EPAM Stories Outcomes for Fourth Quarter and Full 12 months 2018 – PRNewswire


NEWTOWN, Pa., Feb. 14, 2019 /PRNewswire/ — EPAM Programs, Inc. (NYSE: EPAM), a number one international supplier of digital platform engineering and software program growth companies, right now introduced outcomes for its fourth quarter and full yr ended December 31, 2018.

“Our give attention to growing true partnerships with our prospects, attracting and growing the precise expertise, and repeatedly evolving our capabilities drove our robust fiscal 2018 outcomes,” stated Arkadiy Dobkin, CEO & President, EPAM. “Demand for profitable transformation methods is simply growing, and we’re well-positioned to assist our purchasers derive new enterprise worth and stay aggressive.”

Fourth Quarter 2018 Highlights

  • Revenues elevated to $504.9 million, a year-over-year improve of $105.6 million, or 26.5%, and on a continuing foreign money foundation, revenues had been up 28.9% over the corresponding interval final yr;
  • GAAP earnings from operations was $78.Three million, a rise of $26.2 million, or 50.4% , in comparison with $52.1 million within the fourth quarter of 2017;
  • Non-GAAP earnings from operations was $93.1 million, a rise of $26.1 million, or 39.0%, in comparison with $66.9 million within the fourth quarter of 2017;
  • Diluted earnings per share (“EPS”) on a GAAP foundation was $1.05, in comparison with $(0.58) within the fourth quarter of 2017, based mostly on a weighted common share depend of 56.9 million totally diluted shares excellent. The fourth quarter of 2017 was negatively impacted by the $74.6 million provisional cost associated to U.S. tax reform; and
  • Non-GAAP diluted EPS was $1.27, a rise of $0.26, or 25.7%, in comparison with $1.01 within the fourth quarter of 2017.

Full 12 months 2018 Highlights

  • Revenues elevated to $1.84 billion, a year-over-year improve of $392.5 million, or 27.1%, and on a continuing foreign money foundation, revenues had been up 26.9% year-over-year;
  • GAAP earnings from operations was $245.Eight million, a rise of $72.Eight million, or 42.1%, in comparison with $172.9 million in 2017;
  • Non-GAAP earnings from operations was $315.1 million, a rise of $80.5 million, or 34.3%, in comparison with $234.7 million in 2017;
  • Diluted EPS on a GAAP foundation was $4.24, in comparison with $1.32 in 2017 based mostly on a weighted common share depend of 56.7 million totally diluted shares excellent. GAAP diluted EPS in 2018 benefited from the popularity of $26.Zero million of internet deferred tax property ensuing from the implementation of modifications to our tax construction in response to U.S. tax reform. GAAP diluted EPS in 2017 was negatively impacted by the $74.6 million provisional cost associated to U.S. tax reform; and
  • Non-GAAP diluted EPS was $4.38, a rise of $0.92, or 26.6%, in comparison with $3.46 in 2017.

Money Movement and Different Metrics

  • Money offered by working actions was $123.1 million within the fourth quarter of 2018, a rise from $71.2 million within the fourth quarter of 2017; and was $292.2 million in 2018, a rise from $192.Eight million in 2017;
  • Money, money equivalents and restricted money totaled $771.7 million as of December 31, 2018, a rise of $188.Eight million, or 32.4%, from $582.9 million as of December 31, 2017; and
  • Whole headcount was roughly 30,200 as of December 31, 2018. Included on this quantity had been roughly 26,800 supply professionals, a rise of 16.4% from December 31, 2017.

2019 Outlook – Full 12 months and First Quarter

Full 12 months

  • Income progress for 2019 will probably be no less than 22%. The Firm expects that overseas foreign money translation may have a 1% unfavorable impression on full yr reported revenues. The Firm expects income progress on a continuing foreign money foundation will probably be no less than 23%;
  • The Firm expects GAAP earnings from operations to be within the vary of 12.5% to 13.5% of revenues and non-GAAP earnings from operations to be within the vary of 16% to 17% of revenues;
  • The Firm expects its GAAP efficient tax fee to be roughly 16% and its non-GAAP efficient tax fee to be roughly 23%; and
  • The Firm expects GAAP diluted EPS will probably be no less than $4.45 for the total yr, and non-GAAP diluted EPS will probably be no less than $5.06 for the total yr. The Firm expects weighted common share depend for the yr of 57.9 million diluted shares excellent.

