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 FOURTH QUARTER AND FISCAL 2006 RESULTS
Record Year for Revenue, EPS Increased
CIBER Europe Gains Led Solid Fourth Quarter
GREENWOOD VILLAGE, Colorado – February 13, 2007 – Today CIBER, Inc. (NYSE: CBR) reported results for the fourth quarter of 2006 and fiscal year ended December 31st.
Revenue for the final quarter and year of $257.5 million and $995.8 million, respectively, were both CIBER records and exceeded the range CIBER targeted for the quarter. GAAP EPS was $0.12 per share for the quarter and $0.40 per share for the year, both in line with previous indications.
“CIBER Europe led a strong fourth quarter and improved year for CIBER overall. European total revenue increased $29.8 million (14 percent) for all of 2006, to $244.3 million, fueled by headcount growth of 20 percent. Europe’s fourth quarter was the strongest of the year and 27 percent of CIBER’s total; we are confident that their contributions will continue for fiscal 2007 as a whole,” said Mac Slingerlend, President and Chief Executive Officer of CIBER.
Overall, CIBER’s organic revenue increased six percent from 2005, led by double digit improvement in CIBER’s Europe, State & Local Government and U.S. ERP (CIBER Enterprise Solutions) Practices. The U.S. Commercial Practice increased revenue five percent, while U.S. Federal Government revenues decreased 12 percent.
“2006 was a year of progress for CIBER. We were able to deliver the two Danish projects as expected in the fourth quarter, and both projects have been added to at standard terms by the clients. We were also able, in 2006, to close out and otherwise improve several projects that constrained gross profit, particularly in our U.S. Oracle and SAP Practices. We are confident 2007 will show increases in several metrics and full year results.”
Financial Review
Fourth Quarter 2006 Compared to Fourth Quarter 2005
Revenue increased eight percent to $257.5 million, a CIBER record, from $238.1 million in 2005’s fourth quarter. In large measure, sustained demand in our European and State & Local Government Practices led to this $19.4 million increase.
Gross profit margins expanded to 26.5 percent from 25.5 percent, with the State & Local Government Practice representing the majority of this fourth quarter comparison increase.
SG&A expenses decreased as a percent of revenue from 21.6 percent to 21.2 percent, mainly due to cost containment programs in our State & Local Government Practice.
Operating income margins increased over 40 percent from 3.3 percent to 4.7 percent, with CIBER Europe and the State & Local Government Practice providing the biggest quarter-over-quarter contribution.
The income tax rate was 31 percent for 2006’s fourth quarter, versus 32 percent for the last quarter of 2005.
Net income for the quarter of $7.5 million more than doubled from 2005’s fourth quarter of $3.6 million. CIBER’s European, U.S. Commercial and State & Local Practices all had better fourth quarters than a year ago.
GAAP EPS doubled on a fourth quarter year-over-year basis to $0.12 per share.
Fiscal Results 2006 versus 2005
Revenue increased six percent organically to $995.8 million. This approximate $52 million increase was led by CIBER Europe ($26 million), U.S. Commercial Practice ($18 million), the State & Local Practice ($15 million) and CIBER Enterprise Solutions Practice ($12 million), more than offsetting the Federal Government Practice decrease ($19 million).
Gross profit margins fell 20 basis points compared to 2005, primarily due to lower Federal Government Practice and CIBER Enterprise Solutions Practice implementation services margins, which were materially offset by better margins in the Commercial, CIBER Europe and State & Local Government Practices.
SG&A expense, as a percent of revenue, increased 20 basis points on a year-over-year basis, primarily due to a mix shift to greater European contributions.
Despite the fourth quarter results that were 140 basis points better than the exit rate of 2005’s fourth quarter, operating income margins for the year compressed 40 basis points as a result of lower margins in the U.S. Federal and CIBER Enterprise Solutions Practices.
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The income tax rate for 2006 was 35 percent, compared to 36 percent for 2005.
GAAP EPS increased to $0.40 per share from $0.38 per share for 2005.
Foreign Exchange Affects
For the December quarter, the affect of foreign exchange was to increase revenue by approximately $6.1 million and operating income by approximately $0.3 million, in comparison to the fourth quarter of 2005. For 2006 as a whole, foreign exchange increased revenue by approximately $2.1 million and operating income by approximately $0.1 million.
Contract Wins and Pipeline
Contract wins (including Europe) were seasonally lower at approximately $200 million for the December 2006 quarter; wins were approximately $1.13 billion for calendar 2006, a 1.13:1 book-to-bill ratio. The U.S. pipeline of opportunities increased approximately $100 million from September 2006 to $2.7 billion at year-end.
Treasury Stock Activity
During the fourth quarter, CIBER purchased 200,000 shares into Treasury at a cost of $1.4 million, or $6.92 per share. For Calendar 2006, CIBER acquired 1.25 million shares at a cost of $8.1 million, or $6.49 per share.
