Perficient,
Inc. (NASDAQ: PRFT) (“Perficient”), a leading information technology
consulting firm serving Global 2000® and other large enterprise
customers throughout North America, today reported its financial results
for the quarter ended March 31, 2013.
Financial Highlights
For the quarter ended March 31, 2013:
-
Revenues increased 14% to $84.9 million from $74.7 million for the
first quarter 2012;
-
Services revenue increased 11% to $73.6 million from $66.2 million for
the first quarter 2012;
-
Adjusted earnings per share results (a non-GAAP measure; see attached
schedule, which reconciles to GAAP earnings per share) on a fully
diluted basis increased to $0.22 from $0.20 for the first quarter 2012;
-
Earnings per share results on a fully diluted basis increased to $0.13
from $0.10 for the first quarter 2012;
-
EBITDAS(a non-GAAP measure; see attached schedule, which
reconciles to GAAP net income) increased to $10.3 million from $10.1
million for the first quarter 2012;
-
Net income increased 38% to $4.1 million compared to $3.0 million for
the first quarter 2012; and
-
Perficient repurchased 142,000 shares of its common stock at a cost of
$1.7 million.
“Perficient’s first quarter results have laid the foundation for another
year of solid growth,” said Jeffrey Davis, chief executive officer and
president. “The strongest quarterly bookings in our history, coupled
with the recent acquisition of TriTek Solutions, Inc., have us very
well-positioned for a solid second quarter and accelerated revenue and
earnings success in the second half of 2013.”
“We see an opportunity this year to increase bill rates and improve
margins,” said Paul Martin, chief financial officer. “Perficient
continues to generate the necessary funds for both our acquisition
program and accretive share repurchase.”
Other Highlights
Among other recent achievements, Perficient:
-
Completed the acquisition
of TriTek Solutions, Inc., a $19 million annual services revenue
business and technology consulting firm focused on enterprise content
management and business process management, based in the northeastern
United States.
-
Announced it has entered into an
agreement with Premier healthcare alliance to develop clinical and
financial-based analytical software applications designed to collect
data and report on key quality measures via PremierConnect. This
signals Perficient’s commitment to more robust development of
intellectual property and repeatable solutions for its clients.
-
Added new customer relationships and follow-up projects with leading
companies including: American Bureau of Shipping, Blue Shield of
California, DTE Energy, Florida Blue, Genesco, Inc., HCA, Prime
Therapeutics, Spectrum Health, University of Houston, and Volkswagen
Group of America.
-
Was named Sitecore’s 2012 North American Sitecore Site of the Year –
Best Partner Site winner for its website www.perficient.com.
Perficient was recognized for its site’s enhanced capabilities,
including a navigable design, and continually refreshed and integrated
thought leadership content.
-
Was recognized as a finalist of the IBM Impact 2013 Best Customer
Integration Award for its WebSphere and SOA solution for client TBC.
Business Outlook
The following statements are based on current expectations. These
statements are forward-looking and actual results may differ materially.
See “Safe Harbor Statement” below.
Perficient expects its second quarter 2013 services and software
revenue, including reimbursed expenses, to be in the range of $87.5
million to $93.7 million, comprised of $82.5 million to $86.7 million of
revenue from services including reimbursed expenses and $5.0 million to
$7.0 million of revenue from sales of software. The midpoint of second
quarter 2013 services revenue guidance represents growth of 10% over
second quarter 2012 services revenue.
The company is reaffirming its full year 2013 revenue guidance range of
$358 million to $378 million and raising 2013 Adjusted GAAP earnings per
share guidance to a range of $0.98 to $1.08.
Conference Call Details
Perficient will host a conference call regarding first quarter 2013
financial results today at 10 a.m. Eastern.
