WNS (Holdings) Limited (WNS) (NYSE: WNS), a leading provider of
global Business Process Management (BPM) services, today announced
results for the fiscal 2019 fourth quarter and full year ended
March 31, 2019.
Highlights – Fiscal 2019 Fourth Quarter:
GAAP
Financials
•
Revenue of $210.5 million, up 3.8% from
$202.7 million in Q4 of last year and up 5.4% from $199.7 million
last quarter
•
Profit of $29.7 million, compared to
$24.5 million in Q4 of last year and $28.6 million last
quarter
•
Diluted earnings per ADS of $0.57,
compared to $0.47 in Q4 of last year and $0.55 last quarter
Non-GAAP
Financial Measures*
•
Revenue less repair payments of $206.6
million, up 4.2% from $198.2 million in Q4 of last year and up 5.5%
from $195.9 million last quarter
•
Adjusted Net Income (ANI) of $37.8
million, compared to $33.0 million in Q4 of last year and $38.0
million last quarter
•
Adjusted diluted earnings per ADS of
$0.73, compared to $0.63 in Q4 of last year and $0.73 last
quarter
Other
Metrics
•
Added 8 new clients in the quarter,
expanded 24 existing relationships
•
Days sales outstanding (DSO) at 30
days
•
Global headcount of 39,898 as of March
31, 2019
Highlights – Fiscal 2019 Full
Year:
GAAP
Financials
•
Revenue of $809.1 million, up 6.8% from
$758.0 million in fiscal 2018
•
Profit of $105.4 million, compared to
$86.4 million in fiscal 2018
•
Diluted earnings per ADS of $2.02,
compared to $1.63 in fiscal 2018
Non-GAAP
Financial Measures*
•
Revenue less repair payments of $794.0
million, up 7.1% from $741.0 million in fiscal 2018
•
Adjusted Net Income (ANI) of $140.4
million, compared to $118.4 million in fiscal 2018
•
Adjusted diluted earnings per ADS of
$2.69, compared to $2.24 in fiscal 2018
Reconciliations of the non-GAAP financial measures discussed
below to our GAAP operating results are included at the end of this
release. See also “About Non-GAAP Financial Measures.”
Revenue in the fourth quarter was $210.5 million, representing a
3.8% increase versus Q4 of last year and a 5.4% increase from the
previous quarter. Revenue less repair payments* in the fourth
quarter was $206.6 million, an increase of 4.2% year-over-year and
a 5.5% increase sequentially. Excluding exchange rate impacts,
constant currency revenue less repair payments* in the fiscal
fourth quarter grew 9.1% versus Q4 of last year and 5.0%
sequentially. Year-over-year, fiscal Q4 revenue improvement was
driven by healthy organic growth across key verticals, services,
and geographies, which more than offset headwinds from currency
movements and hedging losses. Sequentially, revenue growth was the
result of broad-based revenue strength and favorability from
currency and hedging.
Operating margin in the fourth quarter was 15.3%, as compared to
14.5% in Q4 of last year and 16.7% in the previous quarter. On a
year-over-year basis, margin improvement was the result of
favorable currency movements net of hedging, operating leverage on
higher volumes, and increased productivity. These benefits more
than offset the impact of our annual wage increases. Sequentially,
margins reduced due to currency movements and hedging and lower
productivity associated with Q4 hiring. These headwinds more than
offset lower share-based compensation expense and operating
leverage on higher volumes.
Fourth quarter adjusted operating margin* was 20.8%, versus
20.4% in Q4 of last year and 23.0% last quarter. Explanations for
the adjusted operating margin* movements on a year-over-year and
sequential basis are the same as described for GAAP operating
margins above, with the exception of share-based compensation.
Profit in the fiscal fourth quarter was $29.7 million, as
compared to $24.5 million in Q4 of last year and $28.6 million in
the previous quarter. Adjusted net income (ANI)* in Q4 was $37.8
million, up $4.9 million as compared to Q4 of last year and down
$0.1 million from the previous quarter. In addition to the
operating margin favorability noted previously, year-over-year
profit and ANI* were further increased by a lower effective tax
rate, higher interest income, and lower debt expense. Sequentially,
profit increased as a lower effective tax rate, higher interest
income, and lower debt expense more than offset the impact of lower
operating margin. ANI* declined sequentially, as the favorable
quarter-over-quarter impact of lower share-based compensation
expense is excluded from the ANI* calculation.