First Quarter

  • Revenues will probably be no less than $518 million for the primary quarter, reflecting a year-over-year progress fee of no less than 22%. The Firm expects overseas foreign money translation to have a 3% unfavorable impression on year-over-year income progress throughout the quarter. The Firm expects year-over-year income progress on a continuing foreign money foundation to be no less than 25%;
  • For the primary quarter, the Firm expects GAAP earnings from operations to be within the vary of 12% to 13% of revenues and non-GAAP earnings from operations to be within the vary of 16% to 17% of revenues;
  • The Firm expects its GAAP efficient tax fee to be roughly 12% and its non-GAAP efficient tax fee to be roughly 23%; and
  • The Firm expects GAAP diluted EPS will probably be no less than $1.00 for the quarter, and non-GAAP diluted EPS will probably be no less than $1.16 for the quarter. The Firm expects weighted common share depend for the quarter of 57.5 million diluted shares excellent.

Convention Name Info

EPAM will host a convention name to debate outcomes on Thursday, February 14, 2019 at 8:00 a.m. Jap time. The dwell convention name will probably be obtainable by dialing +1 (877) 407-0784 or +1 (201) 689-8560 (exterior of the U.S.). A webcast of the convention name may be accessed on the Investor Relations part of the Firm’s web site at http://buyers.epam.com. A replay will probably be obtainable roughly one hour after the decision by dialing +1 (844) 512-2921 or +1 (412) 317-6671 (exterior of the U.S.) and getting into the convention ID 13686259. The replay will probably be obtainable till February 28, 2019.

About EPAM Programs
Since 1993, EPAM Programs, Inc. (NYSE: EPAM) has leveraged its software program engineering experience to turn into a number one international product growth, digital platform engineering, and high digital and product design company. By way of its ‘Engineering DNA’ and revolutionary technique, consulting, and design capabilities, EPAM works in collaboration with its prospects to ship next-gen options that flip advanced enterprise challenges into actual enterprise outcomes. EPAM’s international groups serve prospects in over 25 nations throughout North America, Europe, Asia and Australia. EPAM is a acknowledged market chief in a number of classes amongst high international unbiased analysis companies and was one among solely 4 know-how corporations to seem on Forbes 25 Quickest Rising Public Tech Firms checklist yearly of publication since 2013. Study extra at http://www.epam.com/ and comply with us on Twitter @EPAMSYSTEMS and LinkedIn.

Non-GAAP Monetary Measures

EPAM dietary supplements outcomes reported in accordance with United States typically accepted accounting rules, known as GAAP, with non-GAAP monetary measures. Administration believes these measures assist illustrate underlying developments in EPAM’s enterprise and makes use of the measures to determine budgets and operational targets, talk internally and externally, for managing EPAM’s enterprise and evaluating its efficiency. Administration additionally believes these measures assist buyers examine EPAM’s working efficiency with its ends in prior intervals. EPAM anticipates that it’s going to proceed to report each GAAP and sure non-GAAP monetary measures in its monetary outcomes, together with non-GAAP outcomes that exclude stock-based compensation bills, write-offs and recoveries, acquisition-related prices, amortization of bought intangible property, goodwill impairment, sure different one-time expenses and advantages, modifications in honest worth of contingent consideration, overseas change features and losses, the impression of U.S. tax reform, extra tax advantages associated to stock-based compensation, and the associated impact on earnings taxes of the pre-tax changes. Administration additionally compares working outcomes on a foundation of “fixed foreign money,” which can also be a non-GAAP monetary measure. This measure excludes the impact of overseas foreign money change fee fluctuations by translating the present interval revenues and bills into U.S. {dollars} on the weighted common change charges of the prior interval of comparability. As a result of EPAM’s reported non-GAAP monetary measures aren’t calculated in accordance with GAAP, these measures aren’t akin to GAAP and will not be akin to equally described non-GAAP measures reported by different corporations inside EPAM’s business. Consequently, EPAM’s non-GAAP monetary measures shouldn’t be evaluated in isolation or supplant comparable GAAP measures, however somewhat, ought to be thought-about along with the data in EPAM’s consolidated monetary statements, that are ready in accordance with GAAP.

