Sykes Enterprises, Incorporated Reports Fourth-Quarter and Full-Year 2013 Financial Results

Sykes Enterprises, Incorporated Reports Fourth-Quarter and Full-Year 2013
Financial Results

  --Fourth Quarter 2013 Revenue Tops Business Outlook Range on Better Demand

      --Fourth Quarter 2013 Diluted Earnings Per Share Skewed by Higher
                            Non-Operating Expenses

     --Fourth Quarter 2013 Cash Flow From Operating Activities Increases
                                 Double-Digit

   --2014 Business Outlook Reflects Revenue and Diluted Earnings Per Share
                                  Expansion

TAMPA, Fla., Feb. 18, 2014 (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 fourth-quarter and full-year ended December 31, 2013.

Fourth Quarter 2013 Financial Highlights

  *Fourth quarter 2013 revenues from continuing operations of $335.3 million
    increased $31.1 million, or 10.2%, from $304.3 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, fourth
    quarter 2013 revenues from continuing operations increased 12.0%
    comparably
    
  *Fourth quarter 2013 operating margin from continuing operations was 5.7%
    versus 5.2% 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), fourth quarter 2013 operating margin from continuing
    operations increased to 7.1% versus 7.0% in the same period last year due
    to revenue growth noted above, however, the margin increase was moderated
    by significant costs incurred related to demand-driven client program
    ramps, capacity investments and unfavorable foreign currency movements
    
  *Fourth quarter 2013 diluted earnings per share from continuing operations
    were $0.26 versus $0.31 in the comparable quarter last year and compared
    to the November 2013 business outlook range of $0.32 to $0.36, with the
    decrease on a comparable basis and relative to the business outlook range
    due to the factors noted above as well as a combination of a higher
    effective tax rate and higher realized and unrealized foreign currency
    transaction losses
    
  *On a non-GAAP basis, fourth quarter 2013 diluted earnings per share from
    continuing operations were $0.33 versus $0.39 in the same period last year
    (see Exhibit 6 for reconciliation) with the comparable decrease driven
    largely by the previously-mentioned factors. Fourth quarter 2013 diluted
    earnings per share from continuing operations were also lower relative to
    the Company's November 2013 business outlook range of $0.39 to $0.43,
    which was largely due to the above mentioned factors; however, adjusting
    for the interest and other expenses of $0.9 million as well as a non-GAAP
    effective tax rate of 25% as projected in the Company's November 2013
    business outlook, fourth quarter 2013 diluted earnings per share would
    have been $0.40
    
  *Consolidated capacity utilization rate decreased to 73% in the fourth
    quarter of 2013 from 75% in the comparable period last year, due partly to
    a shift in timing of capacity rationalization to the first quarter of 2014
    coupled with a comparable increase in net seats of 2,900 driven by
    facility upgrades and transfers and growth in new and existing client
    programs across both the EMEA and Americas regions that are in the process
    of ramping up

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 6.3% to $274.6 million, or 81.9% of
total revenues, for the fourth quarter of 2013 compared to $258.3 million, or
84.9% 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. On a constant currency basis, fourth quarter 2013 Americas revenues
from continuing operations increased 9.1% comparably due to the program
expansions noted above.

Sequentially, revenues from continuing operations generated from the Americas
region were up 3.3% to $274.6 million from $265.9 million, or 82.5% of total
revenues, in the third quarter of 2013. On a constant currency basis, fourth
quarter 2013 Americas revenues increased 3.4% over the third quarter, driven
principally by the communications, technology and healthcare verticals.

The Americas income from continuing operations for the fourth quarter of 2013
increased 16.9% to $28.3 million, with an operating margin of 10.3% versus
9.4% in the comparable quarter last year. On a non-GAAP basis, the Americas
operating margin from continuing operations increased to 11.8% from 11.6% in
the comparable quarter last year, driven by growth in new and existing client
programs and some expense leverage, which was moderated by significant costs
incurred related to demand-driven client program ramps and capacity
investments, coupled with unfavorable foreign currency movements from
appreciating functional currencies versus the U.S. dollar (see Exhibit 7 for
reconciliation).

