EXHIBIT 99.1
PRESS RELEASE
PRG-SCHULTZ REPORTS FOURTH QUARTER AND FULL-YEAR 2002 FINANCIAL RESULTS
REVENUES AND EARNINGS IN LINE WITH PREVIOUS OUTLOOK; STRONG INCREASE IN EARNINGS
AND MARGINS OVER Q4 2001; 2003 OUTLOOK REVISED
ATLANTA--(BUSINESS WIRE)--Feb. 27, 2003-- PRG-Schultz International, Inc.
(Nasdaq:PRGX) today announced financial results for the fourth quarter and
full-year 2002, revised its 2003 full-year outlook and provided an outlook for
the first quarter 2003.
Fourth Quarter 2002 Financial Highlights
o Reported EPS from continuing operations was $0.08 per share on a
diluted basis.
o Pro-forma EPS from continuing operations was $0.19 per share on a
diluted basis, excluding non-recurring expenses of $10.3 million, or
$0.08 per diluted share, and transition expenses of $3.4 million, or
$0.03 per diluted share.
o Revenues totaled $118.6 million:
o Revenues from Accounts Payable Services totaled $104.7 million.
o Revenues from Other Ancillary Services totaled $13.9 million.
o Operating income margin increased to 8.7% of revenues from 2.5% during
the fourth quarter of 2001. Excluding non-recurring and transition
expenses of $13.7 million, operating income margin was 20.2% for the
fourth quarter of 2002.
o EBITDA margin (equivalent to operating income margin of 8.7% plus
depreciation and amortization of 4.3% of revenues) improved to 13.0%
of revenues from 8.9% during the fourth quarter of 2001. Excluding
non-recurring and transition expenses of $13.4 million, EBITDA margin
was 24.3% for the fourth quarter of 2002.
o Cash flow from operating activities increased to $42.8 million for the
twelve months ended December 31, 2002, from $29.2 million for the same
period a year ago.
John Cook, chairman and chief executive officer of PRG-Schultz stated, "I am
proud that PRG-Schultz delivered solid fourth quarter and full-year financial
results which were within the ranges we provided in October. During a period in
which we have been making significant changes in our US Accounts Payable
organization, and in what has continued to be a challenging environment, we
achieved our revenue and earnings objectives for the quarter, resulting in
significant year over year improvements in earnings, margins and cash flow."
"2002 was a milestone year for PRG-Schultz. We created the definitive industry
leader, completing the successful integration of PRG and HS&A," Cook continued.
"Our newly-combined US Accounts Payable organization is now in place, and we
expect the integration of our US Retail and Commercial operations to be
completed during the first quarter. We are very pleased with the progress we
have made to date. Given the significant changes we are making to our US
Commercial model coupled with the continuation of negative market trends in that
business, and given the increasing uncertainty in the retail industry and other
major industries we serve, we believe it is prudent to be more conservative in
our 2003 outlook for our US business. Our international business is performing
well, and we expect to realize our previous revenue growth outlook in those
markets."
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Cook added, "We firmly believe that integrating our US Accounts Payable business
will further enable us to leverage our combined industry expertise, capitalize
on broad-scope audit opportunities and better align service delivery to the
needs and opportunities of our clients. We will continue to leverage our
successful business model and our market leadership to capitalize on what we
believe to be significant long-term growth opportunities, both in the US and
internationally, and to deliver enhanced value to our shareholders."
Fourth Quarter 2002 Financial Results
Revenues for the fourth quarter of 2002 totaled $118.6 million, compared to
$86.4 million in the fourth quarter of 2001. Revenues from Accounts Payable
Services and Other Ancillary Services totaled $104.7 million and $13.9 million,
respectively, for the quarter, compared to $73.0 million and $13.4 million,
respectively, a year ago.
Reported earnings from continuing operations for the fourth quarter of 2002 were
$5.1 million, or $0.08 per diluted share, compared to $0.1 million, or
approximately breakeven, in the fourth quarter of 2001. As required under
generally accepted accounting principles, after-tax interest and amortization
expense related to the Company's convertible notes of approximately $1.0 million
and $4.2 million, respectively, for the fourth quarter and full-year 2002 has
been added back to earnings from continuing operations for the purpose of
calculating diluted earnings per share. Correspondingly, the approximately 16.1
million common shares into which the convertible notes can be exchanged have
been added to the diluted share count for both the fourth quarter and full-year
2002.