From a balance sheet perspective, WNS ended Q4 with $235.8
million in cash and investments and $61.4 million of debt. In the
fourth quarter, the company generated $44.9 million in cash from
operations, and incurred $7.7 million in capital expenditures.
Fourth quarter days sales outstanding were 30 days, as compared to
30 days reported in Q4 of last year and 32 days in the previous
quarter.
“In the fiscal fourth quarter, WNS once again delivered solid
operational and financial performance. Q4 revenue less repair
payments* grew 4% year-over-year, or 9% on a constant currency*
basis, and we added 8 new logos during the quarter. Our full year
results demonstrate WNS’s differentiated positioning in the BPM
marketplace and our ability to execute. For fiscal 2019, WNS grew
organic, constant currency* revenue by 10%, delivered adjusted
operating margin of 21%, grew adjusted diluted earnings* per ADS by
20% to $2.69, and increased our net cash position by $42.3
million,” said Keshav Murugesh, WNS’s Chief Executive Officer. “As
we enter fiscal 2020, the BPM marketplace remains healthy with
business disruption driving transformational opportunities. We
believe WNS’s deep domain expertise, combined with our capabilities
across technology and automation, analytics, and process, uniquely
positions us to help clients better compete. We remain focused on
investing for the future, and to ‘co-create’ with our clients to
deliver long-term sustainable business value for all of our key
stakeholders.”
Fiscal 2020 Guidance
WNS is providing guidance for the fiscal year ending March 31,
2020 as follows:
- Revenue less repair payments* is
expected to be between $854 million and $900 million, up from
$794.0 million in fiscal 2019. This assumes an average GBP to USD
exchange rate of 1.31 in fiscal 2020 versus 1.31 in fiscal
2019.
- ANI* is expected to range between $139
million and $151 million versus $140.4 million in fiscal 2019. This
assumes an average USD to INR exchange rate of 69.00 in fiscal 2020
versus 69.92 in fiscal 2019.
- Fiscal 2020 guidance includes an
anticipated reduction in adjusted diluted earnings* per ADS of
$0.05 as a result of IFRS 16 (as discussed below).
- Based on a diluted share count of 52.1
million shares, the company expects adjusted diluted earnings* per
ADS to be in the range of $2.67 to $2.90 versus $2.69 in fiscal
2019.
“The company has provided our initial forecast for fiscal 2020
based on current visibility levels and exchange rates,” said Sanjay
Puria, WNS’s Chief Financial Officer. “Our guidance for the year
reflects growth in revenue less repair payments* of 8% to 13%, or
7% to 13% on a constant currency* basis. Consistent with our
guidance methodology in previous years, we enter fiscal 2020 with
90% visibility to the midpoint of the range. For the year, we
expect capital expenditures of approximately $37 million.”
IFRS 16:
As of April 1, 2019, WNS adopted the new IFRS standard on lease
accounting (IFRS 16 ‘Leases’). The standard requires a lessee to
recognize a right of use asset and lease liabilities for all
leases, initially measured at the present value of-future lease
payments. It replaces the prior accounting policy of a
straight-line lease expense model with a higher interest accruing
at a higher rate in earlier years and decreasing over the lease
term while depreciation is on a straight-line basis. Under the IFRS
16 adoption method chosen by WNS, prior years are not restated to
conform to the new policies. Consequently, the year-over-year
changes in profit, assets and liabilities, and cash flows in fiscal
2020 will be impacted by the new policies.
The actual impact of IFRS 16 on our profit depends not only on
the lease agreements in effect at the time of adoption but also on
new lease agreements entered into or terminated in fiscal 2020.
Based on WNS’s current lease volumes, we expect the impact of IFRS
16 on our fiscal 2020 profit to be as follows:
- Adjusted gross profit* and adjusted
operating margin* percentages are expected to increase by 120 to
130 basis points.
- Finance expense as a percentage of
revenue is expected to increase by 160 to 170 basis points.
- ANI* is expected to reduce by $2.8
million or 30 basis points, which translates to a reduction in
adjusted diluted earnings* per ADS of $0.05.
