EX-99.1 2 d408364dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

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Amdocs Limited Reports Fourth Quarter & Full Year Fiscal 2022 Results

Record Fiscal 2022 Revenue of $4.58 Billion, up 6.7% YoY as Reported and up 10.3% YoY in Pro Forma(2) Constant Currency(3)

Continued Sales Momentum & Record 12-Month Backlog of $3.97 Billion, up 7.6% YoY

Expects Fiscal 2023 Revenue Growth of 4.0%-8.0% YoY as Reported and 6.0%-10.0% YoY in Constant Currency(3)

Full Year Fiscal 2022 Highlights

(All comparisons are against the prior year)

 

  •  

Record revenue of $4,577 million, up 6.7% as reported and up 10.3% on a pro forma(2) basis in constant currency(3), including record revenue of $3,100 million in North America

 

  •  

GAAP diluted EPS of $4.44, down 16.5% as reported, and up 13.3% after adjusting(4) for a gain from previously announced divestiture of OpenMarket in the prior fiscal year

 

  •  

Non-GAAP diluted EPS of $5.30, up 12.1% on a pro forma(2) basis and 10.2% as reported

 

  •  

Free cash flow of $530 million, reflecting healthy annual cash collections, and comprised of cash flow from operations of $757 million, less $227 million in net capital expenditures and other(1)

 

  •  

Normalized free cash flow of $665 million(1), equating to a conversion rate of roughly 102% compared to non-GAAP net income

 

  •  

Record twelve-month backlog of $3.97 billion, up approximately $20 million sequentially and up 7.6% as compared to last year’s fourth fiscal quarter

 

(1)

Please refer to the Selected Financial Metrics tables (figures may not sum because of rounding).

 

(2)

Pro forma growth rate excludes the financial impact of OpenMarket (which was divested on December 31, 2020) from fiscal year 2021

 

(3)

Revenue on a constant currency basis assumes exchange rates in the current period were unchanged from the prior period

 

(4)

Adjusted GAAP excludes the gain from the sale of OpenMarket, which was divested on December 31, 2020, from the current and comparable fiscal years

Fourth Quarter Fiscal 2022 Highlights

(All comparisons are against the prior year’s fourth quarter)

 

  •  

Record revenue of $1,167 million, up 7.3% as reported and up 9.5% in constant currency(3); revenue was slightly above the midpoint of $1,145-$1,185 million guidance range, despite unfavorable foreign currency movements of roughly $9 million compared to our guidance assumptions

 

  •  

Record revenue of $794 million in North America, up 9.9%

 

  •  

Managed services revenue of $715 million, equivalent to approximately 61% of total revenue

 

  •  

GAAP diluted EPS of $1.05, toward the high end of $0.98-$1.06 guidance range

 

  •  

Non-GAAP diluted EPS of $1.29, at the midpoint of $1.26-$1.32 guidance range

 

  •  

GAAP operating income of $172 million; GAAP operating margin of 14.7%

 

  •  

Non-GAAP operating income of $205 million; non-GAAP operating margin of 17.6%, unchanged sequentially and up 10 basis points as compared to last year’s fourth fiscal quarter while accelerating R&D investments

 

  •  

The board of directors approved a 10% increase in the Company’s quarterly cash dividend payment from $0.395 per share to $0.435 per share, anticipated to be first paid in April 2023, subject to shareholder approval at the January 2023 annual meeting

JERSEY CITY, NJ – November 8, 2022 – Amdocs Limited (NASDAQ: DOX), a leading provider of software and services to communications and media companies, today reported operating results for the fourth fiscal quarter and full fiscal year ended September 30, 2022.

“Fiscal 2022 was a landmark year for Amdocs, and I could not be prouder of our talented employees and our many amazing achievements. We delivered accelerated full year revenue growth of 10.3% on a pro forma(2) constant currency (3) basis as we executed our strategy to support the industry’s need for digital modernization, 5G monetization, cloud, and network automation with market-leading innovation. Strong sales momentum throughout fiscal 2022 continued in Q4 and included a five-year agreement to migrate Amdocs systems to the cloud for AT&T Mexico. Additionally, we are working with Rogers to move existing Amdocs services and applications to Rogers’ private cloud. Overall, we ended fiscal 2022 with record-high 12-month backlog of $3.97 billion, up approximately 8% from a year ago”, said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

“Amdocs’ reputation for project execution is unrivalled in our industry, as demonstrated by a record number of production milestones achieved for our customers in Q4 and the full 2022 fiscal year. At the same time, we maintained consistent profitability and generated robust free cash flow, primarily driven by strong levels of customer cash collections throughout the fiscal year. Fiscal year 2022 was also a record year in managed services where recent customer activity included new long-term strategic agreements that strengthen and broaden our relationships with Charter in North America, Telefonica Hispanoamerica in Argentina, Chile and Peru, and SES in Europe,” said Tamar Rapaport-Dagim, chief financial officer & chief operating officer of Amdocs Management Limited.

Sheffer concluded, “We are confident in our unique and resilient business model given the strategic and mission critical nature of our products and services that we provide under multi-year customer engagements. While we are not immune to the current macro uncertainty, our role as a trusted partner is especially valuable during such times as we work to help service providers improve customer experience, accelerate cost reduction, and increase efficiency with our digital, cloud, automation and 5G monetization capabilities. Taking everything into consideration, we are positioned to deliver fiscal year 2023 revenue growth in line with the midpoint of our long-term target range of 6% to 10% on a constant currency(3) basis while delivering strong earnings to cash conversion.”

Revenue

(All comparisons are against the prior year period)

 

     In millions  
     Three months ended      Twelve months ended  
     September 30, 2022      September 30, 2022  
     Actual      Previous
Guidance		      Actual      Previous
Guidance		  

Revenue

    $ 1,167      $ 1,145 - $1,185        $ 4,577        —    

Revenue growth, as reported

      7.3%        —          6.7%        6.2% - 7.2%  

Revenue growth, constant currency(3)

     9.5%        —          —          —    

Pro forma(2) revenue growth, constant currency(3)

     —          —          10.3%        9.6% - 10.6%  

  •  

Revenue for the fourth fiscal quarter of 2022 was slightly above the midpoint of Amdocs’ guidance, despite unfavorable foreign currency movements of roughly $9 million compared to our guidance assumptions

 

  •  

Revenue for the fourth fiscal quarter includes an unfavorable impact from foreign currency movements of approximately $12 million relative to the third quarter of fiscal 2022

 

  •  

Revenue for the full year fiscal 2022 includes an unfavorable impact from foreign currency movements of approximately 1.4% year-over-year

Net Income and Earnings Per Share

 

     In thousands, except per share data  
     Three months ended
September 30,		      Twelve months ended
September 30,		  
     2022      2021      2022      2021(a)  

GAAP Measures

            

Net income

    $ 128,936      $ 123,525      $ 549,501      $ 688,374  

Diluted earnings per share

    $ 1.05      $ 0.97      $ 4.44      $ 5.32  

Non-GAAP Measures

            

Net income

    $ 157,548      $ 147,470      $ 655,147      $ 621,820  

Diluted earnings per share

    $ 1.29      $ 1.16      $ 5.30      $ 4.81  

 

  •  

Non-GAAP net income excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisition related liabilities measured at fair value, equity-based compensation expenses, gain from divestiture of OpenMarket and other, net of related tax effects, in all the periods presented

 

  •  

In fiscal year 2021, the GAAP net income includes a gain from divestiture of OpenMarket, net of related tax effects, at the amount of $1.44 per share, which is excluded from the Non-GAAP net income

For further details of the reconciliation of selected financial metrics from GAAP to Non-GAAP, please refer to the tables below.

Capital Allocation: Returning Cash to Shareholders

 

  •  

Quarterly Cash Dividend Program: On November 8, 2022, the Board approved the Company’s next quarterly cash dividend payment of $0.395 per share and set December 30, 2022 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on January 27, 2023

 

  •  

The Board also approved a 10% increase in the Company’s quarterly cash dividend payment to $0.435 per share, which is anticipated to be first paid in April 2023, provided that the increase is approved by shareholders at the January 2023 annual general meeting of shareholders

 

  •  

Share Repurchase Activity: Repurchased $108 million of ordinary shares during the fourth quarter of fiscal 2022

Twelve-month Backlog

Twelve-month backlog was a record $3.97 billion at the end of the fourth quarter of fiscal 2022, up approximately 7.6% as compared to last year’s fourth fiscal quarter. Twelve-month backlog includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities.

First Quarter Fiscal 2023 Outlook

 

     In millions, except per share data  
     Q1 2023  

Revenue

    $ 1,155-$1,195  

GAAP diluted EPS

    $ 1.00-$1.08  

Non-GAAP diluted EPS

    $ 1.29-$1.35  

 

  •  

First quarter revenue guidance assumes approximately $7 million sequential unfavorable impact from foreign currency fluctuations as compared to the fourth quarter of fiscal 2022

 

  •  

First quarter non-GAAP diluted EPS guidance excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, and approximately $0.13-$0.15 per share of equity-based compensation expense and other, net of related tax effects

Full Year Fiscal 2023 Outlook

 

     FY 2023, year-over-year growth

Revenue growth, as reported

    4.0%-8.0%

Revenue growth, constant currency(3)

   6.0%-10.0%

GAAP diluted EPS growth

    3.0% - 10.0%

Non-GAAP diluted EPS growth

    8.0%-12.0%
     In millions
     FY 2023,

Free cash flow(1)

   ~$700

 

  •  

Full year fiscal 2023 revenue guidance incorporates an expected unfavorable impact from foreign currency fluctuations of approximately 2% year-over-year

 

  •  

Non-GAAP diluted earnings per share growth excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, approximately $0.61-$0.69 per share of equity-based compensation expense, and other, net of related tax effects.

 

  •  

Non-GAAP effective tax rate is anticipated to be within a range of 13.0% to 17.0% for the full year fiscal 2023

 

  •  

Free cash flow(1) is comprised of cash flow from operations, less net capital expenditures and other

The forward looking statements regarding our first fiscal quarter 2023 and full year fiscal 2023 guidance take into consideration the Company’s current expectations regarding macro and industry specific risks and various uncertainties and certain assumptions that we will discuss on our earnings conference call. However, we note that market dynamics continue to shift rapidly and we cannot predict all possible outcomes, including those resulting from certain geopolitical events, the current inflationary environment, the COVID-19 pandemic and the prevailing level of macro-economic, business and operational uncertainty, which have created, and continues to create, a significant amount of uncertainty, or from current and potential customer consolidation or their other strategic corporate activities.

Conference Call and Earnings Webcast Presentation Details

Amdocs will host a conference call and earnings webcast presentation on November 8, 2022 at 5:00 p.m. Eastern Time to discuss the Company’s fourth quarter of fiscal 2022 results.

To participate in the call, please register here to receive the dial-in numbers and unique access PIN. The conference call and webcast will also be carried live on the Internet and may be accessed via the Amdocs website at https://investors.amdocs.com. Presentation slides will be available shortly before the webcast.

Non-GAAP Financial Measures

This release includes non-GAAP diluted earnings per share and other non-GAAP financial measures, including free cash flow and normalized free cash flow, revenue on a constant currency(3) basis, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expenses, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income and non-GAAP diluted earnings per share growth. These other non-GAAP measures exclude the following items:

 

  •  

amortization of purchased intangible assets and other acquisition-related costs;

 

  •  

changes in certain acquisition-related liabilities measured at fair value;

 

  •  

non-recurring and unusual charges or benefits (such as a gain from divestiture of OpenMarket);

 

  •  

equity-based compensation expense;

 

  •  

other; and

 

  •  

tax effects related to the above.

Free cash flow equals cash generated by operating activities less net capital expenditures and other. Normalized free cash flow, a measure of our operating performance, is further adjusted to exclude net capital expenditures related to the new campus development, payments for non-recurring and unusual charges (such as capital gains tax in relation to the divestiture of OpenMarket), and payments of acquisition related liabilities. These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Amdocs believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Amdocs’ results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Amdocs’ results of operations in conjunction with the corresponding GAAP measures.

Amdocs believes that the presentation of non-GAAP diluted earnings per share and other financial measures, including free cash flow and normalized free cash flow, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expenses, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income and non-GAAP diluted earnings per share growth when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations, as well as the net amount of cash generated by its business operations after taking into account capital spending required to maintain or expand the business.

For its internal budgeting process and in monitoring the results of the business, Amdocs’ management uses financial statements that do not include amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisition-related liabilities measured at fair value, non-recurring and unusual charges or benefits, equity-based compensation expense, other and related tax effects. Amdocs’ management also

uses the foregoing non-GAAP financial measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Amdocs. In addition, Amdocs believes that significant groups of investors exclude these items in reviewing its results and those of its competitors, because the amounts of the items between companies can vary greatly depending on the assumptions used by an individual company in determining the amounts of the items.

Amdocs further believes that, where the adjustments used in calculating non-GAAP diluted earnings per share are based on specific, identified amounts that impact different line items in the Consolidated Statements of Income (including cost of revenue, research and development, selling, general and administrative, operating income, interest and other expenses, net, income taxes and net income), it is useful to investors to understand how these specific line items in the Consolidated Statements of Income are affected by these adjustments. Please refer to the Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP tables below.

Supporting Resources

 

  •  

Keep up with Amdocs news by visiting the Company’s website

 

  •  

Subscribe to Amdocs’ RSS Feed and follow us on Twitter, Facebook, LinkedIn and YouTube

About Amdocs

Amdocs helps those who build the future to make it amazing. With our market-leading portfolio of software products and services, we unlock our customers’ innovative potential, empowering them to provide next-generation communication and media experiences for both the individual end user and large enterprise customers. Our 31,000 employees around the globe are here to accelerate service providers’ migration to the cloud, enable them to differentiate in the 5G era, and digitalize and automate their operations. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.58 billion in fiscal 2022.

For more information, visit Amdocs at www.amdocs.com.

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs’ growth and business results in future quarters and years. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of macro-economic conditions, including as a result of geopolitical events or other global or regional events such as the COVID-19 pandemic, as well as the current inflationary environment, and the effects of these conditions on the company’s clients’ businesses and levels of business activity, Amdocs’ ability to grow in the business markets that it serves, Amdocs’ ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company’s products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, Amdocs specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs’ filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2021 filed on December 9, 2021 and our Form 6-K furnished for the first quarter of fiscal 2022 on February 14, 2022, the second quarter of fiscal 2022 on May 24, 2022 and for the third quarter of fiscal 2022 on August 15, 2022.

Contact:

Matthew Smith

Head of Investor Relations

Amdocs

314-212-8328

E-mail: dox_info@amdocs.com

AMDOCS LIMITED

Consolidated Statements of Income

(In thousands, except per share data)

 

     Three months ended
September 30,		     Fiscal year ended
September 30,		  
     2022     2021     2022     2021(a)  

Revenue

    $ 1,166,504     $ 1,087,309     $ 4,576,697     $ 4,288,640  

Operating expenses:

         

Cost of revenue

      751,358       707,366       2,957,547       2,810,967  

Research and development

      96,218       81,324       354,706       312,941  

Selling, general and administrative

      129,404       126,015       528,572       487,255  

Amortization of purchased intangible assets and other

      17,838       18,274       71,075       78,784  
  

 

 

    

 

 

    

 

 

    

 

 

  
     994,818       932,979       3,911,900       3,689,947  
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      171,686       154,330       664,797       598,693  

Interest and other expense, net

      (7,399 )      (1,099 )      (26,391 )      (10,797 ) 

Gain from sale of a business

      —         —         10,000       226,410  
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

      164,287       153,231       648,406       814,306  

Income taxes

      35,351       29,706       98,905       125,932  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 128,936     $ 123,525     $ 549,501     $ 688,374  
  

 

 

    

 

 

    

 

 

    

 

 

  

Basic earnings per share

    $ 1.06     $ 0.98     $ 4.47     $ 5.36  
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted earnings per share

    $ 1.05     $ 0.97     $ 4.44     $ 5.32  
  

 

 

    

 

 

    

 

 

    

 

 

  

Basic weighted average number of shares outstanding

      121,449       125,923       122,812       128,495  
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted weighted average number of shares outstanding

      122,320       126,820       123,650       129,284  
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash dividends declared per share

    $ 0.395     $ 0.36     $ 1.545     $ 1.4075  
  

 

 

    

 

 

    

 

 

    

 

 

  

AMDOCS LIMITED

Selected Financial Metrics

(In thousands, except per share data)

 

     Three months ended      Fiscal year ended  
     September 30,      September 30,  
     2022      2021      2022      2021(a)  

Revenue

    $ 1,166,504      $ 1,087,309      $ 4,576,697      $ 4,288,640  

Non-GAAP operating income

      205,337        190,195        804,894        750,665  

Non-GAAP net income

      157,548        147,470        655,147        621,820  

Non-GAAP diluted earnings per share

    $ 1.29      $ 1.16      $ 5.30      $ 4.81  

Diluted weighted average number of shares outstanding

      122,320        126,820        123,650        129,284  

Free Cash Flows and Normalized Free Cash Flow

(In thousands)

 

     Three months ended     Fiscal year ended  
     September 30,     September 30,  
     2022     2021     2022     2021(a)  

Net Cash Provided by Operating Activities

    $ 216,919     $ 199,713     $ 756,719     $ 925,807  

Purchases of property and equipment, net (c)

      (81,819 )      (60,873 )      (227,219 )      (210,438 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Free Cash Flow

      135,100       138,840       529,500       715,369  

Tax payment on sale of business(b)

      —         809       3,193       39,596  

Payments of acquisition related liabilities

      1,925       —         16,275       13,234  

Net capital expenditures related to the new campus development

      38,683       32,801       116,359       100,680  
  

 

 

    

 

 

    

 

 

    

 

 

  

Normalized Free Cash Flow

    $ 175,708     $ 172,450     $ 665,327     $ 868,879  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(a)

Since January 1, 2021, OpenMarket results are not included in the Consolidated Statements of Income given its divestiture.

(b)

Tax payment related to capital gain from divesture of OpenMarket, which was completed on December 31, 2020.

(c)

The amounts under “Purchase of property and equipment, net” include proceeds from sale of property and equipment of $521 and $328 for the Fiscal years ended September 30, 2022 and 2021, respectively.

AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(In thousands)

 

     Three months ended
September 30, 2022		  
           Reconciliation items        
     GAAP     Amortization
of purchased
intangible
assets and
other		     Equity based
compensation
expense		     Changes in
certain
acquisitions
related liabilities
measured at fair
value		     Other      Tax
effect		     Non-GAAP  

Operating expenses:

                

Cost of revenue

    $ 751,358     $ —       $ (8,356 )    $ 3,294     $ —        $ —       $ 746,296  

Research and development

      96,218         (1,538 )             94,680  

Selling, general and administrative

      129,404         (9,213 )             120,191  

Amortization of purchased intangible assets and other

      17,838       (17,838 )               —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total operating expenses

      994,818       (17,838 )      (19,107 )      3,294       —          —         961,167  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Operating income

      171,686       17,838       19,107       (3,294 )           205,337  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Interest and other expense, net

      (7,399 )            400          (6,999 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Income taxes

      35,351                5,439       40,790  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income

    $ 128,936     $ 17,838     $ 19,107     $ (3,294 )    $ 400      $ (5,439 )    $ 157,548  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

     Three months ended
September 30, 2021		  
           Reconciliation items        
     GAAP     Amortization
of purchased
intangible
assets and
other		     Equity based
compensation
expense		     Changes in
certain
acquisitions
related
liabilities
measured
at fair
value		     Other     Tax
effect		     Non-GAAP  

Operating expenses:

               

Cost of revenue

    $ 707,366     $ —       $ (6,148 )    $ (3,285 )    $ —       $ —       $ 697,933  

Research and development

      81,324       —         (1,145 )      —         —         —         80,179  

Selling, general and administrative

      126,015       —         (7,013 )      —         —         —         119,002  

Amortization of purchased intangible assets and other

      18,274       (18,274 )      —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      932,979       (18,274 )      (14,306 )      (3,285 )      —         —         897,114  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      154,330       18,274       14,306       3,285       —         —         190,195  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Interest and other expense, net

      (1,099 )      —         —         —         (4,360 )      —         (5,459 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income taxes

      29,706       —         —         —         —         7,560       37,266  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 123,525     $ 18,274     $ 14,306     $ 3,285     $ (4,360 )    $ (7,560 )    $ 147,470  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(In thousands)

 

     Fiscal year ended
September 30, 2022		  
           Reconciliation items        
     GAAP     Amortization
of purchased
intangible
assets and
other		     Equity based
compensation
expense		     Changes in
certain
acquisitions
related
liabilities
measured
at fair
value		     Gain from
sale of a
business		     Other     Tax
effect		     Non-GAAP  

Operating expenses:

                 

Cost of revenue

    $ 2,957,547     $ —       $ (32,096 )    $ 2,785     $ —       $ —       $ —       $ 2,928,236  

Research and development

      354,706         (5,631 )              349,075  

Selling, general and administrative

      528,572         (34,080 )              494,492  

Amortization of purchased intangible assets and other

      71,075       (71,075 )                —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      3,911,900       (71,075 )      (71,807 )      2,785       —           —         3,771,803  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      664,797       71,075       71,807       (2,785 )      —             804,894  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Interest and other expense, net

      (26,391 )              (1,605 )        (27,996 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gain from sale of a business

      10,000             (10,000 )          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income taxes

      98,905                 22,846       121,751  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 549,501     $ 71,075     $ 71,807     $ (2,785 )    $ (10,000 )    $ (1,605 )    $ (22,846 )    $ 655,147  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

     Fiscal year ended
September 30, 2021(a)		  
           Reconciliation items        
     GAAP     Amortization
of purchased
intangible
assets and
other		     Equity based
compensation
expense		     Changes in
certain
acquisitions
related
liabilities
measured
at fair
value		     Gain from
sale of a
business		     Other     Tax
effect		     Non-GAAP  

Operating expenses:

                 

Cost of revenue

    $ 2,810,967     $ —       $ (22,691 )    $ (18,939 )    $ —       $ —       $ —       $ 2,769,337  

Research and development

      312,941       —         (4,021 )      —         —         —         —         308,920  

Selling, general and administrative

      487,255       —         (27,537 )      —         —         —         —         459,718  

Amortization of purchased intangible assets and other

      78,784       (78,784 )      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      3,689,947       (78,784 )      (54,249 )      (18,939 )      —         —         —         3,537,975  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      598,693       78,784       54,249       18,939       —         —         —         750,665  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Interest and other expense, net

      (10,797 )      —         —         —         —         (5,046 )      —         (15,843 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gain from sale of a business

      226,410       —         —         —         (226,410 )      —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income taxes

      125,932       —         —         —         —         —         (12,930 )      113,002  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 688,374     $ 78,784     $ 54,249     $ 18,939     $ (226,410 )    $ (5,046 )    $ 12,930     $ 621,820  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

AMDOCS LIMITED

Condensed Consolidated Balance Sheets

(In thousands)

 

     As of  
     September 30,
2022		      September 30,
2021		  

ASSETS

      

Current assets

      

Cash and cash equivalents

    $ 573,377      $ 709,064  

Short-term interest-bearing investments

      244,603        256,527  

Accounts receivable, net, including unbilled of $157,165 and $162,278, respectively

      946,777        866,819  

Prepaid expenses and other current assets

      238,390        235,089  
  

 

 

     

 

 

  

Total current assets

      2,003,147        2,067,499  

Property and equipment, net

      794,287        698,768  

Lease assets

      176,884        233,162  

Goodwill and other intangible assets, net

      2,841,137        2,881,676  

Other noncurrent assets

      574,938        630,669  
  

 

 

     

 

 

  

Total assets

    $ 6,390,393      $ 6,511,774  
  

 

 

     

 

 

  

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current liabilities

      

Accounts payable, accruals and other

    $ 955,658      $ 1,007,777  

Lease liabilities

      43,336        58,714  

Deferred revenue

      253,686        237,374  
  

 

 

     

 

 

  

Total current liabilities

      1,252,680        1,303,865  

Lease liabilities

      138,378        177,906  

Long-term debt, net of unamortized debt issuance costs

      645,117        644,553  

Other noncurrent liabilities

      793,940        750,266  

Total Amdocs Limited Shareholders’ equity

      3,517,769        3,592,675  

Noncontrolling interests

      42,509        42,509  
  

 

 

     

 

 

  

Total equity

      3,560,278        3,635,184  
  

 

 

     

 

 

  

Total liabilities and equity

    $ 6,390,393      $ 6,511,774  
  

 

 

     

 

 

  

AMDOCS LIMITED

Consolidated Statements of Cash Flows

(In thousands)

 

     Fiscal year ended
September 30,		  
     2022     2021(a)  

Cash Flow from Operating Activities:

     

Net income

    $ 549,501     $ 688,374  

Reconciliation of net income to net cash provided by operating activities:

     

Depreciation, amortization and impairment

      224,535       208,830  

Amortization of debt issuance costs

      564       548  

Equity-based compensation expense

      71,807       54,249  

Gain from sale of a business

      (10,000 )      (226,410 ) 

Deferred income taxes

      (3,292 )      (50,605 ) 

Loss from short-term interest-bearing investments

      2,728       1,726  

Net changes in operating assets and liabilities, net of amounts acquired:

     

Accounts receivable, net

      (64,978 )      (69,051 ) 

Prepaid expenses and other current assets

      (3,527 )      (17,041 ) 

Other noncurrent assets

      19,760       (50,038 ) 

Lease assets and liabilities, net

      1,394       9,630  

Accounts payable, accrued expenses and accrued personnel

      (83,932 )      122,224  

Deferred revenue

      (22,456 )      193,655  

Income taxes payable, net

      15,648       26,814  

Other noncurrent liabilities

      58,967       32,902  
  

 

 

    

 

 

  

Net cash provided by operating activities

      756,719       925,807  
  

 

 

    

 

 

  

Cash Flow from Investing Activities:

     

Purchase of property and equipment, net (c)

      (227,219 )      (210,438 ) 

Proceeds from sale of short-term interest-bearing investments

      21,948       18,205  

Purchase of short-term interest-bearing investments

      (34,275 )      (276,978 ) 

Net cash paid for business and intangible assets acquisitions

      (24,430 )      (142,697 ) 

Net cash received from sale of a business

      10,000       288,990  

Other

      (8,525 )      (6,082 ) 
  

 

 

    

 

 

  

Net cash used in investing activities

      (262,501 )      (329,000 ) 
  

 

 

    

 

 

  

Cash Flow from Financing Activities:

     

Payments under financing arrangements

      —         (100,000 ) 

Repurchase of shares

      (508,472 )      (679,996 ) 

Proceeds from employee stock options exercises

      82,924       89,056  

Payments of dividends

      (186,073 )      (177,472 ) 

Payment of contingent consideration from a business acquisition

      (18,284 )      (2,519 ) 
  

 

 

    

 

 

  

Net cash used in financing activities

      (629,905 )      (870,931 ) 
  

 

 

    

 

 

  

Net decrease in cash and cash equivalents

      (135,687 )      (274,124 ) 

Cash and cash equivalents at beginning of period

      709,064       983,188  
  

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 573,377     $ 709,064  
  

 

 

    

 

 

  

AMDOCS LIMITED

Supplementary Information

(In millions)

 

     Three months ended  
     September 30,
2022		      June 30,
2022		      March 31,
2022		      December 31,
2021		      September 30,
2021		  

North America

    $ 794.4      $ 788.0      $ 772.2      $ 745.5      $ 722.8  

Europe

      146.4        146.1        147.2        142.5        146.8  

Rest of the World

      225.7        226.2        225.9        216.6        217.7  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Revenue

    $ 1,166.5      $ 1,160.3      $ 1,145.3      $ 1,104.6      $ 1,087.3  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     Three months ended  
     September 30,
2022		      June 30,
2022		      March 31,
2022		      December 31,
2021		      September 30,
2021		  

Managed Services Revenue

    $ 714.6      $ 717.9      $ 663.4      $ 659.7      $ 637.5  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     As of  
     September 30,
2022		      June 30,
2022		      March 31,
2022		      December 31,
2021		      September 30,
2021		  

12-Month Backlog

    $ 3,970      $ 3,950      $ 3,890      $ 3,830      $ 3,690  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

# # #