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 2005 FOURTH QUARTER AND YEAR RESULTS
Comments on 2006
GREENWOOD VILLAGE, Colorado – February 15, 2006 – Today CIBER, Inc. (NYSE: CBR) reported the fourth quarter and full-year results for 2005 consistent with the Company’s January 24, 2006 announcement.
Fourth Quarter and Year-End Results
Revenue for the December quarter was $238.1 million, one percent higher than revenues in the December 2004 quarter of $235.2 million, despite the disposal of IBM staffing business during 2005. Organic revenue growth was approximately three percent for the quarter and for the year. For the full-year 2005, revenue of $956.0 million was an all-time high for CIBER and an increase of 13 percent from calendar 2004 revenue of $843.0 million.
Net income for the fourth quarter was $3.6 million, which represented a $3.9 million decrease (52 percent) from the December 2004 quarter. For the 2005 year, net income of $24.7 million was a $5.0 million decrease (17 percent) from 2004’s net income of $29.7 million.
Sequentially revenues were up $0.7 million (less than one percent) over the third quarter of 2005, while net income was down $3.2 million (47 percent) from the third quarter of 2005.
For the December 2005 quarter, GAAP EPS of $0.06 per share was a decrease of $0.05 per share (45 percent) from EPS of $0.11 per share in the fourth quarter of 2004. For calendar 2005, GAAP EPS of $0.38 per share was a decrease of $0.07 per share (16 percent) from calendar 2004.
(MORE)
|
| Quarterly Data |
| Year-End Data |
| |||||||||||
|
| Year Ago |
| Last Qtr |
| Current Qtr |
| Year Ago |
| Current |
| |||||
(in millions, except per share data) |
| Dec 04 |
| Sept 05 |
| Dec 05 |
| 2004 |
| 2005 |
| |||||
Revenue |
| $ | 235.2 |
| $ | 237.4 |
| $ | 238.1 |
| $ | 843.0 |
| $ | 956.0 |
|
Net Income |
| $ | 7.5 |
| $ | 6.8 |
| $ | 3.6 |
| $ | 29.7 |
| $ | 24.7 |
|
GAAP EPS |
| $ | 0.11 |
| $ | 0.11 |
| $ | 0.06 |
| $ | 0.45 |
| $ | 0.38 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Free Cash Flow: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net Income |
| $ | 7.5 |
| $ | 6.8 |
| $ | 3.6 |
| $ | 29.7 |
| $ | 24.7 |
|
Depreciation |
| $ | 2.3 |
| $ | 2.8 |
| $ | 3.0 |
| $ | 10.0 |
| $ | 11.5 |
|
Amortization |
| $ | 1.4 |
| $ | 1.5 |
| $ | 1.5 |
| $ | 4.2 |
| $ | 6.0 |
|
Capital Expenditures |
| $ | (2.6 | ) | $ | (4.5 | ) | $ | (2.0 | ) | $ | (7.3 | ) | $ | (10.8 | ) |
Free Cash Flow |
| $ | 8.5 |
| $ | 6.5 |
| $ | 6.0 |
| $ | 36.6 |
| $ | 31.4 |
|
Other CF Items* |
| $ | 4.9 |
| $ | (4.6 | ) | $ | 2.5 |
| $ | (7.0 | ) | $ | (6.4 | ) |
Net FCF** |
| $ | 13.4 |
| $ | 1.9 |
| $ | 8.5 |
| $ | 29.6 |
| $ | 25.0 |
|
*“Other” CF Items, from the operating activities portion of the Statement of Cash Flows, vary with timing of receipts and payments and temporarily increase or decrease FCF.
**Net FCF is equal to net cash provided by operating activities from the Statement of Cash Flows, less Capital Expenditures.
Comments on the Fourth Quarter and 2005
“2005 overall was a disappointing year for CIBER. While revenue was up 13 percent, we had hoped for more. The resultant shortfall directly affected earnings, as did the two Danish fixed-price projects, execution and delivery issues in our Commercial and State & Local Government practices and certain other issues,” said Mac Slingerlend, President and Chief Executive Officer. “That said, there were many positives to 2005, including, a new Chief Operating Officer in September, the assimilation of Novasoft and Ascent (acquired in 2004), a growing U.S. ERP business as the year progressed, and our new delivery center in Bangalore, India, in July. We believe the material difficulties of 2005 are behind us and we anticipate that 2006 will rebound as the year unfolds to an upward path such as CIBER was on from 2001-2004.”
Fourth Quarter Accomplishments
• CIBER’s U.S. ERP business (CIBER Enterprise Solutions) had its best quarter of the year, both in services and hardware re-selling commissions, with revenues of $26.5 million and a net operating income margin of 13.4%.
• CIBER Europe contracted with Dyson, a leading international vacuum manufacturer, on a multi-million dollar SAP implementation.
