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Amdocs Limited Reports Fourth Quarter Fiscal 2020 Results

Amdocs Management LTD
·24-min read

Record Quarterly Revenue of $1.05 Billion
Expects Acceleration in Fiscal 2021 Revenue Growth to 4.0%-8.0% YoY as Reported and 3.5%-7.5% in Constant Currency

Accelerates Growth Strategy and Business Focus Around Cloud and 5G with Strategic Partnerships, Closing Openet Acquisition and the Expected Divestiture of OpenMarket for Approximately $300 Million

Fourth Quarter Fiscal 2020 Highlights

  • Closed the previously announced acquisition of Openet on August 11, 2020

  • Today signed an agreement for the divestiture of OpenMarket, an Amdocs subsidiary, for approximately $300 million cash with Infobip, a company in which One Equity Partners is the primary institutional investor

  • Revenue of $1,053 million. After adjusting for a positive impact from foreign currency movements of approximately $7 million compared to our guidance assumptions, and revenue from Openet, which was not included in the fourth quarter guidance range, revenue was slightly above the midpoint of the $1,015-$1,055 million guidance range

  • Record managed services revenue of $611 million, up 4.8% as compared to last year’s fourth fiscal quarter and equivalent to approximately 58% of total revenue

  • GAAP diluted EPS of $1.01, above the midpoint $0.95-$1.03 guidance range

  • Non-GAAP diluted EPS of $1.23, above the $1.16-$1.22 guidance range

  • GAAP operating income of $147 million; GAAP operating margin of 14.0%

  • Non-GAAP operating income of $181 million; non-GAAP operating margin of 17.2%

  • Quarterly free cash flow of $145 million, comprised of cash flow from operations of $205 million, less $60 million in net capital expenditures and other; normalized free cash flow of $161 million (1)

  • Record twelve-month backlog of $3.62 billion, up $140 million sequentially and up 3.7% as compared to last year’s fourth fiscal quarter

  • The board of directors approved a quarterly cash dividend of $0.3275 per share to be paid on January 22, 2021

  • The board of directors also approved a 10% increase in the Company’s quarterly cash dividend payment from $0.3275 per share to $0.36 per share, anticipated to be first paid in April 2021, subject to shareholder approval at the January 2021 annual meeting

ST. LOUIS, Nov. 10, 2020 (GLOBE NEWSWIRE) -- Amdocs Limited (NASDAQ: DOX) today reported operating results for the three months ended September 30, 2020.

“I am pleased to report a return to sequential revenue growth in our fourth fiscal quarter, primarily driven by healthy activity levels in North America and the ramp-up of new customer engagements in Europe, where we had our best-ever performance. At the operating level, we accelerated our R&D investments while maintaining consistent project execution and stable profitability. Amid the ongoing global pandemic, our sales momentum also accelerated, as reflected in our record 12-month backlog which grew $140 million sequentially and 3.7% year-over-year,” said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

Sheffer continued, “Over the last few months, we have taken several steps to accelerate our growth strategy around 5G and the cloud. The post-merger integration of Openet is proceeding well and we are happy to report a new award at AT&T, which has selected Openet’s 5G solution to quickly launch and monetize exciting new 5G services on the cloud. Additionally, we have signed a new multi-year strategic agreement with AWS as part of which we will bring our cloud-native BSS offerings and wide range of services to jointly address the rapidly growing cloud market in the coming years. As part of another move to focus on our strategy, we have also signed an agreement for the divestiture of OpenMarket for approximately $300 million cash with Infobip, a company in which One Equity Partners is the primary institutional investor. With this transaction, Amdocs is divesting a non-strategic asset in the mobile messaging domain and remaining laser-focused on our core strategic growth initiatives.”

Sheffer concluded, “Turning to our fiscal 2021 outlook, I am happy to report an expected acceleration in growth, with revenue projected to increase at more than twice the rate of last year in constant currency. This outlook is based on the visibility of our record 12-month backlog, the full-year consolidation of Openet and the ramp-up of customer activities across strategic growth areas, including 5G and the cloud.”

