Convergys Corporation Reports First Quarter Financial Results.To download high-resolution, print-ready JPEG JPEG in full Joint Photographic Experts Group Standard computer file format for storing graphic images in a compressed form for general use. JPEG images are compressed using a mathematical algorithm. images, click on the thumbnail A miniature representation of a page or image that is used to identify a file by its contents. Clicking the thumbnail opens the file. Thumbnails are an option in file managers, such as Windows Explorer, and they are found in photo editing and graphics program to quickly browse multiple image above. WARNING: these images are very large (800K+) Click here for caption Business Editors NOTE: Multimedia assets available CINCINNATI--(BUSINESS WIRE)--April 22, 2003 Convergys Corporation (NYSE NYSE See: New York Stock Exchange :CVG CVG Convergys Corp CVG Corporación Venezolana de Guayana CVG Clear Vertical Grain (woodworking) CVG Carrier Group CVG Corporacion Venezolana de Guyana CVG Comprehensive Video Group (South Hackensack, NJ, USA) ) IN THE FIRST QUARTER: -- Revenues decreased 5 percent to $560.4 million versus one year ago. -- Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. decreased to $68.5 million from $98.5 million. -- Including pre-tax loss of $9.9 million from the cellular partnership investment resulting from the settlement of a lawsuit, GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income decreased to $34.9 million or $0.22 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share versus $59.6 million or $0.35 in 2002. Convergys Corporation (NYSE:CVG), the global leader in integrated billing, employee care, and customer care services, announced today its financial results for the first quarter of 2003. Total revenues were $560.4 million compared to $587.5 million reported in the first quarter of 2002. Compared to the fourth quarter of 2002, revenues declined one percent. Operating income decreased 30 percent to $68.5 million from $98.5 million as operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: dropped to 12.2 percent from 16.8 percent in the prior year. Convergys' cellular partnership investment generated a pre-tax loss of $9.9 million versus pre-tax earnings of $0.9 million in the first quarter of 2002. As announced in an earlier statement, the general partner of the cellular partnership recently informed Convergys that the partnership had settled a pending lawsuit for $22 million. As a result of its 45 percent interest in the partnership, Convergys' share of the settlement is $9.9 million, which it has recorded as a loss from its investment in the partnership. Interest expense decreased to $1.5 million from $3.6 million in the prior year. GAAP net income was $34.9 million or $0.22 per diluted share versus $59.6 million in the first quarter of 2002. Excluding the loss resulting from the cellular partnership settlement, Convergys' pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income was $41.3, representing a 31 percent decrease from 2002. As a result, pro forma diluted 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. decreased 26 percent to $0.26 from $0.35 reflecting, in part, Convergys' share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. . Average diluted shares outstanding decreased 9 percent to 156.2 million. Convergys repurchased 4.9 million shares during the quarter. "The global business environment remains challenging for our Information Management Group. Wireless subscriber growth has slowed significantly, carriers are delaying the large-scale rollout of new services, and burdened by heavy debt loads, telecommunication companies are managing their businesses with tight controls over expenditures. Although we are aggressively pursuing new business, the current North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market opportunity for our Information Management Group is difficult," said Jim Orr, Chairman, President, and 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. of Convergys. "Strengthening revenue in our Customer Management Group is partially helping to offset these challenging conditions. Additionally, strong cash flow and a solid balance sheet are allowing us to expand our market leading product portfolio, invest in research and development, and return value back to our shareholders through share repurchases." First Quarter 2003 Highlights Convergys announced three important domestic contracts during the quarter including a major business process outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in contract with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Postal Service postal service, arrangements made by a government for the transmission of letters, packages, and periodicals, and for related services. Early courier systems for government use were organized in the Persian Empire under Cyrus, in the Roman Empire, and in medieval (USPS (1) (Uninterruptible Switching Power Supply) A power supply for a computer that contains its own battery and uninterruptible power supply (UPS) circuitry. See power supply and UPS. ) to support its Contact Center Network Solution project. This initial four-year contract (with a potential for an additional six one-year renewal options based on Convergys' performance and USPS business needs) will lower costs and enhance the Postal Service's customer experience. Two Employee Care contract announcements included a multi-year, outsourced, employee care contract with RR Donnelley
DNY Downstate New York ). Convergys will provide a wide array of human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. administration services for the company's 25,000 U.S.-based employees through a centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. multi-channel HR service center. Convergys also announced a five-year contract with Office Depot Office Depot (NYSE: ODP) is one of the world's leading suppliers of office products and services. The Company's selection of brand name office supplies includes business machines, computers, computer software and office furniture, while its business services encompass copying, (NYSE:ODP ODP - Open Distributed Processing ) to provide outsourced health and welfare benefits and leave of absence administration services. Convergys will support approximately 37,000 U.S. employees of Office Depot with employee care specialists, Web-based self-service capabilities, and other technologies. Continuing to penetrate international markets with additional contracts, Convergys announced it had signed an expanded billing contract with Brasil Telecom Brasil Telecom S.A. (BrT) is a major Brazilian telecommunications company headquartered in the Brazilian capital of Brasilia. The company is one of three land line telephone companies in Brazil that emerged from the break-up of Telebrás. SA (NYSE:BTM BTM See: Book to market. ) to support Brasil Telecom's future "Mobile Personal Service" wireless subscribers. Convergys will also support the operator's 2 million corporate customers of fixed telephony (i.e., wireline) services as part of the expanded multi-year agreement. In Europe, Danish ISP (1) See in-system programmable. (2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines. Cybercity deployed Convergys' Geneva Geneva, canton and city, Switzerland Geneva (jənē`və), Fr. Genève, canton (1990 pop. 373,019), 109 sq mi (282 sq km), SW Switzerland, surrounding the southwest tip of the Lake of Geneva. software to support the company's home market DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary program and the rollout of new broadband services See broadband and broadband service provider. . Convergys also signed a contract with Germany's EWE Ewe (ā`vā,–wā), African people, numbering over 3 million, who live in SE Ghana, S Togo, and S Benin. When German Togoland was partitioned after World War I, the Ewe in that colony were divided between France and Britain. TEL TEL Telephone TEL Telegram TEL Telugu (langauge) TEL Terrorist Exclusion List TEL Technology-Enhanced Learning TEL Transporter-Erector-Launcher TEL Tetra-Ethyl Lead TEL Team Deutsche Telekom to support the regional telephone company with Convergys' IP Suite. In addition, Convergys announced a contract with French mobile operator Bouygues Telecom, one of the leading French mobile operators, to provide a new billing solution that incorporates Convergys' award-winning Geneva components. Convergys is upgrading Telewest Broadband's ICOMS ICOMS Integrated Communications Operations Management system ICOMS Improved Conventional Mine System billing and customer care system that currently provides multi-channel television, telephone, and Internet services to 1.76 million U.K. households and voice and data telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. to more than 74,000 businesses. Also in Great Britain Great Britain, officially United Kingdom of Great Britain and Northern Ireland, constitutional monarchy (2005 est. pop. 60,441,000), 94,226 sq mi (244,044 sq km), on the British Isles, off W Europe. The country is often referred to simply as Britain. , BT Retail has selected Convergys as prime contractor to implement a Geneva-based billing solution for FeatureNet, BT's corporate virtual private network (VPN (Virtual Private Network) A private network that is configured within a public network (a carrier's network or the Internet) in order to take advantage of the economies of scale and management facilities of large networks. ) operation. Convergys made several product announcements during the quarter including updated versions of its Atlys and Geneva billing and customer care solutions, as well as its Settlement Suite. Convergys announced its new Prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. Gateway for Atlys(r) and
Geneva(tm) clients. The integrated billing component acts as an
interface between the Atlys or Geneva real-time rating engine and the
intelligent network (IN) platform providing operators with a unified
method of supporting all pre-paid and post-paid customers across all
types of services.
