WNS Announces Fiscal 2016 First Quarter Earnings
#NEWYORK & #MUMBAI, India- July 16, 2015– WNS (Holdings) Limited (WNS) (NYSE: WNS), a leading provider of global Business Process Management (BPM) services, today announced results for the fiscal 2016 first quarter ended June 30, 2015.
#GAAP Financials
Revenue of $134.1 million, up 2.4% from $131.0 million in Q1 of last year and up 1.0% from $132.9 million last quarter
Profit of $12.8 million, compared to $12.1 million in Q1 of last year and $14.7 million last quarter
Diluted earnings per ADS of $0.24, compared to $0.23 in Q1 of last year and $0.28 last quarter
Non-GAAP Financial Measures*
Revenue less repair payments of $126.5 million, up 3.6% from $122.1 million in Q1 of last year and up 0.3% from $126.1 million last quarter
Adjusted Net Income (ANI) of $22.6 million, compared to $20.4 million in Q1 of last year and $22.9 million last quarter
Adjusted diluted earnings per ADS of $0.42, compared to $0.39 in Q1 of last year and $0.43 last quarter
Other Metrics
Added 6 new clients in the quarter, expanded 9 existing relationships
Days sales outstanding (DSO) at 28 days
Global headcount of 29,672 as of June 30, 2015
Revenue less repair payments* in the fiscal first quarter was $126.5 million, representing a 3.6% increase versus the first quarter of last year and a 0.3% increase from the previous quarter. Excluding exchange rate impacts, constant currency revenue less repair payments* in the fiscal first quarter grew 9.5% versus Q1 of last year, and 0.6% sequentially. Year-over-year, fiscal Q1 revenue was adversely impacted by depreciation in the British Pound, Australian Dollar, South African Rand and Euro against the US Dollar. These headwinds were more than offset by revenue growth driven by both existing client expansions and the ramp in new account wins. Year-over-year, revenue improvement was paced by growth in emerging verticals, including Shipping and Logistics, Utilities, Retail/CPG and Healthcare, which all grew in excess of 15%. Sequentially, revenue less repair payments* improved despite headwinds from committed productivity improvements and currency movements net of hedging.
Adjusted operating margin* for the first quarter was 20.0%, as compared to 17.9% in Q1 of last year and 20.7% reported in the prior quarter. On a year-over-year basis, adjusted operating margin* improved as a result of currency movements net of hedging, improved seat utilization, and operating leverage associated with higher revenue. Partially offsetting this favorability was the impact of our annual wage increases. The sequential reduction in adjusted operating margin* was largely driven by currency, with the quarterly impact of wage increases being offset by lower SG&A and improved seat utilization.
Adjusted net income (ANI)* in the fiscal first quarter was $22.6 million, up $2.3 million as compared to Q1 of last year and down $0.2 million from the previous quarter. First quarter ANI* margin was 17.9%, as compared to 16.7% in Q1 of last year, and 18.2% reported last quarter.
From a balance sheet perspective, WNS ended Q1 with $135.2 million in cash and investments, and $8.2 million of gross debt. In the first quarter, the company generated $17.0 million in cash from operations, and had $8.6 million in capital expenditures. Days sales outstanding were 28 days, as compared to 32 days in Q1 of last year and 28 days reported in the previous quarter. During Q1, WNS also repurchased 770,000 ADS’s at an average price of $26.79 per ADS, totaling $20.7 million.
“We are pleased with our first quarter results, the company’s current business momentum, and the overall demand environment for BPM services,” said Keshav Murugesh, WNS’s Chief Executive Officer. “Our pipeline remains robust, and the company is focused on improving sales productivity to drive accelerated revenue growth. While WNS’s positioning in the marketplace is strong and differentiated, we will continue our investments in the areas of domain expertise, analytics, technology enablement and digitization in order to enhance existing capabilities and create new, innovative solutions. We believe these strategic objectives are aligned with the direction of the BPM market, and will enable WNS to produce superior results for our customers and shareholders.”
“The company has updated our forecast for fiscal 2016 based on current visibility levels and exchange rates,” said Sanjay Puria, WNS’s Chief Financial Officer. “Our revised guidance for the year reflects top line growth of 4% to 9%, or 8% to 13% on a constant currency* basis. We currently have 95% visibility to the midpoint of the range. The increase in our guidance for adjusted net income* is the result of favorable currency movements and improved operational efficiency.”
Conference Call
WNS will host a conference call on July 16, 2015 at 8:00 a.m. (Eastern) to discuss the company’s quarterly results. To participate in the call, please use the following details: +1-877-415-3177; international dial-in +1-857-244-7320; participant passcode 50477663. A replay will be available for one week following the call at +1-888-286-8010; international dial-in +1-617-801-6888; passcode 55982490, as well as on the WNS website, www.wns.com, beginning two hours after the end of the call.
About WNS
WNS (Holdings) Limited (NYSE: WNS) is a leading global business process management company. WNS offers business value to 200+ global clients by combining operational excellence with deep domain expertise in key industry verticals including Travel, Insurance, Banking and Financial Services, Manufacturing, Retail and Consumer Packaged Goods, Shipping and Logistics, Healthcare and Utilities. WNS delivers an entire spectrum of business process management services such as finance and accounting, customer care, technology solutions, research and analytics and industry specific back office and front office processes. As of June 30, 2015, WNS had 29,672 professionals across 37 delivery centers worldwide including China, Costa Rica, India, Philippines, Poland, #Romania, #SouthAfrica, #Sri Lanka,#UnitedKingdom and the #UnitedStates. For more information, visit www.wns.com.
