Amdocs Limited (NASDAQ: DOX) today reported operating results for
the three months ended September 30, 2019.
“We are pleased to report a strong finish to our
fiscal year 2019. Q4 revenue was in line with the midpoint of our
guidance on a constant currency basis and was driven by stable
trends in North America, solid year-over-year growth in Rest of
World and our best quarter in more than a decade in Europe.
Profitability was stable and cash collections were healthy as we
met key milestones relating to our customer project activity. As
such, we exceeded our fiscal 2019 target for normalized free cash
flow of $600 million and delivered full year non-GAAP earnings per
share growth of 6.9%, which is consistent with the high end of the
original guidance range of 3% to 7% that we provided last
November,” said Shuky Sheffer, president and chief executive
officer of Amdocs Management Limited.
Sheffer continued, “Today, we are excited to
announce a multi-year agreement that extends our collaboration with
AT&T to modernize and upgrade AT&T’s digital business
support systems, as 5G and the cloud will lead to new business and
consumer applications. In addition to customer experience and
digital enablement programs, our alliance with AT&T will be
expanded to include activities in strategic areas such as data
analytics and security. We are very proud of our deep relationship
spanning many decades with AT&T and we look forward to
strengthening this relationship as the communications and media
industry continues to innovate at an unprecedented pace.”
Sheffer concluded, “We begin fiscal 2020 with
record 12-month backlog, which is up roughly 4% from a year ago,
and we have further improved our strong visibility in the first
quarter with the signing of a large IT transformation project at
Vodafone Germany. Overall, we expect to deliver full year non-GAAP
diluted earnings per share growth of 3.0% to 7.0% in fiscal 2020.
Moreover, we plan to further enhance the total return we provide to
shareholders by raising our quarterly dividend for the seventh
consecutive year, subject to shareholders approval at the annual
meeting in January 2020”.
Revenue
Revenue for the fourth fiscal quarter ended
September 30, 2019 was $1,030 million, up $5 million sequentially
from the third fiscal quarter of 2019 and up 2.8% as reported and
3.6% in constant currency as compared to last year’s fourth fiscal
quarter. Revenue for the fourth fiscal quarter of 2019 includes a
negative impact from foreign currency movements of approximately $3
million relative to the third quarter of fiscal 2019. Revenue was
at the midpoint of Amdocs’ guidance, adjusting for the negative
impact of approximately $5 million of foreign currency movements
relative to guidance.
Revenue for the fiscal year ended September 30,
2019, was $4.1 billion, up 2.8% from the last fiscal year and
within Amdocs’ guidance range for growth of 2.4% to 3.4%
year-over-year as reported. Adjusting for the negative impact of
foreign currency movements, revenue was up 4.1% from the last
fiscal year and within Amdocs’ guidance range for growth of 3.6% to
4.6% year-over-year.
Net Income and Earnings Per
Share
The Company's GAAP net income for the fourth
quarter of fiscal 2019 was $122.0 million, or $0.90 per diluted
share, compared to GAAP net income of $44.3 million, or $0.31 per
diluted share, in the prior fiscal year’s fourth quarter. Net
income on a non-GAAP basis was $147.1 million, or $1.08 per diluted
share, compared to non-GAAP net income of $140.2 million, or $0.99
per diluted share, in the fourth quarter of fiscal 2018. Non-GAAP
net income excludes amortization of purchased intangible assets and
other acquisition-related costs, changes in certain acquisitions
related liabilities measured at fair value, equity-based
compensation expenses, and other, net of related tax effects, in
the fourth quarter of fiscal 2019, and amortization of purchased
intangible assets and other acquisition-related costs, changes in
certain acquisitions related liabilities measured at fair value,
equity-based compensation expenses, and non-recurring charges, net
of related tax effects, in the fourth quarter of fiscal 2018.
The Company's GAAP net income in fiscal 2019 was
$479.4 million, or $3.47 per diluted share, compared to GAAP net
income of $354.4 million, or $2.47 per diluted share, in fiscal
2018. Fiscal 2019 net income on a non-GAAP basis was $595.1
million, or $4.31 per diluted share, compared to non-GAAP net
income of $579.6 million, or $4.03 per diluted share, in fiscal
2018.
For further details of reconciliation of
selected financial metrics from GAAP to Non-GAAP, please refer to
the tables below.
