SIGNATURE | ||||||||
EXHIBIT INDEX | ||||||||
EX-99.1 Earnings release of WNS (Holdings) Limited dated February 5, 2009. |
99.1 | Earnings release of WNS (Holdings) Limited dated February 5, 2009. |
WNS (HOLDINGS) LIMITED |
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By: | /s/ Alok Misra | |||
Name: | Alok Misra | |||
Title: | Group Chief Financial Officer |
Page 1 of 10
| Quarterly revenue of $134.0 million, up 15.9% from the corresponding quarter last year. |
| Quarterly revenue less repair payments of $99.6 million, up 34.5% from the corresponding quarter last year. |
| Quarterly net income including minority interest of $2.1 million compared to $5.5 million from the corresponding quarter last year. |
| Quarterly adjusted net income (or net income excluding amortization of intangible assets, share-based compensation, related fringe benefit taxes and minority interest share of loss) of $12.9 million, up 59.8% from the corresponding quarter last year. |
| Quarterly basic income per ADS of $0.05, compared with $0.13 for the corresponding quarter last year. |
| Quarterly adjusted basic income per ADS (or income per share excluding amortization of intangible assets, share-based compensation, related fringe benefit taxes and minority interest share of loss) of $0.30, up from $0.19 for the corresponding quarter last year. |
| Contract renewal for three years with extension options with Centrica, WNSs third largest client, to provide support for customer service for its subsidiaries, British Gas and Direct Energy. |
| Contract renewal for six years with SAS Airlines, the largest airline company in Scandinavia, to deliver passenger revenue accounting processes. |
| Contract renewal for five years with SITA, a global specialist in air transport communication and information technology solutions, to enhance supply chain management and customer service. |
| On January 27, 2009, WNS announced that Neeraj Bhargava will transition into the role of Strategic Advisor. Mr. Bhargava will remain in his current role as CEO and Board member until a successor transitions into the CEO position. |
| Revenue less repair payments is expected to be between $385 million and $400 million. This assumes an average USD to GBP range of 1.45 to 1.60 for the remainder of the year. |
| Adjusted net income (or net income excluding amortization of intangible assets, share-based compensation, related fringe benefit taxes and minority interest share of loss) is expected to range between $46 million and $49 million. |
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Investors: | Media: | |
Alan Katz VP Investor Relations WNS (Holdings) Limited +1 212 599-6960 ext. 241 ir@wnsgs.com |
Josh Passman CJP Communications +1 212 279 3115 ext. 203 jpassman@cjpcom.com |
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Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(Amount in thousands) | ||||||||||||||||
Revenue less repair payments (Non-GAAP) |
$ | 99,607 | $ | 74,056 | $ | 290,831 | $ | 215,564 | ||||||||
Add: Payments to repair centers |
34,403 | 41,589 | 115,920 | 128,182 | ||||||||||||
Revenue (GAAP) |
$ | 134,010 | $ | 115,645 | $ | 406,751 | $ | 343,746 | ||||||||
Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(Amount in thousands) | ||||||||||||||||
Cost of revenue (Non-GAAP) |
$ | 62,627 | $ | 50,272 | $ | 194,509 | $ | 146,354 | ||||||||
Add: Payments to repair centers |
34,403 | 41,589 | 115,920 | 128,182 | ||||||||||||
Cost of revenue (GAAP) |
$ | 97,030 | $ | 91,862 | $ | 310,429 | $ | 274,536 | ||||||||
Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(Amount in thousands) | ||||||||||||||||
Selling, general and administrative
expenses (excluding share-based
compensation expense and
FBT1) (Non-GAAP) |
$ | 16,206 | $ | 16,653 | $ | 50,439 | $ | 47,367 | ||||||||
Add: Share-based compensation expense |
2,612 | 892 | 7,349 | 3,056 | ||||||||||||
Add: FBT1 |
84 | 232 | 615 | 859 | ||||||||||||
Selling, general and administrative
expenses (GAAP) |
$ | 18,902 | $ | 17,777 | $ | 58,403 | $ | 51,282 | ||||||||
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. |
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Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(Amount in thousands) | ||||||||||||||||
