DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION | 9 Months Ended | |
Sep. 30, 2013 | Nov. 05, 2013 | |
Document and Entity Information Abstract | ' | ' |
Entity Registrant Name | 'StarTek, Inc. | ' |
Entity Central Index Key | '0001031029 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 15,365,153 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue | $58,448 | $47,675 | $167,834 | $142,955 |
Cost of services | 51,928 | 41,575 | 150,965 | 128,246 |
Gross profit | 6,520 | 6,100 | 16,869 | 14,709 |
Selling, general and administrative expenses | 7,153 | 6,924 | 21,601 | 22,579 |
Impairment losses and restructuring charges, net | 0 | 533 | -437 | 4,086 |
Operating loss | -633 | -1,357 | -4,295 | -11,956 |
Interest and other (income) expense, net | 1,075 | -108 | 1,009 | -295 |
Loss before income taxes | -1,708 | -1,249 | -5,304 | -11,661 |
Income tax expense (benefit) | 83 | -20 | 87 | -22 |
Net loss | -1,791 | -1,229 | -5,391 | -11,639 |
Other comprehensive (loss) income, net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | -145 | 105 | -671 | 453 |
Change in fair value of derivative instruments | 632 | 58 | -2,244 | 959 |
Comprehensive loss | ($1,304) | ($1,066) | ($8,306) | ($10,227) |
Net loss per common share - basic and diluted (in usd per share) | ($0.12) | ($0.08) | ($0.35) | ($0.76) |
Weighted average common shares outstanding - basic and diluted (in shares) | 15,351 | 15,263 | 15,330 | 15,230 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $6,017 | $9,183 |
Trade accounts receivable, net | 44,818 | 41,070 |
Deferred income tax assets | 279 | 288 |
Derivative asset | 0 | 733 |
Prepaid expenses | 2,770 | 2,045 |
Assets held for sale | 3,500 | 4,969 |
Current portion of note receivable | 660 | 660 |
Other current assets | 902 | 1,332 |
Total current assets | 58,946 | 60,280 |
Property, plant and equipment, net | 22,659 | 26,310 |
Long-term deferred income tax assets | 2,665 | 3,930 |
Long-term note receivable, net of current portion | 141 | 602 |
Intangible assets | 2,838 | 0 |
Other long-term assets | 2,047 | 2,010 |
Total assets | 89,296 | 93,132 |
Current liabilities: | ' | ' |
Accounts payable | 9,124 | 7,174 |
Accrued liabilities: | ' | ' |
Accrued payroll | 9,741 | 7,035 |
Accrued compensated absences | 2,220 | 2,591 |
Accrued restructuring costs | 14 | 725 |
Other accrued liabilities | 1,272 | 1,425 |
Derivative liability | 1,763 | 253 |
Deferred revenue | 577 | 638 |
Deferred income tax liabilities | 993 | 2,390 |
Other current liabilities | 1,972 | 1,648 |
Total current liabilities | 27,676 | 23,879 |
Accrued restructuring costs | 3 | 232 |
Deferred rent | 1,592 | 2,202 |
Other liabilities | 577 | 540 |
Total liabilities | 29,848 | 26,853 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, 32,000,000 non-convertible shares, $0.01 par value, authorized; 15,361,643 and 15,298,947 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 154 | 153 |
Additional paid-in capital | 73,909 | 72,435 |
Accumulated other comprehensive (loss) income | -386 | 2,529 |
Accumulated deficit | -14,229 | -8,838 |
Total stockholders' equity | 59,448 | 66,279 |
Total liabilities and stockholders' equity | $89,296 | $93,132 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value (in usd per share) | $0.01 | $0.01 |
Common stock, non-convertible shares authorized | 32,000,000 | 32,000,000 |
Common stock, shares issued | 15,361,643 | 15,298,947 |
Common stock, shares outstanding | 15,361,643 | 15,298,947 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Activities | ' | ' |
Net loss | ($5,391) | ($11,639) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation | 9,585 | 10,008 |
Impairment losses | 0 | 3,086 |
Non-cash compensation cost | 1,255 | 997 |
Amortization of deferred gain on sale leaseback transaction | -206 | 0 |
Deferred income taxes | -180 | 395 |
Other, net | 898 | 181 |
Changes in operating assets and liabilities: | ' | ' |
Trade accounts receivable, net | -3,798 | 2,684 |
Prepaid expenses and other assets | -1,022 | 683 |
Accounts payable | -194 | -590 |
Income taxes, net | -146 | 208 |
Accrued and other liabilities | 1,291 | -1,688 |
Net cash provided by operating activities | 2,092 | 4,325 |
Investing Activities | ' | ' |
Proceeds from note receivable | 495 | 495 |
Purchases of property, plant and equipment | -4,054 | -4,680 |
Cash paid for acquisitions of businesses | -1,889 | 0 |
Net cash used in investing activities | -5,448 | -4,185 |
Financing Activities | ' | ' |
Proceeds from stock option exercises | 140 | 1 |
Proceeds from the issuance of common stock | 79 | 74 |
Proceeds from line of credit | 13,662 | 16,176 |
Principal payments on line of credit | -13,662 | -16,176 |
Principal payments on capital lease obligations | -16 | -72 |
Net cash provided by financing activities | 203 | 3 |
Effect of exchange rate changes on cash | -13 | -663 |
Net decrease in cash and cash equivalents | -3,166 | -520 |
Cash and cash equivalents at beginning of period | 9,183 | 9,719 |
Cash and cash equivalents at end of period | $6,017 | $9,199 |
BASIS_OF_PRESENTATION_AND_SUMM
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or “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 GAAP for complete financial statements. These 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. Operating results for the three and nine months ended September 30, 2013, are not necessarily indicative of operating results that may be expected during any other interim period of 2013 or the year ending December 31, 2013. | |
The condensed consolidated balance sheet as of December 31, 2012, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. | |
Unless otherwise noted in this report, any description of “us,” “we” or “our” refers to StarTek, Inc. and its subsidiaries. Financial information in this report is presented in U.S. dollars. | |
Use of Estimates | |
The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they are determined to be necessary. | |
Recently Issued Accounting Standards | |
In July 2013, the FASB issued ASU 2013-11, Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, an amendment to FASB Accounting Standards Codification (“ASC”) Topic 740, Income Taxes (“FASB ASC Topic 740”). This update clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this ASU is not expected to have a material impact on our financial statements. | |
