-- Fourth-quarter revenues increase 8% in U.S.
dollars and 9% in local currency, to $8.5 billion; quarterly
GAAP EPS of $1.68 include $0.37 from gains on the sale of
businesses; excluding these gains, EPS are $1.31, a 14% increase;
free cash flow is $1.9 billion --
-- For full fiscal year, revenues increase 6%
in U.S. dollars and 10.5% in local currency, to $32.9 billion;
GAAP EPS of $6.45 include $1.11 from gains on the sale of
businesses; excluding these gains, EPS are $5.34, an 11% increase
from adjusted EPS of $4.82 in fiscal 2015; free cash flow is $4.1
billion --
-- New bookings are $9.0 billion for
fourth quarter and $35.4 billion for full year --
-- Company increases semi-annual cash dividend
10%, to $1.21 per share --
-- For fiscal year 2017, Accenture expects net
revenue growth of 5% to 8% in local currency and GAAP EPS of $5.75
to $5.98 --
Accenture (NYSE:ACN) reported strong financial results for the
fourth quarter and full fiscal year ended Aug. 31, 2016.
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For the fourth quarter, net
revenues were $8.5 billion, an increase of 8 percent in
U.S. dollars and 9 percent in local currency compared with the
fourth quarter of fiscal 2015. GAAP diluted earnings per share
were $1.68, including $0.37 from gains on the sale of businesses.
Excluding these gains, diluted EPS were $1.31, a 14 percent
increase from $1.15 for the same period last year. Operating margin
was 14.1 percent, an expansion of 20 basis points. Operating cash
flow was $2.1 billion and free cash flow was
$1.9 billion. New bookings were $9.0 billion.
For the full fiscal year, net
revenues were $32.9 billion, an increase of 6 percent in
U.S. dollars and 10.5 percent in local currency compared with
fiscal 2015. GAAP diluted earnings per share were $6.45, compared
with $4.76 in fiscal 2015. EPS for fiscal 2016 included gains on
the sale of businesses totaling $1.11 per share; EPS for
fiscal 2015 included a pension settlement charge of $0.06 per
share. Excluding these items, diluted EPS of $5.34 for fiscal 2016
increased 11 percent from $4.82 in fiscal 2015. Operating margin
for fiscal 2016 was 14.6 percent. Operating cash flow was $4.6
billion and free cash flow was $4.1 billion. New bookings were
$35.4 billion.
In addition, Accenture’s Board of Directors has declared a
semi-annual cash dividend of $1.21 per share, an increase of
$0.11 per share, or 10 percent, over its previous
semi-annual dividend, declared in March.
Pierre Nanterme, Accenture’s chairman and CEO, said, “We are
very pleased with our excellent financial results for both the
fourth quarter and the full fiscal year 2016. For the year, we
delivered double-digit revenue growth in local currency and gained
significant market share, generated strong new bookings, expanded
operating margin, and delivered outstanding earnings per share. We
also generated excellent free cash flow and returned more than
$4 billion in cash to our shareholders.
“Our durable and balanced performance demonstrates that our
growth strategy continues to resonate with the needs of our
clients, and that we are clearly executing very well. Looking
ahead, we will continue to invest in high-growth areas across
Accenture—with a particular focus on digital, cloud and security
services, which accounted for approximately 40 percent of our
revenues in fiscal 2016. With the differentiated capabilities we
have built and the disciplined management of our business, we are
well-positioned to continue driving sustainable, profitable growth
and delivering value for our clients and shareholders.”
Financial Review
Fourth Quarter Fiscal 2016
Revenues before reimbursements (“net revenues”) for the fourth
quarter of fiscal 2016 were $8.49 billion, compared with
$7.89 billion for the fourth quarter of fiscal 2015, an
increase of 8 percent in U.S. dollars and 9 percent in local
currency. Net revenues for the quarter reflect a foreign-exchange
impact of negative 1.5 percent, compared with the negative 1
percent we had previously assumed. Adjusting for the actual
foreign-exchange impact of negative 1.5 percent in the
quarter, the company’s guided range for quarterly net revenues was
approximately $8.20 billion to $8.45 billion. Accenture’s
fourth quarter fiscal 2016 net revenues were approximately $40
million above this adjusted range.
