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 2021-03-31 Filed 2021-05-06
10-K 2020-12-31 Filed 2021-02-19
10-Q 2020-09-30 Filed 2020-11-05
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 2021-02-12
8-K 2021-02-03 Earnings
8-K 2021-01-13 Enter Agreement, Exhibits
8-K 2020-11-04
8-K 2020-08-26
8-K 2020-08-05
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-10.26AP csgs-ex1026ap_109.htm
EX-10.26AQ csgs-ex1026aq_108.htm
EX-10.26AR csgs-ex1026ar_107.htm
EX-10.27D csgs-ex1027d_106.htm
EX-31.01 csgs-ex3101_7.htm
EX-31.02 csgs-ex3102_12.htm
EX-32.01 csgs-ex3201_6.htm

CSG Systems Earnings 2021-03-31

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 March 31, 2021

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 April 30, 2021, there were 32,889,346 shares of the registrant’s common stock outstanding.

 

 

 


 

CSG SYSTEMS INTERNATIONAL, INC.

FORM 10-Q for the Quarter Ended March 31, 2021

INDEX

 

 

 

Page No.

 

 

 

Part I - FINANCIAL INFORMATION

 

 

 

 

Item 1.

Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 (Unaudited)

3

 

 

 

 

Condensed Consolidated Statements of Income for the Quarters ended March 31, 2021 and 2020 (Unaudited)

4

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income for the Quarters ended March 31, 2021 and 2020 (Unaudited)

5

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the Quarters ended March 31, 2021 and 2020 (Unaudited)

6

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the Quarters ended March 31, 2021 and 2020 (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

25

 

 

 

 

Index to Exhibits

26

 

 

 

 

Signatures

27

 

 

 

2


 

 

CSG SYSTEMS INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

(in thousands, except per share amounts)  

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

150,609

 

 

$

188,699

 

Short-term investments

 

 

54,539

 

 

 

51,598

 

Total cash, cash equivalents and short-term investments

 

 

205,148

 

 

 

240,297

 

Settlement assets

 

 

108,578

 

 

 

149,785

 

Trade accounts receivable:

 

 

 

 

 

 

 

 

Billed, net of allowance of $3,718 and $3,628

 

 

247,025

 

 

 

226,623

 

Unbilled

 

 

40,789

 

 

 

37,785

 

Income taxes receivable

 

 

2,421

 

 

 

2,167

 

Other current assets

 

 

39,047

 

 

 

41,688

 

Total current assets

 

 

643,008

 

 

 

698,345

 

Non-current assets:

 

 

 

 

 

 

 

 

Property and equipment, net of depreciation of $110,797 and $105,073

 

 

81,944

 

 

 

81,759

 

Operating lease right-of-use assets

 

 

106,173

 

 

 

110,756

 

Software, net of amortization of $143,662 and $139,836

 

 

25,585

 

 

 

26,453

 

Goodwill

 

 

273,265

 

 

 

272,322

 

Acquired customer contracts, net of amortization of $107,846 and $105,778

 

 

46,273

 

 

 

48,012

 

Customer costs, net of amortization of $42,802 and $39,893

 

 

47,334

 

 

 

47,238

 

Deferred income taxes

 

 

9,892

 

 

 

10,205

 

Other assets

 

 

41,007

 

 

 

36,910

 

Total non-current assets

 

 

631,473

 

 

 

633,655

 

Total assets

 

$

1,274,481

 

 

$

1,332,000

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current portion of long-term debt, net of unamortized discounts of $3,119 and zero

 

$

241,881

 

 

$

14,063

 

Operating lease liabilities

 

 

23,309

 

 

 

22,651

 

Customer deposits

 

 

32,565

 

 

 

39,992

 

Trade accounts payable

 

 

32,949

 

 

 

29,834

 

Accrued employee compensation

 

 

71,120

 

 

 

86,289

 

Settlement liabilities

 

 

107,023

 

 

 

148,819

 

Deferred revenue

 

 

55,840

 

 

 

52,357

 

Income taxes payable

 

 

5,797

 

 

 

6,627

 

Other current liabilities

 

 

17,249

 

 

 

19,383

 

Total current liabilities

 

 

587,733

 

 

 

420,015

 

Non-current liabilities:

 

 

 

 

 

 

 

 

Long-term debt, net of unamortized discounts of $1,017 and $5,346

 

 

107,733

 

 

 

337,154

 

Operating lease liabilities

 

 

91,028

 

 

 

95,926

 

Deferred revenue

 

 

15,505

 

 

 

17,275

 

Income taxes payable

 

 

2,467

 

 

 

2,436

 

Deferred income taxes

 

 

11,569

 

 

 

5,109

 

Other non-current liabilities

 

 

30,731

 

 

 

31,690

 

Total non-current liabilities

 

 

259,033

 

 

 

489,590

 

Total liabilities

 

 

846,766

 

 

 

909,605

 

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; 32,963 and 32,713 shares outstanding

 

 

704

 

 

 

700

 

Additional paid-in capital

 

 

471,364

 

 

 

470,557

 

Treasury stock, at cost; 36,122 and 35,980 shares

 

 

(900,644

)

 

 

(894,126

)

Accumulated other comprehensive income (loss):

 

 

 

 

 

 

 

 

Unrealized gains on short-term investments, net of tax

 

 

7

 

 

 

13

 

Cumulative foreign currency translation adjustments

 

 

(31,506

)

 

 

(31,151

)

Accumulated earnings

 

 

887,790

 

 

 

876,402

 

Total stockholders' equity

 

 

427,715

 

