EX-99.1 2 tm2229874d2_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

TTEC Announces Third Quarter 2022

Financial Results

 

Third Quarter 2022

 

Revenue was $592.5 Million

Operating Income was $35.6 Million or 6.0 Percent of Revenue

($50.2 Million or 8.5 Percent of Revenue Non-GAAP)

Net Income was $25.0 Million or 4.2 Percent of Revenue

($35.0 Million or 5.9 Percent of Revenue Non-GAAP)

Adjusted EBITDA was $72.2 Million or 12.2 Percent of Revenue

Fully Diluted EPS was $0.53 ($0.74 Non-GAAP)

 

Signs Bookings of $200 Million

Reiterates Outlook for Full Year 2022

 

DENVER, November 9, 2022 – TTEC Holdings, Inc. (NASDAQ:TTEC), one of the largest, global CX (customer experience) technology and services innovators for end-to-end digital CX solutions, announced today financial results for the third quarter, ended September 30, 2022.

 

“I’m pleased with our solid execution and results for the third quarter. We continued to accelerate our diversification strategy by expanding into new nearshore and offshore delivery locations, growing with new and embedded base clients across strategic verticals, innovating in our comprehensive portfolio of digital CX solutions, and deepening collaboration with our best-in-class CX technology partners,” commented Ken Tuchman, chairman and chief executive officer of TTEC.

 

Tuchman continued, “We also continue to strengthen our executive leadership team. We welcome digital industry leader, Dave Seybold, as CEO of TTEC Digital. In addition, Shelly Swanback, CEO of TTEC Engage, will assume expanded responsibilities as President of TTEC. With these two proven executives at my side, among many others, I am energized about the caliber of our leadership, our differentiated approach to CX, and our vision for the future.”

 

THIRD QUARTER 2022 FINANCIAL HIGHLIGHTS

 

Revenue

 

●Third quarter 2022 GAAP revenue increased 4.5 percent to $592.5 million compared to $566.7 million in the prior year period.

 

●Foreign exchange had a $14.1 million negative impact on revenue in the third quarter 2022.

 

Income from Operations

 

●Third quarter 2022 GAAP income from operations was $35.6 million, or 6.0 percent of revenue, compared to $26.0 million, or 4.6 percent of revenue in the prior year period.

 

●Non-GAAP income from operations, excluding restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, and other items, was $50.2 million or 8.5 percent of revenue versus $59.4 million or 10.5 percent for the prior year period.

 

●Foreign exchange had a $3.9 million positive impact on Non-GAAP income from operations in the third quarter 2022.

 

Investor Relations Contact Address Communications Contact
Paul Miller 9197 South Peoria Street Tim Blair
paul.miller@ttec.com Englewood, CO 80112 tim.blair@ttec.com
+1.303.397.8641   +1.303.397.9267

 

 

 

 

 

 

 

Adjusted EBITDA

 

●Third quarter 2022 Adjusted EBITDA was $72.2 million, or 12.2 percent of revenue, compared to $78.7 million, or 13.9 percent of revenue in the prior year period.

 

Earnings Per Share

 

●Third quarter 2022 GAAP fully diluted earnings per share was $0.53 compared to $0.38 for the same period last year.

 

●Non-GAAP fully diluted earnings per share was $0.74 compared to $1.01 in the prior year period.

 

Bookings

 

●During the third quarter 2022, TTEC signed an estimated $200 million in annualized contract value compared to $171 million in the prior year period. Third quarter bookings mix was diversified across segments, verticals, and geographies.

 

STRONG CASH FLOW AND BALANCE SHEET FUND INVESTMENTS AND DIVIDENDS

 

●Cash flow from operations in the third quarter 2022 was $27.5 million compared to $42.2 million for the third quarter 2021.

 

●Capital expenditures in the third quarter 2022 were $28.8 million compared to $17.2 million for the third quarter 2021.

 

●As of September 30, 2022, TTEC had cash and cash equivalents of $172.3 million and debt of $959.2 million, resulting in a net debt position of $787 million. This compares to a net debt position of $662.9 million for the same period 2021. The increase in net debt is primarily attributable to the Faneuil public sector asset acquisition in April 2022 and capital distributions made in the second and fourth quarter of 2022.

 

●As of September 30, 2022, TTEC’s remaining borrowing capacity under its revolving credit facility was approximately $370 million compared to $390 million for the same period 2021.

 

●TTEC paid a $0.52 per share, or $24.6 million, semi-annual dividend on October 26, 2022, to shareholders of record on October 11, 2022. This dividend represents a 10.6 percent increase over the October 2021 dividend and 4.0 percent over the April 2022 dividend.

 

Investor Relations Contact Address Communications Contact
Paul Miller 9197 South Peoria Street Tim Blair
paul.miller@ttec.com Englewood, CO 80112 tim.blair@ttec.com
+1.303.397.8641   +1.303.397.9267

 

 

 

 

 

 

SEGMENT REPORTING & COMMENTARY

 

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

 

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

 

●Third quarter 2022 GAAP revenue for TTEC Digital decreased 5.0 percent to $117.9 million from $124.1 million for the year ago period. Income from operations was $8.1 million or 6.8 percent of revenue compared to operating income of $8.7 million or 7.0 percent of revenue for the prior year period.

 

●Non-GAAP income from operations was $15.9 million, or 13.5 percent of revenue compared to non-GAAP operating income of $15.6 million or 12.5 percent of revenue in the prior year period.

 

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

 

●Third quarter 2022 GAAP revenue for TTEC Engage increased 7.2 percent to $474.5 million from $442.6 million for the year ago period. Income from operations was $27.5 million or 5.8 percent of revenue compared to operating income of $17.4 million or 3.9 percent of revenue for the prior year period.

 

●Non-GAAP income from operations was $34.3 million, or 7.2 percent of revenue compared to non-GAAP operating income of $43.8 million or 9.9 percent of revenue in the prior year period.

 

●Foreign exchange had a $13.2 million negative impact on revenue and $3.5 million positive impact on non-GAAP income from operations.

 

BUSINESS OUTLOOK

 

“We are pleased with our execution and financial performance in the third quarter as we continue to navigate the dynamic macroeconomic environment alongside our clients,” commented Dustin Semach, chief financial officer of TTEC.

 

Semach continued, “Our outlook remains unchanged from last quarter and continues to account for the uncertainties surrounding the global economy. Ahead of 2023, we continue to optimize our cost structure while enhancing our offerings and delivery footprint to meet our client’s quickly evolving needs, positioning us well to capitalize on the current market opportunities. We remain committed to maximizing shareholder value through continuous technology innovation, operational excellence, and long-term profitable growth.”

 

Investor Relations Contact Address Communications Contact
Paul Miller 9197 South Peoria Street Tim Blair
paul.miller@ttec.com Englewood, CO 80112 tim.blair@ttec.com
+1.303.397.8641   +1.303.397.9267

 

 

 

 

 

 

TTEC Full Year 2022 Outlook              
   Fourth Quarter 2022  Fourth Quarter 2022   Full Year 2022  Full Year 2022 
   Guidance  Mid-Point   Guidance  Mid-Point 
Revenue  $620M — $638M  $629M  $2,405M — $2,423M  $2,414M
Non-GAAP adjusted EBITDA  $73M — $83M  $78M  $315M — $325M  $320M
Non-GAAP adjusted EBITDA margins  11.7% — 13.0%   12.4%  13.1% — 13.4%   13.2%
Non-GAAP operating income  $60M — $70M  $65M  $239M — $249M  $244M
Non-GAAP operating income margins  9.8% — 11.1%   10.4%  9.9% — 10.3%   10.1%
Interest expense, net  ($13M) — ($14M)  $(14)M  ($32M) — ($33M)  $(33)M
Effective tax rate  23% — 25%   24%  22% — 24%   23%
Diluted share count  47.3M — 47.5M   47.4M  47.3M — 47.5M   47.4M
Non-GAAP earnings per a share  $0.66 — $0.82  $0.74   $3.45 — $3.61  $3.53 
                 
Engage Full Year 2022 outlook                
   Fourth Quarter 2022   Fourth Quarter 2022   Full Year 2022   Full Year 2022 
   Guidance   Mid-Point   Guidance   Mid-Point 
Revenue  $506M — $516M  $511M  $1,943M — $1,953M  $1,948M
Non-GAAP adjusted EBITDA  $57M — $63M  $60M  $242M — $248M  $245M
Non-GAAP adjusted EBITDA margins  11.2% — 12.1%   11.7%  12.4% — 12.7%   12.6%
Non-GAAP operating income  $47M — $53M  $50M  $179M — $185M  $182M
Non-GAAP operating income margins  9.3% — 10.3%   9.8%  9.2% — 9.5%   9.3%
                 
