CSG Systems International Reports Fourth Quarter and Full Year 2024 Results
CSG Systems International reported strong Q4 2024 results with record quarterly revenue of $316.7 million, up 6.5% year-over-year. Full-year 2024 revenue reached $1.20 billion, a 2.4% increase from 2023.
The company achieved notable financial metrics including Q4 GAAP operating income of $42.3 million (13.4% margin) and non-GAAP operating income of $58.3 million (20.1% margin). Full-year operating cash flow was $135.7 million, with non-GAAP adjusted free cash flow of $113.3 million, up 9% YoY.
CSG increased its dividend payout by 7% for 2025, marking the 12th consecutive year of increases. The company targets $100+ million in shareholder remuneration via dividends and buybacks in 2025. For 2025, CSG projects revenue between $1.21-1.25 billion with non-GAAP operating margins of 18.1-18.5% and adjusted free cash flow of $110-150 million.
CSG Systems International ha riportato risultati solidi per il quarto trimestre del 2024, con ricavi trimestrali record pari a 316,7 milioni di dollari, in aumento del 6,5% rispetto all'anno precedente. I ricavi dell'intero anno 2024 hanno raggiunto 1,20 miliardi di dollari, con un incremento del 2,4% rispetto al 2023.
L'azienda ha ottenuto metriche finanziarie notevoli, tra cui un reddito operativo GAAP del quarto trimestre di 42,3 milioni di dollari (margine del 13,4%) e un reddito operativo non GAAP di 58,3 milioni di dollari (margine del 20,1%). Il flusso di cassa operativo per l'intero anno è stato di 135,7 milioni di dollari, con un flusso di cassa libero rettificato non GAAP di 113,3 milioni di dollari, in aumento del 9% rispetto all'anno precedente.
CSG ha aumentato il proprio dividendo del 7% per il 2025, segnando il 12° anno consecutivo di aumenti. L'azienda punta a oltre 100 milioni di dollari in rimborso agli azionisti tramite dividendi e riacquisti nel 2025. Per il 2025, CSG prevede ricavi compresi tra 1,21 e 1,25 miliardi di dollari, con margini operativi non GAAP del 18,1-18,5% e flusso di cassa libero rettificato di 110-150 milioni di dollari.
CSG Systems International reportó resultados sólidos para el cuarto trimestre de 2024, con ingresos trimestrales récord de 316.7 millones de dólares, un aumento del 6.5% en comparación con el año anterior. Los ingresos del año completo 2024 alcanzaron 1.20 mil millones de dólares, un incremento del 2.4% respecto a 2023.
La compañía logró métricas financieras notables, incluyendo un ingreso operativo GAAP del cuarto trimestre de 42.3 millones de dólares (margen del 13.4%) y un ingreso operativo no GAAP de 58.3 millones de dólares (margen del 20.1%). El flujo de caja operativo del año completo fue de 135.7 millones de dólares, con un flujo de caja libre ajustado no GAAP de 113.3 millones de dólares, un aumento del 9% interanual.
CSG aumentó su pago de dividendos en un 7% para 2025, marcando el duodécimo año consecutivo de aumentos. La empresa apunta a más de 100 millones de dólares en remuneración a los accionistas mediante dividendos y recompra de acciones en 2025. Para 2025, CSG proyecta ingresos entre 1.21 y 1.25 mil millones de dólares, con márgenes operativos no GAAP del 18.1-18.5% y un flujo de caja libre ajustado de 110-150 millones de dólares.
CSG Systems International는 2024년 4분기 실적이 강세를 보였으며, 분기별 매출이 3억 1,670만 달러로 기록을 세우며 전년 대비 6.5% 증가했다고 보고했습니다. 2024년 전체 매출은 12억 달러에 달해 2023년 대비 2.4% 증가했습니다.
회사는 4분기 GAAP 영업 수익이 4,230만 달러(13.4% 마진)였고, 비 GAAP 영업 수익은 5,830만 달러(20.1% 마진)에 달하는 등 주목할 만한 재무 지표를 달성했습니다. 연간 운영 현금 흐름은 1억 3,570만 달러였으며, 비 GAAP 조정 자유 현금 흐름은 1억 1,330만 달러로, 전년 대비 9% 증가했습니다.
CSG는 2025년 배당금을 7% 인상하여 12년 연속 증가를 기록했습니다. 회사는 2025년에 배당금과 자사주 매입을 통해 1억 달러 이상의 주주 보상 목표를 가지고 있습니다. 2025년을 위해 CSG는 12억 1천만 달러에서 12억 5천만 달러 사이의 매출과 비 GAAP 영업 마진 18.1-18.5%, 조정 자유 현금 흐름 1억 1천만 달러에서 1억 5천만 달러를 예상하고 있습니다.
CSG Systems International a annoncé de solides résultats pour le quatrième trimestre 2024, avec des revenus trimestriels records atteignant 316,7 millions de dollars, en hausse de 6,5 % par rapport à l'année précédente. Les revenus de l'année 2024 ont atteint 1,20 milliard de dollars, soit une augmentation de 2,4 % par rapport à 2023.
L'entreprise a obtenu des indicateurs financiers notables, y compris un revenu d'exploitation GAAP de 42,3 millions de dollars au quatrième trimestre (marge de 13,4 %) et un revenu d'exploitation non GAAP de 58,3 millions de dollars (marge de 20,1 %). Le flux de trésorerie d'exploitation pour l'année entière était de 135,7 millions de dollars, avec un flux de trésorerie libre ajusté non GAAP de 113,3 millions de dollars, en hausse de 9 % d'une année sur l'autre.
CSG a augmenté son dividende de 7 % pour 2025, marquant la 12e année consécutive d'augmentation. L'entreprise vise plus de 100 millions de dollars de rémunération pour les actionnaires grâce à des dividendes et des rachats d'actions en 2025. Pour 2025, CSG prévoit des revenus compris entre 1,21 et 1,25 milliard de dollars, avec des marges d'exploitation non GAAP de 18,1 à 18,5 % et un flux de trésorerie libre ajusté de 110 à 150 millions de dollars.
CSG Systems International berichtete über starke Ergebnisse im 4. Quartal 2024 mit einem Rekordumsatz von 316,7 Millionen Dollar, was einem Anstieg von 6,5 % im Jahresvergleich entspricht. Der Umsatz für das Gesamtjahr 2024 erreichte 1,20 Milliarden Dollar, ein Anstieg von 2,4 % gegenüber 2023.
Das Unternehmen erzielte bemerkenswerte finanzielle Kennzahlen, darunter ein GAAP-Betriebsgewinn im 4. Quartal von 42,3 Millionen Dollar (Marge von 13,4 %) und ein Non-GAAP-Betriebsgewinn von 58,3 Millionen Dollar (Marge von 20,1 %). Der Betriebscashflow des gesamten Jahres betrug 135,7 Millionen Dollar, und der bereinigte freie Cashflow nach Non-GAAP belief sich auf 113,3 Millionen Dollar, was einem Anstieg von 9 % im Jahresvergleich entspricht.
