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Sykes Enterprises, Incorporated Reports Third-Quarter 2012 Financial Results



Sykes Enterprises, Incorporated Reports Third-Quarter 2012 Financial Results

           -- Third quarter revenues exceed business outlook range

      -- EMEA's capacity rationalization yields solid operating margins

                  -- Raising full-year 2012 business outlook

TAMPA, Fla., Nov. 5, 2012 (GLOBE NEWSWIRE) -- Sykes Enterprises, Incorporated
("SYKES" or the "Company") (Nasdaq:SYKE), a global leader in providing
outsourced customer contact management solutions and services in the business
process outsourcing (BPO) arena, announced today its financial results for the
third quarter ended September 30, 2012.
                                               

Third Quarter 2012 Financial Highlights

  * Third quarter 2012 revenues from continuing operations of $280.5 million
    decreased $12.8 million, or 4.4%, from $293.3 million in the comparable
    quarter last year; third quarter 2012 revenues included $10.1 million in
    revenue contribution from the Alpine Access acquisition, which closed
    August 20, 2012; excluding the revenue contribution from Alpine Access and
    on a constant currency basis, third quarter 2012 comparable revenues
    decreased 6.2% as better-than-expected demand from certain clients within
    the communications and financial services verticals was more than offset
    by end-of-life client programs and the effect of strategic actions (the
    previously announced exit from Ireland and South Africa and capacity
    rationalization in Amsterdam, as well as capacity rationalization related
    to the integration of the ICT acquisition), revenues from both of which
    were included in the year-ago quarter
  * Third quarter 2012 operating margin from continuing operations on a GAAP
    basis was 3.1% versus 7.5% in the comparable quarter last year; on a
    non-GAAP basis (see section titled "Non-GAAP Financial Measures" for an
    explanation and see Exhibit 6 for reconciliation), third quarter 2012
    operating margin was 6.0% versus 8.4% in the same period last year, with
    the decrease due largely to previously discussed end-of-life client
    programs, coupled with unfavorable foreign exchange impact in the current
    quarter; the year-ago quarter included benefits from an insurance claim
    settlement related to Typhoon Ondoy in the Philippines and a business tax
    refund in China (with a combined contribution of 0.3% to operating
    margins)
  * Third quarter 2012 diluted earnings per share from continuing operations
    on a GAAP basis were $0.19 versus $0.42 in the comparable quarter last
    year, with the reduction due largely to a combination of end-of-life
    client programs and transaction costs related to the Alpine Access
    acquisition, which more than offset the impact of a lower tax rate
  * On a non-GAAP basis, third quarter 2012 diluted earnings per share from
    continuing operations were $0.31 versus $0.46 in the same period last year
    (see Exhibit 6 for reconciliation), with the decrease driven principally
    by the impact of end-of-life client programs
  * Consolidated seat capacity decreased to 40,200 seats in third quarter 2012
    from 41,800 seats in the comparable period last year; consolidated
    capacity utilization rates increased to 73% in third quarter 2012 from 72%
    in the comparable period last year due to capacity rationalization

Americas Region

Revenues from continuing operations from the Company's Americas region,
including operations in North America and offshore (Latin America, South Asia
and the Asia Pacific region), decreased 1.6% to $237.5 million, or 84.7% of
total revenues, for the third quarter of 2012 compared to $241.5 million, or
82.3% of total revenues, in the prior year's third quarter. The Alpine Access
acquisition contributed $10.1 million of revenue to the Americas region in the
third quarter of 2012. Excluding the revenue contribution from Alpine Access
and on a constant currency basis, the 5.5% comparable decline in Americas'
revenues from continuing operations was largely a result of previously
discussed end-of-life client programs and lower demand from existing clients
due to economic uncertainty, which more than offset the increase in demand
from the financial services vertical and the communications vertical, which
was partly driven by the launch of Apple's iPhone 5.

During the quarter, revenues from continuing operations generated from
services provided offshore decreased to 47% from 49% in the same period last
year due largely to a decline in offshore revenues driven by end-of-life
client programs, revenues from which were included in the year-ago quarter.

Sequentially, revenues from continuing operations generated from the Americas
region increased 7.4% to $237.5 million in the third quarter of 2012 compared
to $221.2 million, or 83.5% of total revenues, in the second quarter of 2012.
The Alpine Access acquisition contributed $10.1 million of revenue to the
Americas region in the third quarter of 2012. Excluding the revenue
contribution from Alpine Access and on a constant currency basis, the 1.7%
increase in Americas' revenues from continuing operations was largely a result
of demand from the financial services vertical and the communications
vertical, which was partly driven by the launch of Apple's iPhone 5, coupled
with a seasonally stronger third quarter driven by the back-to-school business
activity.

