NEW YORK & MUMBAI, India--(BUSINESS WIRE)--Oct. 20, 2016--
WNS (Holdings) Limited (WNS) (NYSE: WNS), a leading provider of global
Business Process Management (BPM) services, today announced results for
the fiscal 2017 second quarter ended September 30, 2016.
|
Highlights – Fiscal 2017 Second Quarter:
|
GAAP Financials
-
Revenue of $149.8 million, up 6.2% from $141.0 million in Q2
of last year and up 1.2% from $148.0 million last quarter
-
Profit of $12.6 million, compared to $15.5 million in Q2 of
last year and $12.2 million last quarter
-
Diluted earnings per ADS of $0.24, compared to $0.29 in Q2 of
last year and $0.23 last quarter
Non-GAAP Financial Measures*
-
Revenue less repair payments of $143.7 million, up 7.8% from
$133.3 million in Q2 of last year and up 2.1% from $140.8
million last quarter
-
The method of calculating our non-GAAP financial measures of
Adjusted Net Income (ANI) and Adjusted diluted earnings per ADS
has changed to include the impact of tax effect on amortization
of intangibles and share based compensation
-
ANI of $22.0 million, compared to $24.2 million in Q2 of last
year and $21.1 million last quarter
-
As per previous method of calculation (excluding tax
effect on non-GAAP adjustments), ANI of $25.7 million,
compared to $27.1 million in Q2 of last year and $23.9
million last quarter
-
Adjusted diluted earnings per ADS of $0.42, compared to $0.46
in Q2 of last year and $0.40 last quarter
-
As per previous method of calculation (excluding tax
effect on non-GAAP adjustments), Adjusted diluted earnings
per ADS of $0.49, compared to $0.51 in Q2 of last year and
$0.45 last quarter
Other Metrics
-
Added 6 new clients in the quarter, expanded 11 existing
relationships
-
Days sales outstanding (DSO) at 30 days
-
Global headcount of 31,719 as of September 30, 2016
|
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 second quarter was $149.8 million, representing a 6.2%
increase versus Q2 of last year and a 1.2% increase from the previous
quarter. Revenue less repair payments* in the second quarter was $143.7
million, an increase of 7.8% year-over-year and 2.1% sequentially.
Excluding exchange rate impacts, constant currency revenue less repair
payments* in the fiscal second quarter grew 16.0% versus Q2 of last
year, and 4.6% sequentially. Year-over-year, fiscal Q2 revenue was
adversely impacted by depreciation in the British Pound and South
African Rand against the US Dollar. These headwinds were more than
offset by revenue growth in the Healthcare, Travel, Shipping and
Logistics, and Retail/CPG verticals. Sequentially, revenue improvement
in the Travel and Healthcare verticals was partially offset by currency
headwinds net of hedging.
Operating margin in the second quarter was 10.2%, as compared to 13.7%
in Q2 of last year and 9.8% reported in the previous quarter. Second
quarter adjusted operating margin* was 19.8%, versus 23.1% in Q2 of last
year and 18.6% last quarter. On a year-over-year basis, these margins
were pressured by currency movements net of hedging, the impact of our
annual wage increases, and increased compensation associated with the
India Payment of Bonus Act. Partially offsetting these costs was
increased operating leverage from higher volumes. Sequentially, margins
expanded as a result of productivity improvements, which more than
offset costs associated with wage increases and reduced seat utilization.
Commencing this fiscal 2017 second quarter, we have revised the method
of calculating our non-GAAP ANI and non-GAAP adjusted diluted earnings
per ADS to include the income tax effect on the adjustments to our GAAP
profit (being amortization of intangible assets and share-based
compensation expense). We have applied this revised method of
calculating our non-GAAP ANI and non-GAAP adjusted diluted earnings per
ADS for the comparative periods to provide consistency across the
periods presented in this release. The tables at the end of this release
reconcile our GAAP operating results to our non-GAAP financial measures,
as well as to our non-GAAP financial measures as previously calculated.
GAAP Profit in the fiscal second quarter was $12.6 million, as compared
to $15.5 million in Q2 of last year and $12.2 million in the previous
quarter. Adjusted net income (ANI)* in Q2 was $22.0 million, down $2.2
million as compared to Q2 of last year and up $0.9 million from the
previous quarter.
