- Revenues of $4.03 billion, down 11.6% as compared to prior
year, and down 2.4% on an organic basis
- Diluted EPS was $(0.74) compared to $(0.96) in the prior year
quarter. Non-GAAP diluted EPS was $0.90, up 41% compared to $0.64
in Q2 FY21
- Cash flow from operations was $563 million and free cash flow
was $404 million in the second quarter
- Increasing FY22 Non-GAAP diluted EPS and increasing FY22
Adjusted EBIT margin guidance ranges. Reducing FY22 revenue
guidance range due to foreign exchange fluctuations
- Bookings of $3.7 billion and book-to-bill ratio of 0.91x in Q2
FY22
DXC Technology (NYSE: DXC) today reported results for the second
quarter fiscal year 2022.
“We are clearly executing on 'the build the foundation phase' of
our playbook. I am particularly pleased with the progress that we
have made in delivering on our financial foundation, which includes
decreasing our debt levels, lowering restructuring and TSI expense,
increasing our Adjusted EBIT margins and Non-GAAP EPS and
delivering strong free cash flow,” said Mike Salvino, DXC President
and Chief Executive Officer. “In addition, our customers are at the
highest level of satisfaction since I have been here, and based on
our September engagement survey, our colleagues are engaged and
motivated. I remain encouraged by our improving organic revenue
growth trends, and in particular, the progress we are making in
driving organic growth in Global Business Services and the
improving organic revenue trajectory of our Global Infrastructure
Services.”
Financial Highlights(1)
Q2 FY22
Q2 FY21
Revenue
$
4,027
$
4,554
YoY Revenue Growth
(11.6)%
(6.1)%
YoY Organic Revenue Growth (2)
(2.4)%
(9.1)%
Net Loss
$
(187)
$
(246)
EBIT
$
(203)
$
(235)
EBIT Margin %
(5.0)%
(5.2)%
Adjusted EBIT(2)
$
346
$
283
Adjusted EBIT Margin %
8.6%
6.2%
Loss Per Share (Diluted)
$
(0.74)
$
(0.96)
Non-GAAP EPS (Diluted) (2)
$
0.90
$
0.64
Book-to-Bill
0.91x
1.08x
(1)
In millions, except per-share amounts
(2)
Reconciliation of GAAP to Non-GAAP
measures provided in Non-GAAP Results.
Financial Highlights - Second Quarter of Fiscal Year
2022
Revenue was $4.03 billion, down 11.6% as compared to prior year,
and down 2.4% on an organic basis. Second quarter revenues came in
below the previous guidance range, as the strengthening of the U.S.
dollar reduced second quarter fiscal year 2022 revenues by $59
million as compared to the currency rates used in our prior
earnings guidance.
Net loss was $(187) million compared to $(246) million in the
prior year quarter. EBIT was $(203) million or (5.0)% of sales. Net
loss and EBIT in the quarter included the following items:
amortization of intangible assets of $110 million, debt
extinguishment costs of $281 million, restructuring costs of $145
million, other impairment losses of $10 million, and transaction,
separation, and integration costs of $3 million. Excluding these
items, Adjusted EBIT margin was 8.6% in the second quarter, an
improvement of 240 bps as compared to the prior year quarter.
Second quarter Adjusted EBIT margin came in above our guidance
range.
Diluted loss per share was $0.74 and Non-GAAP diluted earnings
per share was $0.90 in the second quarter of fiscal year 2022,
driven by the improvement in margins, lower interest expense, and a
lower tax rate. Non-GAAP EPS exceeded the Company's previous
guidance range.
Book-to-bill for the quarter was 0.91x, which was below
management’s longer-term goal of 1.0x, due to the timing of new
work. In the first half of fiscal 2022, the company delivered a
book to bill of 1.02x.
During the second quarter, the Company repurchased 2.1 million
shares of common stock for a total of $83 million. Year-to-date,
the company repurchased 3.9 million shares for a total of $150
million.
Financial Information by Segment
Global Business Services
("GBS")
Q2 FY22
Q2 FY21
Revenue
$
1,873
$
2,242
YoY Revenue Growth
(16.5)%
(1.9)%
YoY Organic Revenue Growth
3.4%
(6.0)%
Segment Profit
$
298
$
317
Segment Profit Margin
15.9%
14.1%
Book-to-Bill
0.92x
1.09x
GBS segment revenue was $1.873 billion in the second quarter of
fiscal year 2022, down 16.5% compared to prior year, but up 3.4% on
an organic basis. GBS segment profit was $298 million and segment
profit margin was 15.9%, up 180 bps as compared to the second
quarter of fiscal year 2021. GBS bookings for the quarter were
$1.72 billion for a book-to-bill of 0.92x.
