DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION | 3 Months Ended | |
Mar. 31, 2015 | 5-May-15 | |
Document and Entity Information Abstract | ||
Entity Registrant Name | StarTek, Inc. | |
Entity Central Index Key | 1031029 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 15,524,568 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue | $63,653 | $63,209 |
Cost of services | 57,536 | 54,991 |
Gross profit | 6,117 | 8,218 |
Selling, general and administrative expenses | 8,061 | 8,249 |
Restructuring charges | 806 | 191 |
Operating loss | -2,750 | -222 |
Interest and other income (expense), net | -238 | -128 |
Loss before income taxes | -2,988 | -350 |
Income tax expense | 187 | 150 |
Net loss | -3,175 | -500 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | -67 | -112 |
Change in fair value of derivative instruments | 8 | 355 |
Comprehensive loss | ($3,234) | ($257) |
Net loss per common share - basic and diluted (in usd per share) | ($0.21) | ($0.03) |
Weighted average common shares outstanding - basic and diluted (in shares) | 15,417 | 15,377 |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $6,465 | $5,306 |
Trade accounts receivable, net | 45,797 | 46,103 |
Derivative asset | 17 | 48 |
Prepaid expenses | 3,465 | 2,257 |
Other current assets | 1,170 | 794 |
Total current assets | 56,914 | 54,508 |
Property, plant and equipment, net | 32,398 | 28,180 |
Long-term deferred income tax assets | 1,386 | 1,429 |
Intangible assets, net | 2,512 | 2,609 |
Goodwill | 4,136 | 4,136 |
Other long-term assets | 2,892 | 2,931 |
Total assets | 100,238 | 93,793 |
Current liabilities: | ||
Accounts payable | 10,812 | 10,434 |
Accrued liabilities: | ||
Accrued payroll | 7,019 | 5,522 |
Accrued compensated absences | 2,173 | 2,309 |
Other accrued liabilities | 1,122 | 3,040 |
Line of credit | 9,286 | 4,640 |
Derivative liability | 1,210 | 1,250 |
Deferred income tax liabilities | 991 | 965 |
Other current liabilities | 4,604 | 3,512 |
Total current liabilities | 37,217 | 31,672 |
Deferred rent | 1,897 | 1,593 |
Long-term obligations under capital leases | 7,826 | 4,264 |
Other liabilities | 1,303 | 1,583 |
Total liabilities | 48,243 | 39,112 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, 32,000,000 non-convertible shares, $0.01 par value, authorized; 15,425,275 and 15,414,803 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 154 | 154 |
Additional paid-in capital | 76,604 | 76,056 |
Accumulated other comprehensive loss | -884 | -825 |
Accumulated deficit | -23,879 | -20,704 |
Total stockholders' equity | 51,995 | 54,681 |
Total liabilities and stockholders' equity | $100,238 | $93,793 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 15,425,275 | 15,414,803 |
Common stock, shares outstanding | 15,425,275 | 15,414,803 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities | ||
Net loss | ($3,175) | ($500) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 3,036 | 2,356 |
Losses on disposal of assets | 0 | 5 |
Share-based compensation expense | 496 | 402 |
Amortization of deferred gain on sale leaseback transaction | -57 | -64 |
Deferred income taxes | 26 | 168 |
Income tax benefit related to other comprehensive income | 0 | -213 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable, net | 270 | -3,028 |
Prepaid expenses and other assets | -1,561 | 838 |
Accounts payable | 1,441 | -218 |
Accrued and other liabilities | 46 | -1,080 |
Net cash provided by (used in) operating activities | 522 | -1,334 |
Investing Activities | ||
Proceeds from note receivable | 0 | 159 |
Purchases of property, plant and equipment | -3,509 | -2,354 |
Cash paid for prior period acquisitions of businesses | -234 | -199 |
Net cash used in investing activities | -3,743 | -2,394 |
Financing Activities | ||
Proceeds from stock option exercises | 0 | 24 |
Proceeds from the issuance of common stock | 52 | 27 |
Proceeds from line of credit | 66,082 | 41,760 |
Principal payments on line of credit | -61,436 | -42,254 |
Principal payments on long-term debt | -92 | |
Principal payments on capital lease obligations | -199 | -51 |
Net cash provided by (used in) financing activities | 4,407 | -494 |
Effect of exchange rate changes on cash | -27 | 42 |
Net increase (decrease) in cash and cash equivalents | 1,159 | -4,180 |
Cash and cash equivalents at beginning of period | 5,306 | 10,989 |
Cash and cash equivalents at end of period | 6,465 | 6,809 |
Supplemental Disclosure of Noncash Investing Activities | ||
Assets acquired through capital lease | $4,840 |
BASIS_OF_PRESENTATION_AND_SUMM
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("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 months ended March 31, 2015, are not necessarily indicative of operating results that may be expected during any other interim period of 2015 or the year ending December 31, 2015. | |
The consolidated balance sheet as of December 31, 2014, included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by 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 fiscal year ended December 31, 2014. | |
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. | |
Recent Accounting Pronouncements | |
In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected by the amendments in ASU 2015-03. ASU 2015-03 will be effective for fiscal years beginning after December 15, 2015. We are currently evaluating the impact that the adoption of ASU 2015-03 may have on our consolidated financial statements or disclosures. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 amends the guidance for revenue recognition to replace numerous, industry-specific requirements and converges areas under this topic with those of the International Financial Reporting Standards. The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016; however, in April 2015, the FASB voted to propose a one-year deferral of the effective date. The proposed deferral may permit early adoption, but would not allow adoption any earlier than the original effective date of the standard. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We are currently assessing the impact the adoption of ASU 2014-09, including possible transition alternatives, will have on our financial statements. |
