StockSelector.com
  Research, Select, & Monitor Saturday, August 19, 2017 2:38:28 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Genpact Limited$28.49($.05)(.18%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 Genpact Reports Full Year and Fourth Quarter 2016 Results
   Friday, February 10, 2017 7:00:00 AM ET

Genpact Limited (G ), a global leader in digitally-powered business process management and services, today announced financial results for the fourth quarter and full year ended December 31, 2016.

https://mma.prnewswire.com/media/374266/122419_genpact_limited_logo_Logo.jpg

"We are pleased with our full year 2016 results, as we delivered strong Global Client BPO growth, expanded our adjusted operating margin and significantly grew our adjusted earnings per share," said N.V. "Tiger" Tyagarajan, Genpact’s president and CEO. "With that said, we are seeing heightened levels of volatility and uncertainty in the global environment. Now more than ever, enterprises need to be nimble and react quickly to compete in their respective markets. We believe our digital transformational services uniquely position us to drive value for clients. These consulting, digital and analytics services now account for approximately 20% of our Global Client revenues and collectively are growing significantly above our Global Client revenue growth rate."

Key Financial Results - Full Year 2016

-- Total revenue was $2.57 billion, up 4% year over year (up ~6% on a constant currency basis).

-- Income from operations was $340.8 million, up 2% year over year, with a corresponding margin of 13.3%. Adjusted income from operations was $397.4 million, up 5% year over year, with a corresponding margin of 15.5%.[3]

-- Diluted earnings per share were $1.28, up 17% year over year, and adjusted diluted earnings per share were $1.46, up 16% year over year.

-- New bookings[4] were approximately $2.65 billion, up 3% from $2.59 billion in 2015.

-- Genpact repurchased approximately 13.9 million of its common shares during 2016 for a total of $345 million at an average price per share of $24.76.

Key Financial Results - Fourth Quarter 2016

-- Total revenue was $682 million, up 5% year over year (up ~7% on a constant currency basis).

-- Income from operations was $98.1 million, up 17.6% year over year, with a corresponding margin of 14.4%. Adjusted income from operations was $113.6 million, up 19% year over year, with a corresponding margin of 16.7%.

-- Diluted earnings per share were $0.38, up 27% year over year, and adjusted diluted earnings per share were $0.43, up 24% year over year.

-- Genpact repurchased approximately 4.3 million of its common shares during the quarter for a total of $103 million at an average price per share of $23.73.

Revenue Details - Full Year 2016

-- Revenue from Global Clients was $2.14 billion, up 7% year over year (up ~9% on a constant currency basis), representing approximately 83% of total revenues.[5]

-- Revenue from GE was $428 million, down 7% year over year, representing approximately 17% of total revenues.[6]

-- Total BPO revenue was $2.07 billion, up 7% year over year, representing approximately 81% of total revenues.

-- Global Client BPO revenue was $1.75 billion, up 11% year over year (up ~13% on a constant currency basis).

-- GE BPO revenue was $326 million, down 8% year-over-year.

-- Total IT revenue was $500 million, down 5% year over year, representing approximately 19% of total revenues.

-- Global Client IT revenue was $398 million, down 6% year over year.

-- GE IT revenue was $102 million, down 3% year over year.

Revenue Details - Fourth Quarter 2016

-- Revenue from Global Clients was $576 million, up 9% year over year (up ~11% on a constant currency basis), representing approximately 85% of total revenues.

-- Revenue from GE was $106 million, down 10% year over year, representing approximately 15% of total revenues.

-- Total BPO revenue was $548 million, up 8% year over year, representing approximately 80% of total revenues.

-- Global Client BPO revenue was $469 million, up 12% year over year (up ~14% on a constant currency basis).

-- GE BPO revenue was $79 million, down 10% year over year.

-- Total IT revenue was $134 million, down 4% year over year, representing approximately 20% of total revenues.

-- Global Client IT revenue was $107 million, down 3% year over year.

-- GE IT revenue was $27 million, down 9% year over year.

Cash Flow from Operations

-- Cash from operations was $346 million in the full year 2016, up 6% from the full year 2015, and was $123 million in the fourth quarter of 2016, up 66% from $74 million in the fourth quarter of 2015.

2017 Outlook[7]

Genpact expects:

-- Total revenue for 2017 to be $2.61 to $2.68 billion (including an assumed adverse foreign exchange impact of approximately $33 million, almost all of which is reflected in Global Client revenue), which represents a growth range of 2% to 4%, or 3% to 6% on a constant currency basis;

-- Global Client revenue growth to be in the range of 4% to 7%, or 5% to 8% on a constant currency basis;

-- Adjusted income from operations margin[8] of approximately 15.7%; and

-- Adjusted diluted EPS[9] of $1.53 to $1.57.

Conference Call to Discuss Financial Results

Genpact’s management will host an hour-long conference call beginning at 8:00 a.m. ET on February 10, 2017 to discuss the company’s performance for the fourth quarter and full year 2016. To participate, callers can dial +1 (877) 654-0173 from within the U.S. or +1 (281) 973-6289 from any other country. Thereafter, callers will be prompted to enter the participant code, 49151521.

A live webcast of the call including slides with our comments will also be made available on the Genpact Investor Relations website at http://investors.genpact.com . For those who cannot participate in the call, a replay and podcast will be available on the Genpact website after the end of the call. A transcript of the call as well as the presentation slides will also be made available on the website.

About Genpact

Genpact (G ) stands for "generating business impact." We are a global leader in digitally-powered business process management and services. We architect the Lean DigitalSM enterprise through our patented Smart Enterprise Processes (SEPSM) framework that reimagines our clients’ operating models end-to-end, including the middle and back offices. This creates Intelligent OperationsSM that we help design, transform, and run. The impact on our clients is a high return on transformation investments through growth, efficiency, and business agility. For two decades, first as a General Electric division and later as an independent company, we have been passionately serving our clients. Today, we generate impact for a few hundred strategic clients, including approximately one-fifth of the Fortune Global 500, and have grown to over 75,000 people in 25 countries, with key offices in New York City. The resulting business process and industry domain expertise and experience running complex operations are a unique heritage and focus that help us drive the best choices across technology, analytics, and organizational design. For additional information, visit www.genpact.com.

Safe Harbor

This press release contains certain statements concerning our future growth prospects and forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those in such forward-looking statements. These risks, uncertainties and other factors include but are not limited to a slowdown in the economies and sectors in which our clients operate, a slowdown in the business process outsourcing and information technology services sectors, the risks and uncertainties arising from our past and future acquisitions, our ability to convert bookings to revenues, our ability to manage growth, factors which may impact our cost advantage, wage increases, changes in tax rates and tax legislation, our ability to attract and retain skilled professionals, risks and uncertainties regarding fluctuations in our earnings, foreign currency fluctuations, general economic conditions affecting our industry as well as other risks detailed in our reports filed with the U.S. Securities and Exchange Commission, including Genpact’s Annual Report on Form 10-K. These filings are available at www.sec.gov. Genpact may from time to time make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. Although Genpact believes that these forward-looking statements are based on reasonable assumptions, you are cautioned not to put undue reliance on these forward-looking statements, which reflect management’s current analysis of future events and should not be relied upon as representing management’s expectations or beliefs as of any date subsequent to the time they are made. Genpact undertakes no obligation to update any forward-looking statements that may be made from time to time by or on behalf of Genpact.

