Full Year 2022
Revenue was $2.444 Billion, up 7.5 Percent and 9.4 Percent on
a Constant Currency Basis
Operating Income was $168.5 Million
or 6.9 Percent of Revenue
($248.5 Million or 10.2 Percent of
Revenue Non-GAAP)
Net Income was $117.3 Million or 4.8
Percent of Revenue
($174.4 Million or 7.1 Percent of
Revenue Non-GAAP)
Adjusted EBITDA was $326.6 Million or
13.4 Percent of Revenue
Fully Diluted EPS was $2.48
($3.68 Non-GAAP)
Full Year Bookings of $762
Million
Fourth Quarter 2022
Revenue was
$658.3 Million, up 7.5 Percent and
9.6 Percent on a Constant Currency Basis
Operating Income was $48.7 Million or
7.4 Percent of Revenue
($69.9 Million or 10.6 Percent of
Revenue Non-GAAP)
Net Income was $25.6 Million or 3.9
Percent of Revenue
($42.0 Million or 6.4 Percent of
Revenue Non-GAAP)
Adjusted EBITDA was $84.8 Million or
12.9 Percent of Revenue
Fully Diluted EPS was $0.54
($0.89 Non-GAAP)
Fourth Quarter Bookings of $197 Million
Provides Outlook for Full Year 2023
DENVER, Feb. 27,
2023 /PRNewswire/ -- TTEC Holdings, Inc. (NASDAQ:
TTEC), one of the largest, global CX (customer experience)
technology and services innovators for end-to-end digital CX
solutions, announced today financial results for the fourth quarter
and full year ended December 31,
2022.
"We ended 2022 with solid execution and financial results
despite the increased uncertainties surrounding the macroeconomic
environment. Our performance reflects our broad and diverse base of
global clients, our expertise across key strategic verticals, and
our full range of CX technology, AI, and service capabilities,"
commented Ken Tuchman, chairman and
chief executive officer of TTEC. "In this dynamic environment,
we will continue to execute on our strategy to accelerate the
diversification of our geographic and language footprint, and
capitalize on the growing adoption of the modern capabilities
enabled by the CX cloud."
Tuchman continued, "Over the last forty years, we have
thoughtfully managed through uncertain business cycles and always
come out stronger. We have proven time and again that we are
resilient, innovative and have what it takes to turn challenges
into opportunities. Our strategy for 2023 is prudent and designed
to set us up for accelerated growth in 2024. The plan will enable
us to operate efficiently in the short term while investing in
capabilities our clients need today and into the future."
FULL YEAR 2022 FINANCIAL
HIGHLIGHTS
Revenue
- Full year 2022 GAAP revenue increased 7.5 percent to
$2.444 billion compared to
$2.273 billion in the prior
year.
- Foreign exchange had a $42.4
million negative impact on revenue for the full year
2022.
Income from Operations
- Full year 2022 GAAP income from operations was $168.5 million, or 6.9 percent of revenue,
compared to $217.2 million, or 9.6
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
$248.5 million, or 10.2 percent of
revenue, compared to $286.2 million,
or 12.6 percent for the prior year.
- Foreign exchange had a $13.9
million positive impact on Non-GAAP income from operations
for the full year 2022.
Adjusted
EBITDA
- Full year 2022 Non-GAAP Adjusted EBITDA was $326.6 million, or 13.4 percent of revenue,
compared to $354.4 million, or 15.6
percent of revenue in the prior year.
Earnings Per Share
- Full year 2022 GAAP fully diluted earnings per share was
$2.48 compared to $3.34 for the prior year.
- Non-GAAP fully diluted earnings per share was $3.68 compared to $4.62 in the prior year.
Bookings
- During the full year 2022, TTEC signed an estimated
$762 million in annualized contract
value compared to $751 million in the
prior year. Full year bookings mix was diversified across segments,
verticals, and geographies.
FOURTH QUARTER 2022 FINANCIAL
HIGHLIGHTS
Revenue
- Fourth quarter 2022 GAAP revenue increased 7.5 percent to
$658.3 million compared to
$612.3 million in the prior year
period.
- Foreign exchange had a $12.6
million negative impact on revenue in the fourth quarter
2022.
Income from Operations
- Fourth quarter 2022 GAAP income from operations was
$48.7 million, or 7.4 percent of
revenue, compared to $51.9 million,
or 8.5 percent of revenue in the prior year period.
