-- For the fourth quarter, revenues increase
24% in U.S. dollars and 21% in local currency, to $13.4 billion;
EPS increase 11% to $2.20 from $1.99 last year, which included
$0.29 in gains on an investment; EPS increase 29% from adjusted EPS
of $1.70 last year --
-- For full fiscal year, revenues are a record
$50.5 billion, an increase of 14% in U.S. dollars and 11% in local
currency; operating margin expands 40 basis points to 15.1%; EPS
increase 16% to $9.16 from $7.89 last year, which include $0.36 and
$0.43, respectively, in gains on an investment; excluding these
gains, adjusted EPS increase 18% to $8.80 in fiscal 2021 from $7.46
in fiscal 2020 --
-- Free cash flow is $2.2 billion for fourth
quarter and $8.4 billion for full year --
-- New bookings are $15.0 billion for fourth
quarter and a record $59.3 billion for full year, a 20% increase in
U.S. dollars over full-year fiscal 2020 new bookings --
-- Company increases quarterly cash dividend
10%, to $0.97 per share; Board of Directors approves $3.0 billion
of additional share repurchase authority --
-- For fiscal year 2022, Accenture expects
revenue growth of 12% to 15% in local currency and GAAP diluted EPS
of $9.90 to $10.18, an increase of 13% to 16% from adjusted EPS for
fiscal 2021 --
Accenture (NYSE: ACN) reported financial results for the fourth
quarter and full fiscal year ended Aug. 31, 2021.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20210923005360/en/
Accenture Q4 FY21 Earnings Infographic
(Graphic: Business Wire)
For the fourth quarter, revenues
were $13.4 billion, an increase of 24% in U.S. dollars and 21% in
local currency compared with the fourth quarter of fiscal 2020.
Diluted earnings per share were $2.20, an 11% increase from $1.99
last year, which included $0.29 in gains on an investment. Diluted
EPS increased 29% from adjusted EPS of $1.70 for the fourth quarter
last year. Operating margin for the fourth quarter of fiscal 2021
was 14.6%, an expansion of 30 basis points from the fourth quarter
of fiscal 2020. Operating cash flow was $2.4 billion and free cash
flow was $2.2 billion. New bookings were $15.0 billion.
For the full fiscal year, revenues
were $50.5 billion, an increase of 14% in U.S. dollars and 11% in
local currency compared with fiscal 2020. Diluted earnings per
share increased 16% to $9.16 from $7.89 last year, including gains
on an investment of $0.36 and $0.43, respectively. Excluding these
gains, adjusted diluted EPS for fiscal 2021 were $8.80, an 18%
increase from $7.46 in fiscal 2020. Operating margin for fiscal
2021 was 15.1%, an expansion of 40 basis points. Operating cash
flow for fiscal 2021 was $9.0 billion and free cash flow was $8.4
billion. New bookings were a record $59.3 billion.
Julie Sweet, Accenture’s Chair & CEO, said, “We are very
proud of our outstanding fiscal 2021 financial performance,
reflecting growth significantly above the market and strong
momentum heading into fiscal 2022. Our results reflect the
dedication and hard work of our 624,000 incredible people, who are
laser-focused on creating tangible value for our clients,
innovating with our ecosystem, and being the trusted partner of
choice on our clients’ transformation journeys. We delivered these
results while investing in our people and in the capabilities our
clients need, now and in the future, and at the same time making
progress on our sustainability goals — from progress in inclusion
and diversity, to the use of renewable energy now at 50% across the
globe, to supporting our communities during these challenging
times. We measure our success by this 360° value creation.”
Financial Review
Fourth Quarter Fiscal 2021
Revenues for the fourth quarter of fiscal 2021 were $13.42
billion, compared with $10.84 billion for the fourth quarter of
fiscal 2020, an increase of 24% in U.S. dollars and 21% in local
currency. Revenues for the quarter reflect a foreign-exchange
impact of approximately positive 3%, compared with the positive 4%
impact previously assumed. Adjusting for the actual
foreign-exchange impact, the company’s guided range for quarterly
revenues was approximately $13.0 billion to $13.4 billion.
Accenture’s fourth-quarter fiscal 2021 revenues were slightly above
this adjusted range.
