WNS (Holdings) Limited (WNS) (NYSE: WNS), a leading provider of
global Business Process Management (BPM) services, today announced
results for the fiscal 2020 fourth quarter and full year ended
March 31, 2020.
Highlights – Fiscal 2020 Fourth
Quarter:
GAAP
Financials
- Revenue of $248.3 million, up 18.0% from $210.5 million in
Q4 of last year and up 3.8% from $239.2 million last
quarter
- Profit of $29.5 million, compared to $29.7 million in Q4 of
last year and $30.9 million last quarter
- Diluted earnings per ADS of $0.57, compared to $0.57 in Q4
of last year and $0.60 last quarter
Non-GAAP
Financial Measures*
- Revenue less repair payments of $235.8 million, up 14.1%
from $206.6 million in Q4 of last year and up 3.3% from $228.2
million last quarter
- Adjusted Net Income (ANI) of $42.4 million, compared to
$37.8 million in Q4 of last year and $40.9 million last
quarter
- Adjusted diluted earnings per ADS of $0.82, compared to
$0.73 in Q4 of last year and $0.80 last quarter
Other
Metrics
- Added 11 new clients in the quarter, expanded 16 existing
relationships
- Days sales outstanding (DSO) at 31 days
- Global headcount of 44,292 as of March 31, 2020
Highlights – Fiscal 2020 Full
Year:
GAAP
Financials
- Revenue of $928.3 million, up 14.7% from $809.1 million in
fiscal 2019
- Profit of $116.8 million, compared to $105.4 million in
fiscal 2019
- Diluted earnings per ADS of $2.24, compared to $2.02 in
fiscal 2019
Non-GAAP
Financial Measures*
- Revenue less repair payments of $896.2 million, up 12.9%
from $794.0 million in fiscal 2019
- Adjusted Net Income (ANI) of $161.4 million, compared to
$140.4 million in fiscal 2019
- Adjusted diluted earnings per ADS of $3.10, compared to
$2.69 in fiscal 2019
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 fourth quarter was $248.3 million, representing
an 18.0% increase versus Q4 of last year and a 3.8% increase from
the previous quarter. Revenue less repair payments* in the fourth
quarter was $235.8 million, an increase of 14.1% year-over-year and
3.3% sequentially. Excluding exchange rate impacts, constant
currency revenue less repair payments* in the fiscal fourth quarter
grew 14.8% versus Q4 of last year and 3.8% sequentially. Both
year-over-year and quarter-over-quarter, fiscal Q4 revenue
improvement was broad-based across key verticals, services, and
geographies. This favorability was partially offset by impacts from
the COVID-19 pandemic discussed below which reduced Q4 revenue by
$5.5 million, and by currency movements net of hedging.
Profit in the fiscal fourth quarter was $29.5 million, as
compared to $29.7 million in Q4 of last year and $30.9 million in
the previous quarter. In Q4, the company recorded a non-recurring
impairment charge of $4.1 million for the remaining goodwill
balance of the WNS AutoClaims business. The company believes this
impairment charge was necessary given changes in the demand
environment for AutoClaims services. Year-over-year, profit
favorability was driven by revenue growth, hedging gains net of
currency movements, improved seat utilization, and a lower
effective tax rate. These benefits were partially offset by the
impact of the COVID-19 pandemic, annual wage increases, goodwill
impairment, reduced productivity, higher share-based compensation
expense, and the adoption of IFRS 16 lease accounting.
Sequentially, Q4 profit decreased as a result of the impacts from
the COVID-19 pandemic and goodwill impairment. These headwinds more
than offset favorability from revenue growth, hedging gains net of
currency movements, a lower effective tax rate, and higher interest
income. The COVID-19 pandemic impact on Q4 and full year profit was
$5.4 million.
Adjusted net income (ANI)* in Q4 was $42.4 million, up $4.5
million as compared to Q4 of last year and up $1.4 million from the
previous quarter. Explanations for the ANI* movements on a
year-over-year and sequential basis are the same as described for
GAAP profit above with the exception of goodwill impairment,
share-based compensation, and associated tax impacts, which are
excluded from ANI*.
