Sykes Enterprises, Incorporated Reports First-Quarter 2014 Financial Results

Sykes Enterprises, Incorporated Reports First-Quarter 2014 Financial Results

   --First quarter 2014's healthy revenue growth drive margin expansion and
                     diluted earnings per share increase

          --First quarter 2014 operating cash flow dynamics improve

--Capacity utilization rate improvement and capacity rationalization continue

--SYKES expands its Latin America delivery footprint with entry into Colombia

                    --Alpine Access integration completed

 --Raising the bottom end of 2014's revenue and non-GAAP diluted earnings per
                                 share ranges

TAMPA, Fla., May 5, 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 first-quarter ended March 31, 2014.

First Quarter 2014 Financial Highlights

  *First quarter 2014 revenues of $324.4 million increased $23.2 million, or
    7.7%, from $301.2 million in the comparable quarter last year; on a
    constant currency basis, first quarter 2014 revenues increased 10.7%
    comparably, driven largely by the expansion of new and existing client
    programs across the communications, financial services, travel and
    technology verticals
    
  *First quarter 2014 operating margin was 4.5% versus 3.3% in the same
    period last year; on a non-GAAP basis (see section titled "Non-GAAP
    Financial Measures" for an explanation and see Exhibit 5 for
    reconciliation), first quarter 2014 operating margin increased to 5.7%
    versus 5.0% in the same period last year due to strong revenue growth and
    operating leverage driven by better expense control, which was partly
    helped by the on-going facilities rationalization
    
  *First quarter 2014 diluted earnings per share increased 59% to $0.24
    versus $0.15 in the comparable quarter last year with the increase on a
    comparable basis driven by solid revenue growth and expense leverage;
    first quarter 2014 diluted earnings per share were lower relative to
    Company's February 2014 business outlook range of $0.25 to $0.28 with the
    decrease due principally to a higher effective tax rate driven by a shift
    in the geographic mix of earnings to higher tax rate jurisdictions
    
  *On a non-GAAP basis, first quarter 2014 diluted earnings per share
    increased 32% to $0.30 versus $0.23 in the same period last year (see
    Exhibit 5 for reconciliation) with the comparable increase driven largely
    by the previously-mentioned factors. First quarter 2014 diluted earnings
    per share were lower relative to the Company's February 2014 business
    outlook range of $0.31 to $0.34, which was also largely due to the above
    mentioned factors; however, adjusting for the interest and other expenses
    of $0.7 million as well as a non-GAAP effective tax rate of 19.5% as
    projected in the Company's February 2014 business outlook, first quarter
    2014 diluted earnings per share would have been $0.34 – at the top-end of
    the business outlook range
    
  *Consolidated capacity utilization rate increased to 76% in the first
    quarter of 2014 from 73% in the comparable period last year amid an
    increase in net seat capacity additions driven by current and forecasted
    demand from new and existing client programs across both the EMEA and
    Americas regions; consolidated capacity utilization rate increased even on
    a sequential basis to 76% in the first quarter of 2014 from 73% in the
    fourth quarter of 2013 driven by net seat capacity reductions coupled with
    agent ramps related to forecasted demand in new and existing client
    programs across both the EMEA and Americas regions

Americas Region

Revenues from the Company's Americas region, including operations in North
America and offshore (Latin America, South Asia and the Asia Pacific region),
increased 2.4% to $261.2 million, or 80.5% of total revenues, for the first
quarter of 2014 compared to $255.2 million, or 84.7% of total revenues, in the
same prior year period. On a constant currency basis, first quarter 2014
Americas revenues increased 6.4% comparably driven largely by the expansion of
existing client programs across the communications vertical, more than
offsetting the anticipated demand downtick among a few clients within the
technology, transportation and financial services verticals.

Sequentially, revenues generated from the Americas region were down 4.8% to
$261.2 million from $274.6 million, or 81.9% of total revenues, in the fourth
quarter of 2013. On a constant currency basis, first quarter 2014 Americas
revenues decreased 3.1% over the fourth quarter, due principally to
seasonality.

