EX-99.1 2 d788335dex991.htm EX-99.1 EX-99.1
Amdocs Limited
6-K on 08/08/2019   Download
SEC Document
SEC Filing

Exhibit 99.1

 

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Amdocs Limited Reports Third Quarter Fiscal 2019 Results

Record Quarterly Revenue of $1.02 Billion

Raises Fiscal 2019 GAAP Diluted EPS Growth Outlook to 37.0%-41.0% YoY

Raises Fiscal 2019 Non-GAAP Diluted EPS Growth Outlook to 6.2%-7.8% YoY

Acquires TTS Wireless to Further Expand 5G Capabilities

Third Quarter Fiscal 2019 Highlights

 

   

Revenue of $1,025 million, at the midpoint of the $1,005-$1,045 million guidance range

 

   

GAAP diluted EPS of $0.96, above the $0.82-$0.90 guidance range including the benefit of a lower GAAP effective tax rate

 

   

Non-GAAP diluted EPS of $1.19, above the $1.08-$1.14 guidance range including the benefit of a lower non-GAAP effective tax rate

 

   

GAAP operating income of $142 million; GAAP operating margin of 13.9%

 

   

Non-GAAP operating income of $177 million; non-GAAP operating margin of 17.3%

 

   

Quarterly free cash flow of $129 million, comprised of cash flow from operations of $165 million, less $36 million in net capital expenditures and other; normalized free cash flow of $143 million (1)

 

   

Twelve-month backlog of $3.40 billion, up $10 million sequentially

 

   

The board of directors approved a quarterly cash dividend of $0.285 per share to be paid on October 25, 2019

ST. LOUIS – August 7, 2019 – Amdocs Limited (NASDAQ: DOX) today reported operating results for the three months ended June 30, 2019.

 

(1)

Please refer to the Selected Financial Metrics tables below


“We are pleased to report solid Q3 results which included record revenue, stable profitability, healthy free cash flow and our best-ever quarter in managed services. Among the Q3 regional highlights, we announced today that Amdocs is enabling the operation of Comcast’s Xfinity Mobile service under a multi-year managed services agreement, and have been chosen by Charter to support the growth of its Spectrum Mobile business. Over in Europe, we signed an additional multi-year managed services agreement with Sky Italia to support its move into fixed broadband and won a new deal to provide our Amdocs NFV solution for SES, a leading global satellite provider. Meanwhile in Rest of World, we extended our managed service arrangement with Vodafone Idea in India for several more years and signed a significant managed transformation agreement with XL Axiata in Indonesia to automate and digitize their operations,” said Shuky Sheffer, president and chief executive -officer of Amdocs Management Limited.

Sheffer continued, “Highlighting our commitment to be the leading independent provider of network services for 5G and the new generation of open cloud networks, we are today excited to announce the acquisition of TTS Wireless. With its field-proven 5G network planning and optimization experience, we believe TTS Wireless will immediately expand our customer footprint at leading American operators. Additionally, we believe TTS Wireless’ highly-skilled network engineering team will enhance Amdocs’ Open 5G portfolio, helping us to execute on our strategy of providing an end-to-end 5G solution that can accelerate and simplify the deployment and monetization of open and smart 5G networks for our customers.

Sheffer concluded, “We are pleased with our operational and financial execution for the fiscal year to date, and we enter our fourth quarter with strong sales momentum as we continue to bring the innovative solutions that our customers need to modernize, automate and digitize their business. Taking everything into consideration, we are on-track to meet our full year targets for constant currency revenue growth and normalized free cash flow. Moreover, we now expect to deliver diluted non-GAAP earnings per share growth in the range of 6.2% to 7.8% for the full fiscal year 2019, the midpoint of which represents an increase of approximately 50 basis points over our previous guidance.”


Revenue

Revenue for the third fiscal quarter ended June 30, 2019 was $1,025 million, up $5 million sequentially from the second fiscal quarter of 2019 and up 2.2% as reported and 3.4% in constant currency as compared to last year’s third fiscal quarter. Revenue for the third fiscal quarter of 2019 includes a negative impact from foreign currency movements of approximately $3 million relative to the second quarter of fiscal 2019. Revenue was slightly above the midpoint of Amdocs’ guidance, adjusting for the negative impact of approximately $1 million of foreign currency movements relative to guidance.

