Sykes Enterprises, Incorporated Reports Third-Quarter 2013 Financial Results

Sykes Enterprises, Incorporated Reports Third-Quarter 2013 Financial Results

  --Revenue and Diluted Earnings Per Share Exceed Business Outlook Range on
                                Higher Demand

        --Capacity Utilization Rate Increases Alongside Seat Additions

       --Facility Transfers/Rationalization and Program Ramps Continue

  --Raising Full-Year 2013 Revenue Outlook Due to Higher Anticipated Fourth
                                Quarter Demand

TAMPA, Fla., Nov. 4, 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 third quarter ended September 30, 2013.

Third Quarter 2013 Financial Highlights

  *Third quarter 2013 revenues from continuing operations of $322.1 million
    increased $41.6 million, or 14.8%, from $280.5 million in the comparable
    quarter last year, driven largely by the expansion of new and existing
    client programs across the communications, financial services, technology
    and transportation verticals all of which more than offset demand softness
    in the healthcare vertical; on a constant currency basis and excluding
    Alpine Access' revenue contribution from both comparable periods (third
    quarter 2013 versus third quarter 2012), third quarter 2013 revenues from
    continuing operations increased 10.6% comparably
    
  *Third quarter 2013 operating margin from continuing operations was 5.8%
    versus 3.1% 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), third quarter 2013 operating margin from continuing
    operations increased to 7.1% versus 6.0% in the same period last year,
    primarily driven by growth in new and existing client programs and higher
    capacity utilization, coupled with operating efficiencies from facility
    rationalization, facility transfers and acquisition integration, all of
    which were partially offset by unfavorable foreign currency movements
    resulting from appreciating functional currencies versus the U.S. dollar
    
  *Third quarter 2013 diluted earnings per share from continuing operations
    were $0.33 versus $0.19 in the comparable quarter last year, with the
    increase due principally to the above-mentioned factors
    
  *On a non-GAAP basis, third quarter 2013 diluted earnings per share from
    continuing operations increased 25.4% to $0.39 from $0.31 in the same
    period last year (see Exhibit 6 for reconciliation) with the comparable
    increase driven largely by the previously-mentioned factors. Third quarter
    2013 diluted earnings per share from continuing operations were also
    higher relative to the Company's August 2013 business outlook range of
    $0.26 to $0.29. Relative to the August 2013 business outlook range, the
    diluted earnings per share increase was driven largely by the
    previously-mentioned factors, coupled with lower effective tax rate and
    interest and other expenses
    
  *Consolidated capacity utilization rate increased to 75% in the third
    quarter of 2013 from 73% in the comparable period last year, due to growth
    in new and existing client programs across both the EMEA and Americas
    regions

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 11.9% to $265.9 million, or 82.5% of
total revenues, for the third quarter of 2013 compared to $237.5 million, or
84.7% of total revenues, in the same prior year period. This comparable growth
was 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. (The Alpine Access acquisition closed August 20, 2012 and,
therefore, the prior-year's third quarter included a partial quarter's worth
($10.1 million) of revenues versus a full quarter's worth ($27.0 million) in
the third quarter of 2013. Alpine's third quarter 2013 revenues exclude $5.8
million of revenue contribution from SYKES' legacy home agent program in the
U.S, which was merged into the Alpine Access home agent platform starting in
2013.) On a constant currency basis and excluding Alpine Access' revenue
contribution from both comparable periods, third quarter 2013 Americas
revenues from continuing operations increased 7.6% comparably due to the
program expansions noted above.

Sequentially, revenues from continuing operations generated from the Americas
region were up 4.2% to $265.9 million from $255.2 million, or 83.7% of total
revenues, in the second quarter of 2013. On a constant currency basis, third
quarter 2013 Americas revenues increased 5.3% over the second quarter,
principally due to the above-mentioned factors.

