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– Fourth quarter 2014 constant currency revenues up 7.6% comparably with non-GAAP operating margins at 9.6% – Agent productivity gains and expense leverage drive fourth quarter 2014 diluted earnings per share results above business outlook expectations – Full-year 2015 business outlook implies anticipated non-GAAP operating margin expansion despite foreign exchange headwinds to revenues
Sykes Enterprises (Nasdaq:SYKE), a customer contact management solutions and services firm, announced today its financial results for the fourth-quarter and full-year ended December 31, 2014.
Fourth Quarter 2014 Financial Highlights:
– Fourth quarter 2014 revenues of $349.9 million increased $14.6 million, or 4.3%, from $335.3 million in the comparable quarter last year, driven largely by the expansion of existing and some new client programs across the communications, technology and healthcare verticals, more than offsetting mixed demand within the financial services and transportation and leisure verticals; on a constant currency basis, fourth quarter 2014 revenues increased 7.6% comparably
– Fourth quarter 2014 operating margin was 9.3% versus 5.7% in the same period last year, with the fourth quarter 2014 operating margin reflecting 70 basis points of contribution related to a pre-tax gain of $2.6 million on the sale of a facility closed in the third quarter of 2013 as part of the Company’s capacity rationalization program
– On a non-GAAP basis (see section titled “Non-GAAP Financial Measures” for an explanation and see Exhibit 6 for reconciliation), which excludes the gain on the facility sale, fourth quarter 2014 operating margin increased to 9.6% versus 7.1% in the same period last year, primarily driven by higher revenue, improved capacity utilization and better expense leverage, coupled with a favorable foreign exchange impact (approximately 80 basis points)
– Fourth quarter 2014 diluted earnings per share were $0.53 versus $0.26 in the comparable quarter last year, with the increase due principally to the above-mentioned factors, as well as the contribution of approximately $0.04 in diluted earnings per share from the facility sale, coupled with a lower effective tax rate
– On a non-GAAP basis, which excludes the facility-sale gain, fourth quarter 2014 diluted earnings per share increased to $0.55 from $0.33 in the same period last year (see Exhibit 6 for reconciliation) with the comparable increase driven largely by the previously-mentioned factors. Fourth quarter 2014 diluted earnings per share were also higher relative to the Company’s November 2014 business outlook range of $0.50 to $0.54 also driven by the aforementioned factors. Adjusting for the non-GAAP effective tax rate of 25% and forecasted interest and other expense of $0.8 million as projected in the Company’s November 2014 business outlook, fourth quarter 2014 diluted earnings per share would have been $0.58
– Consolidated capacity utilization rate increased to 79% in the fourth quarter of 2014 from 73% in the comparable period last year, due to growth in existing and some new client programs across both the Americas and EMEA regions, coupled with a reduction in capacity. Consolidated capacity utilization rate remained unchanged sequentially at 79% in the fourth quarter of 2014