ACQUISITION
ACQUISITION | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Combinations [Abstract] | |||||
ACQUISITIONS | ACQUISITION | ||||
Collection Center, Inc. | |||||
On October 1, 2014, we acquired Collection Center, Inc. ("CCI"), a receivables management company for approximately $4,105, net of interest incurred. CCI specializes in providing collection services primarily in the healthcare industry and also in the financial services, utility and commercial industries. | |||||
We paid $2,610 of the purchase price in cash on the acquisition date with the remaining balance to be paid quarterly by September 2016. The remaining payments may be adjusted if certain quarterly revenue targets are not met. Minimal acquisition-related expenses were paid, which were 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. | |||||
We finalized our purchase price allocation during the three months ended March 31, 2015 and there were no adjustments to the preliminary estimates of fair value assigned at the acquisition date. | |||||
Acquisition Date Fair Value | |||||
Customer relationships | $ | 1,840 | |||
Trade name | 130 | ||||
Goodwill | 2,135 | ||||
Total purchase price | $ | 4,105 | |||
The customer relationships and trade name have estimated useful lives of eight years and seven years, respectively. The goodwill recognized was attributable primarily to the acquired workforce and further expansion into the health care industry. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS (Notes) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||
Goodwill | |||||||||||||||
The goodwill of $4,136 recognized from our acquisitions during 2013 and 2014 was assigned to our Domestic segment. The tax basis of the goodwill is deductible for income tax purposes. | |||||||||||||||
Intangible Assets | |||||||||||||||
The following table presents our intangible assets as of March 31, 2015: | |||||||||||||||
Gross Intangibles | Accumulated Amortization | Net Intangibles | Weighted Average Amortization Period (years) | ||||||||||||
Developed technology | $ | 390 | $ | 97 | $ | 293 | 3.5 | ||||||||
Customer base | 2,310 | 258 | 2,052 | 4.25 | |||||||||||
Trade name | 200 | 33 | 167 | 3.41 | |||||||||||
Noncompete agreement | 10 | 10 | — | ||||||||||||
$ | 2,910 | $ | 398 | $ | 2,512 | 4.11 | |||||||||
Expected future amortization of intangible assets as of March 31, 2015 is as follows: | |||||||||||||||
Year Ending December 31, | Amount | ||||||||||||||
Remainder of 2015 | $ | 290 | |||||||||||||
2016 | 354 | ||||||||||||||
2017 | 343 | ||||||||||||||
2018 | 343 | ||||||||||||||
2019 | 334 | ||||||||||||||
Thereafter | 848 | ||||||||||||||
RESTRUCTURING_CHARGES
RESTRUCTURING CHARGES | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES | ||||||||||||||||
Restructuring Charges | |||||||||||||||||
The table below summarizes the balance of accrued restructuring costs, which is included in other current liabilities in our consolidated balance sheets, and the changes during the three months ended March 31, 2015: | |||||||||||||||||
Jonesboro | Costa Rica | Corporate | Total | ||||||||||||||
Balance as of December 31, 2014 | $ | 64 | $ | 9 | $ | 32 | $ | 105 | |||||||||
Expense (reversal) | (14 | ) | — | 4 | (10 | ) | |||||||||||
Payments | (25 | ) | (9 | ) | (7 | ) | (41 | ) | |||||||||
Balance as of March 31, 2015 | $ | 25 | $ | — | $ | 29 | $ | 54 | |||||||||
In February 2014, we announced the closure of our Jonesboro, Arkansas facility, which ceased operations in the second quarter of 2014 when the business transitioned to another facility. We established a restructuring reserve of $192 for employee related costs and recognized additional charges of $609 when the facility closed. The remaining costs are expected to be paid out through 2015. We also recognized a net gain of $256 related to the early termination of our lease. | |||||||||||||||||
In June 2014, we announced the closure of our Heredia, Costa Rica facility, included in our Latin America segment, which ceased operations in the third quarter of 2014. We established a restructuring reserve of $1,004 for employee related costs and recognized additional charges in the third quarter of 2014 of $338 when the facility closed. The restructuring charges for those employees who continued to work after the notification date were recognized over the service period. The restructuring plan was complete in the first quarter of 2015 and we do not expect to incur any additional restructuring liabilities in future periods for this location. | |||||||||||||||||
During 2014, we continued to pursue operating efficiencies through streamlining our organizational structure and leveraging our shared services centers in low-cost regions. We eliminated several positions as a result and incurred restructuring charges of $279. We expect to pay the remaining costs through 2015. | |||||||||||||||||
During 2014, we moved forward with our initiative to outsource our data centers and move to a hosted solutions model. We recognized $2,388 of restructuring charges through March 31, 2015. Additional transition costs will be recognized through 2015 as restructuring charges as incurred in operating income and are expected to be approximately $200. |