Conference Call
WNS will host a conference call on April 25, 2019 at 8:00 am
(Eastern) to discuss the company's quarterly results. To
participate in the call, please use the following details:
+1-888-656-9018; international dial-in +1-503-343-6030; participant
passcode 8167019. A replay will be available for one week following
the call at +1-855-859-2056; international dial-in +1-404-537-3406;
passcode 8167019, as well as on the WNS website, www.wns.com,
beginning two hours after the end of the call.
About WNS
WNS (Holdings) Limited (NYSE: WNS) is a leading Business Process
Management (BPM) company. WNS combines deep industry knowledge with
technology, analytics and process expertise to co-create
innovative, digitally led transformational solutions with over 350
clients across various industries. WNS delivers an entire spectrum
of BPM solutions including industry-specific offerings, customer
interaction services, finance and accounting, human resources,
procurement, and research and analytics to re-imagine the digital
future of businesses. As of March 31, 2019, WNS had 39,898
professionals across 59 delivery centers worldwide including
facilities in China, Costa Rica, India, the Philippines, Poland,
Romania, South Africa, Spain, Sri Lanka, Turkey, the United
Kingdom, and the United States. For more information, visit
www.wns.com.
Safe Harbor Statement
This 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 are based on
our current expectations and assumptions about our Company and our
industry. Generally, these forward-looking statements may be
identified by the use of terminology such as “anticipate,”
“believe,” “estimate,” “expect,” “intend,” “will,” “seek,” “should”
and similar expressions. These statements include, among other
things, the discussions of our strategic initiatives and the
expected resulting benefits, our growth opportunities, industry
environment, expectations concerning our future financial
performance and growth potential, including our fiscal 2020
guidance and the expected impact of IFRS 16 on our profit, future
profitability, and expected foreign currency exchange rates.
Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by such statements. Such risks and
uncertainties include but are not limited to worldwide economic and
business conditions; political or economic instability in the
jurisdictions where we have operations; our dependence on a limited
number of clients in a limited number of industries; regulatory,
legislative and judicial developments; increasing competition in
the BPM industry; technological innovation; telecommunications or
technology disruptions; our ability to attract and retain clients;
our liability arising from fraud or unauthorized disclosure of
sensitive or confidential client and customer data; negative public
reaction in the US or the UK to offshore outsourcing; our ability
to expand our business or effectively manage growth; our ability to
hire and retain enough sufficiently trained employees to support
our operations; the effects of our different pricing strategies or
those of our competitors; our ability to successfully consummate,
integrate and achieve accretive benefits from our strategic
acquisitions, and to successfully grow our revenue and expand our
service offerings and market share; and future regulatory actions
and conditions in our operating areas. These and other factors are
more fully discussed in our most recent annual report on Form 20-F
and subsequent reports on Form 6-K filed with or furnished to the
US Securities and Exchange Commission (SEC) which are available at
www.sec.gov. We caution you not to place undue reliance on any
forward-looking statements. Except as required by law, we do not
undertake to update any forward-looking statements to reflect
future events or circumstances.
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.
References to GAAP refers to International Financial Reporting
Standards, as issued by the International Accounting Standards
Board (IFRS).
* See “About Non-GAAP Financial Measures” and the reconciliations
of the historical non-GAAP financial measures to our GAAP operating
results at the end of this release.
