TTEC Announces Third Quarter 2024 Financial Results

Third Quarter 2024

Revenue was $529.4 Million, down 12.2 Percent
Operating Income of $12.9 Million or 2.4 Percent of Revenue
(Operating Income of $34.1 Million or 6.4 Percent of Revenue Non-GAAP)
Net Loss of $19.0 Million or negative 3.6 Percent of Revenue
(Net Income of $5.4 Million or 1.0 Percent of Revenue Non-GAAP)
Adjusted EBITDA was $50.3 Million or 9.5 Percent of Revenue
Fully Diluted Net Loss Per Share of $0.40 (Net Income Per Share of $0.11 Non-GAAP)

DENVER, Nov. 6, 2024 /PRNewswire/ -- 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 third quarter ended September 30, 2024.

"We remain focused on executing our diversification strategies, enhancing our portfolio of AI-enabled CX solutions and our operational agility, while working to strengthen our financial performance," commented Ken Tuchman, chief executive officer of TTEC. "The industry dynamics and macroeconomic environment continue to create headwinds as select clients delay decision-making and/or focus on near-term cost savings."

"While taking more time than expected, we are prudently working through various challenges during this transitional year. We are executing against our top strategic priorities alongside taking the necessary profit improvement actions to strengthen our balance sheet and return the company to long-term revenue growth and increased profitability," Tuchman concluded.

THIRD QUARTER 2024 FINANCIAL HIGHLIGHTS           

Revenue        

• Third quarter 2024 GAAP revenue decreased 12.2 percent to $529.4 million compared to $603.0 million in the prior year.
• Foreign exchange had a $0.5 million negative impact on revenue in the third quarter of 2024.

Income (Loss) from Operations

• Third quarter 2024 GAAP income from operations was $12.9 million, or 2.4 percent of revenue, compared to income from operations of $25.4 million, or 4.2 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 $34.1 million, or 6.4 percent of revenue, compared to $47.3 million, or 7.8 percent, for the prior year.
• Foreign exchange had a $2.6 million positive impact on Non-GAAP income from operations in the third quarter of 2024.

Adjusted EBITDA     

• Third quarter 2024 Non-GAAP Adjusted EBITDA was $50.3 million, or 9.5 percent of revenue, compared to $63.9 million, or 10.6 percent of revenue, in the prior year.

Net Income (Loss)

• Third quarter 2024 GAAP net loss was $19.0 million, or negative 3.6 percent of revenue, compared to net income of $1.8 million, or 0.3 percent of revenue, in the prior year.
• Non-GAAP net income was $5.4 million, or 1.0 percent of revenue, compared to Non-GAAP net income of $22.9 million, or 3.8 percent of revenue, in the prior year.

Net Income (Loss) Per Share

• Third quarter 2024 GAAP fully diluted net loss per share was $0.40 compared to net income per share of $0.04 in the prior year.
• Non-GAAP fully diluted net income per share was $0.11 compared to Non-GAAP net income per share of $0.48 in the prior year.

CASH FLOW AND BALANCE SHEET 

• Cash flow from operations in the third quarter of 2024 was a negative $91.4 million compared to a negative $31.7 million for the third quarter of 2023.
• Free cash flow in the third quarter of 2024 was a negative $100.2 million compared to a negative $53.5 million in the prior year. The decline was primarily related to the impact of the accounts receivable factoring facility discontinuation in the quarter. This discontinuation negatively impacted our cash flow from operations by $81.8 million for the three months ended September 30, 2024 and $101.2 million for the nine months ended September 30, 2024. Excluding the factoring facility impact, free cash flow in the third quarter of 2024 was negative $18.4 million. The year-over-year improvement reflects improved working capital conversion and lower capital expenditures, partially offset by lower profitability.
• Capital expenditures in the third quarter of 2024 were $8.8 million compared to $21.8 million for the third quarter of 2023.
• As of September 30, 2024, TTEC had cash and cash equivalents of $96.9 million and debt of $1,028.4 million, resulting in a net debt position of $931.5 million. This compares to a net debt position of $815.7 million for the same period in 2023. The increase in net debt is also primarily explained by the discontinuation of the accounts receivable factoring facility.
• As of September 30, 2024, TTEC's remaining borrowing capacity under its revolving credit facility was approximately $140 million compared to $215 million for the same period in 2023.
• On November 4, 2024, the Board of Directors of the Company suspended the Company's semi-annual cash dividend as part of its ongoing shift to prioritize debt reduction associated with strategic acquisitions and other investments in the business. The Board expects to review the dividend suspension in the future to determine, in light of facts and circumstances at that time, whether and when to reinstate a semi-annual cash dividend.

