Cost of services (excluding depreciation and amortization)
1,115
1,073
1,005
989
4,182
906
879
859
850
3,494
832
795
Selling, general and administrative (excluding depreciation and amortization)
143
145
139
133
560
127
121
112
119
479
116
111
Research and development (excluding depreciation and amortization)
2
3
2
4
11
3
2
1
2
8
1
-
Depreciation and amortization
116
116
113
115
460
115
112
115
117
459
117
115
Restructuring and related costs
20
17
31
13
81
16
26
8
21
71
7
29
Interest expense
33
37
22
20
112
20
20
20
18
78
17
15
(Gain) loss on extinguishment of debt
-
-
108
-
108
-
-
-
-
-
-
-
Goodwill impairment
-
-
-
-
-
284
1,067
-
601
1,952
-
-
(Gain) loss on divestitures and transaction costs
15
(60)
54
33
42
14
2
3
6
25
4
2
Litigation costs (recoveries), net
31
4
78
114
227
12
1
2
2
17
6
14
Separation costs
-
-
-
-
-
-
-
-
-
-
-
-
Other (income) expenses, net
(1)
(2)
4
4
5
(1)
1
(8)
(2)
(10)
2
(1)
Total Operating Costs and Expenses
1,474
1,333
1,556
1,425
5,788
1,496
2,231
1,112
1,734
6,573
1,102
1,080
Income (Loss) Before Income Taxes
(54)
54
(252)
(143)
(395)
(338)
(1,119)
(14)
(635)
(2,106)
(51)
(64)
Income tax expense (benefit)
(4)
43
(15)
(3)
21
(30)
(90)
2
(54)
(172)
(2)
(13)
Income (Loss) from Continuing Operations
(50)
11
(237)
(140)
(416)
(308)
(1,029)
(16)
(581)
(1,934)
(49)
(51)
Income (loss) from discontinued operations, net of tax
-
-
-
-
-
-
-
-
-
-
-
-
Net Income (Loss)
$ (50)
$ 11
$ (237)
$ (140)
$ (416)
$ (308)
$ (1,029)
$ (16)
$ (581)
$ (1,934)
$ (49)
$ (51)
GAAP Earnings (Loss) per Share - Diluted
Continuing operations
$ (0.26)
$ 0.04
$ (1.16)
$ (0.69)
$ (2.06)
$ (1.49)
$ (4.94)
$ (0.09)
$ (2.76)
$ (9.29)
$ (0.24)
$ (0.25)
Weighted Average Shares - Diluted(1)
205,093
208,889
206,605
207,103
206,056
207,944
208,496
209,626
211,190
209,318
211,093
209,129
(1) The computation of weighted average shares is the same for basic and diluted earnings per share for periods with net loss from continuing operations.
Non-GAAP
Back
Non-GAAP Reconcilliations: Adjusted Operating Income/Margin, Adjusted EBITDA/Margin and Adjusted Net Income/Margin
($ in millions)
Q1 2018
Q2 2018
Q3 2018
Q4 2018
FY 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
FY 2019
Q1 2020
Q2 2020
Revenue
$ 1,420
$ 1,387
$ 1,304
$ 1,282
$ 5,393
$ 1,158
$ 1,112
$ 1,098
$ 1,099
$ 4,467
$ 1,051
$ 1,016
Foreign currency impact
-
-
-
-
-
9
7
4
4
24
4
4
Revenue at Constant Currency
$ 1,420
$ 1,387
$ 1,304
$ 1,282
$ 5,393
$ 1,167
$ 1,119
$ 1,102
$ 1,103
$ 4,491
$ 1,055
$ 1,020
Income (Loss) from Continuing Operations
(50)
11
(237)
(140)
(416)
(308)
(1,029)
(16)
(581)
(1,934)
(49)
(51)
Adjustments:
Amortization of acquired intangible assets
61
60
60
61
242
62
61
61
62
246
60
60
Restructuring and related costs
20
17
31
13
81
16
26
8
21
71
7
29
Interest expense
33
37
22
20
112
20
20
20
18
78
17
15
(Gain) loss on extinguishment of debt
-
-
108
-
108
-
-
-
-
-
-
-
Goodwill impairment
-
-
-
-
-
284
1,067
-
601
1,952
-
-
(Gain) loss on divestitures and transaction costs
15
(60)
54
33
42
14
2
3
6
25
4
2
Litigation costs (recoveries), net
31
4
78
114
227
12
1
2
2
17
6
14
Separation costs
-
-
-
-
-
-
-
-
-
-
-
-
Other (income) expenses, net
(1)
(2)
4
4
5
(1)
1
(8)
(2)
(10)
2
(1)
Income tax expense (benefit)
(4)
43
(15)
(3)
21
(30)
(90)
2
(54)
(172)
(2)
(13)
Operating Income
$ 105
$ 110
$ 105
$ 102
$ 422
$ 69
$ 59
$ 72
$ 73
$ 273
$ 45
$ 55
Operating Income Margin
7.4%
7.9%
8.1%
8.0%
7.8%
6.0%
5.3%
6.6%
6.6%
6.1%
4.3%
5.4%
Operating Income
$ 105
$ 110
$ 105
$ 102
$ 422
$ 69
$ 59
$ 72
$ 73
$ 273
$ 45
$ 55
Other adjustments
-
-
-
-
-
-
4
-
-
4
-
-
NY MMIS/HE charge (credit)
-
(1)
(1)
(1)
(3)
-
-
-
1
1
-
-
CA MMIS charge (credit)
-
-
-
-
-
-
-
-
-
-
(7)
-
Adjusted Operating Income
$ 105
$ 109
$ 104
$ 101
$ 419
$ 69
$ 63
