Form 10-Q - Quarterly report [Sections 13 or 15(d)]
August 08 2024 - 10:59AM
Edgar (US Regulatory)
0001005757Q2false--12-313 YearsP1DP4D30-09-202830-09-2026September 30, 20260001005757csgs:AcquisitionOneMember2024-04-010001005757us-gaap:LicenseAndServiceMember2023-04-012023-06-3000010057572024-01-012024-03-310001005757us-gaap:TreasuryStockCommonMember2024-03-310001005757srt:AsiaPacificMember2024-01-012024-06-300001005757csgs:BroadbandCableSatelliteMember2024-04-012024-06-3000010057572023-04-012023-06-300001005757srt:MaximumMember2024-01-012024-06-300001005757srt:AmericasMember2023-01-012023-06-300001005757us-gaap:LicenseAndServiceMember2023-01-012023-06-300001005757csgs:TimeBasedAwardsMember2024-01-012024-06-300001005757us-gaap:OneTimeTerminationBenefitsMember2023-12-310001005757us-gaap:CommonStockMember2024-06-300001005757csgs:BroadbandCableSatelliteMember2024-01-012024-06-300001005757us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001005757us-gaap:MaintenanceMember2023-01-012023-06-300001005757us-gaap:LicenseAndServiceMember2024-01-012024-06-300001005757us-gaap:CommonStockMember2023-04-012023-06-300001005757us-gaap:RetainedEarningsMember2023-06-300001005757csgs:SECRule10b51PlanMember2024-04-012024-06-300001005757us-gaap:OtherCurrentAssetsMember2024-06-300001005757us-gaap:TreasuryStockCommonMember2024-01-012024-03-310001005757csgs:TwoThousandTwentyOneCreditAgreementMembersrt:MinimumMember2024-01-012024-06-300001005757us-gaap:RetainedEarningsMember2023-04-012023-06-300001005757csgs:StockRepurchaseProgramMember2024-08-010001005757us-gaap:MaintenanceMember2023-04-012023-06-300001005757csgs:OtherMember2023-04-012023-06-300001005757srt:MinimumMember2024-01-012024-06-300001005757csgs:CustomerContractCostsMember2023-04-012023-06-300001005757csgs:AcquiredCustomerContractsMember2023-12-310001005757us-gaap:RetainedEarningsMember2023-12-310001005757us-gaap:AdditionalPaidInCapitalMember2023-06-300001005757csgs:TelecommunicationsMember2023-01-012023-06-300001005757us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-3000010057572024-07-012024-06-300001005757csgs:SoftwareAsAServiceAndRelatedSolutionsMember2024-01-012024-06-300001005757csgs:ComcastCorporationMember2024-06-300001005757us-gaap:EMEAMember2023-01-012023-06-300001005757srt:AsiaPacificMember2023-04-012023-06-300001005757csgs:NewFinancingAgreementMemberus-gaap:OtherCurrentLiabilitiesMember2024-06-300001005757us-gaap:EMEAMember2024-01-012024-06-300001005757us-gaap:AdditionalPaidInCapitalMember2023-03-310001005757us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001005757us-gaap:ComputerSoftwareIntangibleAssetMember2023-12-310001005757csgs:MarketBasedAwardsMember2024-01-012024-06-300001005757csgs:SoftwareAsAServiceAndRelatedSolutionsMember2023-04-012023-06-300001005757csgs:NewFinancingAgreementMemberus-gaap:OtherNoncurrentLiabilitiesMember2024-06-300001005757srt:AsiaPacificMember2024-04-012024-06-300001005757csgs:AcquiredCustomerContractsMember2024-06-300001005757us-gaap:OneTimeTerminationBenefitsMember2024-01-012024-06-300001005757us-gaap:EMEAMember2023-04-012023-06-300001005757us-gaap:RevolvingCreditFacilityMembercsgs:TwoThousandTwentyOneCreditAgreementMember2023-12-3100010057572024-03-310001005757us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001005757csgs:TwoThousandTwentyOneCreditAgreementMembersrt:MaximumMember2024-01-012024-06-300001005757csgs:TwoThousandTwentyThreeSeniorConvertibleNotesMember2024-01-012024-06-3000010057572023-12-310001005757csgs:StockRepurchaseProgramMember2024-01-012024-06-300001005757us-gaap:TreasuryStockCommonMember2024-04-012024-06-300001005757us-gaap:LicenseAndServiceMember2024-04-012024-06-300001005757csgs:IcheckGatewayComLLCMember2024-06-032024-06-030001005757us-gaap:MaintenanceMember2024-04-012024-06-300001005757us-gaap:CommonStockMember2023-01-012023-03-310001005757us-gaap:MaintenanceMember2024-01-012024-06-300001005757csgs:SoftwareAsAServiceAndRelatedSolutionsMember2023-01-012023-06-300001005757us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001005757us-gaap:TreasuryStockCommonMember2023-12-310001005757csgs:TwoThousandTwentyThreeSeniorUnsecuredConvertibleNotesMember2024-01-012024-06-300001005757csgs:NewFinancingAgreementMember2024-06-300001005757csgs:SoftwareAsAServiceAndRelatedSolutionsRevenueMembersrt:MinimumMember2024-01-012024-06-300001005757csgs:CustomerContractCostsMember2024-04-012024-06-3000010057572023-01-012023-03-310001005757csgs:TwoThousandTwentyThreeSeniorConvertibleNotesMember2024-06-3000010057572024-06-3000010057572023-03-310001005757csgs:IcheckGatewayComLLCMember2024-06-300001005757csgs:AcquisitionOneMembercsgs:AcquiredCustomerContractsMember2024-04-010001005757us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001005757csgs:AcquisitionOneMember2024-01-012024-06-300001005757us-gaap:CommonStockMember2024-03-310001005757csgs:OtherMember2024-04-012024-06-300001005757us-gaap:AdditionalPaidInCapitalMember2022-12-310001005757us-gaap:CommonStockMember2023-06-300001005757csgs:ComcastCorporationMember2014-07-310001005757csgs:TwoThousandTwentyOneCreditAgreementMember2024-06-300001005757csgs:BroadbandCableSatelliteMember2023-01-012023-06-300001005757us-gaap:CommonStockMember2022-12-310001005757us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001005757csgs:TwoThousandTwentyThreeSeniorConvertibleNotesMembersrt:MinimumMember2024-01-012024-06-300001005757csgs:CurrentLiabilitiesMember2024-06-300001005757csgs:BidBondMember2024-06-3000010057572024-08-060001005757csgs:DgitSystemsPtyLtdMember2024-01-012024-06-300001005757us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001005757srt:AsiaPacificMember2023-01-012023-06-300001005757us-gaap:BaseRateMembercsgs:TwoThousandTwentyOneCreditAgreementMembersrt:MinimumMember2024-01-012024-06-300001005757us-gaap:RevolvingCreditFacilityMembercsgs:TwoThousandTwentyOneCreditAgreementMember2024-01-012024-06-300001005757srt:AmericasMember2024-04-012024-06-300001005757us-gaap:RetainedEarningsMember2024-03-310001005757csgs:OtherMember2023-01-012023-06-300001005757us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-300001005757csgs:TwoThousandTwentyThreeSeniorUnsecuredConvertibleNotesMember2024-06-300001005757csgs:TerminationBenefitsRelatedToOrganizationalChangesMember2024-01-012024-06-300001005757us-gaap:AdditionalPaidInCapitalMember2023-12-310001005757us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembercsgs:TwoThousandTwentyOneCreditAgreementMembercsgs:TwoThousandTwentyOneTermLoanMember2024-06-300001005757csgs:TwoThousandTwentyThreeSeniorConvertibleNotesMember2023-12-3100010057572