DENVER, April 19 /PRNewswire/ -- TeleTech Holdings, Inc. (Nasdaq: TTEC),
the leading global provider of e-commerce-enabling customer management
solutions (eCRM), today announced record first quarter financial results. Net
income for the first quarter 2000 was $8.7 million or 13 cents per share on a
diluted basis, representing an 80 percent increase over first quarter 1999 net
income of $4.8 million or 8 cents per share on a diluted basis.
Revenues for the first quarter 2000 increased to a record $158.5 million,
up 43 percent from $110.6 million in the first quarter 1999, accelerating from
a 40 percent growth rate in the fourth quarter 1999. Approximately 91 percent
of this revenue growth was organic, and 9 percent resulted from acquisitions.
Operating margin for the first quarter 2000 was 9.1 percent, up 200 basis
points from first quarter 1999 operating margin of 7.1 percent. This marks
TeleTech's fourth consecutive quarter of improved operating margins. This
improvement is primarily the result of increased capacity utilization.
"TeleTech had a tremendous quarter," commented Scott Thompson, TeleTech
chief executive officer and president. "We delivered accelerated top-line
growth, and took aggressive actions to improve our capacity utilization,
reflected in our operating margin and net income growth. Our first quarter
operating margin improved 20 basis points over the fourth quarter of 1999. We
accomplished this despite the lift we experienced in the fourth quarter due to
seasonality of two large clients in the transportation industry. This
represents the first time since the company has been public that we increased
operating margins sequentially from the fourth quarter to the first quarter.
Our ability to consistently win large, long-term contracts and grow our
existing relationships is driving our success, and reaffirming our leadership
position in electronic customer relationship management."
TeleTech's success in the e-commerce marketplace is driven by its ability
to rapidly launch large-scale, complex multi-channel customer management
solutions for online banking clients, Internet service providers, leading DSL
providers as well as leading e-commerce retailers. Revenues from TeleTech's
e-commerce and e-commerce infrastructure clients totaled $32.3 million, a
nearly 70 percent increase over the same period in 1999, and representing
20 percent of TeleTech's first quarter revenues.
TeleTech's international revenues for the first quarter 2000 grew
approximately 88 percent from the first quarter 1999, reaching $43.3 million
and representing 27 percent of first quarter consolidated revenues. During the
first quarter, TeleTech generated strong revenue and margin growth in all
regions.
TeleTech today also announced the award of a multiyear contract from Qwest
Communications International Inc., a global leader in broadband Internet
communications, to provide support for its customer management operations
through a combination of both traditional and Internet-based solutions.
"TeleTech is moving at Internet speed to capitalize on the opportunities
in front of us. During the first quarter we announced important contract wins
from Allstate, Priceline Perfect YardSale, NetBank and Electronic Payment
Exchange, the formation of several significant strategic alliances, and most
recently the operational launch of Percepta, our joint venture with Ford Motor
Company," continued Thompson. "Looking ahead, we plan to continue to broaden
our offering through innovative strategic alliances and an expanded global
footprint while driving improved operating performance and profits."
"I am extremely pleased with our performance this quarter, and highly
commend Scott and his team on their efforts," said Ken Tuchman, TeleTech
chairman. "I am more confident than ever in our value proposition. As the
marketplace turns its attention to eCRM, we are positioned as the premier
provider of end-to-end large-scale customer management solutions."
"Moreover, I believe we will be rewarded for our strong fundamentals. We
have held our course and built long-term relationships with leading Fortune
500 companies, creating outstanding revenue visibility and improving operating
margins. We've developed a leading-edge technology platform, assembled a
world-class management team and are well positioned at the epicenter of an
enormous market opportunity," concluded Tuchman.
As of March 31, 2000, TeleTech had $50 million in cash, cash equivalents
and short-term investments and total debt-to-capitalization of 19 percent.
