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TTEC Announces Fourth Quarter and Full Year 2023 Financial Results

Full Year 2023

Revenue was $2.463 Billion, up 0.8 Percent
Operating Income was $118.0 Million or 4.8 Percent of Revenue
($200.4 Million or 8.1 Percent of Revenue Non-GAAP)
Net Income was $18.3 Million or 0.7 Percent of Revenue
($103.2 Million or 4.2 Percent of Revenue Non-GAAP)
Adjusted EBITDA was $271.5 Million or 11.0 Percent of Revenue
Fully Diluted EPS was $0.39, $2.18 Non-GAAP

Fourth Quarter 2023

Revenue was $626.2 Million, down 4.9 Percent
Operating Income was 16.9 Million or 2.7 Percent of Revenue
($41.8 Million or 6.7 Percent of Revenue Non-GAAP)
Net Income was ($8.2) Million or (1.3) Percent of Revenue
($17.5 Million or 2.8 Percent of Revenue Non-GAAP)
Adjusted EBITDA was $57.5 Million or 9.2 Percent of Revenue
Fully Diluted EPS was ($0.17), $0.37 Non-GAAP

Provides Outlook for Full Year 2024

DENVER , Feb. 29, 2024 /PRNewswire/ -- TTEC Holdings, Inc. (NASDAQ:TTEC), a leading global CX (customer experience) technology and services innovator for AI-enabled CX with solutions from TTEC Engage and TTEC Digital, announced today financial results for the fourth quarter and full year ended December 31, 2023.

"As we have previously communicated, 2023 was a dynamic year for TTEC. The macroeconomic factors created a conservative and uncertain business environment that delayed client contracting decisions and lowered forecasts for certain clients in the second half of the year. While these factors moderated our results, we continued to make progress diversifying our business by growing our client base, completing a strategic phase of our geographic expansion, and expanding our AI-enabled solutions," commented Ken Tuchman, chairman and chief executive officer of TTEC.

"Our 2024 outlook reflects three very specific challenges in our TTEC Engage segment. First, client budget constraints and a conservative mindset in the second half of 2023 is carrying forward into our 2024 outlook. Second, a long-tenured client eliminated one of several lines of business that we supported. While our relationship remains strong with this client and we continue to service their customers across multiple other lines of business, the discontinuation of this one line of business contributes to the impact on our top and bottom line in 2024. Third, while we are pleased by the growing demand for our new offshore locations, the timing lag between our recent wins and normalized revenue run rate and margins is weighing on our outlook," Tuchman continued.

"In TTEC Digital, we delivered record bookings in the fourth quarter and the team is off to a strong start this year. Demand for our differentiated CX technology expertise continues to grow as cloud migrations and AI solutions drive our clients' CX digital transformation agendas."

Tuchman further stated, "As we move into 2024, we are laser focused on execution. We will continue to capitalize on our greatly expanded offshore footprint, deepen our relationships with new and existing clients, apply our AI-enabled solutions and accelerate our margin optimization initiatives."

"TTEC's board of directors' decision to reduce the dividend reflects a prudent shift to prioritize our capital deployment towards continued investments in sustainable growth initiatives and debt reduction associated with strategic acquisitions. As revised, the dividend is in line with our stock price and the dividend yield typical for our industry and the broader market. I am confident we are well positioned to emerge stronger as we exit 2024."

FULL YEAR 2023 FINANCIAL HIGHLIGHTS

Revenue

  • Full year 2023 GAAP revenue increased 0.8 percent to $2.463 billion compared to $2.444 billion in the prior year. 
  • Foreign exchange had a $4.4 million positive impact on revenue for the full year 2023.

Income from Operations

  • Full year 2023 GAAP income from operations was $118.0 million, or 4.8 percent of revenue, compared to $168.5 million, or 6.9 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 $200.4 million, or 8.1 percent of revenue, compared to $248.5 million, or 10.2 percent in the prior year.
  • Foreign exchange had a $2.2 million negative impact on Non-GAAP income from operations for the full year 2023.

