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Exhibit 99.1

Accenture Reports First-Quarter Fiscal 2010 Results

— Company delivers revenues of $5.38 billion, operating margin of 13.9% and EPS of $0.67 —

— Bookings are $5.53 billion, with consulting bookings of $3.51 billion —

— Company updates EPS outlook to range of $2.67-$2.75 —

NEW YORK; Dec. 17, 2009 — Accenture (NYSE: ACN) reported financial results for the first quarter of fiscal 2010, ended Nov. 30, 2009, with net revenues of $5.38 billion, a decrease of 11 percent in U.S. dollars and 12 percent in local currency from the same period last year and within the company’s guided range. Diluted earnings per share were $0.67.

Operating income was $746 million, and operating margin was 13.9 percent.

New bookings for the quarter were $5.53 billion, with consulting bookings of $3.51 billion and outsourcing bookings of $2.02 billion.

William D. Green, Accenture’s chairman & CEO, said, “We continued to drive our business with discipline and a focus on execution, as well as with an eye to the future. We generated revenue within our expected range, delivered strong operating margin, ended the quarter with a cash balance of $4 billion after paying our annual dividend, and maintained our solid balance sheet.

“We are seeing building momentum in key areas of our business. Consulting bookings of $3.5 billion, growing pipelines and broadly heightened levels of activity are encouraging signs. We have mobilized to capture this opportunity. The demand for high performance from our clients is accelerating.”

Financial Review

Revenues before reimbursements (“net revenues”) for the first quarter of fiscal 2010 were $5.38 billion, compared with $6.02 billion in the first quarter of fiscal 2009, a decrease of 11 percent in U.S. dollars and 12 percent in local currency. Net revenues for the first quarter of fiscal 2010 reflect a foreign-exchange impact of positive 1 percent.

 

  ¡  

Consulting net revenues for the quarter were $3.12 billion, a decrease of 15 percent in U.S. dollars and 16 percent in local currency from the first quarter of fiscal 2009.

 

  ¡  

Outsourcing net revenues were $2.26 billion, a decrease of 4 percent in U.S. dollars and 5 percent in local currency from the first quarter of fiscal 2009.


Diluted EPS for the first quarter of fiscal 2010 were $0.67, a decrease of $0.07 from the first quarter of fiscal 2009, broken down as:

 

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$0.07 decrease from lower revenue and operating income in local currency; and

  ¡  

$0.04 decrease from a higher effective income tax rate compared with the rate in the first quarter last year;

    offset by:

 

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$0.02 increase from a lower share count;

  ¡  

$0.01 increase from higher non-operating income; and

  ¡  

$0.01 increase from favorable foreign-exchange rates compared with the first quarter of fiscal 2009.

Operating income for the first quarter was $746 million, or 13.9 percent of net revenues, compared with $815 million, or 13.5 percent of net revenues, for the first quarter of fiscal 2009. Gross margin (gross profit as a percentage of net revenues) for the first quarter was 33.1 percent, compared with 31.4 percent for the first quarter last year. Selling, general and administrative (SG&A) expenses for the first quarter were $1.03 billion, or 19.2 percent of net revenues, compared with $1.07 billion, or 17.8 percent of net revenues, for the first quarter last year. SG&A expenses in the first quarter last year included a $72 million provision for bad debt. The change in gross margin and in SG&A as a percentage of net revenues compared with the first quarter last year was primarily due to a change related to the recent implementation of the company’s sales-effectiveness model. This reclassification had no overall impact on operating expense or operating margin.

The company’s effective tax rate for the first quarter was 30.5 percent, compared with 26.6 percent for the first quarter last year, which was lower primarily as a result of final determinations of prior-year tax liabilities recorded in that quarter.

Net income before noncontrolling interests (previously “Income before minority interest”) for the first quarter was $525 million, compared with $593 million for the same period of fiscal 2009, a decrease of 12 percent.

Operating cash flow for the first quarter was $219 million, and property and equipment additions were $35 million. Free cash flow, defined as operating cash flow net of property and equipment additions, was $184 million. For the same period last year, operating cash flow was $468 million; property and equipment additions were $72 million; and free cash flow was $396 million. The reduction in free cash flow compared with the first quarter last year was driven primarily by an increase in days services outstanding from Aug. 31, 2009.

