Accenture, my former company, has recently announced a very solid Q1 2008-09 (September to November 2008) results. This is done, despite the current weakening economic situation.
Full quotation of it is from here
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Accenture announces strong results
Wednesday, 24 December 2008 14:49
Accenture (NYSE:ACN) has reported strong financial results for the first quarter of fiscal 2009, ended Nov. 30, 2008, with net revenues of $6.02 billion, an increase of 6 percent in U.S. dollars and 9 percent in local currency over the same period last year.
Economy News, DEC 24:
Global management consulting, technology services and outsourcing company Accenture - NYSE: ACN - has announced strong financial results for the first quarter of 2009.
Diluted earnings per share were $0.74, an increase of 24 percent.
Operating income grew 12 percent, to $815 million, and operating margin expanded 70 basis points, to 13.5 percent.
New bookings for the quarter were $5.80 billion, with consulting bookings of $3.56 billion and outsourcing bookings of $2.24 billion.
William D. Green, Accenture’s chairman & CEO, said, “We’re very pleased with our strong first-quarter performance, especially given the macro-economic environment. Demand patterns are changing but remain very active and positive looking forward. We drove revenue growth right to the bottom line, expanding operating margin by 70 basis points and delivering outstanding earnings per share. We also generated significant cash flow, and our balance sheet continues to be exceptionally strong.
Financial Review
Revenues before reimbursements (“net revenues”) for the first quarter of fiscal 2009 were $6.02 billion, compared with $5.67 billion in the first quarter of fiscal 2008, an increase of 6 percent in U.S. dollars and 9 percent in local currency. Net revenues for the first quarter of fiscal 2009 reflect a foreign-exchange impact of negative 3 percent, greater than the negative 1 percent to positive 1 percent impact the company had previously assumed. Adjusting for the actual foreign-exchange impact in the first quarter, the company’s previously expected net revenue range for the quarter would have been $5.9 billion to $6.2 billion. Therefore, Accenture’s first-quarter fiscal 2009 net revenues of $6.02 billion were solidly within the
expected range.
Breakdown:
• Consulting net revenues for the quarter were $3.66 billion, an increase of 6 percent in U.S. dollars and 9 percent in local currency over the first quarter of fiscal 2008.
• Outsourcing net revenues were $2.36 billion, an increase of 7 percent in U.S. dollars and 9 percent in local currency over the first quarter of fiscal 2008.
Diluted EPS for the quarter were $0.74, compared with $0.60 in the first quarter of fiscal 2008, an increase of $0.14, or 24 percent.
• The EPS increase reflects $0.20, or 33 percent growth, from the company’s strong
performance, broken down as:
– $0.08, or 13 percent growth, from strong growth in revenue and operating income in local currency;
– $0.08 from a lower effective income tax rate and non-recurring final determinations of prior-year tax liabilities; and
– $0.04 from a lower share count.
• This was partially offset by ($0.04) from non-operating items, including lower interest income, and ($0.02) from unfavorable foreign-exchange rates in the first quarter of fiscal 2009 compared with the same period last year.
Operating income for the first quarter increased 12 percent, to $815 million, or 13.5 percent of net revenues, compared with $726 million, or 12.8 percent of net revenues, for the first quarter of fiscal 2008, an operating-margin expansion of 70 basis points.
Gross margin (gross profit as a percentage of net revenues) was 31.4 percent, compared with 30.1 percent for the first quarter last year, an expansion of 130 basis points.
Selling, general and administrative (SG&A) expenses for the first quarter were $1.07 billion, or 17.8 percent of net revenues, compared with $970 million, or 17.1 percent of net revenues, for the first quarter last year. SG&A expenses in the first quarter of fiscal 2009 include a $72 million provision for bad debt as a reserve for collection risks, given current economic conditions. Absent this provision, SG&A expenses as a percent of net revenues would have been 16.6 percent.
The company’s effective tax rate for the first quarter was 26.6 percent, compared with 34.6 percent for the first quarter last year. The reduction was primarily a result of benefits related to tax-rate reductions taking effect in fiscal 2009 and final determinations of prior-year tax liabilities recorded in the first quarter of fiscal 2009.
Income before minority interest for the first quarter was $593 million, compared with $506 million for the same period of fiscal 2008, an increase of 17 percent.
Operating cash flow for the first quarter was $468 million, an increase of $499 million over the same period last year, and property and equipment additions were $72 million. Free cash flow, defined as operating cash flow net of property and equipment additions, was $396 million.
For the same period last fiscal year, operating cash flow was negative $31 million; property and equipment additions were $89 million; and free cash flow was negative $120 million.
Accenture’s total cash balance at Nov. 30, 2008 was $2.78 billion, compared with $3.60 billion at Aug. 31, 2008.
The difference reflects share repurchases and annual dividend payments in the
first quarter of fiscal 2009, as well as a $300 million reduction due to foreign-exchange translations on the cash balances the company holds around the world, partially offset by strong operating cash flow.
Days services outstanding, or DSOs, were 36 at Nov. 30, 2008, compared with 37 at Aug. 31, 2008.
Utilisation for the first quarter of fiscal 2009 was 83 percent, consistent with the first quarter last year.
Attrition was 13 percent, compared with 17 percent in the same period last year.
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