Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001031029 | |
Entity Registrant Name | StarTek, Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-12793 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-1370538 | |
Entity Address, Address Line One | 6200 South Syracuse Way, Suite 485 | |
Entity Address, City or Town | Greenwood Village | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80111 | |
City Area Code | 303 | |
Local Phone Number | 262-4500 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | SRT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,799,339 |
Consolidated Statement of Incom
Consolidated Statement of Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | $ 189,436 | $ 142,652 | $ 352,931 | $ 303,829 |
Warrant contra revenue | (405) | (485) | (830) | (763) |
Net Revenue | 189,031 | 142,167 | 352,101 | 303,066 |
Cost of services | (164,477) | (126,354) | (302,860) | (267,195) |
Gross profit | 24,554 | 15,813 | 49,241 | 35,871 |
Selling, general and administrative expenses | (12,298) | (14,644) | (26,469) | (31,899) |
Impairment losses and restructuring/exit cost | 19 | (235) | (1,879) | (24,557) |
Operating income/ (loss) | 12,275 | 934 | 20,893 | (20,585) |
Share of income/ (loss) of equity-accounted investees | 59 | (12) | 45 | (20) |
Interest expense, net | (2,484) | (3,190) | (16,253) | (6,696) |
Exchange gain / (loss), net | 363 | (1,637) | 575 | 291 |
Income/ (loss) before income taxes | 10,213 | (3,905) | 5,260 | (27,010) |
Income tax expense | (2,093) | (1,283) | (6,995) | (4,159) |
Net income/ (loss) | 8,120 | (5,188) | (1,735) | (31,169) |
Net income/ (Loss) | ||||
Net income attributable to non-controlling interests | 1,235 | 29 | 3,535 | 605 |
Net income/ ( loss) attributable to Startek shareholders | $ 6,885 | $ (5,217) | $ (5,270) | $ (31,774) |
Net income/ (loss) per common share - basic (in dollars per share) | $ 0.17 | $ (0.14) | $ (0.13) | $ (0.82) |
Net income/ (loss) per common share - diluted (in dollars per share) | $ 0.17 | $ (0.14) | $ (0.13) | $ (0.82) |
Weighted average common shares outstanding - basic (in shares) | 40,786 | 38,614 | 40,689 | 38,571 |
Weighted average common shares outstanding - diluted (in shares) | 41,222 | 38,614 | 40,689 | 38,571 |
Consolidated Statement of Other
Consolidated Statement of Other Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net loss | $ 8,120 | $ (5,188) | $ (1,735) | $ (31,169) |
Net income attributable to non-controlling interests | 1,235 | 29 | 3,535 | 605 |
Net income/ ( loss) attributable to Startek shareholders | 6,885 | (5,217) | (5,270) | (31,774) |
Other comprehensive (loss) / income, net of taxes: | ||||
Foreign currency translation adjustments | (876) | 727 | (1,968) | (3,665) |
Change in fair value of derivative instruments | 0 | (8) | 8 | (680) |
Pension amortization | (37) | (3,026) | (421) | (2,630) |
Other comprehensive loss | (913) | (2,307) | (2,381) | (6,975) |
Other comprehensive loss attributable to non-controlling interests | 0 | (1,787) | (69) | (1,624) |
Other comprehensive loss attributable to Startek shareholders | (913) | (520) | (2,312) | (5,351) |
Other Comprehensive Income (Loss), Net of Tax, Total | (913) | (2,307) | (2,381) | (6,975) |
Comprehensive (loss) / income | ||||
Comprehensive income/ (loss) attributable to non-controlling interests | 1,235 | (1,758) | 3,466 | (1,019) |
Comprehensive income/ (loss) attributable to Startek shareholders | 5,972 | (5,737) | (7,582) | (37,125) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total | $ 7,207 | $ (7,495) | $ (4,116) | $ (38,144) |
Consolidated Balance Sheet (Una
Consolidated Balance Sheet (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 47,018 | $ 44,507 |
Restricted cash | 7,045 | 6,052 |
Trade accounts receivables, net | 93,735 | 83,560 |
Unbilled revenue | 51,685 | 49,779 |
Prepaid and other current assets | 15,148 | 14,542 |
Total current assets | 214,631 | 198,440 |
Non-current assets | ||
Property, plant and equipment, net | 34,692 | 34,225 |
Operating lease right-of-use assets | 59,906 | 69,376 |
Intangible assets, net | 95,297 | 100,440 |
Goodwill | 183,397 | 183,397 |
Carrying amount of investment in equity-accounted investees | 25,052 | 111 |
Deferred tax assets, net | 3,154 | 5,294 |
Prepaid expenses and other non-current assets | 14,816 | 13,370 |
Total non-current assets | 416,314 | 406,213 |
Total assets | 630,945 | 604,653 |
Current liabilities | ||
Trade accounts payables | 9,885 | 20,074 |
Accrued expenses | 58,203 | 57,118 |
Short term debt | 6,983 | 15,505 |
Current maturity of long term debt | 2,294 | 2,180 |
Current maturity of operating lease obligation | 17,623 | 19,327 |
Other current liabilities | 46,813 | 39,987 |
Total current liabilities | 141,801 | 154,191 |
Non-current liabilities | ||
Long term debt | 164,623 | 118,315 |
Operating lease liabilities | 44,326 | 52,052 |
Other non-current liabilities | 17,754 | 15,498 |
Deferred tax liabilities, net | 16,971 | 17,715 |
Total non-current liabilities | 243,674 | 203,580 |
Total liabilities | 385,475 | 357,771 |
Stockholders’ equity: | ||
Common stock, 60,000,000 non-convertible shares, $0.01 par value, authorized; 40,796,179 and 40,453,462 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 408 | 405 |
Additional paid-in capital | 291,401 | 288,700 |
Accumulated deficit | (90,813) | (85,543) |
Accumulated other comprehensive loss | (9,598) | (7,286) |
Equity attributable to Startek shareholders | 191,398 | 196,276 |
Non-controlling interests | 54,072 | 50,606 |
Total stockholders’ equity | 245,470 | 246,882 |
Total liabilities and stockholders’ equity | $ 630,945 | $ 604,653 |
Consolidated Balance Sheet (U_2
Consolidated Balance Sheet (Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares issued (in shares) | 40,796,179 | 40,453,462 |
Common stock, shares outstanding (in shares) | 40,796,179 | 40,453,462 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Operating Activities | |||||
Net loss | $ 8,120 | $ (5,188) | $ (1,735) | $ (31,169) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||
Depreciation and amortization | 13,470 | 14,328 | |||
Impairment of goodwill | 0 | 22,708 | $ 35,944 | ||
Profit on sale of property, plant and equipment | (73) | 0 | |||
Provision for doubtful accounts | 32 | 889 | |||
Amortisation of debt issuance cost | 2,827 | 761 | |||
Amortisation of call option premium | 480 | 0 | |||
Warrant contra revenue | 405 | 485 | 830 | 763 | |
Share-based compensation expense | 591 | 209 | |||
Deferred income taxes | (1,255) | 1,604 | |||
Share of (income)/ loss of equity-accounted investees | (59) | 12 | (45) | 20 | |
Changes in operating assets and liabilities: | |||||
Trade accounts receivables | (11,412) | 34,022 | |||
Prepaid expenses and other assets | (2,971) | (2,301) | |||
Trade accounts payables | (9,965) | (5,920) | |||
Income taxes, net | 2,724 | (2,314) | |||
Accrued expenses and other current liabilities | 9,505 | 15,558 | |||
Net cash generated from operating activities | 3,003 | 49,158 | |||
Investing Activities | |||||
Purchase of property, plant and equipment | (7,513) | (7,864) | |||
Investment in equity-accounted investees | (25,000) | 0 | |||
Payments for call option premium | (3,000) | 0 | |||
Proceeds from equity-accounted investees | 104 | 395 | |||
Net cash used in investing activities | (35,409) | (7,469) | |||
Financing Activities | |||||
Proceeds from the issuance of common stock | 1,283 | 8,009 | |||
Proceeds from long term debt | 165,000 | 0 | |||
Payments on long term debt | (117,600) | (4,200) | |||
Payments for loan fees related to long term debt | (2,794) | 0 | |||
Proceeds from (payments on) other debt, net | (9,431) | (21,210) | |||
Net cash generated from/ (used in) financing activities | 36,458 | (17,401) | |||
Net increase in cash and cash equivalents | 4,052 | 24,288 | |||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (548) | (497) | |||
Cash and cash equivalents and restricted cash at beginning of the period | 50,559 | 32,626 | 32,626 | ||
Cash and cash equivalents and restricted cash at end of the period | 54,063 | 56,417 | 54,063 | 56,417 | 50,559 |
Components of cash and cash equivalents and restricted cash | |||||
Balance with banks | 47,018 | 47,451 | 47,018 | 47,451 | $ 44,507 |
Restricted cash | 7,045 | 8,966 | 7,045 | 8,966 | |
Total cash and cash equivalents and restricted cash | $ 54,063 | $ 56,417 | 54,063 | 56,417 | |
Supplemental disclosure of Cash Flow Information | |||||
Cash paid for interest and other finance costs | 17,091 | 6,440 | |||
Cash paid for income taxes | 5,541 | 4,017 | |||
Non-cash warrant contra revenue | 830 | 763 | |||
Non-cash share-based compensation expenses | $ 591 | $ 209 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 2019 | 38,525,636 | |||||||||||||||||
Balance at Dec. 31, 2019 | $ 0 | $ 413 | $ (413) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 385 | $ 276,827 | $ (46,145) | $ (4,568) | $ 475 | $ (1,929) | $ 225,045 | $ 46,739 | $ 271,784 |
Issuance of common stock (in shares) | 1,684,663 | |||||||||||||||||
Issuance of common stock | $ 16 | 7,993 | 0 | 0 | 0 | 0 | 8,009 | 0 | 8,009 | |||||||||
Warrant expenses | 0 | 763 | 0 | 0 | 0 | 0 | 763 | 0 | 763 | |||||||||
Net income (loss) | 0 | 0 | (31,774) | 0 | 0 | 0 | (31,774) | 605 | (31,169) | |||||||||
Other comprehensive loss for the period | 0 | 0 | 0 | (3,665) | (680) | (1,006) | (5,351) | (1,624) | (6,975) | |||||||||
Share-based compensation expenses | $ 0 | 209 | 0 | 0 | 0 | 0 | 209 | 0 | 209 | |||||||||
Balance (in shares) at Jun. 30, 2020 | 40,210,299 | |||||||||||||||||
Balance at Jun. 30, 2020 | $ 401 | 286,205 | (78,332) | (8,233) | (205) | (2,935) | 196,901 | 45,720 | 242,621 | |||||||||
Balance (in shares) at Dec. 31, 2019 | 38,525,636 | |||||||||||||||||
