EX-99.1 2 a18-8072_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

REVISED

 

TTEC Announces Fourth Quarter and Full Year 2017 Financial Results

 

Fourth Quarter 2017

 

Completes Rebranding to TTEC

Increases Semi-annual Dividend

Signs $119 Million in New Business

Acquires Digital Customer Experience Trust & Safety Company, Motif, Inc.

 

Revenue was a Record $426.6 Million ($423.2 Million Non-GAAP AHFS/WD)

Operating Income of $36.6 Million or 8.6 Percent of Revenue

($47.5 Million or 11.2 Percent Non-GAAP AHFS/WD)

Including a One-time Mandatory Deemed Repatriation Tax from The 2017 U.S. Tax Act,

Fully Diluted Loss Per Share of 89 Cents (Positive EPS of 67 Cents Non-GAAP)

 

Provides Outlook for Full Year 2018 Revenue and Operating Income

 

DENVER, March 12, 2018 — TTEC (NASDAQ: TTEC), a leading global technology and services provider focused exclusively on the design, implementation and delivery of transformative customer experience for many of the world’s most iconic and disruptive brands, today announced financial results for the fourth quarter and full year ended December 31, 2017.

 

“2017 was a strong year for us. We exceeded our financial goals with record revenue and adjusted operating income, completed two strategic acquisitions, added many marquee names to our client portfolio, launched our insight-driven, technology-enabled Humanify Customer Engagement as a Service offering, strengthened our leadership team and continued to lead the industry in client satisfaction,” commented Ken Tuchman, TTEC chairman and chief executive officer.

 

“With these accomplishments, combined with the underlying momentum across the business, we also took the step to rename the company to TTEC to reflect our successful transformation to an integrated end-to-end omnichannel customer experience services partner and leader in digitizing the customer experience. The name change was a strategic business decision representing the culmination of hundreds of millions of dollars of investment in strategic acquisitions, R&D including over 100 patents, and our diversified capabilities, alongside the successful adoption of our end-to-end platform by clients across the globe,” Tuchman explained.

 

“With the proliferation of channels in combination with relevant and dynamic customer insights, every touchpoint is a unique opportunity to form a lasting customer relationship. Service experience is the new brand differentiator and captivating omnichannel experiences is the modern day currency for retention and growth. Across the globe, we are being chosen as a strategic partner for customer experience transformation combining strategy, analytics, AI and technology with human talent to drive growth, increase profitability and deepen customer loyalty,” concluded Tuchman.

 

Investor Relations Contact
Paul Miller
+1.303.397.8641

Public Relations Contact

Olivia Griner
+1.303.397.8999

Address
9197 South Peoria Street
Englewood, CO 80112

Contact
ttec.com
+1.800.835.3832

 



 

 

FULL YEAR 2017 FINANCIAL HIGHLIGHTS

 

GAAP - In accordance with Generally Accepted Accounting Principles.

 

Non-GAAP AHFS/WD (Excluding Assets Held for Sale and Wind-down) - As discussed below and shown in the attached reconciliation table, the definition of Non-GAAP AHFS/WD excludes from revenue and operating income i) assets held for sale and wind-down, and ii) impairment, restructuring and integration charges.

 

Revenue

·                  Full year 2017 GAAP revenue increased 15.8 percent to $1.477 billion compared to $1.275 billion in 2016.

·                  On a non-GAAP AHFS/WD basis, 2017 revenue grew 17.3 percent over the prior year to $1.457 billion. Organic revenue growth was 4.3 percent.

 

Income from Operations

·                  Full year 2017 GAAP income from operations was $100.5 million or 6.8 percent of revenue compared to $52.8 million or 4.1 percent of revenue in 2016.

·                  2017 income from operations on a non-GAAP AHFS/WD basis, excluding $20.0 million in restructuring and integration charges, and asset impairments, was $122.5 million, representing 7.6 percent of adjusted revenue versus 8.6 percent the prior year.

 

Earnings Per Share

·                  Full year 2017 GAAP fully diluted earnings per share attributable to TTEC shareholders, including a one-time mandatory deemed repatriation tax of $62.4 million (or $1.34 per share) related to new U.S. tax reform legislation, was $0.16 compared to $0.71 in 2016.

