GREENWOOD VILLAGE, Colo.,
Nov. 8, 2016 /PRNewswire/
-- Ciber, Inc. (NYSE: CBR), a leading global information
technology consulting, services and outsourcing company, today
reported results for the third quarter of 2016.
"Ciber is continuing its efforts to become a more competitive
and profitable enterprise. We are investing in selected areas for
growth, exiting non-strategic businesses, and reducing our cost
structure," said President and Chief Executive Officer Michael Boustridge.
Mr. Boustridge added, "Ciber's Board of Directors has hired
Houlihan Lokey, a global investment
bank, to assist in exploring strategic alternatives for the company
that enhance shareholder value."
"We are pleased to have reached an agreement with Wells Fargo to
waive the previously existing events of default under our current
credit facility and to have established a new credit facility
agreement with Faunus Group International," said Christian Mezger, Chief Financial Officer.
Three Months Ended September 30,
2016
Revenue of $144.3 million fell 24%
in constant currency and 25% in U.S. dollars compared with last
year's third quarter. The North
America segment posted revenue of $97.6 million, down 11% from the year-ago third
quarter and up 3% compared to the second quarter of 2016. Revenue
in the International segment was $46.7
million for the third quarter of 2016, down 42% in constant
currency and 44% in U.S. dollars compared to the year-ago third
quarter. Compared to the second quarter of 2016, International
revenue was down 32% in constant currency and 34% in U.S. dollars.
Overall company gross margin was 20.6%, down from 26.8% in the
prior year, but up from 20.5% in the prior quarter. Excluding
revenues from Norway and
the Netherlands, Ciber revenues
fell 13% in constant currency and 14% in U.S. dollars compared with
last year's third quarter, while revenue in the International
segment fell 18% in constant currency and 20% in U.S.
dollars. Sequentially, excluding revenues from Norway and the
Netherlands, Ciber revenue was down 2% in constant currency
and 3% in U.S. dollars, and International revenue fell 12% in
constant currency and 15% in U.S. dollars.
GAAP operating loss from continuing operations was $20.7 million for the third quarter. Adjusted
operating loss was $15.5 million
before amortization, litigation settlements and restructuring
charges. These adjustments totaled $5.2
million.
GAAP net loss from continuing operations was $18.8 million in the quarter, or $0.23 per share. Adjusted net loss from
continuing operations for the third quarter of 2016, before gain on
sale, amortization, litigation settlements and restructuring
charges was $19.2 million, or
$0.23 per share, compared to adjusted
net income of $0.9 million, or
$0.01 per share, in the third quarter
of 2015. Reconciliations of non-GAAP financial measures to GAAP
operating results and diluted EPS are included at the end of this
release.
Nine Months Ended September 30,
2016
Revenue of $485.3 million fell 17%
in constant currency and 18% in U.S. dollars compared with last
year's nine months ended September 30,
2015. The North America
segment posted revenue of $292.2
million, down 10% from the year-ago nine month period.
Revenue in the International segment was $193.7 million for the first nine months of 2016,
down 26% in constant currency and 28% in U.S. dollars compared to
the year-ago nine month period. Overall company gross margin was
21.5%, down from 26.2% in the prior year first nine months.
Excluding revenues from Norway and
the Netherlands, Ciber revenues
fell 12% in constant currency and 13% in U.S. dollars compared with
the year-ago nine month period, while revenue in the International
segment fell 17% in constant currency and 19% in U.S. dollars.
GAAP operating loss from continuing operations was $169.3 million for the first nine months of 2016.
Adjusted operating loss was $43.6
million before goodwill impairment, bad debt allowance
adjustment, amortization, litigation settlements and restructuring
charges. These adjustments totaled $125.7
million.
GAAP net loss from continuing operations was $167.5 million for the first nine months of 2016,
or $2.07 per share. GAAP results
include a non-cash goodwill impairment charge in the first nine
months of 2016 of $115.5 million.
Adjusted net loss from continuing operations for the first nine
months of 2016, before goodwill impairment, gain on sale, bad debt
allowance adjustment, amortization, litigation settlements and
restructuring charges was $51.4
million, or $0.64 per share,
compared to adjusted net income of $5.9
million, or $0.08 per share in
the first nine months of 2015. Reconciliations of non-GAAP
financial measures to GAAP operating results and diluted EPS are
included at the end of this release.