Balance at Dec. 31, 2019 | $ 0 | $ 413 | $ (413) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 385 | 276,827 | (46,145) | (4,568) | 475 | (1,929) | 225,045 | 46,739 | $ 271,784 |
Balance (in shares) at Dec. 31, 2020 | 40,453,462 | 40,453,462 | ||||||||||||||||
Balance at Dec. 31, 2020 | $ 405 | 288,700 | (85,543) | (4,529) | (8) | (2,749) | 196,276 | 50,606 | $ 246,882 | |||||||||
Balance (in shares) at Mar. 31, 2020 | 38,541,724 | |||||||||||||||||
Balance at Mar. 31, 2020 | $ 385 | 277,852 | (73,115) | (8,960) | (197) | (1,696) | 194,269 | 47,478 | 241,747 | |||||||||
Issuance of common stock (in shares) | 1,668,575 | |||||||||||||||||
Issuance of common stock | $ 16 | 7,950 | 0 | 0 | 0 | 0 | 7,966 | 0 | 7,966 | |||||||||
Share-based compensation expenses | 0 | (82) | 0 | 0 | 0 | 0 | (82) | 0 | (82) | |||||||||
Warrant expenses | 0 | 485 | 0 | 0 | 0 | 0 | 485 | 0 | 485 | |||||||||
Net income (loss) | 0 | 0 | (5,217) | 0 | 0 | 0 | (5,217) | 29 | (5,188) | |||||||||
Other comprehensive loss for the period | $ 0 | 0 | 0 | 727 | (8) | (1,239) | (520) | (1,787) | (2,307) | |||||||||
Balance (in shares) at Jun. 30, 2020 | 40,210,299 | |||||||||||||||||
Balance at Jun. 30, 2020 | $ 401 | 286,205 | (78,332) | (8,233) | (205) | (2,935) | 196,901 | 45,720 | $ 242,621 | |||||||||
Balance (in shares) at Dec. 31, 2020 | 40,453,462 | 40,453,462 | ||||||||||||||||
Balance at Dec. 31, 2020 | $ 405 | 288,700 | (85,543) | (4,529) | (8) | (2,749) | 196,276 | 50,606 | $ 246,882 | |||||||||
Issuance of common stock (in shares) | 342,717 | |||||||||||||||||
Issuance of common stock | $ 3 | 1,280 | 0 | 0 | 0 | 0 | 1,283 | 0 | 1,283 | |||||||||
Warrant expenses | 0 | 830 | 0 | 0 | 0 | 0 | 830 | 0 | 830 | |||||||||
Net income (loss) | 0 | 0 | (5,270) | 0 | 0 | 0 | (5,270) | 3,535 | (1,735) | |||||||||
Other comprehensive loss for the period | 0 | 0 | 0 | (1,968) | 8 | (352) | (2,312) | (69) | (2,381) | |||||||||
Share-based compensation expenses | $ 0 | 591 | 0 | 0 | 0 | 0 | 591 | 0 | $ 591 | |||||||||
Balance (in shares) at Jun. 30, 2021 | 40,796,179 | 40,796,179 | ||||||||||||||||
Balance at Jun. 30, 2021 | $ 408 | 291,401 | (90,813) | (6,497) | 0 | (3,101) | 191,398 | 54,072 | $ 245,470 | |||||||||
Balance (in shares) at Mar. 31, 2021 | 40,781,804 | |||||||||||||||||
Balance at Mar. 31, 2021 | $ 408 | 290,646 | (97,698) | (5,621) | 0 | (3,064) | 184,671 | 52,837 | 237,508 | |||||||||
Issuance of common stock (in shares) | 14,375 | |||||||||||||||||
Issuance of common stock | $ 0 | 39 | 0 | 0 | 0 | 0 | 39 | 0 | 39 | |||||||||
Share-based compensation expenses | 0 | 311 | 0 | 0 | 0 | 0 | 311 | 0 | 311 | |||||||||
Warrant expenses | 0 | 405 | 0 | 0 | 0 | 0 | 405 | 0 | 405 | |||||||||
Net income (loss) | 0 | 0 | 6,885 | 0 | 0 | 0 | 6,885 | 1,235 | 8,120 | |||||||||
Other comprehensive loss for the period | $ 0 | 0 | 0 | (876) | 0 | (37) | (913) | 0 | $ (913) | |||||||||
Balance (in shares) at Jun. 30, 2021 | 40,796,179 | 40,796,179 | ||||||||||||||||
Balance at Jun. 30, 2021 | $ 408 | $ 291,401 | $ (90,813) | $ (6,497) | $ 0 | $ (3,101) | $ 191,398 | $ 54,072 | $ 245,470 |
Note 1 - Overview and Basis of
Note 1 - Overview and Basis of Preparation | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Unless otherwise noted in this report, any description of "us," "we," or "our," refers to StarTek, Inc. and its subsidiaries (the "Company"). Financial information in this report is presented in U.S. dollars. Business Startek is a leading global provider of technology-enabled business process management solutions. The Company provides omni-channel customer experience, digital transformation, and technology services to some of the finest brands globally. Startek is committed to impacting clients’ business outcomes by focusing on enhancing customer experience and digital enablement across all touchpoints and channels. Startek has more than 45,000 46 13 200 The Company offers a repository of digital and omnichannel solutions based on decades of experience in driving growth by putting the customer at the center of our business. Because no one Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US-GAAP") for interim financial information and instructions to Form 10 10 X. not These consolidated financial statements reflect all adjustments (consisting only of normal recurring entries, except as noted) which, in the opinion of management, are necessary for fair presentation. The results of operations for interim periods are not The consolidated financial statements reflect the financial results of all subsidiaries that are more than 50% not 100%, As of December 31, 2020, not 10 10 December 31, 2020 The figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to make them comparable. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. Use of Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles, impairment of goodwill, valuation allowances for deferred tax assets, leases and provision for doubtful debts, and restructuring costs. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable, and management has made assumptions about the possible effects of the novel coronavirus (“COVID- 19” Revenue The Company utilizes a five 606, 4 Leases We determine if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, current maturity of operating lease liabilities, and operating lease liabilities in our consolidated balance sheet. Finance leases are included in property plant and equipment, long-term debt, accrued expenses, and other current liabilities in our consolidated balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the balance lease term. As most of our leases do not may The Company elected the practical expedient permitted under the transition guidance under Topic 842, not 12 not not not We have lease agreements with lease and non-lease components, which are generally accounted for separately. Rent discounts and deferment of rent that were received due to COVID- 19 13 Business Combinations The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, Goodwill and Intangible Assets Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not December 31, not not not 3 3 Foreign Currency Matters The Company has operations in Argentina and its functional currency has historically been the Argentine Peso. The Company monitors inflation rates in countries where it operates as required by US GAAP. Under ASC 830 10 45 12, three 100%. July 1, 2018. 830, not Investment in equity-accounted investees Investment in equity-accounted investee is an entity over which the Company has significant influence and which is neither a subsidiary nor a joint arrangement. Significant influence is the power to participate in the investee's financial and operating policy decisions of the investee but is not Investment in equity-accounted investee is accounted using the equity method of accounting. Under the equity method, the investment in equity-accounted investees is initially recognized at cost and adjusted thereafter for the post-acquisition changes in the Company’s share of net assets of the equity-accounted investees. Goodwill relating to an investment in equity-accounted investees, if any, is included in the carrying amount of the investment and is neither amortized nor individually tested for impairment. The consolidated statement of income reflects the Company’s share of the results of operations of the equity-accounted investees. When there has been a change recognized directly in the equity of the equity-accounted investees, the Company recognizes its share of any changes and discloses this, when applicable, in the statement of stockholders' equity. Unrealized gains and losses resulting from transactions between the Company and the equity-accounted investment are eliminated to the extent of the interest in the equity-accounted investees. The Company’s share of profit/loss of equity-accounted investees is shown on the face of the consolidated statement of income/(loss). The financial statements of the equity-accounted investee are prepared for the same reporting period as the Company. When necessary, adjustments are made to bring the accounting policies in line with those of the Company. After the application of the equity method, the Company determines at each reporting date whether there is any objective evidence that the investment in equity-accounted investees is impaired if there has been other than a temporary decline in carrying value. If this is the case, the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount in the ‘share of profit/(loss) of equity-accounted investees in the consolidated statement of income (loss). Stock-Based Compensation We recognize expenses related to all share-based payments to employees, including grants of employee stock options, based on the grant-date fair values amortized straight-line over the period during which the employees are required to provide services in exchange for the equity instruments. We include an estimate of forfeitures when calculating compensation expenses. We use the Black-Scholes method for valuing stock-based awards. See Note 10, Common Stock Warrant Accounting We account for common stock warrants as equity instruments, based on the specific terms of our warrant agreement. For more information refer to Note 10, Recent Accounting Pronouncements In June 2016, 2016 13, 326 2016 13" December 15, 2022, not 2016 13 In March 2020, No. 2020 04, not not December 31, 2022. |
Note 3 - Goodwill and Intangibl
