TELUS International(TIXT) - 2021 Q4 - Annual Report

Financial Performance - Net income for 2021 was $78 million, with diluted EPS of $0.29, down from $103 million and $0.46 in the prior year; adjusted net income increased by 67% year-over-year to $267 million[8]. - Adjusted EBITDA for 2021 was $540 million, a 38% increase from $391 million in the prior year, with an adjusted EBITDA margin of 24.6%[8]. - Revenue for 2021 reached $2,194 million, up 38.8% from $1,582 million in 2020[23]. - Operating income for 2021 was $185 million, compared to $121 million in 2020[23]. - Adjusted EBITDA for the twelve months ended December 31, 2021, increased to $540 million, up 38.2% from $391 million in 2020[29]. - Cash provided by operating activities for the twelve months ended December 31, 2021, was $282 million, compared to $263 million in 2020, reflecting a 7.2% increase[29]. - Free cash flow for the twelve months ended December 31, 2021, was $181 million, slightly down from $189 million in 2020[29]. - The company reported an adjusted diluted earnings per share of $1.00 for the twelve months ended December 31, 2021, compared to $0.71 in 2020, an increase of 40.8%[29]. Future Projections - The company expects revenue for 2022 to be in the range of $2,550 to $2,600 million, representing growth of 16.2% to 18.5% on a reported basis[9]. - Adjusted diluted EPS for 2022 is projected to be between $1.18 and $1.23[9]. Debt and Cash Management - The net debt to adjusted EBITDA leverage ratio improved to 2.1x as of December 31, 2021, down from 4.1x a year earlier[8]. - Long-term debt decreased significantly from $1,674 million in 2020 to $820 million in 2021, a reduction of 51%[24]. - The net debt to adjusted EBITDA leverage ratio improved from 4.1 in 2020 to 2.1 in 2021, indicating better financial health[30]. - Cash and cash equivalents at the end of the period were $115 million, down from $153 million in 2020, a decrease of 25%[28]. Expenses and Cost Management - Salaries and benefits expenses for 2021 totaled $1,222 million, up from $947 million in 2020[23]. - Free cash flow for 2021 was $181 million, slightly down from $189 million in the prior year, attributed to increased capital expenditures[8]. Strategic Focus - The company is focused on expanding services to existing clients and attracting new clients as part of its growth strategy[19]. - TELUS International's services support the full lifecycle of clients' digital transformation journeys, indicating a focus on market expansion and innovation[32]. Asset Management - Total assets decreased from $3,695 million in 2020 to $3,626 million in 2021, a decline of 1.9%[24]. - Net income for the twelve months ended December 31, 2021, was $78 million, down 24.3% from $103 million in 2020[28].