Balance Sheet at December 2006
· Cash was $33.3 million and working capital borrowings were $11.9 million.
· Services DSOs were 66 days.
· Shareholder equity was $416.1 million.
Outlook for 2007
For the calendar year, CIBER expects revenue to increase to between $1.015 billion and $1.035 billion, and GAAP EPS to increase to $0.45-0.51 per share.
For the March 2007 quarter, CIBER is expecting revenue and GAAP EPS to increase year-over-year to $250-255 million and $0.09-0.11 per share, respectively.
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 Tuesday, February 13, 2007, and may be heard live by visiting the Investors portion of the company website at www.ciber.com/cbr/. To participate in the call, dial (800) 218-0713 within the United States and (303) 262-2138 internationally. A replay of the conference call will be available through March 13, 2007 by dialing (800) 405-2236 within the United States and (303) 590-3000 internationally. The replay will also be available on CIBER’s website.
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About CIBER, Inc.
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 headquartered in Greenwood Village, Colo., the company now serves client businesses from over 60 U.S. offices, 20 European offices and five offices in Asia. Operating in 18 countries, with 8,250 employees and annual revenue of approximately $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
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© 2007.
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CIBER, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
| | Three Months Ended | | Year Ended | |
| | December 31, | | December 31, | |
In thousands, except per share data | | 2005 | | 2006 | | 2005 | | 2006 | |
Consulting services | | $ | 225,785 | | $ | 247,360 | | $ | 917,443 | | $ | 953,541 | |
Other revenue | | 12,319 | | 10,148 | | 38,566 | | 42,296 | |
Total revenue | | 238,104 | | 257,508 | | 956,009 | | 995,837 | |
| | | | | | | | | |
Cost of consulting services | | 170,157 | | 183,304 | | 676,575 | | 705,900 | |
Cost of other revenue | | 7,148 | | 6,063 | | 22,257 | | 23,858 | |
Selling, general and administrative expenses | | 51,530 | | 54,518 | | 204,563 | | 215,109 | |
Amortization of intangible assets | | 1,445 | | 1,400 | | 5,958 | | 5,930 | |
Operating income | | 7,824 | | 12,223 | | 46,656 | | 45,040 | |
Other expense, net | | 2,595 | | 1,412 | | 8,051 | | 6,934 | |
Income before income taxes | | 5,229 | | 10,811 | | 38,605 | | 38,106 | |
Income tax expense | | 1,672 | | 3,350 | | 13,898 | | 13,371 | |
Net income | | $ | 3,557 | | 7,461 | | $ | 24,707 | | $ | 24,735 | |
| | | | | | | | | |
Earnings per share – diluted | | $ | 0.06 | | $ | 0.12 | | $ | 0.38 | | $ | 0.40 | |
| | | | | | | | | |
Weighted average shares – diluted | | 62,850 | | 62,324 | | 68,296 | | 62,357 | |
For the three months ended December 31, 2005 and 2006, respectively, earnings per share – basic was $0.06 and $0.12 and weighted average shares – basic were 62,364 and 61,803.
For the year ended December 31, 2005 and 2006, respectively, earnings per share – basic was $0.40 and $0.40 and weighted average shares – basic were 62,536 and 61,925.
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CIBER, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
In thousands | | December 31,
2005 | | December 31,
2006 | |
| | | | | |
Assets | | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 40,661 | | $ | 33,319 | |
Accounts receivable, net | | 212,110 | | 226,055 | |
Prepaid expenses and other current assets | | 18,118 | | 21,020 | |
Deferred income taxes | | 4,603 | | 3,748 | |
Total current assets | | 275,492 | | 284,142 | |
| | | | | |
Property and equipment, net | | 25,388 | | 26,521 | |
Intangible assets, net | | 434,411 | | 453,106 | |
Other assets | | 9,276 | | 15,910 | |
Total assets | | $ | 744,567 | | $ | 779,679 | |
| | | | | |
Liabilities and Shareholders’ Equity | | | | | |
Current liabilities: | | | | | |
Accounts payable | | $ | 31,995 | | $ | 41,486 | |
Accrued compensation and related liabilities | | 44,371 | | 43,579 | |
Other accrued expenses and liabilities | | 47,857 | | 51,173 | |
