LONDON--(BUSINESS WIRE)--Luxoft Holding Inc (NYSE:LXFT), a global IT service provider, today announced results for the three months and full fiscal year ended March 31, 2018.
Fourth Quarter FY2018 Highlights
- Revenue of $232.9 million, up 14.1% year-over-year and down 1.6% sequentially
- Adjusted EBITDA of $29.4 million and adjusted EBITDA margin of 12.6%, compared to $29.2 million and 14.3% in the year-ago quarter
- GAAP net income of $11.7 million, down 14.8% year-over-year
- Non-GAAP net income of $20.5 million, down 4.8% from $21.5 million in the year-ago quarter
- Diluted GAAP EPS of $0.34, down 15.0% from $0.40 in the year-ago quarter
- Non-GAAP diluted EPS of $0.59, down 6.3% from $0.63 in the year-ago quarter
- As of March 31, 2018, total number of employees was 12,898; Annual revenue per billable engineer was $84,923, up 10.5% from the prior year and down 0.5% sequentially
Full-Year 2018 Highlights
- Revenue of $906.8 million, up 15.4% year over year
- Adjusted EBITDA of $134.4 million and adjusted EBITDA margin of 14.8%, compared to $133.8 million and 17.0% in FY17
- GAAP net income of $57.0 million, down 9.0% year over year
- Non-GAAP net income of $96.1 million, down 2.3% from $98.3 million in FY17
- Diluted GAAP EPS of $1.66, compared to $1.84 in FY17
- Non-GAAP diluted EPS of $2.81, compared to $2.89 in FY17
Note: Reconciliations of non-GAAP to GAAP measures are included at the end of the release.
“Our fourth quarter results were largely in-line with our expectations and marked the end to a year of progress but also continued challenges," said Dmitry Loschinin, Luxoft’s CEO and President. “Despite the impact of certain troubled accounts, we continued to execute our strategic mandate of revenue diversification through increased penetration of attractive markets like Automotive and Digital Enterprise, while also identifying incremental value-driven opportunities. Excluding our Top-Two accounts, our consolidated revenue increased 20.3% and our Financial Services’ revenue increased 37.4%. This was our 13th consecutive quarter of over 20% annual growth in Financial Services, excluding Top-Two accounts, which speaks to the value our solutions and team bring to the broader market and the continued path for long-term growth. In addition, Automotive revenue increased 57.9% annually due to our successful execution and delivery of innovative technologies, solutions and experiences necessary to enable the mobility revolution.”
“Our full-year 2018 performance highlights our progress in transforming the business and revenue mix, strengthening our global delivery scale and executing initial steps to optimize our cost structure. We generated year-over-year revenue growth of 15.4%, or 33.1% ex-Top Two. We expanded our revenue contribution from High Potential Accounts (HPAs) by almost 49%, and delivered annual revenue growth of 42.9% from Automotive, 22.6% from Digital Enterprise and 6.3%, or 39.4% ex-Top Two, from Financial Services. This increasingly diversified top-line growth is supported by investments in our business, including delivery scale expansion, most notably in Asia Pacific (APAC) where we opened a Bangalore office, and in Europe where we are building a software house for a major German automotive manufacturer.”
“For the first quarter of fiscal 2019, we expect revenue and adjusted EBITDA margin to be in the range of $210 to $215 million and 8.5% to 9.5%, respectively. Based on project timing, seasonality, ramp down of the large Financial Services account and planned expenses related to SG&A optimization, we expect this to be our slowest quarter and for growth to accelerate as we move through fiscal 2019.”
Mr. Loschinin concluded, “Looking ahead, we will continue to execute our transformation strategy and align Luxoft with expanding growth opportunities and key emerging technology trends. We are focused on driving improved execution and strengthening our foundation for long-term sustainable growth. We believe we are taking the right steps and have the right strategy in place to deliver increasing value while also providing direct returns through our recently announced $60 Million share repurchase program.”
Fourth Quarter Key Operating Highlights
- Fourth quarter revenue in APAC and Europe grew 103.2% and 34.9%, respectively.