- Consulting net revenues were
$4.61 billion, an increase of 11 percent in U.S. dollars
and 13 percent in local currency compared with the fourth
quarter of fiscal 2015.
- Outsourcing net revenues were
$3.88 billion, an increase of 4 percent in U.S. dollars
and 6 percent in local currency compared with the fourth quarter of
fiscal 2015.
GAAP diluted EPS for the fourth quarter were $1.68, compared
with $1.15 for the fourth quarter last year. Excluding gains on the
sale of businesses of $295 million, pre-tax, or $0.37 per share,
EPS for the quarter were $1.31, an increase of $0.16, or 14
percent, from the fourth quarter last year. The $0.16 increase in
EPS on an adjusted basis reflects:
- a $0.11 increase from higher revenue
and operating results;
- a $0.05 increase from a lower effective
tax rate; and
- a $0.02 increase from a lower share
count;
partially offset by
- a $0.02 decrease from higher
non-operating expense.
Gross margin (gross profit as a percentage of net revenues) for
the fourth quarter was 31.3 percent, compared with
31.7 percent for the fourth quarter of fiscal 2015. Selling,
general and administrative (SG&A) expenses for the fourth
quarter were $1.46 billion, or 17.2 percent of net
revenues, compared with $1.41 billion, or 17.9 percent of
net revenues, for the fourth quarter of fiscal 2015.
Operating income for the fourth quarter of fiscal 2016 was
$1.20 billion, or 14.1 percent of net revenues, compared
with $1.09 billion, or 13.9 percent of net revenues, for the
fourth quarter of fiscal 2015. Operating margin for the fourth
quarter of fiscal 2016 expanded 20 basis points.
The company’s effective tax rate for the fourth quarter was
22.5 percent, compared with 27.1 percent for the fourth
quarter of fiscal 2015. Excluding the impact of the gains on the
sale of businesses, the effective tax rate for the fourth quarter
of fiscal 2016 was 24.3 percent.
Net income for the quarter was $1.13 billion, compared with
$788 million for the fourth quarter last year. Excluding the
$249 million after-tax impact of the gains on the sale of
businesses, net income for the fourth quarter of fiscal 2016 was
$881 million, a 12 percent increase from the fourth quarter last
year.
Operating cash flow for the fourth quarter was
$2.06 billion, and property and equipment additions were
$160 million. Free cash flow, defined as operating cash flow
net of property and equipment additions, was $1.90 billion.
For the same period of fiscal 2015, operating cash flow was
$1.50 billion, property and equipment additions were
$148 million, and free cash flow was $1.36 billion.
Days services outstanding, or DSOs, were 39 days at Aug. 31,
2016, compared with 37 days at Aug. 31, 2015.
Accenture’s total cash balance at Aug. 31, 2016 was
$4.9 billion, compared with $4.4 billion at Aug. 31,
2015.
Utilization for the fourth quarter of fiscal 2016 was
92 percent, compared with 91 percent for the third quarter of
fiscal 2016 and 90 percent for the fourth quarter of fiscal
2015.
Attrition for the fourth quarter of fiscal 2016 was 16 percent,
compared with 15 percent for the third quarter of fiscal 2016
and 14 percent for the fourth quarter of fiscal 2015.
New Bookings
New bookings for the fourth quarter were $9.0 billion and
reflect a negative 2 percent foreign-exchange impact compared with
new bookings in the fourth quarter of fiscal 2015.
- Consulting new bookings were
$4.8 billion, or 53 percent of total new bookings.
- Outsourcing new bookings were
$4.2 billion, or 47 percent of total new bookings.
Net Revenues by Operating Group
Net revenues by operating group for the fourth quarter were as
follows:
- Communications, Media & Technology:
$1.70 billion, compared with $1.64 billion for the fourth
quarter of fiscal 2015, an increase of 4 percent in U.S. dollars
and 5 percent in local currency.
- Financial Services: $1.80 billion,
compared with $1.69 billion for the fourth quarter of fiscal
2015, an increase of 6 percent in U.S. dollars and 9 percent
in local currency.
- Health & Public Service:
$1.54 billion, compared with $1.39 billion for the fourth
quarter of fiscal 2015, an increase of 11 percent in both U.S.
dollars and local currency.