Adjusted EBITDA    

  • Full year 2023 Non-GAAP Adjusted EBITDA was $271.5 million, or 11.0 percent of revenue, compared to $320.1 million, or 13.1 percent of revenue in the prior year.

Earnings Per Share

  • Full year 2023 GAAP fully diluted earnings per share was $0.39 compared to $2.48 in the prior year.
  • Non-GAAP fully diluted earnings per share was $2.18 compared to $3.59 in the prior year.

FOURTH QUARTER 2023 FINANCIAL HIGHLIGHTS

Revenue

  • Fourth quarter 2023 GAAP revenue decreased 4.9 percent to $626.2 million compared to $658.3 million in the prior year. 
  • Foreign exchange had a $5.5 million positive impact on revenue in the fourth quarter of 2023.

Income from Operations

  • Fourth quarter 2023 GAAP income from operations was $16.9 million, or 2.7 percent of revenue, compared to $48.7 million, or 7.4 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 $41.8 million, or 6.7 percent of revenue, compared to $69.9 million, or 10.6 percent for the prior year.
  • Foreign exchange had a $2.4 million negative impact on Non-GAAP income from operations in the fourth quarter 2023.

Adjusted EBITDA    

  • Fourth quarter 2023 Non-GAAP Adjusted EBITDA was $57.5 million, or 9.2 percent of revenue, compared to $86.5 million, or 13.1 percent of revenue in the prior year.

Earnings Per Share

  • Fourth quarter 2023 GAAP fully diluted earnings per share was ($0.17) compared to $0.54 in the prior year.
  • Non-GAAP fully diluted earnings per share was $0.37 compared to $0.91 in the prior year.

STRONG CASH FLOW AND BALANCE SHEET FUND INVESTMENTS AND DIVIDENDS

  • Cash flow from operations in the fourth quarter 2023 was $31.5 million compared to $18.2 million for the fourth quarter 2022. For the full year 2023, cash flow from operations was $144.8 million compared to $137.0 million for the same period 2022.
  • Capital expenditures in the fourth quarter 2023 were $13.1 million compared to $19.4 million for the fourth quarter 2022. For the full year 2023, capital expenditures were $67.8 million compared to $84.0 million for the same period 2022.
  • As of December 31, 2023, TTEC had cash and cash equivalents of $172.7 million and debt of $999.3 million, resulting in a net debt position of $826.5 million. This compares to a net debt position of $810.2 million for the same period 2022.
  • As of December 31, 2023, TTEC's remaining borrowing capacity under its revolving credit facility was approximately $90 million compared to $335 million for the same period 2022.
  • On February 27, 2024, the Board declared the next semi-annual dividend of $0.06 per share, or $2.9 million, payable on April 30, 2024 to shareholders of record as of April 3, 2024. TTEC's board of directors' decision to reduce the dividend reflects a prudent shift to prioritize our capital deployment towards continued investments in sustainable growth initiatives and debt reduction associated with strategic acquisitions.
  • TTEC paid a $0.52 per share, or $24.7 million, semi-annual dividend on October 31, 2023.

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

  • Fourth quarter 2023 GAAP revenue for TTEC Digital decreased 2.1 percent to $119.1 million from $121.7 million for the year ago period. Income from operations was $10.0 million or 8.4 percent of revenue compared to an operating income of $9.9 million or 8.2 percent of revenue in the prior year. 
  • Non-GAAP income from operations was $17.7 million, or 14.8 percent of revenue compared to operating income of $18.0 million or 14.8 percent of revenue in the prior year.

