EX-99.1 2 a08-12364_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

CIBER, Inc.

5251 DTC Parkway, Suite 1400

Greenwood Village, CO  80111

www.ciber.com

 

For Immediate Release

 

Contacts:

 

Jennifer Matuschek

 

Diane Stoner

 

 

 

 

VP/Investor Relations

 

Media Relations

 

 

 

 

303-220-0100

 

303-220-0100

 

 

 

 

jmatuschek@ciber.com

 

dstoner@ciber.com

 

CIBER REPORTS STRONG FIRST QUARTER 2008 RESULTS

Revenue Increases 14% (7% organic); EPS Increases 9%

 

GREENWOOD VILLAGE, Colorado – April 24, 2008 – CIBER, Inc. (NYSE: CBR), today announced its results for the first quarter of 2008, ended March 31st.

 

First Quarter 2008 Highlights

 

·                  Record revenue of $294.5 million was $35.3 million (14%) higher than 1Q07, 7% of which was organic growth.

 

·                  Operating income of $14.9 million was 17% greater than the $12.7 million of the first quarter of 2007.

 

·                  EBITDA (see appended table) was $20.3 million, a $2.7 million (16%) increase compared to 1Q07.

 

·                  Cash Flow Provided by Operating Activities was a very strong $25.0 million versus a negative $8.7 million in 1Q07.

 

·                  Net income of $7.2 million was 9% higher than 1Q07 net income of $6.6 million.

 

·                  GAAP EPS of $0.12 per share was 9% higher than the year earlier quarter of $0.11 per share.

 

Management Comments

 

“2008 has commenced very solidly, particularly in organic revenue growth, setting a new record for quarterly revenue.  Strong results, especially in Europe and our US Commercial Division, contributed to first quarter strength,” said Mac Slingerlend, CIBER’s President and Chief Executive Officer.  “We are very encouraged in the US as we begin the second quarter with headcount stability, recent wins in our Commercial and Federal Divisions and the pipelines in our ERP and our public sector divisions.  We believe the momentum of our operations will counter the negative economic forces that prevail in a few of the territories in which we operate.”

 

1Q08 Operational Highlights

US Commercial Division

 

·                  Revenue in this Division increased both sequentially and year-over-year.  Operating contributions grew 19% year-over-year.

 



 

·                  Several sizable wins, collectively approximating $175 million, many with offshore delivery participation, keyed the quarter’s Commercial Division wins.

 

European Division

 

·                  Continued headcount growth, broad demand, and the weaker US dollar all contributed to a solid quarter.  Revenue increased 40% quarter-over-quarter, 22% of which was organic.  Operating contribution increased 78% at the EBITA line.

 

·                  Improved results in most areas of our European operations, provided balanced growth in operating contributions and gained the highest Divisional revenue quarter in its history.

 

State & Local Government Division

 

·                  Significant receivable collections ($9.9 million) on aged City of New Orleans receivables contributed to the quarter’s strong cash flow.

 

·                  Reduction in lower margin subcontractors offset by additional consultants at better margins will help gross margins in the second quarter.

 

Federal Government Division

 

·                  Critical first time audit approval of our Federal accounting system in mid-March opens the path to more “prime” bidding by CIBER.

 

·                  Recompete wins in the quarter helped stabilize the base of operations for 2008.

 

CIBER Enterprise Solutions Division (CES) (US ERP)

 

·                  Wins totaling $27 million in the Oracle Practice alone in the quarter included the City & County of San Francisco, the University of Wisconsin and two universities.

 

·                  The large Pennsylvania Turnpike SAP project remains on schedule for delivery later this year.

 

·                  We continued to invest in our domestic SAP project delivery procedures, which held back operating contributions in this Division.

 

Eastern Asia-Pacific Operations

 

·                  New work in various verticals commenced in India in the March 2008 quarter.

 

·                  Australia gained two SAP wins in the retail sector, both with VAR license participation.

 

Pipeline and Wins Data

 

CIBER’s pipeline (US only) at March 31, 2008 was approximately $3.3 billion, a $0.4 billion (14%) increase from year-end 2007.  Wins (including Europe) were approximately $370 million for the quarter, a solid 1.25:1 book-to-bill ratio.

 

Balance Sheet Highlights (March 31, 2008)

 

·                  Working capital was flat with December 2007, at $174.8 million.

 

·                  DSOs on services, aided by New Orleans/FEMA collections, improved 2 days sequentially to 70 days.

 

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·                  Treasury stock purchases were 800,000 shares at $5.08 per share.  A new authorization to buy up to $10 million in shares was announced in February.

