37 unchanged sentences
Our utilization rate can also be affected by seasonal variations in the demand for our services from our clients.
−Removed: The number of business work days is also affected by the number of vacation days taken by our consultants and holidays in each quarter.
−Removed: We typically have fewer business work days available in the fourth quarter of the year, which can impact revenues during that period.
+Added: The number of business workdays is also affected by the number of vacation days taken by our consultants and holidays in each quarter.
+Added: We typically have fewer business workdays available in the fourth quarter of the year, which can impact revenues during that period.
Time and expense engagements do not provide us with a high degree of predictability as to performance in future periods.
1 unchanged sentence
The volume of work performed for any particular client can vary widely from period to period.
−Removed: RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2021 AND JUNE 30, 2020
−Removed: Revenues are generally derived from fixed fee contracts as well as engagements priced on a time and materials basis, which are recorded based on actual time worked as the services are performed.
−Removed: In addition, we also earn revenues which are contingent on the attainment of certain contractual milestones.
−Removed: Revenues related to materials (mainly out‑of‑pocket expenses such as airfare, lodging and meals) required during an engagement generally do not include a profit mark up and can be charged and reimbursed separately or as part of the overall fee arrangement.
−Removed: Invoices are issued to clients monthly, semimonthly or in accordance with the specific contractual terms of each project.
−Removed: We operate in one segment, fact‑based sourcing advisory services.
−Removed: We operate principally in the Americas, Europe, and Asia Pacific.
−Removed: Our foreign operations are subject to local government regulations and to the uncertainties of the economic and political conditions of those areas, and the revenue for our foreign operations is predominantly invoiced and collected in local currency.
+Added: RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021 AND SEPTEMBER 30, 2020
Geographical revenue information for the segment is as follows:
−Removed: Three Months Ended June 30,
+Added: Three Months Ended September 30,
Geographic Area
1 unchanged sentence
Total revenues
−Removed: Revenues increased $13.2 million, or approximately 23%, for the second quarter of 2021.
−Removed: The increase in revenue in the Americas and Europe was primarily attributable to an increase in our Advisory and Research service lines.
+Added: Revenues increased $9.5 million, or approximately 15%, for the third quarter of 2021.
+Added: The increase in revenue in the Americas was primarily attributable to an increase in our Advisory and Research service lines.
The increase in revenue in the Asia Pacific was primarily attributable to an increase in our Advisory service line.
+Added: The decrease in revenue in Europe was primarily attributable to a decrease in our Advisory service line, partially offset by an increase in Research service line revenues.
The translation of foreign currency revenues into U.S.
2 unchanged sentences
The following table presents a breakdown of our operating expenses by category:
−Removed: Three Months Ended June 30,
+Added: Three Months Ended September 30,
Operating Expenses
4 unchanged sentences
Total operating expenses
−Removed: Total operating expenses increased $10.9 million, or approximately 20%, for the second quarter of 2021.
−Removed: The increase in operating expenses were primarily due to higher compensation costs of $7.3 million and contract labor of $3.9 million.
+Added: Total operating expenses increased $5.2 million, or approximately 9%, for the third quarter of 2021.
+Added: The increase in operating expenses were primarily due to higher:
+Added: contract labor costs of $4.5 million, compensation costs of $2.5 million, and travel and entertainment expenses of $0.2 million.
+Added: These costs were partially offset by lower:
+Added: restructuring costs of $1.3 million and non-cash stock compensation of $0.7 million.
Compensation costs consist of a mix of fixed and variable salaries, annual bonuses, benefits and profit sharing plan contributions.
A portion of compensation expenses for certain billable employees are allocated between direct costs and selling, general and administrative costs based on relative time spent between billable and non-billable activities.
−Removed: Bonus compensation is determined based on achievement against Company financial and individual targets, and is accrued monthly throughout the year based on management’s estimates of target achievement.
+Added: compensation is determined based on achievement against Company financial and individual targets and is accrued monthly throughout the year based on management’s estimates of target achievement.
Statutory and elective profit sharing plans are offered to employees as appropriate.
9 unchanged sentences
Because our billable personnel operate primarily on client premises or work remotely, all occupancy expenses are recorded as general and administrative.