In addition, Convergys announced the newest update to its Credit Card Acquisition Program that enables credit card issuers to increase their conversion rates while lowering acquisition costs and gaining more knowledge of their customers. Convergys also entered into a global marketing relationship with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) (NYSE:IBM) with the goals of delivering highly flexible and scalable billing solutions to communications providers worldwide, pursuing sales opportunities jointly, expanding product offerings, and sharing technical expertise. April 2003 Highlights to Date Convergys announced that it has deployed the latest version of its WIZARD(r) software for Israeli multichannel Using two or more paths for transmission or processing. It can refer to a variety of architectures including (1) multiple I/O channels between the CPU and peripheral devices, (2) multiple wires in a cable, (3) multiple "logical" channels within a single wire or fiber or (4) multiple , satellite operator, YES. Convergys also announced the availability of Mediation mediation, in law, type of intervention in which the disputing parties accept the offer of a third party to recommend a solution for their controversy. Mediation has long been a part of international law, frequently involving the use of an international commission, Manager Release 3.1, which features multi-byte support for Chinese, Japanese, and Korean languages Korean language Official language of North Korea and South Korea, spoken by more than 75 million people, including substantial communities of ethnic Koreans living elsewhere. . For the third consecutive year, Convergys was rated one of "America's Most Admired" companies in the diversified diversified (di·verˑ·s outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. industry according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Fortune Magazine. Convergys announced its second integrated contact center in India in Bangalore. Orr continued, "Despite the current business environment, I continue to be confident in Convergys' long-term growth prospects and opportunity to create shareholder value. We are focused on our well-defined strategy of delivering value to our clients. I continue to believe that current economic conditions will lead companies to search for the most cost-effective method of delivering quality service to their customers and that search will accelerate the movement toward outsourcing. Convergys is well positioned to take advantage of this trend in both our customer management and employee care businesses. In addition, when the economy and the telecommunications market recover, our information management business will be ready with the most advanced technology in billing and customer care solutions designed to meet the specific needs of our clients." Operating Performance by Segment Information Management Group (IMG IMG International medical graduate, see there ) Excluding intercompany sales, first quarter 2003 IMG revenues decreased 16 percent to $196.7 million, from $233.3 million in the same period last year. Compared to the fourth quarter of 2002, IMG revenues decreased by only two percent. Data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a revenues decreased 11 percent to $118.9 million from $133.9 million, representing a 3 percent year-over-year decrease in wireless subscribers processed and lower wireless average per subscriber processing rates, partially offset by an increase in cable data processing revenues. The decrease in wireless subscribers resulted from conversions off Convergys systems during the third quarter of 2002, partially offset by slow subscriber growth among Convergys' other wireless clients. Professional and consulting revenues decreased 50 percent to $26.8 million from $53.1 million reflecting a reduction in system enhancement requests and implementations of new systems from Convergys' wireless and cable clients as communications companies Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. continued their constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. on IT spending. On a positive note, license and other revenues increased slightly to $13.6 million from $12.8 million reflecting the expanded relationship with one of Convergys' largest cable clients. Also on the plus side, international revenues increased 12 percent to $37.4 reflecting combined revenue growth of approximately $11 million resulting from the July, 2002, acquisition of TelesensKSCL and Convergys' expansion in the Asia Pacific and Latin American markets. First quarter operating income for IMG decreased 50 percent to $28.2 million from $56.4 million. Operating margin was 14.3 percent compared with 24.2 percent from the first quarter of last year reflecting lower revenues, higher medical and pension benefit costs, and increased selling, general, and administrative expenses resulting from Convergys' international expansion. This was partially offset by savings realized through the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). Convergys began in the fourth quarter of 2002. Customer Management Group CMG CMG Coastal & Marine Geology (USGS) CMG Chipotle Mexican Grill, Inc. (stock symbol) CMG Companion (of the Order Of) St Michael and St George CMG Computer Measurement Group revenues were $363.7 million, a 3 percent increase compared to $354.2 million in the first quarter of 2002, primarily reflecting increased levels of business with many of Convergys' top 20 clients including several clients in the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. sector. CMG revenues were essentially flat versus the fourth quarter of 2002, reflecting a normal seasonal progression. CMG's operating income declined 2 percent to $43.0 million compared to $44.0 million in the prior year. CMG reported an 11.8 percent operating margin in the first quarter of 2003, down from the 12.4 percent reported in the first quarter of 2002. The decline reflects increases in wage, medical, and pension benefit costs, and increased investment in the Employee Care business, partially offset by the increase in revenues. Business Outlook The following forward looking-statements reflect Convergys Corporation's expectations as of April 22, 2003. Given the various risk factors discussed below, actual results may differ materially. The company intends to continue its practice of not updating 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. until its next quarterly results announcement, other than in publicly available statements. 