Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 05, 2023 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001031029 | |
Entity Registrant Name | StarTek, Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-12793 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-1370538 | |
Entity Address, Address Line One | 4610 South Ulster Street | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80237 | |
City Area Code | 303 | |
Local Phone Number | 262-4500 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | SRT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,323,930 |
Consolidated Statement of Incom
Consolidated Statement of Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue | $ 92,089 | $ 101,092 |
Cost of services | (79,129) | (87,302) |
Gross profit | 12,960 | 13,790 |
Selling, general and administrative expenses | (10,287) | (11,962) |
Impairment losses and restructuring/exit cost | (317) | 5 |
Operating income (loss) | 2,356 | 1,833 |
Share of income (loss) of equity accounted investee | 0 | (8) |
Interest expense and other income (expense), net | (2,077) | (1,730) |
Foreign exchange gains (losses), net | 72 | (224) |
Income (loss) from continuing operations before tax expenses | 351 | (129) |
Tax expenses | (909) | (638) |
Income (loss) from continuing operations, net of tax (A) | (558) | (767) |
Income (loss) before income tax expenses from discontinued operations | 3,661 | 2,508 |
Tax expenses | (1,184) | (1,455) |
Net income | 2,477 | 1,053 |
Income from continuing and discontinued operations | 1,919 | 286 |
Income (loss) from continuing operations (A) | ||
Income (loss) attributable to noncontrolling interests | 0 | 0 |
Income (loss) attributable to Startek shareholders | (558) | (767) |
Income (loss) from continuing operations, net of tax | (558) | (767) |
Income (loss) from discontinued operations (B) | ||
Income (loss) attributable to noncontrolling interests | 2,589 | 1,529 |
Income (loss) attributable to Startek shareholders | (112) | (476) |
less: Income (loss) from discontinued operations, net of tax | 2,477 | 1,053 |
Net income (loss) attributable to non-controlling interests | 2,589 | 1,529 |
Net income (loss) attributable to Startek shareholders | (670) | (1,243) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 1,919 | $ 286 |
Net income (loss) per common share from continuing operations | ||
Basic net income (loss) attributable to Startek shareholders (in dollars per share) | $ (0.01) | $ (0.02) |
Diluted net income (loss) attributable to Startek shareholders (in dollars per share) | (0.01) | (0.02) |
Basic net income (loss) attributable to Startek shareholders (in dollars per share) | (0.01) | (0.03) |
Diluted net income (loss) attributable to Startek shareholders (in dollars per share) | (0.01) | (0.03) |
Net income (loss) per common share from discontinued operations | ||
Basic net income (loss) attributable to Startek shareholders (in dollars per share) | 0 | (0.01) |
Diluted net income (loss) attributable to Startek shareholders (in dollars per share) | $ 0 | $ (0.01) |
Weighted average common shares outstanding | ||
Shares used in basic earnings per share calculation (in shares) | 40,321 | 40,338 |
Diluted (in shares) | 40,321 | 40,338 |
Consolidated Statements of Othe
Consolidated Statements of Other Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net income (loss) (A+B) | $ 1,919 | $ 286 |
Net income (loss) attributable to non-controlling interests | 2,589 | 1,529 |
Net income (loss) attributable to Startek shareholders | (670) | (1,243) |
Other comprehensive income (loss), net of taxes from continuing operations: | ||
Foreign currency translation adjustments | (124) | 546 |
Pension amortization | 124 | 64 |
Other comprehensive income (loss) from continuing operations | 0 | 610 |
Other comprehensive income (loss), net of taxes from discontinued operations: | ||
Foreign currency translation adjustments | 0 | 1 |
Pension amortization | 1,125 | (1,200) |
Other comprehensive income (loss) from discontinuing operations | 1,125 | (1,199) |
Other comprehensive income (loss) from continuing and discontinuing operations | 1,125 | (589) |
Other comprehensive income (loss), net of taxes from continuing operations | ||
Attributable to noncontrolling interest | 0 | 0 |
Other comprehensive income (loss) from continuing operations | 0 | 610 |
Other Comprehensive Income (Loss) from Continuing Operations, Net of Tax | 0 | 610 |
Other comprehensive income (loss), net of taxes from discontinued operations | ||
Attributable to noncontrolling interests | 614 | (655) |
Attributable to Startek shareholders | 511 | (544) |
Other Comprehensive Income (Loss) from Discontinued Operations, Net of Tax | 1,125 | (1,199) |
Comprehensive income (loss) from continuing and discontinuing operations | ||
Attributable to noncontrolling interests | 3,203 | 874 |
Attributable to Startek shareholders | (159) | (1,177) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 3,044 | $ (303) |
Consolidated Balance Sheet (Cur
Consolidated Balance Sheet (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 15,770 | $ 22,457 |
Restricted cash | 9,172 | 49,946 |
Trade accounts receivables, net | 48,141 | 47,138 |
Unbilled revenue | 26,373 | 24,207 |
Prepaid expenses and other current assets | 14,556 | 9,159 |
Assets classified as held for sale | (205,883) | (202,831) |
Total current assets | 319,895 | 355,738 |
Non-current assets | ||
Property, plant and equipment, net | 22,784 | 22,945 |
Operating lease right-of-use assets | 38,842 | 36,450 |
Intangible assets, net | 77,184 | 79,745 |
Goodwill | 120,505 | 120,505 |
Deferred tax assets, net | 3,347 | 2,771 |
Prepaid expenses and other non-current assets | 6,794 | 7,889 |
Total non-current assets | 269,456 | 270,305 |
Total assets | 589,351 | 626,043 |
Current liabilities | ||
Trade accounts payables | 5,783 | 2,428 |
Accrued expenses | 30,470 | 29,707 |
Short term debt | 14,878 | 14,267 |
Current maturity of term loan | 48,854 | 120,466 |
Current maturity of operating lease liabilities | 15,403 | 14,492 |
Other current liabilities | 19,014 | 17,615 |
Liabilities classified as held for sale | 86,953 | 89,486 |
Total current liabilities | 221,355 | 288,461 |
Non-current liabilities | ||
Long term debt | 66,943 | 41,175 |
Operating lease liabilities | 27,895 | 26,651 |
Other non-current liabilities | 2,801 | 2,682 |
Deferred tax liabilities, net | 15,451 | 15,508 |
Total non-current liabilities | 113,090 | 86,016 |
Total liabilities | 334,445 | 374,477 |
Stockholders’ equity | ||
Common stock, 60,000,000 non-convertible shares, $0.01 par value, authorized; 41,133,224 and 41,098,456 shares issued as of March 31, 2023 and December 31, 2022 respectively. | 411 | 411 |
Additional paid-in capital | 293,869 | 293,472 |
Accumulated deficit | (87,073) | (86,302) |
Treasury stock, 839,214 shares as of March 31, 2023 and December 31, 2022, at cost | (3,749) | (3,749) |
Accumulated other comprehensive loss | (15,547) | (16,058) |
Equity attributable to Startek shareholders | 187,911 | 187,774 |
Non-controlling interest | 66,995 | 63,792 |
Total stockholders’ equity | 254,906 | 251,566 |
Total liabilities and stockholders’ equity | $ 589,351 | $ 626,043 |
Consolidated Balance Sheet (C_2
Consolidated Balance Sheet (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares issued (in shares) | 41,133,224 | 41,098,456 |
Treasury stock, shares (in shares) | 839,214 | 839,214 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Operating activities | |||
Income from continuing and discontinued operations | $ 1,919 | $ 286 | |
less: Income (loss) from discontinued operations, net of tax | 2,477 | 1,053 | |
Income (loss) from continuing operations, net of tax | (558) | (767) | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 5,238 | 5,831 | |
Profit on sale of property, plant and equipment | (1) | (19) | |
Additions during the period | 196 | (56) | |
Amortization of debt issuance costs (including loss on extinguishment of debt) | 40 | 146 | |
Amortization of call option premium | 0 | 360 | |
Mark to market gain on derivative instrument | (87) | 0 | |
Share-based compensation expense | 380 | 428 | |
Deferred income taxes | (209) | (80) | |
Share of income (loss) of equity accounted investee | 0 | 8 | |
Changes in operating assets and liabilities: | |||
Trade accounts receivables (including unbilled revenue) | (3,634) | 5,533 | |
Prepaid expenses and other assets | (3,553) | (3,815) | |
Trade accounts payable | 3,333 | (1,004) | |
Income taxes, net | (342) | (917) | |
Accrued expenses and other liabilities | 1,710 | (5,727) | |
Net cash generated from/used in by operating activities from continuing operations | 2,513 | (77) | |
Net cash generated from/used in operating activities from discontinued operations | (6,425) | 1,586 | |
Net cash generated from operating activities | (3,912) | 1,509 | |
Investing activities | |||
Purchase of property, plant and equipment and intangible assets, net | (2,525) | (1,576) | |
Net cash generated from/used in investing activities from continuing operations | (2,525) | (1,576) | |
Net cash generated from/used in investing activities from discontinued operations | (3,518) | (1,271) | |
Net cash generated from/used in investing activities | (6,043) | (2,847) | |
Financing activities | |||
Proceeds from the issuance of common stock | 17 | 140 | |
Payments of long term debt | (45,466) | 0 | |
Proceeds from a line of credit, net | 594 | 0 | |
Payments of other borrowings, net | (418) | (558) | |
Common stock repurchases | 0 | (1,271) | |
Net cash generated from/used in financing activities from continuing operations | (45,273) | (1,689) | |
Net cash generated from/used in financing activities from discontinued operations | (132) | (84) | |
Net cash generated from/used in financing activities | (45,405) | (1,773) | |
Net increase in cash and cash equivalents | (55,360) | (3,111) | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (272) | (37) | |
Cash and cash equivalents and restricted cash at beginning of period | 115,146 | 55,396 | $ 55,396 |
Cash and cash equivalents and restricted cash at end of period | 59,514 | 52,248 | 115,146 |
Less: Cash and cash equivalents from discontinued operations | (34,572) | (23,368) | |
Cash and cash equivalents and restricted cash of continuing operations at end of period | 24,942 | 28,880 | |
Components of cash and cash equivalents and restricted cash | |||
Balances with banks | 15,770 | 25,834 | $ 22,457 |
Restricted cash | 9,172 | 3,046 | |
Total cash and cash equivalents and restricted cash | 24,942 | 28,880 | |
Supplemental disclosure of cash flow information | |||
Cash paid for interest and other finance cost | 3,759 | 2,313 | |
Cash paid for income taxes | 1,103 | 1,675 | |
Supplemental disclosure of non-cash activities | |||
Non-cash share-based compensation expenses | $ 380 | $ 428 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, Adjustment [Member] Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Treasury Stock, Common [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Treasury Stock, Common [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 2021 | 40,893,396 | 412,769 | ||||||||||||||||||
Balance at Dec. 31, 2021 | $ 409 | $ (1,912) | $ 291,537 | $ (84,043) | $ (6,816) | $ 0 | $ (3,871) | $ 195,304 | $ 58,016 | $ 253,320 | ||||||||||
Issuance of common stock (in shares) | 59,825 | 0 | ||||||||||||||||||
Issuance of common stock | $ 1 | $ 0 | 139 | 0 | 0 | 0 | 0 | 140 | 0 | 140 | ||||||||||
Income (loss) from continuing operations, net of tax | 0 | 0 | 0 | (767) | 0 | 0 | 0 | (767) | 0 | (767) | ||||||||||
less: Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | (476) | 0 | 0 | 0 | (476) | 1,529 | 1,053 | ||||||||||
Other Comprehensive Income (Loss) from Continuing Operations, Net of Tax | 0 | 0 | 0 | 0 | 546 | 0 | 64 | 610 | 0 | 610 | ||||||||||
Other Comprehensive Income (Loss) from Discontinued Operations, Net of Tax | $ 0 | $ 0 | 0 | 0 | 1 | 0 | (545) | (544) | (655) | (1,199) | ||||||||||
Repurchase of common stock (in shares) | 0 | 259,407 | ||||||||||||||||||
Repurchase of common stock | $ 0 | $ (1,271) | 0 | 0 | 0 | 0 | 0 | (1,271) | 0 | (1,271) | ||||||||||
Share-based compensation expenses | $ 0 | $ 0 | 428 | 0 | 0 | 0 | 0 | 428 | 0 | 428 | ||||||||||
Balance (in shares) at Mar. 31, 2022 | 40,953,221 | 672,176 | ||||||||||||||||||
Balance at Mar. 31, 2022 | $ 410 | $ (3,183) | 292,104 | (85,286) | (6,269) | 0 | (4,352) | 193,424 | 58,890 | 252,314 | ||||||||||
Balance (in shares) at Dec. 31, 2022 | 41,098,456 | 839,214 | ||||||||||||||||||
Balance at Dec. 31, 2022 | $ 0 | $ 0 | $ 0 | $ (101) | $ 0 | $ 0 | $ 0 | $ (101) | $ 0 | $ (101) | $ 411 | $ (3,749) | 293,472 | (86,302) | (11,781) | 0 | (4,277) | 187,774 | 63,792 | 251,566 |
Issuance of common stock (in shares) | 34,768 | 0 | ||||||||||||||||||
Issuance of common stock | $ 0 | $ 0 | 17 | 0 | 0 | 0 | 0 | 17 | 0 | 17 | ||||||||||
Share-based compensation expenses | 0 | 0 | 380 | 0 | 0 | 0 | 0 | 380 | 0 | 380 | ||||||||||
Income (loss) from continuing operations, net of tax | 0 | 0 | 0 | (558) | 0 | 0 | 0 | (558) | 0 | (558) | ||||||||||
less: Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | (112) | 0 | 0 | 0 | (112) | 2,589 | 2,477 | ||||||||||
Other Comprehensive Income (Loss) from Continuing Operations, Net of Tax | 0 | 0 | 0 | 0 | (124) | 0 | 124 | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income (Loss) from Discontinued Operations, Net of Tax | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 511 | 511 | 614 | 1,125 | ||||||||||
Repurchase of common stock (in shares) | 0 | 0 | ||||||||||||||||||
Repurchase of common stock | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Balance (in shares) at Mar. 31, 2023 | 41,133,224 | 839,214 | ||||||||||||||||||
Balance at Mar. 31, 2023 | $ 411 | $ (3,749) | $ 293,869 | $ (87,073) | $ (11,905) | $ 0 | $ (3,642) | $ 187,911 | $ 66,995 | $ 254,906 |
Note 1 - Overview and Basis of
