VioletaStoimenova Introduction Information Services Group (NASDAQ:III) posted a softer first quarter for what I believe represents more transient macro issues. In other words, as noted last time I still think III is positioned to grow from various initiatives and from the shifting mix to recurring revenue, all of which should be further boosted by operating leverage. With their share price down low-single-digit percent from the Q1 earnings release, I think today's price offers attractive forward returns ass ...

VANCOUVER, British Columbia, May 21, 2024 (GLOBE NEWSWIRE) -- Imperial Metals Corporation ("Imperial" or the "Company") (TSX:III) reports diamond drill results from three more holes of the Mount Polley 2024 exploration program, including a notable interval of 257.5 metres grading 0.71% copper and 0.39 g/t gold from 35.0 metres in diamond drill hole SD-24-180. This phase of drilling is ongoing and is following up on the significant results obtained in the 2023 drill programs. Hole SD-24-180 was a vertical ho ...

Core Insights - Information Services Group (ISG) reported a total revenue of $64.27 million for the quarter ending March 2024, reflecting a decrease of 18.1% compared to previous periods [4] - The company's reliance on international markets is crucial for understanding its financial health and growth trajectory, as it can provide a hedge against domestic downturns and access to faster-growing economies [2][3] International Revenue Breakdown - EMEA contributed $17.8 million, accounting for 27.7% of total revenue, which was a surprise decrease of 11.46% from the expected $20.1 million [5] - Asia Pacific generated $5.63 million, representing 8.8% of total revenue, also falling short of the projected $5.87 million by 4.04% [6] Future Revenue Projections - Analysts project ISG to report $66 million in total revenue for the current fiscal quarter, indicating an 11.5% decline from the previous year, with EMEA and Asia Pacific expected to contribute 30.8% ($20.34 million) and 9.2% ($6.04 million) respectively [7] - For the full year, total annual revenue is expected to be $278.28 million, marking a decrease of 4.4% compared to last year, with EMEA and Asia Pacific projected to contribute 29.5% ($82.13 million) and 8.9% ($24.74 million) respectively [8] Market Performance - ISG's stock has declined by 18.8% over the past month, while the broader market (S&P 500) has increased by 1.3%, indicating underperformance [13] - Over the past three months, ISG's stock price has decreased by 32.6%, contrasting with a 4.3% rise in the S&P 500 index [13]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Address of principal executive offices and zip code) (203) 517-3100 (Registrant's telephone number, including area code) For the transition period from to Commission File Number: 001-33287 INFORMATIO ...

Information Services Group (III) came out with quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -83.33%. A quarter ago, it was expected that this market advisory service company would post earnings of $0.10 per share when it actually produced earnings of $0.06, delivering a surprise of -40%.Over the ...

