EX-99.1 2 a13-22951_1ex99d1.htm EX-99.1

Exhibit 99.1

 

GRAPHIC

 

Ciber, Inc.

6363 S. Fiddler’s Green Circle, Suite 1400

Greenwood Village, CO  80111

www.ciber.com

 

CIBER REPORTS THIRD QUARTER 2013 RESULTS

 

GREENWOOD VILLAGE, Colo., October 29, 2013— Ciber, Inc. (NYSE: CBR), a leading global information technology consulting, services and outsourcing company, today reported results for the third quarter of 2013.

 

Highlights From Continuing Operations for the Third Quarter 2013 Include:

·                  Revenue of $215.1 million, a 2% increase, flat in constant currency

·                  Operating income of $0.5 million, before $14.0 million charge associated with previously announced restructuring program, representing an operating income margin of 0.2%

·                  Net loss from continuing operations of $13.5 million, or net income from continuing operations of $1.4 million before restructuring charges and CFO transition costs, or $0.02 per share

·                  Operating cash flow from continuing operations of $12.7 million

 

President and Chief Executive Officer Dave Peterschmidt said, “Third quarter results reflected a continuation of the trends we discussed in the second quarter.  We made steady progress on the shift in our business mix to more ISV and Managed Services projects.  As a result, we believe in our ability to grow the business in a consistent and profitable way going forward.”

 

Mike Lehman, Chief Financial Officer, commented, “I am confident that there are numerous opportunities to improve our overall business model.  I believe the operational disciplines and processes within North America are quite solid.  The focus is now squarely on investing in and maintaining our core ADM business.  On the international front, there are multiple opportunities for margin expansion.  As part of the restructuring and transformation, I am encouraged by the adoption of best practices and a renewed focus on utilization and use of global delivery resources.  All transitions take time, but I am encouraged by the energy and focus I see here.”

 

Market Highlights in the Third Quarter Include:

 

·                  A world leader in automobile and equipment rental selected Ciber to implement Infor’s M3 equipment service management and rental software worldwide.  Ciber will assist with replacing the company’s existing equipment rental management systems with a comprehensive solution for managing assets, projects, rentals and sales.

 

·                  One of the largest municipal electric utilities in the U.S. selected Ciber to implement SuccessFactors, an, SAP-owned, cloud-based solution for talent management. The engagement will support strategic human resources and safety for this supplier of electricity to more than one million customers.

 



 

·                  One of the world’s largest online retailers of books and media extended its contract with Ciber for support of SAP software and the organization’s business warehouse. The engagement will be staffed with employees from Ciber’s SAP Center of Excellence in Germany.

 

·                  A world-renowned resort operator expanded its managed services contracts with Ciber. In addition to an ongoing business analysis managed services engagement, Ciber now is providing managed services for program and project management. The multi-million dollar contracts are scheduled to run for three years.

 

Third-Quarter Financial Results from Continuing Operations

 

Revenue of $215.1 million increased 2%, or flat in constant currency, compared with last year’s third quarter.  Sequentially from the second quarter of 2013, revenue was down 2% in U.S. dollars, and down 3% in constant currency.

 

Gross margin for the third quarter was 25.1%, compared with 25.3% in last year’s third quarter and 25.4% in the second quarter of 2013.

 

Selling, general and administrative expenses (SG&A) in the third quarter were $53.5 million.  Excluding CFO transition costs, SG&A in the third quarter was $50.9 million, a $2.0 million or 4% increase from the third quarter of last year, and a 1% increase sequentially.

 

Third quarter 2013 operating income from continuing operations of $0.5 million, before restructuring charges of $14.0 million, yielded an operating margin of 0.2%, compared to 2.0% in the prior-year third quarter, and 2.6% compared to the second quarter of 2013.

 

Net income from continuing operations, before restructuring charges and CFO transition costs, for the third quarter of 2013 was $1.4 million, or $0.02 per share. Including restructuring and CFO transition costs, net loss from continuing operations was $13.5 million in the quarter.  Last year’s third quarter net income from continuing operations was $195 thousand, or break-even on a per diluted share basis.  For the second quarter of 2013, net income from continuing operations, before restructuring charges, was $3.4 million, or $0.04 per diluted share.

 

Revenue in the International division was $110.9 million for the third quarter of 2013, which was up nearly 9% compared to the year-ago third quarter, and up 5% in constant currency. Compared to the second quarter of 2013, International revenue was down 3% in both USD and constant currency.  Operating margin of 4.1% was up 30 basis points compared to the third quarter of 2012 and down 120 basis points from the second quarter of 2013.

