NEW YORK, Nov. 7, 2019 /PRNewswire/ -- Genpact Limited
(NYSE: G), a global professional services firm focused on
delivering digital transformation, today announced financial
results for the third quarter ended September 30, 2019.
"I am very pleased with our third quarter results, as we
continue to see broad momentum across our business. Demand for our
Transformation Services, that feeds our annuity Intelligent
Operations, remains the primary driver of robust Global Client
growth. Strong operating performance led to healthy Adjusted
EPS and operating cash flows during the quarter," said "Tiger"
Tyagarajan, Genpact's president and CEO. "We have
embraced the experience economy using design thinking as a lever to
create value across clients' operations. This has become a
key factor in our winning many new, large, multi-year
relationships. We believe the pending acquisition of
Rightpoint and their digital consulting team dramatically enhances
our already strong capabilities in experience, and further
strengthens our reputation as a thought leader in this space."
Key Financial Results – Third Quarter 2019
- Total revenue was $889 million,
up 19% year-over-year, both on an as reported and constant currency
basis.3
- Income from operations was $114
million, up 21% year-over-year, with a corresponding margin
of 12.8%. Adjusted income from operations was $142 million, up 15% year-over-year, with a
corresponding margin of 16.0%.4
- Diluted earnings per share were $0.45, up 18% year-over-year, and adjusted
diluted earnings per share2 were $0.56, up 17% year-over-year.
Revenue Details – Third Quarter 2019
Total Company
- Total BPO revenue was $749
million, up 20% year-over-year, representing 84% of total
revenues.
- Total IT revenue was $139
million, up 12% year-over-year, representing 16% of total
revenues.
Global Clients
- Revenue from Global Clients was $768
million5, up 12% year-over-year (up 13% on a
constant currency basis)3, representing 86% of total
revenues.
- Global Client BPO revenue was $666
million, up 14% year-over-year, both on an as reported and
constant currency basis.3
- Global Client IT revenue was $102
million, up 4% year-over-year.
GE
- Revenue from GE was $121
million5, up 88% year-over-year, representing 14%
of total revenues.
- GE BPO revenue was $83 million,
up 124% year-over-year.
- GE IT revenue was $38 million, up
38% year-over-year.
Cash Flow from Operations
- Cash generated from operations was $220
million in the third quarter of 2019, compared to
$153 million in the third quarter of
2018.
2019 Outlook
The 2019 full-year outlook does not include any impact from the
planned acquisition of Rightpoint.
Genpact continues to expect:
- Total revenue for the full-year 2019 of $3.46 to $3.5
billion, up 15% to 17%, or 16% to 18% on a constant currency
basis.3
- Global Client revenue growth in the range of 9.5% to 11%, or
10.5% to 12% on a constant currency basis.3
- Adjusted income from operations margin6 of
approximately 16.0%.
Genpact now expects:
- Adjusted diluted EPS7 of $2.02 to $2.04, up
from the prior range of $2.00 to
$2.02.
Conference Call to Discuss Financial Results
Genpact's management will host an hour-long conference call
beginning at 4:30 p.m. ET on
November 7, 2019 to discuss the
company's performance for the third quarter ended September 30, 2019. To participate, callers can
dial +1 (877) 654-0173 from within the U.S. or +1 (281) 973-6289
from any other country. Callers will be prompted to enter the
conference ID, 7367539.
A live webcast of the call will also be made available on the
Genpact Investor Relations website
at https://www.genpact.com/investors. For those who cannot
join the call live, a replay will be archived on the Genpact
website after the end of the call. A transcript of the call will
also be made available on the website.
About Genpact
Genpact (NYSE: G) is a global professional services firm that
makes business transformation real. We drive digital-led innovation
and digitally-enabled intelligent operations for our clients,
guided by our experience running thousands of processes
primarily for Global Fortune 500 companies. We think with
design, dream in digital, and solve problems with data and
analytics. Combining our expertise in end-to-end operations
and our AI-based platform, Genpact Cora, we focus on the details –
all 90,000+ of us. From New York to New Delhi and more than 30 countries in
between, we connect every dot, reimagine every process, and
reinvent companies' ways of working. We know that reimagining each
step from start to finish creates better business outcomes.
