Luxoft Holding, Inc LXFT, a leading provider of software development services and innovative IT solutions to a global client base, today announced results for the three and nine months ended December 31, 2016.
Highlights – Three Months Ended December 31, 2016
- US GAAP revenue on the reported basis amounted to $206.9 million, an increase of 20.3% year over year and 5.3% sequentially
- US GAAP revenue on the constant currency basis amounted to $209.7 million, an increase of 21.9% year over year and 6.7% sequentially
- US GAAP revenue outside of the top three legacy accounts increased 53.0% year over year
- Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $37.5 million and EBITDA margin was 18.1%, compared to $32.8 million and 19.1% in the year-ago quarter and $37.4 million and 19.1% sequentially
- Diluted earnings per share (EPS) on a US GAAP basis was $0.55, compared to $0.52 in the year-ago quarter and $0.48 sequentially
- Diluted EPS on a non-GAAP basis was $0.82, compared to $0.72 in the year-ago quarter, and $0.83 sequentially
Highlights – Nine Months Ended December 31, 2016
- US GAAP revenue amounted to $581.4 million, an increase of 20.7% year over year
- US GAAP revenue on the constant currency basis amounted to $588.0 million, an increase of 22.1% year over year
- Adjusted EBITDA was $104.6 million and EBITDA margin was 18.0%, compared to $96.9 million and 20.1% for the same period last year
- Diluted EPS on a US GAAP basis was $1.44, compared to $1.62 in the nine months of last year
- Diluted EPS on a non-GAAP basis was $2.27, compared to $2.16 in the nine months of last year
- High Potential Account (HPA) group generated revenues in excess of $160 million, an increase of over 110% year over year
- Top one client concentration decreased 6.5 points year over year
- Productivity per engineer reached $78,761, an increase of 2.0% vs. the same period a year ago
Revenue for the three months ended December 31, 2016 increased to $206.9 million, up 20.3% from $171.9 million for the same period a year ago, and 5.3% sequentially. Adjusted EBITDA was $37.5 million with corresponding margins of 18.1%, as compared to $32.8 million and 19.1%, respectively, in the year ago quarter, and $37.4 million and 19.1% sequentially. US GAAP net income was $18.5 million, or $0.55 per diluted share, compared to $18.0 million and $0.52 per diluted share for the same period a year ago, and $16.3 million and $0.48 sequentially. Non-GAAP net income was $27.9 million, or $0.82 per diluted share, compared to $24.8 million and $0.72 per diluted share for the same period a year ago, and $27.8 million and $0.83 sequentially. Reconciliations between non-GAAP financial measures and US GAAP operating results and diluted EPS are included at the end of this release.
Revenue for the nine months ended December 31, 2016 increased to $581.4 million, up 20.7% from $481.5 million for the same period a year ago. US GAAP net income was $48.9 million, or $1.44 per diluted share, compared to $55.7 million and $1.62 per diluted share for the same period a year ago. Non-GAAP net income was $76.8 million, or $2.27 per diluted share, compared to $74.0 million and $2.16 per diluted share for the same period a year ago.
"We are happy to deliver good quarterly results to our shareholders, reflecting healthy growth and margins in line with our guidance. It has been a volatile time for businesses worldwide; however, we welcome challenges as they provide opportunities to transform the company and make it even stronger," said Dmitry Loschinin, CEO and President of Luxoft. He continued: "We are happy to see solid growth across our core verticals mostly driven by High Potential Accounts across Automotive, Financial Services and Telecom sectors. At this time, the HPA group in the aggregate delivers close to 30% of revenues and is growing 110-120% on an annual basis. We believe we are successfully rotating the source of growth for the company to a new client base outside of our legacy clients. Current pace of our account development and pipeline dynamic combined with prevailing trends around autonomous driving, robo-advisory, cloud enablement, and other disruptive digital technologies that support IT spending momentum, we stand optimistic on our ability to capture the incoming demand."
