Accenture Reports Financial Results for First-Quarter Fiscal 2005; Revenues Increase 14%; EPS of $0.32 is Ahead of Company's Expectations.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 net revenues of $3.73 billion and earnings per share of $0.32 for the first quarter of fiscal 2005, ended Nov. 30, 2004. Net revenues grew 14 percent overall, with 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. increasing 15 percent and consulting increasing 14 percent. The company achieved net revenue growth across all three of its 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, and net revenue growth in U.S. dollars across all five of its operating groups, with exceptional top-line contributions from its Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and Products operating groups. In addition, the company revised its expectations upward for both net revenues and earnings per share for the full fiscal year. Financial Highlights --Revenues before reimbursements ("net revenues") were $3.73 billion, compared with $3.26 billion for the first quarter of fiscal 2004, an increase of 14 percent in U.S. dollars and 9 percent in local currency. --Diluted earnings per share were $0.32, compared with $0.33 for the first quarter last year, and ahead of the company's expected range of $0.28 to $0.31. Year-over-year 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 (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. growth was 22 percent excluding a $0.06 benefit from an $86 million reduction in reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. liabilities in the first quarter last fiscal year and a $7 million reorganization expense in the first quarter this fiscal year. --Operating income was $458 million, or 12.3 percent of net revenues, compared with $507 million, or 15.5 percent of net revenues, for the first quarter last year. Excluding reorganization costs and benefits described above, 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 2005 was $465 million, or 12.5 percent of net revenues, compared with $421 million, or 12.9 percent of net revenues, for the first quarter of fiscal 2004. 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're we're Contraction of we are. we're we are pleased with our strong top- top- pref. Variant of topo-. and bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. performance in the first quarter, which reflects our ability to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution our strategy of helping clients 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. Our net revenues were the highest of any quarter in Accenture's history, with growth in all three geographic regions and U.S. dollar growth in all five operating groups. We are particularly pleased with the growth in our consulting revenues, the strongest we've we've Contraction of we have. we've have seen since we became a public company. "Looking ahead, we are encouraged by the high level of activity in the marketplace, the momentum we are seeing in demand for our services, particularly in consulting, and our strong pipeline. At the same time, we have several operational areas that we will improve upon in the second quarter and beyond. We are confident that we will achieve our financial objectives for the full fiscal year." Financial Review Gross margin (gross profit as a percentage of net revenues) was 33.0 percent, compared with 34.1 percent for the first quarter of fiscal 2004 and 32.4 percent for the fourth quarter of fiscal 2004. The year-over-year decline was primarily due to higher labor costs in the quarter, reflecting an increase in compensation effective September September: see month. 1 and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. staffing inefficiencies due to growth in demand for the company's services and increased resource utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be . Selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. were $765 million, or 20.5 percent of net revenues, compared with $690 million, or 21.2 percent of net revenues, for the first quarter last year. The improvement was due to continued cost-management efforts and the ability to grow revenues without a corresponding increase in SG&A costs. Accenture accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. variable compensation expense of $47 million in the first quarter of fiscal 2005. In the first quarter last year, the company did not accrue To increase; to augment; to come to by way of increase; to be added as an increase, profit, or damage. Acquired; falling due; made or executed; matured; occurred; received; vested; was created; was incurred. variable compensation and reversed $4 million of previously accrued variable compensation. The company's effective tax rate for the first quarter of fiscal 2005 was 34.0 percent, compared with 34.8 percent for the same