- Non-GAAP income from operations, excluding restructuring and
impairment charges, equity-based compensation expenses,
amortization of purchased intangibles, and other items, was
$69.9 million, or 10.6 percent of
revenue, compared to $68.3 million,
or 11.2 percent for the prior year period.
- Foreign exchange had a $4.5
million positive impact on Non-GAAP income from operations
in the fourth quarter 2022.
Adjusted
EBITDA
- Fourth quarter 2022 Non-GAAP Adjusted EBITDA was $84.8 million, or 12.9 percent of revenue,
compared to $84.1 million, or 13.7
percent of revenue in the prior year period.
Earnings Per Share
- Fourth quarter 2022 GAAP fully diluted earnings per share was
$0.54 compared to $0.69 for the same period last year.
- Non-GAAP fully diluted earnings per share was $0.89 compared to $1.08 in the prior year period.
Bookings
- During the fourth quarter 2022, TTEC signed an estimated
$197 million in annualized contract
value compared to $206 million in the
prior year period. Fourth quarter bookings mix was diversified
across segments, verticals, and geographies.
STRONG CASH FLOW AND BALANCE SHEET FUND INVESTMENTS AND
DIVIDENDS
- Cash flow from operations in the fourth quarter 2022 was
$18.2 million compared to
$76.2 million for the fourth quarter
2021. For the full year 2022, cash flow from operations was
$137.0 million compared to
$251.3 million for the same period
2021.
- Capital expenditures in the fourth quarter 2022 were
$19.4 million compared to
$19.6 million for the fourth quarter
2021. For the full year 2022, capital expenditures were
$84.0 million compared to
$60.4 million for the same
period 2021.
- As of December 31, 2022, TTEC had
cash and cash equivalents of $153.4
million and debt of $963.6 million, resulting in a net debt
position of $810.2 million. This
compares to a net debt position of $638.9
million for the same period 2021. The increase in net debt
is primarily attributable to the acquisition of Faneuil in
April 2022.
- As of December 31, 2022, TTEC's
remaining borrowing capacity under its revolving credit facility
was approximately $335 million
compared to $565 million for the same
period 2021.
- TTEC paid a $0.52 per share, or
$24.6 million, semi-annual dividend
on October 26, 2022. On
February 23, 2023, the Board declared the next semi-annual
dividend of $0.52 per share, payable
on April 20, 2023 to shareholders of
record as of March 31, 2023. This dividend is unchanged over
the October 2022 dividend and 4.0
percent over the April 2022
dividend.
SEGMENT REPORTING & COMMENTARY
TTEC reports financial results for the following two business
segments: TTEC Digital (Digital) and TTEC (Engage). Financial
highlights for the two segments are provided below.
TTEC Digital – Design, build and operate tech-enabled,
insight-driven CX solutions
- Fourth quarter 2022 GAAP revenue for TTEC Digital increased 4.2
percent to $123.4 million from
$118.4 million for the year ago
period. Income from operations was $8.4
million or 6.8 percent of revenue compared to operating
income of $13.0 million or 11.0
percent of revenue for the prior year period.
- Non-GAAP income from operations was $16.5 million, or 13.3 percent of revenue
compared to operating income of $20.2
million or 17.1 percent of revenue in the prior year
period.
TTEC Engage – Digitally-enabled customer care, acquisition,
and fraud mitigation services
- Fourth quarter 2022 GAAP revenue for TTEC Engage increased 8.3
percent to $534.9 million from
$493.9 million for the year ago
period. Income from operations was $40.3
million or 7.5 percent of revenue compared to operating
income of $38.9 million, or 7.9
percent of revenue for the prior year period.
- Non-GAAP income from operations was $53.4 million, or 10.0 percent of revenue,
compared to operating income of $48.1
million, or 9.7 percent of revenue in the prior year
period.
- Foreign exchange had a $11.6
million negative impact on revenue and $4.2 million positive impact on income from
operations.
BUSINESS OUTLOOK
"Our solid fourth-quarter performance capped a year in which we
grew revenue 9.4 percent on a constant currency basis, reflecting
the contribution from strategic acquisitions partially offset by
emerging macroeconomic headwinds in the second half of the year,"
commented Dustin Semach, chief financial officer of TTEC.
