Back to GetFilings.com



 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

     
[x]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

   
    For the quarterly period ended November 30, 2003

   
    OR

   
[  ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from _____ to _____.
   

Commission File Number: 000-49713

ACCENTURE SCA
(Exact name of Registrant as specified in its charter)

     
Luxembourg   98-0351796
(State or other jurisdiction of   (I.R.S. Employer
incorporation or organization)   Identification No.)

1 rue Guillaume Kroll
L-1882 Luxembourg
(Address of principal executive offices)

(352) 26 42 35 00
(Registrant’s telephone number, including area code)

     Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [  ]

     Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act.) Yes [  ] No [x]

     The number of shares of the Registrant’s Class I common shares, par value €1.25 per share, outstanding as of January 5, 2004 was 885,818,582 (which number does not include 85,474,872 issued shares held by subsidiaries of the Registrant).

 

 

ACCENTURE SCA

INDEX

         
        Page
       
Part I   Financial Information    

       
Item 1.   Financial Statements (unaudited)    
    Consolidated Balance Sheets as of November 30, 2003 and August 31, 2003.   3
    Consolidated Income Statements for the three months ended November 30, 2003 and 2002.   4
    Consolidated Shareholders’ Equity Statement for the three months ended November 30, 2003   5
    Consolidated Cash Flows Statements for the three months ended November 30, 2003 and 2002   6
    Notes to Consolidated Financial Statements   7

       
Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations   11

       
Item 3.   Quantitative and Qualitative Disclosures About Market Risk   25

       
Item 4.   Controls and Procedures   25

       
Part II   Other Information    

       
Item 1.   Legal Proceedings   25

       
Item 6.   Exhibits and Reports on Form 8-K   26

       
Signature       27

2

 

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ACCENTURE SCA

CONSOLIDATED BALANCE SHEETS

November 30, 2003 and August 31, 2003
(In thousands of U.S. dollars, except share amounts)

                         
            November 30,   August 31,
            2003   2003
           
 
            (Unaudited)        
       
ASSETS
                
CURRENT ASSETS:
                
 
Cash and cash equivalents
   $2,329,651     $2,332,161  
 
Restricted cash
     4,357       83,280  
 
Receivables from clients, net
     1,486,133       1,416,153  
 
Unbilled services
     1,004,231       828,515  
 
Deferred income taxes, net
     148,298       147,040  
 
Other current assets
     279,700       230,062  
 
    
     
 
   
Total current assets
     5,252,370       5,037,211  
 
    
     
 
NON-CURRENT ASSETS:
                
 
Unbilled services
     156,400       132,522  
 
Investments
     30,526       33,330  
 
Property and equipment, net
     631,022       650,455  
 
Goodwill
     199,657       188,659  
 
Deferred income taxes, net
     330,581       326,286  
 
Other non-current assets
     102,710       90,777  
 
    
     
 
   
Total non-current assets
     1,450,896       1,422,029  
 
    
     
 
TOTAL ASSETS
   $6,703,266     $6,459,240  
 
    
     
 
     
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
CURRENT LIABILITIES:
                
 
Short-term bank borrowings
     $33,655       $43,500  
 
Current portion of long-term debt
     2,559       2,662  
 
Accounts payable
     496,809       573,201  
 
Deferred revenues
     659,021       676,841  
 
Accrued payroll and related benefits
     1,063,085       974,319  
 
Income taxes payable
     782,058       671,026  
 
Deferred income taxes, net
     22,589       22,390  
 
Other accrued liabilities
     390,837       387,157  
 
    
     
 
   
Total current liabilities
     3,450,613       3,351,096  
 
    
     
 
NON-CURRENT LIABILITIES:
                
 
Long-term debt
     13,729       13,955  
 
Retirement obligation
     590,907       575,973  
 
Deferred income taxes, net
     3,747       3,572  
 
Other non-current liabilities
     759,587       836,850  
 
    
     
 
   
Total non-current liabilities
     1,367,970       1,430,350  
 
    
     
 
MINORITY INTEREST
     34,863       34,233  
 
    
     
 
SHAREHOLDERS’ EQUITY:
                
