0001104659-23-087874.txt : 20230804
0001104659-23-087874.hdr.sgml : 20230804
20230804163026
ACCESSION NUMBER: 0001104659-23-087874
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 14
CONFORMED PERIOD OF REPORT: 20230803
ITEM INFORMATION: Results of Operations and Financial Condition
ITEM INFORMATION: Financial Statements and Exhibits
FILED AS OF DATE: 20230804
DATE AS OF CHANGE: 20230804
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: 231144453
BUSINESS ADDRESS:
STREET 1: 6312 S. FIDDLER'S GREEN CIRCLE
STREET 2: SUITE 100N
CITY: GREENWOOD VILLAGE
STATE: CO
ZIP: 80111
BUSINESS PHONE: 303-397-8100
MAIL ADDRESS:
STREET 1: 6312 S. FIDDLER'S GREEN CIRCLE
STREET 2: SUITE 100N
CITY: GREENWOOD VILLAGE
STATE: CO
ZIP: 80111
FORMER COMPANY:
FORMER CONFORMED NAME: TELETECH HOLDINGS INC
DATE OF NAME CHANGE: 19960509
8-K
1
tm2322833d1_8k.htm
FORM 8-K
Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): August 3, 2023
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)
6312
S. Fiddlers Green Circle,Suite 100N, Greenwood
Village, CO80111
(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 3, 2023, TTEC Holdings, Inc. issued a press release
announcing its financial results for second quarter 2023, the reporting period ended June 30, 2023.
A copy of the August 3, 2023 press release is attached hereto
as Exhibit 99.1 to this current report on Form 8-K.
Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)
The information in this Form 8-K, including the exhibits attached
hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed
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.
2
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 4, 2023
By:
/s/ Francois Bourret
Francois Bourret
Interim Chief Financial Officer
3
EX-99.1
2
tm2322833d1_ex99-1.htm
EXHIBIT 99.1
Exhibit 99.1
TTEC Announces
Second Quarter 2023
Financial Results
Second Quarter
2023
Revenue was $600.4
Million
Operating Income
was $31.3 Million or 5.2 Percent of Revenue
($50.6 Million or 8.4 Percent of Revenue Non-GAAP)
Net Income was $3.8 Million or 0.6 Percent of
Revenue
($25.9 Million or 4.3 Percent of Revenue Non-GAAP)
Adjusted EBITDA was $67.2 Million or 11.2 Percent
of Revenue
Fully Diluted EPS was $0.08 ($0.55 Non-GAAP)
Reiterates Outlook for Full Year 2023
DENVER, August 3,
2023 – TTEC Holdings, Inc. (NASDAQ:TTEC), a leading global CX (customer experience) technology and services
innovator for AI-enabled CX with solutions from TTEC Engage and TTEC Digital, announced today financial results for the second quarter
ended June 30, 2023.
“We delivered on our top priorities this
quarter and exceeded the mid-point of our communicated financial guidance," commented Ken Tuchman, Chairman and chief executive officer
of TTEC. “We made meaningful progress in TTEC Engage by further expanding our geographic footprint and language capabilities as
well as continuing to grow our client portfolio with a focus on resilient verticals, including financial services, healthcare and public
sector. In TTEC Digital, we expanded our strategic CX technology partnerships, launched new and innovative AI-related offerings, and continued
to accelerate our pace of cloud migrations for clients. While it is early in the adoption of Generative AI for CX, we are actively
working with our clients and CX technology partners on exciting pilots using private large language models, augmentation solutions for
contact center associates, knowledge management solutions for AI-enablement, and advanced CX analytics.”
Tuchman continued, “We enter the second
half of the year with a healthy sales funnel and backlog. Recognizing that some of our clients are cautious in light of difficult to predict
consumer demand, we maintain a prudent outlook for the remainder of the year. We have a high level of confidence in the factors we control
and will remain agile and adapt to market conditions as they evolve.”
SECOND QUARTER 2023 FINANCIAL HIGHLIGHTS
Revenue
·
Second quarter 2023 GAAP revenue decreased 0.6
percent to $600.4 million compared to $604.3 million in the prior year period.
·
Foreign exchange had a $1.2 million negative
impact on revenue in the second quarter of 2023.