Contacts
Investors  Roger Sachs, CFA
           +1 (203) 808-6725
           roger.sachs@genpact.com
Media      Gail Marold
           +1 (919) 345-3899
           gail.marold@genpact.com
GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share data and share count)
                                                                                                                                                                        As of December 31,    As of December 31,
                                                                                                                                                                        2015                  2016
Assets
Current assets
Cash and cash equivalents                                                                                                                                               $         450,907     $         422,623
Accounts receivable, net                                                                                                                                                          590,137               615,265
Prepaid expenses and other current assets                                                                                                                                         154,025               189,148
Total current assets                                                                                                                                                    $         1,195,069   $         1,227,036
Property, plant and equipment, net                                                                                                                                                175,396               200,115
Deferred tax assets                                                                                                                                                               99,395                70,143
Investment in equity affiliates                                                                                                                                                   6,677                 4,800
Intangible assets, net                                                                                                                                                            98,601                72,049
Goodwill                                                                                                                                                                          1,038,346             1,069,408
Other assets                                                                                                                                                                      180,005               242,328
Total assets                                                                                                                                                            $         2,793,489   $         2,885,879
Liabilities and equity
Current liabilities
Short-term borrowings                                                                                                                                                   $         21,500      $         160,000
Current portion of long-term debt                                                                                                                                                 39,134                39,181
Accounts payable                                                                                                                                                                  10,086                9,767
Income taxes payable                                                                                                                                                              24,122                24,159
Accrued expenses and other current liabilities                                                                                                                                    499,638               498,247
Total current liabilities                                                                                                                                               $         594,480     $         731,354
Long-term debt, less current portion                                                                                                                                              737,332               698,152
Deferred tax liabilities                                                                                                                                                          2,093                 2,415
Other liabilities                                                                                                                                                                 155,228               162,790
Total liabilities                                                                                                                                                       $         1,489,133   $         1,594,711
Redeemable non-controlling interest                                                                                                                                               --                    4,520
Shareholders’ equity
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued                                                                                                            --                    --
Common shares, $0.01 par value, 500,000,000 authorized, 211,472,312 and 198,794,052 issued and outstanding as of December 31, 2015 and December 31, 2016, respectively            2,111                 1,984
Additional paid-in capital                                                                                                                                                        1,342,022             1,384,468
Retained earnings                                                                                                                                                                 411,508               358,121
Accumulated other comprehensive income (loss)                                                                                                                                     (451,285)             (457,925)
Total equity                                                                                                                                                            $         1,304,356   $         1,286,648
Total liabilities, redeemable non-controlling interest and equity                                                                                                       $         2,793,489   $         2,885,879
GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data and share count)
                                                                                                                                          Three months ended December 31,
                                                                                                                                          2014               2015               2016
Net revenues                                                                                                                              $    601,530       $    646,528       $    681,747
Cost of revenue                                                                                                                                359,199            393,937            405,672
Gross profit                                                                                                                              $    242,331       $    252,591       $    276,075
Operating expenses:
Selling, general and administrative expenses                                                                                                   167,285            165,413            170,714
Amortization of acquired intangible assets                                                                                                     7,926              6,638              7,419
Other operating (income) expense, net                                                                                                          (3,746)            (2,906)            (149)
Income from operations                                                                                                                    $    70,866        $    83,446        $    98,091
Foreign exchange gains (losses), net                                                                                                           (270)              1,171              (526)
Interest income (expense), net                                                                                                                 (8,582)            (2,023)            (5,012)
Other income (expense), net                                                                                                                    776                2,092              2,948
Income before equity-method investment activity, net and income tax expense                                                               $    62,790        $    84,686        $    95,501
Gain (loss) on equity-method investment activity, net                                                                                          (4,882)            (2,805)            (1,362)
Income before income tax expense                                                                                                          $    57,908        $    81,881        $    94,139
Income tax expense                                                                                                                             12,156             17,468             17,262
Net income                                                                                                                                $    45,752        $    64,413        $    76,877
Net loss (income) attributable to non-controlling interest/ redeemable non-controlling interest                                                --                 --                 232
Net income attributable to Genpact Limited shareholders                                                                                   $    45,752        $    64,413        $    77,109
Net income available to Genpact Limited common shareholders                                                                                    45,752             64,413             77,109
Earnings per common share attributable to Genpact Limited common shareholders
Basic                                                                                                                                          0.20               0.30               0.38
Diluted                                                                                                                                        0.21               0.30               0.38
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders
Basic                                                                                                                                          217,279,606        212,697,001        200,341,922
Diluted                                                                                                                                        221,353,612        215,675,065        203,431,310
GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data and share count)
                                                                                                                                          Year ended December 31,
                                                                                                                                          2014               2015               2016
