TTEC TTEC Holdings Inc

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): February 27, 2025

 

TTEC Holdings, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware	001-11919	84-1291044
(State or other jurisdiction	(Commission file	(IRS Employer
of incorporation)	number)	Identification Number)

 

100 Congress Avenue, Suite 1425,  Austin, TX 78701

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: 303-397-8100

 

Not Applicable
(Former name or former address if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock of TTEC Holdings, Inc., $0.01 par value per share	TTEC	NASDAQ

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

Item 2.02 Results of Operations and Financial Condition.

 

On February 27, 2025 TTEC Holdings, Inc. (“TTEC”) issued a press release announcing financial results for its fourth quarter and fiscal year ended December 31, 2024.

 

A copy of the February 27, 2025 press release is attached hereto as Exhibit 99.1 to this current report on Form 8-K and incorporated into this Item 2.02 by reference.

 

The information in this Item 2.02 of Form 8-K and Exhibit 99.1 hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

 

Item 8.01    Other Events.

 

Location of the Principal Place of Business

 

Effective as of this filing, TTEC’s principal executive offices and its principal place of business is 100 Congress Avenue, Suite 1425, Austin, TX 78701.

 

Item 9.01.   Financial Statements and Exhibits

 

(d)  Exhibits.

 

EXHIBIT INDEX

 

Exhibit No.		Description
99.1		Press release announcing financial results fourth quarter and fiscal year ended December 31, 2024
104		Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	TTEC Holdings, Inc.
	(Registrant)
Date: February 27, 2025	By:	/s/ Margaret B. McLean
		Margaret B. McLean
		General Counsel & Chief Risk Officer

 

 

Exhibit 99.1

 

 

TTEC Announces Fourth Quarter and

Full Year 2024 Financial Results

 

Fourth Quarter 2024

Revenue was $567.4 Million, down 9.4 Percent

Net Income was $4.6 Million or 0.8 Percent of Revenue

($9.0 Million or 1.6 Percent of Revenue Non-GAAP)

Adjusted EBITDA was $50.9 Million or 9.0 Percent of Revenue

 

Full Year 2024

Revenue was $2.208 Billion, down 10.4 Percent

Net Loss of $310.6 Million or negative 14.1 Percent of Revenue

(Net Income of $33.6 Million or 1.5 Percent of Revenue Non-GAAP)

Adjusted EBITDA was $202.3 Million or 9.2 Percent of Revenue

 

Provides Outlook for Full Year 2025

 

AUSTIN, February 27, 2025 – 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, 2024.

 

"2024 was a challenging transitional year for TTEC. However, we continued to advance our three top priorities, including enhancing our diversification strategy with an expanded geographic delivery footprint and client portfolio, broadening our end-to-end digital CX value proposition with differentiated, technology-enabled solutions, and achieving our goal of meeting or exceeding our historical growth and margin targets,“ commented Ken Tuchman, chairman and chief executive officer of TTEC.

 

“With our strengthened leadership alongside the actions we have taken in the second half of the year, we are on our way to healthier financial performance in 2025 and beyond,” Tuchman continued.

 

FOURTH QUARTER 2024 FINANCIAL HIGHLIGHTS

 

Revenue

 

	·	Fourth quarter 2024 GAAP revenue was $567.4 million, a 9.4 percent decrease compared to $626.2 million in the prior year.
	·	Foreign exchange had a $2.1 million negative impact on revenue in the fourth quarter of 2024.

 

Income from Operations

 

·

Fourth quarter 2024 GAAP income from operations was $15.3 million, or 2.7 percent of revenue, compared to $16.9 million, or 2.7 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 $34.9 million, or 6.2 percent of revenue, compared to $41.8 million, or 6.7 percent of revenue in the prior year.
	·	Foreign exchange had a $4.4 million positive impact on Non-GAAP income from operations in the fourth quarter 2024.

 

Adjusted EBITDA

 

·

Fourth quarter 2024 Non-GAAP Adjusted EBITDA was $50.9 million, or 9.0 percent of revenue, compared to $57.5 million, or 9.2 percent of revenue in the prior year.

 

Net Income (Loss) Per Share

 

	·	Fourth quarter 2024 GAAP fully diluted net income per share was $0.10 compared to a fully diluted net loss per share of $0.17 in the prior year.
	·	Non-GAAP fully diluted net income per share was $0.19 compared to $0.37 in the prior year.

