Total Revenue of $1.1 billion, Up 13% (14% on a constant currency basis)[1]
Global Client Revenue of $973 million, Up 14% (15% on a constant currency basis)(1)
Diluted EPS of $0.51, Up 9%; Adjusted Diluted EPS[2] of $0.60, Up 2%
NEW YORK, May 5, 2022 /PRNewswire/ -- Genpact Limited (NYSE: G), a global professional services firm focused on delivering digital transformation, today announced financial results for the first quarter ended March 31, 2022.
"We had a great start to the year with top-line growth, adjusted operating income margin, and adjusted diluted EPS all coming in ahead of our initial expectations," said "Tiger" Tyagarajan, Genpact's president and CEO. "Our investments in our strategic choices have positioned us well to help clients navigate the many challenges in this macro environment. We saw another quarter of strong demand for our analytics, digital, and consulting businesses that make up Transformation Services, as well as continued strength in our Intelligent Operations business."
Key Financial Highlights – First Quarter 2022
Full Year 2022 Outlook
Genpact now expects:
Genpact continues to expect:
Conference Call to Discuss Financial Results
Genpact's management will host an hour-long conference call beginning at 4:30 p.m. ET on May 5, 2022 to discuss the company's performance for the first quarter ended March 31, 2022. To participate, callers can dial +1 (877) 654-0173 from within the U.S. or +1 (281) 973-6289 from any other country. Callers will be prompted to enter the conference ID, 8898149. A live webcast of the call will also be made available on the Genpact Investor Relations website at https://www.genpact.com/investors. For those who cannot join the call live, a replay will be archived on the Genpact website after the end of the call. A transcript of the call will also be made available on the website.
Genpact (NYSE: G) is a global professional services firm that makes business transformation real. Led by our purpose -- the relentless pursuit of a world that works better for people -- we drive digital-led innovation and digitally enabled intelligent operations for our clients. Guided by our experience reinventing and running thousands of processes for hundreds of clients, many of them Global Fortune 500 companies, we drive real-world transformation at scale. We think with design, dream in digital, and solve problems with data and analytics. Combining our expertise in end-to-end operations and our AI-based platform, Genpact Cora, we focus on the details – all 100,000+ of us. From New York to New Delhi, and more than 30 countries in between, we connect every dot, reimagine every process, and reinvent the ways companies work. We know that reimagining each step from start to finish creates better business outcomes. Whatever it is, we'll be there with you – accelerating digital transformation to create bold, lasting results – because transformation happens here.
This press release contains certain statements concerning our future growth prospects, including our outlook for 2022, financial results and other 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 the impact of the invasion of Ukraine by Russia and the related sanctions and other measures being implemented or imposed in response thereto, as well as any potential expansion or escalation of the conflict or its economic disruption beyond its current scope, wage increases in locations in which we have operations, our ability to attract and retain skilled professionals, general inflationary pressures and our ability to share increased costs with our clients, our ability to effectively price our services and maintain pricing and employee utilization rates, the impact of the COVID-19 pandemic on our business and on our employees, clients, partners and suppliers, a slowdown in the economies and sectors in which our clients operate, a slowdown in the business process outsourcing or information technology services sectors, our ability to develop and successfully execute our business strategies, 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, changes in tax rates and tax legislation and other laws and regulations, risks and uncertainties regarding fluctuations in our earnings, foreign currency fluctuations, general economic conditions affecting our industry, political, economic or business conditions in countries in which we operate, including the withdrawal of the United Kingdom from the European Union, commonly known as Brexit, 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 and Quarterly Reports on Form 10-Q. 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.
Investors |
Roger Sachs, CFA |
|
+1 (203) 808-6725 |
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Media |
Siya Belliappa +1 (718) 561-9843 |
GENPACT LIMITED AND ITS SUBSIDIARIES Consolidated Balance Sheets (Unaudited) (In thousands, except per share data and share count)
|
|||||
As of December 31, 2021 |
As of March 31, 2022 |
||||
Assets |
|||||
Current assets |
|||||
Cash and cash equivalents |
$ 899,458 |
$ 861,760 |
|||
Accounts receivable, net of allowance for credit losses of |
887,742 |
971,361 |
|||
Prepaid expenses and other current assets |
134,441 |
151,613 |
|||
Total current assets |
$ 1,921,641 |
$ 1,984,734 |
|||
Property, plant and equipment, net |
215,089 |
202,707 |
|||
Operating lease right-of-use assets |
270,603 |
253,568 |
|||
Deferred tax assets |
106,322 |
99,079 |
|||
Intangible assets, net |
169,635 |
154,149 |
|||
Goodwill |
1,731,027 |
1,722,012 |
|||
Contract cost assets |
238,794 |
234,772 |
|||
Other assets, net of allowance for credit losses of $3,711 and $3,272 |
322,158 |
320,250 |
|||
Total assets |
$ 4,975,269 |
$ 4,971,271 |
|||
Liabilities and equity |
|||||
Current liabilities |
|||||
Short-term borrowings |
$ — |
$ 250,000 |
|||
Current portion of long-term debt |
383,433 |
383,569 |
|||
Accounts payable |
24,984 |
21,098 |
|||
Income taxes payable |
47,353 |
53,212 |
|||
Accrued expenses and other current liabilities |
791,440 |
615,918 |
|||
Operating leases liability |
61,591 |
59,497 |
|||
Total current liabilities |
$ 1,308,801 |
$ 1,383,294 |
|||
Long-term debt, less current portion |
1,272,476 |
1,264,372 |
|||
Operating leases liability |
247,707 |
229,776 |
|||
Deferred tax liabilities |
3,942 |
3,613 |
|||
Other liabilities |
