CTG Reports Second Quarter 2021 Results
CTG reported a 3.4% year-over-year increase in total revenue, reaching $92.2 million for Q2 2021. Solutions revenue rose 10.3% to $41.4 million, comprising 45% of total revenue, while gross profit increased 8.8% to $20.4 million. GAAP net income remained steady at $1.8 million ($0.12 EPS), with non-GAAP net income rising 35% to $2.0 million ($0.13 EPS). Despite a 5.1% sequential revenue decline from Q1 2021 mainly due to fewer billable days, the company remains optimistic about year-over-year growth and strategic disengagement from lower-margin staffing business.
- Solutions revenue increased 10.3% year-over-year to $41.4 million.
- Gross profit rose 8.8% year-over-year to $20.4 million.
- GAAP operating margin improved by 90 basis points to 3.0%.
- Non-GAAP net income improved 35% year-over-year.
- Total revenue decreased 5.1% sequentially from Q1 2021.
- Continued disengagement from lower-margin Staffing business may impact short-term revenue.
Solutions Revenue Increased
Gross Profit Increased
GAAP Operating Margin Increased 90 Basis Point Year-over-Year to
GAAP Net Income Increased
Non-GAAP Net Income Improved
BUFFALO, N.Y., July 29, 2021 (GLOBE NEWSWIRE) -- CTG (NASDAQ: CTG), a leading provider of digital IT services and solutions in North America and Western Europe, today announced its financial results for the second quarter ended July 2, 2021.
Second Quarter Financial Summary
- Total revenue increased
3.4% year-over-year to$92.2 million , compared with$89.1 million in the second quarter of 2020 - Solutions revenue increased
10.3% year-over-year to$41.4 million , or44.9% of total revenue, compared with$37.5 million , or42.1% of total revenue, in the year-ago quarter - Gross profit increased
8.8% year-over-year to$20.4 million , or22.1% of total revenue, compared with$18.7 million , or21.0% of total revenue, in the year-ago quarter - Solutions gross profit margin was
32.3% , an increase from31.5% in the year-ago quarter - GAAP operating income and margin expanded to
$2.8 million and3.0% , respectively, from$1.9 million and2.1% in the year-ago quarter, respectively - Non-GAAP operating income and margin, excluding
$0.2 million in acquisition-related expenses, were$3.0 million and3.2% , respectively, compared with$2.9 million and3.2% , in the year-ago quarter - GAAP net income was
$1.8 million , or$0.12 per diluted share, in both the 2021 and 2020 second quarters - Non-GAAP net income increased to
$2.0 million , or$0.13 per diluted share, compared with non-GAAP net income of$1.4 million , or$0.10 per diluted share, in the year-ago quarter - Adjusted EBITDA was
$4.1 million in both the 2021 and 2020 second quarters, with approximately70% of adjusted EBITDA generated from Solutions - Cash balances totaled
$29.2 million , with no debt outstanding at the end of the second quarter of 2021
Second Quarter and Recent Business Highlights
- Converted a significant portion of existing pipeline opportunities into contracted Solutions business, while building a solid pipeline of prospective new business
- Secured significant new contract for go-live Epic implementation with a U.S. client that is scheduled to commence in the second half of 2021
- Appointed industry executive Katie Stein to Board of Directors, adding a broad perspective on IT services and significant experience in M&A, as well as further expanding the Board’s diversity
CEO Comments on Results
“We continued to execute our digital solutions strategy during the quarter, resulting in Solutions revenue growing
“Although the overall pace of proposal requests and contract commitments remain slower in the current environment, our team has done an excellent job of managing higher conversion rates on new Solutions wins. Our ongoing investments have expanded CTG’s addressable market, allowing us to enter the second half of the year with a solid pipeline to support continued year-over-year growth in our Solutions business. As we continue to execute on our strategy and our digital transformation offerings comprise a growing portion of new business engagements, we expect to realize ongoing improvements in margins, profitability and value creation for our shareholders.”
