6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of November, 2018

Commission File Number 1-14840

 

 

AMDOCS LIMITED

 

 

Hirzel House, Smith Street,

St. Peter Port, Island of Guernsey, GY1 2NG

Amdocs, Inc.

1390 Timberlake Manor Parkway, Chesterfield, Missouri 63017

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

FORM 20-F  ☒            FORM 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

YES  ☐            NO  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-            

 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

AMDOCS LIMITED
By:   /s/ Matthew E. Smith
  Matthew E. Smith
  Secretary and Authorized Signatory

Date: November 8, 2018


EXHIBIT INDEX

 

EXHIBIT
NO.

  

DESCRIPTION

99.1    Amdocs Limited Press Release dated November 8, 2018.
EX-99.1

Exhibit 99.1

 

LOGO

Amdocs Limited Reports Fourth Quarter Fiscal 2018 Results

Record Quarterly Revenue of $1 Billion

Expects Fiscal 2019 Revenue Growth of 2.0%-6.0% YoY in Constant Currency

Quarterly Cash Dividend to be Raised From $0.25 to $0.285 Per Share

Fourth Quarter Fiscal 2018 Highlights

 

   

Revenue of $1 billion, slightly above the midpoint of the $980-$1,020 million guidance range including a negative impact from foreign currency movements of approximately $5 million relative to the third quarter of fiscal 2018. Revenue guidance had included a negative sequential impact from foreign currency fluctuations of approximately $5 million as compared to the third quarter of fiscal 2018

 

   

GAAP diluted EPS of $0.31, below the $0.71-$0.79 guidance range, primarily due to a non-recurring charge of $0.36 per diluted share incurred to settle a previously disclosed long-running legal dispute, and changes in certain acquisitions related liabilities measured at fair value of $0.06 per diluted share, net of tax effect

 

   

Non-GAAP diluted EPS of $0.99, above the midpoint of the $0.95-$1.01 guidance range

 

   

GAAP operating income of $69 million; GAAP operating margin of 6.9%

 

   

Non-GAAP operating income of $173 million; non-GAAP operating margin of 17.2%

 

   

Normalized quarterly free cash flow of $89 million, comprised of cash flow from operations of $115 million, less $34 million in net capital expenditures and other, and excluding payments of non-recurring charges and the multi-year development of the new campus in total amount of $8 million

 

   

Normalized full year free cash flow of $428 million, comprised of cash flow from operations of $557 million, less $232 million in net capital expenditures and other, and excluding payments of non-recurring charges and the multi-year development of the new campus in total amount of $103 million

 

   

Twelve-month backlog of $3.36 billion, up $30 million sequentially

 

   

Quarterly cash dividend of $0.25 per share, to be paid on January 18, 2019

 

   

The board of directors also approved an increase in the Company’s quarterly cash dividend payment from $0.25 per share to $0.285 per share, anticipated to be paid in April 2019, subject to shareholder approval at the January 2019 annual meeting

ST. LOUIS – November 8, 2018 – Amdocs Limited (NASDAQ: DOX) today reported operating results for the three months ended September 30, 2018.

“We are pleased to report solid results in our fourth fiscal quarter. Revenue was slightly above the midpoint of our guidance and reflected normal customer fluctuations in North America, continued growth in Rest of World and our best quarter in more than a decade in Europe. At the operating level, our profitability was stable as we focused on consistent project execution and delivery. Overall, we wrapped up fiscal 2018 with full year non-GAAP diluted earnings per share growth of 6.1%, which is in line with the midpoint of the guidance range of 4.0% to 8.0% that we issued last November,” said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

Sheffer continued, “Our sales momentum remained healthy in Q4 as we continued to penetrate new customers and new geographies with significant project and managed services awards. Among the highlights, we won our first ever transformation award with TIM, the largest communications provider in Italy, that further expands our customer footprint in this key European market. We also strengthened our position at PLDT in the Philippines where we signed a six-year managed IT infrastructure deal that adds to the seven-year, $300 million managed transformation agreement that we signed only earlier this year”.


