Technology
TTEC Announces Third Quarter 2024 Financial Results
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4 hours agoon
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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
View original content to download multimedia:https://www.prnewswire.com/news-releases/ttec-announces-third-quarter-2024-financial-results-302297901.html
SOURCE TTEC Holdings, Inc.
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Technology
Jereh Showcases Digitalized Exhibit at ADIPEC 2024, Highlighting Smart, Sustainable Energy Solutions
Published
4 mins agoon
November 7, 2024By
ABU DHABI, UAE, Nov. 7, 2024 /PRNewswire/ — Amidst a year of expansion and technological breakthroughs, Jereh brings a dynamic showcase to ADIPEC 2024. Pushing the boundaries of high-end engineering and equipment, Jereh is highlighting innovations in efficient oil & gas development, surface engineering, digital oilfield technologies and oilfield environmental management that resonate with a industry eager for greener and smarter solutions.
Showcasing a range of digital innovations, Jereh’s booth drew a large crowd eager to explore its advanced solutions. Distinguished visitors included His Excellency Omar Suwaina AlSuwaidi, Undersecretary at the UAE Ministry of Industry and Advanced Technology. This year also marks the 40th anniversary of diplomatic relations between China and the UAE, and Jereh had the honor of hosting Chinese Ambassador to the UAE, Zhang Yiming, at its booth.
As industries and governments intensify their focus on AI, its ability to tackle major challenges and shape the future of energy becomes increasingly clear. In response, ADIPEC 2024 has introduced a dedicated Energy AI Zone, specifically designed to explore how artificial intelligence can drive innovations and efficiency within the energy landscape.
Aligned with this trend, Jereh’s commitment to digital transformation becomes a major draw for ADIPEC visitors this year. Jereh’s Gas-Powered Electric Fracturing Solution features a 35MW gas turbine generator, electric frac trailers, an intelligent manifold system, and a smart command center for comprehensive site support. Its solutions, from remote equipment control to predictive maintenance, is able to create a decision-making model that ensures rapid, expert responses to any anomalies. This fully electric, smart site allows one-click operations from the command center, reducing the workforce from eight operators to three.
Expanding its digital expertise, Jereh also provides integrated digital solution for smart oil & gas fields engineering. On the second day of ADIPEC, Jereh signed a $920 million EPC contract with ADNOC Onshore to execute a transformative AI-powered well digitalization program. Under this contract, Jereh will install advanced remote sensing and operational equipment in over 2,000 wells across various fields. The project will enable real-time data transmission, monitoring, and analysis across these wellsites, helping ADNOC transition from traditional inspection methods to an advanced, fully digitalized, and largely autonomous management model.
Through its digitalized innovations and strategic partnerships, Jereh demonstrates its commitment to pioneering the energy industry. As ADIPEC 2024 underscores, Jereh is not only meeting current energy demands with sustainable solutions but is actively shaping a more resilient, data-driven, and efficient energy future.
Photo – https://mma.prnewswire.com/media/2550178/Jereh_ADIPEC_2024_BOOTH10410.jpg
Photo – https://mma.prnewswire.com/media/2550179/Jereh_ADIPEC2024.jpg
View original content:https://www.prnewswire.co.uk/news-releases/jereh-showcases-digitalized-exhibit-at-adipec-2024-highlighting-smart-sustainable-energy-solutions-302298144.html
Technology
Digital Realty Trust, L.P. Announces Pricing of $1.0 Billion Exchangeable Senior Notes Offering
Published
4 mins agoon
November 7, 2024By
AUSTIN, Texas, Nov. 6, 2024 /PRNewswire/ — Digital Realty Trust, Inc. (NYSE: DLR), (“Digital Realty”), the largest global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, today announced that its subsidiary, Digital Realty Trust, L.P. (“Digital Realty L.P.”), priced its offering of $1,000,000,000 aggregate principal amount of 1.875% exchangeable senior notes due 2029 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Digital Realty will fully and unconditionally guarantee the notes on a senior, unsecured basis. The issuance and sale of the notes are scheduled to settle on November 12, 2024, subject to customary closing conditions. Digital Realty L.P. also granted the initial purchasers of the notes an option to purchase, for settlement within a period of 13 days from, and including, the date the notes are first issued, up to an additional $150,000,000 principal amount of notes.
