Concentrix Historical Financial Results | Unaudited | Audited | Unaudited | |||||||||||||||||||
(in thousands) | 2020 | 2021 | ||||||||||||||||||||
GAAP Consolidated Income Statement | Q1 | Q2 | Q3 | Q4 | YTD 2020 | Q1 | Q2 | Q3 | Q4 | YTD 2021 | ||||||||||||
Revenue | ||||||||||||||||||||||
Industry vertical: | ||||||||||||||||||||||
Technology and consumer electronics | $ | 323,913 | $ | 327,997 | $ | 360,365 | $ | 410,542 | $ | 1,422,817 | $ | 412,818 | $ | 417,277 | $ | 448,104 | $ | 481,004 | $ | 1,759,203 | ||
Communications and media | 263,564 | 210,684 | 240,718 | 239,268 | 954,234 | 248,790 | 254,860 | 256,461 | 245,172 | 1,005,283 | ||||||||||||
Retail, travel and ecommerce | 198,914 | 168,380 | 191,118 | 237,912 | 796,324 | 239,001 | 231,966 | 241,662 | 272,921 | 985,550 | ||||||||||||
Banking, financial services and insurance | 192,703 | 168,283 | 165,961 | 185,522 | 712,469 | 209,084 | 228,816 | 210,730 | 213,403 | 862,033 | ||||||||||||
Healthcare | 97,325 | 84,965 | 91,838 | 118,558 | 392,686 | 125,224 | 115,418 | 113,749 | 135,464 | 489,855 | ||||||||||||
Other | 112,201 | 106,053 | 113,693 | 109,056 | 441,004 | 118,361 | 121,541 | 126,545 | 118,644 | 485,091 | ||||||||||||
Total revenue | $ | 1,188,619 | $ | 1,066,363 | $ | 1,163,694 | $ | 1,300,858 | $ | 4,719,534 | $ | 1,353,278 | $ | 1,369,878 | $ | 1,397,251 | $ | 1,466,608 | $ | 5,587,015 | ||
Revenue | $ | 1,188,619 | $ | 1,066,363 | $ | 1,163,694 | $ | 1,300,858 | $ | 4,719,534 | $ | 1,353,278 | $ | 1,369,878 | $ | 1,397,251 | $ | 1,466,608 | $ | 5,587,015 | ||
Cost of revenue | 743,429 | 721,193 | 751,161 | 842,226 | 3,058,009 | 867,228 | 887,149 | 915,910 | 947,240 | 3,617,527 | ||||||||||||
Gross profit | 445,190 | 345,170 | 412,533 | 458,632 | 1,661,525 | 486,050 | 482,729 | 481,341 | 519,368 | 1,969,488 | ||||||||||||
Selling, general and administrative expenses | 356,979 | 321,590 | 335,770 | 338,425 | 1,352,764 | 351,161 | 354,505 | 329,962 | 361,463 | 1,397,091 | ||||||||||||
Operating income | 88,211 | 23,580 | 76,763 | 120,207 | 308,761 | 134,889 | 128,224 | 151,379 | 157,905 | 572,397 | ||||||||||||
Interest expense and finance charges, net | 17,585 | 12,928 | 9,002 | 8,798 | 48,313 | 7,703 | 6,745 | 4,868 | 3,730 | 23,046 | ||||||||||||
Other (income) expense, net | (3,235) | (1,641) | 593 | (3,164) | (7,447) | 3,803 | (3,546) | (5,858) | (744) | (6,345) | ||||||||||||
Income before income taxes | 73,861 | 12,293 | 67,168 | 114,573 | 267,895 | 123,383 | 125,025 | 152,369 | 154,919 | 555,696 | ||||||||||||
Provision for income taxes | 21,544 | 9,823 | 21,771 | 49,946 | 103,084 | 34,572 | 42,121 | 42,615 | 30,811 | 150,119 | ||||||||||||
Net income | $ | 52,317 | $ | 2,470 | $ | 45,397 | $ | 64,627 | $ | 164,811 | $ | 88,811 | $ | 82,904 | $ | 109,754 | $ | 124,108 | $ | 405,577 | ||
Basic earnings per common share ("EPS") | $ | 1.01 | $ | 0.05 | $ | 0.88 | $ | 1.25 | $ | 3.19 | $ | 1.72 | $ | 1.59 | $ | 2.10 | $ | 2.37 | $ | 7.78 | ||
Diluted EPS | $ | 1.01 | $ | 0.05 | $ | 0.88 | $ | 1.25 | $ | 3.19 | $ | 1.69 | $ | 1.57 | $ | 2.08 | $ | 2.35 | $ | 7.70 |
Unaudited | Unaudited | |||||||||||||||||||||
2020 | 2021 | |||||||||||||||||||||