WHAT: Perficient Reports First Quarter 2013 Results
WHEN: Thursday,
May 9, 2013, at 10 a.m. Eastern
CONFERENCE CALL NUMBERS: 877-280-4960
(U.S. and Canada) 857-244-7317 (International)
PARTICIPANT
PASSCODE: 21861199
REPLAY TIMES: Thursday, May 9, 2013,
at 12 p.m. Eastern, through Thursday, May 16, 2013
REPLAY NUMBER:
888-286-8010 (U.S. and Canada) 617-801-6888 (International)
REPLAY
PASSCODE: 20256094
About Perficient
Perficient is a leading information technology consulting firm serving
Global 2000 and enterprise customers throughout North America.
Perficient’s professionals serve clients from a network of offices
across North America and three offshore locations, in Eastern Europe,
India, and China. Perficient helps clients use Internet-based
technologies to improve productivity and competitiveness, strengthen
relationships with customers, suppliers, and partners, and reduce
information technology costs. Perficient, traded on the Nasdaq Global
Select Market(SM), is a member of the Russell 2000® index and the S&P
SmallCap 600 index. Perficient is an award-winning “Premier Level” IBM
business partner, a TeamTIBCO partner, a Microsoft National Systems
Integrator and Gold Certified Partner, an EMC Select Services Team
Partner, and an Oracle Platinum Partner. For more information, please
visit www.perficient.com.
Safe Harbor Statement
Some of the statements contained in this news release that are not
purely historical statements discuss future expectations or state other
forward-looking information related to financial results and business
outlook for 2013. Those statements are subject to known and unknown
risks, uncertainties, and other factors that could cause the actual
results to differ materially from those contemplated by the statements.
The “forward-looking” information is based on management’s current
intent, belief, expectations, estimates, and projections regarding our
company and our industry. You should be aware that those statements only
reflect our predictions. Actual events or results may differ
substantially. Important factors that could cause our actual results to
be materially different from the forward-looking statements include (but
are not limited to) those disclosed under the heading “Risk Factors” in
our annual report on Form 10-K for the year ended December 31, 2012 and
the following:
(1) the possibility that our actual results do not meet the projections
and guidance contained in this news release;
(2) the impact of the general economy and economic uncertainty on our
business;
(3) risks associated with the operation of our business generally,
including:
a. client demand for our services and solutions;
b. maintaining a balance of our supply of skills and resources with
client demand;
c. effectively competing in a highly competitive market;
d. protecting our clients’ and our data and information;
e. risks from international operations;
f. obtaining favorable pricing to reflect services provided;
g. adapting to changes in technologies and offerings; and
h. risk of loss of one or more significant software vendors;
(4) legal liabilities, including intellectual property protection and
infringement;
(5) risks associated with managing growth through acquisitions and
organically; and
(6) the risks detailed from time to time with our filings with the
Securities and Exchange Commission.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future
results, levels of activity, performance, or achievements. This
cautionary statement is provided pursuant to Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. The forward-looking statements in this
release are made only as of the date hereof and we undertake no
obligation to update publicly any forward-looking statement for any
reason, even if new information becomes available or other events occur
in the future.
About Non-GAAP Financial Information
This press release includes non-GAAP financial measures. For a
description of these non-GAAP financial measures, including the reasons
management uses each measure, and reconciliations of these non-GAAP
financial measures to the most directly comparable financial measures
prepared in accordance with Generally Accepted Accounting Principles
(“GAAP”), please see the section entitled “About Non-GAAP Financial
Measures” and the accompanying tables entitled “Reconciliation of GAAP
to Non-GAAP Measures.”
|
|
|
|
|
PERFICIENT, INC.
