Virtusa Announces Fourth Quarter and Fiscal Year 2018 Consolidated Financial Results
-
Fourth quarter fiscal 2018 revenue of
$281.3 million , increased 6.6% sequentially and 24.5% year-over-year, inclusive of$5.7 million from the eTouch acquisition. -
Fourth quarter fiscal 2018 diluted EPS was
$0.06 on a GAAP basis, and$0.55 on a non-GAAP basis, up 17% sequentially. -
Fiscal year 2018 revenue of
$1,020.7 million increased 18.9% year-over-year. -
Fiscal year 2018 diluted EPS was
$(0.09) on a GAAP basis, inclusive of an impact from U.S. tax reform of($0.77) . Non-GAAP diluted EPS was$1.63 , up 30.4% year-over-year. - Integration of eTouch acquisition on track, strengthening Virtusa’s leadership in digital engineering and deepening the Company’s tech domain expertise.
Fourth Quarter Fiscal 2018 Consolidated Financial Results
Revenue for the fourth quarter of fiscal 2018 was
GAAP net income available to common shareholders for the fourth 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 was
Fiscal Year 2018 Consolidated Financial Results
For the fiscal year ended
GAAP net loss available to common shareholders was
Non-GAAP Results:
Non-GAAP income from operations was
Non-GAAP net income was
Balance Sheet and Cash Flow
The Company ended fiscal year 2018 with
Management Commentary
Financial Outlook
-
First quarter fiscal 2019 revenue is expected to be in the range of
$293.5 to $301.5 million . GAAP diluted EPS is expected to be in the range of$0.09 to $0.13 . Non-GAAP diluted EPS is expected to be in the range of$0.45 to $0.51 . -
Fiscal year 2019 revenue is expected to be in the range of
$1,230 to$1,270 million . GAAP diluted EPS is expected to be in the range of$0.50 to $0.66 . Non-GAAP diluted EPS is expected to be in the range of$2.08 to $2.32 .
In accordance with US GAAP,
- Fourth quarter GAAP Income 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. Fourth 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 preferred shares will be anti-dilutive in fiscal 2019. Thus, in determining full fiscal year 2019 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.
- Non-GAAP EPS guidance was calculated under the assumption that these convertible preferred shares will be dilutive in fiscal year 2019. Thus, in determining full fiscal year 2019 non-GAAP EPS guidance, dividends and accretion on the convertible preferred shares are excluded from net income available to common stockholders and the impact of the convertible preferred shares are included in the weighted average shares outstanding.
The Company’s first quarter and fiscal year 2019 diluted GAAP EPS
estimates are both based on average share counts of approximately 30.5
million (assuming no further exercises of stock-based awards). The
Company’s first quarter and fiscal year 2019 diluted Non-GAAP EPS
estimates are both based on average share counts of approximately 33.5
million (assuming no further exercises of stock-based awards). GAAP and
Non-GAAP average share counts assume a stock price of
Conference Call and Webcast
About
Using a combination of digital strategy, digital engineering, business
implementation, and IT platform modernization services,
Holding a proven record of success across industries,
Founded in 1996 and headquartered in
© 2018
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, non-recurring third party financing costs, 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, non-recurring third party financing costs, 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, non-recurring third party financing costs, 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 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 March 31, | Fiscal Year Ended March 31, | ||||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
| GAAP income from operations | $ | 16,375 | $ | 10,224 | $ | 46,387 | $ | 18,371 | |||||||||||
| Add: Stock-based compensation expense | 7,363 | 5,100 | 27,411 | 22,123 | |||||||||||||||