−Removed: Depreciation and amortization expense in the second quarter of 2021 and 2020 was $1.3 million and $1.5 million, respectively.
+Added: Depreciation and amortization expense in the third quarter of 2021 and 2020 was $1.3 million and $1.6 million, respectively.
The decrease of $0.2 million in depreciation and amortization expense was primarily due to prior year intangible assets that are now fully amortized.
8 unchanged sentences
The following table presents a breakdown of other income (expense), net:
−Removed: Three Months Ended June 30,
+Added: Three Months Ended September 30,
Other income (expense), net
6 unchanged sentences
Income Tax Expense
−Removed: Our quarterly effective tax rate varies from period to period based on the mix of earnings among the various state and foreign tax jurisdictions in which business is conducted and the level of non-deductible expenses projected to be incurred during the current fiscal year.
−Removed: Our effective tax rate for the three months ended June 30, 2021 was 22.5% compared to 77.0% for the quarter ended June 30, 2020.
−Removed: The difference for the quarter ended June 30, 2021 was primarily due to the impact of earnings and losses in certain foreign jurisdictions, and the impact of vesting of restricted stock units.
−Removed: The Company’s effective tax rate for the quarter ended June 30, 2021 was lower than the statutory rate primarily due to the impact of vesting of restricted stock units.
−Removed: There were no significant changes in uncertain tax position reserves or valuation allowances during the quarter ended June 30, 2021.
−Removed: RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND JUNE 30, 2020
+Added: Our quarterly effective tax rate varies from period to period based on the mix of earnings among the various state and foreign tax jurisdictions in which business is conducted and the level of non-deductible expenses projected to be incurred
+Added: during the current fiscal year.
+Added: Our effective tax rate for the three months ended September 30, 2021 was 34.9% compared to 9.9% for the quarter ended September 30, 2020.
+Added: The difference for the quarter ended September 30, 2021 was primarily due to the impact of earnings and losses in certain foreign jurisdictions, and the impact of vesting of restricted stock units.
+Added: The Company’s effective tax rate for the quarter ended September 30, 2021 was higher than the statutory rate primarily due to the impact of foreign operations.
+Added: There were no significant changes in uncertain tax position reserves or valuation allowances during the quarter ended September 30, 2021.
+Added: RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND SEPTEMBER 30, 2020
Revenues are generally derived from fixed fee contracts as well as engagements priced on a time and materials basis, which are recorded based on actual time worked as the services are performed.
6 unchanged sentences
Geographical revenue information for the segment is as follows:
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
Geographic Area
1 unchanged sentence
Total revenues
−Removed: Revenues increased $16.1 million, or approximately 13%, for the six months of 2021.
+Added: Revenues increased $25.5 million, or approximately 14%, for the nine months of 2021.
The increase in revenues in the Americas and Asia Pacific was primarily attributable to an increase in our Advisory service line.
−Removed: The increase in revenues
−Removed: in Europe was primarily attributable to the increase in our Advisory and Research service lines.
+Added: The increase in revenues in Europe was primarily attributable to the increase in our Research service line.
The translation of foreign currency revenues into U.S.
2 unchanged sentences
The following table presents a breakdown of our operating expenses by category:
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
Operating Expenses
4 unchanged sentences
Total operating expenses
−Removed: Total operating expenses increased $8.0 million, or approximately 7%, for the six months of 2021 with an increase in direct costs and expenses for advisors.
+Added: Total operating expenses increased $13.2 million, or approximately 7%, for the nine months of 2021.
The increase in operating expenses were primarily due to higher:
1 unchanged sentence
These costs were partially offset by lower:
−Removed: travel and entertainment expenses of $4.9 million, bad debt expense of $0.8 million, and non-cash stock based compensation of $0.8 million.
−Removed: Compensation costs consist of a mix of fixed and variable salaries, annual bonuses, benefits and profit sharing plan contributions.
−Removed: A portion of compensation expenses for certain billable employees are allocated between direct costs and selling, general and administrative costs based on relative time spent between billable and non-billable activities.
−Removed: Bonus compensation is determined based on achievement against Company financial and individual targets, and is accrued monthly throughout the year based on management’s estimates of target achievement.
−Removed: Statutory and elective profit sharing plans are offered to employees as appropriate.