The Americas income from continuing operations for the third quarter of 2012
decreased 30.0% to $21.7 million, with an operating margin of 9.1% versus
12.8% in the comparable quarter last year. On a non-GAAP basis (see Exhibit 7
for reconciliation), the Americas operating margin from continuing operations
was 11.0% versus 13.9% in the comparable quarter last year, with the decrease
due largely to previously discussed end-of-life client programs, coupled with
the unfavorable foreign exchange impact in the current quarter. The year-ago
quarter reflects the proceeds from an insurance claim settlement related to
Typhoon Ondoy in the Philippines and a business tax refund in China, which
contributed 0.4% to Americas operating margin in the year-ago quarter.

Sequentially, the Americas income from continuing operations for the third
quarter of 2012 increased 4.2% to $21.7 million, with an operating margin of
9.1% versus 9.4% in the second quarter of 2012. On a non-GAAP basis (see
Exhibit 7 for reconciliation), the Americas operating margin from continuing
operations was essentially unchanged at 11.0%, which reflects the current
quarter step-up in investment in facility upgrades and transfers.

EMEA Region

Revenues from continuing operations from the Company's Europe, Middle East and
Africa (EMEA) region decreased 17.1% to $43.0 million, representing 15.3% of
total revenues for the third quarter of 2012, compared to $51.8 million, or
17.7% of total revenues, in the prior year's third quarter (EMEA's revenues
were down 9.2% on a constant currency basis). The constant currency decrease
in EMEA revenues from continuing operations was largely a result of previously
discussed end-of-life client programs and the effect of strategic actions (the
Company's planned exit from Ireland, South Africa and capacity rationalization
in Amsterdam).

Sequentially, revenues from continuing operations from the Company's EMEA
region decreased 1.4% to $43.0 million for the third quarter of 2012 compared
to $43.6 million, or 16.5% of SYKES' total revenues in the second quarter of
2012 quarter (EMEA's revenues were down 0.3% on a constant currency basis
sequentially). The constant currency decrease in EMEA revenues from continuing
operations was largely a result of reduction in demand.

The EMEA region's income from continuing operations for the third quarter of
2012 was $2.4 million, or 5.5% of EMEA revenues, versus operating income of
$1.9 million, or 3.7% of revenues, in the comparable quarter last year. On a
non-GAAP basis (see Exhibit 7 for reconciliation), the operating margin from
continuing operations was 5.7% versus 3.7% in the same period last year. The
improvement was due largely to the conclusion of the previously discussed
strategic actions more than offsetting the unfavorable foreign exchange
impact.

Sequentially, the EMEA region's income from continuing operations for the
third quarter of 2012 was $2.4 million, or 5.5% of revenues versus an
operating loss of $0.9 million, or a negative 2.0% of revenues, in the second
quarter of 2012. On a non-GAAP basis (see Exhibit 7 for reconciliation), the
EMEA operating margin from continuing operations was 5.7% versus a negative
1.9% in the second quarter of 2012, with the improvement due to the previously
discussed strategic actions and more work days relative to the second quarter.

Corporate G&A Expenses

Corporate costs increased to $15.3 million, or 5.5% of revenues, in the third
quarter of 2012, compared to $10.8 million, or 3.7% of revenues, in the
comparable quarter last year, with the increase driven principally by
transaction costs related to the Alpine Access acquisition. On a non-GAAP
basis (see Exhibit 7 for reconciliation), corporate costs increased to $11.9
million, or 4.2% of revenues, from $10.8 million, or 3.7% of revenues, in the
comparable period last year driven principally by performance-related variable
incentive compensation.

Sequentially, corporate costs increased to $15.3 million, or 5.5% of revenues,
in the third quarter of 2012, from $11.2 million, or 4.2% of revenues, in the
second quarter of 2012, due to the above-mentioned factor. On a non-GAAP basis
(see Exhibit 7 for reconciliation), corporate costs increased to $11.9 million
from $11.2 million in the second quarter, but remained unchanged at 4.2% of
revenues.

