UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
____________________
Form 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
____________________
Date of Report (Date of earliest event reported): March 26, 2015
Accenture plc
(Exact name of Registrant as specified in its charter)
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Ireland | | 001-34448 | | 98-0627530 |
(State or other jurisdiction
of incorporation) | | (Commission File Number) | | (I.R.S. Employer Identification No.) |
1 Grand Canal Square,
Grand Canal Harbour,
Dublin 2, Ireland
(Address of principal executive offices)
Registrant’s telephone number, including area code: (353) (1) 646-2000
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition
On March 26, 2015, Accenture plc (“Accenture”) issued a news release announcing financial results for its second quarter of fiscal year 2015, which fiscal quarter ended on February 28, 2015.
A copy of the news release is attached hereto as Exhibit 99. All information in the news release is furnished but not filed.
Non-GAAP Financial Information
In the attached news release Accenture discloses the following non-GAAP financial measures:
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• | Free cash flow (defined as operating cash flow net of property and equipment additions). Accenture’s management believes that this information provides meaningful additional information regarding the company’s liquidity. |
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• | Percentage changes in revenues before reimbursements (“net revenues”) on a local currency basis. Financial results in local currency are calculated by restating current period activity into U.S. dollars using the comparable prior year period’s foreign currency exchange rates. This approach is used for all results where the functional currency is not the U.S. dollar. Accenture’s management believes that information regarding changes in its net revenues that excludes the effect of fluctuations in foreign currency exchange rates facilitates meaningful comparison of its net revenues before reimbursements. |
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• | Earnings per share business outlook and operating margin business outlook excluding the non-cash charge related to the settlement of certain U.S. pension obligations. Accenture’s management believes that information regarding the effect of the settlement charge on earnings per share and operating margin facilitates understanding as to both the impact of the settlement charge and the company’s operating performance. |
Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are included in the news release. While Accenture’s management believes that this non-GAAP financial information is useful in evaluating Accenture’s operations, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
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| | | |
99 |
| | News Release of Accenture, dated March 26, 2015 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
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Date: March 26, 2015 | ACCENTURE PLC |
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| By: | | /s/ Julie Spellman Sweet |
| Name: | | Julie Spellman Sweet |
| Title: | | General Counsel, Secretary & Chief Compliance Officer
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EXHIBIT INDEX
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Exhibit No. | Description |
99 | News Release of Accenture, dated March 26, 2015 |
Exhibit 99
Accenture Reports Strong Second-Quarter Fiscal 2015 Results
— Revenues increase 5% in U.S. dollars and 12% in local currency to $7.5 billion —
— EPS up 5%, to $1.08 —
— Operating income increases 7%, to $1.02 billion, with operating margin of 13.6%, an
expansion of 30 basis points —
— New bookings are $9.4 billion, with consulting bookings of $4.2 billion
and outsourcing bookings of $5.1 billion —
— Company declares semi-annual cash dividend of $1.02 per share —
— Accenture raises outlook for full-year revenue growth to 8-10% in local currency; updates
other business outlook metrics for full fiscal year, including foreign-exchange assumption —
NEW YORK; Mar. 26, 2015 — Accenture (NYSE: ACN) reported financial results for the second quarter of fiscal 2015, ended Feb. 28, 2015, with net revenues of $7.5 billion, an increase of 5 percent in U.S. dollars and 12 percent in local currency over the same period last year. Diluted earnings per share were $1.08, an increase of $0.05, or 5 percent, over the same period last year.
Operating income was $1.02 billion, an increase of 7 percent over the same period last year, and operating margin was 13.6 percent, a year-over-year expansion of 30 basis points.
New bookings for the quarter were $9.4 billion, with consulting bookings of $4.2 billion and outsourcing bookings of $5.1 billion.
Pierre Nanterme, Accenture’s chairman and CEO, said, “We are extremely pleased with our very strong financial results for the second quarter and first half of fiscal 2015. Our revenue growth of 12 percent in the second quarter was again broad-based across the different dimensions of our business, and we gained significant market share. We delivered excellent new bookings of $9.4 billion, demonstrating that our services continue to be highly relevant to our clients. Based on our continued momentum and very strong performance in the first half, we are raising our business outlook for revenues for the full fiscal year.
“Our growth strategy and the focused investments we have made across our business are clearly differentiating Accenture in the marketplace—particularly in digital, where we delivered revenue growth of more than 20 percent in local currency in the first half of the fiscal year. We continue to invest to further differentiate our capabilities and to enhance our competitiveness. We remain confident in our ability to continue driving sustainable, profitable growth and delivering value for our clients and shareholders.”
