Convergys Cuts Previously Reported Q4, FY13 GAAP Results - Quick Facts

(RTTNews) - Convergys Corp. (CVG) announced revised fourth quarter and full year 2013 GAAP results to account for tax expense associated with cash repatriation related to the acquisition of Stream Global Services, Inc.

Revised fourth-quarter 2013 GAAP net loss from continuing operations was $21.9 million or $0.21 per share, compared to GAAP net income from continuing operations of $24.5 million or $0.23 per share previously reported.

Revised full year 2013 GAAP net income from continuing operations was $58.5 million, or $0.54 per share, compared to GAAP net income from continuing operations of $104.9 million, or $0.96 per share, previously reported.

The company said that the revision had no impact on its revenue, operating income, cash flows or any non-GAAP measure previously presented.

As discussed in its January 6, 2014 acquisition announcement call, convergys plans to repatriate foreign cash on a tax efficient basis to partially finance the anticipated Stream transaction. The Company has determined that a tax provision relating to its plans to use offshore cash should be reflected in the fourth quarter of 2013. This resulted in additional fourth-quarter 2013 tax expense of $46 million.

As previously reported, fourth quarter and full year 2013 adjusted net income from continuing operations are $28 million, or $0.26 per share, and $117 million, or $1.07 per share, respectively. Adjusted results do not include acquisition-related impacts such as transaction costs, tax expense associated with cash repatriation, or impairment and pension settlement charges.