Sequentially, the Americas income from continuing operations for the fourth
quarter of 2013 increased 4.8% to $28.3 million, with an operating margin of
10.3% versus 10.2% in the third quarter of 2013.On a non-GAAP basis, the
Americas operating margin from continuing operations increased to 11.8% from
11.7%. The increase was due largely 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 32.2% to $60.8 million, representing 18.1% of
total revenues for the fourth quarter of 2013, compared to $46.0 million, or
15.1% of total revenues, in the same prior year period. On a constant currency
basis, EMEA revenues from continuing operations increased 28.4%, driven
largely by the expansion of new and existing client programs across the
communications, technology, financial services and transportation verticals.

Sequentially, revenues from continuing operations from the Company's EMEA
region increased 8.0% to $60.8 million, or 18.1% of SYKES' total revenues,
versus $56.3 million, or 17.5% of SYKES' total revenues, in the third quarter
of 2013.On a constant currency basis, EMEA revenues from continuing
operations increased 5.7% sequentially, driven largely by the expansion of new
and existing client programs across the communications, technology and
financial services verticals.

The EMEA region's income from continuing operations for the fourth quarter of
2013 was $2.7 million, or 4.4% of EMEA revenues, versus $3.6 million, or 7.9%
of revenues, in the comparable quarter last year.On a non-GAAP basis, the
operating margin from continuing operations decreased to 5.0% from 6.2% in the
same period last year due to costs associated with some new client program
ramps, in particular, where ramp duration was slightly longer than expected.
In addition, fourth quarter 2013 operating margin was also impacted by
facilities expansion (see Exhibit 7 for reconciliation).

Sequentially, the EMEA region's income from continuing operations for the
fourth quarter of 2013 was $2.7 million, or 4.4% of EMEA revenues, versus $3.4
million, or 6.1% of revenues, in the third quarter of 2013. On a non-GAAP
basis, the EMEA operating margin from continuing operations decreased to 5.0%
from 6.0% due largely to the above-mentioned factors (see Exhibit 7 for
reconciliation).

Corporate G&A Expenses

Corporate G&A expenses decreased to $11.7 million, or 3.5% of revenues, in the
fourth quarter of 2013, compared to $12.1 million, or 4.0% 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 increased slightly to $11.7 million
from $11.4 million, however, decreased slightly as percentage of revenues to
3.5% from 3.7% of revenues in the fourth quarter of 2012, with the percentage
decline driven largely by expense leverage due to higher comparable revenues
(see Exhibit 7 for reconciliation).

Sequentially, corporate G&A expenses increased slightly to $11.7 million, or
3.5% of revenues, from $11.6 million, or 3.6% of revenues relative to the
third quarter of 2013. On a non-GAAP basis, corporate G&A expenses increased
slightly to $11.7 million from $11.6 million, however, decreased slightly as a
percentage of revenues to 3.5% in the fourth quarter of 2013 from 3.6% of
revenues in the third 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 fourth quarter of 2013 totaled $1.3 million
compared to interest and other expense of $0.8 million for the same period
last year. Interest and other expense was higher in the fourth quarter of 2013
compared to the same period last year due principally to an increase in
realized and unrealized foreign currency transaction losses. These losses
resulted primarily from U.S. dollar denominated assets and liabilities held by
the Company's foreign subsidiaries.

The Company recorded an effective tax rate of 38.8% for the fourth quarter of
2013 versus 11.0% in the same period last year and versus the estimated 24%
provided in the Company's November 2013 business outlook. The increase in the
effective tax rate on a comparable basis and relative to the November 2013
business outlook was driven by a combination of shift in the geographic mix of
earnings to higher tax rate jurisdictions and taxation of offshore gains on
derivatives related to inter-company loans and foreign exchange.

On a non-GAAP basis, the fourth quarter 2013 effective tax rate was 37.2%
compared to 18.0% in the same period last year and above the estimated 25%
provided in the Company's November 2013 business outlook (see Exhibit 11 for
reconciliation). The increase in the effective tax rate on a comparable basis
and relative to the November 2013 business outlook was primarily due to the
above-mentioned factors.

