As far as I can tell, didn't listen to conference call, going only off the press release.
Rory
Thursday March 11, 9:55 am Eastern Time
Company Press Release
SOURCE: Hagler Bailly, Inc.
Hagler Bailly Announces Record
Revenues and Net Income for 1998
Fourth Quarter and Full Year
Highlights -- Earnings per share for year ended December 31, 1998 were $0.93
and $0.24 for the quarter ending December 31, 1998 on a pro-forma basis as
compared to $0.47 for the year ended December 31, 1997 and $0.06 for the
quarter ended December 31, 1997 -- Net income increased 319.5% to $4.1
million over the quarter ending December 31, 1997, and increased 134.0% to
$15.7 million over the year ending December 31, 1997 on a pro-forma basis --
Revenues increased 15.7 % to $45.4 million over the quarter ending December
31, 1997 and increased 10.5 % to $177.5 million over the year ending
December 31, 1997 -- Cautious outlook for current quarter
ARLINGTON, Va., March 11 /PRNewswire/ -- Hagler Bailly, Inc. (Nasdaq: HBIX - news), a
worldwide provider of professional services to corporate and government clients, today reported
record revenues and net income for the fourth quarter and full year 1998, posting earnings per share
for the quarter of $0.24 and $0.93 for the year on a pro-forma basis.
The Company reported top-line revenues of $177.5 million for the year ended December 31, 1998
and $45.4 million for the quarter ended December 31, 1998 an increase of 10.5% and 15.6%
respectively over the comparable periods for 1997. Pro-forma net income was $15.7 million for the
year ended December 31, 1998 and $4.1 million for the quarter ended December 31, 1998 an
increase of 134.0% and 319.5% over the comparable periods for 1997.
Henri-Claude Bailly, president and chief executive officer of Hagler Bailly, in announcing the results,
stated, ''1998 was clearly a significant year for the company. We are bigger, having completed three
domestic and two international acquisitions, more than doubling our consulting staff and expanding
our global presence. We have added senior level expertise to both the management and consulting
operations of the firm, strengthened our consulting services, most notably with the formation of two
joint ventures, Cap Gemini Hagler Bailly and Hagler Bailly Risk Advisors, and shifted our mix of
business in favor of commercial consulting. And we are financially stronger, having completed our
first full fiscal year as a public company with a strong balance sheet including $16.2 million in cash.''
The Company reported that pro-forma income from operations for the quarter ended December 31,
1998 increased 13.5% to $7.2 million over the quarter ended December 31, 1997 and increased
99.0% to $26.2 million over the year ended December 31, 1997. Gross profit as a percentage of
revenues was 30.8% for the fourth quarter of 1998 as compared to 28.9% in the fourth quarter of
1997.
With respect to the outlook for the first quarter of 1999, Mr. Bailly said, ''Based on the preliminary
data currently available, management expects that the revenues for the first quarter of 1999 will be
essentially flat when compared with those of the first quarter of 1998. Our best estimate at this time is
that earnings for the quarter will fall somewhere in the range of 5 to 10 cents per share. We are
disappointed in the pace of business for the first two months of the quarter but expect steady
improvement over the balance of the year.''
Founded in 1980 and publicly traded since July 1997, Hagler Bailly is headquartered in Arlington,
Va., and has a network of offices in 23 principal locations in 12 countries.
For more information about Hagler Bailly, visit our Web site at: www.haglerbailly.com
Statements included in this press release which are not historical in nature, are intended to be, and are
hereby identified as, ''forward-looking statements'' for the purposes of the safe harbor provided by
Section 21E of the Securities and Exchange Act of 1934, as amended by Public Law 104-67.
Forward- looking statements may be identified by words including ''anticipate,'' ''believe,''
''intends,'' ''estimates,'' ''expect'' and similar expressions. The Company cautions readers that
forward-looking statements, including without limitation, those relating to the Company's future
business prospects, revenues, working capital, liquidity, and income, are subject to certain risks and
uncertainties that could cause actual results to differ materially from those indicated in the
forward-looking statement, due to several important factors herein identified, among others, and
other risks and factors identified from time to time in the Company's filings with the SEC.
Hagler Bailly, Inc.
