DENVER, Nov. 7, 2018 /PRNewswire/ -- TTEC Holdings,
Inc. (NASDAQ: TTEC), a leading global customer experience technology and services company focused on the design,
implementation and delivery of transformative solutions for many of the world's most iconic and disruptive brands, today
announced financial results for the third quarter ended September 30, 2018.
"Since the company's founding over 36 years ago our strategy has been consistent, to grow our top and bottom line, and
increase shareholder value by building enduring client relationships that deliver exceptional customer experiences. To accomplish
this, we are deliberately investing in continuous innovation and transformational change," said Ken
Tuchman, chairman and chief executive officer.
"We are executing upon a rapidly growing pipeline across the business with another record quarter of bookings in the third
quarter of 2018, increasing 34 percent to $153 million over the same period last year. Our sales
momentum is demonstrating how TTEC's offerings are resonating in an ever-expanding customer experience market. Our third quarter
revenue of $364.9 million also included a record $50 million
contribution from our Customer Technology Services segment, up 45 percent over the prior year, and propelled by a 76 percent
year-over-year growth rate in our SaaS-based cloud offering."
"Each of our Customer Strategy, Customer Technology and Customer Growth segments is reaching our strategic financial targets.
In addition, we have made progress with our clients in addressing frontline wages in our Customer Management Services' North
American business, including several meaningful price increases. We expect improved financial performance in 2019," continued
Tuchman.
THIRD QUARTER 2018 FINANCIAL HIGHLIGHTS
Revenue
- Third quarter 2018 GAAP revenue increased 1.6 percent to $364.9 million compared to
$359.0 million in the prior year period.
- Non-GAAP AHFS/WD revenue increased 2.0 percent to $363.0 million over the prior year
period.
- ASC 606 and foreign exchange had a $10.1 million and $6.1
million negative impact, respectively, on revenue in the third quarter 2018.
Income from Operations
- Third quarter 2018 GAAP income from operations was $14.7 million, or 4.0 percent of revenue,
compared to $15.8 million, or 4.4 percent of revenue in the third quarter 2017.
- Non-GAAP AHFS/WD income from operations, excluding $2.7 million in restructuring, was
$17.4 million or 4.8 percent of adjusted revenue versus 6.4 percent in the prior year.
- ASC 606 and foreign exchange had a $4.1 million negative and $1.1
million positive impact, respectively, on income from operations in the third quarter 2018.
Adjusted EBITDA
- Non-GAAP Adjusted EBITDA was $38.2 million, or 10.5 percent of revenue, compared to
$43.0 million, or 12.0 percent of revenue in the third quarter 2017.
- ASC 606 and foreign exchange had a $4.1 million negative and $0.7
million positive impact, respectively, on Adjusted EBITDA in the third quarter 2018.
Earnings Per Share
- Third quarter 2018 GAAP fully diluted earnings per share attributable to TTEC shareholders was $0.12 compared to $0.32 in the same period last year.
- Non-GAAP fully diluted earnings per share was $0.22 compared to $0.35 in the prior year.
- ASC 606 and foreign exchange had a $0.06 negative and $0.02
positive impact, respectively on earnings per in the third quarter 2018.
Bookings
- During the third quarter 2018, TTEC signed an estimated $153 million in annualized contract
value from new and expanded client relationships. The third quarter bookings mix was diversified across segments, verticals,
and geographies.
GAAP metrics are presented in accordance with Generally Accepted Accounting Principles, including the
impact from TTEC's January 1, 2018 adoption of Accounting Standards Codification (ASC) 606 "Revenue from Contracts with
Customers" using the modified retrospective method.
Non-GAAP AHFS/WD (excluding assets held for sale and wind-down) - As reflected in the attached reconciliation table,
the definition of Non-GAAP AHFS/WD excludes from revenue and operating income (i) assets held for sale and wind-down, and
(ii) impairment, restructuring and integration charges.
Non-GAAP Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) – As reflected in the attached
reconciliation table.
STRONG BALANCE SHEET CONTINUES TO FUND OPERATIONS, DIVIDENDS, AND INVESTMENTS
- As of September 30, 2018, TTEC had cash and cash equivalents of $93.9
million and debt of $296.2 million, resulting in a net debt position of $202.3 million. This compares to a net debt position of $192.0 million in the
prior year period.
- As of September 30, 2018, TTEC had approximately $405 million
of additional borrowing capacity available under its revolving credit facility versus $390
million in the prior year period.
