CSG Systems International Reports Record Revenues for Fourth Quarter 2020
CSG reported its financial results for Q4 and FY 2020, with Q4 total revenue of $260.5 million and non-GAAP adjusted revenue of $243.2 million, marking a 2% and 3% increase year-over-year respectively. Full year revenue was $990.5 million, a 1% decline from 2019. GAAP EPS for Q4 was $0.41, down 41% year-over-year. For 2021, CSG anticipates revenue between $995 and $1,035 million with GAAP EPS projected at $2.30 to $2.53. CSG remains committed to business transformation and enhancing customer relationships.
- Q4 2020 revenue growth of 2% compared to Q4 2019.
- Strong cash flows with operating cash flow of $57.3 million in Q4.
- Shareholder returns include a total dividend of approximately $31 million for 2020.
- 2021 revenue guidance suggests potential growth with estimates between $995 million and $1,035 million.
- GAAP operating income decreased by 22% in Q4 2020 compared to Q4 2019.
- Full year 2020 total revenue declined by 1% from the previous year.
- GAAP EPS for Q4 showed a significant decrease of 41% compared to Q4 2019.
CSG (NASDAQ: CSGS), the trusted partner to simplify the complexity of business transformation in the digital age, today reported results for the quarter and year ended December 31, 2020.
Financial Results:
-
Fourth quarter 2020 financial results:
-
Total revenue was
$260.5 million and total non-GAAP adjusted revenue was$243.2 million . -
GAAP operating income was
$23.7 million , or9.1% of total revenue, and non-GAAP operating income was$43.0 million , or17.7% of non-GAAP adjusted revenue. -
GAAP earnings per diluted share (EPS) was
$0.41 and non-GAAP EPS was$0.90 . -
Cash flows from operations were
$57.3 million , with non-GAAP free cash flow of$52.1 million .
-
Total revenue was
-
Full year 2020 financial results:
-
Total revenue was
$990.5 million and non-GAAP adjusted revenue was$922.9 million . -
GAAP operating income was
$105.6 million , or10.7% of total revenue, and non-GAAP operating income was$154.9 million , or16.8% of non-GAAP adjusted revenue. -
GAAP EPS was
$1.82 and non-GAAP EPS was$3.12 . -
Cash flows from operations were
$173.0 million, with non-GAAP free cash flow of$143.6 million .
-
Total revenue was
Shareholder Returns:
-
On November 16, 2020, CSG declared its quarterly cash dividend of
$0.23 5 per share of common stock, or a total of approximately$8 million , to shareholders, bringing total 2020 dividends to approximately$31 million . -
In February 2021, CSG’s Board of Directors approved an approximately
6% increase in CSG’s cash dividend, with quarterly payments of$0.25 per share of common stock to be paid in March 2021. -
During the quarter and full year 2020, CSG repurchased under its stock repurchase program, approximately 334,000 shares of its common stock for approximately
$14 million and approximately 624,000 shares of its common stock for approximately$26 million , respectively.
“As challenging as 2020 was, CSG is fortunate to have a strong, resilient business model that generates good recurring cash flows and high revenue and earnings visibility,” said Brian Shepherd, president and chief executive officer of CSG. “We are pleased to announce that our 2020 financial performance finished at the high end of our guidance ranges, despite the challenges of the pandemic. Our strong fourth quarter finish in 2020 was underpinned by the strength of our customer base as CSG continues to be a trusted technology provider that helps our clients better acquire, monetize, engage and retain their customers. Looking ahead, we remain well positioned to lengthen and strengthen our relationships with existing customers, accelerate our growth and diversify our revenue base.”
