Sykes Enterprises, Incorporated Reports Second Quarter 2021 Financial Results
Sykes Enterprises (SYKE) announced a merger with Sitel Group at $54 per share, valuing the deal at $2.2 billion. The transaction is expected to close shortly after a shareholder meeting on August 24, 2021. In Q2 2021, SYKE reported revenue of $448.9 million, up 7.7% YoY, attributed to program expansions and new client wins, including contributions from the Taylor Media Corp acquisition. Diluted EPS rose to $0.58 from $0.55. However, the Americas region saw a 1.4% organic revenue decline. The company maintains a solid cash position of $103.2 million.
- Q2 2021 revenue increased by 7.7% to $448.9 million, driven by demand growth.
- Acquisition of Taylor Media Corp contributed positively to revenue.
- Diluted EPS rose to $0.58 from $0.55 in the previous year.
- Americas region organic revenue decreased by 1.4% due to COVID-19 impact.
- Other loss from operations increased to $22.1 million, partly from deal costs.
TAMPA, Fla., Aug. 09, 2021 (GLOBE NEWSWIRE) -- Acquisition Update: On June 18, 2021, Sykes Enterprises, Incorporated ("SYKES" or the “Company”) (NASDAQ: SYKE), a leading full life cycle provider of global customer experience management services, multichannel demand generation and digital transformation, and Sitel Group®, a leading global provider of customer experience (“CX”) products and solutions, announced they have entered into a definitive merger agreement (the “Merger Agreement”) in which Sitel Group®, through a wholly owned subsidiary, will acquire all of SYKES’ outstanding shares of common stock at a purchase price of
Sykes Enterprises, Incorporated announced today its financial results for the second-quarter ended June 30, 2021.
Second Quarter 2021 Financial Highlights
- Second quarter 2021 revenues of
$448.9 million increased$32.1 million , or7.7% , from$416.8 million in the comparable quarter last year, driven by demand from existing and new program expansions as well as new client wins. In addition, growth in the quarter also reflects the revenue contribution of the acquisition of the Taylor Media Corp., owner of The Penny Hoarder, (“TMC”/“TPH”), which closed at year-end 2020 - Second quarter 2021 comparable revenue growth of
7.7% spanned the healthcare, financial services, technology, and other verticals, more than offsetting the lower demand in the transportation & leisure as well as communications verticals - Non-GAAP second quarter 2021 organic constant currency revenues (see section titled “Non-GAAP Financial Measures” for an explanation and see Exhibit 11 for reconciliation) increased
0.3% comparably driven largely by the aforementioned factors - Second quarter 2021 operating income increased
9.2% to$29.7 million on a comparable basis with operating margin remaining virtually unchanged at6.6% versus6.5% for the comparable period last year. On a non-GAAP basis (see Exhibit 6 for reconciliation), which excludes the impact of the impairment of right-of-use (“ROU”) assets and other fixed assets related to COVID-19 driven facility exits, acquisition-related intangibles amortization, merger & integration costs, and other costs related to facility exits, second quarter 2021 operating margin was virtually unchanged as well at8.4% versus8.5% in the same period last year - Second quarter 2021 diluted earnings per share were
$0.58 versus$0.55 in the same period last year, with the comparable increase driven by a combination of factors, including contribution from TMC/TPH acquisition, lower effective tax rate and a lower share count, some of which was mitigated by a negative swing in other expenses arising from an increase in losses at XSell Technologies, Inc., which is accelerating its growth investments in its business, coupled with a decrease in mark-to-market adjustment of stock‐based deferred compensation programs funded through Rabbi Trust investments - On a non-GAAP basis, second quarter 2021 diluted earnings per share were
$0.73 versus$0.71 on a comparable basis (see Exhibit 6 for reconciliation), with the increase due largely to aforementioned factors - Consolidated capacity utilization rate remained unchanged on a comparable basis at
73% in the second quarter of 2021. Including permanent home agents in the comparable utilization calculation, however, the capacity utilization would have increased further comparably
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
The Americas income from operations for the second quarter of 2021 increased
EMEA Region
Revenues from the Company’s Europe, Middle East and Africa (EMEA) region increased
The EMEA region’s income from operations for the second quarter of 2021 increased
Other
Other loss from operations, which includes primarily corporate as well as some other costs, increased to
Other Income (Expense) and Taxes
Total other income (expense), net for the second quarter of 2021 was
The Company recorded an effective tax rate of
On a non-GAAP basis, the second quarter 2021 effective tax rate was
Liquidity and Capital Resources
The Company’s balance sheet at June 30, 2021, remained strong with cash and cash equivalents of
Conference Call
In light of the pending acquisition by Sitel Group®, the Company does not plan to host an earnings conference call nor provide forward-looking guidance. This press release is also posted on the SYKES website at https://investor.sykes.com/company/investors/investor-news/2021/default.aspx.