014-07-012014-07-310001005757us-gaap:RetainedEarningsMember2024-04-012024-06-300001005757us-gaap:RetainedEarningsMember2023-03-310001005757csgs:IcheckGatewayComLLCMember2024-06-030001005757csgs:TwoThousandTwentyOneCreditAgreementMembercsgs:TwoThousandTwentyOneTermLoanMember2024-06-300001005757us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001005757us-gaap:OtherRestructuringMember2024-01-012024-06-300001005757csgs:BroadbandCableSatelliteMember2023-04-012023-06-3000010057572014-07-310001005757us-gaap:TreasuryStockCommonMember2023-01-012023-03-310001005757csgs:SoftwareAsAServiceAndRelatedSolutionsMember2024-04-012024-06-300001005757us-gaap:OtherRestructuringMember2024-06-3000010057572024-01-012024-06-300001005757us-gaap:EMEAMember2024-04-012024-06-300001005757csgs:TwoThousandTwentyOneCreditAgreementMember2023-12-310001005757srt:AmericasMember2024-01-012024-06-300001005757us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001005757us-gaap:CommonStockMember2023-12-310001005757us-gaap:ComputerSoftwareIntangibleAssetMember2024-06-300001005757csgs:CustomerContractCostsMember2024-01-012024-06-300001005757us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300001005757csgs:TelecommunicationsMember2024-04-012024-06-300001005757csgs:TwoThousandTwentyThreeSeniorUnsecuredConvertibleNotesMember2023-12-310001005757us-gaap:TreasuryStockCommonMember2023-06-300001005757us-gaap:RetainedEarningsMember2024-06-300001005757us-gaap:CommonStockMember2023-03-310001005757us-gaap:RetainedEarningsMember2024-01-012024-03-310001005757us-gaap:CommonStockMembercsgs:TwoThousandTwentyThreeSeniorConvertibleNotesMember2024-01-012024-06-300001005757us-gaap:RevolvingCreditFacilityMembercsgs:TwoThousandTwentyOneCreditAgreementMember2024-06-300001005757us-gaap:RetainedEarningsMember2022-12-310001005757csgs:SoftwareAsAServiceAndRelatedSolutionsRevenueMembersrt:MaximumMember2024-01-012024-06-300001005757us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001005757csgs:SuretyAndMoneyTransmitterBondsMember2024-06-300001005757us-gaap:TreasuryStockCommonMember2024-06-300001005757us-gaap:AdditionalPaidInCapitalMember2024-06-300001005757us-gaap:BaseRateMembercsgs:TwoThousandTwentyOneCreditAgreementMembersrt:MaximumMember2024-01-012024-06-300001005757us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembercsgs:TwoThousandTwentyOneCreditAgreementMembersrt:MinimumMember2024-01-012024-06-300001005757csgs:OtherMember2024-01-012024-06-300001005757csgs:SECRule10b51PlanMember2024-01-012024-06-3000010057572023-01-012023-06-300001005757csgs:TelecommunicationsMember2024-01-012024-06-300001005757us-gaap:RetainedEarningsMember2023-01-012023-03-310001005757us-gaap:CommonStockMember2024-01-012024-03-310001005757us-gaap:TreasuryStockCommonMember2022-12-310001005757us-gaap:OneTimeTerminationBenefitsMember2024-06-300001005757csgs:TwoThousandTwentyThreeSeniorConvertibleNotesMembersrt:MinimumMember2024-06-300001005757csgs:IcheckGatewayComLLCMembercsgs:AcquiredCustomerContractsMember2024-06-0300010057572024-04-012024-06-300001005757csgs:TwoThousandTwentyOneCreditAgreementMembercsgs:TwoThousandTwentyOneTermLoanMember2023-12-3100010057572023-06-3000010057572022-12-310001005757us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001005757csgs:CustomerContractCostsMember