- Cash flow from operations in the third quarter 2018 was $61.4 million compared to
$24.2 million in the third quarter 2017.
- Capital expenditures in the third quarter 2018 were $15.0 million compared to $14.3 million in the third quarter 2017.
- In September 2018, the Board of Directors authorized a semi-annual dividend in the amount of
$12.9 million, or 28-cents per share. The dividend was paid on
October 19, 2018 to shareholders of record as of October 9, 2018.
The authorized and paid dividend represented a 3.7 percent increase over the most recent distribution in April 2018 and a 12.0 percent increase over the distribution paid in October
2017.
SEGMENT REPORTING & COMMENTARY
TTEC reports financial results for the following four business segments: Customer Management Services (CMS), Customer Growth
Services (CGS), Customer Technology Services (CTS) and Customer Strategy Services (CSS). Financial highlights for the
segments are provided below.
Customer Management Services (CMS) – Customer Experience Delivery Solutions
- CMS third quarter 2018 GAAP revenue decreased 5.4 percent to $262.4 million compared to
$277.4 million in the year ago quarter. Income from operations was $3.6
million or 1.4 percent of revenue compared to $9.1 million or 3.3 percent of revenue in
the prior year.
- Non-GAAP income from operations was $6.2 million or 2.4 percent of revenue. This compares to
$15.1 million or 5.4 percent of revenue in the prior year.
- ASC 606 had a $10.1 million and $4.1 million negative impact on
revenue and income from operations, respectively.
Customer Growth Services (CGS) – Digitally-Enabled Revenue Growth Solutions
- CGS third quarter 2018 GAAP revenue increased 16.4 percent to $35.9 million compared to
$30.8 million in the year ago quarter. Income from operations was $2.5
million or 7.1 percent of revenue compared to $1.6 million or 5.1 percent of revenue in
the prior year.
- Non-GAAP AHFS/WD revenue increased 21.3 percent to $35.9 million over the year ago period and
income from operations was $2.7 million or 7.4 percent of adjusted revenue. This compares to
$1.7 million or 5.9 percent of adjusted revenue in the prior year.
Customer Technology Services (CTS) – Hosted and Managed Technology Solutions
- CTS third quarter 2018 GAAP revenue increased 44.6 percent to $50.0 million compared to
$34.6 million in the year ago quarter. Income from operations was $6.8
million or 13.6 percent of revenue compared to $4.2 million or 12.0 percent of revenue in
the prior year.
- Non-GAAP AHFS/WD revenue increased 44.6 percent to $50.0 million over the year ago period and
income from operations was $6.8 million or 13.6 percent of adjusted revenue. This compares to
$4.2 million or 12.1 percent of adjusted revenue in the prior year.
Customer Strategy Services (CSS) – Customer Experience Strategy and Data Analytics Solutions
- CSS third quarter 2018 GAAP revenue increased 2.7 percent to $16.7 million from $16.3 million in the year ago quarter. Income from operations was $1.7 million
or 10.1 percent of revenue compared to $0.9 million or 5.8 percent of revenue in the prior
year.
- Non-GAAP AHFS/WD revenue increased 2.5 percent to $14.8 million over the year ago period and
income from operations was $1.7 million or 11.7 percent of adjusted revenue. This compares to
operating income of $1.8 million or 12.4 percent of revenue in the prior year.
BUSINESS OUTLOOK
"Our strategy to differentiate our solutions portfolio and improve our go-to-market platform is a catalyst for anticipated
renewed organic growth in 2019," commented Regina Paolillo, chief financial and administrative
officer. "Market demand for our integrated suite of customer engagement offerings is accelerating with record level bookings in
the second and third quarters of 2018, and continued strong bookings expected in the fourth quarter. We are especially pleased
with the composition of new business signings in both our Customer Technology Services segment, driven by rapid adoption of our
SaaS-based cloud platform and systems integration services, and our Customer Management Services segment."
"We are also pleased with the sequential improvement in our third quarter revenue and operating income, with significant
overperformance in our Customer Technology Services segment. As we approach year end, we are keenly focused on delivering
performance in line with the guidance provided during our second quarter earnings call, maximizing our seasonal peak
fourth-quarter volumes, remediating the challenges impacting our Customer Management Services segment, and executing upon the
conversion of our growing pipeline and bookings. We are setting up well for 2019 and anticipate full year higher operating income
margins on renewed organic revenue growth," continued Paolillo.