245,210 |
242,822 |
|||
Total liabilities |
$ 3,078,136 |
$ 3,123,877 |
|||
Shareholders' equity |
|||||
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued |
— |
— |
|||
Common shares, $0.01 par value, 500,000,000 authorized, 185,336,357 |
1,847 |
1,845 |
|||
Additional paid-in capital |
1,717,165 |
1,693,854 |
|||
Retained earnings |
732,474 |
729,503 |
|||
Accumulated other comprehensive income (loss) |
(554,353) |
(577,808) |
|||
Total equity |
$ 1,897,133 |
$ 1,847,394 |
|||
Total liabilities and equity |
$ 4,975,269 |
$ 4,971,271 |
|||
GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Income (Unaudited) (In thousands, except per share data and share count)
|
||||
Three months ended March 31, |
||||
2021 |
2022 |
|||
Net revenues |
$ 946,071 |
$ 1,068,443 |
||
Cost of revenue |
600,928 |
685,962 |
||
Gross profit |
$ 345,143 |
$ 382,481 |
||
Operating expenses: |
||||
Selling, general and administrative expenses |
200,732 |
237,296 |
||
Amortization of acquired intangible assets |
16,176 |
11,306 |
||
Other operating (income) expense, net |
353 |
3 |
||
Income from operations |
$ 127,882 |
$ 133,876 |
||
Foreign exchange gains (losses), net |
3,293 |
4,303 |
||
Interest income (expense), net |
(12,342) |
(12,088) |
||
Other income (expense), net |
1,392 |
(409) |
||
Income before income tax expense |
$ 120,225 |
$ 125,682 |
||
Income tax expense |
28,952 |
29,503 |
||
Net income |
$ 91,273 |
$ 96,179 |
||
Earnings per common share |
||||
Basic |
$ 0.48 |
$ 0.52 |
||
Diluted |
$ 0.47 |
$ 0.51 |
||
Weighted average number of common shares used in computing earnings per |
||||
Basic |
188,650,112 |
185,637,776 |
||
Diluted |
193,213,258 |
189,558,404 |
GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited) (In thousands)
|
||||
Three Months ended March 31, |
||||
2021 |
2022 |
|||
Operating activities |
||||
Net income |
$ 91,273 |
$ 96,179 |
||
Adjustments to reconcile net income to net cash (used for)/ provided by operating activities: |
||||
Depreciation and amortization |
28,953 |
24,847 |
||
Amortization of debt issuance costs |
557 |
690 |
||
Amortization of acquired intangible assets |
16,176 |
11,306 |
||
Write-down of intangible assets and property, plant and equipment |
836 |
— |
||
Allowance for credit losses |
727 |
(463) |
||
Unrealized gain on revaluation of foreign currency asset/liability |
(3,127) |
(4,599) |
||
Stock-based compensation expense |
17,430 |
15,250 |
||
Deferred tax expense |
31 |
4,914 |
||
Others, net |
201 |
19 |
||
Change in operating assets and liabilities: |
||||
Increase in accounts receivable |
(6,385) |
(83,548) |
||
(Increase) decrease in prepaid expenses, other current assets, contract cost assets, operating lease |
14,526 |
(4,120) |
||
Increase (decrease) in accounts payable |
7,700 |
(2,010) |
||
Decrease in accrued expenses, other current liabilities, operating lease liabilities and other liabilities |
(106,727) |
(179,186) |
||
Increase in income taxes payable |
14,985 |
6,440 |
||
Net cash (used for)/provided by operating activities |
$ 77,156 |
$ (114,281) |
||
Investing activities |
||||
Purchase of property, plant and equipment |
(12,010) |
(16,744) |
||
Payment for internally generated intangible assets (including intangibles under development) |
(1,897) |
(1,065) |
||
Proceeds from sale of property, plant and equipment |
681 |
43 |
||
Payment for business acquisitions, net of cash acquired |
(5,309) |
— |
||
Net cash used for investing activities |
$ (18,535) |
$ (17,766) |
||
Financing activities |
||||
Repayment of finance lease obligations |
(3,037) |
(2,292) |
||
Payment of debt issuance costs |
(1,893) |
— |
||
Proceeds from long-term debt |
350,000 |
— |
||
Repayment of long-term debt |
(8,500) |
(8,500) |
||
Proceeds from short-term borrowings |
— |
250,000 |
||
Repayment of short-term borrowings |
(250,000) |
— |
||
Proceeds from issuance of common shares under stock-based compensation plans |
6,596 |
3,300 |
||
Payment for net settlement of stock-based awards |
(28,721) |
(41,889) |
||
Dividend paid |
(20,115) |
(23,134) |
||
Payment for stock repurchased and retired (including expenses related to stock repurchase) |
(134,218) |
(76,032) |
||
Net cash (used for)/ provided by financing activities |
$ (89,888) |
$ 101,453 |
||
Effect of exchange rate changes |
(5,171) |
(7,104) |
||
Net decrease in cash and cash equivalents |
(31,267) |
(30,594) |
||
Cash and cash equivalents at the beginning of the period |
680,440 |
899,458 |
||
Cash and cash equivalents at the end of the period |
$ 644,002 |
$ 861,760 |
||
Supplementary information |
||||
Cash paid during the period for interest |
$ 4,086 |
$ 1,893 |
||
Cash paid during the period for income taxes, net of refund |
$ 21,988 |
$ 28,580 |
Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with GAAP, this press release includes the following non-GAAP financial measures:
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 recorded 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 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, since April 2016 Genpact's management has excluded 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 non-GAAP financial measures, Genpact's management has adjusted foreign exchange gains and losses, interest income and expense and income tax expenses from GAAP net income, and other income and expenses, and certain gains, losses and impairment charges attributable to equity-method investments from GAAP income from operations, because management believes that the Company's results after taking into account these adjustments more accurately reflect the Company's ongoing operations. In its calculations of adjusted diluted earnings per share, Genpact's management adds back adjusted stock-based compensation expense, amortization and impairment of acquired intangible assets, acquisition-related expenses and the related tax impact of such adjustments from GAAP diluted earnings per share. 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 the revenues may be viewed without the impact of foreign currency exchange rate fluctuations compared to prior fiscal periods, thereby facilitating period-to-period comparisons of the Company's true business performance. Revenue growth on a constant currency basis 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.
