CSG Systems International Reports Second Quarter 2022 Results
DENVER
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August 03, 2022 02:01 PM Mountain Daylight Time
Signed One of the Largest Telecom Wins in CSG History with New Latin American Customer
Successfully Migrated ~75% of New Charter Subscribers Through Q2 2022
Returned $55 Million to Shareholders via Share Repurchases & Dividends in H1 2022
CSG (NASDAQ: CSGS) today reported results for the quarter ended June 30, 2022.
Financial Results:
Second quarter 2022 financial results:
Total revenue was $262.2 million and total non-GAAP adjusted revenue was $243.5 million.
GAAP operating income was $7.3 million, or 2.8% of total revenue, and non-GAAP operating income was $36.7 million, or 15.1% of non-GAAP adjusted revenue.
GAAP earnings per diluted share (EPS) was $0.17 and non-GAAP EPS was $0.84.
Cash flows used in operations were ($7.7) million, with a non-GAAP free cash flow deficit of ($17.0) million.
Shareholder Returns:
- CSG declared its quarterly cash dividend of $0.265 per share of common stock, or a total of approximately $9 million, to shareholders.
- During the second quarter of 2022, CSG repurchased under its stock repurchase program, approximately 360,000 shares of its common stock for approximately $22 million.
“With the backdrop of a turbulent macro-economic environment, Team CSG grew first half sales bookings more than 10% year-over-year, won several exciting new customer deals, and successfully migrated approximately 75% of the new Charter subscribers, paving the way for 3.6% year-over-year growth in both revenue and non-GAAP EPS in the first half,” said Brian Shepherd, President and Chief Executive Officer of CSG. “We also encountered challenges that eroded non-GAAP adjusted operating margin more than 1% point and impacted our cash flow in the quarter which CSG leadership is already addressing with a meaningful margin improvement initiative begun in Q2 to ensure we have strong CSG-like profitability in Q3, Q4, and beyond.”
Financial Overview (unaudited)
(in thousands, except per share amounts and percentages):
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| Quarter Ended June 30 |
| Six Months Ended June 30 | |||||||||||||
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GAAP Results: |
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Revenue |
| $ | 262,168 |
| $ | 255,134 |
| 2.8 | % | $ | 526,568 |
| $ | 508,253 |
| 3.6% | |
Operating Income |
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| 7,283 |
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| 32,166 |
| (77.4 | %) |
| 23,698 |
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| 63,543 |
| (62.7%) | |
Operating Margin Percentage |
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| 2.8 | % |
| 12.6 | % |
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| 4.5 | % |
| 12.5 | % |
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