Consolidated Second Quarter Results
Revenue in the second quarter of 2021 was
Gross profit in the second quarter of 2021 was
GAAP operating income in the second quarter of 2021 was
GAAP net income in the second quarter of 2021 was
CTG’s effective income tax rate in the second quarter of 2021 was
Balance Sheet
Cash and short-term investments at July 2, 2021 were
Guidance and Outlook
Given the evolving global impacts of the COVID-19 pandemic which has led to limited visibility on CTG’s end markets and clients, the Company is not providing formal quarterly or annual guidance at this time. The Company does however expect continued year-over-year revenue growth and operating profit improvement driven by an increasing mix of Solutions revenue, partially offset by the ongoing strategic disengagement from lower-margin Staffing business.
John M. Laubacker, CTG Executive Vice President and Chief Financial Officer commented, “We are pleased with our consistent progress and advancement of the Company’s digital transformation strategy, which contributed to the continued growth of Solutions revenue and our strong operating results in the second quarter.”
Conference Call and Webcast
CTG will hold a conference call today at 11:00 a.m. Eastern Time to discuss its financial results and business outlook. To access CTG’s conference call via telephone, participants should dial +1 877 226 8189 and enter the access code 6073339. The conference call will also be available via webcast in the Investors section of CTG’s website at www.ctg.com.
A replay of the call will be available between 3:00 p.m. Eastern Time on July 29, 2021 and 12:00 a.m. Eastern Time on August 2, 2021 by dialing +1 866 207 1041 and entering the access code 9979417. The webcast will also be archived on CTG’s website in the Events & Presentations section for at least 90 days following completion of the conference call.
About CTG
CTG is a leading provider of digital transformation solutions and services that accelerate clients’ project momentum and achievement of their desired IT and business outcomes. We have earned a reputation as a faster and more reliable, results-driven partner focused on improved data-driven decision making, meaningful business performance improvements, new and enhanced customer experiences, and continuous innovation. CTG has operations in North America, South America, Western Europe, and India. The Company regularly posts news and other important information online at www.ctg.com.
Reconciliation of GAAP to Non-GAAP Information
The Company has referenced non-GAAP information in this news release. The Company believes that the use of non-GAAP financial information provides useful information to investors and management to gain an overall understanding of its current financial performance and prospects. In addition, non-GAAP financial measures are used by management for forecasting, facilitating ongoing operating decisions, and measuring the Company’s overall performance. The Company believes that these non-GAAP measures align closely with its internal measurement processes and are reflective of the Company’s core operating results.
A reconciliation of GAAP to non-GAAP information is included in the financial tables below. The non-GAAP financial information is presented using a consistent methodology from quarter-to-quarter and year-to-year. These measures should be considered in addition to results prepared in accordance with GAAP. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. The Company believes that non-GAAP financial measures have limitations in that they do not reflect all amounts associated with the Company's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP financial measures. As such, the non-GAAP financial measures disclosed by the Company should not be considered a substitute for or superior to financial measures calculated in accordance with GAAP, and reconciliations between GAAP and non-GAAP financial measures included in this earnings release should be carefully evaluated.
