Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38442 | |
Entity Registrant Name | IBEX LIMITED | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 00-0000000 | |
Entity Address, Address Line One | 1717 Pennsylvania Avenue NW | |
Entity Address, Address Line Two | Suite 825 | |
Entity Address, City or Town | Washington | |
Entity Address, State or Province | DC | |
Entity Address, Postal Zip Code | 20006 | |
City Area Code | 202 | |
Local Phone Number | 580-6200 | |
Title of 12(b) Security | Common shares, par value $0.0001 | |
Trading Symbol | IBEX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,214,446 | |
Amendment Flag | false | |
Entity Central Index Key | 0001720420 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --06-30 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 50,665 | $ 57,429 |
Accounts receivable, net | 103,317 | 86,364 |
Prepaid expenses | 5,885 | 6,616 |
Due from related parties | 164 | 43 |
Tax advances and receivables | 9,133 | 5,965 |
Other current assets | 2,187 | 2,190 |
Total current assets | 171,351 | 158,607 |
Non-current assets | ||
Property and equipment, net | 31,465 | 41,151 |
Operating lease assets | 62,157 | 70,919 |
Goodwill | 11,832 | 11,832 |
Deferred tax asset, net | 3,998 | 4,585 |
Other non-current assets | 8,782 | 6,230 |
Total non-current assets | 118,234 | 134,717 |
Total assets | 289,585 | 293,324 |
Current liabilities | ||
Accounts payable and accrued liabilities | 17,538 | 18,705 |
Accrued payroll and employee-related liabilities | 30,791 | 29,360 |
Current deferred revenue | 5,396 | 6,413 |
Current operating lease liabilities | 13,073 | 13,036 |
Current maturities of long-term debt | 585 | 413 |
Due to related parties | 61 | 2,314 |
Income taxes payable | 3,320 | 3,020 |
Total current liabilities | 70,764 | 73,261 |
Non-current liabilities | ||
Non-current deferred revenue | 1,302 | 1,383 |
Non-current operating lease liabilities | 55,660 | 64,854 |
Long-term debt | 820 | 600 |
Other non-current liabilities | 1,728 | 3,262 |
Total non-current liabilities | 59,510 | 70,099 |
Total liabilities | 130,274 | 143,360 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity | ||
Common stock: par value $0.0001, 108,057,967 shares authorized, 17,214,446 and 18,280,419 shares outstanding as of March 31, 2024 and June 30, 2023, respectively | 2 | 2 |
Additional paid-in capital | 209,062 | 204,734 |
Treasury stock at cost: 1,370,323 and 245,447 shares as of March 31, 2024 and June 30, 2023, respectively | (22,233) | (3,682) |
Accumulated other comprehensive loss | (6,552) | (6,312) |
Accumulated deficit | (20,968) | (44,778) |
Total stockholders' equity | 159,311 | 149,964 |
Total liabilities and stockholders' equity | $ 289,585 | $ 293,324 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2024 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock: par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock: shares authorized (in shares) | 108,057,967 | 108,057,967 |
Common stock: shares outstanding (in shares) | 17,214,446 | 18,280,419 |
Treasury stock at cost (in shares) | 1,370,323 | 245,447 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Revenue | $ 126,795 | $ 131,557 | $ 384,038 | $ 398,687 |
Cost of services (exclusive of depreciation and amortization presented separately below) | 87,083 | 91,693 | 271,163 | 287,636 |
Selling, general and administrative | 23,565 | 22,139 | 71,462 | 64,946 |
Depreciation and amortization | 4,865 | 4,674 | 14,853 | 13,933 |
Total operating expenses | 115,513 | 118,506 | 357,478 | 366,515 |
Income from operations | 11,282 | 13,051 | 26,560 | 32,172 |
Interest income | 431 | 205 | 1,529 | 391 |
Interest expense | (124) | (105) | (339) | (553) |
Income before income taxes | 11,589 | 13,151 | 27,750 | 32,010 |
Provision for income tax expense | (1,279) | (1,872) | (3,940) | (4,938) |
Net income | 10,310 | 11,279 | 23,810 | 27,072 |
Other comprehensive income / (loss) | ||||
Foreign currency translation adjustments | (288) | (1,039) | (310) | (2,162) |
Unrealized (loss) / gain on cash flow hedging instruments, net of tax | (131) | 216 | 70 | 769 |
Total other comprehensive loss | (419) | (823) | (240) | (1,393) |
Total comprehensive income | $ 9,891 | $ 10,456 | $ 23,570 | $ 25,679 |
Net income per share | ||||
Basic (in dollars per share) | $ 0.59 | $ 0.62 | $ 1.33 | $ 1.49 |
Diluted (in dollars per share) | $ 0.57 | $ 0.59 | $ 1.29 | $ 1.44 |
Weighted average common shares outstanding | ||||
Basic (in shares) | 17,468 | 18,230 | 17,880 | 18,179 |
Diluted (in shares) | 18,036 | 19,065 | 18,458 | 18,861 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands | Total | Common shares | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income / (Loss) | Accumulated Deficit |
Balance, beginning of period (in shares) at Jun. 30, 2022 | 18,247,000 | |||||
Balance, beginning of period at Jun. 30, 2022 | $ 113,459 | $ 2 | $ (3,406) | $ 197,785 | $ (4,562) | $ (76,360) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 27,072 | 27,072 | ||||
Foreign currency translation adjustments | (2,162) | (2,162) | ||||
Changes in fair value of cash flow hedges | $ 769 | 769 | ||||
Purchase of treasury shares (in shares) | (17,558) | (18,000) | ||||
Purchase of treasury shares | $ (276) | (276) | ||||
Provision for common stock warrants | 856 | 856 | ||||
Issue of common shares (in shares) | 103,000 | |||||
Issuance of common shares | 1,827 | 1,827 | ||||
Forfeiture of restricted common shares | (68,000) | |||||
Share-based compensation expense | 2,823 | 2,823 | ||||
Balance, end of period (in shares) at Mar. 31, 2023 | 18,264,000 | |||||
Balance, end of period at Mar. 31, 2023 | 144,368 | $ 2 | (3,682) | 203,291 | (5,955) | (49,288) |
Balance, beginning of period (in shares) at Dec. 31, 2022 | 18,298,000 | |||||
Balance, beginning of period at Dec. 31, 2022 | 131,723 | $ 2 | (3,682) | 201,102 | (5,132) | (60,567) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 11,279 | 11,279 | ||||
Foreign currency translation adjustments | (1,039) | (1,039) | ||||
Changes in fair value of cash flow hedges | 216 | 216 | ||||
Provision for common stock warrants | 260 | 260 | ||||
Issue of common shares (in shares) | 34,000 | |||||
Issuance of common shares | 618 | 618 | ||||
Forfeiture of restricted common shares | (68,000) | |||||
Share-based compensation expense | 1,311 | 1,311 | ||||
Balance, end of period (in shares) at Mar. 31, 2023 | 18,264,000 | |||||
Balance, end of period at Mar. 31, 2023 | $ 144,368 | $ 2 | (3,682) | 203,291 | (5,955) | (49,288) |
Balance, beginning of period (in shares) at Jun. 30, 2023 | 18,280,419 | 18,280,000 | ||||
Balance, beginning of period at Jun. 30, 2023 | $ 149,964 | $ 2 | (3,682) | 204,734 | (6,312) | (44,778) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 23,810 | 23,810 | ||||
Foreign currency translation adjustments | (310) | (310) | ||||
Changes in fair value of cash flow hedges | $ 70 | 70 | ||||
Purchase of treasury shares (in shares) | (1,124,876) | (1,125,000) | ||||
Purchase of treasury shares | $ (18,551) | (18,551) | ||||
Provision for common stock warrants | 893 | 893 | ||||
Issue of common shares (in shares) | 59,000 | |||||
Issuance of common shares | 362 | 362 | ||||
Share-based compensation expense | $ 3,073 | 3,073 | ||||
Balance, end of period (in shares) at Mar. 31, 2024 | 17,214,446 | 17,214,000 | ||||
Balance, end of period at Mar. 31, 2024 | $ 159,311 | $ 2 | (22,233) | 209,062 | (6,552) | (20,968) |
Balance, beginning of period (in shares) at Dec. 31, 2023 | 17,681,000 | |||||
Balance, beginning of period at Dec. 31, 2023 | 156,113 | $ 2 | (14,116) | 207,638 | (6,133) | (31,278) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 10,310 | 10,310 | ||||
Foreign currency translation adjustments | (288) | (288) | ||||
Changes in fair value of cash flow hedges | $ (131) | (131) | ||||
Purchase of treasury shares (in shares) | (501,549) | (502,000) | ||||
Purchase of treasury shares | $ (8,117) | (8,117) | ||||
Provision for common stock warrants | 299 | 299 | ||||
Issue of common shares (in shares) | 35,000 | |||||
Issuance of common shares | 351 | 351 | ||||
Share-based compensation expense | $ 774 | 774 | ||||
Balance, end of period (in shares) at Mar. 31, 2024 | 17,214,446 | 17,214,000 | ||||
Balance, end of period at Mar. 31, 2024 | $ 159,311 | $ 2 | $ (22,233) | $ 209,062 | $ (6,552) | $ (20,968) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 23,810 | $ 27,072 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 14,853 | 13,933 |
Noncash lease expense | 9,908 | 10,946 |
Warrant contra revenue | 893 | 856 |
Deferred income tax | 586 | 3,018 |
Share-based compensation expense | 2,741 | 3,973 |
Allowance of expected credit losses | 62 | 105 |
Impairment losses | 1,257 | 0 |
Gain on sale of subsidiaries | 0 | (246) |
Change in assets and liabilities: | ||
Increase in accounts receivable | (16,941) | (17,846) |
(Increase) / decrease in prepaid expenses and other current assets | (5,350) | 2,242 |
Decrease in accounts payable and accrued liabilities | (2,336) | (6,077) |
Decrease in deferred revenue | (1,098) | (2,721) |
Operating lease liabilities | (9,907) | (10,831) |
Net cash inflow from operating activities | 18,478 | 24,424 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (6,635) | (15,231) |
Cash outflow from sale of subsidiaries, net of cash received | 0 | (85) |
Net cash outflow from investing activities | (6,635) | (15,316) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from line of credit | 153 | 43,390 |
Repayments of line of credit | (205) | (54,541) |
Repayment of debt | 0 | (3,795) |
Proceeds from the exercise of options | 362 | 1,827 |
Principal payments on finance leases | (342) | (353) |
Purchase of treasury shares | (18,551) | (276) |
Net cash outflow from financing activities | (18,583) | (13,748) |
Effects of exchange rate difference on cash and cash equivalents | (24) | (515) |
Net decrease in cash and cash equivalents | (6,764) | (5,155) |
Cash and cash equivalents, beginning | 57,429 | 48,831 |
Cash and cash equivalents, ending | 50,665 | 43,676 |
Supplemental cash flow disclosures | ||
Cash paid for interest | 339 | 553 |
Cash paid for income taxes | 5,428 | 2,927 |
Supplemental non-cash disclosures | ||