SALE OF MATERIAL ASSET NOT USED IN OPERATIONS

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

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

• Third quarter 2024 GAAP revenue for TTEC Digital decreased 13.2 percent to $115.7 million from $133.3 million for the year ago period. Income from operations was $7.5 million, or 6.5 percent of revenue, compared to income from operations of $11.9 million, or 8.9 percent of revenue, in the prior year. The year-over-year reduction primarily relates to a large one-time on-premise sale in the prior year period. Excluding on-premise sales, TTEC Digital's professional services and recurring revenue together increased by 5.9 percent year over year in the third quarter. 
• Non-GAAP income from operations was $14.4 million, or 12.5 percent of revenue, compared to Non-GAAP income from operations of $19.4 million, or 14.5 percent of revenue, in the prior year.

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

• Third quarter 2024 GAAP revenue for TTEC Engage decreased 11.9 percent to $413.8 million from $469.7 million for the year ago period. Income from operations was $5.4 million, or 1.3 percent of revenue, compared to income from operations of $13.5 million, or 2.9 percent of revenue, in the prior year.
• Non-GAAP income from operations was $19.7 million, or 4.8 percent of revenue, compared to Non-GAAP income from operations of $27.9 million, or 5.9 percent of revenue, in the prior year.
• Foreign exchange had a $0.6 million negative impact on revenue and a $2.6 million positive impact on income from operations.

BUSINESS OUTLOOK

"We are achieving many of the key objectives that we set forth during this transitional year," commented Kenny Wagers, chief financial officer of TTEC. "In TTEC Digital, we are diversifying our CX technology partnerships and broadening our expertise and capabilities across Contact Center, CRM, AI and analytics solutions. In TTEC Engage, we are launching new client programs across our expanded geographic footprint, working through the previously mentioned headwinds, and executing upon our profit optimization initiatives. 

Wagers continued, "At the company level, we are re-iterating full year 2024 guidance near the lower end of the range that we provided last quarter. At the segment level, the appropriate contribution adjustments were made to reflect our third-quarter actual results and updated fourth-quarter forecasts. As we prepare to transition into 2025, we remain focused on our strategic priorities and resolute in our ability to return TTEC to long-term organic growth and increased profitability."

TTEC Full Year 2024 Outlook
	Full Year 2024 Guidance		Full Year 2024 Mid-Point
Revenue	$2,210M — $2,260M		$2,235M
Non-GAAP adjusted EBITDA	$201M — $217M		$209M
Non-GAAP adjusted EBITDA margins	9.1% — 9.6%		9.3 %
Non-GAAP operating income	$134M — $150M		$142M
Non-GAAP operating income margins	6.1% — 6.6%		6.3 %
Interest expense, net	($82M) — ($84M)		($83M)
Non-GAAP adjusted tax rate	40% — 46%		43 %
Diluted share count	47.6M — 47.8M		47.7M
Non-GAAP earnings per a share	$0.64 — $0.83		$0.73
Engage Full Year 2024 Outlook
	Full Year 2024 Guidance		Full Year 2024 Mid-Point
Revenue	$1,737M — $1,767M		$1,752M
Non-GAAP adjusted EBITDA	$137M — $147M		$142M
Non-GAAP adjusted EBITDA margins	7.9% — 8.3%		8.1 %
Non-GAAP operating income	$81M — $91M		$86M
Non-GAAP operating income margins	4.7% — 5.2%		4.9 %
Digital Full Year 2024 Outlook
	Full Year 2024 Guidance		Full Year 2024 Mid-Point
Revenue	$473M — $493M		$483M
Non-GAAP adjusted EBITDA	$63M — $69M		$66M
Non-GAAP adjusted EBITDA margins	13.4% — 14.1%		13.8 %
Non-GAAP operating income	$52M — $58M		$55M
Non-GAAP operating income margins	11.1% — 11.8%		11.5 %

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 2024 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

The Company will host a live webcast and conference call at 8:30 a.m. ET on Thursday, November 7, 2024. 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 contain "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 operations, reiteration of the Company's full year 2024 guidance near the lower end of the ranges provided in the third quarter of 2024, effective tax rate, cash flow, leverage, liquidity, business strategy, profit improvement actions, increased profitability, competitive position, strategic priorities, organic growth, 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," "reiterate," "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 could affect our business and may cause such differences as noted above and as outlined in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2023 and any subsequent filings or furnishings 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 or the timing thereof."

