NEW YORK--(BUSINESS WIRE)--Accenture (NYSE: ACN) reported very strong financial results for the fourth quarter and full fiscal year ended Aug. 31, 2019.
For the fourth quarter, revenues were $11.1 billion, an increase of 5 percent in U.S. dollars and 7.2 percent in local currency compared with the fourth quarter of fiscal 2018. Diluted earnings per share were $1.74, a 10 percent increase from $1.58 for the fourth quarter last year. Operating margin for the fourth quarter of fiscal 2019 was 14.2 percent, an expansion of 20 basis points. Operating cash flow was $2.1 billion and free cash flow was $1.9 billion. New bookings were $12.9 billion.
For the full fiscal year, revenues were $43.2 billion, an increase of 5 percent in U.S. dollars and 8.5 percent in local currency compared with fiscal 2018. Diluted earnings per share were $7.36, compared with $6.34 in fiscal 2018, which included $0.40 in charges related to tax law changes. Diluted EPS for fiscal 2019 increased 9 percent from adjusted diluted EPS of $6.74 in fiscal 2018. Operating margin for fiscal 2019 was 14.6 percent, an expansion of 20 basis points. Operating cash flow for fiscal 2019 was $6.6 billion and free cash flow was $6.0 billion. New bookings were $45.5 billion.
As previously disclosed, the company is moving from a semi-annual to a quarterly schedule for dividend payments in fiscal 2020. Accenture’s Board of Directors has declared a quarterly cash dividend of $0.80 per share. In fiscal 2019, the company paid semi-annual cash dividends of $1.46 per share. The new quarterly dividend represents a 10 percent increase over the equivalent quarterly rate last year.
Julie Sweet, Accenture’s chief executive officer, said, “I am proud that we have delivered another year of outstanding financial results, meeting or exceeding all the objectives in our initial business outlook for fiscal 2019. For the year, our record new bookings of $45.5 billion and revenue growth of 8.5 percent in local currency demonstrate excellent demand for our services, and we gained significant market share. We also delivered very strong profitability and returned a record $4.6 billion in cash to our shareholders, while continuing to invest across the business. As we look ahead to fiscal 2020, we will continue to be laser-focused on creating value for our clients, being a magnet for the best people in the industry and maximizing shareholder value.”
Financial Review
Effective Sept. 1, 2018, Accenture adopted new accounting standards that affect the accounting for revenue and pension costs. Prior-period results have been revised to reflect the fiscal 2019 presentation, and the revised fiscal 2018 and 2017 results are available at investor.accenture.com.
Fourth Quarter Fiscal 2019
Revenues for the fourth quarter of fiscal 2019 were $11.06 billion, compared with $10.50 billion for the fourth quarter of fiscal 2018, an increase of 5 percent in U.S. dollars and 7.2 percent in local currency, within the company’s guided range of $10.85 billion to $11.15 billion. The foreign-exchange impact for the quarter was approximately negative 2 percent, consistent with the assumption provided in the company’s third-quarter earnings release.
- Consulting revenues were $6.19 billion, an increase of 5 percent in U.S. dollars and 7 percent in local currency compared with the fourth quarter of fiscal 2018.
- Outsourcing revenues were $4.87 billion, an increase of 6 percent in U.S. dollars and 8 percent in local currency compared with the fourth quarter of fiscal 2018.
Diluted EPS for the fourth quarter were $1.74, compared with $1.58 for the fourth quarter last year. The $0.16, or 10 percent, increase in EPS reflects:
- an $0.11 increase from higher revenue and operating results;
- a $0.04 increase from a lower effective tax rate; and
- a $0.01 increase from a lower share count.
Gross margin (gross profit as a percentage of revenues) for the fourth quarter was 31.1 percent, compared with 30.8 percent for the fourth quarter of fiscal 2018. Selling, general and administrative (SG&A) expenses for the fourth quarter were $1.86 billion, or 16.9 percent of revenues, compared with $1.77 billion, or 16.8 percent of revenues, for the fourth quarter of fiscal 2018.
Operating income for the fourth quarter of fiscal 2019 was $1.57 billion, or 14.2 percent of revenues, compared with $1.47 billion, or 14.0 percent of revenues, for the fourth quarter of fiscal 2018. Operating margin for the fourth quarter of fiscal 2019 expanded 20 basis points.
The company’s effective tax rate for the fourth quarter was 26.6 percent, compared with 28.0 percent for the fourth quarter of fiscal 2018.
Net income for the quarter was $1.15 billion, compared with $1.05 billion for the fourth quarter last year.
Operating cash flow for the fourth quarter was $2.12 billion, and property and equipment additions were $241 million. Free cash flow, defined as operating cash flow net of property and equipment additions, was $1.87 billion. For the same period of fiscal 2018, operating cash flow was $2.11 billion, property and equipment additions were $179 million, and free cash flow was $1.93 billion.
Days services outstanding, or DSOs, were 40 days at Aug. 31, 2019, compared with 39 days at Aug. 31, 2018.
Accenture’s total cash balance at Aug. 31, 2019 was $6.1 billion, compared with $5.1 billion at Aug. 31, 2018.
New Bookings
New bookings for the fourth quarter were $12.9 billion and reflect a negative 2 percent foreign-exchange impact compared with new bookings in the fourth quarter of fiscal 2018.
- Consulting new bookings were $6.1 billion, or 47 percent of total new bookings.
- Outsourcing new bookings were $6.8 billion, or 53 percent of total new bookings.
Revenues by Operating Group
Revenues by operating group for the fourth quarter were as follows:
- Communications, Media & Technology: $2.22 billion, compared with $2.14 billion for the fourth quarter of fiscal 2018, an increase of 4 percent in U.S. dollars and 5 percent in local currency.
- Financial Services: $2.12 billion, compared with $2.09 billion for the fourth quarter of fiscal 2018, an increase of 2 percent in U.S. dollars and 4 percent in local currency.
- Health & Public Service: $1.88 billion, compared with $1.76 billion for the fourth quarter of fiscal 2018, an increase of 7 percent in U.S. dollars and 8 percent in local currency.
- Products: $3.09 billion, compared with $2.92 billion for the fourth quarter of fiscal 2018, an increase of 6 percent in U.S. dollars and 8 percent in local currency.
- Resources: $1.73 billion, compared with $1.59 billion for the fourth quarter of fiscal 2018, an increase of 9 percent in U.S. dollars and 12 percent in local currency.
Revenues by Geographic Region
Revenues by geographic region for the fourth quarter were as follows:
- North America: $5.23 billion, compared with $4.86 billion for the fourth quarter of fiscal 2018, an increase of 8 percent in both U.S. dollars and local currency.
- Europe: $3.57 billion, compared with $3.57 billion for the fourth quarter of fiscal 2018, flat in U.S. dollars and an increase of 4 percent in local currency.
- Growth Markets: $2.26 billion, compared with $2.08 billion for the fourth quarter of fiscal 2018, an increase of 9 percent in U.S. dollars and 12 percent in local currency.
Full Year Fiscal 2019
Revenues for the full 2019 fiscal year were $43.2 billion, compared with $41.0 billion for fiscal 2018, an increase of 5 percent in U.S. dollars and 8.5 percent in local currency. Revenues for fiscal 2019 reflect a foreign-exchange impact of approximately negative 3 percent compared with fiscal 2018.
- Consulting revenues were $24.2 billion, an increase of 5 percent in U.S. dollars and 8 percent in local currency compared with fiscal 2018.
- Outsourcing revenues were $19.0 billion, an increase of 6 percent in U.S. dollars and 9 percent in local currency compared with fiscal 2018.
Diluted EPS for the full 2019 fiscal year were $7.36, compared with $6.34 for fiscal 2018, which included $0.40 in charges related to tax law changes. Excluding these charges, diluted EPS for fiscal 2018 were $6.74. The $0.62, or 9 percent, increase in EPS on an adjusted basis in fiscal 2019 reflects:
- a $0.48 increase from higher revenue and operating results; and
- a $0.05 increase from a lower effective tax rate;
- a $0.05 increase from a lower share count; and
- a $0.04 increase from lower non-operating expense.
Gross margin (gross profit as a percentage of revenues) for fiscal 2019 was 30.8 percent, compared with 30.5 percent for fiscal 2018. Selling, general and administrative (SG&A) expenses for the full fiscal year were $7.01 billion, or 16.2 percent of revenues, compared with $6.59 billion, or 16.1 percent of revenues, for fiscal 2018.
Operating income for the full fiscal year was $6.31 billion, or 14.6 percent of revenues, compared with $5.90 billion, or 14.4 percent of revenues in fiscal 2018.
Accenture’s annual effective tax rate for fiscal 2019 was 22.5 percent, compared with 27.4 percent in fiscal 2018. Excluding the impact of the charges related to tax law changes, the effective tax rate in fiscal 2018 was 23.0 percent.
Net income for the full fiscal year was $4.85 billion, compared with $4.21 billion for fiscal 2018. Excluding the $258 million impact of the charges related to tax law changes, net income in fiscal 2018 was $4.47 billion.
For the full 2019 fiscal year, operating cash flow was $6.63 billion and property and equipment additions were $599 million. Free cash flow, defined as operating cash flow net of property and equipment additions, was $6.03 billion. For fiscal 2018, operating cash flow was $6.03 billion, property and equipment additions were $619 million, and free cash flow was $5.41 billion.
New Bookings
New bookings for the full fiscal year were $45.5 billion and reflect a negative 3 percent foreign-exchange impact compared with new bookings in fiscal 2018.
- Consulting new bookings were $24.7 billion, or 54 percent of total new bookings.
- Outsourcing new bookings were $20.8 billion, or 46 percent of total new bookings.
Revenues by Operating Group
Revenues by operating group for the full fiscal year were as follows:
- Communications, Media & Technology: $8.76 billion, compared with $8.23 billion for fiscal 2018, an increase of 6 percent in U.S. dollars and 9 percent in local currency.
- Financial Services: $8.49 billion, compared with $8.57 billion for fiscal 2018, a decrease of 1 percent in U.S. dollars and an increase of 3 percent in local currency.
- Health & Public Service: $7.16 billion, compared with $6.88 billion for fiscal 2018, an increase of 4 percent in U.S. dollars and 6 percent in local currency.
- Products: $12.00 billion, compared with $11.34 billion for fiscal 2018, an increase of 6 percent in U.S. dollars and 9 percent in local currency.
- Resources: $6.77 billion, compared with $5.94 billion for fiscal 2018, an increase of 14 percent in U.S. dollars and 18 percent in local currency.
Revenues by Geographic Region
Revenues by geographic region for the full fiscal year were as follows:
- North America: $19.99 billion, compared with $18.46 billion for fiscal 2018, an increase of 8 percent in U.S. dollars and 9 percent in local currency.
- Europe: $14.68 billion, compared with $14.63 billion for fiscal 2018, flat in U.S. dollars and an increase of 5 percent in local currency.
- Growth Markets: $8.55 billion, compared with $7.91 billion for fiscal 2018, an increase of 8 percent in U.S. dollars and 14 percent in local currency.
Returning Cash to Shareholders
Accenture continues to return cash to shareholders through cash dividends and share repurchases. In fiscal 2019, the company returned $4.56 billion to shareholders, including $1.86 billion in cash dividends and $2.69 billion in share repurchases.
Dividend
As previously disclosed, the company is moving from a semi-annual to a quarterly schedule for dividend payments in fiscal 2020. Accenture plc has declared its first quarterly cash dividend of $0.80 per share for shareholders of record at the close of business on Oct. 17, 2019. This dividend is payable on Nov. 15, 2019.
In fiscal 2019, the company paid semi-annual cash dividends of $1.46 per share, equivalent to quarterly payments of $0.73 per share. The new quarterly dividend of $0.80 per share represents a 10 percent increase over the equivalent quarterly rate in fiscal 2019.
Share Repurchase Activity
During the fourth quarter of fiscal 2019, Accenture repurchased or redeemed 2.1 million shares, including 2.0 million shares repurchased in the open market, for a total of $407 million. During the full fiscal year 2019, Accenture repurchased or redeemed 16.6 million shares, including 13.7 million shares repurchased in the open market, for a total of $2.69 billion.
At Aug. 31, 2019, Accenture had approximately 636 million total shares outstanding.
Business Outlook
First Quarter Fiscal 2020
Accenture expects revenues for the first quarter of fiscal 2020 to be in the range of $10.9 billion to $11.2 billion, 5 percent to 8 percent growth in local currency, reflecting the company’s assumption of a negative 2 percent foreign-exchange impact compared with the first quarter of fiscal 2019.
Fiscal Year 2020
Accenture’s business outlook for the full 2020 fiscal year assumes that the foreign-exchange impact on its results in U.S. dollars will be negative 1 percent compared with fiscal 2019.
For fiscal 2020, the company expects revenue growth to be in the range of 5 percent to 8 percent in local currency.
Accenture expects operating margin for the full fiscal year to be in the range of 14.7 percent to 14.9 percent, an expansion of 10 to 30 basis points from fiscal 2019.
The company expects its annual effective tax rate to be in the range of 23.5 percent to 25.5 percent.
The company expects diluted EPS to be in the range of $7.62 to $7.84, or 4 percent to 7 percent growth.
For fiscal 2020, the company expects operating cash flow to be in the range of $6.35 billion to $6.75 billion; property and equipment additions to be $650 million; and free cash flow to be in the range of $5.7 billion to $6.1 billion.
Conference Call and Webcast Details
Accenture will host a conference call at 8:00 a.m. EDT today to discuss its fourth-quarter financial results. To participate, please dial +1 (800) 230-1059 [+1 (612) 234-9959 outside the United States, Puerto Rico and Canada] approximately 15 minutes before the scheduled start of the call. The conference call will also be accessible live on the Investor Relations section of the Accenture Web site at www.accenture.com.
A replay of the conference call will be available online at www.accenture.com beginning at 10:30 a.m. EDT today, Sept. 26, and continuing until Thursday, Sept. 26, 2019. The replay will also be available via telephone by dialing +1 (800) 475-6701 [+1 (320) 365-3844 outside the United States, Puerto Rico and Canada] and entering access code 471195 from 10:30 a.m. EDT today, Sept. 26, through Thursday, Dec. 19, 2019.
About Accenture
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions — underpinned by the world’s largest delivery network — Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With 492,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.
Non-GAAP Financial Information
This news release includes certain non-GAAP financial information as defined by Securities and Exchange Commission Regulation G. Pursuant to the requirements of this regulation, reconciliations of this non-GAAP financial information to Accenture’s financial statements as prepared under generally accepted accounting principles (GAAP) are included in this press release. Financial results “in local currency” are calculated by restating current-period activity into U.S. dollars using the comparable prior-year period’s foreign-currency exchange rates. Accenture’s management believes providing investors with this information gives additional insights into Accenture’s results of operations. While Accenture’s management believes that the non-GAAP financial measures herein are useful in evaluating Accenture’s operations, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP. Accenture provides full-year revenue guidance on a local-currency basis and not in U.S. dollars because the impact of foreign exchange rate fluctuations could vary significantly from the company’s stated assumptions.
Forward-Looking Statements
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: Accenture’s results of operations could be adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; Accenture’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions including through the adaptation and expansion of its services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the changing technological environment could materially affect the company’s results of operations; if Accenture is unable to keep its supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; Accenture could face legal, reputational and financial risks if the company fails to protect client and/or company data from security breaches or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; changes in Accenture’s level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company’s effective tax rate, results of operations, cash flows and financial condition; Accenture’s profitability could materially suffer if the company is unable to obtain favorable pricing for its services and solutions, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; as a result of Accenture’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; if Accenture does not successfully manage and develop its relationships with key alliance partners or fails to anticipate and establish new alliances in new technologies, the company’s results of operations could be adversely affected; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; if Accenture is unable to protect its intellectual property rights or if Accenture’s services or solutions infringe upon the intellectual property rights of others or the company loses its ability to utilize the intellectual property of others, its business could be adversely affected; changes to accounting standards or in the estimates and assumptions Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; many of Accenture’s contracts include payments that link some of its fees to the attainment of performance or business targets and/or require the company to meet specific service levels, which could increase the variability of the company’s revenues and impact its margins; Accenture’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; Accenture might be unable to access additional capital on favorable terms or at all and if the company raises equity capital, it may dilute its shareholders’ ownership interest in the company; Accenture may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.
ACCENTURE PLC CONSOLIDATED CASH FLOWS STATEMENTS (In thousands of U.S. dollars) (Unaudited) |
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|
|
Three Months Ended |
|
Year Ended |
|
||||||||||||||||||||||||||||||||||
|
|
August 31,
|
|
% of Revenues |
|
August 31,
|
|
% of Revenues |
|
August 31,
|
|
% of Revenues |
|
August 31,
|
|
% of Revenues |
|
||||||||||||||||||||||
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Revenues (1) |
|
$ |
11,055,650 |
|
|
100.0 |
% |
|
$ |
10,503,987 |
|
|
100.0 |
% |
|
$ |
43,215,013 |
|
|
100.0 |
% |
|
$ |
40,992,534 |
|
|
100.0 |
% |
|||||||||||
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Cost of services (1) |
|
7,621,034 |
|
|
68.9 |
% |
|
7,266,331 |
|
|
69.2 |
% |
|
29,900,325 |
|
|
69.2 |
% |
|
28,499,170 |
|
|
69.5 |
% |
|||||||||||||||
Sales and marketing (1) |
|
1,173,240 |
|
|
10.6 |
% |
|
1,089,639 |
|
|
10.4 |
% |
|
4,447,456 |
|
|
10.3 |
% |
|
4,196,201 |
|
|
10.2 |
% |
|||||||||||||||
General and administrative costs (1) |
|
689,883 |
|
|
6.2 |
% |
|
678,333 |
|
|
6.5 |
% |
|
2,562,158 |
|
|
5.9 |
% |
|
2,398,384 |
|
|
5.9 |
% |
|||||||||||||||
Total operating expenses |
|
9,484,157 |
|
|
|
|
9,034,303 |
|
|
|
|
36,909,939 |
|
|
|
|
35,093,755 |
|
|
|
|||||||||||||||||||
OPERATING INCOME |
|
1,571,493 |
|
|
14.2 |
% |
|
1,469,684 |
|
|
14.0 |
% |
|
6,305,074 |
|
|
14.6 |
% |
|
5,898,779 |
|
|
14.4 |
% |
|||||||||||||||
Interest income |
|
27,394 |
|
|
|
|
22,755 |
|
|
|
|
87,508 |
|
|
|
|
56,337 |
|
|
|
|||||||||||||||||||
Interest expense |
|
(7,491 |
) |
|
|
|
(5,153 |
) |
|
|
|
(22,963 |
) |
|
|
|
(19,539 |
) |
|
|
|||||||||||||||||||
Other (expense) income, net (1) |
|
(30,644 |
) |
|
|
|
(30,672 |
) |
|
|
|
(117,822 |
) |
|
|
|
(127,484 |
) |
|
|
|||||||||||||||||||
INCOME BEFORE INCOME TAXES |
|
1,560,752 |
|
|
14.1 |
% |
|
1,456,614 |
|
|
13.9 |
% |
|
6,251,797 |
|
|
14.5 |
% |
|
5,808,093 |
|
|
14.2 |
% |
|||||||||||||||
Provision for income taxes |
|
415,204 |
|
|
|
|
408,243 |
|
|
|
|
1,405,556 |
|
|
|
|
1,593,499 |
|
|
|
|||||||||||||||||||
NET INCOME |
|
1,145,548 |
|
|
10.4 |
% |
|
1,048,371 |
|
|
10.0 |
% |
|
4,846,241 |
|
|
11.2 |
% |
|
4,214,594 |
|
|
10.3 |
% |
|||||||||||||||
Net income attributable to noncontrolling interests in Accenture Holdings plc and Accenture Canada Holdings Inc. |
|
(1,481 |
) |
|
|
|
(1,532 |
) |
|
|
|
(6,694 |
) |
|
|
|
(95,063 |
) |
|
|
|||||||||||||||||||
Net income attributable to noncontrolling interests – other (2) |
|
(13,640 |
) |
|
|
|
(17,315 |
) |
|
|
|
(60,435 |
) |
|
|
|
(59,624 |
) |
|
|
|||||||||||||||||||
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC |
|
$ |
1,130,427 |
|
|
10.2 |
% |
|
$ |
1,029,524 |
|
|
9.8 |
% |
|
$ |
4,779,112 |
|
|
11.1 |
% |
|
$ |
4,059,907 |
|
|
9.9 |
% |
|||||||||||
CALCULATION OF EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net income attributable to Accenture plc |
|
$ |
1,130,427 |
|
|
|
|
$ |
1,029,524 |
|
|
|
|
$ |
4,779,112 |
|
|
|
|
$ |
4,059,907 |
|
|
|
|||||||||||||||
Net income attributable to noncontrolling interests in Accenture Holdings plc and Accenture Canada Holdings Inc. (3) |
|
1,481 |
|
|
|
|
1,532 |
|
|
|
|
6,694 |
|
|
|
|
95,063 |
|
|
|
|||||||||||||||||||
Net income for diluted earnings per share calculation |
|
$ |
1,131,908 |
|
|
|
|
$ |
1,031,056 |
|
|
|
|
$ |
4,785,806 |
|
|
|
|
$ |
4,154,970 |
|
|
|
|||||||||||||||
EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
-Basic |
|
$ |
1.77 |
|
|
|
|
$ |
1.61 |
|
|
|
|
$ |
7.49 |
|
|
|
|
$ |
6.46 |
|
|
|
|||||||||||||||
-Diluted |
|
$ |
1.74 |
|
|
|
|
$ |
1.58 |
|
|
|
|
$ |
7.36 |
|
|
|
|
$ |
6.34 |
|
|
|
|||||||||||||||
WEIGHTED AVERAGE SHARES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
-Basic |
|
637,049,388 |
|
|
|
|
640,575,241 |
|
|
|
|
638,098,125 |
|
|
|
|
628,451,742 |
|
|
|
|||||||||||||||||||
-Diluted |
|
650,523,417 |
|
|
|
|
653,960,751 |
|
|
|
|
650,204,873 |
|
|
|
|
655,296,150 |
|
|
|
|||||||||||||||||||
Cash dividends per share |
|
$ |
— |
|
|
|
|
$ |
— |
|
|
|
|
$ |
2.92 |
|
|
|
|
$ |
2.66 |
|
|
|
|||||||||||||||
| _______________ | ||
(1) |
Prior to fiscal year 2019, we presented Revenues before reimbursements (net revenues), which excluded reimbursements for travel and other out of-pocket expenses. In connection with the fiscal year 2019 adoption of the Financial Accounting Standards Board Accounting Standards Update (“ASU”) No. 2014-09: “Revenue from Contracts with Customers” (Topic 606), the Net revenues and reimbursements lines were eliminated. Effective September 1, 2018, we also adopted ASU No 2017-07: “Compensation Retirement Benefits” (Topic 715) which required us to reclassify certain components of pension service costs from Operating expenses to Non-operating expenses. Prior period amounts have been revised to conform with the current period presentation. | |
(2) |
Comprised primarily of noncontrolling interest attributable to the noncontrolling shareholders of Avanade, Inc. |
|
(3) |
Diluted earnings per share assumes the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis and the redemption of all Accenture Holdings plc ordinary shares owned by holders of noncontrolling interests prior to March 13, 2018, when these were redeemed for Accenture class A ordinary shares. The income effect does not take into account “Net income attributable to noncontrolling interests — other,” since those shares are not redeemable or exchangeable for Accenture plc Class A ordinary shares. | |
ACCENTURE PLC SUMMARY OF REVENUES (In thousands of U.S. dollars) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
Percent
|
||||||||
|
|
|
|
|
|
Percent
|
|
|||||||||
|
|
Three Months Ended |
|
|
||||||||||||
|
|
August 31, 2019 |
|
August 31, 2018 (1) |
|
|
||||||||||
OPERATING GROUPS |
|
|
|
|
|
|
|
|
||||||||
Communications, Media & Technology |
|
$ |
|
2,223,931 |
|
|
$ |
|
2,143,507 |
|
|
4 |
% |
|
5 |
% |
Financial Services |
|
|
2,124,342 |
|
|
|
2,089,660 |
|
|
2 |
|
|
4 |
|
||
Health & Public Service |
|
|
1,877,423 |
|
|
|
1,755,758 |
|
|
7 |
|
|
8 |
|
||
Products |
|
|
3,092,346 |
|
|
|
2,920,481 |
|
|
6 |
|
|
8 |
|
||
Resources |
|
|
1,731,833 |
|
|
|
1,590,006 |
|
|
9 |
|
|
12 |
|
||
Other |
|
|
5,775 |
|
|
|
4,575 |
|
|
n/m |
|
|
n/m |
|
||
Total |
|
$ |
|
11,055,650 |
|
|
$ |
|
10,503,987 |
|
|
5 |
% |
|
7.2 |
% |
GEOGRAPHY |
|
|
|
|
|
|
|
|
||||||||
North America |
|
$ |
|
5,228,090 |
|
|
$ |
|
4,859,263 |
|
|
8 |
% |
|
8 |
% |
Europe |
|
|
3,568,701 |
|
|
|
3,568,977 |
|
|
— |
|
4 |
|
|||
Growth Markets |
|
|
2,258,859 |
|
|
|
2,075,747 |
|
|
9 |
|
|
12 |
|
||
Total |
|
$ |
|
11,055,650 |
|
|
$ |
|
10,503,987 |
|
|
5 |
% |
|
7.2 |
% |
TYPE OF WORK |
|
|
|
|
|
|
|
|
||||||||
Consulting |
|
$ |
|
6,186,461 |
|
|
$ |
|
5,894,869 |
|
|
5 |
% |
|
7 |
% |
Outsourcing |
|
|
4,869,189 |
|
|
|
4,609,118 |
|
|
6 |
|
|
8 |
|
||
Total |
|
$ |
|
11,055,650 |
|
|
$ |
|
10,503,987 |
|
|
5 |
% |
|
7.2 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
Percent
|
||||||||
|
|
|
|
|
|
Percent
|
|
|||||||||
|
|
Year Ended |
|
|
||||||||||||
|
|
August 31, 2019 |
|
August 31, 2018 (1) |
|
|
||||||||||
OPERATING GROUPS |
|
|
|
|
|
|
|
|
||||||||
Communications, Media & Technology |
|
$ |
|
8,757,250 |
|
|
$ |
|
8,229,842 |
|
|
6 |
% |
|
9 |
% |
Financial Services |
|
|
8,493,819 |
|
|
|
8,565,695 |
|
|
(1 |
) |
|
3 |
|
||
Health & Public Service |
|
|
7,160,787 |
|
|
|
6,877,779 |
|
|
4 |
|
|
6 |
|
||
Products |
|
|
12,004,934 |
|
|
|
11,337,863 |
|
|
6 |
|
|
9 |
|
||
Resources |
|
|
6,771,976 |
|
|
|
5,942,012 |
|
|
14 |
|
|
18 |
|
||
Other |
|
|
26,247 |
|
|
|
39,343 |
|
|
n/m |
|
|
n/m |
|
||
Total |
|
$ |
|
43,215,013 |
|
|
$ |
|
40,992,534 |
|
|
5 |
% |
|
8.5 |
% |
GEOGRAPHY |
|
|
|
|
|
|
|
|
||||||||
North America |
|
$ |
|
19,986,136 |
|
|
$ |
|
18,460,395 |
|
|
8 |
% |
|
9 |
% |
Europe |
|
|
14,680,739 |
|
|
|
14,625,769 |
|
|
— |
|
5 |
|
|||
Growth Markets |
|
|
8,548,138 |
|
|
|
7,906,370 |
|
|
8 |
|
|
14 |
|
||
Total |
|
$ |
|
43,215,013 |
|
|
$ |
|
40,992,534 |
|
|
5 |
% |
|
8.5 |
% |
TYPE OF WORK |
|
|
|
|
|
|
|
|
||||||||
Consulting |
|
$ |
|
24,177,428 |
|
|
$ |
|
22,978,798 |
|
|
5 |
% |
|
8 |
% |
Outsourcing |
|
|
19,037,585 |
|
|
|
18,013,736 |
|
|
6 |
|
|
9 |
|
||
Total |
|
$ |
|
43,215,013 |
|
|
$ |
|
40,992,534 |
|
|
5 |
% |
|
8.5 |
% |
| _______________ | ||
| n/m = not meaningful | ||
(1) |
Effective September 1, 2018, we adopted ASU No. 2014-09 and eliminated our net revenues presentation. Prior period amounts have been revised to conform with the current period presentation. In addition, we updated operating group results for fiscal 2018 to include an acquisition previously categorized within Other. | |
ACCENTURE PLC OPERATING INCOME BY OPERATING GROUP (In thousands of U.S. dollars) (Unaudited) |
||||||||||||||||||||
|
Three Months Ended |
|
|
|||||||||||||||||
|
August 31, 2019 |
|
August 31, 2018 (1) |
|
|
|||||||||||||||
|
Operating
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Increase
|
|||||||||||
Communications, Media & Technology |
$ |
|
374,402 |
|
|
17 |
% |
|
$ |
|
378,818 |
|
|
18 |
% |
|
$ |
|
(4,416 |
) |
Financial Services |
|
261,159 |
|
|
12 |
|
|
|
296,098 |
|
|
14 |
|
|
|
(34,939 |
) |
|||
Health & Public Service |
|
199,686 |
|
|
11 |
|
|
|
163,791 |
|
|
9 |
|
|
|
35,895 |
|
|||
Products |
|
447,842 |
|
|
14 |
|
|
|
416,384 |
|
|
14 |
|
|
|
31,458 |
|
|||
Resources |
|
288,404 |
|
|
17 |
|
|
|
214,593 |
|
|
13 |
|
|
|
73,811 |
|
|||
Total |
$ |
|
1,571,493 |
|
|
14.2 |
% |
|
$ |
|
1,469,684 |
|
|
14.0 |
% |
|
$ |
|
101,809 |
|
|
Year Ended |
|
|
|||||||||||||||||
|
August 31, 2019 |
|
August 31, 2018 (1) |
|
|
|||||||||||||||
|
Operating
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Increase
|
|||||||||||
Communications, Media & Technology |
$ |
|
1,554,820 |
|
|
18 |
% |
|
$ |
|
1,379,914 |
|
|
17 |
% |
|
$ |
|
174,906 |
|
Financial Services |
|
1,237,918 |
|
|
15 |
|
|
|
1,365,427 |
|
|
16 |
|
|
|
(127,509 |
) |
|||
Health & Public Service |
|
738,974 |
|
|
10 |
|
|
|
765,838 |
|
|
11 |
|
|
|
(26,864 |
) |
|||
Products |
|
1,719,881 |
|
|
14 |
|
|
|
1,663,852 |
|
|
15 |
|
|
|
56,029 |
|
|||
Resources |
|
1,053,481 |
|
|
16 |
|
|
|
723,748 |
|
|
12 |
|
|
|
329,733 |
|
|||
Total |
$ |
|
6,305,074 |
|
|
14.6 |
% |
|
$ |
|
5,898,779 |
|
|
14.4 |
% |
|
$ |
|
406,295 |
|
| _______________ | ||
(1) |
Effective September 1, 2018, we adopted ASU No. 2017-07, which required us to reclassify certain components of pension service costs from Operating expenses to Non-operating expenses. Prior period amounts have been revised to conform with the current period presentation. | |
RECONCILIATION OF NET INCOME AND DILUTED EARNINGS PER SHARE, AS REPORTED (GAAP), TO NET INCOME AND
(In thousands of U.S. dollars, except per share amounts) (Unaudited) |
|||||||||||||||
|
Year Ended |
||||||||||||||
|
August 31, 2019 |
|
August 31, 2018 |
||||||||||||
|
As Reported
|
|
As Reported
|
|
Tax Law Changes
|
|
Adjusted
|
||||||||
Income before income taxes |
$ |
6,251,797 |
|
|
$ |
5,808,093 |
|
|
$ |
— |
|
|
$ |
5,808,093 |
|
Provision for income taxes |
1,405,556 |
|
|
1,593,499 |
|
|
(258,498 |
) |
|
1,335,001 |
|
||||
Net income |
$ |
4,846,241 |
|
|
$ |
4,214,594 |
|
|
$ |
258,498 |
|
|
$ |
4,473,092 |
|
|
|
|
|
|
|
|
|
||||||||
Effective tax rate |
22.5 |
% |
|
27.4 |
% |
|
|
|
23.0 |
% |
|||||
Diluted earnings per share |
$ |
7.36 |
|
|
$ |
6.34 |
|
|
$ |
0.40 |
|
|
$ |
6.74 |
|
| _______________ | ||
(1) |
Represents the tax expense associated with tax law changes. | |
ACCENTURE PLC CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars) |
||||||||
|
|
August 31, 2019 |
|
August 31, 2018 |
||||
|
|
(Unaudited) |
|
|
||||
ASSETS |
|
|
|
|
||||
CURRENT ASSETS: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
6,126,853 |
|
|
$ |
5,061,360 |
|
Short-term investments |
|
3,313 |
|
|
3,192 |
|
||
Receivables and contract assets (1) |
|
8,095,071 |
|
|
7,496,368 |
|
||
Other current assets |
|
1,225,364 |
|
|
1,024,639 |
|
||
Total current assets |
|
15,450,601 |
|
|
13,585,559 |
|
||
NON-CURRENT ASSETS: |
|
|
|
|
||||
Contract assets (1) |
|
71,002 |
|
|
23,036 |
|
||
Investments |
|
240,313 |
|
|
215,532 |
|
||
Property and equipment, net |
|
1,391,166 |
|
|
1,264,020 |
|
||
Goodwill |
|
6,205,550 |
|
|
5,383,012 |
|
||
Other non-current assets |
|
6,431,248 |
|
|
3,977,924 |
|
||
Total non-current assets |
|
14,339,279 |
|
|
10,863,524 |
|
||
TOTAL ASSETS |
|
$ |
29,789,880 |
|
|
$ |
24,449,083 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
CURRENT LIABILITIES: |
|
|
|
|
||||
Current portion of long-term debt and bank borrowings |
|
$ |
6,411 |
|
|
$ |
5,337 |
|
Accounts payable |
|
1,646,641 |
|
|
1,348,802 |
|
||
Deferred revenues |
|
3,188,835 |
|
|
2,837,682 |
|
||
Accrued payroll and related benefits |
|
4,890,542 |
|
|
4,569,172 |
|
||
Other accrued liabilities |
|
1,329,467 |
|
|
1,390,758 |
|
||
Total current liabilities |
|
11,061,896 |
|
|
10,151,751 |
|
||
NON-CURRENT LIABILITIES: |
|
|
|
|
||||
Long-term debt |
|
16,247 |
|
|
19,676 |
|
||
Other non-current liabilities |
|
3,884,046 |
|
|
3,553,068 |
|
||
Total non-current liabilities |
|
3,900,293 |
|
|
3,572,744 |
|
||
TOTAL ACCENTURE PLC SHAREHOLDERS’ EQUITY |
|
14,408,739 |
|
|
10,364,753 |
|
||
NONCONTROLLING INTERESTS |
|
418,952 |
|
|
359,835 |
|
||
TOTAL SHAREHOLDERS’ EQUITY |
|
14,827,691 |
|
|
10,724,588 |
|
||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
$ |
29,789,880 |
|
|
$ |
24,449,083 |
|
| _____________ | ||
(1) |
Effective September 1, 2018 we adopted ASU No. 2014-09, which resulted in the reclassification of Unbilled services into Receivables and contract assets and Deferred revenues. Prior period amounts have been revised to conform with the current period presentation. | |
ACCENTURE PLC CONSOLIDATED CASH FLOWS STATEMENTS (In thousands of U.S. dollars) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
August 31,
|
|
August 31,
|
|
August 31,
|
|
August 31,
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
1,145,548 |
|
|
$ |
1,048,371 |
|
|
$ |
4,846,241 |
|
|
$ |
4,214,594 |
|
Depreciation, amortization and asset impairments |
|
240,168 |
|
|
235,090 |
|
|
892,760 |
|
|
926,776 |
|
||||
Share-based compensation expense |
|
236,301 |
|
|
225,082 |
|
|
1,093,253 |
|
|
976,908 |
|
||||
Change in assets and liabilities/other, net |
|
494,236 |
|
|
600,715 |
|
|
(205,301 |
) |
|
(91,587 |
) |
||||
Net cash provided by (used in) operating activities |
|
2,116,253 |
|
|
2,109,258 |
|
|
6,626,953 |
|
|
6,026,691 |
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
||||||||
Purchases of property and equipment |
|
(241,260 |
) |
|
(179,383 |
) |
|
(599,009 |
) |
|
(619,187 |
) |
||||
Purchases of businesses and investments, net of cash acquired |
|
(137,156 |
) |
|
(201,144 |
) |
|
(1,193,071 |
) |
|
(657,546 |
) |
||||
Proceeds from sale of businesses and investments, net of cash transferred |
|
36 |
|
|
5,872 |
|
|
27,951 |
|
|
20,197 |
|
||||
Other investing, net |
|
2,512 |
|
|
(313 |
) |
|
8,553 |
|
|
6,932 |
|
||||
Net cash provided by (used in) investing activities |
|
(375,868 |
) |
|
(374,968 |
) |
|
(1,755,576 |
) |
|
(1,249,604 |
) |
||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
||||||||
Proceeds from issuance of ordinary shares |
|
93,992 |
|
|
86,316 |
|
|
848,445 |
|
|
753,146 |
|
||||
Purchases of shares |
|
(406,527 |
) |
|
(551,824 |
) |
|
(2,691,114 |
) |
|
(2,639,094 |
) |
||||
Cash dividends paid |
|
— |
|
|
— |
|
|
(1,864,353 |
) |
|
(1,708,724 |
) |
||||
Other financing, net |
|
(38,483 |
) |
|
(66,108 |
) |
|
(60,149 |
) |
|
(114,356 |
) |
||||
Net cash provided by (used in) financing activities |
|
(351,018 |
) |
|
(531,616 |
) |
|
(3,767,171 |
) |
|
(3,709,028 |
) |
||||
Effect of exchange rate changes on cash and cash equivalents |
|
(31,672 |
) |
|
(70,159 |
) |
|
(38,713 |
) |
|
(133,559 |
) |
||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
1,357,695 |
|
|
1,132,515 |
|
|
1,065,493 |
|
|
934,500 |
|
||||
CASH AND CASH EQUIVALENTS, beginning of period |
|
4,769,158 |
|
|
3,928,845 |
|
|
5,061,360 |
|
|
4,126,860 |
|
||||
CASH AND CASH EQUIVALENTS, end of period |
|
$ |
6,126,853 |
|
|
$ |
5,061,360 |
|
|
$ |
6,126,853 |
|
|
$ |
5,061,360 |
|