GREENWOOD VILLAGE, Colo., Oct. 27 /PRNewswire-FirstCall/ -- Today
CIBER, Inc. (NYSE:CBR), a leading international IT outsourcing and
software services consultancy, reported its financial results for
the third quarter of 2009. We will hold a conference call on
October 27, 2009 at 11:00 a.m. EST to discuss this information; the
conference call and webcast information can be found later in this
release. Management Comments: CIBER posted positive cash flow for
the 63rd consecutive quarter, continuing its 100% track record of
generating quarterly positive cash flow as a public company.
Additionally, CIBER's new $155 million credit facility gives the
company ample liquidity to support growth with reasonable covenants
that allow for operational flexibility. CIBER's diversified global
operations in 18 countries on 4 continents have served as a
strategic bulwark in mitigating the global economic recession. With
an average of 20 years of industry experience, the Company's
seasoned management team continues to effectively provide the
leadership required during this challenging economic environment.
Well versed in difficult decision making, the company has weathered
the economic storm by lowering SG&A costs until recovery signs
are evident, while at the same time taking advantage of
opportunities to add quality employees that become available during
these periods. "Our third quarter results continued to reflect the
global economic malaise. However, beginning in September we have
seen more customer activity, stable headcounts and new contracts,
particularly in the U.S. Federal Government Division and our
international operations," said Mac Slingerlend, CIBER's President
and Chief Executive Officer. "Cash collections were strong in 3Q09
and our new 3-year bank facility is a solid underpinning to our
financial resources. Although we were frustrated to settle a
non-substantiated legal action in late September, we assured
ourselves of no greater negative consequences. We are now focused
on sequential quarterly improvements in overall business levels."
Sequential Quarterly Results: 3Q09 as Compared to 2Q09 -- Revenue
of $256.4 million for 3Q09 compares to $260.6 million for 2Q09.
This 1.6% sequential decrease primarily reflects seasonal holidays
and vacations. -- Operating income (net of $2.5 million of one-time
charges; discussed below) of $7.0 million for 3Q09 compares to $7.5
million for 2Q09. Prior to the one-time charges, operating income
actually increased by approximately $2.0 million, or 27%, from the
second quarter to the third quarter. -- 3Q09 GAAP EPS of $0.05 per
share, net of $0.03 per share of non recurring charges, compares to
$0.07 per share for 2Q09. Before the charges, the $0.01 per share
sequential improvement reflects the cost savings undertaken by the
Company and improved results in the U.S. ERP and European
Divisions. -- EBITDA for 3Q09 of $12.3 million, or $14.8 million
prior to the non recurring charges, compares to $13.0 million for
2Q09. Non Recurring 3Q09 Charges -- The Company was compelled to
settle a lawsuit in the quarter that had previously been considered
not meaningful. The 2 1/2 year old suit from a 5 year ago matter
was expected to be dismissed against the Company. The Company's
request to be released from all charges only achieved a partial
dismissal. In mid-September, the trial commenced. Given the sizable
sums sought by the Plaintiffs and joint liability of the multiple
defendants, the Company concluded it was appropriate to avoid any
further inclusion in this matter. The Company paid $2-2.25 million
in total settlement and legal fees to be dismissed, admitting no
fault. -- In securing a new, improved three-year credit facility,
the Company accelerated unamortized fees and costs of the prior
facility by approximately $0.3 million. On a combined basis these
two non recurring charges adversely impacted Q309 by approximately
$0.03 per share. 3Q09 Operational Highlights Custom Solutions
Division (Including Indian Operations) -- Efforts to pursue larger
wins by combining teams from branch offices and Strategic Practices
are now a more organized focus. -- Most new IT spending has been
business intelligence and maintenance oriented, with new
development generally on hold at corporate clients. That said, a
few clients have commented that they are just now commencing new
development. -- Indian operations continue to build headcount and
utilization. IT Outsourcing Division -- Vibrancy in our longer-term
contracts IT Outsourcing Division continued in the quarter, with
the signing of a new $48.0 million, 6-year contract, in addition to
several smaller wins. The large contract covers full IT operations
and service desk solutions for a major quasi-governmental financial
institution. This Division also shared in wins in Europe during the
quarter and early in the fourth quarter. U.S. ERP Division -- The
Oracle ERP Practice remains stable, with public sector clients more
active now than higher education work. -- The U.S. SAP Practice had
smaller wins in the quarter, but has a sizeable, diversified
pipeline and it is kicking-off joint lead activities with specific
verticals with its SAP partnership. -- Our Lawson Practice remains
positive in their healthcare and public sector verticals pipeline.