Virtually all of Luxoft's key verticals delivered strong performance during the course of the year with Telecom and Automotive and Transport delivering robust annual growth of 71.6% and 45.5%, respectively, for the nine months ended December 31, 2016. For the same period, the Company generated historically steady revenue growth across its core geographies: Swiss revenues increased 73.2%, German revenues increased 37.8%, and U.S. revenues increased 23.5% compared to the year-ago period. Luxoft finished the first nine months of this financial year with 12,036 employees, of which 10,149 were delivery professionals, who continued to drive average productivity during this period to another record – in excess of $78,700 per engineer or 2.0% annual growth. The effective rate for the nine months ended December 31, 2016 was 15.0%, the bottom of the expected 15%-16% range for current fiscal year.
"We are pleased to announce a set of quarterly results marked by strong operational and financial performance. Despite some headwinds in foreign exchange, political, and other macro aspects we were able to reinvest into the company, once again honored our annual earnings outlook, and reported financial results in-line with the expectations. Our revenue per billable engineer keeps climbing as we consistently offer more value to our clients and increase productivity within the company. Our cash cushion and the level of free cash flow generation remain healthy and stable as we continue our bolt-on acquisition strategy, being conscious of shareholder dilution and remaining virtually free of the long-term debt," said Roman Yakushkin, Chief Financial Officer.
Outlook for the Year Ending March 31, 2017:
The Company is confirming the following guidance for the financial year ending March 31, 2017:
- Revenue is expected to be at least $781 million, an increase of at least 20.0% year over year
- Adjusted EBITDA margin is expected to be in the range of 17.0% - 19.0%
- Diluted EPS guidance on a GAAP basis is expected to be at least $1.65; diluted EPS on a non-GAAP basis is expected to be at least $2.85
- EPS is based on an estimated weighted average of 33,967,797 diluted shares
Reconciliations between forward-looking non-GAAP financial measures and comparable forward-looking measures on a US GAAP basis are included at the end of this release.
Conference Call Information:
A conference call will be conducted with the members of Luxoft's senior management at 8:00 a.m. EST on Wednesday, February 15, 2017 to review the financial and operational performance of the Company for the above-mentioned period.
To participate in the conference call please dial 877-407-8293 (for domestic U.S. callers) or 201-689-8349 (for international callers). A live webcast will also be available during the call and can be accessed at http://edge.media-server.com/m/p/3vfj55sp/lan/en. Participants, please access the website at least 10 minutes prior to the call to register and follow the instructions provided on the website to download and install the necessary applications.
If you are unable to join our live event, a replay will be available by dialing 877-660-6853 (for domestic U.S. callers) or 201-612-7415 (for international callers) and entering the conference ID# 13653359. The replay will be available from two hours as of the end of the call and up to 11:59 p.m. EST on March 1, 2017. The replay will also be available at Luxoft's Investor Relations portal for 14 days following the call.
About Luxoft:
Luxoft Holding, Inc. LXFT is a leading provider of software development services and innovative IT solutions to a global client base consisting primarily of large multinational corporations. Luxoft's software development services consist of core and mission critical custom software development and support, product engineering and testing, and technology consulting. Luxoft's solutions are based on its proprietary products and platforms that directly impact its clients' business outcomes and efficiently deliver continuous innovation. The Company develops its solutions and delivers its services from 32 dedicated delivery centers worldwide. It has more than 12,000 employees across 39 offices in 19 countries in North America, Mexico, Western and Eastern Europe, Asia Pacific, and South Africa. Luxoft is incorporated in Tortola, British Virgin Islands, has its operating headquarters office in Zug, Switzerland and is listed on the New York Stock Exchange. For more information, please visit http://www.luxoft.com.
