PRGX Global, Inc. Announces First Quarter 2013 Financial Results

Highlights
  • Q1 revenue of $45.1M and Adjusted EBITDA of $4.4M, in line with previously announced ranges
  • Profit Optimization Q1 revenue reflects both sequential and year-over-year growth
  • Recovery Audit Services – Americas Q1 gross margin percentage increased over Q1 2012 despite revenue challenges, reflecting ongoing impact of the Service Delivery Model Redesign program
  • Awaiting results of bid for Centers for Medicare & Medicaid Services (CMS) Medicare Part A/B Recovery Audit Contractor (RAC) Program

ATLANTA, April 29, 2013 (GLOBE NEWSWIRE) -- PRGX Global, Inc. (Nasdaq:PRGX), the world's leading provider of recovery audit services and the pioneer in Profit Discovery™, today announced its unaudited financial results for the first quarter ended March 31, 2013.

"We had a tough quarter. Two of our three growth levers, including the core recovery audit business which is by far the largest part of our revenue, underperformed compared to the same quarter last year. Historically, our portfolio of clients and services has insulated us from volatility within and across our business segments. Q1 2013 represents the rare instance where multiple challenges worked against us. That said, we expect the remainder of the year to improve for our core business and for our profit optimization service line to continue to gain market traction. The financial performance of our healthcare business, which was expected to grow in 2013 under our current RAC Program subcontracts, will be largely dependent on the outcome of the CMS RAC Program rebid and the related transition timelines," said Romil Bahl, president and chief executive officer.

"In our Recovery Audit Services segments, revenue was impacted by delays at key retail clients and in our commercial business. However, we expect the majority of this revenue will not be lost but rather shifted to later in the year. Our Europe/Asia-Pacific (EAP) business is still being affected by the tough macroeconomic environment in Europe that recently put three clients into bankruptcy. Our EAP leadership team has plans in place to both address revenue as well as drive efficiencies by deploying our global service delivery model," continued Bahl.

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PRGX Global (PRGX) Downgraded From Hold to Sell