Note 1 - Overview and Basis of Preparation | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. OVERVIEW AND BASIS OF PREPARATION Unless otherwise noted in this report, any description of "us," "we," or "our," refers to Startek, Inc. and its subsidiaries (the "Company"). Financial information in this report is presented in U.S. dollars. Business Startek is a leading global provider of technology-enabled business process management solutions. The Company provides omni-channel customer experience, digital transformation, and technology services to some of the finest brands globally. Startek is committed to impacting clients’ business outcomes by focusing on enhancing customer experience and digital enablement across all touchpoints and channels. Startek has more than 32,000 in 11 countries . The Company services over 140 clients The Company offers a repository of digital and omnichannel solutions based on decades of experience in driving growth by putting the customer at the center of our business. Because no one solution fits all, we have crafted solution delivery to suit a variety of industries. Startek has delivery campuses across India, United States, Malaysia, Philippines, Australia, South Africa, Canada During the previous year, the Company had classified Middle East and Argentina operations as 'Held for Sale and Discontinued Operations' and accordingly discussion in the business section pertains to continuing operations of the Company. Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. These consolidated financial statements reflect all adjustments (consisting only of normal recurring entries, except as noted) which, in the opinion of management, are necessary for fair presentation. The results of operations for interim periods are not necessarily indicative of full-year results. The consolidated financial statements reflects the financial results of all subsidiaries that are more than 50% owned and over which the Company exerts control. When the Company does not have majority ownership in an entity but exerts significant influence over that entity, the Company accounts for the entity under the equity method of accounting. All intercompany balances are eliminated on consolidation. Where our ownership of a subsidiary was less than 100%, the non-controlling interest is reported in our consolidated balance sheet. The non-controlling interest in our consolidated net income is reported as "Net income attributable to non-controlling interests" in our consolidated statement of income (loss). As of December 31, 2022, the consolidated balance sheet included herein was derived from the audited financial statements as of that date but does not include all disclosures including notes required by U.S. GAAP. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. The figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to make them comparable. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Use of Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles, impairment of goodwill, valuation allowances for deferred tax assets, leases, provision for doubtful debts and restructuring costs. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable and management has made assumption about the possible effect of the global macroeconomic conditions, including heightened inflation, changes to fiscal and monetary policy, higher interest rates, currency fluctuations, labor shortages & challenges in supply chain, have the potential to negatively impact the Company. There current macroeconomic conditions may continue or aggravate and could cause the United States economy or other global economies to experience an economic slowdown or recession. We anticipate our business and operations could be materially adversely affected by a prolonged recession in the United States or other major global economy. Although these estimates and assumptions are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. Revenue The Company utilizes a five-step process given in ASC 606, for revenue recognition that focuses on the transfer of control, rather than the transfer of risks and rewards. It also provided additional guidance on accounting for contract acquisition and fulfillment costs. Refer Note 5 on "Revenue" for further information. Allowance for Expected Credit Losses The Company maintains an allowance for current expected credit losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses which are adjusted to current market and economic conditions and a reasonable and supportable forecast. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Refer Note 5 on "Revenue" for further information. Leases We determine if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, current maturity of operating lease liabilities, and operating lease liabilities in our consolidated balance sheet. Finance leases are included in property plant and equipment, long-term debt, accrued expenses and other current liabilities in our consolidated balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the balance lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the date of initial application on determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain to exercise that option. Lease expense is recognized on a straight-line basis over the lease term. ASC 842 requires an entity to apply the guidance on impairment of long-lived assets in ASC 360 to right-of-use assets. Therefore, right-of-use assets must be monitored for impairment, like other long-lived non-financial assets, regardless of whether the lease is an operating lease or a finance lease. When impairment indicators exist, an asset (asset group) should be tested to determine whether there is an impairment. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Property, Plant and Equipment Property, plant, and equipment, are stated at depreciated cost. Additions and improvement activities are capitalized. Maintenance and repairs are expensed as incurred. Assets held under finance leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease. Depreciation and amortization is computed using the straight-line method based on their estimated useful lives, as follows: Estimated Useful Life Buildings and building improvements 3-20 years Telephone and computer equipment 3-10 years Furniture, fixtures, and miscellaneous equipment 3-15 years Software 1-7 years We depreciate leasehold improvements associated with operating leases over the shorter of 15 years or remaining life of the lease. Amortization expense related to assets recorded under capital leases is included in depreciation and amortization expense. Impairment of Long-Lived Assets The Company evaluates potential impairments of long-lived assets when it determines that the carrying value of a long-lived asset may not one not, may may not Goodwill and Intangible Assets Goodwill Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not not not not 4, 7, Intangible Assets We amortize all acquisition-related intangible assets that are subject to amortization using the straight-line method over the estimated useful life based on economic benefit as follows: Estimated Useful Life Customer Relationship 8 - 13.5 years Brand 13.5 years Trademarks 15 years Developed Technology 5 years We perform a review of intangible assets to determine if facts and circumstances indicate that the useful life is shorter than we had originally estimated or that the carrying amount of assets may not 4, Fair Value Measurements The carrying value of our cash and cash equivalents, accounts receivable, notes receivable, accounts payable, and restructuring liabilities approximate fair value because of their short-term nature. Our debt has a variable interest rate, so the carrying amount approximates fair value because interest rates on these instruments approximate the interest rate on debt with similar terms available to us. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The levels of the fair value hierarchy are described below: Level 1 - Quoted prices for identical instruments traded in active markets. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Unobservable inputs that cannot be supported by market activity and that are significant to the fair value of the asset or liability, such as the use of certain pricing models, discounted cash flow models and similar techniques that use significant assumptions. These unobservable inputs reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Refer to Note 9, “Fair Value Measurements,” for additional information on how we determine fair value for our assets and liabilities. Cash and cash equivalents and restricted cash We consider cash equivalents to be short-term, highly liquid investments readily convertible to known amounts of cash and so near their maturity at purchase that they present insignificant risk of changes in value because of changes in interest rates. Restricted cash consists of margin money deposit that is contractually restricted as to usage or withdrawal. Borrowing costs Borrowing costs include interest as well as ancillary costs such as amortization of financing fees or charges and premium or discount on the borrowings. Borrowing costs (loan processing fee) are capitalized and amortized in the consolidated statement of income using effective interest method. Refer to Note 10, Interest and dividend income Interest revenue is recognized on an accrual basis taking into account the interest rates applicable to the financial assets. Dividend income is recognized when the Company’s right to receive such income is established by the reporting date. Government grants and subsidies Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received, and the Company will comply with all attached conditions. Government grants received on capital expenditure are generally deducted in arriving at the carrying amount of the asset purchased. Grants for revenue expenditure are netted against the cost incurred by the Company. Where retention of a government grant is dependent on the Company satisfying certain criteria, it is initially recognized as deferred income. When the criteria for retention have been satisfied, the deferred income balance is netted against the asset purchased. Government grant in the nature of export incentive is recognized as revenue. Restructuring Charges On an ongoing basis, management assesses the profitability and utilization of our facilities and in some cases, management has chosen to close facilities. Severance payments that occur from reductions in the workforce are in accordance with our post-employment policy and/or statutory requirements that are communicated to all employees; therefore, severance liabilities are recognized when termination of employment is communicated to the employee(s). Other liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, instead of upon commitment to an exit plan. A significant assumption used in determining the amount of the estimated liability for closing a facility is the estimated liability for future lease payments on vacant facilities. We determine our estimate of sublease payments based on our ability to successfully negotiate early termination agreements with landlords, a third-party broker, or management’s assessment of our ability to sublease the facility based upon the market conditions in which the facility is located. If the assumptions regarding early termination and the timing and amounts of sublease payments prove to be inaccurate, we may be required to record additional losses, or conversely, a future gain. Refer to Note 7 Derivative Instruments and Hedging Activities In the ordinary course of business, the Company uses certain derivative financial instruments to reduce business risks which arise from its exposure to foreign exchange and interest rate fluctuations associated with borrowings (cash flow hedges). When the Company opts to undertake hedge accounting, the Company documents, at the inception of the hedging transaction, the economic relationship between hedging instruments and hedged items including whether the hedging instrument is expected to offset changes in cash flows or fair values of hedged items. The Company documents its risk management objective and strategy for undertaking various hedge transactions at the inception of each hedge relationship. Derivatives are initially recognised at fair value on the date the derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged and the type of hedge relationship designated. Cash flow hedges that qualify for hedge accounting The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges, is recognised through OCI and as cash flow hedging reserve within equity, limited to the cumulative change in fair value of the hedged item on a present value basis from the inception of the hedge. The gain or loss relating to the ineffective portion is recognised immediately in the Statement of Income (loss). Amounts accumulated in equity are reclassified to the Statement of Income (loss). Derivatives that are not designated as hedges When derivative contracts to hedge risks are not Presentation The entire fair value of a derivative contract is classified as a noncurrent asset or liability when the remaining maturity of the contract exceeds 12 not 12 8 Foreign Currency Matters The Company has operations in Argentina (classified as discontinued operations) and its functional currency has historically been the Argentine Peso. The Company monitors inflation rates in countries where it operates as required by U.S. GAAP. Under ASC 830-10-45-12, an economy must be classified as highly inflationary when the cumulative three-year rate exceeds 100%. Considering the inflation data of Argentina, the Company has considered Argentina to be highly inflationary beginning on July 1, 2018. In accordance with ASC 830, the functional currency of the Argentina business has been changed to USD, which requires re-measurement of the local books to USD. Exchange gains and losses are recorded through net income instead of through other comprehensive income as had been done historically. Translation adjustments from periods prior to the change in functional currency were not removed from equity. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income taxes reflect net effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. We are subject to foreign income taxes on our foreign operations. We are required to estimate our income taxes in each jurisdiction in which we operate. This process involves estimating our actual current tax exposure, together with assessing temporary differences resulting from differing treatment of items for tax and financial reporting purposes. The tax effects of these temporary differences are recorded as deferred tax assets or deferred tax liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the consolidated statement of income (loss) in the period during which such rates are enacted. We record a valuation allowance when it is more likely than not not We consider all available evidence to determine whether it is "more likely than not" We do not not not Employee benefits Contributions to defined contribution plans are charged to consolidated statements of operations in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. The Company reviews its assumptions on quarterly basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. Stock-Based Compensation We recognize expenses related to all share-based payments to employees, including grants of employee stock options, based on the grant-date fair values amortized straight-line over the period during which the employees are required to provide services in exchange for the equity instruments. We include an estimate of forfeitures when calculating compensation expenses. We use the Black-Scholes method for valuing stock-based awards. See Note 11, Net Income (Loss) Per Share Basic earnings per share are computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted earnings per share, the treasury stock method is used for stock-based awards except where the results would be anti-dilutive. When a net loss is reported, potentially issuable common shares are generally excluded from the computation of diluted earnings per share as their effect would be anti-dilutive. Refer to Note 6, Assets Held for Sale and Discontinued Operations The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the business is sold and classified as held for sale, in accordance with the criteria of Accounting Standard Codification ("ASC") Topic 205-20 "Presentation of Financial Statements - Discontinued Operations" and ASC Topic 360-10 "Impairment and Disposal of Long Lived Assets". The results of discontinued operations are reported in Income from Discontinued Operations, net of tax in the accompanying Consolidated Statement of Income for the current and prior period and include any gain or loss recognized on closing, or adjustment of the carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value less cost to sell, a loss is recognized. Assets and liabilities related to a business classified as held for sale are segregated in the current and prior-period balance sheet. All assets and liabilities of the operations classified as held for sale are disclosed as current assets and liabilities in the current year and previous year classification has been retained. The Company allocate interest cost on Debt that is required to be repaid as a result of disposal to discontinued operations. Interest cost on Corporate Debt not directly attributable to discontinued operations is allocated between continuing and discontinued operations in the ratio mentioned in ASC 205-20-45-7 which as follows: Net assets to be sold or discontinued less debt that is required to be paid as a result of the disposal / The sum of total net assets of the entity plus debt other than: 1) debt of the discontinued operations that will be assumed by the buyer; 2) debt that is required to be paid as a result of the disposal transaction; and 3) debt that can be directly attributable to other operations of the entity. If a business is classified as held for sale after the balance sheet but before the financial statements are issued or are available to be issued, the business continues to be classified as held and used in those financial statements when issued or when available to be issued. Refer “Note 3A & 3B – "Discontinued Operations and Held for Sale" in our consolidated financial statements included elsewhere in this report for additional information and disclosures. Changes in Accounting Policies Except as described below, the Company has applied accounting policies consistently to all periods presented in these consolidated financial statements. The Company adopted ASC Topic 326, Financial Instruments—Credit Losses (“Topic326”), effective January 1, 2023. As a result of the Company’s adoption of this new standard, current expected credit losses(“CECL”) are measured using lifetime “expected credit loss” methodology, replacing the incurred loss model that recognized losses only when they became probable and estimable. The Company changed its accounting policy for recognition and measurement of CECL as detailed below. Topic 326 is applicable to financial assets measured at amortized cost. It requires historical loss data to be adjusted to reflect changes in asset-specific considerations, current conditions and reasonable and supportable forecasts of future economic conditions. To analyse credit losses on financial assets, the Company applied aging Schedule method to determine expected credit losses. The Company applied Topic 326 using the modified retrospective transition approach, which involves recognizing the cumulative effect of initial adoption of Topic 326 as an adjustment to its opening retained earnings as of January 1, 2023.Therefore, comparative information prior to the adoption date has not been adjusted. Recent Accounting Pronouncements In March 2020, No. 2020 04, 848 December 31, 2022. December 2022, No. 2022 06, 848 848, 848 December 31, 2024. 2020 04. |