From a balance sheet perspective, WNS ended Q2 with $159.6 million in
cash and investments and no debt. In the second quarter, the company
generated $18.0 million in cash from operations, and had $6.9 million in
capital expenditures. During Q2, WNS repurchased 395,444 ADSs at an
average price of $29.43 per ADS, totaling $11.7 million. Days sales
outstanding were 30 days, as compared to 27 days in Q2 of last year and
29 days reported in the previous quarter.
“WNS continues to deliver strong financial and operating performance,
including solid constant currency revenue growth and operating margins.
Our underlying business momentum remains healthy, and we are seeing
broad-based opportunity across our key service offerings, geographies
and verticals,” said Keshav Murugesh, WNS’s Chief Executive Officer.
“While depreciation in the British Pound is pressuring our financials
from a currency perspective, to date we have not seen an impact to our
core business from Brexit. This includes the new deal pipeline, contract
awards, project ramps and volumes with existing clients. Looking
forward, WNS expects to leverage our strong balance sheet and to
continue our investments in strategic focus areas such as domain
expertise, technology-enabled solutions, digital offerings and analytics
with the goal of optimizing stakeholder value.”
Fiscal 2017 Guidance
WNS is updating guidance for the fiscal year ending March 31, 2017 as
follows:
-
Revenue less repair payments* is expected to be between $551 million
and $567 million, up from $531.0 million in fiscal 2016. This assumes
an average GBP to USD exchange rate of 1.24 for the remainder of
fiscal 2017.
-
The method of calculating our non-GAAP financial measures of ANI* and
Adjusted diluted earnings per ADS* has changed to include the impact
of tax effect on amortization of intangibles and share based
compensation.
-
ANI* is expected to range between $84 million and $89 million versus
$90.9 million in fiscal 2016. This assumes an average USD to INR
exchange rate of 66.5 for the remainder of fiscal 2017.
-
As per previous method of calculation (excluding tax effect on
non-GAAP adjustments), ANI* is expected to be in the range of $95
million and $100 million versus $103.0 million in fiscal 2016.
-
Based on a diluted share count of 52.5 million shares, the company
expects adjusted diluted earnings* per ADS to be in the range of $1.60
to $1.70 versus $1.69 in fiscal 2016.
-
As per previous method of calculation (excluding tax effect on
non-GAAP adjustments), adjusted diluted earnings* per ADS is
expected to be in the range of $1.81 to $1.91 versus $1.92 in
fiscal 2016.
“The company has updated our forecast for fiscal 2017 based on current
visibility levels and exchange rates,” said Sanjay Puria, WNS’s Chief
Financial Officer. “Our revised guidance for the year reflects growth in
revenue less repair payments* of 4% to 7%, or 10% to 14% on a constant
currency* basis. We currently have over 98% visibility to the midpoint
of the range.”
Conference Call
WNS will host a conference call on October 20, 2016 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 90132407. A replay will be
available for one week following the call at +1-855-859-2056;
international dial-in +1-404-537-3406; passcode 90132407, 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 global business process
management company. WNS offers business value to 200+ global clients by
combining operational excellence with deep domain expertise in key
industry verticals including Travel, Insurance, Banking and Financial
Services, Manufacturing, Retail and Consumer Packaged Goods, Shipping
and Logistics, Healthcare and Utilities. WNS delivers an entire spectrum
of business process management services such as finance and accounting,
customer interaction services, technology solutions, research and
analytics and industry specific back office and front office processes.
