TTEC Announces Second Quarter 2024 Financial Results
TTEC (NASDAQ:TTEC) reported its Q2 2024 financial results, with revenue of $534.1 million, an 11% decrease YoY. Operating loss was $224.4 million, largely due to $233.5 million in non-cash goodwill impairments.
Net loss reached $296.8 million, translating to a loss per share of $6.23. Non-GAAP net income, however, was $6.6 million with $0.14 per share.
The Adjusted EBITDA was $46.2 million, or 8.7% of revenue. Cash flow from operations was $49.3 million, while capital expenditures were $14.2 million. The company's net debt position increased to $853.4 million.
Segment-wise, TTEC Digital saw a modest 1% decline in revenue to $116.4 million, while TTEC Engage experienced a 13.5% drop to $417.7 million. The outlook for FY 2024 remains cautious, with TTEC adjusting its guidance to reflect current market challenges.
TTEC (NASDAQ:TTEC) ha riportato i risultati finanziari del secondo trimestre 2024, con un fatturato di 534,1 milioni di dollari, in diminuzione dell'11% rispetto all'anno precedente. La perdita operativa è stata di 224,4 milioni di dollari, principalmente a causa di 233,5 milioni di dollari in svalutazioni di avviamento non monetario.
La perdita netta ha raggiunto i 296,8 milioni di dollari, traducendosi in una perdita per azione di 6,23 dollari. Tuttavia, il reddito netto non-GAAP si è attestato a 6,6 milioni di dollari, corrispondente a 0,14 dollari per azione.
Il EBITDA Adjusted è stato di 46,2 milioni di dollari, pari all'8,7% del fatturato. Il flusso di cassa dalle operazioni è stato di 49,3 milioni di dollari, mentre gli investimenti in conto capitale sono stati di 14,2 milioni di dollari. La posizione netta di debito dell'azienda è aumentata a 853,4 milioni di dollari.
Per quanto riguarda i segmenti, TTEC Digital ha registrato una modesta diminuzione del fatturato dell'1% a 116,4 milioni di dollari, mentre TTEC Engage ha subito un calo del 13,5% a 417,7 milioni di dollari. Le prospettive per l'esercizio 2024 rimangono caute, con TTEC che ha modificato le proprie previsioni per riflettere le attuali sfide di mercato.
TTEC (NASDAQ:TTEC) reportó sus resultados financieros del segundo trimestre de 2024, con ingresos de 534.1 millones de dólares, lo que representa una disminución del 11% en comparación con el año pasado. La pérdida operativa fue de 224.4 millones de dólares, en gran parte debido a 233.5 millones de dólares en deterioros de buena voluntad no monetarios.
La pérdida neta alcanzó los 296.8 millones de dólares, lo que se traduce en una pérdida por acción de 6.23 dólares. Sin embargo, el ingreso neto no GAAP fue de 6.6 millones de dólares, equivalentes a 0.14 dólares por acción.
El EBITDA Ajustado fue de 46.2 millones de dólares, o el 8.7% de los ingresos. El flujo de efectivo de las operaciones fue de 49.3 millones de dólares, mientras que los gastos de capital fueron de 14.2 millones de dólares. La posición de deuda neta de la compañía aumentó a 853.4 millones de dólares.
Por segmento, TTEC Digital vio una modesta caída del 1% en los ingresos a 116.4 millones de dólares, mientras que TTEC Engage experimentó una caída del 13.5% a 417.7 millones de dólares. Las perspectivas para el año fiscal 2024 siguen siendo cautelosas, con TTEC ajustando su orientación para reflejar los desafíos actuales del mercado.
TTEC (NASDAQ:TTEC)는 2024년 2분기 재무 결과를 발표했으며, 수익은 5억 3410만 달러로 전년 대비 11% 감소했습니다. 운영 손실은 2억 2440만 달러로, 이는 주로 2억 3350만 달러의 비현금 상각 손실 때문입니다.