Interest & Other Expense and Taxes

Interest and other expense for the third quarter of 2012 was $0.8 million
versus $0.2 million in the comparable quarter last year, with the increase in
interest and other expense primarily attributable to adverse movements in
foreign exchange rates.

The Company had a 3.9% tax benefit from continuing operations for the third
quarter of 2012 versus a 13.6% tax rate in the same period last year and below
the estimated 25% provided in the Company's August 2012 business outlook. The
tax benefit versus the year-ago period's tax rate and relative to the August
2012 business outlook tax rate was driven principally by transaction costs
related to the Alpine Access acquisition, which lowered pre-tax income in a
higher tax-rate jurisdiction.

On a non-GAAP basis, the third quarter 2012 effective tax rate from continuing
operations was 14.6% compared to 15.7% in the same period last year and below
the estimated 26% provided in the Company's August 2012 business outlook. The
decrease versus the year-ago period and relative to the August 2012 business
outlook was due mainly to a shift in the geographic mix of earnings to lower
tax rate jurisdictions.

Liquidity and Capital Resources

The Company's balance sheet at September 30, 2012 remained strong with cash
and cash equivalents of $176.6 million.  Approximately 96%, or $169.5 million,
was held in international operations and may be subject to additional taxes if
repatriated to the United States, including withholding tax applied by the
country of origin and U.S. taxes on the dividend income. The final purchase
price paid for Alpine Access was approximately $149 million, which reflects
working capital adjustments. At quarter-end, the Company had approximately $98
million of borrowings outstanding under its revolving senior credit facility,
which as of September 30^th was down by $10 million since the acquisition
close. At quarter end, the senior credit facility had $147 million of undrawn
borrowing capacity.

Business Outlook

  * The Company's fourth quarter and full year 2012 business outlook reflects
    the contribution of the Alpine Access acquisition. Alpine Access' demand
    and operating margin trajectory in the fourth quarter remain consistent
    with internal expectations as the Company commences the integration of the
    acquisition, which is expected to be completed over the next eight to
    twelve months. Alpine Access' revenue and margin contribution aside, the
    Company expects underlying demand trends in the fourth quarter to improve
    slightly relative to the third quarter of 2012 and above its previously
    revised business outlook on August 6, 2012. The Company expects the
    better-than-expected demand trends to come from clients within the
    communications, financial services and technology verticals. Facility
    upgrade and transfer costs, however, are expected to somewhat mitigate
    some of the benefits from the better-than-expected demand trends in the
    fourth quarter;
  * The Company's revenues and adjusted diluted earnings per share assumptions
    for the fourth quarter and full year 2012 are based on foreign exchange
    rates as of October 2012.  Therefore, the continued volatility in foreign
    exchange rates between the U.S. dollar and the functional currencies of
    the markets the Company serves could have a significant impact, positive
    or negative, on revenues and adjusted earnings per share relative to the
    business outlook for the fourth quarter and full-year 2012. In addition,
    although Hurricane Sandy's impact on the Company's operations has been
    immaterial, there is a potential for client demand dynamics being impacted
    in the aftermath;
  * While the strategic actions in EMEA were completed in the third quarter of
    2012, the Company continues to make headway with rationalization of
    underutilized capacity in the U.S. related to the integration of the ICT
    acquisition. Separately, the Company achieved its 2012 gross seat addition
    target of approximately 3,700 seats at the end of the third quarter of
    2012. The Company expects the net seat count to decline by approximately
    2,000 seats by the end of 2012 relative to its year-end 2011 seat count;
  * The Company expects net interest expense of approximately $0.4 million in
    the fourth quarter related to borrowings outstanding under the revolving
    senior credit facility. The Company also expects other expense of
    approximately $0.5 million for the fourth quarter, with a combined
    interest and other expense of approximately $2.7 million for the full year
    2012. These amounts exclude the potential impact of any future foreign
    exchange gains or losses in other expense; and
  * The Company expects a higher effective tax rate for fourth quarter 2012
    relative to third quarter 2012, as the third quarter effective tax rate
    reflected the impact of Alpine Access-related transaction costs. For the
    full year 2012, the Company expects a lower effective tax rate relative to
    its previous business outlook on August 6, 2012 due to the aforementioned
    reason.

