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TTEC Announces Second Quarter 2022 Financial Results

Second Quarter 2022
Revenue was $604.3 Million
Operating Income was $35.9 Million or 5.9 Percent of Revenue
Non-GAAP $61.2 Million or 10.1 Percent of Revenue
Net Income was $25.2 Million ($46.4 Million Non-GAAP)
Adjusted EBITDA was $84.1 Million or 13.9 Percent of Revenue
Fully Diluted EPS was $0.53 ($0.98 Non-GAAP)
Signs Bookings of $170 Million
Updates Outlook for Full Year 2022

DENVER , Aug. 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 second quarter, ended June 30, 2022.

"We exceeded our second quarter revenue and profit expectations and are confident in the long-term enduring strength of our business," commented Ken Tuchman, chairman and chief executive officer of TTEC. "Over the years, we have diversified our business by expanding our CX capabilities, global clientele, industry expertise, and geographic footprint. Furthermore, our suite of digitally-enabled customer experience solutions provide the outcomes that our clients need to deliver increased customer value and brand loyalty. Our ability to help attract, retain, serve, and grow profitable customer relationships remains mission critical in any economic cycle. Amidst this dynamic macro environment, we will continue to focus on innovating new digital CX solutions, delivering superior services to our clients, maintaining business agility, and prudently investing for the future."

SECOND QUARTER 2022 FINANCIAL HIGHLIGHTS               

Revenue        

  • Second quarter 2022 GAAP revenue increased 8.9 percent to $604.3 million compared to $554.8 million in the prior year period. 
  • Foreign exchange had a $10.5 million negative impact on revenue in the second quarter 2022.

Income from Operations

  • Second quarter 2022 GAAP income from operations was $35.9 million, or 5.9 percent of revenue, compared to $65.8 million, or 11.9 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 $61.2 million or 10.1 percent of revenue versus $78.6 million or 14.2 percent for the prior year period.
  • Foreign exchange had a $2.7 million positive impact on Non-GAAP income from operations in the second quarter 2022.

Adjusted EBITDA        

  • Second quarter 2022 Non-GAAP Adjusted EBITDA was $84.1 million, or 13.9 percent of revenue, compared to $95.7 million, or 17.3 percent of revenue in the prior year period.

Earnings Per Share

  • Second quarter 2022 GAAP fully diluted earnings per share was $0.53 compared to $1.00 for the same period last year.
  • Non-GAAP fully diluted earnings per share was $0.98 compared to $1.27 in the prior year period.

Bookings

  • During the second quarter 2022, TTEC signed an estimated $170 million in annualized contract value compared to $204 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 2022 was $77.6 million compared to $63.1 million for the second quarter 2021.
  • Capital expenditures in the second quarter 2022 were $19.1 million compared to $12.0 million for the second quarter 2021.
  • As of June 30, 2022, TTEC had cash and cash equivalents of $163.2 million and debt of $934.7 million, resulting in a net debt position of $771.5 million . This compares to a net debt position of $667.8 million for the same period 2021. The increase in net debt is primarily attributable to the Faneuil asset acquisition in April 2022 and capital distributions.
  • As of June 30, 2022, TTEC's remaining borrowing capacity under its revolving credit facility was approximately $425 million compared to $360 million for the same period 2021.
  • TTEC paid a $0.50 per share, or $23.5 million, semi-annual dividend on April 20, 2022 to shareholders of record on March 31, 2022. This dividend represents a 16.3 percent increase over the April 2021 dividend and 6.4 percent over the October 2021 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

  • Second quarter 2022 GAAP revenue for TTEC Digital increased 8.0 percent to $116.6 million from $108.0 million for the year ago period. Income from operations was $10.9 million or 9.3 percent of revenue compared to operating income of $9.6 million or 8.9 percent of revenue for the prior year period. 
  • Non-GAAP income from operations was $17.1 million, or 14.7 percent of revenue compared to operating income of $17.1 million or 15.8 percent of revenue in the prior year period.

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

  • Second quarter 2022 GAAP revenue for TTEC Engage increased 9.1 percent to $487.7 million from $446.8 million for the year ago period. Income from operations was $25.0 million or 5.1 percent of revenue compared to operating income of $56.3 million or 12.6 percent of revenue for the prior year period.
  • Non-GAAP income from operations was $44.1 million, or 9.0 percent of revenue compared to operating income of $61.5 million or 13.8 percent of revenue in the prior year period.
  • Foreign exchange had a $9.7 million negative impact on revenue and $2.5 million positive impact on income from operations.