Financial Overview (unaudited)
(in thousands, except per share amounts and percentages): |
||||||||||||||||||||||
|
Quarter Ended December 31, |
|
Year Ended December 31, |
|||||||||||||||||||
|
|
|
|
|
Percent |
|
|
|
|
|
Percent |
|||||||||||
|
2020 |
|
2019 |
|
Changed |
|
2020 |
|
2019 |
|
Changed |
|||||||||||
GAAP Results: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue |
$ |
260,487 |
|
$ |
254,747 |
|
2 |
% |
$ |
990,533 |
|
$ |
996,810 |
|
(1 |
%) |
||||||
Operating Income |
|
23,675 |
|
|
30,258 |
|
(22 |
%) |
|
105,556 |
|
|
126,109 |
|
(16 |
%) |
||||||
Operating Margin Percentage |
|
9.1 |
% |
|
11.9 |
% |
|
|
|
10.7 |
% |
|
12.7 |
% |
|
|
||||||
EPS |
$ |
0.41 |
|
$ |
0.70 |
|
(41 |
%) |
$ |
1.82 |
|
$ |
2.55 |
|
(29 |
%) |
||||||
Non-GAAP Results: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted Revenue |
$ |
243,248 |
|
$ |
236,907 |
|
3 |
% |
$ |
922,862 |
|
$ |
927,696 |
|
(1 |
%) |
||||||
Operating Income |
|
42,987 |
|
|
41,540 |
|
3 |
% |
|
154,887 |
|
|
165,702 |
|
(7 |
%) |
||||||
Adjusted Operating Margin Percentage |
|
17.7 |
% |
|
17.5 |
% |
|
|
|
16.8 |
% |
|
17.9 |
% |
|
|
||||||
EPS |
$ |
0.90 |
|
$ |
0.98 |
|
(8 |
%) |
$ |
3.12 |
|
$ |
3.53 |
|
(12 |
%) |
||||||
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 2020 was
GAAP operating income for the fourth quarter of 2020 was
GAAP EPS for the fourth quarter of 2020 was
Non-GAAP Results: Non-GAAP adjusted revenue for the fourth quarter of 2020 was
Non-GAAP operating income for the fourth quarter of 2020 was
Non-GAAP EPS for the fourth quarter of 2020 was
Balance Sheet and Cash Flows
Cash, cash equivalents and short-term investments as of December 31, 2020 were
Summary of 2021 Financial Guidance
CSG’s financial guidance for the full year 2021 is as follows:
GAAP Measures: |
|
|
Revenue |
|
|
Operating Margin Percentage |
|
|
EPS |
|
|
Cash Flows from Operating Activities |
|
|
Non-GAAP Measures: |
|
|
Adjusted Revenue |
|
|
Adjusted Operating Margin Percentage |
|
|
EPS |
|
|
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 3, 2021 at 5:00 p.m. EST, to discuss CSG’s fourth quarter and full year results for 2020. The call will be carried live and archived on the Internet. A link to the conference call is available at http://ir.csgi.com. In addition, to reach the conference by phone, call 800-437-2398 and ask the operator for the CSG Systems International conference call.
Additional Information
For information about CSG, please visit CSG’s web site at csgi.com. Additional information can be found in the Investor Relations section of the website.
About CSG
For more than 35 years, CSG has simplified the complexity of business, delivering innovative customer engagement solutions that help companies acquire, monetize, engage and retain customers. Operating across more than 120 countries worldwide, CSG manages billions of critical customer interactions annually, and its award-winning suite of software and services allow companies across dozens of industries to tackle their biggest business challenges and thrive in an ever-changing marketplace. CSG is the trusted partner for driving digital innovation for hundreds of leading global brands, including AT&T, Charter Communications, Comcast, DISH, Eastlink, Formula One, Maximus, MTN and Telstra. To learn more, visit our website at csgi.com and connect with us on LinkedIn, Twitter and Facebook.
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’s business may be disrupted and its results of operations and cash flows adversely affected by the COVID-19 pandemic;
- CSG derives over forty percent of its revenue from its two largest clients;
- 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 maintain a reliable, secure computing environment;
- 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
- Fluctuations in credit market conditions, general global economic and political conditions, and foreign currency exchange rates.
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, except per share amounts) |
||||||||
|
||||||||
|
|
December 31, |
|
December 31, |
||||
|
|
2020 |
|
2019 |
||||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
$ |
188,699 |
|
$ |
156,548 |
|
||
Short-term investments |
|
51,598 |
|
|
26,109 |
|
||
Total cash, cash equivalents and short-term investments |
|
240,297 |
|
|
182,657 |
|
||
Settlement assets |
|
149,785 |
|
|
169,327 |
|
||
Trade accounts receivable: |
|
|
|
|
|
|
||
Billed, net of allowance of |
|
226,623 |
|
|
244,058 |
|
||
Unbilled |
|
37,785 |
|
|
33,450 |
|
||
Income taxes receivable |
|
2,167 |
|
|
4,297 |
|
||
Other current assets |
|
41,688 |
|
|
35,293 |
|
||
Total current assets |
|
698,345 |
|
|
669,082 |
|
||
Non-current assets: |
|
|
|
|
|
|
||
Property and equipment, net of depreciation of |
|
81,759 |
|
|
84,429 |
|
||
Operating lease right-of-use assets |
|
110,756 |
|
|
94,847 |
|
||
Software, net of amortization of |
|
26,453 |
|
|
32,526 |
|
||
Goodwill |
|
272,322 |
|
|
259,164 |
|
||
Acquired client contracts, net of amortization of |
|
48,012 |
|
|
55,105 |
|
||
Client contract costs, net of amortization of |
|
47,238 |
|
|
50,746 |
|
||
Deferred income taxes |
|
10,205 |
|
|
9,392 |
|
||
Other assets |
|
36,910 |
|
|
27,739 |
|
||
Total non-current assets |
|
633,655 |
|
|
613,948 |
|
||
Total assets |
$ |
1,332,000 |
|
$ |
1,283,030 |
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Current portion of long-term debt |
$ |
14,063 |
|
$ |
10,313 |
|
||
Operating lease liabilities |
|
22,651 |
|
|
22,442 |
|
||
Client deposits |
|
39,992 |
|
|
38,687 |
|
||
Trade accounts payable |
|
29,834 |
|
|
32,704 |
|
||
Accrued employee compensation |
|
86,289 |
|
|
77,527 |
|
||
Settlement liabilities |
|
148,819 |
|
|
168,342 |
|
||
Deferred revenue |
|
52,357 |
|
|
45,094 |
|
||
Income taxes payable |
|
6,627 |
|
|
2,806 |
|
||
Other current liabilities |
|
19,383 |
|
|
20,778 |
|
||
Total current liabilities |
|
420,015 |
|
|
418,693 |
|
||
Non-current liabilities: |
|
|
|
|
|
|
||
Long-term debt, net of unamortized discounts of |
|
337,154 |
|
|
346,509 |
|
||
Operating lease liabilities |
|
95,926 |
|
|
78,936 |
|
||
Deferred revenue |
|
17,275 |
|
|
18,552 |
|
||
Income taxes payable |
|
2,436 |
|
|
2,543 |
|
||
Deferred income taxes |
|
5,109 |
|
|
6,376 |
|
||
Other non-current liabilities |
|
31,690 |
|
|
14,759 |
|
||
Total non-current liabilities |
|
489,590 |
|
|
467,675 |
|
||
Total liabilities |
|
909,605 |
|
|
886,368 |
|
||
Stockholders' equity: |
|
|
|
|
|
|
||
Preferred stock, par value $.01 per share; 10,000 shares authorized; zero shares issued and outstanding |
|
- |
|
|
- |
|
||
Common stock, par value $.01 per share; 100,000 shares authorized; 32,713 and 32,891 shares outstanding |
|
700 |
|
|
696 |
|
||
Additional paid-in capital |
|
470,557 |
|
|
454,663 |
|
||
Treasury stock, at cost; 35,980 and 35,356 shares |
|
(894,126 |
) |
|
(867,817 |
) |
||
Accumulated other comprehensive income (loss): |
|
|
|
|
|
|
||
Unrealized gains on short-term investments, net of tax |
|
13 |
|
|
16 |
|
||
Cumulative foreign currency translation adjustments |
|
(31,151 |
) |
|
(39,519 |
) |
||
Accumulated earnings |
|
876,402 |
|
|
848,623 |
|
||
Total stockholders' equity |
|
422,395 |
|
|
396,662 |
|
||
Total liabilities and stockholders' equity |
$ |
1,332,000 |
$ |
1,283,030 |
|
|||
CSG SYSTEMS INTERNATIONAL, INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME-UNAUDITED |
||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
|
||||||||||||||||
|
|
Quarter Ended |
|
Year Ended |
||||||||||||
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||
Revenue |
$ |
260,487 |
|
$ |
254,747 |
|
$ |
990,533 |
|
$ |
996,810 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenue (exclusive of depreciation, shown separately below) |
|
135,165 |
|
|
131,871 |
|
|
535,597 |
|
|
525,122 |
|
||||
Other operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research and development |
|
32,822 |
|
|
32,207 |
|
|
122,847 |
|
|
127,994 |
|
||||
Selling, general and administrative |
|
61,864 |
|
|
53,345 |
|
|
198,279 |
|
|
191,329 |
|
||||
Depreciation |
|
5,910 |
|
|
5,503 |
|
|
22,926 |
|
|
21,422 |
|
||||
Restructuring and reorganization charges |
|
1,051 |
|
|
1,563 |
|
|
5,328 |
|
|
4,834 |
|
||||
Total operating expenses |
|
236,812 |
|
|
224,489 |
|
|
884,977 |
|
|
870,701 |
|
||||
Operating income |
|
23,675 |
|
|
30,258 |
|
|
105,556 |
|
|
126,109 |
|
||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
(3,606 |
) |
|
(4,300 |
) |
|
(15,500 |
) |
|
(17,748 |
) |
||||
Amortization of original issue discount |
|
(762 |
) |
|
(720 |
) |
|
(2,983 |
) |
|
(2,819 |
) |
||||
Interest and investment income, net |
|
158 |
|
|
457 |
|
|
1,244 |
|
|
1,785 |
|
||||
Other, net |
|
223 |
|
|
(1,481 |
) |
|
(2,961 |
) |
|
(1,604 |
) |
||||
Total other |
|
(3,987 |
) |
|
(6,044 |
) |
|
(20,200 |
) |
|
(20,386 |
) |
||||
Income before income taxes |
|
19,688 |
|
|
24,214 |
|
|
85,356 |
|
|
105,723 |
|
||||
Income tax provision |
|
(6,423 |
) |
|
(1,633 |
) |
|
(26,645 |
) |
|
(22,953 |
) |
||||
Net income |
$ |
13,265 |
|
$ |
22,581 |
|
$ |
58,711 |
|
$ |
82,770 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
31,832 |
|
|
31,967 |
|
|
32,010 |
|
|
32,051 |
|
||||
Diluted |
|
32,225 |
|
|
32,443 |
|
|
32,278 |
|
|
32,465 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
$ |
0.42 |
|
$ |
0.71 |
|
$ |
1.83 |
|
$ |
2.58 |
|
||||
Diluted |
|
0.41 |
|
|
0.70 |
|
|
1.82 |
|
|
2.55 |
|
||||
CSG SYSTEMS INTERNATIONAL, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-UNAUDITED |
||||||||
(in thousands) |
||||||||
|
||||||||
|
|
Year Ended |
||||||
|
|
December 31,
|
|
December 31,
|
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
$ |
58,711 |
|
$ |
82,770 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities- |
|
|
|
|
|
|
||
Depreciation |
|
22,926 |
|
|
21,422 |
|
||
Amortization |
|
43,947 |
|
|
45,700 |
|
||
Amortization of original issue discount |
|
2,983 |
|
|
2,819 |
|
||
Asset impairment |
|
11,030 |
|
|
438 |
|
||
Gain on short-term investments and other |
|
(123 |
) |
|
(364 |
) |
||
Deferred income taxes |
|
(1,033 |
) |
|
(77 |
) |
||
Stock-based compensation |
|
25,237 |
|
|
19,919 |
|
||
Subtotal |
|
163,678 |
|
|
172,627 |
|
||
Changes in operating assets and liabilities, net of acquired amounts: |
|
|
|
|
|
|
||
Trade accounts receivable, net |
|
14,659 |
|
|
(4,015 |
) |
||
Other current and non-current assets and liabilities |
|
(10,688 |
) |
|
(17,727 |
) |
||
Income taxes payable/receivable |
|
5,405 |
|
|
4,771 |
|
||
Trade accounts payable and accrued liabilities |
|
(5,752 |
) |
|
(10,317 |
) |
||
Deferred revenue |
|
5,718 |
|
|
5,737 |
|
||
Net cash provided by operating activities |
|
173,020 |
|
|
151,076 |
|
||
|
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of software, property and equipment |
|
(29,397 |
) |
|
(37,319 |
) |
||
Purchases of short-term investments |
|
(81,824 |
) |
|
(54,258 |
) |
||
Proceeds from sale/maturity of short-term investments |
|
56,454 |
|
|
52,135 |
|
||
Acquisition of and investments in business, net of cash acquired |
|
(11,491 |
) |
|
(17,194 |
) |
||
Net cash used in investing activities |
|
(66,258 |
) |
|
(56,636 |
) |
||
|
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from issuance of common stock |
|
2,523 |
|
|
2,227 |
|
||
Payment of cash dividends |
|
(31,056 |
) |
|
(29,126 |
) |
||
Repurchase of common stock |
|
(38,123 |
) |
|
(30,918 |
) |
||
Exercise of common stock warrants |
|
- |
|
|
(12,911 |
) |
||
Payments on long-term debt |
|
(10,313 |
) |
|
(7,500 |
) |
||
Net cash used in financing activities |
|
(76,969 |
) |
|
(78,228 |
) |
||
Effect of exchange rate fluctuations on cash |
|
2,358 |
|
|
1,059 |
|
||
|
|
|
|
|
|
|
||
Net increase in cash and cash equivalents |
|
32,151 |
|
|
17,271 |
|
||
|
|
|
|
|
|
|
||
Cash and cash equivalents, beginning of period |
|
156,548 |
|
|
139,277 |
|
||
Cash and cash equivalents, end of period |
$ |
188,699 |
|
$ |
156,548 |
|
||
|
|
|
|
|
|
|
||
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
||
Cash paid during the period for- |
|
|
|
|
|
|
||
Interest |
$ |
13,681 |
|
$ |
16,064 |
|
||
Income taxes |
|
22,431 |
|
|
18,358 |
|
||
EXHIBIT 1
CSG SYSTEMS INTERNATIONAL, INC.
SUPPLEMENTAL REVENUE ANALYSIS
Revenue by Significant Customers: |
||||||||||||||||||
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|||||||||||||
|
December 31, 2020 |
|
September 30, 2020 |
|
December 31, 2019 |
|||||||||||||
|
Amount |
|
% of Revenue |
|
Amount |
|
% of Revenue |
|
Amount |
|
% of Revenue |
|||||||
Comcast |
$ |
54,845 |
21 |
% |
$ |
52,483 |
22 |
% |
$ |
60,049 |
24 |
% |
||||||
Charter |
|
54,121 |
21 |
% |
|
53,202 |
22 |
% |
|
50,617 |
20 |
% |
||||||
|
Year Ended |
Year Ended |
||||||||||
|