• Substantial progress was made on winding up the two Danish projects, as both were successfully demonstrated to their respective clients in the fourth quarter. We anticipate both projects will be fully completed on or before April, 2006.
2
• The State & Local Government Practice successfully delivered its Wisconsin WIC (Women Infant Children) development and began recognizing deferred revenue.
• CIBER’s U.S. Custom Commercial Practice had multi-million dollar wins in the fourth quarter with Kraft, UniGroup and an international financial institution.
• CIBER Federal won an outsourcing contract with the U.S. Army Judge Advocate General and the Army Reserve Command.
Wins and Pipeline
The pipeline for U.S. operations (Europe excluded) was $1.9 billion in the fourth quarter, similar to the previous quarter total. Fourth quarter 2005 wins were $205 million, of which 41 deals were valued at $1 million or greater, totaling $100 million. The book-to-bill ratio for all of 2005 was 1:1.
Outlook for 2006
Based upon a bottoms-up business planning process annually, CIBER currently believes revenue for 2006 will be $960-980 million, an increase of 2-4 percent from the IBM sale adjusted revenue for 2005, and GAAP EPS will be $0.42-0.46 per share, an increase of 10-20 percent from 2005 results, with the majority of the improvement coming in the second through fourth quarters of 2006. For the first quarter of 2006 we are forecasting revenue of $232-237 million with GAAP EPS of $0.07-0.09 per share. These estimates include the impact of our January 1, 2006 adoption of the Financial Accounting Standard Board’s Statement 123R requiring the expensing of equity-based compensation.
Conference Call
On February 16, 2006 CIBER management will conduct a conference call at 11:00am (Eastern) to discuss operating performance for the period. To participate in the call, dial (877) 356-5579 within the United States and (706) 679-3419 internationally, and provide the confirmation code 5094185.
A replay of the conference call will be available through March 3, 2006 by dialing (800) 642-1687, and providing the confirmation code 5094185. The conference call and replay will also be webcast on CIBER’s web site at www.ciber.com/cbr/.
About CIBER
CIBER, Inc. (NYSE: CBR) is a pure-play international system integration consultancy with superior value-priced services for both private and government sector clients. CIBER’s global delivery services are offered 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 headquarted in Greenwood Village, Colo., the company now serves client businesses from over 60 U.S. offices, 20 European offices and four offices in Asia. Operating in 18 countries, with annualized revenue run rate of approximately $950 million and approximately 8,000 employees, CIBER’s and its IT specialists continuously build and upgrade clients’ systems to
3
“competitive advantage status.” CIBER is included in the Russell 2000 Index and the S&P Small Cap 600 Index. CIBER, ALWAYS ABLE.
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 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. CIBER and the CIBER logo are trademarks or registered trademarks of CIBER, Inc. Copyright© 2005. All rights reserved.
4
CIBER, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
|
| Three Months Ended |
| Year Ended |
| ||||||||
|
| December 31, |
| December 31, |
| ||||||||
In thousands, except per share data |
| 2004 |
| 2005 |
| 2004 |
| 2005 |
| ||||
Consulting services |
| $ | 226,043 |
| $ | 225,785 |
| $ | 809,162 |
| $ | 917,443 |
|
Other revenues |
| 9,194 |
| 12,319 |
| 33,859 |
| 38,566 |
| ||||
Total revenues |
| 235,237 |
| 238,104 |
| 843,021 |
| 956,009 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cost of consulting services |
| 167,302 |
| 170,157 |
| 589,397 |
| 676,575 |
| ||||
Cost of other revenues |
| 5,167 |
| 7,148 |
| 21,450 |
| 22,257 |
| ||||
Selling, general and administrative expenses |
| 48,089 |
| 51,530 |
| 176,692 |
| 204,563 |
| ||||
Amortization of intangible assets |
| 1,375 |
| 1,445 |
| 4,214 |
| 5,958 |
| ||||
Operating income |
| 13,304 |
| 7,824 |
| 51,268 |
| 46,656 |
| ||||
Other expense, net |
| 1,895 |
| 2,595 |
| 3,873 |
| 8,051 |
| ||||
Income before income taxes |
| 11,409 |
| 5,229 |
| 47,395 |
| 38,605 |
| ||||
Income tax expense |
| 3,958 |
| 1,672 |
| 17,694 |
| 13,898 |
| ||||
Net income |
| $ | 7,451 |
| $ | 3,557 |
| $ | 29,701 |
| $ | 24,707 |
|
|
|
|
|
|
|
|
|
|
| ||||
Earnings per share – diluted |
| $ | 0.11 |
| $ | 0.06 |
| $ | 0.45 |
| $ | 0.38 |
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted average shares – diluted |
| 76,573 |
| 62,850 |
| 74,642 |
| 68,296 |
|
For the three months ended December 31, 2004 and 2005, respectively, earnings per share – basic were $0.12 and $0.06 and weighted average shares – basic were 62,540 and 62,364.