The notes will be senior, unsecured obligations of Digital Realty L.P. and will accrue interest at a rate of 1.875% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, beginning on May 15, 2025. The notes will mature on November 15, 2029, unless earlier repurchased, redeemed or exchanged. Before August 15, 2029, noteholders will have the right to exchange their notes only upon the occurrence of certain events. From and after August 15, 2029, noteholders may exchange their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Digital Realty L.P. will settle exchanges in cash and, if applicable, shares of Digital Realty’s common stock. The initial exchange rate is 4.7998 shares of Digital Realty’s common stock per $1,000 principal amount of notes, which represents an initial exchange price of approximately $208.34 per share of Digital Realty’s common stock. The initial exchange price represents a premium of approximately 20.0% over the last reported sale price of $173.62 per share of Digital Realty’s common stock on November 6, 2024. The exchange rate and exchange price will be subject to adjustment upon the occurrence of certain events.
The notes will be redeemable, in whole or in part (subject to certain limitations), for cash at Digital Realty L.P.’s option at any time, and from time to time, on or after November 22, 2027 and on or before the 40th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Digital Realty’s common stock exceeds 130% of the exchange price for a specified period of time and certain other conditions are satisfied. The redemption price will be equal to the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.
If certain corporate events that constitute a “fundamental change” occur, then, subject to a limited exception, noteholders may require Digital Realty L.P. to repurchase their notes for cash. The repurchase price will be equal to the principal amount of the notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date.
The notes will be entitled to the benefits of a registration rights agreement pursuant to which Digital Realty will agree to register, under the Securities Act, the resale of the shares of Digital Realty’s common stock, if any, issuable upon exchange of the notes within specified time periods and subject to certain limitations.
Digital Realty L.P. estimates that the net proceeds from the offering will be approximately $979.3 million (or approximately $1,126.8 million if the initial purchasers fully exercise their option to purchase additional notes), after deducting the initial purchasers’ discounts and commissions and Digital Realty L.P.’s estimated offering expenses. Digital Realty L.P. intends to use the net proceeds from the offering to temporarily repay borrowings outstanding under its global revolving credit facilities, acquire additional properties or businesses, fund development opportunities, and to provide for working capital and other general corporate purposes, including potentially for the repayment of other debt or the repurchase, redemption, or retirement of outstanding debt securities, or a combination of the foregoing.
The offer and sale of the notes, the guarantee and any shares of Digital Realty’s common stock issuable upon exchange of the notes have not been registered under the Securities Act or any other securities laws, and the notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. Although Digital Realty L.P. and Digital Realty will enter into a registration rights agreement pursuant to which Digital Realty will agree to register, under the Securities Act, the resale of the shares of Digital Realty’s common stock, if any, issuable upon exchange of the notes, the registration rights agreement will contain significant limitations, and a resale registration statement may not be available at the time investors wish to resell the shares of Digital Realty’s common stock, if any, issuable upon exchange of their notes. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the notes or any shares of Digital Realty’s common stock issuable upon exchange of the notes, nor will there be any sale of the notes or any such shares, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful.
About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents.
Investor Relations
Jordan Sadler / Jim Huseby
Digital Realty
+1 415 275 5344
InvestorRelations@digitalrealty.com
Safe Harbor Statement
This press release includes forward-looking statements, including statements regarding the completion of the offering and the expected amount and intended use of the net proceeds. Forward-looking statements represent Digital Realty’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, the satisfaction of the closing conditions related to the offering and risks relating to Digital Realty’s business, including those described in periodic reports that Digital Realty files from time to time with the SEC. Digital Realty L.P. may not consummate the offering described in this press release and, if the offering is consummated, cannot provide any assurances regarding its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and neither Digital Realty nor Digital Realty L.P. undertakes to update the statements included in this press release for subsequent developments, except as may be required by law.
View original content to download multimedia:https://www.prnewswire.com/news-releases/digital-realty-trust-lp-announces-pricing-of-1-0-billion-exchangeable-senior-notes-offering-302298154.html
SOURCE Digital Realty Trust
Technology
Western Sydney University and MindChamps join forces to transform early childhood education
Published
4 mins agoon
November 7, 2024By
SINGAPORE, Nov. 7, 2024 /PRNewswire/ — Western Sydney University and MindChamps have announced a Memorandum of Understanding (MoU) aimed at revolutionising early childhood education, enhancing workforce development, and fostering global pathways for education.
