NEW YORK & MUMBAI, India--(BUSINESS WIRE)--Jan. 17, 2019--
WNS (Holdings) Limited (WNS) (NYSE: WNS), a leading provider of global
Business Process Management (BPM) services, today announced results for
the fiscal 2019 third quarter ended December 31, 2018.
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Highlights – Fiscal 2019 Third Quarter:
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|
GAAP Financials
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•
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|
Revenue of $199.7 million, up 5.9% from $188.6 million in Q3 of
last year and up 0.3% from $199.1 million last quarter
|
|
•
|
|
Profit of $28.6 million, compared to $26.3 million in Q3 of
last year and $24.8 million last quarter
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•
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|
Diluted earnings per ADS of $0.55, compared to $0.51 in Q3 of
last year and $0.48 last quarter
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|
|
Non-GAAP Financial Measures*
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|
•
|
|
Revenue less repair payments of $195.9 million, up 5.8% from
$185.2 million in Q3 of last year and up 0.2% from $195.5 million
last quarter
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•
|
|
Adjusted Net Income (ANI) of $38.0 million, compared to $34.2
million in Q3 of last year and $33.7 million last quarter
|
|
•
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|
Adjusted diluted earnings per ADS of $0.73, compared to $0.66
in Q3 of last year and $0.65 last quarter
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Other Metrics
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•
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Added 4 new clients in the quarter, expanded 6 existing
relationships
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•
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Days sales outstanding (DSO) at 32 days
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•
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Global headcount of 38,892 as of December 31, 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 third quarter was $199.7 million, representing a 5.9%
increase versus Q3 of last year and a 0.3% increase from the previous
quarter. Revenue less repair payments* in the third quarter was $195.9
million, an increase of 5.8% year-over-year and a 0.2% increase
sequentially. Excluding exchange rate impacts, constant currency revenue
less repair payments* in the fiscal third quarter grew 9.1% versus Q3 of
last year and 0.1% sequentially. Year-over-year, fiscal Q3 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, organic revenue
growth was largely offset by seasonality in our travel business.
Operating margin in the third quarter was 16.7%, as compared to 13.6% in
Q3 of last year and 14.5% in the previous quarter. On a year-over-year
basis, margin improvement was the result of increased productivity,
favorable currency movements net of hedging, and operating leverage on
higher volumes. These benefits more than offset the impact of our annual
wage increases. Sequentially, margins improved due to increased
productivity and favorable currency movements net of hedging.
Third quarter adjusted operating margin* was 23.0%, versus 19.9% in Q3
of last year and 21.0% last quarter. Explanations for the adjusted
operating margin* movements on a year-over-year and sequential basis are
largely the same as described for GAAP operating margins above.
Profit in the fiscal third quarter was $28.6 million, as compared to
$26.3 million in Q3 of last year and $24.8 million in the previous
quarter. Adjusted net income (ANI)* in Q3 was $38.0 million, up $3.8
million as compared to Q3 of last year and up $4.3 million from the
previous quarter. In addition to the operating margin favorability noted
previously, year-over-year profit and ANI* were further increased by
higher interest income and lower debt expense. These items were
partially offset by a higher effective tax rate this quarter, as Q3 of
last year benefitted $5.2 million from a net provision for tax
adjustments associated with the 2017 US Tax Reform bill. The amount was
finalized in the third quarter of this fiscal year, and resulted in an
additional favorable tax adjustment of $0.4 million. Sequentially,
profit and ANI* improved as a result of operating margin favorability,
higher interest income, and a lower effective tax rate resulting from
the $0.4 million favorable tax adjustment associated with the 2017 US
Tax Reform bill and the geographic mix of profits.
From a balance sheet perspective, WNS ended Q3 with $215.2 million in
cash and investments and $75.4 million of debt. In the third quarter,
the company generated $59.5 million in cash from operations, and
incurred $4.7 million in capital expenditures. Third quarter days sales
outstanding were 32 days, as compared to 30 days reported in Q3 of last
year and 35 days in the previous quarter.