As of September 30, 2016, WNS had 31,719 professionals across 42
delivery centers worldwide including China, Costa Rica, India,
Philippines, Poland, Romania, South Africa, Sri Lanka, 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 2017
guidance and 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 liability arising from fraud or unauthorized disclosure
of sensitive or confidential client and customer data; our ability to
attract and retain clients; 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 filed on May 12, 2016 with 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
|
|
|
|
|
Sep 30, 2016
|
|
Sep 30, 2015
|
|
Jun 30, 2016
|
Revenue
|
|
|
|
$
|
149.8
|
|
|
$
|
141.0
|
|
|
$
|
148.0
|
|
Cost of revenue
|
|
|
|
|
99.7
|
|
|
|
90.5
|
|
|
|
98.7
|
|
Gross profit
|
|
|
|
|
50.1
|
|
|
|
50.5
|
|
|
|
49.3
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing expenses
|
|
|
|
|
8.0
|
|
|
|
8.0
|
|
|
|
7.7
|
|
General and administrative expenses
|
|
|
|
|
22.1
|
|
|
|
20.4
|
|
|
|
20.9
|
|
Foreign exchange loss/ (gain), net
|
|
|
|
|
(2.5
|
)
|
|
|
(3.6
|
)
|
|
|
(0.1
|
)
|
Amortization of intangible assets
|
|
|
|
|
7.2
|
|
|
|
6.5
|
|
|
|
6.3
|
|
Operating profit
|
|
|
|
|
15.3
|
|
|
|
19.3
|
|
|
|
14.5
|
|
Other income, net
|
|
|
|
|
(2.1
|
)
|
|
|
(1.8
|
)
|
|
|
(2.3
|
)
|
Finance expense
|
|
|
|
|
0.0
|
|
|
|
0.1
|
|
|
|
0.1
|
|
Profit before income taxes
|
|
|
|
|
17.3
|
|
|
|
21.0
|
|
|
|
16.8
|
|
Provision for income taxes
|
|
|
|
|
4.7
|
|
|
|
5.5
|
|
|
|
4.6
|
|
Profit
|
|
|
|
$
|
12.6
|
|
|
$
|
15.5
|
|
|
$
|
12.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share of ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.25
|
|
|
$
|
0.30
|
|
|
$
|
0.24
|
|
Diluted
|
|
|
|
$
|
0.24
|
|
|
$
|
0.29
|
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WNS (HOLDINGS) LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited, amounts in millions, except share and per share
data)
|
|
|
|
|
As at Sep 30, 2016
|
|
|
As at Mar 31, 2016
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
53.9
|
|
|
$
|
41.9
|
|
Investments
|
|
|
|
105.7
|
|
|
|
133.0
|
|
Trade receivables, net
|
|
|
|
57.6
|
|
|
|
54.9
|
|
Unbilled revenue
|
|
|
|
45.0
|
|
|
|
44.3
|
|
Funds held for clients
|
|
|
|
11.0
|
|
|
|
11.9
|
|
Derivative assets
|
|
|
|
24.7
|
|
|
|
13.9
|
|
Prepayments and other current assets
|
|
|
|
25.3
|
|
|
|
22.6
|
|
Total current assets
|
|
|
|
323.2
|
|
|
|
322.5
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
85.6
|
|
|
|
76.2
|
|
Intangible assets
|
|
|
|
22.8
|
|
|
|
27.1
|
|
Property and equipment
|
|
|
|
49.2
|
|
|
|
50.4
|
|
Derivative assets
|
|
|
|
7.1
|
|
|
|
4.8
|
|
Deferred tax assets
|
|
|
|
20.2
|
|
|
|
22.5
|
|
Other non-current assets
|
|
|
|
28.5
|
|
|
|
21.8
|
|
Total non-current assets
|
|
|
|
213.3
|
|
|
|
203.0
|
|
TOTAL ASSETS
|
|
|
$
|
536.6
|
|
|
$
|
525.5
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
|
$
|
18.5
|
|
|
$
|
19.9
|
|
Provisions and accrued expenses
|
|
|
|
23.6
|
|
|
|
24.7
|
|
Derivative liabilities
|
|
|
|
4.0
|
|
|
|
3.3
|
|
Pension and other employee obligations
|
|
|
|
38.5
|
|
|
|
44.8
|
|
Deferred revenue
|
|
|
|
3.5
|
|
|
|
2.9
|
|
Current taxes payable
|
|
|
|
5.0
|
|
|
|
1.7
|
|
Other liabilities
|
|
|
|
10.1
|
|
|
|
6.0
|
|
Total current liabilities
|
|
|
|
103.2
|
|
|
|
103.3
|
|
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
Derivative liabilities
|
|
|
|
0.7
|
|
|
|
0.5
|
|
Pension and other employee obligations
|
|
|
|
10.5
|
|
|
|
6.9
|
|
Deferred revenue
|
|
|
|
0.3
|
|
|
|
0.3
|
|
Other non-current liabilities
|
|
|
|
8.3
|
|
|
|
4.5
|
|
Deferred tax liabilities
|
|
|
|
4.1
|
|
|
|
1.8
|
|
Total non-current liabilities
|
|
|
|
23.9
|
|
|
|
13.9
|
|
TOTAL LIABILITIES
|
|
|
|
127.1
|
|
|
|
117.3
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
Share capital (ordinary shares $0.16 (10 pence) par value,
authorized 60,000,000 shares; issued: 53,225,479 shares and
52,406,304 shares; outstanding: 50,980,035 shares and 51,306,304
shares; each as at September 30, 2016 and March 31, 2016,
respectively)
|
|
|
|
8.3
|
|
|
|
8.2
|
|
Share premium
|
|
|
|
325.9
|
|
|
|
306.9
|
|
Retained earnings
|
|
|
|
265.0
|
|
|
|
240.2
|
|
Other components of equity
|
|
|
|
(124.6
|
)
|
|
|
(116.7
|
)
|
Total shareholders’ equity including shares held in treasury
|
|
|
|
474.6
|
|
|
|
438.6
|
|
Less: 2,245,444 shares as of September 30, 2016 and 1,100,000 shares
as of March 31, 2016, held in treasury, at cost
|
|
|
|
(65.1
|
)
|
|
|
(30.5
|
)
|
Total shareholders’ equity
|
|
|
|
409.5
|
|
|
|
408.2
|
|
TOTAL LIABILITIES AND EQUITY
|
|
|
$
|
536.6
|
|
|
$
|
525.5
|
|
|
|
|
|
|
|
|
|
|
|
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 12, 2016.
