UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February  27, 2017

Sykes Enterprises, Incorporated

(Exact name of registrant as specified in its charter)

                Florida                	 	                     0-28274                	 		 	                56-1383460                 	
(State or other jurisdiction of
incorporation)	 	(Commission File Number)	 	 	 	(IRS Employer Identification
No.)	

			
400 N. Ashley Drive, Suite 2800, Tampa,                
                                          Florida                                                           	 	 	 	33602
                                                                 	
(Address of principal executive offices)	 	 	 	(Zip Code)	
Registrant’s telephone number, including area code: (813)  274-1000

(Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.
On February 27, 2017, Sykes Enterprises, Incorporated issued a press release announcing its financial results for the three months and year ended December 31, 2016. The press release is attached as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
 
 	  (d)	The following exhibit is included with this Report:	
Exhibit 99.1    Press release, dated February 27, 2017, announcing the financial results for the three months and year ended December 31, 2016.     
(Remainder of page intentionally left blank.)
 
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SYKES ENTERPRISES, INCORPORATED	
		
By:        	 	  /s/ John Chapman	
	 	  John Chapman
  Executive Vice President and	
	 	  Chief Financial Officer	
Date: February 27, 2017
 
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EXHIBIT INDEX

Exhibit No.	  	Description	
		
99.1	  	Press release dated February 27, 2017, announcing the financial results for the three months and year ended December 31, 2016.	

 
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Exhibit 99.1

 

			
                            FOR IMMEDIATE RELEASE                                                                          FEBRUARY 27, 2017	

 
SYKES Enterprises, Incorporated
Corporate Headquarters:
400 North Ashley Drive
Tampa, FL USA 33602
1 . 800 . TO . SYKES
http://www.sykes.com
EMEA Operations:
599 Calder Road
Edinburgh EH11 4GA
Scotland
+44 (0) 131 458-6500

SYKES ENTERPRISES, INCORPORATED REPORTS
FOURTH-QUARTER AND FULL-YEAR 2016 FINANCIAL RESULTS
—Higher demand and expense discipline drive better-than-expected diluted earnings per share performance relative to business outlook for the fourth quarter of 2016
—Demand drivers remained diversified during the fourth quarter of 2016
—U.S. growth a significant factor behind increased capital investments and overall capacity expansion
—Clearlink sustains strong in-line operating momentum
—Introducing first-quarter and full-year 2017 business outlook
TAMPA, FL – February 27, 2017 - Sykes Enterprises, Incorporated (“SYKES” or the “Company”) (NASDAQ: SYKE), a global business process outsourcing (BPO) leader in providing comprehensive inbound customer engagement services to Global 2000 companies, announced today its financial results for the fourth-quarter and full-year ended December 31, 2016.
Fourth Quarter 2016 Financial Highlights
 
 	•	 	Fourth quarter 2016 revenues of $389.1 million increased $51.8 million, or 15.4%, from $337.3 million in the comparable quarter last year, with the increase driven in part by the acquisition of Clearlink and by demand growth stemming from new client wins as well as existing and new program expansion across a majority of the vertical markets, including communications, financial services, transportation and leisure, and technology	
 
 	•	 	Non-GAAP fourth quarter 2016 revenues (see section titled “Non-GAAP Financial Measures” for an explanation and see Exhibit 12 for reconciliation) increased 4.9% comparably, with the increase in demand driven by new client wins as well as existing and new program expansion across the communications, financial services, transportation and leisure, and technology verticals. Non-GAAP revenue excludes $41.4 million in revenue contribution from the acquisition of Clearlink, which closed in the second quarter of 2016, as well as the impact of foreign exchange rate movements in the fourth quarter 2016 versus the year-ago period (i.e., evaluating revenue growth on an organic and constant currency basis)	
 
 	•	 	Fourth quarter 2016 operating margin declined to 7.4% from 8.6% for the comparable period last year. Fourth quarter 2016 operating margin reflects 10 basis points of margin contribution from the gain on the sale of a facility, which was in operation from 2000 to 2011. Fourth quarter 2016 operating margin also reflects approximately 10 basis points of reduction related to contingent consideration associated with the acquisition of Clearlink. The contingent consideration adjustment reflects additional payout related to the better-than-anticipated performance of the tuck-in acquisitions made by Clearlink prior to	

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 	its acquisition by SYKES. Factoring in the impact of the facility sale and the contingent consideration, the comparable operating margin differential (7.4% vs. 8.6%) was due to operational inefficiencies from significant capacity additions and program ramps costs as highlighted in the Company’s third quarter 2016 business outlook	
 
 	•	 	On a non-GAAP basis (see Exhibit 6 for reconciliation), which excludes the facility sale gain and the contingent consideration adjustment, fourth quarter 2016 operating margin was 9.1% versus 9.7% in the same period last year with the delta largely due to the factors stated above	
 
 	•	 	Fourth quarter 2016 diluted earnings per share were $0.43 versus $0.48 in the comparable quarter last year, with the decrease due to a combination of factors, including a higher effective tax rate, foreign currency transaction losses and previously discussed operational inefficiencies	
 
 	•	 	On a non-GAAP basis, fourth quarter 2016 diluted earnings per share were $0.52 versus $0.55 in the same period last year with the decrease related largely to the factors stated above (see Exhibit 6 for reconciliation). Fourth quarter 2016 diluted earnings per share, however, were higher relative to the Company’s November 2016 business outlook range of $0.48 to $0.51, driven by higher incremental demand and disciplined expense management	
 
 	•	 	Consolidated capacity utilization rate decreased to 75% in the fourth quarter of 2016 from 79% in the same period last year due to a significant increase in the comparable capacity additions related to projected client demand; the fourth quarter 2016 capacity data also includes roughly 1,300 seats from the Clearlink acquisition	
Americas Region
Revenues from the Company’s Americas region, including operations in North America and offshore (Latin America, South Asia and the Asia Pacific region), increased 19.5% to $327.5 million, or 84.2% of total revenues, for the fourth quarter of 2016 compared to $274.1 million, or 81.3% of total revenues, in the same prior-year period. Excluding the acquisition of Clearlink, which added $41.4 million in revenues in the quarter, constant currency organic revenues (a non-GAAP measure, see Exhibit 12 for reconciliation) for the fourth quarter of 2016 in the Americas increased 5.0% comparably, with the increased demand driven by new client wins as well as existing and new program expansion across the communications, financial services and transportation and leisure verticals.
Sequentially, revenues generated from the Americas region increased 0.5% to $327.5 from $326.0 million, or 84.5% of total revenues, in the third quarter of 2016. On a constant currency basis (a non-GAAP measure, see Exhibit 12 for reconciliation) for the fourth quarter of 2016, the Americas revenue increased 1.1% over the third quarter driven partly by certain client programs with a higher component of seasonal demand coupled with new client wins as well as existing and new program expansion.
The Americas income from operations for the fourth quarter of 2016 decreased 3.0% to $39.5 million, with an operating margin of 12.1% versus 14.8% in the comparable quarter last year. The Americas operating margin in the fourth quarter of 2016 reflects 10 basis points of margin contribution from the aforementioned gain on the sale of a facility and 20 basis points of unfavorable adjustment related to the aforementioned contingent consideration. On a non-GAAP basis, which excludes the facility gain and the contingent consideration, the Americas operating margin was 13.8% versus 16.1% in the comparable quarter last year, with the delta mostly driven by costs associated with capacity additions and ramps and previously discussed operational inefficiencies (see Exhibit 7 for reconciliation).