·                  Non-GAAP fully diluted earnings per share was $1.80 compared to $1.32 in the prior year.

 

Bookings

 

During the full year 2017, TTEC signed an estimated $442 million in annualized contract value revenue from new and expanded client relationships, a 4.7 percent increase over the prior year. The bookings mix was diversified across verticals with approximately 77 percent from existing clients and 13 percent outside of the United States.

 

FOURTH QUARTER 2017 FINANCIAL HIGHLIGHTS

 

Revenue

·                  Fourth quarter 2017 GAAP revenue increased 23.7 percent to $426.6 million compared to $344.9 million in the prior year period.

 

·                  Non-GAAP AHFS/WD revenue increased 25.4 percent to $423.2 million over the prior year period. Organic revenue growth was 7.5 percent.

 

Investor Relations Contact
Paul Miller
+1.303.397.8641

Public Relations Contact

Olivia Griner
+1.303.397.8999

Address
9197 South Peoria Street
Englewood, CO 80112

Contact
ttec.com
+1.800.835.3832

 



 

 

Income from Operations

·                  Fourth quarter 2017 GAAP income from operations was $36.6 million, or 8.6 percent of revenue, compared to $6.2 million, or 1.8 percent of revenue in the fourth quarter 2016.

·                  Non-GAAP AHFS/WD income from operations, excluding $10.2 million in restructuring and integration charges, and asset impairments, was $47.5 million or 11.2 percent of adjusted revenue versus 10.1 percent the prior year.

 

Earnings Per Share

·                  Fourth quarter 2017 GAAP fully diluted loss per share attributable to TTEC shareholders, including a one-time mandatory deemed repatriation tax of $62.4 million (or $1.34 per share) related to new U.S. tax reform legislation, was $0.89 compared to a loss of $0.01 in the same period last year.

·                  Non-GAAP fully diluted earnings per share was $0.67 compared to $0.42 in the prior year.

 

Bookings

·                  During the fourth quarter 2017, TTEC signed an estimated $119 million in annualized contract value revenue from new and expanded client relationships. The fourth quarter bookings mix was diversified across verticals with 72 percent from existing clients and 10 percent from outside of the United States.

 

STRONG BALANCE SHEET CONTINUES TO FUND OPERATIONS, SHARE REPURCHASES, DIVIDENDS, AND INVESTMENTS

 

·                  As of December 31, 2017, TTEC had cash and cash equivalents of $74.4 million and debt of $361.3 million, resulting in a net debt position of $286.9 million.

 

·                  As of December 31, 2017, TTEC had approximately $350 million of additional borrowing capacity available under its revolving credit facility.

 

·                  Cash flow from operations in the fourth quarter 2017 was a negative $36.5 million compared to $1.0 million in the fourth quarter 2016. For the full year, cash flow from operations was a positive $113.2 million compared to $111.8 million in 2016.

 

·                  Capital expenditures in the fourth quarter 2017 were $8.0 million compared to $12.0 million in the fourth quarter 2016.  For the full year, capital expenditures were $52.0 million compared to $50.8 million in 2016.

 

·                  Declared a 25-cent dividend per share, or $11.5 million, which was paid on October 17, 2017 to shareholders of record on October 5, 2017. The dividend represented a 25 percent increase over the distribution paid in October 2016.

 

·                  No shares of common stock were repurchased in the fourth quarter 2017. For the full year 2017, approximately 609 thousand shares of common stock were repurchased for a cost of $18.3 million. As of December 31, 2017, $26.6 million was authorized for future share repurchases.

 

Investor Relations Contact
Paul Miller
+1.303.397.8641

Public Relations Contact

Olivia Griner
+1.303.397.8999

Address
9197 South Peoria Street
Englewood, CO 80112

Contact
ttec.com
+1.800.835.3832

 



 

 

SEGMENT REPORTING & COMMENTARY

 

TTEC reports financial results for the following four business segments: Customer Management Services (CMS), Customer Growth Services (CGS), Customer Technology Services (CTS) and Customer Strategy Services (CSS).  Financial highlights for the segments are provided below.

