SYKES ENTERPRISES INC - FORM 8-K - March 7, 2012
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 7, 2012
Sykes Enterprises, Incorporated
(Exact name of registrant as specified in its charter)
| Florida |
0-28274 |
56-1383460 | ||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| 400 N. Ashley Drive, Suite 2800, Tampa, Florida |
33602 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (813) 274-1000
(Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operation and Financial Condition.
The Company issued a press release on Monday, February 27, 2012, announcing its results for the fourth quarter and full-year ended December 31, 2011, in which it provided certain non-GAAP financial data that reflected the effects of the elimination of the results of the discontinued operations, along with a reconciliation of the non-GAAP financial data, for the third quarter and fourth quarter of 2011. The Company also provided anticipated financial results for the first quarter of 2012 and full year 2012, and anticipates issuing guidance relating to the anticipated results for the second quarter of 2012 in the future.
In an effort to provide a basis for comparative financial analysis for the first and second quarters of 2012 compared to the same periods in 2011, the Company is providing the following historical non-GAAP financial data for the first quarter and second quarter of 2011, which reflect the same adjustments, along with the reconciliation of the non-GAAP financial data as required by Regulation G (in thousands, except per share data).
| Three Months | ||||||||
| March 31, 2011 |
June 30, 2011 |
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| (unaudited) | (unaudited) | |||||||
| Revenues |
$ | 299,450 | $ | 300,273 | ||||
| Direct salaries and related costs |
(194,091 | ) | (198,779 | ) | ||||
| General and administrative |
(88,577 | ) | (88,370 | ) | ||||
| Net gain (loss) on disposal of property and equipment |
(187 | ) | 3,611 | |||||
| Insurance settlement |
44 | — | ||||||
| Impairment of long-lived assets |
(726 | ) | — | |||||
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| Income from continuing operations |
15,913 | 16,735 | ||||||
| Total other income (expense), net |
(1,552 | ) | (356 | ) | ||||
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| Income from continuing operations before income taxes |
14,361 | 16,379 | ||||||
| Income taxes |
(572 | ) | (2,683 | ) | ||||
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| Income from continuing operations, net of taxes |
13,789 | 13,696 | ||||||
| (Loss) from discontinued operations, net of taxes |
(611 | ) | (1,725 | ) | ||||
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| Net income |
$ | 13,178 | $ | 11,971 | ||||
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| Net income (loss) per share: |
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| Basic: |
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| Continuing operations |
$ | 0.29 | $ | 0.30 | ||||
| Discontinued operations |
(0.01 | ) | (0.04 | ) | ||||
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| Net income (loss) per share |
$ | 0.28 | $ | 0.26 | ||||
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| Diluted: |
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| Continuing operations |
$ | 0.29 | $ | 0.30 | ||||
| Discontinued operations |
(0.01 | ) | (0.04 | ) | ||||
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| Net income (loss) per share |
$ | 0.28 | $ | 0.26 | ||||
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| Weighted average shares: |
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| Basic |
46,409 | 46,241 | ||||||
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| Diluted |
46,577 | 46,293 | ||||||
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2
| Three Months Ended March 31, 2011 (unaudited) |
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| Acquisition related Costs | ||||||||||||||||||||||||||||