Ciber recorded a non-cash goodwill impairment charge of
$115.5 million, or $1.43 per diluted share in the first half of
2016, for the write-down of goodwill related to its International
segment. The Company performed its annual impairment test
during the second quarter of 2016. Additionally, the Company
experienced a sustained decrease in the Company's stock price,
lower than expected earnings and the sale of Ciber Nederland B.V.
during the first half of 2016 resulted in a potential indicator of
goodwill impairment. Ciber compared the carrying value of its
segments versus fair value as of March 31,
2016 and 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. Ciber's balance sheet after the 2016 impairment
charge includes no goodwill in its International segment.
Sale of Ciber Norge AS
On August 26, 2016 (the "Closing
Date"), the Company completed a sale of Ciber Norge AS., which has
been reported as part of the Company's International segment, for a
cash purchase price of $7.0 million,
(the "Purchase Price") which includes $0.7
million to be held in escrow (the "Escrow Amount"), to be
released in equal parts at 12 and 18 months from the Closing Date.
The current portion of the Escrow Amount is $0.35 million and is recorded on the Consolidated
Balance Sheets as Restricted cash. The long-term restricted portion
of the Escrow Amount is $0.35 million
and is recorded on the Consolidated Balance Sheets as Other assets.
The Purchase Price was adjusted by $3.4
million for working capital, resulting in proceeds of
$10.4 million. The Purchase Price
also is subject to a purchase price adjustment twelve months after
closing with respect to the retention of certain Ciber Norge
customers, which adjustment is capped at $1.75 million. Until the resolution of
contingencies, the $1.75 million has
been excluded from gain calculations. The gain on the sale of
assets was $5.0 million for the nine
months ended September 30, 2016 and
will be adjusted after resolution of contingencies in the purchase
price, allowing for the potential release of amounts in escrow.
Sale of Consultants in Business, Engineering and Research
Sweden AB
On September 19, 2016, the Company
completed a sale of certain assets and liabilities of Consultants
in Business, Engineering and Research Sweden AB, ("Ciber Sweden"),
which has been reported as a part of the Company's International
segment, for a cash purchase price of $1.0
million (the "Purchase Price"). The Purchase Price was
subject to a purchase price adjustment on or prior to the closing
with respect to the retention of certain Ciber Sweden consultants,
which adjustment is capped at 15% of the Purchase Price.
Subsequent to quarter end, the Purchase Price was adjusted downward
by $0.1 million, resulting in
proceeds of $0.9 million. The gain on
the sale of assets was $0.9 million
for the nine months ended September 30,
2016 and will be adjusted after resolution of contingencies
in the purchase price.
Capital Deployment and Liquidity
Ciber's cash balance at the end of the third quarter of 2016 was
$6.4 million. The outstanding balance
on the credit facility was $39.7
million. At the end of the second quarter of 2016, Ciber's
cash balance was $11.3 million and
the outstanding balance on the credit facility was $40.7 million.
Ciber filed an 8-K on November 2,
2016 regarding a revised agreement with Wells Fargo on the
company's existing credit facility and a new agreement to establish
a credit facility for international operations with Faunus Group
International.
Cash flow used in operating activities (continuing operations)
in the third quarter was $17.3
million and year-to-date through September 30, 2016 was $52.8 million, compared with cash provided by
continuing operations of $5.2 million
in the year-ago quarter and cash usage of $31.9 million in the first nine months of 2015.
Days Sales Outstanding were 77 days, an increase of 10 days versus
the prior year quarter and an increase of 6 days versus the second
quarter of 2016. Capital expenditures totaled $9.1 million for year-to-date 2016 compared to
$6.3 million in the year-earlier
period. In the third quarter capital expenditures were $0.8, down from $2.7
million in the year-ago quarter.
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: 13647488.
