Virtusa Announces Third Quarter 2018 Consolidated Financial Results
-
Third quarter fiscal 2018 revenue of
$263.8 million increased 6.3% sequentially and 21.5% year-over-year. -
Third quarter fiscal 2018 GAAP operating income of
$13.7 million , up 32.9% sequentially, and non-GAAP operating income of$26.0 million , up 31.5% sequentially. -
Third quarter fiscal 2018 GAAP diluted EPS was
($0.38) , inclusive of an impact from U.S. tax reform of($0.68) . Non-GAAP diluted EPS was$0.47 , up 34.3% sequentially and 27.0% year-over-year. -
Generated
$24.3 million of cash flow from operating activities during the third quarter of fiscal 2018, representing 9.2% of revenue. -
Successful Polaris delisting process results in increasing
ownership to at least 93% for a cash outlay of approximately
$145 million .
Third Quarter Fiscal 2018 Consolidated Financial Results
Revenue for the third quarter of fiscal 2018 was
GAAP net loss available to common shareholders for the third quarter of
fiscal 2018 was
Non GAAP Results:
Non-GAAP income from operations, which excludes stock-based compensation
expense, restructuring charges and acquisition related charges, was
Non-GAAP net income available to common shareholders, which excludes
stock-based compensation expense, restructuring charges, acquisition
related charges, foreign currency transaction gains and losses, the tax
impact of the aforementioned items, and charges related to the Tax Act
for the third quarter of fiscal 2018 was
Balance Sheet and Cash Flow
The Company ended the third quarter of fiscal 2018 with
Polaris Delisting and New Credit Facility
On
In support of the transaction, on
Management Commentary
Financial Outlook
-
Fourth quarter fiscal 2018 revenue is expected to be in the range of
$274.0 to $280.0 million . GAAP diluted EPS is expected to be in the range of$0.21 to $0.27 , exclusive of any changes to provisional amounts related to the Tax Act. Non-GAAP diluted EPS is expected to be in the range of$0.51 to $0.57 . -
Fiscal year 2018 revenue is expected to be in the range of
$1,013.3 to$1,019.3 million . GAAP diluted EPS is expected to be in the range of$0.06 to $0.12 (3), exclusive of any changes to provisional amounts related to the Tax Act. Non-GAAP diluted EPS is expected to be in the range of$1.59 to $1.65 (4). -
Virtusa anticipates incurring a restructuring charge of$0.3 million in the fourth quarter of fiscal year 2018 as it completes its previously announced resource optimization initiatives, which began in the second quarter of fiscal year 2018. This charge is reflected in the GAAP EPS guidance, and not included in the non-GAAP EPS guidance.
In accordance with US GAAP,
- Third quarter GAAP loss per share was calculated by including the impact of dividends and accretion on the convertible preferred shares in net income available to common stockholders and excluding the impact of the convertible preferred shares from the weighted average shares. Third quarter non-GAAP EPS was calculated by excluding the impact of dividends and accretion on the convertible preferred shares from net income available to common stockholders and including the impact of the convertible preferred shares in the weighted average shares outstanding as these shares were dilutive on a non-GAAP basis.
- GAAP EPS guidance was calculated under the assumption that these convertible securities will be anti-dilutive in the fiscal fourth quarter 2018. Thus, in determining full fiscal year 2018 GAAP EPS guidance, dividends and accretion on the convertible preferred shares are deducted from net income available to common stockholders and the convertible preferred shares have been excluded from weighted average shares outstanding.
- In determining Non-GAAP EPS guidance for full fiscal year 2018, dividends and accretion on the convertible preferred shares are deducted from net income available to common stockholders and the convertible preferred shares have been excluded from weighted average shares outstanding for the first fiscal quarter of 2018. For the remaining fiscal quarters of 2018, Non-GAAP EPS guidance was determined by excluding the impact of dividends and accretion on the convertible preferred shares from net income available to common stockholders and including the impact of the convertible preferred shares in the weighted average shares outstanding as shares were dilutive for these quarters.
The Company’s fourth quarter and fiscal year 2018 diluted GAAP EPS
estimates are based on average share counts of approximately 30.4
million and 30.1 million, respectively, (assuming no further exercises
of stock-based awards). The Company’s fourth quarter and fiscal year
2018 diluted non-GAAP EPS estimates are based on average share counts of
approximately 33.4 million and 32.4 million, respectively, (assuming no
further exercises of stock-based awards). GAAP and non-GAAP average
share counts assume a stock price of
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Holding a proven record of success across industries,
Through the acquisition of a majority interest in
Non-GAAP Financial Information
This press release includes certain non-GAAP financial measures as
defined by Regulation G by the
-
Virtusa presents constant currency revenue growth rates to provide insights into, and a framework for assessing, howVirtusa's revenue performed excluding the effect of foreign currency rate fluctuations (see footnote 1). -
Virtusa presents a reconciliation of its cash and cash equivalents to total cash, cash equivalents, short term and long term investments whichVirtusa believes provides insight into its cash position and overall liquidity (see footnote 2). -
Virtusa also presents the following consolidated statements of income (loss) measures that exclude, when applicable, acquisition-related charges, restructuring charges, stock-based compensation expense, foreign currency transaction gains and losses, the tax impact of dividends received from foreign subsidiaries and the impact from the U.S. government enacted comprehensive tax legislation (“Tax Act”) to provide further insights into the comparison of Virtusa’s operating results among the periods:- Non-GAAP income from operations: income from operations, as reported on Virtusa’s consolidated statements of income, excluding stock-based compensation expense, acquisition-related charges and restructuring charges.
- Non-GAAP operating margin: non-GAAP income from operations as a percentage of reported revenues.
-
Non-GAAP net income available to
Virtusa common stockholders: net income (loss) available toVirtusa common stockholders, as reported on our consolidated statements of income (loss), excluding stock-based compensation, acquisition-related charges, restructuring charges, foreign currency transaction gains and losses, the tax impact of the above items, the tax impact of dividends received from foreign subsidiaries, and the impact from the Tax Act. -
Non-GAAP diluted earnings per share: diluted earnings (loss) per
share, as reported on Virtusa’s consolidated statements of income
(loss) available to
Virtusa common stockholders, excluding stock-based compensation, acquisition-related charges, restructuring charges, foreign currency transaction gains and losses, the tax impact of the above items, the per share tax impact of dividends received from foreign subsidiaries, and the per share impact from the Tax Act. Non-GAAP diluted earnings per share is also subject to dilutive and anti-dilutive requirements of the if-converted method related to our Series A Convertible Preferred Stock that could result in a difference between GAAP to non-GAAP diluted weighted average shares outstanding.
The following table presents a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure:
(in thousands, except per share amounts) | ||||||||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
GAAP income from operations | $ | 13,663 | $ | 6,458 | $ | 30,012 | $ | 8,147 | ||||||||||||||
Add: Stock-based compensation expense | 9,118 | 4,748 | 20,048 | 17,023 | ||||||||||||||||||
Add: Acquisition-related charges and restructuring charges(a) | 3,227 | 5,116 | 9,087 | 11,787 | ||||||||||||||||||
Non-GAAP income from operations | $ | 26,008 | $ | 16,322 | $ | 59,147 | $ | 36,957 | ||||||||||||||
GAAP operating margin | 5.2 | % | 3.0 | % | 4.1 | % | 1.3 | % | ||||||||||||||
Effect of above adjustments to income from operations | 4.7 | % | 4.5 | % | 3.9 | % | 4.6 | % | ||||||||||||||
Non-GAAP operating margin | 9.9 | % | 7.5 | % | 8.0 | % | 5.9 | % | ||||||||||||||
GAAP net income (loss) available to Virtusa common stockholders | $ | (11,142 | ) | $ | 4,435 | $ | (4,504 | ) | $ | 1,393 | ||||||||||||
Add: Stock-based compensation expense | 9,118 | 4,748 | 20,048 | 17,023 | ||||||||||||||||||
Add: Acquisition-related charges and restructuring charges(a) | 3,227 | 5,116 | 9,087 | 11,787 | ||||||||||||||||||
Add: Foreign currency transaction (gains) losses(b) | (2,576 | ) | 1,252 | (1,019 | ) | 2,802 | ||||||||||||||||
Add: Impact from Tax Act(h) | 19,815 | - | 19,815 | - | ||||||||||||||||||
Tax adjustments (c) | (3,210 | ) | (4,198 | ) | (9,798 | ) | (7,397 | ) | ||||||||||||||
Noncontrolling interest, net of taxes (d) | (647 | ) | (319 | ) | (1,326 | ) | (875 | ) | ||||||||||||||
Non-GAAP net income available to Virtusa common stockholders | $ | 14,585 | $ | 11,034 | $ | 32,303 | $ | 24,733 | ||||||||||||||
GAAP diluted earnings (loss) per share (f) | $ | (0.38 | ) | $ | 0.15 | $ | (0.15 | ) | $ | 0.05 | ||||||||||||
Effect of stock-based compensation expense (g) | 0.28 | 0.16 | 0.63 | 0.56 | ||||||||||||||||||
Effect of acquisition-related charges and restructuring charges(a) (g) | 0.10 | 0.17 | 0.28 | 0.39 | ||||||||||||||||||
Effect of foreign currency transaction (gains) losses(b) (g) | (0.08 | ) | 0.04 | (0.03 | ) | 0.09 | ||||||||||||||||
Effect of tax impact from Tax Act (g) (h) | 0.60 | - | 0.62 | - | ||||||||||||||||||
Effect of tax adjustments (c) (g) | (0.10 | ) | (0.14 | ) | (0.31 | ) | (0.24 | ) | ||||||||||||||
Effect of noncontrolling interest (d) (g) | (0.02 | ) | (0.01 | ) | (0.04 | ) | (0.03 | ) | ||||||||||||||
Effect on dividend on Series A Convertible Preferred Stock (f) (g) | 0.03 | - | 0.07 | - | ||||||||||||||||||
Effect of change in dilutive shares for non-GAAP (f) | 0.04 | - | 0.01 | - | ||||||||||||||||||
Non-GAAP diluted earnings per share (e) (g) | $ | 0.47 | $ | 0.37 | $ | 1.08 | $ | 0.82 | ||||||||||||||
(a) Acquisition-related charges include, when applicable, amortization of purchased intangibles, external deal costs, acquisition-related retention bonuses, changes in the fair value of contingent consideration liabilities, charges for impairment of acquired intangible assets and other acquisition-related costs including integration expenses consisting of outside professional and consulting services and direct and incremental travel costs. Restructuring charges, when applicable, include termination benefits, as well as certain professional fees related to the restructuring. The following table provides the details of the acquisition-related charges and restructuring charges: |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
Amortization of intangible assets | $ | 2,568 | $ | 2,403 | $ | 7,671 | $ | 7,146 | |||||||||
Acquisition & integration costs | $ | 431 | $ | 827 | $ | 431 | $ | 2,755 | |||||||||
Restructuring charges | $ | 228 | $ | 1,886 | $ | 985 | $ | 1,886 | |||||||||
Total | $ | 3,227 | $ | 5,116 | $ | 9,087 | $ | 11,787 | |||||||||
(b) Foreign currency transaction gains and losses are inclusive of gains and losses on related foreign exchange forward contracts not designated as hedging instruments for accounting purposes. |
(c) Tax adjustments reflect the tax effect of the non-GAAP adjustments using the tax rates at which these adjustments are expected to be realized for the respective periods. |
(d) Noncontrolling interest represents the minority shareholders interest of Polaris |
(e) Non-GAAP diluted earnings per share is subject to rounding |
(f) During the three and nine months ended December 31, 2017, the weighted average shares outstanding of Series A Convertible Preferred Stock of 3,000,000 and 2,637,363, respectively, were excluded from the calculations of GAAP diluted earnings per share as their effect would have been anti-dilutive using the if-converted method. |
The following table provides the non-GAAP net income available to
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Non-GAAP net income available to Virtusa common stockholders | $ | 14,585 | $ | 11,034 | $ | 32,303 | $ | 24,733 | ||||||||||
Add: | Dividends and accretion on Series A Convertible Preferred Stock | $ | 1,087 | $ | - | $ | 2,175 | $ | - | |||||||||
