LXFT
$59.75
Luxoft Holding
$1.10
1.88%
Earnings Details
3rd Quarter December 2016
Tuesday, February 14, 2017 4:46:00 PM
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Summary

Luxoft Reaffirms

Luxoft Holding (LXFT) reported 3rd Quarter December 2016 earnings of $0.67 per share on revenue of $206.9 million. The consensus earnings estimate was $0.63 per share on revenue of $209.1 million. Revenue grew 20.3% on a year-over-year basis.

The company said it continues to expect fiscal 2017 non-GAAP earnings of at least $2.85 per share on revenue of at least $781.0 million. The current consensus earnings estimate is $2.90 per share on revenue of $786.7 million for the year ending March 31, 2017.

Luxoft Holding Inc provides software development services and IT solutions to its multinational clients. Its product line encompasses Horizon, Twister and iStockTrack.

Results
Reported Earnings
$0.67
Earnings Whisper
-
Consensus Estimate
$0.63
Reported Revenue
$206.9 Mil
Revenue Estimate
$209.1 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Luxoft Holding, Inc Reports Results for Three and Nine Months Ended December 31, 2016

Luxoft Holding, Inc (LXFT), a leading provider of software development services and innovative IT solutions to a global client base, today announced results for the three and nine months ended December 31, 2016.

Highlights - Three Months Ended December 31, 2016

US GAAP revenue on the reported basis amounted to $206.9 million, an increase of 20.3% year over year and 5.3% sequentially

US GAAP revenue on the constant currency basis amounted to $209.7 million, an increase of 21.9% year over year and 6.7% sequentially

US GAAP revenue outside of the top three legacy accounts increased 53.0% year over year

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $37.5 million and EBITDA margin was 18.1%, compared to $32.8 million and 19.1% in the year-ago quarter and $37.4 million and 19.1% sequentially

Diluted earnings per share (EPS) on a US GAAP basis was $0.55, compared to $0.52 in the year-ago quarter and $0.48 sequentially

Diluted EPS on a non-GAAP basis was $0.82, compared to $0.72 in the year-ago quarter, and $0.83 sequentially

Highlights - Nine Months Ended December 31, 2016

US GAAP revenue amounted to $581.4 million, an increase of 20.7% year over year

US GAAP revenue on the constant currency basis amounted to $588.0 million, an increase of 22.1% year over year

Adjusted EBITDA was $104.6 million and EBITDA margin was 18.0%, compared to $96.9 million and 20.1% for the same period last year

Diluted EPS on a US GAAP basis was $1.44, compared to $1.62 in the nine months of last year

Diluted EPS on a non-GAAP basis was $2.27, compared to $2.16 in the nine months of last year

High Potential Account (HPA) group generated revenues in excess of $160 million, an increase of over 110% year over year

-- Top one client concentration decreased 6.5 points year over year

Productivity per engineer reached $78,761, an increase of 2.0% vs. the same period a year ago

Revenue for the three months ended December 31, 2016 increased to $206.9 million, up 20.3% from $171.9 million for the same period a year ago, and 5.3% sequentially. Adjusted EBITDA was $37.5 million with corresponding margins of 18.1%, as compared to $32.8 million and 19.1%, respectively, in the year ago quarter, and $37.4 million and 19.1% sequentially. US GAAP net income was $18.5 million, or $0.55 per diluted share, compared to $18.0 million and $0.52 per diluted share for the same period a year ago, and $16.3 million and $0.48 sequentially. Non-GAAP net income was $27.9 million, or $0.82 per diluted share, compared to $24.8 million and $0.72 per diluted share for the same period a year ago, and $27.8 million and $0.83 sequentially. Reconciliations between non-GAAP financial measures and US GAAP operating results and diluted EPS are included at the end of this release.

Revenue for the nine months ended December 31, 2016 increased to $581.4 million, up 20.7% from $481.5 million for the same period a year ago. US GAAP net income was $48.9 million, or $1.44 per diluted share, compared to $55.7 million and $1.62 per diluted share for the same period a year ago. Non-GAAP net income was $76.8 million, or $2.27 per diluted share, compared to $74.0 million and $2.16 per diluted share for the same period a year ago.