Semach continued, "We are confident we will successfully
navigate the dynamic environment ahead of us and position the
company for accelerated growth as we exit the year. We are excited
about our future, supported by our 40-year track record of
delivering innovation and value-driven CX outcomes for our clients,
a strong executive leadership team, and an unmatched CX technology
and services platform."
TTEC Full Year 2023
Outlook
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2023
Guidance
|
|
First Quarter
2023
Mid-Point
|
|
Full Year 2023
Guidance
|
|
Full Year 2023
Mid-Point
|
Revenue
|
|
$591M —
$607M
|
|
$599M
|
|
$2,460M —
$2,540M
|
|
$2,500M
|
Non-GAAP adjusted
EBITDA
|
|
$58M — $66M
|
|
$62M
|
|
$290M —
$310M
|
|
$300M
|
Non-GAAP adjusted
EBITDA margins
|
|
9.9% — 11.0%
|
|
10.4 %
|
|
11.8% —
12.2%
|
|
12.0 %
|
Non-GAAP operating
income
|
|
$42M — $50M
|
|
$46M
|
|
$221M —
$241M
|
|
$231M
|
Non-GAAP operating
income margins
|
7.2% — 8.3%
|
|
7.7 %
|
|
9.0% — 9.5%
|
|
9.3 %
|
Interest expense,
net
|
|
($17M) —
($18M)
|
|
($17M)
|
|
($74M) —
($76M)
|
|
($75M)
|
Effective tax
rate
|
|
22% — 24%
|
|
23 %
|
|
22% — 24%
|
|
23 %
|
Diluted share
count
|
|
47.2M —
47.4M
|
|
47.3M
|
|
47.3M —
47.5M
|
|
47.4M
|
Non-GAAP earnings per a
share
|
|
$0.41 —
$0.54
|
|
$0.48
|
|
$2.38 —
$2.71
|
|
$2.54
|
|
|
|
|
|
|
|
|
|
Engage Full Year
2023 outlook
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2023
Guidance
|
|
First Quarter
2023
Mid-Point
|
|
Full Year 2023
Guidance
|
|
Full Year 2023
Mid-Point
|
Revenue
|
|
$486M —
$496M
|
|
$491M
|
|
$1,970M —
$2,030M
|
|
$2,000M
|
Non-GAAP adjusted
EBITDA
|
|
$49M — $55M
|
|
$52M
|
|
$221M —
$235M
|
|
$228M
|
Non-GAAP adjusted
EBITDA margins
|
|
10.0% —
11.0%
|
|
10.5 %
|
|
11.2% —
11.6%
|
|
11.4 %
|
Non-GAAP operating
income
|
|
$34M — $40M
|
|
$37M
|
|
$164M —
$178M
|
|
$171M
|
Non-GAAP operating
income margins
|
7.1% — 8.2%
|
|
7.6 %
|
|
8.3% — 8.8%
|
|
8.5 %
|
|
|
|
|
|
|
|
|
|
Digital Full Year
2023 outlook
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2023
Guidance
|
|
First Quarter
2023
Mid-Point
|
|
Full Year 2023
Guidance
|
|
Full Year 2023
Mid-Point
|
Revenue
|
|
$105M —
$111M
|
|
$108M
|
|
$490M —
$510M
|
|
$500M
|
Non-GAAP adjusted
EBITDA
|
|
$10M — $12M
|
|
$11M
|
|
$69M — $75M
|
|
$72M
|
Non-GAAP adjusted
EBITDA margins
|
|
9.4% — 10.7%
|
|
10.0 %
|
|
14.1% —
14.7%
|
|
14.4 %
|
Non-GAAP operating
income
|
|
$8M — $10M
|
|
$9M
|
|
$57M — $63M
|
|
$60M
|
Non-GAAP operating
income margins
|
7.5% — 8.9%
|
|
8.2 %
|
|
11.7% —
12.4%
|
|
12.1 %
|
The Company has not quantitatively reconciled its guidance for
Non-GAAP operating income margins, 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 asset impairment,
restructuring and integration charges, cybersecurity
incident-related costs, gains or losses on the sale of business
units or other assets, 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 margins, net
income margins, and diluted earnings per share without unreasonable
effort. Please note that the unavailable reconciling items could
significantly impact the Company's 2023 financial results as
reported under GAAP.