Non-GAAP Financial Measures:
To supplement our financial results presented in accordance with US GAAP, this press release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: earnings before interest, tax, depreciation and amortization (EBITDA); adjusted EBITDA; non-GAAP net income; and non-GAAP diluted Earnings per share (EPS). Non-GAAP net income and non-GAAP EPS exclude stock-based compensation expense, amortization of fair value adjustments to intangible assets and impairment thereof and other acquisitions related costs, that may include changes in the fair value of contingent consideration liabilities. Non-GAAP diluted EPS are calculated as non-GAAP net income divided by weighted average number of diluted shares. We provide these non-GAAP financial measures because we believe that they present a better measure of our core business and management uses them internally to evaluate our ongoing performance. Accordingly, we believe that these non-GAAP measures are useful to investors in enhancing their understanding of our operating performance. These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable US GAAP measures. The non-GAAP results and a full reconciliation between US GAAP and non-GAAP results are provided in the accompanying tables at the end of this press release.
Forward-Looking Statements:
In addition to historical information, this release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include information about possible or assumed future results of our business and financial condition, as well as the results of operations, liquidity, plans and objectives. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential," or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding: the persistence and intensification of competition in the IT industry; the future growth of spending in IT services outsourcing generally and in each of our industry verticals, application outsourcing and custom application development and offshore research and development services; the level of growth of demand for our services from our clients; the level of increase in revenues from our new clients; seasonal trends and the budget and work cycles of our clients; general economic and business conditions in our locations, including geopolitical instability and social, economic or political uncertainties, particularly in Russia and Ukraine, and any potential sanctions, restrictions or responses to such conditions imposed by some of the locations in which we operate; the levels of our concentration of revenues by vertical, geography, by client and by type of contract in the future; the expected timing of the increase in our corporate tax rate, or actual increases to our effective tax rate which we may experience from time to time; our expectations with respect to the proportion of our fixed price contracts; our expectation that we will be able to integrate and manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands we expect our rapid growth to place on our management and infrastructure; the sufficiency of our current cash, cash flow from operations, and lines of credit to meet our anticipated cash needs; the high proportion of our cost of services comprised of personnel salaries; our plans to introduce new products for commercial resale and licensing in addition to providing services; our anticipated joint venture with one of our clients; and our continued financial relationship with IBS Group Holding limited and its subsidiaries including expectations for the provision and purchase of services and purchase and lease of equipment; and other factors discussed under the heading "Risk Factors" in the Annual Report on Form 20-F for the year ended March 31, 2016 and other documents filed with or furnished to the Securities and Exchange Commission. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.
