iGATE Corporation (Nasdaq:IGTE), the first Business Outcomes driven
integrated Technology and Operations (iTOPS) solutions provider,
operating under the brand name iGATE Patni, today announced its
financial results for the first quarter ended March 31, 2012.
First Quarter Highlights
- Accepts delisting offer of Patni Computer Systems Limited
("Patni") enabling Patni to proceed with delisting from the
Indian stock exchanges at Rs. 520/- per share and marking the
completion of a complex corporate restructuring within one year of
Patni's acquisition
- Net Income for first quarter 2012 increased by
34.6% to $ 24.1 million from $ 17.9 million in the
first quarter 2011
- Revenues for first quarter 2012 increased by
247.4% to $ 263.3 million from $75.8 million in
the first quarter 2011
- Gross margin was 40.2% for the first quarter 2012 compared to
40.9% in the corresponding quarter last year
- Diluted earnings per share of $0.22 GAAP; $0.38 non-GAAP
- iGATE Patni added seven new customers during the quarter
- The company ended the first quarter 2012 with 27,100
employees
Phaneesh Murthy, CEO, iGATE Patni said, "The
long tail rationalization of our customers that we undertook
yielded us higher profits but dipped revenues and the delays in
project kick-offs resulted in lesser revenue growth. We expect our
revenue growth to be back on track over the next couple of quarters
creating a back loaded year."
Sujit Sircar, CFO, iGATE Patni said, "We are
delighted that we managed to do a very complex capital
restructuring within a year of completing the Patni acquisition.
The successful delisting of Patni will be an important step towards
our vision of 'one company' and will set us up well for a possible
downstream merger while also reducing costs of Compliance and
Governance."
Key Highlights of the quarter
On April 10, 2012, iGATE announced the results of the delisting
offer of Patni from the Indian stock exchanges. Announcing the
process as a success, iGATE accepted the discovered price
of Rs.520 per equity share, determined through a reverse book
building process using the electronic facility of the Bombay Stock
Exchange, in accordance with the Security Exchange Board of India
regulations. The public shareholders holding equity shares of Patni
were invited to submit bids via an offer that opened on March 28,
2012 and closed on March 30, 2012.
- Inauguration of iGATE Patni managed Rio Tinto
Innovation Center
On March 27, 2012, the iGATE Patni-managed Rio Tinto Innovation
Center was inaugurated in Pune, India as part of the innovation
partnership initiative between the two companies. With a joint
investment of approximately $3 million dollars, this facility can
staff 300 people and will focus exclusively on creating next
generation technologies that contribute to global growth and
development of Rio Tinto's 'Mine of the Future™'
program. As an outcomes-based engagement, iGATE Patni will provide
innovation-led engineering research and development services that
will enable Rio Tinto to deliver greater operational efficiency, as
well as improved health, safety and environmental performance in
the mining industry.
First Quarter Operating Results
Results for the first quarter on a GAAP and non-GAAP basis are
provided in the table below.
|
|
Three months ended
3/31/12 |
Three months ended
3/31/11 |
Year over year
change |
Net revenue ($Millions) |
263.3 |
75.8 |
247% |
Operating
margin($Millions) |
48.1 |
6.9 |
597% |
GAAP net income
($Millions) |
24.1 |
17.9 |
35% |
GAAP diluted EPS ($) |
0.22 |
0.22 |
0% |
Adjusted EBITDA
($Millions) |
68.3 |
20.6 |
232% |
Non-GAAP net income
($Millions) |
29.0 |
15.7 |
85% |
Non-GAAP diluted EPS
($) |
0.38 |
0.23 |
65% |
New customers and key project wins in the
quarter
- One of the leading U.S.-based pharmaceutical retailers chose
iGATE Patni to facilitate its prescription and medication process
for North American senior citizens. iGATE Patni's data warehousing
services will enable easy identification and enrollment of senior
citizens into the pharmacies' systems during the point of sale and
help pharmacists reduce the cycle time for servicing these senior
citizens.
- A leading Middle East-based telecommunications company chose
iGATE Patni to develop business intelligence that will increase
efficiency in managing customer information. The company will use
the analytics information derived from iGATE Patni's services and
customize its offerings in the Middle East region.
- A North America-based Fortune 1000 Insurance company chose
iGATE Patni to develop an enterprise-wide 'mobility center of
excellence'. As part of the engagement, iGATE Patni will build
mobile applications that provide more avenues for the insurance
company to increase its customer service levels. Its policy holders
will be able to access services via their smart phones and tablets
while the company will have increased access to customer
information and expedite various customer transaction
processes.
