PRGX Global (PRGX) Misses Q4 EPS by 42c

PRGX Global (NASDAQ: PRGX) reported Q4 EPS of ($0.19), $0.42 worse than the analyst estimate of $0.23. Revenue for the quarter came in at $46.69 million versus the consensus estimate of $46.55 million.

Quarterly Highlights

• Adjusted EBITDA from continuing operations of $11.9 million, net loss from continuing operations of $4.4 million
• Adjusted EBITDA is the highest in over a decade
• Delivered on commitment to reach Adjacent Services profitability by the end of 2019
• Reiterating 2020 annual guidance for Adjusted EBITDA of between $28 million to $30 million

“Consistent with the guidance provided last quarter, we delivered significantly improved Adjusted EBITDA performance as we rationalized costs in our business and brought Adjacent Services to profitability. This quarter marks the highest quarterly Adjusted EBITDA the company has delivered in more than 10 years. While our streamlined cost structure is the nearest term evidence of PRGX’s transformation, we remain on track to begin rolling out our next generation technology platform and audit tools in the second quarter that we expect will drive future revenue growth and improved profitability,” said Ron Stewart, President and Chief Executive Officer.

“In 2020, we continue to expect Adjusted EBITDA to grow as we fully realize the benefit of the cost takeout initiatives in 2019 and continue to improve client profitability. We reiterate our expectation of delivering 2020 Adjusted EBITDA within a range of $28 to $30 million, reflecting 25-to-30 percent growth on an assumed flat revenue base, and significant improvement in free cash flow. Looking ahead to 2021 and beyond, we expect to deliver meaningful top-line growth, as the market for Source-to-Pay solutions continues to grow and PRGX further enhances its position in that market,” concluded Stewart.

Guidance

• For 2020, Adjusted EBITDA is expected to be in the range of $28 million to $30 million.

For earnings history and earnings-related data on PRGX Global (PRGX) click here.

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