-- Revenues increase 5% in U.S. dollars and 6%
in local currency to $8.3 billion --
-- EPS are $1.33; operating income increases 5%
to $1.14 billion, with operating margin of 13.7% --
-- New bookings are $9.2 billion, with
consulting bookings of $4.6 billion and outsourcing bookings of
$4.6 billion --
-- Company declares semi-annual cash dividend
of $1.21 per share, a 10% increase over the prior year --
-- Accenture updates business outlook for
fiscal 2017, including narrowing its range for full-year revenue
growth to 6-8% in local currency, compared with 5-8% previously
--
Accenture (NYSE:ACN) reported financial results for the second
quarter of fiscal 2017, ended Feb. 28, 2017, with net revenues of
$8.3 billion, an increase of 5 percent in U.S. dollars
and 6 percent in local currency over the same period last year.
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Diluted earnings per share were $1.33, compared with $2.08 for
the second quarter last year, which included a $0.74 gain on the
sale of Navitaire. Excluding this gain, diluted EPS for the second
quarter last year were $1.34. For the first half of fiscal 2017,
diluted EPS were $2.91, a 13 percent decrease from $3.36 for the
same period last year. On an adjusted basis, excluding the impact
of the Navitaire gain in fiscal 2016, diluted EPS for the first
half of fiscal 2017 increased 11 percent.
Operating income for the quarter was $1.14 billion, an increase
of 5 percent over the same period last year, and operating margin
was 13.7 percent. For the first half of fiscal 2017, operating
income grew 7 percent to $2.47 billion, or 14.7 percent of net
revenues – an expansion of 20 basis points from the same period
last year.
New bookings for the quarter were $9.2 billion, with consulting
bookings of $4.6 billion and outsourcing bookings of
$4.6 billion.
Pierre Nanterme, Accenture’s chairman and CEO, said, “We are
pleased with our financial results for the second quarter and first
half of fiscal 2017. For the quarter, we delivered 6 percent
revenue growth in local currency – which again was broad-based
across the business – and we generated strong new bookings that
position us well for the second half of the year. I am particularly
pleased that we continue to make substantial investments in our
business while returning more than $2 billion in cash to our
shareholders year to date.
“Our strong performance reflects our continued rotation to new,
high-growth areas such as digital, cloud and security services –
which now account for more than 45 percent of total revenues – as
well as our increasingly innovation-led approach to creating
cutting-edge solutions for clients. With our highly differentiated
capabilities and disciplined management of the business, we are
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 2017 were $8.32 billion, compared with
$7.95 billion for the second quarter of fiscal 2016, an
increase of 5 percent in U.S. dollars and 6 percent in
local currency, and within the company’s guided range of $8.15
billion to $8.40 billion. The foreign-exchange impact for the
quarter was approximately negative 2 percent, consistent with the
assumption provided in the company’s first-quarter earnings
release.
- Consulting net revenues for the quarter
were $4.41 billion, an increase of 3 percent in U.S. dollars and 5
percent in local currency compared with the second quarter of
fiscal 2016.
- Outsourcing net revenues were $3.91
billion, an increase of 7 percent in U.S. dollars and
8 percent in local currency compared with the second quarter
of fiscal 2016.
Diluted EPS for the quarter were $1.33, compared with $2.08 for
the second quarter last year, which included a $0.74 gain on the
sale of Navitaire. Excluding this gain, EPS for the second quarter
of fiscal 2016 were $1.34. The $0.01 decrease in EPS on an adjusted
basis in the second quarter of fiscal 2017 reflects:
- a $0.07 increase from higher
revenue and operating results; and
- a $0.01 increase from a lower share
count;
offset by
- a $0.09 decrease from a higher
effective tax rate.
Gross margin (gross profit as a percentage of net revenues) for
the quarter was 30.1 percent, compared with 29.8 percent for
the second quarter last year. Selling, general and administrative
(SG&A) expenses for the quarter were $1.37 billion, or
16.4 percent of net revenues, compared with $1.28 billion, or
16.1 percent of net revenues, for the second quarter last
year.
Operating income for the quarter increased 5 percent, to $1.14
billion, or 13.7 percent of net revenues, compared with $1.09
billion, or 13.7 percent of net revenues, for the second
quarter of fiscal 2016.