Investor Relations Contact
Paul Miller
+1.303.397.8641
Address
6312 S Fiddler’s Green Circle, 100N
Greenwood Village, CO 80111
Communications Contact
Tim Blair
tim.blair@ttec.com
+1.303.397.9267
Income from Operations
·
Second quarter 2023 GAAP income from operations
was $31.3 million, or 5.2 percent of revenue, compared to $35.9 million, or 5.9 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 $50.6 million,
or 8.4 percent of revenue, compared to $61.2 million, or 10.1 percent for the prior year period.
·
Foreign exchange had a $1.4 million positive
impact on Non-GAAP income from operations in the second quarter of 2023.
Adjusted EBITDA
·
Second quarter 2023 Non-GAAP Adjusted EBITDA
was $67.2 million, or 11.2 percent of revenue, compared to $80.6 million, or 13.3 percent of revenue in the prior year period.
Earnings
Per Share
·
Second quarter 2023 GAAP fully diluted earnings
per share was $0.08 compared to $0.61 for the same period last year.
·
Non-GAAP fully diluted earnings per share was
$0.55 compared to $0.93 in the prior year period.
CASH FLOW AND BALANCE SHEET FUND INVESTMENTS
AND DIVIDENDS
·
Cash flow from operations in the second quarter
2023 was $95.9 million compared to $77.6 million for the second quarter 2022.
·
Capital expenditures in the second quarter 2023
were $19.3 million compared to $19.1 million for the second quarter 2022.
·
As of June 30, 2023, TTEC had cash and cash
equivalents of $114.8 million and debt of $919.0 million, resulting in a net debt position of $804.2 million. This compares to a
net debt position of $771.5 million for the same period 2022. The increase in net debt is primarily attributable to capital distributions
and acquisition-related investments, partially offset by positive cash flow from operations.
·
As of June 30, 2023, TTEC’s remaining
borrowing capacity under its revolving credit facility was approximately $265 million compared to $425 million for the same period 2022.
·
TTEC paid a $0.52 per share, or $24.6 million,
semi-annual dividend on April 20, 2023 to shareholders of record on March 31, 2023. This dividend is unchanged over the October 2022
dividend and a 4.0 percent increase over the April 2022 dividend.
Investor Relations Contact
Paul Miller
+1.303.397.8641
Address
6312 S Fiddler’s Green Circle, 100N
Greenwood Village, CO 80111
Communications Contact
Tim Blair
tim.blair@ttec.com
+1.303.397.9267
SEGMENT REPORTING & COMMENTARY
TTEC reports financial results for the following 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
·
Second quarter 2023 GAAP revenue for TTEC Digital
increased 2.8 percent to $117.6 million from $114.4 million for the year ago period. Income from operations was $7.2 million or 6.1 percent
of revenue compared to operating income of $10.8 million or 9.4 percent of revenue for the prior year period.
·
Non-GAAP income from operations was $14.7 million,
or 12.5 percent of revenue compared to operating income of $16.9 million or 14.8 percent of revenue in the prior year period.
TTEC Engage – Digitally-enabled customer
care, acquisition, and fraud mitigation services
·
Second quarter 2023 GAAP revenue for TTEC Engage
decreased 1.4 percent to $482.8 million from $489.8 million for the year ago period. Income from operations was $24.1 million or 5.0 percent
of revenue compared to operating income of $25.1 million, or 5.1 percent of revenue for the prior year period.
·
Non-GAAP income from operations was $35.9 million,
or 7.4 percent of revenue, compared to operating income of $44.2 million, or 9.0 percent of revenue in the prior year period.
·
Foreign exchange had a $0.8 million negative
impact on revenue and $1.5 million positive impact on Non-GAAP income from operations.
BUSINESS OUTLOOK
“We are pleased with our execution and second
quarter financial results, in-line with our plan and above the mid-point of our revenue and profit guidance range,” commented Francois
Bourret, Interim Chief Financial Officer of TTEC. “In the second quarter, we prioritized investments around our CX technology
capabilities and global delivery footprint expansion, while maintaining a company-wide agile cost structure.”
Bourret continued, “Looking at the remainder
of 2023, we continue to operate in a dynamic environment where consumers and organizations are taking a cautious approach to their spending
priorities. This is impacting select clients’ level of confidence, which may impact volumes as well as timing to commit to CX technology
investments for the second half of the year. We remain focused on our execution and are re-affirming the mid-point of our full-year 2023
revenue and profit guidance range.”
