TTEC Announces Third Quarter 2024 Financial Results
TTEC announced its third quarter 2024 financial results, reporting a 12.2% decline in revenue to $529.4 million compared to the prior year. The company posted a GAAP net loss of $19.0 million and a negative $0.40 fully diluted net loss per share. Adjusted EBITDA was $50.3 million, or 9.5% of revenue. Cash flow from operations was a negative $91.4 million, primarily impacted by the discontinuation of the accounts receivable factoring facility. TTEC's net debt increased to $931.5 million. Segment-wise, TTEC Digital revenue fell 13.2% to $115.7 million, while TTEC Engage revenue decreased 11.9% to $413.8 million. The company sold a real estate asset for $45.5 million to reduce debt and suspended its semi-annual cash dividend. Full-year 2024 guidance projects revenue of $2,210M-$2,260M and Non-GAAP EPS of $0.64-$0.83.
TTEC ha annunciato i risultati finanziari del terzo trimestre 2024, riportando un declino del 12,2% nei ricavi, pari a 529,4 milioni di dollari rispetto all'anno precedente. L'azienda ha registrato una perdita netta GAAP di 19,0 milioni di dollari e una perdita netta completamente diluita di $0,40 per azione. L'EBITDA rettificato è stato di 50,3 milioni di dollari, ovvero 9,5% dei ricavi. Il flusso di cassa operativo è stato negativo per 91,4 milioni di dollari, principalmente impattato dalla cessazione della struttura di factoring dei crediti. Il debito netto di TTEC è aumentato a 931,5 milioni di dollari. Per quanto riguarda i segmenti, i ricavi di TTEC Digital sono diminuiti del 13,2% a 115,7 milioni di dollari, mentre i ricavi di TTEC Engage sono calati dell'11,9% a 413,8 milioni di dollari. L'azienda ha venduto un'immobile per 45,5 milioni di dollari per ridurre il debito e ha sospeso il dividendo in contante semestrale. Le previsioni per l'intero anno 2024 prevedono ricavi tra 2,210M-$2,260M e un EPS Non-GAAP di $0,64-$0,83.
TTEC anunció sus resultados financieros del tercer trimestre de 2024, informando una disminución del 12,2% en ingresos a $529,4 millones en comparación con el año anterior. La compañía reportó una pérdida neta GAAP de $19,0 millones y una pérdida neta totalmente diluida de $0,40 por acción. El EBITDA ajustado fue de $50,3 millones, o 9,5% de los ingresos. El flujo de efectivo de las operaciones fue negativo en $91,4 millones, principalmente afectado por la cancelación de la instalación de factoring de cuentas por cobrar. La deuda neta de TTEC aumentó a $931,5 millones. Por segmentos, los ingresos de TTEC Digital cayeron un 13,2% a $115,7 millones, mientras que los ingresos de TTEC Engage disminuyeron un 11,9% a $413,8 millones. La compañía vendió un activo inmobiliario por $45,5 millones para reducir la deuda y suspendió su dividendo en efectivo semestral. La guía para el año completo 2024 proyecta ingresos de $2,210M-$2,260M y un EPS No GAAP de $0,64-$0,83.
TTEC는 2024년 3분기 재무 결과를 발표하며 매출이 12.2% 감소하여 5억 2940만 달러에 달한다고 보도했습니다. 회사는 GAAP 기준 순손실이 1900만 달러로 기록되었고, 주당 0.40 달러의 순손실이 발생했다고 전했습니다. 조정된 EBITDA는 5030만 달러로, 매출의 9.5%에 해당합니다. 운영에서 발생한 현금 흐름은 주로 외상매출금 팩토링 시설 중단으로 인해 9140만 달러의 부정적 결과를 보였습니다. TTEC의 순부채는 9억 3150만 달러로 증가했습니다. 부문별로 볼 때, TTEC 디지털 부문의 매출은 13.2% 감소하여 1억 1570만 달러로, TTEC 엔게이지 부문의 매출은 11.9% 감소하여 4억 1380만 달러에 도달했습니다. 이 회사는 부채를 줄이기 위해 4550만 달러에 부동산 자산을 매각했으며 반기 현금 배당금을 중단했습니다. 2024년 전체 연도 가이드는 매출이 $2,210M-$2,260M이고 비-GAAP EPS는 $0.64-$0.83로 예상하고 있습니다.
