Debt Arrangements The Restated Credit Agreement contains certain loan covenants that are customary for credit facilities of this type and that restrict our ability to take certain actions, including the creation of liens, mergers or consolidations, changes to the nature of our business, and, solely with respect to our subsidiaries, incurrence of indebtedness. In addition, the Restated Credit Agreement contains financial covenants that require us to maintain at the end of each fiscal quarter, (i) a consolida ...

Concentrix Corporation (NASDAQ:CNXC) Q2 2023 Earnings Call Transcript June 28, 2023 5:00 PM ET Company Participants David Stein - VP, IR Christopher Caldwell - President, CEO & Director Andre Valentine - CFO Conference Call Participants Vincent Colicchio - Barrington Research Associates Ruplu Bhattacharya - Bank of America Merrill Lynch Joseph Vafi - Canaccord Genuity Operator Good day and thank you for standing by. Welcome to Concentrix's Fiscal Second Quarter 2023 Financial Results Conference Call. At thi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 28, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-39494 CONCENTRIX CORPORATION (Exact name of Registrant as specified in its charter) (State or ot ...

Concentrix Corp (NASDAQ:CNXC) Q1 2023 Earnings Conference Call March 29, 2023 5:00 PM ET Company Participants David Stein - VP, IR Christopher Caldwell - President, CEO & Director Andre Valentine - CFO Conference Call Participants Vincent Colicchio - Barrington Research Associates Ruplu Bhattacharya - Bank of America Merrill Lynch Operator Good day, and thank you for standing by. Welcome to the Webhelp transaction and Concentrix First Quarter Financial Results Conference Call. [Operator Instructions]. Pleas ...