 

The North American division posted revenue of $104.9 million, down 4% from the year-ago third quarter and down 2% compared to the second quarter of 2013.  Operating margin of 8.1% improved 90 basis points from the year-ago third quarter and 10 basis points from the second quarter of 2013.

 

Capital Deployment and Liquidity

 

Ciber’s cash balance at the end of the third quarter of 2013 was $32.9 million. The outstanding balance on the credit facility was $17.6 million.

 

Cash flow used in operating activities (continuing operations) year-to-date through September 30 was $4 million, an improvement of $28 million versus the prior year.  Days Sales Outstanding (DSO) were 63 days. Capital expenditures totaled $4.1 million in the quarter.

 



 

Continuing Operations

 

For a recap of historical comparisons, please refer to Ciber’s most recent 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 www.ciber.com/cbr.

 

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 8:30 a.m. Eastern Time to discuss the Company’s financial results.

 

The live audiocast of the conference call will be available to the public at www.ciber.com/cbr. To participate in the conference call, dial 866-318-8611 (U.S.) or +1-617-399-5130 (outside the U.S.) ten minutes prior to the start of the call and provide the operator with the pass code 89918145.

 

A replay of the call and audiocast will be available one hour after the call ends through November 28, 2013.  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 14204006.   The webcast 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: third quarter 2013 revenue change year-over-year adjusted for currency; third quarter 2013 year-to-date revenue change year-over-year adjusted for currency; third quarter 2013 sequential revenue change adjusted for currency; international third quarter 2013 revenue change year-over-year adjusted for currency; International third quarter 2013 year-to-date revenue change year-over-year adjusted for currency; International third quarter 2013 sequential revenue change adjusted for currency; third quarter 2013 SG&A expenses adjusted for CFO transition costs; third quarter 2013 operating income and operating margin adjusted for restructuring charges and CFO transition costs; second quarter 2013 operating margin adjusted for restructuring charges and CFO transition costs; third quarter 2012 operating margin adjusted for restructuring charges and CFO transition costs; third quarter 2013 net loss from continuing operations and net loss per share from continuing operations adjusted for restructuring charges and CFO transition costs; second quarter 2013 net income from continuing operations and net income per diluted share from continuing operations adjusted for restructuring charges and CFO transition costs; and third quarter 2012 net income from continuing operations and net income per diluted share from continuing operations adjusted for restructuring charges and CFO transition costs. Reconciliations of non-GAAP to comparable 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 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,” “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, risks that: our results of operations may be adversely affected if we are unable to execute on the key elements of our strategic plan; we may experience declines in revenue and profitability if we do not accurately estimate the cost of engagements conducted on a fixed-price basis; a data security or privacy breach could adversely affect our business; our business could be adversely affected if our clients are not satisfied with our services, and we could face damage to our professional reputation and/or legal liability; our future success depends on our ability to continue to retain and attract qualified sales, delivery and technical employees; our results of operations can be adversely affected by economic conditions and the impacts of economic conditions on our clients’ operations and technology spending; if we are unable to collect our receivables, our results of operations and cash flows could be adversely affected; our Credit Agreement, an asset-based loan facility, limits our operational and financial flexibility; our revenues, operating results and profitability will vary from quarter to quarter, which may result in increased volatility in the price of our stock; termination of a contract by a significant client and/or cancellation with short notice could adversely affect our results of operations; our international operations are susceptible to different financial and operational risks than our domestic operations; the IT services industry, in the U.S. and internationally, is highly competitive, with increased focus on offshore capability and we may not be able to compete effectively; our presence in India may expose us to operational risks due to regulatory, economic, political, and other uncertainties; if we are not able to anticipate and keep pace with rapid changes in technology, our business will be negatively affected; we could incur additional losses due to further impairment in the carrying value of our goodwill; we depend on contracts with various public sector agencies for a significant portion of our revenue and, if the spending policies or budget priorities of these agencies change, we could lose revenue; unfavorable government audits could require us to adjust previously reported operating results, to forego anticipated revenue and subject us to penalties and sanctions; our services or solutions could infringe upon the intellectual property rights of others, or we might lose our ability to utilize rights we claim in intellectual property or the intellectual property of others; possible future consideration on the sale of certain contracts and assets associated with our information technology outsourcing practice may not be realized; we have adopted 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, thus affecting the market price of our securities.  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, 2012, Form 10-Q for the quarter ended June 30, 2013 and other documents filed with or furnished to the Securities and Exchange Commission. 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 leading global IT consulting company with some 6,700 consultants and contractors in North America, Europe and Asia/Pacific, and approximately $1 billion in annual revenue. Client focused and results driven, 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.