Change in accounts payable related to fixed assets | $ (786) | $ (21) |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Summary of Significant Accounting Policies | OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES OVERVIEW IBEX Limited (“IBEX” and together with its subsidiaries, the “Company,” “ibex,” “we,” “us,” or “our”) was incorporated on February 28, 2017 in Hamilton, Bermuda. Our registered office in Bermuda is Crawford House, 50 Cedar Avenue, Hamilton HM 11, Bermuda. We are a “controlled company” within the meaning of the rules of Nasdaq, with The Resource Group International Limited (“TRGI”) being our controlling shareholder. TRG Pakistan Limited holds a controlling interest in TRGI. On August 7, 2020, the Company was admitted to trade on the Nasdaq Global Market under the ticker symbol “IBEX.” The Company is an end-to-end provider of technology-enabled customer lifecycle experience (“CLX”) solutions. Through the Company’s integrated CLX platform, a comprehensive portfolio of solutions is offered to optimize customer acquisition, engagement, expansion and experience for clients. The Company leverages sophisticated technology and proprietary analytics, in combination with its global footprint and business process outsourcing expertise, to protect and enhance clients’ brands. Our services cover three main areas: • ibex Connect: Our Connect business lies at the core of our offerings and generates the majority of the Company’s revenue. This business unit delivers differentiated customer service (assisting our clients’ customers with information about our clients and their products or services), technical support (providing specialized teams to provide information, assistance and technical guidance to our clients’ customers on a specific product or service), revenue generation (upselling and cross selling) and other value-added outsourced back office services (finance and accounting, marketing support, sales operations, and human resources administration) to our clients. We deploy these capabilities through a true omni-channel CX model, which integrates voice, email, chat, SMS, social media and other communication applications. • ibex Digital: Our ibex Digital suite of solutions works with consumer-facing businesses to help them build, grow and scale technology-driven customer acquisition solutions, while helping drive digital transformation. We offer digital marketing, e-commerce technology, and platform solutions for our clients, helping them build new customer acquisition channels, increase acquired customers, and often do both at a reduced cost. • ibex CX: Our CX business measures, monitors and manages our clients’ holistic customer experiences. By offering a 360-degree CX approach, our clients can harness the power of data and customer feedback to differentiate themselves within today’s “customer expectation economy.” We enable our clients to improve retention of their customers, identify and manage service issues in real time, predict future behavior and outcomes, derive impact analysis scenarios and assign “action plans” throughout the enterprise. Operating segments An operating segment is defined as a component of a company for which separate financial information is available and which is regularly evaluated by the chief operating decision maker (“CODM”) for the purpose of making decisions regarding resource allocation and performance assessment. The Company’s CODM is the chief executive officer (“CEO”). The Company’s CODM reviews consolidated financial results to make decisions, allocate resources and assess performance. Therefore, the Company has determined that it operates in a single operating and reportable segment. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and principles of consolidation The Company’s interim consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and include the financial results of all wholly-owned subsidiaries. When the Company does not have majority ownership in an entity but exerts significant influence over that entity, the Company accounts for the entity under the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation. These unaudited consolidated financial statements and accompanying notes have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (the “Annual Report”) as filed with the SEC. There have been no changes to the Company’s significant accounting policies described in the Annual Report that have had a material impact on the Company’s consolidated financial statements and related notes. In the opinion of the Company, these unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of March 31, 2024, its results of operations, comprehensive income, and shareholders’ equity for the three and nine months ended March 31, 2024 and 2023, and cash flows for the nine months ended March 31, 2024 and 2023. The consolidated balance sheet as of June 30, 2023, was derived from the audited annual financial statements included in the Annual Report. Use of estimates The preparation of 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 useful lives for property and equipment; impairment of long-lived assets, operating lease assets and liabilities, goodwill, and other intangible assets; allowance for credit losses; valuation allowances for deferred tax assets and other receivables; fair value of share-based compensation, warrants, and derivatives, and legal provisions. The Company bases its estimates on historical experience and other assumptions it believes are reasonable, including the use of outside experts as necessary, and updates these estimates on an ongoing basis and as new events occur, more experience is acquired and/or more information is obtained. Actual results could differ materially from these estimates. Concentration of credit risk The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial. The Company regularly monitors its credit risk to mitigate losses. The Company evaluates the creditworthiness of its clients prior to and throughout the life of the client relationship. The Company does not believe it is exposed to more than a nominal amount of credit risk in its derivative instruments as all of its counterparties are investment-grade financial institutions. Property and equipment Property and equipment and assets leased under financing leases are carried at cost at the acquisition date and are depreciated using the straight-line method over their estimated useful lives. Property and equipment assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is assessed by a comparison of the carrying amount of the asset to the estimated future undiscounted net cash flows expected to be generated by the asset. If estimated future undiscounted net cash flows are less than the carrying value of the asset, an impairment loss is recognized to the extent its carrying value exceeds its estimated fair value. During quarter ended March 31, 2024 , we determined that the estimated fair value for certain assets at two of our delivery locations no longer exceeded their carrying value. The fair value of these assets was based on various assumptions including our ability to redeploy and utilize the assets at other sites. We recognized impairment losses related to leasehold improvements, furniture & fixtures, and computer equipment of $1.3 million during both the three and nine months ended March 31, 2024, which is included in selling, general and administrative expense in the consolidated statements of comprehensive income. There were no impairment closses recognized during the three and nine months ended March 31, 2023 . Leases The Company determines whether an arrangement contains a lease at inception in accordance with the provisions of Accounting Standards Codification (“ASC”) 842, Leases . Operating leases are included in operating lease assets and current and non-current operating lease liabilities, and assets leased under finance leases are included in property and equipment and current and long-term debt in the consolidated balance sheets. Operating lease assets represent the Company’s right to use an underlying asset for the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease expense is recognized on a straight-line basis over the lease term in cost of services or selling, general and administrative expense, as applicable. Interest on finance leases is included in interest expense in the consolidated statements of comprehensive income. Share-based compensation plans The Company accounts for its share-based awards in accordance with provisions of ASC 718, Compensation - Stock Compensation . The Company calculates the fair value of option awards using the Black-Scholes model. For equity-classified awards, total compensation cost is based on the grant date fair value. For liability-classified awards, total compensation cost is based on the fair value of the award on the date the award is granted and is subsequently re-measured at each reporting date until settlement. The Company recognizes share-based compensation expense over the requisite vesting period using a graded vesting model. Awards to employees and directors may contain service, performance and/or market vesting conditions. For unvested awards with performance conditions, the Company assesses the probability of attaining the performance conditions at each reporting period. Awards that are deemed probable of attainment are recognized in expense over the requisite service period. The Company accounts for forfeitures as they occur. Share repurchase programs The board of directors may authorize share repurchases of the Company’s common shares. Purchases made pursuant to these authorizations may be carried out through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on the market conditions and in accordance with applicable rules and regulations, at times and in such amounts as the Company deems appropriate. Shares repurchased under such authorizations are held in treasury for general corporate purposes, including issuances under various employee share-based award plans. When Company shares are repurchased, the amount of the consideration paid (including directly attributable costs, net of any tax effects) is recognized as a deduction of additional paid in capital. Repurchased shares are classified as treasury shares and are presented as a deduction from total equity. When treasury shares are subsequently sold or reissued, the amount received is recognized as an increase in additional paid in capital, and any resulting surplus or deficit on the transaction is reclassified to accumulated deficit. Cloud Computing Software Implementation Costs The Company incurs costs to implement cloud computing arrangements that are hosted by a third-party vendor. In accordance with ASC 350-40, Goodwill and Other, Internal-Use Software, for cloud computing arrangements that meet the definition of a service contract, the Company capitalizes qualifying implementation costs incurred during the application development stage in other non-current assets. Capitalized costs are primarily comprised of third-party consulting fees, direct labor, and related expenses. Capitalization of these costs concludes once the project is substantially complete and the software is ready for the Company's intended use. Once available for its intended use, the capitalized costs will be amortized on a straight-line basis over the term of the associated hosting arrangement including periods covered by an option to extend, and are included in selling, general and administrative expenses in the consolidated statements of comprehensive income. Costs related to data conversion, overhead, general and administrative activities, and training are expensed as incurred. Post-configuration training and maintenance costs are expensed as incurred. The Company capitalized $1.2 million and $2.4 million during the three and nine months ended March 31, 2024, respectively. There were no costs capitalized during the three and nine months ended March 31, 2023 . Other postemployment benefits During the three and nine months ended March 31, 2024, the Company eliminated certain positions that it considered redundant and incurred approximately $1.5 million in severance costs, of which $1.3 million is recorded in selling, general and administrative expense and $0.2 million is recorded in cost of services in the consolidated statements of comprehensive income. As of March 31, 2024, $1.0 million was accrued and is expected to be paid by July 30, 2025. Emerging Growth Company The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Accordingly, the Company has the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies pursuant to Section 13(a) of the Exchange Act. The Company has elected to use the extended transition period until we are no longer an emerging growth company or until we choose to opt out of the extended transition period affirmatively and irrevocably. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The amendments in ASU No. 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of the new guidance on the disclosures to our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign), and (3) the income tax expense or benefit from continuing operations (separated by federal, state and foreign). This update also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The amendments in ASU No. 