-- Revenues of $7.8 billion, up 0.4% in U.S.
dollars and 10% in local currency --
-- EPS of $1.24 include a $0.06 non-cash
pension settlement charge. Excluding this charge, EPS are $1.30, a
3% increase --
-- Operating income is $1.13 billion,
including a $64 million non-cash pension settlement charge.
Excluding the charge, operating income is $1.20 billion and
operating margin is 15.4%, an expansion of 20 basis points
--
-- New bookings are $8.5 billion, with
consulting bookings of $4.5 billion and outsourcing bookings
of $4.0 billion --
-- Accenture updates business outlook for
fiscal 2015; expects full-year revenue growth of 9-10% in local
currency, compared with 8-10% previously; raises outlook for
full-year GAAP EPS to range of $4.67 to $4.72 from $4.61 to $4.71
previously --
Accenture (NYSE:ACN) reported financial results for the third
quarter of fiscal 2015, ended May 31, 2015, with net revenues of
$7.8 billion, an increase of 0.4 percent in U.S. dollars
and 10 percent in local currency over the same period last
year.
Diluted earnings per share were $1.24, including a non-cash
pension settlement charge of $64 million, pre-tax, or $0.06
per share. Excluding this charge, diluted earnings per share were
$1.30, an increase of $0.04, or 3 percent, over the same
period last year. The charge related to lump-sum payments made from
the company’s U.S. pension plan to former employees who elected to
receive such payments. The payments settled the company’s pension
obligations to those who participated.
Operating income for the quarter was $1.13 billion, including
the $64 million pension settlement charge. Excluding the charge,
operating income increased 2 percent, to $1.20 billion, and
operating margin expanded 20 basis points, to
15.4 percent.
New bookings for the quarter were $8.5 billion, with consulting
bookings of $4.5 billion and outsourcing bookings of
$4.0 billion.
Pierre Nanterme, Accenture’s chairman and CEO, said, “We are
very pleased with our financial results for the third quarter. We
delivered 10 percent revenue growth in local currency, which
was broad-based across the business, and we gained significant
market share. New bookings of $8.5 billion bring us to $25.5
billion for the first three quarters of the year, demonstrating the
continued strong demand for our services. We generated solid free
cash flow and returned $1.2 billion in cash to our
shareholders, while investing significantly in our business.
“We are clearly benefiting from our recent investments across
the different dimensions of our business in digital services, where
we grew more than 30 percent in local currency in the quarter.
Looking ahead, we remain focused on further differentiating our
capabilities and capturing new growth opportunities. We have
excellent momentum in our business, and are well-positioned to
continue driving profitable growth and delivering value to our
clients and our shareholders.”
Financial Review
Revenues before reimbursements (“net revenues”) for the third
quarter of fiscal 2015 were $7.77 billion, compared with
$7.74 billion for the third quarter of fiscal 2014, an
increase of 0.4 percent in U.S. dollars and 10 percent in
local currency. Net revenues for the quarter reflect a
foreign-exchange impact of negative 10 percent, compared with the
negative 11 percent we had previously assumed. Adjusting for
the actual foreign-exchange impact of negative 10 percent in
the quarter, the company’s guided range for quarterly net revenues
was $7.43 billion to $7.68 billion. Accenture’s third
quarter fiscal 2015 net revenues were approximately
$90 million above this adjusted range.
- Consulting net revenues for the quarter
were $4.11 billion, an increase of 1 percent in U.S. dollars and 11
percent in local currency compared with the third quarter of fiscal
2014.
- Outsourcing net revenues were
$3.66 billion, flat in U.S. dollars and an increase of
10 percent in local currency compared with the third quarter
of fiscal 2014.
Diluted EPS for the quarter were $1.24, compared with $1.26 for
the third quarter last year. The pension settlement charge had a
negative $0.06 impact on EPS in the third quarter of fiscal 2015.