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Sequentially, the Americas income from operations for the fourth quarter of 2016 increased 6.8% to $39.5 million, with an operating margin of 12.1% versus 11.3% in the third quarter of 2016 driven by the factors mentioned above. On a non-GAAP basis, the Americas operating margin was 13.8% versus 13.0% in the third quarter of 2016, with the delta resulting from a higher component of seasonal demand coupled with new client wins as well as existing and new program expansion (see Exhibit 7 for reconciliation).
EMEA Region
Revenues from the Company’s Europe, Middle East and Africa (EMEA) region decreased 2.4% to $61.6 million, representing 15.8% of total revenues, for the fourth quarter of 2016, compared to $63.1 million, or 18.7% of total revenues, in the same prior year period. On a constant currency basis (a non-GAAP measure, see Exhibit 12 for reconciliation), EMEA revenues increased 4.5% on a comparable basis driven by new client wins as well as existing and new program expansion principally within the technology vertical.
Sequentially, revenues from the Company’s EMEA region increased 3.2% to $61.6 million, or 15.8% of SYKES’ total revenues, versus $59.7 million, or 15.5% of SYKES’ total revenues, in the third quarter of 2016. On a constant currency basis (a non-GAAP measure, see Exhibit 12 for reconciliation), EMEA revenues increased 8.5% sequentially, driven by new client wins as well as existing and new program expansion within the technology and communications verticals.
The EMEA region’s income from operations for the fourth quarter of 2016 was $4.7 million, or 7.6% of EMEA revenues, versus $4.0 million, or 6.3% of revenues, in the comparable quarter last year. On a non-GAAP basis, the operating margin increased to 8.5% from 6.8% in the year-ago period due to higher demand (see Exhibit 7 for reconciliation).
Sequentially, the EMEA region’s income from operations for the fourth quarter of 2016 was $4.7 million, or 7.6% of EMEA revenues, versus $7.4 million, or 12.4% of EMEA revenues, in the third quarter of 2016. The EMEA’s income from operations in the third quarter of 2016 includes $2.6 million, or approximately 440 basis points, of contingent consideration adjustment related to the acquisition of Qelp. On a non-GAAP basis, which excludes the contingent consideration, the EMEA operating margin was 8.5% versus 8.6% in the third quarter of 2016. The fourth quarter is typically impacted by fewer workdays relative to the third quarter due to holidays, which leads to a sequential drop in operating margins. In the fourth quarter of 2016, however, meaningfully higher demand from existing programs and new program wins in the fourth quarter relative to the third quarter virtually offset most of the sequential operating margin impact (see Exhibit 7 for reconciliation).
Other
Other (loss) from operations, which includes corporate and other costs, decreased to $15.3 million, or 3.9% of revenues in the fourth quarter of 2016, compared to $15.6 million, or 4.6% of revenues in the prior year period, with the percentage decrease largely a result of costs leveraged across a larger revenue base resulting from the Clearlink acquisition and lower performance based compensation. On a non-GAAP basis, Other decreased to 3.9% of revenues in the fourth quarter of 2016 from 4.6% in the year ago period due to factors stated above (see Exhibit 7 for reconciliation).
Sequentially, Other increased slightly to $15.3 million, or 3.9% of revenues, from $14.7 million, or 3.8% of revenues, in the third quarter of 2016, with the slight sequential increase mostly related to professional services expenses. On a non-GAAP basis, Other increased to 3.9% of revenues in the fourth quarter of 2016 from 3.8% in the third quarter of 2016 due to above-stated factor (see Exhibit 7 for reconciliation).

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Other Income (Expense) and Taxes
Total other income (expense), net for the fourth quarter of 2016 was $(2.4) million compared to $(1.4) million for the same period in the prior year, with the increase principally due to foreign currency transaction losses in the fourth quarter of 2016. These losses result primarily from exchange rate fluctuations in U.S. dollar denominated assets and liabilities held by the Company’s foreign subsidiaries. Other income (expense), net for the fourth quarter for 2016 reflects approximate $(0.04) million in interest accretion associated with the contingent purchase price of acquisitions by Clearlink. This accretion is the amortization of the spread between the present value and the expected contingent consideration payments over the earnout period (a non-GAAP measure, see Exhibit 6 for reconciliation).
The Company recorded an effective tax rate of 31.9% for the fourth quarter of 2016 versus 27.5% in the same period last year and above the estimated 27.0% provided in the Company’s November 2016 business outlook. The rate differential compared to the same period last year was due to a catch-up in tax credits, all of which materialized in the fourth quarter of 2015 due to legislative changes (The Path Act of 2015) in the fourth quarter of 2015. Relative to the business outlook, the increase in the effective tax rate was principally driven by a shift in the geographic mix of earnings to higher tax rate jurisdictions.
On a non-GAAP basis, the fourth quarter 2016 effective tax rate was 32.7% compared to 28.1% in the same period last year and above the estimated 29.0% provided in the Company’s November 2016 business outlook (see Exhibit 11 for reconciliation) was due to the above-mentioned factors.
2016 Financial Highlights
 
 	•	 	2016 revenues of $1,460.0 million increased $173.7 million, or 13.5%, from 2015, with the increase driven in part by the acquisition of Clearlink and full-year’s revenue contribution in 2016 from the acquisition of Qelp, which was announced in the third quarter of 2015, as well as by demand growth from new client wins as well as existing and new program expansion across a majority of the vertical markets, including communications, financial services, technology, transportation and leisure, healthcare and other (“other vertical” reflects the contribution from the retail vertical, among others)	
 
