PRGX Global (PRGX) Tops Q2 EPS by 4c, Revenues Beat

PRGX Global (NASDAQ: PRGX) reported Q2 EPS of $0.02, $0.04 better than the analyst estimate of ($0.02). Revenue for the quarter came in at $38 million versus the consensus estimate of $37.15 million.

Quarterly Highlights

• Revenue of $39.0 million, which was negatively impacted by approximately $0.7 million from a strengthening U.S. dollar compared to the same period last year
• Net income from continuing operations of $0.4 million compared to a loss of $4.2 million in the same period last year
• Adjusted EBITDA from continuing operations of $7.6 million, the highest second quarter Adjusted EBITDA in seven years and a 165% increase compared to the second quarter of 2019
• Increasing 2020 annual guidance for Adjusted EBITDA to a revised range of $29 million to $30 million

“We continue to deliver on our promises of fiscal discipline, improved productivity, and expanded operating leverage in 2020. We achieved another milestone in the second quarter of 2020, delivering our highest second quarter Adjusted EBITDA in seven years. More than 75 percent of our revenue comes from clients engaged in providing essential goods and services, and our clients continue to look to PRGX to help them generate working capital during this challenging pandemic period. Our employees around the world stepped up to the challenge of working remotely to deliver strong results for the quarter. I am very pleased with our improved financial performance in the second quarter and over the last several quarters, and am confident that we can continue to deliver strong results going forward,” said Ron Stewart, President and Chief Executive Officer.

“In the second quarter we continued rolling out our next generation global audit platform which is strategically important to enabling additional margin improvement and increased audit revenue. Based on strong operating results in the first half of the year and further revenue generation opportunities from our solid client base and robust audit operations productivity, we are increasing the lower end of our 2020 Adjusted EBITDA guidance and establishing a revised range of $29 million to $30 million. We also continue to expect a significant improvement in free cash flow compared to 2019,” concluded Stewart.

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

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