Whatever it is, we'll be there with you – accelerating digital
transformation to create bold, lasting results – because
transformation happens here.
Safe Harbor
This press release contains certain statements concerning our
future growth prospects and financial results and other
forward-looking statements, as defined in the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These statements involve a number of risks, uncertainties and
other factors that could cause actual results to differ materially
from those in such forward-looking statements. These risks,
uncertainties, and other factors include but are not limited to a
slowdown in the economies and sectors in which our clients operate,
a slowdown in the business process outsourcing or information
technology services sectors, our ability to develop and
successfully execute our business strategies, the risks and
uncertainties arising from our past and future acquisitions, our
ability to convert bookings to revenues, our ability to manage
growth, factors which may impact our cost advantage, wage
increases, changes in tax rates and tax legislation and other laws
and regulations, our ability to attract and retain skilled
professionals, risks and uncertainties regarding fluctuations in
our earnings, foreign currency fluctuations, general economic
conditions affecting our industry, political, economic or business
conditions in countries in which we operate, including the
uncertainty relating to the pending withdrawal of the United Kingdom from the European Union,
commonly known as Brexit, as well as other risks detailed in our
reports filed with the U.S. Securities and Exchange Commission,
including Genpact's Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q. These filings are available at www.sec.gov.
Genpact 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. Although Genpact believes that these
forward-looking statements are based on reasonable assumptions, you
are cautioned not to put undue reliance on these forward-looking
statements, which reflect management's current analysis of future
events and should not be relied upon as representing management's
expectations or beliefs as of any date subsequent to the time they
are made. Genpact undertakes no obligation to update any
forward-looking statements that may be made from time to time by or
on behalf of Genpact.
Contacts
Investors
|
|
Roger Sachs,
CFA
|
|
|
+1 (203)
808-6725
|
|
|
roger.sachs@genpact.com
|
|
|
Media
|
|
Michael
Schneider
+1 (217)
260-5041
michael.schneider@genpact.com
|
GENPACT LIMITED
AND ITS SUBSIDIARIES
Consolidated Balance
Sheets
(Unaudited)
(In thousands, except
per share data and share count)
|
|
|
|
As of December 31,
|
|
|
As of September 30,
|
|
|
|
2018
|
|
|
2019
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
368,396
|
|
|
$
|
456,872
|
|
Accounts receivable,
net
|
|
|
774,184
|
|
|
|
863,232
|
|
Prepaid expenses and
other current assets
|
|
|
212,477
|
|
|
|
236,761
|
|
Total current
assets
|
|
$
|
1,355,057
|
|
|
$
|
1,556,865
|
|
Property, plant and
equipment, net
|
|
|
212,715
|
|
|
|
216,385
|
|
Operating lease
Right-Of-Use assets
|
|
|
—
|
|
|
|
299,868
|
|
Deferred tax
assets
|
|
|
74,566
|
|
|
|
80,583
|
|
Investment in equity
affiliates
|
|
|
836
|
|
|
|
—
|
|
Intangible assets,
net
|
|
|
177,087
|
|
|
|
162,571
|
|
Goodwill
|
|
|
1,393,832
|
|
|
|
1,389,487
|
|
Contract cost
assets
|
|
|
160,193
|
|
|
|
206,503
|
|
Other
assets
|
|
|
155,159
|
|
|
|
185,499
|
|
Total
