Accenture Reports Second-Quarter 2005 Financial Results; Revenues Increase 15%, to $3.81 Billion; EPS $0.35.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 financial results for the second quarter of fiscal 2005, ended Feb. 28, 2005, with record net revenues of $3.81 billion and 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. of $0.35, a 59 percent increase over the same quarter last year. Net revenues grew 15 percent overall, with consulting increasing 14 percent 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. increasing 18 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 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. Financial Highlights --Revenues before reimbursements ("net revenues") were $3.81 billion, compared with $3.30 billion for the second quarter of fiscal 2004, an increase of 15 percent in U.S. dollars and 10 percent in local currency, and ahead of the company's expected range of $3.60 billion to $3.75 billion. --Diluted earnings per share were $0.35, compared with $0.22 for the second quarter last year, at the high end of the company's expected range of $0.33 to $0.35. --Operating income was $472 million, or 12.4 percent of net revenues, compared with $307 million, or 9.3 percent of net revenues, for the second quarter last year. --New bookings totaled $4.88 billion, with consulting accounting for $2.81 billion, up 43 percent from the first quarter of fiscal 2005, and outsourcing accounting for $2.07 billion. 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 had 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 this quarter, with double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth in both EPS and revenues, including 14 percent growth in consulting revenues and 18 percent growth in outsourcing revenues. We had solid quarterly new bookings of $4.88 billion, bringing new bookings for the first half of the year to $8.91 billion. In addition, we made great progress on the operational challenges that we identified in the first quarter, including our free cash flow, client balances and attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: . "We remain focused on making further operational improvements and are confident in our ability to achieve our financial objectives for the fiscal year while continuing to deliver results for our clients." Financial Review Gross margin (revenues less cost of services, as a percentage of net revenues) was 30.8 percent, compared with 33.0 percent for the second quarter of fiscal 2004. 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 $738 million, or 19.4 percent of net revenues, compared with $675 million, or 20.4 percent of net revenues, for the second quarter last year. Accenture recorded net 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. benefits of $36 million in the second quarter of fiscal 2005. In the second quarter last fiscal year, the company incurred a $107 million restructuring charge 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 a result of a global real estate consolidation. 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. was $472 million, or 12.4 percent of net revenues, for the second quarter of fiscal 2005, compared with $307 million, or 9.3 percent of net revenues, for the second quarter last year. Excluding reorganization benefits and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs, operating income for the second quarter of fiscal 2005 was $436 million, or 11.4 percent of net revenues, compared with $415 million, or 12.6 percent of net revenues, for the second quarter of fiscal 2004. The decrease in operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was due primarily to three factors: (1) temporary delays in deploying systems under the company's contracts with a large client; (2) incurred and expected cost-overruns associated with developing reusable re·use tr.v. re·used, re·us·ing, re·us·es To use again, especially after salvaging or special treatment or processing. re·us assets, in connection with certain client engagements, that will be used to create offerings to support multiple clients; and, to a lesser extent, (3) delivery inefficiencies, including staffing issues that the company identified in the first quarter of fiscal 2005. 