 

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,
			2024		2023		2024		2023
Revenue			$  529,427		$  602,956		$ 1,640,150		$ 1,836,636
Operating Expenses:
	Cost of services		415,226		479,699		1,286,934		1,427,063
	Selling, general and administrative		71,580		66,781		219,881		216,129
	Depreciation and amortization		24,042		25,595		74,258		76,368
	Restructuring charges, net		1,002		1,369		6,346		4,896
	Impairment losses		4,688		4,124		241,544		11,083
Total operating expenses			516,538		577,568		1,828,963		1,735,539
(Loss) / Income From Operations			12,889		25,388		(188,813)		101,097
	Other income (expense), net		(22,462)		(18,298)		(60,573)		(55,309)
(Loss) / Income Before Income Taxes			(9,573)		7,090		(249,386)		45,788
	Provision for income taxes		(9,395)		(5,294)		(65,850)		(19,318)
Net (Loss) / Income			(18,968)		1,796		(315,236)		26,470
	Net (loss) / income attributable to noncontrolling interest		(2,154)		(3,326)		(7,730)		(8,142)
Net (Loss) / Income Attributable to TTEC Stockholders			$  (21,122)		$    (1,530)		$  (322,966)		$      18,328
Net (Loss) / Income Per Share
	Basic		$      (0.40)		$       0.04		$        (6.63)		$         0.56
	Diluted		$      (0.40)		$       0.04		$        (6.62)		$         0.56
Net (Loss) / Income Per Share Attributable to TTEC Stockholders
	Basic		$      (0.44)		$      (0.03)		$        (6.79)		$         0.39
	Diluted		$      (0.44)		$      (0.03)		$        (6.78)		$         0.39
(Loss) / Income From Operations Margin			2.4 %		4.2 %		(11.5) %		5.5 %
Net (Loss) /  Income Margin			(3.6) %		0.3 %		(19.2) %		1.4 %
Net (Loss) / Income Attributable to TTEC Stockholders Margin			(4.0) %		(0.3) %		(19.7) %		1.0 %
Effective Tax Rate			(98.1) %		74.7 %		(26.4) %		42.2 %
Weighted Average Shares Outstanding
Basic			47,723		47,415		47,573		47,305
Diluted			47,860		47,488		47,618		47,417

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(In thousands)
(unaudited)
		Three months ended				Nine months ended
		September 30,				September 30,
		2024		2023		2024		2023
Revenue:
TTEC Digital		$     115,669		$      133,252		$     344,068		$    367,764
TTEC Engage		413,758		469,704		1,296,082		1,468,872
Total		$     529,427		$      602,956		$  1,640,150		$ 1,836,636
(Loss) / Income From Operations
TTEC Digital		$         7,474		$       11,925		$      16,770		$     19,864
TTEC Engage		5,415		13,463		(205,583)		81,233
Total		$       12,889		$       25,388		$   (188,813)		$    101,097

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
		September 30,		December 31,
		2024		2023
ASSETS
Current assets:
Cash and cash equivalents		$           96,929		$       172,747
Accounts receivable, net		430,092		394,868
Prepaids and other current assets		105,355		95,064
Income and other tax receivables		20,690		18,524
Total current assets		653,066		681,203
Property and equipment, net		146,358		191,003
Assets Held for Sale		29,640		-
Operating lease assets		100,263		121,574
Goodwill		575,096		808,988
Other intangibles assets, net		173,227		198,433
Income and other tax receivables, long-term		34,469		44,673
Other assets		114,171		139,724
Total assets		$      1,826,290		$     2,185,598
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$           82,259		$         96,577
Accrued employee compensation and benefits		121,255		146,184
Deferred revenue		70,834		81,171
Current operating lease liabilities		35,217		38,271
Other current liabilities		29,085		40,824
Total current liabilities		338,650		403,027
Long-term liabilities:
Line of credit		1,025,000		995,000
Non-current operating lease liabilities		79,909		96,809
Other long-term liabilities		87,597		75,220
Total long-term liabilities		1,192,506		1,167,029
Equity:
Common stock		477		474
Additional paid-in capital		416,813		407,415
Treasury stock		(584,904)		(589,807)
Accumulated other comprehensive income (loss)		(99,697)		(89,876)
Retained earnings		544,616		870,429
Non-controlling interest		17,829		16,907
Total equity		295,134		615,542
Total liabilities and equity		$      1,826,290		$     2,185,598