From a balance sheet perspective, WNS ended Q4 with $302.7
million in cash and investments and $33.4 million of debt. In the
fourth quarter, the company generated $68.6 million in cash from
operations, incurred $4.6 million in capital expenditures,
including $1.7 million for the purchase of desktops and laptops
related to COVID-19 “work from home” delivery, and made scheduled
debt payments of $14.2 million. Fourth quarter days sales
outstanding were 31 days, as compared to 30 days reported in Q4 of
last year and 30 days in the previous quarter.
“For the full fiscal year 2020, WNS grew revenue less repair
payments* by 13.8% on a constant currency* basis, delivered an
adjusted operating margin of 22.7%, expanded adjusted diluted
earnings* per ADS by 15.5% to $3.10, and increased our net cash*
position by $94.8 million,” said Keshav Murugesh, WNS’s Chief
Executive Officer. “While we closed the year with solid fourth
quarter and full year performance, we enter fiscal 2021 in a
challenging, uncertain, and rapidly changing environment. In this
difficult time, WNS is focused on ensuring the health and safety of
our more than 44,000 global employees and on servicing the needs of
our clients. While we understand that our financial performance in
fiscal 2021 will be impacted by the COVID-19 pandemic, our goal is
to manage what is within our control, continue to invest and
innovate, and remain focused on the long-term BPM opportunity. WNS
firmly believes that when this pandemic is behind us, we will
return to a healthy environment for BPM services.”
COVID-19
The COVID-19 pandemic is having a significant impact on the
global economy, our client’s businesses, and on WNS’s operations,
financials, and visibility. Revenue is currently being pressured by
declining client volumes, delays in new business ramps, and
regional lockdowns which impact service delivery. In addition, we
are also receiving client requests for price reductions, discounts,
and extended payment terms. WNS is actively working to understand
our client’s changing requirements, adapt delivery to a “work from
home” model, ensure data security, prioritize critical processes,
adjust service levels, and manage costs. The company is now able to
deliver over 80% of our client’s current requirements, with ongoing
improvement expected over the next few months. The adverse impact
of COVID-19 on fiscal Q4 2020 financials was limited to a ramp-down
in the second half of March. As a result, WNS expects a much
greater financial and operational impact on fiscal Q1 2021 and
potentially subsequent quarters. Based on today’s delivery capacity
and client volumes, WNS estimates that Q1 revenue less repair
payments* will decline approximately 15% year-over-year. At this
revenue level, the company would expect low to mid-single digit
adjusted net income margin* for the quarter. These numbers could
significantly change over the next few months as delivery capacity,
client volumes, and pricing discussions evolve. The magnitude of
the impact to Q1 and full year financial performance will be a
function of how long the COVID-19 pandemic lasts on a global basis,
and how long it takes our client’s businesses to stabilize and
recover.
Fiscal 2021 Guidance
“Based on the volatility and lack of visibility stemming from
the COVID-19 pandemic and the associated impacts on WNS’s and our
client’s businesses, the company has temporarily suspended our
annual guidance. WNS will continue to monitor the COVID-19
situation and plans to resume guidance when visibility improves. In
the meantime, we enter the fiscal year in a strong financial
position with $269 million in net cash*, $64 million in unused
lines of credit, and a business model with low capital requirements
and operating cost flexibility,” said Sanjay Puria, WNS’s Chief
Financial Officer.