Financial Performance - Gross profit increased by 14.6% in fiscal year 2022 compared to fiscal year 2021, with gross margin percentage rising from 35.3% to 35.7%[199] - Net cash provided by operating activities was $600.72 million in fiscal year 2022, up from $514.18 million in fiscal year 2021[205] - Free cash flow for fiscal year 2022 was $460.70 million, an increase from $365.10 million in fiscal year 2021[206] - The company reported revenue of $6,324,473 for the fiscal year ended November 30, 2022, representing a significant increase compared to previous years[410] - Net income before non-controlling interest for fiscal year 2022 was $435,640, up from $405,577 in 2021, indicating a growth of approximately 7.5%[419] - Comprehensive income attributable to Concentrix Corporation for fiscal year 2022 was $189,826, down from $338,865 in 2021[419] - Revenue for the fiscal year ended November 30, 2022, was $6,357,434, an increase of 5.5% from $6,023,726 in the previous year[542] - Net income for the fiscal year ended November 30, 2022, was $431,816, compared to $392,837 in the prior year, reflecting a growth of 9.9%[542] Assets and Liabilities - Total assets increased to $6,669,768 as of November 30, 2022, compared to $5,046,367 in 2021, reflecting a growth of about 32.2%[414] - Total liabilities increased to $3,973,864 in 2022 from $2,426,112 in 2021, representing a growth of about 63.8%[414] - The company recorded $2.2 billion of indebtedness as of November 30, 2022, prior to debt issuance costs[195] - Cash, cash equivalents, and restricted cash at the end of fiscal year 2022 were $157.46 million, down from $183.01 million at the beginning of the year[205] - The company reported total equity of $2.695904 billion as of November 30, 2022, compared to $2.302085 billion in 2021[445] Acquisitions - The company acquired PK and ServiceSource during the year ended November 30, 2022, impacting 27.9% of total assets and 8.1% of total revenue[209] - The Company completed the acquisition of PK for a total cash consideration of $1,594,905,000, enhancing its capabilities in digital IT services and customer experience design[489] - The total purchase price consideration for the acquisition of PK was $1,573.3 million, funded by a new term loan and additional borrowings[515] - The total consideration transferred for the acquisition of ServiceSource was $167.2 million, with total assets acquired amounting to $230.7 million[525] - The acquisition of ServiceSource is expected to enhance the company's B2B digital sales and customer success solutions[542] - The preliminary purchase price allocation for ServiceSource includes $40,200 of identifiable intangible assets, which will be amortized over their estimated useful lives[548] - The company incurred $33,763 in acquisition-related and integration expenses for the fiscal year ended November 30, 2022[560] Tax and Indebtedness - The provision for income taxes increased in fiscal year 2022 due to a change in the mix of income earned in different tax jurisdictions[201] - The company established a reserve of $78.5 million for unrecognized tax benefits as of November 30, 2022[207] - The company may further increase its indebtedness in the future, which could have adverse consequences for operations and stockholders[195] Operational Insights - The company operates in over 40 countries, with significant concentrations in the Philippines, India, the United States, the United Kingdom, Europe, China, and Japan[410] - The Company operates in a single segment, with more than half of its workforce located in the Philippines and India, reflecting its integrated global delivery model[459] - The company has experienced variability and volatility in estimates related to the ongoing effects of the COVID-19 pandemic on its operations[430] - Concentrix experienced a significant impact from the COVID-19 pandemic, transitioning a large portion of its workforce to remote work during Q2 2020[455] Financial Controls and Reporting - The company maintains effective internal control over financial reporting as of November 30, 2022, based on established criteria[406] - The evaluation of acquisition-date fair value of customer relationships was identified as a critical audit matter, requiring significant auditor judgment[408] - The Company tests goodwill for impairment annually, with the carrying value compared to its fair value to assess potential impairment losses[497] - The company has not identified any goodwill impairment for the fiscal years presented in the consolidated financial statements[441] Share-Based Compensation - Total share-based compensation for fiscal year 2022 was $47,516, up from $36,762 in fiscal year 2021[563] - Share-based compensation costs are recognized ratably over the requisite service period, with adjustments based on performance conditions and stock price changes[509] - The fair value of stock options issued during fiscal year 2022 was estimated at $132.42 per share, with 395 options outstanding as of November 30, 2022[556] - The company expects to recognize $141,836 of total unamortized share-based compensation expense related to non-vested awards over an estimated weighted-average amortization period of 3.18 years[559] Revenue Recognition - The Company recognizes revenue primarily from the provision of CX solutions and technology, with revenue recognized over time as services are delivered[475] - In fiscal year 2022, no client accounted for more than 10% of the Company's consolidated revenue, a decrease from 11.9% in 2021 and 11.5% in 2020[501] - As of November 30, 2022, one client comprised 12.4% of the Company's total accounts receivable balance, indicating a significant concentration of credit risk[474] Other Financial Matters - The company accounts for its derivative instruments at fair value, impacting its financial position and performance[463] - The Company recognizes tax benefits from uncertain tax positions only if they are more likely than not to be sustained upon examination[509] - The Company accounts for foreign currency translation adjustments in "Accumulated other comprehensive income (loss)"[508] - Basic and diluted earnings per common share are calculated using the two-class method, considering the impact of participating securities[511] - The Company recognizes operating lease payments within "Cash flows from operating activities" in the consolidated statements of cash flows[468] - The company capitalizes costs incurred to develop software, amortizing these costs over the economic life of the software[434] - The funded status of the company's pension and other post-retirement benefit plans is measured as the difference between the fair value of plan assets and the benefit obligation[510]

