0001104659-20-091473.txt : 20200806 0001104659-20-091473.hdr.sgml : 20200806 20200806163116 ACCESSION NUMBER: 0001104659-20-091473 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20200805 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20200806 DATE AS OF CHANGE: 20200806 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TTEC Holdings, Inc. CENTRAL INDEX KEY: 0001013880 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-HELP SUPPLY SERVICES [7363] IRS NUMBER: 841291044 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11919 FILM NUMBER: 201082197 BUSINESS ADDRESS: STREET 1: 9197 S PEORIA STREET CITY: ENGLEWOOD STATE: CO ZIP: 80112 BUSINESS PHONE: 303-397-8100 MAIL ADDRESS: STREET 1: 9197 S PEORIA STREET CITY: ENGLEWOOD STATE: CO ZIP: 80112 FORMER COMPANY: FORMER CONFORMED NAME: TELETECH HOLDINGS INC DATE OF NAME CHANGE: 19960509 8-K 1 tm2026415d1_8k.htm FORM8-K
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 5, 2020

 

TTEC Holdings, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware 001-11919 84-1291044
(State or other jurisdiction (Commission file (IRS Employer
of incorporation) number) Identification Number)

 

9197 S. Peoria Street, Englewood, CO 80112-5833

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: 303-397-8100

 

Not Applicable

(Former name or former address if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common stock of TTEC Holdings, Inc., $0.01 par value per share TTEC NASDAQ

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On August 5, 2020, TTEC Holdings, Inc. (the “Company”) issued a press release announcing its financial results for its second quarter ended June 30, 2020.

 

A copy of the August 5, 2020 press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

 

Item 7.01. Regulation FD Disclosure.

 

On August 5, 2020, TTEC Digital, LLC (“TTEC Digital”), a subsidiary of the Company, agreed to acquire VoiceFoundry, an Amazon Connect cloud contact center services global partner (the “Transaction”). The Transaction will close in two phases, with the acquisition of VoiceFoundry’s US and European operations closing contemporaneously with the signing of the purchase agreement and the acquisition of its Australian and ASEAN operations closing as soon as practicable following the clearance by the Australian Foreign Investment Review Board.

 

On August 5, 2020, the Company issued a press release announcing the acquisition, a copy of which is furnished as Exhibit 99.2 to this Current Report on Form 8-K.

 

In accordance with General Instruction B.2 of Form 8-K, the information in this report, including the exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act, as amended (the “Exchange Act”), or otherwise subject to liability under such section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

 

Item 9.01.   Financial Statements and Exhibits

 

(d)  Exhibits.

 

EXHIBIT INDEX

 

Exhibit No.   Description
99.1   Press release announcing financial results for second quarter ended June 30, 2020
99.2   Press Release announcing VoiceFoundry acquisition
104   Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

 

SIGNATURE

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  TTEC Holdings, Inc.(Registrant)

 

     
Date: August 6, 2020 By: /s/ Regina M. Paolillo
   

Regina M. Paolillo

Chief Financial Officer

 

 

 

EX-99.1 2 tm2026415d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

TTEC Announces Record Second Quarter 2020

Financial Results

 

Revenue was $453.1 Million, Representing 15.4 Percent Growth

Operating Income was $49.0 Million or 10.8 Percent of Revenue

($49.8 Million or 11.0 Percent Non-GAAP)

Net Income was $31.3 Million ($35.2 Million Non-GAAP)

Adjusted EBITDA was $71.0 Million or 15.7 Percent of Revenue

Fully Diluted EPS was $0.67 ($0.75 Non-GAAP)

 

Signs Record Bookings of $214 Million

Reinstates and Raises Outlook for Full Year 2020

 

DENVER, August 5, 2020 – TTEC Holdings, Inc. (NASDAQ: TTEC), a leading global Customer Experience as a Service (CXaaS) partner for many of the world’s most iconic and disruptive brands, today announced financial results for the second quarter and six months ended June 30, 2020.

 

“Our record financial results for the second quarter reflect heightened demand for digitized and virtualized CX solutions," commented Ken Tuchman, chairman and chief executive officer of TTEC. “Our ability to rapidly enable clients to substitute person-to-person engagement with an authentic digitized and virtualized customer experience has never been more essential. Our business performance underscores the agility and market differentiation in our technology rich customer experience-as-a-service (CXaaS) offerings.”

