– моментальные уведомления о рынке акций
– моментальные уведомления о рынке акций
NEWTOWN, Pa., May 5, 2022 /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, today reported results for the first quarter ended March 31, 2022.
"The Russian invasion of Ukraine has changed the world and EPAM. We stand with Ukraine and continue to support our employees and their families while enabling broader assistance initiatives in the Country," said Arkadiy Dobkin, CEO & President, EPAM. "Our successful track record in adapting the Company to global disruptions gives me confidence that despite the deeply personal impact the war has had on EPAM, we will execute through this near-term challenge, and emerge as a more diverse, more resilient and more relevant global company."
EPAM's strategy, which centers on adapting, growing and driving value across a broader and more engaged ecosystem of people, customers, and partners, continues to guide the Company. EPAM has accelerated elements of this strategy focusing on diversification of its global delivery platform, by scaling existing and new geographic locations, while continuing to add breadth and depth of talent and capabilities.
This accelerated diversification of the Company's global delivery capability will help support both the near-term repositioning of customer projects from the impacted region, and future growth beyond 2022.
First Quarter 2022 Highlights
Cash Flow and Other Metrics
Second Quarter Outlook
EPAM expects the following for the second quarter:
Conference Call Information
EPAM will host a conference call to discuss the results on Thursday, May 5, 2022, at 8:00 a.m. EDT. The live conference call will be available by dialing +1 (844) 707-0662 or +1 (703) 318-2250 (outside of the U.S.). A webcast of the conference call can be accessed at the Investor Relations section of the Company's website at https://investors.epam.com. A replay will be available approximately one hour after the call by dialing +1 (855) 859-2056 or +1 (404) 537-3406 (outside of the U.S.) and entering the conference ID 1698691. The replay will be available until May 12, 2022.
About EPAM Systems
Since 1993, EPAM Systems, Inc. (NYSE: EPAM) has leveraged its advanced software engineering heritage to become the foremost global digital transformation services provider – leading the industry in digital and physical product development and digital platform engineering services. Through its innovative strategy; integrated advisory, consulting, and design capabilities; and unique 'Engineering DNA,' EPAM's globally deployed hybrid teams help make the future real for clients and communities around the world by powering better enterprise, education and health platforms that connect people, optimize experiences, and improve people's lives. In 2021, EPAM was added to the S&P 500 and included among the list of Forbes Global 2000 companies.
Selected by Newsweek as a 2021 Most Loved Workplace, EPAM's global multi-disciplinary teams serve customers in more than 45 countries across five continents. As a recognized leader, EPAM is listed among the top 15 companies in Information Technology Services on the Fortune 1000 and ranked as the top IT services company on Fortune's 100 Fastest-Growing Companies list for the last three consecutive years. EPAM is also listed among Ad Age's top 25 World's Largest Agency Companies for three consecutive years, and Consulting Magazine named EPAM Continuum a top 20 Fastest-Growing Firm.
Learn more at www.epam.com and follow EPAM on Twitter and LinkedIn.
Non-GAAP Financial Measures
EPAM supplements results reported in accordance with United States generally accepted accounting principles, referred to as GAAP, with non-GAAP financial measures. Management believes these measures help illustrate underlying trends in EPAM's business and uses the measures to establish budgets and operational goals, communicate internally and externally, for managing EPAM's business and evaluating its performance. Management also believes these measures help investors compare EPAM's operating performance with its results in prior periods. EPAM anticipates that it will continue to report both GAAP and certain non-GAAP financial measures in its financial results, including non-GAAP results that exclude stock-based compensation expenses, acquisition-related costs including amortization of intangible assets, impairment of assets, expenses associated with EPAM's humanitarian commitment to its professionals in Ukraine, unbilled business continuity resources resulting from Russia's invasion of Ukraine, costs associated with the geographic repositioning efforts in Russia and Belarus, certain other one-time charges and benefits, changes in fair value of contingent consideration, foreign exchange gains and losses, excess tax benefits related to stock-based compensation, and the related effect on income taxes of the pre-tax adjustments. Management also compares operating results on a basis of "constant currency," which is also a non-GAAP financial measure. This measure excludes the effect of foreign currency exchange rate fluctuations by translating the current period revenues and expenses into U.S. dollars at the weighted average exchange rates of the prior period of comparison. Because EPAM's reported non-GAAP financial measures are not calculated in accordance with GAAP, these measures are not comparable to GAAP and may not be comparable to similarly described non-GAAP measures reported by other companies within EPAM's industry. Consequently, EPAM's non-GAAP financial measures should not be evaluated in isolation or supplant comparable GAAP measures, but rather, should be considered together with the information in EPAM's consolidated financial statements, which are prepared in accordance with GAAP.