Non-GAAP Financial information * | Q1 | Q2 | Q3 | Q4 | YTD 2020 | Q1 | Q2 | Q3 | Q4 | YTD 2021 | ||||||||||||
Operating income | $ | 88,211 | $ | 23,580 | $ | 76,763 | $ | 120,207 | $ | 308,761 | $ | 134,889 | $ | 128,224 | $ | 151,379 | $ | 157,905 | $ | 572,397 | ||
Acquisition-related and integration expenses | 14,352 | 3,198 | 3,880 | 6,552 | 27,982 | - | - | - | 825 | 825 | ||||||||||||
Spin-off related expenses | 1,000 | 506 | 283 | 7,694 | 9,483 | - | - | - | - | - | ||||||||||||
Amortization of intangibles | 36,978 | 36,379 | 36,833 | 37,093 | 147,283 | 34,601 | 34,597 | 33,997 | 33,744 | 136,939 | ||||||||||||
Share-based compensation | 4,262 | 3,840 | 3,929 | 3,883 | 15,914 | 7,118 | 9,283 | 9,457 | 10,904 | 36,762 | ||||||||||||
Gain on divestitures and related transaction costs | - | - | - | - | - | - | - | (13,197) | - | (13,197) | ||||||||||||
Non-GAAP operating income | $ | 144,803 | $ | 67,503 | $ | 121,688 | $ | 175,429 | $ | 509,423 | $ | 176,608 | $ | 172,104 | $ | 181,636 | $ | 203,378 | $ | 733,726 | ||
Net income | $ | 52,317 | $ | 2,470 | $ | 45,397 | $ | 64,627 | $ | 164,811 | $ | 88,811 | $ | 82,904 | $ | 109,754 | $ | 124,108 | $ | 405,577 | ||
Interest expense and finance charges, net | 17,585 | 12,928 | 9,002 | 8,798 | 48,313 | 7,703 | 6,745 | 4,868 | 3,730 | 23,046 | ||||||||||||
Provision for income taxes | 21,544 | 9,823 | 21,771 | 49,946 | 103,084 | 34,572 | 42,121 | 42,615 | 30,811 | 150,119 | ||||||||||||
Other (income) expense, net | (3,235) | (1,641) | 593 | (3,164) | (7,447) | 3,803 | (3,546) | (5,858) | (744) | (6,345) | ||||||||||||
Acquisition-related and integration expenses | 14,352 | 3,198 | 3,880 | 6,552 | 27,982 | - | - | - | 825 | 825 | ||||||||||||
Spin-off related expenses | 1,000 | 506 | 283 | 7,694 | 9,483 | - | - | - | - | - | ||||||||||||
Gain on divestitures and related transaction costs | - | - | - | - | - | - | - | (13,197) | - | (13,197) | ||||||||||||
Amortization of intangibles | 36,978 | 36,379 | 36,833 | 37,093 | 147,283 | 34,601 | 34,597 | 33,997 | 33,744 | 136,939 | ||||||||||||
Share-based compensation | 4,262 | 3,840 | 3,929 | 3,883 | 15,914 | 7,118 | 9,283 | 9,457 | 10,904 | 36,762 | ||||||||||||
Depreciation (excluding accelerated depreciation included | 31,661 | 30,161 | 31,509 | 35,795 | 129,126 | 35,999 | 36,226 | 33,146 | 34,865 | 140,236 | ||||||||||||
in acquisition-related and integration expenses above) | ||||||||||||||||||||||
Adjusted EBITDA | $ | 176,464 | $ | 97,664 | $ | 153,197 | $ | 211,224 | $ | 638,549 | $ | 212,607 | $ | 208,330 | $ | 214,782 | $ | 238,243 | $ | 873,962 | ||
Operating margin | 7.4 % | 2.2 % | 6.6 % | 9.2 % | 6.5 % | 10.0 % | 9.4 % | 10.8 % | 10.8 % | 10.2 % | ||||||||||||
Non-GAAP operating margin | 12.2 % | 6.3 % | 10.5 % | 13.5 % | 10.8 % | 13.1 % | 12.6 % | 13.0 % | 13.9 % | 13.1 % | ||||||||||||
Adjusted EBITDA margin | 14.8 % | 9.2 % | 13.2 % | 16.2 % | 13.5 % | 15.7 % | 15.2 % | 15.4 % | 16.2 % | 15.6 % | ||||||||||||
Net income | $ | 52,317 | $ | 2,470 | $ | 45,397 | $ | 64,627 | $ | 164,811 | $ | 88,811 | $ | 82,904 | $ | 109,754 | $ | 124,108 | $ | 405,577 | ||