2013 Financial Highlights

  *2013 revenues of $1,263.5 million from continuing operations increased
    $135.8 million, or 12.0%, from 2012, 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. 2013 included a
    full-year's revenue contribution from the Alpine Access acquisition, which
    closed August 2012 and, as such, contributed only partially to revenues in
    2012; on a constant currency basis and excluding Alpine Access' revenue
    contribution from both comparable periods (2013 and 2012), 2013 revenues
    from continuing operations increased 5.9% comparably
    
  *Alpine Access' constant currency organic revenue grew 19.2% in 2013
    compared to 2012 driven largely by growth from existing clients
    
  *2013 operating margin from continuing operations was unchanged at 4.2%
    comparably; on a non-GAAP basis, 2013 operating margin from continuing
    operations was 5.8% versus 6.1% for 2012, with the decrease due to a
    combination of program ramp costs, investments in facility upgrades and
    transfers, as well as unfavorable foreign currency movements, all of which
    more than offset the savings associated with on-going facility
    rationalization (see Exhibit 8 for reconciliation)
    
  *2013 diluted earnings per share from continuing operations were $0.87
    versus $0.93 in 2012 and below the Company's November 2013 business
    outlook earnings per share range of $0.93 to $0.97. The decrease in the
    Company's 2013 diluted earnings per share from continuing operations on a
    comparable basis was due principally to a higher effective tax rate,
    coupled with program ramp costs, investments in facility upgrades and
    transfers and unfavorable foreign currency movements; while relative to
    the business outlook, the decrease was driven by a combination of a higher
    effective tax rate and higher realized and unrealized foreign currency
    transaction losses
    
  *On a non-GAAP basis (see Exhibit 8 for reconciliation), 2013 diluted
    earnings per share from continuing operations was $1.18 compared to $1.27
    in 2012 and compared to a non-GAAP diluted earnings per share range of
    $1.23 to $1.27 provided in the Company's November 2013 business outlook.
    The decrease in the Company's 2013 non-GAAP diluted earnings per share
    from continuing operations relative to 2012 was due to aforementioned
    factors; the decrease in non-GAAP diluted earnings per share relative to
    the November 2013 business outlook was due to a combination of a higher
    effective tax rate and higher realized and unrealized foreign currency
    transaction losses
    
  *2012 loss per share from discontinued operations, net of taxes, was
    ($0.27) due principally to the loss on the sale of the Company's
    operations in Spain in 2012

Liquidity and Capital Resources

The Company's balance sheet at December 31, 2013 remained strong with cash and
cash equivalents of $212.0 million, of which $195.0 million, or 92.0% 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.
Net cash provided by operating activities increased 14.5% comparably to $35.7
million in the fourth quarter of 2013 from $31.2 million in the same period
last year. During the quarter, the Company paid down approximately $7.0
million under its revolving senior credit facility, leaving it with $98.0
million of borrowings outstanding, down from $105.0 million at September 30,
2013. The amount available under the Company's credit facility was $147.0
million at December 31, 2013.

Business Outlook

The assumptions driving the business outlook for the first quarter and
full-year 2014 are as follows:

  *In the midst of on-going macro-economic cross currents and upcoming U.S.
    mid-term elections, initial indications of demand trends remain
    encouraging. The Company is anticipating growth from both existing and new
    client programs across the communications, financial services, technology
    and travel verticals within the Americas and EMEA regions. Demand for the
    first quarter of 2014 reflects traditional seasonality on sequential
    basis, which is followed by fewer work days in the second quarter relative
    to the first quarter. As in prior years, with the combination of
    seasonality, fewer work days and the timing of ramps related to program
    wins, the Company expects consolidated second-half 2014 revenues to be
    greater than the first-half. Furthermore, based on foreign exchange rates
    as of February 2014, the Company's full-year business outlook reflects the
    anticipation of approximately $10 million in negative impact to revenues
    due to unfavorable foreign currency movements relative to 2013;
    