Conference Call
WNS will host a conference call on April 23, 2020 at 8:00 am
(Eastern) to discuss the company's quarterly results. To access the
call in “listen-only” mode, please join live via the company’s
investor relations website at ir.wns.com. For call participants,
please use the following details: US dial-in +1-888-656-9018;
international dial-in +1-503-343-6030; participant passcode
3396826. A replay will be available for one week following the call
at +1-855-859-2056; international dial-in +1-404-537-3406; passcode
3396826, 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 Business Process
Management (BPM) company. WNS combines deep industry knowledge with
technology, analytics and process expertise to co-create
innovative, digitally led transformational solutions with over 375
clients across various industries. WNS delivers an entire spectrum
of BPM solutions including industry-specific offerings, customer
interaction services, finance and accounting, human resources,
procurement, and research and analytics to re-imagine the digital
future of businesses. As of March 31, 2020, WNS had 44,292
professionals across 61 delivery centers worldwide including
facilities in China, Costa Rica, India, the Philippines, Poland,
Romania, South Africa, Spain, Sri Lanka, Turkey, the 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, express or implied forward-looking statements relating to
our expectations regarding the impact of the COVID-19 pandemic on
our business, our cost structure, 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 2021 first quarter commentary, 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,
including the impact of the COVID-19 pandemic on our business
operations and future growth; 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 collect our receivables from,
or bill our unbilled services to our 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; 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.
WNS (HOLDINGS) LIMITED
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited, amounts in
millions, except share and per share data)
Three months ended
Year ended
Mar 31, 2020
Mar 31,
2019
Dec 31,
2019
Mar 31,
2020
Mar 31,
2019
Revenue
$
248.3
$
210.5
$
239.2
$
928.3
$
809.1
Cost of revenue
158.4
131.1
150.0
583.9
518.2
Gross profit
90.0
79.4
89.2
344.3
290.9
Operating expenses:
Selling and marketing expenses
15.2
11.3
13.0
52.8
44.6
General and administrative expenses
32.4
31.3
33.5
128.6
115.3
Foreign exchange loss / (gain), net
(1.3
)
0.5
(0.2
)
(3.4
)
(4.5
)
Impairment of Goodwill
4.1
-
-
4.1
-
Amortization of intangible assets
3.8
3.9
4.0
15.7
15.8
Operating profit
35.8
32.3
38.9
146.6
119.8
Other income, net
(4.0
)
(4.6
)
(3.5
)
(14.4
)
(14.6
)
Finance expense (1)
4.0
0.7
4.2
17.0
3.2
Profit before income taxes
35.7
36.2
38.2
144.0
131.2
Income tax expense
6.2
6.5
7.3
27.2
25.7
Profit after tax
$
29.5
$
29.7
$
30.9
$
116.8
$
105.4
Earnings per share of ordinary share
Basic
$
0.59
$
0.59
$
0.62
$
2.35
$
2.10
Diluted
$
0.57
$
0.57
$
0.60
$
2.24
$
2.02
Note: (1) On account of adoption of IFRS 16 ‘Leases’
effective April 1, 2019, interest expense on lease liabilities
amounted to $3.6 million, $14.8 million and $3.6 million,
respectively during the three months and twelve months ended March
31, 2020 respectively and December 31, 2019.
WNS (HOLDINGS) LIMITED
CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
(Unaudited, amounts in
millions, except share and per share data)
As at Mar 31, 2020
As at Mar 31, 2019
ASSETS
Current assets:
Cash and cash equivalents
