TTEC
$51.03
Teletech Hlds
($1.02)
(1.96%)
Earnings Details
3rd Quarter September 2022
Wednesday, November 9, 2022 4:05:00 PM
Tweet Share Watch
Summary

TTEC Guides Below Estimates

Teletech Hlds (TTEC) reported 3rd Quarter September 2022 earnings of $0.65 per share on revenue of $592.5 million. The consensus earnings estimate was $0.55 per share on revenue of $580.2 million. Revenue grew 4.5% on a year-over-year basis.

The company said it expects fourth quarter non-GAAP earnings of $0.66 to $0.82 per share on revenue of $620.0 million to $638.0 million. The current consensus earnings estimate is $0.86 per share on revenue of $641.67 million for the quarter ending December 31, 2022.

TeleTech Holdings Inc is a customer engagement management service provider. It caters to the automotive, communications, financial services, government, healthcare, logistics, media and entertainment, retail, and other industries.

Results
Reported Earnings
$0.65
Earnings Whisper
-
Consensus Estimate
$0.55
Reported Revenue
$592.5 Mil
Revenue Estimate
$580.2 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

TTEC Announces Third Quarter 2022 Financial Results

Third Quarter 2022

Revenue was $592.5 Million
Operating Income was $35.6 Million or 6.0 Percent of Revenue
($50.2 Million or 8.5 Percent of Revenue Non-GAAP)
Net Income was $25.0 Million or 4.2 Percent of Revenue
($35.0 Million or 5.9 Percent of Revenue Non-GAAP)
Adjusted EBITDA was $72.2 Million or 12.2 Percent of Revenue
Fully Diluted EPS was $0.53 ($0.74 Non-GAAP)

Signs Bookings of $200 Million
Reiterates Outlook for Full Year 2022

DENVER, Nov. 9, 2022 /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 third quarter, ended September 30, 2022.

"I'm pleased with our solid execution and results for the third quarter. We continued to accelerate our diversification strategy by expanding into new nearshore and offshore delivery locations, growing with new and embedded base clients across strategic verticals, innovating in our comprehensive portfolio of digital CX solutions, and deepening collaboration with our best-in-class CX technology partners," commented Ken Tuchman, chairman and chief executive officer of TTEC. 

Tuchman continued, "We also continue to strengthen our executive leadership team. We welcome digital industry leader, Dave Seybold, as CEO of TTEC Digital. In addition, Shelly Swanback, CEO of TTEC Engage, will assume expanded responsibilities as President of TTEC. With these two proven executives at my side, among many others, I am energized about the caliber of our leadership, our differentiated approach to CX, and our vision for the future."

THIRD QUARTER 2022 FINANCIAL HIGHLIGHTS                  

Revenue        

  • Third quarter 2022 GAAP revenue increased 4.5 percent to $592.5 million compared to $566.7 million in the prior year period. 
  • Foreign exchange had a $14.1 million negative impact on revenue in the third quarter 2022.

Income from Operations

  • Third quarter 2022 GAAP income from operations was $35.6 million, or 6.0 percent of revenue, compared to $26.0 million, or 4.6 percent of revenue in the prior year period.
  • Non-GAAP income from operations, excluding restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, and other items, was $50.2 million or 8.5 percent of revenue versus $59.4 million or 10.5 percent for the prior year period.
  • Foreign exchange had a $3.9 million positive impact on Non-GAAP income from operations in the third quarter 2022.

Adjusted EBITDA       

  • Third quarter 2022 Adjusted EBITDA was $72.2 million, or 12.2 percent of revenue, compared to $78.7 million, or 13.9 percent of revenue in the prior year period.

Earnings Per Share

  • Third quarter 2022 GAAP fully diluted earnings per share was $0.53 compared to $0.38 for the same period last year.
  • Non-GAAP fully diluted earnings per share was $0.74 compared to $1.01 in the prior year period.