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 expense in the second quarter, which partially offset this decline in operating margin. The company's effective tax rate for the second quarter of fiscal 2005 was 30.6 percent, compared with 34.8 percent for the same period last year. The 30.6 percent effective tax rate includes the effect of the reduction in the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. tax rate from 34.0 percent to 32.3 percent as a result of changes in the company's forecasted mix of geographic income and the reduction in reorganization liabilities. Income before minority interest was $341 million, compared with $220 million for the same period last year. Accenture's total cash balance at Feb. 28, 2005 was $3.06 billion, compared with $2.55 billion at Aug. 31, 2004 and $2.27 billion at Nov. 30, 2004. Cash combined with $702 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 $3.76 billion at Feb. 28, 2005, compared with $3.15 billion at Aug. 31, 2004 and $3.21 billion at Nov. 30, 2004. For the three months ended Feb. 28, 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 $787 million and property and equipment additions were $61 million. Free cash flow, defined as operating cash flow net of property and equipment additions, was $726 million. Total debt at Feb. 28, 2005 was $82 million. For the six months ended Feb. 28, 2005, operating cash flow was $726 million and property and equipment additions were $116 million. Free cash flow, defined as operating cash flow net of property and equipment additions, was $610 million. For the six months ended Feb. 29, 2004, operating cash flow was $993 million, property and equipment additions were $101 million and free cash flow was $892 million. Consulting and Outsourcing Net Revenues --Consulting net revenues were $2.30 billion, or 60 percent of total net revenues, an increase of 14 percent in U.S. dollars and 8 percent in local currency over the second quarter of fiscal 2004. --Outsourcing accounted for $1.51 billion, or 40 percent of total net revenues, an increase of 18 percent in U.S. dollars and 13 percent in local currency over the same period last year. Net Revenues by Operating Group Net revenues for Accenture's five operating groups were as follows: --Communications & High Tech: $982 million, compared with $931 million for the second quarter of fiscal 2004, an increase of 6 percent in U.S. dollars and 1 percent in local currency. --Financial Services: $859 million, compared with $648 million for the same period last year, an increase of 33 percent in U.S. dollars and 25 percent in local currency. --Government: $521 million, compared with $468 million for the year-ago period, an increase of 11 percent in U.S. dollars and 7 percent in local currency. --Products: $851 million, compared with $715 million for the year-ago period, an increase of 19 percent in U.S. dollars and 14 percent in local currency. --Resources: $596 million, compared with $538 million for the same period last year, an increase of 11 percent in U.S. dollars and 5 percent in local currency. Net Revenues by Geographic Region Net revenues by geographic region were as follows: --Americas: $1.54 billion, compared with $1.50 billion for the year-ago period, an increase of 3 percent in U.S. dollars and 2 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. ): $2.00 billion, compared with $1.58 billion for the second quarter of fiscal 2004, an increase of 27 percent in U.S. dollars and 17 percent in local currency. --Asia Pacific: $275 million, compared with $225 million for the year-ago period, an increase of 22 percent in U.S. dollars and 15 percent in local currency. 