$
96.9
$
85.4
Investments
125.6
67.9
Trade receivables, net
89.8
73.9
Unbilled revenue
58.0
66.8
Funds held for clients
15.8
7.1
Derivative assets
13.2
13.4
Contract assets
7.5
4.2
Prepayments and other current assets
22.0
16.8
Total current assets
428.8
335.4
Non-current assets:
Goodwill
121.3
130.8
Intangible assets
70.1
80.2
Property and equipment
57.0
61.0
Right-of-use assets (1)
159.1
-
Derivative assets
2.1
5.7
Investments
80.1
82.5
Contract assets
28.9
22.0
Deferred tax assets
28.9
23.8
Other non-current assets
36.0
44.2
Total non-current assets
583.5
450.2
TOTAL ASSETS
$
1,012.3
$
785.6
LIABILITIES AND EQUITY
Current liabilities:
Trade payables
$
29.3
$
17.8
Provisions and accrued expenses
29.0
27.6
Derivative liabilities
9.6
2.1
Pension and other employee obligations
76.9
68.1
Current portion of long-term debt
16.7
28.0
Contract liabilities
10.3
5.4
Current taxes payable
3.3
2.6
Lease liabilities (1)
23.4
-
Other liabilities
7.4
10.3
Total current liabilities
205.8
162.0
Non-current liabilities:
Derivative liabilities
3.9
0.3
Pension and other employee obligations
13.0
11.2
Long-term debt
16.7
33.4
Contract liabilities
20.1
6.6
Other non-current liabilities
0.2
9.0
Lease liabilities (1)
155.5
-
Deferred tax liabilities
10.1
10.7
Total non-current liabilities
219.4
71.2
TOTAL LIABILITIES
$
425.2
$
233.2
Shareholders' equity:
Share capital (ordinary shares $0.16 (10
pence) par value, authorized 60,000,000 shares; issued: 49,733,640
shares and 51,153,220 shares; each as at March 31, 2020 and March
31, 2019, respectively)
7.9
8.1
Share premium
187.3
269.5
Retained earnings
586.3
478.1
Other components of equity
(194.4
)
(146.9
)
Total shareholders’ equity including
shares held in treasury
$
587.1
$
608.8
Less: Nil shares as at March 31, 2020 and
1,101,300 shares as at March 31, 2019, held in treasury, at
cost
-
(56.4
)
Total shareholders’ equity
$
587.1
$
552.4
TOTAL LIABILITIES AND EQUITY
$
1,012.3
$
785.6
Note: (1) On adoption of IFRS 16 ‘Leases’ effective April
1, 2019, comparatives as at and for the year ended March 31, 2019
have not been retrospectively adjusted.
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 15,
2019.
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 15, 2019.
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 or discusses (1) adjusted operating margin,
which refers to adjusted operating profit (calculated as operating
profit / (loss) excluding goodwill impairment, share-based expense
and amortization of intangible assets) as a percentage of revenue
less repair payments, (2) ANI, which is calculated as profit
excluding goodwill impairment, share-based expense and amortization
of intangible assets and including the tax effect thereon, (3)
Adjusted net income margin, which refers to ANI as a percentage of
revenue less repair payments, (4) net cash, which refers to cash
and cash equivalents plus investments less long-term debt
(including the current portion) 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, goodwill impairment 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
Year Ended
Mar 31, 2020
Mar 31, 2019
Dec 31, 2019
Mar 31, 2020
Mar 31, 2019
(Amounts in millions)
(Amounts in millions)
Revenue (GAAP)
$
248.3
$
210.5
$
239.2
$
928.3
$
809.1
Less: Payments to repair centers
12.6
3.9
11.0
32.0
15.2
Revenue less repair payments
(non-GAAP)
$
235.8
$
206.6
$
228.2
$
896.2
$
794.0
Exchange rate impact
(3.5
)
(4.2
)
(4.4
)
(12.7
)
(17.3
)
Constant currency revenue less
repair payments (non-GAAP)
$
232.2
$
202.4
$
223.8
$
883.5
$
776.7
