INC Research Reports Fourth Quarter and Full Year 2015 Results
Highlights
- Book-to-bill of 1.2x for the fourth quarter of 2015 and 1.3x for the year ended December 31, 2015.
- Net new business awards of
$297.4 million for the fourth quarter and$1.18 billion for the year ended December 31, 2015. - Adjusted net service revenue of
$241.4 million for the fourth quarter, representing growth of 12.9% and$914.7 million for the year ended December 31, 2015, representing growth of 14.2%. - Adjusted diluted earnings per share of
$0.54 for the fourth quarter, representing growth of 107.7% and$2.00 for the year ended December 31, 2015, representing growth of 141.0%. - GAAP diluted earnings per share of
$0.53 for the fourth quarter and$1.95 for the year ended December 31, 2015.
"INC’s continued focus on therapeutic expertise, strong site relationships and operational excellence through our proven Trusted Process® yielded strong results for our customers and shareholders in 2015," said Chief Executive Officer
Fourth Quarter and Full Year 2015 Results
Adjusted net service revenue for the three months ended December 31, 2015 increased by 12.9% to
Income from operations for the three months ended December 31, 2015 increased by 115.1% to
The Company's income from operations includes certain expenses and transactions that it believes are not representative of its core operations. Excluding these items, adjusted income from operations was
The Company reported net income for the three months ended December 31, 2015 of
Adjusted net income for the three months ended December 31, 2015 was
Adjusted EBITDA for the three months ended December 31, 2015 increased 40.3% to
Important disclosures about and reconciliations of non-GAAP measures, including adjusted net service revenue, adjusted income from operations, adjusted operating margin, adjusted net income and adjusted diluted earnings per share, EBITDA and adjusted EBITDA, to the corresponding GAAP measures are provided below.
New Business Awards and Backlog
Backlog grew by 14.1% to
Business Outlook
The Company's full-year guidance for 2016 is outlined in the following table. The guidance takes into account a number of factors, including current foreign currency exchange rates, expected interest and tax rates and the Company’s overall outlook.
| Guidance Issued | |||||||
| 2/25/2016 | |||||||
| Low | High | ||||||
| Net service revenue | $ | 1,005 | million | $ | 1,025 | million | |
| GAAP diluted EPS | $ | 1.69 | $ | 1.84 | |||
| Adjusted diluted EPS | $ | 2.30 | $ | 2.45 | |||
Important disclosures about and reconciliations of non-GAAP measures, including adjusted net income and diluted adjusted earnings per share, to the corresponding GAAP measures are provided below.
Webcast and Conference Call Details
An archived replay of the conference call will be available online at investor.incresearch.com after 1:00 p.m. EST on February 25, 2016. In addition, an audio replay will be available for one week following the call and will be accessible by dialing +1 (855) 859-2056 within
About
Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this press release, including our 2016 guidance and long-term targets, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Actual results might differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include, but are not limited to: fluctuations in our financial results; our ability to maintain or generate new business awards; our backlog not being indicative of future revenues and our ability to realize the anticipated future revenue reflected in our backlog; our ability to adequately price our contracts and not overrun cost estimates; our customer or therapeutic area concentration; general and international economic, political and other risks, including currency and stock market fluctuations; our ability to increase our market share, grow our business and execute our growth strategies; and the other risk factors set forth in our Form 10-K for the year ended December 31, 2015 and other
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with GAAP, this press release contains certain non-GAAP financial measures, including Adjusted Net Service Revenue, Adjusted Income from Operations, Adjusted Operating Margin, Adjusted Net Income (including Adjusted Diluted Earnings per Share), EBITDA and Adjusted EBITDA. A “non-GAAP financial measure” is generally defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of operations, balance sheets or statements of cash flows of the Company.
The Company defines Adjusted Net Service Revenue as net service revenue excluding the impact of higher-than-normal change order activity.
The Company defines Adjusted Income from Operations as income from operations excluding the impact of revenue from higher-than-normal change order activity and certain expenses and transactions that the Company believes are not representative of its core operations, including management fees that terminated in connection with the Company's initial public offering, acquisition-related amortization, restructuring costs, transaction expenses, non-cash share-based compensation expense, contingent consideration related to acquisitions and asset impairment charges. The Company defines Adjusted Operating Margin as adjusted income from operations as a percentage of adjusted net service revenue.
