-- Revenues increase 9% in U.S. dollars and 10%
in local currency to $8.4 billion --
-- EPS are $1.41, compared with $1.24; up 8%
from adjusted EPS of $1.30 in the third quarter last year --
-- Operating income is $1.31 billion, with
operating margin of 15.5%, an expansion of 10 basis points
from adjusted operating margin in the third quarter last year
--
-- New bookings are $9.1 billion, with
consulting bookings of $4.9 billion and outsourcing bookings of
$4.2 billion --
-- Company updates business outlook for fiscal
2016 --
Accenture (NYSE:ACN) reported financial results for the third
quarter of fiscal 2016, ended May 31, 2016, with net revenues of
$8.4 billion, an increase of 9 percent in U.S. dollars
and 10 percent in local currency over the same period last
year.
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Diluted earnings per share were $1.41, compared with $1.24 for
the third quarter last year, which included a non-cash pension
settlement charge of $64 million, pre-tax, or $0.06 per share.
Excluding this charge, diluted EPS for the third quarter last year
were $1.30. Diluted EPS for the third quarter of fiscal 2016
increased 8 percent from adjusted EPS for the third quarter last
year.
Operating income for the quarter was $1.31 billion, or 15.5
percent of net revenues, compared with $1.13 billion, or 14.6
percent of net revenues, for the third quarter last year, which
included the $64 million pension settlement charge. Excluding this
charge, operating income for the third quarter of fiscal 2015 was
$1.20 billion, or 15.4 percent of net revenues.
New bookings for the quarter were $9.1 billion, with consulting
bookings of $4.9 billion and outsourcing bookings of
$4.2 billion.
Pierre Nanterme, Accenture’s chairman and CEO, said, “We are
very pleased with our third-quarter financial results and the
continued strong momentum in our business. We delivered
10 percent revenue growth in local currency, and our new
bookings of $9.1 billion demonstrate that we are providing highly
relevant services to our clients. We expanded operating margin,
generated strong free cash flow and returned $1.2 billion in cash
to our shareholders.
“Our excellent results reflect the investments we have made to
differentiate Accenture in the marketplace as well as our
successful rotation to digital, cloud and security services, which
now account for approximately 40 percent of our total
revenues. Looking ahead, we are confident in our ability to
continue gaining market share, driving profitable growth and
delivering value for our clients and shareholders.”
Financial Review
Revenues before reimbursements (“net revenues”) for the third
quarter of fiscal 2016 were $8.43 billion, compared with
$7.77 billion for the third quarter of fiscal 2015, an
increase of 9 percent in U.S. dollars and 10 percent in
local currency. Net revenues for the quarter reflect a
foreign-exchange impact of approximately negative 2 percent,
compared with the negative 2.5 percent we had previously
assumed. Adjusting for the actual foreign-exchange impact of
approximately negative 2 percent in the quarter, the company’s
guided range for quarterly net revenues was $8.15 billion to
$8.40 billion. Accenture’s third quarter fiscal 2016 net
revenues were approximately $35 million above this adjusted
range.
- Consulting net revenues for the quarter
were $4.62 billion, an increase of 12 percent in U.S. dollars and
14 percent in local currency compared with the third quarter of
fiscal 2015.
- Outsourcing net revenues were
$3.81 billion, an increase of 4 percent in U.S. dollars and
6 percent in local currency over the third quarter of fiscal
2015.
Diluted EPS for the quarter were $1.41, a $0.17, or 14 percent,
increase from $1.24 for the third quarter last year, which included
a non-cash pension settlement charge of $64 million, pre-tax,
or $0.06 per share. Excluding this charge, EPS for the third
quarter last year were $1.30. The $0.11, or 8 percent, increase
from adjusted EPS last year reflects:
- a $0.12 increase from higher
revenue and operating results; and
- a $0.02 increase from a lower share
count
partially offset by:
- a $0.02 decrease from a higher
effective tax rate; and
- a $0.01 decrease from higher
non-operating expense.
Gross margin (gross profit as a percentage of net revenues) for
the quarter was 31.9 percent, compared with 32.5 percent for
the third quarter last year. Selling, general and administrative
(SG&A) expenses for the quarter were $1.38 billion, or
16.4 percent of net revenues, compared with $1.33 billion, or
17.1 percent of net revenues, for the third quarter last
year.