Digital Full Year 2022 outlook                
   Fourth Quarter 2022   Fourth Quarter 2022   Full Year 2022   Full Year 2022 
   Guidance   Mid-Point   Guidance   Mid-Point 
Revenue  $114M — $122M  $118M  $462M — $470M  $466M
Non-GAAP adjusted EBITDA  $16M — $20M  $18M  $73M — $77M  $75M
Non-GAAP adjusted EBITDA margins  14.2% — 16.5%   15.4%  15.8% — 16.4%   16.1%
Non-GAAP operating income  $14M — $18M  $16M  $61M — $65M  $63M
Non-GAAP operating income margins  11.9% — 14.4%   13.2%  13.1% — 13.7%   13.4%

 

Investor Relations Contact Address Communications Contact
Paul Miller 9197 South Peoria Street Tim Blair
paul.miller@ttec.com Englewood, CO 80112 tim.blair@ttec.com
+1.303.397.8641   +1.303.397.9267

 

 

 

 

 

 

The Company has not quantitatively reconciled its guidance for Non-GAAP operating income margins, Non-GAAP adjusted EBITDA margins, or Non-GAAP earnings per share to their respective most comparable GAAP measures because certain of the reconciling items that impact these metrics, including asset impairment, restructuring and integration charges, cybersecurity incident-related costs, gains or losses on the sale of business units or other assets, equity-based compensation expense, changes in acquisition contingent consideration, depreciation and amortization expense, and provision for income taxes are dependent on the timing of future events outside of the Company’s control or cannot be reliably predicted. Accordingly, the Company is unable to provide reconciliations to GAAP operating income margins, net income margins, and diluted earnings per share without unreasonable effort. Please note that the unavailable reconciling items could significantly impact the Company’s 2022 financial results as reported under GAAP.

 

NON-GAAP FINANCIAL MEASURES

 

This press release contains a discussion of certain Non-GAAP financial measures that the Company 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, equity-based compensation expenses, amortization of purchased intangibles, among other items.

 

ABOUT TTEC

 

TTEC Holdings, Inc. (NASDAQ: TTEC) is one of the largest, global CX (customer experience) technology and services innovators for end-to-end, digital CX solutions. The Company delivers leading CX technology and operational CX orchestration at scale through its proprietary cloud-based CXaaS (Customer Experience as a Service) platform.  Serving iconic and disruptive brands, TTEC's outcome-based solutions span the entire enterprise, touch every virtual interaction channel, and improve each step of the customer journey. Leveraging next gen digital and cognitive technology, the Company’s Digital business designs, builds, and operates omnichannel contact center technology, conversational messaging, CRM, automation (AI / ML and RPA), and analytics solutions.  The Company’s Engage business delivers digital customer engagement, customer acquisition and growth, content moderation, fraud prevention, and data annotation solutions. Founded in 1982, the Company’s singular obsession with CX excellence has earned it leading client NPS scores across the globe. The Company's 62,700 employees operate on six continents and bring technology and humanity together to deliver happy customers and differentiated business results. To learn more visit us at https://www.ttec.com

 

Investor Relations Contact Address Communications Contact
Paul Miller 9197 South Peoria Street Tim Blair
paul.miller@ttec.com Englewood, CO 80112 tim.blair@ttec.com
+1.303.397.8641   +1.303.397.9267

 

 

 

 

 

 

FORWARD-LOOKING STATEMENTS

 

This earnings release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995, relating to our operations, expected financial position, results of operation, and other business matters that are based on our current expectations, assumptions, and projections with respect to the future, and are not a guarantee of performance. In this release when we use words such as “may,” “believe,” “plan,” “will,” “anticipate,” “estimate,” “expect,” “intend,” “project,” “would,” “could,” “target,” or similar expressions, or when we discuss our strategy, plans, goals, initiatives, or objectives, we are making forward-looking statements.

