PRGSchultz International Inc. (PRGX, Financial) filed Quarterly Report for the period ended 2012-09-30.
Prgx Global, Inc. has a market cap of $187.7 million; its shares were traded at around $7.6 with a P/E ratio of 61.8 and P/S ratio of 0.9.
Recovery Audit Services Americas revenues increased by $2.3 million, or 7.3%, for the third quarter of 2012 compared to the third quarter of 2011. For the nine months ended September 30, 2012, revenues increased by $3.6 million, or 4.1%, compared to the same period in the prior year. One of the factors contributing to changes in our reported revenues is the strength of the U.S. dollar relative to foreign currencies. Changes in the average value of the U.S. dollar relative to foreign currencies impact our reported revenues. On a constant dollar basis, adjusted for changes in foreign exchange (FX) rates, revenues for the third quarter of 2012 increased by 8.8% compared to an increase of 7.3% as reported and increased by 5.8% during the first nine months of 2012 compared to an increase of 4.1% as reported.
In addition to the impact of the change in FX rates, the year over year net increases in our Recovery Audit Services Americas revenues in the three and nine months ended September 30, 2012 were due to a number of factors. Revenues increased 8.0% in the third quarter and 8.9% in the nine-month period due to new clients, including those we now serve as a result of our acquisition of BSI. Excluding clients acquired from BSI, revenues increased 1.7% in the third quarter and 1.0% in the nine-month period due to new clients. Revenues from former BSI clients increased 40.4% in the third quarter and 56.7% in the nine-month period compared to the comparable pre-acquisition periods in 2011. In addition to these increases, revenues increased 1.3% in the third quarter but declined 1.9% in the nine-month period at our existing clients. The increase in the third quarter of 2012 primarily was due to higher claim levels generated at some of our larger clients. The decline in the nine-month period is due to the 2011 period containing some atypical revenues at several clients, including revenues from client-driven audit timeline changes and some individually significant claims. Revenues also declined 2.0% in the third quarter and 2.9% in the nine-month period due to discontinued clients and reductions in audit scope. The most significant of these changes relates to a single discontinued client that recently returned to PRGX and for which we began generating revenues in the second quarter of 2012 and increased revenues in the third quarter of 2012.
Recovery Audit Services Europe/Asia-Pacific revenues decreased by $3.1 million, or 21.4%, for the three months ended September 30, 2012 compared to the same period in 2011. For the nine months ended September 30, 2012, revenues decreased by $5.9 million, or 13.1%, compared to the nine months ended September 30, 2011. The strength of the U.S. dollar relative to foreign currencies in Europe, Asia and Australia negatively impacted reported revenues in the third quarter and first nine months of 2012. On a constant dollar basis, adjusted for changes in FX rates, revenues for the third quarter of 2012 decreased by 18.4% compared to a decrease of 21.4% as reported and decreased by 9.3% during the first nine months of 2012 compared to a decrease of 13.1% as reported. These decreases on a constant dollar basis were due primarily to lower revenues at continuing clients, primarily due to fewer individually significant claims at continuing clients than generated in the 2011 periods, which resulted in declines of 12.4% in the third quarter and 4.6% in the nine-month period. Decreases due to discontinued clients were approximately 7.3% in the third quarter and 4.6% in the nine-month period. We also experienced lower revenues from cyclical clients, which generally include commercial companies for which we complete the audits in a relatively short period of time, and then have several quarters with no revenues while we are between audits. Revenues from cyclical clients declined 3.6% in the third quarter and 8.7% in the nine-month period. We partially offset these constant dollar decreases with revenues from new clients, which increased revenues by 1.9% in the third quarter and 4.8% in the nine-month period. While new client growth continues to be positive, we experienced some unanticipated delays at several new clients and anticipate that we will earn the related revenues over the next several quarters.
New Services revenues increased by $1.2 million, or 19.0%, for the three months ended September 30, 2012 compared to the same period in 2011. For the nine months ended September 30, 2012, revenues increased by $4.5 million, or 22.2%, compared to the nine months ended September 30, 2011. We generate New Services revenues from our Profit Optimization services and our healthcare claims recovery audit services, which are derived primarily from our participation in the Medicare RAC program. Healthcare claims recovery audit revenues nearly doubled from the third quarter of 2011 to the third quarter of 2012 and nearly tripled from the 2011 nine-month period to the 2012 nine-month period. These increases were partially offset by decreases in the three and nine months ended September 30, 2012 of approximately 9.3% and 24.1%, respectively, in our Profit Optimization services revenues. The increases in healthcare claims recovery audit revenues are due to improvements in our performance under the Medicare RAC program. A significant portion of first quarter 2012 healthcare claims recovery audit revenues related to claims identified in prior quarters but not accepted by the claims processor until the first quarter of 2012, which benefited the 2012 nine-month period.