Operating income for the quarter was $1.31 billion, or
15.5 percent of net revenues, compared with $1.13 billion, or
14.6 percent of net revenues, for the third quarter last year,
which included the $64 million pension settlement charge. Excluding
the charge, operating income for the third quarter last year was
$1.20 billion, or 15.4 percent of net revenues. Operating income
for the third quarter of fiscal 2016 increased 15 percent on a GAAP
basis and 9 percent from adjusted operating income for the third
quarter last year.
The company’s effective tax rate for the quarter was
26.5 percent, compared with 24.9 percent for the third quarter
last year. Excluding the impact of the pension settlement charge,
the effective tax rate for the third quarter last year was 25.7
percent.
Net income for the quarter was $950 million, compared with $850
million for the third quarter last year, which included a $39
million after-tax impact from the pension settlement charge. Net
income for the third quarter of fiscal 2016 increased 12 percent on
a GAAP basis and 7 percent from adjusted net income for the
third quarter last year.
Operating cash flow for the quarter was $1.59 billion, and
property and equipment additions were $94 million. Free cash
flow, defined as operating cash flow net of property and equipment
additions, was $1.50 billion. For the same period last year,
operating cash flow was $1.41 billion; property and equipment
additions were $114 million; and free cash flow was
$1.30 billion.
Days services outstanding, or DSOs, were 41 days at May 31,
2016, compared with 37 days at both Aug. 31, 2015 and May 31,
2015.
Accenture’s total cash balance at May 31, 2016 was
$3.5 billion, compared with $4.4 billion at Aug. 31,
2015.
Utilization for the quarter was 91 percent, compared with
90 percent for both the second quarter of fiscal 2016 and the
third quarter of fiscal 2015.
Attrition for the quarter was 15 percent, compared with 13
percent for the second quarter of fiscal 2016 and 15 percent
for the third quarter of fiscal 2015.
New Bookings
New bookings for the third quarter were $9.1 billion and
reflect a negative 2 percent foreign-currency impact compared
with new bookings in the third quarter last year.
- Consulting new bookings were
$4.9 billion, or 54 percent of total new bookings.
- Outsourcing new bookings were
$4.2 billion, or 46 percent of total new bookings.
Net Revenues by Operating Group
Net revenues by operating group were as follows:
- Communications, Media & Technology:
$1.71 billion, compared with $1.61 billion for the third
quarter of fiscal 2015, an increase of 6 percent in U.S.
dollars and 8 percent in local currency.
- Financial Services: $1.80 billion,
compared with $1.64 billion for the third quarter of fiscal
2015, an increase of 10 percent in U.S. dollars and 12 percent
in local currency.
- Health & Public Service: $1.54
billion, compared with $1.38 billion for the third quarter of
fiscal 2015, an increase of 11 percent in U.S. dollars and
12 percent in local currency.
- Products: $2.16 billion, compared
with $1.88 billion for the third quarter of fiscal 2015, an
increase of 15 percent in U.S. dollars and 16 percent in local
currency.
- Resources: $1.22 billion, compared
with $1.25 billion for the third quarter of fiscal 2015, a
decrease of 2 percent in U.S. dollars and an increase of
1 percent in local currency.
Net Revenues by Geographic Region
Net revenues by geographic region for the third quarter of
fiscal 2016 were as follows:
- North America: $4.02 billion,
compared with $3.64 billion for the third quarter of fiscal
2015, an increase of 10 percent in U.S. dollars and
11 percent in local currency.
- Europe: $2.95 billion, compared with
$2.65 billion for the third quarter of fiscal 2015, an
increase of 11 percent in U.S. dollars and 12 percent in local
currency.
- Growth Markets: $1.47 billion,
compared with $1.47 billion for the third quarter of fiscal 2015,
flat in U.S. dollars and an increase of 6 percent in local
currency.
Returning Cash to
Shareholders
Accenture continues to return cash to shareholders through cash
dividends and share repurchases.
