-- For the fourth quarter, revenues increase 5%
in U.S. dollars and 7.2% in local currency, to $11.1 billion; EPS
are $1.74, a 10% increase; free cash flow is $1.9 billion --
-- For full fiscal year, revenues increase 5%
in U.S. dollars and 8.5% in local currency, to $43.2 billion; EPS
are $7.36, compared with $6.34 last year, which included $0.40 in
charges related to tax law changes; EPS increase 9% from adjusted
EPS of $6.74 in fiscal 2018; free cash flow is $6.0 billion --
-- Record new bookings of $12.9 billion for
fourth quarter and $45.5 billion for full year --
-- Accenture declares its first quarterly cash
dividend of $0.80 per share, a 10 percent increase over the
equivalent quarterly rate last year --
-- For fiscal year 2020, Accenture expects
revenue growth of 5% to 8% in local currency and diluted EPS of
$7.62 to $7.84 --
Accenture (NYSE: ACN) reported very strong financial results for
the fourth quarter and full fiscal year ended Aug. 31, 2019.
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Accenture Q4 FY19 Infographic
For the fourth quarter, revenues
were $11.1 billion, an increase of 5 percent in U.S. dollars and
7.2 percent in local currency compared with the fourth quarter of
fiscal 2018. Diluted earnings per share were $1.74, a 10 percent
increase from $1.58 for the fourth quarter last year. Operating
margin for the fourth quarter of fiscal 2019 was 14.2 percent, an
expansion of 20 basis points. Operating cash flow was $2.1 billion
and free cash flow was $1.9 billion. New bookings were $12.9
billion.
For the full fiscal year, revenues
were $43.2 billion, an increase of 5 percent in U.S. dollars and
8.5 percent in local currency compared with fiscal 2018. Diluted
earnings per share were $7.36, compared with $6.34 in fiscal 2018,
which included $0.40 in charges related to tax law changes. Diluted
EPS for fiscal 2019 increased 9 percent from adjusted diluted EPS
of $6.74 in fiscal 2018. Operating margin for fiscal 2019 was 14.6
percent, an expansion of 20 basis points. Operating cash flow for
fiscal 2019 was $6.6 billion and free cash flow was $6.0 billion.
New bookings were $45.5 billion.
As previously disclosed, the company is moving from a
semi-annual to a quarterly schedule for dividend payments in fiscal
2020. Accenture’s Board of Directors has declared a quarterly cash
dividend of $0.80 per share. In fiscal 2019, the company paid
semi-annual cash dividends of $1.46 per share. The new quarterly
dividend represents a 10 percent increase over the equivalent
quarterly rate last year.
Julie Sweet, Accenture’s chief executive officer, said, “I am
proud that we have delivered another year of outstanding financial
results, meeting or exceeding all the objectives in our initial
business outlook for fiscal 2019. For the year, our record new
bookings of $45.5 billion and revenue growth of 8.5 percent in
local currency demonstrate excellent demand for our services, and
we gained significant market share. We also delivered very strong
profitability and returned a record $4.6 billion in cash to our
shareholders, while continuing to invest across the business. As we
look ahead to fiscal 2020, we will continue to be laser-focused on
creating value for our clients, being a magnet for the best people
in the industry and maximizing shareholder value.”
Financial Review
Effective Sept. 1, 2018, Accenture adopted new accounting
standards that affect the accounting for revenue and pension costs.
Prior-period results have been revised to reflect the fiscal 2019
presentation, and the revised fiscal 2018 and 2017 results are
available at investor.accenture.com.
Fourth Quarter Fiscal 2019
Revenues for the fourth quarter of fiscal 2019 were $11.06
billion, compared with $10.50 billion for the fourth quarter of
fiscal 2018, an increase of 5 percent in U.S. dollars and 7.2
percent in local currency, within the company’s guided range of
$10.85 billion to $11.15 billion. The foreign-exchange impact for
the quarter was approximately negative 2 percent, consistent with
the assumption provided in the company’s third-quarter earnings
release.
- Consulting revenues were $6.19 billion, an increase of 5
percent in U.S. dollars and 7 percent in local currency compared
with the fourth quarter of fiscal 2018.
- Outsourcing revenues were $4.87 billion, an increase of 6
percent in U.S. dollars and 8 percent in local currency compared
with the fourth quarter of fiscal 2018.
Diluted EPS for the fourth quarter were $1.74, compared with
$1.58 for the fourth quarter last year. The $0.16, or 10 percent,
increase in EPS reflects:
- an $0.11 increase from higher revenue and operating
results;
- a $0.04 increase from a lower effective tax rate; and
- a $0.01 increase from a lower share count.
Gross margin (gross profit as a percentage of revenues) for the
fourth quarter was 31.1 percent, compared with 30.8 percent for the
fourth quarter of fiscal 2018. Selling, general and administrative
(SG&A) expenses for the fourth quarter were $1.86 billion, or
16.9 percent of revenues, compared with $1.77 billion, or 16.8
percent of revenues, for the fourth quarter of fiscal 2018.
Operating income for the fourth quarter of fiscal 2019 was $1.57
billion, or 14.2 percent of revenues, compared with $1.47 billion,
or 14.0 percent of revenues, for the fourth quarter of fiscal 2018.
Operating margin for the fourth quarter of fiscal 2019 expanded 20
basis points.
The company’s effective tax rate for the fourth quarter was 26.6
percent, compared with 28.0 percent for the fourth quarter of
fiscal 2018.
Net income for the quarter was $1.15 billion, compared with
$1.05 billion for the fourth quarter last year.
Operating cash flow for the fourth quarter was $2.12 billion,
and property and equipment additions were $241 million. Free cash
flow, defined as operating cash flow net of property and equipment
additions, was $1.87 billion. For the same period of fiscal 2018,
operating cash flow was $2.11 billion, property and equipment
additions were $179 million, and free cash flow was $1.93
billion.
Days services outstanding, or DSOs, were 40 days at Aug. 31,
2019, compared with 39 days at Aug. 31, 2018.
Accenture’s total cash balance at Aug. 31, 2019 was $6.1
billion, compared with $5.1 billion at Aug. 31, 2018.
New Bookings
New bookings for the fourth quarter were $12.9 billion and
reflect a negative 2 percent foreign-exchange impact compared with
new bookings in the fourth quarter of fiscal 2018.
- Consulting new bookings were $6.1 billion, or 47 percent of
total new bookings.
- Outsourcing new bookings were $6.8 billion, or 53 percent of
total new bookings.
Revenues by Operating Group
Revenues by operating group for the fourth quarter were as
follows:
- Communications, Media & Technology: $2.22 billion, compared
with $2.14 billion for the fourth quarter of fiscal 2018, an
increase of 4 percent in U.S. dollars and 5 percent in local
currency.
- Financial Services: $2.12 billion, compared with $2.09 billion
for the fourth quarter of fiscal 2018, an increase of 2 percent in
U.S. dollars and 4 percent in local currency.
- Health & Public Service: $1.88 billion, compared with $1.76
billion for the fourth quarter of fiscal 2018, an increase of 7
percent in U.S. dollars and 8 percent in local currency.
- Products: $3.09 billion, compared with $2.92 billion for the
fourth quarter of fiscal 2018, an increase of 6 percent in U.S.
dollars and 8 percent in local currency.
- Resources: $1.73 billion, compared with $1.59 billion for the
fourth quarter of fiscal 2018, an increase of 9 percent in U.S.
dollars and 12 percent in local currency.
Revenues by Geographic Region
Revenues by geographic region for the fourth quarter were as
follows:
- North America: $5.23 billion, compared with $4.86 billion for
the fourth quarter of fiscal 2018, an increase of 8 percent in both
U.S. dollars and local currency.
- Europe: $3.57 billion, compared with $3.57 billion for the
fourth quarter of fiscal 2018, flat in U.S. dollars and an increase
of 4 percent in local currency.