CSG erhöhte seine Dividende für 2025 um 7 %, was das 12. Jahr in Folge mit Erhöhungen darstellt. Das Unternehmen zielt darauf ab, im Jahr 2025 über 100 Millionen Dollar an Aktionärsrenditen durch Dividenden und Aktienrückkäufe zu erzielen. Für 2025 prognostiziert CSG einen Umsatz zwischen 1,21 und 1,25 Milliarden Dollar mit Non-GAAP-Betriebsarten von 18,1–18,5 % und einem bereinigten freien Cashflow von 110–150 Millionen Dollar.
- Record quarterly revenue of $316.7M in Q4 2024, up 6.5% YoY
- Full-year revenue growth of 2.4% to $1.20B
- Q4 non-GAAP operating margin improved to 20.1% from 16.1% YoY
- Operating cash flow increased to $135.7M with $113.3M free cash flow, up 9% YoY
- 7% dividend increase announced for 2025
- Contract expansion with Comcast through 2030
- 30% revenue diversification from faster growth industry verticals
- Software and services revenue declined year-over-year
Insights
CSG Systems delivered exceptional Q4 2024 results that underscore its successful business transformation and operational efficiency initiatives. The record quarterly revenue of
Three key strategic developments stand out: First, the Comcast contract extension through 2030 provides important revenue visibility and validates CSG's core service offerings. Second, multiple Ascendon cloud wins highlight the company's successful expansion into higher-growth verticals, with
The 2025 guidance of
Reported Record Quarterly Revenue of
Achieved or Exceeded All Profitability and Cash Flow Guidance Targets in 2024
2024 Operating Cash Flow of
Dividend Payout Increased
Financial Results:
Fourth quarter 2024 financial results:
-
Total revenue was
$316.7 million -
GAAP operating income was
$42.3 million 13.4% , and non-GAAP operating income was$58.3 million 20.1% . -
GAAP earnings per diluted share (EPS) was
$1.21 $1.65 -
Cash flows from operations were
$82.5 million $76.6 million
Full year 2024 financial results:
-
Total revenue was
$1.20 billion -
GAAP operating income was
$131.3 million 11.0% , and non-GAAP operating income was$199.4 million 18.1% . -
GAAP EPS was
$3.03 $4.72 -
Cash flows from operations were
$135.7 $113.3 million
Shareholder Returns:
-
CSG declared its quarterly cash dividend of
$0.30 $8 million $35 million -
In January 2025, CSG’s Board of Directors approved a
7% increase in CSG’s cash dividend, with quarterly payments of$0.32 -
During the fourth quarter and full year 2024, CSG repurchased under its stock repurchase program, approximately 468,000 shares of its common stock for approximately
$24 million $58 million
“Team CSG delivered excellent fourth quarter results and built significant momentum for 2025,” said Brian Shepherd, President and Chief Executive Officer of CSG. “It was great to see
Financial Overview (unaudited)
(in thousands, except per share amounts and percentages):
|
|
Quarter Ended December 31, |
|
Year Ended December 31, |
|||||||||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
Percent
|
|
|
2024 |
|
|
2023 |
|
|
Percent
|
|
|||||||
GAAP Results: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
316,652 |
|
|
$ |
297,324 |
|
|
|
6.5 |
% |
|
$ |
1,197,248 |
|
|
$ |
1,169,258 |
|
|
|
2.4 |
% |
|
Operating Income |
|
|
42,294 |
|
|
|
24,747 |
|
|
|
70.9 |
% |
|
|
131,333 |
|
|
|
123,877 |
|
|
|
6.0 |
% |
|
Operating Margin Percentage |
|
|
13.4 |
% |
|
|
8.3 |
% |
|
|
|
|
|
|
11.0 |
% |
|
|
10.6 |
% |
|
|
|
|
|
EPS |
|
$ |
1.21 |
|
|
$ |
0.44 |
|
|
|
175.0 |
% |
|
$ |
3.03 |
|
|
$ |
2.20 |
|
|
|
37.7 |
% |
|
Non-GAAP Results: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
58,347 |
|
|
$ |
44,063 |
|
|
|
32.4 |
% |
|
$ |
199,432 |
|
|
$ |
185,727 |
|
|
|
7.4 |
% |
|
Adjusted Operating Margin Percentage |
|
|
20.1 |
% |
|
|
16.1 |
% |
|
|
|
|
|
|
18.1 |
% |
|
|
17.2 |
% |
|
|
|
|
|
EPS |
|
$ |
1.65 |
|
|
$ |
0.92 |
|
|
|
79.3 |
% |
|
$ |
4.72 |
|
|
$ |
3.69 |
|
|
|
27.9 |
% |
|
For additional information and reconciliations regarding CSG’s use of non-GAAP financial measures, please refer to the attached Exhibit 2 and the Investor Relations section of CSG’s website at csgi.com.
Results of Operations
GAAP Results: Total revenue for the fourth quarter of 2024 was
GAAP operating income for the fourth quarter of 2024 was
GAAP EPS for the fourth quarter of 2024 was
Non-GAAP Results: Non-GAAP operating income for the fourth quarter of 2024 was
Non-GAAP EPS for the fourth quarter of 2024 was
Balance Sheet and Cash Flows
Cash and cash equivalents as of December 31, 2024 were
Summary of Financial Guidance
CSG’s financial guidance for the full year 2025 is as follows:
GAAP Measures: |
|
|
|
Revenue |
|
1,210 - 1,250 million |
|
Non-GAAP Measures: |
|
|
|
Adjusted Operating Margin Percentage |
|
|
|
EPS |
|
|
|
Adjusted EBITDA |
|
|
|
Adjusted Free Cash Flow |
|
|
|
For additional information and reconciliations regarding CSG’s use of non-GAAP financial measures, please refer to the attached Exhibit 2 and the Investor Relations section of CSG’s website at csgi.com.
Conference Call
CSG will host a conference call on Wednesday, February 5, 2025 at 5:00 p.m. ET, to discuss CSG’s fourth quarter and full year 2024 earnings results. The call will be carried live and archived on CSG’s website. A link to the conference call is available at http://ir.csgi.com. In addition, to reach the conference by phone, call 1-888-412-4131 and use the passcode 2327393.
Additional Information
For information about CSG, please visit CSG’s website at csgi.com. Additional information can be found in the Investor Relations section of the website.
About CSG
CSG empowers companies to build unforgettable experiences, making it easier for people and businesses to connect with, use and pay for the services they value most. Our customer experience, billing and payments solutions help companies of any size make money and make a difference. With our SaaS solutions, company leaders can take control of their future and tap into guidance along the way from our fiercely committed and forward-thinking CSGers around the world.
Want to be future-ready and a change-maker like the global brands that trust CSG? Visit csgi.com to learn more.