The Americas income from continuing operations for the third quarter of 2013
increased 24.6% to $27.0 million, with an operating margin of 10.2% versus
9.1% in the comparable quarter last year. On a non-GAAP basis, the Americas
operating margin from continuing operations increased to 11.7% from 11.0% in
the comparable quarter last year, driven by growth in new and existing client
programs and higher capacity utilization, coupled with operating efficiencies
from facility rationalization, facility transfers and acquisition integration,
all of which were partially offset by 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 third
quarter of 2013 increased 40.4% to $27.0 million, with an operating margin of
10.2% versus 7.5% in the second quarter of 2013. On a non-GAAP basis, the
Americas operating margin from continuing operations increased to 11.7% from
9.7%. The increase was due to the above-mentioned factors (see Exhibit 7 for
reconciliation).

EMEA Region

Revenues from continuing operations from the Company's Europe, Middle East and
Africa (EMEA) region increased 30.9% to $56.3 million, representing 17.5% of
total revenues for the third quarter of 2013, compared to $43.0 million, or
15.3% of total revenues, in the same prior year period. On a constant currency
basis, EMEA revenues from continuing operations increased 26.8%, driven
largely by the expansion of new and existing client programs across the
communications, technology and transportation verticals.

Sequentially, revenues from continuing operations from the Company's EMEA
region increased 13.5% to $56.3 million, or 17.5% of SYKES' total revenues,
versus $49.6 million, or 16.3% of SYKES' total revenues, in the second quarter
of 2013.On a constant currency basis, EMEA revenues from continuing
operations increased 12.6% sequentially, driven largely by the above-mentioned
factors, coupled with a greater number of working days relative to the second
quarter.

The EMEA region's income from continuing operations for the third quarter of
2013 was $3.4 million, or 6.1% of EMEA revenues, versus $2.4 million, or 5.5%
of revenues, in the comparable quarter last year.On a non-GAAP basis, the
operating margin from continuing operations was 6.0% versus 5.7% in the same
period last year, with the margin increase driven primarily by growth in new
and existing client programs (see Exhibit 7 for reconciliation).

Sequentially, the EMEA region's income from continuing operations for the
third quarter of 2013 was $3.4 million, or 6.1% of EMEA revenues, versus an
operating loss of $1.9 million, or a negative 3.9% of revenues, in the second
quarter of 2013. On a non-GAAP basis, the EMEA operating margin from
continuing operations was 6.0% versus a negative 3.9% due to ramp-related
training costs in the second quarter, conversion of those ramp-ups into
revenues and greater number of work days in the third quarter (see Exhibit 7
for reconciliation).

Corporate G&A Expenses

Corporate G&A expenses decreased to $11.6 million, or 3.6% of revenues, in the
third quarter of 2013, compared to $15.3 million, or 5.5% of revenues, in the
comparable quarter last year, which included transaction costs related to the
Alpine Access acquisition and the associated management transition. On a
non-GAAP basis, corporate G&A expenses decreased to $11.6 million from $11.9
million, or 3.6% of revenues from 4.2% of revenues in the third quarter of
2012, with the percentage of revenue decline on a comparable basis driven
largely by expense leverage due to higher comparable revenues (see Exhibit 7
for reconciliation).

Sequentially, corporate G&A expenses decreased slightly to $11.6 million, or
3.6% of revenues, from $11.7 million, or 3.8% of revenues relative to the
second quarter of 2013. On a non-GAAP basis, corporate G&A expenses were
unchanged sequentially at $11.6 million, but decreased slightly as a
percentage of revenues to 3.6% in the third quarter of 2013 from 3.8% of
revenues in the second quarter of 2013 driven largely by expense leverage due
to higher sequential revenues (see Exhibit 7 for reconciliation).

