Exhibit 99.1
|
| | | | |
| | | Kforce Inc. 1001 East Palm Ave. Tampa, FL 33605 (NASDAQ: KFRC) | | |
AT THE FIRM
Michael R. Blackman
Chief Corporate Development Officer
(813) 552-2927
KFORCE REPORTS FOURTH QUARTER EARNINGS AND RECORD ANNUAL REVENUES OF $1.22 BILLION
FOURTH QUARTER REVENUES FROM CONTINUING OPERATIONS OF $318.7 MILLION
FOURTH QUARTER EPS FROM CONTINUING OPERATIONS OF $0.31 PER SHARE
REPURCHASED 4.8 MILLION SHARES OF STOCK IN 2014
TAMPA, FL, February 10, 2015 (GLOBE NEWSWIRE) — Kforce Inc. (Nasdaq: KFRC), a provider of professional staffing services and solutions, today announced results for its fourth quarter and full year 2014. Revenues from continuing operations for the quarter ended December 31, 2014 were $318.7 million compared to $313.8 million for the quarter ended September 30, 2014, an increase of 4.9% on a billing day basis, and compared to $282.1 million for the quarter ended December 31, 2013, an increase of 13.0%. Income from continuing operations for the quarter ended December 31, 2014 was $9.1 million as compared to $8.0 million for the quarter ended September 30, 2014, and compared to a loss from continuing operations of $9.7 million for the quarter ended December 31, 2013. In the quarter ended December 31, 2014, Kforce reported net income (inclusive of discontinued operations) of $8.9 million, or a $0.30 per share, versus net income of $65.0 million, or $2.06 per share, for the quarter ended September 30, 2014, and a net loss for the quarter ended December 31, 2013 of $8.2 million, or $0.25 per share. Continuing operations for the quarters ended September 30, 2014 and December 31, 2013 were impacted by non-recurring charges in SG&A of $2.4 million and $11.9 million, respectively. Additionally, results for the third quarter of 2014 were impacted by the $56.1 million net gain on the sale of Kforce Healthcare, Inc. which is reported in discontinued operations and the results for the fourth quarter of 2013 were impacted by a goodwill impairment charge of $14.5 million.
Kforce reported total revenues from continuing operations for the year ended December 31, 2014 of $1.22 billion as compared to $1.07 billion for 2013, an increase of 13.4%. Income from continuing operations for the year ended December 31, 2014 was $29.4 million as compared to $5.3 million for 2013. Adjusted income from continuing operations for the year ended December 31, 2014 was $30.9 million or $0.97 per share, versus adjusted income from continuing operations of $22.7 million, or $0.67 per share for 2013. For the year ended December 31, 2014, Kforce reported net income of $90.9 million, or $2.87 per share, and for the year ended December 31, 2013 net income of $10.8 million, or $0.32 per share.
David L. Dunkel, Chairman and CEO, said, “We are pleased with our performance in the fourth quarter of 2014 and for the year ended December 31, 2014 where we achieved record revenue. Year-over-year flex revenue for our Tech and FA reporting segments increased 14.3% and 16.9%, respectively, when compared to fiscal year 2013. We are also very pleased with KGS, which has now posted four consecutive quarters of sequential growth and has now grown 22.4% when compared to Q4 2013. We believe these growth rates continue to demonstrate our relentless pursuit of gaining customer share coupled with a strong demand environment. Against a backdrop of a non-traditional economic recovery, we continue to see a disproportionate share of job growth coming from the temporary staffing sector.”
Mr. Dunkel continued, “We are very excited about our prospects, particularly with recent actions to further refine our focus around our Tech and FA service lines. We remain committed to enhancing shareholder value, and in 2014 we repurchased 4.8 million shares in the open market for $101.6 million, representing 14.3% of total shares outstanding as of December 31, 2013. I want to thank all of our clients, consultants and employees for making 2014 a very successful year for Kforce.”
Joseph J. Liberatore, President said, “I am very pleased to see another strong quarter from our team; particularly in a year with success as broad-based as this one, where we saw our flex business grow 14.2% year-over-year. Our actions in this New Era of Kforce are continuing to drive results and I am proud of the team’s execution in meeting the needs of our clients, consultants and employees.”