 

Tuchman continued, “TTEC provides everything it takes for large commercial enterprise and government organizations to operate virtually, automate processes, and successfully enable digital customer experience. We expect our topline momentum to continue to benefit from current market trends including a growing demand for digitization and virtualization, an increasingly compressed time to digital adoption and a shift toward ubiquitous engagement for businesses and consumers.”

 

“I’m also thrilled about TTEC Digital’s strategic acquisition of VoiceFoundry, a leading global Amazon Connect partner. VoiceFoundry provides additional speed, agility, and optionality to our Humanify™ Cloud platform, expanding our CX Ecosystem with Amazon’s cloud-first, best-of-breed solutions that will accelerate digital CX transformation for our clients,” concluded Tuchman.

 

SECOND QUARTER 2020 FINANCIAL HIGHLIGHTS

 

Revenue

 

Second quarter 2020 GAAP revenue increased 15.4 percent to $453.1 million compared to $392.5 million in the prior year period, or 16.3 percent growth in constant currencies.

Foreign exchange had a $3.5 million negative impact on revenue in the second quarter 2020.

 

Investor Relations Contact

Paul Miller

+1.303.397.8641

Public Relations Contact

Nick Cerise

+1.303.397.8331

Address

9197 South Peoria Street

Englewood, CO 80112

Contact

ttec.com

+1.800.835.3832

 

 

 

 

 

Income from Operations

 

Second quarter 2020 GAAP income from operations was $49.0 million, or 10.8 percent of revenue, compared to $22.9 million, or 5.8 percent of revenue in the prior year period.

Second quarter 2020 Non-GAAP income from operations, excluding $0.8 million in restructuring charges, was $49.8 million or 11.0 percent of revenue versus 6.5 percent for the prior year period.

Foreign exchange had a $0.5 million positive impact on income from operations in the second quarter 2020.

 

Adjusted EBITDA

 

Second quarter 2020 Non-GAAP Adjusted EBITDA was $71.0 million, or 15.7 percent of revenue, compared to $44.8 million, or 11.4 percent of revenue in the prior year period.

 

Earnings Per Share

 

Second quarter 2020 GAAP fully diluted earnings per share was $0.67 compared to $0.25 for the same period last year.

Second quarter 2020 Non-GAAP fully diluted earnings per share was $0.75 compared to $0.34 in the prior year period.

 

Bookings

 

During the second quarter 2020, TTEC signed an estimated $214 million in annualized contract value. Bookings were diversified across segments, verticals, and geographies and included programs related to pandemic relief and support efforts.

 

STRONG CASH FLOW AND BALANCE SHEET FUND INVESTMENTS AND DIVIDENDS

 

Cash flow from operations in the second quarter 2020 was $43.1 million compared to $41.3 million for the second quarter 2019.

Capital expenditures in the second quarter 2020 were $15.1 million compared to $15.2 million for the second quarter 2019.

As of June 30, 2020, TTEC had cash and cash equivalents of $482.3 million and debt of $714.0 million, resulting in a net debt position of $231.7 million. This compares to a net debt position of $172.8 million for the same period 2019. The increased cash and debt at June 30, 2020 was primarily related to precautionary measures, taken late in the first quarter in response to potential COVID-19 risks, to proactively increase liquidity by drawing down a portion of the revolving credit facility.

As of June 30, 2020, TTEC had approximately $195.0 million of additional borrowing capacity available under its revolving credit facility compared to $510.0 million for the same period 2019.

Paid a 34 cent per share, or $15.8 million, semi-annual dividend on April 16, 2020, an approximate 6.3 percent increase over the dividend paid in October 2019 and a 13.3 percent increase over the April 2019 dividend.

 

Investor Relations Contact

Paul Miller

+1.303.397.8641

Public Relations Contact

Nick Cerise

+1.303.397.8331

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 two segments: TTEC Digital (Digital) and TTEC Engage (Engage). Financial highlights for the segments are provided below.

 

TTEC Digital – Design, build and operate tech-enabled, insight-driven CX solutions

 

Second quarter 2020 GAAP revenue for TTEC Digital was $77.1 million, compared to $78.5 million for the year ago period. Revenue in the cloud and related systems integration collectively grew 31.8 percent over the year ago period. The slight decline in total revenue is attributable to the exit of certain non-core consulting practices and reduction in product and managed service volumes as clients increasingly pivot to Digital’s cloud-based offerings.