Ahead-Wanting Statements

This press launch contains statements which can represent forward-looking statements made pursuant to the secure harbor provisions of the Personal Securities Litigation Reform Act of 1995, the accuracy of that are essentially topic to dangers, uncertainties, and assumptions as to future occasions that won’t show to be correct. Elements that would trigger precise outcomes to vary materially from these expressed or implied embrace basic financial circumstances and the components mentioned within the Firm’s most up-to-date Annual Report on Type 10-Okay and different filings with the Securities and Trade Fee. EPAM undertakes no obligation to replace or revise any forward-looking statements, whether or not on account of new data, future occasions, or in any other case, besides as could also be required underneath relevant securities regulation.

EPAM SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)

(In 1000’s, besides per share information)






Three Months Ended
December 31,


12 months Ended December 31,


2018


2017


2018


2017

Revenues

$

504,931



$

399,297



$

1,842,912



$

1,450,448


Working bills:








Price of revenues (unique of depreciation and 
     amortization)

319,031



254,121



1,186,921



921,352


Promoting, basic and administrative bills

97,447



85,430



373,587



327,588


Depreciation and amortization expense

10,183



7,696



36,640



28,562


Revenue from operations

78,270



52,050



245,764



172,946


Curiosity and different earnings, internet

1,080



1,799



3,522



4,601


International change (loss)/acquire

(582)



(1,772)



487



(3,242)


Revenue earlier than provision for earnings taxes

78,768



52,077



249,773



174,305


Provision for earnings taxes

18,803



82,951



9,517



101,545


Web earnings/(loss)

$

59,965



$

(30,874)



$

240,256



$

72,760


International foreign money translation changes, internet of tax

(6,695)



3,425



(21,338)



20,065


Unrealized loss on cash-flow hedging devices, internet of tax

(472)





(2,553)




Complete earnings/(loss)

$

52,798



$

(27,449)



$

216,365



$

92,825










Web earnings/(loss) per share:








Fundamental

$

1.11



$

(0.58)



$

4.48



$

1.40


Diluted

$

1.05



$

(0.58)



$

4.24



$

1.32


Shares utilized in calculation of internet earnings/(loss) per share:








Fundamental

54,031



52,879



53,623



52,077


Diluted

56,887



52,879



56,673



54,984


EPAM SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In 1000’s, besides share and per share information)






As of
December 31, 
2018


As of
December 31, 
2017

Property




Present property




Money and money equivalents

$

770,560



$

582,585


Accounts receivable, internet of allowance of $1,557 and $1,186, respectively

297,685



265,639


Unbilled revenues

104,652



86,500


Pay as you go and different present property

26,171



25,309


Whole present property

1,199,068



960,033


Property and tools, internet

102,646



86,419


Intangible property, internet

57,065



44,511


Goodwill

166,832



119,531


Deferred tax property

69,983



24,974


Different noncurrent property

16,208



14,788


Whole property

$

1,611,802



$

1,250,256






Liabilities




Present liabilities




Accounts payable

$

7,444



$

5,574


Accrued bills and different present liabilities

127,937



89,812


On account of staff

49,683



38,757


Deferred compensation as a result of staff

9,920



5,964


Taxes payable, present

67,845



40,860


Whole present liabilities

262,829



180,967


Lengthy-term debt

25,031



25,033


Taxes payable, noncurrent

43,685



59,874


Different noncurrent liabilities

17,661



9,435


Whole liabilities

349,206



275,309


Commitments and contingencies




Stockholders’ fairness




Frequent inventory, $0.001 par worth; 160,000,00Zero licensed; 54,099,927 and 53,003,420
 shares issued, 54,080,192 and 52,983,685 shares excellent at December 31, 2018
 and December 31, 2017, respectively

