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Sykes Enterprises, Incorporated Reports Second-Quarter 2013 Financial Results

Sykes Enterprises, Incorporated Reports Second-Quarter 2013 Financial Results

  --In-Line Revenues, Productivity Gains and a Shift in Certain Ramps to Q3
                                    Drive
     Better-Than-Expected Earnings Per Share Relative to Business Outlook

              --Facility Transfers and Rationalization Continue

                --Reiterating Full-Year 2013 Business Outlook

TAMPA, Fla., Aug. 5, 2013 (GLOBE NEWSWIRE) -- Sykes Enterprises, Incorporated
("SYKES" or the "Company") (Nasdaq:SYKE), a global leader in providing
comprehensive outsourced customer contact management solutions and services in
the business process outsourcing (BPO) arena, announced today its financial
results for the second quarter ended June 30, 2013.

Second Quarter 2013 Financial Highlights

  *Second quarter 2013 revenues from continuing operations of $304.7 million
    increased $39.9 million, or 15.1%, from $264.8 million in the comparable
    quarter last year; second quarter 2013 revenues include $25.1 million in
    revenue contribution from the Alpine Access acquisition
    
  *On a constant currency basis and excluding Alpine Access' revenue
    contribution of $25.1 million, second quarter 2013 revenues from
    continuing operations increased 5.6% comparably, driven largely by the
    expansion of existing and some new client programs across the
    communications, financial services, technology and transportation
    verticals
    
  *Second quarter 2013 operating margin from continuing operations was 1.8%
    versus 3.3% in the same period last year; on a non-GAAP basis (see section
    titled "Non-GAAP Financial Measures" for an explanation and see Exhibit 6
    for reconciliation), second quarter 2013 operating margin from continuing
    operations decreased to 3.7% versus 4.7% in the same period last year,
    with the decrease due to a combination of costs related to seat capacity
    build out and client program ramp ups, demand softness in the healthcare
    vertical without a commensurate reduction in labor costs and approximately
    60 basis points in unfavorable foreign currency movements resulting from
    appreciating functional currencies versus the U.S. dollar
    
  *Second quarter 2013 diluted earnings per share from continuing operations
    were $0.13 versus $0.18 in the comparable quarter last year, with the
    reduction due principally to the above-mentioned factors, partially
    mitigated by a tax benefit during the second quarter of 2013
    
  *On a non-GAAP basis, second quarter 2013 diluted earnings per share from
    continuing operations were $0.22 versus $0.24 in the same period last year
    (see Exhibit 6 for reconciliation) and versus the May 2013 business
    outlook range of $0.18 to $0.22, with the comparable decrease driven
    largely by the above-mentioned factors; relative to the May 2013 business
    outlook range, the diluted earnings per share were in line despite a
    higher than expected effective tax rate
    
  *Consolidated capacity utilization rate increased to 75% in the second
    quarter 2013 from 70% in the comparable period last year due to a
    combination of higher comparable demand in both the Americas and EMEA
    regions, on-going rationalization of seat capacity primarily in the
    Americas region and a shift in the timing of certain capacity additions to
    the third quarter

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), increased 15.3% to $255.2 million, or 83.7% of
total revenues, for the second quarter of 2013 compared to $221.2 million, or
83.5% of total revenues, in the same prior year period. Alpine Access'
revenues were $25.1 million, which exclude approximately $4.0 million of
revenue contribution from SYKES' legacy at-home agent program in the U.S.,
which was merged into the Alpine Access at-home agent platform. On a constant
currency basis and excluding Alpine Access' revenue contribution of $25.1
million, second quarter 2013 Americas revenues from continuing operations
increased 4.4% comparably, driven largely by the expansion of existing and new
client programs across the communications, financial services and technology
verticals, all of which more than offset demand softness in the healthcare and
transportation verticals.

During the quarter, revenues from continuing operations generated from
services provided offshore decreased to 45% from 50% in the same period last
year principally due to a mix-shift in revenues to North America driven by
Alpine Access, whose clients reside in and are serviced from the U.S. and
Canada.

