Revenues for the third quarter increased 22% to $533.6 million, compared
to $435.7 million for the same period last year after adjusting for revenue
from divested operations. Net income for the third quarter was $35.2 million,
an increase of 27% over actual net income of $27.8 million for the same
quarter last year.
Revenues for the nine months ended March 31, 2001 was $1.51 billion,
compared to adjusted revenues of $1.20 billion for the same period last year,
an increase of 25%. Net income for the nine months ended March 31, 2001 was
$97.7 million, an increase of 23%, compared to net income of $79.3 million for
the nine months ended March 31, 2000. Diluted earnings per share was
$1.80 for the nine months ended March 31, 2001, an increase of 20%, compared
to $1.50 for the same period last year.
Our third quarter performance was very solid, said Jeff Rich, ACS
President and Chief Executive Officer. Mr. Rich continued, We delivered
internal growth acceleration and exceeded consensus analysts EPS estimates.
Our new business wins continue to be very strong with approximately
$76 million of annual recurring new revenues being signed. Our recent
organizational changes create a more focused team to address the significant
opportunities that exist in our markets. We continue to believe that current
economic conditions are a catalyst for the outsourcing market and, given our
leadership position in the business process outsourcing marketplace, we are
well positioned to capitalize on those opportunities.
ACS’ third quarter results include the following key highlights:
After adjusting for revenues from divested operations, internally
generated revenue accelerated to 15% for the quarter. The remaining
7% revenue growth for the quarter resulted from acquisitions.
Operating margins increased significantly, from 9.8% in the prior
year quarter to 11.6% in the current quarter.
Pretax margins also increased from 9.1% in the prior year quarter to
10.8% in the current quarter.
Fully diluted earnings per share of 64 cents was one cent higher
than consensus First Call estimates. This is the 26th consecutive
quarter that ACS has met or exceeded these estimates and achieved a
double-digit earnings growth rate.
Earnings per share excluding goodwill amortization was 73 cents per
share and is approximately 14% higher than reported fully diluted
earnings per share.
Cash flow from operations for the quarter was very solid at approximately $55 million. On a year-to-date basis, cash flow from operations, excluding the effects of divestitures and first quarterlease buyouts, is in excess of $120 million.
We raised $317 million from our February 15, 2001 convertible debt
offering and paid down approximately $65 million on our revolving
line of credit and the balance is included in cash at
March 31, 2001.
New business bookings signed for the quarter represented
approximately $76 million of annualized new revenue. Year-to-date,
we have signed over $254 million in annual recurring new revenues
representing a 45% increase over the comparable prior year period.