- Our expanding global presence and growth outside of Financial Services is meaningfully reducing client concentration. At year end, revenue by line of business was 57.3% Financial Services, 22.7% Digital Enterprise and 20.0% Automotive, which compares to the prior year of 56.8%, 28.8% and 14.4%, respectively.
- Our top two accounts amounted to 34.1% of revenue, representing a 3.4 percentage-point decrease over the prior year.
- Our top five accounts amounted to 46.8% of revenue, an annual 4.9 percentage-point decrease, and top ten accounts amounted to 56.3% of revenue, a 6.0 percentage point decrease.
Full-Year Key Operating Highlights
- Full-year revenue in North America increased 15.9% from the prior year while APAC and Europe revenue grew 60.3% and 25.6%, respectively.
- Our expanding global presence and growth outside of Financial Services is meaningfully reducing client concentration. For the year, revenue by line of business was 56.7% Financial Services, 25.8% Digital Enterprise and 17.5% Automotive, which compares to the prior year of 61.6%, 24.3% and 14.1%, respectively.
- Our top two accounts amounted to 34.7% of revenue, representing an 8.6 percentage point decrease over the prior year.
- Our top five accounts amounted to 47.4% of revenue, an annual 7.2 percentage point decrease, and top ten accounts amounted to 57.6% of revenue, an 8.4 percentage point decrease.
Conference Call Information
The Company will host a conference call to review the results on Thursday, May 24, 2018 at 8:00 a.m. ET. To participate, please dial 877-407-8293 or 201-689-8349 (outside the U.S.) or access the live webcast here.
A replay will be available two hours after the call at http://investor.luxoft.com or by dialing 877-660-6853 or 201-612-7415 (outside the U.S.) and entering the conference ID 13675016. The replay will be available until June 7, 2018.
About Luxoft
Luxoft (NYSE:LXFT) is a global IT service provider of innovative technology solutions that delivers measurable business outcomes to multinational companies. Its offerings encompass strategic consulting, custom software development services, and digital solution engineering. Luxoft enables companies to compete by leveraging its multi-industry expertise in the financial services, automotive, communications, and healthcare & life sciences sectors. Its managed delivery model is underpinned by a highly-educated workforce, allowing the Company to continuously innovate upwards on the technology stack to meet evolving digital challenges.
Luxoft has more than 12,900 employees across 42 cities in 21 countries within five continents, with its operating headquarters office in Zug, Switzerland. For more information, please visit the website.
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; non-GAAP diluted Earnings per share (EPS) and Free Cash Flow (FCF). EBITDA is calculated as earnings before interest, tax, depreciation and amortization, where interest includes unwinding of the discount rate for contingent liabilities. Prior year amounts were amended accordingly. 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. Free Cash Flow is calculated as operating cash flow less capital expenditure which consists of purchases of property, plant and equipment and intangible assets as defined in the cash flow statement.
We adjust our non-GAAP financial measures to exclude stock based compensation, because it is a non-cash expense. We also adjust our non-GAAP financial measures to exclude the change in fair value of contingent consideration, because we believe these expenses are not indicative of what we consider to be normal course of operations. Our non-GAAP financial measures are adjusted to exclude amortization of purchased intangible assets in order to allow management and investors to evaluate our results from operating activities as if these assets have been developed internally rather than acquired in a business combination. Finally, we adjust our non-GAAP financial measures to exclude acquisition-related costs, which comprise payments to consulting firms as well as fees paid upon successful completion of acquisition; as well as certain incentive payments for members of management of the acquired companies as provided for in the acquisition agreements. These payments are based on performance of the acquired businesses and are classified as part of management compensation rather than part of purchase consideration. These costs vary with the size and complexity of each acquisition and are generally inconsistent in amount and frequency, and therefore, we believe that they may not be indicative of the size and volume of future acquisition-related costs.