Note 3 - Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 3. Goodwill The carrying value of goodwill is allocated to reporting units as follows: Reporting Units June 30, 2021 December 31, 2020 Americas 64,315 64,315 India 12,554 12,554 Malaysia 47,543 47,543 Saudi Arabia 54,840 54,840 South Africa - - Argentina - - Australia 4,145 4,145 Total $ 183,397 $ 183,397 We perform a goodwill impairment analysis at least annually (in the fourth five may 19. As of June 30, 2021, no The following table presents the changes in goodwill during the three June 30, 2021 December 31, 2020: June 30, 2021 December 31, 2020 Opening balance 183,397 219,341 Impairment - (35,944 ) Ending balance $ 183,397 $ 183,397 Intangible Assets The following table presents our intangible assets: As of June 30, 2021 Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Customer relationships 66,220 19,072 47,148 6.5 Brand 49,500 13,226 36,274 7.1 Trademarks 13,210 2,596 10,614 7.5 Other intangibles 2,130 869 1,261 4.9 $ 131,060 $ 35,763 $ 95,297 As of December 31, 2020 Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Customer relationships 66,220 16,289 49,931 6.5 Brand 49,500 11,408 38,092 7.1 Trademarks 13,210 2,155 11,055 7.5 Other intangibles 2,130 768 1,362 4.9 $ 131,060 $ 30,620 $ 100,440 As of June 30, 2021, no Expected future amortization of intangible as of June 30, 2021 Years Ending December 31, Amount Remainder of 2021 5,175 2022 10,350 2023 10,306 2024 10,252 2025 10,252 Thereafter 48,962 |
Note 4 - Revenue
Note 4 - Revenue | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 4. The Company follows a five 606, Contracts with Customers All of the Company's revenues are derived from written contracts with our customers. Generally speaking, our contracts document our customers' intent to utilize our services and the relevant terms and conditions under which our services will be provided. Our contracts generally do not may ninety Our contracts give us the right to bill for services rendered during the period, which for most of our customers is a calendar month, with a few customers specifying a fiscal month. Our payment terms vary by client and generally range from due upon receipt to 60 90 Performance Obligations We have identified one Our stand-ready obligation involves outsourcing of the entire customer care life cycle, including: • The identification, operation, management, and maintenance of facilities, IT equipment, and IT and telecommunications infrastructure • Management of the entire human resources function, including recruiting, hiring, training, supervising, evaluating, coaching, retaining, compensating, providing employee benefits programs, and disciplinary activities These activities are all considered an integral part of the production activities required in the service of standing ready to accept calls as and when they are directed to us by our clients. Revenue Recognition Methods Because our customers receive and consume the benefit of our services as they are performed and we have the contractual right to invoice for services performed to date, we have concluded that our performance obligation is satisfied over time. Accordingly, we recognize revenue for our services in the month they are performed. We are generally entitled to invoice for our services on a monthly basis. We invoice according to the hourly and/or per-transaction rates stated in each contract for the various activities we perform. Some contracts include opportunities to earn bonuses or include parameters under which we will incur penalties related to performance in any given month. Bonus or penalty amounts are based on the current month’s performance. Formulas are included in the contracts for the calculation of any bonus or penalty. There is no Practical expedients and exemptions Because the Company’s contracts are essentially month-to-month, we have elected the following practical expedients: • ASC 606 10 50 14 one • ASC 340 40 25 4 one • ASC 606 10 32 2A • ASC 606 10 55 18 may Disaggregated Revenue Revenues by our clients' industry verticals for the three six June 30, 2021 2020 Three Months Ended June 30, Six Months Ended June 30, Vertical: 2021 2020 2021 2020 Telecom 53,611 50,186 105,285 105,527 Healthcare & Education 40,018 9,178 57,705 22,617 E-commerce & Consumer 26,221 21,354 52,324 47,802 Media & Cable 23,778 22,099 49,572 45,265 Financial & Business Services 15,763 10,438 31,214 23,833 Travel & Hospitality 10,542 14,179 21,039 29,965 Technology, IT & Related Services 4,858 4,402 9,939 9,497 All other verticals 14,645 10,816 25,853 19,323 Gross revenue 189,436 142,652 352,931 303,829 Less: Warrant contra revenue (405 ) (485 ) (830 ) (763 ) Net revenue $ 189,031 $ 142,167 $ 352,101 $ 303,066 |
Note 5 - Net Gain (Loss) Per Sh
Note 5 - Net Gain (Loss) Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 5. Basic earnings per common share are computed based on our weighted average number of common shares outstanding. Diluted earnings per share are computed based on our weighted average number of common shares outstanding plus the effect of dilutive stock options, non-vested restricted stock, and deferred stock units, using the treasury stock method. When a net loss is reported, potentially issuable common shares are excluded from the computation of diluted earnings per share as their effect would be anti-dilutive. For three six June 30, 2021 2020, Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Shares used in basic earnings per share calculation: 40,786 38,614 40,689 38,571 Effect of dilutive securities: - - - - Stock options 436 - - - Restricted stock/Deferred stock units - - - - Total effects of dilutive securities 436 - - - Shares used in dilutive earnings per share calculation: 41,222 38,614 40,689 38,571 The Company always maintained Startek's 2008 10, Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Anti-dilutive securities: Stock options 62 1,948 2,114 1,948 |
Note 6 - Impairment Losses & Re
Note 6 - Impairment Losses & Restructuring/Exit Cost | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | 6. Impairment Loss As of June 30, 2021, Restructuring / Exit Cost The table below summarizes the balance of accrued restructuring cost, voluntary/involuntary termination costs, and other acquisition-related costs, which are included in other accrued liabilities in our consolidated balance sheet. The changes during the six June 30, 2021 December 31, 2020. Employee related Facilities related Total Balance as of December 31, 2020 - 25 25 Accruals/(reversals) 1,837 42 1,879 Payments (1,756 ) (67 ) (1,823 ) Balance as of June 30, 2021 $ 81 $ - $ 81 Employee related Facilities related Total Balance at December 31, 2019 1,326 514 1,840 Accruals/(reversals) 1,499 356 1,855 Payments (2,825 ) (845 ) (3,670 ) Balance at December 31, 2020 $ - $ 25 $ 25 Employee related In 2021, one one third 2021. |
Note 7 - Derivative Instruments
Note 7 - Derivative Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 7. Cash flow hedges Our locations in Canada and the Philippines primarily serve US-based clients. The revenues from these clients are billed and collected in US Dollars, but the expenses related to these revenues are paid in Canadian Dollars and Philippine Pesos. We enter into derivative contracts, in the form of forward contracts and range forward contracts (a transaction where both a call option is purchased and a put option is sold) to mitigate this foreign currency exchange risk. The contracts cover periods commensurate with expected exposure, generally three twelve The Company had terminated all cash flow hedges contracts early in April 2020 June 30, 2021 nil. Gain (Loss) Recognized in AOCI, net of tax Gain (Loss) Recognized in AOCI, net of tax Gain/ (Loss) Reclassified from AOCI into Income Gain/ (Loss) Reclassified from AOCI into Income Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Cash flow hedges: Foreign exchange contracts $ - $ (434 ) $ 8 $ (246 ) Non-designated hedges We have also entered into foreign currency range forward contracts and interest swap contracts as required by our lenders. These hedges are not 815, Derivatives and Hedging. not Unrealized gains and losses and changes in the fair value of these derivatives are recognized as incurred in Exchange gains (losses), net in the consolidated statement of income (loss). The following table presents these amounts for the three six June 30, 2021 2020: Derivatives not designated under ASC 815 For the Three Months Ended June 30, 2021 For the Three Months Ended June 30, 2020 For the Six months ended June 30, 2021 For the Six Months Ended June 30, 2020 Foreign currency forward contracts $ - $ (1,304 ) $ - $ 468 Interest rate swap $ - $ (83 ) $ - $ (423 ) The Company had terminated all derivative (non-designated hedge) contracts in November 2020 |
Note 8 - Fair Value Measurement
Note 8 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 8. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The levels of the fair value hierarchy are described below: Level 1 Level 2 not Level 3 Derivative Instruments The values of our derivative instruments are derived from pricing models using inputs based upon market information, including contractual terms, market prices, and yield curves. The inputs to the valuation pricing models are observable in the market, and as such the derivatives are classified as Level 2 As of June 30, 2021, no |
Note 9 - Debt