- A leading India-based energy and environmental engineering
company chose iGATE Patni for the development of an energy
efficient solar collector. iGATE Patni's product engineering
services will enable this collector to harness the sun's energy in
an effective manner. The collector, integrated with a newly
designed triple effect chiller, will be used to develop
first-of-its-kind solar air-conditioning systems.
- A leading U.S.-based aluminum company engaged iGATE Patni to
refine the implementation and usage of its enterprise systems. As
part of the initiative, iGATE Patni will develop training
methodologies on SAP and increase the adaptability of the
enterprise systems, including order processing, shipment and
finance.
- A North America-based banking and financial services firm
engaged iGATE Patni to build a suite of mobile applications for its
corporate systems group. The iGATE Patni-developed applications
will enable the Bank's customers to transact via smart phones and
other hand held devices. The Bank hopes that these applications
facilitate up-selling and cross-selling of its range of products
and increase customer satisfaction levels.
Conference Call and Webcast
iGATE will host a telephone conference call on Friday, April 13,
2012 at 8:00 am Eastern time to discuss the results of its first
quarter ended March 31, 2012. The live discussion may be accessed
by dialing 877-660-6853 (toll free) or 201-612-7415 (toll) and
entering account number 293 and conference number 390561. The
telephonic replay will be available until April 20, 2012. A replay
will also be available shortly after the live call via webcast on
the iGATE Investor Relations website at
http://ir.igate.com/investors/.
About iGATE Patni
'iGATE Patni' is the common brand name of two organizations —
iGATE and Patni. With iGATE Corporation having acquired a majority
stake in Patni Computer Systems Limited, the two companies, under
the common brand iGATE Patni, provide full-spectrum consulting,
technology and business process outsourcing, and product
engineering services on a Business Outcomes-based model. Armed with
over three decades of IT Services experience and powered by the
iTOPS (Integrated Technology and Operations) platform, iGATE
Patni's multi-location global organization with a talent pool of
over 27,000 employees, consistently delivers effective solutions to
over 360 Fortune 1000 clients spanning across verticals
like: banking and financial services; insurance and
healthcare; life sciences; manufacturing, retail, distribution and
logistics; media, entertainment leisure and travel; communication,
energy and utilities; public sector; and independent software
vendors. For further information visit www.igatepatni.com.
iGATE Corporation is listed on NASDAQ (IGTE), and Patni Computer
Systems Limited is listed on the Bombay Stock Exchange (532517),
the National Stock Exchange of India (PATNI) and the New York Stock
Exchange (PTI).
The iGATE Patni brand logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5150
Use of non-GAAP Financial Measures
This press release contains non-GAAP financial measures as
defined by the Securities and Exchange Commission. These non-GAAP
measures are not in accordance with, or an alternative for measures
prepared in accordance with, generally accepted accounting
principles in the United States and may be different from non-GAAP
measures used by other companies. In addition, these non-GAAP
measures are not based on any comprehensive set of accounting rules
or principles. Reconciliations of these non-GAAP measures to
their comparable GAAP measures are included in the attached
financial tables.
iGATE believes that non-GAAP measures have limitations in that
they do not reflect all of the amounts associated with iGATE's
results of operations as determined in accordance with GAAP and
that these measures should only be used to evaluate iGATE's results
of operations in conjunction with the corresponding GAAP
measures. These non-GAAP measures should be considered
supplemental in nature and should not be considered in isolation or
be construed as being more important than comparable GAAP
measures.
iGATE believes that providing Adjusted EBITDA and non-GAAP net
income and non-GAAP diluted earnings per share in addition to the
related GAAP measures provides investors with greater transparency
to the information used by iGATE's management in its financial and
operational decision-making. These non-GAAP measures are also used
by management in connection with iGATE's performance compensation
programs.
More specifically, the non-GAAP financial measures contained
herein exclude the following items:
- Amortization of intangible assets: Intangible assets comprise
value of customer relationships from the recent Patni acquisition
and the previous delisting of iGATE's Indian subsidiary. iGATE
incurs charges relating to the amortization of these intangibles.
These charges are included in iGATE's GAAP presentation of earnings
from operations, operating margin, net income and diluted earnings
per share. iGATE excludes these charges for purposes of calculating
these non-GAAP measures.