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of the new guidance on the disclosures to our consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS The Company recognizes revenues for services for which control has transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring the promised services. This process involves identifying the customer contract, determining the performance obligations in the contract, determining the transaction price, allocating the transaction price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it (a) provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and (b) is separately identified in the contract. The Company considers a performance obligation satisfied as it provides services to a customer, meaning the customer has the ability to direct the use and obtain the benefit of the service. Revenues from contact center services, which consist of customer service, technical support and other value-added outsourced back-office services, are recognized as the services are performed on the basis of the number of billable minutes or hours, contractual rates, and other contractually agreed metrics, if applicable. Certain of our client contracts include bonus and penalty provisions. Revenues related to training that occurs upon commencement of a new client contract or statement of work are deferred and recognized on a straight-line basis over the estimated life of the client program, as it is not considered to have a standalone value to the customer. The related expenses are expensed as incurred. Revenues are recognized over time as performance obligations are satisfied and in the period in which the Company has a right to invoice, net of discounts, incentives, and/or penalties as per contractual terms. Bonuses and penalties accrue for the current billing period and do not depend on future performance. In some cases, we may estimate these bonuses or penalties using the “most likely amount” method based on actual data and historical experience. Revenues from digital services are recognized at a point in time upon the successful consumer activation or purchase of clients’ services. We utilize third parties in the satisfaction of this performance obligation; however, because we retain control over these third parties and are solely responsible for the risk and reward associated with this performance obligation, we have determined that we are the principal in these transactions and therefore recognize revenue on a gross basis. Revenues from CX software-as-a-service products are recognized over time based on the term of the subscription. Set-up fees to customize the customer experience solution for client’s specific needs are deferred and recognized on a straight-line basis over the term of the subscription. Revenues related to additional consulting services are recognized over the period as the related services are performed on a per hour basis. All of our contracts include the right to invoice for services on a monthly basis. None of our contracts include significant termination penalties, and generally may be terminated for convenience at any time with a short notice period (generally 30 to 120 days). The Company generally does not incur significant upfront costs to fulfill or obtain a contract that would qualify for capitalization under ASC 606, Revenue from Contracts with Customers . Disaggregation of Revenue The majority of the Company’s revenues are derived from contracts with customers who are located in the United States of America (the "United States" or "U.S."). However, the Company delivers most of its services from regional customer experience delivery centers that are located in geographies outside of the United States. Our global delivery model is built on regional customer experience delivery centers and includes a unique ability to support work-at-home capabilities in any region that we currently operate. The Company generated approximately 97% of its revenue from clients based in the United States for both the three and nine months ended March 31, 2024, as follows: Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Revenue United States $ 122,822 $ 128,184 $ 372,612 $ 387,694 Other countries 3,973 3,373 11,426 10,993 Total $ 126,795 $ 131,557 $ 384,038 $ 398,687 The following table presents the breakdown of the Company’s revenues by geographical location, based on where the services are provided: Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Revenue Onshore (United States) $ 30,748 $ 37,264 $ 92,195 $ 112,864 Offshore (Philippines, Pakistan) 60,840 56,242 183,109 166,690 Nearshore (Jamaica, Nicaragua, Honduras) 35,207 38,051 108,734 119,133 Total $ 126,795 $ 131,557 $ 384,038 $ 398,687 The following table presents the breakdown of the Company’s revenue by pattern of revenue recognition: Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Pattern of Revenue recognition Services transferred over time $ 120,029 $ 124,001 $ 360,168 $ 373,869 Services transferred at a point in time 6,766 7,556 23,870 24,818 Total $ 126,795 $ 131,557 $ 384,038 $ 398,687 The movement in the Company's deferred revenue is as follows: Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Beginning balance $ 8,097 $ 9,688 $ 7,796 $ 12,593 Revenue recognized (2,368) (1,840) (7,301) (9,789) Revenue deferred 969 2,024 6,203 7,068 Ending balance $ 6,698 $ 9,872 $ 6,698 $ 9,872 |
Accounts Receivable and Signifi
Accounts Receivable and Significant Clients | 9 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Accounts Receivable and Significant Clients | ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS Accounts receivable, net in the accompanying consolidated balance sheets consists of the following: March 31, June 30, ($000s) 2024 2023 Accounts receivable $ 103,424 $ 86,484 Less: Allowance for credit losses (107) (120) Accounts receivable, net $ 103,317 $ 86,364 The Company estimates its expected credit losses using the lifetime expected credit loss model. The allowance for credit losses is calculated quarterly based on the Company’s historical loss percentages, net of recoveries. In addition to the evaluation of historical losses, the Company considers current and future economic conditions and events such as changes in customer credit quality and liquidity. The Company will write-off accounts receivable against the allowance when it determines a balance is uncollectible. Activity in the Company’s allowance for credit losses consists of the following: Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Beginning balance $ 117 $ 424 $ 120 $ 1,290 Provision for credit losses 69 17 93 155 Reversal of provision for credit losses (13) (29) (31) (50) Uncollectible receivables written off (67) (4) (78) (955) Effect of foreign exchange 1 (37) 3 (69) Ending balance $ 107 $ 371 $ 107 $ 371 Significant Client During the nine months ended March 31, 2024 and 2023 , the Company had one client that contributed approximately 12.8% and 13.0% of total revenue, respectively. To limit the Company’s credit risk with its clients, management regularly monitors the aging of customer receivables, maintains allowances for credit losses and may require prepayment for services from certain clients. Based on currently available information, management does not believe significant credit risk exists as of March 31, 2024. |
Leases
Leases | 9 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | LEASES The Company has operating lease obligations primarily for our delivery centers and finance lease obligations primarily for vehicles and other equipment. Leases typically have initial terms of two The components of lease cost are as follows: Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Operating lease cost: Operating lease cost $ 5,045 $ 5,487 $ 14,923 $ 16,360 Variable lease cost 787 1,043 2,353 3,244 Total operating lease cost $ 5,832 $ 6,530 $ 17,276 $ 19,604 Finance lease cost: Amortization of right of use assets $ 147 $ 85 $ 361 $ 254 Interest on lease liabilities 64 32 154 75 Total finance lease cost $ 211 $ 117 $ 515 $ 329 The following table presents supplemental balance sheet information related to leases: March 31, June 30, ($000s) 2024 2023 Operating lease assets $ 62,157 $ 70,919 Operating lease liabilities, current 13,073 13,036 Operating lease liabilities, non-current 55,660 64,854 Total operating lease liabilities $ 68,733 $ 77,890 Finance lease assets, net $ 1,339 $ 929 Finance lease liabilities, current 585 361 Finance lease liabilities, non-current 820 600 Total finance lease liabilities $ 1,405 $ 961 The following table presents supplemental cash flow information related to leases: Nine Months Ended ($000s) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities $ 9,907 $ 10,831 Operating cash flows paid for interest portion of finance leases 154 75 Financing cash flows paid for principal portion of finance leases 342 353 The following table presents supplemental noncash information related to leases: Nine Months Ended ($000s) 2024 2023 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 4,684 $ 11,174 Finance leases $ 753 $ 726 Reduction due to reassessment of lease renewal options Right-of-use assets $ (3,656) $ — Operating lease liabilities $ (3,689) $ — March 31, June 30, 2024 2023 Weighted average remaining lease term (in years) Operating leases 5.2 5.7 Finance leases 2.3 2.6 Weighted average discount rate Operating leases 10.3 % 9.2 % Finance leases 21.6 % 13.4 % The following table presents the maturities of our lease liabilities as of March 31, 2024: ($000s) Operating Finance 2024-remainder of year $ 4,951 $ 213 2025 17,692 786 2026 16,340 570 2027 16,114 201 2028 13,257 — Thereafter 22,097 — Total undiscounted lease payments 90,451 1,770 Less: liability accretion (21,718) (365) Total lease liabilities $ 68,733 $ 1,405 |
Leases | LEASES The Company has operating lease obligations primarily for our delivery centers and finance lease obligations primarily for vehicles and other equipment. Leases typically have initial terms of two The components of lease cost are as follows: Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Operating lease cost: Operating lease cost $ 5,045 $ 5,487 $ 14,923 $ 16,360 Variable lease cost 787 1,043 2,353 3,244 Total operating lease cost $ 5,832 $ 6,530 $ 17,276 $ 19,604 Finance lease cost: Amortization of right of use assets $ 147 $ 85 $ 361 $ 254 Interest on lease liabilities 64 32 154 75 Total finance lease cost $ 211 $ 117 $ 515 $ 329 The following table presents supplemental balance sheet information related to leases: March 31, June 30, ($000s) 2024 2023 Operating lease assets $ 62,157 $ 70,919 Operating lease liabilities, current 13,073 13,036 Operating lease liabilities, non-current 55,660 64,854 Total operating lease liabilities $ 68,733 $ 77,890 Finance lease assets, net $ 1,339 $ 929 Finance lease liabilities, current 585 361 Finance lease liabilities, non-current 820 600 Total finance lease liabilities $ 1,405 $ 961 The following table presents supplemental cash flow information related to leases: Nine Months Ended ($000s) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities $ 9,907 $ 10,831 Operating cash flows paid for interest portion of finance leases 154 75 Financing cash flows paid for principal portion of finance leases 342 353 The following table presents supplemental noncash information related to leases: Nine Months Ended ($000s) 2024 2023 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 4,684 $ 11,174 Finance leases $ 753 $ 726 Reduction due to reassessment of lease renewal options Right-of-use assets $ (3,656) $ — Operating lease liabilities $ (3,689) $ — March 31, June 30, 2024 2023 Weighted average remaining lease term (in years) Operating leases 5.2 5.7 Finance leases 2.3 2.6 Weighted average discount rate Operating leases 10.3 % 9.2 % Finance leases 21.6 % 13.4 % The following table presents the maturities of our lease liabilities as of March 31, 2024: ($000s) Operating Finance 2024-remainder of year $ 4,951 $ 213 2025 17,692 786 2026 16,340 570 2027 16,114 201 2028 13,257 — Thereafter 22,097 — Total undiscounted lease payments 90,451 1,770 Less: liability accretion (21,718) (365) Total lease liabilities $ 68,733 $ 1,405 |
