TTEC Announces Fourth Quarter and Full Year 2018 Financial Results
DENVER, March 6, 2019 /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 fourth quarter and full year ended December 31, 2018.
"TTEC achieved many significant milestones in 2018. Most noteworthy, the company reported unprecedented sales bookings reaching the $600 million mark, and record revenue of one and a half billion dollars. These milestones demonstrate our differentiation as a customer experience technology and services partner, focused on the design, implementation and delivery of solutions that transform the engagement between our clients and their customers. Our digital-rich offerings are resonating with existing and new clients, including many disruptive, hypergrowth businesses," commented Ken Tuchman, TTEC's chairman and chief executive officer."
Tuchman continued, "We are particularly pleased to see the demand for our enterprise-scale, SaaS-based, omnichannel cloud solutions. Today, we continue to increase the number of subscription-based cloud contact center licenses supporting many of the world's most noteworthy enterprises and government agencies. Looking at 2019, we anticipate meaningful organic revenue growth in both our TTEC Digital and TTEC Engage businesses."
FULL YEAR 2018 FINANCIAL HIGHLIGHTS
Revenue
-- Full year 2018 GAAP revenue increased 2.2 percent to a record $1.509
billion compared to $1.477 billion for full year 2017.
-- Non-GAAP AHFS/WD revenue increased 3.0 percent to $1.501 billion
compared to full year 2017.
-- ASC 606 and foreign exchange had a net $9.0 million positive and $8.0
million negative impact, respectively, on revenue in full year 2018.
Income from Operations
-- Full year 2018 GAAP income from operations was $92.1 million, or 6.1
percent of revenue, compared to $100.5 million, or 6.8 percent of
revenue for full year 2017.
-- Non-GAAP AHFS/WD income from operations, excluding $12.7 million in
restructuring and one-time items, was $106.1 million or 7.1 percent of
adjusted revenue versus 8.4 percent for full year 2017.
-- ASC 606 and foreign exchange had a net $4.4 million and $6.1 million
positive impact, respectively, on income from operations in full year
2018.
Adjusted EBITDA
-- Full year 2018 Non-GAAP Adjusted EBITDA was $188.7 million, or 12.5
percent of revenue, compared to $200.4 million, or 13.6 percent of
revenue for full year 2017.
-- ASC 606 and foreign exchange had a net $4.4 million and $5.2 million
positive impact, respectively, on Adjusted EBITDA in full year 2018.
Earnings Per Share
-- Full year 2018 GAAP fully diluted earnings per share attributable to
TTEC shareholders was $0.77 compared to $0.16 for full year 2017.
-- Non-GAAP fully diluted earnings per share was $1.49 compared to $1.88
for full year 2017.
-- ASC 606 and foreign exchange had a net $0.07 and $0.10 positive impact,
respectively, on earnings per share in full year 2018.
Bookings
-- During the full year 2018, TTEC signed an estimated $600 million in
annualized contract value from new and expanded client relationships.
FOURTH QUARTER 2018 FINANCIAL HIGHLIGHTS
Revenue
-- Fourth quarter 2018 GAAP revenue decreased 1.8 percent to $419.1 million
compared to $426.6 million in the prior year period.
-- Non-GAAP AHFS/WD revenue decreased 1.0 percent to $418.9 million
compared to the prior year period.
-- ASC 606 and foreign exchange had a net $4.2 million positive and $5.4
million negative impact, respectively, on revenue in fourth quarter
2018.
Income from Operations
-- Fourth quarter 2018 GAAP income from operations was $39.0 million, or
9.3 percent of revenue, compared to $36.6 million, or 8.6 percent of
revenue in the prior year period.
-- Non-GAAP AHFS/WD income from operations, excluding $7.0 million in
restructuring and one-time items, was $46.0 million or 11.0 percent of
adjusted revenue versus 11.2 percent for the prior year period.
-- ASC 606 and foreign exchange had a net $0.5 million and $1.2 million
positive impact, respectively, on income from operations in fourth
quarter 2018.
Adjusted EBITDA
-- Fourth quarter 2018 Non-GAAP Adjusted EBITDA was $64.0 million, or 15.3
percent of revenue, compared to $67.8 million, or 15.9 percent of
revenue in the prior year period.
