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): February 27, 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)

 

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

(Address of principal executive offices) (Zip Code)

 

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

 

Not Applicable
(Former name or former address if changed since last report)

 

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

 

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))

 

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 February 29, 2024, TTEC Holdings, Inc. (the "Company") issued a press release announcing its financial results for its fourth quarter and fiscal year ended December 31, 2023; and shared its outlook for full year 2024.

 

A copy of the February 29, 2024 press release is attached as Exhibit 99.1 to this current report on Form 8-K.

 

Item 8.01. Other Events.

 

On February 27, 2024, the Company’s Board of Directors declared a cash dividend of $0.06 per common share to be paid on April 30, 2024 to shareholders of record as of April 3, 2024.

 

A copy of the press release announcing the cash dividend is attached 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 fourth quarter and fiscal year ended December 31, 2023, dated February 29, 2024
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

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: March 1, 2024	By:	/s/ Francois Bourret
		Francois Bourret Interim Chief Financial Officer

 

 

 

Exhibit 99.1

 

 

 

TTEC Announces Fourth Quarter and

Full Year 2023 Financial Results

 

Full Year 2023 

Revenue was $2.463 Billion, up 0.8 Percent 

Operating Income was $118.0 Million or 4.8 Percent of Revenue

($200.4 Million or 8.1 Percent of Revenue Non-GAAP) 

Net Income was $18.3 Million or 0.7 Percent of Revenue 

($103.2 Million or 4.2 Percent of Revenue Non-GAAP)

Adjusted EBITDA was $271.5 Million or 11.0 Percent of Revenue

Fully Diluted EPS was $0.39, $2.18 Non-GAAP

 

Fourth Quarter 2023 

Revenue was $626.2 Million, down 4.9 Percent 

Operating Income was 16.9 Million or 2.7 Percent of Revenue 

($41.8 Million or 6.7 Percent of Revenue Non-GAAP) 

Net Income was ($8.2) Million or (1.3) Percent of Revenue 

($17.5 Million or 2.8 Percent of Revenue Non-GAAP) 

Adjusted EBITDA was $57.5 Million or 9.2 Percent of Revenue 

Fully Diluted EPS was ($0.17), $0.37 Non-GAAP 

Provides Outlook for Full Year 2024

 

DENVER, February 29, 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 fourth quarter and full year ended December 31, 2023.

 

“As we have previously communicated, 2023 was a dynamic year for TTEC. The macroeconomic factors created a conservative and uncertain business environment that delayed client contracting decisions and lowered forecasts for certain clients in the second half of the year. While these factors moderated our results, we continued to make progress diversifying our business by growing our client base, completing a strategic phase of our geographic expansion, and expanding our AI-enabled solutions,” commented Ken Tuchman, chairman and chief executive officer of TTEC.

 

“Our 2024 outlook reflects three very specific challenges in our TTEC Engage segment. First, client budget constraints and a conservative mindset in the second half of 2023 is carrying forward into our 2024 outlook. Second, a long-tenured client eliminated one of several lines of business that we supported. While our relationship remains strong with this client and we continue to service their customers across multiple other lines of business, the discontinuation of this one line of business contributes to the impact on our top and bottom line in 2024. Third, while we are pleased by the growing demand for our new offshore locations, the timing lag between our recent wins and normalized revenue run rate and margins is weighing on our outlook,” Tuchman continued.

 

 

 

 

 

 

“In TTEC Digital, we delivered record bookings in the fourth quarter and the team is off to a strong start this year. Demand for our differentiated CX technology expertise continues to grow as cloud migrations and AI solutions drive our clients’ CX digital transformation agendas.”

 

Tuchman further stated, “As we move into 2024, we are laser focused on execution. We will continue to capitalize on our greatly expanded offshore footprint, deepen our relationships with new and existing clients, apply our AI-enabled solutions and accelerate our margin optimization initiatives.”

 

“TTEC’s board of directors’ decision to reduce the dividend reflects a prudent shift to prioritize our capital deployment towards continued investments in sustainable growth initiatives and debt reduction associated with strategic acquisitions. As revised, the dividend is in line with our stock price and the dividend yield typical for our industry and the broader market. I am confident we are well positioned to emerge stronger as we exit 2024.”