Forward-Looking Statements
This document contains certain forward-looking statements concerning the Company's current expectations as to future growth, financial outlook, business strategy and performance expectations for 2021 and beyond and statements related to cost control, new business opportunities, financial performance, market demand, and other attributes of the Company, which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995. Generally, the words “anticipates”, “believes”, “expects”, “plans”, “may”, “will”, “would”, “should”, “seeks”, “estimates”, “project”, “predict”, “potential”, “currently”, “continue”, “intends”, “outlook”, and other similar words identify forward-looking statements. These statements are based upon the Company's current expectations and assumptions, a review of industry reports, current business conditions in the areas where the Company does business, feedback from existing and potential new clients, a review of current and proposed legislation and governmental regulations that may affect the Company and/or its clients, and other future events or circumstances. Actual results could differ materially from the outlook guidance, expectations, and other forward-looking statements as a result of a number of factors and risks, including among others, the effects of the COVID-19 pandemic and the regulatory, social and business responses thereto on the Company’s business, operations, employees, contractors and clients, the availability to the Company of qualified professional staff, domestic and foreign industry competition for clients and talent, increased bargaining power of large clients, the Company's ability to protect confidential client data, the partial or complete loss of the revenue the Company generates from International Business Machines Corporation (IBM), the ability to integrate businesses when acquired and retain their clients while achieving cost reduction targets, the uncertainty of clients' implementations of cost reduction projects, the effect of healthcare reform and initiatives, the mix of work between solutions and staffing, currency exchange risks, risks associated with operating in foreign jurisdictions, renegotiations, nullification, or breaches of contracts with clients, vendors, subcontractors or other parties, the change in valuation of capitalized software balances, the impact of current and future laws and government regulation, as well as repeal or modification of such, affecting the information technology (IT) solutions and staffing industry, taxes and the Company's operations in particular, industry and economic conditions, including fluctuations in demand for IT services, consolidation among the Company's competitors or clients, the need to supplement or change our IT services in response to new offerings in the industry or changes in client requirements for IT products and solutions, actions of activist shareholders, and other factors that involve risk and uncertainty including those listed in the Company's reports filed with the Securities and Exchange Commission. Such forward-looking statements should be read in conjunction with the Company's disclosures set forth in the Company's Form 10-K for the year ended December 31, 2020, including the uncertainties described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections and other reports, including but not limited to subsequent quarterly reports on Form 10-Q, that may be filed from time to time with the Securities and Exchange Commission and may be obtained through the Securities and Exchange Commission's Electronic Data Gathering and Analysis Retrieval System ("EDGAR") at www.sec.gov.The Company assumes no obligation to update the forward-looking information contained in this release.
Investors and Media:
John M. Laubacker, Chief Financial Officer