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 second quarter of fiscal 2005 Accenture repurchased $207 million of its shares, as planned. This included $121 million for purchases of 4.7 million Accenture Ltd Class A common shares and $86 million for 3.5 million Accenture SCA (Single Connector Attachment) An 80-pin plug and socket used to connect peripherals. With a SCSI drive, it rolls three cables (power, data channel and ID configuration) into one connector for fast installation and removal. Class I common shares repurchased from partners, retired partners and their permitted transferees. At Feb. 28, 2005, Accenture had $3.05 billion of share repurchase authority remaining, of which $913 million 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. On March 7, 2005, Accenture closed a tender offer initiated during the second quarter of the fiscal year and purchased 18.7 million Accenture SCA Class I common shares for $501 million. In addition, 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. between $600 million and $1.1 billion worth of its shares during the remainder of fiscal year 2005, through both open-market share purchases and its ongoing Share Management Plan transactions. Business Outlook Third Quarter Fiscal 2005 For the third quarter of fiscal 2005, Accenture expects net revenues to be in the range of $4.0 billion to $4.2 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 to be in the range of $0.48 to $0.50. GAAP diluted earnings per share for the third quarter will include a benefit of $0.06 per share from a $69 million reduction in reorganization liabilities that were established in connection with Accenture's transition to corporate structure in 2001. This reduction was recognized in March 2005. Full Fiscal Year 2005 For the full fiscal year 2005, Accenture continues to expect net revenue growth to be in the range of 13 percent to 16 percent in U.S. dollars and 9 percent to 12 percent in local currency. The company has revised its guidance for GAAP diluted earnings per share upward to the range of $1.49 to $1.53. For the full fiscal year, reductions in reorganization liabilities are expected to contribute $0.11 per share to diluted earnings per share. Also for the full fiscal year 2005, Accenture continues to expect operating cash flow to be $1.85 billion to $2.05 billion; property and equipment additions to be $400 million; and free cash flow to be in the range of $1.45 billion to $1.65 billion, although the company currently expects to be at the low end of this range. The company now expects the annual effective tax rate to be in the range of 31 percent to 33 percent. The company reiterated that it is targeting 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. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT today to discuss its second-quarter 2005 financial results. To participate, please dial +1 (888) 276-9998 (+1 (612) 332-0335 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 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 775402 from 9:45 p.m. EDT Thursday Thursday: see week. , April 7 through 11:59 p.m. EDT Thursday, April 21. 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 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 110,000 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 free cash flow (defined as operating cash flow net of property and equipment additions) as well as operating income excluding reorganization benefits and costs and restructuring costs because Accenture's management believes doing so provides investors with additional information regarding 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 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 February 28, 2005 and February 29, 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) $3,813,522 100% $3,302,209 100%
Reimbursements 402,862 11% 380,095 12%
------------ -------- ------------ --------
Revenues 4,216,384 111% 3,682,304 112%
OPERATING EXPENSES:
Cost of services:
Cost of services
before reimbursable
expenses 2,638,950 69% 2,212,547 67%
Reimbursable expenses 402,862 11% 380,095 12%
------------ -------- ------------ --------
Cost of services 3,041,812 80% 2,592,642 79%
Sales and marketing 376,919 10% 358,662 11%
General and
administrative costs 361,478 9% 316,133 10%
Reorganization
(benefits) costs and
restructuring costs (35,777) (1%) 107,438 3%
------------ -------- ------------ --------
Total operating
expenses 3,744,432 98% 3,374,875 102%
------------ -------- ------------ --------
OPERATING INCOME 471,952 12% 307,429 9%
Gain on investments, net 93 0% 3,332 0%
Interest income 28,063 1% 15,187 0%
Interest expense (6,300) 0% (5,816) 0%
Other income (expense) (2,846) 0% 17,765 1%
Equity in losses of
affiliates -- 0% (516) 0%
------------ -------- ------------ --------
INCOME BEFORE INCOME TAXES 490,962 13% 337,381 10%