Net revenues                                                                                                                              $    2,279,438     $    2,461,044     $    2,570,756
Cost of revenue                                                                                                                                1,378,088          1,493,547          1,554,707
Gross profit                                                                                                                              $    901,350       $    967,497       $    1,016,049
Operating expenses:
Selling, general and administrative expenses                                                                                                   585,646            608,114            653,029
Amortization of acquired intangible assets                                                                                                     28,543             28,513             27,183
Other operating (income) expense, net                                                                                                          (6,870)            (3,322)            (4,940)
Income from operations                                                                                                                    $    294,031       $    334,192       $    340,777
Foreign exchange gains (losses), net                                                                                                           (12,363)           5,269              2,630
Interest income (expense), net                                                                                                                 (29,395)           (31,267)           (16,184)
Other income (expense), net                                                                                                                    2,112              4,360              10,120
Income before equity-method investment activity, net and income tax expense                                                               $    254,385       $    312,554       $    337,343
Gain (loss) on equity-method investment activity, net                                                                                          (4,795)            (10,800)           (7,698)
Income before income tax expense                                                                                                          $    249,590       $    301,754       $    329,645
Income tax expense                                                                                                                             57,419             61,937             62,098
Net income                                                                                                                                $    192,171       $    239,817       $    267,547
Net loss (income) attributable to non-controlling interest/ redeemable non-controlling interest                                                (169)              --                 2,137
Net income attributable to Genpact Limited shareholders                                                                                   $    192,002       $    239,817       $    269,684
Net income available to Genpact Limited common shareholders                                                                               $    192,002       $    239,817       $    269,684
Earnings per common share attributable to Genpact Limited common shareholders
Basic                                                                                                                                     $    0.87          $    1.11          $    1.30
Diluted                                                                                                                                   $    0.85          $    1.09          $    1.28
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders
Basic                                                                                                                                          220,847,098        216,606,542        206,861,536
Diluted                                                                                                                                        225,168,665        219,145,044        210,126,023
GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
                                                                                                 Year ended December 31,
                                                                                                 2014           2015             2016
Operating activities
Net income attributable to Genpact Limited shareholders                                          $  192,002     $  239,817       $  269,684
Net  income (loss) attributable to non-controlling interest/redeemable non-controlling interest     169            --               (2,137)
Net income                                                                                       $  192,171     $  239,817       $  267,547
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation and amortization                                                                       51,064         54,286           54,553
Amortization of debt issuance costs (including loss on extinguishment of debt)                      3,240          13,546           1,531
Amortization of acquired intangible assets                                                          28,543         28,513           27,183
Intangible assets write-down                                                                        --             10,714           11,195
Reserve for doubtful receivables                                                                    3,107          2,449            7,282
Unrealized (gain) loss on revaluation of foreign currency asset/liability                           9,419          (4,999)          1,717
Equity-method investment activity, net                                                              4,795          10,800           7,698
Excess tax benefit on stock-based compensation                                                      --             (6,560)          --
Stock-based compensation expense                                                                    28,065         24,976           25,113
Deferred income taxes                                                                               (12,252)       (18,713)         30,454
Gain on divestiture                                                                                 --             --               (5,214)
Others, net                                                                                         1,291          (238)            (41)
Change in operating assets and liabilities:
Increase in accounts receivable                                                                     (24,088)       (78,923)         (48,612)
Increase in prepaid expenses, other current assets and other assets                                 (31,657)       (32,602)         (62,852)
Decrease in accounts payable                                                                        (7,268)        (3,988)          (463)
Increase in accrued expenses, other current liabilities and other  liabilities                      27,500         69,606           27,977
Increase (decrease) in income taxes payable                                                         (2,092)        18,757           704
Net cash provided by operating activities                                                        $  271,838     $  327,441       $  345,772
Investing activities
Purchase of property, plant and equipment                                                           (62,577)       (62,173)         (88,772)
Proceeds from sale of property, plant and equipment                                                 564            1,486            547
Investment in equity affiliates                                                                     --             (18,423)         (9,620)
Short term deposits placed                                                                          (25,000)       --               --
Redemption of short-term deposits                                                                   25,000         --               --
Payment for business acquisitions, net of cash acquired                                             (130,809)      (21,363)         (45,162)
Proceeds from divestiture of business, net of cash divested                                         --             --               17,242
Net cash used for investing activities                                                           $  (192,822)   $  (100,473)     $  (125,765)
Financing activities
Repayment of capital lease obligations                                                              (2,095)        (2,035)          (1,793)
Payment of debt issuance and refinancing costs                                                      --             (6,584)          --
Proceeds from long-term debt                                                                        --             800,000          --
Repayment of long-term debt                                                                         (6,750)        (684,875)        (40,000)
Proceeds from short-term borrowings                                                                 195,000        1,451,500        200,000
Repayment of short-term borrowings                                                                  (60,000)       (1,565,000)      (61,500)
Proceeds from issuance of common shares under stock-based compensation plans                        30,144         16,088           18,228
Payment for net settlement of stock-based awards                                                    (25,975)       (7,194)          (769)
Payment of earn-out/deferred consideration                                                          (1,088)        (230)            (1,485)
Distribution to non-controlling interest                                                            (1,487)        --               --
Payment for stock purchased and retired                                                             (302,625)      (226,917)        (345,200)
Payment for expenses related to stock purchase                                                      (2,543)        (197)            (279)
Excess tax benefit on stock-based compensation                                                      --             6,560            --
Net cash used for financing activities                                                           $  (177,419)   $  (218,884)     $  (232,798)
Effect of exchange rate changes                                                                     (11,085)       (18,965)         (15,493)
Net increase (decrease) in cash and cash equivalents                                                (98,403)       8,084            (12,791)
Cash and cash equivalents at the beginning of the period                                            571,276        461,788          450,907
Cash and cash equivalents at the end of the period                                               $  461,788     $  450,907       $  422,623
Supplementary information
Cash paid during the period for interest                                                         $  27,175      $  20,950        $  17,860
Cash paid during the period for income taxes                                                     $  83,803      $  72,102        $  46,731
Property, plant and equipment acquired under capital lease obligations                           $  2,176       $  1,656         $  2,206