assets
|
|
$
|
3,529,445
|
|
|
$
|
4,097,761
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
295,000
|
|
|
$
|
245,000
|
|
Current portion of
long-term debt
|
|
|
33,483
|
|
|
|
33,504
|
|
Accounts
payable
|
|
|
42,584
|
|
|
|
20,954
|
|
Income taxes
payable
|
|
|
33,895
|
|
|
|
84,537
|
|
Accrued expenses and
other current liabilities
|
|
|
571,350
|
|
|
|
630,151
|
|
Operating leases
liability
|
|
|
—
|
|
|
|
50,048
|
|
Total current
liabilities
|
|
$
|
976,312
|
|
|
$
|
1,064,194
|
|
Long-term debt, less
current portion
|
|
|
975,645
|
|
|
|
950,908
|
|
Operating leases
liability
|
|
|
—
|
|
|
|
278,449
|
|
Deferred tax
liabilities
|
|
|
8,080
|
|
|
|
4,413
|
|
Other
liabilities
|
|
|
165,226
|
|
|
|
194,113
|
|
Total
liabilities
|
|
$
|
2,125,263
|
|
|
$
|
2,492,077
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
|
Preferred shares,
$0.01 par value, 250,000,000 authorized, none issued
|
|
|
—
|
|
|
|
—
|
|
Common shares, $0.01
par value, 500,000,000 authorized, 189,346,101 and 190,113,448
issued and outstanding as of December 31, 2018 and September 30,
2019, respectively
|
|
|
1,888
|
|
|
|
1,896
|
|
Additional paid-in
capital
|
|
|
1,471,301
|
|
|
|
1,544,755
|
|
Retained
earnings
|
|
|
438,453
|
|
|
|
588,714
|
|
Accumulated other
comprehensive income (loss)
|
|
|
(507,460)
|
|
|
|
(529,681)
|
|
Total
equity
|
|
$
|
1,404,182
|
|
|
$
|
1,605,684
|
|
Total liabilities
and equity
|
|
$
|
3,529,445
|
|
|
$
|
4,097,761
|
|
GENPACT LIMITED
AND ITS SUBSIDIARIES
Consolidated
Statements of Income
(Unaudited)
(In thousands, except
per share data and share count)
|
|
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
Net
revenues
|
|
$
|
747,978
|
|
|
$
|
888,799
|
|
|
$
|
2,165,451
|
|
|
$
|
2,579,804
|
|
Cost of
revenue
|
|
|
481,412
|
|
|
|
573,659
|
|
|
|
1,388,634
|
|
|
|
1,664,040
|
|
Gross
profit
|
|
$
|
266,566
|
|
|
$
|
315,140
|
|
|
$
|
776,817
|
|
|
$
|
915,764
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
168,010
|
|
|
|
194,537
|
|
|
|
515,285
|
|
|
|
582,251
|
|
Amortization of
acquired intangible assets
|
|
|
9,372
|
|
|
|
6,960
|
|
|
|
29,134
|
|
|
|
23,565
|
|
Other operating
(income) expense, net
|
|
|
(4,844)
|
|
|
|
59
|
|
|
|
(4,913)
|
|
|
|
90
|
|
Income from
operations
|
|
$
|
94,028
|
|
|
$
|
113,584
|
|
|
$
|
237,311
|
|
|
$
|
309,858
|
|
Foreign exchange
gains (losses), net
|
|
|
7,450
|
|
|
|
6,727
|
|
|
|
15,053
|
|
|
|
3,646
|
|
Interest income
(expense), net
|
|
|
(9,139)
|
|
|
|
(10,221)
|
|
|
|
(27,646)
|
|
|
|
(33,487)
|
|
Other income
(expense), net
|
|
|
5,385
|
|
|
|
704
|
|
|
|
30,683
|
|
|
|
5,067
|
|
Income before
equity-method investment activity, net
and income tax expense
|
|
$
|
97,724
|
|
|
$
|
110,794
|
|
|
$
|
255,401
|
|
|
$
|
285,084
|
|
Equity-method
investment activity, net
|
|
|
(7)
|
|
|
|
(5)
|
|
|
|
(22)
|
|
|
|
(16)
|
|
Income before
income tax expense
|
|
$
|
97,717
|
|
|
$
|
110,789
|
|
|
$
|
255,379
|
|
|
$
|
285,068
|
|
Income tax
expense
|
|
|
24,114
|
|
|
|
22,669
|
|
|
|
53,268
|
|
|
|
62,385
|
|
Net
income
|
|
$
|
73,603
|
|
|
$
|
88,120
|
|
|
$
|
202,111
|
|
|
$
|
222,683
|
|
Net loss (income)
attributable to redeemable non-controlling
interest
|
|
|
—
|
|
|
|
—
|
|
|
|
761
|
|
|
|
—
|
|
Net income
attributable to Genpact Limited shareholders
|
|
$
|
73,603
|
|
|
$
|
88,120
|
|
|
$
|
202,872
|
|
|
$
|
222,683
|
|
Net income available
to Genpact Limited common shareholders
|
|
$
|
73,603
|
|
|
$
|
88,120
|
|
|
$
|
202,872
|
|
|
$
|
222,683
|
|