- Consulting revenues were $7.31 billion, an increase of 29% in
U.S. dollars and 25% in local currency compared with the fourth
quarter of fiscal 2020.
- Outsourcing revenues were $6.11 billion, an increase of 19% in
U.S. dollars and 16% in local currency compared with the fourth
quarter of fiscal 2020.
GAAP diluted EPS for the fourth quarter were $2.20, an increase
of $0.21 or 11% from $1.99 for the fourth quarter last year, which
included gains on an investment of $219 million, pre-tax, or $0.29
per share. EPS for the quarter increased $0.50, or 29%, from
adjusted EPS of $1.70 for the fourth quarter last year. The $0.50
increase in EPS on an adjusted basis reflects:
- a $0.46 increase from higher revenue and operating
results;
- a $0.10 increase from a lower effective tax rate; and
- a $0.01 increase from a lower share count;
partially offset by
- a $0.07 decrease from higher non-operating expenses.
Gross margin (gross profit as a percentage of revenues) for the
fourth quarter was 33.3%, compared with 31.8% for the fourth
quarter of fiscal 2020. Selling, general and administrative
(SG&A) expenses for the fourth quarter were $2.51 billion, or
18.7% of revenues, compared with $1.90 billion, or 17.5% of
revenues, for the fourth quarter of fiscal 2020.
Operating income for the fourth quarter of fiscal 2021 was $1.96
billion, or 14.6% of revenues, compared with $1.54 billion, or
14.3% of revenues, for the fourth quarter of fiscal 2020. Operating
margin for the fourth quarter of fiscal 2021 expanded 30 basis
points.
The company’s effective tax rate for the fourth quarter was
25.0%, compared with 26.8% for the fourth quarter of fiscal 2020.
Excluding the impact of gains on an investment, the effective tax
rate was 28.4% for the fourth quarter last year.
Net income for the quarter was $1.44 billion, compared with
$1.31 billion for the fourth quarter of fiscal 2020. Excluding the
$185 million after-tax impact of gains on an investment, net income
was $1.12 billion for the fourth quarter last year.
Operating cash flow for the fourth quarter was $2.44 billion,
and property and equipment additions were $236 million. Free cash
flow, defined as operating cash flow net of property and equipment
additions, was $2.20 billion. For the same period of fiscal 2020,
operating cash flow was $3.16 billion, property and equipment
additions were $189 million, and free cash flow was $2.97
billion.
Days services outstanding, or DSOs, were 38 days at Aug. 31,
2021, compared with 35 days at Aug. 31, 2020.
Accenture’s total cash balance at Aug. 31, 2021 was $8.2
billion, compared with $8.4 billion at Aug. 31, 2020.
New Bookings
New bookings for the fourth quarter were $15.0 billion, an
increase of 7% in U.S. dollars and 5% in local currency from the
fourth quarter last year.
- Consulting new bookings were $8.0 billion, or 53% of total new
bookings.
- Outsourcing new bookings were $7.1 billion, or 47% of total new
bookings.
Revenues by Geographic Market
Revenues by geographic market for the fourth quarter were as
follows:
- North America: $6.39 billion, an increase of 23% in U.S.
dollars and 22% in local currency compared with the fourth quarter
of fiscal 2020.
- Europe: $4.30 billion, an increase of 26% in U.S. dollars and
18% in local currency compared with the fourth quarter of fiscal
2020.
- Growth Markets: $2.73 billion, an increase of 23% in U.S.
dollars and 21% in local currency compared with the fourth quarter
of fiscal 2020.
Revenues by Industry Group
Revenues by industry group for the fourth quarter were as
follows:
- Communications, Media & Technology: $2.77 billion, an
increase of 26% in U.S. dollars and 23% in local currency compared
with the fourth quarter of fiscal 2020.
- Financial Services: $2.61 billion, an increase of 24% in U.S.
dollars and 20% in local currency compared with the fourth quarter
of fiscal 2020.
- Health & Public Service: $2.50 billion, an increase of 20%
in U.S. dollars and 18% in local currency compared with the fourth
quarter of fiscal 2020.
- Products: $3.73 billion, an increase of 29% in U.S. dollars and
25% in local currency compared with the fourth quarter of fiscal
2020.
