(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
(Address of principal executive offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
Date: September 27, 2021 | CONCENTRIX CORPORATION | |||||||
By: | /s/ Andre Valentine | |||||||
Andre Valentine Chief Financial Officer |
Three Months Ended | |||||||||||||||||
August 31, 2021 | August 31, 2020 | Change | |||||||||||||||
Revenue ($M) | $ | 1,397.3 | $ | 1,163.7 | 20.1 | % | |||||||||||
Operating income ($M) | $ | 151.4 | $ | 76.8 | 97.1 | % | |||||||||||
Non-GAAP operating income ($M) (1) | $ | 181.6 | $ | 121.7 | 49.2 | % | |||||||||||
Operating margin | 10.8 | % | 6.6 | % | 420 bps | ||||||||||||
Non-GAAP operating margin (1) | 13.0 | % | 10.5 | % | 250 bps | ||||||||||||
Net income ($M) | $ | 109.8 | $ | 45.4 | 141.9 | % | |||||||||||
Non-GAAP net income ($M) (1) | $ | 131.7 | $ | 78.9 | 66.9 | % | |||||||||||
Adjusted EBITDA ($M) (1) | $ | 214.8 | $ | 153.2 | 40.2 | % | |||||||||||
Adjusted EBITDA margin (1) | 15.4 | % | 13.2 | % | 220 bps | ||||||||||||
Diluted earnings per common share (2) | $ | 2.08 | $ | 0.88 | 136.4 | % | |||||||||||
Non-GAAP diluted earnings per common share (1), (2) | $ | 2.49 | $ | 1.53 | 62.7 | % |
August 31, 2021 | November 30, 2020 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 154,193 | $ | 152,656 | |||||||
Accounts receivable, net | 1,131,416 | 1,081,481 | |||||||||
Other current assets | 175,217 | 189,239 | |||||||||
Total current assets | 1,460,826 | 1,423,376 | |||||||||
Property and equipment, net | 397,841 | 451,649 | |||||||||
Goodwill | 1,822,642 | 1,836,050 | |||||||||
Intangible assets, net | 695,285 | 798,959 | |||||||||
Deferred tax assets | 43,007 | 47,423 | |||||||||
Other assets | 589,839 | 620,099 | |||||||||
Total assets | $ | 5,009,440 | $ | 5,177,556 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 78,618 | $ | 140,575 | |||||||
Current portion of long-term debt | — | 33,750 | |||||||||
Payable to former parent | — | 22,825 | |||||||||
Accrued compensation and benefits | 418,329 | 419,715 | |||||||||
Other accrued liabilities | 342,908 | 371,072 | |||||||||
Income taxes payable | 48,937 | 20,725 | |||||||||
Total current liabilities | 888,792 | 1,008,662 | |||||||||
Long-term debt, net | 865,837 | 1,111,362 | |||||||||
Other long-term liabilities | 579,746 | 601,887 | |||||||||
Deferred tax liabilities | 109,310 | 153,560 | |||||||||
Total liabilities | 2,443,685 | 2,875,471 | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.0001 par value, 10,000 shares authorized as of August 31, 2021; no shares issued and outstanding as of August 31, 2021 | — | — | |||||||||
Common stock, $0.0001 par value, 250,000 shares authorized as of August 31, 2021; 51,448 shares issued and outstanding as of August 31, 2021 | 5 | — | |||||||||
Additional paid-in capital | 2,338,108 | — | |||||||||
Treasury stock, 93 shares as of August 31, 2021 | (13,964) | — | |||||||||
Retained earnings | 281,469 | — | |||||||||
Former parent company investment | — | 2,305,899 | |||||||||
Accumulated other comprehensive loss | (39,863) | (3,814) | |||||||||
Total stockholders’ equity | 2,565,755 | 2,302,085 | |||||||||
Total liabilities and stockholders’ equity | $ | 5,009,440 | $ | 5,177,556 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
August 31, 2021 | August 31, 2020 | % Change | August 31, 2021 | August 31, 2020 | % Change | ||||||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||||||||