Earnings per common
share attributable to Genpact Limited
common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.39
|
|
|
$
|
0.46
|
|
|
$
|
1.06
|
|
|
$
|
1.17
|
|
Diluted
|
|
$
|
0.38
|
|
|
$
|
0.45
|
|
|
$
|
1.04
|
|
|
$
|
1.14
|
|
Weighted average
number of common shares used in
computing earnings per common share attributable to Genpact
Limited common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
190,024,924
|
|
|
|
190,599,049
|
|
|
|
190,991,405
|
|
|
|
190,071,418
|
|
Diluted
|
|
|
193,115,769
|
|
|
|
195,890,841
|
|
|
|
194,256,771
|
|
|
|
194,683,699
|
|
GENPACT LIMITED
AND ITS SUBSIDIARIES
Consolidated
Statements of Cash Flows
(Unaudited)
(In
thousands)
|
|
|
Nine months ended
September 30,
|
|
2018
|
|
2019
|
Operating
activities
|
|
|
|
Net income
attributable to Genpact Limited shareholders
|
$
|
202,872
|
|
$
|
222,683
|
Net loss attributable
to redeemable non-controlling Interest
|
(761)
|
|
—
|
Net
income
|
$
|
202,111
|
|
$
|
222,683
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
47,612
|
|
70,234
|
Amortization of debt
issuance costs (including loss on extinguishment of
debt)
|
3,546
|
|
1,288
|
Amortization of
acquired intangible assets
|
29,134
|
|
23,565
|
Write-down of
intangible assets and property, plant and equipment
|
1.538
|
|
3,511
|
Reserve for doubtful
receivables
|
1,705
|
|
7,169
|
Unrealized (gain) on
revaluation of foreign currency asset/liability
|
(4,544)
|
|
(4,862)
|
Equity-method
investment activity, net
|
22
|
|
16
|
Stock-based
compensation expense
|
32,158
|
|
61,307
|
Deferred income
taxes
|
(1,768)
|
|
(6,946)
|
Others,
net
|
255
|
|
(2,621)
|
Change in
operating assets and liabilities:
|
|
|
|
Increase in accounts
receivable
|
(12,946)
|
|
(97,269)
|
Increase in
prepaid expenses, other current assets, contract cost assets,
operating
lease right-of-use assets and other assets
|
(96,300)
|
|
(87,064)
|
Decrease in accounts
payable
|
(913)
|
|
(20,670)
|
Increase
(decrease) in accrued expenses, other current liabilities,
operating lease
liabilities and other liabilities
|
(44,602)
|
|
122,411
|
Increase in income
taxes payable
|
45,798
|
|
48,567
|
Net cash provided
by operating activities
|
$
|
202,806
|
|
$
|
341,319
|
Investing
activities
|
|
|
|
Purchase of property,
plant and equipment
|
(68,027)
|
|
(55,071)
|
Payment for
internally generated intangible assets (including intangibles under
development)
|
|
(19,397)
|
|
|
(26,261)
|
Proceeds from sale of
property, plant and equipment
|
499
|
|
1,621
|
Payment for business
acquisitions, net of cash acquired
|
(108,105)
|
|
(6,305)
|
Payment for purchase
of redeemable non-controlling interest
|
(4,730)
|
|
—
|
Net cash used for
investing activities
|
$
|
(199,760)
|
|
$
|
(86,016)
|
Financing
activities
|
|
|
|
Repayment of
capital/finance lease obligations
|
(1,954)
|
|
(6,256)
|
Payment of debt
issuance costs
|
(4,293)
|
|
—
|
Proceeds from long
term debt
|
129,186
|
|
—
|
Repayment of
long-term debt
|
(157,686)
|
|
(25,500)
|
Proceeds from
short-term borrowings
|
225,000
|
|
50,000
|
Repayment of
short-term borrowings
|
(65,000)
|
|
(100,000)
|
Proceeds from
issuance of common shares under stock-based compensation
plans
|
12,275
|
|
15,949
|
Payment for net
settlement of stock-based awards
|
(14,947)
|
|
(3,177)
|
Payment of
earn-out/deferred consideration
|
(1,559)
|
|
(12,790)
|
Dividend
paid
|
|
(42,901)
|
|
|
(48,515)
|
Payment for stock
purchased and retired
|
(130,103)
|
|
(23,901)
|
Payment for expenses
