Accenture Reports Very Strong Third-Quarter Results | Business

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NEW YORK–(BUSINESS WIRE)–Jun 23, 2022–

Accenture (NYSE: ACN) reported financial results for the third quarter of fiscal 2022, ended May 31, 2022, with revenues of $16.2 billion, an increase of 22% in U.S. dollars and 27% in local currency over the same period last year.

3QFY22 Earnings Infographic (Photo: Business Wire)

Operating income was $2.6 billion, a 23% increase over the same period last year, and operating margin was 16.1%, an expansion of 10 basis points.

New bookings for the quarter were $17.0 billion, a 10% increase in U.S. dollars and 15% in local currency from the third quarter last year, with consulting bookings of $9.1 billion and outsourcing bookings of $7.8 billion.

Diluted earnings per share were $2.79, a 16% increase from $2.40 for the third quarter last year, and include a $96 million, or $0.15 per share, charge related to the disposition of the company’s business in Russia.

Julie Sweet, Accenture’s Chair & CEO, said, “Our very strong financial results for the third quarter reflect continued broad-based demand across markets, services, and industries, and the continued recognition of the outstanding talent of our 710,000 people. We continue to gain significant market share, and our services have never been more relevant as our clients turn to us as the trusted partner for the solutions they need to accelerate growth and become more resilient and efficient.”

Revenues for the third quarter of fiscal 2022 were $16.16 billion, compared with $13.26 billion for the third quarter of fiscal 2021, an increase of 22% in U.S. dollars and 27% in local currency. Revenues for the quarter reflect a foreign-exchange impact of approximately negative 5%, compared with the negative 4% impact previously assumed. Adjusting for the actual foreign-exchange impact, the company’s guided range for quarterly revenues was approximately $15.55 billion to $16.0 billion. Accenture’s third-quarter fiscal 2022 revenues were approximately $160 million above this adjusted range.

  • Consulting revenues for the quarter were $9.03 billion, an increase of 24% in U.S. dollars and 30% in local currency compared with the third quarter of fiscal 2021.
  • Outsourcing revenues were $7.13 billion, an increase of 19% in U.S. dollars and 23% in local currency compared with the third quarter of fiscal 2021.

Diluted EPS for the quarter were $2.79, a 16% increase from $2.40 for the third quarter last year. The $0.39 increase in EPS reflects:

  • a $0.56 increase from higher revenue and operating results;
  • a $0.02 increase from lower share count; and
  • a $0.01 increase from lower interest and other non-operating expense;
  • a $0.15 decrease from the loss on the disposition of the company’s business in Russia;
  • a $0.04 decrease from a higher effective tax rate; and
  • a $0.01 decrease from higher non-controlling interest.

Gross margin (gross profit as a percentage of revenues) for the quarter was 32.9%, compared with 33.2% for the third quarter last year. Selling, general and administrative (SG&A) expenses for the quarter were $2.71 billion, or 16.8% of revenues, compared with $2.29 billion, or 17.2% of revenues, for the third quarter last year.

Operating income for the quarter increased 23%, to $2.60 billion, or 16.1% of revenues, compared with $2.12 billion, or 16.0% of revenues, for the third quarter of fiscal 2021.

The company’s effective tax rate for the quarter was 27.1%, compared with 25.0% for the third quarter of last year.

Net income for the quarter was $1.82 billion, a 16% increase from $1.57 billion for the third quarter last year.

Operating cash flow for the quarter was $3.06 billion, and property and equipment additions were $195 million. Free cash flow, defined as operating cash flow net of property and equipment additions, was $2.87 billion. For the same period last year, operating cash flow was $2.40 billion; property and equipment additions were $158 million; and free cash flow was $2.24 billion.

Days services outstanding, or DSOs, were 44 days at May 31, 2022, compared with 38 days at Aug. 31, 2021 and 36 days at May 31, 2021.

Accenture’s total cash balance at May 31, 2022 was $6.70 billion, compared with $8.17 billion at Aug. 31, 2021.

New bookings for the third quarter were $17.0 billion, an increase of 10% in U.S. dollars and 15% in local currency from the third quarter last year.