The Americas income from operations in the first quarter of 2014 increased
16.0% to $22.6 million, with an operating margin of 8.7% versus 7.6% in the
comparable quarter last year. On a non-GAAP basis, the Americas operating
margin increased to 10.2% from 9.5% in the comparable quarter last year,
driven by growth in new and existing client programs and operating leverage
driven by better expense control, helped partly by on-going facilities
rationalization (see Exhibit 6 for reconciliation).

Sequentially, the Americas income from operations in the first quarter of 2014
decreased 19.9% to $22.6 million, with an operating margin of 8.7% versus
10.3% in the fourth quarter of 2013.On a non-GAAP basis, the Americas
operating margin decreased to 10.2% from 11.8%. The decrease was due largely
to seasonality coupled with investments and ramp costs associated with the
expansion of the delivery footprint into Colombia (see Exhibit 6 for
reconciliation).

EMEA Region

Revenues from the Company's Europe, Middle East and Africa (EMEA) region
increased 37.3% to $63.2 million, representing 19.5% of total revenues for the
first quarter of 2014, compared to $46.0 million, or 15.3% of total revenues,
in the same prior year period. On a constant currency basis, EMEA revenues
increased 34.6%, driven largely by the expansion of new and existing client
programs across the communications, technology, financial services and
transportation verticals.

Sequentially, revenues from the Company's EMEA region increased 4.0% to $63.2
million, or 19.5% of SYKES' total revenues, versus $60.8 million, or 18.1% of
SYKES' total revenues, in the fourth quarter of 2013.On a constant currency
basis, EMEA revenues increased 3.4% 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 operations in the first quarter of 2014 was $2.9
million, or 4.6% of EMEA revenues, versus $1.9 million, or 4.0% of revenues,
in the comparable quarter last year.On a non-GAAP basis, the operating margin
increased to 4.6% from 4.0% in the same period last year driven by strong
revenue growth from new and existing client programs and operating leverage
driven by better expense control (see Exhibit 6 for reconciliation).

Sequentially, the EMEA region's income from operations in the first quarter of
2014 was $2.9 million, or 4.6% of EMEA revenues, versus $2.7 million, or 4.4%
of revenues, in the fourth quarter of 2013. On a non-GAAP basis, the EMEA
operating margin decreased to 4.6% from 5.0% due to on-going ramp expenses
(see Exhibit 6 for reconciliation).

Corporate G&A Expenses

Corporate G&A expenses decreased to $11.1 million, or 3.4% of revenues, in the
first quarter of 2014, compared to $11.5 million, or 3.8% of revenues, in the
comparable quarter last year, which included merger and integration costs
related to the Alpine Access acquisition. On a non-GAAP basis, corporate G&A
expenses were essentially flat at $11.1 million on a comparable basis,
however, decreased slightly as percentage of revenues to 3.4% from 3.7% of
revenues in the first quarter of 2013, with the percentage decline driven
largely by expense leverage due to higher comparable revenues (see Exhibit 6
for reconciliation).

Sequentially, corporate G&A expenses decreased to $11.1 million, or 3.4% of
revenues, from $11.7 million, or 3.5% of revenues, relative to the fourth
quarter of 2013. On a non-GAAP basis, corporate G&A expenses decreased to
$11.1 million, or 3.4% of revenues, from $11.7 million, or 3.5% of revenues,
in the fourth quarter of 2013, driven largely by lower variable incentive
compensation (see Exhibit 6 for reconciliation).

Interest & Other Expense and Taxes

Interest and other income in the first quarter of 2014 totaled $0.4 million
compared to interest and other expense of $0.2 million for the same period
last year. The positive swing in other income on a comparable basis was driven
principally by derivative gains related to foreign currency exposure
associated with inter-company borrowings.

The Company recorded an effective tax rate of 30.7% for the first quarter of
2014 versus 32.9% in the same period last year and above the estimated 10%
provided in the Company's February 2014 business outlook. The decrease in the
effective tax rate on a comparable basis was due principally to a discrete
adjustment in the year-ago period 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. Relative to the February
2014 business outlook, the increase in the effective tax rate was driven
largely by a shift in the geographic mix of earnings to higher tax rate
jurisdictions.

