PRGX Global, Inc. (NASDAQ:PRGX) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 05:00 pm ET

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PRGX Global, Inc. (NASDAQ:PRGX) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the PRGX Global, Inc. Second Quarter 2020 Earnings Conference Call. [Operator Instructions] After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference to your speaker today, Kurt Abkemeier, CFO. Please go ahead, sir.

Executive
Kurt Abkemeier

Thank you, Victor and good afternoon to all of those on the call. Let us note at the outset that certain statements in this conference call may be considered forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act. These statements include statements relating to management's views with respect to future events and financial performance that are based on management's current expectations and beliefs and are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements.

For additional information, on these factors, please refer to PRGX Global Inc.'s filings with the Securities and Exchange Commission, including, but not limited to, its reports on Forms 10-K and 10-Q. PRGX undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation also contains references to certain non-GAAP financial measures, such as EBIT, EBITDA and adjusted EBITDA, metrics that we use internally to measure our operating performance. A reconciliation between these non-GAAP measures and net income or loss, the most directly comparable GAAP measure is available under the Investor Relations portion of our website at prgx.com.

I will now turn the call over to Ron.

Executive
Ron Stewart

Thanks, Kurt. Well, we had a great quarter, continuing to deliver on our promises of fiscal discipline, improved productivity and expanded operating leverage. We achieved another milestone delivering our second highest quarter adjusted EBITDA in seven years. And very important to all of us, it was the third strong quarter in a row, which demonstrates consistency in our business performance and fulfillment of our commitment to improved profitability and cash flow that we laid out to The Street a year ago. Establishing a track record of strong operating and financial performance has been our primary objective as we work to deliver improved client and shareholder value.

So let me give you an overview of the quarter. I'll take a few minutes to share a few notable highlights of the quarter, which Kurt will discuss in greater detail. Revenue was relatively stable at $39 million during the first full quarter in a COVID-19 environment, a decrease of 5.4% on a constant dollar basis. This is a testament to the composition of our revenue streams and the disciplined focus of our audit teams as we learn to operate effectively in this challenging environment.

We achieved $7.6 million of adjusted EBITDA, which was primarily driven by our focus on continued productivity enhancements over the last year. In addition, we had positive net income of $400,000, which was our first positive second quarter net