Revenues of $121 million and Gross Profit of 40%
BOSTON, Nov. 5 /PRNewswire-FirstCall/ -- Stream Global Services,
Inc., (NYSE Amex: SGS), a premium business process outsource (BPO)
service provider specializing in customer relationship management
services for Fortune 1000 companies, today announced consolidated
financial results for its 2009 third quarter ended September 30,
2009.
These results do not include any financial results for Stream's
purchase of eTelecare Global Solutions and the related financings
of approximately $300 million that were completed on October 1,
2009. Results for eTelecare and related financings will be included
for the period October 1, 2009 to December 31, 2009 in our fourth
quarter 2009 financial results.
GAAP Consolidated Results
On a GAAP basis, revenue for the three and nine months ended
September 30, 2009 was $121.9 million and $383.2 million,
respectively, as compared to $81.5 million in the three and nine
months ended September 30, 2008 due to our acquisition of Stream
Holdings Corporation on July 31, 2008.
GAAP net loss was $6.8 million and $7.6 million for the three
and nine months ended September 30, 2009, respectively, as compared
GAAP net loss of $0.9 million and net income of $0.9 million for
the three and nine months ended September 30, 2008.
Pro Forma Combined Consolidated Results
On a pro forma combined consolidated basis, (giving effect to the
Company's acquisition of SHC as if it occurs on January 1, 2008),
the Company posted revenue for the three and nine months ended
September 30, 2009 of $121.9 million and $383.2 million, as
compared to $124.5 million and $393.6 million in the three and nine
months ended September 30, 2008, respectively. Revenue for the nine
months ended September 30, 2008 included approximately $23 million,
from clients that were lost prior to the acquisition of SHC on July
31, 2008.
Stream's gross profit as a percentage of revenue increased to
40% and 42% in the three and nine months ended September 30, 2009,
respectively, compared to 37% and 36% in the three and nine months
ended September 30, 2008, respectively.
For the three and nine months ended September 30, 2009, adjusted
pro forma earnings before interest taxes depreciation and
amortization ("Adjusted EBITDA") increased 8% and 63% to $7.1
million and $33.5 million, respectively, compared to $6.6 million
and $20.6 million in the year-earlier periods. Adjusted EBITDA as a
percentage of revenue for the three and nine months ended September
30, 2009 was 5.8% and 8.7%, respectively, compared to 5.3% and 5.2%
for the three and nine months ended September 30, 2008. See
attached reconciliation for description of adjustments to EBIDTA
and reconciliation to net income.
Scott Murray, Chairman and Chief Executive Officer of Stream
said, "We are pleased with the progress we have made over the past
year. We have been able to improve our gross margins by 600 bps
over last year's nine-month comparable period and have won a number
of new accounts in the telecommunications, wireless and computing
segments. We have also further expanded our geographic footprint
into places such as Tunis, the Philippines and Cairo. During the
third quarter of 2009, we ramped both new client accounts and new
service centers. These activities required us to invest in shared
service, recruiting, training, and technology costs at a higher
rate than prior periods. These amounts were fully expensed during
the current quarter and will benefit future periods by higher
revenues and margins. We continue to see progress in our business,
however, the effects of the global recession are still impacting
our operations and resulting revenues from our clients. We expect
to see a very gradual improvement in our business over the next
several months due to both seasonal increases and improvements in
the general economic environment." Murray went on to say, "We are
also pleased to complete the combination with eTelecare on October
1, 2009 and financings totaling almost $300 million (including a
$200 million high yield bond and an undrawn $100 million Asset
Based Revolving Line of Credit). This now positions Stream with a
very broad geographic global footprint, including North America,
Latin America, Africa, Europe, India and the Philippines. With
approximately 30,000 employees in 50 global service centers we now
provide very diverse services for all of our global clients needs
ranging from sales services to customer care to technical support
and customer lifecycle management."
Stream will hold a conference call for investors on November 5,
2009 at 4:30 PM EST. Investors can participate by calling
800-344-6491, passcode: 8163948.
A replay of the call will be available through Thursday,
November 12, 2009 by calling 888-203-1112, and referencing
passcode: 8163948.
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.
|