TTEC
$105.70
Teletech Hlds
$3.70
3.63%
Earnings Details
2nd Quarter June 2021
Tuesday, August 03, 2021 4:05:00 PM
Tweet Share Watch
Summary

TTEC Raises Guidance

Teletech Hlds (TTEC) reported 2nd Quarter June 2021 earnings of $1.00 per share on revenue of $554.8 million. The consensus earnings estimate was $0.86 per share on revenue of $534.0 million. Revenue grew 22.4% on a year-over-year basis.

The company said it expects 2021 non-GAAP earnings of $4.35 to $4.51 per share on revenue of $2.248 billion to $2.266 billion. The company's previous guidance was earnings of $4.14 to $4.32 per share on revenue of $2.191 billion to $2.221 billion and the current consensus earnings estimate is $4.25 per share on revenue of $2.21 billion for the year ending December 31, 2021.

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
$1.00
Earnings Whisper
-
Consensus Estimate
$0.86
Reported Revenue
$554.8 Mil
Revenue Estimate
$534.0 Mil
Growth
Earnings Growth
Revenue Growth
Guidance
Power Rating
Grade
Earnings Release

TTEC Announces Record Second Quarter 2021 Financial Results

DENVER, Aug. 3, 2021 /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 second quarter ended June 30, 2021.

"Our record revenue and profitability has us well positioned to achieve significant financial milestones in 2021 and beyond," commented Ken Tuchman, chairman, and chief executive officer. "Our continued velocity in growing our existing client volume and adding new clients has set us up for long-term growth as they leverage the full breadth of our CX offerings."  

Tuchman continued, "As the world becomes increasingly reliant on digital technology to work, study, play, communicate and collaborate, companies are seeking trusted partners like TTEC to help them infuse the best of these capabilities into their customer experiences. Through both our Digital and Engage businesses, we bring technology and humanity together by combining advanced analytics, customized CRM, AI-enabled technology solutions, and automation with talented brand ambassadors to deliver happy, loyal customers and breakthrough business results." 

SECOND QUARTER 2021 FINANCIAL HIGHLIGHTS               

Revenue        

  • Second quarter 2021 GAAP revenue increased 22.4 percent to $554.8 million compared to $453.1 million in the prior year period.
  • Foreign exchange had a $10.4 million positive impact on revenue in the second quarter 2021.

Income from Operations

  • Second quarter 2021 GAAP income from operations was $65.8 million, or 11.9 percent of revenue, compared to $49.0 million, or 10.8 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 $78.6 million or 14.2 percent of revenue versus $56.7 million or 12.5 percent for the prior year period.
  • Foreign exchange had a $1.1 million negative impact on income from operations in the second quarter 2021.

Adjusted EBITDA        

  • Second quarter 2021 Non-GAAP Adjusted EBITDA was $95.7 million or 17.3 percent of revenue, compared to $71.0 million or 15.7 percent of revenue in the prior year period.

Earnings Per Share

  • Second quarter 2021 GAAP fully diluted earnings per share was $1.00 compared to $0.67 for the same period last year.
  • Non-GAAP fully diluted earnings per share was $1.27 compared to $0.85 in the prior year period.

Bookings

  • During the second quarter 2021, TTEC signed an estimated $204 million in annualized contract value compared to $214 million in the prior year period. Second 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 second quarter 2021 was $63.1 million compared to $43.1 million for the second quarter 2020.
  • Capital expenditures in the second quarter 2021 were $12.0 million compared to $15.1 million for the second quarter 2020.
  • As of June 30, 2021, TTEC had cash and cash equivalents of $174.7 million and debt of $842.5 million, resulting in a net debt position of $667.8 million. This compares to a net debt position of $231.7 million for the same period 2020. The increase in net debt is primarily attributable to the acquisition of Avtex Solutions Holdings, LLC in April 2021.
  • As of June 30, 2021, TTEC had approximately $360 million of additional borrowing capacity available under its credit facility compared to $195 million for the same period 2020.
  • Paid a $0.43 per share, $20.1 million in the aggregate, semi-annual dividend on April 21, 2021, an approximate 7.5 percent increase over the semi-annual dividend paid in October 2020 and a 26.5 percent increase over the April 2020 dividend.

