Operating income for the quarter increased 7 percent, to $1.05 billion, or 14.5 percent of net revenues, compared with $981 million, or 13.9 percent of net revenues, for the first quarter of fiscal 2012. The operating margin expansion of more than 60 basis points reflects improvements in contract profitability and overall cost management compared with the first quarter last year.
The company’s effective tax rate for the quarter was 26.8 percent, compared with 28.3 percent for the first quarter last year. The lower rate in the first quarter of fiscal 2013 was primarily due to higher benefits related to final determinations of prior-year tax liabilities.
Net income for the quarter was $766 million, compared with $712 million for the first quarter last year, an 8 percent increase.
Operating cash flow for the quarter was negative $109 million, and property and equipment additions were $87 million. Free cash flow, defined as operating cash flow net of property and equipment additions, was negative $195 million. Operating cash flow and free cash flow for the first quarter of fiscal 2013 include a discretionary cash contribution of $500 million the company made to its U.S. defined benefit pension plan, which had a net impact, after tax, of $350 million. For the same period last year, operating cash flow was $475 million; property and equipment additions were $81 million; and free cash flow was $394 million.Days services outstanding, or DSOs, were 32 days at Nov. 30, 2012, compared with 27 days at Aug. 31, 2012 and 32 days at Nov. 30, 2011. Accenture’s total cash balance at Nov. 30, 2012 was $5.7 billion, compared with $6.6 billion at Aug. 31, 2012. Utilization for the quarter was 88 percent, compared with 87 percent for the fourth quarter of fiscal 2012 and 87 percent for the first quarter of fiscal 2012. Attrition for the first quarter of fiscal 2013 was 11 percent, compared with 12 percent for the fourth quarter of fiscal 2012 and 12 percent for the first quarter of fiscal 2012.