For the year ended December 31, 2004 and 2005, respectively, earnings per share – basic were $0.49 and $0.40 and weighted average shares – basic were 60,701 and 62,536.
5
CIBER, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
In thousands |
| December 31, |
| December 31, |
| ||
|
|
|
|
|
| ||
Assets |
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 44,446 |
| $ | 40,661 |
|
Accounts receivable, net |
| 206,108 |
| 212,110 |
| ||
Prepaid expenses and other current assets |
| 18,163 |
| 17,851 |
| ||
Income taxes refundable |
| 743 |
| 267 |
| ||
Deferred income taxes |
| 5,421 |
| 4,603 |
| ||
Total current assets |
| 274,881 |
| 275,492 |
| ||
|
|
|
|
|
| ||
Property and equipment, net |
| 26,745 |
| 25,388 |
| ||
Intangible assets, net |
| 449,645 |
| 434,411 |
| ||
Other assets |
| 7,401 |
| 9,276 |
| ||
Total assets |
| $ | 758,672 |
| $ | 744,567 |
|
|
|
|
|
|
| ||
Liabilities and Shareholders’ Equity |
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
Accounts payable |
| $ | 28,200 |
| $ | 31,995 |
|
Accrued compensation and related liabilities |
| 46,491 |
| 44,371 |
| ||
Other accrued expenses and liabilities |
| 50,405 |
| 47,857 |
| ||
Income taxes payable |
| 10,914 |
| 3,887 |
| ||
Total current liabilities |
| 136,010 |
| 128,110 |
| ||
|
|
|
|
|
| ||
Long-term line of credit – bank |
| 48,704 |
| 42,638 |
| ||
Long-term debentures |
| 175,000 |
| 175,000 |
| ||
Other long-term liabilities |
| 17,418 |
| 19,282 |
| ||
Total liabilities |
| 377,132 |
| 365,030 |
| ||
|
|
|
|
|
| ||
Minority interest |
| 3,877 |
| 2,930 |
| ||
|
|
|
|
|
| ||
Shareholders’ equity |
| 377,663 |
| 376,607 |
| ||
Total liabilities and shareholders’ equity |
| $ | 758,672 |
| $ | 744,567 |
|
6
CIBER, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
| Year Ended |
| ||||
In thousands |
| 2004 |
| 2005 |
| ||
|
|
|
|
|
| ||
Operating activities: |
|
|
|
|
| ||
Net income |
| $ | 29,701 |
| $ | 24,707 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
| ||
Depreciation |
| 10,006 |
| 11,486 |
| ||
Amortization of intangible assets |
| 4,214 |
| 5,958 |
| ||
Deferred income tax expense |
| 10,155 |
| 6,780 |
| ||
Provision for doubtful receivables |
| 1,208 |
| 834 |
| ||
Other, net |
| (27 | ) | 2,280 |
| ||
Changes in operating assets and liabilities, net of the effect of acquisitions: |
|
|
|
|
| ||
Accounts receivable |
| (15,948 | ) | (11,412 | ) | ||
Other current and long-term assets |
| 1,347 |
| (1,035 | ) | ||
Accounts payable |
| 4,685 |
| 5,076 |
| ||
Accrued compensation and related liabilities |
| (12,145 | ) | (438 | ) | ||
Other accrued expenses and liabilities |
| (6,185 | ) | (2,859 | ) | ||
Income taxes payable/refundable |
| 9,914 |
| (5,591 | ) | ||
Net cash provided by operating activities |
| 36,925 |
| 35,786 |
| ||
|
|
|
|
|
| ||
Investing activities: |
|
|
|
|
| ||
Acquisitions, net of cash acquired |
| (120,328 | ) | (9,641 | ) | ||
Sale of IBM staffing operation |
| — |
| 1,000 |
| ||
Capitalized software development costs |
| — |
| (2,514 | ) | ||
Purchases of property and equipment, net |
| (7,357 | ) | (10,757 | ) | ||
Other |
| 300 |
| (421 | ) | ||
Net cash used in investing activities |
| (127,385 | ) | (22,333 | ) | ||
|
|
|
|
|
| ||
Financing activities: |
|
|
|
|
| ||
Employee stock purchases and options exercised |
| 8,629 |
| 5,701 |
| ||
Purchases of treasury stock |
| (11,181 | ) | (10,497 | ) | ||
Repayment of debt of acquired companies |
| (52,628 | ) | — |
| ||
Borrowings (payments) on long-term bank line of credit (net) |
| 48,704 |
| (6,066 | ) | ||
Minority shareholder capital contribution |
| 294 |
| 280 |
| ||
Borrowings (payments) on term note (net) |
| 4,200 |
| (2,200 | ) | ||
Other |
| (88 | ) | — |
| ||
Net cash used in financing activities |
| (2,070 | ) | (12,782 | ) | ||
Effect of foreign exchange rate changes on cash |
| 4,439 |
| (4,456 | ) | ||
Net decrease in cash and cash equivalents |
| (88,091 | ) | (3,785 | ) | ||
Cash and cash equivalents, beginning of period |
| 132,537 |
| 44,446 |
| ||
Cash and cash equivalents, end of period |
| $ | 44,446 |
| $ | 40,661 |
|
7
Supplemental Information:
CIBER, Inc.
