AUSTIN, Texas – Aug 3, 2005 – Perficient, Inc. (NASDAQ: PRFT) a leading information technology consulting firm in the central United States, today reported financial results for the quarter ended June 30, 2005.
Financial Highlights
For the second quarter ended June 30, 2005:
- Total revenue, including reimbursed expenses, was up 91% to $21.7 million compared to $11.3 million during the second quarter of 2004.
- Net income was up 101% to $1.6 million compared to $810 thousand during the second quarter of 2004.
- Diluted earnings per share were up 75% to $0.07 compared to $0.04 per share during the second quarter of 2004.
- Diluted cash earnings per share1 were up 40% to $0.07 compared to $0.05 per share during the second quarter of 2004.
- Gross margin for services revenue was 36.9% compared to 38.7% in the second quarter of 2004. Gross margin for software revenue was 14.0%, compared to 22.5% in the second quarter of 2004.
- EBITDA2 was up 96% to $3.2 million versus $1.6 million during the second quarter of 2004.
1 Diluted cash earnings per share (CEPS) 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 GAAP diluted earnings per share. CEPS measures presented may not be comparable to similarly titled measures presented by other companies. CEPS is defined as net income plus amortization of intangibles and stock compensation divided by shares used in computing diluted net income per share.
2 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. EBITDA measures presented may not be comparable to similarly titled measures presented by other companies. EBITDA is defined as earnings before interest, taxes, depreciation and amortization.
“Q2 was another great performance by Perficient,” said Jack McDonald, Perficient’s chairman and chief executive. “We continued to drive strong organic growth in services, which increased 23.9% on an annualized basis," he added. "This was our ninth consecutive quarter of positive, growing EPS and our tenth consecutive quarter of positive, growing EBITDA. Demand for our services is strengthening and we’re adding sales and consulting resources in several major markets to capitalize on increasing opportunities.”
Other Q2 Highlights
Among other achievements in Q2 2005, Perficient:
-- Completed the acquisition of iPath Solutions, Ltd., a Houston-based information technology consulting firm with approximately $8 million in annual revenues. The transaction increased Perficient’s headcount to more than 510 consulting, technology, sales and support professionals in 11 offices in the central US. (iPath contributed $470 thousand to Q2 revenues);
-- Added new customer relationships with leading companies including: Agriliance, BHP, BMC, Centene, CenterPoint Energy, Department of Defense, Dynegy, Halliburton, HealthLink, Highmark, H&R Block, ISO New England, Marathon Oil, National Instruments, NCAA, New York Power Authority, Sysco Foods, The Ewing Marion Kauffman Foundation, Whole Foods Markets and many others;
-- Received the Outstanding Revenue Growth Award from VARBusiness magazine as the fastest-growing solutions provider in North America in our size category;
-- Secured a $28.5 million credit facility with Silicon Valley Bank and Key Bank to be used primarily to fund accretive acquisitions;
-- Was selected to join the The Russell Microcap Index, an equity index comprised of the smallest 1,000 securities in the small-cap Russell 2000® Index plus the next 1,000 companies, based on a ranking of all U.S. equities by market capitalization; and
-- Perficient chairman and chief executive Jack McDonald won the central Texas Ernst and Young Entrepreneur of the Year Award.
Business Outlook
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. The Company expects its Q3 2005 total revenue, including reimbursed expenses, to be in the range of $22.5 million to $24.0 million, comprised of $21.8 million to $23.0 million in services revenue, including reimbursed expenses, and $700 thousand to $1 million in revenue from sales of software. The Q3 2005 forecast range of services revenue would represent services revenue growth, including reimbursed expenses, of approximately 54% to 63% over the third quarter of 2004.
Conference Call Details
Perficient will host a conference call regarding second quarter 2005 financial results today at 4:30 p.m. Eastern.
WHAT: Perficient Second Quarter 2005 Results
WHEN: Wednesday, August 3, 2005, at 4:30 p.m. Eastern
CONFERENCE CALL NUMBERS: 866-700-0161 (U.S. and Canada) 617.213.8832 (International)
PARTICIPANT PASSCODE: 19460906
REPLAY TIMES: Wednesday, August 3, 2005, at 6:30 p.m. Eastern, through Wednesday, August 10, 2005
REPLAY NUMBER: 888-286-8010 (U.S. and Canada) 617-801-6888 (International)
REPLAY PASSCODE: 34244926
About Perficient
Perficient is a leading information technology consulting firm serving Global 2000 and midsize companies in the central United States. Perficient helps clients gain competitive advantage by using Internet-based technologies to make their businesses more responsive to market opportunities and threats, strengthen relationships with customers, suppliers and partners, improve productivity and reduce information technology costs. Our solutions enable our clients to operate a real-time enterprise that dynamically adapts business processes and the systems that support them to the changing demands of an increasingly global, Internet-driven and competitive marketplace. Perficient is an award-winning "Premier Level" IBM business partner, a TeamTIBCO partner and a Microsoft Gold Certified Partner. For more information about Perficient, which has more than 510 professionals in the central United States and Canada, please visit www.perficient.com. IBM is a trademark of International Business Machines Corporation in the United States, other countries, or both.
Safe Harbor Statement
Safe Harbor Statement "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements that are subject to risk and uncertainties, including, but not limited to, the impact of competitive services, demand for services like those provided by the company and market acceptance risks, fluctuations in operating results, cyclical market pressures on the technology industry, the ability to manage strains associated with the company's growth, credit risks associated with the company's accounts receivable, the company's ability to continue to attract and retain high quality employees, accurately set fees for and timely complete its current and future client projects, and other risks detailed from time to time in the company's filings with Securities and Exchange Commission, including the most recent Form 10-KSB and Form 10-Q.
Use of Non-GAAP Financial Information
To supplement our unaudited consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), Perficient uses non-GAAP measures, such as EBITDA and CEPS, which are adjusted from results based on GAAP to exclude certain expenses. Perficient believes these non-GAAP financial measures are important representations of a company’s financial performance and uses such non-GAAP information internally to evaluate and manage its operations. Management has provided information regarding EBITDA and CEPS to assist investors in analyzing Perficient’s financial position and results of operations. These non-GAAP measures are provided to enhance the users’ overall understanding of our financial performance, but are not intended to be regarded as an alternative to or more meaningful than GAAP measures. These non-GAAP measures presented may not be comparable to similarly titled measures presented by other companies. A reconciliation of EBITDA to income from operations and net income and a reconciliation of net income to adjusted net income for CEPS are included in the unaudited consolidated statements of operations attached to this release.