Global Infrastructure Services
("GIS")
Q2 FY22
Q2 FY21
Revenue
$
2,154
$
2,312
YoY Revenue Growth
(6.8)%
(9.9)%
YoY Organic Revenue Growth
(8.0)%
(11.8)%
Segment Profit
$
118
$
36
Segment Profit Margin
5.5%
1.6%
Book-to-Bill
0.91x
1.07x
GIS segment revenue was $2.154 billion in the second quarter of
fiscal year 2022, down 6.8% compared to prior year, and down 8.0%
on an organic basis. GIS segment profit was $118 million with a
segment profit margin of 5.5%, a 390 bps margin expansion as
compared to second quarter of fiscal year 2021. GIS bookings were
$2.0 billion in the quarter for a book-to-bill of 0.91x.
Enterprise Technology Stack Highlights
The components of the Enterprise Technology Stack are as
follows:
Offerings Revenues
Q2 FY22
Q1 FY22
Q4 FY21
Q3 FY21
Q2 FY21
Stack Revenues
Analytics and Engineering
$
520
$
482
$
476
$
462
$
437
Applications
1,216
1,246
1,282
1,225
1,182
Business Process Services
118
118
133
128
136
Cloud and Security
521
549
551
543
517
IT Outsourcing
1,052
1,128
1,171
1,141
1,141
Modern Workplace
581
577
660
676
637
Subtotal
4,008
4,100
4,273
4,175
4,050
M&A and Divestitures
Revenues
19
41
112
113
504
Total Revenues
$
4,027
$
4,141
$
4,385
$
4,288
$
4,554
Cash Flow
Cash Flow
Q2 FY22
Q2 FY21
Cash Flow from Operations
$
563
$
472
Less Capital Expenditures:
Purchase of property and equipment
(67)
(61)
Transition and transformation contract
costs
(52)
(54)
Software purchased or developed
(40)
(54)
Free Cash Flow
$
404
$
303
Cash flow from operations was $563 million in the second quarter
of fiscal year 2022, and capital expenditures were $159 million.
Free cash flow (cash flow from operations, less capital
expenditures) was $404 million in the second quarter of FY22, as
compared to $303 million in the second quarter of FY21. Second
quarter FY22 cash flow included a tax payment of $160 million
related to divestitures and cash outflows related to the
refinancing of the Company’s high coupon debt.
Guidance
The Company's guidance for the third quarter and full fiscal
year 2022 is as follows:
Fiscal Year Guidance
Q3 FY22
Guidance
FY22
Outlook
Revenues
$4.08 to $4.13B
$16.4 to $16.6B
Organic Revenue Growth YoY
(1.0)% – (2.5)%
(1)% – (2)%
Adjusted EBIT Margin
8.6% – 8.9%
8.5% – 8.9%
Net Interest Cost
~$33 million
~$155 million
Non-GAAP Diluted EPS
$0.88 – $0.93
$3.52 – $3.72
Restructuring and TSI
~$550 million
Free Cash Flow
$500 million
Adjusted Effective Tax Rate
~28%
~26%
The Company reaffirmed its longer-term guidance:
- Positive organic revenue growth of 1% to 3% for fiscal year
2024
- Adjusted EBIT margin of 10% to 11% in fiscal year 2024
- Non-GAAP diluted EPS of $5.00 to $5.25 in fiscal year 2024
- Free cash flow of approximately $1.5 billion in fiscal year
2024
- Restructuring and TSI of approximately $100 million in fiscal
year 2024
DXC does not provide a reconciliation of Non-GAAP measures that
it discusses as part of its guidance because certain significant
information required for such reconciliation is not available
without unreasonable efforts or at all, including, most notably,
the impact of significant non-recurring items. Without this
information, DXC does not believe that a reconciliation would be
meaningful.