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited)
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
Revenues
|
|
|
|
|
Services
|
|
$
|
73,567
|
|
|
$
|
66,167
|
|
Software and hardware
|
|
|
7,844
|
|
|
|
4,614
|
|
Reimbursable expenses
|
|
|
3,524
|
|
|
|
3,917
|
|
Total revenues
|
|
|
84,935
|
|
|
|
74,698
|
|
|
|
|
|
|
Cost of revenues
|
|
|
|
|
Project personnel costs
|
|
|
46,854
|
|
|
|
42,699
|
|
Software and hardware costs
|
|
|
7,216
|
|
|
|
3,850
|
|
Reimbursable expenses
|
|
|
3,524
|
|
|
|
3,917
|
|
Other project related expenses
|
|
|
1,000
|
|
|
|
926
|
|
Stock compensation
|
|
|
827
|
|
|
|
659
|
|
Total cost of revenues
|
|
|
59,421
|
|
|
|
52,051
|
|
|
|
|
|
|
Gross margin
|
|
|
25,514
|
|
|
|
22,647
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
16,064
|
|
|
|
13,218
|
|
Stock compensation
|
|
|
1,807
|
|
|
|
1,574
|
|
|
|
|
7,643
|
|
|
|
7,855
|
|
|
|
|
|
|
Depreciation
|
|
|
683
|
|
|
|
463
|
|
Amortization
|
|
|
1,777
|
|
|
|
1,565
|
|
Acquisition costs (benefits)
|
|
|
(25
|
)
|
|
|
701
|
|
Adjustment to fair value of contingent consideration
|
|
|
-
|
|
|
|
171
|
|
Income from operations
|
|
|
5,208
|
|
|
|
4,955
|
|
|
|
|
|
|
Net interest expense
|
|
|
(5
|
)
|
|
|
(13
|
)
|
Net other income
|
|
|
46
|
|
|
|
46
|
|
Income before income taxes
|
|
|
5,249
|
|
|
|
4,988
|
|
Provision for income taxes
|
|
|
1,126
|
|
|
|
2,002
|
|
Net income
|
|
$
|
4,123
|
|
|
$
|
2,986
|
|
|
|
|
|
|
Basic net income per share
|
|
$
|
0.14
|
|
|
$
|
0.10
|
|
Diluted net income per share
|
|
$
|
0.13
|
|
|
$
|
0.10
|
|
|
|
|
|
|
Shares used in computing basic net income per share
|
|
|
30,292
|
|
|
|
28,556
|
|
Shares used in computing diluted net income per share
|
|
|
31,501
|
|
|
|
30,045
|
|
|
|
|
|
|
|
|
|
|
|
PERFICIENT, INC.
|
CONSOLIDATED BALANCE SHEETS
|
(unaudited)
|
(in thousands)
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
2013
|
|
2012
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
4,148
|
|
|
$
|
5,813
|
|
Accounts receivable, net
|
|
|
71,296
|
|
|
|
69,662
|
|
Prepaid expenses
|
|
|
2,148
|
|
|
|
1,649
|
|
Other current assets
|
|
|
4,458
|
|
|
|
3,717
|
|
Total current assets
|
|
|
82,050
|
|
|
|
80,841
|
|
Property and equipment, net
|
|
|
5,981
|
|
|
|
4,398
|
|
Goodwill
|
|
|
161,695
|
|
|
|
160,936
|
|
Intangible assets, net
|
|
|
15,820
|
|
|
|
17,350
|
|
Other non-current assets
|
|
|
3,705
|
|
|
|
3,669
|
|
Total assets
|
|
$
|
269,251
|
|
|
$
|
267,194
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
6,521
|
|
|
$
|
7,959
|
|
Other current liabilities
|
|
|
15,459
|
|
|
|
20,605
|
|
Total current liabilities
|
|
|
21,980
|
|
|
|
28,564
|
|
Long-term debt
|
|
|
6,000
|
|
|
|
2,800
|
|
Other non-current liabilities
|
|
|
1,659
|
|
|
|
1,417
|
|
Total liabilities
|
|
|
29,639
|
|
|
|
32,781
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Common stock
|
|
|
39
|
|
|
|
39
|
|
Additional paid-in capital
|
|
|
279,075
|
|
|
|
276,201
|
|
Accumulated other comprehensive loss
|
|
|
(430
|
)
|
|
|
(306
|
)
|
Treasury stock
|
|
|
(64,644
|
)
|
|
|
(62,970
|
)
|
Retained earnings
|
|
|
25,572
|
|
|
|
21,449
|
|
Total stockholders' equity
|
|
|
239,612
|
|
|
|
234,413
|
|
Total liabilities and stockholders' equity
|
|
$
|
269,251
|
|
|
$
|
267,194
|
|
|
|
|
|
|
About Non-GAAP Financial Measures
Perficient provides non-GAAP financial measures for EBITDAS (earnings
before interest, income taxes, depreciation, amortization, and stock
compensation), adjusted net income, and adjusted net income per share
data as supplemental information regarding Perficient’s business
performance. Perficient believes that these non-GAAP financial measures
are useful to investors because they provide investors with a better
understanding of Perficient’s past financial performance and future
results. Perficient’s management uses these non-GAAP financial measures
when it internally evaluates the performance of Perficient’s business