About TTEC
TTEC Holdings, Inc. (NASDAQ: TTEC) is a leading global customer experience technology and services company focused on the
design, implementation and delivery of transformative customer experience for many of the world's most iconic and disruptive
brands. The Company delivers outcome-based customer engagement solutions through TTEC Digital, its digital consultancy that
designs and builds human centric, tech-enabled, insight-driven customer experience solutions for clients and TTEC Engage, its
delivery center of excellence, that operates customer acquisition, care, growth and digital trust and safety services. Founded in
1982, the Company's 49,700 employees operate on six continents across the globe and live by a set of customer-focused values that
guide relationships with clients, their customers, and each other. To learn more about how TTEC is bringing humanity to the
customer experience, visit www.ttec.com.
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.
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 Holding, Inc.'s management and are subject to
significant risks and uncertainties. Actual results may differ from what is expressed in the forward-looking statements. Factors
that could cause TTEC's results to differ materially from those described in the forward-looking statements can be found in
TTEC's Annual Report on Form 10-K for the year ended December 31, 2017, which has been filed 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. TTEC Holdings, Inc. does not undertake to update any forward-looking statements.
|
Investor Relations Contact
Paul Miller
+1.303.397.8641
|
Public Relations Contact
Olivia Griner
+1.303.397.8999
|
Address
9197 South Peoria Street
Englewood, CO 80112
|
Contact
ttec.com
+1.800.835.3832
|
|
TTEC HOLDINGS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$364,936
|
|
$359,036
|
|
$1,090,038
|
|
$1,050,742
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
Cost of services
|
|
286,925
|
|
275,548
|
|
844,555
|
|
797,450
|
|
Selling, general and administrative
|
|
43,321
|
|
45,167
|
|
134,611
|
|
132,372
|
|
Depreciation and amortization
|
|
17,317
|
|
16,515
|
|
52,052
|
|
47,273
|
|
Restructuring and integration charges, net
|
2,716
|
|
6,006
|
|
4,599
|
|
9,768
|
|
Impairment losses
|
|
-
|
|
-
|
|
1,120
|
|
-
|
|
Total
operating expenses
|
|
350,279
|
|
343,236
|
|
1,036,937
|
|
986,863
|
|
|
|
|
|
|
|
|
|
|
|
Income From Operations
|
|
14,657
|
|
15,800
|
|
53,101
|
|
63,879
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
(6,020)
|
|
1,846
|
|
(29,480)
|
|
(3,284)
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes
|
|
8,637
|
|
17,646
|
|
23,621
|
|
60,595
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
(1,893)
|
|
(2,071)
|
|
(4,648)
|
|
(9,059)
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
6,744
|
|
15,575
|
|
18,973
|
|
51,536
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interest
|
(1,369)
|
|
(806)
|
|
(3,489)
|
|
(2,828)
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to TTEC Stockholders
|
$ 5,375
|
|
$ 14,769
|
|
$ 15,484
|
|
$ 48,708
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share Attributable to TTEC Stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 0.12
|
|
$ 0.32
|
|
$ 0.34
|
|
$ 1.06
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$ 0.12
|
|
$ 0.32
|
|
$ 0.33
|
|
$ 1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income From Operations Margin
|
|
4.0%
|
|
4.4%
|
|
4.9%
|
|
6.1%
|
|
Net Income Attributable to TTEC Stockholders Margin