 

FULL YEAR 2024 FINANCIAL HIGHLIGHTS

 

Revenue

 

	·	Full year 2024 GAAP revenue was $2.208 billion, a 10.4 percent decrease compared to $2.463 billion in the prior year.
	·	Foreign exchange had a $2.6 million negative impact on revenue for the full year 2024.

 

Income (Loss) from Operations

 

	·	Full year 2024 GAAP loss from operations was $173.5 million, or negative 7.9 percent of revenue, compared to income from operations of $118.0 million, or 4.8 percent of revenue in the prior year. The significant decrease in operating income was primarily the result of a second quarter 2024 one-time non-cash pre-tax $196 million impairment charge related to the fair value of the TTEC Engage reporting unit, in addition to other factors.
	·	Non-GAAP income from operations, excluding restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, and other items, was $136.5 million, or 6.2 percent of revenue, compared to $200.4 million, or 8.1 percent in the prior year.
	·	Foreign exchange had a $7.2 million positive impact on Non-GAAP income from operations for the full year 2024.

 

Adjusted EBITDA

 

·

Full year 2024 Non-GAAP Adjusted EBITDA was $202.3 million, or 9.2 percent of revenue, compared to $271.5 million, or 11.0 percent of revenue in the prior year.

 

Net Income (Loss) Per Share

 

	·	Full year 2024 GAAP fully diluted net loss per share was $6.52 compared to net income per share of $0.39 in the prior year.
	·	Non-GAAP fully diluted net income per share was $0.71 compared to $2.18 in the prior year.

 

 

 

 

CASH FLOW AND BALANCE SHEET

 

	·	Cash flow from operations in the fourth quarter of 2024 was a negative $1.1 million compared to a positive $31.5 million for the fourth quarter 2023. For the full year 2024, cash flow from operations was a negative $58.8 million compared to a positive $144.8 million for the same period 2023. The decline in 2024 cash flow from operations was primarily related to the discontinuation of the accounts receivable factoring facility in the third quarter, negatively impacting our cash flow by $101.2 million. Excluding the factoring facility impact, 2024 cash flow from operations was a positive $42.4 million.
	·	Free cash flow in the fourth quarter of 2024 was a negative $9.8 million compared to a positive $18.4 million for the fourth quarter 2023. For the full year 2024, free cash flow was a negative $104.0 million compared to a positive $76.9 million for the same period in 2023. Excluding the factoring facility discontinuation impact of $101.2 million and including the proceeds from the sale of real estate of $45.5 million, 2024 free cash flow was a positive $42.7 million.
	·	Capital expenditures in the fourth quarter 2024 were $8.7 million compared to $13.1 million for the fourth quarter 2023. For the full year 2024, capital expenditures were $45.2 million compared to $67.8 million for the same period 2023.
	·	As of December 31, 2024, TTEC had cash and cash equivalents of $85.0 million and debt of $978.0 million, resulting in a net debt position of $893.0 million. This compares to a net debt position of $826.5 million for the same period 2023.
	·	As of December 31, 2024, TTEC’s remaining borrowing capacity under its revolving credit facility was approximately $225 million compared to $90 million for the same period 2023.
	·	On November 4, 2024, TTEC’s Board of Directors suspended the company’s semi-annual cash dividend as part of its ongoing shift to prioritize debt reduction. The cash dividend will continue to be suspended until further notice, as TTEC continues to focus on debt reduction and the Special Committee of the company’s Board of Directors is considering a potential take private transaction proposed by TTEC’s founder and CEO.

 

SALE OF REAL ESTATE ASSET NOT USED IN OPERATIONS

 

·

On November 5, 2024, the company closed a sale of real estate asset in Englewood, Colorado for $45.5 million dollars, subject to customary adjustments. Prior to the COVID pandemic, the building was used as TTEC’s principal place of business. The company used the proceeds from the sale to reduce its outstanding balance under its revolving credit facility.

 

NEW PRINCIPAL PLACE OF BUSINESS

 

·

As part of our strategic review of our business priorities, we decided to designate our office in Austin, Texas as our new principal place of business. Texas has been an important part of TTEC’s operations for decades, and this move provides us with access to a business-friendly environment, a strong economy, a skilled workforce, and a dynamic technology and innovation hub. This change does not impact our 70+ other global locations, including our Denver Center for Experience and Innovation in Greenwood, Colorado.  It also does not impact the jobs of those who are currently working in Colorado.