December 31, 2020 |
December 31, 2019 |
||||||||||
|
Amount |
% of Revenue |
Amount |
% of Revenue |
||||||||
Comcast |
$ |
213,290 |
22 |
% |
$ |
228,962 |
23 |
% |
||||
Charter |
|
209,400 |
21 |
% |
|
194,994 |
20 |
% |
||||
Revenue by Vertical |
|||||||||
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
||||
|
December 31, |
|
September 30, |
|
December 31, |
||||
|
2020 |
|
2020 |
|
2019 |
||||
Broadband/Cable/Satellite |
56 |
% |
59 |
% |
59 |
% |
|||
Telecommunications |
22 |
% |
18 |
% |
19 |
% |
|||
All other |
22 |
% |
23 |
% |
22 |
% |
|||
Total revenue |
100 |
% |
100 |
% |
100 |
% |
|||
|
Year Ended |
|
Year Ended |
|||
|
December 31, |
|
December 31, |
|||
|
2020 |
|
2019 |
|||
Broadband/Cable/Satellite |
58 |
% |
58 |
% |
||
Telecommunications |
19 |
% |
19 |
% |
||
All other |
23 |
% |
23 |
% |
||
Total revenue |
100 |
% |
100 |
% |
||
Revenue by Geography |
|||||||||
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
||||
|
December 31, |
|
September 30, |
|
December 31, |
||||
|
2020 |
|
2020 |
|
2019 |
||||
Americas |
84 |
% |
86 |
% |
88 |
% |
|||
Europe, Middle East and Africa |
12 |
% |
10 |
% |
8 |
% |
|||
Asia Pacific |
4 |
% |
4 |
% |
4 |
% |
|||
Total revenue |
100 |
% |
100 |
% |
100 |
% |
|||
|
Year Ended |
|
Year Ended |
|||
|
December 31, |
|
December 31, |
|||
|
2020 |
|
2019 |
|||
Americas |
86 |
% |
87 |
% |
||
Europe, Middle East and Africa |
10 |
% |
9 |
% |
||
Asia Pacific |
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 adjusted revenue, non-GAAP operating income, non-GAAP adjusted operating margin percentage, non-GAAP EPS, non-GAAP adjusted EBITDA, and non-GAAP 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 |
|
Adjusted
|
|
Operating
|
|
Adjusted
|
|
EPS |
Transaction fees |
|
X |
|
— |
|
X |
|
— |
Restructuring and reorganization charges |
|
— |
|
X |
|
X |
|
X |
Executive transition costs |
|
— |
|
X |
|
X |
|
X |
Acquisition-related expenses: |
|
— |
|
X |
|
X |
|
X |
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 |
Amortization of original issue discount (“OID”) |
|
— |
|
— |
|
— |
|
X |
Gain (loss) on extinguishment of debt |
|
— |
|
— |
|
— |
|
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 interchange and other payment-related fees paid, in conjunction with the delivery of service to clients under CSG’s payment services contracts, to third-party payment processors and financial institutions by CSG. Because CSG controls the integrated service provided under its payment services client contracts, these transaction fees are presented gross, and not netted against revenue; however, other payments companies who do not provide and/or control an integrated service present their revenue net of transaction fees. The exclusion of these fees in calculating CSG’s non-GAAP adjusted revenue provides management and investors an additional means to use to compare CSG’s current revenue with historical and future periods, as well as with other payments companies.
-
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 the departure of CSG’s former CEO under the terms of his separation agreement. These costs were recognized during the third and fourth quarters of 2020 (the CEO’s remaining term) and were 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.
-
The convertible notes OID is the result of allocating a portion of the principal balance of the debt at issuance to the equity component of the instrument, as required under current accounting rules. This OID is then amortized to interest expense over the life of the respective convertible debt instrument. The interest expense related to the amortization of the OID is a non-cash expense, and therefore, the exclusion of this item allows investors to further evaluate the cash interest costs of CSG’s convertible notes for cash flow, liquidity, and debt service purposes.
-
Gains and losses related to the extinguishment of debt are a result of the refinancing of CSG’s credit agreement and/or repurchase of CSG’s convertible notes. These 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 this item allows investors to further evaluate the cash impact of these repurchases 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 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, and gains and losses related to the extinguishment of debt, as discussed above. Additionally, management uses non-GAAP 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 free cash flow as net cash flows from operating activities less the purchases of software, property and equipment.