|
1.5%
|
|
4.1%
|
|
1.4%
|
|
4.6%
|
|
Effective Tax Rate
|
|
21.9%
|
|
11.7%
|
|
19.7%
|
|
15.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
46,172
|
|
45,838
|
|
46,021
|
|
45,816
|
|
Diluted
|
|
46,316
|
|
46,367
|
|
46,390
|
|
46,348
|
|
TTEC HOLDINGS, INC. AND SUBSIDIARIES
|
|
SEGMENT INFORMATION
|
|
(In thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Customer Management Services
|
|
$262,360
|
|
$277,373
|
|
$ 817,214
|
|
$ 798,508
|
|
Customer Growth Services
|
|
35,897
|
|
30,829
|
|
103,577
|
|
96,890
|
|
Customer Technology Services
|
|
49,967
|
|
34,563
|
|
118,991
|
|
105,054
|
|
Customer Strategy Services
|
|
16,712
|
|
16,271
|
|
50,256
|
|
50,290
|
|
Total
|
|
$364,936
|
|
$359,036
|
|
$1,090,038
|
|
$1,050,742
|
|
|
|
|
|
|
|
|
|
|
Income From Operations:
|
|
|
|
|
|
|
|
|
|
Customer Management Services
|
|
$ 3,639
|
|
$ 9,133
|
|
$ 25,627
|
|
$ 43,804
|
|
Customer Growth Services
|
|
2,549
|
|
1,564
|
|
6,895
|
|
6,295
|
|
Customer Technology Services
|
|
6,778
|
|
4,158
|
|
17,188
|
|
11,034
|
|
Customer Strategy Services
|
|
1,691
|
|
945
|
|
3,391
|
|
2,746
|
|
Total
|
|
$ 14,657
|
|
$ 15,800
|
|
$ 53,101
|
|
$ 63,879
|
|
TTEC HOLDINGS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(In thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ 93,879
|
|
$ 74,437
|
|
Accounts receivable, net
|
|
301,770
|
|
385,751
|
|
Other current assets
|
|
99,501
|
|
74,767
|
|
Assets held for sale
|
|
7,822
|
|
7,835
|
|
Total current assets
|
|
502,972
|
|
542,790
|
|
|
|
|
|
|
Property and equipment, net
|
|
161,244
|
|
163,297
|
|
Other assets
|
|
374,390
|
|
372,649
|
|
|
|
|
|
|
Total assets
|
|
$ 1,038,606
|
|
$ 1,078,736
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Total current liabilities
|
|
$ 239,424
|
|
$ 200,456
|
|
Liabilities held for sale
|
|
3,546
|
|
1,322
|
|
Other long-term liabilities
|
|
466,778
|
|
514,113
|
|
Total equity
|
|
328,858
|
|
362,845
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$ 1,038,606
|
|
$ 1,078,736
|
|
TTEC HOLDINGS, INC. AND SUBSIDIARIES
|
|
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
|
|
(In thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
**
|
$ 6,744
|
|
$ 15,575
|
|
$ 18,973
|
|
$ 51,536
|
|
Interest income
|
|
(1,401)
|
|
(899)
|
|
(3,940)
|
|
(2,020)
|
|
Interest expense
|
|
8,410
|
|
3,469
|
|
22,634
|
|
8,699
|
|
Provision for income taxes
|
|
1,893
|
|
2,071
|
|
4,648
|
|
9,059
|
|
Depreciation and amortization
|
|
17,317
|
|
16,515
|
|
52,052
|
|
47,273
|
|
Asset impairment, restructuring and integration
charges
|
|
2,716
|
|
6,006
|
|
5,719
|
|
9,768
|
|
Impairment of equity investment
|
|
-
|
|
-
|
|
15,632
|
|
-
|
|
Gain on dissolution of a foreign subsidiary
|
|
-
|
|
(3,160)
|
|
-
|
|
(3,160)
|
|
Gain on sale of business unit
|
|
(588)
|
|
(141)
|
|
(1,653)
|
|
(171)
|
|
Estimated loss of assets held for sale
|
|
-
|
|
-
|
|
2,000
|
|
3,178
|
|
Gain on bargain purchase of acquisition
|
|
-
|
|
-
|
|
(685)
|
|
-
|
|
Equity-based compensation expenses
|
|
3,109
|
|
3,522
|
|
9,292
|
|
8,358
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$ 38,200
|
|
$ 42,958
|
|
$ 124,672
|
|
$ 132,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow From Operating Activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
**
|
$ 6,744
|
|
$ 15,575
|
|
$ 18,973
|
|
$ 51,536
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
17,317
|
|
16,515
|
|
52,052
|
|
47,273
|
|
Other
|
|
37,342
|
|
(7,902)
|
|
95,084
|
|
50,834
|
|
Net cash provided by operating activities