+1 716 887 7368
COMPUTER TASK GROUP, INCORPORATED (CTG)
Condensed Consolidated Statements of Income
(Unaudited)
(amounts in thousands except per share data)
| For the Quarter Ended | For the Two Quarters Ended | ||||||||||||||||
| July 2, | June 26, | July 2, | June 26, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||
| Revenue | $ | 92,164 | $ | 89,146 | $ | 189,293 | $ | 176,095 | |||||||||
| Cost of services | 71,785 | 70,408 | 148,147 | 140,311 | |||||||||||||
| Gross profit | 20,379 | 18,738 | 41,146 | 35,784 | |||||||||||||
| Selling, general and admin. expenses | 17,578 | 16,824 | 36,247 | 31,803 | |||||||||||||
| Operating income | 2,801 | 1,914 | 4,899 | 3,981 | |||||||||||||
| Non-taxable life insurance gains | - | 389 | - | 389 | |||||||||||||
| Gain on sale of building | - | 824 | - | 824 | |||||||||||||
| Other expense, net | (256 | ) | (5 | ) | (406 | ) | (196 | ) | |||||||||
| Income before income taxes | 2,545 | 3,122 | 4,493 | 4,998 | |||||||||||||
| Provision for income taxes | 712 | 1,363 | 1,152 | 2,095 | |||||||||||||
| Net income | $ | 1,833 | $ | 1,759 | $ | 3,341 | $ | 2,903 | |||||||||
| Net income per share: | |||||||||||||||||
| Basic | $ | 0.13 | $ | 0.13 | $ | 0.24 | $ | 0.21 | |||||||||
| Diluted | $ | 0.12 | $ | 0.12 | $ | 0.22 | $ | 0.20 | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||
| Basic | 13,845 | 13,605 | 13,770 | 13,576 | |||||||||||||
| Diluted | 14,972 | 14,282 | 14,958 | 14,299 | |||||||||||||
COMPUTER TASK GROUP, INCORPORATED (CTG)
Condensed Consolidated Balance Sheets
(Unaudited)
(amounts in thousands)
| July 2, | Dec. 31, | June 26, | ||||||||
| 2021 | 2020 | 2020 | ||||||||
| Current Assets: | ||||||||||
| Cash and cash equivalents | $ | 29,209 | $ | 32,865 | $ | 34,319 | ||||
| Accounts receivable, net | 81,777 | 76,892 | 79,133 | |||||||
| Other current assets | 3,948 | 3,381 | 2,358 | |||||||
| Total current assets | 114,934 | 113,138 | 115,810 | |||||||
| Property and equipment, net | 5,508 | 5,515 | 5,246 | |||||||
| Operating lease right-of-use assets | 23,175 | 22,116 | 20,278 | |||||||
| Cash surrender value | 3,883 | 3,587 | 2,989 | |||||||
| Acquired intangibles, net | 8,165 | 9,097 | 7,741 | |||||||
| Goodwill | 20,548 | 21,275 | 19,969 | |||||||
| Other assets | 2,942 | 1,525 | 1,265 | |||||||
| Total Assets | $ | 179,155 | $ | 176,253 | $ | 173,298 | ||||
| Current Liabilities: | ||||||||||
| Accounts payable | $ | 15,333 | $ | 18,784 | $ | 15,580 | ||||
| Accrued compensation | 23,228 | 21,968 | 24,754 | |||||||
| Operating lease liabilities | 6,460 | 6,427 | 5,289 | |||||||
| Other current liabilities | 15,388 | 13,966 | 13,215 | |||||||
| Total current liabilities | 60,409 | 61,145 | 58,838 | |||||||
| Long-term debt | - | - | 12,000 | |||||||
| Operating lease liabilities | 16,613 | 15,564 | 14,929 | |||||||
| Other liabilities | 19,336 | 20,036 | 17,335 | |||||||
| Shareholders' equity | 82,797 | 79,508 | 70,196 | |||||||
| Total Liabilities and Shareholders' Equity | $ | 179,155 | $ | 176,253 | $ | 173,298 | ||||
COMPUTER TASK GROUP, INCORPORATED (CTG)
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(amounts in thousands)
| For the Two Quarters Ended | |||||||||
| July 2, | June 26, | ||||||||
| 2021 | 2020 | ||||||||
| Net income | $ | 3,341 | $ | 2,903 | |||||
| Depreciation and amortization expense | 1,685 | 1,641 | |||||||
| Equity-based compensation expense | 1,272 | 1,149 | |||||||
| Other operating items | (6,349 | ) | 13,946 | ||||||
| Net cash provided by (used in) operating activities | (51 | ) | 19,639 | ||||||
| Net cash used in investing activities | (1,618 | ) | (2,473 | ) | |||||
| Net cash provided by (used in) financing activities | (1,281 | ) | 6,243 | ||||||
| Effect of exchange rates on cash and cash equivalents | (706 | ) | 129 | ||||||
| Net increase (decrease) in cash and cash equivalents | (3,656 | ) | 23,538 | ||||||
| Cash and cash equivalents at beginning of period | 32,865 | 10,781 | |||||||
| Cash and cash equivalents at end of period | $ | 29,209 | $ | 34,319 | |||||
COMPUTER TASK GROUP, INCORPORATED (CTG)
Supplemental Financial Information
(Unaudited)
| Twelve | ||||||||||||||||||||||||
| Months | ||||||||||||||||||||||||
| For the Quarter Ended | Ended | |||||||||||||||||||||||
| Jun. | Sept. | Dec. | Mar. | Jun. | Jun. | |||||||||||||||||||
| 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | |||||||||||||||||||
| Revenue (in millions) except Billable Days | ||||||||||||||||||||||||
| Revenue | $ | 89.146 | $ | 88.648 | $ | 101.348 | $ | 97.129 | $ | 92.164 | $ | 379.289 | ||||||||||||
| Foreign Currency Impact | $ | (0.834 | ) | $ | 1.849 | $ | 3.088 | $ | 3.981 | $ | 3.921 | $ | 12.839 | |||||||||||
| Billable Days | 64 | 63 | 67 | 65 | 63 | 258 | ||||||||||||||||||
| Revenue by Geography | ||||||||||||||||||||||||
| North America | 55.4 | % | 54.9 | % | 55.2 | % | 51.0 | % | 51.0 | % | 53.0 | % | ||||||||||||
| Europe | 44.6 | % | 45.1 | % | 44.8 | % | 49.0 | % | 49.0 | % | 47.0 | % | ||||||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
| Revenue by Service | ||||||||||||||||||||||||
| Solutions | 42.1 | % | 42.2 | % | 48.9 | % | 44.7 | % | 44.9 | % | 45.3 | % | ||||||||||||
| Staffing | 57.9 | % | 57.8 | % | 51.1 | % | 55.3 | % | 55.1 | % | 54.7 | % | ||||||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
| Revenue by Vertical Market | ||||||||||||||||||||||||
| Technology Service Providers | 29 | % | 33 | % | 31 | % | 31 | % | 29 | % | 31 | % | ||||||||||||
| Financial Services | 16 | % | 15 | % | 17 | % | 17 | % | 17 | % | 16 | % | ||||||||||||
| Healthcare | 14 | % | 14 | % | 18 | % | 15 | % | 15 | % | 16 | % | ||||||||||||
| Manufacturing | 14 | % | 14 | % | 12 | % | 12 | % | 13 | % | 13 | % | ||||||||||||
| Energy | 8 | % | 6 | % | 5 | % | 6 | % | 6 | % | 5 | % | ||||||||||||
| General Markets | 19 | % | 18 | % | 17 | % | 19 | % | 20 | % | 19 | % | ||||||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||
| Gross Profit Margins | ||||||||||||||||||||||||
| Gross Profit | 21.0 | % | 22.1 | % | 21.3 | % | 21.4 | % | 22.1 | % | 21.7 | % | ||||||||||||
| Gross Profit - Solutions | 31.5 | % | 33.2 | % | 31.6 | % | 30.3 | % | 32.3 | % | 31.8 | % | ||||||||||||
| Operating Margins | ||||||||||||||||||||||||
| GAAP Operating Margin | 2.1 | % | 2.1 | % | 3.3 | % | 2.2 | % | 3.0 | % | 2.6 | % | ||||||||||||
| Non-GAAP Operating Margin | 3.2 | % | 2.7 | % | 3.5 | % | 2.8 | % | 3.2 | % | 3.1 | % | ||||||||||||
| Net Income Information (in millions except EPS) | ||||||||||||||||||||||||
| Net Income | $ | 1.759 | $ | 2.831 | $ | 1.905 | $ | 1.508 | $ | 1.833 | $ | 8.077 | ||||||||||||
| GAAP Diluted EPS* | $ | 0.12 | $ | 0.20 | $ | 0.13 | $ | 0.10 | $ | 0.12 | $ | 0.55 | ||||||||||||
| Non-GAAP Diluted EPS* | $ | 0.10 | $ | 0.18 | $ | 0.14 | $ | 0.13 | $ | 0.13 | $ | 0.58 | ||||||||||||
| Adjusted EBITDA | $ | 4.1 | $ | 3.3 | $ | 4.9 | $ | 3.7 | $ | 4.1 | $ | 16.1 | ||||||||||||
| *Third quarter 2020 GAAP and non-GAAP Diluted EPS includes | ||||||||||||||||||||||||
| Balance Sheet Information (in millions except DSO) | ||||||||||||||||||||||||
| Cash less Debt, Net | $ | 22.3 | $ | 27.4 | $ | 32.9 | $ | 33.5 | $ | 29.2 | ||||||||||||||
| Working Capital | $ | 57.0 | $ | 55.9 | $ | 52.0 | $ | 53.3 | $ | 54.5 | ||||||||||||||
| DSO | 81 | 77 | 74 | 71 | 81 | |||||||||||||||||||
In the 2021 first quarter, the Company made minor modifications to its definition of Solutions business. In order to provide consistent comparisons, Solutions revenue and Solutions gross profit margins presented in this release have been recast using the new definition for all periods presented.