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 12, 2016.
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 excluding
amortization of intangible assets and share-based compensation expense)
as a percentage of revenue less repair payments, and (2) ANI, which is
calculated as profit excluding amortization of intangible assets and
share-based compensation expense 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 it does not believe are 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
|
|
Three months ended
Sep 30, 2016 compared to
|
|
|
|
Sep 30, 2016
|
|
|
Sep 30, 2015
|
|
|
Jun 30, 2016
|
|
|
Sep 30, 2015
|
Jun 30, 2016
|
|
|
|
(Amounts in millions)
|
|
(% growth)
|
Revenue (GAAP)
|
|
|
$
|
149.8
|
|
|
$
|
141.0
|
|
|
$
|
148.0
|
|
|
|
6.2
|
%
|
1.2
|
%
|
|
Less: Payments to repair centers
|
|
|
|
6.0
|
|
|
|
7.7
|
|
|
|
7.2
|
|
|
|
(21.8
|
%)
|
(15.9
|
%)
|
Revenue less repair payments (Non-GAAP)
|
|
|
$
|
143.7
|
|
|
$
|
133.3
|
|
|
$
|
140.8
|
|
|
|
7.8
|
%
|
2.1
|
%
|
|
Exchange rate impact
|
|
|
|
(1.8
|
)
|
|
|
(11.0
|
)
|
|
|
(5.1
|
)
|
|
|
|
|
|
Constant currency revenue less repair payments (Non-GAAP)
|
|
|
$
|
141.9
|
|
|
$
|
122.3
|
|
|
$
|
135.7
|
|
|
|
16.0
|
%
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of cost of revenue (GAAP to non-GAAP)
|
|
|
|
|
Three months ended
|
|
|
|
Sep 30,
2016
|
|
|
Sep 30, 2015
|
|
|
Jun 30, 2016
|
|
|
|
(Amounts in millions)
|
Cost of revenue (GAAP)
|
|
|
$
|
99.7
|
|
|
$
|
90.5
|
|
$
|
98.7
|
Less: Payments to repair centers
|
|
|
|
6.0
|
|
|
|
7.7
|
|
|
7.2
|
Less: Share-based compensation expense
|
|
|
|
0.8
|
|
|
|
0.4
|
|
|
0.6
|
Adjusted cost of revenue (excluding payment to
repair centers and share-based compensation
expense) (Non-GAAP)
|
|
|
$
|
92.9
|
|
|
$
|
82.4
|
|
$
|
90.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of gross profit (GAAP to non-GAAP)
|
|
|
|
|
Three months ended
|
|
|
|
Sep 30,
2016
|
|
|
Sep 30, 2015
|
|
|
Jun 30, 2016
|
|
|
|
(Amounts in millions)
|
Gross profit (GAAP)
|
|
|
$
|
50.1
|
|
|
$
|
50.5
|
|
$
|
49.3
|
Add: Share-based compensation expense
|
|
|
|
0.8
|
|
|
|
0.4
|
|
|
0.6
|
Adjusted gross profit (excluding share-based compensation expense)
(Non-GAAP)
|
|
|
$
|
50.8
|
|
|
$
|
50.9
|
|
$
|
49.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Sep 30, 2016
|
|
|
Sep 30, 2015
|
|
|
Jun 30, 2016
|
Gross profit as a percentage of revenue (GAAP)
|
|
|
|
33.4
|
%
|
|
|
|
35.8
|
%
|
|
|
33.3
|
%
|
Adjusted gross profit (excluding share-based compensation expense)
as a percentage of revenue less repair payments (Non-GAAP)
|
|
|
|
35.4
|
%
|
|
|
|
38.2
|
%
|
|
|
35.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of selling and marketing expenses (GAAP to
non-GAAP)
|
|
|
|
|
Three months ended
|
|
|
|
Sep 30,
2016
|
|
|
Sep 30, 2015
|
|
|
Jun 30, 2016
|
|
|
|
(Amounts in millions)
|
Selling and marketing expenses (GAAP)
|
|
|
$
|
8.0
|
|
|
$
|
8.0
|
|
$
|
7.7
|
Less: Share-based compensation expense
|
|
|
|
0.5
|
|
|
|
0.2
|
|
|
0.3
|