Operating income (EBIT) totaled $10.3 million, or 8.7% of revenues, compared to
$2.2 million, or 2.5% of revenues, in the same period a year ago. Earnings
before interest, taxes, depreciation and amortization (EBITDA) totaled $15.4
million, or 13.0% of revenues, compared to $7.7 million, or 8.9% of revenues in
the fourth quarter of 2001. EBITDA is the equivalent of operating income (EBIT)
of $10.3 million plus depreciation and amortization of $5.1 million.
Excluding non-recurring expenses of $10.3 million, or $0.08 per diluted share
after-tax, and transition expenses of $3.4 million, or $0.03 per diluted share
after-tax, earnings from continuing operations for the fourth quarter of 2002
were $13.7 million, or $0.19 per diluted share. Excluding both non-recurring and
transition expenses, operating income totaled $24.0 million, or 20.2% of
revenues, and EBITDA totaled $28.8 million, or 24.3% of revenues.
Schedules 3 and 4 provide summary financial results from continuing operations
for the fourth quarter and full-year 2002 and 2001 by operating segment on both
a reported and pro-forma basis. Schedule 5 provides a reconciliation of EBITDA
and Operating Income.
Full-Year 2002 Financial Results
Revenues for the full-year 2002 totaled $463.3 million, compared to $314.0
million for the full-year 2001. Revenues from Accounts Payable Services and
Other Ancillary Services totaled $408.9 million and $54.4 million, respectively,
compared to $259.3 million and $54.7 million, respectively, a year ago.
Reported earnings from continuing operations before the cumulative effect of an
accounting change for the full-year 2002 were $27.6 million, or $0.40 per
diluted share, compared to $2.3 million, or $0.05 per diluted share, for the
full-year 2001.
New Accounting Pronouncements
Effective January 1, 2002, the Company implemented SFAS 142, "Goodwill and Other
Intangible Assets." SFAS 142 requires that an intangible asset with a finite
life be amortized over its useful life, and that an intangible asset with an
6
infinite life and goodwill not be amortized but evaluated for impairment.
Accordingly, results for the fourth quarter and full-year 2002 do not include
any goodwill amortization. For purposes of comparison, goodwill amortization
expense totaled $2.3 million, or $0.03 per diluted share after-tax, in the
fourth quarter of 2001 and $9.3 million, or $0.13 per diluted share after-tax,
for the full-year 2001. As previously reported, in accordance with SFAS 142
implementation guidance, the Company recorded a non-cash, after-tax goodwill
impairment charge of $17.2 million in 2002 as a cumulative effect of a change in
accounting principle.
The Company also adopted SFAS 145, "Rescission of FASB Statements Nos. 4, 44,
and 64, Amendment of FASB Statement No. 13, and Technical Corrections," for its
fiscal year ended December 31, 2002 and, as such, reclassified the extraordinary
loss of $1.6 million, net of income taxes recorded in the fourth quarter of 2001
resulting from the early termination of its former $200.0 million senior credit
facility from an extraordinary item to selling, general and administrative
expense. The extraordinary loss consisted of the write-off of $2.6 million in
unamortized deferred loan costs, net of an income tax benefit of $1.0 million.
Cash Flow, DSOs and Capital Expenditures
Net cash from operating activities for the twelve months ended December 31, 2002
improved to approximately $42.8 million, compared to $29.2 million in 2001.
Company-wide, Days Sales Outstanding (DSOs) for the fourth quarter of 2002 stood
at 53 days, compared to 55 days a year ago. DSOs for Accounts Payable Services
were 59 days, compared to 60 days a year ago. Company-wide DSOs were lower than
those for Accounts Payable Services, as two of the three business units which
comprise the Other Ancillary Services reporting segment are on the cash basis of
revenue recognition in accordance with Securities and Exchange Commission
guidance.
Capital expenditures totaled approximately $5.2 million for the fourth quarter
of 2002 and $24.6 million for the full year 2002. Capital expenditures were
significantly higher in 2002 than the company estimates for 2003 due to the
acquisition and integration of HS&A, as well as the relocation of the Company's
corporate headquarters in 2002. Capital expenditures in 2003 are expected to be
in the range of $13 - $15 million.
Share Repurchases
On October 28, 2002, the Company announced that its Board of Directors has
authorized the repurchase of up to $50 million of PRG-Schultz common shares.
