Securities and Exchange Commission
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) May 5, 2005
PERFICIENT, INC.
Delaware | 001-15169 | 74-2853258 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1120 South Capital of Texas Highway, Suite 220, Building 3, Austin, Texas | 78746 | |
(Address of Principal Executive Offices) | (Zip Code) |
Registrants telephone number, including area code (512) 531-6000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On May 5, 2005, Perficient, Inc. announced its financial results for the three months ended March 31, 2005. A copy of the press release issued on May 5, 2005 concerning the financial results is filed herewith as Exhibit 99.1.
The information in this Current Report on Form 8-K is being furnished and shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section.
USE OF NON-GAAP FINANCIAL INFORMATION
To supplement our consolidated financial statements presented in accordance with generally accepted accounting principals (GAAP), Perficient uses non-GAAP measures, such as EBITDA, which are adjusted from results based on GAAP to exclude certain expenses. Perficient believes that these non-GAAP financial measures are important representations of a companys financial performance and uses such non-GAAP information internally to evaluate and manage its 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. The non-GAAP measures presented may not be comparable to similarly titled measures presented by other companies.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits.
99.1
|
Perficient, Inc. Press Release issued on May 5, 2005 announcing financial results for the three months ended March 31, 2005. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PERFICIENT, INC. |
||||
Date: May 9, 2005 | By: | /s/ Michael D. Hill | ||
Michael D. Hill | ||||
Chief Financial Officer | ||||
Exhibit Index
Exhibit | ||
Number | Description | |
99.1
|
Press release dated May 5, 2005, of the Registrant. |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact: Bill Davis
Perficient, Inc.
314-995-8822
bill.davis@perficient.com
PERFICIENT REPORTS FIRST QUARTER 2005 RESULTS
AUSTIN, Texas May 5, 2005 Perficient, Inc. (NASDAQ: PRFT) a leading information technology consulting firm in the central United States, today reported financial results for the quarter ended March 31, 2005.
Financial Highlights
For the first quarter ended March 31, 2005:
| Revenue from services and software, net of reimbursed expenses, was up 139% to $19.1 million compared to $8.0 million during the first quarter of 2004. | |||
| Net income was up 140% to $1.5 million compared to $621 thousand during the first quarter of 2004. | |||
| Diluted earnings per share were up 50% to $0.06 compared to $0.04 per share during the first quarter of 2004. | |||
| Diluted cash earnings per share1 were up 75% to $0.07 compared to $0.04 per share during the first quarter of 2004. | |||
| Gross margin for services revenue was 36.8% compared to 42.9% in the first quarter of 2004. Gross margin for software revenue was 16.2%, compared to 13.3% in the first quarter of 2004. | |||
| EBITDA2 was up 152% to $3.0 million versus $1.2 million during the first quarter of 2004. |
Our Q1 results demonstrate were off to a great start for 2005, said Jack McDonald, Perficients chairman and chief executive. We achieved record services revenues, EBITDA, operating margins and earnings per share. Our project backlog, sales pipeline and market momentum have us positioned to achieve strong organic growth throughout 2005. In addition, we have a robust acquisitions pipeline and recently secured a $25 million debt facility commitment that will allow us to fund the cash portion of approximately $50 million in acquisitions this year.
Other Q1 Highlights
Among other achievements in Q1 2005, Perficient:
Received the IBM Americas Business Partner Leadership Award, a prestigious international award that recognizes IBM Business Partners worldwide, across all lines of business, for outstanding success in delivering solutions that leverage IBM products. Perficient was one of 15 companies worldwide to receive the 2004 IBM Business Partner Leadership Award among thousands eligible;
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. |
Added new customer relationships and follow-on projects with leading companies including: Bankers Life, Chicago Board of Trade, Charter Communications, Cingular, Cummins Engine, Federal Mogul, Komatsu, Owens Corning, Shell Oil, Solucient, Spark Energy and many others;
Chairman and CEO Jack McDonald accepted an invitation to join the VARBusiness 500 Advisory Board, an exclusive, 10-member group that counsels VARBusiness magazine, the countrys leading information technology consulting trade publication, a recognition of Perficients growing status and influence in the information technology consulting industry; and
Completed the integration of Zettaworks, LLC, a $16 million revenue Houston-based enterprise application integration consulting firm acquired in December 2004.
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 Q2 2005 services and software revenue, net of reimbursed expenses, to be in the range of $18.7 million to $20.1 million, comprised of $17.8 million to $18.8 million in services and Perficient-developed software revenue and $900 thousand to $1.3 million in revenue from sales of third-party software. The Companys guidance policy on software includes software sales actually booked as of the guidance date and a software revenue forecast based on the Companys software sales pipeline. The Q2 2005 forecast range of services revenue would represent services revenue growth of approximately 84% to 95% over the second quarter of 2004.
Conference Call Details
Perficient will host a conference call regarding first quarter 2005 financial results today at 4:30
p.m. Eastern.