Considering the above factors, the Company anticipates the following financial
results for the three months ended December 31, 2012: 

  * Revenues in the range of $300.0 million to $305.0 million
  * Effective tax rate of approximately 18%; on a non-GAAP basis, an effective
    tax rate of approximately 23%
  * Fully diluted share count of approximately 43.0 million
  * Diluted earnings per share of approximately $0.18 to $0.23
  * *Non-GAAP diluted earnings per share in the range of $0.28 to $0.33
  * Capital expenditures in the range of $14.0 million to $18.0 million    

For the twelve months ended December 31, 2012, the Company anticipates the
following financial results: 

  * Revenues in the range of $1,123.0 million to $1,128.0 million
  * Effective tax rate of approximately 14%; on a non-GAAP basis, an effective
    tax rate of approximately 19%
  * Fully diluted share count of approximately 43.1 million
  * Diluted earnings per share of approximately $0.80  to $0.85
  * *Non-GAAP diluted earnings per share in the range of $1.17 to $1.22
  * Capital expenditures in the range of $40.0 million to $44.0 million    

*See "Business Outlook Reconciliation" (Exhibit 10) for Fourth Quarter and
Full-Year 2012 non-GAAP diluted earnings per share reconciliation.

Conference Call

The Company will conduct a conference call regarding the content of this
release tomorrow, November 6, 2012, at 10:00 a.m. Eastern Time. The conference
call will be carried live on the Internet. Instructions for listening to the
call over the Internet are available on the Investors page of SYKES' website
at www.sykes.com. A replay will be available at this location for two
weeks. This press release is also posted on the SYKES website at
http://investor.sykes.com/investor-relations/Investor-Resources/Investor-Relations-Home/default.aspx.

Non-GAAP Financial Measures

Non-GAAP income from continuing operations, non-GAAP operating margins,
non-GAAP tax rate, non-GAAP income from continuing operations, net of taxes,
per diluted share and non-GAAP income from continuing operations by segment
are important indicators of performance as these non-GAAP financial measures
assist readers in further understanding the Company's results from operations
and how management evaluates and measures such performance. These 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. Refer to the
exhibits in the release for detailed reconciliations.

About Sykes Enterprises, Incorporated

SYKES is a global leader in providing comprehensive customer contact
management solutions and services in the business process outsourcing (BPO)
arena. SYKES provides an array of sophisticated customer contact management
solutions to Fortune 1000 companies around the world, primarily in the
communications, financial services, healthcare, technology and transportation
and leisure industries. SYKES specializes in providing flexible, high quality
customer support outsourcing solutions with an emphasis on inbound technical
support and customer service. Headquartered in Tampa, Florida, with customer
contact management centers throughout the world, SYKES provides its services
through multiple communication channels encompassing phone, e-mail, web, chat
and social media. Utilizing its integrated onshore/offshore and virtual
at-home agent delivery models, SYKES serves its clients through two geographic
operating segments: the Americas (United States, Canada, Latin America, India
and the Asia Pacific region) and EMEA (Europe, Middle East and Africa). SYKES
also provides various enterprise support services in the Americas and
fulfillment services in EMEA, which include multi-lingual sales order
processing, payment processing, inventory control, product delivery and
product returns handling. For additional information please visit
www.sykes.com.

Forward-Looking Statements

This press release may contain "forward-looking statements," including SYKES'
estimates of 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. 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. 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,
and the ability of maintaining margins offshore (iii) SYKES' ability to
continue the growth of its support service revenues through additional
technical and customer contact centers, (iv) currency fluctuations, (v) the
timing of significant orders for SYKES' products and services, (vi) loss or
addition of significant clients, (vii) the early termination of contracts by
clients, (viii) SYKES' ability to recognize deferred revenue through delivery
of products or satisfactory performance of services, (ix) construction delays
of new or expansion of existing customer support centers, (x) difficulties or
delays in implementing SYKES' bundled service offerings, (xi) failure to
achieve sales, marketing and other objectives, (xii) variations in the terms
and the elements of services offered under SYKES' standardized contract
including those for future bundled service offerings, (xiii) changes in
applicable accounting principles or interpretations of such principles, (xiv)
delays in the Company's ability to develop new products and services and
market acceptance of new products and services, (xv) rapid technological
change, (xvi) political and country-specific risks inherent in conducting
business abroad, (xvii) SYKES' ability to attract and retain key management
personnel, (xviii) SYKES' ability to further penetrate into vertically
integrated markets, (xix) SYKES' ability to expand its global presence through
strategic alliances and selective acquisitions, (xx) SYKES' ability to
continue to establish a competitive advantage through sophisticated
technological capabilities, (xxi) the ultimate outcome of any lawsuits or
penalties (regulatory or otherwise), (xxii) SYKES' dependence on trends toward
outsourcing, (xxiii) risk of interruption of technical and customer contact
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,
(xxiv) the existence of substantial competition, (xxv) the ability to obtain
and maintain grants and other incentives, including tax holidays or otherwise,
(xxvi) risks related to the integration of the businesses of SYKES and Alpine
Access and (xxvii) 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.

