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Convergys Reports Third Quarter Results

Stocks in this article: CVG

Convergys Corporation (NYSE: CVG), a global leader in relationship management, today announced its financial results for the third quarter of 2012.

Third Quarter Summary

  • Total revenue from continuing operations of $508 million, up three percent compared with prior year
  • EBITDA from continuing operations of $61 million, up eight percent compared with adjusted EBITDA in the prior year
  • EPS from continuing operations of $0.26 compared with adjusted EPS from continuing operations of $0.19 in the prior year
  • 3.7 million Convergys shares repurchased in the third quarter at average price of $15.56 per share
  • $729 million cash and short term investments on balance sheet at quarter end
  • Raised full-year earnings guidance

“We delivered our sixth consecutive quarter of revenue growth and profit improvement,” said Andrea Ayers, incoming president and CEO. “As a well capitalized market-leader in customer management, we are in a unique position to invest in what matters most to our clients. We are executing on our growth strategy and have raised our earnings guidance for the full year.”

Incoming executive chairman Jeff Fox said, “I congratulate Andrea on her new role as CEO, and continue to be encouraged by the strong performance of our team. Based on our confidence in the business and commitment to disciplined capital deployment, we paid a five-cent dividend and repurchased $57 million of our stock in the third quarter.”

Third Quarter Results – Continuing Operations

Revenue – Total revenue from continuing operations was $508 million, compared with $493 million in the same period last year. Customer Management revenue was $502 million, a two percent increase compared with $491 million in the same period last year.

Operating Income – Operating income from continuing operations was $39 million, a 14 percent increase compared with $34 million adjusted operating income from continuing operations in the same period last year. Prior year GAAP operating income of $28 million included $6 million of Information Management-related costs that did not qualify for presentation as discontinued operations.

Customer Management operating income was $44 million, up 13 percent compared with $39 million in the same period last year. Customer Management operating margin was 8.8 percent, up 90 basis points compared with 7.9 percent in the same period last year.

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