SEC Info℠ | Home | Search | My Interests | Help | Sign In | Please Sign In | ||||||||||||||||||||
As Of Filer Filing For·On·As Docs:Size 8/08/19 DXC Technology Co 8-K:2,9 8/08/19 2:477K |
Document/Exhibit Description Pages Size 1: 8-K Current Report HTML 23K 2: EX-99.1 Miscellaneous Exhibit HTML 171K
Exhibit |
Moved on Business Wire | |
• | Q1 earnings per share from continuing operations was $0.61, including the cumulative impact of certain items of $(1.13) per share, reflecting restructuring costs, transaction, separation and integration-related costs, and amortization of acquired intangible assets |
• | Q1
non-GAAP earnings per share was $1.74 |
• | Q1 income from continuing operations was $168 million, including the cumulative impact of certain items of $(304) million, reflecting restructuring costs, transaction, separation and integration-related costs, and amortization of acquired intangible assets |
• | Q1 non-GAAP income from continuing operations was $472 million
|
• | Q1 EBIT of $267 million, adjusted for certain items is $652 million and adjusted EBIT margin was 13.3%, compared with 15.2% in the prior year |
• | Q1 net cash used in operating activities was $66 million |
• | Q1
adjusted free cash flow was $72 million |
• | Diluted earnings per share from continuing operations was $0.61 in the first quarter, including $(0.42) per share of restructuring costs, $(0.31) per share of transaction, separation and integration-related costs, and $(0.40) per
share of amortization of acquired intangible assets. This compares with $0.78 in the year ago period. |
• | Non-GAAP diluted earnings per share from continuing operations was $1.74. This compares with $1.93 in the year ago period. |
• | Revenue in the first quarter was $4,890 million. Revenue decreased 7.4% compared
with $5,282 million in the prior year. |
• | Income from continuing operations before income taxes was $206 million in the first quarter, including $(142) million of restructuring costs, $(105) million of transaction, separation and integration-related costs, and $(138) million of amortization of acquired intangibles. This compares with $360 million in the year ago period. |
• | Non-GAAP
income from continuing operations before income taxes was $591 million compared with $750 million in the year ago period. |
• | Net income was $168 million for the first quarter, including $(114) million of restructuring costs, $(83) million of transaction, separation and integration-related costs and $(107) million of amortization of acquired intangibles. This compares with $266 million in the prior year period. |
• | Non-GAAP
net income was $472 million. |
• | Adjusted EBIT was $652 million in the first quarter compared with $803 million in the prior year. Adjusted EBIT margin was 13.3% compared with 15.2% in the year ago quarter. |
• | Net
cash used in operating activities was $66 million in the first quarter, compared with net cash provided by operating activities of $369 million in the year ago period. |
• | Adjusted free cash flow was $72 million in the first quarter. |
Three Months Ended | ||||||||
(in millions, except per-share amounts) | ||||||||
Revenues | $ | 4,890 | $ | 5,282 | ||||
Costs
of services | 3,622 | 3,867 | ||||||
Selling, general and administrative | 507 | 440 | ||||||
Depreciation
and amortization | 470 | 471 | ||||||
Restructuring costs | 142 | 185 | ||||||
Interest
expense | 91 | 85 | ||||||
Interest income | (30 | ) | (32 | ) | ||||
Other
income, net | (118 | ) | (94 | ) | ||||
Total costs and expenses | 4,684 | 4,922 | ||||||
Income
from continuing operations before income taxes | 206 | 360 | ||||||
Income tax expense | 38 | 129 | ||||||
Income
from continuing operations | 168 | 231 | ||||||