2003 Financial Guidance For the full year of 2003, IMG revenue could decline by 7 to 15 percent from 2002 levels, and operating margin could be from 15 to 19 percent. IMG second quarter revenue could be flat to up slightly from first quarter levels due primarily to a possible increase in international revenue, which could be partially offset by a further reduction in professional and consulting revenue. The operating margin for IMG in the second quarter could improve from first quarter levels, as the benefits of the restructuring initiative announced last December begin to have a greater impact. For the full year of 2003, CMG revenue could increase 6 to 11 percent from the 2002 level, and operating margin could be from 11 to 13 percent. CMG second quarter revenue could be up slightly from the first quarter level as revenue from the United States Postal Service begins to increase, and the first parts of the initial implementation phase with the State of Florida are completed. Operating margin could experience slight pressure from the first quarter level as a result of continued investment in our Employee Care business. Given the dynamics in the second quarter as described above, we expect second quarter EPS to be $0.26 to $0.29. Including the settlement outlined for the cellular partnership, for the full year of 2003 we expect EPS to be $1.01 to $1.31. ABOUT CONVERGYS Convergys Corporation (NYSE:CVG), a member of the S&P 500 and the Forbes' Platinum 400, is the global leader in integrated billing, employee care, and customer care services provided through outsourcing or licensing. We serve top companies in telecommunications, Internet, cable and broadband services, technology, financial services, and other industries in more than 40 countries. We also provide integrated, outsourced, human resource services to leading companies across a broad range of industries. We bring together world-class resources, software, and expertise to help create valuable relationships between our clients and their customers and their employees. This commitment is validated by the more than 1.5 million individual bills our software produces each day to support more than 120 million subscribers, and by the more than 1.7 million separate customer and employee contacts we manage each day, both live and via electronic interaction. Convergys(r) employs more than 44,000 people in 45 customer contact centers and in our data centers and other offices in the United States, Canada, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , Europe, the Middle East, and Asia. Convergys is on the net at www.convergys.com, and has world headquarters in Cincinnati. (Geneva is a trademark and Convergys, the Convergys logo, and Atlys are registered trademarks of Convergys Corporation.) NON-GAAP MEASURES: This news release contains non-GAAP financial measures, including pro forma net income and pro forma 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 , which are not prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the comparable GAAP measures is included in the attached financial tables. CONFERENCE CALL NOTE: Convergys will host a one-hour conference call on Wednesday, April 23, at 10:00 AM, EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT , to discuss the company's first quarter results. It will feature Jim Orr, Chairman, President, & CEO, and Steve Rolls, CFO See Chief Financial Officer. . This call will be carried live (with scheduled repeats) on the Internet. A link to the conference call is available at www.convergys.com. In addition to the non-GAAP financial measures contained in this news release, during this conference call Convergys will disclose free cash flow, which is a non-GAAP financial measure defined as cash flows from operations less the change in the balance of the accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. and capital expenditures. A reconciliation of free cash flow is available at www.convergys.com in the section "Invest in Convergys." "SAFE HARBOR Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " NOTE: Information included in this news release may contain forward-looking statements that involve potential risks for Convergys Corporation. The future results of Convergys could differ materially from those discussed herein. Factors that could cause or contribute to such differences include, but are not limited to, the loss of a significant client or significant business from a client, difficulties in completing a contract or implementing its provisions, or completing or implementing an acquisition, potential terrorist activities and the United States' response thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. , and competitive and other factors disclosed in the 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. for the year ended December 31, 2002, filed with the SEC by Convergys Corporation. The company has no current intention of updating any forward-looking statements that may be included herein.