 

###

 

Contact:

Christian Mezger

Investor Relations

303-267-3857

cmezger@ciber.com

 

Betsy Loeff

Media Relations

303-967-1304

bloeff@ciber.com

 



 

Ciber, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

REVENUES

 

 

 

 

 

 

 

 

 

Consulting services

 

$

202,780

 

$

200,211

 

$

620,606

 

$

613,058

 

Other revenue

 

12,277

 

11,005

 

34,387

 

33,002

 

Total revenues

 

215,057

 

211,216

 

654,993

 

646,060

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

Cost of consulting services

 

153,597

 

151,671

 

469,611

 

459,983

 

Cost of other revenue

 

7,398

 

6,125

 

20,056

 

19,817

 

Selling, general and administrative

 

53,531

 

48,966

 

154,021

 

149,737

 

Amortization of intangible assets

 

 

157

 

 

482

 

Restructuring charges

 

14,000

 

 

14,953

 

 

Total operating expenses

 

228,526

 

206,919

 

658,641

 

630,019

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS

 

(13,469

)

4,297

 

(3,648

)

16,041

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

208

 

109

 

700

 

495

 

Interest expense

 

(450

)

(1,096

)

(1,970

)

(5,163

)

Other expense, net

 

(264

)

(614

)

(89

)

(549

)

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

(13,975

)

2,696

 

(5,007

)

10,824

 

Income tax expense (benefit)

 

(462

)

2,501

 

4,122

 

8,921

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) FROM CONTINUING OPERATIONS

 

(13,513

)

195

 

(9,129

)

1,903

 

Loss from discontinued operations, net of income tax

 

(952

)

(9,510

)

(5,489

)

(9,890

)

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET LOSS

 

(14,465

)

(9,315

)

(14,618

)

(7,987

)

Net income attributable to noncontrolling interests

 

4

 

134

 

4

 

400

 

 

 

 

 

 

 

 

 

 

 

NET LOSS ATTRIBUTABLE TO CIBER, INC.

 

$

(14,469

)

$

(9,449

)

$

(14,622

)

$

(8,387

)

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.18

)

$

 

$

(0.12

)

$

0.02

 

Discontinued operations

 

(0.01

)

(0.13

)

(0.08

)

(0.13

)

Basic and diluted loss per share attributable to Ciber, Inc.:

 

$

(0.19

)

$

(0.13

)

$

(0.20

)

$

(0.11

)

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

75,070

 

73,276

 

74,611

 

73,008

 

Diluted

 

75,070

 

73,647

 

74,611

 

73,498

 

 



 

Ciber, Inc.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

September 30,
2013

 

December 31,
2012

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

32,890

 

$

58,849

 

Accounts receivable, net of allowances of $1,567 and $1,752, respectively

 

194,660

 

200,257

 

Prepaid expenses and other current assets

 

23,324

 

24,054

 

Total current assets

 

250,874

 

283,160

 

 

 

 

 

 

 

Property and equipment, net of accumulated depreciation of $50,069 and $47,859, respectively

 

13,048

 

13,683

 

Goodwill

 

278,815

 

276,599

 

Other assets

 

6,679

 

7,029

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

549,416

 

$

580,471

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Liabilities:

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current portion of long-term debt

 

$

3,236

 

$

6,337

 

Accounts payable

 

25,642

 

30,775

 

Accrued compensation and related liabilities

 

56,805

 

68,900

 

Deferred revenue

 

22,232

 

21,872

 

Income taxes payable

 

1,157

 

4,331

 

Other accrued expenses and liabilities

 

44,694

 

45,477

 

Total current liabilities

 

153,766

 

177,692

 

 

 

 

 

 

 

Long-term debt

 

14,385

 

19,790

 

Deferred income taxes

 

24,021

 

21,848

 

Other long-term liabilities

 

10,720

 

2,188

 

Total liabilities

 

202,892

 

221,518

 

 

 

 

 

 

 

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, 75,457 and 74,487 shares issued, respectively

 

755

 

745

 