Interest & Other Expense and Taxes

Interest and other expense for the third quarter of 2013 totaled $0.1 million
compared to interest and other expense of $0.8 million for the same period in
the prior year. Net interest expense was higher in the third quarter of 2013
compared to the same period last year due to the timing (full quarter's worth
vs. partial quarter's worth last year) of the amount outstanding on the credit
facility related to the close of the Alpine Access acquisition. However, third
quarter 2013 net interest expense was partially offset by net foreign currency
transaction gains while the prior year period recorded losses, thus creating
the interest and other expense differential on a comparable basis.

The Company recorded an effective tax rate of 24.4% for the third quarter of
2013 versus an effective tax benefit of 3.9% in the same period last year and
versus the estimated 36% provided in the Company's August 2013 business
outlook. The effective tax rate differential on a comparable basis was
primarily due to transaction costs in the year-ago period related to the
Alpine Access acquisition, which lowered pre-tax income in a higher tax-rate
jurisdiction. Relative to the August 2013 business outlook, the lower
effective tax rate was driven by a discrete adjustment related to a valuation
allowance release in the EMEA region and a shift in the geographic mix of
earnings.

On a non-GAAP basis, the third quarter 2013 effective tax rate was 26.2%
compared to 14.6% in the same period last year and below the estimated 36%
provided in the Company's August 2013 business outlook (see Exhibit 11 for
reconciliation). The increase in the effective tax rate on a comparable basis
was primarily driven by a shift in the geographic mix of earnings. The
decrease in the effective tax rate relative to the August 2013 business
outlook was primarily due to the discrete adjustment and a shift in the
geographic mix of earnings.

Liquidity and Capital Resources

The Company's balance sheet at September 30, 2013 remained strong with cash
and cash equivalents of $196.7 million, of which $187.3 million, or 95.2% 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 paid down approximately $8.0 million under its
revolving senior credit facility, leaving it with $105.0 million of borrowings
outstanding down from $113.0 million at June 30, 2013. The amount available
under the Company's credit facility was $140.0 million at September 30, 2013.

Business Outlook

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

  *The Company is increasing its revenue range for the full year given the
    better-than-expected demand in the third quarter and higher anticipated
    demand in the fourth quarter. These underlying demand trends span both the
    Americas and EMEA regions, driven largely by the communications, financial
    services and technology verticals. To meet the higher demand in the fourth
    quarter, the Company anticipates incremental investments in ramp costs in
    the fourth quarter, on top of the carryover of ramp costs from the third
    quarter, which are expected to impact diluted earnings per share for the
    fourth quarter and full year 2013. The anticipated 100 to 150 basis points
    in incremental ramp costs in the fourth quarter are related to agent
    training and on-boarding, along with expenses related to facilities
    expansion;
    
  *The Company's revenues and earnings per share assumptions for the fourth
    quarter and full year 2013 are based on foreign exchange rates as of
    October 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 fourth quarter and full-year;
    
  *The Company now expects to add approximately 7,000 seats on a gross basis
    in 2013, higher than the 6,000 seats previously expected. During the third
    quarter, the Company added approximately 2,600 seats on a gross basis
    while net seats increased by approximately 800 sequentially. For the first
    nine months of 2013, the Company added approximately 5,300 seats on a
    gross basis with the net seat count up by approximately 1,800. Total seat
    count on a net basis for the full year is now expected to increase by
    approximately 2,000 seats (instead of the 1,000 seats previously expected)
    due to the anticipated seat additions related to facility transfers and
    expansions;
    
  *The Company anticipates interest and other expense of approximately $0.9
    million for the fourth quarter and $1.8 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 fourth quarter and full year 2013,
    respectively, related to the outstanding debt associated with the
    acquisition of Alpine Access; and
    
  *The Company's full-year 2013 effective tax rate is expected to be lower
    than the rate provided in the August 2013 business outlook due to the
    discrete adjustment related to a valuation allowance release in the EMEA
    region and the shift in the geographic mix of earnings.