Income from discontinued operations, net of tax | — | 35 | ||||||
Net
income | 168 | 266 | ||||||
Less: net income attributable to non-controlling interest, net of tax | 5 | 7 | ||||||
Net
income attributable to DXC common stockholders | $ | 163 | $ | 259 | ||||
Income
per common share: | ||||||||
Basic: | ||||||||
Continuing operations | $ | 0.61 | $ | 0.79 | ||||
Discontinued
operations | — | 0.12 | ||||||
$ | 0.61 | $ | 0.91 | |||||
Diluted: | ||||||||
Continuing
operations | $ | 0.61 | $ | 0.78 | ||||
Discontinued operations | — | 0.12 | ||||||
$ | 0.61 | $ | 0.90 | |||||
Cash
dividend per common share | $ | 0.21 | $ | 0.19 | ||||
Weighted
average common shares outstanding for: | ||||||||
Basic EPS | 267.00 | 284.44 | ||||||
Diluted EPS | 268.97 | 289.30 |
As of | ||||||||
(in millions) | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 1,868 | $ | 2,899 | ||||
Receivables,
net | 5,234 | 5,181 | ||||||
Prepaid expenses | 728 | 627 | ||||||
Other
current assets | 360 | 359 | ||||||
Total current assets | 8,190 | 9,066 | ||||||
Intangible
assets, net | 6,468 | 5,939 | ||||||
Operating right-of-use assets, net | 1,591 | — | ||||||
Goodwill | 8,806 | 7,606 | ||||||
Deferred
income taxes, net | 356 | 355 | ||||||
Property and equipment, net | 3,628 | 3,179 | ||||||
Other
assets | 3,538 | 3,429 | ||||||
Total Assets | $ | 32,577 | $ | 29,574 | ||||
Liabilities | ||||||||
Short-term
debt and current maturities of long-term debt | $ | 1,511 | $ | 1,942 | ||||
Accounts payable | 1,517 | 1,666 | ||||||
Accrued
payroll and related costs | 746 | 652 | ||||||
Current operating lease liabilities | 586 | — | ||||||
Accrued
expenses and other current liabilities | 3,183 | 3,355 | ||||||
Deferred revenue and advance contract payments | 1,609 | 1,630 | ||||||
Income
taxes payable | 186 | 208 | ||||||
Total current liabilities | 9,338 | 9,453 | ||||||
Long-term
debt, net of current maturities | 7,893 | 5,470 | ||||||
Non-current deferred revenue | 309 | 256 | ||||||
Non-current
operating lease liabilities | 1,129 | — | ||||||
Non-current income tax liabilities and deferred tax liabilities | 1,281 | 1,184 | ||||||
Other
long-term liabilities | 1,410 | 1,486 | ||||||
Total Liabilities | 21,360 | 17,849 | ||||||
Total
Equity | 11,217 | 11,725 | ||||||
Total Liabilities and Equity | $ | 32,577 | $ | 29,574 |
Three Months Ended | ||||||||
(in millions) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 168 | $ | 266 | ||||
Adjustments
to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 474 | 509 | ||||||
Operating
right-of-use expense | 176 | — | ||||||
Share-based compensation | 18 | 22 | ||||||
Gain
on dispositions | (8 | ) | (46 | ) | ||||
Unrealized foreign currency exchange gains | (14 | ) | (16 | ) | ||||
Other
non-cash charges, net | (5 | ) | 12 | |||||
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | ||||||||
Increase in assets | (335 | ) | (300 | ) | ||||
Decrease
in operating lease liability | (174 | ) | — | |||||
Decrease in other liabilities | (366 | ) | (78 | ) | ||||
Net
cash (used in) provided by operating activities | (66 | ) | 369 | |||||
Cash flows from investing activities: | ||||||||
Purchases
of property and equipment | (105 | ) | (79 | ) | ||||
Payments for transition and transformation contract costs | (72 | ) | (92 | ) | ||||
Software
purchased and developed | (63 | ) | (49 | ) | ||||
Payments for acquisitions, net of cash acquired | (1,911 | ) | (43 | ) | ||||
Business
dispositions | — | (65 | ) | |||||
Cash collections related to deferred purchase price receivable | 371 | 137 | ||||||
Proceeds
from sale of assets | 21 | 19 | ||||||
Short-term investing | (75 | ) | — | |||||
Other
investing activities, net | 12 | (8 | ) | |||||