Income from operations was $14.4 million or 18.6 percent of revenue compared to operating income of $7.7 million or 9.8 percent of revenue for the prior year period.

Second quarter 2020 Non-GAAP income from operations was $14.5 million, or 18.8 percent of revenue compared to operating income of $9.7 million or 12.4 percent of revenue in the prior year period.

Second quarter 2020 Non-GAAP Adjusted EBITDA was $18.7 million, or 24.2 percent of revenue, compared to $13.9 million, or 17.7 percent of revenue in the prior year period.

 

TTEC Engage – Digitally-enabled customer care, acquisition, and fraud prevention services

 

Second quarter 2020 GAAP revenue for TTEC Engage increased 19.7 percent to $375.9 million from $314.0 million for the year ago period. Revenue growth was 20.8 percent in constant currencies. Income from operations was $34.6 million or 9.2 percent of revenue compared to operating income of $15.2 million or 4.8 percent of revenue for the prior year period.

Second quarter 2020 Non-GAAP income from operations was $35.3 million, or 9.4 percent of revenue compared to operating income of $15.7 million or 5.0 percent of revenue in the prior year period.

Second quarter 2020 Non-GAAP Adjusted EBITDA was $52.3 million, or 13.9 percent of revenue, compared to $30.9 million, or 9.8 percent of revenue in the prior year period.

Foreign exchange had a $3.3 million negative impact on revenue and $0.5 million positive impact on income from operations in the second quarter 2020.

 

BUSINESS OUTLOOK

 

“We remain intensely focused on the health and safety of our people and partners, our clients’ success as they navigate the macro challenges inherent in COVID-19, and managing our near and long-term priorities to deliver sustainable long-term profitable growth,” commented Regina Paolillo, chief financial and administrative officer of TTEC. “We could not be more satisfied with our first half results, with the strength of our client relationships, and the relevancy of CX cloud, omnichannel, intelligent automation and virtual and digital technologies. With a strong revenue backlog, new business pipeline, and solid balance sheet in hand for 2020, we are restoring and increasing our original outlook and can now turn our attention to 2021 and beyond, including both organic and inorganic investments that will enable continued high single-digit topline and double-digit profit growth.”

 

Investor Relations Contact

Paul Miller

+1.303.397.8641

Public Relations Contact

Nick Cerise

+1.303.397.8331

Address

9197 South Peoria Street

Englewood, CO 80112

Contact

ttec.com

+1.800.835.3832

 

 

 

 

 

Our reinstated full-year 2020 outlook, which includes a modest contribution from the VoiceFoundry acquisition and excludes restructuring and impairment charges, is as follows:

 

Revenue between $1.766 and $1.784 billion, an increase of 7.4 and 8.5 percent over the prior year.

 

Operating Income margins between 9.1 and 9.2 percent.

 

Margins of approximately 13.8 percent for TTEC Digital and 8.2 percent for TTEC Engage

 

Adjusted EBITDA margins between 14.2 and 14.3 percent.

 

Margins of approximately 19.7 percent for TTEC Digital and 13.2 percent for TTEC Engage

 

Earnings Per Share between $2.37 and $2.43.

 

Capital expenditures are estimated to be between 3.1 and 3.3 percent of revenue, of which approximately 70 percent is growth oriented.

 

Effective tax rate for the full year is estimated between 23 and 27 percent.

 

Diluted share count for the full year is estimated between 46.9 and 47.1 million.

 

We estimate the second half total company 2020 mix as follows:

 

Revenue: 51 percent third quarter, 49 percent fourth quarter
Operating Income: 52 percent third quarter, 48 percent fourth quarter
Adjusted EBITDA: 51 percent third quarter, 49 percent fourth quarter
Earnings Per Share: 53 percent third quarter, 47 percent fourth quarter

 

We estimate the Digital - Engage segment 2020 mix as follows:

 

Revenue: 17 percent Digital, 83 percent Engage, of which 24 percent of Digital and 25 percent of Engage in the fourth quarter, respectively.

Operating Income: 26 percent Digital, 74 percent Engage, of which 19 percent of Digital and 21 percent of Engage in the fourth quarter, respectively.

Adjusted EBITDA: 23 percent Digital, 77 percent Engage, of which 21 percent of Digital and 24 percent of Engage in the fourth quarter, respectively.