-- ASC 606 and foreign exchange had a net $0.5 million and $0.8 million
positive impact, respectively, on adjusted EBITDA in fourth quarter
2018.
Earnings Per Share
-- Fourth quarter 2018 GAAP fully diluted earnings per share attributable
to TTEC shareholders was $0.44 compared to a loss of $0.89 for the same
period last year.
-- Non-GAAP fully diluted earnings per share was $0.63 compared to $0.69 in
the prior year period.
-- ASC 606 and foreign exchange had a $0.01 and $0.02 positive impact,
respectively on earnings per share in fourth quarter 2018.
Bookings
-- During the fourth quarter 2018, TTEC signed an estimated $207 million in
annualized contract value. The fourth quarter bookings mix was
diversified across segments, verticals, and geographies.
STRONG BALANCE SHEET CONTINUES TO FUND OPERATIONS, DIVIDENDS, AND INVESTMENTS
-- As of December 31, 2018, TTEC had cash and cash equivalents of $78.2
million and debt of $304.5 million, resulting in a net debt position of
$226.3 million. This compares to a net debt position of $286.9 million
for the same period 2017.
-- As of December 31, 2018, TTEC had approximately $360 million of
additional borrowing capacity available under its revolving credit
facility compared to $350 million for the same period 2017.
-- Cash flow from operations in the fourth quarter 2018 was $2.2 million
compared to a negative ($36.5) million for the fourth quarter 2017. For
the full year, cash flow from operations was $168.3 million compared to
$113.2 million for the same period 2017.
-- Capital expenditures in the fourth quarter 2018 were $11.6 million
compared to $8.0 million for the fourth quarter 2017. For the full year
2018, capital expenditures were $43.5 million compared to $52.0 million
for the same period 2017.
-- Paid a 28 cent per share, or $12.9 million, semi-annual dividend on
October 19, 2018, a 12 percent increase over the distribution paid in
October of the prior year. In February 2019, the Board declared the next
semi-annual dividend of 30 cents per share, payable on April 18, 2019 to
shareholders of record on March 28, 2019. This represents a 7.1 percent
increase over the most recent distribution in October 2018 and an 11.1
percent increase over the distribution paid in April 2018.
SEGMENT REPORTING & COMMENTARY
TTEC reports financial results for the following four business segments: Customer Strategy Services (CSS), Customer Technology Services (CTS), Customer Growth Services (CGS), and Customer Management Services (CMS). Financial highlights for the segments are provided below.
Customer Strategy Services (CSS) - Customer Experience Digital Strategy and Data Analytics
-- CSS fourth quarter 2018 GAAP revenue increased 1.6 percent to $18.3
million from $18.0 million for the year ago quarter. Income from
operations was $3.0 million or 16.5 percent of revenue compared to an
operating loss $0.3 million or negative 1.7 percent of revenue for the
prior year period.
-- Non-GAAP AHFS/WD revenue increased 7.3 percent to $16.6 million over the
year ago period and income from operations was $3.2 million or 19.0
percent of adjusted revenue. This compares to operating income of $1.8
million or 11.5 percent of revenue in the prior year period.
Customer Technology Services (CTS) - Cloud and Managed Technology
-- CTS fourth quarter 2018 GAAP revenue increased 52.8 percent to $51.2
million compared to $33.5 million for the year ago quarter. Income from
operations was $9.4 million or 18.4 percent of revenue compared to $1.0
million or 3.0 percent of revenue in the prior year period.
-- Non-GAAP AHFS/WD revenue increased 52.8 percent to $51.2 million over
the year ago period and income from operations was $9.7 million or 18.9
percent of revenue. This compares to $4.4 million or 13.0 percent of
adjusted revenue in the prior year.
Customer Growth Services (CGS) - Digitally-Enabled Revenue Growth
-- CGS fourth quarter 2018 GAAP revenue increased 18.7 percent to $37.7
million compared to $31.8 million for the year ago quarter. Income from
operations was $2.9 million or 7.8 percent of revenue compared to $1.5
million or 4.7 percent of revenue in the prior year period.