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LUXOFT HOLDING, INC CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of US dollars, except share amounts) |
||||||||
| December 31, | As of March 31, | |||||||
| 2016 | 2016 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 98,064 | $ | 108,545 | ||||
|
Trade accounts receivable, net of allowance for doubtful accounts
of |
145,814 | 131,204 | ||||||
| Unbilled revenue | 17,539 | 16,081 | ||||||
| Work-in-progress | 2,109 | 1,595 | ||||||
| Due from related parties | 1,770 | 2,180 | ||||||
| VAT and other taxes receivable | 1,684 | 1,814 | ||||||
| Advances issued | 3,271 | 2,413 | ||||||
| Other current assets | 6,164 | 3,333 | ||||||
| Total current assets | 276,415 | 267,165 | ||||||
| Non-current assets | ||||||||
| Deferred tax assets | 5,304 | 3,174 | ||||||
| Property and equipment, net | 45,403 | 46,072 | ||||||
| Intangible assets, net | 90,885 | 43,780 | ||||||
| Goodwill | 52,210 | 30,285 | ||||||
| Other non-current assets | 7,725 | 4,066 | ||||||
| Total non-current assets | 201,527 | 127,377 | ||||||
| Total assets | $ | 477,942 | $ | 394,542 | ||||
| Liabilities and shareholders' equity | ||||||||
| Current liabilities | ||||||||
| Short-term borrowings | $ | 542 | $ | 460 | ||||
| Accounts payable | 7,036 | 8,266 | ||||||
| Accrued liabilities | 33,053 | 27,357 | ||||||
| Deferred revenue | 2,678 | 5,048 | ||||||
| Due to related parties | 361 | 518 | ||||||
| VAT and other taxes payable | 20,068 | 22,532 | ||||||
| Payable under foreign exchange contracts | 418 | 2,476 | ||||||
| Payable for acquisitions, current | 17,815 | 5,595 | ||||||
| Other current liabilities | 2,053 | 1,503 | ||||||
| Total current liabilities | 84,024 | 73,755 | ||||||
| Deferred tax liability, non-current | 5,591 | 5,511 | ||||||
| Contingent payable for software acquisition, non-current | 17,500 | 11,786 | ||||||
| Other non-current liabilities | 1,522 | 1,757 | ||||||
| Total liabilities | 108,637 | 92,809 | ||||||
| Shareholders' equity | ||||||||
|
Share capital (80,000,000 shares authorized; 33,241,472 issued and |
— | — | ||||||
| Additional paid-in capital | 126,407 | 107,477 | ||||||
|
Common stock held in treasury, at cost (44,724 shares as of |
(3,172) | (2,665) | ||||||
| Retained earnings | 249,773 | 200,870 | ||||||
| Accumulated other comprehensive loss | (3,735) | (3,981) | ||||||
| Total shareholders' equity attributable to the Group | 369,273 | 301,701 | ||||||
| Non-controlling interest | 32 | 32 | ||||||
| Total equity | 369,305 | 301,733 | ||||||
| Total liabilities and equity | $ | 477,942 | $ | 394,542 | ||||
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LUXOFT HOLDING, INC CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands of US dollars, except share and per share amounts) |
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| For the three months |
For the nine months |
||||||||||||||||
| ended December 31, | ended December 31, | ||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| Unaudited | Unaudited | ||||||||||||||||
| Sales of services | $ | 206,924 | $ | 171,946 | $ | 581,430 | $ | 481,543 | |||||||||
| Operating expenses | |||||||||||||||||
| Cost of services (exclusive of depreciation and amortization) | 124,688 | 97,412 | 345,348 | 275,835 | |||||||||||||