|
|
61,403
|
|
24,188
|
|
166,109
|
|
149,643
|
|
|
|
|
|
|
|
|
|
|
Less - Total Capital Expenditures
|
|
14,958
|
|
14,343
|
|
31,841
|
|
43,932
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
$ 46,445
|
|
$ 9,845
|
|
$ 134,268
|
|
$ 105,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Income from Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Operations
|
**
|
$ 14,657
|
|
$ 15,800
|
|
$ 53,101
|
|
$ 63,879
|
|
Restructuring and integration charges, net
|
|
2,716
|
|
6,006
|
|
4,599
|
|
9,768
|
|
Impairment losses
|
|
-
|
|
-
|
|
1,120
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Income from Operations
|
|
$ 17,373
|
|
$ 21,806
|
|
$ 58,820
|
|
$ 73,647
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Income from Operations Margin
|
|
4.8%
|
|
6.1%
|
|
5.4%
|
|
7.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
**
|
$ 6,744
|
|
$ 15,575
|
|
$ 18,973
|
|
$ 51,536
|
|
Add: Asset impairment, restructuring and integration charges, net of
related taxes
|
|
1,988
|
|
3,620
|
|
4,152
|
|
5,903
|
|
Add: Estimated loss on assets held for sale, net of related
taxes
|
|
-
|
|
-
|
|
2,000
|
|
1,907
|
|
Add: Interest charge related to future purchase of remaining 30% for
Motif acquistiion
|
|
3,002
|
|
-
|
|
7,989
|
|
-
|
|
Add: Impairment of equity investment, net of related taxes
|
|
-
|
|
-
|
|
11,411
|
|
-
|
|
Less: Gain on dissolution of foreign subsidiary, net of related
taxes
|
|
-
|
|
(1,891)
|
|
-
|
|
(1,891)
|
|
Less: Gain on sale of business unit
|
|
(429)
|
|
(85)
|
|
(1,207)
|
|
(103)
|
|
Less: Gain on bargain purchase of acquisition
|
|
-
|
|
-
|
|
(500)
|
|
-
|
|
Add: Changes in valuation allowance, returns to provision adjustments
and other
|
|
(1,231)
|
|
(801)
|
|
(2,989)
|
|
(2,200)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income
|
|
$ 10,074
|
|
$ 16,418
|
|
$ 39,829
|
|
$ 55,152
|
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding
|
|
46,316
|
|
46,367
|
|
46,390
|
|
46,348
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP EPS
|
|
$0.22
|
|
$0.35
|
|
$0.86
|
|
$1.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** The numbers above include the adoption of ASC 606 and include the
following third quarter and YTD 2018 amounts :
|
|
Third Quarter
2018 Revenue : ( $10.1) million, YTD 2018 Revenue : + $4.8 million
|
|
Third Quarter
2018 Operating Income : ( $4.1) million, YTD 2018 Operating Income : + $3.8
million
|
|
Third Quarter
2018 Net Income : ( $2.9) million, YTD 2018 Net Income : + $2.8 million
|
|
Non-GAAP AHFS/WD Reconciliation (Excluding Assets Held For Sale and
Wind-down) & Year-over-Year (YoY) Growth Rate Comparison
|
|
U.S. Dollars in Thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD QUARTER
|
|
|
|
|
|
|
|
|
|
|
|
|
(three months end, September 30, 2018)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
TTEC Digital
|
GAAP Revenue
|
Revenue Contribution from AHFS/WD
|
Non-GAAP Revenue (excluding AHFS/WD)
|
|
TTEC Digital
|
GAAP Operating Income
|
Non-GAAP Operating Income Adjustments
|
Non-GAAP Operating Income
|
Non-GAAP Operating Income Contribution from AHFS/WD
|
Non-GAAP Operating Income (excluding AHFS/WD)
|
|
CTS
|
|
$ 49,967
|
$ -
|
$ 49,967
|
|
CTS
|
|
$ 6,778
|
$ -
|
$ 6,778
|
$
3
|
$ 6,775
|
|
YoY Growth Rate:
|
44.6%
|
|
44.6%
|
|
|
Operating Margin:
|
13.6%
|
|
13.6%
|
|
13.6%
|
|
CSS
|
|
$ 16,712
|
$ 1,917
|
$ 14,795
|
|
CSS
|
|
$ 1,691
|
$ 82
|
$ 1,773
|
$
42
|
$ 1,731
|
|
YoY Growth Rate:
|
2.7%
|
|
2.5%
|
|
|
Operating Margin:
|
10.1%
|
|
10.6%
|
|