Forward-Looking Statements
This press release includes estimates and statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our business and operations. These statements may include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. Those future events and trends may relate to, among other things, developments relating to on-going hostilities in Ukraine, political and civil unrest or military action in the geographies where we conduct business and operate, developments relating to the on-going COVID-19 pandemic, and the effect that they may have on our revenues, operations, access to capital, profitability and customer demand. Other factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the risk factors discussed in the Company's most recent Annual Report on Form 10-K and the factors discussed in the Company's Quarterly Report on Form 10-Q, filed on or after the date of this press release, particularly under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" and other filings with the Securities and Exchange Commission. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to us. EPAM undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.
EPAM SYSTEMS, INC. AND SUBSIDIARIES |
||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||
(Unaudited) |
||||||
(In thousands, except per share data) |
||||||
Three Months Ended March 31, |
||||||
2022 |
2021 |
|||||
Revenues |
$ 1,171,614 |
$ 780,775 |
||||
Operating expenses: |
||||||
Cost of revenues (exclusive of depreciation and amortization) |
780,836 |
519,328 |
||||
Selling, general and administrative expenses |
237,277 |
136,389 |
||||
Depreciation and amortization expense |
24,259 |
17,807 |
||||
Income from operations |
129,242 |
107,251 |
||||
Interest and other (loss)/income, net |
(165) |
5,374 |
||||
Foreign exchange (loss)/gain |
(22,785) |
2,299 |
||||
Income before provision for income taxes |
106,292 |
114,924 |
||||
Provision for income taxes |
16,573 |
5,878 |
||||
Net income |
$ 89,719 |
$ 109,046 |
||||
Net income per share: |
||||||
Basic |
$ 1.58 |
$ 1.94 |
||||
Diluted |
$ 1.52 |
$ 1.86 |
||||
Shares used in calculation of net income per share: |
||||||
Basic |
56,915 |
56,170 |
||||
Diluted |
58,941 |
58,778 |
||||
EPAM SYSTEMS, INC. AND SUBSIDIARIES |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(Unaudited) |
||||||
(In thousands, except par value) |
||||||
As of March 31, 2022 |
As of December 31, 2021 |
|||||
Assets |
||||||
Current assets |
||||||
Cash and cash equivalents |
$ 1,276,461 |
$ 1,446,625 |
||||
Trade receivables and contract assets, net of allowance of $14,229 and $5,521, respectively |
901,260 |
768,928 |
||||
Prepaid and other current assets |
89,032 |
53,927 |
||||
Total current assets |
2,266,753 |
2,269,480 |
||||
Property and equipment, net |
219,639 |
236,214 |
||||
Operating lease right-of-use assets, net |
175,514 |
184,841 |
||||
Intangible assets, net |
97,569 |
101,143 |
||||
Goodwill |
534,136 |
530,723 |
||||
Deferred tax assets |
161,302 |
143,928 |
||||
Other noncurrent assets |
52,657 |
56,898 |
||||
Total assets |
$ 3,507,570 |
$ 3,523,227 |
||||
Liabilities |
||||||
Current liabilities |
||||||
Accounts payable |
$ 19,406 |
$ 24,847 |
||||
Accrued compensation and benefits expenses |
408,789 |
502,997 |
||||
Accrued expenses and other current liabilities |
177,872 |
142,014 |
||||
Short-term debt |
9,900 |
16,018 |
||||
Income taxes payable, current |
20,264 |
27,440 |
||||
Operating lease liabilities, current |
47,021 |
50,104 |
||||
Total current liabilities |
683,252 |
763,420 |
||||
Long-term debt |
30,550 |
30,234 |
||||
Income taxes payable, noncurrent |
44,103 |
42,454 |
||||
Operating lease liabilities, noncurrent |
140,814 |
142,802 |
||||
Other noncurrent liabilities |
55,095 |
48,480 |
||||
Total liabilities |
953,814 |
1,027,390 |
||||
Commitments and contingencies |
||||||
Stockholders' equity |
||||||
Common stock, $0.001 par value; 160,000 shares authorized; 57,153 and 56,868 |
57 |
57 |
||||
Additional paid-in capital |
719,122 |
711,912 |
||||
Retained earnings |
1,919,251 |
1,829,532 |
||||
Treasury stock |
(177) |
(177) |
||||
Accumulated other comprehensive loss |
(86,150) |
(54,207) |
||||
Total EPAM Systems Inc. stockholders' equity |
2,552,103 |
2,487,117 |
||||
Noncontrolling interest in consolidated subsidiaries |
1,653 |
8,720 |
||||
Total stockholders' equity |
$ 2,553,756 |
$ 2,495,837 |
||||
Total liabilities and stockholders' equity |
$ 3,507,570 |
$ 3,523,227 |
||||
EPAM SYSTEMS, INC. AND SUBSIDIARIES |
||
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures |
||
(Unaudited) |
||
(In thousands, except percent and per share amounts) |
||