Returning Cash to
Shareholders
- Quarterly Cash Dividend Program: On November
12, 2019, the Board approved the Company’s next quarterly cash
dividend payment of $0.285 per share and set December 31, 2019 as
the record date for determining the shareholders entitled to
receive the dividend, which will be payable on January 24, 2020.
The Board also approved a 15% increase in the Company’s quarterly
cash dividend payment to $0.3275 per share, which is anticipated to
be first paid in April 2020, provided that the increase is approved
by shareholders at the January 2020 annual general meeting of
shareholders.
- Share Repurchase Activity: Repurchased $90
million of ordinary shares during the fourth quarter of fiscal
2019. The board of directors has approved a share repurchase plan
authorizing the repurchase of up to $800 million of ordinary shares
at the company’s discretion; this plan has no expiration date and
is in addition to the current authorization, which, as of September
30, 2019, provided for up to $239 million of remaining repurchase
authority.
Twelve-month
BacklogTwelve-month backlog, which includes anticipated
revenue related to contracts, estimated revenue from managed
services contracts, letters of intent, maintenance and estimated
on-going support activities, was $3.49 billion at the end of the
fourth quarter of fiscal 2019, up $90 million from the end of the
prior quarter.
First Quarter Fiscal 2020
Outlook
- Revenue of approximately $1,015-$1,055 million, assuming
approximately $1 million sequential negative impact from foreign
currency fluctuations as compared to the fourth quarter of fiscal
2019, including a full quarter revenue contribution from the
acquisition of TTS Wireless which closed in early August
- GAAP diluted EPS of approximately $0.79-$0.87. The impact of
the acquisition of TTS Wireless on GAAP diluted EPS will not be
known until after Amdocs completes the purchase price
allocation
- Non-GAAP diluted EPS of approximately $1.02-$1.08, excluding
amortization of purchased intangible assets and other
acquisition-related costs, changes in certain acquisitions related
liabilities measured at fair value, and approximately $0.06-$0.08
per share of equity-based compensation expense, net of related tax
effects. The impact of the acquisition of TTS Wireless on Amdocs’
non-GAAP diluted earnings per share is expected to be neutral in
the first quarter of fiscal 2020
Full Year Fiscal 2020
Outlook
- Revenue growth of 1.5%-5.5% year-over-year as reported
- Revenue growth of 2.0%-6.0% year-over-year on a constant
currency basis
- Full year fiscal 2020 revenue guidance incorporates just over
1% of growth from the acquisition of TTS Wireless, and an expected
negative impact from foreign currency fluctuations of about 0.5%
year-over-year
- GAAP diluted earnings per share growth of roughly 5.0%-12.0%
year-over-year. The impact of the acquisition of TTS Wireless on
GAAP diluted EPS will not be known until after Amdocs completes the
purchase price allocation
- Non-GAAP diluted earnings per share growth of roughly 3.0%-7.0%
year-over-year, excluding amortization of purchased intangible
assets and other acquisition-related costs, changes in certain
acquisitions related liabilities measured at fair value, and
approximately $0.24-$0.32 per share of equity-based compensation
expense, net of related tax effects. The impact of the acquisition
of TTS Wireless on Amdocs’ non-GAAP diluted earnings per share is
expected to be neutral in fiscal year 2020
- Free cash flow of approximately $350 million, comprised of cash
flow from operations, less net capital expenditures and other, and
normalized free cash flow of approximately $480 million
Our first fiscal quarter 2020 and full year
fiscal 2020 outlook takes into consideration the Company’s
expectations regarding macro and industry specific risks and
various uncertainties and certain assumptions that we will discuss
on our earnings conference call. However, Amdocs notes market
dynamics continue to shift rapidly and that it cannot predict all
possible outcomes, including those resulting from T-Mobile’s
proposed merger with Sprint, or from other current and potential
customer consolidation activity.
Conference Call DetailsAmdocs
will host a conference call on November 12, 2019 at 5:00 p.m.
Eastern Time to discuss the Company's fourth quarter of fiscal 2019
results. To participate, please dial +1 (844) 513-7152, or +1 (508)
637-5600 outside the United States, approximately 15 minutes before
the call and enter passcode 7084814. The call will also be carried
live on the Internet via the Amdocs website, www.amdocs.com.
