STAMFORD, Conn., March 10, 2011 /PRNewswire/ -- Information
Services Group, Inc. (ISG) (Nasdaq: III), a leading technology
insights, market intelligence and advisory services company today
announced financial results for the fourth quarter and year ended
December 31, 2010.
Fourth Quarter 2010 Results
ISG reported total revenues of $31.6
million during the fourth quarter of 2010, a decrease of
$2.9 million (or 8%) from
$34.5 million in the fourth quarter
of 2009. Fee revenues (revenues before client reimbursable
expenses) totaled $29.4 million in
the fourth quarter of 2010, a decrease of 8% year-over-year (down
7% before the impact of currency translation). Strong revenue
growth in Asia Pacific (49% before
the impact of currency translation) was offset by a decline in
revenues in the Americas (down 19%) and EMEA (down 3% before the
impact of currency translation) versus the prior year. As
anticipated, fourth quarter revenues were negatively affected by
the early success we had on advising one of our auto clients,
resulting in an engagement that was completed ahead of schedule in
the first half of 2010, which led to fewer billable hours booked in
the second half of the year.
ISG reported an operating loss of $2.5
million for the fourth quarter of 2010, including the
$2.3 million in acquisition-related
costs. This compares to the $1.6
million operating income reported in the fourth quarter of
2009, with the lower income being driven by lower revenue plus
deal-related costs for the quarter.
Fourth quarter 2010 adjusted earnings before interest, taxes,
depreciation, foreign currency translation gains/losses,
amortization and non-cash stock compensation and impairment charges
(adjusted EBITDA, a non-GAAP measure) totaled $1.0 million compared with $5.0 million in the fourth quarter 2009.
Notably, this figure includes $2.3
million in acquisition-related costs associated with the two
acquisitions that we closed in the first quarter of 2011, and
consistent with our expectations given the complexity of the
Compass transaction, which incurred the bulk of the $2.3 million in non-recurring costs.
Excluding the $2.3 million in
acquisition-related costs, adjusted EBITDA for the fourth quarter
of 2010 was $3.3 million.
Reported fully diluted loss per share (EPS) for the fourth
quarter 2010 totaled $0.06 versus
$0.00 per fully diluted share for the
same period in 2009. Diluted adjusted fourth quarter EPS,
excluding acquisition-related costs, was $0.04 compared with the $0.06 for the fourth quarter of 2009. Diluted
adjusted EPS including deal costs for the fourth quarter of 2010
was a loss of $0.00.
Commenting on ISG's fourth quarter results and the recent
developments during the first quarter of 2011, Chairman and Chief
Executive Officer Michael Connors
said, "We stabilized the business after a tough 2009, witnessing a
slow and steady recovery in 2010, masked somewhat in the second
half by the early success and hence shorter duration engagement for
one of our major clients during the year."
"We enter 2011 a stronger company than 2010, having made further
progress in shaping ISG into a leading technology insights, market
intelligence and advisory services company, most recently through
the acquisitions of Compass and STA Consulting. These
acquisitions provide us with proprietary data and new capabilities,
have strong brands and were well known by our team. The
combination of our three brands (TPI, Compass and STA Consulting)
will increase our vertical and horizontal expansion and share of
wallet within our blue chip client base. Evidence of the strength
of our market position includes share gains, an expanded client
base, new recurring revenue streams, industry vertical expansion
and emerging market expansion and success. We are positioning
ourselves for growth as economic conditions improve. We look
forward to an improved economic environment in the second half of
2011."
Full Year 2010 Results
ISG reported revenues of $132.0
million during 2010, a decrease of $0.7 million (or 1%) from $132.7 million in 2009. Fee revenues
declined year-over-year by 1% to $122.4
million excluding the impact of foreign exchange. The
35% constant currency revenue growth in Asia Pacific offset the revenue decline in the
Americas down 1% and EMEA down 10% compared to the same prior year
period. Revenues related to new sourcing transactions
decreased as current and prospective clients continued to defer the
implementation of new sourcing strategies in the face of the
continuing economic downturn. This decrease was partially
offset by higher demand for post contract management and governance
services.