| SYKES + ICT Reported |
ICT Severance & Consulting Engagement |
ICT Depreciation and Amortization of Property & Equipment and Intangibles Write-Ups |
Merger & Integration Costs |
EMEA Restructuring |
Other | SYKES + ICT Adjusted |
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| Revenues |
$ | 299,450 | $ | 299,450 | ||||||||||||||||||||||||
| Direct salaries and related costs |
(194,091 | ) | (194,091 | ) | ||||||||||||||||||||||||
| General and administrative |
(88,577 | ) | $ | 126 | $ | 3,058 | $ | 233 | (85,160 | ) | ||||||||||||||||||
| Net (loss) on disposal of property and equipment |
(187 | ) | (187 | ) | ||||||||||||||||||||||||
| Insurance settlement |
44 | $ | (44 | ) | 0 | |||||||||||||||||||||||
| Impairment of long-lived assets |
(726 | ) | 726 | 0 | ||||||||||||||||||||||||
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| Income from continuing operations |
15,913 | 126 | 3,058 | 233 | 0 | 682 | 20,012 | |||||||||||||||||||||
| Other income (expense), net |
(1,552 | ) | (1,552 | ) | ||||||||||||||||||||||||
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| Income from continuing operations before taxes |
14,361 | 126 | 3,058 | 233 | 0 | 682 | 18,460 | |||||||||||||||||||||
| Income taxes |
(572 | ) | (33 | ) | (800 | ) | (61 | ) | 0 | (178 | ) | (1,644 | ) | |||||||||||||||
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| Income from continuing operations, net of taxes |
$ | 13,789 | $ | 93 | $ | 2,258 | $ | 172 | $ | — | $ | 504 | $ | 16,816 | ||||||||||||||
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| Income from continuing operations, net of taxes per basic share |
$ | 0.29 | $ | 0.00 | $ | 0.05 | $ | — | $ | — | $ | 0.01 | $ | 0.35 | ||||||||||||||
| Shares outstanding, basic |
46,409 | 46,409 | 46,409 | 46,409 | 46,409 | 46,409 | 46,409 | |||||||||||||||||||||
| Income from continuing operations, net of taxes per diluted share |
$ | 0.29 | $ | 0.00 | $ | 0.05 | $ | — | $ | — | $ | 0.01 | $ | 0.35 | ||||||||||||||
| Shares outstanding, diluted |
46,577 | 46,577 | 46,577 | 46,577 | 46,577 | 46,577 | 46,577 | |||||||||||||||||||||
| Acquisition related Costs | ||||||||||||||||||||||||||||
| SYKES + ICT Reported |
ICT Severance & Consulting Engagement |
ICT Depreciation and Amortization of Property & Equipment and Intangibles Write-Ups |
Merger & Integration Costs |
EMEA Restructuring |
Other | SYKES + ICT Adjusted |
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| Revenues: |
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| Americas |
$ | 246,535 | $ | 246,535 | ||||||||||||||||||||||||
| EMEA |
52,915 | 52,915 | ||||||||||||||||||||||||||
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| Total |
$ | 299,450 | $ | — | $ | — | $ | 299,450 | ||||||||||||||||||||
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| Operating income: |
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| Americas |
$ | 27,708 | $ | 126 | $ | 3,058 | 220 | $ | 31,112 | |||||||||||||||||||
| EMEA |
1,067 | 1,067 | ||||||||||||||||||||||||||
| Corporate G&A expenses |
(12,180 | ) | 13 | (12,167 | ) | |||||||||||||||||||||||
| Insurance settlement |
44 | (44 | ) | — | ||||||||||||||||||||||||
| Impairment of long-lived assets |
(726 | ) | 726 | — | ||||||||||||||||||||||||
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| Income from continuing operations |
15,913 | 126 | 3,058 | 233 | 0 | 682 | 20,012 | |||||||||||||||||||||
| Other (expense), net |
(1,552 | ) | (1,552 | ) | ||||||||||||||||||||||||
| Income taxes |
(572 | ) | (33 | ) | (800 | ) | (61 | ) | 0 | (178 | ) | (1,644 | ) | |||||||||||||||
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| Income from continuing operations, net of taxes |
$ | 13,789 | $ | 93 | $ | 2,258 | $ | 172 | $ | — | $ | 504 | $ | 16,816 | ||||||||||||||
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(Remainder of page intentionally left blank.)