Ken Sharp, Chief Financial Officer, commented: “The second
quarter of fiscal year 2022 saw continued progress toward building
our strong financial foundation for DXC. Our recent refinancing
extends debt maturities, lowers maturity towers, and reduces
ongoing interest expense by approximately $50 million annually. We
continue to significantly reduce restructuring and TSI expense,
lower capital lease payments, reduce our facility footprint and
drive our ongoing cost optimization program. Taken together, these
initiatives are driving an improvement in DXC's free cash flow
generation capability."
Earnings Conference Call and Webcast
DXC Technology senior management will host a conference call and
webcast to discuss these results on November 3, 2021, at 5:00 p.m.
EDT. The dial-in number for domestic callers is +1 (888) 510-2008.
Callers who reside outside of the United States should dial +1
(646) 960-0306. The passcode for all participants is 9312260. The
webcast audio and any presentation slides will be available on DXC
Technology’s Investor Relations website.
A replay of the conference call will be available from
approximately two hours after the conclusion of the call until
November 17, 2021. Phone number for the replay is +1 (800) 770-2030
or +1 (647) 362-9199. The replay passcode is 9312260.
About DXC Technology
DXC Technology (NYSE: DXC) helps global companies run their
mission critical systems and operations while modernizing IT,
optimizing data architectures, and ensuring security and
scalability across public, private and hybrid clouds. The world’s
largest companies and public sector organizations trust DXC to
deploy services across the Enterprise Technology Stack to drive new
levels of performance, competitiveness, and customer experience.
Learn more about how we deliver excellence for our customers and
colleagues at DXC.com.
Forward-Looking Statements
All statements in this press release that do not directly and
exclusively relate to historical facts constitute “forward-looking
statements.” Forward-looking statements often include words such as
“anticipates,” “believes,” “estimates,” “expects,” “forecast,”
“goal,” “intends,” “objective,” “plans,” “projects,” “strategy,”
“target,” and “will” and words and terms of similar substance in
discussions of future operating or financial performance.
Forward-looking statements include, among other things, statements
with respect to our future financial condition, results of
operations, cash flows, business strategies, operating efficiencies
or synergies, divestitures, competitive position, growth
opportunities, share repurchases, dividend payments, plans and
objectives of management and other matters. These statements
represent current expectations and beliefs, and no assurance can be
given that the results described in such statements will be
achieved. Such statements are subject to numerous assumptions,
risks, uncertainties and other factors that could cause actual
results to differ materially from those described in such
statements, many of which are outside of our control. Furthermore,
many of these risks and uncertainties are currently amplified by
and may continue to be amplified by or may, in the future, be
amplified by, the coronavirus disease 2019 (“COVID-19”) pandemic
and the impact of varying private and governmental responses that
affect our customers, employees, vendors and the economies and
communities where they operate. For a written description of these
factors, see the section titled “Risk Factors” in DXC’s Annual
Report on Form 10-K for the fiscal year ended March 31, 2021, and
any updating information in subsequent SEC filings, including DXC’s
upcoming Quarterly Report on Form 10-Q for the quarterly period
ended September 30, 2021.
No assurance can be given that any goal or plan set forth in any
forward-looking statement can or will be achieved, and readers are
cautioned not to place undue reliance on such statements which
speak only as of the date they are made. We do not undertake any
obligation to update or release any revisions to any
forward-looking statement or to report any events or circumstances
after the date of this presentation or to reflect the occurrence of
unanticipated events except as required by law.
About Non-GAAP Measures
In an effort to provide investors with supplemental financial
information, in addition to the preliminary and unaudited financial
information presented on a GAAP basis, we have also disclosed in
this press release preliminary Non-GAAP information including:
earnings before interest and taxes ("EBIT"), EBIT margin, Adjusted
EBIT, Adjusted EBIT margin, Non-GAAP income before income taxes,
Non-GAAP net income, Non-GAAP diluted EPS, organic revenues,
organic revenue growth, and free cash flow.
We believe EBIT, EBIT margin, Adjusted EBIT, Adjusted EBIT
margin, Non-GAAP income before income taxes, Non-GAAP net income
and Non-GAAP diluted EPS provide investors with useful supplemental
information about our operating performance after excluding certain
categories of expenses. Free cash flow represents cash flow from
operations, less capital expenditures.
One category of expenses excluded from Adjusted EBIT, Adjusted
EBIT margin, Non-GAAP income from continuing operations before tax,
Non-GAAP net income and Non-GAAP diluted EPS, incremental
amortization of intangible assets acquired through business
combinations, may result in a significant difference in period over
period amortization expense on a GAAP basis. We exclude
amortization of certain acquired intangible assets as these
non-cash amounts are inconsistent in amount and frequency and are
significantly impacted by the timing and/or size of acquisitions.