 

 

422,395

 

Total liabilities and stockholders' equity

 

$

1,274,481

 

 

$

1,332,000

 

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

 

 

 

March 31,

2021

 

 

March 31,

2020

 

 

Revenue

$

253,119

 

 

$

245,617

 

 

 

 

 

 

 

 

 

 

 

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

 

133,542

 

 

 

131,206

 

 

Other operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

32,212

 

 

 

30,337

 

 

Selling, general and administrative

 

48,815

 

 

 

44,384

 

 

Depreciation

 

6,113

 

 

 

5,565

 

 

Restructuring and reorganization charges

 

1,060

 

 

 

966

 

 

Total operating expenses

 

221,742

 

 

 

212,458

 

 

Operating income

 

31,377

 

 

 

33,159

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

(3,592

)

 

 

(4,213

)

 

Amortization of original issue discount

 

(772

)

 

 

(730

)

 

Interest and investment income, net

 

124

 

 

 

529

 

 

Other, net

 

(555

)

 

 

(69

)

 

Total other

 

(4,795

)

 

 

(4,483

)

 

Income before income taxes

 

26,582

 

 

 

28,676

 

 

Income tax provision

 

(6,951

)

 

 

(7,162

)

 

Net income

$

19,631

 

 

$

21,514

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

31,844

 

 

 

31,994

 

 

Diluted

 

32,146

 

 

 

32,358

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

Basic

$

0.62

 

 

$

0.67

 

 

Diluted

 

0.61

 

 

 

0.66

 

 

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

 

 

 

 

March 31,

2021

 

 

March 31,

2020

 

 

Net income

 

$

19,631

 

 

$

21,514

 

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(355

)

 

 

(15,084

)

 

Unrealized holding losses on short-term investments arising during period

 

 

(6

)

 

 

(24

)

 

Other comprehensive loss, net of tax

 

 

(361

)

 

 

(15,108

)

 

Total comprehensive income, net of tax

 

$

19,270

 

 

$

6,406

 

 

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

 

Additional Paid-in Capital

 

Treasury Stock

 

Accumulated Other Comprehensive Income (Loss)

 

Accumulated Earnings

 

Total Stockholders' Equity

 

For the Quarter Ended March 31, 2021:

 

BALANCE, January 1, 2021

 

32,713

 

$

700

 

$

470,557

 

$

(894,126

)

$

(31,138

)

$

876,402

 

$

422,395

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

19,631

 

 

 

 

Unrealized gain on short-term investments, net of tax

 

-

 

 

-

 

 

-

 

 

-

 

 

(6

)

 

-

 

 

 

 

Foreign currency translation adjustments

 

-

 

 

-

 

 

-

 

 

-

 

 

(355

)

 

-

 

 

 

 

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,270

 

Repurchase of common stock

 

(252

)

 

(1

)

 

(5,202

)

 

(6,518

)

 

-

 

 

-

 

 

(11,721

)

Issuance of common stock pursuant to employee stock purchase plan

 

16

 

 

-

 

 

619

 

 

-

 

 

-

 

 

-

 

 

619

 

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

 

487

 

 

5

 

 

(5

)

 

-

 

 

-

 

 

-

 

 

-

 

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

 

(1

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Stock-based compensation expense

 

-

 

 

-

 

 

5,395

 

 

-

 

 

-

 

 

-

 

 

5,395

 

Dividends

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(8,243

)

 

(8,243

)

BALANCE, March 31, 2021

 

32,963

 

$

704

 

$

471,364

 

$

(900,644

)

$

(31,499

)

$

887,790

 

$

427,715

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Quarter Ended March 31, 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

 

 

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

6


CSG SYSTEMS INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(in thousands)

 

 

Quarter Ended

 

 

 

March 31,

2021

 

 

March 31,

2020

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

$

19,631

 

 

$

21,514

 

 

Adjustments to reconcile net income to net cash used in operating activities -

 

 

 

 

 

 

 

 

Depreciation

 

6,113

 

 

 

5,565

 

 

Amortization

 

10,737

 

 

 

10,788

 

 

Amortization of original issue discount

 

772

 

 

 

730

 

 

Asset impairment

 

102

 

 

 

259

 

 

(Gain)/loss on short-term investments

 

15

 

 

 

(85

)

 

Deferred income taxes

 

6,508

 

 

 

9,310

 

 

Stock-based compensation

 

5,395

 

 

 

4,857

 

 

Changes in operating assets and liabilities, net of acquired amounts:

 

 

 

 

 

 

 

 

Trade accounts receivable, net

 

(23,874

)

 

 

(23,304

)

 

Other current and non-current assets and liabilities

 

(999

)

 

 

(8,452

)

 

Income taxes payable/receivable

 

(1,022

)

 

 

(3,092

)

 

Trade accounts payable and accrued liabilities

 

(28,101

)

 

 

(32,455

)

 

Deferred revenue

 

1,914

 

 

 

7,152

 

 

Net cash used in operating activities

 

(2,809

)

 

 

(7,213

)

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of software, property and equipment

 

(8,239

)

 

 

(4,822

)

 

Purchases of short-term investments

 

(32,304

)

 

 

(16,037

)

 

Proceeds from sale/maturity of short-term investments

 

29,340

 

 

 

18,670

 

 

Acquisition of and investments in business, net of cash acquired

 

(648

)

 

 

(9,991

)

 

Net cash used in investing activities

 

(11,851

)

 

 

(12,180

)

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

619

 

 

 

564

 

 

Payment of cash dividends

 

(8,635

)

 

 

(