EX-99.1 2 a05-13837_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

CIBER, Inc.

5251 DTC Parkway, Suite 1400

Greenwood Village, CO  80111

www.ciber.com

 

For Immediate Release

 

Contacts:

 

Jennifer Matuschek

 

Diane Stoner

 

 

 

 

VP/Investor Relations

 

Media Relations

 

 

 

 

303-220-0100

 

303-220-0100

 

 

 

 

jmatuschek@ciber.com

 

dstoner@ciber.com

 

CIBER REPORTS SECOND QUARTER RESULTS

Meets Guidance Given Earlier in July

 

GREENWOOD VILLAGE, Colorado – July 27, 2005 – CIBER, Inc. (NYSE: CBR) today reported results for the quarter ended June 30, 2005.  Revenue was $241.0 million (another new high for CIBER), net income was $6.6 million, and GAAP EPS was $0.10/share.  These results met or exceeded the updated guidance that CIBER issued earlier this month.

 

Second Quarter and First Half 2005 Recap:

 

Revenue of $241.0 million for the June 2005 quarter, an increase of $32.7 million, or 16 percent, over the June 2004 quarter was fueled by three percent organic growth.  For the six months ended June 2005, revenue of $480.5 million exceeded the like 2004 period by $92.2 million, or 24 percent.

 

Net income for the June 2005 quarter of $6.6 million was $1.3 million, or 16 percent, less than the June 2004 quarter. For the six months ended June 2005, net income of $14.4 million was four percent higher than the June 2004 six-month period of $13.9 million.

 

Sequentially, revenue increased $1.4 million, approximately one percent, from the March 2005 quarter.  Net income represented a $1.2 million, or 15 percent, decrease from the March 2005 quarter.

 

GAAP EPS of $0.10/share for the June 2005 quarter was $0.02/share lower than the June 2004 quarter.  For the six months ended June 30, 2005, EPS of $0.22/share exceeded the like 2004 period by $0.01/share, or five percent.

 

(In millions, except share data amounts)

 

 

 

Quarterly Data:

 

 

 

Year Ago Quarter

 

Last Quarter

 

Current Quarter

 

 

 

June 2004

 

March 2005

 

June 2005

 

Revenue

 

$

208.3

 

$

239.6

 

$

241.0

 

Net Income

 

$

7.9

 

$

7.8

 

$

6.6

 

GAAP EPS

 

$

0.12

 

$

0.12

 

$

0.10

 

Free Cash Flow (defined below)

 

$

9.7

 

$

10.2

 

$

8.8

 

 

(MORE)

 


 

 

 

Six Month Data:

 

 

 

Year Ago

 

Current Year

 

 

 

1H04

 

1H05

 

Revenue

 

$

388.3

 

$

480.5

 

Net Income

 

$

13.9

 

$

14.4

 

GAAP EPS

 

$

0.21

 

$

0.22

 

Free Cash Flow (defined below)

 

$

16.9

 

$

19.0

 

 

Suspension of Cash EPS Reporting:

 

In previous quarters, CIBER has reported Cash EPS, which included with GAAP EPS the tax-adjusted portion of amortization expense.  Amortization is a non-cash charge of non-goodwill, intangible assets charged to the Statement of Operations.  While the Company is suspending Cash EPS references, it notes that this non-cash expense, at present levels, reduces GAAP EPS prospectively by approximately $0.06/share per year.

 

Free Cash Flow (FCF)  ($ millions)

 

 

 

Quarter Ended

 

Six Months Ended

 

 

 

June 2004

 

June 2005

 

June 2004

 

June 2005

 

Net Income

 

$

7.9

 

$

6.6

 

$

13.9

 

$

14.4

 

Depreciation

 

2.5

 

2.8

 

4.5

 

5.7

 

Amortization

 

1.0

 

1.5

 

1.6

 

3.1

 

Capital Exp.

 

(1.7

)

(2.1

)

(3.1

)

(4.2

)

FCF

 

$

9.7

 

$

8.8

 

$

16.9

 

$

19.0

 

“Other” CF Items*

 

1.4

 

12.3

 

(13.4

)

(4.4

)

Net FCF*

 

$

11.1

 

$

21.1

 

$

3.5

 

$

14.6

 

 

*                 “Other” CF Items, from the operating activities portion of the Statement of Cash Flows, vary with timing of receipts and payments and temporarily increase or decrease FCF.  Net FCF is equal to net cash provided by operating activities from the Statement of Cash Flows, less Capital Expenditures.