NET_LOSS_PER_SHARE
NET LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2015 | |
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 2,493,720 and 2,359,409 for the three months ended March 31, 2015 and 2014, respectively, have been excluded from loss per share because their effect would have been anti-dilutive. |
PRINCIPAL_CLIENTS
PRINCIPAL CLIENTS | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||
PRINCIPAL CLIENTS | PRINCIPAL CLIENTS | ||||||||||||||
The following table represents revenue concentration of our principal clients: | |||||||||||||||
Three Months Ended March 31, | |||||||||||||||
2015 | 2014 | ||||||||||||||
Revenue | Percentage | Revenue | Percentage | ||||||||||||
T-Mobile USA, Inc., a subsidiary of Deutsche Telekom (2) | $ | 18,089 | 28.4 | % | $ | 18,639 | 29.5 | % | |||||||
AT&T Services, Inc. and AT&T Mobility, LLC, subsidiaries of AT&T, Inc. (1) | $ | 10,740 | 16.9 | % | $ | 15,344 | 24.3 | % | |||||||
Comcast Cable Communications Management, LLC, subsidiary of Comcast Corporation (2) | $ | 8,878 | 13.9 | % | $ | 10,959 | 17.3 | % | |||||||
(1) Revenue from this customer is generated through our Domestic and Asia Pacific segments. | |||||||||||||||
(2) Revenue from this customer is generated through our Domestic and Asia Pacific segments in 2014 and 2015 and through our Latin America segment in 2014. | |||||||||||||||
We enter into contracts and perform services with our major clients that fall under the scope of master service agreements (MSAs) with statements of work (SOWs) specific to each line of business. These MSAs and SOWs may automatically renew or be extended by mutual agreement and are generally terminable by the customer or us with prior written notice. | |||||||||||||||
On July 28, 2011, we entered into a new MSA with T-Mobile effective July 1, 2011, which 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 January 25, 2013, we entered into a new MSA 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 January 4, 2014, we entered into a new MSA with Comcast, effective June 22, 2013. The new MSA has an initial term of one year and will automatically renew for additional one-year periods unless either party gives notice of cancellation. Comcast may terminate the agreement upon 90 days written notice. Neither party gave notice of termination; therefore, the contract has renewed for the year ending June 22, 2015, but Comcast may terminate the agreement upon 90 days written notice. |
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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, including forward contracts and range forward contracts (a transaction where both a call option is purchased and a put option is sold). The contracts cover periods commensurate with expected exposure, generally three to twelve 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 and Honduras. The functional currencies in Canada and the Philippines are | |||||||
the Canadian dollar and the Philippine peso, respectively, which are used to pay labor and other operating costs in those | |||||||
countries. We provide funds for these operating costs as our client contracts generate revenues, which are paid in U.S. dollars. | |||||||
In Honduras, our functional currency is the U.S. dollar and the majority of our costs are denominated in U.S. dollars. As of March 31, 2015, we have not entered into any arrangements to hedge our exposure to fluctuations in the Honduran lempira relative to the U.S. dollar. | |||||||
We have elected to designate our derivatives as cash flow hedges in order to associate the results of the hedges with forecasted expenses. Unrealized gains and losses are recorded in accumulated other comprehensive income (“AOCI”) and will be re-classified to operations as the forecasted expenses are incurred, typically within one year. During the three months ended March 31, 2015 and 2014, our cash flow hedges were highly effective and hedge ineffectiveness was not material. | |||||||
The following table shows the notional amount of our foreign exchange cash flow hedging instruments as of March 31, 2015: | |||||||
Local Currency Notional Amount | U.S. Dollar Notional Amount | ||||||
Canadian Dollar | 10,600 | $ | 9,102 | ||||
Philippine Peso | 1,590,830 | 35,734 | |||||
$ | 44,836 | ||||||
Derivative assets and liabilities associated with our hedging activities are measured at gross fair value as described in Note 8, "Fair Value Measurements", and are reflected as separate line items in our consolidated balance sheets. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS | |||||||||||||||
The carrying value of our cash and cash equivalents, accounts receivable, accounts payable and line of credit approximate fair value because of their short-term nature. | ||||||||||||||||
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 the derivatives are 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 consolidated statements of operations and comprehensive income (loss). | ||||||||||||||||
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. | ||||||||||||||||
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 March 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 17 | $ | — | $ | 17 | ||||||||
Total fair value of assets measured on a recurring basis | $ | — | $ | 17 | $ | — | $ | 17 | ||||||||
Liabilities: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 1,210 | $ | — | $ | 1,210 | ||||||||
Total fair value of liabilities measured on a recurring basis | $ | — | $ | 1,210 | $ | — | $ | 1,210 | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||||||||||
on a Recurring Basis as of December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 48 | $ | — | $ | 48 | ||||||||