Non-GAAP Financial Measures
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. The Company, however, uses non-GAAP measures as a way to assist readers in further understanding the Company’s results. The Company believes these non-GAAP financial measures are important indicators of performance as they are intrinsic to how management evaluates and rewards performance from its underlying operations. Constant currency organic revenue growth, which is a non-GAAP measure, for instance, facilitates comparability between time periods as this presentation allows the Company to isolate the effect of acquisition-related revenues and exchange rate differences by assuming a constant exchange rate between periods for translation. Similarly, amortization of intangible assets and depreciation of the step up in value of purchased tangible assets are excluded for purposes of calculating the non-GAAP financial measures – including but not limited to non-GAAP operating margins, non-GAAP tax rate, non-GAAP net income, non-GAAP net income per diluted share and non-GAAP income from operations – because the Company does not acquire businesses on a predictable cycle and the exclusion facilitates a more meaningful evaluation of current operating performance and comparison to operating performance in other periods as well as performance relative to its peers who are not acquisitive or as acquisitive. The Company also excludes the impact or any corresponding reversals of material restructurings approved by the appropriate level of management, gain or loss on sale of facilities, release of cumulative translation adjustment (CTA), lease obligations and facility exit costs, severance and related costs, non-cash impairment charges, merger and integration costs associated with an acquisition and accretion of interest on contingent consideration of an acquisition from non-GAAP Income (loss) from operations and non-GAAP net income because the amounts are not reflective of ongoing operating results and do not contribute to a meaningful evaluation of current operating performance or comparison to operating performance in other periods. Refer to the exhibits in the release for detailed reconciliations.
About Sykes Enterprises, Incorporated
Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) is a leading full lifecycle provider of global customer experience management services, multichannel demand generation and digital transformation. SYKES provides differentiated full lifecycle customer experience management solutions and services primarily to Global 2000 companies and their end customers principally in the financial services, technology, communications, transportation & leisure and healthcare industries. The Company’s differentiated full lifecycle services platform effectively engages customers at every touchpoint within the customer journey, including digital media and acquisition, sales expertise, customer service, technical support and retention, many of which can be optimized through a suite of digital transformation capabilities under its SYKES Digital Services (“SDS”) group, which spans robotic process automation (“RPA”), self-service, insight analytics and digital learning. In addition to digital transformation, SYKES also provides artificial intelligence (“AI”) solutions that can be embedded and leveraged across its lifecycle offerings. The Company serves its clients through two geographic operating regions: the Americas (United States, Canada, Latin America, Australia and the Asia Pacific Rim) and EMEA (Europe, the Middle East and Africa). The Company’s Americas and EMEA regions primarily provide customer experience management solutions and services with an emphasis on inbound multichannel demand generation, customer service and technical support to its clients’ customers. These services are delivered through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital self-service. The Company also provides various enterprise support services in the United States that include services for its clients’ internal support operations, from technical staffing services to outsourced corporate help desk services. In Europe, the Company also provide fulfillment services, which include order processing, payment processing, inventory control, product delivery and product returns handling. Additionally, through the Company’s acquisition of RPA provider Symphony Ventures Ltd (“Symphony”) coupled with its investment in AI through XSell Technologies, Inc. (“XSell”), the Company also provides a suite of digital transformation capabilities that optimizes its differentiated full lifecycle management services platform. The Company’s complete service offering helps its clients acquire, retain and increase the lifetime value of their customer relationships. The Company has developed an extensive global reach with customer experience management centers across six continents, including North America, South America, Europe, Asia, Australia and Africa. The Company delivers cost-effective solutions that generate demand, enhance the customer service experience, promote stronger brand loyalty, and bring about high levels of performance and profitability. For additional information please visit www.sykes.com.
Forward-Looking Statements
This press release may contain “forward-looking statements,” including SYKES’ estimates of its 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 are intended to identify such forward-looking statements. 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. Statements about the effects of the COVID-19 pandemic on our business, operations, financial performance and prospects may constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our clients, third parties and us. 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, (iii) SYKES’ ability of maintaining margins, (iv) SYKES’ ability to continue the growth of its support service revenues through additional technical and customer experience management centers, (v) currency fluctuations, (vi) the timing of significant orders for SYKES’ products and services, (vii) loss or addition of significant clients, (viii) the early termination of contracts by clients, (ix) SYKES’ ability to recognize deferred revenue through delivery of products or satisfactory performance of services, (x) construction delays of new or expansion of existing customer experience management centers, (xi) difficulties or delays in implementing SYKES’ bundled service offerings, (xii) failure to achieve sales, marketing and other objectives, (xiii) variations in the terms and the elements of services offered under SYKES’ standardized contract including those for future bundled service offerings, (xiv) changes in applicable accounting principles or interpretations of such principles, (xv) delays in SYKES’ ability to develop new products and services and market acceptance of new products and services, (xvi) rapid technological change, (xvii) political and country-specific risks inherent in conducting business abroad, (xviii) SYKES’ ability to attract and retain key management personnel, (xix) SYKES’ ability to further penetrate into vertically integrated markets, (xx) SYKES’ ability to expand its global presence through strategic alliances and selective acquisitions, (xxi) SYKES’ ability to continue to establish a competitive advantage through sophisticated technological capabilities, (xxii) the ultimate outcome of any lawsuits or penalties (regulatory or otherwise), (xxiii) SYKES’ dependence on trends toward outsourcing, (xxiv) risk of interruption of technical and customer experience 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, (xxv) the existence of substantial competition, (xxvi) the ability to obtain and maintain grants and other incentives, including tax holidays or otherwise, (xxvii) risks related to the integration of the businesses of SYKES, including the Qelp, Clearlink, WhistleOut, Symphony and Taylor Media Corp. (the owner of The Penny Hoarder) acquisitions and the impairment of any related goodwill, (xxviii) the ability to execute on initiatives to address inefficiencies around recruitment and retention in the U.S. and rationalize underutilized capacity methodically, (xxix) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement and (xxx) 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.
For additional information contact:
Subhaash Kumar
Sykes Enterprises, Incorporated
(813) 233-7143
Sykes Enterprises, Incorporated
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Exhibit 1
Three Months Ended June 30, | |||||||
2021 | 2020 | ||||||
Revenues | $ | 448,885 | $ | 416,833 | |||
Direct salaries and related costs | (292,086 | ) | (268,433 | ) | |||
General and administrative | (110,924 | ) | (102,664 | ) | |||
Depreciation, net | (12,809 | ) | (12,630 | ) | |||
Amortization of intangibles | (2,959 | ) | (4,093 | ) | |||
Impairment of long-lived assets | (386 | ) | (1,800 | ) | |||
Income from operations | 29,721 | 27,213 | |||||