“Looking at the year ahead, the visibility of our record 12-month backlog points to an improved rate of revenue growth as we enable and support the continuous digital, media and network transformations of our customers. Taking everything in to consideration, we expect non-GAAP diluted earnings per share growth in the range of 3.0% to 7.0% in fiscal 2019. Moreover, we plan to further improve the total return we provide to shareholders by raising our quarterly dividend payment by 14% to 28.5 cents per share, subject to shareholders approval at the annual meeting in January 2019.”

Revenue

Revenue for the fourth fiscal quarter ended September 30, 2018 was $1.0 billion, up $0.4 million sequentially from the third fiscal quarter of 2018 and up 2.3% as compared to last year’s fourth fiscal quarter. Revenue for the fourth fiscal quarter of 2018 includes a negative impact from foreign currency movements of approximately $5 million relative to the third quarter of fiscal 2018.

For the fiscal year ended September 30, 2018, revenue increased by 2.8% to $4.0 billion.

Net Income and Earnings Per Share

The Company’s GAAP net income for the fourth quarter of fiscal 2018 was $44.3 million, or $0.31 per diluted share, compared to GAAP net income of $107.2 million, or $0.73 per diluted share, in the prior fiscal year’s fourth quarter. GAAP net income for the fourth quarter of fiscal 2018 includes a non-recurring charge of a loss of $0.36 per diluted share, net of tax effect incurred to settle a previously disclosed long-running legal dispute. Net income on a non-GAAP basis was $140.2 million, or $0.99 per diluted share, compared to non-GAAP net income of $137.4 million, or $0.94 per diluted share, in the fourth quarter of fiscal 2017. 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 of $12.9 million, and non-recurring charges of a loss incurred to settle a previously disclosed long-running legal dispute, net of related tax effects, in the fourth quarter of fiscal 2018.

The Company’s GAAP net income in fiscal 2018 was $354.4 million, or $2.47 per diluted share, compared to GAAP net income of $436.8 million, or $2.96 per diluted share, in fiscal 2017. Fiscal 2018 net income on a non-GAAP basis was $579.6 million, or $4.03 per diluted share, compared to non-GAAP net income of $560.6 million, or $3.80 per diluted share, in fiscal 2017.


Returning Cash to Shareholders

 

   

Quarterly Cash Dividend Program: On November 8, 2018, the Board approved the Company’s next quarterly cash dividend payment of $0.25 per share and set December 31, 2018 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on January 18, 2019. The Board also approved an increase in the Company’s quarterly cash dividend payment to $0.285 per share, which is anticipated to be paid in April 2019, provided that the increase is approved by shareholders at the January 2019 annual general meeting of shareholders.

 

   

Share Repurchase Activity: Repurchased $90 million of ordinary shares during the fourth quarter of fiscal 2018.

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 $3.36 billion at the end of the fourth quarter of fiscal 2018, up $30 million from the end of the prior quarter.

First Quarter Fiscal 2019 Outlook

 

   

Revenue of approximately $990-$1,030 million, assuming an immaterial sequential impact from foreign currency fluctuations as compared to the fourth quarter of fiscal 2018

 

   

GAAP diluted EPS of approximately $0.67-$0.75

 

   

Non-GAAP diluted EPS of approximately $0.95-$1.01, excluding amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, and approximately $0.09-$0.11 per share of equity-based compensation expense, net of related tax effects Expected non-GAAP effective tax rate above the high-end of the annual target range of 13%-17% in the first quarter fiscal 2019


Full Year Fiscal 2019 Outlook

 

   

Revenue growth of 1.0%-5.0% year-over-year

 

   

Revenue growth of 2.0%-6.0% year-over-year on a constant currency basis

 

   

Full year fiscal 2019 revenue guidance incorporates an expected negative impact from foreign currency fluctuations of about 1.0% year-over-year

 

   

GAAP diluted earnings per share growth of roughly 29.0%-38.0% year-over-year

 

   

Non-GAAP diluted earnings per share growth of roughly 3.0%-7.0% year-over-year, excluding amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, and approximately $0.22-$0.30 per share of equity-based compensation expense, net of related tax effects

Our first 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.