Acquisition-related and integration expenses | 14,352 | 3,198 | 3,880 | 6,552 | 27,982 | - | - | - | 825 | 825 | ||||||||||||
Spin-off related expenses | 1,000 | 506 | 283 | 7,694 | 9,483 | - | - | - | - | - | ||||||||||||
Amortization of intangibles | 36,978 | 36,379 | 36,833 | 37,093 | 147,283 | 34,601 | 34,597 | 33,997 | 33,744 | 136,939 | ||||||||||||
Share-based compensation | 4,262 | 3,840 | 3,929 | 3,883 | 15,914 | 7,118 | 9,283 | 9,457 | 10,904 | 36,762 | ||||||||||||
Gain on divestitures and related transaction costs | - | - | - | - | - | - | - | (13,197) | - | (13,197) | ||||||||||||
Income taxes related to the above** | (13,469) | (11,125) | (11,379) | (13,037) | (49,010) | (10,567) | (1,860) | (8,315) | (11,549) | (32,291) | ||||||||||||
Non-GAAP net income | $ | 95,440 | $ | 35,268 | $ | 78,943 | $ | 106,812 | $ | 316,463 | $ | 119,963 | $ | 124,924 | $ | 131,696 | $ | 158,032 | $ | 534,615 |
Unaudited | Unaudited | |||||||||||||||||||||
2020 | 2021 | |||||||||||||||||||||
Non-GAAP Financial information * | Q1 | Q2 | Q3 | Q4 | YTD 2020 | Q1 | Q2 | Q3 | Q4 | YTD 2021 | ||||||||||||
Net income | $ | 52,317 | $ | 2,470 | $ | 45,397 | $ | 64,627 | $ | 164,811 | $ | 88,811 | $ | 82,904 | $ | 109,754 | $ | 124,108 | $ | 405,577 | ||
Less: net income allocated to participating securities | - | - | - | - | - | (1,047) | (1,254) | (1,649) | (1,790) | (5,724) | ||||||||||||
Net income attributable to common stockholders | 52,317 | 2,470 | 45,397 | 64,627 | 164,811 | 87,764 | 81,650 | 108,105 | 122,318 | 399,853 | ||||||||||||
Acquisition-related and integration expenses allocated to | 14,352 | 3,198 | 3,880 | 6,552 | 27,982 | - | - | - | 813 | 813 | ||||||||||||
common stockholders | ||||||||||||||||||||||
Spin-off related expenses allocated to common | 1,000 | 506 | 283 | 7,694 | 9,483 | - | - | - | - | - | ||||||||||||
stockholders | ||||||||||||||||||||||
Amortization of intangibles allocated to common | 36,978 | 36,379 | 36,833 | 37,093 | 147,283 | 34,193 | 34,074 | 33,486 | 33,257 | 135,006 | ||||||||||||
stockholders | ||||||||||||||||||||||
Share-based compensation allocated to common | 4,262 | 3,840 | 3,929 | 3,883 | 15,914 | 7,034 | 9,143 | 9,315 | 10,747 | 36,243 | ||||||||||||
stockholders | ||||||||||||||||||||||
Gain on divestitures and related transaction costs allocated | - | - | - | - | - | - | - | (12,999) | - | (13,011) | ||||||||||||
to common stockholders | ||||||||||||||||||||||
Income taxes related to the above allocated to common | (13,469) | (11,125) | (11,379) | (13,037) | (49,010) | (10,442) | (1,832) | (8,190) | (11,382) | (31,835) | ||||||||||||
stockholders** | ||||||||||||||||||||||
Non-GAAP net income attributable to common stockholders | $ | 95,440 | $ | 35,268 | $ | 78,943 | $ | 106,812 | $ | 316,463 | $ | 118,549 | $ | 123,035 | $ | 129,717 | $ | 155,753 | $ | 527,069 | ||
Non-GAAP diluted EPS | $ | 1.85 | $ | 0.68 | $ | 1.53 | $ | 2.07 | $ | 6.13 | $ | 2.29 | $ | 2.37 | $ | 2.49 | $ | 2.99 | $ | 10.15 | ||
Cash Flow Data | Q1 | Q2 | Q3 | Q4 | YTD 2020 | Q1 | Q2 | Q3 | Q4 | YTD 2021 | ||||||||||||