Mr. Liberatore noted additional operational results for the fourth quarter include:
| |
| • | Flex revenues of $306.8 million in Q4 ‘14 increased 5.1% on a billing day basis, from $301.3 million in Q3 ‘14 and increased 13.4% from $270.5 million in Q4 ‘13. |
| |
| • | Year-over-year changes in Flex revenue for Q4 were a 9.9% increase in Tech, 22.2% increase in FA, and a 22.4% increase in GS. |
| |
| • | Search revenues of $11.9 million in Q4 ‘14 decreased 4.7% from $12.5 million in Q3 ‘14 and increased 2.9% from $11.6 million in Q4 ‘13. |
| |
| • | Revenue-generating headcount increased 6.3% year-over-year. The firm expects to continue investing in revenue-generating headcount during 2015. |
David M. Kelly, Chief Financial Officer, said, “We have made significant progress towards our revenue and earnings goals. Q4 ’14 and Q4 ’13 each contained 62 billing days while Q3 '14 contained 64 billing days.” Mr. Kelly continued, “We believe that we are still on track to reach operating margins of 7.5% as annualized revenues approach $1.6 billion through a combination of several factors, including increasing productivity from our revenue-generating team and continuing to capitalize on additional efficiencies in our support structure. We believe we have set the stage for further revenue and operating leverage growth, which we believe will ultimately drive increased value to our shareholders.”
Highlights for the fourth quarter include:
| |
| • | Flex gross profit margin from continuing operations decreased 30 basis points to 28.2% in Q4 ‘14 from 28.5% in Q3 ‘14 and decreased 60 basis points from 28.8% in Q4 ‘13. |
| |
| • | Selling, general and administrative expense as a percentage of revenues from continuing operations for Q4 ‘14 was 25.5% compared to 26.2% for Q3 ‘14 and 30.6% for Q4 ‘13. |
| |
| • | The Firm repurchased 1.9 million shares for $42.4 million during the fourth quarter of 2014. |
| |
| • | During the fourth quarter of 2014, the Firm increased the cash dividend 10% to $0.11 per share from $0.10 per share for the first three quarters of 2014. |
| |
| • | The Firm amended its Credit Facility to increase borrowing capacity to $170 million and extended the term five years. |
Mr. Kelly stated, “In addition, looking forward to the first quarter of 2015, we expect revenues from continuing operations may be in the $312 million to $317 million range and earnings per share from continuing operations in the range of $0.17 to $0.19. The first quarter of 2015 has 63 billing days, as compared to 62 billing days in the fourth quarter of 2014."
On Tuesday, February 10, 2015, Kforce will host a conference call to discuss these results. The call will begin at 5:00 p.m. Eastern Time.
The dial-in number is (877) 344-3890. The conference passcode is Kforce. The replay of the call will be available from 8:00 p.m. EST, Tuesday, February 10, 2015 through February 27, 2015 by dialing (855) 859-2056, passcode 65558417.
This call is being webcast by Shareholder.com and can be accessed at Kforce’s web site at www.kforce.com (select “Investor Relations”). The webcast replay will be available until February 27, 2015.
About Kforce
Kforce (Nasdaq:KFRC) is a professional staffing and solutions firm providing flexible and permanent staffing solutions in the skill areas of technology and finance & accounting. Backed by more than 2,600 associates and more than 11,000 consultants on assignment, Kforce is committed to “Great People = Great Results” for our valued clients and candidates. Kforce operates with 63 offices located throughout the United States and one office in the Philippines. For more information, please visit our Web site at http://www.kforce.com.
The Kforce Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3749.
Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Factors that could cause actual results to differ materially include the following: business conditions and growth in the staffing industry and general economy; competitive factors, risks due to shifts in the market demand, including, without limitation, shifts in demand for our Technology, Finance and Accounting and Government Solutions segments, as well as the market for search and flexible staffing assignments; changes in the service mix; ability of the Firm to repurchase shares; ability of the Firm to complete and integrate acquisitions; the effect of adverse weather conditions, particularly during winter in the northeast and our other markets; and the risk factors listed from time to time in the Firm’s reports filed with the Securities and Exchange Commission, including the Firm’s Form 10-K for the fiscal year ending December 31, 2013, as well as assumptions regarding the foregoing. In particular, there can be no assurance that we will continue to increase our market share, successfully manage risks to our revenue stream, successfully put into place the people and processes that will create future success or further accelerate our revenue. The words “should,” “believe,” “estimate,” “expect,” “intend,” “anticipate,” “foresee,” “plan” and similar expressions and variations thereof contained in this press release identify certain of such forward-looking statements, which speak only as of the date of this press release. The Firm undertakes no obligation to publicly update or revise any forward-looking statements. As a result, such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements.