Income taxes payable | | 3,887 | | 7,147 | |
Total current liabilities | | 128,110 | | 143,385 | |
| | | | | |
Long-term line of credit – bank | | 42,638 | | 11,949 | |
Long-term debentures | | 175,000 | | 175,000 | |
Other long-term liabilities | | 19,282 | | 31,975 | |
Total liabilities | | 365,030 | | 362,309 | |
| | | | | |
Minority interest | | 2,930 | | 1,248 | |
| | | | | |
Shareholders’ equity | | 376,607 | | 416,122 | |
Total liabilities and shareholders’ equity | | $ | 744,567 | | $ | 779,679 | |
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CIBER, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| | Year Ended
December 31, | |
In thousands | | 2005 | | 2006 | |
| | | | | |
Operating activities: | | | | | |
Net income | | $ | 24,707 | | $ | 24,735 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | |
Depreciation | | 11,486 | | 12,187 | |
Amortization of intangible assets | | 5,958 | | 5,930 | |
Other, net | | (6,365 | ) | 1,953 | |
Net cash provided by operating activities | | 35,786 | | 44,805 | |
| | | | | |
Investing activities: | | | | | |
Acquisitions, net of cash acquired | | (9,641 | ) | (9,854 | ) |
Purchases of property and equipment, net | | (10,757 | ) | (10,579 | ) |
Other | | (1,935 | ) | (598 | ) |
Net cash used in investing activities | | (22,333 | ) | (21,031 | ) |
| | | | | |
Financing activities: | | | | | |
Employee stock purchases and options exercised | | 5,701 | | 4,919 | |
Purchases of treasury stock | | (10,497 | ) | (8,115 | ) |
Payments on line of credit and term notes, net | | (8,266 | ) | (23,921 | ) |
Other, net | | 280 | | (5,874 | ) |
Net cash used in financing activities | | (12,782 | ) | (32,991 | ) |
Effect of foreign exchange rate changes on cash | | (4,456 | ) | 1,875 | |
Net decrease in cash and cash equivalents | | (3,785 | ) | (7,342 | ) |
Cash and cash equivalents, beginning of period | | 44,446 | | 40,661 | |
Cash and cash equivalents, end of period | | $ | 40,661 | | $ | 33,319 | |
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Supplemental Information:
CIBER, Inc.
Operating Results Analysis
For the Quarter and Year Ended December 31, 2006
(unaudited)
($ In millions)
| | Three Months Ended | | Year Ended | |
| | December 31, 2005 | | December 31, 2006 | | December 31, 2005 | | December 31, 2006 | |
| | | | % of | | | | % of | | | | % of | | | | % of | |
By Divisions | | Amount | | Revenue | | Amount | | Revenue | | Amount | | Revenue | | Amount | | Revenue | |
Revenue | | | | | | | | | | | | | | | | | |
Commercial* | | $ | 87.6 | | 37 | % | $ | 89.0 | | 34 | % | $ | 352.9 | | 37 | % | $ | 354.0 | | 35 | % |
State & Local | | 31.9 | | 13 | | 35.2 | | 14 | | 125.9 | | 13 | | 141.1 | | 14 | |
U.S. Package | | 26.5 | | 11 | | 27.6 | | 11 | | 102.9 | | 11 | | 115.1 | | 12 | |
Federal | | 36.3 | | 15 | | 35.5 | | 14 | | 159.8 | | 17 | | 141.3 | | 14 | |
Europe* | | 55.8 | | 24 | | 70.2 | | 27 | | 214.5 | | 22 | | 244.3 | | 25 | |
Total | | $ | 238.1 | | 100 | % | $ | 257.5 | | 100 | % | $ | 956.0 | | 100 | % | $ | 995.8 | | 100 | % |
| | | | % of
Div. | | | | % of
Div. | | | | % of
Div. | | | | % of
Div. | |
| | | | Revenue | | | | Revenue | | | | Revenue | | | | Revenue | |
Operating Income | | | | | | | | | | | | | | | | | |
Commercial* | | $ | 4.3 | | 5 | % | $ | 6.6 | | 7 | % | $ | 25.5 | | 7 | % | $ | 24.7 | | 7 | % |
State & Local | | 0.1 | | 0 | | 2.7 | | 8 | | 5.6 | | 4 | | 11.6 | | 8 | |
U.S. Package | | 3.6 | | 14 | | 1.2 | | 4 | | 11.4 | | 11 | | 8.3 | | 7 | |
Federal | | 3.8 | | 11 | | 3.6 | | 10 | | 20.3 | | 13 | | 14.0 | | 10 | |
Europe* | | 2.3 | | 4 | | 4.3 | | 6 | | 8.5 | | 4 | | 13.1 | | 5 | |
Corporate | | (4.8 | ) | (2 | ) | (4.8 | ) | (2 | ) | (18.7 | ) | (2 | ) | (20.8 | ) | (2 | ) |
EBITA | | 9.3 | | 4 | | 13.6 | | 5 | | 52.6 | | 6 | | 50.9 | | 5 | |
Amort. Expense | | (1.5 | ) | (1 | ) | (1.4 | ) | (— | ) | (5.9 | ) | (1 | ) | (5.9 | ) | (— | ) |
Operating Income | | $ | 7.8 | | 3 | % | $ | 12.2 | | 5 | % | $ | 46.7 | | 5 | % | $ | 45.0 | | 5 | % |
*U.S. includes India’s results; Europe includes Eastern Asia’s results.
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