Federal Government Division -- After a slow contract start to the
third quarter, this Division finished the quarter with a flurry,
which continued into October. -- Renewals, recompetes and
extensions support this revenue base while incremental prime
contractor wins are being sought. European Division -- The
July-August summer holiday combination was a greater challenge in
2009, as utilization levels were already under greater pressure.
However, beginning September, utilization improved meaningfully. --
Wins in Norway, Germany and the UK led the quarterly activity, with
European IT Outsourcing wins commencing in September and the
current quarter. Eastern Asia & Pacific Operations --
Australia/New Zealand operations remained profitable while material
projects continued to be pipeline-oriented. -- China operations saw
greater offshore support activity for European and U.S. customers
as it builds its domestic base. Balance Sheet Highlights (September
30, 2009) -- In August, the Company completed its refinancing of an
intermediate term credit support with a new three-year, $155
million facility led by Bank of America, a new lender to our lender
group. The syndicated bank group included all of the former
participants, except the agent, plus an additional bank. The new
facility extended the maturity and is more flexible in its covenant
structure. -- Cash was $56.2 million and long-term debt was $92.9
million. -- DSOs for services were 65 days, a one day sequential
improvement. Bookings Data Bookings for the third quarter were $265
million, representing a 1.1:1 book-to-bill ratio. Outlook The
Company currently believes that the fourth quarter will be
sequentially better than the September quarter, and now anticipates
2009 fiscal revenue of $1.0351.040 billion and, net of the current
quarter's $0.03/share nonrecurring charges, fiscal GAAP EPS of
$0.25-0.26/share. Conference Call and Webcast A webcast to discuss
the Company's financial results and outlook will be held at 11:00
a.m. EST on Tuesday, October 27, 2009 and may be heard live by
visiting the Investor Relations portion of the Company website at
http://www.ciber.com/cbr/. To participate in the call, dial
877-941-0843 within the United States, and 480629-9644
internationally, using the conference ID number 4170518. A replay
of the conference call will be available for 30 days by dialing
800-406-7325 within the United States, and 303-590-3030
internationally, using the ID number 4170518. The replay will also
be available on CIBER's website. About CIBER, Inc. CIBER, Inc.
(NYSE:CBR) is a pure-play international IT outsourcing and software
implementation and integration consultancy with superior
value-priced services and reliable delivery for both private and
government sector clients. CIBER's services are offered globally on
a project- or strategic-staffing basis, in both custom and
enterprise resource planning (ERP) package environments, and across
all technology platforms, operating systems and infrastructures.
Founded in 1974 and headquartered in Greenwood Village, Colo.,
CIBER now serves client businesses from over 40 U.S. offices, 25
European offices and seven offices in Asia/Pacific. Operating in 18
countries, with more than 8,500 employees and annual revenue of
$1.1 billion, CIBER and its IT specialists continuously build and
upgrade clients' systems to "competitive advantage status." CIBER
is included in the Russell 2000 Index and the S&P Small Cap 600
Index. CIBER, the Reliable Global IT Services Partner.
http://www.ciber.com/. Forward-Looking and Cautionary Statements
Statements contained in this release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements involve
a number of risks, uncertainties and other factors that could cause
actual results to differ materially, as discussed in the Company's
filings with the Securities and Exchange Commission. CIBER
undertakes neither intention nor obligation to publicly update or
revise any forward-looking statements. CIBER and the CIBER logo are
trademarks or registered trademarks of CIBER, Inc. Copyright© 2009.