3
| Three Months Ended June 30, 2011 (unaudited) |
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| Acquisition related Costs | ||||||||||||||||||||||||||||
| SYKES + ICT Reported |
ICT Severance & Consulting Engagement |
ICT Depreciation and Amortization of Property & Equipment and Intangibles Write-Ups |
Merger & Integration Costs |
EMEA Restructuring |
Other | SYKES + ICT Adjusted |
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| Revenues |
$ | 300,273 | $ | 300,273 | ||||||||||||||||||||||||
| Direct salaries and related costs |
(198,779 | ) | (198,779 | ) | ||||||||||||||||||||||||
| General and administrative |
(88,370 | ) | $ | — | $ | 2,994 | $ | 386 | $ | 2,178 | (82,812 | ) | ||||||||||||||||
| Net gain (loss) on disposal of property and equipment |
3,611 | $ | (3,728 | ) | (117 | ) | ||||||||||||||||||||||
| Impairment of long-lived assets |
0 | |||||||||||||||||||||||||||
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| Income from continuing operations |
16,735 | 0 | 2,994 | 386 | 0 | (1,550 | ) | 18,565 | ||||||||||||||||||||
| Other income (expense), net |
(356 | ) | (356 | ) | ||||||||||||||||||||||||
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| Income from continuing operations before taxes |
16,379 | 0 | 2,994 | 386 | 0 | (1,550 | ) | 18,209 | ||||||||||||||||||||
| Income taxes |
(2,683 | ) | 0 | (686 | ) | (88 | ) | 0 | 354 | (3,103 | ) | |||||||||||||||||
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| Income from continuing operations, net of taxes |
$ | 13,696 | $ | — | $ | 2,308 | $ | 298 | $ | — | $ | (1,196 | ) | $ | 15,106 | |||||||||||||
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| Income from continuing operations, net of taxes per basic share |
$ | 0.30 | $ | — | $ | 0.05 | $ | 0.01 | $ | — | $ | (0.03 | ) | $ | 0.33 | |||||||||||||
| Shares outstanding, basic |
46,241 | 46,241 | 46,241 | 46,241 | 46,241 | 46,241 | 46,241 | |||||||||||||||||||||
| Income from continuing operations, net of taxes per diluted share |
$ | 0.30 | $ | — | $ | 0.05 | $ | 0.01 | $ | — | $ | (0.03 | ) | $ | 0.33 | |||||||||||||
| Shares outstanding, diluted |
46,293 | 46,293 | 46,293 | 46,293 | 46,293 | 46,293 | 46,293 | |||||||||||||||||||||
| Acquisition related Costs | ||||||||||||||||||||||||||||
| SYKES + ICT Reported |
ICT Severance & Consulting Engagement |
ICT Depreciation and Amortization of Property & Equipment and Intangibles Write-Ups |
Merger & Integration Costs |
EMEA Restructuring |
Other | SYKES + ICT Adjusted |
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| Revenues: |
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| Americas |
$ | 247,543 | $ | 247,543 | ||||||||||||||||||||||||
| EMEA |
52,730 | 52,730 | ||||||||||||||||||||||||||
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| Total |
$ | 300,273 | $ | — | $ | — | $ | 300,273 | ||||||||||||||||||||
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| Operating income: |
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| Americas |
$ | 27,767 | $ | — | $ | 2,994 | 30 | $ | 30,791 | |||||||||||||||||||
| EMEA |
(1,791 | ) | 0 | 356 | (1,435 | ) | ||||||||||||||||||||||
| Corporate G&A expenses |
(12,852 | ) | 2,178 | (10,674 | ) | |||||||||||||||||||||||
| Net gain (loss) on disposal of property and equipment |
3,611 | (3,728 | ) | (117 | ) | |||||||||||||||||||||||
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| Income from continuing operations |
16,735 | 0 | 2,994 | 386 | 0 | (1,550 | ) | 18,565 | ||||||||||||||||||||
| Other (expense), net |
(356 | ) | (356 | ) | ||||||||||||||||||||||||
| Income taxes |
(2,683 | ) | 0 | (686 | ) | (88 | ) | 0 | 354 | (3,103 | ) | |||||||||||||||||
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| Income from continuing operations, net of taxes |
$ | 13,696 | $ | — | $ | 2,308 | $ | 298 | $ | — | $ | (1,196 | ) | $ | 15,106 | |||||||||||||
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4
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| SYKES ENTERPRISES INCORPORATED | ||
| By: | /s/ W. Michael Kipphut | |
| Executive Vice President and Chief Financial Officer | ||
Date: March 7, 2012
5
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