Technology and consumer electronics | $ | 448,104 | $ | 360,365 | 24 | % | $ | 1,278,199 | $ | 1,012,275 | 26 | % | |||||||||||||||||||||||
Communications and media | 256,461 | 240,718 | 7 | % | 760,111 | 714,966 | 6 | % | |||||||||||||||||||||||||||
Retail, travel and ecommerce | 241,662 | 191,118 | 26 | % | 712,629 | 558,412 | 28 | % | |||||||||||||||||||||||||||
Banking, financial services and insurance | 210,730 | 165,961 | 27 | % | 648,630 | 526,948 | 23 | % | |||||||||||||||||||||||||||
Healthcare | 113,749 | 91,838 | 24 | % | 354,391 | 274,128 | 29 | % | |||||||||||||||||||||||||||
Other | 126,545 | 113,693 | 11 | % | 366,447 | 331,947 | 10 | % | |||||||||||||||||||||||||||
Total revenue | 1,397,251 | 1,163,694 | 20 | % | 4,120,407 | 3,418,676 | 21 | % | |||||||||||||||||||||||||||
Cost of revenue | 915,910 | 751,161 | 22 | % | 2,670,287 | 2,215,783 | 21 | % | |||||||||||||||||||||||||||
Gross profit | 481,341 | 412,533 | 17 | % | 1,450,120 | 1,202,893 | 21 | % | |||||||||||||||||||||||||||
Selling, general and administrative expenses | 329,962 | 335,770 | (2) | % | 1,035,628 | 1,014,339 | 2 | % | |||||||||||||||||||||||||||
Operating income | 151,379 | 76,763 | 97 | % | 414,492 | 188,554 | 120 | % | |||||||||||||||||||||||||||
Interest expense and finance charges, net | 4,868 | 9,002 | (46) | % | 19,316 | 39,515 | (51) | % | |||||||||||||||||||||||||||
Other expense (income), net | (5,858) | 593 | (1,088) | % | (5,601) | (4,283) | 31 | % | |||||||||||||||||||||||||||
Income before income taxes | 152,369 | 67,168 | 127 | % | 400,777 | 153,322 | 161 | % | |||||||||||||||||||||||||||
Provision for income taxes | 42,615 | 21,771 | 96 | % | 119,308 | 53,138 | 125 | % | |||||||||||||||||||||||||||
Net income | $ | 109,754 | $ | 45,397 | 142 | % | $ | 281,469 | $ | 100,184 | 181 | % | |||||||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||||||||||||||
Basic | $ | 2.10 | $ | 0.88 | $ | 5.41 | $ | 1.94 | |||||||||||||||||||||||||||
Diluted | $ | 2.08 | $ | 0.88 | $ | 5.35 | $ | 1.94 | |||||||||||||||||||||||||||
Weighted-average common shares outstanding | |||||||||||||||||||||||||||||||||||
Basic | 51,432 | 51,602 | 51,288 | 51,602 | |||||||||||||||||||||||||||||||
Diluted | 52,061 | 51,602 | 51,914 | 51,602 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
August 31, 2021 | August 31, 2020 | August 31, 2021 | August 31, 2020 | ||||||||||||||||||||
Revenue | $ | 1,397,251 | $ | 1,163,694 | $ | 4,120,407 | $ | 3,418,676 | |||||||||||||||
Revenue growth, as reported under U.S. GAAP | 20.1 | % | 0.2 | % | 20.5 | % | (2.2) | % | |||||||||||||||
Foreign exchange impact | (2.0) | % | 0.2 | % | (2.7) | % | 0.9 | % | |||||||||||||||
Constant currency revenue growth | 18.1 | % | 0.4 | % | 17.8 | % | (1.3) | % | |||||||||||||||
Effect of excluding revenue of acquired and divested businesses | 1.1 | % | — | % | 0.7 | % | — | % | |||||||||||||||
Adjusted constant currency revenue growth | 19.2 | % | 0.4 | % | 18.5 | % | (1.3) | % | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
August 31, 2021 | August 31, 2020 | August 31, 2021 | August 31, 2020 | ||||||||||||||||||||
Operating income | $ | 151,379 | $ | 76,763 | $ | 414,492 | $ | 188,554 | |||||||||||||||
Acquisition-related and integration expenses | — | 3,880 | — | 21,430 | |||||||||||||||||||
Spin-off related expenses | — | 283 | — | 1,789 | |||||||||||||||||||
Amortization of intangibles | 33,997 | 36,833 | 103,195 | 110,190 | |||||||||||||||||||
Share-based compensation | 9,457 | 3,929 | 25,858 | 12,031 | |||||||||||||||||||
Gain on divestitures and related transaction costs | (13,197) | — | (13,197) | — | |||||||||||||||||||
Non-GAAP operating income | $ | 181,636 | $ | 121,688 | $ | 530,348 | $ | 333,994 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
August 31, 2021 | August 31, 2020 | August 31, 2021 | August 31, 2020 | ||||||||||||||||||||
Net income | $ | 109,754 | $ | 45,397 | $ | 281,469 | $ | 100,184 | |||||||||||||||
Interest expense and finance charges, net | 4,868 | 9,002 | 19,316 | 39,515 | |||||||||||||||||||
Provision for income taxes | 42,615 | 21,771 | 119,308 | 53,138 | |||||||||||||||||||
Other expense (income), net | (5,858) | 593 | (5,601) | (4,283) | |||||||||||||||||||
Acquisition-related and integration expenses | — | 3,880 | — | 21,430 | |||||||||||||||||||
Spin-off related expenses | — | 283 | — | 1,789 | |||||||||||||||||||
Gain on divestitures and related transaction costs | (13,197) | — | (13,197) | — | |||||||||||||||||||
Amortization of intangibles | 33,997 | 36,833 | 103,195 | 110,190 | |||||||||||||||||||
Share-based compensation | 9,457 | 3,929 | 25,858 | 12,031 | |||||||||||||||||||
Depreciation (excluding accelerated depreciation included in acquisition-related and integration expenses above) | 33,146 | 31,509 | 105,371 | 93,331 | |||||||||||||||||||
Adjusted EBITDA | $ | 214,782 | $ | 153,197 | $ | 635,719 | $ | 427,325 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
August 31, 2021 | August 31, 2020 | August 31, 2021 | August 31, 2020 | ||||||||||||||||||||
Operating margin | 10.8 | % | 6.6 | % | 10.1 | % | 5.5 | % | |||||||||||||||
Non-GAAP operating margin | 13.0 | % | 10.5 | % | 12.9 | % | 9.8 | % | |||||||||||||||
Adjusted EBITDA margin | 15.4 | % | 13.2 | % | 15.4 | % | 12.5 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
August 31, 2021 | August 31, 2020 | August 31, 2021 | August 31, 2020 | ||||||||||||||||||||
Net income | $ | 109,754 | $ | 45,397 | $ | 281,469 | $ | 100,184 | |||||||||||||||
Acquisition-related and integration expenses | — | 3,880 | — | 21,430 | |||||||||||||||||||
Spin-off related expenses | — | 283 | — | 1,789 | |||||||||||||||||||
Amortization of intangibles | 33,997 | 36,833 | 103,195 | 110,190 | |||||||||||||||||||
Share-based compensation | 9,457 | 3,929 | 25,858 | 12,031 | |||||||||||||||||||
Gain on divestitures and related transaction costs | (13,197) | — | (13,197) | — | |||||||||||||||||||
Income taxes related to the above (1) | (8,315) | (11,379) | (20,742) | (35,973) | |||||||||||||||||||
Non-GAAP net income | $ | 131,696 | $ | 78,943 | $ | 376,583 | $ | 209,651 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
August 31, 2021 | August 31, 2020 | August 31, 2021 | August 31, 2020 | ||||||||||||||||||||
Net income | $ | 109,754 | $ | 45,397 | $ | 281,469 | $ | 100,184 | |||||||||||||||
Less: net income allocated to participating securities | (1,649) | — | (3,945) | — | |||||||||||||||||||
Net income attributable to common stockholders | 108,105 | 45,397 | 277,524 | 100,184 | |||||||||||||||||||
Acquisition-related, integration, and spin-off related expenses allocated to common stockholders | — | 3,880 | — | 21,430 | |||||||||||||||||||