Financial Review
Revenues before reimbursements (“net revenues”) for the second quarter of fiscal 2015 were $7.49 billion, compared with $7.13 billion for the second quarter of fiscal 2014, an increase of 5 percent in U.S. dollars and 12 percent in local currency. Net revenues for the quarter reflect a foreign-exchange impact of negative 6.5 percent, compared with the negative 5 percent we had previously assumed. Adjusting for the actual foreign-exchange impact of negative 6.5 percent in the quarter, the company’s guided range for quarterly net revenues was $7.15 billion to $7.40 billion. Accenture’s second quarter fiscal 2015 net revenues were $90 million above this adjusted range.
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▪ | Consulting net revenues for the quarter were $3.84 billion, an increase of 4 percent in U.S. dollars and 11 percent in local currency compared with the second quarter of fiscal 2014. |
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▪ | Outsourcing net revenues were $3.65 billion, an increase of 6 percent in U.S. dollars and 13 percent in local currency over the second quarter of fiscal 2014. |
Diluted EPS for the quarter were $1.08, compared with $1.03 for the second quarter last year. The $0.05 increase in EPS reflects:
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▪ | $0.08 from higher revenue and operating results; and |
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▪ | $0.02 from a lower share count; |
partially offset by
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▪ | $0.02 from lower non-operating income; and |
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▪ | $0.03 from a higher effective tax rate. |
Gross margin (gross profit as a percentage of net revenues) for the quarter was 29.9 percent, compared with 31.3 percent for the second quarter last year. Selling, general and administrative (SG&A) expenses for the quarter were $1.22 billion, or 16.3 percent of net revenues, compared with $1.28 billion, or 17.9 percent of net revenues, for the second quarter last year.
Operating income for the quarter increased 7 percent, to $1.02 billion, or 13.6 percent of net revenues, compared with $951 million, or 13.3 percent of net revenues, for the second quarter of fiscal 2014.
The company’s effective tax rate for the quarter was 26.0 percent, compared with 24.0 percent for the second quarter last year.
Net income for the quarter was $743 million, compared with $722 million for the second quarter last year, a 3 percent increase.
Operating cash flow for the quarter was $301 million, and property and equipment additions were $82 million. Free cash flow, defined as operating cash flow net of property and equipment
additions, was $220 million. For the same period last year, operating cash flow was $292 million; property and equipment additions were $76 million; and free cash flow was $216 million.
Days services outstanding, or DSOs, were 35 days at Feb. 28, 2015, compared with 36 days at Aug. 31, 2014 and 33 days at Feb. 28, 2014.
Accenture’s total cash balance at Feb. 28, 2015 was $4.1 billion, compared with $4.9 billion at Aug. 31, 2014.
Utilization for the quarter was 91 percent, compared with 91 percent for the first quarter of fiscal 2015.
Attrition for the second quarter of fiscal 2015 was 14 percent, compared with 13 percent for the first quarter of fiscal 2015 and 12 percent for the second quarter of fiscal 2014.
New Bookings
New bookings for the second quarter were $9.4 billion and reflect a negative 6 percent foreign-currency impact compared with new bookings in the second quarter last year.
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▪ | Consulting new bookings were $4.2 billion, or 45 percent of total new bookings. |
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▪ | Outsourcing new bookings were $5.1 billion, or 55 percent of total new bookings. |
Net Revenues by Operating Group
Net revenues by operating group were as follows:
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▪ | Communications, Media & Technology: $1.52 billion, compared with $1.41 billion for the second quarter of fiscal 2014, an increase of 8 percent in U.S. dollars and 15 percent in local currency. |
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▪ | Financial Services: $1.59 billion, compared with $1.56 billion for the second quarter of fiscal 2014, an increase of 2 percent in U.S. dollars and 9 percent in local currency. |
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▪ | Health & Public Service: $1.32 billion, compared with $1.18 billion for the second quarter of fiscal 2014, an increase of 12 percent in U.S. dollars and 15 percent in local currency. |
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▪ | Products: $1.85 billion, compared with $1.75 billion for the second quarter of fiscal 2014, an increase of 6 percent in U.S. dollars and 13 percent in local currency. |
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▪ | Resources: $1.21 billion, compared with $1.22 billion for the second quarter of fiscal 2014, a decrease of 1 percent in U.S. dollars and an increase of 6 percent in local currency. |
Net Revenues by Geographic Region*
Net revenues by geographic region* for the second quarter of fiscal 2015 were as follows:
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▪ | North America: $3.41 billion, compared with $3.03 billion for the second quarter of fiscal 2014, an increase of 13 percent in both U.S. dollars and local currency. |
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▪ | Europe: $2.66 billion, compared with $2.72 billion for the second quarter of fiscal 2014, a decrease of 2 percent in U.S. dollars and an increase of 9 percent in local currency. |
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▪ | Growth Markets: $1.42 billion, compared with $1.38 billion for the second quarter of fiscal 2014, an increase of 3 percent in U.S. dollars and 12 percent in local currency. |
*Beginning in fiscal 2015, the company is reporting its geographic regions as follows: North America (the United States and Canada); Europe; and Growth Markets (Asia Pacific, Latin America, Africa, the Middle East, Russia and Turkey). Previously, the company’s three geographic regions were the Americas; EMEA (Europe, the Middle East and Africa); and Asia Pacific.