related to stock purchase
|
(82)
|
|
(12)
|
Net cash provided
by/(used for) financing activities
|
$
|
(52,064)
|
|
$
|
(154,202)
|
Effect of exchange
rate changes
|
(54,220)
|
|
(12,625)
|
Net increase
(decrease) in cash and cash equivalents
|
(49,018)
|
|
101,101
|
Cash and cash
equivalents at the beginning of the period
|
504,468
|
|
368,396
|
Cash and cash
equivalents at the end of the period
|
$
|
401,230
|
|
$
|
456,872
|
Supplementary
information
|
|
|
|
Cash paid during the
period for interest
|
$
|
35,082
|
|
$
|
31,633
|
Cash paid during the
period for income taxes
|
$
|
54,920
|
|
$
|
65,562
|
Property, plant and
equipment acquired under capital lease obligations
|
$
|
1,832
|
|
$
|
3,587
|
Non-GAAP Financial Measures to GAAP Measures
To supplement the consolidated financial statements presented
in accordance with GAAP, this press release includes the following
non-GAAP financial measures:
- Adjusted income from operations attributable to shareholders
of Genpact Limited, or adjusted income from operations;
- Adjusted income from operations margin;
- Adjusted diluted earnings per share attributable to
shareholders of Genpact Limited, or adjusted diluted earnings per
share; and
- Revenue growth on a constant currency basis.
These non-GAAP financial measures are not based on any
comprehensive set of accounting rules or principles and should not
be considered a substitute for, or superior to, financial measures
calculated in accordance with GAAP, and may be different from
non-GAAP financial measures used by other companies. Accordingly,
these non-GAAP financial measures, the financial statements
prepared in accordance with GAAP and the reconciliations of
Genpact's GAAP financial statements to such non-GAAP financial
measures should be carefully evaluated.
Prior to July 2012, Genpact's
management used financial information that excluded significant
acquisition-related expenses, amortization of related acquired
intangibles, and amortization of acquired intangibles at the
company's formation in 2004 for its internal management reporting,
budgeting and decision-making purposes, including comparing
Genpact's operating results to that of its competitors. However,
considering Genpact's frequent acquisitions of varying scale and
size, and the difficulty in predicting expenses relating to
acquisitions and the amortization of acquired intangibles thereof,
since July 2012 Genpact's management
has used financial information that exclude all acquisition-related
expenses and amortization of acquired intangibles for its internal
management reporting, budgeting and decision-making purposes,
including comparing Genpact's operating results to those of its
competitors. For the same reasons, since April 2016 Genpact's management has excluded the
impairment of acquired intangible assets from the financial
information it uses for internal management purposes.
Acquisition-related expenses are excluded in the period in which an
acquisition is consummated.
Genpact's management also uses financial information that
exclude stock-based compensation expense. Due to varying available
valuation methodologies, subjective assumptions and the variety of
award types that companies can use when adopting ASC 718
"Compensation-Stock Compensation," Genpact's management believes
that providing non-GAAP financial measures that exclude such
expenses allows investors to make additional comparisons between
Genpact's operating results and those of other companies.