  *Given the anticipated revenue growth coupled with operating efficiencies,
    the Company expects expansion of operating margins and growth in
    comparable diluted earnings per share. However, due to a combination and
    timing of the impact from the resetting of payroll tax withholdings for
    the new year, statutory wage increases, inclement weather impacting our
    Canadian roadside assistance business, timing of certain program
    expirations and ramp up costs skewed toward the first half of 2014,
    operating margins and diluted earnings per share are expected to be lower
    in the first-half of the year compared to the second half;
    
  *The Company's revenues and earnings per share assumptions for the first
    quarter and full year 2014 are based on foreign exchange rates as of
    February 2014.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 further impact, positive or negative, on
    revenues and both GAAP and non-GAAP earnings per share relative to the
    business outlook for the first quarter and full-year;
    
  *The Company plans to add approximately 1,200 seats on a gross basis in
    2014.Approximately 50% of the new seat count is expected to be added in
    the first half of 2014, with the remainder in the second half. Total seat
    count on a net basis for the full year, however, is expected to decrease
    by approximately 1,200 seats as the Company continues to rationalize
    excess capacity;
    
  *The Company anticipates net interest expense of approximately $0.7 million
    for the first quarter and $2.8 million for the full year 2014, all of
    which is related to the debt associated with the acquisition of Alpine
    Access. These amounts exclude the potential impact of any future foreign
    exchange gains or losses in other expense; and
    
  *The Company anticipates a slightly lower effective tax rate for full-year
    2014 versus 2013 with the effective tax rate differential driven chiefly
    by a discrete adjustment in 2013 related to The American Taxpayer Relief
    Act of 2012, which passed on January 2, 2013 and resulted in the Company
    incurring withholding taxes on its offshore cash movements.

Considering the above factors, the Company anticipates the following financial
results for the three months ending March 31, 2014:

  *Revenues in the range of $320.0 million to $325.0 million
  *Effective tax rate of approximately 10.0%; **on a non-GAAP basis, an
    effective tax rate of approximately 19.5%
  *Fully diluted share count of approximately 42.9 million
  *Diluted earnings per share in the range of $0.25 to $0.28
  ***Non-GAAP diluted earnings per share in the range of $0.31 to $0.34
  *Capital expenditures in the range of $10.0 million to $13.0 million 

For the twelve months ending December 31, 2014, the Company anticipates the
following financial results:

  *Revenues in the range of $1,315.0 million to $1,335.0 million
  *Effective tax rate of approximately 24.8%; **on a non-GAAP basis, an
    effective tax rate of approximately 26.8%
  *Fully diluted share count of approximately 43.1 million
  *Diluted earnings per share in the range of $1.20 to $1.30
  ***Non-GAAP diluted earnings per share in the range of $1.44 to $1.54
  *Capital expenditures in the range of $45.0 million to $50.0 million 

** See exhibits 10 & 11 for first quarter and full-year 2014 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, February 19, 2014, at 10:00 a.m. Eastern Time.The
conference call will be carried live on the Internet.Instructions for
listening to the call over the Internet are available on the Investors page of
SYKES' website at www.sykes.com.A replay will be available at this location
for two weeks.This press release is also posted on the SYKES website at
http://investor.sykes.com/investor-relations/Investor-Resources/Investor-Relations-Home/default.aspx.

Non-GAAP Financial Measures

Non-GAAP income from continuing operations, non-GAAP operating margins,
non-GAAP tax rate, non-GAAP income from continuing operations, net of taxes,
per diluted share and non-GAAP income from continuing operations by segment
are important indicators of performance as these non-GAAP financial measures
assist readers in further understanding the Company's results from operations
and how management evaluates and measures such performance. These non-GAAP
indicators of performance are not measures of financial performance under U.S.
Generally Accepted Accounting Principles ("GAAP") and should not be considered
a substitute for measures determined in accordance with GAAP. Refer to the
exhibits in the release for detailed reconciliations.