 

Accomplishments:

 

“Despite significant challenges in the quarter, we reported revenue growth sequentially, first half-over-first half and year-over-year, and had strong cash flow.  The quarter was negatively impacted by the fall of the Euro and other European currencies to the U.S. dollar.  This impacted the top line by approximately $2.0 million and pre-tax profits by $1.0MM,” said Mac Slingerlend, CIBER’s President and Chief Executive Officer.  “While there were additional obstacles, we continue to prove the competitive benefits of our business model built upon the changes we have made over the last four years.”

 

“We were also pleased to enhance our offshore business model by acquiring Knowledge Systems Pvt. Ltd. of Bangalore, India and with the strategic addition of SAP-related folks in Sweden during the June quarter.”

 

Second Quarter Highlights:

 

Significant Wins -

 

•                  Our $20 million City of New Orleans win awarded in April (in our State & Local Practice) was increased to $28 million.

 

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•                  Two $4 million contracts, one each in Massachusetts and Pennsylvania, the latter of which can lead to larger follow-on business.

 

•                  A $3.5 million contract in the United Kingdom, the first VAR win of our London SAP Practice, with Dunelm Mill.

 

•                  A CRM win with Arsenal Football Club in the UK for $200,000.

 

•                  A $4.2 million new training business contract with NASA’s National Institute of Aeronautics.

 

•                  An approximately $6.5 million SAP implementation with a major telecom customer in Germany.

 

Expanded Relationship with SAP:

 

On June 30, 2005 CIBER entered into a new U.S. Gold Level Partnership with SAP, including a meaningful five-year go-to-market agreement.  CIBER and SAP have committed to work with each other on particular verticals.

 

Strong Wins and Pipeline:

 

Second quarter 2005 contract wins (now including Europe) totaled $288 million.  This represents the highest bookings CIBER has recorded and a 1.2:1 book:bill ratio.  CIBER’s pipeline (excluding Europe) is approximately $1.9 billion, an all time high.  “We continue to believe our business model, client relationships and sales strategies are collectively competitive advantages,” continued Slingerlend.

 

Third Quarter Goals:

 

“Building upon the momentum of the first-half of 2005 is vital,” said Slingerlend.  CIBER believes its maturing pipeline will help support the third quarter.  New projects are scheduled to kick off in all sectors, particularly as the upcoming quarter proceeds.  CIBER is focused on more ERP closings, winning new outsourcing contracts and integrating its new Indian subsidiary to accelerate offshore growth.

 

Guidance:

 

For the quarter ending September 30, 2005, as we presently forecast, revenue is to be $239-244 million and GAAP EPS is to be $0.11-0.13/share.

 

We are reiterating our 2005 annual guidance as to revenue at $970-980 million, GAAP EPS of $0.50-0.54/share and Free Cash Flow of $44-48 million.

 

Conference Call Webcast:

 

A webcast to discuss the company’s financial results and outlook will be held at 11:00 a.m. ET Thursday July 28th, and may be heard live by visiting the “webcast” section of the Investors portion of the company website.

 

About CIBER, Inc.

 

CIBER, Inc. (NYSE: CBR) is a pure-play international system integration consultancy with superior value-priced services for both private and government sector clients. CIBER’s global delivery services are offered on a project or strategic staffing basis, in both custom and enterprise resource planning (ERP) package

 

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environments, and across all technology platforms, operating systems and infrastructures. Founded in 1974, the company’s consultants now serve client businesses from over 60 U.S. offices, 22 European offices and three offices in Asia.  With offices in 17 countries, annualized revenue run rate of approximately $975 million and approximately 8,000 employees, CIBER’s IT specialists continuously build and upgrade our clients’ systems to “competitive advantage status.”  CIBER is included in the Russell 2000 Index and the S&P Small Cap 600 Index.  CIBER, ALWAYS ABLE.

 

Forward-Looking and Cautionary Statements

 

Statements contained in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in the company’s filings with the Securities and Exchange Commission.  CIBER undertakes neither intention nor obligation to publicly update or revise any forward-looking statements.  CIBER and the CIBER logo are trademarks or registered trademarks of CIBER, Inc.  Copyright© 2005.  All rights reserved.