TELETECH PROFILE
Founded in 1982, TeleTech is the leading provider of integrated,
e-commerce-enabling customer management solutions (eCRM) for global
organizations predominantly in the telecommunications, financial services,
technology, government and transportation industries. Its innovative customer
interaction platform, CyberCare(TM), integrates the full spectrum of voice and
Internet communications, including custom e-mail response, "chat" and
extensive Web co-browsing capabilities. TeleTech operates 12,800
state-of-the-art customer interaction center workstations and employs 16,900
people in nine countries. Through 32 customer interaction centers in the
Americas, Europe and Asia, TeleTech couples high-velocity e-infrastructure
service deployment with premier quality e-customer relationship management to
assure our clients/partners unparalleled success in acquiring, retaining and
growing customer relationships.
Information regarding TeleTech Holdings can be found on the Worldwide Web
at http://www.teletech.com.
FORWARD LOOKING STATEMENTS
All statements not based on historical fact are forward-looking statements
that involve substantial risks and uncertainties. In accordance with the
Private Securities Litigation Reform Act of 1995, following are important
factors that could cause TeleTech's actual results to differ materially from
those expressed or implied by such forward-looking statements: lower than
anticipated customer interaction center capacity utilization; the loss or
delay in implementation of a customer management program; TeleTech's ability
to build-out facilities in a timely and economic manner; greater than
anticipated competition from new entrants into the customer care market,
causing increased price competition or loss of clients; the loss of one or
more significant clients; higher than anticipated start-up costs associated
with new business opportunities; TeleTech's ability to predict the potential
volume or profitability of any future technology or consulting sales;
TeleTech's agreements with clients may be canceled on relatively short notice;
and TeleTech's ability to generate a specific level of revenue is dependent
upon customer interest in and use of the Company's clients' products and
services. Readers are encouraged to review TeleTech's 1999 Annual Report on
Form 10-K, which describes other important factors that may impact TeleTech's
business, results of operations and financial condition. However, these
factors should not be construed as an exhaustive list. TeleTech cannot always
predict which factors could cause actual results to differ materially from
those in its forward-looking statements. In light of these risks and
uncertainties the forward-looking statements might not occur. TeleTech
assumes no obligation to update its forward-looking statements to reflect
actual results or changes in factors affecting such forward-looking
statements.
TELETECH HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three months ended
March 31,
2000 1999
Revenues $158,494 $110,638
Operating expenses:
Costs of services 105,002 74,368
Selling, general and
administrative expenses 39,063 28,404
Total operating expenses 144,065 102,772
Operating Income 14,429 7,866
Other income (expense) (154) 203
Income Before Income Taxes 14,275 8,069
Income tax expense 5,603 3,258
Net Income $8,672 $4,811
Basic Earnings Per Share $0.14 $0.08
Diluted Earnings Per Share $0.13 $0.08
Operating Margin 9.1% 7.1%
Net Income Margin 5.5% 4.3%
Shares Outstanding
Basic 61,990 59,423
Diluted 66,732 61,666
TELETECH HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $18,531 $14,663
Short-term investments 31,486 41,599
Accounts receivable, net 98,780 78,753
Other current assets 14,791 10,250
Total current assets 163,588 145,265
Property and Equipment, net 111,897 108,945
Other assets 50,940 39,520
Total assets $326,425 $293,730
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $54,458 $63,528
Total noncurrent liabilities 43,852 25,166
Total stockholders' equity 228,115 205,036
Total liabilities and
stockholders' equity $326,425 $293,730
TELETECH HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED CASH FLOW INFORMATION
(In thousands)
Three months ended
March 31,
2000 1999
Cash flow from operating activities:
Net income $8,672 $4,811
Adjustments to reconcile net income
to net cash provided from operating
activities:
Depreciation and amortization 8,067 6,307
Other (37,386) (11,165)
Net cash used in
operating activities $(20,647) $(47)
Total Capital Expenditures $10,626 $13,440
(inclusive of capital leases)
SOURCE TeleTech Holdings, Inc.
Web site:
http://www.teletech.com
Company News On-Call:
http://www.prnewswire.com/comp/107907.htmlor fax, 800-758-5804, ext. 107907
CONTACT: Emily Eikelberner, Manager, Investor Relations of
TeleTech Holdings, 303-894-7360,
emilyeikelberner@teletech.com