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 and 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 revenue 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, 2018 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 |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(In thousands of US dollars, except share amounts) |
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| As of March 31, 2018 | As of March 31, 2017 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 104,357 | $ | 109,558 | ||||
| Restricted cash, current | 70 | 4,000 | ||||||
| Trade accounts receivable, net of allowance for doubtful accounts of $1,232 at March 31, 2018 and $435 at March 31, 2017 | 186,991 | 144,862 | ||||||
| Unbilled revenue | 33,310 | 14,454 | ||||||
| Work-in-progress | 3,734 | 2,805 | ||||||
| Due from related parties | 1,272 | 1,084 | ||||||
| VAT and other taxes receivable | 4,082 | 1,732 | ||||||
| Advances issued | 1,777 | 2,740 | ||||||
| Other current assets | 8,041 | 5,224 | ||||||
| Total current assets | $ | 343,634 | $ | 286,459 | ||||
| Non-current assets | ||||||||
| Restricted cash, non-current | 2,775 | 1,399 | ||||||
| Deferred tax assets | 4,349 | 3,423 | ||||||
| Property and equipment, net | 52,739 | 49,571 | ||||||
| Intangible assets, net | 106,368 | 120,430 | ||||||
| Goodwill | 88,908 | 76,918 | ||||||
| Other non-current assets | 5,047 | 9,007 | ||||||
| Total non-current assets | $ | 260,186 | $ | 260,748 | ||||
| Total assets | $ | 603,820 | $ | 547,207 | ||||
| Liabilities and shareholders’ equity | ||||||||
| Current liabilities | ||||||||
| Short-term borrowings | $ | 856 | $ | 633 | ||||
| Accounts payable | 25,964 | 24,402 | ||||||
| Accrued liabilities | 49,593 | 38,513 | ||||||
| Deferred revenue | 4,105 | 3,815 | ||||||
| Due to related parties | 14 | 460 | ||||||
| Taxes payable | 22,916 | 21,283 | ||||||
| Payable on derivative financial instruments | 776 | 295 | ||||||
| Payable for acquisitions, current | 6,415 | 17,221 | ||||||
| Other current liabilities | 2,302 | 2,025 | ||||||
| Total current liabilities | $ | 112,941 | $ | 108,647 | ||||
| Deferred tax liability, non-current | 10,830 | 16,907 | ||||||
| Payable for acquisitions, non-current | 2,895 | 32,206 | ||||||
| Other non current liabilities | 7,205 | 2,629 | ||||||
| Total liabilities | $ | 133,871 | $ | 160,389 | ||||
| Shareholders’ equity | ||||||||
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Share capital (80,000,000 shares authorized; 34,063,981 issued and
outstanding with no par value as at March 31, 2018, |
— | — | ||||||
| Additional paid-in capital | 155,456 | 133,192 | ||||||
| Common stock held in treasury, at cost (61,874 shares as of March 31, 2018; 93,813 shares as of March 31, 2017) | (3,424 | ) | (6,028 | ) | ||||
| Retained earnings | 320,521 | 263,508 | ||||||
| Accumulated other comprehensive loss | (2,636 | ) | (3,886 | ) | ||||
| Total shareholders’ equity attributable to the Group | $ | 469,917 | $ | 386,786 | ||||
| Non-controlling interest | 32 | 32 | ||||||
| Total equity | $ | 469,949 | $ | 386,818 | ||||
| Total liabilities and equity | $ | 603,820 | $ | 547,207 | ||||
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LUXOFT HOLDING, INC |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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(In thousands of US dollars, except share and per share amounts) |
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| For the three months ended March 31, | For the year ended March 31, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Sales of services | $ | 232,881 | $ | 204,131 | $ | 906,766 | $ | 785,561 | ||||||||
| Operating expenses | ||||||||||||||||
| Cost of services (exclusive of depreciation and amortization) | 148,638 | 129,632 | 567,874 | 474,980 | ||||||||||||
