EX-99.1 2 a12-5634_1ex99d1.htm EX-99.1

Exhibit 99.1

 

GRAPHIC

 

 

Contact:

Gary Kohn

Robin Caputo

 

 

Investor Relations

Media Relations

 

 

303-625-5256

303-267-3876

 

 

gkohn@ciber.com

rcaputo@ciber.com

 

CIBER REPORTS FOURTH QUARTER 2011 RESULTS

 

GREENWOOD VILLAGE, Colo., Feb. 23, 2012— CIBER, Inc. (NYSE: CBR), a global information technology consulting, services and outsourcing company, today reported results for the fourth quarter of 2011.

 

The Company has made a strategic decision to sell its Federal division to focus on its core offerings.  The Company anticipates completing the sale in the first quarter of 2012 and therefore the Federal division is presented as a discontinued operation and its results are not included in results from continuing operations for all periods presented in CIBER’s consolidated financial statements herein, unless otherwise noted.  A schedule of quarterly results from continuing operations and Federal as a discontinued operation for 2011 and 2010 is included with this release.

 

Highlights from continuing operations for the fourth quarter 2011 include:

 

·                  Revenue of $238.9 million, a 5% decrease

·                  Gross margin of 25.9%

·                  Operating income of $5.0 million

·                  Last year’s fourth quarter operating loss was $3.7 million, or operating income of $3.6 million excluding $7.3 million of bad debt and project write-off charges

·                  Net income of $2.2 million, or $0.03 per share

·                  Last year’s fourth quarter net loss was $1.6 million or $0.02 per share.  Excluding the bad debt and project write-off charges net income was $2.8 million, or $0.04 per share

·                  Cash on hand at quarter end of $65.6 million, and bank debt outstanding of $66.2 million

·                  For the full-year including Federal, cash flow from operations of $31.5 million, capital expenditures of $15.4 million, and free cash flow of $16.1 million

 

Significant highlights since year end:

 

·                  Announced the pending sale of the Federal division

·                  Paid down $25 million of debt under the senior credit facility through the repatriation of international cash, with no cash-tax impact

·                  Progress towards refinancing the current senior credit facility

 

President and Chief Executive Officer Dave Peterschmidt said, “We have made measured progress this past year on the turnaround of CIBER.  The significant actions we have taken, including stabilizing North America, lowering our risk profile, agreeing to sell our Federal business and improving delivery quality, have come about by the changes we have made on several fronts including strengthening our leadership and overhauling our operational processes.  The results of these actions are now being reflected in a stronger balance sheet.  We do, however, understand the importance of delivering improved operating profits and cash flows and remain confident that we will achieve these goals as we move through 2012.”

 

Peterschmidt continued, “My focus is on continuing the momentum we have created in North America, and carrying that momentum to our International performance.  As part of this effort, Rick Genovese has been promoted to COO

 



 

with responsibility for global operations.  His charge is to unify the organization globally to ensure that CIBER is truly operating as one company.  While much work remains in 2012, I am confident that we are building a business model that will generate improved returns to shareholders as we drive revenue growth and profitability in the back half of this year.”

 

Claude Pumilia, Executive Vice President and Chief Financial Officer, commented, “I am pleased to have taken steps, as promised, to strengthen our balance sheet.  In January, we effectively deployed international cash to pay down $25 million of debt and plan to reduce total debt further by utilizing at least a portion of the net cash proceeds from the Federal sale.  In this past quarter, we improved our cash collections, which resulted in a meaningful reduction in days sales outstanding, and enabled us to turn cash flow positive for the year.  I expect improved cash flow in 2012 as our financial performance improves in the second half of the year.”

 

Fourth Quarter Financial Results from Continuing Operations

 

Revenue of $238.9 million decreased 5% on a reported and constant currency basis compared with the fourth quarter last year.  The North America segment experienced a decline of 12%.  This rate of the year-over-year revenue decline has lessened sequentially from the third quarter.  The International division’s revenue growth was 3% or 4% constant currency.