순손실은 2억 9680만 달러에 달했으며, 주당 손실은 6.23달러입니다. 그러나 비-GAAP 순이익은 660만 달러로 주당 0.14달러에 해당합니다.
조정된 EBITDA는 4620만 달러, 즉 수익의 8.7%입니다. 운영으로부터의 현금 흐름은 4930만 달러였고, 자본 지출은 1420만 달러였습니다. 회사의 순부채 위치는 8억 5340만 달러로 증가했습니다.
부문별로 TTEC Digital은 1%의 수익 감소를 경험하여 1억 1640만 달러가 되었고, TTEC Engage은 13.5% 감소하여 4억 1770만 달러에 달했습니다. 2024 회계연도에 대한 전망은 조심스러워, TTEC는 현재 시장의 도전을 반영하도록 가이던스를 조정했습니다.
TTEC (NASDAQ:TTEC) a annoncé ses résultats financiers pour le deuxième trimestre 2024, avec un chiffre d'affaires de 534,1 millions de dollars, représentant une diminution de 11% par rapport à l'année précédente. La perte d'exploitation s'élevait à 224,4 millions de dollars, principalement due à 233,5 millions de dollars de pertes de goodwill non monétaires.
La perte nette a atteint 296,8 millions de dollars, soit une perte par action de 6,23 dollars. Cependant, le résultat net ajusté (non-GAAP) était de 6,6 millions de dollars, équivalant à 0,14 dollars par action.
Le EBITDA Ajusté était de 46,2 millions de dollars, soit 8,7% du chiffre d'affaires. Le flux de trésorerie provenant des opérations était de 49,3 millions de dollars, tandis que les dépenses d'investissement étaient de 14,2 millions de dollars. La position nette de la dette de l'entreprise a augmenté à 853,4 millions de dollars.
Par segment, TTEC Digital a connu une légère baisse de 1% du chiffre d'affaires à 116,4 millions de dollars, tandis que TTEC Engage a subi une baisse de 13,5% à 417,7 millions de dollars. Les perspectives pour l'exercice 2024 restent prudentes, TTEC ajustant ses prévisions pour refléter les défis actuels du marché.
TTEC (NASDAQ:TTEC) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 bekannt gegeben, mit einem Umsatz von 534,1 Millionen Dollar, was einem Rückgang von 11% im Vergleich zum Vorjahr entspricht. Der operative Verlust belief sich auf 224,4 Millionen Dollar, vor allem aufgrund von 233,5 Millionen Dollar an nicht zahlungswirksamen Wertminderungen.
Der Nettoverlust betrug 296,8 Millionen Dollar, was einem Verlust von 6,23 Dollar pro Aktie entspricht. Das bereinigte Nettoergebnis (Non-GAAP) betrug jedoch 6,6 Millionen Dollar, was 0,14 Dollar pro Aktie entspricht.
Das bereinigte EBITDA lag bei 46,2 Millionen Dollar, oder 8,7% des Umsatzes. Der Cashflow aus dem operativen Geschäft betrug 49,3 Millionen Dollar, während die Investitionen 14,2 Millionen Dollar ausmachten. Die Nettoverschuldung des Unternehmens stieg auf 853,4 Millionen Dollar.
Segmentweise verzeichnete TTEC Digital einen moderaten Rückgang des Umsatzes um 1% auf 116,4 Millionen Dollar, während TTEC Engage einen Rückgang um 13,5% auf 417,7 Millionen Dollar erlebte. Der Ausblick für das Geschäftsjahr 2024 bleibt vorsichtig, da TTEC seine Prognose an die aktuellen Marktherausforderungen anpasst.
- Non-GAAP net income of $6.6 million.
- Adjusted EBITDA of $46.2 million, or 8.7% of revenue.
- Positive impact of $0.8 million from foreign exchange on Non-GAAP income.
- Revenue decreased by 11% YoY to $534.1 million.
- Operating loss of $224.4 million due to $233.5 million non-cash goodwill impairments.
- Net loss of $296.8 million for the quarter.
