43 unchanged sentences
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, 2022 AND JUNE 30, 2021
+Added: RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2022 AND SEPTEMBER 30, 2021
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 $0.1 million for the second quarter of 2022.
−Removed: The decrease in revenue in the Americas was primarily attributable to a decrease in our Automation service line, partially offset by an increase in our Advisory, Research, and GovernX service lines.
−Removed: The decrease in revenue in Europe was primarily attributable to a decrease in our Advisory and Network & Software Advisory Services (NaSa) service lines, partially offset by an increase in our Automation and Research service lines.
−Removed: The increase in revenue in Asia Pacific was primarily attributable to an increase in our Advisory and NaSa service lines, partially offset by a decrease in our Research service line.
+Added: Revenues decreased $2.3 million for the third quarter of 2022.
+Added: The decrease in revenue in the Americas was primarily attributable to a decrease in our Automation service line, partially offset by an increase in our Network & Software Advisory Services (NaSa), Advisory, Research, and GovernX service lines.
+Added: The decrease in revenue in Europe was primarily attributable to a decrease in our Automation and Research service lines, partially offset by an increase in our GovernX and NaSa service lines.
+Added: The decrease in revenue in Asia Pacific was primarily attributable to a decrease in our Advisory service line, partially offset by an increase in our GovernX and NaSa service lines.
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 decreased $1.2 million, or approximately 2%, for the second quarter of 2022.
−Removed: The decrease in operating expenses were primarily due to lower;
−Removed: contract labor of $1.7 million, compensation costs of $1.0 million, and severance, integration and other expense of $0.8 million.
−Removed: These costs were partially offset by higher:
−Removed: entertainment expense of $1.0 million, event related expenses of $0.5 million, non-cash stock compensation of $0.5 million, and professional fees of $0.3 million.
+Added: Total operating expenses decreased $2.4 million, or approximately 4%, for the third quarter of 2022.
+Added: The decrease in operating expenses was primarily due to lower:
+Added: contract labor of $2.7 million and license fees of $1.5 million.
+Added: were partially offset by higher:
+Added: travel and entertainment expense of $0.9 million, non-cash stock compensation of $0.5 million, and professional fees of $0.4 million.
Compensation costs consist of a mix of fixed and variable salaries, annual bonuses, benefits and profit sharing plan contributions.
12 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 2022 and 2021 was $1.3 million, respectively.
+Added: Depreciation and amortization expense in the third quarter of 2022 and 2021 was $1.3 million, respectively.
Our fixed assets consist of furniture, fixtures, equipment (mainly personal computers) and leasehold improvements.
7 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
4 unchanged sentences
Total other income (expense), net
−Removed: The total decrease of $0.1 million, or approximately 13%, was primarily the result of higher foreign currency transaction gains.
+Added: The total increase of $0.2 million, or approximately 39%, was primarily the result of higher interest expense attributable to higher interest rates, partially offset by higher foreign currency transaction gains.
Income Tax Expense
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 quarter ended June 30, 2022 was 25.7% compared to 22.5% for the quarter ended June 30, 2021.
−Removed: The difference for the quarter ended June 30, 2022 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, 2022 was higher than the statutory rate primarily due to the impact of foreign operations.
−Removed: There were no significant changes in uncertain tax position reserves or valuation allowances during the quarter ended June 30, 2022.
−Removed: RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND JUNE 30, 2021
+Added: Our effective tax rate for the quarter ended September 30, 2022 was 18.0% compared to 34.9% for the quarter ended September 30, 2021.
+Added: The difference for the quarter ended September 30, 2022 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, 2022 was lower 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 quarter ended September 30, 2022.
+Added: RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND SEPTEMBER 30, 2021
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 $6.1 million, or approximately 4%, for the six months of 2022.
−Removed: The increase in revenue in the Americas was primarily attributable to an increase in our Research, and GovernX service lines, partially offset by a decrease in our Automation service line.
−Removed: The increase in revenue in Europe was primarily attributable to an increase in our Automation, Research, and GovernX service lines, partially offset by a decrease in our NaSa and Advisory service lines.
+Added: Revenues increased $3.8 million, or approximately 2%, for the nine months of 2022.
+Added: The increase in revenue in the Americas was primarily attributable to an increase in our Research, GovernX and NaSa service lines, partially offset by a decrease in our Automation service line.
+Added: The decrease in revenue in Europe was primarily attributable to a decrease in our NaSa service line, partially offset by an increase in our GovernX service line.
The increase in revenue in Asia Pacific was primarily attributable to an increase in our Advisory and NaSa service lines.
3 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 $2.1 million, or approximately 2%, for the six months of 2022.