$ 72
$ 74
$ 278
$ 38
$ 55
Adjusted Operating Income Margin
7.4%
7.9%
8.0%
7.9%
7.8%
6.0%
5.7%
6.6%
6.7%
6.2%
3.6%
5.4%
Non-GAAP Reconcilliations: Adjusted EBITDA
($ in millions)
Q1 2018
Q2 2018
Q3 2018
Q4 2018
FY 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
FY 2019
Q1 2020
Q2 2020
Total Revenue
$ 1,420
$ 1,387
$ 1,304
$ 1,282
$ 5,393
$ 1,158
$ 1,112
$ 1,098
$ 1,099
$ 4,467
$ 1,051
$ 1,016
Reconcilation to Adjusted EBITDA
Income (Loss) from Continuing Operations
$ (50)
$ 11
$ (237)
$ (140)
$ (416)
$ (308)
$ (1,029)
$ (16)
$ (581)
$ (1,934)
$ (49)
$ (51)
Adjustments:
Interest expense
33
37
22
20
112
20
20
20
18
78
17
15
Income tax expense (benefit)
(4)
43
(15)
(3)
21
(30)
(90)
2
(54)
(172)
(2)
(13)
Depreciation and amortization
116
116
113
115
460
115
112
115
117
459
117
115
Contract inducement amortization
1
1
-
1
3
1
-
1
1
3
1
-
Restructuring and related costs
20
17
31
13
81
16
26
8
21
71
7
29
(Gain) loss on extinguishment of debt
-
-
108
-
108
-
-
-
-
-
-
-
Goodwill impairment
-
-
-
-
-
284
1,067
-
601
1,952
-
-
(Gain) loss on divestitures and transaction costs
15
(60)
54
33
42
14
2
3
6
25
4
2
Litigation costs (recoveries), net
31
4
78
114
227
12
1
2
2
17
6
14
Separation costs
-
-
-
-
-
-
-
-
-
-
-
-
Other charges (credits):
Other (income) expenses, net
(1)
(2)
4
4
5
(1)
1
(8)
(2)
(10)
2
(1)
Other adjustments
-
-
-
-
-
-
4
-
-
4
-
-
NY MMIS/HE charge (credit)
-
(1)
(1)
(1)
(3)
-
-
-
1
1
-
-
CA MMIS charge (credit)
-
-
-
-
-
-
-
-
-
-
(7)
-
Total other charges (credits)
(1)
(3)
3
3
2
(1)
5
(8)
(1)
(5)
(5)
(1)
Adjusted EBITDA
$ 161
$ 166
$ 157
$ 156
$ 640
$ 123
$ 114
$ 127
$ 130
$ 494
$ 96
$ 110
Adjusted EBITDA Margin
11.3%
12.0%
12.0%
12.2%
11.9%
10.6%
10.3%
11.6%
11.8%
11.1%
9.1%
10.8%
Non-GAAP Reconcilliations: Adjusted Net Income
($ in millions)
Q1 2018
Q2 2018
Q3 2018
Q4 2018
FY 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
FY 2019
Q1 2020
Q2 2020
Reconcilation to Adjusted PTP
Income (Loss) Before Income Taxes
$ (54)
$ 54
$ (252)
$ (143)
$ (395)
$ (338)
$ (1,119)
$ (14)
$ (635)
$ (2,106)
$ (51)
$ (64)
Adjustments:
Amortization of acquired intangible assets
61
60
60
61
242
62
61
61
62
246
60
60
Restructuring and related costs
20
17
31
13
81
16
26
8
21
71
7
29
(Gain) loss on extinguishment of debt
-
-
108
-
108
-
-
-
-
-
-
-
Goodwill impairment
-
-
-
-
-
284
1,067
-
601
1,952
-
-
(Gain) loss on divestitures and transaction costs
15
(60)
54
33
42
14
2
3
6
25
4
2
Litigation costs (recoveries), net
31
4
78
114
227
12
1
2
2
17
6
14
Separation costs
-
-
-
-
-
-
-
-
-
-
-
-
Other charges (credits):
Other (income) expenses, net
(1)
(2)
4
4
5
(1)
1
(8)
(2)
(10)
2
(1)
Other adjustments
-
-
-
-
-
-
4
-
-
4
-
-
NY MMIS/HE charge (credit)
-
(1)
(1)
(1)
(3)
-
-
-
1
1
-
-
CA MMIS charge (credit)
-
-
-
-
-
-
-
-
-
-
(7)
-
Total other charges (credits)
(1)
(3)
3
3
2
(1)
5
(8)
(1)
(5)
(5)
(1)
Adjusted PTP
$ 72
$ 72
$ 82
$ 81
$ 307
$ 49
$ 43
$ 52
$ 56
$ 200
$ 21
$ 40
Income tax expense (benefit)
$ (4)
$ 43
$ (15)
$ (3)
$ 21
$ (30)
$ (90)
$ 2
$ (54)
$ (172)
$ (2)
$ (13)
Tax impact on adjustments
29
(35)
36
26
56
47
103
13
69
232
9
26
Adjusted Net Income from Continuing operations
$ 47
$ 64
$ 61
$ 58
$ 230
$ 32
$ 30
$ 37
$ 41
$ 140
$ 14
$ 27
Dividend Paid
2
3
2
3
10
2
3
2
3
10
2
3
Adjusted Net Income from Continuing Operations Available to Common Shareholders
$ 45
$ 61
$ 59
$ 55
$ 220
$ 30
$ 27
$ 35
$ 38
$ 130
$ 12
$ 24
Adjusted Non-GAAP weighted average shares outstanding
208,009
208,889
209,744
210,628
209,634
210,754
211,317
211,135
213,296
211,475
211,371
210,541
Adjusted Non-GAAP Diluted EPS from Continuing operations
$ 0.22
0.29
0.28
0.26
1.05
$ 0.14
0.13
0.16
0.18
0.62
0.05
0.12
Non-GAAP 606 and Divestitures A
All numbers for 2018 and 2019 adjusted to remove divestitures.
