PRGX Global, Inc. (NASDAQ:PRGX), a global leader in Recovery Audit and Spend Analytics services, today announced its unaudited financial results for the third quarter and nine months ended September 30, 2016.

“Overall, we continue to make good progress on our transformation journey as demonstrated by our performance in the third quarter, which reflects meaningful improvement in both the top and bottom lines. Revenue from continuing operations grew 7.4% and Adjusted EBITDA increased 39%, compared to the same period in 2015 on a constant dollar basis,” said Ron Stewart, president and chief executive officer.

“Within our core business, our global retail recovery audit service line grew 12.9% on a year over year constant dollar basis, with every region posting an increase. The outstanding performance of the global team, combined with investments in technology and process improvements are driving increased value for clients and significantly strengthening our financial performance,” continued Stewart.

“Results in our emerging segment, Adjacent Services, were dampened by delays in the contracting process. We have now started working on new projects and our new business pipeline is strong and growing,” said Stewart.

“In line with our long term strategy, we recently announced the signing of definitive agreements to acquire Cost & Compliance Associates and Lavante, Inc. We expect these acquisitions to provide significant growth opportunities as they enhance our current business and accelerate our SIM service line,” continued Stewart.

“As we look further into the fourth quarter and beyond, we believe the performance of our global teams, the investments in talent and technology and the integration of these strategic acquisitions will accelerate long term sustainable revenue and adjusted EBITDA growth,” concluded Stewart.

Consolidated Results from Continuing Operations for the Three Months Ended September 30, 2016

Consolidated revenue from continuing operations for the third quarter of 2016 was $35.1 million compared to $33.4 million for the same period in 2015, an improvement of $1.7 million. Revenue for the Recovery Audit Services – Americas segment increased 7.2% in the third quarter of 2016 compared to the same period in 2015. Revenue for the Recovery Audit Services – Europe/Asia-Pacific segment increased 8.5% in the third quarter of 2016 compared to the same period in 2015. Revenue for the Adjacent Services segment decreased $0.65 million in the third quarter of 2016 compared to the same period in 2015.

On a constant dollar basis adjusted for changes in foreign exchange rates, consolidated revenue from continuing operations increased by 7.4% in the third quarter of 2016 compared to the same period in 2015. Revenue for the Recovery Audit Services – Americas and the Recovery Audit Services – Europe/Asia-Pacific

segments increased 7.3% and 14.8%, respectively, in the third quarter of 2016 on a constant dollar basis compared to the same period in 2015. On a constant dollar basis, revenue for the Adjacent Services segment decreased $0.45 million in the third quarter of 2016 compared to the same period in 2015.

Total cost of revenue from continuing operations for the third quarter of 2016 was $22.4 million, or 63.6% of revenue, compared to $23.5 million, or 70.4% of revenue, in the same period last year. This improvement as a percentage of revenue was primarily attributable to the increased revenue, coupled with operational cost and productivity improvements.

SG&A expenses from continuing operations for the third quarter of 2016 were $9.9 million compared to $8.3 million in the prior year period. This increase in SG&A expenses is primarily a result of investments in sales and operational personnel, increased U.S. healthcare benefit costs, and legal expenses primarily associated with the recently announced Cost & Compliance Associates and Lavante, Inc. acquisitions.

Consolidated net income from continuing operations for the three months ended September 30, 2016 was $2.2 million, or $0.10 per basic and diluted share, compared to a net loss of $2.9 million, or $0.11 per basic and diluted share, for the same period in 2015.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) from continuing operations for the third quarter of 2016 was $4.7 million, or 13.5% of revenue, compared to $3.3 million, or 10.0% of revenue, for the third quarter of 2015, a $1.4 million or 42.2% improvement. Schedule 3 attached to this press release provides a reconciliation of net income (loss) to each of EBIT (Earnings Before Interest and Taxes), EBITDA and Adjusted EBITDA.

Consolidated Results from Continuing Operations for the Nine Months Ended September 30, 2016

Consolidated revenue from continuing operations for the nine months ended September 30, 2016 was $101.7 million compared to $103.3 million for the same period in 2015. Revenue for the Recovery Audit Services – Americas segment for the nine months ended September 30, 2016 increased 0.9% compared to the same period in 2015. Recovery Audit Services – Europe/Asia-Pacific segment revenue for the nine months ended September 30, 2016 decreased 2.3% compared to the same period in 2015. Revenue for the Adjacent Services segment decreased $1.7 million for the nine months ended September 30, 2016 compared to the same period in 2015.

