Accenture Reports Strong First-Quarter Results; Company Achieves Solid Growth in Revenues and Operating Income.Business Editors NEW YORK--(BUSINESS WIRE)--Jan. 9, 2002 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 strong results for the first quarter of fiscal year 2002, ended Nov. 30, 2001. These results are in line with the company's announcement in December December: see month. in which it said it would exceed the analysts' projections at that time. Revenues before reimbursements ("net revenues") for the first quarter were approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.99 billion, the highest quarterly revenues in the company's history, representing an increase of 6 percent in both US dollars and local currency over the first quarter of fiscal 2001. 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 $414 million, or 14 percent of net revenues for the quarter. Income before minority interest, excluding investment writedowns and the related tax effect, was $258 million. 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 , on the same basis, were $0.25. Income before minority interest, including investment writedowns and the related tax effect, was $200 million, and diluted earnings per share, on the same basis, were $0.20. "Our strong performance in the first quarter, especially during a period of economic uncertainty, demonstrates our ability to deliver the innovative solutions our clients need," said Joe W. Forehand forehand the head, neck, shoulders, withers and forelimbs of the horse. , Accenture chairman and 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. . "Our continued focus on business transformation helped us achieve 32 percent revenue growth in 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. during the quarter. "With new sales of approximately $5.6 billion in the first four months of the fiscal year, we are succeeding in executing our growth strategy, enabling us to continue to build value for our shareholders," added Forehand. Strong growth in three of Accenture's five global market units contributed to its solid first-quarter results. Net revenues for Accenture's Government global market unit were $337 million, a 58 percent increase over the first quarter of fiscal 2001. Accenture's Products and Resources global market units reported net revenues of $650 million and $541 million, respectively, increases of 22 percent and 17 percent. First-quarter net revenues for the Communications & High Tech and 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. global market units were $743 million and $717 million, respectively, down 14 percent and 6 percent from their first-quarter fiscal 2001 levels, reflecting the challenges that the financial services, communications and technology sectors faced during the period. Net revenues in Accenture's 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). , Middle East, Africa and
India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. (EMEAI EMEAI Europe, Middle East, Africa, India ) 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. region increased 26 percent in US dollars over the first quarter of fiscal 2001, to $1.33 billion, and were a significant factor in the company's overall growth during the period. Net revenues in the Asia Pacific region decreased 2 percent in US dollars, to $221 million, but increased 6 percent in local currency. Net revenues in the Americas A·mer·i·cas , the See America. region were $1.44 billion, down 7 percent in US dollars and 6 percent in local currency. As the company previously stated, its loss on investments in the first quarter included a $90 million charge related to the company's venture and investment portfolio. With respect to its previously reported plan to reposition this portfolio, Accenture intends to present potential alternatives to its Board for consideration, and it expects to finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... an alternative by the end of the second quarter of fiscal 2002. Looking ahead, Accenture said that it is comfortable with analysts' consensus earnings estimates for the second quarter of fiscal 2002, ending Feb. 28, 2002, and that analysts' consensus estimates for the remainder of the fiscal year are reasonable. Accenture will host a conference call at 8:00 a.m. (EST EST electroshock therapy. EST abbr. electroshock therapy ) today to discuss its first-quarter fiscal 2002 financial results. To participate, please