period last year. Income before minority interest was $320 million, compared with $335 million for the same period last year. Income before minority interest in the first quarter last fiscal year was $271 million excluding the $64 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. benefit from the $86 million reduction in reorganization liabilities. Accenture's total cash balance at Nov. 30, 2004 was $2.27 billion, compared with $2.33 billion for the year-ago period and $2.55 billion at Aug. 31, 2004. Cash combined with $939 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 $3.21 billion at Nov. 30, 2004, compared with $2.33 billion for same period last year and $3.15 billion at Aug. 31, 2004. Total debt at Nov. 30, 2004 was $40 million. For the first quarter of fiscal 2005, free cash flow, defined as 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. net of property and equipment additions, was negative $116 million, operating cash flow was negative $61 million, and property and equipment additions were $55 million. Free cash flow was reduced by the planned payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. of $216 million of accrued variable compensation and an increase in client balances. The increase in client balances was due to growth in revenues, increases in client financing, the amortization of prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. from clients, and some temporary delays in billings Billings, city (1990 pop. 81,151), seat of Yellowstone co., S Mont., on the Yellowstone River, in a valley surrounded by seven mountain ranges; inc. as a city 1885. . Consulting and Outsourcing Net Revenues --Consulting net revenues were $2.385 billion, or 64 percent of net revenues, an increase of 14 percent in U.S. dollars and 8 percent in local currency over the first quarter of fiscal year 2004. --Outsourcing accounted for $1.345 billion, or 36 percent of net revenues, an increase of 15 percent in U.S. dollars and 10 percent in local currency over the year-ago period. Net Revenues by Operating Group Net revenues for Accenture's five operating groups were as follows: --Communications & High Tech: $973 million, compared with $879 million for first quarter of fiscal 2004, an increase of 11 percent in U.S. dollars and 6 percent in local currency. Growth was primarily driven by an increase in consulting revenues across all industry groups. --Financial Services: $807 million, compared with $646 million for the same period last year, an increase of 25 percent in U.S. dollars and 17 percent in local currency. Growth was driven mainly by the strength of the company's business in the United Kingdom, as well as by strong growth in the Capital Markets and Insurance industry groups globally. --Government: $524 million, compared with $478 million for the year-ago period, an increase of 10 percent in U.S. dollars and 5 percent in local currency, driven primarily by higher consulting revenues from clients in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , particularly in the United Kingdom.
--Resources: $564 million, compared with $555 million for the same period last year, an increase of 2 percent in U.S. dollars and a decrease of 4 percent in local currency. Revenues increased in the 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. region and in the Energy and Metals & Mining industry groups but declined in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and in the Chemicals and Utilities industry groups. --Products: $862 million, compared with $701 million for the year-ago period, an increase of 23 percent in U.S. dollars and 17 percent in local currency, driven by strong growth in consulting and outsourcing revenues, particularly in the Retail & Consumer industry group in North America. Net Revenues by Geographic Region Net revenues by geographic region were as follows: --Europe, Middle East and Africa (EMEA): $1.92 billion, compared with $1.55 billion for the first quarter of fiscal 2004, an increase of 24 percent in U.S. dollars and 12 percent in local currency. --Americas: $1.54 billion, compared with $1.49 billion for the year-ago period, an increase of 3 percent in both U.S. dollars and local currency. --Asia Pacific: $270 million, compared with $220 million for the year-ago period, an increase of 23 percent in U.S. dollars and 19 percent in local currency. New Bookings New bookings for the first quarter totaled $4.03 billion, with consulting accounting for $1.96 billion and outsourcing accounting for $2.07 billion. Share Repurchase 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. Activity During the first quarter of fiscal 2005, Accenture repurchased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1.6 million of its Class A common shares with a total value of $39 million. At Nov. 30, 2004, Accenture had $3.25 billion of share repurchase authority