In March 2013, the FASB issued ASU 2013-05 Topic 830 - Foreign Currency Matters (“ASU 2013-05”). ASU 2013-05 resolves the diversity in practice about whether Subtopic 810-10, Consolidation-Overall, or Subtopic 830-30, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. In addition, the amendments in this ASU resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. ASU 2013-05 is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The adoption of this ASU is not expected to have a material impact on our financial statements. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2013 | |
Business Combinations [Abstract] | ' |
ACQUISITION | ' |
ACQUISITIONS | |
Ideal Dialogue Company, LLC | |
On March 18, 2013, we acquired Ideal Dialogue Company, LLC (“IDC”) for approximately $1,500 in cash. IDC uses analysis and unique methodologies based on more than 50 years of research in the science of human communication to optimize agent-customer interactions. IDC provides solutions that improve hiring, training, leadership development, quality monitoring and executive insight to enable customer management organizations to consistently create engaging conversations with customers. IDC is headquartered in Lutz, Florida. | |
The Company paid minimal acquisition-related expenses as part of the IDC purchase, which are recorded in selling, general and administrative expenses. Financial results of IDC from the date of acquisition are included in the results of operations within our Domestic segment. | |
The preliminary purchase price allocated to the identifiable intangible assets acquired as of the acquisition date was $1,490 with the remainder amount assigned to property, plant and equipment. The intangibles acquired and recorded consist of intellectual property, including proprietary processes and scoring and analysis methodologies. | |
Healthcare BPO | |
On July 24, 2013, we acquired a business process outsourcing provider in the health care industry for approximately $1,500. The company provides health care related services to patients on behalf of the professional medical community. | |
As of September 30, 2013, the Company had paid $389 of the purchase price with the remaining balance to be paid by January 2015, which is included in other accrued liabilities and other liabilities in the Condensed Consolidated Balance Sheet. Minimal acquisition-related expenses were paid, which are recorded in selling, general and administrative expenses. Financial results from the date of acquisition are included in the results of operations within our Domestic segment. The preliminary purchase price has been allocated to intangible assets. | |
The allocation of the purchase price for these acquisitions will be completed upon the completion of a valuation of the acquired identifiable and unidentifiable intangibles. |
IMPAIRMENT_LOSSES_AND_RESTRUCT
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES | ' | |||||||||||||||
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES | ||||||||||||||||
Impairment Losses | ||||||||||||||||
During the three and nine months ended September 30, 2013 we did not incur any impairment losses. During the nine months ended September 30, 2012, we incurred $3,086 of impairment losses in our Domestic segment associated with two facilities where we received customer notification of a ramp-down in business. Future cash flows did not support the carrying value of the long-lived assets in these facilities, such as computer equipment, software, equipment and furniture and fixtures. We were able to secure new business for one of these facilities and the other facility was closed and its lease expired in January 2013. | ||||||||||||||||
Disposal of Long-Lived Assets | ||||||||||||||||
During the third quarter of 2013, we implemented a plan to outsource a significant portion of our IT platform. As a result, we transferred certain IT assets to the provider resulting in a loss on disposal of $910, which is included in interest and other (income) expense, net. The useful life of the remaining impacted assets has been shortened to the transition period, resulting in accelerated depreciation charges of $484 in cost of services during the three months ended September 30, 2013. | ||||||||||||||||
Assets Held for Sale | ||||||||||||||||
During the second quarter of 2013, we reclassified our Laramie, Wyoming facility, previously held for sale as of March 31, 2013, to assets held and used, as the held for sale criteria were no longer met due to the duration of the held for sale classification. The assets were measured at the carrying value of the assets before being classified as held for sale, adjusted for any depreciation expense that would have been recognized had the assets been continuously held and used. As a result of this measurement, we recognized $151 of depreciation expense, which is included in cost of services. | ||||||||||||||||
During the third quarter of 2013, we reclassified our Enid, Oklahoma facility, previously held for sale as of June 30, 2013, to assets held and used, as the held for sale criteria were no longer met due to the reopening of this site. The assets were measured at the carrying value of the assets before being classified as held for sale, adjusted for any depreciation expense that would have been recognized had the assets been continuously held and used. As a result of this measurement, we recognized $271 of depreciation expense, which is included in cost of services. | ||||||||||||||||
We evaluated the Greeley, Colorado facility and determined this long-lived asset totaling $3,500 met all the criteria for an asset held for sale and is presented as current assets held for sale on our Condensed Consolidated Balance Sheets. | ||||||||||||||||
Restructuring Charges | ||||||||||||||||
A summary of the activity under the restructuring plans as of September 30, 2013, is as follows: | ||||||||||||||||
Facility-Related Costs | ||||||||||||||||
Victoria | Decatur | Regina | Total | |||||||||||||
Balance as of December 31, 2012 | $ | 537 | $ | 86 | $ | 334 | $ | 957 | ||||||||
Expense (reversal) | (443 | ) | (56 | ) | — | (499 | ) | |||||||||
Payments, net of receipts for sublease | (77 | ) | (30 | ) | (328 | ) | (435 | ) | ||||||||
Foreign currency translation adjustment | — | — | (6 | ) | (6 | ) | ||||||||||