Returning Cash to Shareholders
Accenture continues to return cash to shareholders through cash dividends and share repurchases.
Dividend
Accenture plc has declared a semi-annual cash dividend of $1.02 per share on Accenture plc Class A ordinary shares for shareholders of record at the close of business on April 10, 2015, and Accenture SCA will declare a semi-annual cash dividend of $1.02 per share on Accenture SCA Class I common shares for shareholders of record at the close of business on April 7, 2015. These dividends are both payable on May 15, 2015.
Combined with the semi-annual cash dividend of $1.02 per share paid on Nov. 17, 2014, this will bring the total dividend payments for the fiscal year to $2.04 per share, for total projected cash dividend payments of approximately $1.35 billion.
Share Repurchase Activity
During the second quarter of fiscal 2015, Accenture repurchased or redeemed 6.8 million shares for a total of $601 million, including approximately 5.0 million shares repurchased in the open market.
Accenture’s total remaining share repurchase authority at Feb. 28, 2015 was approximately $3.7 billion.
At Feb. 28, 2015, Accenture had approximately 663 million total shares outstanding, including 626 million Accenture plc Class A ordinary shares and 37 million Accenture SCA Class I common shares and Accenture Canada Holdings Inc. exchangeable shares.
Business Outlook
Third Quarter Fiscal 2015
Accenture expects net revenues for the third quarter of fiscal 2015 to be in the range of $7.35 billion to $7.60 billion. This range assumes a foreign-exchange impact of negative 11 percent compared with the third quarter of fiscal 2014.
Full Fiscal Year 2015
Accenture’s business outlook for the full 2015 fiscal year now assumes a foreign-exchange impact of negative 8 percent compared with fiscal 2014; the previous foreign-exchange assumption was negative 5 percent.
For fiscal 2015, the company has raised its outlook for net revenue growth in local currency to be in the range of 8 percent to 10 percent, compared with 5 percent to 8 percent previously.
In May 2015, the company will record a non-cash settlement charge of approximately $60 million, pre-tax, as a result of a current offer to former employees to receive a voluntary one-time, lump-sum cash payment from the company’s U.S. pension plan. The payment will settle the company’s pension obligations to those former employees who participate. This settlement charge will reduce the company’s fiscal 2015 GAAP EPS by approximately $0.05 and its full-year GAAP operating margin by approximately 20 basis points.
Accenture now expects diluted GAAP EPS to be in the range of $4.61 to $4.71, including the positive impact of its increased revenue outlook, which is offset by the negative impact of its revised foreign-exchange assumption, as well as the negative impact of the settlement charge. Excluding the settlement charge, adjusted EPS is expected to be in the range of $4.66 to $4.76. The company’s previously guided range for EPS was $4.66 to $4.80.
Accenture now expects GAAP operating margin for the full fiscal year to be in the range of 14.2 percent to 14.4 percent, compared with its previously guided range of 14.4 percent to 14.6 percent. Excluding the settlement charge, operating margin for the full fiscal year is expected to be in the range of 14.4 percent to 14.6 percent, an expansion of 10 to 30 basis points from fiscal 2014—consistent with the company’s previous expectation.
Reflecting its revised foreign-exchange assumption, the company now expects operating cash flow for fiscal 2015 to be in the range of $3.85 billion to $4.15 billion, compared with $3.95 billion to $4.25 billion previously; continues to expect property and equipment additions to be $450 million; and now expects free cash flow to be in the range of $3.4 billion to $3.7 billion, compared with $3.5 billion to $3.8 billion previously.
The company continues to expect to return at least $3.8 billion to its shareholders in fiscal 2015 through dividends and share repurchases.
The company continues to expect its annual effective tax rate to be in the range of 26.0 percent to 27.0 percent.
