We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
EPAM Systems Inc | NYSE:EPAM | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.62 | 0.26% | 237.75 | 240.00 | 235.3515 | 240.00 | 553,466 | 00:17:57 |
|
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
22-3536104
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
|
41 University Drive, Suite 202
Newtown, Pennsylvania
|
18940
|
(Address of principal executive offices)
|
(Zip code)
|
Large accelerated filer
|
x
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
¨
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
¨
|
Emerging growth company
|
¨
|
|
|
Title of Each Class
|
Outstanding as of July 31, 2017
|
Common Stock, par value $0.001 per share
|
52,523,337 shares
|
|
|
Page
|
|
As of
June 30, 2017 |
|
As of
December 31, 2016 |
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
443,501
|
|
|
$
|
362,025
|
|
Restricted cash
|
2,638
|
|
|
2,400
|
|
||
Time deposits
|
403
|
|
|
403
|
|
||
Accounts receivable, net of allowance of $1,419 and $1,434, respectively
|
208,273
|
|
|
199,982
|
|
||
Unbilled revenues
|
107,858
|
|
|
63,325
|
|
||
Prepaid and other current assets, net of allowance of $292 and $644, respectively
|
23,275
|
|
|
15,690
|
|
||
Employee loans, net of allowance of $0 and $0, respectively
|
2,533
|
|
|
2,726
|
|
||
Total current assets
|
788,481
|
|
|
646,551
|
|
||
Property and equipment, net
|
77,115
|
|
|
73,616
|
|
||
Restricted cash
|
277
|
|
|
239
|
|
||
Employee loans, net of allowance of $0 and $0, respectively
|
2,705
|
|
|
3,252
|
|
||
Intangible assets, net
|
49,998
|
|
|
51,260
|
|
||
Goodwill
|
116,239
|
|
|
109,289
|
|
||
Deferred tax assets
|
33,022
|
|
|
31,005
|
|
||
Other long-term assets, net of allowance of $138 and $132, respectively
|
11,546
|
|
|
10,599
|
|
||
Total assets
|
$
|
1,079,383
|
|
|
$
|
925,811
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
||
Accounts payable
|
$
|
4,253
|
|
|
$
|
3,213
|
|
Accrued expenses and other liabilities
|
47,822
|
|
|
49,895
|
|
||
Due to employees
|
41,312
|
|
|
32,203
|
|
||
Deferred compensation due to employees
|
1,172
|
|
|
5,900
|
|
||
Taxes payable
|
35,661
|
|
|
25,008
|
|
||
Total current liabilities
|
130,220
|
|
|
116,219
|
|
||
Long-term debt
|
25,033
|
|
|
25,048
|
|
||
Other long-term liabilities
|
4,424
|
|
|
3,132
|
|
||
Total liabilities
|
159,677
|
|
|
144,399
|
|
||
Commitments and contingencies (Note 8)
|
|
|
|
|
|
||
Stockholders’ equity
|
|
|
|
|
|
||
Common stock, $0.001 par value; 160,000,000 authorized; 52,476,671 and 51,117,422 shares issued, 52,456,936 and 51,097,687 shares outstanding at June 30, 2017 and December 31, 2016, respectively
|
51
|
|
|
50
|
|
||
Additional paid-in capital
|
439,523
|
|
|
374,907
|
|
||
Retained earnings
|
507,060
|
|
|
444,320
|
|
||
Treasury stock
|
(177
|
)
|
|
(177
|
)
|
||
Accumulated other comprehensive loss
|
(26,751
|
)
|
|
(37,688
|
)
|
||
Total stockholders’ equity
|
919,706
|
|
|
781,412
|
|
||
Total liabilities and stockholders’ equity
|
$
|
1,079,383
|
|
|
$
|
925,811
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenues
|
$
|
348,977
|
|
|
$
|
283,832
|
|
|
$
|
673,628
|
|
|
$
|
548,314
|
|
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of revenues (exclusive of depreciation and amortization)
|
220,132
|
|
|
180,782
|
|
|
427,862
|
|
|
348,163
|
|
||||
Selling, general and administrative expenses
|
80,419
|
|
|
64,241
|
|
|
158,872
|
|
|
125,735
|
|
||||
Depreciation and amortization expense
|
7,020
|
|
|
6,123
|
|
|
13,692
|
|
|
11,225
|
|
||||
Other operating expenses, net
|
724
|
|
|
606
|
|
|
1,554
|
|
|
780
|
|
||||
Income from operations
|
40,682
|
|
|
32,080
|
|
|
71,648
|
|
|
62,411
|
|
||||
Interest and other income, net
|
802
|
|
|
1,138
|
|
|
1,386
|
|
|
2,349
|
|
||||
Foreign exchange gain (loss)
|
1,562
|
|
|
(2,295
|
)
|
|
(1,393
|
)
|
|
(3,585
|
)
|
||||
Income before provision for income taxes
|
43,046
|
|
|
30,923
|
|
|
71,641
|
|
|
61,175
|
|
||||
Provision for income taxes
|
5,687
|
|
|
6,493
|
|
|
10,641
|
|
|
12,846
|
|
||||
Net income
|
$
|
37,359
|
|
|
$
|
24,430
|
|
|
$
|
61,000
|
|
|
$
|
48,329
|
|
Foreign currency translation adjustments
|
4,551
|
|
|
(2,386
|
)
|
|
10,937
|
|
|
2,313
|
|
||||
Comprehensive income
|
$
|
41,910
|
|
|
$
|
22,044
|
|
|
$
|
71,937
|
|
|
$
|
50,642
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.72
|
|
|
$
|
0.49
|
|
|
$
|
1.19
|
|
|
$
|
0.97
|
|
Diluted
|
$
|
0.68
|
|
|
$
|
0.46
|
|
|
$
|
1.12
|
|
|
$
|
0.92
|
|
Shares used in calculation of net income per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
51,899
|
|
|
50,211
|
|
|
51,431
|
|
|
49,688
|
|
||||
Diluted
|
54,848
|
|
|
53,271
|
|
|
54,371
|
|
|
52,803
|
|
|
Six Months Ended
June 30, |
||||||
|
2017
|
|
2016
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
61,000
|
|
|
$
|
48,329
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
13,692
|
|
|
11,225
|
|
||
Bad debt expense
|
102
|
|
|
1,730
|
|
||
Deferred income taxes
|
(766
|
)
|
|
69
|
|
||
Stock-based compensation expense
|
28,703
|
|
|
23,694
|
|
||
Excess tax benefit on stock-based compensation plans
|
—
|
|
|
(4,350
|
)
|
||
Other
|
(1,550
|
)
|
|
1,003
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
(Increase) decrease in operating assets:
|
|
|
|
|
|
||
Accounts receivable
|
(4,630
|
)
|
|
(5,466
|
)
|
||
Unbilled revenues
|
(44,133
|
)
|
|
1,623
|
|
||
Prepaid expenses and other assets
|
736
|
|
|
194
|
|
||
Increase (decrease) in operating liabilities:
|
|
|
|
|
|
||
Accounts payable
|
518
|
|
|
461
|
|
||
Accrued expenses and other liabilities
|
(3,333
|
)
|
|
(31,915
|
)
|
||
Due to employees
|
4,549
|
|
|
6,597
|
|
||
Taxes payable
|
4,208
|
|
|
(3,840
|
)
|
||
Net cash provided by operating activities
|
59,096
|
|
|
49,354
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|
||
Purchases of property and equipment
|
(11,441
|
)
|
|
(13,589
|
)
|
||
Employee housing loans issued
|
(512
|
)
|
|
(941
|
)
|
||
Proceeds from repayments of employee housing loans
|
1,315
|
|
|
1,028
|
|
||
Decrease in restricted cash and time deposits, net
|
94
|
|
|
29,991
|
|
||
Acquisition of businesses, net of cash acquired
|
(6,840
|
)
|
|
(2,515
|
)
|
||
Other investing activities, net
|
(190
|
)
|
|
(2,156
|
)
|
||
Net cash (used in) provided by investing activities
|
(17,574
|
)
|
|
11,818
|
|
||
Cash flows from financing activities:
|
|
|
|
|
|
||
Proceeds from stock option exercises
|
37,757
|
|
|
12,578
|
|
||
Excess tax benefit on stock-based compensation plans
|
—
|
|
|
4,350
|
|
||
Payments of withholding taxes related to net share settlements of restricted stock units
|
(2,702
|
)
|
|
—
|
|
||
Proceeds from debt (Note 4)
|
25,000
|
|
|
20,000
|
|
||
Repayment of debt (Note 4)
|
(25,059
|
)
|
|
(15,060
|
)
|
||
Acquisition of business, deferred consideration
|
—
|
|
|
(2,260
|
)
|
||
Other financing activities, net
|
(864
|
)
|
|
135
|
|
||
Net cash provided by financing activities
|
34,132
|
|
|
19,743
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
5,822
|
|
|
360
|
|
||
Net increase in cash and cash equivalents
|
81,476
|
|
|
81,275
|
|
||
Cash and cash equivalents, beginning of period
|
362,025
|
|
|
199,449
|
|
||
Cash and cash equivalents, end of period
|
$
|
443,501
|
|
|
$
|
280,724
|
|
1.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
|
Three Months Ended June 30, 2016
|
||||||||||||
|
As Reported
|
|
After Reclassification
|
||||||||||
|
(in thousands except percentages)
|
||||||||||||
United States
|
$
|
145,882
|
|
|
51.4
|
%
|
|
$
|
147,364
|
|
|
51.9
|
%
|
United Kingdom
|
45,016
|
|
|
15.9
|
%
|
|
45,652
|
|
|
16.1
|
%
|
||
Switzerland
|
32,456
|
|
|
11.4
|
%
|
|
32,596
|
|
|
11.5
|
%
|
||
Canada
|
15,173
|
|
|
5.3
|
%
|
|
15,327
|
|
|
5.4
|
%
|
||
Russia
|
10,484
|
|
|
3.7
|
%
|
|
10,505
|
|
|
3.7
|
%
|
||
Germany
|
9,663
|
|
|
3.4
|
%
|
|
9,736
|
|
|
3.4
|
%
|
||
Hong Kong
|
5,091
|
|
|
1.8
|
%
|
|
5,283
|
|
|
1.9
|
%
|
||
Sweden
|
5,888
|
|
|
2.1
|
%
|
|
6,033
|
|
|
2.1
|
%
|
||
Netherlands
|
3,165
|
|
|
1.1
|
%
|
|
3,326
|
|
|
1.2
|
%
|
||
Belgium
|
2,529
|
|
|
0.9
|
%
|
|
2,571
|
|
|
0.9
|
%
|
||
Ireland
|
1,296
|
|
|
0.5
|
%
|
|
1,304
|
|
|
0.5
|
%
|
||
Italy
|
993
|
|
|
0.4
|
%
|
|
1,006
|
|
|
0.4
|
%
|
||
China
|
413
|
|
|
0.1
|
%
|
|
413
|
|
|
0.1
|
%
|
||
Other locations
|
2,657
|
|
|
0.9
|
%
|
|
2,716
|
|
|
0.9
|
%
|
||
Reimbursable expenses and other revenues
|
3,126
|
|
|
1.1
|
%
|
|
—
|
|
|
—
|
%
|
||
Total
|
$
|
283,832
|
|
|
100.0
|
%
|
|
$
|
283,832
|
|
|
100.0
|
%
|
|
Six Months Ended June 30, 2016
|
||||||||||||
|
As Reported
|
|
After Reclassification
|
||||||||||
|
(in thousands except percentages)
|
||||||||||||
United States
|
$
|
281,440
|
|
|
51.3
|
%
|
|
$
|
284,003
|
|
|
51.8
|
%
|
United Kingdom
|
88,006
|
|
|
16.1
|
%
|
|
89,212
|
|
|
16.3
|
%
|
||
Switzerland
|
63,221
|
|
|
11.5
|
%
|
|
63,448
|
|
|
11.6
|
%
|
||
Canada
|
30,874
|
|
|
5.6
|
%
|
|
31,173
|
|
|
5.7
|
%
|
||
Russia
|
19,436
|
|
|
3.5
|
%
|
|
19,470
|
|
|
3.5
|
%
|
||
Germany
|
18,369
|
|
|
3.4
|
%
|
|
18,475
|
|
|
3.4
|
%
|
||
Hong Kong
|
10,845
|
|
|
2.0
|
%
|
|
11,227
|
|
|
2.0
|
%
|
||
Sweden
|
9,948
|
|
|
1.8
|
%
|
|
10,161
|
|
|
1.9
|
%
|
||
Netherlands
|
5,712
|
|
|
1.0
|
%
|
|
5,973
|
|
|
1.0
|
%
|
||
Belgium
|
4,653
|
|
|
0.9
|
%
|
|
4,723
|
|
|
0.9
|
%
|
||
Ireland
|
2,480
|
|
|
0.5
|
%
|
|
2,490
|
|
|
0.5
|
%
|
||
Italy
|
1,629
|
|
|
0.3
|
%
|
|
1,674
|
|
|
0.3
|
%
|
||
China
|
707
|
|
|
0.1
|
%
|
|
707
|
|
|
0.1
|
%
|
||
Other locations
|
5,422
|
|
|
1.0
|
%
|
|
5,578
|
|
|
1.0
|
%
|
||
Reimbursable expenses and other revenues
|
5,572
|
|
|
1.0
|
%
|
|
—
|
|
|
—
|
%
|
||
Total
|
$
|
548,314
|
|
|
100.0
|
%
|
|
$
|
548,314
|
|
|
100.0
|
%
|
2.