Non-GAAP net income available to Virtusa common stockholders and |
$ | 15,672 | $ | 11,034 | $ | 34,478 | $ | 24,733 | ||||||||||
GAAP dilutive weighted average shares outstanding | 29,295,730 | 30,151,590 | 29,387,977 | 30,129,378 | ||||||||||||||
Add: |
Dilutive effect of employee stock options and unvested restricted |
709,961 | - | 637,830 | - | |||||||||||||
Add: | Series A Convertible Preferred Stock as converted | 3,000,000 | - | 2,000,000 | - | |||||||||||||
Non-GAAP dilutive weighted average shares outstanding | 33,005,691 | 30,151,590 | 32,025,807 | 30,129,378 | ||||||||||||||
(g) To the extent the Series A Convertible Preferred Stock is dilutive using the if-converted method, the Series A Convertible Preferred Stock is included in the weighted average shares outstanding to determine non-GAAP diluted earnings per share. |
(h) The U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) in December 2017. This resulted in a tax expense of $19.8 million for the three months ended December 31, 2017, comprised of a provisional repatriation tax expense of $14.6 million and a provisional net deferred tax expense of $5.2 million. The adjustment to GAAP net income (loss) available to Virtusa common stockholders only includes these provisional impacts. It does not include the ongoing impacts of the lower U.S. statutory rate on current year earnings. |
Footnotes
(1) To determine sequential revenue change in constant currency for the
Company's third quarter of fiscal 2018, revenue from entities reporting
in
Average U.S. Dollar Exchange Rate | ||||||||||
For the Three Months Ended | ||||||||||
December 31, 2016 | September 30, 2017 | December 31, 2017 | ||||||||
GBP | 1.24 | 1.31 | 1.33 | |||||||
Euro | 1.08 | 1.18 | 1.18 | |||||||
SEK | 0.11 | 0.12 | 0.12 | |||||||
(2) The Company considers the total measure of cash, cash equivalents, short-term and long-term investments to be an important indicator of the Company's overall liquidity. All of the Company's investments are classified as available-for-sale, including the Company's long-term investments which consist of fixed income securities, including government agency bonds and municipal and corporate bonds, which meet the credit rating and diversification requirements of the Company's investment policy as approved by the Company's audit committee and board of directors.
(3) In accordance with ASC 260, Earnings Per Share (EPS), we excluded potential dilutive common shares from our third quarter EPS computations due to the anti-dilutive impact that these shares would have had due to the net loss for this period. However, as we are forecasting to be in a net income position for the full fiscal year 2018, we included these potential dilutive common shares in our EPS computation for full fiscal year 2018. Therefore, fiscal year 2018 forecasted US GAAP EPS will not equal the sum of the Company’s 2018 quarterly EPS computations.
(4) Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year to date basis.
(5) On
Forward-Looking Statements
This press release contains certain “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended, including statements
regarding, the benefits of Virtusa’s organizational changes,
management's forecast of financial performance, the growth of our
business and management's plans, objectives, and strategies. These
forward-looking statements include, but are not limited to, plans,
objectives, expectations and intentions and other statements contained
in this press release that are not historical facts, and statements
identified by words such as “expects,” “anticipates,” “intends,”
“plans,” “believes,” “see,” “seeks,” “estimates,” “will,” “should,”
“may,” “confident,” “positions,” “look forward to,” and variations of
such words or words of similar meaning and the use of future dates.
These forward-looking statements reflect our current views about our
plans, intentions, expectations, strategies and prospects, including
with respect to the delisting of Polaris, our intention to enter into an
interest rate swap agreement and our growth rate, which are based on the
information currently available to us and on assumptions we have made.