 

FULL YEAR 2023 FINANCIAL HIGHLIGHTS

 

Revenue

 

·

Full year 2023 GAAP revenue increased 0.8 percent to $2.463 billion compared to $2.444 billion in the prior year.

 

·

Foreign exchange had a $4.4 million positive impact on revenue for the full year 2023.

 

Income from Operations

 

·

Full year 2023 GAAP income from operations was $118.0 million, or 4.8 percent of revenue, compared to $168.5 million, or 6.9 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 $200.4 million, or 8.1 percent of revenue, compared to $248.5 million, or 10.2 percent in the prior year.

 

·

Foreign exchange had a $2.2 million negative impact on Non-GAAP income from operations for the full year 2023.

 

Adjusted EBITDA

 

·

Full year 2023 Non-GAAP Adjusted EBITDA was $271.5 million, or 11.0 percent of revenue, compared to $320.1 million, or 13.1 percent of revenue in the prior year.

 

Earnings Per Share

 

·

Full year 2023 GAAP fully diluted earnings per share was $0.39 compared to $2.48 in the prior year.

 

·

Non-GAAP fully diluted earnings per share was $2.18 compared to $3.59 in the prior year.

 

FOURTH QUARTER 2023 FINANCIAL HIGHLIGHTS

 

Revenue

 

·

Fourth quarter 2023 GAAP revenue decreased 4.9 percent to $626.2 million compared to $658.3 million in the prior year.

 

·

Foreign exchange had a $5.5 million positive impact on revenue in the fourth quarter of 2023.

 

 

 

 

 

 

Income from Operations

 

·

Fourth quarter 2023 GAAP income from operations was $16.9 million, or 2.7 percent of revenue, compared to $48.7 million, or 7.4 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 $41.8 million, or 6.7 percent of revenue, compared to $69.9 million, or 10.6 percent for the prior year.

 

·

Foreign exchange had a $2.4 million negative impact on Non-GAAP income from operations in the fourth quarter 2023.

 

Adjusted EBITDA

 

·

Fourth quarter 2023 Non-GAAP Adjusted EBITDA was $57.5 million, or 9.2 percent of revenue, compared to $86.5 million, or 13.1 percent of revenue in the prior year.

 

Earnings Per Share

 

·

Fourth quarter 2023 GAAP fully diluted earnings per share was ($0.17) compared to $0.54 in the prior year.

 

·

Non-GAAP fully diluted earnings per share was $0.37 compared to $0.91 in the prior year.

 

STRONG CASH FLOW AND BALANCE SHEET FUND INVESTMENTS AND DIVIDENDS

 

·

Cash flow from operations in the fourth quarter 2023 was $31.5 million compared to $18.2 million for the fourth quarter 2022. For the full year 2023, cash flow from operations was $144.8 million compared to $137.0 million for the same period 2022.

 

·

Capital expenditures in the fourth quarter 2023 were $13.1 million compared to $19.4 million for the fourth quarter 2022. For the full year 2023, capital expenditures were $67.8 million compared to $84.0 million for the same period 2022.

 

·

As of December 31, 2023, TTEC had cash and cash equivalents of $172.7 million and debt of $999.3 million, resulting in a net debt position of $826.5 million. This compares to a net debt position of $810.2 million for the same period 2022.

 

·

As of December 31, 2023, TTEC’s remaining borrowing capacity under its revolving credit facility was approximately $90 million compared to $335 million for the same period 2022.

 

·

On February 27, 2024, the Board declared the next semi-annual dividend of $0.06 per share, or $2.9 million, payable on April 30, 2024 to shareholders of record as of April 3, 2024. TTEC’s board of directors’ decision to reduce the dividend reflects a prudent shift to prioritize our capital deployment towards continued investments in sustainable growth initiatives and debt reduction associated with strategic acquisitions.

 

·

TTEC paid a $0.52 per share, or $24.7 million, semi-annual dividend on October 31, 2023.

 

 

 

 

 

 

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

 

·

Fourth quarter 2023 GAAP revenue for TTEC Digital decreased 2.1 percent to $119.1 million from $121.7 million for the year ago period. Income from operations was $10.0 million or 8.4 percent of revenue compared to an operating income of $9.9 million or 8.2 percent of revenue in the prior year.

 

·

Non-GAAP income from operations was $17.7 million, or 14.8 percent of revenue compared to operating income of $18.0 million or 14.8 percent of revenue in the prior year.