| Add: Acquisition-related charges and restructuring charges(a) | 4,191 | 3,430 | 13,278 | 15,217 | |||||||||||||||
| Non-GAAP income from operations | $ | 27,929 | $ | 18,754 | $ | 87,076 | $ | 55,711 | |||||||||||
| GAAP operating margin | 5.8 | % | 4.5 | % | 4.5 | % | 2.1 | % | |||||||||||
| Effect of above adjustments to income from operations | 4.1 | % | 3.8 | % | 4.0 | % | 4.4 | % | |||||||||||
| Non-GAAP operating margin | 9.9 | % | 8.3 | % | 8.5 | % | 6.5 | % | |||||||||||
| GAAP net income (loss) available to Virtusa common stockholders | $ | 1,795 | $ | 10,465 | $ | (2,709 | ) | $ | 11,858 | ||||||||||
| Add: Stock-based compensation expense | 7,363 | 5,100 | 27,411 | 22,123 | |||||||||||||||
| Add: Acquisition-related charges and restructuring charges(a) | 4,259 | 3,430 | 13,346 | 15,217 | |||||||||||||||
| Add: Non-recurring third party financing costs (i) | 701 | - | 701 | - | |||||||||||||||
| Add: Foreign currency transaction (gains) losses(b) | 4,562 | (5,811 | ) | 3,543 | (3,009 | ) | |||||||||||||
| Add: Impact from Tax Act(h) | 2,909 | - | 22,724 | - | |||||||||||||||
| Tax adjustments (c) | (4,239 | ) | 536 | (14,037 | ) | (6,861 | ) | ||||||||||||
| Noncontrolling interest, net of taxes (d) | (143 | ) | (824 | ) | (1,469 | ) | (1,699 | ) | |||||||||||
| Non-GAAP net income available to Virtusa common stockholders | $ | 17,207 | $ | 12,896 | $ | 49,510 | $ | 37,629 | |||||||||||
| GAAP diluted earnings (loss) per share (f) | $ | 0.06 | $ | 0.34 | $ | (0.09 | ) | $ | 0.39 | ||||||||||
| Effect of stock-based compensation expense (g) | 0.22 | 0.17 | 0.85 | 0.73 | |||||||||||||||
| Effect of acquisition-related charges and restructuring charges(a) (g) | 0.13 | 0.12 | 0.41 | 0.51 | |||||||||||||||
| Effect of non-recurring third party financing costs (i) (g) | 0.02 | - | 0.02 | - | |||||||||||||||
| Effect of foreign currency transaction (gains) losses(b) (g) | 0.14 | (0.19 | ) | 0.11 | (0.10 | ) | |||||||||||||
| Effect of tax impact from Tax Act (g) (h) | 0.09 | - | 0.70 | - | |||||||||||||||
| Effect of tax adjustments (c) (g) | (0.13 | ) | 0.02 | (0.43 | ) | (0.22 | ) | ||||||||||||
| Effect of noncontrolling interest (d) (g) | - | (0.03 | ) | (0.05 | ) | (0.06 | ) | ||||||||||||
| Effect on dividend on Series A Convertible Preferred Stock (f) (g) | 0.03 | - | 0.10 | - | |||||||||||||||
| Effect of change in dilutive shares for non-GAAP (f) | (0.01 | ) | - | 0.01 | - | ||||||||||||||
| Non-GAAP diluted earnings per share (e) (g) | $ | 0.55 | $ | 0.43 | $ | 1.63 | $ | 1.25 | |||||||||||
(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, changes in fair value related to deferred acquisition payments, 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 March 31, | Fiscal Year Ended March 31, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Amortization of intangible assets | $ | 2,418 | $ | 2,377 | $ | 10,089 | $ | 9,523 | |||||||
| Acquisition & integration costs | $ | 1,458 | $ | 540 | $ | 1,889 | $ | 3,296 | |||||||
| Restructuring charges | $ | 383 | $ | 513 | $ | 1,368 | $ | 2,398 | |||||||
| Total | $ | 4,259 | $ | 3,430 | $ | 13,346 | $ | 15,217 | |||||||
| (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 twelve months ended March 31, 2018, the
weighted average shares outstanding of Series A Convertible
Preferred Stock of 3,000,000 and 2,728,022 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 Virtusa common stockholders and non-GAAP dilutive weighted average shares outstanding using if-converted method to calculate the non-GAAP diluted earnings per share for the three and nine months ended March 31, 2018 and 2017: |
|
| Three Months Ended March 31, | Fiscal Year Ended March 31, | |||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||
| Non-GAAP net income available to Virtusa common stockholders | $ | 17,207 | $ | 12,896 | $ | 49,510 | $ | 37,629 | ||||||
| Add: | Dividends and accretion on Series A Convertible Preferred Stock | $ | 1,088 | $ | - | $ | 3,262 | $ | - | |||||
