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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): May 8,
2024
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. Fiddler's Green Circle, Suite 100N, Greenwood Village, CO
80111
(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 May 8, 2024, TTEC Holdings, Inc. issued a press release
announcing financial results for its first quarter 2024, the reporting period ended March 31, 2024.
A copy of the May 8, 2024 press release is attached hereto as Exhibit 99.1
to this current report on Form 8-K.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
EXHIBIT INDEX
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.
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: May 9, 2024 |
By: |
/s/ Kenneth R. Wagers, III |
| |
|
Kenneth R. Wagers, III
Chief Financial Officer |
Exhibit 99.1
TTEC Announces First Quarter 2024
Financial Results
First Quarter 2024
Revenue was $576.6 Million, down 8.9 Percent
Operating Income was $22.7 Million or 3.9 Percent
of Revenue
($37.9 Million or 6.6 Percent of Revenue Non-GAAP)
Net Income was $0.5 Million or 0.1 Percent of Revenue
($12.6 Million or 2.2 Percent of Revenue Non-GAAP)
Adjusted EBITDA was $54.9 Million or 9.5 Percent
of Revenue
Fully Diluted EPS was $0.01 ($0.27 Non-GAAP)
Reiterates Outlook for Full Year 2024
DENVER, May 8,
2024 – 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 first quarter ended March 31, 2024.
“We met our first quarter objectives while
navigating a fluid demand environment. We continued to make progress executing our diversification strategy that includes new clients,
partnerships, solutions, and geographic delivery locations. We established new client relationships with over two dozen accounts, several
of which are large enterprises that present strong long-term growth opportunities,” commented Ken Tuchman, chairman and chief executive
officer of TTEC.
Tuchman continued, “In TTEC Digital we are
gaining momentum as one of the dominant CX partners working at the intersection of Contact Center technology, CRM, AI, and analytics.
With our expert teams of CX strategists, data scientists, and engineers, TTEC Digital continues to deliver strong bookings and a growing
pipeline.”
“In TTEC Engage, we are attracting and ramping
an exciting group of new enterprise clients leveraging our expanded geographic footprint and technology-enabled solutions. We are working
through anticipated first half 2024 headwinds and are committed to returning the Company to long-term growth and increased profitability,”
Tuchman concluded.
FIRST QUARTER 2024 FINANCIAL HIGHLIGHTS
Revenue
| · | First
quarter 2024 GAAP revenue decreased 8.9 percent to $576.6 million compared to $633.3 million
in the prior year. |
| · | Foreign
exchange had a $1.8 million positive impact on revenue in the first quarter of 2024. |
Income from Operations
| · | First
quarter 2024 GAAP income from operations was $22.7 million, or 3.9 percent of revenue, compared
to $44.4 million, or 7.0 percent of revenue in the prior year. |
| · | Non-GAAP
income from operations, excluding restructuring and impairment charges, equity-based compensation
expenses, amortization of purchased intangibles, and other items, was $37.9 million,
or 6.6 percent of revenue, compared to $60.7 million, or 9.6 percent for the prior
year. |
| · | Foreign
exchange had a $0.5 million negative impact on Non-GAAP income from operations in the first
quarter of 2024. |
Adjusted EBITDA
| · | First
quarter 2024 Non-GAAP Adjusted EBITDA was $54.9 million, or 9.5 percent of revenue, compared
to $82.9 million, or 13.1 percent of revenue in the prior year. |
Earnings Per Share
| · | First
quarter 2024 GAAP fully diluted earnings per share was $0.01 compared to $0.44 in the prior
year. |
| · | Non-GAAP
fully diluted earnings per share was $0.27 compared to $0.78 in the prior year. |
CASH FLOW AND BALANCE SHEET
| · | Cash
flow from operations in the first quarter of 2024 was ($15.6) million compared to $49.1 million
for the first quarter of 2023. |
| · | Capital
expenditures in the first quarter of 2024 were $13.5 million compared to $13.7 million for
the first quarter of 2023. |
| · | As
of March 31, 2024, TTEC had cash and cash equivalents of $91.5 million and debt of $956.8 million,
resulting in a net debt position of $865.3 million. This compares to a net debt position
of $781.8 million for the same period 2023. |
| · | As
of March 31, 2024, TTEC’s remaining borrowing capacity under its revolving credit
facility was approximately $95 million compared to $335 million for the same period 2023. |
| · | On
February 27, 2024, the Board declared the semi-annual dividend of $0.06 per share, or
$2.8 million, which was paid on April 30, 2024, to shareholders of record as of
April 3, 2024. |
SEGMENT REPORTING & COMMENTARY
TTEC reports financial results for the following two business segments:
TTEC Digital and TTEC Engage. Financial highlights for the two segments are provided below.