 

NON-GAAP FINANCIAL MEASURES

 

This press release contains a discussion of certain Non-GAAP financial measures that TTEC includes to allow investors and analysts to measure, analyze and compare its financial condition and results of operations in a meaningful and consistent manner. A reconciliation of these Non-GAAP financial measures can be found in the tables accompanying this press release.

 

GAAP metrics are presented in accordance with Generally Accepted Accounting Principles.

 

Non-GAAP - As reflected in the attached reconciliation table, the definition of Non-GAAP may exclude from operating income, EBITDA, net income and earnings per share restructuring and impairment charges, among other items.

 

Investor Relations Contact

Paul Miller

+1.303.397.8641

Public Relations Contact

Nick Cerise

+1.303.397.8331

Address

9197 South Peoria Street

Englewood, CO 80112

Contact

ttec.com

+1.800.835.3832

 

 

 

 

 

About TTEC

 

TTEC Holdings, Inc. (NASDAQ: TTEC) is a leading digital customer experience (CX) technology and services company focused on the design, implementation, and delivery of transformative solutions for many of the world’s most iconic and disruptive brands and government agencies. 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, fraud prevention and detection, and content moderation services. Founded in 1982, the Company's 51,700 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

 

FORWARD-LOOKING STATEMENTS

 

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of TTEC Holding, Inc.’s management and are subject to significant risks and uncertainties. Specifically, we would like for you to focus on risks related to COVID-19 global pandemic and the various government mandates designed to contain the pandemic, and how these risks may impact our business in the short and longer term; the risks related to our strategy execution; our ability to innovate and introduce technologies that are sufficiently disruptive to allow us to maintain and grow our market share; cybersecurity; consolidation activities undertaken by our clients; geographic concentration of our brick and mortar delivery platform and our global footprint; changes in laws that impact our business and our ability to comply with those and other laws governing our operations; the reliability of our information technology infrastructure and our ability to consistently deliver uninterrupted service to our clients; the need to forecast demand for services accurately and the impact of such forecasts on our capacity utilization; our ability to attract and retain qualified and skilled personnel at a price point that we can afford and our clients are willing to pay; our M&A activity, including our ability to identify, acquire and properly integrate acquired businesses in accordance with our strategy; and our equity structure including our controlling shareholder risk, the limited market float of our stock, and the potential volatility of our stock price resulting therefrom. Risk Factors that could cause TTEC’s results to differ materially from those described in the forward-looking statements can be found in TTEC’s Quarterly Report on Form 10-Q for the quarter ended on June 30, 2020 and Annual Report on Form 10-K for the year ended December 31, 2019, which has been filed with the U.S. Securities and Exchange Commission (the "SEC") and is available on TTEC’s website www.ttec.com, and on the SEC's public website at www.sec.gov. TTEC Holdings, Inc. does not undertake to update any forward-looking statements.

 

#

 

Investor Relations Contact

Paul Miller

+1.303.397.8641

Public Relations Contact

Nick Cerise

+1.303.397.8331

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)

(unaudited)

 

   Three months ended   Six months ended 
   June 30,   June 30, 
   2020   2019   2020   2019 
Revenue  $453,081   $392,515   $885,294   $786,871 
                     
Operating Expenses:                    
Cost of services   337,306    299,237    658,863    592,571 
Selling, general and administrative   47,360    50,864    97,194    100,584 
Depreciation and amortization   18,660    17,050    37,532    33,793 
Restructuring and integration charges, net   793    428    1,331    1,389 
Impairment losses   -    2,063    696    3,569 
Total operating expenses   404,119    369,642    795,616    731,906 
                     
Income From Operations   48,962    22,873    89,678    54,965 
                     
Other income (expense), net   (4,374)   (1,914)   (10,206)   (6,064)
                     
Income Before Income Taxes   44,588    20,959    79,472    48,901 
                     
Provision for income taxes   (11,039)   (7,345)   (21,238)   (14,811)
                     
Net Income   33,549    13,614    58,234    34,090 
                     
Net income attributable to noncontrolling interest   (2,224)   (1,816)   (5,375)   (3,290)
                     
Net Income Attributable to TTEC Stockholders  $31,325   $11,798   $52,859   $30,800 
                     