-- Non-GAAP AHFS/WD revenue increased 22.2 percent to $37.7 million in the
year ago period and income from operations was $4.3 million or 11.4
percent of revenue. This compares to $2.1 million or 6.9 percent of
adjusted revenue in the prior year period.
Customer Management Services (CMS) - Customer Experience Delivery
-- CMS fourth quarter 2018 GAAP revenue decreased 9.2 percent to $311.8
million compared to $343.3 million for the year ago quarter. Income from
operations was $23.5 million or 7.5 percent of revenue compared to $34.4
million or 10.0 percent of revenue in the prior year period.
-- Non-GAAP revenue decreased 8.7 percent to $313.3 million in the year ago
period and income from operations was $28.9 million or 9.2 percent of
adjusted revenue. This compares to $39.2 million or 11.4 percent of
revenue in the prior year period.
-- ASC 606 had a net $4.2 million and $0.5 million positive impact on
revenue and income from operations, respectively.
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, 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 (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, (ii) impairment, restructuring and integration charges, and
(iii) one-time extraordinary items.
-- Non-GAAP Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation
and Amortization) - As reflected in the attached reconciliation table.
BUSINESS OUTLOOK
"The global market demand for digital transformation is accelerating as companies realize the urgency and importance that personalized and frictionless customer experiences have in building brand loyalty and value," commented Regina Paolillo, chief financial and administrative officer. "We are well positioned to capitalize on these market dynamics. Our differentiated solutions are delivering the customer experiences that our clients and their digital-savvy customers expect. The current scale and composition of our bookings and revenue demonstrates the markets' growing need for our digital and analytic-rich offerings."
Paolillo continued, "As we move into 2019, we are keenly focused on executing upon our unprecedented 2018 bookings, advancing our market share in the fast-growing omnichannel cloud space, improving CMS's profit margin, expanding our existing client relationships, and adding new clients. We remain committed to maximizing shareholder value through continuous innovation and marketplace differentiation, increased market share, profitable organic and inorganic growth, and capital distributions."
We anticipate full year 2019 guidance, excluding impairments and restructuring charges, as follows:
-- Revenue - Revenue between $1.614 and $1.630 billion, an increase of 7.5
to 8.6 percent over the prior year, excluding AHFS/WD.
-- Operating Income Margin - Operating income margin between 7.4 and 7.6
percent.
-- Adjusted EBITDA Margin - Non-GAAP adjusted EBITDA margin between 12.6
and 12.8 percent.
-- Capital Expenditures - Capital expenditures between 3.8 and 4.0 percent
of revenue, of which approximately 70 percent is growth oriented.
We estimate that 47 percent of the revenue, 38 percent of the operating income, and 43 percent of the adjusted EBITDA will be recognized in the first half of the year.
On a full year 2019 basis, we estimate each of the segments to contribute revenue, operating income, adjusted EBITDA as follows:
-- CSS revenue growth between 1.3 and 4.0 percent, operating income margin
between 8.1 and 9.5 percent, and adjusted EBITDA margin between 12.6 and
13.8 percent.
-- CTS revenue growth between 42.2 and 43.4 percent, operating income
margin between 13.9 and 14.3 percent, and adjusted EBITDA margin between
19.3 and 19.7 percent.
-- CGS revenue growth between 4.1 and 5.4 percent, operating income margin
between 8.4 and 8.6 percent, and adjusted EBITDA margin between 10.3 and
10.6 percent.
-- CMS revenue growth between 3.0 and 4.0 percent, operating income margin
between 5.8 and 6.0 percent, and adjusted EBITDA margin between 11.4 and
11.6 percent.
