ATLANTA, Oct. 30, 2019 (GLOBE NEWSWIRE) -- PRGX Global, Inc. (Nasdaq: PRGX), a global leader in Recovery Audit and Spend Analytics services, today announced its unaudited financial results for the third quarter and nine months ended September 30, 2019.
Quarterly Highlights
- Revenue from continuing operations of $42.3 million, a decrease of $1.0 million from the prior year; revenue decreased 0.5% on a currency adjusted basis
- Adjusted EBITDA from continuing operations of $5.6 million and net loss from continuing operations of $1.5 million
- Impact of cost reduction and business line rationalization beginning to positively impact Adjusted EBITDA
- Establishing guidance for the fourth quarter of 2019 at $46 million to $49 million for revenue and $11.5 million to $13.3 million for Adjusted EBITDA
- Establishing annual guidance for Adjusted EBITDA in 2020 of $28 million to $30 million
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||
| Selected Financial Data (dollars in thousands) | 2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||||||||
| Revenue | |||||||||||||||||||||
| Recovery Audit Services - Americas | $ | 29,987 | $ | 28,806 | 4.1 | % | $ | 86,295 | $ | 83,676 | 3.1 | % | |||||||||
| Recovery Audit Services - Europe/Asia-Pacific | 10,803 | 12,191 | -11.4 | % | 32,398 | 33,663 | -3.8 | % | |||||||||||||
| Adjacent Services | 1,500 | 2,323 | -35.4 | % | 4,375 | 4,804 | -8.9 | % | |||||||||||||
| Total | $ | 42,290 | $ | 43,320 | -2.4 | % | $ | 123,068 | $ | 122,143 | 0.8 | % | |||||||||
| Net (loss) income from continuing operations | (1,542 | ) | 2,626 | -158.7 | % | (9,959 | ) | (2,582 | ) | -285.7 | % | ||||||||||
| Non-GAAP Financial Measures | |||||||||||||||||||||
| Adjusted EBITDA from continuing operations | $ | 5,592 | $ | 6,433 | -13.1 | % | $ | 10,181 | $ | 13,804 | -26.2 | % | |||||||||
“We made significant progress in rationalizing costs during the quarter and scaled back our activity in Adjacent Services given our stated goal of profitability in the fourth quarter. We have substantially completed our planned expense reductions that we began during the second quarter, and these actions have reduced our costs by more than $10 million on an annualized basis. These cost reductions will be more apparent during the fourth quarter and throughout next year. We are also pleased with the continued progress on enhancing our technology platform, which is on track. With respect to our financial performance for the quarter, we experienced revenue headwinds with adverse foreign currency changes, reduced activity in Adjacent Services and slower-than-expected claims conversions at several recovery audit clients,” said Ron Stewart, president and chief executive officer.
“While we are disappointed in our year-to-date financial results, we believe we have made the right course corrections during the year such that we are confident in setting an expectation at this time that we will deliver 2020 Adjusted EBITDA within a range of $28 to $30 million. Furthermore, our guidance for 2020 reflects more conservative assumptions regarding claims generation and conversion in our recovery audit business compared to this year, and continued business line rationalization to improve Adjusted EBITDA and free cash flow from operations,” concluded Stewart.
Consolidated Results from Continuing Operations for the Three Months Ended September 30, 2019
Consolidated revenue from continuing operations for the third quarter of 2019 was $42.3 million, compared to $43.3 million for the same period in 2018, a decrease of 2.4%. Third quarter 2019 revenue from the Recovery Audit Services segments was $40.8 million compared to $41.0 million in the prior year, and from the Adjacent Services segment was $1.5 million compared to $2.3 million in 2018. On a constant dollar basis adjusted for changes in foreign exchange rates, revenue decreased by 0.5% in the third quarter of 2019 compared to the same period in the prior year.
Total cost of revenue from continuing operations for the third quarter of 2019 was $25.5 million, or 60.4% of revenue, compared to $26.1 million, or 60.4% of revenue, for the same period in the prior year.
Selling, general and administrative expenses from continuing operations for the third quarter of 2019 were $13.5 million compared to $12.5 million in the prior year period.