| Selling, general and administrative expenses | 54,291 | 45,229 | 157,530 | 123,505 | |||||||||||||
| Depreciation and amortization | 9,362 | 6,201 | 24,587 | 17,111 | |||||||||||||
| (Gain)/Loss from revaluation of contingent liability | (1,424) | 61 | (1,363) | 845 | |||||||||||||
| Operating income | 20,007 | 23,043 | 55,328 | 64,247 | |||||||||||||
| Other income and expenses | |||||||||||||||||
| Interest income/(expense), net | 6 | 61 | 10 | (28) | |||||||||||||
| Other gains, net | 3,630 | 1,025 | 4,364 | 1,601 | |||||||||||||
| Gain from foreign currency exchange contract | 953 | 595 | 1,314 | 1,280 | |||||||||||||
| Net foreign exchange loss | (2,847) | (3,474) | (3,493) | (1,905) | |||||||||||||
| Income before income taxes | 21,749 | 21,250 | 57,523 | 65,195 | |||||||||||||
| Income tax expense | (3,217) | (3,211) | (8,620) | (9,536) | |||||||||||||
| Net income | $ | 18,532 | $ | 18,039 | $ | 48,903 | $ | 55,659 | |||||||||
| Net (income)/loss attributable to the non-controlling interest | — | — | — | — | |||||||||||||
| Net income attributable to the Group | $ | 18,532 | $ | 18,039 | $ | 48,903 | $ | 55,659 | |||||||||
| Basic EPS per Class A and Class B ordinary share | |||||||||||||||||
| Net income attributable to the Group per ordinary share | $ | 0.56 | $ | 0.55 | $ | 1.47 | $ | 1.69 | |||||||||
| Weighted average ordinary shares outstanding | 33,225,850 | 32,892,577 | 33,210,119 | 32,885,820 | |||||||||||||
| Diluted EPS per Class A and Class B ordinary share | |||||||||||||||||
| Diluted net income attributable to the Group per ordinary share | $ | 0.55 | $ | 0.52 | $ | 1.44 | $ | 1.62 | |||||||||
| Diluted weighted average ordinary shares outstanding | 33,878,605 | 34,523,031 | 33,879,650 | 34,267,675 | |||||||||||||
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LUXOFT HOLDING, INC CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands of US dollars) |
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|
For the three months |
For the nine months |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Unaudited | Unaudited | |||||||||||||||
| Net income | $ | 18,532 | $ | 18,039 | $ | 48,903 | $ | 55,659 | ||||||||
| Other comprehensive income/(loss) income, net of tax | ||||||||||||||||
| Gains on derivative instruments, net of tax effect of $74 and $173 | 1,648 | — | 2,258 | — | ||||||||||||
| Translation adjustments with no tax effects | (367) | (288) | (2,012) | (426) | ||||||||||||
| Total other comprehensive income/(loss) | 1,281 | (288) | 246 | (426) | ||||||||||||
| Comprehensive income | 19,813 | 17,751 | 49,149 | 55,233 | ||||||||||||
|
Comprehensive income (income)/loss attributable to the |
— | — | — | — | ||||||||||||
| Comprehensive income attributable to the Group | $ | 19,813 | $ | 17,751 | $ | 49,149 | $ | 55,233 | ||||||||
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LUXOFT HOLDING, INC CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (In thousands of US dollars) |
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|
For the nine months |
|||||||
| ended December 31, | |||||||
| 2016 | 2015 | ||||||
| (unaudited) | |||||||
| Operating activities | |||||||
| Income from operations | $ | 48,903 | $ | 55,659 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 24,587 | 17,111 | |||||
| Deferred tax benefit | (1,434) | (1,783) | |||||
| Foreign currency exchange contracts income | (1,314) | (1,280) | |||||
| Loss on foreign exchange | 3,493 | 1,905 | |||||
| Provision for doubtful accounts | 417 | 458 | |||||