CIBER, Inc. and Subsidiaries Condensed Consolidated Statements of
Operations (Unaudited) In thousands, except Three Months Ended Nine
Months Ended per share data Sept. 30, Sept. 30, 2008 2009 2008 2009
---- ---- ---- ---- Consulting services $286,004 $245,113 $867,484
$743,170 Other revenue 13,962 11,254 44,525 32,276 ------ ------
------ ------ Total revenue 299,966 256,367 912,009 775,446 -------
------- ------- ------- Cost of consulting services 209,515 184,028
632,811 559,121 Cost of other revenue 8,170 7,382 28,850 20,557
Selling, general and administrative expenses 67,464 56,417 200,000
169,879 Amortization of intangible assets 1,604 1,506 4,823 4,371
----- ----- ----- ----- Operating income 13,213 7,034 45,525 21,518
Other expense, net 2,778 2,074 11,510 2,930 ----- ----- ------
----- Income before income taxes 10,435 4,960 34,015 18,588 Income
tax expense 3,003 1,401 11,844 6,023 ----- ----- ------ -----
Consolidated net income 7,432 3,559 22,171 12,565 Net income
noncontrolling interests 197 54 824 139 --- -- --- --- Net income
attributable to CIBER, Inc. $7,235 $3,505 $21,347 $12,426 ======
====== ======= ======= Earnings per share - diluted $0.12 $0.05
$0.35 $0.18 ===== ===== ===== ===== Weighted average shares -
diluted 60,791 69,809 60,485 67,573 ====== ====== ====== ====== For
the three months ended September 30, 2008 and 2009, respectively,
earnings per share - basic were $0.12 and $0.05 and weighted
average shares - basic were 60,032 and 69,664. For the nine months
ended September 30, 2008 and 2009, respectively, earnings per share
- basic were $0.36 and $0.18 and weighted average shares - basic
were 60,098 and 67,484. CIBER, Inc. and Subsidiaries Condensed
Consolidated Balance Sheets (Unaudited) In thousands December
September 31, 30, 2008 2009 ---- ---- Assets ------ Current assets:
Cash and cash equivalents $48,849 $56,247 Accounts receivable, net
235,066 216,658 Prepaid expenses and other current assets 20,633
24,177 Deferred income taxes 4,883 7,189 ----- ----- Total current
assets 309,431 304,271 Property and equipment, net 27,372 26,710
Intangible assets, net 449,813 457,965 Other assets 10,904 13,011
------ ------ Total assets $797,520 $801,957 ======== ========
Liabilities and Shareholders' Equity
------------------------------------ Current liabilities: Accounts
payable $35,373 $27,301 Accrued compensation and related
liabilities 62,437 66,275 Other accrued expenses and liabilities
44,514 63,656 Income taxes payable 1,874 11,299 ----- ------ Total
current liabilities 144,198 168,531 Long-term bank debt 165,710
92,865 Deferred income taxes 34,288 36,400 ------ ------ Total
liabilities 344,196 297,796 Total shareholders' equity 453,324
504,161 ------- ------- Total liabilities and shareholders' equity
$797,520 $801,957 ======== ======== CIBER, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited) Nine
Months Ended September 30, ------------- In thousands 2008 2009
---- ---- Operating activities: Net income $22,171 $12,565
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation 9,513 9,007 Amortization of
intangible assets 4,823 4,371 Other, net 27,492 35,399 ------
------ Net cash provided by operating activities 63,999 61,342
------ ------ Investing activities: Acquisitions, net of cash
acquired (7,790) (4,258) Purchases of property and equipment, net
(10,837) (7,960) Other 233 - --- --- Net cash used in investing
activities (18,394) (12,218) ------- ------- Financing activities:
Employee stock purchases and options exercised 3,559 1,871
Purchases of treasury stock (7,519) (3,877) Borrowings (payments)
on long-term bank debt, net 42,155 (63,882) Retirement of
debentures (68,779) - Sales of common stock - 23,220 Other, net
(5,558) (3,687) ------ ------ Net cash used in financing activities
(36,142) (46,355) ------- ------- Effect of foreign exchange rate
changes on cash (1,839) 4,629 ------ ----- Net increase in cash and
cash equivalents 7,624 7,398 Cash and cash equivalents, beginning
of period 31,717 48,849 ------ ------ Cash and cash equivalents,
end of period $39,341 $56,247 ======= ======= Selected Financial
Information Unaudited Reconciliation of Non-GAAP and Segment
Financial Measures I. Reconciliation of Revenue Growth Components
($ in millions) Sequential Three Months Ended
---------------------------------------------------------- June 30,
Foreign Sept. 30, Divisions 2009 Organic Acquired Exchange Total
2009 --------- ---- ------- -------- -------- ----- ---- Custom
Sols & ITO $113.1 -5.8% -% -% -5.8% $106.5 U.S. ERP 32.3 -3.1 -
- -3.1 31.3 Federal 29.9 -2.7 - - -2.7 29.1 Europe 85.3 -1.3 - 6.2
4.9 89.5 ---- ---- --- --- --- ---- $260.6 -3.6% -% 2.0% -1.6%
$256.4 ====== ==== === === ==== ====== Three Months Ended
--------------------------------------------------------- Sept. 30,
Foreign Sept. 30, Divisions 2008 Organic Acquired Exchange Total
2009 --------- ---- ------- -------- -------- ----- ---- Custom
Sols & ITO $133.2 -21.0% 1.0% -% -20.0% $106.5 U.S. ERP 30.1
4.0 - - 4.0 31.3 Federal 31.4 -7.3 - - -7.3 29.1 Europe 105.3 -7.3
- -7.7 -15.0 89.5 ----- ---- --- ---- ----- ---- $300.0 -12.2% 0.4%
-2.7% -14.5% $256.4 ====== ==== === === ==== ====== Nine Months
Ended ---------------------------------------------------------
Sept. 30, Foreign Sept. 30, Divisions 2008 Organic Acquired
Exchange Total 2009 --------- ---- ------- -------- -------- -----
---- Custom Sols & ITO $401.2 -17.0% 0.9% -% -16.1% $336.6 U.S.