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
	Nine Months Ended		Nine Months Ended
	September 30,		September 30,
	2024		2023
Cash flows from operating activities:
Net (loss) income	$                    (315,236)		$                        26,470
Adjustment to reconcile net (loss) income to net cash provided by operating activities :
Depreciation and amortization	74,258		76,368
Amortization of contract acquisition costs	1,363		1,596
Amortization of debt issuance costs	1,578		801
Imputed interest expense and fair value adjustments to contingent consideration	(1,496)		6,864
Provision for credit losses	2,744		1,677
Loss on disposal of assets	1,778		1,176
Impairment losses	241,544		11,083
Loss on dissolution of subsidiary	-		301
Deferred income taxes	38,922		(12,288)
Excess tax benefit from equity-based awards	3,921		1,807
Equity-based compensation expense	15,249		16,410
Loss / (gain) on foreign currency derivatives	244		552
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(37,497)		34,995
Prepaids and other assets	(12,959)		(1,620)
Accounts payable and accrued expenses	(49,122)		(8,453)
Deferred revenue and other liabilities	(23,023)		(44,508)
Net cash provided by operating activities	(57,732)		113,231
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment	146		246
Purchases of property, plant and equipment	(36,465)		(54,722)
Net cash used in investing activities	(36,319)		(54,476)
Cash flows from financing activities:
Net proceeds from / (repayments of) line of credit	30,000		4,000
Payments on other debt	(1,873)		(1,929)
Payments of contingent consideration and hold back payments to acquisitions			(37,676)
Dividends paid to shareholders	(2,847)		(24,572)
Payments to non-controlling interest	(6,908)		(8,407)
Tax payments related to the issuance of restricted stock units	(945)		(2,938)
Payments of debt issuance costs	(2,635)		-
Net cash used in financing activities	14,792		(71,522)
Effect of exchange rate changes on cash and cash equivalents and restricted cash	2,283		3,889
(Decrease) in cash, cash equivalents and restricted cash	(76,976)		(8,878)
Cash, cash equivalents and restricted cash, beginning of period	173,905		167,064
Cash, cash equivalents and restricted cash, end of period	$                       96,929		$                      158,186

 

