TTEC TTEC Holdings Inc

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 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. 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 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.

 

Item 9.01.   Financial Statements and Exhibits

 

(d)  Exhibits.

 

EXHIBIT INDEX

 

Exhibit No.		Description
99.1		Press release announcing financial results for second quarter ended June 30, 2023
104		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.

 

 

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

 

 

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

 

 

v3.23.2

Cover	Aug. 03, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 03, 2023
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
Entity Emerging Growth Company	false

---