Diamond Management & Technology Consultants, Inc. (NASDAQ:
DTPI), a premier global management and technology consulting firm,
today announced results for its first quarter of fiscal year
2011.
Net revenue for the first quarter ended June 30, 2010 was $52.0
million, an increase of 3% compared with $50.3 million in the
fourth quarter of fiscal year 2010, and an increase of 37% compared
with $37.9 million reported in the first quarter of the prior
fiscal year.
Pretax income was $6.3 million in the first quarter of fiscal
year 2011 compared with $5.8 million in the fourth quarter of
fiscal year 2010 and $1.9 million in the first quarter of fiscal
year 2010. Pretax margin increased to 12.2%, up from 11.5% in the
previous quarter and 5% in the first quarter last year.
Income from continuing operations after taxes in the first
quarter of fiscal year 2011 was $3.3 million, or $0.12 per diluted
share. This compares to $7.2 million, or $0.26 per diluted share,
in the fourth quarter of fiscal year 2010 which included a one-time
valuation allowance reversal benefit, and $0.8 million, or $0.03
per diluted share, in the first quarter of fiscal year 2010.
Diluted weighted average shares outstanding was 28.4 million
compared with 27.8 million in the fourth quarter of fiscal year
2010 and 27.4 million in the first quarter of fiscal year 2010,
driven primarily by an increase in stock price.
The reported effective tax rate was 48% in the first quarter of
fiscal year 2011 compared with negative 25% in the fourth quarter
of fiscal year 2010 and 55% in the first quarter of fiscal year
2010. During the fourth quarter of fiscal 2010, the company
reversed a deferred tax asset valuation allowance in the United
Kingdom resulting in a one-time income tax benefit of $3.4 million,
which caused the negative reported effective tax rate for the
quarter.
EBITDA (defined as income from continuing operations before
interest, taxes, depreciation, and amortization) was $6.7 million
in the first quarter of fiscal year 2011 compared with $6.2 million
in the fourth quarter of fiscal year 2010 and $2.4 million in the
first quarter of fiscal year 2010.
Free cash flow (cash flow provided by operating activities less
capital expenditures) was $8.8 million in the first quarter of
fiscal year 2011 compared with $7.8 million in the fourth quarter
of fiscal year 2010 and $3.6 million in the first quarter of fiscal
year 2010. The Company ended the quarter with cash and cash
equivalents of $60.2 million. The $60.2 million cash balance does
not include $4.1 million in restricted cash that was released in
July.
During the first quarter, Diamond repurchased approximately
240,000 shares at an average price of $8.19 per share for a total
amount of $2 million. As of June 30th, 2010 total share repurchase
authorization was $20.1 million.
The Company also announced that its Board of Directors declared
on July 29, 2010, a quarterly dividend of $0.09 per share of common
stock, payable on September 15, 2010, to shareholders of record at
the close of business on September 1, 2010.
“Our business is performing well and the first quarter results
represent strong year over year growth and sequential improvement,”
said Adam Gutstein, President & CEO of Diamond. “Demand for our
services remains healthy across each of our industry verticals and
we anticipate continued revenue and earnings growth for the
remainder of fiscal 2011. Our performance and outlook are driven by
a combination of Diamond having the right positioning, skills and
services, while continuing to work with the very best clients.”
The Company’s first quarter fiscal 2011 financial results are
summarized as follows:
Financial Results ($ in millions except Earnings Per Share)