Net Income and Earnings Per Share

The Company’s GAAP net income for the third quarter of fiscal 2019 was $131.4 million, or $0.96 per diluted share, compared to GAAP net income of $91.5 million, or $0.64 per diluted share, in the prior fiscal year’s third quarter. Net income on a non-GAAP basis was $163.1 million, or $1.19 per diluted share, compared to non-GAAP net income of $147.5 million, or $1.03 per diluted share, in the third quarter of fiscal 2018. Non-GAAP net income excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, equity-based compensation expenses, other, net of related tax effects, in the third quarter of fiscal 2019. For further details of reconciliation of selected financial metrics from GAAP to Non-GAAP, please refer to the tables below.

Returning Cash to Shareholders

 

   

Quarterly Cash Dividend Program: On August 7, 2019, the Board approved the Company’s next quarterly cash dividend payment of $0.285 per share and set September 30, 2019 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on October 25, 2019.

 

   

Share Repurchase Activity: Repurchased $89 million of ordinary shares during the third quarter of fiscal 2019.


Twelve-month Backlog

Twelve-month backlog, which includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities, was $3.40 billion at the end of the third quarter of fiscal 2019, up $10 million from the end of the prior quarter.

Fourth Quarter Fiscal 2019 Outlook

 

   

Revenue of approximately $1,015-$1,055 million, assuming approximately $2 million sequential positive impact from foreign currency fluctuations as compared to the third quarter of fiscal 2019, and a partial quarter revenue contribution from the acquisition of TTS Wireless which closed earlier this week

 

   

GAAP diluted EPS of approximately $0.81-$0.89. The impact of the acquisition of TTS Wireless on GAAP diluted EPS will not be known until after Amdocs completes the purchase price allocation

 

   

Non-GAAP diluted EPS of approximately $1.04-$1.10, excluding amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, and approximately $0.05-$0.07 per share of equity-based compensation expense, net of related tax effects. The impact of the acquisition of TTS Wireless on Amdocs’ non-GAAP diluted earnings per share is expected to be neutral in the fourth quarter of fiscal 2019

Full Year Fiscal 2019 Outlook

 

   

Expects revenue growth of 2.4%-3.4% year-over-year as reported compared with 1.8%-3.8% year-over-year previously

 

   

Expects revenue growth of 3.6%-4.6% year-over-year on a constant currency basis, the midpoint of which is slightly higher compared with 3.0%-5.0% year-over-year previously

 

   

Full year fiscal 2019 revenue guidance incorporates an expected negative impact from foreign currency fluctuations of about 1.2% year-over-year, consistent with our previous expectation

 

   

Expects GAAP diluted earnings per share growth of roughly 37.0%-41.0% year-over-year compared with 33.0%-41.0% year-over-year previously. The impact of the acquisition of TTS Wireless on GAAP diluted EPS will not be known until after Amdocs completes the purchase price allocation


   

Expects non-GAAP diluted earnings per share growth of roughly 6.2%-7.8% year-over-year compared with 4.5%-8.5% year-over-year previously, excluding amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, approximately $0.24-$0.26 per share of equity-based compensation expense and other, net of related tax effects. The impact of the acquisition of TTS Wireless on Amdocs’ non-GAAP diluted earnings per share is expected to be neutral in fiscal year 2019, and neutral in the first full year after closing thereafter

 

   

Reiterates free cash flow guidance of approximately $500 million, comprised of cash flow from operations, less net capital expenditures and other, and normalized free cash flow of approximately $600 million

Our fourth fiscal quarter 2019 and full year fiscal 2019 outlook takes into consideration the Company’s expectations regarding macro and industry specific risks and various uncertainties and certain assumptions that we will discuss on our earnings conference call. However, Amdocs notes market dynamics continue to shift rapidly and that it cannot predict all possible outcomes, including those resulting from T-Mobile’s proposed merger with Sprint, or from other current and potential customer consolidation activity.

Appointment of Board Member

Amdocs is pleased to announce the appointment of John A. MacDonald to the company’s board of directors, effective August 5, 2019, and subject to re-election at Amdocs’ next annual general meeting on Friday, January 31, 2020. For more information, please visit the Investor Relations section of Amdocs’ website at www.amdocs.com.