Purchases may be made in the open market or in privately negotiated transactions
from time to time and will depend on market conditions, business opportunities
and other factors. During the fourth quarter 2002, the Company repurchased 0.8
million shares for approximately $7.5 million. The Company funded the purchases
and anticipates funding future purchases through a combination of cash flow from
operations and borrowings under the Company's senior bank credit facility.
Included in this authorization is the possibility of the Company exercising its
second option to purchase up to approximately 1.45 million shares from an
affiliate of PRG-Schultz director Howard Schultz, as previously announced in
August 2002.
2003 Outlook
Cook said, "To reflect the challenges in our US business, and the increasing
uncertainty in the major industries we serve, we are lowering our revenue
expectations for 2003. We are also adjusting our earnings expectations to
reflect this reduction, as well as some additional integration and consulting
costs we will incur to effectively execute on the combination of our US Accounts
Payable businesses, which are expected to total approximately $0.03 per diluted
share. We continue to expect revenue growth of 18 - 22% in our international
Accounts Payable business in 2003 and fully intend to capitalize on the strong
growth opportunities in international markets through increased investments."
7
Full-year 2003
For the full-year 2003, total revenues from continuing operations are expected
to range from $465 - $477 million. Revenues from Accounts Payable Services are
estimated to range from $412 - $424 million. Revenues from Other Ancillary
Services are estimated to approximate $53 million.
Diluted earnings per share from continuing operations are expected to range from
$0.62 - $0.67 in 2003. This range reflects an earnings reduction of
approximately $0.03 per diluted share for additional integration and consulting
expenses to effect the combination of the US Accounts Payable business, the
majority of which is expected to be incurred in the first half of 2003.
The Company anticipates generating operating income in the range of $80 - 85
million, or 17 - 18% of revenues in 2003. EBITDA, which equals operating income
less depreciation and amortization, is expected to be in the range of $98 - $103
million, or 21 - 22% of revenues.
First Quarter 2003
For the first quarter 2003, total revenues from continuing operations are
expected to range from $107 - $109 million. Revenues from Accounts Payable
Services are estimated to range from $93 - $95 million. Revenues from Other
Ancillary Services are estimated to approximate $14 million.
Diluted earnings per share from continuing operations are expected to range from
$0.07 - $0.08 in the first quarter of 2003. This range reflects an earnings
reduction of approximately $0.01 - $0.02 per diluted share in connection with
the completion of the integration of the US Accounts Payable operations.
The Company noted that, compared to 2002, it expects a greater portion of annual
revenues and earnings for 2003 to be generated in the second half of the year,
which is more representative of the Company's historical experience.
Conference Call and Webcast Information
PRG-Schultz will hold a conference call today, February 27, 2003 at 10 a.m. ET.
Listeners in the U.S. and Canada should dial 800.374.0518 at least 5 minutes
prior to the start of the conference. Listeners outside the U.S. or Canada
should dial 706.643.1837. To access the conference call, provide the leader's
name 'John Cook', reference the Company, and provide the passcode 'PRGX.'
The teleconference will also be audiocast on the Internet at www.prgx.com.
Microsoft Windows Media Player is required to access the audiocast and can be
downloaded from www.microsoft.com/windows/mediaplayer.
About PRG-Schultz International, Inc.
Headquartered in Atlanta, PRG-Schultz International, Inc. (PRG-Schultz) is the
world's leading provider of recovery audit services. PRG-Schultz employs
approximately 3,500 employees, providing clients in over 40 countries with
insightful value to optimize and expertly manage their business transactions.
Using proprietary software and expert audit methodologies, PRG-Schultz industry
specialists review client invoices, purchase orders, receiving documents,
databases, and correspondence files to recover lost profits due to overpayments
or under-deductions. PRG-Schultz is retained on a pay-for-performance basis,
receiving a percentage of each dollar recovered.