Forward-Looking Statements
This news release contains forward-looking statements as defined under the Securities Act of 1933, as amended, that are based on assumptions about a number of important factors and involve risks and uncertainties that could cause actual results to differ materially from what appears in this news release. Some of these key factors include, but are not limited to the following items:
- CSG derives a significant portion of its revenue from a limited number of customers, with approximately forty percent of its revenue from its two largest customers;
- Fluctuations in credit market conditions, general global economic and political conditions, and foreign currency exchange rates;
- CSG’s ability to maintain a reliable, secure computing environment;
- Continued market acceptance of CSG’s products and services;
- CSG’s ability to continuously develop and enhance products in a timely, cost-effective, technically advanced and competitive manner;
- CSG’s ability to deliver its solutions in a timely fashion within budget, particularly large and complex software implementations;
- CSG’s dependency on the global telecommunications industry, and in particular, the North American telecommunications industry;
- CSG’s ability to meet its financial expectations;
- Increasing competition in CSG’s market from companies of greater size and with broader presence;
- CSG’s ability to successfully integrate and manage acquired businesses or assets to achieve expected strategic, operating and financial goals;
- CSG’s ability to protect its intellectual property rights;
- CSG’s ability to conduct business in the international marketplace;
-
CSG’s ability to comply with applicable
U.S. and International laws and regulations; and - CSG’s business may be disrupted, and its results of operations and cash flows adversely affected by a global pandemic.
This list is not exhaustive, and readers are encouraged to review the additional risks and important factors described in CSG’s reports on Forms 10-K and 10-Q and other filings made with the SEC.
CSG SYSTEMS INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS-UNAUDITED (in thousands) |
||||||||
|
|
December 31,
|
|
December 31,
|
||||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
161,789 |
|
|
$ |
186,264 |
|
Settlement and merchant reserve assets |
|
|
343,235 |
|
|
|
274,699 |
|
Trade accounts receivable: |
|
|
|
|
|
|
||
Billed, net of allowance of |
|
|
266,903 |
|
|
|
267,680 |
|
Unbilled |
|
|
80,173 |
|
|
|
82,163 |
|
Income taxes receivable |
|
|
2,600 |
|
|
|
1,345 |
|
Other current assets |
|
|
46,182 |
|
|
|
50,075 |
|
Total current assets |
|
|
900,882 |
|
|
|
862,226 |
|
Non-current assets: |
|
|
|
|
|
|
||
Property and equipment, net of depreciation of |
|
|
56,595 |
|
|
|
65,545 |
|
Operating lease right-of-use assets |
|
|
24,166 |
|
|
|
34,283 |
|
Software, net of amortization of |
|
|
19,927 |
|
|
|
14,224 |
|
Goodwill |
|
|
316,041 |
|
|
|
308,596 |
|
Acquired customer contracts, net of amortization of |
|
|
39,377 |
|
|
|
35,879 |
|
Customer contract costs, net of amortization of |
|
|
60,809 |
|
|
|
54,421 |
|
Deferred income taxes |
|
|
73,295 |
|
|
|
57,855 |
|
Other assets |
|
|
9,595 |
|
|
|
10,017 |
|
Total non-current assets |
|
|
599,805 |
|
|
|
580,820 |
|
Total assets |
|
$ |
1,500,687 |
|
|
$ |
1,443,046 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Current portion of long-term debt |
|
$ |
7,500 |
|
|
$ |
7,500 |
|
Operating lease liabilities |
|
|
11,067 |
|
|
|
15,946 |
|
Customer deposits |
|
|
41,448 |
|
|
|
41,035 |
|
Trade accounts payable |
|
|
36,370 |
|
|
|
46,406 |
|
Accrued employee compensation |
|
|
67,944 |
|
|
|
84,380 |
|
Settlement and merchant reserve liabilities |
|
|
341,924 |
|
|
|
273,817 |
|
Deferred revenue |
|
|
54,424 |
|
|
|
54,199 |
|
Income taxes payable |
|
|
7,802 |
|
|
|
4,104 |
|
Other current liabilities |
|
|
46,730 |
|
|
|
33,449 |
|
Total current liabilities |
|
|
615,209 |
|
|
|
560,836 |
|
Non-current liabilities: |
|
|
|
|
|
|
||
Long-term debt, net of unamortized discounts of |
|
|
530,997 |
|
|
|
534,997 |
|
Operating lease liabilities |
|
|
25,020 |
|
|
|
34,360 |
|
Deferred revenue |
|
|
26,469 |
|
|
|
23,447 |
|
Income taxes payable |
|
|
2,732 |
|
|
|
3,041 |
|
Deferred income taxes |
|
|
94 |
|
|
|
123 |
|
Other non-current liabilities |
|
|
17,597 |
|
|
|
12,916 |
|
Total non-current liabilities |
|
|
602,909 |
|
|
|
608,884 |
|
Total liabilities |
|
|
1,218,118 |
|
|
|
1,169,720 |
|
Stockholders' equity: |
|
|
|
|
|
|
||
Preferred stock, par value |
|
|
- |
|
|
|
- |
|
Common stock, par value |
|
|
718 |
|
|
|
713 |
|
Additional paid-in capital |
|
|
518,215 |
|
|
|
490,947 |
|
Treasury stock, at cost; 41,583 and 40,398 shares |
|
|
(1,194,224 |
) |
|
|
(1,136,055 |
) |
Accumulated other comprehensive income (loss): |
|
|
|
|
|
|
||
Unrealized gain on short-term investments, net of tax |
|
|
- |
|
|
|
1 |
|
Cumulative foreign currency translation adjustments |
|
|
(62,290 |
) |
|
|
(50,414 |
) |
Accumulated earnings |
|
|
1,020,150 |
|
|
|
968,134 |
|
Total stockholders' equity |
|
|
282,569 |
|
|
|
273,326 |
|
Total liabilities and stockholders' equity |
|
$ |
1,500,687 |
|
|
$ |
1,443,046 |
|
CSG SYSTEMS INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME-UNAUDITED (in thousands, except per share amounts) |
||||||||||||||||
|
Quarter Ended |
|
Year Ended |
|
||||||||||||
|
December 31, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
|
||||||||
Revenue |
$ |
316,652 |
|
|
$ |
297,324 |
|
|
$ |
1,197,248 |
|
|
$ |
1,169,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenue (exclusive of depreciation, shown separately below) |
|
154,197 |
|
|
|
156,145 |
|
|
|
614,463 |
|
|
|
615,042 |
|
|
Other operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research and development |
|
42,023 |
|
|
|
35,800 |
|
|
|
158,194 |
|
|
|
143,201 |
|
|
Selling, general and administrative |
|
71,519 |
|
|
|
66,683 |
|
|
|
258,313 |
|
|
|
247,613 |
|
|
Depreciation |
|
5,336 |
|
|
|
6,034 |
|
|
|
21,622 |
|
|
|
23,189 |
|
|
Restructuring and reorganization charges |
|
1,283 |
|
|
|
7,915 |
|
|
|
13,323 |
|
|
|
16,336 |
|
|
Total operating expenses |
|
274,358 |
|
|
|
272,577 |
|
|
|
1,065,915 |
|
|
|
1,045,381 |
|
|
Operating income |
|
42,294 |
|
|
|
24,747 |
|
|
|
131,333 |
|
|
|
123,877 |
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
(7,487 |
) |
|
|
(8,084 |
) |
|
|
(30,469 |
) |
|
|
(31,176 |
) |
|
Interest income |
|
2,044 |
|
|
|
1,820 |
|
|
|
8,685 |
|
|
|
4,336 |
|
|
Other, net |
|
4,178 |
|
|
|
(1,639 |
) |
|
|
2,723 |
|
|
|
(4,686 |
) |
|
Total other |
|
(1,265 |
) |
|
|
(7,903 |
) |
|
|
(19,061 |
) |
|
|
(31,526 |
) |
|