Bookings

  • During the third quarter 2022, TTEC signed an estimated $200 million in annualized contract value compared to $171 million in the prior year period. Third 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 third quarter 2022 was $27.5 million compared to $42.2 million for the third quarter 2021.
  • Capital expenditures in the third quarter 2022 were $28.8 million compared to $17.2 million for the third quarter 2021.
  • As of September 30, 2022, TTEC had cash and cash equivalents of $172.3 million and debt of $959.2 million, resulting in a net debt position of $787 million. This compares to a net debt position of $662.9 million for the same period 2021. The increase in net debt is primarily attributable to the Faneuil public sector asset acquisition in April 2022 and capital distributions made in the second and fourth quarter of 2022.
  • As of September 30, 2022, TTEC's remaining borrowing capacity under its revolving credit facility was approximately $370 million compared to $390 million for the same period 2021.
  • TTEC paid a $0.52 per share, or $24.6 million, semi-annual dividend on October 26, 2022, to shareholders of record on October 11, 2022. This dividend represents a 10.6 percent increase over the October 2021 dividend and 4.0 percent over the April 2022 dividend.

SEGMENT REPORTING & COMMENTARY

TTEC reports financial results for two business segments: TTEC Digital (Digital) and TTEC Engage (Engage). Financial highlights for the two segments are provided below.

TTEC Digital – Design, build and operate tech-enabled, insight-driven CX solutions

  • Third quarter 2022 GAAP revenue for TTEC Digital decreased 5.0 percent to $117.9 million from $124.1 million for the year ago period. Income from operations was $8.1 million or 6.8 percent of revenue compared to operating income of $8.7 million or 7.0 percent of revenue for the prior year period. 
  • Non-GAAP income from operations was $15.9 million, or 13.5 percent of revenue compared to non-GAAP operating income of $15.6 million or 12.5 percent of revenue in the prior year period.

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

  • Third quarter 2022 GAAP revenue for TTEC Engage increased 7.2 percent to $474.5 million from $442.6 million for the year ago period. Income from operations was $27.5 million or 5.8 percent of revenue compared to operating income of $17.4 million or 3.9 percent of revenue for the prior year period.
  • Non-GAAP income from operations was $34.3 million, or 7.2 percent of revenue compared to non-GAAP operating income of $43.8 million or 9.9 percent of revenue in the prior year period.
  • Foreign exchange had a $13.2 million negative impact on revenue and $3.5 million positive impact on non-GAAP income from operations.

BUSINESS OUTLOOK

"We are pleased with our execution and financial performance in the third quarter as we continue to navigate the dynamic macroeconomic environment alongside our clients," commented Dustin Semach, chief financial officer of TTEC.

Semach continued, "Our outlook remains unchanged from last quarter and continues to account for the uncertainties surrounding the global economy. Ahead of 2023, we continue to optimize our cost structure while enhancing our offerings and delivery footprint to meet our client's quickly evolving needs, positioning us well to capitalize on the current market opportunities. We remain committed to maximizing shareholder value through continuous technology innovation, operational excellence, and long-term profitable growth."

TTEC Full Year 2022 Outlook











Fourth Quarter 2022
Guidance


Fourth Quarter 2022
Mid-Point


Full Year 2022
Guidance


Full Year 2022
Mid-Point

Revenue


$620M$638M


$629M


$2,405M$2,423M


$2,414M

Non-GAAP adjusted EBITDA


$73M$83M


$78M


$315M$325M


$320M

Non-GAAP adjusted EBITDA margins


11.7% — 13.0%


12.4 %


13.1% — 13.4%


13.2 %

Non-GAAP operating income


$60M$70M


$65M


$239M$249M


$244M

Non-GAAP operating income margins


9.8% — 11.1%


10.4 %


9.9% — 10.3%


10.1 %

Interest expense, net


($13M) — ($14M)


($14M)


($32M) — ($33M)


($33M)