Net cash used in investing activities | (1,822 | ) | (180 | ) | ||||
Cash
flows from financing activities: | ||||||||
Borrowings of commercial paper | 1,401 | 633 | ||||||
Repayments of commercial paper | (1,401 | ) | (633 | ) | ||||
Borrowings
on long-term debt, net of discount | 2,198 | 483 | ||||||
Principal payments on long-term debt | (509 | ) | (1,278 | ) | ||||
Payments
on finance leases and borrowings for asset financing | (210 | ) | (259 | ) | ||||
Borrowings for USPS spin transaction | — | 1,114 | ||||||
Proceeds
from stock options and other common stock transactions | 7 | 9 | ||||||
Taxes paid related to net share settlements of share-based compensation awards | (12 | ) | (1 | ) | ||||
Repurchase
of common stock and advance payment for accelerated share repurchase | (500 | ) | (314 | ) | ||||
Dividend payments | (51 | ) | (51 | ) | ||||
Other
financing activities, net | (36 | ) | (3 | ) | ||||
Net cash provided by (used in) financing activities | 887 | (300 | ) | |||||
Effect
of exchange rate changes on cash and cash equivalents | (30 | ) | (39 | ) | ||||
Net decrease in cash and cash equivalents | (1,031 | ) | (150 | ) | ||||
Cash
and cash equivalents at beginning of year | 2,899 | 2,729 | ||||||
Cash and cash equivalents at end of period | $ | 1,868 | $ | 2,579 |
Segment Revenue | |||||||||||||
(in
millions) | % Change | % Change in Constant Currency | |||||||||||
Global Business Services | $ | 2,159 | $ | 2,213 | (2.4 | )% | 0.5% | ||||||
Global
Infrastructure Services | 2,731 | 3,069 | (11.0 | )% | (7.6)% | ||||||||
Total Revenues | $ | 4,890 | $ | 5,282 | (7.4 | )% | (4.2)% |
Segment
Profit | ||||||||
Three Months Ended | ||||||||
(in millions) | ||||||||
Profit | ||||||||
GBS profit | $ | 366 | $ | 403 | ||||
GIS
profit | 340 | 474 | ||||||
All other loss | (54 | ) | (74 | ) | ||||
Interest
income | 30 | 32 | ||||||
Interest expense | (91 | ) | (85 | ) | ||||
Restructuring
costs | (142 | ) | (185 | ) | ||||
Transaction, separation and integration-related costs | (105 | ) | (70 | ) | ||||
Amortization
of acquired intangible assets | (138 | ) | (135 | ) | ||||
Income from continuing operations before income taxes | $ | 206 | $ | 360 | ||||
Segment
profit margins | ||||||||
GBS | 17.0 | % | 18.2 | % | ||||
GIS | 12.4 | % | 15.4 | % |
• | Restructuring costs - reflects costs, net of reversals, related to workforce optimization and real estate
charges. |
• | Transaction, separation and integration-related costs - reflects costs related to integration planning, financing, and advisory fees associated with the HPES Merger and other acquisitions and costs related to the separation of USPS. |
• | Amortization of acquired intangible assets - reflects amortization of intangible assets acquired through business combinations. |
• | Tax
adjustment - reflects the estimated non-recurring benefit of the Tax Cuts and Jobs Act of 2017 for fiscal 2019. |
Three
Months Ended | ||||||||
(in millions) | ||||||||
Net income | $ | 168 | $ | 266 | ||||
Income
from discontinued operations, net of taxes | — | (35 | ) | |||||
Income tax expense | 38 | 129 | ||||||
Interest
income | (30 | ) | (32 | ) | ||||
Interest expense | 91 | 85 | ||||||
EBIT | 267 | 413 | ||||||
Restructuring
costs | 142 | 185 | ||||||
Transaction, separation, and integration-related costs | 105 | 70 | ||||||
Amortization
of acquired intangible assets | 138 | 135 | ||||||
Adjusted EBIT | $ | 652 | $ | 803 | ||||
Adjusted
EBIT margin | 13.3 | % | 15.2 | % | ||||
EBIT margin | 5.5 | % | 7.8 | % |
(in millions) | Three Months Ended June 30, 2019 | |||
Net cash used in operating activities | $ | (66 | ) | |
Net
cash used in investing activities (1) | (1,747 | ) | ||
Acquisitions, net of cash acquired | 1,911 | |||
Payments on capital leases and other long-term asset financings | (210 | ) | ||
