Perficient Reports Third Quarter 2022 Results
Perficient, Inc. (Nasdaq: PRFT) reported significant financial growth for Q3 2022, with revenues rising 18% to $227.6 million compared to Q3 2021. Net income increased 32% to $23.0 million, driven by improved gross margins and reduced expenses. Earnings per share grew 33% to $0.64 on a GAAP basis. The company also expanded its stock buyback program by $60 million, raising the total to $375 million and extending the expiration date to December 31, 2024. Recent acquisitions enhanced Perficient's delivery capabilities in North America and Latin America.
- Revenue increased 18% to $227.6 million.
- Net income rose 32% to $23.0 million.
- GAAP earnings per share improved 33% to $0.64.
- Stock repurchase program expanded by $60 million to $375 million.
- None.
~ Revenues Up
Financial Highlights
For the quarter ended
-
Revenues increased
18% to from$227.6 million in the third quarter of 2021;$192.8 million -
Net income increased
32% to from$23.0 million in the third quarter of 2021, primarily as a result of higher revenues, higher gross margin percentage, and lower selling, general and administrative expenses as a percentage of revenue;$17.4 million -
GAAP earnings per share results on a fully diluted basis increased
33% to from$0.64 in the third quarter of 2021;$0.48 -
Adjusted earnings per share results (a non-GAAP measure; see attached schedule, which reconciles to GAAP earnings per share) on a fully diluted basis increased
26% to from$1.11 in the third quarter of 2021; and$0.88 -
Adjusted EBITDA (a non-GAAP measure; see attached schedule, which reconciles to GAAP net income) increased
28% to from$53.0 million in the third quarter of 2021.$41.5 million
“Expanding margins drove strong profitability during the third quarter,” said
Other Highlights
Among other recent achievements, Perficient:
-
Expanded the Company’s stock repurchase program by
for a total repurchase program of$60.0 million and extended the expiration date of the program from$375.0 million December 31, 2022 toDecember 31, 2024 , through a Board of Directors authorization subsequent toSeptember 30, 2022 ; -
Further strengthened its global delivery capabilities and capacity with the acquisition in
October 2022 ofAmeex Technologies Corporation , a digital experience consultancy based inSchaumburg, Illinois , with offshore operations inChennai, India ; -
Enhanced its nearshore development expertise with the acquisition in
September 2022 ofInflection Point Systems, Inc. , a software consulting and product development firm based inColumbia, Maryland , with nearshore operations inMonterrey, Mexico ; -
Was named the 2022 Optimizely Solution Partner of the Year, recognizing Perficient for demonstrating outstanding business performance and excellence in both sales and delivery of
Optimizely solutions; - Was recognized by Modern Healthcare as the eighth-largest healthcare management consulting firm based on 2021 revenue from total healthcare consulting fees;
-
Announced the graduation of 50 students from Perficient’s Bright Paths program and expanded the customized technology training program to
Dallas ; -
Announced a continuance of its collaboration with the
Mark Cuban Foundation to host Artificial Intelligence (AI) Bootcamps for high school students in theDallas andHouston regions; and - Was included in the “Technology Transformation Dominant” category in the “IDC Market Analysis Perspective: Worldwide Digital Transformation Professional Services” report, signifying a high market perception of Perficient’s digital transformation capabilities.
Business Outlook
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. See “Safe Harbor Statement” below.
Perficient expects its fourth quarter 2022 revenue to be in the range of
Perficient is updating its full year 2022 revenue guidance to a range of
Conference Call Details
Perficient will host a conference call regarding third quarter financial results today,
Analysts and investors who wish to ask questions during the Q&A session can register for the call on https://register.vevent.com/register/BI28a92c1364fe4c2197d2edea1e7ac4c1. Registrants will receive confirmation with dial-in details.
A live webcast of the event can be accessed on https://perficient.gcs-web.com/events/event-details/q3-2022-perficient-earnings-conference-call. A replay of the webcast will be available on https://perficient.gcs-web.com/ starting approximately two hours after the event and will be archived on the site for one year.
About Perficient
Perficient is the leading global digital consultancy. We imagine, create, engineer, and run digital transformation solutions that help our clients exceed customers’ expectations, outpace competition, and grow their business. With unparalleled strategy, creative, and technology capabilities, we bring big thinking and innovative ideas, along with a practical approach to help the world’s largest enterprises and biggest brands succeed. Traded on the Nasdaq Global Select Market, Perficient is a member of the Russell 2000 index and the S&P SmallCap 600 index. For more information, visit www.perficient.com.