Net cash provided by operating activities | $ | 54,886 | $ | 242,315 | $ | 91,376 | $ | 119,037 | $ | 507,614 | $ | 35,884 | $ | 203,231 | $ | 93,010 | $ | 182,053 | $ | 514,178 | ||
Purchases of property and equipment | (43,888) | (25,353) | (37,008) | (65,083) | (171,332) | (41,950) | (28,808) | (42,111) | (36,210) | (149,079) | ||||||||||||
Free cash flow (a non-GAAP measure) | $ | 10,998 | $ | 216,962 | $ | 54,368 | $ | 53,954 | $ | 336,282 | $ | (6,066) | $ | 174,423 | $ | 50,899 | $ | 145,843 | $ | 365,099 | ||
Unaudited | Unaudited | |||||||||||||||||
2020 | 2021 | |||||||||||||||||
Balance sheet data | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||
SELECTED CONSOLIDATED BALANCE SHEET DATA | ||||||||||||||||||
Cash and cash equivalents | $ | 83,620 | $ | 94,749 | $ | 93,341 | $ | 152,656 | $ | 117,576 | $ | 131,249 | $ | 154,193 | $ | 182,038 | ||
Working capital | (1,458,411) | (1,404,146) | (1,299,933) | 414,714 | 529,728 | 587,259 | 572,034 | 574,851 | ||||||||||
Total assets | 5,159,793 | 4,955,479 | 5,119,394 | 5,177,556 | 5,120,849 | 5,102,240 | 5,009,440 | 5,046,367 | ||||||||||
Borrowings, current | - | - | - | 33,750 | - | - | - | - | ||||||||||
Total equity | $1,509,122 | $1,492,540 | $1,627,967 | $ | 2,302,085 | $ | 2,389,278 | $ | 2,529,768 | $ | 2,565,755 | $ | 2,620,255 | |||||
Audited | ||||||||||||||||||
CONSOLIDATED BALANCE SHEET | ||||||||||||||||||
ASSETS | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash and cash equivalents | $ | 83,620 | $ | 94,749 | $ | 93,341 | $ | 152,656 | $ | 117,576 | $ | 131,249 | $ | 154,193 | $ | 182,038 | ||
Accounts receivable, net | 968,750 | 868,831 | 940,091 | 1,081,481 | 1,129,008 | 1,089,387 | 1,131,416 | 1,207,953 | ||||||||||
Receivable from former parent | 19,191 | 20,725 | 26,298 | - | - | - | - | - | ||||||||||
Loan receivable from former parent | 58,456 | 62,183 | 73,425 | - | - | - | - | - | ||||||||||
Assets held for sale | - | - | - | - | - | 83,010 | - | - | ||||||||||
Other current assets | 200,266 | 174,114 | 233,029 | 189,239 | 160,720 | 173,226 | 175,217 | 153,074 | ||||||||||
Total current assets | 1,330,283 | 1,220,602 | 1,366,184 | 1,423,376 | 1,407,304 | 1,476,872 | 1,460,826 | 1,543,065 | ||||||||||
Property and equipment, net | 416,675 | 403,720 | 423,438 | 451,649 | 445,286 | 399,422 | 397,841 | 407,144 | ||||||||||
Goodwill | 1,825,113 | 1,815,692 | 1,835,526 | 1,836,050 | 1,837,921 | 1,837,900 | 1,822,642 | 1,813,502 | ||||||||||
Intangible assets, net | 895,743 | 855,810 | 835,776 | 798,959 | 769,149 | 736,877 | 695,285 | 655,528 | ||||||||||
Deferred tax assets | 71,998 | 71,773 | 72,956 | 47,423 | 49,480 | 41,582 | 43,007 | 48,413 | ||||||||||
Other assets | 619,981 | 587,882 | 585,514 | 620,099 | 611,709 | 609,587 | 589,839 | 578,715 | ||||||||||
Total assets | $5,159,793 | $4,955,479 | $5,119,394 | $ | 5,177,556 | $ | 5,120,849 | $ | 5,102,240 | $ | 5,009,440 | $ | 5,046,367 | |||||
LIABILITIES AND EQUITY | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||
Accounts payable | $ | 106,252 | $ | 102,610 | $ | 117,796 | $ | 140,575 | $ | 101,215 | $ | 109,506 | $ | 78,618 | $ | 129,359 | ||
Current portion of long-term debt | - | - | - | 33,750 | - | - | - | - | ||||||||||