Revenue

Revenue for the fourth fiscal quarter ended September 30, 2020 was $1,053 million, up $27 million sequentially from the third fiscal quarter of 2020. Revenue was up 2.2% as reported and 1.8% in constant currency as compared to last year’s fourth fiscal quarter. Revenue for the fourth fiscal quarter of 2020 includes a positive impact from foreign currency movements of approximately $11 million relative to the third quarter of fiscal 2020. Revenue was slightly above the midpoint of Amdocs’ guidance after adjusting for the positive impact of approximately $7 million of foreign currency movements relative to guidance assumptions and revenue from Openet, which was not included in the fourth quarter guidance range.

Revenue for the fiscal year ended September 30, 2020, was $4.2 billion, up 2.0% from the last fiscal year and consistent with the high-end of Amdocs’ guidance range for growth of 1.1% to 2.1% year-over-year as reported. Adjusting for the negative impact of foreign currency movements, revenue was up 2.4% from the last fiscal year and consistent with the high-end of Amdocs’ guidance range for growth of 1.6% to 2.6% year-over-year.

Net Income and Earnings Per Share

The Company's GAAP net income for the fourth quarter of fiscal 2020 was $134.5 million, or $1.01 per diluted share, compared to GAAP net income of $122.0 million, or $0.90 per diluted share, in the prior fiscal year’s fourth quarter. Net income on a non-GAAP basis was $162.7 million, or $1.23 per diluted share, compared to non-GAAP net income of $147.1 million, or $1.08 per diluted share, in the fourth quarter of fiscal 2019. 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 and other, net of related tax effects, in the fourth quarter of fiscal 2020 and in the fourth quarter of fiscal 2019.

The Company's GAAP net income in fiscal 2020 was $497.8 million, or $3.71 per diluted share, compared to GAAP net income of $479.4 million, or $3.47 per diluted share, in fiscal 2019. Fiscal 2020 net income on a non-GAAP basis was $595.8 million, or $4.44 per diluted share, compared to non-GAAP net income of $595.1 million, or $4.31 per diluted share, in fiscal 2019. 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 and other, net of related tax effects, in fiscal years 2020 and 2019.

For further details of reconciliation of selected financial metrics from GAAP to Non-GAAP, please refer to the tables below.

Returning Cash to Shareholders

  • Quarterly Cash Dividend Program: On November 10, 2020, the Board approved the Company’s next quarterly cash dividend payment of $0.3275 per share and set December 31, 2020 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on January 22, 2021. The Board also approved a 10% increase in the Company’s quarterly cash dividend payment to $0.36 per share, which is anticipated to be first paid in April 2021, provided that the increase is approved by shareholders at the January 2021 annual general meeting of shareholders.

  • Share Repurchase Activity: Repurchased $91 million of ordinary shares during the fourth quarter of fiscal 2020.

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 $3.62 billion at the end of the fourth quarter of fiscal 2020, up $140 million from the end of the prior quarter and up 3.7% as compared to last year’s fourth fiscal quarter.

First Quarter Fiscal 2021 Outlook

  • Revenue of approximately $1,055-$1,095 million, assuming approximately $2 million sequential negative impact from foreign currency fluctuations as compared to the fourth quarter of fiscal 2020 and a full quarter revenue contribution from the acquisition of Openet

  • GAAP diluted EPS of approximately $0.85-$0.93

  • Non-GAAP diluted EPS of approximately $1.09-$1.15, excluding amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, and approximately $0.08-$0.10 per share of equity-based compensation expense, net of related tax effects

Full Year Fiscal 2021 Outlook

  • Revenue growth of 4.0%-8.0% year-over-year as reported

  • Revenue growth of 3.5%-7.5% year-over-year on a constant currency basis

  • Full year fiscal 2021 revenue guidance incorporates roughly 1.5% of growth from the acquisition of Openet, and an expected positive impact from foreign currency fluctuations of about 0.5% year-over-year