Accordingly, Genpact believes that the presentation of adjusted income from operations, adjusted income from operations margin, adjusted diluted earnings per share and revenue growth 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, income from operations margin, net income and net income margin calculated in accordance with GAAP is that these non-GAAP financial measures exclude certain recurring costs and certain other charges, namely stock-based compensation expense and amortization and impairment of acquired intangible assets. 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 non-GAAP financial measures to the most directly comparable GAAP measures for the three months ended March 31, 2021 and 2022:
Reconciliation of Net Income/Margin to Adjusted Income from Operations/Margin (In thousands)
|
||||
Three months ended March 31, |
||||
2021 |
2022 |
|||
Net income |
$ 91,273 |
$ 96,179 |
||
Foreign exchange (gains) losses, net |
(3,293) |
(4,303) |
||
Interest (income) expense, net |
12,342 |
12,088 |
||
Income tax expense |
28,952 |
29,503 |
||
Stock-based compensation expense |
17,430 |
15,250 |
||
Amortization and impairment of acquired intangible assets |
15,952 |
11,302 |
||
Adjusted income from operations |
$ 162,656 |
$ 160,019 |
||
Net income margin |
9.6% |
9.0% |
||
Adjusted income from operations margin |
17.2% |
15.0% |
Reconciliation of Income from Operations/Margin to Adjusted Income from Operations/Margin (In thousands)
|
||||
Three months ended March 31, |
||||
2021 |
2022 |
|||
Income from operations |
$ 127,882 |
$ 133,876 |
||
Stock-based compensation expense |
17,430 |
15,250 |
||
Amortization and impairment of acquired intangible assets |
15,952 |
11,302 |
||
Other income (expense), net |
1,392 |
(409) |
||
Adjusted income from operations |
$ 162,656 |
$ 160,019 |
||
Income from operations margin |
13.5% |
12.5% |
||
Adjusted income from operations margin |
17.2% |
15.0% |
Reconciliation of Diluted EPS to Adjusted Diluted EPS[6] (Per share data)
|
||||
Three months ended March 31, |
||||
2021 |
2022 |
|||
Diluted EPS |
$ 0.47 |
$ 0.51 |
||
Stock-based compensation expense |
0.09 |
0.08 |
||
Amortization and impairment of acquired intangible assets |
0.08 |
0.06 |
||
Tax impact on stock-based compensation expense |
(0.03) |
(0.03) |
||
Tax impact on amortization and impairment of acquired intangible assets |
(0.02) |
(0.01) |
||
Adjusted diluted EPS |
$ 0.59 |
$ 0.60 |
The following tables show the reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures for the year ending December 31, 2022:
Reconciliation of Outlook for Net Income Margin to Adjusted Income from Operations Margin[7] |
||||
Year ending December 31, 2022 |
||||
Lower |
Upper |
|||
Net income margin |
9.4% |
9.8% |
||
Estimated foreign exchange (gains) losses, net |
(0.1) % |
(0.1) % |
||
Estimated interest (income) expense, net |
1.0% |
1.0% |
||
Estimated income tax expense |
3.0% |
3.1% |
||
Estimated stock-based compensation expense |
1.7% |
1.6% |
||
Estimated amortization of acquired intangible assets |
1.0% |
1.0% |
||
Adjusted income from operations margin |
16.0% |
16.5% |
Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from Operations Margin7
|
||||
Year ending December 31, 2022 |
||||
Lower |
Upper |
|||
Income from operations margin |
13.3% |
13.8% |
||
Estimated stock-based compensation expense |
1.7% |
1.6% |
||
Estimated amortization and impairment of acquired intangible assets |
1.0% |
1.0% |
||
Estimated other income (expense), net |
0.1% |
0.1% |
||
Adjusted income from operations margin |
16.0% |
16.5% |
Reconciliation of Outlook for Diluted EPS to Adjusted Diluted EPS7 (Per share data)
|
||||
Year ending December 31, 2022 |
||||
Lower |
Upper |
|||
Diluted EPS |
$ 2.14 |
$ 2.30 |
||
Estimated stock-based compensation expense |
0.39 |
0.39 |
||
Estimated amortization and impairment of acquired intangible assets |
0.23 |
0.23 |
||
Estimated tax impact on stock-based compensation expense |
(0.10) |
(0.10) |
||
Estimated tax impact on amortization and impairment of acquired intangible assets |
(0.06) |
(0.06) |
||
Adjusted diluted EPS |
$ 2.60 |
$ 2.76 |
1 |
Revenue growth on a constant currency basis is a non-GAAP measure and is calculated by restating current-period activity using the prior |
2 |
Adjusted diluted earnings per share is a non-GAAP measure. A reconciliation of GAAP diluted earnings per share to adjusted diluted earnings |
3 |