CONVERGYS CORPORATION
Revenues, Net Income and Earnings Per Common Share
In Millions Except Per Share Amounts
(Unaudited)
First Quarter
Change
2003 2002 Amount %
Revenues:
- Information Mgmt. Grp. $ 197.8 $ 236.2 $(38.4) (16)
- Customer Mgmt. Group 363.7 354.2 9.5 3
- Eliminations (1.1) (2.9) 1.8 (62)
--------- --------- ------- ---
--Total $ 560.4 $ 587.5 $(27.1) (5)
Operating Income:
- Information Mgmt. Grp. $ 28.2 $ 56.4 $(28.2) (50)
- Customer Mgmt. Group 43.0 44.0 (1.0) (2)
- Corporate & Other (2.7) (1.9) (0.8) 42
--------- --------- ------- ---
--Total $ 68.5 $ 98.5 $(30.0) (30)
Net Income $ 34.9 $ 59.6 $(24.7) (41)
Earnings Per Common Share
- Basic $0.23 $0.35 $(0.12) (34)
- Diluted $0.22 $0.35 $(0.13) (36)
Weighted Average Common Shares Outstanding
- Basic 153.9 168.1 (14.2) (8)
- Diluted 156.2 172.5 (16.3) (9)
The above amounts reflect the Company's results of operations, as
reported under U.S. Generally Accepted Accounting Principles (U.S.
GAAP), that will be presented in the Convergys 10-Q for the three
months ended March 31, 2003.
Convergys Corporation
Consolidated Statements of Income
In Millions Except Per Share Amounts
(Unaudited)
For the Three Months
Ended Mar. 31,
%
2003 2002 Chg.
Revenues:
Information Mgmt. Grp.
Data Processing $118.9 $133.9 (11)
Prof. & Consulting 26.8 53.1 (50)
License & Other 13.6 12.8 6
International 37.4 33.5 12
------ ------ ----
External Revenues 196.7 233.3 (16)
Interco. Svcs. for CMG 1.1 2.9 (62)
------ ------ ----
Total IMG Revenues 197.8 236.2 (16)
Customer Management Grp.
Communications 229.9 231.5 (1)
Technology 54.1 54.0 -
Financial Services 31.0 19.9 56
Other 48.7 48.8 -
------ ------ ----
Total CMG Revenues 363.7 354.2 3
Eliminations & Other (1.1) (2.9) (62)
------- ------- ----
Total Revenues 560.4 587.5 (5)
Costs & Expenses:
Cost of Providing
Services & Products 323.6 326.0 (1)
Selling, General & Admin. 113.4 103.1 10
Research & Development 23.2 26.2 (11)
Depreciation 28.0 30.2 (7)
Amortization 3.7 3.5 6
------ ------ ----
Total Costs & Expenses 491.9 489.0 1
Operating Income 68.5 98.5 (30)
Equity in Earnings of
Cellular Partnership (9.9) 0.9 -
Other Income (Expense), Net (1.7) (1.5) 13
Interest Expense (1.5) (3.6) (58)
------ ------ ----
Income Before Inc. Taxes 55.4 94.3 (41)
Income Taxes 20.5 34.7 (41)
------ ------ ----
Net Income $ 34.9 $ 59.6 (41)
====== ====== ====
Earnings Per Common Share
-Basic $ 0.23 $ 0.35 (34)
-Diluted $ 0.22 $ 0.35 (36)
Weighted Average Common Shares Outstanding (millions)
-Basic 153.9 168.1
-Diluted 156.2 172.5
Other Data
Operating Margin 12.2% 16.8%
Market Price Per Share
High $ 16.50 $ 37.98
Low $ 11.30 $ 29.10
Close $ 13.20 $ 29.57
The above amounts reflect the Company's results of operations, as
reported under U.S. Generally Accepted Accounting Principles (U.S.
GAAP), that will be presented in the Convergys 10-Q for the three
months ended March 31, 2003.
Convergys Corporation
Consolidated Balance Sheets
In Millions
(Unaudited)
Mar. 31, Dec. 31,
2003 2002
Assets
Cash and Cash Equivalents $ 28.3 $ 12.2
Receivables - Net 302.9 315.2
Other Current Assets 105.8 90.8
Property & Equipment - Net 285.9 298.0
Other Assets 925.8 903.3
--------- ---------
Total Assets $ 1,648.7 $ 1,619.5
Liabilities and Shareholders' Equity
Debt Maturing in One Year $ 42.0 $ 50.7
Other Current Liabilities 458.6 411.3
Other Liabilities 27.5 26.6
Long-Term Debt 4.8 4.6
Common Shareholders' Equity 1,115.8 1,126.3
--------- ---------
Total Liabilities
& Shareholders' Equity $ 1,648.7 $ 1,619.5
Convergys Corporation
Information Management Group
Operating Segment Data
In Millions
(Unaudited)
For the Three Months
Ended March 31,
%
2003 2002 Chg.