 

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

 

·

Fourth quarter 2023 GAAP revenue for TTEC Engage decreased 5.5 percent to $507.1 million from $536.6 million for the year ago period. Income from operations was $6.9 million or 1.4 percent of revenue compared to operating income of $38.8 million, or 7.2 percent of revenue in the prior year.

 

·

Non-GAAP income from operations was $24.1 million, or 4.8 percent of revenue, compared to operating income of $52.0 million, or 9.7 percent of revenue in the prior year.

 

·

Foreign exchange had a $5.3 million positive impact on revenue and $1.9 million negative impact on income from operations.

 

BUSINESS OUTLOOK

 

“We ended 2023 in line with expectations but the recent dynamics in the Engage segment are causing a reduction in our 2024 revenue and margin outlook compared to 2023. We are confident in the initiatives currently in motion that focus on growth and margin improvement,“ commented Francois Bourret, interim chief financial officer of TTEC. “As digital transformation continues to be a top priority for our clients, we are encouraged by the growing momentum with TTEC Digital. As we move forward, we will navigate this environment to position the company to exit 2024 with a view towards longer-term profitable growth.”

 

 

 

 

 

 

TTEC First Quarter and Full Year 2024 Outlook

First Quarter 2024 Guidance

First Quarter 2024 Mid-Point

Full Year 2024 Guidance

Full Year 2024 Mid-Point

Revenue

$559M — $569M

$564M

$2,275M — $2,365M

$2,320M

Non-GAAP adjusted EBITDA

$52M — $58M

$55M

$215M — $259M

$237M

Non-GAAP adjusted EBITDA margins

9.3% — 10.2%

9.8%

9.5% — 11.0%

10.2%

Non-GAAP operating income

$36M — $42M

$39M

$150M — $194M

$172M

Non-GAAP operating income margins

6.4% — 7.4%

6.9%

6.6% — 8.2%

7.4%

Interest expense, net

($20M) — ($22M)

$(21M)

($77M) — ($79M)

$(78M)

Non-GAAP adjusted tax rate

23% — 25%

24%

23% — 25%

24%

Diluted share count

47.4M — 47.6M

47.5M

47.4M — 47.6M

47.5M

Non-GAAP earnings per a share

$0.25 — $0.34

$0.30

$1.15 — $1.86

$1.51

 

Engage First Quarter and Full Year 2024 Outlook

First Quarter 2024 Guidance

First Quarter 2024 Mid-Point

Full Year 2024 Guidance

Full Year 2024 Mid-Point

Revenue

$453M — $457M

$455M

$1,790M — $1,850M

$1,820M

Non-GAAP adjusted EBITDA

$41M — $45M

$43M

$149M — $179M

$164M

Non-GAAP adjusted EBITDA margins

9.2% — 9.9%

9.5%

8.4% — 9.7%

9.0%

Non-GAAP operating income

$28M — $32M

$30M

$95M — $125M

$110M

Non-GAAP operating income margins

6.2% — 7.0%

6.6%

5.3% — 6.8%

6.1%

 

Digital First Quarter and Full Year 2024 Outlook

First Quarter 2024 Guidance

First Quarter 2024 Mid-Point

Full Year 2024 Guidance

Full Year 2024 Mid-Point

Revenue

$106M — $112M

$109M

$485M — $515M

$500M

Non-GAAP adjusted EBITDA

$11M — $13M

$12M

$66M — $80M

$73M

Non-GAAP adjusted EBITDA margins

10.1% — 11.3%

10.7%

13.5% — 15.5%

14.5%

Non-GAAP operating income

$8M — $10M

$9M

$55M — $69M

$62M

Non-GAAP operating income margins

7.6% — 8.9%

8.3%

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 over 60,000 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)

 

 