Non-GAAP Financial MeasuresThis
release includes non-GAAP diluted earnings per share and other
non-GAAP financial measures, including free cash flow and
normalized free cash flow, non-GAAP cost of revenue, non-GAAP
research and development, non-GAAP selling, general and
administrative, non-GAAP operating income, non-GAAP operating
margin, non-GAAP interest and other expenses, net, non-GAAP income
taxes, non-GAAP effective tax rate, non-GAAP net income and
non-GAAP diluted earnings per share growth. These non-GAAP measures
exclude the following items:
- amortization of purchased intangible assets and other
acquisition-related costs;
- changes in certain acquisition-related liabilities measured at
fair value;
- non-recurring and unusual charges;
- equity-based compensation expense;
- other; and
- tax effects related to the above.
Free cash flow equals cash generated by
operating activities less net capital expenditures and other, and
normalized free cash flow is adjusted to exclude net capital
expenditures related to the new campus development, payments for
previously expensed restructuring charges, payments for legal
dispute settlement, and payments of acquisition related
liabilities. These non-GAAP financial measures are not in
accordance with, or an alternative for, generally accepted
accounting principles and may be different from non-GAAP financial
measures used by other companies. In addition, these non-GAAP
financial measures are not based on any comprehensive set of
accounting rules or principles. Amdocs believes that non-GAAP
financial measures have limitations in that they do not reflect all
of the amounts associated with Amdocs’ results of operations as
determined in accordance with GAAP and that these measures should
only be used to evaluate Amdocs’ results of operations in
conjunction with the corresponding GAAP measures.
Amdocs believes that the presentation of
non-GAAP diluted earnings per share and other financial measures,
including free cash flow and normalized free cash flow, non-GAAP
cost of revenue, non-GAAP research and development, non-GAAP
selling, general and administrative, non-GAAP operating income,
non-GAAP operating margin, non-GAAP interest and other expenses,
net, non-GAAP income taxes, non-GAAP effective tax rate,
non-GAAP net income and non-GAAP diluted earnings per share growth
when shown in conjunction with the corresponding GAAP measures,
provides useful information to investors and management regarding
financial and business trends relating to its financial condition
and results of operations, as well as the net amount of cash
generated by its business operations after taking into account
capital spending required to maintain or expand the business.
For its internal budgeting process and in
monitoring the results of the business, Amdocs’ management uses
financial statements that do not include amortization of purchased
intangible assets and other acquisition-related costs, changes in
certain acquisition-related liabilities measured at fair value,
non-recurring and unusual charges, equity-based compensation
expense, other and related tax effects. Amdocs’ management also
uses the foregoing non-GAAP financial measures, in addition to the
corresponding GAAP measures, in reviewing the financial results of
Amdocs. In addition, Amdocs believes that significant groups of
investors exclude these items in reviewing its results and those of
its competitors, because the amounts of the items between companies
can vary greatly depending on the assumptions used by an individual
company in determining the amounts of the items.
Amdocs further believes that, where the
adjustments used in calculating non-GAAP diluted earnings per share
are based on specific, identified amounts that impact different
line items in the Consolidated Statements of Income (including cost
of revenue, research and development, selling, general and
administrative, operating income, interest and other expenses, net,
income taxes and net income), it is useful to investors to
understand how these specific line items in the Consolidated
Statements of Income are affected by these adjustments. Please
refer to the Reconciliation of Selected Financial Metrics from GAAP
to Non-GAAP tables below.
Supporting Resources
- Keep up with Amdocs news by visiting the Company’s website
- Subscribe to Amdocs’ RSS Feed and follow us on Twitter,
Facebook, LinkedIn and YouTube
About AmdocsAmdocs is a leading
software and services provider to communications and media
companies of all sizes, accelerating the industry’s dynamic and
continuous digital transformation. With a rich set of innovative
solutions, long-term business relationships with 350 communications
and media providers, and technology and distribution ties to 600
content creators, Amdocs delivers business improvements to drive
growth. Amdocs and its 25,000 employees serve customers in over 85
countries. Listed on the NASDAQ Global Select Market, Amdocs had
revenue of $4.1 billion in fiscal 2019.
For more information, visit Amdocs at
www.amdocs.com.
