SIGNATURE | ||||||||
EXHIBIT INDEX | ||||||||
Ex-99.1 Earnings release of WNS (Holdings) Limited dated February 13, 2007. |
99.1 | Earnings release of WNS (Holdings) Limited dated February 13, 2007. |
Date: February 13, 2007 |
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WNS (HOLDINGS) LIMITED |
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By: | /s/ Zubin Dubash | |||
Name: | Zubin Dubash | |||
Title: | Chief Financial Officer |
CONTACT: |
Investors: | |
Jay Venkateswaran | ||
Senior VP Investor Relations | ||
WNS (Holdings) Limited | ||
+1 212 599 6960 | ||
ir@wnsgs.com | ||
Media: | ||
Al Bellenchia | ||
The Torrenzano Group | ||
+1 212 681 1700 ext. 156 | ||
abellenchia@torrenzano.com |
| Quarterly revenue of $102.0 million, up 105.0% from the corresponding quarter last year. | |
| Quarterly revenue less repair payments of $57.2 million, up 48.8% from the corresponding quarter last year. | |
| Quarterly net income of $7.1 million, up 21.0% from the corresponding quarter last year. | |
| Quarterly net income (excluding amortization of intangible assets and share-based compensation expense) of $8.9 million, up 18.9% from the corresponding quarter last year. | |
| Quarterly basic income per ADS of 18 cents, up from 17 cents for the corresponding quarter last year. | |
| Quarterly basic income per ADS (excluding amortization of intangible assets and share-based compensation expense) of 22 cents, unchanged from the corresponding quarter last year. |
| Revenue of $241.6million, up 61.2% from the corresponding nine months last year. | |
| Revenue less repair payments of $155.6 million, up 46.2% from the corresponding nine months last year. | |
| Net income of $17.7 million, up 20.9% from the corresponding nine months last year. | |
| Net income (excluding amortization of intangible assets and share-based compensation expense) of $21.6 million, up 29.1% from the corresponding nine months last year. | |
| Basic income per ADS of 47 cents, up from 46 cents for the corresponding nine months last year. | |
| Basic income per ADS (excluding amortization of intangible assets and share-based compensation expense) of 57 cents, up from 52 cents for the corresponding nine months last year. |
| As part of a previously announced succession plan, former chairman and co-founder David Tibble will retire from the company, effective March 31, 2007. | ||
| Steve Dunning assumed Mr. Tibbles responsibilities as chairman of WNS-UK as of January 3, 2007. Mr. Dunning is a fellow co-founder of WNS and formerly worked with Mr. Tibble as managing director of WNS U.K. | ||
| Due diligence activities related to setting up an operations center in Eastern Europe is ongoing. |
| Revenue less repair payments revised upwards from the previously estimated level of slightly higher than $208 million. It is now estimated to be slightly higher than $213 million. | ||
| Net income guidance (excluding amortization of intangible assets and share-based compensation expense) remains unchanged at $30.5 million to $32.5 million. | ||
| Capital expenditure for the year also remains unchanged at approximately $26 million. |
Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Revenue |
101,999 | 49,759 | 241,615 | 149,889 | ||||||||||||
Cost of Revenue [refer to note (a) below] |
81,250 | 34,088 | 186,017 | 108,408 | ||||||||||||
Gross Profit |
20,749 | 15,671 | 55,598 | 41,481 | ||||||||||||
Operating expenses: |
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Selling, general and administrative expenses
[refer to note (b) as below] |
13,973 | 9,668 | 36,180 | 24,978 | ||||||||||||
Amortization of intangible assets |
490 | 230 | 1,441 | 349 | ||||||||||||
Operating income |
6,286 | 5,773 | 17,977 | 16,154 | ||||||||||||
Other income, net |
1,331 | 113 | 1,250 | 178 | ||||||||||||
Interest expense |
| (114) | (101) | (375) | ||||||||||||
Income before income taxes |
7,617 | 5,772 | 19,126 | 15,957 | ||||||||||||
(Provision) benefit for income taxes |
(525) | 90 | (1,418) | (1,313) | ||||||||||||
Net income |
7,092 | 5,862 | 17,708 | 14,644 | ||||||||||||
Basic income per share |
$0.18 | $0.17 | $0.47 | $0.46 | ||||||||||||
Diluted income per share |
$0.17 | $0.17 | $0.44 | $0.43 | ||||||||||||
Basic weighted average ordinary shares
outstanding |
40,067,072 | 33,705,909 | 37,869,784 | 32,121,555 | ||||||||||||
Diluted weighted average ordinary shares
outstanding |
42,664,150 | 35,140,551 | 40,546,010 | 34,300,207 | ||||||||||||
Note: |
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Includes the following share-based
compensation amounts: |
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(a) Cost of Revenue |
376 | | 530 | | ||||||||||||
(b) Selling, general and administrative expenses |
900 | 1,357 | 1,869 | 1,694 |
Reconciliation of revenue less repair payments (non-GAAP) to revenue (GAAP) | Amount in | |||||||||||||||
thousands | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Revenue less repair payments (Non-GAAP) |
57,192 | 38,435 | 155,665 | 106,461 | ||||||||||||
Add: Payments to repair centers |