The Company defines Adjusted Net Income (including Adjusted Diluted Earnings per Share) as net income (loss) (including diluted earnings per share) excluding debt refinancing expenses, loss on extinguishment of debt, other (income) expense and the items excluded from adjusted income from operations mentioned previously. After giving effect to these items and other unusual tax impacts during the period, the Company has also included an adjustment to its income tax rate to reflect the expected long-term income tax rate.
EBITDA represents earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA represents EBITDA, further adjusted to exclude the impact of revenue from higher-than-normal change order activity and certain expenses and transactions that the Company believes are not representative of its core operations, including management fees that terminated in connection with the Company's initial public offering, restructuring costs, transaction expenses, non-cash share-based compensation expense, contingent consideration related to acquisitions, asset impairment charges, loss on extinguishment of debt and other (income) expense. The Company presents EBITDA and Adjusted EBITDA because it believes they are useful metrics for investors as they are commonly used by investors, analysts and debt holders to measure the Company's ability to service its debt obligations, fund capital expenditures and meet working capital requirements.
Each of the non-GAAP measures noted above are used by management and the Board to evaluate the Company's core operating results as they exclude certain items whose fluctuations from period-to-period do not necessarily correspond to changes in the core operations of the business. Adjusted Net Service Revenue, Adjusted Income from Operations, Adjusted Operating Margin and Adjusted Net Income (including Adjusted Diluted Earnings per Share) are used by management and the Board to assess the Company's business. The Company believes these measures are also used by investors and analysts, to measure its performance. Adjusted EBITDA is also a useful metric for management, investors and debt holders to measure the Company's ability to service its debt obligations.
Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP. Also, other companies might calculate these measures differently. Investors are encouraged to review the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP measures included in this press release and the accompanying tables.
Investor Relations Contact:
Vice President, Investor Relations
Phone: +1 (919) 745-2745
Email: Investor.Relations@incresearch.com
Press/Media Contact:
Senior Director, Corporate Communications
Phone: +1 (513) 763-1380
Email: Corporate.Communications@incresearch.com
| INC Research Holdings, Inc. and Subsidiaries | |||||||||||||||
| GAAP Condensed Consolidated Statements of Operations | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| (unaudited) | |||||||||||||||
| Net service revenue | $ | 241,356 | $ | 213,725 | $ | 914,740 | $ | 809,728 | |||||||
| Reimbursable out-of-pocket expenses | 161,529 | 113,930 | 484,499 | 369,071 | |||||||||||
| Total revenue | 402,885 | 327,655 | 1,399,239 | 1,178,799 | |||||||||||
| Cost and operating expenses: | |||||||||||||||
| Direct costs | 143,416 | 133,957 | 542,404 | 515,059 | |||||||||||
| Reimbursable out-of-pocket expenses | 161,529 | 113,930 | 484,499 | 369,071 | |||||||||||
| Selling, general, and administrative | 43,255 | 40,811 | 156,609 | 145,143 | |||||||||||
| Restructuring and other costs | 219 | 66 | 1,785 | 6,192 | |||||||||||
| Transaction expenses | 715 | 5,860 | 1,637 | 7,902 | |||||||||||
| Asset impairment charges | — | — | 3,931 | 17,245 | |||||||||||
| Depreciation | 4,597 | 4,991 | 18,140 | 21,619 | |||||||||||
| Amortization | 9,461 | 9,587 | 37,874 | 32,924 | |||||||||||
| Total operating expenses | 363,192 | 309,202 | 1,246,879 | 1,115,155 | |||||||||||