Total other income (expense), net | (187 | ) | 1,402 | ||||
Income before income taxes | 29,534 | 28,615 | |||||
Income taxes | (6,354 | ) | (6,385 | ) | |||
Net income | $ | 23,180 | $ | 22,230 | |||
Net income per common share: | |||||||
Basic | $ | 0.58 | $ | 0.55 | |||
Diluted | $ | 0.58 | $ | 0.55 | |||
Weighted average common shares outstanding: | |||||||
Basic | 39,779 | 40,318 | |||||
Diluted | 39,942 | 40,380 |
Sykes Enterprises, Incorporated
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Exhibit 2
Six Months Ended June 30, | |||||||
2021 | 2020 | ||||||
Revenues | $ | 906,771 | $ | 827,999 | |||
Direct salaries and related costs | (591,563 | ) | (535,378 | ) | |||
General and administrative | (220,551 | ) | (205,911 | ) | |||
Depreciation, net | (25,924 | ) | (25,091 | ) | |||
Amortization of intangibles | (5,946 | ) | (8,212 | ) | |||
Impairment of long-lived assets | (1,536 | ) | (1,800 | ) | |||
Income from operations | 61,251 | 51,607 | |||||
Total other income (expense), net | (834 | ) | (3,848 | ) | |||
Income before income taxes | 60,417 | 47,759 | |||||
Income taxes | (12,259 | ) | (11,611 | ) | |||
Net income | $ | 48,158 | $ | 36,148 | |||
Net income per common share: | |||||||
Basic | $ | 1.21 | $ | 0.89 | |||
Diluted | $ | 1.21 | $ | 0.88 | |||
Weighted average common shares outstanding: | |||||||
Basic | 39,711 | 40,726 | |||||
Diluted | 39,951 | 40,857 |
Sykes Enterprises, Incorporated
Segment Results
(in thousands)
(Unaudited)
Exhibit 3
Three Months Ended June 30, | |||||||
2021 | 2020 | ||||||
Revenues: | |||||||
Americas | $ | 356,427 | $ | 339,272 | |||
EMEA | 92,455 | 77,561 | |||||
Other | 3 | — | |||||
Total | $ | 448,885 | $ | 416,833 | |||
Operating Income (Loss): | |||||||
Americas | $ | 47,275 | $ | 40,479 | |||
EMEA | 4,593 | 4,078 | |||||
Other | (22,147 | ) | (17,344 | ) | |||
Income from operations | 29,721 | 27,213 | |||||
Total other income (expense), net | (187 | ) | 1,402 | ||||
Income taxes | (6,354 | ) | (6,385 | ) | |||
Net income | $ | 23,180 | $ | 22,230 | |||
Six Months Ended June 30, | |||||||
2021 | 2020 | ||||||
Revenues: | |||||||
Americas | $ | 720,146 | $ | 672,198 | |||
EMEA | 186,622 | 155,794 | |||||
Other | 3 | 7 | |||||
Total | $ | 906,771 | $ | 827,999 | |||
Operating Income (Loss): | |||||||
Americas | $ | 92,147 | $ | 76,258 | |||
EMEA | 11,261 | 7,258 | |||||
Other | (42,157 | ) | (31,909 | ) | |||
Income from operations | 61,251 | 51,607 | |||||
Total other income (expense), net | (834 | ) | (3,848 | ) | |||
Income taxes | (12,259 | ) | (11,611 | ) | |||
Net income | $ | 48,158 | $ | 36,148 |
Sykes Enterprises, Incorporated
Consolidated Balance Sheets and Supplementary Data
(in thousands, except seat data)
(Unaudited)
Exhibit 4
June 30, 2021 | December 31, 2020 | ||||||
Assets: | |||||||
Current assets | $ | 566,806 | $ | 559,889 | |||
Property and equipment, net | 116,797 | 121,084 | |||||
Operating lease right-of-use assets | 132,032 | 158,866 | |||||
Goodwill & intangibles, net | 527,560 | 533,384 | |||||
Other noncurrent assets | 63,249 | 62,582 | |||||
Total assets | $ | 1,406,444 | $ | 1,435,805 | |||
Liabilities & Shareholders' Equity: | |||||||
Current liabilities | $ | 279,824 | $ | 295,506 | |||
Noncurrent liabilities | 181,977 | 246,645 | |||||
Shareholders' equity | 944,643 | 893,654 | |||||
Total liabilities and shareholders' equity | $ | 1,406,444 | $ | 1,435,805 |
Geographic Mix (% of Total Revenues) | |||||||
Q2 2021 | Q2 2020 | ||||||
Americas (1) | 79 | % | 81 | % | |||
Europe, Middle East & Africa (EMEA) | 21 | % | 19 | % | |||
Other | 0 | % | 0 | % | |||
Total | 100 | % | 100 | % |
(1) Includes the United States, Canada, Latin America, South Asia and the Asia Pacific Rim (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.