The company’s effective tax rate for the quarter was
20.7 percent, compared with 13.7 percent for the second
quarter last year. Excluding the impact of the gain on the sale of
Navitaire, the effective tax rate for the second quarter of fiscal
2016 was 15.4 percent. The higher effective tax rate for the second
quarter of fiscal 2017 was primarily due to adjustments to
prior-year tax liabilities, partially offset by recognition of
excess tax benefits from share-based payments as a result of the
adoption of Accounting Standards Update No. 2016-09.
Net income for the quarter was $887 million, compared with $1.40
billion for the second quarter last year. Excluding the $495
million after-tax impact of the gain on the sale of Navitaire, net
income for the second quarter of fiscal 2016 was $905 million.
Operating cash flow for the quarter was $155 million and
property and equipment additions were $104 million. For the
same period last year, operating cash flow was $364 million
and property and equipment additions were $148 million. Free
cash flow, defined as operating cash flow net of property and
equipment additions, was $50 million for the quarter and $1.05
billion for the year to date, compared to $216 million and
$765 million for the same periods last year.
Days services outstanding, or DSOs, were 42 days at Feb. 28,
2017, compared with 39 days at Aug. 31, 2016 and 39 days at Feb.
29, 2016.
Accenture’s total cash balance at Feb. 28, 2017 was
$3.2 billion, compared with $4.9 billion at Aug. 31,
2016.
New Bookings
New bookings for the second quarter were $9.2 billion and
reflect a negative 2 percent foreign-currency impact compared
with new bookings in the second quarter last year.
- Consulting new bookings were
$4.6 billion, or 50 percent of total new bookings.
- Outsourcing new bookings were
$4.6 billion, or 50 percent of total new bookings.
Net Revenues by Operating Group
Net revenues by operating group were as follows:
- Communications, Media & Technology:
$1.62 billion, compared with $1.61 billion for the second
quarter of fiscal 2016, an increase of 1 percent in both U.S.
dollars and local currency.
- Financial Services: $1.77 billion,
compared with $1.68 billion for the second quarter of fiscal
2016, an increase of 5 percent in U.S. dollars and 8 percent
in local currency.
- Health & Public Service: $1.51
billion, compared with $1.48 billion for the second quarter of
fiscal 2016, an increase of 2 percent in both U.S. dollars and
local currency.
- Products: $2.26 billion, compared
with $1.99 billion for the second quarter of fiscal 2016, an
increase of 14 percent in U.S. dollars and 15 percent in local
currency.
- Resources: $1.14 billion, compared
with $1.17 billion for the second quarter of fiscal 2016, a
decrease of 2 percent in U.S. dollars and 1 percent in local
currency.
Net Revenues by Geographic Region
Net revenues by geographic region for the second quarter of
fiscal 2017 were as follows:
- North America: $3.96 billion,
compared with $3.79 billion for the second quarter of fiscal
2016, an increase of 4 percent in both U.S. dollars and local
currency.
- Europe: $2.83 billion, compared with
$2.78 billion for the second quarter of fiscal 2016, an
increase of 2 percent in U.S. dollars and 7 percent in local
currency.
- Growth Markets: $1.53 billion,
compared with $1.37 billion for the second quarter of fiscal 2016,
an increase of 12 percent in U.S. dollars and 9 percent
in local currency.
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 $1.21
per share on Accenture plc Class A ordinary shares for shareholders
of record at the close of business on April 13, 2017, and Accenture
Holdings plc has declared a semi-annual cash dividend of $1.21 per
share on Accenture Holdings plc ordinary shares for shareholders of
record at the close of business on April 10, 2017. These dividends
are both payable on May 15, 2017.
Combined with the semi-annual cash dividend of $1.21 per share
paid on Nov. 15, 2016, this will bring the total dividend payments
for the fiscal year to $2.42 per share, for total projected cash
dividend payments of approximately $1.57 billion.
Share Repurchase Activity
During the second quarter of fiscal 2017, Accenture repurchased
or redeemed 7.0 million shares, including 5.2 million shares
repurchased in the open market, for a total of $816 million.