Total fair value of assets measured on a recurring basis | $ | — | $ | 48 | $ | — | $ | 48 | ||||||||
Liabilities: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 1,250 | $ | — | $ | 1,250 | ||||||||
Total fair value of liabilities measured on a recurring basis | $ | — | $ | 1,250 | $ | — | $ | 1,250 | ||||||||
Liabilities Measured at Fair Value on a | ||||||||||||||||
Non-Recurring Basis as of March 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Accrued restructuring costs | $ | — | $ | — | $ | 54 | $ | 54 | ||||||||
Total fair value of liabilities measured on a non-recurring basis | $ | — | $ | — | $ | 54 | $ | 54 | ||||||||
Liabilities Measured at Fair Value on a | ||||||||||||||||
Non-Recurring Basis as of December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Accrued restructuring costs | $ | — | $ | — | $ | 105 | $ | 105 | ||||||||
Total fair value of liabilities measured on a non-recurring basis | $ | — | $ | — | $ | 105 | $ | 105 | ||||||||
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT |
Line of Credit | |
Effective February 28, 2012, we entered into a secured revolving credit facility ("Credit Agreement") with Wells Fargo Bank, which 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 $20,000. As of March 31, 2015, we had $9,286 outstanding borrowings on our credit facility and available capacity was $10,654, net of $60 of letters of credit backed by the facility. | |
Under the Credit Agreement, we are subject to certain standard affirmative and negative covenants, including the following financial covenants: 1) maintaining a Minimum Adjusted EBITDA, as defined in the Credit Agreement, of no less than the cumulative month-end minimum amounts set forth in an amendment to the Credit Agreement and 2) limiting non-financed capital expenditures to no more than the cumulative month-end maximum amounts set forth in an amendment to the Credit Agreement. We were in compliance with all such covenants as of March 31, 2015. | |
In March 2015, the borrowing base was increased to $20,000 and the Company and Wells Fargo agreed on the financial covenants for 2015 and the first quarter of 2016, constituting the Ninth Amendment to the Credit Agreement. Previous amendments are disclosed in our 2014 Annual Report on Form 10-K. Subsequent to quarter-end, the Credit Agreement was replaced with a new facility with BMO Harris Bank N.A., see Note 13 "Subsequent Events". | |
Financing Agreement | |
We entered into a financing agreement for the purchase of certain software licenses and related hardware for approximately $1,000, which were delivered and placed into service in April 2014. Monthly payments commenced July 2014. As of March 31, 2015, the current and long-term portion was $380 and $408, respectively, and at December 31, 2014, the current and long-term portion was $373 and $506, respectively. The amounts are included in other current liabilities and other liabilities on the consolidated balance sheets. | |
Capital Lease Obligations | |
We had long-term obligations under capital leases of $7,826 and $4,264 as of March 31, 2015 and December 31, 2014, respectively. Long-term obligations under capital leases previously presented for prior periods have been reclassified to conform to the current presentation. The current obligations under capital leases of $1,837 and $810 as of March 31, 2015 and December 31, 2014, respectively, are included in other current liabilities on the consolidated balance sheets. The related assets are included in property, plant and equipment in the consolidated balance sheets. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION |
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 expense that has been charged against income for stock option awards and restricted stock for the three months ended March 31, 2015 and 2014 was $496 and $402, respectively, and is included in selling, general and administrative expense. As of March 31, 2015, there was $1,942 of total unrecognized compensation expense related to nonvested stock options, which is expected to be recognized over a weighted-average period of 2.0 years. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||
Accumulated other comprehensive loss consisted of the following items: | ||||||||||||
Foreign Currency Translation Adjustment | Derivatives Accounted for as Cash Flow Hedges | Total | ||||||||||
Balance at December 31, 2014 | $ | 1,486 | $ | (2,311 | ) | $ | (825 | ) | ||||
Foreign currency translation | (67 | ) | — | (67 | ) | |||||||
Reclassification to operations | — | 622 | 622 | |||||||||
Unrealized gains (losses) | — | (614 | ) | (614 | ) | |||||||
Balance at March 31, 2015 | $ | 1,419 | $ | (2,303 | ) | $ | (884 | ) | ||||
Reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2015 and 2014 were as follows: | ||||||||||||
Details about Accumulated Other Comprehensive Loss Components | Amount Reclassified from Accumulated Other Comprehensive Loss | Affected Line Item in the Consolidated Statements of Operations and Comprehensive Loss | ||||||||||
Three Months Ended March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Losses on cash flow hedges | ||||||||||||
Foreign exchange contracts | $ | 576 | $ | 1,222 | Cost of services | |||||||
Foreign exchange contracts | 46 | 93 | Selling, general and administrative expenses | |||||||||
Total reclassifications for the period | $ | 622 | $ | 1,315 | ||||||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION | |||||||