Balance as of September 30, 2013 | $ | 17 | $ | — | $ | — | $ | 17 | ||||||||
The reserves listed above are net of expected sublease rental income. We entered into a sublease agreement for our Victoria, Texas facility through the remainder of its lease term in 2014. We have recorded an accrual for certain property taxes we still owe in Victoria, which we expect to pay through 2014. We reversed $443 of the restructuring reserve based on an updated analysis of pass-through expenses. | ||||||||||||||||
The Regina, Saskatchewan and Decatur, Illinois restructuring plans were completed in the first quarter of 2013 and we do not expect to incur any additional restructuring liabilities in future periods for either of these locations. | ||||||||||||||||
We expect to pay $17 in our Domestic segment over the remaining term of the restructuring plans, including lease payments offset by sublease receipts, personal and real property taxes and other miscellaneous facility related costs. The cumulative amount paid as of September 30, 2013 related to the closures was $9,793 in our Domestic segment in facility-related costs and termination benefits. |
NET_LOSS_PER_SHARE
NET LOSS PER SHARE | 9 Months Ended |
Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' |
NET LOSS PER SHARE | ' |
NET LOSS PER SHARE | |
Basic net loss per common share is computed on the basis of our weighted average number of common shares outstanding. Diluted earnings per share is computed on the basis of our weighted average number of common shares outstanding plus the effect of dilutive stock options and non-vested restricted stock using the treasury stock method. Securities totaling 2,288,769 and 2,240,191 for the three and nine months ended September 30, 2013 and 2012, respectively, have been excluded from loss per share because their effect would have been anti-dilutive. |
PRINCIPAL_CLIENTS
PRINCIPAL CLIENTS | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||||||||||||||||
PRINCIPAL CLIENTS | ' | ||||||||||||||||||||||||
PRINCIPAL CLIENTS | |||||||||||||||||||||||||
The following table represents revenue concentration of our principal clients: | |||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Revenue | Percentage | Revenue | Percentage | Revenue | Percentage | Revenue | Percentage | ||||||||||||||||||
AT&T Services, Inc. and AT&T Mobility, LLC, subsidiaries of AT&T, Inc. (1) | $ | 14,868 | 25.4 | % | $ | 14,175 | 29.7 | % | $ | 42,770 | 25.5 | % | $ | 48,340 | 33.8 | % | |||||||||
T-Mobile USA, Inc., a subsidiary of Deutsche Telekom (2) | $ | 16,469 | 28.2 | % | $ | 13,584 | 28.5 | % | $ | 44,846 | 26.7 | % | $ | 42,274 | 29.6 | % | |||||||||
Comcast Cable Communications Management, LLC, subsidiary of Comcast Corporation (2) | $ | 10,822 | 18.5 | % | * | $ | 33,301 | 19.8 | % | * | |||||||||||||||
* less than 10% | |||||||||||||||||||||||||
(1) Revenue from this customer is generated through our Domestic and Asia Pacific segments. | |||||||||||||||||||||||||
(2) Revenue from this customer is generated through our Domestic, Asia Pacific and Latin America segments. | |||||||||||||||||||||||||
Our work for AT&T is covered by several contracts for a variety of different lines of AT&T business. These contracts expire between 2014 and 2015. Our initial master services agreement covering all AT&T work had been extended through January 31, 2013. On January 25, 2013, we entered into a new master services agreement with AT&T Services, Inc., which expires December 31, 2015 and may be extended upon mutual agreement, but may be terminated by AT&T with written notice. | |||||||||||||||||||||||||
On July 28, 2011, we entered into a new master services agreement (the “MSA”) with T-Mobile effective July 1, 2011, which covers all services that we provide to T-Mobile. The MSA replaces the previous master services agreement dated October 1, 2007, has an initial term of five years and will automatically renew for additional one-year periods thereafter, but may be terminated by T-Mobile upon 90 days written notice. | |||||||||||||||||||||||||
On July 25, 2011, we entered into a master services agreement with Comcast Cable Communications Management, LLC, which covers all services that we provide to Comcast (the “Comcast MSA”). The Comcast MSA has an initial term of three years and may be renewed or extended upon mutual agreement, but may be terminated by Comcast upon 90 days written notice. |
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||
DERIVATIVE INSTRUMENTS | ' | ||||
DERIVATIVE INSTRUMENTS | |||||
We use derivatives to partially offset our business exposure to foreign currency exchange risk. We enter into foreign currency exchange contracts to hedge our anticipated operating commitments that are denominated in foreign currencies. The contracts cover periods commensurate with expected exposure, generally three to nine months, and are principally unsecured foreign exchange contracts. The market risk exposure is essentially limited to risk related to currency rate movements. We operate in Canada, the Philippines, Costa Rica and Honduras. The functional currencies in Canada and the Philippines are the Canadian dollar and the Philippine peso, which are used to pay labor and other operating costs in those countries. However, our client contracts generate revenues that are paid to us primarily in U.S. dollars. In Costa Rica and Honduras, our functional currency is the U.S. dollar and the majority of our costs are denominated in U.S. dollars. As of September 30, 2013, we have not entered into any arrangements to hedge our exposure to fluctuations in the Costa Rican colon or the Honduran lempira relative to the U.S. dollar. | |||||
We have elected to follow cash flow hedge accounting in order to associate the results of the hedges with forecasted future expenses. The current mark-to-market gain or loss is recorded in accumulated other comprehensive income (“AOCI”) as a component of stockholders' equity and will be re-classified to operations as the forecasted expenses are incurred, typically within one year. During the three and nine months ended September 30, 2013 and 2012, our cash flow hedges were highly effective and there were no amounts charged for hedge ineffectiveness. | |||||
The following table shows the notional principal of our derivative instruments as of September 30, 2013: | |||||
Currency | Notional | ||||