Effective tax rate


23% — 25%


24 %


22% — 24%


23 %

Diluted share count


47.3M — 47.5M


47.4M


47.3M — 47.5M


47.4M

Non-GAAP earnings per a share


$0.66$0.82


$0.74


$3.45$3.61


$3.53










Engage Full Year 2022 outlook











Fourth Quarter 2022
Guidance


Fourth Quarter 2022
Mid-Point


Full Year 2022
Guidance


Full Year 2022
Mid-Point

Revenue


$506M$516M


$511M


$1,943M$1,953M


$1,948M

Non-GAAP adjusted EBITDA


$57M$63M


$60M


$242M$248M


$245M

Non-GAAP adjusted EBITDA margins


11.2% — 12.1%


11.7 %


12.4% — 12.7%


12.6 %

Non-GAAP operating income


$47M$53M


$50M


$179M$185M


$182M

Non-GAAP operating income margins


9.3% — 10.3%


9.8 %


9.2% — 9.5%


9.3 %










Digital Full Year 2022 outlook











Fourth Quarter 2022
Guidance


Fourth Quarter 2022
Mid-Point


Full Year 2022
Guidance


Full Year 2022
Mid-Point

Revenue


$114M$122M


$118M


$462M$470M


$466M

Non-GAAP adjusted EBITDA


$16M$20M


$18M


$73M$77M


$75M

Non-GAAP adjusted EBITDA margins


14.2% — 16.5%


15.4 %


15.8% — 16.4%


16.1 %

Non-GAAP operating income


$14M$18M


$16M


$61M$65M


$63M

Non-GAAP operating income margins


11.9% — 14.4%


13.2 %


13.1% — 13.7%


13.4 %

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 2022 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 62,700 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, 2021 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; risks inherent in the reliability of our information technology systems; risks related to our information technology infrastructure's cybersecurity in general, and criminal activity such as ransomware, other malware and data exfiltration or destruction in particular, which can impact our ability to consistently deliver uninterrupted service to our clients; our dependence on third parties for our cloud solutions; risks inherent in our transition to a work from home environment; 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; the risk related to our international operations; the risks related to legal and regulatory impact on our operations, including rapidly changing 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; and the cost of wage and hour litigation in the United States; the impact of the COVID-19 pandemic and post-pandemic economic and regulatory realities on our business and our clients' business; 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

paul.miller@ttec.com

+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)

(unaudited)
























Three months ended


Nine months ended




 September 30,


 September 30,




2022


2021


2022


2021











Revenue


$ 592,453


$ 566,734


$ 1,785,429


$ 1,660,747











Operating Expenses:










Cost of services


450,454


447,786


1,361,179


1,236,769


Selling, general and administrative


75,226


67,426


206,831


181,483


Depreciation and amortization


27,117


25,280


80,061


70,655


Restructuring charges, net


1,113


485


4,261


2,612


Impairment losses


2,939


(268)


13,299


3,949

         Total operating expenses


556,849


540,709


1,665,631


1,495,468











Income From Operations


35,604


26,025


119,798


165,279












Other income (expense), net


(6,100)


(45)


(8,218)


(4,570)











Income Before Income Taxes


29,504


25,980


111,580


160,709












Provision for income taxes


(4,489)


(7,939)


(19,797)


(35,271)











Net Income


25,015


18,041


91,783


125,438












Net income attributable to noncontrolling interest

(2,766)


(3,606)


(10,896)


(13,216)











Net Income Attributable to TTEC Stockholders

$   22,249


$   14,435


$     80,887


$   112,222





















Net Income Per Share




















Basic


$       0.53


$       0.38


$         1.95


$         2.68












Diluted


$       0.53


$       0.38


$         1.94


$         2.65











Net Income Per Share Attributable to TTEC Stockholders



















Basic


$       0.47


$       0.31


$         1.72


$         2.39












Diluted


$       0.47


$       0.30


$         1.71


$         2.37





















Income From Operations Margin


6.0 %


4.6 %


6.7 %


10.0 %

Net Income Margin


4.2 %


3.2 %


5.1 %


7.6 %

Net Income Attributable to TTEC Stockholders Margin

3.8 %


2.5 %


4.5 %


6.8 %

Effective Tax Rate


15.2 %


30.6 %


17.7 %


21.9 %





















Weighted Average Shares Outstanding








  Basic


47,207


46,984


47,087


46,857

  Diluted


47,314


47,348


47,354


47,372

 










TTEC HOLDINGS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(In thousands)

(unaudited)





















Three months ended


Nine months ended



 September 30,


 September 30,



2022


2021


2022


2021










Revenue:









TTEC Digital


$     117,938


$     124,086


$    348,112


$     295,668

TTEC Engage


474,515


442,648


1,437,317


1,365,079

Total


$     592,453


$     566,734


$ 1,785,429


$  1,660,747










Income From Operations:









TTEC Digital


$         8,070


$         8,670


$      25,296


$       22,437

TTEC Engage


27,534


17,355


94,502


142,842

Total


$       35,604


$       26,025


$    119,798


$     165,279

 






TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)








 September 30,


 December 31, 



2022


2021






ASSETS





Current assets:





   Cash and cash equivalents


$         172,274


$       158,205

   Accounts receivable, net


384,793


357,310

   Other current assets


184,018


182,472

      Total current assets


741,085


697,987






Property and equipment, net


181,343


168,404

Operating lease assets


93,658


90,180

Goodwill


805,592


739,481

Other intangibles assets, net


242,887


212,349

Other assets


90,472


88,403






Total assets


$      2,155,037


$    1,996,804






LIABILITIES AND EQUITY





Current liabilities:





   Accounts payable


$          98,496


$         70,415

   Accrued employee compensation and benefits


141,220


156,324

   Deferred revenue


90,916


95,608

   Current operating lease liabilities


38,918


44,460

   Other current liabilities


92,652


77,589

      Total current liabilities


462,202


444,396






Long-term liabilities:





   Line of credit


955,000


791,000

   Non-current operating lease liabilities


69,269


64,419

   Other long-term liabilities


88,547


102,648

      Total long-term liabilities


1,112,816


958,067






Redeemable noncontrolling interest


55,696


56,316






Equity:





   Common stock


472


470

   Additional Paid in Capital


363,699


361,135

   Treasury stock


(593,337)


(597,031)

   Accumulated other comprehensive income (loss)


(151,904)


(98,426)

   Retained earnings


888,880


856,065

   Noncontrolling interest


16,513


15,812

      Total equity


524,323


538,025






Total liabilities and equity


$      2,155,037


$    1,996,804

 





TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)






 Nine Months Ended 


 Nine Months Ended 


  September 30


  September 30


2022


2021





Cash flows from operating activities:




     Net income

$                    91,783


$                   125,438

     Adjustment to reconcile net income to net cash provided by operating activities :




          Depreciation and amortization

80,061


70,655

          Amortization of contract acquisition costs

1,345


575

          Amortization of debt issuance costs

735


719

          Imputed interest expense and fair value adjustments to contingent consideration

2,070


1,046

          Provision for credit losses

1,561


(34)

          Loss on disposal of assets

1,587


524

          Impairment losses

13,299


3,949

          Deferred income taxes

(8,216)


514

          Excess tax benefit from equity-based awards

(1,256)


(5,284)

          Equity-based compensation expense

13,240


11,969

          Loss / (gain) on foreign currency derivatives

269


134

          Changes in assets and liabilities, net of acquisitions:




                Accounts receivable 

(37,987)


48,816

                Prepaids and other assets 

38,594


(42,455)

                Accounts payable and accrued expenses 

1,483


19,406

                Deferred revenue and other liabilities 

(79,755)


(60,910)

                    Net cash provided by operating activities

118,813


175,062





Cash flows from investing activities:




     Proceeds from sale of property, plant and equipment

189


42

     Purchases of property, plant and equipment

(64,564)


(40,778)

     Acquisitions

(142,420)


(481,718)

          Net cash used in investing activities

(206,795)


(522,454)





Cash flows from financing activities:




     Net proceeds / (borrowings) from line of credit

164,000


420,000

     Payments on other debt

(2,568)


(5,288)

     Payments of contingent consideration and hold back payments to acquisitions

(9,600)


(11,517)

     Dividends paid to shareholders

(23,518)


(20,132)

     Payments to noncontrolling interest

(9,562)


(8,059)

     Tax payments related to the issuance of restricted stock units

(6,980)


(11,369)

     Payments of debt issuance costs

-


(1,102)

          Net cash used in financing activities

111,772


362,533





Effect of exchange rate changes on cash and cash equivalents and restricted cash

(22,226)


(6,272)





Increase in cash, cash equivalents and restricted cash

1,564


8,869

Cash, cash equivalents and restricted cash, beginning of period

180,682


159,015

Cash, cash equivalents and restricted cash, end of period

$                  182,246


$                   167,884

 
















TTEC HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

(In thousands, except per share data)


















Three months ended





Nine months ended






 September 30,





 September 30,






2022


2021





2022


2021



















Revenue


$  592,453


$  566,734





$ 1,785,429


$ 1,660,747



















Reconciliation of Non-GAAP Income from Operations and EBITDA:





























Income from Operations


$   35,604


$   26,025





$    119,798


$    165,279




Restructuring charges, net


1,113


485





4,261


2,612




Impairment losses


2,939


(268)





13,299


3,949




Grant income for pandemic relief


-


(131)





-


(8,175)




Cybersecurity incident related impact, net of insurance recovery


(6,833)


19,455





(3,164)


