Accenture Reports Strong Fourth-Quarter and Year-End Results
-- Fourth-Quarter Revenues and Operating Income Significantly Exceed Expectations; Company Reiterates Comfort with First-Quarter Estimates --
NEW YORK, October 11, 2001 - Accenture (NYSE: ACN) today reported strong results for the fourth quarter and fiscal year ended August 31, 2001, exceeding the company’s previously stated expectations and analysts’ consensus estimates of revenues, operating income and earnings per share.
Revenues before reimbursements ("net revenues") for the year were $11.44 billion, an increase of 17 percent in US dollars and 23 percent in local currency over the prior fiscal year. Net revenues for the fourth quarter were $2.78 billion, an increase of 11 percent in US dollars and 16 percent in local currency over the fourth quarter of the prior year.
Income before minority interest on a pro forma basis for the fiscal year, excluding one-time IPO and other related charges, was $922 million. Income before minority interest on a pro forma basis for the fourth quarter was $104 million, excluding one-time charges. Diluted earnings per share, on the same basis, were $0.91 for the year ($0.81 excluding investment gains) and $0.12 for the fourth quarter.
Excluding one-time charges, operating income on a pro forma basis was $1.45 billion, or 13 percent of net revenues, for the year, and $257 million, or 9 percent of net revenues, for the fourth quarter.
"Our strong performance in the fourth quarter and over the past year is testament to the diversity of our business by both industry and geography and to our commitment to bringing innovation to life for our clients," said Joe W. Forehand, Accenture chairman and CEO. "We significantly exceeded our revenue and operating income targets, which is a notable accomplishment given the current economic environment. With our aggressive focus on both revenue growth and effective cost-management, we believe Accenture is among the best-positioned companies in the services sector."
Contributing to Accenture’s strong fiscal-year performance was double-digit growth in all five of its global market units and in its two largest geographic regions. Net revenues for Accenture’s Government global market unit in fiscal 2001 topped $1 billion for the first time, an increase of 26 percent over fiscal 2000. The Products global market unit reported a 20 percent increase in net revenues, to $2.27 billion. The Resources global market unit reported net revenues for the year of $1.97 billion, a 19 percent increase. The Communications & High Tech global market unit grew net revenues to $3.23 billion, a 15 percent increase over fiscal 2000. The Financial Services global market unit reported net revenues of $2.90 billion, up 14 percent over fiscal 2000.
Accenture’s net revenues in the Americas were $6.18 billion in fiscal 2001, an increase of 17 percent in US dollars and 18 percent in local currency over the prior year. Net revenues in Accenture’s Europe, Middle East, Africa and India (EMEAI) region were $4.44 billion in fiscal 2001, an increase of 20 percent in US dollars and 32 percent in local currency. In the Asia Pacific region, net revenues were $826 million, an increase of 6 percent in US dollars and 17 percent in local currency.
"Our success over the past year was due to many factors, including the dedication of our professionals, who are completely focused on delivering value to clients, and the strength of our client relationships, many of which span more than a decade," said Forehand. "We are also pleased by our clients’ growing interest in business transformation outsourcing - the combination of outsourcing, consulting and other capabilities to improve key business functions and achieve a significant and sustainable improvement in enterprise-level performance."
Accenture’s net revenues derived from outsourcing, which includes business transformation outsourcing, increased 20 percent last year, to $1.98 billion, accounting for more than 17 percent of the company’s net revenues in fiscal 2001.
Accenture stated that it expects to take a one-time charge of no more than $40 million in the first quarter of fiscal 2002 for costs related to the impact of the September 11 tragedy. Even with the charge, the company remains comfortable with first-quarter estimates provided by analysts at the time of the Accenture initial public offering.
About Accenture
Accenture is the world’s leading provider of management and technology consulting services and solutions, with more than 75,000 people in 46 countries delivering a wide range of specialized capabilities and solutions to clients across all industries. Accenture operates globally with one common brand and business model designed to enable the company to serve its clients on a consistent basis around the world. Under its strategy, Accenture is building a network of businesses to meet the full range of any organization’s needs - consulting, technology, outsourcing, alliances and venture capital. Its home page is http://www.accenture.com.
Accenture will host a conference call at 8:00 a.m. EDT today to discuss its fourth-quarter 2001 and year-end financial results. To participate, please dial +1 (800) 230-1085 [+1 (612) 288-0337 International] approximately 15 minutes prior to 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 http://www.accenture.com.
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 International] and entering the passcode 606616 from 2:15 PM (EDT) Thursday, October 11 through Thursday, October 18.
