10-Q
TTEC HOLDINGS, INC. filed this Form 10-Q on 11/07/2018
Entire Document
 

Customer Growth Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

 

 

 

 

 

    

2018

    

2017

    

$ Change

    

% Change

 

Revenue

 

$

35,897

 

$

30,829

 

$

5,068

 

16.4

%

Operating Income

 

 

2,549

 

 

1,564

 

 

985

 

63.0

%

Operating Margin

 

 

7.1

%  

 

5.1

%  

 

 

 

 

 

 

The increase in revenue for the Customer Growth Services segment was due to several client adds in early 2018 leading to a $7.1 million increase in client programs offset by a decrease for program completions of $2.0 million.

The operating income as a percentage of revenue increased to 7.1% in the third quarter of 2018 as compared to 5.1% in the prior period. This increase in margin is provided by the client adds and related new revenue as noted above.

Customer Technology Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

 

 

 

 

 

    

2018

    

2017

    

$ Change

    

% Change

 

Revenue

 

$

49,967

 

$

34,563

 

$

15,404

 

44.6

%

Operating Income

 

 

6,778

 

 

4,158

 

 

2,620

 

63.0

%

Operating Margin

 

 

13.6

%  

 

12.0

%  

 

 

 

 

 

 

The increase in revenue for the Customer Technology Services segment was driven by significant increases in the cloud platform and the systems integration practice as well as a large product sale during the third quarter of 2018.

The operating income as a percentage of revenue increased to 13.6% in the third quarter of 2018 as compared to 12.0% in the prior period. This increase is primarily due to significant growth in the segment’s high margin cloud platform and the systems integration practice. Included in the operating income was amortization expense related to acquired intangibles of $0.3 million and $0.3 million for the quarters ended September 30, 2018 and 2017, respectively.

Customer Strategy Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

 

 

 

 

 

    

2018

    

2017

    

$ Change

    

% Change

 

Revenue

 

$

16,712

 

$

16,271

 

$

441

 

2.7

%

Operating Income

 

 

1,691

 

 

945

 

 

746

 

78.9

%

Operating Margin

 

 

10.1

%  

 

5.8

%  

 

 

 

 

 

 

The revenue for the Customer Strategy Services segment was related to increases in the service optimization practice across multiple delivery regions.

The operating income as a percentage of revenue increased to 10.1% in the third quarter of 2018 as compared to 5.8% in the prior period. The increase is primarily related to the increased revenue and reduced losses for the segment’s asset held for sale. Included in the operating income was amortization expense of $0.3 million and $0.5 million for the quarters ended September 30, 2018 and 2017, respectively.

Interest Income (Expense)

For the three months ended September 30, 2018 interest income increased to $1.4 million from $0.9 million in the same period in 2017. Interest expense increased to $8.4 million during 2018 from $3.5 million during 2017 due to larger utilization of the line of credit primarily due to acquisitions, higher interest rates, the upsizing of the credit facility completed in October 2017, and a $3.0 million charge related to the future purchase of the remaining 30% of the Motif acquisition.

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