Revenues:
Data Processing $118.9 $133.9 (11)
Prof. & Consulting 26.8 53.1 (50)
License & Other 13.6 12.8 6
International 37.4 33.5 12
----- ------ ----
External Revenues 196.7 233.3 (16)
Interco. Svcs. for CMG 1.1 2.9 (62)
----- ------ ----
Total IMG Revenues 197.8 236.2 (16)
Costs & Expenses:
Cost of Providing
Services & Products 99.0 110.2 (10)
Selling, General & Admin. 39.4 34.9 13
Research & Development 21.9 23.3 (6)
Depreciation 7.8 10.0 (22)
Amortization 1.5 1.4 7
------ ------ ----
Total Costs & Expenses 169.6 179.8 (6)
------ ------ ----
Operating Income $ 28.2 $ 56.4 (50)
====== ======
The operating segment data for the Information Management Group
(IMG) shown above reflects the detailed revenue and expense data
for IMG, as reported under U.S. GAAP, that will be presented in
the Convergys 10-Q for the three months ended March 31, 2003.
Convergys Corporation
Customer Management Group
Operating Segment Data
In Millions
(Unaudited)
For the Three Months
Ended March 31,
%
2003 2002 Chg.
Revenues:
Communications $229.9 $231.5 (1)
Technology 54.1 54.0 -
Financial Services 31.0 19.9 56
Other 48.7 48.8 -
------ ------ ----
Total CMG Revenues 363.7 354.2 3
Costs & Expenses:
Cost of Providing
Services & Products 225.7 218.7 3
Selling, General & Admin. 73.1 68.4 7
Research & Development 1.3 2.9 (55)
Depreciation 18.4 18.1 2
Amortization 2.2 2.1 5
------ ------ ----
Total Costs & Expenses 320.7 310.2 3
------ ------ ----
Operating Income $ 43.0 $ 44.0 (2)
====== ======
The operating segment data for the Customer Management Group
(CMG) shown above reflects the detailed revenue and expense data
for CMG, as reported under U.S. GAAP, that will be presented in
the Convergys 10-Q for the three months ended March 31, 2003.
Convergys Corporation
Reconciliation of Pro Forma Operating Results
(In Millions Except Per Share Amounts)
Income Income
(Loss) Tax Net
Before (Expense)/ Income Diluted
Tax Benefit (Loss) EPS
------- -------- ------- -------
First Quarter 2003:
--------------------
Results as reported
under U.S. GAAP $ 55.4 $(20.5) $ 34.9 $ 0.22
Less: Special items (a) (9.9) 3.5 (6.4) (0.04)
------ ------ ------ ------
Results excluding
special items
(a non-GAAP measure) $ 65.3 $(24.0) $ 41.3 $ 0.26
====== ====== ====== ======
First Quarter 2002:
--------------------
Results as reported
under U.S. GAAP $ 94.3 $(34.7) $ 59.6 $ 0.35
Less: Special items - - - -
------ ------ ------ ------
Results excluding
special items
(a non-GAAP measure) $ 94.3 $(34.7) $ 59.6 $ 0.35
====== ====== ====== ======
The schedule above provides a reconciliation of the Company's
results of operations, as reported under U.S. Generally Accepted
Accounting Principles (U.S. GAAP), to the pro forma results of
operations (non-U.S. GAAP), which excludes special items.
(a) Reflects the $9.9 equity loss generated from the Company's
investment in the Cellular Partnership, that resulted from
the partnership's settlement of its lawsuit with West Side
Cellular Communications, Inc.
NOTE TO MEDIA: Multimedia assets relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc this story will be available for journalists to download beginning today at www.newstream.com and at www.businesswire.com Note: A photo is available at URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : http://www.businesswire.com/cgi-bin/photo.cgi?pw.042203/bb14 |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion