Conduent(US:CNDT)2021-08-04 16:00Financial Performance - Revenue for Q2 2021 was $1,026 million, a slight increase from $1,016 million in Q2 2020, while total revenue for the six months ended June 30, 2021, was $2,054 million, down from $2,067 million in the same period last year[10]. - Net income for Q2 2021 was $12 million, compared to a net loss of $51 million in Q2 2020, indicating a significant improvement in profitability[10]. - Basic earnings per share for Q2 2021 was $0.05, recovering from a loss of $0.25 per share in Q2 2020[10]. - Total operating costs and expenses decreased to $1,007 million in Q2 2021 from $1,080 million in Q2 2020, reflecting a cost reduction strategy[10]. - The company reported a comprehensive income of $15 million for Q2 2021, compared to a loss of $47 million in the same quarter last year[12]. - Total consolidated revenue for Q2 2021 was $1,026 million, a slight increase from $1,016 million in Q2 2020, representing a growth of 1%[37]. - Net income for Q2 2021 was $1 million, a significant improvement from a net loss of $100 million in Q2 2020[19]. - Adjusted EBITDA for Q2 2021 was $128 million, compared to $110 million in Q2 2020, reflecting a growth of 16%[52]. - The company reported a total operating costs and expenses of $2,044 million in Q2 2021, down from $2,182 million in Q2 2020[114]. - The effective tax rate for Q2 2021 was 38.2%, up from 20.3% in Q2 2020[130]. Cash and Liquidity - Cash and cash equivalents as of June 30, 2021, were $450 million, indicating a stable liquidity position[17]. - Cash provided by operating activities was $103 million, compared to cash used in operating activities of $118 million in the same period last year[19]. - Cash, cash equivalents, and restricted cash at the end of the period were $403 million, down from $437 million at the end of Q2 2020[19]. - As of June 30, 2021, total cash and cash equivalents were $397 million, down from $450 million as of December 31, 2020[160]. - The company believes its cash on hand, projected cash flow from operations, and revolving line of credit will meet business obligations for at least the next twelve months[162]. Debt and Liabilities - Long-term debt remained significant at $1,420 million, highlighting the company's leverage position[17]. - Payments on debt totaled $79 million in Q2 2021, compared to $28 million in the same quarter last year[19]. - As of June 30, 2021, the Company had long-term debt of $1,340 million, a decrease from $1,420 million as of December 31, 2020[59]. - The Company redeemed all previously outstanding $34 million Senior Notes due 2024 on May 1, 2021, incurring a $2 million loss on extinguishment of debt[59]. - Total debt outstanding as of June 30, 2021, was $1.4 billion, with $89 million due within one year[161]. Revenue Segments - Revenue from Commercial Industries segment was $503 million in Q2 2021, down from $520 million in Q2 2020, a decrease of 3%[50]. - Government Services segment revenue increased to $338 million in Q2 2021 from $331 million in Q2 2020, a growth of 2%[50]. - Transportation segment revenue rose to $185 million in Q2 2021, compared to $165 million in Q2 2020, an increase of 12%[50]. - Commercial Industries revenue for Q2 2021 decreased to $503 million, a decline from $520 million in Q2 2020, representing a 3.3% decrease[140]. - Government Services revenue for Q2 2021 increased to $338 million, up from $331 million in Q2 2020, reflecting a 2.1% increase[140]. - Transportation revenue for Q2 2021 was $185 million, compared to $165 million in Q2 2020, marking a 12.1% increase[140]. Operational Efficiency - The company continues to focus on improving efficiencies and reducing costs through its business process services[28]. - The company experienced increased volumes in its Government Services Solutions offering, primarily due to Federal stimulus payments[116]. - Unallocated costs for Q2 2021 increased due to higher employee costs, partially offset by efficiency initiatives[153]. Market Risks and Legal Matters - The ongoing impact of the COVID-19 pandemic continues to pose risks and uncertainties for future operations and financial results[2]. - The impact of the COVID-19 pandemic remains a consideration, with ongoing evaluations of estimates and assumptions affecting financial reporting[31]. - The company is involved in a class action lawsuit alleging violations of federal securities laws, with claims seeking unspecified monetary damages for the period from February 21, 2018, to November 6, 2018[78]. - The company is engaged in litigation with Cognizant Business Services Corporation, seeking damages in excess of $150 million due to alleged breaches of contract[83]. - The company continues to cooperate with federal and state agencies regarding various matters related to student loans, with potential for future legal actions[84]. - The company intends to vigorously defend itself against ongoing litigation and believes it has strong defenses against the claims made[80]. Business Growth - New business total contract value (TCV) signings reached $775 million in Q2 2021, a 24% increase year-over-year[108]. - Annual recurring revenue signings were $115 million in Q2 2021, a 10% increase compared to the prior year[108]. - The Company signed $775 million of new business in Q2 2021, a 24% increase compared to $623 million in Q2 2020[155]. - Total Contract Value (TCV) signings for the six months ended June 30, 2021, reached $1,131 million, a 19% increase from $947 million in the same period of 2020[156]. - The total new business pipeline at the end of June 30, 2021, was $21.0 billion, down from $22.0 billion at the end of June 30, 2020[159].