 

 

 

 

SEGMENT REPORTING & COMMENTARY

 

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

 

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

 

	·	Fourth quarter 2024 GAAP revenue for TTEC Digital was $115.0 million, a decrease of 3.5 percent compared to $119.1 million in the year ago period. Income from operations was $6.9 million or 6.0 percent of revenue compared to an operating income of $10.0 million or 8.4 percent of revenue in the prior year.
	·	Non-GAAP income from operations was $12.7 million, or 11.0 percent of revenue compared to operating income of $17.7 million or 14.8 percent of revenue in the prior year.

 

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

 

	·	Fourth quarter 2024 GAAP revenue for TTEC Engage was $452.5 million, a 10.8 percent decrease from $507.1 million for the year ago period. Income from operations was $8.4 million or 1.9 percent of revenue compared to operating income of $6.9 million, or 1.4 percent of revenue in the prior year.
	·	Non-GAAP income from operations was $22.3 million, or 4.9 percent of revenue, compared to operating income of $24.1 million, or 4.8 percent of revenue in the prior year.
	·	Foreign exchange had a $2.0 million negative impact on revenue and a $4.4 million positive impact on income from operations.

 

BUSINESS OUTLOOK

 

“At the company level, our fourth quarter financial performance was in line with the most recent guidance expectations communicated last quarter, and we are particularly pleased with our Engage segment’s profitability improvement in the second half of the year,“ commented Kenny Wagers, chief financial officer of TTEC. Wagers continued, “During 2024, we implemented several profit optimization initiatives within Engage and are confident our Digital segment will return to growth through our expanded suite of CX technology offerings, laying the foundation for margin improvements in 2025.”

 

 

 

 

TTEC Full Year 2025 Outlook

 

		Full Year 2025 Guidance		Full Year 2025 Mid-Point
Revenue		$2,014M — $2,064M		$2,039M
Non-GAAP adjusted EBITDA		$215M — $235M		$225M
Non-GAAP adjusted EBITDA margins		10.7% — 11.4%		11.0%
Non-GAAP operating income		$154M — $174M		$164M
Non-GAAP operating income margins		7.6% — 8.4%		8.0%
Interest expense, net		($75M) — ($79M)		($77M)
Non-GAAP adjusted tax rate		38% — 42%		40%
Diluted share count		48.2M — 48.6M		48.4M
Non-GAAP earnings per a share		$0.95 — $1.20		$1.08

 

Engage Full Year 2025 Outlook

 

		Full Year 2025 Guidance		Full Year 2025 Mid-Point
Revenue		$1,556M — $1,586M		$1,571M
Non-GAAP adjusted EBITDA		$151M — $163M		$157M
Non-GAAP adjusted EBITDA margins		9.7% — 10.3%		10.0%
Non-GAAP operating income		$101M — $113M		$107M
Non-GAAP operating income margins		6.5% — 7.1%		6.8%

 

Digital Full Year 2025 Outlook

 

		Full Year 2025 Guidance		Full Year 2025 Mid-Point
Revenue		$458M — $478M		$468M
Non-GAAP adjusted EBITDA		$64M — $72M		$68M
Non-GAAP adjusted EBITDA margins		13.9% — 15.0%		14.5%
Non-GAAP operating income		$53M — $61M		$57M
Non-GAAP operating income margins		11.5% — 12.7%		12.1%

 

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, Non-GAAP adjusted tax rate, 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 2025 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.

 

EARNINGS WEBCAST/CONFERENCE CALL

 

TTEC will host a live webcast and conference call at 8:30 a.m. ET on Friday, February 28, 2025. You are invited to join a live webcast of the conference call by visiting the "Investors Relations" section of the TTEC website at www.ttec.com. If you are unable to participate during the live webcast, a replay will be available on the TTEC website.

 

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 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 and related oral statements 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, profit improvement actions, 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, operational and financial 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, 2024 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.

 

###

 

 

 