Forward Looking Statements
Statements made in this news release which look forward in time involve risks
and uncertainties and are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such risks and uncertainties
8
include the following: (i) if the current economic slowdown worsens, our clients
may not make sufficient levels of purchases from which to deduct our claim
findings and we therefore may be unable to recognize anticipated revenues, (ii)
the bankruptcy of any of our larger clients, or of any such clients' larger
customers or suppliers, could impair then-existing accounts receivable and
reduce expected future revenues from such clients, (iii) modifications to
auditor compensation models may negatively impact employee retention, and
therefore, our ability to generate revenues, (iv) the businesses comprising the
other ancillary services segment may require additional time and effort of
Company executives and additional Company resources to help them achieve desired
profitability and may distract management from its focus on the Company's core
accounts payable business, and there is no guaranty that the Company can operate
these businesses efficiently and profitably, (v) we may not achieve anticipated
expense savings, (vi) our past and future investments in technology and
e-commerce may not benefit our business, (vii) our accounts payable businesses
may not grow as expected, and we may not be able to increase the number of
clients, particularly commercial, utilizing broad-scope audits, and (viii) our
international expansion may prove unprofitable, and (ix) the integration of our
US Retail and US Commercial Accounts Payable operations may adversely affect our
ability to generate anticipated revenues and profits and may not be successful
or may require more time, management attention or expense than we currently
anticipate. Other risks and uncertainties that may affect our business include
(i) the possibility of an adverse judgment in pending securities litigation,
(ii) potential timing issues that could delay revenue recognition, (iii) future
weakness in the currencies of countries in which we transact business, (iv)
changes in economic cycles, (v) competition from other companies, (vi) changes
in governmental regulations applicable to us, and and other risk factors
discussed in our Securities and Exchange Commission filings, including the
Company's Form 10-Q as filed with the Securities and Exchange Commission on
November 13, 2002 and post-effective amendment to Form S-3, as filed with the
Securities and Exchange commission on October 29, 2002. The Company disclaims
any obligation or duty to update or modify these forward-looking statements.
9
SCHEDULE 1
PRG-Schultz International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
----------------- ------------------
2002 2001 2002 2001
-------- -------- -------- --------
Revenues $118,598 $ 86,373 $463,297 $314,025
Cost of revenues 68,793 50,118 265,488 180,519
Selling, general and
administrative expenses 39,537 34,102 144,724 118,902
-------- -------- -------- --------
Operating income 10,268 2,153 53,085 14,604
Interest (expense), net (2,181) (1,105) (9,339) (8,903)
-------- -------- -------- --------
Earnings from continuing
operations before income taxes,
discontinued operations and
cumulative effect of accounting
change 8,087 1,048 43,746 5,701
Income taxes 2,992 906 16,186 3,363
-------- -------- -------- --------
Earnings from continuing
operations before discontinued
operations and cumulative effect
of accounting change operations
and cumulative effect of
accounting change 5,095 142 27,560 2,338
Discontinued operations:
Loss from discontinued operations,
net of income taxes - (1,991) - (3,294)
Gain (loss) on disposal /
retention of discontinued
operations including operating
results for phase-out period, net
of income taxes - (53,948) 2,716 (82,755)
-------- -------- -------- --------
Gain (loss) from discontinued
operations - (55,939) 2,716 (86,049)
-------- -------- -------- --------
Earnings (loss) before cumulative
effect of accounting change 5,095 (55,797) 30,276 (83,711)
Cumulative effect of accounting
change, net of income taxes - - (17,208) -
-------- -------- -------- --------
Net earnings (loss) $ 5,095 $(55,797)$ 13,068 $(83,711)
======== ======== ======== ========
Basic earnings (loss) per share:
Earnings from continuing
operations before discontinued
operations and cumulative effect
of accounting change $ 0.08 $ - $ 0.44 $ 0.05
Discontinued operations - (1.15) 0.04 (1.78)
Cumulative effect of accounting
change - - (0.27) -
-------- -------- -------- --------
Net earnings (loss) $ 0.08 $ (1.15)$ 0.21 $ (1.73)
======== ======== ======== ========
Diluted earnings (loss) per share:
Earnings from continuing
operations before discontinued
operations and cumulative effect
of accounting change $ 0.08 $ - $ 0.40 $ 0.05
Discontinued operations - (1.14) 0.03 (1.77)
Cumulative effect of accounting
change - - (0.21) -
-------- -------- -------- --------