Financial Data and Key Metrics Changes - For the full year 2022, revenue increased over 13% on an as-reported basis [4] - Fourth quarter revenue was $1.64 billion, representing a 12% increase compared to the previous year [6] - Non-GAAP operating income for the fourth quarter was $248 million, up from $203 million last year, with a non-GAAP operating margin of 15.1%, an increase of 120 basis points [13] - Adjusted EBITDA for the fourth quarter was $285 million, compared to $238 million last year, with an adjusted EBITDA margin of 17.4%, up 120 basis points [13] - Free cash flow for the fourth quarter was $193 million, including approximately $19 million of integration costs [14] Business Line Data and Key Metrics Changes - Revenue from healthcare clients grew approximately 23% in the fourth quarter [12] - Technology and consumer electronics verticals saw a revenue increase of 13%, driven by technology clients [12] - Retail, travel, and e-commerce clients grew by 12%, with travel clients leading the growth [12] - Revenue from banking, financial services, and insurance clients grew by 10% in the quarter [87] Market Data and Key Metrics Changes - New economy clients generated growth of 13% year-over-year and represented 22% of fourth quarter revenue [69] - The company expects organic constant currency revenue growth in the first half of 2023 to be in the low to mid-single digits, with stronger growth anticipated in the second half [73] Company Strategy and Development Direction - The company is focusing on investments in new technologies and innovative services to align with client needs for cost reduction and operational efficiency [5] - There is an emphasis on expanding the pipeline of integrated solutions and consolidating volumes from smaller providers [90] - The long-term target remains to reach $10 billion in revenues by fiscal 2025, with a focus on M&A to achieve this goal [49] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate the challenging macroeconomic environment, citing strong demand from enterprise and new economy clients [66] - The company anticipates choppiness in the first two quarters of 2023 but expects year-over-year growth to accelerate in the second half due to large deals and consolidation of volumes [66] - Management noted that the labor market has stabilized, contributing to a more predictable operational environment [85] Other Important Information - The company maintained strong liquidity at nearly $1.3 billion, including a $1 billion line of credit [15] - Full year interest expense is expected to be approximately $140 million, with an effective tax rate of around 26% [74] - The company paid a quarterly dividend of $0.275 per share and repurchased 106,000 shares for approximately $13 million in the fourth quarter [116] Q&A Session Summary Question: How is the demand for labor-intensive work changing? - The company noted a shift towards outsourcing offshore due to cost considerations, with stable pricing for higher value work [20] Question: What is the confidence level regarding signing new business? - Management indicated a high level of confidence in signing business with existing clients, particularly those who have consolidated volumes in the past [39] Question: What is the expected contribution from large deals versus consolidated volumes? - Management highlighted that growth drivers include existing clients recalibrating volume expectations and new opportunities arising from consolidation [27] Question: What are the capital allocation priorities? - The company prioritizes dividends and debt reduction, with modest share buybacks planned [108] Question: How is the sales cycle evolving? - Discussions with clients are taking longer as they evaluate outsourcing and consolidation strategies, but once decisions are made, the process accelerates [109]

Concentrix Corporation (NASDAQ:CNXC) Q3 2022 Earnings Conference Call September 29, 2022 9:00 AM ET Company Participants David Stein - Vice President, Investor Relations Chris Caldwell - President and CEO Andre Valentine - Chief Financial Officer Conference Call Participants Vincent Colicchio - Barrington Research Ruplu Bhattacharya - Bank of America Operator Good day and thank you for standing by. Welcome to the Concentrix Fiscal Third Quarter 2022 Financial Results Conference Call. At this time, all part ...