Note 3A - Discontinued Operatio
Note 3A - Discontinued Operations and Held for Sale - Contact Center Company | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | On November 10, 2022, the Company has accepted a final offer by Arabian Internet and Communications Services Company (Solutions) to acquire Startek’s indirect 51% ownership interest in its subsidiary Contact Center Company (CCC), which is the Company’s joint venture that operates in the Kingdom of Saudi Arabia. After consideration of the relevant facts, the Company concluded the assets and liabilities of its CCC component met the criteria for classification as held for sale. The Company concluded that the actual and proposed disposal activities represented a strategic shift that will have a major effect on the Company’s operations and financial results and qualified for presentation as discontinued operations in accordance with FASB Accounting Standards Codification (ASC) 205-20. Accordingly, the financial results of the CCC are presented in the Consolidated Statements of Operations as discontinued operations for all periods presented. Current and non-current assets and liabilities of the business not sold as of the balance sheet date are presented in the Consolidated Balance Sheet as current assets and liabilities held for sale for both periods presented. Interest expense on term loans allocated to discontinued operations represents interest expenses on term loans which were required to be settled upon the sale of the CCC. CCC was forming part of the 'Middle East' segment in the consolidated financial statements for the period ended March 31, 2022. Subsequently, on January 11, 2023, the Company entered into a definitive Sale and Purchase Agreement with Solutions. The Sale and Purchase Agreement provided for a transaction based on an enterprise value for CCC of $ 120 million (SAR 450 million), on a debt free and cash free basis, to be paid in cash at closing, subject to the adjustments set forth in the Sale and Purchase Agreement. The transaction has been approved by the General Authority for Competition (GAC) in the Kingdom of Saudi Arabia and the Company has also obtained consent from its lenders. On April 3, 2023, the Company completed its sale of ownership interest in “CCC” to “Solutions”. At closing, the Company received cash proceeds of approximately $68.9 million subject to true-up working capital adjustments to the amount paid on the closing date and tax payable on the transaction. Under the Sale and Purchase Agreement, the Company will act as a guarantor for the obligations of its indirect subsidiary that owns the Company’s interests in CCC. The following table summarizes the income statement information of discontinued operations: Statement of income (loss) Three Months Ended March 31, 2023 2022 Revenue 64,364 58,687 Cost of services (54,889 ) (51,672 ) Gross profit 9,475 7,015 Selling, general and administrative expenses (3,117 ) (2,684 ) Impairment losses and restructuring/exit cost (4 ) (30 ) Operating income 6,354 4,301 Interest expense and other income (expense), net* (1,174 ) (611 ) Foreign exchange gains (losses), net (10 ) (6 ) Income before tax expenses 5,170 3,684 Tax expenses (1,184 ) (1,455 ) Net income 3,986 2,229 *includes allocated interest. The following table summarizes the carrying values of the assets and liabilities classified as held for sale in our consolidated balance sheet: March 31, 2023 December 31, 2022 Assets Current assets Cash and cash equivalents 28,284 38,002 Restricted cash 5,735 4,374 Trade accounts receivables, net 33,853 24,794 Unbilled revenue 46,434 43,322 Prepaid and other current assets 4,696 5,971 Total current assets 119,002 116,463 Non-current assets Property, plant and equipment, net 4,449 3,656 Operating lease right-of-use assets 11,289 12,184 Goodwill 54,840 54,840 Deferred tax assets, net 4,880 4,914 Prepaid expenses and other non-current assets 3,670 3,127 Total non-current assets 79,128 78,721 Total assets classified as held for sale in the consolidated balance sheet 198,130 195,184 Liabilities Current liabilities Trade accounts payables 3,927 658 Accrued expenses 15,992 19,467 Current maturity of operating lease liabilities 6,283 6,752 Other current liabilities 28,912 36,129 Total current liabilities 55,114 63,006 Non-current liabilities Operating lease liabilities 4,211 4,702 Other non-current liabilities 17,053 11,817 Deferred tax liabilities, net 2,908 2,734 Total non-current liabilities 24,172 19,253 Total liabilities classified as held for sale in the consolidated balance sheet 79,286 82,259 Net cash flows attributable to the discontinued operations: March 31, 2023 March 31, 2022 Net cash generated from/used in operating activities (5,652 ) 3,699 Net cash used in investing activities (3,513 ) (1,280 ) Net cash (used in) / provided by financing activities - - Net Cash Inflow (9,165 ) 2,419 On December 14, 2022, the Company has entered into an engagement letter with M/S Estudio A & L LLC (‘the Firm’) pursuant to which the Firm would serve as a non-exclusive advisor in connection with the potential sale of Aegis Argentina. The Firm will perform services for the Company such as advice on the structure, negotiation strategy, valuation analyses, financial terms, and other financial matters etc. If required, the Firm will assist the Company in preparing a brief memorandum, for distribution to potential buyers, describing the Company and its business, operations, properties, financial condition, and prospects. The Firm to negotiate and execute on its behalf and/or the Company’s behalf confidentiality agreements with potential parties to a Transaction and to deliver confidential memoranda or other data furnished to the Firm by the Company for distribution to such parties. During the first quarter, the Company entered into discussions with potential buyers. The discussions are still ongoing and the Company expects to enter in diligence phase in near future. After consideration of the relevant facts, the Company concluded the assets and liabilities of Argentina met the criteria for classification as held for sale. The Company concluded the actual and proposed disposal activities represented a strategic shift that will have a major effect on the Company’s operations and financial results and qualified for presentation as discontinued operations in accordance with FASB Accounting Standards Codification (ASC) 205-20. Accordingly, the financial results of the Argentina are presented in the Consolidated Statements of Operations as discontinued operations for all periods presented. Current and non-current assets and liabilities of the business not sold as of the balance sheet date are presented in the Consolidated Balance Sheet as current assets and liabilities held for sale for both periods presented. Argentina was forming part of the 'Argentina and Peru' segment in the consolidated financial statements for the period ended March 31, 2022. The following table summarizes the income statement information of discontinued operations: Statement of income (loss) Three Months Ended March 31, 2023 2022 Revenue 6,134 7,538 Cost of services (6,255 ) (7,991 ) Gross profit (loss) (121 ) (453 ) Selling, general and administrative expenses (467 ) (530 ) Impairment losses and restructuring/exit cost (1,341 ) (1,382 ) Operating income (loss) (1,929 ) (2,365 ) Interest expense and other income (expense), net 534 1,367 Foreign exchange gains (losses), net (114 ) (178 ) Income (loss) (1,509 ) (1,176 ) Tax expense - - Net (loss) (1,509 ) (1,176 ) The following table summarizes the carrying values of the assets and liabilities classified as held for sale in our consolidated balance sheet as: March 31, 2023 December 31, 2022 Assets Current assets Cash and cash equivalents 553 367 Trade accounts receivables, net 2,524 2,483 Unbilled revenue 1,444 1,320 Prepaid and other current assets 1,806 1,988 Total current assets 6,327 6,158 Non-current assets Property, plant and equipment, net 859 854 Operating lease right-of-use assets 552 620 Prepaid expenses and other non-current assets 15 15 Total non-current assets 1,426 1,489 Total assets classified as held for sale in the consolidated balance sheet 7,753 7,647 Liabilities and Stockholders’ Equity Current liabilities Trade accounts payables 199 307 Accrued expenses 3,039 1,951 Short term debt 154 325 Current maturity of operating lease liabilities 394 398 Other current liabilities 2,583 2,674 Total current liabilities 6,369 5,655 Non-current liabilities Operating lease liabilities 163 226 Other non-current liabilities 1,135 1,346 Total non-current liabilities 1,298 1,572 Total liabilities classified as held for sale in the consolidated balance sheet 7,667 7,227 March 31, 2023 March 31, 2022 Net cash generated from / used in operating activities (773 ) (2,113 ) Net cash generated from / used in investing activities (5 ) 9 Net cash generated from / used in financing activities (132 ) (84 ) Net Cash outflow (910 ) (2,188 ) |
Note 4 - Goodwill and Intangibl
Note 4 - Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill The carrying value of goodwill is allocated to reporting units as follows: Reporting Units: March 31, 2023 December 31, 2022 Americas 60,128 60,128 India 12,554 12,554 Malaysia 43,678 43,678 Australia 4,145 4,145 Total 120,505 120,505 We perform a goodwill impairment analysis at least annually (in the fourth quarter of each year) unless indicators of impairment exist in interim periods. The assumptions used in the analysis are based on the Company’s internal budget. The Company projects revenue, operating margins, and cash flows for a period of five As of March 31, 2023, based on the qualitative assessment, we concluded that there is no impairment of goodwill. The following table presents the changes in goodwill during the three months ended March 31, 2023 and year ended December 31, 2022: March 31, 2023 December 31, 2022 Opening balance 120,505 128,557 Impairment - (8,052 ) Closing balance 120,505 120,505 Intangible Assets The following table presents our intangible assets: As of March 31, 2023 Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Customer relationships 66,220 28,871 37,349 6.5 Brand 49,500 19,643 29,857 7.1 Trademarks 13,210 4,137 9,073 7.5 Other intangibles 2,130 1,225 905 4.9 131,060 53,876 77,184 As of December 31, 2022 Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Customer relationships 66,220 27,484 38,736 6.5 Brand 49,500 18,740 30,760 7.1 Trademarks 13,210 3,917 9,293 7.5 Other intangibles 2,130 1,174 956 4.9 131,060 51,315 79,745 As of March 31,2023 based on the management assessment, we concluded that there is no impairment on the Company's intangible assets. Expected future amortization of intangible assets as of March 31, 2023 is as follows: Year ending December 31, Amount Remainder of 2023 7,786 2024 10,252 2025 10,252 2026 9,490 2027 8,549 Thereafter 30,855 |
Note 5 - Revenue
Note 5 - Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | The Company follows a five-step process in accordance with ASC 606, for revenue recognition that focuses on the transfer of control, rather than the transfer of risks and rewards. Contracts with Customers All of the Company's revenues are derived generally from written contracts with our customers. Our contracts document our customers' agreement to utilize our services and the relevant terms and conditions under which our services will be provided. Our contracts generally do not contain minimum purchase requirements nor do they include termination penalties. Our customers may generally cancel our contract, without cause, upon written notice (generally ninety days). While our contracts do have stated terms, because of the facts stated above, they are accounted for on a month-to-month basis. Our contracts give us the right to bill for services rendered during the period, which for most of our customers is a calendar month, with a few customers specifying a fiscal month. Our payment terms vary by client and generally range from due upon receipt to 60-90 days. Performance Obligations We have identified one main performance obligation for which we invoice our customers, which is to stand ready to provide care services for our customers’ clients. A stand-ready obligation is a promise that a customer will have access to services as and when the customer decides to use them. Ours is considered a stand-ready obligation because the delivery of the underlying service (that is, receiving customer contact and performing the associated care services) is outside of our control or the control of our customer. Our stand-ready obligation involves outsourcing of the entire customer care life cycle, including: • The identification, operation, management, and maintenance of facilities, IT equipment, and IT and telecommunications infrastructure • Management of the entire human resources function, including recruiting, hiring, training, supervising, evaluating, coaching, retaining, compensating, providing employee benefits programs, and disciplinary activities These activities are all considered an integral part of the production activities required in the service of standing ready to accept calls as and when they are directed to us by our clients. Revenue Recognition Methods Because our customers receive and consume the benefit of our services as they are performed and we have the contractual right to invoice for services performed to date, we have concluded that our performance obligation is satisfied over time. Accordingly, we recognize revenue for our services in the month they are performed. We are entitled to invoice for our services on a monthly basis. We invoice according to the hourly and/or per-transaction rates stated in each contract for the various activities we perform. Some contracts include