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
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
REVENUES
|
|
|
|
|
|
|
|
Consulting
services
|
$
|
137,364
|
|
|
$
|
180,490
|
|
|
$
|
459,822
|
|
|
$
|
558,790
|
|
Other
revenue
|
6,982
|
|
|
12,111
|
|
|
25,487
|
|
|
33,760
|
|
Total
revenues
|
144,346
|
|
|
192,601
|
|
|
485,309
|
|
|
592,550
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Cost of consulting
services
|
110,313
|
|
|
133,705
|
|
|
366,193
|
|
|
418,121
|
|
Cost of other
revenue
|
4,323
|
|
|
7,273
|
|
|
14,640
|
|
|
19,386
|
|
Selling, general and
administrative
|
45,165
|
|
|
48,978
|
|
|
150,296
|
|
|
142,726
|
|
Goodwill
Impairment
|
—
|
|
|
—
|
|
|
115,483
|
|
|
—
|
|
Amortization of
intangible assets
|
323
|
|
|
55
|
|
|
2,349
|
|
|
162
|
|
Litigation
settlements
|
4,496
|
|
|
—
|
|
|
4,496
|
|
|
—
|
|
Restructuring
charges
|
417
|
|
|
1,002
|
|
|
1,156
|
|
|
1,738
|
|
Total operating
expenses
|
165,037
|
|
|
191,013
|
|
|
654,613
|
|
|
582,133
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
(LOSS) FROM CONTINUING OPERATIONS
|
(20,691)
|
|
|
1,588
|
|
|
(169,304)
|
|
|
10,417
|
|
|
|
|
|
|
|
|
|
Gain on sale of
assets/entity
|
5,595
|
|
|
—
|
|
|
12,525
|
|
|
—
|
|
Interest
expense
|
(545)
|
|
|
(377)
|
|
|
(1,792)
|
|
|
(1,118)
|
|
Other expense,
net
|
(528)
|
|
|
(5)
|
|
|
(1,297)
|
|
|
(383)
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES
|
(16,169)
|
|
|
1,206
|
|
|
(159,868)
|
|
|
8,916
|
|
Income tax
expense
|
2,629
|
|
|
1,338
|
|
|
7,616
|
|
|
3,679
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
CONTINUING OPERATIONS
|
(18,798)
|
|
|
(132)
|
|
|
(167,484)
|
|
|
5,237
|
|
Gain (loss) from
discontinued operations, net of income tax
|
14
|
|
|
(200)
|
|
|
362
|
|
|
(258)
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
(18,784)
|
|
|
(332)
|
|
|
(167,122)
|
|
|
4,979
|
|
Net income (loss)
attributable to noncontrolling interests
|
49
|
|
|
24
|
|
|
84
|
|
|
16
|
|
|
|
|
|
|
|
|
|
NET EARNINGS (LOSS)
ATTRIBUTABLE TO CIBER, INC.
|
$
|
(18,833)
|
|
|
$
|
(356)
|
|
|
$
|
(167,206)
|
|
|
$
|
4,963
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings (loss) per share attributable to Ciber, Inc.:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
(0.23)
|
|
|
$
|
—
|
|
|
$
|
(2.07)
|
|
|
$
|
0.07
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
Basic and diluted
earnings (loss) per share attributable to Ciber, Inc.
|
$
|
(0.23)
|
|
|
$
|
—
|
|
|
$
|
(2.07)
|
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
81,178
|
|
|
79,206
|
|
|
80,776
|
|
|
78,938
|
|
Diluted
|
81,178
|
|
|
79,206
|
|
|
80,776
|
|
|
79,725
|
|
Ciber,
Inc.
|
CONSOLIDATED BALANCE
SHEETS
|
(In thousands, except
per share amounts)
|
(Unaudited)
|
|
|
September
30,
2016
|
|
December
31,
2015
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
6,434
|
|
|
$
|
20,404
|
|
Restricted
cash
|
2,850
|
|
|
—
|
|
Accounts receivable,
net of allowances of $3,845 and $2,130, respectively
|
138,564
|
|
|
169,501
|
|
Other
receivable-related party
|
452
|
|
|
—
|
|
Prepaid expenses and
other current assets
|
23,979
|
|
|
26,340
|
|
Total current
assets
|
172,279
|
|
|
216,245
|
|
|
|
|
|
Property and
equipment, net of accumulated depreciation of $33,609 and $37,849,
respectively
|
19,533
|
|
|
22,447
|
|
Goodwill
|
133,681
|
|
|
256,736
|
|
Intangibles,
net
|
3,751
|
|
|
1,544
|
|
Other
assets
|
5,083
|
|
|
5,299
|
|
|
|
|
|
TOTAL
ASSETS
|
$
|
334,327
|
|
|
$
|
502,271
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Liabilities:
|
|
|
|
Current
liabilities:
|
|
|
|
Current portion of
long-term debt
|