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,
		2024				2023				2024				2023
Revenue		$	567,437			$	626,181			$	2,207,587			$	2,462,817
Operating Expenses:
Cost of services			448,931				505,814				1,735,865				1,932,877
Selling, general and administrative			73,161				74,744				293,042				290,873
Depreciation and amortization			23,697				24,904				97,955				101,272
Restructuring charges, net			3,806				3,145				10,152				8,041
Impairment losses			2,549				650				244,093				11,733
Total operating expenses			552,144				609,257				2,381,107				2,344,796
Income / (Loss) From Operations			15,293				16,924				(173,520	)			118,021
Other income (expense), net			(2,424	)			(21,988	)			(62,997	)			(77,297	)
Income / (Loss) Before Income Taxes			12,869				(5,064	)			(236,517	)			40,724
Provision for income taxes			(8,250	)			(3,142	)			(74,100	)			(22,460	)
Net Income / (Loss)			4,619				(8,206	)			(310,617	)			18,264
Net income / (loss) attributable to noncontrolling interest			(2,618	)			(1,694	)			(10,348	)			(9,836	)
Net Income / (Loss) Attributable to TTEC Stockholders		$	2,001			$	(9,900	)		$	(320,965	)		$	8,428
Net Income / (Loss) Per Share
Basic		$	0.10			$	(0.17	)		$	(6.52	)		$	0.39
Diluted		$	0.10			$	(0.17	)		$	(6.52	)		$	0.39
Net Income / (Loss) Per Share Attributable to TTEC Stockholders
Basic		$	0.04			$	(0.21	)		$	(6.74	)		$	0.18
Diluted		$	0.04			$	(0.21	)		$	(6.74	)		$	0.18
Income / (Loss) From Operations Margin			2.7	%			2.7	%			(7.9	)%			4.8	%
Net Income / (Loss) Income Margin			0.8	%			-1.3	%			(14.1	)%			0.7	%
Net Income / (Loss) Attributable to TTEC Stockholders Margin			0.4	%			(1.6	)%			(14.5	)%			0.3	%
Effective Tax Rate			64.1	%			(62.0	)%			(31.3	)%			55.2	%
Weighted Average Shares Outstanding
Basic			47,736				47,425				47,614				47,335
Diluted			48,150				47,425				47,614				47,419

 

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(In thousands)

 

		Three months ended								Twelve months ended
		December 31,								December 31,
		2024				2023				2024				2023
Revenue:
TTEC Digital		$	114,950			$	119,118			$	459,018			$	486,882
TTEC Engage			452,487				507,063				1,748,569				1,975,935
Total		$	567,437			$	626,181			$	2,207,587			$	2,462,817
Income / (Loss) From Operations
TTEC Digital		$	6,921			$	9,982			$	23,691			$	29,846
TTEC Engage			8,372				6,942				(197,211	)			88,175
Total		$	15,293			$	16,924			$	(173,520	)		$	118,021

 

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

 

		December 31,				December 31,
		2024				2023
ASSETS
Current assets:
Cash and cash equivalents		$	84,991			$	172,747
Accounts receivable, net			452,573				394,868
Prepaids and other current assets			92,947				95,064
Income and other tax receivables			21,785				18,524
Total current assets			652,296				681,203
Property and equipment, net			132,051				191,003
Operating lease assets			91,263				121,574
Goodwill			571,197				808,988
Other intangibles assets, net			164,808				198,433
Income and other tax receivables, long-term			31,781				44,673
Other assets			109,984				139,724
Total assets		$	1,753,380			$	2,185,598
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	84,180			$	96,577
Accrued employee compensation and benefits			137,636				146,184
Deferred revenue			64,752				81,171
Current operating lease liabilities			33,358				38,271
Other current liabilities			34,010				40,824
Total current liabilities			353,936				403,027
Long-term liabilities:
Line of credit			975,000				995,000
Non-current operating lease liabilities			71,008				96,809
Other long-term liabilities			85,317				75,220
Total long-term liabilities			1,131,325				1,167,029
Equity:
Common stock			477				474
Additional paid in capital			420,181				407,415
Treasury stock			(584,900	)			(589,807	)
Accumulated other comprehensive income (loss)			(132,121	)			(89,876	)
Retained earnings			546,617				870,429
Noncontrolling interest			17,865				16,907
Total equity			268,119				615,542
Total liabilities and equity		$	1,753,380			$	2,185,598

 