		Three months ended								Twelve months ended
		December 31,								December 31,
		2023				2022				2023				2022
Revenue		$	626,181			$	658,278			$	2,462,817			$	2,443,707
Operating Expenses:
Cost of services			505,814				495,339				1,932,877				1,856,518
Selling, general and administrative			74,744				80,602				290,873				287,433
Depreciation and amortization			24,904				31,730				101,272				111,791
Restructuring charges, net			3,145				1,412				8,041				5,673
Impairment losses			650				450				11,733				13,749
Total operating expenses			609,257				609,533				2,344,796				2,275,164
Income From Operations			16,924				48,745				118,021				168,543
Other income (expense), net			(21,988	)			(15,877	)			(77,297	)			(24,095	)
(Loss) / Income Before Income Taxes			(5,064	)			32,868				40,724				144,448
Provision for income taxes			(3,142	)			(7,318	)			(22,460	)			(27,115	)
Net (Loss) / Income			(8,206	)			25,550				18,264				117,333
Net income attributable to noncontrolling interest			(1,694	)			(3,197	)			(9,836	)			(14,093	)
Net (Loss) / Income Attributable to TTEC Stockholders		$	(9,900	)		$	22,353			$	8,428			$	103,240
Net (Loss) / Income Per Share
Basic		$	(0.17	)		$	0.54			$	0.39			$	2.49
Diluted		$	(0.17	)		$	0.54			$	0.39			$	2.48
Net (Loss) / Income Per Share Attributable to TTEC Stockholders
Basic		$	(0.21	)		$	0.47			$	0.18			$	2.19
Diluted		$	(0.21	)		$	0.47			$	0.18			$	2.18
Income From Operations Margin			2.7	%			7.4	%			4.8	%			6.9	%
Net (Loss) / Income Margin			(1.3	)%			3.9	%			0.7	%			4.8	%
Net (Loss) / Income Attributable to TTEC Stockholders Margin			(1.6	)%			3.4	%			0.3	%			4.2	%
Effective Tax Rate			(62.0	)%			22.3	%			55.2	%			18.8	%
Weighted Average Shares Outstanding
Basic			47,425				47,220				47,335				47,121
Diluted			47,503				47,299				47,419				47,335

 

 

 

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

 

		Three months ended								Twelve months ended
		December 31,								December 31,
		2023				2022				2023				2022
Revenue:
TTEC Digital		$	119,118			$	121,650			$	486,882			$	463,670
TTEC Engage			507,063				536,628				1,975,935				1,980,037
Total		$	626,181			$	658,278			$	2,462,817			$	2,443,707
Income From Operations:
TTEC Digital		$	9,982			$	9,924			$	29,846			$	34,895
TTEC Engage			6,942				38,821				88,175				133,648
Total		$	16,924			$	48,745			$	118,021			$	168,543

 

 

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

 

		December 31,				December 31,
		2023				2022
ASSETS
Current assets:
Cash and cash equivalents		$	172,747			$	153,435
Accounts receivable, net			394,868				417,637
Prepaids and other current assets			95,064				133,365
Income and other tax receivables			18,524				45,533
Total current assets			681,203				749,970
Property and equipment, net			191,003				183,360
Operating lease assets			121,574				92,431
Goodwill			808,988				807,845
Other intangibles assets, net			198,433				233,909
Income and other tax receivables, long-term			44,673				-
Other assets			139,724				86,447
Total assets		$	2,185,598			$	2,153,962
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	96,577			$	93,937
Accrued employee compensation and benefits			146,184				145,096
Deferred revenue			81,171				87,846
Current operating lease liabilities			38,271				35,271
Other current liabilities			40,824				49,214
Total current liabilities			403,027				411,364
Long-term liabilities:
Line of credit			995,000				960,000
Non-current operating lease liabilities			96,809				69,575
Other long-term liabilities			75,220				79,273
Total long-term liabilities			1,167,029				1,108,848
Redeemable noncontrolling interest			-				55,645
Equity:
Common stock			474				472
Additional paid in capital			407,415				367,673
Treasury stock			(589,807	)			(593,164	)
Accumulated other comprehensive income (loss)			(89,876	)			(126,301	)
Retained earnings			870,429				911,233
Noncontrolling interest			16,907				18,192
Total equity			615,542				578,105
Total liabilities and equity		$	2,185,598			$	2,153,962

 

 

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

 