 	•	 	Non-GAAP 2016 revenues (see section titled “Non-GAAP Financial Measures” for an explanation and see Exhibit 13 for reconciliation) increased 5.3% comparably, with the broad-based increase in demand driven by new client wins as well as existing and new program expansion across the communications, financial services, transportation and leisure, healthcare, technology and other verticals. Non-GAAP revenue excludes $123.3 million in revenue contribution from the acquisition of Clearlink, which closed in the second quarter of 2016, $3.1 million of revenue contribution from Qelp, which closed in the third quarter of 2015, as well as the impact of foreign exchange rate movements in 2016 versus the year-ago period (i.e., evaluating revenue growth on an organic and constant currency basis)	
 
 	•	 	2016 operating margin was 6.3% versus 7.3% in 2015, which includes approximately 20 basis points of net favorable adjustment related to contingent consideration associated with the acquisition of Qelp and Clearlink (see Exhibit 8 for reconciliation) and the facility gain, with the decrease a result of the impact of operational inefficiencies from significant capacity additions and program ramps costs in 2016	

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 	•	 	Non-GAAP 2016 operating margin was 7.9% versus 8.5% for 2015, which excludes the net impact of the contingent consideration and facility gain, with the decrease due to the above-stated factors	
 
 	•	 	2016 diluted earnings per share were $1.48 versus $1.62 in 2015, with the decline driven disproportionately by a higher effective tax compared to the same period last year, coupled with previously discussed ramp-related operational inefficiencies, transaction costs and acquisition-related increases in intangibles related to the Clearlink transaction, all of which more than offset the net benefit from the contingent consideration and lower interest and other expenses	
 
 	•	 	On a non-GAAP basis (see Exhibit 8 for reconciliation), which excludes the net benefit from the contingent consideration as well as transaction and integration costs and intangibles related to acquisitions, diluted earnings per share was $1.84 vs. $1.87 versus the same period last year. The reduction in diluted earnings per share on a comparable basis was driven by the previously discussed ramp-related operational inefficiencies and a higher effective tax rate, more than offsetting the diluted earnings per share accretion from the Clearlink acquisition and lower interest and other expense	
Liquidity and Capital Resources
The Company’s balance sheet at December 31, 2016 remained strong with cash and cash equivalents of $266.7 million, of which approximately 91.4%, or $243.8 million, was held in international operations and is deemed to be indefinitely reinvested offshore. In 2016, net cash provided by operating activities was up 8.5% on a comparable basis to a record $130.7 million, driven mostly by changes in operating assets and liabilities. Also in 2016, the Company acquired approximately 0.4 million shares for approximately $11.1 million as part of its additional five million share repurchase authorization in the second quarter of 2016. At year end, the Company had $267.0 million in borrowings outstanding, with $173.0 million available under its $440.0 million credit facility.
Business Outlook
The assumptions driving the business outlook for the first quarter and full-year 2017 are as follows:
—In 2017, the Company expects a continuation of favorable underlying demand trends experienced in 2016. This underlying demand is being driven by growth with both existing and new clients across the Americas and EMEA regions. Specifically, the main drivers of growth remain the financial services, communications and technology verticals. Full year 2017 revenue comparables are slightly skewed, however, by the timing of the Clearlink acquisition, which closed in the second quarter of 2016, and as a result, had only nine-months of revenue contribution in 2016 versus 12-months for 2017. Anticipated revenues in 2017 also reflect an unfavorable impact of approximately $25 million from foreign exchange rates relative to 2016. Given the broader macro-economic environment and the sustained demand growth, the Company has seen pockets of some imbalances in labor and wage dynamics, which it should be able to either mitigate or completely offset through a combination of actions, including some wage increases offset by lower attrition, wage pass-throughs, shifts in delivery strategies and productivity. As a result, the Company’s implicit operating margin and explicit diluted earnings per share assumptions reflect manageable macro-economic backdrop and operational progress related to staffing inefficiencies from previously discussed significant capacity additions and sizeable program ramps in 2016;

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—The Company’s revenues and earnings per share assumptions for the first quarter and full year 2017 are based on foreign exchange rates as of February 2017. Therefore, the continued volatility in foreign exchange rates between the U.S. dollar and the functional currencies of the markets the Company serves could have a further impact, positive or negative, on revenues and both GAAP and non-GAAP earnings per share relative to the business outlook for the first quarter and full-year as discussed above;
—The Company anticipates total other interest income (expense), net of approximately ($1.5) million for the first quarter and ($6.0) million for the full year 2017. The first quarter and full year 2017 amounts include the accretion of the contingent consideration of approximately $0.03 million and $0.1 million, respectively. The amounts in the other interest income (expense), however, exclude the potential impact of any future foreign exchange gains or losses; and
—The Company’s full-year 2017 effective tax rate is expected to be roughly in line with 2016 levels; however, the effective tax rate for the first quarter of 2017 is expected to be higher compared to the same period last year with the increase driven primarily by a shift in the geographic mix of earnings to higher tax rate jurisdictions driven partly by Clearlink.
Considering the above factors, the Company anticipates the following financial results for the three months ending March 31, 2017:
 
 	•	 	Revenues in the range of $380.0 million to $385.0 million	
 
 	•	 	Effective tax rate of approximately 31.0%; **on a non-GAAP basis, an effective tax rate of approximately 33.0%	
 
 	•	 	Fully diluted share count of approximately 42.0 million	
 
 	•	 	Diluted earnings per share of approximately $0.28 to $0.32	
 
 	•	 	**Non-GAAP diluted earnings per share in the range of $0.37 to $0.41	
 
 	•	 	Capital expenditures in the range of $13.0 million to $18.0 million	
For the twelve months ending December 31, 2017, the Company anticipates the following financial results:
 
 	•	 	Revenues in the range of $1,580.0 million to $1,600.0 million	
 
 	•	 	Effective tax rate of approximately 30.0%; **on a non-GAAP basis, an effective tax rate of approximately 32.0%	
 
 	•	 	Fully diluted share count of approximately 42.3 million	
 
 	•	 	Diluted earnings per share of approximately $1.59 to $1.71	
 
 	•	 	**Non-GAAP diluted earnings per share in the range of $1.95 to $2.07	
 
 	•	 	Capital expenditures in the range of $55.0 million to $65.0 million	
**See exhibits 10 & 11 for fourth quarter and full-year 2016 non-GAAP diluted earnings per share and tax rate reconciliations.
Conference Call
The Company will conduct a conference call regarding the content of this release tomorrow, February 28, 2017, at 10:00 a.m. Eastern Standard Time. The conference call will be carried live on the Internet. Instructions for listening to the call over the Internet are available on the Investors page of SYKES’ website at www.sykes.com. A replay will be available at this location for two weeks. This press release is also posted on the SYKES website at http://investor.sykes.com/investor-relations/Investor-Resources/Investor-Relations-Home/default.aspx.

