EX-99.1 2 a63014earningsrelease.htm EXHIBIT 6/30/14 Earnings Release


Exhibit 99.1

Ciber, Inc.
6363 S. Fiddler's Green Circle, Suite 1400
Greenwood Village, CO 80111
www.ciber.com

CIBER REPORTS SECOND QUARTER 2014 RESULTS

GREENWOOD VILLAGE, Colo., July 29, 2014 – Ciber, Inc. (NYSE: CBR), a leading global information technology consulting, services and outsourcing company, today reported results for the second quarter of 2014.

Highlights From Continuing Operations for the Second Quarter 2014 Include:
Revenue of $214.6 million, a 3% decrease in U.S. dollars and a 5% decrease in constant currency versus the prior year
Operating income before amortization, restructuring charges and management transition costs, of $4.1 million, representing an operating income margin of 1.9%
Net loss from continuing operations of $5.2 million, or net income from continuing operations of $1.3 million before amortization, restructuring charges and management transition costs, or $0.02 per share
Operating cash flow from continuing operations of $3.3 million

President and Chief Executive Officer Michael Boustridge said, "Despite progress in North America, our second-quarter results were below internal expectations. Challenges in International have been an ongoing area of management focus, diluting the significant opportunity Ciber is uniquely positioned to capture. These issues require immediate action and we have begun implementation of a plan to accelerate the move to global practice areas and substantively change our global delivery mix. These changes will be executed methodically and with a sense of urgency."

Christian Mezger, Chief Financial Officer, commented, "We announced a $24 million restructuring program focused on the implementation of a go-to-market model, realigning the organization and improving our offshore delivery mix. The program will begin in the third quarter of 2014 and is expected to be completed in the next twelve months. Finally, our cash position and growth in our operating cash flow, permit us the flexibility to execute our plans."

Market Highlights in the Second Quarter Include:

Berry Bros. & Rudd, a wine and spirits merchant in the U.K., has chosen Ciber to implement an SAP ERP system to support retail operations as well as the company’s online wine trading platform. Founded in 1698, Berry Bros. and Rudd is one of Britain’s oldest, most respected wine merchants.
The City of Philadelphia picked Ciber to support system modernization efforts with implementation of an Oracle ERP system.





A leading global hospitality company chose Ciber's Business Consulting practice to manage the company's new Enterprise Quality Assurance Center to drive quality through all facets of the IT lifecycle.
A leading global financial services company engaged Ciber’s Application Development and Management practice to create a next-generation client reporting platform.

Second Quarter Financial Results from Continuing Operations

Revenue of $214.6 million decreased 3% in U.S. dollars and 5% in constant currency, compared with last year’s second quarter. Sequentially from the first quarter of 2014, revenue was down 2% in both U.S. dollars and constant currency.

Gross margin for the second quarter was 25.4%, compared with 25.4% in last year’s second quarter and 25.9% in the first quarter of 2014.

Selling, general and administrative expenses (SG&A), in the second quarter were $55.4 million. Excluding management transition costs, SG&A in the second quarter was $50.4 million, flat compared to the second quarter of last year, and an increase of 1.6% sequentially.

Second quarter 2014 operating income from continuing operations of $4.1 million, before amortization, restructuring charges and management transition costs, yielded an operating margin of 1.9%, compared to 2.6% in the prior-year second quarter, and 3.2% in the first quarter of 2014. Including amortization, restructuring charges and management transition costs, operating loss from continuing operations was $2.4 million.

Net income from continuing operations, before amortization, restructuring charges and management transition costs, for the second quarter of 2014 was $1.3 million, or $0.02 per share. Including amortization, restructuring charges and management transition costs, net loss from continuing operations was $5.2 million in the quarter. Last year’s second quarter net income from continuing operations, before restructuring, was $3.4 million, or $0.04 on a per share basis. For the first quarter of 2014, net income from continuing operations, before restructuring, was $4.0 million, or $0.05 per share.

Revenue in the International division was $109.8 million for the second quarter of 2014, which was down 4% compared to the year-ago second quarter, and down 8% in constant currency. Compared to the first quarter of 2014, International revenue was down 5% in both U.S. dollars and constant currency. Operating margin of 2.9% was down 240 basis points compared to the second quarter of 2013 and down 300 basis points from the first quarter of 2014.