 

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CIBER, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

In thousands, except per share data

 

2004

 

2005

 

2004

 

2005

 

Consulting services

 

$

199,933

 

$

231,658

 

$

373,222

 

$

462,731

 

Other revenues

 

8,345

 

9,297

 

15,111

 

17,789

 

Total revenues

 

208,278

 

240,955

 

388,333

 

480,520

 

 

 

 

 

 

 

 

 

 

 

Cost of consulting services

 

144,356

 

169,372

 

269,971

 

337,285

 

Cost of other revenues

 

6,176

 

5,185

 

11,193

 

9,947

 

Selling, general and administrative expenses

 

42,808

 

51,619

 

81,907

 

102,727

 

Amortization of intangible assets

 

1,007

 

1,479

 

1,616

 

3,059

 

Operating income

 

13,931

 

13,300

 

23,646

 

27,502

 

Other income (expense), net

 

(933

)

(2,501

)

(869

)

(3,922

)

Income before income taxes

 

12,998

 

10,799

 

22,777

 

23,580

 

Income tax expense

 

5,068

 

4,207

 

8,882

 

9,191

 

Net income

 

$

7,930

 

$

6,592

 

$

13,895

 

$

14,389

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – diluted

 

$

0.12

 

$

0.10

 

$

0.21

 

$

0.22

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares – diluted

 

74,297

 

72,447

 

73,874

 

72,497

 

 

For the three months ended June 30, 2004 and 2005, respectively, earnings per share – basic was $0.13 and $0.11 and weighted average shares – basic were 60,279 and 62,556.

 

For the six months ended June 30, 2004 and 2005, respectively, earnings per share – basic was $0.23 and $0.23 and weighted average shares – basic were 59,760 and 62,602.

 

5


 

CIBER, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

 

In thousands

 

December 31,
2004

 

June 30,
2005

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

44,446

 

$

28,207

 

Accounts receivable, net

 

206,108

 

209,074

 

Prepaid expenses and other current assets

 

18,163

 

16,646

 

Income taxes refundable

 

743

 

1,145

 

Deferred income taxes

 

5,421

 

4,823

 

Total current assets

 

274,881

 

259,895

 

 

 

 

 

 

 

Property and equipment, net

 

26,745

 

25,477

 

Intangible assets, net

 

449,645

 

438,982

 

Other assets

 

7,401

 

7,798

 

Total assets

 

$

758,672

 

$

732,152

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

28,200

 

$

26,984

 

Accrued compensation and related liabilities

 

46,491

 

53,666

 

Other accrued expenses and liabilities

 

50,405

 

44,064

 

Income taxes payable

 

10,914

 

8,424

 

Total current liabilities

 

136,010

 

133,138

 

 

 

 

 

 

 

Long-term line of credit - bank

 

48,704

 

29,334

 

Long-term debentures

 

175,000

 

175,000

 

Other long-term liabilities

 

17,418

 

17,622

 

Total liabilities

 

377,132

 

355,094

 

 

 

 

 

 

 

Minority interest

 

3,877

 

2,868

 

 

 

 

 

 

 

Shareholders’ equity

 

377,663

 

374,190

 

Total liabilities and shareholders’ equity

 

$

758,672

 

$

732,152

 

 

6


 

CIBER, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

Six Months Ended
June 30,

 

In thousands

 

2004

 

2005

 

Operating activities:

 

 

 

 

 

Net income

 

$

13,895

 

$

14,389

 

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

 

 

 

 

 

Depreciation

 

4,544

 

5,706

 

Amortization of intangible assets

 

1,616

 

3,059

 

Deferred income taxes

 

4,414

 

1,840

 

Provision for doubtful receivables

 

124

 

303

 

Other, net

 

1,661

 

1,930

 

Changes in operating assets and liabilities, net of the effects of acquisitions:

 

 

 

 

 

Accounts receivable

 

(11,737

)

(7,407

)

Other current and long-term assets

 

712

 

(103

)

Accounts payable

 

(758

)

(304

)

Accrued compensation and related liabilities

 

(4,605

)

8,539

 

Deferred revenue

 