- Resources: $1.80 billion, an increase of 17% in U.S. dollars
and 13% in local currency compared with the fourth quarter of
fiscal 2020.
Full Year Fiscal 2021
Revenues for the full 2021 fiscal year were $50.5 billion,
compared with $44.3 billion for fiscal 2020, an increase of 14% in
U.S. dollars and 11% in local currency. Revenues for fiscal 2021
reflect a foreign-exchange impact of approximately positive 3%
compared with fiscal 2020.
- Consulting revenues were $27.3 billion, an increase of 13% in
U.S. dollars and 9% in local currency compared with fiscal
2020.
- Outsourcing revenues were $23.2 billion, an increase of 15% in
U.S. dollars and 13% in local currency compared with fiscal
2020.
GAAP diluted EPS for the full 2021 fiscal year were $9.16, an
increase of $1.27 or 16% from $7.89 for fiscal 2020. Excluding
pre-tax gains on an investment of $271 million, or $0.36 per share,
and $332 million, or $0.43 per share, respectively, adjusted EPS
were $8.80 in fiscal 2021 and $7.46 in fiscal 2020, an increase of
$1.34, or 18%. The $1.34 increase in EPS on an adjusted basis
reflects:
- a $1.30 increase from higher revenue and operating
results;
- a $0.09 increase from a lower effective tax rate; and
- a $0.03 increase from a lower share count;
partially offset by
- a $0.07 decrease from higher non-operating expenses; and
- a $0.01 decrease from higher income attributable to
noncontrolling interests.
Gross margin (gross profit as a percentage of revenues) for
fiscal 2021 was 32.4%, compared with 31.5% for fiscal 2020.
Selling, general and administrative (SG&A) expenses for the
full fiscal year were $8.74 billion, or 17.3% of revenues, compared
with $7.46 billion, or 16.8% of revenues, for fiscal 2020.
Operating income for the full fiscal year was $7.62 billion, or
15.1% of revenues, compared with $6.51 billion, or 14.7% of
revenues, in fiscal 2020.
Accenture’s annual effective tax rate for fiscal 2021 was 22.8%,
compared with 23.5% in fiscal 2020. Excluding the impact of gains
on an investment, the effective tax rate was 23.1% in fiscal 2021,
compared with 23.9% in fiscal 2020.
Net income for the full fiscal year was $5.99 billion, compared
with $5.19 billion in fiscal 2020. Excluding the after-tax impact
of gains on an investment of $230 million and $280 million,
respectively, net income was $5.76 billion in fiscal 2021, compared
with $4.91 billion in fiscal 2020.
For the full 2021 fiscal year, operating cash flow was $8.98
billion, and property and equipment additions were $580 million.
Free cash flow, defined as operating cash flow net of property and
equipment additions, was $8.40 billion. For fiscal 2020, operating
cash flow was $8.22 billion, property and equipment additions were
$599 million, and free cash flow was $7.62 billion.
New Bookings
New bookings for the full fiscal year were $59.3 billion, an
increase of 20% in U.S. dollars and 17% in local currency from
fiscal 2020.
- Consulting new bookings were $30.6 billion, or 52% of total new
bookings.
- Outsourcing new bookings were $28.7 billion, or 48% of total
new bookings.
Revenues by Geographic Market
Revenues by geographic market for the full fiscal year were as
follows:
- North America: $23.70 billion, an increase of 13% in U.S.
dollars and 12% in local currency compared with fiscal 2020.
- Europe: $16.75 billion, an increase of 16% in U.S. dollars and
8% in local currency compared with fiscal 2020.
- Growth Markets: $10.08 billion, an increase of 13% in U.S.
dollars and 11% in local currency compared with fiscal 2020.
Revenues by Industry Group
Revenues by industry group for the full fiscal year were as
follows:
- Communications, Media & Technology: $10.29 billion, an
increase of 16% in U.S. dollars and 14% in local currency compared
with fiscal 2020.
- Financial Services: $9.93 billion, an increase of 17% in U.S.
dollars and 13% in local currency compared with fiscal 2020.
- Health & Public Service: $9.50 billion, an increase of 18%
in U.S. dollars and 16% in local currency compared with fiscal
2020.
- Products: $13.95 billion, an increase of 14% in U.S. dollars
and 10% in local currency compared with fiscal 2020.
- Resources: $6.86 billion, an increase of 4% in U.S. dollars and
1% in local currency compared with fiscal 2020.
Returning Cash to
Shareholders
Accenture continues to return cash to shareholders through cash
dividends and share repurchases. In fiscal 2021, the company
returned $5.94 billion to shareholders, including $2.24 billion in
cash dividends and $3.70 billion in share repurchases.
Dividend
On Aug. 13, 2021, a quarterly cash dividend of $0.88 per share
was paid to shareholders of record at the close of business on July
15, 2021. These cash dividend payments totaled $558 million,
bringing dividend payments for the full year to $2.24 billion,
compared with $2.04 billion in fiscal 2020.
Accenture plc has declared a quarterly cash dividend of $0.97
per share, for shareholders of record at the close of business on
Oct. 14, 2021. This dividend, which is payable on Nov. 15, 2021,
represents a 10% increase over the company’s previous quarterly
dividend.
Share Repurchase Activity
During the fourth quarter of fiscal 2021, Accenture repurchased
or redeemed 3.0 million shares, including 2.9 million shares
repurchased in the open market, for a total of $915 million. This
brought total share repurchases and redemptions for the full fiscal
year to 14.0 million shares, including 11.3 million shares
repurchased in the open market, for a total of $3.70 billion.
The company’s Board of Directors has approved $3.0 billion in
additional share repurchase authority, bringing Accenture’s total
outstanding authority to approximately $6.3 billion.
At Aug. 31, 2021, Accenture had approximately 633 million total
shares outstanding.
Business Outlook
First Quarter Fiscal 2022
Accenture expects revenues for the first quarter of fiscal 2022
to be in the range of $13.90 billion to $14.35 billion, an increase
of 18% to 22% in local currency, reflecting the company’s
assumption of a positive 0.5% foreign-exchange impact compared with
the first quarter of fiscal 2021.
Fiscal Year 2022
Accenture’s business outlook for the full 2022 fiscal year
assumes that the foreign-exchange impact on its results in U.S.
dollars will be approximately negative 0.5% compared with fiscal
2021.
For fiscal 2022, the company expects revenue growth to be in the
range of 12% to 15% in local currency.
Accenture expects operating margin for the full fiscal year to
be in the range of 15.2% to 15.4%, an expansion of 10 to 30 basis
points from fiscal 2021.
The company expects its annual effective tax rate to be in the
range of 23.0% to 25.0%.
The company expects GAAP diluted EPS to be in the range of $9.90
to $10.18, an increase of 13% to 16% over adjusted FY21 diluted
EPS.
For fiscal 2022, the company expects operating cash flow to be
in the range of $8.2 billion to $8.7 billion; property and
equipment additions to be $700 million; and free cash flow to be in
the range of $7.5 billion to $8.0 billion.
The company expects to return at least $6.3 billion in cash to
shareholders through dividends and share repurchases.
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 (877) 692-8955 [+1 (234) 720-6979 outside the United
States, Puerto Rico and Canada] and enter access code 6450548
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 11:00 a.m. EDT today, Sept. 23, and
continuing through Wednesday, Dec. 15, 2021. The replay will also
be available via telephone by dialing +1 (866) 207-1041 [+1 (402)
970-0847 outside the United States, Puerto Rico and Canada] and
entering access code 6704907 from 11:00 a.m. EDT today, Sept. 23,
through Wednesday, Dec. 15, 2021.