Sykes Enterprises, Incorporated 
Condensed Consolidated Statements of Operations
(in thousands, except per share data) 
(Unaudited)
Exhibit 1
                                                                     
                                        Three Months Ended
                                        September 30, September 30, June 30,
                                        2012          2011          2012
                                                                     
Revenues                                 $ 280,526     $ 293,310     $ 264,802
Direct salaries and related costs       (183,628)     (189,082)     (174,630)
General and administrative              (87,905)      (82,116)      (81,533)
Net gain (loss) on disposal of property (199)          8            66
and equipment
Impairment of long-lived assets          (122)         (38)          --
Income from continuing operations       8,672         22,082        8,705
Total other income (expense), net       (839)         (244)         (446)
Income from continuing operations       7,833         21,838        8,259
before income taxes
Income taxes                            309           (2,969)       (511)
Income from continuing operations, net   8,142        18,869        7,748
of taxes 
(Loss) from discontinued operations,     --           (755)          --
net of taxes
(Loss) on sale of discontinued           --            --            --
operations, net of taxes
Net income (loss)                        $ 8,142       $ 18,114      $ 7,748
                                                                     
                                                                     
Net income (loss) per share:                                         
Basic:                                                               
 Continuing operations                   $ 0.19        $ 0.42        $ 0.18
 Discontinued operations                0.00          (0.02)        0.00
 Net income (loss) per share             $ 0.19        $ 0.40        $ 0.18
                                                                     
Diluted:                                                             
 Continuing operations                   $ 0.19        $ 0.42        $ 0.18
 Discontinued operations                0.00          (0.02)        0.00
 Net income (loss) per share             $ 0.19        $ 0.40        $ 0.18
                                                                     
Weighted average shares:                                             
 Basic                                   43,014        45,557        43,094
 Diluted                                 43,031        45,653        43,103

 
Sykes Enterprises, Incorporated 
Condensed Consolidated Statements of Operations
(in thousands, except per share data) 
(Unaudited)
Exhibit 2
                                                                  
                                                   Nine Months Ended
                                                   September 30, September 30,
                                                   2012          2011
                                                                  
Revenues                                            $ 823,426     $ 893,033
Direct salaries and related costs                  (536,758)     (581,952)
General and administrative                         (254,247)     (259,019)
Net gain (loss) on disposal of property and        (83)           3,432
equipment
Impairment of long-lived assets                     (271)         (764)
Income from continuing operations                  32,067        54,730
Total other income (expense), net                  (1,838)       (2,152)
Income from continuing operations before income    30,229        52,578
taxes
Income taxes                                       (3,569)       (6,224)
Income from continuing operations, net of taxes     26,660       46,354
(Loss) from discontinued operations, net of taxes   (820)        (3,091)
(Loss) on sale of discontinued operations, net of   (10,707)      --
taxes
Net income (loss)                                   $ 15,133      $ 43,263
                                                                  
                                                                  
Net income (loss) per share:                                      
Basic:                                                            
 Continuing operations                              $ 0.62        $ 1.01
 Discontinued operations                           (0.27)        (0.07)
 Net income (loss) per share                        $ 0.35        $ 0.94
                                                                  
Diluted:                                                          
 Continuing operations                              $ 0.62        $ 1.00
 Discontinued operations                           (0.27)        (0.06)
 Net income (loss) per share                        $ 0.35        $ 0.94
                                                                  
Weighted average shares:                                          
 Basic                                              43,130        46,106
 Diluted                                            43,179        46,202
                                                                  

Sykes Enterprises, Incorporated 
Segment Results
(in thousands, except per share data) 
(Unaudited)
Exhibit 3
                                                                     
                                                                     
                                        Three Months Ended
                                        September 30, September 30, June 30,
                                        2012          2011          2012
                                                                     
Revenues:                                                            
 Americas                                $ 237,541     $ 241,481     $ 221,214
 EMEA                                   42,985        51,829        43,588
 Total                                   $ 280,526     $ 293,310     $ 264,802
                                                                     