The North American division posted revenue of $105.2 million, down 2% from the year-ago second quarter and up 2% compared to the first quarter of 2014. Operating margin of 8.7% improved 70 basis points from the year-ago second quarter and 50 basis points from the first quarter of 2014.

Capital Deployment and Liquidity

Ciber’s cash balance at the end of the second quarter of 2014 was $20.4 million. The outstanding balance on the credit facility was $7.4 million.






Cash flow used in operating activities (continuing operations) year-to-date through June 30 was $27.3 million, an increase of $10.1 million versus the prior year. Days Sales Outstanding (DSO) were 67 days. Capital expenditures totaled $2.9 million in the quarter.

Restructuring

On July 25, 2014, we approved a restructuring plan focused on the implementation of a go-to-market model, realigning the organization and improving our offshore delivery mix ("the 2014 Plan"). The 2014 Plan will commence in the third quarter of 2014 and is expected to be completed in the next twelve months. We estimate the total amount of the restructuring charges for the 2014 Plan will be approximately $24 million, substantially all of which will be cash.

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 www.ciber.com/cbr.

Investor and Analyst Conference Call
Ciber President and Chief Executive Officer Michael Boustridge invites you to participate in a conference call or audiocast today at 8:30 a.m. Eastern Time to discuss the Company’s financial results.
The live audiocast of the conference call will be available to the public at www.ciber.com/cbr. To participate in the conference call, dial 866-318-8613 (U.S.) or +1-617-399-5132 (outside the U.S.) ten minutes prior to the start of the call and provide the operator with the pass code 75328445.
A replay of the call and webcast will be available one hour after the call ends through August 29, 2014. To access the telephone replay, dial 888-286-8010 (U.S.) or +1-617-801-6888 (outside the U.S.) and use the pass code 36238985. The webcast replay will be available at www.ciber.com/cbr.

Non-GAAP Financial Information
Ciber presents a number of non-GAAP measurements because management believes that these metrics provide meaningful supplemental information in addition to the GAAP metrics and provide comparability and consistency to prior periods. These non-GAAP measurements include: second quarter 2014 revenue change year-over-year adjusted for currency; second quarter year to date 2014 revenue change year-over-year adjusted for currency; second quarter 2014 sequential revenue change adjusted for currency; international second quarter 2014 revenue change year-over-year adjusted for currency; international second quarter year to date 2014 revenue change year-over-year adjusted for currency; international second quarter 2014 sequential revenue change adjusted for currency; second quarter 2014 SG&A expenses excluding management transition costs; second quarter 2014 operating income from continuing operations and operating margin adjusted for restructuring, amortization, and management transition costs; first quarter 2014 operating income from continuing operations and operating margin adjusted for restructuring charges, amortization and management transition costs; second quarter 2013 operating income from continuing operations and operating margin adjusted for restructuring charges, amortization and management transition costs; second quarter 2014 net income from continuing operations and net income per share from continuing operations adjusted for restructuring charges, amortization and management transition costs; first quarter 2014 net income from continuing operations and net income per share from continuing operations adjusted for restructuring charges, amortization and management transition costs; and second quarter 2013 net income from continuing operations and net income per share from continuing operations adjusted for restructuring charges, amortization and management transition costs. Reconciliations of non-GAAP to comparable GAAP measures are available in the schedules





