COMPUTER TASK GROUP INC

CIK:0000023111|SEC Filings

Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2023	Sep. 30, 2022	Sep. 29, 2023	Sep. 30, 2022
Income Statement [Abstract]
Revenue	$ 71,291	$ 75,002	$ 224,081	$ 247,178
Cost of services	51,824	56,773	163,484	188,604
Gross profit	19,467	18,229	60,597	58,574
Selling, general and administrative expenses	20,071	15,976	60,209	49,949
Operating income (loss)	(604)	2,253	388	8,625
Interest and other income	50	133	250	323
Interest and other expense	545	525	1,339	1,357
Income (loss) before income taxes	(1,099)	1,861	(701)	7,591
Provision (benefit) for income taxes	(228)	759	(15)	2,209
Net income (loss)	$ (871)	$ 1,102	$ (686)	$ 5,382
Net income (loss) per share
Basic	$ (0.06)	$ 0.08	$ (0.05)	$ 0.37
Diluted	$ (0.06)	$ 0.07	$ (0.05)	$ 0.36
Weighted average shares outstanding:
Basic	14,903	14,480	14,813	14,366
Diluted	14,903	15,157	14,813	15,086

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 29, 2023	Sep. 30, 2022
Cash flow from operating activities:
Net income (loss)	$ (686)	$ 5,382
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization expense	2,750	2,051
Equity-based compensation expense	1,077	1,869
Deferred income taxes	(1,730)	(138)
Deferred compensation benefits	555	(152)
Loss on the sale of property and equipment	4
Changes in assets and liabilities that provide (use) cash, excluding the effects of acquisitions:
Accounts receivable	6,247	11,614
Prepaid and other current assets	(923)	(395)
Other long-term assets	(213)	(41)
Cash surrender value of life insurance	(55)	525
Accounts payable	(5,089)	(10,159)
Accrued compensation	(394)	(63)
Income taxes payable / receivable	(378)	1,189
Advance billings on contracts	(1,026)	670
Other current liabilities	3,536	151
Other long-term liabilities	(893)	6
Net cash provided by operating activities	2,782	12,509
Cash flow from investing activities:
Cash paid for acquisitions, net of cash acquired	82	(16,568)
Additions to property and equipment	(1,288)	(479)
Additions to capitalized software	(1,207)	(285)
Proceeds from sale of property & equipment	4	9
Premiums paid for life insurance	(647)	(594)
Net cash used in investing activities	(3,056)	(17,917)
Cash flow from financing activities:
Proceeds from long-term debt	20,653
Payments on long-term debt	(20,653)
Payment of contingent consideration	(913)
Proceeds from stock option plan exercises	174	215
Taxes remitted for shares withheld from equity-based compensation transactions	(629)	(1,230)
Proceeds from Employee Stock Purchase Plan	108	131
Change in cash overdraft, net	474
Net cash used in financing activities	(786)	(884)
Effect of exchange rates on cash and cash equivalents	(11)	(2,539)
Net decrease in cash and cash equivalents	(1,071)	(8,831)
Cash and cash equivalents at beginning of year	25,140	35,584
Cash and cash equivalents at end of quarter	$ 24,069	26,753
Supplemental disclosure of non-cash transactions
Acquisition share issuance		1,178
Acquisition stock option issuance		$ 391

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 29, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 24,069	$ 25,140
Accounts receivable, net of allowances of $421 and $397 in 2023 and 2022, respectively	64,433	70,979
Prepaid and other current assets	4,930	3,769
Income taxes receivable	142
Total current assets	93,574	99,888
Property, equipment and capitalized software, net	6,045	5,061
Operating lease right-of-use assets	19,478	18,506
Deferred income taxes	4,386	2,886
Acquired intangibles, net	11,639	12,943
Goodwill	35,487	35,998
Cash surrender value of life insurance, net	4,822	4,120
Other assets	2,308	2,101
Investments	174	116
Total assets	177,913	181,619
Current Liabilities:
Accounts payable	9,661	14,254
Accrued compensation	18,521	19,016
Advance billings on contracts	4,492	5,480
Short-term operating lease liabilities	6,186	5,905
Other current liabilities	9,674	7,066
Income taxes payable		212
Total current liabilities	48,534	51,933
Deferred compensation benefits	6,720	6,424
Long-term operating lease liabilities	13,412	12,466
Deferred income taxes	1,226	1,482
Other long-term liabilities	2,442	3,335
Total liabilities	72,334	75,640
Shareholders’ Equity:
Common stock, par value $0.01 per share, 150,000,000 shares authorized; 27,017,824 shares issued in 2023 and 2022	270	270
Capital in excess of par value	107,269	109,868
Retained earnings	113,965	114,651
Less: Treasury stock of 10,940,680 and 11,274,171 shares at cost, in 2023 and 2022, respectively	(100,175)	(103,504)
Accumulated other comprehensive loss	(15,750)	(15,306)
Total shareholders’ equity	105,579	105,979
Total liabilities and shareholders’ equity	$ 177,913	$ 181,619