BRIDGEWATER, N.J.–(BUSINESS WIRE)–
IGATE Corporation (“IGATE” or a “Company”) (IGTE), a New
Jersey-headquartered integrated record and operations solutions
provider, currently announced a financial regulation for a second quarter
and 6 months finished Jun 30, 2014.
Second Quarter Highlights
Revenues were $311.7 million
Increased 10.1% compared to $283.3 million in a second quarter
of 2013
Increased 3.2% sequentially compared to $302.2 million in the
initial entertain of 2014
Gross domain was 36.6%
Compared to 37.9% in a second entertain of 2013
Compared to 37.5 % in a initial entertain of 2014
Adjusted EBITDA was $70.0 million
Compared to $66.2 million in a second entertain of 2013
Compared to $75.2 million in a initial entertain of 2014
Net Income was $3.1 million (after a one-time assign of $51.8
million outset from a extinguishment of debt)
Compared to $30.0 million in a second entertain of 2013
Compared to $31.6 million in a initial entertain of 2014
Non GAAP diluted Earnings per share were $0.48
Compared with $0.44 in a second entertain of 2013
Compared with $0.45 per share in a initial entertain of 2014
Diluted advantage per share were $(0.07) GAAP (after a one-time
assign of $51.8 million outset from a extinguishment of debt)
Compared to $0.28 GAAP in a second entertain of 2013
Compared to $0.29 GAAP in a initial entertain of 2014
The Company combined 9 new clients including 5 Global 2000
companies during a second quarter
As of Jun 30, 2014, a Company had 32,742 employees with a net
further of 1,907
Ashok Vemuri, President and Chief Executive Officer, IGATE said, “I
am vehement with a traction my group is creation in a market. We had a
clever entertain in income expansion and we continue to make solid progress
on vast bargain pursuits. The partnership that we entered with a North
American word vital this entertain is testimony to a ability to be
a transformational actor and validates a stability investment in
building industry-leading solutions.”
“Our new code temperament and redesigned value tender has resonated
good with all a stakeholders. We continue to deposit in record and
routine capabilities with specific concentration on a Digital Practice. The
verticalization plan we implemented during a commencement of a year has
started agreeable dividends with altogether expansion opposite attention segments.”
he added.
Sujit Sircar, Chief Financial Officer, IGATE said, “We
successfully refinanced a high produce holds placed in 2011 during a much
revoke seductiveness cost successive to a rating upgrades from SP and
Moody’s. This has enabled us to revoke some-more than $50 million in interest
cost annually on a Q1 run rate basis.”
“We are happy to have confirmed a domain levels notwithstanding a salary
boost this quarter; however we are closely examination a forex
headwinds with a appreciation of a Rupee opposite a U.S. Dollar,” he
added.
Second Quarter 2014 Operating Results
Results for a 3 and 6 months finished Jun 30, 2014 and 2013
respectively, on a GAAP and non-GAAP basement are supposing in a table
below.
Q2 FY’14
Q2 FY’13
Y/Y
Six months
ended FY’14
Six months
ended FY’13
Y/Y
Net income ($Millions)
311.7
283.3
10.1
%
614.0
558.2
10.0
%
Operating domain ($Millions)
57.8
49.6
16.6
%
119.0
102.2
16.5
%
GAAP net income ($Millions)
3.1
30.0
(89.6
)%
34.7
64.7
(46.3
)%
GAAP diluted EPS ($)
(0.07
)
0.28
(125.0
)%
0.22
0.62
(64.5
)%
Adjusted EBITDA ($Millions)
70.0
66.2
5.7
%
145.2
131.8
10.2
%
Non-GAAP net income ($Millions)
39.5
34.5
14.5
%
75.9
74.4
2.1
%
Non-GAAP diluted EPS ($)
0.48
0.44
9.1
%
0.93
0.95
(2.1
)%
Key contracts won during a Second Quarter
A heading North American medical device association in a area of cardiac
stroke government has comparison IGATE to rise a next-generation
product platform. In a multi-year engagement, IGATE will design,
rise and exam FDA Class III module height and applications.