opportunities to earn bonuses or include parameters under which we will incur penalties related to performance in any given month. Bonus or penalty amounts are based on the current month’s performance. Formulas are included in the contracts for the calculation of any bonus or penalty. There is no other performance in future periods that will impact the bonus or penalty calculation in the current period. We estimate the amount of the bonus or penalty using the “most likely amount” method and we apply this method consistently. The bonus or penalty calculated is generally approved by the client prior to billing (and revenue being recognized). The unbilled revenue, where the right to invoice has not accrued is recognized based on service delivery estimate. Practical expedients and exemptions Because the Company’s contracts are essentially month-to-month, we have elected the following practical expedients: • ASC 606-10-50-14 exempts companies from the disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less • ASC 340-40-25-4 allows companies to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. • ASC 606-10-32-2A allows an entity to make an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer (for example, sales, use, value-added, and some excise taxes) • ASC 606-10-55-18 allows an entity that has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date (for example, a service contract in which an entity bills a fixed amount for each hour of service provided), the entity may recognize revenue in the amount to which the entity has a right to invoice. Disaggregated Revenue Revenues by our clients' industry verticals for the three months ended March 31, 2023 and 2022 respectively: Three Months Ended March 31, Vertical 2023 2022 Telecom 23,985 24,343 E-commerce & Consumer 15,996 20,143 Financial & Business Services 13,379 13,135 Media & Cable 13,966 15,351 Travel & Hospitality 11,699 12,272 Healthcare & Education 6,646 8,633 Technology, IT & Related Services 3,271 3,619 Other verticals 3,147 3,596 Revenue 92,089 101,092 Allowance for expected credit losses On January 1, 2023, the Company adopted ASC Topic 326, ‘Financial Instruments-Credit Losses’. Accounts receivables, unbilled revenue and other financial assets are in the scope for which assessment is made. In calculating expected credit loss, the Company also considered past payment and recovery trends, and other related information for its customers to estimate the probability of default in the future. As a result of adoption of ASC 326, the Company recognized an incremental allowance for credit losses on its accounts receivable and unbilled revenue, resulting in decrease in these assets by $135, increase in deferred tax assets by $34 and a corresponding decrease in retained earnings by $101 as on January 1, 2023. Trade accounts receivables and Unbilled revenue As of March 31, 2023 As of December 31, 2022 Trade accounts receivables and Unbilled Revenue 77,877 74,377 Less: Allowance for expected credit loss (3,363 ) (3,032 ) Trade accounts receivables and Unbilled Revenue 74,514 71,345 The movement in allowance for current expected credit loss on Trade accounts receivables and Unbilled revenue for the period ended March 31, 2023 and December 31, 2022, is as follows: As of March 31, 2023 Balance at the beginning of the period 3,032 Transition period adjustment pursuant to ASC 326 135 Additions during the period 196 Balance at the end of the period 3,363 |
Note 6 - Net Income (Loss) Per
Note 6 - Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Basic earnings per common share are computed based on our weighted average number of common shares outstanding. Diluted earnings per share are computed based on our weighted average number of common shares outstanding plus the effect of dilutive stock options, non-vested restricted stock, and deferred stock units, using the treasury stock method. When a net loss is reported, potentially issuable common shares are excluded from the computation of diluted earnings per share as their effect would be anti-dilutive. For three months ended March 31, 2023 and 2022, the following number of shares were used in the computation of basic and diluted earnings per share calculation (in thousands): Three Months Ended March 31, 2023 2022 Shares used in basic earnings per share calculation 40,321 40,338 Effect of dilutive securities: Stock options - - Restricted stock/Deferred stock units - - Total effects of dilutive securities - - Shares used in dilutive earnings per share calculation 40,321 40,338 Three Months Ended March 31, 2023 2022 Anti-dilutive securities Stock options 2,231 3,030 |
Note 7 - Impairment Losses & Re
Note 7 - Impairment Losses & Restructuring Exit Cost | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | Impairment Loss As of March 31, 2023, based on the qualitative assessment, we concluded there is no impairment of goodwill. Restructuring / Exit Cost The table below summarizes the balance of accrued restructuring cost, voluntary/involuntary termination costs, and other exit-related costs, which are included in other accrued liabilities in our consolidated balance sheet. Employee related Facilities related Total Balance on December 31, 2022 39 - 39 Accruals/(reversals) 317 - 317 Payments (356 ) - (356 ) Balance as of March 31, 2023 - - - Employee related Facilities related Total Balance on December 31, 2021 310 155 465 Accruals/(reversals) 551 111 662 Payments (822 ) (266 ) (1,088 ) Balance on December 31, 2022 39 - 39 Employee related The Company has terminated service of number of employees working in Peru and U.S. as a part of restructuring activities and recognized a severance cost regarding those terminations. |
Note 8 - Derivative Instruments
Note 8 - Derivative Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Non-designated hedges In October 2022, we entered into interest rate cap contracts as required by our lenders. The duration of these contracts is until May 2024.These hedges are not designated hedges under ASC 815, Derivatives and Hedging. Unrealized gains and losses and changes in fair value of these derivatives are recognized as incurred in 'Interest expense and other income (expense), net' in Consolidated Statement of Income (loss). The following table presents these amounts for the three months ended March 31, 2023 and March 31, 2022. Derivatives not designated under ASC 815 For Three Months Ended March 31, 2023 For Three Months Ended March 31, 2022 Mark to Market gain on Interest rate cap 87 - |
Note 9 - Fair Value Measurement
Note 9 - Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The levels of the fair value hierarchy are described below: Level 1 - Quoted prices for identical instruments traded in active markets. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Unobservable inputs that cannot be supported by market activity and are significant to the fair value of the asset, liability, or equity such as the use of certain pricing models, discounted cash flow models, and similar techniques use significant assumptions. These unobservable inputs reflect our own estimates of assumptions that market participants would use in pricing the asset or liability: Derivative Instruments The values of our derivative instruments are derived from pricing models using inputs based upon market information, including contractual terms, market prices, and yield curves. The inputs to the valuation pricing models are observable in the market, and as such the derivatives are classified as Level 2 in the fair value hierarchy. The following tables set forth our assets and/or liabilities measured at fair value on a recurring basis by level within the fair value hierarchy. These balances are included in 'Prepaid and Other current assets' and/or 'Other current liabilities', respectively, on our balance sheet. As of March 31, 2023 Level 1 Level 2 Level 3 Total Assets: Interest rate cap - - - - Total fair value of assets measured on a recurring basis - - - - Liabilities: Interest rate cap - (26 ) - (26 ) Total fair value of liabilities measured on a recurring basis - (26 ) - (26 ) As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Interest rate cap - - - - Total fair value of assets measured on a recurring basis - - - - Liabilities: Interest rate cap - (113 ) - (113 ) Total fair value of liabilities measured on a recurring basis - (113 ) - (113 ) |
Note 10 - Debt
Note 10 - Debt | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | The below table presents details of the Company's debt: As of March 31, 2023 As of December 31, 2022 Short term debt Working capital facilities 14,878 14,267 Current portion of long term debt Current maturity of term loan 48,000 119,194 Current maturity of equipment loan 854 1,272 Total 63,732 134,733 Long term debt Term loan, net of debt issuance costs 66,943 41,175 Total 66,943 41,175 Term Loan and working capital facilities The Company has a number of working capital facilities in various countries in which it operates. These facilities provide for a combined borrowing capacity of approximately $28 million for a number of working capital products. These facilities bear interest at benchmark rate plus margins between 2.0% and 4.5% and are due on demand. These facilities are collateralized by various company assets and have a total outstanding balance of $14.8 million as of March 31, 2023. Under the Senior debt arrangement, the Company has secured term loan of $165 million. Under the arrangement, the term loan will bear a tiered interest rate and will range between LIBOR plus 375 to 450 basis points, subject to certain financial ratios. The Company is required to meet these financial ratios on a quarterly basis. As of March 31, 2023, the Company was in compliance with all financial covenants. The Adjusted Leverage (total net debt / adjusted EBITDA) in respect of the most recently completed relevant period was less than 2.25, hence the applicable margin was set at 375 basis points. On January 10, 2023, the Company has made a prepayment of $41.3 million against senior debt by utilising the proceeds received from redemption of interest in CSS Corp LP, according to clause 8.3 of the facilities agreement, in addition to the scheduled installment of $4.1 million, thus totaling to $45.4 million during the quarter. On April 3, 2023, an indirect subsidiary of the Company completed its previously announced sale of the Company’s indirect 51 percent ownership interest in CCC to Solutions. In accordance with the requirements of the facilities agreement, the Company was required to apply the proceeds received from the CCC disposal towards prepayment of the Company’s senior term loan facility. Gross proceeds received were $68.9 million. Which is subject to true up working capital adjustments and tax payable on the transaction. The Company had filed a consent request with the lenders under its facilities agreement relating to the application of $55 million of the proceeds arising out of the Company's disposal of its ownership interest in CCC, which was accepted by the lenders on April 19, 2023. As per the accepted consent request, the proceeds received pursuant to the disposal of CCC will be utilised in the following order of priority: (i) firstly, prepayment of the outstanding Revolving Facility Loans of an amount of $7 million (together with accrued and unpaid interest then outstanding on the Revolving Facility Loans), (ii) secondly, (in relation to the Term Loans) prepayment in full of the four (4) Repayment Instalments which would otherwise fall due on May 22, 2023, August 22, 2023, November 22, 2023 and February 22, 2024 (together with accrued and unpaid interest then outstanding on the Term Loans), and (iii) lastly, (in relation to the Term Loans) the balance proceeds from the CCC disposal to be applied against the remaining eight (8) repayment instalments on a pro rata basis. In April 2023, the Company has applied $55 million of the proceeds in making a prepayment of $48 million against the senior debt and $7 million against the revolving credit facilities. Accordingly, senior term loan principal repayment schedule has been revised as below: Years Amount Remainder of 2023* 48,000 2024 18,403 2025 42,940 2026 6,067 Total 115,410 * Paid on April 21, 2023 Debt issuance cost represents the amount paid to the Company’s counsel and other third parties and was being amortized over the period of the new term loan. Following table presents the changes in debt issuance cost during the three months ended March 31, 2023 and the year ended December 31, 2022: March 31, 2023 December 31, 2022 Opening balance 507 2,332 Less: Amortization of debt issuance cost* (40 ) (1,825 ) Closing balance 467 507 *includes one time amortisation of $1,260 during period ended December 31, 2022. Equipment Loan On November 2, 2020, the Company executed Master Equipment Finance Agreement to finance purchase of equipment for $4 million at the interest of 5.27% per annum with a maturity date 34 months after the date of first utilization of equipment loan. The amounts outstanding as at March 31, 2023 is $0.9 million. Non-recourse factoring We have entered into factoring agreements with financial institutions to sell certain of our accounts receivable under non-recourse agreements. Under the arrangement, the Company sells the trade receivables on a non-recourse basis and accounts for the transactions as sales of receivables. The applicable receivables are removed from the Company's consolidated balance sheet when the Company receives the cash proceeds. We do not service any factored accounts after the factoring has occurred. We utilize factoring arrangements as part of our financing for working capital. The balance of funds received from factored receivables under these agreements was 17.5 million and 18.09 million as of March 31, 2023 and December 31, 2022 respectively. |
Note 11 - Share-based Compensat
Note 11 - Share-based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | Share-based compensation Our share-based compensation arrangements include grants of stock options, restricted stock units and deferred stock units under the Startek, Inc. 2008 Equity Incentive Plan and our Employee Stock Purchase Plan. The compensation expense that has been charged against income for the three months ended March 31, 2023, was $380 $2,178 million 2.02 |
Note 12 - Accumulated Other Com
Note 12 - Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | Accumulated other comprehensive loss consists of the following items: Foreign Currency Translation Adjustments Defined Benefit Plan Equity attributable to Startek shareholders Non-controlling interests Total Balance on December 31, 2022 (11,781 ) (4,277 ) (16,058 ) (4,601 ) (20,659 ) Continuing Operations Foreign currency translation (124 ) - (124 ) - (124 ) Pension amortization* - 124 124 - 124 Discontinued Operations Pension amortization* - 511 511 614 1,125 Balance at March 31, 2023 (11,905 ) (3,642 ) (15,547 ) (3,987 ) (19,534 ) *Pension amortisation is net of tax impact of $97 and $128 in respect of continued and discontinued operations respectively. |
Note 13 - Segment and Geographi
