News Column

TeleTech Reports 4th Quarter and Full Year 2013 Financial Results

February 27, 2014

TeleTech Holdings, Inc., a provider of analytics-driven, technology-enabled customer engagement solutions, announced financial results for the fourth quarter and full year ended December 31, 2013.

According to a release, the Company will file its Annual Report on Form 10-K in accordance with regulatory guidelines, no later than mid-March.

"We had a strong fourth quarter and finish to 2013. These solid results were across all four segments, demonstrating that our outcome-based, holistic customer engagement strategy is taking hold and our execution is accelerating. Our focus on partnering with clients to use analytics and technology to build meaningful, profitable and lasting connections with their customers is delivering value and increasingly differentiating us in the marketplace," said Ken Tuchman, chairman and chief executive officer of TeleTech.

In a release on February 24, the Company reported that highlights include:

Revenue

-Full year 2013 GAAP revenue was $1.193 billion compared to $1.163 billion in 2012.

-On a constant currency basis, 2013 revenue was approximately $1.21 billion. This represents a 5.8 percent growth rate over the prior year after adjusting for $37.6 million in exited business from Spain.

Income from Operations

-Full year 2013 GAAP income from operations was $101.4 million or 8.5 percent of revenue compared to $78.5 million or 6.8 percent of revenue in 2012.

-2013 income from operations on a constant currency basis and primarily adjusted for $5.6 million in restructuring charges and asset impairments increased to $112.9 million, representing 9.4 percent of adjusted revenue versus 9.0 percent the prior year.

Earnings Per Share

-Full year 2013 GAAP fully diluted earnings per share attributable to TeleTech shareholders was $1.29 from $1.26 for the full year 2012.

-Non-GAAP fully diluted earnings per share increased 12.3 percent to $1.55 from $1.38 in the prior year period.

Bookings

-During the full year 2013, TeleTech signed an estimated $365 million in annualized revenue from new and expanded client relationships, representing an increase of 20 percent over the prior year. The bookings mix was well diversified across all verticals with approximately 90 percent from existing clients, 64 percent in recurring revenue, 50 percent percent from emerging businesses and 27 percent from international clients.

Fourth Quarter 2013 Financial Highlights

Revenue

-Fourth quarter 2013 GAAP revenue was $318.1 million compared to $295.3 million in the year-ago quarter.

-On a constant currency basis, revenue was $326.3 million, representing a 12.3 percent growth rate over the year-ago period when adjusted for $1.7 million in exited business from Spain.

Income from Operations

-Fourth quarter 2013 GAAP income from operations was $32.8 million or 10.3 percent of revenue compared to $26.0 million or 8.8 percent of revenue in the fourth quarter 2012.

-Income from operations on a constant currency basis and adjusted for $0.3 million in restructuring charges increased 28.5 percent to $35.5 million or 10.9 percent of adjusted revenue. This compares to $27.7 million or 9.5 percent of adjusted revenue in the year-ago quarter.

-The improvement in operations was across all segments and primarily attributable to revenue mix, expanded offerings, acquisition contribution, retention, and capacity utilization, but offset by foreign currency fluctuations, incremental investment, and additional amortization expense from acquisitions.

Earnings Per Share

-Fourth quarter 2013 GAAP fully diluted earnings per share attributable to TeleTech shareholders was 38 cents, unchanged over the fourth quarter 2012.

-Adjusted fully diluted earnings per share increased 23.7 percent to 47 cents from 38 cents in the prior year period.

Bookings

-During the fourth quarter 2013, TeleTech signed an estimated $80 million in annualized revenue from new and expanded client relationships.

"We are optimistic about our 2014 business outlook and remain committed to continuing our investment in our strategy," said Regina Paolillo, chief financial and administrative officer of TeleTech. "We estimate a constant currency growth rate, including existing acquisitions, in the six to eight percent range. We expect revenue and operating income to follow similar trends as last year with a greater percentage of business delivered in the second half of the year. Additionally, we estimate a continued positive trend in our revenue mix with CGS, CTS and CSS comprising 28 percent of total revenue up from 25 percent in 2013."

More information:

www.TeleTech.com

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