Dividend
On May 13, 2016, a semi-annual cash dividend of $1.10 per share
was paid on Accenture plc Class A ordinary shares to shareholders
of record at the close of business on April 15, 2016 and on
Accenture Holdings plc ordinary shares to shareholders of record at
the close of business on April 12, 2016.
Combined with the semi-annual cash dividend of $1.10 per share
paid on Nov. 13, 2015, this brings the total dividend payments for
the fiscal year to $2.20 per share, for total cash dividend
payments of approximately $1.44 billion.
Share Repurchase Activity
During the third quarter of fiscal 2016, Accenture repurchased
or redeemed 4.3 million shares, including 3.9 million shares
repurchased in the open market, for a total of $478 million.
This brings Accenture’s total share repurchases and redemptions for
the first three quarters of fiscal 2016 to 18.9 million shares,
including 15.5 million shares repurchased in the open market, for a
total of $1.97 billion.
Accenture’s total remaining share repurchase authority at May
31, 2016 was approximately $5.9 billion.
At May 31, 2016, Accenture had approximately 652 million
total shares outstanding, including 623 million Accenture plc
Class A ordinary shares and minority holdings of 29 million
shares (Accenture Holdings plc ordinary shares and Accenture Canada
Holdings Inc. exchangeable shares).
Business Outlook
Fourth Quarter Fiscal 2016
Accenture expects net revenues for the fourth quarter of fiscal
2016 to be in the range of $8.25 billion to
$8.50 billion, 6 percent to 9 percent growth in local
currency, reflecting the company’s assumption of a negative
1 percent foreign-exchange impact compared with the fourth
quarter of fiscal 2015.
Fiscal Year 2016
Accenture’s business outlook for the full 2016 fiscal year now
assumes a foreign-exchange impact of negative 4.5 percent
compared with fiscal 2015; the previous foreign-exchange assumption
was negative 5 percent.
For fiscal 2016, the company now expects net revenue growth to
be in the range of 9.5 percent to 10.5 percent in local
currency, compared with 8 percent to 10 percent previously.
The company now expects diluted EPS to be in the range of $6.03
to $6.07 on a GAAP basis and $5.29 to $5.33 on an adjusted basis,
excluding the $0.74 after-tax impact of the gain on the sale of
Navitaire in the second quarter. The company previously expected
diluted EPS to be in the range of $5.95 to $6.06 on a GAAP
basis and $5.21 to $5.32 on an adjusted basis.
Accenture now expects operating margin for the full fiscal year
to be 14.6 percent, an expansion of 10 basis points from the
adjusted operating margin of 14.5 percent in fiscal 2015,
which excluded the 20 basis-point impact of the pension settlement
charge. The company previously expected operating margin for the
full fiscal year to be in the range of 14.6 percent to 14.7
percent.
For fiscal 2016, the company continues to expect operating cash
flow to be in the range of $4.1 billion to $4.4 billion; property
and equipment additions to be $500 million; and free cash flow
to be in the range of $3.6 billion to $3.9 billion.
The company continues to expect its annual effective tax rate to
be in the range of 22.5 percent to 23.5 percent on a GAAP
basis and 24.0 percent to 25.0 percent on an adjusted basis,
excluding an estimated 1.5 percent impact from the gain on the sale
of Navitaire.
Conference Call and Webcast
Details
Accenture will host a conference call at 8:00 a.m. EDT today to
discuss its third-quarter financial results. To participate, please
dial +1 (800) 230-1059 [+1 (612) 234-9959 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 and
continuing until Thursday, Sept. 29, 2016. A podcast of the
conference call will be available online at www.accenture.com
beginning approximately 24 hours after the call and continuing
until Thursday, Sept. 29, 2016. The replay will also be available
via telephone by dialing +1 (800) 475-6701 [+1 (320) 365-3844
outside the United States, Puerto Rico and Canada] and entering
access code 394564 from 10:30 a.m. EDT today through Thursday,
Sept. 29, 2016.
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining unmatched
experience and specialized skills across more than 40 industries
and all business functions—underpinned by the world’s largest
delivery network—Accenture works at the intersection of business
and technology to help clients improve their performance and create
sustainable value for their stakeholders. With more than 375,000
people serving clients in more than 120 countries, Accenture drives
innovation to improve the way the world works and lives. Visit us
at www.accenture.com.