About Accenture
Accenture is a global professional services company with leading
capabilities in digital, cloud and security. Combining unmatched
experience and specialized skills across more than 40 industries,
we offer Strategy and Consulting, Interactive, Technology and
Operations services — all powered by the world’s largest network of
Advanced Technology and Intelligent Operations centers. Our 624,000
people deliver on the promise of technology and human ingenuity
every day, serving clients in more than 120 countries. We embrace
the power of change to create value and shared success for our
clients, people, shareholders, partners and communities. 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. Many
of the following risks, uncertainties and other factors identified
below are, and will be, amplified by the COVID-19 pandemic. These
risks include, without limitation, risks that: Accenture’s results
of operations have been significantly adversely affected and could
in the future be materially adversely impacted by the COVID-19
pandemic; Accenture’s results of operations have been, and may in
the future 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 evolving
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 incidents or cyberattacks;
the markets in which Accenture operates are highly competitive, and
Accenture might not be able to compete effectively; 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 or fail to satisfy certain agreed-upon targets or
specific service levels; 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 ability to attract and retain business and employees
may depend on its reputation in the marketplace; as a result of
Accenture’s geographically diverse operations and its growth
strategy to continue to expand in its key markets around the world,
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; Accenture’s results of operations could be
materially adversely affected by fluctuations in foreign currency
exchange rates; 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 might not be successful at acquiring,
investing in or integrating businesses, entering into joint
ventures or divesting businesses; if Accenture is unable to protect
or enforce 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; Accenture’s results of operations and share price could
be adversely affected if it is unable to maintain effective
internal controls; 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; 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 Income
Statements
(In thousands of U.S. dollars,
except share and per share amounts)
(Unaudited)
Three Months Ended
Year Ended
August 31, 2021
% of Revenues
August 31, 2020
% of Revenues
August 31, 2021
% of Revenues
August 31, 2020
% of Revenues
REVENUES:
Revenues
$
13,419,284
100.0
%
$
10,835,271
100.0
%
$
50,533,389
100.0
%
$
44,327,039
100.0
%
OPERATING EXPENSES:
Cost of services
8,953,068
66.7
%
7,394,731
68.2
%
34,169,261
67.6
%
30,350,881
68.5
%
Sales and marketing
1,514,969
11.3
%
1,153,949
10.6
%
5,288,237
10.5
%
4,625,929
10.4
%
General and administrative costs
992,558
7.4
%
741,888
6.8
%
3,454,362
6.8
%
2,836,585
6.4
%
Total operating expenses
11,460,595
9,290,568
42,911,860
37,813,395
OPERATING INCOME
1,958,689
14.6
%
1,544,703
14.3
%
7,621,529
15.1
%
6,513,644
14.7
%
Interest income
9,722
7,855
33,365
69,331
Interest expense
(12,977)
(14,069)
(59,492)
(33,071)
Other (expense) income, net
(37,629)
244,866
165,714
224,427
INCOME BEFORE INCOME TAXES
1,917,805
14.3
%
1,783,355
16.5
%
7,761,116
15.4
%
6,774,331
15.3
%
Income tax expense
480,382
477,931
1,770,571
1,589,018
NET INCOME
1,437,423
10.7
%
1,305,424
12.0
%
5,990,545
11.9
%
5,185,313
11.7
%
Net income attributable to noncontrolling
interest in Accenture Canada Holdings Inc.
(1,538)
(1,534)
(6,539)
(6,325)
Net income attributable to noncontrolling
interests – other (1)
(19,637)
(15,961)
(77,197)
(71,149)
NET INCOME ATTRIBUTABLE TO ACCENTURE
PLC
$
1,416,248
10.6
%
$
1,287,929
11.9
%
$
5,906,809
11.7
%
$
5,107,839
11.5
%
CALCULATION OF EARNINGS PER
SHARE:
Net income attributable to Accenture
plc
$
1,416,248
$
1,287,929
$
5,906,809
$
5,107,839
Net income attributable to noncontrolling
interest in Accenture Canada Holdings Inc. (2)
1,538
1,534
6,539
6,325
Net income for diluted earnings per
share calculation
$
1,417,786
$
1,289,463
$
5,913,348
$
5,114,164
EARNINGS PER SHARE:
Basic
$
2.24
$
2.03
$
9.31
$
8.03
Diluted
$
2.20
$
1.99
$
9.16
$
7.89
WEIGHTED AVERAGE SHARES:
Basic
633,546,144
635,887,742
634,745,073
636,299,913
Diluted
645,287,973
647,867,307
645,909,042
647,797,003
Cash dividends per share
$
0.88
$
0.80
$
3.52
$
3.20
(1) Comprised primarily of noncontrolling
interest attributable to the noncontrolling shareholders of
Avanade, Inc.
(2) 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.
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 U.S.
