adjusted operating income," "adjusted operating margin," "adjusted net income/loss from continuing operations," "adjusted net income/loss per share," and "adjusted SG&A expenses." Reconciliations of non-GAAP measures to the nearest comparable U.S. GAAP measures are available in the schedules accompanying this release. These reconciliations may also be found in the Investor Relations section of the Company's website at http://www.ciber.com/.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 relating to our operations, results of operations and other matters that are based on our current expectations, estimates, forecasts and projections. Words, such as "anticipate," "believe," "could," "expect," "estimate," "intend," "may," "opportunity," "plan," "positioned," "potential," "project," "should," and "will" and similar expressions, are intended to identify these forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by our forward-looking statements include, but are not limited to, related to: any potential need to raise additional capital to de-lever our balance sheet to allow us to continue as a going concern over the longer term; operational limitations of our credit facility and our potential need for and the availability of additional capital to support our business; our ability to maintain compliance with the listing standards of the New York Stock Exchange; our ability to continue to evolve our business model, offerings, products and services, and to execute on the key elements of our strategic plan or the success of our strategic plan; volatile, uncertain or negative economic conditions and the impacts of economic conditions on our clients' operations and technology spending; a data security or privacy breach; fluctuations or lack of growth in the market for IT services; our ability to maintain our utilization rates and control our costs; our ability to keep pace with rapid changes in technology; the termination or cancellation of a contract by a significant client; the highly competitive nature of the U.S. and International IT services industry; quarterly variance in our revenues, operating results and profitability that could impact our stock price; damage to our professional reputation and/or legal liability if our clients are not satisfied with our services; the accuracy of our estimates of the cost of engagements conducted on a fixed-price basis; third party vendors performing our services and the potential for harm to our reputation; our ability to improve our operations, finances and systems; our ability to enter, operate and compete effectively in new geographic markets; the value of our brand and reputation and any damage thereto; an adverse outcome of litigation which could subject us to damage awards; our reliance on a few customers for a large portion of our revenues; our ability to continue to retain and attract qualified sales, delivery and technical employees; our relationships with software vendors and the potential loss of any significant software vendor; our ability to protect our intellectual property rights from unauthorized use or infringement; the potential for infringement by our services or solutions on the intellectual property rights of others or the potential loss of our ability to utilize rights we claim in intellectual property; our ability to collect our receivables; our international operations; the resources committed to new offerings and the potential impact on our profitability if our business does not grow proportionately; disruptions that may impact our results of operations and from which we may not recover; our compliance with applicable laws and regulations; losses we may incur that may not be fully covered by our insurance policies; our ability to identify, acquire, or integrate businesses or enter into joint ventures; further impairment in the carrying value of our goodwill; contracts with various public sector agencies; our anti-takeover defenses that could make it difficult for another company to acquire control of Ciber or limit the price investors might be willing to pay for our stock; the potentially conflicting interests of our institutional shareholders; and issues that could arise during the implementation of our Enterprise Resource Planning system.


For a more detailed discussion of these factors, see the information under the "Risk Factors" heading in our Annual Report on Form 10-K for the year ended December 31, 2015, our Quarterly Report on Form 10-Q for the three months ended March 31, 2016, our Quarterly Report on Form 10-Q for the three and six months ended June 30, 2016, when filed with the Securities and Exchange Commission ("SEC") and other documents filed with or furnished to the SEC. Other than as required by law, we undertake no obligation to publicly update any forward-looking statements in light of new information or future events. Readers are cautioned not to put undue reliance on forward-looking statements.

About Ciber, Inc.

Ciber is a global IT consulting company with approximately 5,500 employees in North America, Europe and Asia/Pacific. Ciber partners with organizations to develop technology strategies and solutions that deliver tangible business value. Founded in 1974, the company trades on the New York Stock Exchange (NYSE: CBR). For more information, visit www.ciber.com and follow us on Twitter, LinkedIn, Facebook, Google Plus and our blog.