dial +1 (800) 230-1074 (+1 (612) 288-0337 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/investor. A replay of the conference call will be available at www.accenture.com/investor, or by dialing +1 (800) 475-6701 )+1 (320) 365-3844 outside the United States, Puerto Rico and Canada) and entering the passcode 618946 from 1:15 p.m. (EST) Wednesday Wednesday: see week. , Jan. 9 through 11:59 p.m. (EST) Wednesday, Jan. 23. About Accenture Accenture is the world's leading 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 and technology services organization. Through its network of businesses approach -- in which the company enhances its consulting and outsourcing expertise through alliances, affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. and other capabilities -- Accenture delivers innovations that help clients across all industries quickly realize their visions. With more than 75,000 people in 47 countries, the company generated net revenues of $11.44 billion for the fiscal year ended August 31, 2001. Its home page is www.accenture.com. This press release contains 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. , 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 heading "Forward-Looking Statements and Certain Factors That May Affect Our Business" in 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 LTD
CONSOLIDATED INCOME STATEMENT
COMBINED PRO FORMA INCOME STATEMENT
For the Three Months Ended November 30, 2001 and 2000
(unaudited)
(In thousands of U.S. dollars except share data)
Consolidated Combined Pro forma
Income Income
Statement 2001 Statement 2000 (1)
-------------- ------------------
% of Net % of Net
Revenues Revenues
-------- --------
REVENUES:
Revenues before
reimbursements (Net revenues) $ 2,988,630 100% $ 2,831,298 100%
Reimbursements 419,880 14% 406,994 14%
----------- --- ----------- ---
Revenues 3,408,510 114% 3,238,292 114%
OPERATING EXPENSES:
Cost of services:
Cost of services
before reimbursable expenses 1,806,181 60% 1,710,590 61%
Reimbursable expenses 419,880 14% 406,994 14%
----------- --- ----------- ---
Cost of services 2,226,061 74% 2,117,584 75%
Sales and marketing 360,235 12% 326,818 11%
General and
administrative costs 407,957 14% 405,477 14%
----------- --- ----------- ---
Total operating expenses 2,994,253 100% 2,849,879 100%
----------- --- ----------- ---
OPERATING INCOME 414,257 14% 388,413 14%
Gain (loss) on investments, net (94,737) (3%) 219,104 8%
Interest income 14,785 0% 22,549 1%
Interest expense (9,770) 0% (9,430) (1%)
Other income (expense) (7,933) 0% 6,675 0%
Equity in gains
(losses) of affiliates 6,201 0% (20,441) (1%)
---------- --- ----------- ---
INCOME BEFORE TAXES 322,803 11% 606,870 21%
Provision for taxes 122,665 4% 244,393 8%
---------- --- ----------- ---
INCOME BEFORE
MINORITY INTEREST (2) 200,138 7% 362,477 13%
Minority interest (118,462) (4%) (214,000) (8%)
---------- --- ----------- ---
$
NET INCOME $ 81,676 3% $ 148,477 5%
========== === =========== ===
EARNINGS PER SHARE:
- Basic $ 0.20 $ 0.36
====== ======
- Diluted $ 0.20 $ 0.36
====== ======
ADJUSTED TO EXCLUDE GAIN (LOSS) ON INVESTMENTS, NET
INCOME BEFORE MINORITY
INTEREST AS REPORTED $ 200,138 $ 362,477
Add Back: Gain (loss) on
investments, net of tax impact (58,037) 130,868
--------- ---------
ADJUSTED INCOME
BEFORE MINORITY INTEREST $ 258,175 $ 231,609
========= =========
ADJUSTED EARNINGS PER SHARE
- Basic $ 0.26 $ 0.23
====== ======
- Diluted $ 0.25 $ 0.23
====== ======
WEIGHTED AVERAGE SHARES:
- Basic 410,488,771 412,705,954
============= =============
- Diluted 1,014,448,500 1,008,163,290
============= =============
NOTES TO CONSOLIDATED AND COMBINED PRO FORMA INCOME STATEMENTS
(1) Pro forma results for 2000 reflect adjustments to (1) eliminate
the effects of one-time events directly attributable to our
transition to a corporate structure and our initial public
offering and related transactions and (2) present results as if
our transition to a corporate structure had occurred on September
1, 1999. One-time items eliminated include reorganization costs of
$5,000 relating to our transition to a corporate structure,
rebranding costs of $25,000 to rename the organization, and income
of $188,000 due to the adoption of SFAS 133. Adjustments to
reflect the transition to a corporate structure include $481,000
of operating expense for partner compensation and $5,000 of
interest expense related to retirement benefits payable to
partners.
