AUSTIN, Texas – February 28, 2006 – Perficient, Inc. (NASDAQ: PRFT) a leading information technology consulting firm in the central United States, today reported financial results for the quarter and year ended December 31, 2005.
Financial Highlights
For the fourth quarter ended December 31, 2005:
- Total revenue, including reimbursed expenses, was up 36% to $29.5 million compared to $21.6 million during the fourth quarter of 2004.
- Total services revenue, including reimbursed expenses, was up 74% to $24.8 million compared to $14.2 million during the fourth quarter of 2004.
- Cash earnings per share1 on a fully diluted basis were up 50% to $0.09 compared to $0.06 per share during the fourth quarter of 2004.
- GAAP earnings per share on a fully diluted basis were up 33% to $0.08 compared to $0.06 per share during the fourth quarter of 2004.
- EBITDA2 was up 56% to $4.1 million compared to $2.7 million during the fourth quarter of 2004.
- Net income was up 49% to $2.0 million compared to $1.3 million during the fourth quarter of 2004.
- Gross margin for services revenue was 35.0% compared to 38.4% in the fourth quarter of 2004.
- Gross margin for software revenue was 17.7% compared to 12.7% in the fourth quarter of 2004.
For the year ended December 31, 2005:
- Total revenue, including reimbursed expenses, was up 65% to $97.0 million compared to $58.8 million during 2004.
- Total services revenue, including reimbursed expenses, was up 92% to $87.6 million compared to $45.7 million during 2004.
- Cash earnings per share1 on a fully diluted basis were up 57% to $0.33 compared to $0.21 per share during 2004.
- GAAP earnings per share on a fully diluted basis were up 47% to $0.28 compared to $0.19 per share during 2004.
- EBITDA2 was up 87% to $14.5 million compared to $7.8 million during 2004.
- Net income was up 83% to $7.2 million compared to $3.9 million during 2004.
- Gross margin for services revenue was 36.7% compared to 39.2% during 2004.
- Gross margin for software revenue was 17.7% compared to 13.9% during 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.
“Q4 of 2005 was a great close to an exceptional year,” said Jack McDonald, Perficient’s chairman and chief executive. “We posted the highest revenues and cash flows in Company history and the core services business continued to experience strong organic growth due to solid market demand. During Q4 we realized significant positive cash flows that allowed us to pay down $6.3 million of our bank debt. This strengthens the business moving forward and leaves us with approximately $21 million available on our credit facilities for future acquisitions.”
Other 2005 Highlights
Among other achievements in 2005, Perficient:
-- Completed the acquisitions of iPath Solutions, Ltd., and Vivare, LP;
-- In Q4, added new customer relationships and follow-on projects with leading companies including: Accenture, Advanced Micro Devices, Affinia, Allied Solutions BNSF Railway, Bunge, Centene, Charter Communications, DirecTV, Highmark, Hill-Rom, ITT Education, Link Staffing, Luxxotica, NetJets, Petsmart, Salt River Project, Securian, Solucient, Synovate and many others;
--Added approximately 133 consulting colleagues during the year;
--Strengthened our corporate infrastructure to accommodate additional anticipated growth;
--Earned IBM’s Value Advantage Plus Five Star Partner Award, an honor granted to only five IBM Business Partners worldwide;
--Was named the sole recipient of the IBM Americas Business Partner Leadership Award;
--Received the Outstanding Revenue Growth Award and was named the fifth fastest-growing solution provider in North America by VARBusiness magazine;
-- Was recognized by VARBusiness magazine for the fourth consecutive year as a member of the VARBusiness 500, an annual listing of the top solution providers in the United States by revenue;
-- Was named for the third consecutive year to Deloitte & Touche’s Texas Fast50, a listing of the fastest growing technology companies in Texas, from 2000-2004;
--Moved up to the NASDAQ National Market stock exchange;
-- Increased the total size of our credit facility with Silicon Valley Bank and KeyBanc Capital Markets from $13 million to $28.5 million; and
-- Continued an active investor relations program, presenting at multiple industry conferences and meeting with dozens of institutional investors across the country.
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 Q1 2006 services and software revenue, including reimbursed expenses, to be in the range of $26.5 million to $27.9 million, comprised of $25.5 million to $26.8 million of revenue from services including reimbursed expenses and $1.0 million to $1.1 million of revenue from sales of software. The guidance range of services revenue including reimbursed expenses would represent services revenue growth of 39% to 46% over the first quarter of 2005.
Conference Call Details
Perficient will host a conference call regarding fourth quarter and full year 2005 financial results today at 4:30 p.m. EST.
WHAT: Perficient Fourth Quarter and Full Year 2005 Results
WHEN: Tuesday, February 28, 2006, at 4:30 p.m. EST
CONFERENCE CALL NUMBERS: 866-271-6130 (U.S. and Canada) 617-213-8894 (International)
PARTICIPANT PASSCODE: 30097097
REPLAY TIMES: Tuesday, February 28, 2006, at 6:30 p.m. EST, through Tuesday, March 7, 2006
REPLAY NUMBER: 888-286-8010 (U.S. and Canada) 617-801-6888 (International)
REPLAY PASSCODE: 42954858
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, a Microsoft Gold Certified Partner and a Documentum Select Services Team Partner. For more information about Perficient, which employs more than 575 professionals in the central United States and Canada, please visit www.perficient.com. IBM and WebSphere are trademarks 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. Our reported results may be subject to adjustments, reserves, and other items that may be identified during the normal year-end audit process.
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 Diluted Cash Earnings Per Share (“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.