| (Gain)/loss from revaluation of contingent liability | (1,363) | 845 | |||||
| Share-based compensation | 21,515 | 13,762 | |||||
| Changes in operating assets and liabilities: | |||||||
| Trade accounts receivable and unbilled revenue | (3,389) | (1,639) | |||||
| Work-in-progress | (514) | (728) | |||||
| Due to and from related parties | 261 | (1,665) | |||||
| Accounts payable | (5,839) | (3,480) | |||||
| Accrued liabilities | (3,104) | 988 | |||||
| Deferred revenue | (2,897) | (3,426) | |||||
| Changes in other assets and liabilities | (4,781) | (226) | |||||
| Net cash provided by operating activities | 74,541 | 76,501 | |||||
| Investing activities | |||||||
| Purchases of property and equipment | (14,574) | (15,067) | |||||
| Purchases of intangible assets | (2,930) | (3,897) | |||||
| Proceeds from disposal of property and equipment | — | 40 | |||||
| Acquisitions, net of cash acquired | (54,464) | — | |||||
| Short-term deposits | — | (15,000) | |||||
| Net cash used in investing activities | (71,968) | (33,924) | |||||
| Financing activities | |||||||
| Net repayment of short-term borrowings | (5,998) | (1,199) | |||||
| Acquisition of business, deferred consideration | (4,534) | (3,292) | |||||
| Repurchases of common stock | (1,266) | — | |||||
| Repayment of capital lease obligations | (123) | (84) | |||||
| Net cash used in financing activities | (11,921) | (4,575) | |||||
| Effect of exchange rate changes on cash and cash equivalents | (1,133) | (1,019) | |||||
| Net (decrease)/ increase in cash and cash equivalents | (10,481) | 36,983 | |||||
| Cash and cash equivalents at beginning of year | 108,545 | 45,593 | |||||
| Cash and cash equivalents at end of period | $ | 98,064 | $ | 82,576 | |||
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Luxoft Holding, Inc |
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| Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Measures (Unaudited) | ||||||||||||||||||||||||||||
| (In thousands of US dollars, except per share amounts and percentages) | ||||||||||||||||||||||||||||
| Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||||
| 2016 | 2016 | 2016 | 2016 | 2016 | 2016 | |||||||||||||||||||||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||||||||||
| Operating income | 20,007 | 10,231 | (a) | 30,238 | 55,328 | 30,839 | (a) | 86,167 | ||||||||||||||||||||
| Operating margin | 9.7 | % | 4.9 | % | 14.6 | % | 9.5 | % | 5.3 | % | 14.8 | |||||||||||||||||
| Net income | 18,532 | 9,416 | (b) | 27,948 | 48,903 | 27,913 | (b) | 76,816 | ||||||||||||||||||||
| Diluted earnings per share | $ | 0.55 | $ | 0.82 | $ | 1.44 | $ | 2.27 | ||||||||||||||||||||
| Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||||
| 2015 | 2015 | 2015 | 2015 | 2015 | 2015 | |||||||||||||||||||||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||||||||||
| Operating income | 23,043 | 7,254 | (a) | 30,297 | 64,247 | 20,168 | (a) | 84,415 | ||||||||||||||||||||
| Operating margin | 13.4 | % | 4.2 | % | 17.6 | % | 13.3 | % | 4.2 | % | 17.5 | |||||||||||||||||
| Net income | 18,039 | 6,733 | (b) | 24,772 | 55,659 | 18,355 | (b) | 74,014 | ||||||||||||||||||||
| Diluted earnings per share | $ | 0.52 | $ | 0.72 | $ | 1.62 | $ | 2.16 | ||||||||||||||||||||
| Luxoft Holding, Inc | |||||||||||||||||
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Reconciliations of Non-GAAP Financial Measures to Comparable
GAAP Measures |
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| (In thousands of US dollars, except per share amounts and percentages) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| (a) | 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Adjustments to GAAP operating income | |||||||||||||||||