"We are happy to deliver good quarterly results to our shareholders, reflecting healthy growth and margins in line with our guidance. It has been a volatile time for businesses worldwide; however, we welcome challenges as they provide opportunities to transform the company and make it even stronger," said Dmitry Loschinin, CEO and President of Luxoft. He continued: "We are happy to see solid growth across our core verticals mostly driven by High Potential Accounts across Automotive, Financial Services and Telecom sectors. At this time, the HPA group in the aggregate delivers close to 30% of revenues and is growing 110-120% on an annual basis. We believe we are successfully rotating the source of growth for the company to a new client base outside of our legacy clients. Current pace of our account development and pipeline dynamic combined with prevailing trends around autonomous driving, robo-advisory, cloud enablement, and other disruptive digital technologies that support IT spending momentum, we stand optimistic on our ability to capture the incoming demand."

Virtually all of Luxoft’s key verticals delivered strong performance during the course of the year with Telecom and Automotive and Transport delivering robust annual growth of 71.6% and 45.5%, respectively, for the nine months ended December 31, 2016. For the same period, the Company generated historically steady revenue growth across its core geographies: Swiss revenues increased 73.2%, German revenues increased 37.8%, and U.S. revenues increased 23.5% compared to the year-ago period. Luxoft finished the first nine months of this financial year with 12,036 employees, of which 10,149 were delivery professionals, who continued to drive average productivity during this period to another record - in excess of $78,700 per engineer or 2.0% annual growth. The effective rate for the nine months ended December 31, 2016 was 15.0%, the bottom of the expected 15%-16% range for current fiscal year.

"We are pleased to announce a set of quarterly results marked by strong operational and financial performance. Despite some headwinds in foreign exchange, political, and other macro aspects we were able to reinvest into the company, once again honored our annual earnings outlook, and reported financial results in-line with the expectations. Our revenue per billable engineer keeps climbing as we consistently offer more value to our clients and increase productivity within the company. Our cash cushion and the level of free cash flow generation remain healthy and stable as we continue our bolt-on acquisition strategy, being conscious of shareholder dilution and remaining virtually free of the long-term debt," said Roman Yakushkin, Chief Financial Officer.

Outlook for the Year Ending March 31, 2017:

The Company is confirming the following guidance for the financial year ending March 31, 2017:

Revenue is expected to be at least $781 million, an increase of at least 20.0% year over year

-- Adjusted EBITDA margin is expected to be in the range of 17.0% - 19.0%

Diluted EPS guidance on a GAAP basis is expected to be at least $1.65; diluted EPS on a non-GAAP basis is expected to be at least $2.85

EPS is based on an estimated weighted average of 33,967,797 diluted shares

Reconciliations between forward-looking non-GAAP financial measures and comparable forward-looking measures on a US GAAP basis are included at the end of this release.

Conference Call Information:

A conference call will be conducted with the members of Luxoft’s senior management at 8:00 a.m. EST on Wednesday, February 15, 2017 to review the financial and operational performance of the Company for the above-mentioned period.

To participate in the conference call please dial 877-407-8293 (for domestic U.S. callers) or 201-689-8349 (for international callers). A live webcast will also be available during the call and can be accessed at http://edge.media-server.com/m/p/3vfj55sp/lan/en. Participants, please access the website at least 10 minutes prior to the call to register and follow the instructions provided on the website to download and install the necessary applications.

If you are unable to join our live event, a replay will be available by dialing 877-660-6853 (for domestic U.S. callers) or 201-612-7415 (for international callers) and entering the conference ID# 13653359. The replay will be available from two hours as of the end of the call and up to 11:59 p.m. EST on March 1, 2017. The replay will also be available at Luxoft’s Investor Relations portal for 14 days following the call.

About Luxoft:

Luxoft Holding, Inc. (LXFT) is a leading provider of software development services and innovative IT solutions to a global client base consisting primarily of large multinational corporations. Luxoft’s software development services consist of core and mission critical custom software development and support, product engineering and testing, and technology consulting. Luxoft’s solutions are based on its proprietary products and platforms that directly impact its clients’ business outcomes and efficiently deliver continuous innovation. The Company develops its solutions and delivers its services from 32 dedicated delivery centers worldwide. It has more than 12,000 employees across 39 offices in 19 countries in North America, Mexico, Western and Eastern Europe, Asia Pacific, and South Africa. Luxoft is incorporated in Tortola, British Virgin Islands, has its operating headquarters office in Zug, Switzerland and is listed on the New York Stock Exchange. For more information, please visit http://www.luxoft.com.