On a non-GAAP basis, the first quarter 2014 effective tax rate was 31.3%
compared to 32.9% in the same period last year and above the estimated 19.5%
provided in the Company's February 2014 business outlook (see Exhibit 8 for
reconciliation). The flux in the effective tax rate on a comparable and
relative basis was due to the above-mentioned factors.

Liquidity and Capital Resources

The Company's balance sheet at March 31, 2014 remained strong with cash and
cash equivalents of $210.5 million, of which $196.5 million, or 93.3% 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 was $16.2 million in the first
quarter of 2014 versus net cash used for operating activities of $12.8 million
in the same period last year, with the positive swing of $29.0 million driven
by a combination of increased net income, higher non-cash charges and changes
in operating assets and liabilities. During the quarter, the Company
repurchased approximately 130,000 shares for approximately $2.6 million with
prices ranging between $19.92 and $19.98 per share. Approximately, 1.5 million
shares remain under the August 2011 repurchase authorization of 5.0 million
shares. Also during the quarter, the Company paid down approximately $2.0
million under its revolving senior credit facility, leaving it with $96.0
million of borrowings outstanding at March 31, 2014, down from $98.0 million
at December 31, 2013. The amount available under the Company's credit facility
was $149.0 million at March 31, 2014.

Business Outlook

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

  *The Company's business outlook for the full year reflects the continuation
    of operating trends previously discussed on February 18, 2014. These
    trends anticipate growth from both existing and new client programs within
    the Americas and EMEA regions. Based on first quarter's financial results,
    the Company is raising the bottom end of its revenue and non-GAAP diluted
    earnings per share ranges. The Company still expects consolidated
    second-half 2014 revenues, operating margins and diluted earnings per
    share to be greater than the first-half of 2014. Moreover, the second
    quarter business outlook reflects typical demand seasonality and fewer
    workdays, as well as the timing of public holidays, which is expected to
    result in higher costs in the form of overtime pay for employees in
    certain countries. Additionally, the second quarter 2014 business outlook
    on a GAAP basis reflects the impact of one-time expenses associated with
    management transition, including the CFO retirement;
    
  *The Company's revenues and earnings per share assumptions for the second
    quarter and full year 2014 are based on foreign exchange rates as of April
    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 second quarter and full-year;
    
  *The Company remains on track to add approximately 1,200 seats on a gross
    basis in 2014. The Company added roughly 600 seats in the first quarter,
    with the remainder slated for the second half of 2014. Total seat count on
    a net basis for the full year, however, is still expected to decrease by
    approximately 1,200 seats as the Company continues to rationalize excess
    capacity;
    
  *The Company anticipates interest and other expense of approximately $0.7
    million for the second quarter and $1.9 million for the full year 2014,
    which includes interest expense related to the debt associated with the
    acquisition of Alpine Access. The updated interest and other expense
    amount excludes the potential impact of any un-forecasted future foreign
    exchange gains or losses in other expense; and
    
  *The Company anticipates a slightly higher effective tax rate for the
    full-year 2014 compared to its initial projections provided in its
    February 2014 business outlook, with the increase driven chiefly by a
    shift in the geographic mix of earnings to higher tax rate jurisdictions.

Considering the above factors, the Company anticipates the following financial
results for the three months ending June 30, 2014:

  *Revenues in the range of $320.0 million to $325.0 million,
  *Effective tax rate of approximately 25%; **on a non-GAAP basis, an
    effective tax rate of approximately 29%
  *Fully diluted share count of approximately 42.8 million
  *Diluted earnings per share in the range of $0.18 to $0.20
  ***Non-GAAP diluted earnings per share in the range of $0.25 to $0.27
  *Capital expenditures in the range of $12.0 million to $14.0 million 

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

  *Revenues in the range of $1,320.0 million to $1,335.0 million
  *Effective tax rate of approximately 26%; **on a non-GAAP basis, an
    effective tax rate of approximately 28%
  *Fully diluted share count of approximately 42.8 million
  *Diluted earnings per share in the range of $1.20 to $1.29
  ***Non-GAAP diluted earnings per share in the range of $1.45 to $1.54
  *Capital expenditures in the range of $45.0 million to $50.0 million 

** See exhibits 7 & 8 for second quarter and full-year 2014 non-GAAP diluted
earnings per share and tax rate reconciliations.