|
GOODWILL
|
|
North America
|
|
Europe
|
|
Total
|
||||||
Balance as of January 1, 2017
|
$
|
76,812
|
|
|
$
|
32,477
|
|
|
$
|
109,289
|
|
Other acquisitions
|
199
|
|
|
4,533
|
|
|
4,732
|
|
|||
Other acquisitions purchase accounting adjustments
|
(285
|
)
|
|
505
|
|
|
220
|
|
|||
Effect of net foreign currency exchange rate changes
|
332
|
|
|
1,666
|
|
|
1,998
|
|
|||
Balance as of June 30, 2017
|
$
|
77,058
|
|
|
$
|
39,181
|
|
|
$
|
116,239
|
|
3.
|
FAIR VALUE MEASUREMENTS
|
|
|
As of December 31, 2016
|
||||||||||||||
|
|
Balance
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Performance-based equity awards
|
|
$
|
3,789
|
|
|
$
|
3,789
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cash-settled restricted stock units
|
|
2,111
|
|
|
2,111
|
|
|
—
|
|
|
—
|
|
||||
Total liabilities measured at fair value on a recurring basis
|
|
$
|
5,900
|
|
|
$
|
5,900
|
|
|
$
|
—
|
|
|
$
|
—
|
|
•
|
for financial instruments that have quoted market prices, those quoted prices are used to estimate fair value;
|
•
|
for financial instruments for which no quoted market prices are available, fair value is estimated using information obtained from independent third parties, or by discounting the expected cash flows using an estimated current market interest rate for the financial instrument.
|
•
|
for financial instruments for which no quoted market prices are available and that have no defined maturity, have a remaining maturity of 360 days or less, or reprice frequently to a market rate, the Company assumes that the fair value of these instruments approximates their reported value, after taking into consideration any applicable credit risk;
|
•
|
cash and cash equivalents;
|
•
|
restricted cash and time deposits;
|
•
|
borrowings under the 2017 Credit Facility (or for the dates prior to May 24, 2017, the 2014 Credit Facility) (Note
4
)
|
|
|
|
|
|
|
Fair Value Hierarchy
|
||||||||||||||
|
|
Balance
|
|
Estimated Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
443,501
|
|
|
$
|
443,501
|
|
|
$
|
443,501
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash and time deposits
|
|
$
|
3,318
|
|
|
$
|
3,318
|
|
|
$
|
—
|
|
|
$
|
3,318
|
|
|
$
|
—
|
|
Employee loans
|
|
$
|
5,238
|
|
|
$
|
5,238
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,238
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings under 2017 Credit Facility
|
|
$
|
25,018
|
|
|
$
|
25,018
|
|
|
$
|
—
|
|
|
$
|
25,018
|
|
|
$
|
—
|
|
|
|
|
|
|
|
Fair Value Hierarchy
|
||||||||||||||
|
|
Balance
|
|
Estimated Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
362,025
|
|
|
$
|
362,025
|
|
|
$
|
362,025
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash and time deposits
|
|
$
|
3,042
|
|
|
$
|
3,042
|
|
|
$
|
—
|
|
|
$
|
3,042
|
|
|
$
|
—
|
|
Employee loans
|
|
$
|
5,978
|
|
|
$
|
5,978
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,978
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings under 2014 Credit Facility
|
|
$
|
25,019
|
|
|
$
|
25,019
|
|
|
$
|
—
|
|
|
$
|
25,019
|
|
|
$
|
—
|
|
4.
|
DEBT
|
5.
|
INCOME TAXES
|
6.