Reconciliation of revenue growth as reported on a GAAP basis to revenue growth on a constant currency basis is |
||
Three Months Ended March 31, 2022 |
||
Revenue growth as reported |
50.1 % |
|
Foreign exchange rates impact |
2.9 % |
|
Revenue growth on a constant currency basis(1) |
53.0 % |
|
(1) |
Constant currency revenue results are calculated by translating current period revenues in local currency into U.S. |
Reconciliation of various income statement amounts from GAAP to non-GAAP for the three months ended March 31, 2022 and 2021: |
Three Months Ended March 31, 2022 |
|||||
GAAP |
Adjustments |
Non-GAAP |
|||
Cost of revenues (exclusive of depreciation and amortization)(2) |
$ 780,836 |
$ 54 |
$ 780,890 |
||
Selling, general and administrative expenses(3) |
$ 237,277 |
$ (54,254) |
$ 183,023 |
||
Income from operations(4) |
$ 129,242 |
$ 59,444 |
$ 188,686 |
||
Operating margin |
11.0 % |
5.1 % |
16.1 % |
||
Net income(5) |
$ 89,719 |
$ 57,324 |
$ 147,043 |
||
Diluted earnings per share |
$ 1.52 |
$ 2.49 |
|||
Three Months Ended March 31, 2021 |
|||||
GAAP |
Adjustments |
Non-GAAP |
|||
Cost of revenues (exclusive of depreciation and amortization)(2) |
$ 519,328 |
$ (11,117) |
$ 508,211 |
||
Selling, general and administrative expenses(3) |
$ 136,389 |
$ (15,378) |
$ 121,011 |
||
Income from operations(4) |
$ 107,251 |
$ 29,635 |
$ 136,886 |
||
Operating margin |
13.7 % |
3.8 % |
17.5 % |
||
Net income(5) |
$ 109,046 |
$ (2,846) |
$ 106,200 |
||
Diluted earnings per share |
$ 1.86 |
$ 1.81 |
|||
Items (2) through (5) above are detailed in the table below with the specific cross-reference noted in the appropriate item. |
Three Months Ended March 31, |
|||
2022 |
2021 |
||
Stock-based compensation (benefit)/ expense |
$ (424) |
$ 11,117 |
|
Humanitarian support in Ukraine (a) |
19,156 |
— |
|
Unbilled business continuity resources (b) |
2,570 |
— |
|
Discretionary compensation (c) |
(21,356) |
— |
|
Total adjustments to GAAP cost of revenues(2) |
(54) |
11,117 |
|
Stock-based compensation expenses |
7,536 |
13,436 |
|
Other acquisition-related expenses |
579 |
1,933 |
|
One-time charges |
1,363 |
9 |
|
Humanitarian support in Ukraine (a) |
6,500 |
— |
|
Geographic repositioning (d) |
18,706 |
— |
|
Russia long-lived asset impairment charges (e) |
19,570 |
— |
|
Total adjustments to GAAP selling, general and administrative expenses(3) |
54,254 |
15,378 |
|
Amortization of acquired intangible assets |
5,244 |
3,140 |
|
Total adjustments to GAAP income from operations(4) |
59,444 |
29,635 |
|
Change in fair value of contingent consideration included in Interest and other income, net |
3,373 |
(4,944) |
|
Impairment of financial asset |
1,300 |
— |
|
Foreign exchange loss/(gain) |
22,785 |
(2,299) |
|
Provision for income taxes: |
|||
Tax effect on non-GAAP adjustments |
(16,469) |
(3,734) |
|
Excess tax benefits related to stock-based compensation |
(13,109) |
(21,504) |
|
Total adjustments to GAAP net income(5) |
$ 57,324 |
$ (2,846) |
|
(a) Humanitarian support in Ukraine includes expenses related to EPAM's $100 million humanitarian commitment in response to Russia's invasion of Ukraine to support EPAM professionals and their families in and displaced from Ukraine. These expenses are incremental to those expenses incurred prior to the crisis, clearly separable from normal operations, and not expected to recur once the crisis has subsided and operations return to normal. |
(b) Given the uncertainty in the region introduced by Russia's invasion of Ukraine, EPAM has assigned delivery employees in locations outside of the region to ensure the continuity of delivery for customers who have substantial delivery exposure to Ukraine or other delivery concerns resulting from the invasion. These employees are not billed to clients and operate largely in a standby or backup capacity. These expenses are incremental to those expenses incurred prior to the crisis, clearly separable from normal operations, and not expected to recur once the crisis has subsided and operations return to normal. |
(c) Discretionary compensation includes the reduction of previously accrued amounts associated with the Company's variable compensation program for the year ended December 31, 2021. This adjustment was made in response to Russia's invasion of Ukraine and is not expected to recur in the future. |
(d) Geographic repositioning includes expenses associated with the Company's accelerated efforts to relocate employees in Russia and Belarus to other countries and includes the cost of accommodations, travel and food. These expenses are incremental to those expenses incurred prior to the crisis, clearly separable from normal operations, and not expected to recur once the crisis has subsided and operations return to normal. |
