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 Quarter Ended June 30, 2023
Commission File Number 1-14840
AMDOCS LIMITED
Hirzel House, Smith Street,
St. Peter Port, Island of Guernsey, GY1 2NG
Amdocs, Inc.
625 Maryville Centre Drive, Suite 200 Saint Louis, Missouri 63141
(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- _______
AMDOCS LIMITED
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
FOR THE QUARTER ENDED JUNE 30, 2023
INDEX
3 |
|
3 |
|
Unaudited Consolidated Financial Statements |
|
3 |
|
4 |
|
5 |
|
6 |
|
8 |
|
9 |
|
22 |
|
31 |
|
Item 1. Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities |
31 |
31 |
|
31 |
This report on Form 6-K shall be incorporated by reference into any Registration Statement filed by the Registrant that by its terms automatically incorporates the Registrant's filings and submissions with the SEC under Sections 13(a), 13(c) or 15(d) of the Securities Exchange Act of 1934.
2
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
AMDOCS LIMITED
CONSOLIDATED BALANCE SHEETS
(dollar and share amounts in thousands, except per share data)
|
|
As of |
|
|||||
|
|
June 30, |
|
|
September 30, |
|
||
|
|
(Unaudited) |
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
517,657 |
|
|
$ |
573,377 |
|
Short-term interest-bearing investments |
|
|
231,858 |
|
|
|
244,603 |
|
Accounts receivable, net |
|
|
1,076,123 |
|
|
|
946,777 |
|
Prepaid expenses and other current assets |
|
|
270,197 |
|
|
|
238,390 |
|
Total current assets |
|
|
2,095,835 |
|
|
|
2,003,147 |
|
Property and equipment, net |
|
|
783,257 |
|
|
|
794,287 |
|
Lease assets |
|
|
149,586 |
|
|
|
176,884 |
|
Goodwill |
|
|
2,721,970 |
|
|
|
2,662,825 |
|
Intangible assets, net |
|
|
175,370 |
|
|
|
178,312 |
|
Other noncurrent assets |
|
|
613,324 |
|
|
|
574,938 |
|
Total assets |
|
$ |
6,539,342 |
|
|
$ |
6,390,393 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
293,064 |
|
|
$ |
134,400 |
|
Accrued expenses and other current liabilities |
|
|
590,930 |
|
|
|
612,656 |
|
Accrued personnel costs |
|
|
170,035 |
|
|
|
208,602 |
|
Lease liabilities |
|
|
39,609 |
|
|
|
43,336 |
|
Deferred revenue |
|
|
307,708 |
|
|
|
253,686 |
|
Total current liabilities |
|
|
1,401,346 |
|
|
|
1,252,680 |
|
Deferred income taxes and taxes payable |
|
|
249,948 |
|
|
|
312,237 |
|
Lease liabilities |
|
|
111,869 |
|
|
|
138,378 |
|
Long-term debt, net of unamortized debt issuance costs |
|
|
645,549 |
|
|
|
645,117 |
|
Other noncurrent liabilities |
|
|
478,354 |
|
|
|
481,703 |
|
Total liabilities |
|
|
2,887,066 |
|
|
|
2,830,115 |
|
Equity: |
|
|
|
|
|
|
||
Amdocs Limited Shareholders' equity: |
|
|
|
|
|
|
||
Preferred Shares — Authorized 25,000 shares; £0.01 par value; 0 shares issued |
|
|
— |
|
|
|
— |
|
Ordinary Shares — Authorized 700,000 shares; £0.01 par value; 286,306 and 284,400 issued and 119,026 and 120,842 outstanding, respectively |
|
|
4,571 |
|
|
|
4,548 |
|
Additional paid-in capital |
|
|
4,217,048 |
|
|
|
4,105,900 |
|
Treasury stock, at cost 167,280 and 163,558 ordinary shares, respectively |
|
|
(7,066,288 |
) |
|
|
(6,731,789 |
) |
Accumulated other comprehensive loss |
|
|
(45,512 |
) |
|
|
(72,476 |
) |
Retained earnings |
|
|
6,498,559 |
|
|
|
6,211,586 |
|
Total Amdocs Limited Shareholders' equity |
|
|
3,608,378 |
|
|
|
3,517,769 |
|
Noncontrolling interests |
|
|
43,898 |
|
|
|
42,509 |
|
Total equity |
|
|
3,652,276 |
|
|
|
3,560,278 |
|
Total liabilities and equity |
|
$ |
6,539,342 |
|
|
$ |
6,390,393 |
|
The accompanying notes are an integral part of these consolidated financial statements.