Reconciliation of Non-GAAP Financial Measures to GAAP Measures

To supplement the consolidated financial statements presented in accordance with GAAP, this press release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures:

-- Adjusted income from operations attributable to shareholders of Genpact Limited, or adjusted income from operations;

-- Adjusted income from operations margin;

-- Adjusted diluted earnings per share attributable to shareholders of Genpact Limited, or adjusted diluted earnings per share; and

-- Net revenues on a constant currency basis.

These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. Accordingly, these non-GAAP financial measures, the financial statements prepared in accordance with GAAP and the reconciliations of Genpact’s GAAP financial statements to such non-GAAP financial measures should be carefully evaluated.

Prior to July 2012, Genpact’s management used financial statements that excluded significant acquisition-related expenses, amortization of related acquired intangibles, and amortization of acquired intangibles at the company’s formation in 2004 for its internal management reporting, budgeting and decision making purposes, including comparing Genpact’s operating results to that of its competitors. However, considering Genpact’s frequent acquisitions of varying scale and size, and the difficulty in predicting expenses relating to acquisitions and the amortization of acquired intangibles thereof, since July 2012 Genpact’s management has used financial statements that exclude all acquisition-related expenses and amortization of acquired intangibles for its internal management reporting, budgeting and decision-making purposes, including comparing Genpact’s operating results to those of its competitors. For the same reasons, beginning in April 2016, Genpact’s management also excludes the impairment of acquired intangible assets from the financial statements it uses for internal management purposes.