TTEC a annoncé ses résultats financiers du troisième trimestre 2024, signalant une baisse de 12,2% des revenus à 529,4 millions de dollars par rapport à l'année précédente. L'entreprise a enregistré une perte nette GAAP de 19,0 millions de dollars et une perte nette entièrement diluée de 0,40 $ par action. L'EBITDA ajusté s'est élevé à 50,3 millions de dollars, soit 9,5 % des revenus. Le flux de trésorerie d'exploitation était négatif de 91,4 millions de dollars, principalement impacté par l'arrêt de l'installation de factoring des comptes clients. La dette nette de TTEC a augmenté à 931,5 millions de dollars. Par segment, les revenus de TTEC Digital ont baissé de 13,2% à 115,7 millions de dollars, tandis que les revenus de TTEC Engage ont diminué de 11,9% à 413,8 millions de dollars. L'entreprise a vendu un actif immobilier pour 45,5 millions de dollars afin de réduire sa dette et a suspendu son dividende en espèces semestriel. Les prévisions pour l'année 2024 projettent des revenus de 2,210M-$2,260M et un EPS non-GAAP de $0,64-$0,83.
TTEC hat die finanziellen Ergebnisse des dritten Quartals 2024 bekannt gegeben und berichtet von einem Rückgang von 12,2% bei den Einnahmen auf 529,4 Millionen US-Dollar im Vergleich zum Vorjahr. Das Unternehmen verzeichnete einen GAAP-Nettoverlust von 19,0 Millionen US-Dollar und einen negativen Nettoverlust von 0,40 US-Dollar pro Aktie. Das bereinigte EBITDA betrug 50,3 Millionen US-Dollar, was 9,5% der Einnahmen entspricht. Der Cashflow aus dem operativen Geschäft war negativ mit 91,4 Millionen US-Dollar, was hauptsächlich durch die Einstellung der Factoring-Service für Forderungen beeinflusst wurde. Die Nettoverschuldung von TTEC stieg auf 931,5 Millionen US-Dollar. Segmentweise fielen die Einnahmen von TTEC Digital um 13,2% auf 115,7 Millionen US-Dollar, während die Einnahmen von TTEC Engage um 11,9% auf 413,8 Millionen US-Dollar sanken. Das Unternehmen verkaufte ein Immobilienobjekt für 45,5 Millionen US-Dollar, um die Schulden zu reduzieren, und stellte die halbjährliche Barausschüttung ein. Die Prognose für das gesamte Jahr 2024 rechnet mit Einnahmen zwischen 2,210M-$2,260M und einem Non-GAAP EPS von $0,64-$0,83.
- Adjusted EBITDA of $50.3 million, 9.5% of revenue
- Sale of real estate asset for $45.5 million to reduce debt
- Full-year 2024 guidance projects revenue of $2,210M-$2,260M and Non-GAAP EPS of $0.64-$0.83
- 12.2% decline in revenue to $529.4 million
- GAAP net loss of $19.0 million
- Negative $0.40 fully diluted net loss per share
- Cash flow from operations negative $91.4 million
- Net debt increased to $931.5 million
- TTEC Digital revenue fell 13.2% to $115.7 million
- TTEC Engage revenue decreased 11.9% to $413.8 million
Insights
Third Quarter 2024
Revenue was
Operating Income of
(Operating Income of
Net Loss of
(Net Income of
Adjusted EBITDA was
Fully Diluted Net Loss Per Share of
"We remain focused on executing our diversification strategies, enhancing our portfolio of AI-enabled CX solutions and our operational agility, while working to strengthen our financial performance," commented Ken Tuchman, chief executive officer of TTEC. "The industry dynamics and macroeconomic environment continue to create headwinds as select clients delay decision-making and/or focus on near-term cost savings."
"While taking more time than expected, we are prudently working through various challenges during this transitional year. We are executing against our top strategic priorities alongside taking the necessary profit improvement actions to strengthen our balance sheet and return the company to long-term revenue growth and increased profitability," Tuchman concluded.