3
AMDOCS LIMITED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollar and share amounts in thousands, except per share data)
|
|
Three months ended |
|
|
Nine months ended |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenue |
|
$ |
1,235,962 |
|
|
$ |
1,160,290 |
|
|
$ |
3,644,986 |
|
|
$ |
3,410,193 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenue |
|
|
804,007 |
|
|
|
748,214 |
|
|
|
2,356,341 |
|
|
|
2,206,189 |
|
Research and development |
|
|
92,162 |
|
|
|
89,479 |
|
|
|
277,162 |
|
|
|
258,488 |
|
Selling, general and administrative |
|
|
143,777 |
|
|
|
136,110 |
|
|
|
430,327 |
|
|
|
399,168 |
|
Amortization of purchased intangible assets and other |
|
|
13,302 |
|
|
|
17,173 |
|
|
|
41,555 |
|
|
|
53,237 |
|
Restructuring charges |
|
|
— |
|
|
|
— |
|
|
|
24,536 |
|
|
|
— |
|
|
|
|
1,053,248 |
|
|
|
990,976 |
|
|
|
3,129,921 |
|
|
|
2,917,082 |
|
Operating income |
|
|
182,714 |
|
|
|
169,314 |
|
|
|
515,065 |
|
|
|
493,111 |
|
Interest and other expense, net |
|
|
(4,421 |
) |
|
|
(7,811 |
) |
|
|
(12,322 |
) |
|
|
(18,992 |
) |
Gain from sale of a business |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,000 |
|
Income before income taxes |
|
|
178,293 |
|
|
|
161,503 |
|
|
|
502,743 |
|
|
|
484,119 |
|
Income tax expense |
|
|
18,178 |
|
|
|
33,037 |
|
|
|
62,447 |
|
|
|
63,554 |
|
Net income |
|
$ |
160,115 |
|
|
$ |
128,466 |
|
|
$ |
440,296 |
|
|
$ |
420,565 |
|
Net income attributable to noncontrolling interests |
|
|
687 |
|
|
|
— |
|
|
|
1,598 |
|
|
|
— |
|
Net income attributable to Amdocs Limited |
|
$ |
159,428 |
|
|
$ |
128,466 |
|
|
$ |
438,698 |
|
|
$ |
420,565 |
|
Basic earnings per share attributable to Amdocs Limited |
|
$ |
1.33 |
|
|
$ |
1.05 |
|
|
$ |
3.65 |
|
|
$ |
3.41 |
|
Diluted earnings per share attributable to Amdocs Limited |
|
$ |
1.32 |
|
|
$ |
1.04 |
|
|
$ |
3.62 |
|
|
$ |
3.39 |
|
Cash dividends declared per ordinary share |
|
$ |
0.435 |
|
|
$ |
0.395 |
|
|
$ |
1.265 |
|
|
$ |
1.150 |
|
The accompanying notes are an integral part of these consolidated financial statements.