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Non-GAAP Financial Measures
Non-GAAP indicators of performance are not measures of financial performance under U.S. Generally Accepted Accounting Principles (“GAAP”) and should not be considered a substitute for measures determined in accordance with GAAP. The Company, however, uses non-GAAP measures as a way to assist readers in further understanding the Company’s results. The Company believes these non-GAAP financial measures are important indicators of performance as they are intrinsic to how management evaluates and rewards performance from its underlying operations. Constant currency organic revenue growth, which is a non-GAAP measure, for instance, facilitates comparability between time periods as this presentation allows the Company to isolate the effect of acquisition-related revenues and exchange rate differences by assuming a constant exchange rate between periods for translation. Similarly, amortization of intangible assets and depreciation of the step up in value of purchased tangible assets are excluded for purposes of calculating the non-GAAP financial measures – including but not limited to non-GAAP operating margins, non-GAAP tax rate, non-GAAP net income, non-GAAP net income per diluted share and non-GAAP income from operations – because the Company does not acquire businesses on a predictable cycle and the exclusion facilitates a more meaningful evaluation of current operating performance and comparison to operating performance in other periods as well as performance relative to its peers who are not acquisitive or as acquisitive. The Company also excludes the impact or any corresponding reversals of material restructurings approved by the appropriate level of management, gain or loss on sale of facilities, release of cumulative translation adjustment (CTA), lease obligations and facility exit costs, severance and related costs, non-cash impairment charges, deal and integration costs associated with an acquisition and accretion of interest on contingent consideration of an acquisition from non-GAAP Income (loss) from operations and non-GAAP net income because the amounts are not reflective of ongoing operating results and do not contribute to a meaningful evaluation of current operating performance or comparison to operating performance in other periods. Refer to the exhibits in the release for detailed reconciliations.
About Sykes Enterprises, Incorporated
SYKES is a global business process outsourcing (BPO) leader in providing comprehensive inbound customer engagement services to Global 2000 companies, primarily in the communications, financial services, healthcare, technology, transportation and retail industries. SYKES’ differentiated end-to-end service platform effectively engages consumers at every touch point in their customer lifecycle, starting from digital marketing and acquisition to customer support, technical support, up-sell/cross-sell and retention. Headquartered in Tampa, Florida, with customer contact engagement centers throughout the world, SYKES provides its services through multiple communication channels encompassing phone, e-mail, web, chat, social media and digital self-service. Utilizing its integrated onshore/offshore and virtual at-home agent delivery models, SYKES serves its clients through two geographic operating segments: the Americas (United States, Canada, Latin America, India and the Asia Pacific region) and EMEA (Europe, Middle East and Africa). SYKES also provides various enterprise support services in the Americas and fulfillment services in EMEA, which include order processing, inventory control, product delivery and product returns handling. For additional information please visit www.sykes.com .
Forward-Looking Statements
This press release may contain “forward-looking statements,” including SYKES’ estimates of future business outlook, prospects or financial results, statements regarding SYKES’ objectives, expectations, intentions, beliefs or strategies, or statements containing words such as “believe,” “estimate,” “project,” “expect,” “intend,” “may,” “anticipate,” “plans,” “seeks,” “implies,” or similar expressions. It is important to note that SYKES’ actual results could differ materially from those in such forward-looking statements, and undue reliance should not be placed on such statements. Among the important factors that could cause such actual results to differ materially are (i) the impact of economic recessions in the U.S. and other parts of the world, (ii) fluctuations

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in global business conditions and the global economy, ability of maintaining margins offshore (iii) SYKES’ ability to continue the growth of its support service revenues through additional technical and customer contact centers, (iv) currency fluctuations, (v) the timing of significant orders for SYKES’ products and services, (vi) loss or addition of significant clients, (vii) the early termination of contracts by clients, (viii) SYKES’ ability to recognize deferred revenue through delivery of products or satisfactory performance of services, (ix) construction delays of new or expansion of existing customer support centers, (x) difficulties or delays in implementing SYKES’ bundled service offerings, (xi) failure to achieve sales, marketing and other objectives, (xii) variations in the terms and the elements of services offered under SYKES’ standardized contract including those for future bundled service offerings, (xiii) changes in applicable accounting principles or interpretations of such principles, (xiv) delays in the Company’s ability to develop new products and services and market acceptance of new products and services, (xv) rapid technological change, (xvi) political and country-specific risks inherent in conducting business abroad, (xvii) SYKES’ ability to attract and retain key management personnel, (xviii) SYKES’ ability to further penetrate into vertically integrated markets, (xix) SYKES’ ability to expand its global presence through strategic alliances and selective acquisitions, (xx) SYKES’ ability to continue to establish a competitive advantage through sophisticated technological capabilities, (xxi) the ultimate outcome of any lawsuits or penalties (regulatory or otherwise), (xxii) SYKES’ dependence on trends toward outsourcing, (xxiii) risk of interruption of technical and customer contact management center operations due to such factors as fire, earthquakes, inclement weather and other disasters, power failures, telecommunications failures, unauthorized intrusions, computer viruses and other emergencies, (xxiv) the existence of substantial competition, (xxv) the ability to obtain and maintain grants and other incentives, including tax holidays or otherwise, (xxvi) risks related to the integration of the businesses of SYKES, Qelp and Clearlink and (xxvii) other risk factors listed from time to time in SYKES’ registration statements and reports as filed with the Securities and Exchange Commission. All forward-looking statements included in this press release are made as of the date hereof, and SYKES undertakes no obligation to update any such forward-looking statements, whether as a result of new information, future events, or otherwise.
For additional information contact:
Subhaash Kumar
Sykes Enterprises, Incorporated
(813) 233-7143

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Sykes Enterprises, Incorporated
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Exhibit 1

 	  	Three Months Ended	 	
 	  	December 31,	 	 	December 31,	 	 	September 30,	 	
 	  	2016	 	 	2015	 	 	2016	 	
Revenues	  	$	389,146	 	 	$	337,278	 	 	$	385,743	 	
Direct salaries and related costs	  	 	(252,821	) 	 	 	(214,307	) 	 	 	(249,859	) 	
General and administrative	  	 	(88,770	) 	 	 	(79,337	) 	 	 	(87,863	) 	
Depreciation, net	  	 	(13,265	) 	 	 	(10,748	) 	 	 	(13,004	) 	
Amortization of intangibles	  	 	(5,233	) 	 	 	(3,666	) 	 	 	(5,254	) 	
Net gain (loss) on disposal of property and equipment	  	 	(152	) 	 	 	(221	) 	 	 	(92	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income from operations	  	 	28,905	 	 	 	28,999	 	 	 	29,671	 	
Total other income (expense), net	  	 	(2,427	) 	 	 	(1,366	) 	 	 	(462	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income before income taxes	  	 	26,478	 	 	 	27,633	 	 	 	29,209	 	
Income taxes	  	 	(8,450	) 	 	 	(7,597	) 	 	 	(7,939	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	18,028	 	 	$	20,036	 	 	$	21,270	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income per common share:	  				 				 				
Basic	  	$	0.43	 	 	$	0.48	 	 	$	0.51	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	$	0.43	 	 	$	0.48	 	 	$	0.50	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Weighted average common shares outstanding:	  				 				 				
Basic	  	 	41,768	 	 	 	41,630	 	 	 	41,938	 	
Diluted	  	 	42,114	 	 	 	42,117	 	 	 	42,224	 	
 
