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, Aug. 07, 2019 (GLOBE NEWSWIRE) -- Amdocs Limited (NASDAQ: DOX) today reported operating results for the three months ended June 30, 2019.
“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
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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 | |||||
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