accompanying this release. These reconciliations may also be found in the Investor Relations section of the Company's website at www.ciber.com/cbr.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 relating to our operations, results of operations and other matters that are based on our current expectations, estimates, forecasts and projections. Words, such as “anticipate,” “believe,” “could,” “expect,” “estimate,” “intend,” “may,” “opportunity,” “plan,” “positioned,” “potential,” “project,” “should,” and “will” and similar expressions, are intended to identify these forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Risks, uncertainties and
other factors that could cause actual results to differ materially from those expressed or implied by our forward-looking statements include, but are not limited to, risks that: our results of operations may be adversely affected if we are unable to execute on the key elements of our strategic plan or our strategic plan proves to be less successful than anticipated; if we are not able to anticipate and keep pace with rapid changes in technology, our business may be negatively affected; a data security or privacy breach could adversely affect our business; we may experience declines in revenue and profitability if we do not accurately estimate the cost of engagements conducted on a fixed-price basis; our business could be adversely affected if our clients are not satisfied with our services, and we could face damage to our professional reputation and/or legal liability; termination of a contract by a significant client and/or cancellation with short notice could adversely affect our results of operations; our results of operations can be adversely affected by economic conditions and the impacts of economic conditions on our clients' operations and technology spending; if we do not continue to improve our operational, financial and other internal controls and systems to manage our growth and size or if we are unable to enter, operate and compete effectively in new geographic markets, our results of operations may suffer and the value of our business may be harmed; our brand and reputation are key assets and competitive advantages of our Company and our business may be affected by how we are perceived in the marketplace; our future success depends on our ability to continue to retain and attract qualified sales, delivery and technical employees; we cannot guarantee that we are in compliance with all applicable laws and regulations; if we are unable to protect our intellectual property rights from unauthorized use or infringement by third parties, our business could be adversely affected; our services or solutions could infringe upon the intellectual property rights of others, or we might lose our ability to utilize rights we claim in intellectual property or the intellectual property of others; if we are unable to collect our receivables, our results of operations and cash flows could be adversely affected; our credit agreement, an asset-based loan facility, limits our operational and financial flexibility; our revenues, operating results and profitability may vary from quarter to quarter and may result in increased volatility in the price of our stock; our international operations expose us to additional risks that could have adverse effects on our business and operating results; the IT services industry, in the U.S. and internationally, is highly competitive, with increased focus on offshore capability and we may not be able to compete effectively in this evolving marketplace; our operations are vulnerable to disruptions that may impact our results of operations and from which we may not recover; we might not be successful at identifying, acquiring, or integrating businesses or entering into joint ventures; we could incur additional losses due to further impairment in the carrying value of our goodwill; we depend on contracts with various public sector agencies for a significant portion of our revenue and, if the spending policies or budget priorities of these agencies change, we could lose revenue; unfavorable government audits could require us to adjust previously reported operating results, to forego anticipated revenue and subject us to penalties and sanctions; we have adopted anti-takeover defenses that could make it difficult for another company to acquire control of Ciber or limit the price investors might be willing to pay for our stock, thus affecting the market price of our securities. For a more detailed





discussion of these factors, see the information under the “Risk Factors” heading in our Annual Report on Form 10-K for the year ended December 31, 2013 and other documents filed with or furnished to the Securities and Exchange Commission. We undertake no obligation to publicly update any forward-looking statements in light of new information or future events. Readers are cautioned not to put undue reliance on forward-looking statements.


About Ciber, Inc.
Ciber is a leading global IT consulting company with some 6,500 consultants and contractors in North America, Europe and Asia/Pacific, and approximately $1 billion of annual business. Client focused and results driven, Ciber partners with organizations to develop technology strategies and solutions that deliver tangible business value. Founded in 1974, the company trades on the New York Stock Exchange (NYSE: CBR). For more information, visit www.ciber.com.


###

Contact:
Christian Mezger
Investor Relations
303-267-3857
cmezger@ciber.com

Betsy Loeff
Media Relations
303-967-1304
bloeff@ciber.com








Ciber, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
REVENUES
 
 
 
 
 
 
 
Consulting services
$
202,639

 
$
208,782

 
$
407,620

 
$
417,826

Other revenue
12,007

 
11,613

 
25,037

 
22,110

Total revenues
214,646

 
220,395

 
432,657

 
439,936

 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
Cost of consulting services
153,260

 
158,440

 
307,111

 
316,014

Cost of other revenue
6,830

 
5,917

 
14,419

 
12,658

Selling, general and administrative
55,393

 
50,399

 
105,033

 
100,490

Amortization of intangible assets
67

 

 
67

 

Restructuring charges
1,508

 
604

 
1,406

 
953

Total operating expenses
217,058

 
215,360

 
428,036

 
430,115

 
 
 
 
 
 
 
 
OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS
(2,412
)
 
5,035

 
4,621

 
9,821

 
 
 
 
 
 
 
 
Interest expense
(536
)
 
(463
)
 
(898
)
 
(1,520
)
Other income (expense), net
(20
)
 