Derivatives
Derivatives | 9 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DERIVATIVES Cash flow hedges Interest rate swap In March 2020, the Company entered into a three-year $15 million notional floating to fixed interest rate swap to hedge the interest rate risk on the first $15 million of the balance outstanding under our $80 million revolving credit facility (as amended, the "PNC Credit Facility") with PNC Bank, N.A. ("PNC"). At the time the hedge was executed, all critical terms matched between the hedge and the hedged item. Hedge effectiveness was assessed prospectively at inception, and on an ongoing basis by confirming that the critical terms continue to match. Any hedge ineffectiveness is recorded in interest expense in the consolidated statements of comprehensive income. For the three and nine months ended March 31, 2023, there was no hedge ineffectiveness. The hedge expired in March 2023 and was not replaced. Foreign exchange contracts From time to time, the Company enters into foreign currency exchange contracts, consisting of offsetting foreign exchange option contracts (“collars”), to mitigate foreign exchange fluctuations on the Philippine Peso (“PHP”) within a certain range and on a certain percentage of its PHP operating costs. The collars are designated as cash flow hedges upon inception, in accordance with ASC 815, in order to match the financial results of the hedges with the forecasted transactions. These contracts cover periods commensurate with the expected exposure, generally three The following tables show the notional amount and fair value of our foreign exchange cash flow hedging instruments as of March 31, 2024 and June 30, 2023 : Settlement date Hedged Foreign Notional Fair Value Foreign currency option contracts - liabilities April 8, 2024 through December 19, 2024 PHP 53.50 - 57.60 $ 19,759 Fair value as of June 30, 2023 $ 100 Fair value as of March 31, 2024 $ 95 The fair value of the collars is included in accounts payable and accrued liabilities Changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognized in accumulated other comprehensive income ("AOCI"). Amounts previously recognized in AOCI are reclassified to cost of services in the periods in which the hedged expenses occur. |
Debt
Debt | 9 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt consists of the following: March 31, June 30, ($000s) 2024 2023 Debt PNC Credit Facility $ — $ 52 Finance leases 1,405 961 Total debt $ 1,405 $ 1,013 Less: Current maturities of long-term debt and finance leases (585) (413) Total long-term debt $ 820 $ 600 As of March 31, 2024, the Company had $80.0 million of borrowing available under the PNC Credit Facility based on eligible collateral. The PNC Credit Facility contains certain financial, operating, and other covenants, including, among other things, covenants restricting additional borrowings, paying any dividends and making certain investments. The Company was in compliance with all debt covenants as of March 31, 2024. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company is subject to claims and lawsuits filed in the ordinary course of business. Although management does not believe that any such proceedings will have material adverse effect on its consolidated financial position, results of operations, or cash flows, no assurances to that effect can be given based on the uncertainty of litigation and demands of third parties. The Company records a liability for pending litigation and claims where losses are both probable and can be reasonably estimated. Indemnification |
Warrant
Warrant | 9 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Warrant | WARRANT On November 13, 2017, and as subsequently amended, the Company issued to Amazon.com NV Investment Holdings LLC, a subsidiary of Amazon.com, Inc. (“Amazon”), a 10-year warrant to acquire approximately 1,674,017 common shares (the "warrant shares"), representing 10.0% of our equity on a fully diluted basis at the time of the warrant's issuance. The warrant is exercisable at a price per share of $9.42. The warrant provides for net share settlement, that if elected by the holder, will reduce the number of shares issued upon exercise to reflect the net settlement of the exercise price. The warrant is classified as an equity instrument in accordance with ASU No. 2019-08, which was adopted retroactively on July 1, 2020. The Company determined the grant date fair value of the warrant using the Black-Scholes option pricing model. The warrant shares vest on the satisfaction of specified milestones tied to Amazon’s purchase of services from the Company during a seven-and-a-half-year period ending on June 30, 2024. The vesting is partially accelerated in the event of a reorganization transaction (as defined in the warrant). Amazon is entitled to customary shelf and piggy-back registration rights with respect to the shares issued upon exercise of the warrant. Amazon may not transfer the warrant except to a wholly-owned subsidiary of Amazon. As of March 31, 2024 and June 30, 2023, 1,171,812 and 1,004,410 warrant shares were vested, respectively. To date, the warrant has not been exercised, expired or cancelled. The Company recorded contra revenue of approximately $0.3 million and $0.9 million, respectively, during the three and nine months ended March 31, 2024 and 2023, respectively |
Share Based Compensation
Share Based Compensation | 9 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share Based Compensation | SHARE BASED COMPENSATION Share-based compensation expense The following tables summarize the components of share-based compensation expense recognized in the Company’s consolidated statements of comprehensive income, both by line item and by plan: Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Cost of services $ (62) $ (3) $ 7 $ 380 Selling, general and administrative 528 1,321 2,734 3,593 Total share-based compensation expense $ 466 $ 1,318 $ 2,741 $ 3,973 Three Months Ended Nine Months Ended 2024 2023 2024 2023 Phantom Stock Plans $ (308) $ 7 $ (332) $ 1,150 2018 Restricted Stock Award Plan — — — (7) 2020 Long term Incentive Plan 774 1,311 3,073 2,830 Total share-based compensation expense $ 466 $ 1,318 $ 2,741 $ 3,973 As of March 31, 2024, there was $6.7 million of total unrecognized compensation expense related to non-vested share-based awards, which is expected to be recognized over a weighted-average period of 3.23 years |
Fair Value
Fair Value | 9 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE The fair value hierarchy prioritized the input 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 as follows: Level 1: Quoted prices for identical instruments traded in active markets. Level 2: Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3: Unobservable inputs that cannot be supported by market activity and that are significant to the fair value of the asset, liability, or equity such as the use of certain pricing models, discounted cash flow models and similar techniques that use significant unobservable inputs. The carrying value of our cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, accrued payroll and employee-related liabilities, approximate fair value because of their short-term nature. The Company measures its debt at carrying value including accrued interest, which approximates fair value because of its short-term nature. Derivatives designated as cash flow hedges 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. Phantom stock awards The Company uses the Black-Scholes option pricing model to value our phantom stock awards. All inputs to the model are derived from active market information for identical or similar instruments, including stock price, volatility, and interest rates. The inputs to the valuation pricing models are observable in the market, and as such the phantom stock awards are classified as Level 2 in the fair value hierarchy. The following is a summary of the Company’s fair value measurements on a recurring basis as of March 31, 2024 and June 30, 2023: As of March 31, 2024 Fair Value Measurements Using ($000s) Quoted Prices in Significant Significant Liabilities Cash flow hedge - foreign currency collars, net $ — $ 95 $ — Phantom stock options $ — $ 834 $ — Total liabilities $ — $ 929 $ — As of June 30, 2023 Fair Value Measurements Using ($000s) Quoted Prices in Significant Significant Liabilities Cash flow hedge - foreign currency collars, net $ — $ 100 $ — Phantom stock options $ — $ 1,173 $ — Total liabilities $ — $ 1,273 $ — These balances are included in accounts payable and accrued liabilities and other non-current liabilities in the consolidated balance sheets. There were no transfers between the different hierarchy levels in the three and nine months ended March 31, 2024 and 2023 . |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES In determining its interim provision for income taxes, the Company used an estimated annual effective tax rate, which is based on expected income before taxes, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the period in which they occur and can be a source of variability in the effective tax rate from quarter to quarter. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company records valuation allowances against its deferred tax assets based on whether it is more likely than not that the deferred tax assets will be realized. The Company’s income tax provision includes the results of the Company’s U.S. operations and its various foreign operations including subsidiaries based in the United Kingdom, European Union, Canada, Jamaica, Nicaragua, Pakistan, Senegal, Honduras, and the Philippines. Historically, the Company’s Bermuda-based companies are not subject to income tax as there was no corporate income tax in Bermuda. On December 27, 2023 the Bermuda Corporate Income Tax Act 2023 was passed which provides for a 15% corporate tax rate beginning on or after January 1, 2025 for companies with revenue in excess of 750 million Euros. The Company is evaluating the impact of this legislation, but it does not anticipate that it will have a material impact on the Company’s operations. The Company recorded provision for income taxes of $1.3 million and $3.9 million in the three and nine months ended March 31, 2024, respectively. The effective tax rate was 11.0% and 14.2% for the three and nine months ended March 31, 2024, respectively. The Company recorded provision for income taxes of $1.9 million and $4.9 million in the three and nine months ended March 31, 2023, respectively. The effective tax rate was 14.2% and 15.4% for the three and nine months ended March 31, 2023, respectively. The changes in effective tax rates between these periods was primarily attributable to changes in revenue mix across our taxable jurisdictions and discrete items recorded in the quarter. The difference between the effective tax rate and the 21% federal statutory rate in the three and nine months ended March 31, 2024 was primarily due to "Tax Holidays" in certain countries in which we operate and the distribution of taxable income in countries with differing tax rates. We have been granted Tax Holidays as an incentive to attract foreign investment by the governments of Nicaragua, Pakistan, Honduras, Jamaica, and certain qualifying locations in the Philippines. Generally, a Tax Holiday is an agreement between us and a foreign government under which we receive certain tax benefits in that country. The aggregate reduction in income tax expense due to the above Tax Holidays were $0.8 million and $3.4 million for the three and nine months ended March 31, 2024, respectively. The aggregate reduction in income tax expense per diluted share was $0.04 and $0.18 for the three and nine months ended March 31, 2024, respectively. The aggregate reduction in income tax expense due to the above Tax Holidays were $1.0 million and $2.8 million for the three and nine months ended March 31, 2023, respectively. The aggregate reduction in income tax expense per diluted share was $0.05 and $0.15 for the three and nine months ended March 31, 2023, respectively. As of March 31, 2024, we had no unrecognized tax positions and do not expect changes to our uncertain tax positions within the next 12 months. In April 2024, one of our foreign jurisdictions received an assessment relating to a fiscal year 2020 audit. Based on the Company's analysis, we have not recorded any of the assessment amount as an unrecognized tax benefit liability as management has determined that the entire amount is contestable and subject to dispute. Management is challenging the assessment. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY AOCI The following table presents changes by component for the three months ended March 31, 2024 and 2023 : ($000s) Foreign Derivative Defined Total Balance as of December 31, 2022 $ (5,149) $ (86) $ 103 $ (5,132) Foreign currency translation (1,039) — — (1,039) Unrealized gain on cash flow hedges — 188 — 188 Reclassifications to earnings — 28 — 28 Balance as of March 31, 2023 $ (6,188) $ 130 $ 103 $ (5,955) ($000s) Foreign Derivative Defined Total Balance as of December 31, 2023 $ (6,282) $ 77 $ 72 $ (6,133) Foreign currency translation (288) — — (288) Unrealized loss on cash flow hedges — (165) — (165) Reclassifications to earnings — 34 — 34 Balance as of March 31, 2024 $ (6,570) $ (54) $ 72 $ (6,552) The following table presents changes by component for the nine months ended March 31, 2024 and 2023 : ($000s) Foreign Derivative Defined Total Balance as of June 30, 2022 $ (4,026) $ (639) $ 103 $ (4,562) Foreign currency translation (2,162) — — (2,162) Unrealized loss on cash flow hedges — (299) — (299) Reclassifications to earnings — 1,068 — 1,068 Balance as of March 31, 2023 $ (6,188) $ 130 $ 103 $ (5,955) ($000s) Foreign Derivative Defined Total Balance as of June 30, 2023 $ (6,260) $ (124) $ 72 $ (6,312) Foreign currency translation (310) — — (310) Unrealized loss on cash flow hedges — (35) — (35) Reclassifications to earnings — 105 — 105 Balance as of March 31, 2024 $ (6,570) $ (54) $ 72 $ (6,552) Share buyback On September 18, 2023, the Company announced that the board of directors (the "Board") had authorized a share repurchase program under which the Company may repurchase up to $30 million of its shares over the next six months beginning September 18, 2023 (the “Share Repurchase Program”). During the three and nine months ended March 31, 2024, we repurchased 501,549 and 1,124,876 shares of our common shares under the Share Repurchase Program for $8.1 million and $18.6 million, respectively, which the Company funded with available cash. The Share Repurchase Program expired on March 18, 2024. During the nine months ended March 31, 2023, we repurchased 17,558 shares of our common shares under our previous share repurchase program for $0.3 million. The previous share repurchase program was announced in December 2021 and expired a year later. |
Weighted Average Share Counts
Weighted Average Share Counts | 9 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Weighted Average Share Counts | WEIGHTED AVERAGE SHARE COUNTS The following table sets forth the components of the computation from basic to diluted earnings per share for net income for the three and nine months ended March 31, 2024 and 2023: Three Months Ended Nine Months Ended (000s) 2024 2023 2024 2023 Shares used in basic earnings per share calculation 17,468 18,230 17,880 18,179 Effect of dilutive securities: Employee share-based compensation 70 293 92 210 Warrant 498 542 486 472 Total effects of dilutive securities 568 835 578 682 Shares used in dilutive earnings per share calculation 18,036 19,065 18,458 18,861 Shares considered anti-dilutive using the treasury method (565) (272) (555) (354) |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS |
Investment in Joint Venture
Investment in Joint Venture | 9 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Joint Venture | INVESTMENT IN JOINT VENTURE The Company has an investment in Lake Ball, LLC to procure and sell commercial leads for its customers. The Company’s ownership interest is 47.5% and is accounted for under the equity method. The Company’s investment of $0.4 million at March 31, 2024 and June 30, 2023, respectively, is included in other non-current assets in the consolidated balance sheets, while net earnings from the joint venture is included in selling, general and administrative expense in the consolidated statements of comprehensive income. The table below presents our investment in the joint venture : Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Beginning balance $ 370 $ 380 $ 372 $ 382 Dividends received (322) (280) (849) (607) Share of profit 382 276 907 601 Ending balance $ 430 $ 376 $ 430 $ 376 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 10,310 | $ 11,279 | $ 23,810 | $ 27,072 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Mar. 31, 2024 shares | Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Ms. Christy O'Connor [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On March 13, 2024, Ms. Christy O'Connor, the Company's Chief Legal Officer and Assistant Secretary, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 10,000 shares of the Company's common stock between June 12, 2024 and February 21, 2025, subject to such shares reaching certain price points. | |
Name | Ms. Christy O'Connor | |
Title | Chief Legal Officer and Assistant Secretary | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | March 13, 2024 | |
Arrangement Duration | 254 days | |
Aggregate Available | 10,000 | 10,000 |
Mr. Robert Dechant [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On March 15, 2024, Mr. Robert Dechant, the Company's Chief Executive Officer, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 20,000 shares of the Company's common stock between June 14, 2024 and March 14, 2025, subject to such shares reaching certain price points. | |
Name | Mr. Robert Dechant | |
Title | Chief Executive Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | March 15, 2024 | |
Arrangement Duration | 273 days | |
Aggregate Available | 20,000 | 20,000 |
Mr. Paul Inson [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On March 15, 2024, Mr. Paul Inson, the Company's Chief People Officer, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 32,785 shares of the Company's common stock between June 14, 2024 and February 23, 2025, subject to such shares reaching certain price points. | |
Name | Mr. Paul Inson | |
Title | Chief People Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | March 15, 2024 | |
Arrangement Duration | 254 days | |
Aggregate Available | 32,785 | 32,785 |
Mr. Mohammed Khaishgi, Feb 2024 Plan [Member] | Mr. Mohammed Khaishgi [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On February 22, 2024, Mr. Mohammed Khaishgi, the Company's Chairman of the Board, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 300,000 shares of the Company's common stock between May 23, 2024 and February 21, 2025, subject to such shares reaching certain price points. | |
Name | Mr. Mohammed Khaishgi | |
Title | Chairman of the Board | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | February 22, 2024 | |
Aggregate Available | 300,000 | 300,000 |
Mr. Mohammed Khaishgi, Feb 2024 Plan [Member] | Mr. Mohammed Khaishg [Member] | ||
Trading Arrangements, by Individual | ||
Arrangement Duration | 274 days | |
Allibhoy Khaishgi Family Foundation, Feb 2024 Plan [Member] | Mr. Mohammed Khaishgi [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On February 22, 2024, the Allibhoy Khaishgi Family Foundation, represented by its President, Mr. Mohammed Khaishgi, the Company's Chairman of the Board, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 135,000 shares of the Company's common stock between May 23, 2024 and February 21, 2025, subject to such shares reaching certain price points. | |
Name | Mr. Mohammed Khaishgi | |
Title | Chairman of the Board | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | February 22, 2024 | |
Aggregate Available | 135,000 | 135,000 |
Allibhoy Khaishgi Family Foundation, Feb 2024 Plan [Member] | Mr. Mohammed Khaishg [Member] | ||
Trading Arrangements, by Individual | ||
Arrangement Duration | 274 days | |
Mr. Shuja Keen, March 2024 Plan [Member] | Mr. Shuja Keen [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On March 18, 2024, Mr. Shuja Keen, a Director of the Company, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 10,020 shares of the Company's common stock between June 17, 2024 and February 18, 2025, subject to such shares reaching a certain price point. | |
Name | Mr. Shuja Keen | |
Title | Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | March 18, 2024 | |
Arrangement Duration | 246 days | |
Aggregate Available | 10,020 | 10,020 |
Adia Global LLC, March 2024 Plan [Member] | Mr. Shuja Keen [Member] | ||
Trading Arrangements, by Individual | ||
Name | Mr. Shuja Keen | |
Title | Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | March 18, 2024 | |
Arrangement Duration | 246 days | |
Aggregate Available | 91,110 | 91,110 |
Adia Global LLC, March 2024 Plan [Member] | Mr. Shuja Keen One [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On March 18, 2024, Adia Global LLC, a limited liability company wholly owned by Mr. Shuja Keen, a Director of the Company, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 91,110 shares of the Company's common stock between June 17, 2024 and February 18, 2025, subject to such shares reaching certain price points. |
Overview and Summary of Signi_2
Overview and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operating segments | An operating segment is defined as a component of a company for which separate financial information is available and which is regularly evaluated by the chief operating decision maker (“CODM”) for the purpose of making decisions regarding resource allocation and performance assessment. The Company’s CODM is the chief executive officer (“CEO”). The Company’s CODM reviews consolidated financial results to make decisions, allocate resources and assess performance. Therefore, the Company has determined that it operates in a single operating and reportable segment. |