Investor Relations Contact
Paul Miller
+1.303.397.8641
Address
6312 S Fiddler’s Green Circle, 100N
Greenwood Village, CO 80111
Communications Contact
Tim Blair
tim.blair@ttec.com
+1.303.397.9267
TTEC Full
Year 2023 Outlook
Third
Quarter 2023
Guidance
Third
Quarter 2023 Mid-Point
Full
Year 2023
Guidance
Full
Year 2023
Mid-Point
Revenue
$593M
— $613M
$603M
$2,470M
— $2,530M
$2,500M
Non-GAAP adjusted EBITDA
$60M
— $66M
$63M
$290M
— $310M
$300M
Non-GAAP adjusted EBITDA
margins
10.1%
— 10.7%
10.4%
11.7%
— 12.3%
12.0%
Non-GAAP operating income
$44M
— $50M
$47M
$221M
— $241M
$231M
Non-GAAP operating income
margins
7.4%
— 8.1%
7.8%
9.0%
— 9.5%
9.3%
Interest expense, net
($18M)
— ($20M)
($19M)
($74M)
— ($76M)
($75M)
Non-GAAP adjusted tax rate
24%
— 26%
25%
24%
— 26%
25%
Diluted share count
47.3M
— 47.5M
47.4M
47.3M
— 47.5M
47.4M
Non-GAAP earnings per a
share
$0.38
— $0.47
$0.43
$2.38
— $2.70
$2.54
Engage Full
Year 2023 outlook
Third
Quarter 2023
Guidance
Third
Quarter 2023
Mid-Point
Full
Year 2023
Guidance
Full
Year 2023
Mid-Point
Revenue
$469M
— $481M
$475M
$1,980M
— $2,020M
$2,000M
Non-GAAP adjusted EBITDA
$42M
— $46M
$44M
$221M
— $235M
$228M
Non-GAAP adjusted EBITDA
margins
9.0%
— 9.6%
9.3%
11.2%
— 11.6%
11.4%
Non-GAAP operating income
$30M
— $34M
$32M
$164M
— $178M
$171M
Non-GAAP operating income
margins
6.3%
— 7.0%
6.7%
8.3%
— 8.8%
8.6%
Digital
Full Year 2023 outlook
Third
Quarter 2023
Guidance
Third
Quarter 2023
Mid-Point
Full
Year 2023
Guidance
Full
Year 2023
Mid-Point
Revenue
$124M
— $132M
$128M
$490M
— $510M
$500M
Non-GAAP adjusted EBITDA
$17M
— $19M
$18M
$69M
— $75M
$72M
Non-GAAP adjusted EBITDA
margins
14.0%
— 14.7%
14.3%
14.1%
— 14.7%
14.4%
Non-GAAP operating income
$14M
— $16M
$15M
$57M
— $63M
$60M
Non-GAAP operating income
margins
11.5%
— 12.3%
11.9%
11.7%
— 12.4%
12.1%
The Company has not quantitatively reconciled its guidance for Non-GAAP
operating income, Non-GAAP operating income margins, Non-GAAP adjusted EBITDA, 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
restructuring and impairment charges, cybersecurity incident-related costs, 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, 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 2023 financial results as reported under GAAP.