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

		Twelve months ended				Twelve months ended
		December 31,				December 31,
		2024				2023
Cash flows from operating activities:
Net (loss) income		$	(310,617	)		$	18,264
Adjustment to reconcile net (loss) income to net cash provided by operating activities :
Depreciation and amortization			97,955				101,272
Amortization of contract acquisition costs			1,995				2,288
Amortization of debt issuance costs			2,020				1,067
Imputed interest expense and fair value adjustments to contingent consideration			(1,496	)			7,579
Provision for credit losses			3,596				2,009
Loss on disposal of assets			(13,281	)			2,219
Impairment losses			244,093				11,733
Loss on dissolution of subsidiary							301
Deferred income taxes			58,530				(7,528	)
Excess tax benefit from equity-based awards			4,352				1,705
Equity-based compensation expense			18,690				22,071
Loss / (gain) on foreign currency derivatives			384				(3	)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable			(66,329	)			22,359
Prepaids and other assets			(17,120	)			8,570
Accounts payable and accrued expenses			(43,220	)			9,518
Deferred revenue and other liabilities			(38,370	)			(58,659	)
Net cash provided by operating activities			(58,818	)			144,765
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment			45,650				261
Purchases of property, plant and equipment			(45,173	)			(67,839	)
Net cash used in investing activities			477				(67,578	)
Cash flows from financing activities:
Net proceeds from / (repayments of) line of credit			(20,000	)			35,000
Payments on other debt			(2,405	)			(2,317	)
Payments of contingent consideration and hold back payments to acquisitions							(37,676	)
Dividends paid to shareholders			(2,847	)			(49,232	)
Payments to noncontrolling interest			(9,226	)			(10,972	)
Tax payments related to the issuance of restricted stock units			(1,014	)			(3,037	)
Payments of debt issuance costs			(2,804	)			-
Net cash used in financing activities			(38,296	)			(68,234	)
Effect of exchange rate changes on cash and cash equivalents and restricted cash			7,723				(2,112	)
(Decrease) in cash, cash equivalents and restricted cash			(88,914	)			6,841
Cash, cash equivalents and restricted cash, beginning of period			173,905				167,064
Cash, cash equivalents and restricted cash, end of period		$	84,991			$	173,905

 

 

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,
		2024				2023				2024				2023
Revenue		$	567,437			$	626,181			$	2,207,587			$	2,462,817
Reconciliation of Non-GAAP Income from Operations and EBITDA:
Net (Loss) / Income from Operations		$	15,293			$	16,924			$	(173,520	)		$	118,021
Restructuring charges, net			3,806				3,145				10,152				8,041
Impairment losses			2,549				650				244,093				11,733
Cybersecurity incident related impact, net of insurance recovery			-				-				-				(3,210	)
Grant income for pandemic relief			-				-				-				40
Property costs not related to operations			(96	)			757				2,233				1,501
Change in acquisition related obligation			-				-				-				483
Liability related to notifications triggered by labor scheme   (1)			-				6,000				(187	)			6,000
Fees related to non-binding offer			1,956				-				1,956				-
Equity-based compensation expenses			3,441				5,661				18,690				22,071
Amortization of purchased intangibles			7,986				8,676				33,039				35,759
Non-GAAP Income from Operations		$	34,935			$	41,813			$	136,456			$	200,439
Non-GAAP Income from Operations Margin			6.2	%			6.7	%			6.2	%			8.1	%
Depreciation and amortization			15,711				15,894				63,863				64,840
Changes in acquisition contingent consideration			-				616				(1,496	)			7,480
Change in escrow balance related to acquisition			-				-				-				625
Loss on dissolution of subsidiary			-				-				-				301
Gain on property sale			(15,453	)			-				(15,453	)			-
Foreign SS Tax Recovery			-				-				(853	)			-
Foreign VAT receivable writeoff			-				-				770				-
Foreign exchange loss / (gain), net			(1,961	)			1,112				420				1,950
Other Income (expense), net			17,633				(1,894	)			18,586				(4,126	)
Adjusted EBITDA		$	50,865			$	57,541			$	202,293			$	271,509
Adjusted EBITDA Margin			9.0	%			9.2	%			9.2	%			11.0	%
Reconciliation of Non-GAAP EPS:
Net (Loss) Income		$	4,619			$	(8,206	)		$	(310,617	)		$	18,264
Add:  Asset impairment and restructuring charges			6,355				3,795				254,245				19,774
Add:  Equity-based compensation expenses			3,441				5,661				18,690				22,071
Add:  Amortization of purchased intangibles			7,986				8,676				33,039				35,759
Add:  Cybersecurity incident related impact, net of insurance recovery			-				-				-				(3,210	)
Add:  Grant income for pandemic relief			-				-				-				40
Add:  Change in acquisition related obligation			-				-				-				483
Add:  Property costs not related to operations			(96	)			757				2,233				1,501
Add:  Fees related to non-binding offer			1,956				-				1,956				-
Add:  Gain on sale of property			(15,453	)			-				(15,453	)			-
Add:  Liability related to notifications triggered by labor scheme			-				6,000				(187	)			6,000
Add:  Foreign SS Tax Recovery			-				-				(853	)			-
Add:  Foreign VAT receivable writeoff			-				-				770				-
Add:  Changes in acquisition contingent consideration			-				616				(1,496	)			7,480
Add:  Changes in escrow balance related to acquisition			-				-				-				625
Add:  Loss on dissolution of subsidiary			-				-				-				301
Add:  Foreign exchange loss / (gain), net			(1,961	)			1,112				420				1,950
Less:  Changes in valuation allowance, return to provision adjustments and other, and tax effects of items separately disclosed above			2,108				(885	)			50,860				(7,859	)
Non-GAAP Net Income		$	8,955			$	17,526			$	33,607			$	103,179
Diluted shares outstanding			48,150				47,425				47,614				47,419
Non-GAAP EPS		$	0.19			$	0.37			$	0.71			$	2.18
Reconciliation of Free Cash Flow:
Cash Flow From Operating Activities:
Net (loss) / income		$	4,619			$	(8,206	)		$	(310,617	)		$	18,264
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			23,697				24,904				97,955				101,272
Other			(29,402	)			14,836				153,844				25,229
Net cash provided by operating activities			(1,086	)			31,534				(58,818	)			144,765
Less - Total Cash Capital Expenditures			8,708				13,117				45,173				67,839
Free Cash Flow		$	(9,794	)		$	18,417			$	(103,991	)		$	76,926