“In the fiscal third quarter, WNS continued to deliver solid financial
performance across revenue, margins, profits and cash flow. Third
quarter revenue less repair payments* grew 6% year-over-year, or 9% on
an organic, constant currency* basis, and adjusted operating margin*
expanded to 23%. Adjusted diluted earnings* per ADS increased 12% versus
the fiscal third quarter of last year, and cash from operations in the
third quarter was the highest in the company’s history,” said Keshav
Murugesh, WNS’s Chief Executive Officer. “We will continue to invest in
our business to drive differentiated positioning in a healthy BPM
marketplace, and the company remains committed to “co-creating” with our
clients to deliver long-term sustainable business value for all of our
key stakeholders.”
Fiscal 2019 Guidance
WNS is updating guidance for the fiscal year ending March 31, 2019 as
follows:
-
Revenue less repair payments* is expected to be between $787 million
and $799 million, up from $741.0 million in fiscal 2018. This assumes
an average GBP to USD exchange rate of 1.27 for the remainder of
fiscal 2019.
-
ANI* is expected to range between $137 million and $141 million versus
$118.4 million in fiscal 2018. This assumes an average USD to INR
exchange rate of 70.00 for the remainder of fiscal 2019.
-
Based on a diluted share count of 52.2 million shares, the company
expects adjusted diluted earnings* per ADS to be in the range of $2.62
to $2.70 versus $2.24 in fiscal 2018.
“The company has updated our forecast for fiscal 2019 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 6% to 8%, or 9% to 11% on a constant currency*
basis. We currently have over 99% visibility to the midpoint of the
range.”
Conference Call
WNS will host a conference call on January 17, 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 5895908. A replay will be
available for one week following the call at +1-855-859-2056;
international dial-in +1-404-537-3406; passcode 5895908, 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 350+ 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 December 31, 2018, WNS had 38,892 professionals across 57 delivery
centers worldwide including China, Costa Rica, India, Philippines,
Poland, Romania, South Africa, Spain, Sri Lanka, Turkey, 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 2019
guidance, 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.
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|
WNS (HOLDINGS) LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, amounts in millions, except share and per share
data)
|
|
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|
|
|
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|
|
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Three months ended
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|
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|
Dec 31,
2018
|
|
|
|
|
|
Dec 31,
2017