TTEC Digital – Design, build and operate
tech-enabled, insight-driven CX solutions
| · | First
quarter 2024 GAAP revenue for TTEC Digital decreased 4.2 percent to $112.0 million from $116.9
million for the year ago period. Income from operations was $3.3 million or 2.9 percent of
revenue compared to an operating income of $0.8 million or 0.7 percent of revenue in the
prior year. |
| · | Non-GAAP
income from operations was $9.3 million, or 8.3 percent of revenue, compared to Non-GAAP
income from operations of $10.5 million or 9.0 percent of revenue in the prior year. |
TTEC Engage – Digitally-enabled customer
care, acquisition, and fraud mitigation services
| · | First
quarter 2024 GAAP revenue for TTEC Engage decreased 10.0 percent to $464.6 million from $516.4
million for the year ago period. Income from operations was $19.4 million or 4.2 percent
of revenue compared to operating income of $43.6 million, or 8.4 percent of revenue in the
prior year. |
| · | Non-GAAP
income from operations was $28.7 million, or 6.2 percent of revenue, compared to Non-GAAP
income from operations of $50.2 million, or 9.7 percent of revenue in the prior year. |
| · | Foreign
exchange had a $1.7 million positive impact on revenue and $0.4 million negative impact on
income from operations. |
BUSINESS OUTLOOK
“We delivered upon our plan in the first
quarter, especially the momentum in our TTEC Digital business as an increased level of clients across industries modernize their CX ecosystems
with our cloud technology solutions. Operational execution in our TTEC Engage business is a top priority as we focus on increased utilization
of our expanded global footprint, deepen our relationships with new and existing clients, and integrate AI-enabled solutions. We are
also resolute in our commitment to meaningfully improve our TTEC Engage profit margins in the second half of this year,” commented
Kenny Wagers, chief financial officer of TTEC.
Wagers continued, “I want to convey our
confidence in the attractiveness of the CX marketplace, our differentiated TTEC Engage and TTEC Digital technology and service capabilities,
and our fortitude to execute and deliver long-term value to our clients and shareholders. We still believe that the second quarter will
be the low point in our performance this year as we transition through the peak of the headwinds in our TTEC Engage business. This, in
addition to the profit optimization initiatives shared in our last earnings call, gives us the confidence in achieving our full-year
outlook.”
TTEC
Full Year 2024 Outlook
| | |
Full Year 2024 | |
Full Year 2024 |
| | |
Guidance | |
Mid-Point |
| Revenue | |
$2,275M — $2,365M | |
$2,320M |
| Non-GAAP adjusted EBITDA | |
$215M — $259M | |
$237M |
| Non-GAAP adjusted EBITDA margins | |
9.5% — 11.0% | |
10.2% |
| Non-GAAP operating income | |
$150M — $194M | |
$172M |
| Non-GAAP operating income margins | |
6.6% — 8.2% | |
7.4% |
| Interest expense, net | |
($79M) — ($81M) | |
($80M) |
| Non-GAAP adjusted tax rate | |
25% — 27% | |
26% |
| Diluted share count | |
47.4M — 47.6M | |
47.5M |
| Non-GAAP earnings per a share | |
$1.10 — $1.78 | |
$1.44 |
Engage Full Year 2024 Outlook
| | |
Full Year 2024 | |
Full Year 2024 |
| | |
Guidance | |
Mid-Point |
| Revenue | |
$1,790M — $1,850M | |
$1,820M |
| Non-GAAP adjusted EBITDA | |
$149M — $179M | |
$164M |
| Non-GAAP adjusted EBITDA margins | |
8.4% — 9.7% | |
9.0% |
| Non-GAAP operating income | |
$95M — $125M | |
$110M |
| Non-GAAP operating income margins | |
5.3% — 6.8% | |
6.1% |
Digital Full Year 2024 Outlook
| | |
Full Year 2024 | |
Full Year 2024 |
| | |
Guidance | |
Mid-Point |
| Revenue | |
$485M — $515M | |
$500M |
| Non-GAAP adjusted EBITDA | |
$66M — $80M | |
$73M |
| Non-GAAP adjusted EBITDA margins | |
13.5% — 15.5% | |
14.5% |
| Non-GAAP operating income | |
$55M — $69M | |
$62M |
| Non-GAAP operating income margins | |
11.2% — 13.3% | |
12.3% |
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, 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, EBITDA margins, and diluted earnings per share without unreasonable effort. Please note that the unavailable reconciling
items could significantly impact the Company’s 2024 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 (pronounced
T-TEC) Holdings, Inc. (NASDAQ:TTEC) is a leading global CX (customer experience) technology and services innovator for AI-enabled
digital CX solutions. 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 technology, the Company's TTEC Digital
business designs, builds, and operates omnichannel contact center technology, CRM, AI and analytics solutions. The Company's TTEC Engage
business delivers AI-enabled customer engagement, customer acquisition and growth, tech support, back office, and fraud prevention services.
Founded in 1982, the Company's singular obsession with CX excellence has earned it leading client, customer, and employee satisfaction
scores across the globe. The Company's approximately 58,000 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.
FORWARD-LOOKING STATEMENTS
This Earnings Press
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. Forward-looking statements include,
but are not limited to, statements relating to our operations, expected financial position, results of operation, effective tax
rate, cash flow, leverage, liquidity, business strategy, competitive position, demand for our services in international operations, acquisition
opportunities and impact of acquisitions, capital allocation and dividends, growth opportunities, spending, capital expenditures and
investments, competition and market forecasts, industry trends, our human capital resources, 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. Unless otherwise indicated or except where the context otherwise requires, the terms “TTEC,”
“the Company,” “we,” “us” and “our” and other similar terms in this report refer to TTEC
Holdings, Inc. and its subsidiaries. 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, 2023 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
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.
TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
| | |
Three months ended | |
| | |
March 31, | |
| | |
2024 | | |
2023 | |
| Revenue | |
$ | 576,638 | | |
$ | 633,286 | |
| | |
| | | |
| | |
| Operating Expenses: | |
| | | |
| | |
| Cost of services | |
| 453,818 | | |
| 482,678 | |
| Selling, general and administrative | |
| 74,575 | | |
| 74,010 | |
| Depreciation and amortization | |
| 25,145 | | |
| 25,827 | |
| Restructuring charges, net | |
| 249 | | |
| 2,053 | |
| Impairment losses | |
| 140 | | |
| 4,307 | |
| Total operating expenses | |
| 553,927 | | |
| 588,875 | |
| | |
| | | |
| | |
| Income From Operations | |
| 22,711 | | |
| 44,411 | |
| | |
| | | |
| | |
| Other income (expense), net | |
| (19,882 | ) | |
| (15,572 | ) |
| | |
| | | |
| | |
| Income Before Income Taxes | |
| 2,829 | | |
| 28,839 | |
| | |
| | | |
| | |
| Provision for income taxes | |
| (2,329 | ) | |
| (7,922 | ) |
| | |
| | | |
| | |
| Net Income | |
| 500 | | |
| 20,917 | |
| | |
| | | |
| | |
| Net (loss) / income attributable to noncontrolling interest | |
| (2,805 | ) | |
| (2,270 | ) |
| | |
| | | |
| | |
| Net (Loss) / Income Attributable to TTEC Stockholders | |
$ | (2,305 | ) | |
$ | 18,647 | |
| | |
| | | |
| | |
| Net Income Per Share | |
| | | |
| | |
| | |
| | | |
| | |
| Basic | |
$ | 0.01 | | |
$ | 0.44 | |
| | |
| | | |
| | |
| Diluted | |
$ | 0.01 | | |
$ | 0.44 | |
| | |
| | | |
| | |
| Net (Loss) / Income Per Share Attributable to TTEC Stockholders | |
| | | |
| | |
| | |
| | | |
| | |
| Basic | |
$ | (0.05 | ) | |
$ | 0.39 | |
| | |
| | | |
| | |
| Diluted | |
$ | (0.05 | ) | |
$ | 0.39 | |
| | |
| | | |
| | |
| Income From Operations Margin | |
| 3.9 | % | |
| 7.0 | % |
| Net Income Margin | |
| 0.1 | % | |
| 3.3 | % |
| Net (Loss) / Income Attributable to TTEC Stockholders Margin | |
| (0.4 | )% | |
| 2.9 | % |
| Effective Tax Rate | |
| 82.3 | % | |
| 27.5 | % |
| | |
| | | |
| | |
| Weighted Average Shares Outstanding | |
| | | |
| | |
| Basic | |
| 47,432 | | |
| 47,234 | |
| Diluted | |
| 47,587 | | |
| 47,401 | |
TTEC HOLDINGS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(In thousands)
(unaudited)
| | |
Three months ended | |
| | |
March 31, | |
| | |
2024 | | |
2023 | |
| Revenue: | |
| | | |
| | |
| TTEC Digital | |
$ | 112,031 | | |
$ | 116,927 | |
| TTEC Engage | |
| 464,607 | | |
| 516,359 | |
| Total | |
$ | 576,638 | | |
$ | 633,286 | |
| | |
| | | |
| | |
| Income From Operations: | |
| | | |
| | |
| TTEC Digital | |
$ | 3,288 | | |
$ | 785 | |
| TTEC Engage | |
| 19,423 | | |
| 43,626 | |
| Total | |
$ | 22,711 | | |
$ | 44,411 | |
TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
| | |
March 31, | | |
December 31, | |
| | |
2024 | | |
2023 | |
| ASSETS | |
| | | |
| | |
| Current assets: | |
| | | |
| | |
| Cash and cash equivalents | |
$ | 91,514 | | |
$ | 172,747 | |
| Accounts receivable, net | |
| 404,651 | | |
| 394,868 | |
| Prepaids and other current assets | |
| 104,985 | | |
| 95,064 | |
| Income and other tax receivables | |
| 16,328 | | |
| 18,524 | |
| Total current assets | |
| 617,478 | | |
| 681,203 | |
| | |
| | | |
| | |
| Property and equipment, net | |
| 185,242 | | |
| 191,003 | |
| Operating lease assets | |
| 113,060 | | |
| 121,574 | |
| Goodwill | |
| 807,134 | | |
| 808,988 | |
| Other intangibles assets, net | |
| 189,814 | | |
| 198,433 | |
| Income and other tax receivables, long-term | |
| 41,501 | | |
| 44,673 | |
| Other assets | |
| 160,825 | | |
| 139,724 | |
| | |
| | | |
| | |
| Total assets | |
$ | 2,115,054 | | |
$ | 2,185,598 | |
| | |
| | | |
| | |
| LIABILITIES AND EQUITY | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | |
| Accounts payable | |
$ | 90,473 | | |
$ | 96,577 | |
| Accrued employee compensation and benefits | |
| 120,340 | | |
| 146,184 | |
| Deferred revenue | |
| 87,787 | | |
| 81,171 | |
| Current operating lease liabilities | |
| 36,457 | | |
| 38,271 | |
| Other current liabilities | |
| 49,158 | | |
| 40,824 | |
| Total current liabilities | |
| 384,215 | | |
| 403,027 | |
| | |
| | | |
| | |
| Long-term liabilities: | |