Income before income taxes |
|
41,029 |
|
|
|
16,844 |
|
|
|
112,272 |
|
|
|
92,351 |
|
|
Income tax provision |
|
(6,561 |
) |
|
|
(4,174 |
) |
|
|
(25,420 |
) |
|
|
(26,105 |
) |
|
Net income |
$ |
34,468 |
|
|
$ |
12,670 |
|
|
$ |
86,852 |
|
|
$ |
66,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
27,957 |
|
|
|
28,607 |
|
|
|
28,345 |
|
|
|
29,938 |
|
|
Diluted |
|
28,523 |
|
|
|
28,842 |
|
|
|
28,665 |
|
|
|
30,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
$ |
1.23 |
|
|
$ |
0.44 |
|
|
$ |
3.06 |
|
|
$ |
2.21 |
|
|
Diluted |
|
1.21 |
|
|
|
0.44 |
|
|
|
3.03 |
|
|
|
2.20 |
|
|
CSG SYSTEMS INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-UNAUDITED (in thousands) |
||||||||
|
Year Ended |
|
||||||
|
December 31, 2024 |
|
December 31, 2023 |
|
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
$ |
86,852 |
|
|
$ |
66,246 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities- |
|
|
|
|
|
|
||
Depreciation |
|
22,061 |
|
|
|
23,585 |
|
|
Amortization |
|
50,447 |
|
|
|
47,667 |
|
|
Asset impairments |
|
717 |
|
|
|
2,061 |
|
|
Gain on lease modifications |
|
(174 |
) |
|
|
(4,349 |
) |
|
(Gain) loss on unrealized foreign currency transactions and other, net |
|
(525 |
) |
|
|
225 |
|
|
Deferred income taxes |
|
(16,503 |
) |
|
|
(23,560 |
) |
|
Stock-based compensation |
|
33,564 |
|
|
|
28,990 |
|
|
Subtotal |
|
176,439 |
|
|
|
140,865 |
|
|
Changes in operating assets and liabilities, net of acquired amounts: |
|
|
|
|
|
|
||
Trade accounts receivable, net |
|
4,134 |
|
|
|
(22,401 |
) |
|
Other current and non-current assets and liabilities |
|
(13,042 |
) |
|
|
(6,566 |
) |
|
Income taxes payable/receivable |
|
2,126 |
|
|
|
(1,849 |
) |
|
Trade accounts payable and accrued liabilities |
|
(38,486 |
) |
|
|
12,541 |
|
|
Deferred revenue |
|
4,546 |
|
|
|
9,306 |
|
|
Net cash provided by operating activities |
|
135,717 |
|
|
|
131,896 |
|
|
|
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of software, property, and equipment |
|
(22,421 |
) |
|
|
(27,977 |
) |
|
Proceeds from sale/maturity of short-term investments |
|
- |
|
|
|
71 |
|
|
Business combinations, net of cash and settlement assets acquired of |
|
17,293 |
|
|
|
- |
|
|
Net cash used in investing activities |
|
(5,128 |
) |
|
|
(27,906 |
) |
|
|
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from issuance of common stock |
|
3,072 |
|
|
|
3,284 |
|
|
Payments of cash dividends |
|
(26,608 |
) |
|
|
(33,930 |
) |
|
Repurchases of common stock |
|
(67,745 |
) |
|
|
(127,065 |
) |
|
Deferred acquisition payments |
|
(2,488 |
) |
|
|
(3,220 |
) |
|
Proceeds from long-term debt |
|
15,000 |
|
|
|
470,000 |
|
|
Payments on long-term debt |
|
(22,500 |
) |
|
|
(327,500 |
) |
|
Purchase of capped call transactions related to convertible notes |
|
- |
|
|
|
(34,298 |
) |
|
Payments of deferred financing costs |
|
- |
|
|
|
(14,539 |
) |
|
Payments on financing obligations |
|
(2,538 |
) |
|
|
- |
|
|
Settlement and merchant reserve activity |
|
23,884 |
|
|
|
35,963 |
|
|
Net cash used in financing activities |
|
(79,923 |
) |
|
|
(31,305 |
) |
|
Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash |
|
(7,779 |
) |
|
|
2,173 |
|
|
|
|
|
|
|
|
|
||
Net increase in cash, cash equivalents, and restricted cash |
|
42,887 |
|
|
|
74,858 |
|
|
|
|
|
|
|
|
|
||
Cash, cash equivalents, and restricted cash, beginning of period |
|
463,876 |
|
|
|
389,018 |
|
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
506,763 |
|
|
$ |
463,876 |
|
|
|
|
|
|
|
|
|
||
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
||
Cash paid during the period for - |
|
|
|
|
|
|
||
Interest |
$ |
27,119 |
|
|
$ |
24,730 |
|
|
Income taxes |
|
39,944 |
|
|
|
51,675 |
|
|
|
|
|
|
|
|
|
||
Non-cash investing and financing activities- |
|
|
|
|
|
|
||
Software, property, and equipment included in current and noncurrent liabilities |
|
8,469 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
||
Reconciliation of cash, cash equivalents, and restricted cash: |
|
|
|
|
|
|
||
Cash and cash equivalents |
$ |
161,789 |
|
|
$ |
186,264 |
|
|
Settlement and merchant reserve assets |
|
343,235 |
|
|
|
274,699 |
|
|
Restricted cash included in current and non-current assets |
|
1,739 |
|
|
|
2,913 |
|
|
Total cash, cash equivalents, and restricted cash |
$ |
506,763 |
|
$ |
463,876 |
|
||
EXHIBIT 1 CSG SYSTEMS INTERNATIONAL, INC. SUPPLEMENTAL REVENUE ANALYSIS |
||||||||||||||||||||||||
Revenue by Significant Customers: |
||||||||||||||||||||||||
|
|
Quarter Ended |
|
|
Quarter Ended |
|
|
Quarter Ended |
|
|||||||||||||||
|
|
December 31, 2024 |
|
|
September 30, 2024 |
|
|
December 31, 2023 |
|
|||||||||||||||
|
|
Amount |
|
|
% of Revenue |
|
|
Amount |
|
|
% of Revenue |
|
|
Amount |
|
|
% of Revenue |
|
||||||
Charter |
|
$ |
59,733 |
|
|
|
19 |
% |
|
$ |
59,070 |
|
|
|
20 |
% |
|
$ |
60,128 |
|
|
|
20 |
% |
Comcast |
|
|
58,935 |
|
|
|
19 |
% |
|
|
58,688 |
|
|
|
20 |
% |
|
|
54,651 |
|
|
|
18 |
% |
|
|
Year Ended |
|
|
Year Ended |
|
|
|||||||||||||||||
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
|
|||||||||||||||||
|
|
Amount |
|
|
% of Revenue |
|
|
Amount |
|
|
% of Revenue |
|
|
|||||||||||
Charter |
|
$ |
240,281 |
|
|
|
20 |
% |
|
$ |
241,267 |
|
|
|
21 |
% |
|
|||||||
Comcast |
|
|
225,004 |
|
|
|
19 |
% |
|
|
215,476 |
|
|
|
18 |
% |
|
|||||||
Revenue by Vertical
|
|
Quarter Ended |
|
|
Quarter Ended |
|
|
Quarter Ended |
|
|||
|
|
December 31, 2024 |
|
|
September 30, 2024 |
|
|
December 31, 2023 |
|
|||
Broadband/Cable/Satellite |
|
|
51 |
% |
|
|
53 |
% |
|
|
51 |
% |
Telecommunications |
|
|
20 |
% |
|
|
18 |
% |
|
|
21 |
% |
All other |
|
|
29 |
% |
|
|
29 |
% |
|
|
28 |
% |
Total revenue |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
Year Ended |
|
|
Year Ended |
|
|
|
|
|
||
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
|
|
|
|
||
Broadband/Cable/Satellite |
|
|
52 |
% |
|
|
52 |
% |
||||
Telecommunications |
|
|
18 |
% |
|
|
20 |
% |
||||
All other |
|
|
30 |
% |
|
|
28 |
% |
||||
Total revenue |
|
|
100 |
% |
|
|
100 |
% |
||||
Revenue by Geography
|
|
Quarter Ended |
|
|
Quarter Ended |
|
|
Quarter Ended |
|
|||
|
|
December 31, 2024 |
|
|
September 30, 2024 |
|
|
December 31, 2023 |
|
|||
|
|
|
84 |
% |
|
|
88 |
% |
|
|
85 |
% |
|
|
|
10 |
% |
|
|
9 |
% |
|
|
10 |
% |
|
|
|
6 |
% |
|
|
3 |
% |
|
|
5 |
% |
Total revenue |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
Year Ended |
|
|
Year Ended |
|
|
|
|
|
||
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
|
|
|
|
||
|
|
|
87 |
% |
|
|
86 |
% |
||||
|
|
|
9 |
% |
|
|
10 |
% |
||||
|
|
|
4 |
% |
|
|
4 |
% |
||||
Total revenue |
|
|
100 |
% |
|
|
100 |
% |
||||
EXHIBIT 2
CSG SYSTEMS INTERNATIONAL, INC.