and makes operating decisions, including internal operating budgeting,
performance measurement, and the calculation of bonuses and
discretionary compensation. Management excludes stock-based compensation
related to employee stock options and restricted stock awards, the
amortization of intangible assets, acquisition costs, adjustments to the
fair value of contingent consideration, and income tax effects of the
foregoing, when making operational decisions. Perficient believes that
providing the non-GAAP financial measures to its investors is useful
because it allows investors to evaluate Perficient’s performance using
the same methodology and information used by Perficient’s management.
Specifically, adjusted net income is used by management primarily to
review business performance and determine performance-based incentive
compensation for executives and other employees. Management uses EBITDAS
to measure operating profitability, evaluate trends, and make strategic
business decisions.
Non-GAAP financial measures are subject to inherent limitations because
they do not include all of the expenses included under GAAP and because
they involve the exercise of discretionary judgment as to which charges
are excluded from the non-GAAP financial measure. However, Perficient’s
management compensates for these limitations by providing the relevant
disclosure of the items excluded in the calculation of EBITDAS, adjusted
net income, and adjusted net income per share. In addition, some items
that are excluded from adjusted net income and adjusted earnings per
share can have a material impact on cash. Management compensates for
these limitations by evaluating the non-GAAP measure together with the
most directly comparable GAAP measure. Perficient has historically
provided non-GAAP financial measures to the investment community as a
supplement to its GAAP results to enable investors to evaluate
Perficient’s business performance in the way that management does.
Perficient’s definition may be different from similar non-GAAP financial
measures used by other companies and/or analysts.
The non-GAAP adjustments, and the basis for excluding them, are outlined
below:
Amortization of Intangible Assets
Perficient has incurred expense on amortization of intangible assets
primarily related to various acquisitions. Management excludes these
items for the purposes of calculating EBITDAS, adjusted net income, and
adjusted net income per share. Perficient believes that eliminating this
expense from its non-GAAP financial measures is useful to investors
because the amortization of intangible assets can be inconsistent in
amount and frequency, and is significantly impacted by the timing and
magnitude of Perficient’s acquisition transactions, which also vary
substantially in frequency from period to period.
Acquisition Costs
Perficient incurs transaction costs related to acquisitions which are
expensed in its GAAP financial statements. Management excludes these
items for the purposes of calculating EBITDAS, adjusted net income, and
adjusted net income per share. Perficient believes that excluding these
expenses from its non-GAAP financial measures is useful to investors
because these are expenses associated with each transaction, and are
inconsistent in amount and frequency causing comparison of current and
historical financial results to be difficult.
Adjustments to Fair Value of Contingent Consideration
Perficient is required to remeasure its contingent consideration
liability related to acquisitions each reporting period until the
contingency is settled. Any changes in fair value are recognized in
earnings. Management excludes these items for the purposes of
calculating adjusted net income and adjusted net income per share.
Perficient believes that excluding these adjustments from its non-GAAP
financial measures is useful to investors because they are related to
acquisitions, and are inconsistent in amount and frequency from period
to period.