9

Sykes Enterprises, Incorporated
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Exhibit 2

 	  	Year Ended	 	
 	  	December 31,	 	 	December 31,	 	
 	  	2016	 	 	2015	 	
Revenues	  	$	1,460,037	 	 	$	1,286,340	 	
Direct salaries and related costs	  	 	(947,677	) 	 	 	(836,516	) 	
General and administrative	  	 	(351,408	) 	 	 	(297,257	) 	
Depreciation, net	  	 	(49,013	) 	 	 	(43,752	) 	
Amortization of intangibles	  	 	(19,377	) 	 	 	(14,170	) 	
Net gain (loss) on disposal of property and equipment	  	 	(314	) 	 	 	(381	) 	
	  	 	 	 	 	 	 	 	
Income from operations	  	 	92,248	 	 	 	94,264	 	
Total other income (expense), net	  	 	(3,364	) 	 	 	(4,281	) 	
	  	 	 	 	 	 	 	 	
Income before income taxes	  	 	88,884	 	 	 	89,983	 	
Income taxes	  	 	(26,494	) 	 	 	(21,386	) 	
	  	 	 	 	 	 	 	 	
Net income	  	$	62,390	 	 	$	68,597	 	
	  	 	 	 	 	 	 	 	
Net income per common share:	  				 				
Basic	  	$	1.49	 	 	$	1.64	 	
	  	 	 	 	 	 	 	 	
Diluted	  	$	1.48	 	 	$	1.62	 	
	  	 	 	 	 	 	 	 	
Weighted average common shares outstanding:	  				 				
Basic	  	 	41,847	 	 	 	41,899	 	
Diluted	  	 	42,239	 	 	 	42,447	 	
 
10

Sykes Enterprises, Incorporated
Segment Results
(in thousands, except per share data)
(Unaudited)
Exhibit 3

 	  	Three Months Ended	 	
 	  	December 31,	 	  	December 31,	 	  	September 30,	 	
 	  	2016	 	  	2015	 	  	2016	 	
Revenues:	  				  				  				
Americas	  	$	327,518	 	  	$	274,139	 	  	$	326,013	 	
EMEA	  	 	61,601	 	  	 	63,098	 	  	 	59,711	 	
Other	  	 	27	 	  	 	41	 	  	 	19	 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	389,146	 	  	$	337,278	 	  	$	385,743	 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Operating Income:	  				  				  				
Americas	  	$	39,473	 	  	$	40,692	 	  	$	36,946	 	
EMEA	  	 	4,683	 	  	 	3,950	 	  	 	7,391	 	
Other	  	 	(15,251	) 	  	 	(15,643	) 	  	 	(14,666	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Income from operations	  	 	28,905	 	  	 	28,999	 	  	 	29,671	 	
				
Total other income (expense), net	  	 	(2,427	) 	  	 	(1,366	) 	  	 	(462	) 	
Income taxes	  	 	(8,450	) 	  	 	(7,597	) 	  	 	(7,939	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Net income	  	$	18,028	 	  	$	20,036	 	  	$	21,270	 	

									
 	  	Year Ended	 	
 	  	December 31,	 	  	December 31,	 	
 	  	2016	 	  	2015	 	
Revenues:	  				  				
Americas	  	$	1,220,818	 	  	$	1,045,415	 	
EMEA	  	 	239,089	 	  	 	240,826	 	
Other	  	 	130	 	  	 	99	 	
	  	 	 	 	  	 	 	 	
Total	  	$	1,460,037	 	  	$	1,286,340	 	
	  	 	 	 	  	 	 	 	
Operating Income:	  				  				
Americas	  	$	140,131	 	  	$	135,443	 	
EMEA	  	 	18,380	 	  	 	15,336	 	
Other	  	 	(66,263	) 	  	 	(56,515	) 	
	  	 	 	 	  	 	 	 	
Income from operations	  	 	92,248	 	  	 	94,264	 	
			
Total other income (expense), net	  	 	(3,364	) 	  	 	(4,281	) 	
Income taxes	  	 	(26,494	) 	  	 	(21,386	) 	
	  	 	 	 	  	 	 	 	
Net income	  	$	62,390	 	  	$	68,597	 	

11

Sykes Enterprises, Incorporated
Consolidated Balance Sheets
(in thousands, except seat data)
(Unaudited)
Exhibit 4

 	  	December 31,	 	  	December 31,	 	
 	  	2016	 	  	2015	 	
Assets:	  				  				
Current assets	  	$	623,236	 	  	$	563,037	 	
Property and equipment, net	  	 	156,214	 	  	 	111,962	 	
Goodwill & intangibles, net	  	 	418,459	 	  	 	246,629	 	
Other noncurrent assets	  	 	38,494	 	  	 	26,144	 	
	  	 	 	 	  	 	 	 	
Total assets	  	$	1,236,403	 	  	$	947,772	 	
	  	 	 	 	  	 	 	 	
Liabilities & Shareholders’ Equity:	  				  				
Current liabilities	  	$	202,857	 	  	$	153,175	 	
Noncurrent liabilities	  	 	309,024	 	  	 	115,917	 	
Shareholders’ equity	  	 	724,522	 	  	 	678,680	 	
	  	 	 	 	  	 	 	 	
Total liabilities and shareholders’ equity	  	$	1,236,403	 	  	$	947,772	 	
	  	 	 	 	  	 	 	 	
Sykes Enterprises, Incorporated
Supplementary Data

 	  	Q4 2016	 	 	Q4 2015	 	
Geographic Mix (% of Total Revenues):	  				 				
Americas (1)	  	 	84	% 	 	 	81	% 	
Europe, Middle East & Africa (EMEA)	  	 	16	% 	 	 	19	% 	
Other	  	 	0	% 	 	 	0	% 	
	  	 	 	 	 	 	 	 	
Total	  	 	100	% 	 	 	100	% 	

(1)  	Includes the United States, Canada, Latin America, South Asia and the Asia Pacific (APAC) Region. Latin America, South Asia and APAC are included in the Americas due to the nature of the business and client profile, which is primarily made up of U.S. based clients.	