 

·                  The Company purchased $61 million of its convertible debentures in the quarter: at March 31st CIBER owned $84 million of the $175 million debentures, the balance of which is putable to the Company in December 2008.

 

2Q08 and 2008 Outlook

 

·                  Second Quarter 2008

 

CIBER believes the second quarter of 2008 will achieve revenue of $290-300 million and GAAP EPS of $0.13-0.15 per share.

 

·                  Fiscal 2008

 

The Company is increasing its fiscal 2008 revenue guidance to $1.150 and $1.175 billion (6-9% greater than 2007) and increasing its annual GAAP EPS at $0.54-0.57 (15-21% greater than 2007) per share.

 

Conference Call and Webcast

 

A webcast to discuss the company’s financial results and outlook will be held at 11:00 a.m. ET on Thursday, April 24, 2008 and may be heard live by visiting the Investor Relations portion of the company website at www.ciber.com/cbr/.  To participate in the call, dial 800-218-9073 within the United States, and 303-262-2137 internationally, using the conference ID number 11111653.  A replay of the conference call will be available through May 24, 2008 by dialing 800-405-2236 within the United States, and 303-590-3000 internationally, using the ID number 11111653.  The replay will also be available on CIBER’s website.

 

About CIBER, Inc.

 

CIBER, Inc. (NYSE: CBR) is a pure-play international system 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 60 U.S. offices, 25 European offices and seven offices in Asia/Pacific.  Operating in 18 countries, with more than 8,000 employees and annual revenue over $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, ALWAYS ABLE.  www.ciber.com.  CIBER and the CIBER logo are trademarks or registered trademarks of CIBER, Inc.  Copyright© 2008.

 

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

 

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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.

 

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CIBER, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

In thousands, except per share data

 

2007

 

2008

 

Consulting services

 

$

244,958

 

$

281,163

 

Other revenue

 

14,227

 

13,301

 

Total revenue

 

259,185

 

294,464

 

 

 

 

 

 

 

Cost of consulting services

 

179,878

 

205,120

 

Cost of other revenue

 

9,279

 

8,379

 

Selling, general and administrative expenses

 

55,980

 

64,491

 

Amortization of intangible assets

 

1,391

 

1,571

 

Operating income

 

12,657

 

14,903

 

Other expense, net

 

2,153

 

3,137

 

Income before income taxes

 

10,504

 

11,766

 

Income tax expense

 

3,939

 

4,589

 

Net income

 

$

6,565

 

$

7,177

 

 

 

 

 

 

 

Earnings per share – diluted

 

$

0.11

 

$

0.12

 

 

 

 

 

 

 

Weighted average shares – diluted

 

62,073

 

60,322

 

 

For the three months ended March 31, 2007 and 2008, respectively, earnings per share – basic were $0.11 and $0.12 and weighted average shares – basic were 61,520 and 60,263.

 

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CIBER, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

 

In thousands

 

December 31,
2007

 

March 31,
2008

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

31,717

 

$

38,536

 

Accounts receivable, net

 

269,070

 

264,306

 

Prepaid expenses and other current assets

 

24,032

 

24,349

 

Deferred income taxes

 

9,384

 

11,417

 

Total current assets

 

334,203

 

338,608

 

 

 

 

 

 

 

Property and equipment, net

 

27,297

 

27,647

 

Intangible assets, net

 

475,677

 

480,939

 

Other assets

 

11,936

 

11,640

 

Total assets

 

$

849,113

 

$

858,834

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

35,538

 

$

33,674

 

Accrued compensation and related liabilities

 

54,837

 

58,901

 

Current portion of long-term bank debt

 

9,108

 

3,355

 

Other accrued expenses and liabilities

 

53,493

 

62,396

 

Income taxes payable

 

5,447

 

5,451

 

Total current liabilities

 

158,423

 

163,777

 

 

 

 

 

 

 

Long-term bank debt

 

49,810

 

101,458

 

Debentures

 

152,000

 

90,985

 

Deferred income taxes

 

31,857

 

34,345

 

Total liabilities

 

392,090

 

390,565

 

 

 

 

 

 

 

Minority interest

 

2,464

 

2,943

 

 

 

 

 

 

 

Shareholders’ equity

 

454,559

 

465,326

 

Total liabilities and shareholders’ equity

 

$

849,113

 

$

858,834

 

 

6



 

CIBER, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

Three Months Ended
March 31,

 

In thousands

 

2007

 

2008

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

Net income

 

$

6,565

 

$

7,177

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation

 

2,846

 

3,055

 

Amortization of intangible assets

 

1,391

 