2023-01-012023-06-300001005757csgs:TelecommunicationsMember2023-04-012023-06-300001005757us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:RevolvingCreditFacilityMembercsgs:TwoThousandTwentyOneCreditAgreementMember2024-06-300001005757us-gaap:CommonStockMember2024-04-012024-06-300001005757srt:AmericasMember2023-04-012023-06-300001005757us-gaap:AdditionalPaidInCapitalMember2024-03-310001005757csgs:DgitSystemsPtyLtdMember2024-06-300001005757us-gaap:OtherRestructuringMember2023-12-310001005757csgs:TwoThousandTwentyOneCreditAgreementMembercsgs:TwoThousandTwentyOneTermLoanMember2024-01-012024-06-300001005757csgs:IcheckGatewayComLLCMember2024-01-012024-06-300001005757csgs:StockRepurchaseProgramMember2024-06-300001005757us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembercsgs:TwoThousandTwentyOneCreditAgreementMembersrt:MaximumMember2024-01-012024-06-300001005757us-gaap:TreasuryStockCommonMember2023-03-310001005757us-gaap:OtherNoncurrentAssetsMember2024-06-30xbrli:purecsgs:Employeesxbrli:sharescsgs:Tradingdayiso4217:USD
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
|
|
☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2024
OR
|
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 0-27512
CSG SYSTEMS INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
|
|
Delaware |
47-0783182 |
(State or other jurisdiction
of incorporation or organization) |
(I.R.S. Employer
Identification No.) |
169 Inverness Dr W, Suite 300
Englewood, Colorado 80112
(Address of principal executive offices, including zip code)
(303) 200-2000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
|
|
|
|
|
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
Common Stock, Par Value $0.01 Per Share |
|
CSGS |
|
NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
|
|
|
|
|
|
|
Large accelerated filer |
|
☒ |
|
Accelerated filer |
|
☐ |
Non-accelerated filer |
|
☐ |
|
Smaller reporting company |
|
☐ |
Emerging growth company |
|
☐ |
|
|
|
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of August 6, 2024, there were 29,503,059 shares of the registrant’s common stock outstanding.
CSG SYSTEMS INTERNATIONAL, INC.
FORM 10-Q for the Quarter Ended June 30, 2024
INDEX
CSG SYSTEMS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
June 30,
2024 |
|
|
December 31,
2023 |
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
110,435 |
|
|
$ |
186,264 |
|
Settlement and merchant reserve assets |
|
|
232,054 |
|
|
|
274,699 |
|
Trade accounts receivable: |
|
|
|
|
|
|
Billed, net of allowance of $4,720 and $5,432 |
|
|
266,214 |
|
|
|
267,680 |
|
Unbilled |
|
|
84,570 |
|
|
|
82,163 |
|
Income taxes receivable |
|
|
10,028 |
|
|
|
1,345 |
|
Other current assets |
|
|
55,740 |
|
|
|
50,075 |
|
Total current assets |
|
|
759,041 |
|
|
|
862,226 |
|
Non-current assets: |
|
|
|
|
|
|
Property and equipment, net of depreciation of $131,573 and $121,816 |
|
|
59,111 |
|
|
|
65,545 |
|
Operating lease right-of-use assets |
|
|
28,656 |
|
|
|
34,283 |
|
Software, net of amortization of $164,369 and $157,601 |
|
|
21,408 |
|
|
|
14,224 |
|
Goodwill |
|
|
317,129 |
|
|
|
308,596 |
|
Acquired customer contracts, net of amortization of $128,867 and $126,469 |
|
|
46,818 |
|
|
|
35,879 |
|
Customer contract costs, net of amortization of $44,140 and $42,094 |