ISG reported an operating loss of $51.7
million for the year ended December
31, 2010 compared to operating income of $0.8 million for the same period in 2009.
Excluding the non-cash impairment charge of $52.5 million booked in the third quarter 2010
and $2.4 million in
acquisition-related costs in 2010 and $6.8
million impairment charge booked in the third quarter of
2009, operating income for 2010 of $3.1
million was $4.5 million below
the same period in 2009.
Lower operating income (before the impact of the impairment of
goodwill and intangible assets and acquisition related deal costs)
and adjusted EBITDA in 2010 resulted primarily from lower revenue,
greater use of contract labor and investments in client and
employee related events.
Adjusted EBITDA for 2010 was $13.7
million. Excluding $2.4
million in acquisition-related deal costs, 2010 full year
adjusted EBITDA was $16.1 million.
This was down $3.9 million from
adjusted EBITDA of $20.0 million in
2009.
ISG's reported 2010 diluted EPS totaled a loss of $1.66 compared to a loss of $0.09. Diluted adjusted EPS aggregated
$0.14 ($0.18 excluding deal costs) compared to
$0.26 for 2009
Other Financial and Operating Highlights
ISG cash, restricted cash and cash equivalents aggregated
$46.1 million at December 31, 2010, a net increase of $5.2 million from September 30, 2010 and $3.3 million from year end 2009. The
increase in cash balances from year-end 2009 was principally
attributable to an increase in net cash flows generated from
operating activities partially offset by term loan principal
payments.
Total outstanding debt at December 31,
2010 was $69.8 million
compared with $69.8 million at
September 30, 2010 and $71.8 million at December
31, 2009. ISG made principal repayments of
$2.0 million during 2010.
Conference Call
ISG has scheduled a conference call at 11:00 a.m. Eastern Time, Friday, March 11, 2011, to discuss the Company's
financial results. The call can be accessed by dialing 1
(800) 479-9001 or for international callers 001 (719) 457-1529.
The access code is 9220795.
About Information Services Group, Inc.
Information Services Group (ISG), founded in 2006, is a leading
technology insights, market intelligence and advisory services
company. ISG has three go-to-market brands: TPI, the leading
independent data and sourcing advisory firm in the world; Compass,
the premier independent global provider of business and information
technology benchmarking, performance improvement, data and
analytics services; and STA Consulting, a premier independent
information technology advisor serving the public sector. The
company has nearly 700 employees and operates in 21 countries.
Based in Stamford, Conn., ISG has
a proven leadership team with global experience in
information-based services and a track record of creating
significant value for shareowners, clients and employees.
Forward-Looking Statements
This communication contains "forward-looking statements" which
represent the current expectations and beliefs of management of ISG
concerning future events and their potential effects. Statements
contained herein including words such as "anticipate," "believe,"
"contemplate," "plan," "estimate," "expect," "intend," "will,"
"continue," "should," "may," and other similar expressions, are
"forward-looking statements" under the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
not guarantees of future results and are subject to certain risks
and uncertainties that could cause actual results to differ
materially from those anticipated. Those risks relate to inherent
business, economic and competitive uncertainties and contingencies
relating to the businesses of ISG and its subsidiaries including
without limitation: (1) failure to secure new engagements or loss
of important clients; (2) ability to hire and retain enough
qualified employees to support operations; (3) ability to maintain
or increase billing and utilization rates; (4) management of
growth; (5) success of expansion internationally; (6) competition;
(7) ability to move the product mix into higher margin businesses;
(8) general political and social conditions such as war, political
unrest and terrorism; (9) healthcare and benefit cost management;
(10) ability to protect ISG and its subsidiaries' intellectual
property and the intellectual property of others; (11) currency
fluctuations and exchange rate adjustments; (12) ability to
successfully consummate or integrate strategic acquisitions; (13)
financial condition of various clients in the financial, automotive
and transportation sectors which account for significant portions
of ISG's revenues and may maintain sizable accounts receivables
with ISG; and (14) ability to achieve cost reductions and
productivity improvements in any future value creation plans.