Accenture is now targeting new bookings for fiscal 2015 in the range of $33 billion to $35 billion, compared with $34 billion to $36 billion previously, reflecting its revised foreign-exchange assumption.
Conference Call and Webcast Details
Accenture will host a conference call at 8:00 a.m. EDT today to discuss its second-quarter financial results. To participate, please dial +1 (800) 230-1059 [+1 (612) 332-0107 outside the United States, Puerto Rico and Canada] approximately 15 minutes before the scheduled start of the call. The conference call will also be accessible live on the Investor Relations section of the Accenture Web site at www.accenture.com.
A replay of the conference call will be available online at www.accenture.com beginning at 10:30 a.m. EDT today, Thursday, Mar. 26, and continuing until Thursday, June 25, 2015. A podcast of the conference call will be available online at www.accenture.com beginning approximately 24 hours after the call and continuing until Thursday, June 25, 2015. The replay will also be available via telephone by dialing +1 (800) 475-6701 [+1 (320) 365-3844 outside the United States, Puerto Rico and Canada] and entering access code 353090 from 10:30 a.m. EDT Thursday, Mar. 26 through Thursday, June 25, 2015.
About Accenture
Accenture is a global management consulting, technology services and outsourcing company, with more than 323,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, 2014. Its home page is www.accenture.com.
Non-GAAP Financial Information
This news release includes certain non-GAAP financial information as defined by Securities and Exchange Commission Regulation G. Pursuant to the requirements of this regulation, reconciliations of this non-GAAP financial information to Accenture’s financial statements as prepared under generally accepted accounting principles (GAAP) are included in this press release. Financial results “in local currency” are calculated by restating current-period activity into U.S. dollars using the comparable prior-year period’s foreign-currency exchange rates. Accenture’s management believes providing investors with this information gives additional insights into Accenture’s results of operations. While Accenture’s management believes that the non-GAAP financial measures herein are useful in evaluating Accenture’s operations, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP.
Forward-Looking Statements
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: the company’s results of operations could be adversely affected by volatile, negative or uncertain economic conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; the company’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions, and a significant reduction in such demand could materially affect the company’s results of operations; if the company is unable to keep its supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; the markets in which the company competes are highly competitive, and the company might not be able to compete effectively; the company could have liability or the company’s reputation could be damaged if the company fails to protect client and/or company data or information systems as obligated by law or contract or if the company’s information systems are breached; the company’s results of operations and ability to grow could be materially negatively affected if the company cannot adapt and expand its services and solutions in response to ongoing changes in technology and offerings by new entrants; the company’s results of operations could materially suffer if the company is not able to obtain sufficient pricing to enable it to meet its profitability expectations; if the company does not accurately anticipate the cost, risk and complexity of performing its work or if the third parties upon whom it relies do not meet their commitments, then the company’s contracts could have delivery inefficiencies and be less profitable than expected or unprofitable; the company’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; the company’s profitability could suffer if its cost-management strategies are unsuccessful, and the company may not be able to improve its profitability through improvements to cost-management to the degree it has done in the past; the company’s business could be materially adversely affected if the company incurs legal liability; the company’s work with government clients exposes the company to additional risks inherent in the government contracting environment; the company might not be successful at identifying, acquiring or integrating businesses or entering into joint ventures; the company’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; changes in the company’s level of taxes, as well as audits, investigations and tax proceedings, or changes in the company’s treatment as an Irish company, could have a material adverse effect on the company’s results of operations and financial condition; as a result of the company’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; adverse changes to the company’s relationships with key alliance partners or in the business of its key alliance partners could adversely affect the company’s results of operations; the company’s services or solutions could infringe upon the intellectual property rights of others or the company might lose its ability to utilize the intellectual property of others; if the company is unable to protect its intellectual property rights from unauthorized use or infringement by third parties, its business could be adversely affected; the company’s ability to attract and retain business and employees may depend on its reputation in the marketplace; many of the company’s contracts include payments that link some of its fees to the attainment of performance or business targets and/or require the company to meet specific service levels, which could increase the variability of the company’s revenues and impact its margins; if the company is unable to collect its receivables or unbilled services, the company’s results of operations, financial condition and cash flows could be adversely affected; if the company is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; the company’s share price and results of operations could fluctuate and be difficult to predict; the company’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; any changes to the estimates and assumptions that the company makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; the company may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.
