PRESS RELEASE
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WNS Announces Fourth Quarter and Full Year Fiscal 2010 Earnings Updates Guidance for Fiscal 2011
NEW YORK, NY and MUMBAI, INDIA, May 21, 2010 (MARKETWIRE via COMTEX) --WNS (Holdings) Limited (NYSE: WNS), a leading provider of global business process outsourcing (BPO) services, today announced results for the fiscal fourth quarter and year ended March 31, 2010, and updated its guidance on revenue less repair payments and adjusted net income (ANI) (or net income attributable to WNS shareholders excluding amortization of intangible assets, share-based compensation and gain/loss attributable to non-controlling interest) for fiscal 2011, due to the increased volatility in exchange rates.
Fiscal Q4 2010
Revenue for the fiscal fourth quarter 2010 of $157.6 million represented an increase of 24.6% over the corresponding quarter in the prior fiscal year, while revenue less repair payments at $96.7 million increased 1.8% over the corresponding quarter in the prior fiscal year. The growth in revenue less repair payments largely resulted from the impact of a stronger British Pound (GBP), and increased transaction volumes from new clients. This growth was offset by transaction volume declines in the travel and insurance industries and the second year pricing terms for the Aviva Global Services (AGS) contract.
Net income for the fiscal fourth quarter 2010 was $1.0 million compared to $2.5 million during the corresponding quarter in the prior fiscal year. The net income in the fiscal fourth quarter was impacted primarily by the stronger Indian Rupee (INR), transaction volume declines in the travel and insurance industries, one-time severance costs of $2.1 million associated with changes in senior management, and lower revenues resulting from the second year pricing terms for the AGS contract. This decline was partially offset by tighter cost management and improved scale benefits.
Adjusted net income was $13.3 million, a decline of 2.6% over the corresponding quarter in the prior year. The primary drivers of this decline were similar to those highlighted in the prior paragraph.
"As I discussed on our April 22 call, we are very focused on our strategic initiatives and expanding our client relationships," said Keshav Murugesh, Group Chief Executive Officer. "We have an active sales pipeline and are developing a more client-centric approach to existing work. Along with opportunities we see in developing new service offerings, we will be well-positioned to achieve long-term growth in our top and bottom lines."
WNS recorded a diluted income per ADS of $0.02 for the fiscal fourth quarter 2010. Adjusted diluted net income per ADS (or diluted income attributable to WNS shareholders per ADS excluding amortization of intangible assets, share-based compensation and loss attributable to non-controlling interest) was $0.30 for the quarter.
Fiscal Year 2010
For the fiscal year 2010, WNS achieved revenue of $582.5 million, representing an increase of 11.8% over the prior fiscal year. Revenue less repair payments of $390.5 million increased 1.4% over the prior year. The growth in revenue less repair payments was largely a result of increased revenue from new and existing clients. This growth was offset by the decline in the GBP/USD exchange rate.
Net income for the full year ended March 31, 2010 was $3.7 million compared to $8.2 million in the prior fiscal year. The net income decrease was a result of the full year impact from interest and amortization charges from the AGS acquisition, foreign exchange losses, lower revenue resulting from the second year pricing terms of the AGS contract, one-time severance costs of $2.1 million associated with changes in senior management and lower transaction volumes in the travel and insurance spaces. These were partially offset by improved synergies in operations from our acquisitions, tighter cost management, improved scale benefits and lower interest expense during the second half of the year resulting from WNS's debt payments.
However, adjusted net income was $50.7 million, an increase of 8.6% over fiscal 2009.
Net income in fiscal 2010 compared with fiscal 2009 included higher amortization and share-based compensation charges. Net income and adjusted net income results also reflected $1 million in one-time costs associated with the unwinding of interest rate swaps from a $15 million prepayment WNS made on its term loan in January 2010.
WNS recorded a diluted income per ADS of $0.08 for the fiscal year 2010. Adjusted diluted net income per ADS was $1.15 for the year.
"We expect to have lower interest expense and aim to improve our operating metrics in fiscal 2011. As such, we should continue to generate a strong amount of cash and maintain our adjusted operating margins," said Alok Misra, Group Chief Financial Officer.
Financial Highlights: Fiscal Fourth Quarter Ended March 31, 2010
- Quarterly revenue of $157.6 million, up 24.6% from the corresponding quarter last year.
- Quarterly revenue less repair payments of $96.7 million, up 1.8% from the corresponding quarter last year.
- Quarterly net income of $1.0 million compared to $2.5 million from the corresponding quarter last year.
- Quarterly adjusted net income (or net income attributable to WNS shareholders excluding amortization of intangible assets, share-based compensation, related fringe benefit taxes and loss attributable to non-controlling interest) of $13.3 million, compared to $13.7 million from the corresponding quarter last year.
- Quarterly diluted income per ADS of $0.02, compared with $0.06 for the corresponding quarter last year.
- Quarterly adjusted diluted net income per ADS (or diluted income attributable to WNS shareholders per ADS excluding amortization of intangible assets, share-based compensation, related fringe benefit taxes and loss attributable to non-controlling interest) of $0.30, compared to $0.32 for the corresponding quarter last year.
Financial Highlights: Fiscal Year Ended March 31, 2010
- Annual revenue of $582.5 million, up 11.8% from the prior fiscal year.
- Annual revenue less repair payments of $390.5 million, up 1.4% from the prior fiscal year.
- Annual net income of $3.7 million compared to $8.2 million from the prior fiscal year.
- Annual adjusted net income (or net income attributable to WNS shareholders excluding amortization of intangible assets, share-based compensation, related fringe benefit taxes and loss attributable to non-controlling interest) of $50.7 million, up 8.6% from the prior fiscal year.
- Annual diluted income per ADS of $0.08, compared with $0.19 for the prior fiscal year.
- Annual adjusted diluted net income per ADS (or diluted income attributable to WNS shareholders per ADS excluding amortization of intangible assets, share-based compensation, related fringe benefit taxes and loss attributable to non-controlling interest) of $1.15, up from $1.08 for the prior fiscal year.
Reconciliations of non-GAAP financial measures to GAAP operating results as also the effects of the financial statement adjustments on WNS's previously reported consolidated financial statements are included at the end of this release.
Restatement of Audited Financial Statements
On April 22, 2010, WNS announced that it had, in consultation with its Audit Committee, concluded that corrections to its prior accounting treatment for referral fees earned from garages and, revenues and costs on completed but unbilled repairs, in its Auto Claims BPO segment (the AutoClaims business) are required.
The financial information included in this press release reflects these accounting changes. WNS will restate its audited financial statements for the years ended March 31, 2009 and 2008 (as well as selected financial information for the years ended March 31, 2007 and 2006 and the quarterly information for fiscal 2010 and 2009) to reflect these accounting changes and intends to include the restated financial information in its Annual Report on Form 20-F for fiscal 2010. All prior period financial information contained in this press release gives effect to the restatement of WNS consolidated financials.
Based on its evaluation, management has concluded that as of March 31, 2010, WNS's disclosure control and procedures and internal control over financial reporting were not effective due to a material weakness identified in the design and operating effectiveness of the Company's controls over the recognition and accrual of repair payments to garages and the related fees in its Auto Claims BPO segment. In order to remediate the identified material weakness, management intends to augment its existing US GAAP expertise and strengthen its monitoring controls and documentation for the revenue recognition process in the Auto Claims BPO segment.
Fiscal 2011 Guidance
WNS is updating its guidance for the fiscal year ending March 31, 2011 provided on April 22, 2010 due to the increased volatility in exchange rates:
- Revenue less repair payments is now expected to be between $353 million and $378 million. This assumes an average GBP to USD exchange rate of 1.45 for the 2011 fiscal year.
- Adjusted net income (or net income attributable to WNS shareholders excluding amortization of intangible assets, share-based compensation and gain/loss attributable to non-controlling interest) is expected to range between $43 million and $46 million. This assumes an average USD to INR exchange rate of 46.5 for the 2011 fiscal year.
"When we had provided our initial guidance for Fiscal 2011 on 22 April, the prevailing GBP to USD exchange rate was 1.53 whereas it has dropped to 1.45 in the last few days. Our updated guidance reflects this depreciation of the British Pound on the revenue while the impact on the ANI is partly offset by the depreciation in the Indian Rupee," continued Misra. "While we see these headwinds, the BPO market is ripe with opportunity and WNS is in a solid position to take advantage of the growth opportunities within the space."
Conference Call WNS will host a conference call on May 21, 2010 at 8:00 am (EDT) to discuss the company's quarterly results.
To participate in the call, please use the following details: + 1-866-543-6407; international dial-in +1-617-213-8898; participant passcode 82880611. A replay will be available for one week following the call at + 1-888-286-8010; international dial-in +1-617-801-6888; passcode 63770434, 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 outsourcing company. Deep industry and business process knowledge, a partnership approach, comprehensive service offering and a proven track record enables WNS to deliver business value to some of the leading companies in the world. WNS is passionate about building a market-leading company valued by our clients, employees, business partners, investors and communities. For more information, visit www.wns.com.
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 WNS Assistance and Chang Limited, WNS provides claims-handling and accident-management services, in which it arranges for automobile repairs through a network of third-party repair centers. In its accident-management services, WNS acts as the principal in dealings with the third-party repair centers and clients.
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 in the segmental information provides useful information for investors regarding the segment's 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
These forward-looking statements are based on our current expectations, assumptions, estimates and projections about our Company and our industry. The forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate," "believe," "estimate," "expect," "intend," "will," "project," "seek," "should" and similar expressions. Those statements include, among other things, the discussions of our business strategy, industry growth potential, expansion opportunities and expectations concerning our future financial performance and growth potential, including our fiscal 2011 guidance and future profitability; our ability to generate free cash; and our future operations. We caution you that reliance on any forward-looking statement involves risks and uncertainties, and that although we believe that the assumptions on which our forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and, as a result, the forward-looking statements based on those assumptions could be materially incorrect. These factors include but are not limited to worldwide economic and business conditions; political or economic instability in the jurisdictions where we have operations; regulatory, legislative and judicial developments; our ability to attract and retain clients 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 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; increasing competition in the BPO industry; our ability to successfully grow our revenue, expand our service offerings and market share and achieve accretive benefits from our acquisition of Aviva Global Services Singapore Pte. Ltd. (which we have renamed as WNS Customer Solutions (Singapore) Private Limited following our acquisition), or Aviva Global, and our master services agreement with Aviva Global Services (Management Services) Private Limited; our ability to successfully consummate strategic acquisitions; the implications of the accounting changes and restatement of our financial statements discussed in this press release for WNS's reporting with the U.S. Securities and Exchange Commission (SEC) (including the timing of that reporting), and any adverse developments in existing legal proceedings or the initiation of new legal proceedings; and volatility of WNS's ADS price. These and other factors are more fully discussed in our annual report on Form 20-F for the fiscal year ended March 31, 2009 filed with the SEC which is available at www.sec.gov. In light of these and other uncertainties, you should not conclude that we will necessarily achieve any plans, objectives or projected financial results referred to in any of the forward-looking statements. Except as required by law, we do not undertake to release revisions of any of these 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.
WNS HOLDINGS LIMITED CONSOLIDATED STATEMENTS OF INCOME (Unaudited, amounts in thousands, except share and per share data) Three months ended March 31, ------------------------------------------------------ 2010 2009 ------------ ---------------------------------------- As previously As restated Adjustments reported ---------------------------------------- Revenue $ 157,552 $ 126,433 $ 6,080 $ 132,513 Cost of revenue (a) 123,480 93,678 6,209 99,887 ------------------------------------------------------ Gross profit 34,072 32,755 (129) 32,626 Operating expenses: Selling, general and administrative expenses (a) 22,783 17,119 -- 17,119 Amortization of intangible assets 8,053 8,012 -- 8,012 ------------------------------------------------------ Operating income 3,236 7,624 (129) 7,495 Other expenses (income), net (777) (262) -- (262) Interest expenses 2,757 4,460 -- 4,460 ------------------------------------------------------ Income before income taxes 1,256 3,426 (129) 3,297 Provision for income taxes 410 994 (36) 958 ------------------------------------------------------ Consolidated net income 846 2,432 (93) 2,339 Less: Net loss attributable to noncontrolling interest (179) (107) -- (107) ------------------------------------------------------ Net income attributable to WNS (Holdings) Limited shareholders $ 1,025 $ 2,539 $ (93) $ 2,446 ====================================================== Earnings per share of ordinary share Basic $ 0.02 $ 0.06 $ 0.00 $ 0.06 Diluted $ 0.02 $ 0.06 $ 0.00 $ 0.06 Basic weighted average ordinary shares outstanding 43,504,631 42,591,278 -- 42,591,278 Diluted weighted average ordinary shares outstanding 44,615,440 42,793,875 -- 42,793,875 Note: (a) Includes the following share- based compensation amounts: Cost of revenue $ 963 $ 967 $ -- $ 967 Selling, general and administrative expenses $ 3,446 $ 2,426 $ -- $ 2,426 Year ended March 31, ------------------------------------------------------ 2010 2009 ----------- ----------------------------------------- As previously As restated Adjustments reported ----------------------------------------- Revenue $ 582,461 $ 520,901 $ 18,363 $ 539,264 Cost of revenue (a) 439,248 391,808 18,508 410,316 ------------------------------------------------------ Gross profit 143,213 129,093 (145) 128,948 Operating expenses: Selling, general and administrative expenses (a) 86,231 75,522 -- 75,522 Amortization of intangible assets 32,422 24,912 -- 24,912 ------------------------------------------------------ Operating income 24,560 28,659 (145) 28,514 Other expenses (income), net 7,052 5,639 -- 5,639 Interest expenses 13,823 11,782 -- 11,782 ------------------------------------------------------ Income before income taxes 3,685 11,238 (145) 11,093 Provision for income taxes 998 3,343 (41) 3,302 ------------------------------------------------------ Consolidated net income 2,687 7,895 (104) 7,791 Less: Net loss attributable to noncontrolling interest (1,023) (287) -- (287) ------------------------------------------------------ Net income attributable to WNS (Holdings) Limited shareholders $ 3,710 $ 8,182 $ (104) $ 8,078 ====================================================== Earnings per share of ordinary share Basic $ 0.09 $ 0.19 $ 0.00 $ 0.19 Diluted $ 0.08 $ 0.19 $ 0.00 $ 0.19 Basic weighted average ordinary shares outstanding 43,093,316 42,520,404 -- 42,520,404 Diluted weighted average ordinary shares outstanding 44,174,128 43,108,599 -- 43,108,599 Note: (a) Includes the following share- based compensation amounts: Cost of revenue $ 3,730 $ 3,647 $ -- $ 3,647 Selling, general and administrative expenses $ 11,397 $ 9,775 $ -- $ 9,775 Reconciliation of revenue less repair payments (non-GAAP) to revenue (GAAP) Amounts in thousands Three months ended March 31, -------------------------------------------------- 2010 2009 --------- --------------------------------------- As previously As restated Adjustments reported --------------------------------------- Revenue less repair payments (Non-GAAP) $ 96,731 $ 95,010 $ 533 $ 95,543 Add: Payments to repair centers 60,821 31,423 5,547 36,970 -------------------------------------------------- Revenue (GAAP) $ 157,552 $ 126,433 $ 6,080 $ 132,513 ================================================== Year ended March 31, -------------------------------------------------- 2010 2009 --------- --------------------------------------- As As previously restated Adjustments reported --------------------------------------- Revenue less repair payments (Non-GAAP) $ 390,538 $ 385,027 $ 1,346 $ 386,373 Add: Payments to repair centers 191,923 135,874 17,017 152,891 -------------------------------------------------- Revenue (GAAP) $ 582,461 $ 520,901 $ 18,363 $ 539,264 ================================================== Reconciliation of cost of revenue (non-GAAP to GAAP) Amounts in thousands Three months ended March 31, -------------------------------------------------- 2010 2009 --------- ---------------------------------------- As previously As restated Adjustments reported ---------------------------------------- Cost of revenue (excluding share-based compensation expense and payment to repair centers) (Non-GAAP) $ 61,696 $ 61,288 $ 662 $ 61,950 Add: Payments to repair centers 60,821 31,423 5,547 36,970 Add: Share-based compensation expense 963 967 -- 967 -------------------------------------------------- Cost of revenue (GAAP) $ 123,480 $ 93,678 $ 6,209 $ 99,887 ================================================== Year ended March 31, -------------------------------------------------- 2010 2009 --------- -------------------------------------- As As previously restated Adjustments reported -------------------------------------- Cost of revenue (excluding share-based compensation expense and payment to repair centers) (Non-GAAP) $ 243,595 $ 252,287 $ 1,491 $ 253,778 Add: Payments to repair centers 191,923 135,874 17,017 152,891 Add: Share-based compensation expense 3,730 3,647 -- 3,647 -------------------------------------------------- Cost of revenue (GAAP) $ 439,248 $ 391,808 $ 18,508 $ 410,316 ================================================== Reconciliation of selling, general and administrative expense (non-GAAP to GAAP) Amounts in thousands Three months ended March 31, -------------------------------------------------- 2010 2009 -------- ---------------------------------------- As previously As restated Adjustments reported ---------------------------------------- Selling, general and administrative expenses (excluding share-based compensation expense and related FBT(1)) (Non-GAAP) $ 19,337 $ 14,862 $ -- $ 14,862 Add: Share-based compensation expense 3,446 2,426 -- 2,426 Add: Related FBT(1) -- (169) -- (169) -------------------------------------------------- Selling, general and administrative expenses (GAAP) $ 22,783 $ 17,119 $ -- $ 17,119 ================================================== Year ended March 31, -------------------------------------------------- 2010 2009 --------- -------------------------------------- As As previously restated Adjustments reported -------------------------------------- Selling, general and administrative expenses (excluding share-based compensation expense and related FBT(1)) (Non-GAAP) $ 74,375 $ 65,301 $ -- $ 65,301 Add: Share-based compensation expense 11,397 9,775 -- 9,775 Add: Related FBT(1) 459 446 -- 446 -------------------------------------------------- Selling, general and administrative expenses (GAAP) $ 86,231 $ 75,522 $ -- $ 75,522 ================================================== Reconciliation of operating income (non-GAAP to GAAP) Amounts in thousands Three months ended March 31, -------------------------------------------------- 2010 2009 -------- ---------------------------------------- As previously As restated Adjustments reported ---------------------------------------- Adjusted operating income (excluding amortization of intangible assets, share-based compensation, and related FBT(1)) (Non- GAAP) $ 15,698 $ 18,860 $ (129) $ 18,731 Less: Amortization of intangible assets 8,053 8,012 -- 8,012 Less: Share-based compensation expense 4,409 3,393 -- 3,393 Less: Related FBT(1) -- (169) -- (169) -------------------------------------------------- Operating income (GAAP) $ 3,236 $ 7,624 $ (129) $ 7,495 ================================================== Year ended March 31, -------------------------------------------------- 2010 2009 --------- -------------------------------------- As As previously restated Adjustments reported -------------------------------------- Adjusted operating income (excluding amortization of intangible assets, share-based compensation, and related FBT(1)) (Non-GAAP) $ 72,568 $ 67,439 $ (145) $ 67,294 Less: Amortization of intangible assets 32,422 24,912 -- 24,912 Less: Share-based compensation expense 15,127 13,422 -- 13,422 Less: Related FBT(1) 459 446 -- 446 -------------------------------------------------- Operating income (GAAP) $ 24,560 $ 28,659 $ (145) $ 28,514 ================================================== 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. In August 2009, the Government of India passed the Finance (No.2) Bill, 2009 which withdrew the levy of FBT. Reconciliation of net income attributable to WNS shareholders (non-GAAP to GAAP) Amounts in thousands Three months ended March 31, -------------------------------------------------- 2010 2009 -------- ---------------------------------------- As previously As restated Adjustments reported ---------------------------------------- Adjusted net income (excluding amortization of intangible assets, share-based compensation expense, related FBT(1) and loss attributable to noncontrolling interest) (Non-GAAP) $ 13,308 $ 13,668 $ (93) $ 13,575 Less: Amortization of intangible assets 8,053 8,012 -- 8,012 Less: Share-based compensation expense 4,409 3,393 -- 3,393 Less: Related FBT(1) -- (169) -- (169) Add: Loss attributable to noncontrolling interest 179 107 -- 107 -------------------------------------------------- Net income attributable to WNS (Holdings) Limited shareholders (GAAP) $ 1,025 $ 2,539 $ (93) $ 2,446 ================================================== Year ended March 31, -------------------------------------------------- 2010 2009 --------- -------------------------------------- As As previously restated Adjustments reported -------------------------------------- Adjusted net income (excluding amortization of intangible assets, share-based compensation expense, related FBT(1) and loss attributable to noncontrolling interest) (Non-GAAP) $ 50,695 $ 46,675 $ (104) $ 46,571 Less: Amortization of intangible assets 32,422 24,912 -- 24,912 Less: Share-based compensation expense 15,127 13,422 -- 13,422 Less: Related FBT(1) 459 446 -- 446 Add: Loss attributable to noncontrolling interest 1,023 287 -- 287 --------------------------------------------------- Net income attributable to WNS (Holdings) Limited shareholders (GAAP) $ 3,710 $ 8,182 $ (104) $ 8,078 =================================================== 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. In August 2009, the Government of India passed the Finance (No.2) Bill, 2009 which withdrew the levy of FBT. Reconciliation of basic income per ADS (non-GAAP to GAAP) Amounts in thousands Three months ended March 31, -------------------------------------------------- 2010 2009 -------- ---------------------------------------- As previously As restated Adjustments reported ---------------------------------------- Basic adjusted net income per ADS (excluding amortization of intangible assets, share-based compensation expense, related FBT(1) and loss attributable to noncontrolling interest) (Non-GAAP) $ 0.31 $ 0.32 $ 0.00 $ 0.32 Less: Adjustments for amortization of intangible assets, share-based compensation expense, related FBT(1) and loss attributable to noncontrolling interest 0.29 0.26 -- 0.26 -------------------------------------------------- Basic income per ADS (GAAP) $ 0.02 $ 0.06 $ 0.00 $ 0.06 ================================================== Year ended March 31, -------------------------------------------------- 2010 2009 --------- -------------------------------------- As As previously restated Adjustments reported -------------------------------------- Basic adjusted net income per ADS (excluding amortization of intangible assets, share-based compensation expense, related FBT(1) and loss attributable to noncontrolling interest) (Non-GAAP) $ 1.18 $ 1.10 0.00 $ 1.10 Less: Adjustments for amortization of intangible assets, share-based compensation expense, related FBT(1) and loss attributable to noncontrolling interest 1.09 0.91 -- 0.91 -------------------------------------------------- Basic income per ADS (GAAP) $ 0.09 $ 0.19 0.00 $ 0.19 ================================================== Reconciliation of diluted income per ADS (non-GAAP to GAAP) Amounts in thousands Three months ended March 31, -------------------------------------------------- 2010 2009 -------- ---------------------------------------- As previously As restated Adjustments reported ---------------------------------------- Diluted adjusted net income per ADS (excluding amortization of intangible assets, share-based compensation expense, related FBT(1) and loss attributable to noncontrolling interest) (Non-GAAP) $ 0.30 $ 0.32 $ 0.00 $ 0.32 Less: Adjustments for amortization of intangible assets, share-based compensation expense, related FBT(1) and loss attributable to noncontrolling interest 0.28 0.26 -- 0.26 --------------------------------------------------- Diluted income per ADS (GAAP) $ 0.02 $ 0.06 $ 0.00 $ 0.06 =================================================== Year ended March 31, -------------------------------------------------- 2010 2009 --------- -------------------------------------- As As previously restated Adjustments reported -------------------------------------- Diluted adjusted net income per ADS (excluding amortization of intangible assets, share-based compensation expense, related FBT(1) and loss attributable to noncontrolling interest) (Non-GAAP) $ 1.15 $ 1.08 0.00 $ 1.08 Less: Adjustments for amortization of intangible assets, share-based compensation expense, related FBT(1) and loss attributable to noncontrolling interest 1.07 0.89 -- 0.89 -------------------------------------------------- Diluted income per ADS (GAAP) $ 0.08 $ 0.19 0.00 $ 0.19 ================================================== 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. In August 2009, the Government of India passed the Finance (No.2) Bill, 2009 which withdrew the levy of FBT. WNS HOLDINGS LIMITED CONSOLIDATED BALANCE SHEET (Unaudited, amounts in thousands, except share and per share data) As at March 31, ---------------------------------------------------- 2010 2009 -------- ------------------------------------------- As previously As restated Adjustments reported ---------------------------------------------------- ASSETS Current assets: Cash and cash equivalents $ 32,311 $ 38,931 $ -- $ 38,931 Bank deposits and marketable securities 45 8,925 -- 8,925 Accounts receivable, net 84,974 71,183 (9,926) 61,257 Accounts receivable -- related parties 739 64 -- 64 Funds held for clients 11,372 5,379 -- 5,379 Employee receivables 1,526 745 -- 745 Prepaid expenses 2,101 2,082 -- 2,082 Prepaid income taxes 5,602 5,768 -- 5,768 Deferred tax assets 1,959 1,718 25 1,743 Other current assets 36,308 38,647 -- 38,647 ---------------------------------------------------- Total current assets 176,937 173,442 (9,901) 163,541 Goodwill 90,662 81,679 -- 81,679 Intangible assets, net 188,079 217,372 -- 217,372 Property and equipment, net 51,700 55,992 -- 55,992 Other assets 10,242 11,449 -- 11,449 Deposits 7,086 6,309 -- 6,309 Deferred tax assets 25,184 15,584 -- 15,584 ---------------------------------------------------- ---------------------------------------------------- TOTAL ASSETS $ 549,890 $ 561,827 $ (9,901) $ 551,926 ==================================================== LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 27,900 $ 30,879 $ -- $ 30,879 Accounts payable -- related parties -- 42 -- 42 Current portion of long term debt 40,000 45,000 -- 45,000 Short term line of credit -- 4,331 -- 4,331 Accrued employee cost 30,977 23,754 -- 23,754 Deferred revenue 4,891 5,583 -- 5,583 Deferred tax liabilities -- 27 (27) -- Income taxes payable 2,550 3,995 -- 3,995 Other current liabilities 67,585 63,870 (9,744) 54,126 ------------------------------------------------- Total current liabilities 173,903 177,481 (9,771) 167,710 Long term debt 95,000 155,000 -- 155,000 Deferred revenue 3,515 3,561 -- 3,561 Other liabilities 3,727 1,967 -- 1,967 Accrued pension liability 3,921 2,570 -- 2,570 Deferred tax liabilities 8,343 9,946 -- 9,946 Derivative contracts 7,600 23,163 -- 23,163 ---------------------------------------------------- TOTAL LIABILITIES 296,009 373,688 (9,771) 363,917 WNS HOLDINGS LIMITED CONSOLIDATED BALANCE SHEET (Unaudited, amounts in thousands, except share and per share data) Commitments and contingencies Equity: WNS (Holdings) Limited shareholders' equity: Ordinary shares, $0.16 (10 pence) par value, authorized: 50,000,000 shares; Issued and outstanding: 43,743,953 and 42,607,403 shares, respectively 6,848 6,667 -- 6,667 Additional paid-in-capital 203,531 184,122 -- 184,122 Retained earnings 50,797 47,087 (170) 46,917 Accumulated other comprehensive loss (7,573) (49,750) 40 (49,710) ---------------------------------------------- WNS (Holdings) Limited shareholders' equity 253,603 188,126 (130) 187,996 Noncontrolling interest 278 13 -- 13 ---------------------------------------------- Total equity 253,881 188,139 (130) 188,009 ---------------------------------------------- ---------------------------------------------- TOTAL LIABILITIES AND EQUITY $ 549,890 $ 561,827 $ (9,901) $ 551,926 ============================================== WNS (HOLDINGS) LIMITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited, amounts in thousands) Year ended March 31, ---------------------------------------------------- 2010 2009 ------------ --------------------------------------- As As previously restated Adjustments reported --------------------------------------- Cash flows from operating activities Net cash provided by operating activities $ 54,275 $ 62,879 $ 18 $ 62,897 Cash flows from investing activities Acquisitions, net of cash received (1,461) (290,994) -- (290,994) Facility and property cost (13,257) (22,693) -- (22,693) Proceeds from sale of assets, net 660 342 -- 342 Marketable securities and deposits sold (purchased), net 9,548 (2,273) -- (2,273) --------------------------------------------------- Net cash used in investing activities (4,510) (315,618) -- (315,618) --------------------------------------------------- Cash flows from financing activities Proceeds from exercise of stock options 3,933 988 -- 988 Excess tax benefits from share-based compensation 1,825 2,226 -- 2,226 Proceeds from issue of shares by subsidiary to non controlling interest 1,348 300 -- 300 Repayment of long term debt (65,000) -- -- -- Payment of debt issuance cost (87) (1,197) -- (1,197) Proceeds from long term debt -- 200,000 -- 200,000 Repayment of short term borrowings, net (4,128) (2,894) -- (2,894) Principal payments under capital leases (57) (183) -- (183) --------------------------------------------------- Net cash (used in) provided by financing activities (62,166) 199,240 -- 199,240 --------------------------------------------------- Effect of exchange rate changes on cash and cash equivalents 5,781 (10,268) (18) (10,286) Net change in cash and cash equivalents (6,620) (63,767) -- (63,767) Cash and cash equivalents at beginning of year 38,931 102,698 -- 102,698 --------------------------------------------------- Cash and cash equivalents at end of year $ 32,311 $ 38,931 $ -- $ 38,931 ===================================================
CONTACT:
Investors:
Alan Katz
VP -- Investor Relations
WNS (Holdings) Limited
+1 212 599-6960 ext. 241
Email Contact
Media:
Deborah Kops
Chief Marketing Officer
WNS (Holdings) Limited
+ 1 703 321-6526 Email Contact
SOURCE: WNS (Holdings) Limited