Non-GAAP Financial
Information
This news release includes certain non-GAAP financial
information as defined by Securities and Exchange Commission
Regulation G. Pursuant to the requirements of this regulation,
reconciliations of this non-GAAP financial information to
Accenture’s financial statements as prepared under generally
accepted accounting principles (GAAP) are included in this press
release. Financial results “in local currency” are calculated by
restating current-period activity into U.S. dollars using the
comparable prior-year period’s foreign-currency exchange rates.
Accenture’s management believes providing investors with this
information gives additional insights into Accenture’s results of
operations. While Accenture’s management believes that the non-GAAP
financial measures herein are useful in evaluating Accenture’s
operations, this information should be considered as supplemental
in nature and not as a substitute for the related financial
information prepared in accordance with GAAP.
Forward-Looking
Statements
Except for the historical information and discussions contained
herein, statements in this news release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as “may,”
“will,” “should,” “likely,” “anticipates,” “expects,” “intends,”
“plans,” “projects,” “believes,” “estimates,” “positioned,”
“outlook” and similar expressions are used to identify these
forward-looking statements. These statements involve a number of
risks, uncertainties and other factors that could cause actual
results to differ materially from those expressed or implied. These
include, without limitation, risks that: the company’s results of
operations could be adversely affected by volatile, negative or
uncertain economic conditions and the effects of these conditions
on the company’s clients’ businesses and levels of business
activity; the company’s business depends on generating and
maintaining ongoing, profitable client demand for the company’s
services and solutions, and a significant reduction in such demand
could materially affect the company’s results of operations; if the
company is unable to keep its supply of skills and resources in
balance with client demand around the world and attract and retain
professionals with strong leadership skills, the company’s
business, the utilization rate of the company’s professionals and
the company’s results of operations may be materially adversely
affected; the markets in which the company competes are highly
competitive, and the company might not be able to compete
effectively; the company could have liability or the company’s
reputation could be damaged if the company fails to protect client
and/or company data or information systems as obligated by law or
contract or if the company’s information systems are breached; the
company’s results of operations and ability to grow could be
materially negatively affected if the company cannot adapt and
expand its services and solutions in response to ongoing changes in
technology and offerings by new entrants; the company’s results of
operations could materially suffer if the company is not able to
obtain sufficient pricing to enable it to meet its profitability
expectations; if the company does not accurately anticipate the
cost, risk and complexity of performing its work or if the third
parties upon whom it relies do not meet their commitments, then the
company’s contracts could have delivery inefficiencies and be less
profitable than expected or unprofitable; the company’s results of
operations could be materially adversely affected by fluctuations
in foreign currency exchange rates; the company’s profitability
could suffer if its cost-management strategies are unsuccessful,
and the company may not be able to improve its profitability
through improvements to cost-management to the degree it has done
in the past; the company’s business could be materially adversely
affected if the company incurs legal liability; the company’s work
with government clients exposes the company to additional risks
inherent in the government contracting environment; the company
might not be successful at identifying, acquiring or integrating
businesses, entering into joint ventures or divesting businesses;
the company’s Global Delivery Network is increasingly concentrated
in India and the Philippines, which may expose it to operational
risks; changes in the company’s level of taxes, as well as audits,
investigations and tax proceedings, or changes in the company’s
treatment as an Irish company, could have a material adverse effect
on the company’s results of operations and financial condition; as
a result of the company’s geographically diverse operations and its
growth strategy to continue geographic expansion, the company is
more susceptible to certain risks; adverse changes to the company’s
relationships with key alliance partners or in the business of its
key alliance partners could adversely affect the company’s results
of operations; the company’s services or solutions could infringe
upon the intellectual property rights of others or the company
might lose its ability to utilize the intellectual property of
others; if the company is unable to protect its intellectual
property rights from unauthorized use or infringement by third
parties, its business could be adversely affected; the company’s
ability to attract and retain business and employees may depend on
its reputation in the marketplace; if the company is unable to
manage the organizational challenges associated with its size, the
company might be unable to achieve its business objectives; any
changes to the estimates and assumptions that the company makes in
connection with the preparation of its consolidated financial
statements could adversely affect its financial results; many of
the company’s contracts include payments that link some of its fees
to the attainment of performance or business targets and/or require
the company to meet specific service levels, which could increase
the variability of the company’s revenues and impact its margins;
if the company is unable to collect its receivables or unbilled
services, the company’s results of operations, financial condition
and cash flows could be adversely affected; the company’s results
of operations and share price could be adversely affected if it is
unable to maintain effective internal controls; the company may be
subject to criticism and negative publicity related to its
incorporation in Ireland; as well as the risks, uncertainties and
other factors discussed under the “Risk Factors” heading in
Accenture plc’s most recent annual report on Form 10-K and other
documents filed with or furnished to the Securities and Exchange
Commission. Statements in this news release speak only as of the
date they were made, and Accenture undertakes no duty to update any
forward-looking statements made in this news release or to conform
such statements to actual results or changes in Accenture’s
expectations.