NON-GAAP FINANCIAL MEASURES
This press release contains a discussion of certain Non-GAAP
financial measures that the Company includes to allow investors and
analysts to measure, analyze and compare its financial condition
and results of operations in a meaningful and consistent manner. A
reconciliation of these Non-GAAP financial measures can be found in
the tables accompanying this press release.
- GAAP metrics are presented in accordance with Generally
Accepted Accounting Principles.
- Non-GAAP - As reflected in the attached reconciliation
table, the definition of Non-GAAP may exclude from operating
income, EBITDA, net income and earnings per share restructuring and
impairment charges, equity-based compensation expenses,
amortization of purchased intangibles, among other items.
ABOUT TTEC
TTEC Holdings, Inc. (NASDAQ: TTEC) is one of the largest,
global CX (customer experience) technology and services innovators
for end-to-end, digital CX solutions. The Company delivers
leading CX technology and operational CX orchestration
at scale through its proprietary cloud-based CXaaS (Customer
Experience as a Service) platform. Serving iconic and
disruptive brands, TTEC's outcome-based solutions span the
entire enterprise, touch every virtual interaction channel,
and improve each step of the customer journey. Leveraging next gen
digital and cognitive technology, the Company's Digital business
designs, builds, and operates omnichannel contact center
technology, conversational messaging, CRM, automation (AI / ML and
RPA), and analytics solutions. The Company's Engage business
delivers digital customer engagement, customer acquisition and
growth, content moderation, fraud prevention, and data annotation
solutions. Founded in 1982, the Company's singular
obsession with CX excellence has earned it leading client NPS
scores across the globe. The Company's 69,400 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 release contains "forward-looking statements"
within the meaning of Section 27A of the Securities Act of
1933, Section 21E of the Securities Exchange Act of 1934, and
the Private Securities Litigation Reform Act of 1995, relating to
our operations, expected financial position, results of operation,
and other business matters that are based on our current
expectations, assumptions, and projections with respect to the
future, and are not a guarantee of performance. In this release
when we use words such as "may," "believe," "plan," "will,"
"anticipate," "estimate," "expect," "intend," "project," "would,"
"could," "target," or similar expressions, or when we discuss our
strategy, plans, goals, initiatives, or objectives, we are making
forward-looking statements.
We caution you not to rely unduly on any forward-looking
statements. Actual results may differ materially from those
expressed in the forward-looking statements, and you should review
and consider carefully the risks, uncertainties, and other factors
that affect our business and may cause such differences as outlined
in Item 1A. Risk Factors in our Annual Report on Form 10-K for the
year ended December 31, 2022 and any
subsequent filings with the U.S. Securities and Exchange Commission
(the "SEC") which are available on TTEC's website
www.ttec.com, and on the SEC's public website at
www.sec.gov. Important factors that could cause our
actual results to differ materially from those indicated in the
forward looking statements include, among others: the risks related
to our business operations and strategy, including the risks
related to our strategy execution in a competitive market; our
ability to innovate and introduce technologies that are
sufficiently disruptive to allow us to maintain and grow our market
share, including the effective adoption of artificial intelligence
into our solutions; risks that may arise in connection with events
outside of our control, such as macroeconomic conditions,
geopolitical tensions, and outbreaks of infectious diseases; risks
inherent in a disruption of our information technology systems, our
technology infrastructure's cybersecurity in general, and
cyber-related criminal activity such as ransomware, other malware
and data breach in particular, which can impact our ability to
consistently deliver uninterrupted service to our clients and may
result in government enforcement actions, regulatory
investigations, fines, penalties, and private legal actions; risks
inherent in the delivery of client services by employees working
from home; our ability to attract and retain qualified and skilled
personnel at a price point that we can afford and our clients are
willing to pay; our M&A activity, including our ability to
identify, acquire and properly integrate acquired businesses in
accordance with our strategy; our reliance on a relatively small
number of clients to generate the majority of our revenue and our
reliance on technology partners to generate a large portion of TTEC
Digital's revenue; the risks related to legal and regulatory impact
on our operations, including rapidly changing and at times
inconsistent laws that regulate our and our clients' business, such
as data privacy and data protection laws, regulatory changes
impacting our healthcare businesses, financial and public sector
specific regulations, our ability to comply with these laws timely
and cost effectively; the cost of wage and hour litigation and
other class action litigation in the
United States; the risk related to our international
operations including the stress that geographic expansion may have
on our business and the impacts if we are unable to expand
geographically to meet our clients' demand; and risks inherent in
our equity structure including our controlling shareholder risk,
and Delaware choice of dispute
resolution risks.