- Products: $2.25 billion, compared
with $1.93 billion for the fourth quarter of fiscal 2015, an
increase of 17 percent in U.S. dollars and 18 percent in local
currency.
- Resources: $1.20 billion, compared
with $1.23 billion for the fourth quarter of fiscal 2015, a
decrease of 3 percent in U.S. dollars and flat in local
currency.
Net Revenues by Geographic Region
Net revenues by geographic region for the fourth quarter were as
follows:
- North America: $4.08 billion,
compared with $3.72 billion for the fourth quarter of fiscal
2015, an increase of 10 percent in both U.S. dollars and local
currency.
- Europe: $2.83 billion, compared
with $2.71 billion for the fourth quarter of fiscal 2015, an
increase of 4 percent in U.S. dollars and 8 percent in local
currency.
- Growth Markets: $1.57 billion,
compared with $1.46 billion for the fourth quarter of fiscal 2015,
an increase of 8 percent in U.S. dollars and 9 percent in local
currency.
Full Year Fiscal 2016
Net revenues for the full 2016 fiscal year were
$32.9 billion, compared with $31.0 billion for fiscal
2015, an increase of 6 percent in U.S. dollars and 10.5
percent in local currency. Net revenues for fiscal 2016 reflect a
foreign-exchange impact of approximately negative 4.5 percent
compared with fiscal 2015.
- Consulting net revenues were $17.9
billion, an increase of 10 percent in U.S. dollars and 15
percent in local currency compared with fiscal 2015.
- Outsourcing net revenues were
$15.0 billion, an increase of 1 percent in U.S. dollars
and 6 percent in local currency compared with fiscal 2015.
GAAP diluted EPS for the full 2016 fiscal year were $6.45,
compared with $4.76 for fiscal 2015. In fiscal 2016, gains totaling
$849 million, pre-tax, on the sale of businesses had a positive
$1.11 impact on EPS. In fiscal 2015, the pension settlement charge
of $64 million, pre-tax, had a negative $0.06 impact on EPS.
Excluding these items, EPS of $5.34 for fiscal 2016 increased
$0.52, or 11 percent, from fiscal 2015. The $0.52 increase in
EPS on an adjusted basis reflects:
- a $0.34 increase from higher revenue
and operating results;
- a $0.13 increase from a lower effective
tax rate; and
- a $0.08 increase from a lower share
count;
partially offset by
- a $0.03 decrease from higher
non-operating expense.
Gross margin (gross profit as a percentage of net revenues) for
fiscal 2016 was 31.3 percent, compared with 31.6 percent
for fiscal 2015. Selling, general and administrative (SG&A)
expenses for the full fiscal year were $5.47 billion, or
16.6 percent of net revenues, compared with
$5.31 billion, or 17.1 percent of net revenues, for
fiscal 2015.
Operating income for the full fiscal year was
$4.81 billion, or 14.6 percent of net revenues, compared
with $4.44 billion, or 14.3 percent of net revenues, for
fiscal 2015, which included the $64 million, or 20
basis-point, impact of the pension settlement charge. Operating
margin for fiscal 2016 expanded 10 basis points from the adjusted
operating margin of 14.5 percent in fiscal 2015.
Accenture’s annual effective tax rate for fiscal 2016 was 22.4
percent, compared with 25.8 percent in fiscal 2015. Excluding
the impact of the gains on the sale of businesses in fiscal 2016,
and the impact of the pension settlement charge in fiscal 2015, the
effective tax rates were 24.2 percent and 26.0 percent,
respectively.
Net income for the full fiscal year was $4.35 billion, compared
with $3.27 billion for fiscal 2015. Excluding the $745
million after-tax impact of the gains on the sale of businesses in
fiscal 2016, and the $39 million after-tax impact of the pension
settlement charge in fiscal 2015, net income was $3.60 billion and
$3.31 billion, respectively.
For the full 2016 fiscal year, operating cash flow was
$4.58 billion and property and equipment additions were
$497 million. Free cash flow, defined as operating cash
flow net of property and equipment additions, was
$4.08 billion. For the prior fiscal year, ended Aug. 31, 2015,
operating cash flow was $4.09 billion, property and equipment
additions were $395 million, and free cash flow was
$3.70 billion.