|
|
|
|
|
|
Sep 30,
2018
|
Revenue
|
|
|
|
|
|
|
|
|
$
|
199.7
|
|
|
|
|
|
$
|
188.6
|
|
|
|
|
|
$
|
199.1
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
125.2
|
|
|
|
|
|
|
124.4
|
|
|
|
|
|
|
129.0
|
|
Gross profit
|
|
|
|
|
|
|
|
|
|
74.5
|
|
|
|
|
|
|
64.1
|
|
|
|
|
|
|
70.1
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Selling and marketing expenses
|
|
|
|
|
|
|
|
|
|
10.9
|
|
|
|
|
|
|
10.6
|
|
|
|
|
|
|
11.3
|
|
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
28.2
|
|
|
|
|
|
|
28.3
|
|
|
|
|
|
|
27.9
|
|
Foreign exchange loss / (gain), net
|
|
|
|
|
|
|
|
|
|
(1.9
|
)
|
|
|
|
|
|
(4.4
|
)
|
|
|
|
|
|
(1.9
|
)
|
Amortization of intangible assets
|
|
|
|
|
|
|
|
|
|
3.9
|
|
|
|
|
|
|
3.9
|
|
|
|
|
|
|
4.0
|
|
Operating profit
|
|
|
|
|
|
|
|
|
|
33.4
|
|
|
|
|
|
|
25.7
|
|
|
|
|
|
|
28.8
|
|
Other (income) / expenses, net
|
|
|
|
|
|
|
|
|
|
(3.6
|
)
|
|
|
|
|
|
(2.5
|
)
|
|
|
|
|
|
(3.0
|
)
|
Finance expense
|
|
|
|
|
|
|
|
|
|
0.8
|
|
|
|
|
|
|
1.0
|
|
|
|
|
|
|
0.8
|
|
Profit before income taxes
|
|
|
|
|
|
|
|
|
|
36.2
|
|
|
|
|
|
|
27.2
|
|
|
|
|
|
|
31.0
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
7.6
|
|
|
|
|
|
|
0.9
|
|
|
|
|
|
|
6.2
|
|
Profit after tax
|
|
|
|
|
|
|
|
|
$
|
28.6
|
|
|
|
|
|
$
|
26.3
|
|
|
|
|
|
$
|
24.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share of ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
$
|
0.57
|
|
|
|
|
|
$
|
0.52
|
|
|
|
|
|
$
|
0.50
|
|
Diluted
|
|
|
|
|
|
|
|
|
$
|
0.55
|
|
|
|
|
|
$
|
0.51
|
|
|
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WNS (HOLDINGS) LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited, amounts in millions, except share and per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at Dec 31,
2018
|
|
|
|
|
|
As at Mar 31,
2018
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
$
|
85.3
|
|
|
|
|
|
|
$
|
99.8
|
|
Investments
|
|
|
|
|
|
|
|
|
|
49.6
|
|
|
|
|
|
|
|
121.0
|
|
Trade receivables, net
|
|
|
|
|
|
|
|
|
|
73.8
|
|
|
|
|
|
|
|
71.4
|
|
Unbilled revenue
|
|
|
|
|
|
|
|
|
|
55.7
|
|
|
|
|
|
|
|
61.7
|
|
Funds held for clients
|
|
|
|
|
|
|
|
|
|
9.9
|
|
|
|
|
|
|
|
10.1
|
|
Derivative assets
|
|
|
|
|
|
|
|
|
|
15.0
|
|
|
|
|
|
|
|
11.7
|
|
Prepayments and other current assets
|
|
|
|
|
|
|
|
|
|
20.7
|
|
|
|
|
|
|
|
24.8
|
|
Total current assets
|
|
|
|
|
|
|
|
|
|
310.0
|
|
|
|
|
|
|
|
400.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
|
|
|
|
|
130.0
|
|
|
|
|
|
|
|
135.2
|
|
Intangible assets
|
|
|
|
|
|
|
|
|
|
82.1
|
|
|
|
|
|
|
|
89.7
|
|
Property and equipment
|
|
|
|
|
|
|
|
|
|
57.4
|
|
|
|
|
|
|
|
60.6
|
|
Derivative assets
|
|
|
|
|
|
|
|
|
|
6.7
|
|
|
|
|
|
|
|
3.2
|
|
Investments
|
|
|
|
|
|
|
|
|
|
80.3
|
|
|
|
|
|
|
|
0.5
|
|
Deferred tax assets
|
|
|
|
|
|
|
|
|
|
21.9
|
|
|
|
|
|
|
|
27.4
|
|
Other non-current assets
|
|
|
|
|
|
|
|
|
|
59.0
|
|
|
|
|
|
|
|
42.4
|
|
Total non-current assets
|
|
|
|
|
|
|
|
|