Additionally, in its calculations of such non-GAAP financial
measures, Genpact's management has adjusted other income and
expenses, certain gains, losses and impairment charges attributable
to equity-method investments, and gains or losses attributable to
non-controlling interests because management believes that the
Company's results after taking into account these adjustments more
accurately reflect the Company's ongoing operations. For the
purpose of calculating adjusted diluted earnings per share, the
combined current and deferred tax effect is determined by
multiplying each pre-tax adjustment by the applicable statutory
income tax rate.
Genpact's management provides information about revenues on a
constant currency basis so that the revenues may be viewed without
the impact of foreign currency exchange rate fluctuations compared
to prior fiscal periods, thereby facilitating period-to-period
comparisons of the Company's true business performance. Revenue
growth on a constant currency basis is calculated by restating
current-period activity using the prior fiscal period's foreign
currency exchange rates adjusted for hedging gains/losses in such
period.
Accordingly, Genpact believes that the presentation of
adjusted income from operations, adjusted income from operations
margin, adjusted diluted earnings per share and revenue growth on a
constant currency basis, when read in conjunction with the
Company's reported results, can provide useful supplemental
information to investors and management regarding financial and
business trends relating to its financial condition and results of
operations.
A limitation of using adjusted income from operations and
adjusted income from operations margin versus income from
operations and income from operations margin calculated in
accordance with GAAP is that these non-GAAP financial measures
exclude certain recurring costs and certain other charges, namely
stock-based compensation expense and amortization and impairment of
acquired intangibles. Management compensates for this limitation by
providing specific information on the GAAP amounts excluded from
adjusted income from operations and adjusted income from operations
margin.
The following tables show the reconciliation of these non-GAAP
financial measures to the most directly comparable GAAP measures
for the three and nine months ended September 30, 2018 and 2019:
Reconciliation of
Income from Operations/Margin to Adjusted Income
from
Operations/Margin
(Unaudited)
(In
thousands)
|
|
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
Income from
operations
|
|
$
|
94,028
|
|
|
$
|
113,584
|
|
|
$
|
237,311
|
|
|
$
|
309,858
|
|
Add: Stock-based
compensation
|
|
|
13,434
|
|
|
|
21,320
|
|
|
|
32,158
|
|
|
|
61,306
|
|
Add: Amortization of
acquired intangible assets
|
|
|
8,988
|
|
|
|
6,712
|
|
|
|
27,959
|
|
|
|
22,690
|
|
Add:
Acquisition-related expenses
|
|
|
2,362
|
|
|
|
—
|
|
|
|
2,362
|
|
|
|
967
|
|
Add: Other income
(expense), net
|
|
|
5,385
|
|
|
|
704
|
|
|
|
30,683
|
|
|
|
5,067
|
|
Less: Equity-method
investment activity, net
|
|
|
(7)
|
|
|
|
(5)
|
|
|
|
(22)
|
|
|
|
(16)
|
|
Add: Net loss
(income) attributable to redeemable non-controlling
interest
|
|
|
—
|
|
|
|
—
|
|
|
|
761
|
|
|
|
—
|
|
Adjusted income
from operations
|
|
$
|
124,190
|
|
|
$
|
142,315
|
|
|
$
|
331,212
|
|
|
$
|
399,872
|
|
Income from
operations margin
|
|
|
12.6%
|
|
|
|
12.8%
|
|
|
|
11.0%
|
|
|
|
12.0%
|
|
Adjusted income
from operations margin
|
|
|
16.6%
|
|
|
|
16.0%
|
|
|
|
15.3%
|
|
|
|
15.5%
|
|
Reconciliation of
Diluted EPS to Adjusted Diluted EPS8
(Unaudited)
(Per share
data)
|
|
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
Diluted
EPS
|
|
$
|
0.38
|
|
|
$
|
0.45
|
|
|
$
|
1.04
|
|
|
$
|
1.14
|
|
Add: Stock-based
compensation
|
|
|
0.07
|
|
|
|
0.11
|
|
|
|
0.17
|
|
|
|
0.31
|
|
Add: Amortization of
