8-K

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

 

LOGO

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
 
     (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     —     
  

 

 

   

 

 

 

Income from continuing operations

     15,913        16,735   

Total other income (expense), net

     (1,552     (356
  

 

 

   

 

 

 

Income from continuing operations before income taxes

     14,361        16,379   

Income taxes

     (572     (2,683
  

 

 

   

 

 

 

Income from continuing operations, net of taxes

     13,789        13,696   

(Loss) from discontinued operations, net of taxes

     (611     (1,725
  

 

 

   

 

 

 

Net income

   $ 13,178      $ 11,971   
  

 

 

   

 

 

 

Net income (loss) per share:

    

Basic:

    

Continuing operations

   $ 0.29      $ 0.30   

Discontinued operations

     (0.01     (0.04
  

 

 

   

 

 

 

Net income (loss) per share

   $ 0.28      $ 0.26   
  

 

 

   

 

 

 

Diluted:

    

Continuing operations

   $ 0.29      $ 0.30   

Discontinued operations

     (0.01     (0.04
  

 

 

   

 

 

 

Net income (loss) per share

   $ 0.28      $ 0.26   
  

 

 

   

 

 

 

Weighted average shares:

    

Basic

     46,409        46,241   
  

 

 

   

 

 

 

Diluted

     46,577        46,293   
  

 

 

   

 

 

 

 

2


    

Three Months Ended

March 31, 2011

(unaudited)

 
               
           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
 

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   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income from continuing operations

     15,913        126        3,058        233        0         682        20,012   

Other income (expense), net

     (1,552                (1,552
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

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
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income from continuing operations, net of taxes

   $ 13,789      $ 93      $ 2,258      $ 172      $       $ 504      $ 16,816   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

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
 

Revenues:

               

Americas

   $ 246,535                 $ 246,535   

EMEA

     52,915                   52,915   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 299,450        $      $           $ 299,450   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Operating income:

               

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        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

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
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income from continuing operations, net of taxes

   $ 13,789      $ 93      $ 2,258      $ 172      $       $ 504      $ 16,816   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

(Remainder of page intentionally left blank.)

 

3


    

Three Months Ended

June 30, 2011

(unaudited)

 
                
           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
 

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   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income from continuing operations

     16,735        0         2,994        386        0         (1,550     18,565   

Other income (expense), net

     (356                 (356
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

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
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income from continuing operations, net of taxes

   $ 13,696      $       $ 2,308      $ 298      $       $ (1,196   $ 15,106   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

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
 

Revenues:

                

Americas

   $ 247,543                  $ 247,543   

EMEA

     52,730                    52,730   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 300,273         $      $           $ 300,273   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Operating income:

                

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
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

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
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income from continuing operations, net of taxes

   $ 13,696      $       $ 2,308      $ 298      $       $ (1,196   $ 15,106   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

(Remainder of page intentionally left blank.)

 

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