DISCLOSURES FOR NON-GAAP FINANCIAL MEASURES
Use of Non-GAAP Financial Measures and Limitations
To supplement its condensed consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), CSG uses non-GAAP operating income, non-GAAP adjusted operating margin percentage, non-GAAP EPS, non-GAAP adjusted EBITDA, and non-GAAP adjusted free cash flow. CSG believes that these non-GAAP financial measures, when reviewed in conjunction with its GAAP financial measures, provide investors with greater transparency to the information used by CSG’s management in its financial and operational decision making. CSG uses these non-GAAP financial measures for the following purposes:
- Certain internal financial planning, reporting, and analysis;
- Forecasting and budgeting;
- Certain management compensation incentives; and
- Communications with CSG’s Board of Directors, stockholders, financial analysts, and investors.
These non-GAAP financial measures are provided with the intent of providing investors with the following information:
- A more complete understanding of CSG’s underlying operational results, trends, and cash generating capabilities;
- Consistency and comparability with CSG’s historical financial results; and
- Comparability to similar companies, many of which present similar non-GAAP financial measures to investors.
Non-GAAP financial measures are not measures of performance under GAAP, and therefore should not be considered in isolation or as a substitute for GAAP financial information. Limitations with the use of non-GAAP financial measures include the following items:
- Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles;
- The way in which CSG calculates non-GAAP financial measures may differ from the way in which other companies calculate similar non-GAAP financial measures;
- Non-GAAP financial measures do not include all items of income and expense that affect CSG’s operations and that are required by GAAP to be included in financial statements;
- Certain adjustments to CSG’s non-GAAP financial measures result in the exclusion of items that are recurring and will be reflected in CSG’s financial statements in future periods; and
- Certain charges excluded from CSG’s non-GAAP financial measures are cash expenses, and therefore do impact CSG’s cash position.
CSG compensates for these limitations by relying primarily on its GAAP results and using non-GAAP financial measures as a supplement only. Additionally, CSG provides specific information regarding the treatment of GAAP amounts considered in preparing the non-GAAP financial measures and reconciles each non-GAAP financial measure to the most directly comparable GAAP measure.
Non-GAAP Financial Measures: Basis of Presentation
The table below outlines the exclusions from CSG’s non-GAAP financial measures:
Non-GAAP Exclusions |
|
Operating Income |
|
Adjusted Operating Margin Percentage |
|
EPS |
Transaction fees |
|
— |
|
X |
|
— |
Restructuring and reorganization charges |
|
X |
|
X |
|
X |
Executive transition costs |
|
X |
|
X |
|
X |
Acquisition-related expenses: |
|
|
|
|
|
|
Amortization of acquired intangible assets |
|
X |
|
X |
|
X |
Earn-out compensation |
|
X |
|
X |
|
X |
Transaction-related costs |
|
X |
|
X |
|
X |
Stock-based compensation |
|
X |
|
X |
|
X |
Gain (loss) on debt extinguishment/conversion |
|
— |
|
— |
|
X |
Gain (loss) on acquisitions or dispositions |
|
— |
|
— |
|
X |
Unusual income tax matters |
|
— |
|
— |
|
X |
CSG believes that excluding certain items in calculating its non-GAAP financial measures provides meaningful supplemental information regarding CSG’s performance and these items are excluded for the following reasons:
- Transaction fees are primarily comprised of fees paid to third-party payment processors and financial institutions and interchange fees under CSG’s payment services contracts. Transaction fees are included in revenue in CSG’s Income Statement (and not netted against revenue) because CSG maintains control and acts as principal over the integrated service provided under its payment services customer contracts. However, CSG excludes expense associated with transaction fees from the numerator and denominator in calculating its non-GAAP adjusted operating margin percentage in order to provide comparability with historical and future periods and with its peer group and competitors.
- Restructuring and reorganization charges are expenses that result from cost reduction initiatives and/or significant changes to CSG’s business, to include such things as involuntary employee terminations, changes in management structure, divestitures of businesses, facility consolidations and abandonments, and fundamental reorganizations impacting operational focus and direction. These charges are not considered reflective of CSG’s recurring business operating results. The exclusion of these items in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to compare CSG’s current financial results with historical and future periods.
- Executive transition costs include expenses incurred related to a departure of a CSG executive officer under the terms of the related separation agreement. These types of costs are not considered reflective of CSG’s recurring business operating results. The exclusion of these costs in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to compare CSG’s current financial results with historical and future periods.
- Acquisition-related expenses include amortization of acquired intangible assets, earn-out compensation, and transaction-related costs. Transaction-related costs, which typically include expenses related to legal, accounting, and other professional services, are direct and incremental expenses related to business acquisitions, and thus, are not considered reflective of CSG’s recurring business operating results. The total amount of acquisition-related expenses can vary significantly between periods based on the number and size of acquisition activities, previously acquired intangible assets becoming fully amortized, and ultimate realization of earn-out compensation. In addition, the timing of these expenses may not directly correlate with underlying performance of the CSG’s operations. Therefore, the exclusion of acquisition-related expenses in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to compare CSG’s current financial results with historical and future periods.