(e) As a result of the Company's decision to no longer serve customers in Russia, the Company incurred impairment charges for long-lived assets in Russia including charges of $15.1 million associated with property and equipment, $3.8 million associated with right-of-use assets and $0.7 million associated with goodwill. Consistent with the Company's historical non-GAAP policy, impairment charges have been excluded from non-GAAP results as these are one-time and unusual in nature. |
EPAM SYSTEMS, INC. AND SUBSIDIARIES |
||
Reconciliations of Guidance Non-GAAP Financial Measures to Comparable GAAP Financial Measures |
||
(Unaudited) |
||
The below guidance constitutes forward-looking statements within the meaning of the federal securities laws and is |
||
Reconciliation of expected revenue growth on a GAAP basis to expected revenue growth on a constant currency basis is |
||
Second Quarter 2022 |
||
Revenue growth (at least) |
29 % |
|
Foreign exchange rates impact |
5 % |
|
Revenue growth on a constant currency basis (at least) (6) |
34 % |
|
(6) |
Constant currency revenue results are calculated by translating expected revenues in local currency into U.S. dollars at the weighted average exchange rates of the comparable prior period. |
Reconciliation of expected GAAP to non-GAAP income from operations as a percentage of revenues is presented in the table below: |
Second Quarter 2022 |
|
GAAP income from operations as a percentage of revenues |
3% to 5% |
Stock-based compensation expenses |
2.4 % |
Included in cost of revenues (exclusive of depreciation and amortization) |
1.1 % |
Included in selling, general and administrative expenses |
1.3 % |
Humanitarian support in Ukraine (a) |
1.1 % |
Unbilled business continuity resources (b) |
0.7 % |
Geographic repositioning (d) |
0.9 % |
One-time charges |
1.3 % |
Other acquisition-related expenses |
0.1 % |
Amortization of purchased intangible assets |
0.5 % |
Non-GAAP income from operations as a percentage of revenues |
10% to 12% |
Reconciliation of expected GAAP to non-GAAP effective tax rate is presented in the table below: |
Second Quarter 2022 |
|
GAAP effective tax rate (approximately) |
19 % |
Tax effect on non-GAAP adjustments |
3.2 % |
Excess tax benefits related to stock-based compensation |
0.8 % |
Non-GAAP effective tax rate (approximately) |
23 % |
Reconciliation of expected GAAP to non-GAAP diluted earnings per share is presented in the table below: |
Second Quarter 2022 |
|
GAAP diluted earnings per share (at least) |
$ 0.73 |
Stock-based compensation expenses |
0.46 |
Included in cost of revenues (exclusive of depreciation and amortization) |
0.21 |
Included in selling, general and administrative expenses |
0.25 |
Humanitarian support in Ukraine (a) |
0.21 |
Unbilled business continuity resources (b) |
0.12 |
Geographic repositioning (d) |
0.16 |
One-time charges |
0.23 |
Other acquisition-related expenses |
0.01 |
Amortization of purchased intangible assets |
0.10 |
Foreign exchange loss |
0.03 |
Provision for income taxes: |
|
Tax effect on non-GAAP adjustments |
(0.28) |
Excess tax benefits related to stock-based compensation |
(0.07) |
Non-GAAP diluted earnings per share (at least) |
$ 1.70 |
SOURCE EPAM Systems, Inc.
НЬЮТАУН, Пенсильвания, 5 мая 2022 г. /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), ведущая компания по оказанию услуг в области цифровой трансформации и разработке продуктов, сегодня сообщила о результатах за первый квартал, закончившийся 31 марта 2022 г.
"Российское вторжение в Украину изменило мир и EPAM. Мы поддерживаем Украину и продолжаем поддерживать наших сотрудников и их семьи, одновременно способствуя более широким инициативам по оказанию помощи в стране", - сказал Аркадий Добкин, генеральный директор и президент EPAM. "Наш успешный опыт адаптации Компании к глобальным потрясениям дает мне уверенность в том, что, несмотря на глубоко личное влияние, которое война оказала на EPAM, мы справимся с этой краткосрочной задачей и станем более разнообразной, более устойчивой и более актуальной глобальной компанией".
Стратегия EPAM, которая сосредоточена на адаптации, росте и повышении ценности в более широкой и более вовлеченной экосистеме людей, клиентов и партнеров, продолжает руководить Компанией. EPAM ускорила реализацию элементов этой стратегии, сосредоточив внимание на диверсификации своей глобальной платформы доставки, расширяя существующие и новые географические местоположения, продолжая расширять и углублять возможности и таланты.
Эта ускоренная диверсификация глобальных возможностей Компании по доставке поможет поддержать как краткосрочную переориентацию клиентских проектов из пострадавшего региона, так и будущий рост после 2022 года.