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

  • Fourth quarter 2023 GAAP revenue for TTEC Engage decreased 5.5 percent to $507.1 million from $536.6 million for the year ago period. Income from operations was $6.9 million or 1.4 percent of revenue compared to operating income of $38.8 million, or 7.2 percent of revenue in the prior year.
  • Non-GAAP income from operations was $24.1 million, or 4.8 percent of revenue, compared to operating income of $52.0 million, or 9.7 percent of revenue in the prior year.
  • Foreign exchange had a $5.3 million positive impact on revenue and $1.9 million negative impact on income from operations.

BUSINESS OUTLOOK

"We ended 2023 in line with expectations but the recent dynamics in the Engage segment are causing a reduction in our 2024 revenue and margin outlook compared to 2023. We are confident in the initiatives currently in motion that focus on growth and margin improvement," commented Francois Bourret, interim chief financial officer of TTEC. "As digital transformation continues to be a top priority for our clients, we are encouraged by the growing momentum with TTEC Digital. As we move forward, we will navigate this environment to position the company to exit 2024 with a view towards longer-term profitable growth."

 

TTEC First Quarter and Full Year 2024 Outlook















First Quarter 2024
Guidance


First Quarter 2024
Mid-Point


Full Year 2024
Guidance


Full Year 2024
Mid-Point

Revenue

$559M$569M


$564M


$2,275M$2,365M


$2,320M

Non-GAAP adjusted EBITDA

$52M$58M


$55M


$215M$259M


$237M

Non-GAAP adjusted EBITDA margins

9.3% — 10.2%


9.8 %


9.5% — 11.0%


10.2 %

Non-GAAP operating income

$36M$42M


$39M


$150M$194M


$172M

Non-GAAP operating income margins

6.4% — 7.4%


6.9 %


6.6% — 8.2%


7.4 %

Interest expense, net

($20M) — ($22M)


($21M)


($77M) — ($79M)


($78M)

Non-GAAP adjusted tax rate

23% — 25%


24 %


23% — 25%


24 %

Diluted share count

47.4M — 47.6M


47.5M


47.4M — 47.6M


47.5M

Non-GAAP earnings per a share

$0.25$0.34


$0.30


$1.15$1.86


$1.51

















Engage First Quarter and Full Year 2024 Outlook















First Quarter 2024
Guidance


First Quarter 2024
Mid-Point


Full Year 2024
Guidance


Full Year 2024
Mid-Point

Revenue

$453M$457M


$455M


$1,790M$1,850M


$1,820M

Non-GAAP adjusted EBITDA

$41M$45M


$43M


$149M$179M


$164M

Non-GAAP adjusted EBITDA margins

9.2% — 9.9%


9.5 %


8.4% — 9.7%


9.0 %

Non-GAAP operating income

$28M$32M


$30M


$95M$125M


$110M

Non-GAAP operating income margins

6.2% — 7.0%


6.6 %


5.3% — 6.8%


6.1 %

















Digital First Quarter and Full Year 2024 Outlook















First Quarter 2024
Guidance


First Quarter 2024
Mid-Point


Full Year 2024
Guidance


Full Year 2024
Mid-Point

Revenue

$106M$112M


$109M


$485M$515M


$500M

Non-GAAP adjusted EBITDA

$11M$13M


$12M


$66M$80M


$73M

Non-GAAP adjusted EBITDA margins

10.1% — 11.3%


10.7 %


13.5% — 15.5%


14.5 %

Non-GAAP operating income

$8M$10M


$9M


$55M$69M


$62M

Non-GAAP operating income margins

7.6% — 8.9%


8.3 %


11.2% — 13.3%


12.3 %

The Company has not quantitatively reconciled its guidance for Non-GAAP operating income, Non-GAAP operating income margins, Non-GAAP adjusted EBITDA, Non-GAAP adjusted EBITDA margins, or Non-GAAP earnings per share to their respective most comparable GAAP measures because certain of the reconciling items that impact these metrics, including restructuring and impairment charges, equity-based compensation expense, changes in acquisition contingent consideration, depreciation and amortization expense, and provision for income taxes are dependent on the timing of future events outside of the Company's control or cannot be reliably predicted. Accordingly, the Company is unable to provide reconciliations to GAAP operating income, operating income margins, EBITDA margins, and diluted earnings per share without unreasonable effort. Please note that the unavailable reconciling items could significantly impact the Company's 2024 financial results as reported under GAAP.