Q1 FY10 Q4 FY10
Q1 FY11 Net Revenue $37.9 $50.3
$52.0 Income from Continuing Operations before Income Tax
(Pretax Income) $1.9 $5.8
$6.3 Diluted Earnings Per Share
from Continuing Operations $0.03 $0.26
$0.12 Adjusted
Diluted Earnings Per Share from Continuing Operations(1) $0.03
$0.11
$0.12 EBITDA $2.4 $6.2
$6.7 Free Cash Flow $3.6
$7.8
$8.8 (1) Excluding the one-time tax benefit from an
income tax valuation allowance reversal in the UK and using a 49%
tax rate from the preceding quarter, fourth quarter fiscal year
2010 EPS would have been $0.11 per share.
The Company’s business metrics are
summarized as follows:
Q1 FY10 Q4 FY10
Q1 FY11
Total Clients 61 66
67 Top 5 Client Concentration (% of Net
Revenue) 34%
42%
42% New Clients Added 10 16
13 Revenue Generated from
New Clients 6%
4%
3%
Days Receivables Outstanding 31 35
32 Client-Serving
Professionals (Quarter End) 441
527
532
Revenue per Professional (Annualized, $ in thousands) $335 $393
$393 Chargeability 74% 77%
75% Voluntary Attrition
(Annualized) 13% 14%
17% Total Headcount (Quarter End) 551
643
652 Revenue By Industry Q1 FY10 Q4 FY10
Q1 FY11 Financial Services 33% 32%
30% Insurance 24%
25%
26% Healthcare 19% 20%
21% Enterprise* 18% 19%
19% Public Sector 6% 4%
4% *The enterprise vertical
includes telecommunications, consumer packaged goods, travel and
entertainment, retail and distribution, and manufacturing and
logistics.
Q2 and FY2011 Guidance
Second quarter net revenue is anticipated to be in the range of
$52 to $54 million, pretax income is anticipated to be in the range
of $6.3 to $7 million and GAAP EPS to be in the range of $0.12 to
$0.14 per diluted share. The company expects stock based
compensation to be $1.3 million, reported tax expense to be in the
range of $2.9 to $3.1 million, weighted average share count of
approximately 28.5 million and free cash flow of $12 to $14
million. The company expects to end the September quarter with 575
to 585 consultants.
For the full fiscal year of 2011, Diamond anticipates net
revenue to be in the range of $214 to $220 million, up 21% to 24%
year-over-year. The Company expects pretax income in the range of
$28 to $29.5 million, GAAP EPS in the range of $0.53 to $0.57 and
stock based compensation expense to be $5.3 million. Reported tax
expense is projected to be in the range of $12.7 to $13.2 million,
and weighted average share count is expected to be 28.8 million.
Free cash flow is expected to be at least $20 million.
Q2 and FY2011 Guidance (in
millions, except Earnings Per Share)
Q2 FY11
FY11 Revenue
$52 – $54
$214 – $220 Pretax Income $6.3 –
$7.0
$28 – $29.5
Reported Tax Expense $2.9 – $3.1
$12.7 – $13.2
Weighted Avg. Share Count 28.5
28.8 Earnings Per Share
$0.12 – $0.14
$0.53 – $0.57
Free Cash Flow $12 – $14
> $20
Conference Call
Diamond will host a conference call today, August 4, 2010, at
8:00 am CT to discuss the results of the quarter. The dial-in
number for the conference call is (800) 926-6734 for North American
callers and (212) 231-2903 for international callers. A replay of
the call will be available over the Internet beginning shortly
after the call ends. The call will be broadcast live and archived
on Diamond’s web site at www.diamondconsultants.com. You may also
listen to a telephonic replay of the discussion beginning
approximately one hour after the completion of the call through
9:00 AM CT on August 11, 2010. The replay can be accessed by
calling (800) 633-8284 or (402) 977-9140, then entering passcode
number 21477133.
About Diamond
Clients engage Diamond Management & Technology Consultants,
Inc. (NASDAQ: DTPI) to help their companies grow, improve margins,
and increase the productivity of their investments. Working
together to design and execute business strategies that capitalize
on changing market forces and technology, Diamond’s consultants are
experts in helping clients attract and retain customers, increase
the value of their information, and plan and execute projects that
turn strategy into measurable results.
Diamond’s capabilities are rooted in deep strategy, technology,
operations, and industry experience. The firm’s approach to client
service is based on objectivity, collaboration, and an unwavering
commitment to its clients’ best interests. Headquartered in
Chicago, Diamond has offices in New York, Washington, D.C,
Hartford, London, and Mumbai. To learn more, visit:
www.diamondconsultants.com.
Forward-Looking Statements
Statements in this press release that do not involve strictly
historical or factual matters are forward-looking statements within
the meaning of the “safe harbor” provisions of the federal
securities laws. Forward-looking statements involve estimates,
projections, assumptions, risks, and uncertainties and speak only
as of the date of this release based on information available to
the Company as of the date of this release, and the Company assumes
no obligation to update any forward-looking statements. Actual
results may differ materially from the results projected in any
forward-looking statement. For a discussion of some of the risks
and uncertainties that could cause actual results to differ
materially, please refer to the risks and uncertainties identified
in our filings with the SEC.