ACCENTURE PLCCONSOLIDATED INCOME
STATEMENTS(In thousands of U.S. dollars, except share and
per share amounts)(Unaudited)
Three Months Ended Nine Months
Ended
May 31, 2016
% of NetRevenues
May 31, 2015
% of NetRevenues
May 31, 2016
% of NetRevenues
May 31, 2015
% of NetRevenues
REVENUES:
Revenues before reimbursements(“Net
revenues”)
$ 8,434,757 100% $ 7,770,382 100% $ 24,393,485 100% $ 23,159,426
100% Reimbursements 534,287 504,684 1,438,596
1,390,487 Revenues 8,969,044 8,275,066 25,832,081 24,549,913
OPERATING EXPENSES: Cost of services:
Cost of services beforereimbursable
expenses
5,745,205 68.1% 5,245,477 67.5% 16,771,598 68.8% 15,854,592 68.5%
Reimbursable expenses 534,287 504,684 1,438,596
1,390,487 Cost of services 6,279,492 5,750,161
18,210,194 17,245,079 Sales and marketing 933,770 11.1% 874,713
11.3% 2,639,895 10.8% 2,580,931 11.1% General and administrative
costs 449,839 5.3% 452,291 5.8% 1,366,745 5.6% 1,317,260 5.7%
Pension settlement charge — — 64,382 0.8% — —
64,382 0.3% Total operating expenses 7,663,101
7,141,547 22,216,834 21,207,652
OPERATING
INCOME 1,305,943 15.5% 1,133,519 14.6% 3,615,247 14.8%
3,342,261 14.4% Interest income 7,679 6,441 21,532 25,880 Interest
expense (3,711 ) (4,030 ) (12,306 ) (10,746 ) Other expense, net
(16,207 ) (3,839 ) (33,391 ) (28,326 ) Gain on sale of business —
— 553,577 —
INCOME BEFORE INCOME
TAXES 1,293,704 15.3% 1,132,091 14.6% 4,144,659 17.0% 3,329,069
14.4% Provision for income taxes 343,421 281,861
925,837 843,405
NET INCOME 950,283 11.3%
850,230 10.9% 3,218,822 13.2% 2,485,664 10.7%
Net income attributable tononcontrolling
interests inAccenture Holdings plc and Accenture CanadaHoldings
Inc.
(42,574 ) (46,283 ) (145,529 ) (137,972 )
Net income attributable tononcontrolling
interests – other (1)
(10,462 ) (10,250 ) (30,627 ) (31,739 )
NET INCOME ATTRIBUTABLE TO
ACCENTURE PLC
$ 897,247 10.6% $ 793,697 10.2% $ 3,042,666
12.5% $ 2,315,953 10.0%
CALCULATION OF EARNINGS PER
SHARE: Net income attributable to Accenture plc $ 897,247 $
793,697 $ 3,042,666 $ 2,315,953
Net income attributable tononcontrolling
interests in AccentureHoldings plc and Accenture CanadaHoldings
Inc. (2)
42,574 46,283 145,529 137,972
Net income for diluted earnings pershare
calculation
$ 939,821 $ 839,980 $ 3,188,195 $ 2,453,925
EARNINGS PER SHARE: -Basic $ 1.44 $ 1.27 $ 4.86 $
3.69 -Diluted $ 1.41 $ 1.24 $ 4.77 $ 3.61
WEIGHTED AVERAGE
SHARES: -Basic 623,725,913 625,969,418 625,563,431 627,523,298
-Diluted 666,403,323 677,825,768 668,525,906 679,719,183 Cash
dividends per share $ 1.10 $ 1.02 $ 2.20 $ 2.04 _________ (1)
Comprised primarily of noncontrolling interest attributable
to the noncontrolling shareholders of Avanade, Inc. (2) Diluted
earnings per share assumes the redemption of all Accenture Holdings
plc ordinary shares owned by holders of noncontrolling interests
and the exchange of all Accenture Canada Holdings Inc. exchangeable
shares for Accenture plc Class A ordinary shares on a one-for-one
basis. The income effect does not take into account “Net income
attributable to noncontrolling interests — other,” since those
shares are not redeemable or exchangeable for Accenture plc Class A
ordinary shares.