Note 9 - Debt | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 9. The below table presents details of the Company's debt: June 30, 2021 December 31, 2020 Short term debt Working capital facilities 6,983 15,506 Current portion of long term debt Current maturity of long term loan - - Current maturity of equipment loan 1,773 1,664 Current maturity of finance lease obligations 521 516 Total $ 9,277 17,686 Long term debt Term loan, net of debt issuance costs 162,363 $ 114,930 Equipment loan 2,093 2,955 Finance lease obligations 167 430 Total $ 164,623 $ 118,315 Working capital facilities The Company has a number of working capital facilities in various countries in which it operates. These facilities provide for a combined borrowing capacity of approximately $30 million for a number of working capital products. These facilities bear interest at benchmark rate plus margins between 3.0% and 4.5% and are due on demand. These facilities are collateralized by various Company assets and have a total outstanding balance of $7 million as of June 30, 2021. Term loan On February 18, 2021, The term loan facility amortizes 2.5% on the date that is 21, 24 27, 30, 33, 36 39, 42, 45, 48 51 54 57 On February 22, 2021, October 27, 2017. Principal payments due on the term loan are as follows: Years Amount Remainder of 2021 - 2022 4,125 2023 22,688 2024 30,937 2025 57,750 2026 49,500 Total $ 165,000 The Term loan has a floating interest rate of USD LIBOR plus 4.5% annually for the first The Company incurred debt issuance costs of $11.3 million in connection with the new term loan. As per ASC 470, In connection with the new term loan, the unamortized debt issuance costs as of June 30, 2021 Following table presents the changes in debt issuance cost during the six June 30, 2021 December 31, 2020: June 30, 2021 December 31, 2020 Opening balance 2,670 4,125 Add: Debt issuance cost (refinancing of term loan) 11,269 - Less: Expensed out (ASC 470 - extinguishment or modification) (10,937 ) - Less: Amortisation of debt issuance cost (365 ) (1,455 ) Closing balance $ 2,637 $ 2,670 Non-recourse factoring We have entered into factoring agreements with financial institutions to sell certain of our accounts receivable under non-recourse agreements. Under the arrangement, the Company sells the trade receivables on a non-recourse basis and accounts for the transactions as sales of receivables. The applicable receivables are removed from the Company's consolidated balance sheet when the Company receives the cash proceeds. We do not June 30, 2021. BMO Equipment Loan On December 27, 2018, January 2019. June 30, 2021 Equipment Loan On November 02, 2020, first June 30, 2021 Finance lease obligations From time to time and when management believes it to be advantageous, we may |
Note 10 - Share-based Compensat
Note 10 - Share-based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 10. Amazon Warrant On January 23, 2018, May 17, 2019, June 29, 2020, $9.95 third The first January 23, 2026. The second May 31, 2019. The third Feb 29, 2020. 2019 08 January 01, 2020 December 31, 2019, The fourth Dec 31, 2020. As per ASC 606, three six June 30, 2021, The contra-revenue and equity are estimated and recorded, using the Monte Carlo pricing model, when performance completion is probable, with adjustments in each reporting period until performance is complete in conformance with ASC 606 718 The Warrant provides for net share settlement that will reduce the number of shares issued upon exercise to reflect the net settlement of the exercise price if elected by the holders. The Warrant provides for certain adjustments that may Share-based compensation Our share-based compensation arrangements include grants of stock options, restricted stock units, and deferred stock units under the StarTek, Inc. 2008 three six June 30, 2021 June 30, 2021, |
Note 11 - Accumulated Other Com
Note 11 - Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 11. Accumulated other comprehensive loss consists of the following items: Foreign Currency Translation Adjustment Derivatives Accounted for as Cash Flow Hedges Defined Benefit Plan Equity attributable to Startek shareholders Non-controlling interests Total Balance at December 31, 2020 (4,529 ) (8 ) (2,749 ) (7,286 ) (3,071 ) (10,357 ) Foreign currency translation (1,968 ) - - (1,968 ) - (1,968 ) Reclassification to operations - 8 - 8 - 8 Unrealized losses - - - - - - Pension remeasurement - - (352 ) (352 ) (69 ) (421 ) Balance at June 30, 2021 $ (6,497 ) $ - $ (3,101 ) $ (9,598 ) $ (3,140 ) $ (12,738 ) |
Note 12 - Segment Reporting
Note 12 - Segment Reporting | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 12. The Company provides business process outsourcing services (“BPO”) to clients in various industries and geographical locations. Our approach is focused on providing our clients with the best possible combination of services and delivery locations to meet our clients' needs in the best and most efficient manner. Our Global Chief Executive Officer (CEO), who has been identified as the Chief Operating Decision Maker ("CODM"), reviews financial information mainly on a geographical basis. Our operating business model is focused on the geographies in which we operate. Our CODM reviews the performance and makes resource allocation geography-wise, hence the geographical level represents the operating segments of Startek Inc. We report our results of operations in Six reportable segments, as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Revenue: Americas 84,680 58,479 148,605 126,647 India & Sri Lanka 24,079 16,698 45,561 40,950 Malaysia 13,816 12,017 28,781 23,902 Middle East 45,714 36,243 88,954 70,760 Argentina & Peru 9,143 8,997 17,302 19,205 Rest of World 11,599 9,733 22,898 21,602 Total $ 189,031 $ 142,167 $ 352,101 $ 303,066 Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Operating income (loss): Americas 5,369 (255 ) 7,264 671 India & Sri Lanka 2,594 (210 ) 1,366 (905 ) Malaysia 3,414 3,305 7,828 4,940 Middle East 3,009 598 8,750 2,215 Argentina & Peru (393 ) (376 ) (436 ) (360 ) Rest of World 865 453 1,264 725 Segment operating income 14,858 3,515 26,036 7,286 Startek consolidation adjustments Goodwill impairment - - - (22,708 ) Intangible amortization (2,583 ) (2,581 ) (5,143 ) (5,163 ) Total operating income $ 12,275 $ 934 $ 20,893 $ (20,585 ) A single client accounted for 16% and 20% of the consolidated total net revenue during the three June 30, 2021 2020, six June 30, 2021 2020, Property, plant and equipment, net by geography based on the location of the assets are presented below: As on As on June 30, 2021 December 31, 2020 Property, plant and equipment, net: Americas 13,127 14,455 India & Sri Lanka 9,618 8,069 Malaysia 3,285 3,749 Middle East 5,509 4,736 Argentina & Peru 1,287 1,257 Rest of World 1,866 1,959 Total $ 34,692 $ 34,225 |
Note 13 - Leases
Note 13 - Leases | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 13. We have operating and finance leases for service centers, corporate offices, and certain equipments. Our leases have remaining lease terms of 1 year to 10 years, some of which include options to extend the leases for up to 3-5 years, and some of which include options to terminate the leases within 1 year. The components of lease expense were as follows: Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Operating lease cost $ 6,479 $ 7,111 $ 13,288 $ 14,370 Finance lease cost: Amortization of right-of-use assets 153 342 339 668 Interest on lease liabilities 15 30 32 74 Total Finance lease cost $ 168 $ 372 $ 371 $ 742 Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 13,246 14,062 Operating cash flow from finance leases 32 74 Financing cash flows from finance leases 371 742 Right-of-use assets obtained in exchange for lease obligations: Operating leases 2,105 17,278 Finance leases - - Supplemental balance sheet information related to leases was as follows: As of June 30, 2021 As of December 31, 2020 Operating leases Operating lease right-of-use assets $ 59,906 $ 69,376 Operating lease liabilities - Current 17,623 19,327 Operating lease liabilities - Non-current 44,326 52,052 Total operating lease liabilities $ 61,949 $ 71,379 Finance Leases Property and equipment, at cost 4,351 4,351 Accumulated depreciation (3,370 ) (3,010 ) Property and equipment, at net $ 981 $ 1,341 Finance lease liabilities - Current 521 516 Finance lease liabilities - Non-current 167 430 Total finance lease liabilities $ 688 $ 946 Weighted average remaining lease term As of June 30, 2021 As of December 31, 2020 Operating leases (in years) 3.86 yrs 4.18 years Finance leases (in years) 0.42 yrs 0.92 years Weighted average discount rate Operating leases 6.8 % 6.9 % Finance leases 6.0 % 6.0 % Maturities of lease liabilities were as follows: Operating Leases Finance Leases Year ending December 31, Remainder of 2021 21,552 287 2022 16,217 441 2023 12,567 - 2024 9,383 - 2025 3,580 - Thereafter 2,512 - Total Lease payments 65,811 728 Less imputed interest (3,862 ) (40 ) Total $ 61,949 $ 688 |
Note 14 - Investment in Equity-