19,455




Software accelerated amortization


2,127


-





2,127


-




Write-off of acquisition related receivable


900


-





900


-




Equity-based compensation expenses


5,357


4,570





13,239


11,969




Amortization of purchased intangibles 


9,041


9,269





28,131


22,752



















         Non-GAAP Income from Operations


$   50,248


$   59,405





$    178,591


$    217,841



















         Non-GAAP Income from Operations Margin


8.5 %


10.5 %





10.0 %


13.1 %



















Depreciation and amortization


15,949


16,011





49,803


47,903




Changes in acquisition contingent consideration


2,070


-





2,070


1,046




Other Income (expense), net


3,946


3,288





11,317


3,537



















         Adjusted EBITDA


$   72,213


$   78,704





$    241,781


$    270,327



















         Adjusted EBITDA Margin


12.2 %


13.9 %





13.5 %


16.3 %



















Reconciliation of Non-GAAP EPS:






























Net Income


$   25,015


$   18,041





$      91,783


$    125,438




Add:  Asset  impairment and restructuring charges


4,052


217





17,560


6,561




Add:  Equity-based compensation expenses


5,357


4,570





13,239


11,969




Add:  Amortization of purchased intangibles


9,041


9,269





28,131


22,752




Add:  Cybersecurity incident related impact, net of insurance recovery


(6,833)


19,455





(3,164)


19,455




Add:  Software accelerated amortization


2,127


-





2,127


-




Add:  Changes in acquisition contingent consideration


2,070


-





2,070


1,046




Add:  Write-off of acquisition related receivable


900


-





900


-




Less:  Grant income for pandemic relief


-


(131)





-


(8,175)




Less:  Changes in valuation allowance, return to provision adjustments and other, and tax effects of items separately disclosed above


(6,695)


(3,691)





(20,220)


(11,368)



















         Non-GAAP Net Income


$   35,034


$   47,730





$    132,426


$    167,678



















             Diluted shares outstanding


47,314


47,348





47,354


47,372



















         Non-GAAP EPS


$0.74


$1.01





$2.80


$3.54



















Reconciliation of Free Cash Flow:






























Cash Flow From Operating Activities:















   Net income


$   25,015


$   18,041





$      91,783


$    125,438




   Adjustments to reconcile net income to net cash provided by operating activities:














          Depreciation and amortization


27,117


25,280





80,061


70,655




          Other


(24,591)


(1,098)





(53,031)


(21,031)




   Net cash provided by operating activities


27,541


42,223





118,813


175,062



















Less - Total Cash Capital Expenditures


28,774


17,185





64,564


40,778



















        Free Cash Flow


$    (1,233)


$   25,038





$      54,249


$    134,284


































Reconciliation of Non-GAAP Income from Operations and Adjusted EBITDA by Segment :













TTEC Engage


TTEC Digital


TTEC Engage


TTEC Digital



Q3 22


Q3 21


Q3 22

Q3 21


YTD 22


YTD 21


YTD 22

YTD 21
















Income from Operations


$   27,534


$   17,355


$     8,070

$     8,670


$      94,502


$    142,842


$   25,296

$   22,438

Restructuring charges, net


1,086


483


27

2


4,121


1,742


140

869

Impairment losses


2,728


133


211

(401)


13,088


4,350


211

(401)

Grant income for pandemic relief


-


(131)


-

-


-


(8,069)


-

(106)

Cybersecurity incident related impact, net of insurance recovery


(6,833)


19,221


-

234


(3,164)


19,221


-

234

Software accelerated amortization


1,702


-


425

-


1,702


-


425

-

Write-off of acquisition related receivable


-


-


900

-


-


-


900

-

Equity-based compensation expenses


3,507


3,472


1,850

1,098


8,746


8,505


4,493

3,464

Amortization of purchased intangibles 


4,615


3,307


4,426

5,962


12,614


9,921


15,517

12,831
















         Non-GAAP Income from Operations


$   34,339


$   43,840


$   15,909

$   15,565


$    131,609


$    178,512


$   46,982

$   39,329
















Depreciation and amortization


13,194


13,038


2,755

2,973


40,893


39,423


8,910

8,480

Changes in acquisition contingent consideration


2,070


-


-

-


2,070


1,046


-

-

Other Income (expense), net


3,321


3,204


625

84


10,415


3,482


902

55
















         Adjusted EBITDA


$   52,924


$   60,082


$   19,289

$   18,622


$    184,987


$    222,463


$   56,794

$   47,864































 

TTEC Logo (PRNewsfoto/TTEC Holdings, Inc.)

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/ttec-announces-third-quarter-2022-financial-results-301673533.html

SOURCE TTEC Holdings, Inc.