  • GAAP diluted earnings per share growth of roughly 1.5%-8.5% year-over-year

  • Non-GAAP diluted earnings per share growth of roughly 5.0%-9.0% 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 $0.32-$0.40 per share of equity-based compensation expense, net of related tax effects. The impact of the acquisition of Openet on Amdocs’ non-GAAP diluted earnings per share is expected to be neutral in fiscal year 2021, and accretive thereafter

  • Free cash flow of approximately $470 million, comprised of cash flow from operations, less net capital expenditures and other

  • Normalized free cash flow of approximately $620 million; normalized free cash flow excludes capital expenditure of up to $150 million related to the new campus development in Israel, and other items

  • Divestiture of OpenMarket is expected to close within the next few months, at which time the full fiscal year 2021 outlook will be updated, as the current 2021 outlook includes anticipated full year results from OpenMarket

Our first fiscal quarter 2021 and full year fiscal 2021 outlook takes into consideration the Company’s current expectations regarding macro and industry specific risks and various uncertainties and certain assumptions that we will discuss on our earnings conference call. However, we note that market dynamics continue to shift rapidly and we cannot predict all possible outcomes, including those resulting from the COVID-19 pandemic, which has created, and continues to create, a significant amount of uncertainty, and from T-Mobile’s completed merger with Sprint, or from other current and potential customer consolidation activity.

Conference Call Details
Amdocs will host a conference call on November 10, 2020 at 5:00 p.m. Eastern Time to discuss the Company's fourth quarter of fiscal 2020 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 4156067. 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 and normalized 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 interest and other expenses, net, 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;

  • other; and

  • tax effects related to the above.

Free cash flow equals cash generated by operating activities less net capital expenditures and other. Normalized free cash flow, a measure of our operating performance, is further adjusted to exclude net capital expenditures related to the new campus development, payments for previously expensed restructuring charges, payments for legal dispute settlement, and payments of acquisition related liabilities. 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 and normalized 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 interest and other expenses, net, 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, changes in certain acquisition-related liabilities measured at fair value, non-recurring and unusual charges, equity-based compensation expense, other 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, interest and other expenses, net, 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

About Amdocs
Amdocs’ purpose is to enrich lives and progress society, using creativity and technology to build a better connected world. Amdocs and its 26,000 employees partner with the leading players in the communications and media industry, enabling next-generation experiences in 85 countries. Our cloud-native, open and dynamic portfolio of digital solutions, platforms and services brings greater choice, faster time to market and flexibility, to better meet the evolving needs of our customers as they drive growth, transform and take their business to the cloud. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.2 billion in fiscal 2020.

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, the duration and severity of the COVID-19 pandemic, and its impact on the global economy, 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, 2019 filed on December 16, 2019 and our Form 6-K furnished for the first quarter of fiscal 2020 on February 18, 2020 and for the second quarter of fiscal 2020 on May 18, 2020 and for the third quarter of fiscal 2020 on August 17, 2020.

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,

2020

2019

2020

2019

Revenue

$

1,052,948

$

1,030,253

$

4,169,039

$

4,086,669

Operating expenses:

Cost of revenue

703,556

667,129

2,755,563

2,653,172

Research and development

75,843

70,109

282,042

273,936

Selling, general and administrative

106,352

125,046

458,539

492,457

Amortization of purchased intangible assets and other

20,259

23,815

78,137

97,358

906,010

886,099

3,574,281

3,516,923

Operating income

146,938

144,154

594,758

569,746

Interest and other (expense) income, net

(6,377

)

2,444

(11,436

)

(1,859

)

