CTG Continues Revenue and Earnings Growth.BUFFALO Buffalo, city, United States Buffalo, city (1990 pop. 328,123), seat of Erie co., W N.Y., on Lake Erie and the Niagara and Buffalo rivers; inc. 1832. With more than 37 mi (60 km) of waterfront, it is a major commercial and industrial port and railroad hub. , N.Y.--(BUSINESS WIRE)--July 12, 1999-- CTG CTG Cartridge CTG Center for Technology in Government (SUNY, Albany, New York) CTG Center for Technology in Government CTG Computer Task Group (IT consulting company; Buffalo, NY, USA) (Computer Task Group (NYSE NYSE See: New York Stock Exchange : TSK tsk interj. Used to express disappointment or sympathy. n. A sucking noise made by suddenly releasing the tongue from the hard palate, used to express disappointment or sympathy. )), an international information technology (IT) services company, today announced second quarter 1999 revenues of $125.5 million, showing continued growth in revenues with an increase of 6.6 percent over the second quarter of 1998. Net income for the second quarter of 1999 was $6.3 million and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) were $0.38, respective increases of 8.3 percent and 11.8 percent over the second quarter of 1998. "We are continuing to build our capabilities serving clients through two sales and delivery channels," said Gale S. Fitzgerald, CTG's chairman and chief executive officer (CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. ). "We are investing in selling and delivering business solutions involving enterprise-wide applications, e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. , business application management, supply chain management, and business consulting with specific industry expertise. The broad and deep capabilities of CTG HealthCare Solutions allow us to specifically address a variety of needs in the health care arena and assume a leadership position. Our Strategic Staffing sales and delivery channel provides a world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. , high-volume, efficient process to deliver information technology talent to meet very large client needs in the marketplace. "Strategically, we limited our exposure to Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 work to below 15 percent of our total business. This has allowed us to continue to grow our revenues and, more importantly, continue to improve our profitability and earnings," Ms. Fitzgerald added. CTG signed a number of new managed services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality contracts in the second quarter, including agreements with two large steel industry companies, a national textile textile Any filament, fibre, or yarn that can be made into fabric or cloth, and the resulting material itself. The word originally referred only to woven fabrics but now includes knitted, bonded, felted, and tufted fabrics as well. manufacturer, a large software developer, and a metropolitan health care provider. CTG (Computer Task Group (NYSE: TSK)) is a $500 million information technology (IT) services company that provides IT solutions to Fortune 1000 and other companies through strategic partnerships. Backed by more than 30 years' experience, CTG manages IT services for some of the world's leading companies so they can focus on their core businesses and use IT, which has become vital to competitiveness, to excel in their markets. CTG's resources include its 55 offices in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , 6,000 IT professionals, a suite of proprietary
service methodologies, strong project management expertise, and a
proactive recruiting approach, CTG-SmartSource.
Today's news release, along with CTG news releases for the past year, is available by fax at no charge by calling Corporate News on the Net at (800) 742-7505. Additional information about CTG is available on the World Wide Web at these addresses: http://www.ctg.com and http://www.businesswire.com/cnn/tsk.htm. This document contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. concerning the Company's current expectations as to future growth. These statements are based upon a review of industry reports, current business conditions in the areas where the Company does business, the availability of qualified professional staff and other factors which involve risk and uncertainty. As such, actual results may differ materially in response to a change in such factors. Such forward-looking statements should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the Company's disclosures set forth in the Company's 1998 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and the Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial section of the Company's 1998 annual report, which are incorporated by reference.
COMPUTER TASK GROUP, INCORPORATED
Consolidated Statements of Income
(amounts in thousands except per share data)
For the Quarter Ended
June 25, June 26,
1999 1998 Change
-------------------------------------
Total Revenue $125,464 $117,646 6.6%
Total Operating Income 11,740 9,815 19.6%
Percentage of Revenue 9.4% 8.3%
Net Other Income (644) 73
--------------------------
Income Before Taxes 11,096 9,888 12.2%
Percentage of Revenue 8.8% 8.4%
Net Income $ 6,317 $5,834 8.3%
==========================
Percentage of Revenue 5.0% 5.0%
Net Income Per Share:
Basic $0.38 $0.36 5.6%
===== =====
Diluted $0.38 $0.34 11.8%
===== =====
Weighted Average Shares Outstanding:
Basic 16,517 16,196
Diluted 16,796 16,939
COMPUTER TASK GROUP, INCORPORATED
Consolidated Statements of Income
(amounts in thousands except per share data)
For the Two Quarters Ended
June 25, June 26,
1999 1998 Change
--------------------------------------
Total Revenue $242,082 $227,329 6.5%
Total Operating Income(a) 19,756 18,204 8.5%
Percentage of Revenue 8.2% 8.0%
Net Other Income (464) 289
--------------------------
Income Before Taxes(a) 19,292 18,493 4.3%
Percentage of Revenue 8.0% 8.1%
Net Income(a) $ 11,016 $ 10,911 1.0%
==========================
Percentage of Revenue 4.6% 4.8%
Net Income Per Share:(a)
Basic $0.67 $0.68 (1.5)%
===== =====
Diluted $0.66 $0.64 3.1%
===== =====
Weighted Average Shares Outstanding:
Basic 16,472 16,151
Diluted 16,813 16,968
(a) The two quarters ended June 25, 1999 include the expense of a
non-recurring arbitration award which lowered Operating Income
and Income Before Taxes by approximately $2.5 million, and Net
Income and Net Income Per Share by approximately $1.5 million and
$.09, respectively.
COMPUTER TASK GROUP, INCORPORATED
Consolidated Balance Sheets
(amounts in thousands)
June 25, June 26,
1999 1998
--------------------------
Current Assets:
Cash and Cash Equivalents $4,810 $18,325
Accounts Receivable, Net 93,938 81,584
Other Current Assets 4,697 4,325
--------------------------
Total Current Assets 103,445 104,234
Property and Equipment, Net 14,225 13,216
Other Assets 89,885 6,799
--------------------------
Total Assets
$207,555 $124,249
==========================
June 25, June 26,
1999 1998
--------------------------
Current Liabilities:
Accounts Payable $9,280 $12,922
Accrued Compensation 26,380 21,644
Short-term Borrowings 41,845 --
Income Taxes Payable 9,443 5,394
Other Current Liabilities 14,153 6,000
--------------------------
Total Current Liabilities 101,101 45,960
Other Liabilities 11,472 10,742
Shareholders' Equity 94,982 67,547
--------------------------
Total Liabilities and
Shareholders' Equity $207,555 $124,249
==========================
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