DENVER, March 1, 2005 /PRNewswire-FirstCall via COMTEX/ -- TeleTech Holdings, Inc.
(Nasdaq: TTEC), a global provider of customer management and business process
outsourcing (BPO) solutions, filed today, as previously announced, its 2003
Annual Report on Form 10-K/A to restate its financial statements for the years
ended December 31, 2003, 2002, and 2001. TeleTech also filed a Quarterly
Report on Form 10-Q/A for each of the 2004 quarters ended March 31, June 30,
and September 30 for the comparative prior year periods presented and for the
items discussed below.
TeleTech's decision to restate its financial statements for the years
ended December 31, 2003, 2002, and 2001 was previously disclosed in the
Company's Form 8-K filed on December 30, 2004. The restatement is primarily a
result of accounting adjustments related to prior periods, the majority of
which were initially disclosed in Item 9A (entitled Disclosure Controls and
Procedures) in the original filing of the Company's Annual Report on Form 10-K
for the year ended December 31, 2003. In addition, certain adjustments were
identified since the initial filing of the 2003 Report on Form 10-K, the
largest of which were (i) to correct the amortization for certain contract
acquisition costs from three years to eight years, and (ii) to account for
escalation clauses in certain of the Company's facility leases on a
straight-line basis; each of which have carryover effects resulting in an
increase to 2004 net income as discussed below. Furthermore, the carryover
effects of these adjustments to years after 2004 will result in a net increase
in pre-tax income of approximately $2 million. The amended financial
statements also reflect adjustments not recorded when such financial
statements were originally filed as their impact was believed not to be
material at the time of such initial filings. Information regarding these
adjustments can be found in the amended financial statements filed today with
the Securities and Exchange Commission.
The following table summarizes the impact to net income of the prior
period adjustments discussed above (in thousands).
Net income (loss) Net income (loss) Change in
as originally as amended Net income
reported (loss)
Years ended December
31, 2000 and prior-
recorded as an adjustment
to December 31, 2000
ending retained earnings N/A N/A $(6,778)
Year ended December 31, 2001 $(1,925) $(5,690) $(3,765)
Year ended December 31, 2002 $(16,755) $(19,882) $(3,127)
Year ended December 31, 2003 $(41,206) $(30,504) $10,702
2004:
First quarter $1,609 $1,401 $(208)
Second quarter $2,053 $2,390 $337
Third quarter $10,314 $10,557 $243
ABOUT TELETECH
TeleTech is a global business services company that provides a full range
of front- to back-office solutions including customer management, BPO,
database marketing, and outsourced services to measurably enhance clients'
core customer management processes. TeleTech's ability to create innovative
strategies, combined with its global technology platform and delivery
infrastructure, helps clients increase revenue, lower costs, and retain their
customers around the world. TeleTech's products and services, standardized
processes, and recognized capabilities to implement complex global projects
make the Company a valued partner for clients that include Global 1000
businesses and governments. TeleTech partners with clients to offer 150
languages, through its more than 32,000 employees, in
17 countries. For additional information, visit www.TeleTech.com.
FORWARD-LOOKING STATEMENTS
This press release may contain certain forward-looking statements relating
to future results. The Private Securities Litigation Reform Act of 1995
provides a safe harbor for forward-looking statements. These forward-looking
statements are subject to risks and uncertainties that may cause TeleTech's
and its subsidiaries' actual results to differ materially from those expressed
or implied by such forward-looking statements, including but not limited to
the following: the ability to achieve the Company's three-year financial goals
and targeted cost reductions; the ability to successfully launch and generate
revenue from new product introductions; the estimated revenue associated with
new or renewed client agreements; the possibility of the Company's Database
Marketing and Consulting segment not returning to historic levels of
profitability; greater than anticipated competition in the customer care
market, causing adverse pricing and more stringent contractual terms; risks
associated with losing or not renewing significant client relationships, or
early termination of a client agreement; the Company's ability to close new
business and fill excess capacity; consumers' concerns or adverse publicity
regarding the products of the Company's clients; higher than anticipated
start-up costs or lead times associated with new ventures or business in new
markets; execution risks associated with performance-based pricing metrics in
certain client agreements; execution risks associated with achieving targeted
annualized cost reductions; the Company's ability to find cost effective
locations, obtain favorable lease terms, and build or retrofit facilities in a
timely and economic manner; risks associated with business interruption due to
weather-related events; risks associated with attracting and retaining
cost-effective labor at the Company's customer management centers; the
possibility of additional asset impairments and restructuring charges; risks
associated with changes in foreign currency exchange rates; economic or
political changes affecting the countries in which the Company operates;
changes in accounting policies and practices promulgated by standard setting
bodies; and, new legislation or government regulation that impacts the
customer care industry.
Please refer to the Company's filings with the Securities and Exchange
Commission, including the Company's Annual Report on Form 10-K/A for the year
ended 2003 and other more recent SEC filings, for a detailed discussion of
factors discussed above and other important factors that may impact the
Company's business, results of operations, financial condition, and cash
flows. The Company assumes no obligation to update its forward-looking
statements to reflect actual results or changes in factors affecting such
forward-looking statements.
investor relations, Karen Breen, +1-303-397-8592, or Dan Campbell, +1-303-397-8634,
or public relations, Julie Lucas, +1-303-397-8555, all of TeleTech Holdings, Inc.