THIRD QUARTER 2024 FINANCIAL HIGHLIGHTS
Revenue
- Third quarter 2024 GAAP revenue decreased 12.2 percent to
$529.4 million $603 - Foreign exchange had a
$0.5 million
Income (Loss) from Operations
- Third quarter 2024 GAAP income from operations was
$12.9 million $25 - Non-GAAP income from operations, excluding restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, and other items, was
$34 $47.3 million - Foreign exchange had a
$2.6 million
Adjusted EBITDA
- Third quarter 2024 Non-GAAP Adjusted EBITDA was
$50.3 million $63
Net Income (Loss)
- Third quarter 2024 GAAP net loss was
$19.0 million $1.8 million - Non-GAAP net income was
$5.4 million $22.9 million
Net Income (Loss) Per Share
- Third quarter 2024 GAAP fully diluted net loss per share was
$0.40 $0.04 - Non-GAAP fully diluted net income per share was
$0.11 $0.48
CASH FLOW AND BALANCE SHEET
- Cash flow from operations in the third quarter of 2024 was a negative
$91.4 million $31 - Free cash flow in the third quarter of 2024 was a negative
$100.2 million $53.5 million $81.8 million $101.2 million $18.4 million - Capital expenditures in the third quarter of 2024 were
$8.8 million $21.8 million - As of September 30, 2024, TTEC had cash and cash equivalents of
$96.9 million $1,028 $931.5 million $815.7 million - As of September 30, 2024, TTEC's remaining borrowing capacity under its revolving credit facility was approximately
$140 million $215 million - On November 4, 2024, the Board of Directors of the Company suspended the Company's semi-annual cash dividend as part of its ongoing shift to prioritize debt reduction associated with strategic acquisitions and other investments in the business. The Board expects to review the dividend suspension in the future to determine, in light of facts and circumstances at that time, whether and when to reinstate a semi-annual cash dividend.
SALE OF MATERIAL ASSET NOT USED IN OPERATIONS
On November 5, 2024, the Company closed the transaction of a real estate asset held for sale in
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
- Third quarter 2024 GAAP revenue for TTEC Digital decreased 13.2 percent to
$115.7 million $133.3 million $7.5 million $11.9 million - Non-GAAP income from operations was
$14.4 million $19.4 million
TTEC Engage – Digitally-enabled customer care, acquisition, and fraud mitigation services
- Third quarter 2024 GAAP revenue for TTEC Engage decreased 11.9 percent to
$413.8 million $469.7 million $5.4 million $13.5 million - Non-GAAP income from operations was
$19.7 million $27.9 million - Foreign exchange had a
$0.6 million $2.6 million
BUSINESS OUTLOOK
"We are achieving many of the key objectives that we set forth during this transitional year," commented Kenny Wagers, chief financial officer of TTEC. "In TTEC Digital, we are diversifying our CX technology partnerships and broadening our expertise and capabilities across Contact Center, CRM, AI and analytics solutions. In TTEC Engage, we are launching new client programs across our expanded geographic footprint, working through the previously mentioned headwinds, and executing upon our profit optimization initiatives.
Wagers continued, "At the company level, we are re-iterating full year 2024 guidance near the lower end of the range that we provided last quarter. At the segment level, the appropriate contribution adjustments were made to reflect our third-quarter actual results and updated fourth-quarter forecasts. As we prepare to transition into 2025, we remain focused on our strategic priorities and resolute in our ability to return TTEC to long-term organic growth and increased profitability."
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 | 43 % | ||
Diluted share count | 47.6M — 47.8M | 47.7M | |
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 | 8.1 % | ||
Non-GAAP operating income | |||
Non-GAAP operating income margins | 4.9 % | ||
Digital Full Year 2024 Outlook | |||
Full Year 2024 | Full Year 2024 | ||
Revenue | |||
Non-GAAP adjusted EBITDA | |||
Non-GAAP adjusted EBITDA margins | 13.8 % | ||
Non-GAAP operating income | |||
Non-GAAP operating income margins | 11.5 % |
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, Non-GAAP adjusted tax rate, 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 Thursday, November 7, 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 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 and related oral statements contain "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 operations, reiteration of the Company's full year 2024 guidance near the lower end of the ranges provided in the third quarter of 2024, effective tax rate, cash flow, leverage, liquidity, business strategy, profit improvement actions, increased profitability, competitive position, strategic priorities, organic growth, 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, operational and financial 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," "reiterate," "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 could affect our business and may cause such differences as noted above and 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 or furnishings 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 or the timing thereof."