Non-GAAP Financial Measures:

To supplement our financial results presented in accordance with US GAAP, this press release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: earnings before interest, tax, depreciation and amortization (EBITDA); adjusted EBITDA; non-GAAP net income; and non-GAAP diluted Earnings per share (EPS). Non-GAAP net income and non-GAAP EPS exclude stock-based compensation expense, amortization of fair value adjustments to intangible assets and impairment thereof and other acquisitions related costs, that may include changes in the fair value of contingent consideration liabilities. Non-GAAP diluted EPS are calculated as non-GAAP net income divided by weighted average number of diluted shares. We provide these non-GAAP financial measures because we believe that they present a better measure of our core business and management uses them internally to evaluate our ongoing performance. Accordingly, we believe that these non-GAAP measures are useful to investors in enhancing their understanding of our operating performance. These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable US GAAP measures. The non-GAAP results and a full reconciliation between US GAAP and non-GAAP results are provided in the accompanying tables at the end of this press release.

Forward-Looking Statements:

In addition to historical information, this release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include information about possible or assumed future results of our business and financial condition, as well as the results of operations, liquidity, plans and objectives. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential," or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding: the persistence and intensification of competition in the IT industry; the future growth of spending in IT services outsourcing generally and in each of our industry verticals, application outsourcing and custom application development and offshore research and development services; the level of growth of demand for our services from our clients; the level of increase in revenues from our new clients; seasonal trends and the budget and work cycles of our clients; general economic and business conditions in our locations, including geopolitical instability and social, economic or political uncertainties, particularly in Russia and Ukraine, and any potential sanctions, restrictions or responses to such conditions imposed by some of the locations in which we operate; the levels of our concentration of revenues by vertical, geography, by client and by type of contract in the future; the expected timing of the increase in our corporate tax rate, or actual increases to our effective tax rate which we may experience from time to time; our expectations with respect to the proportion of our fixed price contracts; our expectation that we will be able to integrate and manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands we expect our rapid growth to place on our management and infrastructure; the sufficiency of our current cash, cash flow from operations, and lines of credit to meet our anticipated cash needs; the high proportion of our cost of services comprised of personnel salaries; our plans to introduce new products for commercial resale and licensing in addition to providing services; our anticipated joint venture with one of our clients; and our continued financial relationship with IBS Group Holding limited and its subsidiaries including expectations for the provision and purchase of services and purchase and lease of equipment; and other factors discussed under the heading "Risk Factors" in the Annual Report on Form 20-F for the year ended March 31, 2016 and other documents filed with or furnished to the Securities and Exchange Commission. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.

LUXOFT HOLDING, INC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars, except share amounts)
December 31,
As of March 31,
2016
2016
(Unaudited)
Assets
Current assets
Cash and cash equivalents
$
98,064
$
108,545
145,814
131,204
Trade accounts receivable, net of allowance for doubtful accounts
of
$473 at December 31, 2016 and $79 at March 31, 2016
Unbilled revenue
17,539
16,081
Work-in-progress
2,109
1,595
Due from related parties
1,770
2,180
VAT and other taxes receivable
1,684
1,814
Advances issued
3,271
2,413
Other current assets
6,164
3,333
Total current assets
276,415
267,165
Non-current assets
Deferred tax assets
5,304
3,174
Property and equipment, net
45,403
46,072
Intangible assets, net
90,885
43,780
Goodwill
52,210
30,285
Other non-current assets
7,725
4,066
Total non-current assets
201,527
127,377
Total assets
$
477,942
$
394,542
Liabilities and shareholders’ equity
Current liabilities
Short-term borrowings
$
542
$
460
Accounts payable
7,036
8,266
Accrued liabilities
33,053
27,357
Deferred revenue
2,678
5,048
Due to related parties
361
518
VAT and other taxes payable
20,068
22,532
Payable under foreign exchange contracts
418
2,476
Payable for acquisitions, current
17,815
5,595
Other current liabilities
2,053
1,503
Total current liabilities
84,024
73,755
Deferred tax liability, non-current
5,591
5,511
Contingent payable for software acquisition, non-current
17,500
11,786
Other non-current liabilities
1,522
1,757
Total liabilities
108,637
92,809
Shareholders’ equity
--
--
Share capital (80,000,000 shares authorized; 33,241,472 issued and
outstanding
with no par value as at December 31, 2016, and 80,000,000
shares
authorized; 33,178,641 issued and outstanding with no par value
as
at March 31, 2016)
Additional paid-in capital
126,407
107,477
(3,172)
(2,665)
Common stock held in treasury, at cost (44,724 shares as of
December
31, 2016; 35,579 shares as of March 31, 2016)
Retained earnings
249,773
200,870
Accumulated other comprehensive loss
(3,735)
(3,981)
Total shareholders’ equity attributable to the Group
369,273
301,701
Non-controlling interest
32
32
Total equity
369,305
301,733
Total liabilities and equity
$
477,942
$
394,542
LUXOFT HOLDING, INC
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands of US dollars, except share and per share amounts)
For the three months
For the nine months
ended December 31,
ended December 31,
2016
2015
2016
2015
Unaudited
Unaudited
Sales of services
$
206,924
$
171,946
$
581,430
$
481,543
Operating expenses
Cost of services (exclusive of depreciation and amortization)
124,688
97,412
345,348
275,835
Selling, general and administrative expenses
54,291
45,229
157,530
123,505
Depreciation and amortization
9,362
6,201
24,587
17,111
(Gain)/Loss from revaluation of contingent liability
(1,424)
61
(1,363)
845
Operating income
20,007
23,043
55,328
64,247
Other income and expenses
Interest income/(expense), net
6
61
10
(28)
Other gains, net
3,630
1,025
4,364
1,601
Gain from foreign currency exchange contract
953
595
1,314
1,280
Net foreign exchange loss
(2,847)
(3,474)
(3,493)
(1,905)
Income before income taxes
21,749
21,250
57,523
65,195
Income tax expense
(3,217)
(3,211)
(8,620)
(9,536)
Net income
$
18,532
$
18,039
$
48,903
$
55,659
Net (income)/loss attributable to the non-controlling interest
--
--
--
--
Net income attributable to the Group
$
18,532
$
18,039
$
48,903
$
55,659
Basic EPS per Class A and Class B ordinary share
Net income attributable to the Group per ordinary share
$
0.56
$
0.55
$
1.47
$
1.69
Weighted average ordinary shares outstanding
33,225,850
32,892,577
33,210,119
32,885,820
Diluted EPS per Class A and Class B ordinary share
Diluted net income attributable to the Group per ordinary share
$
0.55
$
0.52
$
1.44
$
1.62
Diluted weighted average ordinary shares outstanding
33,878,605
34,523,031
33,879,650
34,267,675
LUXOFT HOLDING, INC
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands of US dollars)
For the three months
For the nine months
ended December 31,
ended December 31,
2016
2015
2016
2015
Unaudited
Unaudited
Net income
$