4
AMDOCS LIMITED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(dollar amounts in thousands)
|
|
Three months ended |
|
|
Nine months ended |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net income |
|
$ |
160,115 |
|
|
$ |
128,466 |
|
|
$ |
440,296 |
|
|
$ |
420,565 |
|
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net change in fair value of cash flow hedges(1) |
|
|
8,774 |
|
|
|
(48,248 |
) |
|
|
21,971 |
|
|
|
(49,935 |
) |
Net change in fair value of available-for-sale securities(2) |
|
|
(552 |
) |
|
|
(3,264 |
) |
|
|
4,993 |
|
|
|
(16,219 |
) |
Other comprehensive income (loss), net of tax |
|
|
8,222 |
|
|
|
(51,512 |
) |
|
|
26,964 |
|
|
|
(66,154 |
) |
Comprehensive income |
|
$ |
168,337 |
|
|
$ |
76,954 |
|
|
$ |
467,260 |
|
|
$ |
354,411 |
|
Comprehensive income attributable to noncontrolling interests |
|
|
687 |
|
|
|
— |
|
|
|
1,598 |
|
|
|
— |
|
Comprehensive income attributable to Amdocs Limited |
|
$ |
167,650 |
|
|
$ |
76,954 |
|
|
$ |
465,662 |
|
|
$ |
354,411 |
|
The accompanying notes are an integral part of these consolidated financial statements.
5
AMDOCS LIMITED
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
(dollar and share amounts in thousands, except per share data)
|
|
Ordinary Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Shares |
|
|
Amount |
|
|
Additional |
|
|
Treasury |
|
|
Accumulated |
|
|
Retained |
|
|
Total |
|
|
Non- |
|
|
Total |
|
|||||||||
Balance as of March 31,2023 |
|
|
120,244 |
|
|
$ |
4,569 |
|
|
$ |
4,181,820 |
|
|
$ |
(6,937,426 |
) |
|
$ |
(53,734 |
) |
|
$ |
6,390,912 |
|
|
$ |
3,586,141 |
|
|
$ |
43,420 |
|
|
$ |
3,629,561 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
159,428 |
|
|
|
159,428 |
|
|
|
687 |
|
|
|
160,115 |
|
|
Other comprehensive income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,222 |
|
|
|
— |
|
|
|
8,222 |
|
|
|
— |
|
|
|
8,222 |
|
Comprehensive income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
167,650 |
|
|
|
687 |
|
|
|
168,337 |
|
Employee stock options exercised |
|
|
175 |
|
|
|
2 |
|
|
|
11,174 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,176 |
|
|
|
— |
|
|
|
11,176 |
|
Repurchase of shares |
|
|
(1,391 |
) |
|
|
— |
|
|
|
— |
|
|
|
(128,862 |
) |
|
|
— |
|
|
|
— |
|
|
|
(128,862 |
) |
|
|
— |
|
|
|
(128,862 |
) |
Cash dividends declared ($0.435 per ordinary share) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(51,781 |
) |
|
|
(51,781 |
) |
|
|
— |
|
|
|
(51,781 |
) |
Issuance of restricted stock, net of forfeitures |
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Equity-based compensation expense related to employees |
|
|
— |
|
|
|
— |
|
|
|
24,054 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
24,054 |
|
|
|
— |
|
|
|
24,054 |
|
Distribution to noncontrolling interests (2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(209 |
) |
|
|
(209 |
) |
Balance as of June 30,2023 |
|
|
119,026 |
|
|
$ |
4,571 |
|
|
$ |
4,217,048 |
|
|
$ |
(7,066,288 |
) |
|
$ |
(45,512 |
) |
|
$ |
6,498,559 |
|
|
$ |
3,608,378 |
|
|
$ |
43,898 |
|
|
$ |
3,652,276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Ordinary Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Shares |
|
|
Amount |
|
|
Additional |
|
|
Treasury |
|
|
Accumulated |
|
|
Retained |
|
|
Total |
|
|
Non- |
|
|
Total |
|
|||||||||
Balance as of March 31, 2022 |
|
|
122,840 |
|
|
$ |
4,542 |
|
|
$ |
4,036,591 |
|
|
$ |
(6,524,246 |
) |
|
$ |
(5,304 |
) |
|
$ |
6,050,099 |
|
|
$ |
3,561,682 |
|
|
$ |
42,509 |
|
|
$ |
3,604,191 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income (2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
128,466 |
|
|
|
128,466 |
|
|
|
— |
|
|
|
128,466 |
|
Other comprehensive loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(51,512 |
) |
|
|
— |
|
|
|
(51,512 |
) |
|
|
— |
|
|
|
(51,512 |
) |
Comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
76,954 |
|
|
|
— |
|
|
|
76,954 |
|
||||||
Employee stock options exercised |
|
|
363 |
|
|
|
4 |
|
|
|
22,115 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
22,119 |
|
|
|
— |
|
|
|
22,119 |
|
Repurchase of shares |
|
|
(1,221 |
) |
|
|
— |
|
|
|
— |
|
|
|
(99,993 |
) |
|
|
— |
|
|
|
— |
|
|
|
(99,993 |
) |
|
|
— |
|
|
|
(99,993 |
) |
Cash dividends declared ($0.395 per ordinary share) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(48,180 |
) |
|
|
(48,180 |
) |
|
|
— |
|
|
|
(48,180 |
) |
Issuance of restricted stock, net of forfeitures |
|
|
(21 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Equity-based compensation expense related to employees |
|
|
— |
|
|
|
— |
|
|
|
18,122 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,122 |
|
|
|
— |
|
|
|
18,122 |
|
Balance as of June 30, 2022 |
|
|
121,961 |
|
|
$ |
4,546 |
|
|
$ |
4,076,828 |
|
|
$ |
(6,624,239 |
) |
|
$ |
(56,816 |
) |
|
$ |
6,130,385 |
|
|
$ |
3,530,704 |
|
|
$ |
42,509 |
|
|
$ |
3,573,213 |
|
____________
The accompanying notes are an integral part of these consolidated financial statements.
6
AMDOCS LIMITED
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
(dollar and share amounts in thousands, except per share data)
|
|
Ordinary Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Shares |
|
|
Amount |
|
|
Additional |
|
|
Treasury |
|
|
Accumulated |
|
|
Retained |
|
|
Total |
|
|
Non- |
|
|
Total |
|
|||||||||
Balance as of September 30, 2022 |
|
|
120,842 |
|
|
$ |
4,548 |
|
|
$ |
4,105,900 |
|
|
$ |
(6,731,789 |
) |
|
$ |
(72,476 |
) |
|
$ |
6,211,586 |
|
|
$ |
3,517,769 |
|
|
$ |
42,509 |
|
|
|
3,560,278 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
438,698 |
|
|
|
438,698 |
|
|
|
1,598 |
|
|
|
440,296 |
|
|
Other comprehensive income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26,964 |
|
|
|
— |
|
|
|
26,964 |
|
|
|
— |
|
|
|
26,964 |
|
Comprehensive income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
465,662 |
|
|
|
1,598 |
|
|
|
467,260 |
|
Employee stock options exercised |
|
|
758 |
|
|
|
9 |
|
|
|
46,243 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46,252 |
|
|
|
— |
|
|
|
46,252 |
|
Repurchase of shares |
|
|
(3,721 |
) |
|
|
— |
|
|
|
— |
|
|
|
(334,499 |
) |
|
|
— |
|
|
|
— |
|
|
|
(334,499 |
) |
|
|
— |
|
|
|
(334,499 |
) |
Cash dividends declared ($1.265 per ordinary share) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(151,725 |
) |
|
|
(151,725 |
) |
|
|
— |
|
|
|
(151,725 |
) |
Issuance of restricted stock, net of forfeitures |
|
|
1,147 |
|
|
|
14 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
|
|
14 |
|
Equity-based compensation expense related to employees |
|
|
— |
|
|
|
— |
|
|
|
64,905 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
64,905 |
|
|
|
— |
|
|
|
64,905 |
|
Distribution to noncontrolling interests (2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(209 |
) |
|
|
(209 |
) |
Balance as of June 30, 2023 |
|
|
119,026 |
|
|
$ |
4,571 |
|
|
$ |
4,217,048 |
|
|
$ |
(7,066,288 |
) |
|
$ |
(45,512 |
) |
|
$ |
6,498,559 |
|
|
$ |
3,608,378 |
|
|
$ |
43,898 |
|
|
$ |
3,652,276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||