BUSINESS OUTLOOK

"We are pleased with our second quarter performance, achieving many of our key metrics, closing on a meaningful strategic asset acquisition, and surpassing $600 million in revenue in the second quarter for the first time, representing double-digit top-line growth of 10.8 percent over the same period last year on a constant currency basis, commented Dustin Semach, chief financial officer of TTEC. "Taking it all together, amid a dynamic, rapidly changing macroeconomic environment, we delivered a strong first half of 2022. However, our second half 2022 updated outlook reflects a recent shift in client decision making and moderation in certain verticals' growth-related volume forecasts."

Semach continued, "We are helping organizations across the world deliver value-added, outcome-based customer experiences through our digitally-enabled CX technology and service solutions. The investments we are making, the client relationships we have built, and our talented leadership and teams position us well to navigate the dynamic environment ahead of us." 

   

Third Quarter 2022
Guidance

 

Full Year 2022
Updated Guidance

Revenue

 

$575M$585M

 

$2,399M$2,429M

Non-GAAP adjusted EBITDA

 

$63M$69M

 

$312M$328M

Non-GAAP adjusted EBITDA margins

 

11.0% — 11.8%

 

13.0% — 13.5%

Non-GAAP operating income

 

$46M$52M

 

$236M$252M

Non-GAAP operating income margins

 

8.0% — 8.9%

 

9.8% — 10.4%

Interest expense, net

 

($10M) — ( $11M)

 

($32M) — ( $33M)

Effective tax rate

 

23% — 25%

 

22% — 24%

Diluted share count

 

47.4M — 47.8M

 

47.4M — 47.8M

Non-GAAP earnings per a share

 

$0.56$0.65

 

$3.40$3.66

         

Engage Full Year 2022 outlook

       
   

Third Quarter 2022
Guidance

 

Full Year 2022
Updated Guidance

Revenue

 

$461M$467M

 

$1,938M$1,958M

Non-GAAP adjusted EBITDA

 

$46M$50M

 

$240M$250M

Non-GAAP adjusted EBITDA margins

 

10.0% — 10.7%

 

12.4% — 12.7%

Non-GAAP operating income

 

$32M$36M

 

$177M$187M

Non-GAAP operating income margins

 

6.9% — 7.7%

 

9.1% — 9.5%

         

Digital Full Year 2022 outlook

       
   

Third Quarter 2022
Guidance

 

Full Year 2022
Updated Guidance

Revenue

 

$114M$118M

 

$461M$471M

Non-GAAP adjusted EBITDA

 

$17M$19M

 

$72M$78M

Non-GAAP adjusted EBITDA margins

 

15.1% — 16.3%

 

15.6% — 16.5%

Non-GAAP operating income

 

$14M$16M

 

$59M$65M

Non-GAAP operating income margins

 

12.4% — 13.7%

 

12.9% — 13.9%

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 & 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 nearly 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 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

 

Six months ended

     

 June 30,

 

 June 30,

     

2022

 

2021

 

2022

 

2021

                   

Revenue

 

$604,250

 

$554,794

 

$1,192,976

 

$1,094,013

                   

Operating Expenses:

               
 

Cost of services

 

463,510

 

400,323

 

910,725

 

788,983

 

Selling, general and administrative

 

66,766

 

61,300

 

131,605

 

114,057

 

Depreciation and amortization

 

26,314

 

24,916

 

52,944

 

45,375

 

Restructuring charges, net

 

2,528

 

1,725

 

3,148

 

2,127

 

Impairment losses

 

9,248

 

700

 

10,360

 

4,217

         Total operating expenses

 

568,366

 

488,964

 

1,108,782

 

954,759

                   

Income From Operations

 

35,884

 

65,830

 

84,194

 

139,254

                   
 

Other income (expense), net

 

188

 

(2,104)

 

(2,118)

 

(4,525)

                   

Income Before Income Taxes

 

36,072

 

63,726

 

82,076

 

134,729

                   
 

Provision for income taxes

 

(7,274)

 

(11,353)

 

(15,308)

 

(27,332)

                   

Net Income

 

28,798

 

52,373

 

66,768

 

107,397

                   
 

Net income attributable to noncontrolling interest

 

(3,564)

 

(5,004)

 

(8,130)

 

(9,610)

                   

Net Income Attributable to TTEC Stockholders

 

$  25,234

 

$  47,369

 

$     58,638

 

$     97,787

                   
                   

Net Income Per Share

               
                   
 

Basic

 

$     0.61

 

$     1.12

 

$        1.42

 

$        2.30

                   
 

Diluted

 

$     0.61

 

$     1.10

 

$        1.41

 

$        2.27

                   

Net Income Per Share Attributable to TTEC Stockholders

               
                   
 

Basic

 

$     0.54

 

$     1.01

 

$        1.25

 

$        2.09

                   
 

Diluted

 

$     0.53

 

$     1.00

 

$        1.24

 

$        2.06

                   
                   

Income From Operations Margin

 

5.9 %

 

11.9 %

 

7.1 %

 

12.7 %

Net Income Margin

 

4.8 %

 

9.4 %

 

5.6 %

 

9.8 %

Net Income Attributable to TTEC Stockholders Margin

 

4.2 %

 

8.5 %

 

4.9 %

 

8.9 %

Effective Tax Rate

 

20.2 %

 

17.8 %

 

18.7 %

 

20.3 %

                   
                   

Weighted Average Shares Outstanding

               

  Basic

 

47,047

 

46,840

 

47,026

 

46,792

  Diluted

 

47,383

 

47,409

 

47,381

 

47,388

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(In thousands)

(unaudited)

                 
   

Three months ended

 

Six months ended

   

 June 30,

 

 June 30,

   

2022

 

2021

 

2022

 

2021

                 

Revenue:

               

TTEC Digital

 

$116,591

 

$107,995

 

$   230,174

 

$   171,582

TTEC Engage

 

487,659

 

446,799

 

962,802

 

922,431

Total

 

$604,250

 

$554,794

 

$1,192,976

 

$1,094,013

                 

Income From Operations:

               

TTEC Digital

 

$  10,879

 

$    9,565

 

$     17,226

 

$     13,767

TTEC Engage

 

25,005

 

56,265

 

66,968

 

125,487

Total

 

$  35,884

 

$  65,830

 

$     84,194

 

$   139,254

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

         
   

 June 30,

 

 December 31, 

   

2022

 

2021

         

ASSETS

       

Current assets:

       

   Cash and cash equivalents

 

$   163,204

 

$         158,205

   Accounts receivable, net

 

391,587

 

357,310

   Other current assets

 

186,042

 

182,472

      Total current assets

 

740,833

 

697,987

         

Property and equipment, net

 

167,293

 

168,404

Operating lease assets

 

99,731

 

90,180

Goodwill

 

810,929

 

739,481

Other intangibles assets, net

 

252,943

 

212,349

Other assets

 

93,464

 

88,403

         

Total assets

 

$2,165,193

 

$      1,996,804

         

LIABILITIES AND EQUITY

       

Current liabilities:

       

   Accounts payable

 

$     98,241

 

$           70,415

   Accrued employee compensation and benefits

 

148,432

 

156,324

   Deferred revenue

 

97,740

 

95,608

   Current operating lease liabilities

 

43,721

 

44,460

   Other current liabilities

 

73,230

 

77,589

      Total current liabilities

 

461,364

 

444,396

         

Long-term liabilities:

       

   Line of credit

 

930,000

 

791,000

   Non-current operating lease liabilities

 

72,288

 

64,419

   Other long-term liabilities

 

94,750

 

102,648

      Total long-term liabilities

 

1,097,038

 

958,067

         

Redeemable noncontrolling interest

 

55,752

 

56,316

         

Equity:

       

   Common stock

 

471

 

470

   Additional Paid in Capital

 

364,251

 

361,135

   Treasury stock

 

(595,331)

 

(597,031)

   Accumulated other comprehensive income (loss)

 

(125,450)

 

(98,426)

   Retained earnings

 

891,185

 

856,065

   Noncontrolling interest

 

15,913

 

15,812

      Total equity

 

551,039

 

538,025

         

Total liabilities and equity

 

$2,165,193

 

$      1,996,804

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

       
 

 Six Months Ended 

 

 Six Months Ended 

 

  June 30

 

  June 30

 

2022

 

2021

       

Cash flows from operating activities:

     

     Net income

$                 66,768

 

$               107,397

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

     

          Depreciation and amortization

52,944

 

45,376

          Amortization of contract acquisition costs

1,063

 

350

          Amortization of debt issuance costs

500

 

447

          Imputed interest expense and fair value adjustments to contingent consideration

-

 

1,046

          Provision for credit losses

198

 

155

          Loss on disposal of assets

1,116

 

386

          Impairment losses

10,360

 

4,217

          Deferred income taxes

(9,161)

 

(5,522)

          Excess tax benefit from equity-based awards

(913)

 

(3,340)

          Equity-based compensation expense

7,882

 