Utilization for the full 2016 fiscal year was 91 percent,
compared with 90 percent for fiscal 2015. Attrition for the
full 2016 fiscal year was 14 percent, compared with 14 percent
for fiscal 2015.
New Bookings
New bookings for the full fiscal year were $35.4 billion,
an increase of 3 percent in U.S. dollars and 7 percent in
local currency over fiscal 2015.
- Consulting new bookings were
$19.2 billion, an increase of 15 percent in U.S. dollars and
19 percent in local currency compared with fiscal 2015. Consulting
represented 54 percent of new bookings in fiscal 2016.
- Outsourcing new bookings were
$16.2 billion, a decrease of 8 percent in U.S. dollars
and 4 percent in local currency compared with fiscal 2015.
Outsourcing represented 46 percent of new bookings in fiscal
2016.
Net Revenues by Operating Group
Net revenues by operating group for the full fiscal year were as
follows:
- Communications, Media & Technology:
$6.62 billion, compared with $6.35 billion for fiscal
2015, an increase of 4 percent in U.S. dollars and 9 percent
in local currency.
- Financial Services: $7.03 billion,
compared with $6.63 billion for fiscal 2015, an increase of 6
percent in U.S. dollars and 11 percent in local currency.
- Health & Public Service:
$5.99 billion, compared with $5.46 billion for fiscal
2015, an increase of 10 percent in U.S. dollars and 12 percent
in local currency.
- Products: $8.40 billion, compared
with $7.60 billion for fiscal 2015, an increase of
11 percent in U.S. dollars and 15 percent in local
currency.
- Resources: $4.84 billion, compared
with $4.99 billion for fiscal 2015, a decrease of
3 percent in U.S. dollars and an increase of 3 percent in
local currency.
Net Revenues by Geographic Region
Net revenues by geographic region for the full fiscal year were
as follows:
- North America: $15.65 billion,
compared with $14.21 billion for fiscal 2015, an increase of
10 percent in U.S. dollars and 11 percent in local
currency.
- Europe: $11.45 billion, compared
with $10.93 billion for fiscal 2015, an increase of
5 percent in U.S. dollars and 11 percent in local
currency.
- Growth Markets: $5.78 billion,
compared with $5.91 billion for fiscal 2015, a decrease of 2
percent in U.S. dollars and an increase of 8 percent in local
currency.
Returning Cash to
Shareholders
Accenture continues to return cash to shareholders through cash
dividends and share repurchases. In fiscal 2016, the company
returned $4.04 billion to shareholders, including
$1.44 billion in cash dividends and $2.60 billion in share
repurchases.
Dividend
Accenture plc has declared a semi-annual cash dividend of $1.21
per share on Accenture plc Class A ordinary shares for shareholders
of record at the close of business on Oct. 21, 2016, and Accenture
Holdings plc will declare a semi-annual cash dividend of $1.21 per
share on Accenture Holdings ordinary shares for shareholders of
record at the close of business on Oct. 18, 2016. Both dividends
are payable on Nov. 15, 2016. This represents an increase of
$0.11 per share, or 10 percent, over the company’s
previous semi-annual dividend, declared in March.
Share Repurchase Activity
During the fourth quarter of fiscal 2016, Accenture repurchased
or redeemed 5.6 million shares, including 4.4 million
shares repurchased in the open market, for a total of
$640 million. During the full fiscal year 2016, Accenture
repurchased or redeemed 24.5 million shares, including
20.0 million shares repurchased in the open market, for a
total of $2.60 billion.
Accenture’s total remaining share repurchase authority at Aug.
31, 2106 was approximately $5.4 billion.
At Aug. 31, 2016, Accenture had approximately 650 million total
shares outstanding, including 621 million Accenture plc Class A
ordinary shares and minority holdings of 29 million shares
(Accenture Holdings plc ordinary shares and Accenture Canada
Holdings Inc. exchangeable shares).
Business Outlook
First Quarter Fiscal 2017
Accenture expects net revenues for the first quarter of fiscal
2017 to be in the range of $8.40 billion to
$8.65 billion, 5 percent to 8 percent growth in local
currency, reflecting the company’s assumption of a flat
foreign-exchange impact compared with the first quarter of fiscal
2016.
