Home Business Wire Startek Reports Second Quarter 2023 Financial Results

Startek Reports Second Quarter 2023 Financial Results

– Reduced Outstanding Debt by Nearly 60% Over Last Six Months

– Sustained Margins Despite Lower Revenue

DENVER–(BUSINESS WIRE)–Startek, Inc. (NYSE:SRT) (“Startek” or the “Company”), a global customer experience (CX) solutions provider, is reporting financial results for the second quarter ended June 30, 2023. As a result of current and planned divestitures, the Company has classified Middle East and Argentina operations as ‘Held for Sale and Discontinued Operations’. Accordingly net revenue, gross profit, gross margin, SG&A expenses and adjusted EBITDA are reported for the continuing operations and net income, EPS, adjusted net income/(loss) and adjusted EPS are reported after consolidating continuing and discontinued operations.


Second Quarter 2023 Financial Summary ($ in millions, excl. margin items)

 

 

Q2 2023

 

 

Q2 2022

 

 

Change

 

Revenue

 

 

91.20

 

 

 

96.15

 

 

 

(5.15)%

 

Gross Profit

 

 

11.66

 

 

 

11.03

 

 

 

5.71%

 

Gross Margin

 

 

12.79%

 

 

 

11.47%

 

 

132bps

 

SG&A Expenses

 

 

10.80

 

 

 

9.85

 

 

 

9.64%

 

Adjusted EBITDA [3]

 

 

7.65

 

 

 

7.85

 

 

 

(2.55)%

 

Net Income (Loss) [1]

 

 

6.54

 

 

 

1.87

 

 

 

249.73%

 

EPS[1]

 

 

0.16

 

 

 

0.05

 

 

 

220%

 

Adjusted Net Income [2], [3]

 

 

1.46

 

 

 

6.33

 

 

 

(76.94)%

 

Adjusted EPS[2], [3]

 

 

0.04

 

 

 

0.15

 

 

 

(73.33)%

 

[1] Reflects net income (loss) and EPS attributable to Startek shareholders.

[2] Reflects Adjusted net income and adjusted EPS attributable to Startek shareholders.

[3] Refer to the reconciliation of GAAP to Non-GAAP financial measures.

Management Commentary

“The second quarter marked continued progress as we ramped up new client wins from the start of the year, while continuing to expand our margin profile and significantly de-lever our balance sheet,” said Bharat Rao, Global CEO of Startek. “While volatility within the broader economic environment has impacted decision-making and elongated sales cycles, our near-shore and offshore capabilities proved to be an attractive and cost-effective offering, particularly in the U.S. where we saw continued expansion. We also unveiled our new visual identity to mark the start of our next chapter as a unified brand across the globe. This is a culmination of all the tireless efforts our organization has made to strategically position the Company for the future, and we’ve been very pleased with the initial response to our new branding.

“As we move into the back-half of the year, we remain highly focused on capturing cost efficiencies from the consolidation efforts we’ve made across our digital and sales teams. Despite the difficult macro conditions, our sales team remains hard at work expanding our pipeline and developing relationships that we can capitalize on over the long-term. Our near-shore and offshore offerings have the ability to provide significant cost savings for our clients, so we’ve been making a strong marketing push to ensure Startek is under consideration when companies are evaluating their customer experience needs. We are also continuing to invest in our technology and are actively pursuing partnerships that can bolster our service offerings and better leverage cutting edge technology like artificial intelligence and automation.

“Overall, I’m very pleased with the position Startek is in today. Our mission is to offer a best-in-class customer experience to our clients. We remain committed to keeping this idea at the forefront of everything we do and ensuring we remain relevant with our technology offerings. With much of the noise from our strategic events now behind us, we look forward to directing our core focus on expanding our reach, growing our client count and delivering profitable growth to our shareholders.”

Second Quarter 2023 Financial Summary

Net Revenue in the second quarter was $91.20 million compared to $96.15 million in the year-ago quarter. The decrease was primarily due to volume declines across most of the Company’s international footprint, partially offset by an increase in the Americas region with the addition of new clients and increased momentum with existing clients. On a constant currency basis, Revenue decreased 1.35% compared to the year-ago quarter.

Gross profit in the second quarter increased by 5.71% to $11.66 million compared to $11.03 million in the year-ago quarter. Gross margin improved 132 basis points to 12.79% compared to 11.47% in the year-ago quarter. The improvement in gross profit and gross margin is primarily attributable to lower employee costs resulting from a higher portion of service delivered near-shore and offshore, along with proactive pricing adjustments to account for the inflationary environment.

Selling, general and administrative (SG&A) expenses in the second quarter increased to $10.80 million compared to $9.85 million in the year-ago quarter. As a percentage of revenue, SG&A increased to 11.84% compared to 10.24% in the year-ago quarter. The increase is primarily due to the aforementioned lower revenue base, along with investments in sales and marketing and an increase in travel costs.

Adjusted EBITDA* in the second quarter was $7.65 million compared to $7.85 million in the year-ago quarter. The decrease is primarily attributable to the aforementioned decline in net revenue, as well as currency exchange losses during the period.

Net income (loss) attributable to Startek shareholders in the second quarter was $6.54 million or $0.16 per share, compared to a net income of $1.87 million or $0.05 per share in the year-ago quarter. This represents income (loss) attributable to Startek shareholders from continuing operations of $(0.03) million in Q2 2023 and $2.45 million in Q2 2022, along with income (loss) attributable to Startek shareholders from discontinued operations of $6.57 million in Q2 2023 and $(0.58) million in Q2 2022.

Adjusted net income* in the second quarter was $1.46 million or $0.04 per diluted share, compared to an adjusted net income* of $6.33 million or $0.15 per diluted share in the year-ago quarter. This represents adjusted net income (loss) from continuing operations of $1.46 million in Q2 2023 and $6.24 million in Q2 2022, along with adjusted net income (loss) from discontinued operations of $0 million in Q2 2023 and $0.09 million in Q2 2022.

On June 30, 2023, cash and restricted cash was $39.06 million[1] compared to $72.40 million as at December 31, 2022. The decrease in cash balance was driven by the utilization of $41 million in proceeds received from the Company’s divesture in CSS, to prepay debt. Total debt as at June 30, 2023, was $78.50 million compared to $175.91 million as at December 31, 2022, and net debt as at June 30, 2023, was $39.44 million[2] compared to $103.51 million as at December 31, 2022.

On April 24, 2023, the Board of Directors approved an authorization to repurchase up to $20 million of the Company’s common stock from time to time in accordance with the requirements of the Securities and Exchange Commission. During the three months ended June 30, 2023, the Company repurchased 51,979 shares at an average cost of $2.98 per share.

*A non-GAAP measure defined below.

Conference Call and Webcast Details

Startek management will host the call, followed by a question-and-answer period.

Date: Thursday, August 10, 2023

Time: 5 p.m. ET

Toll-free dial-in number: 1-888-999-3182

International dial-in number: 1-848-280-6330

Conference ID: 11152939

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group, Inc. at 1-949-574-3860.

The conference call will be broadcast live and available for replay here, as well as in the investor relations section of the company’s website at www.startek.com. A telephonic replay of the conference call will also be available after 8 p.m. ET on the same day through August 17, 2023.

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 11152939

__________________________

[1] Cash balance excluding restricted cash as at June 30, 2023 amounted to $34.91 million as compared to $15.8 million on March 31, 2023.

[2] Net debt excluding restricted cash balance at June 30, 2023 was $43.59 million compared to $114.90 million on March 31, 2023.

About Startek

Startek is a leading global provider of technology-enabled customer experience (CX) solutions. The Company provides omnichannel CX, digital transformation, and technology services to some of the world’s leading brands. Startek is committed to impacting clients’ business outcomes by focusing on enhancing CX and digital enablement across all touch points and channels. Startek has more than 32,000 employees delivering services in 11 countries. The Company services over 145 clients across a range of industries such as banking and financial services, insurance, technology, telecoms, healthcare, travel and hospitality, consumer goods, retail and energy and utilities. To learn more, visit www.startek.com.