Although DXC management excludes amortization of acquired
intangible assets primarily customer-related intangible assets,
from its Non-GAAP expenses, we believe that it is important for
investors to understand that such intangible assets were recorded
as part of purchase accounting and support revenue generation. Any
future transactions may result in a change to the acquired
intangible asset balances and associated amortization expense.
Another category of expenses excluded from Adjusted EBIT,
Adjusted EBIT margin, Non-GAAP income from continuing operations
before tax, Non-GAAP net income and Non-GAAP diluted EPS,
impairment losses, may result in a significant difference in period
over period expense on a GAAP basis. We exclude impairment losses
as these non-cash amounts, reflect generally an acceleration of
what would be multiple periods of expense and do not expect to
occur frequently. Further assets such as goodwill may be
significantly impacted by market conditions outside of management’s
control.
We believe organic revenue growth provides investors with useful
supplemental information about our revenues after excluding the
effect of currency exchange rate fluctuations for currencies other
than U.S. dollars and the effects of acquisitions and divestitures
in the periods presented. See below for a description of the
methodology we use to present organic revenues.
Selected references are made to revenue growth on an “organic
basis” so that certain financial results can be viewed without the
impact of fluctuations in foreign currency rates and without the
impacts of acquisitions and divestitures from “organic basis”
financial results, thereby providing comparisons of operating
performance from period to period of the business that we have
owned during all periods presented. Organic revenue growth is
calculated by dividing the year-over-year change in GAAP revenues
attributed to organic growth by the GAAP revenues reported in the
prior comparable period. This approach is used for all results
where the functional currency is not the U.S. dollar.
There are limitations to the use of the Non-GAAP financial
measures presented in this report. One of the limitations is that
they do not reflect complete financial results. We compensate for
this limitation by providing a reconciliation between our Non-GAAP
financial measures and the respective most directly comparable
financial measure calculated and presented in accordance with GAAP.
Additionally, other companies, including companies in our industry,
may calculate Non-GAAP financial measures differently than we do,
limiting the usefulness of those measures for comparative purposes
between companies.
Condensed Consolidated Statements of
Operations
(preliminary and unaudited)
Three Months Ended
Six Months Ended
(in millions, except per-share
amounts)
September 30, 2021
September 30, 2020
September 30, 2021
September 30, 2020
Revenues
$
4,027
$
4,554
$
8,168
$
9,056
Costs of services
3,088
3,563
6,343
7,192
Selling, general and administrative
370
539
753
1,078
Depreciation and amortization
448
525
870
1,017
Restructuring costs
145
265
212
337
Interest expense
61
96
123
202
Interest income
(16
)
(25
)
(36
)
(48
)
Debt extinguishment costs
281
—
309
—
Gain on disposition of businesses
—
—
(377
)
—
Other income, net
(102
)
(103
)
(205
)
(191
)
Total costs and expenses
4,275
4,860
7,992
9,587
(Loss) income before income taxes
(248
)
(306
)
176
(531
)
Income tax (benefit) expense
(61
)
(60
)
81
(86
)
Net (loss) income
(187
)
(246
)
95
(445
)
Less: net income (loss) attributable to
non-controlling interest, net of tax
1
(2
)
5
4
Net (loss) income attributable to DXC
common stockholders
$
(188
)
$
(244
)
$
90
$
(449
)
(Loss) income per common share:
Basic
$
(0.74
)
$
(0.96
)
$
0.35
$
(1.77
)
Diluted
$
(0.74
)
$
(0.96
)
$
0.35
$
(1.77
)
Weighted average common shares outstanding
for:
Basic EPS
252.40
254.13
253.53
253.88
Diluted EPS
252.40
254.13
258.90
253.88
Selected Consolidated Balance Sheet
Data
(preliminary and unaudited)
As of
(in millions)
September 30, 2021
March 31, 2021
Assets
Cash and cash equivalents
$
2,699
$
2,968
Receivables, net
3,821
4,156
Prepaid expenses
534
567
Other current assets
330
517
Total current assets
7,384
8,208
Intangible assets, net
3,691
4,043
Operating right-of-use assets, net
1,174
1,366
Goodwill
631
641
Deferred income taxes, net