7,399

          Loss / (gain) on foreign currency derivatives

224

 

21

          Changes in assets and liabilities, net of acquisitions:

     

                Accounts receivable 

(38,271)

 

48,515

                Prepaids and other assets 

35,866

 

3,175

                Accounts payable and accrued expenses 

21,041

 

(18,062)

                Deferred revenue and other liabilities 

(58,345)

 

(58,721)

                    Net cash provided by operating activities

91,272

 

132,839

       

Cash flows from investing activities:

     

     Proceeds from sale of property, plant and equipment

102

 

29

     Purchases of property, plant and equipment

(35,790)

 

(23,593)

     Acquisitions

(142,420)

 

(481,718)

          Net cash used in investing activities

(178,108)

 

(505,282)

       

Cash flows from financing activities:

     

     Net proceeds / (borrowings) from line of credit

139,000

 

449,000

     Payments on other debt

(1,877)

 

(3,522)

     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

(7,219)

 

(5,589)

     Tax payments related to the issuance of restricted stock units

(3,065)

 

(6,680)

     Payments of debt issuance costs

-

 

(1,102)

          Net cash used in financing activities

93,721

 

400,458

       

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

(12,350)

 

(1,930)

       

Increase in cash, cash equivalents and restricted cash

(5,465)

 

26,085

Cash, cash equivalents and restricted cash, beginning of period

180,682

 

159,015

Cash, cash equivalents and restricted cash, end of period

$               175,217

 

$               185,100

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

(In thousands, except per share data)

                             
   

Three months ended

       

Six months ended

     
   

 June 30,

       

 June 30,

     
   

2022

 

2021

       

2022

 

2021

     
                             

Revenue

 

$604,250

 

$554,794

       

$1,192,976

 

$1,094,013

     
                             
                             

Reconciliation of Adjusted EBITDA:

                           
                             

Net Income

 

$  28,798

 

$  52,373

       

$     66,768

 

$   107,397

     

   Interest income

 

(271)

 

(230)

       

(471)

 

(409)

     

   Interest expense

 

6,194

 

3,381

       

9,960

 

5,183

     

   Provision for income taxes

 

7,274

 

11,353

       

15,308

 

27,332

     

   Depreciation and amortization

 

26,314

 

24,916

       

52,944

 

45,375

     

   Asset impairment and restructuring charges

 

11,776

 

2,425

       

13,508

 

6,344

     

   Changes in acquisition contingent consideration

 

-

 

169

       

-

 

1,046

     

   Grant income for pandemic relief

 

-

 

(2,012)

       

-

 

(8,044)

     

   Cybersecurity incident related impact, net of insurance recovery

 

(167)

 

-

       

3,669

 

-

     

   Equity-based compensation expenses

 

4,143

 

3,371

       

7,882

 

7,399

     
                             

 Adjusted EBITDA

 

$  84,061

 

$  95,746

       

$   169,568

 

$   191,623

     
                             

 Adjusted EBITDA Margin

 

13.9 %

 

17.3 %

       

14.2 %

 

17.5 %

     
                             
                             

Reconciliation of Free Cash Flow:

                           
                             

Cash Flow From Operating Activities:

                           

   Net income

 

$  28,798

 

$  52,373

       

$     66,768

 

$   107,397

     

   Adjustments to reconcile net income to net cash

                           

       provided by operating activities:

                           

          Depreciation and amortization

 

26,314

 

24,916

       

52,944

 

45,375

     

          Other

 

22,474

 

(14,237)

       

(28,440)

 

(19,933)

     

   Net cash provided by operating activities

 

77,586

 

63,052

       

91,272

 

132,839

     
                             

Less - Total Cash Capital Expenditures

 

19,099

 

12,028

       

35,790

 

23,593

     
                             

Free Cash Flow

 

$  58,487

 

$  51,024

       

$     55,482

 

$   109,246

     
                             
                             

Reconciliation of Non-GAAP Income from Operations:

                           
                             

Income from Operations

 

$  35,884

 

$  65,830

       

$     84,194

 

$   139,254

     

Restructuring charges, net

 

2,528

 

1,725

       

3,148

 

2,127

     

Impairment losses

 

9,248

 

700

       

10,360

 

4,217

     

Grant income for pandemic relief

 

-

 

(2,012)

       

-

 

(8,044)

     

Cybersecurity incident related impact, net of insurance recovery

 

(167)

 

-

       

3,669

 

-

     

Equity-based compensation expenses

 

4,143

 

3,371

       

7,882

 

7,399

     

Amortization of purchased intangibles 

 