WHAT: Perficient First Quarter and 2005 Results
WHEN: Thursday, February 5, 2005, at 4:30 p.m. Eastern
CONFERENCE CALL NUMBERS: 800-299-0148 (U.S. and Canada) 617.801.9711 (International)
PARTICIPANT PASSCODE: 24590210
REPLAY TIMES: Thursday, May 5, 2005, at 6:30 p.m. Eastern, through Thursday, May 12, 2005
REPLAY NUMBER: 888-286-8010 (U.S. and Canada) 617-801-6888 (International)
REPLAY PASSCODE: 98298293
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 470 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 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 Companys
growth, credit risks associated with the Companys accounts receivable, the Companys 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 Companys
filings with Securities and Exchange Commission, including the most recent Form 10-KSB and Form
10-QSB.
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 companys
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 Perficients 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.
PERFICIENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended | ||||||||
March 31, | ||||||||
2004 | 2005 | |||||||
(unaudited) | ||||||||
Revenue |
||||||||
Services |
$ | 6,663,786 | $ | 17,657,101 | ||||
Software |
1,330,476 | 1,406,856 | ||||||
Reimbursable expenses |
378,165 | 660,193 | ||||||
Total revenue |
8,372,427 | 19,724,150 | ||||||
Cost of revenue (excludes depreciation shown separately below) |
||||||||
Project personnel costs |
3,695,143 | 10,920,496 | ||||||
Software costs |
1,153,353 | 1,179,540 | ||||||
Reimbursable expenses |
378,165 | 660,193 | ||||||
Other project related expenses |
110,273 | 243,673 | ||||||
Total cost of revenue |
5,336,934 | 13,003,902 | ||||||
Gross margin |
3,035,493 | 6,720,248 | ||||||
Selling, general and administrative |
1,852,671 | 3,734,183 | ||||||
EBITDA1 |
1,182,822 | 2,986,065 | ||||||
Depreciation |
101,122 | 177,336 | ||||||
Amortization of intangibles |
50,001 | 276,876 | ||||||
Income from operations |
1,031,699 | 2,531,853 | ||||||
Interest income |
98 | 1,663 | ||||||
Interest expense |
(14,371 | ) | (112,504 | ) | ||||
Other |
2,092 | (1,163 | ) | |||||
Income before income taxes |
1,019,518 | 2,419,849 | ||||||
Provision for income taxes |
399,000 | 931,546 | ||||||
Net income |
$ | 620,518 | $ | 1,488,303 | ||||
Basic net income per share |
$ | 0.04 | $ | 0.07 | ||||
Diluted net income per share |
$ | 0.04 | $ | 0.06 | ||||
Shares used in computing basic net income per share |
14,500,158 | 21,161,659 | ||||||
Shares used in computing diluted net income per share |
17,634,229 | 24,804,451 | ||||||
Reconciliation of GAAP diluted net income per share to CEPS2: |
||||||||
Net income |
$ | 620,518 | $ | 1,488,303 | ||||
Amortization of intangibles |
50,001 | 276,876 | ||||||
Stock compensation |
12,468 | 59,157 | ||||||
Related tax effect |
(24,051 | ) | (129,373 | ) | ||||
Adjusted net income for CEPS |
$ | 658,936 | $ | 1,694,963 | ||||
CEPS2 |
$ | 0.04 | $ | 0.07 | ||||
1 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.
2 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.
PERFICIENT, INC.
CONSOLIDATED BALANCE SHEETS
December 31, | March 31, | |||||||
2004 | 2005 | |||||||
(unaudited) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash |
$ | 3,905,460 | $ | 3,958,732 | ||||
Accounts receivable, net |
20,049,500 | 17,562,434 | ||||||
Other current assets |
336,309 | 708,150 | ||||||
Total current assets |
24,291,269 | 22,229,316 | ||||||
Net property and equipment |
805,831 | 800,207 | ||||||
Net intangible assets |
37,339,891 | 36,973,016 | ||||||
Other noncurrent assets |
145,374 | 862,364 | ||||||
Total assets |
$ | 62,582,365 | $ | 60,864,903 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 6,927,523 | $ | 2,665,840 | ||||
Current portion of long term debt |
1,135,354 | 3,268,987 | ||||||
Other current liabilities |
6,750,968 | 4,679,730 | ||||||
Current portion of notes payable to related parties |
243,847 | 248,448 | ||||||
Total current liabilities |
15,057,692 | 10,863,005 | ||||||
Long term debt, net of current portion |
2,676,027 | 2,350,403 | ||||||
Accrued income taxes, net of current portion |
| | ||||||
Notes payable to related parties, net of current portion |
226,279 | 230,548 | ||||||
Total liabilities |
17,959,998 | 13,443,956 | ||||||
Stockholders equity: |
||||||||
Common stock |
20,914 | 21,303 | ||||||
Additional paid-in capital |
102,637,699 | 103,909,232 | ||||||
Deferred stock compensation |
(1,656,375 | ) | (1,597,219 | ) | ||||
Accumulated other comprehensive loss |
(57,837 | ) | (78,637 | ) | ||||
Accumulated deficit |
(56,322,034 | ) | (54,833,731 | ) | ||||
Total stockholders equity |
44,622,367 | 47,420,948 | ||||||
Total liabilities and stockholders equity |
$ | 62,582,365 | $ | 60,864,903 | ||||