 

We caution you not to rely unduly on any forward-looking statements. Actual results may differ materially from those expressed in the forward-looking statements, and you should review and consider carefully the risks, uncertainties and other factors that affect our business and may cause such differences as outlined in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2021 and any subsequent filings with the U.S. Securities and Exchange Commission (the “SEC”) which are available on TTEC’s website www.ttec.com, and on the SEC's public website at www.sec.gov.  Important factors that could cause our actual results to differ materially from those indicated in the forward looking statements include, among others, the risks related to our business operations and strategy, including the risks related to our strategy execution in a competitive market; our ability to innovate and introduce technologies that are sufficiently disruptive to allow us to maintain and grow our market share; risks inherent in the reliability of our information technology systems; risks related to our information technology infrastructure’s cybersecurity in general, and criminal activity such as ransomware, other malware and data exfiltration or destruction in particular, which can impact our ability to consistently deliver uninterrupted service to our clients; our dependence on third parties for our cloud solutions; risks inherent in our transition to a work from home environment; 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; the risk related to our international operations; the risks related to legal and regulatory impact on our operations, including rapidly changing laws that regulate our and our clients’ business, such as data privacy and data protection laws, regulatory changes impacting our healthcare businesses, financial and public sector specific regulations, our ability to comply with these laws timely and cost effectively; and the cost of wage and hour litigation in the United States; the impact of the COVID-19 pandemic and post-pandemic economic and regulatory realities on our business and our clients’ business; and risks inherent in our equity structure including our controlling shareholder risk, and Delaware choice of dispute resolution risks.

 

Our forward-looking statements speak only as of the date that this release is issued. We undertake no obligation to update them, except as may be required by applicable law. Although we believe that our forward-looking statements are reasonable, they depend on many factors outside of our control and we can provide no assurance that they will prove to be correct.

 

Investor Relations Contact Address Communications Contact
Paul Miller 9197 South Peoria Street Tim Blair
paul.miller@ttec.com Englewood, CO 80112 tim.blair@ttec.com
+1.303.397.8641   +1.303.397.9267

 

 

 

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)

 

   Three months ended   Nine months ended 
   September 30,   September 30, 
   2022   2021   2022   2021 
Revenue  $592,453   $566,734   $1,785,429   $1,660,747 
                     
Operating Expenses:                    
Cost of services   450,454    447,786    1,361,179    1,236,769 
Selling, general and administrative   75,226    67,426    206,831    181,483 
Depreciation and amortization   27,117    25,280    80,061    70,655 
Restructuring charges, net   1,113    485    4,261    2,612 
Impairment losses   2,939    (268)   13,299    3,949 
Total operating expenses   556,849    540,709    1,665,631    1,495,468 
                     
Income From Operations   35,604    26,025    119,798    165,279 
Other income (expense), net   (6,100)   (45)   (8,218)   (4,570)
Income Before Income Taxes   29,504    25,980    111,580    160,709 
Provision for income taxes   (4,489)   (7,939)   (19,797)   (35,271)
Net Income   25,015    18,041    91,783    125,438 
Net income attributable to noncontrolling interest   (2,766)   (3,606)   (10,896)   (13,216)
Net Income Attributable to TTEC Stockholders  $22,249   $14,435   $80,887   $112,222 
                     
Net Income Per Share                    
Basic  $0.53   $0.38   $1.95   $2.68 
Diluted  $0.53   $0.38   $1.94   $2.65 
Net Income Per Share Attributable to TTEC Stockholders                    
Basic  $0.47   $0.31   $1.72   $2.39 
Diluted  $0.47   $0.30   $1.71   $2.37 
                     
Income From Operations Margin   6.0%   4.6%   6.7%   10.0%
Net Income Margin   4.2%   3.2%   5.1%   7.6%
Net Income Attributable to TTEC Stockholders Margin   3.8%   2.5%   4.5%   6.8%
Effective Tax Rate   15.2%   30.6%   17.7%   21.9%
                     
Weighted Average Shares Outstanding                    
Basic   47,207    46,984    47,087    46,857 
Diluted   47,314    47,348    47,354    47,372 

 

 

 

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(In thousands)
(unaudited)

 

   Three months ended   Nine months ended 
   September 30,   September 30, 
   2022   2021   2022   2021 
Revenue:                    
TTEC Digital  $117,938   $124,086   $348,112   $295,668 
TTEC Engage   474,515    442,648    1,437,317    1,365,079 
Total  $592,453   $566,734   $1,785,429   $1,660,747 
                     
Income From Operations:                    
TTEC Digital  $8,070   $8,670   $25,296   $22,437 
TTEC Engage   27,534    17,355    94,502    142,842 
Total  $35,604   $26,025   $119,798   $165,279 

 

 

 

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)

 

   September 30,   December 31, 
   2022   2021 
ASSETS          
Current assets:          
Cash and cash equivalents  $172,274   $158,205 
Accounts receivable, net   384,793    357,310 
Other current assets   184,018    182,472 
Total current assets   741,085    697,987 
           
