Manhattan, PRGX report 1Q 2014 results
by CBJ Staff
June 02, 2014 12:05 AM | 774 views | 0 0 comments | 8 8 recommendations | email to a friend | print

Cumberland-based Manhattan Associates Inc. and PRGX Global Inc. have reported their first quarter 2014 financial results.

Manhattan Associates

Manhattan reported record non-GAAP adjusted diluted earnings per share for the first quarter ending March 31, 2014 of 26 cents, compared to 19 cents in Q1 2013 on license revenue of $17.1 million and record total revenue of $113.6 million. GAAP diluted earnings per share for Q1 2014 was 24 cents compared to 17 cents in Q1 2013.

Consolidated total revenue was $113.6 million in Q1 2014, compared to $96.6 million in Q1 2013. License revenue was $17.1 million in Q1 2014, compared to $14.2 million in Q1 2013. Adjusted operating income, a non-GAAP measure, was $32.3 million in Q1 2014, compared to $21.6 million in Q1 2013. GAAP operating income was $30 million in Q1 2014 compared to $19.7 million in Q1 2013.

Cash flow from operations was $19.1 million in Q1 2014, compared to $20.1 million in Q1 2013. Days Sales Outstanding was 53 days at March 31, 2014, compared to 61 days at Dec. 31, 2013. Cash and investments at March 31, 2014 was $125.9 million, compared to $133 million at Dec. 31, 2013.

During the three months ended March 31, 2014, the company repurchased 694,547 shares of Manhattan Associates common stock under the share repurchase program authorized by the Board of Directors, for a total investment of $25.5 million. In April 2014, the Board of Directors approved raising the company’s share repurchase authority to an aggregate of $50 million of the company’s outstanding common stock.

PRGX Global

PRGX, the world’s leading provider of accounts payable recovery audit services, announced its unaudited financial results for the first quarter ending March 31, 2014.

Consolidated revenue for the first quarter of 2014 was $37.9 million, compared to $45.1 million in the same prior year period, a decrease of 16 percent. After adjusting for changes in foreign exchange rates, consolidated revenue for the first quarter of 2014 decreased 15.3 percent, compared to the same period in 2013. Beginning with the first quarter of 2014, the former New Services segment is now being reported as two segments — Adjacent Services, which were formerly referred to as Profit Optimization services and Healthcare Claims Recovery Audit services.

Recovery Audit Services-Americas revenue for the first quarter of 2014 was $24.8 million, compared to $26.2 million in the same period in the prior year, a decrease of 5.5 percent. On a constant dollar basis,

adjusted for changes in foreign exchange rates, Recovery Audit Services-Americas revenue decreased 3.3 percent, compared to 2013. The decrease in revenue was primarily attributable to the delay of several large claims and a delayed audit start in a large legacy client. Recovery Audit Services-Europe/Asia-Pacific revenue for the first quarter of 2014 was $9.7 million, compared to $11.0 million in the same period in the prior year, a decrease of 11.9 percent. On a constant dollar basis, adjusted for changes in foreign exchange rates, Recovery Audit Services-Europe/Asia-Pacific revenue decreased 14.6 percent compared to 2013. Similar to the Americas, the revenue decline was primarily attributable to claim delays at a significant client.

Adjacent Services revenue for the first quarter of 2014 was $2.3 million, compared to $3.9 million in the same period in the prior year, a decrease of 42.1 percent. The decrease in revenue was due to a weak backlog coming into 2014 compared to 2013.

Healthcare Claims Recovery Audit Services revenue for the first quarter of 2014 was $1.1 million, compared to $3.9 million in the same period in the prior year, a decrease of 71.3 percent. Healthcare Claims Recovery Audit Services consist primarily of services provided under subcontracts related to the Medicare RAC program. The decrease in revenue was primarily attributable to the reduced scope of the current Medicare RAC program.

Adjusted EBITDA for the first quarter of 2014 was $500,000 compared to $3.6 million of Adjusted EBITDA for the same period in 2013, a decline of $3.1 million. The reduction in Adjusted EBITDA included a decline in Healthcare Claims Recovery Audit Services Adjusted EBITDA of $1.3 million and a decline in Adjacent Services Adjusted EBITDA of $1.2 million.

Net loss for the first quarter of 2014 was $3.7 million, or 12 cents per basic and diluted share, compared to a net loss of $500,000, or 2 cents per basic and diluted share, for the same period in 2013. Net cash provided by operating activities for the first quarter of 2014 was $2.9 million, compared to $800,000 in the first quarter of 2013.

At March 31, 2014, the company had unrestricted cash and cash equivalents of $45.7 million, no borrowings against its revolving credit facility and no bank debt outstanding.



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