18,532
$
18,039
$
48,903
$
55,659
Other comprehensive income/(loss) income, net of tax
Gains on derivative instruments, net of tax effect of $74 and $173
1,648
--
2,258
--
Translation adjustments with no tax effects
(367)
(288)
(2,012)
(426)
Total other comprehensive income/(loss)
1,281
(288)
246
(426)
Comprehensive income
19,813
17,751
49,149
55,233
--
--
--
--
Comprehensive income (income)/loss attributable to the
non-controlling
interest
Comprehensive income attributable to the Group
$
19,813
$
17,751
$
49,149
$
55,233
LUXOFT HOLDING, INC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
(In thousands of US dollars)
For the nine months
ended December 31,
2016
2015
(unaudited)
Operating activities
Income from operations
$
48,903
$
55,659
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization
24,587
17,111
Deferred tax benefit
(1,434)
(1,783)
Foreign currency exchange contracts income
(1,314)
(1,280)
Loss on foreign exchange
3,493
1,905
Provision for doubtful accounts
417
458
(Gain)/loss from revaluation of contingent liability
(1,363)
845
Share-based compensation
21,515
13,762
Changes in operating assets and liabilities:
Trade accounts receivable and unbilled revenue
(3,389)
(1,639)
Work-in-progress
(514)
(728)
Due to and from related parties
261
(1,665)
Accounts payable
(5,839)
(3,480)
Accrued liabilities
(3,104)
988
Deferred revenue
(2,897)
(3,426)
Changes in other assets and liabilities
(4,781)
(226)
Net cash provided by operating activities
74,541
76,501
Investing activities
Purchases of property and equipment
(14,574)
(15,067)
Purchases of intangible assets
(2,930)
(3,897)
Proceeds from disposal of property and equipment
--
40
Acquisitions, net of cash acquired
(54,464)
--
Short-term deposits
--
(15,000)
Net cash used in investing activities
(71,968)
(33,924)
Financing activities
Net repayment of short-term borrowings
(5,998)
(1,199)
Acquisition of business, deferred consideration
(4,534)
(3,292)
Repurchases of common stock
(1,266)
--
Repayment of capital lease obligations
(123)
(84)
Net cash used in financing activities
(11,921)
(4,575)
Effect of exchange rate changes on cash and cash equivalents
(1,133)
(1,019)
Net (decrease)/ increase in cash and cash equivalents
(10,481)
36,983
Cash and cash equivalents at beginning of year
108,545
45,593
Cash and cash equivalents at end of period
$
98,064
$
82,576
Luxoft Holding, Inc
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP
Measures (Unaudited)
(In thousands of US dollars, except per share amounts and
percentages)
Three Months Ended December 31,
Nine Months Ended December 31,
2016
2016
2016
2016
2016
2016
GAAP
Adjustments
Non-GAAP
GAAP
Adjustments
Non-GAAP
Operating income
20,007
10,231 (a)
30,238
55,328
30,839 (a)
86,167
Operating margin
9.7 %
4.9 %
14.6 %
9.5 %
5.3 %
14.8
Net income
18,532
9,416 (b)
27,948
48,903
27,913 (b)
76,816
Diluted earnings per share
$
0.55
$
0.82
$
1.44
$
2.27
Three Months Ended December 31,
Nine Months Ended December 31,
2015
2015
2015
2015
2015
2015
GAAP
Adjustments
Non-GAAP
GAAP
Adjustments
Non-GAAP
Operating income
23,043
7,254 (a)
30,297
64,247
20,168 (a)
84,415
Operating margin
13.4 %
4.2 %
17.6 %
13.3 %
4.2 %
17.5
Net income
18,039
6,733 (b)
24,772
55,659
18,355 (b)
74,014
Diluted earnings per share
$
0.52
$
0.72
$
1.62
$
2.16
Luxoft Holding, Inc
Reconciliations of Non-GAAP Financial Measures to Comparable
GAAP Measures
(Unaudited)
(In thousands of US dollars, except per share amounts and
percentages)
Three Months Ended
Nine Months Ended
December 31,
December 31,
(a)
2016
2015
2016
2015
Adjustments to GAAP operating income
Stock-based compensation expense
$
7,625
$
5,335
$
21,514
$
13,762
Amortization of purchased Intangible assets
3,806
1,858
8,359
5,561
(Gain)/Loss from revaluation of contingent liability
(1,424)
61
(1,363)
845
Acquisition related costs
224
--
2,329
--
Total Adjustments to GAAP income from operations:
$
10,231
$
7,254
$
30,839
$
20,168
Three Months Ended
Nine Months Ended
December 31,
December 31,
(b)
2016
2015
2016
2015
Adjustments to GAAP net income
Stock-based compensation expense
$
7,625
$
5,335
$
21,514
$
13,762
Amortization of purchased Intangible assets
3,806
1,858
8,359
5,561
(Gain)/Loss from revaluation of contingent liability
(1,424)
61
(1,363)
845
Acquisition related costs
224
--
2,329
--
Tax effect of the adjustments
(815)
(521)
(2,926)
(1,813)
Total Adjustments to GAAP net income
$
9,416
$
6,733
$
27,913
$
18,355
Three Months Ended
Nine Months Ended
December 31,
December 31,
2016
2015
2016
2015
Net income
$
18,532
$
18,039
$
48,903
$
55,659
Adjusted for:
Interest (Income)/Expense
(6)
(61)
(10)
28
Income tax
3,217
3,211
8,620
9,536
Depreciation and Amortization
9,362
6,201
24,587
17,111
EBITDA
$
31,105
$
27,390
$
82,100
$
82,334
Adjusted for
Stock based compensation
7,625
5,335
21,514
13,762
(Gain)/Loss from revaluation of contingent liability
(1,424)
61
(1,363)
845
Acquisition related costs
224
--
2,329
--
Adjusted EBITDA
$
37,530
$
32,786
$ 104,580
$
96,941
Luxoft Holding, Inc
Schedule of supplemental information (Unaudited)
(In thousands; except percentages)
Revenue for the three Months Ended December 31,
2016
2015
Client location
Amount
% of sales
Amount
% of sales
U.S.
$
71,177
34.4 %
$
52,262
30.4 %
UK
50,230
24.3 %
60,049
34.9 %
Germany
32,471
15.7 %
23,714
13.8 %
Russia
12,633
6.1 %
10,187
5.9 %
Switzerland
8,235
4.0 %
6,136
3.6 %
Singapore
488
0.2 %
2,080
1.2 %
Rest of Europe
23,749
11.5 %
11,956
7.0 %
Other
7,941
3.8 %
5,562
3.2 %
Total
$ 206,924
100 %
$
171,946
100 %
Revenue for the nine months ended December 31,
2016
2015
Client location
Amount
% of sales
Amount
% of sales
U.S.
$ 184,490
31.7 %
$
149,435
31.0 %
UK
168,571
29.0 %
172,041
35.7 %
Germany
85,618
14.7 %
62,122
12.9 %
Russia
27,633
4.8 %
26,225
3.1 %
Switzerland
25,590
4.4 %
14,777
5.4 %
Singapore
3,905
0.7 %
7,218
1.5 %
Rest of Europe
63,766
11.0 %
32,828
6.8 %
Other
21,857
3.7 %
16,897
3.6 %
Total
$ 581,430
100 %
$
481,543
100 %
Revenue for the three Months Ended December 31,
2016
2015
Industry vertical
Amount
% of sales
Amount
% of sales
Financial Services
$ 122,333
59.1 %
$
114,562
66.6 %
Automotive and transport
32,717
15.8 %
23,881
13.9 %
Telecom
17,820
8.6 %
9,306
5.4 %
Technology
13,193
6.4 %
11,361
6.6 %
Healthcare
10,101
4.9 %
--
-- %
Travel and Aviation
6,510
3.1 %
7,754
4.5 %
Energy
3,324
1.6 %
3,241
1.9 %
Other
926
0.5 %
1,841
1.1 %
Total
$ 206,924
100 %
$
171,946
100 %
Revenue for the nine months ended December 31,
2016
2015
Industry vertical
Amount
% of sales
Amount
% of sales
Financial Services
$ 367,837
63.3
%
$
330,808
68.7 %
Automotive and transport
81,396
14.0
%
55,958
11.6 %
Telecom
46,813
8.1
%
27,273
5.7 %
Technology
34,069
5.9
%
33,409
6.9 %
Travel and Aviation
21,598
3.7
%
21,804
4.5 %
Healthcare
18,671
3.2
%
--
-- %
Energy
9,303
1.6
%
9,515
2.0 %
Other
1,743
0.2
%
2,776
0.6
%
Total
$ 581,430
100
%
$
481,543
100
%
LUXOFT HOLDING, INC
Reconciliations of Non-GAAP Forward-looking Financial Measures
to Comparable GAAP Forward-looking Measures
(Unaudited)
(In thousands of US dollars, except share, per share amounts
and percentages)
Year Ended
March 31, 2017
Revenue
$
781,000
Net income
$
55,906
Adjusted for:
Interest Expense
46
Income tax
10,316
Depreciation and Amortization
33,174
EBITDA
$
99,442
Adjusted for:
Stock based compensation
28,274
Loss from revaluation of contingent liability
61
Acquisition related costs
5,177
Adjusted EBITDA
$
132,954
Adjusted EBITDA margin
17.0 %
Net income
$
55,906
Adjusted for:
Stock-based compensation expense
28,274
Amortization of purchased Intangible assets
11,874
Loss from revaluation of contingent liability
61
Acquisition related costs
5,177
Tax effect of the adjustments
(4,649 )
Total adjustment to Net Income
$
40,737
Adjusted Net Income
$
96,643
Diluted weighted average ordinary shares outstanding
33,967,797
Adjusted EPS
$
2.85
Year Ended March 31, 2017
GAAP
Adjustments
Non-GAAP
Net income
$ 55,906
$
40,737
$ 96,643
Diluted earnings per share
$
1.65
$
2.85

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Luxoft Holding, Inc
Alina V. Plaia, +1-212-964-9900 ext. 2404
Vice-President, Global Communications
IR@luxoft.com