Adjusted selling and marketing expenses (excluding share-based
compensation expense) (Non-GAAP)
|
|
|
$
|
7.5
|
|
|
$
|
7.8
|
|
$
|
7.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Sep 30,
2016
|
|
|
Sep 30, 2015
|
|
|
Jun 30, 2016
|
Selling and marketing expenses as a percentage of revenue (GAAP)
|
|
|
|
5.4
|
%
|
|
|
|
5.7
|
%
|
|
|
5.2
|
%
|
Adjusted selling and marketing expenses (excluding share-based
compensation expense) as a percentage of revenue less repair
payments (Non-GAAP)
|
|
|
|
5.2
|
%
|
|
|
|
5.9
|
%
|
|
|
5.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of general and administrative expenses (GAAP to
non-GAAP)
|
|
|
|
|
Three months ended
|
|
|
|
Sep 30,
2016
|
|
|
Sep 30, 2015
|
|
|
Jun 30, 2016
|
|
|
|
(Amounts in millions)
|
General and administrative expenses (GAAP)
|
|
|
$
|
22.1
|
|
|
$
|
20.4
|
|
$
|
20.9
|
Less: Share-based compensation expense
|
|
|
|
4.7
|
|
|
|
4.5
|
|
|
4.5
|
Adjusted general and administrative expenses (excluding
share-based compensation expense) (Non-GAAP)
|
|
|
$
|
17.5
|
|
|
$
|
15.8
|
|
$
|
16.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Sep 30,
2016
|
|
|
Sep 30, 2015
|
|
|
Jun 30, 2016
|
General and administrative expenses as a percentage of revenue (GAAP)
|
|
|
|
14.8%
|
|
|
|
14.5%
|
|
|
14.1%
|
Adjusted general and administrative expenses (excluding share-based
compensation expense) as a percentage of revenue less repair
payments (Non-GAAP)
|
|
|
|
12.1%
|
|
|
|
11.9%
|
|
|
11.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating profit (GAAP to non-GAAP)
|
|
|
|
|
Three months ended
|
|
|
|
Sep 30,
2016
|
|
|
Sep 30, 2015
|
|
|
Jun 30, 2016
|
|
|
|
(Amounts in millions)
|
Operating profit (GAAP)
|
|
|
$
|
15.3
|
|
|
$
|
19.3
|
|
$
|
14.5
|
Add: Amortization of intangible assets
|
|
|
|
7.2
|
|
|
|
6.5
|
|
|
6.3
|
Add: Share-based compensation expense
|
|
|
|
6.0
|
|
|
|
5.1
|
|
|
5.4
|
Adjusted operating profit (excluding amortization of intangible
assets and share-based compensation expense) (Non-GAAP)
|
|
|
$
|
28.4
|
|
|
$
|
30.8
|
|
$
|
26.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Sep 30,
2016
|
|
|
Sep 30, 2015
|
|
|
Jun 30, 2016
|
Operating profit as a percentage of revenue (GAAP)
|
|
|
|
10.2%
|
|
|
|
13.7%
|
|
|
9.8%
|
Adjusted operating profit (excluding amortization of intangible
assets and share-based compensation expense) as a percentage of
revenue less repair payments (Non-GAAP)
|
|
|
|
19.8%
|
|
|
|
23.1%
|
|
|
18.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of profit (GAAP) to ANI (non-GAAP)
|
|
|
|
|
Three months ended
|
|
|
|
Sep 30,
2016
|
|
|
Sep 30, 2015
|
|
|
Jun 30, 2016
|
|
|
|
(Amounts in millions)
|
Profit (GAAP)
|
|
|
$
|
12.6
|
|
|
$
|
15.5
|
|
$
|
12.2
|
Add: Amortization of intangible assets
|
|
|
|
7.2
|
|
|
|
6.5
|
|
|
6.3
|
Add: Share-based compensation expense
|
|
|
|
6.0
|
|
|
|
5.1
|
|
|
5.4
|
Adjusted net income (Non-GAAP) as per our previous method of
calculation
|
|
|
$
|
25.7
|
|
|
$
|
27.1
|
|
$
|
23.9
|
