Concentrix : Historical Metrics

Concentrix Historical Financial Results				Unaudited				Audited							Unaudited
(in thousands)						2020											2021
GAAP Consolidated Income Statement			Q1		Q2		Q3		Q4		YTD 2020			Q1		Q2		Q3		Q4		YTD 2021
Revenue
Industry vertical:
Technology and consumer electronics	$	323,913	$	327,997	$	360,365	$	410,542	$	1,422,817		$	412,818	$	417,277	$	448,104	$	481,004	$	1,759,203
Communications and media			263,564		210,684		240,718		239,268		954,234			248,790		254,860		256,461		245,172	1,005,283
Retail, travel and ecommerce		198,914		168,380		191,118		237,912		796,324			239,001		231,966		241,662		272,921		985,550
Banking, financial services and insurance			192,703		168,283		165,961		185,522		712,469			209,084		228,816		210,730		213,403		862,033
Healthcare		97,325		84,965		91,838		118,558		392,686			125,224		115,418		113,749		135,464		489,855
Other			112,201		106,053		113,693		109,056		441,004			118,361		121,541		126,545		118,644		485,091
Total revenue	$	1,188,619	$	1,066,363	$	1,163,694	$	1,300,858	$	4,719,534		$	1,353,278	$	1,369,878	$	1,397,251	$	1,466,608	$	5,587,015
Revenue	$	1,188,619	$	1,066,363	$	1,163,694	$	1,300,858	$	4,719,534		$	1,353,278	$	1,369,878	$	1,397,251	$	1,466,608	$	5,587,015
Cost of revenue			743,429		721,193		751,161		842,226	3,058,009			867,228		887,149		915,910		947,240	3,617,527
Gross profit		445,190		345,170		412,533		458,632	1,661,525			486,050		482,729		481,341		519,368	1,969,488
Selling, general and administrative expenses			356,979		321,590		335,770		338,425	1,352,764			351,161		354,505		329,962		361,463	1,397,091
Operating income		88,211		23,580		76,763		120,207		308,761			134,889		128,224		151,379		157,905		572,397
Interest expense and finance charges, net			17,585		12,928		9,002		8,798		48,313			7,703		6,745		4,868		3,730		23,046
Other (income) expense, net		(3,235)		(1,641)		593		(3,164)		(7,447)			3,803		(3,546)		(5,858)		(744)		(6,345)
Income before income taxes			73,861		12,293		67,168		114,573		267,895			123,383		125,025		152,369		154,919		555,696
Provision for income taxes		21,544		9,823		21,771		49,946		103,084			34,572		42,121		42,615		30,811		150,119
Net income		$	52,317	$	2,470	$	45,397	$	64,627	$	164,811		$	88,811	$	82,904	$	109,754	$	124,108	$	405,577
Basic earnings per common share ("EPS")		$	1.01	$	0.05	$	0.88	$	1.25	$	3.19		$	1.72	$	1.59	$	2.10	$	2.37	$	7.78
Diluted EPS	$	1.01	$	0.05	$	0.88	$	1.25	$	3.19		$	1.69	$	1.57	$	2.08	$	2.35	$	7.70