  • Consulting new bookings were $9.1 billion, or 54% of total new bookings.
  • Outsourcing new bookings were $7.8 billion, or 46% of total new bookings.

Revenues by Geographic Market

Revenues by geographic market were as follows:

  • North America: $7.61 billion, an increase of 23% in both U.S. dollars and in local currency compared with the third quarter of fiscal 2021.
  • Europe: $5.35 billion, an increase of 20% in U.S. dollars and 30% in local currency compared with the third quarter of fiscal 2021.
  • Growth Markets: $3.19 billion, an increase of 22% in U.S. dollars and 30% in local currency compared with the third quarter of fiscal 2021.

Revenues by Industry Group

Revenues by industry group were as follows:

  • Communications, Media & Technology: $3.43 billion, an increase of 27% in U.S. dollars and 31% in local currency compared with the third quarter of fiscal 2021.
  • Financial Services: $3.08 billion, an increase of 19% in U.S. dollars and 24% in local currency compared with the third quarter of fiscal 2021.
  • Health & Public Service: $2.92 billion, an increase of 16% in U.S. dollars and 19% in local currency compared with the third quarter of fiscal 2021.
  • Products: $4.60 billion, an increase of 25% in U.S. dollars and 31% in local currency compared with the third quarter of fiscal 2021.
  • Resources: $2.13 billion, an increase of 21% in U.S. dollars and 26% in local currency compared with the third quarter of fiscal 2021.

Returning Cash to Shareholders

Accenture continues to return cash to shareholders through cash dividends and share repurchases.

On May 13, 2022, a quarterly cash dividend of $0.97 per share was paid to shareholders of record at the close of business on April 14, 2022. These cash dividend payments totaled $614 million, bringing dividend payments for the year to date to $1.84 billion.

Accenture plc has declared another quarterly cash dividend of $0.97 per share for shareholders of record at the close of business on July 14, 2022. This dividend, which is payable on Aug. 15, represents a 10% increase over the quarterly dividend rate of $0.88 per share in fiscal 2021.

Share Repurchase Activity

During the third quarter of fiscal 2022, Accenture repurchased or redeemed 3.1 million shares for a total of $972 million, including approximately 2.9 million shares repurchased in the open market. This brings Accenture’s total share repurchases and redemptions for the first three quarters of fiscal 2022 to 10.1 million shares for a total of $3.51 billion, including approximately 7.7 million shares repurchased in the open market.

Accenture’s total remaining share repurchase authority at May 31, 2022 was approximately $3.7 billion.

At May 31, 2022, Accenture had approximately 633 million total shares outstanding.

Fourth Quarter Fiscal 2022

Accenture expects revenues for the fourth quarter of fiscal 2022 to be in the range of $15.0 billion to $15.5 billion, 20% to 24% growth in local currency, reflecting the company’s assumption of a negative 8% foreign-exchange impact compared with the fourth quarter of fiscal 2021.

Accenture’s business outlook for the full 2022 fiscal year now assumes that the foreign-exchange impact on its results in U.S. dollars will be approximately negative 4.5% compared with fiscal 2021; the company previously expected a negative 3% foreign-exchange impact.

For fiscal 2022, the company now expects revenue growth to be in the range of 25.5% to 26.5% in local currency, compared with 24% to 26% previously.

Accenture continues to expect operating margin for the full fiscal year to be 15.2%, an expansion of 10 basis points from fiscal 2021.

The company now expects its annual effective tax rate to be in the range of 23.5% to 24.5%, compared with 23% to 25% previously.

The company now expects diluted EPS to be in the range of $10.61 to $10.70, an increase of 21% to 22% over adjusted FY21 diluted EPS of $8.80—which exclude gains on an investment of $0.36 from FY21 GAAP diluted EPS of $9.16. The company previously expected fiscal 2022 diluted EPS to be in the range of $10.61 to $10.81.

For fiscal 2022, the company continues to expect operating cash flow to be in the range of $8.7 billion to $9.2 billion; continues to expect property and equipment additions to be $700 million; and continues to expect free cash flow to be in the range of $8.0 billion to $8.5 billion.

The company continues to expect to return at least $6.5 billion in cash to shareholders through dividends and share repurchases.

Accenture’s goal is to create 360° value for our clients, people, shareholders, partners, and communities. To enhance transparency and provide a comprehensive view for all stakeholders, we have combined our financial and environmental, social and governance (ESG) reporting into a digital-first experience. To access our goals, progress and performance, please visit the Accenture 360° Value Reporting Experience ( Accenture.com/reportingexperience ).

Conference Call and Webcast Details

Accenture will host a conference call at 8:00 a.m. EDT today to discuss its third-quarter financial results. To participate, please dial +1 (877) 692-8955 [+1 (234) 720-6979 outside the United States, Puerto Rico and Canada] and enter access code 6450548 approximately 15 minutes before the scheduled start of the call. The conference call will also be accessible live on the Investor Relations section of the Accenture Web site at accenture.com.

A replay of the conference call will be available online at accenture.com beginning at 11:00 a.m. EDT today, June 23, and continuing through Wednesday, Sept. 21, 2022. The replay will also be available via telephone by dialing +1 (866) 207-1041 [+1 (402) 970-0847 outside the United States, Puerto Rico and Canada] and entering access code 6873244 from 11:00 a.m. EDT Thursday, June 23 through Wednesday, Sept. 21, 2022.

Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Technology and Operations services and Accenture Song—all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 710,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at accenture.com.

Non-GAAP Financial Information

This news release includes certain non-GAAP financial information as defined by Securities and Exchange Commission Regulation G. Pursuant to the requirements of this regulation, reconciliations of this non-GAAP financial information to Accenture’s financial statements as prepared under generally accepted accounting principles (GAAP) are included in this press release. Financial results “in local currency” are calculated by restating current-period activity into U.S. dollars using the comparable prior-year period’s foreign-currency exchange rates. Accenture’s management believes providing investors with this information gives additional insights into Accenture’s results of operations. While Accenture’s management believes that the non-GAAP financial measures herein are useful in evaluating Accenture’s operations, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP. Accenture provides full-year revenue guidance on a local-currency basis and not in U.S. dollars because the impact of foreign exchange rate fluctuations could vary significantly from the company’s stated assumptions.

Forward-Looking Statements

Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These risks include, without limitation, risks that: Accenture’s results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and political conditions, including the invasion of Ukraine by Russia, the related sanctions and other measures that have been and continue to be imposed in response to this conflict, as well as the current inflationary environment, and the effects of these conditions on the company’s clients’ businesses and levels of business activity; Accenture faces legal, reputational and financial risks from any failure to protect client and/or company data from security incidents or cyberattacks; Accenture’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions including through the adaptation and expansion of its services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect the company’s results of operations; if Accenture is unable to match people and skills with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; the COVID-19 pandemic has impacted Accenture’s business and operations, and the extent to which it will continue to do so and its impact on the company’s future financial results are uncertain; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; if Accenture does not successfully manage and develop its relationships with key alliance partners or fails to anticipate and establish new alliances in new technologies, the company’s results of operations could be adversely affected; Accenture’s profitability could materially suffer if the company is unable to obtain favorable pricing for its services and solutions, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies or fail to satisfy certain agreed-upon targets or specific service levels; changes in Accenture’s level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company’s effective tax rate, results of operations, cash flows and financial condition; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; changes to accounting standards or in the estimates and assumptions Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; Accenture might be unable to access additional capital on favorable terms or at all and if the company raises equity capital, it may dilute its shareholders’ ownership interest in the company; as a result of Accenture’s geographically diverse operations and its growth strategy to continue to expand in its key markets around the world, the company is more susceptible to certain risks; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s global operations expose the company to numerous and sometimes conflicting legal and regulatory requirements; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; if Accenture is unable to protect or enforce its intellectual property rights or if Accenture’s services or solutions infringe upon the intellectual property rights of others or the company loses its ability to utilize the intellectual property of others, its business could be adversely affected; Accenture’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; Accenture may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent Annual Report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.