Back
Non-GAAP Reconcilliations: Adjusted Revenue, Adjusted Operating Income/Margin and Adjusted EBITDA/Margin
($ in millions)
Q1 2018
Q2 2018
Q3 2018
Q4 2018
FY 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
FY 2019
Q1 2020
Q2 2020
Reconciliation to Adjusted Revenue
Revenue
$ 1,420
$ 1,387
$ 1,304
$ 1,282
$ 5,393
$ 1,158
$ 1,112
$ 1,098
$ 1,099
$ 4,467
$ 1,051
$ 1,016
Adjustments:
Divestitures
(248)
(238)
(162)
(104)
(752)
(36)
-
-
-
(36)
-
-
Adjusted Revenue
$ 1,172
$ 1,149
$ 1,142
$ 1,178
$ 4,641
$ 1,122
$ 1,112
$ 1,098
$ 1,099
$ 4,431
$ 1,051
$ 1,016
Foreign currency impact
-
-
-
-
-
9
7
4
4
24
4
4
Revenue at Constant Currency
$ 1,172
$ 1,149
$ 1,142
$ 1,178
$ 4,641
$ 1,131
$ 1,119
$ 1,102
$ 1,103
$ 4,455
$ 1,055
$ 1,020
Income (Loss) from Continuing Operations
$ (50)
$ 11
$ (237)
$ (140)
$ (416)
$ (308)
$ (1,029)
$ (16)
$ (581)
$ (1,934)
$ (49)
$ (51)
Adjustments:
Amortization of acquired intangible assets
61
60
60
61
242
62
61
61
62
246
60
60
Restructuring and related costs
20
17
31
13
81
16
26
8
21
71
7
29
Interest expense
33
37
22
20
112
20
20
20
18
78
17
15
(Gain) loss on extinguishment of debt
-
-
108
-
108
-
-
-
-
-
-
-
Goodwill impairment
-
-
-
-
-
284
1,067
-
601
1,952
-
-
(Gain) loss on divestitures and transaction costs
15
(60)
54
33
42
14
2
3
6
25
4
2
Litigation costs (recoveries), net
31
4
78
114
227
12
1
2
2
17
6
14
Separation costs
-
-
-
-
-
-
-
-
-
-
-
-
Other (income) expenses, net
(1)
(2)
4
4
5
(1)
1
(8)
(2)
(10)
2
(1)
Income tax expense (benefit)
(4)
43
(15)
(3)
21
(30)
(90)
2
(54)
(172)
(2)
(13)
Operating Income
$ 105
$ 110
$ 105
$ 102
$ 422
$ 69
$ 59
$ 72
$ 73
$ 273
$ 45
$ 55
Operating Income Margin
7.4%
7.9%
8.1%
8.0%
7.8%
6.0%
5.3%
6.6%
6.6%
6.1%
4.3%
5.4%
Operating Income
$ 105
$ 110
$ 105
$ 102
$ 422
$ 69
$ 59
$ 72
$ 73
$ 273
$ 45
$ 55
Other adjustments
-
-
-
-
-
-
4
-
-
4
-
-
NY MMIS/HE charge (credit)
-
(1)
(1)
(1)
(3)
-
-
-
1
1
-
-
CA MMIS charge (credit)
-
-
-
-
-
-
-
-
-
-
(7)
-
Operating Income Before Adjustments for ASC 606 & Divestitures
105
109
104
101
419
69
63
72
74
278
38
55
Divestitures
(39)
(41)
(15)
(3)
(98)
(1)
-
-
-
(1)
-
-
Adjusted Operating Income
$ 66
$ 68
$ 89
$ 98
$ 321
$ 68
$ 63
$ 72
$ 74
$ 277
$ 38
$ 55
Adjusted Operating Income Margin
5.6%
5.9%
7.8%
8.3%
6.9%
6.1%
5.7%
6.6%
6.7%
6.3%
3.6%
5.4%
Back
Non-GAAP Reconcilliations: Adjusted EBITDA
($ in millions)
Q1 2018
Q2 2018
Q3 2018
Q4 2018
FY 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
FY 2019
Q1 2020
Q2 2020
Reconciliation to Adjusted Revenue
Revenue
$ 1,420
$ 1,387
$ 1,304
$ 1,282
$ 5,393
$ 1,158
$ 1,112
$ 1,098
$ 1,099
$ 4,467
$ 1,051
$ 1,016
Adjustments:
Divestitures
(248)
(238)
(162)
(104)
(752)
(36)
-
-
-
(36)
-
-
Adjusted Revenue
$ 1,172
$ 1,149
$ 1,142
$ 1,178
$ 4,641
$ 1,122
$ 1,112
$ 1,098
$ 1,099
$ 4,431
$ 1,051
$ 1,016
Reconcilation to Adjusted EBITDA
Income (Loss) from Continuing Operations
$ (50)
$ 11
$ (237)
$ (140)
$ (416)
$ (308)
$ (1,029)
$ (16)
$ (581)
$ (1,934)
$ (49)
$ (51)
Adjustments:
Interest expense
33
37
22
20
112
20
20
20
18
78
17
15
Income tax expense (benefit)
(4)
43
(15)
(3)
21
(30)
(90)
2
(54)
(172)
(2)
(13)
Depreciation and amortization
116
116
113
115
460
115
112
115
117
459
117
115
Contract inducement amortization
1
1
-
1
3
1
-
1
1
3
1
-
Restructuring and related costs
20
17
31
13
81
16
26
8
21
71
7
29
(Gain) loss on extinguishment of debt
-
-
108
-
108
-
-
-
-
-
-
-
Goodwill impairment
-
-
-
-
-
284
1,067
-
601
1,952
-
-
(Gain) loss on divestitures and transaction costs
15
(60)
54
33
42
14
2
3
6
25
4
2
Litigation costs (recoveries), net
31
4
78
114
227
12
1
2
2
17
6
14
Separation costs
-
-
-
-
-
-
-
-
-
-
-
-
Other (income) expenses, net
(1)
(2)
4
4
5
(1)
1
(8)
(2)
(10)
2
(1)
Other adjustments
-
-
-
-
-
-
4
-
-
4
-
-
NY MMIS/HE charge (credit)
-
(1)
(1)
(1)
(3)
-
-
-
1
1
-
-
CA MMIS charge (credit)