Our forward-looking statements speak only as of the date that
this release is issued. We undertake no obligation to update them,
except as may be required by applicable law. Although we believe
that our forward-looking statements are reasonable, they depend on
many factors outside of our control and we can provide no assurance
that they will prove to be correct.
Investor Relations Contact
Paul
Miller
+1.303.397.8641
|
Address
9197 South Peoria
Street
Englewood, CO
80112
|
Communications Contact
Tim Blair
tim.blair@ttec.com
+1.303.397.9267
|
|
TTEC HOLDINGS, INC.
AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$658,278
|
|
$612,315
|
|
$2,443,707
|
|
$2,273,062
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
495,339
|
|
467,340
|
|
1,856,518
|
|
1,704,109
|
|
Selling, general and
administrative
|
|
80,602
|
|
58,511
|
|
287,433
|
|
239,994
|
|
Depreciation and
amortization
|
|
31,730
|
|
26,051
|
|
111,791
|
|
96,706
|
|
Restructuring charges,
net
|
|
1,412
|
|
1,195
|
|
5,673
|
|
3,807
|
|
Impairment
losses
|
|
450
|
|
7,305
|
|
13,749
|
|
11,254
|
Total operating expenses
|
|
609,533
|
|
560,402
|
|
2,275,164
|
|
2,055,870
|
|
|
|
|
|
|
|
|
|
|
Income From
Operations
|
|
48,745
|
|
51,913
|
|
168,543
|
|
217,192
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net
|
|
(15,877)
|
|
(4,738)
|
|
(24,095)
|
|
(9,308)
|
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
|
32,868
|
|
47,175
|
|
144,448
|
|
207,884
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
(7,318)
|
|
(14,424)
|
|
(27,115)
|
|
(49,695)
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
25,550
|
|
32,751
|
|
117,333
|
|
158,189
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to noncontrolling interest
|
(3,197)
|
|
(4,003)
|
|
(14,093)
|
|
(17,219)
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to TTEC Stockholders
|
$
22,353
|
|
$
28,748
|
|
$
103,240
|
|
$
140,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 0.54
|
|
$ 0.70
|
|
$
2.49
|
|
$
3.37
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$ 0.54
|
|
$ 0.69
|
|
$
2.48
|
|
$
3.34
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share
Attributable to TTEC Stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 0.47
|
|
$ 0.61
|
|
$
2.19
|
|
$
3.01
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$ 0.47
|
|
$ 0.61
|
|
$
2.18
|
|
$
2.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income From
Operations Margin
|
|
7.4 %
|
|
8.5 %
|
|
6.9 %
|
|
9.6 %
|
Net Income
Margin
|
|
3.9 %
|
|
5.3 %
|
|
4.8 %
|
|
7.0 %
|
Net Income
Attributable to TTEC Stockholders Margin
|
3.4 %
|
|
4.7 %
|
|
4.2 %
|
|
6.2 %
|
Effective Tax
Rate
|
|
22.3 %
|
|
30.6 %
|
|
18.8 %
|
|
23.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding
|
|
|
|
|
|
|
|
Basic
|
|
47,220
|
|
46,989
|
|
47,121
|
|
46,890
|
Diluted
|
|
47,299
|
|
47,372
|
|
47,335
|
|
47,386
|
TTEC HOLDINGS, INC.
AND SUBSIDIARIES
|
SEGMENT
INFORMATION
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
TTEC Digital
|
|
$123,411
|
|
$118,436
|
|
$
471,523
|
|
$
414,104
|
TTEC Engage
|
|
534,867
|
|
493,879
|
|
1,972,184
|
|
1,858,958
|
Total
|
|
$658,278
|
|
$612,315
|
|
$2,443,707
|
|
$2,273,062
|
|
|
|
|
|
|
|
|
|
Income From
Operations:
|
|
|
|
|
|
|
|
|
TTEC Digital
|
|
$
8,433
|
|
$
13,000
|
|
$ 33,729
|
|
$ 35,437
|
TTEC Engage
|
|
40,312
|
|
38,913
|
|
134,814
|
|
181,755
|
Total
|
|
$
48,745
|
|
$
51,913
|
|
$
168,543
|
|
$
217,192
|
TTEC HOLDINGS, INC.