Class I common shares, par value 1.25 euros per share, 19,868,950,000 shares authorized, 753,843,192 issued as of November 30, 2003 and August 31, 2003
     845,307       845,307  
Class I-A common shares, par value 1.25 euros per share, 5,000,000 shares authorized, issued and outstanding
     5,435       5,435  
Class I-B common shares, par value 1.25 euros per share, 5,000,000 shares authorized, issued and outstanding
     5,435       5,435  
Class I-C common shares, par value 1.25 euros per share, 10,000,000 shares authorized, issued and outstanding
     10,870       10,870  
Class I-D common shares, par value 1.25 euros per share, 10,000,000 shares authorized, issued and outstanding
     10,870       10,870  
Class I-E common shares, par value 1.25 euros per share, 15,000,000 shares authorized, issued and outstanding
     16,304       16,304  
Class I-F common shares, par value 1.25 euros per share, 15,000,000 shares authorized, issued and outstanding
     16,304       16,304  
Class I-G common shares, par value 1.25 euros per share, 20,000,000 shares authorized, issued and outstanding
     21,739       21,739  
Class I-H common shares, par value 1.25 euros per share, 25,000,000 shares authorized, issued and outstanding
     27,174       27,174  
Class I-I common shares, par value 1.25 euros per share, 5,000,000 shares authorized, issued and outstanding
     5,435       5,435  
Class I-J common shares, par value 1.25 euros per share, 5,000,000 shares authorized, issued and outstanding
     5,435       5,435  
Class I-K common shares, par value 1.25 euros per share, 16,050,000 shares authorized, issued and outstanding
     18,074       18,074  
Class I-L common shares, par value 1.25 euros per share, 5,025,720 shares authorized, issued and outstanding
     5,540       5,540  
Class I-M common shares, par value 1.25 euros per share, 68,626,707 shares authorized, issued and outstanding
     78,398       78,398  
Class I-N common shares, par value 1.25 euros per share, 12,747,835 shares authorized, issued and outstanding
     18,301       —  
Class II common shares, par value 1.25 euros per share, 20,000,000,000 shares authorized, 470,958,308 shares issued and outstanding
     529,281       529,281  
Restricted share units (related to Accenture Ltd Class A common shares), 33,797,847 and 33,803,376 units issued and outstanding as of November 30, 2003 and August 31, 2003, respectively,
     495,260       495,024  
Additional paid-in capital
     3,013,744       2,687,575  
Treasury shares, at cost, 81,751,874 and 45,256,961 Class I common shares at November 30, 2003 and August 31, 2003, respectively
     (1,654,956 )     (846,959 )
Investment in Accenture Ltd shares, at cost, 275,460 and 5,229,487 shares at November 30, 2003 and August 31, 2003, respectively
     (6,567 )     (88,198 )
Accenture Ltd Class A shares owned by the Accenture Ltd Stock Employee Compensation Trust, at cost, 3,500,000 and 18,081,800 shares at November 30, 2003 and August 31, 2003, respectively
     (78,965 )     (308,878 )
Retained deficit
     (1,376,214 )     (1,708,371 )
Accumulated other comprehensive loss
     (162,384 )     (188,233 )
 
    
     
 
Total shareholders’ equity
     1,849,820       1,643,561  
 
    
     
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
     $6,703,266       $6,459,240  
 
    
     
 

The accompanying notes are an integral part of these financial statements.

3

 

ACCENTURE SCA

CONSOLIDATED INCOME STATEMENTS

For the Three Months Ended November 30, 2003 and 2002
(In thousands of U.S. dollars)
(Unaudited)

                       
          2003   2002
         
 
REVENUES:
                
 
Revenues before reimbursements
   $ 3,261,585     $ 2,929,958  
 
Reimbursements
     312,903       397,489  
 
    
     
 
   
Revenues
     3,574,488       3,327,447  
OPERATING EXPENSES:
                
 
Cost of services:
                
   
Cost of services before reimbursable expenses
     2,150,890       1,774,197  
   
Reimbursable expenses
     312,903       397,489  
 
    
     
 
   
Cost of services
     2,463,793       2,171,686  
 
Sales and marketing
     350,597       355,833  
 
General and administrative costs
     339,356       370,731  
 
Reorganization benefit
     (86,398 )     —  
 
    
     
 
     
Total operating expenses
     3,067,348       2,898,250  
 
    
     
 
OPERATING INCOME
     507,140       429,197  
Gain on investments, net
     498       3,805  
Interest income
     10,423       9,093  
Interest expense
     (5,751 )     (6,536 )
Other income (expense)
     1,526       (1,775 )
Equity in losses of affiliates
     (686 )     (530 )
 
    
     
 
INCOME BEFORE TAXES
     513,150       433,254  
Provision for taxes
     178,576       164,637  
 
    
     
 
INCOME BEFORE MINORITY INTEREST
     334,574       268,617  
Minority interest
     (2,417 )     (1,499 )
 
    
     
 
NET INCOME
   $332,157     $267,118  
 
    
     
 

The accompanying notes are an integral part of these financial statements.

4

 

ACCENTURE SCA

CONSOLIDATED SHAREHOLDERS’ EQUITY STATEMENT

For the Three Months Ended November 30, 2003
(U.S. dollars and share amounts in thousands)
(Unaudited)

                                                                                                             
                                        Restricted                                           Investment
        Class   Class   Share                           Investment   in
        I   II   Units                           in   Accenture
        Common   Common   Common           Treasury   Accenture   Ltd-
        Shares   Shares   Shares   Additional   Shares   Ltd   SECT
                No.           No.           No.   Paid-in           No.           No.           No.
        $   Shares   $   Shares   $   Shares   Capital   $   Shares   $   Shares   $   Shares
       
 
 
 
 
 
 
 
 
 
 
 
 
Balance at August 31, 2003
   $ 1,072,320       958,546     $ 529,281       470,958     $ 495,024       33,803     $ 2,687,575     $ (846,959 )     (45,257 )   $ (88,198 )     (5,229 )   $ (308,878 )     (18,082 )
Comprehensive income
                                                                                                        
Net income
                                                                                                        
 
Other comprehensive income (loss):
                                                                                                        
 
Unrealized gains on marketable securities, net of reclassification adjustment Foreign currency translation adjustments
                                                                                                        
   
Other comprehensive income (loss)
                                                                                                        
 
Comprehensive income
                                                                                                        
Income tax benefit on stock-based compensation plans
                                                     11,658                                                  
Purchase of Accenture Ltd Class A common shares
                                                     (9,324 )                     (17,509 )     (657 )     (78,965 )     (3,500 )
Transfer of shares from SECT
                                                                             (308,878 )     (18,082 )     308,878       18,082  
Vesting of restricted share units, net
                                     5,096       278                                                        
Purchases/redemptions of Accenture Class I common shares and Canada Holdings Inc. exchangeable shares
                                                     (12,595 )     (1,602,958 )     (78,578 )                                
Issuance of common shares:
                                                                                                        
 
Employee share purchase plan
                                                     (20,137 )                     86,951       4,394                  
 
Employee stock options