This press release includes information that
constitutes forward-looking statements made pursuant to the safe
harbor provision of the Private Securities Litigation Reform Act of
1995, including statements about Amdocs’ growth and business
results in future quarters. Although we believe the expectations
reflected in such forward-looking statements are based upon
reasonable assumptions, we can give no assurance that our
expectations will be obtained or that any deviations will not be
material. Such statements involve risks and uncertainties that may
cause future results to differ from those anticipated. These risks
include, but are not limited to, the effects of general economic
conditions, Amdocs’ ability to grow in the business markets that it
serves, Amdocs’ ability to successfully integrate acquired
businesses, adverse effects of market competition, rapid
technological shifts that may render the Company's products and
services obsolete, potential loss of a major customer, our ability
to develop long-term relationships with our customers, and risks
associated with operating businesses in the international market.
Amdocs may elect to update these forward-looking statements at some
point in the future; however, Amdocs specifically disclaims any
obligation to do so. These and other risks are discussed at greater
length in Amdocs’ filings with the Securities and Exchange
Commission, including in our Annual Report on Form 20-F for the
fiscal year ended September 30, 2018 filed on December 10, 2018 and
our Form 6-K furnished for the first quarter of fiscal 2019 on
February 19, 2019 and for the second quarter of fiscal 2019 on May
28, 2019 and for the third quarter of fiscal 2019 on August 19,
2019.
Contact: Matthew Smith Head of Investor
Relations Amdocs 314-212-8328 E-mail: dox_info@amdocs.com
AMDOCS
LIMITED
Consolidated Statements of
Income(in thousands, except per share
data)
|
|
Three months ended |
|
Fiscal year ended |
|
|
September 30, |
|
September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
1,030,253 |
|
|
$ |
1,002,588 |
|
|
$ |
4,086,669 |
|
|
$ |
3,974,837 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
667,129 |
|
|
|
654,923 |
|
|
|
2,653,172 |
|
|
|
2,595,276 |
|
Research and development |
|
|
70,109 |
|
|
|
70,783 |
|
|
|
273,936 |
|
|
|
276,615 |
|
Selling, general and administrative |
|
|
125,046 |
|
|
|
125,830 |
|
|
|
492,457 |
|
|
|
481,093 |
|
Amortization of purchased intangible assets and other |
|
|
23,815 |
|
|
|
27,233 |
|
|
|
97,358 |
|
|
|
108,489 |
|
Non-recurring charges |
|
|
- |
|
|
|
55,000 |
|
|
|
- |
|
|
|
85,057 |
|
|
|
|
886,099 |
|
|
|
933,769 |
|
|
|
3,516,923 |
|
|
|
3,546,530 |
|
Operating income |
|
|
144,154 |
|
|
|
68,819 |
|
|
|
569,746 |
|
|
|
428,307 |
|
|
|
|
|
|
|
|
|
|
Interest and other income
(expense), net |
|
|
2,444 |
|
|
|
(3,436 |
) |
|
|
(1,859 |
) |
|
|
(6,766 |
) |
Income before income
taxes |
|
|
146,598 |
|
|
|
65,383 |
|
|
|
567,887 |
|
|
|
421,541 |
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
24,571 |
|
|
|
21,117 |
|
|
|
88,441 |
|
|
|
67,145 |
|
Net income |
|
$ |
122,027 |
|
|
$ |
44,266 |
|
|
$ |
479,446 |
|
|
$ |
354,396 |
|
Basic earnings per share |
|
$ |
0.90 |
|
|
$ |
0.31 |
|
|
$ |
3.49 |
|
|
$ |
2.49 |
|
Diluted earnings per
share |
|
$ |
0.90 |
|
|
$ |
0.31 |
|
|
$ |
3.47 |
|
|
$ |
2.47 |
|
Basic weighted average number
of shares outstanding |
|
|
135,317 |
|
|
|
140,760 |
|
|
|
137,418 |
|
|
|
142,422 |
|
Diluted weighted average