- Stock-based compensation: Although stock-based compensation is
an important aspect of the compensation of iGATE's employees and
executives, determining the fair value of the stock-based
instruments involves a high degree of judgment and estimation and
the expense recorded may not reflect the actual value realized upon
the future exercise or termination of the related stock-based
awards. Furthermore, unlike cash compensation, the value of
stock-based compensation is determined using a complex formula that
incorporates factors, such as market volatility, that are beyond
our control. Management believes it is useful to exclude
stock-based compensation in order to better understand the
long-term performance of our core business.
- Acquisition expenses: iGATE incurs costs related to its
acquisitions, which are inconsistent in amount and frequency and
are significantly impacted by the timing and nature of iGATE's
acquisitions. iGATE believes that eliminating these expenses for
purposes of calculating these non-GAAP measures facilitates a more
meaningful evaluation of iGATE's current operating performance and
comparisons to its past operating performance.
- Foreign Exchange gain: The Company entered into forward foreign
exchange contracts to mitigate the risk of changes in foreign
exchange rates on payments related to the acquisition of Patni. We
also recognized favorable foreign currency gain on re-measurement
of escrow account balance maintained for facilitating payments
related to the Patni acquisition. iGATE believes that eliminating
the non-capitalized items for purposes of calculating these
non-GAAP measures facilitates a more meaningful evaluation of
iGATE's current performance and comparisons to its past
performance. In March 2012, the Company entered into a
forward foreign exchange contract to mitigate the risk of changes
in foreign exchange rates on payments related to the delisting of
Patni. iGATE believes that eliminating the non-capitalized items
for purposes of calculating these non-GAAP measures facilitates a
more meaningful evaluation of iGATE's current performance and
comparisons to its past performance.
- Severance Cost: As a result of the acquisition of Patni, iGATE
incurred severance costs in connection with the termination of the
services of some of Patni's employees.
- Delisting expenses: iGATE is voluntarily delisting the equity
shares of its majority owned subsidiary, Patni from the National
Stock Exchange of India Limited and the Bombay Stock Exchange
Limited and the American Depository Shares from the New York Stock
Exchange. Delisting is an infrequent activity and expenses incurred
in connection therein are inconsistent in amount and are
significantly impacted by the timing and nature of the delisting.
iGATE believes that eliminating these expenses for purposes of
calculating these non-GAAP measures facilitates a more meaningful
evaluation of iGATE's current operating performance and comparisons
to its past operating performance.
From time to time in the future, there may be other items that
iGATE may exclude in presenting its financial results.
Forward-Looking Statements
Statements contained in this press release regarding the
benefits of the Patni acquisition, the business outlook, the demand
for the products and services, and all other statements in this
release other than recitation of historical facts are
forward-looking statements. Words such as "expect", "potential",
"believes", "anticipates", "plans", "intends" and similar
expressions are intended to identify such forward-looking
statements. Forward-looking statements in the press release
include, without limitation, forecasts of market growth, future
revenues, future expectations concerning growth of business, cost
competitiveness and expansion of global reach following the
acquisition, and other matters that involve known and unknown
risks, uncertainties and other factors that may cause results,
levels of activity, performance or achievements to differ
materially from results expressed or implied by this press release.
Such risk factors include, among others: difficulties encountered
in integrating business; whether certain market segments grow as
anticipated; the competitive environment in the information
technology services industry and competitive responses to our
acquisition of Patni; and whether the companies can successfully
provide services/products and the degree to which these gain market
acceptance. Furthermore, in connection with the Patni
acquisition, the Company has borrowed significant amounts,
including through the issuance of high yield notes, and will have
to use a significant portion of its cash flows to service such
indebtedness, as a result of which the Company might not have
sufficient funds to operate its businesses in the manner it intends
or has operated in the past. Additional risks relating to the
Company are set forth in the Company's Annual Report on Form 10-K
for the fiscal year ended December 31, 2011, as well as the
Company's other reports filed with the Securities and Exchange
Commission and risks related to the business of Patni as set forth
in Patni's Annual Report in Form 20-F for the fiscal year ended
December 31, 2011. Actual results may differ materially from
those contained in the forward-looking statements in this press
release. Any forward-looking statements are based on
information currently available to the Company and it assumes no
obligation to update these statements as circumstances
change. This document does not constitute an offer to purchase
or to sell securities in any jurisdiction.
