- Q4 Earnings per Share from
Continuing Operations of $0.06 Includes Cumulative Impact of
Certain Items of ($1.20) per Share
- Q4 Non-GAAP Diluted Earnings per
Share of $1.26, up 10% YoY
- FY15 Earnings per Share from
Continuing Operations of $0.15 Includes Cumulative Impact of
Certain Items of ($4.49) per Share
- FY15 Non-GAAP Diluted Earnings per
Share of $4.64, up 9%
- FY15 Net Cash Provided by Operating
Activities of $1.43 Billion
- FY15 Free Cash Flow of $717
Million
- FY16 Non-GAAP EPS from Continuing
Operations Target of $4.75 to $5.05
CSC (NYSE: CSC) today reported results for the fourth quarter
and fiscal year 2015.
“In fiscal 2015, CSC again delivered earnings growth, margin
expansion, and healthy cash flow, and returned significant capital
to our shareholders. We finished the year with sequential revenue
growth on a constant currency basis and good bookings performance,”
said Mike Lawrie, president and CEO. “We continue to invest in new
offerings to better position CSC to capitalize on the significant
growth opportunities we are seeing in the marketplace."
Financial Highlights - Fourth Quarter Fiscal 2015
- Earnings per share from continuing
operations was $0.06 in the fourth quarter, compared with $1.83 in
the fourth quarter of fiscal 2014, and includes:
- $(1.74) from non-cash pension-related
charges,
- $(0.02) from SEC-related and other
charges,
- $(1.28) from a special restructuring
charge, and
- $1.85 benefit from a tax valuation
allowance.
- Non-GAAP diluted earnings per share was
$1.26 excluding these items, compared with $1.15 in the fourth
quarter of fiscal 2014.
- Income from continuing operations was
$13 million in the fourth quarter, compared with $276 million in
the fourth quarter of fiscal 2014, and includes:
- $(249) million from non-cash
pension-related charges,
- $(3) million from SEC-related and other
charges,
- $(183) million from a special
restructuring charge, and
- $264 million benefit from a tax
valuation allowance.
- Non-GAAP income from continuing
operations was $184 million excluding these items, compared with
$174 million in the year-ago quarter.
- (Loss) income from continuing
operations, before taxes of $(317) million includes:
- $(319) million from non-cash
pension-related charges,
- $(5) million from SEC-related and other
charges, and
- $(246) million from a special
restructuring charge.
- Non-GAAP income from continuing
operations, before taxes was $253 million excluding these
items.
- Adjusted operating income of $349
million, excluding the special restructuring charge, compares with
$364 million in the year-ago quarter. Adjusted operating margin of
12.0% increased from 10.9% in the year-ago quarter.
- Adjusted earnings before interest and
taxes (EBIT) of $283 million compares with $296 million in the
fourth quarter of fiscal 2014. Adjusted EBIT margin of 9.7%
improved from 8.9% in the year-ago quarter.
Financial Highlights - Fiscal Year 2015
- Earnings per share from continuing
operations was $0.15 in fiscal year 2015, compared with $5.70 in
fiscal 2014, and includes:
- $(3.70) from non-cash pension-related
charges,
- $(1.35) from SEC-related and other
charges,
- $(1.26) from a fourth quarter fiscal
2015 special restructuring charge, and
- $1.81 benefit from a tax valuation
allowance.
- Non-GAAP diluted earnings per share was
$4.64 excluding these items, versus $4.27 in fiscal 2014.
- Income from continuing operations was
$36 million in fiscal year 2015, compared with $880 million in
fiscal 2014, and includes:
- $(541) million from non-cash
pension-related charges,
- $(197) million from SEC-related and
other charges,
- $(183) million from a fourth quarter
fiscal 2015 special restructuring charge, and
- $264 million benefit from a tax
valuation allowance.
- Non-GAAP income from continuing
operations was $693 million excluding these items, versus $664
million in the prior year.
- (Loss) income from continuing
operations, before taxes of $(276) million includes:
- $(782) million from non-cash
pension-related charges,
- $(200) million from SEC-related and
other charges, and
- $(246) million from a fourth quarter
fiscal 2015 special restructuring charge.
