SIGNATURE | ||||||||
EXHIBIT INDEX | ||||||||
Ex-99.1 Earnings release of WNS (Holdings) Limited dated May 7, 2009. |
99.1 | Earnings release of WNS (Holdings) Limited dated May 7, 2009. |
WNS (HOLDINGS) LIMITED |
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By: | /s/ Alok Misra | |||
Name: | Alok Misra | |||
Title: | Group Chief Financial Officer |
| Quarterly revenue of $132.5 million, up 14.1% from the corresponding quarter last year. |
| Quarterly revenue less repair payments of $95.5 million, up 27.1% from the corresponding quarter last year. |
| Quarterly net income of $2.4 million compared to $6.1 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) of $13.6 million, up 34.5% from the corresponding quarter last year. |
| Quarterly basic income per ADS of $0.06, compared with $0.14 for the corresponding quarter last year. |
| Quarterly adjusted diluted net income per ADS (or diluted income per ADS excluding amortization of intangible assets, share-based compensation, related fringe benefit taxes and minority interest) of $0.32, up from $0.24 for the corresponding quarter last year. |
| Annual revenue of $539.3 million, up 17.3% from the prior fiscal year. |
| Annual revenue less repair payments of $386.4 million, up 32.9% from the prior fiscal year. |
| Annual net income of $8.1 million compared to $9.5 million from the prior fiscal year. |
| Annual adjusted net income (or net income excluding amortization of intangible assets, share-based compensation, related fringe benefit taxes and minority interest) of $46.6 million, up 26.0% from the prior fiscal year. |
| Annual basic income per ADS of $0.19, compared with $0.23 for the prior fiscal year. |
| Annual adjusted diluted net income per ADS (or diluted income per ADS excluding amortization of intangible assets, share-based compensation, related fringe benefit taxes and minority interest) of $1.08, up from $0.86 for the prior fiscal year. |
| Revenue less repair payments is expected to be between $385 million and $390 million. This assumes an average USD to GBP exchange rate of 1.40 to 1.45 for the 2010 fiscal year. |
| Adjusted net income (or net income excluding amortization of intangible assets, share-based compensation, related fringe benefit taxes and minority interest) is expected to range between $50 million and $52 million. This assumes an average INR to USD exchange rate of 49 to 50 for the 2010 fiscal year. |
CONTACT: |
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Investors: |
Media: | |
Alan Katz |
Josh Passman | |
VP Investor Relations |
CJP Communications | |
WNS (Holdings) Limited |
+1 212 279 3115 ext. 203 | |
+1 212 599-6960 ext. 241 |
jpassman@cjpcom.com | |
ir@wnsgs.com |
Three months ended | ||||||||||||||||
March 31, | Year ended March 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenue |
||||||||||||||||
Third parties |
$ | 131,772 | $ | 115,133 | $ | 536,022 | $ | 456,401 | ||||||||
Related parties |
741 | 988 | 3,242 | 3,466 | ||||||||||||
132,513 | 116,121 | 539,264 | 459,867 | |||||||||||||
Cost of revenue |
99,887 | 88,786 | 410,316 | 363,322 | ||||||||||||
Gross profit |
32,626 | 27,335 | 128,948 | 96,545 | ||||||||||||
Operating expenses |
||||||||||||||||
Selling, general and administrative expenses |
17,119 | 21,418 | 75,522 | 72,699 | ||||||||||||
Amortization of intangible assets |
8,012 | 663 | 24,912 | 2,869 | ||||||||||||
Impairment of goodwill and intangible assets |
| | | 15,464 | ||||||||||||
Operating income |
7,495 | 5,254 | 28,514 | 5,513 | ||||||||||||
Other income (expense), net |
262 | 2,221 | (5,639 | ) | 9,184 | |||||||||||
Interest (expense) income, net |
(4,460 | ) | 20 | (11,782 | ) | (3 | ) | |||||||||
Income before income taxes |
3,297 | 7,495 | 11,093 | 14,694 | ||||||||||||
Provision for income taxes |
958 | 1,435 | 3,302 | 5,194 | ||||||||||||
Income before minority interest |
2,339 | 6,060 | 7,792 | 9,500 | ||||||||||||
Minority interest |
107 | | 287 | | ||||||||||||
Net income |
$ | 2,446 | $ | 6,060 | $ | 8,079 | $ | 9,500 | ||||||||
Basic income per share |
$ | 0.06 | $ | 0.14 | $ | 0.19 | $ | 0.23 | ||||||||
Diluted income per share |
$ | 0.06 | $ | 0.14 | $ | 0.19 | $ | 0.22 |
Reconciliation of revenue less repair payments (non-GAAP) to revenue (GAAP)
|
Amount in thousands |
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenue less repair payments (Non-GAAP) |
$ | 95,543 | $ | 75,153 | $ | 386,373 | $ | 290,717 | ||||||||
Add: Payments to repair centers |
36,970 | 40,968 | 152,891 | 169,150 | ||||||||||||
Revenue (GAAP) |
$ | 132,513 | $ | 116,121 | $ | 539,264 | $ | 459,867 | ||||||||
Reconciliation of cost of revenue (non-GAAP to GAAP)
|
Amount in thousands |
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Cost of revenue (Non-GAAP) |
$ | 62,917 | $ | 47,818 | $ | 257,425 | $ | 194,172 | ||||||||
Add: Payments to repair centers |
36,970 | 40,968 | 152,891 | 169,150 | ||||||||||||
Cost of revenue (GAAP) |
$ | 99,887 | $ | 88,786 | $ | 410,316 | $ | 363,322 | ||||||||
Reconciliation of selling, general and administrative expense (non-GAAP to GAAP) |
Amount in thousands |
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Selling, general and administrative
expenses (excluding share-based
compensation expense and
FBT1) (Non-GAAP) |
$ | 14,862 | $ | 18,632 | $ | 65,301 | $ | 65,997 | ||||||||
Add: Share-based compensation expense |
2,426 | 1,323 | 9,775 | 4,380 | ||||||||||||
Add: FBT1 |
(169 | ) | 1,463 | 446 | 2,322 | |||||||||||
Selling, general and administrative
expenses (GAAP) |
$ | 17,119 | $ | 21,418 | $ | 75,522 | $ | 72,699 | ||||||||
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. |
Reconciliation of operating income (non-GAAP to GAAP)
|
Amount in thousands |
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Operating income (excluding
amortization of intangible assets,
share-based compensation expense,
impairment of goodwill and intangible
assets, and FBT1)
(Non-GAAP) |
$ | 18,731 | $ | 9,287 | $ | 67,294 | $ | 32,985 | ||||||||
Less: Amortization of intangible assets |
8,012 | 663 | 24,912 | 2,869 | ||||||||||||
Less: Share-based compensation expense |
3,393 | 1,907 | 13,422 | 6,816 | ||||||||||||
Less: Impairment of goodwill and
intangible assets |
| | | 15,464 | ||||||||||||
Less: FBT1 |
(169 | ) | 1,463 | 446 | 2,322 | |||||||||||
Operating income (GAAP) |
$ | 7,495 | $ | 5,254 | $ | 28,514 | $ | 5,513 | ||||||||
Reconciliation of net income (non-GAAP to GAAP)
|
Amount in thousands |
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net income (excluding amortization of
intangible assets, share-based
compensation expense, impairment of
goodwill and intangible assets,
FBT1 and minority interest)
(Non-GAAP) |
$ | 13,575 | $ | 10,093 | $ | 46,572 | $ | 36,972 | ||||||||
Less: Amortization of intangible assets |
8,012 | 663 | 24,912 | 2,869 | ||||||||||||
Less: Share-based compensation expense |
3,393 | 1,907 | 13,422 | 6,816 | ||||||||||||
Less: Impairment of goodwill and
intangible assets |
| | | 15,464 | ||||||||||||
Less: FBT1 |
(169 | ) | 1,463 | 446 | 2,322 | |||||||||||
Add: Minority interest |
107 | | 287 | | ||||||||||||
Net income (GAAP) |
$ | 2,446 | $ | 6,060 | $ | 8,079 | $ | 9,500 | ||||||||
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. |
Page 7 of 10
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Basic income per ADS
(excluding amortization
and impairment of goodwill
and intangible assets,
share-based compensation
expense, FBT1
and minority interest)
(Non-GAAP) |
$ | 0.32 | $ | 0.24 | $ | 1.10 | $ | 0.88 | ||||||||
Less: Adjustments for
amortization and
impairment of goodwill and
intangible assets,
share-based compensation
expense, FBT1
and minority interest |
0.26 | 0.10 | 0.91 | 0.65 | ||||||||||||
Basic income per ADS (GAAP) |
$ | 0.06 | $ | 0.14 | $ | 0.19 | $ | 0.23 | ||||||||
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Diluted income per ADS
(excluding amortization and
impairment of goodwill and
intangible assets,
share-based compensation
expense, FBT1 and
minority interest)
(Non-GAAP) |
$ | 0.32 | $ | 0.24 | $ | 1.08 | $ | 0.86 | ||||||||
Less: Adjustments for
amortization and impairment
of goodwill and intangible
assets, share-based
compensation expense,
FBT1 and minority
interest |
0.26 | 0.10 | 0.89 | 0.64 | ||||||||||||
Diluted income per ADS (GAAP) |
$ | 0.06 | $ | 0.14 | $ | 0.19 | $ | 0.22 | ||||||||
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. |
Page 8 of 10
As of March 31, | As of March 31, | |||||||