Certain of these and other applicable risks, cautionary statements
and factors that could cause actual results to differ from ISG's
forward-looking statements are included in ISG's filings with the
U.S. Securities and Exchange Commission. ISG undertakes no
obligation to update or revise any forward-looking statements to
reflect subsequent events or circumstances
Non-GAAP Financial Measures
ISG reports all financial information required in accordance
with U.S. generally accepted accounting principles (GAAP). In
this release, ISG has presented both GAAP financial results as well
as non-GAAP information for the three and twelve months ended
December 31, 2010 and December 31, 2009. ISG believes that
evaluating its ongoing operating results will be enhanced if it
discloses certain non-GAAP information. These non-GAAP
financial measures exclude non-cash and certain other special
charges that many investors believe may obscure the user's overall
understanding of ISG's current financial performance and the
Company's prospects for the future. ISG believes that these
non-GAAP measures provide useful information to investors because
they improve the comparability of the financial results between
periods and provide for greater transparency of key measures used
to evaluate the Company's performance.
ISG provides adjusted EBITDA (defined as net income plus income
taxes, net interest income/(expense), depreciation, foreign
currency transaction gains/losses, amortization of intangible
assets resulting from acquisitions and non-cash stock compensation
and impairment charges for goodwill and intangible assets) and
adjusted net income (defined as net income plus amortization of
intangible assets, non-cash stock compensation and non-cash
impairment charges for goodwill and intangible assets on a tax
adjusted basis) and selected financial data on a constant currency
basis (using foreign currency exchange rates as of November 30, 2009), which are non-GAAP measures
that the Company believes provide useful information to both
management and investors by excluding certain expenses and
financial implications of foreign currency translations, which
management believes are not indicative of ISG's core operations.
Certain prior period amounts have been reclassified to
conform to the current period presentation and definitions of
non-GAAP measurements. These non-GAAP measures are used by ISG to
evaluate the Company's business strategies and management's
performance.
Non-GAAP financial measures, when presented, are reconciled to
the most closely applicable GAAP measure. Non-GAAP measures
are provided as additional information and should not be considered
in isolation or as a substitute for results prepared in accordance
with GAAP.
Information
Services Group, Inc.
|
|
Condensed
Consolidated Statements of Operations
|
|
(unaudited)
|
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
Years Ended
December 31,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$ 31,607
|
|
$ 34,465
|
|
$ 132,013
|
|
$ 132,744
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Direct costs and expenses for
advisors
|
16,626
|
|
18,227
|
|
71,528
|
|
67,674
|
|
Selling, general and
administrative
|
14,695
|
|
12,247
|
|
49,889
|
|
47,894
|
|
Depreciation and
amortization
|
2,805
|
|
2,402
|
|
9,846
|
|
9,562
|
|
Impairment of intangible
assets
|
-
|
|
-
|
|
52,491
|
|
6,800
|
|
|
Operating (loss)
income
|
(2,519)
|
|
1,589
|
|
(51,741)
|
|
814
|
|
Interest income
|
34
|
|
8
|
|
159
|
|
262
|
|
Interest expense
|
(839)
|
|
(910)
|
|
(3,241)
|
|
(4,550)
|
|
Foreign currency transaction
(loss) gain
|
(80)
|
|
11
|
|
(268)
|
|
(140)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before
taxes
|
(3,404)
|
|
698
|
|
(55,091)
|
|
(3,614)
|
|
Income tax benefit
(provision)
|
1,340
|
|
(576)
|
|
1,926
|
|
778
|
|
|
Net (loss) income
|
$ (2,064)
|
|
$
122
|
|
$ (53,165)
|
|
$ (2,836)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
32,255
|
|
31,595
|
|
32,050
|
|
31,491
|
|
|
Diluted
|
32,255
|
|
31,992
|
|
32,050
|
|
31,491
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$ (0.06)
|
|
$
0.00
|
|
$
(1.66)
|
|
$ (0.09)
|
|
|
Diluted
|
$
(0.06)
|
|
$
0.00
|
|
$
(1.66)
|
|
$ (0.09)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information
Services Group, Inc.
