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TELUS International(TIXT) - 2022 Q4 - Annual Report
TIXTTELUS International(TIXT)2023-02-09 12:01

Financial Performance - Adjusted EBITDA was 157million,up10157 million, up 10% from 143 million in the same quarter of the prior year, with an Adjusted EBITDA Margin of 24.9%, an increase from 23.8%[10] - Revenue of 2,468million,up2,468 million, up 274 million or 12% year-over-year, despite a 4% unfavorable foreign currency impact[10] - Net income of 183millionanddilutedEPSof183 million and diluted EPS of 0.68, compared to 78millionand78 million and 0.29 in the prior year, with Adjusted Net Income at 332million,a24332 million, a 24% increase year-over-year[10] - Cash provided by operating activities was 437 million, up 41% from 311millionintheprioryear,andFreeCashFlowwas311 million in the prior year, and Free Cash Flow was 333 million, up 59% from 210million[10]−RevenueforQ42022was210 million[10] - Revenue for Q4 2022 was 630 million, a 5% increase from 600millioninQ42021;totalrevenuefor2022reached600 million in Q4 2021; total revenue for 2022 reached 2,468 million, up 12% from 2,194millionin2021[28]−NetincomeforQ42022was2,194 million in 2021[28] - Net income for Q4 2022 was 34 million, slightly down from 36millioninQ42021;totalnetincomefor2022was36 million in Q4 2021; total net income for 2022 was 183 million, compared to 78millionin2021[28]−AdjustedEBITDAforQ42022was78 million in 2021[28] - Adjusted EBITDA for Q4 2022 was 157 million, up from 143millioninQ42021;totaladjustedEBITDAfor2022was143 million in Q4 2021; total adjusted EBITDA for 2022 was 607 million, compared to 540millionin2021[35]−Thecompanyreportedafreecashflowof540 million in 2021[35] - The company reported a free cash flow of 60 million for Q4 2022, an increase from 37millioninQ42021;totalfreecashflowfor2022was37 million in Q4 2021; total free cash flow for 2022 was 333 million, compared to 210millionin2021[36]−OperatingincomeforQ42022was210 million in 2021[36] - Operating income for Q4 2022 was 61 million, compared to 63millioninQ42021;totaloperatingincomefor2022was63 million in Q4 2021; total operating income for 2022 was 284 million, up from 185millionin2021[28]FutureOutlook−Full−year2023revenueoutlookisbetween185 million in 2021[28] Future Outlook - Full-year 2023 revenue outlook is between 2,970 million and 3,030million,including3,030 million, including 255 to 260millionfromWillowTree,representinggrowthof20.3260 million from WillowTree, representing growth of 20.3% to 22.8%[11] - Adjusted EBITDA for 2023 is projected to be in the range of 705 to 725million,representinggrowthof16725 million, representing growth of 16% to 19%[11] - Adjusted Diluted EPS for 2023 is expected to be between 1.20 and 1.25,reflectinghigherinterestchargesassociatedwiththeWillowTreeacquisition[11]−Thecompanyanticipatescontinuedgrowthdrivenbybusinessexpansionandoperationalefficienciesdespitepotentialeconomicchallenges[22]DebtandLeverage−NetDebttoAdjustedEBITDALeverageRatiowas1.1xasofDecember31,2022,improvedfrom2.1xasofDecember31,2021,butincreasedto2.9xpost−WillowTreeacquisition[10]−ThenetdebttoadjustedEBITDAleverageratioimprovedto1.1asofDecember31,2022,downfrom2.1asofDecember31,2021[37]TeamandCommunityImpact−Teammembercountwas73,142asofDecember31,2022,anincreaseof181.25, reflecting higher interest charges associated with the WillowTree acquisition[11] - The company anticipates continued growth driven by business expansion and operational efficiencies despite potential economic challenges[22] Debt and Leverage - Net Debt to Adjusted EBITDA Leverage Ratio was 1.1x as of December 31, 2022, improved from 2.1x as of December 31, 2021, but increased to 2.9x post-WillowTree acquisition[10] - The net debt to adjusted EBITDA leverage ratio improved to 1.1 as of December 31, 2022, down from 2.1 as of December 31, 2021[37] Team and Community Impact - Team member count was 73,142 as of December 31, 2022, an increase of 18% year-over-year[10] - Since 2007, TELUS International has positively impacted over 1.2 million citizens globally through community initiatives[40] - The company has allocated 5.1 million in funding to grassroots charitable organizations since 2011[40] Company Services - TELUS International provides next-generation digital solutions to enhance customer experience for global brands[39] - The company supports the full lifecycle of clients' digital transformation journeys, enabling quicker adoption of digital technologies[39] - TELUS International's integrated solutions include digital strategy, IT lifecycle management, and end-to-end AI data solutions[39] Assets and Cash Position - Cash and cash equivalents at the end of Q4 2022 were 125million,upfrom125 million, up from 115 million at the end of Q4 2021[29] - Total assets decreased to 3,556millionasofDecember31,2022,from3,556 million as of December 31, 2022, from 3,626 million as of December 31, 2021[29] Foreign Exchange Impact - The company experienced a foreign exchange loss of 18millioninQ42022,comparedtoagainof18 million in Q4 2022, compared to a gain of 2 million in Q4 2021[28] Earnings Per Share - Basic earnings per share for Q4 2022 were 0.13,downfrom0.13, down from 0.14 in Q4 2021; diluted earnings per share remained at $0.13 for both quarters[28]