- Fully diluted net loss per share of $6.23, down from $0.08 in the prior year.
- Net debt increased to $853.4 million.
Insights
TTEC's Q2 2024 results reveal significant challenges, with a 11% YoY revenue decline to
The TTEC Engage segment, which accounts for about
Management's updated 2024 outlook suggests continued challenges, with full-year revenue guidance of
TTEC's Q2 results reflect broader industry trends in the CX technology sector. The significant revenue decline in the Engage segment suggests that clients are tightening budgets amid economic uncertainties. This aligns with the "softer demand and budget constraints" mentioned by CEO Ken Tuchman.
The company's focus on cost optimization and transformation initiatives in the Engage segment is important but may take time to yield results. The Digital segment's resilience, particularly in cloud-based offerings, indicates a shift in client preferences towards more technology-driven CX solutions.
TTEC's geographic expansion and efforts to attract new enterprise clients are positive steps, but the immediate outlook remains challenging. The updated guidance, projecting softer Q3 performance before a stronger Q4, suggests a cautious approach to market recovery. Investors should closely monitor the success of TTEC's diversification strategy and its ability to adapt to changing market demands in the CX industry.
TTEC's Q2 results highlight the diverging performance between its Digital and Engage segments. The Digital segment, focusing on tech-enabled CX solutions, showed resilience with only a slight revenue decline and improved Non-GAAP operating margins (
However, the Engage segment's significant underperformance indicates challenges in traditional customer care services. The
TTEC's emphasis on "CX technology professional and managed services" in the Digital segment aligns with industry trends towards more automated, AI-driven customer experiences. The company's ability to accelerate this transition while managing the decline in traditional services will be important for its long-term success in the evolving CX technology landscape.
Second Quarter 2024
Revenue was
Operating Loss of
Non-cash Goodwill Impairments and Related Tax Adjustments
(Operating Income of
Net Loss of
(Net Income of
Adjusted EBITDA was
Fully Diluted Net Loss Per Share of
Updated Outlook for Full Year 2024
"Our results this quarter are impacted by non-cash goodwill impairment charges and related tax adjustments. We continue to operate in a dynamic macroeconomic environment where clients are facing softer demand and budget constraints putting pressure on our top line in the Engage business, while our Digital business had a solid quarter," commented Ken Tuchman, chairman and chief executive officer of TTEC.
Tuchman continued, "We have continued to implement material cost optimization and transformation initiatives to improve the profitability of our Engage segment. In addition, we are making meaningful progress on our diversification strategy expanding our geographic footprint, attracting new enterprise clients, launching new solutions and deepening our partnerships. With these initiatives, we are confident in our ability to return the company to sustainable long-term growth and increased profitability."
SECOND QUARTER 2024 FINANCIAL HIGHLIGHTS
Revenue
- Second quarter 2024 GAAP revenue decreased 11.0 percent to
$534.1 million $600 - Foreign exchange had a
$1.8 million
Income (Loss) from Operations
- Second quarter 2024 GAAP loss from operations was
$224.4 million $31 $196 million impairment charge related to the fair value of the TTEC Engage reporting unit, in addition to other factors. - Non-GAAP income from operations, excluding restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, and other items, was
$29 $50.6 million - Foreign exchange had a
$0.8 million
Adjusted EBITDA
- Second quarter 2024 Non-GAAP Adjusted EBITDA was
$46.2 million $67
Net Income (Loss) Per Share
- Second quarter 2024 GAAP fully diluted net loss per share was
$6.23 $0.08 - Non-GAAP fully diluted net income per share was
$0.14 $0.55
CASH FLOW AND BALANCE SHEET
- Cash flow from operations in the second quarter of 2024 was
$49.3 million $95 - Capital expenditures in the second quarter of 2024 were
$14.2 million $19.3 million - As of June 30, 2024, TTEC had cash and cash equivalents of
$79.8 million $933 $853.4 million $804.2 million - As of June 30, 2024, TTEC's remaining borrowing capacity under its revolving credit facility was approximately
$100 million $265 million - On April 30, 2024, TTEC paid a dividend of
$0.06 $2.8 million
SEGMENT REPORTING & COMMENTARY
TTEC reports financial results for TTEC Digital and TTEC Engage business segments. Financial highlights for the two business segments are provided below.