This brings Accenture’s total share repurchases and redemptions for
the first half of fiscal 2017 to 12.0 million shares, including 9.1
million shares repurchased in the open market, for a total of $1.40
billion.
Accenture’s total remaining share repurchase authority at Feb.
28, 2017 was approximately $4.3 billion.
At Feb. 28, 2017, Accenture had approximately 648 million
total shares outstanding, including 620 million Accenture plc
Class A ordinary shares and minority holdings of 28 million
shares (Accenture Holdings plc ordinary shares and Accenture Canada
Holdings Inc. exchangeable shares).
Business Outlook
Third Quarter Fiscal 2017
Accenture expects net revenues for the third quarter of fiscal
2017 to be in the range of $8.65 billion to
$8.90 billion, 5 percent to 8 percent growth in local
currency, reflecting the company’s assumption of a negative 2.5
percent foreign-exchange impact compared with the third quarter of
fiscal 2016.
Fiscal Year 2017
Accenture’s business outlook for the full 2017 fiscal year
continues to assume that the foreign-exchange impact on its results
in U.S. dollars will be negative 2 percent compared with
fiscal 2016.
For fiscal 2017, the company now expects net revenue growth to
be in the range of 6 percent to 8 percent in local
currency, compared with 5 percent to 8 percent previously.
In May 2017, the company expects to record a principally
non-cash settlement charge of approximately $425 million,
pre-tax, in connection with the termination of its U.S. pension
plan. This settlement charge will reduce the company’s fiscal 2017
GAAP EPS by approximately $0.39 and its full-year GAAP operating
margin by approximately 120 basis points.
Accenture now expects diluted GAAP EPS to be in the range of
$5.31 to $5.48, including the impact of the settlement charge.
Excluding the settlement charge, the company now expects EPS to be
in the range of $5.70 to $5.87, compared with $5.64 to $5.87
previously.
Accenture now expects GAAP operating margin for the full fiscal
year to be in the range of 13.5 percent to 13.7 percent.
Excluding the settlement charge, the company continues to expect
operating margin 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 continues to expect 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.
Accenture now expects the GAAP annual effective tax rate to be
21 percent to 23 percent. Excluding the impact of the settlement
charge, the company continues to expect its annual effective tax
rate to be in the range of 22 percent to 24 percent.
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) 230-1096 [+1 (612) 288-0337 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. 23, and continuing until Thursday, June 22, 2017. 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 22, 2017. 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 418844 from 10:30 a.m. EDT Thursday, Mar. 23
through Thursday, June 22, 2017.
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
401,000 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, including through the adaptation and
expansion of its services and solutions in response to ongoing
changes in technology and offerings, and a significant reduction in
such demand or an inability to respond to the changing
technological environment 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 from security breaches or
cyberattacks; the company’s profitability could materially suffer
if the company is unable to obtain favorable pricing for its
services and solutions, if the company is unable to remain
competitive, if its cost-management strategies are unsuccessful or
if it experiences delivery inefficiencies; changes in the company’s
level of taxes, as well as audits, investigations and tax
proceedings, or changes in tax laws or in their interpretation or
enforcement, could have a material adverse effect on the company’s
effective tax rate, results of operations, cash flows and financial
