BearingPoint (parent company: BearingPoint Europe Holdings B.V.) is an independent management and technology consulting firm. Following a post-bankruptcy management buyout in August 2009, BearingPoint has been operated by its European management team and is organized as a partnership. BearingPoint is a European-based company, but operates with a global reach.
The company filed for Chapter 11 in the U.S. Bankruptcy Court in the Southern District of New York on February 18, 2009, with $2.23 billion in total debt and $1.76 billion in total assets as of Sept. 30. The filing includes only the company's U.S. operations.
BearingPoint was late in filing its financial reports through 2007. The company is now current in filing its financial reports. The Company said its net loss for the first quarter ended March 31, 2007 narrowed as revenue grew and costs declined. The company recorded a net loss of $61.7 million, or 29 cents per share for the first quarter, compared with a loss of $72.7 million, or 34 cents per share, in the same period a year earlier.[14] The company recorded a net loss of $64.0 million, or 30 cents per share for the second quarter, compared with a loss of $2.85 million, or 1 cent per share, in the same period a year earlier. BearingPoint's shareholders' deficit was $365 million as of the close of the second quarter 2007 with a total accumulated deficit of $1.9 billion.[15] On Aug. 11 2008, the company reported its first net income in three years and, as of the third quarter of 2008, had reported operating income for three consecutive quarters.[16]. During the third quarter of 2008, BearingPoint said its net loss was $30.5 million or $0.14 a share, an improvement of $37.5 million compared to the third quarter of 2007. BearingPoint's shareholders' deficit was $469.2 million as of the close of the third quarter 2008.[17]
The company has defended itself in several court cases concerning allegations of contracting irregularities and disclosures that its officials overstated its profits in 2003. BearingPoint said it continues to work toward timely filings before the end of the 2007. It also said that its failure to timely file certain periodic reports with the SEC poses risks to its business, which could hurt its financial condition and results of operations.
The company has a 100-year history. It emerged as KPMG’s consulting services, created as a distinct business unit in 1997. KPMG had been providing consulting services to clients since its first contract with the US Navy prior to World War I. On January 31, 2000, KPMG formally spun off the consulting unit as KPMG Consulting, LLC. On February 8, 2001, the company went public on the NASDAQ market at $18 a share under the ticker "KCIN."
Over the next year and a half, the company acquired some of KPMG’s country consulting practices, plus country practices and hiring from Arthur Andersen’s business consulting unit. On October 2, 2002, the company was re-named BearingPoint and the next day began trading on the New York Stock Exchange under the ticker “BE.”
The company had been sponsoring golf professional Phil Mickelson, who had been wearing the BearingPoint/KPMG Consulting name on the front of his cap, since 2000. However, on Feb 1, 2008, the company announced on its website that it was ending its relationship with Mickelson, effective immediately[8]. Mickelson has since entered into a sponsorship relation with BearingPoint's former parent, KPMG.[9]
In 2008, it was ranked by BusinessWeek as one of the Top 75 places to launch a career[10] and by Defense News as one of the Top 100 Defense Contractors.[11]
On November 13, 2008, BearingPoint received notice from NYSE Regulation, Inc. (NYSE) that the NYSE had decided to suspend BearingPoint's common stock from trading prior to market opening on Monday, November 17, 2008.[12].
On February 18, 2009, BearingPoint filed for Chapter 11 bankruptcy protection. Unable to sustain the heavy debt load resulting from ill-advised expansion moves and costly management errors, the company negotiated debt for equity swaps with its creditors and zeroed the value of its common shares, wiping out existing investors.
BearingPoint, Inc. is one of the world's largest providers of management and technology consulting services to Global 2000 companies and government organizations in 60 countries worldwide. Based in McLean, Va., the firm has approximately 17,500 employees, and major practice areas focusing on the Public Services, Financial Services and Commercial Services markets. For nearly 100 years, BearingPoint professionals have built a reputation for knowing what it takes to help clients achieve their goals, and working closely with them to get the job done.