Fiscal Year 2017
Accenture’s business outlook for the full 2017 fiscal year
assumes that the foreign-exchange impact on its results in U.S.
dollars will be flat compared with fiscal 2016.
For fiscal 2017, the company expects net revenue growth to be in
the range of 5 percent to 8 percent in local currency.
The company expects GAAP diluted EPS to be in the range of
$5.75 to $5.98.
Accenture expects operating margin for the full fiscal year to
be in the range of 14.7 percent to 14.9 percent, an
expansion of 10 to 30 basis points from fiscal 2016.
For fiscal 2017, the company expects operating cash flow to be
in the range of $4.6 billion to $4.9 billion; property
and equipment additions to be $600 million; and free cash flow
to be in the range of $4.0 billion to $4.3 billion.
The company expects its annual effective tax rate to be in the
range of 22 percent to 24 percent, including an estimated
benefit of less than 2 percentage points from the early adoption of
a new accounting standard* for employee share-based payments.
*Accounting Standards Update No. 2016-09, Improvements to
Employee Share-Based Payment Accounting.
Conference Call and Webcast
Details
Accenture will host a conference call at 8:00 a.m. EDT today to
discuss its fourth-quarter financial results. To participate,
please dial +1 (800) 230-1092 [+1 (612) 288-0329 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,
Sept. 29, and continuing until Wednesday, Dec. 21, 2016. A podcast
of the conference call will be available online at
www.accenture.com beginning approximately 24 hours after the call
and continuing until Wednesday, Dec. 21, 2016. 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 401074 from 10:30 a.m. EDT Thursday,
Sept. 29 through Wednesday, Dec. 21, 2016.
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining unmatched
experience and specialized skills across more than 40 industries
and all business functions – underpinned by the world’s largest
delivery network – Accenture works at the intersection of business
and technology to help clients improve their performance and create
sustainable value for their stakeholders. With approximately
384,000 people serving clients in more than 120 countries,
Accenture drives innovation to improve the way the world works and
lives. Visit us at 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; 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; 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, entering into joint ventures or divesting businesses;
the company’s Global Delivery Network is increasingly concentrated
in India and the Philippines, which may expose it to operational
risks; 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; if the
company is unable to manage the organizational challenges
associated with its size, the company might be unable to achieve
its business objectives; 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; 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; the company’s results
of operations and share price could be adversely affected if it is
unable to maintain effective internal controls; 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 Year Ended
August 31, 2016
% of NetRevenues
August 31, 2015
% of NetRevenues
August 31, 2016
% of NetRevenues
August 31, 2015
% of NetRevenues
REVENUES: Revenues before reimbursements(“Net revenues”) $
8,489,238 100% $ 7,888,505 100% $ 32,882,723 100% $ 31,047,931 100%
Reimbursements 476,342 476,006 1,914,938 1,866,493 Revenues
8,965,580 8,364,511 34,797,661 32,914,424
OPERATING
EXPENSES: Cost of services: Cost of services before
reimbursable expenses 5,833,698 68.7% 5,384,100 68.3% 22,605,296
68.7% 21,238,692 68.4% Reimbursable expenses 476,342 476,006
1,914,938 1,866,493 Cost of services 6,310,040 5,860,106 24,520,234