44,807 | 11,324 | 85,950 | 43,428 | ||||||||||||
Revenue (GAAP) |
101,999 | 49,759 | 241,615 | 149,889 |
Reconciliation of selling, general and administrative expense excluding share-based | ||||||||||||||||
compensation expense (non-GAAP) to selling, general and administrative expenses (GAAP) | Amount in | |||||||||||||||
thousands | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Selling, general and administrative
expenses (excluding share-based
compensation expense) (Non-GAAP) |
13,073 | 8,311 | 34,311 | 23,284 | ||||||||||||
Add: Share-based compensation expense |
900 | 1,357 | 1,869 | 1,694 | ||||||||||||
Selling, general and administrative
expenses (GAAP) |
13,973 | 9,668 | 36,180 | 24,978 |
Reconciliation of operating income excluding share-based compensation and amortization of | ||||||||||||||||
intangible assets (non-GAAP) to operating income (GAAP) | Amount in | |||||||||||||||
thousands | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Operating income (excluding share-based
compensation and amortization of
intangible assets)(Non-GAAP) |
8,052 | 7,360 | 21,817 | 18,197 | ||||||||||||
Less: Share-based compensation expense |
1,276 | 1,357 | 2,399 | 1,694 | ||||||||||||
Less: Amortization of intangible assets |
490 | 230 | 1,441 | 349 | ||||||||||||
Operating income (GAAP) |
6,286 | 5,773 | 17,977 | 16,154 |
Reconciliation of net income excluding share-based compensation expense and amortization of | ||||||||||||||||
intangible assets (non-GAAP) to net income (GAAP) | Amount in | |||||||||||||||
thousands | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Net income (excluding share-based
compensation and amortization of
intangible assets) (Non-GAAP) |
8,858 | 7,449 | 21,548 | 16,687 | ||||||||||||
Less: Share-based compensation expense |
1,276 | 1,357 | 2,399 | 1,694 | ||||||||||||
Less: Amortization of intangible assets |
490 | 230 | 1,441 | 349 | ||||||||||||
Net income (GAAP) |
7,092 | 5,862 | 17,708 | 14,644 |
Reconciliation of basic income per ADS (excluding amortization of intangibles assets and share-based | ||||||||||||||||
compensation expense) to basic income per ADS (non-GAAP to GAAP) | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Basic income per ADS (excluding
amortization of intangible assets and share
based compensation expense)(Non-
GAAP) |
$0.22 | $0.22 | $0.57 | $0.52 | ||||||||||||
Less: Adjustments for amortization of
intangible assets and share-based
compensation expense |
$0.04 | $0.05 | $0.10 | $0.06 | ||||||||||||
Basic income per ADS (GAAP) |
$0.18 | $0.17 | $0.47 | $0.46 |
December 31, | March 31, | |||||||
2006 | 2006 | |||||||
(Unaudited) | ||||||||
ASSETS |
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Current assets |
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Cash and cash equivalents |
$ | 103,319 | $ | 18,549 | ||||
Accounts receivable, net of allowance of $442 and $373, respectively |
39,136 | 28,081 | ||||||
Funds held for clients |
4,553 | 3,047 | ||||||
Deferred tax assets |
| 353 | ||||||
Prepaid expenses |
3,029 | 1,225 | ||||||
Other current assets |
6,472 | 6,140 | ||||||
Total current assets |
156,509 | 57,395 | ||||||
Goodwill |
37,218 | 33,774 | ||||||
Intangible assets, net |
7,439 | 8,713 | ||||||
Property and equipment, net |
42,914 | 30,623 | ||||||
Deposits |
2,746 | 2,990 | ||||||
Deferred tax assets |
1,666 | 1,308 | ||||||
TOTAL ASSETS |
$ | 248,492 | $ | 134,803 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
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Current liabilities |
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Accounts payable |
$ | 19,051 | $ | 23,074 | ||||
Accrued employee costs |
15,357 | 11,336 | ||||||
Deferred revenue |
11,016 | 8,994 | ||||||
Income taxes payable |
589 | 726 | ||||||
Obligations under capital leases current |
26 | 184 | ||||||
Deferred tax liabilities |
1,376 | 368 | ||||||
Other current liabilities |
16,116 | 8,781 | ||||||
Total current liabilities |
63,531 | 53,463 | ||||||
Obligation under capital leases non current |
| 2 | ||||||
Deferred rent |
976 | 824 | ||||||
Deferred tax liabilities non current |
531 | 2,350 | ||||||
Shareholders equity: |
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Preference shares, $0.20 (10 pence) par value Authorized: 1,000,000 shares and
none, respectively, Issued and outstanding none |
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Ordinary shares, $0.20 (10 pence) par value Authorized: 50,000,000 shares and
40,000,000 shares, respectively |
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Issued and outstanding: 40,238,516 and 35,321,511 shares, respectively |
6,204 | 5,290 | ||||||
Additional paid-in-capital |
143,574 | 62,228 | ||||||
Ordinary shares subscribed, 16,998 and 4,346 shares, respectively |
52 | 10 | ||||||
Retained earnings |
21,812 | 4,104 | ||||||
Deferred share-based compensation |
(57 | ) | (582 | ) | ||||
Accumulated other comprehensive income |
11,869 | 7,114 | ||||||
Total shareholders equity |
183,454 | 78,164 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
$ | 248,492 | $ | 134,803 | ||||