Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

August 9, 2018

Date of Report (Date of earliest event reported)

 

 

PRGX Global, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Georgia

(State or Other Jurisdiction of Incorporation)

 

0-28000   58-2213805
(Commission File Number)   (IRS Employer Identification No.)
600 Galleria Parkway, Suite 100, Atlanta, Georgia   30339-5949
(Address of Principal Executive Offices)   (Zip Code)

770-779-3900

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 2.02.

Results of Operations and Financial Condition.

The following information is being furnished pursuant to Item 2.02 of Form 8-K. This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

On August 9, 2018, PRGX Global, Inc. issued a press release announcing its unaudited results for the second quarter of 2018, a copy of which is furnished herewith as Exhibit 99.1.

 

Item 9.01.

Financial Statements and Exhibits

 

(d)

Exhibits

The following exhibit is furnished herewith:

 

  99.1

Press Release dated August 9, 2018


EXHIBIT INDEX

 

Exhibit

Number

  

Description of Exhibits

99.1    Press Release dated August 9, 2018


SIGNATURES

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

PRGX Global, Inc.
By:   /s/ Victor A. Allums
  Victor A. Allums
  Senior Vice President, Secretary and General Counsel

Dated: August 9, 2018

EX-99.1

Exhibit 99.1

 

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Press Release

PRGX Global, Inc. Announces Second Quarter 2018 Financial Results

ATLANTA, August 9, 2018 - PRGX Global, Inc. (Nasdaq: PRGX), a global leader in Recovery Audit and Spend Analytics services, today announced its unaudited financial results for the second quarter ended June 30, 2018.

“We continued our strong performance in the second quarter, delivering our eighth straight quarter of year-over-year revenue and adjusted EBITDA growth. Revenue from continuing operations in the second quarter grew over 9% and adjusted EBITDA from continuing operations grew over 17%. Also noteworthy in the second quarter was year-over-year revenue growth of over 47% in Adjacent Services. We are pleased with our second quarter results, achieving growth in every service line and in each region,” said Ron Stewart, president and chief executive officer.

“Our new business pipeline is strong and growing, providing continued momentum into the back half of 2018. Since the beginning of the year we have added more than 20 new clients and secured more than 25 service expansions in existing clients. Given our strong performance in the first half of the year and positive outlook for the remainder of the year, we remain on track to meet our 2018 guidance of year-over-year revenue growth in the range of 8% to 10% and adjusted EBITDA growth in the range of 17% to 22%,” concluded Stewart.

Consolidated Results from Continuing Operations for the Three Months Ended June 30, 2018

Consolidated revenue from continuing operations for the second quarter of 2018 was $42.1 million, compared to $38.5 million for the same period last year, an increase of 9.3%. Second quarter 2018 revenue from the Recovery Audit Services segments was $40.4 million compared to $37.3 million in the prior year, and from the Adjacent Services segment was $1.7 million compared to $1.2 million in 2017. On a constant dollar basis adjusted for changes in foreign exchange rates, consolidated revenue from continuing operations increased by 8.5% in the second quarter of 2018, compared to the same period in the prior year. On a constant dollar basis, revenue from the Recovery Audit Services segments increased 7.2% and revenue from the Adjacent Services segment increased 49.3% for the second quarter of 2018 compared to the same period in 2017.

Total cost of revenue from continuing operations for the second quarter of 2018 was $27.4 million, or 65.0% of revenue, compared to $25.6 million, or 66.5% of revenue, in the same period last year, an improvement of approximately 150 basis points in gross margin as a percentage of revenue.

Selling, general and administrative expenses from continuing operations for the second quarter of 2018 were $12.8 million, compared to $11.4 million in the prior year period. The increase in SG&A expenses for this period was primarily attributable to planned investments in our product development organization and global go-to-market team.


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Consolidated net loss from continuing operations for the second quarter of 2018 was $2.9 million, or a negative $0.13 per basic and diluted share, compared to net loss of $0.3 million, or a negative $0.01 per basic and diluted share, for the same period in 2017.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) from continuing operations for the second quarter of 2018 was $4.1 million, or 9.7% of revenue, compared to Adjusted EBITDA of $3.5 million, or 9.0% of revenue, in the second quarter of 2017, an increase of 17.4%. Schedule 3 attached to this press release provides a reconciliation of net loss to each of EBIT (Earnings Before Interest and Taxes), EBITDA and Adjusted EBITDA.