Considering the above factors, the Company anticipates the following financial
results for the three months ending December 31, 2013:

  *Revenues in the range of $330.0 million to $335.0 million
  *Effective tax rate of approximately 24%; **on a non-GAAP basis, an
    effective tax rate of approximately 25%
  *Fully diluted share count of approximately 42.8 million
  *Diluted earnings per share of approximately $0.32 to $0.36
  ***Non-GAAP diluted earnings per share in the range of $0.39 to $0.43
  *Capital expenditures in the range of $18.0 million to $20.0 million 

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

  *Revenues in the range of $1,258.0 million to $1,263.0 million
  *Effective tax rate of approximately 22%; **on a non-GAAP basis, an
    effective tax rate of approximately 24%
  *Fully diluted share count of approximately 42.9 million
  *Diluted earnings per share of approximately $0.93 to $0.97
  ***Non-GAAP diluted earnings per share in the range of $1.23 to $1.27
  *Capital expenditures in the range of $64.0 million to $66.0 million 

** See exhibits 10 & 11 for fourth quarter and full-year 2013 non-GAAP diluted
earnings per share and tax rate reconciliations.

Conference Call

The Company will conduct a conference call regarding the content of this
release tomorrow, November 5, 2013, at 10:00 a.m. Eastern Standard 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 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
                                       September 30, September 30, June 30,
                                       2013          2012          2013
                                                                 
Revenues                                $322,143    $280,526    $304,735
Direct salaries and related costs       (215,001)     (183,628)     (210,141)
General and administrative              (73,987)      (75,747)      (75,247)
Depreciation, net                       (10,677)      (9,583)       (10,017)
Amortization of intangibles             (3,699)       (2,774)       (3,713)
Impairment of long-lived assets        --           (122)        --
Income from continuing operations       18,779        8,672         5,617
Total other income (expense), net       (58)          (839)         (709)
Income from continuing operations       18,721        7,833         4,908
before income taxes
Income taxes                            (4,575)       309           688
Income from continuing operations, net  14,146        8,142         5,596
of taxes
(Loss) from discontinued operations,    --           --           --
net of taxes
(Loss) on sale of discontinued          --           --           --
operations, net of taxes
Net income                              $14,146     $8,142      $5,596
                                                                 
                                                                 
Net income (loss) per share:                                      
Basic:                                                            
Continuing operations                  $0.33       $0.19       $0.13
Discontinued operations                --           --           --
Net income (loss) per share            $0.33       $0.19       $0.13
                                                                 
Diluted:                                                          
Continuing operations                  $0.33       $0.19       $0.13
Discontinued operations                --           --           --
Net income (loss) per share            $0.33       $0.19       $0.13
                                                                 
Weighted average shares outstanding:                              
Basic                                  42,785       43,014       42,936
Diluted                                42,836       43,031       42,954



Sykes Enterprises, Incorporated
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Exhibit 2
                                                               
                                                               
                                                               
                                                  Nine Months Ended
                                                  September 30, September 30,
                                                  2013          2012
                                                               
Revenues                                           $928,122    $823,426
Direct salaries and related costs                  (628,848)     (536,758)
General and administrative                         (222,967)     (217,653)
Depreciation, net                                  (30,863)      (30,033)
Amortization of intangibles                        (11,171)      (6,644)
Impairment of long-lived assets                   --           (271)
Income from continuing operations                  34,273        32,067
Total other income (expense), net                  (926)         (1,838)
Income from continuing operations before income    33,347        30,229
taxes
Income taxes                                       (7,087)       (3,569)
Income from continuing operations, net of taxes   26,260       26,660
(Loss) from discontinued operations, net of taxes  --           (820)
Gain (loss) on sale of discontinued operations,    --           (10,707)
net of taxes
Net income (loss)                                  $26,260     $15,133
                                                               
                                                               
Net income (loss) per share:                                    
Basic:                                                          
Continuing operations                             $0.61       $0.62
Discontinued operations                           --           (0.27)
Net income (loss) per share                       $0.61       $0.35
                                                               
Diluted:                                                        
Continuing operations                             $0.61       $0.62
Discontinued operations                           --           (0.27)
Net income (loss) per share                       $0.61       $0.35
                                                               
Weighted average shares outstanding:                            
Basic                                             42,918       43,130
Diluted                                           42,948       43,179




Sykes Enterprises, Incorporated
Segment Results
(in thousands, except per share data)
(Unaudited)
Exhibit 3
                                                                 
                                                                 
                                                                 
                                       Three Months Ended
                                       September 30, September 30, June 30,
                                       2013          2012          2013
                                                                 
Revenues:                                                         
Americas                               $265,878    $237,541    $255,163
EMEA                                   56,265        42,985        49,572
Total                                  $322,143    $280,526    $304,735
                                                                 
Operating Income:                                                 
Americas                               $26,987     $21,654     $19,221
EMEA                                   3,423         2,359         (1,924)
Corporate G&A expenses                 (11,631)      (15,341)      (11,680)
Income from continuing operations      18,779        8,672         5,617
                                                                 
Total other income (expense), net      (58)          (839)         (709)
Income taxes                           (4,575)       309           688
                                                                 
Income from continuing operations, net $14,146     $8,142      $5,596
of taxes
                                                                 
                                                                 
                                                                 
                                       Nine Months Ended           
                                       September 30, September 30, 
                                       2013          2012          
                                                                 
Revenues:                                                         
Americas                               $776,255    $688,841    
EMEA                                   151,867       134,585       
Total                                  $928,122    $823,426    
                                                                 
Operating Income:                                                 
Americas                               $65,730     $69,388     
EMEA                                   3,354         1,861         
Corporate G&A expenses                 (34,811)      (39,182)      
Income from continuing operations      34,273        32,067        
                                                                 
Total other income (expense), net      (926)         (1,838)       
Income taxes                           (7,087)       (3,569)       
                                                                 
Income from continuing operations, net $26,260     $26,660     
of taxes



Sykes Enterprises, Incorporated
Condensed Consolidated Balance Sheets
(in thousands, except seat data)
(Unaudited)
Exhibit 4
                                                                    
                                                                    
                                                                    
                                   September 30,      December 31,    
                                   2013               2012            
                                                                    
Assets:                                                              
Current assets                      $509,455         $467,342      
Property and equipment, net         114,868            101,295         
Goodwill & intangibles, net         281,703            296,268         
Other noncurrent assets             43,865             43,784          
Total assets                       $949,891         $908,689      
                                                                    
Liabilities & Shareholders' Equity:                                  
Current liabilities                 $174,549         $164,583      
Noncurrent liabilities              150,121            137,842         
Shareholders' equity                625,221            606,264         
Total liabilities and              $949,891         $908,689      
shareholders' equity
                                                                    
                                                                    
                                                                    
Sykes Enterprises, Incorporated
Supplementary Data
                                                                    
                                                                    
                                                                    
                                   Q3 2013            Q3 2012         
                                                                    
Geographic Mix (% of Total                                           
Revenues):
Americas ^(1)                      83%                85%             
Europe, Middle East & Africa       17%                15%             
(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 2013            Q3 2012         
                                                                    
Vertical Industry Mix (% of Total Revenues):                          
Communications                     36%                32%             
Financial Services                 28%                30%             
Technology / Consumer              15%                16%             
Transportation & Leisure           8%                 9%              
Healthcare                         5%                 8%              
Other                              8%                 5%              
Total                              100%               100%            
                                                                    
                                                                    
                                   Seat Capacity ^(3)
                                   Q3 2013            Q3 2012         Q2 2013
                                                                    
Americas ^(2)                      35,200             34,900          34,500
EMEA                               5,900              5,300           5,800
Total                              41,100             40,200          40,300
                                                                    
Offshore                           23,200             22,400          22,000
                                                                    
                                                                    
                                   Capacity Utilization
                                   Q3 2013            Q3 2012         Q2 2013
                                                                    
Americas ^(2)                      73%                72%             74%
EMEA                               85%                78%             81%
Total                              75%                73%             75%
                                                                    
Offshore                           73%                77%             77%
                                                                    
^(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 2,900 agent FTEs working virtually from
home both in the U.S. and Canada, including 2,600 from Alpine Access.