NON-GAAP FINANCIAL MEASURES

This press release contains a discussion of certain Non-GAAP financial measures that the Company includes to allow investors and analysts to measure, analyze and compare its financial condition and results of operations in a meaningful and consistent manner. A reconciliation of these Non-GAAP financial measures can be found in the tables accompanying this press release.

  • GAAP metrics are presented in accordance with Generally Accepted Accounting Principles.
  • Non-GAAP - As reflected in the attached reconciliation table, the definition of Non-GAAP may exclude from operating income, EBITDA, net income and earnings per share restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, among other items.

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 over 60,000 employees operate on six continents and bring technology and humanity together to deliver happy customers and differentiated business results. To learn more visit us at https://www.ttec.com.

FORWARD-LOOKING STATEMENTS

This Earnings Press Release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995., Forward-looking statements include, but are not limited to, statements relating to our operations, expected financial position, results of operation, effective tax rate, cash flow, leverage, liquidity, business strategy, competitive position, demand for our services in international operations, acquisition opportunities and impact of acquisitions, capital allocation and dividends, growth opportunities, spending, capital expenditures and investments, competition and market forecasts, industry trends, our human capital resources, and other business matters that are based on our current expectations, assumptions, and projections with respect to the future, and are not a guarantee of performance.

In this Release when we use words such as "may," "believe," "plan," "will," "anticipate," "estimate," "expect," "intend," "project," "would," "could," "target," or similar expressions, or when we discuss our strategy, plans, goals, initiatives, or objectives, we are making forward-looking statements. Unless otherwise indicated or except where the context otherwise requires, the terms "TTEC," "the Company," "we," "us" and "our"and other similar terms in this report refer to TTEC Holdings, Inc. and its subsidiaries. We caution you not to rely unduly on any forward-looking statements. Actual results may differ materially from those expressed in the forward-looking statements, and you should review and consider carefully the risks, uncertainties, and other factors that affect our business and may cause such differences as outlined in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2023 and any subsequent filings with the 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

Our forward-looking statements speak only as of the date that this release is issued. We undertake no obligation to update them, except as may be required by applicable law. Although we believe that our forward-looking statements are reasonable, they depend on many factors outside of our control and we can provide no assurance that they will prove to be correct.

Corporate Comms

Investor Relations

Marji Chimes

Paul Miller

marji.chimes@ttec.com

paul.miller@ttec.com

 

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,




2023


2022


2023


2022












Revenue

$ 626,181


$ 658,278


$2,462,817


$2,443,707












Operating Expenses:










Cost of services

505,814


495,339


1,932,877


1,856,518



Selling, general and administrative

74,744


80,602


290,873


287,433



Depreciation and amortization

24,904


31,730


101,272


111,791



Restructuring charges, net

3,145


1,412


8,041


5,673



Impairment losses

650


450


11,733


13,749


         Total operating expenses

609,257


609,533


2,344,796


2,275,164












Income From Operations

16,924


48,745


118,021


168,543













Other income (expense), net

(21,988)


(15,877)


(77,297)


(24,095)












(Loss) / Income Before Income Taxes

(5,064)


32,868


40,724


144,448













Provision for income taxes

(3,142)


(7,318)


(22,460)


(27,115)












Net (Loss) / Income

(8,206)


25,550


18,264


117,333













Net income attributable to noncontrolling interest

(1,694)


(3,197)


(9,836)


(14,093)












Net (Loss) / Income Attributable to TTEC Stockholders

$   (9,900)