		Twelve months ended				Twelve months ended
		December 31,				December 31,
		2023				2022
Cash flows from operating activities:
Net income		$	18,264			$	117,333
Adjustments to reconcile net income to net cash provided by operating activities :
Depreciation and amortization			101,272				111,791
Amortization of contract acquisition costs			2,288				2,065
Amortization of debt issuance costs			1,067				1,018
Imputed interest expense and fair value adjustments to contingent consideration			7,579				1,746
Provision for credit losses			2,009				9,391
Loss on disposal of assets			2,219				1,916
Loss on dissolution of subsidiary			301				-
Impairment losses			11,733				13,749
Deferred income taxes			(7,528	)			(11,001	)
Excess tax benefit from equity-based awards			1,705				(1,122	)
Equity-based compensation expense			22,071				17,571
Gain on foreign currency derivatives			(3	)			(7	)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable			22,359				(74,564	)
Prepaids and other assets			8,570				43,699
Accounts payable and accrued expenses			9,518				(12,695	)
Deferred revenue and other liabilities			(58,659	)			(83,842	)
Net cash provided by operating activities			144,765				137,048
Cash flows from investing activities:
Proceeds from sale of property and equipment			261				229
Purchases of property, plant and equipment			(67,839	)			(84,012	)
Acquisitions			-				(142,420	)
Net cash used in investing activities			(67,578	)			(226,203	)
Cash flows from financing activities:
Net proceeds from / (repayments of) line of credit			35,000				169,000
Payments on other debt			(2,317	)			(3,245	)
Payments of contingent consideration and hold back payments to acquisitions			(37,676	)			(9,600	)
Dividends paid to shareholders			(49,232	)			(48,072	)
Payments to noncontrolling interest			(10,972	)			(11,883	)
Tax payments related to the issuance of restricted stock units			(3,037	)			(7,164	)
Net cash (used in) / provided by financing activities			(68,234	)			89,036
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(2,112	)			(13,499	)
Increase / (decrease) in cash, cash equivalents and restricted cash			6,841				(13,618	)
Cash, cash equivalents and restricted cash, beginning of period			167,064				180,682
Cash, cash equivalents and restricted cash, end of period		$	173,905			$	167,064

 

 

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

 

 

		Three months ended								Twelve months ended
		December 31,								December 31,
		2023				2022				2023				2022
Revenue		$	626,181			$	658,278			$	2,462,817			$	2,443,707
Reconciliation of Non-GAAP Income from Operations and EBITDA:
Income from Operations		$	16,924			$	48,745			$	118,021			$	168,543
Restructuring charges, net			3,145				1,412				8,041				5,673
Impairment losses			650				450				11,733				13,749
Cybersecurity incident related impact, net of insurance recovery			-				(446	)			(3,210	)			(3,610	)
Software accelerated amortization			-				6,382				-				8,509
Write-off of acquisition related receivable			-				-				-				900
Property costs not related to operations			757				-				1,501				-
Liability related to notifications triggered by labor scheme(1)			6,000				-				6,000				-
Grant income for pandemic relief			-				-				40				-
Change in acquisition related obligation			-				-				483				-
Equity-based compensation expenses			5,661				4,331				22,071				17,571
Amortization of purchased intangibles			8,676				9,038				35,759				37,169
Non-GAAP Income from Operations		$	41,813			$	69,912			$	200,439			$	248,504
Non-GAAP Income from Operations Margin			6.7	%			10.6	%			8.1	%			10.2	%
Depreciation and amortization			15,894				16,310				64,840				66,113
Changes in acquisition contingent consideration			616				(272	)			7,480				1,798
Change in escrow balance related to acquisition			-				-				625				-
Loss on dissolution of subsidiary			-				-				301				-
Foreign exchange loss / (gain), net			1,112				1,710				1,950				(6,514	)
Other income (expense), net			(1,894	)			(1,156	)			(4,126	)			10,161
Adjusted EBITDA		$	57,541			$	86,504			$	271,509			$	320,062
Adjusted EBITDA Margin			9.2	%			13.1	%			11.0	%			13.1	%
Reconciliation of Non-GAAP EPS:
Net (Loss) / Income		$	(8,206	)		$	25,550			$	18,264			$	117,333
Add:  Asset impairment and restructuring charges			3,795				1,862				19,774				19,422
Add:  Equity-based compensation expenses			5,661				4,331				22,071				17,571
Add:  Amortization of purchased intangibles			8,676				9,038				35,759				37,169
Add:  Cybersecurity incident related impact, net of insurance recovery			-				(446	)			(3,210	)			(3,610	)
Add:  Software accelerated amortization			-				6,382				-				8,509
Add:  Write-off of acquisition related receivable			-				-				-				900
Add:  Property costs not related to operations			757				-				1,501				-
Add:  Liability related to notifications triggered by labor scheme			6,000				-				6,000				-
Add:  Grant income for pandemic relief			-				-				40				-
Add:  Change in acquisition related obligation			-				-				483				-
Add:  Changes in acquisition contingent consideration			616				(272	)			7,480				1,798
Add:  Changes in escrow balance related to acquisition			-				-				625				-
Add:  Loss on dissolution of subsidiary			-				-				301				-
Add:  Foreign exchange loss / (gain), net			1,112				1,710				1,950				(6,514	)
Less:  Changes in valuation allowance, return to provision adjustments and other, and tax effects of items separately disclosed above			(885	)			(4,909	)			(7,859	)			(22,872	)
Non-GAAP Net Income		$	17,526			$	43,246			$	103,179			$	169,706
Diluted shares outstanding			47,503				47,299				47,419				47,335
Non-GAAP EPS		$	0.37			$	0.91			$	2.18			$	3.59
Reconciliation of Free Cash Flow:
Cash Flow From Operating Activities:
Net (Loss) / Income		$	(8,206	)		$	25,550			$	18,264			$	117,333
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			24,904				31,730				101,272				111,791
Other			14,836				(39,045	)			25,229				(92,076	)
Net cash provided by operating activities			31,534				18,235				144,765				137,048
Less - Total Cash Capital Expenditures			13,117				19,448				67,839				84,012
Free Cash Flow		$	18,417			$	(1,213	)		$	76,926			$	53,036