9,554

 

8,968

       

19,090

 

13,483

     
                             

Non-GAAP Income from Operations

 

$  61,190

 

$  78,582

       

$   128,343

 

$   158,436

     
                             

Non-GAAP Income from Operations Margin

 

10.1 %

 

14.2 %

       

10.8 %

 

14.5 %

     
                             
                             

Reconciliation of Non-GAAP EPS:

                           
                             

Net Income

 

$  28,798

 

$  52,373

       

$     66,768

 

$   107,397

     

Add:  Asset  impairment and restructuring charges

 

11,776

 

2,425

       

13,508

 

6,344

     

Add:  Equity-based compensation expenses

 

4,143

 

3,371

       

7,882

 

7,399

     

Add:  Amortization of purchased intangibles

 

9,554

 

8,968

       

19,090

 

13,483

     

Add:  Cybersecurity incident related impact, net of insurance recovery

 

(167)

 

-

       

3,669

 

-

     

Less:  Changes in acquisition contingent consideration

 

-

 

169

       

-

 

1,046

     

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

 

(7,671)

 

(5,072)

       

(13,525)

 

(7,677)

     
                             

 Non-GAAP Net Income

 

$  46,433

 

$  60,222

       

$     97,392

 

$   119,948

     
                             

    Diluted shares outstanding

 

47,383

 

47,409

       

47,381

 

47,388

     
                             

 Non-GAAP EPS

 

$0.98

 

$1.27

       

$2.06

 

$2.53

     
                             
                             
                             

Reconciliation of Non-GAAP Income from Operations by Segment :

TTEC Engage

 

TTEC Digital

 

TTEC Engage

 

TTEC Digital

   

Q2 22

 

Q2 21

 

Q2 22

Q2 21

 

YTD 22

 

YTD 21

 

YTD 22

YTD 21

                             

Income from Operations

 

$  25,005

 

$  56,265

 

$   10,879

$     9,565

 

$     66,968

 

$   125,487

 

$   17,226

$   13,768

Restructuring charges, net

 

2,415

 

866

 

113

859

 

3,035

 

1,259

 

113

867

Impairment losses

 

9,248

 

700

 

-

-

 

10,360

 

4,217

 

-

-

Grant income for pandemic relief

 

-

 

(1,906)

 

-

(106)

 

-

 

(7,938)

 

-

(106)

Cybersecurity incident related impact, net of insurance recovery

 

(167)

 

-

 

-

-

 

3,669

 

-

 

-

-

Equity-based compensation expenses

 

2,810

 

2,292

 

1,333

1,079

 

5,239

 

5,033

 

2,643

2,366

Amortization of purchased intangibles 

 

4,784

 

3,305

 

4,770

5,663

 

7,999

 

6,614

 

11,091

6,869

                             

Non-GAAP Income from Operations

 

$  44,095

 

$  61,522

 

$   17,095

$   17,060

 

$     97,270

 

$   134,672

 

$   31,073

$   23,764

                             
                             

Reconciliation of Adjusted EBITDA by Segment :

 

TTEC Engage

 

TTEC Digital

 

TTEC Engage

 

TTEC Digital

   

Q2 22

 

Q2 21

 

Q2 22

Q2 21

 

YTD 22

 

YTD 21

 

YTD 22

YTD 21

                             

Earnings before Income Taxes

 

$  24,814

 

$  54,156

 

$   11,258

$     9,569

 

$     64,498

 

$   120,918

 

$   17,578

$   13,810

   Interest income / expense, net

 

5,968

 

3,186

 

(45)

(33)

 

9,565

 

4,848

 

(76)

(72)

   Depreciation and amortization

 

18,480

 

16,427

 

7,834

8,489

 

35,698

 

32,999

 

17,246

12,376

   Asset impairment and restructuring charges

 

11,663

 

1,566

 

113

859

 

13,395

 

5,476

 

113

867

   Grant income for pandemic relief

 

-

 

(1,906)

 

-

(106)

 

-

 

(7,938)

 

-

(106)

   Changes in acquisition contingent consideration

 

-

 

169

 

-

-

 

-

 

1,046

 

-

-

   Cybersecurity incident related impact, net of insurance recovery

 

(167)

 

-

 

-

-

 

3,669

 

-

 

-

-

   Equity-based compensation expenses

 

2,810

 

2,291

 

1,333

1,079

 

5,239

 

5,033

 

2,643

2,366

                             

 Adjusted EBITDA

 

$  63,568

 

$  75,889

 

$   20,493

$   19,857

 

$   132,064