Conference Call Details

Amdocs will host a conference call on August 7, 2019 at 5:00 p.m. Eastern Time to discuss the Company’s third quarter of fiscal 2019 results. To participate, please dial +1 (844) 513-7152, or +1 (508) 637-5600 outside the United States, approximately 15 minutes before the call and enter passcode 5692979. The call will also be carried live on the Internet via the Amdocs website, www.amdocs.com.


Non-GAAP Financial Measures

This release includes non-GAAP diluted earnings per share and other non-GAAP financial measures, including free cash flow and normalized free cash flow, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expenses, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income and non-GAAP diluted earnings per share growth. These non-GAAP measures exclude the following items:

 

   

amortization of purchased intangible assets and other acquisition-related costs;

 

   

changes in certain acquisition-related liabilities measured at fair value;

 

   

non-recurring and unusual charges;

 

   

equity-based compensation expense;

 

   

other; and

 

   

tax effects related to the above.

Free cash flow equals cash generated by operating activities less net capital expenditures and other, and normalized free cash flow is adjusted to exclude net capital expenditures related to the new campus development, payments for previously expensed restructuring charges, payments for legal dispute settlement, and payments of acquisition related liabilities. These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Amdocs believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Amdocs’ results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Amdocs’ results of operations in conjunction with the corresponding GAAP measures.


Amdocs believes that the presentation of non-GAAP diluted earnings per share and other financial measures, including free cash flow and normalized free cash flow, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expenses, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income and non-GAAP diluted earnings per share growth when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations, as well as the net amount of cash generated by its business operations after taking into account capital spending required to maintain or expand the business.

For its internal budgeting process and in monitoring the results of the business, Amdocs’ management uses financial statements that do not include amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisition-related liabilities measured at fair value, non-recurring and unusual charges, equity-based compensation expense, other and related tax effects. Amdocs’ management also uses the foregoing non-GAAP financial measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Amdocs. In addition, Amdocs believes that significant groups of investors exclude these items in reviewing its results and those of its competitors, because the amounts of the items between companies can vary greatly depending on the assumptions used by an individual company in determining the amounts of the items.

Amdocs further believes that, where the adjustments used in calculating non-GAAP diluted earnings per share are based on specific, identified amounts that impact different line items in the Consolidated Statements of Income (including cost of revenue, research and development, selling, general and administrative, operating income, interest and other expenses, net, income taxes and net income), it is useful to investors to understand how these specific line items in the Consolidated Statements of Income are affected by these adjustments. Please refer to the Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP tables below.


Supporting Resources

 

 

Keep up with Amdocs news by visiting the Company’s website

 

 

Subscribe to Amdocs’ RSS Feed and follow us on Twitter, Facebook, LinkedIn and YouTube

About Amdocs

Amdocs is a leading software and services provider to communications and media companies of all sizes, accelerating the industry’s dynamic and continuous digital transformation. With a rich set of innovative solutions, long-term business relationships with 350 communications and media providers, and technology and distribution ties to 600 content creators, Amdocs delivers business improvements to drive growth. Amdocs and its 25,000 employees serve customers in over 85 countries. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.0 billion in fiscal 2018.

For more information, visit Amdocs at www.amdocs.com.

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs’ growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs’ ability to grow in the business markets that it serves, Amdocs’ ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company’s products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, Amdocs


specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs’ filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2018 filed on December 10, 2018 and our Form 6-K furnished for the first quarter of fiscal 2019 on February 19, 2019 and for the second quarter of fiscal 2019 on May 28, 2019.

Contact:

Matthew Smith

Head of Investor Relations

Amdocs

314-212-8328

E-mail: dox_info@amdocs.com


AMDOCS LIMITED

Consolidated Statements of Income

(in thousands, except per share data)

 

     Three months ended      Nine months ended  
     June 30,      June 30,  
     2019      2018      2019      2018  

Revenue

   $ 1,024,704      $ 1,002,198      $ 3,056,416      $ 2,972,249  

Operating expenses:

           

Cost of revenue

     664,862        650,569        1,986,043        1,940,353  

Research and development

     68,376        72,729        203,827        205,832  

Selling, general and administrative

     125,088        116,396        367,411        355,263  

Amortization of purchased intangible assets and other

     24,058        26,929        73,543        81,256  

Restructuring charges

     —          30,057        —          30,057  
  

 