Accenture plc
Consolidated Income Statements
(In thousands of U.S. dollars, except share and per share amounts)
(Unaudited)
 

 

 

Three Months Ended

 

Nine Months Ended

 

 

May 31, 2022

 

% of
Revenues

 

 

May 31, 2021

 

% of
Revenues

 

May 31, 2022

 

% of
Revenues

 

May 31, 2021

 

 

% of
Revenues

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

16,158,803

 

 

100.0

%

 

$

13,263,795

 

 

100.0

%

 

$

46,170,649

 

 

100.0

%

 

$

37,114,105

 

 

100.0

%

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of services

 

 

10,844,069

 

 

67.1

%

 

 

8,859,411

 

 

66.8

%

 

 

31,415,167

 

 

68.0

%

 

 

25,216,193

 

 

67.9

%

Sales and marketing

 

 

1,660,919

 

 

10.3

%

 

 

1,406,606

 

 

10.6

%

 

 

4,530,158

 

 

9.8

%

 

 

3,773,268

 

 

10.2

%

General and administrative costs

 

 

1,050,697

 

 

6.5

%

 

 

879,122

 

 

6.6

%

 

 

3,126,332

 

 

6.8

%

 

 

2,461,804

 

 

6.6

%

Total operating expenses

 

 

13,555,685

 

 

 

 

 

11,145,139

 

 

 

 

 

39,071,657

 

 

 

 

 

31,451,265

 

 

 

OPERATING INCOME

 

 

2,603,118

 

 

16.1

%

 

 

2,118,656

 

 

16.0

%

 

 

7,098,992

 

 

15.4

%

 

 

5,662,840

 

 

15.3

%

Interest income

 

 

8,727

 

 

 

 

 

4,551

 

 

 

 

 

22,046

 

 

 

 

 

23,643

 

 

 

Interest expense

 

 

(12,050

)

 

 

 

 

(28,739

)

 

 

 

 

(34,449

)

 

 

 

 

(46,515

)

 

 

Other income (expense), net

 

 

(8,877

)

 

 

 

 

(467

)

 

 

 

 

(39,089

)

 

 

 

 

203,343

 

 

 

Loss on disposition of Russia business

 

 

(96,294

)

 

 

 

 

 

 

 

 

 

(96,294

)

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

2,494,624

 

 

15.4

%

 

 

2,094,001

 

 

15.8

%

 

 

6,951,206

 

 

15.1

%

 

 

5,843,311

 

 

15.7

%

Income tax expense

 

 

675,308

 

 

 

 

 

524,429

 

 

 

 

 

1,654,631

 

 

 

 

 

1,290,189

 

 

 

NET INCOME

 

 

1,819,316

 

 

11.3

%

 

 

1,569,572

 

 

11.8

%

 

 

5,296,575

 

 

11.5

%

 

 

4,553,122

 

 

12.3

%

Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc.

 

 

(1,902

)

 

 

 

 

(1,699

)

 

 

 

 

(5,578

)

 

 

 

 

(5,001

)

 

 

Net income attributable to noncontrolling interests – other (1)

 

 

(31,339

)

 

 

 

 

(18,447

)

 

 

 

 

(78,956

)

 

 

 

 

(57,560

)

 

 

NET INCOME ATTRIBUTABLE TO ACCENTURE PLC

 

$

1,786,075

 

 

11.1

%

 

$

1,549,426

 

 

11.7

%

 

$

5,212,041

 

 

11.3

%

 

$

4,490,561

 

 

12.1

%

CALCULATION OF EARNINGS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Accenture plc

 

$

1,786,075

 

 

 

 

$

1,549,426

 

 

 

 

$

5,212,041

 

 

 

 

$

4,490,561

 

 

 

Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. (2)

 

 

1,902

 

 

 

 

 

1,699

 

 

 

 

 

5,578

 

 

 

 

 

5,001

 

 

 

Net income for diluted earnings per share calculation

 

$

1,787,977

 

 

 

 

$

1,551,125

 

 

 

 

$

5,217,619

 

 

 

 

$

4,495,562

 

 

 

EARNINGS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

2.82

 

 

 

 

$

2.44

 

 

 

 

$

8.23

 

 

 

 

$

7.07

 

 

 

Diluted

 

$

2.79

 

 

 

 

$

2.40

 

 

 

 

$

8.11

 

 

 

 

$

6.96

 

 

 

