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TTEC Announces Third Quarter 2024 Financial Results

Published

2 years ago

on

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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SOURCE TTEC Holdings, Inc.

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COLUMBIA DISTRIBUTING COMPLETES ALASKA TRANSACTION WITH RNDC, ESTABLISHING A FOUR-STATE PACIFIC NORTHWEST TOTAL BEVERAGE PLATFORM

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October 26, 2026

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WILSONVILLE, Ore., Oct. 26, 2026 /PRNewswire/ — Columbia Distributing today announced it has completed its transaction with Republic National Distributing Company (RNDC) to acquire certain beverage distribution assets in Alaska, marking Columbia’s official entry into the state and completing the final component of the letter of intent announced by the companies in April.

The closing represents a major milestone in a long-term strategy Columbia set out to build: a multi-category, multi-state total beverage platform across the Pacific Northwest. With direct operations now spanning Alaska, Oregon, and Washington, along with its recently completed strategic partnership with Hayden Beverage in Idaho, Columbia has brought that vision to life, creating a connected four-state route to market and a more complete one-stop solution for supplier and retail partners across the region.

“This is a huge moment for Columbia because it represents exactly what we set out to build,” said Chris Steffanci, President and CEO of Columbia Distributing. “Our long-term vision has been to create the strongest total beverage platform in the Pacific Northwest—a multi-category, multi-state strategy that gives our partners a more complete solution across the region. With Alaska, that vision is now coming to life. We can offer suppliers and retailers a connected, capable, and increasingly seamless route to market across Alaska, Idaho, Oregon, and Washington.”

The Alaska transaction expands Columbia’s direct service territory to more than 835,000 square miles and adds nearly 1,500 customer accounts. It also brings Columbia into a market with an experienced local team, strong customer relationships, and an established beverage distribution network.

Columbia sees significant untapped potential in the Alaska business and plans to bring renewed investment, leadership, resources, and market focus to the state. The company will pair the Alaska team’s local knowledge and relationships with the culture and ways of working that drive Columbia’s performance in its existing markets, empowering people, moving with urgency, holding one another accountable, and maintaining a relentless focus on customers, brands, and execution.

“What has impressed me most is the energy and ambition of the Alaska team,” Steffanci said. “They know the market, they believe in the brands, and they are hungry to grow, compete, and win. They do not need us to teach them Alaska. Our responsibility is to give them the leadership, investment, tools, and support to show what they can do.”

“At Columbia, we trust our people, empower the teams closest to the market, and expect everyone to take ownership of results,” Steffanci continued. “That culture and the way we work across our company will bring new energy and momentum to Alaska. We are not entering the market to maintain the status quo—we are here to build, grow, compete, and raise the standard. This team is ready to be unleashed, and I believe the market is going to feel the difference very quickly.”

The expansion is the latest step in the deliberate strategy Columbia has pursued to build a broader total beverage business across multiple categories and markets. On June 30, the company completed its acquisition of certain RNDC wine and spirits distribution rights in Oregon and Washington. In September, Columbia completed a strategic partnership with Hayden Beverage, creating long-term alignment with Idaho’s leading locally based beverage distributor. The Alaska transaction completes the geographic footprint Columbia envisioned across the four-state Pacific Northwest market.

Together, these transactions create a platform designed around what suppliers and retailers increasingly need: one partner capable of representing multiple beverage categories across multiple states while still maintaining the local knowledge, relationships, and market-level execution required to succeed in each community.

Columbia’s expanded platform spans beer, wine, spirits, cider, non-alcoholic beverages, and emerging beverage categories. For supplier partners, it provides greater regional scale, category expertise, operational capabilities, and a more cohesive route to market. For retailers, it provides access to a broader portfolio backed by strong sales, delivery, merchandising, revenue management, and account execution capabilities.

“This is what total beverage means to us,” Steffanci added. “It is not simply adding categories or adding geography. It is about building a one-stop solution that connects categories, capabilities, people, and markets in a way that creates more value for our partners. We now have the platform we envisioned across the Pacific Northwest, and our focus turns to executing against that opportunity.”

Columbia is working closely with the Alaska team, suppliers, customers, and business partners to support a smooth transition. Columbia will communicate additional information about the operational transition, portfolio, and go-live timing directly to affected stakeholders.

