PRGX Global Inc Largest Shareholder Dumps Entire Stake

PRGX Global Inc’s largest shareholder has sold their entire stake in the company.Blum Capital Partners, L.P. owned close to 11% of PRGX Global Inc (NASDAQ:PRGX), or  2,752,354 shares, according to the fund’s third quarter 13F. According to a 13D filing today with the SEC, Blum Capital Partners now owns no shares in the company.

PRGX Global Inc (NASDAQ:PRGX), together with its subsidiaries, is an analytics-powered information and professional services company.

On the the company’s conference call in October, Romil Bahl – PRGX Global, Inc. – President and CEO stated:

PRGX Global is approaching the end of the third year of its five-year transformation journey that is transforming what was a single service company focused on only the retail industry sector into a multi-service company targeting multiple industries. The key value outcome our services remain focused on is finding more ways to make money for our clients. Real bottom line profits, leveraging the huge amount of information our clients provide us to drive our core profit recovery, or recovery audit service.

The key financial outcome we are driving towards over that same five-year journey is growing our adjusted EBITDA from just over $21 million in 2010 to the range of $40 million to $45 million in adjusted EBITDA in 2014. As many of you have seen already, last night, we delivered quarterly results that are in line with this financial goal. Our adjusted EBITDA for the third quarter was a little bit north of $8.8 million, which is the highest quarterly EBITDA we have delivered, not just in 2012, but since the fourth quarter of 2008.

Further, this EBITDA performance represents an improvement of 27.2% over Q3 2011 and our gross margins have improved 5.5% over the same period. Also, this brings our 2012 year-to-date adjusted EBITDA to $23.2 million compared to $18.1 million over the same period in 2011, representing growth of 28.6%. And our earnings per share or EPS results are also up. We delivered $0.10 per share this quarter compared to $0.02 of EPS for the same period last year. For the year-to-date, our EPS stands at $0.15 compared to $0.06 for the same period of 2011.

For the nine months ended 30 September 2012, PRGX Global Inc (NASDAQ:PRGX) revenues increased 1% to $155.4M. Net income increased from $1.5M to $3.9M. Revenues reflect New Services segment increase of 22% to $24.6M, Recovery Audit Services-Americas segment increase of 4% to $91.6M. Net income benefited from New Services segment loss decrease of 53% to $2.3M, Recovery Audit Services-Americas segment income increase of 9% to $21.9M.

Disclosure: No position