Conference Call Details

Amdocs will host a conference call on November 8, 2018 at 5:00 p.m. Eastern Time to discuss the Company’s fourth quarter of fiscal 2018 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 4072429. 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, 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 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; and

 

   

tax effects related to the above.

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, 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 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, nonrecurring restructuring charges, nonrecurring and unusual charges related to a loss incurred to settle a previously disclosed long-running legal dispute, changes in certain acquisition-related liabilities measured at fair value, equity-based compensation expense 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, 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.


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, 2017 filed on December 11, 2017 and our Form 6-K furnished for the first quarter of fiscal 2018 on February 12, 2018, the second quarter of fiscal 2018 on May 21, 2018 and for the third quarter of fiscal 2018 on August 15, 2018.

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     Fiscal year ended  
     September 30,     September 30,  
     2018     2017     2018     2017  

Revenue

   $ 1,002,588     $ 979,724     $ 3,974,837     $ 3,867,155  

Operating expenses:

        

Cost of revenue

     654,923       636,445       2,595,276       2,507,656  

Research and development

     70,783       64,686       276,615       259,097  

Selling, general and administrative

     125,830       120,237       481,093       472,778  

Amortization of purchased intangible assets and other

     27,233       26,309       108,489       110,291  

Non-recurring charges

     55,000       —         85,057       —    
  

 

 

   

 

 

   

 

 

   

 

 

 
     933,769       847,677       3,546,530       3,349,822  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     68,819       132,047       428,307       517,333  

Interest and other (expense) income, net

     (3,436     (2,342     (6,766     (4,421
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     65,383       129,705       421,541       512,912  

Income taxes

     21,117       22,496       67,145       76,086  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 44,266     $ 107,209     $ 354,396     $ 436,826  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ 0.31     $ 0.74     $ 2.49     $ 2.99  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

   $ 0.31     $ 0.73     $ 2.47     $ 2.96  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic weighted average number of shares outstanding

     140,760       144,764       142,422       146,017  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted weighted average number of shares outstanding

     141,872       146,141       143,703       147,431  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash dividends declared per share

   $ 0.250     $ 0.220     $ 0.970     $ 0.855  
  

 

 

   

 

 

   

 

 

   

 

 

 


AMDOCS LIMITED

Selected Financial Metrics

(in thousands, except per share data)

 

     Three months ended      Fiscal year ended  
     September 30,      September 30,  
     2018      2017      2018      2017  

Revenue

   $ 1,002,588      $ 979,724      $ 3,974,837      $ 3,867,155  

Non-GAAP operating income

     172,606        168,197        687,020        665,472  

Non-GAAP net income

     140,230        137,419        579,593        560,590  

Non-GAAP diluted earnings per share

   $ 0.99      $ 0.94      $ 4.03      $ 3.80  

Diluted weighted average number of shares outstanding

     141,872        146,141        143,703        147,431  


AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(in thousands)

 

     Three months ended
September 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
    Non-
recurring
charges
    Tax effect     Non-GAAP  

Operating expenses:

               

Cost of revenue

   $ 654,923      $ —       $ (3,752   $ (8,658   $ —       $ —       $ 642,513  

Research and development

     70,783        —         (813     —         —         —         69,970  

Selling, general and administrative

     125,830        —         (8,331     —         —         —         117,499  

Amortization of purchased intangible assets and other

     27,233        (27,233     —         —         —         —         —    

Non-recurring charges

     55,000        —         —         —         (55,000     —         —    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     933,769        (27,233     (12,896     (8,658     (55,000     —         829,982  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     68,819        27,233       12,896       8,658       55,000       —         172,606  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     21,117        —         —         —         —         7,822       28,940  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 44,266      $ 27,233     $ 12,896     $ 8,658     $ 55,000     $ (7,822   $ 140,230  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Three months ended
September 30, 2017
 
            Reconciliation items        
     GAAP      Amortization of
purchased
intangible assets
and other
    Equity based
compensation
expense
    Tax effect     Non-GAAP  

Operating expenses:

           

Cost of revenue

   $ 636,445      $ —       $ (4,481   $ —       $ 631,964  

Research and development

     64,686        —         (822     —         63,864  

Selling, general and administrative

     120,237        —         (4,538     —         115,699  

Amortization of purchased intangible assets and other

     26,309        (26,309     —         —         —    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     847,677        (26,309     (9,841     —         811,527  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     132,047        26,309       9,841       —         168,197  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     22,496        —         —         5,940       28,436  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 107,209      $ 26,309     $ 9,841     $ (5,940   $ 137,419  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 


AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(in thousands)

 

     Fiscal year ended
September 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
    Non-
recurring
charges
    Tax effect     Non-GAAP  

Operating expenses:

               

Cost of revenue

   $ 2,595,276      $ —       $ (18,253   $ (17,692   $ —       $ —       $ 2,559,331  

Research and development

     276,615        —         (3,477     —         —         —         273,138  

Selling, general and administrative

     481,093        —         (25,746     —         —         —         455,347  

Amortization of purchased intangible assets and other

     108,489        (108,489     —         —         —         —         —    

Non-recurring charges

     85,057        —         —         —         (85,057     —         —    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     3,546,530        (108,489     (47,476     (17,692     (85,057     —         3,287,816  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     428,307        108,489       47,476       17,692       85,057       —         687,020  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     67,145        —         —         —         —         33,517       100,662  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 354,396      $ 108,489     $ 47,476     $ 17,692     $ 85,057     $ (33,517   $ 579,593  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Fiscal year ended
September 30, 2017
 
            Reconciliation items        
     GAAP      Amortization of
purchased
intangible assets
and other
    Equity based
compensation
expense
    Changes in
certain
acquisitions
related
liabilities
measured
at fair
value
    Tax effect     Non-GAAP  

Operating expenses:

             

Cost of revenue

   $ 2,507,656      $ —       $ (19,215   $ 6,691     $ —       $ 2,495,132  

Research and development

     259,097        —         (3,536     —         —         255,561  

Selling, general and administrative

     472,778        —         (21,788     —         —         450,990  

Amortization of purchased intangible assets and other

     110,291        (110,291     —         —         —         —    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     3,349,822        (110,291     (44,539     6,691       —         3,201,683  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     517,333        110,291       44,539       (6,691     —         665,472  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     76,086        —         —         —         24,375       100,461  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 436,826      $ 110,291     $ 44,539     $ (6,691   $ (24,375   $ 560,590  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


AMDOCS LIMITED

Condensed Consolidated Balance Sheets

(in thousands)

 

     As of  
     September 30,
2018
     September 30,
2017
 

ASSETS

     

Current assets

     

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

   $ 519,216      $ 979,608  

Accounts receivable, net, including unbilled of $263,997 and $229,695, respectively

     971,502        865,068  

Prepaid expenses and other current assets

     229,999        203,810  
  

 

 

    

 

 

 

Total current assets

     1,720,717        2,048,486  

Property and equipment, net

     496,585        355,685  

Goodwill and other intangible assets, net

     2,710,144        2,398,535  

Other noncurrent assets

     420,369        476,674  
  

 

 

    

 

 

 

Total assets

   $ 5,347,815      $ 5,279,380  
  

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Current liabilities

     

Accounts payable, accruals and other

   $ 1,162,543      $ 1,059,855  

Deferred revenue

     132,414        113,091  
  

 

 

    

 

 

 

Total current liabilities

     1,294,957        1,172,946  

Other noncurrent liabilities

     560,816        532,364  

Total Amdocs Limited Shareholders’ equity

     3,448,879        3,574,070  

Noncontrolling interests

     43,163        —    

Total equity

   $ 3,492,042      $ 3,574,070  
  

 

 

    

 

 

 

Total liabilities and equity

   $ 5,347,815      $ 5,279,380  
  

 

 

    

 

 

 


AMDOCS LIMITED

Consolidated Statements of Cash Flows

(in thousands)

 

     Fiscal year ended September 30,  
     2018     2017  

Cash Flow from Operating Activities:

    

Net income

   $ 354,396     $ 436,826  

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

    

Depreciation and amortization

     207,394       214,885  

Equity-based compensation expense

     47,476       44,539  

Deferred income taxes

     21,398       6,551  

Excess tax benefit from equity-based compensation

     —         (4,666

Loss from short-term interest-bearing investments

     1,324       9  

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

    

Accounts receivable

     (67,198     (41,075

Prepaid expenses and other current assets

     (18,736     11,002  

Other noncurrent assets

     9,674       (52,667

Accounts payable, accrued expenses and accrued personnel

     25,348       72,049  

Deferred revenue

     7,650       (50,230

Income taxes payable

     (22,759     (15,145

Other noncurrent liabilities

     (8,718     14,034  
  

 

 

   

 

 

 

Net cash provided by operating activities

     557,249       636,112  
  

 

 

   

 

 

 

Cash Flow from Investing Activities:

    

Purchase of property and equipment

     (231,146     (133,392

Proceeds from sale of short-term interest-bearing investments

     303,090       278,066  

Purchase of short-term interest-bearing investments

     (76,037     (281,983

Net cash paid for acquisitions

     (355,142     (18,064

Other

     (3,157     (29,940
  

 

 

   

 

 

 

Net cash used in investing activities

     (362,392     (185,313
  

 

 

   

 

 

 

Cash Flow from Financing Activities:

    

Borrowings under financing arrangements

     120,000       200,000  

Payments under financing arrangements

     (120,000     (400,000

Repurchase of shares

     (419,228     (340,597

Proceeds from employee stock options exercised

     81,280       87,586  

Payments of dividends

     (134,292     (121,503

Investment by noncontrolling interests, net

     47,013    

Excess tax benefit from equity-based compensation and other

     —         4,666  

Other

     (458     —    
  

 

 

   

 

 

 

Net cash used in financing activities

     (425,685     (569,848
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (230,828     (119,049

Cash and cash equivalents at beginning of period

     649,611       768,660  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 418,783     $ 649,611  
  

 

 

   

 

 

 


AMDOCS LIMITED

Supplementary Information

(in millions)

 

     Three months ended  
     September 30,
2018
     June 30,
2018
     March 31,
2018
     December 31,
2017
     September 30,
2017
 

North America

   $ 638.2      $ 644.8      $ 624.2      $ 643.0      $ 644.1  

Europe

     150.6        139.3        148.6        133.7        129.8  

Rest of the World

     213.8        218.1        219.5        201.0        205.8  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Revenue

   $ 1,002.6      $ 1,002.2      $ 992.3      $ 977.7      $ 979.7  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     Three months ended  
     September 30,
2018
     June 30,
2018
     March 31,
2018
     December 31,
2017
     September 30,
2017
 

Managed Services Revenue

   $ 508.9      $ 515.0      $ 508.9      $ 518.7      $ 503.8  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     Three months ended  
     September 30,
2018
     June 30,
2018
     March 31,
2018
     December 31,
2017
     September 30,
2017
 

Customer Experience Systems

   $ 992.5      $ 991.0      $ 980.7      $ 965.9      $ 967.7  

Directory

     10.1        11.2        11.6        11.8        12.0  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Revenue

   $ 1,002.6      $ 1,002.2      $ 992.3      $ 977.7      $ 979.7  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     As of  
     September 30,
2018
     June 30,
2018
     March 31,
2018
     December 31,
2017
     September 30,
2017
 

12-Month Backlog

   $ 3,360      $ 3,330      $ 3,320      $ 3,260      $ 3,250  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

# # #