About Sykes Enterprises, Incorporated

SYKES is a global leader in providing 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
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Exhibit 1
                                                              
                                      Three Months Ended
                                      December 31, December 31, September 30,
                                       2013         2012         2013
                                                              
Revenues                               $335,338   $304,272   $322,143
Direct salaries and related costs      (226,418)    (201,194)    (215,001)
General and administrative             (74,612)     (72,803)     (73,910)
Depreciation, net                      (11,221)     (10,336)     (10,677)
Amortization of intangibles            (3,692)      (3,835)      (3,699)
Net gain (loss) on disposal of         (141)       (308)       (77)
property and equipment
Impairment of long-lived assets       --          (84)        --
Income from continuing operations      19,254       15,712       18,779
Total other income (expense), net      (1,276)      (784)        (58)
Income from continuing operations      17,978       14,928       18,721
before income taxes
Income taxes                           (6,978)      (1,638)      (4,575)
Income from continuing operations, net 11,000       13,290       14,146
of taxes
(Loss) from discontinued operations,   --          --          --
net of taxes
(Loss) on sale of discontinued         --          --          --
operations, net of taxes
Net income                             $11,000    $13,290    $14,146
                                                              
                                                              
Net income (loss) per share:                                   
Basic:                                                         
Continuing operations                  $0.26      $0.31      $0.33
Discontinued operations                --          --          --
Net income (loss) per share            $0.26      $0.31      $0.33
                                                              
Diluted:                                                       
Continuing operations                  $0.26      $0.31      $0.33
Discontinued operations                --          --          --
Net income (loss) per share            $0.26      $0.31      $0.33
                                                              
Weighted average shares outstanding:                           
Basic                                  42,759      43,057      42,785
Diluted                                42,880      43,081      42,836


Sykes Enterprises, Incorporated
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Exhibit 2
                                                                
                                                    Year Ended
                                                    December 31, December 31,
                                                     2013         2012
                                                                
Revenues                                             $1,263,460 $1,127,698
Direct salaries and related costs                    (855,266)    (737,952)
General and administrative                           (297,519)    (290,373)
Depreciation, net                                    (42,084)     (40,369)
Amortization of intangibles                          (14,863)     (10,479)
Net gain (loss) on disposal of property and          (201)       (391)
equipment
Impairment of long-lived assets                     --          (355)
Income from continuing operations                    53,527       47,779
Total other income (expense), net                    (2,202)      (2,622)
Income from continuing operations before income      51,325       45,157
taxes
Income taxes                                         (14,065)     (5,207)
Income from continuing operations, net of taxes     37,260      39,950
(Loss) from discontinued operations, net of taxes    --          (820)
(Loss) on sale of discontinued operations, net of    --          (10,707)
taxes
Net income                                           $37,260    $28,423
                                                                
                                                                
Net income (loss) per share:                                     
Basic:                                                           
Continuing operations                                $0.87      $0.93
Discontinued operations                              --          (0.27)
Net income (loss) per share                          $0.87      $0.66
                                                                
Diluted:                                                         
Continuing operations                                $0.87      $0.93
Discontinued operations                              --          (0.27)
Net income (loss) per share                          $0.87      $0.66
                                                                
Weighted average shares outstanding:                             
Basic                                                42,877      43,105
Diluted                                              42,925      43,148


Sykes Enterprises, Incorporated
Segment Results
(in thousands, except per share data)
(Unaudited)
Exhibit 3
                                                              
                                      Three Months Ended
                                      December 31, December 31, September 30,
                                       2013         2012         2013
                                                              
Revenues:                                                      
Americas                               $274,558   $258,306   $265,878
EMEA                                   60,780       45,966       56,265
Total                                  $335,338   $304,272   $322,143
                                                              
Operating Income:                                              
Americas                               $28,276    $24,192    $26,987
EMEA                                   2,698        3,627        3,423
Corporate G&A expenses                 (11,720)     (12,107)     (11,631)
Income from continuing operations      19,254       15,712       18,779
                                                              