$
|
39,369
|
|
|
$
|
—
|
|
Accounts
payable
|
22,740
|
|
|
34,980
|
|
Accrued compensation
and related liabilities
|
24,607
|
|
|
31,152
|
|
Deferred
revenue
|
8,340
|
|
|
14,238
|
|
Income taxes
payable
|
437
|
|
|
575
|
|
Other accrued
expenses and liabilities
|
28,586
|
|
|
29,384
|
|
Total current
liabilities
|
124,079
|
|
|
110,329
|
|
|
|
|
|
Long-term
debt
|
—
|
|
|
32,680
|
|
Deferred income
taxes
|
33,428
|
|
|
30,571
|
|
Other long-term
liabilities
|
14,420
|
|
|
8,794
|
|
Total
liabilities
|
171,927
|
|
|
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, 81,347 and 80,057 shares
issued, respectively
|
813
|
|
|
801
|
|
Treasury stock, at
cost, 29 and 32 shares, respectively
|
(33)
|
|
|
(113)
|
|
Additional paid-in
capital
|
375,084
|
|
|
369,228
|
|
Accumulated
deficit
|
(185,976)
|
|
|
(17,903)
|
|
Accumulated other
comprehensive loss
|
(28,158)
|
|
|
(32,702)
|
|
Total
Ciber, Inc. shareholders' equity
|
161,730
|
|
|
319,311
|
|
Noncontrolling
interests
|
670
|
|
|
586
|
|
Total
equity
|
162,400
|
|
|
319,897
|
|
|
|
|
|
TOTAL LIABILITIES AND
EQUITY
|
$
|
334,327
|
|
|
$
|
502,271
|
|
Ciber,
Inc.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Consolidated net
income (loss)
|
$
|
(167,122)
|
|
|
$
|
4,979
|
|
Adjustments to
reconcile consolidated net income (loss) to net cash used in
operating activities:
|
|
|
|
(Gain) loss from
discontinued operations
|
(362)
|
|
|
258
|
|
Goodwill
impairment
|
115,483
|
|
|
—
|
|
Gain on sale of
assets/entity
|
(12,525)
|
|
|
—
|
|
Depreciation
|
4,388
|
|
|
4,115
|
|
Amortization of
intangible assets
|
2,349
|
|
|
162
|
|
Deferred income tax
expense
|
3,170
|
|
|
2,858
|
|
Provision for
doubtful receivables
|
2,079
|
|
|
343
|
|
Share-based
compensation expense
|
5,353
|
|
|
5,850
|
|
Amortization of debt
costs
|
570
|
|
|
570
|
|
Other, net
|
163
|
|
|
912
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
19,270
|
|
|
(4,770)
|
|
Other current and
long-term assets
|
(1,251)
|
|
|
(3,834)
|
|
Accounts
payable
|
(10,602)
|
|
|
(5,935)
|
|
Accrued compensation
and related liabilities
|
(9,193)
|
|
|
(24,128)
|
|
Other current and
long-term liabilities
|
(3,240)
|
|
|
(16,006)
|
|
Income taxes
payable/refundable
|
(1,284)
|
|
|
2,735
|
|
Cash used in
operating activities — continuing operations
|
(52,754)
|
|
|
(31,891)
|
|
Cash used in
operating activities — discontinued operations
|
(161)
|
|
|
(512)
|
|
Cash used in
operating activities
|
(52,915)
|
|
|
(32,403)
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Proceeds from sale of
assets/entity
|
33,614
|
|
|
—
|
|
Proceeds from sale of
assets/entity-restricted cash
|
5,700
|
|
|
—
|
|
Purchases of property
and equipment, net
|
(9,053)
|
|
|
(6,288)
|
|
Cash provided by
(used in) investing activities — continuing operations
|
30,261
|
|
|
(6,288)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Borrowings on
debt
|
216,380
|
|
|
263,138
|
|
Payments on
debt
|
(209,917)
|
|
|
(244,476)
|
|
Employee stock
purchases and options exercised
|
515
|
|
|
1,172
|
|
Purchase of shares
for employee tax withholdings
|
(786)
|
|
|
(1,194)
|
|
Purchase of
noncontrolling interest
|
—
|
|
|
(4,991)
|
|
Purchase of treasury
stock
|
—
|
|
|
(1,665)
|
|
Cash provided by
financing activities — continuing operations
|
6,192
|
|
|
11,984
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
2,492
|
|
|
(998)
|
|
Net decrease in cash
and cash equivalents
|
(13,970)
|
|
|
(27,705)
|
|
Cash and cash
equivalents, beginning of period
|
20,404
|
|
|
45,858
|
|
Cash and cash
equivalents, end of period
|
$
|
6,434
|
|
|
$
|
18,153
|
|
Ciber,
Inc.