remaining, of which approximately $1 billion remained for use in connection with the Company's open-market share purchase program. The balance was available for redemptions and purchases from Accenture's partners, former partners, their permitted transferees and employees. Accenture expects to purchase or redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. $1.25 billion to $1.75 billion of its shares during the balance of the fiscal year, through both open-market share purchases and its ongoing Share Management Plan transactions. Business Outlook Second Quarter Fiscal 2005 For the second quarter of fiscal 2005, Accenture expects net revenues in the range of $3.60 billion to $3.75 billion and GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). 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 in the range of $0.33 to $0.35. GAAP diluted earnings per share for the second quarter will include a benefit of $0.03 per share from a $41 million reduction in reorganization liabilities that were established in connection with Accenture's transition to corporate structure in 2001. This reduction was recognized in December December: see month. 2004. Full Fiscal Year 2005 For the full fiscal year 2005, Accenture now expects net revenue growth in the range of 13 percent to 16 percent in U.S. dollars and continues to expect net revenue growth in the range of 9 percent to 12 percent in local currency. Accenture has revised its guidance for GAAP diluted earnings per share upward to the range of $1.41 to $1.46. Diluted earnings per share for the full fiscal year will include a benefit of $0.04 per share from the $41 million reduction in reorganization liabilities that was recognized in December 2004. Diluted earnings per share for the full fiscal year will also include a $0.02 benefit in the second half of the fiscal year associated with Accenture's expected share repurchases. As previously stated, the company expects operating cash flow to be $1.85 billion to $2.05 billion, property and equipment additions to be $400 million, free cash flow to be in the range of $1.45 billion to $1.65 billion, and the annual effective tax rate to be in the range of 32 percent to 34 percent. Accenture continues to target new bookings for fiscal year 2005 in the range of $18 billion to $20 billion. 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 2005 financial results. To participate, please dial +1 (800) 230-1074 (+1 (612) 288-0318 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 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 Web site 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 762547 from 9:45 p.m. EST Thursday Thursday: see week. , Jan. 6 through 11:59 p.m. EST Thursday, Jan. 20. 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 company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance 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 100,000 people in 48 countries, the company generated net revenues of US$13.67 billion for the fiscal year ended Aug. 31, 2004. 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 operating income and fully diluted earnings per share growth excluding reorganization costs and benefits because Accenture's management believes this information provides investors with additional information regarding Accenture's results of operations. Accenture also excludes reorganization and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. as well as certain other items from diluted earnings per share for purposes of determining the amount, if any, of variable compensation to be accrued. Accenture also discloses free cash flow, defined as operating cash flow net of property and equipment additions. Accenture's management believes that by providing more visibility on free cash flow and reconciling it to operating cash flow, Accenture provides another consistent metric from which the quality of its business may be monitored. 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 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 GAAP.
ACCENTURE LTD
CONSOLIDATED INCOME STATEMENTS
For the Three Months Ended November 30, 2004 and 2003
(In thousands of U.S. dollars, except share and per share data)
(Unaudited)
2004 2003
--------------------- -----------------------
% of Net % of Net
Revenues Revenues
-------- --------
REVENUES:
Revenues before
reimbursements (Net
revenues) $3,730,355 100% $3,261,585 100%
Reimbursements 341,017 9% 312,903 10%
------------ -------- -------------- --------
Revenues 4,071,372 109% 3,574,488 110%
OPERATING EXPENSES:
Cost of services:
Cost of services before
reimbursable expenses 2,500,439 67% 2,150,890 66%
Reimbursable expenses 341,017 9% 312,903 10%
------------ -------- -------------- --------
Cost of services 2,841,456 76% 2,463,793 76%
Sales and marketing 360,943 10% 350,597 11%
General and
administrative costs 403,815 11% 339,356 10%
Reorganization costs
(benefits) 7,008 0% (86,398) (3%)
------------ -------- -------------- --------
Total operating
expenses 3,613,222 97% 3,067,348 94%
------------ -------- -------------- --------
OPERATING INCOME 458,150 12% 507,140 16%
Gain on investments, net 14,540 0% 498 0%
Interest income 20,121 1% 10,423 0%
Interest expense (6,316) 0% (5,751) 0%
Other income (expense) (2,327) 0% 1,526 0%
Equity in losses of
affiliates -- 0% (686) 0%
------------ -------- -------------- --------
INCOME BEFORE INCOME
TAXES 484,168 13% 513,150 16%
Provision for income
taxes 164,617 4% 178,576 5%
------------ -------- -------------- --------
INCOME BEFORE MINORITY
INTEREST 319,551 9% 334,574 10%
Minority interest (123,278) (3%) (160,234) (5%)
------------ -------- -------------- --------
NET INCOME $ 196,273 5% $ 174,340 5%
============ ======== ============== ========
EARNINGS PER SHARE:
- Basic $ 0.33 $ 0.34
============ ==============
- Diluted $ 0.32 $ 0.33
============ ==============
WEIGHTED AVERAGE SHARES:
- Basic 590,029,649 519,417,011
- Diluted 980,298,997 1,019,952,588
ACCENTURE LTD
SUMMARY OF REVENUES
For the Three Months Ended November 30, 2004 and 2003
(In thousands of U.S. dollars)
(Unaudited)
Percent Percent
Three Months Increase/ of Total
Ended Percent (Decrease) 2005
November 30, Increase Local Net
2004 2003 US $ Currency Revenues
---------- ------- -------- ---------- ---------
OPERATING GROUPS
Communications &
High Tech $ 972,931 $879,010 11% 6% 26%
Financial
Services 806,693 646,049 25% 17% 22%
Government 523,803 478,219 10% 5% 14%
Products 862,198 701,141 23% 17% 23%
Resources 564,392 554,627 2% (4%) 15%
Other 338 2,539 n/m n/m 0%
----------- ---------- -------
TOTAL Net
Revenues 3,730,355 3,261,585 14% 9% 100%
=======
Reimbursements 341,017 312,903 9%
---------- ----------
TOTAL
REVENUES $4,071,372 $3,574,488 14%
========== ==========
GEOGRAPHY
Americas $1,542,204 $1,491,569 3% 3% 41%
EMEA 1,918,187 1,550,130 24% 12% 52%
Asia Pacific 269,964 219,886 23% 19% 7%
---------- ---------- -------
TOTAL Net
Revenues 3,730,355 3,261,585 14% 9% 100%
=======
Reimbursements 341,017 312,903 9%
---------- ----------
TOTAL
REVENUES $4,071,372 $3,574,488 14%
========== ==========
n/m = not meaningful
ACCENTURE LTD
OPERATING INCOME BY OPERATING GROUP (OG)
For the Three Months Ended November 30, 2004 and 2003
(In thousands of U.S. dollars)
(Unaudited)
Operating Income as Reported
--------------------------------------
November 30, 2004 November 30, 2003
------------------- ------------------
Percent Percent Increase
of OG of OG (Decrease)
Operating Operating Net Operating Net ----------------
Groups Income Revenues Income Revenues US$ Percent
------------------- ------------------ ----------------
Communications
& High Tech $149,329 15% $ 75,032 9% $ 74,297 99%
Financial
Services 95,426 12% 103,680 16% (8,254) (8%)
Government 46,267 9% 93,903 20% (47,636) (51%)
Products 85,868 10% 133,837 19% (47,969) (36%)
Resources 81,260 14% 100,421 18% (19,161) (19%)
Other -- n/m 267 11% (267) (100%)
------------------ ------------------ ----------------
Total Operating
Income $458,150 12% $507,140 16% $(48,990) (10%)
================== ================== ================
Operating Income Excluding Reorganization
Costs/Benefit (1)
-------------------------------------
November 30, 2004 November 30, 2003
------------------ ----------------
Percent Percent Increase
of OG of OG (Decrease)
Operating Operating Net Operating Net ----------------
Groups Income Revenues Income Revenues US$ Percent
------------------- ------------------ ----------------
Communications &
High Tech $151,071 16% $ 53,322 6% $97,749 183%
Financial
Services 96,960 12% 84,729 13% 12,231 14%
Government 47,383 9% 81,194 17% (33,811) (42%)
Products 87,491 10% 114,903 16% (27,412) (24%)
Resources 82,253 15% 86,327 16% (4,074) (5%)
Other -- n/m 267 11% (267) (100%)
------------------ ------------------ ----------------
Total Operating
Income $465,158 12% $420,742 13% $44,416 11%
================== ================== ===============
n/m = not meaningful
(1) For the three months ended November 30, 2004, Accenture
recorded reorganization costs of $7,008 relating to
Accenture's transition to a corporate structure in 2001,
allocated to the operating groups in the following amounts:
Communications & High Tech $1,742; Financial Services $1,534;
Government $1,116; Products $1,623; and Resources $993. For
the three months ended November 30, 2003, Accenture recorded a
benefit of $86,398 relating to a decrease in reorganization
liabilities established in connection with Accenture's
transition to a corporate structure in 2001, allocated to the
operating groups in the following amounts: Communications &
High Tech $21,710; Financial Services $18,951; Government
$12,709; Products $18,934; and Resources $14,094. These
amounts are excluded from the table.
ACCENTURE LTD
CONSOLIDATED BALANCE SHEETS
November 30, 2004 and August 31, 2004
(In thousands of U.S. dollars)
November 30, August 31,
2004 2004
------------ -----------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $2,273,522 $2,552,958
Short-term investments 591,714 285,288
Receivables from clients, net 1,825,284 1,662,211
Unbilled services 1,489,075 1,049,870
Other current assets 733,893 661,689
----------- -----------
Total current assets 6,913,488 6,212,016
----------- -----------
NON-CURRENT ASSETS:
Investments 392,595 340,121
Property and equipment, net 656,526 643,946
Other non-current assets 949,612 872,223
----------- -----------
Total non-current assets 1,998,733 1,856,290
----------- -----------
TOTAL ASSETS $8,912,221 $8,068,306
=========== ===========
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term debt $ 38,490 $ 31,715
Accounts payable 733,112 523,931
Deferred revenues 982,407 980,461
Accrued payroll and related benefits 1,412,645 1,508,126
Other accrued liabilities 1,600,051 1,449,378
----------- -----------
Total current liabilities 4,766,705 4,493,611
----------- -----------
NON-CURRENT LIABILITIES:
Long-term debt 1,508 2,161
Other non-current liabilities 1,279,456 1,159,765
----------- -----------
Total non-current liabilities 1,280,964 1,161,926
----------- -----------
MINORITY INTEREST 1,109,859 940,963
----------- -----------
EQUITY:
Shareholders' equity 1,754,693 1,471,806
----------- -----------
Total equity 1,754,693 1,471,806
----------- -----------
TOTAL LIABILITIES AND EQUITY $8,912,221 $8,068,306
=========== ===========
ACCENTURE LTD
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP
ADJUSTED DILUTED EARNINGS PER SHARE
For the Three Months Ended November 30, 2004 and 2003
(In thousands of U.S. dollars, except share and per share data)
(Unaudited)
2004 2003
------------------------ --------------------------
As Reported As Adjusted As Reported As Adjusted
----------- ----------- ------------ ------------
Net income $ 196,273 $ 196,273 $ 174,340 $ 174,340
Minority
interest (1) 121,681 121,681 160,158 160,158
----------- ----------- ------------ ------------
Net income for
per share
calculation 317,954 317,954 334,498 334,498
Adjustments
Reorganization
Cost/(Benefit) --- 7,008 --- (86,398)
Reorganization
Cost/(Benefit),
tax effect (2)(3) --- (2,383) --- 22,668
----------- ----------- ------------ ------------
Net income for
per share
calculation $ 317,954 $ 322,579 $ 334,498 $ 270,768
Weighted
average
diluted
shares 980,298,997 980,298,997 1,019,952,588 1,019,952,588
Earnings per
Share $ 0.32 $ 0.33 $ 0.33 $ 0.27
Year-over-Year
(Decrease) Increase (3)% 22 %
(1) This represents minority interest attributable to Accenture
SCA Class I common shares and Accenture Canada Holdings Inc.
exchangeable shares not held by Accenture.
(2) The $2,383 tax amount for fiscal 2005 is based upon an annual
effective tax rate of 34% for fiscal 2005.
(3) The fiscal 2004 reorganization benefit of $86,398 reduced the
2004 annual effective tax rate from 36.6% to 34.8% but
increased income tax expense in the first quarter by $22,668
because the annual tax rate reduction was allocated over all
four fiscal 2004 quarters.
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