Non-GAAP Financial Measures
Non-GAAP Adjusted Revenue:
The reconciliations of GAAP revenue to non-GAAP adjusted revenue for the indicated periods are as follows (in thousands):
|
Quarter Ended December 31, |
|
Year Ended
|
|||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
GAAP revenue |
$ |
260,487 |
|
$ |
254,747 |
|
$ |
990,533 |
|
$ |
996,810 |
|
||||
Less: Transaction fees |
|
(17,239 |
) |
|
(17,840 |
) |
|
(67,671 |
) |
|
(69,114 |
) |
||||
Non-GAAP adjusted revenue |
$ |
243,248 |
|
$ |
236,907 |
|
$ |
922,862 |
|
$ |
927,696 |
|
||||
Non-GAAP Operating Income:
The reconciliations of GAAP operating income to non-GAAP operating income for the indicated periods are as follows (in thousands, except percentages):
|
Quarter Ended
|
|
Year Ended
|
|||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
GAAP operating income |
$ |
23,675 |
|
$ |
30,258 |
|
$ |
105,556 |
|
$ |
126,109 |
|
||||
Restructuring and reorganization charges (1) |
|
1,051 |
|
|
1,563 |
|
|
5,328 |
|
|
4,834 |
|
||||
Executive transition costs |
|
11,226 |
|
|
- |
|
|
13,012 |
|
|
- |
|
||||
Acquisition-related expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of acquired intangible assets |
|
2,681 |
|
|
3,095 |
|
|
11,816 |
|
|
12,603 |
|
||||
Earn-out compensation |
|
- |
|
|
- |
|
|
- |
|
|
1,260 |
|
||||
Transaction-related costs |
|
(728 |
) |
|
- |
|
|
(587 |
) |
|
- |
|
||||
Stock-based compensation (1) |
|
5,082 |
|
|
6,624 |
|
|
19,762 |
|
|
20,896 |
|
||||
Non-GAAP operating income |
$ |
42,987 |
|
$ |
41,540 |
|
$ |
154,887 |
|
$ |
165,702 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-GAAP adjusted revenue |
$ |
243,248 |
|
$ |
236,907 |
|
$ |
922,862 |
|
$ |
927,696 |
|
||||
Non-GAAP adjusted operating margin percentage |
|
17.7 |
% |
|
17.5 |
% |
|
16.8 |
% |
|
17.9 |
% |
||||
(1) |
Stock-based compensation included in the tables above and following excludes amounts that have been recorded in restructuring and reorganization charges and executive transition costs. |
|
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, 2020 |
|
December 31, 2019 |
|||||||||||
|
Amounts |
|
EPS (3) |
|
Amounts |
|
EPS (3) |
|||||||
GAAP net income |
$ |
13,265 |
|
$ |
0.41 |
$ |
22,581 |
|
$ |
0.70 |
||||
GAAP income tax provision (2) |
|
6,423 |
|
|
|
|
1,633 |
|
|
|
||||
GAAP income before income taxes |
|
19,688 |
|
|
|
|
24,214 |
|
|
|
||||
Restructuring and reorganization charges (1) |
|
1,051 |
|
|
|
|
1,563 |
|
|
|
||||
Executive transition costs |
|
11,226 |
|
|
|
|
- |
|
|
|
||||
Acquisition-related costs: |
|
|
|
|
|
|
|
|
|
|
||||
Amortization of acquired intangible assets |
|
2,681 |
|
|
|
|
3,095 |
|
|
|
||||
Transaction-related costs |
|
(728 |
) |
|
|
|
- |
|
|
|
||||
Stock-based compensation (1) |
|
5,082 |
|
|
|
|
6,624 |
|
|
|
||||
Amortization of OID |
|
762 |
|
|
|
|
720 |
|
|
|
||||
Non-GAAP income before income taxes |
|
39,762 |
|
|
|
|
36,216 |
|
|
|
||||
Non-GAAP income tax provision (2) |
|
(10,864 |
) |
|
|
|
(4,306 |
) |
|
|
||||
Non-GAAP net income |
$ |
28,898 |
|
$ |
0.90 |
$ |
31,910 |
|
$ |
0.98 |
||||
|
Year Ended |
|
Year Ended |
|||||||||||
|
December 31, 2020 |
|
December 31, 2019 |
|||||||||||
|
Amounts |
|
EPS (3) |
|
Amounts |
|
EPS (3) |
|||||||
GAAP net income |
$ |
58,711 |
|
$ |
1.82 |
$ |
82,770 |
|
$ |
2.55 |
||||
GAAP income tax provision (2) |
|
26,645 |
|
|
|
|
22,953 |
|
|
|
||||
GAAP income before income taxes |
|
85,356 |
|
|
|
|
105,723 |
|
|
|
||||
Restructuring and reorganization charges (1) |
|
5,328 |
|
|
|
|
4,834 |
|
|
|
||||
Executive transition costs |
|
13,012 |
|
|
|
|
- |
|
|
|
||||
Acquisition-related expenses: |
|
|
|
|
|
|
|
|
|
|
||||
Amortization of acquired intangible assets |
|
11,816 |
|
|
|
|
12,603 |
|
|
|
||||
Earn-out compensation |
|
- |
|
|
|
|
1,260 |
|
|
|
||||
Transaction-related costs |
|
(587 |
) |
|
|
|
- |
|
|
|
||||
Stock-based compensation (1) |
|
19,762 |
|
|
|
|
20,896 |
|
|
|
||||
Amortization of OID |
|
2,983 |
|
|
|
|