ACCENTURE PLCSUMMARY OF
REVENUES(In thousands of U.S.
dollars)(Unaudited)
PercentIncrease
(Decrease) U.S. dollars
PercentIncrease Local
Currency
Three Months Ended May 31, 2016 May 31, 2015
OPERATING GROUPS Communications, Media & Technology $
1,707,707 $ 1,613,478 6% 8% Financial Services 1,804,876 1,638,313
10 12 Health & Public Service 1,539,496 1,383,639 11 12
Products 2,158,070 1,883,200 15 16 Resources 1,220,809 1,247,851
(2) 1 Other 3,799 3,901 n/m n/m
TOTAL Net
Revenues 8,434,757 7,770,382 9% 10% Reimbursements
534,287 504,684 6
TOTAL REVENUES $ 8,969,044 $
8,275,066 8%
GEOGRAPHY North America $ 4,016,565 $ 3,644,002
10% 11% Europe 2,946,374 2,653,071 11 12 Growth Markets
1,471,818 1,473,309 — 6
TOTAL Net Revenues $
8,434,757 $ 7,770,382 9% 10%
TYPE OF WORK Consulting $
4,621,267 $ 4,111,914 12% 14% Outsourcing 3,813,490
3,658,468 4 6
TOTAL Net Revenues $ 8,434,757 $ 7,770,382 9%
10%
Nine Months Ended
PercentIncrease
(Decrease) U.S. dollars
PercentIncrease Local
Currency
May 31, 2016 May 31, 2015 OPERATING GROUPS
Communications, Media & Technology $ 4,919,046 $ 4,711,300 4%
11% Financial Services 5,234,821 4,944,075 6 12 Health & Public
Service 4,445,627 4,071,998 9 12 Products 6,142,723 5,664,484 8 14
Resources 3,639,890 3,755,158 (3) 3 Other 11,378
12,411 n/m n/m
TOTAL Net Revenues 24,393,485 23,159,426 5%
11% Reimbursements 1,438,596 1,390,487 3
TOTAL
REVENUES $ 25,832,081 $ 24,549,913 5%
GEOGRAPHY North
America $ 11,570,865 $ 10,494,381 10% 11% Europe 8,615,845
8,217,856 5 13 Growth Markets 4,206,775 4,447,189 (5)
7
TOTAL Net Revenues $ 24,393,485 $ 23,159,426 5% 11%
TYPE OF WORK Consulting $ 13,260,176 $ 12,043,979 10% 16%
Outsourcing 11,133,309 11,115,447 — 6
TOTAL Net
Revenues $ 24,393,485 $ 23,159,426 5% 11%
_________
n/m = not meaningful
ACCENTURE PLCOPERATING INCOME BY
OPERATING GROUP(In thousands of U.S.