Consolidated Balance Sheets
(unaudited)
December 31, September 30, December 31,
1998 1998 1997
(all dollar values in thousands)
Assets
Cash & cash equivalents $16,165 $7,561 $5,261
Investments -- -- 6,551
Accounts receivable, net 59,092 66,806 51,857
Note receivable 382 1,000 1,000
Prepaid expenses and other 2,620 6,459 1,502
Other current assets 304 3,781 1,867
Total current assets 78,563 85,607 68,038
Property and equipment, net 6,463 6,641 5,513
Software development, net 898 1,400 2,463
Intangible assets, net 14,208 9,045 6,926
Deferred income taxes -- 24 1,270
Other assets 1,290 1,334 1,598
Total Assets $ 101,422 $ 104,051 $85,808
Liabilities and Stockholders' Equity
Bank line of credit $-- $4,700 $1,500
Accounts payable and
accrued expenses 8,476 7,837 7,969
Accrued compensation and benefits 8,713 11,918 13,467
Billings in excess of cost 2,288 2,585 3,126
Current portion of long term debt 345 250 947
Deferred compensation -- -- 3,566
Income taxes payable 2,547 4,361 1,952
Deferred income taxes 1,900 887 2,540
Total current liabilities 24,269 32,538 35,067
Long-term debt, net of
current portion 681 -- 305
Minority interest 177 -- --
Deferred income taxes 927 -- --
Other deferred 1,769 -- 1,587
Total Liabilities $27,823 $32,538 $36,959
Total Stockholders' Equity 73,599 71,513 48,849
Total Liabilities and
Stockholders' Equity $ 101,422 $ 104,051 $85,808
Hagler Bailly, Inc.
Consolidated Pro Forma Operating Results (a)(b)
(unaudited)
Three months ended
(all numerical values in
thousands except
E.P.S.) Sept. 30, Dec. 31, Dec. 31,
1998 1998 1997 (a)
% of sales % of sales % of sales
Total revenues $46,490 $45,380 $39,254
Cost of services 33,131 71.3% 31,392 69.2% 27,938 71.2%
Gross profit 13,359 28.7% 13,988 30.8% 11,316 28.8%
Selling, general
and administrative
expenses 6,905 14.9% 6,814 15.0% 8,271 21.1%
Pro forma income
from operations (b) 6,454 13.9% 7,174 15.8% 3,045 7.8%
Other income
(expense), net 258 0.6% 89 0.2% 9 0.0%
Income (loss) from
joint venture -- 0.0% (463) -1.0% -- 0.0%
Pro forma income
before income tax
expense (b) 6,712 14.4% 6,800 15.0% 3,054 7.8%
Pro forma income
tax expense (b) 2,685 5.8% 2,697 5.9% 2,076 5.3%
Pro Forma Net
Income (b) 4,027 8.7% 4,103 9.0% 978 2.5%
Pro Forma Fully
Diluted Operating
EPS (b) $0.24 $0.24 $0.06
Fully diluted shares
outstanding 16,939 17,058 15,884
Year ended
(all numerical values
in thousands except
E.P.S.) December 31, December 31,
1998 1997 (a)
% of sales % of sales
Total revenues $177,462 $160,615
Cost of services 126,204 71.1% 120,586 75.1%
Gross profit 51,258 28.9% 40,029 24.9%
Selling, general and
administrative
expenses 25,112 14.2% 26,868 16.7%
Pro forma income
from operations (b) 26,146 14.7% 13,161 8.2%
Other income
(expense), net 269 0.2% (400) -0.2%
Income (loss) from
joint venture (463) -0.3% -- 0.0%
Pro forma income
before income
tax expense (b) 25,952 14.6% 12,761 7.9%
Pro forma income
tax expense (b) 10,293 5.8% 6,070 3.8%
Pro Forma Net
Income (b) 15,659 8.8% 6,691 4.2%
Pro Forma Fully
Diluted Operating
EPS (b) $0.93 $0.47
Fully diluted shares
outstanding 16,772 14,182
(a) Restated to reflect the merger of Putnam, Hayes & Bartlett, Inc. and Subsidiaries in the
3rd quarter of 1998 which was accounted for as a pooling of interests.
(b) Pro forma results for all periods exclude the nonrecurring: (a) merger, related costs, and
other non-recurring charges of $2,493, $5,170, and $1,235, for the three months ended
September 30 and December 31, 1998, and December 31, 1997, respectively;
Fully diluted earnings per share based on net income (loss) is $0.15, $0.02, and ($0.55) per share
for the three months ended September 30 and December 31, 1998, and December 31, 1997,
respectively, and $0.40 and ($0.14) for the years ended December 31, 1998 and 1997,
respectively.
SOURCE: Hagler Bailly, Inc.
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