 

    

 

 

    

 

 

    

 

 

 
     882,384        896,680        2,630,824        2,612,761  
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

     142,320        105,518        425,592        359,488  

Interest and other expense, net

     3,959        3,212        4,303        3,330  
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

     138,361        102,306        421,289        356,158  

Income taxes

     6,913        10,776        63,870        46,028  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 131,448      $ 91,530      $ 357,419      $ 310,130  
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic earnings per share

   $ 0.96      $ 0.64      $ 2.59      $ 2.17  
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted earnings per share

   $ 0.96      $ 0.64      $ 2.58      $ 2.15  
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic weighted average number of shares outstanding

     136,541        141,972        138,126        142,982  
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted weighted average number of shares outstanding

     137,082        143,196        138,769        144,320  
  

 

 

    

 

 

    

 

 

    

 

 

 

Cash dividends declared per share

   $ 0.285      $ 0.250      $ 0.820      $ 0.720  
  

 

 

    

 

 

    

 

 

    

 

 

 


AMDOCS LIMITED

Selected Financial Metrics

(In thousands, except per share data)

 

     Three months ended      Nine months ended  
     June 30,      June 30,  
     2019      2018      2019      2018  

Revenue

   $ 1,024,704      $ 1,002,198      $ 3,056,416      $ 2,972,249  

Non-GAAP operating income

     177,289        173,590        529,900        514,414  

Non-GAAP net income

     163,126        147,547        447,952        439,363  

Non-GAAP diluted earnings per share

   $ 1.19      $ 1.03      $ 3.23      $ 3.04  

Diluted weighted average number of shares outstanding

     137,082        143,196        138,769        144,320  

Free Cash Flows and Normalized Free Cash Flow

(In thousands)

 

     Three months ended     Nine months ended  
     June 30,     June 30,  
     2019     2018     2019     2018  

Net Cash Provided by Operating Activities

   $ 164,473     $ 163,571     $ 442,752     $ 441,900  

Purchases of property and equipment, net (*)

     (35,833     (35,127     (93,761     (197,253

Other

     —         (213     —         (323
  

 

 

   

 

 

   

 

 

   

 

 

 

Free Cash Flow

     128,640       128,231       348,991       244,324  

Payments for legal dispute settlement

     —         —         55,000       —    

Payments for previously expensed restructuring charges

     3,455       —         14,394       —    

Net capital expenditures related to the new campus development (*)

     3,410       980       (2,206     95,011  

Payments of acquisition related liabilities

     7,667       —         7,667       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Normalized Free Cash Flow

   $ 143,172     $ 129,211     $ 423,846     $ 339,335  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(*)

The amounts under “Purchase of property and equipment, net”, and the amounts under “Net capital expenditures related to the new campus development” include proceeds of $9,676 relating to the refund of betterment levy for the nine months ended 30 June 2019 and proceeds from sale of property and equipment of $11 and $74, $57 and $113, for the three and nine months ended 30 June 2019 and 2018, respectively.


AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(In thousands)

 

     Three months ended
June 30, 2019
 
            Reconciliation items        
     GAAP      Amortization
of purchased
intangible
assets and
other
    Equity-based
compensation
expense
    Changes in
certain
acquisition
related
liabilities
measured
at fair
value
    Other     Tax
effect
    Non-GAAP  

Operating expenses:

               

Cost of revenue

   $ 664,862      $ —       $ (5,080   $ (2,076   $ —       $ —       $ 657,706  

Research and development

     68,376        —         (608     —         —         —         67,768  

Selling, general and administrative

     125,088        —         (3,147     —         —         —         121,941  

Amortization of purchased intangible assets and other

     24,058        (24,058     —         —         —         —         —    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     882,384        (24,058     (8,835     (2,076     —               847,415  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     142,320        24,058       8,835       2,076       —         —         177,289  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest and other expense, net

     3,959        —         —         —         (2,025     —         1,934  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     6,913        —         —         —         —         5,316       12,229  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 131,448      $ 24,058     $ 8,835     $ 2,076     $ 2,025     $ (5,316   $ 163,126  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     Three months ended
June 30, 2018
 
