Acquisition Update: On June 18, 2021, Sykes
Enterprises, Incorporated ("SYKES" or the “Company”) (NASDAQ:
SYKE), a leading full life cycle provider of global customer
experience management services, multichannel demand generation and
digital transformation, and Sitel Group®, a leading global provider
of customer experience (“CX”) products and solutions, announced
they have entered into a definitive merger agreement (the “Merger
Agreement”) in which Sitel Group®, through a wholly owned
subsidiary, will acquire all of SYKES’ outstanding shares of common
stock at a purchase price of $54 per share in a transaction valued
at approximately $2.2 billion on a fully diluted basis. Subsequent
to the announcement, SYKES filed a Definitive Proxy statement with
the Securities and Exchange Commission announcing the date of the
Special Meeting of shareholders to vote on the transaction. This
meeting is scheduled for August 24, 2021 at 8 AM ET at the
Rivergate Tower, 400 N. Ashley Drive, Suite 320, 3rd Floor,
Conference Room A, Tampa, FL 33602. Sitel Group® expects to obtain
all required regulatory approvals and to close the transaction
shortly after the shareholder meeting.
Sykes Enterprises, Incorporated announced today
its financial results for the second-quarter ended June 30,
2021.
Second Quarter 2021 Financial
Highlights
- Second quarter 2021 revenues of
$448.9 million increased $32.1 million, or 7.7%, from $416.8
million in the comparable quarter last year, driven by demand from
existing and new program expansions as well as new client wins. In
addition, growth in the quarter also reflects the revenue
contribution of the acquisition of the Taylor Media Corp., owner of
The Penny Hoarder, (“TMC”/“TPH”), which closed at year-end
2020
- Second quarter 2021 comparable
revenue growth of 7.7% spanned the healthcare, financial services,
technology, and other verticals, more than offsetting the lower
demand in the transportation & leisure as well as
communications verticals
- Non-GAAP second quarter 2021
organic constant currency revenues (see section titled “Non-GAAP
Financial Measures” for an explanation and see Exhibit 11 for
reconciliation) increased 0.3% comparably driven largely by the
aforementioned factors
- Second quarter 2021 operating
income increased 9.2% to $29.7 million on a comparable basis with
operating margin remaining virtually unchanged at 6.6% versus 6.5%
for the comparable period last year. On a non-GAAP basis (see
Exhibit 6 for reconciliation), which excludes the impact of the
impairment of right-of-use (“ROU”) assets and other fixed assets
related to COVID-19 driven facility exits, acquisition-related
intangibles amortization, merger & integration costs, and other
costs related to facility exits, second quarter 2021 operating
margin was virtually unchanged as well at 8.4% versus 8.5% in the
same period last year
- Second quarter 2021 diluted
earnings per share were $0.58 versus $0.55 in the same period last
year, with the comparable increase driven by a combination of
factors, including contribution from TMC/TPH acquisition, lower
effective tax rate and a lower share count, some of which was
mitigated by a negative swing in other expenses arising from an
increase in losses at XSell Technologies, Inc., which is
accelerating its growth investments in its business, coupled with a
decrease in mark-to-market adjustment of stock‐based deferred
compensation programs funded through Rabbi Trust investments
- On a non-GAAP basis, second quarter
2021 diluted earnings per share were $0.73 versus $0.71 on a
comparable basis (see Exhibit 6 for reconciliation), with the
increase due largely to aforementioned factors
- Consolidated capacity utilization
rate remained unchanged on a comparable basis at 73% in the second
quarter of 2021. Including permanent home agents in the comparable
utilization calculation, however, the capacity utilization would
have increased further comparably
Americas Region
Revenues from the Company’s Americas region,
including operations in North America and offshore (Latin America,
South Asia and the Asia Pacific region), increased 5.1% to $356.4
million, or 79.4% of total revenues, for the second quarter of 2021
compared to $339.3 million, or 81.4% of total revenues, in the same
prior year period. On an organic constant currency basis (a
non-GAAP measure, see Exhibit 11 for reconciliation), the Americas
revenues decreased 1.4% comparably, driven by reductions in
transportation & leisure (demand spike same quarter last year
related to travel cancellations) and financial services (Paycheck
Protection Program implementation boosts demand in the second
quarter of last year) verticals due to COVID-19 coupled with a
decline in the communications vertical.
The Americas income from operations for the
second quarter of 2021 increased 16.8% to $47.3 million, with an
operating margin of 13.3% versus 11.9% in the comparable quarter
last year. On a non-GAAP basis, the Americas operating margin was
13.5% versus 14.0% in the comparable quarter last year, with the
decrease due largely to client ramp costs (see Exhibit 7 for
reconciliation).