Kforce Inc.
Summary of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)
|
| | | | | | | | | | | | |
| | | Three Months Ended |
| | | Dec. 31, 2014 | | Sept. 30, 2014 | | Dec. 31, 2013 |
| Revenue by function: | | | | | | |
| Technology | | $ | 217,154 |
| | $ | 217,643 |
| | $ | 197,576 |
|
| Finance & accounting | | 75,038 |
| | 71,380 |
| | 62,790 |
|
| Government solutions | | 26,547 |
| | 24,787 |
| | 21,695 |
|
| Total revenue | | 318,739 |
| | 313,810 |
| | 282,061 |
|
| Costs of services | | 220,361 |
| | 215,519 |
| | 192,690 |
|
| Gross profit | | 98,378 |
| | 98,291 |
| | 89,371 |
|
| GP % | | 30.9 | % | | 31.3 | % | | 31.7 | % |
| Flex GP % | | 28.2 | % | | 28.5 | % | | 28.8 | % |
| Selling, general & administrative expenses | | 81,120 |
| | 82,090 |
| | 86,210 |
|
| Goodwill impairment | | — |
| | — |
| | 14,510 |
|
| Depreciation & amortization | | 2,503 |
| | 2,642 |
| | 2,452 |
|
| Income (loss) from operations | | 14,755 |
| | 13,559 |
| | (13,801 | ) |
| Other expense, net | | 367 |
| | 218 |
| | 330 |
|
| Income (loss) from continuing operations before income taxes | | 14,388 |
| | 13,341 |
| | (14,131 | ) |
| Income tax expense (benefit) | | 5,327 |
| | 5,346 |
| | (4,417 | ) |
| Income (loss) from continuing operations | | $ | 9,061 |
| | $ | 7,995 |
| | $ | (9,714 | ) |
| (Loss) income from discontinued operations, net of income taxes | | (116 | ) | | 57,023 |
| | 1,480 |
|
| Net income (loss) | | $ | 8,945 |
| | $ | 65,018 |
| | $ | (8,234 | ) |
| Earnings (loss) per share - diluted: | | | | | | |
| From continuing operations | | $ | 0.31 |
| | $ | 0.25 |
| | $ | (0.29 | ) |
| From discontinued operations | | $ | (0.01 | ) | | $ | 1.81 |
| | $ | 0.04 |
|
| Earnings (loss) per share - diluted | | $ | 0.30 |
| | $ | 2.06 |
| | $ | (0.25 | ) |
| Weighted average shares outstanding - diluted | | 29,460 |
| | 31,553 |
| | 32,889 |
|
| Adjusted EBITDA per share | | $ | 0.62 |
| | $ | 0.54 |
| | $ | 0.15 |
|
| Adjusted EBITDA | | $ | 18,194 |
| | $ | 16,912 |
| | $ | 4,808 |
|
| Other information: | | | | | | |
| Capital expenditures | | $ | 1,496 |
| | $ | 1,747 |
| | $ | 1,824 |
|
| Working capital | | $ | 130,226 |
| | $ | 87,360 |
| | $ | 112,913 |
|
| Billing days | | 62 |
| | 64 |
| | 62 |
|
Kforce Inc.
