PRESS RELEASE
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WNS Announces Fourth Quarter and Full Year Fiscal 2009 Earnings; Provides Guidance for Fiscal 2010
Quarterly Revenue Increases 14.1%; Revenue Less Repair Payments Increases 27.1% Over the Corresponding Quarter in the Prior Fiscal Year
Annual Revenue Increases 17.3%; Revenue Less Repair Payments Increases 32.9% Over the Prior Fiscal Year
Fiscal Q4 2009
Revenue for the fiscal fourth quarter 2009 of
Net income for the fiscal fourth quarter 2009 was
Adjusted net income was
"WNS finished fiscal year 2009 on a strong note," said Neeraj Bhargava, Group Chief Executive Officer. "We continued to see new client activity and our focus on operations has positively affected our profitability. While the global economy is expected to present challenges in fiscal 2010, we are well-positioned to execute on our plan and increase profitability during the next year."
WNS recorded a basic income per ADS of
Fiscal Year 2009
For the fiscal year 2009, WNS achieved revenues of
Net income for the full year ended
Adjusted net income was
WNS recorded a basic income per ADS of
On
"We have made significant progress in improving our working capital and tightening our capital expenditure, thanks largely to the synergies from our recent acquisitions, which combined with our improved profitability resulted in the strong free cash flow that we have realized this quarter. This will continue to be our area of focus," said Alok Misra, Group Chief Financial Officer.
Financial Highlights: Fiscal Fourth Quarter Ended
- Quarterly revenue of
$132.5 million , up 14.1% from the corresponding quarter last year. - Quarterly revenue less repair payments of
$95.5 million , up 27.1% from the corresponding quarter last year. - Quarterly net income of
$2.4 million compared to$6.1 million from the corresponding quarter last year. - Quarterly adjusted net income (or net income excluding amortization of
intangible assets, share-based compensation, related fringe benefit
taxes and minority interest) of
$13.6 million , up 34.5% from the corresponding quarter last year. - Quarterly basic income per ADS of
$0.06 , compared with$0.14 for the corresponding quarter last year. - Quarterly adjusted diluted net income per ADS (or diluted income per
ADS excluding amortization of intangible assets, share-based
compensation, related fringe benefit taxes and minority interest) of
$0.32 , up from$0.24 for the corresponding quarter last year.
Financial Highlights: Fiscal Full Year Ended
- Annual revenue of
$539.3 million , up 17.3% from the prior fiscal year. - Annual revenue less repair payments of
$386.4 million , up 32.9% from the prior fiscal year. - Annual net income of
$8.1 million compared to$9.5 million from the prior fiscal year. - Annual adjusted net income (or net income excluding amortization of
intangible assets, share-based compensation, related fringe benefit
taxes and minority interest) of
$46.6 million , up 26.0% from the prior fiscal year. - Annual basic income per ADS of
$0.19 , compared with$0.23 for the prior fiscal year. - Annual adjusted diluted net income per ADS (or diluted income per ADS
excluding amortization of intangible assets, share-based compensation,
related fringe benefit taxes and minority interest) of
$1.08 , up from$0.86 for the prior fiscal year.
Reconciliations of non-GAAP financial measures to GAAP operating results are included at the end of this release.
Fiscal 2010 Guidance
WNS is providing the following guidance for the fiscal year ending
- Revenue less repair payments is expected to be between
$385 million and$390 million . This assumes an average USD to GBP exchange rate of 1.40 to 1.45 for the 2010 fiscal year. - Adjusted net income (or net income excluding amortization of
intangible assets, share-based compensation, related fringe benefit
taxes and minority interest) is expected to range between
$50 million and$52 million . This assumes an average INR to USD exchange rate of 49 to 50 for the 2010 fiscal year.
"Although we are facing currency and economic headwinds which impact our top line, we are confident that we will increase our profitability and free cash flows as a result of the actions that we have taken to improve our operating leverage and our continued balance sheet focus," continued Misra.