AND SUBSIDIARIES
|
CONSOLIDATED BALANCE
SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2022
|
|
2021
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and
cash equivalents
|
|
$
153,435
|
|
$
158,205
|
Accounts
receivable, net
|
|
417,637
|
|
357,310
|
Other
current assets
|
|
178,898
|
|
182,472
|
Total current
assets
|
|
749,970
|
|
697,987
|
|
|
|
|
|
Property and equipment,
net
|
|
183,360
|
|
168,404
|
Operating lease
assets
|
|
92,431
|
|
90,180
|
Goodwill
|
|
807,845
|
|
739,481
|
Other intangibles
assets, net
|
|
233,909
|
|
212,349
|
Other assets
|
|
86,447
|
|
88,403
|
|
|
|
|
|
Total
assets
|
|
$ 2,153,962
|
|
$
1,996,804
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
93,937
|
|
$
70,415
|
Accrued
employee compensation and benefits
|
|
145,096
|
|
156,324
|
Deferred
revenue
|
|
87,846
|
|
95,608
|
Current
operating lease liabilities
|
|
35,271
|
|
44,460
|
Other
current liabilities
|
|
49,214
|
|
77,589
|
Total current
liabilities
|
|
411,364
|
|
444,396
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
Line of
credit
|
|
960,000
|
|
791,000
|
Non-current operating lease liabilities
|
|
69,575
|
|
64,419
|
Other
long-term liabilities
|
|
79,273
|
|
102,648
|
Total long-term
liabilities
|
|
1,108,848
|
|
958,067
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
55,645
|
|
56,316
|
|
|
|
|
|
Equity:
|
|
|
|
|
Common
stock
|
|
472
|
|
470
|
Additional
Paid in Capital
|
|
367,673
|
|
361,135
|
Treasury
stock
|
|
(593,164)
|
|
(597,031)
|
Accumulated other comprehensive income (loss)
|
|
(126,301)
|
|
(98,426)
|
Retained
earnings
|
|
911,233
|
|
856,065
|
Noncontrolling interest
|
|
18,192
|
|
15,812
|
Total
equity
|
|
578,105
|
|
538,025
|
|
|
|
|
|
Total liabilities
and equity
|
|
$ 2,153,962
|
|
$
1,996,804
|
TTEC HOLDINGS, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
117,333
|
|
$
158,189
|
Adjustment to reconcile net
income to net cash provided by operating activities :
|
|
|
|
Depreciation and amortization
|
111,791
|
|
96,706
|
Amortization of contract acquisition costs
|
2,065
|
|
983
|
Amortization of debt issuance costs
|
1,018
|
|
1,016
|
Imputed interest expense and fair value adjustments to contingent
consideration
|
1,746
|
|
1,168
|
Provision for credit losses
|
9,391
|
|
(350)
|
Loss on disposal of assets
|
1,916
|
|
1,127
|
Impairment losses
|
13,749
|
|
11,254
|
Deferred income taxes
|
(11,001)
|
|
831
|
Excess tax benefit from equity-based awards
|
(1,122)
|
|
(5,301)
|
Equity-based compensation expense
|
17,571
|
|
16,425
|
Loss / (gain) on foreign currency derivatives
|
(7)
|
|
(213)
|
Changes in assets and liabilities, net of acquisitions:
|
|
|
|
Accounts receivable
|
(74,564)
|
|
40,156
|
Prepaids and other assets
|
43,699
|
|
18,407
|
Accounts payable and accrued expenses
|
(12,695)
|
|
(17,209)
|
Deferred revenue and other liabilities
|
(83,842)
|
|
(71,893)
|
Net cash provided by operating activities
|
137,048
|
|
251,296
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Proceeds from sale of
property, plant and equipment
|
229
|
|
93
|
Purchases of property, plant
and equipment
|
(84,012)
|
|
(60,358)
|
Acquisitions
|
(142,420)
|
|
(481,718)
|
Net cash used in investing activities
|
(226,203)
|
|
(541,983)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Net proceeds / (borrowings)
from line of credit
|
169,000
|
|
406,000
|
Payments on other
debt
|
(3,245)
|
|
