Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - APAC CUSTOMER SERVICE INC | c92349exv99w1.htm |
| 8-K - FORM 8-K - APAC CUSTOMER SERVICE INC | c92349e8vk.htm |
Exhibit 99.2
| Q3 2009 Earnings Conference Call November 5, 2009 |
| Forward-Looking Statements Certain statements, including discussions of the Company's expectations for 2009 and beyond, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are inherently uncertain as they are based on various expectations and assumptions about future events, and they are subject to known and unknown risks, uncertainties and other factors, which may cause actual events and results to differ materially from historical results or the future results expressed or implied by the forward-looking statements. Please refer to the Company's Annual Report on Form 10-K for the year ended December 28, 2008 and our subsequent filings on Form 10-Q for the fiscal quarters ended March 29, 2009, June 28, 2009 and September 27, 2009 for a description of the factors that could cause such results to differ. The Company intends our forward-looking statements to speak only as of the date made and undertakes no obligation to update or revise any forward- looking statements. To supplement the Company's condensed consolidated financial statements presented in accordance with GAAP, the Company uses certain measures defined as non-GAAP financial measures by the SEC. Information regarding the reconciliation of the non-GAAP measures used in this presentation to our GAAP results is contained in the appendix and is also available on our website at http://www.apaccustomerservices.com and through the SEC. |
| APAC Presenters Michael P. Marrow President & CEO Andrew B. Szafran Senior Vice President & CFO |
| Agenda CEO Opening Commentary 3Q Overview Guidance Affirmation Financial Overview Additional CEO Commentary Operational Highlights New Business Wins and Growth Opportunities Ongoing Priorities Q&A |
| Revenue $68.4 $59.2 ? 15.4% Gross Margin 20.7% 17.0% ? 370 bp Adjusted EBITDA* $9.6 $5.8 ? 65% Net Income $6.6 $2.0 ? 229% Cash / (Debt) $16.2 ($13.8) ? $30.0 Q3 2009 Q3 2008 Change * See appendix Quarter-over-Quarter Analysis ($ in millions) |
| Revenue $207.6 $183.5 ? 13.2% Gross Margin 23.2% 15.6% ? 760 bp Adjusted EBITDA** $34.0 $14.5 ? 134% Net Income / (Loss) $24.9 $(2.1) NM* YTD 2009 YTD 2008 Change * Percentage change is not meaningful ** See appendix Cash / (Debt) $16.2 ($13.8) ? $30.0 Year-over-Year Analysis ($ in millions) |
| Operational Highlights Leyte, Philippines Site Well received by clients 600 employees Expect site to be sold out soon; full by end of Q1 2010 Tucson, AZ Site Recently assumed responsibility for site Total capacity: 750 seats 250 seats to support client/previous occupant Remaining seats for expansion with current and future clients |
| New Business Wins and Growth Opportunities Signed contract with one of largest healthcare services providers in US Signed contract with one of leading social media companies To be serviced out of Dominican Republic Exploring additional domestic, near^shore and off^shore sites Revitalized sales team continues to build pipeline |
| Ongoing Priorities Continue to enhance the quality and dependability of APAC's services Constant cost improvement through eliminating waste and reducing overhead Win business with both new logos and existing clients Continue to develop and recruit talented staff to operate business and service clients |
| APPENDIX |
| Appendix - Non-GAAP Financial Measures To supplement our condensed consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (GAAP), we use the following measures defined as non- GAAP financial measures by the SEC: EBITDA and adjusted EBITDA. The presentation of EBITDA and adjusted EBITDA is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. The items excluded from EBITDA and adjusted EBITDA are significant components of our financial statements and must be considered so in performing a comprehensive analysis of our overall financial results. We believe that EBITDA and adjusted EBITDA provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our core business operating results. We believe management, investors and lenders benefit from referring to EBITDA and adjusted EBITDA in assessing our performance and when planning, forecasting and analyzing future periods. EBITDA and adjusted EBITDA also facilitate internal comparisons to our historical performance and liquidity. We believe that EBITDA and adjusted EBITDA are useful to investors and analysts in allowing for greater transparency with respect to supplemental information used by us in our financial and operational decision making. We use consistent methods for computation of EBITDA and adjusted EBITDA. Our calculations of EBITDA and adjusted EBITDA may not be consistent with calculations of similar measures used by other companies. The accompanying table has more details on the GAAP financial measures that are most directly comparable to EBITDA and adjusted EBITDA and the related reconciliations between these financial measures. Additional information on EBITDA and adjusted EBITDA can be found in our Annual Report on Form 10-K for the year ended December 28, 2008 and our subsequent filings on Form 10-Q for the fiscal quarters ended March 29, 2009, June 28, 2009, and September 27, 2009. |
| We operate on a thirteen-week fiscal quarter that ends on the Sunday closest to September 30. We define EBITDA as net income (loss) plus income tax expense (benefit), depreciation and amortization, and interest expense. We define adjusted EBITDA as EBITDA adjusted for restructuring and other charges and asset impairment charges. EBITDA and adjusted EBITDA are measures used by our lenders, investors and analysts to evaluate our financial performance and our ability to pay interest and repay debt. These measures are also indicative of our ability to fund the capital investments necessary for our continued growth. We use these measures, together with our GAAP financial metrics, to assess our financial performance, allocate resources, measure our performance against debt covenants, and evaluate our overall progress towards meeting our long-term financial objectives. EBITDA and adjusted EBITDA are not intended to be considered in isolation or as a substitute for net income (loss) or cash flow from operations data presented in accordance with GAAP or as a measure of liquidity. The items excluded from EBITDA and adjusted EBITDA are significant components of our financial statements and must be considered in performing a comprehensive assessment of our overall financial results. EBITDA and adjusted EBITDA can be reconciled to net income (loss), which we believe to be the most directly comparable financial measure calculated and presented in accordance with GAAP, as follows: Appendix - Non-GAAP Financial Measures |