iGATE
CORPORATION |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
(Amounts in thousands, except
per share data) |
|
|
|
|
March 31, |
December 31, |
|
2012 |
2011 |
|
(unaudited) |
(audited) |
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 80,734 |
$ 75,440 |
Short-term investments |
394,944 |
354,528 |
Accounts receivable, net |
142,904 |
172,711 |
Unbilled revenues |
96,065 |
45,223 |
Prepaid expenses and other current
assets |
17,873 |
18,752 |
Foreign exchange derivative
contracts |
3,050 |
277 |
Prepaid income taxes |
11,172 |
8,341 |
Deferred tax assets |
23,983 |
20,574 |
Receivable from Mastech Holdings,
Inc. |
75 |
187 |
Total current assets |
770,800 |
696,033 |
|
|
|
Deposits and other assets |
36,597 |
32,102 |
Prepaid income taxes |
20,769 |
18,481 |
Property and equipment, net |
177,010 |
175,672 |
Leasehold land |
94,046 |
90,339 |
Deferred tax assets |
27,062 |
30,456 |
Goodwill |
533,027 |
511,060 |
Intangible assets, net |
164,549 |
160,706 |
|
|
|
Total assets |
$ 1,823,860 |
$ 1,714,849 |
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
Accounts payable |
$ 9,261 |
$ 7,857 |
Accrued payroll and related costs |
55,663 |
71,913 |
Accrued income taxes |
1,813 |
3,993 |
Line of credit |
57,000 |
57,000 |
Other accrued liabilities |
97,199 |
77,988 |
Foreign exchange derivative
contracts |
11,765 |
12,471 |
Deferred revenue |
17,221 |
22,412 |
Total current liabilities |
249,922 |
253,634 |
|
|
|
Other long-term liabilities |
3,358 |
4,610 |
Senior notes |
770,000 |
770,000 |
Term Loan |
5,500 |
-- |
Foreign exchange derivative
contracts |
525 |
6,739 |
Accrued income taxes |
24,846 |
17,672 |
Deferred tax liabilities |
61,122 |
58,992 |
Total liabilities |
1,115,273 |
1,111,647 |
|
|
|
Series B Preferred stock, without par
value |
356,116 |
349,023 |
|
|
|
Shareholders' equity: |
|
|
|
|
|
Common Stock, par value $0.01 per
share |
585 |
577 |
Additional paid-in capital |
207,990 |
201,281 |
Retained earnings |
121,468 |
104,493 |
Common stock in treasury, at cost |
(14,714) |
(14,714) |
Accumulated other comprehensive loss |
(154,792) |
(214,641) |
Total iGATE Corporation shareholders'
equity |
160,537 |
76,996 |
Non controlling interest |
191,934 |
177,183 |
Total equity |
352,471 |
254,179 |
Total liabilities, preferred stock and
shareholders' equity |
$ 1,823,860 |
$ 1,714,849 |
|
|
iGATE
CORPORATION |
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME |
(Amounts in
thousands) |
(unaudited) |
|
|
Three Months
ended, |
|
March
31, |
|
2012 |
2011 |
|
|
|
Revenues |
$ 263,265 |
$ 75,798 |
|
|
|
Cost of revenues (exclusive of Depreciation
and amortization) |
157,429 |
44,795 |
Gross margin |
105,836 |
31,003 |
|
|
|
Selling, general and administrative |
42,421 |
21,747 |
Depreciation and amortization |
15,285 |
2,307 |
Income from operations |
48,130 |
6,949 |
Other income (loss), net |
(8,723) |
19,853 |
Income before income taxes |
39,407 |
26,802 |
Income tax expense |
10,863 |
8,863 |
Net income before noncontrolling
interest |
28,544 |
17,939 |
Noncontrolling interest |
4,476 |
-- |
Net income attributable to iGATE
Corporation |
24,068 |
17,939 |
Accretion to Preferred Stock |
93 |
15 |
Preferred dividend |
6,999 |
2,723 |
Net income attributable to iGATE common
shareholders |
$ 16,976 |
$ 15,201 |
|
|
iGATE
CORPORATION |
Earnings Per
Share |
(Amounts in thousands,
except per share data) |
(unaudited) |
|
|
|
|
|
|
Three Months
Ended March 31, |
PARTICULARS |
|
2012 |
|
2011 |
|
|
|
|
|
Net income attributable to iGATE common
shareholders |
|
$ 16,976 |
|
$ 15,201 |
Add: Dividends on Series B Preferred
Stock |
|
6,999 |
|
2,723 |
|
|
23,975 |
|
$ 17,924 |
Less: Dividends paid on |
|
|
|
|
Common Stock |
$ -- |
|
$ -- |
|
Unvested restricted stock |
-- |
|
-- |
|
Series B Preferred Stock |