Provision for income taxes 150,350 4% 117,408 4%
------------ -------- ------------ --------
INCOME BEFORE MINORITY
INTEREST 340,612 9% 219,973 7%
Minority interest -
Accenture SCA and
Accenture Canada Holdings
Inc (128,688) (3%) (96,987) (3%)
Minority interest - other
(1) (2,138) 0% 103 0%
------------ -------- ------------ --------
NET INCOME $209,786 6% $123,089 4%
============ ======== ============ ========
CALCULATION OF EARNINGS
PER SHARE:
Net income $209,786 $123,089
Minority interest -
Accenture SCA and
Accenture Canada Holdings
Inc. (2) 128,688 96,987
------------ ------------
Net income for diluted
earnings per share
calculation $338,474 $220,076
EARNINGS PER SHARE:
- Basic $0.35 $0.23
============ ============
- Diluted $0.35 $0.22
============ ============
WEIGHTED AVERAGE SHARES:
- Basic 591,694,862 544,052,062
- Diluted 979,750,161 998,003,396
(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
CONSOLIDATED INCOME STATEMENTS
For the Six Months Ended February 28, 2005 and February 29, 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) $7,543,877 100% $6,563,794 100%
Reimbursements 743,879 10% 692,998 11%
---------------- -------- -------------- --------
Revenues 8,287,756 110% 7,256,792 111%
OPERATING EXPENSES:
Cost of
services:
Cost of services
before
reimbursable
expenses 5,154,389 68% 4,363,437 66%
Reimbursable
expenses 743,879 10% 692,998 11%
---------------- -------- -------------- --------
Cost of
services 5,898,268 78% 5,056,435 77%
Sales and
marketing 735,862 10% 709,259 11%
General and
administrative
costs 752,293 10% 655,489 10%
Reorganization
(benefits) and
restructuring
costs (28,769) 0% 21,040 0%
---------------- -------- -------------- --------
Total
operating
expenses 7,357,654 98% 6,442,223 98%
---------------- -------- -------------- --------
OPERATING INCOME 930,102 12% 814,569 12%
Gain on investments,
net 14,633 0% 3,830 0%
Interest income 48,184 1% 25,610 0%
Interest expense (12,616) 0% (11,567) 0%
Other income
(expense) (5,173) 0% 19,291 0%
Equity in losses of
affiliates -- 0% (1,202) 0%
---------------- -------- -------------- --------
INCOME BEFORE INCOME
TAXES 975,130 13% 850,531 13%
Provision for income
taxes 314,967 4% 295,984 5%
---------------- -------- -------------- --------
INCOME BEFORE
MINORITY INTEREST 660,163 9% 554,547 8%
Minority interest in
Accenture SCA and
Accenture Canada
Holdings Inc (250,369) (3%) (257,145) (4%)
Minority interest -
other (1) (3,735) 0% 27 0%
---------------- -------- -------------- --------
NET INCOME $406,059 5% $297,429 5%
================ ======== ============== ========
CALCULATION OF
EARNINGS PER SHARE:
Net income $406,059 $297,429
Minority interest in
Accenture SCA and
Accenture Canada
Holdings Inc. (2) 250,369 257,145
---------------- --------------
Net income for
diluted earnings
per share
calculation $656,428 $554,574
EARNINGS PER SHARE:
- Basic $0.69 $0.56
================ ==============
- Diluted $0.67 $0.55
================ ==============
WEIGHTED AVERAGE
SHARES:
- Basic 590,746,753 531,738,351
- Diluted 979,880,579 1,009,403,593
(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
SUMMARY OF REVENUES
For the Three and Six Months Ended February 28, 2005 and
February 29, 2004
(In thousands of U.S. dollars)
(Unaudited)
Three Months Ended
-----------------------
February February
28, 29,
2005 2004
-----------------------
OPERATING GROUPS
Communications & High Tech $982,088 $930,812
Financial Services 859,336 647,531
Government 521,111 467,926
Products 851,394 715,386
Resources 596,493 538,268
Other 3,100 2,286
----------- -----------
TOTAL Net Revenues 3,813,522 3,302,209
Reimbursements 402,862 380,095
----------- -----------
TOTAL REVENUES $4,216,384 $3,682,304
=========== ===========
GEOGRAPHY
Americas $1,542,031 $1,501,120
EMEA 1,996,181 1,575,653
Asia Pacific 275,310 225,436
----------- -----------
TOTAL Net Revenues 3,813,522 3,302,209
Reimbursements 402,862 380,095
----------- -----------
TOTAL REVENUES $4,216,384 $3,682,304
=========== ===========
Percent Percent
Percent Increase/ of Total
Increase (Decrease) 2005
US Local Net
$ Currency Revenues
------------- ------------ ---------
OPERATING GROUPS
Communications & High Tech 6% 1% 26%
Financial Services 33% 25% 22%
Government 11% 7% 14%