Summary of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)
|
| | | | | | | | |
| | | Twelve Months Ended |
| | | Dec. 31, 2014 | | Dec. 31, 2013 |
| Revenue by function: | | | | |
| Technology | | $ | 842,469 |
| | $ | 739,362 |
|
| Finance & accounting | | 276,811 |
| | 242,417 |
|
| Government solutions | | 98,051 |
| | 91,949 |
|
| Total revenue | | 1,217,331 |
| | 1,073,728 |
|
| Costs of services | | 842,750 |
| | 729,352 |
|
| Gross profit | | 374,581 |
| | 344,376 |
|
| GP % | | 30.8 | % | | 32.1 | % |
| Flex GP % | | 28.0 | % | | 28.9 | % |
| Selling, general & administrative expenses | | 315,338 |
| | 307,944 |
|
| Goodwill impairment | | — |
| | 14,510 |
|
| Depreciation & amortization | | 9,894 |
| | 9,846 |
|
| Income from operations | | 49,349 |
| | 12,076 |
|
| Other expense, net | | 1,392 |
| | 1,147 |
|
| Income from continuing operations before income taxes | | 47,957 |
| | 10,929 |
|
| Income tax expense | | 18,559 |
| | 5,635 |
|
| Income from continuing operations | | $ | 29,398 |
| | $ | 5,294 |
|
| Income from discontinued operations, net of income taxes | | 61,517 |
| | 5,493 |
|
| Net Income | | $ | 90,915 |
| | $ | 10,787 |
|
| Earnings per share - diluted: | | | | |
| From continuing operations | | $ | 0.93 |
| | $ | 0.16 |
|
| From discontinued operations | | $ | 1.94 |
| | $ | 0.16 |
|
| Earnings per share - diluted | | $ | 2.87 |
| | $ | 0.32 |
|
| Weighted average shares outstanding - diluted | | 31,691 |
| | 33,643 |
|
| Adjusted EBITDA per share | | $ | 1.96 |
| | $ | 1.16 |
|
| Adjusted EBITDA | | $ | 62,216 |
| | $ | 39,052 |
|
| Other information: | | | | |
| Capital expenditures | | $ | 6,414 |
| | $ | 9,824 |
|
| Working capital | | $ | 130,226 |
| | $ | 112,913 |
|
| Billing days | | 253 |
| | 253 |
|
Kforce Inc.
Consolidated Balance Sheets
(In Thousands)
(Unaudited)
|
| | | | | | | | |
| | | Dec. 31, 2014 | | Dec. 31, 2013 |
| ASSETS | | | | |
| Current Assets: | | | | |
| Cash and cash equivalents | | $ | 1,238 |
| | $ | 875 |
|
| Trade receivables, net of allowances | | 204,710 |
| | 179,095 |
|
| Income tax refund receivable | | 3,311 |
| | 7,720 |
|
| Deferred tax asset, net | | 4,980 |
| | 4,662 |
|
| Prepaid expenses and other current assets | | 10,170 |
| | 10,534 |
|
| Total current assets | | 224,409 |
| | 202,886 |
|
| Fixed assets, net | | 35,330 |
| | 36,728 |
|
| Other assets, net | | 30,349 |
| | 30,991 |
|
| Deferred tax asset, net | | 22,855 |
| | 23,270 |
|
| Intangible assets, net | | 5,011 |
| | 4,993 |
|
| Goodwill | | 45,968 |
| | 48,900 |
|
| Total assets | | $ | 363,922 |
| | $ | 347,768 |
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | |
| Current Liabilities: | | | | |
| Accounts payable and other accrued liabilities | | $ | 38,104 |
| | $ | 31,821 |
|
| Accrued payroll costs | | 52,208 |
| | 56,872 |
|
| Other current liabilities | | 986 |
| | 1,141 |
|
| Income taxes payable | | 2,885 |
| | 139 |
|
| Total current liabilities | | 94,183 |
| | 89,973 |
|
| Long-term debt - credit facility | | 93,333 |
| | 62,642 |
|
| Long-term debt - other | | 562 |
| | 1,364 |
|
| Other long-term liabilities | | 36,456 |
| | 36,556 |
|
| Total liabilities | | 224,534 |
| | 190,535 |
|
| Commitments and contingencies | | | | |
| Stockholders’ Equity: | | | | |
| Preferred stock | | — |
| | — |
|
| Common stock | | 700 |
| | 695 |
|
| Additional paid-in capital | | 412,642 |
| | 404,600 |
|
| Accumulated other comprehensive loss | | (371 | ) | | 317 |
|
| Retained earnings | | 125,378 |
| | 47,612 |
|
| Treasury stock, at cost | | (398,961 | ) | | (295,991 | ) |
| Total stockholders’ equity | | 139,388 |
| | 157,233 |
|
| Total liabilities and stockholders’ equity | | $ | 363,922 |
| | $ | 347,768 |
|
Kforce Inc.
