Information Services Group (III) Tops Q1 EPS by 4c, Revenues Beat
Information Services Group (NASDAQ: III) reported Q1 EPS of $0.10, $0.04 better than the analyst estimate of $0.06. Revenue for the quarter came in at $67 million versus the consensus estimate of $63.28 million.
- Reports first-quarter GAAP revenues of $67 million, exceeding guidance; fee revenues, excluding impact of reimbursable T&E, up 7% to new record
- Reports record first-quarter net income of $3 million, record GAAP EPS of $0.07 and adjusted EPS of $0.10
- Reports record first-quarter adjusted EBITDA of $9 million, up 2.4x versus prior year, exceeding guidance
- Delivers record first-quarter cash flow from operating activities of $12 million
- Achieves quarter-end cash balance of $49 million, up 2.8x from prior year; reduces debt balance 11 percent from prior year, to $78 million
- Signs largest-ever ISG Automation engagement for more than $10 million
- Sets second-quarter 2021 guidance: revenues and EBITDA expected to grow double-digits over prior year with revenues between $65 million and $67 million and adjusted EBITDA of between $8 million and $9 million
“ISG is off to its best start ever,” said Michael P. Connors, chairman and CEO. “With rising demand for all things digital and reaping the benefits of our new operating model and disciplined operating approach, we delivered record first-quarter fee revenues and profitability, with new first-quarter highs for adjusted EBITDA, net income and GAAP earnings per share. Momentum is on our side.”
Commenting on current market conditions, Connors said ISG clients are embracing “a new wave of digital transformation” coming out of the pandemic. “COVID-19 showed every company the power of digital to connect people, attract new customers, and enable a new era of business efficiency and growth. We see enterprises in many industries beginning to increase their digital investments, gradually moving beyond initial COVID cautiousness as the crisis begins to lift in many parts of the world.”
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