|
|
57,128 |
|
|
|
54,421 |
|
Deferred income taxes |
|
|
54,934 |
|
|
|
57,855 |
|
Other assets |
|
|
9,063 |
|
|
|
10,017 |
|
Total non-current assets |
|
|
594,247 |
|
|
|
580,820 |
|
Total assets |
|
$ |
1,353,288 |
|
|
$ |
1,443,046 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
7,500 |
|
|
$ |
7,500 |
|
Operating lease liabilities |
|
|
14,841 |
|
|
|
15,946 |
|
Customer deposits |
|
|
35,993 |
|
|
|
41,035 |
|
Trade accounts payable |
|
|
52,862 |
|
|
|
46,406 |
|
Accrued employee compensation |
|
|
49,765 |
|
|
|
84,380 |
|
Settlement and merchant reserve liabilities |
|
|
229,636 |
|
|
|
273,817 |
|
Deferred revenue |
|
|
56,145 |
|
|
|
54,199 |
|
Income taxes payable |
|
|
645 |
|
|
|
4,104 |
|
Other current liabilities |
|
|
29,057 |
|
|
|
33,449 |
|
Total current liabilities |
|
|
476,444 |
|
|
|
560,836 |
|
Non-current liabilities: |
|
|
|
|
|
|
Long-term debt, net of unamortized discounts of $13,893 and $15,628 |
|
|
532,982 |
|
|
|
534,997 |
|
Operating lease liabilities |
|
|
27,722 |
|
|
|
34,360 |
|
Deferred revenue |
|
|
22,375 |
|
|
|
23,447 |
|
Income taxes payable |
|
|
3,241 |
|
|
|
3,041 |
|
Deferred income taxes |
|
|
122 |
|
|
|
123 |
|
Other non-current liabilities |
|
|
17,073 |
|
|
|
12,916 |
|
Total non-current liabilities |
|
|
603,515 |
|
|
|
608,884 |
|
Total liabilities |
|
|
1,079,959 |
|
|
|
1,169,720 |
|
Stockholders' equity: |
|
|
|
|
|
|
Preferred stock, par value $.01 per share; 10,000 shares authorized; zero shares issued and
outstanding |
|
|
- |
|
|
|
- |
|
Common stock, par value $.01 per share; 100,000 shares authorized; 29,591 and 29,541 shares
outstanding |
|
|
717 |
|
|
|
713 |
|
Additional paid-in capital |
|
|
499,995 |
|
|
|
490,947 |
|
Treasury stock, at cost; 40,802 and 40,398 shares |
|
|
(1,155,542 |
) |
|
|
(1,136,055 |
) |
Accumulated other comprehensive income (loss): |
|
|
|
|
|
|
Unrealized gain on short-term investments, net of tax |
|
|
- |
|
|
|
1 |
|
Cumulative foreign currency translation adjustments |
|
|
(55,629 |
) |
|
|
(50,414 |
) |
Accumulated earnings |
|
|
983,788 |
|
|
|
968,134 |
|
Total stockholders' equity |
|
|
273,329 |
|
|
|
273,326 |
|
Total liabilities and stockholders' equity |
|
$ |
1,353,288 |
|
|
$ |
1,443,046 |
|
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
CSG SYSTEMS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
Six Months Ended |
|
|
|
June 30, 2024 |
|
|
June 30, 2023 |
|
|
June 30, 2024 |
|
|
June 30, 2023 |
|
|
Revenue |
$ |
290,318 |
|
|
$ |
286,327 |
|
|
$ |
585,453 |
|
|
$ |
585,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue (exclusive of depreciation, shown separately below) |
|
152,892 |
|
|
|
151,142 |
|
|
|
310,779 |
|
|
|
306,163 |
|
|
Other operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
38,411 |
|
|
|
36,645 |
|
|
|
74,506 |
|
|
|
72,109 |
|
|
Selling, general and administrative |
|
61,159 |
|
|
|
62,686 |
|
|
|
122,881 |
|
|
|
121,833 |
|
|
Depreciation |
|
5,337 |
|
|
|
5,573 |
|
|
|
10,973 |
|
|
|
11,293 |
|
|
Restructuring and reorganization charges |
|
7,099 |
|
|
|
2,075 |
|
|
|
9,097 |
|
|
|
7,269 |
|
|
Total operating expenses |
|
264,898 |
|
|
|
258,121 |
|
|
|
528,236 |
|
|
|
518,667 |
|
|
Operating income |
|
25,420 |
|
|
|
28,206 |
|
|
|
57,217 |
|
|
|
66,399 |
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(7,698 |
) |
|
|
(7,837 |
) |
|
|
(15,204 |
) |
|
|
(15,056 |
) |
|
Interest income |
|
2,103 |
|
|
|
772 |
|
|
|
4,719 |
|
|
|
1,341 |
|
|
Other, net |
|
174 |
|
|
|
(1,428 |
) |
|
|
732 |
|
|
|
(3,860 |
) |
|
Total other |
|
(5,421 |
) |
|
|
(8,493 |
) |
|
|
(9,753 |
) |
|
|
(17,575 |
) |
|
Income before income taxes |
|
19,999 |
|
|
|
19,713 |
|
|
|
47,464 |
|
|
|
48,824 |
|
|
Income tax provision |
|
(6,170 |
) |
|
|
(5,759 |
) |
|
|
(14,168 |
) |
|
|
(13,942 |
) |
|
Net income |
$ |
13,829 |
|
|
$ |
13,954 |
|
|
$ |
33,296 |
|
|
$ |
34,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
28,546 |
|
|
|
30,629 |
|
|
|
28,531 |
|
|
|
30,524 |
|
|
Diluted |
|
28,600 |
|
|
|
30,726 |
|
|
|
28,698 |
|
|
|
30,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.48 |
|
|
$ |
0.46 |
|
|
$ |
1.17 |
|
|
$ |
1.14 |
|
|
Diluted |
|
0.48 |
|
|
|
0.45 |
|
|
|
1.16 |
|
|
|
1.14 |
|
|
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
CSG SYSTEMS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
Six Months Ended |
|
|
|
|
June 30, 2024 |
|
|
June 30, 2023 |
|
|
June 30, 2024 |
|
|
June 30, 2023 |
|
|
Net income |
|
$ |
13,829 |
|
|
$ |
13,954 |
|
|
$ |
33,296 |
|
|
$ |
34,882 |
|
|
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
(241 |
) |
|
|
1,709 |
|
|
|
(5,216 |
) |
|
|
4,552 |
|
|
Other comprehensive income (loss), net of tax |
|
|
(241 |
) |
|
|
1,709 |
|
|
|
(5,216 |
) |
|
|
4,552 |
|
|
Total comprehensive income, net of tax |
|
$ |
13,588 |
|
|
$ |
15,663 |
|
|
$ |
28,080 |
|
|
$ |
39,434 |
|
|
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
CSG SYSTEMS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - UNAUDITED
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares of Common Stock Outstanding |
|
Common Stock |
|
Additional Paid-in Capital |
|
Treasury Stock |
|
Accumulated Other Comprehensive Income (Loss) |
|
Accumulated Earnings |
|
Total Stockholders' Equity |
|
For the Six Months Ended June 30, 2024: |
|
BALANCE, January 1, 2024 |
|
29,541 |
|
$ |
713 |
|
$ |
490,947 |
|
$ |
(1,136,055 |
) |
$ |
(50,413 |
) |
$ |
968,134 |
|
$ |
273,326 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
19,467 |
|
|
|
Foreign currency translation adjustments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(4,975 |
) |
|
- |
|
|
|
Total comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
14,492 |
|
Repurchase of common stock |
|
(344 |
) |
|
(2 |
) |
|
(8,538 |
) |
|
(9,683 |
) |
|
- |
|
|
- |
|
|
(18,223 |
) |
Issuance of common stock pursuant to employee stock
purchase plan |
|
20 |
|
|
- |
|
|
866 |
|
|
- |
|
|
- |
|
|
- |
|
|
866 |
|
Issuance of restricted common stock pursuant to
stock-based compensation plans |
|
573 |
|
|
6 |
|
|
(6 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Cancellation of restricted common stock issued
pursuant to stock-based compensation plans |
|
(11 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Stock-based compensation expense |
|
- |
|
|
- |
|
|
7,736 |
|
|
- |
|
|
- |
|
|
- |
|
|
7,736 |
|
Dividends |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(8,857 |
) |
|
(8,857 |
) |
BALANCE, March 31, 2024 |
|
29,779 |
|
|
717 |
|
|
491,005 |
|
|
(1,145,738 |
) |
|
(55,388 |
) |
|
978,744 |
|
|