 

Customer Management Services (CMS) — Customer Experience Delivery Solutions

·                  CMS fourth quarter 2017 GAAP revenue increased 32.1 percent to $343.3 million compared to $259.9 million in the year ago quarter. Organic revenue growth was 8.8 percent. Income from operations was $34.4 million or 10.0 percent of revenue compared to $14.4 million or 5.5 percent of revenue in the prior year.

·                  Non-GAAP income from operations was $39.2 million or 11.4 percent of revenue. This compares to $27.0 million or 10.4 percent of revenue in the prior year.

 

Customer Growth Services (CGS) — Digitally-Enabled Revenue Growth Solutions

·                  CGS fourth quarter 2017 GAAP revenue declined 9.9 percent to $31.8 million compared to $35.3 million in the year ago quarter. Income from operations was $1.5 million or 4.7 percent of revenue compared to $2.8 million or 8.0 percent of revenue in the prior year.

·                  Non-GAAP AHFS/WD revenue declined 9.0 percent to $30.9 million over the year ago period and income from operations was $2.1 million or 6.9 percent of adjusted revenue. This compares to $2.9 million or 8.5 percent of adjusted revenue in the prior year.

 

Customer Technology Services (CTS) — Hosted and Managed Technology Solutions

·                  CTS fourth quarter 2017 GAAP revenue grew 4.6 percent to $33.5 million compared to $32.1 million in the year ago quarter. Income from operations was $1.0 million or 3.0 percent of revenue compared to an operating loss of $9.0 million or negative 28.1 percent of revenue in the prior year.

·                  Non-GAAP AHFS/WD revenue increased 21.6 percent to $33.5 million over the year ago period and income from operations was $4.4 million or 13.0 percent of adjusted revenue. This compares to $2.2 million or 7.9 percent of adjusted revenue in the prior year.

 

Customer Strategy Services (CSS) — Customer Experience Strategy and Data Analytics Solutions

·                  CSS fourth quarter 2017 GAAP revenue grew 2.1 percent to $18.0 million from $17.7 million in the year ago quarter. Loss from operations was $0.3 million or a negative 1.7 percent of revenue compared to an operating loss of $1.9 million or negative 11.0 percent of revenue in the prior year.

·                  Non-GAAP AHFS/WD revenue declined 2.7 percent to $15.5 million over the year ago period and income from operations was $1.8 million or 11.5 percent of adjusted revenue. This compares to operating income of $2.0 million or 12.7 percent of revenue in the prior year.

 

Investor Relations Contact
Paul Miller
+1.303.397.8641

Public Relations Contact

Olivia Griner
+1.303.397.8999

Address
9197 South Peoria Street
Englewood, CO 80112

Contact
ttec.com
+1.800.835.3832

 



 

 

BUSINESS OUTLOOK

 

“We are pleased with our 2017 performance, which exceeded our expectations and guidance,” commented Regina Paolillo, chief financial and administrative officer at TTEC. “In addition to our unwavering strategic focus to differentiate our solution portfolio and improve our go-to-market platforms, it is clear that the sales execution and profit optimization initiatives that we executed in 2016 was a noteworthy catalyst to our record 2017 performance.”

 

Paolillo continued, “We enter 2018 with a strong backlog supporting our continued progress in growing our top line and expanding our profit margins. Our revenue backlog is a premium to prior years, our cost structure is streamlined, and our sales and operations teams are aligned to increasingly deliver our full suite of unified capabilities across TTEC Digital and TTEC Engage. Last, our Board remains committed to maximizing shareholder value by utilizing our balance sheet and cash flow to invest in acquisitions and other strategic investments as well as distribute capital to our shareholders.”

 

We anticipate full year 2018 guidance, excluding non-GAAP AHFS/WD (Assets Held for Sale and Wind-down), which represents approximately $8 million of revenue and breakeven operating income, as follows:

 

·                  Revenue — GAAP revenue estimated to increase 3.3 to 4.7 percent between $1.505 and $ 1.525 billion.

·                  EBITDA Margin — Non-GAAP EBITDA margin estimated between 13.0 and 13.3 percent.