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, fraud prevention and detection, and content moderation services. Founded in 1982, the Company's 52,400 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. Specifically, we would like for you to focus on risks related to our strategy execution, our ability to innovate and introduce technologies that are sufficiently disruptive to allow us to maintain and grow our market share, cybersecurity risk and risks inherent to our equity structure. 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, 2018, 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
Public Relations Contact
Address
Contact
Paul Miller
Olivia Griner
9197 South Peoria Street
ttec.com
+1.303.397.8641
+1.303.397.8999
Englewood, CO 80112
+1.800.835.3832
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,
2018 2017 2018 2017
Revenue $419,133 $426,623 $1,509,171 $1,477,365
Operating Expenses:
Cost of services 313,372 312,618 1,157,927 1,110,068
Selling, general and administrative 47,817 49,942 182,428 182,314
Depreciation and amortization 17,127 17,234 69,179 64,507
Restructuring and integration
charges, net 1,532 4,897 6,131 14,665
Impairment losses 332 5,322 1,452 5,322
Total operating expenses 380,180 390,013 1,417,117 1,376,876
Income From Operations 38,953 36,610 92,054 100,489
Other income (expense), net (6,336) (8,318) (35,816) (11,602)
Income Before Income Taxes 32,617 28,292 56,238 88,887
Provision for income taxes (11,835) (69,016) (16,483) (78,075)
Net Income/(Loss) 20,782 (40,724) 39,755 10,812
Net income attributable to
noncontrolling interest (449) (728) (3,938) (3,556)
Net Income/(Loss) Attributable to TTEC
Stockholders $20,333 $(41,452) $35,817 $7,256
Net Income/(Loss) Per Share Attributable
to TTEC Stockholders
Basic $0.44 $(0.90) $0.78 $0.16
Diluted $0.44 $(0.89) $0.77 $0.16
Income From Operations Margin 9.3% 8.6% 6.1% 6.8%
Net Income/(Loss) Attributable to TTEC
Stockholders Margin 4.9% (9.7)% 2.4% 0.5%
Effective Tax Rate 36.3% 243.9% 29.3% 87.8%
Weighted Average Shares Outstanding
Basic 46,193 45,856 46,064 45,826
Diluted 46,390 46,461 46,385 46,382
TTEC HOLDINGS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(In thousands)
Three months ended Twelve months ended
December 31, December 31,
2018 2017 2018 2017
Revenue:
Customer Strategy Services $18,329 $18,036 $68,585 $68,326
Customer Technology
Services 51,223 33,527 170,214 138,581
Customer Growth Services 37,747 31,808 141,324 128,698
Customer Management
Services 311,834 343,252 1,129,048 1,141,760
Total $419,133 $426,623 $1,509,171 $1,477,365
Income/(Loss) From
Operations:
Customer Strategy Services $3,029 $(313) $6,420 $2,433
Customer Technology
Services 9,446 1,013 26,634 12,047
Customer Growth Services 2,944 1,508 9,839 7,803
Customer Management
Services 23,534 34,402 49,161 78,206
Total $38,953 $36,610 $92,054 $100,489
TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2018 2017
ASSETS
Current
assets:
Cash and
cash
equivalents $78,237 $74,437
Accounts
receivable,
net 350,962 391,902
Other
current
assets 97,278 75,070
Total
current
assets 526,477 541,409
Property
and
equipment,
net 161,523 163,346
Other
assets 366,508 373,981
Total
assets $1,054,508 $1,078,736
LIABILITIES
AND
EQUITY
Total
current
liabilities $235,418 $201,778
Other
long-
term
liabilities 466,241 514,113
Total
equity 352,849 362,845
Total
liabilities
and
equity $1,054,508 $1,078,736
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,
2018 2017 2018 2017
Reconciliation of Adjusted EBITDA:
Net Income/(Loss) ** $20,782 $(40,724) $39,755 $10,812
Interest income (536) (821) (4,476) (2,841)
Interest expense 6,040 5,035 28,674 13,734