- Stock-based compensation results from CSG’s issuance of equity awards to its employees under incentive compensation programs. The amount of this incentive compensation in any period is not generally linked to the level of performance by employees or CSG. The exclusion of these expenses in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to evaluate the non-cash expense related to compensation included in CSG’s results of operations, and therefore, the exclusion of this item allows investors to further evaluate the cash generating capabilities of CSG’s business.
- Gains and losses related to the extinguishment/conversion of debt can be as a result of the refinancing of CSG’s credit agreement and/or repurchase, conversion, or settlement of CSG’s convertible notes. These activities, to include any derivative activity related to debt conversions, are not considered reflective of CSG’s recurring business operating results. Any resulting gain or loss is generally non-cash income or expense, and therefore, the exclusion of these items allows investors to further evaluate the cash impact of these activities for cash flow and liquidity purposes. In addition, the exclusion of these gains and losses in calculating CSG’s non-GAAP EPS allows management and investors an additional means to compare CSG’s current operating results with historical and future periods.
- Gains or losses related to the acquisition or disposition of certain of CSG’s business activities are not considered reflective of CSG’s recurring business operating results. Any resulting gain or loss is generally non-cash income or expense, and therefore, the exclusion of these items allows investors to further evaluate the cash impact of these activities for cash flow and liquidity purposes. In addition, the exclusion of these gains and losses in calculating CSG’s non-GAAP EPS allows management and investors an additional means to compare CSG’s current operating results with historical and future periods.
- Unusual items within CSG’s quarterly and/or annual income tax expense can occur from such things as income tax accounting timing matters, income taxes related to unusual events, or as a result of different treatment of certain items for book accounting and income tax purposes. Consideration of such items in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to compare CSG’s current financial results with historical and future periods
CSG also reports non-GAAP adjusted EBITDA and non-GAAP adjusted free cash flow. Management believes non-GAAP adjusted EBITDA is a useful measure to investors in evaluating CSG’s operating performance, debt servicing capabilities, and enterprise valuation. CSG defines non-GAAP adjusted EBITDA as income before interest, income taxes, depreciation, amortization, stock-based compensation, foreign currency transaction adjustments, acquisition-related expenses, and unusual items, such as restructuring and reorganization charges, executive transition costs, gains and losses related to the extinguishment of debt, and gains and losses on acquisitions or dispositions, as discussed above. Additionally, management uses non-GAAP adjusted free cash flow, among other measures, to assess its financial performance and cash generating capabilities, and believes that it is useful to investors because it shows CSG’s cash available to service debt, make strategic acquisitions and investments, repurchase its common stock, pay cash dividends, and fund ongoing operations. CSG defines non-GAAP adjusted free cash flow as net cash flows from operating activities before earn-out compensation payments related to acquisitions less the purchases of software, property and equipment.
Non-GAAP Financial Measures
Non-GAAP Operating Income and Non-GAAP Adjusted Operating Margin Percentage:
The reconciliation of GAAP operating income to non-GAAP operating income, and calculation of CSG’s non-GAAP adjusted operating margin percentage, for the indicated periods are as follows (in thousands, except percentages):
|
|
Quarter Ended
|
|
Year Ended
|
||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Non-GAAP Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
GAAP operating income |
|
$ |
42,294 |
|
|
$ |
24,747 |
|
|
$ |
131,333 |
|
|
$ |
123,877 |
|
Restructuring and reorganization charges (1) |
|
|
1,283 |
|
|
|
7,915 |
|
|
|
13,323 |
|
|
|
16,336 |
|
Executive transition costs |
|
|
- |
|
|
|
606 |
|
|
|
352 |
|
|
|
1,754 |
|
Acquisition-related expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Amortization of acquired intangible assets |
|
|
3,840 |
|
|
|
2,982 |
|
|
|
14,014 |
|
|
|
12,185 |
|
Earn-out compensation |
|
|
2,228 |
|
|
|
- |
|
|
|
5,644 |
|
|
|
(14 |
) |
Transaction-related costs |
|
|
138 |
|
|
|
(27 |
) |
|
|
381 |
|
|
|
2,109 |
|
Stock-based compensation (1) |
|
|
8,564 |
|
|
|
7,840 |
|
|
|
34,385 |
|
|
|
29,480 |
|
Non-GAAP operating income |
|
$ |
58,347 |
|
|
$ |
44,063 |
|
|
$ |
199,432 |
|
|
$ |
185,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Non-GAAP Adjusted Operating Margin Percentage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Revenue |
|
$ |
316,652 |
|
|
$ |
297,324 |
|
|
$ |
1,197,248 |
|
|
$ |
1,169,258 |
|
Less: Transaction fees (2) |
|
|
(26,064 |
) |
|
|
(23,967 |
) |
|
|
(97,857 |
) |
|
|
(87,430 |
) |
Revenue less transaction fees |
|
$ |
290,588 |
|
|
$ |
273,357 |
|
|
$ |
1,099,391 |
|
|
$ |
1,081,828 |
|
Non-GAAP adjusted operating margin percentage |
|
|
20.1 |
% |
|
|
16.1 |
% |
|
|
18.1 |
% |
|
|
17.2 |
% |
(1) |
Restructuring and reorganization charges include stock-based compensation, which is not included in the stock-based compensation line in the tables above and following, and depreciation, which has not been recorded to the depreciation line item on CSG’s Income Statement. |
(2) |