Conference Call
WNS will host a conference call on
About WNS
About Non-GAAP Financial Measures
For financial statement reporting purposes, the company has two reportable
segments: WNS Global BPO and WNS Auto Claims BPO. In the auto claims segment,
which includes
In order to provide accident-management services, the Company arranges for the repair through a network of repair centers. Repair costs are invoiced to customers. Amounts invoiced to customers for repair costs paid to the automobile repair centers are recognized as revenue. The Company uses revenue less repair payments for "fault" repairs as a primary measure to allocate resources and measure segment performance. Revenue less repair payments is a non-GAAP measure which is calculated as revenue less payments to repair centers. For "Non fault repairs," revenue including repair payments is used as a primary measure. As the Company provides a consolidated suite of accident management services including credit hire and credit repair for its "Non fault" repairs business, the Company believes that measurement of that line of business has to be on a basis that includes repair payments in revenue.
The Company believes that the presentation of this non-GAAP measure provides useful information for investors regarding financial performance. The presentation of this non-GAAP information is not meant to be considered in isolation or as a substitute for the Company's financial results prepared in accordance with US GAAP.
Safe Harbor Statement under the provisions of the United States Private
Securities Litigation Reform Act of 1995
This news release contains forward-looking statements, as defined in the
safe harbor provisions of the US Private Securities Litigation Reform Act of
1995. These forward-looking statements include statements regarding expected
future financial results. These statements involve a number of risks,
uncertainties and other factors that could cause actual results to differ
materially from those that may be projected by these forward looking
statements. These risks and uncertainties include but are not limited to
technological innovation; telecommunications or technology disruptions; future
regulatory actions and conditions in our operating areas; our dependence on a
limited number of clients in a limited number of industries; our ability to
attract and retain clients; our ability to expand our business or effectively
manage growth; our ability to hire and retain enough sufficiently trained
employees to support our operations; negative public reaction in the US or the
UK to offshore outsourcing; regulatory, legislative and judicial developments;
increasing competition in the business process outsourcing industry; political
or economic instability in
CONTACT:
Investors: Media:
Alan Katz Josh Passman
VP -- Investor Relations CJP Communications
WNS (Holdings) Limited +1 212 279 3115 ext. 203
+1 212 599-6960 ext. 241 jpassman@cjpcom.com
ir@wnsgs.com
WNS (HOLDINGS) LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
Three months ended Year ended March 31,
March 31,
2009 2008 2009 2008
Revenue
Third parties $131,772 $115,133 $536,022 $456,401
Related parties 741 988 3,242 3,466
132,513 116,121 539,264 459,867
Cost of revenue 99,887 88,786 410,316 363,322
Gross profit 32,626 27,335 128,948 96,545
Operating expenses
Selling, general and
administrative
expenses 17,119 21,418 75,522 72,699
Amortization of
intangible assets 8,012 663 24,912 2,869
Impairment of goodwill
and intangible assets - - - 15,464
Operating income 7,495 5,254 28,514 5,513
Other income
(expense), net 262 2,221 (5,639) 9,184
Interest (expense)
income, net (4,460) 20 (11,782) (3)
Income before income
taxes 3,297 7,495 11,093 14,694
Provision for income
taxes 958 1,435 3,302 5,194
Income before minority
interest 2,339 6,060 7,792 9,500
Minority interest 107 - 287 -
Net income $2,446 $6,060 $8,079 $9,500