Less: Tax impact on amortization of intangible assets(1)
|
|
|
|
2.0
|
|
|
|
1.7
|
|
|
1.6
|
Less: Tax impact on share-based compensation expense(1)
|
|
|
|
1.7
|
|
|
|
1.3
|
|
|
1.2
|
Adjusted net income (excluding amortization of intangible assets
and share-based compensation expense including tax effect thereon)
(Non-GAAP)
|
|
|
$
|
22.0
|
|
|
$
|
24.2
|
|
$
|
21.1
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
Sep 30, 2016
|
|
|
Sep 30, 2015
|
|
|
Jun 30, 2016
|
Profit as a percentage of revenue (GAAP)
|
|
|
|
8.4
|
%
|
|
|
|
11.0
|
%
|
|
|
8.2
|
%
|
Adjusted net income as a percentage of revenue less repair payments
(Non-GAAP) as per our previous method of calculation
|
|
|
|
17.9
|
%
|
|
|
|
20.3
|
%
|
|
|
17.0
|
%
|
Adjusted net income (excluding amortization of intangible assets
and share-based compensation expense including tax effect thereon)
as a percentage of revenue less repair payments (Non-GAAP)
|
|
|
|
15.3
|
%
|
|
|
|
18.1
|
%
|
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of basic income per ADS (GAAP to non-GAAP)
|
|
|
|
|
Three months ended
|
|
|
|
Sep 30,
2016
|
|
Sep 30, 2015
|
|
Jun 30, 2016
|
Basic earnings per ADS (GAAP)
|
|
|
$
|
0.25
|
|
|
$
|
0.30
|
|
$
|
0.24
|
Add: Adjustments for amortization of intangible assets and
share-based compensation expense
|
|
|
|
0.25
|
|
|
|
0.23
|
|
|
0.23
|
Adjusted basic earnings per ADS (Non-GAAP) as per previous method
of calculation
|
|
|
$
|
0.50
|
|
$
|
|
0.53
|
|
$
|
0.47
|
Less: Tax impact on amortization of intangible assets and
share-based compensation expense
|
|
|
|
0.07
|
|
|
|
0.06
|
|
|
0.05
|
Adjusted basic net income per ADS (excluding amortization of
intangible assets and share-based compensation expense including tax
effect thereon) (Non-GAAP)
|
|
|
$
|
0.43
|
|
|
$
|
0.47
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of diluted income per ADS (GAAP to non-GAAP)
|
|
|
|
|
Three months ended
|
|
|
|
Sep 30,
2016
|
|
|
Sep 30, 2015
|
|
Jun 30, 2016
|
Diluted earnings per ADS (GAAP)
|
|
|
$
|
0.24
|
|
|
$
|
0.29
|
|
$
|
0.23
|
Add: Adjustments for amortization of intangible assets and
share-based compensation expense
|
|
|
|
0.25
|
|
|
|
0.22
|
|
|
0.22
|
Adjusted diluted earnings per ADS (Non-GAAP) as per previous method
of calculation
|
|
|
$
|
0.49
|
|
|
$
|
0.51
|
|
$
|
0.45
|
Less: Tax impact on amortization of intangible assets and
share-based compensation expense
|
|
|
|
0.07
|
|
|
|
0.06
|
|
|
0.05
|
Adjusted diluted net income per ADS (excluding amortization of
intangible assets and share-based compensation expense, including
tax effect thereon) (Non-GAAP)
|
|
|
$
|
0.42
|
|
|
$
|
0.46
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|

View source version on businesswire.com: http://www.businesswire.com/news/home/20161020005612/en/
Source: WNS
WNS (Holdings) Limited David Mackey, +1 (201) 942-6261 Corporate
SVP–Finance & Head of Investor Relations david.mackey@wns.com or Archana
Raghuram, +91 (22) 4095 2397 Head – Corporate Communications archana.raghuram@wns.com;
pr@wns.com
|