Safe Harbor Statement
Some of the statements contained in this news release that are not purely historical statements discuss future expectations or state other forward-looking information related to financial results and business outlook for 2022. Those statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on management’s current intent, belief, expectations, estimates, and projections regarding our company and our industry. You should be aware that those statements only reflect our predictions. Actual events or results may differ substantially. Important factors that could cause our actual results to be materially different from the forward-looking statements include (but are not limited to) those disclosed under the heading “Risk Factors” in our most recently filed annual report on Form 10-K and other securities filings, and the following, many of which are, or may be, amplified by the novel coronavirus (COVID-19) pandemic:
(1) |
the possibility that our actual results do not meet the projections and guidance contained in this news release; |
|
(2) |
the impact of the general economy and economic and political uncertainty on our business; |
|
(3) |
the impact of the COVID-19 pandemic on our business; |
|
(4) |
risks associated with potential changes to federal, state, local and foreign laws, regulations, and policies; |
|
(5) |
risks associated with the operation of our business generally, including: |
|
a. client demand for our services and solutions; |
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b. effectively competing in a highly competitive market; |
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c. risks from international operations including fluctuations in exchange rates; |
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d. adapting to changes in technologies and offerings; |
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e. obtaining favorable pricing to reflect services provided; |
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f. risk of loss of one or more significant software vendors; |
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g. maintaining a balance of our supply of skills and resources with client demand; |
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h. changes to immigration policies; |
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i. protecting our clients’ and our data and information; |
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j. changes to tax levels, audits, investigations, tax laws or their interpretation; |
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k. making appropriate estimates and assumptions in connection with preparing our consolidated financial statements; and |
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l. maintaining effective internal controls; |
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(6) |
risks associated with managing growth organically and through acquisitions; |
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(7) |
risks associated with servicing our debt, the potential impact on the value of our common stock from the conditional conversion features of our debt and the associated convertible note hedge transactions; |
|
(8) |
legal liabilities, including intellectual property protection and infringement or the disclosure of personally identifiable information; and |
|
(9) |
the risks detailed from time to time within our filings with the |
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. This cautionary statement is provided pursuant to Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this release are made only as of the date hereof and we undertake no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future.
Unaudited Consolidated Statements of Operations (in thousands, except per share information) |
||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||
Revenues |
|
|
|
|
|
|
|
|||||
Services excluding reimbursable expenses |
$ |
224,934 |
|
$ |
190,103 |
|
$ |
664,244 |
|
|
$ |
537,792 |
Reimbursable expenses |
|
2,110 |
|
|
2,316 |
|
|
6,497 |
|
|
|
7,132 |
Total services |
|
227,044 |
|
|
192,419 |
|
|
670,741 |
|
|
|
544,924 |
Software and hardware |
|
570 |
|
|
401 |
|
|
1,722 |
|
|
|
1,373 |
Total revenues |
|
227,614 |
|
|
192,820 |
|
|
672,463 |
|
|
|
546,297 |
|
|
|
|
|
|
|
|
|||||
Cost of revenues (exclusive of depreciation and amortization, shown separately below) |
|
|
|
|
|
|
|
|||||
Cost of services |
|
134,195 |
|
|
115,796 |
|
|
404,641 |
|
|
|
330,699 |
Stock compensation |
|
2,221 |
|
|
2,464 |
|
|
7,055 |
|
|
|
6,803 |
Total cost of revenues |
|
136,416 |
|
|
118,260 |