###
Contact:
Roxanne Taylor
Accenture
+1 (917) 452-5106
roxanne.taylor@accenture.com
ACCENTURE PLC
CONSOLIDATED INCOME STATEMENTS
(In thousands of U.S. dollars, except share and per share amounts)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended February 28, | | Six Months Ended February 28, |
| | 2015 | | % of Net Revenues | | 2014 | | % of Net Revenues | | 2015 | | % of Net Revenues | | 2014 | | % of Net Revenues |
REVENUES: | | | | | | | | | | | | | | | | |
Revenues before reimbursements (“Net revenues”) | | $ | 7,493,329 |
| | 100 | % | | $ | 7,130,667 |
| | 100 | % | | $ | 15,389,044 |
| | 100 | % | | $ | 14,489,416 |
| | 100 | % |
Reimbursements | | 438,261 |
| | | | 436,816 |
| | | | 885,803 |
| | | | 877,763 |
| | |
Revenues | | 7,931,590 |
| | | | 7,567,483 |
| | | | 16,274,847 |
| | | | 15,367,179 |
| | |
OPERATING EXPENSES: | | | | | | | | | | | | | | | | |
Cost of services: | | | | | | | | | | | | | | | | |
Cost of services before reimbursable expenses | | 5,252,690 |
| | 70.1 | % | | 4,900,525 |
| | 68.7 | % | | 10,609,115 |
| | 68.9 | % | | 9,809,927 |
| | 67.7 | % |
Reimbursable expenses | | 438,261 |
| | | | 436,816 |
| | | | 885,803 |
| | | | 877,763 |
| | |
Cost of services | | 5,690,951 |
| | | | 5,337,341 |
| | | | 11,494,918 |
| | | | 10,687,690 |
| | |
Sales and marketing | | 798,644 |
| | 10.7 | % | | 837,255 |
| | 11.7 | % | | 1,706,218 |
| | 11.1 | % | | 1,765,465 |
| | 12.2 | % |
General and administrative costs | | 420,962 |
| | 5.6 | % | | 441,605 |
| | 6.2 | % | | 864,969 |
| | 5.6 | % | | 889,658 |
| | 6.1 | % |
Reorganization benefits, net | | — |
| | — | % | | — |
| | — | % | | — |
| | — | % | | (18,015 | ) | | (0.1 | )% |
Total operating expenses | | 6,910,557 |
| | | | 6,616,201 |
| | | | 14,066,105 |
| | | | 13,324,798 |
| | |
OPERATING INCOME | | 1,021,033 |
| | 13.6 | % | | 951,282 |
| | 13.3 | % | | 2,208,742 |
| | 14.4 | % | | 2,042,381 |
| | 14.1 | % |
Interest income | | 9,340 |
| | | | 7,960 |
| | | | 19,439 |
| | | | 14,716 |
| | |
Interest expense | | (3,905 | ) | | | | (4,348 | ) | | | | (6,716 | ) | | | | (8,006 | ) | | |
Other expense, net | | (21,508 | ) | | | | (4,766 | ) | | | | (24,487 | ) | | | | (15,386 | ) | | |
INCOME BEFORE INCOME TAXES | | 1,004,960 |
| | 13.4 | % | | 950,128 |
| | 13.3 | % | | 2,196,978 |
| | 14.3 | % | | 2,033,705 |
| | 14.0 | % |
Provision for income taxes | | 261,768 |
| | | | 227,797 |
| | | | 561,544 |
| | | | 499,728 |
| | |
NET INCOME | | 743,192 |
| | 9.9 | % | | 722,331 |
| | 10.1 | % | | 1,635,434 |
| | 10.6 | % | | 1,533,977 |
| | 10.6 | % |
Net income attributable to noncontrolling interests in Accenture SCA
and Accenture Canada Holdings Inc. | | (41,053 | ) | | | | (42,849 | ) | | | | (91,689 | ) | | | | (91,947 | ) | | |
Net income attributable to noncontrolling interests – other (1) | | (11,413 | ) | | | | (8,182 | ) | | | | (21,489 | ) | | | | (18,884 | ) | | |
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC | | $ | 690,726 |
| | 9.2 | % | | $ | 671,300 |
| | 9.4 | % | | $ | 1,522,256 |
| | 9.9 | % | | $ | 1,423,146 |
| | 9.8 | % |
CALCULATION OF EARNINGS PER SHARE: | | | | | | | | | | | | | | | | |
Net income attributable to Accenture plc | | $ | 690,726 |
| | | | $ | 671,300 |
| | | | $ | 1,522,256 |
| | | | $ | 1,423,146 |
| | |
Net income attributable to noncontrolling interests in Accenture SCA
and Accenture Canada Holdings Inc. (2) | | 41,053 |
| | | | 42,849 |
| | | | 91,689 |