2009 | 2008 | |||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 38,931 | $ | 102,698 | ||||
Bank deposits and marketable securities |
8,925 | 8,074 | ||||||
Accounts receivable, net of allowance of $1,935 and $1,784, respectively |
61,257 | 47,302 | ||||||
Accounts receivable related parties |
64 | 586 | ||||||
Funds held for clients |
5,379 | 6,473 | ||||||
Employee receivables |
745 | 1,179 | ||||||
Prepaid expenses |
2,082 | 3,776 | ||||||
Prepaid income taxes |
5,768 | 2,776 | ||||||
Deferred tax assets |
1,743 | 618 | ||||||
Other current assets |
38,647 | 8,596 | ||||||
Total current assets |
$ | 163,541 | $ | 182,078 | ||||
Goodwill |
81,679 | 87,470 | ||||||
Intangible assets, net |
217,372 | 9,393 | ||||||
Property and equipment, net |
55,992 | 50,840 | ||||||
Other assets non current |
11,449 | 1,278 | ||||||
Deposits |
6,309 | 7,391 | ||||||
Deferred tax assets non current |
15,584 | 8,055 | ||||||
TOTAL ASSETS |
$ | 551,926 | $ | 346,505 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ | 30,879 | $ | 15,562 | ||||
Accounts payable related parties |
42 | 6 | ||||||
Long term debt current |
45,000 | | ||||||
Short term line of credit |
4,331 | | ||||||
Accrued employee costs |
23,754 | 26,848 | ||||||
Deferred revenue current |
5,583 | 7,790 | ||||||
Income taxes payable |
3,995 | 1,879 | ||||||
Deferred tax liabilities current |
| 211 | ||||||
Accrual for earn out payment |
| 33,699 | ||||||
Other current liabilities |
54,126 | 25,806 | ||||||
Total current liabilities |
$ | 167,710 | $ | 111,801 | ||||
Long term debt non current |
155,000 | | ||||||
Deferred revenue non current |
3,561 | 1,549 | ||||||
Deferred rent |
1,967 | 2,627 | ||||||
Accrued pension liability |
2,570 | 1,544 | ||||||
Deferred tax liabilities non current |
9,946 | 1,834 | ||||||
Liability on outstanding derivative contracts non current |
23,163 | | ||||||
Commitments and contingencies |
||||||||
TOTAL LIABILITIES |
$ | 363,917 | $ | 119,355 | ||||
Minority interest |
13 | | ||||||
Shareholders equity: |
||||||||
Ordinary shares, $0.16 (10 pence) par value, Authorized: 50,000,000 shares; |
||||||||
Issued and outstanding: 42,607,403 and 42,363,100 shares, respectively |
6,667 | 6,622 | ||||||
Additional paid-in-capital |
184,122 | 167,459 | ||||||
Ordinary shares subscribed: Nil and 1,666 shares, respectively |
| 10 | ||||||
Retained earnings |
46,917 | 38,839 | ||||||
Accumulated other comprehensive (loss) income |
(49,710 | ) | 14,220 | |||||
Total shareholders equity |
187,996 | 227,150 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
$ | 551,926 | $ | 346,505 | ||||
Page 9 of 10
Year ended March 31, | ||||||||
2009 | 2008 | |||||||
Cash flows from operating activities |
||||||||
Net cash provided by operating activities |
$ | 62,897 | $ | 41,051 | ||||
Cash flows from investing activities |
||||||||
Acquisitions, net of cash received |
(290,994 | ) | (36,121 | ) | ||||
Purchase of facilities and property cost |
(22,693 | ) | (28,134 | ) | ||||
Proceeds from sale of assets, net |
342 | 178 | ||||||
Transfer of delivery centre to AVIVA |
| 1,570 | ||||||
Purchase of marketable securities and deposits |
(41,983 | ) | (48,181 | ) | ||||
Marketable securities and deposits sold |
39,710 | 52,150 | ||||||
Net cash used in investing activities |
(315,618 | ) | (58,538 | ) | ||||
Cash flows from financing activities |
||||||||
Proceeds from exercise of stock options |
988 | 4,204 | ||||||
Excess tax benefits from share-based compensation |
2,226 | 1,613 | ||||||
Proceeds from issuance of long term debt, net |
198,803 | | ||||||
Initial public offering expenses |
| (150 | ) | |||||
Principal repayments under capital lease |
(183 | ) | | |||||
Proceeds from short term line of credit |
16,416 | | ||||||
Repayment of short term line of credit |
(19,310 | ) | | |||||
Net cash provided by financing activities |
198,940 | 5,667 | ||||||
Effect of exchange rate changes on cash and cash
equivalent |
(9,986 | ) | 2,178 | |||||
Net change in cash and cash equivalents |
(63,767 | ) | (9,642 | ) | ||||
Cash and cash equivalents at beginning of period |
102,698 | 112,340 | ||||||
Cash and cash equivalents at end of period |
$ | 38,931 | $ | 102,698 |
Page 10 of 10