Basis of presentation and principles of consolidation | The Company’s interim consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and include the financial results of all wholly-owned subsidiaries. When the Company does not have majority ownership in an entity but exerts significant influence over that entity, the Company accounts for the entity under the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation. These unaudited consolidated financial statements and accompanying notes have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (the “Annual Report”) as filed with the SEC. There have been no changes to the Company’s significant accounting policies described in the Annual Report that have had a material impact on the Company’s consolidated financial statements and related notes. In the opinion of the Company, these unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of March 31, 2024, its results of operations, comprehensive income, and shareholders’ equity for the three and nine months ended March 31, 2024 |
Basis of presentation and principles of consolidation | The Company’s interim consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and include the financial results of all wholly-owned subsidiaries. When the Company does not have majority ownership in an entity but exerts significant influence over that entity, the Company accounts for the entity under the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation. These unaudited consolidated financial statements and accompanying notes have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (the “Annual Report”) as filed with the SEC. There have been no changes to the Company’s significant accounting policies described in the Annual Report that have had a material impact on the Company’s consolidated financial statements and related notes. In the opinion of the Company, these unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of March 31, 2024, its results of operations, comprehensive income, and shareholders’ equity for the three and nine months ended March 31, 2024 |
Use of estimates | The preparation of 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 useful lives for property and equipment; impairment of long-lived assets, operating lease assets and liabilities, goodwill, and other intangible assets; allowance for credit losses; valuation allowances for deferred tax assets and other receivables; fair value of share-based compensation, warrants, and derivatives, and legal provisions. The Company bases its estimates on historical experience and other assumptions it believes are reasonable, including the use of outside experts as necessary, and updates these estimates on an ongoing basis and as new events occur, more experience is acquired and/or more information is obtained. Actual results could differ materially from these estimates. |
Concentration of credit risk | The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial. The Company regularly monitors its credit risk to mitigate losses. The Company evaluates the creditworthiness of its clients prior to and throughout the life of the client relationship. The Company does not believe it is exposed to more than a nominal amount of credit risk in its derivative instruments as all of its counterparties are investment-grade financial institutions. |
Property and equipment | Property and equipment and assets leased under financing leases are carried at cost at the acquisition date and are depreciated using the straight-line method over their estimated useful lives. Property and equipment assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is assessed by a comparison of the carrying amount of the asset to the estimated future undiscounted net cash flows expected to be generated by the asset. If estimated future undiscounted net cash flows are less than the carrying value of the asset, an impairment loss is recognized to the extent its carrying value exceeds its estimated fair value. During quarter ended March 31, 2024 , we determined that the estimated fair value for certain assets at two of our delivery locations no longer exceeded their carrying value. The fair value of these assets was based on various assumptions including our ability to redeploy and utilize the assets at other sites. We recognized impairment losses related to leasehold improvements, furniture & fixtures, and computer equipment of $1.3 million during both the three and nine months ended March 31, 2024, which is included in selling, general and administrative expense in the consolidated statements of comprehensive income. There were no impairment closses recognized during the three and nine months ended March 31, 2023 |
Leases | The Company determines whether an arrangement contains a lease at inception in accordance with the provisions of Accounting Standards Codification (“ASC”) 842, Leases . Operating leases are included in operating lease assets and current and non-current operating lease liabilities, and assets leased under finance leases are included in property and equipment and current and long-term debt in the consolidated balance sheets. |
Share-based compensation plans | The Company accounts for its share-based awards in accordance with provisions of ASC 718, Compensation - Stock Compensation . The Company calculates the fair value of option awards using the Black-Scholes model. For equity-classified awards, total compensation cost is based on the grant date fair value. For liability-classified awards, total compensation cost is based on the fair value of the award on the date the award is granted and is subsequently re-measured at each reporting date until settlement. |
Share repurchase programs | The board of directors may authorize share repurchases of the Company’s common shares. Purchases made pursuant to these authorizations may be carried out through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on the market conditions and in accordance with applicable rules and regulations, at times and in such amounts as the Company deems appropriate. Shares repurchased under such authorizations are held in treasury for general corporate purposes, including issuances under various employee share-based award plans. When Company shares are repurchased, the amount of the consideration paid (including directly attributable costs, net of any tax effects) is recognized as a deduction of additional paid in capital. Repurchased shares are classified as treasury shares and are presented as a deduction from total equity. When treasury shares are subsequently sold or reissued, the amount received is recognized as an increase in additional paid in capital, and any resulting surplus or deficit on the transaction is reclassified to accumulated deficit. |
Cloud Computing Software Implementation Costs | The Company incurs costs to implement cloud computing arrangements that are hosted by a third-party vendor. In accordance with ASC 350-40, Goodwill and Other, Internal-Use Software, |
Emerging Growth Company | The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Accordingly, the Company has the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies pursuant to Section 13(a) of the Exchange Act. The Company has elected to use the extended transition period until we are no longer an emerging growth company or until we choose to opt out of the extended transition period affirmatively and irrevocably. |
Recently Issued Accounting Pronouncements | In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The amendments in ASU No. 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of the new guidance on the disclosures to our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign), and (3) the income tax expense or benefit from continuing operations (separated by federal, state and foreign). This update also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The amendments in ASU No. 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of the new guidance on the disclosures to our consolidated financial statements. |
Revenue from Contracts with Customers | The Company recognizes revenues for services for which control has transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring the promised services. This process involves identifying the customer contract, determining the performance obligations in the contract, determining the transaction price, allocating the transaction price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it (a) provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and (b) is separately identified in the contract. The Company considers a performance obligation satisfied as it provides services to a customer, meaning the customer has the ability to direct the use and obtain the benefit of the service. Revenues from contact center services, which consist of customer service, technical support and other value-added outsourced back-office services, are recognized as the services are performed on the basis of the number of billable minutes or hours, contractual rates, and other contractually agreed metrics, if applicable. Certain of our client contracts include bonus and penalty provisions. Revenues related to training that occurs upon commencement of a new client contract or statement of work are deferred and recognized on a straight-line basis over the estimated life of the client program, as it is not considered to have a standalone value to the customer. The related expenses are expensed as incurred. Revenues are recognized over time as performance obligations are satisfied and in the period in which the Company has a right to invoice, net of discounts, incentives, and/or penalties as per contractual terms. Bonuses and penalties accrue for the current billing period and do not depend on future performance. In some cases, we may estimate these bonuses or penalties using the “most likely amount” method based on actual data and historical experience. Revenues from digital services are recognized at a point in time upon the successful consumer activation or purchase of clients’ services. We utilize third parties in the satisfaction of this performance obligation; however, because we retain control over these third parties and are solely responsible for the risk and reward associated with this performance obligation, we have determined that we are the principal in these transactions and therefore recognize revenue on a gross basis. Revenues from CX software-as-a-service products are recognized over time based on the term of the subscription. Set-up fees to customize the customer experience solution for client’s specific needs are deferred and recognized on a straight-line basis over the term of the subscription. Revenues related to additional consulting services are recognized over the period as the related services are performed on a per hour basis. All of our contracts include the right to invoice for services on a monthly basis. None of our contracts include significant termination penalties, and generally may be terminated for convenience at any time with a short notice period (generally 30 to 120 days). The Company generally does not incur significant upfront costs to fulfill or obtain a contract that would qualify for capitalization under ASC 606, Revenue from Contracts with Customers |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Breakdown of Revenues by Geographical Location | The Company generated approximately 97% of its revenue from clients based in the United States for both the three and nine months ended March 31, 2024, as follows: Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Revenue United States $ 122,822 $ 128,184 $ 372,612 $ 387,694 Other countries 3,973 3,373 11,426 10,993 Total $ 126,795 $ 131,557 $ 384,038 $ 398,687 The following table presents the breakdown of the Company’s revenues by geographical location, based on where the services are provided: Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Revenue Onshore (United States) $ 30,748 $ 37,264 $ 92,195 $ 112,864 Offshore (Philippines, Pakistan) 60,840 56,242 183,109 166,690 Nearshore (Jamaica, Nicaragua, Honduras) 35,207 38,051 108,734 119,133 Total $ 126,795 $ 131,557 $ 384,038 $ 398,687 |