Consolidated net loss from continuing operations for the third quarter of 2019 was $1.5 million, or $(0.07) per basic and diluted share, compared to net income of $2.6 million, or $0.11 per basic and diluted share, for the same period in 2018.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) from continuing operations for the third quarter of 2019 was $5.6 million, or 13.2% of revenue, compared to Adjusted EBITDA of $6.4 million, or 14.8% of revenue, for the third quarter of 2018, a decrease of $0.8 million or 13.1%.
Schedule 3 attached to this press release provides a reconciliation of net loss to each of Earnings Before Interest and Taxes (EBIT), Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA.
Consolidated Results from Continuing Operations for the Nine Months Ended September 30, 2019
Consolidated revenue from continuing operations for the nine months ended September 30, 2019 was $123.1 million, compared to $122.1 million for the same period in 2018, an increase of 0.8%. For the nine months ended September 30, 2019, revenue from the Recovery Audit Services segments was $118.7 million compared to $117.3 million in the prior year, and from the Adjacent Services segment was $4.4 million compared to $4.8 million in 2018. On a constant dollar basis adjusted for changes in foreign exchange rates, revenue increased by 2.8% for the nine months ended September 30, 2019 compared to the same period in the prior year.
Total cost of revenue from continuing operations for the nine months ended September 30, 2019 was $77.1 million, or 62.6% of revenue, compared to $78.3 million, or 64.1% of revenue, for the same period in the prior year, representing a 1.5% improvement as a percentage of revenue.
Selling, general and administrative expenses from continuing operations for the nine months ended September 30, 2019 were $43.2 million compared to $36.6 million in the prior year period.
Consolidated net loss from continuing operations for the nine months ended September 30, 2019 was $10.0 million, or $(0.44) per basic and diluted share, compared to net loss of $2.6 million, or $(0.12) per basic and diluted share, for the same period in 2018.
Adjusted EBITDA from continuing operations for the nine months ended September 30, 2019 was $10.2 million, or 8.3% of revenue, compared to Adjusted EBITDA of $13.8 million, or 11.3% of revenue, for the same period in 2018, a decrease of $3.6 million or 26.2%.
Schedule 3 attached to this press release provides a reconciliation of net loss to each of EBIT, EBITDA and Adjusted EBITDA.
Cash Flow and Liquidity
Net cash provided by operating activities for the third quarter of 2019 was $5.7 million, compared to $2.9 million in the third quarter of the prior year, and net cash provided by operating activities was $3.2 million for the nine months ended September 30, 2019, compared to net cash used of $3.4 million in the same period in the prior year.
At September 30, 2019, the Company had unrestricted cash and cash equivalents of $11.1 million, and borrowings of $36.0 million against its $60.0 million revolving credit facility.
Guidance
The Company is establishing guidance for the fourth quarter of 2019 at $46 million to $49 million for revenue and $11.5 million to $13.3 million for Adjusted EBITDA.
For 2020, Adjusted EBITDA is expected to be in the range of $28 million to $30 million.
Stock Repurchase Program
Since the February 2014 announcement of the Company’s stock repurchase program, as of September 30, 2019, the Company has repurchased 9.7 million shares. The Company repurchased approximately 0.6 million shares of its outstanding common stock for an aggregate price of $4.2 million in the nine months ended September 30, 2019.
Third Quarter Earnings Call
As previously announced, management will hold a conference call later today at 5:00 PM (Eastern time) to discuss the Company’s third quarter 2019 financial results. To access the conference call, listeners in the U.S. and Canada should dial (877) 755-7423 at least 5 minutes prior to the start of the conference. Listeners outside the U.S. and Canada should dial (678) 894-3069. To be admitted to the call, listeners should use passcode 6862128.
This teleconference will also be audiocast on the Internet at www.prgx.com (click on “Events & Presentations” under “Investors”). A replay of the audiocast will be available at the same location on www.prgx.com beginning approximately two hours after the conclusion of the live audiocast, extending through March 31, 2020. Please note that the Internet audiocast is “listen-only.” Microsoft Windows Media Player is required to access the live audiocast and the replay and can be downloaded from www.microsoft.com/en-us/downloads.