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,
		2024		2023					2024		2023
Revenue		$   529,427		$  602,956					$    1,640,150		$      1,836,636
Reconciliation of Non-GAAP Income from Operations and EBITDA:
Net (Loss) / Income from Operations		$     12,889		$    25,388					$     (188,813)		$         101,097
Restructuring charges, net		1,002		1,369					6,346		4,896
Impairment losses		4,688		4,124					241,544		11,083
Cybersecurity incident related impact, net of insurance recovery		-		-					-		(3,210)
Grant income for pandemic relief		-		-					-		40
Property costs not related to operations		424		744					2,329		744
Change in acquisition related obligation		-		-					-		483
Liability related to notifications triggered by labor scheme   (1)		2,563		-					(187)		-
Equity-based compensation expenses		4,333		6,608					15,249		16,410
Amortization of purchased intangibles		8,169		9,073					25,053		27,083
Non-GAAP Income from Operations		$     34,068		$    47,306					$       101,521		$         158,626
Non-GAAP Income from Operations Margin		6.4 %		7.8 %					6.2 %		8.6 %
Depreciation and amortization		15,873		16,183					48,152		48,946
Changes in acquisition contingent consideration		(449)		102					(1,496)		6,864
Change in escrow balance related to acquisition		-		-					-		625
Loss on dissolution of subsidiary		-		-					-		301
Foreign SS Tax Recovery		-		-					(853)		-
Foreign VAT receivable write-off		-		-					770		-
Foreign exchange loss / (gain), net		1,825		(373)					2,381		839
Other Income (expense), net		(1,041)		687					953		(2,232)
Adjusted EBITDA		$     50,276		$    63,905					$       151,428		$         213,969
Adjusted EBITDA Margin		9.5 %		10.6 %					9.2 %		11.7 %
Reconciliation of Non-GAAP EPS:
Net (Loss) Income		$    (18,968)		$      1,796					$     (315,236)		$          26,470
Add:  Asset impairment and restructuring charges		5,690		5,493					247,890		15,979
Add:  Equity-based compensation expenses		4,333		6,608					15,249		16,410
Add:  Amortization of purchased intangibles		8,169		9,073					25,053		27,083
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		424		744					2,329		744
Add:  Liability related to notifications triggered by labor scheme		2,563		-					(187)		-
Add:  Foreign SS Tax Recovery		-		-					(853)		-
Add:  Foreign VAT receivable write-off		-		-					770		-
Add:  Changes in acquisition contingent consideration		(449)		102					(1,496)		6,864
Add:  Changes in escrow balance related to acquisition		-		-					-		625
Add:  Loss on dissolution of subsidiary		-		-					-		301
Add:  Foreign exchange loss / (gain), net		1,825		(373)					2,381		839
Less:  Changes in valuation allowance, return to provision adjustments and other, and tax effects of items separately disclosed above		1,810		(590)					48,752		(6,974)
Non-GAAP Net Income		$       5,397		$    22,853					$         24,652		$          85,654
Diluted shares outstanding		47,860		47,488					47,618		47,417
Non-GAAP EPS		$0.11		$0.48					$0.52		$1.81
Reconciliation of Free Cash Flow:
Cash Flow From Operating Activities:
Net (loss) / income		$    (18,968)		$      1,321					$     (315,236)		$          26,470
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		24,042		25,256					74,258		76,368
Other		(96,451)		(58,295)					183,246		10,393
Net cash provided by operating activities		(91,377)		(31,718)					(57,732)		113,231
Less - Total Cash Capital Expenditures		8,783		21,768					36,465		54,722
Free Cash Flow		$  (100,160)		$  (53,486)					$       (94,197)		$          58,509
(1) -  For further information, please see discussion in the Risk Factors section of the 2023 Form 10-K filed on February 29, 2024.
Reconciliation of Non-GAAP Income from Operations and Adjusted EBITDA by Segment :
		TTEC Engage				TTEC Digital			TTEC Engage				TTEC Digital
		Q3 24		Q3 23		Q3 24	Q3 23		YTD 24		YTD 23		YTD 24	YTD 23
Income / (Loss) from Operations		$       5,414		$    13,463		$     7,474	$    11,925		$     (205,585)		$          81,233		$     16,771	$    19,864
Restructuring charges, net		202		634		801	735		5,697		2,427		650	2,469
Impairment losses		4,255		4,124		433	-		238,600		8,229		2,944	2,854
Cybersecurity incident related impact, net of insurance recovery				-		-	-				(3,210)		-	-
Grant income for pandemic relief				-		-	-				40		-	-
Property costs not related to operations		424		744		-	-		2,329		744		-	-
Change in acquisition related obligation		-		-		-	-				-		-	483
Liability related to notifications triggered by labor scheme		2,563		-		-	-		(187)		-		-	-
Equity-based compensation expenses		2,701		4,327		1,632	2,281		9,748		10,599		5,501	5,811
Amortization of purchased intangibles		4,098		4,649		4,071	4,424		12,306		13,951		12,747	13,132
Non-GAAP Income from Operations		$     19,657		$    27,941		$    14,411	$    19,365		$         62,908		$         114,013		$     38,613	$    44,613
Depreciation and amortization		12,958		13,807		2,915	2,377		39,849		41,695		8,303	7,252
Changes in acquisition contingent consideration		(449)		102			-		(1,496)		6,864		-	-
Change in escrow balance related to acquisition				-			-		-		625		-	-
Loss on dissolution of subsidiary		-		-			-		-		301		-	-
Foreign VAT receivable write-off		-		-			-		770		-		-
Foreign SS Tax Recovery		-		-			-		(853)		-
Foreign exchange loss / (gain), net		1,725		(297)		100	(76)		2,518		815		(138)	24
Other Income (expense), net		(944)		578		(97)	108		833		(2,332)		121	99
Adjusted EBITDA		$     32,947		$    42,131		$    17,329	$    21,774		$       104,529		$         161,981		$     46,899	$    51,988

 

 

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