Income before income taxes

140,561

146,598

583,322

567,887

Income taxes

6,098

24,571

85,482

88,441

Net income

$

134,463

$

122,027

$

497,840

$

479,446

Basic earnings per share

$

1.02

$

0.90

$

3.73

$

3.49

Diluted earnings per share

$

1.01

$

0.90

$

3.71

$

3.47

Basic weighted average number of shares outstanding

132,330

135,317

133,590

137,418

Diluted weighted average number of shares outstanding

132,661

136,151

134,232

138,108

Cash dividends declared per share

$

0.3275

$

0.285

$

1.2675

$

1.105


AMDOCS LIMITED
Selected Financial Metrics
(In thousands, except per share data)

Three months ended

Fiscal year ended

September 30,

September 30,

2020

2019

2020

2019

Revenue

$

1,052,948

$

1,030,253

$

4,169,039

$

4,086,669

Non-GAAP operating income

181,082

177,989

715,022

707,889

Non-GAAP net income

162,716

147,137

595,758

595,089

Non-GAAP diluted earnings per share

$

1.23

$

1.08

$

4.44

$

4.31

Diluted weighted average number of shares outstanding

132,661

136,151

134,232

138,108


Free Cash Flows and Normalized Free Cash Flow
(In thousands)

Three months ended

Fiscal year ended

September 30,

September 30,

2020

2019

2020

2019

Net Cash Provided by Operating Activities

$

204,680

$

213,625

$

658,136

$

656,377

Purchases of property and equipment, net (*)

(59,555

)

(34,325

)

(205,510

)

(128,086

)

Free Cash Flow

145,125

179,300

452,626

528,291

Payments for legal dispute settlement

-

-

-

55,000

Payment of acquisition related liabilities

-

-

9,417

7,667

Payments for previously expensed restructuring charges

214

1,233

2,143

15,627

Net capital expenditures related to the new campus development (*)

15,975

9,101

62,727

6,895

Normalized Free Cash Flow

$

161,314

$

189,634

$

526,913

$

613,480

___________________________________________________________________________________________________________

(*) The amounts under "Purchase of property and equipment, net” and the amounts under “Net capital expenditures related to the new campus development”, include proceeds from sale of property and equipment of $194 and $151, for the fiscal year ended September 30, 2020 and 2019, respectively, and proceeds of $9,676 relating to the refund of betterment levy, for the fiscal year ended September 30, 2019 ($4,776 of which was a refund to the noncontrolling interests).


AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
(In thousands)

Three months ended
September 30, 2020

Reconciliation items

GAAP

Amortization
of purchased
intangible
assets and
other

Equity based
compensation
expense

Changes in certain
acquisitions related
liabilities measured
at fair value

Other

Tax
effect

Non-GAAP

Operating expenses:

Cost of revenue

$

703,556

$

-

$

(4,981

)

$

(4,021

)

$

-

$

-

$

694,554

Research and development

75,843

-

(821

)

-

-

-

75,022

Selling, general and administrative

106,352

-

(4,062

)

-

-

-

102,290

Amortization of purchased intangible assets and other

20,259

(20,259

)

-

-

-

-

-

Total operating expenses

906,010

(20,259

)

(9,864

)

(4,021

)

-

-

871,866

Operating income

146,938

20,259

9,864

4,021

-

-

181,082

Interest and other (expense) income, net

(6,377

)

-

-

-

(600

)

-

(6,977

)

Income taxes

6,098

-

-

-

-

5,291

11,389

Net income

$

134,463

$

20,259

$

9,864

$

4,021

$

(600

)

$

(5,291

)

$

162,716


Three months ended
September 30, 2019

Reconciliation items

GAAP

Amortization
of purchased
intangible
assets and
other

Equity based compensation
expense

Changes in certain
acquisitions related
liabilities measured
at fair value

Other

Tax
effect

Non-GAAP

Operating expenses:

Cost of revenue

$

667,129

$

-

$

(4,618

)

$

(2,036

)

$

-

$

-

$

660,475

Research and development

70,109

-

(757

)