| Selling, general and administrative expenses | 61,492 | 56,193 | 241,239 | 213,723 | ||||||||||||
| Depreciation and amortization | 10,978 | 10,260 | 42,673 | 34,847 | ||||||||||||
| Gain from revaluation of contingent liability | (7,320 | ) | (9,434 | ) | (13,340 | ) | (12,021 | ) | ||||||||
| Impairment loss | 8,241 | 5,287 | 8,241 | 5,287 | ||||||||||||
| Operating income | 10,852 | 12,193 | 60,079 | 68,745 | ||||||||||||
| Other income and expenses | ||||||||||||||||
| Interest income/ (loss), net | 97 | (91 | ) | 173 | (81 | ) | ||||||||||
| Unwinding of discount rate for contingent liability, gain/ (loss) | 71 | (766 | ) | (1,215 | ) | (1,990 | ) | |||||||||
| Other gain, net | 893 | 755 | 2,773 | 5,119 | ||||||||||||
| Gain/ (loss) from derivative financial instruments | (1,937 | ) | — | (1,791 | ) | 1,314 | ||||||||||
| Net foreign exchange gain/ (loss) | 1,466 | 889 | 2,767 | (2,604 | ) | |||||||||||
| Income before income taxes | 11,442 | 12,980 | 62,786 | 70,503 | ||||||||||||
| Income tax (expense)/gain | 264 | 755 | (5,773 | ) | (7,865 | ) | ||||||||||
| Net income | $ | 11,706 | $ | 13,735 | $ | 57,013 | $ | 62,638 | ||||||||
| Net income attributable to the non-controlling interest | — | — | — | — | ||||||||||||
| Net income attributable to the Group | $ | 11,706 | $ | 13,735 | $ | 57,013 | $ | 62,638 | ||||||||
| Basic EPS per Class A and Class B ordinary share | ||||||||||||||||
| Net income attributable to the Group per ordinary share | $ | 0.34 | $ | 0.41 | $ | 1.69 | $ | 1.88 | ||||||||
| Weighted average ordinary shares outstanding | 33,981,491 | 33,493,847 | 33,703,069 | 33,280,771 | ||||||||||||
| Diluted EPS per Class A and Class B ordinary share | ||||||||||||||||
| Diluted net income attributable to the Group per ordinary share | $ | 0.34 | $ | 0.40 | $ | 1.66 | $ | 1.84 | ||||||||
| Diluted weighted average ordinary shares outstanding | 34,411,622 | 34,132,929 | 34,247,805 | 34,000,674 | ||||||||||||
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LUXOFT HOLDING, INC |
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
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(In thousands of US dollars) |
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For the three months
ended March 31, |
For the year ended March 31, | ||||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||
| Net income | $ | 11,706 | $ | 13,735 | $ | 57,013 | $ | 62,638 | |||||||||||
| Other comprehensive income (loss), net of tax | |||||||||||||||||||
| Gains/(losses) on derivative instruments, net of tax effects of 3, (27) and (65), 201 | 120 | (840 | ) | (561 | ) | 1,418 | |||||||||||||
| Unrealized gains, net of tax effects of (45), 69 and (45), 69 | (454 | ) | 580 | (454 | ) | 580 | |||||||||||||
| Translation adjustments with no tax effects | 586 | 109 | 2,265 | (1,903 | ) | ||||||||||||||
| Total other comprehensive income | 252 | (151 | ) | 1,250 | 95 | ||||||||||||||
| Comprehensive income | $ | 11,958 | $ | 13,584 | $ | 58,263 | $ | 62,733 | |||||||||||
| Comprehensive income (loss) attributable to the non-controlling interest | — |
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— |
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— |
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— | |||||||||||
| Comprehensive income attributable to the Group | $ | 11,958 | $ | 13,584 | $ | 58,263 | $ | 62,733 | |||||||||||
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LUXOFT HOLDING, INC |
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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW |
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(In thousands of US dollars) |
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For the year ended
March 31, |
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| 2018 | 2017 | |||||||
| (Unaudited) | ||||||||
| Operating activities | ||||||||