About PRGX
PRGX Global, Inc. is a global leader in Recovery Audit and Spend Analytics services. With over 1,500 employees, the Company serves clients in more than 30 countries and provides its services to 80% of the top 15 global retailers and over 25% of the top 50 companies in the Fortune 500. PRGX delivers more than $1 billion in cash flow improvement for its clients each year. The creator of the recovery audit industry more than 40 years ago, PRGX continues to innovate through technology and expanded service offerings. In addition to Recovery Audit, the Company provides Contract Compliance, Spend Analytics and Supplier Information Management services to improve clients’ financial performance and manage risk. For additional information on PRGX, please visit www.prgx.com.
Forward-Looking Statements
In addition to historical information, this press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include both implied and express statements regarding the Company’s overall condition and growth prospects, the effectiveness of the Company’s efforts to improve profitability, revenue and free cash flow and the Company’s expectations regarding its fourth quarter of 2019 financial performance and its 2020 financial performance. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from the historical results or from any results expressed or implied by such forward-looking statements. Risks that could affect the Company’s future performance include revenue that does not meet expectations or justify costs incurred, the Company’s ability to develop material sources of new revenue in addition to revenue from its core recovery audit services, changes in the market for the Company’s services, the Company’s ability to retain and attract qualified personnel, the Company’s ability to execute on its profitability improvement efforts, the Company’s ability to integrate recent and future acquisitions, uncertainty in the credit markets, the Company’s ability to maintain compliance with its financial covenants, client bankruptcies, loss of major clients, and other risks generally applicable to the Company’s business. For a discussion of other risk factors that may impact the Company’s business, please see the Company’s filings with the Securities and Exchange Commission. The Company disclaims any obligation or duty to update or modify these forward-looking statements.
Non-GAAP Financial Measures
EBIT, EBITDA and Adjusted EBITDA are all “non-GAAP financial measures” presented as supplemental measures of the Company’s performance. They are not presented in accordance with accounting principles generally accepted in the United States, or GAAP. The Company believes these measures provide additional meaningful information in evaluating its performance over time, and that the rating agencies and a number of lenders use EBITDA and similar measures for similar purposes. In addition, a measure similar to Adjusted EBITDA is used in the restrictive covenants contained in the Company’s secured credit facility. However, EBIT, EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of the Company’s results as reported under GAAP. In addition, in evaluating EBIT, EBITDA and Adjusted EBITDA, you should be aware that, as described above, the adjustments may vary from period to period and in the future the Company will incur expenses such as those used in calculating these measures. The Company’s presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. Schedule 3 to this press release provides a reconciliation of net income (loss) to each of EBIT, EBITDA and Adjusted EBITDA.
CONTACT: PRGX Global, Inc.
investor-relations@prgx.com