Treasury stock, at cost, 96 and 708 shares, respectively

 

(324

)

(4,057

)

Additional paid-in capital

 

340,267

 

337,639

 

Retained earnings

 

5,914

 

24,032

 

Accumulated other comprehensive income (loss)

 

(626

)

208

 

Total Ciber, Inc. shareholders’ equity

 

345,986

 

358,567

 

Noncontrolling interests

 

538

 

386

 

Total equity

 

346,524

 

358,953

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

549,416

 

$

580,471

 

 



 

Ciber, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2013

 

2012

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Consolidated net loss

 

$

(14,618

)

$

(7,987

)

Adjustments to reconcile consolidated net loss to net cash used in operating activities:

 

 

 

 

 

Loss from discontinued operations

 

5,489

 

9,890

 

Depreciation

 

4,396

 

5,739

 

Amortization of intangible assets

 

 

482

 

Deferred income tax expense

 

2,429

 

3,699

 

Provision for (recovery on) doubtful receivables

 

680

 

(192

)

Share-based compensation expense

 

8,969

 

4,534

 

Amortization of debt costs

 

656

 

2,385

 

Other, net

 

340

 

630

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(392

)

(30,186

)

Other current and long-term assets

 

(694

)

(3,773

)

Accounts payable

 

(5,105

)

(6,629

)

Accrued compensation and related liabilities

 

(11,436

)

(1,629

)

Other current and long-term liabilities

 

8,527

 

(8,102

)

Income taxes payable/refundable

 

(3,632

)

(1,618

)

Cash used in operating activities — continuing operations

 

(4,391

)

(32,757

)

Cash used in operating activities — discontinued operations

 

(2,865

)

(2,361

)

Cash used in operating activities

 

(7,256

)

(35,118

)

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

Purchases of property and equipment, net

 

(4,079

)

(2,574

)

Cash used in investing activities — continuing operations

 

(4,079

)

(2,574

)

Cash provided by (used in) investing activities — discontinued operations

 

(313

)

30,076

 

Cash provided by (used in) investing activities

 

(4,392

)

27,502

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

Borrowings on long-term debt

 

234,022

 

269,633

 

Payments on long-term debt

 

(242,572

)

(294,698

)

Employee stock purchases and options exercised

 

1,949

 

1,157

 

Credit facility fees paid

 

 

(3,547

)

Payment of initial fair value of acquisition-related contingent consideration

 

(3,428

)

 

Other, net

 

(1,380

)

 

Cash used in financing activities — continuing operations

 

(11,409

)

(27,455

)

Effect of foreign exchange rate changes on cash and cash equivalents

 

(2,902

)

2,532

 

Net decrease in cash and cash equivalents

 

(25,959

)

(32,539

)

Cash and cash equivalents, beginning of period

 

58,849

 

65,567

 

Cash and cash equivalents, end of period

 

$

32,890

 

$

33,028

 

 



 

Ciber, Inc.

SUMMARY SEGMENT DATA

(Dollars in thousands)

(Unaudited)

 

Summary Segment Analysis

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2013

 

2012

 

Change

 

2013

 

2012

 

Change

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$

110,879

 

$

102,227

 

8

%

$

337,489

 

$

321,740

 

5

%

North America

 

104,865

 

109,346

 

(4

)%

318,793

 

325,319

 

(2

)%

Other

 

833

 

802

 

n/m

 

2,575

 

2,309

 

n/m

 

Total segment revenues

 

216,577

 

212,375

 

2

%

658,857

 

649,368

 

1

%

Inter-segment

 

(1,520

)

(1,159

)

n/m

 

(3,864

)

(3,308

)

n/m

 

Total revenues

 

$

215,057

 

$

211,216

 

2

%

$

654,993

 

$

646,060

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$

4,577

 

$

3,890

 

18

%

$

15,528

 

$

16,798

 

(8

)%

North America

 

8,506

 

7,825

 

9

%

25,104

 

22,443

 

12

%

Other

 

44

 

196

 

n/m

 

162

 

326

 

n/m

 

Total segment operating income

 

13,127

 

11,911

 

10

%

40,794

 

39,567

 

3

%

Corporate expenses

 

(12,596

)

(7,517

)

(68

)%

(29,489

)

(22,482

)

(31

)%

Unallocated results of discontinued operations

 

 

60

 

n/m

 

 

(562

)

n/m

 

Earnings before interest, taxes, amortization and restructuring charges

 