Reconciliation of cost of revenue (GAAP to non-GAAP)
Three months ended
Year ended
Mar 31, 2020
Mar 31, 2019
Dec 31, 2019
Mar 31, 2020
Mar 31, 2019
(Amounts in millions)
(Amounts in millions)
Cost of revenue (GAAP)
$
158.4
$
131.1
$
150.0
$
583.9
$
518.2
Less: Payments to repair centers
12.6
3.9
11.0
32.0
15.2
Less: Share-based compensation expense
0.8
0.9
1.1
4.6
4.3
Adjusted cost of revenue (excluding
payments to repair centers and
share-based
compensation expense) (non-GAAP)
$
145.0
$
126.3
$
137.9
$
547.3
$
498.8
Reconciliation of gross profit (GAAP to non-GAAP)
Three months ended
Year ended
Mar 31, 2020
Mar 31, 2019
Dec 31, 2019
Mar 31, 2020
Mar 31, 2019
(Amounts in millions)
(Amounts in millions)
Gross profit (GAAP)
$
90.0
$
79.4
$
89.2
$
344.3
$
290.9
Add: Share-based compensation expense
0.8
0.9
1.1
4.6
4.3
Adjusted gross profit (excluding
share-based compensation expense) (non-GAAP)
$
90.8
$
80.3
$
90.3
$
348.9
$
295.2
Three months ended
Year ended
Mar 31, 2020
Mar 31, 2019
Dec 31, 2019
Mar 31, 2020
Mar 31, 2019
Gross profit as a percentage of revenue
(GAAP)
36.2
%
37.7
%
37.3
%
37.1
%
36.0
%
Adjusted gross profit (excluding
share-based compensation expense) as a percentage of revenue less
repair payments (non-GAAP)
38.5
%
38.8
%
39.6
%
38.9
%
37.2
%
Reconciliation of selling and marketing expenses (GAAP to
non-GAAP)
Three months ended
Year ended
Mar 31, 2020
Mar 31, 2019
Dec 31, 2019
Mar 31, 2020
Mar 31, 2019
(Amounts in millions)
(Amounts in millions)
Selling and marketing expenses (GAAP)
$
15.2
$
11.3
$
13.0
$
52.8
$
44.6
Less: Share-based compensation expense
1.1
1.1
1.2
4.8
4.0
Adjusted selling and marketing expenses
(excluding share-based compensation
expense) (non-GAAP)
$
14.1
$
10.2
$
11.8
$
48.0
$
40.6
Three months ended
Year ended
Mar 31, 2020
Mar 31, 2019
Dec 31, 2019
Mar 31, 2020
Mar 31, 2019
Selling and marketing expenses as a
percentage of revenue (GAAP)
6.1
%
5.4
%
5.4
%
5.7
%
5.5
%
Adjusted selling and marketing expenses
(excluding share-based compensation expense) as a percentage of
revenue less repair payments (non-GAAP)
6.0
%
4.9
%
5.2
%
5.4
%
5.1
%
Reconciliation of general and administrative expenses (GAAP
to non-GAAP)
Three months ended
Year ended
Mar 31, 2020
Mar 31, 2019
Dec 31, 2019
Mar 31, 2020
Mar 31, 2019
(Amounts in millions)
(Amounts in millions)
General and administrative expenses
(GAAP)
$
32.4
$
31.3
$
33.5
$
128.6
$
115.3
Less: Share-based compensation expense
6.3
4.8
6.8
28.1
22.0
Adjusted general and administrative
expenses (excluding share-based
compensation expense) (non-GAAP)
$
26.1
$
26.5
$
26.8
$
100.4
$
93.2
Three months ended
Year ended
Mar 31, 2020
Mar 31, 2019
Dec 31, 2019
Mar 31, 2020
Mar 31, 2019
General and administrative expenses as a
percentage of revenue (GAAP)
13.1
%
14.9
%
14.0
%
13.9
%
14.2
%
Adjusted general and administrative
expenses (excluding share-based compensation expense) as a
percentage of revenue less repair payments (non-GAAP)
11.1
%
12.8
%
11.7
%
11.2
%
11.7
%
Reconciliation of operating profit / (loss) (GAAP to
non-GAAP)
Three months ended
Year ended
Mar 31, 2020
Mar 31, 2019
Dec 31, 2019
Mar 31, 2020
Mar 31, 2019
(Amounts in millions)
(Amounts in millions)
Operating profit (GAAP)
$
35.8
$
32.3
$
38.9
$
146.6
$
119.8
Add: Impairment of goodwill
4.1
-
-
4.1
-
Add: Share-based compensation expense
8.2
6.8
9.0
37.5
30.3
Add: Amortization of intangible assets
3.8
3.9
4.0
15.7
15.8
Adjusted operating profit (excluding
impairment of goodwill, share-based
compensation expense and amortization of intangible assets)
(non-GAAP)
$
51.9