| Non-GAAP net income available to Virtusa common stockholders and assumed conversion | $ | 18,295 | $ | 12,896 | $ | 52,772 | $ | 37,629 | ||||||
| GAAP dilutive weighted average shares outstanding | 30,427,258 | 30,151,590 | 29,397,350 | 30,129,378 | ||||||||||
| Add: | Dilutive effect of employee stock options and unvested restricted stock awards and restricted stock units | - | - | 728,820 | - | |||||||||
| Add: | Series A Convertible Preferred Stock as converted | 3,000,000 | - | 2,250,000 | - | |||||||||
| Non-GAAP dilutive weighted average shares outstanding | 33,427,258 | 30,151,590 | 32,376,170 | 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 $22.7 million for the fiscal year ended March 31, 2018, comprised of a provisional repatriation tax expense of $17.8 million and a provisional net deferred tax expense of $4.9 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. The GAAP earnings (loss) per share impact on the Tax Act adjustment using GAAP weighted average shares outstanding was $(0.77). The non-GAAP earnings per share impact on the Tax Act adjustment using non-GAAP weighted average shares outstanding was $(0.70). | |
| (i) Non-recurring third party financing costs related to the new credit facility | |
Footnotes
(1) To determine sequential revenue change in constant currency for the
Company's fourth quarter of fiscal 2018, revenue from entities reporting
in
| Average U.S. Dollar Exchange Rate | |||||||||||
| For the Three Months Ended | For the Twelve Months Ended | ||||||||||
| March 31, 2017 | December 31, 2017 | March 31, 2018 | March 31, 2017 | March 31, 2018 | |||||||
| GBP | 1.24 | 1.33 | 1.40 | 1.30 | 1.33 | ||||||
| Euro | 1.07 | 1.18 | 1.23 | 1.10 | 1.18 | ||||||
| SEK | 0.11 | 0.12 | 0.12 | 0.11 | 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) 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.
(4) 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, 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) | ||||||
| March 31, 2018 | March 31, 2017 | |||||
| Assets: | ||||||
| Cash and cash equivalents | $ | 194,897 | $ | 144,908 | ||
| Short-term investments | 45,900 | 72,028 | ||||
| Accounts receivable, net | 151,455 | 135,453 | ||||
| Unbilled accounts receivable | 103,829 | 66,122 | ||||
| Prepaid expenses | 31,724 | 32,751 | ||||
| Restricted cash | 301 | 174 | ||||
| Other current assets | 21,229 | 28,806 | ||||
| Total current assets | 549,335 | 480,242 | ||||
| Property and equipment, net | 121,565 | 118,890 | ||||
| Investments accounted for using equity method | 1,588 | 1,708 | ||||
| Long-term investments | 4,140 | 20,057 | ||||
| Deferred income taxes | 31,528 | 23,093 | ||||
| Goodwill | 297,251 | 211,089 | ||||
| Intangible assets, net | 96,001 | 58,361 | ||||
| Other long-term assets | 11,772 | 9,980 | ||||
| Total assets | $ | 1,113,180 | $ | 923,420 | ||
| Liabilities: | ||||||
| Accounts payable | $ | 29,541 | $ | 20,514 | ||
| Accrued employee compensation and benefits | 71,500 | 52,582 | ||||
| Deferred revenue | 7,908 | 7,479 | ||||
| Accrued expenses and other | 91,306 | 33,251 | ||||
| Current portion of long-term debt | 11,407 | 8,870 | ||||
| Income taxes payable | 5,038 | 3,066 | ||||
| Total current liabilities | 216,700 | 125,762 | ||||
| Deferred income taxes | 21,341 | 26,682 | ||||
| Long-term debt, less current portion | 288,227 | 176,722 | ||||
| Long-term liabilities | 43,833 | 9,238 | ||||
| Total liabilities | 570,101 | 338,404 | ||||
| Series A Convertible Preferred Stock | 106,996 | - | ||||
| Virtusa stockholders' equity | 418,623 | 497,032 | ||||
| Noncontrolling interest | 17,460 | 87,984 | ||||
| Stockholders' equity | 436,083 | 585,016 | ||||
| Total liabilities and stockholders' equity | $ | 1,113,180 | $ | 923,420 | ||
| Virtusa Corporation and Subsidiaries | ||||||||||||||||
| Consolidated Statements of Income (Loss) | ||||||||||||||||
| (In thousands except share and per share amounts, unaudited) | ||||||||||||||||