|
|
411,696 |
|
|
|
337,502 |
|
|
|
|
|
|
|
|
|||||
Selling, general and administrative |
|
40,440 |
|
|
35,526 |
|
|
116,366 |
|
|
|
100,461 |
Stock compensation |
|
3,833 |
|
|
3,790 |
|
|
11,018 |
|
|
|
10,258 |
Total selling, general and administrative |
|
44,273 |
|
|
39,316 |
|
|
127,384 |
|
|
|
110,719 |
|
|
|
|
|
|
|
|
|||||
Depreciation |
|
2,355 |
|
|
1,607 |
|
|
6,233 |
|
|
|
4,682 |
Amortization |
|
6,087 |
|
|
4,317 |
|
|
18,064 |
|
|
|
17,702 |
Acquisition costs |
|
2,148 |
|
|
1,264 |
|
|
2,508 |
|
|
|
1,332 |
Adjustment to fair value of contingent consideration |
|
3,115 |
|
|
42 |
|
|
(351 |
) |
|
|
46 |
Income from operations |
|
33,220 |
|
|
28,014 |
|
|
106,929 |
|
|
|
74,314 |
|
|
|
|
|
|
|
|
|||||
Net interest expense |
|
616 |
|
|
3,481 |
|
|
2,308 |
|
|
|
10,144 |
Loss on debt extinguishment |
|
— |
|
|
250 |
|
|
— |
|
|
|
250 |
Net other expense |
|
20 |
|
|
103 |
|
|
406 |
|
|
|
234 |
Income before income taxes |
|
32,584 |
|
|
24,180 |
|
|
104,215 |
|
|
|
63,686 |
Provision for income taxes |
|
9,569 |
|
|
6,784 |
|
|
26,282 |
|
|
|
16,124 |
|
|
|
|
|
|
|
|
|||||
Net income |
$ |
23,015 |
|
$ |
17,396 |
|
$ |
77,933 |
|
|
$ |
47,562 |
|
|
|
|
|
|
|
|
|||||
Basic net income per share |
$ |
0.68 |
|
$ |
0.54 |
|
$ |
2.30 |
|
|
$ |
1.49 |
Diluted net income per share |
$ |
0.64 |
|
$ |
0.48 |
|
$ |
2.17 |
|
|
$ |
1.39 |
Shares used in computing basic net income per share |
|
33,861 |
|
|
31,987 |
|
|
33,873 |
|
|
|
31,925 |
Shares used in computing diluted net income per share |
|
36,663 |
|
|
35,893 |
|
|
36,763 |
|
|
|
34,177 |
|
|
|
|
|
|
|
|
|||||
Net income used in computing diluted net income per share |
$ |
23,554 |
|
$ |
17,396 |
|
$ |
79,645 |
|
|
$ |
47,562 |
Condensed Consolidated Balance Sheets (in thousands) |
||||||||
|
|
|
|
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
20,845 |
|
|
$ |
24,410 |
|
Accounts receivable, net |
|
|
192,903 |
|
|
|
177,602 |
|
Prepaid expenses |
|
|
6,536 |
|
|
|
5,400 |
|
Other current assets |
|
|
4,755 |
|
|
|
7,296 |
|
Total current assets |
|
|
225,039 |
|
|
|
214,708 |
|
Property and equipment, net |
|
|
18,529 |
|
|
|
14,747 |
|
Operating lease right-of-use assets |
|
|
29,357 |
|
|
|
33,353 |
|
|
|
|
545,842 |
|
|
|
515,229 |
|
Intangible assets, net |
|
|
82,384 |
|
|
|
81,277 |
|
Other non-current assets |
|
|
47,586 |
|
|
|
23,258 |
|
Total assets |
|
$ |
948,737 |
|
|
$ |
882,572 |
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
19,300 |
|
|
$ |
26,074 |
|
Other current liabilities |
|
|
84,715 |
|
|
|
93,877 |
|
Total current liabilities |
|
|
104,015 |
|
|
|
119,951 |
|
Long-term debt, net |
|
|
394,050 |
|
|
|
326,126 |
|
Operating lease liabilities |
|
|
20,661 |
|
|
|
23,898 |
|
Other non-current liabilities |
|
|
45,741 |
|
|
|
47,832 |
|
Total liabilities |
|
$ |
564,467 |
|
|
$ |
517,807 |
|
Stockholders' equity: |
|
|
|
|
||||
Preferred stock |
|
$ |
— |
|
|
$ |
— |
|
Common stock |
|
|
53 |
|
|
|
53 |
|
Additional paid-in capital |
|
|
393,101 |
|
|
|
423,235 |
|
Accumulated other comprehensive loss |
|
|
(14,217 |
) |
|
|
(5,843 |
) |
|
|
|
(346,471 |
) |
|
|
(324,412 |
) |
Retained earnings |
|
|
351,804 |
|
|
|
271,732 |
|
Total stockholders’ equity |
|
|
384,270 |
|
|
|
364,765 |
|
Total liabilities and stockholders’ equity |
|
$ |
948,737 |
|
|
$ |
882,572 |
|
|
|
|
|
|
Unaudited Condensed Consolidated Statements of Cash Flow (in thousands) |
|||||||
|
Nine Months Ended |
||||||
|
2022 |
|
2021 |
||||
Net income |
$ |
77,933 |
|
|
$ |
47,562 |
|
Adjustments to reconcile net income to net cash provided by operations |
|
36,148 |
|
|
|
45,114 |
|
Changes in operating assets and liabilities, net of business acquisitions |
|
(42,640 |
) |
|
|
(54,541 |
) |
Net cash provided by operating activities |
|
71,441 |
|
|
|
38,135 |
|
Net cash used in investing activities |
|
(52,413 |
) |
|
|
(21,526 |
) |
Net cash used in financing activities |
|
(21,227 |
) |
|
|
(42,785 |
) |
Effect of exchange rate on cash and cash equivalents |
|
(1,366 |
) |
|
|
(623 |
) |
Change in cash and cash equivalents |
|
(3,565 |
) |
|
|
(26,799 |
) |
Cash and cash equivalents at beginning of period |
|
24,410 |
|
|
|
83,204 |
|
Cash and cash equivalents at end of period |
$ |
20,845 |
|
|
$ |
56,405 |
|
See the Company's Form 10-Q for the full interim unaudited condensed consolidated statements of cash flows. |
About Non-GAAP Financial Information
This news release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (“GAAP”), please see the section entitled “About Non-GAAP Financial Measures” and the accompanying tables entitled “Reconciliation of GAAP to Non-GAAP Measures.”