Note 13 - Segment and Geographical Information | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | The Company provides business process outsourcing services (“BPO”) to clients in various industries and geographical locations. Our approach is focused on providing our clients with the best possible combination of services and delivery locations to meet our clients' needs in the best and most efficient manner. Our Global Chief Executive Officer (CEO) who has been identified as the Chief Operating Decision Maker ("CODM"), reviews financial information mainly on a geographical basis. Our operating business model is focused on the geographies in which we operate. Our CODM reviews the performance and makes resource allocation geography-wise, hence the geographical level represents the operating segments of the Company. In the previous year with operations in Middle east and Argentina being considered as held for sale and discontinued operations, we identified following geographies as reportable segments; Three Months Ended March 31, 2023 2022 Revenue Americas 44,477 45,415 India & Sri Lanka 23,247 27,961 Malaysia 10,582 11,280 Australia 8,988 9,480 South Africa 4,766 6,190 Rest of World 29 766 Total 92,089 101,092 Three Months Ended March 31, 2023 2022 Operating income (loss) Americas 2,125 (2,319 ) India & Sri Lanka 238 3,467 Malaysia 2,890 2,026 Australia 560 1,101 South Africa 227 1,178 Rest of World (1,123 ) (559 ) Segment operating income 4,917 4,894 Startek consolidation adjustments Private offer transaction cost - (500 ) Intangible amortization (2,561 ) (2,561 ) Total operating income 2,356 1,833 A single client in the Americas segment accounted for 10% of the consolidated total net revenue during the three months ended March 31, 2023 and 2022, respectively. Property, plant and equipment, net by geography based on the location of the assets are presented below: As of As of March 31, 2023 December 31, 2022 Property, plant and equipment, net Americas 8,912 9,718 India & Sri Lanka 9,465 8,340 Malaysia 2,208 2,390 Australia 729 829 South Africa 1,322 1,508 Rest of World 148 160 Total 22,784 22,945 Investment in Equity Accounted Investees On February 25, 2021, the Company had made a $25 million investment in CSS Corp LLP (“an Investment Limited Liability Partnership”), the Company accounted this investment under the equity accounted investee method of accounting in accordance with ASC 323-30-S99-1. The CODM receives a partnership statement of CSS Corp LP on quarterly basis and evaluates the carrying value of the investment in equity accounted investees. On December 27, 2022, the Company had redeemed its investment in CSS Corp LP and received proceeds of $45.6 million and recognized a gain on sale of investment of $8.4 million. |
Note 14 - Leases
Note 14 - Leases | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | We have operating and finance leases for service centers, corporate offices, and certain equipment. Our leases have remaining lease terms of 1 year to 9 years, some of which include options to extend the leases for up to 3-5 years, and some of which include options to terminate the leases within 1 year. The components of lease expense were as follows: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Operating lease cost 4,380 5,289 Finance lease cost Amortization of right-of-use assets 38 140 Interest on lease liabilities - 60 Total finance lease cost 38 200 Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 4,987 5,867 Operating cash flow from finance leases - 60 Financing cash flows from finance leases - 123 Right-of-use assets obtained in exchange for lease obligations Operating leases 5,986 1,491 Finance leases - - Supplemental balance sheet information related to leases was as follows: As of March 31, 2023 As of December 31, 2022 Operating leases Operating lease right-of-use assets 38,842 36,450 Operating lease liabilities - Current 15,403 14,492 Operating lease liabilities - Non-current 27,895 26,651 Total operating lease liabilities 43,298 41,143 Finance Leases Property and equipment, at cost 1,509 1,509 Accumulated depreciation (1,509 ) (1,471 ) Property and equipment, at net - 38 Weighted average remaining lease term As of March 31, 2023 As of December 31, 2022 Operating leases (in years) 2.75 years 2.60 years Finance leases (in years) 0.00 years 0.00 years Weighted average discount rate Operating leases 6.2 % 6.0 % Finance leases 0.0 % 0.0 % The following table reconciles the undiscounted cash flows for the Company’s finance and operating leases as of March 31, 2023, to the finance and operating lease liabilities recorded on the Company’s balance sheet: Operating Leases Year ending December 31, Remainder of 2023 13,725 2024 15,642 2025 9,588 2026 4,887 2027 3,136 Thereafter 2,728 Total lease payments 49,706 Less: Imputed interest (6,408 ) Total present value to lease liabilities 43,298 |
Note 15 - Common Stock
Note 15 - Common Stock | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | Share Repurchase Plan In the year 2004, the Company had announced the “Repurchase plan” that authorized the Company to repurchase up-to $ 25 million of common stock. The program will remain in effect until the same is terminated by the Board of Director’s and will allow the Company to repurchase common stock from time to time on the open market either via block trades or privately negotiated transactions or by other means in accordance with federal securities laws, including Rule 10b5-1 programs or other means at times and in such amounts as management deems appropriate and will be funded from our working capital or other financing alternatives. Repurchases will be implemented by the Chief Financial Officer consistent with the guidelines adopted by the board of directors and will depend on market conditions and other factors. Pursuant to the Board of Directors (BOD) meeting held on August 26, 2021, the Board of Director’s approved the Company to carry out a stock repurchase in line with 2004 “Repurchase plan’ up-to $ 2 million. Further in board meeting held on December 14, 2021 the Board of Director’s approved additional $2 million towards a stock repurchase plan. Our stock repurchase programs are intended to programmatically offset the impact of dilution from our equity compensation programs and, subject to market conditions and other factors, to make opportunistic and programmatic repurchases of our common stock to reduce our outstanding share count. Any repurchased shares will be held as treasury stock and will be available for general corporate purposes. Our stock repurchase plan may be suspended or discontinued at any time. The actual timing, number and value of shares repurchased depends on a number of factors, including the market price of our common stock, general market and economic conditions, the shares withheld for taxes associated with the vesting of restricted stock, other corporate considerations and CFO’s determination as to the appropriate use of our cash. During the three months ended March 31, 2023, the Company had not On April 24, 2023, the Board of Director's approved to replace the Original Repurchase Plan with a new plan pursuant to which the Company will be authorized to repurchase up to $20 millions of the Corporation’s common stock from time to time (the “ New Repurchase Program |
Note 16 - Subsequent Events
Note 16 - Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | None other than disclosed in Note 3A - "Discontinued Operations and Held for Sale - Contact Center Company", Note 10 - "Debt" and Note 15 "Common Stock". |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles, impairment of goodwill, valuation allowances for deferred tax assets, leases, provision for doubtful debts and restructuring costs. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable and management has made assumption about the possible effect of the global macroeconomic conditions, including heightened inflation, changes to fiscal and monetary policy, higher interest rates, currency fluctuations, labor shortages & challenges in supply chain, have the potential to negatively impact the Company. There current macroeconomic conditions may continue or aggravate and could cause the United States economy or other global economies to experience an economic slowdown or recession. We anticipate our business and operations could be materially adversely affected by a prolonged recession in the United States or other major global economy. Although these estimates and assumptions are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. |
Revenue from Contract with Customer [Policy Text Block] | Revenue The Company utilizes a five-step process given in ASC 606, for revenue recognition that focuses on the transfer of control, rather than the transfer of risks and rewards. It also provided additional guidance on accounting for contract acquisition and fulfillment costs. Refer Note 5 on "Revenue" for further information. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Allowance for Expected Credit Losses The Company maintains an allowance for current expected credit losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses which are adjusted to current market and economic conditions and a reasonable and supportable forecast. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Refer Note 5 on "Revenue" for further information. |
Lessee, Leases [Policy Text Block] | Leases We determine if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, current maturity of operating lease liabilities, and operating lease liabilities in our consolidated balance sheet. Finance leases are included in property plant and equipment, long-term debt, accrued expenses and other current liabilities in our consolidated balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the balance lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the date of initial application on determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain to exercise that option. Lease expense is recognized on a straight-line basis over the lease term. ASC 842 requires an entity to apply the guidance on impairment of long-lived assets in ASC 360 to right-of-use assets. Therefore, right-of-use assets must be monitored for impairment, like other long-lived non-financial assets, regardless of whether the lease is an operating lease or a finance lease. When impairment indicators exist, an asset (asset group) should be tested to determine whether there is an impairment. We have lease agreements with lease and non-lease components, which are generally accounted for separately. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant, and equipment, are stated at depreciated cost. Additions and improvement activities are capitalized. Maintenance and repairs are expensed as incurred. Assets held under finance leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease. Depreciation and amortization is computed using the straight-line method based on their estimated useful lives, as follows: Estimated Useful Life Buildings and building improvements 3-20 years Telephone and computer equipment 3-10 years Furniture, fixtures, and miscellaneous equipment 3-15 years Software 1-7 years We depreciate leasehold improvements associated with operating leases over the shorter of 15 years or remaining life of the lease. Amortization expense related to assets recorded under capital leases is included in depreciation and amortization expense. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets The Company evaluates potential impairments of long-lived assets when it determines that the carrying value of a long-lived asset may not one not, may may not |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Intangible Assets Goodwill Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not not not not 4, 7, |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible Assets We amortize all acquisition-related intangible assets that are subject to amortization using the straight-line method over the estimated useful life based on economic benefit as follows: Estimated Useful Life Customer Relationship 8 - 13.5 years Brand 13.5 years Trademarks 15 years Developed Technology 5 years We perform a review of intangible assets to determine if facts and circumstances indicate that the useful life is shorter than we had originally estimated or that the carrying amount of assets may not 4, |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Measurements The carrying value of our cash and cash equivalents, accounts receivable, notes receivable, accounts payable, and restructuring liabilities approximate fair value because of their short-term nature. Our debt has a variable interest rate, so the carrying amount approximates fair value because interest rates on these instruments approximate the interest rate on debt with similar terms available to us. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The levels of the fair value hierarchy are described below: Level 1 - Quoted prices for identical instruments traded in active markets. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Unobservable inputs that cannot be supported by market activity and that are significant to the fair value of the asset or liability, such as the use of certain pricing models, discounted cash flow models and similar techniques that use significant assumptions. These unobservable inputs reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Refer to Note 9, “Fair Value Measurements,” for additional information on how we determine fair value for our assets and liabilities. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents and restricted cash We consider cash equivalents to be short-term, highly liquid investments readily convertible to known amounts of cash and so near their maturity at purchase that they present insignificant risk of changes in value because of changes in interest rates. Restricted cash consists of margin money deposit that is contractually restricted as to usage or withdrawal. |
Debt, Policy [Policy Text Block] | Borrowing costs Borrowing costs include interest as well as ancillary costs such as amortization of financing fees or charges and premium or discount on the borrowings. Borrowing costs (loan processing fee) are capitalized and amortized in the consolidated statement of income using effective interest method. Refer to Note 10, |
Interest and Dividend Income, Policy [Policy Text Block] | Interest and dividend income Interest revenue is recognized on an accrual basis taking into account the interest rates applicable to the financial assets. Dividend income is recognized when the Company’s right to receive such income is established by the reporting date. |
Government Grants and Subsidies, Policy [Policy Text Block] | Government grants and subsidies Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received, and the Company will comply with all attached conditions. Government grants received on capital expenditure are generally deducted in arriving at the carrying amount of the asset purchased. Grants for revenue expenditure are netted against the cost incurred by the Company. Where retention of a government grant is dependent on the Company satisfying certain criteria, it is initially recognized as deferred income. When the criteria for retention have been satisfied, the deferred income balance is netted against the asset purchased. Government grant in the nature of export incentive is recognized as revenue. |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | Restructuring Charges On an ongoing basis, management assesses the profitability and utilization of our facilities and in some cases, management has chosen to close facilities. Severance payments that occur from reductions in the workforce are in accordance with our post-employment policy and/or statutory requirements that are communicated to all employees; therefore, severance liabilities are recognized when termination of employment is communicated to the employee(s). Other liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, instead of upon commitment to an exit plan. A significant assumption used in determining the amount of the estimated liability for closing a facility is the estimated liability for future lease payments on vacant facilities. We determine our estimate of sublease payments based on our ability to successfully negotiate early termination agreements with landlords, a third-party broker, or management’s assessment of our ability to sublease the facility based upon the market conditions in which the facility is located. If the assumptions regarding early termination and the timing and amounts of sublease payments prove to be inaccurate, we may be required to record additional losses, or conversely, a future gain. Refer to Note 7 |