This module is focused on significantly improving entrance to clinical
information ensuing in softened medicine productivity, expedited clinical
decision-making, and softened altogether studious caring during reduced costs.
IGATE shaped a business attribute with one of a leading
blurb word companies in a U.S. As partial of a multi-year
relationship, IGATE will practice transformational record and
best use processes to allege a expansion of a client’s
stream operations in a Long Term Care (LTC) business. Through a
collaborative process, a patron will pattern and practice a new
handling indication for explain and policyholder executive services.
IGATE will discharge a client’s LTC business by its
disdainful and differentiated IGATE Business Administrative Solution
(IBAS).
A heading American medical record association traffic with hospital
hygiene and infection impediment has comparison IGATE to assistance design
Web-based applications and a apartment of mobile applications on Android
and iOS to be used by medical providers. These applications are
approaching to revoke incidents of hospital-acquired infections and any
ensuing re-admissions.
An American sports wardrobe and accessories association in a business of
creation a world’s many innovative opening rigging for athletes,
sealed adult with IGATE as a vital partner to minister to their
expansion strategy. As partial of a multi-million multi-year engagement,
IGATE will promote mixed levers during a routine and technology
turn to expostulate increasing operational potency year over year. IGATE
will also practice craving systems opposite tellurian locations
providing for a strong omni-channel sourroundings for a client.
IGATE has sealed adult with a North America formed heading medical device
association in radiology imaging to yield technical essay services. As
partial of this engagement, IGATE will work with a client’s services
classification to emanate a heart for all product support needs for a
far-reaching operation of medical device products sole opposite a creation in
correspondence with a internal support standards. This rendezvous is
approaching to yield users with a high peculiarity product documentation
government complement ensuing in certain user knowledge and enhanced
efficiency.
A vast midstream appetite association formed in North America traffic with
a transmission, storage and placement of oil and gas has selected
IGATE for a vast scale craving systems formation program. As
partial of a engagement, IGATE will connect mixed instances of
a client’s craving systems into a singular SAP system. IGATE will
also yield plan formulation and contrast services as partial of this
program.
A heading sell financing association formed in North America has extended
a agreement with IGATE for a vital IT Services partnership. In a
multi-million dollar engagement, IGATE will yield application
growth and upkeep services for a client’s goal critical
systems trimming from credit focus estimate to collections and
recovery. This will capacitate a patron to yield customized private
tag credit programs to vital retailers and financial services to
consumers by certificate of deposits.
Key Highlights and Recognitions during a Second Quarter
IGATE announced a code change with a phenomenon of a new logo
designed to showcase a Company’s rested vision, goal and core
values.
Ranked among Global “High Performers” in a HfS Enterprise Mobility
Services Blueprint Report 2014.
Received a 2014 Global Customer Value Leadership Award in Product
Engineering Services, presented by Frost Sullivan.
IGATE’s new smoothness core was non-stop in Budapest, Hungary. This will
supplement to a existent smoothness ability in Stockholm, Sweden to service
European customers.
Phase 6 of IGATE’s Bangalore campus was inaugurated. The new building
has a seating ability of 1,400.
IGATE and XTEL, a heading provider of sales automation solutions for
a consumer products industry, announced a partnership to deliver
extensive sales solutions to a consumer products attention in the
United States and Canada.
IGATE and OpenSpan, Inc. announced a new partnership to utilize
OpenSpan Desktop Automation and Activity Intelligence to raise its
hit core operations and consulting services to business in
North America and Europe.
IGATE announced a launch of a extensive IGATE After Sales
Service solution. This SAP-based resolution empowers organizations to
broach post-sales patron service, to heighten a patron experience
and expostulate patron loyalty, that can lead to aloft customer
remuneration and retention.
IGATE won a Madras Management Association’s Award for Managerial
Excellence in a services category. The endowment recognizes companies in
India opposite industries for their business philosophies over their
years of existence.
IGATE Corporation Annual Report 2013 won a Gold Award in the
Technology and IT Services difficulty in a prestigious LACP Annual
Report Competition. IGATE also won Best In-House Honors Award for the
Asia Pacific Region and was famous for building one of a top
80 Annual Reports in a Asia Pacific Region.
Conference Call and Webcast
IGATE has scheduled a Earnings Conference Call on Wednesday, Jul 16,
2014 to plead a regulation of a second entertain finished Jun 30, 2014.
Senior government of a association will plead a financial performance
for a entertain and answer participants’ questions during a call.
The call will be webcast live on IGATE’s website (www.igate.com)
on a Investor Relations page underneath a ‘Events’ section. Participants
are requested to record in 10 mins before to a start of a webcast.
The on-demand chronicle of a webcast will be accessible on a IGATE
website shortly after a call.
Investors, intensity investors, shareholders and bond holders can access
a telephonic replay by dialing 877-660-6853 (toll free) or
201-612-7415 (toll) and entering discussion series 13585487. The
telephonic replay will be accessible until Jul 30, 2014.
About IGATE
IGATE is a tellurian personality in providing integrated record and
operations-based solutions, headquartered in Bridgewater, New Jersey. As
a devoted partner to companies in North America, Europe and Asia
Pacific, IGATE provides solutions to clients’ business hurdles by
leveraging a record and routine capabilities, underwritten by an
bargain of domain and attention imperatives. With revenues over
US$1.1 billion, and a tellurian worker talent collateral of over 32,000,
IGATE offers productized applications and platforms that yield the
required rival and creation corner to clients opposite industries,
by a multiple of speed, lively and imagination. IGATE is listed
on NASDAQ underneath a pitch IGTE.
Follow IGATE on Twitter: @IGATE_Corp
IGATE on Facebook: www.facebook.comigateofficial
Use of non-GAAP Financial Measures
This press recover contains non-GAAP financial measures as tangible by
a Securities and Exchange Commission. These non-GAAP measures are not
in suitability with, or an choice for, measures prepared in
suitability with, generally supposed accounting beliefs in a United
States (“GAAP”) and competence be opposite from non-GAAP measures used by
other companies. In addition, these non-GAAP measures are not formed on
any extensive set of accounting manners or principles. Reconciliations
of these non-GAAP measures to their allied GAAP measures are
enclosed in a trustworthy financial tables.
IGATE believes that non-GAAP measures have stipulations in that they do
not simulate all of a amounts compared with IGATE’s regulation of
operations as dynamic in suitability with GAAP and that these measures
should usually be used to weigh IGATE’s regulation of operations in
and with a analogous GAAP measures. These non-GAAP
measures should be deliberate supplemental in inlet and should not be
deliberate in siege or be construed as being some-more critical than
allied GAAP measures.
IGATE believes that providing Adjusted EBITDA and non-GAAP net income
and non-GAAP diluted advantage per share in further to a associated GAAP
measures provides investors with larger clarity to a information
used by IGATE’s government in a financial and operational
decision-making. These non-GAAP measures are also used by a Management
in tie with IGATE’s opening remuneration programs.
More specifically, a non-GAAP financial measures contained herein
bar a following items:
Amortization of unsubstantial assets: Intangible resources primarily
contain of patron relationships. We catch charges relating to the
amortization of these intangibles. These charges are enclosed in our
GAAP display of advantage from operations, handling margin, net
income and diluted advantage per share. We bar these charges for
functions of calculating these non-GAAP measures.
Stock-based compensation: Although stock-based remuneration is an
critical member of a remuneration of IGATE’s employees and
executives, last a satisfactory value of a stock-based instruments
involves a high grade of visualisation and determination and a expense
accessible competence not simulate a tangible value satisfied on a future
practice or stop of a associated stock-based awards.