WNS (HOLDINGS) LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(Unaudited, amounts in millions, except
share and per share data)
Three months ended Year ended Mar 31,
2019
Mar 31,
2018
Dec 31,
2018
Mar 31,
2019
Mar 31,
2018
Revenue $ 210.5 $ 202.7 $ 199.7 $ 809.1
$ 758.0 Cost of revenue 131.1
128.4 125.2
518.2 503.1 Gross profit 79.4 74.3 74.5
290.9 254.8 Operating expenses: Selling and marketing expenses 11.3
11.8 10.9 44.6 41.8 General and administrative expenses 31.3 30.5
28.2 115.3 117.6 Foreign exchange loss / (gain), net 0.5 (1.4
)
(1.9 ) (4.5 ) (15.0 ) Amortization of intangible assets 3.9
4.0 3.9
15.8 15.5
Operating profit 32.3 29.4
33.4 119.8
94.9 Other income, net (4.6 ) (3.6
)
(3.6 ) (14.6 ) (11.2 ) Finance expense 0.7
1.1 0.8 3.2
4.3 Profit before income taxes
36.2 31.8 36.2 131.2 101.9 Income tax expense 6.5
7.3 7.6
25.7 15.4 Profit after
tax $ 29.7 $ 24.5 $ 28.6
$ 105.4 $ 86.4 Earnings
per share of ordinary share Basic $ 0.59 $
0.49 $ 0.57 $ 2.10
$ 1.72 Diluted $ 0.57 $ 0.47
$ 0.55 $ 2.02 $ 1.63
WNS (HOLDINGS) LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
(Unaudited, amounts in millions, except
share and per share data)
As at Mar 31,
2019
As at Mar 31,
2018
ASSETS Current assets: Cash and cash equivalents $ 85.4 $
99.8 Investments 67.9 121.0 Trade receivables, net 73.9 71.4
Unbilled revenue 66.8 61.7 Funds held for clients 7.1 10.1
Derivative assets 13.4 11.7 Contract assets 4.2 - Prepayments and
other current assets 16.8 24.9 Total current assets 335.4 400.5
Non-current assets: Goodwill 130.8 135.2 Intangible assets
80.2 89.7 Property and equipment 61.0 60.6 Derivative assets 5.7
3.2 Investments 82.5 0.5 Contract assets 22.0 - Deferred tax assets
23.8 27.4 Other non-current assets 44.2 42.4 Total non-current
assets 450.2 359.0
TOTAL ASSETS $ 785.6
$ 759.6 LIABILITIES AND EQUITY Current
liabilities: Trade payables $ 17.8 $ 19.7 Provisions and accrued
expenses 27.6 28.8 Derivative liabilities 2.1 6.5 Pension and other
employee obligations 68.1 64.6 Current portion of long-term debt
28.0 27.7 Contract liabilities 5.4 2.9 Current taxes payable 2.6
1.3 Other liabilities 10.3 15.7 Total current liabilities 162.0
167.3 Non-current liabilities: Derivative liabilities 0.3
2.3 Pension and other employee obligations 11.2 9.6 Long-term debt
33.4 61.4 Contract liabilities 6.6 0.6 Other non-current
liabilities 9.0 11.7 Deferred tax liabilities 10.7 11.8 Total
non-current liabilities 71.2 97.3
TOTAL LIABILITIES $ 233.2
$ 264.6 Shareholders' equity: Share capital (ordinary shares
$0.16 (10 pence) par value, authorized 60,000,000 shares; issued:
51,153,220 shares and 54,834,080 shares; each as at March 31, 2019
and March 31, 2018, respectively) 8.1 8.5 Share premium 269.5 371.8
Retained earnings 478.1 364.4 Other components of equity (146.9 )
(115.5 ) Total shareholders’ equity including shares held in
treasury $ 608.8 $ 629.2 Less: 1,101,300 shares as at March 31,
2019 and 4,400,000 shares as at March 31, 2018, held in treasury,
at cost (56.4 ) (134.2 ) Total shareholders’ equity $ 552.4 $ 495.0
TOTAL LIABILITIES AND EQUITY $ 785.6 $
759.6
About Non-GAAP Financial
Measures
The financial information in this release includes certain
non-GAAP financial measures that we believe more accurately reflect
our core operating performance. Reconciliations of these non-GAAP
financial measures to our GAAP operating results are included
below. A more detailed discussion of our GAAP results is contained
in “Part I – Item 5. Operating and Financial Review and Prospects”
in our annual report on Form 20-F filed with the SEC on May 16,
2018.
For financial statement reporting purposes, WNS has two
reportable segments: WNS Global BPM and WNS Auto Claims BPM.
Revenue less repair payments is a non-GAAP financial measure that
is calculated as (a) revenue less (b) in the auto claims business,
payments to repair centers for “fault” repair cases where WNS acts
as the principal in its dealings with the third party repair
centers and its clients. WNS believes that revenue less repair
payments for “fault” repairs reflects more accurately the value
addition of the business process management services that it
directly provides to its clients. For more details, please see the
discussion in “Part I – Item 5. Operating and Financial Review and
Prospects – Overview” in our annual report on Form 20-F filed with
the SEC on May 16, 2018.