- Growth Markets: $2.26 billion, compared with $2.08 billion for
the fourth quarter of fiscal 2018, an increase of 9 percent in U.S.
dollars and 12 percent in local currency.
Full Year Fiscal 2019
Revenues for the full 2019 fiscal year were $43.2 billion,
compared with $41.0 billion for fiscal 2018, an increase of 5
percent in U.S. dollars and 8.5 percent in local currency. Revenues
for fiscal 2019 reflect a foreign-exchange impact of approximately
negative 3 percent compared with fiscal 2018.
- Consulting revenues were $24.2 billion, an increase of 5
percent in U.S. dollars and 8 percent in local currency compared
with fiscal 2018.
- Outsourcing revenues were $19.0 billion, an increase of 6
percent in U.S. dollars and 9 percent in local currency compared
with fiscal 2018.
Diluted EPS for the full 2019 fiscal year were $7.36, compared
with $6.34 for fiscal 2018, which included $0.40 in charges related
to tax law changes. Excluding these charges, diluted EPS for fiscal
2018 were $6.74. The $0.62, or 9 percent, increase in EPS on an
adjusted basis in fiscal 2019 reflects:
- a $0.48 increase from higher revenue and operating results;
and
- a $0.05 increase from a lower effective tax rate;
- a $0.05 increase from a lower share count; and
- a $0.04 increase from lower non-operating expense.
Gross margin (gross profit as a percentage of revenues) for
fiscal 2019 was 30.8 percent, compared with 30.5 percent for fiscal
2018. Selling, general and administrative (SG&A) expenses for
the full fiscal year were $7.01 billion, or 16.2 percent of
revenues, compared with $6.59 billion, or 16.1 percent of revenues,
for fiscal 2018.
Operating income for the full fiscal year was $6.31 billion, or
14.6 percent of revenues, compared with $5.90 billion, or 14.4
percent of revenues in fiscal 2018.
Accenture’s annual effective tax rate for fiscal 2019 was 22.5
percent, compared with 27.4 percent in fiscal 2018. Excluding the
impact of the charges related to tax law changes, the effective tax
rate in fiscal 2018 was 23.0 percent.
Net income for the full fiscal year was $4.85 billion, compared
with $4.21 billion for fiscal 2018. Excluding the $258 million
impact of the charges related to tax law changes, net income in
fiscal 2018 was $4.47 billion.
For the full 2019 fiscal year, operating cash flow was $6.63
billion and property and equipment additions were $599 million.
Free cash flow, defined as operating cash flow net of property and
equipment additions, was $6.03 billion. For fiscal 2018, operating
cash flow was $6.03 billion, property and equipment additions were
$619 million, and free cash flow was $5.41 billion.
New Bookings
New bookings for the full fiscal year were $45.5 billion and
reflect a negative 3 percent foreign-exchange impact compared with
new bookings in fiscal 2018.
- Consulting new bookings were $24.7 billion, or 54 percent of
total new bookings.
- Outsourcing new bookings were $20.8 billion, or 46 percent of
total new bookings.
Revenues by Operating Group
Revenues by operating group for the full fiscal year were as
follows:
- Communications, Media & Technology: $8.76 billion, compared
with $8.23 billion for fiscal 2018, an increase of 6 percent in
U.S. dollars and 9 percent in local currency.
- Financial Services: $8.49 billion, compared with $8.57 billion
for fiscal 2018, a decrease of 1 percent in U.S. dollars and an
increase of 3 percent in local currency.
- Health & Public Service: $7.16 billion, compared with $6.88
billion for fiscal 2018, an increase of 4 percent in U.S. dollars
and 6 percent in local currency.
- Products: $12.00 billion, compared with $11.34 billion for
fiscal 2018, an increase of 6 percent in U.S. dollars and 9 percent
in local currency.
- Resources: $6.77 billion, compared with $5.94 billion for
fiscal 2018, an increase of 14 percent in U.S. dollars and 18
percent in local currency.