(6,626)
|
Payments of contingent
consideration and hold back payments to acquisitions
|
(9,600)
|
|
(11,517)
|
Dividends paid to
shareholders
|
(48,072)
|
|
(42,217)
|
Payments to noncontrolling
interest
|
(11,883)
|
|
(10,984)
|
Tax payments related to the
issuance of restricted stock units
|
(7,164)
|
|
(11,397)
|
Payments of debt issuance
costs
|
-
|
|
(3,614)
|
Net cash provided by financing activities
|
89,036
|
|
319,645
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents and restricted cash
|
(13,499)
|
|
(7,291)
|
|
|
|
|
Increase in cash, cash
equivalents and restricted cash
|
(13,618)
|
|
21,667
|
Cash, cash equivalents
and restricted cash, beginning of period
|
180,682
|
|
159,015
|
Cash, cash equivalents
and restricted cash, end of period
|
$
167,064
|
|
$
180,682
|
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,
|
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$658,278
|
|
$612,315
|
|
|
|
|
$2,443,707
|
|
$2,273,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Income from Operations and EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Operations
|
|
$
48,745
|
|
$
51,913
|
|
|
|
|
$
168,543
|
|
$
217,192
|
|
|
|
Restructuring charges,
net
|
|
1,412
|
|
1,195
|
|
|
|
|
5,673
|
|
3,807
|
|
|
|
Impairment
losses
|
|
450
|
|
7,305
|
|
|
|
|
13,749
|
|
11,254
|
|
|
|
Grant income for
pandemic relief
|
|
-
|
|
33
|
|
|
|
|
-
|
|
(8,142)
|
|
|
|
Cybersecurity incident
related impact, net of insurance recovery
|
|
(446)
|
|
(5,796)
|
|
|
|
|
(3,610)
|
|
13,659
|
|
|
|
Software accelerated
amortization
|
|
6,382
|
|
-
|
|
|
|
|
8,509
|
|
-
|
|
|
|
Write-off of
acquisition related receivable
|
|
-
|
|
-
|
|
|
|
|
900
|
|
-
|
|
|
|
Equity-based
compensation expenses
|
|
4,331
|
|
4,456
|
|
|
|
|
17,571
|
|
16,425
|
|
|
|
Amortization of
purchased intangibles
|
|
9,038
|
|
9,238
|
|
|
|
|
37,169
|
|
31,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Income from Operations
|
|
$
69,912
|
|
$
68,344
|
|
|
|
|
$
248,504
|
|
$
286,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Income from Operations Margin
|
|
10.6 %
|
|
11.2 %
|
|
|
|
|
10.2 %
|
|
12.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
16,310
|
|
16,813
|
|
|
|
|
66,113
|
|
64,716
|
|
|
|
Changes in acquisition
contingent consideration
|
|
(272)
|
|
122
|
|
|
|
|
1,798
|
|
1,168
|
|
|
|
Other Income (expense),
net
|
|
(1,156)
|
|
(1,222)
|
|
|
|
|
10,161
|
|
2,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
84,794
|
|
$
84,057
|
|
|
|
|
$
326,576
|
|
$
354,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin
|
|
12.9 %
|
|
13.7 %
|
|
|
|
|
13.4 %
|
|
15.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
25,550
|
|
$
32,751
|
|
|
|
|
$
117,333
|
|
$
158,189
|
|
|
|
Add: Asset
impairment and restructuring charges
|
|
1,862
|
|
8,500
|
|
|
|
|
19,422
|
|
15,061
|
|
|
|
Add: Equity-based
compensation expenses
|
|
4,331
|
|
4,456
|
|
|
|
|
17,571
|
|
16,425
|
|
|
|
Add: Amortization
of purchased intangibles
|
|
9,038
|
|
9,238
|
|
|
|
|
37,169
|
|
31,990
|
|
|
|
Add:
Cybersecurity incident related impact, net of insurance
recovery
|
|
(446)
|
|
(5,796)
|
|
|
|
|
(3,610)
|
|
13,659
|
|
|
|
Add: Software
accelerated amortization
|
|
6,382
|
|
-
|
|
|
|
|
8,509
|
|
-
|
|
|
|
Add: Changes in
acquisition contingent consideration
|
|
(272)
|
|
122
|
|
|
|
|
1,798
|
|
1,168
|
|
|
|
Add: Write-off of
acquisition related receivable
|