Adjusted income from operations and adjusted income from operations margin are non-GAAP measures. Reconciliations of each of GAAP income from operations and GAAP net income to adjusted income from operations and GAAP income from operations margin and GAAP net income margin to adjusted income from operations margin are attached to this release. |
4 |
Adjusted diluted earnings per share is a non-GAAP measure. A reconciliation of the outlook for GAAP diluted earnings per share to adjusted diluted earnings per share is attached to this release. |
5 |
Adjusted income from operations margin is a non-GAAP measure. A reconciliation of the outlook for each of GAAP income from operations margin and GAAP net income margin to adjusted income from operations margin is attached to this release. |
6 |
Due to rounding, the numbers presented in this table may not add up precisely to the totals provided. |
7 |
Due to rounding, the numbers presented in this table may not add up precisely to the totals provided. |
Общая выручка составила 1,1 миллиарда долларов, увеличившись на 13% (14% в пересчете на постоянную валюту)[1]
Глобальная клиентская выручка составила 973 миллиона долларов, увеличившись на 14% (15% в постоянной валюте)(1)
Разводненная прибыль на акцию составила $0,51, Увеличившись на 9%; Скорректированная разводненная прибыль на акцию[2] составила $0,60, Увеличившись на 2%
НЬЮ-ЙОРК, 5 мая 2022 г. /PRNewswire/ -- Genpact Limited (NYSE: G), глобальная компания по оказанию профессиональных услуг, специализирующаяся на цифровой трансформации, сегодня объявила финансовые результаты за первый квартал, закончившийся 31 марта 2022 года.
"У нас было отличное начало года: рост выручки, скорректированная маржа операционной прибыли и скорректированная разводненная прибыль на акцию превзошли наши первоначальные ожидания", - сказал "Тигр" Тягараджан, президент и главный исполнительный директор Genpact. "Наши инвестиции в наш стратегический выбор позволили нам успешно помочь клиентам справиться со многими проблемами в этой макроэкономической среде. Мы увидели еще одну четверть высокого спроса на наши аналитические, цифровые и консалтинговые услуги, которые составляют Услуги по трансформации, а также продолжающийся рост нашего бизнеса интеллектуальных операций".
Основные финансовые показатели – Первый квартал 2022 года
Прогноз на Весь 2022 год
Genpact теперь ожидает:
Genpact продолжает ожидать:
Телефонная конференция для обсуждения финансовых результатов
Руководство Genpact проведет часовую телефонную конференцию, которая начнется в 4:30 вечера по восточному времени 5 мая 2022 года, чтобы обсудить результаты деятельности компании за первый квартал, закончившийся 31 марта 2022 года. Чтобы принять участие, абоненты могут набрать +1 (877) 654-0173 из США или +1 (281) 973-6289 из любой другой страны. Абонентам будет предложено ввести идентификатор конференции 8898149. Прямая трансляция звонка также будет доступна на веб-сайте по связям с инвесторами Genpact по адресу https://www .Genpact.com/investors . Для тех, кто не может присоединиться к вызову в прямом эфире, повтор будет заархивирован на веб-сайте Genpact после окончания вызова. Стенограмма разговора также будет размещена на веб-сайте.
Genpact (NYSE: G) - глобальная компания, предоставляющая профессиональные услуги, которая делает трансформацию бизнеса реальной. Руководствуясь нашей целью - неустанным стремлением к созданию мира, который лучше работает для людей, - мы внедряем цифровые инновации и интеллектуальные операции с цифровыми возможностями для наших клиентов. Руководствуясь нашим опытом переосмысления и запуска тысяч процессов для сотен клиентов, многие из которых являются компаниями из списка Fortune 500, мы осуществляем масштабные преобразования в реальном мире. Мы думаем с помощью дизайна, мечтаем в цифровом формате и решаем проблемы с помощью данных и аналитики. Объединяя наш опыт в области сквозных операций и нашу платформу на основе искусственного интеллекта Genpact Cora, мы фокусируемся на деталях - все более 100 000 из нас. От Нью-Йорка до Нью-Дели и более чем в 30 странах между ними мы соединяем каждую точку, переосмысливаем каждый процесс и изобретаем способы работы компаний. Мы знаем, что переосмысление каждого шага от начала до конца приводит к лучшим бизнес-результатам. Что бы это ни было, мы будем рядом с вами, ускоряя цифровую трансформацию для достижения смелых и долгосрочных результатов, потому что трансформация происходит здесь.