Principal | |||||
Instruments qualifying as accounting hedges: | |||||
Foreign exchange contracts | Canadian dollar | 1,140 | |||
Foreign exchange contracts | Philippine peso | 1,562,360 | |||
Derivative assets and liabilities associated with our hedging activities are measured at gross fair value as described in Note 7 and are reflected as separate line items in our Condensed Consolidated Balance Sheets. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
Derivative Instruments and Hedging Activities | ||||||||||||||||
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 are generally classified as Level 2 in the fair value hierarchy. | ||||||||||||||||
Restructuring Charges | ||||||||||||||||
Accrued restructuring costs were valued using a discounted cash flow model. Significant assumptions used in determining the amount of the estimated liability for closing a facility are the estimated liability for future lease payments on vacant facilities and the discount rate utilized to determine the present value of the future expected cash flows. 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. | ||||||||||||||||
In the future, if we sublease for periods that differ from our assumption or if an actual buy-out of a lease differs from our estimate, we may be required to record a gain or loss. Future cash flows also include estimated property taxes through the remainder of the lease term, which are valued based upon historical tax payments. Given that the restructuring charges were valued using our internal estimates using a discounted cash flow model, we have classified the accrued restructuring costs as Level 3 in the fair value hierarchy. | ||||||||||||||||
Assets Held for Sale | ||||||||||||||||
We have committed to a plan to sell certain buildings and land at our closed facility in Greeley, Colorado. We received estimates of the selling prices of this real estate, and have reduced the value of the buildings and land to fair value, less costs to sell, or approximately $3,500 at September 30, 2013. The measurement of the fair value of the buildings was based upon our third-party real estate broker’s non-binding estimate of fair value using the observable market information regarding sale prices of comparable assets. As these inputs to the determination of fair value are based upon non-identical assets and use significant unobservable inputs, we have classified the assets as Level 3 in the fair value hierarchy. | ||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||
The following tables set forth our assets and liabilities measured at fair value on a recurring basis and a non-recurring basis by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | ||||||||||||||||
Assets and Liabilities Measured at Fair Value | ||||||||||||||||
on a Recurring Basis as of September 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | — | $ | — | $ | — | ||||||||
Total fair value of assets measured on a recurring basis | $ | — | $ | — | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 1,763 | $ | — | $ | 1,763 | ||||||||
Total fair value of liabilities measured on a recurring basis | $ | — | $ | 1,763 | $ | — | $ | 1,763 | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||||||||||
on a Recurring Basis as of December 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 733 | $ | — | $ | 733 | ||||||||
Total fair value of assets measured on a recurring basis | $ | — | $ | 733 | $ | — | $ | 733 | ||||||||
Liabilities: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 253 | $ | — | $ | 253 | ||||||||
Total fair value of liabilities measured on a recurring basis | $ | — | $ | 253 | $ | — | $ | 253 | ||||||||
Assets and Liabilities Measured at Fair Value on a | ||||||||||||||||
Non-Recurring Basis as of September 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Assets held for sale | $ | — | $ | — | $ | 3,500 | $ | 3,500 | ||||||||
Total fair value of assets measured on a non-recurring basis | $ | — | $ | — | $ | 3,500 | $ | 3,500 | ||||||||
Liabilities: | ||||||||||||||||
Accrued restructuring costs | $ | — | $ | — | $ | 17 | $ | 17 | ||||||||
Total fair value of liabilities measured on a non-recurring basis | $ | — | $ | — | $ | 17 | $ | 17 | ||||||||
Assets and Liabilities Measured at Fair Value on a | ||||||||||||||||
Non-Recurring Basis as of December 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Assets held for sale | $ | — | $ | — | $ | 4,969 | $ | 4,969 | ||||||||
Total fair value of assets measured on a non-recurring basis | $ | — | $ | — | $ | 4,969 | $ | 4,969 | ||||||||
Liabilities: | ||||||||||||||||
Accrued restructuring costs | $ | — | $ | — | $ | 957 | $ | 957 | ||||||||
Total fair value of liabilities measured on a non-recurring basis | $ | — | $ | — | $ | 957 | $ | 957 | ||||||||
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
DEBT | ' |
DEBT | |
On February 28, 2012, we terminated our secured line of credit with UMB Bank, which was effective through August 1, 2012, and replaced it with a secured revolving credit facility with Wells Fargo Bank. The Credit Agreement was effective February 28, 2012 and has a maturity date of February 28, 2016. The amount we may borrow under the Credit Agreement is the lesser of the borrowing base calculation and $10,000, and, so long as no default has occurred, we may increase the maximum availability to $20,000 in $2,500 increments. As of September 30, 2013, we had no outstanding borrowings on our credit facility and available capacity was $9,900, net of $100 of letters of credit backed by the facility. | |
On February 25, 2013, we entered into a Third Amendment to the Credit Agreement to agree on the financial covenants for 2013 and the first quarter of 2014. This amendment also clarified certain definitions and extended the term of the Credit Agreement one year to February 28, 2016. We were in compliance with all covenants as of September 30, 2013. |
SHAREBASED_COMPENSATION_AND_EM
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS | ' |
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS | |
Our share-based compensation arrangements include grants of stock options, restricted stock awards and deferred stock units under the StarTek, Inc. 2008 Equity Incentive Plan, certain awards granted outside of these plans and our Employee Stock Purchase Plan. The compensation cost that has been charged against income for stock option awards, restricted stock and deferred stock units for the three and nine months ended September 30, 2013 was $398 and $1,255 and for the three and nine months ended September 30, 2012 was $301 and $997, respectively, and is included in selling, general and administrative expense. As of September 30, 2013, there was $2,134 of total unrecognized compensation cost related to nonvested stock options and $7 related to nonvested restricted stock awards. That cost is expected to be recognized over a weighted average period of 2.22 and 1.08 years for the stock options and restricted stock awards, respectively. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | ||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||
Accumulated other comprehensive income (loss) consisted of the following items: | |||||||||||||||||||
Foreign Currency Translation Adjustment | Unrealized Gain (Loss) on Cash Flow Hedging Instruments | Total | |||||||||||||||||
Balance at December 31, 2012 | $ | 2,798 | $ | (269 | ) | $ | 2,529 | ||||||||||||
Foreign currency translation | (671 | ) | — | (671 | ) | ||||||||||||||
Reclassification to net income | — | (994 | ) | (994 | ) | ||||||||||||||
Unrealized (losses) | — | (1,250 | ) | (1,250 | ) | ||||||||||||||
Balance at September 30, 2013 | 2,127 | (2,513 | ) | (386 | ) | ||||||||||||||
Reclassifications out of accumulated other comprehensive income for the three and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Statement Where Net Income is Presented | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Gains and losses on cash flow hedges | |||||||||||||||||||
Foreign exchange contracts | $ | (1,099 | ) | $ | 237 | (925 | ) | 156 | Cost of services | ||||||||||
Foreign exchange contracts | (69 | ) | — | (69 | ) | — | Selling, general and administrative expenses | ||||||||||||
$ | (1,168 | ) | $ | 237 | $ | (994 | ) | $ | 156 | ||||||||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
SEGMENT INFORMATION | ' | |||||||
SEGMENT INFORMATION | ||||||||
Over the past several years, we have closed and opened several operating centers, which has changed the way in which management and our chief operating decision maker evaluate performance and allocate resources. As a result, during the quarter ended March 31, 2012, we revised our business segments, consistent with our management of the business and internal financial reporting structure. Specifically, we consolidated our U.S. and Canadian segments into our Domestic segment and created two new segments, Asia Pacific and Latin America, which were previously reported in our Offshore segment. As of September 30, 2013, our Domestic segment included the operations of seven facilities in the U.S. and one facility in Canada. Our Asia Pacific segment included the operations of three facilities in the Philippines and our Latin America segment included one facility in Costa Rica and one facility in Honduras. | ||||||||
We primarily evaluate segment operating performance in each reporting segment based on net sales, gross profit and working capital. Certain operating expenses are not allocated to each reporting segment; therefore, we do not present income statement information by reporting segment below the gross profit level. | ||||||||
Information about our reportable segments, which correspond to the geographic areas in which we operate, for the three and nine months ended September 30, 2013 and 2012 is as follows: | ||||||||
For the Three Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Revenue: | ||||||||
Domestic | $ | 30,164 | $ | 23,106 | ||||
Asia Pacific | 20,470 | 19,818 | ||||||
Latin America | 7,814 | 4,751 | ||||||
Total | $ | 58,448 | $ | 47,675 | ||||
Gross profit: | ||||||||
Domestic | $ | 2,963 | $ | 1,886 | ||||
Asia Pacific | 2,681 | 4,249 | ||||||
Latin America | 876 | (35 | ) | |||||
Total | $ | 6,520 | $ | 6,100 | ||||
For the Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Revenue: | ||||||||
Domestic | $ | 87,074 | $ | 72,066 | ||||
Asia Pacific | 60,031 | 58,083 | ||||||
Latin America | 20,729 | 12,806 | ||||||
Total | $ | 167,834 | $ | 142,955 | ||||
Gross profit: | ||||||||
Domestic | $ | 9,432 | $ | 3,154 | ||||
Asia Pacific | 7,048 | 12,272 | ||||||
Latin America | 389 | (717 | ) | |||||
Total | $ | 16,869 | $ | 14,709 | ||||
BASIS_OF_PRESENTATION_AND_SUMM1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Use of Estimates | ' |
Use of Estimates | |
The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they are determined to be necessary. | |
Recently Adopted and Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
In July 2013, the FASB issued ASU 2013-11, Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, an amendment to FASB Accounting Standards Codification (“ASC”) Topic 740, Income Taxes (“FASB ASC Topic 740”). This update clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this ASU is not expected to have a material impact on our financial statements. | |
In March 2013, the FASB issued ASU 2013-05 Topic 830 - Foreign Currency Matters (“ASU 2013-05”). ASU 2013-05 resolves the diversity in practice about whether Subtopic 810-10, Consolidation-Overall, or Subtopic 830-30, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. In addition, the amendments in this ASU resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. ASU 2013-05 is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The adoption of this ASU is not expected to have a material impact on our financial statements. |
IMPAIRMENT_LOSSES_AND_RESTRUCT1
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Schedule of Restructuring and Related Costs | ' | |||||||||||||||
A summary of the activity under the restructuring plans as of September 30, 2013, is as follows: | ||||||||||||||||
Facility-Related Costs | ||||||||||||||||
Victoria | Decatur | Regina | Total | |||||||||||||
Balance as of December 31, 2012 | $ | 537 | $ | 86 | $ | 334 | $ | 957 | ||||||||
Expense (reversal) | (443 | ) | (56 | ) | — | (499 | ) | |||||||||
Payments, net of receipts for sublease | (77 | ) | (30 | ) | (328 | ) | (435 | ) | ||||||||
Foreign currency translation adjustment | — | — | (6 | ) | (6 | ) | ||||||||||
Balance as of September 30, 2013 | $ | 17 | $ | — | $ | — | $ | 17 | ||||||||
PRINCIPAL_CLIENTS_Tables