Columbia appreciates RNDC’s partnership and the work of teams across both organizations to complete the transaction. Financial terms were not disclosed.

About Columbia Distributing

Since 1935, Columbia Distributing has helped build some of the best-known brands in the beverage business. Today, Columbia is one of the nation’s leading total beverage distributors, with a portfolio spanning beer, wine, spirits, cider, non-alcoholic beverages, and emerging beverage categories.

Columbia’s more than 3,200 teammates serve approximately 24,000 retail customers and deliver more than 80 million cases annually. With direct operations across Alaska, Oregon, and Washington and a strategic partnership with Hayden Beverage in Idaho, Columbia offers supplier and retail partners a connected four-state, multi-category route to market across the Pacific Northwest.

Columbia’s success is built on its people, its brands, and a deep-rooted commitment to execution, service, and creating sustainable growth for its teammates, customers, suppliers, shareholders, and communities. For more information, visit www.coldist.com.

Contact: Steve Gibbs
Steve.Gibbs@coldist.com | 206-920-6799

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SOURCE Columbia Distributing

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Secretary of the State Thomas Highlights Record Protecting Connecticut Businesses as Scams Grow More Sophisticated

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25 minutes ago

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October 26, 2026

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As early voting enters its final week, Secretary of the State Stephanie Thomas highlights her first-term record protecting Connecticut businesses, from fighting human trafficking and business hijacking to lowering fees and moving filings online, and pledges to keep business owners prepared as AI makes scams more sophisticated.

HARTFORD, Conn., Oct. 26, 2026 /PRNewswire-PRWeb/ — As scams targeting Connecticut businesses grow more sophisticated, including recent emails impersonating state offices, Secretary of the State Stephanie Thomas is highlighting the protections her team has put in place for the more than half a million businesses registered in Connecticut. She is seeking a second term to build on that work as AI-powered fraud creates new risks for business owners.

“If someone tries to steal your business, you’re not on your own. AI is making scams more sophisticated by the month, and I’ll keep making sure business owners know what to watch for.”

“Before I was Secretary of the State, I ran a small business, so I know how scarce time and money can be,” said Secretary Thomas. “That’s why our team cut fees and red tape, and why I fought for new laws that let my office investigate when fraudsters hijack a Connecticut business. If someone tries to steal your business, you’re not on your own. But the threats keep evolving. AI is making scams more sophisticated by the month, and I’ll keep making sure business owners know what to watch for. I’m not done delivering for Connecticut businesses, and I hope you’ll support me on November 3.”

Protecting Connecticut Businesses

Fighting human trafficking. Through Be a Light, Secretary Thomas made Connecticut the 7th state in the country and the first in the Northeast to help businesses identify, report and prevent human trafficking. Trafficking can reach any business through its customers, employees or supply chains. PreventHumanTraffickingCT.com gives owners practical guidance on what to watch for and what to do.

Stopping business hijacking. Fraudsters have stolen login credentials, changed a business’s listed owner and opened lines of credit in its name. Owners used to have only one remedy: hire a lawyer and go to court. Secretary Thomas brought the problem to the legislature. New laws now give her office the authority to investigate and the funding to build stronger protections, including screening that flags suspicious filings for human review.

Early warnings for owners. Business owners can turn on Follow Business alerts at Business.CT.gov to be notified whenever someone files a document for their business.

Lower costs, less red tape. Apostille fees are lower, and the entire process for authenticating documents for use abroad, used for about 40,000 documents a year, is now online. That makes Connecticut one of the first states to offer it. A new statewide trademark directory lets owners check a name before investing in it.

Help getting started and growing. A free monthly business newsletter gathers grants, funding and training opportunities in one place. A new Business Welcome Packet walks owners through their first steps, from tax IDs to fraud protection.

Early Voting Ends Sunday, Nov. 1

Early voting is open daily from 10 a.m. to 6 p.m. through Sunday, Nov. 1, with extended hours from 8 a.m. to 8 p.m. on Tuesday, Oct. 27 and Thursday, Oct. 29. There is no early voting on Monday, Nov. 2.