Payments
on transaction, separation and integration-related costs | 94 | |||
Payments on restructuring costs | 92 | |||
Sale of accounts receivables | (2 | ) | ||
Adjusted free
cash flow | $ | 72 |
Three Months Ended June 30,
2019 | ||||||||||||||||||||
(in millions, except per-share amounts) | As Reported | Restructuring Costs | Transaction, Separation and Integration-Related Costs | Amortization of Acquired Intangible Assets | Non-GAAP Results | |||||||||||||||
Costs
of services (excludes depreciation and amortization and restructuring costs) | $ | 3,622 | $ | — | $ | — | $ | — | $ | 3,622 | ||||||||||
Selling,
general and administrative (excludes depreciation and amortization and restructuring costs) | 507 | — | (105 | ) | — | 402 | ||||||||||||||
Income
from continuing operations before income taxes | 206 | 142 | 105 | 138 | 591 | |||||||||||||||
Income
tax expense | 38 | 28 | 22 | 31 | 119 | |||||||||||||||
Net
income | 168 | 114 | 83 | 107 | 472 | |||||||||||||||
Less:
net income attributable to non-controlling interest, net of tax | 5 | — | — | — | 5 | |||||||||||||||
Net
income attributable to DXC common stockholders | $ | 163 | $ | 114 | $ | 83 | $ | 107 | $ | 467 | ||||||||||
Effective
tax rate | 18.4 | % | 20.1 | % | ||||||||||||||||
Basic
EPS from continuing operations | $ | 0.61 | $ | 0.43 | $ | 0.31 | $ | 0.40 | $ | 1.75 | ||||||||||
Diluted
EPS from continuing operations | $ | 0.61 | $ | 0.42 | $ | 0.31 | $ | 0.40 | $ | 1.74 | ||||||||||
Weighted
average common shares outstanding for: | ||||||||||||||||||||
Basic EPS | 267.00 | 267.00 | 267.00 | 267.00 | 267.00 | |||||||||||||||
Diluted
EPS | 268.97 | 268.97 | 268.97 | 268.97 | 268.97 |
Three
Months Ended June 30, 2018 | ||||||||||||||||||||||||
(in millions, except per-share amounts) | As Reported | Restructuring Costs | Transaction, Separation and Integration-Related Costs | Amortization of Acquired Intangible Assets | Tax
Adjustment | Non-GAAP Results | ||||||||||||||||||
Costs of services (excludes depreciation and amortization and restructuring costs) | $ | 3,867 | $ | — | $ | — | $ | — | $ | — | $ | 3,867 | ||||||||||||
Selling,
general and administrative (excludes depreciation and amortization and restructuring costs) | 440 | — | (70 | ) | — | — | 370 | |||||||||||||||||
Income
from continuing operations before income taxes | 360 | 185 | 70 | 135 | — | 750 | ||||||||||||||||||
Income
tax expense | 129 | 41 | 16 | 33 | (33 | ) | 186 | |||||||||||||||||
Income
from continuing operations | 231 | 144 | 54 | 102 | 33 | 564 | ||||||||||||||||||
Income
from discontinued operations, net of tax | 35 | — | — | — | — | 35 | ||||||||||||||||||
Net
income | 266 | 144 | 54 | 102 | 33 | 599 | ||||||||||||||||||
Less:
net income attributable to non-controlling interest, net of tax | 7 | — | — | — | — | 7 | ||||||||||||||||||
Net
income attributable to DXC common stockholders | $ | 259 | $ | 144 | $ | 54 | $ | 102 | $ | 33 | $ | 592 | ||||||||||||
Effective
Tax Rate | 35.8 | % | 24.8 | % | ||||||||||||||||||||
Basic
EPS from continuing operations | $ | 0.79 | $ | 0.51 | $ | 0.19 | $ | 0.36 | $ | 0.12 | $ | 1.96 | ||||||||||||
Diluted
EPS from continuing operations | $ | 0.78 | $ | 0.50 | $ | 0.19 | $ | 0.35 | $ | 0.11 | $ | 1.93 | ||||||||||||
Weighted
average common shares outstanding for: | ||||||||||||||||||||||||
Basic EPS | 284.44 | 284.44 | 284.44 | 284.44 | 284.44 | 284.44 | ||||||||||||||||||
Diluted
EPS | 289.30 | 289.30 | 289.30 | 289.30 | 289.30 | 289.30 |
This ‘8-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
8/15/19 | DEF 14A | |||
Filed on / For Period end: | 8/8/19 | |||
6/30/19 | ||||
3/31/19 | 10-K, 5, ARS, NT 10-K | |||
6/30/18 | 10-Q | |||
List all Filings |