Call center manager Sitel posted a net loss of $18.8 million, more than double last year's $9.1 million, as sales fell and interest and tax expenses rose by a combined $6.6 million. Revenues fell 4 percent to $350 million as new business of almost $21 million was more than offset by $42 million of customer attrition.
Operating income slid by a quarter to $9.7 million . Adjusted EBITDA at the Nashville-based company came in at $21.0 million for the quarter versus $32.4 million in early 2013. Gross margins fell two points to 32.3 percent.
Sitel's board of directors last week approved the sale to existing shareholders of $75 million of preferred shares that will pay 16 percent in cumulative dividends by mid-2018. Proceeds of the sale will help the company "fund sales growth, invest in our clients, and execute ongoing cost initiatives." Majority investor Onex has subscribed for up to the full $75 million, but other shareholders are entitled to a pro rata share. The new preferreds are able to be converted to Class A common shares.