Net earnings (loss) $ 0.08 $ (1.14)$ 0.22 $ (1.72)
======== ======== ======== ========
Weighted average shares
outstanding:
Basic 62,961 48,645 62,702 48,298
======== ======== ======== ========
Diluted 79,652 48,899 79,988 48,733
======== ======== ======== ========
SCHEDULE 2
PRG-Schultz International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
December 31, December 31,
2002 2001
----------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 14,860 $ 33,334
Receivables:
Contract receivables 69,976 52,851
Employee advances and miscellaneous
receivables 3,600 4,917
----------- ------------
Total receivables 73,576 57,768
----------- ------------
Funds held for client obligations 9,043 8,784
Prepaid expenses and other current assets 4,068 4,860
Deferred income taxes 25,930 21,216
----------- ------------
Total current assets 127,477 125,962
Property and equipment 35,057 24,529
Noncompete agreements 93 188
Deferred loan costs 1,011 875
Goodwill 371,833 196,820
Intangible assets 36,214 -
Deferred income taxes 10,628 20,048
Other assets 3,467 10,838
----------- ------------
Total assets $ 585,780 $ 379,260
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ - $ 11,564
Current installments of long-term debt 5,527 20
Obligation for client payables 9,043 8,784
Accounts payable and accrued expenses 24,269 23,937
Accrued payroll and related expenses 50,411 37,089
Deferred revenue 2,665 4,581
----------- ------------
Total current liabilities 91,915 85,975
Long-term debt, excluding current
installments 26,363 -
Convertible notes, net of unamortized
discount of $3,509 in 2002
and $3,834 in 2001 121,491 121,166
Deferred compensation 4,011 4,024
Other long-term liabilities 4,115 -
----------- ------------
Total liabilities 247,895 211,165
----------- ------------
Shareholders' equity:
Preferred stock - -
Common stock 67 51
Additional paid-in capital 491,894 320,126
Accumulated deficit (110,678) (123,746)
Accumulated other comprehensive loss (1,601) (6,385)
Less treasury stock at cost (41,182) (21,024)
Unearned portion of restricted stock (615) (927)
----------- ------------
Total shareholders' equity 337,885 168,095
----------- ------------
----------- ------------
Total liabilities and shareholders'
equity $ 585,780 $ 379,260
=========== ============
SCHEDULE 3
PRG-Schultz International, Inc. and
Subsidiaries
Summary Reported and Pro-Forma Operating
Segment Results from Continuing Operations
(Unaudited)
Three Months Ended December 31
(in thousands except earnings per share data)
- ----------------------------------------------------------------------
2002
-----------------------------------------------------
As Reported Non- Transition Pro-Forma
Recurring Expenses
Expenses
-----------------------------------------------------
$ % Rev. $ $ $ % Rev.
-----------------------------------------------------
Accounts Payable Services
- -------------------------
Revenues $ 104,699 $104,699
Operating Income $ 30,997 29.6% $ 125 $ 401 $ 31,523 30.1%
-----------------------------------------------------
Other Ancillary Services
- ------------------------
Revenues $ 13,899 $ 13,899
Operating Income $ 2,011 14.5% $ 0 $ 0 $ 2,011 14.5%
-----------------------------------------------------
Corporate Support
- --------------------
Operating Income ($22,740)-19.2% $10,166 $ 3,003 ($9,571)-8.1%
-----------------------------------------------------
Total
- --------------------
Revenues $ 118,598 $118,598
Operating Income $ 10,268 8.7% $10,291 $ 3,404 $ 23,963 20.2%
Earnings from
Continuing
Operations $ 5,095 4.3% $ 6,483 $ 2,145 $ 13,723 11.6%
Diluted Earnings Per
Share from
Continuing
Operations $ 0.08 $ 0.08 $ 0.03 $ 0.19
Diluted Shares 79,652 79,652 79,652 79,652
-----------------------------------------------------
2001
-----------------------------------------------------
As Reported Non- Goodwill Pro-Forma
Recurring Amortization
Expenses
-----------------------------------------------------
$ % Rev. $ $ $ % Rev.
-----------------------------------------------------
Accounts Payable Services
- --------------------------
Revenues $ 72,965 $ 72,965
Operating Income $ 13,315 18.2% $ 2,347 $ 1,931 $ 17,593 24.1%
-----------------------------------------------------
Other Ancillary Services
- --------------------------
Revenues $ 13,408 $ 13,408
Operating Income $ 582 4.3% $ 1,522 $ 415 $ 2,519 18.8%
-----------------------------------------------------
Corporate Support
- -----------------
Operating Income ($11,744)-13.6% $ 4,529 ($93) ($7,308)-8.5%
-----------------------------------------------------
Total
- -----------------
Revenues $ 86,373 $ 0 $ 0 $ 86,373
Operating Income $ 2,153 2.5% $ 8,398 $ 2,253 $ 12,804 14.8%
Earnings from
Continuing
Operations $ 142 0.2% $ 4,317 $ 1,549 $ 6,008 7.0%
Diluted Earnings
Per Share from
Continuing
Operations $ 0.00 $ 0.09 $ 0.03 $ 0.12
Diluted Shares 48,899 48,899 48,899 48,899
-----------------------------------------------------
Note: Diluted Earnings Per Share Excludes Discontinued Operations.