Sykes Enterprises, Incorporated
Cash Flow from Operations
(in thousands)
(Unaudited)
Exhibit 5
                                                               
                                                               
                                                               
                                                  Three Months Ended
                                                  September 30, September 30,
                                                  2013          2012
                                                               
Cash Flow From Operating Activities:                            
Net income (loss)                                 $14,146     $8,142
Depreciation                                      10,861        9,835
Amortization of intangibles                       3,699         2,774
Amortization of deferred grants                   (286)         (252)
Changes in assets and liabilities and other       27,755        9,950
Net cash provided by (used for) operating         $56,175     $30,449
activities
                                                               
Capital expenditures                               $19,586     $12,549
Cash interest paid                                 $563        $1,198
Cash taxes paid                                    $3,823      $3,369
                                                               
                                                               
                                                               
                                                               
                                                  Nine Months Ended
                                                  September 30, September 30,
                                                  2013          2012
                                                               
Cash Flow From Operating Activities:                            
Net income (loss)                                 $26,260     $15,133
Depreciation                                      31,620        30,827
Amortization of intangibles                       11,171        6,644
Amortization of deferred grants                   (859)         (794)
Changes in assets and liabilities and other       (17,670)      3,524
Net cash provided by (used for) operating         $50,522     $55,334
activities
                                                               
Capital expenditures                               $45,647     $26,355
Cash interest paid                                 $1,593      $1,726
Cash taxes paid                                    $12,304     $25,673



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,
                                         2013          2012          2013
                                                                   
GAAP income from continuing operations    $18,779       $8,672        $5,617
Adjustments:                                                        
Acquisition-related severance &           (3)          697          1,307
consulting engagement costs
Acquisition-related depreciation &
amortization of property & equipment and  4,194        3,766        4,202
intangible write-ups
Merger & integration costs                73           3,045        51
EMEA restructuring                       (67)         104          3
Other                                     --           418          --
Non-GAAP income from continuing           $22,976       $16,702       $11,180
operations
                                                                   
                                                                   
                                         Three Months Ended
                                         September 30, September 30, June 30,
                                         2013          2012          2013
                                                                   
GAAP income from continuing operations,   $0.33         $0.19         $0.13
net of taxes, per diluted share
Adjustments:                                                        
Acquisition-related severance &           --           0.01          0.02
consulting engagement costs
Acquisition-related depreciation &
amortization of property & equipment and  0.06         0.06          0.07
intangible write-ups
Merger & integration costs                --           0.05          --
EMEA restructuring                       --           --           --
Other                                     --           --           --
Non-GAAP income from continuing
operations, net of taxes, per diluted     $0.39         $0.31         $0.22
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,
                   2013      2012      2013      2012      2013      2012
                                                                
GAAP income from
continuing          $26,987 $21,654 $3,423    $2,359    ($11,631) ($15,341)
operations
Adjustments:                                                     
Acquisition-related
severance &         (3)      320      --       --       --       377
consulting
engagement costs
Acquisition-related
depreciation &
amortization of
property &          4,194     3,766     --       --       --       --
equipment and
intangible
write-ups
Merger &            --       --       --       --       73       3,045
integration costs
EMEA restructuring --       --       (67)     104      --       --
Other               --       418      --       --       --       --
Non-GAAP income
from continuing     $31,178   $26,158   $3,356    $2,463    ($11,558) ($11,919)
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,
                   2013      2013      2013      2013      2013      2013
                                                                