Consolidated Results from Continuing Operations for the Six Months Ended June 30, 2018

Consolidated revenue from continuing operations for the six months ended June 30, 2018 was $78.8 million, compared to $72.1 million for the same period last year, an increase of 9.3%. For the six months ended June 30, 2018, revenue from the Recovery Audit Services segments was $76.3 million compared to $69.5 million in the prior year, and from the Adjacent Services segment was $2.5 million compared to $2.5 million in 2017. On a constant dollar basis adjusted for changes in foreign exchange rates, consolidated revenue from continuing operations increased by 7.2% in the six months ended June 30, 2018, compared to the same period in the prior year. On a constant dollar basis, revenue from the Recovery Audit Services segments increased 7.6% and revenue from the Adjacent Services segment decreased 3.1% for the for the six months ended June 30, 2018 compared to the same period in 2017.

Total cost of revenue from continuing operations for the six months ended June 30, 2018 was $52.2 million, or 66.2% of revenue, compared to $48.6 million, or 67.5% of revenue, in the same period last year, an improvement of approximately 130 basis points in gross margin as a percentage of revenue.

SG&A expenses from continuing operations for the six months ended June 30, 2018 were $24.1 million, compared to $22.0 million in the prior year period. The increase in SG&A expenses for this period was primarily attributable to planned investments in our product development organization and global go-to-market team.

Consolidated net loss from continuing operations for the six months ended June 30, 2018 was $5.2 million, or $0.23 per basic and diluted share, compared to a net loss of $2.2 million, or $0.10 per basic and diluted share, for the same period in 2017.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) from continuing operations for the six months ended June 30, 2018 was $7.4 million, or 9.4% of revenue, compared to Adjusted EBITDA of $5.6 million, or 7.8% of revenue, for the same period in the prior year. Schedule 3 attached to this press release provides a reconciliation of net income (loss) to each of EBIT (Earnings Before Interest and Taxes), EBITDA and Adjusted EBITDA.


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Cash Flow and Liquidity

Net cash used by operating activities for the second quarter of 2018 was $3.5 million compared to net cash provided of $4.6 million in the second quarter of the prior year, and net cash used was $6.5 million for the six months ended June 30, 2018 compared to net cash provided of $1.3 million in the same period in the prior year.

At June 30, 2018, the Company had unrestricted cash and cash equivalents of $9.7 million, and borrowings of $17.6 million against its $35.0 million revolving credit facility. During the second quarter of 2018, the Company borrowed $4 million from its revolving credit facility to pay contingent consideration related to a prior acquisition.

Second Quarter Earnings Call

As previously announced, management will hold a conference call later today at 5:00 PM (Eastern time) to discuss the Company’s second quarter 2018 financial results. To access the conference call, listeners in the U.S. and Canada should dial (877) 755-7423 at least 5 minutes prior to the start of the conference. Listeners outside the U.S. and Canada should dial (678) 894-3069. To be admitted to the call, listeners should use passcode 9099844.

This teleconference will also be audiocast on the Internet at www.prgx.com (click on “Events & Presentations” under “Investors”). A replay of the audiocast will be available at the same location on www.prgx.com beginning approximately two hours after the conclusion of the live audiocast, extending through September 30, 2018. Please note that the Internet audiocast is “listen-only.” Microsoft Windows Media Player is required to access the live audiocast and the replay and can be downloaded from www.microsoft.com/en-us/downloads.

About PRGX

PRGX Global, Inc. is a global leader in Recovery Audit and Spend Analytics services. With over 1,500 employees, the Company serves clients in more than 30 countries and provides its services to 75% of the top 20 global retailers and over 25% of the top 50 companies in the Fortune 500. PRGX delivers more than $1 billion in cash flow improvement for its clients each year. The creator of the recovery audit industry more than 40 years ago, PRGX continues to innovate through technology and expanded service offerings. In addition to Recovery Audit, PRGX provides Contract Compliance, Spend Analytics and Supplier Information Management services to improve clients’ financial performance and manage risk. For additional information on PRGX, please visit www.prgx.com


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Forward-Looking Statements

In addition to historical information, this press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include both implied and express statements regarding the Company’s overall condition and growth prospects, the Company’s execution of its business strategy, the sustainability and predictability of the Company’s growth, the Company’s sales pipeline, and the Company’s expectations regarding its 2018 financial performance. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from the historical results or from any results expressed or implied by such forward-looking statements. Risks that could affect the Company’s future performance include revenue that does not meet expectations or justify costs incurred, the Company’s ability to develop material sources of new revenue in addition to revenue from its core recovery audit services, changes in the market for the Company’s services, the Company’s ability to retain and attract qualified personnel, the Company’s ability to integrate recent and future acquisitions, uncertainty in the credit markets, the Company’s ability to maintain compliance with its financial covenants, client bankruptcies, loss of major clients, and other risks generally applicable to the Company’s business. For a discussion of other risk factors that may impact the Company’s business, please see the Company’s filings with the Securities and Exchange Commission. The Company disclaims any obligation or duty to update or modify these forward-looking statements

Non-GAAP Financial Measures

EBIT, EBITDA and Adjusted EBITDA are all “non-GAAP financial measures” presented as supplemental measures of the Company’s performance. They are not presented in accordance with accounting principles generally accepted in the United States, or GAAP. The Company believes these measures provide additional meaningful information in evaluating its performance over time, and that the rating agencies and a number of lenders use EBITDA and similar measures for similar purposes. In addition, a measure similar to Adjusted EBITDA is used in the restrictive covenants contained in the Company’s secured credit facility. However, EBIT, EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of the Company’s results as reported under GAAP. In addition, in evaluating EBIT, EBITDA and Adjusted EBITDA, you should be aware that, as described above, the adjustments may vary from period to period and in the future the Company will incur expenses such as those used in calculating these measures. The Company’s presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. Schedule 3 to this press release provides a reconciliation of net income (loss) to each of EBIT, EBITDA and Adjusted EBITDA.

This news release was distributed by GlobeNewswire, www.globenewswire.com


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CONTACT: PRGX Global, Inc.

investor-relations@prgx.com

Phone: 770-779-3011


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SCHEDULE 1

PRGX Global, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Amounts in thousands, except per share data)

(Unaudited)

 

     Three Months     Six Months  
     Ended June 30,     Ended June 30,  
     2018     2017     2018     2017  

Revenue, net

   $ 42,102     $ 38,510     $ 78,823     $ 72,079  

Operating expenses:

        

Cost of revenue

     27,389       25,605       52,186       48,631  

Selling, general and administrative expenses

     12,809       11,424       24,073       21,960  

Depreciation of property and equipment

     2,360       1,109       3,583       2,329  

Amortization of intangible assets

     864       722       1,652       1,444  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     43,422       38,860       81,494       74,364  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss from continuing operations

     (1,320     (350     (2,671     (2,285

Foreign currency transaction losses (gains) on short-term intercompany balances

     880       (957     660       (1,509

Interest expense, net

     486       48       884       85  

Other loss (income)

     5       5       17       (194
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income from continuing operations before income taxes

     (2,691     554       (4,232     (667
  

 

 

   

 

 

   

 

 

   

 

 

 

Income tax expense

     189       879       976       1,506  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss from continuing operations

   $ (2,880   $ (325   $ (5,208   $ (2,173
  

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued operations:

        

Loss from discontinued operations

     (26     (349     (359     (685

Income tax expense

     —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss from discontinued operations

     (26     (349     (359     (685

Net loss

   $ (2,906   $ (674   $ (5,567   $ (2,858
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic loss per common share:

        

Basic loss from continuing operations

   $ (0.13   $ (0.01   $ (0.23   $ (0.10

Basic loss from discontinued operations

     —         (0.02     (0.01     (0.03
  

 

 

   

 

 

   

 

 

   

 

 

 

Total basic loss per common share

   $ (0.13   $ (0.03   $ (0.24   $ (0.13
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted loss per common share:

        

Diluted loss from continuing operations

   $ (0.13   $ (0.01   $ (0.23   $ (0.10

Diluted loss from discontinued operations

     —         (0.02     (0.01     (0.03
  

 

 

   

 

 

   

 

 

   

 

 

 

Total diluted loss per common share

   $ (0.13   $ (0.03   $ (0.24   $ (0.13
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding:

        

Basic

     23,283       22,227       22,930       22,087  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     23,283       22,227       22,930       22,087  
  

 

 

   

 

 

   

 

 

   

 

 

 


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SCHEDULE 2

PRGX Global, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

     June 30,     December 31,  
     2018     2017  
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 9,731     $ 18,823  

Restricted cash

     159       51  

Receivables:

    

Contract receivables, net

     38,152       38,767  

Employee advances and miscellaneous receivables, net

     1,358       1,665  
  

 

 

   

 

 

 

Total receivables

     39,510       40,432  

Prepaid expenses and other current assets

     4,348       4,608  
  

 

 

   

 

 

 

Total current assets

     53,748       63,914  

Property and equipment, net

     19,163       17,478  

Goodwill

     17,591       17,648  

Intangible assets, net

     16,773       18,478  

Deferred income taxes

     1,378       1,538  

Other assets

     1,726       1,162  
  

 

 

   

 

 

 

Total assets

   $ 110,379     $ 120,218  
  

 