288

 
(90
)
 
667

 
 
 
 
 
 
 
 
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(2,968
)
 
4,860

 
3,633

 
8,968

Income tax expense
2,201

 
1,925

 
4,736

 
4,584

 
 
 
 
 
 
 
 
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
(5,169
)
 
2,935

 
(1,103
)
 
4,384

Loss from discontinued operations, net of income tax
(288
)
 
(4,555
)
 
(430
)
 
(4,537
)
 
 
 
 
 
 
 
 
CONSOLIDATED NET LOSS
(5,457
)
 
(1,620
)
 
(1,533
)
 
(153
)
Net income attributable to noncontrolling interests
10

 
146

 
15

 

 
 
 
 
 
 
 
 
NET LOSS ATTRIBUTABLE TO CIBER, INC.
$
(5,467
)
 
$
(1,766
)
 
$
(1,548
)
 
$
(153
)
 
 
 
 
 
 
 
 
Basic and diluted earnings (loss) per share attributable to Ciber, Inc.:
 
 
 
 
 
 
 
Continuing operations
$
(0.07
)
 
$
0.04

 
$
(0.01
)
 
$
0.06

Discontinued operations

 
(0.06
)
 
(0.01
)
 
(0.06
)
Basic and diluted earnings (loss) per share attributable to Ciber, Inc.
$
(0.07
)
 
$
(0.02
)
 
$
(0.02
)
 
$

 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
Basic
77,301

 
74,690

 
76,877

 
74,381

Diluted
77,301

 
75,412

 
76,877

 
75,011







Ciber, Inc.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(Unaudited)
 
 
June 30,
2014
 
December 31,
2013
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
20,364

 
$
44,483

Accounts receivable, net of allowances of $2,460 and $2,335, respectively
197,508

 
189,382

Prepaid expenses and other current assets
22,312

 
22,794

Total current assets
240,184

 
256,659

 
 
 
 
Property and equipment, net of accumulated depreciation of $47,216 and $48,500, respectively
15,210

 
12,923

Goodwill
283,333

 
281,714

Other assets
10,667

 
6,522

 
 
 
 
TOTAL ASSETS
$
549,394

 
$
557,818

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Liabilities:
 
 
 
Current liabilities:
 
 
 
Current portion of long-term debt
$

 
$
53

Accounts payable
27,003

 
34,223

Accrued compensation and related liabilities
53,075

 
69,622

Deferred revenue
17,931

 
20,989

Income taxes payable
877

 
1,654

Other accrued expenses and liabilities
42,632

 
44,190

Total current liabilities
141,518

 
170,731

 
 
 
 
Long-term debt
7,400

 

Deferred income taxes
26,591

 
23,910

Other long-term liabilities
12,564

 
10,119

Total liabilities
188,073

 
204,760

 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
Equity:
 
 
 
Ciber, Inc. shareholders' equity:
 
 
 
Preferred stock, $0.01 par value, 1,000 shares authorized, no shares issued

 

Common stock, $0.01 par value, 100,000 shares authorized, 78,164 and 75,822 shares issued, respectively
782

 
758

Treasury stock, at cost, 263 and 37 shares, respectively
(1,265
)
 
(150
)
Additional paid-in capital
355,714

 
343,944

Retained earnings
1,778

 
4,887

Accumulated other comprehensive income
3,774

 
3,096

Total Ciber, Inc. shareholders' equity
360,783

 
352,535

Noncontrolling interests
538

 
523

Total equity
361,321

 
353,058

 
 
 
 
TOTAL LIABILITIES AND EQUITY
$
549,394

 
$
557,818

 






Ciber, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
 
Six Months Ended June 30,
 
2014
 
2013
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
Consolidated net loss
$
(1,533
)
 
$
(153
)
Adjustments to reconcile consolidated net loss to net cash used in operating activities:
 
 
 
Loss from discontinued operations
430

 
4,537

Depreciation
2,611

 
3,080

Amortization of intangible assets
67

 

Deferred income tax expense
2,413

 
2,516

Provision for (recovery on) doubtful receivables
(65
)
 
712

Share-based compensation expense
7,420

 
3,669

Amortization of debt costs
285

 
513

Other, net
195

 
208

Changes in operating assets and liabilities:
 