We operate our business within three reportable segments, based on the geographic regions in which our services are rendered: Domestic, Asia Pacific and Latin America. As of March 31, 2015, our Domestic segment included the operations of nine facilities in the U.S. and one facility in Canada. Our Asia Pacific segment included the operations of four facilities in the Philippines and our Latin America segment included two facilities in Honduras. Operations at our facility in Costa Rica, which were included in our Latin America segment, ceased in August 2014. | ||||||||
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 months ended March 31, 2015 and 2014 is as follows: | ||||||||
For the Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Revenue: | ||||||||
Domestic | $ | 35,624 | $ | 33,307 | ||||
Asia Pacific | 20,331 | 21,052 | ||||||
Latin America | 7,698 | 8,850 | ||||||
Total | $ | 63,653 | $ | 63,209 | ||||
Gross profit: | ||||||||
Domestic | $ | 2,407 | $ | 4,543 | ||||
Asia Pacific | 2,522 | 3,604 | ||||||
Latin America | 1,188 | 71 | ||||||
Total | $ | 6,117 | $ | 8,218 | ||||
SUBSEQUENT_EVENTS_Notes
SUBSEQUENT EVENTS (Notes) | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS |
Merger Agreement | |
On May 11, 2015, we entered into a definitive agreement to acquire Accent Marketing Services, L.L.C., a customer engagement outsourcing agency servicing the telecommunications, retail, consumer products, technology and financial services industries for approximately $16,000 in cash. | |
BMO Harris Bank Credit Facility | |
On April 29, 2015, we terminated our $20,000 secured revolving credit facility with Wells Fargo, which was effective through February 28, 2016, and replaced it with a secured revolving credit facility with BMO Harris Bank N.A. The credit agreement is effective through April 2020 and the amount we may borrow under the agreement is the lesser of the borrowing base calculation and $50,000, and so long as no default has occurred and with the administrative agent’s consent, we may increase the maximum availability to $70,000 in $5,000 increments. | |
Enid, Oklahoma | |
In April 2015, we made the decision to discontinue our operations in Enid, Oklahoma. |
BASIS_OF_PRESENTATION_AND_SUMM1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
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. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected by the amendments in ASU 2015-03. ASU 2015-03 will be effective for fiscal years beginning after December 15, 2015. We are currently evaluating the impact that the adoption of ASU 2015-03 may have on our consolidated financial statements or disclosures. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 amends the guidance for revenue recognition to replace numerous, industry-specific requirements and converges areas under this topic with those of the International Financial Reporting Standards. The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016; however, in April 2015, the FASB voted to propose a one-year deferral of the effective date. The proposed deferral may permit early adoption, but would not allow adoption any earlier than the original effective date of the standard. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We are currently assessing the impact the adoption of ASU 2014-09, including possible transition alternatives, will have on our financial statements. |
ACQUISITION_Tables
ACQUISITION (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Combinations [Abstract] | |||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | We finalized our purchase price allocation during the three months ended March 31, 2015 and there were no adjustments to the preliminary estimates of fair value assigned at the acquisition date. | ||||
Acquisition Date Fair Value | |||||
Customer relationships | $ | 1,840 | |||
Trade name | 130 | ||||
Goodwill | 2,135 | ||||
Total purchase price | $ | 4,105 | |||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||
Schedule of Finite-Lived Intangible Assets | The following table presents our intangible assets as of March 31, 2015: | ||||||||||||||
Gross Intangibles | Accumulated Amortization | Net Intangibles | Weighted Average Amortization Period (years) | ||||||||||||
Developed technology | $ | 390 | $ | 97 | $ | 293 | 3.5 | ||||||||
Customer base | 2,310 | 258 | 2,052 | 4.25 | |||||||||||
Trade name | 200 | 33 | 167 | 3.41 | |||||||||||
Noncompete agreement | 10 | 10 | — | ||||||||||||
$ | 2,910 | $ | 398 | $ | 2,512 | 4.11 | |||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Expected future amortization of intangible assets as of March 31, 2015 is as follows: | ||||||||||||||
Year Ending December 31, | Amount | ||||||||||||||
Remainder of 2015 | $ | 290 | |||||||||||||
2016 | 354 | ||||||||||||||
2017 | 343 | ||||||||||||||
2018 | 343 | ||||||||||||||
2019 | 334 | ||||||||||||||
Thereafter | 848 | ||||||||||||||
RESTRUCTURING_CHARGES_Tables
RESTRUCTURING CHARGES (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||
Schedule of Restructuring and Related Costs | The table below summarizes the balance of accrued restructuring costs, which is included in other current liabilities in our consolidated balance sheets, and the changes during the three months ended March 31, 2015: | ||||||||||||||||
Jonesboro | Costa Rica | Corporate | Total | ||||||||||||||
Balance as of December 31, 2014 | $ | 64 | $ | 9 | $ | 32 | $ | 105 | |||||||||
Expense (reversal) | (14 | ) | — | 4 | (10 | ) | |||||||||||
Payments | (25 | ) | (9 | ) | (7 | ) | (41 | ) | |||||||||
Balance as of March 31, 2015 | $ | 25 | $ | — | $ | 29 | $ | 54 | |||||||||
PRINCIPAL_CLIENTS_Tables
PRINCIPAL CLIENTS (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||
Schedule of Revenue by Major Customers | The following table represents revenue concentration of our principal clients: | ||||||||||||||
Three Months Ended March 31, | |||||||||||||||