Phone: 770-779-3011
SCHEDULE 1
PRGX Global, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share data)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Revenue, net | $ | 42,290 | $ | 43,320 | $ | 123,068 | $ | 122,143 | |||||||
| Operating expenses: | |||||||||||||||
| Cost of revenue | 25,539 | 26,146 | 77,086 | 78,332 | |||||||||||
| Selling, general and administrative expenses | 13,544 | 12,521 | 43,209 | 36,594 | |||||||||||
| Depreciation of property, equipment and software assets | 2,648 | 1,713 | 7,232 | 5,296 | |||||||||||
| Amortization of intangible assets | 864 | 872 | 2,598 | 2,524 | |||||||||||
| Acquisition-related adjustment income | (250 | ) | (1,640 | ) | (250 | ) | (1,640 | ) | |||||||
| Total operating expenses | 42,345 | 39,612 | 129,875 | 121,106 | |||||||||||
| Operating (loss) income from continuing operations | (55 | ) | 3,708 | (6,807 | ) | 1,037 | |||||||||
| Foreign currency transaction losses on short-term intercompany balances | 905 | 70 | 1,034 | 730 | |||||||||||
| Interest expense, net | 376 | 416 | 1,441 | 1,300 | |||||||||||
| Other loss (income) | 4 | (1 | ) | (4 | ) | 16 | |||||||||
| (Loss) income from continuing operations before income tax | (1,340 | ) | 3,223 | (9,278 | ) | (1,009 | ) | ||||||||
| Income tax expense | 202 | 597 | 681 | 1,573 | |||||||||||
| Net (loss) income from continuing operations | $ | (1,542 | ) | $ | 2,626 | $ | (9,959 | ) | $ | (2,582 | ) | ||||
| Discontinued operations: | |||||||||||||||
| Income (loss) from discontinued operations | 900 | (325 | ) | 642 | (684 | ) | |||||||||
| Income tax expense | — | — | — | — | |||||||||||
| Net income (loss) from discontinued operations | 900 | (325 | ) | 642 | (684 | ) | |||||||||
| Net (loss) income | $ | (642 | ) | $ | 2,301 | $ | (9,317 | ) | $ | (3,266 | ) | ||||
| Basic (loss) income per common share: | |||||||||||||||
| Basic (loss) income from continuing operations | $ | (0.07 | ) | $ | 0.11 | $ | (0.44 | ) | $ | (0.12 | ) | ||||
| Basic income (loss) from discontinued operations | 0.04 | (0.01 | ) | 0.03 | (0.02 | ) | |||||||||
| Total basic (loss) income per common share | $ | (0.03 | ) | $ | 0.10 | $ | (0.41 | ) | $ | (0.14 | ) | ||||
| Diluted (loss) income per common share: | |||||||||||||||
| Diluted (loss) income from continuing operations | $ | (0.07 | ) | $ | 0.11 | $ | (0.44 | ) | $ | (0.11 | ) | ||||
| Diluted income (loss) from discontinued operations | 0.04 | (0.01 | ) | 0.03 | (0.03 | ) | |||||||||
| Total diluted (loss) income per common share | $ | (0.03 | ) | $ | 0.10 | $ | (0.41 | ) | $ | (0.14 | ) | ||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 22,770 | 23,558 | 22,715 | 23,142 | |||||||||||
| Diluted | 22,770 | 24,207 | 22,715 | 23,142 | |||||||||||
SCHEDULE 2
PRGX Global, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
| September 30, 2019 | December 31, 2018 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 11,131 | $ | 13,973 | |||
| Restricted cash | 106 | 46 | |||||
| Receivables: | |||||||
| Contract receivables, net | 37,503 | 46,865 | |||||
| Employee advances and miscellaneous receivables, net | 564 | 567 | |||||
| Total receivables | 38,067 | 47,432 | |||||
| Prepaid expenses and other current assets | 3,689 | 3,144 | |||||
| Total current assets | 52,993 | 64,595 | |||||
| Property, equipment and software, net | 25,247 | 22,028 | |||||
| Operating lease right-of-use assets | 10,037 | — | |||||
| Goodwill | 17,477 | 17,531 | |||||
| Intangible assets, net | 12,276 | 14,945 | |||||
| Deferred income taxes | 3,602 | 3,561 | |||||
| Other assets | 1,775 | 2,169 | |||||