Net Income Per Share                    
                     
Basic  $0.72   $0.29   $1.25   $0.74 
                     
Diluted  $0.72   $0.29   $1.24   $0.73 
                     
Net Income Per Share Attributable to TTEC Stockholders                    
                     
Basic  $0.67   $0.25   $1.14   $0.67 
                     
Diluted  $0.67   $0.25   $1.13   $0.66 
                     
Income From Operations Margin   10.8%   5.8%   10.1%   7.0%
Net Income Margin   7.4%   3.5%   6.6%   4.3%
Net Income Attributable to TTEC Stockholders Margin   6.9%   3.0%   6.0%   3.9%
Effective Tax Rate   24.8%   35.0%   26.7%   30.3%
                     
Weighted Average Shares Outstanding                    
Basic   46,619    46,318    46,559    46,261 
Diluted   46,861    46,684    46,838    46,636 

 

 

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(In thousands)

(unaudited)

 

   Three months ended   Six months ended 
   June 30,   June 30, 
   2020   2019   2020   2019 
Revenue:                    
TTEC Digital  $77,143   $78,519   $154,699   $144,372 
TTEC Engage   375,938    313,996    730,595    642,499 
Total  $453,081   $392,515   $885,294   $786,871 
                     
Income From Operations:                    
TTEC Digital  $14,376   $7,709   $24,634   $15,468 
TTEC Engage   34,586    15,164    65,044    39,497 
Total  $48,962   $22,873   $89,678   $54,965 

 

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

 

   June 30,   December 31, 
   2020   2019 
ASSETS          
Current assets:          
Cash and cash equivalents  $482,255   $82,407 
Accounts receivable, net   353,289    331,096 
Other current assets   123,308    136,322 
Total current assets   958,852    549,825 
           
Property and equipment, net   177,099    176,633 
Other assets   631,038    650,330 
           
Total assets  $1,766,989   $1,376,788 
           
LIABILITIES AND EQUITY          
Total current liabilities  $344,790   $363,289 
Other long-term liabilities   920,246    532,846 
Redeemable noncontrolling interest   54,026    48,923 
Total equity   447,927    431,730 
           
Total liabilities and equity  $1,766,989   $1,376,788 
           

 

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

(In thousands, except per share data)

(unaudited)

 

   Three months ended   Six months ended 
   June 30,   June 30, 
   2020   2019   2020   2019 
Revenue  $453,081   $392,515   $885,294   $786,871 
                     
Reconciliation of Adjusted EBITDA:                    
                     
Net Income  $33,549   $13,614   $58,234   $34,090 
Interest income   (491)   (429)   (855)   (769)
Interest expense   3,104    4,208    12,696    9,496 
Provision for income taxes   11,039    7,345    21,238    14,811 
Depreciation and amortization   18,660    17,050    37,532    33,793 
Asset impairment, restructuring and integration charges   793    2,491    2,027    4,958 
Gain on sale of business units   (142)   (442)   (388)   (750)
Changes in acquisition contingent consideration   (1,084)   (2,424)   (4,349)   (2,424)
Loss on disolution of subsidiary   2,467    -    2,467    - 
Equity-based compensation expenses   3,057    3,366    5,976    6,534 
Adjusted EBITDA  $70,952   $44,779   $134,578   $99,739 
                     
Reconciliation of Free Cash Flow:                    
                     
Cash Flow From Operating Activities:                    
Net income  $33,549   $13,614   $58,234   $34,090 
Adjustments to reconcile net income to net cash                    
provided by operating activities:                    
Depreciation and amortization   18,660    17,050    37,532    33,793 
Other   (9,096)   10,639    9,512    53,383 
Net cash provided by operating activities   43,113    41,303    105,278    121,266 
                     
Less - Total Cash Capital Expenditures   15,102    15,228    31,915    28,428 
                     
Free Cash Flow  $28,011   $26,075   $73,363   $92,838 
                     
Reconciliation of Non-GAAP Income from Operations:                    

                    
Income from Operations  $48,962   $22,873   $89,678   $54,965 
Restructuring charges, net   793    428    1,331    1,389 
Impairment losses   -    2,063    696    3,569 
                     
Non-GAAP Income from Operations  $49,755   $25,364   $91,705   $59,923 
                     
Non-GAAP Income from Operations Margin   11.0%   6.5%   10.4%   7.6%
                     
Reconciliation of Non-GAAP EPS:                    
                     