 	  	Q4 2016	 	 	Q4 2015	 	
Vertical Industry Mix (% of Total Revenues):	  				 				
Communications	  	 	37	% 	 	 	31	% 	
Financial Services	  	 	23	% 	 	 	24	% 	
Technology / Consumer	  	 	18	% 	 	 	20	% 	
Transportation & Leisure	  	 	7	% 	 	 	7	% 	
Healthcare	  	 	4	% 	 	 	5	% 	
Other	  	 	11	% 	 	 	13	% 	
	  	 	 	 	 	 	 	 	
Total	  	 	100	% 	 	 	100	% 	

													
 	  	Seat Capacity (2)	 	
 	  	Q4 2016	 	 	Q4 2015	 	 	Q3 2016	 	
Americas	  	 	41,200	 	 	 	35,100	 	 	 	40,900	 	
EMEA	  	 	6,500	 	 	 	6,000	 	 	 	6,500	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total	  	 	47,700	 	 	 	41,100	 	 	 	47,400	 	

 	  	Capacity Utilization	 	
 	  	Q4 2016	 	 	Q4 2015	 	 	Q3 2016	 	
Americas	  	 	74	% 	 	 	79	% 	 	 	75	% 	
EMEA	  	 	80	% 	 	 	85	% 	 	 	78	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total	  	 	75	% 	 	 	79	% 	 	 	75	% 	

(2)  	The seat capacity and capacity utilization data are related to the Company’s brick-and-mortar call centers. At the end of the fourth quarter 2016, the Company had approximately 3,900 agent FTEs working virtually from home. There are no seats associated with Qelp.	
 
12

Sykes Enterprises, Incorporated
Cash Flow from Operations
(in thousands)
(Unaudited)
Exhibit 5

 	  	Three Months Ended	 	
 	  	December 31,	 	  	December 31,	 	  	September 30,	 	
 	  	2016	 	  	2015	 	  	2016	 	
Cash Flow From Operating Activities:	  				  				  				
Net income	  	$	18,028	 	  	$	20,036	 	  	$	21,270	 	
Depreciation	  	 	13,392	 	  	 	10,922	 	  	 	13,149	 	
Amortization of intangibles	  	 	5,233	 	  	 	3,666	 	  	 	5,254	 	
Amortization of deferred grants	  	 	(186	) 	  	 	(273	) 	  	 	(215	) 	
Changes in assets and liabilities and other	  	 	(9,043	) 	  	 	(8,800	) 	  	 	(772	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Net cash provided by operating activities	  	$	27,424	 	  	$	25,551	 	  	$	38,686	 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Capital expenditures	  	$	18,994	 	  	$	13,346	 	  	$	24,939	 	
Cash paid during period for interest	  	$	1,323	 	  	$	379	 	  	$	1,183	 	
Cash paid during period for income taxes	  	$	4,714	 	  	$	9,707	 	  	$	2,821	 	

 	  	Year Ended	 	
 	  	December 31,	 	  	December 31,	 	
 	  	2016	 	  	2015	 	
Cash Flow From Operating Activities:	  				  				
Net income	  	$	62,390	 	  	$	68,597	 	
Depreciation	  	 	49,600	 	  	 	44,515	 	
Amortization of intangibles	  	 	19,377	 	  	 	14,170	 	
Amortization of deferred grants	  	 	(845	) 	  	 	(973	) 	
Changes in assets and liabilities and other	  	 	206	 	  	 	(5,845	) 	
	  	 	 	 	  	 	 	 	
Net cash provided by operating activities	  	$	130,728	 	  	$	120,464	 	
	  	 	 	 	  	 	 	 	
Capital expenditures	  	$	78,342	 	  	$	49,662	 	
Cash paid during period for interest	  	$	4,003	 	  	$	1,476	 	
Cash paid during period for income taxes	  	$	18,764	 	  	$	30,467	 	
 
13

Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(in thousands, except per share data)
(Unaudited)
Exhibit 6

 	  	Three Months Ended	 	
 	  	December 31,	 	  	December 31,	 	  	September 30,	 	
 	  	2016	 	  	2015	 	  	2016	 	
GAAP income from operations	  	$	28,905	 	  	$	28,999	 	  	$	29,671	 	
Adjustments:	  				  				  				
Acquisition-related severance	  	 	(27	) 	  	 	—  	 	  	 	162	 	
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles	  	 	5,834	 	  	 	3,788	 	  	 	5,862	 	
Merger & integration costs	  	 	55	 	  	 	—  	 	  	 	39	 	
(Gain) loss on contingent consideration	  	 	548	 	  	 	—  	 	  	 	(2,798	) 	
Other	  	 	(2	) 	  	 	—  	 	  	 	—  	 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Non-GAAP income from operations	  	$	35,313	 	  	$	32,787	 	  	$	32,936	 	

 	  	Three Months Ended	 	
 	  	December 31,	 	  	December 31,	 	  	September 30,	 	
 	  	2016	 	  	2015	 	  	2016	 	
GAAP net income	  	$	18,028	 	  	$	20,036	 	  	$	21,270	 	
Adjustments:	  				  				  				
Acquisition-related severance	  	 	(27	) 	  	 	—  	 	  	 	162	 	
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles	  	 	5,834	 	  	 	3,788	 	  	 	5,862	 	
Merger & integration costs	  	 	55	 	  	 	—  	 	  	 	39	 	
(Gain) loss on contingent consideration	  	 	548	 	  	 	—  	 	  	 	(2,798	) 	
Other	  	 	36	 	  	 	1,054	 	  	 	207	 	
Tax effect of the adjustments	  	 	(2,322	) 	  	 	(1,531	) 	  	 	(1,594	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Non-GAAP net income	  	$	22,152	 	  	$	23,347	 	  	$	23,148	 	

 	  	Three Months Ended	 	
 	  	December 31,	 	  	December 31,	 	  	September 30,	 	
 	  	2016	 	  	2015	 	  	2016	 	
GAAP net income, per diluted share	  	$	0.43	 	  	$	0.48	 	  	$	0.50	 	
Adjustments:	  				  				  				
Acquisition-related severance	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles	  	 	0.14	 	  	 	0.09	 	  	 	0.14	 	
Merger & integration costs	  	 	—  	 	  	 	—  	 	  	 	—  	 	
(Gain) loss on contingent consideration	  	 	0.01	 	  	 	—  	 	  	 	(0.07	) 	
Other	  	 	—  	 	  	 	0.03	 	  	 	—  	 	
Tax effect of the adjustments	  	 	(0.06	) 	  	 	(0.05	) 	  	 	(0.02	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Non-GAAP net income, per diluted share	  	$	0.52	 	  	$	0.55	 	  	$	0.55	 	