| Net income | $ | 57,013 | $ | 62,638 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 42,673 | 34,847 | ||||||
| Deferred tax benefit | (4,140 | ) | (3,395 | ) | ||||
| (Gain)/ loss from derivative financial instruments | 1,791 | (1,314 | ) | |||||
| Net foreign exchange (gain)/ loss | (2,767 | ) | 2,604 | |||||
| Provision for doubtful accounts | 941 | 380 | ||||||
| Gain from revaluation of contingent liability | (13,340 | ) | (12,021 | ) | ||||
| Unwinding of discount rate for contingent liability, loss | 1,215 | 1,990 | ||||||
| Share-based compensation | 28,968 | 28,984 | ||||||
| Impairment loss | 8,241 | 5,287 | ||||||
| Other | 630 | — | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Trade accounts receivable and unbilled revenue | (47,449 | ) | 145 | |||||
| Work-in-progress | (928 | ) | (1,210 | ) | ||||
| Due to and from related parties | (634 | ) | 1,001 | |||||
| Accounts payable and accrued liabilities | 2,634 | 8,879 | ||||||
| Deferred revenue | 282 | (1,761 | ) | |||||
| Changes in other assets and liabilities | (123 | ) | (5,027 | ) | ||||
| Net cash provided by operating activities | 75,007 | 122,027 | ||||||
| Investing activities | ||||||||
| Purchases of property and equipment | (20,585 | ) | (19,614 | ) | ||||
| Purchases of intangible assets | (4,593 | ) | (4,182 | ) | ||||
| Acquisitions, net of cash acquired | (34,155 | ) | (77,672 | ) | ||||
| Restricted cash | 4,125 | (5,000 | ) | |||||
| Net cash used in investing activities | (55,208 | ) | (106,468 | ) | ||||
| Financing activities | ||||||||
| Net repayment of short-term borrowings | (785 | ) | (5,897 | ) | ||||
| Acquisition of business, deferred consideration | (19,258 | ) | (4,577 | ) | ||||
| Repurchases of common stock | (5,547 | ) | (3,611 | ) | ||||
| Repayment of capital lease obligations | (163 | ) | (133 | ) | ||||
| Net cash used in financing activities | (25,753 | ) | (14,218 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 753 | (328 | ) | |||||
| Net decrease in cash and cash equivalents | (5,201 | ) | 1,013 | |||||
| Cash and cash equivalents at beginning of year | 109,558 | 108,545 | ||||||
| Cash and cash equivalents at end of period | $ | 104,357 | $ | 109,558 | ||||
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Luxoft Holding, Inc |
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Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Measures (Unaudited) |
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(In thousands of US dollars, except per share amounts and percentages) |
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| Three months ended March 31, | Year ended March 31, | |||||||||||||||||||||||||
| 2018 | 2018 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||||||||
| GAAP | Adjustments | Non-GAAP | GAAP |
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Adjustments | Non-GAAP | ||||||||||||||||||||
| Operating income | 10,852 | 11,669 | (a) | 22,521 | 60,079 | 45,137 | (a) | 105,216 | ||||||||||||||||||
| Operating margin | 4.7 | % | 5.0 | % | 9.7 | % | 6.6 | % | 5.0 | % | 11.6 | % | ||||||||||||||
| Net income | 11,706 | 8,765 | (b) | 20,471 | 57,013 | 39,085 | (b) | 96,098 | ||||||||||||||||||
| Diluted earnings per share | $ | 0.34 | $ | 0.59 | $ | 1.66 | $ | 2.81 | ||||||||||||||||||
| Three months ended March 31, | Year ended March 31, | |||||||||||||||||||||||||
| 2017 | 2017 | 2017 | 2017 | 2017 | 2017 | |||||||||||||||||||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||||||||
| Operating income | 12,193 | 9,112 | (a) | 21,305 | 68,745 | 38,727 | (a) | 107,472 | ||||||||||||||||||
| Operating margin | 6.0 | % | 4.5 | % | 10.5 | % | 8.8 | % | 4.9 | % | 13.7 | % | ||||||||||||||
| Net income | 13,735 | 7,760 | (b) | 21,495 | 62,638 | 35,673 | (b) | 98,311 | ||||||||||||||||||
| Diluted earnings per share | $ | 0.40 | $ | 0.63 | $ | 1.84 | $ | 2.89 | ||||||||||||||||||