PRINCIPAL CLIENTS (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Revenue by Major Customers | ' | ||||||||||||||||||||||||
The following table represents revenue concentration of our principal clients: | |||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Revenue | Percentage | Revenue | Percentage | Revenue | Percentage | Revenue | Percentage | ||||||||||||||||||
AT&T Services, Inc. and AT&T Mobility, LLC, subsidiaries of AT&T, Inc. (1) | $ | 14,868 | 25.4 | % | $ | 14,175 | 29.7 | % | $ | 42,770 | 25.5 | % | $ | 48,340 | 33.8 | % | |||||||||
T-Mobile USA, Inc., a subsidiary of Deutsche Telekom (2) | $ | 16,469 | 28.2 | % | $ | 13,584 | 28.5 | % | $ | 44,846 | 26.7 | % | $ | 42,274 | 29.6 | % | |||||||||
Comcast Cable Communications Management, LLC, subsidiary of Comcast Corporation (2) | $ | 10,822 | 18.5 | % | * | $ | 33,301 | 19.8 | % | * | |||||||||||||||
* less than 10% | |||||||||||||||||||||||||
(1) Revenue from this customer is generated through our Domestic and Asia Pacific segments. | |||||||||||||||||||||||||
(2) Revenue from this customer is generated through our Domestic, Asia Pacific and Latin America segments. |
DERIVATIVE_INSTRUMENTS_Tables
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ' | ||||
The following table shows the notional principal of our derivative instruments as of September 30, 2013: | |||||
Currency | Notional | ||||
Principal | |||||
Instruments qualifying as accounting hedges: | |||||
Foreign exchange contracts | Canadian dollar | 1,140 | |||
Foreign exchange contracts | Philippine peso | 1,562,360 | |||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring | ' | |||||||||||||||
The following tables set forth our assets and liabilities measured at fair value on a recurring basis and a non-recurring basis by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | ||||||||||||||||
Assets and Liabilities Measured at Fair Value | ||||||||||||||||
on a Recurring Basis as of September 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | — | $ | — | $ | — | ||||||||
Total fair value of assets measured on a recurring basis | $ | — | $ | — | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 1,763 | $ | — | $ | 1,763 | ||||||||
Total fair value of liabilities measured on a recurring basis | $ | — | $ | 1,763 | $ | — | $ | 1,763 | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||||||||||
on a Recurring Basis as of December 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 733 | $ | — | $ | 733 | ||||||||
Total fair value of assets measured on a recurring basis | $ | — | $ | 733 | $ | — | $ | 733 | ||||||||
Liabilities: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 253 | $ | — | $ | 253 | ||||||||
Total fair value of liabilities measured on a recurring basis | $ | — | $ | 253 | $ | — | $ | 253 | ||||||||
Assets and Liabilities Measured at Fair Value on a | ||||||||||||||||
Non-Recurring Basis as of September 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Assets held for sale | $ | — | $ | — | $ | 3,500 | $ | 3,500 | ||||||||
Total fair value of assets measured on a non-recurring basis | $ | — | $ | — | $ | 3,500 | $ | 3,500 | ||||||||
Liabilities: | ||||||||||||||||
Accrued restructuring costs | $ | — | $ | — | $ | 17 | $ | 17 | ||||||||
Total fair value of liabilities measured on a non-recurring basis | $ | — | $ | — | $ | 17 | $ | 17 | ||||||||
Assets and Liabilities Measured at Fair Value on a | ||||||||||||||||
Non-Recurring Basis as of December 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Assets held for sale | $ | — | $ | — | $ | 4,969 | $ | 4,969 | ||||||||
Total fair value of assets measured on a non-recurring basis | $ | — | $ | — | $ | 4,969 | $ | 4,969 | ||||||||
Liabilities: | ||||||||||||||||
Accrued restructuring costs | $ | — | $ | — | $ | 957 | $ | 957 | ||||||||
Total fair value of liabilities measured on a non-recurring basis | $ | — | $ | — | $ | 957 | $ | 957 | ||||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||
Schedule of Comprehensive Income (Loss) | ' | ||||||||||||||||||
Accumulated other comprehensive income (loss) consisted of the following items: | |||||||||||||||||||
Foreign Currency Translation Adjustment | Unrealized Gain (Loss) on Cash Flow Hedging Instruments | Total | |||||||||||||||||
Balance at December 31, 2012 | $ | 2,798 | $ | (269 | ) | $ | 2,529 | ||||||||||||
Foreign currency translation | (671 | ) | — | (671 | ) | ||||||||||||||
Reclassification to net income | — | (994 | ) | (994 | ) | ||||||||||||||
Unrealized (losses) | — | (1,250 | ) | (1,250 | ) | ||||||||||||||
Balance at September 30, 2013 | 2,127 | (2,513 | ) | (386 | ) | ||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||
Reclassifications out of accumulated other comprehensive income for the three and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Statement Where Net Income is Presented | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Gains and losses on cash flow hedges | |||||||||||||||||||
Foreign exchange contracts | $ | (1,099 | ) | $ | 237 | (925 | ) | 156 | Cost of services | ||||||||||
Foreign exchange contracts | (69 | ) | — | (69 | ) | — | Selling, general and administrative expenses | ||||||||||||
$ | (1,168 | ) | $ | 237 | $ | (994 | ) | $ | 156 | ||||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||
Information about our reportable segments, which correspond to the geographic areas in which we operate, for the three and nine months ended September 30, 2013 and 2012 is as follows: | ||||||||
For the Three Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Revenue: | ||||||||
Domestic | $ | 30,164 | $ | 23,106 | ||||
Asia Pacific | 20,470 | 19,818 | ||||||
Latin America | 7,814 | 4,751 | ||||||
Total | $ | 58,448 | $ | 47,675 | ||||
Gross profit: | ||||||||
Domestic | $ | 2,963 | $ | 1,886 | ||||
Asia Pacific | 2,681 | 4,249 | ||||||
Latin America | 876 | (35 | ) | |||||
Total | $ | 6,520 | $ | 6,100 | ||||
For the Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Revenue: | ||||||||
Domestic | $ | 87,074 | $ | 72,066 | ||||
Asia Pacific | 60,031 | 58,083 | ||||||
Latin America | 20,729 | 12,806 | ||||||
Total | $ | 167,834 | $ | 142,955 | ||||
Gross profit: | ||||||||
Domestic | $ | 9,432 | $ | 3,154 | ||||
Asia Pacific | 7,048 | 12,272 | ||||||
Latin America | 389 | (717 | ) | |||||
Total | $ | 16,869 | $ | 14,709 | ||||
ACQUISITIONS_Details