| Income from operations | 39,693 | 18,453 | 152,360 | 63,644 | |||||||||||
| Other income (expense), net: | |||||||||||||||
| Interest income | 35 | 23 | 192 | 249 | |||||||||||
| Interest expense | (2,953 | ) | (11,183 | ) | (15,640 | ) | (53,036 | ) | |||||||
| Loss on extinguishment of debt | — | (46,750 | ) | (9,795 | ) | (46,750 | ) | ||||||||
| Other income (expense), net | (281 | ) | 1,512 | 3,857 | 7,689 | ||||||||||
| Total other (expense) income, net | (3,199 | ) | (56,398 | ) | (21,386 | ) | (91,848 | ) | |||||||
| Income (loss) before provision for income taxes | 36,494 | (37,945 | ) | 130,974 | (28,204 | ) | |||||||||
| Income tax (expense) benefit | (5,838 | ) | (11,835 | ) | (13,927 | ) | 4,734 | ||||||||
| Net income (loss) | 30,656 | (49,780 | ) | 117,047 | (23,470 | ) | |||||||||
| Class C common stock dividends | — | — | — | (375 | ) | ||||||||||
| Redemption of New Class C common stock | — | (3,375 | ) | — | (3,375 | ) | |||||||||
| Net income (loss) attributable to common shareholders | $ | 30,656 | $ | (53,155 | ) | $ | 117,047 | $ | (27,220 | ) | |||||
| Earnings per share attributable to common shareholders: | |||||||||||||||
| Basic | $ | 0.55 | $ | (0.92 | ) | $ | 2.02 | $ | (0.51 | ) | |||||
| Diluted | $ | 0.53 | $ | (0.92 | ) | $ | 1.95 | $ | (0.51 | ) | |||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 55,729 | 57,504 | 57,888 | 53,301 | |||||||||||
| Diluted | 58,010 | 57,504 | 60,146 | 53,301 | |||||||||||
| INC Research Holdings, Inc. and Subsidiaries | |||||||||||||||
| Reconciliation of GAAP to Non-GAAP Measures | |||||||||||||||
| (in thousands) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Adjusted Net Service Revenue: | |||||||||||||||
| Net service revenue | $ | 241,356 | $ | 213,725 | $ | 914,740 | $ | 809,728 | |||||||
| Change order adjustment (a) | — | — | — | (9,000 | ) | ||||||||||
| Adjusted net service revenue | $ | 241,356 | $ | 213,725 | $ | 914,740 | $ | 800,728 | |||||||
| Adjusted Income from Operations: | |||||||||||||||
| GAAP income from operations | $ | 39,693 | $ | 18,453 | $ | 152,360 | $ | 63,644 | |||||||
| Amortization (b) | 9,461 | 9,587 | 37,874 | 32,924 | |||||||||||
| Restructuring and other costs (c) | 219 | 66 | 1,785 | 6,192 | |||||||||||
| Transaction expenses (d) | 715 | 5,860 | 1,637 | 7,902 | |||||||||||
| Asset impairment charges (e) | — | — | 3,931 | 17,245 | |||||||||||
| Share-based compensation (f) | 1,786 | 1,065 | 5,074 | 3,370 | |||||||||||
| Contingent consideration treated as compensation expense (g) | 113 | 275 | 559 | 918 | |||||||||||
| Monitoring and advisory fees (h) | — | 42 | — | 462 | |||||||||||
| Change order adjustment (a) | — | — | — | (9,000 | ) | ||||||||||
| Adjusted Income from Operations | $ | 51,987 | $ | 35,348 | $ | 203,220 | $ | 123,657 | |||||||
| GAAP Operating Margin | 16.4 | % | 8.6 | % | 16.7 | % | 7.9 | % | |||||||
| Adjusted Operating Margin | 21.5 | % | 16.5 | % | 22.2 | % | 15.4 | % | |||||||
| EBITDA and Adjusted EBITDA: | |||||||||||||||
| Net income (loss) as reported | $ | 30,656 | $ | (49,780 | ) | $ | 117,047 | $ | (23,470 | ) | |||||
| Interest expense, net | 2,918 | 11,160 | 15,448 | 52,787 | |||||||||||
| Income tax expense (benefit) | 5,838 | 11,835 | 13,927 | (4,734 | ) | ||||||||||
| Depreciation | 4,597 | 4,991 | 18,140 | 21,619 | |||||||||||
| Amortization | 9,461 | 9,587 | 37,874 | 32,924 | |||||||||||
| EBITDA | 53,470 | (12,207 | ) | 202,436 | 79,126 | ||||||||||
| Restructuring and other costs (c) | 219 | 66 | 1,785 | 6,192 | |||||||||||
| Transaction expenses (d) | 715 | 5,860 | 1,637 | 7,902 | |||||||||||
| Asset impairment charges (e) | — | — | 3,931 | 17,245 | |||||||||||
| Share-based compensation (f) | 1,786 | 1,065 | 5,074 | 3,370 | |||||||||||
| Contingent consideration treated as compensation expense (g) | 113 | 275 | 559 | 918 | |||||||||||
| Monitoring and advisory fees (h) | — | 42 | — | 462 | |||||||||||