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) ISG reported Q1 2024 GAAP revenues of $64 million, a net loss of $3.4 million, and adjusted EBITDA of $4 million, with recurring revenue growth and a Q2 dividend Q1 2024 Key Financial Metrics | Metric | Value (USD) | | :--- | :--- | | GAAP Revenues | $64 million | | Net Loss | $3.4 million | | GAAP Loss Per Share | $0.07 | | Adjusted Net Income Per Share | $0.01 | | Adjusted EBITDA | $4 million | | Cash from Operations | $2.3 million | - Recurring revenues for the trailing 12 months reached **$126 million**, up **10%** from the prior 12-month period, and constituted **about half** of the first-quarter revenues[5](index=5&type=chunk) - The company's new sourcing platform, ISG Tango™, launched in March, already has over **$2.6 billion** of contract value running on it[5](index=5&type=chunk) - A second-quarter dividend of **$0.045 per share** was declared, payable on July 5, 2024[4](index=4&type=chunk)[14](index=14&type=chunk) [CEO Commentary & Market Outlook](index=1&type=section&id=CEO%20Commentary%20%26%20Market%20Outlook) CEO Michael P. Connors noted Q1 market uncertainty but anticipates future growth from AI implementation and cost transformation - The CEO believes the **market is turning** and will **gain momentum** over the year, despite clients slowing their spending pace in Q1 due to economic conditions and uncertainty around AI's impact[3](index=3&type=chunk) - **Significant future investments** are anticipated in **AI infrastructure and implementation** as the market moves from planning to execution[4](index=4&type=chunk) - There is a **notable increase in demand** for **cost and spend transformation services** as companies adapt to uncertain macroeconomic conditions[5](index=5&type=chunk) - The company is encouraged by the **continued growth** of its **recurring revenue business**, particularly in research, governance, and platforms like ISG Tango™[5](index=5&type=chunk) [First-Quarter 2024 Financial Results](index=2&type=section&id=First-Quarter%202024%20Results) Q1 2024 financial performance declined significantly, with revenues down 18% to $64.3 million, a swing to operating and net losses, and a 60% decrease in Adjusted EBITDA Q1 2024 Revenue by Geography (vs. Q1 2023) | Region | Q1 2024 Revenue (USD) | YoY Change | | :--- | :--- | :--- | | Americas | $40.8 million | -16% | | Europe | $17.8 million | -23% | | Asia Pacific | $5.6 million | -20% | | **Total** | **$64.3 million** | **-18%** | Q1 2024 GAAP Financial Performance (vs. Q1 2023) | Metric | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | Operating (Loss) Income | ($2.4 million) | $7.1 million | | Net (Loss) Income | ($3.4 million) | $3.5 million | | Diluted (Loss) EPS | ($0.07) | $0.07 | Q1 2024 Non-GAAP Financial Performance (vs. Q1 2023) | Metric | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | Adjusted Net Income | $0.7 million | $6.0 million | | Adjusted Diluted EPS | $0.01 | $0.12 | | Adjusted EBITDA | $4.4 million | $11.0 million | | Adjusted EBITDA Margin | 6.9% | 14.0% | [Cash Flow, Balance Sheet, and Capital Returns](index=2&type=section&id=Other%20Financial%20and%20Operating%20Highlights) ISG generated $2.3 million in Q1 2024 cash from operations, improved from prior year, maintained a $14.0 million cash balance, and reduced debt while returning capital - Generated **$2.3 million** of cash from operations in Q1 2024, compared to using **$3.4 million** in Q1 2023[10](index=10&type=chunk) - Cash balance was **$14.0 million** at March 31, 2024, down from **$22.6 million** at December 31, 2023[10](index=10&type=chunk) Q1 2024 Capital Allocation Activities | Activity | Amount (USD) | | :--- | :--- | | Dividends Paid | $2.4 million | | Share Repurchases | $2.5 million | | Debt Paid Down | $5.0 million | - Total debt outstanding was **reduced to $74.2 million** as of March 31, 2024, from **$79.2 million** at year-end 2023[11](index=11&type=chunk) [Business Outlook](index=3&type=section&id=Business%20Outlook) ISG provided Q2 2024 guidance, targeting revenues of $65-67 million and adjusted EBITDA of $7.0-8.0 million, reaffirming its capital allocation strategy [Q2 2024 Guidance](index=3&type=section&id=2024%20Second-Quarter%20Revenue%20and%20Adjusted%20EBITDA%20Guidance) Q2 2024 Guidance | Metric | Guidance Range (USD) | | :--- | :--- | | Revenues | $65 million - $67 million | | Adjusted EBITDA | $7.0 million - $8.0 million | - The company will continue to monitor macroeconomic factors like FX impact and inflation and adjust business plans accordingly[13](index=13&type=chunk) [Capital Allocation & Dividend](index=3&type=section&id=Quarterly%20Dividend) - The Board of Directors declared a Q2 dividend of **$0.045 per share**, payable on July 5, 2024, to shareholders of record as of June 14, 2024[14](index=14&type=chunk) - ISG's capital allocation strategy focuses on **reinvesting in the business**, **managing debt**, **returning capital to shareholders** (dividends and repurchases), and pursuing **strategic acquisitions**[14](index=14&type=chunk) [Financial Statements & Reconciliations](index=6&type=section&id=Financial%20Statements%20%26%20Reconciliations) This section provides detailed unaudited Q1 2024 financial statements, including condensed income statements, GAAP to Non-GAAP reconciliations, and constant currency comparisons [Condensed Statement of Income](index=6&type=section&id=Condensed%20Statement%20of%20Income%20and%20Comprehensive%20Income) Condensed Income Statement (in thousands) | Line Item | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | Revenues | $64,269 | $78,486 | | Operating (loss) income | $(2,370) | $7,050 | | (Loss) income before taxes | $(3,620) | $5,204 | | Net (loss) income | $(3,389) | $3,491 | [Reconciliation from GAAP to Non-GAAP](index=7&type=section&id=Reconciliation%20from%20GAAP%20to%20Non-GAAP) Reconciliation to Adjusted EBITDA (in thousands) | Line Item | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | Net (loss) income | $(3,389) | $3,491 | | Plus: Adjustments | $7,803 | $7,489 | | **Adjusted EBITDA** | **$4,414** | **$10,980** | Reconciliation to Adjusted Net Income (in thousands) | Line Item | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | Net (loss) income | $(3,389) | $3,491 | | Plus: Adjustments | $4,108 | $2,516 | | **Adjusted Net Income** | **$719** | **$6,007** | [Constant Currency Comparison](index=8&type=section&id=Selected%20Financial%20Data%20Constant%20Currency%20Comparison) Constant Currency Impact on Q1 2024 Results (in thousands) | Metric | As Reported (USD) | Constant Currency Impact (USD) | Adjusted for Constant Currency (USD) | | :--- | :--- | :--- | :--- | | Revenue | $64,269 | $(34) | $64,235 | | Operating income | $(2,370) | $(110) | $(2,480) | | Adjusted EBITDA | $4,414 | $(103) | $4,311 |

ISG cites GEP's continuing innovation with AI, low-code/no-code and sustainability tools Comes on the heels of also being recognized as leader in recently announced ISG study of procurement services Cements GEP as the ideal global partner for transforming procurement, supply chain and business operations CLARK, N.J., April 17, 2024 /PRNewswire/ -- GEP®, a leading provider of procurement and supply chain strategy, software and managed services to Fortune 500 and Global 2000 enterprises worldwide, announced ...

ISG cites GEP CONSULTING and GEP SERVICES for their ability to address complex categories in sourcing and spend management, and continued success in global engagements Cements GEP as the ideal global partner for transforming procurement, supply chain and business operations CLARK, N.J., April 16, 2024 /PRNewswire/ -- GEP®, a leading provider of AI-powered procurement and supply chain software, strategy, and managed services to Fortune 500 and Global 2000 enterprises worldwide, announced today that it has b ...

Revenue Performance - Record revenues of $291 million in 2023, representing a 2% increase year-over-year[170] - Recurring revenues reached $125 million, up 16% from the previous year, now accounting for 43% of total revenue[171] - Americas revenue increased by 6% to $177.1 million, while Europe and Asia Pacific revenues decreased by 3% and 10%, respectively[182] - The company aims to reach $150 million in recurring revenues by the end of 2025[171] Expenses and Costs - Total operating expenses rose by 8% to $276.4 million, driven by higher bad debt expense, license fees, and contract labor costs[183] - Interest expense increased from $3.2 million in 2022 to $6.2 million in 2023 due to rising interest rates[169] - Total other expense, net increased by $3.1 million to $(5.851) million in 2023, primarily due to higher interest expense and the write-off of deferred financing costs[191] - The company's effective tax rate for 2023 was 29.8%, up from 26.1% in 2022, driven by higher tax rates in foreign jurisdictions and non-deductible expenses in the U.S.[192] EBITDA and Net Income - Adjusted EBITDA for 2023 was $38 million, a decrease from the prior year[172] - Adjusted EBITDA for 2023 was $37.677 million, compared to $43.256 million in 2022 and $38.812 million in 2021[197] - Adjusted net income for 2023 was $20.076 million, down from $26.908 million in 2022 and $22.882 million in 2021[197] Cash Flow and Liquidity - Net cash provided by operating activities in 2023 was $12.272 million, compared to $11.146 million in 2022 and $41.942 million in 2011[201] - The company's cash, cash equivalents, and restricted cash decreased by $7.9 million to $22.8 million as of December 31, 2023[201] - The company repaid $84.2 million of outstanding debt and paid $8.7 million in cash dividends to shareholders in 2023[202] - The company anticipates that its current cash and ongoing cash flows from operations will be adequate to meet its working capital, capital expenditure, and debt financing needs for at least the next twelve months[206] Debt and Financing - The company amended its senior secured credit facility in 2023, increasing the revolving commitments from $54.0 million to $140.0 million[205] - The company's outstanding borrowings as of December 31, 2023, were $79.2 million, with a fair value of $79.8 million[205] - The company's debt to adjusted EBITDA ratio was 3.25, and it was in compliance with financial covenants under the 2023 Credit Agreement as of December 31, 2023[210] - The company had $79.2 million in total debt principal outstanding as of December 31, 2023, with all debt based on a floating base rate (SOFR)[227] - A 100 basis point change in interest rates would result in an annual change in the company's pre-tax results of operations by $0.8 million[226] - The company's debt to EBITDA ratio was 2.4 times as of December 31, 2023[228] Investments and Acquisitions - The company invested in training over 1,200 employees in AI technology during Q4 2023[172] - Acquisition of Ventana Research added over 40 new clients and nearly two dozen research professionals, enhancing ISG's recurring revenue streams[174] - ISG Tango™ platform launched to capture unadvised transaction activity and target the middle market, which spends $130 billion annually on technology and business services[179] Employee Benefits and Contributions - The company contributed $0.0 million to its 401(k) plan in 2023, compared to $2.1 million in 2022[211] Revenue Recognition Policies - The company's revenue recognition policy involves five steps: identifying the contract, performance obligations, transaction price, allocation, and recognition[214] - Revenue for fixed-fee contracts is recognized proportionally over the term of the contract based on labor hours incurred[217] - Revenue for managed service implementation contracts is recognized over time as a percentage of hours incurred[219] Foreign Currency and Risk Exposure - The impact of foreign currency translation on the company's Statement of Stockholders' Equity was $0.7 million in 2023[231] - The company's exposure to foreign currency risk includes the Euro, British Pound, and Australian dollar, with significant revenues derived from sales outside the United States[229]

Financial Data and Key Metrics Changes - The company reported a net loss of $2.9 million for Q4 2023, compared to a net income of $4.3 million in the prior year, resulting in a loss of $0.06 per fully diluted share [12] - For the full year, the company achieved record revenues of $291 million, a 2% increase despite the overall IT and business services industry declining by 6% [15] - Adjusted net income for Q4 was $3.1 million, down from $6.5 million in the prior year's fourth quarter [12][29] - The company generated nearly $10 million in cash during Q4, the highest amount since 2019 [16] Business Line Data and Key Metrics Changes - Recurring revenues grew by 16% year-over-year, reaching $125 million, which now represents 43% of total revenue, an increase of 500 basis points from the previous year [15] - Q4 revenues from the Americas were $40 million, down 8% year-over-year, while full-year revenues were $173 million, up 4% [18] - Q4 revenues from Europe were $20 million, down 15%, with full-year revenues flat at $90 million [19] - Q4 revenues from Asia Pacific were $6 million, down 12%, with full-year revenues down 5% to $28 million [27] Market Data and Key Metrics Changes - The company noted double-digit growth in consumer, public sector, energy, and utilities industry verticals in the Americas during Q4 [18] - In Europe, double-digit revenue growth was observed in the banking industry vertical and network and software advisory business [19] - The company is seeing demand for AI and digital transformation grow, with a 14% larger pipeline compared to the previous year [10] Company Strategy and Development Direction - The company launched a new enterprise AI advisory business to assist clients with AI adoption strategies [10] - ISG Tango, a new sourcing platform, was introduced to simplify and expedite sourcing processes, expected to capture more unadvised transaction activity and penetrate the mid-market [11][17] - The company aims to achieve a 17% adjusted EBITDA margin by the end of 2025, supported by the anticipated impact of ISG Tango [28] Management's Comments on Operating Environment and Future Outlook - Management indicated that slower client decision-making is influenced by macroeconomic conditions and the complexities surrounding AI adoption [23][88] - The company expects market conditions to improve as inflation cools and clients become more comfortable with AI investments [28] - Management remains optimistic about the future, anticipating an acceleration in client demand throughout 2024 [86] Other Important Information - The company recorded a reserve for bad debt of $4.8 million related to a Dubai-based client, which impacted Q4 results [20] - The balance sheet remains solid, with $22.6 million in cash at the end of Q4, up from $18.7 million at the end of Q3 [21] Q&A Session Summary Question: How willing is the company to negotiate on price and terms due to slower decision-making? - Management clarified that the slowdown is not primarily about price but rather clients needing more time to understand AI and its applications before making decisions [23] Question: What updates can be provided regarding the acquisition made last quarter? - Management expressed satisfaction with the integration process and noted that the acquisition is expected to enhance recurring revenue streams [34] Question: What verticals does management feel best about for the year? - Management highlighted manufacturing, utilities, and the public sector as strong growth areas, with expectations for double-digit growth [64] Question: How is the company addressing the slower decision-making environment? - Management acknowledged that all regions are experiencing slower decision-making but emphasized that the Americas performed well overall despite the challenges [68] Question: What is the outlook for the M&A environment? - Management indicated a continued focus on acquisitions that can add recurring revenue streams, particularly in digital and AI sectors [79]