 

Gross margin for the fourth quarter was 25.9%.  Selling, general and administrative expenses (SG&A) in the quarter were 23.8% of revenue.  CIBER has improved both its gross margin and SG&A cost structure through increased utilization, targeted cost reductions, as well as less bad debt and project write-off charges.

 

Fourth quarter operating income was $5.0 million with an operating margin of 2.1%.  This compares to last year’s fourth quarter operating loss of $3.7 million which included $7.3 million of bad debt and project write-off charges.  Excluding these charges, operating income in the fourth quarter 2010 was $3.6 million with an operating margin of 1.4%.

 

Net income for the fourth quarter was $2.2 million or $0.03.  Fourth quarter 2010 net loss was $1.6 million or $0.02 per share including the bad debt and project write-off charges.  Excluding the charges, fourth quarter 2010 net income was $2.8 million, or $0.04 per share.  The decrease in net income and EPS was driven by higher tax expense and interest expense.

 

The International division, which represented 49% of consolidated revenue, delivered revenue growth for the quarter of 3%, or 4% on a constant currency basis over the fourth quarter 2010.  Revenue growth slowed in light of the economic environment in Europe as well as lower billable headcount at two large customers.  Operating margin for the segment was 6.2%.  Gross and operating margins were down slightly from last year’s fourth quarter driven mostly from lower revenue.

 

The North American division, 43% of consolidated revenue, saw revenue decline 12% compared with 2010’s fourth quarter.  Gross margin in the fourth quarter was in the high twenties, an improvement from last year’s fourth quarter, as a result of fewer project overruns and improvements in utilization.  Operating margin, aided by cost reductions, was 4.6%.  The improved utilization rate and lower cost base should drive increased operating margins within this division throughout 2012.

 

Capital Deployment and Liquidity

 

CIBER’s cash balance at December 31, 2011 was $65.6 million, while the total outstanding balance on the senior credit facility was $66.2 million.   On January 31, 2012 the company met its obligation to repay $25 million under the facility through the repatriation of a portion of the International division’s cash, with no cash-tax impact.  The company also anticipates using at least a portion of the cash proceeds from the sale of its Federal division to reduce outstanding debt.

 

2



 

Including Federal, cash flow from operating activities for the year was $31.5 million; capital expenditures totaled $15.4 million; yielding free cash flow of $16.1 million.

 

Through aggressive cash management and structural improvements in cash collections, CIBER reduced days sales outstanding as of December 31, 2011 to 53 days.

 

Investor and Analyst Conference Call

 

CIBER President and Chief Executive Officer Dave Peterschmidt invites you to participate in a conference call or audiocast today at 11:00 a.m. Eastern Time to discuss the Company’s financial results.

 

The conference call and audiocast of the conference call will be available to the public.  The audiocast will be available at www.ciber.com/cbr.  To participate in the conference call, dial 866-362-5158 (U.S.) or +1-617-597-5397 (outside the U.S.) ten minutes prior to the start of the call and provide the operator with the pass code 35338634.

 

A replay of the call and audiocast will be available one hour after the call ends through Mar. 23, 2012.  To access the telephone replay, dial 888-286-8010 (U.S.) or +1- 617-801-6888 (outside the U.S.) and use the pass code 73600296.  The audiocast replay will be available at www.ciber.com/cbr.

 

Non-GAAP Financial Information

 

CIBER presents a number of non-GAAP measurements because management believes that these metrics provide meaningful supplemental information in addition to the GAAP metrics and provide comparability and consistency to prior periods.  These non-GAAP measurements include: Free cash flow (cash flow from operations less capital expenditures); International revenue change adjusted for currency; and fourth quarter 2010 operating income from continuing operations, operating margin from continuing operations, net income from continuing operations and EPS from continuing operations excluding $7.3 million of bad debt and project write-off charges.

 

Reconciliations of non-GAAP to comparable GAAP measures are available in the body of this release as well as the accompanying schedules.   These reconciliations may also be found in the Investor Relations section of the Company’s website at www.ciber.com/cbr.