·                  Operating Income Margin — GAAP operating income margin estimated between 8.7 and 8.9 percent.

·                  Capital Expenditures — Capital expenditures estimated at 3.8 percent of revenue, of which approximately 70 percent is growth oriented.

 

SEC FILINGS

 

The Company’s filings with the Securities and Exchange Commission are available in the “Investors” section of TTEC’s website, which can be found at www.ttec.com.

 

About TTEC (pronounced T-tec):

 

TTEC (NASDAQ: TTEC) is a leading global technology and services provider focused exclusively on the design, implementation and delivery of transformative customer experience for many of the world’s most iconic and disruptive brands. The Company delivers outcome-based customer engagement solutions through TTEC Digital, its digital consultancy that designs and builds human centric, tech-enabled, insight-driven customer experience solutions for clients and TTEC Engage, its delivery center of excellence, that operates customer acquisition, care, growth and digital trust and safety services. Founded in 1982, the Company’s 56,000 employees operate on six continents across the globe and live by a set of customer-focused values that guide relationships with clients, their customers, and each other. To learn more about how TTEC is bringing humanity to the customer experience, visit www.ttec.com.

 

###

 

Investor Relations Contact
Paul Miller
+1.303.397.8641

Public Relations Contact

Olivia Griner
+1.303.397.8999

Address
9197 South Peoria Street
Englewood, CO 80112

Contact
ttec.com
+1.800.835.3832

 



 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

 

 

 

Three months ended

 

Twelve months ended

 

 

 

December 31,

 

December 31,

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

426,623

 

$

344,947

 

$

1,477,365

 

$

1,275,258

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

Cost of services

 

312,618

 

249,943

 

1,110,068

 

941,592

 

Selling, general and administrative

 

49,942

 

44,895

 

182,314

 

175,797

 

Depreciation and amortization

 

17,234

 

16,914

 

64,507

 

68,675

 

Restructuring and integration charges, net

 

4,897

 

502

 

14,665

 

4,392

 

Impairment losses

 

5,322

 

26,448

 

5,322

 

32,050

 

Total operating expenses

 

390,013

 

338,702

 

1,376,876

 

1,222,506

 

 

 

 

 

 

 

 

 

 

 

Income From Operations

 

36,610

 

6,245

 

100,489

 

52,752

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

(8,318

)

290

 

(11,602

)

(2,454

)

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

28,292

 

6,535

 

88,887

 

50,298

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(69,016

)

(6,196

)

(78,075

)

(12,863

)

 

 

 

 

 

 

 

 

 

 

Net Income

 

(40,724

)

339

 

10,812

 

37,435

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling interest

 

(728

)

(953

)

(3,556

)

(3,757

)

 

 

 

 

 

 

 

 

 

 

Net Income Attributable to TTEC Stockholders

 

$

(41,452

)

$

(614

)

$

7,256

 

$

33,678

 

 

 

 

 

 

 

 

 

 

 

Net Income Per Share Attributable to TTEC Stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.90

)

$

(0.01

)

$

0.16

 

$

0.71

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

$

(0.89

)

$

(0.01

)

$

0.16

 

$

0.71

 

 

 

 

 

 

 

 

 

 

 

Income From Operations Margin

 

8.6

%

1.8

%

6.8

%

4.1

%

Net Income Attributable to TTEC Stockholders Margin

 

(9.7

)%

(0.2

)%

0.5

%

2.6

%

Effective Tax Rate

 

243.9

%

94.8

%

87.8

%

25.6

%

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding

 

 

 

 

 

 

 

 

 

Basic

 

45,856

 

46,386

 

45,826

 

47,423

 

Diluted

 

46,461

 

46,677

 

46,382

 

47,736

 

 



 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(In thousands)

 

 

 

Three months ended

 

Twelve months ended

 

 

 

December 31,

 

December 31,

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

Customer Management Services

 

$

343,252

 

$

259,933

 

$

1,141,760

 

$

924,325

 

Customer Growth Services

 

31,808

 

35,292

 

128,698

 

141,005

 

Customer Technology Services

 

33,527

 

32,056

 

138,581

 

141,254

 

Customer Strategy Services

 

18,036

 