Sequentially, revenues from continuing operations generated from the Americas
region were unchanged compared to $255.2 million, or 84.7% of total revenues,
in the first quarter of 2013. On a constant currency basis, second quarter
2013 Americas revenues increased 0.8% over the first quarter, driven by the
expansion of existing and new client programs across the communications and
financial services verticals, more than offsetting some of the demand
seasonality in both the healthcare and transportation verticals.

The Americas income from continuing operations for the second quarter of 2013
decreased 7.5% to $19.2 million, with an operating margin of 7.5% versus 9.4%
in the comparable quarter last year. On a non-GAAP basis, the Americas
operating margin from continuing operations decreased to 9.7% from 11.1% in
the comparable quarter last year due to a combination of costs related to seat
capacity build out and client program ramp ups, some demand softness in the
healthcare vertical without a commensurate reduction in labor costs and
approximately 60 basis points in unfavorable foreign currency movements
resulting from appreciating functional currencies versus the U.S. dollar (see
Exhibit 7 for reconciliation).

Sequentially, the Americas income from continuing operations for the second
quarter of 2013 decreased 1.5% to $19.2 million, with an operating margin of
7.5% versus 7.6% in the first quarter of 2013.On a non-GAAP basis, the
Americas operating margin from continuing operations increased to 9.7% from
9.5%. The increase was due largely to higher sequential demand and better
agent productivity (see Exhibit 7 for reconciliation).

EMEA Region

Revenues from continuing operations from the Company's Europe, Middle East and
Africa (EMEA) region increased 13.7% to $49.6 million, representing 16.3% of
total revenues for the second quarter of 2013, compared to $43.6 million, or
16.5% of total revenues, in the same prior year period. On a constant currency
basis, EMEA revenues from continuing operations increased 11.9%, driven
largely by the expansion of new and existing client programs across the
communications, transportation and financial services verticals, all of which
more than offset the demand softness in the technology vertical.

Sequentially, revenues from continuing operations from the Company's EMEA
region increased 7.7% to $49.6 million, or 16.3% of SYKES' total revenues,
versus $46.0 million, or 15.3% of SYKES' total revenues, in the first quarter
of 2013.On a constant currency basis, EMEA revenues from continuing
operations increased 9.1% sequentially, driven largely by the above-mentioned
factors.

The EMEA region's loss from continuing operations for the second quarter of
2013 was $1.9 million, or negative 3.9% of EMEA revenues, versus an operating
loss of $0.9 million, or negative 2.0% of revenues, in the comparable quarter
last year.On a non-GAAP basis, the operating margin from continuing
operations was a negative 3.9% versus a negative 1.9% in the same period last
year, driven largely by a combination of costs related to seat capacity build
out and client program ramp ups in support of anticipated future increases in
demand (see Exhibit 7 for reconciliation).

Sequentially, the EMEA region's loss from continuing operations for the second
quarter of 2013 was $1.9 million, or negative 3.9% of EMEA revenues, versus
income of $1.9 million, or 4.0% of revenues, in the first quarter of 2013. On
a non-GAAP basis, the EMEA operating margin from continuing operations was a
negative 3.9% versus 4.0% due largely to the aforementioned factors (see
Exhibit 7 for reconciliation).

Corporate G&A Expenses

Corporate G&A expenses increased to $11.7 million, or 3.8% of revenues, in the
second quarter of 2013, compared to $11.2 million, or 4.2% of revenues, in the
comparable quarter last year, with the percentage of revenue decline on a
comparable basis driven by expense leverage. On a non-GAAP basis, corporate
G&A expenses increased to $11.6 million from $11.2 million, but decreased to
3.8% of revenues from 4.2% of revenues in the second quarter of 2012, with the
percentage of revenue decline on a comparable basis driven by the
aforementioned factor (see Exhibit 7 for reconciliation).

Sequentially, corporate G&A expenses increased slightly to $11.7 million from
$11.5 million, but remained unchanged at 3.8% of revenues on a comparable
basis relative to the first quarter of 2013. On a non-GAAP basis, corporate
G&A expenses increased by $0.6 million to $11.6 million in the second quarter
of 2013, but were essentially unchanged at 3.7% of revenues (see Exhibit 7 for
reconciliation).