$  22,353


$      8,428


$   103,240






















Net (Loss) / Income Per Share




















Basic

$    (0.17)


$     0.54


$        0.39


$        2.49













Diluted

$    (0.17)


$     0.54


$        0.39


$        2.48












Net (Loss) / Income Per Share Attributable to TTEC Stockholders




















Basic

$    (0.21)


$     0.47


$        0.18


$        2.19













Diluted

$    (0.21)


$     0.47


$        0.18


$        2.18






















Income From Operations Margin

2.7 %


7.4 %


4.8 %


6.9 %


Net (Loss) / Income Margin

(1.3) %


3.9 %


0.7 %


4.8 %


Net (Loss) / Income Attributable to TTEC Stockholders Margin

(1.6) %


3.4 %


0.3 %


4.2 %


Effective Tax Rate

(62.0) %


22.3 %


55.2 %


18.8 %






















Weighted Average Shares Outstanding









  Basic

47,425


47,220


47,335


47,121


  Diluted

47,503


47,299


47,419


47,335


 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(In thousands)











Three months ended


Twelve months ended



December 31,


December 31,



2023


2022


2023


2022











Revenue:









TTEC Digital

$ 119,118


$ 121,650


$    486,882


$    463,670


TTEC Engage

507,063


536,628


1,975,935


1,980,037


Total

$ 626,181


$ 658,278


$ 2,462,817


$ 2,443,707











Income From Operations:









TTEC Digital

$    9,982


$    9,924


$     29,846


$     34,895


TTEC Engage

6,942


38,821


88,175


133,648


Total

$  16,924


$  48,745


$   118,021


$   168,543


 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)






December 31,


 December 31, 


2023


2022





ASSETS




Current assets:




   Cash and cash equivalents

$        172,747


$         153,435

   Accounts receivable, net

394,868


417,637

   Prepaids and other current assets

95,064


133,365

   Income and other tax receivables

18,524


45,533

      Total current assets

681,203


749,970





Property and equipment, net

191,003


183,360

Operating lease assets

121,574


92,431

Goodwill

808,988


807,845

Other intangibles assets, net

198,433


233,909

Income and other tax receivables, long-term

44,673


-

Other assets

139,724


86,447





Total assets

$     2,185,598


$      2,153,962





LIABILITIES AND EQUITY




Current liabilities:




   Accounts payable

$          96,577


$           93,937

   Accrued employee compensation and benefits

146,184


145,096

   Deferred revenue

81,171


87,846

   Current operating lease liabilities

38,271


35,271

   Other current liabilities

40,824


49,214

      Total current liabilities

403,027


411,364





Long-term liabilities:




   Line of credit

995,000


960,000

   Non-current operating lease liabilities

96,809


69,575

   Other long-term liabilities

75,220


79,273

      Total long-term liabilities

1,167,029


1,108,848





Redeemable noncontrolling interest

-


55,645





Equity:




   Common stock

474


472

   Additional paid in capital

407,415


367,673

   Treasury stock

(589,807)


(593,164)

   Accumulated other comprehensive income (loss)

(89,876)


(126,301)

   Retained earnings

870,429


911,233

   Noncontrolling interest

16,907


18,192

      Total equity

615,542


578,105





Total liabilities and equity

$      2,185,598


$      2,153,962

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)





 Twelve months ended 

 Twelve months ended 


 December 31, 

 December 31, 


2023

2022




Cash flows from operating activities:



     Net income

$                       18,264

$                      117,333

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



          Depreciation and amortization

101,272

111,791

          Amortization of contract acquisition costs

2,288

2,065

          Amortization of debt issuance costs

1,067

1,018

          Imputed interest expense and fair value adjustments to contingent consideration

7,579

1,746

          Provision for credit losses

2,009

9,391

          Loss on disposal of assets

2,219

1,916

          Loss on dissolution of subsidiary

301

-

          Impairment losses

11,733

13,749

          Deferred income taxes

(7,528)