−Removed: Direct costs also include employee taxes, health insurance, workers compensation and disability insurance.
−Removed: Sales and marketing costs consist principally of compensation expense related to business development, proposal preparation and delivery and negotiation of new client contracts.
−Removed: Costs also include travel expenses relating to the pursuit of sales opportunities, expenses for hosting periodic client conferences, public relations activities, participation in industry conferences, industry relations, website maintenance and business intelligence activities.
−Removed: The Company maintains a dedicated global marketing function responsible for developing and managing sales campaigns, brand promotion, the ISG Index and assembling proposals.
−Removed: We maintain a comprehensive program for training and professional development.
−Removed: Related expenses include product training, updates on new service offerings or methodologies and development of project management skills.
−Removed: Also included in training and professional development are expenses associated with the development, enhancement and maintenance of our proprietary methodologies and tools and the systems that support them.
−Removed: General and administrative expenses consist principally of executive management compensation, allocations of billable employee compensation related to general management activities, IT infrastructure, and costs for the finance, accounting, information technology and human resource functions.
−Removed: General and administrative costs also reflect continued investment associated with implementing and operating client and employee management systems.
−Removed: Because our billable personnel operate primarily on client premises or work remotely, all occupancy expenses are recorded as general and administrative.
−Removed: Depreciation and amortization expense in the six months of 2021 and 2020 was $2.6 million and $3.1 million, respectively.
+Added: travel and entertainment expenses of $4.7 million, non-cash stock based compensation of $1.5 million, bad debt expense of $0.8 million, restructuring costs of $0.5 million, and communication costs of $0.3 million.
+Added: Depreciation and amortization expense in the nine months of 2021 and 2020 was $4.0 million and $4.6 million, respectively.
The decrease of $0.7 million in depreciation and amortization expense was primarily due to prior year intangible assets that are now fully amortized.
1 unchanged sentence
Depreciation expense is generally computed by applying the straight-line method over the estimated useful lives of assets.
−Removed: We also capitalize certain costs associated with the purchase and development of
−Removed: internal-use software, system conversions and website development costs.
+Added: We also capitalize certain costs associated with the purchase and development of internal-use software, system conversions and website development costs.
These costs are amortized over the estimated useful life of the software or system.
4 unchanged sentences
The following table presents a breakdown of other income (expense), net:
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
Other income (expense), net
7 unchanged sentences
Our quarterly effective tax rate varies from period to period based on the mix of earnings among the various state and foreign tax jurisdictions in which business is conducted and the level of non-deductible expenses projected to be incurred during the current fiscal year.
−Removed: Our effective tax rate for the six months ended June 30, 2021 was 22.6% compared to 193.6% for the six months ended June 30, 2020.
−Removed: The difference for the six months ended June 30, 2021 was primarily due to the impact of earnings and losses in certain foreign jurisdictions and the impact of vesting of restricted stock units.
−Removed: The Company’s effective tax rate for the six months ended June 30, 2021 was lower than the statutory rate primarily due to the impact of vesting of restricted stock units.
−Removed: There were no significant changes in uncertain tax position reserves or valuation allowances during the quarter ended June 30, 2021.
+Added: Our effective tax rate for the nine months ended September 30, 2021 was 27.7% compared to 57.6% for the nine months ended September 30, 2020.
+Added: The difference for the nine months ended September 30, 2021 was primarily due to the impact of earnings and losses in certain foreign jurisdictions and the impact of vesting of restricted stock units.
+Added: The Company’s effective tax rate for the nine months ended September 30, 2021 was higher than the statutory rate primarily due to the impact of vesting of restricted stock units.
+Added: There were no significant changes in uncertain tax position reserves or valuation allowances during the nine months ended September 30, 2021.
NON-GAAP FINANCIAL PRESENTATION
6 unchanged sentences
These are non-GAAP measures that the Company believes provide useful information to both management and investors by excluding certain expenses and financial implications of foreign currency translations that management believes are not indicative of ISG’s core operations.
−Removed: These non-GAAP measures
−Removed: are used by the Company to evaluate the Company’s business strategies and management’s performance.
+Added: These non-GAAP measures are used by the Company to evaluate the Company’s business strategies and management’s performance.