Interest & Other Expense and Taxes

Interest and other expense for the second quarter of 2013 totaled
approximately $0.7 million compared to interest and other expense of $0.4
million for the same period in the prior year. The increase in interest and
other expense was due to a combination of higher realized and unrealized
foreign currency transactions losses and higher interest expense related
largely to the utilization of the credit facility in connection with the
Alpine Access acquisition. Realized and unrealized foreign currency
transactions losses result primarily from U.S. dollar denominated assets and
liabilities held by the Company's foreign subsidiaries.

The Company recorded a tax benefit of 14.0% for the second quarter of 2013
versus a tax rate of 6.2% in the same period last year and compared to an
estimated 0% provided in the Company's May 2013 business outlook. The tax
benefit in the second quarter of 2013 relative to the second quarter of 2012
and compared to the May 2013 business outlook was due to a combination of
discrete adjustments, operating losses in certain tax paying jurisdictions
related to program ramp ups and a shift in the geographic mix of earnings.

On a non-GAAP basis, the second quarter 2013 effective tax rate was 8.0%
compared to 13.3% in the same period last year and above the estimated 0%
provided in the Company's May 2013 business outlook. Both the decrease in the
effective tax rate on a comparable basis and the increase in the effective tax
rate relative to the May 2013 business outlook were due principally to a shift
in the geographic mix of earnings.

Liquidity and Capital Resources

The Company's balance sheet at June 30, 2013 remained strong with cash and
cash equivalents of $167.4 million. Approximately $163.3 million, or 97.5% of
the cash balance, 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.
During the quarter, the Company repurchased approximately 272 thousand shares
of its common stock at prices ranging from $15.61 to $16.00 per share for a
total cost of $4.3 million. The Company has approximately 1.7 million shares
remaining under its 5 million share repurchase program authorized August 2011.
At June 30, 2013, the Company had approximately $113.0 million of borrowings
outstanding under its revolving senior credit facility, up from $111.0 million
at March 31, 2013.The increase in borrowings sequentially was due to a
combination of factors, including expansion-related uses of working capital
and share repurchases. The amount available under the Company's credit
facility was $132.0 million at June 30, 2013.

Business Outlook

The assumptions driving the business outlook for the third quarter and
full-year 2013 are as follows:

  *The Company expects the overall revenue and diluted earnings per share
    outlook for the full year 2013 to remain consistent with its May 2013
    business outlook;
    
  *The Company's revenues and earnings per share assumptions for the third
    quarter and full year 2013 are based on foreign exchange rates as of July
    2013. 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 impact, positive or negative, on revenues and
    both GAAP and non-GAAP earnings per share relative to the business outlook
    for the third quarter and full-year;
    
  *The Company has merged the Alpine and SYKES legacy at-home agent platforms
    in the U.S. The Company, meanwhile, continues to focus on the operational
    integration of the Alpine Access acquisition, which is expected to be
    completed during the second-half of 2013. The integration process is
    expected to result in long-term operating efficiencies;
    
  *The Company also remains on track to add approximately 6,000 seats on a
    gross basis in 2013.During the second quarter, the Company added
    approximately 1,200 seats on a gross basis while net seats declined by
    approximately 100 sequentially. For the first six months of 2013, the
    Company added approximately 2,700 on a gross basis with the net seat count
    up by approximately 1,100. Total seat count on a net basis for the full
    year is still expected to increase by approximately 1,000 seats as a
    number of the anticipated seat additions in 2013 are related to facility
    transfers;
    
  *The Company anticipates interest and other expense of approximately $0.9
    million for the third quarter and $2.7 million for the full year 2013.
    Included in the aforementioned amounts is net interest expense of $0.4
    million and $1.5 million for the third quarter and full year 2013,
    respectively, related to the debt associated with the acquisition of
    Alpine Access; and
    
  *The Company's full-year 2013 effective tax rate is expected to remain
    unchanged relative to its May 2013 business outlook.