Products 19% 14% 22%
Resources 11% 5% 16%
Other n/m n/m 0%
---------
TOTAL Net Revenues 15% 10% 100%
=========
Reimbursements 6%
TOTAL REVENUES 15%
GEOGRAPHY
Americas 3% 2% 41%
EMEA 27% 17% 52%
Asia Pacific 22% 15% 7%
---------
TOTAL Net Revenues 15% 10% 100%
=========
Reimbursements 6%
TOTAL REVENUES 15%
Six Months Ended
----------------------
February February
28, 29,
2005 2004
----------------------
OPERATING GROUPS
Communications & High Tech $1,955,019 $1,809,822
Financial Services 1,666,029 1,293,580
Government 1,044,914 946,145
Products 1,713,592 1,416,527
Resources 1,160,885 1,092,895
Other 3,438 4,825
----------- -----------
TOTAL Net Revenues 7,543,877 6,563,794
Reimbursements 743,879 692,998
----------- -----------
TOTAL REVENUES $8,287,756 $7,256,792
=========== ===========
GEOGRAPHY
Americas $3,084,236 $2,992,689
EMEA 3,914,367 3,125,783
Asia Pacific 545,274 445,322
----------- -----------
TOTAL Net Revenues 7,543,877 6,563,794
Reimbursements 743,879 692,998
----------- -----------
TOTAL REVENUES $8,287,756 $7,256,792
=========== ===========
Percent Percent
Percent Increase/ of Total
Increase (Decrease) 2005
US Local Net
$ Currency Revenues
------------- ------------ ---------
OPERATING GROUPS
Communications & High Tech 8% 4% 26%
Financial Services 29% 21% 22%
Government 10% 6% 14%
Products 21% 15% 23%
Resources 6% 0% 15%
Other n/m n/m 0%
---------
TOTAL Net Revenues 15% 9% 100%
=========
Reimbursements 7%
TOTAL REVENUES 14%
GEOGRAPHY
Americas 3% 2% 41%
EMEA 25% 15% 52%
Asia Pacific 22% 17% 7%
---------
TOTAL Net Revenues 15% 9% 100%
=========
Reimbursements 7%
TOTAL REVENUES 14%
n/m = not meaningful
ACCENTURE LTD
OPERATING INCOME BY OPERATING GROUP (OG)
For the Three Months Ended February 28, 2005 and February 29, 2004
(In thousands of U.S. dollars)
(Unaudited)
Operating Income as Reported
-------------------------------------
February 28, 2005 February 29, 2004
------------------ ------------------
Percent Percent Increase
of OG of OG (Decrease)
Operating Net Operating Net ----------------
Operating Groups Income Revenues Income Revenues US$ Percent
------------------ ------------------ ----------------
Communications &
High Tech $138,496 14% $59,488 6% $79,008 133%
Financial
Services 127,053 15% 62,139 10% 64,914 104%
Government 13,343 3% 43,271 9% (29,928) (69%)
Products 97,991 12% 96,015 13% 1,976 2%
Resources 95,069 16% 46,783 9% 48,286 103%
Other -- n/m (267) n/m 267 100%
------------------ ------------------ ----------------
Total Operating
Income $471,952 12% $307,429 9% $164,523 54%
================== ================== ================
Non-GAAP Operating Income
(Operating Income Excluding
Reorganization Benefits and Costs and
Restructuring Costs) (1)
---------------------------------------
February 28, 2005 February 29, 2004
------------------- -------------------
Increase
Percent Percent (Decrease)
Non-GAAP of OG Non-GAAP of OG ---------------
Operating Operating Net Operating Net US$ Percent
Groups Income Revenues Income Revenues
------------------- ------------------- ---------------
Communications
& High Tech $129,598 13% $86,486 9% $43,112 50%
Financial
Services 118,971 14% 85,758 13% 33,213 39%
Government 7,682 1% 59,072 13% (51,390) (87%)
Products 89,921 11% 119,546 17% (29,625) (25%)
Resources 90,003 15% 64,272 12% 25,731 40%
Other -- n/m (267) n/m 267 100%
------------------- ------------------- ---------------
Total Operating
Income $436,175 11% $414,867 13% $21,308 5%
=================== =================== ===============
n/m = not meaningful
(1) For the three months ended February 28, 2005, Accenture
recorded net reorganization benefits of $35,777 primarily resulting
from final determinations of certain 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 $8,898; Financial Services $8,082;
Government $5,661; Products $8,070; and Resources $5,066. For the
three months ended February 29, 2004, Accenture recorded restructuring
costs of $107,256 relating to the Company's global consolidation of
office space and net reorganization costs of $182 related to certain
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
$26,998; Financial Services $23,619; Government $15,801; Products
$23,531; and Resources $17,489. These amounts are excluded from the
table.