Этот пресс-релиз содержит определенные заявления, касающиеся наших будущих перспектив роста, включая наш прогноз на 2022 год, финансовые результаты и другие прогнозные заявления, как определено в положениях о безопасной гавани Закона США о реформе судебных разбирательств по частным ценным бумагам 1995 года. Эти заявления связаны с рядом рисков, неопределенностей и других факторов, которые могут привести к тому, что фактические результаты будут существенно отличаться от тех, которые указаны в таких прогнозных заявлениях. Эти риски, неопределенности и иные факторы включают в себя, но не ограничиваются последствия вторжения в Украину со стороны России и соответствующих санкций и иных мер, реализуемых или введены в ответ на них, а также любого возможного расширения или эскалации конфликта или экономических потрясений за пределами ее текущей области, повышения заработной платы в местах, где мы ведем бизнес, в нашей способности привлекать и удерживать высококвалифицированных специалистов, общие инфляционные процессы и нашу возможность поделиться увеличению затрат наших клиентов, наша способность эффективно цене наших услуг и ведение ценообразования и работника в условиях полной загрузки мощностей, влияние COVID-19 пандемией на наш бизнес и на наших сотрудников, клиентов, партнеров и поставщиков, замедление в экономике и секторов, в которых работают наши клиенты, замедление аутсорсинг бизнес-процессов или информационных технологий, сфере услуг, наша способность разрабатывать и успешно реализовывать наши бизнес-стратегии, рисков и неопределенностей, возникающих из наших прошлых и будущих приобретений, наша способность превращать заказы на доходы, нашу способность управлять роста, факторы, которые могут повлиять на наше экономическое преимущество, изменения налоговых ставок и налогового законодательства и других законодательных и нормативных актов, риски и неопределенность в отношении колебаний в наш заработок, валютные колебания, общие экономические условия, влияющие на нашу отрасль, политические, экономические или коммерческие условия в странах, в которых мы работаем, в том числе выход Соединенного Королевства из Европейского Союза, известный как выходе Великобритании из ЕС, а также другие риски, подробно в наших отчетах, поданных с США по ценным бумагам и биржам, Genpact включая годовой отчет по форме 10-К и квартальные отчеты по форме 10-Q. С этими документами можно ознакомиться по адресу www.sec.gov . Genpact может время от времени делать дополнительные письменные и устные заявления прогнозного характера, включая заявления, содержащиеся в наших заявках в Комиссию по ценным бумагам и биржам и наших отчетах акционерам. Несмотря на то, что Genpact считает, что эти прогнозные заявления основаны на разумных предположениях, мы предупреждаем вас не полагаться чрезмерно на эти прогнозные заявления, которые отражают текущий анализ руководством будущих событий и не должны рассматриваться как отражающие ожидания или убеждения руководства на любую дату, последующую за моментом они сделаны. Genpact не берет на себя никаких обязательств по обновлению любых прогнозных заявлений, которые могут время от времени делаться компанией Genpact или от ее имени.
Investors |
Roger Sachs, CFA |
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+1 (203) 808-6725 |
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Media |
Siya Belliappa +1 (718) 561-9843 |
Genpact LIMITED AND ITS SUBSIDIARIES Consolidated Balance Sheets (Unaudited) (In thousands, except per share data and share count)
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As of December 31, 2021 |
As of March 31, 2022 |
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Assets |
|||||
Current assets |
|||||
Cash and cash equivalents |
$ 899,458 |
$ 861,760 |
|||
Accounts receivable, net of allowance for credit losses of |
887,742 |
971,361 |
|||
Prepaid expenses and other current assets |
134,441 |
151,613 |
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Total current assets |
$ 1,921,641 |
$ 1,984,734 |
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Property, plant and equipment, net |
215,089 |
202,707 |
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Operating lease right-of-use assets |
270,603 |
253,568 |
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Deferred tax assets |
106,322 |
99,079 |
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Intangible assets, net |
169,635 |
154,149 |
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Goodwill |
1,731,027 |
1,722,012 |
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Contract cost assets |
238,794 |
234,772 |
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Other assets, net of allowance for credit losses of $3,711 and $3,272 |
322,158 |
320,250 |
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Total assets |
$ 4,975,269 |
$ 4,971,271 |
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Liabilities and equity |
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Current liabilities |
|||||
Short-term borrowings |
$ — |
$ 250,000 |
|||
Current portion of long-term debt |
383,433 |
383,569 |
|||
Accounts payable |
24,984 |
21,098 |
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Income taxes payable |
47,353 |
53,212 |
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Accrued expenses and other current liabilities |
791,440 |
615,918 |
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Operating leases liability |
61,591 |
59,497 |
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Total current liabilities |
$ 1,308,801 |
$ 1,383,294 |
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Long-term debt, less current portion |
1,272,476 |
1,264,372 |
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Operating leases liability |
247,707 |
229,776 |
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Deferred tax liabilities |
3,942 |
3,613 |
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Other liabilities |
245,210 |
242,822 |
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Total liabilities |
$ 3,078,136 |
$ 3,123,877 |
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Shareholders' equity |
|||||
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued |
— |
— |
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Common shares, $0.01 par value, 500,000,000 authorized, 185,336,357 |
1,847 |
1,845 |
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Additional paid-in capital |
1,717,165 |
1,693,854 |
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Retained earnings |
732,474 |
729,503 |
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Accumulated other comprehensive income (loss) |
(554,353) |
(577,808) |
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Total equity |
$ 1,897,133 |
$ 1,847,394 |
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Total liabilities and equity |
$ 4,975,269 |
$ 4,971,271 |
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Genpact LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Income (Unaudited) (In thousands, except per share data and share count)
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Three months ended March 31, |
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2021 |
2022 |
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Net revenues |
$ 946,071 |
$ 1,068,443 |
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Cost of revenue |
600,928 |
685,962 |
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Gross profit |
$ 345,143 |
$ 382,481 |
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Operating expenses: |
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Selling, general and administrative expenses |