| Total assets | $ | 123,407 | $ | 124,829 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 2,706 | $ | 7,515 | |||
| Accrued payroll and related expenses | 12,068 | 15,073 | |||||
| Current portion of operating lease liabilities | 4,046 | — | |||||
| Refund liabilities | 4,130 | 6,497 | |||||
| Deferred revenue | 1,577 | 2,428 | |||||
| Current portion of long-term debt | 25 | 48 | |||||
| Current portion of business acquisition obligations | — | 4,162 | |||||
| Total current liabilities | 24,552 | 35,723 | |||||
| Long-term debt | 35,648 | 21,553 | |||||
| Long-term operating lease liabilities | 6,569 | — | |||||
| Refund liabilities | 28 | 100 | |||||
| Deferred income taxes | 670 | 666 | |||||
| Other long-term liabilities | — | 458 | |||||
| Total liabilities | 67,467 | 58,500 | |||||
| Shareholders’ equity: | |||||||
| Common stock | 232 | 232 | |||||
| Additional paid-in capital | 581,533 | 582,574 | |||||
| Accumulated deficit | (524,773 | ) | (515,456 | ) | |||
| Accumulated other comprehensive income | (1,052 | ) | (1,021 | ) | |||
| Total shareholders’ equity | 55,940 | 66,329 | |||||
| Total liabilities and shareholders’ equity | $ | 123,407 | $ | 124,829 | |||
SCHEDULE 3
PRGX Global, Inc. and Subsidiaries
Reconciliation of Net (Loss) Income to EBIT, EBITDA and Adjusted EBITDA
(Amounts in thousands)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Reconciliation of net (loss) income to EBIT, EBITDA and Adjusted EBITDA: | |||||||||||||||
| Net (loss) income | $ | (642 | ) | $ | 2,301 | $ | (9,317 | ) | $ | (3,266 | ) | ||||
| Income tax expense | 202 | 597 | 681 | 1,573 | |||||||||||
| Interest expense, net | 376 | 416 | 1,441 | 1,300 | |||||||||||
| EBIT | (64 | ) | 3,314 | (7,195 | ) | (393 | ) | ||||||||
| Depreciation of property, equipment and software assets | 2,648 | 1,713 | 7,232 | 5,297 | |||||||||||
| Amortization of intangible assets | 864 | 872 | 2,598 | 2,524 | |||||||||||
| EBITDA | 3,448 | 5,899 | 2,635 | 7,428 | |||||||||||
| Foreign currency transaction losses on short-term intercompany balances | 905 | 70 | 1,034 | 730 | |||||||||||
| Acquisition-related adjustment income | (250 | ) | (1,640 | ) | (250 | ) | (1,640 | ) | |||||||
| Transformation, severance, and other expenses | 1,858 | 439 | 3,835 | 2,428 | |||||||||||
| Other loss (income) | 4 | (1 | ) | (4 | ) | 16 | |||||||||
| Stock-based compensation | 527 | 1,341 | 3,573 | 4,159 | |||||||||||
| Adjusted EBITDA | $ | 6,492 | $ | 6,108 | $ | 10,823 | $ | 13,121 | |||||||
| Adjusted EBITDA from continuing operations | $ | 5,592 | $ | 6,433 | $ | 10,181 | $ | 13,804 | |||||||
| Adjusted EBITDA from discontinued operations | $ | 900 | $ | (325 | ) | $ | 642 | $ | (683 | ) | |||||
EBIT, EBITDA and Adjusted EBITDA are all “non-GAAP financial measures” presented as supplemental measures of our performance. They are not presented in accordance with accounting principles generally accepted in the United States, or GAAP. The Company believes these measures provide additional meaningful information in evaluating the Company’s performance over time, and that the rating agencies and a number of lenders use EBIT, EBITDA and similar measures for similar purposes. In addition, a measure similar to Adjusted EBITDA is used in the restrictive covenants contained in the Company’s secured credit facility. However, EBIT, EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of our results as reported under GAAP. In addition, in evaluating EBIT, EBITDA and Adjusted EBITDA, you should be aware that in the future we will incur expenses such as those used in calculating these measures. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items.