 

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,” “potential,” “project,” “should,” and “will” and similar expressions, are intended to identify forward-looking statements.  For example, we make certain forward-looking statements regarding our current expectations for revenue, cash flow, debt balances and profitability for certain of our business units or the Company for 2012 and the future.  These statements reflect a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by our forward-looking statements.  These risks include, without limitation, risks that: (1) economic and political conditions, including regulatory or legislative action, adversely affect us or our clients’ businesses and levels of business activity; (2) the sale of the Federal division does not close as expected; (3) the refinancing of our credit facility is not completed as expected, in which case we face covenant issues; (4) we cannot expand and develop our services and solutions in response to changes in technology and client demand; (5) we cannot compete as effectively as we expect in the highly competitive consulting, systems integration and technology and outsourcing markets; (6) our work in the government contracting environment exposes us to additional risks; (7) our clients may terminate their contracts with us or they may be unable or unwilling to pay us for our services, which may impact our accounting

 

3



 

assumptions; (8) our outsourcing services subject us to operational and financial risk; (9) we cannot maintain favorable pricing and utilization rates; (10) our business is restricted by our current level of indebtedness and we could breach our financial covenants, and/or be unable to amend, extend or replace our current debt facility under favorable terms; (11) we cannot anticipate the cost and complexity of performing our work or we are not able to control our costs especially on fixed price contracts; (12) our global operations are subject to complex risks, some of which are beyond our control, including, but not limited to, fluctuations in foreign exchange rates; (13) we cannot balance our resources with client demand or hire sufficient employees with the required skills and background; (14) we may incur liability from our subcontractors’ or other third parties’ failure to deliver their project contributions on time or at all; (15) we cannot manage the organizational challenges associated with our size or our business strategy; (16) our share price could fluctuate due to numerous factors, including variability in revenues, operating results and profitability; and/or (17) other factors discussed from time to time in the Company’s news releases and public statements, as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in the Company’s Form 10-Q and most recent Annual Report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission.  Most of these factors are beyond CIBER’s ability to predict or control.  Forward-looking statements are not guarantees of performance and speak only as of the date they are made, and CIBER undertakes 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, Inc. is a global information technology consulting, services and outsourcing company applying practical innovation through services and solutions that deliver tangible results for both commercial and government clients. Services include application development and management, ERP implementation, change management, project management, systems integration, infrastructure management and end-user computing, as well as strategic business and technology consulting. Founded in 1974 and headquartered in Greenwood Village, Colorado, CIBER has more than 8,500 employees and subcontractors and operates in 18 countries, serving clients in North America, Europe and Asia/Pacific. Annual revenue in 2011 was $1.1 billion. CIBER trades on the New York Stock Exchange (NYSE: CBR), and is included in the Russell 2000 Index and the S&P Small Cap 600 Index. For more information, visit www.ciber.com.

 

4



 

CIBER, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended 
December 31,

 

Year Ended December 31,

 

 

 

2011

 

2010

 

2011

 

2010

 

REVENUES

 

 

 

 

 

 

 

 

 

Consulting services

 

$

226,174

 

$

237,479

 

$

929,409

 

$

907,470

 

Other revenue

 

12,687

 

13,736

 

47,517

 

46,328

 

Total revenues

 

238,861

 

251,215

 

976,926

 

953,798

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

Cost of consulting services

 

169,398

 

182,842

 

710,989

 

686,267

 

Cost of other revenue

 

7,525

 

8,096

 

27,468

 

28,368

 

Selling, general and administrative

 

56,814

 

63,198

 

230,637

 

226,997

 

Goodwill impairment

 

 

 

16,300

 

82,000

 

Amortization of intangible assets

 

89

 

764

 

1,534

 

3,213

 

Total operating expenses

 

233,826

 

254,900

 

986,928

 

1,026,845

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS

 

5,035

 

(3,685

)

(10,002

)

(73,047

)

 

 

 

 

 

 

 

 

 

 

Interest income

 

580

 

422

 

987

 

614

 

Interest expense

 

(2,526

)

(1,830

)

(7,898

)

(6,553

)

Other income (expense), net

 

481

 

47

 

(2,524

)

61

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

3,570

 

(5,046

)

(19,437

)

(78,925

)

Income tax expense (benefit)

 

1,378

 

(3,453

)

32,668

 

(23,389

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

2,192

 

(1,593

)

(52,105

)

(55,536

)

Loss from discontinued operations, net of income tax

 

(18,519

)

(1,699

)

(15,127

)

(22,154

)

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET LOSS

 

(16,327

)

(3,292

)

(67,232

)

(77,690

)

Net income (loss) attributable to noncontrolling interests

 

(176

)

22

 

29

 

(530

)

 

 

 

 

 

 

 

 

 

 

NET LOSS ATTRIBUTABLE TO CIBER, INC.