							Unaudited											Unaudited
							2020											2021
Non-GAAP Financial information *			Q1		Q2		Q3		Q4		YTD 2020			Q1		Q2		Q3		Q4		YTD 2021
Operating income		$	88,211	$	23,580	$	76,763	$	120,207	$	308,761		$	134,889	$	128,224	$	151,379	$	157,905	$	572,397
Acquisition-related and integration expenses		14,352		3,198		3,880		6,552		27,982			-		-		-		825		825
Spin-off related expenses			1,000		506		283		7,694		9,483			-		-		-		-		-
Amortization of intangibles		36,978		36,379		36,833		37,093		147,283			34,601		34,597		33,997		33,744		136,939
Share-based compensation			4,262		3,840		3,929		3,883		15,914			7,118		9,283		9,457		10,904		36,762
Gain on divestitures and related transaction costs		-		-		-		-		-		-		-		(13,197)		-		(13,197)
Non-GAAP operating income		$	144,803	$	67,503	$	121,688	$	175,429	$	509,423		$	176,608	$	172,104	$	181,636	$	203,378	$	733,726
Net income		$	52,317	$	2,470	$	45,397	$	64,627	$	164,811		$	88,811	$	82,904	$	109,754	$	124,108	$	405,577
Interest expense and finance charges, net		17,585		12,928		9,002		8,798		48,313			7,703		6,745		4,868		3,730		23,046
Provision for income taxes			21,544		9,823		21,771		49,946		103,084			34,572		42,121		42,615		30,811		150,119
Other (income) expense, net		(3,235)		(1,641)		593		(3,164)		(7,447)			3,803		(3,546)		(5,858)		(744)		(6,345)
Acquisition-related and integration expenses			14,352		3,198		3,880		6,552		27,982			-		-		-		825		825
Spin-off related expenses		1,000		506		283		7,694		9,483			-		-		-		-		-
Gain on divestitures and related transaction costs			-		-		-		-		-			-		-		(13,197)		-		(13,197)
Amortization of intangibles		36,978		36,379		36,833		37,093		147,283			34,601		34,597		33,997		33,744		136,939
Share-based compensation			4,262		3,840		3,929		3,883		15,914			7,118		9,283		9,457		10,904		36,762
Depreciation (excluding accelerated depreciation included		31,661		30,161		31,509		35,795		129,126			35,999		36,226		33,146		34,865		140,236
in acquisition-related and integration expenses above)
Adjusted EBITDA		$	176,464	$	97,664	$	153,197	$	211,224	$	638,549		$	212,607	$	208,330	$	214,782	$	238,243	$	873,962
Operating margin			7.4 %		2.2 %		6.6 %		9.2 %		6.5 %			10.0 %		9.4 %		10.8 %		10.8 %		10.2 %
Non-GAAP operating margin		12.2 %		6.3 %		10.5 %		13.5 %		10.8 %			13.1 %		12.6 %		13.0 %		13.9 %		13.1 %
Adjusted EBITDA margin			14.8 %		9.2 %		13.2 %		16.2 %		13.5 %			15.7 %		15.2 %		15.4 %		16.2 %		15.6 %
Net income		$	52,317	$	2,470	$	45,397	$	64,627	$	164,811		$	88,811	$	82,904	$	109,754	$	124,108	$	405,577
Acquisition-related and integration expenses		14,352		3,198		3,880		6,552		27,982			-		-		-		825		825
Spin-off related expenses			1,000		506		283		7,694		9,483			-		-		-		-		-
Amortization of intangibles		36,978		36,379		36,833		37,093		147,283			34,601		34,597		33,997		33,744		136,939
Share-based compensation			4,262		3,840		3,929		3,883		15,914			7,118		9,283		9,457		10,904		36,762
Gain on divestitures and related transaction costs		-		-		-		-		-		-		-		(13,197)		-		(13,197)
Income taxes related to the above**			(13,469)		(11,125)		(11,379)		(13,037)		(49,010)			(10,567)		(1,860)		(8,315)		(11,549)		(32,291)
Non-GAAP net income	$	95,440	$	35,268	$	78,943	$	106,812	$	316,463		$	119,963	$	124,924	$	131,696	$	158,032	$	534,615

							Unaudited											Unaudited
							2020											2021
Non-GAAP Financial information *			Q1		Q2		Q3		Q4		YTD 2020			Q1		Q2		Q3		Q4		YTD 2021
Net income	$	52,317	$	2,470	$	45,397	$	64,627	$	164,811	$	88,811	$	82,904	$	109,754	$	124,108	$	405,577
Less: net income allocated to participating securities			-		-		-		-		-			(1,047)		(1,254)		(1,649)		(1,790)		(5,724)
Net income attributable to common stockholders			52,317		2,470		45,397		64,627		164,811			87,764		81,650		108,105		122,318		399,853
Acquisition-related and integration expenses allocated to			14,352		3,198		3,880		6,552		27,982			-		-		-		813		813
common stockholders
Spin-off related expenses allocated to common			1,000		506		283		7,694		9,483			-		-		-		-		-
stockholders
Amortization of intangibles allocated to common			36,978		36,379		36,833		37,093		147,283			34,193		34,074		33,486		33,257		135,006
stockholders
Share-based compensation allocated to common			4,262		3,840		3,929		3,883		15,914			7,034		9,143		9,315		10,747		36,243
stockholders
Gain on divestitures and related transaction costs allocated			-		-		-		-		-			-		-		(12,999)		-		(13,011)
to common stockholders
Income taxes related to the above allocated to common			(13,469)		(11,125)		(11,379)		(13,037)		(49,010)			(10,442)		(1,832)		(8,190)		(11,382)		(31,835)
stockholders**
Non-GAAP net income attributable to common stockholders	$	95,440	$	35,268	$	78,943	$	106,812	$	316,463	$	118,549	$	123,035	$	129,717	$	155,753	$	527,069
Non-GAAP diluted EPS	$	1.85	$	0.68	$	1.53	$	2.07	$	6.13	$	2.29	$	2.37	$	2.49	$	2.99	$	10.15
Cash Flow Data			Q1		Q2		Q3		Q4		YTD 2020			Q1		Q2		Q3		Q4		YTD 2021
Net cash provided by operating activities		$	54,886	$	242,315	$	91,376	$	119,037	$	507,614		$	35,884	$	203,231	$	93,010	$	182,053	$	514,178
Purchases of property and equipment			(43,888)		(25,353)		(37,008)		(65,083)		(171,332)			(41,950)		(28,808)		(42,111)		(36,210)		(149,079)
Free cash flow (a non-GAAP measure)		$	10,998	$	216,962	$	54,368	$	53,954	$	336,282		$	(6,066)	$	174,423	$	50,899	$	145,843	$	365,099