About Non-GAAP Financial Measures
Perficient provides non-GAAP financial measures for adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, stock compensation, loss on extinguishment of debt, acquisition costs and adjustment to fair value of contingent consideration), adjusted net income, and adjusted earnings per share data as supplemental information regarding Perficient’s business performance. Perficient believes that these non-GAAP financial measures are useful to investors because they provide investors with a better understanding of Perficient’s past financial performance and future results. Perficient’s management uses these non-GAAP financial measures when it internally evaluates the performance of Perficient’s business and makes operating decisions, including internal operating budgeting, performance measurement, and the calculation of bonuses and discretionary compensation. Management excludes stock-based compensation related to restricted stock awards, the amortization of intangible assets, amortization of debt discounts and issuance costs related to convertible senior notes, loss on extinguishment of debt, acquisition costs, adjustments to the fair value of contingent consideration, net other income and expense, the impact of other infrequent or unusual transactions, and income tax effects of the foregoing, when making operational decisions.
Perficient believes that providing the non-GAAP financial measures to its investors is useful because it allows investors to evaluate Perficient’s performance using the same methodology and information used by Perficient’s management. Specifically, adjusted net income is used by management primarily to review business performance and determine performance-based incentive compensation for executives and other employees. Management uses adjusted EBITDA to measure operating profitability, evaluate trends, and make strategic business decisions.
Non-GAAP financial measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and because they involve the exercise of discretionary judgment as to which charges are excluded from the non-GAAP financial measure. However, Perficient’s management compensates for these limitations by providing the relevant disclosure of the items excluded in the calculation of adjusted EBITDA, adjusted net income, and adjusted earnings per share. In addition, some items that are excluded from adjusted net income and adjusted earnings per share can have a material impact on cash. Management compensates for these limitations by evaluating the non-GAAP measure together with the most directly comparable GAAP measure. Perficient has historically provided non-GAAP financial measures to the investment community as a supplement to its GAAP results to enable investors to evaluate Perficient’s business performance in the way that management does. Perficient’s definition may be different from similar non-GAAP financial measures used by other companies and/or analysts.
The non-GAAP adjustments, and the basis for excluding them, are outlined below:
Amortization
Perficient has incurred expense on amortization of intangible assets primarily related to various acquisitions. Management excludes these items for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted earnings per share. Perficient believes that eliminating this expense from its non-GAAP financial measures is useful to investors because the amortization of intangible assets can be inconsistent in amount and frequency, and is significantly impacted by the timing and magnitude of Perficient’s acquisition transactions, which also vary substantially in frequency from period to period.
Acquisition Costs
Perficient incurs transaction costs related to merger and acquisition-related activities which are expensed in its GAAP financial statements. Management excludes these items for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted earnings per share. Perficient believes that excluding these expenses from its non-GAAP financial measures is useful to investors because these are expenses associated with each transaction and are inconsistent in amount and frequency causing comparison of current and historical financial results to be difficult.
Adjustment to Fair Value of Contingent Consideration
Perficient is required to remeasure its contingent consideration liability related to acquisitions each reporting period until the contingency is settled. Any changes in fair value are recognized in earnings. Management excludes these items for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted earnings per share. Perficient believes that excluding these adjustments from its non-GAAP financial measures is useful to investors because they are related to acquisitions and are inconsistent in amount and frequency from period to period.
