SIGNATURE | ||||||||
EXHIBIT INDEX | ||||||||
EX-99.1 Earnings release of WNS (Holdings) Limited dated November 13, 2008. |
Exhibit | |
99.1
|
Earnings release of WNS (Holdings) Limited dated November 13, 2008. |
WNS (HOLDINGS) LIMITED |
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By: | /s/ Alok Misra | |||
Name: | Alok Misra | |||
Title: | Group Chief Financial Officer |
| Quarterly revenue of $149.8 million, up 29.6% from the corresponding quarter last year. | |
| Quarterly revenue less repair payments of $109.0 million, up 52.0% from the corresponding quarter last year. | |
| Quarterly net income of $0.2 million against a net loss of $10.5 million from the corresponding quarter last year. | |
| Quarterly adjusted net income (or, net income excluding amortization and impairment of goodwill and intangible assets, share-based compensation, and related fringe benefit taxes) of $11.9 million, up 47.6% from the corresponding quarter last year. | |
| Quarterly basic income per ADS of $0.01, up from basic loss per share of $0.25 for the corresponding quarter last year. | |
| Quarterly adjusted basic income per ADS (or, basic income per share excluding amortization and impairment of goodwill and intangible assets, share-based compensation, and related fringe benefit taxes) of $0.28, up from $0.19 for the corresponding quarter last year. |
| The acquisition of AGS, the business process offshoring company servicing Aviva, and an eight year and four month Master Services Agreement, naming WNS as the long-term strategic BPO services provider to Avivas UK, and Canadian businesses. | |
| The appointment of Karthik Sarma as Chief People Officer, who will focus on attracting, retaining and developing high quality talent for the WNS organization. |
| Revenue less repair payments is expected to be between $385 million and $400 million (down from the previously announced $425 million to $435 million). This assumes a USD to GBP range of 1.45 to 1.60. | |
| Net income (excluding amortization and impairment of goodwill and intangible assets, share-based compensation, and related fringe benefit taxes) is still expected to remain between $46 million and $49 million. |
CONTACT: |
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Investors:
|
Media: | |
Alan Katz
|
Aquin Dennison | |
VP Investor Relations
|
Gutenberg Communications | |
WNS (Holdings) Limited
|
+1 917 664 7235 | |
+1 212 599-6960 ext. 241
|
aquin@gutenbergpr.com | |
ir@wnsgs.com |
Amount in thousands |
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Three months ended | Six months ended | |||||||||||||||
September 30, 2008 |
September 30, 2007 |
September 30, 2008 |
September 30, 2007 |
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Revenue less repair payments (Non-GAAP) |
$ | 109,004 | $ | 71,736 | $ | 191,224 | $ | 141,508 | ||||||||
Add: Payments to repair centers |
40,793 | 43,843 | 81,517 | 86,593 | ||||||||||||
Revenue (GAAP) |
$ | 149,797 | $ | 115,579 | $ | 272,741 | $ | 228,101 |
Amount in thousands |
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Three months ended | Six months ended | |||||||||||||||
September 30, 2008 |
September 30, 2007 |
September 30, 2008 |
September 30, 2007 |
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Cost of revenue (Non-GAAP) |
$ | 74,119 | $ | 48,625 | $ | 131,882 | $ | 96,081 | ||||||||
Add: Payments to repair centers |
40,793 | 43,843 | 81,517 | 86,593 | ||||||||||||
Cost of revenue (GAAP) |
$ | 114,912 | $ | 92,469 | $ | 213,399 | $ | 182,674 |
Amount in thousands |
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Three months ended | Six months ended | |||||||||||||||
September 30, 2008 |
September 30, 2007 |
September 30, 2008 |
September 30, 2007 |
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Selling, general and administrative
expenses (excluding share-based
compensation expense and
FBT1) (Non-GAAP) |
$ | 18,671 | $ | 16,981 | $ | 34,233 | $ | 30,713 | ||||||||
Add: Share-based compensation expense |
2,471 | 1,175 | 4,736 | 2,164 | ||||||||||||
Add: FBT1 |
162 | 627 | 531 | 627 | ||||||||||||
Selling, general and administrative