###

Contact:

Scott Kozak
Global Communications, Investor and Industry Relations
303-967-1379
skozak@ciber.com





Ciber, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
REVENUES
 
 
 
 
 
 
 
Consulting services
$
156,220

 
$
187,246

 
$
322,458

 
$
378,300

Other revenue
9,692

 
10,698

 
18,505

 
21,649

Total revenues
165,912

 
197,944

 
340,963

 
399,949

 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
Cost of consulting services
126,437

 
140,621

 
255,880

 
284,416

Cost of other revenue
5,453

 
5,618

 
10,317

 
12,113

Selling, general and administrative
55,908

 
48,030

 
105,131

 
93,748

Goodwill Impairment
29,560

 
—

 
115,483

 
—

Amortization of intangible assets
1,433

 
107

 
2,026

 
107

Restructuring charges
394

 
675

 
739

 
736

Total operating expenses
219,185

 
195,051

 
489,576

 
391,120

 
 
 
 
 
 
 
 
OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS
(53,273
)
 
2,893

 
(148,613
)
 
8,829

 
 
 
 
 
 
 
 
Gain on sale of assets
6,930

 
—

 
6,930

 
—

Interest expense
(703
)
 
(427
)
 
(1,247
)
 
(741
)
Other expense, net
(637
)
 
(225
)
 
(769
)
 
(378
)
 
 
 
 
 
 
 
 
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(47,683
)
 
2,241

 
(143,699
)
 
7,710

Income tax expense
4,039

 
1,090

 
4,987

 
2,341

 
 
 
 
 
 
 
 
INCOME (LOSS) FROM CONTINUING OPERATIONS
(51,722
)
 
1,151

 
(148,686
)
 
5,369

Gain (loss) from discontinued operations, net of income tax
384

 
(16
)
 
348

 
(58
)
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME (LOSS)
(51,338
)
 
1,135

 
(148,338
)
 
5,311

Net income (loss) attributable to noncontrolling interests
15

 
(10
)
 
35

 
(8
)
 
 
 
 
 
 
 
 
NET EARNINGS (LOSS) ATTRIBUTABLE TO CIBER, INC.
$
(51,353
)
 
$
1,145

 
$
(148,373
)
 
$
5,319

 
 
 
 
 
 
 
 
Basic and diluted earnings (loss) per share attributable to Ciber, Inc.:
 
 
 
 
 
 
 
Continuing operations
$
(0.64
)
 
$
0.01

 
$
(1.85
)
 
$
0.07

Discontinued operations
—

 
—

 
0.01

 
—

Basic and diluted earnings (loss) per share attributable to Ciber, Inc.
$
(0.64
)
 
$
0.01

 
$
(1.84
)
 
$
0.07

 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
Basic
80,666

 
78,880

 
80,576

 
78,804

Diluted
80,666

 
79,801

 
80,576

 
79,670





Ciber, Inc.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(Unaudited)
 
 
June 30,
2016
 
December 31,
2015
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
11,288

 
$
20,404

Restricted cash
2,500

 
—

Accounts receivable, net of allowances of $4,501 and $2,130, respectively
141,743

 
169,501

Prepaid expenses and other current assets
36,948

 
26,340

Total current assets
192,479

 
216,245

 
 
 
 
Property and equipment, net of accumulated depreciation of $32,896 and $37,849, respectively
20,452

 
22,447

Goodwill
133,681

 
256,736

Intangibles, net
3,553

 
1,544

Other assets
7,255

 
5,299

 
 
 
 
TOTAL ASSETS
$
357,420

 
$
502,271

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Liabilities:
 
 
 
Current liabilities:
 
 
 
Current portion of long-term debt
$
40,285

 
$
—

Accounts payable
24,306

 
34,980

Accrued compensation and related liabilities
33,573

 
31,152

Deferred revenue
10,226

 
14,238

Income taxes payable
123

 
575

Other accrued expenses and liabilities
23,422

 
29,384

Total current liabilities
131,935

 
110,329

 
 
 
 
Long-term debt
—

 
32,680

Deferred income taxes
32,085

 
30,571

Other long-term liabilities
14,404

 
8,794

Total liabilities
178,424

 
182,374

 
 
 
 
Commitments and contingencies (see Note 10)
 
 
 
 
 
 
 
Equity:
 
 
 
Ciber, Inc. shareholders' equity:
 
 
 
Preferred stock, $0.01 par value, 1,000 shares authorized, no shares issued
—

 
—

Common stock, $0.01 par value, 100,000 shares authorized, 80,924 and 80,057 shares issued, respectively
809

 
801

Treasury stock, at cost, 29 and 32 shares, respectively
(45
)
 
(113
)
Additional paid-in capital
373,321

 
369,228

Accumulated deficit
(166,971
)
 