TTEC HOLDINGS, INC. AND SUBSIDIARIES | |||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(In thousands, except per share data) | |||||||||
(unaudited) | |||||||||
Three months ended | Nine months ended | ||||||||
September 30, | September 30, | ||||||||
2024 | 2023 | 2024 | 2023 | ||||||
Revenue | $ 529,427 | $ 602,956 | |||||||
Operating Expenses: | |||||||||
Cost of services | 415,226 | 479,699 | 1,286,934 | 1,427,063 | |||||
Selling, general and administrative | 71,580 | 66,781 | 219,881 | 216,129 | |||||
Depreciation and amortization | 24,042 | 25,595 | 74,258 | 76,368 | |||||
Restructuring charges, net | 1,002 | 1,369 | 6,346 | 4,896 | |||||
Impairment losses | 4,688 | 4,124 | 241,544 | 11,083 | |||||
Total operating expenses | 516,538 | 577,568 | 1,828,963 | 1,735,539 | |||||
(Loss) / Income From Operations | 12,889 | 25,388 | (188,813) | 101,097 | |||||
Other income (expense), net | (22,462) | (18,298) | (60,573) | (55,309) | |||||
(Loss) / Income Before Income Taxes | (9,573) | 7,090 | (249,386) | 45,788 | |||||
Provision for income taxes | (9,395) | (5,294) | (65,850) | (19,318) | |||||
Net (Loss) / Income | (18,968) | 1,796 | (315,236) | 26,470 | |||||
Net (loss) / income attributable to noncontrolling interest | (2,154) | (3,326) | (7,730) | (8,142) | |||||
Net (Loss) / Income Attributable to TTEC Stockholders | $ (21,122) | $ (1,530) | $ (322,966) | $ 18,328 | |||||
Net (Loss) / Income Per Share | |||||||||
Basic | $ (0.40) | $ 0.04 | $ (6.63) | $ 0.56 | |||||
Diluted | $ (0.40) | $ 0.04 | $ (6.62) | $ 0.56 | |||||
Net (Loss) / Income Per Share Attributable to TTEC Stockholders | |||||||||
Basic | $ (0.44) | $ (0.03) | $ (6.79) | $ 0.39 | |||||
Diluted | $ (0.44) | $ (0.03) | $ (6.78) | $ 0.39 | |||||
(Loss) / Income From Operations Margin | 2.4 % | 4.2 % | (11.5) % | 5.5 % | |||||
Net (Loss) / Income Margin | (3.6) % | 0.3 % | (19.2) % | 1.4 % | |||||
Net (Loss) / Income Attributable to TTEC Stockholders Margin | (4.0) % | (0.3) % | (19.7) % | 1.0 % | |||||
Effective Tax Rate | (98.1) % | 74.7 % | (26.4) % | 42.2 % | |||||
Weighted Average Shares Outstanding | |||||||||
Basic | 47,723 | 47,415 | 47,573 | 47,305 | |||||
Diluted | 47,860 | 47,488 | 47,618 | 47,417 | |||||
TTEC HOLDINGS, INC. AND SUBSIDIARIES | ||||||||
SEGMENT INFORMATION | ||||||||
(In thousands) | ||||||||
(unaudited) | ||||||||
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Revenue: | ||||||||
TTEC Digital | $ 115,669 | $ 133,252 | $ 344,068 | $ 367,764 | ||||
TTEC Engage | 413,758 | 469,704 | 1,296,082 | 1,468,872 | ||||
Total | $ 529,427 | $ 602,956 | $ 1,640,150 | |||||
(Loss) / Income From Operations | ||||||||
TTEC Digital | $ 7,474 | $ 11,925 | $ 16,770 | $ 19,864 | ||||
TTEC Engage | 5,415 | 13,463 | (205,583) | 81,233 | ||||
Total | $ 12,889 | $ 25,388 | $ (188,813) | $ 101,097 | ||||
TTEC HOLDINGS, INC. AND SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(In thousands) | ||||
(unaudited) | ||||
September 30, | December 31, | |||
2024 | 2023 | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 96,929 | $ 172,747 | ||
Accounts receivable, net | 430,092 | 394,868 | ||
Prepaids and other current assets | 105,355 | 95,064 | ||
Income and other tax receivables | 20,690 | 18,524 | ||
Total current assets | 653,066 | 681,203 | ||
Property and equipment, net | 146,358 | 191,003 | ||
Assets Held for Sale | 29,640 | - | ||
Operating lease assets | 100,263 | 121,574 | ||