Furthermore, distinct money compensation, a value of stock-based
remuneration is dynamic regulating a formidable regulation that incorporates
factors, such as marketplace volatility, that are over a Company’s
control. Management believes it is useful to bar stock-based
remuneration in sequence to improved know a long-term performance
of IGATE’s core business.
Foreign sell (gain)/loss: From time to time, a Company
recognizes unfamiliar banking waste on re-measurement of escrow account
change and unfamiliar sell gains on re-measurement of redeemable
non-controlling seductiveness liability. IGATE believes that eliminating
these non-capitalized apparatus for functions of calculating non-GAAP
measures facilitates a some-more suggestive research of IGATE’s current
opening and comparisons to a past performance.
Delisting expenses: We willingly delisted a equity shares of our
infancy owned subsidiary, IGATE Computer Systems Limited from the
National Stock Exchange of India Limited and a Bombay Stock Exchange
Limited and a American Depository Shares from a New York Stock
Exchange. Delisting is an sparse activity and losses incurred in
tie therein are unsuitable in volume and are significantly
impacted by a timing and inlet of a delisting. IGATE believes
that expelling these losses for functions of calculating these
non-GAAP measures facilitates a some-more suggestive research of its
stream handling opening and comparisons to a past operating
performance.
Merger and reorder expenses: IGATE is merging and reorganizing
a abroad subsidiaries and branches with a perspective to simplifying the
corporate structure and has incurred authorised and veteran expenses
in this connection. Merger and reorder is an infrequent
activity and losses incurred in tie therein are inconsistent
in volume and significantly impacted by a timing and inlet of the
reorganization. IGATE believes that expelling these losses for
functions of calculating non-GAAP measures facilitates a more
suggestive research of IGATE’s stream handling opening and
comparisons to a past handling performance.
Preferred division and summation to elite stock: IGATE has issued
8.00% Series B Preferred Stock. IGATE also incurred distribution costs,
that have been netted opposite a deduction perceived from a issuance
of Series B Preferred Stock. The Series B Preferred Stock is being
accreted over a duration of 6 years. Although, a outcome of inclusion
of homogeneous units of common batch towards automobile participating
elite batch is anti-dilutive for GAAP purposes, a non-GAAP
diluted advantage per share has been distributed presumption a conversion
of all superb shares of elite batch into homogeneous units of
common stock. IGATE believes that expelling these losses as
good as inclusion of homogeneous units of common batch towards the
welfare shares to discriminate diluted advantage per share for purposes
of calculating these non-GAAP measures facilitates a some-more meaningful
research of IGATE’s stream handling opening and comparisons to
a past handling performance.
Loss on extinguishment of Debt: IGATE has extinguished Debt before to
a scheduled majority that has resulted in non-operating expenses
that differently would not have been incurred. Debt extinguishment
associated charges that are released from GAAP advantage to determine
non-GAAP advantage embody of a extinguishment reward paid as well
as a write-off of unamortized debt distribution costs. These expenses
are unsuitable and of a non-recurring inlet and IGATE believes that
expelling them for functions of calculating non-GAAP measures
facilitates a some-more suggestive research of IGATE’s stream operating
opening and comparisons to a past handling performance.
From time to time in a future, there competence be other apparatus that IGATE may
bar in presenting a financial results.
Forward-Looking Statements
This news recover contains forward-looking statements that involve
risks, uncertainties and assumptions. If a risks or uncertainties ever
manifest or a assumptions infer incorrect, a regulation of the
Company competence differ materially from those voiced or pragmatic by such
forward-looking statements and assumptions. All statements per the
business outlook, a approaching opening of a Company’s products and
services for a clients, and all other statements in this recover other
than statements of chronological fact are statements that could be deemed
forward-looking statements. Words such as “expect”, “potential”,
“believes”, “anticipates”, “plans”, “intends” and other similar
expressions are dictated to brand such forward-looking statements.