Note 14 - Investment in Equity-accounted Investees | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 14. Following are the entity wise details of equity-accounted investees: % of ownership interest Carrying amount Name of entity June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 a) CSS Corp LP 61.35% 0% 25,052 - b) Immaterial associates - 111 Carrying amount of investment in equity-accounted investees 25,052 111 Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Aggregate amounts of the group’s share of profit/ (loss) of equity-accounted investees (a+b) 59 (12) 45 (20) a) CSS Corp LP On February 25, 2021, The Company and CSP Alpha Holdings Pte. Ltd., a subsidiary of the Company, participated in this transaction by (i) contributing $25 million to acquire approximately 62.5%* August 19, 2022, April 19, 2023, not *Subsequently reduced to 61.35% The Company has assessed CSS Corp LP to be a variable interest entity (‘VIE’) and per ASC 810 10 25 44 not not 323 30 S999 1. Summarised financial position June 30, 2021 December 31, 2020 Current assets 55 - Non-current assets 40,839 - Current and non-current liabilities (59) - Net assets 40,835 - Reconciliation to carrying amounts June 30, 2021 December 31, 2020 Opening net assets - - Acquired during the year 40,750 - Share of profit of equity-accounted investees 85 - Other comprehensive income - - 40,835 - Company share in % 61.35% 0% Company share 25,052 - Carrying amount of investment in equity-accounted investee 25,052 - Summarized statement of comprehensive income Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Revenue - - - - Other income 139 - 139 - Expenses (34) - (54) - Profit for the period 105 - 85 - Other comprehensive income - - - - Total comprehensive income for the period 105 - 85 - Aggregate amounts of the Company share of profit of equity-accounted investee 64 - 52 - b) Individually immaterial associates The Company has individually immaterial investments in equity accounted investee in Australia. It has 33.33% interest in Queensland Partnership Group Pty. Ltd and 16.67% interest in Services Queensland Partnership in Australia. The Company's share of profit/loss of equity accounted investee, is accounted under the “equity method” as per which the share of profit of equity accounted investee has been added to the cost. June 30, 2021 December 31, 2020 Carrying amount of individually immaterial investment in equity-accounted investee - 111 Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Aggregate amounts of share of: Loss of equity-accounted investee (5) (12) (7) (20) Other comprehensive income - - - - (5) (12) (7) (20) |
Note 15 - Subsequent Events
Note 15 - Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 15. None. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles, impairment of goodwill, valuation allowances for deferred tax assets, leases and provision for doubtful debts, and restructuring costs. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable, and management has made assumptions about the possible effects of the novel coronavirus (“COVID- 19” |
Revenue from Contract with Customer [Policy Text Block] | Revenue The Company utilizes a five 606, 4 |
Lessee, Leases [Policy Text Block] | Leases We determine if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, current maturity of operating lease liabilities, and operating lease liabilities in our consolidated balance sheet. Finance leases are included in property plant and equipment, long-term debt, accrued expenses, and other current liabilities in our consolidated balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the balance lease term. As most of our leases do not may The Company elected the practical expedient permitted under the transition guidance under Topic 842, not 12 not not not We have lease agreements with lease and non-lease components, which are generally accounted for separately. Rent discounts and deferment of rent that were received due to COVID- 19 13 |
Business Combinations Policy [Policy Text Block] | Business Combinations The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Intangible Assets Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not December 31, not not not 3 3 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Matters The Company has operations in Argentina and its functional currency has historically been the Argentine Peso. The Company monitors inflation rates in countries where it operates as required by US GAAP. Under ASC 830 10 45 12, three 100%. July 1, 2018. 830, not |
Equity Method Investments [Policy Text Block] | Investment in equity-accounted investees Investment in equity-accounted investee is an entity over which the Company has significant influence and which is neither a subsidiary nor a joint arrangement. Significant influence is the power to participate in the investee's financial and operating policy decisions of the investee but is not Investment in equity-accounted investee is accounted using the equity method of accounting. Under the equity method, the investment in equity-accounted investees is initially recognized at cost and adjusted thereafter for the post-acquisition changes in the Company’s share of net assets of the equity-accounted investees. Goodwill relating to an investment in equity-accounted investees, if any, is included in the carrying amount of the investment and is neither amortized nor individually tested for impairment. The consolidated statement of income reflects the Company’s share of the results of operations of the equity-accounted investees. When there has been a change recognized directly in the equity of the equity-accounted investees, the Company recognizes its share of any changes and discloses this, when applicable, in the statement of stockholders' equity. Unrealized gains and losses resulting from transactions between the Company and the equity-accounted investment are eliminated to the extent of the interest in the equity-accounted investees. The Company’s share of profit/loss of equity-accounted investees is shown on the face of the consolidated statement of income/(loss). The financial statements of the equity-accounted investee are prepared for the same reporting period as the Company. When necessary, adjustments are made to bring the accounting policies in line with those of the Company. After the application of the equity method, the Company determines at each reporting date whether there is any objective evidence that the investment in equity-accounted investees is impaired if there has been other than a temporary decline in carrying value. If this is the case, the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount in the ‘share of profit/(loss) of equity-accounted investees in the consolidated statement of income (loss). |
Share-based Payment Arrangement [Policy Text Block] | Stock-Based Compensation We recognize expenses related to all share-based payments to employees, including grants of employee stock options, based on the grant-date fair values amortized straight-line over the period during which the employees are required to provide services in exchange for the equity instruments. We include an estimate of forfeitures when calculating compensation expenses. We use the Black-Scholes method for valuing stock-based awards. See Note 10, |
Common Stock Warrant Accounting, Policy [Policy Text Block] | Common Stock Warrant Accounting We account for common stock warrants as equity instruments, based on the specific terms of our warrant agreement. For more information refer to Note 10, |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In June 2016, 2016 13, 326 2016 13" December 15, 2022, not 2016 13 In March 2020, No. 2020 04, not not December 31, 2022. |
Note 3 - Goodwill and Intangi_2
Note 3 - Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Reporting Units June 30, 2021 December 31, 2020 Americas 64,315 64,315 India 12,554 12,554 Malaysia 47,543 47,543 Saudi Arabia 54,840 54,840 South Africa - - Argentina - - Australia 4,145 4,145 Total $ 183,397 $ 183,397 June 30, 2021 December 31, 2020 Opening balance 183,397 219,341 Impairment - (35,944 ) Ending balance $ 183,397 $ 183,397 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | As of June 30, 2021 Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Customer relationships 66,220 19,072 47,148 6.5 Brand 49,500 13,226 36,274 7.1 Trademarks 13,210 2,596 10,614 7.5 Other intangibles 2,130 869 1,261 4.9 $ 131,060 $ 35,763 $ 95,297 As of December 31, 2020 Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Customer relationships 66,220 16,289 49,931 6.5 Brand 49,500 11,408 38,092 7.1 Trademarks 13,210 2,155 11,055 7.5 Other intangibles 2,130 768 1,362 4.9 $ 131,060 $ 30,620 $ 100,440 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Years Ending December 31, Amount Remainder of 2021 5,175 2022 10,350 2023 10,306 2024 10,252 2025 10,252 Thereafter 48,962 |
Note 4 - Revenue (Tables)
Note 4 - Revenue (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, Vertical: 2021 2020 2021 2020 Telecom 53,611 50,186 105,285 105,527 Healthcare & Education 40,018 9,178 57,705 22,617 E-commerce & Consumer 26,221 21,354 52,324 47,802 Media & Cable 23,778 22,099 49,572 45,265 Financial & Business Services 15,763 10,438 31,214 23,833 Travel & Hospitality 10,542 14,179 21,039 29,965 Technology, IT & Related Services 4,858 4,402 9,939 9,497 All other verticals 14,645 10,816 25,853 19,323 Gross revenue 189,436 142,652 352,931 303,829 Less: Warrant contra revenue (405 ) (485 ) (830 ) (763 ) Net revenue $ 189,031 $ 142,167 $ 352,101 $ 303,066 |
Note 5 - Net Gain (Loss) Per _2
Note 5 - Net Gain (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Shares used in basic earnings per share calculation: 40,786 38,614 40,689 38,571 Effect of dilutive securities: - - - - Stock options 436 - - - Restricted stock/Deferred stock units - - - - Total effects of dilutive securities 436 - - - Shares used in dilutive earnings per share calculation: 41,222 38,614 40,689 38,571 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Anti-dilutive securities: Stock options 62 1,948 2,114 1,948 |
Note 6 - Impairment Losses & _2
Note 6 - Impairment Losses & Restructuring/Exit Cost (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Employee related Facilities related Total Balance as of December 31, 2020 - 25 25 Accruals/(reversals) 1,837 42 1,879 Payments (1,756 ) (67 ) (1,823 ) Balance as of June 30, 2021 $ 81 $ - $ 81 Employee related Facilities related Total Balance at December 31, 2019 1,326 514 1,840 Accruals/(reversals) 1,499 356 1,855 Payments (2,825 ) (845 ) (3,670 ) Balance at December 31, 2020 $ - $ 25 $ 25 |
Note 7 - Derivative Instrumen_2
Note 7 - Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Gain (Loss) Recognized in AOCI, net of tax Gain (Loss) Recognized in AOCI, net of tax Gain/ (Loss) Reclassified from AOCI into Income Gain/ (Loss) Reclassified from AOCI into Income Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Cash flow hedges: Foreign exchange contracts $ - $ (434 ) $ 8 $ (246 ) |