Although we believe that our plans, intentions, expectations, strategies
and prospects as reflected in or suggested by those forward-looking
statements are reasonable, we can give no assurance that these plans,
intentions, expectations or strategies will be attained or achieved.
Furthermore, actual results may differ materially from those described
in the forward-looking statements and will be affected by a variety of
risks and factors that are beyond our control including, without
limitation: any increase in Virtusa’s borrowings in connection with the
acquisition of the balance of shares in Polaris and Virtusa’s ability to
service such indebtedness with future cash flows; Virtusa’s failure to
realize the intended benefits of the Polaris delisting transaction,
including the inability to integrate Virtusa’s and Polaris’ business and
operations to realize the anticipated synergies and cost savings in the
expected amounts or within the anticipated time frames or cost
expectations or at all;
Virtusa Corporation and Subsidiaries | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(In thousands, unaudited) | ||||||||
December 31, 2017 | March 31, 2017 | |||||||
Assets: | ||||||||
Cash and cash equivalents | $226,718 | $144,908 | ||||||
Short-term investments | 66,539 | 72,028 | ||||||
Accounts receivable, net | 138,294 | 135,453 | ||||||
Unbilled accounts receivable | 67,196 | 66,122 | ||||||
Prepaid expenses | 32,420 | 32,751 | ||||||
Restricted cash | 265 | 174 | ||||||
Other current assets | 23,641 | 28,806 | ||||||
Total current assets | 555,073 | 480,242 | ||||||
Property and equipment, net | 120,395 | 118,890 | ||||||
Investments accounted for using equity method | 1,645 | 1,708 | ||||||
Long-term investments | 10,676 | 20,057 | ||||||
Deferred income taxes | 26,774 | 23,093 | ||||||
Goodwill | 214,265 | 211,089 | ||||||
Intangible assets, net | 52,215 | 58,361 | ||||||
Other long-term assets | 12,514 | 9,980 | ||||||
Total assets | $993,557 | $923,420 | ||||||
Liabilities: | ||||||||
Accounts payable | $22,069 | $20,514 | ||||||
Accrued employee compensation and benefits | 55,684 | 52,582 | ||||||
Deferred revenue | 9,914 | 7,479 | ||||||
Accrued expenses and other | 39,261 | 33,251 | ||||||
Current portion of long-term debt | - | 8,870 | ||||||
Income taxes payable | 4,008 | 3,066 | ||||||
Total current liabilities | 130,936 | 125,762 | ||||||
Deferred income taxes | 23,155 | 26,682 | ||||||
Long-term debt, less current portion | 130,439 | 176,722 | ||||||
Long-term liabilities | 23,244 | 9,238 | ||||||
Total liabilities | 307,774 | 338,404 | ||||||
Series A Convertible Preferred Stock | 106,955 | - | ||||||
Virtusa stockholders' equity | 483,606 | 497,032 | ||||||
Noncontrolling interest | 95,222 | 87,984 | ||||||
Stockholders' equity | 578,828 | 585,016 | ||||||
Total liabilities and stockholders' equity | $993,557 | $923,420 | ||||||
Virtusa Corporation and Subsidiaries | ||||||||||||||
Consolidated Statements of Income (Loss) | ||||||||||||||
(In thousands except share and per share amounts, unaudited) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||
Revenue | $263,809 | $217,209 | $739,328 | $632,769 | ||||||||||
Costs of revenue | 183,420 | 154,847 | 528,103 | 460,776 | ||||||||||
Gross profit | 80,389 | 62,362 | 211,225 | 171,993 | ||||||||||
Total operating expenses | 66,726 | 55,904 | 181,213 | 163,846 | ||||||||||
Income from operations | 13,663 | 6,458 | 30,012 | 8,147 | ||||||||||
Other income (expense): | ||||||||||||||
Interest income | 1,080 | 1,021 | 3,012 | 3,050 | ||||||||||
Interest expense | (1,305) | (1,920) | (4,376) | (5,657) | ||||||||||