6,999 |
6,999 |
2,723 |
2,723 |
Undistributed
Income |
|
$ 16,976 |
|
$ 15,201 |
|
|
|
|
|
Basic and Diluted allocation of
Undistributed Income |
|
|
|
|
Common stock |
|
$ 12,918 |
|
$ 12,771 |
Unvested restricted stock |
|
43 |
|
59 |
Series B Preferred Stock |
|
4,015 |
|
2,371 |
|
|
$ 16,976 |
|
$ 15,201 |
|
|
|
|
|
Shares outstanding: |
|
|
|
|
Common stock |
|
56,924 |
|
56,443 |
Unvested restricted stock |
|
188 |
|
262 |
Series B Preferred Stock |
|
17,692 |
|
10,479 |
|
|
74,804 |
|
67,184 |
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
Common stock |
|
56,813 |
|
56,311 |
Unvested restricted stock |
|
193 |
|
262 |
Participating preferred stock |
|
17,692 |
|
10,479 |
|
|
74,698 |
|
67,052 |
|
|
|
|
|
Weighted average common stock
outstanding |
|
56,813 |
|
56,311 |
Dilutive effect of stock
options and restricted shares outstanding |
1,671 |
|
1,481 |
Dilutive weighted average shares
outstanding |
|
58,484 |
|
57,792 |
|
|
|
|
|
|
|
|
|
|
Distributed earnings per
share: |
|
|
|
|
Common stock |
|
-- |
|
$ -- |
Unvested restricted stock |
|
-- |
|
$ -- |
Participating preferred stock |
|
0.40 |
|
$ 0.26 |
|
|
|
|
|
Undistributed earnings per share: |
|
|
|
|
Common stock |
|
0.23 |
|
$ 0.23 |
Unvested restricted stock |
|
0.23 |
|
$ 0.23 |
Participating preferred stock |
|
0.23 |
|
$ 0.23 |
|
|
|
|
|
Basic earnings per share from
operations |
|
|
|
|
Common Stock |
|
0.23 |
|
$ 0.23 |
Unvested restricted stock |
|
0.23 |
|
$ 0.23 |
Participating preferred stock |
|
0.63 |
|
$ 0.49 |
|
|
|
|
|
Diluted earnings per share from
operations |
|
0.22 |
|
$ 0.22 |
|
|
|
|
|
The number of outstanding
participative convertible preferred stock for which the earnings
per share exceeded the earnings per share of common stock
aggregated to 17.7 million,10.5 million shares for the three months
ended March 31,2012 and 2011 respectively.These shares were
excluded from the computation of diluted earnings per share as they
were anti-dilutive. |
|
|
iGATE
CORPORATION |
Reconciliation of
Selected GAAP measures to Non-GAAP measures |
(Amounts in thousands, except
per share data) |
(unaudited) |
|
|
Three Months
ended, |
|
March
31, |
|
2012 |
2011 |
|
|
|
GAAP Net income |
$ 24,068 |
$ 17,939 |
|
|
|
Adjustments |
|
|
|
|
|
Amortization of Intangible assets, net of
taxes |
2,174 |
197 |
Stock Based Compensation, net of taxes |
1,965 |
861 |
Acquisition expenses, net of taxes |
-- |
9,039 |
Delisting expenses, net of taxes |
1,478 |
-- |
Forex gain on acquisition hedging and
remeasurement, net of taxes |
(685) |
(12,306) |
Non-GAAP Net income |
$ 29,000 |
$ 15,730 |
|
|
|
Basic earnings per share from
operations |
|
|
GAAP |
$ 0.23 |
$ 0.23 |
Non-GAAP |
$ 0.39 |
$ 0.23 |
|
|
|
Diluted earnings per share from
operations |
|
|
GAAP |
$ 0.22 |
$ 0.22 |
Non-GAAP |
$ 0.38 |
$ 0.23 |
|
|
|
Weighted average shares outstanding,
Basic |
74,698* |
67,052* |
Weighted average dilutive common
equivalent shares outstanding |
76,176* |
68,271* |
|
|
|
*Includes assumed conversion of
17.7 million ,10.5 million shares of Series B Preferred Stock as of
March 31,2012 and 2011 respectively. |
|
|
|
|
iGATE
CORPORATION |
Reconciliation of Net
income, net of tax, to Adjusted EBITDA |
(Amounts in thousands) |
(unaudited) |
|
|
Three Months
ended, |
|
March
31, |
|
2012 |
2011 |
|
|
|
Net income attributable to iGATE
Corporation |
$ 24,068 |
17,939 |
|
|
|
Adjustments |
|
|
|
|
|
Depreciation and amortization |
15,285 |
2,307 |
Interest expenses |
19,123 |
89 |
Income tax expense |
10,863 |
8,863 |
Noncontrolling interest |
4,476 |
-- |
Other income, net |
(7,564) |
(1,097) |
Foreign exchange (gain)/loss |
(2,836) |
(18,845) |
Stock Based Compensation |
2,812 |
1,508 |
Acquisition expenses |
-- |
9,792 |
Delisting expenses |
2,115 |
-- |
Adjusted EBITDA (a non-GAAP measure) |