These non-GAAP financial measures exclude non-cash and certain other special charges that many investors believe may obscure the user’s overall understanding of the Company’s current financial performance and the Company’s prospects for the future.
We believe that these non-GAAP measures provide useful information to investors because they improve the comparability of the financial results between periods and provide for greater transparency of key measures used to evaluate the Company’s performance.
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
(in thousands)
−Removed: Net income (loss)
Interest expense (net of interest income)
7 unchanged sentences
Adjusted EBITDA
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
(in thousands)
−Removed: Net income (loss)
Non-cash stock compensation
8 unchanged sentences
Adjusted net income
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
−Removed: Net income (loss) per diluted share
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
+Added: Net income per diluted share
Non-cash stock compensation
17 unchanged sentences
The volume of billings and timing of collections and payments affect these account balances.
−Removed: As of June 30, 2021, our cash, cash equivalents and restricted cash were $43.9 million, a net increase of $0.1 million from December 31, 2020, which was primarily attributable to the following:
+Added: As of September 30, 2021, our cash, cash equivalents and restricted cash were $54.6 million, a net increase of $10.8 million from December 31, 2020, which was primarily attributable to the following:
● net cash provided by operating activities of $39.5 million;
−Removed: ● treasury shares repurchases of $11.2 million;
+Added: ● treasury shares repurchased of $13.4 million;
● payments related to tax withholding for stock-based compensation of $6.7 million;
14 unchanged sentences
● The senior secured credit facility contains customary events of default, including cross-default to other material agreements, judgment default and change of control.
−Removed: The Company’s financial statements include outstanding borrowings of $76.6 million at June 30, 2021 and $78.8 million at December 31, 2020, which are carried at amortized cost.
+Added: The Company’s financial statements include outstanding borrowings of $75.6 million at September 30, 2021 and $78.8 million at December 31, 2020, which are carried at amortized cost.
The fair value of debt is classified within Level 3 of the fair value hierarchy.
−Removed: The fair value of the Company's outstanding borrowings is approximately $75.8 million and $77.7 million at June 30, 2021 and December 31, 2020, respectively.
+Added: The fair value of the Company's outstanding borrowings is approximately $74.7 million and $77.7 million at September 30, 2021 and December 31, 2020, respectively.
The fair values of debt have been estimated using a discounted cash flow analysis based on the Company's incremental borrowing rate for similar borrowing arrangements.
The incremental borrowing rate used to discount future cash flows 1.9%.
−Removed: The Company also considered recent transactions of peer group companies for similar instruments with comparable terms and maturities as well as an analysis of current market conditions.
+Added: The Company also considered recent transactions of peer group companies for similar instruments with comparable terms and maturities as well as an analysis of current market conditions and interest rates.
+Added: As of September 30, 2021 and December 31, 2020, there were no borrowings under the revolver.
We anticipate that our current cash and the ongoing cash flows from our operations will be adequate to meet our working capital, capital expenditure, and debt financing needs for at least the next twelve months.
5 unchanged sentences
In light of the pandemic, there is uncertainty regarding the marketplace demand for the Company’s services and thus the Company’s future revenue generation.
−Removed: Accordingly, in light of this uncertainty, the Company has developed plans to further reduce operating expenses to the extent more prolonged revenue shortfalls are experienced which would prevent the Company from complying with its financial covenants.
+Added: Accordingly, in light of this uncertainty, the Company has developed plans to further reduce operating expenses to the extent more prolonged revenue shortfalls are experienced which would prevent
+Added: the Company from complying with its financial covenants.
The Company is currently in compliance with its financial covenants.
Dividend Program
−Removed: In May 2021, the Company announced it will pay a second-quarter dividend of $0.03 per share of common stock.
+Added: In August 2021, the Company announced it will pay a third-quarter dividend of $0.03 per share of common stock.
The Company expects to pay a total cash dividend of $0.12 per share over the four quarters ending March 2022.
−Removed: On August 5, 2021, the Board of Directors approved the third-quarter dividend of $0.03 per share.
+Added: On November 4, 2021, the Board of Directors approved the fourth-quarter dividend of $0.03 per share, payable December 17, 2021, to shareholders of record as of December 3, 2021.
The dividends are accounted for as a decrease to Stockholders’ Equity.
16 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.