(11,001)

          Excess tax benefit from equity-based awards

1,705

(1,122)

          Equity-based compensation expense

22,071

17,571

          Gain on foreign currency derivatives

(3)

(7)

          Changes in assets and liabilities, net of acquisitions:



                Accounts receivable 

22,359

(74,564)

                Prepaids and other assets 

8,570

43,699

                Accounts payable and accrued expenses 

9,518

(12,695)

                Deferred revenue and other liabilities 

(58,659)

(83,842)

                    Net cash provided by operating activities

144,765

137,048




Cash flows from investing activities:



     Proceeds from sale of property and equipment

261

229

     Purchases of property, plant and equipment

(67,839)

(84,012)

     Acquisitions

-

(142,420)

          Net cash used in investing activities

(67,578)

(226,203)




Cash flows from financing activities:



     Net proceeds from / (repayments of) line of credit

35,000

169,000

     Payments on other debt

(2,317)

(3,245)

     Payments of contingent consideration and hold back payments to acquisitions

(37,676)

(9,600)

     Dividends paid to shareholders

(49,232)

(48,072)

     Payments to noncontrolling interest

(10,972)

(11,883)

     Tax payments related to the issuance of restricted stock units

(3,037)

(7,164)

          Net cash (used in) / provided by financing activities

(68,234)

89,036




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

(2,112)

(13,499)




Increase / (decrease) in cash, cash equivalents and restricted cash

6,841

(13,618)

Cash, cash equivalents and restricted cash, beginning of period

167,064

180,682

Cash, cash equivalents and restricted cash, end of period

$                      173,905

$                      167,064

 

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,



2023


2022





2023


2022













Revenue


$  626,181


$  658,278





$ 2,462,817


$ 2,443,707













Reconciliation of Non-GAAP Income from Operations and EBITDA:























Income from Operations


$   16,924


$   48,745





$    118,021


$    168,543

Restructuring charges, net


3,145


1,412





8,041


5,673

Impairment losses


650


450





11,733


13,749

Cybersecurity incident related impact, net of insurance recovery


-


(446)





(3,210)


(3,610)

Software accelerated amortization


-


6,382





-


8,509

Write-off of acquisition related receivable


-


-





-


900

Property costs not related to operations


757


-





1,501


-

Liability related to notifications triggered by labor scheme   (1)


6,000


-





6,000


-

Grant income for pandemic relief


-


-





40


-

Change in acquisition related obligation


-


-





483


-

Equity-based compensation expenses


5,661


4,331





22,071


17,571

Amortization of purchased intangibles 


8,676


9,038





35,759


37,169













         Non-GAAP Income from Operations


$   41,813


$   69,912





$    200,439


$    248,504













         Non-GAAP Income from Operations Margin


6.7 %


10.6 %





8.1 %


10.2 %













Depreciation and amortization


15,894


16,310





64,840


66,113

Changes in acquisition contingent consideration


616


(272)





7,480


1,798

Change in escrow balance related to acquisition


-


-





625


-

Loss on dissolution of subsidiary


-


-





301


-

Foreign exchange loss / (gain), net


1,112


1,710





1,950


(6,514)

Other income (expense), net


(1,894)


(1,156)





(4,126)


10,161













         Adjusted EBITDA


$   57,541


$   86,504





$    271,509


$    320,062













         Adjusted EBITDA Margin


9.2 %


13.1 %





11.0 %


13.1 %













Reconciliation of Non-GAAP EPS:
























Net (Loss) / Income


$    (8,206)


$   25,550





$      18,264


$    117,333

Add:  Asset impairment and restructuring charges


3,795


1,862





19,774


19,422

Add:  Equity-based compensation expenses


5,661


4,331





22,071


17,571

Add:  Amortization of purchased intangibles


8,676


9,038





35,759


37,169

Add:  Cybersecurity incident related impact, net of insurance recovery


-


(446)