|
|
Reconciliation from GAAP to
Non-GAAP
|
|
(unaudited)
|
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
Years Ended
December 31,
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
$ (2,064)
|
|
$ 122
|
|
$ (53,165)
|
|
$ (2,836)
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
Interest expense (net of
interest income)
|
805
|
|
902
|
|
3,082
|
|
4,288
|
|
|
Income taxes
|
(1,340)
|
|
576
|
|
(1,926)
|
|
(778)
|
|
|
Depreciation and
amortization
|
2,805
|
|
2,402
|
|
9,846
|
|
9,562
|
|
|
Impairment of intangible
assets
|
-
|
|
-
|
|
52,491
|
|
6,800
|
|
|
Foreign currency
transaction
|
80
|
|
(11)
|
|
268
|
|
140
|
|
|
Non-cash stock
compensation
|
727
|
|
958
|
|
3,087
|
|
2,831
|
|
Adjusted EBITDA
(1)
|
$ 1,013
|
|
$4,949
|
|
$ 13,683
|
|
$20,007
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
$ (2,064)
|
|
$ 122
|
|
$ (53,165)
|
|
$ (2,836)
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
Non-cash stock
compensation
|
727
|
|
958
|
|
3,087
|
|
2,831
|
|
|
Intangible
amortization
|
2,492
|
|
2,035
|
|
8,426
|
|
8,143
|
|
|
Impairment of intangible
assets
|
-
|
|
-
|
|
52,491
|
|
6,800
|
|
|
Foreign currency
transaction
|
80
|
|
(11)
|
|
268
|
|
140
|
|
|
Tax effect (2)
|
(1,254)
|
|
(1,133)
|
|
(6,719)
|
|
(6,807)
|
|
Adjusted net (loss)
income
|
$ (19)
|
|
$1,971
|
|
$ 4,388
|
|
$ 8,271
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
32,255
|
|
31,595
|
|
32,050
|
|
31,491
|
|
|
Diluted
|
32,255
|
|
31,992
|
|
32,050
|
|
31,491
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted (loss) earnings per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$ (0.00)
|
|
$ 0.06
|
|
$ 0.14
|
|
$ 0.26
|
|
|
Diluted (3)
|
$ (0.00)
|
|
$ 0.06
|
|
$ 0.14
|
|
$ 0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted EBITDA excluding
$2.3 million of deal costs for the fourth quarter 2010 totaled $3.3
million.
Adjusted EBITDA excluding $2.4
million of deal costs for the full year 2010 totaled $16.1
million.
|
|
|
|
(2) Marginal tax rate of 38.0%
applied. The tax effect for the year ended December 31, 2010
excludes non-deductible
items.
|
|
|
|
(3) Adjusted earnings per share
excluding $2.3 million of deal costs for the fourth quarter 2010
totaled $0.04.
Adjusted earnings per share
excluding $2.4 million of deal costs for the full year 2010 totaled
$0.18.
|
|
|
|
|
|
|
|
|
|
|
|
Information
Services Group, Inc.
|
|
Condensed
Consolidated Statements of Operations
|
|
(unaudited)
|
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2010
|
|
Q2
2010
|
|
Q3
2010
|
|
Q4
2010
|
|
FY
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$ 34,844
|
|
$ 33,372
|
|
$ 32,190
|
|
$ 31,607
|
|
$ 132,013
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Direct costs and expenses for
advisors
|
18,481
|
|
17,779
|
|
18,642
|
|
16,626
|
|
71,528
|
|
Selling, general and
administrative
|
12,338
|
|
12,224
|
|
10,632
|
|
14,695
|
|
49,889
|
|
Depreciation and
amortization
|
2,359
|
|
2,342
|
|
2,340
|
|
2,805
|
|
9,846
|
|
Impairment of intangible
assets
|
-
|
|
-
|
|
52,491
|
|
-
|
|
52,491
|
|
|
Operating income
(loss)
|
1,666
|
|
1,027
|
|
(51,915)
|
|
(2,519)
|
|
(51,741)
|
|
Interest income
|
35
|
|
51
|
|
39
|
|
34
|
|
159
|
|
Interest expense
|
(794)
|
|
(794)
|
|
(814)
|
|
(839)
|
|
(3,241)
|
|
Foreign currency transaction
(loss) gain
|
(105)
|
|
33
|
|
(116)
|
|
(80)
|
|
(268)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
taxes
|
802
|
|
317
|
|
(52,806)
|
|
(3,404)
|
|
(55,091)
|
|
Income tax (provision)
benefit
|
(342)
|
|
(131)
|
|
1,059
|
|
1,340
|
|
1,926
|
|
|
Net income (loss)
|
$ 460
|
|
$ 186
|
|
$ (51,747)
|
|
$ (2,064)
|
|
$ (53,165)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
31,922
|
|
31,981
|
|
32,044
|
|
32,255
|
|
32,050
|
|
|
Diluted
|
32,134
|
|
32,219
|
|
32,044
|
|
32,255
|
|
32,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.01
|
|
$ 0.01
|
|
$ (1.61)
|
|
$ (0.06)
|
|
$ (1.66)
|
|
|
Diluted
|
$ 0.01
|
|
$ 0.01
|
|
$ (1.61)
|
|
$ (0.06)
|
|
$ (1.66)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information
Services Group, Inc.
|
|
Reconciliation from GAAP to
Non-GAAP
|
|
(unaudited)
|
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2010
|
|
Q2
2010
|
|
Q3
2010
|
|
Q4
2010
|
|
FY
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$ 460
|
|
$ 186
|
|
$ (51,747)
|
|
$ (2,064)
|
|
$ (53,165)
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (net of
interest income)
|
759
|
|
743
|
|
775
|
|
805
|
|
3,082
|
|
|
Income taxes
|
342
|
|
131
|
|
(1,059)
|
|
(1,340)
|
|
(1,926)
|
|
|
Depreciation and
amortization
|
2,359
|
|
2,342
|
|
2,340
|
|
2,805
|
|
9,846
|
|
|
Impairment of intangible
assets
|
-
|
|
-
|
|
52,491
|
|
-
|
|
52,491
|
|
|
Foreign currency
transaction
|
105
|
|
(33)
|
|
116
|
|
80
|
|
268
|
|
|
Non-cash stock
compensation
|
848
|
|
829
|
|
683
|
|
727
|
|
3,087
|
|
Adjusted EBITDA
(1)
|
$ 4,873
|
|
$ 4,198
|
|
$ 3,599
|
|
$ 1,013
|
|
$ 13,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$ 460
|
|
$ 186
|
|
$ (51,747)
|
|
$ (2,064)
|
|
(53,165)
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock
compensation
|
848
|
|
829
|
|
683
|
|
727
|
|
3,087
|
|
|
Intangible
amortization
|
1,978
|
|
1,978
|
|
1,978
|
|
2,492
|
|
8,426
|
|
|
Impairment of intangible
assets
|
-
|
|
-
|
|
52,491
|
|
-
|
|
52,491
|
|
|
Foreign currency
transaction
|
105
|
|
(33)
|
|
116
|
|
80
|
|
268
|
|
|
Tax effect (2)
|
(1,114)
|
|
(1,054)
|
|
(3,297)
|
|
(1,254)
|
|
(6,719)
|
|
Adjusted net income
(loss)
|
$ 2,277
|
|
$ 1,906
|
|
$
224
|
|
$
(19)
|
|
$ 4,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
31,922
|
|
31,981
|
|
32,044
|
|
32,255
|
|
32,050
|
|
|
Diluted
|
32,134
|
|
32,219
|
|
32,044
|
|
32,255
|
|
32,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.07
|
|
$ 0.06
|
|
$
0.01
|
|
$ (0.00)
|
|
$
0.14
|
|
|
Diluted (3)
|
$ 0.07
|
|
$ 0.06
|
|
$
0.01
|
|
$ (0.00)
|
|
$
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted EBITDA excluding
$2.3 million of deal costs for the fourth quarter 2010 totaled $3.3
million.