Key Statistics
(Unaudited)
|
| | | | | | | | | | | | |
| | | Q4 2014 | | Q3 2014 | | Q4 2013 |
| Total Firm | | | | | | |
| Flex revenue (000’s) | | $ | 306,824 |
| | $ | 301,310 |
| | $ | 270,485 |
|
| Flex revenue per billing day (000’s) | | $ | 4,949 |
| | $ | 4,708 |
| | $ | 4,363 |
|
| Sequential flex revenue change | | 1.8 | % | | 3.8 | % | | 1.0 | % |
| Year over year flex revenue change | | 13.4 | % | | 12.5 | % | | 13.0 | % |
| Hours (000’s) | | 5,265 |
| | 5,030 |
| | 4,587 |
|
| Flex GP % | | 28.2 | % | | 28.5 | % | | 28.8 | % |
| Search revenue (000’s) | | $ | 11,915 |
| | $ | 12,500 |
| | $ | 11,576 |
|
| Placements | | 857 |
| | 861 |
| | 1,024 |
|
| Average fee | | $ | 13,897 |
| | $ | 14,522 |
| | $ | 11,300 |
|
| Billing days | | 62 |
| | 64 |
| | 62 |
|
| Technology | | | | | | |
| Flex revenue (000’s) | | $ | 212,414 |
| | $ | 212,269 |
| | $ | 193,238 |
|
| Flex revenue per billing day (000’s) | | $ | 3,426 |
| | $ | 3,317 |
| | $ | 3,117 |
|
| Sequential flex revenue change | | 0.1 | % | | 3.0 | % | | 2.3 | % |
| Year over year flex revenue change | | 9.9 | % | | 12.4 | % | | 18.3 | % |
| Hours (000’s) | | 3,157 |
| | 3,050 |
| | 2,870 |
|
| Flex GP % | | 27.4 | % | | 27.4 | % | | 27.9 | % |
| Search revenue (000’s) | | $ | 4,740 |
| | $ | 5,374 |
| | $ | 4,338 |
|
| Placements | | 305 |
| | 322 |
| | 281 |
|
| Average fee | | $ | 15,540 |
| | $ | 16,704 |
| | $ | 15,410 |
|
| Finance & Accounting | | | | | | |
| Flex revenue (000’s) | | $ | 67,863 |
| | $ | 64,254 |
| | $ | 55,552 |
|
| Flex revenue per billing day (000’s) | | $ | 1,095 |
| | $ | 1,004 |
| | $ | 896 |
|
| Sequential flex revenue change | | 5.6 | % | | 7.0 | % | | 1.4 | % |
| Year over year flex revenue change | | 22.2 | % | | 17.3 | % | | 7.0 | % |
| Hours (000’s) | | 2,108 |
| | 1,980 |
| | 1,717 |
|
| Flex GP % | | 29.6 | % | | 30.0 | % | | 30.3 | % |
| Search revenue (000’s) | | $ | 7,175 |
| | $ | 7,126 |
| | $ | 7,238 |
|
| Placements | | 552 |
| | 539 |
| | 743 |
|
| Average fee | | $ | 12,990 |
| | $ | 13,219 |
| | $ | 9,743 |
|
| Government Solutions | | | | | | |
| Flex revenue (000’s) | | $ | 26,547 |
| | $ | 24,787 |
| | $ | 21,695 |
|
| Flex revenue per billing day (000’s) | | $ | 428 |
| | $ | 387 |
| | $ | 350 |
|
| Sequential flex revenue change | | 7.1 | % | | 3.5 | % | | (10.1 | )% |
| Year over year flex revenue change | | 22.4 | % | | 2.7 | % | | (10.3 | )% |
| Flex GP % | | 31.0 | % | | 33.4 | % | | 32.9 | % |
Kforce Inc.
Non-GAAP Financial Measures
(In Thousands, Except Per Share Amounts)
(Unaudited)
The following non-GAAP financial measures presented may not provide information that is directly comparable to that provided by other companies, as other companies may calculate such financial results differently. The Company’s non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below.
Adjusted Income and Earnings Per Share from Continuing Operations
"Adjusted Income and Earnings Per Share from Continuing Operations”, a non-GAAP financial measure, is defined as income (loss) and earnings per share from continuing operations, adjusted for certain non-recurring operating charges, which management believes are not indicative of the Firm’s core operating results. Adjusted Income and Earnings Per Share from Continuing Operations should not be considered a measure of financial performance under generally accepted accounting principles and are presented as an alternative method for assessing the Firm’s operating results in a manner that is focused on the performance of our ongoing operations and to provide consistency and comparability of the Q4 2014 results with income earnings per share from continuing operations and from prior periods.