            Reconciliation items        
     GAAP      Amortization
of purchased
intangible
assets and
other
    Equity-based
compensation
expense
    Changes in
certain
acquisitions
related
liabilities
measured
at fair
value
    Restructuring
charges
    Tax
effect
    Non-GAAP  

Operating expenses:

               

Cost of revenue

   $ 650,569      $ —       $ (5,074   $ (572   $ —       $ —       $ 644,923  

Research and development

     72,729        —         (1,071     —         —         —         71,658  

Selling, general and administrative

     116,396        —         (4,369     —         —         —         112,027  

Amortization of purchased intangible assets and other

     26,929        (26,929     —         —         —         —         —    

Restructuring charges

     30,057        —         —         —         (30,057     —         —    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     896,680        (26,929     (10,514     (572     (30,057     —         828,608  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     105,518        26,929       10,514       572       30,057       —         173,590  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     10,776        —         —         —         —         12,055       22,831  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 91,530      $ 26,929     $ 10,514     $ 572     $ 30,057     $   (12,055   $ 147,547  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(In thousands)

 

     Nine months ended
June 30, 2019
 
            Reconciliation items        
     GAAP      Amortization of
purchased
intangible assets
and other
    Equity-based
compensation
expense
    Changes in certain
acquisitions related
liabilities measured
at fair value
    Other     Tax
effect
    Non-GAAP  

Operating expenses:

               

Cost of revenue

   $ 1,986,043      $ —       $ (15,261   $ (199   $ —       $ —       $ 1,970,583  

Research and development

     203,827        —         (1,957     —         —         —         201,870  

Selling, general and administrative

     367,411        —         (13,348     —         —         —         354,063  

Amortization of purchased intangible assets and other

     73,543        (73,543     —         —         —         —         —    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     2,630,824        (73,543     (30,566     (199     —         —         2,526,516  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     425,592        73,543       30,566       199       —         —         529,900  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest and other expense, net

     4,303        —         —         —         (2,025     —         2,278  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     63,870        —         —         —         —         15,800       79,670  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 357,419      $ 73,543     $ 30,566     $ 199     $ 2,025     $   (15,800   $ 447,952  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     Nine months ended
June 30, 2018
 
            Reconciliation items  
     GAAP      Amortization of
purchased
intangible assets
and other
    Equity-based
compensation
expense
    Changes in certain
acquisitions related
liabilities measured
at fair value
    Restructuring
charges
    Tax
effect
    Non-GAAP  

Operating expenses:

               

Cost of revenue

   $ 1,940,353      $ —       $ (14,502   $ (9,033   $ —       $ —       $ 1,916,818  

Research and development

     205,832        —         (2,664     —         —         —         203,168  

Selling, general and administrative

     355,263        —         (17,414     —         —         —         337,849  

Amortization of purchased intangible assets and other

     81,256        (81,256     —         —         —         —         —    

Restructuring charges

     30,057        —         —         —         (30,057     —         —    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     2,612,761        (81,256     (34,580     (9,033     (30,057     —         2,457,835  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     359,488        81,256       34,580       9,033       30,057       —         514,414  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     46,028        —         —         —               25,693       71,721  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 310,130      $ 81,256     $ 34,580     $ 9,033     $ 30,057     $ (25,693   $ 439,363  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


AMDOCS LIMITED

Condensed Consolidated Balance Sheets

(In thousands)

 

     As of  
     June 30,
2019
     September 30,
2018
 

ASSETS

     

Current assets

     

Cash, cash equivalents and short-term interest-bearing investments

   $ 457,707      $ 519,216  

Accounts receivable, net, including unbilled of $206,285 and $263,997, respectively

     952,891        971,502  

Prepaid expenses and other current assets

     235,644        229,999  
  

 

 

    

 

 

 

Total current assets

     1,646,242        1,720,717  

Property and equipment, net

     492,718        496,585  

Goodwill and other intangible assets, net

     2,648,395        2,710,144  

Other noncurrent assets

     447,264        420,369  
  

 

 

    

 

 

 

Total assets

   $ 5,234,619      $ 5,347,815  
  

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Current liabilities

     

Accounts payable, accruals and other

   $ 1,067,065      $ 1,162,543  

Deferred revenue

     115,963        132,414  
  

 