(17,903
)
Accumulated other comprehensive loss
(28,739
)
 
(32,702
)
Total Ciber, Inc. shareholders' equity
178,375

 
319,311

Noncontrolling interests
621

 
586

Total equity
178,996

 
319,897

 
 
 
 
TOTAL LIABILITIES AND EQUITY
$
357,420

 
$
502,271

 



Exhibit 99.1

Ciber, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
 
Six Months Ended June 30,
 
2016
 
2015
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
Consolidated net income (loss)
$
(148,338
)
 
$
5,311

Adjustments to reconcile consolidated net income (loss) to net cash used in operating activities:
 
 
 
(Gain) loss from discontinued operations
(348
)
 
58

Goodwill impairment
115,483

 
—

Gain on sale of assets
(6,930
)
 
—

Depreciation
3,170

 
2,715

Amortization of intangible assets
2,026

 
107

Deferred income tax expense
1,520

 
2,172

Provision for doubtful receivables
2,667

 
373

Share-based compensation expense
3,766

 
3,927

Amortization of debt costs
379

 
285

Other, net
163

 
1,154

Changes in operating assets and liabilities:
 
 
 
Accounts receivable
12,145

 
(18,462
)
Other current and long-term assets
(9,597
)
 
(8,309
)
Accounts payable
(8,233
)
 
(4,337
)
Accrued compensation and related liabilities
3,001

 
(20,828
)
Other current and long-term liabilities
(6,059
)
 
(3,061
)
Income taxes payable/refundable
(321
)
 
1,802

Cash used in operating activities — continuing operations
(35,506
)
 
(37,093
)
Cash used in operating activities — discontinued operations
(175
)
 
(222
)
Cash used in operating activities
(35,681
)
 
(37,315
)
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
Proceeds from sale of assets
20,000

 
—

Proceeds from sale of assets-restricted cash
5,000

 
—

Purchases of property and equipment, net
(8,301
)
 
(3,621
)
Cash provided by (used in) investing activities — continuing operations
16,699

 
(3,621
)
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
Borrowings on debt
146,438

 
196,009

Payments on debt
(139,005
)
 
(176,734
)
Employee stock purchases and options exercised
334

 
999

Purchase of shares for employee tax withholdings
(626
)
 
(799
)
Purchase of noncontrolling interest
—

 
(4,991
)
Purchase of treasury stock
—

 
(1,665
)
Cash provided by financing activities — continuing operations
7,141

 
12,819

Effect of foreign exchange rate changes on cash and cash equivalents
2,725

 
(117
)
Net decrease in cash and cash equivalents
(9,116
)
 
(28,234
)
Cash and cash equivalents, beginning of period
20,404

 
45,858

Cash and cash equivalents, end of period
$
11,288

 
$
17,624





Ciber, Inc.
SUMMARY SEGMENT DATA
(Dollars in thousands)
(Unaudited)

Summary Segment Analysis
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
Change
 
2016
 
2015
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
International
$
71,033

 
$
89,295

 
(21
)%
 
$
146,997

 
$
185,982

 
(21
)%
North America
95,095

 
108,825

 
(13
)%
 
194,680

 
214,392

 
(9
)%
Other
789

 
833

 
(5
)%
 
1,553

 
1,621

 
(4
)%
Total segment revenues
166,917

 
198,953

 
(16
)%
 
343,230

 
401,995

 
(15
)%
Inter-segment
(1,005
)
 
(1,009
)
 
—
 %
 
(2,267
)
 
(2,046
)
 
11
 %
Total revenues
$
165,912

 
$
197,944

 
(16
)%
 
$
340,963

 
$
399,949

 
(15
)%
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss) from continuing operations:
 
 
 
 
 
 
 
 
 
 
 
International
$
(9,073
)
 
$
5,225

 
n/m

 
$
(10,109
)
 
$
11,638

 
n/m

North America
895

 
10,387

 
(92
)%
 
7,439

 
20,383

 
(64
)%
Other
49

 
49

 
(1
)%
 
174

 
125

 
39
 %
Total segment operating income
(8,129
)
 
15,661

 
n/m

 
(2,496
)
 
32,146

 
n/m

Corporate expenses
(13,757
)
 
(11,986
)
 
14
 %
 
(27,869
)
 
(22,474
)
 
24
 %
Operating income from continuing operations before amortization and restructuring charges
(21,886
)
 
