Convergys Reports Third Quarter Results

Convergys Corporation (NYSE: CVG), a global leader in customer management, today announced its financial results for the third quarter of 2016.

Third Quarter Summary
  • Revenue of $741 million, flat as reported and up 1 percent on a constant currency basis compared with prior year, including a 3 percent contribution from the buw acquisition;
  • GAAP operating income was $49 million, up 3 percent compared with prior year; adjusted operating income was $61 million, down 2 percent compared with prior year;
  • GAAP net income from continuing operations was $38 million, down 35 percent compared with prior year; adjusted net income from continuing operations was $48 million, up 3 percent compared with prior year;
  • Adjusted EBITDA of $90 million, consistent with prior year;
  • GAAP EPS from continuing operations was $0.36, compared with $0.55 in prior year; adjusted EPS from continuing operations was $0.46, compared with $0.45 in prior year;
  • Operating cash flow of $80 million, adjusted free cash flow of $54 million;
  • $25 million capital returned to shareholders via share repurchase and dividend;
  • Revised 2016 guidance includes flat constant currency revenue growth with adjusted EPS growth of 4 percent to 5 percent.

"We generated solid EPS and strong free cash flow, and experienced another quarter of strong new business signings," said Andrea Ayers, President and CEO. "While revenue and profitability came in below our expectations due to slower than anticipated seasonal ramps and continued volatility in the communications industry, we are encouraged by several contract wins with existing and new clients across the vertical markets we serve. Our record of operational excellence and progress penetrating high-growth industries give us confidence in our ability to grow, diversify our client base, and expand margins over time."

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