-
-
-
-
-
-
-
-
-
-
(7)
-
Divestitures
(39)
(41)
(15)
(3)
(98)
(1)
-
-
-
(1)
-
-
Divestitures depreciation and amortization
(2)
(2)
-
(3)
(7)
-
-
-
-
-
-
-
Adjusted EBITDA
$ 120
$ 123
$ 142
$ 150
$ 535
$ 122
$ 114
$ 127
$ 130
$ 493
$ 96
$ 110
Adjusted EBITDA Margin
10.2%
10.7%
12.4%
12.7%
11.5%
10.9%
10.3%
11.6%
11.8%
11.1%
9.1%
10.8%
Balance Sheet
Back
Balance Sheet
($ in millions)
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Assets
Cash and cash equivalents
$ 553
$ 993
$ 586
$ 756
$ 520
$ 276
$ 228
$ 496
$ 395
$ 428
Accounts receivable, net
1,026
930
951
782
820
824
840
652
690
693
Assets held for sale
659
316
35
15
-
-
-
-
-
-
Contract assets
163
193
191
177
197
192
165
155
169
160
Other current assets
219
229
230
234
294
315
313
283
318
287
Total current assets
2,620
2,661
1,993
1,964
1,831
1,607
1,546
1,586
1,572
1,568
Land, buildings and equipment, net
260
276
297
328
336
333
331
342
321
309
Operating lease right-of-use assets
-
-
-
-
338
317
290
271
265
255
Intangible assets, net
831
771
711
651
627
566
487
426
366
306
Goodwill
3,457
3,424
3,417
3,408
3,171
2,105
2,090
1,502
1,486
1,491
Other long-term assets
343
304
312
329
360
375
370
387
384
397
Total Assets
$ 7,511
$ 7,436
$ 6,730
$ 6,680
$ 6,663
$ 5,303
$ 5,114
$ 4,514
$ 4,394
$ 4,326
Liabilities and Equity
Current portion of long-term debt
$ 81
$ 43
$ 49
$ 55
$ 53
$ 52
$ 50
$ 50
$ 60
$ 68
Accounts payable
141
146
197
230
313
161
145
198
168
170
Accrued compensation and benefits costs
300
309
252
193
148
165
140
174
151
182
Unearned income
142
129
119
112
103
92
95
108
109
106
Liabilities held for sale
173
119
21
40
-
-
-
-
-
-
Other current liabilities
537
567
613
567
817
747
693
647
535
496
Total current liabilities
1,374
1,313
1,251
1,197
1,434
1,217
1,123
1,177
1,023
1,022
Long-term debt
1,972
2,001
1,528
1,512
1,496
1,488
1,468
1,464
1,596
1,581
Deferred taxes
382
346
320
327
283
186
181
111
108
93
Operating lease liabilities
-
-
-
-
282
264
245
229
224
218
Other long-term liabilities
131
135
130
280
99
105
87
91
81
95
Total Liabilities
3,859
3,795
3,229
3,316
3,594
3,260
3,104
3,072
3,032
3,009
Series A convertible preferred stock
142
142
142
142
142
142
142
142
142
142
Common stock
2
2
2
2
2
2
2
2
2
2
Additional paid-in capital
3,853
3,865
3,871
3,878
3,879
3,886
3,886
3,890
3,891
3,896
Retained earnings (deficit)
136
144
(90)
(233)
(551)
(1,583)
(1,601)
(2,185)
(2,236)
(2,290)
Accumulated other comprehensive loss
(481)
(512)
(424)
(425)
(403)
(404)
(419)
(407)
(437)
(433)
Total Equity
3,510
3,499
3,359
3,222
2,927
1,901
1,868
1,300
1,220
1,175
Total Liabilities and Equity
$ 7,511
$ 7,436
$ 6,730
$ 6,680
$ 6,663
$ 5,303
$ 5,114
$ 4,514
$ 4,394
$ 4,326
-
-
-
-
-
-
-
-
-
-
BS Summary
Back
Balance Sheet Summary
($ in millions)
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Cash and cash equivalents
$ 553
$ 993
$ 586
$ 756
$ 520
$ 276
$ 228
$ 496
$ 395
$ 428
Accounts receivable, net
1,026
930
951
782
820
824
840
652
690
693
Accounts payable and Other current liabilities
678
713
810
797
1,130
908
838
845
703
666
Accrued compensation and benefits costs
300
309
252
193
148
165
140
174
151
182
Unearned income
142
129
119
112
103
92
95
108
109
106
Total Debt
$ 2,053
$ 2,044
$ 1,577
$ 1,567
$ 1,549
$ 1,540
$ 1,518
$ 1,514
$ 1,656
$ 1,649
Term Loan A
728
709
711
705
691
686
667
664
652
648
Term Loan B
840
837
835
833
831
829
827
824
822
820
Bonds
510
510
34
34
34
34
34
34
34
34
Revolver
-
-
-
-
-
-
-
-
150
150
Capital Leases
28
36
30
26
23
19
17
17
20
19
Debt Issuance Costs
(53)
(48)
(33)
(31)
(30)
(28)
(27)
(25)
(22)
(22)
Cash Flows
Back
Cash Flow
($ in millions)
Q1 2018
Q2 2018
Q3 2018
Q4 2018
FY 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
FY 2019
Q1 2020
Q2 2020
Cash Flows from Operating Activities:
Net income (loss)
$ (50)
$ 11
$ (237)
$ (140)
