UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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FOR THE QUARTERLY PERIOD ENDED March 31, 2003. |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
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FOR THE TRANSITION PERIOD FROM TO . |
Commission File Number 1-12793
STARTEK, INC.
(Exact name of Registrant as specified in its charter)
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DELAWARE |
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84-1370538 |
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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100 Garfield
Street |
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(Address of principal executive offices) |
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(303) 361-6000 |
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(Registrant’s telephone number, including area code) |
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(Former name, former address and former fiscal year, if changed since last report) |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date.
Indicate by checkmark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes ý No o
Common Stock, $.01 Par Value – 14,207,501 shares as of May 2, 2003.
STARTEK, INC.
FORM 10-Q
2
Condensed Consolidated Balance Sheets
(dollars in thousands)
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December
31, |
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March 31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
13,143 |
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$ |
34,951 |
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Investments |
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44,022 |
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36,101 |
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Trade accounts receivable, less allowance for doubtful accounts of $816 and $813, respectively |
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37,232 |
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26,388 |
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Inventories |
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1,463 |
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2,914 |
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Income tax receivable |
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335 |
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— |
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Deferred tax assets |
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4,300 |
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3,420 |
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Prepaid expenses and other assets |
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958 |
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955 |
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Total current assets |
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101,453 |
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104,729 |
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Property, plant and equipment, net |
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38,797 |
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38,736 |
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Long-term deferred tax assets |
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110 |
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172 |
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Other assets |
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61 |
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71 |
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Total assets |
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$ |
140,421 |
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$ |
143,708 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
11,156 |
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$ |
8,630 |
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Accrued liabilities |
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7,235 |
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8,853 |
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Income taxes payable |
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— |
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339 |
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Current portion of long-term debt |
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2,221 |
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2,219 |
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Other |
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462 |
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451 |
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Total current liabilities |
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21,074 |
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20,492 |
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Long-term debt, less current portion |
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4,261 |
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3,707 |
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Other |
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492 |
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431 |
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Stockholders’ equity: |
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Common stock |
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142 |
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142 |
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Additional paid-in capital |
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50,060 |
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50,360 |
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Cumulative translation adjustment |
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(123 |
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(19 |
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Unrealized loss on investments available for sale |
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(738 |
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(812 |
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Retained earnings |
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65,253 |
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69,407 |
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Total stockholders’ equity |
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114,594 |
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119,078 |
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Total liabilities and stockholders’ equity |
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$ |
140,421 |
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$ |
143,708 |
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See notes to condensed consolidated financial statements.
3
Condensed Consolidated Income Statements
(dollars in thousands, except per share data)
(unaudited)
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Three
Months Ended |
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2002 |
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2003 |
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Revenue |
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$ |
45,960 |
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$ |
50,528 |
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Cost of services |
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34,791 |
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38,341 |
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Gross profit |
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11,169 |
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12,187 |
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Selling, general and administrative expenses |
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5,217 |
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6,350 |
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Operating profit |
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5,952 |
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5,837 |
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Net interest income and other |
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578 |
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779 |
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Income before income taxes |
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6,530 |
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6,616 |
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Income tax expense |
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2,510 |
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2,462 |
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Net income (A) |
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$ |
4,020 |
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$ |
4,154 |
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Weighted average shares of common stock (B) |
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14,086,561 |
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14,203,794 |
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Dilutive effect of stock options |
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182,693 |
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275,793 |
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Common stock and common stock equivalents (C) |
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14,269,254 |
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14,479,587 |
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Earnings per share: |
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Basic (A/B) |
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$ |
0.29 |
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$ |
0.29 |
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Diluted (A/C) |
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$ |
0.28 |
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$ |
0.29 |
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See notes to condensed consolidated financial statements.
4
STARTEK, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(unaudited)
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Three Months Ended |
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2002 |
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2003 |
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Operating Activities |
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Net income |
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$ |
4,020 |
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$ |
4,154 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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