SEGMENT REPORTING & COMMENTARY

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

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

  • Second quarter 2021 GAAP revenue for TTEC Digital increased 40.0 percent to $108.0 million from $77.1 million for the year ago period. Income from operations was $9.6 million or 8.9 percent of revenue compared to operating income of $14.4 million or 18.6 percent of revenue for the prior year period.
  • Non-GAAP income from operations was $17.1 million, or 15.8 percent of revenue compared to operating income of $16.0 million or 20.7 percent of revenue in the prior year period.
  • Foreign exchange had a $1.2 million positive impact on revenue and negligible impact on income from operations.

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

  • Second quarter 2021 GAAP revenue for TTEC Engage increased 18.8 percent to $446.8 million from $375.9 million for the year ago period. Income from operations was $56.3 million or 12.6 percent of revenue compared to operating income of $34.6 million or 9.2 percent of revenue for the prior year period.
  • Non-GAAP income from operations was $61.5 million or 13.8 percent of revenue compared to operating income of $40.7 million or 10.8 percent of revenue in the prior year period.
  • Foreign exchange had a $9.2 million positive impact on revenue and $1.1 million negative impact on income from operations.

BUSINESS OUTLOOK

"We had an exceptional quarter that exceeded our revenue and profit forecast," commented Regina Paolillo, chief financial and administrative officer. "Our year-to-date 2021 results further underscore the market differentiation in our technology-rich customer experience-as-a-service offerings as we capitalize on the favorable trends within a large and growing addressable market."

Paolillo continued, "We believe our clients will continue to turn to TTEC as their trusted go-to-partner for exceptional CX technology and service solutions. We have a high degree of confidence in our improved 2021 outlook, including the revenue and profitability split between the third and fourth quarters of the year."

Our raised full-year 2021 outlook is as follows:

Revenue between $2.248 and $2.266 billion, an increase of 15.3 and 16.3 percent over the prior year.

Non-GAAP Operating Income margins between 12.4 and 12.7 percent.

  • Margin of approximately 13.3 percent for TTEC Digital and 12.4 percent for TTEC Engage

Non-GAAP Adjusted EBITDA margins between 15.3 and 15.7 percent.

  • Margin of approximately 16.2 percent for TTEC Digital and 15.3 percent for TTEC Engage

Non-GAAP Earnings Per Share between $4.35 and $4.51.

Capital expenditures are estimated to between 2.9 and 3.1 percent of revenue, of which approximately 60 percent is growth oriented.  

Effective tax rate for the full year is estimated between 22 and 24 percent.

Diluted share count for the full year is estimated between 47.2 and 47.6 million.

We estimate the second half 2021 mix as follows:

  • Revenue: 49 percent third quarter, 51 percent fourth quarter
  • Non-GAAP Operating Income: 44 percent third quarter, 56 percent fourth quarter
  • Non-GAAP Adjusted EBITDA: 45 percent third quarter, 55 percent fourth quarter
  • Non-GAAP Earnings Per Share: 43 percent third quarter, 57 percent fourth quarter

We estimate the Digital - Engage second half 2021 mix as follows:

  • Revenue: 20 percent Digital, 80 percent Engage, of which 47 percent of Digital and 52 percent of Engage in the fourth quarter, respectively.
  • Non-GAAP Operating Income: 24 percent Digital, 76 percent Engage, of which 44 percent of Digital and 60 percent of Engage in the fourth quarter, respectively.
  • Adjusted EBITDA: 23 percent Digital, 77 percent Engage, of which 45 percent of Digital and 58 percent of Engage in the fourth quarter, respectively.

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 & growth, content moderation, fraud mitigation, 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 nearly 58,500 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 the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of TTEC Holdings, Inc.'s management and are subject to significant risks and uncertainties. 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, 2020 and any subsequent filings with the U.S. Securities and Exchange Commission (the "SEC") and is available on TTEC's website www.ttec.com, and on the SEC's public website at www.sec.gov. Specifically, important factors that could cause our actual results to differ materially from those indicated in the forward looking statements include, among others, are risks related to our business operations and strategy, including 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; our dependance on 3rd parties for our cloud solutions; the impact of COVID-19 on our business and our clients' business; risks inherent in our rapid 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 risks related to our technology, including cybersecurity, the reliability of our information technology infrastructure and our ability to consistently deliver uninterrupted service to our clients; the risk related to our international operations; the risks related to legal impacts on our operations, in particular rapidly changing laws that regulate our and our clients' business, such as data privacy and data protection laws and healthcare, financial and public sector specific regulations, our ability to comply with these laws timely, and cost of wage and hour litigation in the United States; and risks inherent in our equity structure including our controlling shareholder risk, and Delaware choice of dispute resolution risks. TTEC Holdings, Inc. does not undertake to update any forward-looking statements.