ACCENTURE LTD
OPERATING INCOME BY OPERATING GROUP (OG)
For the Six Months Ended February 28, 2005 and February 29, 2004
(In thousands of U.S. dollars)
(Unaudited)
Operating Income as Reported
-------------------------------------
February 28, 2005 February 29, 2004
------------------ ------------------
Percent Percent Increase
of OG of OG (Decrease)
Operating Net Operating Net ----------------
Operating Groups Income Revenues Income Revenues US$ Percent
------------------ ------------------ ----------------
Communications &
High Tech $287,825 15% $134,520 7% $153,305 114%
Financial
Services 222,479 13% 165,819 13% 56,660 34%
Government 59,610 6% 137,174 14% (77,564) (57%)
Products 183,859 11% 229,852 16% (45,993) (20%)
Resources 176,329 15% 147,204 13% 29,125 20%
Other -- n/m -- n/m -- n/m
------------------ ------------------ ----------------
Total Operating
Income $930,102 12% $814,569 12% $115,533 14%
================== ================== ================
Non-GAAP Operating Income
(Operating Income Excluding
Reorganization Benefits and Costs and
Restructuring Costs) (1)
---------------------------------------
February 28, 2005 February 29, 2004
------------------- -------------------
Increase
Percent Percent (Decrease)
Non-GAAP of OG Non-GAAP of OG ----------------
Operating Operating Net Operating Net US$ Percent
Groups Income Revenues Income Revenues
------------------- ------------------- ----------------
Communications
& High Tech $280,669 14% $139,808 8% $140,861 101%
Financial
Services 215,931 13% 170,487 13% 45,444 27%
Government 55,065 5% 140,266 15% (85,201) (61%)
Products 177,412 10% 234,449 17% (57,037) (24%)
Resources 172,256 15% 150,599 14% 21,657 14%
Other -- n/m -- n/m -- n/m
------------------- ------------------- ----------------
Total
Operating
Income $901,333 12% $835,609 13% $65,724 8%
=================== =================== ================
n/m = not meaningful
(1) For the six months ended February 28, 2005, Accenture recorded
net reorganization benefits of $28,769 primarily resulting from final
determinations of certain 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 $7,156; Financial Services $6,548;
Government $4,545; Products $6,447; and Resources $4,073. For the six
months ended February 29, 2004, Accenture recorded restructuring costs
of $107,256 relating to the Company's global consolidation of office
space and net reorganization benefits of $86,216 primarily resulting
from final determinations of certain 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 $5,288; Financial Services $4,668;
Government $3,092; Products $4,597; and Resources $3,395. These
amounts are excluded from the table.
ACCENTURE LTD
CONSOLIDATED BALANCE SHEETS
February 28, 2005 and August 31, 2004
(In thousands of U.S. dollars)
February August
28, 31,
2005 2004
----------- -----------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $3,060,203 $2,552,958
Short-term investments 406,456 285,288
Receivables from clients, net 1,816,354 1,662,211
Unbilled services 1,459,331 1,049,870
Other current assets 603,704 606,867
----------- -----------
Total current assets 7,346,048 6,157,194
----------- -----------
NON-CURRENT ASSETS:
Investments 321,823 340,121
Property and equipment, net 657,444 643,946
Other non-current assets 1,017,524 872,223
----------- -----------
Total non-current assets 1,996,791 1,856,290
----------- -----------
TOTAL ASSETS $9,342,839 $8,013,484
=========== ===========
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term debt $45,605 $36,715
Accounts payable 734,995 523,931
Deferred revenues 1,321,505 980,461
Accrued payroll and related benefits 1,429,326 1,508,126
Other accrued liabilities 1,423,138 1,389,556
----------- -----------
Total current liabilities 4,954,569 4,438,789
----------- -----------
NON-CURRENT LIABILITIES:
Long-term debt 36,736 32,161
Other non-current liabilities 1,264,426 1,129,765
----------- -----------
Total non-current liabilities 1,301,162 1,161,926
----------- -----------
MINORITY INTEREST 1,200,007 940,963
----------- -----------
EQUITY:
Shareholders' equity 1,887,101 1,471,806
----------- -----------
Total equity 1,887,101 1,471,806
----------- -----------
TOTAL LIABILITIES AND EQUITY $9,342,839 $8,013,484
=========== ===========
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