SCHEDULE 4
PRGX Global, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Cash flows from operating activities: | |||||||||||||||
| Net (loss) income | $ | (642 | ) | $ | 2,301 | $ | (9,317 | ) | $ | (3,266 | ) | ||||
| Adjustments to reconcile net loss to net cash from operating activities: | |||||||||||||||
| Depreciation and amortization | 3,512 | 2,585 | 9,830 | 7,820 | |||||||||||
| Amortization of deferred loan costs | 4 | 21 | 121 | 53 | |||||||||||
| Deferred income taxes | 4 | — | 4 | 169 | |||||||||||
| Stock-based compensation expense | 527 | 1,341 | 3,573 | 4,159 | |||||||||||
| Changes in fair value of contingent consideration | (250 | ) | (1,640 | ) | (250 | ) | (1,640 | ) | |||||||
| Foreign currency transaction losses on short-term intercompany balances | 905 | 70 | 1,034 | 730 | |||||||||||
| Long-term incentive compensation payout | — | (998 | ) | — | (6,378 | ) | |||||||||
| Decrease in receivables | 3,605 | 668 | 9,347 | 550 | |||||||||||
| Increase (decrease) in accounts payable, accrued payroll and other accrued expenses | 269 | (613 | ) | (7,631 | ) | (6,222 | ) | ||||||||
| Other, primarily changes in assets and liabilities | (2,282 | ) | (792 | ) | (3,503 | ) | 596 | ||||||||
| Net cash provided by (used in) operating activities | 5,652 | 2,943 | 3,208 | (3,429 | ) | ||||||||||
| Cash flows from investing activities: | |||||||||||||||
| Purchases of property and equipment, net of disposals | (4,039 | ) | (2,572 | ) | (11,679 | ) | (7,899 | ) | |||||||
| Business acquisition, net of cash acquired | — | — | — | 19 | |||||||||||
| Net cash used in investing activities | (4,039 | ) | (2,572 | ) | (11,679 | ) | (7,880 | ) | |||||||
| Cash flows from financing activities: | |||||||||||||||
| Net borrowings under line of credit | 3,000 | — | 14,400 | 4,000 | |||||||||||
| Payment of earnout liability related to business acquisitions | (3,750 | ) | — | (4,229 | ) | (4,000 | ) | ||||||||
| Payment of deferred loan costs | — | — | (394 | ) | — | ||||||||||
| Repurchases of common stock | (1,984 | ) | — | (4,212 | ) | — | |||||||||
| Other, net | (10 | ) | 884 | (539 | ) | 2,841 | |||||||||
| Net cash (used in) provided by financing activities | (2,744 | ) | 884 | 5,026 | 2,841 | ||||||||||
| Effect of exchange rates on cash and cash equivalents | 718 | (552 | ) | 663 | 187 | ||||||||||
| Net change in cash, cash equivalents and restricted cash | (413 | ) | 703 | (2,782 | ) | (8,281 | ) | ||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 11,650 | 9,890 | 14,019 | 18,874 | |||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 11,237 | $ | 10,593 | $ | 11,237 | $ | 10,593 | |||||||
SCHEDULE 5
PRGX Global, Inc. and Subsidiaries
Results by Operating Segment *
(Amounts in thousands)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||
| Revenue, net | |||||||||||||||||||||||
| Recovery Audit Services - Americas | $ | 29,987 | $ | 28,806 | $ | 1,181 | $ | 86,295 | $ | 83,676 | $ | 2,619 | |||||||||||
| Recovery Audit Services - Europe/Asia-Pacific | 10,803 | 12,191 | (1,388 | ) | 32,398 | 33,663 | (1,265 | ) | |||||||||||||||
| Adjacent Services | 1,500 | 2,323 | (823 | ) | 4,375 | 4,804 | (429 | ) | |||||||||||||||
| Total | $ | 42,290 | $ | 43,320 | $ | (1,030 | ) | $ | 123,068 | $ | 122,143 | $ | 925 | ||||||||||
| Cost of revenue | |||||||||||||||||||||||
| Recovery Audit Services - Americas | $ | 17,201 | $ | 17,602 | $ | (401 | ) | $ | 49,140 | $ | 52,866 | $ | (3,726 | ) | |||||||||
| Recovery Audit Services - Europe/Asia-Pacific | 6,661 | 6,632 | 29 | 20,576 | 20,551 | 25 | |||||||||||||||||
| Adjacent Services | 1,677 | 1,912 | (235 | ) | 7,370 | 4,915 | 2,455 | ||||||||||||||||