|
437.5
|
|
|
|
|
|
|
|
359.0
|
|
TOTAL ASSETS
|
|
|
|
|
|
|
|
|
$
|
747.5
|
|
|
|
|
|
|
$
|
759.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
|
|
|
|
|
|
|
$
|
20.0
|
|
|
|
|
|
|
$
|
19.7
|
|
Provisions and accrued expenses
|
|
|
|
|
|
|
|
|
|
27.7
|
|
|
|
|
|
|
|
28.8
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
4.7
|
|
|
|
|
|
|
|
6.5
|
|
Pension and other employee obligations
|
|
|
|
|
|
|
|
|
|
55.6
|
|
|
|
|
|
|
|
64.6
|
|
Current portion of long-term debt
|
|
|
|
|
|
|
|
|
|
27.8
|
|
|
|
|
|
|
|
27.7
|
|
Contract liabilities
|
|
|
|
|
|
|
|
|
|
4.7
|
|
|
|
|
|
|
|
2.9
|
|
Current taxes payable
|
|
|
|
|
|
|
|
|
|
2.0
|
|
|
|
|
|
|
|
1.3
|
|
Other liabilities
|
|
|
|
|
|
|
|
|
|
14.7
|
|
|
|
|
|
|
|
15.7
|
|
Total current liabilities
|
|
|
|
|
|
|
|
|
|
157.3
|
|
|
|
|
|
|
|
167.3
|
|
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
0.5
|
|
|
|
|
|
|
|
2.3
|
|
Pension and other employee obligations
|
|
|
|
|
|
|
|
|
|
10.5
|
|
|
|
|
|
|
|
9.6
|
|
Long-term debt
|
|
|
|
|
|
|
|
|
|
47.5
|
|
|
|
|
|
|
|
61.4
|
|
Contract liabilities
|
|
|
|
|
|
|
|
|
|
1.2
|
|
|
|
|
|
|
|
0.6
|
|
Other non-current liabilities
|
|
|
|
|
|
|
|
|
|
10.4
|
|
|
|
|
|
|
|
11.7
|
|
Deferred tax liabilities
|
|
|
|
|
|
|
|
|
|
11.2
|
|
|
|
|
|
|
|
11.8
|
|
Total non-current liabilities
|
|
|
|
|
|
|
|
|
|
81.3
|
|
|
|
|
|
|
|
97.3
|
|
TOTAL LIABILITIES
|
|
|
|
|
|
|
|
|
$
|
238.6
|
|
|
|
|
|
|
$
|
264.6
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital (ordinary shares $0.16 (10 pence) par value,
authorized 60,000,000 shares; issued: 51,069,370 shares and
54,834,080 shares; each as at December 31, 2018 and March 31, 2018,
respectively)
|
|
|
|
|
|
|
|
|
|
8.0
|
|
|
|
|
|
|
|
8.5
|
|
Share premium
|
|
|
|
|
|
|
|
|
|
262.2
|
|
|
|
|
|
|
|
371.8
|
|
Retained earnings
|
|
|
|
|
|
|
|
|
|
448.5
|
|
|
|
|
|
|
|
364.4
|
|
Other components of equity
|
|
|
|
|
|
|
|
|
|
(153.4
|
)
|
|
|
|
|
|
|
(115.5
|
)
|
Total shareholders’ equity including shares held in treasury
|
|
|
|
|
|
|
|
|
$
|
565.3
|
|
|
|
|
|
|
$
|
629.2
|
|
Less: 1,100,000 shares as at December 31, 2018 and 4,400,000 shares
as at March 31, 2018, held in treasury, at cost
|
|
|
|
|
|
|
|
|
|
(56.4
|
)
|
|
|
|
|
|
|
(134.2
|
)
|
Total shareholders’ equity
|
|
|
|
|
|
|
|
|
$
|
508.9
|
|
|
|
|
|
|
$
|
495.0
|
|
TOTAL LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
$
|
747.5
|
|
|
|
|
|
|
$
|
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
|
|
|
|
|
|
Three months ended
Dec 31, 2018 compared to
|
|
|
|
|
Dec 31,
2018
|
|
|
|
|
|
Dec 31,
2017
|
|
|
|
|
|
Sep 30,
2018
|
|
|
|
|
|
Dec 31,
2017
|
|
|
|
|
|
Sep 30,
2018
|
|
|
|
|
(Amounts in millions)
|
|
|
|
|
|
(% growth)
|
Revenue (GAAP)
|
|
|
|
$
|
199.7
|
|
|
|
|
|
|
$
|
188.6
|
|
|
|
|
|
|
$
|
199.1
|
|
|
|
|
|
5.9
|
%
|
|
|
|
|
|
0.3
|
%
|
Less: Payments to repair centers
|
|
|
|
|
3.9
|
|
|
|
|
|
|
|
3.4
|
|
|
|
|
|
|
|
3.6
|
|
|
|
|
|
13.1
|
%