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Revenue | $ | 281,341 | $ | 225,962 | $ | 1,020,669 | $ | 858,731 | ||||||||
| Costs of revenue | 197,342 | 160,174 | 725,445 | 620,950 | ||||||||||||
| Gross profit | 83,999 | 65,788 | 295,224 | 237,781 | ||||||||||||
| Total operating expenses | 67,624 | 55,564 | 248,837 | 219,410 | ||||||||||||
| Income from operations | 16,375 | 10,224 | 46,387 | 18,371 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 1,252 | 6,722 | 4,264 | 4,115 | ||||||||||||
| Interest expense | (3,258 | ) | (7,682 | ) | (7,634 | ) | (7,682 | ) | ||||||||
| Foreign currency transaction (losses) gains | (4,562 | ) | 5,811 | (3,543 | ) | 3,009 | ||||||||||
| Other, net | 986 | 634 | 2,362 | 1,005 | ||||||||||||
| Total other income (expense) | (5,582 | ) | 5,485 | (4,551 | ) | 447 | ||||||||||
| Income before income tax expense | 10,793 | 15,709 | 41,836 | 18,818 | ||||||||||||
| Income tax expense | 6,163 | 3,939 | 32,888 | 2,561 | ||||||||||||
| Net income | 4,630 | 11,770 | 8,948 | 16,257 | ||||||||||||
| Less: net income attributable to noncontrolling interests, net of tax | 1,747 | 1,305 | 7,694 | 4,399 | ||||||||||||
| Net income available to Virtusa stockholders | 2,883 | $ | 10,465 | $ | 1,254 | $ | 11,858 | |||||||||
| Less: Series A Convertible Preferred Stock dividends and accretion | 1,088 | - | 3,963 | - | ||||||||||||
| Net income (loss) available to Virtusa common stockholders | 1,795 | $ | 10,465 | (2,709 | ) | $ | 11,858 | |||||||||
| Basic earnings (loss) per share available to Virtusa common stockholders | $ | 0.06 | $ | 0.35 | ($0.09 | ) | $ | 0.40 | ||||||||
| Diluted earnings (loss) per share available to Virtusa common stockholders | $ | 0.06 | $ | 0.34 | ($0.09 | ) | $ | 0.39 | ||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 29,425,468 | 29,793,111 | 29,397,350 | 29,650,026 | ||||||||||||
| Diluted | 30,427,258 | 30,472,547 | 29,397,350 | 30,215,171 | ||||||||||||
| Virtusa Corporation and Subsidiaries | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (In thousands, unaudited) | ||||||||
| Year Ended | ||||||||
| March 31, | ||||||||
| 2018 | 2017 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 8,948 | $ | 16,257 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 27,537 | 25,852 | ||||||
| Share-based compensation expense | 27,411 | 22,123 | ||||||
| Provision for doubtful accounts, net | 1,248 | 1,015 | ||||||
| Gain on disposal of property and equipment | (10 | ) | (434 | ) | ||||
| Deferred income taxes, net | (9,946 | ) | (10,856 | ) | ||||
| Foreign currency transaction losses (gains), net | 3,543 | (3,009 | ) | |||||
| Amortization of discounts and premiums on investments | 313 | 905 | ||||||
| Amortization of debt issuance cost | 1,057 | 1,129 | ||||||
| Net changes in operating assets and liabilities: | ||||||||
| Accounts receivable and unbilled receivable | (36,542 | ) | (13,508 | ) | ||||
| Prepaid expenses and other current assets | (9,260 | ) | 1,009 | |||||
| Other long-term assets | (1,377 | ) | 8,216 | |||||
| Accounts payable | 4,413 | (6,482 | ) | |||||
| Accrued employee compensation and benefits | 13,772 | (2,206 | ) | |||||
| Accrued expenses and other current liabilities | 3,931 | 1,851 | ||||||
| Income taxes payable | 12,683 | (8,729 | ) | |||||
| Other long-term liabilities | 14,978 | (5,522 | ) | |||||
| Net cash provided by operating activities | 62,699 | 27,611 | ||||||
| Cash flows from investing activities: | ||||||||
| Proceeds from sale of property and equipment | 261 | 2,631 | ||||||
| Purchase of short-term investments | (100,486 | ) | (112,652 | ) | ||||
| Proceeds from sale or maturity of short-term investments | 157,194 | 131,116 | ||||||
| Purchase of long-term investments | (16,772 | ) | (35,099 | ) | ||||
| Proceeds from sale or maturity of long-term investments | 1,606 | 7,116 | ||||||
| (Increase) decrease in restricted cash | (158 | ) | 92,704 | |||||