Excluding this charge, EPS for the quarter were $1.30, an increase
of $0.04 from the third quarter last year. The $0.04 increase in
EPS on an adjusted basis reflects:
- $0.02 from higher revenue and
operating results; and
- $0.03 from a lower share count;
partially offset by
- $0.01 from a higher effective tax rate
excluding the impact of the pension settlement charge.
Gross margin (gross profit as a percentage of net revenues) for
the quarter was 32.5 percent, compared with 32.8 percent for
the third quarter last year. Selling, general and administrative
(SG&A) expenses for the quarter were $1.33 billion, or
17.1 percent of net revenues, compared with $1.36 billion, or
17.5 percent of net revenues, for the third quarter last
year.
Operating income for the quarter was $1.13 billion, or
14.6 percent of net revenues, compared with $1.18 billion, or
15.2 percent of net revenues, for the third quarter of fiscal
2014. Excluding the $64 million pension settlement charge,
operating income for the third quarter of fiscal 2015 was $1.20
billion, or 15.4 percent of net revenues, a 20-basis-point
expansion from the third quarter of fiscal 2014.
The company’s effective tax rate for the quarter was
24.9 percent, compared with 25.0 percent for the third
quarter last year. Excluding the impact of the pension settlement
charge, the effective tax rate for the third quarter of fiscal 2015
was 25.7 percent.
Net income for the quarter was $850 million, compared with
$882 million for the third quarter last year. Excluding the
after-tax impact of the pension settlement charge, net income for
the third quarter of fiscal 2015 was $889 million.
Operating cash flow for the quarter was $1.41 billion, and
property and equipment additions were $114 million. Free cash
flow, defined as operating cash flow net of property and equipment
additions, was $1.30 billion. For the same period last year,
operating cash flow was $1.36 billion; property and equipment
additions were $85 million; and free cash flow was
$1.28 billion.
Days services outstanding, or DSOs, were 37 days at May 31,
2015, compared with 36 days at Aug. 31, 2014 and 35 days at May 31,
2014.
Accenture’s total cash balance at May 31, 2015 was
$4.0 billion, compared with $4.9 billion at Aug. 31,
2014.
Utilization for the quarter was 90 percent, compared with
91 percent for the second quarter of fiscal 2015.
Attrition for the third quarter of fiscal 2015 was
15 percent, compared with 14 percent for the second quarter of
fiscal 2015 and 14 percent for the third quarter of fiscal
2014.
New Bookings
New bookings for the third quarter were $8.5 billion and
reflect a negative 10 percent foreign-currency impact compared
with new bookings in the third quarter last year.
- Consulting new bookings were
$4.5 billion, or 53 percent of total new bookings.
- Outsourcing new bookings were
$4.0 billion, or 47 percent of total new bookings.
Net Revenues by Operating Group
Net revenues by operating group were as follows:
- Communications, Media & Technology:
$1.61 billion, compared with $1.52 billion for the third
quarter of fiscal 2014, an increase of 6 percent in U.S.
dollars and 17 percent in local currency.
- Financial Services: $1.64 billion,
compared with $1.68 billion for the third quarter of fiscal
2014, a decrease of 2 percent in U.S. dollars and an increase
of 10 percent in local currency.
- Health & Public Service: $1.38
billion, compared with $1.31 billion for the third quarter of
fiscal 2014, an increase of 5 percent in U.S. dollars and
10 percent in local currency.
- Products: $1.88 billion, compared
with $1.91 billion for the third quarter of fiscal 2014, a
decrease of 2 percent in U.S. dollars and an increase of 8
percent in local currency.
- Resources: $1.25 billion, compared
with $1.30 billion for the third quarter of fiscal 2014, a
decrease of 4 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 third quarter of
fiscal 2015 were as follows:
- North America: $3.64 billion,
compared with $3.29 billion for the third quarter of fiscal
2014, an increase of 11 percent in U.S. dollars and 12 percent
in local currency.
- Europe: $2.65 billion, compared with
$2.95 billion for the third quarter of fiscal 2014, a decrease
of 10 percent in U.S. dollars and an increase of 7 percent in
local currency.
- Growth Markets: $1.47 billion,
compared with $1.50 billion for the third quarter of fiscal 2014, a
decrease of 2 percent in U.S. dollars and an increase of
13 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
On May 15, 2015, a semi-annual cash dividend of $1.02 per share
was paid on Accenture plc Class A ordinary shares to shareholders
of record at the close of business on April 10, 2015, and on
Accenture SCA Class I common shares to shareholders of record at
the close of business on April 7, 2015.
Combined with the semi-annual cash dividend of $1.02 per share
paid on Nov. 17, 2014, this brings the total dividend payments for
the fiscal year to $2.04 per share, for total cash dividend
payments of approximately $1.35 billion.
Share Repurchase Activity
During the third quarter of fiscal 2015, Accenture repurchased
or redeemed 5.6 million shares for a total of $518 million,
including approximately 4.8 million shares repurchased in the open
market.
Accenture’s total remaining share repurchase authority at May
31, 2015 was approximately $3.2 billion.
At May 31, 2015, Accenture had approximately 660 million
total shares outstanding, including 624 million Accenture plc
Class A ordinary shares and 36 million Accenture SCA Class I
common shares and Accenture Canada Holdings Inc. exchangeable
shares.
Business Outlook
Fourth Quarter Fiscal 2015
Accenture expects net revenues for the fourth quarter of fiscal
2015 to be in the range of $7.45 billion to
$7.70 billion. This range assumes a foreign-exchange impact of
negative 10 percent compared with the fourth 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 7.5 percent
compared with fiscal 2014; the previous foreign-exchange assumption
was negative 8 percent.
For fiscal 2015, the company now expects net revenue growth in
local currency to be in the range of 9 percent to 10 percent,
compared with 8 percent to 10 percent previously.
Accenture now expects diluted GAAP EPS to be in the range of
$4.67 to $4.72, including the pension settlement charge, compared
with $4.61 to $4.71 previously. Excluding the pension settlement
charge of $0.06 per share in the third quarter, the company now
expects adjusted EPS to be in the range of $4.73 to $4.78, compared
with $4.66 to $4.76 previously.
Accenture continues to expect GAAP operating margin for the full
fiscal year to be in the range of 14.2 percent to 14.4 percent.
Excluding the pension settlement charge, the company continues to
expect operating margin for the full fiscal year to be in the range
of 14.4 percent to 14.6 percent, an expansion of 10 to 30
basis points from fiscal 2014.
The company now expects operating cash flow for fiscal 2015 to
be in the range of $3.8 billion to $4.1 billion, compared
with $3.85 billion to $4.15 billion previously; now expects
property and equipment additions to be $400 million, compared
with $450 million previously; and continues to expect free cash
flow to be in the range of $3.4 billion to
$3.7 billion.
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 continues to target new bookings for fiscal 2015 in
the range of $33 billion to $35 billion.
Conference Call and Webcast
Details
Accenture will host a conference call at 8:00 a.m. EDT today to
discuss its third-quarter financial results. To participate, please
dial +1 (800) 230-1074 [+1 (612) 234-9960 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,
June 25, and continuing until Thursday, Sept. 24, 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, Sept. 24, 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 360639 from 10:30 a.m. EDT Thursday, June
25 through Thursday, Sept. 24, 2015.
About Accenture
Accenture is a global management consulting, technology services
and outsourcing company, with more than 336,000 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.