 

$

(16,151

)

$

(3,314

)

$

(67,261

)

$

(77,160

)

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per share attributable to CIBER, Inc.:

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.03

 

$

(0.02

)

$

(0.73

)

$

(0.79

)

Discontinued operations

 

(0.25

)

(0.03

)

(0.21

)

(0.32

)

Basic and diluted loss per share attributable to CIBER, Inc.

 

$

(0.22

)

$

(0.05

)

$

(0.94

)

$

(1.11

)

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

72,484

 

70,029

 

71,831

 

69,626

 

Diluted

 

72,484

 

70,029

 

71,831

 

69,626

 

 

5



 

CIBER, Inc.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

December 31,
2011

 

December 31,
2010

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

65,567

 

$

69,329

 

Accounts receivable, net of allowances of $1,422 and $7,367, respectively

 

182,359

 

216,286

 

Prepaid expenses and other current assets

 

25,700

 

23,379

 

Deferred income taxes

 

3,302

 

11,373

 

Current assets of discontinued operations

 

20,382

 

24,945

 

Total current assets

 

297,310

 

345,312

 

 

 

 

 

 

 

Property and equipment, net of accumulated depreciation of $64,929 and $58,159, respectively

 

26,845

 

25,023

 

Goodwill

 

275,504

 

294,644

 

Other intangible assets, net

 

649

 

2,154

 

Other assets

 

6,900

 

9,318

 

Long-term assets of discontinued operations

 

17,862

 

45,913

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

625,070

 

$

722,364

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Liabilities:

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current portion of long-term debt

 

$

25,571

 

$

10,473

 

Accounts payable

 

35,112

 

47,835

 

Accrued compensation and related liabilities

 

60,124

 

67,013

 

Deferred revenue

 

22,308

 

21,194

 

Income taxes payable

 

8,613

 

9,760

 

Other accrued expenses and liabilities

 

45,454

 

47,156

 

Current liabilities of discontinued operations

 

7,310

 

9,517

 

Total current liabilities

 

204,492

 

212,948

 

 

 

 

 

 

 

Long-term debt

 

41,380

 

77,879

 

Deferred income taxes

 

15,462

 

6,159

 

Other long-term liabilities

 

6,729

 

5,878

 

Total liabilities

 

268,063

 

302,864

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

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, 74,487 shares issued

 

745

 

745

 

Treasury stock, at cost, 1,919 and 4,363 shares, respectively

 

(10,998

)

(25,003

)

Additional paid-in capital

 

330,088

 

325,177

 

Retained earnings

 

44,337

 

118,113

 

Accumulated other comprehensive income (loss)

 

(7,006

)

661

 

Total CIBER, Inc. shareholders’ equity

 

357,166

 

419,693

 

Noncontrolling interests

 

(159

)

(193

)

Total equity

 

357,007

 

419,500

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

625,070

 

$

722,364

 

 

6



 

CIBER, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Year Ended December 31,

 

 

 

2011

 

2010

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Consolidated net loss

 

$

(67,232

)

$

(77,690

)

Adjustments to reconcile consolidated net loss to net cash provided by operating

 

 

 

 

 

Loss from discontinued operations

 

15,127

 

22,154

 

Goodwill impairment

 

16,300

 

82,000

 

Depreciation

 

11,184

 

11,108

 

Amortization of intangible assets

 

1,534

 

3,213

 

Deferred income tax expense (benefit)

 

26,900

 

(30,443

)

Provision for doubtful receivables

 

337

 