Foreign currency transaction gains (losses) | 2,576 | (1,252) | 1,019 | (2,802) | ||||||||||
Other, net | 492 | (180) | 1,376 | 371 | ||||||||||
Total other income (expense) | 2,843 | (2,331) | 1,031 | (5,038) | ||||||||||
Income before income tax expense | 16,506 | 4,127 | 31,043 | 3,109 | ||||||||||
Income tax expense (benefit) | 24,427 | (1,414) | 26,725 | (1,378) | ||||||||||
Net income (loss) | (7,921) | 5,541 | 4,318 | 4,487 | ||||||||||
Less: Net income attributable to noncontrolling interests, net of tax | 2,134 | 1,106 | 5,947 | 3,094 | ||||||||||
Net income (loss) available to Virtusa stockholders | (10,055) | $4,435 | ($1,629) | $1,393 | ||||||||||
Less: Series A Convertible Preferred Stock dividend and accretion | 1,087 | - | 2,875 | - | ||||||||||
Net income (loss) available to Virtusa common stockholders | (11,142) | $4,435 | (4,504) | $1,393 | ||||||||||
Basic earnings (loss) per share available to Virtusa common stockholders | ($0.38) | $0.15 | ($0.15) | $0.05 | ||||||||||
Diluted earnings (loss) per share available to Virtusa common stockholders | ($0.38) | $0.15 | ($0.15) | $0.05 | ||||||||||
Weighted average number of common shares outstanding | ||||||||||||||
Basic | 29,295,730 | 29,704,526 | 29,387,977 | 29,602,331 | ||||||||||
Diluted | 29,295,730 | 30,151,590 | 29,387,977 | 30,129,378 | ||||||||||
Virtusa Corporation and Subsidiaries | |||||||
Consolidated Statement of Cash Flows | |||||||
(In thousands, unaudited) | |||||||
Nine Months Ended | |||||||
December 31, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net income | $4,318 | $4,487 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 20,711 | 19,185 | |||||
Share-based compensation expense | 20,048 | 17,023 | |||||
Provision for doubtful accounts, net | 1,025 | 702 | |||||
Gain on disposal of property and equipment | (40) | (388) | |||||
Foreign currency transaction (gains) losses, net | (1,019) | 2,802 | |||||
Amortization of discounts and premiums on investments | 258 | 807 | |||||
Amortization of debt issuance cost | 847 | 847 | |||||
Deferred income taxes, net | 5,219 | 454 | |||||
Net changes in operating assets and liabilities: | |||||||
Accounts receivable and unbilled receivable | (6,754) | (3,669) | |||||
Prepaid expenses and other current assets | (3,860) | (4,422) | |||||
Other long-term assets | (2,760) | 10,753 | |||||
Accounts payable | (352) | 7,356 | |||||
Accrued employee compensation and benefits | 2,167 | (12,104) | |||||
Accrued expenses and other current liabilities | 6,855 | 1,033 | |||||
Income taxes payable | (4,300) | (14,593) | |||||
Other long-term liabilities | 11,818 | (5,459) | |||||
Net cash provided by operating activities | 54,181 | 24,814 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sale of property and equipment | 217 | 2,536 | |||||
Purchase of short-term investments | (88,033) | (100,131) | |||||
Proceeds from sale or maturity of short-term investments | 118,614 | 99,888 | |||||
Purchase of long-term investments | (16,772) | (28,984) | |||||
Proceeds from sale or maturity of long-term investments | 1,606 | 7,116 | |||||
(Increase) decrease in restricted cash | (119) | 92,651 | |||||
Business acquisition, net of cash acquired | (600) | (3,460) | |||||
Purchase of property and equipment | (11,242) | (10,947) | |||||
Net cash provided by investing activities | 3,671 | 58,669 | |||||
Cash flows from financing activities: | |||||||
Proceeds from exercise of common stock options | 3,351 | 816 | |||||
Proceeds from exercise of subsidiary stock options | 636 | 357 | |||||
Payment of debt | (81,000) | (7,500) | |||||