Operating income (excluding amortization and
impairment of goodwill and intangible assets,
share-based compensation and FBT1)
(Non-GAAP) |
$ | 21,667 | $ | 7,724 | $ | 48,564 | $ | 23,696 | ||||||||
Less: Amortization of intangible assets |
7,419 | 897 | 16,900 | 2,205 | ||||||||||||
Less: Impairment of goodwill and intangible assets |
| | | 15,464 | ||||||||||||
Less: Share-based compensation expense |
3,505 | 1,486 | 10,030 | 4,909 | ||||||||||||
Less: FBT1 |
84 | 232 | 615 | 859 | ||||||||||||
Operating (loss) income (GAAP) |
$ | 10,659 | $ | 5,109 | $ | 21,019 | $ | 259 | ||||||||
Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(Amount in thousands) | ||||||||||||||||
Net income (excluding amortization and impairment
of goodwill and intangible assets, share-based
compensation, FBT1 and minority
interest share of loss) (Non-GAAP) |
$ | 12,894 | $ | 8,069 | $ | 32,997 | $ | 26,877 | ||||||||
Less: Amortization of intangible assets |
7,419 | 897 | 16,900 | 2,205 | ||||||||||||
Less: Impairment of goodwill and intangible assets |
| | | 15,464 | ||||||||||||
Less: Share-based compensation expense |
3,505 | 1,486 | 10,030 | 4,909 | ||||||||||||
Less: FBT1 |
84 | 232 | 615 | 859 | ||||||||||||
Add: Minority interest share of loss |
180 | | 180 | | ||||||||||||
Net income (GAAP) |
$ | 2,066 | $ | 5,454 | $ | 5,632 | $ | 3,440 | ||||||||
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. |
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Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Basic income per ADS
(excluding amortization
and impairment of
goodwill and intangible
assets, share-based
compensation,
FBT1 and
minority interest share of
loss) (Non-GAAP) |
$ | 0.30 | $ | 0.19 | $ | 0.78 | $ | 0.64 | ||||||||
Less: Adjustments for
amortization and
impairment of goodwill and
intangible assets,
share-based compensation,
FBT1 and
minority interest share of
loss |
0.25 | 0.06 | 0.65 | 0.56 | ||||||||||||
Basic income per ADS (GAAP) |
$ | 0.05 | $ | 0.13 | $ | 0.13 | $ | 0.08 | ||||||||
Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Diluted income per ADS (excluding
amortization and impairment of
goodwill and intangible assets,
share-based compensation,
FBT1 and minority
interest share of loss) (Non-GAAP) |
$ | 0.30 | $ | 0.19 | $ | 0.76 | $ | 0.63 | ||||||||
Less: Adjustments for amortization
and impairment of goodwill and
intangible assets, share-based
compensation, FBT1 and
minority interest share of loss |
0.25 | 0.06 | 0.63 | 0.55 | ||||||||||||
Diluted income/(loss) per ADS (GAAP) |
$ | 0.05 | $ | 0.13 | $ | 0.13 | $ | 0.08 | ||||||||
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. |
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Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Revenue |
||||||||||||||||
Third parties |
$ | 133,289 | $ | 114,781 | $ | 404,250 | $ | 341,268 | ||||||||
Related parties |
721 | 864 | 2,501 | 2,478 | ||||||||||||
134,010 | 115,645 | 406,751 | 343,746 | |||||||||||||
Cost of revenue |
97,030 | 91,862 | 310,429 | 274,536 | ||||||||||||
Gross profit |
36,980 | 23,783 | 96,322 | 69,210 | ||||||||||||
Operating expenses |
||||||||||||||||
Selling, general and administrative expenses |
18,902 | 17,777 | 58,403 | 51,282 | ||||||||||||
Amortization of intangible assets |
7,419 | 897 | 16,900 | 2,205 | ||||||||||||
Impairment of goodwill and intangible assets |
| | | 15,464 | ||||||||||||
Operating income |
10,659 | 5,109 | 21,019 | 259 | ||||||||||||
Other (expense) income, net |
(4,113 | ) | 2,052 | (5,901 | ) | 6,963 | ||||||||||
Interest expense |
(3,955 | ) | (21 | ) | (7,322 | ) | (23 | ) | ||||||||
Income before income taxes |
2,591 | 7,140 | 7,796 | 7,199 | ||||||||||||
Provision for income taxes |
(705 | ) | (1,686 | ) | (2,344 | ) | (3,759 | ) | ||||||||
Income before minority interests |
1,886 | 5,454 | 5,452 | 3,440 | ||||||||||||
Minority interest share of loss |
180 | | 180 | | ||||||||||||
Net income |
$ | 2,066 | $ | 5,454 | 5,632 | $ | 3,440 | |||||||||
Basic income per share |
$ | 0.05 | $ | 0.13 | $ | 0.13 | $ | 0.08 | ||||||||
Diluted income per share |
$ | 0.05 | $ | 0.13 | $ | 0.13 | $ | 0.08 |
Page 7 of 10
December 31 | March 31 | |||||||