14

Sykes Enterprises, Incorporated     
Reconciliation of Non-GAAP Financial Information By Segment    
(in thousands)     
(Unaudited)     
Exhibit 7    

 	  	Americas	 	 	EMEA	 	 	Other (1)	 	
 	  	Three Months Ended	 	 	Three Months Ended	 	 	Three Months Ended	 	
 	  	December 31,	 	 	December 31,	 	 	December 31,	 	  	December 31,	 	 	December 31,	 	 	December 31,	 	
 	  	2016	 	 	2015	 	 	2016	 	  	2015	 	 	2016	 	 	2015	 	
GAAP income (loss) from operations	  	$	39,473	 	 	$	40,692	 	 	$	4,683	 	  	$	3,950	 	 	$	(15,251	) 	 	$	(15,643	) 	
Adjustments:	  				 				 				  				 				 				
Acquisition-related severance	  	 	(27	) 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles	  	 	5,491	 	 	 	3,415	 	 	 	343	 	  	 	373	 	 	 	—  	 	 	 	—  	 	
Merger & integration costs	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	55	 	 	 	—  	 	
(Gain) loss on contingent consideration	  	 	548	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	
Other	  	 	(221	) 	 	 	—  	 	 	 	219	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Non-GAAP income (loss) from operations	  	$	45,264	 	 	$	44,107	 	 	$	5,245	 	  	$	4,323	 	 	$	(15,196	) 	 	$	(15,643	) 	

 	  	Americas	 	 	EMEA	 	 	Other (1)	 	
 	  	Three Months Ended	 	 	Three Months Ended	 	 	Three Months Ended	 	
 	  	December 31,	 	 	September 30,	 	 	December 31,	 	  	September 30,	 	 	December 31,	 	 	September 30,	 	
 	  	2016	 	 	2016	 	 	2016	 	  	2016	 	 	2016	 	 	2016	 	
GAAP income (loss) from operations	  	$	39,473	 	 	$	36,946	 	 	$	4,683	 	  	$	7,391	 	 	$	(15,251	) 	 	$	(14,666	) 	
Adjustments:	  				 				 				  				 				 				
Acquisition-related severance	  	 	(27	) 	 	 	162	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles	  	 	5,491	 	 	 	5,509	 	 	 	343	 	  	 	353	 	 	 	—  	 	 	 	—  	 	
Merger & integration costs	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	55	 	 	 	39	 	
(Gain) loss on contingent consideration	  	 	548	 	 	 	(208	) 	 	 	—  	 	  	 	(2,590	) 	 	 	—  	 	 	 	—  	 	
Other	  	 	(221	) 	 	 	—  	 	 	 	219	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Non-GAAP income (loss) from operations	  	$	45,264	 	 	$	42,409	 	 	$	5,245	 	  	$	5,154	 	 	$	(15,196	) 	 	$	(14,627	) 	

(1)  	Other includes corporate and other costs.	
 
15

Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(in thousands, except per share data)
(Unaudited)
Exhibit 8

 	  	Year Ended	 	
 	  	December 31,
2016	 	  	December 31,
2015	 	
GAAP income from operations	  	$	92,248	 	  	$	94,264	 	
Adjustments:	  				  				
Acquisition-related severance	  	 	135	 	  	 	—  	 	
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles	  	 	21,288	 	  	 	15,168	 	
Merger & integration costs	  	 	4,499	 	  	 	—  	 	
(Gain) loss on contingent consideration	  	 	(2,250	) 	  	 	—  	 	
Other	  	 	(2	) 	  	 	—  	 	
	  	 	 	 	  	 	 	 	
Non-GAAP income from operations	  	$	115,918	 	  	$	109,432	 	

 	  	Year Ended	 	
 	  	December 31,
2016	 	  	December 31,
2015	 	
GAAP net income	  	$	62,390	 	  	$	68,597	 	
Adjustments:	  				  				
Acquisition-related severance	  	 	135	 	  	 	—  	 	
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles	  	 	21,288	 	  	 	15,168	 	
Merger & integration costs	  	 	4,499	 	  	 	—  	 	
(Gain) loss on contingent consideration	  	 	(2,250	) 	  	 	—  	 	
Other	  	 	751	 	  	 	1,054	 	
Tax effect of the adjustments	  	 	(9,117	) 	  	 	(5,525	) 	
	  	 	 	 	  	 	 	 	
Non-GAAP net income	  	$	77,696	 	  	$	79,294	 	

 	  	Year Ended	 	
 	  	December 31,
2016	 	  	December 31,
2015	 	
GAAP net income, per diluted share	  	$	1.48	 	  	$	1.62	 	
Adjustments:	  				  				
Acquisition-related severance	  	 	—  	 	  	 	—  	 	
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles	  	 	0.51	 	  	 	0.36	 	
Merger & integration costs	  	 	0.11	 	  	 	—  	 	
(Gain) loss on contingent consideration	  	 	(0.05	) 	  	 	—  	 	
Other	  	 	0.02	 	  	 	0.03	 	
Tax effect of the adjustments	  	 	(0.23	) 	  	 	(0.14	) 	
	  	 	 	 	  	 	 	 	
Non-GAAP net income, per diluted share	  	$	1.84	 	  	$	1.87	 	

16

Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information By Segment
(in thousands)
(Unaudited)
Exhibit 9

 	  	Americas	 	  	EMEA	 	  	Other (1)	 	
 	  	Year Ended	 	  	Year Ended	 	  	Year Ended	 	
 	  	December 31,	 	 	December 31,	 	  	December 31,	 	 	December 31,	 	  	December 31,	 	 	December 31,	 	
 	  	2016	 	 	2015	 	  	2016	 	 	2015	 	  	2016	 	 	2015	 	
GAAP income (loss) from operations	  	$	140,131	 	 	$	135,443	 	  	$	18,380	 	 	$	15,336	 	  	$	(66,263	) 	 	$	(56,515	) 	
Adjustments:	  				 				  				 				  				 				
Acquisition-related severance	  	 	135	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles	  	 	19,890	 	 	 	14,470	 	  	 	1,398	 	 	 	698	 	  	 	—  	 	 	 	—  	 	
Merger & integration costs	  	 	29	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	4,470	 	 	 	—  	 	
(Gain) loss on contingent consideration	  	 	340	 	 	 	—  	 	  	 	(2,590	) 	 	 	—  	 	  	 	—  	 	 	 	—  	 	
Other	  	 	(221	) 	 	 	—  	 	  	 	219	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Non-GAAP income (loss) from operations	  	$	160,304	 	 	$	149,913	 	  	$	17,407	 	 	$	16,034	 	  	$	(61,793	) 	 	$	(56,515	) 	

(1)  	Other includes corporate and other costs.	
 