COMPUTER TASK GROUP, INCORPORATED (CTG)
(Unaudited)
The non-GAAP information below excludes gains from non-taxable life insurance and on the sale of a building, costs associated with severance, rebranding, and certain acquisition-related expenses. The acquisition-related expenses consist of due diligence costs, amortization of intangible assets, and changes in the value of earn-out payments upon the achievement of certain financial targets from the Company’s recent acquisitions.
Reconciliation of GAAP to non-GAAP Operating Income
| Twelve Months | ||||||||||||||||||
| For the Quarter Ended | Ended | |||||||||||||||||
| Jun. | Sept. | Dec. | Mar. | Jun. | Jun. | |||||||||||||
| (in millions) | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | ||||||||||||
| GAAP Operating Income | $ | 1.914 | $ | 1.824 | $ | 3.325 | $ | 2.098 | $ | 2.801 | $ | 10.048 | ||||||
| Acquisition-related expenses | 0.372 | 0.526 | 0.256 | 0.395 | 0.165 | 1.342 | ||||||||||||
| Severance | 0.577 | - | - | - | - | - | ||||||||||||
| Rebranding expenses | - | - | - | 0.249 | - | 0.249 | ||||||||||||
| Non-GAAP Operating Income | $ | 2.863 | $ | 2.350 | $ | 3.581 | $ | 2.742 | $ | 2.966 | $ | 11.639 | ||||||
Reconciliation of GAAP to non-GAAP Operating Margin
| Twelve Months | ||||||||||||||||||
| For the Quarter Ended | Ended | |||||||||||||||||
| Jun. | Sept. | Dec. | Mar. | Jun. | Jun. | |||||||||||||
| 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | |||||||||||||
| GAAP Operating Margin | 2.1 | % | 2.1 | % | 3.3 | % | 2.2 | % | 3.0 | % | 2.6 | % | ||||||
| Acquisition-related expenses | 0.4 | % | 0.6 | % | 0.2 | % | 0.4 | % | 0.2 | % | 0.4 | % | ||||||
| Severance | 0.7 | % | - | - | - | - | - | |||||||||||
| Rebranding expenses | - | - | - | 0.2 | % | - | 0.1 | % | ||||||||||
| Non-GAAP Operating Margin | 3.2 | % | 2.7 | % | 3.5 | % | 2.8 | % | 3.2 | % | 3.1 | % | ||||||
Reconciliation of GAAP to non-GAAP Net Income
| Twelve Months | |||||||||||||||||||||
| For the Quarter Ended | Ended | ||||||||||||||||||||
| Jun. | Sept. | Dec. | Mar. | Jun. | Jun. | ||||||||||||||||
| (in millions) | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | |||||||||||||||
| GAAP Net Income* | $ | 1.759 | $ | 2.831 | $ | 1.905 | $ | 1.508 | $ | 1.833 | $ | 8.077 | |||||||||
| Non-taxable life insurance gains | (0.389 | ) | (0.574 | ) | - | - | - | (0.574 | ) | ||||||||||||
| Gain on sale of building | (0.464 | ) | - | - | - | - | - | ||||||||||||||
| Acquisition-related expenses | 0.210 | 0.311 | 0.139 | 0.306 | 0.119 | 0.875 | |||||||||||||||
| Severance | 0.325 | - | - | - | - | - | |||||||||||||||
| Rebranding expenses | - | - | - | 0.192 | - | 0.192 | |||||||||||||||
| Non-GAAP Net Income* | $ | 1.441 | $ | 2.568 | $ | 2.044 | $ | 2.006 | $ | 1.952 | $ | 8.570 | |||||||||
*GAAP and Non-GAAP Net Income in the 2020 third quarter includes a
COMPUTER TASK GROUP, INCORPORATED (CTG)