| Business acquisition, net of cash acquired | (78,376 | ) | (3,460 | ) | ||||
| Purchase of property and equipment | (16,096 | ) | (15,341 | ) | ||||
| Net cash (used in) provided by investing activities | (52,827 | ) | 67,015 | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from exercise of common stock options | 4,063 | 1,479 | ||||||
| Proceeds from exercise of subsidiary stock options | 1,837 | 1,166 | ||||||
| Proceeds from debt | 141,000 | - | ||||||
| Payment of debt | (81,000 | ) | (10,000 | ) | ||||
| Payment of debt issuance cost | (2,716 | ) | ||||||
| Borrowings on revolving credit facility | 75,000 | - | ||||||
| Payment of revolving credit facility | (20,000 | ) | - | |||||
| Payment of contingent consideration related to acquisition | - | (830 | ) | |||||
| Acquisition of noncontrolling interest | (147,026 | ) | (89,147 | ) | ||||
| Payment of other noncontrolling interest | (42 | ) | (50 | ) | ||||
| Proceeds from subsidiary stock sale | - | 7,236 | ||||||
| Principal payments on capital lease obligation | (220 | ) | (140 | ) | ||||
| Payments of withholding taxes related to net share settlements of restricted stock | (7,173 | ) | (6,099 | ) | ||||
| Series A Convertible Preferred Stock proceeds, net of issuance costs of $1,154 | 106,846 | - | ||||||
| Repurchase of common stock | (30,000 | ) | - | |||||
| Payment of dividend on Series A Convertible Preferred Stock | (3,127 | ) | - | |||||
| Net cash provided by (used in) financing activities | 37,442 | (96,385 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | 2,675 | (2,319 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 49,989 | (4,078 | ) | |||||
| Cash and cash equivalents, beginning of year | 144,908 | 148,986 | ||||||
| Cash and cash equivalents, end of year | $ | 194,897 | $ | 144,908 | ||||
| Supplemental Non-GAAP Financial Information as of March 31, 2018 and 2017 | ||||||||
| Reconciliation from cash and cash equivalents to total cash and cash equivalents, short-term investments and long-term investments: | ||||||||
| Cash and cash equivalents, end of year | $ | 194,897 | $ | 144,908 | ||||
| Short-term investments | 45,900 | 72,028 | ||||||
| Long-term investments | 4,140 | 20,057 | ||||||
| Total short-term and long-term investments, end of year | 50,040 | 92,085 | ||||||
| Total cash and cash equivalents, short-term and long-term investments | $ | 244,937 | $ | 236,993 | ||||
| Virtusa Corporation and Subsidiaries | ||||||||||
| Reconciliation of Non-GAAP Guidance** | ||||||||||
| Three months ending | Fiscal Year ending | |||||||||
| June 30, 2018 | March 31, 2019 | |||||||||
| Low | High | Low | High | |||||||
| GAAP diluted earnings per share | $0.09 | $0.13 | $0.50 | $0.66 | ||||||
| Effect of stock-based compensation expense | 0.19 | 0.19 | 0.92 | 0.92 | ||||||
| Effect of acquisition-related charges and restructuring charges | 0.18 | 0.18 | 0.71 | 0.71 | ||||||
| Effect of foreign currency transaction (gains) losses | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Effect of change in dilutive shares for non-GAAP | (0.01) | (0.01) | (0.04) | (0.06) | ||||||
| Effect of tax impact from Tax Act | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Effect of tax adjustments | (0.04) | (0.02) | (0.13) | (0.03) | ||||||
| Effect of noncontrolling interest | (0.00) | (0.00) | (0.01) | (0.01) | ||||||
| Effect on dividend on Series A Convertible Preferred Stock | 0.03 | 0.03 | 0.13 | 0.13 | ||||||
| Non-GAAP diluted earnings per share# | $0.45 | $0.51 | $2.08 | $2.32 | ||||||
| Weighted average diluted shares outstanding | ||||||||||
| - GAAP | 30.5 | 30.5 | 30.5 | 30.5 | ||||||
| - Non-GAAP | 33.5 | 33.5 | 33.5 | 33.5 | ||||||
| ** 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: https://www.businesswire.com/news/home/20180515005378/en/
Source:
Media:
Greenough
Amy Legere, 617-275-6517
alegere@greenough.biz
or
Investor:
ICR
William
Maina, 646-277-1236
william.maina@icrinc.com