 

^{(1) -}  For further information, please see discussion in the Risk Factors section of the 2023 Form 10-K filed on February 29, 2024.

 

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)

 

Reconciliation of Non-GAAP Income from Operations and Adjusted EBITDA by Segment :

 

			TTEC Engage						TTEC Digital						TTEC Engage						TTEC Digital
			Q4 24			Q4 23			Q4 24			Q4 23			YTD 24			YTD 23			YTD 24			YTD 23
Income / (Loss) from Operations		$	8,372		$	6,942		$	6,921		$	9,982		$	(197,213	)	$	88,175		$	23,692		$	29,846
Restructuring charges, net			3,394			1,823			412			1,322			9,091			4,250			1,062			3,791
Impairment losses			2,549			700			-			(50	)		241,149			8,929			2,944			2,804
Cybersecurity incident related impact, net of insurance recovery			-			-			-			-			-			(3,210	)		-			-
Grant income for pandemic relief			-			-			-			-			-			40			-			-
Property costs not related to operations			(96	)		757			-			-			2,233			1,501			-			-
Fees related to non-binding offer			1,956			-			-			-			1,956						-
Change in acquisition related obligation			-			-			-			-			-			-			-			483
Liability related to notifications triggered by labor scheme			-			6,000			-			-			(187	)		6,000			-			-
Equity-based compensation expenses			2,006			3,658			1,435			2,003			11,754			14,257			6,936			7,814
Amortization of purchased intangibles			4,088			4,264			3,898			4,412			16,394			18,215			16,645			17,544
Non-GAAP Income from Operations		$	22,269		$	24,144		$	12,666		$	17,669		$	85,177		$	138,157		$	51,279		$	62,282
Depreciation and amortization			12,780			13,458			2,931			2,436			52,629			55,153			11,234			9,688
Changes in acquisition contingent consideration			-			616						-			(1,496	)		7,480			-			-
Change in escrow balance related to acquisition			-			-						-			-			625			-			-
Loss on dissolution of subsidiary			-			-						-			-			301			-			-
Foreign VAT receivable writeoff			-			-						-			770			-			-
Foreign SS Tax Recovery			-			-						-			(853	)		-			-
Gain on property sale			(15,453	)											(15,453	)
Foreign exchange loss / (gain), net			(1,724	)		1,271			(237	)		(159	)		794			2,085			(375	)		(135	)
Other Income (expense), net			17,478			(1,728	)		155			(166	)		18,311			(4,060	)		276			(67	)
Adjusted EBITDA		$	35,350		$	37,761		$	15,515		$	19,780		$	139,879		$	199,741		$	62,414		$	71,768

 

 

v3.25.0.1

Cover	Feb. 27, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 27, 2025
Entity File Number	001-11919
Entity Registrant Name	TTEC Holdings, Inc.
Entity Central Index Key	0001013880
Entity Tax Identification Number	84-1291044
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	100 Congress Avenue
Entity Address, Address Line Two	Suite 1425
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78701
City Area Code	303
Local Phone Number	397-8100
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock of TTEC Holdings, Inc., $0.01 par value per share
Trading Symbol	TTEC
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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