condition; the company’s results of operations could be materially
adversely affected by fluctuations in foreign currency exchange
rates; 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, investing in 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; 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 PLCCONSOLIDATED INCOME
STATEMENTS(In thousands of U.S. dollars, except share and
per share amounts)(Unaudited)
Three Months Ended Six Months Ended
February 28, 2017
% of NetRevenues
February 29, 2016
% of NetRevenues
February 28, 2017
% of NetRevenues
February 29, 2016
% of NetRevenues
REVENUES: Revenues before reimbursements (“Net revenues”) $
8,317,671 100 % $ 7,945,565 100 % $ 16,833,188 100 % $ 15,958,728
100 % Reimbursements 444,511 451,488
934,597 904,309 Revenues 8,762,182
8,397,053 17,767,785 16,863,037
OPERATING EXPENSES: Cost of
services: Cost of services before reimbursable expenses 5,813,515
69.9 % 5,575,749 70.2 % 11,599,000 68.9 % 11,026,393 69.1 %
Reimbursable expenses 444,511 451,488
934,597 904,309 Cost of services
6,258,026 6,027,237 12,533,597 11,930,702 Sales and marketing
871,489 10.5 % 830,332 10.5 % 1,760,316 10.5 % 1,706,125 10.7 %
General and administrative costs 494,014 5.9 %
451,440 5.7 % 1,003,260 6.0 % 916,906
5.7 % Total operating expenses 7,623,529
7,309,009 15,297,173 14,553,733
OPERATING INCOME 1,138,653 13.7 % 1,088,044 13.7 %
2,470,612 14.7 % 2,309,304 14.5 % Interest income 8,728 6,727
17,025 13,853 Interest expense (3,976 ) (4,543 ) (7,024 ) (8,595 )
Other income (expense), net (12,546 ) (21,213 ) (18,633 ) (17,184 )
Gain (loss) on sale of businesses (12,349 ) 553,577
(12,349 ) 553,577
INCOME BEFORE
INCOME TAXES 1,118,510 13.4 % 1,622,592 20.4 % 2,449,631 14.6 %
2,850,955 17.9 % Provision for income taxes 231,302
222,734 502,674 582,416
NET INCOME 887,208 10.7 % 1,399,858 17.6 % 1,946,957 11.6 %
2,268,539 14.2 % Net income attributable to noncontrolling
interests in Accenture Holdings plc and Accenture Canada Holdings
Inc. (37,961 ) (63,379 ) (84,413 ) (102,955 ) Net income
attributable to noncontrolling interests – other (1) (10,495
) (9,959 ) (19,316 ) (20,165 )
NET INCOME
ATTRIBUTABLE TO ACCENTURE PLC $ 838,752 10.1 % $
1,326,520 16.7 % $ 1,843,228 10.9 % $ 2,145,419
13.4 %
CALCULATION OF EARNINGS PER SHARE: Net income
attributable to Accenture plc $ 838,752 $ 1,326,520 $ 1,843,228 $
2,145,419 Net income attributable to noncontrolling interests in
Accenture Holdings plc and Accenture Canada Holdings Inc. (2)
37,961 63,379 84,413
102,955 Net income for diluted earnings per share
calculation $ 876,713 $ 1,389,899 $ 1,927,641
$ 2,248,374
EARNINGS PER SHARE: -Basic $ 1.35 $ 2.12
$ 2.96 $ 3.42 -Diluted $ 1.33 $ 2.08 $ 2.91 $ 3.36
WEIGHTED
AVERAGE SHARES: -Basic 621,999,948 626,523,793 621,787,252
626,505,960 -Diluted 661,079,375 668,125,087 662,446,680
669,758,590 Cash dividends per share $ — $ — $ 1.21 $ 1.10
_________ (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 PLCSUMMARY OF
REVENUES(In thousands of U.S.
dollars)(Unaudited)
PercentIncrease (Decrease) U.S.
dollars PercentIncrease (Decrease)
Local Currency Three Months Ended
February 28,2017
February 29,2016
OPERATING GROUPS Communications, Media & Technology $
1,620,728 $ 1,606,700 1% 1% Financial Services 1,769,611 1,684,729
5 8 Health & Public Service 1,511,564 1,482,264 2 2 Products
2,264,828 1,994,530 14 15 Resources 1,144,725 1,173,997 (2) (1)
Other 6,215 3,345 n/m n/m
TOTAL Net Revenues
8,317,671 7,945,565 5% 6% Reimbursements 444,511
451,488 (2)
TOTAL REVENUES $ 8,762,182 $ 8,397,053 4%
GEOGRAPHY North America $ 3,956,089 $ 3,790,831 4% 4% Europe
2,826,876 2,784,723 2 7 Growth Markets 1,534,706
1,370,011 12 9
TOTAL Net Revenues $ 8,317,671 $ 7,945,565 5%
6%
TYPE OF WORK Consulting $ 4,405,985 $ 4,292,855 3% 5%
Outsourcing 3,911,686 3,652,710 7 8
TOTAL Net
Revenues $ 8,317,671 $ 7,945,565 5% 6%
Six Months
Ended PercentIncrease (Decrease) U.S.