Dollars
Percent Increase Local
Currency
Three Months Ended
August 31, 2021
August 31, 2020
GEOGRAPHIC MARKETS
North America
$
6,388,827
$
5,197,735
23%
22%
Europe
4,299,673
3,408,865
26
18
Growth Markets
2,730,784
2,228,671
23
21
Total Revenues
$
13,419,284
$
10,835,271
24%
21%
INDUSTRY GROUPS (1)
Communications, Media & Technology
$
2,767,475
$
2,201,229
26%
23%
Financial Services
2,611,145
2,104,102
24
20
Health & Public Service
2,504,853
2,090,006
20
18
Products
3,733,355
2,899,288
29
25
Resources
1,802,456
1,540,646
17
13
Total Revenues
$
13,419,284
$
10,835,271
24%
21%
TYPE OF WORK
Consulting
$
7,305,307
$
5,680,576
29%
25%
Outsourcing
6,113,977
5,154,695
19
16
Total Revenues
$
13,419,284
$
10,835,271
24%
21%
Year Ended
Percent Increase U.S.
Dollars
Percent Increase Local
Currency
August 31, 2021
August 31, 2020
GEOGRAPHIC MARKETS
North America
$
23,701,341
$
20,982,253
13%
12%
Europe
16,749,484
14,402,142
16
8
Growth Markets
10,082,564
8,942,644
13
11
Total Revenues
$
50,533,389
$
44,327,039
14%
11%
INDUSTRY GROUPS (1)
Communications, Media & Technology
$
10,285,549
$
8,883,264
16%
14%
Financial Services
9,932,523
8,518,894
17
13
Health & Public Service
9,498,234
8,023,651
18
16
Products
13,954,337
12,287,050
14
10
Resources
6,862,746
6,614,180
4
1
Total Revenues
$
50,533,389
$
44,327,039
14%
11%
TYPE OF WORK
Consulting
$
27,337,699
$
24,227,024
13%
9%
Outsourcing
23,195,690
20,100,015
15
13
Total Revenues
$
50,533,389
$
44,327,039
14%
11%
(1) Effective September 1, 2020, we
revised the reporting of our industry groups to include amounts
previously reported in Other. Prior period amounts have been
reclassified to conform with the current period presentation.
Accenture plc
Operating Income by Geographic
Market
(In thousands of U.S.
dollars)
(Unaudited)
Three Months Ended
August 31, 2021
August 31, 2020
Operating Income
Operating Margin
Operating Income
Operating Margin
Increase
North America
$
1,118,578
18
%
$
888,000
17
%
$
230,578
Europe
496,241
12
322,093
9
174,148
Growth Markets
343,870
13
334,610
15
9,260
Total Operating Income
$
1,958,689
14.6
%
$
1,544,703
14.3
%
$
413,986
Year Ended
August 31, 2021
August 31, 2020
Operating Income
Operating Margin
Operating Income
Operating Margin
Increase (Decrease)
North America
$
3,907,883
16
%
$
3,169,648
15
%
$
738,235
Europe
2,236,462
13
1,799,431
12
437,031
Growth Markets
1,477,184
15
1,544,565
17
(67,381)
Total Operating Income
$
7,621,529
15.1
%
$
6,513,644
14.7
%
$
1,107,885
Accenture plc
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
August 31, 2021
August 31, 2020
As Reported (GAAP)
As Reported (GAAP)
Investment Gains (1)
Adjusted (Non-GAAP)
Income before income taxes
$
1,917,805
$
1,783,355
$
(218,882)
$
1,564,473
Income tax expense
480,382
477,931
(33,674)
444,257
Net income
$
1,437,423
$
1,305,424
$
(185,208)
$
1,120,216
Effective tax rate
25.0
%
26.8
%
28.4
%
Diluted earnings per share
$
2.20
$
1.99
$
(0.29)
$
1.70
Year Ended
August 31, 2021
August 31, 2020
As Reported (GAAP)
Investment Gains (1)
Adjusted (Non-GAAP)
As Reported (GAAP)
Investment Gains (1)
Adjusted (Non-GAAP)
Income before income taxes
$
7,761,116
$
(271,009)
$
7,490,107
$
6,774,331
$
(332,074)
$
6,442,257
Income tax expense
1,770,571
(41,440)
1,729,131
1,589,018
(52,407)
1,536,611
Net income
$
5,990,545
$
(229,569)
$
5,760,976
$
5,185,313
$
(279,667)
$
4,905,646
Effective tax rate
22.8
%
23.1
%
23.5
%
23.9
%
Diluted earnings per share
$
9.16
$
(0.36)
$
8.80
$
7.89
$
(0.43)
$
7.46
(1) Represents gains related to our
investment in Duck Creek Technologies.
Accenture plc
Consolidated Balance
Sheets
(In thousands of U.S.
dollars)
August 31, 2021
August 31, 2020
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
8,168,174
$
8,415,330
Short-term investments
4,294
94,309
Receivables and contract assets
9,728,212
7,846,892
Other current assets
1,765,831
1,393,225
Total current assets
19,666,511
17,749,756
NON-CURRENT ASSETS:
Contract assets
38,334
43,257
Investments
329,526
324,514
Property and equipment, net
1,639,105
1,545,568
Lease assets
3,182,519
3,183,346
Goodwill
11,125,861
7,709,820
Other non-current assets
7,193,987
6,522,332
Total non-current assets
23,509,332
19,328,837
TOTAL ASSETS
$
43,175,843
$
37,078,593
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and bank
borrowings
$
12,080
$
7,820
Accounts payable
2,274,057
1,349,874
Deferred revenues
4,229,177
3,636,741
Accrued payroll and related benefits
6,747,853
5,083,950
Lease liabilities
744,164
756,057
Other accrued liabilities
1,701,536
1,828,148
Total current liabilities
15,708,867
12,662,590
NON-CURRENT LIABILITIES:
Long-term debt
53,473
54,052
Lease liabilities
2,696,917
2,667,584
Other non-current liabilities
4,619,472
4,195,194
Total non-current liabilities
7,369,862
6,916,830
Total Accenture plc shareholders’
equity
19,528,272
17,000,536
Noncontrolling interest
568,842
498,637
Total Shareholders' Equity
20,097,114
17,499,173
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
43,175,843
$
37,078,593
Accenture plc
Consolidated Cash Flows
Statements
(In thousands of U.S.
dollars)
(Unaudited)
Three Months Ended
Year Ended
August 31, 2021
August 31, 2020
August 31, 2021
August 31, 2020
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income
$
1,437,423
$
1,305,424
$
5,990,545
$
5,185,313
Depreciation, amortization and other
486,281
486,890
1,891,242
1,773,124
Share-based compensation expense
275,700
259,706
1,342,951
1,197,806
Change in assets and liabilities/other,
net
237,028
1,104,114
(249,590)
58,909
Net cash provided by (used in)
operating activities
2,436,432
3,156,134
8,975,148
8,215,152
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of property and equipment
(236,295)
(188,718)
(580,132)
(599,132)
Purchases of businesses and investments,
net of cash acquired
(2,626,711)
(205,233)
(4,171,123)
(1,531,599)
Proceeds from sale of businesses and
investments
3,725
145,507
413,553
230,393
Other investing, net
7,965
2,102
27,936
5,819
Net cash provided by (used in)
investing activities
(2,851,316)
(246,342)
(4,309,766)
(1,894,519)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of ordinary
shares
126,211
105,743
1,065,775
955,308
Purchases of shares
(914,648)
(589,892)
(3,703,124)
(2,915,847)
Cash dividends paid
(557,930)
(509,201)
(2,236,094)
(2,037,733)
Other financing, net
(21,418)
(20,192)
(52,894)
(50,820)
Net cash provided by (used in)
financing activities
(1,367,785)
(1,013,542)
(4,926,337)
(4,049,092)
Effect of exchange rate changes on cash
and cash equivalents
(58,537)
76,819
13,799
16,936
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
(1,841,206)
1,973,069
(247,156)
2,288,477
CASH AND CASH EQUIVALENTS, beginning of
period
10,009,380
6,442,261
8,415,330
6,126,853
CASH AND CASH EQUIVALENTS, end of
period
$
8,168,174
$
8,415,330
$
8,168,174
$
8,415,330
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210923005360/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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