GAAP income from
continuing          $26,987   $19,221 $3,423    ($1,924)  ($11,631) ($11,680)
operations
Adjustments:                                                     
Acquisition-related
severance &         (3)      1,307    --       --       --       --
consulting
engagement costs
Acquisition-related
depreciation &
amortization of
property &          4,194    4,202     --       --       --       --
equipment and
intangible
write-ups
Merger &            --       --       --       --       73       51
integration costs
EMEA restructuring --       --       (67)     3        --       --
Other               --       --       --       --       --       --
Non-GAAP income
from continuing     $31,178   $24,730   $3,356    ($1,921)  ($11,558) ($11,629)
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,
                                                  2013          2012
GAAP income from continuing operations             $34,273       $32,067
Adjustments:                                                    
Acquisition-related severance & consulting         1,670        697
engagement costs
Acquisition-related depreciation & amortization of 12,832       9,819
property & equipment and intangible write-ups
Merger & integration costs                         444          3,151
EMEA restructuring                                (56)         1,279
Other                                              --           968
Non-GAAP income from continuing operations         $49,163       $47,981
                                                               
                                                               
                                                  Nine Months Ended
                                                  September 30, September 30,
                                                  2013          2012
GAAP income from continuing operations, net of     $0.61         $0.62
taxes, per diluted share
Adjustments:                                                    
Acquisition-related severance & consulting         0.03         0.01
engagement costs
Acquisition-related depreciation & amortization of 0.20         0.16
property & equipment and intangible write-ups
Merger & integration costs                         --           0.06
EMEA restructuring                                --           0.03
Other                                              --           0.01
Non-GAAP income from continuing operations, net of $0.84         $0.89
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,
                   2013      2012      2013      2012      2013      2012
GAAP income from
continuing          $65,730 $69,388 $3,354    $1,861    ($34,811) ($39,182)
operations
Adjustments:                                                     
Acquisition-related
severance &         1,511    320      --       --       159      377
consulting
engagement costs
Acquisition-related
depreciation &
amortization of
property &          12,832    9,819     --       --       --       --
equipment and
intangible
write-ups
Merger &            --       106       --       --       444      3,045
integration costs
EMEA restructuring --       --       (56)     1,179    --       100
Other               --       968      --       --       --       --
Non-GAAP income
from continuing     $80,073   $80,601   $3,298    $3,040    ($34,208) ($35,660)
operations
                                                                
^(1) Other includes corporate and other costs.



Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(Unaudited)
Exhibit 10
                                                             
                                                             Business Outlook
                                                             Fourth Quarter
                                                             2013
                                                             
GAAP income from continuing operations, net of taxes, per     $0.32 -- $0.36
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 $0.39 -- $0.43
diluted share
                                                             
                                                             Business Outlook
                                                             Full Year
                                                             2013
                                                             
GAAP income from continuing operations, net of taxes, per     $0.93 -- $0.97
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 $1.23 -- $1.27
diluted share



Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(Unaudited)
Exhibit 11
                                                           
                                                           
                                                           
                                         Three Months Ended Three Months
                                                             Ended
                                         September 30, 2013 September 30,
                                                             2012
                                         Tax Rate           Tax Rate
GAAP                                      24%                -4%
                                                           
Acquisition-related severance &           --                 2%
consulting engagement costs
Acquisition-related depreciation &
amortization of property & equipment and  2%                 9%
intangible write-ups
Merger & integration costs                --                 7%
EMEA restructuring                       --                 --
Other                                     --                 1%
Non-GAAP                                  26%                15%
                                                           
                                                           
                                                           
                                                           
                                         Three Months Ended Twelve Months
                                                             Ended
                                         December 31, 2013  December 31, 2013
                                         Tax Rate           Tax Rate
GAAP                                      24%                22%
                                                           
Acquisition-related severance &           --                 --
consulting engagement costs
Acquisition-related depreciation &
amortization of property & equipment and  1%                 2%
intangible write-ups
Merger & integration costs                --                 --
EMEA restructuring                       --                 --
Other                                     --                 --
Non-GAAP                                  25%                24%

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