Quarterly Revenue Increases 14.1%; Revenue Less Repair Payments
Increases 27.1% Over the Corresponding Quarter in the Prior Fiscal
Year NEW YORK and MUMBAI, India, May 7 /PRNewswire-FirstCall/ --
WNS (Holdings) Limited (NYSE:WNS), a leading provider of global
business process outsourcing (BPO) services, today announced
results for the fiscal fourth quarter and fiscal year 2009 ended
March 31, 2009, and established guidance on revenue less repair
payments and adjusted net income (or net income excluding
amortization of intangible assets, share-based compensation,
related fringe benefit taxes and minority interest) for fiscal
2010. Fiscal Q4 2009 Revenue for the fiscal fourth quarter 2009 of
$132.5 million represented an increase of 14.1% over the
corresponding quarter in the prior fiscal year, while revenue less
repair payments at $95.5 million increased 27.1% over the
corresponding quarter in the prior fiscal year. The revenue less
repair payments growth largely resulted from growth from Aviva
Global Services (AGS) and Call 24/7 Limited, which WNS acquired in
July and April 2008, respectively. Net income for the fiscal fourth
quarter 2009 was $2.4 million compared to $6.1 million during the
corresponding quarter in the prior fiscal year. The net income in
the current quarter was impacted primarily by amortization charges
from the acquisition of AGS and higher foreign exchange losses.
Adjusted net income was $13.6 million, an increase of 34.5% over
the corresponding quarter in the prior year. The primary drivers of
this increase were revenue growth, tighter cost management,
improved scale benefits and increased income from WNS'
acquisitions. This increase was partially offset by higher foreign
exchange losses. "WNS finished fiscal year 2009 on a strong note,"
said Neeraj Bhargava, Group Chief Executive Officer. "We continued
to see new client activity and our focus on operations has
positively affected our profitability. While the global economy is
expected to present challenges in fiscal 2010, we are
well-positioned to execute on our plan and increase profitability
during the next year." WNS recorded a basic income per ADS of $0.06
for fiscal fourth quarter 2009. 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) was $0.32 for the quarter. Fiscal Year 2009 For
the fiscal year 2009, WNS achieved revenues of $539.3 million,
representing an increase of 17.3% over the prior fiscal year.
Revenue less repair payments of $386.4 million increased 32.9% over
the prior year. The growth in revenue less repair payments was
largely as a result of increased revenues associated with AGS and
Call 24/7 Limited, which WNS acquired in July and April 2008,
respectively. Net income for the full year ended March 31, 2009 was
$8.1 million compared to $9.5 million in the prior fiscal year. The
net income decrease was a result of amortization charges from the
acquisition of AGS and foreign exchange losses, partially offset by
improved synergies in operations. Adjusted net income was $46.6
million, an increase of 26.0% over fiscal 2008. The primary drivers
of this increase were revenue growth, tighter cost management,
improved scale benefits, and increased income from WNS'
acquisitions. These increases were partially offset by higher
foreign exchange losses. WNS recorded a basic income per ADS of
$0.19 for the fiscal year 2009. 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) was $1.08 for the year. On April 2, 2009, WNS
announced that it was making a voluntary prepayment of $5 million
on its existing $200 million term loan facility as permitted under
the terms of the loan agreement. This payment was made on April 14,
2009. "We have made significant progress in improving our working
capital and tightening our capital expenditure, thanks largely to
the synergies from our recent acquisitions, which combined with our
improved profitability resulted in the strong free cash flow that
we have realized this quarter. This will continue to be our area of
focus," said Alok Misra, Group Chief Financial Officer. Financial
Highlights: Fiscal Fourth Quarter Ended March 31, 2009 -- 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.
Financial Highlights: Fiscal Full Year Ended March 31, 2009 --
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. Reconciliations of non-GAAP
financial measures to GAAP operating results are included at the
end of this release. Fiscal 2010 Guidance WNS is providing the
following guidance for the fiscal year ending March 31, 2010: --
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. "Although we are facing currency and economic
headwinds which impact our top line, we are confident that we will
increase our profitability and free cash flows as a result of the
actions that we have taken to improve our operating leverage and
our continued balance sheet focus," continued Misra. Conference
Call WNS will host a conference call on May 7, 2009 at 8 am (ET) to
discuss the company's quarterly and full year results. To
participate, callers can dial: +1-800-295-3991; international
dial-in +1-617-614-3924; participant passcode 1352836. A replay
will also be made available for one week following the call at
+1-888-286-8010; international dial-in +1-617-801-6888; passcode
89145684, for a period of three months beginning two hours after
the end of the call. A webcast will be available online at
http://www.wns.com/. About WNS WNS Holdings Ltd. (NYSE:WNS) is a
leading global business process outsourcing company. Deep industry
and business process knowledge, a partnership approach,
comprehensive service offering and a proven track record enables
WNS to deliver business value to some of the leading companies in
the world. WNS is passionate about building a market-leading
company valued by our clients, employees, business partners,
investors and communities. For more information, visit
http://www.wns.com/. About Non-GAAP Financial Measures For
financial statement reporting purposes, the company has two
reportable segments: WNS Global BPO and WNS Auto Claims BPO. In the
auto claims segment, which includes WNS Assistance and Chang
Limited, WNS provides claims-handling and accident-management
services, in which it arranges for automobile repairs through a
network of third-party repair centers. In its accident-management
services, WNS acts as the principal in dealings with the
third-party repair centers and clients. In order to provide
accident-management services, the Company arranges for the repair
through a network of repair centers. Repair costs are invoiced to
customers. Amounts invoiced to customers for repair costs paid to
the automobile repair centers are recognized as revenue. The