Forward-looking statements in a press recover include, without
limitation, statements per a business outlook, and a expected
opening of a Company’s products and services for a clients, and
other matters that engage famous and different risks, uncertainties and
other factors that competence means results, levels of activity, opening or
achievements to differ materially from regulation voiced or pragmatic by
this press release. Such risk factors include, among others: uncertain
tellurian mercantile conditions, strong revenues, new organizational
and operational strategies, continued pricing pressures and the
poignant indebtedness that will use a poignant apportionment of its
money flows to use such indebtedness, as a outcome of that the
Company competence not have sufficient supports to work a businesses in the
demeanour it intends or has operated in a past. Additional risks relating
to a Company are set onward in a Company’s Annual Report on Form 10-K
for a mercantile year finished Dec 31, 2013, a Company’s Quarterly
Report on Form 10-Q for a mercantile entertain finished Mar 31, 2014 as well
as a Company’s other reports filed with a Securities and Exchange
Commission. As in before periods, a financial information set onward in
this release, including tax-related items, reflects estimates formed on
information accessible during this time. While a Company believes these
estimates to be accurate, tangible regulation competence differ materially from
those contained in a forward-looking statements in this press release.
These amounts could also differ materially from tangible reported amounts
in a Company’s quarterly Report on Form 10-Q for a entertain ended
Jun 30, 2014. The Company assumes no requirement and does not intend to
refurbish these forward-looking statements as resources change. This
request does not consecrate an offer to squeeze or to sell securities
in any jurisdiction.
IGATE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, solely per share data)
June 30,
December 31,
2014
2013
(unaudited)
(audited)
ASSETS
Current assets:
Cash and money equivalents
$
128,507
$
204,836
Restricted cash
-
360,000
Short-term investments
150,864
181,401
Accounts receivable, net of allowances of $3,272 and $4,103,
respectively
169,756
157,905
Unbilled revenues
78,660
61,424
Prepaid losses and other stream assets
39,554
44,492
Prepaid income taxes
20,544
838
Deferred taxation assets
1,996
10,235
Foreign sell derivative contracts
5,756
836
Receivable from associated parties
7,331
4,046
Total stream assets
602,968
1,026,013
Deposits and other assets
22,480
24,930
Prepaid income taxes
32,552
32,160
Property and equipment, net of amassed debasement of $121,965
and $108,084, respectively
201,400
165,581
Leasehold land
77,798
76,732
Deferred taxation assets
15,562
15,153
Goodwill
450,655
438,891
Intangible assets, net
117,153
119,262
Total assets
$
1,520,568
$
1,898,722
LIABILITIES, PREFERRED STOCK AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
10,276
$
9,268
Line of credit
52,000
52,000
Senior Notes
-
360,000
Term loans
90,000
90,000
Accrued payroll and associated costs
48,301
57,093
Other accrued liabilities
76,499
79,785
Accrued income taxes
3,049
5,802
Foreign sell derivative contracts
583
909
Deferred revenue
19,455
17,776
Total stream liabilities
300,163
672,633
Other long-term liabilities
5,420
3,532
Senior notes
325,000
410,000
Term Loans
270,000
270,000
Accrued income taxes
20,084
13,936
Deferred taxation liabilities
35,199
41,717
Total liabilities
955,866
1,411,818
Series B Preferred batch , but standard value
427,184
410,371
Shareholders’ equity:
Common Stock, standard value $0.01 per share
599
594
Common batch in treasury, during cost
(14,714
)
(14,714
)
Additional paid-in capital
217,232
204,143
Retained earnings
286,669
268,750
Accumulated other extensive loss
(357,482
)
(387,115
)
Total IGATE Corporation shareholders’ equity
132,304
71,658
Non last interest
5,214
4,875
Total equity
137,518
76,533
Total liabilities, elite batch and shareholders’ equity
$
1,520,568
$
1,898,722
IGATE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands)
(unaudited)
Three Months ended
Six Months ended
June 30,
June 30,
2014
2013
2014
2013
Revenues
$
311,745
$
283,268
$
613,951
$
558,186
Cost of revenues (exclusive of debasement and amortization)
197,733
175,771
386,513
346,010
Gross margin
114,012
107,497
227,438
212,176
Selling, ubiquitous and executive expense
47,508
49,350
90,169
92,142
Depreciation and amortization
8,718
8,595
18,276
17,866
Income from operations
57,786
49,552
118,993
102,168
Loss on extinguishment of debt
(51,760
)
-
(51,760
)
-
Other income (loss), net
(5,839
)
(4,712
)
(21,910
)
(7,608
)
Income before income taxes
187
44,840
45,323
94,560
Income taxation responsibility (benefit)
(3,027
)
14,867
10,398
29,827
Net income before non- last interest
3,214
29,973
34,925
64,733
Non last interest
98
-
193
-
Net income attributable to IGATE Corporation
3,116
29,973
34,732
64,733
Accretion to Preferred Stock
145
120
284
235
Preferred dividend
8,390
7,752
16,529
15,252
Net (loss) income attributable to IGATE common shareholders
$
(5,419
)
$
22,101
$
17,919
$
49,246
IGATE CORPORATION
Earnings Per Share
(Amounts in thousands, solely per share data)
(unaudited)
Three Months Ended Jun 30,
Six Months Ended Jun 30,
PARTICULARS
2014
2013
2014
2013
Net income (loss) attributable to IGATE common shareholders
$
(5,419
)
$
22,101
$
17,919
$
49,246
Add: Dividends on Series B Preferred Stock
8,390
7,752
16,529
15,252
2,971
29,853
34,448
64,498
Less: Dividends on
Series B Preferred Stock
[A]
8,390
7,752
16,529
15,252
Undistributed Income (loss)
$
(5,419
)
$
22,101
$
17,919
$
49,246
Allocation of Undistributed Income (loss)
Common stock
[B]
(3,987
)
16,479
13,184
36,718
Unvested limited stock
[C]
-
6
-
14
Series B Preferred Stock
[D]
(1,432
)
5,616
4,735
12,514
$
(5,419
)
$
22,101
$
17,919
$
49,246
Shares superb for allocation of undistributed income:
Common stock
58,864
57,301
58,864
57,301
Unvested limited stock
-
23
-
23
Series B Preferred Stock
21,139
19,529
21,139
19,529
80,003
76,853
80,003
76,853
Weighted normal shares outstanding:
Common stock
[E]
58,836
57,288
58,762
57,403
Unvested limited stock
[F]
-
23
-
23
Series B Preferred Stock
[G]
21,139
19,529
21,139
19,529
79,975
76,840
79,901
76,955
Weighted normal common batch outstanding
58,836
57,288
58,762
57,403
Dilutive outcome of batch options and limited shares outstanding
1,856
1,611
1,857
1,683
Dilutive weighted normal shares outstanding
[H]
60,692
58,899
60,619
59,086
Distributed advantage per share:
Series B Preferred Stock
[I=A/G]
$
0.40
$
0.40
$
0.78
$
0.79
Undistributed advantage per share:
Common stock
[J=B/E]
($0.07
)
$
0.29
$
0.22
$
0.65
Unvested limited stock
[K=C/F]
-
$
0.29
-
$
0.65
Series B Preferred Stock
[L=D/G]
($0.07
)
$
0.29
$
0.22
$
0.65
Earnings per share – Basic
Common stock
[J]
($0.07
)
$
0.29
$
0.22
$
0.65
Unvested limited stock
[K]
-
$
0.29
-
$
0.65
Series B Preferred Stock
[I+L]
$
0.33
$
0.69
$
1.00
$
1.44
Earnings per share – Diluted
[[B+C]/H]
($0.07
)
$
0.28
$
0.22
$
0.62
The series of superb participative automobile preferred
batch for that a advantage per share exceeded a advantage per
share of common batch many-sided to 21.1 million and 19.5 million
for a 3 and 6 months finished Jun 30, 2014 and 2013,
respectively. These shares were released from a mathematics of
diluted advantage per share since they were anti-dilutive.
IGATE CORPORATION
Reconciliation of Net Income, Net of Tax, to Adjusted EBITDA
(Amounts in thousands)
(unaudited)
Three Months ended
Six Months ended
June 30,
June 30,
2014
2013
2014
2013
Net income
$
3,214
$
29,973
$
34,925
$
64,733
Adjustments:
Depreciation and amortization
8,718
8,595
18,276
17,866
Interest expenses
12,196
24,112
35,825
46,769
Income taxation expense
(3,027
)
14,867
10,398
29,827
Other income, net
(3,640
)
(17,417
)
(10,994
)
(34,697
)
Foreign sell gain
(2,717
)
(1,983
)
(2,921
)
(4,464
)
Stock-based Compensation
3,519
3,240
7,816
6,365
Loss on Extinguishment of debt
51,760
-
51,760
-
Delisting expenses
-
-
-
93
Merger and reorder expenses
-
4,845
130
5,264
Adjusted EBITDA (a non-GAAP measure)
$
70,023
$
66,232
$
145,215
$
131,756
The Company presents a non-GAAP financial measures EBITDA and
practiced EBITDA since government uses these measures to monitor
and weigh a opening of a business and believes that the
display of these measures will raise investors’ ability to
investigate trends in a business and weigh a Company’s underlying
opening relations to other companies in a industry.
IGATE CORPORATION
Reconciliation of Selected GAAP Measures to Non-GAAP Measures
(Amounts in thousands, solely per share data)
(unaudited)
Three Months ended
Six Months ended
June 30,
June 30,
2014
2013
2014
2013
GAAP Net income attributable to IGATE common shareholders
$
(5,419
)
$
22,101
$
17,919
$
49,246
Adjustments:
Preferred division and summation to elite stock
8,535
7,872
16,813
15,487
Amortization of Intangible assets
2,701
2,692
5,281
5,440
Stock-based Compensation
3,519
3,240
7,816
6,365
Delisting expenses
-
-
-
93
Merger and reorder expenses
-
4,845
130
5,264
Foreign sell detriment on merger hedging and remeasurement
-
88
-
489
Forfeiture of vested batch options
-
(3,005
)
-
(3,005
)
Loss on Extinguishment of debt
51,760
-
51,760
-
Income taxation adjustments
(21,574
)
(3,327
)
(23,817
)
(5,008
)
Non-GAAP Net income attributable to IGATE common shareholders
$
39,522
$
34,506
$
75,902
$
74,371
Weighted normal shares outstanding, Basic
58,836
57,311
58,762
57,426
Add: insincere elite batch conversion
21,139
19,529
21,139
19,529
Non-GAAP weighted normal shares superb , Basic
79,975
76,840
79,901
76,955
Weighted normal dilutive common shares outstanding
60,692
58,899
60,619
59,086
Add: insincere elite batch conversion
21,139
19,529
21,139
19,529
Weighted normal dilutive common homogeneous shares outstanding
81,831
78,428
81,758
78,615
Basic EPS (GAAP) to Basic EPS (Non-GAAP):
Basic EPS (GAAP)
$
(0.07
)
$
0.29
$
0.22
$
0.65
Preferred division and summation to elite stock
0.11
0.10
0.21
0.20
Amortization of Intangible assets
0.03
0.04
0.07
0.08
Stock-based Compensation
0.04
0.04
0.10
0.08
Delisting expenses
-
-
-
0.00
Merger and reorder expenses
-
0.06
0.00
0.06
Foreign sell detriment on merger hedging and remeasurement
-
(0.00
)
-
0.00
Forfeiture of vested batch options
-
(0.04
)
-
(0.04
)
Loss on Extinguishment of debt
0.65
-
0.65
-
Income taxation adjustments
(0.27
)
(0.04
)
(0.30
)
(0.06
)
Basic EPS (Non-GAAP)
$
0.49
$
0.45
$
0.95
$
0.97
Diluted EPS (GAAP) to Diluted EPS (Non-GAAP):
Diluted EPS (GAAP)
$
(0.07
)
$
0.28
$
0.22
$
0.62
Preferred division and summation to elite stock
0.11
0.10
0.21
0.20
Amortization of Intangible assets
0.03
0.04
0.06
0.08
Stock-based Compensation
0.04
0.04
0.10
0.08
Delisting expenses
-
-
-
-
Merger and reorder expenses
-
0.06
0.00
0.07
Foreign sell detriment on merger hedging and remeasurement
-
(0.00
)
-
-
Forfeiture of vested batch options
-
(0.04
)
-
(0.04
)
Loss on Extinguishment of debt
0.63
-
0.63
-
Income taxation adjustments
(0.26
)
(0.04
)
(0.29
)
(0.06
)
Diluted EPS (Non-GAAP)
$
0.48
$
0.44
$
0.93
$
0.95
Non-GAAP Disclosure of Adjusted EBITDA
IGATE presents Adjusted EBITDA as a supplemental magnitude of its
performance. We conclude Adjusted EBITDA as net income plus
(i) depreciation and amortization, (ii) interest expense, (iii) income
taxation expense, reduction (iv) other income, net and (v) foreign exchange
(gain)/loss, (vi) stock-based remuneration (vii) delisting expenses,
(viii) merger and reorder losses and (ix) detriment on
extinguishment of debt. We separated a impact of a above as we do
not cruise them as demonstrative of a ongoing handling performance.
These adjustments are itemized below. You are speedy to evaluate
these adjustments and a reasons we cruise them suitable for
supplemental analysis. In evaluating Adjusted EBITDA, we should be
wakeful that in a destiny we competence catch losses that are a same as or
identical to some of a adjustments in this presentation. Our
display of Adjusted EBITDA should not be construed as an inference
that a destiny regulation will be unblushing by surprising or non-recurring
items.
We benefaction Adjusted EBITDA since we trust it assists investors and
analysts in comparing a opening opposite stating durations on a
unchanging basement by incompatible apparatus that we do not trust are
demonstrative of a core handling performance. In addition, we use
Adjusted EBITDA: (i) as a cause in evaluating management’s performance
when last inducement compensation, (ii) to weigh the
efficacy of a business strategies and (iii) because a credit
agreement and a indent use measures identical to Adjusted EBITDA to
magnitude a correspondence with certain covenants.
Adjusted EBITDA has stipulations as an methodical tool. Some of these
stipulations are:
Adjusted EBITDA does not simulate a money expenditures or future
requirements, for collateral expenditures or contractual commitments;
Adjusted EBITDA does not simulate changes in, or money mandate for,
a operative collateral needs;
Adjusted EBITDA does not simulate a poignant seductiveness expense, or
a money mandate required to use seductiveness or principal
payments, on a debts; nonetheless debasement and amortization are
non-cash charges, a resources being unheeded and amortized will
mostly have to be transposed in a future, and practiced EBITDA does not
simulate any money mandate for such replacements; non-cash
remuneration is and will sojourn a pivotal component of a altogether long-term
inducement remuneration package, nonetheless we bar it as an expense
when evaluating a ongoing handling opening for a particular
period; and
Adjusted EBITDA does not simulate a impact of certain money charges
ensuing from matters we cruise not to be demonstrative of a ongoing
operations; and other companies in a attention competence calculate Adjusted
EBITDA differently than we do, tying a utility as a
analogous measure.
Because of these limitations, Adjusted EBITDA should not be considered
in siege or as a surrogate for opening measures distributed in
suitability with GAAP. We recompense for these stipulations by relying
essentially on a GAAP regulation and regulating Adjusted EBITDA only
supplementally.
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