Основные моменты первого квартала 2022 года
Денежный поток и другие показатели
Прогноз на Второй квартал
EPAM ожидает следующего во втором квартале:
Информация о конференц-звонке
EPAM проведет селекторное совещание для обсуждения результатов в четверг, 5 мая 2022 года, в 8:00 утра по восточному времени. Прямая конференц-связь будет доступна по телефону +1 (844) 707-0662 или +1 (703) 318-2250 (за пределами США). Доступ к веб-трансляции телефонной конференции можно получить в разделе по связям с инвесторами на веб-сайте Компании по адресу https://investors.epam.com . Повтор будет доступен примерно через час после звонка, набрав +1 (855) 859-2056 или +1 (404) 537-3406 (за пределами США) и введя идентификатор конференции 1698691. Повтор будет доступен до 12 мая 2022 года.
Об EPAM Systems
С 1993 года EPAM Systems, Inc. (NYSE: EPAM) использует свое передовое наследие в области разработки программного обеспечения, чтобы стать ведущим мировым поставщиком услуг по цифровому преобразованию – лидером отрасли в области разработки цифровых и физических продуктов и услуг по разработке цифровых платформ. Благодаря своей инновационной стратегии, интегрированным возможностям консультирования, консультирования и проектирования, а также уникальной "Инженерной ДНК" гибридные команды EPAM, развернутые по всему миру, помогают сделать будущее реальным для клиентов и сообществ по всему миру, предоставляя более эффективные платформы для предприятий, образования и здравоохранения, которые объединяют людей, оптимизируют опыт и улучшают жизнь людей.. В 2021 году EPAM была добавлена в S&P 500 и включена в список компаний Forbes Global 2000.
Выбранная Newsweek как самое любимое рабочее место 2021 года, глобальная многопрофильная команда EPAM обслуживает клиентов в более чем 45 странах на пяти континентах. Как признанный лидер, EPAM входит в число 15 крупнейших компаний в сфере услуг в области информационных технологий в Fortune 1000 и последние три года подряд занимает первое место в списке 100 самых быстрорастущих компаний Fortune, предоставляющих ИТ-услуги. EPAM также три года подряд входит в число 25 крупнейших мировых агентских компаний по версии Ad Age, а журнал Consulting назвал EPAM Continuum одной из 20 самых быстрорастущих фирм.
Узнайте больше на сайте www.epam.com и следите за EPAM в Twitter и LinkedIn.
Финансовые показатели, Не относящиеся к ОПБУ
EPAM дополняет результаты, представленные в соответствии с общепринятыми принципами бухгалтерского учета Соединенных Штатов, именуемыми GAAP, финансовыми показателями, не относящимися к GAAP. Руководство считает, что эти меры помогают проиллюстрировать основные тенденции в бизнесе EPAM, и использует эти меры для определения бюджетов и операционных целей, внутренней и внешней коммуникации, управления бизнесом EPAM и оценки его эффективности. Руководство также считает, что эти меры помогут инвесторам сравнить операционные показатели EPAM с ее результатами за предыдущие периоды. EPAM ожидает, что она продолжит сообщать как о GAAP, так и о некоторых финансовых показателях, не относящихся к GAAP, в своих финансовых результатах, включая результаты, не относящиеся к GAAP, которые исключают расходы на компенсацию на основе акций, расходы, связанные с приобретением, включая амортизацию нематериальных активов, обесценение активов, расходы, связанные с гуманитарной приверженностью EPAM своим специалистам в Украине, неоплаченные ресурсы для обеспечения непрерывности бизнеса в результате вторжения России в Украину, расходы, связанные с усилиями по географическому перемещению в России и Беларуси, некоторые другие единовременные платежи и льготы, изменения справедливой стоимости условного возмещения, прибыли и убытки от курсовых разниц, сверхнормативные налоговые льготы, связанные с компенсацией на основе акций, и соответствующее влияние корректировок до налогообложения на налоги на прибыль. Руководство также сравнивает операционные результаты на основе "постоянной валюты", которая также является финансовым показателем, не относящимся к GAAP. Эта мера исключает влияние колебаний обменного курса иностранной валюты путем перевода доходов и расходов текущего периода в доллары США по средневзвешенным обменным курсам предыдущего периода сравнения. Поскольку финансовые показатели EPAM, не относящиеся к GAAP, рассчитаны не в соответствии с GAAP, эти показатели не сопоставимы с GAAP и могут быть несопоставимы с аналогично описанными показателями, не относящимися к GAAP, о которых сообщают другие компании в отрасли EPAM. Следовательно, финансовые показатели EPAM, не относящиеся к GAAP, не должны оцениваться изолированно или заменять сопоставимые показатели GAAP, а, скорее, должны рассматриваться вместе с информацией в консолидированной финансовой отчетности EPAM, которая подготовлена в соответствии с GAAP.