| Stock-based compensation expense | $ | 7,625 | $ | 5,335 | $ | 21,514 | $ | 13,762 | |||||||||
| Amortization of purchased Intangible assets | 3,806 | 1,858 | 8,359 | 5,561 | |||||||||||||
| (Gain)/Loss from revaluation of contingent liability | (1,424) | 61 | (1,363) | 845 | |||||||||||||
| Acquisition related costs | 224 | — | 2,329 | — | |||||||||||||
| Total Adjustments to GAAP income from operations: | $ | 10,231 | $ | 7,254 | $ | 30,839 | $ | 20,168 | |||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| (b) | 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Adjustments to GAAP net income | |||||||||||||||||
| Stock-based compensation expense | $ | 7,625 | $ | 5,335 | $ | 21,514 | $ | 13,762 | |||||||||
| Amortization of purchased Intangible assets | 3,806 | 1,858 | 8,359 | 5,561 | |||||||||||||
| (Gain)/Loss from revaluation of contingent liability | (1,424) | 61 | (1,363) | 845 | |||||||||||||
| Acquisition related costs | 224 | — | 2,329 | — | |||||||||||||
| Tax effect of the adjustments | (815) | (521) | (2,926) | (1,813) | |||||||||||||
| Total Adjustments to GAAP net income | $ | 9,416 | $ | 6,733 | $ | 27,913 | $ | 18,355 | |||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| December 31, | December 31, | |||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||
| Net income | $ | 18,532 | $ | 18,039 | $ | 48,903 | $ | 55,659 | ||||||||||
| Adjusted for: | ||||||||||||||||||
| Interest (Income)/Expense | (6) | (61) | (10) | 28 | ||||||||||||||
| Income tax | 3,217 | 3,211 | 8,620 | 9,536 | ||||||||||||||
| Depreciation and Amortization | 9,362 | 6,201 | 24,587 | 17,111 | ||||||||||||||
| EBITDA | $ | 31,105 | $ | 27,390 | $ | 82,100 | $ | 82,334 | ||||||||||
| Adjusted for | ||||||||||||||||||
| Stock based compensation | 7,625 | 5,335 | 21,514 | 13,762 | ||||||||||||||
| (Gain)/Loss from revaluation of contingent liability | (1,424) | 61 | (1,363) | 845 | ||||||||||||||
| Acquisition related costs | 224 | — | 2,329 | — | ||||||||||||||
| Adjusted EBITDA | $ | 37,530 | $ | 32,786 | $ | 104,580 | $ | 96,941 | ||||||||||
| Luxoft Holding, Inc | ||||||||||||||||
| Schedule of supplemental information (Unaudited) | ||||||||||||||||
| (In thousands; except percentages) | ||||||||||||||||
| Revenue for the three Months Ended December 31, | ||||||||||||||||
| 2016 | 2015 | |||||||||||||||
| Client location | Amount | % of sales | Amount | % of sales | ||||||||||||
| U.S. | $ | 71,177 | 34.4 | % | $ | 52,262 | 30.4 | % | ||||||||
| UK | 50,230 | 24.3 | % | 60,049 | 34.9 | % | ||||||||||
| Germany | 32,471 | 15.7 | % | 23,714 | 13.8 | % | ||||||||||
| Russia | 12,633 | 6.1 | % | 10,187 | 5.9 | % | ||||||||||
| Switzerland | 8,235 | 4.0 | % | 6,136 | 3.6 | % | ||||||||||
| Singapore | 488 | 0.2 | % | 2,080 | 1.2 | % | ||||||||||
| Rest of Europe | 23,749 | 11.5 | % | 11,956 | 7.0 | % | ||||||||||
| Other | 7,941 | 3.8 | % | 5,562 | 3.2 | % | ||||||||||
| Total | $ | 206,924 | 100 | % | $ | 171,946 | 100 | % | ||||||||
| Revenue for the nine months ended December 31, | ||||||||||||||||
| 2016 | 2015 | |||||||||||||||
| Client location | Amount | % of sales | Amount | % of sales | ||||||||||||
| U.S. | $ | 184,490 | 31.7 | % | $ | 149,435 | 31.0 | % | ||||||||
| UK | 168,571 | 29.0 | % | 172,041 | 35.7 | % | ||||||||||
| Germany | 85,618 | 14.7 | % | 62,122 | 12.9 | % | ||||||||||
| Russia | 27,633 | 4.8 | % | 26,225 | 3.1 | % | ||||||||||
| Switzerland | 25,590 | 4.4 | % | 14,777 | 5.4 | % | ||||||||||