Schedule of Revenue Disaggregated by Pattern of Revenue Recognition | The following table presents the breakdown of the Company’s revenue by pattern of revenue recognition: Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Pattern of Revenue recognition Services transferred over time $ 120,029 $ 124,001 $ 360,168 $ 373,869 Services transferred at a point in time 6,766 7,556 23,870 24,818 Total $ 126,795 $ 131,557 $ 384,038 $ 398,687 |
Schedule of Movement in Deferred Revenue | The movement in the Company's deferred revenue is as follows: Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Beginning balance $ 8,097 $ 9,688 $ 7,796 $ 12,593 Revenue recognized (2,368) (1,840) (7,301) (9,789) Revenue deferred 969 2,024 6,203 7,068 Ending balance $ 6,698 $ 9,872 $ 6,698 $ 9,872 |
Accounts Receivable and Signi_2
Accounts Receivable and Significant Clients (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net in the accompanying consolidated balance sheets consists of the following: March 31, June 30, ($000s) 2024 2023 Accounts receivable $ 103,424 $ 86,484 Less: Allowance for credit losses (107) (120) Accounts receivable, net $ 103,317 $ 86,364 |
Schedule of Activity in Allowance for Credit Losses | Activity in the Company’s allowance for credit losses consists of the following: Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Beginning balance $ 117 $ 424 $ 120 $ 1,290 Provision for credit losses 69 17 93 155 Reversal of provision for credit losses (13) (29) (31) (50) Uncollectible receivables written off (67) (4) (78) (955) Effect of foreign exchange 1 (37) 3 (69) Ending balance $ 107 $ 371 $ 107 $ 371 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Lease Cost and Supplemental Cash Flow Information | The components of lease cost are as follows: Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Operating lease cost: Operating lease cost $ 5,045 $ 5,487 $ 14,923 $ 16,360 Variable lease cost 787 1,043 2,353 3,244 Total operating lease cost $ 5,832 $ 6,530 $ 17,276 $ 19,604 Finance lease cost: Amortization of right of use assets $ 147 $ 85 $ 361 $ 254 Interest on lease liabilities 64 32 154 75 Total finance lease cost $ 211 $ 117 $ 515 $ 329 The following table presents supplemental cash flow information related to leases: Nine Months Ended ($000s) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities $ 9,907 $ 10,831 Operating cash flows paid for interest portion of finance leases 154 75 Financing cash flows paid for principal portion of finance leases 342 353 The following table presents supplemental noncash information related to leases: Nine Months Ended ($000s) 2024 2023 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 4,684 $ 11,174 Finance leases $ 753 $ 726 Reduction due to reassessment of lease renewal options Right-of-use assets $ (3,656) $ — Operating lease liabilities $ (3,689) $ — March 31, June 30, 2024 2023 Weighted average remaining lease term (in years) Operating leases 5.2 5.7 Finance leases 2.3 2.6 Weighted average discount rate Operating leases 10.3 % 9.2 % Finance leases 21.6 % 13.4 % |
Schedule of Assets and Liabilities, Leases | The following table presents supplemental balance sheet information related to leases: March 31, June 30, ($000s) 2024 2023 Operating lease assets $ 62,157 $ 70,919 Operating lease liabilities, current 13,073 13,036 Operating lease liabilities, non-current 55,660 64,854 Total operating lease liabilities $ 68,733 $ 77,890 Finance lease assets, net $ 1,339 $ 929 Finance lease liabilities, current 585 361 Finance lease liabilities, non-current 820 600 Total finance lease liabilities $ 1,405 $ 961 |
Schedule of Operating Lease Maturity | The following table presents the maturities of our lease liabilities as of March 31, 2024: ($000s) Operating Finance 2024-remainder of year $ 4,951 $ 213 2025 17,692 786 2026 16,340 570 2027 16,114 201 2028 13,257 — Thereafter 22,097 — Total undiscounted lease payments 90,451 1,770 Less: liability accretion (21,718) (365) Total lease liabilities $ 68,733 $ 1,405 |
Schedule of Finance Lease Maturity | The following table presents the maturities of our lease liabilities as of March 31, 2024: ($000s) Operating Finance 2024-remainder of year $ 4,951 $ 213 2025 17,692 786 2026 16,340 570 2027 16,114 201 2028 13,257 — Thereafter 22,097 — Total undiscounted lease payments 90,451 1,770 Less: liability accretion (21,718) (365) Total lease liabilities $ 68,733 $ 1,405 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following tables show the notional amount and fair value of our foreign exchange cash flow hedging instruments as of March 31, 2024 and June 30, 2023 : Settlement date Hedged Foreign Notional Fair Value Foreign currency option contracts - liabilities April 8, 2024 through December 19, 2024 PHP 53.50 - 57.60 $ 19,759 Fair value as of June 30, 2023 $ 100 Fair value as of March 31, 2024 $ 95 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of the following: March 31, June 30, ($000s) 2024 2023 Debt PNC Credit Facility $ — $ 52 Finance leases 1,405 961 Total debt $ 1,405 $ 1,013 Less: Current maturities of long-term debt and finance leases (585) (413) Total long-term debt $ 820 $ 600 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Components of Share-Based Compensation Expense | The following tables summarize the components of share-based compensation expense recognized in the Company’s consolidated statements of comprehensive income, both by line item and by plan: Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Cost of services $ (62) $ (3) $ 7 $ 380 Selling, general and administrative 528 1,321 2,734 3,593 Total share-based compensation expense $ 466 $ 1,318 $ 2,741 $ 3,973 Three Months Ended Nine Months Ended 2024 2023 2024 2023 Phantom Stock Plans $ (308) $ 7 $ (332) $ 1,150 2018 Restricted Stock Award Plan — — — (7) 2020 Long term Incentive Plan 774 1,311 3,073 2,830 Total share-based compensation expense $ 466 $ 1,318 $ 2,741 $ 3,973 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements on a Recurring Basis | The following is a summary of the Company’s fair value measurements on a recurring basis as of March 31, 2024 and June 30, 2023: As of March 31, 2024 Fair Value Measurements Using ($000s) Quoted Prices in Significant Significant Liabilities Cash flow hedge - foreign currency collars, net $ — $ 95 $ — Phantom stock options $ — $ 834 $ — Total liabilities $ — $ 929 $ — As of June 30, 2023 Fair Value Measurements Using ($000s) Quoted Prices in Significant Significant Liabilities Cash flow hedge - foreign currency collars, net $ — $ 100 $ — Phantom stock options $ — $ 1,173 $ — Total liabilities $ — $ 1,273 $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component | The following table presents changes by component for the three months ended March 31, 2024 and 2023 : ($000s) Foreign Derivative Defined Total Balance as of December 31, 2022 $ (5,149) $ (86) $ 103 $ (5,132) Foreign currency translation (1,039) — — (1,039) Unrealized gain on cash flow hedges — 188 — 188 Reclassifications to earnings — 28 — 28 Balance as of March 31, 2023 $ (6,188) $ 130 $ 103 $ (5,955) ($000s) Foreign Derivative Defined Total Balance as of December 31, 2023 $ (6,282) $ 77 $ 72 $ (6,133) Foreign currency translation (288) — — (288) Unrealized loss on cash flow hedges — (165) — (165) Reclassifications to earnings — 34 — 34 Balance as of March 31, 2024 $ (6,570) $ (54) $ 72 $ (6,552) The following table presents changes by component for the nine months ended March 31, 2024 and 2023 : ($000s) Foreign Derivative Defined Total Balance as of June 30, 2022 $ (4,026) $ (639) $ 103 $ (4,562) Foreign currency translation (2,162) — — (2,162) Unrealized loss on cash flow hedges — (299) — (299) Reclassifications to earnings — 1,068 — 1,068 Balance as of March 31, 2023 $ (6,188) $ 130 $ 103 $ (5,955) ($000s) Foreign Derivative Defined Total Balance as of June 30, 2023 $ (6,260) $ (124) $ 72 $ (6,312) Foreign currency translation (310) — — (310) Unrealized loss on cash flow hedges — (35) — (35) Reclassifications to earnings — 105 — 105 Balance as of March 31, 2024 $ (6,570) $ (54) $ 72 $ (6,552) |
Weighted Average Share Counts (
Weighted Average Share Counts (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Components of Computation from Basic to Diluted Earnings Per Share | The following table sets forth the components of the computation from basic to diluted earnings per share for net income for the three and nine months ended March 31, 2024 and 2023: Three Months Ended Nine Months Ended (000s) 2024 2023 2024 2023 Shares used in basic earnings per share calculation 17,468 18,230 17,880 18,179 Effect of dilutive securities: Employee share-based compensation 70 293 92 210 Warrant 498 542 486 472 Total effects of dilutive securities 568 835 578 682 Shares used in dilutive earnings per share calculation 18,036 19,065 18,458 18,861 Shares considered anti-dilutive using the treasury method (565) (272) (555) (354) |
Investment in Joint Venture (Ta
Investment in Joint Venture (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Financial Information for Joint Venture | The table below presents our investment in the joint venture : Three Months Ended Nine Months Ended ($000s) 2024 2023 2024 2023 Beginning balance $ 370 $ 380 $ 372 $ 382 Dividends received (322) (280) (849) (607) Share of profit 382 276 907 601 Ending balance $ 430 $ 376 $ 430 $ 376 |
Overview and Summary of Signi_3
Overview and Summary of Significant Accounting Policies - (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 USD ($) deliveryLocation | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Number of delivery locations with impairment charges | deliveryLocation | 2 | |||
Impairment loss | $ 1,300 | $ 0 | $ 1,300 | $ 0 |
Capitalized cost | 1,200 | $ 0 | 2,400 | $ 0 |
Severance costs | 1,500 | 1,500 | ||
Accrued severance | 1,000 | $ 1,000 | ||
Number of operating segments | segment | 1 | |||
Number of reportable segments | segment | 1 | |||
Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | 1,300 | $ 1,300 | ||
Cost of services | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | $ 200 | $ 200 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) | Mar. 31, 2024 |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Notice period for contract termination | 30 days |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Notice period for contract termination | 120 days |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Breakdown of Revenues by Geographical Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 126,795 | $ 131,557 | $ 384,038 | $ 398,687 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 122,822 | 128,184 | $ 372,612 | 387,694 |
United States | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenues | 97% | 97% | ||
Other countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 3,973 | 3,373 | $ 11,426 | 10,993 |
Onshore (United States) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 30,748 | 37,264 | 92,195 | 112,864 |
Offshore (Philippines, Pakistan) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 60,840 | 56,242 | 183,109 | 166,690 |
Nearshore (Jamaica, Nicaragua, Honduras) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 35,207 | $ 38,051 | $ 108,734 | $ 119,133 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Revenue Disaggregated by Pattern of Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 126,795 | $ 131,557 | $ 384,038 | $ 398,687 |
Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 120,029 | 124,001 | 360,168 | 373,869 |
Services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 6,766 | $ 7,556 | $ 23,870 | $ 24,818 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Movement in Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Contract With Customer, Liability [Roll Forward] | ||||