Прогнозные заявления
Настоящий пресс-релиз содержит оценки и заявления, которые могут представлять собой прогнозные заявления, сделанные в соответствии с положениями Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года, точность которых обязательно зависит от рисков, неопределенностей и предположений относительно будущих событий, которые могут оказаться неточными. Наши оценки и прогнозные заявления в основном основаны на наших текущих ожиданиях и оценках будущих событий и тенденций, которые влияют или могут повлиять на наш бизнес и операции. Эти утверждения могут включать такие слова, как "может", "будет", "должен", "полагать", "ожидать", "предвидеть", "намереваться", "планировать", "оценивать" или аналогичные выражения. Эти будущие события и тенденции могут быть связаны, среди прочего, с событиями, связанными с продолжающимися военными действиями в Украине, политическими и гражданскими беспорядками или военными действиями в регионах, где мы ведем бизнес и работаем, событиями, связанными с продолжающейся пандемией COVID-19, и влиянием, которое они могут оказать на наши доходы, операции, доступ к капиталу, прибыльность и потребительский спрос. Другие факторы, которые могут привести к существенному отличию фактических результатов от выраженных или подразумеваемых, включают общие экономические условия, факторы риска, обсуждаемые в последнем Годовом отчете Компании по форме 10-K, и факторы, обсуждаемые в Ежеквартальном отчете Компании по форме 10-Q, поданном на дату или после даты этот пресс-релиз, в частности, под заголовками "Обсуждение и анализ руководством финансового состояния и результатов операций" и "Факторы риска", а также другие документы, поданные в Комиссию по ценным бумагам и биржам. Хотя мы считаем, что эти оценки и прогнозные заявления основаны на разумных предположениях, они подвержены ряду рисков и неопределенностей и сделаны в свете имеющейся у нас в настоящее время информации. EPAM не берет на себя никаких обязательств по обновлению или пересмотру каких-либо прогнозных заявлений, будь то в результате новой информации, будущих событий или иным образом, за исключением случаев, когда это может потребоваться в соответствии с применимым законодательством о ценных бумагах.
EPAM Systems, INC. AND SUBSIDIARIES |
||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||
(Unaudited) |
||||||
(In thousands, except per share data) |
||||||
Three Months Ended March 31, |
||||||
2022 |
2021 |
|||||
Revenues |
$ 1,171,614 |
$ 780,775 |
||||
Operating expenses: |
||||||
Cost of revenues (exclusive of depreciation and amortization) |
780,836 |
519,328 |
||||
Selling, general and administrative expenses |
237,277 |
136,389 |
||||
Depreciation and amortization expense |
24,259 |
17,807 |
||||
Income from operations |
129,242 |
107,251 |
||||
Interest and other (loss)/income, net |
(165) |
5,374 |
||||
Foreign exchange (loss)/gain |
(22,785) |
2,299 |
||||
Income before provision for income taxes |
106,292 |
114,924 |
||||
Provision for income taxes |
16,573 |
5,878 |
||||
Net income |
$ 89,719 |
$ 109,046 |
||||
Net income per share: |
||||||
Basic |
$ 1.58 |
$ 1.94 |
||||
Diluted |
$ 1.52 |
$ 1.86 |
||||
Shares used in calculation of net income per share: |
||||||
Basic |
56,915 |
56,170 |
||||
Diluted |
58,941 |
58,778 |
||||
EPAM Systems, INC. AND SUBSIDIARIES |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(Unaudited) |
||||||
(In thousands, except par value) |
||||||
As of March 31, 2022 |
As of December 31, 2021 |
|||||
Assets |
||||||
Current assets |
||||||
Cash and cash equivalents |
$ 1,276,461 |
$ 1,446,625 |
||||
Trade receivables and contract assets, net of allowance of $14,229 and $5,521, respectively |
901,260 |
768,928 |
||||
Prepaid and other current assets |
89,032 |
53,927 |
||||
Total current assets |
2,266,753 |
2,269,480 |
||||
Property and equipment, net |
219,639 |
236,214 |
||||
Operating lease right-of-use assets, net |
175,514 |
184,841 |
||||
Intangible assets, net |
97,569 |
101,143 |
||||
Goodwill |
534,136 |
530,723 |
||||
Deferred tax assets |
161,302 |
143,928 |
||||
Other noncurrent assets |
52,657 |
56,898 |
||||
Total assets |
$ 3,507,570 |
$ 3,523,227 |
||||
Liabilities |
||||||
Current liabilities |
||||||
Accounts payable |
$ 19,406 |
$ 24,847 |
||||
Accrued compensation and benefits expenses |
408,789 |
502,997 |
||||
Accrued expenses and other current liabilities |
177,872 |
142,014 |
||||
Short-term debt |
9,900 |
16,018 |
||||
Income taxes payable, current |
20,264 |
27,440 |
||||
Operating lease liabilities, current |
47,021 |
50,104 |
||||
Total current liabilities |