 

   

 

 

 
LIABILITIES AND SHAREHOLDERS’ EQUITY     

Current liabilities:

    

Accounts payable and accrued expenses

   $ 7,263     $ 8,548  

Accrued payroll and related expenses

     10,239       13,078  

Refund liabilities

     8,499       7,864  

Deferred revenue

     1,795       1,431  

Current portion of long-term debt

     48       48  

Current portion of long-term incentive compensation liability

     998       5,116  

Current portion of business acquisition obligations

     5,444       3,759  
  

 

 

   

 

 

 

Total current liabilities

     34,286       39,844  

Long-term debt

     17,543       13,526  

Business acquisition obligations

     —         5,135  

Refund liabilities

     287       957  

Other long-term liabilities

     461       442  
  

 

 

   

 

 

 

Total liabilities

     52,577       59,904  
  

 

 

   

 

 

 

Shareholders’ equity:

    

Common stock

     235       224  

Additional paid-in capital

     583,468       580,032  

Accumulated deficit

     (525,616     (520,049

Accumulated other comprehensive income

     (285     107  
  

 

 

   

 

 

 

Total shareholders’ equity

     57,802       60,314  
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 110,379     $ 120,218  
  

 

 

   

 

 

 


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SCHEDULE 3

PRGX Global, Inc. and Subsidiaries

Reconciliation of Net Loss to EBIT, EBITDA and Adjusted EBITDA

(Amounts in thousands)

(Unaudited)

 

     Three Months     Six Months  
     Ended June 30,     Ended June 30,  
     2018     2017     2018     2017  

Reconciliation of net income (loss) to EBIT, EBITDA and Adjusted EBITDA:

        

Net loss

   $ (2,906   $ (674   $ (5,567   $ (2,858

Income tax expense

     189       879       976       1,506  

Interest expense, net

     486       48       884       85  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT

     (2,231     253       (3,707     (1,267

Depreciation of property and equipment

     2,360       1,113       3,584       2,333  

Amortization of intangible assets

     864       722       1,652       1,444  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     993       2,088       1,529       2,510  

Foreign currency transaction losses (gains) on short-term intercompany balances

     880       (957     660       (1,509

Transformation severance and related expenses

     1,315       314       1,989       899  

Other loss (income)

     5       5       17       (194

Stock-based compensation

     873       1,688       2,818       3,254  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 4,066     $ 3,138     $ 7,013     $ 4,960  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA from continuing operations

   $ 4,092     $ 3,484     $ 7,371     $ 5,641  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA from discontinued operations

   $ (26   $ (346   $ (358   $ (681
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT, EBITDA and Adjusted EBITDA are all “non-GAAP financial measures” presented as supplemental measures of our performance. They are not presented in accordance with accounting principles generally accepted in the United States, or GAAP. The Company believes these measures provide additional meaningful information in evaluating the Company’s performance over time, and that the rating agencies and a number of lenders use EBIT, EBITDA and similar measures for similar purposes. In addition, a measure similar to Adjusted EBITDA is used in the restrictive covenants contained in the Company’s secured credit facility. However, EBIT, EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of our results as reported under GAAP. In addition, in evaluating EBIT, EBITDA and Adjusted EBITDA, you should be aware that in the future we will incur expenses such as those used in calculating these measures. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items.


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SCHEDULE 4

PRGX Global, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Amounts in thousands)

(Unaudited)

 

     Three Months     Six Months  
     Ended June 30,     Ended June 30,  
     2018     2017     2018     2017  

Cash flows from operating activities:

        

Net loss

   $ (2,906   $ (674   $ (5,567   $ (2,858

Adjustments to reconcile net loss to net cash used in operating activities:

        

Depreciation and amortization

     3,224       1,833       5,235       3,773  

Amortization of deferred debt costs

     24       20       32       20  

Deferred income taxes

     —         —         169       —    

Stock-based compensation expense

     873       1,688       2,818       3,254  

Foreign currency transaction losses (gains) on short-term intercompany balances

     880       (957     660       (1,509

Long-term incentive compensation payout

     —         —         (5,380  

(Increase) decrease in receivables

     (6,018     117       (118     2,154  

Increase (decrease) in accounts payable, accrued payroll and other accrued expenses

     96       4,436       (5,609     282  

Other, primarily changes in assets and liabilities

     316       (1,846     1,280       (3,840
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used in) provided by operating activities

     (3,511     4,617       (6,480     1,276  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

        

Acquistion of businesses, net of cash acquired

     —         12       19       (10,128

Purchases of property and equipment, net of disposals

     (2,807     (2,549     (5,327     (4,049
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (2,807     (2,537     (5,308     (14,177
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