|
|
|
|
|
|
6.5
|
%
|
Revenue less repair payments (non-GAAP)
|
|
|
|
$
|
195.9
|
|
|
|
|
|
|
$
|
185.2
|
|
|
|
|
|
|
$
|
195.5
|
|
|
|
|
|
5.8
|
%
|
|
|
|
|
|
0.2
|
%
|
Exchange rate impact
|
|
|
|
|
(0.1
|
)
|
|
|
|
|
|
|
(5.7
|
)
|
|
|
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant currency revenue less repair payments (non-GAAP)
|
|
|
|
$
|
195.7
|
|
|
|
|
|
|
$
|
179.4
|
|
|
|
|
|
|
$
|
195.6
|
|
|
|
|
|
9.1
|
%
|
|
|
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of cost of revenue (GAAP to non-GAAP)
|
|
|
|
Three months ended
|
|
|
|
|
Dec 31,
2018
|
|
|
|
|
|
Dec 31,
2017
|
|
|
|
|
|
Sep 30,
2018
|
|
|
|
|
(Amounts in millions)
|
Cost of revenue (GAAP)
|
|
|
|
$
|
125.2
|
|
|
|
|
|
$
|
124.4
|
|
|
|
|
|
$
|
129.0
|
Less: Payments to repair centers
|
|
|
|
|
3.9
|
|
|
|
|
|
|
3.4
|
|
|
|
|
|
|
3.6
|
Less: Share-based compensation expense
|
|
|
|
|
1.2
|
|
|
|
|
|
|
1.0
|
|
|
|
|
|
|
1.1
|
Adjusted cost of revenue (excluding payment to repair centers and
share-based compensation expense) (non-GAAP)
|
|
|
|
$
|
120.1
|
|
|
|
|
|
$
|
120.0
|
|
|
|
|
|
$
|
124.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of gross profit (GAAP to non-GAAP)
|
|
|
|
Three months ended
|
|
|
|
|
Dec 31,
2018
|
|
|
|
|
|
Dec 31,
2017
|
|
|
|
|
|
Sep 30,
2018
|
|
|
|
|
(Amounts in millions)
|
Gross profit (GAAP)
|
|
|
|
$
|
74.5
|
|
|
|
|
|
$
|
64.1
|
|
|
|
|
|
$
|
70.1
|
Add: Share-based compensation expense
|
|
|
|
|
1.2
|
|
|
|
|
|
|
1.0
|
|
|
|
|
|
|
1.1
|
Adjusted gross profit (excluding share-based compensation expense)
(non-GAAP)
|
|
|
|
$
|
75.8
|
|
|
|
|
|
$
|
65.1
|
|
|
|
|
|
$
|
71.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
Dec 31,
2018
|
|
|
|
|
|
Dec 31,
2017
|
|
|
|
|
|
Sep 30,
2018
|
Gross profit as a percentage of revenue (GAAP)
|
|
|
|
|
37.3
|
%
|
|
|
|
|
|
|
34.0
|
%
|
|
|
|
|
|
|
35.2
|
%
|
Adjusted gross profit (excluding share-based compensation expense)
as a percentage of revenue less repair payments (non-GAAP)
|
|
|
|
|
38.7
|
%
|
|
|
|
|
|
|
35.2
|
%
|
|
|
|
|
|
|
36.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of selling and marketing expenses (GAAP to non-GAAP)
|
|
|
|
Three months ended
|
|
|
|
|
Dec 31,
2018
|
|
|
|
|
|
Dec 31,
2017
|
|
|
|
|
|
Sep 30,
2018
|
|
|
|
|
(Amounts in millions)
|
Selling and marketing expenses (GAAP)
|
|
|
|
$
|
10.9
|
|
|
|
|
|
$
|
10.6
|
|
|
|
|
|
$
|
11.3
|
Less: Share-based compensation expense
|
|
|
|
|
1.3
|
|
|
|
|
|
|
0.7
|
|
|
|
|
|
|
0.9
|
Adjusted selling and marketing expenses (excluding share-based
compensation expense) (non-GAAP)
|
|
|
|
$
|
9.6
|
|
|
|
|
|
$
|
9.9
|
|
|
|
|
|
$
|
10.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
Dec 31,
2018
|
|
|
|
|
|
Dec 31,
2017
|
|
|
|
|
|
Sep 30,
2018
|
Selling and marketing expenses as a percentage of revenue (GAAP)
|
|
|
|
|
5.5
|
%
|
|
|
|
|
|
|
5.6
|
%
|
|
|
|
|
|
|
5.7
|
%
|
Adjusted selling and marketing expenses (excluding share-based
