PRGX Global (PRGX) 8-K Results of Operations and Financial Condition

Exhibit 99.1

PRGX Global, Inc. 2009 Unaudited Selected Financial Information

     Management evaluates the performance of its operating segments based upon revenues and measures of profit or loss it refers to as EBITDA and adjusted EBITDA. Adjusted EBITDA is earnings from continuing operations before interest, taxes, depreciation and amortization (“EBITDA”) as adjusted for unusual and other significant items that management views as distorting the operating results of the various segments from period to period. Adjustments include restructuring charges, stock-based compensation, bargain purchase gains, intangible asset impairment charges, litigation settlements, severance charges and foreign currency gains and losses on intercompany balances viewed by management as individually or collectively significant. The Company does not have any inter-segment revenues. Segment information by quarter for 2009 is presented below (in thousands):

	Recovery			Recovery Audit
	Audit			Services —
	Services —			Europe/Asia —			New			Corporate
	Americas			Pacific			Services			Support			Total
Three Months Ended March 31, 2009
Revenues	$	28,141		$	10,008		$	1,103		$	—		$	39,252
EBITDA	$	9,252		$	(239	)	$	(812	)	$	(3,794	)	$	4,407
Foreign currency (gains) losses on intercompany balances		(1	)		606			—			—			605
Stock-based compensation		—			—			—			15			15
Adjusted EBITDA	$	9,251		$	367		$	(812	)	$	(3,779	)	$	5,027
Three Months Ended June 30, 2009
Revenues	$	32,070		$	11,951		$	1,450		$	—		$	45,471
EBITDA	$	11,641		$	2,439		$	(625	)	$	(5,668	)	$	7,787
Foreign currency (gains) losses on intercompany balances		(320	)		(1,359	)		—			—			(1,679	)
Litigation settlement		—			—			—			650			650
Stock-based compensation		—			—			—			989			989
Adjusted EBITDA	$	11,321		$	1,080		$	(625	)	$	(4,029	)	$	7,747

	Recovery			Recovery Audit
	Audit			Services —
	Services —			Europe/Asia —			New			Corporate
	Americas			Pacific			Services			Support			Total
Three Months Ended September 30, 2009
Revenues	$	31,794		$	12,236		$	1,291		$	—		$	45,321
EBITDA	$	10,916		$	4,581		$	(1,131	)	$	(4,998	)	$	9,368
Foreign currency (gains) losses on intercompany balances		(2	)		(676	)		—			—			(678	)
Stock-based compensation		—			—			—			1,496			1,496
Gain on bargain purchase		—			(2,388	)		—			—			(2,388	)
Adjusted EBITDA	$	10,914		$	1,517		$	(1,131	)	$	(3,502	)	$	7,798
Three Months Ended December 31, 2009
Revenues	$	29,556		$	18,294		$	1,689		$	—		$	49,539
EBITDA	$	8,901		$	3,372		$	(1,019	)	$	(5,296	)	$	5,958
Foreign currency (gains) losses on intercompany balances		(31	)		188			—			—			157
Stock-based compensation		—			—			—			845			845
Adjusted EBITDA	$	8,870		$	3,560		$	(1,019	)	$	(4,451	)	$	6,960

     The following table reconciles net earnings to EBITDA and adjusted EBITDA for each of the four quarterly periods ended December 31, 2009 (in thousands). Certain reclassifications have been made to conform with classifications adopted in the fourth quarter of 2009.

	Three Months Ended
	March 31,		June 30,			September 30,			December 31,
	2009		2009			2009			2009
Net earnings	$	1,873	$	5,025		$	6,401		$	2,028
Income taxes		544		618			605			1,261
Interest, net		699		727			728			871
Depreciation and amortization		1,291		1,417			1,634			1,798
EBITDA		4,407		7,787			9,368			5,958
Foreign currency (gains) losses on intercompany balances		605		(1,679	)		(678	)		157
Litigation settlement		—		650			—			—
Stock-based compensation		15		989			1,496			845
Gain on bargain purchase		—		—			(2,388	)		—
Adjusted EBITDA	$	5,027	$	7,747		$	7,798		$	6,960

     EBITDA and adjusted EBITDA are both “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 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, 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 EBITDA and adjusted EBITDA, you should be aware that, as described above, the adjustments may vary from period to period and 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.

     The following tables set forth 2009 quarterly and annual operating results by operating segments. Certain reclassifications have been made to conform with classifications adopted in the fourth quarter of 2009.

	Recovery		Recovery Audit
	Audit		Services —
	Services —		Europe/Asia —			New			Corporate
	Americas		Pacific			Services			Support			Total
Three Months Ended:
March 31, 2009
Revenues	$	28,141	$	10,008		$	1,103		$	—		$	39,252
Cost of revenues		16,756		8,002			1,655			—			26,413
Gross margin		11,385		2,006			(552	)		—			12,839
Selling, general and administrative expenses		3,311		2,310			308			3,794			9,723
Operating income (loss)	$	8,074	$	(304	)	$	(860	)	$	(3,794	)	$	3,116
June 30, 2009
Revenues	$	32,070	$	11,951		$	1,450		$	—		$	45,471
Cost of revenues		17,070		9,375			1,883			—			28,328
Gross margin		15,000		2,576			(433	)		—			17,143
Selling, general and administrative expenses		4,538		204			363			5,668			10,773
Operating income (loss)	$	10,462	$	2,372		$	(796	)	$	(5,668	)	$	6,370
September 30, 2009
Revenues	$	31,794	$	12,236		$	1,291		$	—		$	45,321
Cost of revenues		17,031		9,639			2,304			—			28,974
Gross margin		14,763		2,597			(1,013	)		—			16,347
Selling, general and administrative expenses		5,028		754			221			4,998			11,001
Operating income (loss)	$	9,735	$	1,843		$	(1,234	)	$	(4,998	)	$	5,346
December 31, 2009
Revenues	$	29,556	$	18,294		$	1,689		$	—		$	49,539
Cost of revenues		17,145		13,301			2,557			—			33,003
Gross margin		12,411		4,993			(868	)		—			16,536
Selling, general and administrative expenses		4,770		2,051			259			5,296			12,376
Operating income (loss)	$	7,641	$	2,942		$	(1,127	)	$	(5,296	)	$	4,160
Twelve Months Ended December 31, 2009:
Revenues	$	121,561	$	52,489		$	5,533		$	—		$	179,583
Cost of revenues		68,002		40,317			8,399			—			116,718
Gross margin		53,559		12,172			(2,866	)		—			62,865
Selling, general and administrative expenses		17,647		5,319			1,151			19,756			43,873
Operating income (loss)	$	35,912	$	6,853		$	(4,017	)	$	(19,756	)	$	18,992