ACCENTURE PLC
CONSOLIDATED INCOME STATEMENTS (In
thousands of U.S. dollars, except share and per share amounts)
(Unaudited) Three Months Ended May 31, Nine
Months Ended May 31, 2015 % of Net
Revenues 2014 % of Net Revenues
2015 % of Net Revenues
2014 % of Net Revenues REVENUES:
Revenues before reimbursements (“Net
revenues”)
$ 7,770,382 100 % $ 7,735,638 100 % $ 23,159,426 100 % $ 22,225,054
100 % Reimbursements 504,684 504,542
1,390,487 1,382,305
Revenues
8,275,066 8,240,180 24,549,913 23,607,359
OPERATING
EXPENSES: Cost of services:
Cost of services before reimbursable
expenses
5,245,477 67.5 % 5,199,281 67.2 % 15,854,592 68.5 % 15,009,208 67.5
% Reimbursable expenses 504,684 504,542
1,390,487 1,382,305 Cost of services
5,750,161 5,703,823 17,245,079 16,391,513 Sales and marketing
874,713 11.3 % 899,250 11.6 % 2,580,931 11.1 % 2,664,715 12.0 %
General and administrative costs 452,291 5.8 % 458,341 5.9 %
1,317,260 5.7 % 1,347,999 6.1 % Pension settlement charge 64,382
0.8 % - - 64,382 0.3 % - - Reorganization benefits, net -
- - - - - (18,015 ) (0.1
%) Total operating expenses 7,141,547
7,061,414 21,207,652 20,386,212
OPERATING INCOME 1,133,519 14.6 % 1,178,766 15.2 % 3,342,261
14.4 % 3,221,147 14.5 % Interest income 6,441 7,513 25,880 22,229
Interest expense (4,030 ) (4,290 ) (10,746 ) (12,296 ) Other
expense, net (3,839 ) (6,051 ) (28,326 )
(21,437 )
INCOME BEFORE INCOME TAXES 1,132,091 14.6 %
1,175,938 15.2 % 3,329,069 14.4 % 3,209,643 14.4 % Provision for
income taxes 281,861 294,125
843,405 793,853
NET INCOME 850,230 10.9
% 881,813 11.4 % 2,485,664 10.7 % 2,415,790 10.9 %
Net income attributable to noncontrolling
interests in Accenture SCA and Accenture Canada Holdings Inc.
(46,283 ) (51,523 ) (137,972 ) (143,470 )
Net income attributable to noncontrolling
interests – other (1)
(10,250 ) (12,954 ) (31,739 ) (31,838 )
NET INCOME ATTRIBUTABLE TO ACCENTURE
PLC
$ 793,697 10.2 % $ 817,336 10.6 % $ 2,315,953
10.0 % $ 2,240,482 10.1 %
CALCULATION OF EARNINGS PER
SHARE: Net income attributable to Accenture plc $ 793,697 $
817,336 $ 2,315,953 $ 2,240,482 Net income attributable to
noncontrolling interests in Accenture SCA and Accenture Canada
Holdings Inc. (2) 46,283 51,523
137,972 143,470 Net income for diluted
earnings per share calculation $ 839,980 $ 868,859 $
2,453,925 $ 2,383,952
EARNINGS PER SHARE:
-Basic $ 1.27 $ 1.29 $ 3.69 $ 3.53 -Diluted $ 1.24 $ 1.26 $ 3.61 $
3.44
WEIGHTED AVERAGE SHARES: -Basic 625,969,418 633,128,417
627,523,298 635,231,759 -Diluted 677,825,768 691,038,145
679,719,183 693,943,009 Cash dividends per share $ 1.02 $ 0.93 $
2.04 $ 1.86
(1)
Comprised primarily of noncontrolling
interest attributable to the noncontrolling shareholders of
Avanade, Inc.
(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.
ACCENTURE PLC
SUMMARY OF REVENUES (In thousands of U.S.
dollars) (Unaudited)
Percent
Percent
Increase
Increase
Three Months Ended May 31,
(Decrease)
Local
2015 2014
U.S. dollars
Currency
OPERATING GROUPS Communications, Media & Technology $
1,613,478 $ 1,524,898 6 % 17 % Financial Services 1,638,313
1,677,066 (2 ) 10 Health & Public Service 1,383,639 1,313,840 5
10 Products 1,883,200 1,914,539 (2 ) 8 Resources 1,247,851
1,301,774 (4 ) 6 Other 3,901 3,521 n/m n/m
TOTAL
Net Revenues 7,770,382 7,735,638 — % 10 % Reimbursements
504,684 504,542 — TOTAL REVENUES $ 8,275,066 $ 8,240,180 — %
GEOGRAPHY North America $ 3,644,002 $ 3,286,312 11 % 12 %
Europe 2,653,071 2,953,023 (10 ) 7 Growth Markets 1,473,309
1,496,303 (2 ) 13
TOTAL Net Revenues $ 7,770,382 $
7,735,638 — % 10 %
TYPE OF WORK Consulting $ 4,111,914 $
4,086,455 1 % 11 % Outsourcing 3,658,468 3,649,183 —
10
TOTAL Net Revenues $ 7,770,382 $ 7,735,638 — % 10 %
Percent
Percent
Increase
Increase
Nine Months Ended May 31,
(Decrease)
Local
2015 2014
U.S. dollars
Currency
OPERATING GROUPS Communications, Media & Technology $
4,711,300 $ 4,344,497 8 % 16 % Financial Services 4,944,075
4,838,687 2 10 Health & Public Service 4,071,998 3,727,642 9 12
Products 5,664,484 5,461,116 4 10 Resources 3,755,158 3,841,678 (2
) 4 Other 12,411 11,434 n/m n/m
TOTAL Net
Revenues 23,159,426 22,225,054 4 % 11 % Reimbursements
1,390,487 1,382,305 1 TOTAL REVENUES $ 24,549,913 $
23,607,359 4 %
GEOGRAPHY North America $ 10,494,381 $
9,409,494 12 % 12 % Europe 8,217,856 8,431,801 (3 ) 9 Growth
Markets 4,447,189 4,383,759 1 11
TOTAL Net
Revenues $ 23,159,426 $ 22,225,054 4 % 11 %
TYPE OF WORK
Consulting $ 12,043,979 $ 11,721,038 3 % 9 % Outsourcing
11,115,447 10,504,016 6 12
TOTAL Net Revenues $
23,159,426 $ 22,225,054 4 % 11 %
__________________ n/m = not meaningful
ACCENTURE PLC For the Three Months
Ended May 31, 2015 and 2014 (In thousands of U.S.
dollars) (Unaudited)
OPERATING INCOME BY OPERATING GROUP Operating
Income as Reported (GAAP) Three Months Ended May 31,
2015 2014 Operating
Income
Operating
Margin
Operating
Income
Operating
Margin
Communications, Media & Technology $ 237,902 15 % $ 222,957 15
% Financial Services 265,863 16 252,928 15 Health & Public
Service 202,644 15 213,099 16 Products 255,162 14 253,357 13
Resources 171,948 14 236,425 18
Total $
1,133,519 14.6 % $ 1,178,766 15.2 %
Three Months
Ended May 31, 2015 2014
Operating Income and Operating Margin
Excluding Pension Settlement Charge (Non-GAAP)
Operating Income and Operating Margin
as Reported (GAAP)
OperatingIncome(GAAP)
PensionSettlementCharge
(1)
Operating Income
OperatingMargin
OperatingIncome
OperatingMargin
Increase(Decrease)
Communications, Media & Technology $ 237,902 $ 12,547 $ 250,449
16 % $ 222,957 15 % $ 27,492 Financial Services 265,863 13,460
279,323 17 252,928 15 26,395 Health & Public Service 202,644
11,664 214,308 15 213,099 16 1,209 Products 255,162 15,823 270,985
14 253,357 13 17,628 Resources 171,948 10,888
182,836 15 236,425 18 (53,589 )
Total $
1,133,519 $ 64,382 $ 1,197,901 15.4 % $ 1,178,766 15.2 % $ 19,135
RECONCILIATION OF NET INCOME AND
DILUTED EARNINGS PER SHARE, AS REPORTED (GAAP), TO NET INCOME AND
DILUTED EARNINGS PER SHARE, AS ADJUSTED (NON-GAAP)
Three Months Ended May
31, 2015 2014
As Reported (GAAP)
PensionSettlement Charge
(1)
Adjusted (Non-GAAP)
As Reported (GAAP)
Income before incomes taxes $ 1,132,091 $ 64,382 $ 1,196,473 $
1,175,938 Provision for income taxes 281,861
25,238 307,099 294,125 Net income $
850,230 $ 39,144 $ 889,374 $ 881,813
Effective tax rate 24.9 % 25.7 % 25.0 % Diluted earnings per share
$ 1.24 $ 0.06 $ 1.30 $ 1.26
(1) Represents non-cash pension settlement charge related to
lump sum cash payments from the company's U.S. pension plan to
former employees who elected to receive such payments. The payments
settled the company's pension obligations to those who
participated.
ACCENTURE PLC For the
Nine Months Ended May 31, 2015 and 2014 (In thousands of
U.S. dollars) (Unaudited)
OPERATING INCOME BY OPERATING GROUP
Operating Income as Reported (GAAP) Nine Months Ended May
31, 2015 2014
Operating
Income
Operating
Margin
Operating
Income
Operating
Margin
Communications, Media & Technology $ 628,320 13 % $ 558,140 13
% Financial Services 791,606 16 725,634 15 Health & Public
Service 568,277 14 538,018 14 Products 816,720 14 706,270 13
Resources 537,338 14 693,085 18
Total $
3,342,261 14.4 % $ 3,221,147 14.5 %
Nine Months
Ended May 31, 2015 2014
Operating Income and Operating Margin
Excluding Pension Settlement Charge (Non-GAAP)
Operating Income and Operating Margin
as Reported (GAAP)
OperatingIncome(GAAP)
Pension Settlement Charge
(1)
Operating Income
OperatingMargin
OperatingIncome
OperatingMargin
Increase(Decrease)
Communications, Media & Technology $ 628,320 $ 12,547 $ 640,867
14 % $ 558,140 13 % $ 82,727 Financial Services 791,606 13,460
805,066 16 725,634 15 79,432 Health & Public Service 568,277
11,664 579,941 14 538,018 14 41,923 Products 816,720 15,823 832,543
15 706,270 13 126,273 Resources 537,338 10,888
548,226 15 693,085 18 (144,859 )
Total $
3,342,261 $ 64,382 $ 3,406,643 14.7 % $ 3,221,147 14.5 % $ 185,496
RECONCILIATION OF NET INCOME AND
DILUTED EARNINGS PER SHARE, AS REPORTED (GAAP), TO NET INCOME AND
DILUTED EARNINGS PER SHARE, AS ADJUSTED (NON-GAAP)
Nine Months Ended May 31, 2015
2014
As Reported (GAAP)
PensionSettlement Charge
(1)
Adjusted(Non-GAAP)
As Reported (GAAP)
Income before income taxes $ 3,329,069 $ 64,382 $ 3,393,451 $
3,209,643 Provision for income taxes 843,405
25,238 868,643 793,853 Net Income $
2,485,664 $ 39,144 $ 2,524,808 $ 2,415,790
Effective tax rate 25.3 % 25.6 % 24.7 % Diluted earnings per
share $ 3.61 $ 0.06 $ 3.67 $ 3.44
(1)
Represents non-cash pension settlement
charge related to lump sum cash payments from the company's U.S.
pension plan to former employees who elected to receive such
payments. The payments settled the company's pension obligations to
those who participated.
ACCENTURE PLC
CONSOLIDATED BALANCE SHEETS (In thousands of U.S.
dollars) May 31, 2015 August 31, 2014
(Unaudited) ASSETS CURRENT ASSETS: Cash and
cash equivalents $ 4,026,189 $ 4,921,305 Short-term investments
2,383 2,602 Receivables from clients, net 3,717,048 3,859,567
Unbilled services, net 1,831,087 1,803,767 Other current assets
1,492,814 1,317,201 Total current assets
11,069,521 11,904,442
NON-CURRENT ASSETS: Unbilled
services, net 23,523 28,039 Investments 43,763 66,783 Property and
equipment, net 752,362 793,444 Other non-current assets
5,419,558 5,137,744 Total non-current assets
6,239,206 6,026,010
TOTAL ASSETS $ 17,308,727 $
17,930,452
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT
LIABILITIES: Current portion of long-term debt and bank
borrowings $ 1 $ 330 Accounts payable 1,040,645 1,064,228 Deferred
revenues 2,142,085 2,348,034 Accrued payroll and related benefits
3,305,945 3,380,748 Other accrued liabilities 1,399,766
1,364,739 Total current liabilities 7,888,442
8,158,079
NON-CURRENT LIABILITIES: Long-term debt 27,217
26,403 Other non-current liabilities 2,926,837
3,460,633 Total non-current liabilities 2,954,054
3,487,036
TOTAL ACCENTURE PLC SHAREHOLDERS’ EQUITY 5,911,214
5,732,035
NONCONTROLLING INTERESTS 555,017
553,302
TOTAL SHAREHOLDERS’ EQUITY 6,466,231
6,285,337
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $
17,308,727 $ 17,930,452
ACCENTURE PLC
CONSOLIDATED CASH FLOWS STATEMENTS
(In thousands of U.S. dollars) (Unaudited)
Three Months Ended May 31, Nine Months Ended May 31,
2015 2014
2015 2014 CASH FLOWS FROM
OPERATING ACTIVITIES: Net income $ 850,230 $ 881,813 $
2,485,664 $ 2,415,790 Depreciation, amortization and asset
impairments 153,405 162,197 472,160 456,664 Reorganization
benefits, net - - - (18,015 ) Share-based compensation expense
195,576 186,303 531,691 519,989 Change in assets and
liabilities/other, net 214,153 132,947
(901,964 ) (1,537,555 ) Net cash provided by
operating activities 1,413,364 1,363,260
2,587,551 1,836,873
CASH
FLOWS FROM INVESTING ACTIVITIES: Purchases of property and
equipment (113,554 ) (85,287 ) (246,980 ) (220,413 ) Purchases of
businesses and investments, net of cash acquired (322,740 ) (65,631
) (442,202 ) (675,220 ) Other investing, net 11,346
2,591 13,287 4,095 Net
cash used in investing activities (424,948 ) (148,327
) (675,895 ) (891,538 )
CASH FLOWS FROM FINANCING
ACTIVITIES: Proceeds from issuance of ordinary shares 187,152
194,948 496,339 487,768 Purchases of shares (518,176 ) (441,115 )
(1,788,974 ) (1,901,867 ) Cash dividends paid (674,735 ) (624,682 )
(1,353,471 ) (1,254,916 ) Other financing, net 3,101
4,869 52,169 88,440 Net
cash used in financing activities (1,002,658 ) (865,980 )
(2,593,937 ) (2,580,575 ) Effect of exchange rate changes on cash
and cash equivalents (20,969 ) 19,632
(212,835 ) 52,214
NET (DECREASE) INCREASE IN CASH
AND CASH EQUIVALENTS (35,211 ) 368,585 (895,116 ) (1,583,026 )
CASH AND CASH EQUIVALENTS, beginning of period
4,061,400 3,680,274 4,921,305
5,631,885
CASH AND CASH EQUIVALENTS, end of
period $ 4,026,189 $ 4,048,859 $ 4,026,189 $
4,048,859
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150625005190/en/
AccentureRoxanne Taylor,
+1-917-452-5106roxanne.taylor@accenture.com
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