This collaboration harnesses the University’s research expertise and maximises MindChamps’ over a quarter of a century of research, teaching methodology and groundbreaking education pedagogy to elevate learning standards in Australia and globally.
The partnership builds on MindChamps’ research-backed approach which has been hailed as the Education Movement of the 21st Century by No. 1 New York Times and Wall Street Journal bestselling author, Dr Joseph A. Michelli.
Western Sydney University Vice-Chancellor and President, Distinguished Professor George Williams AO, emphasised the transformative potential of the partnership to drive educational innovation and make quality early childhood education accessible.
“Collaborating with MindChamps will allow us to nurture the next generation of early childhood educators, provide tailored educational pathways, and address workforce shortages,” said Distinguished Professor Williams.
“By combining research and practical training, we’re creating a unique platform that supports both students and communities, fostering a brighter future for early learners and educators alike.”
MindChamps Founder and CEO, Mr David Chiem, highlighted the partnership’s shared vision of holistic education.
“From the very beginning we set out in our Social Charter our intention ‘to challenge and lift education standards globally and to provide educational opportunities to those who would not otherwise have the means.’ With this partnership with Western Sydney University we will advance early childhood education with groundbreaking research, arts integration, and real-world training that prepares educators to meet the demands of a rapidly changing educational landscape and a world that is being transformed by Artificial Intelligence.”
“At MindChamps, our revolutionary 3-Mind Education Model – the Champion, Learning and Creative Mind, nurtures children’s Champion, Learning and Creative Minds through a unique curriculum crafted by global leaders in the four domains of Education, Psychology, Neuroscience and Theatre. We are thrilled to collaborate with the University to lift education standards globally, and provide the means for world class education.”
About MindChamps
“MindChamps is the Global Education Movement of the 21st Century.
While the companies featured in my prior books, Mercedes-Benz, The Ritz-Carlton Hotel Company and Starbucks demonstrate impressive brand power, none have been in a position to fundamentally shape society on par with MindChamps.”
Dr Joseph A. Michelli
No. 1 New York Times & Wall Street Journal Bestselling Author
While there are thousands of education brands across the world, only one:
Is hailed as a Global Education Movement by No. 1 New York Times and Wall Street Journal bestselling author, Dr Joseph A. Michelli.Has successfully created a breakthrough education methodology that has attained patent programme status across three continents – the US, UK and Australia.Has world-renowned neuroscientist Emeritus Professor Allan Snyder, Fellow of the Royal Society and Marconi Prize Winner as its Chancellor and Chair of the MindChamps Global Research, Advisory & Programme Development Team, comprising of award-winning, world-leading experts in the 4 Domains of ● Education ● Psychology ● Neuroscience ● TheatreHas created the revolutionary 3-Mind Education Model – the Champion, Learning and Creative Mind.Has a proprietary Reading & Writing programme backed by research, producing over 200 eBooks.Has the proven Optimal Flow MethodTM and Art of Learning techniques, along with Champion Mindset coaching, which have enabled students to achieve up to 6 grade improvements in English, Maths, Science and Chinese, as verified by Forvis Mazars, a leading internationally integrated partnership, specialising in audit, accountancy, advisory and tax services.*Has been accorded the WIPO-IPOS IP Award by the World Intellectual Property Organization for excellence in the brand’s Trademark Portfolio.Requires all its teachers to undergo up to 200 hours of professional training and accreditation, regardless of previous teaching experience or qualifications.Has its research and education philosophy published in 6 bestselling books by major world publishing houses.Nurtures every child to face the unpredictable world with the mindset of 100% Respect and Zero Fear!
*The results have been verified by Forvis Mazars LLP (fka Mazars LLP) in Singapore to supporting records provided by the Company, based on specified procedures in accordance with the Singapore Standard on Related Services SSRS 4400 Engagements to Perform Agreed-upon Procedures Regarding Financial Information.
View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/western-sydney-university-and-mindchamps-join-forces-to-transform-early-childhood-education-302297478.html
SOURCE MindChamps Education Group
Jereh Showcases Digitalized Exhibit at ADIPEC 2024, Highlighting Smart, Sustainable Energy Solutions
Digital Realty Trust, L.P. Announces Pricing of $1.0 Billion Exchangeable Senior Notes Offering
Western Sydney University and MindChamps join forces to transform early childhood education
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