 

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(unaudited)
























Three months ended


Six months ended




June 30,


June 30,




2021


2020


2021


2020











Revenue


$  554,794


$  453,081


$ 1,094,013


$    885,294











Operating Expenses:










Cost of services


400,323


337,306


788,983


658,863


Selling, general and administrative


61,300


47,360


114,057


97,194


Depreciation and amortization


24,916


18,660


45,375


37,532


Restructuring and integration charges, net

1,725


793


2,127


1,331


Impairment losses


700


-


4,217


696

         Total operating expenses


488,964


404,119


954,759


795,616











Income From Operations


65,830


48,962


139,254


89,678












Other income (expense), net


(2,104)


(4,374)


(4,525)


(10,206)











Income Before Income Taxes


63,726


44,588


134,729


79,472












Provision for income taxes


(11,353)


(11,039)


(27,332)


(21,238)











Net Income


52,373


33,549


107,397


58,234












Net income attributable to noncontrolling interest

(5,004)


(2,224)


(9,610)


(5,375)











Net Income Attributable to TTEC Stockholders

$    47,369


$    31,325


$      97,787


$      52,859





















Net Income Per Share




















Basic


$       1.12


$       0.72


$         2.30


$         1.25












Diluted


$       1.10


$       0.72


$         2.27


$         1.24











Net Income Per Share Attributable to TTEC Stockholders



















Basic


$       1.01


$       0.67


$         2.09


$         1.14












Diluted


$       1.00


$       0.67


$         2.06


$         1.13





















Income From Operations Margin


11.9%


10.8%


12.7%


10.1%

Net Income Margin


9.4%


7.4%


9.8%


6.6%

Net Income Attributable to TTEC Stockholders Margin

8.5%


6.9%


8.9%


6.0%

Effective Tax Rate


17.8%


24.8%


20.3%


26.7%





















Weighted Average Shares Outstanding








  Basic


46,840


46,619


46,792


46,559

  Diluted


47,409


46,861


47,388


46,838

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(In thousands)

(unaudited)





















Three months ended


Six months ended



June 30,


June 30,



2021


2020


2021


2020










Revenue:









TTEC Digital


$     107,995


$       77,143


$     171,582


$     154,699

TTEC Engage


446,799


375,938


922,431


730,595

Total


$     554,794


$      453,081


$  1,094,013


$     885,294










Income From Operations:









TTEC Digital


$         9,565


$       14,376


$      13,767


$       24,634

TTEC Engage


56,265


34,586


125,487


65,044

Total


$       65,830


$       48,962


$     139,254


$       89,678

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)








June 30,


 December 31, 



2021


2020











ASSETS





Current assets:





   Cash and cash equivalents


$         174,742


$       132,914

   Accounts receivable, net


354,662


378,397

   Other current assets


177,657


145,491

      Total current assets


707,061


656,802






Property and equipment, net


168,685


178,706

Other assets


1,161,882


680,900






Total assets


$      2,037,628


$     1,516,408






LIABILITIES AND EQUITY





Total current liabilities


$         410,210


$       396,170

Other long-term liabilities


1,040,317


609,500

Redeemable noncontrolling interest


54,800


52,976

Total equity


532,301


457,762






Total liabilities and equity


$      2,037,628


$     1,516,408

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

(In thousands, except per share data)

(unaudited)















Three months ended





Six months ended




June 30,







June 30,




2021


2020





2021


2020













Revenue


$  554,794


$  453,081





$ 1,094,013


$    885,294













Reconciliation of Adjusted EBITDA:
























Net Income


$    52,373


$    33,549





$    107,397


$      58,234

   Interest income


(230)


(491)





(409)


(855)

   Interest expense


3,381


3,104





5,183


12,696

   Provision for income taxes


11,353


11,039





27,332


21,238

   Depreciation and amortization


24,916


18,660





45,375


37,532

   Asset impairment, restructuring and integration charges


2,425


793





6,344


2,027

   Gain on sale of business units


-


(142)





-


(388)

   Changes in acquisition contingent consideration


169


(1,084)





1,046


(4,349)

   Grant income for pandemic relief


(2,012)


