IMRglobal Reports First Quarter Results: Revenue Up 16% Sequentially Over Prior Quarter
First Quarter Highlights:
-- Gross Profit increases 58% over previous quarter.
-- Returned to profitability with 16% increase in revenue over previous
quarter.
-- Announced Merger with CGI Group Inc.
Financial Summary
($ in thousands, except per share data)
Quarter ended
March 31,
2001 2000
Revenue $ 61,604 $ 58,320
Gross Profit $ 24,489 $ 23,578
EBITDA (*) $6,781 $6,512
Cash EPS $0.09 $0.10
* Earnings before interest, taxes, depreciation and amortization.
Apr 26, 2001, 01:00 ET from IMRglobal
CLEARWATER, Fla., April 26 /PRNewswire/ -- IMRglobal Corp. ("IMRglobal" or
the "Company") (Nasdaq: IMRS), a leading global provider of end-to-end
information technology solutions, today announced results for the first
quarter ended March 31, 2001.
Revenue was $61.6 million for the first quarter ended March 31, 2001, an
increase of 6% over the $58.3 million reported for the same quarter last year,
and an increase of 16% over the $53.3 million for the fourth quarter of 2000.
On a pro forma basis (excluding depreciation and amortization expenses, net of
taxes), cash net income was $4.0 million for the quarter ended March 31, 2001.
On the same pro forma basis, cash earnings per share-diluted was $0.09 for the
quarter ended March 31, 2001.
Satish K. Sanan, Chief Executive officer of IMRglobal, said, "Despite the
difficult general economic and industry specific market conditions, we are
pleased to report meaningful organic growth compared to both the prior quarter
and the same period last year. In addition, we are encouraged by the
significant opportunities in our sales pipeline for our insurance and
healthcare solutions. In particular, our strong vertical industry expertise,
our eCRM tools and solutions, and our component based development solutions
are providing the 'sharp edges' that differentiate IMRglobal from many of our
competitors enabling us to establish new customer relationships."
Mr. Sanan continued, "I am also pleased to report that our proposed merger
with CGI Group Inc. is on track. As previously reported, we expect to be able
to seek shareholders' approval in June. We are pleased with our choice of CGI
as our strategic partner. The growing demand for business process and I.T.
outsourcing make the merger particularly timely. CGI's outsourcing
experience, combined with IMRglobal's vertical industry solutions and
knowledge, strong U.S. presence and India software development centers, will
give the combined company a competitive edge and position us to make
significant inroads in the U.S. outsourcing market."
About IMRglobal Corp.
IMRglobal is a leading global provider of end-to-end information
technology solutions to Fortune 500 and Global 2000 companies in key vertical
industries. Those industries include financial services, healthcare,
government, utilities, retail & distribution and manufacturing/distribution.
IMRglobal's services include business consulting, e-business, software
development, application management and professional services. For more
information on IMRglobal, visit http://www.imrglobal.com .
Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: With the exception of statements regarding historical matters and
statements regarding the company's current status, certain matters discussed
herein are forward-looking statements that involve substantial risks and
uncertainties. These forward-looking statements may include those identified
by the use of the words "anticipate," "believe," "estimate," "expect,"
"intend" and similar expressions. Actual results, performance or achievements
could differ materially from these forward-looking statements. Factors that
could cause or contribute to such material differences include the failure to
convert prospects into actual business, risks related to our proposed merger
with CGI, variability of operating results, potential cost overruns on fixed-
price projects and competition in the IT services industry. A discussion of
these and other risk factors that may cause actual results to differ from
these forward-looking statements can be found in the company's periodic
filings with the SEC under the Securities Exchange Act of 1934.
IMRglobal Corp.
CONDENSED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended
March 31,
2001 2000
Revenue $61,604 $58,320
Cost of revenue 37,115 34,742
Gross profit 24,489 23,578
Percentage of revenue 40% 40%
Selling, general and administrative 17,634 16,388
Research & development 74 678
Earnings before interest, taxes,
depreciation and
amortization (EBITDA) 6,781 6,512
Percentage of Revenue 11% 11%
Depreciation 1,489 1,385
Goodwill and intangible amortization 2,585 2,445
Income from operations 2,707 2,682
Other income (expense) (595) 109
Income before provision for income
taxes 2,112 2,791
Provision for income taxes 1,437 1,258
Net income $675 $1,533
Earnings per share - diluted $0.02 $0.04
Pro forma "cash" net income (A) $4,022 $4,302
Pro forma "cash" earnings
per share - diluted (A) $0.09 $0.10
Shares outstanding - diluted 44,435 42,335
(A) Pro forma "cash" net income and earnings per share-diluted exclude
amortization and depreciation, net of income taxes
IMRglobal Corp.