$ 68,342 |
$ 20,556 |
|
|
|
The Company presents the non-GAAP
financial measures EBITDA and adjusted EBITDA because management
uses these measures to monitor and evaluate the performance of the
business and believe the presentation of these measures will
enhance the investors' ability to analyze trends in the business
and evaluate the Company underlying performance relative to other
companies in the industry. |
|
Non-GAAP Disclosure of Adjusted
EBITDA |
|
|
|
|
|
|
|
We present Adjusted EBITDA as a
supplemental measure of our performance. We define Adjusted EBITDA
as net income attributable to iGATE Corporation plus (i)
depreciation and amortization, (ii) interest expense, (iii) income
tax expense, minus (iv) other income, net plus (v) foreign exchange
loss, (v) stock based compensation (vi) acquisition expenses (vii)
severance expenses and (viii) delisting expenses. We
eliminated the impact of the above as we do not consider them as
indicative of our ongoing operating performance. These adjustments
are itemized below. You are encouraged to evaluate these
adjustments and the reasons we consider them appropriate for
supplemental analysis. In evaluating Adjusted EBITDA, you should be
aware that in the future we may incur expenses that are the same as
or similar to some of the adjustments in this presentation. Our
presentation of Adjusted EBITDA should not be construed as an
inference that our future results will be unaffected by unusual or
non-recurring items. |
|
We present Adjusted EBITDA
because we believe it assists investors and analysts in comparing
our performance across reporting periods on a consistent basis by
excluding items that we do not believe are indicative of our core
operating performance. In addition, we use Adjusted EBITDA: [(i) as
a factor in evaluating management's performance when determining
incentive compensation, (ii) to evaluate the effectiveness of our
business strategies and (iii) because our credit agreement and our
indenture use measures similar to Adjusted EBITDA to measure our
compliance with certain covenants. |
|
Adjusted EBITDA has limitations
as an analytical tool. Some of these limitations are: |
-- Adjusted EBITDA does
not reflect our cash expenditures, or future requirements, for
capital expenditures or contractual commitments; |
-- Adjusted EBITDA does not
reflect changes in, or cash requirements for, our working capital
needs; |
-- Adjusted EBITDA does not
reflect the significant interest expense, or the cash requirements
necessary to service interest or principal payments, on our debts;
although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized will often have to be
replaced in the future, and adjusted EBITDA does not reflect any
cash requirements for such replacements; non-cash compensation is
and will remain a key element of our overall long-term incentive
compensation package, although we exclude it as an expense when
evaluating our ongoing operating performance for a particular
period; Adjusted EBITDA does not reflect the impact of certain cash
charges resulting from matters we consider not to be indicative of
our ongoing operations; and other companies in our industry may
calculate adjusted EBITDA differently than we do, limiting its
usefulness as a comparative measure. |
Because of these limitations,
adjusted EBITDA should not be considered in isolation or as a
substitute for performance measures calculated in accordance with
GAAP. We compensate for these limitations by relying primarily on
our GAAP results and using Adjusted EBITDA only
supplementally. |
CONTACT: Media Contact
Prabhanjan Deshpande "PD"
+91 80 4104 5006
PD@igatepatni.com
Investor Contact
Araceli Roiz
+1 510 896 3007
araceli.roiz@igatepatni.com
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