23,105,185 Sales and marketing 940,544 11.1% 924,114 11.7%
3,580,439 10.9% 3,505,045 11.3% General and administrative costs
519,798 6.1% 486,683 6.2% 1,886,543 5.7% 1,803,943 5.8% Pension
settlement charge — — — 64,382 0.2% Total operating expenses
7,770,382 7,270,903 29,987,216 28,478,555
OPERATING INCOME
1,195,198 14.1% 1,093,608 13.9% 4,810,445 14.6% 4,435,869 14.3%
Interest income 8,952 8,111 30,484 33,991 Interest expense (3,952)
(3,832) (16,258) (14,578) Other (expense) income, net (36,531)
(16,426) (69,922) (44,752) Gain on sale of businesses 295,246 —
848,823 —
INCOME BEFORE INCOME TAXES 1,458,913 17.2%
1,081,461 13.7% 5,603,572 17.0% 4,410,530 14.2% Provision for
income taxes 328,132 293,336 1,253,969 1,136,741
NET INCOME
1,130,781 13.3% 788,125 10.0% 4,349,603 13.2% 3,273,789 10.5% Net
income attributable to noncontrolling interests in Accenture
Holdings plc and Accenture Canada Holdings Inc. (50,031) (40,953)
(195,560) (178,925) Net income attributable to noncontrolling
interests – other (1) (11,524) (9,544) (42,151) (41,283)
NET
INCOME ATTRIBUTABLE TO ACCENTURE PLC $ 1,069,226 12.6% $
737,628 9.4% $ 4,111,892 12.5% $ 3,053,581 9.8%
CALCULATION OF
EARNINGS PER SHARE: Net income attributable to Accenture plc $
1,069,226 $ 737,628 $ 4,111,892 $ 3,053,581 Net income attributable
to noncontrolling interests in Accenture Holdings plc and Accenture
Canada Holdings Inc. (2) 50,031 40,953 195,560 178,925 Net income
for diluted earnings per share calculation $ 1,119,257 $ 778,581 $
4,307,452 $ 3,232,506
EARNINGS PER SHARE: -Basic $ 1.72 $
1.18 $ 6.58 $ 4.87 -Diluted $ 1.68 $ 1.15 $ 6.45 $ 4.76
WEIGHTED
AVERAGE SHARES: -Basic 622,555,642 624,715,181 624,797,820
626,799,586 -Diluted 665,365,231 675,749,438 667,770,274
678,757,070 Cash dividends per share $ — $ — $ 2.20 $ 2.04
_______________
(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 Holdings plc ordinary 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)
PercentIncrease Local
Currency
PercentIncrease(Decrease)U.S.
dollars
Three Months Ended August 31, 2016 August 31,
2015 OPERATING GROUPS Communications, Media &
Technology $ 1,696,671 $ 1,638,072 4% 5% Financial Services
1,796,232 1,690,696 6 9 Health & Public Service 1,541,251
1,390,552 11 11 Products 2,252,315 1,931,567 17 18 Resources
1,199,073 1,233,469 (3) — Other 3,696 4,149 n/m n/m
TOTAL Net
Revenues 8,489,238 7,888,505 8% 9% Reimbursements 476,342
476,006 —
TOTAL REVENUES $ 8,965,580 $ 8,364,511 7%
GEOGRAPHY North America $ 4,082,425 $ 3,715,006 10% 10%
Europe 2,832,516 2,711,716 4 8 Growth Markets 1,574,297 1,461,783 8
9
TOTAL Net Revenues $ 8,489,238 $ 7,888,505 8% 9%
TYPE
OF WORK Consulting $ 4,607,715 $ 4,159,936 11% 13% Outsourcing
3,881,523 3,728,569 4 6
TOTAL Net Revenues $ 8,489,238 $
7,888,505 8% 9%
PercentIncrease Local
Currency
PercentIncrease
(Decrease) U.S. dollars
Year Ended August 31, 2016 August 31, 2015
OPERATING GROUPS Communications, Media & Technology $
6,615,717 $ 6,349,372 4% 9% Financial Services 7,031,053 6,634,771
6 11 Health & Public Service 5,986,878 5,462,550 10 12 Products
8,395,038 7,596,051 11 15 Resources 4,838,963 4,988,627 (3) 3 Other
15,074 16,560 n/m n/m
TOTAL Net Revenues 32,882,723
31,047,931 6% 10% Reimbursements 1,914,938 1,866,493 3
TOTAL
REVENUES $ 34,797,661 $ 32,914,424 6%
GEOGRAPHY North
America $ 15,653,290 $ 14,209,387 10% 11% Europe 11,448,361
10,929,572 5 11 Growth Markets 5,781,072 5,908,972 (2) 8
TOTAL
Net Revenues $ 32,882,723 $ 31,047,931 6% 10%
TYPE OF
WORK Consulting $ 17,867,891 $ 16,203,915 10% 15% Outsourcing
15,014,832 14,844,016 1 6
TOTAL Net Revenues $ 32,882,723 $
31,047,931 6% 10%
_______________
n/m = not meaningful
ACCENTURE PLC
OPERATING INCOME BY OPERATING
GROUP(In thousands of U.S.