|
-
|
|
-
|
|
|
|
|
900
|
|
-
|
|
|
|
Less: Grant
income for pandemic relief
|
|
-
|
|
33
|
|
|
|
|
-
|
|
(8,142)
|
|
|
|
Less: Changes in
valuation allowance, return to provision adjustments and other, and
tax effects of items separately disclosed above
|
|
(4,444)
|
|
1,922
|
|
|
|
|
(24,664)
|
|
(9,446)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income
|
|
$
42,001
|
|
$
51,226
|
|
|
|
|
$
174,428
|
|
$
218,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding
|
|
47,299
|
|
47,372
|
|
|
|
|
47,335
|
|
47,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP EPS
|
|
$0.89
|
|
$1.08
|
|
|
|
|
$3.68
|
|
$4.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Free Cash Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow From
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
25,550
|
|
$
32,751
|
|
|
|
|
$
117,333
|
|
$
158,189
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
31,730
|
|
26,051
|
|
|
|
|
111,791
|
|
96,706
|
|
|
|
Other
|
|
(39,045)
|
|
17,432
|
|
|
|
|
(92,076)
|
|
(3,599)
|
|
|
|
Net cash
provided by operating activities
|
|
18,235
|
|
76,234
|
|
|
|
|
137,048
|
|
251,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less - Total Cash
Capital Expenditures
|
|
19,448
|
|
19,580
|
|
|
|
|
84,012
|
|
60,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free
Cash Flow
|
|
$
(1,213)
|
|
$
56,654
|
|
|
|
|
$ 53,036
|
|
$
190,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Income from Operations and Adjusted EBITDA by Segment
:
|
|
|
|
|
|
|
|
|
|
|
|
|
TTEC
Engage
|
|
TTEC
Digital
|
|
TTEC
Engage
|
|
TTEC
Digital
|
|
|
Q4 22
|
|
Q4 21
|
|
Q4 22
|
Q4 21
|
|
YTD
22
|
|
YTD
21
|
|
YTD
22
|
YTD
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Operations
|
|
$
40,313
|
|
$
38,913
|
|
$
8,432
|
$13,000
|
|
$
134,815
|
|
$
181,755
|
|
$33,728
|
$35,438
|
Restructuring charges,
net
|
|
1,130
|
|
1,195
|
|
282
|
-
|
|
5,251
|
|
2,937
|
|
422
|
869
|
Impairment
losses
|
|
24
|
|
7,352
|
|
426
|
(47)
|
|
13,112
|
|
11,702
|
|
637
|
(448)
|
Grant income for
pandemic relief
|
|
-
|
|
33
|
|
-
|
-
|
|
-
|
|
(8,036)
|
|
-
|
(106)
|
Cybersecurity incident
related impact, net of insurance recovery
|
|
(446)
|
|
(5,792)
|
|
-
|
(4)
|
|
(3,610)
|
|
13,429
|
|
-
|
230
|
Software accelerated
amortization
|
|
5,106
|
|
-
|
|
1,276
|
-
|
|
6,807
|
|
-
|
|
1,702
|
-
|
Write-off of
acquisition related receivable
|
|
-
|
|
-
|
|
-
|
-
|
|
-
|
|
-
|
|
900
|
-
|
Equity-based
compensation expenses
|
|
2,659
|
|
3,099
|
|
1,672
|
1,357
|
|
11,406
|
|
11,604
|
|
6,165
|
4,821
|
Amortization of
purchased intangibles
|
|
4,658
|
|
3,303
|
|
4,380
|
5,935
|
|
17,272
|
|
13,224
|
|
19,897
|
18,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Income from Operations
|
|
$
53,444
|
|
$
48,103
|
|
$16,468
|
$20,241
|
|
$
185,053
|
|
$
226,615
|
|
$63,451
|
$59,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
13,340
|
|
13,593
|
|
2,970
|
3,220
|
|
54,233
|
|
53,016
|
|
11,880
|
11,700
|
Changes in acquisition
contingent consideration
|
|
(272)
|
|
122
|
|
-
|
-
|
|
1,798
|
|
1,168
|
|
-
|
-
|
Other Income (expense),
net
|
|
(1,063)
|
|
(1,318)
|
|
(93)
|
96
|
|
9,352
|
|
2,164
|
|
809
|
151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
65,449
|
|
$
60,500
|
|
$19,345
|
$23,557
|
|
$
250,436
|
|
$
282,963
|
|
$76,140
|
$71,421
|
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SOURCE TTEC Holdings, Inc.