This release contains forward-looking statements. Words such as "may," "will," "could," "would," "should," "anticipate," "continue," "expects," "intends," "plans," "believes," "in the Company's view" and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict and which could materially and adversely affect the Company's financial condition and results of operations. Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results may differ from the forward-looking statements for many reasons, including, without limitation, the following:
The Company's continuing failure to file required periodic reports with the SEC could result in a loss of business, delisting from the New York Stock Exchange and defaults under the 2005 Credit Facility and debentures, if it ceases to obtain extensions for these filings. The Company's current cash resources might not be sufficient to meet its expected near-term cash needs (e.g., to settle lawsuits). The Company's 2005 Credit Facility imposes a number of restrictions which may negatively affect its ability to finance future needs, or do so on favorable terms. If the Company violates these restrictions, the Company could be in default under the 2005 Credit Facility or other indebtedness. If the Company's operating performance is materially and adversely affected, the Company may be required to post cash collateral to support obligations under the 2005 Credit Facility, as well as surety bonds, and the Company may be unable to obtain new surety bonds, letters of credit or bank guarantees in support of client engagements on acceptable terms. If the Company's borrowings under the 2005 Credit Facility or debentures were to be accelerated, there would be a material and adverse effect on the Company's financial condition. Downgrades of the Company's credit ratings could materially and adversely affect its financial condition. Please refer to Exhibit 99.1 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2004, as filed with the U.S. Securities and Exchange Commission and for additional information regarding risk factors.
You also noted that BearingPoint is focusing on solution sets in growth areas. He cited the example of a "digital oil field" solution that the company will bring to market in conjunction with Halliburton and Honeywell. In addition, BearingPoint will target electronic medical records, which he described as a market worth "tens of billions" of dollars going forward.
To sharpen focus and reduce costs, BearingPoint has reduced the number of industries it focuses on from five to three and consolidated or eliminated 38 percent of the market sectors within those industries. The company's three verticals are financial services; public services, which include government and health care; and commercial services, which cover areas such as consumer packaged goods and oil and gas.
BearingPoint also has moved to trim its client roster, pruning small or unprofitable accounts. The company plans to exit some countries in which it has practices.
All told, BearingPoint expects to achieve cost savings of $200 million to $300 million over the next 18 to 24 months, according to You.
As for attrition, the rate of managing director turnover declined from 17 percent in the first quarter to 15 percent in the third quarter. The company's global attrition rate, however, has increased to 28 percent from 26 percent during that time span.
The company filed for Chapter 11 in the U.S. Bankruptcy Court in the Southern District of New York on February 18, 2009, with $2.23 billion in total debt and $1.76 billion in total assets as of Sept. 30. The filing includes only the company's U.S. operations.
BearingPoint was late in filing its financial reports through 2007. The company is now current in filing its financial reports. The Company said its net loss for the first quarter ended March 31, 2007 narrowed as revenue grew and costs declined. The company recorded a net loss of $61.7 million, or 29 cents per share for the first quarter, compared with a loss of $72.7 million, or 34 cents per share, in the same period a year earlier.[14] The company recorded a net loss of $64.0 million, or 30 cents per share for the second quarter, compared with a loss of $2.85 million, or 1 cent per share, in the same period a year earlier. BearingPoint's shareholders' deficit was $365 million as of the close of the second quarter 2007 with a total accumulated deficit of $1.9 billion.[15] On Aug. 11 2008, the company reported its first net income in three years and, as of the third quarter of 2008, had reported operating income for three consecutive quarters.[16]. During the third quarter of 2008, BearingPoint said its net loss was $30.5 million or $0.14 a share, an improvement of $37.5 million compared to the third quarter of 2007. BearingPoint's shareholders' deficit was $469.2 million as of the close of the third quarter 2008.[17]
The company has defended itself in several court cases concerning allegations of contracting irregularities and disclosures that its officials overstated its profits in 2003. BearingPoint said it continues to work toward timely filings before the end of the 2007. It also said that its failure to timely file certain periodic reports with the SEC poses risks to its business, which could hurt its financial condition and results of operations.
The company has a 100-year history. It emerged as KPMG’s consulting services, created as a distinct business unit in 1997. KPMG had been providing consulting services to clients since its first contract with the US Navy prior to World War I. On January 31, 2000, KPMG formally spun off the consulting unit as KPMG Consulting, LLC. On February 8, 2001, the company went public on the NASDAQ market at $18 a share under the ticker "KCIN."