|
SUMMARY SEGMENT
DATA
|
(Dollars in
thousands)
|
(Unaudited)
|
|
Summary Segment
Analysis
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
46,722
|
|
|
$
|
82,837
|
|
|
(44)
|
%
|
|
$
|
193,719
|
|
|
$
|
268,819
|
|
|
(28)
|
%
|
North
America
|
97,569
|
|
|
110,031
|
|
|
(11)
|
%
|
|
292,249
|
|
|
324,423
|
|
|
(10)
|
%
|
Other
|
812
|
|
|
838
|
|
|
(3)
|
%
|
|
2,365
|
|
|
2,459
|
|
|
(4)
|
%
|
Total segment
revenues
|
145,103
|
|
|
193,706
|
|
|
(25)
|
%
|
|
488,333
|
|
|
595,701
|
|
|
(18)
|
%
|
Inter-segment
|
(757)
|
|
|
(1,105)
|
|
|
(31)
|
%
|
|
(3,024)
|
|
|
(3,151)
|
|
|
(4)
|
%
|
Total
revenues
|
$
|
144,346
|
|
|
$
|
192,601
|
|
|
(25)
|
%
|
|
$
|
485,309
|
|
|
$
|
592,550
|
|
|
(18)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
International
|
$
|
(8,249)
|
|
|
$
|
4,556
|
|
|
n/m
|
|
|
$
|
(18,358)
|
|
|
$
|
16,194
|
|
|
n/m
|
|
North
America
|
5,186
|
|
|
10,266
|
|
|
(50)
|
%
|
|
12,625
|
|
|
30,649
|
|
|
(59)
|
%
|
Other
|
29
|
|
|
48
|
|
|
(40)
|
%
|
|
203
|
|
|
173
|
|
|
17
|
%
|
Total segment
operating income
|
(3,034)
|
|
|
14,870
|
|
|
n/m
|
|
|
(5,530)
|
|
|
47,016
|
|
|
n/m
|
|
Corporate
expenses
|
(12,421)
|
|
|
(12,225)
|
|
|
1
|
%
|
|
(40,290)
|
|
|
(34,699)
|
|
|
16
|
%
|
Operating income from
continuing operations before goodwill impairment, amortization,
litigation settlements and restructuring charges
|
(15,455)
|
|
|
2,645
|
|
|
n/m
|
|
|
(45,820)
|
|
|
12,317
|
|
|
n/m
|
|
Goodwill
impairment
|
—
|
|
|
—
|
|
|
—
|
%
|
|
(115,483)
|
|
|
—
|
|
|
(100)
|
%
|
Amortization of
intangible assets
|
(323)
|
|
|
(55)
|
|
|
n/m
|
|
|
(2,349)
|
|
|
(162)
|
|
|
n/m
|
|
Litigation
settlements
|
(4,496)
|
|
|
—
|
|
|
100
|
%
|
|
(4,496)
|
|
|
—
|
|
|
100
|
%
|
Restructuring
charges
|
(417)
|
|
|
(1,002)
|
|
|
(59)
|
%
|
|
(1,156)
|
|
|
(1,738)
|
|
|
(33)
|
%
|
Total operating
income (loss) from continuing operations
|
$
|
(20,691)
|
|
|
$
|
1,588
|
|
|
n/m
|
|
|
$
|
(169,304)
|
|
|
$
|
10,417
|
|
|
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
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues:
|
|
|
|
|
|
|
|
International
|
32
|
%
|
|
43
|
%
|
|
40
|
%
|
|
46
|
%
|
North
America
|
67
|
%
|
|
56
|
%
|
|
60
|
%
|
|
54
|
%
|
Other
|
1
|
%
|
|
1
|
%
|
|
—
|
%
|
|
—
|
%
|
Total segment
revenues
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
International
|
272
|
%
|
|
32
|
%
|
|
332
|
%
|
|
35
|
%
|
North
America
|
(171)
|
%
|
|
68
|
%
|
|
(228)
|
%
|
|
65
|
%
|
Other
|
(1)
|
%
|
|
—
|
%
|
|
(4)
|
%
|
|
—
|
%
|
Total segment
operating income (loss)
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
Segment Operating
Margins
|
(excluding
corporate expenses, amortization and restructuring
charges)
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
margin:
|
|
|
|
|
|
|
|
International
|
(18)
|
%
|
|
5
|
%
|
|
(9)
|
%
|
|
6
|
%
|
North
America
|
5
|
%
|
|
9
|
%
|
|
4
|
%
|
|
9
|
%
|
Other
|
4
|
%
|
|
6
|
%
|
|
9
|
%
|
|
7
|
%