Operating Income:                                                    
 Americas                                $ 21,654      $ 30,950      $ 20,778
 EMEA                                   2,359         1,893         (886)
 Corporate G&A expenses                 (15,341)      (10,761)      (11,187)
 Income from continuing operations      8,672         22,082        8,705
                                                                     
 Total other income (expense), net      (839)         (244)         (446)
 Income taxes                           309           (2,969)       (511)
                                                                     
 Income from continuing operations, net  $ 8,142       $ 18,869      $ 7,748
of taxes 
                                                                     
                                                                     
                                                                     
                                        Nine Months Ended            
                                        September 30, September 30,  
                                        2012          2011           
                                                                     
Revenues:                                                            
 Americas                                $ 688,841     $ 735,559     
 EMEA                                   134,585       157,474        
 Total                                   $ 823,426     $ 893,033     
                                                                     
Operating Income:                                                    
 Americas                                $ 69,388      $ 89,353      
 EMEA                                   1,861         1,171          
 Corporate G&A expenses                 (39,182)      (35,794)       
 Income from continuing operations      32,067        54,730         
                                                                     
 Total other income (expense), net      (1,838)       (2,152)        
 Income taxes                           (3,569)       (6,224)        
                                                                     
 Income from continuing operations, net  $ 26,660      $ 46,354      
of taxes 

                                                                        
Sykes Enterprises, Incorporated                                         
Condensed Consolidated Balance Sheets                                   
(in thousands, except seat data)                                        
(Unaudited)                                                             
Exhibit 4                                                               
                                                                        
                                   September 30,      December 31,      
                                   2012               2011              
                                                                        
Assets:                                                                 
Current assets                      $ 460,591          $ 482,074        
Property and equipment, net        99,411             91,080            
Goodwill & intangibles, net        301,018            165,814           
Other noncurrent assets            43,595             30,162            
 Total assets                       $ 904,615          $ 769,130        
                                                                        
Liabilities & Shareholders'                                             
Equity:
Current liabilities                 $ 166,426          $ 149,285        
Noncurrent liabilities             146,601            46,279            
Shareholders' equity               591,588            573,566           
 Total liabilities and              $ 904,615          $ 769,130        
shareholders' equity
                                                                        
                                                                        
                                                                        
Sykes Enterprises, Incorporated                                         
Supplementary Data                                                      
                                                                        
                                   Q3 2012            Q3 2011           
                                                                        
Geographic Mix (% of Total                                              
Revenues):
 Americas ^(1)                     85%                82%               
 Europe, Middle East & Africa      15%                18%               
(EMEA)
 Total                             100%               100%              
                                                                        
^(1) Includes the United States, Canada, Latin America, South Asia and
the Asia Pacific (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.
                                                                        
                                                                        
                                   Q3 2012            Q3 2011           
                                                                        
Vertical Industry Mix (% of Total Revenues):                            
 Communications                    32%                30%               
 Financial Services                30%                28%               
 Technology / Consumer             16%                20%               
 Transportation & Leisure          9%                 9%                
 Healthcare                        8%                 7%                
 Other                             5%                 6%                
 Total                             100%               100%              
                                                                        
                                                                        
                                   Seat Capacity (2)
                                   Q3 2012            Q3 2011          Q2 2012
                                                                        
 Americas ^(3)                     34,900             35,900           35,800
 EMEA                              5,300              5,900            5,700
 Total                             40,200             41,800           41,500
                                                                        
 Offshore                          22,400             22,600           23,600
                                                                        
                                                                        
                                   Capacity Utilization
                                   Q3 2012            Q3 2011          Q2 2012
                                                                        
 Americas ^(3)                     72%                73%              69%
 EMEA                              78%                70%              70%
 Total                             73%                72%              70%
                                                                        
 Offshore                          77%                75%              72%
                                                                        
^(2) The seat capacity and capacity utilization data are related to the
Company's brick-and-mortar call centers. At the end of third quarter 2012, the
Company had approximately 2,500 agent FTEs working virtually from home both in
the U.S. and Canada, including 1,900 from Alpine Access.
^(3) Americas data includes offshore as some clients in the U.S. are serviced
from offshore geographies, including The Philippines, Costa Rica, etc.