Beginning balance | $ 8,097 | $ 9,688 | $ 7,796 | $ 12,593 |
Revenue recognized | (2,368) | (1,840) | (7,301) | (9,789) |
Revenue deferred | 969 | 2,024 | 6,203 | 7,068 |
Ending balance | $ 6,698 | $ 9,872 | $ 6,698 | $ 9,872 |
Accounts Receivable and Signi_3
Accounts Receivable and Significant Clients - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Receivables [Abstract] | ||||||
Accounts receivable | $ 103,424 | $ 86,484 | ||||
Less: Allowance for credit losses | (107) | $ (117) | (120) | $ (371) | $ (424) | $ (1,290) |
Accounts receivable, net | $ 103,317 | $ 86,364 |
Accounts Receivable and Signi_4
Accounts Receivable and Significant Clients - Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 117 | $ 424 | $ 120 | $ 1,290 |
Provision for credit losses | 69 | 17 | 93 | 155 |
Reversal of provision for credit losses | (13) | (29) | (31) | (50) |
Uncollectible receivables written off | (67) | (4) | (78) | (955) |
Effect of foreign exchange | 1 | (37) | 3 | (69) |
Ending balance | $ 107 | $ 371 | $ 107 | $ 371 |
Accounts Receivable and Signi_5
Accounts Receivable and Significant Clients - Narrative (Details) | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Client 1 | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Percentage of revenues | 12.80% | 13% |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 31, 2024 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease term of contract | 2 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease term of contract | 15 years |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||||
Operating lease cost | $ 5,045 | $ 5,487 | $ 14,923 | $ 16,360 |
Variable lease cost | 787 | 1,043 | 2,353 | 3,244 |
Total operating lease cost | 5,832 | 6,530 | 17,276 | 19,604 |
Amortization of right of use assets | 147 | 85 | 361 | 254 |
Interest on lease liabilities | 64 | 32 | 154 | 75 |
Total finance lease cost | $ 211 | $ 117 | $ 515 | $ 329 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Leases [Abstract] | ||
Operating lease assets | $ 62,157 | $ 70,919 |
Operating lease liabilities, current | 13,073 | 13,036 |
Operating lease liabilities, non-current | 55,660 | 64,854 |
Total operating lease liabilities | 68,733 | 77,890 |
Finance lease assets, net | 1,339 | 929 |
Finance lease liabilities, current | 585 | 361 |
Finance lease liabilities, non-current | 820 | 600 |
Total lease liabilities | $ 1,405 | $ 961 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities | $ 9,907 | $ 10,831 | |
Operating cash flows paid for interest portion of finance leases | 154 | 75 | |
Financing cash flows paid for principal portion of finance leases | 342 | 353 | |
Right-of-use assets obtained in exchange for lease obligations | |||
Operating leases | 4,684 | 11,174 | |
Finance leases | 753 | 726 | |
Reduction due to reassessment of lease renewal options | |||
Right-of-use assets | (3,656) | 0 | |
Operating lease liabilities | $ (3,689) | $ 0 | |
Weighted average remaining lease term (in years) | |||
Operating leases | 5 years 2 months 12 days | 5 years 8 months 12 days | |
Finance leases | 2 years 3 months 18 days | 2 years 7 months 6 days | |
Weighted average discount rate | |||
Operating leases | 10.30% | 9.20% | |
Finance leases | 21.60% | 13.40% |
Leases - Maturities of Operatin
Leases - Maturities of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Operating Leases | ||
2024-remainder of year | $ 4,951 | |
2025 | 17,692 | |
2026 | 16,340 | |
2027 | 16,114 | |
2028 | 13,257 | |
Thereafter | 22,097 | |
Total undiscounted lease payments | 90,451 | |
Less: liability accretion | (21,718) | |
Total lease liabilities | 68,733 | $ 77,890 |
Finance Leases | ||
2024-remainder of year | 213 | |
2025 | 786 | |
2026 | 570 | |
2027 | 201 | |
2028 | 0 | |
Thereafter | 0 | |
Total undiscounted lease payments | 1,770 | |
Less: liability accretion | (365) | |
Total lease liabilities | $ 1,405 | $ 961 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable and accrued liabilities | ||
Revolving Credit Facility | PNC Credit Facility | PNC Credit Facility | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Term of long term debt | 3 years | ||
Maximum borrowing capacity | $ 80,000 | ||
Interest Rate Swap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 15,000 | ||
Foreign Exchange Contract | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 19,759 | ||
Minimum | Foreign Exchange Contract | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Term of contract | 3 months | ||
Maximum | Foreign Exchange Contract | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Term of contract | 12 months |
Derivatives - Fair Value Cash F
Derivatives - Fair Value Cash Flow Hedging (Details) - Foreign Exchange Contract $ in Thousands | Mar. 31, 2024 USD ($) | Jun. 30, 2023 USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 19,759 | |
Fair value, liability | $ 95 | $ 100 |
Minimum | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency rate | 53.50 | |
Maximum | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency rate | 57.60 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Schedule of Debt [Line Items] | ||
Finance leases | $ 1,405 | $ 961 |
Total debt | 1,405 | 1,013 |
Less: Current maturities of long-term debt and finance leases | (585) | (413) |
Total long-term debt | 820 | 600 |
PNC Credit Facility | Revolving Credit Facility | ||
Schedule of Debt [Line Items] | ||
Long-Term Debt | $ 0 | $ 52 |
Debt - Narrative (Details)
Debt - Narrative (Details) - Revolving Credit Facility - PNC Credit Facility - USD ($) $ in Millions | May 03, 2024 | Mar. 31, 2024 |
Schedule of Debt [Line Items] | ||
Borrowing available | $ 80 | |
Subsequent Event | ||
Schedule of Debt [Line Items] | ||
Maximum value of contract assignments | $ 175 |
Warrant - Narrative (Details)
Warrant - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | Nov. 13, 2017 | |
Equity [Abstract] | ||||||
Term of warrants outstanding | 10 years | |||||
Number of shares called by warrants (in shares) | 1,674,017 | |||||
Percent of fully diluted equity represented | 10% | |||||
Exercise price per share (in dollars per share) | $ 9.42 | |||||
Vesting period | 7 years 6 months | |||||
Number of warrants vested (in shares) | 1,171,812 | 1,171,812 | 1,004,410 | |||
Warrant contra revenue | $ 300 | $ 300 | $ 893 | $ 856 |
Share Based Compensation - Shar
Share Based Compensation - Share Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 466 | $ 1,318 | $ 2,741 | $ 3,973 |
Phantom Stock Plans | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | (308) | 7 | (332) | 1,150 |
2018 Restricted Stock Award Plan | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 0 | 0 | 0 | (7) |
2020 Long term Incentive Plan | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 774 | 1,311 | 3,073 | 2,830 |
Cost of services | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | (62) | (3) | 7 | 380 |
Selling, general and administrative | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 528 | $ 1,321 | $ 2,734 | $ 3,593 |
Share Based Compensation - Narr
Share Based Compensation - Narrative (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2024 USD ($) | |
Share-Based Payment Arrangement [Abstract] | |
Unrecognized compensation expense | $ 6.7 |
Weighted average period | 3 years 2 months 23 days |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash flow hedge - foreign currency collars, net | $ 0 | $ 0 |
Liabilities, fair value disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash flow hedge - foreign currency collars, net | 95 | 100 |
Liabilities, fair value disclosure | 929 | 1,273 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash flow hedge - foreign currency collars, net | 0 | 0 |
Liabilities, fair value disclosure | 0 | 0 |
Phantom stock options | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Phantom stock options | 0 | 0 |
Phantom stock options | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Phantom stock options | 834 | 1,173 |
Phantom stock options | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Phantom stock options | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 1,279 | $ 1,872 | $ 3,940 | $ 4,938 |
Effective income tax rate reconciliation, percent | 11% | 14.20% | 14.20% | 15.40% |
Income tax holiday, aggregate dollar amount | $ 800 | $ 1,000 | $ 3,400 | $ 2,800 |
Reduction in income tax expense (in dollars per share) | $ 0.04 | $ 0.05 | $ 0.18 | $ 0.15 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in AOCI by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | $ 156,113 | $ 131,723 | $ 149,964 | $ 113,459 |
Other comprehensive income (loss) | (419) | (823) | (240) | (1,393) |
Balance, end of period | 159,311 | 144,368 | 159,311 | 144,368 |
Accumulated Other Comprehensive Income / (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (6,133) | (5,132) | (6,312) | (4,562) |
Balance, end of period | (6,552) | (5,955) | (6,552) | (5,955) |
Foreign Currency Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (6,282) | (5,149) | (6,260) | (4,026) |
Other comprehensive income (loss) | (288) | (1,039) | (310) | (2,162) |
Balance, end of period | (6,570) | (6,188) | (6,570) | (6,188) |
Derivative Valuation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | 77 | (86) | (124) | (639) |
Other comprehensive income (loss) | (165) | 188 | (35) | (299) |
Reclassifications to earnings | 34 | 28 | 105 | 1,068 |
Balance, end of period | (54) | 130 | (54) | 130 |
Defined Benefit Plan | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | 72 | 103 | 72 | 103 |
Reclassifications to earnings | 34 | 28 | 105 | 1,068 |
Balance, end of period | $ 72 | $ 103 | $ 72 | $ 103 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Sep. 18, 2023 | |
Equity [Abstract] | ||||
Share repurchase program, authorized amount | $ 30,000 | |||
Shares repurchased (in shares) | 501,549 | 1,124,876 | 17,558 | |
Purchase of treasury shares | $ 8,117 | $ 18,551 | $ 276 |
Weighted Average Share Counts_2
Weighted Average Share Counts (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||||
Shares used in basic earnings per share calculation (in shares) | 17,468 | 18,230 | 17,880 | 18,179 |
Effect of dilutive securities: | ||||
Employee share-based compensation (in shares) | 70 | 293 | 92 | 210 |
Warrant (in shares) | 498 | 542 | 486 | 472 |
Total effects of dilutive securities (in shares) | 568 | 835 | 578 | 682 |
Shares used in dilutive earnings per share calculation (in shares) | 18,036 | 19,065 | 18,458 | 18,861 |
Shares considered anti-dilutive using the treasury method (in shares) | (565) | (272) | (555) | (354) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Related Party Transaction [Line Items] | |||||
Revenue | $ 126,795 | $ 131,557 | $ 384,038 | $ 398,687 | |
Accounts receivable | 164 | 164 | $ 43 | ||
Accounts payable | 61 | 61 | 2,314 | ||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Revenue | 20 | $ 10 | 40 | $ 40 | |
Accounts receivable | 200 | 200 | 40 | ||
Accounts payable | $ 60 | $ 60 | $ 2,300 |
Investment in Joint Venture - N
Investment in Joint Venture - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment | $ 430 | $ 370 | $ 372 | $ 376 | $ 380 | $ 382 |
Lake Ball, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest in joint venture | 47.50% |
Investment in Joint Venture - S
Investment in Joint Venture - Summarized Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Increase (Decrease) In Equity Method Investment [Roll Forward] | ||||
Beginning balance | $ 370 | $ 380 | $ 372 | $ 382 |
Dividends received | (322) | (280) | (849) | (607) |
Share of profit | 382 | 276 | 907 | 601 |
Ending balance | $ 430 | $ 376 | $ 430 | $ 376 |