Goodwill | 575,096 | 808,988 | ||
Other intangibles assets, net | 173,227 | 198,433 | ||
Income and other tax receivables, long-term | 34,469 | 44,673 | ||
Other assets | 114,171 | 139,724 | ||
Total assets | $ 1,826,290 | $ 2,185,598 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities: | ||||
Accounts payable | $ 82,259 | $ 96,577 | ||
Accrued employee compensation and benefits | 121,255 | 146,184 | ||
Deferred revenue | 70,834 | 81,171 | ||
Current operating lease liabilities | 35,217 | 38,271 | ||
Other current liabilities | 29,085 | 40,824 | ||
Total current liabilities | 338,650 | 403,027 | ||
Long-term liabilities: | ||||
Line of credit | 1,025,000 | 995,000 | ||
Non-current operating lease liabilities | 79,909 | 96,809 | ||
Other long-term liabilities | 87,597 | 75,220 | ||
Total long-term liabilities | 1,192,506 | 1,167,029 | ||
Equity: | ||||
Common stock | 477 | 474 | ||
Additional paid-in capital | 416,813 | 407,415 | ||
Treasury stock | (584,904) | (589,807) | ||
Accumulated other comprehensive income (loss) | (99,697) | (89,876) | ||
Retained earnings | 544,616 | 870,429 | ||
Non-controlling interest | 17,829 | 16,907 | ||
Total equity | 295,134 | 615,542 | ||
Total liabilities and equity | $ 1,826,290 | $ 2,185,598 | ||
TTEC HOLDINGS, INC. AND SUBSIDIARIES | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(In thousands) | |||
(unaudited) | |||
Nine Months Ended | Nine Months Ended | ||
September 30, | September 30, | ||
2024 | 2023 | ||
Cash flows from operating activities: | |||
Net (loss) income | $ (315,236) | $ 26,470 | |
Adjustment to reconcile net (loss) income to net cash provided by operating activities : | |||
Depreciation and amortization | 74,258 | 76,368 | |
Amortization of contract acquisition costs | 1,363 | 1,596 | |
Amortization of debt issuance costs | 1,578 | 801 | |
Imputed interest expense and fair value adjustments to contingent consideration | (1,496) | 6,864 | |
Provision for credit losses | 2,744 | 1,677 | |
Loss on disposal of assets | 1,778 | 1,176 | |
Impairment losses | 241,544 | 11,083 | |
Loss on dissolution of subsidiary | - | 301 | |
Deferred income taxes | 38,922 | (12,288) | |
Excess tax benefit from equity-based awards | 3,921 | 1,807 | |
Equity-based compensation expense | 15,249 | 16,410 | |
Loss / (gain) on foreign currency derivatives | 244 | 552 | |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | (37,497) | 34,995 | |
Prepaids and other assets | (12,959) | (1,620) | |
Accounts payable and accrued expenses | (49,122) | (8,453) | |
Deferred revenue and other liabilities | (23,023) | (44,508) | |
Net cash provided by operating activities | (57,732) | 113,231 | |
Cash flows from investing activities: | |||
Proceeds from sale of property, plant and equipment | 146 | 246 | |
Purchases of property, plant and equipment | (36,465) | (54,722) | |
Net cash used in investing activities | (36,319) | (54,476) | |
Cash flows from financing activities: | |||
Net proceeds from / (repayments of) line of credit | 30,000 | 4,000 | |
Payments on other debt | (1,873) | (1,929) | |
Payments of contingent consideration and hold back payments to acquisitions | (37,676) | ||
Dividends paid to shareholders | (2,847) | (24,572) | |
Payments to non-controlling interest | (6,908) | (8,407) | |
Tax payments related to the issuance of restricted stock units | (945) | (2,938) | |
Payments of debt issuance costs | (2,635) | - | |