-

-

-

69,352

Selling, general and administrative

125,046

-

(2,609

)

-

-

-

122,437

Amortization of purchased intangible assets and other

23,815

(23,815

)

-

-

-

-

-

Total operating expenses

886,099

(23,815

)

(7,984

)

(2,036

)

-

-

852,264

Operating income

144,154

23,815

7,984

2,036

-

-

177,989

Interest and other income (expense), net

2,444

-

-

-

(4,964

)

-

(2,520

)

Income taxes

24,571

-

-

-

-

3,761

28,332

Net income

$

122,027

$

23,815

$

7,984

$

2,036

$

(4,964

)

$

(3,761

)

$

147,137


AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
(In thousands)

Fiscal year ended
September 30, 2020

Reconciliation items

GAAP

Amortization
of purchased
intangible
assets and
other

Equity based
compensation
expense

Changes in certain
acquisitions related
liabilities measured
at fair value

Other

Tax
effect

Non-GAAP

Operating expenses:

Cost of revenue

$

2,755,563

$

-

$

(20,005

)

$

307

$

-

$

-

$

2,735,865

Research and development

282,042

-

(3,058

)

-

-

-

278,984

Selling, general and administrative

458,539

-

(19,371

)

-

-

-

439,168

Amortization of purchased intangible assets and other

78,137

(78,137

)

-

-

-

-

-

Total operating expenses

3,574,281

(78,137

)

(42,434

)

307

-

-

3,454,017

Operating income

594,758

78,137

42,434

(307

)

-

-

715,022

Interest and other (expense) income, net

(11,436

)

-

-

-

(600

)

-

(12,036

)

Income taxes

85,482

-

-

-

-

21,746

107,228

Net income

$

497,840

$

78,137

$

42,434

$

(307

)

$

(600

)

$

(21,746

)

$

595,758


Fiscal year ended
September 30, 2019

Reconciliation items

GAAP

Amortization
of purchased
intangible
assets and
other

Equity based
compensation
expense

Changes in certain
acquisitions related
liabilities measured
at fair value

Other

Tax
effect

Non-GAAP

Operating expenses:

Cost of revenue

$

2,653,172

$

-

$

(19,879

)

$

(2,235

)

$

-

$

-

$

2,631,058

Research and development

273,936

-

(2,714

)

-

-

-

271,222

Selling, general and administrative

492,457

-

(15,957

)

-

-

-

476,500

Amortization of purchased intangible assets and other

97,358

(97,358

)

-

-

-

-

-

Total operating expenses

3,516,923

(97,358

)

(38,550

)

(2,235

)

-

-

3,378,780

Operating income

569,746

97,358

38,550

2,235

-

-

707,889

Interest and other income (expense), net

(1,859

)

-

-

-

(2,939

)

-

(4,798

)

Income taxes

88,441

-

-

-

-

19,561

108,002

Net income

$

479,446

$

97,358

$

38,550

$

2,235

$

(2,939

)

$

(19,561

)

$

595,089


AMDOCS LIMITED
Condensed Consolidated Balance Sheets
(In thousands)

As of

September 30,
2020

September 30,
2019

ASSETS

Current assets

Cash and cash equivalents

$

983,188

$

471,632

Short-term interest-bearing investments

752

-

Accounts receivable, net, including unbilled of $175,548 and $227,061, respectively

861,033

987,858

Prepaid expenses and other current assets

229,604

216,084

Total current assets

2,074,577

1,675,574

Property and equipment, net

607,951

525,314

Lease assets

295,494

-

Goodwill and other intangible assets, net

2,874,979

2,667,997

Other noncurrent assets

488,620

423,941

Total assets

$

6,341,621

$

5,292,826

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities

Accounts payable, accruals and other

$

930,259

$

1,089,748

Short-term financing arrangements

100,000

-

Lease liabilities

59,100

-

Deferred revenue

126,841

118,182

Total current liabilities

1,216,200

1,207,930

Lease liabilities

230,076

-

Long-term debt, net of unamortized debt issuance costs

644,023

-

Other noncurrent liabilities

586,167

542,430

Total Amdocs Limited Shareholders’ equity

3,622,646

3,499,957

Noncontrolling interests

42,509

42,509

Total equity

3,665,155

3,542,466

Total liabilities and equity

$

6,341,621

$

5,292,826


AMDOCS LIMITED
Consolidated Statements of Cash Flows
(In thousands)

Fiscal year ended
September 30,

2020

2019

Cash Flow from Operating Activities:

Net income

$

497,840

$

479,446

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

Depreciation and amortization

198,409

205,772

Amortization of debt issuance costs

144

-

Equity-based compensation expense

42,434

38,550

Deferred income taxes

30,239

(13,950

)

Loss from short-term interest-bearing investments

-

737

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

Accounts receivable, net

134,584

6,589

Prepaid expenses and other current assets

(10,815

)

25,907

Other noncurrent assets

(23,329

)

(1,635

)

Lease assets and liabilities, net

(7,881

)

-

Accounts payable, accrued expenses and accrued personnel

(190,354

)

(60,042

)

Deferred revenue

(15,184

)

(37,855

)

Income taxes payable, net

(9,281

)

6,025

Other noncurrent liabilities

11,330

6,833

Net cash provided by operating activities

658,136

656,377

Cash Flow from Investing Activities:

Purchases of property and equipment, net (*)

(205,510

)

(128,086

)

Proceeds from sale of short-term interest-bearing investments

-

101,287

Purchase of short-term interest-bearing investments

(753

)

-

Net cash paid for business and intangible assets acquisitions

(249,358

)

(60,572

)

Other

(6,104

)

615

Net cash used in investing activities

(461,725

)

(86,756

)

Cash Flow from Financing Activities:

Borrowings under financing arrangements

450,000

-

Payments of financing arrangements

(350,000

)

-

Proceeds from issuance of debt, net

643,919

-

Repurchase of shares

(360,912

)

(398,057

)

Proceeds from employee stock options exercised

97,850

41,483

Payments of dividends

(164,061

)

(147,616

)

Investment by noncontrolling interests, net (*)

-

(4,776

)

Payment of contingent consideration from a business acquisition

(1,411

)

(7,470

)

Other

(240

)

(336

)

Net cash provided by (used in) financing activities

315,145

(516,772

)

Net increase in cash and cash equivalents

511,556

52,849

Cash and cash equivalents at beginning of period

471,632

418,783

Cash and cash equivalents at end of period

$

983,188

$

471,632

___________________________________________________________________________________________________________

(*) The amounts under "Purchase of property and equipment, net”, include proceeds from sale of property and equipment of $194 and $151, for the fiscal year ended September 30, 2020 and 2019, respectively, and proceeds of $9,676 relating to the refund of betterment levy for the fiscal year ended September 30, 2019 ($4,776 of which was a refund to the noncontrolling interests).


AMDOCS LIMITED
Supplementary Information
(In millions)

Three months ended

September 30,
2020

June 30,
2020

March 31,
2020

December 31,
2019

September 30,
2019

North America

$

681.6

$

685.9

$

691.3

$

662.1

$

644.2

Europe

165.3

145.4

148.3

154.7

156.1

Rest of the World

206.0

194.9

208.3

225.2

230.0

Total Revenue

$

1,052.9

$

1,026.2

$

1,047.9

$

1,042.0

$

1,030.3

Three months ended

September 30,
2020

June 30,
2020

March 31,
2020

December 31,
2019

September 30,
2019

Managed Services Revenue

$

610.5

$

604.5

$

604.0

$

579.7

$

583.3


As of

September 30,
2020

June 30,
2020

March 31,
2020

December 31,
2019

September 30,
2019

12-Month Backlog

$

3,620

$

3,480

$

3,460

$

3,520

$

3,490