Forward-Looking Statements

The matters regarding the future discussed in this news release include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are intended to be identified in this document by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should” and similar expressions. As described below, such statements are subject to a number of risks and uncertainties that could cause Startek’s actual results to differ materially from those expressed or implied by any such forward-looking statements. Readers are encouraged to review risk factors and all other disclosures appearing in the Company’s Form 10-K for the fiscal year ended December 31, 2022, as filed with the Securities and Exchange Commission (SEC) on March 28, 2023, as well as other filings with the SEC, for further information on risks and uncertainties that could affect Startek’s business, financial condition and results of operation. Copies of these filings are available from the SEC, the Company’s website or the Company’s investor relations department. Startek assumes no obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date herein.

 

 

STARTEK, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(In thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

91,197

 

 

 

96,147

 

 

 

183,286

 

 

 

197,239

 

Cost of services

 

 

(79,534

)

 

 

(85,113

)

 

 

(158,641

)

 

 

(172,416

)

Gross profit

 

 

11,663

 

 

 

11,034

 

 

 

24,645

 

 

 

24,823

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

(10,798

)

 

 

(9,848

)

 

 

(21,107

)

 

 

(21,809

)

Impairment (losses)/ reversals and restructuring/exit cost

 

 

442

 

 

 

(78

)

 

 

125

 

 

 

(73

)

Operating income (loss)

 

 

1,307

 

 

 

1,108

 

 

 

3,663

 

 

 

2,941

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share of income (loss) of equity accounted investee

 

 

 

 

 

3,833

 

 

 

 

 

 

3,825

 

Interest expense and other income (expense), net

 

 

(1,582

)

 

 

(1,315

)

 

 

(3,659

)

 

 

(3,045

)

Foreign exchange gains (losses), net

 

 

345

 

 

 

124

 

 

 

417

 

 

 

(100

)

Income (loss) from continuing operations before tax expenses

 

 

70

 

 

 

3,750

 

 

 

421

 

 

 

3,621

 

Tax expenses

 

 

(101

)

 

 

(1,303

)

 

 

(1,010

)

 

 

(1,941

)

Income (loss) from continuing operations, net of tax (A)

 

 

(31

)

 

 

2,447

 

 

 

(589

)

 

 

1,680

 

Income (loss) before income tax expenses from discontinued operations

 

 

(910

)

 

 

301

 

 

 

2,751

 

 

 

2,809

 

Pre-tax gain on disposal

 

 

11,666

 

 

 

 

 

 

11,666

 

 

 

 

Tax expenses of discontinued operations

 

 

(4,190

)

 

 

(120

)

 

 

(5,374

)

 

 

(1,575

)

Income (loss) from discontinued operations, net of tax (B)

 

 

6,566

 

 

 

181

 

 

 

9,043

 

 

 

1,234

 

Net income (loss) (A+B)

 

 

6,535

 

 

 

2,628

 

 

 

8,454

 

 

 

2,914

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations (A)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) attributable to Startek shareholders

 

 

(31

)

 

 

2,447

 

 

 

(589

)

 

 

1,680

 

 

 

 

(31

)

 

 

2,447

 

 

 

(589

)

 

 

1,680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations (B)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) attributable to noncontrolling interests

 

 

 

 

 

761

 

 

 

2,589

 

 

 

2,290

 

Income (loss) attributable to Startek shareholders

 

 

6,566

 

 

 

(580

)

 

 

6,454

 

 

 

(1,056

)

 

 

 

6,566

 

 

 

181

 

 

 

9,043

 

 

 

1,234

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) (A+B)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to noncontrolling interests

 

 

 

 

 

761

 

 

 

2,589

 

 

 

2,290

 

Net income (loss) attributable to Startek shareholders

 

 

6,535

 

 

 

1,867

 

 

 

5,865

 

 

 

624

 

 

 

 

6,535

 

 

 