Acquisition-related expenses are excluded in the period in which an acquisition is consummated. Genpact’s management also uses financial statements that exclude stock-based compensation expense. Because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use when adopting ASC 718 "Compensation-Stock Compensation," Genpact’s management believes that providing non-GAAP financial measures that exclude such expenses allows investors to make additional comparisons between Genpact’s operating results and those of other companies. Additionally, in its calculations of such non-GAAP financial measures, Genpact’s management has adjusted certain gains or losses attributable to equity-method investments because management views these interests as part of its ongoing operations and has excluded certain gains or losses attributable to redeemable non-controlling interest because management does not view these interests as part of its operations. For the purpose of calculating adjusted diluted earnings per share, the combined current and deferred tax effect is determined by multiplying each pre-tax adjustment by the applicable statutory income tax rate.

Genpact’s management provides information about revenues on a constant currency basis so that revenues may be viewed without the impact of foreign currency exchange rate fluctuations, thereby providing additional period-to-period comparisons of our true business performance. Revenues on a constant currency basis are calculated by restating current-period activity using the prior fiscal period’s foreign currency exchange rates adjusted for hedging gains/losses in such period.

Accordingly, Genpact believes that the presentation of adjusted income from operations, adjusted income from operations margin, adjusted diluted earnings per share and revenues on a constant currency basis, when read in conjunction with the Company’s reported results, can provide useful supplemental information to investors and management regarding financial and business trends relating to its financial condition and results of operations.

A limitation of using adjusted income from operations and adjusted income from operations margin versus income from operations and adjusted income from operations margin calculated in accordance with GAAP is that this non-GAAP financial measure excludes certain recurring costs, namely stock-based compensation and amortization of acquired intangibles. Management compensates for this limitation by providing specific information on the GAAP amounts excluded from adjusted income from operations and adjusted income from operations margin.

The following tables show the reconciliation of these adjusted financial measures from GAAP for the year and three months ended December 31, 2015 and 2016:

Reconciliation of Adjusted Income from Operations and Adjusted Income from Operations Margin
(Unaudited)
(In thousands)
                                                                                                     Year ended December 31,            Three months ended December 31,
                                                                                                     2015              2016             2015             2016
Income from operations                                                                               $     334,192     $     340,777    $     83,446     $     98,091
Add: Stock-based compensation                                                                              24,976            25,113           7,467            6,769
Add: Amortization and impairment of acquired intangible assets[10]                                         23,671            25,023           5,424            6,816
Add: Acquisition-related expenses                                                                          798               1,956            --               120
Add: Other income, net                                                                                     4,360             10,120           2,092            2,948
Less: Loss on equity-method investment activity, net                                                       (10,800)          (7,698)          (2,805)          (1,362)
Add: Net loss (income) attributable to non-controlling interest/redeemable non-controlling interest        --                2,137            --               232
Adjusted income from operations                                                                      $     377,197     $     397,428    $     95,624     $     113,614
Adjusted income from operations margin                                                                     15.3     %        15.5    %        14.8    %        16.7    %
Reconciliation of Adjusted Diluted EPS[11]
(Unaudited)
(Per share data)
                                                                         Year ended December 31,   Three months ended December 31,
                                                                         2015         2016         2015           2016
Diluted EPS                                                              $   1.09     $   1.28     $     0.30     $     0.38
Add: Stock-based compensation                                                0.11         0.12           0.03           0.03
Add: Amortization and impairment of acquired intangible assets7              0.11         0.12           0.03           0.03
Add: Acquisition-related expenses                                            --           0.01           --             --
Less: Tax impact on stock-based compensation                                 (0.03)       (0.03)         (0.01)         (0.01)
Less: Tax impact on amortization and impairment of acquired intangibles      (0.03)       (0.04)         (0.01)         (0.01)
Less: Tax impact on acquisition-related expenses                             --           --             --             --
Adjusted diluted EPS                                                     $   1.26     $   1.46     $     0.34     $     0.43

The following tables show the reconciliation of forward-looking adjusted financial measures from GAAP for the year ending December 31, 2017:

Reconciliation of Outlook for Adjusted Income from Operations Margin
(Unaudited)
                                                                          Year ending
                                                                          December 31, 2017
Income from operations margin                                             13.5%
Add: Estimated stock-based compensation                                   1.2%
Add: Estimated amortization and impairment of acquired intangible assets  0.9%
Add: Estimated acquisition-related expenses                               --
Add: Estimated other income (expense), net                                0.2%
Less: Estimated loss on equity-method investment activity, net            (0.1)%
Adjusted income from operations margin                                    15.7%
Reconciliation of Outlook for Adjusted Diluted EPS[12]
(Unaudited)
(Per share data)
                                                                                  Year ending December 31, 2017
                                                                                  Lower                Upper
Diluted EPS                                                                       $         1.32       $         1.36
Add: Estimated stock-based compensation                                           0.16                 0.16
Add: Estimated amortization and impairment of acquired intangible assets          0.13                 0.13
Add: Estimated acquisition-related expenses                                       --                   --
Less: Estimated tax impact on stock-based compensation                            (0.05)               (0.05)
Less: Estimated tax impact on amortization and impairment of acquired intangibles (0.04)               (0.04)
Less: Estimated tax impact on acquisition-related expenses                        --                   --
Adjusted diluted EPS                                                              $         1.53       $         1.57

Set forth below is a supplemental schedule depicting the reclassification of our 2016 revenue:

Unaudited
(In millions)
                  Quarter Ended March 31, 2016                                 Quarter Ended June 30, 2016                             Quarter Ended September 30, 2016                        Quarter Ended December 31, 2016                         Year ended December 31, 2016
                       Revenue     Reclassified  Impact of      Reclassified   Reported    Reclassified  Impact of      Reclassified   Revenue     Reclassified  Impact of      Reclassified   Reported    Reclassified  Impact of      Reclassified   Revenue       Reclassified  Impact of      Reclassified
                                   Revenue -     GE             Revenue        Revenue     Revenue -     GE             Revenue                    Revenue -     GE             Revenue        Revenue     Revenue -     GE             Revenue                      Revenue -     GE             Revenue
                                   PNM &         Divestitures                              PNM &         Divestitures                              PNM &         Divestitures                              PNM &         Divestitures                                PNM &         Divestitures
                                   Endeavour*    -                                         Endeavour*    -                                         Endeavour*    -                                         Endeavour*    -                                           Endeavour*    -
                                                 Reclassified                                            Reclassified                                            Reclassified                                            Reclassified                                              Reclassified
                                                 as of                                                   as of                                                   as of                                                   as of                                                     as of
                                                 1/1/2016                                                1/1/2016                                                1/1/2016                                                1/1/2016                                                  1/1/2016
Total Revenue
Global Client          $    502.3                $      24.1    $      526.4   $    521.4  --            $      23.6    $      545.0   $    543.2                $      23.9    $      567.0   $    576.2                $      24.3    $      600.5   $    2,143.1  --            $      95.8    $      2,238.9
GE                          107.4                       (24.1)         83.3         109.1  --                   (23.6)         85.5         105.6                       (23.9)         81.8         105.5                       (24.3)         81.2         427.6    --                   (95.8)         331.8
Total Revenue               609.7                       --             609.7        630.5  --                   --             630.5        648.8                       --             648.8        681.7                       --             681.7        2,570.8  --                   --             2,570.8
Total GC Revenue
GC BPO Revenue              406.3                       23.8           430.1        424.5  2.4                  23.2           450.1        445.1  4.6                  23.4           473.1        469.1  5.4                  23.6           498.1        1,745.1  12.4                 94.0           1,851.5
GC IT Revenue               96.0                        0.2            96.3         96.9   (2.4)                0.4            94.9         98.1   (4.6)                0.4            93.9         107.1  (5.4)                0.7            102.4        398.1    (12.4)               1.8            387.5
Total GC Revenue            502.3                       24.1           526.4        521.4  --                   23.6           545.0        543.2                       23.9           567.0        576.2                       24.3           600.5        2,143.1  --                   95.8           2,238.9
Total GE Revenue
GE BPO Revenue              82.8                        (23.8)         59.0         83.5                        (23.2)         60.4         80.8                        (23.4)         57.4         78.8                        (23.6)         55.2         326.0    --                   (94.0)         232.0
GE IT Revenue               24.6                        (0.2)          24.3         25.6                        (0.4)          25.2         24.8                        (0.4)          24.3         26.7                        (0.7)          26.0         101.6    --                   (1.8)          99.8
Total GE Revenue            107.4                       (24.1)         83.3         109.1                       (23.6)         85.5         105.6                       (23.9)         81.8         105.5                       (24.3)         81.2         427.6    --                   (95.8)         331.8
Total Revenue
Total BPO Revenue           489.1  --                   --             489.1        508.1  2.4                  --             510.5        525.9  4.6                  --             530.5        548.0  5.4                  --             553.3        2,071.1  12.4                 --             2,083.4
Total IT Revenue            120.6  --                   --             120.6        122.5  (2.4)                --             120.1        122.9  (4.6)                --             118.3        133.8  (5.4)                --             128.4        499.7    (12.4)               --             487.3
Total Revenue          $    609.7  --                   --      $      609.7   $    630.5  --                   --      $      630.5   $    648.8  --                   --      $      648.8   $    681.7  --                   --      $      681.7   $    2,570.8  --                   --      $      2,570.8
*                 We reclassified revenue from our 2016 acquisitions of Endeavour Software Technologies Private Limited and PNMSoft Ltd. as BPO rather than IT revenue to better align with the digital business process client solutions derived from these businesses.