SCHEDULE 4
PRG-Schultz International, Inc. and Subsidiaries
Summary Reported and Pro-Forma Operating Segment
Results from Continuing Operations
(Unaudited)
Twelve Months Ended December 31
(in thousands except earnings per share data)
- ----------------------------------------------------------------------
2002
-----------------------------------------------------
As Reported Non- Transition Pro-Forma
Recurring Expenses
Expenses
-----------------------------------------------------
$ % Rev. $ $ $ % Rev.
-----------------------------------------------------
Accounts Payable Services
- ----------------------------------
Revenues $ 408,900 $ 408,900
Operating Income $ 112,529 27.5% $ 1,775 $ 3,772 $ 118,076 28.9%
-----------------------------------------------------
Other Ancillary Services
- ----------------------------------
Revenues $ 54,397 $ 54,397
Operating Income $ 8,292 15.2% $ 0 $ 0 $ 8,292 15.2%
-----------------------------------------------------
Corporate Support
- -----------------
Operating Income ($67,736) -14.6% $12,279 $16,679 ($38,778) -8.4%
-----------------------------------------------------
Total
- -----------------
Revenues $ 463,297 $ 463,297
Operating Income $ 53,085 11.5% $14,054 $20,451 $ 87,590 18.9%
Earnings from
Continuing
Operations $ 27,560 5.9% $ 8,854 $12,884 $ 49,298 10.6%
Diluted Earnings
Per Share from
Continuing
Operations $ 0.40 $ 0.11 $ 0.16 $ 0.67
Diluted Shares 79,988 79,988 79,988 79,988
-----------------------------------------------------
2001
-----------------------------------------------------
As Reported Non- Goodwill Pro-Forma
Recurring Amortization
Expenses
-----------------------------------------------------
$ % Rev. $ $ $ % Rev.
-----------------------------------------------------
Accounts Payable Services
- ----------------------
Revenues $ 259,264 $ 259,264
Operating
Income $ 51,493 19.9% $ 2,516 $ 7,721 $ 61,730 23.8%
-----------------------------------------------------
Other Ancillary Services
- ----------------------
Revenues $ 54,761 $ 54,761
Operating
Income $ 1,299 2.4% $ 4,706 $ 1,653 $ 7,658 14.0%
-----------------------------------------------------
Corporate Support
- -------------
Operating
Income ($38,188) -12.2% $ 5,160 ($33) ($33,061) -10.5%
-----------------------------------------------------
Total
- -------------
Revenues $ 314,025 $ 0 $ 0 $ 314,025
Operating
Income $ 14,604 4.6% $12,382 $ 9,341 $ 36,327 11.6%
Earnings from
Continuing
Operations $ 2,338 0.7% $ 6,198 $ 6,398 $ 14,934 4.8%
Diluted
Earnings Per
Share from
Continuing
Operations $ 0.05 $ 0.13 $ 0.13 $ 0.31
Diluted
Shares 48,733 48,733 48,733 48,733
-----------------------------------------------------
Note: Diluted Earnings Per Share Excludes Discontinued Operations
and Cumulative Effect of Accounting Change (2002).
SCHEDULE 5
PRG-Schultz International, Inc. and Subsidiaries
Summary EBITDA and Operating Income from Continuing Operations
Reconciliation
(in thousands) (Unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
------------------------------------
2002 2001 2002 2001
------- --------- --------- -------
Operating Income $10,268 $ 2,153 $ 53,085 $14,604
Add-back:
Depreciation and Amortization $ 5,111 $ 5,509 $ 18,503 $21,865
- ---------------------------------- ------- --------- --------- -------
EBITDA $15,379 $ 7,662 $ 71,588 $36,469
Add-back:
Non-Recurring Expenses $ 9,986 $ 8,398 $ 13,079 $12,382
Transition Expenses $ 3,404 $ - $ 18,755 $ -
- ---------------------------------- ------- --------- --------- -------
EBITDA Excluding Non-Recurring &
Transition Expenses $28,769 $ 16,060 $ 103,422 $48,851
EBITDA as % of Revenues 13.0% 8.9% 15.5% 11.6%
EBITDA Excluding Non-Recurring &
Transition Expenses as % of
Revenues 24.3% 18.6% 22.3% 15.6%
SOURCE: PRG-Schultz International, Inc.
1594142