| Singapore | 3,905 | 0.7 | % | 7,218 | 1.5 | % | ||||||||||
| Rest of Europe | 63,766 | 11.0 | % | 32,828 | 6.8 | % | ||||||||||
| Other | 21,857 | 3.7 | % | 16,897 | 3.6 | % | ||||||||||
| Total | $ | 581,430 | 100 | % | $ | 481,543 | 100 | % | ||||||||
| Revenue for the three Months Ended December 31, | ||||||||||||||||
| 2016 | 2015 | |||||||||||||||
| Industry vertical | Amount | % of sales | Amount | % of sales | ||||||||||||
| Financial Services | $ | 122,333 | 59.1 | % | $ | 114,562 | 66.6 | % | ||||||||
| Automotive and transport | 32,717 | 15.8 | % | 23,881 | 13.9 | % | ||||||||||
| Telecom | 17,820 | 8.6 | % | 9,306 | 5.4 | % | ||||||||||
| Technology | 13,193 | 6.4 | % | 11,361 | 6.6 | % | ||||||||||
| Healthcare | 10,101 | 4.9 | % | — | — | % | ||||||||||
| Travel and Aviation | 6,510 | 3.1 | % | 7,754 | 4.5 | % | ||||||||||
| Energy | 3,324 | 1.6 | % | 3,241 | 1.9 | % | ||||||||||
| Other | 926 | 0.5 | % | 1,841 | 1.1 | % | ||||||||||
| Total | $ | 206,924 | 100 | % | $ | 171,946 | 100 | % | ||||||||
|
|
||||||||||||||||
| Revenue for the nine months ended December 31, | ||||||||||||||||
| 2016 | 2015 | |||||||||||||||
| Industry vertical | Amount | % of sales | Amount | % of sales | ||||||||||||
| Financial Services | $ | 367,837 | 63.3 | % | $ | 330,808 | 68.7 | % | ||||||||
| Automotive and transport | 81,396 | 14.0 | % | 55,958 | 11.6 | % | ||||||||||
| Telecom | 46,813 | 8.1 | % | 27,273 | 5.7 | % | ||||||||||
| Technology | 34,069 | 5.9 | % | 33,409 | 6.9 | % | ||||||||||
| Travel and Aviation | 21,598 | 3.7 | % | 21,804 | 4.5 | % | ||||||||||
| Healthcare | 18,671 | 3.2 | % | — | — | % | ||||||||||
| Energy | 9,303 | 1.6 | % | 9,515 | 2.0 | % | ||||||||||
| Other | 1,743 | 0.2 | % | 2,776 | 0.6 | % | ||||||||||
| Total | $ | 581,430 | 100 | % | $ | 481,543 | 100 | % | ||||||||
|
LUXOFT HOLDING, INC Reconciliations of Non-GAAP Forward-looking Financial Measures to Comparable GAAP Forward-looking Measures (Unaudited) (In thousands of US dollars, except share, per share amounts and percentages) |
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|
Year Ended |
|||||
| Revenue | $ | 781,000 | |||
| Net income | $ | 55,906 | |||
| Adjusted for: | |||||
| Interest Expense | 46 | ||||
| Income tax | 10,316 | ||||
| Depreciation and Amortization | 33,174 | ||||
| EBITDA | $ | 99,442 | |||
| Adjusted for: | |||||
| Stock based compensation | 28,274 | ||||
| Loss from revaluation of contingent liability | 61 | ||||
| Acquisition related costs | 5,177 | ||||
| Adjusted EBITDA | $ | 132,954 | |||
| Adjusted EBITDA margin | 17.0 | % | |||
| Net income | $ | 55,906 | |||
| Adjusted for: | |||||
| Stock-based compensation expense | 28,274 | ||||
| Amortization of purchased Intangible assets | 11,874 | ||||
| Loss from revaluation of contingent liability | 61 | ||||
| Acquisition related costs | 5,177 | ||||
| Tax effect of the adjustments | (4,649 | ) | |||
| Total adjustment to Net Income | $ | 40,737 | |||
| Adjusted Net Income | $ | 96,643 | |||
| Diluted weighted average ordinary shares outstanding | 33,967,797 | ||||
| Adjusted EPS | $ | 2.85 | |||
| Year Ended March 31, 2017 | |||||||||||||||
| GAAP | Adjustments | Non-GAAP | |||||||||||||
| Net income | $ | 55,906 | $ | 40,737 | $ | 96,643 | |||||||||
| Diluted earnings per share | $ | 1.65 | $ | 2.85 | |||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170214006467/en/
Luxoft Holding, Inc
Alina V. Plaia, +1-212-964-9900 ext. 2404
Vice-President,
Global Communications
IR@luxoft.com
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