ISG Reports Fourth Quarter and Full Year Increases

Research and advisory firm Information Services Group (ISG) has reported an 8% increase in fourth quarter revenues to $53.4m, and a 10% rise in full-year revenues to $211.0m.

Founded in 2007 as an acquisition vehicle, ISG first bought outsourcing advisory firm TPI, then in 2011 acquired UK-based benchmarking and analytics specialist Compass and public sector advisor STA Consulting.

During Q4, operating income was $3m, compared with $1.7m in Q4 2012; adjusted net income was up 22% to $2.1m from $1.7m; and adjusted EBITDA increased 16% to $5.2m. By geography, revenues increased 22% in Europe to $21.3m and 1% in the Americas to $27.1m, but were down 5% in Asia Pacific to $5.1m.

For the full year, operating income increased $5.1m to $11.7m, and adjusted EBITDA increased 24% to $22.6m from $18.2m the previous year. In the Americas, revenues were up 9% to $114.6m, and in Europe up 17% to $75.1m, offsetting a 10% decline in Asia Pacific to $21.3m.

Chairman & CEO Michael Connors (pictured) comments: 'We are pleased with our 10% full-year revenue growth. We achieved these results while more than doubling our cash flow generation and strengthening our balance sheet, evidence that our strategy to focus on a single mission - delivering operational excellence - is paying off.'

For 2014, the firm is anticipating revenues of between $215m and $225m and adjusted EBITDA of between $23m and $26m.

Web site: www.isg-one.com .