compensation expense) as a percentage of revenue less repair
payments (non-GAAP)
|
|
|
|
|
4.9
|
%
|
|
|
|
|
|
|
5.4
|
%
|
|
|
|
|
|
|
5.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of general and administrative expenses (GAAP to
non-GAAP)
|
|
|
|
Three months ended
|
|
|
|
|
Dec 31,
2018
|
|
|
|
|
|
Dec 31,
2017
|
|
|
|
|
|
Sep 30,
2018
|
|
|
|
|
(Amounts in millions)
|
General and administrative expenses (GAAP)
|
|
|
|
$
|
28.2
|
|
|
|
|
|
$
|
28.3
|
|
|
|
|
|
$
|
27.9
|
Less: Share-based compensation expense
|
|
|
|
|
5.2
|
|
|
|
|
|
|
5.6
|
|
|
|
|
|
|
6.1
|
Adjusted general and administrative expenses (excluding share-based
compensation expense) (non-GAAP)
|
|
|
|
$
|
23.0
|
|
|
|
|
|
$
|
22.8
|
|
|
|
|
|
$
|
21.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
Dec 31,
2018
|
|
|
|
|
|
Dec 31,
2017
|
|
|
|
|
|
Sep 30,
2018
|
General and administrative expenses as a percentage of revenue (GAAP)
|
|
|
|
|
14.1
|
%
|
|
|
|
|
|
|
15.0
|
%
|
|
|
|
|
|
|
14.0
|
%
|
Adjusted general and administrative expenses (excluding share-based
compensation expense) as a percentage of revenue less repair
payments (non-GAAP)
|
|
|
|
|
11.7
|
%
|
|
|
|
|
|
|
12.3
|
%
|
|
|
|
|
|
|
11.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating profit / (loss) (GAAP to non-GAAP)
|
|
|
|
Three months ended
|
|
|
|
|
Dec 31,
2018
|
|
|
|
|
|
Dec 31,
2017
|
|
|
|
|
|
Sep 30,
2018
|
|
|
|
|
(Amounts in millions)
|
Operating profit (GAAP)
|
|
|
|
$
|
33.4
|
|
|
|
|
|
$
|
25.7
|
|
|
|
|
|
$
|
28.8
|
Add: Share-based compensation expense
|
|
|
|
|
7.7
|
|
|
|
|
|
|
7.2
|
|
|
|
|
|
|
8.1
|
Add: Amortization of intangible assets
|
|
|
|
|
3.9
|
|
|
|
|
|
|
3.9
|
|
|
|
|
|
|
4.0
|
Adjusted operating profit (excluding share-based compensation
expense and amortization of intangible assets) (non-GAAP)
|
|
|
|
$
|
45.1
|
|
|
|
|
|
$
|
36.8
|
|
|
|
|
|
$
|
41.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
Dec 31,
2018
|
|
|
|
|
|
Dec 31,
2017
|
|
|
|
|
|
Sep 30,
2018
|
Operating profit as a percentage of revenue (GAAP)
|
|
|
|
|
16.7
|
%
|
|
|
|
|
|
|
13.6
|
%
|
|
|
|
|
|
|
14.5
|
%
|
Adjusted operating profit (excluding share-based compensation
expense and amortization of intangible assets) as a percentage of
revenue less repair payments (non-GAAP)
|
|
|
|
|
23.0
|
%
|
|
|
|
|
|
|
19.9
|
%
|
|
|
|
|
|
|
21.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of profit / (loss) (GAAP) to ANI (non-GAAP)
|
|
|
|
Three months ended
|
|
|
|
|
Dec 31, 2018
|
|
|
|
|
|
Dec 31, 2017
|
|
|
|
|
|
Sep 30, 2018
|
|
|
|
|
(Amounts in millions)
|
Profit (GAAP)
|
|
|
|
$
|
28.6
|
|
|
|
|
|
|
$
|
26.3
|
|
|
|
|
|
|
$
|
24.8
|
|
Add: Share-based compensation expense
|
|
|
|
|
7.7
|
|
|
|
|
|
|
|
7.2
|
|
|
|
|
|
|
|
8.1
|
|
Add: Amortization of intangible assets
|
|
|
|
|
3.9
|
|
|
|
|
|
|
|
3.9
|
|
|
|
|
|
|
|
4.0
|
|
Less: Tax impact on share-based compensation expense(1)
|
|
|
|
|
(1.5
|
)
|
|