ACQUISITIONS (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 18, 2013 | Jul. 24, 2013 | Sep. 30, 2013 |
Ideal Dialogue Company [Member] | Healthcare Business Processing Outsourcing Company [Member] | Healthcare Business Processing Outsourcing Company [Member] | |
Business Acquisition [Line Items] | ' | ' | ' |
Acquisition of business, purchase price | $1,500 | $1,500 | ' |
Business acquisition, purchase price allocation, intangible assets acquired | 1,490 | ' | ' |
Payments to acquire business | ' | ' | $389 |
IMPAIRMENT_LOSSES_AND_RESTRUCT2
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES (Textuals) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Impairment of long-lived assets | $0 | $3,086 |
Domestic [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring reserve | 17 | ' |
Facility related costs paid | 9,793 | ' |
Operating Segments [Member] | Domestic [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Impairment of long-lived assets | ' | $3,086 |
Number of facilities impaired | ' | 2 |
Number of facilities, secured with new business | ' | 1 |
IMPAIRMENT_LOSSES_AND_RESTRUCT3
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES (Textuals 2) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 |
Restructuring and Related Activities [Abstract] | ' | ' |
Loss on disposal of IT assets | $910 | ' |
Accelerated depreciation on IT assets | 484 | ' |
Depreciation expense on reclassified assets | 271 | 151 |
Fair value of assets held for sale | $3,500 | ' |
IMPAIRMENT_LOSSES_AND_RESTRUCT4
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES (Summary of Activity, Restructuring Plans) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Domestic [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Ending Balance | $17 |
Facility Related Costs [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Beginning Balance | 957 |
Expense (reversal) | -499 |
Payments, net of receipts for sublease | -435 |
Foreign currency translation adjustment | -6 |
Facility Related Costs [Member] | Victoria [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Beginning Balance | 537 |
Expense (reversal) | -443 |
Payments, net of receipts for sublease | -77 |
Foreign currency translation adjustment | 0 |
Ending Balance | 17 |
Facility Related Costs [Member] | Decatur [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Beginning Balance | 86 |
Expense (reversal) | -56 |
Payments, net of receipts for sublease | -30 |
Foreign currency translation adjustment | 0 |
Ending Balance | 0 |
Facility Related Costs [Member] | Regina [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Beginning Balance | 334 |
Expense (reversal) | 0 |
Payments, net of receipts for sublease | -328 |
Foreign currency translation adjustment | -6 |
Ending Balance | 0 |
Facility Related Costs [Member] | Domestic [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Ending Balance | $17 |
NET_LOSS_PER_SHARE_Details
NET LOSS PER SHARE (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 2,288,769 | 2,240,191 | 2,288,769 | 2,240,191 |
PRINCIPAL_CLIENTS_Details
PRINCIPAL CLIENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 28, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 25, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | ||||||||||
AT&T Services, Inc. and AT&T Mobility, LLC, subsidiaries of AT&T Inc. [Member] | AT&T Services, Inc. and AT&T Mobility, LLC, subsidiaries of AT&T Inc. [Member] | AT&T Services, Inc. and AT&T Mobility, LLC, subsidiaries of AT&T Inc. [Member] | AT&T Services, Inc. and AT&T Mobility, LLC, subsidiaries of AT&T Inc. [Member] | T-Mobile USA, Inc., a subsidiary of Deutsche Telekom [Member] | T-Mobile USA, Inc., a subsidiary of Deutsche Telekom [Member] | T-Mobile USA, Inc., a subsidiary of Deutsche Telekom [Member] | T-Mobile USA, Inc., a subsidiary of Deutsche Telekom [Member] | T-Mobile USA, Inc., a subsidiary of Deutsche Telekom [Member] | Comcast Cable Communications Management LLC, subsidiary of Comcast Corporation [Member] | Comcast Cable Communications Management LLC, subsidiary of Comcast Corporation [Member] | Comcast Cable Communications Management LLC, subsidiary of Comcast Corporation [Member] | |||||||||||
Revenue, Major Customers [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Revenue | $14,868 | [1] | $14,175 | [1] | $42,770 | [1] | $48,340 | [1] | ' | $16,469 | [2] | $13,584 | [2] | $44,846 | [2] | $42,274 | [2] | ' | $10,822 | [2] | $33,301 | [2] |
Revenue concentration, percentage | 25.40% | [1] | 29.70% | [1] | 25.50% | [1] | 33.80% | [1] | ' | 28.20% | [2] | 28.50% | [2] | 26.70% | [2] | 29.60% | [2] | ' | 18.50% | [2] | 19.80% | [2] |
Initial term of the Master Service Agreement | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | '3 years | ' | ' | ||||||||||
Master Services Agreement renewal term | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ||||||||||
Notice of termination option of the initial term | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | '90 days | ' | ' | ||||||||||
[1] | Revenue from this customer is generated through our Domestic and Asia Pacific segments. | |||||||||||||||||||||
[2] | Revenue from this customer is generated through our Domestic, Asia Pacific and Latin America segments. |
DERIVATIVE_INSTRUMENTS_Textual
DERIVATIVE INSTRUMENTS (Textual) (Details) (Foreign Exchange Contract [Member]) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Minimum [Member] | Maximum [Member] | Canada [Member] | Philippines [Member] | |
CAD | PHP | |||
Derivative [Line Items] | ' | ' | ' | ' |
Contract period | '3 months | '9 months | ' | ' |
Derivative, notional amount | ' | ' | 1,140 | 1,562,360 |
FAIR_VALUE_MEASUREMENTS_Recurr
FAIR VALUE MEASUREMENTS (Recurring and Nonrecurring) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets and Liabilities at Fair Value Measured on Recurring Basis | ' | ' |
Liabilities, Foreign exchange contracts | $1,763 | $253 |
Assets and Liabilities at Fair Value on a Nonrecurring Basis | ' | ' |
Assets held for sale | 3,500 | ' |
Recurring [Member] | ' | ' |
Assets and Liabilities at Fair Value Measured on Recurring Basis | ' | ' |
Assets, Foreign exchange contracts | 0 | 733 |
Total fair value of assets measured on a recurring basis | 0 | 733 |
Liabilities, Foreign exchange contracts | 1,763 | 253 |
Total fair value of liabilities measured on a recurring basis | 1,763 | 253 |
Nonrecurring [Member] | ' | ' |