Investor Relations Contact
Paul Miller
+1.303.397.8641
Address
6312 S Fiddler’s Green Circle, 100N
Greenwood Village, CO 80111
Communications Contact
Tim Blair
tim.blair@ttec.com
+1.303.397.9267
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 a leading global CX (customer experience) technology and services innovator for AI-enabled 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 63,900 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
Paul Miller
+1.303.397.8641
Address
6312 S Fiddler’s Green Circle, 100N
Greenwood Village, CO 80111
Communications Contact
Tim Blair
tim.blair@ttec.com
+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,
2022 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 in a competitive market; our ability to innovate and introduce disruptive technologies
that would allow us to maintain and grow our market share (e.g., effective adoption of artificial intelligence into our solutions); risks
that may arise in connection with events outside of our control (macroeconomic conditions, geopolitical tensions, outbreaks of infectious
diseases); risks inherent in a disruption and cybersecurity of our information technology systems, including cybersecurity criminal activity,
which can impact our ability to consistently deliver uninterrupted service to our clients or unauthorized access to data, any of which
may result in government investigations and enforcement actions, and private legal actions; risks inherent in the delivery of services
by employees working from home; our ability to attract and retain qualified personnel at a price point that we can afford and our clients
are willing to pay; our M&A activity, including our ability to properly integrate acquired businesses; our reliance on a relatively
small number of TTEC Engage clients to generate the majority of our revenue and our reliance on technology partners to generate a large
portion of TTEC Digital’s revenue; the changes in laws and regulations that impact our and our clients’ businesses, including
the rapidly changing data privacy and data protection laws, healthcare business regulations, financial and public sector specific regulations;
the cost of labor and data privacy litigation and other class action litigation; the risks related to our international operations including
the stress that geographic expansion may have on our business, the impact if we are unable to expand geographically to meet our clients’
demand; 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
Paul Miller
+1.303.397.8641
Address
6312 S Fiddler’s Green Circle, 100N
Greenwood Village, CO 80111
Communications Contact
Tim Blair
tim.blair@ttec.com
+1.303.397.9267
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,
2023
2022
2023
2022
Revenue
$
600,394
$
604,250
$
1,233,680
$
1,192,976
Operating Expenses:
Cost of services
464,686
463,510
947,364
910,725
Selling, general and administrative
75,338
66,766
149,348
131,605
Depreciation and amortization
24,946
26,314
50,773
52,944
Restructuring charges, net
1,474
2,528
3,527
3,148
Impairment losses
2,652
9,248
6,959
10,360
Total operating expenses
569,096
568,366
1,157,971
1,108,782
Income From Operations
31,298
35,884
75,709
84,194
Other income (expense), net
(21,439
)
188
(37,011
)
(2,118
)
Income Before Income Taxes
9,859
36,072
38,698
82,076
Provision for income taxes
(6,102
)
(7,274
)
(14,024
)
(15,308
)
Net Income
3,757
28,798
24,674
66,768
Net income attributable to noncontrolling interest
(2,546
)
(3,564
)
(4,816
)
(8,130
)
Net Income Attributable to TTEC Stockholders
$
1,211
$
25,234
$
19,858
$
58,638
Net Income Per Share
Basic
$
0.08
$
0.61
$
0.52
$
1.42
Diluted
$
0.08
$
0.61
$
0.52
$
1.41
Net Income Per Share Attributable to TTEC Stockholders
Basic
$
0.03
$
0.54
$
0.42
$
1.25
Diluted
$
0.03
$
0.53
$
0.42
$
1.24
Income From Operations Margin
5.2
%
5.9
%
6.1
%
7.1
%
Net Income Margin
0.6
%
4.8
%
2.0
%
5.6
%
Net Income Attributable to TTEC Stockholders Margin
0.2
%
4.2
%
1.6
%
4.9
%
Effective Tax Rate
61.9
%
20.2
%
36.2
%
18.7
%
Weighted Average Shares Outstanding
Basic
47,264
47,047
47,249
47,026
Diluted
47,453
47,383
47,417
47,381
TTEC HOLDINGS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(In thousands)