dollars PercentIncrease (Decrease)
Local Currency
February 28,2017
February 29,2016
OPERATING GROUPS Communications, Media & Technology $
3,306,924 $ 3,211,339 3% 3% Financial Services 3,579,380 3,429,945
4 7 Health & Public Service 3,012,338 2,906,131 4 4 Products
4,584,997 3,984,653 15 16 Resources 2,339,583 2,419,081 (3) (2)
Other 9,966 7,579 n/m n/m
TOTAL Net Revenues
16,833,188 15,958,728 5% 7% Reimbursements 934,597
904,309 3
TOTAL REVENUES $ 17,767,785 $ 16,863,037 5%
GEOGRAPHY North America $ 7,937,164 $ 7,554,300 5% 5% Europe
5,768,678 5,669,471 2 7 Growth Markets 3,127,346
2,734,957 14 10
TOTAL Net Revenues $ 16,833,188 $ 15,958,728
5% 7%
TYPE OF WORK Consulting $ 8,999,004 $ 8,638,909 4% 6%
Outsourcing 7,834,184 7,319,819 7 8
TOTAL Net
Revenues $ 16,833,188 $ 15,958,728 5% 7%
n/m = not meaningful
ACCENTURE PLCOPERATING INCOME BY
OPERATING GROUP(In thousands of U.S.
dollars)(Unaudited)
Three Months Ended February 28, 2017
February 29, 2016 OperatingIncome
OperatingMargin OperatingIncome
OperatingMargin Increase(Decrease)
Communications, Media & Technology $ 214,738 13% $ 242,512 15%
$ (27,774 ) Financial Services 268,164 15 230,534 14 37,630 Health
& Public Service 189,115 13 209,795 14 (20,680 ) Products
363,762 16 286,336 14 77,426 Resources 102,874 9
118,867 10 (15,993 ) Total $ 1,138,653 13.7% $
1,088,044 13.7% $ 50,609
Six Months Ended February 28, 2017 February
29, 2016 OperatingIncome
OperatingMargin OperatingIncome
OperatingMargin Increase(Decrease)
Communications, Media & Technology $ 472,582 14% $ 490,385 15%
$ (17,803 ) Financial Services 587,653 16 553,319 16 34,334 Health
& Public Service 388,342 13 382,373 13 5,969 Products 772,461
17 577,559 14 194,902 Resources 249,574 11 305,668 13
(56,094 ) Total $ 2,470,612 14.7% $ 2,309,304 14.5%
$ 161,308
ACCENTURE PLC
RECONCILIATION OF NET INCOME AND
DILUTED EARNINGS PER SHARE, AS REPORTED (GAAP), TO NET
INCOME
AND DILUTED EARNINGS PER SHARE, AS
ADJUSTED (NON-GAAP)
(In thousands of U.S. dollars, except
per share amounts)
(Unaudited)
Three Months Ended February 28, 2017
February 29, 2016
As Reported(GAAP)
As Reported(GAAP)
Gain onSale ofBusiness
(1)
Adjusted(Non-GAAP)
Income before income taxes $ 1,118,510 $ 1,622,592 $ (553,577 ) $
1,069,015 Provision for income taxes 231,302
222,734 (58,278 ) 164,456 Net income $
887,208 $ 1,399,858 $ (495,299 ) $ 904,559
Effective tax rate 20.7 % 13.7 % 15.4 % Diluted earnings per share
$ 1.33 $ 2.08 $ (0.74 ) $ 1.34
Six Months
Ended February 28, 2017 February 29, 2016
As Reported(GAAP)
As Reported(GAAP)
Gain onSale ofBusiness
(1)
Adjusted(Non-GAAP)
Income before income taxes $ 2,449,631 $ 2,850,955 $ (553,577 ) $
2,297,378 Provision for income taxes 502,674 582,416
(58,278 ) 524,138 Net Income $ 1,946,957 $ 2,268,539
$ (495,299 ) $ 1,773,240 Effective tax rate 20.5 %
20.4 % 22.8 % Diluted earnings per share $ 2.91 $ 3.36 $ (0.74 ) $
2.62
(1) Represents gain on sale of business related to Navitaire
divestiture
ACCENTURE PLCCONSOLIDATED
BALANCE SHEETS
(In thousands of U.S. dollars)
February 28, 2017 August 31, 2016
(Unaudited) ASSETS CURRENT ASSETS: Cash and
cash equivalents $ 3,238,862 $ 4,905,609 Short-term
investments 2,502 2,875 Receivables from clients, net 4,452,252
4,072,180 Unbilled services, net 2,111,641 2,150,219 Other current