|
|
|
|
|
(2.0
|
)
|
|
|
|
|
|
|
(2.1
|
)
|
Less: Tax impact on amortization of intangible assets(1)
|
|
|
|
|
(0.8
|
)
|
|
|
|
|
|
|
(1.3
|
)
|
|
|
|
|
|
|
(1.1
|
)
|
Adjusted Net Income (excluding share-based compensation expense and
amortization of intangible assets, including tax effect thereon)
(non-GAAP)
|
|
|
|
$
|
38.0
|
|
|
|
|
|
|
$
|
34.2
|
|
|
|
|
|
|
$
|
33.7
|
|
(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
|
|
|
|
|
Dec 31,
2018
|
|
|
|
|
|
Dec 31,
2017
|
|
|
|
|
|
Sep 30,
2018
|
Profit as a percentage of revenue (GAAP)
|
|
|
|
|
14.3
|
%
|
|
|
|
|
|
|
13.9
|
%
|
|
|
|
|
|
|
12.5
|
%
|
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)
|
|
|
|
|
19.4
|
%
|
|
|
|
|
|
|
18.4
|
%
|
|
|
|
|
|
|
17.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of basic earnings per ADS (GAAP to non-GAAP)
|
|
|
|
Three months ended
|
|
|
|
|
Dec 31,
2018
|
|
|
|
|
|
Dec 31,
2017
|
|
|
|
|
|
Sep 30,
2018
|
Basic earnings per ADS (GAAP)
|
|
|
|
$
|
0.57
|
|
|
|
|
|
|
$
|
0.52
|
|
|
|
|
|
|
$
|
0.50
|
|
Add: Adjustments for share-based compensation expense and
amortization of intangible assets
|
|
|
|
|
0.23
|
|
|
|
|
|
|
|
0.22
|
|
|
|
|
|
|
|
0.23
|
|
Less: Tax impact on share-based compensation expense and
amortization of intangible assets
|
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.06
|
)
|
|
|
|
|
|
|
(0.06
|
)
|
Adjusted basic earnings per ADS (excluding share-based compensation
expenses and amortization of intangible assets, including tax effect
thereon) (non-GAAP)
|
|
|
|
$
|
0.76
|
|
|
|
|
|
|
$
|
0.68
|
|
|
|
|
|
|
$
|
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of diluted earnings per ADS (GAAP to non-GAAP)
|
|
|
|
Three months ended
|
|
|
|
|
Dec 31,
2018
|
|
|
|
|
|
Dec 31,
2017
|
|
|
|
|
|
Sep 30,
2018
|
Diluted earnings per ADS (GAAP)
|
|
|
|
$
|
0.55
|
|
|
|
|
|
|
$
|
0.51
|
|
|
|
|
|
$
|
0.48
|
|
Add: Adjustments for share-based compensation expense and
amortization of intangible assets
|
|
|
|
|
0.23
|
|
|
|
|
|
|
|
0.21
|
|
|
|
|
|
|
0.23
|
|
Less: Tax impact on share-based compensation expense and
amortization of intangible assets
|
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
(0.06
|
)
|
|
|
|
|
|
(0.06
|
)
|
Adjusted diluted earnings per ADS (excluding amortization of
intangible assets and share-based compensation expense, including
tax effect thereon) (non-GAAP)
|
|
|
|
$
|
0.73
|
|
|
|
|
|
|
$
|
0.66
|
|
|
|
|
|
$
|
0.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|

View source version on businesswire.com: https://www.businesswire.com/news/home/20190117005265/en/
Source: WNS (Holdings) Limited
Investors:
David Mackey
Corporate
SVP – Finance & Head of Investor Relations
WNS (Holdings)
Limited
+1 (201) 942-6261
david.mackey@wns.com
Media:
Archana Raghuram
Global
Head – Marketing & Communications and Corporate Business Development
WNS
(Holdings) Limited
+91 (22) 4095 2397
archana.raghuram@wns.com
pr@wns.com