Stock-Based Compensation
Perficient incurs stock-based compensation expense under Financial
Accounting Standards Board Accounting Standards Codification Topic 718, Compensation
– Stock Compensation. Perficient excludes this item for the purposes
of calculating EBITDAS, adjusted net income, and adjusted net income per
share because it is a non-cash expense, which Perficient believes is not
reflective of its business performance. The nature of stock-based
compensation expense also makes it very difficult to estimate
prospectively, since the expense will vary with changes in the stock
price and market conditions at the time of new grants, varying valuation
methodologies, subjective assumptions, and different award types, making
the comparison of current results with forward looking guidance
potentially difficult for investors to interpret. The tax effects of
stock-based compensation expense may also vary significantly from period
to period, without any change in underlying operational performance,
thereby obscuring the underlying profitability of operations relative to
prior periods. Perficient believes that non-GAAP measures of
profitability, which exclude stock-based compensation are widely used by
analysts and investors.
|
|
|
|
|
PERFICIENT, INC.
|
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
|
(unaudited)
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2013
|
|
2012
|
GAAP Net Income
|
|
$
|
4,123
|
|
|
$
|
2,986
|
Additions:
|
|
|
|
|
Provision for income taxes
|
|
|
1,126
|
|
|
|
2,002
|
Amortization
|
|
|
1,777
|
|
|
|
1,565
|
Acquisition costs (benefits)
|
|
|
(25
|
)
|
|
|
701
|
Adjustment to fair value of contingent consideration
|
|
|
-
|
|
|
|
171
|
Stock compensation
|
|
|
2,634
|
|
|
|
2,233
|
Adjusted Net Income Before Tax
|
|
|
9,635
|
|
|
|
9,658
|
Adjusted income tax (1)
|
|
|
2,746
|
|
|
|
3,786
|
Adjusted Net Income
|
|
$
|
6,889
|
|
|
$
|
5,872
|
|
|
|
|
|
GAAP Net Income Per Share (diluted)
|
|
$
|
0.13
|
|
|
$
|
0.10
|
Adjusted Net Income Per Share (diluted)
|
|
$
|
0.22
|
|
|
$
|
0.20
|
Shares used in computing GAAP and Adjusted Net Income Per Share
(diluted)
|
|
|
31,501
|
|
|
|
30,045
|
|
|
|
|
|
(1) The estimated adjusted effective tax rate of 28.5% and 39.2% for
the three months ended March 31, 2013 and 2012, respectively, has
been used to calculate the provision for income taxes for non-GAAP
purposes.
|
|
|
|
|
|
|
PERFICIENT, INC.
|
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
|
(unaudited)
|
(in thousands)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2013
|
|
2012
|
GAAP Net Income
|
|
$
|
4,123
|
|
|
$
|
2,986
|
|
Additions:
|
|
|
|
|
Provision for income taxes
|
|
|
1,126
|
|
|
|
2,002
|
|
Net interest expense
|
|
|
5
|
|
|
|
13
|
|
Net other income
|
|
|
(46
|
)
|
|
|
(46
|
)
|
Depreciation
|
|
|
683
|
|
|
|
463
|
|
Amortization
|
|
|
1,777
|
|
|
|
1,565
|
|
Acquisition costs (benefits)
|
|
|
(25
|
)
|
|
|
701
|
|
Adjustment to fair value of contingent consideration
|
|
|
-
|
|
|
|
171
|
|
Stock compensation
|
|
|
2,634
|
|
|
|
2,233
|
|
EBITDAS (1)
|
|
$
|
10,277
|
|
|
$
|
10,088
|
|
|
|
|
|
|
(1) EBITDAS is a non-GAAP performance measure and is not intended to
be a performance measure that should be regarded as an alternative
to or more meaningful than either GAAP operating income or GAAP net
income. EBITDAS measures presented may not be comparable to
similarly titled measures presented by other companies.
|
|
![](http://cts.businesswire.com/ct/CT?id=bwnews&sty=20130509005202r1&sid=ntxv4&distro=nx)