Information Services Group(III) - 2024 Q4 - Annual Results

Financial Performance - Fourth-quarter GAAP revenues were $58 million, at the top end of guidance, with a net income of $3.0 million and GAAP EPS of $0.06[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 $248 million, down 15% from the previous year, with adjusted net income of $10.0 million and adjusted EPS of $0.20[19] - Revenues for Q4 2024 were $57,777, a decrease of 12.8% from $66,186 in Q4 2023[36] - Operating income for Q4 2024 was $179, compared to a loss of $3,522 in Q4 2023[36] - Net income for Q4 2024 was $3,042, recovering from a net loss of $2,869 in Q4 2023[36] - Adjusted EBITDA for the year ended December 31, 2024, was $25,145, down from $37,677 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 $6.6 million in cash from operations in the fourth quarter and $19.9 million for the full year, with a cash balance of $23.1 million at year-end[21] - ISG reduced its debt by 25%, amounting to $20 million, bringing total outstanding debt to $59.2 million[23] Future Outlook - The company expects first-quarter revenues between $58 million and $59 million, with adjusted EBITDA projected between $6.5 million and $7.5 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 $2.3 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, down from $69,708 in Q4 2023, indicating a reduction of 17.4%[36] - Interest expense decreased to $1,165 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 $17 in Q4 2024, compared to a loss of $118 in Q4 2023[36]