Basic income per share $0.06 $0.14 $0.19 $0.23
Diluted income per
share $0.06 $0.14 $0.19 $0.22
Reconciliation of revenue less repair payments
(non-GAAP) to revenue (GAAP) Amount in
thousands
Three months ended Year ended March 31,
March 31,
2009 2008 2009 2008
Revenue less repair payments
(Non-GAAP) $95,543 $75,153 $386,373 $290,717
Add: Payments to repair centers 36,970 40,968 152,891 169,150
Revenue (GAAP) $132,513 $116,121 $539,264 $459,867
Reconciliation of cost of revenue (non-GAAP to GAAP)
Amount in
thousands
Three months ended Year ended March 31,
March 31,
2009 2008 2009 2008
Cost of revenue (Non-GAAP) $62,917 $47,818 $257,425 $194,172
Add: Payments to repair centers 36,970 40,968 152,891 169,150
Cost of revenue (GAAP) $99,887 $88,786 $410,316 $363,322
Reconciliation of selling, general and administrative expense
(non-GAAP to GAAP) Amount in
Thousands
Three months ended Year ended March 31,
March 31,
2009 2008 2009 2008
Selling, general and
administrative expenses
(excluding share-based
compensation expense
and FBT(1)) (Non-GAAP) $14,862 $18,632 $65,301 $65,997
Add: Share-based
compensation expense 2,426 1,323 9,775 4,380
Add: FBT(1) (169) 1,463 446 2,322
Selling, general and
administrative expenses
(GAAP) $17,119 $21,418 $75,522 $72,699
Reconciliation of operating income (non-GAAP to GAAP)
Amount in
thousands
Three months ended Year ended March 31,
March 31,
2009 2008 2009 2008
Operating income
(excluding amortization of
intangible assets,
share-based compensation
expense, impairment of
goodwill and intangible
assets, and FBT(1))
(Non-GAAP) $18,731 $9,287 $67,294 $32,985
Less: Amortization of
intangible assets 8,012 663 24,912 2,869
Less: Share-based compensation
expense 3,393 1,907 13,422 6,816
Less: Impairment of goodwill
and intangible assets - - - 15,464
Less: FBT(1) (169) 1,463 446 2,322
Operating income (GAAP) $7,495 $5,254 $28,514 $5,513
Reconciliation of net income (non-GAAP to GAAP)
Amount in
Thousands
Three months ended Year ended March 31,
March 31,
2009 2008 2009 2008
Net income (excluding
amortization of
intangible assets,
share-based compensation
expense, impairment of
goodwill and intangible
assets, FBT(1) and
minority interest)
(Non-GAAP) $13,575 $10,093 $46,572 $36,972
Less: Amortization of
intangible assets 8,012 663 24,912 2,869
Less: Share-based
compensation expense 3,393 1,907 13,422 6,816
Less: Impairment of
goodwill and intangible
assets - - - 15,464
Less: FBT(1) (169) 1,463 446 2,322
Add: Minority interest 107 - 287 -
Net income (GAAP) $2,446 $6,060 $8,079 $9,500
Reconciliation of basic income per ADS (non-GAAP to GAAP)
Three months ended Year ended March 31,
March 31,
2009 2008 2009 2008
Basic income per ADS
(excluding amortization and
impairment of goodwill and
intangible assets,
share-based compensation
expense, FBT(1) and minority
interest) (Non-GAAP) $0.32 $0.24 $1.10 $0.88
Less: Adjustments for
amortization and impairment
of goodwill and intangible
assets, share-based
compensation expense,
FBT(1) and minority interest 0.26 0.10 0.91 0.65
Basic income per ADS (GAAP) $0.06 $0.14 $0.19 $0.23
Reconciliation of diluted income per ADS (non-GAAP to GAAP)
Three months ended Year ended March 31,
March 31,
2009 2008 2009 2008
Diluted income per ADS
(excluding amortization and
impairment of goodwill and
intangible assets,
share-based compensation
expense, FBT(1) and minority
interest) (Non-GAAP) $0.32 $0.24 $1.08 $0.86
Less: Adjustments for
amortization and impairment
of goodwill and intangible
assets, share-based
compensation expense, FBT(1)
and minority interest 0.26 0.10 0.89 0.64
Diluted income per ADS (GAAP) $0.06 $0.14 $0.19 $0.22
(1) FBT means the fringe benefit taxes on options and restricted share
units granted to employees under the WNS 2002 Stock Incentive Plan
and the WNS 2006 Incentive Award Plan (as applicable) payable by WNS
to the government of India .
