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Sykes Enterprises Inc. (SYKE) filed Quarterly Report for the period ended 2011-06-30.
Sykes Enterprises Inc. has a market cap of $734.5 million; its shares were traded at around $15.88 with a P/E ratio of 12.8 and P/S ratio of 0.6. Sykes Enterprises Inc. had an annual average earning growth of 9% over the past 5 years.
This is the annual revenues and earnings per share of SYKE over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of SYKE.
Highlight of Business Operations:
EMEA’s revenues increased $2.1 million, excluding the positive foreign currency impact of $7.1 million, for the three months ended June 30, 2011 from the comparable period in 2010, due largely to new client programs and higher volumes within certain existing clients. This $2.1 million increase reflects a $0.4 million decrease in revenues due to the closure of certain sites in connection with the Fourth Quarter 2010 Exit Plan (See Note 4, Costs Associated with Exit or Disposal Activities, of “Notes to Condensed Consolidated Financial Statements”).
On a reporting segment basis, general and administrative expenses from the Americas segment decreased $4.1 million, excluding the negative foreign currency exchange impact of $1.9 million, for the three months ended June 30, 2011 from the comparable period in 2010. General and administrative expenses from the EMEA segment decreased $0.4 million, excluding the negative foreign currency exchange impact of $1.8 million, for the three months ended June 30, 2011 from the comparable period in 2010. Corporate general and administrative expenses increased $0.8 million for the three months ended June 30, 2011 from the comparable period in 2010. This increase of $0.8 million was primarily attributable to higher charitable contributions of $1.1 million, higher compensation costs of $0.6 million, higher legal and professional fees of $0.4 million and higher consulting costs of $0.2 million, partially offset by lower merger and acquisition costs of $1.3 million and lower other costs of $0.2 million.
Other income (expense), net, was $(0.3) million for the three months ended June 30, 2011, compared to $(3.6) million in the same period in 2010. The net decrease of $3.3 million was primarily attributable to an increase of $3.9 million in realized and unrealized foreign currency transaction gains, net of losses, and an increase of $0.5 million in other miscellaneous income, net, partially offset by an increase of $1.1 million in forward currency contract losses (which were not designated as hedging instruments). Other income (expense) excludes the cumulative translation effects and unrealized gains (losses) on financial derivatives that are included in “Accumulated other comprehensive income” in shareholders’ equity in the accompanying Condensed Consolidated Balance Sheets.
As a result of the foregoing, we reported income from continuing operations for the three months ended June 30, 2011 of $15.1 million, an increase of $5.3 million from the comparable period in 2010. This increase was principally attributable to a $21.4 million increase in revenues and an increase in the net gain on disposal of property and equipment of $3.5 million, partially offset by a $19.6 million increase in direct salaries and related costs. In addition to the $5.3 million increase in income from continuing operations, we experienced a decrease in interest expense of $1.1 million, a $3.3 million decrease in other income (expense), net, and a decrease of $1.4 million of loss from discontinued operations, partially offset by an increase of $1.7 million in income taxes, resulting in net income of $12.0 million for the three months ended June 30, 2011, an increase of $9.4 million compared to the same period in 2010.
America’s revenues increased $43.2 million, excluding the positive foreign currency impact of $8.7 million, for the six months ended June 30, 2011 from the comparable period in 2010, principally due to acquisition revenues of $35.9 million and $7.3 million of new client programs and higher volumes within certain existing clients. Revenues from our offshore operations represented 46.7% of Americas’ revenues, compared to 48.0% for the same period in 2010. While operating margins generated offshore are generally comparable to those in the United States, our ability to maintain these offshore operating margins longer term is difficult to predict due to potential increased competition for the available workforce, the trend of higher occupancy costs and costs of functional currency fluctuations in offshore markets. We weight these factors in our focus to re-price or replace certain sub-profitable target client programs.
On a reporting segment basis, general and administrative expenses from the Americas segment increased $3.8 million, excluding the negative foreign currency exchange impact of $3.7 million, for the six months ended June 30, 2011 from the comparable period in 2010. General and administrative expenses from the EMEA segment decreased $0.5 million, excluding the negative foreign currency exchange impact of $2.0 million, for the six months ended June 30, 2011 from the comparable period in 2010. Corporate general and administrative expenses decreased $18.7 million for the six months ended June 30, 2011 from the comparable period in 2010. This decrease of $18.7 million was primarily attributable to lower merger and acquisition costs of $21.5 million, partially offset by higher charitable contributions of $1.1 million, higher compensation costs of $0.9 million, higher legal and professional fees of $0.5 million and higher software maintenance of $0.3 million.
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