Net cash used in financing activities | 14,792 | (71,522) | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 2,283 | 3,889 | |
(Decrease) in cash, cash equivalents and restricted cash | (76,976) | (8,878) | |
Cash, cash equivalents and restricted cash, beginning of period | 173,905 | 167,064 | |
Cash, cash equivalents and restricted cash, end of period | $ 96,929 | $ 158,186 | |
TTEC HOLDINGS, INC. AND SUBSIDIARIES | ||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION | ||||||||||||||
(In thousands, except per share data) | ||||||||||||||
(unaudited) | ||||||||||||||
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Revenue | $ 529,427 | $ 602,956 | $ 1,640,150 | $ 1,836,636 | ||||||||||
Reconciliation of Non-GAAP Income from Operations and EBITDA: | ||||||||||||||
Net (Loss) / Income from Operations | $ 12,889 | $ 25,388 | $ (188,813) | $ 101,097 | ||||||||||
Restructuring charges, net | 1,002 | 1,369 | 6,346 | 4,896 | ||||||||||
Impairment losses | 4,688 | 4,124 | 241,544 | 11,083 | ||||||||||
Cybersecurity incident related impact, net of insurance recovery | - | - | - | (3,210) | ||||||||||
Grant income for pandemic relief | - | - | - | 40 | ||||||||||
Property costs not related to operations | 424 | 744 | 2,329 | 744 | ||||||||||
Change in acquisition related obligation | - | - | - | 483 | ||||||||||
Liability related to notifications triggered by labor scheme (1) | 2,563 | - | (187) | - | ||||||||||
Equity-based compensation expenses | 4,333 | 6,608 | 15,249 | 16,410 | ||||||||||
Amortization of purchased intangibles | 8,169 | 9,073 | 25,053 | 27,083 | ||||||||||
Non-GAAP Income from Operations | $ 34,068 | $ 47,306 | $ 101,521 | $ 158,626 | ||||||||||
Non-GAAP Income from Operations Margin | 6.4 % | 7.8 % | 6.2 % | 8.6 % | ||||||||||
Depreciation and amortization | 15,873 | 16,183 | 48,152 | 48,946 | ||||||||||
Changes in acquisition contingent consideration | (449) | 102 | (1,496) | 6,864 | ||||||||||
Change in escrow balance related to acquisition | - | - | - | 625 | ||||||||||
Loss on dissolution of subsidiary | - | - | - | 301 | ||||||||||
Foreign SS Tax Recovery | - | - | (853) | - | ||||||||||
Foreign VAT receivable write-off | - | - | 770 | - | ||||||||||
Foreign exchange loss / (gain), net | 1,825 | (373) | 2,381 | 839 | ||||||||||
Other Income (expense), net | (1,041) | 687 | 953 | (2,232) | ||||||||||
Adjusted EBITDA | $ 50,276 | $ 63,905 | $ 151,428 | $ 213,969 | ||||||||||
Adjusted EBITDA Margin | 9.5 % | 10.6 % | 9.2 % | 11.7 % | ||||||||||
Reconciliation of Non-GAAP EPS: | ||||||||||||||
Net (Loss) Income | $ (18,968) | $ 1,796 | $ (315,236) | $ 26,470 | ||||||||||
Add: Asset impairment and restructuring charges | 5,690 | 5,493 | 247,890 | 15,979 | ||||||||||
Add: Equity-based compensation expenses | 4,333 | 6,608 | 15,249 | 16,410 | ||||||||||
Add: Amortization of purchased intangibles | 8,169 | 9,073 | 25,053 | 27,083 | ||||||||||
Add: Cybersecurity incident related impact, net of insurance recovery | - | - | - | (3,210) | ||||||||||
Add: Grant income for pandemic relief | - | - | - | 40 | ||||||||||
Add: Change in acquisition related obligation | - | - | - | 483 | ||||||||||
Add: Property costs not related to operations | 424 | 744 | 2,329 | 744 | ||||||||||
Add: Liability related to notifications triggered by labor scheme | 2,563 | - | (187) | - | ||||||||||
Add: Foreign SS Tax Recovery | - | - | (853) | - | ||||||||||
Add: Foreign VAT receivable write-off | - | - | 770 | - | ||||||||||