2008 | 2008 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 36,628 | $ | 102,698 | ||||
Bank deposits and marketable securities |
| 8,074 | ||||||
Accounts receivable, net of allowance of $1,895 and $1,784, respectively |
62,221 | 47,302 | ||||||
Accounts receivable related parties |
47 | 586 | ||||||
Funds held for clients |
4,909 | 6,473 | ||||||
Employee receivables |
1,126 | 1,179 | ||||||
Prepaid expenses |
4,440 | 3,776 | ||||||
Prepaid income taxes |
3,256 | 2,776 | ||||||
Deferred tax assets current |
672 | 618 | ||||||
Foreign currency derivative contracts current |
10,184 | | ||||||
Other current assets |
17,959 | 8,596 | ||||||
Total current assets |
141,442 | 182,078 | ||||||
Goodwill |
85,093 | 87,470 | ||||||
Intangible assets, net |
227,418 | 9,393 | ||||||
Property, plant and equipment, net |
54,014 | 50,840 | ||||||
Other assets non current |
2,719 | 1,278 | ||||||
Deposits |
8,420 | 7,391 | ||||||
Deferred tax assets non current |
16,129 | 8,055 | ||||||
TOTAL ASSETS |
$ | 535,235 | $ | 346,505 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 22,905 | $ | 15,562 | ||||
Accounts payable related parties |
| 6 | ||||||
Long term debt current |
20,000 | | ||||||
Short term line of credit |
5,511 | | ||||||
Accrued employee costs |
25,215 | 26,848 | ||||||
Deferred revenue current |
6,326 | 7,790 | ||||||
Income taxes payable |
4,693 | 1,879 | ||||||
Deferred tax liabilities current |
1,489 | 211 | ||||||
Accrual for earn-out payment |
| 33,699 | ||||||
Other current liabilities |
35,882 | 25,806 | ||||||
Total current liabilities |
122,021 | 111,801 | ||||||
Long term debt non current |
180,000 | | ||||||
Deferred revenue non current |
3,134 | 1,549 | ||||||
Deferred rent |
2,301 | 2,627 | ||||||
Accrued pension liability |
2,152 | 1,544 | ||||||
Deferred tax liabilities non current |
10,709 | 1,834 | ||||||
Liability on outstanding derivative and interest swap contracts non current |
11,818 | | ||||||
TOTAL LIABILITIES |
332,135 | 119,355 | ||||||
Minority interest |
120 | | ||||||
Shareholders equity: |
Page 8 of 10
December 31 | March 31 | |||||||
2008 | 2008 | |||||||
(Unaudited) | ||||||||
Ordinary shares, $0.16 (10 pence) par value, authorized: 50,000,000 shares; Issued and outstanding: 42,582,566 and 42,363,100 shares, respectively |
6,664 | 6,622 | ||||||
Additional paid-in capital |
180,182 | 167,459 | ||||||
Ordinary shares subscribed: Nil and 1,666 shares, respectively |
| 10 | ||||||
Retained earnings |
44,471 | 38,839 | ||||||
Accumulated other comprehensive (loss) income |
(28,337 | ) | 14,220 | |||||
Total shareholders equity |
202,980 | 227,150 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
$ | 535,235 | $ | 346,505 | ||||
Page 9 of 10
Nine months ended | ||||||||
December 31, | ||||||||
2008 | 2007 | |||||||
Cash flows from operating activities |
||||||||
Net cash provided by operating activities |
$ | 40,441 | $ | 20,730 | ||||
Cash flows from investing activities |
||||||||
Acquisitions, net of cash received |
(291,225 | ) | (34,815 | ) | ||||
Facility and property cost |
(16,800 | ) | (21,725 | ) | ||||
Proceeds from sale of assets, net |
219 | 101 | ||||||
Transfer of delivery centre to AVIVA |
| 1,570 | ||||||
Marketable securities and deposits |
7,687 | 12,000 | ||||||
Net cash used in investing activities |
(300,119 | ) | (42,869 | ) | ||||
Cash flows from financing activities |
||||||||
Proceeds from exercise of stock options |
1,103 | 1,851 | ||||||
Excess tax benefits from share-based compensation |
1,544 | 1,987 | ||||||
Proceeds from long term debt, net |
199,438 | | ||||||
Initial Public Offering expenses |
| (150 | ) | |||||
Short term borrowing availed |
7,980 | | ||||||
Short term borrowing repaid |
(9,244 | ) | | |||||
Principal payments under capital leases |
(182 | ) | (7 | ) | ||||
Net cash provided by financing activities |
200,640 | 3,681 | ||||||
Effect of exchange rate changes on cash and cash equivalents |
(7,032 | ) | 2,643 | |||||
Net change in cash and cash equivalents |
(66,070 | ) | (15,815 | ) | ||||
Cash and cash equivalents at beginning of period |
102,698 | 112,340 | ||||||
Cash and cash equivalents at end of period |
$ | 36,628 | $ | 96,525 | ||||
Page 10 of 10