269,340 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
13,829 |
|
|
|
Foreign currency translation adjustments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(241 |
) |
|
- |
|
|
|
Total comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
13,588 |
|
Repurchase of common stock |
|
(228 |
) |
|
- |
|
|
(397 |
) |
|
(9,804 |
) |
|
- |
|
|
- |
|
|
(10,201 |
) |
Issuance of common stock pursuant to employee stock
purchase plan |
|
20 |
|
|
- |
|
|
752 |
|
|
- |
|
|
- |
|
|
- |
|
|
752 |
|
Issuance of restricted common stock pursuant to
stock-based compensation plans |
|
90 |
|
|
1 |
|
|
(1 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Cancellation of restricted common stock issued
pursuant to stock-based compensation plans |
|
(70 |
) |
|
(1 |
) |
|
1 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Stock-based compensation expense |
|
- |
|
|
- |
|
|
8,635 |
|
|
- |
|
|
- |
|
|
- |
|
|
8,635 |
|
Dividends |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(8,785 |
) |
|
(8,785 |
) |
BALANCE, June 30, 2024 |
|
29,591 |
|
$ |
717 |
|
$ |
499,995 |
|
$ |
(1,155,542 |
) |
$ |
(55,629 |
) |
$ |
983,788 |
|
$ |
273,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares of Common Stock Outstanding |
|
Common Stock |
|
Additional Paid-in Capital |
|
Treasury Stock |
|
Accumulated Other Comprehensive Income (Loss) |
|
Accumulated Earnings |
|
Total Stockholders' Equity |
|
For the Six Months Ended June 30, 2023: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE, January 1, 2023 |
|
31,269 |
|
$ |
708 |
|
$ |
495,189 |
|
$ |
(1,018,034 |
) |
$ |
(58,829 |
) |
$ |
936,215 |
|
$ |
355,249 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
20,928 |
|
|
|
Foreign currency translation adjustments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
2,843 |
|
|
- |
|
|
|
Total comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
23,771 |
|
Repurchase of common stock |
|
(166 |
) |
|
(2 |
) |
|
(9,304 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(9,306 |
) |
Issuance of common stock pursuant to employee stock
purchase plan |
|
19 |
|
|
- |
|
|
893 |
|
|
- |
|
|
- |
|
|
- |
|
|
893 |
|
Issuance of restricted common stock pursuant to
stock-based compensation plans |
|
574 |
|
|
6 |
|
|
(6 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Cancellation of restricted common stock issued
pursuant to stock-based compensation plans |
|
(18 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Stock-based compensation expense |
|
- |
|
|
- |
|
|
6,412 |
|
|
- |
|
|
- |
|
|
- |
|
|
6,412 |
|
Dividends |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(8,796 |
) |
|
(8,796 |
) |
BALANCE, March 31, 2023 |
|
31,678 |
|
|
712 |
|
|
493,184 |
|
|
(1,018,034 |
) |
|
(55,986 |
) |
|
948,347 |
|
|
368,223 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
13,954 |
|
|
|
Foreign currency translation adjustments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,709 |
|
|
- |
|
|
|
Total comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
15,663 |
|
Repurchase of common stock |
|
(2 |
) |
|
- |
|
|
(112 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(112 |
) |
Issuance of common stock pursuant to employee stock
purchase plan |
|
18 |
|
|
- |
|
|
771 |
|
|
- |
|
|
- |
|
|
- |
|
|
771 |
|
Issuance of restricted common stock pursuant to
stock-based compensation plans |
|
64 |
|
|
1 |
|
|
(1 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Cancellation of restricted common stock issued
pursuant to stock-based compensation plans |
|
(7 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Stock-based compensation expense |
|
- |
|
|
- |
|
|
7,644 |
|
|
- |
|
|
- |
|
|
- |
|
|
7,644 |
|
Dividends |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(8,878 |
) |
|
(8,878 |
) |
BALANCE, June 30, 2023 |
|
31,751 |
|
$ |
713 |
|
$ |
501,486 |
|
$ |
(1,018,034 |
) |
$ |
(54,277 |
) |
$ |
953,423 |
|
$ |
383,311 |
|
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
CSG SYSTEMS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
(in thousands)
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
June 30, 2024 |
|
|
June 30, 2023 |
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
Net income |
$ |
33,296 |
|
|
$ |
34,882 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities- |
|
|
|
|
|
|
Depreciation |
|
11,409 |
|
|
|
11,506 |
|
|
Amortization |
|
24,147 |
|
|
|
22,808 |
|
|
Asset impairment |
|
- |
|
|
|
1,689 |
|
|
Gain on lease modifications |
|
- |
|
|
|
(3,812 |
) |
|
Unrealized foreign currency transaction (gain) loss, net |
|
(254 |
) |
|
|
241 |
|
|
Deferred income taxes |
|
2,311 |
|
|
|
(4,673 |
) |
|
Stock-based compensation |
|
16,371 |
|
|
|
14,056 |
|
|
Changes in operating assets and liabilities, net of acquired amounts: |
|
|
|
|
|
|
Trade accounts receivable, net |
|
892 |
|
|
|
(7,789 |
) |
|
Other current and non-current assets and liabilities |
|
(11,154 |
) |
|
|
(16,083 |
) |
|
Income taxes payable/receivable |
|
(11,937 |
) |
|
|
(7,235 |
) |
|
Trade accounts payable and accrued liabilities |
|
(52,596 |
) |
|
|
(26,853 |
) |
|
Deferred revenue |
|
1,269 |
|
|
|
9,046 |
|
|
Net cash provided by operating activities |
|
13,754 |
|
|
|
27,783 |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
Purchases of software, property, and equipment |
|
(9,073 |
) |
|
|
(16,428 |
) |
|
Proceeds from sale/maturity of short-term investments |
|
- |
|
|
|
71 |
|
|
Business combinations, net of cash and settlement assets acquired of $46,432 and zero |
|
17,293 |
|
|
|
- |
|
|
Net cash provided by (used in) investing activities |
|
8,220 |
|
|
|
(16,357 |
) |
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
Proceeds from issuance of common stock |
|
1,618 |
|
|
|
1,664 |
|
|
Payment of cash dividends |
|
(18,088 |
) |
|
|
(17,712 |
) |
|
Repurchase of common stock |
|
(27,943 |
) |
|
|
(9,418 |
) |
|
Deferred acquisition payments |
|
(488 |
) |
|
|
(1,220 |
) |
|
Proceeds from long-term debt |
|
15,000 |
|
|
|
30,000 |
|
|
Payments on long-term debt |
|
(18,750 |
) |
|
|
(18,750 |
) |
|
Payments on financing obligations |
|
(469 |
) |
|
|
- |
|
|
Settlement and merchant reserve activity |
|
(88,703 |
) |
|
|
(63,107 |
) |
|
Net cash used in financing activities |
|
(137,823 |
) |
|
|
(78,543 |
) |
|
Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash |
|
(2,438 |
) |
|
|
708 |
|
|
|
|
|
|
|
|
|
Net decrease in cash, cash equivalents, and restricted cash |
|
(118,287 |
) |
|
|
(66,409 |
) |
|
|
|
|
|
|
|
|
Cash, cash equivalents, and restricted cash, beginning of period |
|
463,876 |
|
|
|