Add: Changes in acquisition contingent consideration | (449) | 102 | (1,496) | 6,864 | ||||||||||
Add: Changes in escrow balance related to acquisition | - | - | - | 625 | ||||||||||
Add: Loss on dissolution of subsidiary | - | - | - | 301 | ||||||||||
Add: Foreign exchange loss / (gain), net | 1,825 | (373) | 2,381 | 839 | ||||||||||
Less: Changes in valuation allowance, return to provision adjustments and | 1,810 | (590) | 48,752 | (6,974) | ||||||||||
Non-GAAP Net Income | $ 5,397 | $ 22,853 | $ 24,652 | $ 85,654 | ||||||||||
Diluted shares outstanding | 47,860 | 47,488 | 47,618 | 47,417 | ||||||||||
Non-GAAP EPS | ||||||||||||||
Reconciliation of Free Cash Flow: | ||||||||||||||
Cash Flow From Operating Activities: | ||||||||||||||
Net (loss) / income | $ (18,968) | $ 1,321 | $ (315,236) | $ 26,470 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 24,042 | 25,256 | 74,258 | 76,368 | ||||||||||
Other | (96,451) | (58,295) | 183,246 | 10,393 | ||||||||||
Net cash provided by operating activities | (91,377) | (31,718) | (57,732) | 113,231 | ||||||||||
Less - Total Cash Capital Expenditures | 8,783 | 21,768 | 36,465 | 54,722 | ||||||||||
Free Cash Flow | $ (100,160) | $ (53,486) | $ (94,197) | $ 58,509 | ||||||||||
(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 | |||||||||||
Q3 24 | Q3 23 | Q3 24 | Q3 23 | YTD 24 | YTD 23 | YTD 24 | YTD 23 | |||||||
Income / (Loss) from Operations | $ 5,414 | $ 13,463 | $ 7,474 | $ 11,925 | $ (205,585) | $ 81,233 | $ 16,771 | $ 19,864 | ||||||
Restructuring charges, net | 202 | 634 | 801 | 735 | 5,697 | 2,427 | 650 | 2,469 | ||||||
Impairment losses | 4,255 | 4,124 | 433 | - | 238,600 | 8,229 | 2,944 | 2,854 | ||||||
Cybersecurity incident related impact, net of insurance recovery | - | - | - | (3,210) | - | - | ||||||||
Grant income for pandemic relief | - | - | - | 40 | - | - | ||||||||
Property costs not related to operations | 424 | 744 | - | - | 2,329 | 744 | - | - | ||||||
Change in acquisition related obligation | - | - | - | - | - | - | 483 | |||||||
Liability related to notifications triggered by labor scheme | 2,563 | - | - | - | (187) | - | - | - | ||||||
Equity-based compensation expenses | 2,701 | 4,327 | 1,632 | 2,281 | 9,748 | 10,599 | 5,501 | 5,811 | ||||||
Amortization of purchased intangibles | 4,098 | 4,649 | 4,071 | 4,424 | 12,306 | 13,951 | 12,747 | 13,132 | ||||||
Non-GAAP Income from Operations | $ 19,657 | $ 27,941 | $ 14,411 | $ 19,365 | $ 62,908 | $ 114,013 | $ 38,613 | $ 44,613 | ||||||
Depreciation and amortization | 12,958 | 13,807 | 2,915 | 2,377 | 39,849 | 41,695 | 8,303 | 7,252 | ||||||
Changes in acquisition contingent consideration | (449) | 102 | - | (1,496) | 6,864 | - | - | |||||||
Change in escrow balance related to acquisition | - | - | - | 625 | - | - | ||||||||
Loss on dissolution of subsidiary | - | - | - | - | 301 | - | - | |||||||
Foreign VAT receivable write-off | - | - | - | 770 | - | - | ||||||||
Foreign SS Tax Recovery | - | - | - | (853) | - | |||||||||
Foreign exchange loss / (gain), net | 1,725 | (297) | 100 | (76) | 2,518 | 815 | (138) | 24 | ||||||
Other Income (expense), net | (944) | 578 | (97) | 108 | 833 | (2,332) | 121 | 99 | ||||||
Adjusted EBITDA | $ 32,947 | $ 42,131 | $ 17,329 | $ 21,774 | $ 104,529 | $ 161,981 | $ 46,899 | $ 51,988 | ||||||
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SOURCE TTEC Holdings, Inc.
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