PRG SCHULTZ INTERNATIONAL INC

CIK:0001007330|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Revenue, net	$ 41,532	$ 42,290	$ 117,382	$ 123,068
Operating expenses:
Cost of revenue	20,813	25,539	63,931	77,086
Selling, general and administrative expenses	13,751	13,544	41,941	43,209
Depreciation of property, equipment and software assets	1,295	2,648	5,401	7,232
Amortization of intangible assets	830	864	2,487	2,598
Impairment charges	553	0	553	0
Acquisition-related adjustment income	0	(250)	0	(250)
Total operating expenses	37,242	42,345	114,313	129,875
Operating income (loss) from continuing operations	4,290	(55)	3,069	(6,807)
Foreign currency transaction losses on short-term intercompany balances	(418)	905	219	1,034
Interest expense, net	216	376	861	1,441
Other loss (income)	2	4	4	(4)
Income (loss) from continuing operations before income tax	4,490	(1,340)	1,985	(9,278)
Income tax expense	1,456	202	2,416	681
Net income (loss) from continuing operations	3,034	(1,542)	(431)	(9,959)
Discontinued operations:
Income from discontinued operations	0	900	0	642
Net income from discontinued operations	0	900	0	642
Net income (loss)	$ 3,034	$ (642)	$ (431)	$ (9,317)
Basic income (loss) per common share (Note 2):
Basic income (loss) from continuing operations (in usd per share)	$ 0.13	$ (0.07)	$ (0.02)	$ (0.44)
Basic income from discontinued operations (in usd per share)	0	0.04	0	0.03
Total basic income (loss) per share (in usd per share)	0.13	(0.03)	(0.02)	(0.41)
Diluted income (loss) per common share (Note 2):
Diluted income (loss) from continuing operations (in usd per share)	0.13	(0.07)	(0.02)	(0.44)
Diluted income from discontinued operations (in usd per share)	0	0.04	0	0.03
Total diluted income (loss) per common share (in usd per share)	$ 0.13	$ (0.03)	$ (0.02)	$ (0.41)
Weighted-average common shares outstanding (Note 2):
Basic (in shares)	22,695	22,770	22,597	22,715
Diluted (in shares)	23,018	22,770	22,597	22,715
Revenue, Product and Service [Extensible List]			us-gaap:ServiceMember

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income (loss)	$ (431)	$ (9,317)
Adjustments to reconcile net loss to net cash provided by operating activities:
Impairment charges	553	0
Depreciation and amortization	7,888	9,830
Operating lease right-of-use asset expense	3,100	3,363
Amortization of deferred loan costs	71	121
Noncash interest expense	205	707
Stock-based compensation expense	5,155	3,573
Change in fair value of contingent consideration	0	(250)
Foreign currency transaction losses on short-term intercompany balances	219	1,034
Deferred income taxes	250	4
Changes in operating assets and liabilities
Billed receivables	1,760	8,796
Unbilled receivables	2,343	551
Prepaid expenses and other current assets	1,726	(980)
Operating lease liabilities	(2,912)	(3,264)
Other assets	(30)	(60)
Accounts payable and accrued expenses	(1,405)	(4,117)
Accrued payroll and related expenses	4,216	(3,514)
Refund liabilities	19	(2,437)
Deferred revenue	(378)	(832)
Net cash provided by operating activities	22,349	3,208
Cash flows from investing activities:
Purchases of property, equipment and software, net of disposal proceeds	(8,321)	(11,679)
Net cash used in investing activities	(8,321)	(11,679)
Cash flows from financing activities:
Repayments of credit facility	(44,000)	(8,000)
Proceeds from credit facility	38,000	22,400
Payment of deferred loan costs	0	(394)
Payment of earnout liability related to business acquisitions	0	(4,229)
Restricted stock repurchased from employees for withholding taxes	(404)	(760)
Repurchases of common stock	(284)	(4,212)
Proceeds from option exercises	0	221
Net cash (used in) provided by financing activities	(6,688)	5,026
Effect of exchange rates on cash and cash equivalents	378	663
Net increase (decrease) in cash, cash equivalents and restricted cash	7,718	(2,782)
Cash, cash equivalents and restricted cash at beginning of period	15,028	14,019
Cash, cash equivalents and restricted cash at end of period	22,746	11,237
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	1,014	728
Cash paid during the period for income taxes, net of refunds received	$ 1,486	$ 2,118

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 22,625	$ 14,982
Restricted cash	121	46
Receivables:
Billed	35,977	38,201
Unbilled	2,786	4,911
Net receivables	38,763	43,112
Employee advances and miscellaneous receivables, net	995	704
Total receivables	39,758	43,816
Prepaid expenses and other current assets	3,586	5,582
Total current assets	66,090	64,426
Property, equipment and software	69,832	63,557
Less accumulated depreciation and amortization	(49,266)	(45,811)
Property, equipment and software, net	20,566	17,746
Operating lease right-of-use assets (Note 9)	10,226	10,969
Goodwill	15,027	15,070
Intangible assets, less accumulated amortization of $49,369 in 2020 and $47,097 in 2019	8,963	11,506
Unbilled receivables	1,065	1,282
Deferred income taxes	3,689	3,921
Other assets	519	546
Total assets	126,145	125,466
Current liabilities:
Accounts payable and accrued expenses	4,462	4,326
Accrued payroll and related expenses	17,148	12,951
Current portion of operating lease liabilities (Note 9)	4,117	3,717
Refund liabilities	4,443	4,513
Deferred revenue	1,821	2,217
Current portion of debt (Note 5)	0	17
Total current liabilities	31,991	27,741
Long-term debt (Note 5)	30,673	36,603
Long-term operating lease liabilities (Note 9)	6,482	7,435
Refund liabilities	64	9
Deferred income taxes (Note 8)	628	628
Total liabilities	69,838	72,416
Commitments and contingencies (Note 7)
Shareholders’ equity (Note 2):
Common stock, no par value; $.01 stated value per share. Authorized 50,000,000 shares; 23,561,493 shares issued and outstanding at September 30, 2020 and 23,369,433 shares issued and outstanding at December 31, 2019	236	234
Additional paid-in capital	586,876	582,404
Accumulated deficit	(529,607)	(529,176)
Accumulated other comprehensive loss	(1,198)	(412)
Total shareholders’ equity	56,307	53,050
Total liabilities and shareholders' equity	$ 126,145	$ 125,466
Common Stock, No Par Value	$ 0	$ 0