number of shares outstanding |
|
|
136,151 |
|
|
|
141,872 |
|
|
|
138,108 |
|
|
|
143,703 |
|
Cash dividends declared per
share |
|
$ |
0.285 |
|
|
$ |
0.250 |
|
|
$ |
1.105 |
|
|
$ |
0.970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMDOCS LIMITEDSelected Financial
Metrics(In thousands, except per share
data)
|
|
Three months ended |
|
Fiscal year ended |
|
|
September 30, |
|
September 30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
1,030,253 |
|
$ |
1,002,588 |
|
$ |
4,086,669 |
|
$ |
3,974,837 |
|
|
|
|
|
|
|
|
|
Non-GAAP operating income |
|
|
177,989 |
|
|
172,606 |
|
|
707,889 |
|
|
687,020 |
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
|
147,137 |
|
|
140,230 |
|
|
595,089 |
|
|
579,593 |
|
|
|
|
|
|
|
|
|
Non-GAAP diluted earnings per
share |
|
$ |
1.08 |
|
$ |
0.99 |
|
$ |
4.31 |
|
$ |
4.03 |
|
|
|
|
|
|
|
|
|
Diluted weighted average
number of shares outstanding |
|
|
136,151 |
|
|
141,872 |
|
|
138,108 |
|
|
143,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flows and Normalized Free Cash
Flow(In thousands)
|
|
Three months ended |
|
Fiscal year ended |
|
|
September 30, |
|
September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Operating
Activities |
|
$ |
213,625 |
|
|
$ |
115,349 |
|
|
$ |
656,377 |
|
|
$ |
557,249 |
|
|
|
|
|
|
|
|
|
|
Purchases of property and
equipment, net (*) |
|
|
(34,325 |
) |
|
|
(33,893 |
) |
|
|
(128,086 |
) |
|
|
(231,146 |
) |
|
|
|
|
|
|
|
|
|
Other |
|
|
- |
|
|
|
(135 |
) |
|
|
- |
|
|
|
(458 |
) |
|
|
|
|
|
|
|
|
|
Free Cash Flow |
|
|
179,300 |
|
|
|
81,321 |
|
|
|
528,291 |
|
|
|
325,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for legal dispute
settlement |
|
|
- |
|
|
|
- |
|
|
|
55,000 |
|
|
|
- |
|
Payments for previously
expensed restructuring charges |
|
|
1,233 |
|
|
|
6,500 |
|
|
|
15,627 |
|
|
|
6,500 |
|
Net capital expenditures
related to the new campus development (*) |
|
|
9,101 |
|
|
|
1,218 |
|
|
|
6,895 |
|
|
|
96,229 |
|
Payments of acquisition
related liabilities |
|
|
- |
|
|
|
- |
|
|
|
7,667 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Normalized Free Cash Flow |
|
$ |
189,634 |
|
|
$ |
89,039 |
|
|
$ |
613,480 |
|
|
$ |
428,374 |
|
(*) The amounts under "Purchase of property and
equipment, net”, and the amounts under “Net capital expenditures
related to the new campus development” include proceeds of $9,676
relating to the refund of betterment levy for fiscal year ended 30
September 2019 and proceeds from sale of property and equipment of
$77 and $151, $346 and $459, for the three months and fiscal year
ended 30 September 2019 and 2018,
respectively.
AMDOCS
LIMITED
Reconciliation of Selected Financial
Metrics from GAAP to Non-GAAP (In
thousands)
|
|
Three months endedSeptember 30,
2019 |
|
|
Reconciliation items |
|
|
|
|
GAAP |
Amortization ofpurchasedintangible assetsand
other |
Equity-basedcompensationexpense |
Changes in certainacquisition relatedliabilities measuredat
fair value |
Other |
Taxeffect
|
Non-GAAP |
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenue |
$ |
667,129 |
$ |
- |
|
$ |
(4,618 |
) |
$ |
(2,036 |
) |
$ |
- |
|
$ |
- |
|
$ |
660,475 |
|
Research and development |
|
70,109 |
|
- |
|
|
(757 |
) |
|
- |
|
|
- |
|
|
- |
|
|
69,352 |
|
Selling, general and administrative |
|
125,046 |
|
- |
|
|
(2,609 |
) |
|
- |
|
|
- |
|
|
- |
|
|
122,437 |
|
Amortization of purchased intangible assets and other |
|
23,815 |
|
(23,815 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Total
operating expenses |
|
886,099 |