200,732 |
237,296 |
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Amortization of acquired intangible assets |
16,176 |
11,306 |
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Other operating (income) expense, net |
353 |
3 |
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Income from operations |
$ 127,882 |
$ 133,876 |
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Foreign exchange gains (losses), net |
3,293 |
4,303 |
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Interest income (expense), net |
(12,342) |
(12,088) |
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Other income (expense), net |
1,392 |
(409) |
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Income before income tax expense |
$ 120,225 |
$ 125,682 |
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Income tax expense |
28,952 |
29,503 |
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Net income |
$ 91,273 |
$ 96,179 |
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Earnings per common share |
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Basic |
$ 0.48 |
$ 0.52 |
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Diluted |
$ 0.47 |
$ 0.51 |
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Weighted average number of common shares used in computing earnings per |
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Basic |
188,650,112 |
185,637,776 |
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Diluted |
193,213,258 |
189,558,404 |
Genpact LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited) (In thousands)
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Three Months ended March 31, |
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2021 |
2022 |
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Operating activities |
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Net income |
$ 91,273 |
$ 96,179 |
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Adjustments to reconcile net income to net cash (used for)/ provided by operating activities: |
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Depreciation and amortization |
28,953 |
24,847 |
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Amortization of debt issuance costs |
557 |
690 |
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Amortization of acquired intangible assets |
16,176 |
11,306 |
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Write-down of intangible assets and property, plant and equipment |
836 |
— |
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Allowance for credit losses |
727 |
(463) |
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Unrealized gain on revaluation of foreign currency asset/liability |
(3,127) |
(4,599) |
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Stock-based compensation expense |
17,430 |
15,250 |
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Deferred tax expense |
31 |
4,914 |
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Others, net |
201 |
19 |
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Change in operating assets and liabilities: |
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Increase in accounts receivable |
(6,385) |
(83,548) |
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(Increase) decrease in prepaid expenses, other current assets, contract cost assets, operating lease |
14,526 |
(4,120) |
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Increase (decrease) in accounts payable |
7,700 |
(2,010) |
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Decrease in accrued expenses, other current liabilities, operating lease liabilities and other liabilities |
(106,727) |
(179,186) |
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Increase in income taxes payable |
14,985 |
6,440 |
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Net cash (used for)/provided by operating activities |
$ 77,156 |
$ (114,281) |
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Investing activities |
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Purchase of property, plant and equipment |
(12,010) |
(16,744) |
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Payment for internally generated intangible assets (including intangibles under development) |
(1,897) |
(1,065) |
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Proceeds from sale of property, plant and equipment |
681 |
43 |
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Payment for business acquisitions, net of cash acquired |
(5,309) |
— |
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Net cash used for investing activities |
$ (18,535) |
$ (17,766) |
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Financing activities |
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Repayment of finance lease obligations |
(3,037) |
(2,292) |
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Payment of debt issuance costs |
(1,893) |
— |
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Proceeds from long-term debt |
350,000 |
— |
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Repayment of long-term debt |
(8,500) |
(8,500) |
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Proceeds from short-term borrowings |
— |
250,000 |
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Repayment of short-term borrowings |
(250,000) |
— |
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Proceeds from issuance of common shares under stock-based compensation plans |
6,596 |
3,300 |
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Payment for net settlement of stock-based awards |
(28,721) |
(41,889) |
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Dividend paid |
(20,115) |
(23,134) |
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Payment for stock repurchased and retired (including expenses related to stock repurchase) |
(134,218) |
(76,032) |
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Net cash (used for)/ provided by financing activities |
$ (89,888) |
$ 101,453 |
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Effect of exchange rate changes |
(5,171) |
(7,104) |
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Net decrease in cash and cash equivalents |
(31,267) |
(30,594) |
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Cash and cash equivalents at the beginning of the period |
680,440 |
899,458 |
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Cash and cash equivalents at the end of the period |
$ 644,002 |
$ 861,760 |
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Supplementary information |
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Cash paid during the period for interest |
$ 4,086 |
$ 1,893 |
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Cash paid during the period for income taxes, net of refund |
$ 21,988 |
$ 28,580 |
Финансовые показатели, не относящиеся к ОПБУ
В дополнение к консолидированной финансовой отчетности, представленной в соответствии с GAAP, в настоящий пресс-релиз включены следующие финансовые показатели, не относящиеся к GAAP:
Эти финансовые показатели, не относящиеся к GAAP, не основаны на каком-либо всеобъемлющем наборе правил или принципов бухгалтерского учета и не должны рассматриваться как замена или превосходство финансовых показателей, рассчитанных в соответствии с GAAP, и могут отличаться от финансовых показателей, не относящихся к GAAP, используемых другими компаниями. Соответственно, эти финансовые показатели, не относящиеся к GAAP, финансовая отчетность, подготовленная в соответствии с GAAP, и сверки финансовой отчетности Genpact по GAAP с такими финансовыми показателями, не относящимися к GAAP, должны быть тщательно оценены.