Vertical Industry Mix (% of Total Revenues) | |||||||
Q2 2021 | Q2 2020 | ||||||
Financial Services | 34 | % | 33 | % | |||
Technology | 22 | % | 22 | % | |||
Communications | 17 | % | 21 | % | |||
Transportation & Leisure | 6 | % | 8 | % | |||
Healthcare | 7 | % | 5 | % | |||
Other | 14 | % | 11 | % | |||
Total | 100 | % | 100 | % |
Seat Capacity | |||||||
Q2 2021 | Q2 2020 | ||||||
Americas | 37,100 | 40,400 | |||||
EMEA | 7,500 | 8,200 | |||||
Total | 44,600 | 48,600 |
Capacity Utilization | |||||||
Q2 2021 | Q2 2020 | ||||||
Americas | 73 | % | 73 | % | |||
EMEA | 72 | % | 69 | % | |||
Total | 73 | % | 73 | % |
Sykes Enterprises, Incorporated
Cash Flow from Operations
(in thousands)
(Unaudited)
Exhibit 5
Three Months Ended June 30, | |||||||
2021 | 2020 | ||||||
Cash Flow From Operating Activities: | |||||||
Net income | $ | 23,180 | $ | 22,230 | |||
Depreciation | 12,821 | 12,687 | |||||
Amortization of intangibles | 2,959 | 4,093 | |||||
Amortization of deferred grants | (240 | ) | (85 | ) | |||
Impairment losses | 386 | 1,800 | |||||
Changes in assets and liabilities and other | (13,445 | ) | 17,368 | ||||
Net cash provided by operating activities | $ | 25,661 | $ | 58,093 | |||
Capital expenditures | $ | 9,727 | $ | 11,062 | |||
Cash paid during period for interest | $ | 260 | $ | 442 | |||
Cash paid during period for income taxes | $ | 12,374 | $ | 5,148 |
Six Months Ended June 30, | |||||||
2021 | 2020 | ||||||
Cash Flow From Operating Activities: | |||||||
Net income | $ | 48,158 | $ | 36,148 | |||
Depreciation | 25,948 | 25,206 | |||||
Amortization of intangibles | 5,946 | 8,212 | |||||
Amortization of deferred grants | (480 | ) | (170 | ) | |||
Impairment losses | 1,536 | 1,800 | |||||
Changes in assets and liabilities and other | (15,208 | ) | 15,446 | ||||
Net cash provided by operating activities | $ | 65,900 | $ | 86,642 | |||
Capital expenditures | $ | 19,103 | $ | 22,880 | |||
Cash paid during period for interest | $ | 584 | $ | 1,009 | |||
Cash paid during period for income taxes | $ | 17,457 | $ | 8,947 |
Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(in thousands, except per share data)
(Unaudited)
Exhibit 6
Three Months Ended June 30, | |||||||
2021 | 2020 | ||||||
GAAP income from operations | $ | 29,721 | $ | 27,213 | |||
Adjustments: | |||||||
Long-lived asset impairment | 386 | 1,800 | |||||
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles | 3,386 | 4,489 | |||||
Merger & integration costs | 3,952 | 1,685 | |||||
Mark-to-market adjustment of stock-based compensation programs funded through Rabbi Trust Investments included in "General and administrative" costs | 1,123 | — | |||||
Other (1) | (744 | ) | 430 | ||||
Non-GAAP income from operations | $ | 37,824 | $ | 35,617 | |||
Three Months Ended June 30, | |||||||
2021 | 2020 | ||||||
GAAP net income | $ | 23,180 | $ | 22,230 | |||
Adjustments: | |||||||
Long-lived asset impairment | 386 | 1,800 | |||||
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles | 3,386 | 4,489 | |||||
Merger & integration costs | 3,952 | 1,685 | |||||
Mark-to-market adjustment of stock-based compensation programs funded through Rabbi Trust Investments included in "General and administrative" costs | 1,123 | — | |||||
Mark-to-market adjustment of Rabbi Trust Investments included in "Total other income (expense), net" | (1,123 | ) | — | ||||
(Earnings) losses from equity method investee | 858 | — | |||||
Other (1) | (744 | ) | 430 | ||||
Tax effect of the adjustments | (1,837 | ) | (2,051 | ) | |||
Non-GAAP net income | $ | 29,181 | $ | 28,583 | |||
Three Months Ended June 30, | |||||||