2,819 |
|
|
|
||||
Non-GAAP income before income taxes |
|
137,670 |
|
|
|
|
148,135 |
|
|
|
||||
Non-GAAP income tax provision (2) |
|
(36,978 |
) |
|
|
|
(33,404 |
) |
|
|
||||
Non-GAAP net income |
$ |
100,692 |
|
$ |
3.12 |
$ |
114,731 |
|
$ |
3.53 |
||||
(2) |
For the fourth quarter and year ended December 31, 2020 the GAAP effective income tax rates were approximately |
|
For the fourth quarter and year ended December 31, 2019 the GAAP effective income tax rates were approximately |
||
(3) |
The outstanding diluted shares for the fourth quarter and year ended December 31, 2020 were 32.2 million and 32.3 million, respectively, and for the fourth quarter and year ended December 31, 2019 were 32.4 million and 32.5 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, |
|||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
GAAP net income |
$ |
13,265 |
|
$ |
22,581 |
|
$ |
58,711 |
|
$ |
82,770 |
|
||||
GAAP income tax provision |
|
6,423 |
|
|
1,633 |
|
|
26,645 |
|
|
22,953 |
|
||||
Interest expense (4) |
|
3,606 |
|
|
4,300 |
|
|
15,500 |
|
|
17,748 |
|
||||
Amortization of OID |
|
762 |
|
|
720 |
|
|
2,983 |
|
|
2,819 |
|
||||
Interest and investment income and other, net |
|
(381 |
) |
|
1,024 |
|
|
1,717 |
|
|
(181 |
) |
||||
GAAP operating income |
|
23,675 |
|
|
30,258 |
|
|
105,556 |
|
|
126,109 |
|
||||
Restructuring and reorganization charges (1) |
|
1,051 |
|
|
1,563 |
|
|
5,328 |
|
|
4,834 |
|
||||
Executive transition costs |
|
11,226 |
|
|
- |
|
|
13,012 |
|
|
- |
|
||||
Acquisition-related expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of acquired intangible assets (5) |
|
2,681 |
|
|
3,095 |
|
|
11,816 |
|
|
12,603 |
|
||||
Earn-out compensation |
|
- |
|
|
- |
|
|
- |
|
|
1,260 |
|
||||
Transaction-related costs |
|
(728 |
) |
|
- |
|
|
(587 |
) |
|
- |
|
||||
Stock-based compensation (1) |
|
5,082 |
|
|
6,624 |
|
|
19,762 |
|
|
20,896 |
|
||||
Amortization of other intangible assets (5) |
|
3,400 |
|
|
2,897 |
|
|
13,216 |
|
|
10,641 |
|
||||
Amortization of client contract costs (5) |
|
4,432 |
|
|
4,705 |
|
|
17,190 |
|
|
20,779 |
|
||||
Depreciation |
|
5,910 |
|
|
5,503 |
|
|
22,926 |
|
|
21,422 |
|
||||
Non-GAAP adjusted EBITDA |
$ |
56,729 |
|
$ |
54,645 |
|
$ |
208,219 |
|
$ |
218,544 |
|
||||
Non-GAAP adjusted EBITDA as a percentage of non-GAAP adjusted revenue |
|
23 |
% |
|
23 |
% |
|
23 |
% |
|
24 |
% |
||||
(4) |
Interest expense includes amortization of deferred financing costs as provided in Note 5 below. |
|
(5) |
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, |
|||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||
Amortization of acquired intangible assets |
$ |
2,681 |
$ |
3,095 |
$ |
11,816 |
$ |
12,603 |
||||
Amortization of other intangible assets |
|
3,400 |
|
2,897 |
|
13,216 |
|
10,641 |
||||
Amortization of client contract costs |
|
4,432 |
|
4,705 |
|
17,190 |
|
20,779 |
||||
Amortization of deferred financing costs |
|
436 |
|
424 |
|
1,725 |
|
1,677 |
||||
Total amortization |
$ |
10,949 |
$ |
11,121 |
$ |
43,947 |
$ |
45,700 |
||||
Non-GAAP Free Cash Flow:
CSG’s calculation of non-GAAP free cash flow and the reconciliation of CSG’s non-GAAP 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, |
|||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
Cash flows from operating activities |
$ |
57,335 |
|
$ |
43,549 |
|
$ |
173,020 |
|
$ |
151,076 |
|
||||
Purchases of software, property and equipment |
|
(5,196 |
) |
|
(9,613 |
) |
|
(29,397 |
) |
|
(37,319 |
) |
||||
Non-GAAP free cash flow |
$ |
52,139 |
|
$ |
33,936 |
|
$ |
143,623 |
|
$ |
113,757 |
|
||||
Non-GAAP Financial Measures – 2021 Financial Guidance
Non-GAAP Adjusted Revenue:
The reconciliation of GAAP revenue to non-GAAP adjusted revenue, as included in CSG’s 2021 full year financial guidance, is as follows:
|
|
2021 Guidance Range |
||||||
|
|
Low Range |
|
High Range |
||||
GAAP revenue |
|
$ |
995,000 |
|
|
$ |
1,035,000 |
|
Less: Transaction fees |
|
|
(73,000 |
) |
|
|
(81,000 |
) |
Non-GAAP adjusted revenue |
|
$ |
922,000 |
|
|
$ |
954,000 |
|
Non-GAAP Operating Income:
The reconciliation of GAAP operating income to non-GAAP operating income, as included in CSG’s 2021 full year financial guidance, is as follows (in thousands, except percentages):