 
 
Accounts receivable
(8,413
)
 
(16,157
)
Other current and long-term assets
2,040

 
(470
)
Accounts payable
(7,129
)
 
793

Accrued compensation and related liabilities
(17,195
)
 
(13,759
)
Other current and long-term liabilities
(5,985
)
 
(1,914
)
Income taxes payable/refundable
(2,391
)
 
(738
)
Cash used in operating activities — continuing operations
(27,250
)
 
(17,163
)
Cash used in operating activities — discontinued operations
(779
)
 
(3,367
)
Cash used in operating activities
(28,029
)
 
(20,530
)
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
Acquisition
(845
)
 

Purchases of property and equipment, net
(5,009
)
 
(1,286
)
Cash used in investing activities — continuing operations
(5,854
)
 
(1,286
)
Cash used in investing activities — discontinued operations

 
(313
)
Cash used in investing activities
(5,854
)
 
(1,599
)
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
Borrowings on long-term debt
157,869

 
146,987

Payments on long-term debt
(150,414
)
 
(144,274
)
Employee stock purchases and options exercised
4,373

 
1,625

Purchase of shares for employee tax withholdings
(2,675
)
 
(429
)
 Payment of initial fair value of acquisition-related contingent consideration

 
(3,428
)
Cash provided by financing activities — continuing operations
9,153

 
481

Effect of foreign exchange rate changes on cash and cash equivalents
611

 
(3,580
)
Net decrease in cash and cash equivalents
(24,119
)
 
(25,228
)
Cash and cash equivalents, beginning of period
44,483

 
58,849

Cash and cash equivalents, end of period
$
20,364

 
$
33,621







Ciber, Inc.
SUMMARY SEGMENT DATA
(Dollars in thousands)
(Unaudited)

Summary Segment Analysis
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
Change
 
2014
 
2013
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
International
$
109,830

 
$
113,935

 
(4
)%
 
$
224,811

 
$
226,610

 
(1
)%
North America
105,154

 
106,759

 
(2
)%
 
208,632

 
213,928

 
(2
)%
Other
567

 
895

 
n/m

 
1,221

 
1,742

 
n/m

Total segment revenues
215,551

 
221,589

 
(3
)%
 
434,664

 
442,280

 
(2
)%
Inter-segment
(905
)
 
(1,194
)
 
n/m

 
(2,007
)
 
(2,344
)
 
n/m

Total revenues
$
214,646

 
$
220,395

 
(3
)%
 
$
432,657

 
$
439,936

 
(2
)%
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss) from continuing operations:
 
 
 
 
 
 
 
 
 
 
 
International
$
3,231

 
$
6,000

 
(46
)%
 
$
10,055

 
$
10,951

 
(8
)%
North America
9,109

 
8,502

 
7
 %
 
17,581

 
16,598

 
6
 %
Other
(4
)
 
82

 
n/m

 
133

 
118

 
n/m

Total segment operating income
12,336

 
14,584

 
(15
)%
 
27,769

 
27,667

 
 %
Corporate expenses
(13,173
)
 
(8,945
)
 
(47
)%
 
(21,675
)
 
(16,893
)
 
(28
)%
Operating income (loss) from continuing operations before amortization and restructuring charges
(837
)
 
5,639

 
(115
)%
 
6,094

 
10,774

 
(43
)%
Amortization of intangible assets
(67
)
 

 
n/m

 
(67
)
 

 
n/m

Restructuring charges
(1,508
)
 
(604
)
 
n/m

 
(1,406
)
 
(953
)
 
n/m

Total operating income (loss) from continuing operations
$
(2,412
)
 
$
5,035

 
(148
)%
 
$
4,621

 
$
9,821

 
(53
)%
_____________
n/m = not meaningful

Segments as Percent of Total Segment Revenue and Total Segment Operating Income
(excluding Inter-segment, corporate expenses, goodwill impairment and amortization)

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Revenues:
 
 
 
 
 
 
 
International
51
%
 
51
%
 
52
%
 
51
 %
North America
49
%
 
49
%
 
48
%
 
49
 %
Other
%
 
%
 
%
 
 %
Total segment revenues
100
%
 
100
%
 
100
%
 
100
 %
 
 
 
