Thomas Group Announces First Quarter Results
13 May 1999
Thomas Group Announces First Quarter Results
DALLAS--May 13, 1999--Thomas Group Inc. today announced results for the quarter ended March 31, 1999. Diluted earnings per share from continuing operations for the first quarter of 1999 were $0.15 compared to $0.14 for the same period last year. The first quarter 1998 amount excludes $0.8 million non-recurring pretax personnel reduction costs (approximately $0.07 per share after tax effect on earnings). Revenues for the first quarter 1999 were $14.7 million, down 6% from $15.6 million in first quarter 1998.Fixed fee revenues in the first quarter of 1999 were $13.3 million or 90% of total revenues, compared with $12.2 million or 78% of total revenues in the first quarter of 1998. Business Under Commitment was $44 million at March 31, 1999, compared with $50 million at December 31, 1998 and $41 million at March 31, 1998.
President and Chief Executive Officer Tom Williams, commenting on first quarter 1999 results said, "I am pleased with the first quarter results at $0.15 per share but revenue growth is being impacted by our strategy of moving to a higher percentage of fixed fee programs. We are pleased to see that fixed fee revenues were up $1.1 million from first quarter 1998 even though this increase was offset by a $2.0 million decrease in incentive fees. Our strategy is to reduce profit volatility by reducing incentive fees as a percent of total revenue. The number and quality of the proposals currently in process is encouraging and I expect that several of them will close shortly."
Lee Grubb, Chief Financial Officer and President of the Automotive Business Unit said, "We continue to strengthen our balance sheet. Cash is up $3.0 million from December 31, 1998 to $9.4 million. During March and April we have used approximately $1 million of our cash to repurchase 108,200 shares of Thomas Group stock under our recently announced buyback program. We continue to see our buyback of stock as a good investment for our shareholders and will continue to review our plans for future purchases."
Thomas Group, Inc. is an international, publicly traded professional services firm . Thomas Group focuses on improving operations, competitiveness, and financial performance of major corporate clients through process improvement. Thomas Group's Results Teams work on-site with client companies to analyze operations, and to develop and implement sustainable operational excellence. Thomas Group, known as The Results Company(SM), has offices in Dallas, Detroit, Frankfurt, and Singapore. For additional information please visit the company on the World Wide Web at www.thomasgroup.com, or call toll free 800/826-2057.
Safe Harbor" Statement Under The Private Securities Litigation Reform Act:
Statements in this release that are not strictly historical are "forward looking" statements which should be considered as subject to the many uncertainties that exist in the company's operations and business environment. These uncertainties, which include economic and business conditions that may impact clients and the company's performance-oriented fees, timing of contracts and revenue recognition, competitive and cost factors, and the like, are set forth in the Thomas Group, Inc. Form 10-K for the 1998 Fiscal year filed with the Securities and Exchange Commission.
THOMAS GROUP, INC.
Selected Consolidated Financial Data (Unaudited)
(Amounts stated in thousands, except per share amounts)
Three Months Ended
March 31,
=========== =========
1999 1998
----------- ---------
Revenues $14,710 $15,646
Cost of Sales 8,859 9,725
-------- --------
Gross Margin 5,851 5,921
Selling, General and Administrative
(excluding non-recurring charges in 1998) 4,577 4,514
-------- --------
Operating Income (excluding non-recurring
charges in 1998) 1,274 1,407
Interest Income, Net 37 29
-------- --------
Income from Continuing Operations (excluding
non-recurring charges in 1998) Before Income
Taxes 1,311 1,436
Income Taxes 524 574
-------- --------
Income from Continuing Operations (excluding
non-recurring charges in 1998) 787 862
======== ========
Other Items
(Loss) from non-recurring items, net of
income tax -- (457)
(Loss) on disposal of discontinued operations,
net of income tax -- (743)
-------- --------
Net Income (Loss) $787 $(338)
======== ========
Earnings (Loss) per share:
Basic:
Income from Continuing Operations
(excluding non-recurring charges in 1998) $0.16 $0.14
Income from Continuing Operations 0.16 0.07
Discontinued Operations -- (0.12)
-------- --------
Net Income (Loss) $0.16 $(0.05)
======== ========
Diluted:
Income from Continuing Operations (excluding
non-recurring charges in 1998) $0.15 $0.14
Income from Continuing Operations 0.15 0.07
Discontinued Operations: -- (0.12)
-------- --------
Net Income (Loss) $0.15 $(0.05)
======== ========
Weighted Average Shares:
Basic 5,004 6,152
Diluted 5,084 6,257
THOMAS GROUP, INC.
Selected Consolidated Financial Data (Unaudited)
(Amounts stated in thousands, except per share amounts)
Selected Segment Sales Data
Three Months Ended March 31,
============ ============
1999 1998
------------ ------------
United States $10,431 $10,655
Europe 2,867 4,113
Asia/Pacific 1,412 878
------- -------
Total Revenue $14,710 $15,546
======= =======
Selected Balance Sheet Data
March 31, December 31,
1999 1998
----------- ----------
Cash $9,423 $6,376
Trade Accounts Receivable 9,558 11,979
Total Current Assets 23,441 21,091
Total Assets 30,891 31,631
Total Current Liabilities 6,058 7,491
Total Liabilities 9,051 10,419
Total Stockholders' Equity $21,840 $21,212