Accenture Reports First-Quarter Fiscal 2013 Results, With Record Quarterly Revenues And EPS

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 include, without limitation, risks that: the company’s results of operations could be adversely affected by volatile, negative or uncertain economic conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; the company’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions, and a significant reduction in such demand could materially affect the company’s results of operations; if the company is unable to keep its supply of skills and resources in balance 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 markets in which the company competes are highly competitive, and the company might not be able to compete effectively; the company could have liability or the company’s reputation could be damaged if the company fails to protect client and/or company data or information systems as obligated by law or contract or if the company’s information systems are breached; as a result of the company’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; the company’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; the company’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; the company’s results of operations could materially suffer if the company is not able to obtain sufficient pricing to enable it to meet its profitability expectations; if the company’s pricing estimates do not accurately anticipate the cost, risk and complexity of the company performing its work or third parties upon whom it relies do not meet their commitments, then the company’s contracts could have delivery inefficiencies and be unprofitable; the company’s work with government clients exposes the company to additional risks inherent in the government contracting environment; the company’s business could be materially adversely affected if the company incurs legal liability in connection with providing its services and solutions; the company’s results of operations and ability to grow could be materially negatively affected if the company cannot adapt and expand its services and solutions in response to ongoing changes in technology and offerings by new entrants; the company’s alliance relationships may not be successful or may change, which could adversely affect the company’s results of operations; outsourcing services and the continued expansion of the company’s other services and solutions into new areas subject the company to different operational risks than its consulting and systems integration services; the company’s services or solutions could infringe upon the intellectual property rights of others or the company might lose its ability to utilize the intellectual property of others; the company has only a limited ability to protect its intellectual property rights, which are important to the company’s success; the company’s ability to attract and retain business and employees may depend on its reputation in the marketplace; the company might not be successful at identifying, acquiring or integrating businesses or entering into joint ventures; the company’s profitability could suffer if its cost-management strategies are unsuccessful, and the company may not be able to improve its profitability through improvements to cost-management to the degree it has done in the past; many of the company’s contracts include payments that link some of its fees to the attainment of performance or business targets and/or require the company to meet specific service levels, which could increase the variability of the company’s revenues and impact its margins; changes in the company’s level of taxes, and audits, investigations and tax proceedings, or changes in the company’s treatment as an Irish company, could have a material adverse effect on the company’s results of operations and financial condition; if the company is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; if the company is unable to collect its receivables or unbilled services, the company’s results of operations, financial condition and cash flows could be adversely affected; the company’s share price and results of operations could fluctuate and be difficult to predict; the company’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; the company 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 November 30,
					2012					% of Net Revenues				2011					% of Net Revenues
REVENUES:
Revenues before reimbursements ("Net revenues")					$	7,219,961				100	%			$	7,074,497				100	%
Reimbursements						448,075									514,611
Revenues						7,668,036									7,589,108
OPERATING EXPENSES:
Cost of services:
Cost of services before reimbursable expenses						4,853,768				67.2	%				4,822,957				68.2	%
Reimbursable expenses						448,075									514,611
Cost of services						5,301,843									5,337,568
Sales and marketing						868,202				12.0	%				837,477				11.8	%
General and administrative costs						448,852				6.2	%				432,517				6.1	%
Reorganization costs, net						465									408
Total operating expenses						6,619,362									6,607,970
OPERATING INCOME						1,048,674				14.5	%				981,138				13.9	%
Interest income						8,767									10,512
Interest expense						(4,549	)								(4,158	)
Other (expense) income, net						(6,436	)								5,535
INCOME BEFORE INCOME TAXES						1,046,456				14.5	%				993,027				14.0	%
Provision for income taxes						280,425									281,270
NET INCOME						766,031				10.6	%				711,757				10.1	%
Net income attributable to noncontrolling interests    in Accenture SCA and Accenture Canada Holdings Inc.						(58,955	)								(61,956	)
Net income attributable to noncontrolling interests – other (1)						(8,259	)								(7,715	)
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC					$	698,817				9.7	%			$	642,086				9.1	%
CALCULATION OF EARNINGS PER SHARE:
Net income attributable to Accenture plc					$	698,817								$	642,086
Net income attributable to noncontrolling interests    in Accenture SCA and Accenture Canada Holdings Inc. (2)						58,955									61,956
Net income for diluted earnings per share calculation					$	757,772								$	704,042
EARNINGS PER SHARE:
- Basic					$	1.09								$	1.00
- Diluted (3)					$	1.06								$	0.96
WEIGHTED AVERAGE SHARES:
- Basic						639,659,238									644,285,298
- Diluted (3)						716,368,102									730,745,055
Cash dividends per share					$	0.81								$	0.675
_________________
(1) Comprised primarily of noncontrolling interest attributable to the noncontrolling shareholders of Avanade, Inc.
(2) Diluted earnings per share assumes the redemption of all Accenture SCA Class I common shares owned by holders of noncontrolling interests and the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis.
(3) Diluted weighted average Accenture plc Class A ordinary shares and earnings per share amounts in fiscal 2012 have been restated to reflect additional restricted share units issued to holders of restricted share units in connection with the fiscal 2013 payment of cash dividends.