EMEA Region
Revenues from the Company’s Europe, Middle East
and Africa (EMEA) region increased 19.2% to $92.5 million,
representing 20.6% of total revenues, for the second quarter of
2021, compared to $77.6 million, or 18.6% of total revenues, in the
same prior year period. On a constant currency basis (a non-GAAP
measure, see Exhibit 11 for reconciliation), EMEA revenues
increased 7.8% on a comparable basis driven primarily by growth in
the financial services, transportation & leisure,
communications, healthcare and other verticals, more than
offsetting a reduction in demand from the technology vertical.
The EMEA region’s income from operations for the
second quarter of 2021 increased 12.6% to $4.6 million, with an
operating margin of 5.0% versus 5.3% in the comparable quarter last
year. On a non-GAAP basis, the operating margin remained virtually
unchanged at 6.7% versus 6.6% in the year-ago period (see Exhibit 7
for reconciliation).
Other
Other loss from operations, which includes
primarily corporate as well as some other costs, increased to $22.1
million, or 4.9% of revenues in the second quarter of 2021,
compared to $17.3 million, or 4.2% of revenues in the prior year
period. Of the $4.8 million comparable increase, approximately $4.0
million was due to deal and integration costs mostly related to the
announced Sitel Group-SYKES transaction with the remainder driven
by higher accrual for long-term performance-based compensation due
to sustained and healthy operating results. On a non-GAAP basis
(see Exhibit 7 for reconciliation), other loss from operations
decreased to 3.7% of revenues from 4.1% in the year-ago period
driven mostly by expense true-ups related to commercial insurance
and lower marketing activities related to Covid-19.
Other Income (Expense) and
Taxes
Total other income (expense), net for the second
quarter of 2021 was $(0.2) million compared to $1.4 million for the
same period in the prior year. The negative swing in total other
income (expense) was driven largely by a combination of increased
losses at XSell Technologies, Inc., which is accounted for under
the equity method, and a comparable reduction in mark-to-market
adjustment of stock‐based deferred compensation programs funded
through Rabbi Trust investments.
The Company recorded an effective tax rate of
21.5% in the second quarter of 2021 versus 22.3% in the same period
last year and below the estimated 23% provided in the Company’s May
2021 business outlook. The rate differential in both instances is
mainly driven by a discrete benefit relating to changes in the
Company’s valuation allowances, which was partially offset by the
UK tax rate change in the current period.
On a non-GAAP basis, the second quarter 2021
effective tax rate was 21.9% compared to 22.8% in the same period
last year and below the estimated 23% provided in the Company’s May
2021 business outlook (see Exhibit 10 for reconciliation), with the
rate differential due largely to aforementioned factors.
Liquidity and Capital
Resources
The Company’s balance sheet at June 30, 2021,
remained strong with cash and cash equivalents of $103.2 million,
of which approximately 84.8%, or $87.5 million, was held in
international operations and the majority of which will not be
subject to additional taxes if repatriated to the United States. At
June 30, 2021, the Company had $23.0 million in borrowings
outstanding, down from $63.0 million at the end of 2020, under its
$500.0 million credit agreement.
Conference Call
In light of the pending acquisition by Sitel
Group®, the Company does not plan to host an earnings conference
call nor provide forward-looking guidance. This press release is
also posted on the SYKES website at
https://investor.sykes.com/company/investors/investor-news/2021/default.aspx.
Non-GAAP Financial Measures
Non-GAAP indicators of performance are not
measures of financial performance under U.S. Generally Accepted
Accounting Principles (“GAAP”) and should not be considered a
substitute for measures determined in accordance with GAAP. The
Company, however, uses non-GAAP measures as a way to assist readers
in further understanding the Company’s results. The Company
believes these non-GAAP financial measures are important indicators
of performance as they are intrinsic to how management evaluates
and rewards performance from its underlying operations. Constant
currency organic revenue growth, which is a non-GAAP measure, for
instance, facilitates comparability between time periods as this
presentation allows the Company to isolate the effect of
acquisition-related revenues and exchange rate differences by
assuming a constant exchange rate between periods for translation.
Similarly, amortization of intangible assets and depreciation of
the step up in value of purchased tangible assets are excluded for
purposes of calculating the non-GAAP financial measures – including
but not limited to non-GAAP operating margins, non-GAAP tax rate,
non-GAAP net income, non-GAAP net income per diluted share and
non-GAAP income from operations – because the Company does not
acquire businesses on a predictable cycle and the exclusion
facilitates a more meaningful evaluation of current operating
performance and comparison to operating performance in other
periods as well as performance relative to its peers who are not
acquisitive or as acquisitive. The Company also excludes the impact
or any corresponding reversals of material restructurings approved
by the appropriate level of management, gain or loss on sale of
facilities, release of cumulative translation adjustment (CTA),
lease obligations and facility exit costs, severance and related
costs, non-cash impairment charges, merger and integration costs
associated with an acquisition and accretion of interest on
contingent consideration of an acquisition from non-GAAP Income
(loss) from operations and non-GAAP net income because the amounts
are not reflective of ongoing operating results and do not
contribute to a meaningful evaluation of current operating
performance or comparison to operating performance in other
periods. Refer to the exhibits in the release for detailed
reconciliations.