dollars)(Unaudited)
Three Months Ended May 31,
2016 May 31, 2015
OperatingIncome
OperatingMargin
OperatingIncome
OperatingMargin
Communications, Media & Technology $ 259,344 15% $ 237,902 15%
Financial Services 294,367 16 265,863 16 Health & Public
Service 243,137 16 202,644 15 Products 346,165 16 255,162 14
Resources 162,930 13 171,948 14 Total $ 1,305,943
15.5% $ 1,133,519 14.6%
Three Months Ended May 31, 2016 May 31,
2015
Operating Income andOperating
Margin asReported (GAAP)
Operating Income and Operating
Margin Excluding Pension Settlement Charge
(Non-GAAP)
OperatingIncome
OperatingMargin
OperatingIncome(GAAP)
PensionSettlementCharge
(1)
OperatingIncome(Adjusted)
OperatingMargin(Adjusted)
Increase(Decrease)
Communications, Media & Technology $ 259,344 15% $ 237,902 $
12,547 $ 250,449 16% $ 8,895 Financial Services 294,367 16 265,863
13,460 279,323 17 15,044 Health & Public Service 243,137 16
202,644 11,664 214,308 15 28,829 Products 346,165 16 255,162 15,823
270,985 14 75,180 Resources 162,930 13 171,948 10,888
182,836 15 (19,906 ) Total $ 1,305,943 15.5% $
1,133,519 $ 64,382 $ 1,197,901 15.4% $ 108,042
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 May 31,
2016 May 31, 2015
As Reported(GAAP)
As Reported(GAAP)
PensionSettlementCharge
(1)
Adjusted(Non-GAAP)
Income before income taxes $ 1,293,704 $ 1,132,091 $ 64,382 $
1,196,473 Provision for income taxes 343,421 281,861
25,238 307,099 Net income $ 950,283 $ 850,230
$ 39,144 $ 889,374 Effective tax rate 26.5 %
24.9 % 25.7 % Diluted earnings per share $ 1.41 $ 1.24 $ 0.06 $
1.30 _________ (1) Represents non-cash pension settlement
charge related to lump sum cash payment from plan assets offered to
eligible former employees.
ACCENTURE PLCOPERATING INCOME BY
OPERATING GROUP(In thousands of U.S.
dollars)(Unaudited)
Nine Months Ended May 31,
2016 May 31, 2015
OperatingIncome
OperatingMargin
OperatingIncome
OperatingMargin
Communications, Media & Technology $ 749,729 15 % $ 628,320 13
% Financial Services 847,686 16 791,606 16 Health & Public
Service 625,510 14 568,277 14 Products 923,724 15 816,720 14
Resources 468,598 13 537,338 14 Total $ 3,615,247
14.8 % $ 3,342,261 14.4 %
Nine Months Ended May 31, 2016 May 31,
2015
Operating Income and Operating
Margin as Reported (GAAP)
Operating Income and Operating
Margin Excluding Pension Settlement Charge
(Non-GAAP)
OperatingIncome
OperatingMargin
OperatingIncome
(GAAP)
PensionSettlementCharge
(1)
OperatingIncome(Adjusted)
OperatingMargin(Adjusted)
Increase(Decrease)
Communications, Media & Technology $ 749,729 15% $ 628,320 $
12,547 $ 640,867 14% $ 108,862 Financial Services 847,686 16
791,606 13,460 805,066 16 42,620 Health & Public Service
625,510 14 568,277 11,664 579,941 14 45,569 Products 923,724 15
816,720 15,823 832,543 15 91,181 Resources 468,598 13
537,338 10,888 548,226 15 (79,628 ) Total $
3,615,247 14.8% $ 3,342,261 $ 64,382 $
3,406,643 14.7% $ 208,604
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)
Nine Months Ended May 31, 2016
May 31, 2015
As Reported(GAAP)
Gain on Sale(2)
Adjusted(Non-GAAP)
As Reported(GAAP)
PensionSettlementCharge
(1)
Adjusted(Non-GAAP)
Income before income taxes $ 4,144,659 $ (553,577 ) $ 3,591,082 $
3,329,069 $ 64,382 $ 3,393,451 Provision for income taxes 925,837
(58,278 ) 867,559 843,405 25,238
868,643 Net Income $ 3,218,822 $ (495,299 ) $
2,723,523 $ 2,485,664 $ 39,144 $ 2,524,808
Effective tax rate 22.3 % 24.2 % 25.3 % 25.6 %
Diluted earnings per share $ 4.77 $ 0.74 $ 4.03 $ 3.61 $ 0.06 $
3.67 _________ (1) Represents non-cash pension settlement
charge related to lump sum cash payment from plan assets offered to
eligible former employees. (2) Represents gain on sale of business
related to Navitaire divestiture.