- Non-GAAP income from continuing
operations, before taxes was $952 million excluding these
items.
- Adjusted operating income was $1,334
million, excluding the fourth quarter fiscal 2015 special
restructuring charge, and compares with $1,395 million in the prior
year. Adjusted operating margin of 11.0% increased from 10.7% in
the prior year.
- Adjusted EBIT was $1,080 million and
compares with $1,114 million in the prior year. Adjusted EBIT
margin of 8.9% improved from 8.6% in the prior year.
- Net cash provided by operating
activities was $1.43 billion and compares with $1.56 billion in the
prior year.
- Fiscal 2015 free cash flow was $717
million versus $689 million in the prior year.
Global Business Services
GBS revenue of $980 million in the quarter compares with $1,152
million in the year ago quarter. GBS revenue declined by 7.6% in
constant currency, driven by contract completions and the ongoing
repositioning of the consulting business, partially offset by
growth in new offerings. Adjusted operating margin of 16.7%
compared with 17.4% in the prior year, reflecting higher
investments in the business. New contract awards for GBS were $1.1
billion in the quarter.
Global Infrastructure Services
GIS revenue of $929 million in the quarter compares with $1,173
million in the year ago quarter. GIS revenue declined by 14.8% in
constant currency from the prior year, with growth in new offerings
such as MyWorkStyle desktop solutions partially offsetting the
impact of price-downs, restructurings, and contract completions.
Adjusted operating margin of 6.8% compared with 6.1% in the prior
year, driven by cost takeout benefits, partially offset by
continued investments in the business. GIS reported new contract
awards of $1.2 billion in the quarter.
North American Public Sector
NPS revenue was $1.00 billion in the quarter, flat on both a
sequential and year-over-year basis. Growth in state health IT,
NextGen IT such as Cloud, and business process outsourcing work
offset declines in other Department of Defense and federal civilian
contracts. Adjusted operating margin of 14.0% increased from 11.2%
in the prior year, as the business continues to benefit from better
contract performance and cost efficiencies. New contract awards for
NPS were $1.0 billion in the quarter.
Returning Capital to Shareholders
During the fourth quarter, CSC returned $257 million to
shareholders consisting of $33 million in common stock dividends
and $224 million of share repurchases. CSC repurchased 3.2 million
shares at an average price of $69.71.
For fiscal year 2015, CSC returned $867 million to shareholders
in the form of $131 million in common stock dividends and $736
million of share repurchases. During the year, CSC repurchased 11.7
million shares at an average price of $62.83.
CSC had 138,773,340 basic shares outstanding on April 3,
2015.
Conference Call and Webcast
CSC senior management will host a conference call and webcast at
5 p.m. ET today. The dial-in number for domestic callers is
888-542-1101. Callers who reside outside of the United States or
Canada should dial 719-325-2482. The passcode for all participants
is 9825381. The webcast audio and any presentation slides will be
available on CSC’s Investor Relations website.
A replay of the conference call will be available from
approximately two hours after the conclusion of the call until May
26, 2015. The replay dial-in number is 888-203-1112 for domestic
callers and 719-457-0820 for callers who reside outside of the
United States and Canada. The replay passcode is also 9825381. A
replay of this webcast will also be available on CSC’s website.
Non-GAAP Measures
In an effort to provide investors with additional information
regarding the Company’s preliminary and unaudited results as
determined by U.S. generally accepted accounting principles (GAAP),
the Company has also disclosed in this press release preliminary
non-GAAP information, and certain further adjustments thereto,
which management believes provides useful information to investors,
including: operating income, earnings before interest and taxes
(EBIT), free cash flow, and non-GAAP results including non-GAAP
income (loss) from continuing operations and non-GAAP diluted
earnings (loss) per share from continuing operations.
Reconciliations of the preliminary non-GAAP measures to the
respective and most directly comparable GAAP measures, as well as
the rationale for management’s use of non-GAAP measures, are
included below.