Adjusted EBITDA excluding $2.4 million of deal costs
for the full year 2010 totaled $16.1 million.
|
|
|
|
(2) Marginal tax rate of 38.0%
applied. The tax effect for the year ended December 31, 2010
excludes non-deductible items.
|
|
|
|
(3) Adjusted earnings per share
excluding $2.3 million of deal costs for the fourth quarter 2010
totaled $0.04.
Adjusted
earnings per share excluding $2.4 million of deal costs for the
full year 2010 totaled $0.18.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information
Services Group, Inc.
|
|
Condensed
Consolidated Statements of Operations
|
|
(unaudited)
|
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2009
|
|
Q2
2009
|
|
Q3
2009
|
|
Q4
2009
|
|
FY
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$ 34,299
|
|
$ 31,518
|
|
$ 32,462
|
|
$ 34,465
|
|
$ 132,744
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Direct costs and expenses for
advisors
|
14,865
|
|
17,614
|
|
16,968
|
|
18,227
|
|
67,674
|
|
Selling, general and
administrative
|
15,009
|
|
10,106
|
|
10,532
|
|
12,247
|
|
47,894
|
|
Depreciation and
amortization
|
2,372
|
|
2,422
|
|
2,366
|
|
2,402
|
|
9,562
|
|
Impairment of intangible
assets
|
-
|
|
-
|
|
6,800
|
|
-
|
|
6,800
|
|
|
Operating income
(loss)
|
2,053
|
|
1,376
|
|
(4,204)
|
|
1,589
|
|
814
|
|
Interest income
|
163
|
|
52
|
|
39
|
|
8
|
|
262
|
|
Interest expense
|
(1,303)
|
|
(1,226)
|
|
(1,111)
|
|
(910)
|
|
(4,550)
|
|
Foreign currency transaction
(loss) gain
|
(12)
|
|
(32)
|
|
(107)
|
|
11
|
|
(140)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
taxes
|
901
|
|
170
|
|
(5,383)
|
|
698
|
|
(3,614)
|
|
Income tax (provision)
benefit
|
(360)
|
|
(72)
|
|
1,786
|
|
(576)
|
|
778
|
|
|
Net income (loss)
|
$ 541
|
|
$
98
|
|
$ (3,597)
|
|
$ 122
|
|
$ (2,836)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
31,418
|
|
31,471
|
|
31,478
|
|
31,595
|
|
31,491
|
|
|
Diluted
|
31,465
|
|
31,559
|
|
31,478
|
|
31,992
|
|
31,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.02
|
|
$ 0.00
|
|
$ (0.11)
|
|
$ 0.00
|
|
$ (0.09)
|
|
|
Diluted
|
$ 0.02
|
|
$ 0.00
|
|
$ (0.11)
|
|
$ 0.00
|
|
$ (0.09)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from GAAP to
Non-GAAP
|
|
(unaudited)
|
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2009
|
|
Q2
2009
|
|
Q3
2009
|
|
Q4
2009
|
|
FY
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$ 541
|
|
$
98
|
|
$ (3,597)
|
|
$ 122
|
|
$ (2,836)
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (net of
interest income)
|
1,140
|
|
1,174
|
|
1,072
|
|
902
|
|
4,288
|
|
|
Income taxes
|
360
|
|
72
|
|
(1,786)
|
|
576
|
|
(778)
|
|
|
Depreciation and
amortization
|
2,372
|
|
2,422
|
|
2,366
|