2015 | 2014 | ||||||||||||||
Revenue | Percentage | Revenue | Percentage | ||||||||||||
T-Mobile USA, Inc., a subsidiary of Deutsche Telekom (2) | $ | 18,089 | 28.4 | % | $ | 18,639 | 29.5 | % | |||||||
AT&T Services, Inc. and AT&T Mobility, LLC, subsidiaries of AT&T, Inc. (1) | $ | 10,740 | 16.9 | % | $ | 15,344 | 24.3 | % | |||||||
Comcast Cable Communications Management, LLC, subsidiary of Comcast Corporation (2) | $ | 8,878 | 13.9 | % | $ | 10,959 | 17.3 | % | |||||||
(1) Revenue from this customer is generated through our Domestic and Asia Pacific segments. | |||||||||||||||
(2) Revenue from this customer is generated through our Domestic and Asia Pacific segments in 2014 and 2015 and through our Latin America segment in 2014. |
DERIVATIVE_INSTRUMENTS_Tables
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table shows the notional amount of our foreign exchange cash flow hedging instruments as of March 31, 2015: | ||||||
Local Currency Notional Amount | U.S. Dollar Notional Amount | ||||||
Canadian Dollar | 10,600 | $ | 9,102 | ||||
Philippine Peso | 1,590,830 | 35,734 | |||||
$ | 44,836 | ||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 March 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 17 | $ | — | $ | 17 | ||||||||
Total fair value of assets measured on a recurring basis | $ | — | $ | 17 | $ | — | $ | 17 | ||||||||
Liabilities: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 1,210 | $ | — | $ | 1,210 | ||||||||
Total fair value of liabilities measured on a recurring basis | $ | — | $ | 1,210 | $ | — | $ | 1,210 | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||||||||||
on a Recurring Basis as of December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 48 | $ | — | $ | 48 | ||||||||
Total fair value of assets measured on a recurring basis | $ | — | $ | 48 | $ | — | $ | 48 | ||||||||
Liabilities: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 1,250 | $ | — | $ | 1,250 | ||||||||
Total fair value of liabilities measured on a recurring basis | $ | — | $ | 1,250 | $ | — | $ | 1,250 | ||||||||
Liabilities Measured at Fair Value on a | ||||||||||||||||
Non-Recurring Basis as of March 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Accrued restructuring costs | $ | — | $ | — | $ | 54 | $ | 54 | ||||||||
Total fair value of liabilities measured on a non-recurring basis | $ | — | $ | — | $ | 54 | $ | 54 | ||||||||
Liabilities Measured at Fair Value on a | ||||||||||||||||
Non-Recurring Basis as of December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Accrued restructuring costs | $ | — | $ | — | $ | 105 | $ | 105 | ||||||||
Total fair value of liabilities measured on a non-recurring basis | $ | — | $ | — | $ | 105 | $ | 105 | ||||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||
Schedule of Comprehensive Income (Loss) | Accumulated other comprehensive loss consisted of the following items: | |||||||||||
Foreign Currency Translation Adjustment | Derivatives Accounted for as Cash Flow Hedges | Total | ||||||||||
Balance at December 31, 2014 | $ | 1,486 | $ | (2,311 | ) | $ | (825 | ) | ||||
Foreign currency translation | (67 | ) | — | (67 | ) | |||||||
Reclassification to operations | — | 622 | 622 | |||||||||
Unrealized gains (losses) | — | (614 | ) | (614 | ) | |||||||
Balance at March 31, 2015 | $ | 1,419 | $ | (2,303 | ) | $ | (884 | ) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2015 and 2014 were as follows: | |||||||||||
Details about Accumulated Other Comprehensive Loss Components | Amount Reclassified from Accumulated Other Comprehensive Loss | Affected Line Item in the Consolidated Statements of Operations and Comprehensive Loss | ||||||||||
Three Months Ended March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Losses on cash flow hedges | ||||||||||||
Foreign exchange contracts | $ | 576 | $ | 1,222 | Cost of services | |||||||
Foreign exchange contracts | 46 | 93 | Selling, general and administrative expenses | |||||||||
Total reclassifications for the period | $ | 622 | $ | 1,315 | ||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 months ended March 31, 2015 and 2014 is as follows: | |||||||
For the Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Revenue: | ||||||||
Domestic | $ | 35,624 | $ | 33,307 | ||||
Asia Pacific | 20,331 | 21,052 | ||||||
Latin America | 7,698 | 8,850 | ||||||
Total | $ | 63,653 | $ | 63,209 | ||||
Gross profit: | ||||||||
Domestic | $ | 2,407 | $ | 4,543 | ||||
Asia Pacific | 2,522 | 3,604 | ||||||
Latin America | 1,188 | 71 | ||||||
Total | $ | 6,117 | $ | 8,218 | ||||
ACQUISITION_Details
ACQUISITION (Details) (USD $) | 0 Months Ended | 3 Months Ended |
In Thousands, unless otherwise specified | Oct. 01, 2014 | Mar. 31, 2015 |
Collections Center, Inc. | ||
Business Acquisition [Line Items] | ||
Business acquisition, purchase price | $4,105 | |
Payments to acquire business | 2,610 | |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Intangible assets, useful life | 8 years | |
Customer relationships | Collections Center, Inc. | ||
Business Acquisition [Line Items] | ||
Identifiable intangible assets acquired, finite-lived | 1,840 | |
Trade name | ||
Business Acquisition [Line Items] | ||
Intangible assets, useful life | 7 years | |
Trade name | Collections Center, Inc. | ||
Business Acquisition [Line Items] | ||
Identifiable intangible assets acquired, finite-lived | 130 | |
Goodwill | ||
Business Acquisition [Line Items] | ||
Goodwill | 2,135 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $4,136 | $4,136 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | 2,910 | |
Accumulated Amortization | 398 | |
Net Intangibles | 2,512 | 2,609 |