54



53


Extra paid-in capital

544,700



473,874


Retained earnings

759,533



518,820


Treasury inventory

(177)



(177)


Gathered different complete loss

(41,514)



(17,623)


Whole stockholders’ fairness

1,262,596



974,947


Whole liabilities and stockholders’ fairness

$

1,611,802



$

1,250,256


EPAM SYSTEMS, INC. AND SUBSIDIARIES

Reconciliations of Non-GAAP Monetary Measures to Comparable GAAP Monetary Measures

(Unaudited)

(In 1000’s, besides p.c and per share quantities)


Reconciliation of income progress at fixed foreign money to income progress as reported underneath GAAP is offered within the desk under:







Three Months Ended
December 31, 2018


12 months Ended
December 31, 2018

Income progress at fixed foreign money(1)

28.9

%


26.9

%

International change charges impression

(2.4)

%


0.2

%

Income progress as reported

26.5

%


27.1

%


(1)

Fixed foreign money income outcomes are calculated by translating present interval revenues in native foreign money into U.S.
{dollars} on the weighted common change charges of the comparable prior interval.

Reconciliation of assorted earnings assertion quantities from GAAP to non-GAAP for the three months and years ended
December 31, 2018 and 2017:



Three Months Ended December 31, 2018


12 months Ended December 31, 2018


GAAP


Changes


Non-GAAP


GAAP


Changes


Non-GAAP

Price of revenues (unique of 
     depreciation and amortization)(2)

$

319,031



$

(4,410)



$

314,621



$    1,186,921


$

(27,245)



$    1,159,676

Promoting, basic and administrative 
     bills(3)

$

97,447



$

(8,081)



$

89,366



$

373,587



$

(33,998)



$

339,589


Revenue from operations(4)

$

78,270



$

14,792



$

93,062



$

245,764



$

69,344



$

315,108


Working margin

15.5

%


2.9

%


18.4

%


13.3

%


3.8

%


17.1

%

Web earnings(5)

$

59,965



$

12,359



$

72,324



$

240,256



$

7,754



$

248,010


Weighted common diluted shares 
     excellent(6)

56,887





56,887



56,673





56,673


Diluted earnings per share

$

1.05





$

1.27



$

4.24





$

4.38



Three Months Ended December 31, 2017


12 months Ended December 31, 2017


GAAP


Changes


Non-GAAP


GAAP


Changes


Non-GAAP

Price of revenues (unique of 
 depreciation and amortization)(2)

$

254,121



$

(6,416)



$

247,705



$

921,352



$

(20,868)



$

900,484


Promoting, basic and administrative 
 bills(3)

$

85,430



$

(6,625)



$

78,805



$

327,588



$

(33,281)



$

294,307


Revenue from operations(4)

$

52,050



$

14,897



$

66,947



$

172,946



$

61,711



$

234,657


Working margin

13.0

%


3.8

%


16.8

%


11.9

%


4.3

%


16.2

%

Web (loss)/earnings(5)

$

(30,874)



$

87,500



$

56,626



$

72,760



$

117,542



$

190,302


Weighted common diluted shares 
  excellent(6)

52,879



3,065



55,944



54,984





54,984


Diluted (loss)/earnings per share

$

(0.58)





$

1.01



$

1.32





$

3.46






















Objects (2) by way of (5) above are detailed within the desk under with the precise cross-reference famous within the applicable
merchandise.


Three Months Ended
 December 31,


12 months Ended
 December 31,


2018


2017


2018


2017

Inventory-based compensation bills

$

4,410



$

6,416



$

27,245



$

20,868


Whole changes to GAAP value of revenues(2)

4,410



6,416



27,245



20,868


Inventory-based compensation bills

8,042



6,071



31,943



31,539


Different acquisition-related bills

209



570



916



1,500


One-time (recoveries)/expenses

(170)



(16)



1,139



242


Whole changes to GAAP promoting, basic and 
  administrative bills(3)

8,081



6,625



33,998



33,281


Amortization of bought intangible property

2,301



1,856



8,101



7,562


Whole changes to GAAP earnings from operations(4)

14,792



14,897



69,344



61,711


Change in honest worth of contingent consideration included in
Curiosity and different earnings, internet





(900)




International change (loss)/acquire

582



1,772



(487)



3,242


Provision for/(profit from) earnings taxes:








Tax impact on non-GAAP changes

(1,855)



(2,946)



(12,862)



(12,736)


Web discrete cost/(profit) associated to U.S. tax reform

13



74,632



(29,971)



74,632


Extra tax advantages associated to stock-based compensation

(1,173)



(855)



(17,370)



(9,307)


Whole changes to GAAP internet earnings/(loss)(5)

$

12,359



$

87,500



$

7,754



$

117,542


















 

(6) There was a 3,065 improve to the shares used within the calculation of diluted earnings per share on a non-GAAP 
     foundation throughout the three months ended December 31, 2017 as these shares had been excluded from the calculation of 
     diluted loss per share on a GAAP foundation as a result of anti-dilutive impact of those shares on account of the web loss in 
     the interval. There have been no changes to GAAP weighted-average diluted frequent shares excellent within the

     calculation of diluted earnings per share on a non-GAAP foundation throughout the three months ended December 31,      

     2018 and twelve months ended December 31, 2018 and 2017.


EPAM SYSTEMS, INC. AND SUBSIDIARIES

Reconciliations of Steering Non-GAAP Measures to Comparable GAAP Measures

(Unaudited)

(In p.c, besides per share quantities)


The under steering constitutes forward-looking statements throughout the that means of the federal securities legal guidelines and is predicated on a lot of assumptions which are topic to alter and plenty of of that are exterior the management of the Firm. Precise outcomes could differ materially from the Firm’s expectations relying on components mentioned within the Firm’s filings with the Securities and Trade Fee.


Reconciliation of projected income progress in fixed foreign money is offered within the desk under:






First Quarter 2019


Full 12 months 2019

Income progress at fixed foreign money (no less than)(7)

25

%


23

%

International change charges impression

(3)

%


(1)

%

Income progress (no less than)

22

%


22

%



(7)

Fixed foreign money income outcomes are calculated by translating present interval projected revenues in native foreign money into U.S. {dollars} on the weighted common change charges of the comparable prior interval.

Reconciliation of projected GAAP to non-GAAP earnings from operations as a proportion of revenues is offered within the desk under:






First Quarter 2019


Full 12 months 2019

GAAP earnings from operations as a proportion of revenues

12% to 13%


12.5% to 13.5%

Inventory-based compensation bills

3.5

%


3.0

%

Included in value of revenues (unique of depreciation and amortization)

1.7

%


1.4

%

Included in promoting, basic and administrative bills

1.8

%


1.6

%

Amortization of bought intangible property

0.5

%


0.5

%

Non-GAAP earnings from operations as a proportion of revenues

16% to 17%


16% to 17%

Reconciliation of projected GAAP to non-GAAP efficient tax fee is offered within the desk under:






First Quarter 2019


Full 12 months 2019

GAAP efficient tax fee (roughly)

12

%


16

%

Tax impact on non-GAAP changes

4.3

%


2.9

%

Extra tax advantages associated to stock-based compensation

6.7

%


4.1

%

Non-GAAP efficient tax fee (roughly)

23

%


23

%

Reconciliation of projected GAAP to non-GAAP diluted earnings per share is offered within the desk under:






First Quarter 2019


Full 12 months 2019

GAAP diluted earnings per share (no less than)

$

1.00



$

4.45


Inventory-based compensation bills

0.31



1.11


Included in value of revenues (unique of depreciation and amortization)

0.15



0.54


Included in promoting, basic and administrative bills

0.16



0.57


Amortization of bought intangible property

0.04



0.16


International change loss

0.01



0.02


Provision for earnings taxes:




     Tax impact on non-GAAP changes

(0.08)



(0.29)


     Extra tax advantages associated to stock-based compensation

(0.12)



(0.39)


Non-GAAP diluted earnings per share (no less than)

$

1.16



$

5.06


SOURCE EPAM Programs, Inc.

Associated Hyperlinks

http://www.epam.com



Supply hyperlink

Leave a Reply

Your email address will not be published. Required fields are marked *