WEIGHTED AVERAGE SHARES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

632,749,442

 

 

 

 

 

635,203,753

 

 

 

 

 

632,969,487

 

 

 

 

 

635,151,632

 

 

 

Diluted

 

 

641,004,741

 

 

 

 

 

645,454,021

 

 

 

 

 

643,692,440

 

 

 

 

 

646,244,001

 

 

 

Cash dividends per share

 

$

0.97

 

 

 

 

$

0.88

 

 

 

 

$

2.91

 

 

 

 

$

2.64

 

 

 

(1)

Comprised primarily of noncontrolling interest attributable to the noncontrolling shareholders of Avanade, Inc.

(2)

Diluted earnings per share assumes the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis. The income effect does not take into account “Net income attributable to noncontrolling interests — other,” since those shares are not redeemable or exchangeable for Accenture plc Class A ordinary shares.

Accenture plc

Summary of Revenues

(In thousands of U.S. dollars)

(Unaudited)

 

 

 

Three Months Ended

 

Percent
Increase
U.S.
Dollars

 

Percent
Increase
Local
Currency

 

 

May 31, 2022

 

May 31, 2021

 

 

GEOGRAPHIC MARKETS

 

 

 

 

 

 

 

 

North America

 

$

7,613,629

 

$

6,199,583

 

23

%

 

23

%

Europe

 

 

5,350,360

 

 

4,452,360

 

20

 

 

30

 

Growth Markets

 

 

3,194,814

 

 

2,611,852

 

22

 

 

30

 

Total Revenues

 

$

16,158,803

 

$

13,263,795

 

22

%

 

27

%

INDUSTRY GROUPS

 

 

 

 

 

 

 

 

Communications, Media & Technology

 

$

3,427,232

 

$

2,704,260

 

27

%

 

31

%

Financial Services

 

 

3,079,418

 

 

2,597,532

 

19

 

 

24

 

Health & Public Service

 

 

2,917,028

 

 

2,519,591

 

16

 

 

19

 

Products

 

 

4,601,473

 

 

3,673,963

 

25

 

 

31

 

Resources

 

 

2,133,652

 

 

1,768,449

 

21

 

 

26

 

Total Revenues

 

$

16,158,803

 

$

13,263,795

 

22

%

 

27

%

TYPE OF WORK

 

 

 

 

 

 

 

 

Consulting

 

$

9,032,484

 

$

7,260,428

 

24

%

 

30

%

Outsourcing

 

 

7,126,319

 

 

6,003,367

 

19

 

 

23

 

Total Revenues

 

$

16,158,803

 

$

13,263,795

 

22

%

 

27

%

 
 

 

 

Nine Months Ended

 

Percent
Increase
U.S.
Dollars

 

Percent
Increase
Local
Currency

 

 

May 31, 2022

 

May 31, 2021

 

 

GEOGRAPHIC MARKETS

 

 

 

 

 

 

 

 

North America

 

$

21,597,880

 

$

17,312,514

 

25

%

 

25

%

Europe

 

 

15,460,313

 

 

12,449,811

 

24

 

 

30

 

Growth Markets

 

 

9,112,456

 

 

7,351,780

 

24

 

 

30

 

Total Revenues

 

$

46,170,649

 

$

37,114,105

 

24

%

 

27

%

INDUSTRY GROUPS

 

 

 

 

 

 

 

 

Communications, Media & Technology

 

$

9,703,579

 

$

7,518,074

 

29

%

 

32

%

Financial Services

 

 

8,869,296

 

 

7,321,378

 

21

 

 

25

 

Health & Public Service

 

 

8,333,915

 

 

6,993,381

 

19

 

 

21

 

Products

 

 

13,212,255

 

 

10,220,982

 

29

 

 

33

 

Resources

 

 

6,051,604

 

 

5,060,290

 

20

 

 

23

 

Total Revenues

 

$

46,170,649

 

$

37,114,105

 

24

%

 

27

%

TYPE OF WORK

 

 

 

 

 

 

 

 

Consulting

 

$

25,747,095

 

$

20,032,392

 

29

%

 

32

%

Outsourcing

 

 

20,423,554

 

 

17,081,713

 

20

 