Provision for income taxes 11,835 69,016 16,483 78,075
Depreciation and amortization 17,127 17,234 69,179 64,507
Asset impairment, restructuring
and integration charges 1,864 10,219 7,583 19,987
Impairment of equity investment 15,632
Gain on dissolution of a foreign
subsidiary (3,160)
Gain on sale of business unit (320) (259) (1,973) (430)
Changes in acquisition contingent
consideration /transition
service agreement (331) 5,250 (331) 5,250
Estimated loss of asset held for
sale (600) 2,578
(Gain) loss on asset held for sale
reclassified to asset held and
used (384) 1,616
Gain on bargain purchase of
acquisition (685)
Allowance for doubtful accounts
receivable from customer in
bankruptcy 2,706 2,706
Writeoff of contract acquisition
costs 1,436 1,436
Writeoff of value added tax due to
change in foreign tax law 966 966
Equity-based compensation
expenses 2,853 3,494 12,145 11,852
Adjusted EBITDA $64,038 $67,844 $188,710 $200,364
Reconciliation of Free Cash Flow:
Cash Flow From Operating
Activities:
Net income/(loss) ** $20,782 $(40,724) $39,755 $10,812
Adjustments to reconcile net
income to net cash
provided by operating activities:
Depreciation and amortization 17,127 17,234 69,179 64,507
Other (35,673) (13,001) 59,411 37,833
Net cash provided by operating
activities 2,236 (36,491) 168,345 113,152
Less -Total Capital Expenditures 11,609 8,026 43,450 51,958
Free Cash Flow $(9,373) $(44,517) $124,895 $61,194
Reconciliation of Non-GAAP and
Adjusted Non-GAAP Income from
Operations:
Income from Operations ** $38,953 $36,610 $92,054 $100,489
Restructuring and integration
charges, net 1,532 4,897 6,131 14,665
Impairment losses 332 5,322 1,452 5,322
Non-GAAP Income from Operations $40,817 $46,829 $99,637 $120,476
Non-GAAP Income from Operations
Margin 9.7% 11.0% 6.6% 8.2%
Allowance for doubtful accounts
receivable from customer in
bankruptcy 2,706 2,706
Writeoff of contract acquisition
costs 1,436 1,436
Writeoff of value added tax due to
change in foreign tax law 966 966
Adjusted Non-GAAP Income from
Operations $45,925 $46,829 $104,745 $120,476
Adjusted Non-GAAP Income from
Operations Margin 10.9% 11.0% 6.9% 8.2%
Reconciliation of Non-GAAP EPS:
Net Income/(Loss) ** $20,782 $(40,724) $39,755 $10,812
Add: Asset impairment,
restructuring and integration
charges, net of related taxes 1,362 6,401 5,514 12,304
Add: Estimated loss on asset held
for sale, net of related taxes (360) 1,547
Add: Changes in acquisition
contingent consideration /
transition services agreement,
net of related taxes (331) 3,150 (331) 3,150
Add: Interest charge related to
future purchase of remaining 30%
for Motif acquisition 1,939 1,210 9,928 1,210
Add: Impairment of equity
investment, net of related taxes 11,411
Less: Gain on dissolution of
foreign subsidiary, net of
related taxes (1,891)
Less: Gain on sale of business
unit (234) (155) (1,441) (258)
Less: Gain on bargain purchase of
acquisition (500)
Less: Gain (loss) on asset held
for sale reclassified to assets
held and used (384) 1,616
Add: Allowance for doubtful
accounts receivable from customer
in bankruptcy, net of related
taxes 1,975 1,975
Add: Writeoff of contract
acquisition costs 1,048 1,048
Add: Writeoff of value added tax
due to change in foreign tax law 676 676
Add: US 2017 Tax Act 62,372 62,372
Add: Changes in valuation
allowance, returns to provision
adjustments and other 2,616 25 (373) (2,175)
Non-GAAP Net Income $29,449 $31,919 $69,278 $87,071
Diluted shares outstanding 46,390 46,461 46,385 46,382
Non-GAAP EPS $0.63 $0.69 $1.49 $1.88
** The numbers above include
the adoption of ASC 606 and
include the following fourth
quarter and total 2018
amounts :
Fourth Quarter 2018 Revenue :
$4.2 million, YTD 2018
Revenue : + $9.0 million