|
STOCK-BASED COMPENSATION
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Cost of revenues
|
$
|
4,189
|
|
|
$
|
4,438
|
|
|
$
|
9,539
|
|
|
$
|
8,082
|
|
Selling, general and administrative expenses - Acquisition related
|
3,277
|
|
|
2,970
|
|
|
7,851
|
|
|
5,980
|
|
||||
Selling, general and administrative expenses - All other
|
5,461
|
|
|
5,322
|
|
|
11,313
|
|
|
9,632
|
|
||||
Total
|
$
|
12,927
|
|
|
$
|
12,730
|
|
|
$
|
28,703
|
|
|
$
|
23,694
|
|
|
Number of
Options
|
|
Weighted Average
Exercise Price
|
|
Aggregate
Intrinsic Value
|
|
Weighted Average
Remaining Contractual Term (in years)
|
|||||
Options outstanding at January 1, 2017
|
6,637,239
|
|
|
$
|
37.20
|
|
|
|
|
|
||
Options granted
|
261,373
|
|
|
$
|
73.40
|
|
|
|
|
|
||
Options exercised
|
(1,277,952
|
)
|
|
$
|
29.57
|
|
|
|
|
|
||
Options forfeited/cancelled
|
(112,646
|
)
|
|
$
|
55.98
|
|
|
|
|
|
||
Options outstanding at June 30, 2017
|
5,508,014
|
|
|
$
|
40.30
|
|
|
$
|
241,196
|
|
|
6.6
|
|
|
|
|
|
|
|
|
|||||
Options vested and exercisable at June 30, 2017
|
3,522,106
|
|
|
$
|
30.97
|
|
|
$
|
187,094
|
|
|
6.0
|
Options expected to vest at June 30, 2017
|
1,890,939
|
|
|
$
|
56.54
|
|
|
$
|
52,095
|
|
|
7.8
|
|
Equity-Classified
Restricted Stock
|
|
Equity-Classified
Equity-Settled
Restricted Stock Units
|
|
Liability-Classified
Cash-Settled
Restricted Stock Units
|
|||||||||||||||
|
Number of
Shares
|
|
Weighted Average Grant Date
Fair Value Per Share
|
|
Number of
Shares
|
|
Weighted Average Grant Date
Fair Value Per Share
|
|
Number of
Shares
|
|
Weighted Average Grant Date
Fair Value Per Share
|
|||||||||
Unvested service-based awards outstanding at January 1, 2017
|
154,125
|
|
|
$
|
40.89
|
|
|
485,188
|
|
|
$
|
67.69
|
|
|
204,501
|
|
|
$
|
70.53
|
|
Awards granted
|
—
|
|
|
$
|
—
|
|
|
419,469
|
|
|
$
|
73.70
|
|
|
168,544
|
|
|
$
|
73.92
|
|
Awards modified
|
—
|
|
|
$
|
—
|
|
|
(2,570
|
)
|
|
$
|
48.49
|
|
|
2,570
|
|
|
$
|
73.27
|
|
Awards vested
|
(136,275
|
)
|
|
$
|
42.88
|
|
|
(118,019
|
)
|
|
$
|
65.27
|
|
|
(52,001
|
)
|
|
$
|
70.56
|
|
Awards forfeited/cancelled
|
—
|
|
|
$
|
—
|
|
|
(36,947
|
)
|
|
$
|
69.52
|
|
|
(4,202
|
)
|
|
$
|
71.62
|
|
Unvested service-based awards outstanding at June 30, 2017
|
17,850
|
|
|
$
|
48.43
|
|
|
747,121
|
|
|
$
|
71.42
|
|
|
319,412
|
|
|
$
|
72.32
|
|
|
Equity-Classified
Restricted Stock
|
|
Liability-Classified
Restricted Stock
|
|
Equity-Classified
Equity-Settled
Restricted Stock Units
|
|||||||||||||||
|
Number of
Shares
|
|
Weighted Average Grant Date
Fair Value Per Share
|
|
Number of
Shares
|
|
Weighted Average Grant Date
Fair Value Per Share
|
|
Number of
Shares
|
|
Weighted Average Grant Date
Fair Value Per Share
|
|||||||||
Unvested performance-based awards outstanding at January 1, 2017
|
5,573
|
|
|
$
|
33.47
|
|
|
105,602
|
|
|
$
|
38.86
|
|
|
4,667
|
|
|
$
|
70.22
|
|
Awards granted
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Awards vested
|
(3,956
|
)
|
|
$
|
27.64
|
|
|
(105,602
|
)
|
|
$
|
38.86
|
|
|
—
|
|
|
$
|
—
|
|
Awards forfeited/cancelled
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
(2,333
|
)
|
|
$
|
70.22
|
|
Unvested performance-based awards outstanding at June 30, 2017
|
1,617
|
|
|
$
|
47.74
|
|
|
—
|
|
|
$
|
—
|
|
|
2,334
|
|
|
$
|
70.22
|
|
7.
|
EARNINGS PER SHARE
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Numerator for basic and diluted earnings per share:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
37,359
|
|
|
$
|
24,430
|
|
|
$
|
61,000
|
|
|
$
|
48,329
|
|
Numerator for basic and diluted earnings per share
|
$
|
37,359
|
|
|
$
|
24,430
|
|
|
$
|
61,000
|
|
|
$
|
48,329
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
|
|
||||||
Weighted average common shares for basic earnings per share
|
51,899
|
|
|
50,211
|
|
|
51,431
|
|
|
49,688
|
|
||||
Net effect of dilutive stock options, restricted stock units and restricted stock awards
|
2,949
|
|
|
3,060
|
|
|
2,940
|
|
|
3,115
|
|
||||
Weighted average common shares for diluted earnings per share
|
54,848
|
|
|
53,271
|
|
|
54,371
|
|
|
52,803
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income per share:
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
$
|
0.72
|
|
|
$
|
0.49
|
|
|
$
|
1.19
|
|
|
$
|
0.97
|
|
Diluted
|
$
|
0.68
|
|
|
$
|
0.46
|
|
|
$
|
1.12
|
|
|
$
|
0.92
|
|
8.
|
COMMITMENTS AND CONTINGENCIES
|
9.
|
SEGMENT INFORMATION
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Segment revenues:
|
|
|
|
|
|
|
|
||||||||
North America
|
$
|
194,025
|
|
|
$
|
157,110
|
|
|
$
|
372,328
|
|
|
$
|
304,600
|
|
Europe
|
141,319
|
|
|
115,726
|
|
|
274,026
|
|
|
223,569
|
|
||||
Russia
|
13,677
|
|
|
11,141
|
|
|
27,370
|
|
|
20,622
|
|
||||
Total segment revenues
|
$
|
349,021
|
|
|
$
|
283,977
|
|
|
$
|
673,724
|
|
|
$
|
548,791
|
|
Segment operating profit:
|
|
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
43,622
|
|
|
$
|
38,339
|
|
|
$
|
80,714
|
|
|
$
|
68,994
|
|
Europe
|
20,658
|
|
|
13,413
|
|
|
40,469
|
|
|
30,245
|
|
||||
Russia
|
1,895
|
|
|
2,876
|
|
|
5,444
|
|
|
4,036
|
|
||||
Total segment operating profit
|
$
|
66,175
|
|
|
$
|
54,628
|
|
|
$
|
126,627
|
|
|
$
|
103,275
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Total segment revenues
|
$
|
349,021
|
|
|
$
|
283,977
|
|
|
$
|
673,724
|
|
|
$
|
548,791
|
|
Other revenues
|
(44
|
)
|
|
(145
|
)
|
|
(96
|
)
|
|
(477
|
)
|
||||
Revenues
|
$
|
348,977
|
|
|
$
|
283,832
|
|
|
$
|
673,628
|
|
|
$
|
548,314
|
|
|
|
|
|
|
|
|
|
||||||||
Total segment operating profit:
|
$
|
66,175
|
|
|
$
|
54,628
|
|
|
$
|
126,627
|
|
|
$
|
103,275
|
|
Unallocated amounts:
|
|
|
|
|
|
|
|
||||||||
Other revenues
|
(44
|
)
|
|
(145
|
)
|
|
(96
|
)
|
|
(477
|
)
|
||||
Stock-based compensation expense
|
(12,927
|
)
|
|
(12,730
|
)
|
|
(28,703
|
)
|
|
(23,694
|
)
|
||||
Taxes other than income taxes
|
(1,795
|
)
|
|
(1,437
|
)
|
|
(5,246
|
)
|
|
(2,517
|
)
|
||||
Professional fees
|
(2,476
|
)
|
|
(2,460
|
)
|
|
(4,820
|
)
|
|
(4,186
|
)
|
||||
Depreciation and amortization
|
(1,905
|
)
|
|
(2,576
|
)
|
|
(3,880
|
)
|
|
(4,267
|
)
|
||||
Bank charges
|
(446
|
)
|
|
(386
|
)
|
|
(843
|
)
|
|
(727
|
)
|
||||
Other acquisition-related expenses
|
(330
|
)
|
|
(307
|
)
|
|
(898
|
)
|
|
(307
|
)
|
||||
Other corporate expenses
|
(5,570
|
)
|
|
(2,507
|
)
|
|
(10,493
|
)
|
|
(4,689
|
)
|
||||
Income from operations
|
40,682
|
|
|
32,080
|
|
|
71,648
|
|
|
62,411
|
|
||||
Interest and other income, net
|
802
|
|
|
1,138
|
|
|
1,386
|
|
|
2,349
|
|
||||
Foreign exchange gain (loss)
|
1,562
|
|
|
(2,295
|
)
|
|
(1,393
|
)
|
|
(3,585
|
)
|
||||
Income before provision for income taxes
|
$
|
43,046
|
|
|
$
|
30,923
|
|
|
$
|
71,641
|
|
|
$
|
61,175
|
|
|
As of
June 30, 2017 |
|
As of
December 31, 2016 |
||||
Belarus
|
$
|
46,500
|
|
|
$
|
46,011
|
|
Russia
|
8,410
|
|
|
7,203
|
|
||
Ukraine
|
5,564
|
|
|
5,610
|
|
||
Hungary
|
3,791
|
|
|
3,485
|
|
||
United States
|
3,403
|
|
|
2,618
|
|
||
Poland
|
2,772
|
|
|
2,213
|
|
||
China
|
1,736
|
|
|
1,887
|
|
||
India
|
1,346
|
|
|
1,650
|
|
||
Other
|
3,593
|
|
|
2,939
|
|
||
Total
|
$
|
77,115
|
|
|
$
|
73,616
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
United States
|
$
|
192,319
|
|
|
$
|
147,364
|
|
|
$
|
369,149
|
|
|
$
|
284,003
|
|
United Kingdom
|
46,112
|
|
|
45,652
|
|
|
92,706
|
|
|
89,212
|
|
||||
Switzerland
|
28,119
|
|
|
32,596
|
|
|
57,215
|
|
|
63,448
|
|
||||
Russia
|
13,326
|
|
|
10,505
|
|
|
26,535
|
|
|
19,470
|
|
||||
Germany
|
14,144
|
|
|
9,736
|
|
|
26,238
|
|
|
18,475
|
|
||||
Canada
|
13,649
|
|
|
15,327
|
|
|
26,143
|
|
|
31,173
|
|
||||
Netherlands
|
12,556
|
|
|
3,326
|
|
|
21,227
|
|
|
5,973
|
|
||||
Sweden
|
8,177
|
|
|
6,033
|
|
|
15,643
|
|
|
10,161
|
|
||||
Hong Kong
|
4,491
|
|
|
5,283
|
|
|
9,268
|
|
|
11,227
|
|
||||
United Arab Emirates
|
3,201
|
|
|
—
|
|
|
5,249
|
|
|
—
|
|
||||
China
|
1,909
|
|
|
413
|
|
|
3,493
|
|
|
707
|
|
||||
Ireland
|
1,600
|
|
|
1,304
|
|
|
2,989
|
|
|
2,490
|
|
||||
Italy
|
1,517
|
|
|
1,006
|
|
|
2,797
|
|
|
1,674
|
|
||||
Belgium
|
1,398
|
|
|
2,571
|
|
|
2,642
|
|
|
4,723
|
|
||||
Other locations
|
6,459
|
|
|
2,716
|
|
|
12,334
|
|
|
5,578
|
|
||||
Total
|
$
|
348,977
|
|
|
$
|
283,832
|
|
|
$
|
673,628
|
|
|
$
|
548,314
|
|
10.
|
RECENT ACCOUNTING PRONOUNCEMENTS
|
•
|
the Company prospectively recognized discrete tax benefits of
$4,138
and
$5,832
in the provision for income taxes within the condensed consolidated statements of income and comprehensive income for the three and six months ended June 30, 2017, respectively, related to excess tax benefits upon vesting and exercise of stock–based awards in those periods;
|
•
|
the Company recognized a
$1,740
increase in retained earnings as of January 1, 2017 for previously unrecognized tax benefits using the modified retrospective method of transition, as required by the standard;
|
•
|
the Company elected to adopt the cash flow presentation of the excess tax benefits prospectively where these benefits are classified along with other income tax cash flows as operating cash flows. Accordingly, prior period information has not been restated;
|
•
|
the Company elected to continue to estimate the number of stock-based awards expected to forfeit, rather than electing to account for forfeitures as they occur to determine the amount of compensation cost to be recognized in each period;
|
•
|
the Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of diluted earnings per share for the three and six months ended June 30, 2017;
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
|
(in thousands, except per share data and percentages)
|
||||||||||||||||||||||||||
Revenues
|
$
|
348,977
|
|
|
100.0
|
%
|
|
$
|
283,832
|
|
|
100.0
|
%
|
|
$
|
673,628
|
|
|
100.0
|
%
|
|
$
|
548,314
|
|
|
100.0
|
%
|
Income from operations
|
$
|
40,682
|
|
|
11.7
|
%
|
|
$
|
32,080
|
|
|
11.3
|
%
|
|
$
|
71,648
|
|
|
10.6
|
%
|
|
$
|
62,411
|
|
|
11.4
|
%
|
Net income
|
$
|
37,359
|
|
|
10.7
|
%
|
|
$
|
24,430
|
|
|
8.6
|
%
|
|
$
|
61,000
|
|
|
9.1
|
%
|
|
$
|
48,329
|
|
|
8.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effective tax rate
|
13.2
|
%
|
|
|
|
21.0
|
%
|
|
|
|
14.9
|
%
|
|
|
|
21.0
|
%
|
|
|
||||||||
Diluted earnings per share
|
$
|
0.68
|
|
|
|
|
$
|
0.46
|
|
|
|
|
|
$
|
1.12
|
|
|
|
|
$
|
0.92
|
|
|
|
•
|
Revenues for the second quarter of
2017
were
$349.0 million
, or a
23.0%
increase from
$283.8 million
reported last year, despite
0.7%
, or
$2.2 million
, of currency headwinds.
|
•
|
Income from operations grew
26.8%
and
14.8%
during the
three and six
months ended
June 30, 2017
as compared to the corresponding periods last year. Expressed as a percentage of revenues, income from operations for the second quarter of 2017 was
11.7%
compared to
11.3%
last year, and
10.6%
and
11.4%
for the first half of 2017 and 2016, respectively. The decrease of
0.8%
on a year to date basis was mainly driven by an increase in selling, general and administrative expenses relative to the growth in revenues driven by higher stock-based compensation and certain one-time charges.
|
•
|
Our effective tax rate was
13.2%
in the second quarter of fiscal
2017
, compared to
21.0%
in the second quarter of last year. The income tax provision for the
second
quarter of 2017 included
$4.1 million
of credits associated with excess tax benefits upon vesting or exercise of equity awards in the
second
quarter of fiscal 2017 bringing the effective tax rate down by
9.6%
.
|
•
|
Net income increased
52.9%
to
$37.4 million
for the three months ended
June 30, 2017
, compared to
$24.4 million
reported in the corresponding period last year. Expressed as a percentage of revenues, net income was
10.7%
, an increase of
2.1%
compared to
8.6%
reported in the corresponding period of
2016
, which was largely driven by an improved effective tax rate.
|
•
|
Diluted earnings per share increased by
$0.22
to
$0.68
in the second quarter of 2017 compared to the second quarter of 2016.
|
•
|
Cash provided by operations increased
$9.7 million
, or
19.7%
, to
$59.1 million
during the six months ended June 30, 2017 as compared to the corresponding period last year.
|
|
Three Months Ended June 30, 2016
|
||||||||||||
|
As Reported
|
|
After Reclassification
|
||||||||||
Client Location
|
(in thousands except percentages)
|
||||||||||||
North America
|
$
|
161,055
|
|
|
56.7
|
%
|
|
$
|
162,691
|
|
|
57.3
|
%
|
Europe
|
102,478
|
|
|
36.1
|
%
|
|
103,757
|
|
|
36.6
|
%
|
||
CIS
|
11,587
|
|
|
4.1
|
%
|
|
11,607
|
|
|
4.1
|
%
|
||
APAC
|
5,586
|
|
|
2.0
|
%
|
|
5,777
|
|
|
2.0
|
%
|
||
Reimbursable expenses and other revenues
|
3,126
|
|
|
1.1
|
%
|
|
—
|
|
|
—
|
%
|
||
Revenues
|
$
|
283,832
|
|
|
100.0
|
%
|
|
$
|
283,832
|
|
|
100.0
|
%
|
|
Six Months Ended June 30, 2016
|
||||||||||||
|
As Reported
|
|
After Reclassification
|
||||||||||
Client Location
|
(in thousands except percentages)
|
||||||||||||
North America
|
$
|
312,314
|
|
|
57.0
|
%
|
|
$
|
315,176
|
|
|
57.5
|
%
|
Europe
|
197,042
|
|
|
35.9
|
%
|
|
199,337
|
|
|
36.3
|
%
|
||
CIS
|
21,734
|
|
|
4.0
|
%
|
|
21,769
|
|
|
4.0
|
%
|
||
APAC
|
11,652
|
|
|
2.1
|
%
|
|
12,032
|
|
|
2.2
|
%
|
||
Reimbursable expenses and other revenues
|
5,572
|
|
|
1.0
|
%
|
|
—
|
|
|
—
|
%
|
||
Revenues
|
$
|
548,314
|
|
|
100.0
|
%
|
|
$
|
548,314
|
|
|
100.0
|
%
|
|
Three Months Ended June 30, 2016
|
||||||||||||
|
As Reported
|
|
After Reclassification
|
||||||||||
Vertical
|
(in thousands except percentages)
|
||||||||||||
Financial Services
|
$
|
72,645
|
|
|
25.6
|
%
|
|
$
|
73,404
|
|
|
25.9
|
%
|
Travel & Consumer
|
63,075
|
|
|
22.2
|
%
|
|
63,799
|
|
|
22.5
|
%
|
||
Software & Hi-Tech
|
57,451
|
|
|
20.2
|
%
|
|
58,003
|
|
|
20.4
|
%
|
||
Media & Entertainment
|
40,804
|
|
|
14.4
|
%
|
|
41,424
|
|
|
14.6
|
%
|
||
Life Sciences & Healthcare
|
27,824
|
|
|
9.8
|
%
|
|
28,050
|
|
|
9.9
|
%
|
||
Emerging Verticals
|
18,907
|
|
|
6.7
|
%
|
|
19,152
|
|
|
6.7
|
%
|
||
Reimbursable expenses and other revenues
|
3,126
|
|
|
1.1
|
%
|
|
—
|
|
|
—
|
%
|
||
Revenues
|
$
|
283,832
|
|
|
100.0
|
%
|
|
$
|
283,832
|
|
|
100.0
|
%
|
|
Six Months Ended June 30, 2016
|
||||||||||||
|
As Reported
|
|
After Reclassification
|
||||||||||
Vertical
|
(in thousands except percentages)
|
||||||||||||
Financial Services
|
$
|
143,535
|
|
|
26.1
|
%
|
|
$
|
144,913
|
|
|
26.4
|
%
|
Travel & Consumer
|
122,679
|
|
|
22.4
|
%
|
|
124,201
|
|
|
22.7
|
%
|
||
Software & Hi-Tech
|
113,362
|
|
|
20.7
|
%
|
|
114,271
|
|
|
20.8
|
%
|
||
Media & Entertainment
|
78,537
|
|
|
14.3
|
%
|
|
79,568
|
|
|
14.5
|
%
|
||
Life Sciences & Healthcare
|
48,699
|
|
|
8.9
|
%
|
|
49,076
|
|
|
9.0
|
%
|
||
Emerging Verticals
|
35,930
|
|
|
6.6
|
%
|
|
36,285
|
|
|
6.6
|
%
|
||
Reimbursable expenses and other revenues
|
5,572
|
|
|
1.0
|
%
|
|
—
|
|
|
—
|
%
|
||
Revenues
|
$
|
548,314
|
|
|
100.0
|
%
|
|
$
|
548,314
|
|
|
100.0
|
%
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
|
(in thousands, except percentages and per share data)
|
||||||||||||||||||||||||||
Revenues
|
$
|
348,977
|
|
|
100.0
|
%
|
|
$
|
283,832
|
|
|
100.0
|
%
|
|
$
|
673,628
|
|
|
100.0
|
%
|
|
$
|
548,314
|
|
|
100.0
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of revenues (exclusive of depreciation and amortization)
(1)
|
220,132
|
|
|
63.1
|
%
|
|
180,782
|
|
|
63.7
|
%
|
|
427,862
|
|
|
63.5
|
%
|
|
348,163
|
|
|
63.5
|
%
|
||||
Selling, general and administrative expenses
(2)
|
80,419
|
|
|
23.0
|
%
|
|
64,241
|
|
|
22.6
|
%
|
|
158,872
|
|
|
23.6
|
%
|
|
125,735
|
|
|
22.9
|
%
|
||||
Depreciation and amortization expense
|
7,020
|
|
|
2.0
|
%
|
|
6,123
|
|
|
2.2
|
%
|
|
13,692
|
|
|
2.0
|
%
|
|
11,225
|
|
|
2.0
|
%
|
||||
Other operating expenses, net
|
724
|
|
|
0.2
|
%
|
|
606
|
|
|
0.2
|
%
|
|
1,554
|
|
|
0.3
|
%
|
|
780
|
|
|
0.2
|
%
|
||||
Income from operations
|
40,682
|
|
|
11.7
|
%
|
|
32,080
|
|
|
11.3
|
%
|
|
71,648
|
|
|
10.6
|
%
|
|
62,411
|
|
|
11.4
|
%
|
||||
Interest and other income, net
|
802
|
|
|
0.2
|
%
|
|
1,138
|
|
|
0.4
|
%
|
|
1,386
|
|
|
0.2
|
%
|
|
2,349
|
|
|
0.5
|
%
|
||||
Foreign exchange gain (loss)
|
1,562
|
|
|
0.4
|
%
|
|
(2,295
|
)
|
|
(0.8
|
)%
|
|
(1,393
|
)
|
|
(0.2
|
)%
|
|
(3,585
|
)
|
|
(0.7
|
)%
|
||||
Income before provision for income taxes
|
43,046
|
|
|
12.3
|
%
|
|
30,923
|
|
|
10.9
|
%
|
|
71,641
|
|
|
10.6
|
%
|
|
61,175
|
|
|
11.2
|
%
|
||||
Provision for income taxes
|
5,687
|
|
|
1.6
|
%
|
|
6,493
|
|
|
2.3
|
%
|
|
10,641
|
|
|
1.5
|
%
|
|
12,846
|
|
|
2.4
|
%
|
||||
Net income
|
$
|
37,359
|
|
|
10.7
|
%
|
|
$
|
24,430
|
|
|
8.6
|
%
|
|
$
|
61,000
|
|
|
9.1
|
%
|
|
$
|
48,329
|
|
|
8.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effective tax rate
|
13.2
|
%
|
|
|
|
21.0
|
%
|
|
|
|
14.9
|
%
|
|
|
|
21.0
|
%
|
|
|
||||||||
Diluted earnings per share
|
$
|
0.68
|
|
|
|
|
$
|
0.46
|
|
|
|
|
|
$
|
1.12
|
|
|
|
|
$
|
0.92
|
|
|
|
|
|
(1)
|
Includes
$4,189
and
$4,438
of stock-based compensation expense for the three months ended
June 30, 2017
and
2016
, respectively, and
$9,539
and
$8,082
of stock-based compensation expense for the
six months ended
June 30, 2017
and
2016
, respectively.
|
(2)
|
Includes
$8,738
and
$8,292
of stock-based compensation expense for the three months ended
June 30, 2017
and
2016
, respectively and
$19,164
and
$15,612
of stock-based compensation expense for the
six months ended
June 30, 2017
and
2016
, respectively.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
|
(in thousands, except percentages)
|
||||||||||||||||||||||||||
North America
|
$
|
205,968
|
|
|
59.0
|
%
|
|
$
|
162,691
|
|
|
57.3
|
%
|
|
$
|
395,292
|
|
|
58.7
|
%
|
|
$
|
315,176
|
|
|
57.5
|
%
|
Europe
|
121,202
|
|
|
34.8
|
%
|
|
103,757
|
|
|
36.6
|
%
|
|
235,514
|
|
|
34.9
|
%
|
|
199,337
|
|
|
36.3
|
%
|
||||
CIS
(1)
|
14,767
|
|
|
4.2
|
%
|
|
11,607
|
|
|
4.1
|
%
|
|
29,308
|
|
|
4.4
|
%
|
|
21,769
|
|
|
4.0
|
%
|
||||
APAC
(1)
|
7,040
|
|
|
2.0
|
%
|
|
5,777
|
|
|
2.0
|
%
|
|
13,514
|
|
|
2.0
|
%
|
|
12,032
|
|
|
2.2
|
%
|
||||
Revenues
(2)
|
$
|
348,977
|
|
|
100.0
|
%
|
|
$
|
283,832
|
|
|
100.0
|
%
|
|
$
|
673,628
|
|
|
100.0
|
%
|
|
$
|
548,314
|
|
|
100.0
|
%
|
|
|
(1)
|
CIS, which stands for the Commonwealth of Independent States, includes revenue from Belarus, Kazakhstan, Russia and Ukraine. APAC, which stands for Asia Pacific, includes revenue from southeast Asia, India and Australia.
|
(2)
|
Includes reimbursable expenses of
$4,167
and
$3,126
for the three months ended
June 30, 2017
and
2016
, respectively; and
$8,092
and
$5,572
for the
six
months ended
June 30, 2017
and
2016
, respectively.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
Segment revenues:
|
|
|
|
|
|
|
|
||||||||
North America
|
$
|
194,025
|
|
|
$
|
157,110
|
|
|
$
|
372,328
|
|
|
$
|
304,600
|
|
Europe
|
141,319
|
|
|
115,726
|
|
|
274,026
|
|
|
223,569
|
|
||||
Russia
|
13,677
|
|
|
11,141
|
|
|
27,370
|
|
|
20,622
|
|
||||
Total segment revenues
|
$
|
349,021
|
|
|
$
|
283,977
|
|
|
$
|
673,724
|
|
|
$
|
548,791
|
|
Segment operating profit:
|
|
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
43,622
|
|
|
$
|
38,339
|
|
|
$
|
80,714
|
|
|
$
|
68,994
|
|
Europe
|
20,658
|
|
|
13,413
|
|
|
40,469
|
|
|
30,245
|
|
||||
Russia
|
1,895
|
|
|
2,876
|
|
|
5,444
|
|
|
4,036
|
|
||||
Total segment operating profit
|
$
|
66,175
|
|
|
$
|
54,628
|
|
|
$
|
126,627
|
|
|
$
|
103,275
|
|
|
Six Months Ended
June 30, |
||||||
|
2017
|
|
2016
(1)
|
||||
|
(in thousands)
|
||||||
Condensed Consolidated Statements of Cash Flow Data:
|
|
|
|
||||
Net cash provided by operating activities
|
$
|
59,096
|
|
|
$
|
49,354
|
|
Net cash (used in) provided by investing activities
|
(17,574
|
)
|
|
11,818
|
|
||
Net cash provided by financing activities
|
34,132
|
|
|
19,743
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
5,822
|
|
|
360
|
|
||
Net increase in cash and cash equivalents
|
81,476
|
|
|
81,275
|
|
||
Cash and cash equivalents, beginning of period
|
362,025
|
|
|
199,449
|
|
||
Cash and cash equivalents, end of period
|
$
|
443,501
|
|
|
$
|
280,724
|
|
|
|
(1)
|
Prior period amounts have not been adjusted for the impact of the adoption of ASU 2016-09, as permitted by the standard.
|
|
Total
|
|
Less than 1
Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More than 5
Years
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Operating lease obligations
|
$
|
104,570
|
|
|
$
|
32,918
|
|
|
$
|
41,219
|
|
|
$
|
20,702
|
|
|
$
|
9,731
|
|
Long-term debt obligation
(1)
|
27,546
|
|
|
532
|
|
|
1,026
|
|
|
25,988
|
|
|
—
|
|
|||||
Long-term incentive plan payouts
(2)
|
26,882
|
|
|
7,787
|
|
|
15,574
|
|
|
3,521
|
|
|
—
|
|
|||||
Total contractual obligations
|
$
|
158,998
|
|
|
$
|
41,237
|
|
|
$
|
57,819
|
|
|
$
|
50,211
|
|
|
$
|
9,731
|
|
|
|
(1)
|
We estimate our future obligations for interest on our floating rate 2017 Credit Facility by assuming the weighted average interest rates in effect on each floating rate debt obligation at June 30, 2017 remain constant into the future. This is an estimate, as actual rates will vary over time. In addition, for the 2017 Credit Facility, we assume that the balance outstanding as of June 30, 2017 remains the same for the remaining term of the agreement. The actual balance outstanding under our 2017 Credit Facility may fluctuate significantly in future periods, depending on the availability of cash flow from operations and future investing and financing considerations.
|
(2)
|
We estimate our future obligations for long-term incentive plan payouts by assuming the price per share of our common stock in effect at June 30, 2017 remains constant into the future. This is an estimate, as actual prices will vary over time.
|
Exhibit
Number
|
|
Description
|
|
|
|
31.1
|
|
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934
|
31.2
|
|
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934
|
32.1
|
|
Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2
|
|
Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
EPAM SYSTEMS, INC.
|
|
|
|
|
|
By:
|
/s/ Arkadiy Dobkin
|
|
|
Name: Arkadiy Dobkin
|
|
|
Title: Chairman, Chief Executive Officer and President
(principal executive officer)
|
|
|
|
|
By:
|
/s/ Jason Peterson
|
|
|
Name: Jason Peterson
|
|
|
Title: Senior Vice President, Chief Financial Officer and Treasurer
(principal financial officer)
|
1 Year EPAM Systems Chart |
1 Month EPAM Systems Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions