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Information Services Group(III) - 2024 Q4 - Annual Results
IIIInformation Services Group(III)2025-03-06 21:32

Financial Performance - Fourth-quarter GAAP revenues were 58million,atthetopendofguidance,withanetincomeof58 million, at the top end of guidance, with a net income of 3.0 million and GAAP EPS of 0.06[4]−AdjustedEBITDAforthefourthquarterwas0.06[4] - Adjusted EBITDA for the fourth quarter was 6.5 million, up 11% year-over-year, with an adjusted EBITDA margin of 11.3% compared to 8.9% in the prior year[15] - Full-year GAAP revenues totaled 248million,down15248 million, down 15% from the previous year, with adjusted net income of 10.0 million and adjusted EPS of 0.20[19]−RevenuesforQ42024were0.20[19] - Revenues for Q4 2024 were 57,777, a decrease of 12.8% from 66,186inQ42023[36]−OperatingincomeforQ42024was66,186 in Q4 2023[36] - Operating income for Q4 2024 was 179, compared to a loss of 3,522inQ42023[36]−NetincomeforQ42024was3,522 in Q4 2023[36] - Net income for Q4 2024 was 3,042, recovering from a net loss of 2,869inQ42023[36]−AdjustedEBITDAfortheyearendedDecember31,2024,was2,869 in Q4 2023[36] - Adjusted EBITDA for the year ended December 31, 2024, was 25,145, down from 37,677in2023,reflectingadecreaseof33.237,677 in 2023, reflecting a decrease of 33.2%[38] - Basic earnings per share for Q4 2024 were 0.06, unchanged from Q4 2023[36] Regional Performance - The Americas region saw a 6% revenue increase, excluding the divested automation unit, while Europe and Asia Pacific revenues decreased by 26% and 16%, respectively[10] Cash Flow and Debt Management - The company generated 6.6millionincashfromoperationsinthefourthquarterand6.6 million in cash from operations in the fourth quarter and 19.9 million for the full year, with a cash balance of 23.1millionatyear−end[21]−ISGreduceditsdebtby2523.1 million at year-end[21] - ISG reduced its debt by 25%, amounting to 20 million, bringing total outstanding debt to 59.2million[23]FutureOutlook−Thecompanyexpectsfirst−quarterrevenuesbetween59.2 million[23] Future Outlook - The company expects first-quarter revenues between 58 million and 59million,withadjustedEBITDAprojectedbetween59 million, with adjusted EBITDA projected between 6.5 million and 7.5million,representingatleasta457.5 million, representing at least a 45% increase from the prior-year first quarter[24] Strategic Initiatives - ISG's AI-centered repositioning aims to enhance its role in helping enterprises adopt AI at scale, with over 100 clients served in the past year[6][7] Dividends and Shareholder Returns - The company declared a first-quarter dividend of 0.045 per share, payable on March 28, 2025[25] Other Financial Metrics - The firm recorded a net gain of 2.3millionfromthesaleofitsautomationunitduringthefourthquarter,impactingnetincomepositively[12]−Thecompanyreportedagainonthesaleofbusinessamountingto2.3 million from the sale of its automation unit during the fourth quarter, impacting net income positively[12] - The company reported a gain on the sale of business amounting to 4,536 in Q4 2024[36] - Total operating expenses for Q4 2024 were 57,598,downfrom57,598, down from 69,708 in Q4 2023, indicating a reduction of 17.4%[36] - Interest expense decreased to 1,165inQ42024from1,165 in Q4 2024 from 1,513 in Q4 2023, a reduction of 23%[36] - The weighted average shares outstanding for diluted shares increased to 50,638 in Q4 2024 from 49,838 in Q4 2023[36] - The company experienced a foreign currency transaction gain of 17inQ42024,comparedtoalossof17 in Q4 2024, compared to a loss of 118 in Q4 2023[36]