Transaction fees are primarily comprised of fees paid to third-party payment processors and financial institutions and interchange fees under CSG’s payment services contracts. Transaction fees are included in revenue in CSG's Income Statement (and not netted against revenue) because CSG maintains control and acts as principal over the integrated service provided under its payment services customer contracts. However, CSG excludes expense associated with transaction fees from the numerator and denominator in calculating its non-GAAP adjusted operating margin percentage in order to provide comparability with historical and future periods and with its peer group and competitors. |
Non-GAAP EPS:
The reconciliations of GAAP EPS to non-GAAP EPS for the indicated periods are as follows (in thousands, except per share amounts):
|
|
Quarter Ended |
|
|
Quarter Ended |
|
||||||||||
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
||||||||||
|
|
Amounts |
|
EPS (4) |
|
|
Amounts |
|
EPS (4) |
|
||||||
GAAP net income |
|
$ |
34,468 |
|
|
$ |
1.21 |
|
|
$ |
12,670 |
|
|
$ |
0.44 |
|
GAAP income tax provision (3) |
|
|
6,561 |
|
|
|
|
|
|
|
4,174 |
|
|
|
|
|
GAAP income before income taxes |
|
|
41,029 |
|
|
|
|
|
|
|
16,844 |
|
|
|
|
|
Restructuring and reorganization charges (1) |
|
|
1,283 |
|
|
|
|
|
|
|
7,915 |
|
|
|
|
|
Executive transition costs |
|
|
- |
|
|
|
|
|
|
|
606 |
|
|
|
|
|
Acquisition-related costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Amortization of acquired intangible assets |
|
|
3,840 |
|
|
|
|
|
|
|
2,982 |
|
|
|
|
|
Earn-out compensation |
|
|
2,228 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
Transaction-related costs |
|
|
138 |
|
|
|
|
|
|
|
(27 |
) |
|
|
|
|
Stock-based compensation (1) |
|
|
8,564 |
|
|
|
|
|
|
|
7,840 |
|
|
|
|
|
Non-GAAP income before income taxes |
|
|
57,082 |
|
|
|
|
|
|
|
36,160 |
|
|
|
|
|
Non-GAAP income tax provision (3) |
|
|
(9,956 |
) |
|
|
|
|
|
|
(9,535 |
) |
|
|
|
|
Non-GAAP net income |
|
$ |
47,126 |
|
|
$ |
1.65 |
|
|
$ |
26,625 |
|
|
$ |
0.92 |
|
|
|
Year Ended |
|
|
Year Ended |
|
||||||||||
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
||||||||||
|
|
Amounts |
|
EPS (4) |
|
|
Amounts |
|
EPS (4) |
|
||||||
GAAP net income |
|
$ |
86,852 |
|
|
$ |
3.03 |
|
|
$ |
66,246 |
|
|
$ |
2.20 |
|
GAAP income tax provision (3) |
|
|
25,420 |
|
|
|
|
|
|
|
26,105 |
|
|
|
|
|
GAAP income before income taxes |
|
|
112,272 |
|
|
|
|
|
|
|
92,351 |
|
|
|
|
|
Restructuring and reorganization charges (1) |
|
|
13,323 |
|
|
|
|
|
|
|
16,336 |
|
|
|
|
|
Executive transition costs |
|
|
352 |
|
|
|
|
|
|
|
1,754 |
|
|
|
|
|
Acquisition-related expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Amortization of acquired intangible assets |
|
|
14,014 |
|
|
|
|
|
|
|
12,185 |
|
|
|
|
|
Earn-out compensation |
|
|
5,644 |
|
|
|
|
|
|
|
(14 |
) |
|
|
|
|
Transaction-related costs |
|
|
381 |
|
|
|
|
|
|
|
2,109 |
|
|
|
|
|
Stock-based compensation (1) |
|
|
34,385 |
|
|
|
|
|
|
|
29,480 |
|
|
|
|
|
Non-GAAP income before income taxes |
|
|
180,371 |
|
|
|
|
|
|
|
154,201 |
|
|
|
|
|
Non-GAAP income tax provision (3) |
|
|
(45,093 |
) |
|
|
|
|
|
|
(43,176 |
) |
|
|
|
|
Non-GAAP net income |
|
$ |
135,278 |
|
|
$ |
4.72 |
|
|
$ |
111,025 |
|
|
$ |
3.69 |
|
(3) |
For the fourth quarter and year ended December 31, 2024, the GAAP effective income tax rates were approximately |
(4) |
The outstanding diluted shares for the fourth quarter and year ended December 31, 2024 were 28.5 million and 28.7 million, respectively, and for the fourth quarter and year ended December 31, 2023 were 28.8 million and 30.1 million, respectively. |
Non-GAAP Adjusted EBITDA:
CSG’s calculation of non-GAAP adjusted EBITDA and the reconciliation of CSG’s non-GAAP adjusted EBITDA measure to GAAP net income is provided below for the indicated periods (in thousands, except percentages):
|
|
Quarter Ended |
|
Year Ended |
|
|||||||||||
|
|
December 31, |
|
December 31, |
|
|||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
GAAP net income |
|
$ |
34,468 |
|
|
$ |
12,670 |
|
|
$ |
86,852 |
|
|
$ |
66,246 |
|
GAAP income tax provision |
|
|
6,561 |
|
|
|
4,174 |
|
|
|
25,420 |
|
|
|
26,105 |
|
Interest expense (5) |
|
|
7,487 |
|
|
|
8,084 |
|
|
|
30,469 |
|
|
|
31,176 |
|
Interest income and other, net |
|
|
(6,222 |
) |
|
|
(181 |
) |
|
|
(11,408 |
) |
|
|
350 |
|
GAAP operating income |
|
|
42,294 |
|
|
|
24,747 |
|
|
|
131,333 |
|
|
|
123,877 |
|
Restructuring and reorganization charges (1) |
|
|
1,283 |
|
|
|
7,915 |
|
|
|
13,323 |
|
|
|
16,336 |
|
Executive transition costs |
|
|
- |
|
|
|
606 |
|
|
|
352 |
|
|
|
1,754 |
|
Acquisition-related expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Amortization of acquired intangible assets (6) |
|
|
3,840 |
|
|
|
2,982 |
|
|
|
14,014 |
|
|
|
12,185 |
|
Earn-out compensation |
|
|
2,228 |
|
|
|
- |
|
|
|
5,644 |
|
|
|
(14 |
) |
Transaction-related costs |
|
|
138 |
|
|
|
(27 |
) |
|
|
381 |
|
|
|
2,109 |
|
Stock-based compensation (1) |
|
|
8,564 |
|
|
|
7,840 |
|
|
|
34,385 |
|
|
|
29,480 |
|
Amortization of other intangible assets (6) |
|
|
3,087 |
|
|
|
3,350 |
|
|
|
11,671 |
|
|
|
13,624 |
|
Amortization of customer contract costs (6) |
|
|
5,167 |
|
|
|
5,901 |
|
|
|
21,262 |
|
|
|
20,291 |
|
Depreciation (1) |
|
|
5,336 |
|
|
|
6,034 |
|
|
|
21,622 |
|
|
|
23,189 |
|
Non-GAAP adjusted EBITDA |
|
$ |
71,937 |
|
|
$ |
59,348 |
|
|
$ |
253,987 |
|
|
$ |
242,831 |
|
Non-GAAP adjusted EBITDA as a percentage of revenue less transaction fees (2) |
|
|
24.8 |
% |
|
|
21.7 |
% |
|
|
23.1 |
% |
|
|
22.4 |
% |
| (5) | Interest expense includes amortization of deferred financing costs as provided in Note 6 below. |
| (6) | Amortization on the statement of cash flows is made up of the following items for the indicated periods (in thousands): |
|
|
Quarter Ended |
|
|
Year Ended |
|
|
|||||||||||
|
|
December 31, |
|
|
December 31, |
|
|
|||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|||||
Amortization of acquired intangible assets |
|
$ |
3,840 |
|
|
$ |
2,982 |
|
|
$ |
14,014 |
|
|
$ |
12,185 |
|
|
|
Amortization of other intangible assets |
|
|
3,087 |
|
|
|
3,350 |
|
|
|
11,671 |
|
|
|
13,624 |
|
|
|