Derivatives, Policy [Policy Text Block] | Derivative Instruments and Hedging Activities In the ordinary course of business, the Company uses certain derivative financial instruments to reduce business risks which arise from its exposure to foreign exchange and interest rate fluctuations associated with borrowings (cash flow hedges). When the Company opts to undertake hedge accounting, the Company documents, at the inception of the hedging transaction, the economic relationship between hedging instruments and hedged items including whether the hedging instrument is expected to offset changes in cash flows or fair values of hedged items. The Company documents its risk management objective and strategy for undertaking various hedge transactions at the inception of each hedge relationship. Derivatives are initially recognised at fair value on the date the derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged and the type of hedge relationship designated. Cash flow hedges that qualify for hedge accounting The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges, is recognised through OCI and as cash flow hedging reserve within equity, limited to the cumulative change in fair value of the hedged item on a present value basis from the inception of the hedge. The gain or loss relating to the ineffective portion is recognised immediately in the Statement of Income (loss). Amounts accumulated in equity are reclassified to the Statement of Income (loss). Derivatives that are not designated as hedges When derivative contracts to hedge risks are not Presentation The entire fair value of a derivative contract is classified as a noncurrent asset or liability when the remaining maturity of the contract exceeds 12 not 12 8 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Matters The Company has operations in Argentina (classified as discontinued operations) and its functional currency has historically been the Argentine Peso. The Company monitors inflation rates in countries where it operates as required by U.S. GAAP. Under ASC 830-10-45-12, an economy must be classified as highly inflationary when the cumulative three-year rate exceeds 100%. Considering the inflation data of Argentina, the Company has considered Argentina to be highly inflationary beginning on July 1, 2018. In accordance with ASC 830, the functional currency of the Argentina business has been changed to USD, which requires re-measurement of the local books to USD. Exchange gains and losses are recorded through net income instead of through other comprehensive income as had been done historically. Translation adjustments from periods prior to the change in functional currency were not removed from equity. |
Income Tax, Policy [Policy Text Block] | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income taxes reflect net effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. We are subject to foreign income taxes on our foreign operations. We are required to estimate our income taxes in each jurisdiction in which we operate. This process involves estimating our actual current tax exposure, together with assessing temporary differences resulting from differing treatment of items for tax and financial reporting purposes. The tax effects of these temporary differences are recorded as deferred tax assets or deferred tax liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the consolidated statement of income (loss) in the period during which such rates are enacted. We record a valuation allowance when it is more likely than not not We consider all available evidence to determine whether it is "more likely than not" We do not not not |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Employee benefits Contributions to defined contribution plans are charged to consolidated statements of operations in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. The Company reviews its assumptions on quarterly basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. |
Share-Based Payment Arrangement [Policy Text Block] | Stock-Based Compensation We recognize expenses related to all share-based payments to employees, including grants of employee stock options, based on the grant-date fair values amortized straight-line over the period during which the employees are required to provide services in exchange for the equity instruments. We include an estimate of forfeitures when calculating compensation expenses. We use the Black-Scholes method for valuing stock-based awards. See Note 11, |
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) Per Share Basic earnings per share are computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted earnings per share, the treasury stock method is used for stock-based awards except where the results would be anti-dilutive. When a net loss is reported, potentially issuable common shares are generally excluded from the computation of diluted earnings per share as their effect would be anti-dilutive. Refer to Note 6, |
Discontinued Operations, Policy [Policy Text Block] | Assets Held for Sale and Discontinued Operations The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the business is sold and classified as held for sale, in accordance with the criteria of Accounting Standard Codification ("ASC") Topic 205-20 "Presentation of Financial Statements - Discontinued Operations" and ASC Topic 360-10 "Impairment and Disposal of Long Lived Assets". The results of discontinued operations are reported in Income from Discontinued Operations, net of tax in the accompanying Consolidated Statement of Income for the current and prior period and include any gain or loss recognized on closing, or adjustment of the carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value less cost to sell, a loss is recognized. Assets and liabilities related to a business classified as held for sale are segregated in the current and prior-period balance sheet. All assets and liabilities of the operations classified as held for sale are disclosed as current assets and liabilities in the current year and previous year classification has been retained. The Company allocate interest cost on Debt that is required to be repaid as a result of disposal to discontinued operations. Interest cost on Corporate Debt not directly attributable to discontinued operations is allocated between continuing and discontinued operations in the ratio mentioned in ASC 205-20-45-7 which as follows: Net assets to be sold or discontinued less debt that is required to be paid as a result of the disposal / The sum of total net assets of the entity plus debt other than: 1) debt of the discontinued operations that will be assumed by the buyer; 2) debt that is required to be paid as a result of the disposal transaction; and 3) debt that can be directly attributable to other operations of the entity. If a business is classified as held for sale after the balance sheet but before the financial statements are issued or are available to be issued, the business continues to be classified as held and used in those financial statements when issued or when available to be issued. Refer “Note 3A & 3B – "Discontinued Operations and Held for Sale" in our consolidated financial statements included elsewhere in this report for additional information and disclosures. |
New Accounting Pronouncements, Policy [Policy Text Block] | Changes in Accounting Policies Except as described below, the Company has applied accounting policies consistently to all periods presented in these consolidated financial statements. The Company adopted ASC Topic 326, Financial Instruments—Credit Losses (“Topic326”), effective January 1, 2023. As a result of the Company’s adoption of this new standard, current expected credit losses(“CECL”) are measured using lifetime “expected credit loss” methodology, replacing the incurred loss model that recognized losses only when they became probable and estimable. The Company changed its accounting policy for recognition and measurement of CECL as detailed below. Topic 326 is applicable to financial assets measured at amortized cost. It requires historical loss data to be adjusted to reflect changes in asset-specific considerations, current conditions and reasonable and supportable forecasts of future economic conditions. To analyse credit losses on financial assets, the Company applied aging Schedule method to determine expected credit losses. The Company applied Topic 326 using the modified retrospective transition approach, which involves recognizing the cumulative effect of initial adoption of Topic 326 as an adjustment to its opening retained earnings as of January 1, 2023.Therefore, comparative information prior to the adoption date has not been adjusted. Recent Accounting Pronouncements In March 2020, No. 2020 04, 848 December 31, 2022. December 2022, No. 2022 06, 848 848, 848 December 31, 2024. 2020 04. |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Property, Plant and Equipment, Useful Lives [Table Text Block] | Estimated Useful Life Buildings and building improvements 3-20 years Telephone and computer equipment 3-10 years Furniture, fixtures, and miscellaneous equipment 3-15 years Software 1-7 years |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Estimated Useful Life Customer Relationship 8 - 13.5 years Brand 13.5 years Trademarks 15 years Developed Technology 5 years |
Note 3A - Discontinued Operat_2
Note 3A - Discontinued Operations and Held for Sale - Contact Center Company (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Statement of income (loss) Three Months Ended March 31, 2023 2022 Revenue 64,364 58,687 Cost of services (54,889 ) (51,672 ) Gross profit 9,475 7,015 Selling, general and administrative expenses (3,117 ) (2,684 ) Impairment losses and restructuring/exit cost (4 ) (30 ) Operating income 6,354 4,301 Interest expense and other income (expense), net* (1,174 ) (611 ) Foreign exchange gains (losses), net (10 ) (6 ) Income before tax expenses 5,170 3,684 Tax expenses (1,184 ) (1,455 ) Net income 3,986 2,229 March 31, 2023 December 31, 2022 Assets Current assets Cash and cash equivalents 28,284 38,002 Restricted cash 5,735 4,374 Trade accounts receivables, net 33,853 24,794 Unbilled revenue 46,434 43,322 Prepaid and other current assets 4,696 5,971 Total current assets 119,002 116,463 Non-current assets Property, plant and equipment, net 4,449 3,656 Operating lease right-of-use assets 11,289 12,184 Goodwill 54,840 54,840 Deferred tax assets, net 4,880 4,914 Prepaid expenses and other non-current assets 3,670 3,127 Total non-current assets 79,128 78,721 Total assets classified as held for sale in the consolidated balance sheet 198,130 195,184 Liabilities Current liabilities Trade accounts payables 3,927 658 Accrued expenses 15,992 19,467 Current maturity of operating lease liabilities 6,283 6,752 Other current liabilities 28,912 36,129 Total current liabilities 55,114 63,006 Non-current liabilities Operating lease liabilities 4,211 4,702 Other non-current liabilities 17,053 11,817 Deferred tax liabilities, net 2,908 2,734 Total non-current liabilities 24,172 19,253 Total liabilities classified as held for sale in the consolidated balance sheet 79,286 82,259 Statement of income (loss) Three Months Ended March 31, 2023 2022 Revenue 6,134 7,538 Cost of services (6,255 ) (7,991 ) Gross profit (loss) (121 ) (453 ) Selling, general and administrative expenses (467 ) (530 ) Impairment losses and restructuring/exit cost (1,341 ) (1,382 ) Operating income (loss) (1,929 ) (2,365 ) Interest expense and other income (expense), net 534 1,367 Foreign exchange gains (losses), net (114 ) (178 ) Income (loss) (1,509 ) (1,176 ) Tax expense - - Net (loss) (1,509 ) (1,176 ) March 31, 2023 December 31, 2022 Assets Current assets Cash and cash equivalents 553 367 Trade accounts receivables, net 2,524 2,483 Unbilled revenue 1,444 1,320 Prepaid and other current assets 1,806 1,988 Total current assets 6,327 6,158 Non-current assets Property, plant and equipment, net 859 854 Operating lease right-of-use assets 552 620 Prepaid expenses and other non-current assets 15 15 Total non-current assets 1,426 1,489 Total assets classified as held for sale in the consolidated balance sheet 7,753 7,647 Liabilities and Stockholders’ Equity Current liabilities Trade accounts payables 199 307 Accrued expenses 3,039 1,951 Short term debt 154 325 Current maturity of operating lease liabilities 394 398 Other current liabilities 2,583 2,674 Total current liabilities 6,369 5,655 Non-current liabilities Operating lease liabilities 163 226 Other non-current liabilities 1,135 1,346 Total non-current liabilities 1,298 1,572 Total liabilities classified as held for sale in the consolidated balance sheet 7,667 7,227 |
Disposal Groups, Including Discontinued Operations. Cash Flows [Table Text Block] | Net cash flows attributable to the discontinued operations: March 31, 2023 March 31, 2022 Net cash generated from/used in operating activities (5,652 ) 3,699 Net cash used in investing activities (3,513 ) (1,280 ) Net cash (used in) / provided by financing activities - - Net Cash Inflow (9,165 ) 2,419 March 31, 2023 March 31, 2022 Net cash generated from / used in operating activities (773 ) (2,113 ) Net cash generated from / used in investing activities (5 ) 9 Net cash generated from / used in financing activities (132 ) (84 ) Net Cash outflow (910 ) (2,188 ) |
Note 4 - Goodwill and Intangi_2
Note 4 - Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Reporting Units: March 31, 2023 December 31, 2022 Americas 60,128 60,128 India 12,554 12,554 Malaysia 43,678 43,678 Australia 4,145 4,145 Total 120,505 120,505 March 31, 2023 December 31, 2022 Opening balance 120,505 128,557 Impairment - (8,052 ) Closing balance 120,505 120,505 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | As of March 31, 2023 Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Customer relationships 66,220 28,871 37,349 6.5 Brand 49,500 19,643 29,857 7.1 Trademarks 13,210 4,137 9,073 7.5 Other intangibles 2,130 1,225 905 4.9 131,060 53,876 77,184 As of December 31, 2022 Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Customer relationships 66,220 27,484 38,736 6.5 Brand 49,500 18,740 30,760 7.1 Trademarks 13,210 3,917 9,293 7.5 Other intangibles 2,130 1,174 956 4.9 131,060 51,315 79,745 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending December 31, Amount Remainder of 2023 7,786 2024 10,252 2025 10,252 2026 9,490 2027 8,549 Thereafter 30,855 |
Note 5 - Revenue (Tables)
Note 5 - Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended March 31, Vertical 2023 2022 Telecom 23,985 24,343 E-commerce & Consumer 15,996 20,143 Financial & Business Services 13,379 13,135 Media & Cable 13,966 15,351 Travel & Hospitality 11,699 12,272 Healthcare & Education 6,646 8,633 Technology, IT & Related Services 3,271 3,619 Other verticals 3,147 3,596 Revenue 92,089 101,092 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | As of March 31, 2023 As of December 31, 2022 Trade accounts receivables and Unbilled Revenue 77,877 74,377 Less: Allowance for expected credit loss (3,363 ) (3,032 ) Trade accounts receivables and Unbilled Revenue 74,514 71,345 |
Accounts Receivable, Allowance for Credit Loss [Table Text Block] | As of March 31, 2023 Balance at the beginning of the period 3,032 Transition period adjustment pursuant to ASC 326 135 Additions during the period 196 Balance at the end of the period 3,363 |
Note 6 - Net Income (Loss) Pe_2
Note 6 - Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, 2023 2022 Shares used in basic earnings per share calculation 40,321 40,338 Effect of dilutive securities: Stock options - - Restricted stock/Deferred stock units - - Total effects of dilutive securities - - Shares used in dilutive earnings per share calculation 40,321 40,338 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended March 31, 2023 2022 Anti-dilutive securities Stock options 2,231 3,030 |