11.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TTEC Engage
|
|
|
|
|
|
TTEC Engage
|
|
|
|
|
|
|
CMS
|
|
$ 262,360
|
$ -
|
$ 262,360
|
|
CMS
|
|
$ 3,639
|
$ 2,559
|
$ 6,198
|
$
-
|
$ 6,198
|
|
YoY Growth Rate:
|
-5.4%
|
|
-5.4%
|
|
|
Operating Margin:
|
1.4%
|
|
2.4%
|
|
2.4%
|
|
CGS
|
|
$ 35,897
|
$ -
|
$ 35,897
|
|
CGS
|
|
$ 2,549
|
$ 75
|
$ 2,624
|
$
(27)
|
$ 2,651
|
|
YoY Growth Rate:
|
16.4%
|
|
21.3%
|
|
|
Operating Margin:
|
7.1%
|
|
7.3%
|
|
7.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company (Consolidated)
|
$ 364,936
|
$ 1,917
|
$ 363,019
|
|
Company
|
$ 14,657
|
$ 2,716
|
$ 17,373
|
$
18
|
$ 17,355
|
|
YoY Growth Rate:
|
1.6%
|
|
2.0%
|
|
|
Operating Margin:
|
4.0%
|
|
4.8%
|
|
4.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segments Defined: CMS (Customer Management Services), CGS (Customer
Growth Services), CTS (Customer Technology Services), CSS (Customer Strategy Services)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP AHFS/WD Defined: Excludes from revenue and operating income
i) assets held for sale and wind-down, and ii) impairment, restructuring and integration charges.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP AHFS/WD Reconciliation (Excluding Assets Held For Sale and
Wind-down) & Year-over-Year (YoY) Growth Rate Comparison
|
|
|
U.S. Dollars in Thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NINE MONTHS
|
|
|
|
|
|
|
|
|
|
|
|
|
(nine months end, September 30, 2018)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
TTEC Digital
|
GAAP Revenue
|
Revenue Contribution from AHFS/WD
|
Non-GAAP Revenue (excluding AHFS/WD)
|
|
TTEC Digital
|
GAAP Operating Income
|
Non-GAAP Operating Income Adjustments
|
Non-GAAP Operating Income
|
Non-GAAP Operating Income Contribution from AHFS/WD
|
Non-GAAP Operating Income (excluding AHFS/WD)
|
|
CTS
|
|
$ 11,991
|
$ -
|
$ 118,991
|
|
CTS
|
|
$ 17,188
|
$ -
|
$ 17,188
|
$
(19)
|
$ 17,207
|
|
YoY Growth Rate:
|
13.3%
|
|
21.1%
|
|
|
Operating Margin:
|
14.4%
|
|
14.4%
|
|
14.5%
|
|
CSS
|
|
$ 50,256
|
$ 7,522
|
$ 42,734
|
|
CSS
|
|
$ 3,391
|
$ 133
|
$ 3,524
|
$ (1,206)
|
$ 4,730
|
|
YoY Growth Rate:
|
-0.1%
|
|
-2.8%
|
|
|
Operating Margin:
|
6.7%
|
|
7.0%
|
|
11.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TTEC Engage
|
|
|
|
|
TTEC Engage
|
|
|
|
|
|
|
CMS
|
|
$ 817,214
|
$ -
|
$ 817,214
|
|
CMS
|
|
$ 25,627
|
$ 4,870
|
$ 30,497
|
$
-
|
$ 30,497
|
|
YoY Growth Rate:
|
2.3%
|
|
2.3%
|
|
|
Operating Margin:
|
3.1%
|
|
3.7%
|
|
3.7%
|
|
CGS
|
|
$ 103,577
|
$ 1
|
$ 103,576
|
|
CGS
|
|
$ 6,895
|
$ 716
|
$ 7,611
|
$
(37)
|
$ 7,648
|
|
YoY Growth Rate:
|
6.9%
|
|
10.9%
|
|
|
Operating Margin:
|
6.7%
|
|
7.3%
|
|
7.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company (Consolidated)
|
$ 1,090,038
|
$ 7,523
|
$ 1,082,515
|
|
Company
|
$ 53,101
|
$ 5,719
|
$ 58,820
|
$ (1,262)
|
$ 60,082
|
|
YoY Growth Rate:
|
3.7%
|
|
4.7%
|
|
|
Operating Margin:
|
4.9%
|
|
5.4%
|
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segments Defined: CMS (Customer Management Services), CGS (Customer
Growth Services), CTS (Customer Technology Services), CSS (Customer Strategy Services)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP AHFS/WD Defined: Excludes from revenue and operating income
i) assets held for sale and wind-down, and ii) impairment, restructuring and integration charges.
|
View original content to download multimedia:http://www.prnewswire.com/news-releases/ttec-announces-third-quarter-2018-financial-results-300746041.html
SOURCE TTEC Holdings, Inc.