TTEC Digital – Design, build and operate tech-enabled, insight-driven CX solutions
- Second quarter 2024 GAAP revenue for TTEC Digital decreased 1.0 percent to
$116.4 million $117.6 million $6.0 million $7.2 million - Non-GAAP income from operations was
$15.0 million $14.7 million
TTEC Engage – Digitally-enabled customer care, acquisition, and fraud mitigation services
- Second quarter 2024 GAAP revenue for TTEC Engage decreased 13.5 percent to
$417.7 million $482.8 million ( , or negative 55.2 percent of revenue, compared to operating income of$230.4) million $24.1 million - Non-GAAP income from operations was
$14.6 million $35.9 million - Foreign exchange had a
$1.7 million $0.8 million
BUSINESS OUTLOOK
"While our second quarter Non-GAAP results were largely in line with our expectations, we see continued pressure in the back half of the year primarily in our Engage business where operational execution remains a top priority," commented Kenny Wagers, chief financial officer of TTEC.
Wagers continued, "We are taking measurable actions in our Engage business to strengthen the foundation for increased profitability. This includes broad actions to align our Engage and corporate cost structure with forecasted revenue as well as initiatives to improve our operating efficiencies at the client program level. Our bottoms-up approach has been meticulous to deliver the intended benefits without impacting the quality of our service delivery and go-to-market platform as we position ourselves for 2025. In our Digital business, clients across numerous industries are increasingly using our CX technology professional and managed services, with particularly strong demand for our cloud-based offerings."
Wagers concluded, "We continue to believe that the second quarter will be the peak of the headwinds in our Engage business. While we expect moderate sequential top- and bottom-line improvement in the third quarter, we are forecasting softer third quarter performance than originally anticipated before seeing stronger results in the fourth quarter."
TTEC Full Year 2024 Outlook | |||
Full Year 2024 | Full Year 2024 | ||
Revenue | |||
Non-GAAP adjusted EBITDA | |||
Non-GAAP adjusted EBITDA margins | 9.3 % | ||
Non-GAAP operating income | |||
Non-GAAP operating income margins | 6.3 % | ||
Interest expense, net | ( | ( | |
Non-GAAP adjusted tax rate | 33 % | ||
Diluted share count | 47.5M — 47.7M | 47.6M | |
Non-GAAP earnings per a share | |||
Engage Full Year 2024 Outlook | |||
Full Year 2024 | Full Year 2024 | ||
Revenue | |||
Non-GAAP adjusted EBITDA | |||
Non-GAAP adjusted EBITDA margins | 7.8 % | ||
Non-GAAP operating income | |||
Non-GAAP operating income margins | 4.5 % | ||
Digital Full Year 2024 Outlook | |||
Full Year 2024 | Full Year 2024 | ||
Revenue | |||
Non-GAAP adjusted EBITDA | |||
Non-GAAP adjusted EBITDA margins | 15.0 % | ||
Non-GAAP operating income | |||
Non-GAAP operating income margins | 12.7 % |
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.
EARNINGS WEBCAST/CONFERENCE CALL
The Company will host a live webcast and conference call at 8:30 a.m. ET on Friday, August 9, 2024. You are invited to join a live webcast of the conference call by visiting the "Investors Relations" section of the TTEC website at www.ttec.com. If you are unable to participate during the live webcast, a replay will be available on the TTEC website.
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 54,000 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
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.