Note 7 - Impairment Losses & _2
Note 7 - Impairment Losses & Restructuring Exit Cost (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Employee related Facilities related Total Balance on December 31, 2022 39 - 39 Accruals/(reversals) 317 - 317 Payments (356 ) - (356 ) Balance as of March 31, 2023 - - - Employee related Facilities related Total Balance on December 31, 2021 310 155 465 Accruals/(reversals) 551 111 662 Payments (822 ) (266 ) (1,088 ) Balance on December 31, 2022 39 - 39 |
Note 8 - Derivative Instrumen_2
Note 8 - Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | Derivatives not designated under ASC 815 For Three Months Ended March 31, 2023 For Three Months Ended March 31, 2022 Mark to Market gain on Interest rate cap 87 - |
Note 9 - Fair Value Measureme_2
Note 9 - Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | As of March 31, 2023 Level 1 Level 2 Level 3 Total Assets: Interest rate cap - - - - Total fair value of assets measured on a recurring basis - - - - Liabilities: Interest rate cap - (26 ) - (26 ) Total fair value of liabilities measured on a recurring basis - (26 ) - (26 ) As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Interest rate cap - - - - Total fair value of assets measured on a recurring basis - - - - Liabilities: Interest rate cap - (113 ) - (113 ) Total fair value of liabilities measured on a recurring basis - (113 ) - (113 ) |
Note 10 - Debt (Tables)
Note 10 - Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | As of March 31, 2023 As of December 31, 2022 Short term debt Working capital facilities 14,878 14,267 Current portion of long term debt Current maturity of term loan 48,000 119,194 Current maturity of equipment loan 854 1,272 Total 63,732 134,733 Long term debt Term loan, net of debt issuance costs 66,943 41,175 Total 66,943 41,175 |
Contractual Obligation, Fiscal Year Maturity [Table Text Block] | Years Amount Remainder of 2023* 48,000 2024 18,403 2025 42,940 2026 6,067 Total 115,410 |
Schedule of Debt Issuance Cost [Table Text Block] | March 31, 2023 December 31, 2022 Opening balance 507 2,332 Less: Amortization of debt issuance cost* (40 ) (1,825 ) Closing balance 467 507 |
Note 12 - Accumulated Other C_2
Note 12 - Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustments Defined Benefit Plan Equity attributable to Startek shareholders Non-controlling interests Total Balance on December 31, 2022 (11,781 ) (4,277 ) (16,058 ) (4,601 ) (20,659 ) Continuing Operations Foreign currency translation (124 ) - (124 ) - (124 ) Pension amortization* - 124 124 - 124 Discontinued Operations Pension amortization* - 511 511 614 1,125 Balance at March 31, 2023 (11,905 ) (3,642 ) (15,547 ) (3,987 ) (19,534 ) |
Note 13 - Segment and Geograp_2
Note 13 - Segment and Geographical Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended March 31, 2023 2022 Revenue Americas 44,477 45,415 India & Sri Lanka 23,247 27,961 Malaysia 10,582 11,280 Australia 8,988 9,480 South Africa 4,766 6,190 Rest of World 29 766 Total 92,089 101,092 Three Months Ended March 31, 2023 2022 Operating income (loss) Americas 2,125 (2,319 ) India & Sri Lanka 238 3,467 Malaysia 2,890 2,026 Australia 560 1,101 South Africa 227 1,178 Rest of World (1,123 ) (559 ) Segment operating income 4,917 4,894 Startek consolidation adjustments Private offer transaction cost - (500 ) Intangible amortization (2,561 ) (2,561 ) Total operating income 2,356 1,833 As of As of March 31, 2023 December 31, 2022 Property, plant and equipment, net Americas 8,912 9,718 India & Sri Lanka 9,465 8,340 Malaysia 2,208 2,390 Australia 729 829 South Africa 1,322 1,508 Rest of World 148 160 Total 22,784 22,945 |
Note 14 - Leases (Tables)
Note 14 - Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Operating lease cost 4,380 5,289 Finance lease cost Amortization of right-of-use assets 38 140 Interest on lease liabilities - 60 Total finance lease cost 38 200 Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 4,987 5,867 Operating cash flow from finance leases - 60 Financing cash flows from finance leases - 123 Right-of-use assets obtained in exchange for lease obligations Operating leases 5,986 1,491 Finance leases - - |
Assets And Liabilities, Lessee [Table Text Block] | As of March 31, 2023 As of December 31, 2022 Operating leases Operating lease right-of-use assets 38,842 36,450 Operating lease liabilities - Current 15,403 14,492 Operating lease liabilities - Non-current 27,895 26,651 Total operating lease liabilities 43,298 41,143 Finance Leases Property and equipment, at cost 1,509 1,509 Accumulated depreciation (1,509 ) (1,471 ) Property and equipment, at net - 38 Weighted average remaining lease term As of March 31, 2023 As of December 31, 2022 Operating leases (in years) 2.75 years 2.60 years Finance leases (in years) 0.00 years 0.00 years Weighted average discount rate Operating leases 6.2 % 6.0 % Finance leases 0.0 % 0.0 % |
Finance Lease, Liability, to be Paid, Maturity [Table Text Block] | Operating Leases Year ending December 31, Remainder of 2023 13,725 2024 15,642 2025 9,588 2026 4,887 2027 3,136 Thereafter 2,728 Total lease payments 49,706 Less: Imputed interest (6,408 ) Total present value to lease liabilities 43,298 |
Note 1 - Overview and Basis o_2
Note 1 - Overview and Basis of Preparation (Details Textual) | Mar. 31, 2023 |
Number of Countries in which Entity Operates | 11 |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies - Useful Lives of Property, Plant & Equipment (Details) | Mar. 31, 2023 |
Buildings and Building Improvements [Member] | Minimum [Member] | |
Estimated useful life (Year) | 3 years |
Buildings and Building Improvements [Member] | Maximum [Member] | |
Estimated useful life (Year) | 20 years |
Telephone and Computer Equipment [Member] | Minimum [Member] | |
Estimated useful life (Year) | 3 years |
Telephone and Computer Equipment [Member] | Maximum [Member] | |
Estimated useful life (Year) | 10 years |
Furniture, Fixtures, and Miscellaneous Equipment [Member] | Minimum [Member] | |
Estimated useful life (Year) | 3 years |
Furniture, Fixtures, and Miscellaneous Equipment [Member] | Maximum [Member] | |
Estimated useful life (Year) | 15 years |
Computer Software [Member] | Minimum [Member] | |
Estimated useful life (Year) | 1 year |
Computer Software [Member] | Maximum [Member] | |
Estimated useful life (Year) | 7 years |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies - Intangibles (Details) | Mar. 31, 2023 |
Customer Relationships [Member] | Minimum [Member] | |
Estimated useful life (Year) | 8 years |
Customer Relationships [Member] | Maximum [Member] | |
Estimated useful life (Year) | 13 years 6 months |
Brand [Member] | Maximum [Member] | |
Estimated useful life (Year) | 13 years 6 months |
Trademarks [Member] | |
Estimated useful life (Year) | 15 years |
Developed Technology Rights [Member] | |
Estimated useful life (Year) | 5 years |
Note 3A - Discontinued Operat_3
Note 3A - Discontinued Operations and Held for Sale - Contact Center Company (Details Textual) ر.س in Millions, $ in Millions | Apr. 03, 2023 USD ($) | Jan. 11, 2023 USD ($) | Jan. 11, 2023 SAR (ر.س) | Nov. 10, 2022 |
Contact Center Company (CCC) [Member] | Discontinued Operations, Held-for-Sale or Disposed of by Sale [Member] | Subsidiaries [Member] | ||||
Fair Value Disclosure, Fair Value of Subsidiary | $ 120 | ر.س 450 | ||
Contact Center Company (CCC) [Member] | Discontinued Operations, Held-for-Sale or Disposed of by Sale [Member] | Subsidiaries [Member] | Subsequent Event [Member] | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 68.9 | |||
Contact Center Company (CCC) [Member] | Subsequent Event [Member] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 51% | |||
Contact Center Company (CCC) [Member] | Contact Center Company (CCC) [Member] | Discontinued Operations, Held-for-Sale or Disposed of by Sale [Member] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 51% |
Note 3A - Discontinued Operat_4
Note 3A - Discontinued Operations and Held for Sale - Contact Center Company - Income Statement and Balance Sheet Information of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income before tax expenses | $ 3,661 | $ 2,508 | |
Tax expenses | (1,184) | (1,455) | |
Net income | 2,477 | 1,053 | |
Total current assets | 205,883 | $ 202,831 | |
Total current liabilities | 86,953 | 89,486 | |
Contact Center Company (CCC) [Member] | Discontinued Operations, Held-for-Sale or Disposed of by Sale [Member] | |||
Revenue | 64,364 | 58,687 | |
Cost of services | (54,889) | (51,672) | |
Gross profit | 9,475 | 7,015 | |
Selling, general and administrative expenses | (3,117) | (2,684) | |
Impairment losses and restructuring/exit cost | (4) | (30) | |
Operating income | 6,354 | 4,301 | |
Interest expense and other income (expense), net* | (1,174) | (611) | |
Foreign exchange gains (losses), net | (10) | (6) | |
Income before tax expenses | 5,170 | 3,684 | |
Tax expenses | (1,184) | (1,455) | |
Net income | 3,986 | 2,229 | |
Contact Center Company (CCC) [Member] | Discontinued Operations, Held-for-Sale or Disposed of by Sale [Member] | ARGENTINA | |||
Revenue | 6,134 | 7,538 | |
Cost of services | (6,255) | (7,991) | |
Gross profit | (121) | (453) | |
Selling, general and administrative expenses | (467) | (530) | |
Impairment losses and restructuring/exit cost | (1,341) | (1,382) | |
Operating income | (1,929) | (2,365) | |
Foreign exchange gains (losses), net | (114) | (178) | |
Income before tax expenses | (1,509) | (1,176) | |
Tax expenses | 0 | 0 | |
Net income | (1,509) | (1,176) | |
Interest expense and other income (expense), net | 534 | $ 1,367 | |
Contact Center Company (CCC) [Member] | Discontinued Operations, Held-for-Sale [Member] | |||
Cash and cash equivalents | 28,284 | 38,002 | |
Restricted cash | 5,735 | 4,374 | |
Trade accounts receivables, net | 33,853 | 24,794 | |
Unbilled revenue | 46,434 | 43,322 | |
Prepaid and other current assets | 4,696 | 5,971 | |
Total current assets | 119,002 | 116,463 | |
Property, plant and equipment, net | 4,449 | 3,656 | |
Operating lease right-of-use assets | 11,289 | 12,184 | |
Goodwill | 54,840 | 54,840 | |
Deferred tax assets, net | 4,880 | 4,914 | |
Prepaid expenses and other non-current assets | 3,670 | 3,127 | |
Total non-current assets | 79,128 | 78,721 | |
Total assets classified as held for sale in the consolidated balance sheet | 198,130 | 195,184 | |
Trade accounts payables | 3,927 | 658 | |
Accrued expenses | 15,992 | 19,467 | |
Current maturity of operating lease liabilities | 6,283 | 6,752 | |
Other current liabilities | 28,912 | 36,129 | |
Total current liabilities | 55,114 | 63,006 | |
Operating lease liabilities | 4,211 | 4,702 | |
Other non-current liabilities | 17,053 | 11,817 | |
Deferred tax liabilities, net | 2,908 | 2,734 | |
Total non-current liabilities | 24,172 | 19,253 | |
Total liabilities classified as held for sale in the consolidated balance sheet | 79,286 | 82,259 | |
Contact Center Company (CCC) [Member] | Discontinued Operations, Held-for-Sale [Member] | ARGENTINA | |||
Cash and cash equivalents | 553 | 367 | |
Trade accounts receivables, net | 2,524 | 2,483 | |
Unbilled revenue | 1,444 | 1,320 | |
Prepaid and other current assets | 1,806 | 1,988 | |
Total current assets | 6,327 | 6,158 | |
Property, plant and equipment, net | 859 | 854 | |
Operating lease right-of-use assets | 552 | 620 | |
Prepaid expenses and other non-current assets | 15 | 15 | |
Total non-current assets | 1,426 | 1,489 | |
Total assets classified as held for sale in the consolidated balance sheet | 7,753 | 7,647 | |
Trade accounts payables | 199 | 307 | |
Accrued expenses | 3,039 | 1,951 | |
Current maturity of operating lease liabilities | 394 | 398 | |
Other current liabilities | 2,583 | 2,674 | |
Total current liabilities | 6,369 | 5,655 | |
Operating lease liabilities | 163 | 226 | |
Other non-current liabilities | 1,135 | 1,346 | |
Total non-current liabilities | 1,298 | 1,572 | |
Total liabilities classified as held for sale in the consolidated balance sheet | 7,667 | 7,227 | |
Short term debt | $ 154 | $ 325 |
Note 3A - Discontinued Operat_5
Note 3A - Discontinued Operations and Held for Sale - Contact Center Company - Net Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net cash generated from/used in operating activities from discontinued operations | $ (6,425) | $ 1,586 |
Net cash generated from/used in investing activities from discontinued operations | (3,518) | (1,271) |
Net cash generated from/used in financing activities from discontinued operations | (132) | (84) |
Discontinued Operations, Held-for-Sale or Disposed of by Sale [Member] | Contact Center Company (CCC) [Member] | ||
Net cash generated from/used in operating activities from discontinued operations | (5,652) | 3,699 |
Net cash generated from/used in investing activities from discontinued operations | (3,513) | (1,280) |
Net cash generated from/used in financing activities from discontinued operations | 0 | 0 |
Net Cash Inflow | (9,165) | 2,419 |
Discontinued Operations, Held-for-Sale or Disposed of by Sale [Member] | Contact Center Company (CCC) [Member] | ARGENTINA | ||
Net cash generated from/used in operating activities from discontinued operations | (773) | (2,113) |
Net cash generated from/used in investing activities from discontinued operations | (5) | 9 |
Net cash generated from/used in financing activities from discontinued operations | (132) | (84) |
Net Cash Inflow | $ (910) | $ (2,188) |
Note 4 - Goodwill and Intangi_3
Note 4 - Goodwill and Intangible Assets (Details Textual) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill Impairment Analysis, Period for Which Revenue, Operating Margins and Cash Flows Are Projected (Year) | 5 years |
Impairment of Intangible Assets, Finite-lived | $ 0 |
Note 4 - Goodwill and Intangi_4
Note 4 - Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Goodwill | $ 120,505 | $ 120,505 |
Opening balance | 120,505 | 128,557 |
Impairment | 0 | (8,052) |
Closing balance | 120,505 | 120,505 |
Americas [Member] | ||
Goodwill | 60,128 | 60,128 |
Opening balance | 60,128 | |
Closing balance | 60,128 | 60,128 |
INDIA | ||
Goodwill | 12,554 | 12,554 |
Opening balance | 12,554 | |
Closing balance | 12,554 | 12,554 |
Malaysia 1 [Member] | ||
Goodwill | 43,678 | 43,678 |
Opening balance | 43,678 | |
Closing balance | 43,678 | 43,678 |
AUSTRALIA | ||
Goodwill | 4,145 | 4,145 |
Opening balance | 4,145 | |
Closing balance | $ 4,145 | $ 4,145 |
Note 4 - Goodwill and Intangi_5
Note 4 - Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Gross Intangibles | $ 131,060 | $ 131,060 |
Accumulated Amortization | 53,876 | 51,315 |
Net Intangibles | 77,184 | 79,745 |
Customer Relationships [Member] | ||
Gross Intangibles | 66,220 | 66,220 |
Accumulated Amortization | 28,871 | 27,484 |
Net Intangibles | $ 37,349 | $ 38,736 |
Weighted Average Amortization Period (Year) | 6 years 6 months | 6 years 6 months |
Brand [Member] | ||
Gross Intangibles | $ 49,500 | $ 49,500 |
Accumulated Amortization | 19,643 | 18,740 |
Net Intangibles | $ 29,857 | $ 30,760 |
Weighted Average Amortization Period (Year) | 7 years 1 month 6 days | 7 years 1 month 6 days |
Trademarks [Member] | ||
Gross Intangibles | $ 13,210 | $ 13,210 |
Accumulated Amortization | 4,137 | 3,917 |
Net Intangibles | $ 9,073 | $ 9,293 |
Weighted Average Amortization Period (Year) | 7 years 6 months | 7 years 6 months |
Other Intangible Assets [Member] | ||
Gross Intangibles | $ 2,130 | $ 2,130 |
Accumulated Amortization | 1,225 | 1,174 |
Net Intangibles | $ 905 | $ 956 |
Weighted Average Amortization Period (Year) | 4 years 10 months 24 days | 4 years 10 months 24 days |
Note 4 - Goodwill and Intangi_6
Note 4 - Goodwill and Intangible Assets - Expected Future Amortization of Intangible Assets (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Remainder of 2023 | $ 7,786 |
2024 | 10,252 |
2025 | 10,252 |
2026 | 9,490 |
2027 | 8,549 |
Thereafter | $ 30,855 |
Note 5 - Revenue (Details Textu
Note 5 - Revenue (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Accounts Receivable, Allowance for Credit Loss | $ 3,363 | $ 3,032 | |
Deferred Income Tax Assets, Net | 3,347 | 2,771 | |
Retained Earnings (Accumulated Deficit) | $ (87,073) | $ (86,302) | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | |||
Accounts Receivable, Allowance for Credit Loss | $ (135,000) | ||
Deferred Income Tax Assets, Net | 34,000 | ||
Retained Earnings (Accumulated Deficit) | $ (101,000) |
Note 5 - Revenue - Disaggregate
Note 5 - Revenue - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue | $ 92,089 | $ 101,092 |
Communications [Member] | ||
Revenue | 23,985 | 24,343 |
E-Commerce and Consumer [Member] | ||
Revenue | 15,996 | 20,143 |
Financial and Business Service [Member] | ||
Revenue | 13,379 | 13,135 |
Media [Member] | ||
Revenue | 13,966 | 15,351 |
Travel and Hospitality [Member] | ||
Revenue | 11,699 | 12,272 |
Health Care and Education [Member] | ||
Revenue | 6,646 | 8,633 |
Technology, IT and Related Service [Member] | ||
Revenue | 3,271 | 3,619 |
Other Sector [Member] | ||
Revenue | $ 3,147 | $ 3,596 |
Note 5 - Revenue - Trace Accoun
Note 5 - Revenue - Trace Accounts Receivables and Unbilled Revenue (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Trade accounts receivables and Unbilled Revenue | $ 77,877 | $ 74,377 |
Less: Allowance for expected credit loss | (3,363) | (3,032) |
Trade accounts receivables and Unbilled Revenue | $ 74,514 | $ 71,345 |
Note 5 - Revenue - Allowance fo
Note 5 - Revenue - Allowance for Expected Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Balance at the beginning of the period | $ 3,032 | |
Transition period adjustment pursuant to ASC 326 | 135 | |
Additions during the period | 196 | $ (56) |
Balance at the end of the period | $ 3,363 |
Note 6 - Net Income (Loss) Pe_3
Note 6 - Net Income (Loss) Per Share - Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Shares used in basic earnings per share calculation (in shares) | 40,321 | 40,338 |
Total effects of dilutive securities (in shares) | 0 | 0 |
Shares used in dilutive earnings per share calculation (in shares) | 40,321 | 40,338 |
Share-Based Payment Arrangement, Option [Member] | ||
Effect of dilutive securities (in shares) | 0 | 0 |
Restricted Stock/Deferred Stock Units [Member] | ||
Effect of dilutive securities (in shares) | 0 | 0 |
Note 6 - Net Income (Loss) Pe_4
Note 6 - Net Income (Loss) Per Share - Summary of Anti-dilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement, Option [Member] | ||
Stock options (in shares) | 2,231 | 3,030 |
Note 7 - Impairment Losses & _3
Note 7 - Impairment Losses & Restructuring Exit Cost (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Goodwill, Impairment Loss | $ 0 | $ 8,052 |
Note 7 - Impairment Losses & _4
Note 7 - Impairment Losses & Restructuring Exit Cost - Restructuring and Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Balance | $ 39 | $ 465 |
Accruals/(reversals) | 317 | 662 |
Payments | (356) | (1,088) |
Ending balance | 0 | 39 |
Employee Severance [Member] | ||
Balance | 39 | 310 |
Accruals/(reversals) | 317 | 551 |
Payments | (356) | (822) |
Ending balance | 0 | 39 |
Facility Closing [Member] | ||
Balance | 0 | 155 |
Accruals/(reversals) | 0 | 111 |
Payments | 0 | (266) |
Ending balance | $ 0 | $ 0 |
Note 8 - Derivative Instrumen_3
Note 8 - Derivative Instruments - Derivative Instruments Not Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest Rate Cap [Member] | Interest and Other Cost [Member] | ||
Mark to Market gain on Interest rate cap | $ 87 | $ 0 |
Note 9 - Fair Value Measureme_3
Note 9 - Fair Value Measurements - Assets and Liabilities Measured At Fair Value On a Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Total fair value of assets measured on a recurring basis | $ 0 | $ 0 |
Total fair value of liabilities measured on a recurring basis | (26) | (113) |
Fair Value, Inputs, Level 1 [Member] | ||
Total fair value of assets measured on a recurring basis | 0 | 0 |
Total fair value of liabilities measured on a recurring basis | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Total fair value of assets measured on a recurring basis | 0 | 0 |
Total fair value of liabilities measured on a recurring basis | (26) | (113) |
Fair Value, Inputs, Level 3 [Member] | ||
Total fair value of assets measured on a recurring basis | 0 | 0 |
Total fair value of liabilities measured on a recurring basis | 0 | 0 |
Interest Rate Cap [Member] | ||
Interest rate cap | 0 | 0 |
Interest rate cap | (26) | (113) |
Interest Rate Cap [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Interest rate cap | 0 | 0 |
Interest rate cap | 0 | 0 |
Interest Rate Cap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Interest rate cap | 0 | 0 |
Interest rate cap | (26) | (113) |
Interest Rate Cap [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Interest rate cap | 0 | 0 |
Interest rate cap | $ 0 | $ 0 |
Note 10 - Debt (Details Textual
Note 10 - Debt (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Apr. 03, 2023 | Jan. 10, 2023 | Feb. 18, 2021 | Apr. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Apr. 19, 2023 | Nov. 02, 2020 | ||
Amortization of Debt Issuance Costs | $ 40 | $ 146 | |||||||||
Subsequent Event [Member] | |||||||||||
Repayments of Debt | $ 55,000 | ||||||||||
Subsequent Event [Member] | Contact Center Company (CCC) [Member] | |||||||||||
Gross Proceeds from Sale Subsidiary | $ 68,900 | ||||||||||
Contact Center Company (CCC) [Member] | Subsequent Event [Member] | |||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 51% | ||||||||||
CSS Corp LP [Member] | |||||||||||
Proceeds From Issuance or Sale of Equity, Net of Tax | $ 45,400 | $ 41,300 | |||||||||
Proceeds from Redemption of Interest, Scheduled Installment | $ 4,100 | ||||||||||
Senior Debt Facility [Member] | |||||||||||
Debt Instrument, Covenant Compliance, Adjusted Leverage | 0.0225% | ||||||||||
Amortization of Debt Issuance Costs | [1] | 40 | 1,825 | ||||||||
Senior Debt Facility [Member] | Subsequent Event [Member] | |||||||||||
Required Debt Repayments | $ 55,000 | ||||||||||
Repayments of Debt | 48,000 | ||||||||||
Senior Debt Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | ||||||||||
Senior Debt Facility [Member] | Loans Payable [Member] | |||||||||||
Debt Instrument, Face Amount | $ 165,000 | ||||||||||
One-time Debt Amortization [Member] | |||||||||||
Amortization of Debt Issuance Costs | 1,260 | ||||||||||
Equipment Loan [Member] | Secured Debt [Member] | |||||||||||
Debt Instrument, Face Amount | $ 4,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.27% | ||||||||||
Long-term Debt, Term (Month) | 34 months | ||||||||||
Long-Term Debt, Gross | 900 | 900 | |||||||||
Non-recourse Factoring [Member] | |||||||||||
Long-Term Debt, Gross | 17,500 | 17,500 | $ 18,090 | ||||||||
Minimum [Member] | Senior Debt Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | ||||||||||
Maximum [Member] | Senior Debt Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | ||||||||||
Line of Credit [Member] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 28,000 | 28,000 | |||||||||
Long-Term Line of Credit | $ 14,800 | $ 14,800 | |||||||||
Line of Credit [Member] | Subsequent Event [Member] | |||||||||||
Required Debt Repayments | $ 7,000 | ||||||||||
Repayments of Debt | $ 7,000 | ||||||||||
Line of Credit [Member] | Minimum [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2% | ||||||||||
Line of Credit [Member] | Maximum [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | ||||||||||
[1]includes one time amortisation of $1,260 during period ended December 31, 2022. |
Note 10 - Debt - Summary of Deb
Note 10 - Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Short term debt | $ 14,878 | $ 14,267 |
Current maturity of term loan | 48,854 | 120,466 |
Current maturity of equipment loan | 48,854 | 120,466 |
Total current debt | 63,732 | 134,733 |
Long term debt | 66,943 | 41,175 |
Loans Payable [Member] | ||
Current maturity of term loan | 48,000 | 119,194 |
Current maturity of equipment loan | 48,000 | 119,194 |
Long term debt | 66,943 | 41,175 |
Secured Debt [Member] | ||
Current maturity of term loan | 854 | 1,272 |
Current maturity of equipment loan | 854 | 1,272 |
Working Capital Facilities [Member] | ||
Short term debt | $ 14,878 | $ 14,267 |
Note 10 - Debt - Principal Paym
Note 10 - Debt - Principal Payments Due on Term Loan (Details) $ in Thousands | Mar. 31, 2023 USD ($) | |
Remainder of 2023* | $ 48,000 | [1] |
2026 | 6,067 | |
Total | 115,410 | |
Loans Payable [Member] | ||
2024 | 18,403 | |
2025 | $ 42,940 | |
[1]Paid on April 21, 2023 |
Note 10 - Debt - Debt Issuance
Note 10 - Debt - Debt Issuance Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||
Less: Amortization of debt issuance cost* | $ (40) | $ (146) | ||
Senior Debt Facility [Member] | ||||
Opening balance | 507 | $ 2,332 | $ 2,332 | |
Less: Amortization of debt issuance cost* | [1] | (40) | (1,825) | |
Closing balance | $ 467 | $ 507 | ||
[1]includes one time amortisation of $1,260 during period ended December 31, 2022. |
Note 11 - Share-based Compens_2
Note 11 - Share-based Compensation (Details Textual) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Share-Based Payment Arrangement, Option [Member] | |
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 2,178 |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 7 days |
Selling, General and Administrative Expenses [Member] | |
Share-Based Payment Arrangement, Expense | $ 380 |
Note 12 - Accumulated Other C_3
Note 12 - Accumulated Other Comprehensive Loss (Details Textual) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | $ 97 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax, Discontinued Operations | $ 128 |
Note 12 - Accumulated Other C_4
Note 12 - Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Balance | $ (11,781) | |
Foreign currency translation | (124) | |
Pension amortization* | 0 | [1] |
Pension amortization* | 0 | [1] |
Balance | (11,905) | |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||
Balance | (4,277) | |
Foreign currency translation | 0 | |
Pension amortization* | 124 | [1] |
Pension amortization* | 511 | [1] |
Balance | (3,642) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Balance | (16,058) | |
Foreign currency translation | (124) | |
Pension amortization* | 124 | [1] |
Pension amortization* | 511 | [1] |
Balance | (15,547) | |
AOCI Attributable to Noncontrolling Interest [Member] | ||
Balance | (4,601) | |
Foreign currency translation | 0 | |
Pension amortization* | 0 | [1] |
Pension amortization* | 614 | [1] |
Balance | (3,987) | |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||
Balance | (20,659) | |
Foreign currency translation | (124) | |
Pension amortization* | 124 | [1] |
Pension amortization* | 1,125 | [1] |
Balance | $ (19,534) | |
[1]Pension amortisation is net of tax impact of $97 and $128 in respect of continued and discontinued operations respectively. |
Note 13 - Segment and Geograp_3
Note 13 - Segment and Geographical Information (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 27, 2022 | Feb. 25, 2021 | Mar. 31, 2022 | |
CSS Corp. [Member] | |||
Payments to Acquire Equity Method Investments | $ 25 | ||
CSS Corp LP [Member] | |||
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ 45.6 | ||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 8.4 | ||
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer One [Member] | |||
Concentration Risk, Percentage | 10% |
Note 13 - Segment and Geograp_4
Note 13 - Segment and Geographical Information - Summary of Segment Reporting Information, By Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenue | $ 92,089 | $ 101,092 | |
Operating income (loss) | 2,356 | 1,833 | |
Private offer transaction cost | 0 | (500) | |
Property, plant and equipment, net | 22,784 | $ 22,945 | |
Operating Segments [Member] | |||
Operating income (loss) | 4,917 | 4,894 | |
Segment Reconciling Items [Member] | |||
Intangible amortization | (2,561) | (2,561) | |
Americas [Member] | |||
Property, plant and equipment, net | 8,912 | 9,718 | |
Americas [Member] | Operating Segments [Member] | |||
Revenue | 44,477 | 45,415 | |
Operating income (loss) | 2,125 | (2,319) | |
India and Sri Lanka [Member] | |||
Property, plant and equipment, net | 9,465 | 8,340 | |
India and Sri Lanka [Member] | Operating Segments [Member] | |||
Revenue | 23,247 | 27,961 | |
Operating income (loss) | 238 | 3,467 | |
Malaysia 1 [Member] | |||
Property, plant and equipment, net | 2,208 | 2,390 | |
Malaysia 1 [Member] | Operating Segments [Member] | |||
Revenue | 10,582 | 11,280 | |
Operating income (loss) | 2,890 | 2,026 | |
AUSTRALIA | |||
Property, plant and equipment, net | 729 | 829 | |
Middle East [Member] | Operating Segments [Member] | |||
Revenue | 8,988 | 9,480 | |
Operating income (loss) | 560 | 1,101 | |
SOUTH AFRICA | |||
Property, plant and equipment, net | 1,322 | 1,508 | |
Argentina and Peru [Member] | Operating Segments [Member] | |||
Revenue | 4,766 | 6,190 | |
Operating income (loss) | 227 | 1,178 | |
Rest of World [Member] | |||
Property, plant and equipment, net | 148 | $ 160 | |
Rest of World [Member] | Operating Segments [Member] | |||
Revenue | 29 | 766 | |
Operating income (loss) | $ (1,123) | $ (559) |
Note 14 - Leases (Details Textu
Note 14 - Leases (Details Textual) | 3 Months Ended |
Mar. 31, 2023 | |
Lessee, Lease, Termination Period (Year) | 1 year |
Minimum [Member] | |
Lease, Remaining Lease Term (Year) | 1 year |
Lessee, Lease, Renewal Term (Year) | 3 years |
Maximum [Member] | |
Lease, Remaining Lease Term (Year) | 9 years |
Lessee, Lease, Renewal Term (Year) | 5 years |
Note 14 - Leases - Components o
Note 14 - Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating lease cost | $ 4,380 | $ 5,289 |
Amortization of right-of-use assets | 38 | 140 |
Interest on lease liabilities | 0 | 60 |
Total finance lease cost | 38 | 200 |
Operating cash flows from operating leases | 4,987 | 5,867 |
Operating cash flow from finance leases | 0 | 60 |
Financing cash flows from finance leases | 0 | 123 |
Operating leases | 5,986 | 1,491 |
Finance leases | $ 0 | $ 0 |
Note 14- Leases - Supplemental
Note 14- Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Operating lease right-of-use assets | $ 38,842 | $ 36,450 |
Operating lease liabilities - Current | 15,403 | 14,492 |
Operating lease liabilities - Non-current | 27,895 | 26,651 |
Total operating lease liabilities | $ 43,298 | $ 41,143 |
Operating leases (Year) | 2 years 9 months | 2 years 7 months 6 days |
Finance leases (Year) | 0 years | 0 years |
Operating leases | 6.20% | 6% |
Finance leases | 0% | 0% |
Property, Plant and Equipment, Net [Member] | ||
Property and equipment, at cost | $ 1,509 | $ 1,509 |
Accumulated depreciation | (1,509) | (1,471) |
Property and equipment, at net | $ 0 | $ 38 |
Note 14 - Leases - Maturities o
Note 14 - Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Remainder of 2023, Operating leases | $ 13,725 | |
2024, Operating leases | 15,642 | |
2025, Operating leases | 9,588 | |
2026, Operating leases | 4,887 | |
2027, Operating leases | 3,136 | |
Thereafter, Operating leases | 2,728 | |
Total lease payments, Operating leases | 49,706 | |
Less imputed interest, Operating leases | (6,408) | |
Total present value to lease liabilities, Operating leases | $ 43,298 | $ 41,143 |
Note 15 - Common Stock (Details
Note 15 - Common Stock (Details Textual) - USD ($) shares in Thousands | 3 Months Ended | ||||
Mar. 31, 2023 | Apr. 24, 2023 | Dec. 14, 2021 | Aug. 26, 2021 | Dec. 31, 2004 | |
Repurchase Plan [Member] | |||||
Stock Repurchase Program, Authorized Amount | $ 2,000,000 | $ 2,000,000 | $ 25,000,000 | ||
Treasury Stock, Shares, Acquired (in shares) | 0 | ||||
New Repurchase Plan [Member] | Subsequent Event [Member] | |||||
Stock Repurchase Program, Authorized Amount | $ 20 |