CG l Sh h ld i. CTG Annual Shareholders Meeting May 13, 2009 AHEAD OF THE CURVE

Similar documents
Transcription:

CG l Sh h ld i CTG Annual Shareholders Meeting May 13, 2009 AHEAD OF THE CURVE

AGENDA Report on shareholder vote Business update dt Questions and answers 2

AHEAD OF THE CURVE Report on Shareholder h Vote

AHEAD OF THE CURVE Business Update

FORWARD-LOOKING STATEMENTS This presentation contains certain forward looking statements concerning the Company s current expectations as to future growth. These statements are based upon a review of industry reports, current business conditions in the areas where the Company does business, the availability of qualified professional staff, and other factors that involve risk and uncertainty. As such, actual results may differ materially in response to a change in such factors. 5

BUSINESS STRATEGY AND REVENUE MIX 8% 35% 30% 68% 27% 32% Technology Services Healthcare Financial Services Other Fastestgrowing market Staffing Solutions Highermargin offering Q1 2009 revenue: $74.6 million 6

HEALTHCARE TARGETS AND GROWTH DRIVERS Providers Payers Life Sciences Demographics Aging global population Extended life expectancy Costs Rising at twice the rate of inflation Regulatory compliance Increased government mandates 7

Growth market HEALTHCARE PROVIDERS Growth Drivers Inadequate medical record systems Cost control and efficiency initiatives Hospital mergers and consolidations CTG Solutions IT requirements Advisory and package implementations Electronic medical records High KLAS Enterprises* ratings 8 * 2009 KLAS Enterprises, LLC. (an independent healthcare services evaluation organization) All rights reserved. www.klasresearch.com

Growth market HEALTHCARE PAYERS Growth Drivers Cost reduction initiatives for insurers Industry consolidation CTG Solutions RHIO* development and integration Electronic medical records FACETS ERP system for claims adjudication 9 *Regional Health Information Organization

Growth market LIFE SCIENCES Growth Drivers Increasing use of medicines New drug developments Significant ifi regulatory compliance CTG Solutions Testing and validation Staffing 10

Future growth focus HEALTHCARE Healthcare offerings launching in 2009: Fraud, waste, and abuse Healthcare underwriting application IT medical model that improves patient outcomes while lowering cost Electronic medical records $19 billion in the U.S. stimulus package for electronic medical records Significant multi year opportunity for CTG 11

Growth market TECHNOLOGY SERVICE PROVIDERS Growth Drivers Procurement of 50% of U.S. IT staffing Large-volume/low-cost model Geographic presence Industry shifting to large staffing providers Strong IBM relationship: 31% of 2008 total business CTG Solution Strategic staffing 12

13 MAJOR CLIENTS

Quarterly results FIRST QUARTER 2009 REVENUE AND EPS Revenue (in millions) Earnings per share $86.7 $0.09 $0.09 $74.6 2008 Q1 2009 Q1 2008 Q1 2009 Q1 14

Quarterly results SECOND QUARTER 2009 REVENUE AND EPS GUIDANCE Revenue (in millions) Earnings per share $94.1 $0.13 $67.5 $0.08 2008 Q2 Midpoint 2009 Q2 guidance 2008 Q2 Midpoint 2009 Q2 guidance 15

Annual results REVENUE GROWTH (in millions) $294.5 $327.3 $325.3 $353.2 $285.0 $237.1 2004 2005 2006 2007 2008 Midpoint i 2009 guidance 16 * Four year compound annual growth rate

Annual results OPERATING MARGIN Increasing mix of solutions business 3.7% 3.3% 1.3% 1.7% 2.1% 2.0% 2004 2005 2006 2007 2008 Midpoint i 2009 guidance 17

Annual results EARNINGS GROWTH $0.49 $0.35 $0.14 $0.21 $0.25 $0.08 2004 2005 2006 2007 2008 Midpoint i 2009 guidance 18 * Three year compound annual growth rate

FINANCIAL STRENGTH AND STABILITY Strong cash flow: Q1 09 TTM EBITDA $15.3 million Strong financial position No outstanding debt at 12/31/08 and 4/03/09 $35 million revolving credit facility in place through April 2011 Quality receivables 58 days of sales outstanding 19

STRATEGIC GOALS Target faster growing major markets Healthcare market is primary focus Grow more rapidly than industry average Return solutions business to 50% of mix Expand operating margins to 6% 7% Develop in demand, niche, repeatable solutions 20

SUMMARY Strong financial position Healthcare over 25% of total revenue Three new healthcareofferings introduced in the second half of 2009 $19 billion in the U.S. stimulus package for electronic medical records 21

AHEAD OF THE CURVE Questions

Thank You! AHEAD OF THE CURVE