 

^{(1) -} For further information, please see discussion in the Risk Factors section of the 2023 Form 10-K filed on February 29, 2024.

 

 

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

 

Reconciliation of Non-GAAP Income from Operations and Adjusted EBITDA by Segment :
		TTEC Engage								TTEC Digital								TTEC Engage								TTEC Digital
		Q4 23				Q4 22				Q4 23				Q4 22				YTD 23				YTD 22				YTD 23				YTD 22
Income from Operations		$	6,942			$	38,821			$	9,982			$	9,924			$	88,175			$	133,648			$	29,846			$	34,895
Restructuring charges, net			1,823				1,130				1,322				282				4,250				5,251				3,791				422
Impairment losses			700				24				(50	)			426				8,929				13,112				2,804				637
Cybersecurity incident related impact, net of insurance recovery			-				(446	)			-				-				(3,210	)			(3,610	)			-				-
Software accelerated amortization			-				5,106				-				1,276				-				6,808				-				1,701
Write-off of acquisition related receivable			-				-				-				-				-				-				-				900
Property costs not related to operations			757				-				-				-				1,501				-				-				-
Grant income for pandemic relief			-				-				-				-				40				-				-				-
Change in acquisition related obligation			-				-				-				-				-				-				483				-
Liability related to notifications triggered by labor scheme			6,000				-				-				-				6,000				-				-				-
Equity-based compensation expenses			3,658				2,659				2,003				1,672				14,257				11,476				7,814				6,095
Amortization of purchased intangibles			4,264				4,658				4,412				4,380				18,215				17,272				17,544				19,897
Non-GAAP Income from Operations		$	24,144			$	51,952			$	17,669			$	17,960			$	138,157			$	183,957			$	62,282			$	64,547
Depreciation and amortization			13,458				13,667				2,436				2,643				55,153				54,561				9,687				11,552
Changes in acquisition contingent consideration			616				(272	)			-				-				7,480				1,798				-				-
Change in escrow balance related to acquisition			-				-				-				-				625				-				-				-
Loss on dissolution of subsidiary			-				-				-				-				301				-				-				-
Foreign exchange loss / (gain), net			1,271				1,606				(159	)			104				2,085				(5,540	)			(135	)			(974	)
Other income (expense), net			(1,728	)			(1,063	)			(166	)			(93	)			(4,060	)			9,352				(66	)			809
Adjusted EBITDA		$	37,761			$	65,890			$	19,780			$	20,614			$	199,741			$	244,128			$	71,768			$	75,934

 

 

v3.24.0.1

Cover	Feb. 27, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 27, 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	9197 S. Peoria Street
Entity Address, City or Town	Englewood
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80112-5833
City Area Code	303
Local Phone Number	397-8100
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock of TTEC Holdings, Inc., $0.01 par value per share
Trading Symbol	TTEC
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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