Spin-off related expenses allocated to common stockholders | — | 283 | — | 1,789 | |||||||||||||||||||
Amortization of intangibles allocated to common stockholders | 33,486 | 36,833 | 101,749 | 110,190 | |||||||||||||||||||
Share-based compensation allocated to common stockholders | 9,315 | 3,929 | 25,496 | 12,031 | |||||||||||||||||||
Gain on divestitures and related transaction costs allocated to common stockholders | (12,999) | — | (13,012) | — | |||||||||||||||||||
Income taxes related to the above allocated to common stockholders (1) | (8,190) | (11,379) | (20,450) | (35,973) | |||||||||||||||||||
Non-GAAP net income attributable to common stockholders | $ | 129,717 | $ | 78,943 | $ | 371,307 | $ | 209,651 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
August 31, 2021 | August 31, 2020 | August 31, 2021 | August 31, 2020 | ||||||||||||||||||||
Diluted earnings per common share (“EPS”) (2) | $ | 2.08 | $ | 0.88 | $ | 5.35 | $ | 1.94 | |||||||||||||||
Acquisition-related and integration expenses | — | 0.08 | — | 0.42 | |||||||||||||||||||
Spin-off related expenses | — | 0.01 | — | 0.03 | |||||||||||||||||||
Amortization of intangibles | 0.64 | 0.71 | 1.96 | 2.14 | |||||||||||||||||||
Share-based compensation | 0.18 | 0.08 | 0.49 | 0.23 | |||||||||||||||||||
Gain on divestitures and related transaction costs | (0.25) | — | (0.25) | — | |||||||||||||||||||
Income taxes related to the above (1) | (0.16) | (0.23) | (0.40) | (0.70) | |||||||||||||||||||
Non-GAAP diluted EPS | $ | 2.49 | $ | 1.53 | $ | 7.15 | $ | 4.06 | |||||||||||||||
Weighted-average number of common shares - diluted (3) | 52,061 | 51,602 | 51,914 | 51,602 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
August 31, 2021 | August 31, 2020 | August 31, 2021 | August 31, 2020 | ||||||||||||||||||||
Net cash provided by operating activities | $ | 93,010 | $ | 91,376 | $ | 332,125 | $ | 388,577 | |||||||||||||||
Purchases of property and equipment | (42,111) | (37,008) | (112,869) | (106,249) | |||||||||||||||||||
Free cash flow | $ | 50,899 | $ | 54,368 | $ | 219,256 | $ | 282,328 |
Forecast | |||||||||||
Three Months Ended November 30, 2021 | |||||||||||
Low | High | ||||||||||
Operating income | $ | 149,600 | $ | 159,600 | |||||||
Amortization of intangibles | 34,000 | 34,000 | |||||||||
Share-based compensation | 11,400 | 11,400 | |||||||||
Non-GAAP operating income | $ | 195,000 | $ | 205,000 |
Cover |
Sep. 27, 2021 |
Jun. 23, 2021 |
---|---|---|
Cover [Abstract] | ||
Document Type | 8-K | |
Document Period End Date | Sep. 27, 2021 | |
Entity Registrant Name | CONCENTRIX CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-39494 | |
Entity Tax Identification Number | 27-1605762 | |
Entity Address, Address Line One | 44111 Nobel Drive | |
Entity Address, City or Town | Fremont | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94538 | |
City Area Code | 800 | |
Local Phone Number | 747-0583 | |
Written Communications | false | |
Soliciting Material | false | |
Pre-commencement Tender Offer | false | |
Pre-commencement Issuer Tender Offer | false | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | CNXC | |
Security Exchange Name | NASDAQ | |
Entity Emerging Growth Company | false | |
Entity Central Index Key | 0001803599 | |
Amendment Flag | false |
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