Company Quick10K Filing
CSG Systems
Price51.51 EPS2
Shares33 P/E28
MCap1,699 P/FCF16
Net Debt186 EBIT95
TEV1,884 TEV/EBIT20
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-06
10-Q 2020-03-31 Filed 2020-05-07
10-K 2019-12-31 Filed 2020-02-21
10-Q 2019-09-30 Filed 2019-11-01
10-Q 2019-06-30 Filed 2019-08-08
10-Q 2019-03-31 Filed 2019-05-03
10-K 2018-12-31 Filed 2019-02-22
10-Q 2018-09-30 Filed 2018-11-09
10-Q 2018-06-30 Filed 2018-08-03
10-Q 2018-03-31 Filed 2018-05-04
10-K 2017-12-31 Filed 2018-02-23
10-Q 2017-09-30 Filed 2017-11-03
10-Q 2017-06-30 Filed 2017-08-04
10-Q 2017-03-31 Filed 2017-05-05
10-K 2016-12-31 Filed 2017-02-24
10-Q 2016-09-30 Filed 2016-11-03
10-Q 2016-06-30 Filed 2016-08-04
10-Q 2016-03-31 Filed 2016-05-06
10-K 2015-12-31 Filed 2016-02-29
10-Q 2015-09-30 Filed 2015-11-05
10-Q 2015-06-30 Filed 2015-08-06
10-Q 2015-03-31 Filed 2015-05-08
10-K 2014-12-31 Filed 2015-02-27
10-Q 2014-09-30 Filed 2014-11-07
10-Q 2014-06-30 Filed 2014-08-07
10-Q 2014-03-31 Filed 2014-05-08
10-K 2013-12-31 Filed 2014-02-28
10-Q 2013-09-30 Filed 2013-11-07
10-Q 2013-06-30 Filed 2013-08-09
10-Q 2013-03-31 Filed 2013-05-07
10-K 2012-12-31 Filed 2013-03-08
10-Q 2012-09-30 Filed 2012-11-06
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-09
10-K 2011-12-31 Filed 2012-03-15
10-Q 2011-09-30 Filed 2011-11-08
10-Q 2011-06-30 Filed 2011-08-09
10-Q 2011-03-31 Filed 2011-05-09
10-K 2010-12-31 Filed 2011-03-09
10-Q 2010-09-30 Filed 2010-11-09
10-Q 2010-06-30 Filed 2010-08-06
10-Q 2010-03-31 Filed 2010-05-10
10-K 2009-12-31 Filed 2010-02-23
8-K 2020-08-26 Enter Agreement, Exhibits
8-K 2020-08-05 Earnings
8-K 2020-05-21
8-K 2020-05-18
8-K 2020-05-06
8-K 2020-02-05
8-K 2020-01-10
8-K 2019-12-16
8-K 2019-10-30
8-K 2019-08-07
8-K 2019-05-16
8-K 2019-05-15
8-K 2019-05-01
8-K 2019-02-06
8-K 2018-11-30
8-K 2018-11-14
8-K 2018-11-07
8-K 2018-10-01
8-K 2018-09-12
8-K 2018-08-22
8-K 2018-08-01
8-K 2018-05-17
8-K 2018-05-17
8-K 2018-05-17
8-K 2018-05-02
8-K 2018-03-05
8-K 2018-02-26
8-K 2018-02-07

CSGS 10Q Quarterly Report

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.26AH csgs-ex1026ah_55.htm
EX-10.26AI csgs-ex1026ai_56.htm
EX-10.26AJ csgs-ex1026aj_54.htm
EX-31.01 csgs-ex3101_8.htm
EX-31.02 csgs-ex3102_6.htm
EX-32.01 csgs-ex3201_7.htm

CSG Systems Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
1.31.00.80.50.30.02012201420172020
Assets, Equity
0.30.20.20.10.10.02012201420172020
Rev, G Profit, Net Income
0.20.10.0-0.0-0.1-0.22012201420172020
Ops, Inv, Fin

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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, 2020

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.)

 

6175 S. Willow Drive, 10th Floor

Greenwood Village, Colorado 80111

(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 3, 2020, there were 33,083,921 shares of the registrant’s common stock outstanding.

 

 

 


CSG SYSTEMS INTERNATIONAL, INC.

FORM 10-Q for the Quarter Ended June 30, 2020

INDEX

 

 

 

Page No.

 

 

 

Part I - FINANCIAL INFORMATION

 

 

 

 

Item 1.

Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 (Unaudited)

3

 

 

 

 

Condensed Consolidated Statements of Income for the Quarters and Six Months Ended June 30, 2020 and 2019 (Unaudited)

4

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income for the Quarters and Six Months Ended June 30, 2020 and 2019 (Unaudited)

5

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the Quarters and Six Months Ended June 30, 2020 and 2019 (Unaudited)

6

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the Quarters and Six Months Ended June 30, 2020 and 2019 (Unaudited)

7

 

 

 

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

8

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

15

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

23

 

 

 

Item 4.

Controls and Procedures

24

 

 

 

Part II - OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

25

 

 

 

Item 1A.

Risk Factors

25

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

25

 

 

 

Item 6.

Exhibits

26

 

 

 

 

Index to Exhibits

27

 

 

 

 

Signatures

28

 

 

 

2


CSG SYSTEMS INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

(in thousands, except per share amounts)  

 

 

June 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

144,019

 

 

$

156,548

 

Short-term investments

 

 

27,183

 

 

 

26,109

 

Total cash, cash equivalents and short-term investments

 

 

171,202

 

 

 

182,657

 

Settlement assets

 

 

139,248

 

 

 

169,327

 

Trade accounts receivable:

 

 

 

 

 

 

 

 

Billed, net of allowance of $4,057 and $3,735

 

 

244,413

 

 

 

244,058

 

Unbilled

 

 

35,941

 

 

 

33,450

 

Income taxes receivable

 

 

7,516

 

 

 

4,297

 

Other current assets

 

 

44,448

 

 

 

35,293

 

Total current assets

 

 

642,768

 

 

 

669,082

 

Non-current assets:

 

 

 

 

 

 

 

 

Property and equipment, net of depreciation of $100,883 and $98,029

 

 

84,689

 

 

 

84,429

 

Operating lease right-of-use assets

 

 

117,304

 

 

 

94,847

 

Software, net of amortization of $131,835 and $125,437

 

 

29,141

 

 

 

32,526

 

Goodwill

 

 

262,774

 

 

 

259,164

 

Acquired client contracts, net of amortization of $96,491 and $93,767

 

 

52,776

 

 

 

55,105

 

Client contract costs, net of amortization of $37,827 and $31,526

 

 

41,561

 

 

 

50,746

 

Deferred income taxes

 

 

9,193

 

 

 

9,392

 

Other assets

 

 

29,176

 

 

 

27,739

 

Total non-current assets

 

 

626,614

 

 

 

613,948

 

Total assets

 

$

1,269,382

 

 

$

1,283,030

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

12,188

 

 

$

10,313

 

Operating lease liabilities

 

 

21,771

 

 

 

22,442

 

Client deposits

 

 

37,278

 

 

 

38,687

 

Trade accounts payable

 

 

34,494

 

 

 

32,704

 

Accrued employee compensation

 

 

45,689

 

 

 

77,527

 

Settlement liabilities

 

 

137,894

 

 

 

168,342

 

Deferred revenue

 

 

52,195

 

 

 

45,094

 

Income taxes payable

 

 

7,632

 

 

 

2,806

 

Other current liabilities

 

 

21,626

 

 

 

20,778

 

Total current liabilities

 

 

370,767

 

 

 

418,693

 

Non-current liabilities:

 

 

 

 

 

 

 

 

Long-term debt, net of unamortized discounts of $7,726 and $10,053

 

 

342,274

 

 

 

346,509

 

Operating lease liabilities

 

 

102,609

 

 

 

78,936

 

Deferred revenue

 

 

16,772

 

 

 

18,552

 

Income taxes payable

 

 

2,706

 

 

 

2,543

 

Deferred income taxes

 

 

13,334

 

 

 

6,376

 

Other non-current liabilities

 

 

23,298

 

 

 

14,759

 

Total non-current liabilities

 

 

500,993

 

 

 

467,675

 

Total liabilities

 

 

871,760

 

 

 

886,368

 

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; 33,080 and 32,891 shares outstanding

 

 

699

 

 

 

696

 

Additional paid-in capital

 

 

458,362

 

 

 

454,663

 

Treasury stock, at cost; 35,507 and 35,356  shares

 

 

(874,592

)

 

 

(867,817

)

Accumulated other comprehensive income (loss):

 

 

 

 

 

 

 

 

Unrealized gains on short-term investments, net of tax

 

 

44

 

 

 

16

 

Cumulative foreign currency translation adjustments

 

 

(51,932

)

 

 

(39,519

)

Accumulated earnings

 

 

865,041

 

 

 

848,623

 

Total stockholders' equity

 

 

397,622

 

 

 

396,662

 

Total liabilities and stockholders' equity

 

$

1,269,382

 

 

$

1,283,030

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

3


CSG SYSTEMS INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(in thousands, except per share amounts)

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

June 30,

2020

 

 

June 30,

2019

 

 

June 30,

2020

 

 

June 30,

2019

 

 

Revenue

$

240,321

 

 

$

245,856

 

 

$

485,938

 

 

$

490,649

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue (exclusive of depreciation, shown separately below)

 

138,153

 

 

 

132,234

 

 

 

269,359

 

 

 

261,197

 

 

Other operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

29,263

 

 

 

30,645

 

 

 

59,600

 

 

 

63,236

 

 

Selling, general and administrative

 

44,999

 

 

 

45,372

 

 

 

89,383

 

 

 

91,290

 

 

Depreciation

 

5,634

 

 

 

5,441

 

 

 

11,199

 

 

 

10,554

 

 

Restructuring and reorganization charges

 

2,497

 

 

 

1,826

 

 

 

3,463

 

 

 

1,941

 

 

Total operating expenses

 

220,546

 

 

 

215,518

 

 

 

433,004

 

 

 

428,218

 

 

Operating income

 

19,775

 

 

 

30,338

 

 

 

52,934

 

 

 

62,431

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(4,040

)

 

 

(4,498

)

 

 

(8,253

)

 

 

(9,058

)

 

Amortization of original issue discount

 

(740

)

 

 

(700

)

 

 

(1,470

)

 

 

(1,390

)

 

Interest and investment income, net

 

303

 

 

 

417

 

 

 

832

 

 

 

936

 

 

Other, net

 

(1,048

)

 

 

1,280

 

 

 

(1,117

)

 

 

(231

)

 

Total other

 

(5,525

)

 

 

(3,501

)

 

 

(10,008

)

 

 

(9,743

)

 

Income before income taxes

 

14,250

 

 

 

26,837

 

 

 

42,926

 

 

 

52,688

 

 

Income tax provision

 

(3,884

)

 

 

(7,458

)

 

 

(11,046

)

 

 

(14,058

)

 

Net income

$

10,366

 

 

$

19,379

 

 

$

31,880

 

 

$

38,630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

32,100

 

 

 

32,093

 

 

 

32,047

 

 

 

32,111

 

 

Diluted

 

32,258

 

 

 

32,458

 

 

 

32,308

 

 

 

32,448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.32

 

 

$

0.60

 

 

$

0.99

 

 

$

1.20

 

 

Diluted

 

0.32

 

 

 

0.60

 

 

 

0.99

 

 

 

1.19

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 

4


CSG SYSTEMS INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

 

June 30,

2020

 

 

June 30,

2019

 

 

June 30,

2020

 

 

June 30,

2019

 

 

Net income

 

$

10,366

 

 

$

19,379

 

 

$

31,880

 

 

$

38,630

 

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

2,671

 

 

 

(3,818

)

 

 

(12,413

)

 

 

29

 

 

Unrealized holding gains on short-term investments arising during period

 

 

52

 

 

 

10

 

 

 

28

 

 

 

28

 

 

Other comprehensive income (loss), net of tax

 

 

2,723

 

 

 

(3,808

)

 

 

(12,385

)

 

 

57

 

 

Total comprehensive income, net of tax

 

$

13,089

 

 

$

15,571

 

 

$

19,495

 

 

$

38,687

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

5


CSG SYSTEMS INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - UNAUDITED

(in thousands)

 

Shares of Common Stock Outstanding

 

Common Stock

 

Common Stock Warrants

 

Additional Paid-in Capital

 

Treasury Stock

 

Accumulated Other Comprehensive Income (Loss)

 

Accumulated Earnings

 

Total Stockholders' Equity

 

For the Six Months Ended June 30, 2020:

 

BALANCE, January 1, 2020

 

32,891

 

$

696

 

$

-

 

$

454,663

 

$

(867,817

)

$

(39,503

)

$

848,623

 

$

396,662

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

21,514

 

 

 

 

Unrealized gain on short-term investments, net of tax

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(24

)

 

-

 

 

 

 

Foreign currency translation adjustments

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(15,084

)

 

-

 

 

 

 

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,406

 

Repurchase of common stock

 

(299

)

 

(2

)

 

-

 

 

(7,555

)

 

(6,408

)

 

-

 

 

-

 

 

(13,965

)

Issuance of common stock pursuant to employee stock purchase plan

 

14

 

 

-

 

 

-

 

 

564

 

 

-

 

 

-

 

 

-

 

 

564

 

Issuance of restricted common stock pursuant to stock-based compensation plans

 

476

 

 

5

 

 

-

 

 

(5

)

 

-

 

 

-

 

 

-

 

 

-

 

Cancellation of restricted common stock issued pursuant to stock-based compensation plans

 

(7

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Stock-based compensation expense

 

-

 

 

-

 

 

-

 

 

4,857

 

 

 

 

 

 

 

 

 

 

 

4,857

 

Dividends

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(7,693

)

 

(7,693

)

BALANCE, March 31, 2020

 

33,075

 

 

699

 

 

-

 

 

452,524

 

 

(874,225

)

 

(54,611

)

 

862,444

 

 

386,831

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

10,366

 

 

 

 

Unrealized gain on short-term investments, net of tax

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

52

 

 

-

 

 

 

 

Foreign currency translation adjustments

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

2,671

 

 

-

 

 

 

 

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,089

 

Repurchase of common stock

 

(11

)

 

-

 

 

-

 

 

(100

)

 

(367

)

 

-

 

 

-

 

 

(467

)

Issuance of common stock pursuant to employee stock purchase plan

 

18

 

 

-

 

 

-

 

 

683

 

 

-

 

 

-

 

 

-

 

 

683

 

Issuance of restricted common stock pursuant to stock-based compensation plans

 

12

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Cancellation of restricted common stock issued pursuant to stock-based compensation plans

 

(14

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Stock-based compensation expense

 

-

 

 

-

 

 

-

 

 

5,255

 

 

 

 

 

 

 

 

 

 

 </