 
Sykes Enterprises, Incorporated 
Cash Flow from Operations
(in thousands)
(Unaudited)
Exhibit 5
                                                            
                                                            
                                             Three Months Ended
                                             September 30, September 30,
                                             2012          2011
                                                            
Cash Flow From Operating Activities:                        
 Net income (loss)                            $ 8,142       $ 18,114
 Depreciation and amortization               12,356        13,364
 Changes in assets and liabilities and other 9,951         14,373
 Net cash provided by operating activities    $ 30,449      $ 45,851
                                                            
Capital expenditures                          $ 12,549      $ 8,421
Cash interest paid                            $ 1,198       $ 266
Cash taxes paid                               $ 3,369       $ 6,143
                                                            
                                                            
                                             Nine Months Ended
                                             September 30, September 30,
                                             2012          2011
                                                            
Cash Flow From Operating Activities:                        
 Net income (loss)                            $ 15,133      $ 43,263
 Depreciation and amortization               36,677        41,630
 Changes in assets and liabilities and other 3,524         (4,994)
 Net cash provided by operating activities    $ 55,334      $ 79,899
                                                            
Capital expenditures                          $ 26,355      $ 21,788
Cash interest paid                            $ 1,726       $ 787
Cash taxes paid                               $ 25,673      $ 18,233

 
Sykes Enterprises, Incorporated 
Reconciliation of Non-GAAP Financial Information
(in thousands, except per share data) 
(Unaudited) 
Exhibit 6
                                                                       
                                                                       
                                          Three Months Ended
                                          September 30, September 30, June 30,
                                          2012          2011          2012
                                                                       
GAAP income from continuing operations    $ 8,672       $ 22,082      $ 8,705
Adjustments:                                                           
Acquisition-related severance &            697           --            --
consulting engagement costs
Acquisition-related depreciation &
amortization of property & equipment and  3,766         2,987         3,039
intangible write-ups
Merger & integration costs                 3,045         49            106
EMEA restructuring                         104           --            76
Other                                      418           (437)         550
Non-GAAP income from continuing           $ 16,702      $ 24,681      $ 12,476
operations
                                                                       
                                                                       
                                          Three Months Ended
                                          September 30, September 30, June 30,
                                          2012          2011          2012
                                                                       
GAAP income from continuing operations,   $ 0.19        $ 0.42        $ 0.18
net of taxes, per diluted share
Adjustments:                                                           
Acquisition-related severance &           0.01           --            --
consulting engagement costs
Acquisition-related depreciation &
amortization of property & equipment and  0.06          0.05          0.05
intangible write-ups
Merger & integration costs                0.05          0.00          0.00
EMEA restructuring                        0.00                        0.00
Other                                     0.00          (0.01)        0.01
Non-GAAP income from continuing
operations, net of taxes, per diluted     $ 0.31        $ 0.46        $ 0.24
share

 
Sykes Enterprises, Incorporated 
Reconciliation of Non-GAAP Financial Information By Segment
(in thousands) 
(Unaudited) 
Exhibit 7
                                                                       
                                                                       
                    Americas            EMEA                Other ^(1)
                    Three Months Ended  Three Months Ended  Three Months Ended
                    September September September September September September
                    30,       30,       30,       30,       30,       30,
                    2012      2011      2012      2011      2012      2011
                                                                       
GAAP income from                                            ($        ($
continuing           $ 21,654  $ 30,950 $ 2,359   $ 1,893   15,341)   10,761)
operations
Adjustments:                                                           
Acquisition-related
severance &          320                                     377       
consulting
engagement costs
Acquisition-related
depreciation &
amortization of
property &          3,766     2,987                                    
equipment and
intangible
write-ups
Merger &                      38                  11         3,045     
integration costs
EMEA restructuring                       104                           
Other                418       (437)                                   
Non-GAAP income                                             ($        ($
from continuing     $ 26,158  $ 33,538  $ 2,463   $ 1,904   11,919)   10,761)
operations
                                                                       
                    Americas            EMEA                Other ^(1)
                    Three Months Ended  Three Months Ended  Three Months Ended
                    September June 30,  September June 30,  September June 30,
                    30,                 30,                 30,
                    2012      2012      2012      2012      2012      2012
                                                                       
GAAP income from                                            ($        ($
continuing          $ 21,654  $ 20,778  $ 2,359   ($ 886)   15,341)   11,187)
operations
Adjustments:                             --                            
Acquisition-related
severance &          320       --        --        --        377       --
consulting
engagement costs
Acquisition-related
depreciation &
amortization of
property &           3,766    3,039      --        --        --        --
equipment and
intangible
write-ups
Merger &             --        106       --        --        3,045     --
integration costs
EMEA restructuring   --        --        104       76        --        --
Other                418       550       --        --        --        --
Non-GAAP income                                             ($        ($
from continuing     $ 26,158  $ 24,473  $ 2,463   ($ 810)   11,919)   11,187)
operations
                                                                       
^(1) Other includes
corporate and other                                                    
costs. 