dollars)(Unaudited)
Three Months Ended August 31, 2016
August 31, 2015
OperatingIncome
OperatingMargin
OperatingIncome
OperatingMargin
Communications, Media & Technology $ 215,845 13% $ 243,068 15%
Financial Services 280,064 16 287,791 17 Health & Public
Service 181,502 12 132,683 10 Products 358,737 16 265,631 14
Resources 159,050 13 164,435 13 Total $ 1,195,198 14.1% $ 1,093,608
13.9%
RECONCILIATION OF NET INCOME AND
DILUTED EARNINGS PER SHARE, AS REPORTED (GAAP), TO NET
INCOMEAND DILUTED EARNINGS PER SHARE, AS ADJUSTED
(NON-GAAP)(In thousands of U.S. dollars, except per share
amounts)(Unaudited)
Three Months Ended August 31, 2016
August 31, 2015
As Reported(GAAP)
Gain onSale(1)
Adjusted(Non-GAAP)
As Reported (GAAP)
Income before incomes taxes $ 1,458,913 $ (295,246) $ 1,163,667 $
1,081,461 Provision for income taxes 328,132 (45,767) 282,365
293,336 Net income $ 1,130,781 $ (249,479) $ 881,302 $ 788,125
Effective tax rate 22.5% 24.3% 27.1% Diluted earnings per share $
1.68 $ (0.37) $ 1.31 $ 1.15
_________
(1) Represents gain on the sale of businesses related
to the divestiture of Navitaire and the partial divestiture of Duck
Creek Technologies.
ACCENTURE PLC
OPERATING INCOME BY OPERATING
GROUP(In thousands of U.S.
dollars)(Unaudited)
Year Ended August 31, 2016 August
31, 2015 OperatingIncome
OperatingMargin OperatingIncome
OperatingMargin Communications, Media &
Technology $ 965,574 15% $ 871,388 14% Financial Services 1,127,750
16 1,079,397 16 Health & Public Service 807,012 13 700,960 13
Products 1,282,461 15 1,082,351 14 Resources 627,648 13 701,773 14
Total $ 4,810,445 14.6% $ 4,435,869 14.3%
Year Ended August 31, 2016 August 31,
2015
Operating Income and Operating
Margin as Reported (GAAP)
Operating Income and
OperatingMargin Excluding Pension SettlementCharge
(Non-GAAP)
OperatingIncome
OperatingMargin
OperatingIncome
(GAAP)
PensionSettlementCharge
(2)
OperatingIncome(Adjusted)
OperatingMargin(Adjusted)
Increase(Decrease)
Communications, Media & Technology $ 965,574 15% $ 871,388 $
12,547 $ 883,935 14% $ 81,639 Financial Services 1,127,750 16
1,079,397 13,460 1,092,857 16 34,893 Health & Public Service
807,012 13 700,960 11,664 712,624 13 94,388 Products 1,282,461 15
1,082,351 15,823 1,098,174 14 184,287 Resources 627,648 13 701,773
10,888 712,661 14 (85,013) Total $ 4,810,445 14.6% $ 4,435,869 $
64,382 $ 4,500,251 14.5% $ 310,194
RECONCILIATION OF NET INCOME AND
DILUTED EARNINGS PER SHARE, AS REPORTED (GAAP), TO NET
INCOMEAND DILUTED EARNINGS PER SHARE, AS ADJUSTED
(NON-GAAP)(In thousands of U.S. dollars, except per share
amounts)(Unaudited)
Year Ended August 31, 2016 August
31, 2015
As Reported(GAAP)
Gain on Sale(1)
Adjusted(Non-GAAP)
As Reported(GAAP)
PensionSettlementCharge
(2)
Adjusted(Non-GAAP)
Income before incomes taxes $ 5,603,572 $ (848,823) $ 4,754,749 $
4,410,530 $ 64,382 $ 4,474,912 Provision for income taxes 1,253,969
(104,045) 1,149,924 1,136,741 25,238 1,161,979 Net income $
4,349,603 $ (744,778) $ 3,604,825 $ 3,273,789 $ 39,144 $ 3,312,933
Effective tax rate 22.4% 24.2% 25.8% 26.0% Diluted earnings per
share $ 6.45 $ (1.11) $ 5.34 $ 4.76 $ 0.06 $ 4.82
_________
(1) Represents gain on the sale of businesses related
to the divestiture of Navitaire and the partial divestiture of Duck
Creek Technologies. (2) Represents non-cash pension settlement
charge related to lump sum cash payment from plan assets offered to
eligible former employees.
