10-K
TTEC HOLDINGS, INC. filed this Form 10-K on 03/06/2019
Entire Document
 

Cash Flows from Financing Activities

For the years 2018,  2017 and 2016, we reported net cash flows  (used in) provided by financing activities of $(102.1) million, $71.6 million and $(1.6) million, respectively. The change in net cash flows from 2017 to 2018 was primarily due to a  $188.7 million decrease in borrowing on the Credit Facility, offset by a $18.3 million decrease in purchases of our outstanding common stock.  The change in net cash flows from 2016 to 2017 was primarily due to a $9.4 million increase in borrowing on the Credit Facility, a decrease in the contingent consideration and hold-back payments of $8.1 million, offset by a $56.4 million decrease in purchases of our outstanding common stock and a $4.1 million payment to purchase a non-controlling interest.

Free Cash Flow

Free cash flow (see “Presentation of Non-GAAP Measurements” below for the definition of free cash flow) was $124.9 million, $61.2 million and $61.0 million for the years 2018,  2017 and 2016, respectively. The increase from 2017 to 2018 was primarily due to the increase in cash flows provided by operating activities. The increase from 2016 to 2017 was primarily due to the increase in cash flows provided by operating activities.

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):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

    

    

2018

    

2017

 

2016

 

Net cash provided by operating activities

 

 

$

168,345

 

$

113,152

 

$

111,830

 

Less: Purchases of property, plant and equipment

 

 

 

43,450

 

 

51,958

 

 

50,832

 

Free cash flow

 

 

$

124,895

 

$

61,194

 

$

60,998

 

 

 

39