17,666

 

68,326

 

68,674

 

Total

 

$

426,623

 

$

344,947

 

$

1,477,365

 

$

1,275,258

 

 

 

 

 

 

 

 

 

 

 

Income From Operations:

 

 

 

 

 

 

 

 

 

Customer Management Services

 

$

34,402

 

$

14,352

 

$

78,206

 

$

50,541

 

Customer Growth Services

 

1,508

 

2,831

 

7,803

 

6,969

 

Customer Technology Services

 

1,013

 

(8,999

)

12,047

 

933

 

Customer Strategy Services

 

(313

)

(1,939

)

2,433

 

(5,691

)

Total

 

$

36,610

 

$

6,245

 

$

100,489

 

$

52,752

 

 



 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

December 31,

 

December 31,

 

 

 

2017

 

2016

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

74,437

 

$

55,264

 

Accounts receivable, net

 

385,751

 

300,808

 

Other current assets

 

74,767

 

66,940

 

Assets held for sale

 

7,835

 

10,715

 

Total current assets

 

542,790

 

433,727

 

 

 

 

 

 

 

Property and equipment, net

 

163,297

 

151,037

 

Other assets

 

372,649

 

261,540

 

 

 

 

 

 

 

Total assets

 

$

1,078,736

 

$

846,304

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Total current liabilities

 

$

200,456

 

$

178,672

 

Liabilities held for sale

 

1,322

 

1,357

 

Other long-term liabilities

 

514,113

 

304,380

 

Total equity

 

362,845

 

361,895

 

 

 

 

 

 

 

Total liabilities and equity

 

$

1,078,736

 

$

846,304

 

 



 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

(In thousands, except per share data)

 

 

 

Three months ended

 

Twelve months ended

 

 

 

December 31,

 

December 31,

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

426,623

 

$

344,947

 

$

1,477,365

 

$

1,275,258

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of EBIT & EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) Attributable to TTEC stockholders

 

$

(41,452

)

$

(614

)

$

7,256

 

$

33,678

 

Interest income

 

(821

)

(408

)

(2,841

)

(1,234

)

Interest expense

 

5,035

 

2,185

 

13,734

 

7,943

 

Provision for income taxes

 

69,016

 

6,196

 

78,075

 

12,863

 

EBIT

 

$

31,778

 

$

7,359

 

$

96,224

 

$

53,250

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

17,234

 

16,914

 

64,507

 

68,675

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

49,012

 

$

24,273

 

$

160,731

 

$

121,925

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Free Cash Flow:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flow From Operating Activities:

 

 

 

 

 

 

 

 

 

Net income

 

$

(40,724

)

$

339

 

$

10,812

 

$

37,435

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

17,234

 

16,914

 

64,507

 

68,675

 

Other

 

(13,001

)

(16,261

)

37,833

 

5,720

 

Net cash provided by operating activities

 

(36,491

)

992

 

113,152

 

111,830

 

 

 

 

 

 

 

 

 

 

 

Less - Total Capital Expenditures

 

8,026

 

11,969

 

51,958

 

50,832

 

 

 

 

 

 

 

 

 

 

 

Free Cash Flow

 

$

(44,517

)

$

(10,977

)

$

61,194

 

$

60,998

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Income from Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Operations

 

$

36,610

 

$

6,245

 

$

100,489

 

$

52,752

 

Restructuring and integration charges, net

 

4,897

 

502

 

14,665

 

4,392

 

Impairment losses

 

5,322

 

26,448

 

5,322

 

32,050

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Income from Operations

 

$

46,829

 

$

33,195

 

$

120,476

 

$

89,194

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Income from Operations Margin

 

11.0

%

9.6

%

8.2

%

7.0

%

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP EPS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income Attributable to TTEC stockholders

 

$

(41,452

)

$

(614

)

$

7,256

 

$

33,678

 

Add: Asset impairment, restructuring and integration charges, net of related taxes

 

6,401

 

18,479

 

12,304

 

26,190

 

Add: Estimated (gain) loss on assets held for sale, net of related taxes

 

(360

)

 

1,547

 

4,208

 

Add: Changes in acquisition contingent consideration / transition services agreement, net of related taxes