Total other income (expense), net      (1,276)      (784)        (58)
Income taxes                           (6,978)      (1,638)      (4,575)
                                                              
Income from continuing operations, net $11,000    $13,290    $14,146
of taxes
                                                              
                                                              
                                      Year Ended                
                                      December 31, December 31, 
                                       2013         2012
                                                              
Revenues:                                                      
Americas                               $1,050,813 $947,147   
EMEA                                   212,647      180,551      
Total                                  $1,263,460 $1,127,698 
                                                              
Operating Income:                                              
Americas                               $94,006    $93,580    
EMEA                                   6,052        5,488        
Corporate G&A expenses                 (46,531)     (51,289)     
Income from continuing operations      53,527       47,779       
                                                              
Total other income (expense), net      (2,202)      (2,622)      
Income taxes                           (14,065)     (5,207)      
                                                              
Income from continuing operations, net $37,260    $39,950    
of taxes


Sykes Enterprises, Incorporated
Consolidated Balance Sheets
(in thousands, except seat data)
(Unaudited)
Exhibit 4
                                                                
                               December 31,       December 31,    
                                2013               2012
                                                                
Assets:                                                          
Current assets                  $513,283         $467,342      
Property and equipment, net     117,549            101,295         
Goodwill & intangibles, net     275,857            296,268         
Other noncurrent assets         43,572             43,784          
Total assets                    $950,261         $908,689      
                                                                
Liabilities & Shareholders'                                      
Equity:
Current liabilities             $173,380         $164,583      
Noncurrent liabilities          141,177            137,842         
Shareholders' equity            635,704            606,264         
Total liabilities and           $950,261         $908,689      
shareholders' equity
                                                                
Sykes Enterprises, Incorporated                                   
Supplementary Data                                                 
                                                                
                                                                
                               Q4 2013            Q4 2012         
                                                                
Geographic Mix (% of Total                                       
Revenues):
Americas ^(1)                   82%                85%             
Europe, Middle East & Africa    18%                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.
                                                                
                               Q4 2013            Q4 2012         
                                                                
Vertical Industry Mix (% of Total Revenues):                      
Communications                  37%                32%             
Financial Services              26%                28%             
Technology / Consumer           16%                17%             
Transportation & Leisure        7%                 8%              
Healthcare                      5%                 7%              
Other                           9%                 8%              
Total                           100%               100%            
                                                                
                                                                
                               Seat Capacity ^(3)
                               Q4 2013            Q4 2012         Q3 2013
                                                                
Americas ^(2)                   36,100             34,000          35,200
EMEA                            6,100              5,300           5,900
Total                           42,200             39,300          41,100
                                                                
Offshore                        23,400             22,000          23,200
                                                                
                                                                
                               Capacity Utilization
                               Q4 2013            Q4 2012         Q3 2013
                                                                
Americas ^(2)                   70%                74%             73%
EMEA                            87%                82%             85%
Total                           73%                75%             75%
                                                                
Offshore                        70%                77%             73%
                                                                
^(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 fourth quarter
2013, the Company had approximately 4,000 agent FTEs working virtually from
home both in the U.S. and Canada.

                                                              
Sykes Enterprises, Incorporated                                             
Cash Flow from Operations                                                    
(in thousands)                                                               
(Unaudited)                                                                  
Exhibit 5                                                                    
                                                             
                                    Three Months Ended
                                    December 31, December 31, September 30,
                                     2013         2012         2013
                                                            
Cash Flow From Operating Activities:                         
Net income (loss)                    $11,000    $13,290    $14,146
Depreciation                         11,474       10,743       10,861
Amortization of intangibles          3,692        3,835        3,699
Amortization of deferred grants      (289)        (407)        (286)
Changes in assets and liabilities    9,819        3,719        27,755
and other
Net cash provided by (used for)     $35,696    $31,180    $56,175
operating activities
                                                            
Capital expenditures                 $13,546    $12,292    $19,586
Cash interest paid                   $556       $513       $563
Cash taxes paid                      $4,585     $3,149     $3,823
                                                            