3,675

 
n/m

 
(30,365
)
 
9,672

 
n/m

Goodwill impairment
(29,560
)
 
—

 
(100
)%
 
(115,483
)
 
—

 
(100
)%
Amortization of intangible assets
(1,433
)
 
(107
)
 
n/m

 
(2,026
)
 
(107
)
 
n/m

Restructuring charges
(394
)
 
(675
)
 
(43
)%
 
(739
)
 
(736
)
 
—
 %
Total operating income (loss) from continuing operations
$
(53,273
)
 
$
2,893

 
n/m

 
$
(148,613
)
 
$
8,829

 
n/m

_____________
n/m = not meaningful

Segments as Percent of Total Segment Revenue and Total Segment Operating Income
(excluding Inter-segment, corporate expenses, amortization and restructuring)

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Revenues:
 
 
 
 
 
 
 
International
43
 %
 
45
%
 
43
 %
 
47
%
North America
57
 %
 
55
%
 
57
 %
 
53
%
Other
—
 %
 
—
%
 
—
 %
 
—
%
Total segment revenues
100
 %
 
100
%
 
100
 %
 
100
%
 
 
 
 
 
 
 
 
Operating income (loss):
 
 
 
 
 
 
 
International
112
 %
 
34
%
 
405
 %
 
37
%
North America
(11
)%
 
66
%
 
(298
)%
 
63
%
Other
(1
)%
 
—
%
 
(7
)%
 
—
%
Total segment operating income (loss)
100
 %
 
100
%
 
100
 %
 
100
%

Segment Operating Margins
(excluding corporate expenses, amortization and restructuring charges)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Operating margin:
 
 
 
 
 
 
 
International
(13
)%
 
6
%
 
(7
)%
 
6
%
North America
1
 %
 
10
%
 
4
 %
 
10
%
Other
6
 %
 
6
%
 
11
 %
 
8
%
Total segment operating margin
(5
)%
 
8
%
 
(1
)%
 
8
%



Ciber, Inc.
NON-GAAP FINANCIAL INFORMATION
(Dollars in millions, except per share amounts)
(Unaudited)

Ciber reports its financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). However, management believes that certain non-GAAP financial measures used in managing our business may provide users of this financial information with additional meaningful comparisons between current results and prior reported results. Certain of the information set forth in this press release, our quarterly earnings call, and our quarterly report on form 10-Q constitutes non-GAAP financial measures within the meaning of Regulation G adopted by the Securities and Exchange Commission. We have presented below a reconciliation of these measures to the most directly comparable GAAP financial measure. The presentation of this additional information is not meant to be considered in isolation or as a substitute for comparable amounts determined in accordance with GAAP in the United States.

Components of Revenue
 
Three Months Ended June 30, 2016 Comparison to Three Months Ended June 30, 2015
 
 
Constant Currency Revenue Decrease
 
Foreign Exchange Impact
 
GAAP Reported Revenue Decrease
Revenues:
 
 
 
 
 
 
Consolidated
 
(16.6
)%
 
0.3
%
 
(16.3
)%
 
 
 
 
 
 
 
International
 
(21.3
)%
 
0.7
%
 
(20.6
)%

 
 
Three Months Ended June 30, 2016 Sequential Comparison to Three Months Ended March 31, 2016
 
 
Constant Currency Revenue Decrease
 
Foreign Exchange Impact
 
GAAP Reported Revenue Decrease
Revenues:
 
 
 
 
 
 
Consolidated
 
(6.8
)%
 
1.5
%
 
(5.3
)%
 
 
 
 
 
 
 
International
 
(10.2
)%
 
3.5
%
 
(6.7
)%


 
 
Six Months Ended June 30, 2016 Comparison to Six Months Ended June 30, 2015
 
 
Constant Currency Revenue Increase (Decrease)
 
Foreign Exchange Impact
 
GAAP Reported Revenue Decrease
Revenues:
 
 
 
 
 
 
Consolidated
 
(13.6
)%
 
(1.2
)%
 
(14.8
)%
 
 
 
 
 
 
 
International
 
(18.4
)%
 
(2.7
)%
 
(21.1
)%




















Adjusted Results of Operations

Three Months Ended June 30, 2016
 
Consolidated*
 
Three Months Ended June 30, 2016
 
Three Months Ended June 30, 2015
 
Three Months Ended March 31, 2016
 
In millions
 
 Margin
 
In millions
 
 Margin
 
In millions
 
 Margin
GAAP reported operating income (loss) from continuing operations
$
(53.3
)
 