Every town has at least one early voting location. Voters can find theirs at MyVote.CT.gov or by contacting their town’s registrar of voters. Eligible residents who are not yet registered can register and vote the same day during early voting or on Election Day, Tuesday, Nov. 3, when polls are open from 6 a.m. to 8 p.m.

About Stephanie Thomas

Stephanie Thomas is Connecticut’s 75th Secretary of the State and the first Black person elected to the office. Since taking office in 2023, she has secured $20 million to modernize Connecticut’s election equipment, led the rollout of early in-person voting, expanded civic education through initiatives such as the Power of Civics platform and launched Be a Light, making Connecticut the first state in the Northeast to help businesses identify, report and prevent human trafficking.

Thomas is running for reelection in 2026. She serves on the Executive Board of the National Association of Secretaries of State and testified before Congress in 2025 about balancing voter access with election security.

Before becoming secretary, Thomas represented Norwalk, Wilton and Westport in the state legislature. She also ran a small business and spent nearly 30 years advising nonprofit organizations on strategy and fundraising.

Media Contact

Natasha Lopoukhine, Savvy Marketing Communications, 1 2039560920, natasha@igotsavvy.com, www.igotsavvy.com

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SOURCE Stephanie Thomas

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MNA: Berkshire VNA Nurses and Healthcare Professionals Deliver Petition Calling for a Fair Union Contract to Strengthen Patient Access to Home Care

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October 26, 2026

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While there has been bargaining progress on early-career wages, clinicians are urging BVNA to invest in experienced staff to support safe patient care

PITTSFIELD, Mass., Oct. 26, 2026 /PRNewswire/ — Berkshire Visiting Nurse Association (BVNA) nurses and healthcare professionals, represented by the Massachusetts Nurses Association (MNA), delivered a petition to BVNA management at 4 p.m. Monday, October 26, calling for a fair contract that supports recruitment, retains experienced clinicians and protects the time needed to care for patients safely at home. The parties next meet for bargaining on October 28.

The petition comes as the bargaining unit has shrunk by approximately half over the past several years amid high turnover and challenges attracting new staff. BVNA clinicians are seeking to reverse that decline to strengthen access to home care, help patients recover in familiar surroundings, and support timely hospital discharges.

“We appreciate that management has made progress toward attracting new staff by moving on wages for nurses and healthcare professionals early in their careers,” said Tamaryn Clowdus, physical therapist, and Co-Chair of the MNA Bargaining Committee at Berkshire VNA. “We also need reasonable cost-of-living increases for the experienced clinicians who have stayed with the VNA through difficult years. Building a stable workforce and supporting our home care patients requires a focus on both recruitment and retention.”

BVNA nurses and healthcare professionals provide care that helps patients manage illness, recover after hospitalization and remain safely at home. Experienced clinicians bring clinical judgment, knowledge of their communities and familiarity with patients’ needs. These are important community assets that are difficult to replace when staff leave.

With Berkshire Medical Center experiencing high patient volume, sufficient levels of home care staffing matters more than just the patients receiving visits. Ready access to home care can help patients who are ready to leave the hospital return home with the support they need, making more hospital beds available for people requiring acute care.

“Berkshire Medical Center nurses stand with our BVNA colleagues in their efforts to secure a fair contract that strengthens home care in Berkshire County,” said Sarah Roberts, RN, MNA Co-Chair at Berkshire Medical Center. “We see every day how much our patients depend on having care available when they return home. Supporting the clinicians who provide that care helps patients leave the hospital safely and keeps beds available for others who need acute care.”

The BVNA petition also calls for reasonable and achievable productivity expectations developed with clinicians and grounded in the realities of home care. A visit involves more than time spent in a patient’s home. Clinicians must also document care, coordinate services, communicate with providers and families, and travel between patients.

MassNurses.org │ Facebook.com/MassNurses │ Twitter.com/MassNurses │ Instagram.com/MassNurses 

Founded in 1903, the Massachusetts Nurses Association is the largest union of registered nurses in the Commonwealth of Massachusetts. Its 26,000 members advance the nursing profession by fostering high standards of nursing practice, promoting the economic and general welfare of nurses in the workplace, projecting a positive and realistic view of nursing, and by lobbying the Legislature and regulatory agencies on health care issues affecting nurses and the public.

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SOURCE Massachusetts Nurses Association

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