BOSTON, Feb. 26, 2010 -- Stream Global Services, Inc.,
(NYSE Amex: SGS), a premium business process outsourcing (BPO)
service provider specializing in customer relationship management
and business process outsourcing services for many of the leading
Fortune 1000 companies, today announced consolidated financial
results for its 2009 fourth quarter and year ended December 31,
2009.
These results include the financial results for Stream's
combination with eTelecare Global Solutions, Inc. and related
financings that were completed on October 1, 2009. Pro forma
combined adjusted EBITDA is defined as earnings before interest,
taxes, depreciation, amortization, transaction related expenses and
non-cash stock compensation. Pro forma combined adjusted EBITDA is
a non-GAAP measure, however, Stream believes it provides useful
operating information on the business. Pro forma consolidated
information presents the two companies as if they were combined as
of the beginning of the respective fiscal period.
GAAP Consolidated Results
On a GAAP basis our results only include eTelecare for the period
from the combination on October 1, 2009 to December 31, 2009. Our
GAAP based revenues for the three months and year ended December
31, 2009 were $201.6 million and $584.8 million, respectively, as
compared to $129.8 million and $211.4 million in the three months
and year ended December 31, 2008, respectively.
GAAP net loss was $20.9 million and $28.6 million for the three
months and year ended December 31, 2009, as compared to GAAP net
loss was $0.1 million and net income of $0.8 million for the three
months and year ended December 31, 2008, respectively, primarily
because of combination related charges (including transaction
expenses, amortization of intangibles, non-cash stock based
compensation expense, restructuring and severance expense) as well
as debt related interest expense for the three months and year
ended December 31, 2009, respectively.
Pro Forma Combined Results
On a pro forma basis, reflecting the combination of Stream and
eTelecare's historical financial statements for a full year, with
no adjustments, as if the combination with eTelecare had been
completed as of January 1 Stream would have posted revenues for the
three months and year ended December 31, 2009 of $201.6 million and
$797.0 million as compared to $204.1 million and $823.2 million in
the three months and year ended December 31, 2008, respectively.
Revenue for the year ended December 31, 2009 included approximately
$23 million from customers that were lost prior to the acquisition
of Stream Holdings Corporation on July 31, 2008.
Gross margin increased to 42% and 43% in the three months and year
ended December 31, 2009, respectively, compared to 42% and 40% in
the three months and year ended December 31, 2008,
respectively.
For the three months and year ended December 31, 2009, adjusted
pro EBITDA was $17.2 million and $73.1 million compared to $16.7
million and $64.9 million in the three months and year ended
December 31, 2008, respectively.
During the 2009 fiscal year, Stream achieved a number of
milestone events, including the following:
- Combination of Stream and eTelecare on October 1, 2009
- Completion of a senior debt offering in a principal amount of
$200 million on October 1, 2009
- Completion of a $100 million Asset Based Revolving Line of
Credit on October 1, 2009
- Assembly of an experienced management team - many of whom were
former employees returning to Stream
- Successful launch of a number of new clients clients in the
technology, telecommunication and broadband, and software sectors
totaling over $120 million in expected annualized revenues once
fully ramped by the end of 2010;
- Opening of new service centers in the Philippines, Denmark,
Tunis and Egypt;
- Repurchase of approximately 20 million of our public warrants
for approximately $7 million in cash;
- Converted 7.5 million warrants in exchange for the issuance of
1 million shares of common stock; and
- Conversion of all of our preferred stock into common
stock.
Scott Murray, Chairman and Chief Executive Officer of Stream
said; "We are very pleased with the progress we have made on the
integration of eTelecare over the last few months. We have been
able to strengthen our client value propositions, combine our
management teams and personnel, integrate our systems and processes
and broaden our service offerings." Murray went on to say, "We are
also pleased that our integration cost saving activities are
expected to generate annualized savings of over $20 million as
planned. Over the past several months we have substantially
completed the integration of Stream and eTelecare and expect to
complete the final phase of administrative function consolidation
in the first quarter of 2010."
Stream will hold a conference call for investors on February 26 at
8:30 AM EST. Investors can participate by calling 1-877-852-6578
and referencing passcode #9653894.
A replay of the call will be available through Friday, March 5,
2010 by calling 1-888-203-1112 and referencing passcode:
9653894
Contact Information:
Nancy Finn
Global Marketing Communications
nancy.finn@stream.com
781-304-1846 About Stream Global Services
Stream Global Services is a premium business process outsource (BPO) service provider specializing
in customer relationship management including sales, customer care and technical support for Fortune
1000 companies. Stream is a trusted partner to some of the world's leading technology, computing,
telecommunications, retail, entertainment/media, and financial services companies. Our service programs
are delivered through a set of standardized best practices and sophisticated technologies by a highly
skilled workforce of approximately 30,000 employees based out of 50 solution centers in 22 countries
supporting more than 35 languages. Stream continues to expand its global presence and service offerings
to increase revenue, improve operational efficiencies and drive brand loyalty for its clients. To learn
more about the company and its complete service offering, please visit www.stream.com.
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