10,168

 

383

 

Other accrued expenses and liabilities

 

(17,893

)

(7,751

)

Income taxes payable/refundable

 

4,473

 

(1,737

)

Net cash provided by operating activities

 

6,614

 

18,847

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

Acquisitions, net of cash acquired

 

(73,547

)

(6,559

)

Purchases of property and equipment, net

 

(3,149

)

(4,197

)

Net cash used in investing activities

 

(76,696

)

(10,756

)

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

Employee stock purchases and options exercised

 

4,947

 

3,145

 

Purchases of treasury stock

 

(5,958

)

(4,120

)

Repayment of debt of acquired company

 

(52,628

)

—

 

Payments on long-term bank line of credit (net)

 

—

 

(19,370

)

Minority shareholder capital contribution

 

—

 

271

 

Borrowings on term note

 

6,000

 

—

 

Payments on term note

 

(600

)

(1,200

)

Net cash used in financing activities

 

(48,239

)

(21,274

)

Effect of foreign exchange rate changes on cash

 

(1,337

)

(3,056

)

Net decrease in cash and cash equivalents

 

(119,658

)

(16,239

)

Cash and cash equivalents, beginning of period

 

132,537

 

44,446

 

Cash and cash equivalents, end of period

 

$

12,879

 

$

28,207

 

 

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Supplemental Information:

 

CIBER, Inc.

Supplementary Operating Results Analysis

For the Quarters Ended June 30, 2004 and March 31, 2005 and June 30, 2005

(unaudited)

($ In millions)

 

 

 

Three Months Ended

 

 

 

June 30, 2004

 

March 31, 2005

 

June 30, 2005

 

Revenue
By Divisions

 

Amount

 

% of
Revenue

 

Amount

 

% of
Revenue

 

Amount

 

% of
Revenue

 

U.S. Custom

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial*

 

$

89.7

 

43

 

$

88.4

 

37

 

$

88.6

 

37

 

Federal

 

39.2

 

19

 

42.2

 

18

 

41.7

 

17

 

State & Local

 

31.8

 

15

 

31.2

 

13

 

30.8

 

13

 

U.S. Package

 

22.4

 

11

 

24.9

 

10

 

26.4

 

11

 

Europe*

 

25.9

 

12

 

53.4

 

22

 

54.1

 

22

 

Corporate Elims.

 

-0.7

 

—

 

-0.5

 

—

 

-0.6

 

—

 

Total

 

208.3

 

100

 

$

239.6

 

100

 

$

241.0

 

100

 

 

Operating Income

 

 

 

% of Div.
Revenue

 

 

 

% of Div.
Revenue

 

 

 

% of Div.
Revenue

 

U.S. Custom

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial*

 

$

7.6

 

8.5

 

$

7.1

 

8.0

 

$

7.2

 

8.1

 

Federal

 

5.4

 

13.8

 

5.7

 

13.5

 

5.2

 

12.5

 

State & Local

 

2.9

 

9.1

 

2.3

 

7.4

 

1.6

 

5.2

 

U.S. Package

 

2.0

 

8.9

 

2.6

 

10.4

 

2.8

 

10.6

 

Europe*

 

2.2

 

8.5

 

2.3

 

4.3

 

2.3

 

4.3

 

Corporate Expense

 

-5.2

 

-2.5

 

-4.2

 

-1.8

 

-4.3

 

-1.8

 

EBITA

 

$

14.9

 

7.2

 

$

15.8

 

6.6

 

14.8

 

6.1

 

Amortization Expense

 

1.0

 

0.5

 

1.6

 

0.7

 

1.5

 

0.6

 

Operating Income

 

$

13.9

 

6.7

 

$

14.2

 

5.9

 

13.3

 

5.5

 

 

*U.S. includes India’s results; Europe includes Eastern Asia

 

Average Headcounts: (~)

 

 

 

 

 

 

 

Billable

 

6,600

 

7,200

 

7,150

 

Total

 

7,500

 

8,200

 

8,150

 

 

 

 

 

 

 

 

 

Utilization (~)

 

89

%

89

%

88

%

 

 

 

 

 

 

 

 

Avg. Hourly Bill Rates (~)

 

$

70.00

 

$

75.00

 

$

75.00

 

 

###

 

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