Payable to former parent | 86,204 | 83,248 | 87,016 | 22,825 | - | - | - | - | ||||||||||
Loans payable to former parent | 1,964,146 | 1,768,449 | 1,721,207 | - | - | - | - | - | ||||||||||
Accrued compensation and benefits | 273,104 | 304,727 | 360,609 | 419,715 | 365,272 | 363,948 | 418,329 | 453,434 | ||||||||||
Other accrued liabilities | 320,636 | 358,384 | 354,040 | 371,072 | 373,180 | 356,665 | 342,908 | 351,642 | ||||||||||
Income taxes payable | 38,352 | 7,330 | 25,449 | 20,725 | 37,909 | 29,141 | 48,937 | 33,779 | ||||||||||
Liabilities held for sale | - | - | - | - | - | 30,353 | - | - | ||||||||||
Total current liabilities | 2,788,694 | 2,624,748 | 2,666,117 | 1,008,662 | 877,576 | 889,613 | 888,792 | 968,214 |
Unaudited | Audited | Unaudited | ||||||||
2020 | 2021 | |||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||
Long-term debt, net | - | - | - | 1,111,362 | 1,113,218 | 959,158 | 865,837 | 802,017 | ||
Other long-term liabilities | 675,813 | 655,957 | 653,567 | 601,887 | 598,314 | 595,619 | 579,746 | 546,410 | ||
Deferred tax liabilities | 186,164 | 182,234 | 171,743 | 153,560 | 142,463 | 128,082 | 109,310 | 109,471 | ||
Total liabilities | 3,650,671 | 3,462,939 | 3,491,427 | 2,875,471 | 2,731,571 | 2,572,472 | 2,443,685 | 2,426,112 | ||
Commitments and contingencies | ||||||||||
Equity: | ||||||||||
Preferred stock | - | - | - | - | - | - | - | - | ||
Common stock | - | - | - | - | 5 | 5 | 5 | 5 | ||
Additional paid-in capital | - | - | - | - | 2,314,996 | 2,327,025 | 2,338,108 | 2,355,767 | ||
Treasury stock | - | (409) | (527) | (13,964) | (57,486) | |||||
Retained earnings | - | - | - | - | 88,811 | 171,715 | 281,469 | 392,495 | ||
Former parent company investment | 1,578,184 | 1,588,748 | 1,638,529 | 2,305,899 | - | - | - | - | ||
Accumulated other comprehensive loss | (69,062) | (96,208) | (10,562) | (3,814) | (14,125) | 31,550 | (39,863) | (70,526) | ||
Total stockholders' equity | 1,509,122 | 1,492,540 | 1,627,967 | 2,302,085 | 2,389,278 | 2,529,768 | 2,565,755 | 2,620,255 | ||
Total liabilities and stockholders' equity | $5,159,793 | $4,955,479 | $5,119,394 | $5,177,556 | $5,120,849 | $5,102,240 | $5,009,440 | $5,046,367 | ||
* Non-GAAP Financial Measures
In addition to disclosing financial results that are determined in accordance with GAAP, we also disclose certain non-GAAP financial information, including:
- Non-GAAPoperating income, which is operating income, adjusted to exclude acquisition-related and integration expenses, including related restructuring costs, spin-off related expenses, amortization of intangible assets, share-based compensation and gain on divestitures and related transaction costs.
- Non-GAAPoperating margin, which is non-GAAP operating income, as defined above, divided by revenue.
- Adjusted earnings before interest, taxes, depreciation, and amortization, or adjusted EBITDA, which is non-GAAP operating income, as defined above, plus depreciation.
- Adjusted EBITDA margin, which is adjusted EBITDA, as defined above, divided by revenue.