 

3,150

 

(118

)

3,150

 

(4,553

)

Add: Interest charge related to future purchase of remaining 30% for Motif acquisition

 

1,210

 

 

1,210

 

 

Less: Gain on dissolution of foreign subsidiary, net of related taxes

 

 

 

(1,891

)

 

Less: Gain on sale of business unit

 

(155

)

 

(258

)

 

Add: US 2017 Tax Act

 

62,372

 

 

62,372

 

 

Add: Changes in valuation allowance and returns to provision adjustments

 

25

 

1,720

 

(2,175

)

3,623

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Net Income Attributable to TTEC stockholders

 

$

31,191

 

$

19,467

 

$

83,515

 

$

63,146

 

 

 

 

 

 

 

 

 

 

 

Diluted shares outstanding

 

46,461

 

46,677

 

46,382

 

47,736

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP EPS Attributable to TTEC stockholders

 

$

0.67

 

$

0.42

 

$

1.80

 

$

1.32

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income Attributable to TTEC stockholders

 

$

(41,452

)

$

(614

)

$

7,256

 

$

33,678

 

Interest income

 

(821

)

(408

)

(2,841

)

(1,234

)

Interest expense

 

5,035

 

2,185

 

13,734

 

7,943

 

Provision for income taxes

 

69,016

 

6,196

 

78,075

 

12,863

 

Depreciation and amortization

 

17,234

 

16,914

 

64,507

 

68,675

 

Asset impairment, restructuring and integration charges

 

10,219

 

26,950

 

19,987

 

36,442

 

Gain on dissolution of a foreign subsidiary

 

 

 

(3,160

)

 

Gain on sale of business unit

 

(259

)

 

(430

)

 

Changes in acquisition contingent consideration / transition service agreement

 

5,250

 

(199

)

5,250

 

(4,766

)

Estimated (gain) loss of assets held for sale

 

(600

)

 

2,578

 

5,300

 

Equity-based compensation expenses

 

3,494

 

2,495

 

11,852

 

9,773

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP EBITDA

 

$

67,116

 

$

53,519

 

$

196,808

 

$

168,674

 

 



 

TELETECH HOLDINGS, INC.

 

Non-GAAP AHFS/WD Reconciliation (Excluding Assets Held For Sale and Wind-down) & Year-over-Year (YoY) Growth Rate Comparison

U.S. Dollars in Thousands

 

FOURTH QUARTER

(three months end, December 31, 2017)

 

Revenue

 

 

 

GAAP Revenue

 

Non-GAAP
Revenue
Contribution
from
AHFS/WD

 

Non-GAAP
Revenue
(excluding
AHFS/WD)

 

CMS

 

$

343,252

 

$

 

$

343,252

 

YoY Growth Rate:

 

32.1

%

 

 

32.1

%

 

 

 

 

 

 

 

 

CGS

 

$

31,808

 

$

915

 

$

30,893

 

YoY Growth Rate:

 

-9.9

%

 

 

-9.0

%

CTS

 

$

33,527

 

$

 

$

33,527

 

YoY Growth Rate:

 

4.6

%

 

 

21.6

%

CSS

 

$

18,036

 

$

2,542

 

$

15,494

 

YoY Growth Rate:

 

2.1

%

 

 

-2.7

%

 

 

 

 

 

 

 

 

Company (Consolidated)

 

$

426,623

 

$

3,457

 

$

423,166

 

YoY Growth Rate:

 

23.7

%

 

 

25.4

%

 

Operating Income

 

 

 

 

 

GAAP
Operating
Income

 

Non-GAAP
Operating
Income
Adjustments

 

Non-GAAP
Operating
Income

 

Non-GAAP
Operating
Income
Contribution
from AHFS/WD

 

Non-GAAP
Operating
Income
(excluding
AHFS/WD)

 

CMS

 

 

 

$

34,402

 

$

4,791

 

$

39,193

 

$

 

$

39,193

 

 

 

Operating Margin:

 

10.0

%

 

 

11.4

%

 

 

11.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CGS

 

 

 

$

1,508

 

$

 

$

1,508

 

$

(619

)