531

 

4,454

 

(88

)%

11,305

 

16,523

 

(32

)%

Amortization of intangible assets

 

 

(157

)

100

%

 

(482

)

100

%

Restructuring charges

 

(14,000

)

 

n/m

 

(14,953

)

 

n/m

 

Total operating income (loss) from continuing operations

 

$

(13,469

)

$

4,297

 

(414

)%

$

(3,648

)

$

16,041

 

(123

)%

 


n/m = not meaningful

 

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

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

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Revenues:

 

 

 

 

 

 

 

 

 

International

 

51

%

48

%

51

%

50

%

North America

 

48

%

52

%

49

%

50

%

Other

 

1

%

%

%

%

Total segment revenues

 

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

International

 

35

%

33

%

38

%

43

%

North America

 

65

%

66

%

62

%

57

%

Other

 

%

1

%

%

%

Total segment operating income

 

100

%

100

%

100

%

100

%

 

Segment Operating Margins

(excluding corporate expenses, amortization and restructuring charges)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Operating margin:

 

 

 

 

 

 

 

 

 

International

 

4

%

4

%

5

%

5

%

North America

 

8

%

7

%

8

%

7

%

Other

 

5

%

24

%

6

%

14

%

Total segment operating margin

 

6

%

6

%

6

%

6

%

 



 

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, 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 September 30, 2013

 

 

 

Constant Currency
Revenue Increase

 

Foreign Exchange
Impact

 

GAAP Reported
Revenue Increase

 

Revenues:

 

 

 

 

 

 

 

Consolidated

 

0.3

%

1.5

%

1.8

%

 

 

 

 

 

 

 

 

International

 

5.3

%

3.2

%

8.5

%

 

 

 

Sequential Three Months Ended September 30, 2013

 

 

 

Constant Currency
Revenue Increase

 

Foreign Exchange
Impact

 

GAAP Reported
Revenue Increase

 

Revenues:

 

 

 

 

 

 

 

Consolidated

 

(2.7

)%

0.3

%

(2.4

)%

 

 

 

 

 

 

 

 

International

 

(3.2

)%

0.5

%

(2.7

)%

 

 

 

Nine Months Ended September 30, 2013

 

 

 

Constant Currency
Revenue Increase

 

Foreign Exchange
Impact

 

GAAP Reported
Revenue Increase

 

Revenues:

 

 

 

 

 

 

 

Consolidated

 

0.6

%

0.8

%

1.4

%

 

 

 

 

 

 

 

 

International

 

3.3

%

1.6

%

4.9

%

 

Adjusted Third Quarter Results

 

 

 

Three Months Ended
September 30, 2013

 

 

 

In millions

 

GAAP SG&A expenses

 

$

53.5

 

CFO transition costs

 

(2.6

)

SG&A expenses excluding CFO transition costs

 

$

50.9

 

 



 

 

 

Three Months Ended

 

 

 

September 30, 2013

 

June 30, 2013

 

September 30,
2012

 

 

 

In millions

 

Margin

 

Margin

 

Margin

 

GAAP reported operating loss

 

$

(13.5

)

(6.3

)%

2.3

%

2.0

%

Restructuring charges

 

14.0

 

6.5

%

0.3

%

%

Operating income before restructuring charges

 

$

0.5

 

0.2

%

2.6

%

2.0

%

CFO transition costs

 

$

2.6

 

1.2

%

%

%

Operating income before restructuring charges and CFO transition costs

 

$

3.1

 

1.5

%

2.6

%

2.0

%

 

 

 

Three Months Ended
September 30, 2013

 

Three Months Ended
June 30, 2013

 

Three Months Ended
September 30, 2012

 

 

 

In
millions

 

Per Share

 

In
millions

 

Per
Diluted
Share

 

In
millions

 

Per
Diluted
Share

 

GAAP net income (loss) from continuing operations

 

$

(13.5

)

$

(0.18

)

$

2.9

 

$

0.04

 

$

0.2

 

$

 

Restructuring charges

 

14.0

 

0.19

 

0.6

 

 

 

 

Tax impact of restructuring charges

 

(1.7

)

(0.02

)

(0.1

)

 

 

 

CFO transition costs

 

2.6

 

0.03

 

 

 

 

 

Net income from continuing operations before restructuring charges and CFO transition costs

 

$

1.4

 

$

0.02

 

$

3.4

 

$

0.04

 

$

0.2

 

$