|
Total segment
operating margin
|
(2)
|
%
|
|
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
September 30, 2016 Comparison to
Three Months Ended
September 30, 2015
|
|
|
Constant
Currency
Revenue
Decrease
|
|
Foreign
Exchange
Impact
|
|
GAAP
Reported
Revenue
Decrease
|
Revenues:
|
|
|
|
|
|
|
Consolidated
|
|
(24.2)
|
%
|
|
(0.9)
|
%
|
|
(25.1)
|
%
|
|
|
|
|
|
|
|
International
|
|
(41.6)
|
%
|
|
(2.0)
|
%
|
|
(43.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2016 Sequential
Comparison to Three
Months Ended June 30, 2016
|
|
|
Constant
Currency
Revenue
Decrease
|
|
Foreign
Exchange
Impact
|
|
GAAP
Reported
Revenue
Decrease
|
Revenues:
|
|
|
|
|
|
|
Consolidated
|
|
(12.0)
|
%
|
|
(1.0)
|
%
|
|
(13.0)
|
%
|
|
|
|
|
|
|
|
International
|
|
(32.0)
|
%
|
|
(2.2)
|
%
|
|
(34.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2016 Comparison to Nine
Months Ended
September 30, 2015
|
|
|
Constant
Currency
Revenue
Increase
(Decrease)
|
|
Foreign
Exchange
Impact
|
|
GAAP
Reported
Revenue
Decrease
|
Revenues:
|
|
|
|
|
|
|
Consolidated
|
|
(17.0)
|
%
|
|
(1.1)
|
%
|
|
(18.1)
|
%
|
|
|
|
|
|
|
|
International
|
|
(25.5)
|
%
|
|
(2.4)
|
%
|
|
(27.9)
|
%
|
Adjusted Results
of Operations
|
|
Three Months Ended
September 30, 2016
|
|
|
Consolidated*
|
|
Three Months
Ended
September 30,
2016
|
|
Three Months
Ended
September 30,
2015
|
|
Three Months
Ended
June 30,
2016
|
|
In
millions
|
|
Margin
|
|
In
millions
|
|
Margin
|
|
In
millions
|
|
Margin
|
GAAP reported
operating income (loss) from continuing operations
|
$
|
(20.7)
|
|
|
(14.3)
|
%
|
|
$
|
1.6
|
|
|
0.8
|
%
|
|
$
|
(53.3)
|
|
|
(32.1)
|
%
|
Goodwill
impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.6
|
|
|
17.8
|
|
Bad debt allowance
adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
|
1.3
|
|
Restructuring
charges
|
0.4
|
|
|
0.3
|
|
|
1.0
|
|
|
0.5
|
|
|
0.4
|
|
|
0.2
|
|
Litigation
settlements
|
4.5
|
|
|
3.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Amortization of
intangible assets
|
0.3
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
|
|
1.4
|
|
|
0.9
|
|
Operating income
(loss) from continuing operations before goodwill impairment, bad
debt allowance adjustment, restructuring charges, litigation
settlements and amortization
|
$
|
(15.5)
|
|
|
(10.7)
|
%
|
|
$
|
2.6
|
|
|
1.4
|
%
|
|
$
|
(19.7)
|
|
|
(11.8)
|
%
|
|
|
*Columns may not
total due to rounding
|
|
Consolidated*
|
|
Three Months
Ended
September 30,
2016
|
|
Three Months
Ended
September 30,
2015
|
|
Three Months
Ended
June 30,
2016
|
|
In
millions
|
|
Per
Share
|
|
In
millions
|
|
Per Share
|
|
In
millions
|
|
Per Share
|
GAAP net income
(loss) from continuing operations
|
$
|
(18.8)
|
|
|
$
|
(0.23)
|
|
|
$
|
(0.1)
|
|
|
$
|
—
|
|
|
$
|
(51.7)
|
|
|
$
|
(0.64)
|
|
Goodwill
impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.6
|
|
|
0.37
|
|
Restructuring
charges
|
0.4
|
|
|
0.01
|
|
|
1.0
|
|
|
0.01
|
|
|
0.4
|
|