# # #
This press release contains forward-looking statements, 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 include general economic conditions and the factors discussed under the heading "Risk Factors" in our registration statement on Form S-1 filed with the Securities and Exchange Commission.
This is Accenture’s first quarterly earnings announcement as a public company, having completed its initial public offering on July 19, 2001. As a result of the transition from a private partnership to a public company, Accenture is not able to provide meaningful, comparative historical figures, with the exception of revenues, for the full fiscal year and fourth quarter of fiscal 2000.
ACCENTURE LTD
For the Three Months Ended August 31, 2001
(unaudited)
(In thousands of U.S. dollars, except per-share amounts)
Cost of services:
Cost of services before reimbursable expenses
Reimbursable expenses
Cost of services
Sales and marketing
General and administrative costs
Reorganization and rebranding costs
Restricted stock-based compensation
-
1,689,852.
-
428,822.
2,118,674.
446,050.
384,959.
71,381.
967,110.
-
-
-
-
-
-
(71,381)
(967,110)
-
1,689,852.
-
428,822.
2,118,674.
446,050.
384,959.
-
-
Gain on investments, net
Interest income
Interest expense
Other income (expense)
Equity in losses of affiliates
(72,684)
20,165.
(17,863)
(3,820)
(8,563)
-
-
-
-
-
(72,684)
20,165.
(17,863)
(3,820)
(8,563)
$
33,986
- Basic
- Diluted
$(1.25)
$(1.25)
-
-
$0.12
$0.12
- Basic
- Diluted
295,392,338
899,711,420
-
-
295,392,338
899,711,420
Footnotes
Adjustments include one-time charges of rebranding costs of $13 million to rename the organization Accenture; reorganization charges of $58 million to complete the transition to a corporate structure and the initial public offering; $967 million for the one-time grants of restricted share units to partners, former partners and employees; and income taxes on the above plus tax costs of reorganization, which totaled ($13) million. Diluted earnings per share would have been $0.10 if shares outstanding at August 31, 2001, had been outstanding for the full year.
ACCENTURE LTD
CONSOLIDATED STATEMENT OF INCOME
For the Year Ended August 31, 2001
(unaudited)
(In thousands of U.S. dollars, except per-share amounts)
Cost of services before reimbursable
Reimbursable expenses
Cost of services
6,199,213
1,904,152
8,103,365
725,163
-
725,163
6,924,376
1,904,152
8,828,528
Gain on investments, net
Interest income
Interest expense
Other income
Equity in losses of affiliates
107,016
79,778
(43,278)
16,973
(61,388)
-
-
(15,418)
-
-
107,016
79,778
(58,696)
16,973
(61,388)
Basic
Diluted
$ 0.91
\
$ 0.91
Basic
Diluted
412,705,954
\
1,008,163,290
Footnote
Adjustments include one-time items and amounts necessary to present results prior to May 31, 2001, in corporate form as if the reorganization had occurred on September 1, 2000. One-time items include rebranding costs of $144 million to rename the organization; reorganization charges of $705 million to complete the transition to a corporate structure and the initial public offering; $967 million for the one-time grants of restricted share units to partners, former partners and employees; income of $188 million due to the adoption of FAS 133; and the related income tax impact, for a credit of $106 million. These one-time items were disclosed in the pro forma financial information section of the Accenture prospectus and are updated here to include activity for the fourth quarter ended August 31, 2001. Adjustments necessary to present results prior to May 31, 2001, on a corporate basis include $1,059 million for partner compensation and $15 million of interest. In addition, minority interest has been adjusted as if the minority had existed for the full year. Earnings per share is based on the assumption that shares and share equivalents outstanding as of August 31, 2001, were outstanding for the entire year.
ACCENTURE LTD
COMBINED AND CONSOLIDATED BALANCE SHEETS
For the Three Months Ended August 31, 2001
(unaudited)
(In thousands of U.S. dollars, except per-share amounts)
Cash and cash equivalents
Receivables from clients
Unbilled services
Other current assets
$1,270,516.
1,450,555.
682,935.
595,279.
$1,880,083.
1,498,812.
731,802.
468,940.
Investments
Property and equipment, net
Other non-current assets
509,665.
705,508.
236,839.
324,139.
822,318.
335,262.
Short-term debt
Accounts payable
Deferred revenues
Accrued payroll and related benefits
Other accrued liabilities
$194,686.
233,737.
948,390.
700,843.
906,323
.
$190,669.
371,794.
810,043.
1,050,385.
1,748,611.
Long-term debt
Other non-current liabilities
98,865.
-.
1,090.
1,191,332
Shareholders’ equity
Partners’ capital
-
2,368,453.
275,411
-
###
Roxanne Taylor
+1 (917) 452 5106