 
 
 
 
 
Operating income:
 
 
 
 
 
 
 
International
26
%
 
41
%
 
36
%
 
40
 %
North America
74
%
 
58
%
 
63
%
 
60
 %
Other
%
 
1
%
 
1
%
 
 %
Total segment operating income
100
%
 
100
%
 
100
%
 
100
 %

Segment Operating Margins
(excluding corporate expenses, amortization and restructuring charges)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Operating margin:
 
 
 
 
 
 
 
International
3
 %
 
5
%
 
5
%
 
5
%
North America
9
 %
 
8
%
 
8
%
 
8
%
Other
(1
)%
 
9
%
 
11
%
 
7
%
Total segment operating margin
6
 %
 
7
%
 
6
%
 
6
%





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, 2014 Comparison to Three Months Ended June 30, 2013
 
 
Constant Currency Revenue Decrease
 
Foreign Exchange Impact
 
GAAP Reported Revenue Decrease
Revenues:
 
 
 
 
 
 
Consolidated
 
(4.4
)%
 
1.8
%
 
(2.6
)%
 
 
 
 
 
 
 
International
 
(7.1
)%
 
3.5
%
 
(3.6
)%

 
 
Six Months Ended June 30, 2014 Comparison to Six Months Ended June 30, 2013
 
 
Constant Currency Revenue Decrease
 
Foreign Exchange Impact
 
GAAP Reported Revenue Decrease
Revenues:
 
 
 
 
 
 
Consolidated
 
(3.5
)%
 
1.8
%
 
(1.7
)%
 
 
 
 
 
 
 
International
 
(4.4
)%
 
3.6
%
 
(0.8
)%



 
 
Three Months Ended June 30, 2014 Sequential Comparison to Three Months Ended March 31, 2014
 
 
Constant Currency Revenue Decrease
 
Foreign Exchange Impact
 
GAAP Reported Revenue Decrease
Revenues:
 
 
 
 
 
 
Consolidated
 
(1.6
)%
 
0.1
%
 
(1.5
)%
 
 
 
 
 
 
 
International
 
(4.6
)%
 
0.1
%
 
(4.5
)%


Adjusted Results of Operations

 
Consolidated
 
Three Months Ended June 30, 2014
 
In millions
GAAP SG&A expenses
$
55.4

Management transition costs
(5.0
)
SG&A expenses excluding management transition costs
$
50.4











 
Consolidated*
 
Three Months Ended June 30, 2014
 
Three Months Ended
March 31, 2014
 
Three Months Ended
June 30, 2013
 
In millions
 
 Margin
 
In millions
 
 Margin
 
In millions
 
 Margin
GAAP reported operating income (loss) from continuing operations
$
(2.4
)
 
(1.1
)%
 
$
7.0

 
3.2
%
 
$
5.0

 
2.3
%
Restructuring charges (credit)
1.5

 
0.7

 
(0.1
)
 

 
0.6

 
0.3

Amortization of intangible assets
0.1

 

 

 

 

 

Management transition costs
5.0

 
2.3

 

 

 

 

Operating income from continuing operations before restructuring charges
$
4.1

 
1.9
 %
 
$
6.9

 
3.2
%
 
$
5.6

 
2.6
%
*Columns may not total due to rounding

 
Consolidated*
 
Three Months Ended June 30, 2014
 
Three Months Ended March 31, 2014
 
Three Months Ended June 30, 2013
 
In millions
 
Per Share
 
In millions
 
Per Diluted Share
 
In millions
 
Per Diluted Share
GAAP net income (loss) from continuing operations
(5.2
)
 
$
(0.07
)
 
$
4.1

 
$
0.05

 
$
2.9

 
$
0.04

Restructuring charges (credit)
1.5

 
0.02

 
(0.1
)
 

 
0.6

 

Tax impact of restructuring charges

 

 
0.1

 

 
(0.1
)
 

Amortization of intangibles
0.1

 

 

 

 

 

Management transition costs
5.0

 
0.06

 

 

 

 

Net income from continuing operations before restructuring charges
$
1.3

 
$
0.02

 
$
4.0

 
$
0.05

 
$
3.4

 
$
0.04

*Columns may not total due to rounding