(unaudited)
Three months ended
Six months ended
June 30,
June 30,
2023
2022
2023
2022
Revenue:
TTEC Digital
$
117,585
$
114,433
$
234,512
$
225,847
TTEC Engage
482,809
489,817
999,168
967,129
Total
$
600,394
$
604,250
$
1,233,680
$
1,192,976
Income From Operations:
TTEC Digital
$
7,154
$
10,751
$
7,939
$
16,956
TTEC Engage
24,144
25,133
67,770
67,238
Total
$
31,298
$
35,884
$
75,709
$
84,194
TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
June 30,
December 31,
2023
2022
ASSETS
Current assets:
Cash and cash equivalents
$
114,776
$
153,435
Accounts receivable, net
402,664
417,637
Other current assets
203,697
178,898
Total current assets
721,137
749,970
Property and equipment, net
189,049
183,360
Operating lease assets
111,764
92,431
Goodwill
808,613
807,845
Other intangibles assets, net
216,168
233,909
Other assets
124,578
86,447
Total assets
$
2,171,309
$
2,153,962
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
84,335
$
93,937
Accrued employee compensation and benefits
149,919
145,096
Deferred revenue
91,757
87,846
Current operating lease liabilities
35,620
35,271
Other current liabilities
89,607
49,214
Total current liabilities
451,238
411,364
Long-term liabilities:
Line of credit
915,000
960,000
Non-current operating lease liabilities
89,388
69,575
Other long-term liabilities
74,144
79,273
Total long-term liabilities
1,078,532
1,108,848
Redeemable noncontrolling interest
3,997
55,645
Equity:
Common stock
473
472
Additional Paid in Capital
396,444
367,673
Treasury stock
(592,306
)
(593,164
)
Accumulated other comprehensive income (loss)
(90,463
)
(126,301
)
Retained earnings
906,518
911,233
Noncontrolling interest
16,876
18,192
Total equity
637,542
578,105
Total liabilities and equity
$
2,171,309
$
2,153,962
TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Six months ended
Six months ended
June 30,
June 30,
2023
2022
Cash flows from operating activities:
Net income
$
24,674
$
66,768
Adjustment to reconcile net income to net cash provided by operating activities :
Depreciation and amortization
50,773
52,944
Amortization of contract acquisition costs
1,158
1,063
Amortization of debt issuance costs
534
500
Imputed interest expense and fair value adjustments to contingent consideration
6,762
-
Provision for credit losses
1,704
198
Loss on disposal of assets
856
1,116
Impairment losses
6,959
10,360
Loss on dissolution of subsidiary
301
-
Deferred income taxes
(10,390
)
(9,161
)
Excess tax benefit from equity-based awards
243
(913
)
Equity-based compensation expense
9,802
7,882
Loss / (gain) on foreign currency derivatives
247
224
Changes in assets and liabilities, net of acquisitions:
Accounts receivable
14,645
(38,271
)
Prepaids and other assets
20,324
35,866
Accounts payable and accrued expenses
43,429
21,041
Deferred revenue and other liabilities
(27,072
)
(58,345
)
Net cash provided by operating activities
144,949
91,272
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment
28
102
Purchases of property, plant and equipment
(32,954
)
(35,790
)
Acquisitions
-
(142,420
)
Net cash used in investing activities
(32,926
)
(178,108
)
Cash flows from financing activities:
Net proceeds / (borrowings) from line of credit
(45,000
)
139,000
Payments on other debt
(1,217
)
(1,877
)
Payments of contingent consideration and hold back payments to acquisitions
(37,676
)
(9,600
)
Dividends paid to shareholders
(24,572
)
(23,518
)
Payments to noncontrolling interest
(5,887
)
(7,219
)
Tax payments related to the issuance of restricted stock units
(629
)
(3,065
)
Net cash (used in) / provided by financing activities
(114,981
)
93,721
Effect of exchange rate changes on cash and cash equivalents and restricted cash
1,275
(12,350
)
Increase in cash, cash equivalents and restricted cash
(1,683
)
(5,465
)
Cash, cash equivalents and restricted cash, beginning of period
167,064
180,682
Cash, cash equivalents and restricted cash, end of period
$
165,381
$
175,217
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,
2023
2022
2023
2022
Revenue
$
600,394
$
604,250
$
1,233,680
$
1,192,976
Reconciliation of Non-GAAP Income from Operations and EBITDA:
Income from Operations