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended |
| | | Dec. 31, 2014 | | Sept. 30, 2014 | | Dec. 31, 2013 |
| | | $ | | Per share | | $ | | Per share | | $ | | Per share |
| Net income (loss) | | $ | 8,945 |
| | $ | 0.30 |
| | $ | 65,018 |
| | $ | 2.06 |
| | $ | (8,234 | ) | | $ | (0.25 | ) |
| (Loss) income from discontinued operations, net of income taxes | | (116 | ) | | (0.01 | ) | | 57,023 |
| | 1.81 |
| | 1,480 |
| | 0.04 |
|
| Income (loss) from continuing operations | | $ | 9,061 |
| | $ | 0.31 |
| | $ | 7,995 |
| | $ | 0.25 |
| | $ | (9,714 | ) | | $ | (0.29 | ) |
| Goodwill impairment, pre-tax | | — |
| | — |
| | — |
| | — |
| | 14,510 |
| | 0.44 |
|
| Non-recurring operating charges, pre-tax: | | | | | | | | | | | | |
| Post retirement health benefit plan terminations | | — |
| | — |
| | 1,548 |
| | 0.05 |
| | — |
| | — |
|
| Severance and termination-related expenses | | — |
| | — |
| | 502 |
| | 0.02 |
| | 7,097 |
| | 0.21 |
|
| Discretionary bonus related to realignment | | — |
| | — |
| | — |
| | — |
| | 4,737 |
| | 0.14 |
|
| Inventory adjustment related to KGS product business | | — |
| | — |
| | 370 |
| | 0.01 |
| | — |
| | — |
|
| Other | | — |
| | — |
| | — |
| | — |
| | 66 |
| | 0.01 |
|
| Non-recurring operating charges, pre-tax: | | — |
| | — |
| | 2,420 |
| | 0.08 |
| | 11,900 |
| | 0.36 |
|
| Income tax expense | | — |
| | — |
| | 970 |
| | 0.03 |
| | 9,244 |
| | 0.28 |
|
| Adjusted income from continuing operations | | $ | 9,061 |
| | $ | 0.31 |
| | $ | 9,445 |
| | $ | 0.30 |
| | $ | 7,452 |
| | $ | 0.23 |
|
| Weighted average shares outstanding - basic | | 29,209 |
| | | | 31,347 |
| | | | 32,889 |
| | |
| Weighted average shares outstanding - diluted | | 29,460 |
| | | | 31,553 |
| | | | 33,080 |
| | |
|
| | | | | | | | | | | | | | | | |
| | | Twelve Months Ended |
| | | Dec. 31, 2014 | | Dec. 31, 2013 |
| | | $ | | Per share | | $ | | Per share |
| Net income | | $ | 90,915 |
| | $ | 2.87 |
| | $ | 10,787 |
| | $ | 0.32 |
|
| Income from discontinued operations, net of income taxes | | 61,517 |
| | 1.94 |
| | 5,493 |
| | 0.16 |
|
| Income from continuing operations | | $ | 29,398 |
| | $ | 0.93 |
| | $ | 5,294 |
| | $ | 0.16 |
|
| Goodwill impairment, pre-tax | | — |
| | — |
| | 14,510 |
| | 0.43 |
|
| Non-recurring operating charges, pre-tax: | | | | | | | | |
| Post retirement health benefit plan terminations | | 1,548 |
| | 0.05 |
| | — |
| | — |
|
| Severance and termination-related expenses | | 502 |
| | 0.01 |
| | 7,097 |
| | 0.21 |
|
| Discretionary bonus related to realignment | | — |
| | — |
| | 4,737 |
| | 0.14 |
|
| Inventory adjustment related to KGS product business | | 370 |
| | 0.01 |
| | — |
| | — |
|
| Other | | — |
| | — |
| | 66 |
| | — |
|
| Non-recurring operating charges, pre-tax: | | 2,420 |
| | 0.07 |
| | 11,900 |
| | 0.35 |
|
| Income tax expense | | 937 |
| | 0.03 |
| | 9,043 |
| | 0.27 |
|
| Adjusted income from continuing operations | | $ | 30,881 |
| | $ | 0.97 |
| | $ | 22,661 |
| | $ | 0.67 |
|
| Weighted average shares outstanding - basic | | 31,475 |
| | | | 33,511 |
| | |
| Weighted average shares outstanding - diluted | | 31,691 |
| | | | 33,643 |
| | |
Adjusted EBITDA and Earnings Per Share
"Adjusted EBITDA and Earnings Per Share", a non-GAAP financial measure, is defined as earnings (loss) and earnings per share before discontinued operations, non-cash impairment charges, interest, income taxes, depreciation and amortization and stock-based compensation expense. Adjusted EBITDA and Earnings Per Share should not be considered a measure of financial performance under generally accepted accounting principles. Items excluded from Adjusted EBITDA are significant components in understanding and assessing our past and future financial performance, and this presentation should not be construed as an inference by us that our future results will be unaffected by those items excluded from Adjusted EBITDA. Adjusted EBITDA and Earnings Per Share is a key measure used by management to evaluate our operations, including our ability to generate cash flows and, consequently, management believes this is useful information to investors.