2021 | 2020 | ||||||
GAAP net income (loss), per diluted share | $ | 0.58 | $ | 0.55 | |||
Adjustments: | |||||||
Long-lived asset impairment | 0.01 | 0.04 | |||||
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles | 0.09 | 0.11 | |||||
Merger & integration costs | 0.10 | 0.04 | |||||
Mark-to-market adjustment of stock-based compensation programs funded through Rabbi Trust Investments included in "General and administrative" costs | 0.03 | — | |||||
Mark-to-market adjustment of Rabbi Trust Investments included in "Total other income (expense), net" | (0.03 | ) | — | ||||
(Earnings) losses from equity method investee | 0.02 | — | |||||
Other (1) | (0.02 | ) | 0.02 | ||||
Tax effect of the adjustments | (0.05 | ) | (0.05 | ) | |||
Non-GAAP net income, per diluted share | $ | 0.73 | $ | 0.71 |
(1) Long-lived asset impairment costs of
Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information by Segment
(in thousands)
(Unaudited)
Exhibit 7
Americas | EMEA | Other (1) | |||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||
GAAP income (loss) from operations | $ | 47,275 | $ | 40,479 | $ | 4,593 | $ | 4,078 | $ | (22,147 | ) | $ | (17,344 | ) | |||||||||
Adjustments: | |||||||||||||||||||||||
Long-lived asset impairment | 386 | 1,800 | — | — | — | — | |||||||||||||||||
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles | 2,217 | 3,435 | 1,169 | 1,054 | — | — | |||||||||||||||||
Merger & integration costs | — | 1,459 | — | — | 3,952 | 226 | |||||||||||||||||
Mark-to-market adjustment of stock- based compensation programs funded through Rabbi Trust Investments | — | — | — | — | 1,123 | — | |||||||||||||||||
Other (2) | (1,603 | ) | 429 | 405 | — | 454 | 1 | ||||||||||||||||
Non-GAAP income (loss) from operations | $ | 48,275 | $ | 47,602 | $ | 6,167 | $ | 5,132 | $ | (16,618 | ) | $ | (17,117 | ) |
(1) Other includes corporate and other costs.
(2) Long-lived asset impairment costs of
Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(in thousands, except per share data)
(Unaudited)
Exhibit 8
Six Months Ended June 30, | |||||||
2021 | 2020 | ||||||
GAAP income from operations | $ | 61,251 | $ | 51,607 | |||
Adjustments: | |||||||
Long-lived asset impairment | 1,218 | 1,800 | |||||
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles | 6,807 | 9,028 | |||||
Merger & integration costs | 4,268 | 2,464 | |||||
Mark-to-market adjustment of stock-based compensation programs funded through Rabbi Trust Investments included in "General and administrative" costs | 1,647 | (2 | ) | ||||
Other (1) | (737 | ) | 485 | ||||
Non-GAAP income from operations | $ | 74,454 | $ | 65,382 | |||
Six Months Ended June 30, | |||||||
2021 | 2020 | ||||||
GAAP net income | $ | 48,158 | $ | 36,148 | |||
Adjustments: | |||||||
Long-lived asset impairment | 1,218 | 1,800 | |||||
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles | 6,807 | 9,028 | |||||
Merger & integration costs | 4,268 | 2,464 | |||||
Mark-to-market adjustment of stock-based compensation programs funded through Rabbi Trust Investments included in "General and administrative" costs | 1,647 | (2 | ) | ||||
Mark-to-market adjustment of Rabbi Trust Investments included in "Total other income (expense), net" | (1,648 | ) | — | ||||
(Earnings) losses from equity method investee | 1,533 | — | |||||
Other (1) | (737 | ) | 485 | ||||
Tax effect of the adjustments | (3,050 | ) | (3,337 | ) | |||
Non-GAAP net income | $ | 58,196 | $ | 46,586 | |||
Six Months Ended June 30, | |||||||
2021 | 2020 | ||||||
GAAP net income, per diluted share | $ | 1.21 | $ | 0.88 | |||