Fourth Quarter 2018 Operating
Income : $0.6 million,
YTD 2018 Operating Income :
+ $4.4 million
Fourth Quarter 2018 Net Income
: $0.4 million, YTD 2018
Net Income : + $3.1 million
Non-GAAP AHFS/WD Reconciliation (Excluding Assets Held For Sale, Wind-down & One Time Items) & Year-over-Year (YoY) Growth Rate Comparison
U.S. Dollars in Thousands
FOURTH QUARTER
(three months end, December 31, 2018)
---
Revenue Operating Income
TTEC Digital GAAP Revenue Non-GAAP Revenue Adjustments Non-GAAP Revenue Revenue Contribution from AHFS/WD Non-GAAP Revenue (excluding AHFS/ TTEC Digital GAAP Operating Income Non-GAAP Operating Income Non-GAAP Operating Income Non-GAAP Operating Income Contribution Non-GAAP Operating Income
WD) Adjustments from AHFS/WD (excluding AHFS/WD)
---
CSS $18,329
$ - $18,329 $1,710 $16,619
CSS $3,029
$ - $3,029 $(125) $3,154
YoY Growth Rate: 1.6% 7.3%
Operating Margin: 16.5% 16.5% 19.0%
CTS $51,223
$ - $51,223
$ - $51,223
CTS $9,446 $248 $9,694 $5 $9,689
YoY Growth Rate: 52.8% 52.8%
Operating Margin: 18.4% 18.9% 18.9%
TTEC Engage TTEC Engage
CGS $37,747
$ - $37,747
$ - $37,747
CGS $2,944 $1,357 $4,301 $2 $4,299
YoY Growth Rate: 18.7% 22.2%
Operating Margin: 7.8% 11.4% 11.4%
CMS $311,834 $1,436 $313,270
$ - $313,270
CMS $23,534 $5,367 $28,901
$ - $28,901
YoY Growth Rate: -9.2% -8.7%
Operating Margin: 7.5% 9.2% 9.2%
Company (Consolidated) $419,133 $1,436 $420,569 $1,710 $418,859 Company $38,953 $6,972 $45,925 $(118) $46,043
YoY Growth Rate: -1.8% -1.0%
Operating Margin: 9.3% 11.0% 11.0%
Segments Defined: CSS (Customer Strategy Services), CTS (Customer Technology Services), CGS (Customer Growth Services), CMS (Customer Management Services)
Non-GAAP AHFS/WD Defined: Excludes from revenue and operating income i) assets held for sale and wind-down, ii) impairment, restructuring and integration charges, and iii) one-time extraordinary items.
Non-GAAP AHFS/WD Reconciliation (Excluding Assets Held For Sale, Wind-down & One Time Events) & Year-over-Year (YoY) Growth Rate Comparison
U.S. Dollars in Thousands
TOTAL YEAR
(twelve months end, December 31, 2018)
---
Revenue Operating Income
TTEC Digital GAAP Revenue Non-GAAP Revenue Adjustments Non-GAAP Revenue Revenue Contribution from AHFS/WD Non-GAAP Revenue (excluding AHFS/ TTEC Digital GAAP Operating Income Non-GAAP Operating Income Non-GAAP Operating Income Non-GAAP Operating Income Contribution Non-GAAP Operating Income
WD) Adjustments from AHFS/WD (excluding AHFS/WD)
---
CSS $68,585
$ - $68,585 $9,231 $59,354
CSS $6,420 $133 $6,553 $(1,332) $7,885
YoY Growth Rate: 0.4% -0.2%
Operating Margin: 9.4% 9.6% 13.3%
CTS $170,214
$ - $170,214
$ - $170,214
CTS $26,634 $248 $26,882 $(14) $26,896
YoY Growth Rate: 22.8% 29.1%
Operating Margin: 15.6% 15.8% 15.8%
TTEC Engage TTEC Engage
CGS $141,324
$ - $141,324 $1 $141,323
CGS $9,839 $2,073 $11,912 $(35) $11,947
YoY Growth Rate: 9.8% 13.7%
Operating Margin: 7.0% 8.4% 8.5%
CMS $1,129,048 $1,436 $1,130,484
$ - $1,130,484
CMS $49,161 $10,238 $59,399
$ - $59,399
YoY Growth Rate: -1.1% -1.0%
Operating Margin: 4.4% 5.3% 5.3%
Company (Consolidated) $1,509,171 $1,436 $1,510,607 $9,232 $1,501,375 Company $92,054 $12,692 $104,746 $(1,381) $106,127
YoY Growth Rate: 2.2% 3.0%
Operating Margin: 6.1% 6.9% 7.1%
Segments Defined: CSS (Customer Strategy Services), CTS (Customer Technology Services), CGS (Customer Growth Services), CMS (Customer Management Services)
Non-GAAP AHFS/WD Defined: Excludes from revenue and operating income i) assets held for sale and wind-down, ii) impairment, restructuring and integration charges, and iii) one-time extraordinary items.
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SOURCE TTEC Holdings, Inc.