Material Aspects of Alpine Access Integration Successfully Completed

In conjunction with this important milestone, SYKES announced today that
Christopher M. Carrington, who was under a newly created position of Executive
Vice President of Global Delivery for the Company and the former President and
CEO of Alpine Access ("Alpine"), has decided to step down. Mr. Carrington has
agreed to assist the Company with an orderly transition of his duties, which
is expected to be completed on or before June 30, 2014.

"When we closed on the acquisition of Alpine in August 2012, we envisioned the
full integration process taking up to two years. I am pleased to report that
under Chris' leadership, the integration has already been completed," said
Chuck Sykes, President and Chief Executive Officer of SYKES. "I would like to
thank Chris for his commitment in seeing the merger and integration through to
an early and successful conclusion. His efforts and dedication have solidly
positioned our SYKES Home® business as a best-in-class virtual at-home agent
delivery platform and a clear market leader, with approximately 7,500 at-home
customer contact agents and a constant currency revenue growth rate of 19.2%
on a standalone basis in 2013."

Commenting on the success of the integration and his decision to resign, Mr.
Carrington said, "It's with mixed emotions that I announce my resignation, as
I have thoroughly enjoyed working with Chuck and the rest of the SYKES
leadership team since the acquisition of Alpine in 2012. However, after
wrapping up the integration and with the entire global SYKES organization well
positioned for the future, I felt the time was right to step aside. I am
looking forward to spending some much-needed time with my family this summer
before embarking on the next phase of my career."

Conference Call

The Company will conduct a conference call regarding the content of this
release tomorrow, May 6, 2014, at 10:00 a.m. Eastern Daylight 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,
and (xxvi) 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
                                    March 31,  March 31,  December 31,
                                     2014       2013       2013
                                                        
Revenues                             $324,429 $301,244 $335,338
Direct salaries and related costs    (221,625)  (203,706)  (226,418)
General and administrative           (73,377)   (73,733)   (74,753)
Depreciation, net                    (11,298)   (10,169)   (11,221)
Amortization of intangibles          (3,651)    (3,759)    (3,692)
Income from operations               14,478     9,877      19,254
Total other income (expense)         395        (159)      (1,276)
Income before income taxes           14,873     9,718      17,978
Income taxes                         (4,560)    (3,200)    (6,978)
Net income                           $10,313  $6,518   $11,000
                                                        
Net income per share:                                    
Basic                                $0.24    $0.15    $0.26
Diluted                              $0.24    $0.15    $0.26
                                                        
Weighted average shares outstanding:                     
Basic                                42,739    43,036    42,759
Diluted                              42,837    43,052    42,880


Sykes Enterprises, Incorporated
Segment Results
(in thousands, except per share data)
(Unaudited)
Exhibit 2
                                                         
                                     Three Months Ended
                                     March 31,  March 31,  December 31,
                                      2014       2013       2013
                                                         
Revenues:                                                 
Americas                              $261,246 $255,214 $274,558
EMEA                                  63,183     46,030     60,780
Total                                 $324,429 $301,244 $335,338
                                                         
Operating Income:                                         
Americas                              $22,647  $19,522  $28,276
EMEA                                  2,884      1,855      2,698
Corporate G&A expenses                (11,053)   (11,500)   (11,720)
Income from operations                14,478     9,877      19,254
                                                         
Total other income (expense), net     395        (159)      (1,276)
Income taxes                          (4,560)    (3,200)    (6,978)
                                                         