|
(23,815 |
) |
|
(7,984 |
) |
|
(2,036 |
) |
|
- |
|
|
- |
|
|
852,264 |
|
|
|
|
|
|
|
|
|
Operating income |
|
144,154 |
|
23,815 |
|
|
7,984 |
|
|
2,036 |
|
|
- |
|
|
- |
|
|
177,989 |
|
|
|
|
|
|
|
|
|
Interest and other income
(expense), net |
|
2,444 |
|
- |
|
|
- |
|
|
- |
|
|
(4,964 |
) |
|
- |
|
|
(2,520 |
) |
|
|
|
|
|
|
|
|
Income taxes |
|
24,571 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
3,761 |
|
|
28,332 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
122,027 |
$ |
23,815 |
|
$ |
7,984 |
|
$ |
2,036 |
|
$ |
(4,964 |
) |
$ |
(3,761 |
) |
$ |
147,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months endedSeptember 30,
2018 |
|
|
Reconciliation items |
|
|
|
|
GAAP |
Amortization ofpurchasedintangible assetsand
other |
Equity-basedcompensationexpense |
Changes in certainacquisitions relatedliabilities
measuredat fair value |
Non-recurringcharges |
Taxeffect
|
Non-GAAP |
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenue |
$ |
654,923 |
$ |
- |
|
$ |
(3,752 |
) |
$ |
(8,658 |
) |
$ |
- |
|
$ |
- |
|
$ |
642,513 |
|
Research and development |
|
70,783 |
|
- |
|
|
(813 |
) |
|
- |
|
|
- |
|
|
- |
|
|
69,970 |
|
Selling, general and administrative |
|
125,830 |
|
- |
|
|
(8,331 |
) |
|
- |
|
|
- |
|
|
- |
|
|
117,499 |
|
Amortization of purchased intangible assets and other |
|
27,233 |
|
(27,233 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Non-recurring charges |
|
55,000 |
|
- |
|
|
- |
|
|
- |
|
|
(55,000 |
) |
|
- |
|
|
- |
|
Total operating expenses |
|
933,769 |
|
(27,233 |
) |
|
(12,896 |
) |
|
(8,658 |
) |
|
(55,000 |
) |
|
- |
|
|
829,982 |
|
|
|
|
|
|
|
|
|
Operating income |
|
68,819 |
|
27,233 |
|
|
12,896 |
|
|
8,658 |
|
|
55,000 |
|
|
- |
|
|
172,606 |
|
|
|
|
|
|
|
|
|
Income taxes |
|
21,117 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
7,822 |
|
|
28,940 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
44,266 |
$ |
27,233 |
|
$ |
12,896 |
|
$ |
8,658 |
|
$ |
55,000 |
|
$ |
(7,822 |
) |
$ |
140,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMDOCS
LIMITED
Reconciliation of Selected Financial
Metrics from GAAP to Non-GAAP (In
thousands)
|
Fiscal year endedSeptember 30,
2019 |
|
|
Reconciliation items |
|
|
GAAP |
Amortization ofpurchasedintangible assetsand
other |
Equity-basedcompensationexpense |
Changes in certainacquisitions relatedliabilities
measuredat fair value |
Other |
Taxeffect |
Non-GAAP |
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenue |
$ |
2,653,172 |
|
$ |
- |
|
$ |
(19,879 |
) |
$ |
(2,235 |
) |
$ |
- |
|
$ |
- |
|
$ |
2,631,058 |
|
Research and development |
|
273,936 |
|
|
- |
|
|
(2,714 |
) |
|
- |
|
|
- |
|
|
- |
|
|
271,222 |
|
Selling, general and administrative |
|
492,457 |
|
|
- |
|
|
(15,957 |
) |
|
- |
|
|
- |
|
|
- |
|
|
476,500 |
|
Amortization of purchased intangible assets and other |
|
97,358 |
|
|
(97,358 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Total
operating expenses |
|
3,516,923 |
|
|
(97,358 |
) |
|
(38,550 |
) |
|
(2,235 |
) |
|
- |
|
|
- |
|
|
3,378,780 |
|
|
|
|
|
|
|
|
|
Operating income |
|
569,746 |
|
|
97,358 |
|
|
38,550 |
|
|
2,235 |
|
|
- |
|
|
- |
|
|
707,889 |
|
|
|
|
|
|
|
|
|
Interest and other income
(expense), net |
|
(1,859 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(2,939 |
) |
|
- |
|
|
(4,798 |
) |
|
|
|
|
|
|
|
|
Income taxes |
|
88,441 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
19,561 |
|
|
108,002 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
479,446 |
|
$ |
97,358 |
|
$ |
38,550 |
|
$ |
2,235 |
|
$ |
(2,939 |
) |
$ |
(19,561 |
) |
$ |
595,089 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal year endedSeptember 30,
2018 |
|
|
Reconciliation items |
|
|
GAAP |
Amortization ofpurchasedintangible assetsand
other |
Equity-basedcompensationexpense |
Changes in certainacquisitions relatedliabilities
measuredat fair value |
Non-recurringcharges |
Taxeffect
|
Non-GAAP |
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenue |
$ |
2,595,276 |
|
$ |
- |
|
$ |
(18,253 |
) |
$ |
(17,692 |
) |
$ |
- |
|
$ |
- |
|
$ |
2,559,331 |
|
Research and development |
|
276,615 |
|
|
- |
|
|
(3,477 |
) |
|
- |
|
|
- |
|
|
- |
|
|
273,138 |
|
Selling, general and administrative |
|
481,093 |
|
|
- |
|
|
(25,746 |
) |
|
- |
|
|
- |
|
|
- |
|
|
455,347 |
|
Amortization of purchased intangible assets and other |
|
108,489 |
|
|
(108,489 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Non-recurring
charges |
|
85,057 |
|
|
- |
|
|
- |
|
|
- |
|
|
(85,057 |
) |
|
- |
|
|
- |
|
Total operating expenses |
|
3,546,530 |
|
|
(108,489 |
) |
|
(47,476 |
) |
|
(17,692 |
) |
|
(85,057 |
) |
|
- |
|
|
3,287,816 |
|
|
|
|
|
|
|
|
|
Operating income |
|
428,307 |
|
|
108,489 |
|
|
47,476 |
|
|
17,692 |
|
|
85,057 |
|
|
- |
|
|
687,020 |
|
|
|
|
|
|
|
|
|
Income taxes |
|
67,145 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
33,517 |
|
|
100,662 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
354,396 |
|
$ |
108,489 |
|
$ |
47,476 |
|
$ |
17,692 |
|
$ |
85,057 |
|
$ |
(33,517 |
) |
$ |
579,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMDOCS LIMITEDCondensed
Consolidated Balance Sheets (In
thousands)
|
As of |
|
|
September 30,2019 |
|
September 30,2018 |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
Cash, cash equivalents and short-term interest-bearing
investments |
|
$ |
471,632 |
|
$ |
519,216 |
Accounts receivable, net,
including unbilled of $227,061 and $263,997, respectively |
|
|
987,858 |
|
|
971,502 |
Prepaid expenses and other
current assets |
|
|
216,084 |
|
|
229,999 |
Total current
assets |
|
|
1,675,574 |
|
|
1,720,717 |
|
|
|
|
|
Property and equipment,
net |
|
|
525,314 |
|
|
496,585 |
Goodwill and other intangible
assets, net |
|
|
2,667,997 |
|
|
2,710,144 |
Other noncurrent assets |
|
|
423,941 |
|
|
420,369 |
Total assets |
|
$ |
5,292,826 |
|
$ |
5,347,815 |
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable, accruals and
other |
|
$ |
1,089,748 |
|
$ |
1,162,543 |
Deferred revenue |
|
|
118,182 |
|
|
132,414 |
Total current
liabilities |
|
|
1,207,930 |
|
|
1,294,957 |
Other noncurrent
liabilities |
|
|
542,430 |
|
|
560,816 |
Total Amdocs Limited
Shareholders’ equity |
|
|
3,499,957 |
|
|
3,448,879 |
Noncontrolling interests |
|
|
42,509 |
|
|
43,163 |
Total equity |
|
|
3,542,466 |
|
|
3,492,042 |
Total liabilities and
equity |
|
$ |
5,292,826 |
|
$ |
5,347,815 |
|
|
|
|
|
|
|
AMDOCS
LIMITEDConsolidated Statements of Cash
Flows(In thousands)
|
|
Fiscal year ended September
30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
Cash Flow from
Operating Activities: |
|
|
|
|
Net income |
|
$ |
479,446 |
|
|
$ |
354,396 |
|
Reconciliation of net income
to net cash provided by operating activities: |
|
|
|
|
Depreciation and
amortization |
|
|
205,772 |
|
|
|
211,224 |
|
Equity-based
compensation expense |
|
|
38,550 |
|
|
|
47,476 |
|
Deferred income
taxes |
|
|
(13,950 |
) |
|
|
25,098 |
|
Loss from short-term
interest-bearing investments |
|
|
737 |
|
|
|
1,324 |
|
Net changes in operating
assets and liabilities, net of amounts acquired: |
|
|
|
|
Accounts receivable,
net |
|
|
6,589 |
|
|
|
(66,451 |
) |
Prepaid expenses and
other current assets |
|
|
25,907 |
|
|
|
(18,736 |
) |
Other noncurrent
assets |
|
|
(1,635 |
) |
|
|
9,674 |
|
Accounts payable,
accrued expenses and accrued personnel |
|
|
(60,042 |
) |
|
|
25,348 |
|
Deferred revenue |
|
|
(37,855 |
) |
|
|
7,650 |
|
Income taxes payable,
net |
|
|
6,025 |
|
|
|
(31,036 |
) |
Other noncurrent
liabilities |
|
|
6,833 |
|
|
|
(8,718 |
) |
Net cash provided by operating
activities |
|
|
656,377 |
|
|
|
557,249 |
|
|
|
|
|
|
Cash Flow from
Investing Activities: |
|
|
|
|
Purchases of property and
equipment, net (*) |
|
|
(128,086 |
) |
|
|
(231,146 |
) |
Proceeds from sale of
short-term interest-bearing investments |
|
|
101,287 |
|
|
|
303,090 |
|
Purchase of short-term
interest-bearing investments |
|
|
- |
|
|
|
(76,037 |
) |
Net cash paid for
acquisitions |
|
|
(60,572 |
) |
|
|
(355,142 |
) |
Other |
|
|
615 |
|
|
|
(3,157 |
) |
Net cash used in investing
activities |
|
|
(86,756 |
) |
|
|
(362,392 |
) |
|
|
|
|
|
Cash Flow from
Financing Activities: |
|
|
|
|
Borrowings under financing
arrangements |
|
|
- |
|
|
|
120,000 |
|
Payments under financing
arrangements |
|
|
- |
|
|
|
(120,000 |
) |
Repurchase of shares |
|
|
(398,057 |
) |
|
|
(419,228 |
) |
Proceeds from employee stock
options exercised |
|
|
41,483 |
|
|
|
81,280 |
|
Payments of dividends |
|
|
(147,616 |
) |
|
|
(134,292 |
) |
Investment by noncontrolling
interests, net |
|
|
(4,776 |
) |
|
|
47,013 |
|
Payment of contingent
consideration from a business acquisition |
|
|
(7,470 |
) |
|
|
- |
|
Other |
|
|
(336 |
) |
|
|
(458 |
) |
Net cash used in financing
activities |
|
|
(516,772 |
) |
|
|
(425,685 |
) |
|
|
|
|
|
Net increase (decrease) in
cash and cash equivalents |
|
|
52,849 |
|
|
|
(230,828 |
) |
Cash and cash equivalents at
beginning of period |
|
|
418,783 |
|
|
|
649,611 |
|
Cash and cash equivalents at
end of period |
|
$ |
471,632 |
|
|
$ |
418,873 |
|
|
|
|
|
|
|
|
|
|
(*) The amounts under "Purchase of property and equipment, net”,
include proceeds of $9,676 relating to the refund of betterment
levy for the fiscal year ended September 30, 2019 and proceeds from
sale of property and equipment of $151 and $459, for the fiscal
year ended September 30, 2019 and 2018, respectively.
AMDOCS
LIMITEDSupplementary
Information (In millions)
|
|
Three months ended |
|
|
September 30,2019 |
|
June 30,2019 |
|
March 31,2019 |
|
December 31,2018 |
|
September 30,2018 |
North America |
|
$ |
644.2 |
|
$ |
643.9 |
|
$ |
634.2 |
|
$ |
660.5 |
|
$ |
638.2 |
Europe |
|
|
156.1 |
|
|
145.5 |
|
|
151.0 |
|
|
146.1 |
|
|
150.6 |
Rest of the World |
|
|
230.0 |
|
|
235.3 |
|
|
234.5 |
|
|
205.5 |
|
|
213.8 |
Total Revenue |
|
$ |
1,030.3 |
|
$ |
1,024.7 |
|
$ |
1,019.7 |
|
$ |
1,012.1 |
|
$ |
1,002.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
September 30,2019 |
|
June 30,2019 |
|
March 31,2019 |
|
December 31,2018 |
|
September 30,2018 |
Managed Services Revenue |
|
$ |
583.3 |
|
$ |
578.1 |
|
$ |
559.5 |
|
$ |
525.5 |
|
$ |
508.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
September 30,2019 |
|
June 30,2019 |
|
March 31,2019 |
|
December 31,2018 |
|
September 30,2018 |
12-Month Backlog |
|
$ |
3,490 |
|
$ |
3,400 |
|
$ |
3,390 |
|
$ |
3,370 |
|
$ |
3,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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