Accenture Reports Double-Digit Increases in First-Quarter Revenues and EPS; Revenues Increase 12% to $4.17 Billion; EPS and Operating Income Up 20% on Options-Adjusted Basis.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Accenture (Accenture, Chicago, IL, www.accenture.com) The world's largest management and technology consulting firm, which was spun off of Arthur Andersen & Co. in 1989 as a separate entity known as Andersen Consulting. (NYSE NYSE See: New York Stock Exchange : ACN ACN Accenture (stock symbol) ACN Accenture ACN Australian Company Number ACN Automatic Collision Notification (US DOT) ACN Acetonitrile ACN Anglican Communion Network ) today reported that net revenues for the first quarter of fiscal 2006, ended Nov. 30, 2005, were $4.17 billion, a 12 percent increase over the same period last year. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.36, an increase of 20 percent on an options-adjusted basis. In addition to achieving double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. increases in both its top and bottom lines, the company maintained its strong balance sheet and cash flow. Due to discounted share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. and redemptions in the first quarter, Accenture revised upward its expectations for EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. for the full fiscal year to the range of $1.52 to $1.57. William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack D. Green, Accenture's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "We turned in another strong performance in the first quarter, achieving our highest quarterly net revenues ever, with growth in both U.S. dollars and local currency across all five operating groups and all three geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. regions. Given that we recorded $5.54 billion in new bookings, our highest in seven quarters, we feel confident that we are on the right trajectory Trajectory The curve described by a body moving through space, as of a meteor through the atmosphere, a planet around the Sun, a projectile fired from a gun, or a rocket in flight. to achieve our revenue goal for the year. "We grew revenues while keeping our costs in line, resulting in a 90-basis-point expansion of our operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: on an options-adjusted basis. We paid our first cash dividend and continued to return cash to shareholders through share repurchases. Our balance sheet continues to be strong, and we generated $290 million in free cash flow. We continue to build momentum and are well-positioned to meet our business and financial objectives for the full fiscal year." Financial Highlights As of Sept. 1, 2005, Accenture began expensing stock options and employee stock purchase plans in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R. Therefore, in addition to providing year-over-year GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). comparisons, the company is presenting results for the first quarter of fiscal 2005 on an options-adjusted basis to provide meaningful comparisons on relevant metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. .
-- Revenues before reimbursements ("net revenues") were $4.17
billion, compared with $3.73 billion for the first quarter of
fiscal 2005, an increase of 12 percent in both U.S. dollars
and local currency. Net revenues were the highest for any
quarter in the company's history, with new records for both
consulting and outsourcing:
-- Consulting net revenues were $2.58 billion, or 62 percent
of net revenues, an increase of 8 percent in U.S. dollars
and 9 percent in local currency.
-- Outsourcing net revenues were $1.59 billion, or 38 percent
of net revenues, an increase of 18 percent in both U.S.
dollars and local currency.
-- Diluted EPS were $0.36, compared with $0.30 on an
options-adjusted basis for the first quarter of fiscal 2005,
an increase of 20 percent.
-- Operating income increased 20 percent to $513 million, or 12.3
percent of net revenues, compared with $427 million, or 11.4
percent of net revenues, on an options-adjusted basis for the
first quarter of fiscal 2005.
-- New bookings totaled $5.54 billion, representing the highest
quarterly bookings in seven quarters. Consulting accounted for
$2.78 billion, or 50 percent, of new bookings and outsourcing
accounted for $2.76 billion, or 50 percent, of new bookings.
Financial Review GAAP diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS for the first quarter of fiscal 2006 were $0.36, compared with GAAP diluted EPS of $0.32 for the first quarter of fiscal 2005. EPS of $0.36 for the first quarter of fiscal 2006 represents a 20 percent year-over-year increase compared with options-adjusted EPS of $0.30 for the first quarter of fiscal 2005. The adjusted EPS for the first quarter of fiscal 2005 reflects an incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. options and employee stock purchase plan expense of $32 million, or $0.02 in EPS. GAAP operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the first quarter of fiscal 2006 was $513 million, or 12.3 percent of net revenues, an increase of 12 percent over GAAP operating income of $458 million, or 12.3 percent of net revenues, in the first quarter of fiscal 2005. On an options-adjusted basis, operating income for the first quarter of fiscal 2005 was $427 million, or 11.4 percent of net revenues. GAAP operating margin of 12.3 percent for the first quarter of fiscal 2006 represents a 90 basis-point increase over the options-adjusted operating margin of 11.4 percent for the first quarter of fiscal 2005. Gross margin (gross profit as a percentage of net revenues) was 31.7 percent, compared with 32.6 percent for the first quarter of fiscal 2005 on a GAAP basis and 31.8 percent for the first quarter of 2005 on an options-adjusted basis. Selling, general and administrative ("SG&A") costs were $802 million, or 19.2 percent of net revenues, compared with $750 million, or 20.1 percent of net revenues, for the first quarter last year. As a percentage of net revenues, SG&A costs for the first quarter of fiscal 2006 decreased 100 basis points from options-adjusted SG&A costs of $752 million, or 20.2 percent of net revenues, for the same period last year. The company's effective tax rate for the first quarter of fiscal 2006 was 37.4 percent. Income before minority interest for the first quarter was $328 million, compared with $320 million for the same period in fiscal 2005 on a GAAP basis and $297 million on an options-adjusted basis. For the three months ended Nov. 30, 2005, operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. was $368 million, and property and equipment additions were $78 million. Free cash flow, defined as operating cash flow net of property and equipment additions, was $290 million. Accenture's total cash balance at Nov. 30, 2005 was $1.69 billion, compared with $2.27 billion at Nov. 30, 2004 and $2.48 billion at Aug. 31, 2005. The decrease in the company's cash balance since Aug. 31 is due principally to its share repurchases and payment of its first-ever cash dividend in the first quarter. Cash combined with $462 million of fixed-income securities Fixed-income securities Investments that have specific interest rates, such as bonds. classified as investments on the company's balance sheet was $2.15 billion at Nov. 30, 2005, compared with $3.21 billion at Nov. 30, 2004 and $3.18 billion at Aug. 31, 2005. Total debt at Nov. 30, 2005 was $54 million. Net Revenues by Operating Group All five operating groups achieved revenue growth in both U.S. dollars and local currency. Net revenues were as follows: --Communications & High Tech: $1.05 billion, compared with $973 million for the first quarter of fiscal 2005, an increase of 8 percent in both U.S. dollars and local currency. --Financial Services: $855 million, compared with $807 million for the year-ago period, an increase of 6 percent in U.S. dollars and 7 percent in local currency. --Government: $598 million, compared with $524 million for the year-ago period, an increase of 14 percent in U.S. dollars and 15 percent in local currency. --Products: $1.02 billion, compared with $862 million for the year-ago period, an increase of 18 percent in U.S. dollars and 19 percent in local currency. This was the first time that net revenues in Products exceeded $1 billion in a quarter. --Resources: $650 million, compared with $564 million for the year-ago period, an increase of 15 percent in U.S. dollars and 14 percent in local currency. Net Revenues by Geographic Region Accenture grew net revenues in all three geographic regions in both U.S. dollars and local currency. Net revenues were as follows: --Americas: $1.86 billion, compared with $1.55 billion for the first quarter of fiscal 2005, an increase of 19 percent in U.S. dollars and 18 percent in local currency. --Europe, Middle East and Africa (EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. ): $2.01 billion, compared with $1.91 billion for the year-ago period, an increase of 5 percent in U.S. dollars and 7 percent in local currency. --Asia Pacific: $303 million, compared with $267 million for the year-ago period, an increase of 14 percent in U.S. dollars and 13 in local currency. Share Repurchase Activity During the first quarter of fiscal 2006, Accenture repurchased or redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. a total of 52.2 million shares for a total of $1.15 billion, which included $1.00 billion for 46.4 million shares repurchased or redeemed at a discount. At Nov. 30, 2005, Accenture had $1.3 billion of share repurchase authority remaining. Business Outlook Second Quarter Fiscal 2006 For the second quarter of fiscal 2006, ending Feb. 28, 2006, Accenture expects net revenues to be in the range of $4.00 billion to $4.15 billion and GAAP diluted EPS to be in the range of $0.33 to $0.35. Full Fiscal Year 2006 For the full fiscal year 2006, Accenture continues to expect net revenue growth of 9 percent to 12 percent in local currency. Adjusting for an aggregate $0.07 benefit from the discounted repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. or redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of 46.4 million shares in the first quarter, the company now expects GAAP diluted EPS for the full fiscal year to be in the range of $1.52 to $1.57. This represents 19 percent to 23 percent EPS growth over the comparable 2005 options-adjusted baseline The horizontal line to which the bottoms of lowercase characters (without descenders) are aligned. See typeface. baseline - released version of $1.28. Accenture continues to expect operating cash flow for the full fiscal year to be in the range of $2.00 billion to $2.20 billion; property and equipment additions to be $450 million; and free cash flow to be in the range of $1.55 billion to $1.75 billion. The company also continues to expect the annual effective tax rate to be in the range of 35 percent to 38 percent. Accenture continues to target new bookings in the range of $19 billion to $21 billion for the full fiscal year. Conference Call and Webcast Details Accenture will host a conference call at 4:30 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. today to discuss its first-quarter fiscal 2006 financial results. To participate, please dial +1 (800) 230-1092 (+1 (612) 288-0329 outside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of ) approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 15 minutes before the scheduled start of the call. The conference call will also be accessible live on the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Accenture website at www.accenture.com. A replay of the conference call will be available online at www.accenture.com and via telephone by dialing +1 (800) 475-6701 (+1 (320) 365-3844 outside the United States, Puerto Rico and Canada) and entering access code 807195 from 9:45 p.m. EST Thursday Thursday: see week. , Jan. 5 through 11:59 p.m. EST Thursday, Jan. 19. About Accenture Accenture is a global management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects , technology services and outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize mo·bi·lize v. 1. To make mobile or capable of movement. 2. To restore the power of motion to a joint. 3. To release into the body, as glycogen from the liver. the right people, skills, and technologies to help clients improve their performance. With more than 126,000 people in 48 countries, the company generated net revenues of US$15.55 billion for the fiscal year ended Aug. 31, 2005. Its home page is www.accenture.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This news release contains forward-looking statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc our operations and results of operations, the accuracy of which is necessarily subject to risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. include general economic conditions and the factors discussed under the "Risk Factors" heading in the Business section of our most recent annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission. 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. 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 The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP) are included in this press release. Accenture discloses free cash flow (defined as operating cash flow net of property and equipment additions) and certain additional information regarding operating income and earnings per share for fiscal 2005. Accenture's management believes providing investors with this information gives additional insights into Accenture's results of operations. While Accenture's management believes that these non-GAAP financial measures 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 LTD
CONSOLIDATED INCOME STATEMENTS
For the Three Months Ended November 30, 2005 and 2004
(In thousands of U.S. dollars, except share and per share data)
(Unaudited)
2005 2004
--------------------- ---------------------
% of Net % of Net
Revenues Revenues
-------- --------
REVENUES:
Revenues before
reimbursements (Net
revenues) $ 4,169,475 100% $ 3,730,355 100%
Reimbursements 373,541 341,017
------------- -------------
Revenues 4,543,016 4,071,372
OPERATING EXPENSES:
Cost of services:
Cost of services
before reimbursable
expenses 2,849,167 68.3% 2,515,439 67.4%
Reimbursable expenses 373,541 341,017
------------- -------------
Cost of services 3,222,708 2,856,456
Sales and marketing 408,602 9.8% 358,943 9.6%
General and
administrative costs 393,766 9.4% 390,815 10.5%
Reorganization costs 5,384 7,008
------------- -------------
Total operating
expenses 4,030,460 3,613,222
------------- -------------
OPERATING INCOME 512,556 12.3% 458,150 12.3%
Gain on investments, net 1,438 14,540
Interest income 30,353 20,121
Interest expense (4,685) (6,316)
Other expense (15,947) (2,327)
------------- -------------
INCOME BEFORE INCOME TAXES 523,715 12.6% 484,168 13.0%
Provision for income taxes 195,869 164,617
------------- -------------
INCOME BEFORE MINORITY
INTEREST 327,846 7.9% 319,551 8.6%
Minority interest in
Accenture SCA and
Accenture Canada
Holdings Inc (110,136) (121,681)
Minority interest
- other (1) (2,770) (1,597)
------------- -------------
NET INCOME $ 214,940 5.2% $ 196,273 5.3%
============= =============
CALCULATION OF EARNINGS
PER SHARE:
Net income $214,940 $ 196,273
Minority interest in
Accenture SCA and
Accenture Canada Holdings
Inc. (2) 110,136 121,681
------------- -------------
Net income for diluted
earnings per share
calculation $ 325,076 $ 317,954
EARNINGS PER SHARE:
- Basic $ 0.37 $ 0.33
============= =============
- Diluted 0.36 $ 0.32
============= =============
WEIGHTED AVERAGE SHARES:
- Basic 586,267,569 590,029,649
- Diluted 913,640,289 980,623,940
Cash Dividends Per Share $ 0.30 $ --
(1) Minority interest - other is comprised primarily of minority
interest attributable to the minority shareholders of Avanade,
Inc.
(2) Diluted earnings per share assumes the redemption and exchange of
all Accenture SCA Class I common shares and Accenture Canada
Holdings Inc. exchangeable shares, respectively, for Accenture Ltd
Class A common shares, on a one-for-one basis.
ACCENTURE LTD
RECONCILIATION OF CONSOLIDATED INCOME STATEMENT, AS REPORTED (GAAP),
TO CONSOLIDATED INCOME STATEMENT ON AN OPTIONS-ADJUSTED BASIS
For the Three Months Ended November 30, 2004
(In thousands of U.S. dollars, except share and per share data)
(Unaudited)
As Reported Options- % of Net
(GAAP) Adjustments(3) Adjusted Revenues
------------ -------------- ------------ --------
REVENUES:
Revenues before
reimbursements
(Net revenues) $ 3,730,355 - $ 3,730,355 100%
Reimbursements 341,017 - 341,017
------------ -------------- ------------
Revenues 4,071,372 - 4,071,372
OPERATING EXPENSES:
Cost of services:
Cost of services
before
reimbursable
expenses 2,515,439 29,483 2,544,922 68.2%
Reimbursable
expenses 341,017 - 341,017
------------ -------------- ------------
Cost of services 2,856,456 29,483 2,885,939
Sales and marketing 358,943 788 359,731 9.7%
General and
administrative
costs 390,815 1,261 392,076 10.5%
Reorganization costs 7,008 - 7,008
------------ -------------- ------------
Total operating
expenses 3,613,222 31,532 3,644,754
------------ -------------- ------------
OPERATING INCOME 458,150 (31,532) 426,618 11.4%
Gain on investments,
net 14,540 - 14,540
Interest income 20,121 - 20,121
Interest expense (6,316) - (6,316)
Other expense (2,327) - (2,327)
------------ -------------- ------------
INCOME BEFORE INCOME
TAXES 484,168 (31,532) 452,636 12.1%
Provision for income
taxes 164,617 (9,460) 155,157
------------ -------------- ------------
INCOME BEFORE
MINORITY INTEREST 319,551 (22,072) 297,479 8.0%
Minority interest in
Accenture SCA and
Accenture Canada
Holdings Inc (121,681) 8,447 (113,234)
Minority interest -
other (1) (1,597) - (1,597)
------------ -------------- ------------
NET INCOME $ 196,273 $ (13,625) $ 182,648 4.9%
============ ============== ============
CALCULATION OF
EARNINGS PER SHARE:
Net income $ 196,273 $ 182,648
Minority interest in
Accenture SCA and
Accenture Canada
Holdings Inc. (2) 121,681 113,234
------------ ------------
Net income for
diluted earnings
per share
calculation $ 317,954 $ 295,882
EARNINGS PER SHARE:
- Basic $ 0.33 $ 0.31
============ ============
- Diluted $ 0.32 $ 0.30
============ ============
WEIGHTED AVERAGE
SHARES:
- Basic 590,029,649 590,029,649
- Diluted 980,623,940 980,623,940
(1) Minority interest - other is comprised primarily of minority
interest attributable to the minority shareholders of Avanade,
Inc.
(2) Diluted earnings per share assumes the redemption and exchange of
all Accenture SCA Class I common shares and Accenture Canada
Holdings Inc. exchangeable shares, respectively, for Accenture Ltd
Class A common shares, on a one-for-one basis.
(3) Adjustments represent the estimated amounts that Accenture would
have incurred if it had expensed employee stock options and
employee share purchase plans for the three months ended November
30, 2004.
ACCENTURE LTD
SUMMARY OF REVENUES
For the Three Months Ended November 30, 2005 and 2004
(In thousands of U.S. dollars)
(Unaudited)
Percent
Percent of Total
Percent Increase Fiscal
Increase Local 2006 Net
2005 2004 US $ Currency Revenues
---------------------- ------- -------- --------
OPERATING GROUPS
Communications &
High Tech $1,047,541 $ 972,931 8% 8% 25%
Financial
Services 854,872 806,693 6% 7% 21%
Government 598,119 523,803 14% 15% 14%
Products 1,017,035 862,198 18% 19% 24%
Resources 650,286 564,392 15% 14% 16%
Other 1,622 338 n/m n/m --
----------- ----------- --------
TOTAL Net Revenues 4,169,475 3,730,355 12% 12% 100%
========
Reimbursements 373,541 341,017 10%
----------- -----------
TOTAL REVENUES $4,543,016 $4,071,372 12%
=========== ===========
GEOGRAPHY
Americas $1,855,490 $1,554,334 19% 18% 45%
EMEA 2,010,669 1,909,113 5% 7% 48%
Asia Pacific 303,316 266,908 14% 13% 7%
----------- ----------- --------
TOTAL Net
Revenues 4,169,475 3,730,355 12% 12% 100%
========
Reimbursements 373,541 341,017 10%
----------- -----------
TOTAL REVENUES $4,543,016 $4,071,372 12%
=========== ===========
TYPE OF WORK
Consulting $2,576,639 $2,384,932 8% 9% 62%
Outsourcing 1,592,836 1,345,423 18% 18% 38%
----------- ----------- --------
TOTAL Net
Revenues 4,169,475 3,730,355 12% 12% 100%
========
Reimbursements 373,541 341,017 10%
----------- -----------
TOTAL REVENUES $4,543,016 $4,071,372 12%
=========== ===========
n/m = not meaningful
ACCENTURE LTD
OPERATING INCOME BY OPERATING GROUP (OG)
For the Three Months Ended November 30, 2005 and 2004
(In thousands of U.S. dollars)
(Unaudited)
Operating Income as Reported
-------------------------------------
2005 2004
------------------ ------------------
Percent Percent Increase
of OG of OG (Decrease)
Operating Net Operating Net ---------------
Operating Groups Income Revenues Income Revenues US$ Percent
------------------ ------------------ ---------------
Communications &
High Tech $172,306 16% $149,329 15% $22,977 15%
Financial
Services 81,603 10% 95,426 12% (13,823) (14%)
Government 61,622 10% 46,267 9% 15,355 33%
Products 117,733 12% 85,868 10% 31,865 37%
Resources 79,292 12% 81,260 14% (1,968) (2%)
--------- --------- --------
Total $512,556 12.3% $458,150 12.3% $54,406 11.9%
========= ========= ========
Operating Income on an
Options-Adjusted Basis (1)
--------------------------------------
2005 2004
------------------ -------------------
Percent Options- Percent Increase
of OG Adjusted of OG (Decrease)
Operating Net Operating Net ---------------
Operating Groups Income Revenues Income Revenues US$ Percent
------------------ ------------------- ---------------
Communications &
High Tech $172,306 16% $141,868 15% $30,438 21%
Financial
Services 81,603 10% 88,085 11% (6,482) (7%)
Government 61,622 10% 41,832 8% 19,790 47%
Products 117,733 12% 78,488 9% 39,245 50%
Resources 79,292 12% 76,345 14% 2,947 4%
--------- ---------- --------
Total $512,556 12.3% $426,618 11.4% $85,938 20.1%
========= ========== ========
(1) Accenture estimates that if it had expensed employee stock options
and employee share purchase plans for the three months ended
November 30, 2004, the related pre-tax expense would have been
$31,532, allocated to the operating groups in the following
amounts: $7,461 to Communications & High Tech; $7,341 to Financial
Services; $4,435 to Government; $7,380 to Products; and $4,915 to
Resources. Operating income for the three months ended November
30, 2005 already includes the expense related to employee stock
options and employee share purchase plans.
ACCENTURE LTD
CONSOLIDATED BALANCE SHEETS
November 30, 2005 and August 31, 2005
(In thousands of U.S. dollars)
November 30, August 31,
2005 2005
------------- -----------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $1,685,997 $2,483,990
Short-term investments 280,647 463,460
Receivables from clients, net 1,878,071 1,752,937
Unbilled services 1,408,368 1,353,676
Other current assets 594,776 631,204
------------- -----------
Total current assets 5,847,859 6,685,267
------------- -----------
NON-CURRENT ASSETS:
Unbilled services 484,922 472,430
Investments 209,417 262,873
Property and equipment, net 694,452 693,710
Other non-current assets 886,530 843,072
------------- -----------
Total non-current assets 2,275,321 2,272,085
------------- -----------
TOTAL ASSETS $8,123,180 $8,957,352
============= ===========
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term debt $ 22,514 $ 31,072
Accounts payable 774,376 807,317
Deferred revenues 1,295,793 1,284,303
Accrued payroll and related benefits 1,315,420 1,430,998
Other accrued liabilities 1,513,458 1,308,699
------------- -----------
Total current liabilities 4,921,561 4,862,389
------------- -----------
NON-CURRENT LIABILITIES:
Long-term debt 31,202 44,116
Other non-current liabilities 1,391,993 1,372,974
------------- -----------
Total non-current liabilities 1,423,195 1,417,090
------------- -----------
MINORITY INTEREST 612,959 980,959
------------- -----------
EQUITY:
Total Shareholders' equity 1,165,465 1,696,914
------------- -----------
TOTAL LIABILITIES AND EQUITY $8,123,180 $8,957,352
============= ===========
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