$
31,298
$
35,884
$
75,709
$
84,194
Restructuring charges, net
1,474
2,528
3,527
3,148
Impairment losses
2,652
9,248
6,959
10,360
Cybersecurity incident related impact, net of insurance recovery
26
(167
)
(3,210
)
3,669
Grant income for pandemic relief
40
-
40
-
Change in acquisition related obligation
483
-
483
-
Equity-based compensation expenses
5,648
4,143
9,802
7,882
Amortization of purchased intangibles
9,007
9,554
18,010
19,090
Non-GAAP Income from Operations
$
50,628
$
61,190
$
111,320
$
128,343
Non-GAAP Income from Operations Margin
8.4
%
10.1
%
9.0
%
10.8
%
Depreciation and amortization
15,939
16,760
32,763
33,854
Changes in acquisition contingent consideration
3,584
-
6,762
-
Change in escrow balance related to acquisition
-
-
625
-
Loss on dissolution of subsidiary
-
-
301
-
Foreign exchange loss / (gain), net
578
(3,473
)
1,212
(4,516
)
Other Income (expense), net
(3,574
)
6,111
(2,919
)
7,371
Adjusted EBITDA
$
67,155
$
80,588
$
150,064
$
165,052
Adjusted EBITDA Margin
11.2
%
13.3
%
12.2
%
13.8
%
Reconciliation of Non-GAAP EPS:
Net Income
$
3,757
$
28,798
$
24,674
$
66,768
Add: Asset impairment and restructuring charges
4,126
11,776
10,486
13,508
Add: Equity-based compensation expenses
5,648
4,143
9,802
7,882
Add: Amortization of purchased intangibles
9,007
9,554
18,010
19,090
Add: Cybersecurity incident related impact, net of insurance recovery
26
(167
)
(3,210
)
3,669
Add: Grant income for pandemic relief
40
-
40
-
Add: Change in acquisition related obligation
483
-
483
-
Add: Changes in acquisition contingent consideration
3,584
-
6,762
-
Add: Changes in escrow balance related to acquisition
-
-
625
-
Add: Loss on dissolution of subsidiary
-
-
301
-
Add: Foreign exchange loss / (gain), net
578
(3,473
)
1,212
(4,516
)
Less: Changes in valuation allowance, return to provision adjustments and other, and tax effects of items separately disclosed above
(1,349
)
(6,782
)
(6,384
)
(12,176
)
Non-GAAP Net Income
$
25,900
$
43,849
$
62,801
$
94,225
Diluted shares outstanding
47,453
47,383
47,417
47,381
Non-GAAP EPS
$
0.55
$
0.93
$
1.32
$
1.99
Reconciliation of Free Cash Flow:
Cash Flow From Operating Activities:
Net income
$
3,757
$
28,798
$
24,674
$
66,768
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
24,946
26,314
50,773
52,944
Other
67,188
22,474
69,502
(28,440
)
Net cash provided by operating activities
95,891
77,586
144,949
91,272
Less - Total Cash Capital Expenditures
19,285
19,099
32,954
35,790
Free Cash Flow
$
76,606
$
58,487
$
111,995
$
55,482
TTEC HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)
(unaudited)
Reconciliation of Non-GAAP Income from Operations and Adjusted EBITDA by Segment :
TTEC
Engage
TTEC
Digital
TTEC
Engage
TTEC
Digital
Q2
23
Q2
22
Q2
23
Q2
22
YTD
23
YTD
22
YTD
23
YTD
22
Income from Operations
$
24,144
$
25,133
$
7,154
$
10,751
$
67,770
$
67,238
$
7,939
$
16,956
Restructuring
charges, net
801
2,415
673
113
1,793
3,035
1,734
113
Impairment
losses
2,652
9,248
-
-
4,105
10,360
2,854
-
Cybersecurity
incident related impact, net of insurance recovery
26
(167
)
-
-
(3,210
)
3,669
-
-
Grant income
for pandemic relief
40
-
-
-
40
-
-
-
Change in acquisition
related obligation
-
-
483
-
-
-
483
-
Equity-based
compensation expenses
3,596
2,834
2,052
1,309
6,272
5,286
3,530
2,596
Amortization
of purchased intangibles
4,652
4,784
4,355
4,770
9,302
7,999
8,708
11,091
Non-GAAP
Income from Operations
$
35,911
$
44,247
$
14,717
$
16,943
$
86,072
$
97,587
$
25,248
$
30,756
Depreciation
and amortization
13,572
13,696
2,367
3,064
27,888
27,700
4,875
6,154
Changes in
acquisition contingent consideration
3,584
-
-
-
6,762
-
-
-
Change in escrow
balance related to acquisition
-
-
-
-
625
-
-
-
Loss on dissolution
of subsidiary
-
-
-
-
301
-
-
-
Foreign exchange
loss / (gain), net
411
(3,105
)
167
(368
)
1,112
(4,082
)
100
(434
)
Other
Income (expense), net
(3,422
)
5,776
(152
)
335
(2,910
)
7,094
(9
)
277
Adjusted
EBITDA
$
50,056
$
60,614
$
17,099
$
19,974
$
119,850
$
128,299
$
30,214
$
36,753
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For the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
The type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.