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Luxoft Holding, Inc |
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Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Measures (Unaudited) |
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(In thousands of US dollars, except per share amounts and percentages) |
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Three months
ended March 31, |
Year ended March 31, |
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| (a) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Adjustments to GAAP operating income | ||||||||||||||||
| Stock-based compensation expense | $ | 6,028 | $ | 7,470 | $ | 28,968 | $ | 28,984 | ||||||||
| Amortization of purchased Intangible assets | 4,524 | 3,994 | 17,265 | 12,353 | ||||||||||||
| Gain from revaluation of contingent liability | (7,320 | ) | (9,434 | ) | (13,340 | ) | (12,021 | ) | ||||||||
| Acquisition related costs | 196 | 1,795 | 4,003 | 4,124 | ||||||||||||
| Impairment loss | 8,241 | 5,287 | 8,241 | 5,287 | ||||||||||||
| Total Adjustments to GAAP income from operations: | $ | 11,669 | $ | 9,112 | $ | 45,137 | $ | 38,727 | ||||||||
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Three Months Ended March 31, |
Year ended March 31, |
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| (b) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Adjustments to GAAP net income | ||||||||||||||||
| Stock-based compensation expense | $ | 6,028 | $ | 7,470 | $ | 28,968 | $ | 28,984 | ||||||||
| Amortization of purchased Intangible assets | 4,524 | 3,994 | 17,265 | 12,353 | ||||||||||||
| Gain from revaluation of contingent liability and unwinding of discount rate for contingent liability | (7,391 | ) | (8,668 | ) | (12,125 | ) | (10,031 | ) | ||||||||
| Acquisition related costs | 196 | 1,795 | 4,003 | 4,124 | ||||||||||||
| Impairment loss | 8,241 | 5,287 | 8,241 | 5,287 | ||||||||||||
| Tax effect of the adjustments | (2,833 | ) | (2,118 | ) | (7,267 | ) | (5,044 | ) | ||||||||
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Total Adjustments to GAAP net income: |
$ | 8,765 | $ | 7,760 | $ | 39,085 | $ | 35,673 | ||||||||
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Three Months Ended March 31, |
Year Ended March 31, |
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| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Net income | $ | 11,706 | $ | 13,735 | $ | 57,013 | $ | 62,638 | ||||||||
| Adjusted for: |
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| Interest Income | (97 | ) | 91 | (173 | ) | 81 | ||||||||||
| Unwinding of discount rate for contingent liability, loss | (71 | ) | 766 | 1,215 | 1,990 | |||||||||||
| Income tax | (264 | ) | (755 | ) | 5,773 | 7,865 | ||||||||||
| Depreciation and Amortization | 10,978 | 10,260 | 42,673 | 34,847 | ||||||||||||
| EBITDA | $ | 22,252 | $ | 24,097 | 106,501 | 107,421 | ||||||||||
| Adjusted for |
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| Stock based compensation | 6,028 | 7,470 | 28,968 | 28,984 | ||||||||||||
| Gain from revaluation of contingent liability | (7,320 | ) | (9,434 | ) | (13,340 | ) | (12,021 | ) | ||||||||
| Acquisition related costs | 196 | 1,795 | 4,003 | 4,124 | ||||||||||||
| Impairment loss | 8,241 | 5,287 | 8,241 | 5,287 | ||||||||||||
| Adjusted EBITDA | $ | 29,397 | $ | 29,215 | $ | 134,373 | $ | 133,795 | ||||||||
|
Luxoft Holding, Inc |
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|
Schedule of supplemental information |
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|
(Unaudited) |
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|
(In thousands; except percentages) |
|||||||||||||||||||
| Revenue for the three Months Ended March 31, | |||||||||||||||||||
| 2018 | 2017 | ||||||||||||||||||
| Client location | Amount | % of sales | Amount | % of sales | |||||||||||||||
