StarTek, Inc. (NYSE:SRT) Q4 2018 Earnings Conference Call - Final Transcript
Mar 13, 2019 • 05:00 pm ET
losses in certain benefits which led to a higher tax provision for this quarter.
Adjusted EBITDA for the quarter increased 40% to $11.4 million compared to $8.1 million in the quarter ending September 30th. As a percentage of revenue, adjusted EBITDA was 7.2% compared to 5.4%. From a cost synergy perspective, we completed additional actions during the quarter to bring our total reduction in annualized cost to over $16 million since completing the merger. We are well on track to deliver on our previously stated goal of realizing $30 million in adjusted EBITDA from synergies, revenue growth, and operating efficiencies by mid-2021.
From a balance sheet perspective, as of December 31, we are approximately $24.6 million of cash and approximately $185.7 million of gross debt. This compares with $20.5 million of cash and $178.3 million of gross debt at September 30th.
In 2019, we expect to reduce our net debt position and spends on the balance sheet while also utilizing our free cash to deploy across various investments to our technology infrastructure.
This concludes my prepared remarks. I will now turn over the call back to Lance. Lance?
Thank you, Ramesh. Overall I am very proud of the progress our team has made to return StarTek to higher growth and margin expansion. We are truly gaining momentum with our new global footprint and capabilities as we implement best practices and operational excellence throughout the company.
Looking ahead, we will continue to identify opportunities for revenue growth and operating efficiencies while focusing our business development efforts in high-growth verticals such as technology, financial services, next-gen retail, healthcare, and travel. We are well positioned to execute on our growth initiatives and look forward to carrying this momentum through 2019.
Operator, Ramesh and I will now open up the call for questions.