CONDENSED BALANCE SHEETS
(In thousands)
March 31, December 31,
2001 2000
Assets
Current assets:
Cash $10,963 $19,689
Accounts receivable, net 47,395 41,738
Unbilled work in process 17,588 13,747
Other current assets 17,771 18,254
Total current assets 93,717 93,428
Property and equipment, net 40,709 41,521
Other assets 174,248 183,886
Total assets $308,674 $318,835
Liabilities and Shareholders' Equity
Deferred revenue $5,195 $6,360
Other current liabilities 39,216 43,516
Total current liabilities 44,411 49,876
Long Term Debt 31,050 30,894
Other Liabilities 5,512 6,285
Total liabilities 80,973 87,055
Shareholders' equity 227,701 231,780
Total liabilities and
shareholders' equity $308,674 $318,835
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SOURCE IMRglobal
CLEARWATER, Fla., April 26 /PRNewswire/ -- IMRglobal Corp. ("IMRglobal" or
the "Company") (Nasdaq: IMRS), a leading global provider of end-to-end
information technology solutions, today announced results for the first
quarter ended March 31, 2001.
Revenue was $61.6 million for the first quarter ended March 31, 2001, an
increase of 6% over the $58.3 million reported for the same quarter last year,
and an increase of 16% over the $53.3 million for the fourth quarter of 2000.
On a pro forma basis (excluding depreciation and amortization expenses, net of
taxes), cash net income was $4.0 million for the quarter ended March 31, 2001.
On the same pro forma basis, cash earnings per share-diluted was $0.09 for the
quarter ended March 31, 2001.
Satish K. Sanan, Chief Executive officer of IMRglobal, said, "Despite the
difficult general economic and industry specific market conditions, we are
pleased to report meaningful organic growth compared to both the prior quarter
and the same period last year. In addition, we are encouraged by the
significant opportunities in our sales pipeline for our insurance and
healthcare solutions. In particular, our strong vertical industry expertise,
our eCRM tools and solutions, and our component based development solutions
are providing the 'sharp edges' that differentiate IMRglobal from many of our
competitors enabling us to establish new customer relationships."
Mr. Sanan continued, "I am also pleased to report that our proposed merger
with CGI Group Inc. is on track. As previously reported, we expect to be able
to seek shareholders' approval in June. We are pleased with our choice of CGI
as our strategic partner. The growing demand for business process and I.T.
outsourcing make the merger particularly timely. CGI's outsourcing
experience, combined with IMRglobal's vertical industry solutions and
knowledge, strong U.S. presence and India software development centers, will
give the combined company a competitive edge and position us to make
significant inroads in the U.S. outsourcing market."
About IMRglobal Corp.
IMRglobal is a leading global provider of end-to-end information
technology solutions to Fortune 500 and Global 2000 companies in key vertical
industries. Those industries include financial services, healthcare,
government, utilities, retail & distribution and manufacturing/distribution.
IMRglobal's services include business consulting, e-business, software
development, application management and professional services. For more
information on IMRglobal, visit http://www.imrglobal.com .
Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: With the exception of statements regarding historical matters and
statements regarding the company's current status, certain matters discussed
herein are forward-looking statements that involve substantial risks and
uncertainties. These forward-looking statements may include those identified
by the use of the words "anticipate," "believe," "estimate," "expect,"
"intend" and similar expressions. Actual results, performance or achievements
could differ materially from these forward-looking statements. Factors that
could cause or contribute to such material differences include the failure to
convert prospects into actual business, risks related to our proposed merger
with CGI, variability of operating results, potential cost overruns on fixed-
price projects and competition in the IT services industry. A discussion of
these and other risk factors that may cause actual results to differ from
these forward-looking statements can be found in the company's periodic
filings with the SEC under the Securities Exchange Act of 1934.
IMRglobal Corp.
CONDENSED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended
March 31,
2001 2000
Revenue $61,604 $58,320
Cost of revenue 37,115 34,742
Gross profit 24,489 23,578
Percentage of revenue 40% 40%
Selling, general and administrative 17,634 16,388
Research & development 74 678
Earnings before interest, taxes,
depreciation and
amortization (EBITDA) 6,781 6,512
Percentage of Revenue 11% 11%
Depreciation 1,489 1,385
Goodwill and intangible amortization 2,585 2,445
Income from operations 2,707 2,682
Other income (expense) (595) 109
Income before provision for income
taxes 2,112 2,791
Provision for income taxes 1,437 1,258
Net income $675 $1,533
Earnings per share - diluted $0.02 $0.04
Pro forma "cash" net income (A) $4,022 $4,302
Pro forma "cash" earnings
per share - diluted (A) $0.09 $0.10
Shares outstanding - diluted 44,435 42,335
(A) Pro forma "cash" net income and earnings per share-diluted exclude
amortization and depreciation, net of income taxes
IMRglobal Corp.
CONDENSED BALANCE SHEETS
(In thousands)
March 31, December 31,
2001 2000
Assets
Current assets:
Cash $10,963 $19,689
Accounts receivable, net 47,395 41,738
Unbilled work in process 17,588 13,747
Other current assets 17,771 18,254
Total current assets 93,717 93,428
Property and equipment, net 40,709 41,521
Other assets 174,248 183,886
Total assets $308,674 $318,835
Liabilities and Shareholders' Equity
Deferred revenue $5,195 $6,360
Other current liabilities 39,216 43,516
Total current liabilities 44,411 49,876
Long Term Debt 31,050 30,894
Other Liabilities 5,512 6,285
Total liabilities 80,973 87,055
Shareholders' equity 227,701 231,780
Total liabilities and
shareholders' equity $308,674 $318,835
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SOURCE IMRglobal
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