$
43.0
$
51.9
$
203.8
$
165.9
Three months ended
Year ended
Mar 31, 2020
Mar 31, 2019
Dec 31, 2019
Mar 31,
2020
Mar 31,
2019
Operating profit as a percentage of
revenue (GAAP)
14.4
%
15.3
%
16.3
%
15.8
%
14.8
%
Adjusted operating profit (excluding
impairment of goodwill, share-based
compensation expense and amortization of intangible assets) as a
percentage of revenue less repair payments (non-GAAP)
22.0
%
20.8
%
22.8
%
22.7
%
20.9
%
Reconciliation of profit / (loss) (GAAP) to ANI
(non-GAAP)
Three months ended
Year ended
Mar 31, 2020
Mar 31, 2019
Dec 31, 2019
Mar 31, 2020
Mar 31, 2019
(Amounts in millions)
(Amounts in millions)
Profit (GAAP)
$
29.5
$
29.7
$
30.9
$
116.8
$
105.4
Add: Impairment of goodwill
4.1
-
-
4.1
-
Add: Share-based compensation expense
8.2
6.8
9.0
37.5
30.3
Add: Amortization of intangible assets
3.8
3.9
4.0
15.7
15.8
Less: Tax impact on share-based
compensation expense(1)
(2.2
)
(1.3
)
(2.0
)
(8.6
)
(7.1
)
Less: Tax impact on amortization of
intangible assets(1)
(1.1
)
(1.2
)
(1.0
)
(4.0
)
(4.0
)
Adjusted Net Income (excluding
impairment
of goodwill, share-based compensation
expense and amortization of intangible
assets, including tax effect* thereon)
(non-GAAP)
$
42.4
$
37.8
$
40.9
$
161.4
$
140.4
(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.
* Goodwill being non-tax deductible, there is no impact on tax
thereon
Three months ended
Year ended
Mar 31, 2020
Mar 31, 2019
Dec 31, 2019
Mar 31, 2020
Mar 31, 2019
Profit as a percentage of revenue
(GAAP)
11.9
%
14.1
%
12.9
%
12.6
%
13.0
%
Adjusted net income (excluding impairment
of goodwill, share-based compensation expense and amortization of
intangible assets including tax effect thereon) as a percentage of
revenue less repair payments (non-GAAP)
18.0
%
18.3
%
17.9
%
18.0
%
17.7
%
Reconciliation of basic earnings per ADS (GAAP to
non-GAAP)
Three months ended
Year ended
Mar 31, 2020
Mar 31, 2019
Dec 31, 2019
Mar 31, 2020
Mar 31, 2019
Basic earnings per ADS (GAAP)
$
0.59
$
0.59
$
0.62
$
2.35
$
2.10
Add: Adjustments for impairment of
goodwill, share-based compensation expense and amortization of
intangible assets
0.32
0.21
0.26
1.15
0.92
Less: Tax impact on share-based
compensation expense and amortization of intangible assets *
(0.06
)
(0.04
)
(0.06
)
(0.25
)
(0.22
)
Adjusted basic earnings per ADS (excluding
impairment of goodwill, share-based compensation expenses and
amortization of intangible assets, including tax effect thereon)
(non-GAAP)
$
0.85
$
0.76
$
0.82
$
3.25
$
2.80
* Goodwill being non-tax deductible, there is no impact on tax
thereon
Reconciliation of diluted earnings per ADS (GAAP to
non-GAAP)
Three months ended
Year ended
Mar 31, 2020
Mar 31, 2019
Dec 31, 2019
Mar 31, 2020
Mar 31, 2019
Diluted earnings per ADS
(GAAP)
$
0.57
$
0.57
$
0.60
$
2.24
$
2.02
Add: Adjustments for impairment of
goodwill, share-based compensation expense and amortization of
intangible assets
0.31
0.21
0.25
1.10
0.88
Less: Tax impact on share-based
compensation expense and amortization of intangible assets *
(0.06
)
(0.05
)
(0.05
)
(0.24
)
(0.21)
Adjusted diluted earnings per ADS
(excluding impairment of goodwill, share-based compensation expense
and amortization of intangible assets, including tax effect
thereon) (non-GAAP)
$
0.82
$
0.73
$
0.80
$
3.10
$
2.69
* Goodwill being non-tax deductible, there is no impact on tax
thereon
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200423005349/en/
Investors: David Mackey EVP – 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
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