Revenues by Geographic Region
Revenues by geographic region for the full fiscal year were as
follows:
- North America: $19.99 billion, compared with $18.46 billion for
fiscal 2018, an increase of 8 percent in U.S. dollars and 9 percent
in local currency.
- Europe: $14.68 billion, compared with $14.63 billion for fiscal
2018, flat in U.S. dollars and an increase of 5 percent in local
currency.
- Growth Markets: $8.55 billion, compared with $7.91 billion for
fiscal 2018, an increase of 8 percent in U.S. dollars and 14
percent in local currency.
Returning Cash to
Shareholders
Accenture continues to return cash to shareholders through cash
dividends and share repurchases. In fiscal 2019, the company
returned $4.56 billion to shareholders, including $1.86 billion in
cash dividends and $2.69 billion in share repurchases.
Dividend
As previously disclosed, the company is moving from a
semi-annual to a quarterly schedule for dividend payments in fiscal
2020. Accenture plc has declared its first quarterly cash dividend
of $0.80 per share for shareholders of record at the close of
business on Oct. 17, 2019. This dividend is payable on Nov. 15,
2019.
In fiscal 2019, the company paid semi-annual cash dividends of
$1.46 per share, equivalent to quarterly payments of $0.73 per
share. The new quarterly dividend of $0.80 per share represents a
10 percent increase over the equivalent quarterly rate in fiscal
2019.
Share Repurchase Activity
During the fourth quarter of fiscal 2019, Accenture repurchased
or redeemed 2.1 million shares, including 2.0 million shares
repurchased in the open market, for a total of $407 million. During
the full fiscal year 2019, Accenture repurchased or redeemed 16.6
million shares, including 13.7 million shares repurchased in the
open market, for a total of $2.69 billion.
At Aug. 31, 2019, Accenture had approximately 636 million total
shares outstanding.
Business Outlook
First Quarter Fiscal 2020
Accenture expects revenues for the first quarter of fiscal 2020
to be in the range of $10.9 billion to $11.2 billion, 5 percent to
8 percent growth in local currency, reflecting the company’s
assumption of a negative 2 percent foreign-exchange impact compared
with the first quarter of fiscal 2019.
Fiscal Year 2020
Accenture’s business outlook for the full 2020 fiscal year
assumes that the foreign-exchange impact on its results in U.S.
dollars will be negative 1 percent compared with fiscal 2019.
For fiscal 2020, the company expects revenue growth to be in the
range of 5 percent to 8 percent in local currency.
Accenture expects operating margin for the full fiscal year to
be in the range of 14.7 percent to 14.9 percent, an expansion of 10
to 30 basis points from fiscal 2019.
The company expects its annual effective tax rate to be in the
range of 23.5 percent to 25.5 percent.
The company expects diluted EPS to be in the range of $7.62 to
$7.84, or 4 percent to 7 percent growth.
For fiscal 2020, the company expects operating cash flow to be
in the range of $6.35 billion to $6.75 billion; property and
equipment additions to be $650 million; and free cash flow to be in
the range of $5.7 billion to $6.1 billion.
Conference Call and Webcast
Details
Accenture will host a conference call at 8:00 a.m. EDT today to
discuss its fourth-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, Sept. 26, and
continuing until Thursday, Sept. 26, 2019. 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 471195 from 10:30 a.m. EDT today, Sept. 26,
through Thursday, Dec. 19, 2019.
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 492,000 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. Accenture provides
full-year revenue guidance on a local-currency basis and not in
U.S. dollars because the impact of foreign exchange rate
fluctuations could vary significantly from the company’s stated
assumptions.
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: Accenture’s results of
operations could be adversely affected by volatile, negative or
uncertain economic and political conditions and the effects of
these conditions on the company’s clients’ businesses and levels of
business activity; Accenture’s business depends on generating and
maintaining ongoing, profitable client demand for the company’s
services and solutions including through the adaptation and
expansion of its services and solutions in response to ongoing
changes in technology and offerings, and a significant reduction in
such demand or an inability to respond to the changing
technological environment could materially affect the company’s
results of operations; if Accenture 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; Accenture could face legal,
reputational and financial risks if the company fails to protect
client and/or company data from security breaches or cyberattacks;
the markets in which Accenture operates are highly competitive, and
Accenture might not be able to compete effectively; changes in
Accenture’s level of taxes, as well as audits, investigations and
tax proceedings, or changes in tax laws or in their interpretation
or enforcement, could have a material adverse effect on the
company’s effective tax rate, results of operations, cash flows and
financial condition; Accenture’s profitability could materially
suffer if the company is unable to obtain favorable pricing for its
services and solutions, if the company is unable to remain
competitive, if its cost-management strategies are unsuccessful or
if it experiences delivery inefficiencies; Accenture’s results of
operations could be materially adversely affected by fluctuations
in foreign currency exchange rates; as a result of Accenture’s
geographically diverse operations and its growth strategy to
continue geographic expansion, the company is more susceptible to
certain risks; Accenture’s business could be materially adversely
affected if the company incurs legal liability; Accenture’s work
with government clients exposes the company to additional risks
inherent in the government contracting environment; if Accenture is
unable to manage the organizational challenges associated with its
size, the company might be unable to achieve its business
objectives; if Accenture does not successfully manage and develop
its relationships with key alliance partners or fails to anticipate
and establish new alliances in new technologies, the company’s
results of operations could be adversely affected; Accenture’s
ability to attract and retain business and employees may depend on
its reputation in the marketplace; Accenture might not be
successful at acquiring, investing in or integrating businesses,
entering into joint ventures or divesting businesses; if Accenture
is unable to protect its intellectual property rights or if
Accenture’s services or solutions infringe upon the intellectual
property rights of others or the company loses its ability to
utilize the intellectual property of others, its business could be
adversely affected; changes to accounting standards or in the
estimates and assumptions Accenture makes in connection with the
preparation of its consolidated financial statements could
adversely affect its financial results; many of Accenture’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;
Accenture’s results of operations and share price could be
adversely affected if it is unable to maintain effective internal
controls; Accenture might be unable to access additional capital on
favorable terms or at all and if the company raises equity capital,
it may dilute its shareholders’ ownership interest in the company;
Accenture 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 PLC
CONSOLIDATED CASH FLOWS
STATEMENTS
(In thousands of U.S.
dollars)
(Unaudited)
Three Months Ended
Year Ended
August 31, 2019
% of Revenues
August 31, 2018
% of Revenues
August 31, 2019
% of Revenues
August 31, 2018
% of Revenues
REVENUES:
Revenues (1)
$
11,055,650
100.0
%
$
10,503,987
100.0
%
$
43,215,013
100.0
%
$
40,992,534
100.0
%
OPERATING EXPENSES:
Cost of services (1)
7,621,034
68.9
%
7,266,331
69.2
%
29,900,325
69.2
%
28,499,170
69.5
%
Sales and marketing (1)
1,173,240
10.6
%
1,089,639
10.4
%
4,447,456
10.3
%
4,196,201
10.2
%
General and administrative costs (1)
689,883
6.2
%
678,333
6.5
%
2,562,158
5.9
%
2,398,384
5.9
%
Total operating expenses
9,484,157
9,034,303
36,909,939
35,093,755
OPERATING INCOME
1,571,493
14.2
%
1,469,684
14.0
%
6,305,074
14.6
%
5,898,779
14.4
%
Interest income
27,394
22,755
87,508
56,337
Interest expense
(7,491
)
(5,153
)
(22,963
)
(19,539
)
Other (expense) income, net (1)
(30,644
)
(30,672
)
(117,822
)
(127,484
)
INCOME BEFORE INCOME TAXES
1,560,752
14.1
%
1,456,614
13.9
%
6,251,797
14.5
%
5,808,093
14.2
%
Provision for income taxes
415,204
408,243
1,405,556
1,593,499
NET INCOME
1,145,548
10.4
%
1,048,371
10.0
%
4,846,241
11.2
%
4,214,594
10.3
%
Net income attributable to noncontrolling
interests in Accenture Holdings plc and Accenture Canada Holdings
Inc.
(1,481
)
(1,532
)
(6,694
)
(95,063
)
Net income attributable to noncontrolling
interests – other (2)
(13,640
)
(17,315
)
(60,435
)
(59,624
)
NET INCOME ATTRIBUTABLE TO ACCENTURE
PLC
$
1,130,427
10.2
%
$
1,029,524
9.8
%
$
4,779,112
11.1
%
$
4,059,907
9.9
%
CALCULATION OF EARNINGS PER
SHARE:
Net income attributable to Accenture
plc
$
1,130,427
$
1,029,524
$
4,779,112
$
4,059,907
Net income attributable to noncontrolling
interests in Accenture Holdings plc and Accenture Canada Holdings
Inc. (3)
1,481
1,532
6,694
95,063
Net income for diluted earnings per share
calculation
$
1,131,908
$
1,031,056
$
4,785,806
$
4,154,970
EARNINGS PER SHARE:
-Basic
$
1.77
$
1.61
$
7.49
$
6.46
-Diluted
$
1.74
$
1.58
$
7.36
$
6.34
WEIGHTED AVERAGE SHARES:
-Basic
637,049,388
640,575,241
638,098,125
628,451,742
-Diluted
650,523,417
653,960,751
650,204,873
655,296,150
Cash dividends per share
$
—
$
—
$
2.92
$
2.66
_______________
(1)
Prior to fiscal year 2019, we presented Revenues before
reimbursements (net revenues), which excluded reimbursements for
travel and other out of-pocket expenses. In connection with the
fiscal year 2019 adoption of the Financial Accounting Standards
Board Accounting Standards Update (“ASU”) No. 2014-09: “Revenue
from Contracts with Customers” (Topic 606), the Net revenues and
reimbursements lines were eliminated. Effective September 1, 2018,
we also adopted ASU No 2017-07: “Compensation Retirement Benefits”
(Topic 715) which required us to reclassify certain components of
pension service costs from Operating expenses to Non-operating
expenses. Prior period amounts have been revised to conform with
the current period presentation.
(2)
Comprised primarily of
noncontrolling interest attributable to the noncontrolling
shareholders of Avanade, Inc.
(3)
Diluted earnings per share assumes the exchange of all Accenture
Canada Holdings Inc. exchangeable shares for Accenture plc Class A
ordinary shares on a one-for-one basis and the redemption of all
Accenture Holdings plc ordinary shares owned by holders of
noncontrolling interests prior to March 13, 2018, when these were
redeemed for Accenture class A ordinary shares. 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 PLC
SUMMARY OF REVENUES
(In thousands of U.S.
dollars)
(Unaudited)
Percent Increase Local
Currency
Percent Increase U.S.
Dollars
Three Months Ended
August 31, 2019
August 31, 2018 (1)
OPERATING GROUPS
Communications, Media & Technology
$
2,223,931
$
2,143,507
4
%
5
%
Financial Services
2,124,342
2,089,660
2
4
Health & Public Service
1,877,423
1,755,758
7
8
Products
3,092,346
2,920,481
6
8
Resources
1,731,833
1,590,006
9
12
Other
5,775
4,575
n/m
n/m
Total
$
11,055,650
$
10,503,987
5
%
7.2
%
GEOGRAPHY
North America
$
5,228,090
$
4,859,263
8
%
8
%
Europe
3,568,701
3,568,977
—
4
Growth Markets
2,258,859
2,075,747
9
12
Total
$
11,055,650
$
10,503,987
5
%
7.2
%
TYPE OF WORK
Consulting
$
6,186,461
$
5,894,869
5
%
7
%
Outsourcing
4,869,189
4,609,118
6
8
Total
$
11,055,650
$
10,503,987
5
%
7.2
%
Percent Increase (Decrease)
Local Currency
Percent Increase (Decrease)
U.S. Dollars
Year Ended
August 31, 2019
August 31, 2018 (1)
OPERATING GROUPS
Communications, Media & Technology
$
8,757,250
$
8,229,842
6
%
9
%
Financial Services
8,493,819
8,565,695
(1
)
3
Health & Public Service
7,160,787
6,877,779
4
6
Products
12,004,934
11,337,863
6
9
Resources
6,771,976
5,942,012
14
18
Other
26,247
39,343
n/m
n/m
Total
$
43,215,013
$
40,992,534
5
%
8.5
%
GEOGRAPHY
North America
$
19,986,136
$
18,460,395
8
%
9
%
Europe
14,680,739
14,625,769
—
5
Growth Markets
8,548,138
7,906,370
8
14
Total
$
43,215,013
$
40,992,534
5
%
8.5
%
TYPE OF WORK
Consulting
$
24,177,428
$
22,978,798
5
%
8
%
Outsourcing
19,037,585
18,013,736
6
9
Total
$
43,215,013
$
40,992,534
5
%
8.5
%
_______________ n/m = not meaningful
(1)
Effective September 1, 2018, we adopted ASU No. 2014-09 and
eliminated our net revenues presentation. Prior period amounts have
been revised to conform with the current period presentation. In
addition, we updated operating group results for fiscal 2018 to
include an acquisition previously categorized within Other.
ACCENTURE PLC
OPERATING INCOME BY OPERATING
GROUP
(In thousands of U.S.
dollars)
(Unaudited)
Three Months Ended
August 31, 2019
August 31, 2018 (1)
Operating Income
Operating Margin
Operating Income
Operating Margin
Increase (Decrease)
Communications, Media & Technology
$
374,402
17
%
$
378,818
18
%
$
(4,416
)
Financial Services
261,159
12
296,098
14
(34,939
)
Health & Public Service
199,686
11
163,791
9
35,895
Products
447,842
14
416,384
14
31,458
Resources
288,404
17
214,593
13
73,811
Total
$
1,571,493
14.2
%
$
1,469,684
14.0
%
$
101,809
Year Ended
August 31, 2019
August 31, 2018 (1)
Operating Income
Operating Margin
Operating Income
Operating Margin
Increase (Decrease)
Communications, Media & Technology
$
1,554,820
18
%
$
1,379,914
17
%
$
174,906
Financial Services
1,237,918
15
1,365,427
16
(127,509
)
Health & Public Service
738,974
10
765,838
11
(26,864
)
Products
1,719,881
14
1,663,852
15
56,029
Resources
1,053,481
16
723,748
12
329,733
Total
$
6,305,074
14.6
%
$
5,898,779
14.4
%
$
406,295
_______________
(1)
Effective September 1, 2018, we adopted ASU No. 2017-07, which
required us to reclassify certain components of pension service
costs from Operating expenses to Non-operating expenses. Prior
period amounts have been revised to conform with the current period
presentation.
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)
Year Ended
August 31, 2019
August 31, 2018
As Reported (GAAP)
As Reported (GAAP)
Tax Law Changes (1)
Adjusted (Non-GAAP)
Income before income taxes
$
6,251,797
$
5,808,093
$
—
$
5,808,093
Provision for income taxes
1,405,556
1,593,499
(258,498
)
1,335,001
Net income
$
4,846,241
$
4,214,594
$
258,498
$
4,473,092
Effective tax rate
22.5
%
27.4
%
23.0
%
Diluted earnings per share
$
7.36
$
6.34
$
0.40
$
6.74
_______________
(1)
Represents the tax expense associated with tax law changes.