 
Sykes Enterprises, Incorporated 
Reconciliation of Non-GAAP Financial Information
(in thousands, except per share data) 
(Unaudited) 
Exhibit 8
                                                                  
                                                   Nine Months Ended
                                                   September 30, September 30,
                                                   2012          2011
GAAP income from continuing operations             $ 32,067      $ 54,730
Adjustments:                                                      
Acquisition-related severance & consulting          697           126
engagement costs
Acquisition-related depreciation & amortization of 9,819         9,039
property & equipment and intangible write-ups
Merger & integration costs                          3,151         668
EMEA restructuring                                 1,279          
Other                                               968           (1,305)
Non-GAAP income from continuing operations         $ 47,981      $ 63,258
                                                                  
                                                                  
                                                   Nine Months Ended
                                                   September 30, September 30,
                                                   2012          2011
GAAP income from continuing operations, net of     $ 0.62        $ 1.00
taxes, per diluted share
Adjustments:                                                      
Acquisition-related severance & consulting         0.01           --
engagement costs
Acquisition-related depreciation & amortization of 0.16          0.14
property & equipment and intangible write-ups
Merger & integration costs                         0.06          0.01
EMEA restructuring                                 0.03           
Other                                              0.01          (0.02)
Non-GAAP income from continuing operations, net of $ 0.89        $ 1.13
taxes, per diluted share

 
 
Sykes Enterprises, Incorporated 
Reconciliation of Non-GAAP Financial Information By Segment
(in thousands) 
(Unaudited) 
Exhibit 9
                                                                       
                    Americas            EMEA                Other ^(1)
                    Nine Months Ended   Nine Months Ended   Nine Months Ended
                    September September September September September September
                    30,       30,       30,       30,       30,       30,
                    2012      2011      2012      2011      2012      2011
GAAP income from                                            ($        ($
continuing          $ 69,388  $ 89,353  $ 1,861   $ 1,171   39,182)   35,794)
operations
Adjustments:                                                           
Acquisition-related
severance &          320       --                            377       126
consulting
engagement costs
Acquisition-related
depreciation &
amortization of
property &          9,819     9,039                                    
equipment and
intangible
write-ups
Merger &             106      288                 367        3,045    13
integration costs
EMEA restructuring                       1,179               100       
Other                968       (3,483)                                 2,178
Non-GAAP income                                             ($        ($
from continuing     $ 80,601  $ 95,197  $ 3,040   $ 1,538   35,660)   33,477)
operations
                                                                       
^(1) Other includes
corporate and other                                                    
costs. 

                                                               
Sykes Enterprises, Incorporated                                
Reconciliation of Non-GAAP Financial Information               
(Unaudited)                                                    
Exhibit 10                                                     
                                                               
                                                              Business Outlook
                                                              Fourth Quarter
                                                              2012
                                                               
GAAP income from continuing operations, net of taxes, per     $0.18 - $0.23
diluted share
Adjustments:                                                   
Acquisition-related severance & consulting engagement costs    
Acquisition-related depreciation & amortization of property & 0.08
equipment and intangible write-ups
 Merger & integration costs                                   0.01
 EMEA restructuring                                            
 Other                                                        0.01
Non-GAAP income from continuing operations, net of taxes, per $0.28 - $0.33
diluted share
                                                               
                                                              Business Outlook
                                                              Fourth Quarter
                                                              2012
                                                               
GAAP income from continuing operations, net of taxes, per     $0.80 - $0.85
diluted share
Adjustments:                                                   
Acquisition-related severance & consulting engagement costs    0.01
Acquisition-related depreciation & amortization of property & 0.24
equipment and intangible write-ups
 Merger & integration costs                                   0.07
 EMEA restructuring                                           0.03
 Other                                                         0.02
Non-GAAP income from continuing operations, net of taxes, per $1.17 - $1.22
diluted share

CONTACT: For additional information contact:
         Subhaash Kumar
         Sykes Enterprises, Incorporated
         (813) 233-7143
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