Diamond Reports First Quarter Fiscal Year 2009 Results.Expects Second Quarter Net Revenue to Increase up to 4% CHICAGO -- Diamond Management & Technology Consultants, Inc. (Nasdaq: DTPI), a premier global management and technology consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a , today announced results for its first quarter of fiscal year 2009 (ended June 30, 2008). Financial Review Net revenue for the first quarter ended June 30, 2008 was $38.8 million, compared with $42.4 million in the prior quarter, and $47.9 million for the same period in the prior fiscal year. "We're pleased to report first quarter results ahead of expectations, especially given the current market environment. In addition, we have visibility into an improving second quarter," said Adam Gutstein, 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 Diamond. "Our clients recognize that the economic environment continues to be a challenging one, and as such are focused on projects that improve their cost structure and help them deliver products and services more efficiently. Many of our clients also see the downturn as an opportunity to differentiate themselves, and that creates opportunities for Diamond." The Company reported a loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the before income taxes of $1.0 million in the first quarter, compared with income from continuing operations before income taxes of $1.0 million in the prior quarter and $6.4 million reported in the first quarter of the prior fiscal year. Income from continuing operations after income taxes was $0.7 million, including the reversal of a $1.5 million international tax valuation allowance. This compares with income from continuing operations after income taxes of $0.6 million in the prior quarter and $4.0 million in the same period last year. The Company reported 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 from continuing operations of $0.03, including the reversal of the international tax valuation allowance which provided a benefit of $0.05 per diluted share, compared with $0.02 per diluted share in the prior quarter and $0.12 per diluted share in the same period last year. Diluted weighted average shares outstanding decreased to 27.3 million shares from 29.3 million in the prior quarter and 33.0 million in the year-ago period. As disclosed last quarter, the Company will provide Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become data as supplemental information to help investors evaluate our business performance. The Company defines Adjusted EBITDA as income from continuing operations before interest, taxes, depreciation, amortization and stock-based compensation expense. The Company believes Adjusted EBITDA is a useful indicator of the Company's financial and operational performance and its ability to generate cash flows from operations that are available for 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. and capital expenditures. Adjusted EBITDA was $3.0 million in the first quarter of fiscal year 2009. Free cash flow (cash flow used in operating activities less capital expenditures) in the first quarter of fiscal year 2008 was negative $3.2 million, compared with $1.2 million in the prior quarter and $0.4 million in the year-ago period. The Company ended the first quarter with cash and cash equivalents of $48.1 million and no borrowings. Share Repurchase During the first quarter, the Company repurchased approximately 1.0 million shares at an average price of $5.25 for a total payout of $5.4 million. As of June 30, 2008, the remaining stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. authorization outstanding was over $34 million. Business Metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. The Company served 69 clients during the first quarter of fiscal year 2008, compared with 63 clients served in both the fourth quarter of fiscal year 2008 and the first quarter last year. The Company added 24 new clients, compared to 14 new clients in the fourth quarter and 12 clients in the year-ago period. The top five clients represented 34% of revenue during the first quarter of fiscal year 2008 compared to 39% in the fourth quarter and 37% in the year-ago period. The Company ended the first quarter with 469 client-serving professionals, compared with 510 in the fourth quarter and 496 in the year-ago period. Chargeability was 59% in the first quarter of fiscal year 2008, compared with 60% in the prior quarter and 65% in the year-ago period. Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. net revenue per professional was $317 thousand, compared with $332 thousand in the fourth quarter and $382 thousand in the year-ago period. Annualized voluntary attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: was 25% in the first quarter, compared with 19% in the first quarter last year. Revenue by industry practice in the first quarter was: 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. : 28%; Insurance: 22%; Healthcare: 21%; Enterprise: 21%; Telecom: 4%; and Public Sector: 4%. Business Outlook Second Quarter 2009 The Company expects second quarter net revenue to be flat to up 4% over the June quarter, pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. of $1.0 to $1.75 million, Adjusted EBITDA in the range of $5.0 to $6.0 million and GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). 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. to be in the range of $0.00 to $0.02 per diluted share. The Company expects its reported tax expense to be in a range of $1.0 million to $1.25 million and its weighted average share count to be approximately 27 million shares. Free cash flow is expected to be $4.0 million to $6.0 million. Conference Call Diamond will host a conference call today, August 7, 2008 at 8:00 am CT to discuss the results of the quarter. The dial-in number for the conference call is 800-926-4481 for North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. callers and 212-231-2900 for international callers. The replay will be available until August 14, 2008 and can be accessed by calling 402-977-9140, then entering passcode number 21386776. The call will be broadcast live and archived on Diamond's web site at www.diamondconsultants.com. About Diamond Diamond is a management and technology consulting firm. Recognizing that information and technology shape market dynamics, Diamond's small teams of experts work across functional and organizational boundaries to improve growth and profitability. Since the greatest value in a strategy, and its highest risk, resides in its implementation, Diamond also provides proven execution capabilities. We deliver three critical elements to every project: fact-based objectivity, spirited collaboration, and sustainable results. Diamond is headquartered in Chicago, with offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Washington, D.C., Hartford, London and Mumbai. Diamond is publicly traded on the Nasdaq Global Select Market under the symbol "DTPI." To learn more, visit www.diamondconsultants.com. 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. Statements in this press release that do not involve strictly historical or factual matters are forward-looking statements within the meaning of the "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. " provisions of the federal securities laws. Forward-looking statements involve estimates, projections, assumptions, risks and uncertainties and speak only as of the date of this release based on information available to the Company as of the date of this release, and the Company assumes no obligation to update any forward-looking statements. Actual results may differ materially from the results projected in any forward-looking statement. For a discussion of some of the risks and uncertainties that could cause actual results to differ materially, please refer to the risks and uncertainties identified in our filings with the SEC. Non-GAAP Financial Measures This press release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management believes the non-GAAP measures are useful to investors, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with U.S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP), please see the section below entitled "Unaudited Reconciliations of GAAP to Non-GAAP Financial Measures." [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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