UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 27, 2011
Accenture plc
(Exact name of Registrant as specified in its charter)
| Ireland | 001-34448 | 98-0627530 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
1 Grand Canal Square,
Grand Canal Harbour,
Dublin 2, Ireland
(Address of principal executive offices)
Registrant’s telephone number, including area code: (353) (1) 646-2000
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition
On September 27, 2011, Accenture issued a press release announcing financial results for its fourth quarter and full fiscal year ended August 31, 2011.
A copy of the press release is attached hereto as Exhibit 99.1. All information in the press release is furnished but not filed.
Non-GAAP Financial Information
In the attached press release Accenture discloses the following non-GAAP financial measures:
| • | Free cash flow (defined as operating cash flow net of property and equipment additions). Accenture’s management believes that this information provides meaningful additional information regarding the company’s liquidity. |
| • | Percentage changes in revenues before reimbursements (“net revenues”) on a local currency basis. 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. This approach is used for all results where the functional currency is not the U.S. dollar. Accenture’s management believes that information regarding changes in its net revenues that excludes the effect of fluctuations in foreign currency exchange rates facilitates meaningful comparison of its net revenues before reimbursements. |
Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are included in the press release. While Accenture’s management believes that this non-GAAP financial information is 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.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| 99.1 | Press Release of Accenture, dated September 27, 2011 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Date: September 27, 2011 | ACCENTURE PLC | |||||
| By: | /s/ Julie Spellman Sweet | |||||
| Name: | Julie Spellman Sweet | |||||
| Title: | General Counsel, Secretary & Chief Compliance Officer | |||||
Exhibit 99.1
Accenture Reports Strong Fourth-Quarter and Full-Year Fiscal 2011 Results,
With Record Annual Revenues, EPS, Operating Margin,
Free Cash Flow and New Bookings
— Fourth-quarter revenues increase 23% in U.S. dollars and 14% in local currency, to
$6.7 billion; quarterly EPS increase 38%, to $0.91; free cash flow is $1.2 billion —
— For full year, revenues increase 18% in U.S. dollars and 15% in local currency, to
$25.5 billion; EPS increase 28%, to $3.40; and free cash flow is $3.0 billion —
— New bookings are $8.4 billion for fourth quarter and $28.8 billion for full year —
— Company increases semi-annual cash dividend 50%, to 67.5 cents per share;
Board of Directors approves $5 billion of additional share repurchase authority —
— For fiscal year 2012, Accenture expects net revenue growth of 7% to 10% in local currency
and EPS of $3.80 to $3.88, an increase of 12% to 14% —
NEW YORK; Sept. 27, 2011 — Accenture (NYSE: ACN) reported strong financial results for the fourth quarter and full 2011 fiscal year, ended Aug. 31, 2011, with record annual revenues, earnings per share, operating margin, free cash flow and new bookings.
For the fourth quarter, revenues before reimbursements (“net revenues”) were $6.7 billion, an increase of 23 percent in U.S. dollars and 14 percent in local currency compared with the fourth quarter of fiscal 2010. Diluted earnings per share were $0.91, an increase of 38 percent. Operating margin was 13.8 percent. Operating cash flow was $1.4 billion and free cash flow was $1.2 billion, both quarterly records. New bookings were $8.4 billion, the company’s highest quarterly bookings ever.
For the full fiscal year, net revenues were $25.5 billion, an increase of 18 percent in U.S. dollars and 15 percent in local currency compared with fiscal 2010. Diluted earnings per share were $3.40, an increase of 28 percent. Operating margin was 13.6 percent. Operating cash flow was $3.4 billion and free cash flow was $3.0 billion, which exceeded the top end of the company’s expectations by more than $300 million. New bookings were $28.8 billion.
In addition, Accenture’s Board of Directors has declared a semi-annual cash dividend of 67.5 cents per share, an increase of 22.5 cents per share, or 50 percent, over its previous semi-annual dividend, declared in March. The Board also approved $5 billion in additional share repurchase authority.
Pierre Nanterme, Accenture’s chief executive officer, said, “Our excellent results for the fourth quarter and full fiscal 2011 reflect the continued momentum in our business as we execute our growth strategy. We hit the top end of our range for both revenues and EPS and are particularly pleased with the growth across all dimensions of our business. In addition, we generated free cash flow of $3 billion for the year, which enabled us to return more than $2.8 billion to our shareholders through dividends and share repurchases and still close the year with an exceptionally strong balance sheet.
“While we are closely monitoring the economic environment, we continue to see strong demand for our services — demonstrated by record bookings of $8 billion in the fourth quarter and $29 billion in the full year. We are investing in our core business, in strategic initiatives and in our key geographic growth markets. Our industry expertise and technology leadership remain key differentiators for us, and we continue to run our business with rigor and discipline — with a focus on driving profitable growth, increasing market share and delivering significant value to clients and shareholders.”
Financial Review
Fourth Quarter Fiscal 2011
Net revenues for the fourth quarter of fiscal 2011 were $6.7 billion, compared with $5.4 billion for the fourth quarter of fiscal 2010, an increase of 23 percent in U.S. dollars and 14 percent in local currency. Net revenues for the fourth quarter of fiscal 2011 exceeded the company’s guided range of $6.4 billion to $6.6 billion, which assumed a foreign-exchange impact of positive 8 percent. Adjusting for the actual foreign-exchange impact of positive 9 percent in the fourth quarter, the company’s guided range for quarterly net revenues would have been $6.45 billion to $6.65 billion. Net revenues of $6.7 billion for the quarter were just above this adjusted range.
| • | Consulting net revenues were $3.9 billion, an increase of 25 percent in U.S. dollars and 16 percent in local currency compared with the fourth quarter of fiscal 2010. |
| • | Outsourcing net revenues were $2.8 billion, an increase of 21 percent in U.S. dollars and 13 percent in local currency compared with the fourth quarter of fiscal 2010. |
Diluted EPS for the fourth quarter were $0.91, compared with $0.66 for the fourth quarter last year. The $0.25 increase in EPS reflects:
| • | $0.14 from higher revenue and operating results in local currency; |
| • | $0.06 from favorable foreign-exchange rates compared with the fourth quarter of fiscal 2010; |
| • | $0.02 from a lower effective tax rate; |
| • | $0.02 from a lower share count; and |
| • | $0.01 from higher non-operating income. |
Operating income for the fourth quarter of fiscal 2011 was $923 million, or 13.8 percent of net revenues, compared with $714 million, or 13.2 percent of net revenues, for the fourth quarter of fiscal 2010, an expansion of 60 basis points.
Gross margin (gross profit as a percentage of net revenues) for the fourth quarter was 33.1 percent, compared with 34.0 percent for the fourth quarter of fiscal 2010. Selling, general and administrative (SG&A) expenses for the fourth quarter were $1.29 billion, or approximately 19.4 percent of net revenues, compared with $1.13 billion, or 20.9 percent of net revenues, for the fourth quarter of fiscal 2010.
The company’s effective tax rate for the fourth quarter was 27.0 percent, compared with 28.8 percent for the fourth quarter of fiscal 2010. The lower rate in the fourth quarter of fiscal 2011 was primarily due to a number of factors that affect the geographic mix of income.
Net income for the fourth quarter was $683 million, compared with $510 million for the same period of fiscal 2010.
Operating cash flow for the fourth quarter was $1.38 billion, and property and equipment additions were $137 million. Free cash flow, defined as operating cash flow net of property and equipment additions, was $1.24 billion. For the same period of fiscal 2010, operating cash flow was $1.25 billion, property and equipment additions were $102 million, and free cash flow was $1.15 billion.
Days services outstanding, or DSOs, were 30 days at Aug. 31, 2011, compared with 30 days at Aug. 31, 2010.
Accenture’s total cash balance at Aug. 31, 2011 was $5.7 billion, compared with $4.8 billion at Aug. 31, 2010.
Utilization for the fourth quarter of fiscal 2011 was 85 percent. Attrition for the fourth quarter was 14 percent, compared with 17 percent for the fourth quarter of fiscal 2010.
New Bookings
New bookings for the fourth quarter were approximately $8.4 billion. This reflects a positive 9 percent foreign-currency impact compared with the fourth quarter of fiscal 2010.
| • | Consulting new bookings were $4.16 billion, or 49 percent of fourth-quarter bookings. |
| • | Outsourcing new bookings were $4.28 billion, or 51 percent of fourth-quarter bookings. |
Net Revenues by Operating Group
All of the company’s operating groups achieved positive revenue growth in both local currency and U.S. dollars compared with the fourth quarter last year. Net revenues by operating group for the fourth quarter were as follows:
| • | Communications & High Tech*: $1.4 billion, compared with $1.2 billion for the fourth quarter of fiscal 2010, an increase of 23 percent in U.S. dollars and 13 percent in local currency. |
| • | Financial Services: $1.4 billion, compared with $1.1 billion for the fourth quarter of fiscal 2010, an increase of 23 percent in U.S. dollars and 13 percent in local currency. |
| • | Health & Public Service: $994 million, compared with $856 million for the fourth quarter of fiscal 2010, an increase of 16 percent in U.S. dollars and 12 percent in local currency. |
| • | Products: $1.6 billion, compared with $1.3 billion for the fourth quarter of fiscal 2010, an increase of 25 percent in U.S. dollars and 16 percent in local currency. |
| • | Resources: $1.3 billion, compared with $1.0 billion for the fourth quarter of fiscal 2010, an increase of 28 percent in U.S. dollars and 18 percent in local currency. |
| * | On Sept. 1, 2011, Accenture changed the name of its Communications & High Tech operating group to Communications, Media & Technology. The three industries that make up the operating group — Communications, Electronics & High Tech, and Media & Entertainment — remain the same. |
Net Revenues by Geographic Region
Net revenues by geographic region for the fourth quarter were as follows:
| • | Americas: $3.0 billion, compared with $2.5 billion for the fourth quarter of fiscal 2010, an increase of 21 percent in U.S. dollars and 18 percent in local currency. |
| • | Europe, Middle East and Africa (EMEA): $2.7 billion, compared with $2.2 billion for the fourth quarter of fiscal 2010, an increase of 22 percent in U.S. dollars and 8 percent in local currency. |
| • | Asia Pacific: $957 million, compared with $688 million for the fourth quarter of fiscal 2010, an increase of 39 percent in U.S. dollars and 23 percent in local currency. |
Full Year Fiscal 2011
Net revenues for the full 2011 fiscal year were $25.5 billion, compared with $21.6 billion for fiscal 2010, an increase of 18 percent in U.S. dollars and 15 percent in local currency. Net revenues for fiscal 2011 reflect a foreign-exchange impact of positive 3 percent compared with fiscal 2010.
| • | Consulting net revenues were $14.9 billion, an increase of 21 percent in U.S. dollars and 17 percent in local currency compared with fiscal 2010. |
| • | Outsourcing net revenues were $10.6 billion, an increase of 15 percent in U.S. dollars and 13 percent in local currency compared with fiscal 2010. |
Diluted EPS for the full fiscal year were $3.40, compared with $2.66 for fiscal 2010, an increase of 28 percent. The $0.74 increase in EPS reflects:
| • | $0.42 from higher revenue and operating results in local currency; |
| • | $0.11 from a lower share count; |
| • | $0.09 from a lower effective tax rate; |
| • | $0.08 from favorable foreign-exchange rates compared with fiscal 2010; and |
| • | $0.04 from higher non-operating income. |
Operating income for the full fiscal year was $3.47 billion, or 13.6 percent of net revenues, compared with $2.91 billion, or 13.5 percent of net revenues, for fiscal 2010, an expansion of 10 basis points.
Gross margin (gross profit as a percentage of net revenues) for fiscal 2011 was 32.9 percent, compared with 33.6 percent for fiscal 2010. Selling, general and administrative (SG&A) expenses for the full fiscal year were $4.91 billion, or approximately 19.2 percent of net revenues, compared with $4.33 billion, or approximately 20.0 percent of net revenues, for fiscal 2010.
Accenture’s annual effective tax rate for the full fiscal year was 27.3 percent, compared with 29.3 percent for fiscal 2010, in line with the company’s guided range of 27 percent to 28 percent.
Net income for the full fiscal year was $2.55 billion, compared with $2.06 billion for fiscal 2010.
For the year ended Aug. 31, 2011, operating cash flow was $3.44 billion and property and equipment additions were $404 million. Free cash flow, defined as operating cash flow net of property and equipment additions, was $3.04 billion, exceeding the company’s previously guided range of $2.5 billion to $2.7 billion. For the prior fiscal year, ended Aug. 31, 2010, operating cash flow was $3.09 billion, property and equipment additions were $238 million, and free cash flow was $2.85 billion.
Utilization for the full fiscal year 2011 was 86 percent. Attrition for the full year was 14 percent, compared with 15 percent for fiscal 2010.
New Bookings
New bookings for the full fiscal year were $28.8 billion, an increase of 15 percent in U.S. dollars and 12 percent in local currency over fiscal 2010. New bookings for fiscal 2011 reflect a positive 3 percent foreign-currency impact compared with fiscal 2010.
| • | Consulting new bookings were $15.4 billion, an increase of 13 percent in U.S. dollars and 10 percent in local currency over fiscal 2010. Consulting represented 53 percent of new bookings in fiscal 2011. |
| • | Outsourcing new bookings were $13.4 billion, an increase of 18 percent in U.S. dollars and 14 percent in local currency compared with fiscal 2010. Outsourcing represented 47 percent of new bookings in fiscal 2011. |
Net Revenues by Operating Group
All of Accenture’s operating groups grew revenues in both local currency and U.S. dollars in fiscal 2011 compared with fiscal 2010. Net revenues by operating group for the full fiscal year were as follows:
| • | Communications & High Tech: $5.4 billion, compared with $4.6 billion for fiscal 2010, an increase of 18 percent in U.S. dollars and 14 percent in local currency. |
| • | Financial Services: $5.4 billion, compared with $4.4 billion for fiscal 2010, an increase of 21 percent in U.S. dollars and 18 percent in local currency. |
| • | Health & Public Service: $3.9 billion, compared with $3.6 billion for fiscal 2010, an increase of 8 percent in U.S. dollars and 7 percent in local currency. |
| • | Products: $5.9 billion, compared with $5.0 billion for fiscal 2010, an increase of 19 percent in U.S. dollars and 16 percent in local currency. |
| • | Resources: $4.9 billion, compared with $3.9 billion for fiscal 2010, an increase of 25 percent in U.S. dollars and 21 percent in local currency. |
Net Revenues by Geographic Region
Net revenues by geographic region for the full fiscal year were as follows:
| • | Americas: $11.3 billion, compared with $9.5 billion for fiscal 2010, an increase of 19 percent in U.S. dollars and 17 percent in local currency. |
| • | Europe, Middle East and Africa (EMEA): $10.9 billion, compared with $9.6 billion for fiscal 2010, an increase of 13 percent in U.S. dollars and 11 percent in local currency. |
| • | Asia Pacific: $3.4 billion, compared with $2.5 billion for fiscal 2010, an increase of 35 percent in U.S. dollars and 23 percent in local currency. |
Dividend
Accenture plc has declared a semi-annual cash dividend of 67.5 cents per share on Accenture plc Class A ordinary shares for shareholders of record at the close of business on Oct. 14, 2011, and Accenture SCA will declare a semi-annual cash dividend of 67.5 cents per share on Accenture SCA Class I common shares for shareholders of record at the close of business on Oct. 11, 2011. Both dividends are payable on Nov. 15. This represents an increase of 22.5 cents per share, or 50 percent, over the company’s previous semi-annual dividend, declared in March.
Share Repurchase Activity
During the fourth quarter of fiscal 2011, Accenture repurchased or redeemed 13.1 million shares for a total of $731 million, including $621 million for 11.3 million shares repurchased on the open market. During the full fiscal year 2011, Accenture repurchased or redeemed 42.8 million shares for a total of $2.17 billion, including $1.31 billion for 24.3 million shares repurchased in the open market. The Accenture Board of Directors has approved $5 billion in additional share repurchase authority, bringing Accenture’s total outstanding authority to approximately $6 billion.
At Aug. 31, 2011, Accenture had approximately 704 million total shares outstanding, including 641 million Accenture plc Class A ordinary shares and minority holdings of 63 million shares (Accenture SCA Class I common shares and Accenture Canada Holdings Inc. exchangeable shares).
Business Outlook
First Quarter Fiscal 2012
Accenture expects net revenues for the first quarter of fiscal 2012 to be in the range of $6.8 billion to $7.0 billion, which assumes a foreign-exchange impact of positive 3 percent compared with the first quarter of fiscal 2011.
Fiscal Year 2012
Accenture’s business outlook for the full 2012 fiscal year assumes a foreign-exchange impact of zero percent compared with fiscal 2011.
For fiscal 2012, the company expects net revenue growth to be in the range of 7 percent to 10 percent in local currency. The company expects diluted EPS growth to be in the range of 12 percent to 14 percent, or $3.80 to $3.88. These ranges for revenue and EPS growth are consistent with the preliminary business outlook the company provided at its Investor & Analyst Conference in April.
Accenture expects operating margin for the full fiscal year to be in the range of 13.7 percent to 13.9 percent, an expansion of 10 to 30 basis points.
The company expects operating cash flow to be $3.6 billion to $3.9 billion; property and equipment additions to be $490 million; and free cash flow to be in the range of $3.1 billion to $3.4 billion. The annual effective tax rate is expected to be in the range of 27 percent to 28 percent.
Accenture is targeting new bookings for fiscal 2012 in the range of $28 billion to $31 billion.
Conference Call and Webcast Details
Accenture will host a conference call at 4:30 p.m. EDT today to discuss its fourth-quarter and full-year fiscal 2011 financial results. To participate, please dial +1 (800) 230-1092 [+1 (612) 288-0340 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 7:00 p.m. EDT today, Tuesday, Sept. 27, and continuing until Wednesday, Dec. 14, 2011. A podcast of the conference call will be available online at www.accenture.com beginning approximately 24 hours after the call and continuing until Wednesday, Dec. 14. 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 214430 from 7:00 p.m. EDT today, Tuesday, Sept. 27, through Wednesday, Dec. 14.
About Accenture
Accenture is a global management consulting, technology services and outsourcing company, with approximately 236,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page is www.accenture.com.
Non-GAAP Financial Information
This press release includes certain non-GAAP financial information as defined by Securities and Exchange Commission Regulation G. Pursuant to the requirements of this regulation, reconciliations of this non-GAAP financial information to Accenture’s financial statements as prepared under generally accepted accounting principles (GAAP) are included in this press release. Financial results “in local currency” are calculated by restating current-period activity into U.S. dollars using the comparable prior-year period’s foreign-currency exchange rates. Accenture’s management believes providing investors with this information gives additional insights into Accenture’s results of operations. While Accenture’s management believes that the non-GAAP financial measures herein are useful in evaluating Accenture’s operations, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP.
Forward-Looking Statements
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: the company’s results of operations could be adversely affected by volatile, negative or uncertain economic or geopolitical conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; if the company is unable to keep its supply of skills and resources in balance with client demand around the world, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; the company’s results of operations and ability to grow could be materially negatively affected if the company cannot adapt and expand its services and solutions in response to changes in technology and client demand; the consulting and outsourcing markets are highly competitive and the company might not be able to compete effectively; work with government clients exposes the company to additional risks inherent in the government contracting environment, including risks related to governmental budget and debt constraints; clients may not be satisfied with the company’s services; results of operations could be materially adversely affected if clients terminate their contracts with the company; outsourcing services subject the company to additional risks; results of operations could materially suffer if the company is not able to obtain favorable pricing; the company’s business could be materially adversely affected if it incurs legal liability in connection with providing its services and solutions; if the company’s pricing estimates do not accurately anticipate the cost and complexity of performing work, then the company’s contracts could be unprofitable; many of the company’s contracts include performance payments that link some of the company’s fees to the attainment of performance or business targets and this could increase the variability of the company’s revenues and margins; the company’s ability to attract and retain business may depend on its reputation in the marketplace; the company’s alliance relationships may not be successful or may change, which could adversely affect the company’s results of operations; the company’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; as a result of the company’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; the company’s results of operations could be materially adversely affected by unfavorable fluctuations in foreign currency exchange rates; the company could have liability or the company’s reputation could be damaged if the company fails to protect client data and company data or information systems as obligated by law or contract or if the company’s information systems are breached; the company could be subject to liabilities or damage to its relationships with clients if subcontractors or the third parties with whom the
company partners cannot meet their commitments on time or at all; the company’s services or solutions could infringe upon the intellectual property rights of others or the company might lose its ability to utilize the intellectual property of others; the company has only a limited ability to protect its intellectual property rights, which are important to the company’s success; changes in the company’s level of taxes, and audits, investigations and tax proceedings, could have a material adverse effect on the company’s results of operations and financial condition; the company’s profitability could suffer if its cost-management strategies are unsuccessful; if the company is unable to collect its receivables or unbilled services, the company’s results of operations, financial condition and cash flows could be adversely affected; the company may be subject to criticism, negative publicity and legislative or regulatory action related to its incorporation in Ireland; if the company is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; the company may not be successful at identifying, acquiring or integrating other businesses; consolidation in the industries the company serves could adversely affect its business; the company’s share price could fluctuate and be difficult to predict; 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.
###
Contact:
Roxanne Taylor
Accenture
+1 (917) 452-5106
roxanne.taylor@accenture.com
ACCENTURE PLC
CONSOLIDATED INCOME STATEMENTS
(In thousands of U.S. dollars, except share and per share amounts)
(Unaudited)
| Three Months Ended August 31, | Year Ended August 31, | |||||||||||||||||||||||||||||||
| 2011 | % of Net Revenues |
2010 | % of Net Revenues |
2011 | % of Net Revenues |
2010 | % of Net Revenues |
|||||||||||||||||||||||||
| REVENUES: |
||||||||||||||||||||||||||||||||
| Revenues before reimbursements (“Net revenues”) |
$ | 6,687,650 | 100 | % | $ | 5,420,581 | 100 | % | $ | 25,507,036 | 100 | % | $ | 21,550,568 | 100 | % | ||||||||||||||||
| Reimbursements |
486,423 | 412,492 | 1,845,878 | 1,543,510 | ||||||||||||||||||||||||||||
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| Revenues |
7,174,073 | 5,833,073 | 27,352,914 | 23,094,078 | ||||||||||||||||||||||||||||
| OPERATING EXPENSES: |
||||||||||||||||||||||||||||||||
| Cost of services: |
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| Cost of services before reimbursable expenses |
4,472,263 | 66.9 | % | 3,575,769 | 66.0 | % | 17,120,317 | 67.1 | % | 14,299,821 | 66.4 | % | ||||||||||||||||||||
| Reimbursable expenses |
486,423 | 412,492 | 1,845,878 | 1,543,510 | ||||||||||||||||||||||||||||
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| Cost of services |
4,958,686 | 3,988,261 | 18,966,195 | 15,843,331 | ||||||||||||||||||||||||||||
| Sales and marketing |
820,841 | 12.3 | % | 698,325 | 12.9 | % | 3,094,465 | 12.1 | % | 2,658,058 | 12.3 | % | ||||||||||||||||||||
| General and administrative costs |
471,610 | 7.1 | % | 432,793 | 8.0 | % | 1,820,277 | 7.1 | % | 1,668,306 | 7.7 | % | ||||||||||||||||||||
| Reorganization costs, net |
407 | 60 | 1,520 | 9,538 | ||||||||||||||||||||||||||||
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| Total operating expenses |
6,251,544 | 5,119,439 | 23,882,457 | 20,179,233 | ||||||||||||||||||||||||||||
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| OPERATING INCOME |
922,529 | 13.8 | % | 713,634 | 13.2 | % | 3,470,457 | 13.6 | % | 2,914,845 | 13.5 | % | ||||||||||||||||||||
| (Loss) gain on investments, net |
(145 | ) | (35 | ) | (1,086 | ) | (6 | ) | ||||||||||||||||||||||||
| Interest income |
11,936 | 8,556 | 41,083 | 29,931 | ||||||||||||||||||||||||||||
| Interest expense |
(3,930 | ) | (3,616 | ) | (15,000 | ) | (14,677 | ) | ||||||||||||||||||||||||
| Other income (expense), net |
5,008 | (1,945 | ) | 16,568 | (15,724 | ) | ||||||||||||||||||||||||||
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| INCOME BEFORE INCOME TAXES |
935,398 | 14.0 | % | 716,594 | 13.2 | % | 3,512,022 | 13.8 | % | 2,914,369 | 13.5 | % | ||||||||||||||||||||
| Provision for income taxes |
252,533 | 206,331 | 958,782 | 853,910 | ||||||||||||||||||||||||||||
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| NET INCOME |
682,865 | 10.2 | % | 510,263 | 9.4 | % | 2,553,240 | 10.0 | % | 2,060,459 | 9.6 | % | ||||||||||||||||||||
| Net income attributable to noncontrolling interests in Accenture SCA and Accenture Canada Holdings Inc. |
(60,299 | ) | (58,286 | ) | (243,575 | ) | (257,636 | ) | ||||||||||||||||||||||||
| Net income attributable to noncontrolling interests – other (1) |
(10,633 | ) | (6,495 | ) | (31,988 | ) | (22,167 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO ACCENTURE PLC |
$ | 611,933 | 9.2 | % | $ | 445,482 | 8.2 | % | $ | 2,277,677 | 8.9 | % | $ | 1,780,656 | 8.3 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| CALCULATION OF EARNINGS PER SHARE: |
||||||||||||||||||||||||||||||||
| Net income attributable to Accenture plc |
$ | 611,933 | $ | 445,482 | $ | 2,277,677 | $ | 1,780,656 | ||||||||||||||||||||||||
| Net income attributable to noncontrolling interests in Accenture SCA and Accenture Canada Holdings Inc. (2) |
60,299 | 58,286 | 243,575 | 257,636 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Net income for diluted earnings per share calculation |
$ | 672,232 | $ | 503,768 | $ | 2,521,252 | $ | 2,038,292 | ||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|||||||||||||||||||||||||
| EARNINGS PER SHARE: |
||||||||||||||||||||||||||||||||
| - Basic |
$ | 0.95 | $ | 0.70 | $ | 3.53 | $ | 2.79 | ||||||||||||||||||||||||
| - Diluted (3) |
$ | 0.91 | $ | 0.66 | $ | 3.40 | $ | 2.66 | ||||||||||||||||||||||||
| WEIGHTED AVERAGE SHARES: |
||||||||||||||||||||||||||||||||
| - Basic |
647,428,247 | 637,092,938 | 645,631,170 | 637,170,234 | ||||||||||||||||||||||||||||
| - Diluted (3) |
738,340,289 | 758,708,473 | 742,184,540 | 766,578,978 | ||||||||||||||||||||||||||||
| Cash dividends per share |
$ | — | $ | — | $ | 0.90 | $ | 1.125 | ||||||||||||||||||||||||
| (1) | Comprised primarily of noncontrolling interest attributable to the noncontrolling shareholders of Avanade, Inc. |
| (2) | Diluted earnings per share assumes the redemption of all Accenture SCA Class I common shares owned by holders of noncontrolling interests and the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis. |
| (3) | Diluted weighted average Accenture plc Class A ordinary shares and earnings per share amounts in fiscal 2010 have been restated to reflect additional restricted share units issued to holders of restricted share units in connection with the payment of cash dividends. |
ACCENTURE PLC
SUMMARY OF REVENUES
(In thousands of U.S. dollars)
(Unaudited)
| Percent Increase U.S.$ |
Percent Increase Local Currency |
|||||||||||||||
| Three Months Ended August 31, | ||||||||||||||||
| OPERATING GROUPS | 2011 | 2010 | ||||||||||||||
| Communications & High Tech (1) |
$ | 1,431,911 | $ | 1,164,475 | 23 | % | 13 | % | ||||||||
| Financial Services |
1,372,310 | 1,115,259 | 23 | 13 | ||||||||||||
| Health & Public Service |
993,657 | 856,109 | 16 | 12 | ||||||||||||
| Products |
1,586,462 | 1,267,809 | 25 | 16 | ||||||||||||
| Resources |
1,298,799 | 1,013,513 | 28 | 18 | ||||||||||||
| Other |
4,511 | 3,416 | n/m | n/m | ||||||||||||
|
|
|
|
|
|||||||||||||
| TOTAL Net Revenues |
6,687,650 | 5,420,581 | 23 | % | 14 | % | ||||||||||
| Reimbursements |
486,423 | 412,492 | 18 | |||||||||||||
|
|
|
|
|
|||||||||||||
| TOTAL REVENUES |
$ | 7,174,073 | $ | 5,833,073 | 23 | % | ||||||||||
|
|
|
|
|
|||||||||||||
| GEOGRAPHY |
||||||||||||||||
| Americas |
$ | 3,041,001 | $ | 2,519,671 | 21 | % | 18 | % | ||||||||
| EMEA |
2,689,793 | 2,213,375 | 22 | 8 | ||||||||||||
| Asia Pacific |
956,856 | 687,535 | 39 | 23 | ||||||||||||
|
|
|
|
|
|||||||||||||
| TOTAL Net Revenues |
$ | 6,687,650 | $ | 5,420,581 | 23 | % | 14 | % | ||||||||
|
|
|
|
|
|||||||||||||
| TYPE OF WORK |
||||||||||||||||
| Consulting |
$ | 3,881,006 | $ | 3,094,287 | 25 | % | 16 | % | ||||||||
| Outsourcing |
2,806,644 | 2,326,294 | 21 | 13 | ||||||||||||
|
|
|
|
|
|||||||||||||
| TOTAL Net Revenues |
$ | 6,687,650 | $ | 5,420,581 | 23 | % | 14 | % | ||||||||
|
|
|
|
|
|||||||||||||
| Percent Increase U.S.$ |
Percent Increase Local Currency |
|||||||||||||||
| Year Ended August 31, | ||||||||||||||||
| OPERATING GROUPS | 2011 | 2010 | ||||||||||||||
| Communications & High Tech (1) |
$ | 5,434,024 | $ | 4,612,290 | 18 | % | 14 | % | ||||||||
| Financial Services |
5,380,674 | 4,446,038 | 21 | 18 | ||||||||||||
| Health & Public Service |
3,861,146 | 3,580,802 | 8 | 7 | ||||||||||||
| Products |
5,931,333 | 4,985,347 | 19 | 16 | ||||||||||||
| Resources |
4,882,248 | 3,911,041 | 25 | 21 | ||||||||||||
| Other |
17,611 | 15,050 | n/m | n/m | ||||||||||||
|
|
|
|
|
|||||||||||||
| TOTAL Net Revenues |
25,507,036 | 21,550,568 | 18 | % | 15 | % | ||||||||||
| Reimbursements |
1,845,878 | 1,543,510 | 20 | |||||||||||||
|
|
|
|
|
|||||||||||||
| TOTAL REVENUES |
$ | 27,352,914 | $ | 23,094,078 | 18 | % | ||||||||||
|
|
|
|
|
|||||||||||||
| GEOGRAPHY |
||||||||||||||||
| Americas |
$ | 11,270,668 | $ | 9,465,357 | 19 | % | 17 | % | ||||||||
| EMEA |
10,853,684 | 9,583,268 | 13 | 11 | ||||||||||||
| Asia Pacific |
3,382,684 | 2,501,943 | 35 | 23 | ||||||||||||
|
|
|
|
|
|||||||||||||
| TOTAL Net Revenues |
$ | 25,507,036 | $ | 21,550,568 | 18 | % | 15 | % | ||||||||
|
|
|
|
|
|||||||||||||
| TYPE OF WORK |
||||||||||||||||
| Consulting |
$ | 14,924,187 | $ | 12,371,268 | 21 | % | 17 | % | ||||||||
| Outsourcing |
10,582,849 | 9,179,300 | 15 | 13 | ||||||||||||
|
|
|
|
|
|||||||||||||
| TOTAL Net Revenues |
$ | 25,507,036 | $ | 21,550,568 | 18 | % | 15 | % | ||||||||
|
|
|
|
|
|||||||||||||
n/m = not meaningful
| (1) | On Sept. 1, 2011, Accenture changed the name of its Communications & High Tech operating group to Communications, Media & Technology. The three industries that make up the operating group — Communications, Electronics & High Tech, and Media & Entertainment — remain the same. |
ACCENTURE PLC
OPERATING INCOME BY OPERATING GROUP (OG)
(In thousands of U.S. dollars)
(Unaudited)
| Three Months Ended August 31, | ||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| OPERATING GROUPS | Operating Income |
Operating Margin |
Operating Income |
Operating Margin |
Increase (Decrease) |
|||||||||||||||
| Communications & High Tech (1) |
$ | 188,444 | 13 | % | $ | 160,598 | 14 | % | $ | 27,846 | ||||||||||
| Financial Services |
187,312 | 14 | 191,382 | 17 | (4,070 | ) | ||||||||||||||
| Health & Public Service |
100,715 | 10 | 40,219 | 5 | 60,496 | |||||||||||||||
| Products |
206,169 | 13 | 151,129 | 12 | 55,040 | |||||||||||||||
| Resources |
239,889 | 18 | 170,306 | 17 | 69,583 | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
| Total |
$ | 922,529 | 13.8 | % | $ | 713,634 | 13.2 | % | $ | 208,895 | ||||||||||
|
|
|
|
|
|
|
|||||||||||||||
| Year Ended August 31, | ||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| OPERATING GROUPS | Operating Income |
Operating Margin |
Operating Income |
Operating Margin |
Increase | |||||||||||||||
| Communications & High Tech (1) |
$ | 727,761 | 13 | % | $ | 614,777 | 13 | % | $ | 112,984 | ||||||||||
| Financial Services |
898,287 | 17 | 772,499 | 17 | 125,788 | |||||||||||||||
| Health & Public Service |
318,430 | 8 | 286,510 | 8 | 31,920 | |||||||||||||||
| Products |
679,716 | 11 | 592,152 | 12 | 87,564 | |||||||||||||||
| Resources |
846,263 | 17 | 648,907 | 17 | 197,356 | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
| Total |
$ | 3,470,457 | 13.6 | % | $ | 2,914,845 | 13.5 | % | $ | 555,612 | ||||||||||
|
|
|
|
|
|
|
|||||||||||||||
| (1) | On Sept. 1, 2011, Accenture changed the name of its Communications & High Tech operating group to Communications, Media & Technology. The three industries that make up the operating group — Communications, Electronics & High Tech, and Media & Entertainment — remain the same. |
ACCENTURE PLC
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
| August 31, 2011 | August 31, 2010 | |||||||
| (Unaudited) | ||||||||
| ASSETS |
||||||||
| CURRENT ASSETS: |
||||||||
| Cash and cash equivalents |
$ | 5,701,078 | $ | 4,838,292 | ||||
| Short-term investments |
4,929 | 2,987 | ||||||
| Receivables from clients, net |
3,236,059 | 2,534,598 | ||||||
| Unbilled services, net |
1,385,733 | 1,127,827 | ||||||
| Other current assets |
1,143,384 | 1,059,921 | ||||||
|
|
|
|
|
|||||
| Total current assets |
11,471,183 | 9,563,625 | ||||||
|
|
|
|
|
|||||
| NON-CURRENT ASSETS: |
||||||||
| Unbilled services, net |
49,192 | 54,310 | ||||||
| Investments |
40,365 | 41,023 | ||||||
| Property and equipment, net |
785,231 | 659,569 | ||||||
| Other non-current assets |
3,385,539 | 2,516,726 | ||||||
|
|
|
|
|
|||||
| Total non-current assets |
4,260,327 | 3,271,628 | ||||||
|
|
|
|
|
|||||
| TOTAL ASSETS |
$ | 15,731,510 | $ | 12,835,253 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| CURRENT LIABILITIES: |
||||||||
| Current portion of long-term debt and bank borrowings |
$ | 4,419 | $ | 143 | ||||
| Accounts payable |
949,250 | 885,328 | ||||||
| Deferred revenues |
2,219,270 | 1,772,833 | ||||||
| Accrued payroll and related benefits |
3,259,252 | 2,683,492 | ||||||
| Other accrued liabilities |
1,474,398 | 1,225,808 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
7,906,589 | 6,567,604 | ||||||
|
|
|
|
|
|||||
| NON-CURRENT LIABILITIES: |
||||||||
| Long-term debt |
— | 1,445 | ||||||
| Other non-current liabilities |
3,474,049 | 2,991,481 | ||||||
|
|
|
|
|
|||||
| Total non-current liabilities |
3,474,049 | 2,992,926 | ||||||
|
|
|
|
|
|||||
| TOTAL ACCENTURE PLC SHAREHOLDERS’ EQUITY |
3,878,951 | 2,835,746 | ||||||
| NONCONTROLLING INTERESTS |
471,921 | 438,977 | ||||||
|
|
|
|
|
|||||
| TOTAL SHAREHOLDERS’ EQUITY |
4,350,872 | 3,274,723 | ||||||
|
|
|
|
|
|||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | 15,731,510 | $ | 12,835,253 | ||||
|
|
|
|
|
|||||
ACCENTURE PLC
CONSOLIDATED CASH FLOWS STATEMENTS
(In thousands of U.S. dollars)
(Unaudited)
| Three Months Ended August 31, | Year Ended August 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||||||||
| Net income |
$ | 682,865 | $ | 510,263 | $ | 2,553,240 | $ | 2,060,459 | ||||||||
| Depreciation, amortization and asset impairments |
141,340 | 124,958 | 513,256 | 474,688 | ||||||||||||
| Share-based compensation expense |
106,419 | 99,193 | 450,137 | 425,822 | ||||||||||||
| Change in assets and liabilities/other, net |
450,652 | 517,191 | (74,894 | ) | 130,651 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash provided by operating activities |
1,381,276 | 1,251,605 | 3,441,739 | 3,091,620 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||||||||||
| Purchases of property and equipment |
(136,975 | ) | (101,602 | ) | (403,714 | ) | (238,215 | ) | ||||||||
| Purchases of businesses and investments, net of cash acquired |
(187,525 | ) | (12,545 | ) | (306,187 | ) | (41,075 | ) | ||||||||
| Other investing, net |
3,370 | 4,227 | 6,514 | 5,525 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash used in investing activities |
(321,130 | ) | (109,920 | ) | (703,387 | ) | (273,765 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||||||||||
| Proceeds from issuance of ordinary shares |
89,003 | 45,840 | 557,366 | 437,025 | ||||||||||||
| Purchases of shares |
(730,804 | ) | (738,396 | ) | (2,171,877 | ) | (2,070,875 | ) | ||||||||
| Cash dividends paid |
— | — | (643,642 | ) | (824,148 | ) | ||||||||||
| Other financing, net |
27,266 | (13,850 | ) | 136,649 | 28,972 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash used in financing activities |
(614,535 | ) | (706,406 | ) | (2,121,504 | ) | (2,429,026 | ) | ||||||||
| Effect of exchange rate changes on cash and cash equivalents |
(1,217 | ) | 90,902 | 245,938 | (92,199 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS |
444,394 | 526,181 | 862,786 | 296,630 | ||||||||||||
| CASH AND CASH EQUIVALENTS, beginning of period |
5,256,684 | 4,312,111 | 4,838,292 | 4,541,662 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| CASH AND CASH EQUIVALENTS, end of period |
$ | 5,701,078 | $ | 4,838,292 | $ | 5,701,078 | $ | 4,838,292 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||