Property and equipment, net   181,343    168,404 
Operating lease assets   93,658    90,180 
Goodwill   805,592    739,481 
Other intangibles assets, net   242,887    212,349 
Other assets   90,472    88,403 
           
Total assets  $2,155,037   $1,996,804 
           
LIABILITIES AND EQUITY          
Current liabilities:          
Accounts payable  $98,496   $70,415 
Accrued employee compensation and benefits   141,220    156,324 
Deferred revenue   90,916    95,608 
Current operating lease liabilities   38,918    44,460 
Other current liabilities   92,652    77,589 
Total current liabilities   462,202    444,396 
           
Long-term liabilities:          
Line of credit   955,000    791,000 
Non-current operating lease liabilities   69,269    64,419 
Other long-term liabilities   88,547    102,648 
Total long-term liabilities   1,112,816    958,067 
           
Redeemable noncontrolling interest   55,696    56,316 
           
Equity:          
Common stock   472    470 
Additional Paid in Capital   363,699    361,135 
Treasury stock   (593,337)   (597,031)
Accumulated other comprehensive income (loss)   (151,904)   (98,426)
Retained earnings   888,880    856,065 
Noncontrolling interest   16,513    15,812 
Total equity   524,323    538,025 
           
Total liabilities and equity  $2,155,037   $1,996,804 

 

 

 

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)

 

   Nine Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2022   2021 
Cash flows from operating activities:          
Net income  $91,783   $125,438 
Adjustment to reconcile net income to net cash provided by operating activities :          
Depreciation and amortization   80,061    70,655 
Amortization of contract acquisition costs   1,345    575 
Amortization of debt issuance costs   735    719 
Imputed interest expense and fair value adjustments to contingent consideration   2,070    1,046 
Provision for credit losses   1,561    (34)
Loss on disposal of assets   1,587    524 
Impairment losses   13,299    3,949 
Deferred income taxes   (8,216)   514 
Excess tax benefit from equity-based awards   (1,256)   (5,284)
Equity-based compensation expense   13,240    11,969 
Loss / (gain) on foreign currency derivatives   269    134 
Changes in assets and liabilities, net of acquisitions:          
Accounts receivable   (37,987)   48,816 
Prepaids and other assets   38,594    (42,455)
Accounts payable and accrued expenses   1,483    19,406 
Deferred revenue and other liabilities   (79,755)   (60,910)
Net cash provided by operating activities   118,813    175,062 
           
Cash flows from investing activities:          
Proceeds from sale of property, plant and equipment   189    42 
Purchases of property, plant and equipment   (64,564)   (40,778)
Acquisitions   (142,420)   (481,718)
Net cash used in investing activities   (206,795)   (522,454)
           
Cash flows from financing activities:          
Net proceeds / (borrowings) from line of credit   164,000    420,000 
Payments on other debt   (2,568)   (5,288)
Payments of contingent consideration and hold back payments to acquisitions   (9,600)   (11,517)
Dividends paid to shareholders   (23,518)   (20,132)
Payments to noncontrolling interest   (9,562)   (8,059)
Tax payments related to the issuance of restricted stock units   (6,980)   (11,369)
Payments of debt issuance costs   -    (1,102)
Net cash used in financing activities   111,772    362,533 
           
Effect of exchange rate changes on cash and cash equivalents and restricted cash   (22,226)   (6,272)
           
Increase in cash, cash equivalents and restricted cash   1,564    8,869 
Cash, cash equivalents and restricted cash, beginning of period   180,682    159,015 
Cash, cash equivalents and restricted cash, end of period  $182,246   $167,884 

 

 

 

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)

 

   Three months ended   Nine months ended 
   September 30,   September 30, 
   2022   2021   2022   2021 
Revenue  $592,453   $566,734   $1,785,429   $1,660,747 
                     
Reconciliation of Non-GAAP Income from Operations and EBITDA:                    
                     
Income from Operations  $35,604   $26,025   $119,798   $165,279 
Restructuring charges, net   1,113    485    4,261    2,612 
Impairment losses   2,939    (268)   13,299    3,949 
Grant income for pandemic relief   -    (131)   -    (8,175)
Cybersecurity incident related impact, net of insurance recovery   (6,833)   19,455    (3,164)   19,455 
Software accelerated amortization   2,127    -    2,127    - 
Write-off of acquisition related receivable   900    -    900    - 
Equity-based compensation expenses   5,357    4,570    13,239    11,969 
Amortization of purchased intangibles   9,041    9,269    28,131    22,752 
                     