 

    

 

 

 

Total current liabilities

     1,183,028        1,294,957  

Other noncurrent liabilities

     523,906        560,816  

Total Amdocs Limited Shareholders’ equity

     3,485,332        3,448,879  

Noncontrolling interests

     42,353        43,163  
  

 

 

    

 

 

 

Total equity

     3,527,685        3,492,042  
  

 

 

    

 

 

 

Total liabilities and equity

   $  5,234,619      $ 5,347,815  
  

 

 

    

 

 

 


AMDOCS LIMITED

Consolidated Statements of Cash Flows

(In thousands)

 

     Nine months ended
June 30,
 
     2019     2018  

Cash Flow from Operating Activities:

    

Net income

   $ 357,419     $ 310,130  

Reconciliation of net income to net cash provided by operating activities:

    

Depreciation and amortization

     155,258       157,421  

Equity-based compensation expense

     30,566       34,580  

Deferred income taxes

     (9,455     7,947  

Loss from short-term interest-bearing investments

     538       1,324  

Net changes in operating assets and liabilities, net of amounts acquired:

    

Accounts receivable, net

     22,721       (81,690

Prepaid expenses and other current assets

     4,655       (21,796

Other noncurrent assets

     3,370       2,006  

Accounts payable, accrued expenses and accrued personnel

     (79,232     42,374  

Deferred revenue

     (36,192     21,221  

Income taxes payable, net

     (4,605     (15,428

Other noncurrent liabilities

     (2,291     (16,189
  

 

 

   

 

 

 

Net cash provided by operating activities

     442,752       441,900  
  

 

 

   

 

 

 

Cash Flow from Investing Activities:

    

Purchases of property and equipment, net (*)

     (93,761     (197,253

Proceeds from sale of short-term interest-bearing investments

     51,473       302,949  

Purchase of short-term interest-bearing investments

     —         (76,037

Net cash paid for acquisitions

     (8,782     (352,599

Other

     1,116       (2,414
  

 

 

   

 

 

 

Net cash used in investing activities

     (49,954     (325,354
  

 

 

   

 

 

 

Cash Flow from Financing Activities:

    

Borrowings under financing arrangements

     —         120,000  

Payments under financing arrangements

     —         (120,000

Repurchase of shares

     (308,036     (329,593

Proceeds from employee stock options exercised

     25,706       76,236  

Payments of dividends

     (108,886     (98,929

Investment by noncontrolling interests, net

     (4,776     47,013  

Payment of contingent consideration from a business acquisition

     (7,470     —    

Other

     (331     (323
  

 

 

   

 

 

 

Net cash used in financing activities

     (403,793     (305,596
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (10,995     (189,050

Cash and cash equivalents at beginning of period

     418,783       649,611  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 407,788     $ 460,561  
  

 

 

   

 

 

 

 

 

(*)

The amounts under “Purchase of property and equipment, net”, include proceeds of $9,676 relating to the refund of betterment levy for the nine months ended June 30, 2019 and proceeds from sale of property and equipment of $74 and $113, for the nine months ended June 30, 2019 and 2018, respectively.


AMDOCS LIMITED

Supplementary Information

(In millions)

 

     Three months ended  
     June 30,
2019
     March 31,
2019
     December 31,
2018
     September 30,
2018
     June 30,
2018
 

North America

   $ 643.9      $ 634.2      $ 660.5      $ 638.2      $ 644.8  

Europe

     145.5        151.0        146.1        150.6        139.3  

Rest of the World

     235.3        234.5        205.5        213.8        218.1  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Revenue

   $ 1,024.7      $ 1,019.7      $ 1,012.1      $ 1,002.6      $ 1,002.2  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Three months ended  
     June 30,
2019
     March 31,
2019
     December 31,
2018
     September 30,
2018
     June 30,
2018
 

Managed Services Revenue

   $ 578.1      $ 559.5      $ 525.5      $ 508.9      $ 515.0  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     As of  
     June 30,
2019
     March 31,
2019
     December 31,
2018
     September 30,
2018
     June 30,
2018
 

12-Month Backlog

   $ 3,400      $ 3,390      $ 3,370      $ 3,360      $ 3,330  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

# # #