683,252 |
763,420 |
||||
Long-term debt |
30,550 |
30,234 |
||||
Income taxes payable, noncurrent |
44,103 |
42,454 |
||||
Operating lease liabilities, noncurrent |
140,814 |
142,802 |
||||
Other noncurrent liabilities |
55,095 |
48,480 |
||||
Total liabilities |
953,814 |
1,027,390 |
||||
Commitments and contingencies |
||||||
Stockholders' equity |
||||||
Common stock, $0.001 par value; 160,000 shares authorized; 57,153 and 56,868 |
57 |
57 |
||||
Additional paid-in capital |
719,122 |
711,912 |
||||
Retained earnings |
1,919,251 |
1,829,532 |
||||
Treasury stock |
(177) |
(177) |
||||
Accumulated other comprehensive loss |
(86,150) |
(54,207) |
||||
Total EPAM Systems Inc. stockholders' equity |
2,552,103 |
2,487,117 |
||||
Noncontrolling interest in consolidated subsidiaries |
1,653 |
8,720 |
||||
Total stockholders' equity |
$ 2,553,756 |
$ 2,495,837 |
||||
Total liabilities and stockholders' equity |
$ 3,507,570 |
$ 3,523,227 |
||||
EPAM Systems, INC. AND SUBSIDIARIES |
||
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures |
||
(Unaudited) |
||
(In thousands, except percent and per share amounts) |
||
Reconciliation of revenue growth as reported on a GAAP basis to revenue growth on a constant currency basis is |
||
Three Months Ended March 31, 2022 |
||
Revenue growth as reported |
50.1 % |
|
Foreign exchange rates impact |
2.9 % |
|
Revenue growth on a constant currency basis(1) |
53.0 % |
|
(1) |
Constant currency revenue results are calculated by translating current period revenues in local currency into U.S. |
Reconciliation of various income statement amounts from GAAP to non-GAAP for the three months ended March 31, 2022 and 2021: |
Three Months Ended March 31, 2022 |
|||||
GAAP |
Adjustments |
Non-GAAP |
|||
Cost of revenues (exclusive of depreciation and amortization)(2) |
$ 780,836 |
$ 54 |
$ 780,890 |
||
Selling, general and administrative expenses(3) |
$ 237,277 |
$ (54,254) |
$ 183,023 |
||
Income from operations(4) |
$ 129,242 |
$ 59,444 |
$ 188,686 |
||
Operating margin |
11.0 % |
5.1 % |
16.1 % |
||
Net income(5) |
$ 89,719 |
$ 57,324 |
$ 147,043 |
||
Diluted earnings per share |
$ 1.52 |
$ 2.49 |
|||
Three Months Ended March 31, 2021 |
|||||
GAAP |
Adjustments |
Non-GAAP |
|||
Cost of revenues (exclusive of depreciation and amortization)(2) |
$ 519,328 |
$ (11,117) |
$ 508,211 |
||
Selling, general and administrative expenses(3) |
$ 136,389 |
$ (15,378) |
$ 121,011 |
||
Income from operations(4) |
$ 107,251 |
$ 29,635 |
$ 136,886 |
||
Operating margin |
13.7 % |
3.8 % |
17.5 % |
||
Net income(5) |
$ 109,046 |
$ (2,846) |
$ 106,200 |
||
Diluted earnings per share |
$ 1.86 |
$ 1.81 |
|||
Items (2) through (5) above are detailed in the table below with the specific cross-reference noted in the appropriate item. |
Three Months Ended March 31, |
|||
2022 |
2021 |
||
Stock-based compensation (benefit)/ expense |
$ (424) |
$ 11,117 |
|
Humanitarian support in Ukraine (a) |
19,156 |
— |
|
Unbilled business continuity resources (b) |
2,570 |
— |
|
Discretionary compensation (c) |
(21,356) |
— |
|
Total adjustments to GAAP cost of revenues(2) |
(54) |
11,117 |
|
Stock-based compensation expenses |
7,536 |
13,436 |
|
Other acquisition-related expenses |
579 |
1,933 |
|
One-time charges |
1,363 |
9 |
|
Humanitarian support in Ukraine (a) |
6,500 |
— |
|
Geographic repositioning (d) |
18,706 |
— |
|
Russia long-lived asset impairment charges (e) |
19,570 |
— |
|
Total adjustments to GAAP selling, general and administrative expenses(3) |
54,254 |
15,378 |
|
Amortization of acquired intangible assets |
5,244 |
3,140 |
|
Total adjustments to GAAP income from operations(4) |
59,444 |
29,635 |
|
Change in fair value of contingent consideration included in Interest and other income, net |
3,373 |
(4,944) |
|
Impairment of financial asset |
1,300 |
— |
|
Foreign exchange loss/(gain) |
22,785 |
(2,299) |
|
Provision for income taxes: |
|||
Tax effect on non-GAAP adjustments |
(16,469) |
(3,734) |
|
Excess tax benefits related to stock-based compensation |
(13,109) |
(21,504) |
|
Total adjustments to GAAP net income(5) |
$ 57,324 |
$ (2,846) |
|
(a) Humanitarian support in Ukraine includes expenses related to EPAM's $100 million humanitarian commitment in response to Russia's invasion of Ukraine to support EPAM professionals and their families in and displaced from Ukraine. These expenses are incremental to those expenses incurred prior to the crisis, clearly separable from normal operations, and not expected to recur once the crisis has subsided and operations return to normal. |