Net Income  $33,549   $13,614   $58,234   $34,090 
Add:Asset restructuring and impairment charges   793    2,491    2,027    4,958 
Add:Interest charge related to future purchase of remaining 30% for Motif acquisition   (204)   469    6,273    1,776 
Less:Changes in acquisition contingent consideration   (1,084)   (2,424)   (4,349)   (2,424)
Less:Gain on sale of business units   (142)   (442)   (388)   (750)
Add:Loss on disoluion of subsidiary   2,467    -    2,467    - 
Add:Changes in valuation allowance, return to provision adjustments and other, and tax effects of items separately disclosed above   (192)   2,134    941    1,834 
                     
Non-GAAP Net Income  $35,187   $15,842   $65,205   $39,484 
                     
Diluted shares outstanding   46,861    46,684    46,838    46,636 
                     
Non-GAAP EPS  $0.75   $0.34   $1.39   $0.85 

 

Reconciliation of Adjusted EBITDA by Segment :  TTEC Engage   TTEC Digital   TTEC Engage   TTEC Digital 
                                 
   Q2 20   Q2 19   Q2 20   Q2 19   YTD 20   YTD 19   YTD 20   YTD 19 
Earnings before Income Taxes  $30,190   $13,166   $14,398   $7,793   $54,772   $33,299   $24,700   $15,605 
Interest income / expense, net   2,635    3,769    (22)   9    11,909    8,719    (67)   6 
Depreciation and amortization   15,382    13,814    3,278    3,235    30,966    28,249    6,566    5,543 
Asset impairment, restructuring and integration charges   679    489    114    2,003    1,010    2,608    1,016    2,350 
Gain on sale of business units   (142)   (442)   -    -    (388)   (750)   -    - 
Changes in acquisition contingent consideration   (1,084)   (2,424)   -    -    (4,349)   (2,424)   -    - 
Loss on disolution of subsidiary   2,467    -    -    -    2,467    -    -    - 
Equity-based compensation expenses   2,128    2,515    929    852    4,198    4,872    1,778    1,663 
                                         
Adjusted EBITDA  $52,255   $30,887   $18,697   $13,892   $100,585   $74,573   $33,993   $25,167 

 

 

EX-99.2 3 tm2026415d1_ex99-2.htm EXHIBIT 99.2

 

Exhibit 99.2

 

 

 

TTEC Signs Agreement to Acquire VoiceFoundry, Setting the Foundation for Significant Future Growth with Amazon Connect

 

Acquisition adds Amazon Connect, one of AWS’s fastest-growing services, to TTEC’s Humanify Cloud CX Ecosystem

 

DENVER, August 5, 2020 -- TTEC Holdings, Inc. (NASDAQ: TTEC) a leading global Customer Experience as a Service (CXaaS) partner for many of the world’s most iconic and disruptive brands, announced today that it agreed to acquire VoiceFoundry, a global partner of Amazon Web Services, creating an end-to-end CX delivery solution for Amazon Connect. The U.S. and European parts of the acquisition closed today, with the Australian and ASEAN acquisition expected to close pending regulatory approvals.

 

“By leveraging Amazon Connect, CX leaders can increase the ease and speed with which businesses improve customer service,” said Pasquale DeMaio, General Manager, Amazon Connect, Amazon Web Services, Inc. “We are delighted to see TTEC’s investment in VoiceFoundry and their commitment to Amazon Connect, and we look forward to continue working together to offer enhanced customer experience to our shared customers.”

 

The TTEC acquisition of VoiceFoundry:

 

 • Adds Amazon Connect to TTEC’s Humanifytm Cloud, providing TTEC’s current and future clients with the optionality of AWS’s contact center capabilities using a unified per user per month (PUPM) offering for access to Humanify’s enhanced CX applications to complement AWS’s services.
   
 • Extends TTEC’s Humanifytm Cloud to Amazon Connect. Provides clients access to an enterprise-grade API integration and deployment platform, including Humanify’s intelligent administration, orchestration, analytics, and automation solutions, that enables rapid deployment, reduces risk and improves speed to value at global scale.
   
 • Will leverage the global scale and enterprise client footprint of the TTEC Engage business to offer the enhanced CXaaS offering while TTEC Digital maintains separate and dedicated AWS and Cisco sales teams focused on driving client value through the Amazon’s and Cisco’s partner ecosystem.
   
 • TTEC’s Humanifytm Cloud will now seamlessly leverage the power of Salesforce’s Service Cloud + Amazon Connect to offer out-of-the-box contact center solutions sold by Salesforce.

 

The acquisition not only adds Amazon Connect to TTEC’s Humanifytm CX Marketplace, but it also extends TTEC Digital’s Humanifytm Cloud Integration and API platform to AWS, providing TTEC customers and prospects with cloud contact center optionality and a unified per user per month (PUPM) offering for access to over 50 enhanced CX applications to complement AWS’s services.

 

   

address

9197 South Peoria Street

Englewood, CO 80112

contact

Liesl Perez

liesl.perez@ttec.com

+1.303.551.1417

 

 

 

 

 

 

“There is a fundamental shift happening across the industry. Rather than relying directly on customer experience SaaS providers, clients are turning to CX orchestrators and journey partners to build end-to-end customer-centric solutions in the cloud,” says Jonathan Lerner, President of TTEC Digital. “VoiceFoundry’s addition to TTEC Digital provides speed, agility, and expands our CX Marketplace with AWS’s cloud-first solutions that can accelerate digital CX transformation for our clients.”

 

VoiceFoundry is an industry leader in deploying Amazon Connect as well as other AWS services that focus on creating intelligent interactions across all engagement channels. VoiceFoundry is uniquely focused on helping large enterprise clients improve customer engagement while maximizing the benefits of AWS at scale. The acquisition adds 50+ blue chip companies to TTEC’s global account base, primarily in the public sector, e-commerce, financial services, travel, healthcare, and insurance industries.

 

VoiceFoundry CEO John Marino, who will join TTEC as Group Vice President for our AWS practice, emphasized the strength of the combined platforms by stating, “In TTEC we found the perfect partner for delivering end-to-end CX solutions that allow us to better design, build and operate amazing customer and employee experiences for clients at large enterprise scale. Our combined strengths help enhance the overall offering to our customers. TTEC adds depth to our managed services accounts without slowing down the speed at which VoiceFoundry can implement Amazon Connect, which is one of AWS’s fastest-growing services.”

 

Based in Tulsa, Okla. with offices in the U.K., Singapore, and Australia, VoiceFoundry’s expertise is focused on artificial intelligence (AI) and natural language automation, chatbots, CTI/CRM, enterprise integration, user-experience design, analytics, omnichannel engagement, and workforce optimization.

 

Additional Resources: 

 

• Learn how TTEC Digital can transform customer experiences
 Download your Effortless Experiences Toolkit
• Check out TTEC’s prestigious list of awards and recognition, including recent recognition as a Leader in Forrester’s Omnichannel Wave

 

Tweet This: @TTEC acquires @VoiceFoundry to deliver effortless cloud #CX on Amazon Connect. #AI and natural language #automation, #chatbots, CTI/CRM, UX design, #analytics and workforce optimization combined with best-in-class service options delivering amazing experiences #CX Cloud (add URL with Press Release URL)

 

About TTEC:

 

TTEC Holdings, Inc. (NASDAQ: TTEC) is a leading digital global customer experience technology and services company focused on the design, implementation, and delivery of transformative solutions 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, fraud prevention and detection, and content moderation services. Founded in 1982, the company’s 50,000 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.

 

About VoiceFoundry:

 

VoiceFoundry is passionate about customer experience. We specialize in the delivery of Amazon Web Services (AWS) contact center solutions and are uniquely focused on helping businesses improve customer engagement, while maximizing the benefits of the cloud. Our expertise is focused on AI & natural language automation, CTI, enterprise integration, user experience design, and workforce management and optimization. For more information, visit us at www.voicefoundry.com.

 

Investor Contact

 

Paul Miller

 

303.397.8641

 

   

address

9197 South Peoria Street

Englewood, CO 80112

contact

Liesl Perez

liesl.perez@ttec.com

+1.303.551.1417

 

 

 

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DE 001-11919 84-1291044 9197 S. Peoria Street Englewood CO 80112-5833 303 397-8100 false false false false Common stock of TTEC Holdings, Inc., $0.01 par value per share TTEC NASDAQ false XML 9 R1.htm IDEA: XBRL DOCUMENT v3.20.2
Cover
Aug. 05, 2020
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Aug. 05, 2020
Entity File Number 001-11919
Entity Registrant Name TTEC Holdings, Inc.
Entity Central Index Key 0001013880
Entity Tax Identification Number 84-1291044
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 9197 S. Peoria Street
Entity Address, City or Town Englewood
Entity Address, State or Province CO
Entity Address, Postal Zip Code 80112-5833
City Area Code 303
Local Phone Number 397-8100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock of TTEC Holdings, Inc., $0.01 par value per share
Trading Symbol TTEC
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
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