                                                            
                                    Year Ended                
                                    December 31, December 31, 
                                     2013         2012
                                                            
Cash Flow From Operating Activities:                         
Net income (loss)                    $37,260    $28,423    
Depreciation                         43,094       41,570       
Amortization of intangibles          14,863       10,479       
Amortization of deferred grants      (1,148)      (1,201)      
Changes in assets and liabilities    (7,851)      7,243        
and other
Net cash provided by (used for)      $86,218    $86,514    
operating activities
                                                            
Capital expenditures                 $59,193    $38,647    
Cash interest paid                   $2,149     $2,239     
Cash taxes paid                      $16,889    $28,822    


Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(in thousands, except per share data)
(Unaudited)
Exhibit 6
                                                              
                                      Three Months Ended
                                      December 31, December 31, September 30,
                                       2013         2012         2013
                                                              
GAAP income from continuing operations $19,254      $15,712      $18,779
Adjustments:                                                   
Acquisition-related severance &        --          271         (3)
consulting engagement costs
Acquisition-related depreciation &
amortization of property & equipment   4,179       5,004       4,194
and intangible write-ups
Merger & integration costs             --          697         73
EMEA restructuring                    320         (757)       (67)
Other                                  --          436         --
Non-GAAP income from continuing        $23,753      $21,363      $22,976
operations
                                                              
                                                              
                                      Three Months Ended
                                      December 31, December 31, September 30,
                                       2013         2012         2013
                                                              
GAAP income from continuing
operations, net of taxes, per diluted  $0.26        $0.31        $0.33
share
Adjustments:                                                   
Acquisition-related severance &        --          --          --
consulting engagement costs
Acquisition-related depreciation &
amortization of property & equipment   0.06        0.08         0.06
and intangible write-ups
Merger & integration costs             --          0.01         --
EMEA restructuring                    0.01        (0.02)       --
Other                                  --          0.01         --
Non-GAAP income from continuing
operations, net of taxes, per diluted  $0.33        $0.39        $0.39
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
                    December  December  December December  December  December
                   31,       31,       31,      31,       31,       31,
                    2013      2012      2013     2012      2013      2012
                                                               
GAAP income from
continuing          $28,276 $24,192 $2,698   $3,627    ($11,720) ($12,107)
operations
Adjustments:                                                    
Acquisition-related
severance &         --       271      --      --       --       --
consulting
engagement costs
Acquisition-related
depreciation &
amortization of
property &          4,179     5,004     --      --       --       --
equipment and
intangible
write-ups
Merger &            --       --       --      --       --       697
integration costs
EMEA restructuring --       --       320     (757)    --       --
Other               --       436      --      --       --       --
Non-GAAP income
from continuing     $32,455   $29,903   $3,018   $2,870    ($11,720) ($11,410)
operations
                                                               
                   Americas            EMEA              Other ^(1)
                   Three Months Ended  Three Months Ended Three Months Ended
                    December  September December September December  September
                   31,       30,       31,      30,       31,       30,
                    2013      2013      2013     2013      2013      2013
                                                               
GAAP income from
continuing          $28,276   $26,987 $2,698   $3,423    ($11,720) ($11,631)
operations
Adjustments:                                                    
Acquisition-related
severance &         --       (3)      --      --       --       --
consulting
engagement costs
Acquisition-related
depreciation &
amortization of
property &          4,179    4,194     --      --       --       --
equipment and
intangible
write-ups
Merger &            --       --       --      --       --       73
integration costs
EMEA restructuring --       --       320     (67)     --       --
Other               --       --       --      --       --       --
Non-GAAP income
from continuing     $32,455   $31,178   $3,018   $3,356    ($11,720) ($11,558)
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
                                                                
                                                    Year Ended
                                                    December 31, December 31,
                                                     2013         2012
GAAP income from continuing operations               $53,527      $47,779
Adjustments:                                                     
Acquisition-related severance & consulting           1,670       968
engagement costs
Acquisition-related depreciation & amortization of   17,012      14,823
property & equipment and intangible write-ups
Merger & integration costs                           444         3,848
EMEA restructuring                                  264         522
Other                                                --          1,404
Non-GAAP income from continuing operations           $72,917      $69,344
                                                                