| Total | $ | 25,539 | $ | 26,146 | $ | (607 | ) | $ | 77,086 | $ | 78,332 | $ | (1,246 | ) | |||||||||
| Selling, general and administrative expenses and acquisition-related adjustment | |||||||||||||||||||||||
| Recovery Audit Services - Americas | $ | 3,464 | $ | 3,058 | $ | 406 | $ | 10,490 | $ | 8,746 | $ | 1,744 | |||||||||||
| Recovery Audit Services - Europe/Asia-Pacific | 1,801 | 2,535 | (734 | ) | 6,553 | 5,643 | 910 | ||||||||||||||||
| Adjacent Services | 172 | 569 | (397 | ) | 1,081 | 1,423 | (342 | ) | |||||||||||||||
| Corporate | 8,107 | 6,359 | 1,748 | 25,085 | 20,782 | 4,303 | |||||||||||||||||
| Total selling, general and administrative expenses | $ | 13,544 | $ | 12,521 | $ | 1,023 | $ | 43,209 | $ | 36,594 | $ | 6,615 | |||||||||||
| Acquisition-related adjustments | |||||||||||||||||||||||
| Corporate | $ | (250 | ) | $ | (1,640 | ) | $ | 1,390 | $ | (250 | ) | $ | (1,640 | ) | $ | 1,390 | |||||||
| Total | $ | (250 | ) | $ | (1,640 | ) | $ | 1,390 | $ | (250 | ) | $ | (1,640 | ) | $ | 1,390 | |||||||
| Depreciation of property, equipment and software assets | |||||||||||||||||||||||
| Recovery Audit Services - Americas | $ | 2,191 | $ | 1,260 | $ | 931 | $ | 5,872 | $ | 3,876 | $ | 1,996 | |||||||||||
| Recovery Audit Services - Europe/Asia-Pacific | 176 | 164 | 12 | 520 | 512 | 8 | |||||||||||||||||
| Adjacent Services | 281 | 289 | (8 | ) | 840 | 908 | (68 | ) | |||||||||||||||
| Total | $ | 2,648 | $ | 1,713 | $ | 935 | $ | 7,232 | $ | 5,296 | $ | 1,936 | |||||||||||
| Amortization of intangible assets | |||||||||||||||||||||||
| Recovery Audit Services - Americas | $ | 437 | $ | 445 | $ | (8 | ) | $ | 1,313 | $ | 1,218 | $ | 95 | ||||||||||
| Recovery Audit Services - Europe/Asia-Pacific | 41 | 37 | 4 | 126 | 136 | (10 | ) | ||||||||||||||||
| Adjacent Services | 386 | 390 | (4 | ) | 1,159 | 1,170 | (11 | ) | |||||||||||||||
| Total | $ | 864 | $ | 872 | $ | (8 | ) | $ | 2,598 | $ | 2,524 | $ | 74 | ||||||||||
| Operating income (loss) | |||||||||||||||||||||||
| Recovery Audit Services - Americas | $ | 6,694 | $ | 6,441 | $ | 253 | $ | 19,480 | $ | 16,970 | $ | 2,510 | |||||||||||
| Recovery Audit Services - Europe/Asia-Pacific | 2,124 | 2,823 | (699 | ) | 4,623 | 6,821 | (2,198 | ) | |||||||||||||||
| Adjacent Services | (1,016 | ) | (837 | ) | (179 | ) | (6,075 | ) | (3,612 | ) | (2,463 | ) | |||||||||||
| Corporate | (7,857 | ) | (4,719 | ) | (3,138 | ) | (24,835 | ) | (19,142 | ) | (5,693 | ) | |||||||||||
| Total | $ | (55 | ) | $ | 3,708 | $ | (3,763 | ) | $ | (6,807 | ) | $ | 1,037 | $ | (7,844 | ) | |||||||
| Adjusted EBITDA from continuing operations | |||||||||||||||||||||||
| Recovery Audit Services - Americas | $ | 9,976 | $ | 8,325 | $ | 1,651 | $ | 27,697 | $ | 22,792 | $ | 4,905 | |||||||||||
| Recovery Audit Services - Europe/Asia-Pacific | 2,481 | 3,008 | (527 | ) | 5,654 | 8,468 | (2,814 | ) | |||||||||||||||
| Adjacent Services | (18 | ) | (160 | ) | 142 | (3,122 | ) | (1,468 | ) | (1,654 | ) | ||||||||||||
| Corporate | (6,847 | ) | (4,740 | ) | (2,107 | ) | (20,048 | ) | (15,988 | ) | (4,060 | ) | |||||||||||
| Total | $ | 5,592 | $ | 6,433 | $ | (841 | ) | $ | 10,181 | $ | 13,804 | $ | (3,623 | ) | |||||||||
* The Recovery Audit Services - Americas segment represents recovery audit services provided in the United States, Canada and Latin America. The Recovery Audit Services - Europe/Asia-Pacific segment represents recovery audit services provided in Europe, Asia and the Pacific region. The Adjacent Services segment represents advisory services, spend analytics and supplier information management services.