Assets and Liabilities at Fair Value on a Nonrecurring Basis | ' | ' |
Assets held for sale | 3,500 | 4,969 |
Total fair value of assets measured on a non-recurring basis | 3,500 | 4,969 |
Accrued restructuring costs | 17 | 957 |
Total fair value of liabilities measured on a non-recurring basis | 17 | 957 |
Level 1 [Member] | Recurring [Member] | ' | ' |
Assets and Liabilities at Fair Value Measured on Recurring Basis | ' | ' |
Assets, Foreign exchange contracts | 0 | 0 |
Total fair value of assets measured on a recurring basis | 0 | 0 |
Liabilities, Foreign exchange contracts | 0 | 0 |
Total fair value of liabilities measured on a recurring basis | 0 | 0 |
Level 1 [Member] | Nonrecurring [Member] | ' | ' |
Assets and Liabilities at Fair Value on a Nonrecurring Basis | ' | ' |
Assets held for sale | 0 | 0 |
Total fair value of assets measured on a non-recurring basis | 0 | 0 |
Accrued restructuring costs | 0 | 0 |
Total fair value of liabilities measured on a non-recurring basis | 0 | 0 |
Level 2 [Member] | Recurring [Member] | ' | ' |
Assets and Liabilities at Fair Value Measured on Recurring Basis | ' | ' |
Assets, Foreign exchange contracts | 0 | 733 |
Total fair value of assets measured on a recurring basis | 0 | 733 |
Liabilities, Foreign exchange contracts | 1,763 | 253 |
Total fair value of liabilities measured on a recurring basis | 1,763 | 253 |
Level 2 [Member] | Nonrecurring [Member] | ' | ' |
Assets and Liabilities at Fair Value on a Nonrecurring Basis | ' | ' |
Assets held for sale | 0 | 0 |
Total fair value of assets measured on a non-recurring basis | 0 | 0 |
Accrued restructuring costs | 0 | 0 |
Total fair value of liabilities measured on a non-recurring basis | 0 | 0 |
Level 3 [Member] | Recurring [Member] | ' | ' |
Assets and Liabilities at Fair Value Measured on Recurring Basis | ' | ' |
Assets, Foreign exchange contracts | 0 | 0 |
Total fair value of assets measured on a recurring basis | 0 | 0 |
Liabilities, Foreign exchange contracts | 0 | 0 |
Total fair value of liabilities measured on a recurring basis | 0 | 0 |
Level 3 [Member] | Nonrecurring [Member] | ' | ' |
Assets and Liabilities at Fair Value on a Nonrecurring Basis | ' | ' |
Assets held for sale | 3,500 | 4,969 |
Total fair value of assets measured on a non-recurring basis | 3,500 | 4,969 |
Accrued restructuring costs | 17 | 957 |
Total fair value of liabilities measured on a non-recurring basis | $17 | $957 |
FAIR_VALUE_MEASUREMENTS_Textua
FAIR VALUE MEASUREMENTS (Textuals) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Fair Value Disclosures [Abstract] | ' |
Fair value of assets held for sale | $3,500 |
DEBT_Details
DEBT (Details) (Revolving Credit Facility [Member], USD $) | Sep. 30, 2013 |
Revolving Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Remaining borrowing capacity | $10,000,000 |
Maximum borrowing capacity | 20,000,000 |
Increments for additional borrowing | 2,500,000 |
Borrowings outstanding under revolving credit facility | 0 |
Current borrowing capacity | 9,900,000 |
Amount outstanding for undrawn letters of credit issued under revolving credit facility | $100,000 |
SHAREBASED_COMPENSATION_AND_EM1
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (Textuals (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Stock Awards Activity [Line Items] | ' | ' | ' | ' |
Total compensation cost | $398 | $301 | $1,255 | $997 |
Stock Options [Member] | ' | ' | ' | ' |
Stock Awards Activity [Line Items] | ' | ' | ' | ' |
Total unrecognized compensation cost, stock options | 2,134 | ' | 2,134 | ' |
Weighted-average period that cost is expected to be recognized | ' | ' | '2 years 2 months 20 days | ' |
Restricted Stock [Member] | ' | ' | ' | ' |
Stock Awards Activity [Line Items] | ' | ' | ' | ' |
Total unrecognized compensation cost, restricted stock | $7 | ' | $7 | ' |
Weighted-average period that cost is expected to be recognized | ' | ' | '1 year 28 days | ' |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' |
Foreign Currency Translation Adjustment - Beginning balance | $2,798 |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments - Beginning balance | -269 |
Total - Beginning balance | 2,529 |
Foreign currency translation | -671 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | -994 |
Unrealized losses | -1,250 |
Foreign Currency Translation Adjustment - Ending balance | 2,127 |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments - Ending balance | -2,513 |
Total - Ending balance | ($386) |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Reclassification (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Cost of services | $51,928 | $41,575 | $150,965 | $128,246 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Foreign Exchange Contract [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Cost of services | ($1,099) | $237 | ($925) | $156 |
SEGMENT_INFORMATION_Textual_De
SEGMENT INFORMATION (Textual) (Details) | 9 Months Ended |
Sep. 30, 2013 | |
segment | |
Segment Reporting Information [Line Items] | ' |
Number of new operating segments | 2 |
Domestic [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Number of operating facilities | 7 |
Canada [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Number of operating facilities | 1 |
Asia Pacific [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Number of operating facilities | 3 |
Costa Rica [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Number of operating facilities | 1 |
Honduras [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Number of operating facilities | 1 |
SEGMENT_INFORMATION_Segment_Re
SEGMENT INFORMATION (Segment Reporting) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | $58,448 | $47,675 | $167,834 | $142,955 |
Gross profit | 6,520 | 6,100 | 16,869 | 14,709 |
Domestic [Member] | Reportable Geographical Components [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 30,164 | 23,106 | 87,074 | 72,066 |
Gross profit | 2,963 | 1,886 | 9,432 | 3,154 |
Latin America [Member] | Reportable Geographical Components [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 7,814 | 4,751 | 20,729 | 12,806 |
Gross profit | 876 | -35 | 389 | -717 |
Asia Pacific [Member] | Reportable Geographical Components [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 20,470 | 19,818 | 60,031 | 58,083 |
Gross profit | $2,681 | $4,249 | $7,048 | $12,272 |