$ (416)
$ (308)
$ (1,029)
$ (16)
$ (581)
$ (1,934)
$ (49)
$ (51)
Depreciation and amortization
116
116
113
115
460
115
112
115
117
459
117
115
Contract inducement amortization
1
1
-
1
3
1
-
1
1
3
1
-
Goodwill impairment
-
-
-
-
-
284
1,067
-
601
1,952
-
-
Deferred income taxes
(8)
(39)
(43)
15
(75)
(45)
(95)
(8)
(72)
(220)
(9)
(20)
(Gain) loss from investments
(1)
-
-
(1)
(2)
(1)
-
(2)
(1)
(4)
(1)
(1)
Amortization of debt financing costs
2
6
1
2
11
2
1
2
2
7
2
1
(Gain) loss on extinguishment of debt
-
-
108
-
108
-
-
-
-
-
-
-
(Gain) loss on divestitures and transaction costs
15
(60)
54
33
42
14
2
3
6
25
4
2
Stock-based compensation
7
12
11
8
38
7
7
5
5
24
4
5
Allowance for doubtful accounts
-
-
-
-
-
-
-
-
3
3
-
-
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable
(75)
89
(54)
173
133
(60)
(4)
(20)
191
-
107
(42)
(2)
(Increase) decrease in other current and long-term assets
(49)
(46)
(21)
5
(111)
(112)
33
45
20
(14)
(42)
1
Increase (decrease) in accounts payable and accrued compensation
(40)
15
(11)
(20)
(56)
58
(140)
(46)
96
(32)
(55)
31
Increase (decrease) in restructuring liabilities
7
(3)
12
(8)
8
4
4
(4)
6
-
10
(7)
13
Increase (decrease) in other current and long-term liabilities
43
(54)
49
123
161
(12)
(130)
(57)
(58)
(257)
(131)
(21)
Net change in income tax assets and liabilities
(5)
53
(12)
(53)
(17)
5
(14)
-
12
3
16
1
Other operating, net
(1)
(3)
-
-
(4)
(1)
1
-
-
-
-
-
Net cash provided by (used in) operating activities
(38)
98
(30)
253
283
(49)
(185)
18
348
132
(192)
74
Cash Flows from Investing Activities:
Cost of additions to land, buildings and equipment
(33)
(43)
(43)
(60)
(179)
(53)
(23)
(33)
(39)
(148)
(11)
(19)
Proceeds from sale of land, buildings and equipment
-
12
-
1
13
1
1
-
-
2
-
-
Cost of additions to internal use software
(6)
(8)
(17)
(14)
(45)
(17)
(20)
(12)
(18)
(67)
(13)
(17)
Payments for acquisitions, net of cash acquired
-
-
-
-
-
(90)
-
-
-
(90)
-
-
Proceeds from divestitures and sale of assets, net of cash
-
400
272
3
675
-
-
-
-
-
-
-
Proceeds (payments) from divestitures, including cash sold
-
-
-
-
-
(9)
1
1
-
(7)
1
1
Proceeds from investments
-
-
-
1
1
-
-
-
-
-
-
-
Other investing, net
-
-
-
(5)
(5)
-
-
-
-
-
-
-
Net cash provided by (used in) investing activities
(39)
361
212
(74)
460
(168)
(41)
(44)
(57)
(310)
(23)
(35)
Cash Flows from Financing Activities:
Proceeds on long-term debt
-
-
-
-
-
-
-
-
-
-
150
-
Debt issuance fee payments
-
(3)
-
-
(3)
-
-
-
-
-
-
-
Payments on debt
(21)
(8)
(484)
(6)
(519)
(14)
(14)
(14)
(12)
(54)
(15)
(13)
Premium on debt redemption
-
-
(95)
-
(95)
-
-
-
-
-
-
-
Net payments to former parent company
-
-
-
-
-
-
-
-
-
-
-
-
-
Taxes paid for settlement of stock based compensation
(4)
1
(6)
(1)
(10)
(6)
-
(5)
(10)
(21)
(3)
-
Dividends paid on preferred stock
(2)
(3)
(2)
(3)
(10)
(2)
(3)
(2)
(3)
(10)
(2)
(3)
Other financing
-
-
-
-
-
-
-
-
-
-
-
-
Net cash provided by (used in) financing activities
(27)
(13)
(587)
(10)
(637)
(22)
(17)
(21)
(25)
(85)
130
(16)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
-
(6)
(3)
1
(8)
2
-
(2)
3
3
(7)
1
Increase (decrease) in cash, cash equivalents and restricted cash
(104)
440
(408)
170
98
(237)
(243)
(49)
269
(260)
(92)
24
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
667
563
1,003
595
667
765
528
285
236
765
505
413
Cash, Cash Equivalents and Restricted Cash at End of period
$ 563
$ 1,003
$ 595
$ 765
$ 765
$ 528
$ 285
$ 236
$ 505
$ 505
$ 413
$ 437
Operating Cash Flow
$ (38)
$ 98
$ (30)
$ 253
$ 283
$ (49)
$ (185)
$ 18
$ 348
$ 132
$ (192)
$ 74
Cost of additions to land, buildings and equipment
(33)
(43)
(43)
(60)
(179)
(53)
(23)
(33)
(39)
(148)
(11)
(19)
Proceeds from sales of land, buildings and equipment
-
12
-
1
13
1
1
-
-
2
-
-
Cost of additions to internal use software
(6)
(8)
(17)
(14)
(45)
(17)
(20)
(12)
(18)
(67)
(13)
(17)
Tax payment related to divestitures
-
10
30
50
90
2
7
(1)
1
9
-
-
Free Cash Flow
$ (77)
$ 69
$ (60)
$ 230
$ 162
$ (116)
$ (220)
$ (28)
$ 292
$ (72)
$ (216)
$ 38
Transaction costs
1
3
15
14
33
3
9
1
1
14
1
2
Transaction costs tax benefit
-
-
-
(5)
(5)
-
(3)
-
3
-
-
-
Debt buyback tax benefit
-
-
-
(26)
(26)
-
-
-
-
-
-
-
Texas litigation payments
-
-
-
-
-
20
98
-
-
118
118
-
Deferred compensation tax benefit
-
-
-
(31)
(31)
-
-
-
-
-
-
-
Deferred compensation payments and adjustments
7
2
13
77
99
-
-
-
-
-
-
-
Adjusted Free Cash Flow
$ (69)
$ 74
$ (32)
$ 259
$ 232
$ (93)
$ (116)
$ (27)
$ 296
$ 60
$ (97)
$ 40
AEBITDA to AFCF
Back
Adjusted EBITDA to Adjusted Free Cash Flow
($ in millions)
Q1 2018
Q2 2018
Q3 2018
Q4 2018
FY 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
FY 2019
Q1 2020
Q2 2020
Adjusted EBITDA
$ 120
$ 123
$ 142
$ 150
$ 535
$ 122
$ 114
$ 127
$ 130
$ 493
$ 96
$ 110
Less cash tax (paid) received
(13)
(24)
(39)
(32)
(108)
(11)
(18)
(10)
(7)
(46)
9
(2)
Less cash interest
(16)
(46)
(19)
(19)
(100)
(17)
(18)
(17)
(17)
(69)
(14)
(14)
less cash restructuring
(12)
(20)
(20)
(19)
(71)
(11)
(21)
(12)
(13)
(57)
(12)
(14)
Net working capital and other adjustments
(117)
65
(94)
173
27
(132)
(242)
(70)
255
(189)
(271)
(6)
Operating Cash Flow
(38)
98
(30)
253
283
(49)
(185)
18
348
132
(192)
74
Less Capex
(39)
(51)
(60)
(74)
(224)
(70)
(43)
(45)
(57)
(215)
(24)
(36)
Tax payment related to divestitures
-
10
30
50
90
2
7
(1)
1
9
-
-
Proceeds from sale of land, buildings and equipment
-
12
-
1
13
1
1
-
-
2
-
-
Free Cash Flow
(77)
69
(60)
230
162
(116)
(220)
(28)
292
(72)
(216)
38
Texas litigation payments
-
-
-
-
-
20
98
-
-
118
118
-
Other one-time charges (M&A, etc.)
8
5
28
29
70
3
6
1
4
14
1
2
Adjusted Free Cash Flow
(69)
74
(32)
259
232
(93)
(116)
(27)
296
60
(97)
40
Operational Data
Back
Operational Metrics
(TCV $ in millions)
Q1 2018
Q2 2018
Q3 2018
Q4 2018
FY 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
FY 2019
Q1 2020
Q2 2020
Excluding Divestitures Impact:
Total Contract Value (TCV)
$ 1,293
$ 1,887
$ 738
$ 1,527
$ 5,445
$ 952
$ 813
$ 746
$ 715
$ 3,226
$ 839
$ 1,535
New Business
367
346
264
621
1,598
225
328
234
209
996
324
623
Renewals
926
1,541
474
906
3,847
727
485
512
506
2,230
515
912
Annual Recurring Revenue Signings; New Business
$ 81
$ 79
$ 65
$ 140
$ 365
$ 52
$ 84
$ 71
$ 74
$ 281
$ 57
$ 105
Non-Recurring Revenue Signings; New Business
$ 53
$ 61
$ 63
$ 57
$ 234
$ 32
$ 49
$ 43
$ 42
$ 166
$ 44
$ 76
Employees (Approx.: Quarter-end)
Commercial Industries
47,600
47,300
49,600
48,400
48,400
46,100
44,900
48,600
48,400
48,400
46,400
44,900
Government Services
6,300
6,200
6,100
6,200
6,200
6,200
6,100
6,300
6,100
6,100
6,300
6,000
Transportation
3,500
3,500
3,500
3,500
3,500
3,500
3,600
3,500
3,600
3,600
3,600
3,400
Corporate
9,400
9,900
9,900
10,100
10,100
10,200
10,200
9,900
9,400
9,400
8,800
8,500
Other
19,000
17,600
14,900
13,800
13,800
1,000
100
100
0
0
0
0
Total
85,800
84,500
84,000
82,000
82,000
67,000
64,900
68,400
67,500
67,500
65,100
62,800
% of Labor in High Cost Country
55 %
53 %
50 %
49 %
49 %
48 %
49 %
51 %
51 %
51 %
52 %
53 %
Client Concentration (% of total)
Top 5 Clients
14.8 %
15.0 %
16.8 %
18.6 %
17.4 %
17.2 %
16.6 %
17.6 %
17.1 %
17.2 %
16.6 %
17.0 %
Top 20 Clients
32.3 %
32.6 %
33.7 %
37.6 %
36.1 %
34.2 %
33.5 %
34.3 %
34.3 %
34.1 %
34.5 %
33.5 %
Top 50 Clients
49.6 %
49.5 %
52.9 %
58.7 %
56.7 %
53.8 %
53.1 %
54.1 %
54.9 %
54.1 %
55.2 %
52.9 %
Real Estate Sqf (thousands)
Including Divested Assets
9,533
9,164
8,339
8,227
8,227
7,256
7,163
6,796
6,602
6,602
6,491
6,162
Excluding Divested Assets
8,496
8,127
7,302
7,190
7,190
7,256
7,163
6,796
6,602
6,602
6,491
6,162
* Note: Q1 2018 reflects central consolidation of IT related resources previously included in segments now within corporate.