About Sykes Enterprises,
Incorporated
Sykes Enterprises, Incorporated and consolidated
subsidiaries (“SYKES” or the “Company”) is a leading full lifecycle
provider of global customer experience management services,
multichannel demand generation and digital transformation. SYKES
provides differentiated full lifecycle customer experience
management solutions and services primarily to Global 2000
companies and their end customers principally in the financial
services, technology, communications, transportation & leisure
and healthcare industries. The Company’s differentiated full
lifecycle services platform effectively engages customers at every
touchpoint within the customer journey, including digital media and
acquisition, sales expertise, customer service, technical support
and retention, many of which can be optimized through a suite of
digital transformation capabilities under its SYKES Digital
Services (“SDS”) group, which spans robotic process automation
(“RPA”), self-service, insight analytics and digital learning. In
addition to digital transformation, SYKES also provides artificial
intelligence (“AI”) solutions that can be embedded and leveraged
across its lifecycle offerings. The Company serves its clients
through two geographic operating regions: the Americas (United
States, Canada, Latin America, Australia and the Asia Pacific Rim)
and EMEA (Europe, the Middle East and Africa). The Company’s
Americas and EMEA regions primarily provide customer experience
management solutions and services with an emphasis on inbound
multichannel demand generation, customer service and technical
support to its clients’ customers. These services are delivered
through multiple communication channels including phone, e-mail,
social media, text messaging, chat and digital self-service. The
Company also provides various enterprise support services in the
United States that include services for its clients’ internal
support operations, from technical staffing services to outsourced
corporate help desk services. In Europe, the Company also provide
fulfillment services, which include order processing, payment
processing, inventory control, product delivery and product returns
handling. Additionally, through the Company’s acquisition of RPA
provider Symphony Ventures Ltd (“Symphony”) coupled with its
investment in AI through XSell Technologies, Inc. (“XSell”), the
Company also provides a suite of digital transformation
capabilities that optimizes its differentiated full lifecycle
management services platform. The Company’s complete service
offering helps its clients acquire, retain and increase the
lifetime value of their customer relationships. The Company has
developed an extensive global reach with customer experience
management centers across six continents, including North America,
South America, Europe, Asia, Australia and Africa. The Company
delivers cost-effective solutions that generate demand, enhance the
customer service experience, promote stronger brand loyalty, and
bring about high levels of performance and profitability. For
additional information please visit www.sykes.com.
Forward-Looking Statements
This press release may contain “forward-looking
statements,” including SYKES’ estimates of its future business
outlook, prospects or financial results. Statements regarding
SYKES’ objectives, expectations, intentions, beliefs or strategies,
or statements containing words such as “believe,” “estimate,”
“project,” “expect,” “intend,” “may,” “anticipate,” “plans,”
“seeks,” “implies,” or similar expressions are intended to identify
such forward-looking statements. It is important to note that
SYKES’ actual results could differ materially from those in such
forward-looking statements, and undue reliance should not be placed
on such statements. Statements about the effects of the COVID-19
pandemic on our business, operations, financial performance and
prospects may constitute forward-looking statements and are subject
to the risk that the actual impacts may differ, possibly
materially, from what is reflected in those forward-looking
statements due to factors and future developments that are
uncertain, unpredictable and in many cases beyond our control,
including the scope and duration of the pandemic, actions taken by
governmental authorities in response to the pandemic, and the
direct and indirect impact of the pandemic on our clients, third
parties and us. Among the important factors that could cause such
actual results to differ materially are (i) the impact of economic
recessions in the U.S. and other parts of the world, (ii)
fluctuations in global business conditions and the global economy,
(iii) SYKES’ ability of maintaining margins, (iv) SYKES’ ability to
continue the growth of its support service revenues through
additional technical and customer experience management centers,
(v) currency fluctuations, (vi) the timing of significant orders
for SYKES’ products and services, (vii) loss or addition of
significant clients, (viii) the early termination of contracts by
clients, (ix) SYKES’ ability to recognize deferred revenue through
delivery of products or satisfactory performance of services, (x)
construction delays of new or expansion of existing customer
experience management centers, (xi) difficulties or delays in
implementing SYKES’ bundled service offerings, (xii) failure to
achieve sales, marketing and other objectives, (xiii) variations in
the terms and the elements of services offered under SYKES’
standardized contract including those for future bundled service
offerings, (xiv) changes in applicable accounting principles or
interpretations of such principles, (xv) delays in SYKES’ ability
to develop new products and services and market acceptance of new
products and services, (xvi) rapid technological change, (xvii)
political and country-specific risks inherent in conducting
business abroad, (xviii) SYKES’ ability to attract and retain key
management personnel, (xix) SYKES’ ability to further penetrate
into vertically integrated markets, (xx) SYKES’ ability to expand
its global presence through strategic alliances and selective
acquisitions, (xxi) SYKES’ ability to continue to establish a
competitive advantage through sophisticated technological
capabilities, (xxii) the ultimate outcome of any lawsuits or
penalties (regulatory or otherwise), (xxiii) SYKES’ dependence on
trends toward outsourcing, (xxiv) risk of interruption of technical
and customer experience management center operations due to such
factors as fire, earthquakes, inclement weather and other
disasters, power failures, telecommunications failures,
unauthorized intrusions, computer viruses and other emergencies,
(xxv) the existence of substantial competition, (xxvi) the ability
to obtain and maintain grants and other incentives, including tax
holidays or otherwise, (xxvii) risks related to the integration of
the businesses of SYKES, including the Qelp, Clearlink, WhistleOut,
Symphony and Taylor Media Corp. (the owner of The Penny Hoarder)
acquisitions and the impairment of any related goodwill, (xxviii)
the ability to execute on initiatives to address inefficiencies
around recruitment and retention in the U.S. and rationalize
underutilized capacity methodically, (xxix) the occurrence of any
event, change or other circumstance that could give rise to the
termination of the Merger Agreement and (xxx) other risk factors
listed from time to time in SYKES’ registration statements and
reports as filed with the Securities and Exchange Commission. All
forward-looking statements included in this press release are made
as of the date hereof, and SYKES undertakes no obligation to update
any such forward-looking statements, whether as a result of new
information, future events, or otherwise.
For additional information
contact:Subhaash KumarSykes Enterprises, Incorporated(813)
233-7143
Sykes Enterprises,
IncorporatedConsolidated Statements of
Operations(in thousands, except per share
data)(Unaudited)Exhibit
1
|
Three Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
Revenues |
$ |
448,885 |
|
|
$ |
416,833 |
|
Direct salaries and related
costs |
|
(292,086 |
) |
|
|
(268,433 |
) |
General and
administrative |
|
(110,924 |
) |
|
|
(102,664 |
) |
Depreciation, net |
|
(12,809 |
) |
|
|
(12,630 |
) |
Amortization of
intangibles |
|
(2,959 |
) |
|
|
(4,093 |
) |
Impairment of long-lived
assets |
|
(386 |
) |
|
|
(1,800 |
) |
Income from operations |
|
29,721 |
|
|
|
27,213 |
|
Total other income (expense),
net |
|
(187 |
) |
|
|
1,402 |
|
Income before income
taxes |
|
29,534 |
|
|
|
28,615 |
|
Income taxes |
|
(6,354 |
) |
|
|
(6,385 |
) |
Net income |
$ |
23,180 |
|
|
$ |
22,230 |
|
|
|
|
|
|
|
|
|
Net income per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.58 |
|
|
$ |
0.55 |
|
Diluted |
$ |
0.58 |
|
|
$ |
0.55 |
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
39,779 |
|
|
|
40,318 |
|
Diluted |
|
39,942 |
|
|
|
40,380 |
|
Sykes Enterprises,
IncorporatedConsolidated Statements of
Operations(in thousands, except per share
data)(Unaudited)Exhibit
2
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
Revenues |
$ |
906,771 |
|
|
$ |
827,999 |
|
Direct salaries and related
costs |
|
(591,563 |
) |
|
|
(535,378 |
) |
General and
administrative |
|
(220,551 |
) |
|
|
(205,911 |
) |
Depreciation, net |
|
(25,924 |
) |
|
|
(25,091 |
) |
Amortization of
intangibles |
|
(5,946 |
) |
|
|
(8,212 |
) |
Impairment of long-lived
assets |
|
(1,536 |
) |
|
|
(1,800 |
) |
Income from operations |
|
61,251 |
|
|
|
51,607 |
|
Total other income (expense),
net |
|
(834 |
) |
|
|
(3,848 |
) |
Income before income
taxes |
|
60,417 |
|
|
|
47,759 |
|
Income taxes |
|
(12,259 |
) |
|
|
(11,611 |
) |
Net income |
$ |
48,158 |
|
|
$ |
36,148 |
|
|
|
|
|
|
|
|
|
Net income per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
1.21 |
|
|
$ |
0.89 |
|
Diluted |
$ |
1.21 |
|
|
$ |
0.88 |
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
39,711 |
|
|
|
40,726 |
|
Diluted |
|
39,951 |
|
|
|
40,857 |
|
Sykes Enterprises,
IncorporatedSegment Results(in
thousands)(Unaudited)Exhibit
3
|
Three Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
Revenues: |
|
|
|
|
|
|
|
Americas |
$ |
356,427 |
|
|
$ |
339,272 |
|
EMEA |
|
92,455 |
|
|
|
77,561 |
|
Other |
|
3 |
|
|
|
— |
|
Total |
$ |
448,885 |
|
|
$ |
416,833 |
|
|
|
|
|
|
|
|
|
Operating Income
(Loss): |
|
|
|
|
|
|
|
Americas |
$ |
47,275 |
|
|
$ |
40,479 |
|
EMEA |
|
4,593 |
|
|
|
4,078 |
|
Other |
|
(22,147 |
) |
|
|
(17,344 |
) |
Income from operations |
|
29,721 |
|
|
|
27,213 |
|
|
|
|
|
|
|
|
|
Total other income (expense),
net |
|
(187 |
) |
|
|
1,402 |
|
Income taxes |
|
(6,354 |
) |
|
|
(6,385 |
) |
Net income |
$ |
23,180 |
|
|
$ |
22,230 |
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
Revenues: |
|
|
|
|
|
|
|
Americas |
$ |
720,146 |
|
|
$ |
672,198 |
|
EMEA |
|
186,622 |
|
|
|
155,794 |
|
Other |
|
3 |
|
|
|
7 |
|
Total |
$ |
906,771 |
|
|
$ |
827,999 |
|
|
|
|
|
|
|
|
|
Operating Income
(Loss): |
|
|
|
|
|
|
|
Americas |
$ |
92,147 |
|
|
$ |
76,258 |
|
EMEA |
|
11,261 |
|
|
|
7,258 |
|
Other |
|
(42,157 |
) |
|
|
(31,909 |
) |
Income from operations |
|
61,251 |
|
|
|
51,607 |
|
|
|
|
|
|
|
|
|
Total other income (expense),
net |
|
(834 |
) |
|
|
(3,848 |
) |
Income taxes |
|
(12,259 |
) |
|
|
(11,611 |
) |
Net income |
$ |
48,158 |
|
|
$ |
36,148 |
|
Sykes Enterprises,
IncorporatedConsolidated Balance Sheets and
Supplementary Data(in thousands, except seat
data)(Unaudited)Exhibit
4
|
June 30, 2021 |
|
|
December 31, 2020 |
|
Assets: |
|
|
|
|
|
|
|
Current assets |
$ |
566,806 |
|
|
$ |
559,889 |
|
Property and equipment,
net |
|
116,797 |
|
|
|
121,084 |
|
Operating lease right-of-use
assets |
|
132,032 |
|
|
|
158,866 |
|
Goodwill & intangibles,
net |
|
527,560 |
|
|
|
533,384 |
|
Other noncurrent assets |
|
63,249 |
|
|
|
62,582 |
|
Total assets |
$ |
1,406,444 |
|
|
$ |
1,435,805 |
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity: |
|
|
|
|
|
|
|
Current liabilities |
$ |
279,824 |
|
|
$ |
295,506 |
|
Noncurrent liabilities |
|
181,977 |
|
|
|
246,645 |
|
Shareholders' equity |
|
944,643 |
|
|
|
893,654 |
|
Total liabilities and shareholders' equity |
$ |
1,406,444 |
|
|
$ |
1,435,805 |
|
|
Geographic Mix(% of Total
Revenues) |
|
|
Q2 2021 |
|
|
Q2 2020 |
|
Americas (1) |
|
79 |
% |
|
|
81 |
% |
Europe, Middle East &
Africa (EMEA) |
|
21 |
% |
|
|
19 |
% |
Other |
|
0 |
% |
|
|
0 |
% |
Total |
|
100 |
% |
|
|
100 |
% |
(1) Includes
the United States, Canada, Latin America, South Asia and the Asia
Pacific Rim (APAC) Region. Latin America, South Asia and APAC are
included in the Americas due to the nature of the business and
client profile, which is primarily made up of U.S.-based
clients.
|
Vertical Industry Mix(% of Total
Revenues) |
|
|
Q2 2021 |
|
|
Q2 2020 |
|
Financial Services |
|
34 |
% |
|
|
33 |
% |
Technology |
|
22 |
% |
|
|
22 |
% |
Communications |
|
17 |
% |
|
|
21 |
% |
Transportation &
Leisure |
|
6 |
% |
|
|
8 |
% |
Healthcare |
|
7 |
% |
|
|
5 |
% |
Other |
|
14 |
% |
|
|
11 |
% |
Total |
|
100 |
% |
|
|
100 |
% |
|
Seat Capacity |
|
|
Q2 2021 |
|
|
Q2 2020 |
|
Americas |
|
37,100 |
|
|
|
40,400 |
|
EMEA |
|
7,500 |
|
|
|
8,200 |
|
Total |
|
44,600 |
|
|
|
48,600 |
|
|
Capacity Utilization |
|
|
Q2 2021 |
|
|
Q2 2020 |
|
Americas |
|
73 |
% |
|
|
73 |
% |
EMEA |
|
72 |
% |
|
|
69 |
% |
Total |
|
73 |
% |
|
|
73 |
% |
Sykes Enterprises,
IncorporatedCash Flow from
Operations(in
thousands)(Unaudited)Exhibit
5
|
Three Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
Cash Flow From Operating Activities: |
|
|
|
|
|
|
|
Net income |
$ |
23,180 |
|
|
$ |
22,230 |
|
Depreciation |
|
12,821 |
|
|
|
12,687 |
|
Amortization of
intangibles |
|
2,959 |
|
|
|
4,093 |
|
Amortization of deferred
grants |
|
(240 |
) |
|
|
(85 |
) |
Impairment losses |
|
386 |
|
|
|
1,800 |
|
Changes in assets and
liabilities and other |
|
(13,445 |
) |
|
|
17,368 |
|
Net cash provided by operating
activities |
$ |
25,661 |
|
|
$ |
58,093 |
|
|
|
|
|
|
|
|
|
Capital expenditures |
$ |
9,727 |
|
|
$ |
11,062 |
|
Cash paid during period for
interest |
$ |
260 |
|
|
$ |
442 |
|
Cash paid during period for
income taxes |
$ |
12,374 |
|
|
$ |
5,148 |
|
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
Cash Flow From Operating Activities: |
|
|
|
|
|
|
|
Net income |
$ |
48,158 |
|
|
$ |
36,148 |
|
Depreciation |
|
25,948 |
|
|
|
25,206 |
|
Amortization of
intangibles |
|
5,946 |
|
|
|
8,212 |
|
Amortization of deferred
grants |
|
(480 |
) |
|
|
(170 |
) |
Impairment losses |
|
1,536 |
|
|
|
1,800 |
|
Changes in assets and
liabilities and other |
|
(15,208 |
) |
|
|
15,446 |
|
Net cash provided by operating
activities |
$ |
65,900 |
|
|
$ |
86,642 |
|
|
|
|
|
|
|
|
|
Capital expenditures |
$ |
19,103 |
|
|
$ |
22,880 |
|
Cash paid during period for
interest |
$ |
584 |
|
|
$ |
1,009 |
|
Cash paid during period for
income taxes |
$ |
17,457 |
|
|
$ |
8,947 |
|
Sykes Enterprises,
IncorporatedReconciliation of Non-GAAP Financial
Information(in thousands, except per share
data)(Unaudited)Exhibit
6
|
Three Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
GAAP income from
operations |
$ |
29,721 |
|
|
$ |
27,213 |
|
Adjustments: |
|
|
|
|
|
|
|
Long-lived asset impairment |
|
386 |
|
|
|
1,800 |
|
Acquisition-related depreciation and amortization of property and
equipment and purchased intangibles |
|
3,386 |
|
|
|
4,489 |
|
Merger & integration costs |
|
3,952 |
|
|
|
1,685 |
|
Mark-to-market adjustment of stock-based compensation programs
funded through Rabbi Trust Investments included in "General and
administrative" costs |
|
1,123 |
|
|
|
— |
|
Other (1) |
|
(744 |
) |
|
|
430 |
|
Non-GAAP income from
operations |
$ |
37,824 |
|
|
$ |
35,617 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
GAAP net income |
$ |
23,180 |
|
|
$ |
22,230 |
|
Adjustments: |
|
|
|
|
|
|
|
Long-lived asset impairment |
|
386 |
|
|
|
1,800 |
|
Acquisition-related depreciation and amortization of property and
equipment and purchased intangibles |
|
3,386 |
|
|
|
4,489 |
|
Merger & integration costs |
|
3,952 |
|
|
|
1,685 |
|
Mark-to-market adjustment of stock-based compensation programs
funded through Rabbi Trust Investments included in "General and
administrative" costs |
|
1,123 |
|
|
|
— |
|
Mark-to-market adjustment of Rabbi Trust Investments included in
"Total other income (expense), net" |
|
(1,123 |
) |
|
|
— |
|
(Earnings) losses from equity method investee |
|
858 |
|
|
|
— |
|
Other (1) |
|
(744 |
) |
|
|
430 |
|
Tax effect of the adjustments |
|
(1,837 |
) |
|
|
(2,051 |
) |
Non-GAAP net income |
$ |
29,181 |
|
|
$ |
28,583 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
GAAP net income (loss), per
diluted share |
$ |
0.58 |
|
|
$ |
0.55 |
|
Adjustments: |
|
|
|
|
|
|
|
Long-lived asset impairment |
|
0.01 |
|
|
|
0.04 |
|
Acquisition-related depreciation and amortization of property and
equipment and purchased intangibles |
|
0.09 |
|
|
|
0.11 |
|
Merger & integration costs |
|
0.10 |
|
|
|
0.04 |
|
Mark-to-market adjustment of stock-based compensation programs
funded through Rabbi Trust Investments included in "General and
administrative" costs |
|
0.03 |
|
|
|
— |
|
Mark-to-market adjustment of Rabbi Trust Investments included in
"Total other income (expense), net" |
|
(0.03 |
) |
|
|
— |
|
(Earnings) losses from equity method investee |
|
0.02 |
|
|
|
— |
|
Other (1) |
|
(0.02 |
) |
|
|
0.02 |
|
Tax effect of the adjustments |
|
(0.05 |
) |
|
|
(0.05 |
) |
Non-GAAP net income, per
diluted share |
$ |
0.73 |
|
|
$ |
0.71 |
|
(1) Long-lived
asset impairment costs of $1.8 million have been reclassified from
"Other" to "Long-lived asset impairment" for the three months ended
June 30, 2020.
Sykes Enterprises,
IncorporatedReconciliation of Non-GAAP Financial
Information by Segment(in
thousands)(Unaudited)Exhibit
7
|
Americas |
|
|
EMEA |
|
|
Other (1) |
|
|
Three Months Ended June 30, |
|
|
Three Months Ended June 30, |
|
|
Three Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
GAAP income (loss) from
operations |
$ |
47,275 |
|
|
$ |
40,479 |
|
|
$ |
4,593 |
|
|
$ |
4,078 |
|
|
$ |
(22,147 |
) |
|
$ |
(17,344 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-lived asset impairment |
|
386 |
|
|
|
1,800 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Acquisition-related depreciation and amortization of property and
equipment and purchased intangibles |
|
2,217 |
|
|
|
3,435 |
|
|
|
1,169 |
|
|
|
1,054 |
|
|
|
— |
|
|
|
— |
|
Merger & integration costs |
|
— |
|
|
|
1,459 |
|
|
|
— |
|
|
|
— |
|
|
|
3,952 |
|
|
|
226 |
|
Mark-to-market adjustment of stock- based compensation programs
funded through Rabbi Trust Investments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,123 |
|
|
|
— |
|
Other (2) |
|
(1,603 |
) |
|
|
429 |
|
|
|
405 |
|
|
|
— |
|
|
|
454 |
|
|
|
1 |
|
Non-GAAP income (loss) from
operations |
$ |
48,275 |
|
|
$ |
47,602 |
|
|
$ |
6,167 |
|
|
$ |
5,132 |
|
|
$ |
(16,618 |
) |
|
$ |
(17,117 |
) |
(1) Other
includes corporate and other
costs. (2) Long-lived
asset impairment costs of $1.8 million have been reclassified from
"Other" to "Long-lived asset impairment" for the three months ended
June 30, 2020.
Sykes Enterprises,
IncorporatedReconciliation of Non-GAAP Financial
Information(in thousands, except per share
data)(Unaudited)Exhibit
8
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
GAAP income from
operations |
$ |
61,251 |
|
|
$ |
51,607 |
|
Adjustments: |
|
|
|
|
|
|
|
Long-lived asset impairment |
|
1,218 |
|
|
|
1,800 |
|
Acquisition-related depreciation and amortization of property and
equipment and purchased intangibles |
|
6,807 |
|
|
|
9,028 |
|
Merger & integration costs |
|
4,268 |
|
|
|
2,464 |
|
Mark-to-market adjustment of stock-based compensation programs
funded through Rabbi Trust Investments included in "General and
administrative" costs |
|
1,647 |
|
|
|
(2 |
) |
Other (1) |
|
(737 |
) |
|
|
485 |
|
Non-GAAP income from
operations |
$ |
74,454 |
|
|
$ |
65,382 |
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
GAAP net income |
$ |
48,158 |
|
|
$ |
36,148 |
|
Adjustments: |
|
|
|
|
|
|
|
Long-lived asset impairment |
|
1,218 |
|
|
|
1,800 |
|
Acquisition-related depreciation and amortization of property and
equipment and purchased intangibles |
|
6,807 |
|
|
|
9,028 |
|
Merger & integration costs |
|
4,268 |
|
|
|
2,464 |
|
Mark-to-market adjustment of stock-based compensation programs
funded through Rabbi Trust Investments included in "General and
administrative" costs |
|
1,647 |
|
|
|
(2 |
) |
Mark-to-market adjustment of Rabbi Trust Investments included in
"Total other income (expense), net" |
|
(1,648 |
) |
|
|
— |
|
(Earnings) losses from equity method investee |
|
1,533 |
|
|
|
— |
|
Other (1) |
|
(737 |
) |
|
|
485 |
|
Tax effect of the adjustments |
|
(3,050 |
) |
|
|
(3,337 |
) |
Non-GAAP net income |
$ |
58,196 |
|
|
$ |
46,586 |
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
GAAP net income, per diluted
share |
$ |
1.21 |
|
|
$ |
0.88 |
|
Adjustments: |
|
|
|
|
|
|
|
Long-lived asset impairment |
|
0.03 |
|
|
|
0.04 |
|
Acquisition-related depreciation and amortization of property and
equipment and purchased intangibles |
|
0.17 |
|
|
|
0.22 |
|
Merger & integration costs |
|
0.11 |
|
|
|
0.06 |
|
Mark-to-market adjustment of stock-based compensation programs
funded through Rabbi Trust Investments included in "General and
administrative" costs |
|
0.04 |
|
|
|
— |
|
Mark-to-market adjustment of Rabbi Trust Investments included in
"Total other income (expense), net" |
|
(0.04 |
) |
|
|
— |
|
(Earnings) losses from equity method investee |
|
0.04 |
|
|
|
— |
|
Other (1) |
|
(0.02 |
) |
|
|
0.02 |
|
Tax effect of the adjustments |
|
(0.08 |
) |
|
|
(0.08 |
) |
Non-GAAP net income, per
diluted share |
$ |
1.46 |
|
|
$ |
1.14 |
|
(1) Long-lived
asset impairment costs of $1.8 million have been reclassified from
"Other" to "Long-lived asset impairment" for the three months ended
June 30, 2020.