ACCENTURE PLC
SUMMARY OF REVENUES
(In thousands of U.S. dollars)
(Unaudited)
																												Percent Increase (Decrease) Local Currency
																							Percent Increase (Decrease) U.S. Dollars
														Three Months Ended November 30,
														2012					2011
OPERATING GROUPS
Communications, Media & Technology														$	1,458,786				$	1,535,186			(5	%)					(1	%)
Financial Services															1,562,942					1,483,839			5						9
Health & Public Service															1,174,710					1,054,302			11						13
Products															1,698,543					1,669,553			2						5
Resources															1,321,465					1,326,875			0						3
Other															3,515					4,742			n/m						n/m
TOTAL Net Revenues															7,219,961					7,074,497			2	%					5	%
Reimbursements															448,075					514,611			(13	)
TOTAL REVENUES														$	7,668,036				$	7,589,108			1	%
GEOGRAPHY
Americas														$	3,333,120				$	3,074,717			8	%					10	%
EMEA															2,824,896					3,008,528			(6	)					0
Asia Pacific															1,061,945					991,252			7						8
TOTAL Net Revenues														$	7,219,961				$	7,074,497			2	%					5	%
TYPE OF WORK
Consulting														$	3,960,676				$	4,083,424			(3	%)					0	%
Outsourcing															3,259,285					2,991,073			9						13
TOTAL Net Revenues														$	7,219,961				$	7,074,497			2	%					5	%
_________________
n/m = not meaningful
OPERATING INCOME BY OPERATING GROUP (OG)
									Three Months Ended November 30,
									2012										2011
OPERATING GROUPS									Operating Income					Operating Margin					Operating Income				Operating Margin					Increase (Decrease)
Communications, Media & Technology									$	183,048					13	%			$	228,527			15	%				$	(45,479	)
Financial Services										241,098					15					214,855			14						26,243
Health & Public Service										143,459					12					112,834			11						30,625
Products										235,692					14					218,775			13						16,917
Resources										245,377					19					206,147			16						39,230
Total									$	1,048,674					14.5	%			$	981,138			13.9	%				$	67,536

ACCENTURE PLC
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
						November 30, 2012				August 31, 2012
						(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents						$	5,678,892			$	6,640,526
Short-term investments							2,349				2,261
Receivables from clients, net							3,501,506				3,080,877
Unbilled services, net							1,487,964				1,399,834
Other current assets							1,342,815				1,464,433
Total current assets							12,013,526				12,587,931
NON-CURRENT ASSETS:
Unbilled services, net							11,121				12,151
Investments							27,902				28,180
Property and equipment, net							799,443				779,494
Other non-current assets							3,556,028				3,257,659
Total non-current assets							4,394,494				4,077,484
TOTAL ASSETS						$	16,408,020			$	16,665,415
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and bank borrowings						$	13			$	11
Accounts payable							890,233				903,847
Deferred revenues							2,127,658				2,275,052
Accrued payroll and related benefits							3,338,958				3,428,838
Other accrued liabilities							1,620,497				1,501,457
Total current liabilities							7,977,359				8,109,205
NON-CURRENT LIABILITIES:
Long-term debt							19				22
Other non-current liabilities							3,436,670				3,931,760
Total non-current liabilities							3,436,689				3,931,782
TOTAL ACCENTURE PLC SHAREHOLDERS' EQUITY							4,506,633				4,145,833
NONCONTROLLING INTERESTS							487,339				478,595
TOTAL SHAREHOLDERS' EQUITY							4,993,972				4,624,428
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY						$	16,408,020			$	16,665,415

ACCENTURE PLC
CONSOLIDATED CASH FLOWS STATEMENTS
(In thousands of U.S. dollars)
(Unaudited)
							Three Months Ended November 30,
							2012					2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income							$	766,031				$	711,757
Depreciation, amortization and asset impairments								139,924					132,625
Share-based compensation expense								114,170					100,558
Change in assets and liabilities/other, net								(1,128,940	)				(469,682	)
Net cash (used in) provided by operating activities								(108,815	)				475,258
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment								(86,547	)				(80,875	)
Purchases of businesses and investments, net of cash acquired								(209,952	)				(160,055	)
Other investing, net								762					1,019
Net cash used in investing activities								(295,737	)				(239,911	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of ordinary shares								164,606					139,947
Purchases of shares								(220,831	)				(285,105	)
Cash dividends paid								(560,135	)				(474,896	)
Other financing, net								38,698					32,437
Net cash used in financing activities								(577,662	)				(587,617	)
Effect of exchange rate changes on cash and cash equivalents								20,580					(256,902	)
NET DECREASE IN CASH AND CASH EQUIVALENTS								(961,634	)				(609,172	)
CASH AND CASH EQUIVALENTS, beginning of period								6,640,526					5,701,078
CASH AND CASH EQUIVALENTS, end of period							$	5,678,892				$	5,091,906

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