| North America | $ | 71,500 | 30.7 | % | $ | 78,546 | 38.5 | % | |||||||||||
| Europe (excl. U.K.) | 84,717 | 36.4 | % | 62,784 | 30.8 | % | |||||||||||||
| U.K. | 47,285 | 20.3 | % | 44,976 | 22.0 | % | |||||||||||||
| Russia | 13,607 | 5.8 | % | 9,272 | 4.5 | % | |||||||||||||
| APAC | 13,135 | 5.6 | % | 6,465 | 3.2 | % | |||||||||||||
| Other | 2,637 | 1.2 | % | 2,088 | 1.0 | % | |||||||||||||
| Total | $ | 232,881 | 100.0 | % | $ | 204,131 | 100.0 | % | |||||||||||
|
Revenue for the Year Ended March 31, |
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| 2018 | 2017 | ||||||||||||||||||
| Client location | Amount | % of sales | Amount | % of sales | |||||||||||||||
| North America | $ | 308,770 | 34.1 | % | $ | 266,429 | 33.9 | % | |||||||||||
| Europe (excl. U.K.) | 295,777 | 32.6 | % | 235,522 | 30.0 | % | |||||||||||||
| U.K. | 200,024 | 22.1 | % | 213,547 | 27.2 | % | |||||||||||||
| Russia | 52,200 | 5.8 | % | 36,905 | 4.7 | % | |||||||||||||
| APAC | 42,618 | 4.7 | % | 26,585 | 3.4 | % | |||||||||||||
| Other | 7,377 | 0.7 | % | 6,573 | 0.8 | % | |||||||||||||
| Total | $ | 906,766 | 100.0 | % | $ | 785,561 | 100.0 | % | |||||||||||
|
Revenue for the three Months Ended March 31, |
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| 2018 | 2017 | ||||||||||||||||||
| Industry vertical | Amount | % of sales | Amount | % of sales | |||||||||||||||
| Financial Services | $ | 133,550 | 57.3 | % | $ | 115,964 | 56.8 | % | |||||||||||
| Digital Enterprise | 52,834 | 22.7 | % | 58,724 | 28.8 | % | |||||||||||||
| Automotive | 46,497 | 20.0 | % | 29,443 | 14.4 | % | |||||||||||||
| Total | $ | 232,881 | 100.0 | % | $ | 204,131 | 100.0 | % | |||||||||||
|
Revenue for the Year Ended March 31, |
|||||||||||||||||||
| 2018 | 2017 | ||||||||||||||||||
| Industry vertical | Amount | % of sales | Amount | % of sales | |||||||||||||||
| Financial Services | $ | 514,313 | 56.7 | % | $ | 483,801 | 61.6 | % | |||||||||||
| Digital Enterprise | 234,023 | 25.8 | % | 190,921 | 24.3 | % | |||||||||||||
| Automotive | 158,430 | 17.5 | % | 110,839 | 14.1 | % | |||||||||||||
| Total | $ | 906,766 | 100.0 | % | $ | 785,561 | 100.0 | % | |||||||||||
|
LUXOFT HOLDING, INC. |
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|
Reconciliations of Non-GAAP Forward-looking Financial Measures |
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|
to Comparable GAAP Forward-looking Measures |
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|
(Unaudited) |
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|
(In thousands of US dollars, except share, per share amounts and percentages) |
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|
Three Months Ended
June 30, 2018 |
|||
| Revenue | $ | 210,000 | |
| Net income | $ | 992 | |
| Adjusted for: | |||
| Interest Income | (20 | ) | |
| Unwinding of discount rate for contingent liability, loss/ (gain) | 30 | ||
| Income tax | 260 | ||
| Depreciation and Amortization | 9,933 | ||
| EBITDA | $ | 11,195 | |
| Adjusted for: | |||
| Stock based compensation | 5,977 | ||
| Acquisition related costs | 779 | ||
| Adjusted EBITDA | $ | 17,950 | |
| Adjusted EBITDA margin | 8.5 | % | |
| Net income | $ | 992 | |
| Adjusted for: |
|
||
| Stock-based compensation expense | 5,977 | ||
| Amortization of purchased Intangible assets | 4,063 | ||
| Unwinding of discount rate for contingent liability, loss/ (gain) | 30 | ||
| Acquisition related costs | 779 | ||
| Tax effect of the adjustments | (1,410 | ) | |
| Total adjustments to Net Income | $ | 9,438 | |
| Adjusted Net Income | $ | 10,430 | |
| Diluted weighted average ordinary shares outstanding | 34,206,596 | ||
| Adjusted EPS | $ | 0.30 | |
|
Three Months Ended June 30, 2018 |
|||||||||||
| GAAP | Adjustments | Non-GAAP | |||||||||
| Net income | $ | 992 | $ | 9,438 | $ | 10,430 | |||||
| Diluted earnings per share | $ | 0.03 | $ | 0.30 | |||||||