Sykes Enterprises,
IncorporatedReconciliation of Non-GAAP Financial
Information by Segment(in
thousands)(Unaudited)Exhibit
9
|
Americas |
|
|
EMEA |
|
|
Other (1) |
|
|
Six Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
GAAP income (loss) from
operations |
$ |
92,147 |
|
|
$ |
76,258 |
|
|
$ |
11,261 |
|
|
$ |
7,258 |
|
|
$ |
(42,157 |
) |
|
$ |
(31,909 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-lived asset impairment |
|
743 |
|
|
|
1,800 |
|
|
|
475 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Acquisition-related depreciation and amortization of property and
equipment and purchased intangibles |
|
4,480 |
|
|
|
6,894 |
|
|
|
2,327 |
|
|
|
2,134 |
|
|
|
— |
|
|
|
— |
|
Merger & integration costs |
|
— |
|
|
|
2,011 |
|
|
|
— |
|
|
|
— |
|
|
|
4,268 |
|
|
|
453 |
|
Mark-to-market adjustment of stock- based compensation programs
funded through Rabbi Trust Investments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,647 |
|
|
|
(2 |
) |
Other (2) |
|
(1,596 |
) |
|
|
429 |
|
|
|
405 |
|
|
|
— |
|
|
|
454 |
|
|
|
56 |
|
Non-GAAP income (loss) from
operations |
$ |
95,774 |
|
|
$ |
87,392 |
|
|
$ |
14,468 |
|
|
$ |
9,392 |
|
|
$ |
(35,788 |
) |
|
$ |
(31,402 |
) |
(1) Other
includes corporate and other
costs. (2) Long-lived
asset impairment costs of $1.8 million have been reclassified from
"Other" to "Long-lived asset impairment" for the three months ended
June 30, 2020.
Sykes Enterprises,
IncorporatedReconciliation of Non-GAAP Financial
Information(Unaudited)Exhibit
10
|
Three Months Ended June 30, |
|
|
2021 |
|
|
|
2020 |
|
|
GAAP tax rate |
22 |
% |
|
|
22 |
% |
|
Adjustments: |
|
|
|
|
|
|
|
Long-lived asset impairment |
0 |
% |
|
|
0 |
% |
|
Acquisition-related depreciation and amortization of property and
equipment and purchased intangibles |
0 |
% |
|
|
0 |
% |
|
Merger & integration costs |
0 |
% |
|
|
1 |
% |
|
Mark-to-market adjustment of stock-based compensation programs
funded through Rabbi Trust Investments included in "General and
administrative" costs |
0 |
% |
|
|
0 |
% |
|
Mark-to-market adjustment of Rabbi Trust Investments included in
"Total other income (expense), net" |
0 |
% |
|
|
0 |
% |
|
(Earnings) losses from equity method investee |
0 |
% |
|
|
0 |
% |
|
Other |
0 |
% |
|
|
0 |
% |
|
Non-GAAP tax rate |
22 |
% |
|
|
23 |
% |
|
|
|
|
|
|
|
|
|
Sykes Enterprises,
IncorporatedReconciliation of Non-GAAP Financial
Information by
Segment(Unaudited)Exhibit
11
|
Three Months EndedJune 30, 2021 vs. June
30, 2020 (2) |
|
|
Americas |
|
|
EMEA |
|
|
Other (3) |
|
|
Consolidated |
|
GAAP revenue growth |
|
5.1 |
% |
|
|
19.2 |
% |
|
|
100.0 |
% |
|
|
7.7 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition |
|
-4.8 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
-3.9 |
% |
Foreign currency impact (1) |
|
-1.7 |
% |
|
|
-11.4 |
% |
|
|
0.0 |
% |
|
|
-3.5 |
% |
Non-GAAP constant currency
organic revenue growth |
|
-1.4 |
% |
|
|
7.8 |
% |
|
|
100.0 |
% |
|
|
0.3 |
% |
(1) Foreign
exchange fluctuations are calculated on a constant currency basis
by translating the current period reported amounts using the prior
period foreign exchange rate for each underlying
currency. (2) Represents
the period-over-period growth
rate. (3) Other
includes corporate and other costs.
Sykes Enterprises (NASDAQ:SYKE)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Sykes Enterprises (NASDAQ:SYKE)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024