About CSC
Computer Sciences Corporation (CSC) is a global leader of next
generation information technology (IT) services and solutions. The
Company's mission is to enable superior returns on our clients’
technology investments through best-in-class industry solutions,
domain expertise and global scale. CSC has approximately 70,000
employees and reported revenue of $12.2 billion for the 12 months
ended April 3, 2015. For more information, visit the company's
website at www.csc.com.
All statements in this press release and in all future press
releases that do not directly and exclusively relate to historical
facts constitute “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. These
statements represent the Company’s intentions, plans, expectations
and beliefs, and are subject to risks, uncertainties and other
factors, many of which are outside the Company’s control. These
factors could cause actual results to differ materially from such
forward-looking statements. For a written description of these
factors, see the section titled “Risk Factors” in CSC’s Form 10-K
for the fiscal year ended March 28, 2014 and any updating
information in subsequent SEC filings. The Company disclaims any
intention or obligation to update these forward-looking statements
whether as a result of subsequent event or otherwise, except as
required by law.
Note: During the first quarter of
fiscal 2015, CSC adopted a new mark-to-market pension accounting
policy and changed its inter-company accounting policy. The
Company’s results from the prior year have been adjusted to reflect
these changes.
Business Segment Revenues, Operating
Income and Operating Margins
(preliminary and unaudited)
Revenues by
Segment
Quarter Ended (Amounts in
millions) April 3, 2015 March 28,
2014 % Change
% Change
inConstantCurrency
Global Business Solutions $ 980 $ 1,152 (14.9 )% (7.6 )% Global
Infrastructure Services 929 1,173 (20.8 ) (14.8 ) North American
Public Sector 1,000 1,004
(0.4 ) (0.4 ) Total Revenue $ 2,909 $ 3,329
(12.6 )% (8.0 )%
Twelve Months Ended
(Amounts in millions) April 3, 2015 March 28,
2014 % Change
% Change
inConstantCurrency
Global Business Solutions $ 4,036 $ 4,321 (6.6 )% (4.7 )% Global
Infrastructure Services 4,080 4,578 (10.9 ) (9.4 ) North American
Public Sector 4,057 4,099
(1.0 ) (1.0 ) Total Revenue $ 12,173 $ 12,998
(6.3 )% (5.2 )%
Operating Income
and Operating Margins by Segment
Quarter Ended April 3, 2015 March 28,
2014 (Amounts in millions)
OperatingIncome
OperatingMargin
OperatingIncome
OperatingMargin
Global Business Solutions $ 39 4.0 % $ 201 17.4 % Global
Infrastructure Services (49 ) (5.3 ) 92 7.8 North American Public
Sector 135 13.5 112 11.2 Corporate & Eliminations (22 )
— (20 ) — Total Operating Income $ 103 3.5 % $ 385
11.6 %
Twelve Months Ended April 3,
2015 March 28, 2014 (Amounts in millions)
OperatingIncome
OperatingMargin
OperatingIncome
OperatingMargin
Global Business Solutions $ 405 10.0 % $ 574 13.3 % Global
Infrastructure Services 162 4.0 382 8.3 North American Public
Sector 591 14.6 524 12.8 Corporate & Eliminations (70 )
— (64 ) — Total Operating Income $ 1,088 8.9 % $
1,416 10.9 %
Consolidated Statements of
Operations
(preliminary and unaudited)
Quarter Ended Twelve Months Ended (Amounts
in millions, except per-share amounts) April 3, 2015
March 28, 2014 April 3, 2015
March 28, 2014 Revenues $ 2,909 $ 3,329
$ 12,173 $ 12,998 Costs of services
(excludes depreciation and amortization and restructuring costs)
2,433 2,257 9,534 9,272 Selling, general and administrative
(excludes SEC settlement related charges and restructuring costs)
294 300 1,340 1,220 Selling, general and administrative - SEC
settlement related charges 2 — 197 — Depreciation and amortization
215 265 977 1,018 Restructuring costs 246 43 261 76 Interest
expense 36 35 148 147 Interest income (6 ) (5 ) (20 ) (16 ) Other
expense, net 6 2 12
18 Total costs and expenses 3,226
2,897 12,449 11,735
(Loss) income from continuing operations, before taxes (317
) 432 (276 ) 1,263 Income tax (benefit) expense (330 )
156 (312 ) 383 Income from
continuing operations 13 276 36 880 (Loss) income from discontinued
operations, net of taxes — (3 ) (29 )
88 Net income 13 273 7 968 Less: net income
attributable to noncontrolling interest, net of tax 4
3 15 21 Net income (loss)
attributable to CSC common stockholders $ 9 $ 270 $
(8 ) $ 947 Earnings (loss) per common share Basic:
Continuing operations $ 0.06 $ 1.87 $ 0.15 $ 5.81 Discontinued
operations — (0.02 ) (0.21 )
0.60 $ 0.06 $ 1.85 $ (0.06 ) $ 6.41
Diluted: Continuing operations $ 0.06 $ 1.83 $ 0.15 $ 5.70
Discontinued operations — (0.02 ) (0.20
) 0.58 $ 0.06 $ 1.81 $ (0.05 ) $ 6.28
Cash dividend per common share $ 0.23 $ 0.20 $ 0.92 $
0.80 Weighted average common shares outstanding for: Basic EPS
140.760 145.953 142.557 147.647 Diluted 142.812 149.251 145.780
150.761
Selected Balance Sheet Data
(preliminary and unaudited)
As of (Amounts in
millions) April 3, 2015 March 28,
2014 Assets Cash and cash equivalents $ 2,098 $ 2,443
Receivables, net 2,369 2,759 Prepaid expenses and other current
assets 438 426 Total current assets 4,905 5,628 Property and
equipment, net 1,583 2,031 Outsourcing contract costs, net 326 427
Software, net 751 650 Goodwill 1,671 1,667 Other assets 965 986
Total Assets $ 10,201 $ 11,389 Liabilities Short-term debt
and current maturities of long-term debt $ 904 $ 681 Accounts
payable 422 394 Accrued payroll and related costs 356 592 Accrued
expenses and other current liabilities 1,239 1,094 Deferred revenue
and advance contract payments 618 624 Income taxes payable and
deferred income taxes 62 77 Total current liabilities 3,601 3,462
Long-term debt, net of current maturities 1,765 2,207 Income
tax liabilities and deferred income taxes 412 557 Other long-term
liabilities 1,474 1,219 Total Equity 2,949 3,944
Total Liabilities and Equity $ 10,201 $ 11,389
Consolidated Statements of Cash
Flows
(preliminary and unaudited)
Twelve Months Ended
(Amounts in millions) April 3, 2015
March 28, 2014 Cash flows from operating activities: Net
income $ 7 $ 968 Adjustments to reconcile net income to net cash
provided by operating activities: Depreciation and amortization 977
1,018 Pension & OPEB actuarial & settlement losses (gains)
782 (259 ) Stock-based compensation 68 73 Deferred taxes (449 ) 169
Gain on dispositions (22 ) (85 ) Provision for losses on accounts
receivable 2 4 Excess tax benefit from stock based compensation (18
) (8 ) Unrealized foreign currency exchange gain (4 ) (29 )
Impairment losses and contract write-offs — 3 Cash surrender value
in excess of premiums paid (9 ) (8 ) Other non-cash charges, net 39
55 Changes in assets and liabilities, net of effects of
acquisitions and dispositions: Decrease in receivables 237 168
Increase in prepaid expenses and other current assets (36 ) (40 )
Decrease in accounts payable and accrued expenses (335 ) (549 )
Increase in accrual for SEC settlement related charges 190 —
(Decrease) increase in income taxes payable and income tax
liability (23 ) 119 Increase in advanced contract payments and
deferred revenue 11 2 Other operating activities, net 16 (41
) Net cash provided by operating activities 1,433 1,560
Cash flows from investing activities: Purchases of
property and equipment (381 ) (420 ) Payments for outsourcing
contract costs (68 ) (71 ) Payments for acquisitions, net of cash
acquired (49 ) (190 ) Proceeds from business dispositions (13 ) 248
Software purchased and developed (199 ) (197 ) Proceeds from sale
of assets 155 38 Other investing activities, net 19 26
Net cash (used in) provided by investing activities (536 )
(566 ) Cash flows from financing activities: Borrowings
under lines of credit and short-term debt — 439 Repayment of
borrowings under lines of credit (32 ) — Principal payments on
long-term debt (242 ) (492 ) Proceeds from stock options and other
common stock transactions 196 214 Excess tax benefit from stock
based compensation 18 8 Repurchase of common stock and advance
payment for accelerated share repurchase (842 ) (521 ) Dividend
payments (128 ) (119 ) Payment of contingent consideration — (98 )
Other financing activities, net (8 ) (30 ) Net cash used in
financing activities (1,038 ) (599 ) Effect of exchange rate
changes on cash and cash equivalents (204 ) (6 ) Net (decrease)
increase in cash and cash equivalents (345 ) 389 Cash and cash
equivalents at beginning of year 2,443 2,054 Cash and
cash equivalents at end of year $ 2,098 $ 2,443
Non-GAAP Financial Measures
The following tables reconcile non-GAAP financial measures
of operating income, earnings before interest and taxes (EBIT), and
free cash flow, to the respective most directly comparable
financial measure calculated and presented in accordance with GAAP.
Also presented below are the Company's non-GAAP results, which
exclude certain items that management believes are not indicative
of the Company's operating performance. CSC management believes
that these non-GAAP financial measures provide useful information
to investors regarding the Company's financial condition and
results of operations as they provide another measure of the
Company's profitability and ability to service its debt, and are
considered important measures by financial analysts covering CSC
and its peers. Management uses operating income to evaluate
financial performance and it is one of the measures used in
assessing management performance. One of the limitations associated
with the use of operating income (as compared to reported earnings)
is that it does not reflect the complete financial results of the
Company. CSC compensates for these limitations by providing a
reconciliation between operating income and income from continuing
operations, before taxes. Management uses free cash flow as one of
the factors in reviewing the overall performance of the business.
Management compensates for the limitations of this non-GAAP measure
by also reviewing the GAAP measures of operating, investing and
financing cash flows. Management uses non-GAAP income from
continuing operations and non-GAAP EPS to evaluate the Company's
results, excluding the impact of items that management believes are
not indicative of the Company's operating performance. CSC
compensates for the limitations of these non-GAAP measures by
providing a reconciliation from non-GAAP results to reported
results.
GAAP Reconciliations
Operating Income
and Adjusted Operating Income
(preliminary and unaudited) CSC defines operating income as
revenue less costs of services, segment selling, general and
administrative (G&A) expenses, depreciation and amortization
expense, and restructuring costs. Operating income excludes
corporate G&A, actuarial and settlement charges related to
CSC's pension and other post-employment benefit (OPEB) plans, and
the SEC settlement related charges and Other. Operating margin is
defined as operating income as a percentage of revenue.
Adjusted operating income is computed by excluding from operating
income the impact of the fourth quarter fiscal 2015 special
restructuring costs, and the impact of the fourth quarter fiscal
2014 reversal of the excess ServiceMesh contingent consideration
payable. Reconciliations of adjusted operating income and
operating income to income from continuing operations before taxes
are as follows:
Quarter
Ended Twelve Months Ended (Amounts in millions)
April 3, 2015 March 28, 2014 April
3, 2015 March 28, 2014 Adjusted
operating income $ 349 $ 364 $ 1,334 $ 1,395 Special restructuring
costs (246 ) — (246 ) — Reversal of contingent consideration —
21 — 21 Operating income 103 385 1,088
1,416 Corporate G&A (60 ) (66 ) (242 ) (263 ) Pension &
OPEB actuarial & settlement (losses) gains (319 ) 145 (782 )
259 SEC settlement related charges and Other (5 ) — (200 ) —
Interest expense (36 ) (35 ) (148 ) (147 ) Interest income 6 5 20
16 Other expense, net (6 ) (2 ) (12 ) (18 ) (Loss) income from
continuing operations, before taxes $ (317 ) $ 432 $ (276 )
$ 1,263 Adjusted operating margin 12.0 % 10.9 % 11.0
% 10.7 % Operating margin 3.5 % 11.6 % 8.9 % 10.9 %
Earnings Before
Interest and Taxes and Adjusted Earnings Before Interest and
Taxes
(preliminary and unaudited) Earnings before interest and
taxes (EBIT) is defined as income from continuing operations less
interest expense, interest income and income tax benefit (expense).
EBIT margin is defined as EBIT as a percentage of revenue.
Adjusted EBIT is computed by excluding from EBIT the impact of the
(i) actuarial gains (losses) and settlement charges related to
CSC's pension & other post-employment benefit (OPEB) plans,
(ii) proposed SEC settlement related charges and Other, (iii)
fourth quarter fiscal 2015 special restructuring costs, and (iv)
the fourth quarter fiscal 2014 reversal of the excess ServiceMesh
(SMI) contingent consideration payable. Adjusted EBIT margin is
computed as adjusted EBIT as a percentage of revenue. A
reconciliation of adjusted EBIT and EBIT to income from continuing
operations is as follows:
Quarter Ended Twelve Months Ended (Amounts in
millions) April 3, 2015 March 28,
2014 April 3, 2015 March 28, 2014
Adjusted EBIT $ 283 $ 296 $ 1,080
$
1,114
Pension & OPEB actuarial & settlement (losses) gains (319 )
145 (782 ) 259 SEC settlement related charges and Other (5 ) — (200
) — Special restructuring costs (246 ) — (246 ) — Reversal of
contingent consideration — 21 — 21
EBIT (287 ) 462 (148 ) 1,394 Interest expense (36 ) (35 )
(148 ) (147 ) Interest income 6 5 20 16 Income tax benefit
(expense) 330 (156 ) 312 (383 ) Income from
continuing operations $ 13 $ 276 $ 36 $ 880
Adjusted EBIT margin 9.7 % 8.9 % 8.9 % 8.6 % EBIT
margin (9.9 )% 13.9 % (1.2 )% 10.7 %
Free Cash
Flow
(preliminary and unaudited) CSC defines free cash flow as
equal to the sum of (1) operating cash flows, (2) investing cash
flows, excluding business acquisitions, dispositions and
investments (including short-term investments and purchase or sale
of available for sale securities), and (3) payments on capital
leases and other long-term asset financings. A reconciliation of
free cash flow to net cash provided by operating activities is as
follows:
Quarter Ended
Twelve Months Ended (Amounts in millions) April 3,
2015 March 28, 2014 April 3, 2015
March 28, 2014 Net cash provided by operating
activities $ 290 $ 548 $ 1,433 $ 1,560 Net cash (used in) provided
by investing activities (137 ) (189 ) (536 ) (566 ) Acquisitions,
net of cash acquired 14 — 49 190 Business dispositions — (3 ) 13
(248 ) Short-term investments — — — (5 ) Payment on capital leases
and other long-term asset financings (49 ) (68 ) (242 ) (242 ) Free
cash flow $ 118 $ 288 $ 717 $ 689
Adjusted Segment Operating Income and
Operating Margin
(preliminary and unaudited) Adjusted operating income is
computed by excluding from operating income the impact of the
fourth quarter fiscal 2015 special restructuring costs, and the
impact of the fourth quarter fiscal 2014 reversal of the excess
ServiceMesh contingent consideration payable. Reconciliations of
adjusted operating income to operating income, for the quarters and
twelve months ended April 3, 2015 and March 28, 2014, are as
follows:
Quarter Ended April 3, 2015
Special Adjusted
Adjusted Operating restructuring
operating operating
(Amounts in millions)
income costs income margin Global
Business Solutions $ 39 $ 125 $ 164 16.7 % Global Infrastructure
Services (49 ) 112 63 6.8 North American Public Sector 135 5 140
14.0 Corporate & Eliminations (22 ) 4
(18 ) — Total $ 103 $ 246 $ 349
12.0 %
Quarter Ended March 28, 2014
Reversal of Adjusted Adjusted Operating
contingent operating operating
(Amounts in millions)
income consideration income margin
Global Business Solutions $ 201 $ — $ 201 17.4 % Global
Infrastructure Services 92 (21 ) 71 6.1 North American Public
Sector 112 — 112 11.2 Corporate & Eliminations (20 )
— (20 ) — Total $ 385 $ (21 ) $
364 10.9 %
Twelve Months Ended April 3,
2015 Special Adjusted Adjusted
Operating restructuring operating
operating
(Amounts in millions)
income costs income margin Global
Business Solutions $ 405 $ 125 $ 530 13.1 % Global Infrastructure
Services 162 112 274 6.7 North American Public Sector 591 5 596
14.7 Corporate & Eliminations (70 ) 4
(66 ) — Total $ 1,088 $ 246 $ 1,334
11.0 %
Twelve Months Ended March 28,
2014 Reversal of Adjusted Adjusted
Operating contingent operating
operating
(Amounts in millions)
income consideration income margin
Global Business Solutions $ 574 $ — $ 574 13.3 % Global
Infrastructure Services 382 (21 ) 361 7.9 North American Public
Sector 524 — 524 12.8 Corporate & Eliminations (64 )
— (64 ) — Total $ 1,416 $ (21 )
$ 1,395 10.7 %
Non-GAAP Results
Non-GAAP results are financial measures
calculated by excluding certain items, which management believes
are not indicative of the Company's operating performance. A
reconciliation of non-GAAP results to reported results is as
follows:
Quarter Ended April 3, 2015
(Amounts in millions, except per-share
amounts)
As reported
Pension
&OPEBactuarial
&settlementlosses
SECSettlementrelatedcharges
&Other
Specialrestructuringcosts
Taxvaluationallowancebenefit
Non-GAAPresults
Costs of services (excludes depreciation and amortization and
restructuring costs) $ 2,433 $ (302 ) $ — $ —
$ — $ 2,131 Selling, general and
administrative (excludes SEC settlement related charges and
restructuring costs) $ 294 $ (17 ) $ (3 ) $ — $ —
$ 274 (Loss) income from continuing
operations, before taxes $ (317 ) $ (319 ) $ (5 ) $ (246 ) $ — $
253 Income tax (benefit) expense (330 ) (70 ) (2 ) (63 ) (264 ) 69
Income from continuing operations $ 13 $ (249 ) $ (3
) $ (183 ) $ 264 $ 184 Net income $ 13 $ (249
) $ (3 ) $ (183 ) $ 264 $ 184 Less: net income attributable to
noncontrolling interest, net of tax 4 — — —
— 4 Net (loss) income attributable to CSC
common stockholders $ 9 $ (249 ) $ (3 ) $ (183 ) $ 264
$ 180 Effective tax rate 104.1 % 21.9 % 40.0 %
25.6 % — % 27.3 % Basic EPS from continuing operations $
0.06 $ (1.77 ) $ (0.02 ) $ (1.30 ) $ 1.88 $ 1.28 Diluted EPS from
continuing operations $ 0.06 $ (1.74 ) $ (0.02 ) $ (1.28 ) $ 1.85 $
1.26 Weighted average common shares outstanding for: Basic
EPS 140.760 140.760 140.760 140.760 140.760 140.760 Diluted EPS
142.812 142.812 142.812 142.812 142.812 142.812
Twelve Months Ended April 3, 2015 (Amounts in
millions, except per-share amounts) As reported
Pension
&OPEBactuarial
&settlementlosses
SECSettlementrelatedcharges
&Other
Specialrestructuringcosts
Taxvaluationallowancebenefit
Non-GAAPresults
Costs of services (excludes depreciation and amortization and
restructuring costs) $ 9,534 $ (720 ) $ — $ —
$ — $ 8,814 Selling, general and
administrative (excludes SEC settlement related charges and
restructuring costs) $ 1,340 $ (62 ) $ (3 ) $ — $ —
$ 1,275 (Loss) income from continuing
operations, before taxes $ (276 ) $ (782 ) $ (200 ) $ (246 ) $ — $
952 Income tax (benefit) expense (312 ) (241 ) (3 ) (63 ) (264 )
259 Income from continuing operations $ 36 $ (541 ) $
(197 ) $ (183 ) $ 264 $ 693 Net income $ 7 $
(541 ) $ (197 ) $ (183 ) $ 264 $ 664 Less: net income (loss)
attributable to noncontrolling interest, net of tax 15 (2 )
— — — 17 Net (loss) income attributable
to CSC common stockholders $ (8 ) $ (539 ) $ (197 ) $ (183 ) $ 264
$ 647 Effective tax rate 113.0 % 30.8 % 1.5 %
25.6 % — % 27.2 % Basic EPS from continuing operations $
0.15 $ (3.78 ) $ (1.38 ) $ (1.28 ) $ 1.85 $ 4.74 Diluted EPS from
continuing operations $ 0.15 $ (3.70 ) $ (1.35 ) $ (1.26 ) $ 1.81 $
4.64 Weighted average common shares outstanding for: Basic
EPS 142.557 142.557 142.557 142.557 142.557 142.557 Diluted EPS
145.780 145.780 145.780 145.780 145.780 145.780
Quarter Ended March 28, 2014 (Amounts in millions,
except per-share amounts)
As reported
Pension andOPEB
actuarialgains
Reversal
ofcontingentconsideration
Non-GAAPresults
Costs of services (excludes depreciation and amortization and
restructuring costs) $ 2,257 $ 132 $ — $ 2,389
Selling, general and administrative (excludes SEC
settlement related charges and restructuring costs) $ 300 $
13 $ 21 $ 334 Income from continuing
operations, before taxes $ 432 $ 145 $ 21 $ 266 Income tax expense
156 64 — 92 Income from continuing
operations $ 276 $ 81 $ 21 $ 174
Net income $ 273 $ 81 $ 21 $ 171 Less: net income attributable to
noncontrolling interest, net of tax 3 — — 3
Net Income attributable to CSC common stockholders $ 270
$ 81 $ 21 $ 168 Effective tax
rate 36.1 % 44.1 % — % 34.6 % Basic EPS from continuing
operations $ 1.87 $ 0.55 $ 0.14 $ 1.17 Diluted EPS from continuing
operations $ 1.83 $ 0.54 $ 0.14 $ 1.15 Weighted average
common shares outstanding for: Basic EPS 145.953 145.953 145.953
145.953 Diluted EPS 149.251 149.251 149.251 149.251
Twelve Months Ended March 28, 2014 (Amounts in
millions, except per-share amounts)
As reported
Pension andOPEB
actuarialgains
Reversal
ofcontingentconsideration
Non-GAAPresults
Costs of services (excludes depreciation and amortization and
restructuring costs) $ 9,272 $ 212 $ — $ 9,484
Selling, general and administrative (excludes SEC
settlement related charges and restructuring costs) $ 1,220
$ 47 $ 21 $ 1,288 Income from
continuing operations, before taxes $ 1,263 $ 259 $ 21 $ 983 Income
tax expense 383 64 — 319 Income from
continuing operations $ 880 $ 195 $ 21 $ 664
Net income $ 968 $ 195 $ 21 $ 752 Less: net income
attributable to noncontrolling interest, net of tax 21 —
— 21 Net income attributable to CSC common
stockholders $ 947 $ 195 $ 21 $ 731
Effective tax rate 30.3 % 24.7 % — % 32.5 % Basic EPS
from continuing operations $ 5.81 $ 1.32 $ 0.14 $ 4.35 Diluted EPS
from continuing operations $ 5.70 $ 1.29 $ 0.14 $ 4.27
Weighted average common shares outstanding for: Basic EPS 147.647
147.647 147.647 147.647 Diluted EPS 150.761 150.761 150.761 150.761
Click here to subscribe to Mobile Alerts for CSC.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150519007090/en/
Computer Sciences Corporation (CSC)Corporate Media
RelationsRichard Adamonis, 862-228-3481radamonis@csc.comorInvestor
RelationsGeorge Price, 703-641-3842gprice4@csc.com
Computer Sciences (NYSE:CSC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Computer Sciences (NYSE:CSC)
Historical Stock Chart
From Apr 2023 to Apr 2024