Amortization of Debt Discount and Debt Issuance Costs
On
Loss on Extinguishment of Debt
Perficient repurchased its 2023 Notes in 2020 and 2021, which resulted in a loss on extinguishment of debt. Perficient believes that excluding this loss from its non-GAAP financial measures is useful to investors because the expenses are not reflective of Perficient’s business performance.
Foreign Exchange Loss (Gain)
Non-operating foreign currency exchange gains and losses, inclusive of gains and losses on related foreign exchange forward contracts not designated as hedging instruments for accounting purposes, are reported in net other expense (income) in our consolidated statements of operations. As our operations expand into countries outside of
Stock Compensation
Perficient incurs stock-based compensation expense under Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation - Stock Compensation. Perficient excludes stock-based compensation expense and the related tax effects for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted earnings per share because stock-based compensation is a non-cash expense, which Perficient believes is not reflective of its business performance. The nature of stock-based compensation expense also makes it very difficult to estimate prospectively, since the expense will vary with changes in the stock price and market conditions at the time of new grants, varying valuation methodologies, subjective assumptions, and different award types, making the comparison of current results with forward-looking guidance potentially difficult for investors to interpret. The tax effects of stock-based compensation expense may also vary significantly from period to period, without any change in underlying operational performance, thereby obscuring the underlying profitability of operations relative to prior periods. Perficient believes that non-GAAP measures of profitability, which exclude stock-based compensation, are widely used by analysts and investors.
Dilution Offset from Convertible Note Hedge Transactions
It is Perficient’s current intent to settle conversions of the Notes through combination settlement, which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount in shares of our common stock. Perficient excludes the shares that are issuable upon conversions of the Notes because Perficient expects that the dilution from such shares will be offset by the convertible note hedge transactions entered into in
Reconciliation of GAAP to Non-GAAP Measures (unaudited) (in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
GAAP Net Income |
$ |
23,015 |
|
|
$ |
17,396 |
|
|
$ |
77,933 |
|
|
$ |
47,562 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Provision for income taxes |
|
9,569 |
|
|
|
6,784 |
|
|
|
26,282 |
|
|
|
16,124 |
|
Amortization |
|
6,087 |
|
|
|
4,317 |
|
|
|
18,064 |
|
|
|
17,702 |
|
Acquisition costs |
|
2,148 |
|
|
|
1,264 |
|
|
|
2,508 |
|
|
|
1,332 |
|
Adjustment to fair value of contingent consideration |
|
3,115 |
|
|
|
42 |
|
|
|
(351 |
) |
|
|
46 |
|
Amortization of debt discount and issuance costs |
|
607 |
|
|
|
2,594 |
|
|
|
1,822 |
|
|
|
7,684 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
250 |
|
|
|
— |
|
|
|
250 |
|
Foreign exchange loss |
|
54 |
|
|
|
121 |
|
|
|
427 |
|
|
|
257 |
|
Stock compensation |
|
6,054 |
|
|
|
6,254 |
|
|
|
18,073 |
|
|
|
17,061 |
|
Adjusted Net Income Before Tax |
|
50,649 |
|
|
|
39,022 |
|
|
|
144,758 |
|
|
|
108,018 |
|
Adjusted income tax (1) |
|
12,764 |
|
|
|
9,482 |
|
|
|
36,913 |
|
|
|
26,788 |
|
Adjusted Net Income |
$ |
37,885 |
|
|
$ |
29,540 |
|
|
$ |
107,845 |
|
|
$ |
81,230 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP Earnings Per Share (diluted) |
$ |
0.64 |
|
|
$ |
0.48 |
|
|
$ |
2.17 |
|
|
$ |
1.39 |
|
Adjusted Earnings Per Share (diluted) |
$ |
1.11 |
|
|
$ |
0.88 |
|
|
$ |