					Unaudited									Unaudited
					2020									2021
Balance sheet data			Q1		Q2		Q3		Q4			Q1		Q2		Q3		Q4
SELECTED CONSOLIDATED BALANCE SHEET DATA
Cash and cash equivalents		$	83,620	$	94,749	$	93,341	$	152,656		$	117,576	$	131,249	$	154,193	$	182,038
Working capital	(1,458,411)	(1,404,146)	(1,299,933)		414,714			529,728		587,259		572,034		574,851
Total assets		5,159,793	4,955,479	5,119,394	5,177,556		5,120,849	5,102,240	5,009,440	5,046,367
Borrowings, current			-		-		-		33,750			-		-		-		-
Total equity		$1,509,122	$1,492,540	$1,627,967	$	2,302,085		$	2,389,278	$	2,529,768	$	2,565,755	$	2,620,255
									Audited
CONSOLIDATED BALANCE SHEET
ASSETS
Current assets:
Cash and cash equivalents		$	83,620	$	94,749	$	93,341	$	152,656		$	117,576	$	131,249	$	154,193	$	182,038
Accounts receivable, net			968,750		868,831		940,091	1,081,481		1,129,008	1,089,387	1,131,416	1,207,953
Receivable from former parent			19,191		20,725		26,298		-			-		-		-		-
Loan receivable from former parent			58,456		62,183		73,425		-		-		-		-		-
Assets held for sale			-		-		-		-			-		83,010		-		-
Other current assets			200,266		174,114		233,029		189,239			160,720		173,226		175,217		153,074
Total current assets		1,330,283	1,220,602	1,366,184	1,423,376		1,407,304	1,476,872	1,460,826	1,543,065
Property and equipment, net			416,675		403,720		423,438		451,649			445,286		399,422		397,841		407,144
Goodwill		1,825,113	1,815,692	1,835,526	1,836,050		1,837,921	1,837,900	1,822,642	1,813,502
Intangible assets, net			895,743		855,810		835,776		798,959			769,149		736,877		695,285		655,528
Deferred tax assets			71,998		71,773		72,956		47,423			49,480		41,582		43,007		48,413
Other assets			619,981		587,882		585,514		620,099			611,709		609,587		589,839		578,715
Total assets		$5,159,793	$4,955,479	$5,119,394	$	5,177,556		$	5,120,849	$	5,102,240	$	5,009,440	$	5,046,367
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	106,252	$	102,610	$	117,796	$	140,575		$	101,215	$	109,506	$	78,618	$	129,359
Current portion of long-term debt			-		-		-		33,750			-		-		-		-
Payable to former parent			86,204		83,248		87,016		22,825			-		-		-		-
Loans payable to former parent	1,964,146	1,768,449	1,721,207		-		-		-		-		-
Accrued compensation and benefits			273,104		304,727		360,609		419,715			365,272		363,948		418,329		453,434
Other accrued liabilities			320,636		358,384		354,040		371,072			373,180		356,665		342,908		351,642
Income taxes payable			38,352		7,330		25,449		20,725			37,909		29,141		48,937		33,779
Liabilities held for sale			-		-		-		-		-		30,353		-		-
Total current liabilities		2,788,694	2,624,748	2,666,117	1,008,662			877,576		889,613		888,792		968,214