WNS (HOLDINGS) LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
As of As of
March 31, March 31,
2009 2008
ASSETS
Current assets
Cash and cash equivalents $38,931 $102,698
Bank deposits and marketable
securities 8,925 8,074
Accounts receivable, net of
allowance of $1,935 and $1,784 ,
respectively 61,257 47,302
Accounts receivable - related
parties 64 586
Funds held for clients 5,379 6,473
Employee receivables 745 1,179
Prepaid expenses 2,082 3,776
Prepaid income taxes 5,768 2,776
Deferred tax assets 1,743 618
Other current assets 38,647 8,596
Total current assets $163,541 $182,078
Goodwill 81,679 87,470
Intangible assets, net 217,372 9,393
Property and equipment, net 55,992 50,840
Other assets - non current 11,449 1,278
Deposits 6,309 7,391
Deferred tax assets - non current 15,584 8,055
TOTAL ASSETS $551,926 $346,505
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $30,879 $15,562
Accounts payable - related parties 42 6
Long term debt - current 45,000 -
Short term line of credit 4,331 -
Accrued employee costs 23,754 26,848
Deferred revenue - current 5,583 7,790
Income taxes payable 3,995 1,879
Deferred tax liabilities - current - 211
Accrual for earn out payment - 33,699
Other current liabilities $54,126 25,806
Total current liabilities $167,710 $111,801
Long term debt - non current 155,000 -
Deferred revenue - non current 3,561 1,549
Deferred rent 1,967 2,627
Accrued pension liability 2,570 1,544
Deferred tax liabilities - non
current 9,946 1,834
Liability on outstanding derivative
contracts - non current 23,163 -
Commitments and contingencies
TOTAL LIABILITIES $363,917 $119,355
Minority interest 13 -
Shareholders' equity:
Ordinary shares, $0.16 (10 pence)
par value, Authorized: 50,000,000
shares;
Issued and outstanding: 42,607,403
and 42,363,100 shares, respectively 6,667 6,622
Additional paid-in-capital 184,122 167,459
Ordinary shares subscribed: Nil and
1,666 shares, respectively - 10
Retained earnings 46,917 38,839
Accumulated other comprehensive
(loss) income (49,710) 14,220
Total shareholders' equity 187,996 227,150
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $551,926 $346,505
WNS (HOLDINGS) LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Year ended March 31,
2009 2008
Cash flows from operating activities
Net cash provided by operating
activities $62,897 $41,051
Cash flows from investing activities
Acquisitions, net of cash received (290,994) (36,121)
Purchase of facilities and property cost (22,693) (28,134)
Proceeds from sale of assets, net 342 178
Transfer of delivery centre to AVIVA - 1,570
Purchase of marketable securities and
deposits (41,983) (48,181)
Marketable securities and deposits sold 39,710 52,150
Net cash used in investing activities (315,618) (58,538)
Cash flows from financing activities
Proceeds from exercise of stock options 988 4,204
Excess tax benefits from share-based
compensation 2,226 1,613
Proceeds from issuance of long term
debt, net 198,803 -
Initial public offering expenses - (150)
Principal repayments under capital lease (183) -
Proceeds from short term line of credit 16,416 -
Repayment of short term line of credit (19,310) -
Net cash provided by financing activities 198,940 5,667
Effect of exchange rate changes on
cash and cash equivalent (9,986) 2,178
Net change in cash and cash equivalents (63,767) (9,642)
Cash and cash equivalents at
beginning of period 102,698 112,340
Cash and cash equivalents at end of period $38,931 $102,698
SOURCE
Investors:
(Holdings) Limited
ir@wnsgs.com
Media:
Passman
jpassman@cjpcom.com
Web Site: http://www.wns.com
(WNS)