(Unaudited)
Reconciliation of GAAP to non-GAAP Diluted Earnings per Share (EPS)
| Twelve Months | |||||||||||||||||||||
| For the Quarter Ended | Ended | ||||||||||||||||||||
| Jun. | Sept. | Dec. | Mar. | Jun. | Jun. | ||||||||||||||||
| 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | ||||||||||||||||
| GAAP Diluted EPS** | $ | 0.12 | $ | 0.20 | $ | 0.13 | $ | 0.10 | $ | 0.12 | $ | 0.55 | |||||||||
| Non-taxable life insurance gains | (0.03 | ) | (0.04 | ) | - | - | - | (0.04 | ) | ||||||||||||
| Gain on sale of building | (0.03 | ) | - | - | - | - | - | ||||||||||||||
| Acquisition-related expenses | 0.02 | 0.02 | 0.01 | 0.02 | 0.01 | 0.06 | |||||||||||||||
| Severance | 0.02 | - | - | - | - | - | |||||||||||||||
| Rebranding expenses | - | - | - | 0.01 | - | 0.01 | |||||||||||||||
| Non-GAAP Diluted EPS** | $ | 0.10 | $ | 0.18 | $ | 0.14 | $ | 0.13 | $ | 0.13 | $ | 0.58 | |||||||||
**GAAP and Non-GAAP Diluted EPS in the 2020 third quarter includes a
Reconciliation of Net income to Adjusted EBITDA, which includes earnings before interest (including amortization of deferred debt financing costs), taxes, depreciation and amortization, equity-based compensation, severance, rebranding expenses, non-taxable life insurance gains, a gain on a sale of a building, and acquisition-related expenses.
| Twelve Months | |||||||||||||||||||||||
| For the Quarter Ended | Ended | ||||||||||||||||||||||
| Jun. | Sept. | Dec. | Mar. | Jun. | Jun. | ||||||||||||||||||
| (in millions) | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | |||||||||||||||||
| Net income*** | $ | 1.759 | $ | 2.831 | $ | 1.905 | $ | 1.508 | $ | 1.833 | $ | 8.077 | |||||||||||
| Taxes | 1.363 | (0.673 | ) | 1.600 | 0.440 | 0.712 | 2.079 | ||||||||||||||||
| Interest | 0.082 | 0.087 | 0.065 | 0.036 | 0.161 | 0.349 | |||||||||||||||||
| Depreciation and amortization | 0.825 | 0.935 | 0.733 | 0.854 | 0.831 | 3.353 | |||||||||||||||||
| Equity-Based comp. expense | 0.637 | 0.656 | 0.678 | 0.590 | 0.682 | 2.606 | |||||||||||||||||
| Severance | 0.577 | - | - | - | - | - | |||||||||||||||||
| Non-taxable life insurance gains | (0.389 | ) | (0.574 | ) | (0.024 | ) | - | - | (0.598 | ) | |||||||||||||
| Gain on sale of building | (0.824 | ) | - | - | - | - | - | ||||||||||||||||
| Other | 0.022 | 0.070 | (0.022 | ) | 0.297 | (0.123 | ) | 0.222 | |||||||||||||||
| Adjusted EBITDA | $ | 4.052 | $ | 3.332 | $ | 4.935 | $ | 3.725 | $ | 4.096 | $ | 16.088 | |||||||||||
*** Net Income in the 2020 third quarter includes a
CTG news releases are available on the Web at www.ctg.com.
FAQ
What were CTG's total revenue figures for Q2 2021?
How much did Solutions revenue increase in Q2 2021 for CTG?
What is the GAAP net income for CTG in Q2 2021?
What percentage of total revenue did Solutions represent in Q2 2021 for CTG?
How did CTG's gross profit perform in Q2 2021?