17

Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(Unaudited)
Exhibit 10

 	  	Business Outlook
First Quarter	 	
 	  	2017	 	
GAAP net income, per diluted share	  	$	0.28 - $0.32	 	
Adjustments:	  				
Acquisition-related severance	  	 	—  	 	
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles	  	 	0.14	 	
Merger & integration costs	  	 	—  	 	
(Gain) loss on contingent consideration	  	 	—  	 	
Other	  	 	—  	 	
Tax effect of the adjustments	  	 	(0.05	) 	
	  	 	 	 	
Non-GAAP net income, per diluted share	  	$	0.37 - $0.41	 	

 	  	Business Outlook
Full Year	 	
 	  	2017	 	
GAAP net income, per diluted share	  	$	1.59 - $1.71	 	
Adjustments:	  				
Acquisition-related severance	  				
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles	  	 	—  	 	
Merger & integration costs	  	 	0.55	 	
(Gain) loss on contingent consideration	  	 	—  	 	
Other	  	 	0.01	 	
Tax effect of the adjustments	  	 	(0.20	) 	
	  	 	 	 	
Non-GAAP net income, per diluted share	  	$	1.95 - $2.07	 	

18

Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(Unaudited)
Exhibit 11

 	  	Three Months Ended	 	
 	  	December 31,	 	 	December 31,	 	
 	  	2016	 	 	2015	 	
GAAP tax rate	  	 	32	% 	 	 	27	% 	
Adjustments:	  				 				
Acquisition-related severance	  	 	0	% 	 	 	0	% 	
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles	  	 	1	% 	 	 	1	% 	
Merger & integration costs	  	 	0	% 	 	 	0	% 	
(Gain) loss on contingent consideration	  	 	0	% 	 	 	0	% 	
Other	  	 	0	% 	 	 	0	% 	
	  	 	 	 	 	 	 	 	
Non-GAAP tax rate	  	 	33	% 	 	 	28	% 	

 	  	Three Months
Ended	 	 	Year Ended	 	
 	  	March 31,	 	 	December 31,	 	
 	  	2017	 	 	2017	 	
GAAP tax rate	  	 	31	% 	 	 	30	% 	
Adjustments:	  				 				
Acquisition-related severance	  	 	0	% 	 	 	0	% 	
Acquisition-related depreciation and amortization of property and equipment and purchased intangibles	  	 	2	% 	 	 	2	% 	
Merger & integration costs	  	 	0	% 	 	 	0	% 	
(Gain) loss on contingent consideration	  	 	0	% 	 	 	0	% 	
Other	  	 	0	% 	 	 	0	% 	
	  	 	 	 	 	 	 	 	
Non-GAAP tax rate	  	 	33	% 	 	 	32	% 	

19

Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information By Segment
(in thousands)
(Unaudited)
Exhibit 12

 	  	Three Months Ended
December 31, 2016 vs. December 31, 2015 (4)	 	
 	  	Americas	 	 	EMEA	 	 	Other  (5)	 	 	Consolidated	 	
GAAP revenue growth	  	 	19.5	% 	 	 	-2.4	% 	 	 	-34.1	% 	 	 	15.4	% 	
Adjustments:	  				 				 				 				
Clearlink acquisition (1)	  	 	-15.1	% 	 	 	0.0	% 	 	 	0.0	% 	 	 	-12.3	% 	
Qelp acquisition (2)	  	 	0.0	% 	 	 	0.0	% 	 	 	0.0	% 	 	 	0.0	% 	
Foreign currency impact (3)	  	 	0.6	% 	 	 	6.9	% 	 	 	0.0	% 	 	 	1.8	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-GAAP constant currency organic revenue growth	  	 	5.0	% 	 	 	4.5	% 	 	 	-34.1	% 	 	 	4.9	% 	
			
 	  	Three Months Ended
December 31, 2016 vs. September 30, 2016  (4)	 	 	 	 	
 	  	Americas	 	 	EMEA	 	 	Other (5)	 	 	 	 	
GAAP revenue growth	  	 	0.5	% 	 	 	3.2	% 	 	 	42.1	% 	 				
Adjustments:	  				 				 				 				
Clearlink acquisition (1)	  	 	0.0	% 	 	 	0.0	% 	 	 	0.0	% 	 				
Qelp acquisition (2)	  	 	0.0	% 	 	 	0.0	% 	 	 	0.0	% 	 				
Foreign currency impact (3)	  	 	0.6	% 	 	 	5.3	% 	 	 	0.0	% 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Non-GAAP constant currency organic revenue growth	  	 	1.1	% 	 	 	8.5	% 	 	 	42.1	% 	 				
 
(1)  	The Company acquired Clearlink on April 1, 2016.	
(2)  	The Company acquired Qelp on July 2, 2015.	
(3)  	Foreign exchange fluctuations are calculated on a constant currency basis by translating the current period reported amounts using the prior period foreign exchange rate for each underlying currency.	
(4)  	Represents the period-over-period growth rate.	
(5)  	Other includes corporate and other costs.	
 
20

Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information By Segment
(in thousands)
(Unaudited)
Exhibit 13

 	  	Year Ended
December 31, 2016 vs. December 31, 2015 (4)	 	
 	  	Americas	 	 	EMEA	 	 	Other  (5)	 	 	Consolidated	 	
GAAP revenue growth	  	 	16.8	% 	 	 	-0.7	% 	 	 	31.3	% 	 	 	13.5	% 	
Adjustments:	  				 				 				 				
Clearlink acquisition (1)	  	 	-11.8	% 	 	 	0.0	% 	 	 	0.0	% 	 	 	-9.6	% 	
Qelp acquisition (2)	  	 	0.0	% 	 	 	-1.3	% 	 	 	0.0	% 	 	 	-0.2	% 	
Foreign currency impact (3)	  	 	1.2	% 	 	 	3.4	% 	 	 	0.0	% 	 	 	1.6	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-GAAP constant currency organic revenue growth	  	 	6.2	% 	 	 	1.4	% 	 	 	31.3	% 	 	 	5.3	% 	
 
(1)	The Company acquired Clearlink on April 1, 2016.	
(2)	The Company acquired Qelp on July 2, 2015.	
(3)	Foreign exchange fluctuations are calculated on a constant currency basis by translating the current period reported amounts using the prior period foreign exchange rate for each underlying currency.	
(4)	Represents the period-over-period growth rate.	
(5)	Other includes corporate and other costs.	
 
21