Weighted Average Amortization Period (years) | 4 years 1 month 10 days | |
Remainder of 2015 | 290 | |
2016 | 354 | |
2017 | 343 | |
2018 | 343 | |
2019 | 334 | |
Thereafter | 848 | |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | 390 | |
Accumulated Amortization | 97 | |
Net Intangibles | 293 | |
Weighted Average Amortization Period (years) | 3 years 6 months | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | 2,310 | |
Accumulated Amortization | 258 | |
Net Intangibles | 2,052 | |
Weighted Average Amortization Period (years) | 4 years 3 months | |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | 200 | |
Accumulated Amortization | 33 | |
Net Intangibles | 167 | |
Weighted Average Amortization Period (years) | 3 years 4 months 28 days | |
Noncompete agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | 10 | |
Accumulated Amortization | 10 | |
Net Intangibles | $0 |
RESTRUCTURING_CHARGES_Textuals
RESTRUCTURING CHARGES (Textuals) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 |
Restructuring Cost and Reserve [Line Items] | |||||
Expense | ($10) | ||||
Domestic | Jonesboro | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expense | -14 | ||||
Gain on early termination of lease | 256 | ||||
Domestic | Jonesboro | Employee-Related Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expense | 192 | ||||
Domestic | Jonesboro | Facility Closing Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expense | 609 | ||||
Domestic | Corporate | Employee-Related Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expense | 4 | 279 | |||
Domestic | Corporate | Other Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expense | 2,388 | ||||
Restructuring, expected cost | 200 | ||||
Latin America | Costa Rica | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expense | 0 | ||||
Latin America | Costa Rica | Employee-Related Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expense | 1,004 | ||||
Latin America | Costa Rica | Facility Closing Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expense | $338 |
RESTRUCTURING_CHARGES_Summary_
RESTRUCTURING CHARGES (Summary of Activity, Restructuring Plans) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 |
Restructuring Reserve [Roll Forward] | |||||
Balance as of December 31, 2014 | $105 | ||||
Expense | -10 | ||||
Payments, net of receipts for sublease | -41 | ||||
Balance as of March 31, 2015 | 54 | ||||
Domestic | Jonesboro | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance as of December 31, 2014 | 64 | ||||
Expense | -14 | ||||
Payments, net of receipts for sublease | -25 | ||||
Balance as of March 31, 2015 | 25 | ||||
Domestic | Facility Closing Costs | Jonesboro | |||||
Restructuring Reserve [Roll Forward] | |||||
Expense | 609 | ||||
Domestic | Employee-Related Costs | Jonesboro | |||||
Restructuring Reserve [Roll Forward] | |||||
Expense | 192 | ||||
Domestic | Employee-Related Costs | Corporate | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance as of December 31, 2014 | 32 | ||||
Expense | 4 | 279 | |||
Payments, net of receipts for sublease | -7 | ||||
Balance as of March 31, 2015 | 29 | 32 | |||
Latin America | Costa Rica | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance as of December 31, 2014 | 9 | ||||
Expense | 0 | ||||
Payments, net of receipts for sublease | -9 | ||||
Balance as of March 31, 2015 | 0 | ||||
Latin America | Facility Closing Costs | Costa Rica | |||||
Restructuring Reserve [Roll Forward] | |||||
Expense | 338 | ||||
Latin America | Employee-Related Costs | Costa Rica | |||||
Restructuring Reserve [Roll Forward] | |||||
Expense | $1,004 |
NET_LOSS_PER_SHARE_Details
NET LOSS PER SHARE (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 2,493,720 | 2,359,409 |
PRINCIPAL_CLIENTS_Details
PRINCIPAL CLIENTS (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Jul. 28, 2011 | Mar. 31, 2015 | Mar. 31, 2014 | Jan. 04, 2014 | ||
T-Mobile USA, Inc., a subsidiary of Deutsche Telekom | ||||||
Revenue, Major Customers [Line Items] | ||||||
Revenue | $18,089 | $18,639 | ||||
Revenue concentration, percentage | 28.40% | 29.50% | ||||
Initial term of the master service agreement | 5 years | |||||
Master services agreement, renewal term | 1 year | |||||
Notice of termination option of the initial term | 90 days | |||||
AT&T Services, Inc. and AT&T Mobility, LLC, subsidiaries of AT&T Inc. | ||||||
Revenue, Major Customers [Line Items] | ||||||
Revenue | 10,740 | [1] | 15,344 | [1] | ||
Revenue concentration, percentage | 16.90% | [1] | 24.30% | [1] | ||
Comcast Cable Communications Management LLC, subsidiary of Comcast Corporation | ||||||
Revenue, Major Customers [Line Items] | ||||||
Revenue | $8,878 | [2] | $10,959 | [2] | ||
Revenue concentration, percentage | 13.90% | [2] | 17.30% | [2] | ||
Initial term of the master service agreement | 1 year | |||||
Master services agreement, renewal term | 1 year | |||||
Notice of termination option of the initial term | 90 days | |||||
[1] | Revenue from this customer is generated through our Domestic and Asia Pacific segments. | |||||
[2] | Revenue from this customer is generated through our Domestic and Asia Pacific segments in 2014 and 2015 and through our Latin America segment in 2014. |
DERIVATIVE_INSTRUMENTS_Textual
DERIVATIVE INSTRUMENTS (Textual) (Details) (Foreign exchange contracts) | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 |
In Thousands, unless otherwise specified | USD ($) | Minimum [Member] | Maximum [Member] | Canadian Dollar | Canadian Dollar | Philippine Peso | Philippine Peso |
USD ($) | CAD | USD ($) | PHP | ||||
Derivative [Line Items] | |||||||
Derivatives, contract period | 3 months | 12 months | |||||
Derivatives, notional amount | $44,836 | $9,102 | 10,600 | $35,734 | 1,590,830 |