Operating Results Analysis
For the Quarter and Year Ended December 31, 2005
(unaudited)
($ In millions)
|
| Three Months Ended |
| Year Ended |
| ||||||||||||||||
|
| December 31, 2004 |
| December 31, 2005 |
| December 31, 2004 |
| December 31, 2005 |
| ||||||||||||
By Divisions |
| Amount |
| % of |
| Amount |
| % of |
| Amount |
| % of |
| Amount |
| % of |
| ||||
U.S. Custom |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Commercial* |
| $ | 89.4 |
| 37 | % | $ | 88.3 |
| 37 | % | $ | 353.5 |
| 40 | % | $ | 355.5 |
| 37 | % |
Federal |
| 41.1 |
| 19 |
| 36.4 |
| 15 |
| 147.7 |
| 19 |
| 159.8 |
| 17 |
| ||||
State & Local |
| 29.2 |
| 12 |
| 31.9 |
| 13 |
| 115.5 |
| 14 |
| 125.9 |
| 13 |
| ||||
U.S. Package |
| 21.9 |
| 9 |
| 26.5 |
| 11 |
| 88.0 |
| 10 |
| 102.9 |
| 11 |
| ||||
Europe* |
| 53.9 |
| 23 |
| 55.8 |
| 24 |
| 140.8 |
| 17 |
| 214.5 |
| 22 |
| ||||
Corporate Elims. |
| (0.3 | ) | — |
| (0.8 | ) | — |
| (2.5 | ) | — |
| (2.6 | ) | — |
| ||||
Total |
| $ | 235.2 |
| 100 | % | $ | 238.1 |
| 100 | % | $ | 843.0 |
| 100 | % | $ | 956.0 |
| 100 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating Income |
|
|
| % of Div. |
|
|
| % of Div. |
|
|
| % of Div. |
|
|
| % of Div. |
| ||||
U.S. Custom |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Commercial* |
| $ | 7.1 |
| 8 | % | $ | 4.3 |
| 5 | % | $ | 29.3 |
| 8 | % | $ | 25.5 |
| 7 | % |
Federal |
| 4.7 |
| 10 |
| 3.8 |
| 11 |
| 19.6 |
| 13 |
| 20.3 |
| 13 |
| ||||
State & Local |
| 1.5 |
| 5 |
| 0.1 |
| 0 |
| 8.8 |
| 8 |
| 5.6 |
| 4 |
| ||||
U.S. Package |
| 2.9 |
| 13 |
| 3.6 |
| 14 |
| 8.0 |
| 9 |
| 11.4 |
| 11 |
| ||||
Europe* |
| 2.9 |
| 5 |
| 2.3 |
| 4 |
| 9.1 |
| 6 |
| 8.5 |
| 4 |
| ||||
Corporate |
| (4.4 | ) | (2 | ) | (4.8 | ) | (2 | ) | (19.3 | ) | (2 | ) | (18.7 | ) | (2 | ) | ||||
EBITA |
| 14.7 |
| 6 |
| 9.3 |
| 4 |
| 55.5 |
| 7 |
| 52.6 |
| 6 |
| ||||
Amortization Expense |
| (1.4 | ) | — |
| (1.5 | ) | (1 | ) | (4.2 | ) | (1 | ) | (5.9 | ) | (1 | ) | ||||
Operating Income |
| $ | 13.3 |
| 6 | % | $ | 7.8 |
| 3 | % | $ | 51.3 |
| 6 | % | $ | 46.7 |
| 5 | % |
*U.S. includes India’s results; Europe includes Eastern Asia
Average Headcounts: (~) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Billable |
|
|
| 7,150 |
|
|
| 7,100 |
|
|
| 6,450 |
|
|
| 7,050 |
| ||||
Total |
|
|
| 8,000 |
|
|
| 8,100 |
|
|
| 7,300 |
|
|
| 8,050 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Utilization (~) |
|
|
| 86 | % |
|
| 84 | % |
|
| 88 | % |
|
| 87 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Avg. Bill Rates (~) |
|
|
| $ | 75.00 |
|
|
| $ | 78.00 |
|
|
| $ | 73.00 |
|
|
| $ | 76.00 |
|
###
8