Income from operations, net of taxes $10,313  $6,518   $11,000


Sykes Enterprises, Incorporated
Consolidated Balance Sheets
(in thousands, except seat data)
(Unaudited)
Exhibit 3
                                                                
                                                                 
                                                                
                                                                
                                                                
                                  March 31,       December 31,    
                                   2014            2013
                                                                
Assets:                                                          
Current assets                     $522,919      $513,283      
Property and equipment, net        114,653         117,549         
Goodwill & intangibles, net        268,342         275,857         
Other noncurrent assets            30,757          43,572          
Total assets                       $936,671      $950,261      
                                                                
Liabilities & Shareholders'                                      
Equity:
Current liabilities                $167,482      $173,380      
Noncurrent liabilities             133,635         141,177         
Shareholders' equity               635,554         635,704         
Total liabilities and              $936,671      $950,261      
shareholders' equity
                                                                
                                                                
Sykes Enterprises, Incorporated                                             
Supplementary Data                                                           
                                                                
                                                                
                                  Q1 2014         Q1 2013         
                                                                
Geographic Mix (% of Total                                       
Revenues):
Americas ^(1)                      81%             85%             
Europe, Middle East & Africa       19%             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.
                                                                
                                  Q1 2014         Q1 2013         
                                                                
Vertical Industry Mix (% of Total Revenues):                      
Communications                    38%             32%             
Financial Services                26%             28%             
Technology / Consumer             16%             16%             
Transportation & Leisure          8%              9%              
Healthcare                        6%              8%              
Other                             6%              7%              
Total                             100%            100%            
                                                                
                                  Seat Capacity ^(3)
                                  Q1 2014         Q1 2013         Q4 2013
                                                                
Americas ^(2)                     35,000          35,100          36,100
EMEA                              6,200           5,300           6,100
Total                             41,200          40,400          42,200
                                                                
Offshore                          22,000          22,900          23,400
                                                                
                                  Capacity Utilization
                                  Q1 2014         Q1 2013         Q4 2013
                                                                
Americas ^(2)                     74%             72%             70%
EMEA                              85%             82%             87%
Total                             76%             73%             73%
                                                                
Offshore                          74%             76%             70%
                                                                
^(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 first quarter
2014, the Company had approximately 3,500 agent FTEs working virtually from
home both in the U.S. and Canada.

Sykes Enterprises, Incorporated
Cash Flow from Operations
(in thousands)
(Unaudited)
Exhibit 4
                                                    
                                                    Three Months Ended
                                                    March 31, March 31,
                                                     2014      2013
                                                             
Cash Flow From Operating Activities:                          
Net income                                           $10,313 $6,518
Depreciation                                         11,539    10,422
Amortization of intangibles                          3,651     3,759
Amortization of deferred grants                      (589)     (253)
Changes in assets and liabilities and other          (8,758)   (33,259)
Net cash provided by (used for) operating activities $16,156 $(12,813)
                                                             
Capital expenditures                                 $11,706 $13,066
Cash interest paid                                   $445    $481
Cash taxes paid                                      $3,796  $5,017


Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(in thousands, except per share data)
(Unaudited)
Exhibit 5
                                                               
                                             Three Months Ended
                                             March 31, March 31, December 31,
                                              2014      2013      2013
                                                               
GAAP income from operations                   $14,478   $9,877    $19,254
Adjustments:                                                    
Acquisition-related severance & consulting    --       366      --
engagement costs
Acquisition-related depreciation &
amortization of property & equipment and      4,102    4,435    4,179
intangible write-ups
Merger & integration costs                    --       320      --
EMEA restructuring                           --       7        320
Other                                         --       --       --
Non-GAAP income from operations               $18,580   $15,005   $23,753
                                                               
                                             Three Months Ended
                                             March 31, March 31, December 31,
                                              2014      2013      2013
                                                               
GAAP income from operations, net of taxes,    $0.24     $0.15     $0.26
per diluted share
Adjustments:                                                    
Acquisition-related severance & consulting    --       0.01      --
engagement costs
Acquisition-related depreciation &
amortization of property & equipment and      0.06      0.07      0.06
intangible write-ups
Merger & integration costs                    --       --       --
EMEA restructuring                           --       --       0.01
Other                                         --       --       --
Non-GAAP income from operations, net of       $0.30     $0.23     $0.33
taxes, per diluted share


Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information By Segment
(in thousands)
(Unaudited)
Exhibit 6
                                                            
                   Americas            EMEA           Other ^(1)
                   Three Months Ended  Three Months    Three Months Ended
                                        Ended
                    March 31, March 31, March  March    March 31, March 31,
                   2014      2013      31,    31,      2014      2013
                                        2014   2013
                                                            
GAAP income from    $22,647 $19,522 $2,884 $1,855   ($11,053) ($11,500)
operations
Adjustments:                                                 
Acquisition-related
severance &         --       207      --    --      --       159
consulting
engagement costs
Acquisition-related
depreciation &
amortization of
property &          4,102     4,435     --    --      --       --
equipment and
intangible
write-ups
Merger &            --       --       --    --      --       320
integration costs
EMEA restructuring --       --       --    7       --       --
Other               --       --       --    --      --       --
Non-GAAP income     $26,749   $24,164   $2,884 $1,862   ($11,053) ($11,021)
from operations
                                                            
                   Americas            EMEA           Other ^(1)
                   Three Months Ended  Three Months    Three Months Ended
                                        Ended
                    March 31, December  March  December March 31, December
                   2014      31,       31,    31,      2014      31,
                              2013      2014   2013               2013
                                                            
GAAP income from    $22,647   $28,276 $2,884 $2,698   ($11,053) ($11,720)
operations
Adjustments:                                                 
Acquisition-related
severance &         --       --       --    --      --       --
consulting
engagement costs
Acquisition-related
depreciation &
amortization of
property &          4,102    4,179     --    --      --       --
equipment and
intangible
write-ups
Merger &            --       --       --    --      --       --
integration costs
EMEA restructuring --       --       --    320     --       --
Other               --       --       --    --      --       --
Non-GAAP income     $26,749   $32,455   $2,884 $3,018   ($11,053) ($11,720)
from operations
                                                            
^(1) Other includes corporate and other costs.                                  


Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(Unaudited)
Exhibit 7
                                                             
                                                              Business Outlook
                                                             Second Quarter
                                                              2014
                                                             
GAAP income from operations, net of taxes, per diluted share  $0.18 - $0.20
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                                                         0.01
Non-GAAP income from operations, net of taxes, per diluted    $0.25 - $0.27
share
                                                             
                                                              Business Outlook
                                                             Full Year
                                                              2014
                                                             
GAAP income from operations, net of taxes, per diluted share  $1.20 - $1.29
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                                                         0.01
Non-GAAP income from operations, net of taxes, per diluted    $1.45 - $1.54
share


Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(Unaudited)
Exhibit 8
                                                               
                                       Three Months Ended
                                       March 31,    March 31,    December 31,
                                        2014         2013         2013
GAAP tax rate                           31%          33%          39%
Adjustments:                                                    
Acquisition-related severance &         --           --           --
consulting engagement costs
Acquisition-related depreciation &
amortization of property & equipment    --           --           -1%
and intangible write-ups
Merger & integration costs              --           --           --
EMEA restructuring                     --           --           -1%
Other                                   --           --           --
Non-GAAP tax rate                       31%          33%          37%
                                                               
                                       Three Months              
                                        Ended        Year Ended
                                       June 30,     December 31, 
                                        2014         2014
GAAP tax rate                           25%          26%          
Adjustments:                                                    
Acquisition-related severance &         --           --           
consulting engagement costs
Acquisition-related depreciation &
amortization of property & equipment    4%           2%           
and intangible write-ups
Merger & integration costs              --           --           
EMEA restructuring                     --           --           
Other                                   --           --           
Non-GAAP tax rate                       29%          28%          

CONTACT: For additional information contact:
         Subhaash Kumar
         Sykes Enterprises, Incorporated
         (813) 233-7143
 
Press spacebar to pause and continue. Press esc to stop.