Revenue and Income - Revenue for the three months ended May 31, 2022, was $1,568,101, representing a 14.5% increase from $1,369,878 for the same period in 2021[17] - Revenue for the six months ended May 31, 2022, was $3,104.2 million, a 14.0% increase compared to $2,723.2 million for the same period in 2021[162] - Net income attributable to Concentrix Corporation for the three months ended May 31, 2022, was $113,142, a 36.5% increase compared to $82,904 for the same period in 2021[17] - Net income for the three months ended May 31, 2022, was $113,142, compared to $223,415 for the same period in the previous year, indicating a decrease of approximately 49.3%[22] - Operating income for the three months ended May 31, 2022, was $156,912 thousand, compared to $128,224 thousand for the same period in 2021, reflecting an increase in operating margin to 10.0% from 9.4%[197] Expenses and Profitability - Gross profit for the three months ended May 31, 2022, was $558.9 million, a 15.8% increase from $482.7 million in the same period in 2021[168] - Selling, general and administrative expenses for the six months ended May 31, 2022, were $792,393, up from $705,666 in the prior year, marking a rise of 12.3%[17] - Interest expense and finance charges increased by 92.3% to $12,973 in the three months ended May 31, 2022, compared to $6,745 in the same period of 2021[177] - Provision for income taxes decreased by 20.6% to $33,451 in the three months ended May 31, 2022, down from $42,121 in the prior year[183] Assets and Equity - Total assets as of May 31, 2022, were $6,612,652, an increase of 30.9% from $5,046,367 as of November 30, 2021[14] - Total stockholders' equity increased to $2,723,945 as of May 31, 2022, from $2,620,255 as of November 30, 2021[14] - Cash and cash equivalents decreased to $163,364 as of May 31, 2022, from $182,038 as of November 30, 2021[14] - Accounts receivable, net increased to $1,311.72 million as of May 31, 2022, compared to $1,207.95 million as of November 30, 2021[63] Debt and Financing - Long-term debt increased significantly to $2,197,876 as of May 31, 2022, compared to $802,017 as of November 30, 2021[14] - The Credit Facility was amended to increase the commitments under its revolving credit facility to $1,000,000 and extend its maturity to December 27, 2026[94] - The Company has entered into a senior secured credit facility with a term loan of $2,100 million and a revolving credit facility of $1,000 million, extending the maturity to December 27, 2026[204] Acquisitions - The total cash consideration for the acquisition of PK was $1,580,977, which included cash for stock, equity awards, debt repayment, and transaction expenses[45] - The company announced a definitive agreement to acquire ServiceSource for approximately $131 million, expected to close in the second half of fiscal year 2022[57] - The total assets acquired in the PK acquisition amounted to $1,747.5 million, with identifiable intangible assets valued at $469.3 million[48] Cash Flow - Net cash provided by operating activities decreased to $212,484 for the six months ended May 31, 2022, from $239,115 in the prior year, a decline of about 11.2%[28] - The company reported a net cash provided by financing activities of $1,415,405 for the six months ended May 31, 2022, compared to a net cash used of $182,586 in the prior year[28] Shareholder Returns - The Company announced a cash dividend of $0.25 per share on June 27, 2022, payable on August 9, 2022[202] - The Company repurchased common stock amounting to $57,850 for tax withholdings on equity awards during the reporting period[22] Market and Operational Risks - The company faced ongoing impacts from the COVID-19 pandemic, which affected operational and financial performance, with continued uncertainty regarding future developments[34][36] - The company expects continued impacts on revenue growth, costs, and profitability due to fluctuations in foreign currency exchange rates and inflation[152] Foreign Exchange and Hedging - The company experienced an unfavorable foreign currency translation effect on revenue of $36.7 million, or 2.7%, primarily due to the weakening of the euro, Japanese yen, British pound, and Australian dollar against the U.S. dollar[161] - The company’s hedging program is not used for trading or speculative purposes, focusing instead on mitigating foreign currency risk[73]

Concentrix Corporation (NASDAQ:CNXC) Q2 2022 Earnings Conference Call June 28, 2022 9:00 AM ET Company Participants David Stein - Vice President, Investor Relations Chris Caldwell - President and CEO Andre Valentine - Chief Financial Officer Conference Call Participants Ruplu Bhattacharya - Bank of America Vincent Colicchio - Barrington Research Operator Good day. And welcome to Concentrix Fiscal Second Quarter 2022 Financial Results Conference Call. At this time, all participants are in listen-only mode. A ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 28, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-39494 CONCENTRIX CORPORATION (Exact name of Registrant as specified in its charter) (State or ot ...