        

Net borrowings under line of credit

     4,000       —         4,000       10,000  

Payment of earnout liability related to business acquisitions

     (4,000     —         (4,000     —    

Other, net

     785       222       1,957       604  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by financing activities

     785       222       1,957       10,604  
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rates on cash and cash equivalents

     316       (967     739       (556
  

 

 

   

 

 

   

 

 

   

 

 

 

Net change in cash and cash equivalents

     (5,217     1,335       (9,092     (2,853

Cash and cash equivalents at beginning of period

     14,948       11,535       18,823       15,723  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 9,731     $ 12,870     $ 9,731     $ 12,870  
  

 

 

   

 

 

   

 

 

   

 

 

 


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SCHEDULE 5

PRGX Global, Inc. and Subsidiaries

Results by Operating Segment *

(Amounts in thousands)

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2018     2017     Change     2018     2017     Change  

Revenue

            

Recovery Audit Services - Americas

   $ 28,912     $ 26,553     $ 2,359     $ 54,870     $ 50,936     $ 3,934  

Recovery Audit Services - Europe/Asia-Pacific

     11,445       10,773       672       21,472       18,604       2,868  

Adjacent Services

     1,745       1,184       561       2,481       2,539       (58
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 42,102     $ 38,510     $ 3,592     $ 78,823     $ 72,079     $ 6,744  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenue

            

Recovery Audit Services - Americas

   $ 19,113     $ 17,324     $ 1,789     $ 35,264     $ 32,602     $ 2,662  

Recovery Audit Services - Europe/Asia-Pacific

     6,834       6,717       117       13,919       12,903       1,016  

Adjacent Services

     1,442       1,564       (122     3,003       3,126       (123
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 27,389     $ 25,605     $ 1,784     $ 52,186     $ 48,631     $ 3,555  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Selling, general and administrative expenses

            

Recovery Audit Services - Americas

   $ 2,897     $ 2,615     $ 282     $ 5,688     $ 4,658     $ 1,030  

Recovery Audit Services - Europe/Asia-Pacific

     1,737       1,786       (49     3,108       3,133       (25

Adjacent Services

     523       959       (436     854       2,130       (1,276

Corporate

     7,652       6,064       1,588       14,423       12,039       2,384  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 12,809     $ 11,424     $ 1,385     $ 24,073     $ 21,960     $ 2,113  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation of property and equipment

            

Recovery Audit Services - Americas

   $ 1,719     $ 779     $ 940     $ 2,616     $ 1,689     $ 927  

Recovery Audit Services - Europe/Asia-Pacific

     206       152       54       348       292       56  

Adjacent Services

     435       178       257       619       348       271  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 2,360     $ 1,109     $ 1,251     $ 3,583     $ 2,329     $ 1,254  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Amortization of intangible assets

            

Recovery Audit Services - Americas

   $ 436     $ 328     $ 108     $ 773     $ 657     $ 116  

Recovery Audit Services - Europe/Asia-Pacific

     38       —         38       99       —         99  

Adjacent Services

     390       394       (4     780       787       (7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 864     $ 722     $ 142     $ 1,652     $ 1,444     $ 208  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

            

Recovery Audit Services - Americas

   $ 4,747     $ 5,507     $ (760   $ 10,529     $ 11,330     $ (801

Recovery Audit Services - Europe/Asia-Pacific

     2,630       2,118       512       3,998       2,276       1,722  

Adjacent Services

     (1,045     (1,911     866       (2,775     (3,852     1,077  

Corporate

     (7,652     (6,064     (1,588     (14,423     (12,039     (2,384
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (1,320   $ (350   $ (970   $ (2,671   $ (2,285   $ (386
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

            

Recovery Audit Services - Americas

   $ 7,388     $ 6,802     $ 586     $ 14,467     $ 13,940     $ 527  

Recovery Audit Services - Europe/Asia-Pacific

     3,346       2,354       992       5,460       2,790       2,670  

Adjacent Services

     (220     (1,293     1,073       (1,308     (2,672     1,364  

Corporate

     (6,422     (4,379     (2,043     (11,248     (8,417     (2,831
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 4,092     $ 3,484     $ 608     $ 7,371     $ 5,641     $ 1,730  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

*

The Recovery Audit Services - Americas segment represents recovery audit services provided in the United States, Canada and Latin America. The Recovery Audit Services - Europe/Asia-Pacific segment represents recovery audit services provided in Europe, Asia and the Pacific region. The Adjacent Services segment represents advisory analytics and supplier information management services.