[1] Revenue growth on a constant currency basis is a non-GAAP measure and is calculated by restating current-period activity using the prior fiscal period’s foreign currency exchange rates adjusted for hedging gains/losses in such period.[2] Adjusted diluted earnings per share is a non-GAAP measure. A reconciliation of GAAP diluted earnings per share and adjusted diluted earnings per share is attached to this release.[3] Adjusted income from operations and adjusted income from operations margin are non-GAAP measures. A reconciliation of GAAP income from operations and adjusted income from operations and a reconciliation of GAAP income from operations margin and adjusted income from operations margin are attached to this release.[4] New bookings represents the total contract value of new contracts and certain renewals, extensions and changes to existing contracts. Regular renewals of contracts with no change in scope are not counted as new bookings.[5] During the twelve months ended December 31, 2016, GE divested certain businesses that Genpact continues to serve. We reclassify such revenue as Global Client revenue after the end of the fiscal year rather than at the end of the fiscal quarter in which the divestitures occurred. For the year ended December 31, 2016, Global Client revenue would have been $2.21 billion if we had reclassified such revenues on a quarterly basis.[6] During the twelve months ended December 31, 2016, GE divested certain businesses that Genpact continues to serve. We reclassify such revenue as Global Client revenue after the end of the fiscal year rather than at the end of the fiscal quarter in which the divestitures occurred. For the year ended December 31, 2016, GE revenue would have been $358 million if we had reclassified such revenues on a quarterly basis.[7] During the twelve months ended December 31, 2016, GE divested certain businesses that Genpact continues to serve. Attached to this release is a schedule depicting the reclassification of revenues attributable to divested GE businesses from GE to Global Client revenue as if the divestitures had occurred on January 1, 2016 as well as the reclassification of revenues from our 2016 acquisitions of Endeavour Software Technologies Private Limited and PNMSoft Ltd. as BPO rather than IT revenue. The outlook for total 2017 revenue growth was determined using the reclassified numbers set forth on the schedule. [8] Adjusted income from operations margin is a non-GAAP measure. A reconciliation of the outlook for GAAP income from operations margin and adjusted income from operations margin is attached to this release.[9] Adjusted diluted earnings per share is a non-GAAP measure. A reconciliation of the outlook for GAAP diluted earnings per share and adjusted diluted earnings per share is attached to this release. [10] See "Reconciliation of Non-GAAP Financial Measures to GAAP Measures" above for a description of the amortization expenses included in this item.[11] Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.[12] Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/genpact-reports-full-year-and-fourth-quarter-2016-results-300405519.html

SOURCE Genpact Limited

https://rt.prnewswire.com/rt.gif?NewsItemId=NY09434&Transmission_Id=201702100700PR_NEWS_USPR_____NY09434&DateId=20170210



Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2017 StockSelector.com. All rights reserved.