                                                    Year Ended
                                                    December 31, December 31,
                                                     2013         2012
GAAP income from continuing operations, net of       $0.87        $0.93
taxes, per diluted share
Adjustments:                                                     
Acquisition-related severance & consulting           0.03        0.01
engagement costs
Acquisition-related depreciation & amortization of   0.26        0.24
property & equipment and intangible write-ups
Merger & integration costs                           0.01        0.07
EMEA restructuring                                  0.01        --
Other                                                --          0.02
Non-GAAP income from continuing operations, net of   $1.18        $1.27
taxes, per diluted share


Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information By Segment
(in thousands)
(Unaudited)
Exhibit 9
                                                              
                   Americas            EMEA             Other ^(1)
                   Year Ended          Year Ended        Year Ended
                    December  December  December December December  December
                   31,       31,       31,      31,      31,       31,
                    2013      2012      2013     2012     2013      2012
GAAP income from
continuing          $94,006 $93,580 $6,052   $5,488   ($46,531) ($51,289)
operations
Adjustments:                                                   
Acquisition-related
severance &         1,511    591      --      --      159      377
consulting
engagement costs
Acquisition-related
depreciation &
amortization of
property &          17,012    14,823    --      --      --       --
equipment and
intangible
write-ups
Merger &            --       106       --      --      444      3,742
integration costs
EMEA restructuring --       --       264     422     --       100
Other               --       1,404    --      --      --       --
Non-GAAP income
from continuing     $112,529  $110,504  $6,316   $5,910   ($45,928) ($47,070)
operations
                                                              
^(1) Other includes corporate and other costs.                                    

Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(Unaudited)
Exhibit 10
                                                             
                                                             
                                                              Business Outlook
                                                             First Quarter
                                                              2014
                                                             
GAAP income from continuing operations, net of taxes, per     $0.25 - $0.28
diluted share
Adjustments:                                                  
Acquisition-related severance & consulting engagement costs   --
Acquisition-related depreciation & amortization of property & 0.06
equipment and intangible write-ups
Merger & integration costs                                    --
EMEA restructuring                                           --
Other                                                         --
Non-GAAP income from continuing operations, net of taxes, per $0.31 - $0.34
diluted share
                                                             
                                                             
                                                              Business Outlook
                                                             Full Year
                                                              2014
                                                             
GAAP income from continuing operations, net of taxes, per     $1.20 - $1.30
diluted share
Adjustments:                                                  
Acquisition-related severance & consulting engagement costs   --
Acquisition-related depreciation & amortization of property & 0.24
equipment and intangible write-ups
Merger & integration costs                                    --
EMEA restructuring                                           --
Other                                                         --
Non-GAAP income from continuing operations, net of taxes, per $1.44 - $1.54
diluted share

Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(Unaudited)
Exhibit 11
                                                                
                                                    Three Months Ended
                                                    December 31, December 31,
                                                     2013         2012
GAAP tax rate                                        38.8%        11.0%
Adjustments:                                                     
Acquisition-related severance & consulting           --           0.3%
engagement costs
Acquisition-related depreciation & amortization of   -1.0%        5.0%
property & equipment and intangible write-ups
Merger & integration costs                           --           0.8%
EMEA restructuring                                  -0.6%        0.4%
Other                                                --           0.5%
Non-GAAP tax rate                                    37.2%        18.0%
                                                                
                                                    Three Months
                                                     Ended        Year Ended
                                                    March 31,    December 31,
                                                     2014         2014
GAAP tax rate                                        10.0%        24.8%
Adjustments:                                                     
Acquisition-related severance & consulting           --           --
engagement costs
Acquisition-related depreciation & amortization of   9.5%         2.0%
property & equipment and intangible write-ups
Merger & integration costs                           --           --
EMEA restructuring                                  --           --
Other                                                --           --
Non-GAAP tax rate                                    19.5%        26.8%

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