(3,210)


(3,610)

Add:  Software accelerated amortization


-


6,382





-


8,509

Add:  Write-off of acquisition related receivable


-


-





-


900

Add:  Property costs not related to operations


757


-





1,501


-

Add:  Liability related to notifications triggered by labor scheme


6,000


-





6,000


-

Add:  Grant income for pandemic relief


-


-





40


-

Add:  Change in acquisition related obligation


-


-





483


-

Add:  Changes in acquisition contingent consideration


616


(272)





7,480


1,798

Add:  Changes in escrow balance related to acquisition


-


-





625


-

Add:  Loss on dissolution of subsidiary


-


-





301


-

Add:  Foreign exchange loss / (gain), net


1,112


1,710





1,950


(6,514)

Less:  Changes in valuation allowance, return to provision adjustments and

other, and tax effects of items separately disclosed above


(885)


(4,909)





(7,859)


(22,872)













         Non-GAAP Net Income


$   17,526


$   43,246





$    103,179


$    169,706













             Diluted shares outstanding


47,503


47,299





47,419


47,335













         Non-GAAP EPS


$0.37


$0.91





$2.18


$3.59













Reconciliation of Free Cash Flow:
























Cash Flow From Operating Activities:












   Net (Loss) / Income


$    (8,206)


$   25,550





$      18,264


$    117,333

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











          Depreciation and amortization


24,904


31,730





101,272


111,791

          Other


14,836


(39,045)





25,229


(92,076)

   Net cash provided by operating activities


31,534


18,235





144,765


137,048













Less - Total Cash Capital Expenditures


13,117


19,448





67,839


84,012













        Free Cash Flow


$   18,417


$    (1,213)





$      76,926


$      53,036


(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


Q4 23


Q4 22


Q4 23

Q4 22


YTD 23


YTD 22


YTD 23

YTD 22















Income from Operations

$     6,942


$  38,821


$   9,982

$   9,924


$     88,175


$   133,648


$  29,846

$  34,895

Restructuring charges, net

1,823


1,130


1,322

282


4,250


5,251


3,791

422

Impairment losses

700


24


(50)

426


8,929


13,112


2,804

637

Cybersecurity incident related impact, net of insurance recovery

-


(446)


-

-


(3,210)


(3,610)


-

-

Software accelerated amortization

-


5,106


-

1,276


-


6,808


-

1,701

Write-off of acquisition related receivable

-


-


-

-


-


-


-

900

Property costs not related to operations

757


-


-

-


1,501


-


-

-

Grant income for pandemic relief

-


-


-

-


40


-


-

-

Change in acquisition related obligation

-


-


-

-


-


-


483

-

Liability related to notifications triggered by labor scheme

6,000


-


-

-


6,000


-


-

-

Equity-based compensation expenses

3,658


2,659


2,003

1,672


14,257


11,476


7,814

6,095

Amortization of purchased intangibles 

4,264


4,658


4,412

4,380


18,215


17,272


17,544

19,897















         Non-GAAP Income from Operations

$   24,144


$  51,952


$ 17,669

$ 17,960


$   138,157


$   183,957


$  62,282

$  64,547















Depreciation and amortization

13,458


13,667


2,436

2,643


55,153


54,561


9,687

11,552

Changes in acquisition contingent consideration

616


(272)


-

-


7,480


1,798


-

-

Change in escrow balance related to acquisition

-


-


-

-


625


-


-

-

Loss on dissolution of subsidiary

-


-


-

-


301


-


-

-

Foreign exchange loss / (gain), net

1,271


1,606


(159)

104


2,085


(5,540)


(135)

(974)

Other income (expense), net

(1,728)


(1,063)


(166)

(93)


(4,060)


9,352


(66)

809















         Adjusted EBITDA

$   37,761


$  65,890


$ 19,780

$ 20,614


$   199,741


$   244,128


$  71,768

$  75,934