ACCENTURE PLC
CONSOLIDATED BALANCE
SHEETS
(In thousands of U.S.
dollars)
August 31, 2019
August 31, 2018
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
6,126,853
$
5,061,360
Short-term investments
3,313
3,192
Receivables and contract assets (1)
8,095,071
7,496,368
Other current assets
1,225,364
1,024,639
Total current assets
15,450,601
13,585,559
NON-CURRENT ASSETS:
Contract assets (1)
71,002
23,036
Investments
240,313
215,532
Property and equipment, net
1,391,166
1,264,020
Goodwill
6,205,550
5,383,012
Other non-current assets
6,431,248
3,977,924
Total non-current assets
14,339,279
10,863,524
TOTAL ASSETS
$
29,789,880
$
24,449,083
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and bank
borrowings
$
6,411
$
5,337
Accounts payable
1,646,641
1,348,802
Deferred revenues
3,188,835
2,837,682
Accrued payroll and related benefits
4,890,542
4,569,172
Other accrued liabilities
1,329,467
1,390,758
Total current liabilities
11,061,896
10,151,751
NON-CURRENT LIABILITIES:
Long-term debt
16,247
19,676
Other non-current liabilities
3,884,046
3,553,068
Total non-current liabilities
3,900,293
3,572,744
TOTAL ACCENTURE PLC SHAREHOLDERS’
EQUITY
14,408,739
10,364,753
NONCONTROLLING INTERESTS
418,952
359,835
TOTAL SHAREHOLDERS’ EQUITY
14,827,691
10,724,588
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
29,789,880
$
24,449,083
_____________
(1)
Effective September 1, 2018 we adopted ASU No. 2014-09, which
resulted in the reclassification of Unbilled services into
Receivables and contract assets and Deferred revenues. Prior period
amounts have been revised to conform with the current period
presentation.
ACCENTURE PLC
CONSOLIDATED CASH FLOWS
STATEMENTS
(In thousands of U.S.
dollars)
(Unaudited)
Three Months Ended
Year Ended
August 31, 2019
August 31, 2018
August 31, 2019
August 31, 2018
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income
$
1,145,548
$
1,048,371
$
4,846,241
$
4,214,594
Depreciation, amortization and asset
impairments
240,168
235,090
892,760
926,776
Share-based compensation expense
236,301
225,082
1,093,253
976,908
Change in assets and liabilities/other,
net
494,236
600,715
(205,301
)
(91,587
)
Net cash provided by (used in) operating
activities
2,116,253
2,109,258
6,626,953
6,026,691
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of property and equipment
(241,260
)
(179,383
)
(599,009
)
(619,187
)
Purchases of businesses and investments,
net of cash acquired
(137,156
)
(201,144
)
(1,193,071
)
(657,546
)
Proceeds from sale of businesses and
investments, net of cash transferred
36
5,872
27,951
20,197
Other investing, net
2,512
(313
)
8,553
6,932
Net cash provided by (used in) investing
activities
(375,868
)
(374,968
)
(1,755,576
)
(1,249,604
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of ordinary
shares
93,992
86,316
848,445
753,146
Purchases of shares
(406,527
)
(551,824
)
(2,691,114
)
(2,639,094
)
Cash dividends paid
—
—
(1,864,353
)
(1,708,724
)
Other financing, net
(38,483
)
(66,108
)
(60,149
)
(114,356
)
Net cash provided by (used in) financing
activities
(351,018
)
(531,616
)
(3,767,171
)
(3,709,028
)
Effect of exchange rate changes on cash
and cash equivalents
(31,672
)
(70,159
)
(38,713
)
(133,559
)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
1,357,695
1,132,515
1,065,493
934,500
CASH AND CASH EQUIVALENTS, beginning of
period
4,769,158
3,928,845
5,061,360
4,126,860
CASH AND CASH EQUIVALENTS, end of
period
$
6,126,853
$
5,061,360
$
6,126,853
$
5,061,360
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190926005187/en/
Stacey Jones Accenture Media Relations +1 (917) 452-6561
stacey.jones@accenture.com Angie Park Accenture Investor Relations
+1 (703) 947-2401 angie.park@accenture.com
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