−Removed: The increase in operating expenses were primarily due to higher:
−Removed: compensation costs of $2.4 million, travel and entertainment expense of $1.8 million, event related expenses of $0.9 million, and bad debt expense of $0.5 million.
−Removed: These costs were partially offset by lower;
−Removed: contract labor of $1.9 million, severance, integration and other expense of $0.9 million, and occupancy expense of $0.3 million.
+Added: Total operating expenses decreased $0.4 million for the nine months of 2022.
+Added: The decrease in operating expenses were primarily due to lower:
+Added: contract labor of $4.6 million, license fees of $1.7 million, change in fair value of contingent consideration of $1.4 million, and severance, and integration and other expense of $0.9 million.
+Added: These costs were partially offset by higher:
+Added: travel and entertainment expense of $2.6 million, compensation costs of $2.1 million, event related expenses of $1.1 million, professional fees of $0.7 million, bad debt expense of $0.5 million, computer expenses of $0.5 million and non-cash stock compensation of $0.4 million.
Compensation costs consist of a mix of fixed and variable salaries, annual bonuses, benefits and profit sharing plan contributions.
12 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 six months of 2022 and 2021 was $2.6 million, respectively.
+Added: Depreciation and amortization expense in the nine months of 2022 and 2021 was $3.9 million and $4.0 million, respectively.
Our fixed assets consist of furniture, fixtures, equipment (mainly personal computers) and leasehold improvements.
7 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
4 unchanged sentences
Total other income (expense), net
−Removed: The total decrease of $0.2 million, or approximately 14%, was primarily the result of higher foreign currency transaction gains.
+Added: The total increase of approximately 1%, was primarily the result of higher interest expense attributable to higher interest rates, partially offset by higher foreign currency transaction gains.
Income Tax Expense
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, 2022 was 28.9% compared to 22.6% for the six months ended June 30, 2021.
−Removed: The difference for the six months ended June 30, 2022 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, 2022 was higher than the statutory rate primarily due to the impact of foreign operations.
−Removed: There were no significant changes in uncertain tax position reserves or valuation allowances during the quarter ended June 30, 2022.
+Added: Our effective tax rate for the nine months ended September 30, 2022 was 25.4% compared to 27.7% for the nine months ended September 30, 2021.
+Added: The difference for the nine months ended September 30, 2022 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, 2022 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, 2022.
NON-GAAP FINANCIAL PRESENTATION
9 unchanged sentences
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)
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)
7 unchanged sentences
Adjusted net income
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
Net income per diluted share
16 unchanged sentences
The volume of billings and timing of collections and payments affect these account balances.
−Removed: As of June 30, 2022, our cash, cash equivalents and restricted cash were $31.6 million, a net decrease of $16.1 million from December 31, 2021, which was primarily attributable to the following:
+Added: As of September 30, 2022, our cash, cash equivalents and restricted cash were $19.8 million, a net decrease of $27.8 million from December 31, 2021, which was primarily attributable to the following:
● net cash provided by operating activities of $4.6 million;
18 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 $72.3 million at June 30, 2022 and $74.5 million at December 31, 2021, which are carried at amortized cost.
+Added: The Company’s financial statements include outstanding borrowings of $71.3 million at September 30, 2022 and $74.5 million at December 31, 2021, 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 $70.7 million and $73.6 million at June 30, 2022 and December 31, 2021, respectively.
+Added: The fair value of the Company's outstanding borrowings is approximately $69.1 million and $73.6 million at September 30, 2022 and December 31, 2021, 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.
−Removed: The incremental borrowing rate used to discount future cash flows is 3.8% and 2.0% at June 30, 2022 and December 31, 2021, respectively.
+Added: The incremental borrowing rate used to discount future cash flows is 5.3% and 2.0% at September 30, 2022 and December 31, 2021, respectively.
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.
−Removed: As of June 30, 2022 and December 31, 2021, there were no borrowings under the revolver.
+Added: As of September 30, 2022 and December 31, 2021, there were no outstanding 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
Dividend Program
−Removed: In May 2022, the Company announced it will pay a second-quarter dividend of $0.04 per share of common stock.
+Added: In May 2022, the Company announced it will pay a quarterly dividend of $0.04 per share of common stock.
The Company expects to pay a total cash dividend of $0.16 per share for the four quarters ending March 2023.
−Removed: On August 2, 2022, the Board of Directors approved the third-quarter dividend of $0.04 per share, payable September 19, 2022, to shareholders of record as of September 6, 2022.
+Added: On November 1, 2022, the Board of Directors approved the fourth-quarter dividend of $0.04 per share, payable December 19, 2022, to shareholders of record as of December 5, 2022.
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.