Considering the above factors, the Company anticipates the following financial
results for the three months ending September 30, 2013:

  *Revenues in the range of $305.0 million to $310.0 million
  *Effective tax rate of approximately 36%; on a non-GAAP basis, an effective
    tax rate of approximately 36%
  *Fully diluted share count of approximately 42.8 million
  *Diluted earnings per share of approximately $0.19 to $0.22
  ***Non-GAAP diluted earnings per share in the range of $0.26 to $0.29
  *Capital expenditures in the range of $20.0 million to $25.0 million 

For the twelve months ending December 31, 2013, the Company anticipates the
following financial results:

  *Revenues in the range of $1,230.0 million to $1,240.0 million
  *Effective tax rate of approximately 25%; on a non-GAAP basis, an effective
    tax rate of approximately 27%
  *Fully diluted share count of approximately 42.9 million
  *Diluted earnings per share of approximately $0.89 to $0.98
  ***Non-GAAP diluted earnings per share in the range of $1.19 to $1.28
  *Capital expenditures in the range of $55.0 million to $65.0 million 

* See "Business Outlook Reconciliation" (Exhibit 10) for third quarter and
full-year 2013 non-GAAP diluted earnings per share reconciliation.

Conference Call

The Company will conduct a conference call regarding the content of this
release tomorrow, August 6, 2013, at 10:00 a.m. Eastern Daylight Savings
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 a 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,
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
                                             June 30,   June 30,   March 31,
                                              2013       2012       2013
                                                                 
Revenues                                      $304,735 $264,802 $301,244
Direct salaries and related costs             (210,141)  (174,630)  (203,706)
General and administrative                    (75,247)   (69,642)   (73,733)
Depreciation, net                             (10,017)   (9,816)    (10,169)
Amortization of intangibles                   (3,713)    (2,009)    (3,759)
Income from continuing operations             5,617      8,705      9,877
Total other income (expense), net             (709)      (446)      (159)
Income from continuing operations before      4,908      8,259      9,718
income taxes
Income taxes                                  688        (511)      (3,200)
Income from continuing operations, net of     5,596      7,748      6,518
taxes
(Loss) from discontinued operations, net of   --        --        --
taxes
(Loss) on sale of discontinued operations,    --        --        --
net of taxes
Net income                                    $5,596   $7,748   $6,518
                                                                 
                                                                 
Net income (loss) per share:                                      
Basic:                                                            
Continuing operations                         $0.13    $0.18    $0.15
Discontinued operations                       0.00       0.00       0.00
Net income (loss) per share                   $0.13    $0.18    $0.15
                                                                 
Diluted:                                                          
Continuing operations                         $0.13    $0.18    $0.15
Discontinued operations                       0.00       0.00       0.00
Net income (loss) per share                   $0.13    $0.18    $0.15
                                                                 
Weighted average shares:                                          
Basic                                         42,936    43,094    43,036
Diluted                                       42,954    43,103    43,052



Sykes Enterprises, Incorporated
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Exhibit 2
                                                                  
                                                        Six Months Ended
                                                        June 30,   June 30,
                                                         2013       2012
                                                                  
Revenues                                                 $605,979 $542,900
Direct salaries and related costs                        (413,847)  (353,130)
General and administrative                               (148,980)  (141,906)
Depreciation, net                                        (20,186)   (20,450)
Amortization of intangibles                              (7,472)    (3,870)
Impairment of long-lived assets                          --        (149)
Income from continuing operations                        15,494     23,395
Total other income (expense), net                        (868)      (999)
Income from continuing operations before income taxes    14,626     22,396
Income taxes                                             (2,512)    (3,878)
Income from continuing operations, net of taxes          12,114    18,518
(Loss) from discontinued operations, net of taxes        --        (820)
Gain (loss) on sale of discontinued operations, net of   --        (10,707)
taxes
Net income (loss)                                        $12,114  $6,991
                                                                  
                                                                  
Net income (loss) per share:                                       
Basic:                                                             
Continuing operations                                    $0.28    $0.43
Discontinued operations                                  0.00       (0.27)
Net income (loss) per share                              $0.28    $0.16
                                                                  
Diluted:                                                           
Continuing operations                                    $0.28    $0.43
Discontinued operations                                  0.00       (0.27)
Net income (loss) per share                              $0.28    $0.16
                                                                  
Weighted average shares:                                           
Basic                                                    42,992    43,205
Diluted                                                  43,011    43,256



Sykes Enterprises, Incorporated
Segment Results
(in thousands, except per share data)
(Unaudited)
Exhibit 3

                                             Three Months Ended
                                             June 30,   June 30,   March 31,
                                              2013       2012       2013
                                                                 
Revenues:                                                         
Americas                                      $255,163 $221,214 $255,214
EMEA                                          49,572     43,588     46,030
Total                                         $304,735 $264,802 $301,244
                                                                 
Operating Income:                                                 
Americas                                      $19,221  $20,778  $19,522
EMEA                                          (1,924)    (886)      1,855
Corporate G&A expenses                        (11,680)   (11,187)   (11,500)
Income from continuing operations             5,617      8,705      9,877
                                                                 
Total other income (expense), net             (709)      (446)      (159)
Income taxes                                  688        (511)      (3,200)
                                                                 
Income from continuing operations, net of     $5,596   $7,748   $6,518
taxes
                                                                 
                                                                 
                                             Six Months Ended      
                                             June 30,   June 30,   
                                              2013       2012
                                                                 
Revenues:                                                         
Americas                                      $510,377 $451,301 
EMEA                                          95,602     91,599     
Total                                         $605,979 $542,900 
                                                                 
Operating Income:                                                 
Americas                                      $38,743  $47,734  
EMEA                                          (69)       (498)      
Corporate G&A expenses                        (23,180)   (23,841)   
Income from continuing operations             15,494     23,395     
                                                                 
Total other income (expense), net             (868)      (999)      
Income taxes                                  (2,512)    (3,878)    
                                                                 
Income from continuing operations, net of     $12,114  $18,518  
taxes



Sykes Enterprises, Incorporated
Condensed Consolidated Balance Sheets
(in thousands, except seat data)
(Unaudited)
Exhibit 4
                                                                    
                                                                    
                                   June 30,          December 31,     
                                    2013              2012
                                                                    
Assets:                                                              
Current assets                      $494,199        $467,342       
Property and equipment, net         105,723           101,295          
Goodwill & intangibles, net         284,525           296,268          
Other noncurrent assets             41,113            43,784           
Total assets                        $925,560        $908,689       
                                                                    
Liabilities & Shareholders' Equity:                                  
Current liabilities                 $164,610        $164,583       
Noncurrent liabilities              157,189           137,842          
Shareholders' equity                603,761           606,264          
Total liabilities and shareholders' $925,560        $908,689       
equity
                                                                    
                                                                    
                                                                    
Sykes Enterprises, Incorporated                                        
Supplementary Data                                                     
                                                                    
                                   Q2 2013           Q2 2012          
                                                                    
Geographic Mix (% of Total                                           
Revenues):
Americas (1)                        84%               84%              
Europe, Middle East & Africa (EMEA) 16%               16%              
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.
                                                                    
                                                                    
                                   Q22013           Q22012          
                                                                    
Vertical Industry Mix (% of Total Revenues):                          
Communications                      34%               30%              
Financial Services                  29%               31%              
Technology / Consumer               15%               16%              
Transportation & Leisure            9%                10%              
Healthcare                          6%                8%               
Other                               7%                5%               
Total                               100%              100%             
                                                                    
                                                                    
                                   Seat Capacity ^(3)
                                   Q2 2013           Q2 2012          Q1 2013
                                                                    
Americas ^ (2)                      34,500            35,800           35,100
EMEA                                5,800             5,700            5,300
Total                               40,300            41,500           40,400
                                                                    
Offshore                            22,000            23,600           22,900
                                                                    
                                                                    
                                   Capacity Utilization
                                   Q2 2013           Q2 2012          Q1 2013
                                                                    
Americas ^(2)                       74%               69%              72%
EMEA                                81%               70%              82%
Total                               75%               70%              73%
                                                                    
Offshore                            77%               72%              76%
                                                                    
^(2) Americas data includes offshore as some clients in the U.S. are serviced
from offshore geographies, including The Philippines, Costa Rica, etc.
                                                                    
^(3) The seat capacity and capacity utilization data are related to the
Company's brick-and-mortar call centers. At the end of the second quarter
2013, the Company had approximately 2,500 agent FTEs working virtually from
home both in the U.S. and Canada, including 2,200 from Alpine Access.



Sykes Enterprises, Incorporated
Cash Flow from Operations
(in thousands)
(Unaudited)
Exhibit 5
                                                    
                                                    Three Months Ended
                                                    June 30,   June 30,
                                                     2013       2012
                                                              
Cash Flow From Operating Activities:                           
Net income (loss)                                    $5,596   $7,748
Depreciation, net                                    10,017     9,816
Amortization of intangibles                          3,713      2,009
Changes in assets and liabilities and other          (12,166)   1,194
Net cash provided by (used for) operating activities $7,160   $20,767
                                                              
Capital expenditures                                 $12,995  $6,988
Cash interest paid                                   $549     $222
Cash taxes paid                                      $3,464   $16,930
                                                              
                                                              
                                                    Six Months Ended
                                                    June 30,   June 30,
                                                     2013       2012
                                                              
Cash Flow From Operating Activities:                           
Net income (loss)                                    $12,114  $6,991
Depreciation, net                                    20,186     20,450
Amortization of intangibles                          7,472      3,870
Changes in assets and liabilities and other          (45,425)   (6,426)
Net cash provided by (used for) operating activities $(5,653) $24,885
                                                              
Capital expenditures                                 $26,061  $13,806
Cash interest paid                                   $1,030   $528
Cash taxes paid                                      $8,481   $22,304
                                                              



Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(in thousands, except per share data)
(Unaudited)
Exhibit 6
                                                                  
                                                  Three Months Ended
                                                  June 30, June 30, March 31,
                                                   2013     2012     2013
                                                                  
GAAP income from continuing operations             $5,617   $8,705   $9,877
Adjustments:                                                       
Acquisition-related severance & consulting         1,307   --      366
engagement costs
Acquisition-related depreciation & amortization of 4,202   3,039   4,435
property & equipment and intangible write-ups
Merger & integration costs                         51      656     320
EMEA restructuring                                 3       76      7
Other                                              --      --      --
Non-GAAP income from continuing operations         $11,180  $12,476  $15,005
                                                                  
                                                                  
                                                  Three Months Ended
                                                  June 30, June 30, March 31,
                                                   2013     2012     2013
                                                                  
GAAP income from continuing operations, net of     $0.13    $0.18    $0.15
taxes, per diluted share
Adjustments:                                                       
Acquisition-related severance & consulting         0.02     --      0.01
engagement costs
Acquisition-related depreciation & amortization of 0.07     0.05     0.07
property & equipment and intangible write-ups
Merger & integration costs                         --      0.01    --
EMEA restructuring                                 --      --      --
Other                                              --      --      --
Non-GAAP income from continuing operations, net of $0.22    $0.24    $0.23
taxes, per diluted 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    Three Months Ended
                                           Ended
                       June 30,  June 30,  June 30, June   June 30,  June 30,
                      2013      2012      2013     30,    2013      2012
                                                    2012
                                                               
GAAP income from       $19,221 $20,778 ($1,924) ($886) ($11,680) ($11,187)
continuing operations
Adjustments:                                                    
Acquisition-related
severance & consulting 1,307    --       --      --    --       --
engagement costs
Acquisition-related
depreciation &
amortization of        4,202     3,039     --      --    --       --
property & equipment
and intangible
write-ups
Merger & integration   --       656      --      --    51       --
costs
EMEA restructuring     --       --       3       76    --       --
Other                  --       --       --      --    --       --
Non-GAAP income from   $24,730   $24,473   ($1,921) ($810) ($11,629) ($11,187)
continuing operations
                                                               
                      Americas            EMEA           Other ^(1)
                      Three Months Ended  Three Months    Three Months Ended
                                           Ended
                       June 30,  March 31, June 30, March  June 30,  March 31,
                      2013      2013      2013     31,    2013      2013
                                                    2013
                                                               