Amortization of customer contract costs |
|
|
5,167 |
|
|
|
5,901 |
|
|
|
21,262 |
|
|
|
20,291 |
|
|
|
Amortization of deferred financing costs |
|
|
886 |
|
|
|
891 |
|
|
|
3,500 |
|
|
|
1,567 |
|
|
|
Total amortization |
|
$ |
12,980 |
|
|
$ |
13,124 |
|
|
$ |
50,447 |
|
|
$ |
47,667 |
|
|
|
Non-GAAP Adjusted Free Cash Flow:
CSG’s calculation of non-GAAP adjusted free cash flow and the reconciliation of CSG’s non-GAAP adjusted free cash flow measure to cash flows from operating activities are provided below for the indicated periods (in thousands):
|
|
Quarter Ended |
|
Year Ended |
||||||||||||
|
|
December 31, |
|
December 31, |
||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Cash flows from operating activities |
|
$ |
82,504 |
|
|
$ |
79,531 |
|
|
$ |
135,717 |
|
|
$ |
131,896 |
|
Purchases of software, property and equipment |
|
|
(5,893 |
) |
|
|
(5,037 |
) |
|
|
(22,421 |
) |
|
|
(27,977 |
) |
Non-GAAP adjusted free cash flow |
|
$ |
76,611 |
|
|
$ |
74,494 |
|
|
$ |
113,296 |
|
|
$ |
103,919 |
|
Non-GAAP Financial Measures – 2025 Financial Guidance
Non-GAAP Operating Income and Non-GAAP Adjusted Operating Margin Percentage:
The reconciliation of GAAP operating income to non-GAAP operating income, and calculation of non-GAAP adjusted operating margin percentage, as included in CSG’s 2025 full year financial guidance, is as follows (in thousands, except percentages):
|
|
2025 Guidance Range |
||||||
|
|
Low Range |
|
High Range |
||||
Non-GAAP Operating Income |
|
|
|
|
|
|
||
GAAP operating income |
|
$ |
144,400 |
|
|
$ |
155,400 |
|
Acquisition-related expenses: |
|
|
|
|
|
|
||
Amortization of acquired intangible assets |
|
|
13,800 |
|
|
|
13,800 |
|
Earn-out compensation |
|
|
7,000 |
|
|
|
7,000 |
|
Stock-based compensation |
|
|
34,500 |
|
|
|
34,500 |
|
Non-GAAP operating income |
|
$ |
199,700 |
|
|
$ |
210,700 |
|
|
|
|
|
|
|
|
||
Non-GAAP Operating Margin Percentage |
|
|
|
|
|
|
||
Revenue |
|
$ |
1,210,000 |
|
|
$ |
1,250,000 |
|
Less: Transaction fees |
|
|
(106,000 |
) |
|
|
(111,000 |
) |
Revenue less transaction fees |
|
$ |
1,104,000 |
|
|
$ |
1,139,000 |
|
Non-GAAP adjusted operating margin percentage |
|
|
18.1 |
% |
|
|
18.5 |
% |
Non-GAAP EPS:
The reconciliation of GAAP EPS to non-GAAP EPS as included in CSG’s 2025 full year financial guidance is as follows (in thousands, except per share amounts):
|
|
2025 Guidance Range |
|
|||||||||||||
|
|
Low Range |
|
|
High Range |
|
||||||||||
|
|
Amounts |
|
EPS (8) |
|
|
Amounts |
|
EPS (8) |
|
||||||
GAAP net income |
|
$ |
86,300 |
|
|
$ |
3.11 |
|
|
$ |
94,200 |
|
|
$ |
3.37 |
|
GAAP income tax provision (7) |
|
|
33,600 |
|
|
|
|
|
|
|
36,700 |
|
|
|
|
|
GAAP income before income taxes |
|
|
119,900 |
|
|
|
|
|
|
|
130,900 |
|
|
|
|
|
Acquisition-related expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Amortization of acquired intangible assets |
|
|
13,800 |
|
|
|
|
|
|
|
13,800 |
|
|
|
|
|
Earn-out compensation |
|
|
7,000 |
|
|
|
|
|
|
|
7,000 |
|
|
|
|
|
Stock-based compensation |
|
|
34,500 |
|
|
|
|
|
|
|
34,500 |
|
|
|
|
|
Non-GAAP income before income taxes |
|
|
175,200 |
|
|
|
|
|
|
|
186,200 |
|
|
|
|
|
Non-GAAP income tax provision (7) |
|
|
(49,000 |
) |
|
|
|
|
|
|
(52,200 |
) |
|
|
|
|
Non-GAAP net income |
|
$ |
126,200 |
|
|
$ |
4.55 |
|
|
$ |
134,000 |
|
|
$ |
4.80 |
|
| (7) |
For 2025, the estimated effective income tax rates for GAAP and non-GAAP purposes are both expected to be approximately |
| (8) | The weighted-average diluted shares outstanding are expected to be approximately 28 million. |
Non-GAAP Adjusted EBITDA:
CSG’s calculation of non-GAAP adjusted EBITDA and the reconciliation of CSG’s non-GAAP adjusted EBITDA measure to GAAP net income is provided below for CSG’s 2025 full year financial guidance (in thousands, except percentages):
|
|
2025 Guidance Range |
||||||
|
|
Low Range |
|
High Range |
||||
GAAP net income |
|
$ |
86,300 |
|
|
$ |
94,200 |
|
GAAP income tax provision (7) |
|
|
33,600 |
|
|
|
36,700 |
|
Interest expense |
|
|
30,500 |
|
|
|
30,500 |
|
Interest income |
|
|
(6,000 |
) |
|
|
(6,000 |
) |
GAAP operating income |
|
|
144,400 |
|
|
|
155,400 |
|
Acquisition-related expenses: |
|
|
|
|
|
|
||
Amortization of acquired intangible assets |
|
|
13,800 |
|
|
|
13,800 |
|
Earn-out compensation |
|
|
7,000 |
|
|
|
7,000 |
|
Stock-based compensation |
|
|
34,500 |
|
|
|
34,500 |
|
Amortization of other intangible assets |
|
|
8,300 |
|
|
|
8,300 |
|
Amortization of client contract costs |
|
|
23,200 |
|
|
|
23,200 |
|
Depreciation |
|
|
24,800 |
|
|
|
24,800 |
|
Non-GAAP adjusted EBITDA |
|
$ |
256,000 |
|
|
$ |
267,000 |
|
Non-GAAP adjusted EBITDA as a percentage of revenue less transaction fees (2) |
23.2 |
% |
23.4 |
% |
||||
Non-GAAP Adjusted Free Cash Flow:
CSG’s calculation of non-GAAP adjusted free cash flow and the reconciliation of CSG’s non-GAAP adjusted free cash flow measure to cash flows from operating activities is provided below for CSG’s 2025 full year financial guidance (in thousands):
|
|
2025 Guidance Range |
||||||
|
|
Low Range |
|
High Range |
||||
Cash flows from operating activities |
|
$ |
123,000 |
|
|
$ |
173,000 |
|
Earn-out compensation payments |
|
|
7,000 |
|
|
|
7,000 |
|
Purchases of software, property and equipment |
|
|
(20,000 |
) |
|
|
(30,000 |
) |
Non-GAAP adjusted free cash flow |
|
$ |
110,000 |
|
|
$ |
150,000 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250205575297/en/
For more information, contact:
John Rea, SVP, Head of Finance, Treasury, Investor Relations, and ESG Reporting
(210) 687-4409
E-mail: John.Rea@csgi.com
Davis Barker, Senior Manager, Investor Relations & Corporate Development
(303) 884-4506
E-mail: Davis.Barker@csgi.com
Source: CSG
FAQ
What was CSG Systems (CSGS) Q4 2024 revenue and growth rate?
How much did CSG (CSGS) increase its dividend in 2025?
What is CSG Systems' (CSGS) revenue guidance for 2025?
How much stock did CSG (CSGS) repurchase in 2024?
What was CSG Systems' (CSGS) operating margin in Q4 2024?
