GREENWOOD VILLAGE, Colo.,
Aug. 4, 2016 /PRNewswire/
-- 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
|
|
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
|
Logo - http://photos.prnewswire.com/prnh/20150708/234002LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ciber-reports-second-quarter-2016-results-300309145.html
SOURCE Ciber, Inc.