|
2021 Guidance Range |
|||||||
|
Low Range |
|
High Range |
|||||
Operating Income |
|
|
|
|
|
|
||
GAAP operating income |
$ |
121,300 |
|
$ |
131,300 |
|
||
Restructuring and reorganization charges |
|
300 |
|
|
300 |
|
||
Executive transition costs |
|
100 |
|
|
100 |
|
||
Acquisition-related expenses: |
|
|
|
|
|
|
||
Amortization of acquired intangible assets |
|
8,400 |
|
|
8,400 |
|
||
Stock-based compensation |
|
19,700 |
|
|
19,700 |
|
||
Non-GAAP operating income |
$ |
149,800 |
|
$ |
159,800 |
|
||
|
|
|
|
|
|
|
||
Operating Margin Percentage |
|
|
|
|
|
|
||
GAAP revenue |
$ |
995,000 |
|
$ |
1,035,000 |
|
||
GAAP operating margin percentage |
|
12.2 |
% |
|
12.7 |
% |
||
|
|
|
|
|
|
|
||
Non-GAAP adjusted revenue |
$ |
922,000 |
|
$ |
954,000 |
|
||
Non-GAAP adjusted operating margin percentage |
|
16.25 |
% |
|
16.75 |
% |
||
Non-GAAP EPS:
The reconciliation of GAAP EPS to non-GAAP EPS as included in CSG’s 2021 full year financial guidance is as follows (in thousands, except per share amounts):
|
2021 Guidance Range |
|||||||||||||
|
Low Range |
|
High Range |
|||||||||||
|
Amounts |
|
EPS (7) |
|
Amounts |
|
EPS (7) |
|||||||
GAAP net income |
$ |
73,700 |
|
$ |
2.30 |
$ |
81,000 |
|
$ |
2.53 |
||||
GAAP income tax provision (6) |
|
27,900 |
|
|
|
|
30,600 |
|
|
|
||||
GAAP income before income taxes |
|
101,600 |
|
|
|
|
111,600 |
|
|
|
||||
Restructuring and reorganization charges |
|
300 |
|
|
|
|
300 |
|
|
|
||||
Executive transition costs |
|
100 |
|
|
|
|
100 |
|
|
|
||||
Acquisition-related expenses: |
|
|
|
|
|
|
|
|
|
|
||||
Amortization of acquired intangible assets |
|
8,400 |
|
|
|
|
8,400 |
|
|
|
||||
Stock-based compensation |
|
19,700 |
|
|
|
|
19,700 |
|
|
|
||||
Amortization of OID |
|
3,000 |
|
|
|
|
3,000 |
|
|
|
||||
Non-GAAP income before income taxes |
|
133,100 |
|
|
|
|
143,100 |
|
|
|
||||
Non-GAAP income tax provision (6) |
|
(36,500 |
) |
|
|
|
(39,200 |
) |
|
|
||||
Non-GAAP net income |
$ |
96,600 |
|
$ |
3.02 |
$ |
103,900 |
|
$ |
3.24 |
||||
(6) |
For 2021, the estimated effective income tax rate for GAAP and non-GAAP purposes is expected to be approximately |
|
(7) |
The weighted-average diluted shares outstanding are expected to be approximately 32 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 2021 full year financial guidance (in thousands, except percentages):
|
2021 Guidance Range |
|||||||
|
Low Range |
High Range |
||||||
GAAP net income |
$ |
73,700 |
|
$ |
81,000 |
|
||
GAAP income tax provision (6) |
|
27,900 |
|
|
30,600 |
|
||
Interest expense |
|
17,500 |
|
|
17,500 |
|
||
Amortization of OID |
|
3,000 |
|
|
3,000 |
|
||
Interest and investment income and other, net |
|
(800 |
) |
|
(800 |
) |
||
GAAP operating income |
|
121,300 |
|
|
131,300 |
|
||
Restructuring and reorganization charges |
|
300 |
|
|
300 |
|
||
Executive transition costs |
|
100 |
|
|
100 |
|
||
Acquisition-related expenses: |
|
|
|
|
|
|
||
Amortization of acquired intangible assets |
|
8,400 |
|
|
8,400 |
|
||
Stock-based compensation |
|
19,700 |
|
|
19,700 |
|
||
Amortization of other intangible assets |
|
10,100 |
|
|
10,100 |
|
||
Amortization of client contract costs |
|
22,200 |
|
|
22,200 |
|
||
Depreciation |
|
29,400 |
|
|
29,400 |
|
||
Non-GAAP adjusted EBITDA |
$ |
211,500 |
|
$ |
221,500 |
|
||
Non-GAAP adjusted EBITDA as a percentage of non-GAAP adjusted revenue |
|
23 |
% |
|
23 |
% |
||
Non-GAAP Free Cash Flow:
CSG’s calculation of non-GAAP free cash flow and the reconciliation of CSG’s non-GAAP free cash flow measure to cash flows from operating activities is provided below for the indicated period (in thousands):
|
|
2021 Guidance Range |
||||||
|
|
Low Range |
|
High Range |
||||
Cash flows from operating activities |
|
$ |
135,000 |
|
|
$ |
155,000 |
|
Purchases of software, property and equipment |
|
|
(25,000 |
) |
|
|
(35,000 |
) |
Non-GAAP free cash flow |
|
$ |
110,000 |
|
|
$ |
120,000 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210203005211/en/
FAQ
What were CSG's total revenues for Q4 2020?
How did CSG perform in terms of GAAP EPS in Q4 2020?
What is CSG's financial guidance for 2021?
What was CSG's total revenue for the full year 2020?
How much cash flow from operations did CSG generate in Q4 2020?