|
—
|
|
Bad debt allowance
adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
|
0.03
|
|
Gain on
sale
|
(5.6)
|
|
|
(0.07)
|
|
|
—
|
|
|
—
|
|
|
(6.9)
|
|
|
(0.09)
|
|
Tax impact of
sale
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.0
|
|
|
0.04
|
|
Tax impact of
restructuring charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Amortization of
intangibles
|
0.3
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
1.4
|
|
|
0.02
|
|
Litigation
settlements
|
4.5
|
|
|
0.06
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income (loss)
from continuing operations before goodwill impairment, bad debt
allowance adjustment, gain on sale, restructuring charges,
litigation settlements and amortization
|
$
|
(19.2)
|
|
|
$
|
(0.23)
|
|
|
$
|
0.9
|
|
|
$
|
0.01
|
|
|
$
|
(22.0)
|
|
|
$
|
(0.27)
|
|
|
|
*Columns may not
total due to rounding
|
Nine Months Ended
September 30, 2016
|
|
|
Consolidated*
|
|
Nine Months
Ended
September 30,
2016
|
|
Nine Months
Ended
September 30,
2015
|
|
In
millions
|
|
Margin
|
|
In
millions
|
|
Margin
|
GAAP reported
operating income (loss) from continuing operations
|
$
|
(169.3)
|
|
|
(34.9)
|
%
|
|
$
|
10.4
|
|
|
1.8
|
%
|
Goodwill
impairment
|
115.5
|
|
|
23.8
|
|
|
—
|
|
|
—
|
|
Bad debt allowance
adjustment
|
2.2
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
Restructuring
charges
|
1.2
|
|
|
0.2
|
|
|
1.8
|
|
|
0.3
|
|
Litigation
settlements
|
4.5
|
|
|
0.9
|
|
|
|
|
|
Amortization of
intangible assets
|
2.3
|
|
|
0.5
|
|
|
0.2
|
|
|
—
|
|
Operating income
(loss) from continuing operations before goodwill impairment, bad
debt allowance adjustment, restructuring charges, litigation
settlements and amortization
|
$
|
(43.6)
|
|
|
(9.0)
|
%
|
|
$
|
12.4
|
|
|
2.1
|
%
|
|
*Columns may
not total due to rounding
|
|
Consolidated*
|
|
Nine Months
Ended
September 30,
2016
|
|
Nine Months
Ended
September 30,
2015
|
|
In
millions
|
|
Per
Share
|
|
In
millions
|
|
Per Share
|
GAAP net income
(loss) from continuing operations
|
$
|
(167.5)
|
|
|
$
|
(2.07)
|
|
|
$
|
5.2
|
|
|
$
|
0.07
|
|
Goodwill
impairment
|
115.5
|
|
|
1.43
|
|
|
—
|
|
|
—
|
|
Restructuring
charges
|
1.2
|
|
|
0.01
|
|
|
0.8
|
|
|
0.01
|
|
Bad debt allowance
adjustment
|
2.2
|
|
|
0.03
|
|
|
—
|
|
|
—
|
|
Gain on
sale
|
(12.5)
|
|
|
(0.15)
|
|
|
—
|
|
|
—
|
|
Tax impact of
sale
|
2.9
|
|
|
0.04
|
|
|
—
|
|
|
—
|
|
Tax impact of
restructuring charges
|
—
|
|
|
—
|
|
|
(0.2)
|
|
|
—
|
|
Litigation
settlements
|
4.5
|
|
|
0.06
|
|
|
—
|
|
|
—
|
|
Amortization of
intangibles
|
2.3
|
|
|
0.03
|
|
|
0.1
|
|
|
—
|
|
Net income (loss)
from continuing operations before goodwill impairment, gain on
sale, bad debt allowance adjustment, restructuring charges,
litigation settlements and amortization
|
$
|
(51.4)
|
|
|
$
|
(0.64)
|
|
|
$
|
5.9
|
|
|
$
|
0.08
|
|
|
*Columns may
not total due to rounding
|
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SOURCE Ciber, Inc.