| Other (income) expense (i) | 281 | (1,512 | ) | (3,857 | ) | (7,689 | ) | ||||||||
| Loss on extinguishment of debt (j) | — | 46,750 | 9,795 | 46,750 | |||||||||||
| Change order adjustment (a) | — | — | — | (9,000 | ) | ||||||||||
| Adjusted EBITDA | $ | 56,584 | $ | 40,339 | $ | 221,360 | $ | 145,276 | |||||||
| Adjusted EBITDA Margin | 23.4 | % | 18.9 | % | 24.2 | % | 18.1 | % | |||||||
| INC Research Holdings, Inc. and Subsidiaries | |||||||||||||||
| Reconciliation of GAAP to Non-GAAP Measures (Continued) | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Adjusted Net Income: | |||||||||||||||
| Net income (loss) as reported | $ | 30,656 | $ | (49,780 | ) | $ | 117,047 | $ | (23,470 | ) | |||||
| Amortization (b) | 9,461 | 9,587 | 37,874 | 32,924 | |||||||||||
| Restructuring and other costs (c) | 219 | 66 | 1,785 | 6,192 | |||||||||||
| Transaction expenses (d) | 715 | 5,860 | 1,637 | 7,902 | |||||||||||
| Asset impairment charges (e) | — | — | 3,931 | 17,245 | |||||||||||
| Share-based compensation (f) | 1,786 | 1,065 | 5,074 | 3,370 | |||||||||||
| Contingent consideration treated as compensation expense (g) | 113 | 275 | 559 | 918 | |||||||||||
| Monitoring and advisory fees (h) | — | 42 | — | 462 | |||||||||||
| Other (income) expense (i) | 281 | (1,512 | ) | (3,857 | ) | (7,689 | ) | ||||||||
| Loss on extinguishment of debt (j) | — | 46,750 | 9,795 | 46,750 | |||||||||||
| Change order adjustment (a) | — | — | — | (9,000 | ) | ||||||||||
| Adjust income tax to normalized rate (k) | (11,826 | ) | 2,885 | (53,671 | ) | (30,957 | ) | ||||||||
| Adjusted Net Income | $ | 31,405 | $ | 15,238 | $ | 120,174 | $ | 44,647 | |||||||
| Shares used in computing GAAP diluted net income (loss) per share | 58,010 | 57,504 | 60,146 | 53,301 | |||||||||||
| Effect of certain securities considered anti-dilutive under GAAP (l) | — | 1,284 | — | 557 | |||||||||||
| Diluted weighted average common shares outstanding | 58,010 | 58,788 | 60,146 | 53,858 | |||||||||||
| Adjusted Diluted EPS | $ | 0.54 | $ | 0.26 | $ | 2.00 | $ | 0.83 | |||||||
(a) Net service revenue for the year ended December 31, 2014 has been adjusted by
(b) Represents the amortization of intangible assets primarily for customer relationships and backlog.
(c) Restructuring and other costs consist of: (i) severance costs associated with a reduction of workforce in line with the Company's expectations of future business operations, and (ii) lease obligation and termination costs in connection with abandonment and closure of redundant facilities.
(d) Represents fees associated with the Company's May, August and December 2015 secondary common stock offerings, costs associated with the Company's IPO, debt placement and refinancing, costs incurred in connection with business combinations and potential acquisitions, and other corporate transactions.
(e) Represents impairment of goodwill and long-lived assets associated with the Company's Phase I Services reporting unit and Global Consulting, a component of the Clinical Development segment.
(f) Represents share-based compensation expense related to awards granted under equity incentive plans.
(g) Represents contingent consideration expense incurred as a result of acquisitions and accounted for as compensation expense under GAAP.
(h) Represents monitoring and advisory fees paid to affiliates of Avista Capital Partners, L.P. in the periods prior to the Company's November 2014 initial public offering, as well as reimbursements of expenses paid to affiliates of Avista Capital Partners, L.P. and affiliates of Teachers' Private Capital pursuant to the Expense Reimbursement Agreement. These arrangements were terminated upon completion of the Company's initial public offering.
(i) Represents other (income) expense comprised primarily of foreign exchange gains and losses.
(j) Represents loss on extinguishment of debt associated with the Company's debt refinancing activities in May 2015 and November 2014.