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended |
| | | Dec. 31, 2014 | | Sept. 30, 2014 | | Dec. 31, 2013 |
| | | $ | | Per
share | | $ | | Per
share | | $ | | Per
share |
| Net income (loss) | | $ | 8,945 |
| | $ | 0.30 |
| | $ | 65,018 |
| | $ | 2.06 |
| | $ | (8,234 | ) | | $ | (0.25 | ) |
| (Loss) income from discontinued operations, net of income taxes | | (116 | ) | | (0.01 | ) | | 57,023 |
| | 1.81 |
| | 1,480 |
| | 0.04 |
|
| Income (loss) from continuing operations | | $ | 9,061 |
| | $ | 0.31 |
| | $ | 7,995 |
| | $ | 0.25 |
| | $ | (9,714 | ) | | $ | (0.29 | ) |
| Goodwill impairment, pre-tax | | — |
| | — |
| | — |
| | — |
| | 14,510 |
| | 0.44 |
|
| Depreciation & amortization | | 2,503 |
| | 0.09 |
| | 2,642 |
| | 0.08 |
| | 2,452 |
| | 0.07 |
|
| Stock-based compensation expense | | 944 |
| | 0.03 |
| | 671 |
| | 0.02 |
| | 1,618 |
| | 0.05 |
|
| Interest expense and other | | 359 |
| | 0.01 |
| | 258 |
| | 0.01 |
| | 359 |
| | 0.01 |
|
| Income tax expense (benefit) | | 5,327 |
| | 0.18 |
| | 5,346 |
| | 0.18 |
| | (4,417 | ) | | (0.13 | ) |
| Adjusted EBITDA | | $ | 18,194 |
| | $ | 0.62 |
| | $ | 16,912 |
| | $ | 0.54 |
| | $ | 4,808 |
| | $ | 0.15 |
|
| Weighted average shares outstanding - basic | | 29,209 |
| | | | 31,347 |
| | | | 32,889 |
| | |
| Weighted average shares outstanding - diluted | | 29,460 |
| | | | 31,553 |
| | | | 33,080 |
| | |
|
| | | | | | | | | | | | | | | | |
| | | Twelve Months Ended |
| | | Dec. 31, 2014 | | Dec. 31, 2013 |
| | | $ | | Per share | | $ | | Per share |
| Net income | | $ | 90,915 |
| | $ | 2.87 |
| | $ | 10,787 |
| | $ | 0.32 |
|
| Income from discontinued operations, net of income taxes | | 61,517 |
| | 1.94 |
| | 5,493 |
| | 0.16 |
|
| Income from continuing operations | | $ | 29,398 |
| | $ | 0.93 |
| | $ | 5,294 |
| | $ | 0.16 |
|
| Goodwill impairment, pre-tax | | — |
| | — |
| | 14,510 |
| | 0.43 |
|
| Depreciation & amortization | | 9,894 |
| | 0.31 |
| | 9,846 |
| | 0.29 |
|
| Stock-based compensation expense | | 2,969 |
| | 0.09 |
| | 2,555 |
| | 0.07 |
|
| Interest expense and other | | 1,396 |
| | 0.04 |
| | 1,212 |
| | 0.04 |
|
| Income tax expense | | 18,559 |
| | 0.59 |
| | 5,635 |
| | 0.17 |
|
| Adjusted EBITDA | | $ | 62,216 |
| | $ | 1.96 |
| | $ | 39,052 |
| | $ | 1.16 |
|
| Weighted average shares outstanding - basic | | 31,475 |
| | | | 33,511 |
| | |
| Weighted average shares outstanding - diluted | | 31,691 |
| | | | 33,643 |
| | |