Schedule of Derivative Instruments [Table Text Block] | Derivatives not designated under ASC 815 For the Three Months Ended June 30, 2021 For the Three Months Ended June 30, 2020 For the Six months ended June 30, 2021 For the Six Months Ended June 30, 2020 Foreign currency forward contracts $ - $ (1,304 ) $ - $ 468 Interest rate swap $ - $ (83 ) $ - $ (423 ) |
Note 9 - Debt (Tables)
Note 9 - Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | June 30, 2021 December 31, 2020 Short term debt Working capital facilities 6,983 15,506 Current portion of long term debt Current maturity of long term loan - - Current maturity of equipment loan 1,773 1,664 Current maturity of finance lease obligations 521 516 Total $ 9,277 17,686 Long term debt Term loan, net of debt issuance costs 162,363 $ 114,930 Equipment loan 2,093 2,955 Finance lease obligations 167 430 Total $ 164,623 $ 118,315 |
Contractual Obligation, Fiscal Year Maturity [Table Text Block] | Years Amount Remainder of 2021 - 2022 4,125 2023 22,688 2024 30,937 2025 57,750 2026 49,500 Total $ 165,000 |
Schedule of Debt Issuance Cost [Table Text Block] | June 30, 2021 December 31, 2020 Opening balance 2,670 4,125 Add: Debt issuance cost (refinancing of term loan) 11,269 - Less: Expensed out (ASC 470 - extinguishment or modification) (10,937 ) - Less: Amortisation of debt issuance cost (365 ) (1,455 ) Closing balance $ 2,637 $ 2,670 |
Note 11 - Accumulated Other C_2
Note 11 - Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustment Derivatives Accounted for as Cash Flow Hedges Defined Benefit Plan Equity attributable to Startek shareholders Non-controlling interests Total Balance at December 31, 2020 (4,529 ) (8 ) (2,749 ) (7,286 ) (3,071 ) (10,357 ) Foreign currency translation (1,968 ) - - (1,968 ) - (1,968 ) Reclassification to operations - 8 - 8 - 8 Unrealized losses - - - - - - Pension remeasurement - - (352 ) (352 ) (69 ) (421 ) Balance at June 30, 2021 $ (6,497 ) $ - $ (3,101 ) $ (9,598 ) $ (3,140 ) $ (12,738 ) |
Note 12 - Segment Reporting (Ta
Note 12 - Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Revenue: Americas 84,680 58,479 148,605 126,647 India & Sri Lanka 24,079 16,698 45,561 40,950 Malaysia 13,816 12,017 28,781 23,902 Middle East 45,714 36,243 88,954 70,760 Argentina & Peru 9,143 8,997 17,302 19,205 Rest of World 11,599 9,733 22,898 21,602 Total $ 189,031 $ 142,167 $ 352,101 $ 303,066 Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Operating income (loss): Americas 5,369 (255 ) 7,264 671 India & Sri Lanka 2,594 (210 ) 1,366 (905 ) Malaysia 3,414 3,305 7,828 4,940 Middle East 3,009 598 8,750 2,215 Argentina & Peru (393 ) (376 ) (436 ) (360 ) Rest of World 865 453 1,264 725 Segment operating income 14,858 3,515 26,036 7,286 Startek consolidation adjustments Goodwill impairment - - - (22,708 ) Intangible amortization (2,583 ) (2,581 ) (5,143 ) (5,163 ) Total operating income $ 12,275 $ 934 $ 20,893 $ (20,585 ) As on As on June 30, 2021 December 31, 2020 Property, plant and equipment, net: Americas 13,127 14,455 India & Sri Lanka 9,618 8,069 Malaysia 3,285 3,749 Middle East 5,509 4,736 Argentina & Peru 1,287 1,257 Rest of World 1,866 1,959 Total $ 34,692 $ 34,225 |
Note 13 - Leases (Tables)
Note 13 - Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Operating lease cost $ 6,479 $ 7,111 $ 13,288 $ 14,370 Finance lease cost: Amortization of right-of-use assets 153 342 339 668 Interest on lease liabilities 15 30 32 74 Total Finance lease cost $ 168 $ 372 $ 371 $ 742 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 13,246 14,062 Operating cash flow from finance leases 32 74 Financing cash flows from finance leases 371 742 Right-of-use assets obtained in exchange for lease obligations: Operating leases 2,105 17,278 Finance leases - - |
Assets And Liabilities, Lessee [Table Text Block] | As of June 30, 2021 As of December 31, 2020 Operating leases Operating lease right-of-use assets $ 59,906 $ 69,376 Operating lease liabilities - Current 17,623 19,327 Operating lease liabilities - Non-current 44,326 52,052 Total operating lease liabilities $ 61,949 $ 71,379 Finance Leases Property and equipment, at cost 4,351 4,351 Accumulated depreciation (3,370 ) (3,010 ) Property and equipment, at net $ 981 $ 1,341 Finance lease liabilities - Current 521 516 Finance lease liabilities - Non-current 167 430 Total finance lease liabilities $ 688 $ 946 Weighted average remaining lease term As of June 30, 2021 As of December 31, 2020 Operating leases (in years) 3.86 yrs 4.18 years Finance leases (in years) 0.42 yrs 0.92 years Weighted average discount rate Operating leases 6.8 % 6.9 % Finance leases 6.0 % 6.0 % |
Finance Lease, Liability, Fiscal Year Maturity [Table Text Block] | Operating Leases Finance Leases Year ending December 31, Remainder of 2021 21,552 287 2022 16,217 441 2023 12,567 - 2024 9,383 - 2025 3,580 - Thereafter 2,512 - Total Lease payments 65,811 728 Less imputed interest (3,862 ) (40 ) Total $ 61,949 $ 688 |
Note 14 - Investment in Equit_2
Note 14 - Investment in Equity-accounted Investees (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Equity Method Investments [Table Text Block] | % of ownership interest Carrying amount Name of entity June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 a) CSS Corp LP 61.35% 0% 25,052 - b) Immaterial associates - 111 Carrying amount of investment in equity-accounted investees 25,052 111 Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Aggregate amounts of the group’s share of profit/ (loss) of equity-accounted investees (a+b) 59 (12) 45 (20) Summarised financial position June 30, 2021 December 31, 2020 Current assets 55 - Non-current assets 40,839 - Current and non-current liabilities (59) - Net assets 40,835 - Reconciliation to carrying amounts June 30, 2021 December 31, 2020 Opening net assets - - Acquired during the year 40,750 - Share of profit of equity-accounted investees 85 - Other comprehensive income - - 40,835 - Company share in % 61.35% 0% Company share 25,052 - Carrying amount of investment in equity-accounted investee 25,052 - Summarized statement of comprehensive income Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Revenue - - - - Other income 139 - 139 - Expenses (34) - (54) - Profit for the period 105 - 85 - Other comprehensive income - - - - Total comprehensive income for the period 105 - 85 - Aggregate amounts of the Company share of profit of equity-accounted investee 64 - 52 - June 30, 2021 December 31, 2020 Carrying amount of individually immaterial investment in equity-accounted investee - 111 Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Aggregate amounts of share of: Loss of equity-accounted investee (5) (12) (7) (20) Other comprehensive income - - - - (5) (12) (7) (20) |
Note 3 - Goodwill and Intangi_3
Note 3 - Goodwill and Intangible Assets (Details Textual) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill Impairment Analysis, Period for Which Revenue, Operating Margins and Cash Flows Are Projected (Year) | 5 years |
Impairment of Intangible Assets, Finite-lived | $ 0 |
Note 3 - Goodwill and Intangi_4
Note 3 - Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Goodwill | $ 183,397 | $ 183,397 | |
Goodwill | 183,397 | $ 219,341 | 219,341 |
Impairment | 0 | $ (22,708) | (35,944) |
Americas [Member] | |||
Goodwill | 64,315 | 64,315 | |
Goodwill | 64,315 | ||
INDIA | |||
Goodwill | 12,554 | 12,554 | |
Goodwill | 12,554 | ||
Malaysia 1 [Member] | |||
Goodwill | 47,543 | 47,543 | |
Goodwill | 47,543 | ||
SAUDI ARABIA | |||
Goodwill | 54,840 | 54,840 | |
Goodwill | 54,840 | ||
SOUTH AFRICA | |||
Goodwill | 0 | 0 | |
Goodwill | 0 | ||
Argentina 1 [Member] | |||
Goodwill | 0 | 0 | |
Goodwill | 0 | ||
AUSTRALIA | |||
Goodwill | 4,145 | $ 4,145 | |
Goodwill | $ 4,145 |
Note 3 - Goodwill and Intangi_5
Note 3 - Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Gross Intangibles | $ 131,060 | $ 131,060 |
Accumulated Amortization | 35,763 | 30,620 |
Net Intangibles | 95,297 | 100,440 |
Customer Relationships [Member] | ||
Gross Intangibles | 66,220 | 66,220 |
Accumulated Amortization | 19,072 | 16,289 |
Net Intangibles | $ 47,148 | $ 49,931 |
Weighted Average Amortization Period (Year) | 6 years 6 months | 6 years 6 months |
Brand [Member] | ||
Gross Intangibles | $ 49,500 | $ 49,500 |
Accumulated Amortization | 13,226 | 11,408 |
Net Intangibles | $ 36,274 | $ 38,092 |
Weighted Average Amortization Period (Year) | 7 years 1 month 6 days | 7 years 1 month 6 days |
Trademarks [Member] | ||
Gross Intangibles | $ 13,210 | $ 13,210 |
Accumulated Amortization | 2,596 | 2,155 |
Net Intangibles | $ 10,614 | $ 11,055 |
Weighted Average Amortization Period (Year) | 7 years 6 months | 7 years 6 months |
Other Intangible Assets [Member] | ||
Gross Intangibles | $ 2,130 | $ 2,130 |
Accumulated Amortization | 869 | 768 |
Net Intangibles | $ 1,261 | $ 1,362 |
Weighted Average Amortization Period (Year) | 4 years 10 months 24 days | 4 years 10 months 24 days |
Note 3 - Goodwill and Intangi_6
Note 3 - Goodwill and Intangible Assets - Expected Future Amortization of Intangible Assets (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Remainder of 2021 | $ 5,175 |
2022 | 10,350 |
2023 | 10,306 |
2024 | 10,252 |
2025 | 10,252 |
Thereafter | $ 48,962 |
Note 4 - Revenue - Disaggregate
Note 4 - Revenue - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | $ 189,436 | $ 142,652 | $ 352,931 | $ 303,829 |
Warrant contra revenue | (405) | (485) | (830) | (763) |
Net revenue | 189,031 | 142,167 | 352,101 | 303,066 |
Communications [Member] | ||||
Revenue | 53,611 | 50,186 | 105,285 | 105,527 |
Health Care and Education [Member] | ||||
Revenue | 40,018 | 9,178 | 57,705 | 22,617 |
E-Commerce and Consumer [Member] | ||||
Revenue | 26,221 | 21,354 | 52,324 | 47,802 |
Media [Member] | ||||