 

22

 

Total Revenues

 

$

46,170,649

 

$

37,114,105

 

24

%

 

27

%

 
 
Accenture plc
Operating Income by Geographic Market

(In thousands of U.S. dollars)

(Unaudited)

 

 

Three Months Ended

 

 

 

May 31, 2022

 

May 31, 2021

 

 

 

Operating
Income

 

Operating
Margin

 

Operating
Income

 

Operating
Margin

 

Increase

North America

$

1,379,828

 

18

%

 

$

1,128,352

 

18

%

 

$

251,476

Europe

 

693,512

 

13

 

 

 

607,858

 

14

 

 

 

85,654

Growth Markets

 

529,778

 

17

 

 

 

382,446

 

15

 

 

 

147,332

Total Operating Income

$

2,603,118

 

16.1

%

 

$

2,118,656

 

16.0

%

 

$

484,462

 

Nine Months Ended

 

 

 

May 31, 2022

 

May 31, 2021

 

 

 

Operating
Income

 

Operating
Margin

 

Operating
Income

 

Operating
Margin

 

Increase

North America

$

3,715,155

 

17

%

 

$

2,789,305

 

16

%

 

$

925,850

Europe

 

1,969,997

 

13

 

 

 

1,740,221

 

14

 

 

 

229,776

Growth Markets

 

1,413,840

 

16

 

 

 

1,133,314

 

15

 

 

 

280,526

Total Operating Income

$

7,098,992

 

15.4

%

 

$

5,662,840

 

15.3

%

 

$

1,436,152

 
 
Accenture plc
Reconciliation of Net Income and Diluted Earnings Per Share, as Reported (GAAP), to Net Income and Diluted Earnings Per Share, as Adjusted (Non-GAAP)

(In thousands of U.S. dollars, except per share amounts)

(Unaudited)

 

 

Nine Months Ended

 

May 31, 2022

 

May 31, 2021

 

As Reported
(GAAP)

 

As Reported
(GAAP)

Investment
Gains (1)

 

Adjusted
(Non-GAAP)

Income before income taxes

$

6,951,206

 

 

$

5,843,311

 

$

(271,009

)

 

$

5,572,302

 

Income tax expense

 

1,654,631

 

 

 

1,290,189

 

 

(41,440

)

 

 

1,248,749

 

Net Income

$

5,296,575

 

 

$

4,553,122

 

$

(229,569

)

 

$

4,323,553

 

Effective tax rate

 

23.8

%

 

 

22.1

%

 

 

 

22.4

%

Diluted earnings per share

$

8.11

 

 

$

6.96

 

$

(0.36

)

 

$

6.60

 

Amounts in table may not total due to rounding.

(1)

Represents gains related to our investment in Duck Creek Technologies.

Accenture plc

Consolidated Balance Sheets

(In thousands of U.S. dollars)

 

 

 

May 31, 2022

 

August 31, 2021

ASSETS

 

(Unaudited)

 

 

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

 

$

6,703,568

 

$

8,168,174

Short-term investments

 

 

4,322

 

 

4,294

Receivables and contract assets

 

 

12,219,074

 

 

9,728,212

Other current assets

 

 

2,080,776

 

 

1,765,831

Total current assets

 

 

21,007,740

 

 

19,666,511

NON-CURRENT ASSETS:

 

 

 

 

Contract assets

 

 

35,714

 

 

38,334

Investments

 

 

331,503

 

 

329,526

Property and equipment, net

 

 

1,665,478

 

 

1,639,105

Lease assets

 

 

3,178,636

 

 

3,182,519

Goodwill

 

 

12,499,443

 

 

11,125,861

Other non-current assets

 

 

7,376,684

 

 

7,193,987

Total non-current assets

 

 

25,087,458

 

 

23,509,332

TOTAL ASSETS

 

$

46,095,198

 

$

43,175,843

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Current portion of long-term debt and bank borrowings

 

$

8,768

 

$

12,080

Accounts payable

 

 

2,384,352

 

 

2,274,057

Deferred revenues

 

 

4,561,147

 

 

4,229,177

Accrued payroll and related benefits

 

 

7,047,124

 

 