Constant currency revenue less repair payments is a non-GAAP
financial measure. We present constant currency revenue less repair
payments so that revenue less repair payments may be viewed without
the impact of foreign currency exchange rate fluctuations, thereby
facilitating period-to-period comparisons of business performance.
Constant currency revenue less repair payments is presented by
recalculating prior period’s revenue less repair payments
denominated in currencies other than in US dollars using the
foreign exchange rate used for the latest period, without taking
into account the impact of hedging gains/losses. Our non-US dollar
denominated revenues include, but are not limited to, revenues
denominated in pound sterling, South African rand, Australian
dollar and Euro.
WNS also presents (1) adjusted operating margin, which refers to
adjusted operating profit (calculated as operating profit / (loss)
excluding share-based expense and amortization of intangible
assets) as a percentage of revenue less repair payments, and (2)
ANI, which is calculated as profit excluding share-based expense
and amortization of intangible assets and including the tax
effect thereon, and other non-GAAP financial measures included in
this release as supplemental measures of its performance. WNS
presents these non-GAAP financial measures because it believes they
assist investors in comparing its performance across reporting
periods on a consistent basis by excluding items that are
non-recurring in nature and those it believes are not indicative of
its core operating performance. In addition, it uses these non-GAAP
financial measures (i) as a factor in evaluating management’s
performance when determining incentive compensation and (ii) to
evaluate the effectiveness of its business strategies. These
non-GAAP financial measures are not meant to be considered in
isolation or as a substitute for WNS’s financial results prepared
in accordance with IFRS.
The company is not able to provide our forward-looking GAAP
revenue, profit and earnings per ADS without unreasonable efforts
for a number of reasons, including our inability to predict with a
reasonable degree of certainty the payments to repair centers, our
future share-based compensation expense under IFRS 2 (Share Based
payments), amortization of intangibles associated with future
acquisitions and currency fluctuations. As a result, any attempt to
provide a reconciliation of the forward-looking GAAP financial
measures (revenue, profit, earnings per ADS) to our forward-looking
non-GAAP financial measures (revenue less repair payments*, ANI*
and Adjusted diluted earnings* per ADS respectively) would imply a
degree of likelihood that we do not believe is reasonable.
Reconciliation of revenue (GAAP) to
revenue less repair payments (non-GAAP) and constant currency
revenue less repair payments (non-GAAP)
Three months ended Year ended
Mar 31,
2019
Mar 31,
2018
Dec 31,
2018
Mar 31,
2019
Mar 31,
2018
(Amounts in millions) (Amounts in millions) Revenue
(GAAP) $ 210.5 $ 202.7 $ 199.7 $ 809.1 $ 758.0
Less: Payments to repair centers 3.9 4.5 3.9 15.2 17.0 Revenue less
repair payments (non-GAAP) $ 206.6 $ 198.2 $ 195.9 $ 794.0 $ 741.0
Exchange rate impact (0.6 ) (9.5 ) 0.4 (0.1
)
(18.2 )
Constant currency revenue less repair
payments (non-GAAP)
$ 206.0 $ 188.7 $ 196.2 $ 793.9 $ 722.8
Reconciliation of cost of revenue (GAAP
to non-GAAP)
Three months ended Year ended
Mar 31,
2019
Mar 31,
2018
Dec 31,
2018
Mar 31,
2019
Mar 31,
2018
(Amounts in millions) (Amounts in millions) Cost of
revenue (GAAP) $ 131.1 $ 128.4 $ 125.2
$ 518.2 $ 503.1 Less: Payments to repair centers 3.9
4.5 3.9 15.2 17.0 Less: Share-based compensation expense 0.9 0.8
1.2 4.3 3.8
Adjusted cost of revenue (excluding
payment to repair centers and share-based compensation expense)
(non-GAAP)
$ 126.3 $ 123.2 $ 120.1 $ 498.8 $ 482.4
Reconciliation of gross profit (GAAP to
non-GAAP)
Three months ended Year ended
Mar 31,
2019
Mar 31,
2018
Dec 31,
2018
Mar 31,
2019
Mar 31,
2018
(Amounts in millions) (Amounts in millions) Gross
profit (GAAP) $ 79.4 $ 74.3 $ 74.5 $
290.9 $ 254.8 Add: Share-based compensation expense
0.9 0.8 1.2 4.3 3.8 Adjusted gross profit (excluding share-based
compensation expense) (non-GAAP) $ 80.3 $ 75.1 $ 75.8 $ 295.2 $
258.6
Three months
ended Year ended
Mar 31,
2019
Mar 31,
2018
Dec 31,
2018
Mar 31,
2019
Mar 31,
2018
Gross profit as a percentage of revenue (GAAP) 37.7 %
36.7 % 37.3 %
36.0 % 33.6 % Adjusted gross profit (excluding
share-based compensation expense) as a percentage of revenue less
repair payments (non-GAAP) 38.8 % 37.9 % 38.7 % 37.2 % 34.9 %
Reconciliation of selling and marketing
expenses (GAAP to non-GAAP)
Three months ended Year ended
Mar 31,
2019
Mar 31,
2018
Dec 31,
2018
Mar 31,
2019
Mar 31,
2018
(Amounts in millions) (Amounts in millions) Selling
and marketing expenses (GAAP) $ 11.3 $ 11.8
$ 10.9 $ 44.6 $ 41.8 Less: Share-based
compensation expense 1.1 0.6 1.3 4.0 2.6
Adjusted selling and marketing expenses
(excluding share-based compensation expense) (non-GAAP)
$ 10.2 $ 11.3 $ 9.6 $ 40.6 $ 39.2
Three months ended Year ended
Mar 31,
2019
Mar 31,
2018
Dec 31,
2018
Mar 31,
2019
Mar 31,
2018
Selling and marketing expenses as a percentage of revenue (GAAP)
5.4 % 5.8 % 5.5 % 5.5 %
5.5 % Adjusted selling and marketing expenses (excluding
share-based compensation expense) as a percentage of revenue less
repair payments (non-GAAP) 4.9 % 5.7 % 4.9 % 5.1 % 5.3 %
Reconciliation of general and
administrative expenses (GAAP to non-GAAP)
Three months ended Year ended
Mar 31,
2019
Mar 31,
2018
Dec 31,
2018
Mar 31,
2019
Mar 31,
2018
(Amounts in millions) (Amounts in millions) General
and administrative expenses (GAAP) $ 31.3 $ 30.5
$ 28.2 $ 115.3 $ 117.6 Less:
Share-based compensation expense 4.8 5.8 5.2 22.0 24.2
Adjusted general and administrative
expenses (excluding share-based compensation expense)
(non-GAAP)
$ 26.5 $ 24.8 $ 23.0 $ 93.2 $ 93.4
Three months ended Year ended
Mar 31,
2019
Mar 31,
2018
Dec 31,
2018
Mar 31,
2019
Mar 31,
2018
General and administrative expenses as a percentage of revenue
(GAAP) 14.9 % 15.1 % 14.1 % 14.2 % 15.5 % Adjusted general and
administrative expenses (excluding share-based compensation
expense) as a percentage of revenue less repair payments (non-GAAP)
12.8 % 12.5 % 11.7 % 11.7 % 12.6 %
Reconciliation of operating profit /
(loss) (GAAP to non-GAAP)
Three months ended Year ended
Mar 31,
2019
Mar 31,
2018
Dec 31,
2018
Mar 31,
2019
Mar 31,
2018
(Amounts in millions) (Amounts in millions) Operating
profit (GAAP) $ 32.3 $ 29.4 $ 33.4 $
119.8 $ 94.9 Add: Share-based compensation expense
6.8 7.1 7.7 30.3 30.6 Add: Amortization of intangible assets 3.9
4.0 3.9 15.8 15.5 Adjusted operating profit (excluding
share-based compensation expense and
amortization of intangible assets) (non-GAAP)
$ 43.0 $ 40.4 $ 45.1 $ 165.9 $ 141.0
Three months ended Year
ended
Mar 31,
2019
Mar 31,
2018
Dec 31,
2018
Mar 31,
2019
Mar 31,
2018
Operating profit as a percentage of revenue (GAAP) 15.3 %
14.5 % 16.7 % 14.8 % 12.5 %
Adjusted operating profit (excluding
share-based compensation expense and amortization of intangible
assets) as a percentage of revenue less repair payments
(non-GAAP)
20.8 % 20.4 % 23.0 % 20.9 % 19.0 %
Reconciliation of profit / (loss)
(GAAP) to ANI (non-GAAP)
Three months ended Year ended
Mar 31,
2019
Mar 31,
2018
Dec 31,
2018
Mar 31,
2019
Mar 31,
2018
(Amounts in millions) (Amounts in millions) Profit
(GAAP) $ 29.7 $ 24.5 $ 28.6 $ 105.4 $
86.4 Add: Share-based compensation expense 6.8 7.1 7.7 30.3 30.6
Add: Amortization of intangible assets 3.9 4.0 3.9 15.8 15.5 Less:
Tax impact on share-based compensation expense(1) (1.3 ) (1.3 )
(1.5 ) (7.1 ) (8.4 ) Less: Tax impact on amortization of intangible
assets(1) (1.2 ) (1.2 ) (0.8 ) (4.0 ) (5.6 ) Adjusted Net Income
(excluding share-based compensation expense and amortization of
intangible assets, including tax effect thereon) (non-GAAP) $ 37.8
$ 33.0 $ 38.0 $ 140.4 $ 118.4 (1) The company applies GAAP
methodologies in computing the tax impact on its non-GAAP ANI
adjustments (including amortization of intangible assets and
share-based compensation expense). The company’s non-GAAP tax
expense is generally higher than its GAAP tax expense if the income
subject to taxes is higher considering the effect of the items
excluded from GAAP profit to arrive at non-GAAP profit.
Three months
ended Year ended
Mar 31,
2019
Mar 31,
2018
Dec 31,
2018
Mar 31,
2019
Mar 31,
2018
Profit as a percentage of revenue (GAAP) 14.1 % 12.1
% 14.3 % 13.0 % 11.4 % Adjusted net income (excluding
share-based compensation expense and amortization of intangible
assets including tax effect thereon) as a percentage of revenue
less repair payments (non-GAAP) 18.3 % 16.6 % 19.4 % 17.7 % 16.0 %
Reconciliation of basic earnings per
ADS (GAAP to non-GAAP)
Three months ended Year ended
Mar 31,
2019
Mar 31,
2018
Dec 31,
2018
Mar 31,
2019
Mar 31,
2018
Basic earnings per ADS (GAAP) $ 0.59 $ 0.49 $ 0.57
$ 2.10 $ 1.72 Add: Adjustments for share-based
compensation expense and amortization of intangible assets 0.21
0.21 0.23 0.92 0.91 Less: Tax impact on share-based compensation
expense and amortization of intangible assets (0.04 ) (0.05 ) (0.04
) (0.22 ) (0.28 ) Adjusted basic earnings per ADS (excluding
share-based compensation expenses and amortization of intangible
assets, including tax effect thereon) (non-GAAP) $ 0.76 $ 0.65 $
0.76 $ 2.80 $ 2.35
Reconciliation of diluted earnings per
ADS (GAAP to non-GAAP)
Three months ended Year ended
Mar 31,
2019
Mar 31,
2018
Dec 31,
2018
Mar 31,
2019
Mar 31,
2018
Diluted earnings per ADS (GAAP) $ 0.57 $ 0.47 $ 0.55
$ 2.02 $ 1.63 Add: Adjustments for share-based
compensation expense and amortization of intangible assets 0.21
0.21 0.23 0.88 0.88 Less: Tax impact on share-based compensation
expense and amortization of intangible assets (0.05 ) (0.05 ) (0.05
)
(0.21 ) (0.27 ) Adjusted diluted earnings per ADS (excluding
amortization of intangible assets and share-based compensation
expense, including tax effect thereon) (non-GAAP) $ 0.73 $ 0.63 $
0.73 $ 2.69 $ 2.24
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190425005405/en/
Investors:David
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RelationsWNS (Holdings) Limited+1 (201)
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Media:Archana RaghuramGlobal
Head – Marketing & Communications and Corporate Business
DevelopmentWNS (Holdings) Limited+91 (22) 4095
2397archana.raghuram@wns.compr@wns.com
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