**Other segment contains employees associated with divested businesses
NOTE: Q4 2018 and FY 2018 Client Concentration excludes divested customer care business
Segment depreciation and amortization (including contract inducements)
56
57
53
55
221
54
51
55
56
216
58
55
Adjustments:
Other adjustments
-
-
-
-
-
-
4
-
-
4
-
-
NY MMIS/HE charge (credit)
-
(1)
(1)
(1)
(3)
-
-
-
1
1
-
-
CA MMIS charge (credit)
-
-
-
-
-
-
-
-
-
-
(7)
-
Total Adjusted EBITDA
$ 161
$ 166
$ 157
$ 156
$ 640
$ 123
$ 114
$ 127
$ 130
$ 494
$ 96
$ 110
11.3 %
12.0 %
12.0 %
12.2 %
11.9 %
10.6 %
10.3 %
11.6 %
11.8 %
11.1 %
9.1 %
10.8 %
Segment EBITDA (%)
Commercial Industries
21.1 %
23.2 %
24.2 %
25.4 %
23.5 %
22.7 %
22.3 %
22.1 %
24.0 %
22.8 %
20.1 %
18.5 %
Government Services
34.3 %
31.7 %
33.1 %
34.4 %
33.4 %
27.4 %
31.3 %
31.0 %
36.1 %
31.3 %
34.1 %
36.3 %
Transportation
19.9 %
19.4 %
21.2 %
21.2 %
20.4 %
15.2 %
21.1 %
22.4 %
18.7 %
19.4 %
16.9 %
23.6 %
Other
15.3 %
16.7 %
6.2 %
- %
11.7 %
2.7 %
- %
- %
- %
2.7 %
- %
- %
Corporate
- %
- %
- %
- %
- %
- %
- %
- %
- %
- %
- %
- %
Total
11.3 %
12.0 %
12.0 %
12.2 %
11.9 %
10.6 %
10.3 %
11.6 %
11.8 %
11.1 %
9.1 %
10.8 %
Total Adjusted EBITDA
11.3 %
12.0 %
12.0 %
12.2 %
11.9 %
10.6 %
10.3 %
11.6 %
11.8 %
11.1 %
9.1 %
10.8 %
Segments 606 and Divestitures A
All numbers for 2018 and 2019 adjusted to remove divestitures.
Back
Segment Summary
($ in millions)
Q1 2018
Q2 2018
Q3 2018
Q4 2018
FY 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
FY 2019
Q1 2020
Q2 2020
Commercial Industries:
Segment Revenue
$ 654
$ 626
$ 620
$ 650
$ 2,550
$ 612
$ 592
$ 578
$ 605
$ 2,387
$ 572
$ 520
Total Adjusted Segment Revenue
$ 654
$ 626
$ 620
$ 650
$ 2,550
$ 612
$ 592
$ 578
$ 605
$ 2,387
$ 572
$ 520
Segment Profit
$ 110
$ 120
$ 128
$ 143
$ 501
$ 117
$ 111
$ 104
$ 118
$ 450
$ 90
$ 72
Segment depreciation and amortization (including contract inducements)
28
25
22
22
97
22
21
24
27
94
25
24
Adjusted Segment EBITDA
$ 138
$ 145
$ 150
$ 165
$ 598
$ 139
$ 132
$ 128
$ 145
$ 544
$ 115
$ 96
Adjusted Segment EBITDA Margin
21.1 %
23.2 %
24.2 %
25.4 %
23.5 %
22.7 %
22.3 %
22.1 %
24.0 %
22.8 %
20.1 %
18.5 %
Government Services:
Segment Revenue
$ 335
$ 341
$ 338
$ 337
$ 1,351
$ 325
$ 326
$ 319
$ 291
$ 1,261
$ 290
$ 331
Total Adjusted Segment Revenue
$ 335
$ 341
$ 338
$ 337
$ 1,351
$ 325
$ 326
$ 319
$ 291
$ 1,261
$ 290
$ 331
Segment Profit
$ 108
$ 100
$ 106
$ 110
$ 424
$ 80
$ 95
$ 93
$ 98
$ 366
$ 93
$ 115
Segment depreciation and amortization (including contract inducements)
7
9
7
7
30
9
7
6
6
28
6
5
NY MMIS/HE charge (credit)
-
(1)
(1)
(1)
(3)
-
-
-
1
1
-
-
Adjusted Segment EBITDA
$ 115
$ 108
$ 112
$ 116
$ 451
$ 89
$ 102
$ 99
$ 105
$ 395
$ 99
$ 120
Adjusted Segment EBITDA Margin
34.3 %
31.7 %
33.1 %
34.4 %
33.4 %
27.4 %
31.3 %
31.0 %
36.1 %
31.3 %
34.1 %
36.3 %
Transportation:
Segment Revenue
$ 176
$ 180
$ 184
$ 189
$ 729
$ 184
$ 194
$ 201
$ 203
$ 782
$ 189
$ 165
Total Adjusted Segment Revenue
$ 176
$ 180
$ 184
$ 189
$ 729
$ 184
$ 194
$ 201
$ 203
$ 782
$ 189
$ 165
Segment Profit
$ 27
$ 25
$ 30
$ 31
$ 113
$ 19
$ 29
$ 36
$ 31
$ 115
$ 23
$ 31
Segment depreciation and amortization (including contract inducements)
8
10
9
9
36
9
8
9
7
33
9
8
Other adjustments
-
-
-
-
-
-
4
-
-
4
-
-
Adjusted Segment EBITDA
$ 35
$ 35
$ 39
$ 40
$ 149
$ 28
$ 41
$ 45
$ 38
$ 152
$ 32
$ 39
Adjusted Segment EBITDA Margin
19.9 %
19.4 %
21.2 %
21.2 %
20.4 %
15.2 %
21.1 %
22.4 %
18.7 %
19.4 %
16.9 %
23.6 %
Other Segment:
Segment Revenue
$ 255
$ 240
$ 162
$ 106
$ 763
$ 37
$ -
$ -
$ -
$ 37
$ -
$ -
Divestitures
(248)
(238)
(162)
(104)
(752)
(36)
-
-
-
(36)
-
-
Total Adjusted Segment Revenue
$ 7
$ 2
$ -
$ 2
$ 11
$ 1
$ -
$ -
$ -
$ 1
$ -
$ -
Segment Profit
$ 36
$ 37
$ 9
$ (3)
$ 79
$ 1
$ -
$ -
$ -
$ 1
$ 4
$ (1)
Segment depreciation and amortization (including contract inducements)
3
3
1
3
10
-
-
-
-
-
-
-
CA MMIS charge (credit)
-
-
-
-
-
-
-
-
-
-
(7)
-
Segment EBITDA Before Adjustments for 2018 Divestitures
39
40
10
-
89
1
-
-
-
1
(3)
(1)
Divestitures
(39)
(41)
(15)
(3)
(98)
(1)
-
-
-
(1)
-
-
Divestitures depreciation and amortization
(2)
(2)
-
(3)
(7)
-
-
-
-
-
-
-
Adjusted Segment EBITDA
$ (2)
$ (3)
$ (5)
$ (6)
$ (16)
$ -
$ -
$ -
$ -
$ -
$ (3)
$ (1)
Adjusted Segment EBITDA Margin
(28.6)%
(150.0)%
- %
(300.0)%
(145.5)%
- %
- %
- %
- %
- %
- %
- %
Shared IT / Infrastructure & Corporate Costs (Corporate):
Corporate Revenue
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Total Adjusted Corporate Revenue
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
.