Revenue | 23,778 | 22,099 | 49,572 | 45,265 |
Financial and Business Service [Member] | ||||
Revenue | 15,763 | 10,438 | 31,214 | 23,833 |
Travel and Hospitality [Member] | ||||
Revenue | 10,542 | 14,179 | 21,039 | 29,965 |
Technology, IT and Related Service [Member] | ||||
Revenue | 4,858 | 4,402 | 9,939 | 9,497 |
Other Sector [Member] | ||||
Revenue | $ 14,645 | $ 10,816 | $ 25,853 | $ 19,323 |
Note 5 - Net Gain (Loss) Per _3
Note 5 - Net Gain (Loss) Per Share - Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Weighted average common shares outstanding - basic (in shares) | 40,786 | 38,614 | 40,689 | 38,571 |
Total effects of dilutive securities (in shares) | 436 | 0 | 0 | 0 |
Shares used in dilutive earnings per share calculation: (in shares) | 41,222 | 38,614 | 40,689 | 38,571 |
Share-based Payment Arrangement, Option [Member] | ||||
Effect of dilutive securities (in shares) | 436 | 0 | 0 | 0 |
Restricted Stock/Deferred Stock Units [Member] | ||||
Effect of dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Note 5 - Net Gain (Loss) Per _4
Note 5 - Net Gain (Loss) Per Share - Summary of Anti-dilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement, Option [Member] | ||||
Anti-dilutive securities (in shares) | 62 | 1,948 | 2,114 | 1,948 |
Note 6 - Impairment Losses & _3
Note 6 - Impairment Losses & Restructuring/Exit Cost (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Goodwill, Impairment Loss | $ 0 | $ 22,708 | $ 35,944 |
Facility Closing [Member] | Aegis Transaction Agreement [Member] | |||
Restructuring and Related Cost, Expected Cost Remaining | $ 81 |
Note 6 - Impairment Losses & _4
Note 6 - Impairment Losses & Restructuring Exit Cost - Restructuring and Related Costs (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Balance | $ 25 | $ 1,840 |
Accruals/(reversals) | 1,879 | 1,855 |
Payments | (1,823) | (3,670) |
Ending balance | 81 | 25 |
Employee Severance [Member] | ||
Balance | 0 | 1,326 |
Accruals/(reversals) | 1,837 | 1,499 |
Payments | (1,756) | (2,825) |
Ending balance | 81 | 0 |
Facility Closing [Member] | ||
Balance | 25 | 514 |
Accruals/(reversals) | 42 | 356 |
Payments | (67) | (845) |
Ending balance | $ 0 | $ 25 |
Note 7 - Derivative Instrumen_3
Note 7 - Derivative Instruments (Details Textual) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | |
Derivative, Notional Amount | $ 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Minimum [Member] | |
Derivative, Term of Contract (Month) | 3 months |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Maximum [Member] | |
Derivative, Term of Contract (Month) | 12 months |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Maximum [Member] | |
Derivative, Term of Contract (Month) | 3 years |
Note 7 - Derivative Instrumen_4
Note 7 - Derivative Instruments - Effect of Derivative Instruments Designated as Cash Flow Hedges (Details) - Designated as Hedging Instrument [Member] - Cash Flow Hedging [Member] - Foreign Exchange Contract [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Gain (Loss) Recognized in AOCI, net of tax | $ 0 | $ (434) |
Gain/ (Loss) Reclassified from AOCI into Income | $ 8 | $ (246) |
Note 7 - Derivative Instrumen_5
Note 7 - Derivative Instruments - Summary of Non-designated Hedges (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Foreign Exchange Forward [Member] | ||||
Realized gains and losses | $ 0 | $ (1,304) | $ 0 | $ 468 |
Interest Rate Swap [Member] | ||||
Realized gains and losses | $ 0 | $ (83) | $ 0 | $ (423) |
Note 9 - Debt (Details Textual)
Note 9 - Debt (Details Textual) - USD ($) $ in Thousands | Feb. 18, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Nov. 02, 2020 | Dec. 31, 2019 | Dec. 27, 2018 |
Short-term Debt, Total | $ 6,983 | $ 15,505 | ||||
Loans Payable [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | |||||
Senior Debt Facility [Member] | ||||||
Debt Instrument, Face Amount | $ 185,000 | |||||
Debt Issuance Costs, Net, Total | $ 2,637 | $ 2,670 | $ 4,125 | |||
Senior Debt Facility [Member] | At 21 and 24 Months From Closing [Member] | ||||||
Debt Instrument, Amortization, Percent | 2.50% | |||||
Senior Debt Facility [Member] | At 27, 30, 33, and 36 Months From Closing [Member] | ||||||
Debt Instrument, Amortization, Percent | 3.75% | |||||
Senior Debt Facility [Member] | At 39, 42, 45, 48, and 51 Months From Closing [Member] | ||||||
Debt Instrument, Amortization, Percent | 5.00% | |||||
Senior Debt Facility [Member] | At 54 Months From Closing [Member] | ||||||
Debt Instrument, Amortization, Percent | 10.00% | |||||
Senior Debt Facility [Member] | At 57 Months From Closing [Member] | ||||||
Debt Instrument, Amortization, Percent | 15.00% | |||||
Senior Debt Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | |||||
Senior Debt Facility [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000 | |||||
Senior Debt Facility [Member] | Loans Payable [Member] | ||||||
Debt Instrument, Face Amount | 165,000 | |||||
Debt Issuance Costs, Net, Total | 11,300 | |||||
Interest Expense, Debt, Total | 8,500 | |||||
Senior Term Agreement [Member] | Loans Payable [Member] | ||||||
Debt Issuance Costs, Net, Total | 2,600 | |||||
Interest Expense, Debt, Total | $ 2,500 | |||||
Non-recourse Factoring [Member] | ||||||
Long-term Debt, Gross | 32,700 | |||||
BMO Equipment Loan [Member] | Secured Debt [Member] | ||||||
Debt Instrument, Face Amount | $ 2,060 | |||||
Long-term Debt, Gross | 200 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.57% | |||||
Long-term Debt, Term (Year) | 2 years 6 months | |||||
Equipment Loan [Member] | Secured Debt [Member] | ||||||
Debt Instrument, Face Amount | $ 4,000 | |||||
Long-term Debt, Gross | $ 3,700 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.27% | |||||
Long-term Debt, Term (Year) | 34 months | |||||
Minimum [Member] | Loans Payable [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | |||||
Maximum [Member] | Loans Payable [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | |||||
Line of Credit [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000 | |||||
Short-term Debt, Total | $ 7,000 | |||||
Line of Credit [Member] | Minimum [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |||||
Line of Credit [Member] | Maximum [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% |
Note 9 - Debt - Summary of Debt
Note 9 - Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Short-term Debt, Total | $ 6,983 | $ 15,505 |
Current maturity of long term loan | 2,294 | 2,180 |
Total current debt | 9,277 | 17,686 |
Long term debt | 164,623 | 118,315 |
Loans Payable [Member] | ||
Current maturity of long term loan | 0 | 0 |
Long term debt | 162,363 | 114,930 |
Secured Debt [Member] | ||
Current maturity of long term loan | 1,773 | 1,664 |
Long term debt | 2,093 | 2,955 |
Finance Lease Obligations [Member] | ||
Current maturity of long term loan | 521 | 516 |
Long term debt | 167 | 430 |
Working Capital Facilities [Member] | ||
Short-term Debt, Total | $ 6,983 | $ 15,506 |
Note 9 - Debt - Principal Payme
Note 9 - Debt - Principal Payments Due on Term Loan (Details) - Loans Payable [Member] $ in Thousands | Jun. 30, 2021USD ($) |
Remainder of 2021 | $ 0 |
2022 | 4,125 |
2023 | 22,688 |
2024 | 30,937 |
2025 | 57,750 |
2026 | 49,500 |
Total | $ 165,000 |
Note 9 - Debt - Debt Issuance C
Note 9 - Debt - Debt Issuance Cost (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Add: Debt issuance cost (refinancing of term loan) | $ 2,794 | $ 0 | |
Less: Amortisation of debt issuance cost | (2,827) | (761) | |
Senior Debt Facility [Member] | |||
Opening balance | 2,670 | $ 4,125 | $ 4,125 |
Add: Debt issuance cost (refinancing of term loan) | 11,269 | 0 | |
Less: Expensed out (ASC 470 - extinguishment or modification) | (10,937) | 0 | |
Less: Amortisation of debt issuance cost | (365) | (1,455) | |
Closing balance | $ 2,637 | $ 2,670 |
Note 10 - Share-based Compens_2
Note 10 - Share-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2020 | Jun. 29, 2020 | Feb. 29, 2020 | Jan. 01, 2020 | May 31, 2019 | May 17, 2019 | Jan. 23, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | May 17, 2021 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Warrant Contra Revenue | $ 405 | $ 485 | $ 830 | $ 763 | |||||||||
Share-based Payment Arrangement, Expense | 311 | 591 | |||||||||||
Share-based Payment Arrangement, Option [Member] | |||||||||||||
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 1,284 | $ 1,284 | |||||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 11 months 1 day | ||||||||||||
Aegis Stockholder [Member] | The 2019 Equity Offering [Member] | |||||||||||||
Sale of Stock, Number of Shares Issued in Transaction (in shares) | 692,520 | ||||||||||||
Sale of Stock, Price Per Share (in dollars per share) | $ 7.48 | ||||||||||||
CSP Victory Limited [Member] | |||||||||||||
Sale of Stock, Price Per Share (in dollars per share) | $ 4.87 | ||||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 1,540,041 | ||||||||||||
Amazon Transaction Agreement [Member] | |||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 4,006,051 | 4,000,000 | 4,002,964 | 4,002,964 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 9.94 | $ 9.95 | $ 9.96 | ||||||||||
Class of Warrant or Right, Vested During Period (in shares) | 213,162 | 212,953 | 212,766 | 425,532 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Expected Proceeds from Transaction Required for Vesting | $ 600,000 | ||||||||||||
Warrant Contra Revenue | $ 1,257 | $ 278 | $ 730 | $ 565 | |||||||||
Amazon Transaction Agreement [Member] | Accounting Standards Update 2019-08 [Member] | |||||||||||||
Warrant Contra Revenue | $ (413) |
Note 11 - Accumulated Other C_3
Note 11 - Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |
Balance | $ (4,529) |
Foreign currency translation | (1,968) |
Reclassification to operations | 0 |
Unrealized gains (loss) | 0 |
Pension remeasurement | 0 |
Balance | (6,497) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | |
Balance | (8) |
Foreign currency translation | 0 |
Reclassification to operations | 8 |
Unrealized gains (loss) | 0 |
Pension remeasurement | 0 |
Balance | 0 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |
Balance | (2,749) |
Foreign currency translation | 0 |
Reclassification to operations | 0 |
Unrealized gains (loss) | 0 |
Pension remeasurement | (352) |
Balance | (3,101) |
AOCI Attributable to Parent [Member] | |
Balance | (7,286) |
Foreign currency translation | (1,968) |
Reclassification to operations | 8 |
Unrealized gains (loss) | 0 |
Pension remeasurement | (352) |
Balance | (9,598) |
AOCI Attributable to Noncontrolling Interest [Member] | |
Balance | (3,071) |
Foreign currency translation | 0 |
Reclassification to operations | 0 |
Unrealized gains (loss) | 0 |
Pension remeasurement | (69) |
Balance | (3,140) |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | |
Balance | (10,357) |
Foreign currency translation | (1,968) |
Reclassification to operations | 8 |
Unrealized gains (loss) | 0 |
Pension remeasurement | (421) |
Balance | $ (12,738) |
Note 12 - Segment Reporting (De
Note 12 - Segment Reporting (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||
Concentration Risk, Percentage | 16.00% | 20.00% | 17.00% | 18.00% |
Note 12 - Segment Reporting - S
Note 12 - Segment Reporting - Summary of Segment Reporting Information, By Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Revenue | $ 189,031 | $ 142,167 | $ 352,101 | $ 303,066 | |
Operating income (loss) | 12,275 | 934 | 20,893 | (20,585) | |
Goodwill, Impairment Loss | 0 | 22,708 | $ 35,944 | ||
Property, plant and equipment, net | 34,692 | 34,692 | 34,225 | ||
Operating Segments [Member] | |||||
Operating income (loss) | 14,858 | 3,515 | 26,036 | 7,286 | |
Segment Reconciling Items [Member] | |||||
Goodwill, Impairment Loss | 0 | 0 | 0 | (22,708) | |
Intangible amortization | (2,583) | (2,581) | (5,143) | (5,163) | |
Americas [Member] | |||||
Property, plant and equipment, net | 13,127 | 13,127 | 14,455 | ||
Americas [Member] | Operating Segments [Member] | |||||
Revenue | 84,680 | 58,479 | 148,605 | 126,647 | |
Operating income (loss) | 5,369 | (255) | 7,264 | 671 | |
India and Sri Lanka [Member] | |||||
Property, plant and equipment, net | 9,618 | 9,618 | 8,069 | ||
India and Sri Lanka [Member] | Operating Segments [Member] | |||||
Revenue | 24,079 | 16,698 | 45,561 | 40,950 | |
Operating income (loss) | 2,594 | (210) | 1,366 | (905) | |
Malaysia 1 [Member] | |||||
Property, plant and equipment, net | 3,285 | 3,285 | 3,749 | ||
Malaysia 1 [Member] | Operating Segments [Member] | |||||
Revenue | 13,816 | 12,017 | 28,781 | 23,902 | |
Operating income (loss) | 3,414 | 3,305 | 7,828 | 4,940 | |
Middle East [Member] | |||||
Property, plant and equipment, net | 5,509 | 5,509 | 4,736 | ||
Middle East [Member] | Operating Segments [Member] | |||||
Revenue | 45,714 | 36,243 | 88,954 | 70,760 | |
Operating income (loss) | 3,009 | 598 | 8,750 | 2,215 | |
Argentina and Peru [Member] | |||||
Property, plant and equipment, net | 1,287 | 1,287 | 1,257 | ||
Argentina and Peru [Member] | Operating Segments [Member] | |||||
Revenue | 9,143 | 8,997 | 17,302 | 19,205 | |
Operating income (loss) | (393) | (376) | (436) | (360) | |
Rest of World [Member] | |||||
Property, plant and equipment, net | 1,866 | 1,866 | $ 1,959 | ||
Rest of World [Member] | Operating Segments [Member] | |||||
Revenue | 11,599 | 9,733 | 22,898 | 21,602 | |
Operating income (loss) | $ 865 | $ 453 | $ 1,264 | $ 725 |
Note 13 - Leases (Details Textu
Note 13 - Leases (Details Textual) | 6 Months Ended |
Jun. 30, 2021 | |
Lessee, Lease, Termination Period (Year) | 1 year |
Minimum [Member] | |
Lease, Remaining Lease Term (Year) | 1 year |
Lessee, Lease, Renewal Term (Year) | 3 years |
Maximum [Member] | |
Lease, Remaining Lease Term (Year) | 10 years |
Lessee, Lease, Renewal Term (Year) | 5 years |
Note 13 - Leases - Components o
Note 13 - Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating lease cost | $ 6,479 | $ 7,111 | $ 13,288 | $ 14,370 |
Amortization of right-of-use assets | 153 | 342 | 339 | 668 |
Interest on lease liabilities | 15 | 30 | 32 | 74 |
Total Finance lease cost | $ 168 | $ 372 | 371 | 742 |
Operating cash flows from operating leases | 13,246 | 14,062 | ||
Operating cash flow from finance leases | 32 | 74 | ||
Financing cash flows from finance leases | 371 | 742 | ||
Operating leases | 2,105 | 17,278 | ||
Finance leases | $ 0 | $ 0 |
Note 13 - Leases - Supplemental
Note 13 - Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Operating lease right-of-use assets | $ 59,906 | $ 69,376 |
Operating lease liabilities - Current | 17,623 | 19,327 |
Operating lease liabilities - Non-current | 44,326 | 52,052 |
Total operating lease liabilities | 61,949 | 71,379 |
Property and equipment, at cost | 4,351 | 4,351 |
Accumulated depreciation | (3,370) | (3,010) |
Property and equipment, at net | 981 | 1,341 |
Finance lease liabilities - Current | 521 | 516 |
Finance lease liabilities - Non-current | 167 | 430 |
Total finance lease liabilities | $ 688 | $ 946 |
Operating leases (Year) | 3 years 10 months 9 days | 4 years 2 months 4 days |
Finance leases (Year) | 5 months 1 day | 11 months 1 day |
Operating leases | 6.80% | 6.90% |
Finance leases | 6.00% | 6.00% |
Note 13 - Leases - Maturities o
Note 13 - Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Remainder of 2021 | $ 21,552 | |
Remainder of 2021, Finance leases | 287 | |
2022, Operating leases | 16,217 | |
2022, Finance leases | 441 | |
2023, Operating leases | 12,567 | |
2023, Finance leases | 0 | |
2024, Operating leases | 9,383 | |
2024, Finance leases | 0 | |
2025, Operating leases | 3,580 | |
2025, Finance leases | 0 | |
Thereafter, Operating leases | 2,512 | |
Thereafter, Finance leases | 0 | |
Total lease payments, Operating leases | 65,811 | |
Total lease payments, Finance leases | 728 | |
Less imputed interest, Operating leases | (3,862) | |
Less imputed interest, Finance leases | (40) | |
Total, Operating leases | 61,949 | $ 71,379 |
Total, Finance leases | $ 688 | $ 946 |
Note 14 - Investment in Equit_3
Note 14 - Investment in Equity-accounted Investees (Details Textual) - USD ($) $ in Thousands | Feb. 25, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Payments to Acquire Equity Method Investments | $ 25,000 | $ 0 | ||
CSP Management Limited [Member] | ||||
Payments to Acquire Call Options | $ 5,000 | |||
CSS Corp. [Member] | ||||
Payments to Acquire Equity Method Investments | $ 25,000 | |||
Equity Method Investment, Ownership Percentage | 26.00% | |||
CSS Corp LP [Member] | ||||
Payments to Acquire Equity Method Investments | $ 25,000 | |||
Equity Method Investment, Ownership Percentage | 62.50% | 61.35% | 0.00% | |
Queensland Partnership Group Pty. Ltd. [Member] | ||||
Equity Method Investment, Ownership Percentage | 33.33% | |||
Services Queensland Partnership [Member] | ||||
Equity Method Investment, Ownership Percentage | 16.67% |
Note 14 - Investment in Equit_4
Note 14 - Investment in Equity-accounted Investees - Equity-accounted Investees (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Feb. 25, 2021 | |
Carrying amount of investment in equity-accounted investees | $ 25,052 | $ 25,052 | $ 111 | |||
Aggregate amounts of the group’s share of profit/ (loss) of equity-accounted investees (a+b) | 59 | $ (12) | 45 | $ (20) | ||
Current assets | 214,631 | 214,631 | 198,440 | |||
Non-current assets | 416,314 | 416,314 | 406,213 | |||
Current and non-current liabilities | (385,475) | (385,475) | (357,771) | |||
Net loss | 8,120 | (5,188) | (1,735) | (31,169) | ||
Other Comprehensive Income (Loss), Net of Tax, Total | (913) | (2,307) | (2,381) | (6,975) | ||
Revenue | 189,436 | 142,652 | 352,931 | 303,829 | ||
Operating income/ (loss) | 12,275 | 934 | 20,893 | (20,585) | ||
Total comprehensive income for the period | 7,207 | (7,495) | (4,116) | (38,144) | ||
Loss of equity-accounted investee | 59 | (12) | 45 | (20) | ||
Equity Method Investment, Aggregate Income (Loss) | 59 | (12) | 45 | (20) | ||
CSS Corp LP [Member] | ||||||
Aggregate amounts of the group’s share of profit/ (loss) of equity-accounted investees (a+b) | 64 | 52 | ||||
Current assets | 55 | 55 | ||||
Non-current assets | 40,839 | 40,839 | ||||
Current and non-current liabilities | (59) | (59) | ||||
Net assets | 40,835 | 40,835 | ||||
Opening net assets | ||||||
Acquired during the year | 40,750 | |||||
Net loss | 85 | |||||
Other Comprehensive Income (Loss), Net of Tax, Total | ||||||
Net Assets, Ending Balance | 40,835 | 40,835 | ||||
Revenue | ||||||
Other income | 139 | 0 | 139 | 0 | ||
Expenses | (34) | (54) | ||||
Operating income/ (loss) | 105 | 85 | ||||
Total comprehensive income for the period | 105 | 85 | ||||
Equity Method Investment, Aggregate Income (Loss) | 64 | 52 | ||||
Immaterial Associates [Member] | ||||||
Carrying amount of investment in equity-accounted investees | $ 111 | |||||
Aggregate amounts of the group’s share of profit/ (loss) of equity-accounted investees (a+b) | (5) | (12) | (7) | (20) | ||
Other Comprehensive Income (Loss), Net of Tax, Total | ||||||
Loss of equity-accounted investee | (5) | (12) | (7) | (20) | ||
Equity Method Investment, Aggregate Income (Loss) | $ (5) | $ (12) | $ (7) | $ (20) | ||
CSS Corp LP [Member] | ||||||
% of ownership interest | 61.35% | 61.35% | 0.00% | 62.50% | ||
Carrying amount of investment in equity-accounted investees | $ 25,052 | $ 25,052 | ||||
CSS Corp LP [Member] | CSS Corp LP [Member] | ||||||
% of ownership interest | 61.35% | 61.35% | 0.00% |