EX-99.1 2 ex_530308.htm EXHIBIT 99.1 ex_530308.htm

Exhibit 99.1

 

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Startek Reports Second Quarter 2023 Financial Results

 

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

- Authorized $20 Million Share Repurchase Program -

 

DENVER  August 10, 2023 - 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 $2.96 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.

 

Investor Relations

Cody Cree
Gateway Group, Inc.
(949) 574-3860
SRT@gatewayir.com

 

Media Relations

Neha Iyer

Startek

neha.iyer@startek.com 

 

 

 

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       (313 )
      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). Management uses Adjusted EBITDA as a performance measure to analyze the performance of our business. Management believes that excluding these non-cash and other non-recurring items permits a more meaningful comparison and understanding of our strength and performance of our ongoing operations for our investors and analysts.

 

Adjusted EPS:


Adjusted EPS is a non-GAAP financial measure presenting the earnings generated by the ongoing operations that we believe are useful to investors in making meaningful comparisons to other companies, although our measure of Adjusted EPS may not be directly comparable to similar measures used by other companies, and period-over-period comparisons. Adjusted EPS is defined as our diluted earnings per common share attributable to Startek shareholders adjusted to exclude the effects of the amortization of acquisition-related intangible assets, and the impact of certain events, gains, losses or other charges that affect period-over-period comparisons. Acquisition-related intangible assets are recognized as a result of the application of Accounting Standards Codification Topic (“ASC”) 805, Business Combinations (such as customer relationships and Brand), and their amortization is significantly affected by the size and timing of our acquisitions.

 

Adjusted EBITDA:

                               
   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2023

   

2022

   

2023

   

2022

 

Continuing Operations

                               

Net income (loss)

    (31 )     2,447       (589 )     1,680  

Tax expense

    101       1,303       1,010       1,941  

Share of income 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  

Depreciation and amortization expense

    5,297       5,212       10,535       11,043  

Private offer transaction cost

    -       692       -       1,192  

Impairment losses and restructuring cost

    (442 )     77       (125 )     73  

Share-based compensation expense

    389       405       769       833  

Other non recurring costs

    1,100       -       1,100       -  

CSS option amortisation

    -       360       -       720  

Adjusted EBITDA

    7,651       7,854       15,942       16,802  
                                 

Discontinued Operations

                               

a) Argentina

                               

Net income (loss)

    (910 )     (1,097 )     (2,419 )     (2,273 )

Tax expense

    -       -       -       -  

Interest expense and other income (expense), net

    (1,476 )     92       (2,009 )     (1,275 )

Foreign exchange gains (losses), net

    242       34       356       212  

Depreciation and amortization expense

    -       143       -       293  

Impairment losses and restructuring cost

    1,825       667       3,166       2,049  

Adjusted EBITDA

    (319 )     (161 )     (906 )     (994 )
                                 

b) CCC

                               

Net income (loss)

    7,476       1,279       11,462       3,507  

Tax expense

    4,190       120       5,374       1,575  

Interest expense and other income (expense), net

    -       697       1,174       1,308  

Foreign exchange gains (losses), net

    -       8       10       14  

Depreciation and amortization expense

    -       1,614       -       3,222  

Impairment losses and restructuring cost

    -       -       4       30  

Other non recurring costs / (Income)

    (11,666 )     -       (11,666 )     -  

Adjusted EBITDA

    -       3,718       6,358       9,656  
                                 

Adjusted EBITDA from discontinued operations (a+b)

    (319 )     3,557       5,452       8,662  
                                 

Adjusted EBITDA from continuing and discontinued operations

    7,332       11,411       21,394       25,464  

 

 

 

Adjusted EPS:

                               
   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2023

   

2022

   

2023

   

2022

 

Continuing Operations

                               

Income (loss) attributable to Startek shareholders

    (31 )     2,447       (589 )     1,680  

Share based compensation expense

    180       405       478       833  

Amortization of intangible assets, net of tax

    953       2,261       3,197       4,504  

Private offer transaction cost

    -       692       -       1,192  

Impairment losses and restructuring cost

    (326 )     77       (77 )     73  

Other non recurring costs / (Income)

    684       -       684       -  

CSS option amortisation

    -       360       -       720  

Adjusted net income

    1,460       6,242       3,693       9,002  
                                 

Discontinued Operations

                               

a) Argentina

                               

Income (loss) attributable to Startek shareholders

    (910 )     (1,097 )     (2,419 )     (2,273 )

Impairment losses and restructuring cost

    914       667       1,968       2,049  

Adjusted net income (loss)

    4       (430 )     (451 )     (224 )
                                 

b) CCC

                               

Income (loss) attributable to Startek shareholders

    7,476       518       8,873       1,217  

Impairment losses and restructuring cost

    -       -       3       30  

Other non recurring costs / (Income)

    (7,476 )     -       (7,476 )     -  

Adjusted net income (loss)

    -       518       1,400       1,247  
                                 

Adjusted net income (loss) from Discontinued Operations

    4       88       949       1,023  
                                 

Adjusted Net Income from Continuing and Discontinued Operations

    1,464       6,330       4,642       10,025  
                                 

Weighted average common shares outstanding - basic

    40,316       40,284       40,302       40,311  

Weighted average common shares outstanding - diluted

    40,318       40,308       40,314       40,366  
                                 

Adjusted EPS from Continuing Operations - Basic

    0.04       0.15       0.09       0.22  

Adjusted EPS from Continuing Operations - Diluted

    0.04       0.15       0.09       0.22  
                                 

Adjusted EPS from Discontinued Operations - Basic

    0.00       0.00       0.02       0.03  

Adjusted EPS from Discontinued Operations - Diluted

    0.00       0.00       0.02       0.03  
                                 

Adjusted EPS from Continuing and Discontinued Operations - Basic

    0.04       0.15       0.11       0.25  

Adjusted EPS from Continuing and Discontinued Operations - Diluted

    0.04       0.15       0.11       0.25