Le Lézard
Classified in: Science and technology, Business, Covid-19 virus
Subjects: ERN, ERP

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        

Income from Operations

Adjusted EBITDA        

Earnings Per Share

Bookings

STRONG CASH FLOW AND BALANCE SHEET FUND INVESTMENTS AND DIVIDENDS

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

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

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.

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


$   162,382


$   37,504

$   29,241

 

TTEC Logo (PRNewsfoto/TTEC Holdings, Inc.)

 

SOURCE TTEC Holdings, Inc.


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The impact of the pandemic on the Staff Augmentation Services procurement market has been extensively analyzed and data-driven insights have predicted that this market will experience price fluctuations of 3%-5% during the forecast period....

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In November, Padgett, a North American accounting, payroll, tax planning and preparation franchise, hosted their annual FOCUS Tax Seminar for 200+ attendees. Representatives from across the country attended in person and virtually to build community...

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Tribe Property Technologies Inc.   ("Tribe" or the "Company") a leading provider of technology-enabled property management solutions, today announced its financial results for the third quarter and for the nine months ended September 30, 2022....



News published on 9 august 2022 at 16:05 and distributed by: