PRGX Global Reports 9 Percent Increase in Revenue

PRGX Global (NASDAQ:PRGX), a global leader in Recover Audit and Spend Analytics services reported US$42.1 million in consolidated revenue for the second quarter ended June 30, 2018.

The company said that the consolidated revenue grew 9.3 percent as compared to the same period last year.

As quoted in the press release:

“We continued our strong performance in the second quarter, delivering our eighth straight quarter of year-over-year revenue and adjusted EBITDA growth.  Revenue from continuing operations in the second quarter grew over 9% and adjusted EBITDA from continuing operations grew over 17%. Also noteworthy in the second quarter was year-over-year revenue growth of over 47% in Adjacent Services. We are pleased with our second quarter results, achieving growth in every service line and in each region,” said Ron Stewart, president and chief executive officer.

“Our new business pipeline is strong and growing, providing continued momentum into the back half of 2018.  Since the beginning of the year we have added more than 20 new clients and secured more than 25 service expansions in existing clients.  Given our strong performance in the first half of the year and positive outlook for the remainder of the year, we remain on track to meet our 2018 guidance of year-over-year revenue growth in the range of 8% to 10% and adjusted EBITDA growth in the range of 17% to 22%,” concluded Stewart.

Consolidated Results from Continuing Operations for the Six Months Ended June 30, 2018

For the six months ended June 30, 2018, revenue from the Recovery Audit Services segments was $76.3 million compared to $69.5 million in the prior year, and from the Adjacent Services segment was $2.5 million compared to $2.5 million in 2017.  On a constant dollar basis adjusted for changes in foreign exchange rates, consolidated revenue from continuing operations increased by 7.2% in the six months ended June 30, 2018, compared to the same period in the prior year.  On a constant dollar basis, revenue from the Recovery Audit Services segments increased 7.6% and revenue from the Adjacent Services segment decreased 3.1% for the for the six months ended June 30, 2018 compared to the same period in 2017.

Total cost of revenue from continuing operations for the six months ended June 30, 2018 was $52.2 million, or 66.2% of revenue, compared to $48.6 million, or 67.5% of revenue, in the same period last year, an improvement of approximately 130 basis points in gross margin as a percentage of revenue.

SG&A expenses from continuing operations for the six months ended June 30, 2018 were $24.1 million, compared to $22.0 million in the prior year period.  The increase in SG&A expenses for this period was primarily attributable to planned investments in our product development organization and global go-to-market team.

Consolidated net loss from continuing operations for the six months ended June 30, 2018 was $5.2 million, or $0.23 per basic and diluted share, compared to a net loss of $2.2 million, or $0.10 per basic and diluted share, for the same period in 2017.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) from continuing operations for the six months ended June 30, 2018 was $7.4 million, or 9.4% of revenue, compared to Adjusted EBITDA of $5.6 million, or 7.8% of revenue, for the same period in the prior year.  Schedule 3 attached to this press release provides a reconciliation of net income (loss) to each of EBIT (Earnings Before Interest and Taxes), EBITDA and Adjusted EBITDA.

Click here for the press release.