acquired intangible assets
|
|
|
0.05
|
|
|
|
0.03
|
|
|
|
0.14
|
|
|
|
0.12
|
|
Add:
Acquisition-related expenses
|
|
|
0.01
|
|
|
|
—
|
|
|
|
0.01
|
|
|
|
—
|
|
Less: Tax impact on
stock-based compensation
|
|
|
(0.02)
|
|
|
|
(0.02)
|
|
|
|
(0.05)
|
|
|
|
(0.07)
|
|
Less: Tax impact on
amortization of acquired intangibles
|
|
|
(0.01)
|
|
|
|
(0.01)
|
|
|
|
(0.04)
|
|
|
|
(0.03)
|
|
Less: Tax impact on
acquisition-related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Adjusted diluted
EPS
|
|
$
|
0.48
|
|
|
$
|
0.56
|
|
|
$
|
1.28
|
|
|
$
|
1.48
|
|
The following tables show the reconciliation of forward-looking
non-GAAP financial measures to the most directly comparable GAAP
measures for the year ending December 31,
2019:
Reconciliation of
Outlook for Income from Operations Margin to Adjusted Income
from
Operations
Margin
(Unaudited)
|
|
|
|
Year
ending
December
31, 2019
|
Income from
operations margin
|
|
|
12.1%
|
Add: Estimated
stock-based compensation
|
|
|
2.4%
|
Add: Estimated
amortization of acquired intangible assets
|
|
|
0.8%
|
Add: Estimated
acquisition-related expenses
|
|
|
0.2%
|
Add: Estimated other
income (expense), net
|
|
|
0.5%
|
Less: Estimated
equity-method investment activity, net
|
|
—
|
Adjusted income
from operations margin
|
|
|
16.0%
|
Reconciliation of
Outlook for Diluted EPS to Adjusted Diluted
EPS9
(Unaudited)
(Per share
data)
|
|
|
|
Year ending
December 31, 2019
|
|
|
Lower
|
|
Upper
|
Diluted
EPS
|
|
$
|
1.54
|
|
$
|
1.56
|
Add: Estimated
stock-based compensation
|
|
|
0.42
|
|
|
0.42
|
Add: Estimated
amortization of acquired intangible assets
|
|
|
0.15
|
|
|
0.15
|
Add: Estimated
acquisition-related expenses
|
|
|
0.04
|
|
|
0.04
|
Less: Estimated tax
impact on stock-based compensation
|
|
|
(0.09)
|
|
|
(0.09)
|
Less: Estimated tax
impact on amortization of acquired intangibles
|
|
|
(0.04)
|
|
|
(0.04)
|
Less: Estimated tax
impact on acquisition-related expenses
|
|
—
|
|
—
|
Adjusted diluted
EPS
|
|
$
|
2.02
|
|
$
|
2.04
|
__________________________
1 As reported and on a constant currency basis.
2 Adjusted diluted earnings per share is a non-GAAP
measure. A reconciliation of GAAP diluted earnings per share to
adjusted diluted earnings per share is attached to this
release.
3 Revenue growth on a constant currency basis is a
non-GAAP measure and is calculated by restating current-period
activity using the prior fiscal period's foreign currency exchange
rates, adjusted for hedging gains/losses in such period.
4 Adjusted income from operations and adjusted income
from operations margin are non-GAAP measures. Reconciliations of
GAAP income from operations to adjusted income from operations and
GAAP income from operations margin to adjusted income from
operations margin are attached to this release.
5 During the nine months ended September 30, 2019, GE divested certain
businesses that Genpact continues to serve. We have reclassified
the revenue from such GE-divested businesses as Global Client
revenue. If we had not reclassified such revenue, Global Client
revenues for the quarter ended September 30,
2019 would have been $764
million and GE revenues would have been $125 million.
6 Adjusted income from operations margin is a
non-GAAP measure. A reconciliation of the outlook for GAAP
income from operations margin to adjusted income from operations
margin is attached to this release.
7 Adjusted diluted earnings per share is a non-GAAP
measure. A reconciliation of the outlook for GAAP diluted
earnings per share to adjusted diluted earnings per share is
attached to this release.
8 Due to rounding, the numbers presented in this
table may not add up precisely to the totals provided.
9 Due to rounding, the numbers presented in this
table may not add up precisely to the totals provided.
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SOURCE Genpact