			Unaudited		Audited			Unaudited
			2020				2021
		Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4
Long-term debt, net		-	-	-	1,111,362		1,113,218	959,158	865,837	802,017
Other long-term liabilities	675,813	655,957	653,567	601,887	598,314	595,619	579,746	546,410
Deferred tax liabilities		186,164	182,234	171,743	153,560		142,463	128,082	109,310	109,471
Total liabilities	3,650,671	3,462,939	3,491,427	2,875,471	2,731,571	2,572,472	2,443,685	2,426,112
Commitments and contingencies
Equity:
Preferred stock		-	-	-	-		-	-	-	-
Common stock		-	-	-	-	5	5	5	5
Additional paid-in capital		-	-	-	-		2,314,996	2,327,025	2,338,108	2,355,767
Treasury stock					-	(409)	(527)	(13,964)	(57,486)
Retained earnings		-	-	-	-		88,811	171,715	281,469	392,495
Former parent company investment	1,578,184	1,588,748	1,638,529	2,305,899		-	-	-	-
Accumulated other comprehensive loss		(69,062)	(96,208)	(10,562)	(3,814)		(14,125)	31,550	(39,863)	(70,526)
Total stockholders' equity	1,509,122	1,492,540	1,627,967	2,302,085	2,389,278	2,529,768	2,565,755	2,620,255
Total liabilities and stockholders' equity		$5,159,793	$4,955,479	$5,119,394	$5,177,556		$5,120,849	$5,102,240	$5,009,440	$5,046,367

* Non-GAAP Financial Measures

In addition to disclosing financial results that are determined in accordance with GAAP, we also disclose certain non-GAAP financial information, including:

• Non-GAAPoperating income, which is operating income, adjusted to exclude acquisition-related and integration expenses, including related restructuring costs, spin-off related expenses, amortization of intangible assets, share-based compensation and gain on divestitures and related transaction costs.
• Non-GAAPoperating margin, which is non-GAAP operating income, as defined above, divided by revenue.
• Adjusted earnings before interest, taxes, depreciation, and amortization, or adjusted EBITDA, which is non-GAAP operating income, as defined above, plus depreciation.
• Adjusted EBITDA margin, which is adjusted EBITDA, as defined above, divided by revenue.
• Non-GAAPnet income, which is net income excluding the tax effected impact of acquisition-related and integration expenses, including related restructuring costs, spin-off related expenses, amortization of intangible assets, share-based compensation and gain on divestitures and related transaction costs.
• Free cash flow, which is cash flows from operating activities less capital expenditures. We believe that free cash flow is a meaningful measure of cash flows since capital expenditures are a necessary component of ongoing operations. However, free cash flow has limitations because it does not represent the residual cash flow available for discretionary expenditures. For example, free cash flow does not incorporate payments for business acquisitions.
• Non-GAAPdiluted earnings per common share ("EPS"), which is diluted EPS excluding the per share, tax effected impact of acquisition-related and integration expenses, including related restructuring costs, spin-off related expenses, amortization of intangible assets, share-based compensation and gain on divestitures and related transaction costs.

We believe that providing this additional information is useful to the reader to better assess and understand our base operating performance, especially when comparing results with previous periods and for planning and forecasting in future periods, primarily because management typically monitors the business adjusted for these items in addition to GAAP results. Management also uses these non-GAAP measures to establish operational goals and, in some cases, for measuring performance for compensation purposes. These non-GAAP financial measures exclude amortization of intangible assets. Although intangible assets contribute to our revenue generation, the amortization of intangible assets does not directly relate to the services performed for our clients. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of our acquisition activity. Accordingly, we believe excluding the amortization of intangible assets, along with the other non-GAAP adjustments, which neither relate to the ordinary course of our business nor reflect our underlying business performance, enhances our and our investors' ability to compare our past financial performance with its current performance and to analyze underlying business performance and trends. These non-GAAP financial measures also exclude share-based compensation expense. Given the subjective assumptions and the variety of award types that companies can use when calculating share-based compensation expense, management believes this additional information allows investors to make additional comparisons between our operating results and those of our peers. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be used as a complement to, and in conjunction with, data presented in accordance with GAAP.

• The tax effect of taxable and deductible non-GAAP adjustments was calculated using the tax deductible portion of the expenses and applying the entity-specific, statutory tax rates applicable to each item during the respective fiscal years.