assets 958,745 845,339 Total current
assets 10,764,002 11,976,222
NON-CURRENT ASSETS: Unbilled services, net 52,898 68,145
Investments 190,358 198,633 Property and equipment, net 968,433
956,542 Goodwill 4,224,007 3,609,437 Other non-current assets
3,879,075 3,800,025
Total non-current assets
9,314,771 8,632,782
TOTAL ASSETS
$ 20,078,773 $ 20,609,004
LIABILITIES AND
SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Current
portion of long-term debt and bank borrowings $ 2,944 $ 2,773
Accounts payable 1,212,800 1,280,821 Deferred revenues 2,458,524
2,364,728 Accrued payroll and related benefits 3,292,768 4,040,751
Other accrued liabilities 1,385,737
1,189,851 Total current liabilities 8,352,773
8,878,924
NON-CURRENT LIABILITIES: Long-term debt
24,546 24,457 Other non-current liabilities 3,086,305
3,516,247 Total non-current liabilities
3,110,851 3,540,704
TOTAL ACCENTURE PLC
SHAREHOLDERS’ EQUITY 7,964,245 7,555,262
NONCONTROLLING
INTERESTS 650,904 634,114
TOTAL
SHAREHOLDERS’ EQUITY 8,615,149
8,189,376
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $
20,078,773 $ 20,609,004
ACCENTURE PLCCONSOLIDATED CASH
FLOWS STATEMENTS(In thousands of U.S.
dollars)(Unaudited)
Three Months Ended Six Months Ended
February 28,2017
February 29,2016
February 28,2017
February 29,2016
CASH FLOWS FROM OPERATING ACTIVITIES: Net income $
887,208 $ 1,399,858 $ 1,946,957 $ 2,268,539
Depreciation, amortization and asset impairments 187,807 172,745
375,240 354,627 Share-based compensation expense 252,527 228,532
402,323 357,715 (Gain) loss on sale of businesses 12,349 (553,577 )
12,349 (553,577 ) Change in assets and liabilities/other, net
(1,185,188 ) (883,363 ) (1,498,284 ) (1,419,852 ) Net cash provided
by (used in) operating activities 154,703 364,195
1,238,585 1,007,452
CASH FLOWS FROM INVESTING
ACTIVITIES: Purchases of property and equipment (104,409 )
(148,068 ) (188,962 ) (242,845 ) Purchases of businesses and
investments, net of cash acquired (230,091 ) (134,971 ) (829,198 )
(747,637 ) Proceeds from the sale of businesses and investments,
net of cash transferred (15,721 ) 618,310 (22,921 ) 618,310 Other
investing, net 6,055 588 7,293 1,539
Net cash provided by (used in) investing activities (344,166 )
335,859 (1,033,788 ) (370,633 )
CASH FLOWS FROM FINANCING
ACTIVITIES: Proceeds from issuance of ordinary shares 138,190
120,882 350,901 303,167 Purchases of shares (815,648 ) (828,950 )
(1,403,583 ) (1,486,761 ) Cash dividends paid — — (785,127 )
(720,676 ) Other financing, net (3,862 ) (12,152 ) (6,286 ) (11,935
) Net cash provided by (used in) financing activities (681,320 )
(720,220 ) (1,844,095 ) (1,916,205 ) Effect of exchange rate
changes on cash and cash equivalents 32,587 (18,368 )
(27,449 ) (46,721 )
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (838,196 ) (38,534 ) (1,666,747 ) (1,326,107 )
CASH AND CASH EQUIVALENTS, beginning of period 4,077,058
3,073,193 4,905,609 4,360,766
CASH
AND CASH EQUIVALENTS, end of period $ 3,238,862 $
3,034,659 $ 3,238,862 $
3,034,659
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version on businesswire.com: http://www.businesswire.com/news/home/20170323005293/en/
AccentureRoxanne Taylor,
+1-917-452-5106roxanne.taylor@accenture.com
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