Provision for taxes has been adjusted to include the tax effect on
the pro forma adjustments and to reflect an estimated corporate
tax expense to present results on a corporate basis. Minority
interest has been adjusted as if the minority had existed for the
three months ended November 30, 2000. Minority interest and
earnings per Class A share are based on the assumption that shares
and share equivalents outstanding as of August 31, 2001, were
outstanding for the entire fiscal year ended August 31, 2001.
(2) Income before minority interest represents the consolidated income
of Accenture Ltd earned through its subsidiary, Accenture SCA,
without regard to Accenture Ltd's ownership percentage in
Accenture SCA. The minority interest expense eliminates the income
earned by the partners who have an equity ownership directly in
Accenture SCA. The resulting net income of Accenture Ltd
represents the income attributable to the shareholders of
Accenture Ltd.
ACCENTURE LTD
CONSOLIDATED BALANCE SHEETS
August 31, 2001 and November 30, 2001
(In thousands of U.S. dollars)
August 31, November 30,
2001 2001
----------- -----------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,880,083 $ 1,129,517
Receivables from clients, net 1,498,812 1,534,348
Unbilled services 731,802 930,389
Other current assets 468,940 479,289
----------- -----------
Total current assets 4,579,637 4,073,543
----------- -----------
NON-CURRENT ASSETS:
Investments 324,139 259,906
Property and equipment, net 822,318 787,121
Other non-current assets 335,262 302,101
----------- -----------
Total non-current assets 1,481,719 1,349,128
----------- -----------
TOTAL ASSETS $ 6,061,356 $ 5,422,671
=========== ===========
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term debt $ 190,669 $ 218,442
Accounts payable 371,794 360,724
Deferred revenue 810,043 719,063
Accrued payroll
and related benefits 1,050,385 1,107,426
Other accrued liabilities 1,755,929 955,142
----------- -----------
Total current liabilities 4,178,820 3,360,797
----------- -----------
NON-CURRENT LIABILITIES:
Long-term debt 1,090 4,362
Other non-current liabilities 1,191,332 1,178,372
----------- -----------
Total non-current liabilities 1,192,422 1,182,734
----------- -----------
MINORITY INTEREST 407,926 526,388
----------- -----------
EQUITY:
Shareholders' equity 282,188 352,752
----------- -----------
Total equity 282,188 352,752
----------- -----------
TOTAL LIABILITIES AND EQUITY $ 6,061,356 $ 5,422,671
=========== ===========
ACCENTURE LTD
SUMMARY OF REVENUES
For the Three Months Ended November 30, 2001 and 2000
(unaudited)
(In thousands of U.S. dollars)
Percent Percent
Percent increase/ of Total
increase/ (decrease)2001
(decrease) Local Net
2001 2000 US$ currency Revenues
------ ------ --------- --------- --------
GLOBAL MARKET UNIT
Communications
& High Tech $743,215 $864,870 (14)% 25%
Financial Services 716,707 758,563 (6)% 24%
Government 336,519 213,103 58% 11%
Products 649,829 532,404 22% 22%
Resources 540,908 460,750 17% 18%
Other 1,452 1,608 (10)% 0%
--------- --------- ---- ---
TOTAL Net Revenues 2,988,630 2,831,298 6% 100%
====
Reimbursements 419,880 406,994 3%
--------- ---------
TOTAL REVENUES $3,408,510 $3,238,292 5%
========== ==========
GEOGRAPHY
Americas $ 1,441,338 $1,551,091 (7)% (6)% 48%
EMEAI 1,326,446 1,055,934 26% 23% 44%
Asia Pacific 220,846 224,273 (2)% 6% 8%
----------- ---------- --- ---- ----
TOTAL Net Revenues 2,988,630 2,831,298 6% 6% 100%
Reimbursements 419,880 406,994 3%
----------- ----------
TOTAL REVENUES $3,408,510 $3,238,292 5%
=========== ==========
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