|
2,402
|
|
9,562
|
|
|
Impairment of intangible
assets
|
-
|
|
-
|
|
6,800
|
|
-
|
|
6,800
|
|
|
Foreign currency
transaction
|
12
|
|
32
|
|
107
|
|
(11)
|
|
140
|
|
|
Non-cash stock
compensation
|
693
|
|
617
|
|
563
|
|
958
|
|
2,831
|
|
Adjusted EBITDA
|
$ 5,118
|
|
$ 4,415
|
|
$ 5,525
|
|
$ 4,949
|
|
$ 20,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$ 541
|
|
$
98
|
|
$ (3,597)
|
|
$ 122
|
|
$ (2,836)
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock
compensation
|
693
|
|
617
|
|
563
|
|
958
|
|
2,831
|
|
|
Intangible
amortization
|
2,036
|
|
2,036
|
|
2,036
|
|
2,035
|
|
8,143
|
|
|
Impairment of intangible
assets
|
-
|
|
-
|
|
6,800
|
|
-
|
|
6,800
|
|
|
Foreign currency
transaction
|
12
|
|
32
|
|
107
|
|
(11)
|
|
140
|
|
|
Tax effect (1)
|
(1,042)
|
|
(1,020)
|
|
(3,612)
|
|
(1,133)
|
|
(6,807)
|
|
Adjusted net
income
|
$ 2,240
|
|
$ 1,763
|
|
$ 2,297
|
|
$ 1,971
|
|
$ 8,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
31,418
|
|
31,471
|
|
31,478
|
|
31,595
|
|
31,491
|
|
|
Diluted
|
31,465
|
|
31,559
|
|
31,478
|
|
31,992
|
|
31,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.07
|
|
$ 0.06
|
|
$ 0.07
|
|
$ 0.06
|
|
$ 0.26
|
|
|
Diluted
|
$ 0.07
|
|
$ 0.06
|
|
$ 0.07
|
|
$ 0.06
|
|
$ 0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Marginal tax rate of 38.0%
applied.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information
Services Group, Inc.
|
|
Selected
Financial Data
|
|
Constant
Currency Comparison
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Three Months Ended
|
|
|
Three Months Ended
|
Constant currency
|
December
31, 2010
|
|
Three Months Ended
|
Constant currency
|
December 31, 2009
|
|
|
December 31, 2010
|
impact
(1)
|
Adjusted
|
|
December 31,
2009
|
impact (1)
|
Adjusted
|
|
Revenue
|
$
31,607
|
$
224
|
$
31,831
|
|
$
34,465
|
$
(234)
|
$
34,231
|
|
Operating loss
|
$
(2,519)
|
$
162
|
$
(2,357)
|
|
$
1,589
|
$
(228)
|
$
1,361
|
|
Adjusted EBITDA
|
$
1,013
|
$
162
|
$
1,175
|
|
$
4,949
|
$
(228)
|
$
4,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
Year Ended
|
|
|
Year Ended
|
Constant currency
|
December 31, 2010
|
|
Year Ended
|
Constant currency
|
December 31, 2009
|
|
|
December 31,
2010
|
impact (1)
|
Adjusted
|
|
December 31, 2009
|
impact (1)
|
Adjusted
|
|
Revenue
|
$
132,013
|
$
2,664
|
$
134,677
|
|
$
132,744
|
$
3,497
|
$
136,241
|
|
Operating (loss)
income
|
$
(51,741)
|
$
562
|
$
(51,179)
|
|
$
814
|
$
944
|
$
1,758
|
|
Adjusted EBITDA
|
$
13,683
|
$
562
|
$
14,245
|
|
$
20,007
|
$
944
|
$
20,951
|
|
|
|
|
|
|
|
|
|
|
(1) Using foreign currency rates
as of November 30, 2009.
|
|
|
|
|
|
|
|
|
|
SOURCE Information Services Group, Inc.