Over the next year and a half, the company acquired some of KPMG’s country consulting practices, plus country practices and hiring from Arthur Andersen’s business consulting unit. On October 2, 2002, the company was re-named BearingPoint and the next day began trading on the New York Stock Exchange under the ticker “BE.”
The company had been sponsoring golf professional Phil Mickelson, who had been wearing the BearingPoint/KPMG Consulting name on the front of his cap, since 2000. However, on Feb 1, 2008, the company announced on its website that it was ending its relationship with Mickelson, effective immediately[8]. Mickelson has since entered into a sponsorship relation with BearingPoint's former parent, KPMG.[9]
In 2008, it was ranked by BusinessWeek as one of the Top 75 places to launch a career[10] and by Defense News as one of the Top 100 Defense Contractors.[11]
On November 13, 2008, BearingPoint received notice from NYSE Regulation, Inc. (NYSE) that the NYSE had decided to suspend BearingPoint's common stock from trading prior to market opening on Monday, November 17, 2008.[12].
On February 18, 2009, BearingPoint filed for Chapter 11 bankruptcy protection. Unable to sustain the heavy debt load resulting from ill-advised expansion moves and costly management errors, the company negotiated debt for equity swaps with its creditors and zeroed the value of its common shares, wiping out existing investors.
BearingPoint, Inc. is one of the world's largest providers of management and technology consulting services to Global 2000 companies and government organizations in 60 countries worldwide. Based in McLean, Va., the firm has approximately 17,500 employees, and major practice areas focusing on the Public Services, Financial Services and Commercial Services markets. For nearly 100 years, BearingPoint professionals have built a reputation for knowing what it takes to help clients achieve their goals, and working closely with them to get the job done.
This release contains forward-looking statements. Words such as "may," "will," "could," "would," "should," "anticipate," "continue," "expects," "intends," "plans," "believes," "in the Company's view" and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict and which could materially and adversely affect the Company's financial condition and results of operations. Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results may differ from the forward-looking statements for many reasons, including, without limitation, the following:
The Company's continuing failure to file required periodic reports with the SEC could result in a loss of business, delisting from the New York Stock Exchange and defaults under the 2005 Credit Facility and debentures, if it ceases to obtain extensions for these filings. The Company's current cash resources might not be sufficient to meet its expected near-term cash needs (e.g., to settle lawsuits). The Company's 2005 Credit Facility imposes a number of restrictions which may negatively affect its ability to finance future needs, or do so on favorable terms. If the Company violates these restrictions, the Company could be in default under the 2005 Credit Facility or other indebtedness. If the Company's operating performance is materially and adversely affected, the Company may be required to post cash collateral to support obligations under the 2005 Credit Facility, as well as surety bonds, and the Company may be unable to obtain new surety bonds, letters of credit or bank guarantees in support of client engagements on acceptable terms. If the Company's borrowings under the 2005 Credit Facility or debentures were to be accelerated, there would be a material and adverse effect on the Company's financial condition. Downgrades of the Company's credit ratings could materially and adversely affect its financial condition. Please refer to Exhibit 99.1 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2004, as filed with the U.S. Securities and Exchange Commission and for additional information regarding risk factors.
You also noted that BearingPoint is focusing on solution sets in growth areas. He cited the example of a "digital oil field" solution that the company will bring to market in conjunction with Halliburton and Honeywell. In addition, BearingPoint will target electronic medical records, which he described as a market worth "tens of billions" of dollars going forward.
To sharpen focus and reduce costs, BearingPoint has reduced the number of industries it focuses on from five to three and consolidated or eliminated 38 percent of the market sectors within those industries. The company's three verticals are financial services; public services, which include government and health care; and commercial services, which cover areas such as consumer packaged goods and oil and gas.
BearingPoint also has moved to trim its client roster, pruning small or unprofitable accounts. The company plans to exit some countries in which it has practices.
All told, BearingPoint expects to achieve cost savings of $200 million to $300 million over the next 18 to 24 months, according to You.
As for attrition, the rate of managing director turnover declined from 17 percent in the first quarter to 15 percent in the third quarter. The company's global attrition rate, however, has increased to 28 percent from 26 percent during that time span.
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