Adjustments: | |||||||
Long-lived asset impairment | 0.03 | 0.04 | |||||
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles | 0.17 | 0.22 | |||||
Merger & integration costs | 0.11 | 0.06 | |||||
Mark-to-market adjustment of stock-based compensation programs funded through Rabbi Trust Investments included in "General and administrative" costs | 0.04 | — | |||||
Mark-to-market adjustment of Rabbi Trust Investments included in "Total other income (expense), net" | (0.04 | ) | — | ||||
(Earnings) losses from equity method investee | 0.04 | — | |||||
Other (1) | (0.02 | ) | 0.02 | ||||
Tax effect of the adjustments | (0.08 | ) | (0.08 | ) | |||
Non-GAAP net income, per diluted share | $ | 1.46 | $ | 1.14 |
(1) Long-lived asset impairment costs of
Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information by Segment
(in thousands)
(Unaudited)
Exhibit 9
Americas | EMEA | Other (1) | |||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||
GAAP income (loss) from operations | $ | 92,147 | $ | 76,258 | $ | 11,261 | $ | 7,258 | $ | (42,157 | ) | $ | (31,909 | ) | |||||||||
Adjustments: | |||||||||||||||||||||||
Long-lived asset impairment | 743 | 1,800 | 475 | — | — | — | |||||||||||||||||
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles | 4,480 | 6,894 | 2,327 | 2,134 | — | — | |||||||||||||||||
Merger & integration costs | — | 2,011 | — | — | 4,268 | 453 | |||||||||||||||||
Mark-to-market adjustment of stock- based compensation programs funded through Rabbi Trust Investments | — | — | — | — | 1,647 | (2 | ) | ||||||||||||||||
Other (2) | (1,596 | ) | 429 | 405 | — | 454 | 56 | ||||||||||||||||
Non-GAAP income (loss) from operations | $ | 95,774 | $ | 87,392 | $ | 14,468 | $ | 9,392 | $ | (35,788 | ) | $ | (31,402 | ) |
(1) Other includes corporate and other costs.
(2) Long-lived asset impairment costs of
Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(Unaudited)
Exhibit 10
Three Months Ended June 30, | |||||||||
2021 | 2020 | ||||||||
GAAP tax rate | 22 | % | 22 | % | |||||
Adjustments: | |||||||||
Long-lived asset impairment | 0 | % | 0 | % | |||||
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles | 0 | % | 0 | % | |||||
Merger & integration costs | 0 | % | 1 | % | |||||
Mark-to-market adjustment of stock-based compensation programs funded through Rabbi Trust Investments included in "General and administrative" costs | 0 | % | 0 | % | |||||
Mark-to-market adjustment of Rabbi Trust Investments included in "Total other income (expense), net" | 0 | % | 0 | % | |||||
(Earnings) losses from equity method investee | 0 | % | 0 | % | |||||
Other | 0 | % | 0 | % | |||||
Non-GAAP tax rate | 22 | % | 23 | % | |||||
Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information by Segment
(Unaudited)
Exhibit 11
Three Months Ended June 30, 2021 vs. June 30, 2020 (2) | |||||||||||||||
Americas | EMEA | Other (3) | Consolidated | ||||||||||||
GAAP revenue growth | 5.1 | % | 19.2 | % | 100.0 | % | 7.7 | % | |||||||
Adjustments: | |||||||||||||||
Acquisition | -4.8 | % | 0.0 | % | 0.0 | % | -3.9 | % | |||||||
Foreign currency impact (1) | -1.7 | % | -11.4 | % | 0.0 | % | -3.5 | % | |||||||
Non-GAAP constant currency organic revenue growth | -1.4 | % | 7.8 | % | 100.0 | % | 0.3 | % |
(1) Foreign exchange fluctuations are calculated on a constant currency basis by translating the current period reported amounts using the prior period foreign exchange rate for each underlying currency.
(2) Represents the period-over-period growth rate.
(3) Other includes corporate and other costs.
FAQ
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