6,369

 

Share-based compensation expense

 

4,678

 

3,881

 

Change in value of contingent consideration

 

3,898

 

462

 

Amortization of debt costs

 

2,182

 

1,915

 

Other, net

 

298

 

2,417

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

Accounts receivable

 

30,540

 

(41,939

)

Other current and long-term assets

 

(1,497

)

(786

)

Accounts payable

 

(12,693

)

16,607

 

Accrued compensation and related liabilities

 

(3,176

)

5,740

 

Other current and long-term liabilities

 

(2,887

)

16,660

 

Income taxes payable/refundable

 

(2,555

)

4,337

 

Cash provided by operating activities — continuing operations

 

22,938

 

26,005

 

Cash provided by operating activities — discontinued operations

 

8,584

 

9,116

 

Cash provided by operating activities

 

31,522

 

35,121

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

Acquisitions, net of cash acquired

 

(895

)

(3,580

)

Purchases of property and equipment, net

 

(15,364

)

(12,968

)

Cash used in investing activities — continuing operations

 

(16,259

)

(16,548

)

Cash used in investing activities — discontinued operations

 

(67

)

(1,022

)

Cash used in investing activities

 

(16,326

)

(17,570

)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

Borrowings on long-term debt

 

377,676

 

385,481

 

Payments on long-term debt

 

(399,483

)

(396,618

)

Employee stock purchases and options exercised

 

7,490

 

2,384

 

Purchases of treasury stock

 

 

(2,444

)

Credit facility fees paid

 

(2,000

)

(685

)

Acquisition of noncontrolling interest

 

 

(1,558

)

Other, net

 

(1,019

)

61

 

Cash used in financing activities — continuing operations

 

(17,336

)

(13,379

)

Effect of foreign exchange rate changes on cash and cash equivalents

 

(1,622

)

(2,267

)

Net increase (decrease) in cash and cash equivalents

 

(3,762

)

1,905

 

Cash and cash equivalents, beginning of period

 

69,329

 

67,424

 

Cash and cash equivalents, end of period

 

$

65,567

 

$

69,329

 

 

7



 

CIBER, Inc.

SUMMARY SEGMENT DATA

(Dollars in thousands)

(Unaudited)

 

Summary Segment Analysis

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

 

2011

 

2010

 

Change

 

2011

 

2010

 

Change

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$

116,350

 

$

112,559

 

3

%

$

471,034

 

$

385,155

 

22

%

North America

 

101,761

 

115,858

 

(12

)%

419,564

 

487,219

 

(14

)%

IT Outsourcing

 

23,235

 

24,783

 

(6

)%

94,717

 

88,968

 

6

%

Total segment revenues

 

241,346

 

253,200

 

(5

)%

985,315

 

961,342

 

2

%

Corporate/Inter-segment

 

(2,485

)

(1,985

)

 

 

(8,389

)

(7,544

)

 

 

Total revenues

 

$

238,861

 

$

251,215

 

(5

)%

$

976,926

 

$

953,798

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$

7,238

 

$

7,268

 

%

$

29,214

 

$

19,842

 

47

%

North America

 

4,688

 

668

 

602

%

8,541

 

30,710

 

(72

)%

IT Outsourcing

 

1,617

 

(239

)

777

%

1,958

 

(518

)

478

%

Total segment operating income

 

13,543

 

7,697

 

76

%

39,713

 

50,034

 

(21

)%

Corporate expenses

 

(8,218

)

(10,382

)

 

 

(31,343

)

(36,800

)

 

 

Unallocated expenses of discontinued operations

 

(201

)

(236

)

 

 

(538

)

(1,068

)

 

 

EBITA

 

5,124

 

(2,921

)

 

 

7,832

 

12,166

 

 

 

Goodwill impairment

 

 

 

 

 

(16,300

)

(82,000

)

 

 

Amortization of intangible assets

 

(89

)

(764

)

 

 

(1,534

)

(3,213

)

 

 

Total operating income (loss) from continuing operations

 

$

5,035

 

$

(3,685

)

 

 

$

(10,002

)

$

(73,047

)

 

 