-





(8,044)


-

   Loss on dissolution of subsidiary


-


2,467





-


2,467

   Equity-based compensation expenses


3,371


3,057





7,399


5,976













 Adjusted EBITDA


$    95,746


$    70,952





$    191,623


$    134,578

























Reconciliation of Free Cash Flow:
























Cash Flow From Operating Activities:












   Net income


$    52,373


$    33,549





$    107,397


$      58,234

   Adjustments to reconcile net income to net cash












       provided by operating activities:












          Depreciation and amortization


24,916


18,660





45,375


37,532

          Other


(14,237)


(9,096)





(19,933)


9,512

   Net cash provided by operating activities


63,052


43,113





132,839


105,278













Less - Total Cash Capital Expenditures


12,028


15,102





23,593


31,915













Free Cash Flow


$    51,024


$    28,011





$    109,246


$      73,363

























Reconciliation of Non-GAAP Income from Operations:
























Income from Operations


$    65,830


$    48,962





$    139,254


$      89,678

Restructuring charges, net


1,725


793





2,127


1,331

Impairment losses


700


-





4,217


696

   Grant income for pandemic relief


(2,012)


-





(8,044)


-

   Equity-based compensation expenses


3,371


3,057





7,399


5,976

Amortization of purchased intangibles 


8,968


3,844





13,483


7,721













Non-GAAP Income from Operations


$    78,582


$    56,656





$    158,436


$    105,402













Non-GAAP Income from Operations Margin


14.2%


12.5%





14.5%


11.9%

























Reconciliation of Non-GAAP EPS:
























Net Income


$    52,373


$    33,549





$    107,397


$      58,234

Add:  Asset restructuring and impairment charges


2,425


793





6,344


2,027

Add:  Equity-based compensation expenses


3,371


3,057





7,399


5,976

Add:  Amortization of purchased intangibles


8,968


3,844





13,483


7,721

Add:  Interest charge related to future purchase of remaining
30% for Motif acquisition


-


(204)





-


6,273

Add:  Loss on dissolution of subsidary


-


2,467





-


2,467

Less:  Changes in acquisition contingent consideration


169


(1,084)





1,046


(4,349)

Less:  Gain on sale of business units


-


(142)





-


(388)

Less:  Grant income for pandemic relief


(2,012)


-





(8,044)


-

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


(5,072)


(2,217)





(7,677)


(3,070)













 Non-GAAP Net Income


$    60,222


$    40,063





$    119,948


$      74,891













    Diluted shares outstanding


47,409


46,861





47,388


46,838













 Non-GAAP EPS


$1.27


$0.85





$2.53


$1.60

 

Reconciliation of Adjusted EBITDA by Segment :


TTEC Engage


TTEC Digital


TTEC Engage


TTEC Digital



Q2 21


Q2 20


Q2 21

Q2 20


YTD 21


YTD 20


YTD 21

YTD 20
















Earnings before Income Taxes


$    54,156


$    30,190


$     9,569

$    14,398


$    120,918


$      54,772


$    13,810

$    24,700

   Interest income / expense, net


3,186


2,635


(33)

(22)


4,848


11,909


(72)

(67)

   Depreciation and amortization


16,427


15,382


8,489

3,278


32,999


30,966


12,376

6,566

   Asset impairment, restructuring and integration charges


1,566


679


859

114


5,476


1,010


867

1,016

   Gain on sale of business units


-


(142)


-

-


-


(388)


-

-

   Grant income for pandemic relief


(1,906)


-


(106)

-


(7,938)


-


(106)

-

   Changes in acquisition contingent consideration


169


(1,084)


-

-


1,046


(4,349)


-

-

   Loss on dissolution of subsidiary


-


2,467


-

-


-


2,467


-

-

   Equity-based compensation expenses


2,291


2,128


1,079

929


5,033


4,198


2,366

1,778
















 Adjusted EBITDA


$    75,889


$    52,255


$    19,857

$    18,697


$    162,382


$    100,585


$    29,241

$    33,993

 

Investor Relations Contact

Paul Miller

+1.303.397.8641

Public Relations Contact

Nick Cerise

+1.303.397.8331

Address

9197 South Peoria Street

Englewood, CO 80112

Contact

ttec.com

+1.800.835.3832

 

TTEC Logo (PRNewsfoto/TTEC Holdings, Inc.)

 

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SOURCE TTEC Holdings, Inc.