CSG Systems International(CSGS) - 2019 Q3 - Quarterly Report

Revenue and Growth - As of September 30, 2019, the total revenues were $251.4 million, a 17.9% increase from $213.1 million in the same quarter of 2018[25] - Cloud and related solutions revenue for the quarter was $224.3 million, up 20.3% from $186.5 million in Q3 2018[25] - Approximately 88% of the company's revenues were generated in U.S. dollars during the nine months ended September 30, 2019[174] Financial Position - Cash and cash equivalents as of September 30, 2019 were primarily composed of institutional money market funds, commercial paper, and time deposits[27] - As of September 30, 2019, cash and cash equivalents were $160.6 million, up from $139.3 million as of December 31, 2018, reflecting a 15.5% increase[169] - The carrying value of goodwill as of September 30, 2019 was $253.1 million, down from $255.8 million at the beginning of the year[37] - Long-term debt as of September 30, 2019, was $348.2 million, slightly down from $352.3 million as of December 31, 2018[40] Investments and Acquisitions - The company made an additional $4 million investment in a payment technology and services company, holding an 8% noncontrolling interest valued at $6.6 million[33] - The company acquired Forte for approximately $93 million, with potential future earn-out payments of $18.8 million tied to performance-based goals[62] - The company accrued $2.5 million related to potential earn-out payments as of September 30, 2019[62] Expenses and Amortization - The total amortization expense for other intangible assets for the nine months ended September 30, 2019 was $17.3 million, compared to $13.4 million in the same period of 2018[37] - Total amortization expense for client contract costs was $3.7 million for Q3 2019, compared to $6.0 million for Q3 2018, and $16.1 million for the nine months ended September 30, 2019, compared to $17.3 million for the same period in 2018[38] - Stock-based compensation expense for Q3 2019 was $4.8 million, compared to $4.6 million in Q3 2018, indicating a 4.3% increase[75] Lease Obligations - The company recorded additional assets and liabilities of approximately $80 million related to the adoption of new lease accounting standards[36] - Total future minimum lease payments under non-cancelable leases as of September 30, 2019, were $111.7 million, with current operating lease liabilities at $22.9 million[55] - Operating lease expense for Q3 2019 was $6.8 million, with total net lease expense for the nine months ended September 30, 2019, at $20.6 million[53] - The weighted-average remaining lease term for operating leases was 57 months, with a weighted-average discount rate of 4.40%[53] Shareholder Returns - Basic weighted-average common shares for the quarter ended September 30, 2019, were 32,016 thousand, down from 32,507 thousand in the same quarter of 2018, representing a decrease of 1.5%[64] - The company repurchased approximately 92,000 shares for $4.7 million at an average price of $51.09 per share during Q3 2019, compared to 138,000 shares for $5.5 million at an average price of $39.87 per share in Q3 2018[66] - Cash dividends declared for the nine months ended September 30, 2019, totaled $22.0 million, an increase from $21.0 million in the same period of 2018[70] - The company has 5.1 million shares remaining available for repurchase under the Stock Repurchase Program as of September 30, 2019[67] Debt and Financing - The company made $5.6 million in principal repayments on its $150 million term loan during the nine months ended September 30, 2019[41] - The interest rate on the 2018 Term Loan was 3.60% as of September 30, 2019, down from 4.30% at December 31, 2018[40] - The company has a $200 million revolving loan facility available with no borrowings outstanding as of September 30, 2019[41] Other Financial Metrics - The aggregate amount of the transaction price allocated to remaining performance obligations is approximately $454 million, with an expected recognition of about 85% by the end of 2021[24] - Deferred revenue recognized during the quarter was $5.7 million, and $35.5 million for the nine months ended September 30, 2019[25] - Short-term investments as of September 30, 2019 were valued at $11.3 million, a decrease from $23.6 million at the end of 2018[31] - As of September 30, 2019, the net amount of client contract costs was $42.9 million, down from $37.3 million as of December 31, 2018[38] - The fair value of the 2016 Convertible Notes was estimated at $261.1 million as of September 30, 2019[172] - The conversion rate for the 2016 Convertible Notes was adjusted to 17.5727 shares per $1,000 principal amount, equivalent to a conversion price of $56.91 per share[45]