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Prgx Global, Inc. has a market cap of $187.7 million; its shares were traded at around $7.6 with a P/E ratio of 61.8 and P/S ratio of 0.9.
Highlight of Business Operations:
Total revenues increased for the three months ended September 30, 2012 by $0.3 million, or 0.6%, compared to the same period in 2011. Total revenues increased for the nine months ended September 30, 2012 by $2.2 million, or 1.4%, compared to the same period in 2011.Recovery Audit Services Americas revenues increased by $2.3 million, or 7.3%, for the third quarter of 2012 compared to the third quarter of 2011. For the nine months ended September 30, 2012, revenues increased by $3.6 million, or 4.1%, compared to the same period in the prior year. One of the factors contributing to changes in our reported revenues is the strength of the U.S. dollar relative to foreign currencies. Changes in the average value of the U.S. dollar relative to foreign currencies impact our reported revenues. On a constant dollar basis, adjusted for changes in foreign exchange (FX) rates, revenues for the third quarter of 2012 increased by 8.8% compared to an increase of 7.3% as reported and increased by 5.8% during the first nine months of 2012 compared to an increase of 4.1% as reported.
In addition to the impact of the change in FX rates, the year over year net increases in our Recovery Audit Services Americas revenues in the three and nine months ended September 30, 2012 were due to a number of factors. Revenues increased 8.0% in the third quarter and 8.9% in the nine-month period due to new clients, including those we now serve as a result of our acquisition of BSI. Excluding clients acquired from BSI, revenues increased 1.7% in the third quarter and 1.0% in the nine-month period due to new clients. Revenues from former BSI clients increased 40.4% in the third quarter and 56.7% in the nine-month period compared to the comparable pre-acquisition periods in 2011. In addition to these increases, revenues increased 1.3% in the third quarter but declined 1.9% in the nine-month period at our existing clients. The increase in the third quarter of 2012 primarily was due to higher claim levels generated at some of our larger clients. The decline in the nine-month period is due to the 2011 period containing some atypical revenues at several clients, including revenues from client-driven audit timeline changes and some individually significant claims. Revenues also declined 2.0% in the third quarter and 2.9% in the nine-month period due to discontinued clients and reductions in audit scope. The most significant of these changes relates to a single discontinued client that recently returned to PRGX and for which we began generating revenues in the second quarter of 2012 and increased revenues in the third quarter of 2012.
Recovery Audit Services Europe/Asia-Pacific revenues decreased by $3.1 million, or 21.4%, for the three months ended September 30, 2012 compared to the same period in 2011. For the nine months ended September 30, 2012, revenues decreased by $5.9 million, or 13.1%, compared to the nine months ended September 30, 2011. The strength of the U.S. dollar relative to foreign currencies in Europe, Asia and Australia negatively impacted reported revenues in the third quarter and first nine months of 2012. On a constant dollar basis, adjusted for changes in FX rates, revenues for the third quarter of 2012 decreased by 18.4% compared to a decrease of 21.4% as reported and decreased by 9.3% during the first nine months of 2012 compared to a decrease of 13.1% as reported. These decreases on a constant dollar basis were due primarily to lower revenues at continuing clients, primarily due to fewer individually significant claims at continuing clients than generated in the 2011 periods, which resulted in declines of 12.4% in the third quarter and 4.6% in the nine-month period. Decreases due to discontinued clients were approximately 7.3% in the third quarter and 4.6% in the nine-month period. We also experienced lower revenues from cyclical clients, which generally include commercial companies for which we complete the audits in a relatively short period of time, and then have several quarters with no revenues while we are between audits. Revenues from cyclical clients declined 3.6% in the third quarter and 8.7% in the nine-month period. We partially offset these constant dollar decreases with revenues from new clients, which increased revenues by 1.9% in the third quarter and 4.8% in the nine-month period. While new client growth continues to be positive, we experienced some unanticipated delays at several new clients and anticipate that we will earn the related revenues over the next several quarters.
New Services revenues increased by $1.2 million, or 19.0%, for the three months ended September 30, 2012 compared to the same period in 2011. For the nine months ended September 30, 2012, revenues increased by $4.5 million, or 22.2%, compared to the nine months ended September 30, 2011. We generate New Services revenues from our Profit Optimization services and our healthcare claims recovery audit services, which are derived primarily from our participation in the Medicare RAC program. Healthcare claims recovery audit revenues nearly doubled from the third quarter of 2011 to the third quarter of 2012 and nearly tripled from the 2011 nine-month period to the 2012 nine-month period. These increases were partially offset by decreases in the three and nine months ended September 30, 2012 of approximately 9.3% and 24.1%, respectively, in our Profit Optimization services revenues. The increases in healthcare claims recovery audit revenues are due to improvements in our performance under the Medicare RAC program. A significant portion of first quarter 2012 healthcare claims recovery audit revenues related to claims identified in prior quarters but not accepted by the claims processor until the first quarter of 2012, which benefited the 2012 nine-month period.
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