(32.1
)%
 
$
2.9

 
1.5
%
 
$
(95.3
)
 
(54.5
)%
Goodwill impairment
29.6

 
17.8

 
—

 
—

 
85.9

 
49.1

Bad debt allowance adjustment
2.2

 
1.3

 
—

 
—

 
—

 
—

Restructuring charges
0.4

 
0.2

 
0.7

 
0.3

 
0.3

 
0.2

Amortization of intangible assets
1.4

 
0.9

 
0.1

 
0.1

 
0.6

 
0.3

Operating income (loss) from continuing operations before goodwill impairment, bad debt allowance adjustment, restructuring charges and amortization
$
(19.7
)
 
(11.8
)%
 
$
3.7

 
1.9
%
 
$
(8.5
)
 
4.8
 %
     *Columns may not total due to rounding

 
Consolidated*
 
Three Months Ended June 30, 2016
 
Three Months Ended June 30, 2015
 
Three Months Ended March 31, 2016
 
In millions
 
Per Share
 
In millions
 
Per Share
 
In millions
 
Per Share
GAAP net income (loss) from continuing operations
$
(51.7
)
 
$
(0.64
)
 
$
1.2

 
$
0.01

 
$
(97.0
)
 
$
(1.21
)
Goodwill impairment
29.6

 
0.37

 
—

 
—

 
85.9

 
1.07

Restructuring charges
0.4

 
—

 
0.7

 
0.01

 
0.3

 
—

Bad debt allowance adjustment
2.2

 
0.03

 
—

 
—

 
—

 
—

Gain on sale
(6.9
)
 
(0.09
)
 
—

 
—

 
—

 
—

Tax impact of sale
3.0

 
0.04

 
—

 
—

 
—

 
—

Tax impact of restructuring charges
—

 
—

 
—

 
—

 
—

 
—

Amortization of intangibles
1.4

 
0.02

 
0.1

 
—

 
0.6

 
0.01

Net income (loss) from continuing operations before goodwill impairment, bad debt allowance adjustment, gain on sale, restructuring charges and amortization
$
(22.0
)
 
$
(0.27
)
 
$
2.0

 
$
0.02

 
$
(10.1
)
 
$
(0.13
)
*Columns may not total due to rounding




























Six Months Ended June 30, 2016

 
Consolidated*
 
Six Months Ended June 30, 2016
 
Six Months Ended June 30, 2015
 
In millions
 
 Margin
 
In millions
 
 Margin
GAAP reported operating income (loss) from continuing operations
$
(148.6
)
 
(43.6
)%
 
$
8.8

 
2.2
%
Goodwill impairment
115.5

 
33.9

 
—

 
—

Bad debt allowance adjustment
2.2

 
0.6

 
—

 
—

Restructuring charges
0.7

 
0.2

 
0.8

 
0.2

Amortization of intangible assets
2.0

 
0.6

 
0.1

 
—

Operating income (loss) from continuing operations before goodwill impairment, bad debt allowance adjustment, restructuring charges and amortization
$
(28.2
)
 
(7.5
)%
 
$
9.7

 
2.4
%
*Columns may not total due to rounding


 
Consolidated*
 
Six Months Ended June 30, 2016
 
Six Months Ended June 30, 2015
 
In millions
 
Per Share
 
In millions
 
Per Share
GAAP net income (loss) from continuing operations
$
(148.7
)
 
$
(1.85
)
 
$
5.4

 
$
0.07

Goodwill impairment
115.5

 
1.43

 
—

 
—

Restructuring charges
0.7

 
0.01

 
0.8

 
0.01

Bad debt allowance adjustment
2.2

 
0.03

 
—

 
—

Gain on sale
(6.9
)
 
(0.09
)
 
—

 
—

Tax impact of sale
3.0

 
0.04

 
—

 
—

Tax impact of restructuring charges
—

 
—

 
(0.2
)
 
—

Amortization of intangibles
2.0

 
0.03

 
0.1

 
—

Net income (loss) from continuing operations before goodwill impairment, gain on sale, bad debt allowance adjustment, restructuring charges and amortization
$
(32.2
)
 
$
(0.40
)
 
$
6.1

 
$
0.08

*Columns may not total due to rounding