GAAP income from       $19,221   $19,522 ($1,924) $1,855 ($11,680) ($11,500)
continuing operations
Adjustments:                                                    
Acquisition-related
severance & consulting 1,307    207      --      --    --       159
engagement costs
Acquisition-related
depreciation &
amortization of        4,202    4,435     --      --    --       --
property & equipment
and intangible
write-ups
Merger & integration   --       --       --      --    51       320
costs
EMEA restructuring     --       --       3       7     --       --
Other                  --       --       --      --    --       --
Non-GAAP income from   $24,730   $24,164   ($1,921) $1,862 ($11,629) ($11,021)
continuing 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
                                                                    
                                                            Six Months Ended
                                                            June 30, June 30,
                                                             2013     2012
GAAP income from continuing operations                       $15,494  $23,395
Adjustments:                                                         
Acquisition-related severance & consulting engagement costs  1,673   --
Acquisition-related depreciation & amortization of property  8,638   6,053
& equipment and intangible write-ups
Merger & integration costs                                   371     756
EMEA restructuring                                           11      1,075
Other                                                        --      --
Non-GAAP income from continuing operations                   $26,187  $31,279
                                                                    
                                                                    
                                                            Six Months Ended
                                                            June 30, June 30,
                                                             2013     2012
GAAP income from continuing operations, net of taxes, per    $0.28    $0.43
diluted share
Adjustments:                                                         
Acquisition-related severance & consulting engagement costs  0.03     --
Acquisition-related depreciation & amortization of property  0.14     0.10
& equipment and intangible write-ups
Merger & integration costs                                   --      0.01
EMEA restructuring                                           --      0.02
Other                                                        --      --
Non-GAAP income from continuing operations, net of taxes,    $0.45    $0.56
per diluted share



Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information By Segment
(in thousands)
(Unaudited)
Exhibit 9
                                                               
                         Americas            EMEA        Other ^(1)
                         Six Months Ended    Six Months   Six Months Ended
                                              Ended
                          June 30,  June 30,  June  June   June 30,  June 30,
                         2013      2012      30,   30,    2013      2012
                                              2013  2012
GAAP income from          $38,743 $47,734 ($69) ($498) ($23,180) ($23,841)
continuing operations
Adjustments:                                                    
Acquisition-related
severance & consulting    1,514    --       --   --    159      --
engagement costs
Acquisition-related
depreciation &
amortization of property  8,638     6,053     --   --    --       --
& equipment and
intangible write-ups
Merger & integration      --       656       --   --    371      100
costs
EMEA restructuring        --       --       11   1,075 --       --
Other                     --       --       --   --    --       --
Non-GAAP income from      $48,895   $54,443   ($58) $577   ($22,650) ($23,741)
continuing operations
                                                               
(1) Other includes
corporate and other                                             
costs.



Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(Unaudited)
Exhibit 10
                                                             
                                                              Business Outlook
                                                             Third Quarter
                                                              2013
                                                             
GAAP income from continuing operations, net of taxes, per     $0.19 - $0.22
diluted share
Adjustments:                                                  
Acquisition-related severance & consulting engagement costs   
Acquisition-related depreciation & amortization of property & 0.07
equipment and intangible write-ups
Merger & integration costs                                    
EMEA restructuring                                            
Other                                                         
Non-GAAP income from continuing operations, net of taxes, per $0.26 - $0.29
diluted share
                                                             
                                                              Business Outlook
                                                             Full Year
                                                              2013
                                                             
GAAP income from continuing operations, net of taxes, per     $0.89 - $0.98
diluted share
Adjustments:                                                  
Acquisition-related severance & consulting engagement costs   0.03
Acquisition-related depreciation & amortization of property & 0.27
equipment and intangible write-ups
Merger & integration costs                                    --
EMEA restructuring                                            --
Other                                                         --
Non-GAAP income from continuing operations, net of taxes, per $1.19 - $1.28
diluted share

CONTACT: Subhaash Kumar
         Sykes Enterprises, Incorporated
         (813) 233-7143
 
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