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

We reinvest our cash flows to grow our client base, expand our infrastructure, for investment in research and development, for strategic acquisitions, for the purchase of our outstanding stock and to pay dividends.

Cash Flows from Operating Activities

For the nine months ended September 30, 2018 and 2017, net cash flows provided by operating activities was $166.1 million and $149.6 million, respectively. The increase was due to an increase in working capital of $29.1 million primarily driven by higher collections from accounts receivable and increased payments made for operating expenses, offset by a $12.6 million decline in net cash provided by net income.

Cash Flows from Investing Activities

For the nine months ended September 30, 2018 and 2017, net cash flows used in investing activities was  $36.0 million and $126.3 million, respectively. The decrease was due to a $12.1 million decrease in capital expenditures and a $78.6 million decrease related to acquisitions.

Cash Flows from Financing Activities

For the nine months ended September 30, 2018 and 2017, net cash flows used in financing activities was  $95.8 million and $1.4 million, respectively. The change in net cash flows from 2017 to 2018 was primarily due to an  $18.3 million decrease in purchases of our outstanding common stock, offset by a $109.2 million decrease in the Credit Facility and a $2.3 million increase in dividends to shareholders.

Free Cash Flow

Free cash flow (see “Presentation of Non-GAAP Measurements” below for the definition of free cash flow) increased for the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017 primarily due to an increase in cash flow from working capital and lower capital expenditures. Free cash flow was $134.3 million and $105.7 million for the nine months ended September 30, 2018 and 2017, respectively.

Presentation of Non-GAAP Measurements

Free Cash Flow

Free cash flow is a non-GAAP liquidity measurement. We believe that free cash flow is useful to our investors because it measures, during a given period, the amount of cash generated that is available for debt obligations and investments other than purchases of property, plant and equipment. Free cash flow is not a measure determined by GAAP and should not be considered a substitute for “income from operations,” “net income,” “net cash provided by operating activities,” or any other measure determined in accordance with GAAP. We believe this non-GAAP liquidity measure is useful, in addition to the most directly comparable GAAP measure of “net cash provided by operating activities,” because free cash flow includes investments in operational assets. Free cash flow does not represent residual cash available for discretionary expenditures, since it includes cash required for debt service. Free cash flow also includes cash that may be necessary for acquisitions, investments and other needs that may arise.

The following table reconciles net cash provided by operating activities to free cash flow for our consolidated results (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 
September 30,

 

Nine Months Ended 
September 30,

 

    

2018

    

2017

    

2018

    

2017

 

Net cash provided by operating activities

 

$

61,403

 

$

24,188

 

$

166,109

 

$

149,643

 

Less: Purchases of property, plant and equipment

 

 

14,958

 

 

14,343

 

 

31,841

 

 

43,932

 

Free cash flow

 

$

46,445

 

$

9,845

 

$

134,268

 

$

105,711

 

 

44