ACCENTURE PLC
CONSOLIDATED BALANCE SHEET(In
thousands of U.S. dollars)(Unaudited)
August 31, 2016 August 31, 2015
(Unaudited) ASSETS CURRENT ASSETS: Cash and
cash equivalents $ 4,905,609 $ 4,360,766 Short-term investments
2,875 2,448 Receivables from clients, net 4,072,180 3,840,920
Unbilled services, net 2,150,219 1,884,504 Other current assets
792,204 611,436 Total current assets 11,923,087 10,700,074
NON-CURRENT ASSETS: Unbilled services, net 68,145 15,501
Investments 198,633 45,027 Property and equipment, net 956,542
801,884 Goodwill 3,609,437 2,929,833 Other non-current assets
3,873,357 3,710,328 Total non-current assets 8,706,114 7,502,573
TOTAL ASSETS $ 20,629,201 $ 18,202,647
LIABILITIES AND
SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Current
portion of long-term debt and bank borrowings $ 2,773 $ 1,848
Accounts payable 1,280,821 1,151,464 Deferred revenues 2,364,728
2,251,617 Accrued payroll and related benefits 4,040,751 3,687,468
Other accrued liabilities 1,210,048 1,398,609 Total current
liabilities 8,899,121 8,491,006
NON-CURRENT LIABILITIES:
Long-term debt 24,457 25,587 Other non-current liabilities
3,516,247 3,038,483 Total non-current liabilities 3,540,704
3,064,070
TOTAL ACCENTURE PLC SHAREHOLDERS’ EQUITY 7,555,262
6,133,725
NONCONTROLLING INTERESTS 634,114 513,846
TOTAL
SHAREHOLDERS’ EQUITY 8,189,376 6,647,571
TOTAL LIABILITIES
AND SHAREHOLDERS’ EQUITY $ 20,629,201 $ 18,202,647
ACCENTURE PLC
CONSOLIDATED CASH FLOWS
STATEMENTS(In thousands of U.S.
dollars)(Unaudited)
Three Months Ended Year Ended
August 31,2016
August 31,2015
August 31,2016
August 31,2015
CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,130,781
$ 788,125 $ 4,349,603 $ 3,273,789 Depreciation, amortization and
asset impairments 193,415 173,763 729,052 645,923 Share-based
compensation expense 173,532 148,638 758,176 680,329 Gain on sale
of businesses (295,246) — (848,823) — Change in assets and
liabilities/other, net 852,957 394,060 (412,893) (507,904) Net cash
provided by operating activities 2,055,439 1,504,586 4,575,115
4,092,137
CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of
property and equipment (160,066) (148,037) (496,566) (395,017)
Purchases of businesses, net of cash acquired (99,994) (349,502)
(932,542) (791,704) Proceeds from sale of businesses, net of cash
transferred 196,228 — 814,538 10,553 Other investing, net 1,360
3,050 4,220 5,784 Net cash used in investing activities (62,472)
(494,489) (610,350) (1,170,384)
CASH FLOWS FROM FINANCING
ACTIVITIES: Proceeds from issuance of ordinary shares 65,365
57,810 591,357 554,149 Purchases of shares (639,939) (664,015)
(2,604,989) (2,452,989) Cash dividends paid — — (1,438,138)
(1,353,471) Other financing, net (13,564) (2,154) 54,837 50,015 Net
cash used in financing activities (588,138) (608,359) (3,396,933)
(3,202,296) Effect of exchange rate changes on cash and cash
equivalents 2,902 (67,161) (22,989) (279,996)
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS 1,407,731 334,577
544,843 (560,539)
CASH AND CASH EQUIVALENTS, beginning of
period 3,497,878 4,026,189 4,360,766 4,921,305
CASH AND CASH
EQUIVALENTS, end of period $ 4,905,609 $ 4,360,766 $ 4,905,609
$ 4,360,766
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160929005260/en/
AccentureRoxanne Taylor,
+1-917-452-5106roxanne.taylor@accenture.com
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