Exlservice Holdings, Inc. (NASDAQ:EXLS) Q2 2019 Earnings Conference Call - Final Transcript

Jul 30, 2019 • 08:00 am ET


Exlservice Holdings, Inc. (NASDAQ:EXLS) Q2 2019 Earnings Conference Call - Final Transcript


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Vishal Chhibbar

of $0.06 for the quarter. In addition, we recorded impairment and restructuring charges of $5.6 million for the quarter, which is excluded from our adjusted EPS. As the business winds down, we expect revenues of $10 million to $14 million, which was our expectation in April, with $6.8 million of revenue generated in the first half of the year. In terms of adjusted EPS, there has been a $0.14 loss in the first half, and we remain on track to incur a loss of $0.23 to $0.27 for 2019. Our July 16th, 8-K/A filing stated that we expect to incur pre-tax impairment and restructure charges in the range of $8.5 million to $10 million to wind down the Health Integrated business.

Of that amount, we took a charge of $1.2 million in the first quarter and $5.6 million in the second quarter, totaling to a -- also an amount of $6.8 million for the period. The balance charge of $1.7 million to $3.2 million will be taken in the second half of the year. As the exist costs are one-time costs, they are excluded from adjusted EPS, and not part of our guidance. Cash expenditure in connection with the wind down, are estimated to be in the range of $7 million to $8 million.

Now, moving to our guidance for 2019. We are increasing our revenue guidance to $976 million to $996 million from $969 million to $996 million, based upon our first half performance and our increased visibility for rest of the year. This includes $10 million to $14 million of Health Integrated revenues as mentioned earlier. This guidance represents a year-on-year growth of 11% to 13% on a constant currency basis and 8% to 10 % on our organic basis, excluding Health Integrated. Our adjusted EPS guidance has increased $2.86 to $2.98 from $2.83 to $2.98. Excluding Health Integrated, our adjusted EPS range has increased to $3.13 to $3.21.

As Rohit mentioned, the business is healthy in our larger segments of insurance, finance and accounting and analytics. In addition, healthcare has generated positive revenue growth this year. We have achieved 9% organic revenue growth for the first half of the year, and have met the financial goals we set out to achieve at the beginning of the year.

And now, Rohit and I will be happy to take questions.