Days services outstanding, or DSOs, were 32 at Nov. 30, 2009, compared with 28 at Aug. 31, 2009, and 36 at Nov. 30, 2008.

Accenture’s total cash balance at Nov. 30, 2009 was $4.00 billion, compared with $4.54 billion at Aug. 31, 2009. The company paid a cash dividend to shareholders in November totaling more than $550 million.

Utilization for the first quarter of fiscal 2010 was 88 percent, compared with 83 percent for the first quarter last year. Attrition for the quarter was 12 percent, compared with 13 percent for the same period last year.

 

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New Bookings

New bookings for the first quarter were $5.53 billion. This reflects a positive 3 percent foreign-currency impact when compared to new bookings in the first quarter last year.

 

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Consulting new bookings were $3.51 billion, or 64 percent of total new bookings.

 

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Outsourcing new bookings were $2.02 billion, or 36 percent of total new bookings.

Net Revenues by Operating Group

Accenture’s business continues to be affected by global economic conditions, with all operating groups except Health & Public Service experiencing local-currency revenue declines during the first quarter. Accenture’s strong results in the first quarter last fiscal year — which included local-currency revenue growth of 9 percent — were achieved prior to the company feeling the effects, beginning in January, of the global economic downturn.

Net revenues by operating group for the first quarter were as follows:

 

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Communications & High Tech: $1,159 million, compared with $1,364 million for the first quarter of fiscal 2009, a decrease of 15 percent in U.S. dollars and 17 percent in local currency.

 

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Financial Services: $1,104 million, compared with $1,238 million for the same period last year, a decrease of 11 percent in U.S. dollars and 12 percent in local currency.

 

  ¡  

Health & Public Service: $947 million, compared with $943 million* for the same period last year, flat in both U.S. dollars and local currency.

 

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Products: $1,204 million, compared with $1,385 million* for the first quarter last year, a decrease of 13 percent in U.S. dollars and 14 percent in local currency.

 

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Resources: $964 million, compared with $1,079 million for the same period of fiscal 2009, a decrease of 11 percent in U.S. dollars and 12 percent in local currency.

*On Sept. 1, 2009, the Company formed the Health & Public Service operating group by combining various healthcare-related components of its Products operating group with its Public Service operating group. Prior-period amounts have been reclassified to conform to the current-period presentation.

Net Revenues by Geographic Region

Net revenues by geographic region for the first quarter were as follows:

 

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Americas: $2,229 million, compared with $2,576 million for the first quarter of fiscal 2009, a decrease of 13 percent in U.S. dollars and 14 percent in local currency.

 

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Europe, Middle East and Africa (EMEA): $2,550 million, compared with $2,873 million for the first quarter of fiscal 2009, a decrease of 11 percent in U.S. dollars and 12 percent in local currency.

 

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Asia Pacific: $603 million, compared with $570 million for the year-ago period, an increase of 6 percent in U.S. dollars and a decrease of 2 percent in local currency.

 

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Share Repurchase Activity

During the first quarter of fiscal 2010, Accenture repurchased or redeemed 11.8 million shares for a total of $451 million, including 250,000 shares repurchased in the open market. Accenture’s total remaining share repurchase authority at Nov. 30, 2009, was approximately $4.5 billion.

At Nov. 30, 2009, Accenture had approximately 730 million total shares outstanding, including 632 million Accenture plc Class A ordinary shares and 98 million Accenture SCA Class I common shares and Accenture Canada Holding, Inc. exchangeable shares.

Dividend

On Nov. 16, 2009, a cash dividend of $0.75 per share was paid on Accenture plc Class A ordinary shares to shareholders of record at the close of business on Oct. 16, 2009. On Nov. 16, 2009, a cash dividend of $0.75 per share was also paid on Accenture SCA Class I common shares to shareholders of record at the close of business on Oct. 13, 2009.

As previously announced, the company plans to declare and pay cash dividends on a semi-annual basis beginning in the third quarter of fiscal 2010.

Business Outlook

Second Quarter Fiscal 2010

Accenture expects net revenues for the second quarter of fiscal 2010 to be in the range of $5.1 billion to $5.3 billion. This range assumes a foreign-exchange impact of positive 7 percent compared with the second quarter of fiscal 2009.

Full Fiscal Year 2010

The company’s revised business outlook for the full fiscal year assumes a foreign-exchange impact of positive 5 percent compared with fiscal 2009. The company’s previous business outlook for the year assumed a foreign-exchange impact of positive 4 percent.

Accenture continues to target new bookings for fiscal 2010 in the range of $23 billion to $26 billion.

For the full fiscal year 2010, Accenture continues to expect net revenue growth to be in the range of negative 3 percent to positive 1 percent in local currency. The company has increased its outlook for diluted EPS for the full fiscal year by $0.03, reflecting the updated foreign-currency assumption, and now expects diluted EPS to be in the range of $2.67 to $2.75. Accenture continues to expect operating margin for the full fiscal year to be 13.4 percent.

The company continues to expect operating cash flow to be $2.39 billion to $2.59 billion; property and equipment additions to be $290 million; and free cash flow to be in the range of $2.1 billion to $2.3 billion. The company also continues to expect the annual effective tax rate to be in the range of 30 percent to 32 percent.

 

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Conference Call and Webcast Details

Accenture will host a conference call at 4:30 p.m. EST today to discuss its first-quarter fiscal 2010 financial results. To participate, please dial +1 (800) 288-8960 [+1 (612) 332-0530 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 7:00 p.m. EST on Thursday, Dec. 17, and continuing until Wednesday, March 24, 2010. 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, March 24, 2010. 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 120395 from 7:00 p.m. EST Thursday, Dec. 17 through Wednesday, March 24, 2010.

About Accenture

Accenture is a global management consulting, technology services and outsourcing company, with more than 176,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.58 billion for the fiscal year ended Aug. 31, 2009. Its home page is www.accenture.com.

Non-GAAP Financial Information

This press 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. Accenture’s management believes providing investors with this information gives additional insights into Accenture’s results of operations. While Accenture’s management believes that these non-GAAP financial measures 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. 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: our results of operations could be adversely affected by economic and political conditions and the effects of these conditions on our clients’ businesses and levels of business activity; our results of operations could be negatively affected if we cannot expand and develop our services and solutions in response to changes in technology and client demand; the consulting, systems integration and technology and outsourcing markets are highly competitive and we might not be able to compete effectively; our work with government clients exposes us to additional risks in the government contracting environment; clients may not be satisfied with our services; our results of operations could be adversely affected if our clients terminate their contracts with us; our outsourcing services subject us to operational and financial risk; our results of operations may be adversely affected by the type and level of technology spending by our clients; our profitability may suffer if we are not able to maintain favorable pricing rates and utilization rates; our business could be negatively affected by legal liability that results from our providing solutions or services; our profitability may suffer if we cannot anticipate the cost and complexity of performing our work or if we are not able to control our costs; our global operations are subject to complex risks, some of which might be beyond our control;

 

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our business and financial results may be adversely affected if we are unable to keep our supply of skills and resources in balance with client demand; liabilities could arise if our subcontractors or other third parties cannot deliver their project contributions on time or at all; legislative or regulatory action could materially and adversely affect us; we may be subject to criticism and negative publicity related to our incorporation in Ireland; we might be unable to achieve our business objectives if we are unable to manage the organizational challenges associated with our size; consolidation in the industries that we serve could adversely affect our business; our ability to attract and retain business may depend on our reputation in the marketplace; our share price could fluctuate due to numerous factors, including variability in revenues, operating results and profitability; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in our most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.

###

Contact:

Roxanne Taylor

Accenture

+1 (917) 452 5106

roxanne.taylor@accenture.com

 

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ACCENTURE PLC

CONSOLIDATED INCOME STATEMENTS

(In thousands of U.S. dollars, except share and per share amounts)

(Unaudited)

 

     For the Three Months Ended November 30,  
     2009     % of Net
Revenues
    2008     % of Net
Revenues
 

REVENUES:

        

Revenues before reimbursements (“Net revenues”)

   $ 5,382,532      100   $ 6,019,497      100

Reimbursements

     365,155          451,111     
                    

Revenues

     5,747,687          6,470,608     

OPERATING EXPENSES:

        

Cost of services:

        

Cost of services before reimbursable expenses

     3,598,578      66.9     4,131,689      68.6

Reimbursable expenses

     365,155          451,111     
                    

Cost of services

     3,963,733          4,582,800     

Sales and marketing

     621,860      11.6     563,192        9.4

General and administrative costs

     412,121        7.7     506,739        8.4

Reorganization costs, net

     3,565          3,105     
                    

Total operating expenses

     5,001,279          5,655,836     
                    

OPERATING INCOME

     746,408      13.9     814,772      13.5

Gain on investments, net

     334          1,360     

Interest income

     6,945          22,196     

Interest expense

     (4,481       (3,400  

Other income (expense), net

     5,899          (26,407  
                    

INCOME BEFORE INCOME TAXES

     755,105      14.0     808,521      13.4

Provision for income taxes

     230,307          215,288     
                    

NET INCOME BEFORE NONCONTROLLING INTERESTS

     524,798        9.8     593,233        9.9

Net income attributable to noncontrolling interests in Accenture SCA and Accenture Canada Holdings Inc.

     (73,981       (108,133  

Net income attributable to noncontrolling interests – other (1)

     (6,000       (5,234  
                    

NET INCOME ATTRIBUTABLE TO ACCENTURE PLC

   $ 444,817        8.3   $ 479,866        8.0
                    

CALCULATION OF EARNINGS PER SHARE:

        

Net income attributable to Accenture plc

   $ 444,817        $ 479,866     

Net income attributable to noncontrolling interests in Accenture SCA and Accenture Canada Holdings Inc. (2)

     73,981          108,133     
                    

Net income for diluted earnings per share calculation

   $ 518,798        $ 587,999     
                    

EARNINGS PER SHARE:

        

- Basic

   $ 0.70        $ 0.77     

- Diluted

   $ 0.67        $ 0.74     

WEIGHTED AVERAGE SHARES:

        

- Basic

     631,527,053          622,243,687     

- Diluted (3)

     773,696,423          797,586,038     

Cash dividends per share

   $ 0.75        $ 0.50     

 

(1) Comprised primarily of noncontrolling interest attributable to the noncontrolling shareholders of Avanade, Inc.
(2) Diluted earnings per share assumes the redemption and exchange of all Accenture SCA Class I common shares and Accenture Canada Holdings Inc. exchangeable shares, respectively, for Accenture plc Class A ordinary shares on a one-for-one basis.
(3) Diluted weighted average Accenture plc Class A ordinary shares in fiscal 2009 have been restated to reflect the impact of an immaterial number of additional restricted share units issued to holders of restricted share units in connection with the payment of cash dividends.


ACCENTURE PLC

SUMMARY OF REVENUES

(In thousands of U.S. dollars)

(Unaudited)

 

     For the Three Months Ended November 30,    Percent
(Decrease)
Increase
   Percent
Decrease
Local
             2009                    2008            US$    Currency

OPERATING GROUPS

           

Communications & High Tech

   $ 1,159,313    $ 1,363,818    (15)%    (17)%

Financial Services

     1,104,037      1,238,078    (11)%    (12)%

Health & Public Service (1)

     946,512      943,334      0 %    0 %

Products (1)

     1,204,060      1,384,962    (13)%    (14)%

Resources

     964,163      1,079,228    (11)%    (12)%

Other

     4,447      10,077      n/m        n/m  
                   

TOTAL Net Revenues

     5,382,532      6,019,497    (11)%    (12)%

Reimbursements

     365,155      451,111    (19)%   
                   

TOTAL REVENUES

   $ 5,747,687    $ 6,470,608    (11)%   
                   

GEOGRAPHY

           

Americas

   $ 2,229,064    $ 2,576,378    (13)%    (14)%

EMEA

     2,550,372      2,873,086    (11)%    (12)%

Asia Pacific

     603,096      570,033      6 %    (2)%
                   

TOTAL Net Revenues

   $ 5,382,532    $ 6,019,497    (11)%    (12)%
                   

TYPE OF WORK

           

Consulting

   $ 3,120,239    $ 3,657,175    (15)%    (16)%

Outsourcing

     2,262,293      2,362,322    (4)%    (5)%
                   

TOTAL Net Revenues

   $ 5,382,532    $ 6,019,497    (11)%    (12)%
                   

 

n/m = not meaningful

OPERATING INCOME BY OPERATING GROUP (OG)

 

     For the Three Months Ended November 30,      
     2009   2008      
OPERATING GROUPS    Operating
Income
   Operating
Margin
  Operating
Income
   Operating
Margin
  (Decrease)
Increase
 

Communications & High Tech

   $ 144,380       12%   $ 179,156       13%   $ (34,776

Financial Services

     194,867       18%     157,239       13%     37,628   

Health & Public Service (1)

     134,962       14%     126,447       13%     8,515   

Products (1)

     116,034       10%     189,668       14%     (73,634

Resources

     156,165       16%     162,262       15%     (6,097
                          

Total

   $ 746,408    13.9%   $ 814,772    13.5%   $ (68,364
                          

 

(1) On September 1, 2009, the Company formed the Health & Public Service operating group by combining various healthcare-related components of its Products operating group with its Public Service operating group. Prior-period amounts have been reclassified to conform to the current-period presentation.


ACCENTURE PLC

CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

 

     November 30, 2009    August 31, 2009
     (Unaudited)     

ASSETS

     

CURRENT ASSETS:

     

Cash and cash equivalents

   $ 4,000,063    $ 4,541,662

Short-term investments

     5,056      7,904

Receivables from clients, net

     2,503,615      2,251,341

Unbilled services, net

     1,291,199      1,110,444

Other current assets

     1,129,378      1,079,163
             

Total current assets

     8,929,311      8,990,514
             

NON-CURRENT ASSETS:

     

Unbilled services, net

     66,667      94,496

Investments

     31,250      29,011

Property and equipment, net

     685,052      701,144

Other non-current assets

     2,472,539      2,440,569
             

Total non-current assets

     3,255,508      3,265,220
             

TOTAL ASSETS

   $ 12,184,819    $ 12,255,734
             

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

CURRENT LIABILITIES:

     

Current portion of long-term debt and bank borrowings

   $ 1,734    $ 594

Accounts payable

     689,769      717,379

Deferred revenues

     1,747,083      1,725,179

Accrued payroll and related benefits

     2,425,854      2,423,883

Other accrued liabilities

     1,312,729      1,371,924
             

Total current liabilities

     6,177,169      6,238,959
             

NON-CURRENT LIABILITIES:

     

Long-term debt

     855      361

Other non-current liabilities

     2,692,918      2,630,208
             

Total non-current liabilities

     2,693,773      2,630,569
             

TOTAL ACCENTURE PLC SHAREHOLDERS’ EQUITY

     2,809,267      2,835,221

NONCONTROLLING INTERESTS

     504,610      550,985
             

TOTAL SHAREHOLDERS’ EQUITY

     3,313,877      3,386,206
             

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

   $ 12,184,819    $ 12,255,734
             


ACCENTURE PLC

CONSOLIDATED CASH FLOWS STATEMENTS

(In thousands of U.S. dollars)

(Unaudited)

 

     For the Three Months Ended November 30,  
             2009                     2008          

CASH FLOWS FROM OPERATING ACTIVITIES:

    

Net income attributable to Accenture plc

   $ 444,817      $ 479,866   

Depreciation, amortization and asset impairments

     114,898        119,563   

Share-based compensation expense

     98,605        87,123   

Noncontrolling interests

     79,981        113,367   

Change in assets and liabilities/other, net

     (519,190     (331,787
                

Net cash provided by operating activities

     219,111        468,132   
                

CASH FLOWS FROM INVESTING ACTIVITIES:

    

Purchases of property and equipment

     (34,817     (71,876

Purchases of businesses and investments, net of cash acquired

     2,177        (1,307

Other investing, net

     3,280        13,410   
                

Net cash used in investing activities

     (29,360     (59,773
                

CASH FLOWS FROM FINANCING ACTIVITIES:

    

Proceeds from issuance of ordinary shares

     151,281        131,597   

Purchases of shares

     (451,270     (689,952

Cash dividends paid

     (551,442     (378,446

Other financing, net

     19,718        8,881   
                

Net cash used in financing activities

     (831,713     (927,920

Effect of exchange rate changes on cash and cash equivalents

     100,363        (300,238
                

NET DECREASE IN CASH AND CASH EQUIVALENTS

     (541,599     (819,799

CASH AND CASH EQUIVALENTS, beginning of period

     4,541,662        3,602,760   
                

CASH AND CASH EQUIVALENTS, end of period

   $ 4,000,063      $ 2,782,961