(k) Adjustment for the income tax effect of the non-GAAP adjustments made to arrive at adjusted net income using the estimated effective tax rate of 36% in 2015 and 37% in 2014. In 2015 and 2014, the Company's effective tax rate has been adjusted in order to reflect the removal of the tax impact of its valuation allowances recorded against its deferred tax assets and changes in the assertion to indefinitely reinvest the undistributed earnings of foreign subsidiaries. Historically, the Company has recorded a valuation allowance against some of its deferred tax assets, but believes that these valuation allowances cause significant fluctuations in its financial results that are not indicative of the Company's underlying financial performance. Specifically, the majority of the Company's revenue was generated in jurisdictions in which it recognized no tax expense or benefit due to changes in this valuation allowance. In 2014 the Company reversed the valuation allowance in one of its foreign jurisdictions, net of establishment of additional valuation allowances in certain jurisdictions, creating a tax benefit of $18.2 million. During 2015, the Company reversed the valuation allowance in its U.S. jurisdiction, creating a tax benefit of $31.9 million. In addition, 2015 has also been adjusted for the elimination of a $2.6 million benefit from the release of a reserve for a pre-acquisition uncertain tax position associated with Kendle International, Inc., a company which was acquired in July 2011.
(l) Adjustment represents the weighted average number of equity-based awards issued under the Company's equity incentive plans calculated using the treasury stock method that were excluded from shares used in computing GAAP diluted net loss per share due to reporting a net loss under GAAP for the period.
| INC Research Holdings, Inc. and Subsidiaries | |||||||||||||||
| Reconciliation of GAAP to Non-GAAP Full-Year 2016 Guidance | |||||||||||||||
| (in millions, except per share data) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Adjusted Net Income | Adjusted Diluted Earnings Per Share |
||||||||||||||
| Low | High | Low | High | ||||||||||||
| Net income and diluted earnings per share | $ | 95.0 | $ | 103.0 | $ | 1.69 | $ | 1.84 | |||||||
| Adjustments: | |||||||||||||||
| Amortization (a) | 37.7 | 37.7 | |||||||||||||
| Share-based compensation expense (a) | 13.3 | 13.3 | |||||||||||||
| Contingent consideration treated as compensation expense (a) | 0.5 | 0.5 | |||||||||||||
| Restructuring expenses (a) | 3.7 | 3.7 | |||||||||||||
| Other (a) | (0.2 | ) | 0.2 | ||||||||||||
| Income tax effect of above adjustments (b) | (21.0 | ) | (21.4 | ) | |||||||||||
| Adjusted net income and adjusted diluted earnings per share | $ | 129.0 | $ | 137.0 | $ | 2.30 | $ | 2.45 | |||||||
(a) Amounts are estimates with an estimated range of +/- 5% and are presented gross without the benefit of income tax reduction.
(b) Income tax expense is calculated and the adjustments are tax-affected at an approximate rate of 34%, which is the midpoint of our range for the expected income tax rate of 33% to 35%. This adjustment also excludes the impact of the valuation allowances recorded against the Company's deferred tax assets and other unusual tax impacts during the period. Historically, the Company recorded a valuation allowance against some of its deferred tax assets, but believes that these valuation allowances cause significant fluctuations in its financial results that are not indicative of the Company's underlying financial performance.
| INC Research Holdings, Inc. and Subsidiaries | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (in thousands, except share data) | |||||||
| December 31, 2015 | December 31, 2014 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 85,011 | $ | 126,453 | |||
| Restricted cash | 452 | 505 | |||||
| Accounts receivable: | |||||||
| Billed, net | 158,315 | 130,270 | |||||
| Unbilled | 139,697 | 118,101 | |||||
| Current portion of deferred income taxes | — | 16,177 | |||||
| Prepaid expenses and other current assets | 38,571 | 34,758 | |||||
| Total current assets | 422,046 | 426,264 | |||||
| Property and equipment, net | 44,813 | 43,725 | |||||
| Goodwill | 553,008 | 556,863 | |||||
| Intangible assets, net | 152,340 | 190,359 | |||||
| Deferred income taxes, less current portion | 12,073 | 15,665 | |||||
| Other long-term assets | 26,939 | 8,489 | |||||