Company uses revenue less repair payments for "fault" repairs as a
primary measure to allocate resources and measure segment
performance. Revenue less repair payments is a non-GAAP measure
which is calculated as revenue less payments to repair centers. For
"Non fault repairs," revenue including repair payments is used as a
primary measure. As the Company provides a consolidated suite of
accident management services including credit hire and credit
repair for its "Non fault" repairs business, the Company believes
that measurement of that line of business has to be on a basis that
includes repair payments in revenue. The Company believes that the
presentation of this non-GAAP measure provides useful information
for investors regarding financial performance. The presentation of
this non-GAAP information is not meant to be considered in
isolation or as a substitute for the Company's financial results
prepared in accordance with US GAAP. Safe Harbor Statement under
the provisions of the United States Private Securities Litigation
Reform Act of 1995 This news release contains forward-looking
statements, as defined in the safe harbor provisions of the US
Private Securities Litigation Reform Act of 1995. These
forward-looking statements include statements regarding expected
future financial results. These statements involve a number of
risks, uncertainties and other factors that could cause actual
results to differ materially from those that may be projected by
these forward looking statements. These risks and uncertainties
include but are not limited to technological innovation;
telecommunications or technology disruptions; future regulatory
actions and conditions in our operating areas; our dependence on a
limited number of clients in a limited number of industries; our
ability to attract and retain clients; our ability to expand our
business or effectively manage growth; our ability to hire and
retain enough sufficiently trained employees to support our
operations; negative public reaction in the US or the UK to
offshore outsourcing; regulatory, legislative and judicial
developments; increasing competition in the business process
outsourcing industry; political or economic instability in India,
Sri Lanka and Jersey; worldwide economic and business conditions,
including a slowdown in the US and Indian economies and in the
sectors in which our clients are based and a slowdown in the BPO
and IT sectors world-wide; our ability to successfully grow our
revenues, expand our service offerings and market share and achieve
accretive benefits from our acquisition of Aviva Global Services
Singapore Private Limited and our master services agreement with
Aviva Global Services (Management Services) Private Limited; our
ability to successfully consummate strategic acquisitions, as well
as other risks detailed in our reports filed with the US Securities
and Exchange Commission. These filings are available at
http://www.sec.gov/. We may, from time to time, make additional
written and oral forward-looking statements, including statements
contained in our filings with the Securities and Exchange
Commission and our reports to shareholders. You are cautioned not
to place undue reliance on these forward-looking statements, which
reflect management's current analysis of future events. We
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. References to "$" and "USD" refer to
the United States dollars, the legal currency of the United States;
references to "GBP" refer to the British Pound, the legal currency
of Britain; and references to "INR" refer to Indian Rupees, the
legal currency of India. CONTACT: 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 WNS
(HOLDINGS) LIMITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data) Three months ended
Year ended March 31, 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 Year ended March 31, 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 Year ended March 31, 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 Year
ended March 31, March 31, 2009 2008 2009 2008 Selling, general and
administrative expenses (excluding share-based compensation expense
and FBT(1)) (Non-GAAP) $14,862 $18,632 $65,301 $65,997 Add:
Share-based compensation expense 2,426 1,323 9,775 4,380 Add:
FBT(1) (169) 1,463 446 2,322 Selling, general and administrative
expenses (GAAP) $17,119 $21,418 $75,522 $72,699 Reconciliation of
operating income (non-GAAP to GAAP) Amount in thousands Three
months ended Year ended March 31, March 31, 2009 2008 2009 2008
Operating income (excluding amortization of intangible assets,
share-based compensation expense, impairment of goodwill and
intangible assets, and FBT(1)) (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: FBT(1) (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 Year ended March
31, March 31, 2009 2008 2009 2008 Net income (excluding
amortization of intangible assets, share-based compensation
expense, impairment of goodwill and intangible assets, FBT(1) 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:
FBT(1) (169) 1,463 446 2,322 Add: Minority interest 107 - 287 - Net
income (GAAP) $2,446 $6,060 $8,079 $9,500 Reconciliation of basic
income per ADS (non-GAAP to GAAP) Three months ended Year ended
March 31, March 31, 2009 2008 2009 2008 Basic income per ADS
(excluding amortization and impairment of goodwill and intangible
assets, share-based compensation expense, FBT(1) 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, FBT(1) and minority interest 0.26
0.10 0.91 0.65 Basic income per ADS (GAAP) $0.06 $0.14 $0.19 $0.23
Reconciliation of diluted income per ADS (non-GAAP to GAAP) Three
months ended Year ended March 31, March 31, 2009 2008 2009 2008
Diluted income per ADS (excluding amortization and impairment of
goodwill and intangible assets, share-based compensation expense,
FBT(1) 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, FBT(1) 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. WNS
(HOLDINGS) LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts
in thousands, except share and per share data) As of As of March
31, 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 WNS
(HOLDINGS) LIMITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands) 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 DATASOURCE: WNS Holdings Ltd.
CONTACT: Investors, Alan Katz, VP -- Investor Relations of WNS
(Holdings) Limited, +1-212-599-6960, Ext. 241, ; or Media, Josh
Passman of CJP Communications, +1-212-279-3115, Ext. 203, Web Site:
http://www.wns.com/
Copyright
WNS (NYSE:WNS)
Historical Stock Chart
From Jun 2024 to Jul 2024
WNS (NYSE:WNS)
Historical Stock Chart
From Jul 2023 to Jul 2024