$

2,127

 

 

 

Operating Margin:

 

4.7

%

 

 

4.7

%

 

 

6.9

%

CTS

 

 

 

$

1,013

 

$

3,300

 

$

4,313

 

$

(56

)

$

4,369

 

 

 

Operating Margin:

 

3.0

%

 

 

12.9

%

 

 

13.0

%

CSS

 

 

 

$

(313

)

$

2,128

 

$

1,815

 

$

25

 

$

1,790

 

 

 

Operating Margin:

 

-1.7

%

 

 

10.1

%

 

 

11.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

 

$

36,610

 

$

10,219

 

$

46,829

 

$

(650

)

$

47,479

 

 

 

Operating Margin:

 

8.6

%

 

 

11.0

%

 

 

11.2

%

 

 

Segments Defined: CMS (Customer Management Services), CGS (Customer Growth Services), CTS (Customer Technology Services), CSS (Customer Strategy Services)

  

Non-GAAP AHFS/WD Defined: Excludes from revenue and operating income i) assets held for sale and wind-down, and ii) restructuring charges.

  

Non-GAAP AHFS/WD Reconciliation (Excluding Assets Held For Sale and Wind-down) & Year-over-Year (YoY) Growth Rate Comparison

 

U.S. Dollars in Thousands

  

FOURTH QUARTER

(twelve months end, December 31, 2017)

 

Revenue

 

 

 

GAAP Revenue

 

Non-GAAP
Revenue
Contribution
from
AHFS/WD

 

Non-GAAP
Revenue
(excluding
AHFS/WD)

 

CMS

 

$

1,141,760

 

$

 

$

1,141,760

 

YoY Growth Rate:

 

23.5

%

 

 

23.5

%

 

 

 

 

 

 

 

 

CGS

 

$

128,698

 

$

4,430

 

$

124,268

 

YoY Growth Rate:

 

-8.7

%

 

 

-8.1

%

CTS

 

$

138,581

 

$

6,780

 

$

131,801

 

YoY Growth Rate:

 

-1.9

%

 

 

8.5

%

CSS

 

$

68,326

 

$

8,858

 

$

59,468

 

YoY Growth Rate:

 

-0.5

%

 

 

-2.6

%

 

 

 

 

 

 

 

 

Company (Consolidated)

 

$

1,477,365

 

$

20,068

 

$

1,457,297

 

YoY Growth Rate:

 

15.8

%

 

 

17.3

%

 

Operating Income

 

 

 

 

 

GAAP
Operating
Income

 

Non-GAAP
Operating
Income
Adjustments

 

Non-GAAP
Operating
Income

 

Non-GAAP
Operating
Income
Contribution
from AHFS/WD

 

Non-GAAP
Operating
Income
(excluding
AHFS/WD)

 

CMS

 

 

 

$

78,206

 

$

14,348

 

$

92,554

 

$

 

$

92,554

 

 

 

Operating Margin:

 

6.8

%

 

 

8.1

%

 

 

8.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CGS

 

 

 

$

7,803

 

$

 

$

7,803

 

$

(1,061

)

$

8,864

 

 

 

Operating Margin:

 

6.1

%

 

 

6.1

%

 

 

7.1

%

CTS

 

 

 

$

12,047

 

$

3,477

 

$

15,524

 

$

472

 

$

15,052

 

 

 

Operating Margin:

 

8.7

%

 

 

11.2

%

 

 

11.4

%

CSS

 

 

 

$

2,434

 

$

2,162

 

$

4,596

 

$

(1,435

)

$

6,031

 

 

 

Operating Margin:

 

3.6

%

 

 

6.7

%

 

 

10.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

 

$

100,489

 

$

19,987

 

$

120,477

 

$

(2,024

)

$

122,501

 

 

 

Operating Margin:

 

6.8

%

 

 

8.2

%

 

 

8.4

%

 

Segments Defined: CMS (Customer Management Services), CGS (Customer Growth Services), CTS (Customer Technology Services), CSS (Customer Strategy Services)

  

Non-GAAP AHFS/WD Defined: Excludes from revenue and operating income i) assets held for sale and wind-down, and ii) restructuring charges.