FAIR_VALUE_MEASUREMENTS_Recurr
FAIR VALUE MEASUREMENTS (Recurring and Nonrecurring) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Recurring | ||
Assets and Liabilities at Fair Value Measured on Recurring Basis | ||
Assets, Foreign exchange contracts | $17 | $48 |
Total fair value of assets measured on a recurring basis | 17 | 48 |
Nonrecurring | ||
Assets and Liabilities at Fair Value on a Nonrecurring Basis | ||
Accrued restructuring costs | 54 | 105 |
Total fair value of liabilities measured on a non-recurring basis | 54 | 105 |
Level 2 | Recurring | ||
Assets and Liabilities at Fair Value Measured on Recurring Basis | ||
Assets, Foreign exchange contracts | 17 | 48 |
Total fair value of assets measured on a recurring basis | 17 | 48 |
Level 3 | Nonrecurring | ||
Assets and Liabilities at Fair Value on a Nonrecurring Basis | ||
Accrued restructuring costs | 54 | 105 |
Total fair value of liabilities measured on a non-recurring basis | 54 | 105 |
Foreign exchange contracts | Recurring | ||
Assets and Liabilities at Fair Value Measured on Recurring Basis | ||
Liabilities, Foreign exchange contracts | 1,210 | 1,250 |
Total fair value of liabilities measured on a recurring basis | 1,210 | 1,250 |
Foreign exchange contracts | Level 2 | Recurring | ||
Assets and Liabilities at Fair Value Measured on Recurring Basis | ||
Liabilities, Foreign exchange contracts | 1,210 | 1,250 |
Total fair value of liabilities measured on a recurring basis | $1,210 | $1,250 |
DEBT_Details
DEBT (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||
Line of credit | $9,286,000 | $4,640,000 |
Long-term Debt, Current and Noncurrent [Abstract] | ||
Long-term debt | 1,000,000 | |
Long-term debt, current portion | 380,000 | 373,000 |
Long-term debt, net of current portion | 408,000 | 506,000 |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 20,000,000 | |
Line of credit | 9,286,000 | |
Remaining borrowing capacity | 10,654,000 | |
Amount outstanding for undrawn letters of credit issued under revolving credit facility | $60,000 |
DEBT_Capital_Leases_Details
DEBT Capital Leases (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Long-term obligations under capital leases | $7,826 | $4,264 |
Current obligations under capital leases | $1,837 | $810 |
SHAREBASED_COMPENSATION_Textua
SHARE-BASED COMPENSATION (Textuals (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Stock Awards Activity [Line Items] | ||
Total compensation cost | $496 | $402 |
Stock Options | ||
Stock Awards Activity [Line Items] | ||
Total unrecognized compensation cost | $1,942 | |
Weighted-average period that cost is expected to be recognized | 2 years |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Accumulated Other Comprehensive Loss [Roll Forward] | |
Foreign Currency Translation Adjustment - Beginning balance | $1,486 |
Derivatives Accounted for as Cash Flow Hedges - Beginning balance | -2,311 |
Total - Beginning balance | -825 |
Foreign currency translation | -67 |
Reclassification to operations, derivatives | 622 |
Unrealized gains (losses) | -614 |
Foreign Currency Translation Adjustment - Ending balance | 1,419 |
Derivatives Accounted for as Cash Flow Hedges - Ending balance | -2,303 |
Total - Ending balance | ($884) |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE LOSS Reclassification (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of services | $57,536 | $54,991 |
Selling, general and administrative expenses | 8,061 | 8,249 |
Reclassification to operations | 622 | 1,315 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Foreign exchange contracts | Amount Reclassified from Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of services | 576 | 1,222 |
Selling, general and administrative expenses | $46 | $93 |
SEGMENT_INFORMATION_Textual_De
SEGMENT INFORMATION (Textual) (Details) | 3 Months Ended |
Mar. 31, 2015 | |
segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 3 |
U.S. | |
Segment Reporting Information [Line Items] | |
Number of operating facilities | 9 |
Canada | |
Segment Reporting Information [Line Items] | |
Number of operating facilities | 1 |
Philippines | |
Segment Reporting Information [Line Items] | |
Number of operating facilities | 4 |
Honduras | |
Segment Reporting Information [Line Items] | |
Number of operating facilities | 2 |
SEGMENT_INFORMATION_Segment_Re
SEGMENT INFORMATION (Segment Reporting) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Revenue | $63,653 | $63,209 |
Gross profit | 6,117 | 8,218 |
Reportable Geographical Components [Member] | Domestic | ||
Segment Reporting Information [Line Items] | ||
Revenue | 35,624 | 33,307 |
Gross profit | 2,407 | 4,543 |
Reportable Geographical Components [Member] | Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Revenue | 20,331 | 21,052 |
Gross profit | 2,522 | 3,604 |
Reportable Geographical Components [Member] | Latin America | ||
Segment Reporting Information [Line Items] | ||
Revenue | 7,698 | 8,850 |
Gross profit | $1,188 | $71 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 0 Months Ended | ||
11-May-15 | Mar. 31, 2015 | Apr. 29, 2015 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Merger agreement, purchase price | $16,000,000 | ||
Revolving Credit Facility | |||
Subsequent Event [Line Items] | |||
Maximum borrowing capacity | 20,000,000 | ||
Revolving Credit Facility | Wells Fargo Bank | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Maximum borrowing capacity | 20,000,000 | ||
Revolving Credit Facility | BMO Harris Bank | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Borrowing capacity | 50,000,000 | ||
Maximum borrowing capacity | 70,000,000 | ||
Increments for additional borrowing | $5,000,000 |