 

Segments as Percent of Total Segment Revenue and Total Segment Operating Income

(excluding Corporate/Inter-segment and corporate expenses, goodwill impairment and amortization)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

 

2011

 

2010

 

2011

 

2010

 

Revenues:

 

 

 

 

 

 

 

 

 

International

 

48

%

44

%

48

%

40

%

North America

 

42

%

46

%

42

%

51

%

IT Outsourcing

 

10

%

10

%

10

%

9

%

Total segment revenues

 

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

International

 

53

%

94

%

74

%

40

%

North America

 

35

%

9

%

21

%

61

%

IT Outsourcing

 

12

%

(3

)%

5

%

(1

)%

Total segment operating income

 

100

%

100

%

100

%

100

%

 

Segment Operating Margins

(excluding corporate expenses, goodwill impairment and amortization)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

 

2011

 

2010

 

2011

 

2010

 

Operating margin:

 

 

 

 

 

 

 

 

 

International

 

6

%

6

%

6

%

5

%

North America

 

5

%

1

%

2

%

6

%

IT Outsourcing

 

7

%

(1

)%

2

%

(1

)%

Total segment operating margin

 

6

%

3

%

4

%

5

%

 

8



 

CIBER, Inc.

QUARTERLY RESULTS OF OPERATIONS

(Dollars in thousands)

(Unaudited)

 

 

 

Three months ended

 

 

 

Dec. 31,
2011

 

Sept. 30,
2011

 

June 30,
2011

 

Mar. 31, 
2011

 

Dec. 31, 
2010

 

Sept. 30, 
2010

 

June 30, 
2010

 

Mar. 31, 
2010

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consulting services

 

$

226,174

 

$

231,064

 

$

228,614

 

$

243,557

 

$

237,479

 

$

225,938

 

$

222,423

 

$

221,630

 

Other revenue

 

12,687

 

11,101

 

12,373

 

11,356

 

13,736

 

11,032

 

10,517

 

11,043

 

Total revenues

 

238,861

 

242,165

 

240,987

 

254,913

 

251,215

 

236,970

 

232,940

 

232,673

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of consulting services

 

169,398

 

174,223

 

184,705

 

182,663

 

182,842

 

170,121

 

167,146

 

166,158

 

Cost of other revenue

 

7,525

 

6,756

 

6,704

 

6,483

 

8,096

 

7,622

 

6,014

 

6,636

 

Selling, general and administrative

 

56,814

 

55,199

 

60,083

 

58,541

 

63,198

 

52,315

 

59,145

 

52,339

 

Goodwill impairment

 

 

 

16,300

 

 

 

 

82,000

 

 

Amortization of intangible assets

 

89

 

131

 

682

 

632

 

764

 

783

 

716

 

950

 

Total operating expenses

 

233,826

 

236,309

 

268,474

 

248,319

 

254,900

 

230,841

 

315,021

 

226,083

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS

 

5,035

 

5,856

 

(27,487

)

6,594

 

(3,685

)

6,129

 

(82,081

)

6,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

580

 

203

 

148

 

56

 

422

 

70

 

29

 

93

 

Interest expense

 

(2,526

)

(2,005

)

(1,875

)

(1,492

)

(1,830

)

(1,520

)

(1,314

)

(1,889

)

Other income (expense), net

 

481

 

469

 

(2,689

)

(785

)

47

 

(608

)

561

 

61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

3,570

 

4,523

 

(31,903

)

4,373

 

(5,046

)

4,071

 

(82,805

)

4,855

 

Income tax expense (benefit)

 

1,378

 

3,143

 

27,070

 

1,077

 

(3,453

)

1,171

 

(22,837

)

1,730

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

2,192

 

1,380

 

(58,973

)

3,296

 

(1,593

)

2,900

 

(59,968

)

3,125

 

Income (loss) from discontinued operations, net of income tax

 

(18,519

)

1,784

 

708

 

900

 

(1,699

)

464

 

(21,094

)

175

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS)

 

(16,327

)

3,164

 

(58,265

)

4,196

 

(3,292

)

3,364

 

(81,062

)

3,300

 

Net income (loss) attributable to noncontrolling interests

 

(176

)

24

 

108

 

73

 

22

 

(38

)

(289

)

(225

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO CIBER, INC.