2,628

 

 

 

8,454

 

 

 

2,914

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share from continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) attributable to Startek shareholders

 

 

(0.00

)

 

 

0.06

 

 

 

(0.01

)

 

 

0.04

 

Diluted net income (loss) attributable to Startek shareholders

 

 

(0.00

)

 

 

0.06

 

 

 

(0.01

)

 

 

0.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) attributable to Startek shareholders

 

 

0.16

 

 

 

(0.01

)

 

 

0.16

 

 

 

(0.02

)

Diluted net income (loss) attributable to Startek shareholders

 

 

0.16

 

 

 

(0.01

)

 

 

0.16

 

 

 

(0.02

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share from continuing and discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) attributable to Startek shareholders

 

 

0.16

 

 

 

0.05

 

 

 

0.15

 

 

 

0.02

 

Diluted net income (loss) attributable to Startek shareholders

 

 

0.16

 

 

 

0.05

 

 

 

0.15

 

 

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

40,316

 

 

 

40,284

 

 

 

40,302

 

 

 

40,311

 

Diluted

 

 

40,318

 

 

 

40,308

 

 

 

40,314

 

 

 

40,366

 

 

STARTEK, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net income (loss) (A+B)

 

 

6,535

 

 

 

2,628

 

 

 

8,454

 

 

 

2,914

 

Net income (loss) attributable to noncontrolling interests

 

 

 

 

 

761

 

 

 

2,589

 

 

 

2,290

 

Net income (loss) attributable to Startek shareholders

 

 

6,535

 

 

 

1,867

 

 

 

5,865

 

 

 

624

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of taxes from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(2,401

)

 

 

(3,934

)

 

 

(2,525

)

 

 

(3,388

)

Pension amortization

 

 

 

 

 

(64

)

 

 

124

 

 

 

 

Other comprehensive income (loss) from continuing operations

 

 

(2,401

)

 

 

(3,998

)

 

 

(2,401

)

 

 

(3,388

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of taxes from discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(50

)

 

 

(3

)

 

 

(50

)

 

 

(1

)

Pension amortization

 

 

3,062

 

 

 

515

 

 

 

4,187

 

 

 

(686

)

Other comprehensive income (loss) from discontinuing operations

 

 

3,012

 

 

 

512

 

 

 

4,137

 

 

 

(687

)

Other comprehensive income (loss) from continuing and discontinuing operations

 

 

611

 

 

 

(3,486

)

 

 

1,736

 

 

 

(4,075

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of taxes from continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to Startek shareholders

 

 

(2,401

)

 

 

(3,998

)

 

 

(2,401

)

 

 

(3,388

)

 

 

 

(2,401

)

 

 

(3,998

)

 

(2,401

)

 

 

(3,388

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of taxes from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to noncontrolling interests

 

 

 

 

 

281

 

 

 

614

 

 

 

(374

)

Attributable to Startek shareholders

 

 

3,012

 

 

 

231

 

 

 

3,523

 

 

 

(314

)

 

 

 

3,012

 

 

 

512

 

 

4,137

 

 

 

(687

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss) from continuing and discontinuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to noncontrolling interests

 

 

 

 

 

1,042

 

 

 

3,203

 

 

 

1,916

 

Attributable to Startek shareholders

 

 

7,146

 

 

 

(1,899

)

 

 

6,987

 

 

 

(3,077

)

 

 

 

7,146

 

 

 

(857

)

 

10,190

 

 

 

(1,161

)

 

STARTEK, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

 

 

 

June 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

34,908

 

 

 

22,457

 

Restricted cash

 

 

4,151

 

 

 

49,946

 

Trade accounts receivables, net

 

 

38,243

 

 

 

47,138

 

Unbilled revenue

 

 

30,801

 

 

 

24,207

 

Prepaid expenses and other current assets

 

 

15,819

 

 

 

9,159

 

Assets classified as held for sale

 

 

8,416

 

 

 

202,831

 

Total current assets

 

 

132,338

 

 

 

355,738

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

28,200

 