3.14 |
|
|
$ |
2.49 |
|
|
|
|
|
|
|
|
|
||||||||
Shares used in computing GAAP Earnings Per Share (diluted) |
|
36,663 |
|
|
|
35,893 |
|
|
|
36,763 |
|
|
|
34,177 |
|
Dilution offset from convertible note hedge transactions |
|
(2,431 |
) |
|
|
(2,252 |
) |
|
|
(2,431 |
) |
|
|
(1,515 |
) |
Shares used in computing Adjusted Earnings Per Share (diluted) |
|
34,232 |
|
|
|
33,641 |
|
|
|
34,332 |
|
|
|
32,662 |
|
|
|
|
|
|
|
|
|
||||||||
Net income used in computing GAAP Earnings Per Share (diluted) |
$ |
23,554 |
|
|
$ |
17,396 |
|
|
$ |
79,645 |
|
|
$ |
47,562 |
|
(1) |
The estimated adjusted effective tax rate of |
Reconciliation of GAAP to Non-GAAP Measures (unaudited) (in thousands) |
||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||
GAAP Net Income |
$ |
23,015 |
|
$ |
17,396 |
|
$ |
77,933 |
|
|
$ |
47,562 |
Adjustments: |
|
|
|
|
|
|
|
|||||
Provision for income taxes |
|
9,569 |
|
|
6,784 |
|
|
26,282 |
|
|
|
16,124 |
Net interest expense |
|
616 |
|
|
3,481 |
|
|
2,308 |
|
|
|
10,144 |
Net other expense |
|
20 |
|
|
103 |
|
|
406 |
|
|
|
234 |
Depreciation |
|
2,355 |
|
|
1,607 |
|
|
6,233 |
|
|
|
4,682 |
Amortization |
|
6,087 |
|
|
4,317 |
|
|
18,064 |
|
|
|
17,702 |
Acquisition costs |
|
2,148 |
|
|
1,264 |
|
|
2,508 |
|
|
|
1,332 |
Adjustment to fair value of contingent consideration |
|
3,115 |
|
|
42 |
|
|
(351 |
) |
|
|
46 |
Loss on extinguishment of debt |
|
— |
|
|
250 |
|
|
— |
|
|
|
250 |
Stock compensation |
|
6,054 |
|
|
6,254 |
|
|
18,073 |
|
|
|
17,061 |
Adjusted EBITDA (1) |
$ |
52,979 |
|
$ |
41,498 |
|
$ |
151,456 |
|
|
$ |
115,137 |
(1) |
Adjusted EBITDA is a non-GAAP performance measure and is not intended to be a performance measure that should be regarded as an alternative to or more meaningful than either GAAP operating income or GAAP net income. Adjusted EBITDA measures presented may not be comparable to similarly titled measures presented by other companies. |
Reconciliation of GAAP to Non-GAAP Measures (unaudited) |
|||||||||||||||
|
Q4 2022 |
|
Full Year 2022 |
||||||||||||
|
Low end of
|
|
High end of
|
|
Low end of
|
|
High end of
|
||||||||
GAAP EPS |
$ |
0.69 |
|
|
$ |
0.74 |
|
|
$ |
2.85 |
|
|
$ |
2.90 |
|
Non-GAAP adjustment (1): |
|
|
|
|
|
|
|
||||||||
Non-GAAP reconciling items |
|
0.49 |
|
|
|
0.49 |
|
|
|
1.77 |
|
|
|
1.77 |
|
Tax effect of reconciling items |
|
(0.07 |
) |
|
|
(0.07 |
) |
|
|
(0.37 |
) |
|
|
(0.37 |
) |
Adjusted EPS |
$ |
1.11 |
|
|
$ |
1.16 |
|
|
$ |
4.25 |
|
|
$ |
4.30 |
|
(1) |
Non-GAAP adjustment represents the impact of amortization expense, stock compensation, amortization of debt issuance costs, foreign exchange gains and losses, loss on extinguishment of debt, acquisition costs, and adjustments to fair value of contingent consideration, net of the tax effect of these adjustments, divided by adjusted fully diluted shares. Upon adoption of ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) on |
(in millions) |
Q4 2022 (2) |
|
Full Year 2022 (2) |
||
GAAP Fully Diluted Shares (3) |
36.7 |
|
|
36.7 |
|
Non-GAAP adjustment (4): |
|
|
|
||
Dilution offset from convertible note hedge transactions |
(2.4 |
) |
|
(2.4 |
) |
Adjusted Fully Diluted Shares |
34.3 |
|
|
34.3 |
|
(2) |
The calculation of fully diluted shares assumes an average share price of |
|
(3) |
Upon adoption of ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) on |
|
(4) |
Non-GAAP adjustment represents the exclusion of shares that are issuable upon conversion of our convertible notes due to the expectation that shares relating to the principal amount of our convertible notes will be paid in cash and any excess will be offset by the convertible note hedge transactions entered into in |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221027005276/en/
bill.davis@perficient.com
Source:
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