Payments of withholding taxes related to net share settlements of restricted stock | (2,753) | (3,803) | |||||
Series A Convertible Preferred Stock proceeds, net of issuance costs of $1,154 | 106,846 | - | |||||
Repurchase of common stock | (30,000) | - | |||||
Payment of contingent consideration related to acquisition | - | (830) | |||||
Acquisition of noncontrolling interest | - | (89,147) | |||||
Payment of other noncontrolling interest | - | (50) | |||||
Borrowings on revolving credit facility | 25,000 | - | |||||
Proceeds from subsidiary stock sale | - | 7,236 | |||||
Principal payments on capital lease obligation | (161) | (118) | |||||
Payment of dividend on Series A Convertible Preferred Stock | (2,081) | - | |||||
Net cash provided by (used in) financing activities | 19,838 | (93,039) | |||||
Effect of exchange rate changes on cash and cash equivalents | 4,120 | (5,552) | |||||
Net increase (decrease) in cash and cash equivalents | 81,810 | (15,108) | |||||
Cash and cash equivalents, beginning of period | 144,908 | 148,986 | |||||
Cash and cash equivalents, end of period | $226,718 | $133,878 | |||||
Supplemental Non-GAAP Financial Information as of December 31, 2017 and 2016 | |||||||
Reconciliation from cash and cash equivalents to total cash and
cash equivalents, short- |
|||||||
Cash and cash equivalents, end of period | $226,718 | $133,878 | |||||
Short-term investments | 66,539 | 80,731 | |||||
Long-term investments | 10,676 | 22,547 | |||||
Total short-term and long-term investments, end of period | 77,215 | 103,278 | |||||
Total cash and cash equivalents, short-term and long-term investments | $303,933 | $237,156 | |||||
Virtusa Corporation and Subsidiaries |
|||||||||||||
Reconciliation of Non-GAAP Guidance** | |||||||||||||
Three months ending | Fiscal Year ending | ||||||||||||
March 31, 2018 | March 31, 2018 | ||||||||||||
Low |
High |
Low |
High |
||||||||||
GAAP diluted earnings per share | $0.21 | $0.27 | $0.06 | $0.12 | |||||||||
Effect of stock-based compensation expense | 0.23 | 0.23 | 0.85 | 0.85 | |||||||||
Effect of acquisition-related charges and restructuring charges | 0.09 | 0.09 | 0.37 | 0.37 | |||||||||
Effect of foreign currency transaction (gains) losses | 0.00 | 0.00 | (0.03) | (0.03) | |||||||||
Effect of change in dilutive shares for non-GAAP | (0.02) | (0.02) | (0.01) | (0.01) | |||||||||
Effect of tax impact from Tax Act | 0.00 | 0.00 | 0.61 | 0.61 | |||||||||
Effect of tax adjustments | (0.12) | (0.12) | (0.42) | (0.42) | |||||||||
Effect of noncontrolling interest | (0.01) | (0.01) | (0.05) | (0.05) | |||||||||
Effect on dividend on Series A Convertible Preferred Stock | 0.03 | 0.03 | 0.10 | 0.10 | |||||||||
Effect of Unamortized Debt issuance cost write off | 0.10 | 0.10 | 0.11 | 0.11 | |||||||||
Non-GAAP diluted earnings per share# | $0.51 | $0.57 | $1.59 | $1.65 | |||||||||
Weighted average diluted shares outstanding | |||||||||||||
- GAAP | 30.4 | 30.4 | 30.1 | 30.1 | |||||||||
- Non-GAAP | 33.4 | 33.4 | 32.4 | 32.4 | |||||||||
** | EPS impact is subject to rounding | |
# | To the extent the Series A Convertible Preferred Stock is dilutive using the if-converted method, the Series A Convertible Preferred Stock is included in the weighted average shares outstanding to determine non-GAAP diluted earnings per share for each of the non-GAAP adjustments | |
View source version on businesswire.com: http://www.businesswire.com/news/home/20180208005565/en/
Source:
Media:
Greenough
Amy Legere, 617-275-6517
alegere@greenough.biz
or
Investors:
ICR
William
Maina, 646-277-1236
william.maina@icrinc.com