Corporate Comms | Investor Relations |
Marji Chimes | Paul Miller |
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, | ||||||||
2024 | 2023 | 2024 | 2023 | ||||||
Revenue | |||||||||
Operating Expenses: | |||||||||
Cost of services | 417,890 | 464,686 | 871,708 | 947,364 | |||||
Selling, general and administrative | 73,726 | 75,338 | 148,301 | 149,348 | |||||
Depreciation and amortization | 25,071 | 24,946 | 50,216 | 50,773 | |||||
Restructuring charges, net | 5,095 | 1,474 | 5,344 | 3,527 | |||||
Impairment losses | 236,716 | 2,652 | 236,856 | 6,959 | |||||
Total operating expenses | 758,498 | 569,096 | 1,312,425 | 1,157,971 | |||||
(Loss) / Income From Operations | (224,413) | 31,298 | (201,702) | 75,709 | |||||
Other income (expense), net | (18,229) | (21,439) | (38,111) | (37,011) | |||||
(Loss) / Income Before Income Taxes | (242,642) | 9,859 | (239,813) | 38,698 | |||||
Provision for income taxes | (54,126) | (6,102) | (56,455) | (14,024) | |||||
Net (Loss) / Income | (296,768) | 3,757 | (296,268) | 24,674 | |||||
Net (loss) / income attributable to noncontrolling interest | (2,771) | (2,546) | (5,576) | (4,816) | |||||
Net (Loss) / Income Attributable to TTEC Stockholders | $ 1,211 | $ (301,844) | $ 19,858 | ||||||
Net (Loss) / Income Per Share | |||||||||
Basic | $ (6.24) | $ 0.08 | $ (6.24) | $ 0.52 | |||||
Diluted | $ (6.23) | $ 0.08 | $ (6.23) | $ 0.52 | |||||
Net (Loss) / Income Per Share Attributable to TTEC Stockholders | |||||||||
Basic | $ (6.30) | $ 0.03 | $ (6.35) | $ 0.42 | |||||
Diluted | $ (6.29) | $ 0.03 | $ (6.34) | $ 0.42 | |||||
(Loss) / Income From Operations Margin | (42.0) % | 5.2 % | (18.2) % | 6.1 % | |||||
Net (Loss) / Income Margin | (55.6) % | 0.6 % | (26.7) % | 2.0 % | |||||
Net (Loss) / Income Attributable to TTEC Stockholders Margin | (56.1) % | 0.2 % | (27.2) % | 1.6 % | |||||
Effective Tax Rate | (22.3) % | 61.9 % | (23.5) % | 36.2 % | |||||
Weighted Average Shares Outstanding | |||||||||
Basic | 47,564 | 47,264 | 47,498 | 47,249 | |||||
Diluted | 47,623 | 47,453 | 47,585 | 47,417 | |||||
TTEC HOLDINGS, INC. AND SUBSIDIARIES | ||||||||
SEGMENT INFORMATION | ||||||||
(In thousands) | ||||||||
(unaudited) | ||||||||
Three months ended | Six months ended | |||||||
June 30, | June 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Revenue: | ||||||||
TTEC Digital | $ 116,368 | $ 117,585 | $ 228,399 | $ 234,512 | ||||
TTEC Engage | 417,717 | 482,809 | 882,324 | 999,168 | ||||
Total | $ 534,085 | $ 600,394 | ||||||
(Loss) / Income From Operations | ||||||||
TTEC Digital | $ 6,008 | $ 7,154 | $ 9,296 | $ 7,939 | ||||
TTEC Engage | (230,421) | 24,144 | (210,998) | 67,770 | ||||
Total | $ (224,413) | $ 31,298 | $ (201,702) | $ 75,709 | ||||
TTEC HOLDINGS, INC. AND SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(In thousands) | ||||
(unaudited) | ||||
June 30, | December 31, | |||
2024 | 2023 | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 79,780 | $ 172,747 | ||
Accounts receivable, net | 381,685 | 394,868 | ||
Prepaids and other current assets | 117,081 | 95,064 | ||
Income and other tax receivables | 24,872 | 18,524 | ||
Total current assets | 603,418 | 681,203 | ||
Property and equipment, net | 149,114 | 191,003 | ||
Assets Held for Sale | 29,449 | - | ||
Operating lease assets | 106,185 | 121,574 | ||