On a constant dollar basis adjusted for changes in foreign exchange rates, consolidated revenue from continuing operations for the nine months ended September 30, 2016 increased by 0.9% compared to the same period in 2015. On a constant dollar basis, revenue for the Recovery Audit Services – Americas segment for the nine months ended September 30, 2016 increased 2.9% compared to the same period in 2015 after excluding revenue from a large client that filed bankruptcy in 2015. Revenue for the Recovery Audit Services – Europe/Asia-Pacific segment for the nine months ended September 30, 2016 increased 3.1% on a constant dollar basis compared to the same period in 2015. On a constant dollar basis, revenue for the Adjacent Services segment for the nine months ended September 30, 2016 decreased $0.3 million compared to the same period in 2015 after excluding revenue from the document service business which was sold in the third quarter of 2015.

Total cost of revenue from continuing operations for the nine months ended September 30, 2016 was $67.4 million, or 66.3% of revenue, compared to $70.8 million, or 68.5% of revenue, for the same period in 2015.

SG&A expenses from continuing operations for the nine months ended September 30, 2016 were $28.4 million compared to $25.4 million in the prior year period.

Consolidated net income from continuing operations for the nine months ended September 30, 2016 was $2.1 million, or $0.09 per basic and diluted share, compared to a net loss of $3.3 million, or $0.13 per basic and diluted share, for the same period in 2015.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) from continuing operations for the nine months ended September 30, 2016 was $10.3 million, or 10.1% of revenue, compared to $12.5 million, or 12.1% of revenue, in the 2015 period. Schedule 3 attached to this press release provides a reconciliation of net income (loss) to each of EBIT (Earnings Before Interest and Taxes), EBITDA and Adjusted EBITDA.

Cash Flow and Liquidity

Net cash provided by operating activities for the third quarter of 2016 was $0.7 million compared to $4.9 million in the third quarter of the prior year, and $6.2 million for the nine months ended September 30, 2016 compared to $12.4 million in the same period in the prior year. At September 30, 2016, the Company had unrestricted cash and cash equivalents of $13.2 million, no borrowings against its $20.0 million revolving credit facility, and no bank debt outstanding.

Stock Repurchase Program

Since the February 2014 announcement of the Company’s stock repurchase program, as of September 30, 2016, the Company has repurchased 8.6 million shares, or 28.7% of its common stock outstanding on the date of the announcement. As previously announced in October 2015, the Company’s Board of Directors approved a $10 million increase (to $50 million) in the program and extended the duration of the program to December 31, 2016. The Company repurchased approximately 0.9 million shares of its outstanding common stock for an aggregate cost of $3.8 million in the nine months ended September 30, 2016. As of October 20, 2016, the Company had approximately 21.8 million shares of common stock outstanding.

Third Quarter Earnings Call

As previously announced, management will hold a conference call later this morning at 8:30 AM (Eastern time) to discuss the Company’s third quarter 2016 financial results. To access the conference call, listeners in the U.S. and Canada should dial (877) 755-7423 at least 5 minutes prior to the start of the conference. Listeners outside the U.S. and Canada should dial (678) 894-3069. To be admitted to the call, listeners should use passcode 2764145.

This teleconference will also be audiocast on the Internet at www.prgx.com (click on “Events & Presentations” under “Investors”). A replay of the audiocast will be available at the same location on

www.prgx.com beginning approximately two hours after the conclusion of the live audiocast, extending through December 31, 2016. Please note that the Internet audiocast is “listen-only.” Microsoft Windows Media Player is required to access the live audiocast and the replay and can be downloaded from www.microsoft.com/windows/mediaplayer.

About PRGX

PRGX Global, Inc. is a global leader in Recovery Audit and Spend Analytics services. With over 1,400 employees, the Company serves clients in more than 30 countries and provides its services to 75% of the top 20 global retailers and over 20% of the top 50 companies in the Fortune 500. PRGX delivers more than $1 billion in cash flow improvement for its clients each year. The creator of the recovery audit industry more than 40 years ago, PRGX continues to innovate through technology and expanded service offerings. In addition to Recovery Audit, the Company provides Contract Compliance, Spend Analytics and Supplier Information Management services to improve clients’ financial performance and manage risk. For additional information on PRGX, please visit www.prgx.com