expenses (GAAP) |
$ | 21,304 | $ | 18,783 | $ | 39,500 | $ | 33,504 |
1 | FBT means the fringe benefit taxes on options and restricted share units granted to employees under the WNS 2002 Stock Incentive Plan and the WNS 2006 Incentive Award Plan (as applicable) payable by WNS to the government of India. |
Amount in thousands |
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Three months ended | Six months ended | |||||||||||||||
September 30, 2008 |
September 30, 2007 |
September 30, 2008 |
September 30, 2007 |
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Operating income (excluding
amortization and impairment of
goodwill and intangible assets,
share-based compensation and
FBT1) (Non-GAAP) |
$ | 17,204 | $ | 6,873 | $ | 26,898 | $ | 15,972 | ||||||||
Less: Amortization of intangible assets |
8,012 | 479 | 9,481 | 1,308 | ||||||||||||
Less: Impairment of goodwill and
intangible assets |
| 15,465 | | 15,465 | ||||||||||||
Less: Share-based compensation expense |
3,461 | 1,918 | 6,525 | 3,423 | ||||||||||||
Less: FBT1 |
162 | 627 | 531 | 627 | ||||||||||||
Operating (loss) income (GAAP) |
$ | 5,569 | $ | (11,616 | ) | $ | 10,361 | $ | (4,850 | ) |
Amount in thousands |
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Three months ended | Six months ended | |||||||||||||||
September 30, 2008 |
September 30, 2007 |
September 30, 2008 |
September 30, 2007 |
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Net income (excluding amortization and
impairment of goodwill and intangible
assets, share-based compensation and
FBT1) (Non-GAAP) |
$ | 11,862 | $ | 8,035 | $ | 20,104 | $ | 18,807 | ||||||||
Less: Amortization of intangible assets |
8,012 | 479 | 9,481 | 1,308 | ||||||||||||
Less: Impairment of goodwill and
intangible assets |
| 15,465 | | 15,465 | ||||||||||||
Less: Share-based compensation expense |
3,461 | 1,918 | 6,525 | 3,423 | ||||||||||||
Less: FBT1 |
162 | 627 | 531 | 627 | ||||||||||||
Net income (GAAP) |
$ | 227 | $ | (10,454 | ) | $ | 3,567 | $ | (2,015 | ) |
1 | FBT means the fringe benefit taxes on options and restricted share units granted to employees under the WNS 2002 Stock Incentive Plan and the WNS 2006 Incentive Award Plan (as applicable) payable by WNS to the government of India. |
Three months ended | Six months ended | |||||||||||||||
September 30, 2008 |
September 30, 2007 |
September 30, 2008 |
September 30, 2007 |
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Basic income per ADS
(excluding amortization
and impairment of goodwill
and intangible assets,
share-based compensation
and FBT1)
(Non-GAAP) |
$ | 0.28 | $ | 0.19 | $ | 0.47 | $ | 0.45 | ||||||||
Less: Adjustments for
amortization and
impairment of goodwill and
intangible assets,
share-based compensation
and FBT1 |
0.27 | 0.44 | 0.39 | 0.50 | ||||||||||||
Basic income per ADS (GAAP) |
$ | 0.01 | $ | (0.25 | ) | $ | 0.08 | $ | (0.05 | ) |
Three months ended | Six months ended | |||||||||||||||
September 30, 2008 |
September 30, 2007 |
September 30, 2008 |
September 30, 2007 |
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Diluted income per ADS ( excluding
amortization and impairment of
goodwill and intangible assets,
share-based compensation and
FBT1) (Non-GAAP) |
$ | 0.27 | $ | 0.19 | $ | 0.46 | $ | 0.44 | ||||||||
Less: Adjustments for amortization
and impairment of goodwill and
intangible assets, share-based
compensation and FBT1 |
0.26 | 0.44 | 0.38 | 0.49 | ||||||||||||
Diluted income/(loss) per ADS (GAAP) |
$ | 0.01 | $ | (0.25 | ) | $ | 0.08 | $ | (0.05 | ) |
1 | FBT means the fringe benefit taxes on options and restricted share units granted to employees under the WNS 2002 Stock Incentive Plan and the WNS 2006 Incentive Award Plan (as applicable) payable by WNS to the government of India. |
Three months ended | Six months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Revenue |
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Third parties |
$ | 148,925 | $ | 114,679 | $ | 270,961 | $ | 226,487 | ||||||||
Related parties |
872 | 899 | 1,780 | 1,614 | ||||||||||||
149,797 | 115,578 | 272,741 | 228,101 | |||||||||||||
Cost of revenue |