ERP 93.1 -0.2 - - -0.2 92.9 Federal 96.7 -9.1 - - -9.1 87.9 Europe
321.0 -3.4 0.2 -16.4 -19.6 258.0 ----- ---- --- ----- ----- -----
$912.0 -9.7% 0.5% -5.8% -15.0% $775.4 ====== ==== === === ====
====== II. EBITDA Reconciliation to Net Income ($ in thousands)
Three Months Ended Nine Months Ended ------------------------------
-------------------- Sept. 30, June 30, Sept. 30, Sept. 30, Sept.
30, 2008 2009 2009 2008 2009 ---- ---- ---- ---- ---- Net Income
Attributable to CIBER $7,235 $4,656 $3,505 $21,347 $12,426 Net
Income Noncontrolling Interest 197 53 54 824 139 --- --- --- ---
--- Consolidated Net Income 7,432 4,709 3,559 22,171 12,565 Income
Tax 3,003 2,206 1,401 11,844 6,023 ----- ----- ----- ------ -----
Pre-Tax Income 10,435 6,915 4,960 34,015 18,588 Other Expense, net
2,778 553 2,074 11,510 2,930 ----- --- ----- ------ ----- Operating
Income 13,213 7,468 7,034 45,525 21,518 Share Based Comp. 977 1,093
817 2,537 2,986 Amortization 1,604 1,457 1,506 4,823 4,371
Depreciation 3,253 3,000 2,982 9,513 9,007 ----- ----- ----- -----
----- EBITDA $19,047 $13,018 $12,339 $62,398 $37,882 =======
======= ======= ======= ======= III. Segment Operating Results
Analysis Operating Results Analysis ($ in millions) Three Months
Ended Nine Months Ended Revenue Sept. 30, Sept. 30, Sept. 30, Sept.
30, 2008 2009 2008 2009 $ % $ % $ % $ %
--------------------------------------------------- Custom Sols
& ITO (1) --------------------- Commercial/ITO $107.3 36 $83.9
33 $308.5 34 $267.1 35 State & Local 25.9 8 22.6 9 92.7 10 69.5
9 ---- --- ---- --- ---- -- ---- --- Sub 133.2 44 106.5 42 401.2 44
336.6 44 U.S. ERP (2) ------------ Commercial 16.4 5 11.9 5 41.9 5
37.2 5 State & Local 13.7 5 19.3 7 51.2 5 55.7 7 ---- --- ----
--- ---- --- ---- --- Sub 30.1 10 31.3 12 93.1 10 92.9 12 Federal
31.4 11 29.1 11 96.7 11 87.9 11 Europe (3) 105.3 35 89.5 35 321.0
35 258.0 33 ----- --- ---- --- ----- --- ----- --- Total $300.0
100% $256.4 100% $912.0 100% $775.4 100% ====== === ====== ===
====== === ====== === Three Months Ended Nine Months Ended EBITA
Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2008 2009 2008 2009 $ % $ %
$ % $ % ------------------------------------------------- Custom
Sols & ITO (1) --------------------- Commercial/ITO - - - -
State & Local - - - - --- --- --- --- Sub $13.5 10 $7.0 7 $40.3
10 $22.5 7 U.S. ERP (2) ------------- Commercial - - - - State
& Local - - - - --- --- --- --- Sub (1.7) (6) 2.8 9 0.1 0 6.4 7
Federal 2.8 9 1.5 5 7.1 7 4.9 5 Europe (3) 7.3 7 4.8 5 23.7 8 13.2
5 Corporate (7.1) (2) (7.6) (3) (20.9) (2) (21.1) (3) ----- ---
---- --- ----- --- ------ --- EBITA 14.8 5 8.5 3 50.3 6 25.9 3
----- Amortization (1.6) (1) 1.5 - (4.8) (1) 4.4 - ----- --- ---
--- ---- --- --- --- Operating Income $13.2 4% $7.0 3% $45.5 5%
$21.5 3% ===== === ==== === ===== === ===== === Note: India
operations are in Custom Solutions and Asia Pacific operations are
in Europe; Custom Solutions also includes domestic eliminations.
(1) These Divisions have been combined and prior revenue partially
reclassified, accordingly, margins cannot be accurately separated.
(2) This activity has always been operated together; highlighting
State & Local revenue will assist the overall view of CIBER's
public sector emphasis. (3) Public sector business also exists in
the European Division, both national and local; it is approximately
5% of these revenues. DATASOURCE: CIBER, Inc. CONTACT: Doug
Eisenbrandt, Director/Investor Relations of CIBER, Inc.,
+1-303-220-0100, Web Site: http://www.ciber.com/
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