Concentrix(US:CNXC)2022-07-07 16:00Revenue 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]