StarTek, Inc. (NYSE:SRT) Q2 2018 Earnings Conference Call - Final Transcript
Aug 07, 2018 • 04:30 pm ET
Good afternoon, everyone, and thank you for participating in today's conference call to discuss Startek's Financial Results for the Second Quarter ended June 30, 2018. Joining us today from Startek is President and Global CEO, Lance Rosenzweig; and the company's CFO, Ramesh Kamath. Following their remarks, we'll open the call for your questions.
(Forward-Looking Cautionary Statements)
Now I would like to turn the call over to Startek's President and Global CEO, Lance Rosenzweig.
Thank you, and good afternoon, everyone. I am thrilled to be here today leading this newly combined organization of Startek and Aegis. Since assuming the CEO role a couple of weeks ago, I have greatly enjoyed meeting so many of the exceptional Startek team members and clients and getting reacquainted with many of my former colleagues at Aegis with whom I worked when serving as CEO of Aegis USA in 2014 and when serving as CEO of PeopleSupport through our IPO and up until our acquisition by Aegis in 2008.
Let me begin today's call by quickly reviewing the closing transaction details as there were a few updates from Startek's last earnings call. Startek issued 20.6 million shares of its common stock to Capital Square Partners, or CSP, the primary shareholder of Aegis to acquire all of the outstanding common stock of Aegis. Concurrently, CSP purchased approximately 166,667 primary shares of Startek common stock at $12 per share, representing a $2 million investment. Post closing, Startek's shareholders owned approximately 45% of the combined entity with CSP owning the remaining 55%.
The transition period is progressing smoothly, and I am grateful to Startek's former CEO, Chad Carlson, and former CFO, Don Norsworthy, who have been extremely helpful to me and our team in this transitionary period. I want to thank them both. Chad is remaining with Startek as our Chief Innovation Officer where he will provide sage counsel on the many exciting innovations in our company and industry. There's a real opportunity in the BPO industry to become a pioneer in integrating advanced technologies with exceptional human capital to unlock higher margins and increase market share.
Our journey to cement our position as the leader in this space has already begun and as a large part of why our leadership team and I are so excited about the long-term prospects for the newly combined Startek and Aegis. The combined company has created a truly global platform with more than 50,000 employees operating in 13 countries on six continents. With people at the core of any business, our plan is to maximize the potential of this extraordinary talent base by implementing best practices from each company to drive down attrition rates and costs and drive up performance and employee satisfaction.
In my meetings over the past several weeks with key clients, I have heard tremendous praise of our employees, and I have no doubt they will continue to propel us forward as difference makers in this competitive space. Our global model is a differentiator for our company. Let me explain