Goodwill | 573,625 | 808,988 | ||
Other intangibles assets, net | 181,338 | 198,433 | ||
Income and other tax receivables, long-term | 37,194 | 44,673 | ||
Other assets | 112,298 | 139,724 | ||
Total assets | $ 1,792,621 | $ 2,185,598 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities: | ||||
Accounts payable | $ 87,115 | $ 96,577 | ||
Accrued employee compensation and benefits | 132,824 | 146,184 | ||
Deferred revenue | 77,783 | 81,171 | ||
Current operating lease liabilities | 35,650 | 38,271 | ||
Other current liabilities | 54,284 | 40,824 | ||
Total current liabilities | 387,656 | 403,027 | ||
Long-term liabilities: | ||||
Line of credit | 930,000 | 995,000 | ||
Non-current operating lease liabilities | 83,855 | 96,809 | ||
Other long-term liabilities | 86,934 | 75,220 | ||
Total long-term liabilities | 1,100,789 | 1,167,029 | ||
Equity: | ||||
Common stock | 476 | 474 | ||
Additional paid in capital | 414,728 | 407,415 | ||
Treasury stock | (586,812) | (589,807) | ||
Accumulated other comprehensive income (loss) | (107,581) | (89,876) | ||
Retained earnings | 565,738 | 870,429 | ||
Noncontrolling interest | 17,627 | 16,907 | ||
Total equity | 304,176 | 615,542 | ||
Total liabilities and equity | $ 1,792,621 | $ 2,185,598 | ||
TTEC HOLDINGS, INC. AND SUBSIDIARIES | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(In thousands) | |||
(unaudited) | |||
Six Months Ended | Six Months Ended | ||
June 30, | June 30, | ||
2024 | 2023 | ||
Cash flows from operating activities: | |||
Net (loss) income | $ (296,268) | $ 24,674 | |
Adjustment to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 50,216 | 50,773 | |
Amortization of contract acquisition costs | 677 | 1,158 | |
Amortization of debt issuance costs | 985 | 534 | |
Imputed interest expense and fair value adjustments to contingent consideration | (1,047) | 6,762 | |
Provision for credit losses | 2,644 | 1,704 | |
Loss on disposal of assets | 1,252 | 856 | |
Impairment losses | 236,856 | 6,959 | |
Loss on dissolution of subsidiary | - | 301 | |
Deferred income taxes | 37,148 | (10,390) | |
Excess tax benefit from equity-based awards | 1,732 | 243 | |
Equity-based compensation expense | 10,916 | 9,802 | |
Loss / (gain) on foreign currency derivatives | 145 | 247 | |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | 8,315 | 14,645 | |
Prepaids and other assets | (10,804) | 20,324 | |
Accounts payable and accrued expenses | (996) | 43,429 | |
Deferred revenue and other liabilities | (8,126) | (27,072) | |
Net cash provided by operating activities | 33,645 | 144,949 | |
Cash flows from investing activities: | |||
Proceeds from sale of property, plant and equipment | 116 | 28 | |
Purchases of property, plant and equipment | (27,682) | (32,954) | |
Net cash used in investing activities | (27,566) | (32,926) | |
Cash flows from financing activities: | |||
Net proceeds from / (repayments of) line of credit | (65,000) | (45,000) | |
Payments on other debt | (1,379) | (1,217) | |
Payments of contingent consideration and hold back payments to acquisitions | - | (37,676) | |
Dividends paid to shareholders | (2,847) | (24,572) | |
Payments to noncontrolling interest | (4,770) | (5,887) | |
Tax payments related to the issuance of restricted stock units | (606) | (629) | |
Payments of debt issuance costs | (1,100) | - | |
Net cash used in financing activities | (75,702) | (114,981) | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (4,612) | 1,275 | |
(Decrease) in cash, cash equivalents and restricted cash | (74,235) | (1,683) | |
Cash, cash equivalents and restricted cash, beginning of period | 173,905 | 167,064 | |
Cash, cash equivalents and restricted cash, end of period | $ 99,670 | $ 165,381 | |
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, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Revenue | $ 534,085 | $ 600,394 | |||||||||
Reconciliation of Non-GAAP Income from Operations and EBITDA: | |||||||||||
Net (Loss) / Income from Operations | $ 31,298 | $ (201,702) | $ 75,709 | ||||||||
Restructuring charges, net | 5,095 | 1,474 | 5,344 | 3,527 | |||||||
Impairment losses | 236,716 | 2,652 | 236,856 | 6,959 | |||||||
Cybersecurity incident related impact, net of insurance recovery | - | 26 | - | (3,210) | |||||||
Grant income for pandemic relief | - | 40 | - | 40 | |||||||
Property costs not related to operations | 872 | - | 1,905 | - | |||||||
Change in acquisition related obligation | - | 483 | - | 483 | |||||||
Liability related to notifications triggered by labor scheme (1) | (2,275) | - | (2,750) | - | |||||||
Equity-based compensation expenses | 5,104 | 5,648 | 10,916 | 9,802 | |||||||
Amortization of purchased intangibles | 8,439 | 9,007 | 16,884 | 18,010 | |||||||
Non-GAAP Income from Operations | $ 29,538 | $ 50,628 | $ 67,453 | $ 111,320 | |||||||
Non-GAAP Income from Operations Margin | 5.5 % | 8.4 % | 6.1 % | 9.0 % | |||||||
Depreciation and amortization | 16,210 | 15,939 | 32,279 | 32,763 | |||||||
Changes in acquisition contingent consideration | 193 | 3,584 | (1,047) | 6,762 | |||||||
Change in escrow balance related to acquisition | - | - | - | 625 | |||||||
Loss on dissolution of subsidiary | - | - | - | 301 | |||||||
Foreign SS Tax Recovery | (853) | - | (853) | - | |||||||
Foreign VAT receivable writeoff | - | - | 770 | - | |||||||
Foreign exchange loss / (gain), net | (636) | 578 | 556 | 1,212 | |||||||
Other Income (expense), net | 1,788 | (3,574) | 1,994 | (2,919) | |||||||
Adjusted EBITDA | $ 46,240 | $ 67,155 | $ 101,152 | $ 150,064 | |||||||
Adjusted EBITDA Margin | 8.7 % | 11.2 % | 9.1 % | 12.2 % | |||||||
Reconciliation of Non-GAAP EPS: | |||||||||||
Net Income | $ 3,757 | $ (296,268) | $ 24,674 | ||||||||
Add: Asset impairment and restructuring charges | 241,811 | 4,126 | 242,200 | 10,486 | |||||||
Add: Equity-based compensation expenses | 5,104 | 5,648 | 10,916 | 9,802 | |||||||
Add: Amortization of purchased intangibles | 8,439 | 9,007 | 16,884 | 18,010 | |||||||
Add: Cybersecurity incident related impact, net of insurance recovery | - | 26 | - | (3,210) | |||||||
Add: Grant income for pandemic relief | - | 40 | - | 40 | |||||||
Add: Change in acquisition related obligation | - | 483 | - | 483 | |||||||
Add: Property costs not related to operations | 872 | - | 1,905 | - | |||||||
Add: Liability related to notifications triggered by labor scheme | (2,275) | - | (2,750) | - | |||||||
Add: Foreign SS Tax Recovery | (853) | - | (853) | - | |||||||
Add: Foreign VAT receivable writeoff | - | - | 770 | - | |||||||
Add: Changes in acquisition contingent consideration | 193 | 3,584 | (1,047) | 6,762 | |||||||