| | | |
| | |
| Line of credit | |
| 953,000 | | |
| 995,000 | |
| Non-current operating lease liabilities | |
| 90,218 | | |
| 96,809 | |
| Other long-term liabilities | |
| 75,212 | | |
| 75,220 | |
| Total long-term liabilities | |
| 1,118,430 | | |
| 1,167,029 | |
| | |
| | | |
| | |
| Equity: | |
| | | |
| | |
| Common stock | |
| 474 | | |
| 474 | |
| Additional paid in capital | |
| 412,768 | | |
| 407,415 | |
| Treasury stock | |
| (589,475 | ) | |
| (589,807 | ) |
| Accumulated other comprehensive income (loss) | |
| (93,733 | ) | |
| (89,876 | ) |
| Retained earnings | |
| 865,277 | | |
| 870,429 | |
| Noncontrolling interest | |
| 17,098 | | |
| 16,907 | |
| Total equity | |
| 612,409 | | |
| 615,542 | |
| | |
| | | |
| | |
| Total liabilities and equity | |
$ | 2,115,054 | | |
$ | 2,185,598 | |
TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
| | |
Three Months Ended | | |
Three Months Ended | |
| | |
March 31, | | |
March 31, | |
| | |
2024 | | |
2023 | |
| Cash flows from operating activities: | |
| | | |
| | |
| Net income | |
$ | 500 | | |
$ | 20,917 | |
| Adjustment to reconcile net income to net cash provided by operating activities: | |
| | | |
| | |
| Depreciation and amortization | |
| 25,145 | | |
| 25,827 | |
| Amortization of contract acquisition costs | |
| 283 | | |
| 716 | |
| Amortization of debt issuance costs | |
| 643 | | |
| 268 | |
| Imputed interest expense and fair value adjustments to contingent consideration | |
| (1,240 | ) | |
| 3,178 | |
| Provision for credit losses | |
| (31 | ) | |
| 2,263 | |
| Loss on disposal of assets | |
| 510 | | |
| 605 | |
| Impairment losses | |
| 140 | | |
| 4,307 | |
| Loss on dissolution of subsidiary | |
| | | |
| 301 | |
| Deferred income taxes | |
| (12,628 | ) | |
| (4,994 | ) |
| Excess tax benefit from equity-based awards | |
| 292 | | |
| (1 | ) |
| Equity-based compensation expense | |
| 5,812 | | |
| 4,154 | |
| Loss / (gain) on foreign currency derivatives | |
| 77 | | |
| (493 | ) |
| Changes in assets and liabilities, net of acquisitions: | |
| | | |
| | |
| Accounts receivable | |
| (11,301 | ) | |
| 11,089 | |
| Prepaids and other assets | |
| 3,094 | | |
| 13,325 | |
| Accounts payable and accrued expenses | |
| (25,845 | ) | |
| (22,352 | ) |
| Deferred revenue and other liabilities | |
| (1,080 | ) | |
| (10,052 | ) |
| Net cash provided by operating activities | |
| (15,629 | ) | |
| 49,058 | |
| | |
| | | |
| | |
| Cash flows from investing activities: | |
| | | |
| | |
| Proceeds from sale of property, plant and equipment | |
| 25 | | |
| 26 | |
| Purchases of property, plant and equipment | |
| (13,473 | ) | |
| (13,669 | ) |
| Net cash used in investing activities | |
| (13,448 | ) | |
| (13,643 | ) |
| | |
| | | |
| | |
| Cash flows from financing activities: | |
| | | |
| | |
| Net proceeds / (borrowings) from line of credit | |
| (42,000 | ) | |
| (30,000 | ) |
| Payments on other debt | |
| (741 | ) | |
| (600 | ) |
| Payments of contingent consideration and hold back payments to acquisitions | |
| - | | |
| (9,162 | ) |
| Payments to noncontrolling interest | |
| (2,520 | ) | |
| (3,367 | ) |
| Tax payments related to the issuance of restricted stock units | |
| (127 | ) | |
| (510 | ) |
| Payments of debt issuance costs | |
| (1,100 | ) | |
| - | |
| Net cash provided by financing activities | |
| (46,488 | ) | |
| (43,639 | ) |
| | |
| | | |
| | |
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | |
| 1,847 | | |
| 878 | |
| | |
| | | |
| | |
| Increase in cash, cash equivalents and restricted cash | |
| (73,718 | ) | |
| (7,346 | ) |
| Cash, cash equivalents and restricted cash, beginning of period | |
| 173,905 | | |
| 167,064 | |
| Cash, cash equivalents and restricted cash, end of period | |
$ | 100,187 | | |
$ | 159,718 | |
TTEC HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL
INFORMATION
(In thousands, except per share data)
(unaudited)
| | |
Three months ended | |
| | |
March 31, | |
| | |
2024 | | |
2023 | |
| Revenue | |
$ | 576,638 | | |
$ | 633,286 | |
| | |
| | | |
| | |
| Reconciliation of Non-GAAP Income from Operations and EBITDA: | |
| | | |
| | |
| | |
| | | |
| | |
| Income from Operations | |
$ | 22,711 | | |
$ | 44,411 | |
| Restructuring charges, net | |
| 249 | | |
| 2,053 | |
| Impairment losses | |
| 140 | | |
| 4,307 | |
| Cybersecurity incident related impact, net of insurance recovery | |
| - | | |
| (3,236 | ) |
| Property costs not related to operations | |
| 1,033 | | |
| - | |
| Liability related to notifications triggered by labor scheme
(1) | |
| (475 | ) | |
| - | |
| Equity-based compensation expenses | |
| 5,812 | | |
| 4,154 | |
| Amortization of purchased intangibles | |
| 8,445 | | |
| 9,003 | |
| | |
| | | |
| | |
| Non-GAAP Income from Operations | |
$ | 37,915 | | |
$ | 60,692 | |
| | |
| | | |
| | |
| Non-GAAP Income from Operations Margin | |
| 6.6 | % | |
| 9.6 | % |
| | |
| | | |
| | |
| Depreciation and amortization | |
| 16,069 | | |
| 16,824 | |
| Changes in acquisition contingent consideration | |
| (1,240 | ) | |
| 3,178 | |
| Change in escrow balance related to acquisition | |
| - | | |
| 625 | |
| Loss on dissolution of subsidiary | |
| - | | |
| 301 | |
| Foreign VAT receivable write-off | |
| 770 | | |
| - | |
| Foreign exchange loss / (gain), net | |
| 1,192 | | |
| 634 | |
| Other Income (expense), net | |
| 206 | | |
| 655 | |
| | |
| | | |
| | |
| Adjusted EBITDA | |
$ | 54,912 | | |
$ | 82,909 | |
| | |
| | | |
| | |
| Adjusted EBITDA Margin | |
| 9.5 | % | |
| 13.1 | % |
| | |
| | | |
| | |
| Reconciliation of Non-GAAP EPS: | |
| | | |
| | |
| | |
| | | |
| | |
| Net Income | |
$ | 500 | | |
$ | 20,917 | |
| Add:Asset impairment and restructuring charges | |
| 389 | | |
| 6,360 | |
| Add:Equity-based compensation expenses | |
| 5,812 | | |
| 4,154 | |
| Add:Amortization of purchased intangibles | |
| 8,445 | | |
| 9,003 | |
| Add:Cybersecurity incident related impact, net of insurance recovery | |
| - | | |
| (3,236 | ) |
| Add:Property costs not related to operations | |
| 1,033 | | |
| - | |
| Add:Liability related to notifications triggered by labor scheme | |
| (475 | ) | |
| - | |
| Add:Foreign VAT receivable write-off | |
| 770 | | |
| - | |
| Add:Changes in acquisition contingent consideration | |
| (1,240 | ) | |
| 3,178 | |
| Add:Changes in escrow balance related to acquisition | |
| - | | |
| 625 | |
| Add:Loss on dissolution of subsidiary | |
| - | | |
| 301 | |
| Add:Foreign exchange loss / (gain), net | |
| 1,192 | | |
| 634 | |
| Less:Changes in valuation allowance, return to provision adjustments and other, and tax effects of items separately disclosed above | |
| (3,806 | ) | |
| (5,035 | ) |
| | |
| | | |
| | |
| Non-GAAP Net Income | |
$ | 12,620 | | |
$ | 36,901 | |
| | |
| | | |
| | |
| Diluted shares outstanding | |
| 47,587 | | |
| 47,401 | |
| | |
| | | |
| | |
| Non-GAAP EPS | |
$ | 0.27 | | |
$ | 0.78 | |
| | |
| | | |
| | |
| Reconciliation of Free Cash Flow: | |
| | | |
| | |
| | |
| | | |
| | |
| Cash Flow From Operating Activities: | |
| | | |
| | |
| Net income | |
$ | 500 | | |
$ | 20,917 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | |
| | | |
| | |
| Depreciation and amortization | |
| 25,145 | | |
| 25,827 | |
| Other | |
| (41,274 | ) | |
| 2,314 | |
| Net cash provided by operating activities | |
| (15,629 | ) | |
| 49,058 | |
| | |
| | | |
| | |
| Less - Total Cash Capital Expenditures | |
| 13,473 | | |
| 13,669 | |
| | |
| | | |
| | |
| Free Cash Flow | |
$ | (29,102 | ) | |
$ | 35,389 | |
(1) -
For further information, please see discussion in the Risk Factors section of the 2023 Form 10-K filed on February 29,
2024.