| Total assets | $ | 1,211,219 | $ | 1,241,365 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 22,497 | $ | 16,548 | |||
| Accrued liabilities | 111,262 | 111,655 | |||||
| Deferred revenue | 311,029 | 246,902 | |||||
| Current portion of long-term debt | 29,804 | 3,615 | |||||
| Capital lease obligations | — | 452 | |||||
| Total current liabilities | 474,592 | 379,172 | |||||
| Long-term debt, less current portion | 472,035 | 412,190 | |||||
| Deferred income taxes | 28,066 | 30,368 | |||||
| Other long-term liabilities | 19,092 | 27,426 | |||||
| Total liabilities | 993,785 | 849,156 | |||||
| Commitments and contingencies | |||||||
| Shareholders' equity: | |||||||
| Preferred stock, $0.01 par value; 30,000,000 shares authorized, 0 shares issued and outstanding at December 31, 2015 and 2014, respectively | — | — | |||||
| Common stock, $0.01 par value; 600,000,000 shares authorized, 53,871,484 and 61,233,850 shares issued and outstanding at December 31, 2015 and 2014, respectively | 539 | 612 | |||||
| Additional paid-in capital | 559,910 | 634,946 | |||||
| Accumulated other comprehensive loss | (41,543 | ) | (26,200 | ) | |||
| Accumulated deficit | (301,472 | ) | (217,149 | ) | |||
| Total shareholders' equity | 217,434 | 392,209 | |||||
| Total liabilities and shareholders' equity | $ | 1,211,219 | $ | 1,241,365 | |||
| INC Research Holdings, Inc. and Subsidiaries | |||||||
| Consolidated Statements of Cash Flows | |||||||
| (in thousands) | |||||||
| Twelve Months Ended December 31, |
|||||||
| 2015 | 2014 | ||||||
| Operating activities | |||||||
| Net income (loss) | $ | 117,047 | $ | (23,470 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 56,014 | 54,543 | |||||
| Stock repurchase costs | 1,637 | — | |||||
| Amortization of capitalized loan fees | 1,346 | 5,700 | |||||
| Share-based compensation | 5,074 | 3,370 | |||||
| Provision (recovery) for doubtful accounts | (144 | ) | 2,435 | ||||
| Deferred income taxes | 4,134 | (14,837 | ) | ||||
| Foreign currency adjustments | (795 | ) | (7,390 | ) | |||
| Asset impairment charges | 3,931 | 17,245 | |||||
| Loss on extinguishment of debt and other debt refinancing costs | 9,795 | 49,227 | |||||
| Excess income tax benefits from share-based awards | (975 | ) | — | ||||
| Other adjustments | (82 | ) | (853 | ) | |||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable billed and unbilled | (54,073 | ) | (24,259 | ) | |||
| Accounts payable and accrued expenses | 8,186 | 25,743 | |||||
| Deferred revenue | 68,500 | 42,742 | |||||
| Other assets and liabilities | (14,855 | ) | 1,251 | ||||
| Net cash provided by operating activities | 204,740 | 131,447 | |||||
| Investing activities | |||||||
| Acquisition of business, net of cash acquired | — | (2,302 | ) | ||||
| Purchase of property and equipment | (21,111 | ) | (25,551 | ) | |||
| Net cash used in investing activities | (21,111 | ) | (27,853 | ) | |||
| Financing activities | |||||||
| Proceeds from issuance of long-term debt | 525,000 | 288,365 | |||||
| Payments of debt financing costs | (4,987 | ) | (5,364 | ) | |||
| Payments on long-term debt | (475,001 | ) | (164,095 | ) | |||
| Proceeds from revolving credit facility | 45,000 | — | |||||
| Repayment of revolving credit facility | (15,000 | ) | — | ||||
| Payment of notes payable and breakage fees | — | (336,385 | ) | ||||
| Payments related to business combinations | (973 | ) | — | ||||
| Principal payments toward capital lease obligations | (452 | ) | (2,680 | ) | |||
| Payments of stock repurchase costs | (1,423 | ) | — | ||||
| Payments for repurchase of common stock | (285,000 | ) | (38 | ) | |||
| Proceeds from the issuance of common stock | — | 156,113 | |||||
| Proceeds from the exercise of stock options | 3,656 | 145 | |||||
| Payments related to tax withholding for share-based compensation | (3,194 | ) | — | ||||
| Excess income tax benefits from share-based awards | 975 | — | |||||
| Dividends paid | — | (375 | ) | ||||
| Redemption of New Class C and D common stock | — | (3,384 | ) | ||||
| Net cash used in financing activities | (211,399 | ) | (67,698 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | (13,672 | ) | (6,415 | ) | |||
| Net change in cash and cash equivalents | (41,442 | ) | 29,481 | ||||
| Cash and cash equivalents at the beginning of the year | 126,453 | 96,972 | |||||
| Cash and cash equivalents at the end of the year | $ | 85,011 | $ | 126,453 | |||