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Sykes Enterprises, Incorporated Reports Fourth-Quarter And Full-Year 2012 Financial Results

  • Higher Capacity Utilization Drives Earnings Per Share Relative to the November 2012 Business Outlook
  • EMEA's Operating Margin Expands Further in the Fourth Quarter
  • Net Cash Provided by Operating Activities Increases Double-Digit Comparably
  • 2012 Capacity Rationalization Goal Achieved
  • Initiating First-Quarter and Full-Year 2013 Business Outlook

TAMPA, Fla., Feb. 25, 2013 (GLOBE NEWSWIRE) -- Sykes Enterprises, Incorporated ("SYKES" or the "Company") (Nasdaq:SYKE), a global leader in providing comprehensive outsourced customer contact management solutions and services in the business process outsourcing (BPO) arena, announced today its financial results for the fourth quarter and full year ended December 31, 2012.

Fourth Quarter 2012 Financial Highlights
  • Fourth quarter 2012 revenues from continuing operations of $304.3 million increased $28.1 million, or 10.2%, from $276.2 million in the comparable quarter last year; fourth quarter 2012 revenues included $30.5 million in revenue contribution from the Alpine Access acquisition, which closed August 20, 2012; excluding the revenue contribution from Alpine Access and on a constant currency basis, fourth quarter 2012 comparable revenues decreased 2.3% as demand from certain clients within the communications, financial services and travel verticals was more than offset by end-of-life client programs and the effect of strategic actions (the previously announced and planned exit from Ireland and South Africa and capacity rationalization in Amsterdam, as well as capacity rationalization related to the integration of the ICT acquisition), revenues from both of which were included in the year-ago quarter  
  • Fourth quarter 2012 operating margin from continuing operations on a GAAP basis was 5.2% versus 3.9% in the comparable quarter last year; on a non-GAAP basis (see section titled "Non-GAAP Financial Measures" for an explanation and see Exhibit 6 for reconciliation), fourth quarter 2012 operating margin was 7.0% versus 7.2% in the same period last year as benefits in the current quarter from higher revenues, higher capacity utilization and the EMEA turnaround were more than offset by client program ramp expenses and investments in facilities for future demand  
  • Fourth quarter 2012 diluted earnings per share from continuing operations on a GAAP basis were $0.31 versus $0.14 in the comparable quarter last year and versus the business outlook range of $0.18 to $0.23; of the $0.17 increase compared to the same period last year, approximately $0.12 was due largely to a lower comparable tax rate, with the balance from higher capacity utilization, strategic actions in EMEA and a lower share count from 2012 share repurchases  
  • On a non-GAAP basis, fourth quarter 2012 diluted earnings per share from continuing operations were $0.39 versus $0.27 in the same period last year (see Exhibit 6 for reconciliation) and versus a business outlook range of $0.28 to $0.33, with the comparable increase driven largely by the above-mentioned factors; relative to the business outlook range, the increase was principally due to higher capacity utilization and a lower comparable tax rate  
  • Consolidated seat capacity decreased in line with the Company's stated 2012 year-end target of 2,000 to 39,300 in fourth quarter 2012 from 41,300 seats in the comparable period last year driven by the Company's on-going efforts to rationalize underutilized capacity. Consolidated capacity utilization rates increased to 75% in the fourth quarter 2012 from 73% in the comparable period last year due to higher utilization rates in EMEA and overall reductions in seat capacity

Americas Region

Revenues from continuing operations from the Company's Americas region, including operations in North America and offshore (Latin America, South Asia and the Asia Pacific region), increased 13.5% to $258.3 million, or 84.9% of total revenues, for the fourth quarter of 2012 compared to $227.6 million, or 82.4% of total revenues, in the prior year's fourth quarter. The Alpine Access acquisition contributed $30.5 million in revenues to the Americas region in the fourth quarter of 2012. Excluding the revenue contribution from Alpine Access and on a constant currency basis, the 2.0% comparable decline in Americas' revenues from continuing operations was largely a result of previously discussed end-of-life client programs, which more than offset the increase in demand from certain clients within the financial services, travel and communications verticals.

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