Corporate Profit
(176)
(172)
(168)
(179)
$ (695)
(148)
(176)
(161)
(174)
$ (659)
(165)
(162)
Corporate Depreciation and Amortization
10
10
14
14
48
14
15
16
16
61
18
18
Adjusted Corporate EBITDA
$ (166)
$ (162)
$ (154)
$ (165)
$ (647)
$ (134)
$ (161)
$ (145)
$ (158)
$ (598)
$ (147)
$ (144)
Total Adjusted EBITDA
$ 120
$ 123
$ 142
$ 150
$ 535
$ 122
$ 114
$ 127
$ 130
$ 493
$ 96
$ 110
Total Adjusted EBITDA
10.2 %
10.7 %
12.4 %
12.7 %
11.5 %
10.9 %
10.3 %
11.6 %
11.8 %
11.1 %
9.1 %
10.8 %
Horizontal Revenue
All numbers for 2018 and 2019 adjusted to remove divestitures.
Back
Horizontal Revenue
($ in millions)
Q1 2018
Q2 2018
Q3 2018
Q4 2018
FY 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
FY 2019
Q1 2020
Q2 2020
Consolidated Summary
$ 1,420
$ 1,387
$ 1,304
$ 1,282
$ 5,393
$ 1,158
$ 1,112
$ 1,098
$ 1,099
$ 4,467
$ 1,051
$ 1,016
Commercial Industries
654
626
620
650
2,550
612
592
578
605
2,387
572
520
Government Services
335
341
338
337
1,351
325
326
319
291
1,261
290
331
Transportation
176
180
184
189
729
184
194
201
203
782
189
165
Other Segment
255
240
162
106
763
37
-
-
-
37
-
-
Commercial Industries
$ 654
$ 626
$ 620
$ 650
$ 2,550
$ 612
$ 592
$ 578
$ 605
$ 2,387
$ 572
$ 520
Customer experience management
178
165
177
190
710
171
158
161
179
669
168
157
Business operations solutions
191
180
173
172
716
166
157
153
156
632
153
133
Commercial healthcare solutions
115
109
108
113
445
122
123
121
116
482
113
103
Human resource services
170
172
162
175
679
153
154
143
154
604
138
127
Government Services
$ 335
$ 341
$ 338
$ 337
$ 1,351
$ 325
$ 326
$ 319
$ 291
$ 1,261
$ 290
$ 331
Government healthcare solutions
177
181
181
188
727
177
175
171
151
674
152
154
Government services solutions
158
160
157
149
624
148
151
148
140
587
138
177
Transportation
$ 176
$ 180
$ 184
$ 189
$ 729
$ 184
$ 194
$ 201
$ 203
$ 782
$ 189
$ 165
Roadway charging & management services
72
71
79
78
300
79
81
83
84
327
78
71
Transit solutions
54
57
54
61
226
54
62
69
70
255
67
61
Curbside management solutions
27
28
27
27
109
27
28
27
25
107
22
14
Public safety solutions
19
20
20
20
79
21
20
20
22
83
20
17
Commercial vehicles
4
4
4
3
15
3
3
2
2
10
2
2
Other Segment
$ 255
$ 240
$ 162
$ 106
$ 763
$ 37
$ -
$ -
$ -
$ 37
$ -
$ -
Divestitures / ASC 606
248
238
162
104
752
36
-
-
-
36
-
-
Education
7
2
-
2
11
1
-
-
-
1
-
-
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Disclaimer
Conduent Inc. published this content on 06 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2020 07:08:14 UTC
Conduent Incorporated is a technology-led business process solutions company. Its segments include It operates through three segments: Commercial, Government, and Transportation. The Commercial segment provides business process services and customized solutions to clients in a variety of commercial industries. Its solutions and services include Customer Experience Management (CXM), Business Operations Solutions (BOS), Healthcare Claims and Administration Solutions and Human Capital Solutions. The Government segment include government healthcare solutions and government service solutions. Its Government Healthcare Solutions provide mission-critical program administration solutions for government healthcare programs with a range of solutions such as Medicaid management, provider services, and Medicaid business intelligence. The Transportation segment includes road usage charging and management solutions, transit solutions, curbside management solutions, and public safety solutions.