1,571

 

Other, net

 

(19,519

)

13,171

 

Net cash provided by (used in) operating activities

 

(8,717

)

24,974

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

Acquisition, net of cash acquired

 

(1,365

)

(498

)

Purchases of property and equipment, net

 

(2,218

)

(2,971

)

Net cash used in investing activities

 

(3,583

)

(3,469

)

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

Employee stock purchases and options exercised

 

1,519

 

440

 

Purchases of treasury stock

 

(5,265

)

(4,067

)

Borrowings on long-term bank debt, net

 

3,503

 

45,658

 

Retirement of debentures

 

 

(58,979

)

Other

 

74

 

113

 

Net cash used in financing activities

 

(169

)

(16,835

)

 

 

 

 

 

 

Effect of foreign exchange rate changes on cash

 

(204

)

2,149

 

Net increase (decrease) in cash and cash equivalents

 

(12,673

)

6,819

 

Cash and cash equivalents, beginning of period

 

33,319

 

31,717

 

Cash and cash equivalents, end of period

 

$

20,646

 

$

38,536

 

 

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Selected Financial Information

Unaudited Reconciliation of Non-GAAP and Segment Financial Measures

 

I.                             Reconciliation of Revenue Growth Components

(Quarters Ended)

($ in Millions)

 

 

 

March 31,
2007

 

Organic

 

Acquired

 

Foreign
Exchange

 

Total

 

March 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

91.2

 

2.2

%

0.0

%

0.0

%

2.2

%

$

93.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

71.2

 

21.5

 

2.0

 

16.7

 

40.2

 

99.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State & Local Gov.

 

35.5

 

7.0

 

0.0

 

0.0

 

7.0

 

38.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Gov.

 

34.1

 

-6.2

 

0.0

 

0.0

 

-6.2

 

32.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US ERP (CES)

 

27.2

 

1.1

 

14.7

 

0.0

 

15.8

 

31.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

259.2

 

6.9

%

2.1

%

4.6

%

13.6

%

$

294.5

 

 

II.        Segment Operating Results Analysis

For the Quarters Ended March 31, 2007 and 2008

($ in millions)

 

 

 

Three Months Ended

 

 

 

March 31, 2007

 

March 31, 2008

 

 

 

 

 

% of

 

 

 

% of

 

 

 

Amount

 

Revenue

 

Amount

 

Revenue

 

Revenue By Divisions

 

 

 

 

 

 

 

 

 

Commercial*

 

$

91.2

 

35

%

$

93.2

 

31

%

Europe*

 

71.2

 

28

 

99.8

 

34

 

State & Local Gov.

 

35.5

 

14

 

38.0

 

13

 

Federal Gov.

 

34.1

 

13

 

32.0

 

11

 

US ERP (CES)

 

27.2

 

10

 

31.5

 

11

 

Total

 

$

259.2

 

100

%

$

294.5

 

100

%

 

   

 

 

 

% of

 

 

 

% of

 

 

 

 

 

Revenue

 

 

 

Revenue

 

Operating Income

 

 

 

 

 

 

 

 

 

Commercial*

 

$

7.9

 

9

%

$

9.4

 

10

%

Europe*

 

3.6

 

5

 

6.4

 

6

 

State & Local Gov.

 

3.6

 

10

 

3.2

 

8

 

Federal Gov.

 

2.6

 

8

 

1.4

 

4

 

US ERP (CES)

 

2.0

 

7

 

1.7

 

5

 

Corporate Expense

 

(5.6

)

(2

)

(5.6

)

(2

)

EBITA

 

$

14.1

 

5

%

$

16.5

 

6

%

Amortization Expense

 

(1.4

)

(—

)

(1.6

)

(1

)

Operating Income

 

$

12.7

 

5

%

$

14.9

 

5

%

 


*Commercial includes India’s results and domestic eliminations; Europe includes Eastern Asia/Pacific results.

 

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III.        EBITDA Reconciliation to Net Income

 

(Quarters Ended)

(000’s omitted)

 

 

 

March 31, 2007

 

March 31, 2008

 

 

 

 

 

 

 

Net Income

 

$

6,565

 

$

7,177

 

Income Tax

 

3,939

 

4,589

 

Pre-Tax Income

 

10,504

 

11,766

 

Other Expense, net

 

2,153

 

3,137

 

Operating Income

 

12,657

 

14,903

 

Share Based Comp.

 

655

 

769

 

Amortization

 

1,391

 

1,571

 

Depreciation

 

2,846

 

3,055

 

EBITDA

 

$

17,549

 

$

20,298

 

 

###

 

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