Non-GAAP Financial Measures
The press release includes non-GAAP financial measures. For a
description of these non-GAAP financial measures, including the
reasons management believes the non-GAAP measures are useful to
investors, and reconciliations of these non-GAAP financial measures
to the most directly comparable financial measures prepared in
accordance with U.S. generally accepted accounting principles
(GAAP), please see the section entitled “Unaudited Reconciliations
of GAAP to Non-GAAP Financial Measures.”
DIAMOND MANAGEMENT & TECHNOLOGY CONSULTANTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In
thousands, except per share data) For the
Three Months Ended June 30, 2009 2010 (Unaudited) (Unaudited)
Revenue: Net revenue $ 37,892 $ 52,002 Reimbursable expenses
7,080 9,171 Total revenue 44,972 61,173
Project personnel expenses: Project personnel costs before
reimbursable expenses 28,621 35,740 Reimbursable expenses
7,080 9,171 Total project personnel expenses
35,701 44,911 Gross margin 9,271
16,262 Other operating expenses: Professional
development and recruiting 706 2,133 Marketing and sales 541 804
Management and administrative support 6,103
6,925 Total other operating expenses 7,350
9,862 Income from Operations 1,921 6,400
Other expense, net (19 ) (57 ) Income
from continuing operations before income taxes 1,902 6,343
Income tax expense 1,055 3,037
Income from continuing operations after income taxes 847 3,306
Discontinued operations: Income from discontinued
operations, net of income taxes 85 -
Net Income $ 932 $ 3,306 Basic income
per share of common stock: Income from continuing operations $ 0.03
$ 0.12 Income from discontinued operations 0.00
- Net income $ 0.03 $ 0.12
Diluted income per share of common stock: Income from continuing
operations $ 0.03 $ 0.12 Income from discontinued operations
0.00 - Net income $ 0.03 $ 0.12
Shares used in computing basic income per share 27,273
27,105 Shares used in computing diluted income per share
27,369 28,394 The following amounts of stock-based
compensation expense ("SBC") are included in each of the respective
expense categories reported above: For the Three Months
Ended June 30, 2009 2010 (Unaudited) (Unaudited) Project
personnel costs before reimbursable expenses $ 842 $ 840
Professional development and recruiting 12 13 Marketing and sales
90 107 Management and administrative support 373
367 Total SBC $ 1,317 $ 1,327
DIAMOND MANAGEMENT & TECHNOLOGY CONSULTANTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
March 31, June 30,
ASSETS 2010 2010
(Unaudited) Current assets: Cash and cash equivalents $ 55,834 $
60,204 Restricted Cash 4,104 4,104 Accounts receivable, net of
allowance of $477 and $510 as of March 31 and June 30, 2010,
respectively 22,947 21,378 Income taxes receivable - 2,682 Deferred
tax asset - current portion 6,888 2,754 Prepaid expenses and other
current assets 3,066 3,236 Total
current assets 92,839 94,358 Computers, equipment, leasehold
improvements and software, net 3,667 3,858 Deferred tax asset -
long-term portion 7,911 7,237 Other assets 1,584
1,316 Total assets $ 106,001 $ 106,769
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable $ 5,613 $ 3,922 Income
taxes payable - current portion 2,752 - Accrued compensation 17,741
22,044 Accrued benefits 2,355 2,986 Other accrued liabilities
5,632 5,909 Total current
liabilities 34,093 34,861 Deferred rent - long term portion
1,613 1,573 Accrued income tax liabilities - long-term portion
585 585 Total liabilities 36,291
37,019 Commitments and contingencies Stockholders' equity:
Common stock, net, 27,252 and 27,278 shares issued and outstanding
as of March 31 and June 30, 2010, respectively 511,650 511,008
Accumulated other comprehensive loss (4,423 ) (4,593 ) Accumulated
deficit (437,517 ) (436,665 ) Total
stockholders' equity 69,710 69,750
Total liabilities and stockholders' equity $ 106,001
$ 106,769
DIAMOND MANAGEMENT &
TECHNOLOGY CONSULTANTS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (1) (In thousands)