 

 

22,945

 

Operating lease right-of-use assets

 

 

37,591

 

 

 

36,450

 

Intangible assets, net

 

 

74,602

 

 

 

79,745

 

Goodwill

 

 

120,505

 

 

 

120,505

 

Deferred tax assets, net

 

 

2,724

 

 

 

2,771

 

Prepaid expenses and other non-current assets

 

 

8,826

 

 

 

7,889

 

Total non-current assets

 

 

272,448

 

 

 

270,305

 

Total assets

 

 

404,786

 

 

 

626,043

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Trade accounts payables

 

 

7,852

 

 

 

2,428

 

Accrued expenses

 

 

31,413

 

 

 

29,707

 

Short term debt

 

 

11,089

 

 

 

14,267

 

Current maturity of long term debt

 

 

6,564

 

 

 

120,466

 

Current maturity of operating lease liabilities

 

 

14,951

 

 

 

14,492

 

Other current liabilities

 

 

24,260

 

 

 

17,615

 

Liabilities classified as held for sale

 

 

7,341

 

 

 

89,486

 

Total current liabilities

 

 

103,470

 

 

 

288,461

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

Long term debt

 

 

60,848

 

 

 

41,175

 

Operating lease liabilities

 

 

26,464

 

 

 

26,651

 

Other non-current liabilities

 

 

3,292

 

 

 

2,682

 

Deferred tax liabilities, net

 

 

15,412

 

 

 

15,508

 

Total non-current liabilities

 

 

106,016

 

 

 

86,016

 

Total liabilities

 

 

209,486

 

 

 

374,477

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Common stock, 60,000,000 non-convertible shares, $0.01 par value, authorized; 41,168,618 and 41,098,456 shares issued as of June 30, 2023 and December 31, 2022 respectively.

 

 

412

 

 

 

411

 

Additional paid-in capital

 

 

294,266

 

 

 

293,472

 

Accumulated deficit

 

 

(80,538

)

 

 

(86,302

)

Treasury stock, 891,193 and 839,214 shares as of June 30, 2023 and December 31, 2022 respectively, at cost

 

 

(3,904

)

 

 

(3,749

)

Accumulated other comprehensive loss

 

 

(14,936

)

 

 

(16,058

)

Equity attributable to Startek shareholders

 

 

195,300

 

 

 

187,774

 

Non-controlling interest

 

 

 

 

 

63,792

 

Total stockholders’ equity

 

 

195,300

 

 

 

251,566

 

Total liabilities and stockholders’ equity

 

 

404,786

 

 

 

626,043

 

 

STARTEK, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

Operating activities

 

 

 

 

 

 

 

 

Income from continuing and discontinued operations

 

 

8,454

 

 

 

2,914

 

less: Income (loss) from discontinued operations, net of tax

 

 

9,043

 

 

 

1,234

 

Income (loss) from continuing operations, net of tax

 

 

(589

)

 

 

1,680

 

 

 

 

 

 

 

 

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

10,535

 

 

 

11,043

 

Profit on sale of property, plant and equipment

 

 

(12

)

 

 

(80

)

Provision/(reversal) for doubtful accounts

 

 

(412

)

 

 

(125

)

Amortization of debt issuance costs (including loss on extinguishment of debt)

 

 

80

 

 

 

286

 

Amortization of call option premium

 

 

 

 

 

720

 

Mark to market gain on derivative instrument

 

 

(356

)

 

 

 

Share-based compensation expense

 

 

769

 

 

 

833

 

Deferred income taxes

 

 

33

 

 

 

(612

)

Share of income of equity accounted investee

 

 

 

 

 

(3,825

)

 

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Trade accounts receivables (including unbilled revenue)

 

 

1,024

 

 

 

6,127

 

Prepaid expenses and other assets

 

 

(5,597

)

 

 

(5,522

)

Trade accounts payable

 

 

5,491

 

 

 

1,473

 

Income taxes, net

 

 

(2,689

)

 

 

576

 

Accrued expenses and other liabilities

 

 

9

 

 

 

(3,202

)

Net cash generated from by operating activities from continuing operations

 

 

8,286

 

 

 

9,372

 

Net cash generated from/used in operating activities from discontinued operations

 

 

(7,795

)

 

 

278

 

Net cash generated from operating activities

 

 

491

 

 

 

9,650

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment and intangible assets, net

 

 

(7,630

)

 

 

(5,303

)

Proceeds from sale of discontinued operations, net of cash disposed

 

 

34,890

 

 

 

 

Net cash generated from/used in investing activities from continuing operations

 

 

27,260

 

 

 

(5,303

)

Net cash generated from/used in investing activities from discontinued operations

 

 

(3,570

)

 

 

(1,832

)

Net cash generated from/used in investing activities

 

 

23,690

 

 

 

(7,135

)

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

Proceeds from the issuance of common stock

 

 

25

 

 

 

246

 

Payments of long term debt

 

 

(93,466

)

 

 

 

(Payment)/ Proceed from a line of credit, net

 

 

(3,218

)

 

 

1,423

 

Payments of other borrowings, net

 

 

(842

)

 

 

(1,077

)

Common stock repurchases

 

 

(155

)

 

 

(1,334

)

Net cash generated from/used in financing activities from continuing operations

 

 

(97,656

)

 

 

(742

)

Net cash generated from/used in financing activities from discontinued operations

 

 

(303

)

 

 

108

 

Net cash generated from/used in financing activities

 

 

(97,959

)

 

 

(634

)

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

(73,778

)

 

 

1,881

 

Effect of exchange rate changes on cash and cash equivalents and restricted cash

 

 

(1,151

)

 

 

(1,486

)

Cash and cash equivalents and restricted cash at beginning of period

 

 

115,146

 

 

 

55,396

 

Cash and cash equivalents and restricted cash at end of period

 

 

40,217

 

 

 

55,791

 

Less: Cash and cash equivalents from discontinued operations

 

 

(1,158

)

 

 

(22,475

)

Cash and cash equivalents and restricted cash of continuing operations at end of period

 

 

39,059

 

 

 

33,315

 

 

 

 

 

 

 

 

 

 

Components of cash and cash equivalents and restricted cash

 

 

 

 

 

 

 

 

Balances with banks

 

 

34,908

 

 

 

30,292

 

Restricted cash

 

 

4,151

 

 

 

3,023

 

Total cash and cash equivalents and restricted cash

 

 

39,059

 

 

 

33,315

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information

 

 

 

 

 

 

 

 

Cash paid for interest and other finance cost

 

 

6,225

 

 

 

4,368

 

Cash paid for income taxes

 

 

(3,661

)

 

 

2,168

 

Supplemental disclosure of non-cash activities

 

 

 

 

 

 

 

 

Non-cash share-based compensation expenses

 

 

769

 

 

 

833

 

STARTEK, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURE

(In thousands)

(Unaudited)

This press release contains references to the non-GAAP financial measure of Adjusted EBITDA. Reconciliation of this non-GAAP measure to its comparable GAAP measure is included below. This non-GAAP information should not be construed as an alternative to the reported results determined in accordance with GAAP. It is provided solely to assist in an investor’s understanding of these items on the comparability of the Company’s operations.

Adjusted EBITDA:

The Company defines non-GAAP Adjusted EBITDA as Net income (loss) plus Income tax expense, Share of income (loss) of equity-accounted investees, Interest expense and other income (expense), net, Depreciation and amortization expense, Impairment losses and restructuring cost, Share-based compensation expense, Foreign exchange gains (losses), net, Private offer transaction costs, Transaction related costs, CSS option amortization and other non-recurring costs (if applicable).

Contacts

Investor Relations
Cody Cree

Gateway Group, Inc.

(949) 574-3860

SRT@gateway-grp.com

Media Relations
Neha Iyer

Startek

neha.iyer@startek.com

Read full story here

Se questo articolo ti è piaciuto e vuoi rimanere sempre informato sulle novità tecnologiche
css.php