- Non-GAAPnet income, which is net income excluding the tax effected impact of acquisition-related and integration expenses, including related restructuring costs, spin-off related expenses, amortization of intangible assets, share-based compensation and gain on divestitures and related transaction costs.
- Free cash flow, which is cash flows from operating activities less capital expenditures. We believe that free cash flow is a meaningful measure of cash flows since capital expenditures are a necessary component of ongoing operations. However, free cash flow has limitations because it does not represent the residual cash flow available for discretionary expenditures. For example, free cash flow does not incorporate payments for business acquisitions.
- Non-GAAPdiluted earnings per common share ("EPS"), which is diluted EPS excluding the per share, tax effected impact of acquisition-related and integration expenses, including related restructuring costs, spin-off related expenses, amortization of intangible assets, share-based compensation and gain on divestitures and related transaction costs.
We believe that providing this additional information is useful to the reader to better assess and understand our base operating performance, especially when comparing results with previous periods and for planning and forecasting in future periods, primarily because management typically monitors the business adjusted for these items in addition to GAAP results. Management also uses these non-GAAP measures to establish operational goals and, in some cases, for measuring performance for compensation purposes. These non-GAAP financial measures exclude amortization of intangible assets. Although intangible assets contribute to our revenue generation, the amortization of intangible assets does not directly relate to the services performed for our clients. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of our acquisition activity. Accordingly, we believe excluding the amortization of intangible assets, along with the other non-GAAP adjustments, which neither relate to the ordinary course of our business nor reflect our underlying business performance, enhances our and our investors' ability to compare our past financial performance with its current performance and to analyze underlying business performance and trends. These non-GAAP financial measures also exclude share-based compensation expense. Given the subjective assumptions and the variety of award types that companies can use when calculating share-based compensation expense, management believes this additional information allows investors to make additional comparisons between our operating results and those of our peers. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be used as a complement to, and in conjunction with, data presented in accordance with GAAP.
- The tax effect of taxable and deductible non-GAAP adjustments was calculated using the tax deductible portion of the expenses and applying the entity-specific, statutory tax rates applicable to each item during the respective fiscal years.
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Concentrix Corporation published this content on 18 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 January 2022 21:31:04 UTC.