| | | | 91,947 |
| | |
Net income for diluted earnings per share calculation | | $ | 731,779 |
| | | | $ | 714,149 |
| | | | $ | 1,613,945 |
| | | | $ | 1,515,093 |
| | |
EARNINGS PER SHARE: | | | | | | | | | | | | | | | | |
-Basic | | $ | 1.10 |
| | | | $ | 1.06 |
| | | | $ | 2.42 |
| | | | $ | 2.24 |
| | |
-Diluted (3) | | $ | 1.08 |
| | | | $ | 1.03 |
| | | | $ | 2.37 |
| | | | $ | 2.18 |
| | |
WEIGHTED AVERAGE SHARES: | | | | | | | | | | | | | | | | |
-Basic | | 628,254,759 |
| | | | 635,929,351 |
| | | | 628,338,365 |
| | | | 636,314,554 |
| | |
-Diluted (3) | | 679,165,137 |
| | | | 693,846,206 |
| | | | 680,752,956 |
| | | | 696,091,177 |
| | |
Cash dividends per share | | $ | — |
| | | | $ | — |
| | | | $ | 1.02 |
| | | | $ | 0.93 |
| | |
_______________
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(1) | Comprised primarily of noncontrolling interest attributable to the noncontrolling shareholders of Avanade, Inc. |
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(2) | Diluted earnings per share assumes the redemption of all Accenture SCA Class I common shares owned by holders of noncontrolling interests and the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis. The income effect does not take into account “Net income attributable to noncontrolling interests — other,” since those shares are not redeemable or exchangeable for Accenture plc Class A ordinary shares. |
| |
(3) | Diluted weighted average Accenture plc Class A ordinary shares for the three and six months ended February 28, 2014 have been restated to reflect the impact of the issuance of additional restricted share units to holders of restricted share units in connection with the payments of cash dividends during the first quarter of fiscal 2015 and the third quarter of fiscal 2014. This did not result in a change to previously reported Diluted earnings per share. |
ACCENTURE PLC
SUMMARY OF REVENUES
(In thousands of U.S. dollars)
(Unaudited)
|
| | | | | | | | | | | | |
| | | | | | | | Percent
Increase
Local
Currency |
| | | | | | Percent
Increase
(Decrease)
U.S. dollars | |
| | Three Months Ended February 28, | | |
| | 2015 | | 2014 | | |
OPERATING GROUPS | | | | | | | | |
Communications, Media & Technology | | $ | 1,516,785 |
| | $ | 1,408,616 |
| | 8% | | 15% |
Financial Services | | 1,589,535 |
| | 1,563,655 |
| | 2 | | 9 |
Health & Public Service | | 1,319,917 |
| | 1,183,728 |
| | 12 | | 15 |
Products | | 1,850,953 |
| | 1,745,515 |
| | 6 | | 13 |
Resources | | 1,211,826 |
| | 1,224,897 |
| | (1) | | 6 |
Other | | 4,313 |
| | 4,256 |
| | n/m | | n/m |
TOTAL Net Revenues | | 7,493,329 |
| | 7,130,667 |
| | 5% | | 12% |
Reimbursements | | 438,261 |
| | 436,816 |
| | — | | |
TOTAL REVENUES | | $ | 7,931,590 |
| | $ | 7,567,483 |
| | 5% | | |
GEOGRAPHY | | | | | | | | |
North America | | $ | 3,411,899 |
| | $ | 3,030,524 |
| | 13% | | 13% |
Europe | | 2,659,643 |
| | 2,717,214 |
| | (2) | | 9 |
Growth Markets | | 1,421,787 |
| | 1,382,929 |
| | 3 | | 12 |
TOTAL Net Revenues | | $ | 7,493,329 |
| | $ | 7,130,667 |
| | 5% | | 12% |
TYPE OF WORK | | | | | | | | |
Consulting | | $ | 3,839,172 |
| | $ | 3,696,916 |
| | 4% | | 11% |
Outsourcing | | 3,654,157 |
| | 3,433,751 |
| | 6 | | 13 |
TOTAL Net Revenues | | $ | 7,493,329 |
| | $ | 7,130,667 |
| | 5% | | 12% |
|
| | | | | | | | | | | | |
| | | | | | | | Percent
Increase
Local
Currency |
| | | | | | Percent
Increase
(Decrease)
U.S. dollars | |
| | Six Months Ended February 28, | | |
| | 2015 | | 2014 | | |
OPERATING GROUPS | | | | | | | | |
Communications, Media & Technology | | $ | 3,097,822 |
| | $ | 2,819,599 |
| | 10% | | 15% |
Financial Services | | 3,305,762 |
| | 3,161,621 |
| | 5 | | 10 |
Health & Public Service | | 2,688,359 |
| | 2,413,802 |
| | 11 | | 14 |
Products | | 3,781,284 |
| | 3,546,577 |
| | 7 | | 11 |
Resources | | 2,507,307 |
| | 2,539,904 |
| | (1) | | 4 |
Other | | 8,510 |
| | 7,913 |
| | n/m | | n/m |
TOTAL Net Revenues | | 15,389,044 |
| | 14,489,416 |
| | 6% | | 11% |
Reimbursements | | 885,803 |
| | 877,763 |
| | 1 | | |
TOTAL REVENUES | | $ | 16,274,847 |
| | $ | 15,367,179 |
| | 6% | | |
GEOGRAPHY | | | | | | | | |
North America | | $ | 6,850,379 |
| | $ | 6,123,182 |
| | 12% | | 13% |
Europe | | 5,564,785 |
| | 5,478,778 |
| | 2 | | 9 |
Growth Markets | | 2,973,880 |
| | 2,887,456 |
| | 3 | | 10 |
TOTAL Net Revenues | | $ | 15,389,044 |
| | $ | 14,489,416 |
| | 6% | | 11% |
TYPE OF WORK | | | | | | | | |
Consulting | | $ | 7,932,065 |
| | $ | 7,634,583 |
| | 4% | | 9% |
Outsourcing | | 7,456,979 |
| | 6,854,833 |
| | 9 | | 13 |
TOTAL Net Revenues | | $ | 15,389,044 |
| | $ | 14,489,416 |
| | 6% | | 11% |
_________
n/m = not meaningful
ACCENTURE PLC
OPERATING INCOME BY OPERATING GROUP
(In thousands of U.S. dollars)
(Unaudited)
|
| | | | | | | | | | | | | | | |
| Three Months Ended February 28, | | |
| 2015 | | 2014 | | |
| Operating
Income | | Operating
Margin | | Operating
Income | | Operating
Margin | | Increase
(Decrease) |
Communications, Media & Technology | $ | 201,661 |
| | 13% | | $ | 181,815 |
| | 13% | | $ | 19,846 |
|
Financial Services | 228,161 |
| | 14 | | 209,138 |
| | 13 | | 19,023 |
|
Health & Public Service | 163,830 |
| | 12 | | 145,614 |
| | 12 | | 18,216 |
|
Products | 271,826 |
| | 15 | | 205,526 |
| | 12 | | 66,300 |
|
Resources | 155,555 |
| | 13 | | 209,189 |
| | 17 | | (53,634 | ) |
Total | $ | 1,021,033 |
| | 13.6% | | $ | 951,282 |
| | 13.3% | | $ | 69,751 |
|
|
| | | | | | | | | | | | | | | |
| Six Months Ended February 28, | | |
| 2015 | | 2014 | | |
| Operating
Income | | Operating
Margin | | Operating
Income | | Operating
Margin | | Increase
(Decrease) |
Communications, Media & Technology | $ | 390,418 |
| | 13% | | $ | 335,183 |
| | 12% | | $ | 55,235 |
|
Financial Services | 525,743 |
| | 16 | | 472,706 |
| | 15 | | 53,037 |
|
Health & Public Service | 365,633 |
| | 14 | | 324,919 |
| | 13 | | 40,714 |
|
Products | 561,558 |
| | 15 | | 452,913 |
| | 13 | | 108,645 |
|
Resources | 365,390 |
| | 15 | | 456,660 |
| | 18 | | (91,270 | ) |
Total | $ | 2,208,742 |
| | 14.4% | | $ | 2,042,381 |
| | 14.1% | | $ | 166,361 |
|
ACCENTURE PLC
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
|
| | | | | | | | |
| | February 28, 2015 | | August 31, 2014 |
| | (Unaudited) | | |
ASSETS | | | | |
CURRENT ASSETS: | | | | |
Cash and cash equivalents | | $ | 4,061,400 |
| | $ | 4,921,305 |
|
Short-term investments | | 2,619 |
| | 2,602 |
|
Receivables from clients, net | | 3,688,052 |
| | 3,859,567 |
|
Unbilled services, net | | 1,738,126 |
| | 1,803,767 |
|
Other current assets | | 1,517,611 |
| | 1,317,201 |
|
Total current assets | | 11,007,808 |
| | 11,904,442 |
|
NON-CURRENT ASSETS: | | | | |
Unbilled services, net | | 23,628 |
| | 28,039 |
|
Investments | | 50,130 |
| | 66,783 |
|
Property and equipment, net | | 725,917 |
| | 793,444 |
|
Other non-current assets | | 5,184,082 |
| | 5,137,744 |
|
Total non-current assets | | 5,983,757 |
| | 6,026,010 |
|
TOTAL ASSETS | | $ | 16,991,565 |
| | $ | 17,930,452 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | |
CURRENT LIABILITIES: | | | | |
Current portion of long-term debt and bank borrowings | | $ | 191 |
| | $ | 330 |
|
Accounts payable | | 984,539 |
| | 1,064,228 |
|
Deferred revenues | | 2,297,747 |
| | 2,348,034 |
|
Accrued payroll and related benefits | | 2,959,795 |
| | 3,380,748 |
|
Other accrued liabilities | | 1,251,714 |
| | 1,364,739 |
|
Total current liabilities | | 7,493,986 |
| | 8,158,079 |
|
NON-CURRENT LIABILITIES: | | | | |
Long-term debt | | 27,033 |
| | 26,403 |
|
Other non-current liabilities | | 2,920,903 |
| | 3,460,633 |
|
Total non-current liabilities | | 2,947,936 |
| | 3,487,036 |
|
TOTAL ACCENTURE PLC SHAREHOLDERS’ EQUITY | | 5,990,851 |
| | 5,732,035 |
|
NONCONTROLLING INTERESTS | | 558,792 |
| | 553,302 |
|
TOTAL SHAREHOLDERS’ EQUITY | | 6,549,643 |
| | 6,285,337 |
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | $ | 16,991,565 |
| | $ | 17,930,452 |
|
ACCENTURE PLC
CONSOLIDATED CASH FLOWS STATEMENTS
(In thousands of U.S. dollars)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended February 28, | | Six Months Ended February 28, |
| | 2015 | | 2014 | | 2015 | | 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | |
Net income | | $ | 743,192 |
| | $ | 722,331 |
| | $ | 1,635,434 |
| | $ | 1,533,977 |
|
Depreciation, amortization and asset impairments | | 152,236 |
| | 149,140 |
| | 318,755 |
| | 294,467 |
|
Reorganization benefits, net | | — |
| | — |
| | — |
| | (18,015 | ) |
Share-based compensation expense | | 207,200 |
| | 206,780 |
| | 336,115 |
| | 333,686 |
|
Change in assets and liabilities/other, net | | (801,341 | ) | | (785,871 | ) | | (1,116,117 | ) | | (1,670,502 | ) |
Net cash provided by operating activities | | 301,287 |
| | 292,380 |
| | 1,174,187 |
| | 473,613 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | |
Purchases of property and equipment | | (81,568 | ) | | (76,167 | ) | | (133,426 | ) | | (135,126 | ) |
Purchases of businesses and investments, net of cash acquired | | (80,821 | ) | | (472,202 | ) | | (119,462 | ) | | (609,589 | ) |
Other investing, net | | 655 |
| | 710 |
| | 1,941 |
| | 1,504 |
|
Net cash used in investing activities | | (161,734 | ) | | (547,659 | ) | | (250,947 | ) | | (743,211 | ) |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | |
Proceeds from issuance of ordinary shares | | 113,165 |
| | 112,587 |
| | 309,187 |
| | 292,820 |
|
Purchases of shares | | (600,631 | ) | | (739,238 | ) | | (1,270,798 | ) | | (1,460,752 | ) |
Cash dividends paid | | — |
| | — |
| | (678,736 | ) | | (630,234 | ) |
Other financing, net | | 23,064 |
| | 50,572 |
| | 49,068 |
| | 83,571 |
|
Net cash used in financing activities | | (464,402 | ) | | (576,079 | ) | | (1,591,279 | ) | | (1,714,595 | ) |
Effect of exchange rate changes on cash and cash equivalents | | (86,098 | ) | | (15,566 | ) | | (191,866 | ) | | 32,582 |
|
NET DECREASE IN CASH AND CASH EQUIVALENTS | | (410,947 | ) | | (846,924 | ) | | (859,905 | ) | | (1,951,611 | ) |
CASH AND CASH EQUIVALENTS, beginning of period | | 4,472,347 |
| | 4,527,198 |
| | 4,921,305 |
| | 5,631,885 |
|
CASH AND CASH EQUIVALENTS, end of period | | $ | 4,061,400 |
| | $ | 3,680,274 |
| | $ | 4,061,400 |
| | $ | 3,680,274 |
|
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