ACCENTURE PLCCONSOLIDATED
BALANCE SHEETS(In thousands of U.S. dollars)
May 31, 2016
August 31, 2015 (Unaudited) ASSETS CURRENT
ASSETS: Cash and cash equivalents $ 3,497,878 $ 4,360,766
Short-term investments 2,869 2,448 Receivables from clients, net
4,303,642 3,840,920 Unbilled services, net 2,136,836 1,884,504
Other current assets 1,634,786 1,490,756
Total current assets
11,576,011 11,579,394
NON-CURRENT ASSETS: Unbilled
services, net 51,179 15,501 Investments 132,427 45,027 Property and
equipment, net 883,609 801,884 Goodwill 3,538,147 2,929,833 Other
non-current assets 3,009,674 2,894,419 Total non-current
assets 7,615,036 6,686,664
TOTAL ASSETS $ 19,191,047
$ 18,266,058
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES: Current portion of long-term debt and
bank borrowings $ 2,072 $ 1,848 Accounts payable 1,133,430
1,151,464 Deferred revenues 2,349,050 2,251,617 Accrued payroll and
related benefits 3,410,777 3,687,468 Other accrued liabilities
1,265,804 1,439,802 Total current liabilities 8,161,133
8,532,199
NON-CURRENT LIABILITIES: Long-term debt
26,801 25,587 Other non-current liabilities 3,296,555
3,060,701 Total non-current liabilities 3,323,356 3,086,288
TOTAL ACCENTURE PLC SHAREHOLDERS’ EQUITY 7,127,325 6,133,725
NONCONTROLLING INTERESTS 579,233 513,846
TOTAL
SHAREHOLDERS’ EQUITY 7,706,558 6,647,571
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY $ 19,191,047 $
18,266,058
ACCENTURE PLCCONSOLIDATED CASH
FLOWS STATEMENTS(In thousands of U.S.
dollars)(Unaudited)
Three Months Ended Nine
Months Ended May 31, 2016 May 31, 2015
May 31, 2016 May 31, 2015 CASH FLOWS FROM
OPERATING ACTIVITIES: Net income $ 950,283 $ 850,230 $
3,218,822 $ 2,485,664 Depreciation, amortization and asset
impairments 181,010 153,405 535,637 472,160 Share-based
compensation expense 226,929 195,576 584,644 531,691 Gain on sale
of business — — (553,577 ) — Change in assets and
liabilities/other, net 232,803 214,153 (1,265,850 )
(901,964 ) Net cash provided by operating activities 1,591,025
1,413,364 2,519,676 2,587,551
CASH
FLOWS FROM INVESTING ACTIVITIES: Purchases of property and
equipment (93,655 ) (113,554 ) (336,500 ) (246,980 ) Purchases of
businesses and investments, net of cash acquired (84,911 ) (322,740
) (832,548 ) (442,202 ) Proceeds from the sale of businesses and
investments, net of cash transferred — 10,553 618,310 10,553 Other
investing, net 1,321 793 2,860 2,734
Net cash used in investing activities (177,245 ) (424,948 )
(547,878 ) (675,895 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of ordinary shares 222,825 187,152 525,992
496,339 Purchases of shares (478,289 ) (518,176 ) (1,965,050 )
(1,788,974 ) Cash dividends paid (717,462 ) (674,735 ) (1,438,138 )
(1,353,471 ) Other financing, net 1,535 3,101 68,401
52,169 Net cash used in financing activities (971,391
) (1,002,658 ) (2,808,795 ) (2,593,937 ) Effect of exchange rate
changes on cash and cash equivalents 20,830 (20,969 )
(25,891 ) (212,835 )
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 463,219 (35,211 ) (862,888 ) (895,116 )
CASH AND
CASH EQUIVALENTS, beginning of period 3,034,659
4,061,400 4,360,766 4,921,305
CASH AND CASH
EQUIVALENTS, end of period $ 3,497,878 $ 4,026,189
$ 3,497,878 $ 4,026,189
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160623005141/en/
AccentureRoxanne Taylor,
+1-917-452-5106roxanne.taylor@accenture.com
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