Reconciliation
of Non-GAAP Income from Operations and Adjusted EBITDA by Segment:
| | |
TTEC Engage | | |
TTEC Digital | |
| | |
Q1 24 | | |
Q1 23 | | |
Q1 24 | | |
Q1 23 | |
| Income from Operations | |
$ | 19,422 | | |
$ | 43,626 | | |
$ | 3,289 | | |
$ | 785 | |
| Restructuring charges, net | |
| 653 | | |
| 992 | | |
| (404 | ) | |
| 1,061 | |
| Impairment losses | |
| 140 | | |
| 1,453 | | |
| - | | |
| 2,854 | |
| Cybersecurity incident related impact, net of insurance recovery | |
| - | | |
| (3,236 | ) | |
| - | | |
| - | |
| Property costs not related to operations | |
| 1,033 | | |
| - | | |
| - | | |
| - | |
| Liability related to notifications triggered by labor scheme | |
| (475 | ) | |
| - | | |
| - | | |
| - | |
| Equity-based compensation expenses | |
| 3,783 | | |
| 2,676 | | |
| 2,029 | | |
| 1,478 | |
| Amortization of purchased intangibles | |
| 4,107 | | |
| 4,650 | | |
| 4,338 | | |
| 4,353 | |
| | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP Income from Operations | |
$ | 28,663 | | |
$ | 50,161 | | |
$ | 9,252 | | |
$ | 10,531 | |
| | |
| | | |
| | | |
| | | |
| | |
| Depreciation and amortization | |
| 13,357 | | |
| 14,316 | | |
| 2,712 | | |
| 2,508 | |
| Changes in acquisition contingent consideration | |
| (1,240 | ) | |
| 3,178 | | |
| - | | |
| - | |
| Change in escrow balance related to acquisition | |
| - | | |
| 625 | | |
| - | | |
| - | |
| Loss on dissolution of subsidiary | |
| - | | |
| 301 | | |
| - | | |
| - | |
| Foreign VAT receivable write-off | |
| 770 | | |
| - | | |
| - | | |
| - | |
| Foreign exchange loss / (gain), net | |
| 1,378 | | |
| 701 | | |
| (187 | ) | |
| (67 | ) |
| Other Income (expense), net | |
| 44 | | |
| 512 | | |
| 163 | | |
| 143 | |
| | |
| | | |
| | | |
| | | |
| | |
| Adjusted EBITDA | |
$ | 42,972 | | |
$ | 69,794 | | |
$ | 11,940 | | |
$ | 13,115 | |
v3.24.1.u1
Cover
|
May 08, 2024 |
| Cover [Abstract] |
|
| Document Type |
8-K
|
| Amendment Flag |
false
|
| Document Period End Date |
May 08, 2024
|
| 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 |
6312 S. Fiddler's Green Circle
|
| Entity Address, Address Line Two |
Suite 100N
|
| Entity Address, City or Town |
Greenwood Village
|
| Entity Address, State or Province |
CO
|
| Entity Address, Postal Zip Code |
80111
|
| 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
|
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