 

$

(16,151

)

$

3,140

 

$

(58,373

)

$

4,123

 

$

(3,314

)

$

3,402

 

$

(80,773

)

$

3,525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share attributable to CIBER, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.03

 

$

0.02

 

$

(0.82

)

$

0.05

 

$

(0.02

)

$

0.04

 

$

(0.86

)

$

0.05

 

Discontinued operations

 

(0.25

)

0.02

 

0.01

 

0.01

 

(0.03

)

0.01

 

(0.30

)

 

Basic earnings (loss) per share attributable to CIBER, Inc.

 

$

(0.22

)

$

0.04

 

$

(0.81

)

$

0.06

 

$

(0.05

)

$

0.05

 

$

(1.16

)

$

0.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share attributable to CIBER, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.03

 

$

0.02

 

$

(0.82

)

$

0.05

 

$

(0.02

)

$

0.04

 

$

(0.86

)

$

0.05

 

Discontinued operations

 

(0.25

)

0.02

 

0.01

 

0.01

 

(0.03

)

0.01

 

(0.30

)

 

Diluted earnings (loss) per share attributable to CIBER, Inc.

 

$

(0.22

)

$

0.04

 

$

(0.81

)

$

0.06

 

$

(0.05

)

$

0.05

 

$

(1.16

)

$

0.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

72,484

 

72,209

 

71,695

 

70,936

 

70,029

 

69,734

 

69,389

 

69,353

 

Diluted

 

72,484

 

72,609

 

71,695

 

72,091

 

70,029

 

69,929

 

69,389

 

69,633

 

 

9



 

CIBER, Inc.

NON-GAAP FINANCIAL INFORMATION

(Dollars in millions, except per share amounts)

(Unaudited)

 

CIBER reports its financial results in accordance with 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 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 December 31, 2011

 

 

 

Constant Currency
Revenue Growth

 

Foreign Exchange 
Impact

 

GAAP Reported
Revenue Growth

 

Revenues:

 

 

 

 

 

 

 

Consolidated

 

(5

)%

%

(5

)%

 

 

 

 

 

 

 

 

International

 

4

%

(1

)%

3

%

 

Operating Income from Continuing Operations Excluding Bad Debt Expense and Project Write-Off Charges

 

 

 

Three Months Ended December 31,

 

 

 

2011

 

2010

 

 

 

 

 

 

 

GAAP operating income (loss) from continuing operations

 

$

5.0

 

$

(3.7

)

Bad debt expense and project write-offs, pre-tax

 

 

7.3

 

Operating income from continuing operations, excluding bad debt expense and project write-offs

 

$

5.0

 

$

3.6

 

 

 

 

 

 

 

GAAP operating income (loss) margin from continuing operations

 

2.1

%

(1.5

)%

 

 

 

 

 

 

Operating income margin from continuing operations, excluding bad debt expense and project write-offs

 

2.1

%

1.4

%

 

Net Income from Continuing Operations Excluding Bad Debt Expense and Project Write-Off Charges

 

 

 

Three Months Ended December 31,

 

 

 

2011

 

2010

 

 

 

 

 

 

 

GAAP net income (loss) from continuing operations

 

$

2.2

 

$

(1.6

)

Bad debt expense and project write offs, after tax

 

 

4.4

 

Net income from continuing operations, excluding bad debt expense and project write-offs

 

$

2.2

 

$

2.8

 

 

Earnings (Loss) Per Share from Continuing Operations Excluding Bad Debt Expense and Project Write-Off Charges

 

 

 

Three Months Ended December 31,

 

 

 

2011

 

2010

 

 

 

 

 

 

 

GAAP earnings (loss) per share from continuing operations

 

$

0.03

 

$

(0.02

)

Bad debt expense and project write-offs

 

 

0.06

 

Earnings per share from continuing operations, excluding bad debt expense and project write-offs

 

$

0.03

 

$

0.04

 

 

10