114,912 | 92,468 | 213,399 | 182,674 | ||||||||||||
Gross profit |
34,885 | 23,110 | 59,342 | 45,427 | ||||||||||||
Operating expenses |
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Selling, general and administrative expenses |
21,304 | 18,782 | 39,500 | 33,504 | ||||||||||||
Amortization of intangible assets |
8,012 | 479 | 9,481 | 1,308 | ||||||||||||
Impairment of goodwill and intangible assets |
| 15,465 | | 15,465 | ||||||||||||
Operating income (loss) |
5,569 | (11,616 | ) | 10,361 | (4,850 | ) | ||||||||||
Other income (expense), net |
(275 | ) | 2,222 | (1,788 | ) | 4,908 | ||||||||||
Interest expense |
(3,220 | ) | | (3,367 | ) | | ||||||||||
Income (loss) before income taxes |
2,074 | (9,394 | ) | 5,206 | 58 | |||||||||||
Provision for income taxes |
(1,847 | ) | (1,060 | ) | (1,639 | ) | (2,073 | ) | ||||||||
Net income (loss) |
$ | 227 | $ | (10,454 | ) | 3,567 | $ | (2,015 | ) | |||||||
Basic (loss) income per share |
$ | 0.01 | $ | (0.25 | ) | $ | 0.08 | $ | (0.05 | ) | ||||||
Diluted income (loss) per share |
$ | 0.01 | $ | (0.25 | ) | $ | 0.08 | $ | (0.05 | ) |
As of September 30, 2008 | As of March 31, 2008 | |||||||
(Unaudited) | ||||||||
ASSETS |
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Current assets |
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Cash and cash equivalents |
$ | 31,328 | $ | 102,698 | ||||
Bank deposits |
| 8,074 | ||||||
Accounts receivable, net of allowance of $2,107 and $1,741,
respectively |
86,418 | 47,302 | ||||||
Accounts receivable related parties |
113 | 586 | ||||||
Funds held for clients |
5,118 | 6,473 | ||||||
Employee receivable |
1,963 | 1,179 | ||||||
Prepaid expenses |
4,393 | 3,776 | ||||||
Prepaid income taxes |
3,214 | 2,776 | ||||||
Deferred tax assets current |
538 | 618 | ||||||
Other current assets |
17,549 | 8,596 | ||||||
Total current assets |
150,635 | 182,078 | ||||||
Goodwill |
96,596 | 87,470 | ||||||
Intangible assets, net |
243,487 | 9,393 | ||||||
Property and equipment, net |
48,891 | 50,840 | ||||||
Deferred contract costs non current |
1,440 | 1,278 | ||||||
Foreign
currency derivative contracts non current |
779 | | ||||||
Deposits |
7,646 | 7,391 | ||||||
Deferred tax assets non current |
14,657 | 8,055 | ||||||
TOTAL ASSETS |
$ | 564,131 | $ | 346,505 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
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Current liabilities |
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Accounts payable |
$ | 31,599 | 15,562 | |||||
Accounts payable related parties |
| 6 | ||||||
Long term debt current |
20,000 | | ||||||
Short term line of credit |
8,463 | | ||||||
Short term line of credit related parties |
6,336 | | ||||||
Accrued employee costs |
24,108 | 26,848 | ||||||
Deferred revenue current |
12,583 | 7,790 | ||||||
Income taxes payable |
3,425 | 1,879 | ||||||
Deferred tax liabilities current |
1,800 | 211 | ||||||
Accrual for earn-out payment |
| 33,699 | ||||||
Liability on
outstanding derivative and interest swap contracts current |
14,366 | | ||||||
Other current liabilities |
40,243 | 25,806 | ||||||
Total current liabilities |
162,923 | 111,801 | ||||||
Long term debt non current |
180,000 | | ||||||
Deferred revenue non current |
2,143 | 1,549 | ||||||
Deferred rent |
3,662 | 2,627 | ||||||
Accrued pension liability |
1,965 | 1,544 | ||||||
Deferred tax liabilities non current |
11,139 | 1,834 | ||||||
Liability on
outstanding derivative and interest swap contracts non current |
3,214 | | ||||||
365,046 | 119,355 | |||||||
Shareholders equity: |
||||||||
Ordinary shares, $0.16 (£0.10) par value; Authorized 50,000,000
shares Issued and outstanding: 42,569,239 and 42,363,100 shares, respectively |
6,662 | 6,622 | ||||||
Additional paid-in-capital |
176,155 | 167,459 | ||||||
Ordinary
shares subscribed, nil and 1,666 shares, respectively |
| 10 | ||||||
Retained earnings |
42,472 | 38,839 | ||||||
Accumulated
other comprehensive income (loss) |
(26,204 | ) | 14,220 | |||||
Total shareholders equity |
199,085 | 227,150 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
$ | 564,131 | $ | 346,505 | ||||