Convergys Q4 Profit Down - Quick Facts

(RTTNews) - Convergys Corp. (CVG) said that its fourth-quarter net income declined to $24.9 million from the prior year's $32.0 million, with earnings per share decreasing to $0.23 from $0.29 last year.

GAAP net income from continuing operations was $24.5 million or $0.23 per share, compared with $30.2 million or $0.27 per share, in the same period last year.

GAAP fourth-quarter 2013 results include $3 million for transaction expenses related to the acquisition of Stream Global Services, Inc., as well as a non-cash $1 million net settlement charge related to pension and other postemployment benefit plans.

Adjusted net income from continuing operations was $27.9 million or $0.26 per share, compared with $27.7 million, or $0.25 per share, in the same period last year.

Revenue was $527.3 million, a four percent increase compared with $508.8 million in the same period last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share and revenues of $527.33 million for the quarter. Analysts' estimates typically exclude special items.

Convergys paid a $6 million quarterly dividend in January to holders of record at the close of business on December 27, 2013. The Board of Directors of the company also approved the next dividend payment of $0.06 per share which is scheduled to be made on April 04, 2014, to shareholders of record at the close of business on March 21, 2014.

Convergys expectations for 2014 include: Highly accretive contributions to revenue and earnings from Stream once the acquisition closes; Organic revenue and earnings improvement approximately similar to the two percent revenue growth and 30-basis point EBITDA margin expansion in 2013. Convergys plans to provide 2014 guidance for the combined company in due course after the acquisition closes.