6,747,853

Lease liabilities

 

 

733,805

 

 

744,164

Other accrued liabilities

 

 

1,827,396

 

 

1,701,536

Total current liabilities

 

 

16,562,592

 

 

15,708,867

NON-CURRENT LIABILITIES:

 

 

 

 

Long-term debt

 

 

51,546

 

 

53,473

Lease liabilities

 

 

2,694,489

 

 

2,696,917

Other non-current liabilities

 

 

4,774,848

 

 

4,619,472

Total non-current liabilities

 

 

7,520,883

 

 

7,369,862

Total Accenture plc shareholders’ equity

 

 

21,389,094

 

 

19,529,454

Noncontrolling interests

 

 

622,629

 

 

567,660

Total shareholders’ equity

 

 

22,011,723

 

 

20,097,114

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

46,095,198

 

$

43,175,843

 
 
Accenture plc
Consolidated Cash Flows Statements
(In thousands of U.S. dollars)

(Unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

May 31, 2022

 

May 31, 2021

 

May 31, 2022

 

May 31, 2021

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net income

 

$

1,819,316

 

 

$

1,569,572

 

 

$

5,296,575

 

 

$

4,553,122

 

Depreciation, amortization and other

 

 

524,186

 

 

 

478,986

 

 

 

1,553,311

 

 

 

1,404,961

 

Share-based compensation expense

 

 

407,257

 

 

 

331,038

 

 

 

1,319,555

 

 

 

1,067,251

 

Change in assets and liabilities/other, net

 

 

313,896

 

 

 

21,554

 

 

 

(2,418,422

)

 

 

(486,618

)

Net cash provided by (used in) operating activities

 

 

3,064,655

 

 

 

2,401,150

 

 

 

5,751,019

 

 

 

6,538,716

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(194,616

)

 

 

(158,212

)

 

 

(540,947

)

 

 

(343,837

)

Purchases of businesses and investments, net of cash acquired

 

 

(363,614

)

 

 

(429,237

)

 

 

(2,212,388

)

 

 

(1,544,412

)

Proceeds from the sale of businesses and investments, net of cash transferred

 

 

(111,660

)

 

 

(314

)

 

 

(108,099

)

 

 

409,828

 

Other investing, net

 

 

2,936

 

 

 

15,075

 

 

 

9,397

 

 

 

19,971

 

Net cash provided by (used in) investing activities

 

 

(666,954

)

 

 

(572,688

)

 

 

(2,852,037

)

 

 

(1,458,450

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Proceeds from issuance of ordinary shares

 

 

497,974

 

 

 

392,478

 

 

 

1,199,851

 

 

 

939,564

 

Purchases of shares

 

 

(972,171

)

 

 

(834,995

)

 

 

(3,510,891

)

 

 

(2,788,476

)

Cash dividends paid

 

 

(613,785

)

 

 

(559,070

)

 

 

(1,843,576

)

 

 

(1,678,164

)

Other financing, net

 

 

(15,457

)

 

 

(10,781

)

 

 

(54,998

)

 

 

(31,476

)

Net cash provided by (used in) financing activities

 

 

(1,103,439

)

 

 

(1,012,368

)

 

 

(4,209,614

)

 

 

(3,558,552

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(56,810

)

 

 

26,708

 

 

 

(153,974

)

 

 

72,336

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

1,237,452

 

 

 

842,802

 

 

 

(1,464,606

)

 

 

1,594,050

 

CASH AND CASH EQUIVALENTS, beginning of period

 

 

5,466,116

 

 

 

9,166,578

 

 

 

8,168,174

 

 

 

8,415,330

 

CASH AND CASH EQUIVALENTS, end of period

 

$

6,703,568

 

 

$

10,009,380

 

 

$

6,703,568

 

 

$

10,009,380

 

 

 

 

 

 

 

 

 

 

Accenture Media Relations

Accenture Investor Relations

KEYWORD: NEW YORK UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES SECURITY OTHER PROFESSIONAL SERVICES TECHNOLOGY FINANCE NETWORKS BANKING

Copyright Business Wire 2022.

PUB: 06/23/2022 06:44 AM/DISC: 06/23/2022 06:44 AM



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