Add: Changes in escrow balance related to acquisition | - | - | - | 625 | |||||||
Add: Loss on dissolution of subsidiary | - | - | - | 301 | |||||||
Add: Foreign exchange loss / (gain), net | (636) | 578 | 556 | 1,212 | |||||||
Less: Changes in valuation allowance, return to provision adjustments and | 50,748 | (1,349) | 46,942 | (6,384) | |||||||
Non-GAAP Net Income | $ 6,635 | $ 25,900 | $ 19,255 | $ 62,801 | |||||||
Diluted shares outstanding | 47,623 | 47,453 | 47,585 | 47,417 | |||||||
Non-GAAP EPS | |||||||||||
Reconciliation of Free Cash Flow: | |||||||||||
Cash Flow From Operating Activities: | |||||||||||
Net (loss) / income | $ 3,757 | $ (296,268) | $ 24,674 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 25,071 | 24,946 | 50,216 | 50,773 | |||||||
Other | 320,971 | 67,188 | 279,697 | 69,502 | |||||||
Net cash provided by operating activities | 49,274 | 95,891 | 33,645 | 144,949 | |||||||
Less - Total Cash Capital Expenditures | 14,209 | 19,285 | 27,682 | 32,954 | |||||||
Free Cash Flow | $ 35,065 | $ 76,606 | $ 5,963 | $ 111,995 | |||||||
(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 | TTEC Engage | TTEC Digital | |||||||||||
Q2 24 | Q2 23 | Q2 24 | Q2 23 | YTD 24 | YTD 23 | YTD 24 | YTD 23 | |||||||
(Loss) / Income from Operations | $ 24,144 | $ 6,008 | $ 7,154 | $ (210,999) | $ 67,770 | $ 9,297 | $ 7,939 | |||||||
Restructuring charges, net | 4,842 | 801 | 253 | 673 | 5,495 | 1,793 | (151) | 1,734 | ||||||
Impairment losses | 234,205 | 2,652 | 2,511 | - | 234,345 | 4,105 | 2,511 | 2,854 | ||||||
Cybersecurity incident related impact, net of insurance recovery | 26 | - | (3,210) | - | - | |||||||||
Grant income for pandemic relief | 40 | - | 40 | - | - | |||||||||
Property costs not related to operations | 872 | - | - | 1,905 | - | - | - | |||||||
Change in acquisition related obligation | - | 483 | - | - | 483 | |||||||||
Liability related to notifications triggered by labor scheme | (2,275) | - | - | (2,750) | - | - | - | |||||||
Equity-based compensation expenses | 3,264 | 3,596 | 1,840 | 2,052 | 7,047 | 6,272 | 3,869 | 3,530 | ||||||
Amortization of purchased intangibles | 4,101 | 4,652 | 4,338 | 4,355 | 8,208 | 9,302 | 8,676 | 8,708 | ||||||
Non-GAAP Income from Operations | $ 14,588 | $ 35,911 | $ 14,950 | $ 14,717 | $ 43,251 | $ 86,072 | $ 24,202 | $ 25,248 | ||||||
Depreciation and amortization | 13,534 | 13,572 | 2,676 | 2,367 | 26,891 | 27,888 | 5,388 | 4,875 | ||||||
Changes in acquisition contingent consideration | 193 | 3,584 | - | (1,047) | 6,762 | - | - | |||||||
Change in escrow balance related to acquisition | - | - | - | 625 | - | - | ||||||||
Loss on dissolution of subsidiary | - | - | - | 301 | - | - | ||||||||
Foreign VAT receivable writeoff | - | - | 770 | - | ||||||||||
Foreign SS Tax Recovery | (853) | (853) | ||||||||||||
Foreign exchange loss / (gain), net | (585) | 411 | (51) | 167 | 793 | 1,112 | (238) | 100 | ||||||
Other Income (expense), net | 1,733 | (3,422) | 55 | (152) | 1,777 | (2,910) | 218 | (9) | ||||||
Adjusted EBITDA | $ 28,610 | $ 50,056 | $ 17,630 | $ 17,099 | $ 71,582 | $ 119,850 | $ 29,570 | $ 30,214 | ||||||
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SOURCE TTEC Holdings, Inc.
FAQ
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