Non-GAAP Income from Operations  $50,248   $59,405   $178,591   $217,841 
                     
Non-GAAP Income from Operations Margin   8.5%   10.5%   10.0%   13.1%
                     
Depreciation and amortization   15,949    16,011    49,803    47,903 
Changes in acquisition contingent consideration   2,070    -    2,070    1,046 
Other Income (expense), net   3,946    3,288    11,317    3,537 
                     
Adjusted EBITDA  $72,213   $78,704   $241,781   $270,327 
                     
Adjusted EBITDA Margin   12.2%   13.9%   13.5%   16.3%
                     
Reconciliation of Non-GAAP EPS:                    
                     
Net Income  $25,015   $18,041   $91,783   $125,438 
Add:Asset impairment and restructuring charges   4,052    217    17,560    6,561 
Add:Equity-based compensation expenses   5,357    4,570    13,239    11,969 
Add:Amortization of purchased intangibles   9,041    9,269    28,131    22,752 
Add:Cybersecurity incident related impact, net of insurance recovery   (6,833)   19,455    (3,164)   19,455 
Add:Software accelerated amortization   2,127    -    2,127    - 
Add:Changes in acquisition contingent consideration   2,070    -    2,070    1,046 
Add:Write-off of acquisition related receivable   900    -    900    - 
Less:Grant income for pandemic relief   -    (131)   -    (8,175)
Less:Changes in valuation allowance, return to provision adjustments and other, and tax effects of items separately disclosed above   (6,695)   (3,691)   (20,220)   (11,368)
                     
Non-GAAP Net Income  $35,034   $47,730   $132,426   $167,678 
                     
Diluted shares outstanding   47,314    47,348    47,354    47,372 
                     
Non-GAAP EPS  $0.74   $1.01   $2.80   $3.54 
                     
Reconciliation of Free Cash Flow:                    
                     
Cash Flow From Operating Activities:                    
Net income  $25,015   $18,041   $91,783   $125,438 
Adjustments to reconcile net income to net cash provided by operating activities:                    
Depreciation and amortization   27,117    25,280    80,061    70,655 
Other   (24,591)   (1,098)   (53,031)   (21,031)
Net cash provided by operating activities   27,541    42,223    118,813    175,062 
                     
Less - Total Cash Capital Expenditures   28,774    17,185    64,564    40,778 
                     
Free Cash Flow  $(1,233)  $25,038   $54,249   $134,284 

 

Reconciliation of Non-GAAP Income from Operations and Adjusted EBITDA by Segment :

 

   TTEC Engage   TTEC Digital   TTEC Engage   TTEC Digital 
   Q3 22   Q3 21   Q3 22   Q3 21   YTD 22   YTD 21   YTD 22   YTD 21 
Income from Operations  $27,534   $17,355   $8,070   $8,670   $94,502   $142,842   $25,296   $22,438 
Restructuring charges, net   1,086    483    27    2    4,121    1,742    140    869 
Impairment losses   2,728    133    211    (401)   13,088    4,350    211    (401)
Grant income for pandemic relief   -    (131)   -    -    -    (8,069)   -    (106)
Cybersecurity incident related impact, net of insurance recovery   (6,833)   19,221    -    234    (3,164)   19,221    -    234 
Software accelerated amortization   1,702    -    425    -    1,702    -    425    - 
Write-off of acquisition related receivable   -    -    900    -    -    -    900    - 
Equity-based compensation expenses   3,507    3,472    1,850    1,098    8,746    8,505    4,493    3,464 
Amortization of purchased intangibles   4,615    3,307    4,426    5,962    12,614    9,921    15,517    12,831 
                                         
Non-GAAP Income from Operations  $34,339   $43,840   $15,909   $15,565   $131,609   $178,512   $46,982   $39,329 
                                         
Depreciation and amortization   13,194    13,038    2,755    2,973    40,893    39,423    8,910    8,480 
Changes in acquisition contingent consideration   2,070    -    -    -    2,070    1,046    -    - 
Other Income (expense), net   3,321    3,204    625    84    10,415    3,482    902    55 
                                         
Adjusted EBITDA  $52,924   $60,082   $19,289   $18,622   $184,987   $222,463   $56,794   $47,864