(b) Given the uncertainty in the region introduced by Russia's invasion of Ukraine, EPAM has assigned delivery employees in locations outside of the region to ensure the continuity of delivery for customers who have substantial delivery exposure to Ukraine or other delivery concerns resulting from the invasion. These employees are not billed to clients and operate largely in a standby or backup capacity. These expenses are incremental to those expenses incurred prior to the crisis, clearly separable from normal operations, and not expected to recur once the crisis has subsided and operations return to normal. |
(c) Discretionary compensation includes the reduction of previously accrued amounts associated with the Company's variable compensation program for the year ended December 31, 2021. This adjustment was made in response to Russia's invasion of Ukraine and is not expected to recur in the future. |
(d) Geographic repositioning includes expenses associated with the Company's accelerated efforts to relocate employees in Russia and Belarus to other countries and includes the cost of accommodations, travel and food. These expenses are incremental to those expenses incurred prior to the crisis, clearly separable from normal operations, and not expected to recur once the crisis has subsided and operations return to normal. |
(e) As a result of the Company's decision to no longer serve customers in Russia, the Company incurred impairment charges for long-lived assets in Russia including charges of $15.1 million associated with property and equipment, $3.8 million associated with right-of-use assets and $0.7 million associated with goodwill. Consistent with the Company's historical non-GAAP policy, impairment charges have been excluded from non-GAAP results as these are one-time and unusual in nature. |
EPAM Systems, INC. AND SUBSIDIARIES |
||
Reconciliations of Guidance Non-GAAP Financial Measures to Comparable GAAP Financial Measures |
||
(Unaudited) |
||
The below guidance constitutes forward-looking statements within the meaning of the federal securities laws and is |
||
Reconciliation of expected revenue growth on a GAAP basis to expected revenue growth on a constant currency basis is |
||
Second Quarter 2022 |
||
Revenue growth (at least) |
29 % |
|
Foreign exchange rates impact |
5 % |
|
Revenue growth on a constant currency basis (at least) (6) |
34 % |
|
(6) |
Constant currency revenue results are calculated by translating expected revenues in local currency into U.S. dollars at the weighted average exchange rates of the comparable prior period. |
Reconciliation of expected GAAP to non-GAAP income from operations as a percentage of revenues is presented in the table below: |
Second Quarter 2022 |
|
GAAP income from operations as a percentage of revenues |
3% to 5% |
Stock-based compensation expenses |
2.4 % |
Included in cost of revenues (exclusive of depreciation and amortization) |
1.1 % |
Included in selling, general and administrative expenses |
1.3 % |
Humanitarian support in Ukraine (a) |
1.1 % |
Unbilled business continuity resources (b) |
0.7 % |
Geographic repositioning (d) |
0.9 % |
One-time charges |
1.3 % |
Other acquisition-related expenses |
0.1 % |
Amortization of purchased intangible assets |
0.5 % |
Non-GAAP income from operations as a percentage of revenues |
10% to 12% |
Reconciliation of expected GAAP to non-GAAP effective tax rate is presented in the table below: |
Second Quarter 2022 |
|
GAAP effective tax rate (approximately) |
19 % |
Tax effect on non-GAAP adjustments |
3.2 % |
Excess tax benefits related to stock-based compensation |
0.8 % |
Non-GAAP effective tax rate (approximately) |
23 % |
Reconciliation of expected GAAP to non-GAAP diluted earnings per share is presented in the table below: |
Second Quarter 2022 |
|
GAAP diluted earnings per share (at least) |
$ 0.73 |
Stock-based compensation expenses |
0.46 |
Included in cost of revenues (exclusive of depreciation and amortization) |
0.21 |
Included in selling, general and administrative expenses |
0.25 |
Humanitarian support in Ukraine (a) |
0.21 |
Unbilled business continuity resources (b) |
0.12 |
Geographic repositioning (d) |
0.16 |
One-time charges |
0.23 |
Other acquisition-related expenses |
0.01 |
Amortization of purchased intangible assets |
0.10 |
Foreign exchange loss |
0.03 |
Provision for income taxes: |
|
Tax effect on non-GAAP adjustments |
(0.28) |
Excess tax benefits related to stock-based compensation |
(0.07) |
Non-GAAP diluted earnings per share (at least) |
$ 1.70 |
ИСТОЧНИК EPAM Systems, Inc.
Показать большеПоказать меньше