For the Three Months Ended June 30, 2009 2010 (Unaudited)
(Unaudited) Cash flows from operating activities: Net income $ 932
$ 3,306 Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 489 431
Stock-based compensation 1,317 1,327 Deferred income taxes 6,839
4,786 Excess tax benefits from employee stock plans (5 ) (324 )
Changes in assets and liabilities: Accounts receivable 1,020 1,549
Prepaid expenses and other (110 ) (316 ) Accounts payable (904 )
(1,512 ) Accrued compensation 331 4,298 Income taxes payable /
receivable (6,512 ) (5,283 ) Other assets and liabilities
677 1,304 Net cash provided by
operating activities 4,074 9,566
Cash flows from investing activities: Increase in restricted cash
(2 ) - Capital expenditures, net (480 ) (816 )
Net cash used in investing activities (482 ) (816 )
Cash flows from financing activities: Stock option and
employee stock purchase plan proceeds 397 443 Payment of employee
withholding taxes from equity transactions (106 ) (612 ) Common
stock cash dividends (1,921 ) (2,453 ) Excess tax benefits from
employee stock plans 5 324 Purchase of treasury stock (280 )
(1,963 ) Net cash used in financing activities
(1,905 ) (4,261 ) Effect of exchange rate changes on
cash 276 (119 ) Net increase in cash
and cash equivalents 1,963 4,370 Cash and cash equivalents
at beginning of period 46,112 55,834
Cash and cash equivalents at end of period $ 48,075 $
60,204 (1) The Condensed Consolidated
Statements of Cash Flows is prepared on a combined basis and the
reported results include both continuing and discontinued
operations for the three month period ended June 30, 2009.
DIAMOND MANAGEMENT & TECHNOLOGY CONSULTANTS, INC.
UNAUDITED RECONCILIATIONS OF GAAP TO
NON-GAAP FINANCIAL MEASURES (In thousands)
RECONCILIATION OF INCOME FROM CONTINUING OPERATIONS AFTER INCOME
TAXES TO EBITDA : For the Three Months For the Three Months
Ended March 31, Ended June 30, 2010 2009 2010 (Unaudited)
(Unaudited) (Unaudited) Income from continuing operations
after income taxes $ 7,221 $ 847 $ 3,306 Depreciation and
amortization expense 410 489 431 Interest income, net (5 ) (10 )
(27 ) Income tax expense (benefit) (1,426 ) 1,055
3,037 EBITDA (1) $ 6,200 $ 2,381
$ 6,747 (1) EBITDA, defined as income from continuing
operations before interest, taxes, depreciation and amortization,
is not a measure of financial performance under U.S. generally
accepted accounting principles (GAAP). Management believes EBITDA
is a useful indicator of the Company's financial and operating
performance and its ability to generate cash flows from operations
that are available for share repurchases and capital expenditures.
Investors should recognize that EBITDA might not be comparable to
similarly-titled measures of other companies. This measure should
be considered in addition to, and not as a substitute for or
superior to, any measure of performance prepared in accordance with
GAAP. RECONCILIATION OF CASH PROVIDED BY OPERATING
ACTIVITIES TO FREE CASH FLOW (2): For the Three Months For
the Three Months Ended March 31, Ended June 30, 2010 2009 2010
(Unaudited) (Unaudited) (Unaudited) Net cash provided by
operating activities $ 8,090 $ 4,074 $ 9,566 Capital expenditures
(304 ) (480 ) (816 ) Free cash flow $ 7,786
$ 3,594 $ 8,750 (2) Free cash flow,
defined as net cash provided by operating activities less capital
expenditures, is a non-GAAP term. Management believes that by
providing more visibility on free cash flow and reconciling to net
cash provided by operating activities, the Company provides a
consistent metric from which the quality of its business may be
monitored. This measure should be considered in addition to, and
not as a substitute for or superior to, any measure of performance
prepared in accordance with GAAP.
Diamond Management & Technology Consultants, Inc. (MM) (NASDAQ:DTPI)
Gráfico Histórico do Ativo
De Ago 2024 até Set 2024
Diamond Management & Technology Consultants, Inc. (MM) (NASDAQ:DTPI)
Gráfico Histórico do Ativo
De Set 2023 até Set 2024