До июля 2012 года руководство Genpact использовало финансовую отчетность, которая исключала значительные расходы, связанные с приобретением, амортизацию соответствующих приобретенных нематериальных активов и амортизацию приобретенных нематериальных активов, учтенных при создании компании в 2004 году, для целей внутренней управленческой отчетности, составления бюджета и принятия решений, включая сравнение операционных результатов Genpact с результатами деятельности его конкуренты. Однако, учитывая приобретения Genpact различного масштаба и размера, а также трудности в прогнозировании расходов, связанных с приобретениями и амортизацией приобретенных нематериальных активов, с июля 2012 года руководство Genpact использовало финансовую отчетность, исключающую все расходы, связанные с приобретением, и амортизацию приобретенных нематериальных активов, для своей внутренней управленческой отчетности, составления бюджета и принятия решений.-создание целей, включая сравнение операционных результатов Genpact с результатами его конкурентов. По тем же причинам с апреля 2016 года руководство Genpact исключило обесценение приобретенных нематериальных активов из финансовой отчетности, которую оно использует для целей внутреннего управления. Расходы, связанные с приобретением, исключаются в том периоде, в котором приобретение завершено.
Руководство Genpact также использует финансовые отчеты, которые исключают расходы на компенсацию на основе акций. Из-за различных доступных методик оценки, субъективных допущений и разнообразия типов вознаграждений, которые компании могут использовать при принятии ASC 718 "Компенсация -Компенсация акций", руководство Genpact считает, что предоставление финансовых показателей, не относящихся к GAAP, которые исключают такие расходы, позволяет инвесторам проводить дополнительные сравнения между операционными результатами Genpact и результатами других компаний. компании. Кроме того, в своих расчетах финансовых показателей, не относящихся к GAAP, руководство Genpact скорректировало прибыли и убытки от курсовых разниц, процентные доходы и расходы, а также расходы по налогу на прибыль из чистой прибыли по GAAP и прочих доходов и расходов, а также определенные прибыли, убытки и расходы от обесценения, относящиеся к инвестициям по методу долевого участия, из доходов по GAAP от операций, поскольку руководство считает, что результаты Компании после учета этих корректировок более точно отражают текущую деятельность Компании. В своих расчетах скорректированной разводненной прибыли на акцию руководство Genpact учитывает скорректированные расходы на компенсацию на основе акций, амортизацию и обесценение приобретенных нематериальных активов, расходы, связанные с приобретением, и соответствующие налоговые последствия таких корректировок, исходя из разводненной прибыли на акцию по GAAP. Для целей расчета скорректированной разводненной прибыли на акцию совокупный эффект текущего и отложенного налогов определяется путем умножения каждой корректировки до налогообложения на соответствующую установленную законом ставку налога на прибыль.
Руководство Genpact предоставляет информацию о доходах на постоянной валютной основе, чтобы доходы можно было просматривать без влияния колебаний обменного курса иностранной валюты по сравнению с предыдущими финансовыми периодами, тем самым облегчая сравнение реальных показателей бизнеса Компании от периода к периоду. Рост выручки на постоянной валютной основе рассчитывается путем пересчета деятельности текущего периода с использованием обменных курсов иностранной валюты предыдущего финансового периода, скорректированных с учетом хеджирования прибылей/убытков в этом периоде.
Соответственно, Genpact считает, что представление скорректированного дохода от операций, скорректированного дохода от операционной маржи, скорректированной разводненной прибыли на акцию и роста выручки на постоянной валютной основе, если рассматривать его в сочетании с отчетными результатами Компании, может предоставить инвесторам и руководству полезную дополнительную информацию о финансовых и бизнес-тенденциях, связанных с его финансовое состояние и результаты деятельности.
Ограничение использования скорректированного дохода от операций и скорректированной маржи дохода от операций в сравнении с доходом от операций, маржой дохода от операций, чистой прибылью и маржой чистого дохода, рассчитанной в соответствии с GAAP, заключается в том, что эти финансовые показатели, отличные от GAAP, исключают определенные текущие расходы и некоторые другие расходы, а именно расходы на компенсацию на основе запасов и амортизацию и обесценение приобретенных нематериальных активов. Руководство компенсирует это ограничение, предоставляя конкретную информацию о суммах по ОПБУ, исключенных из скорректированного дохода от операций и скорректированного дохода от операционной маржи.
В следующих таблицах показана сверка этих финансовых показателей, не относящихся к GAAP, с наиболее непосредственно сопоставимыми показателями GAAP за три месяца, закончившихся 31 марта 2021 и 2022 годов:
Reconciliation of Net Income/Margin to Adjusted Income from Operations/Margin (In thousands)
|
||||
Three months ended March 31, |
||||
2021 |
2022 |
|||
Net income |
$ 91,273 |
$ 96,179 |
||
Foreign exchange (gains) losses, net |
(3,293) |
(4,303) |
||
Interest (income) expense, net |
12,342 |
12,088 |
||
Income tax expense |
28,952 |
29,503 |
||
Stock-based compensation expense |
17,430 |
15,250 |
||
Amortization and impairment of acquired intangible assets |
15,952 |
11,302 |
||
Adjusted income from operations |
$ 162,656 |
$ 160,019 |
||
Net income margin |
9.6% |
9.0% |
||
Adjusted income from operations margin |
17.2% |
15.0% |
Reconciliation of Income from Operations/Margin to Adjusted Income from Operations/Margin (In thousands)
|
||||
Three months ended March 31, |
||||
2021 |
2022 |
|||
Income from operations |
$ 127,882 |
$ 133,876 |
||
Stock-based compensation expense |
17,430 |
15,250 |
||
Amortization and impairment of acquired intangible assets |
15,952 |
11,302 |
||
Other income (expense), net |
1,392 |
(409) |
||
Adjusted income from operations |
$ 162,656 |
$ 160,019 |
||
Income from operations margin |
13.5% |
12.5% |
||
Adjusted income from operations margin |
17.2% |
15.0% |
Reconciliation of Diluted EPS to Adjusted Diluted EPS[6] (Per share data)
|
||||
Three months ended March 31, |
||||
2021 |
2022 |
|||
Diluted EPS |
$ 0.47 |
$ 0.51 |
||
Stock-based compensation expense |
0.09 |
0.08 |
||
Amortization and impairment of acquired intangible assets |
0.08 |
0.06 |
||
Tax impact on stock-based compensation expense |
(0.03) |
(0.03) |
||
Tax impact on amortization and impairment of acquired intangible assets |
(0.02) |
(0.01) |
||
Adjusted diluted EPS |
$ 0.59 |
$ 0.60 |
В следующих таблицах показана сверка прогнозных финансовых показателей, не относящихся к GAAP, с наиболее непосредственно сопоставимыми показателями GAAP за год, заканчивающийся 31 декабря 2022 года:
Reconciliation of Outlook for Net Income Margin to Adjusted Income from Operations Margin[7] |
||||
Year ending December 31, 2022 |
||||
Lower |
Upper |
|||
Net income margin |
9.4% |
9.8% |
||
Estimated foreign exchange (gains) losses, net |
(0.1) % |
(0.1) % |
||
Estimated interest (income) expense, net |
1.0% |
1.0% |
||
Estimated income tax expense |
3.0% |
3.1% |
||
Estimated stock-based compensation expense |
1.7% |
1.6% |
||
Estimated amortization of acquired intangible assets |
1.0% |
1.0% |
||
Adjusted income from operations margin |
16.0% |
16.5% |
Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from Operations Margin7
|
||||
Year ending December 31, 2022 |
||||
Lower |
Upper |
|||
Income from operations margin |
13.3% |
13.8% |
||
Estimated stock-based compensation expense |
1.7% |
1.6% |
||
Estimated amortization and impairment of acquired intangible assets |
1.0% |
1.0% |
||
Estimated other income (expense), net |
0.1% |
0.1% |
||
Adjusted income from operations margin |
16.0% |
16.5% |
Reconciliation of Outlook for Diluted EPS to Adjusted Diluted EPS7 (Per share data)
|
||||
Year ending December 31, 2022 |
||||
Lower |
Upper |
|||
Diluted EPS |
$ 2.14 |
$ 2.30 |
||
Estimated stock-based compensation expense |
0.39 |
0.39 |
||
Estimated amortization and impairment of acquired intangible assets |
0.23 |
0.23 |
||
Estimated tax impact on stock-based compensation expense |
(0.10) |
(0.10) |
||
Estimated tax impact on amortization and impairment of acquired intangible assets |
(0.06) |
(0.06) |
||
Adjusted diluted EPS |
$ 2.60 |
$ 2.76 |
1 |
Revenue growth on a constant currency basis is a non-GAAP measure and is calculated by restating current-period activity using the prior |
2 |
Adjusted diluted earnings per share is a non-GAAP measure. A reconciliation of GAAP diluted earnings per share to adjusted diluted earnings |
3 |
Adjusted income from operations and adjusted income from operations margin are non-GAAP measures. Reconciliations of each of GAAP income from operations and GAAP net income to adjusted income from operations and GAAP income from operations margin and GAAP net income margin to adjusted income from operations margin are attached to this release. |
4 |
Adjusted diluted earnings per share is a non-GAAP measure. A reconciliation of the outlook for GAAP diluted earnings per share to adjusted diluted earnings per share is attached to this release. |
5 |
Adjusted income from operations margin is a non-GAAP measure. A reconciliation of the outlook for each of GAAP income from operations margin and GAAP net income margin to adjusted income from operations margin is attached to this release. |
6 |
Due to rounding, the numbers presented in this table may not add up precisely to the totals provided. |
7 |
Due to rounding, the numbers presented in this table may not add up precisely to the totals provided. |