255
289
Property and equipment, net
2,691
2,946
Other assets
4,289
4,545
Total Assets
$
20,115
$
22,038
Liabilities
Short-term debt and current maturities of
long-term debt
$
745
$
1,167
Accounts payable
724
914
Accrued payroll and related costs
645
698
Current operating lease liabilities
392
418
Accrued expenses and other current
liabilities
3,120
3,476
Deferred revenue and advance contract
payments
933
1,079
Income taxes payable
260
398
Total current liabilities
6,819
8,150
Long-term debt, net of current
maturities
4,363
4,345
Non-current deferred revenue
775
622
Non-current operating lease
liabilities
862
1,038
Non-current income tax liabilities and
deferred tax liabilities
711
854
Other long-term liabilities
1,502
1,721
Total Liabilities
15,032
16,730
Total Equity
5,083
5,308
Total Liabilities and Equity
$
20,115
$
22,038
Condensed Consolidated Statements of
Cash Flows
(preliminary and unaudited)
Six Months Ended
(in millions)
September 30, 2021
September 30, 2020
Cash flows from operating activities:
Net income (loss)
$
95
$
(445
)
Adjustments to reconcile net income
(loss) to net cash provided by operating activities:
Depreciation and amortization
879
1,025
Operating right-of-use expense
254
307
Pension & other post-employment
benefits, actuarial & settlement losses
—
2
Share-based compensation
51
36
Deferred taxes
(41
)
—
(Gain) loss on dispositions
(415
)
14
Provision for (gains) losses on accounts
receivable
(2
)
45
Unrealized foreign currency exchange
gain
(19
)
(43
)
Impairment losses and contract
write-offs
17
42
Debt extinguishment costs
309
—
Other non-cash charges, net
3
(5
)
Decrease in assets
348
57
Decrease in operating lease liability
(254
)
(307
)
Decrease in other liabilities
(691
)
(137
)
Net cash provided by operating
activities
534
591
Cash flows from investing
activities:
Purchases of property and equipment
(165
)
(156
)
Payments for transition and transformation
contract costs
(107
)
(136
)
Software purchased and developed
(162
)
(102
)
Payments for acquisitions, net of cash
acquired
—
(10
)
Business dispositions
513
—
Cash collections related to deferred
purchase price receivable
—
159
Proceeds from sale of assets
87
8
Short-term investing
24
—
Other investing activities, net
9
3
Net cash provided by (used in)
investing activities
199
(234
)
Cash flows from financing
activities:
Borrowings of commercial paper
703
830
Repayments of commercial paper
(679
)
(508
)
Borrowings under lines of credit
—
2,500
Repayment of borrowings under lines of
credit
—
(2,750
)
Borrowings on long-term debt
19
—
Principal payments on long-term debt
(2,871
)
(1,476
)
Payments on finance leases and borrowings
for asset financing
(671
)
(487
)
Proceeds from bond issuance
2,918
993
Proceeds from stock options and other
common stock transactions
12
—
Taxes paid related to net share
settlements of share-based compensation awards
(13
)
(3
)
Payments for debt extinguishment costs
(344
)
—
Repurchase of common stock and advance
payment for accelerated share repurchase
(150
)
—
Dividend payments
—
(53
)
Other financing activities, net
13
(9
)
Net cash used in financing
activities
(1,063
)
(963
)
Effect of exchange rate changes on cash
and cash equivalents
(2
)
9
Net decrease in cash and cash
equivalents including cash classified within current assets held
for sale
(332
)
(597
)
Cash classified within current assets
held for sale
63
(3
)
Net decrease in cash and cash
equivalents
(269
)
(600
)
Cash and cash equivalents at beginning
of year
2,968
3,679
Cash and cash equivalents at end of
period
$
2,699
$
3,079
Segment Profit
We define segment profit as segment revenues less costs of
services, segment selling, general and administrative, depreciation
and amortization, and other income (excluding the movement in
foreign currency exchange rates on our foreign currency denominated
assets and liabilities and the related economic hedges). The
Company does not allocate to its segments certain operating
expenses managed at the corporate level. These unallocated costs
include certain corporate function costs, stock-based compensation
expense, pension and other post-retirement benefits (“OPEB”)
actuarial and settlement gains and losses, restructuring costs,
transaction, separation and integration-related costs, and
amortization of acquired intangible assets.
Three Months Ended
Six Months Ended
(in millions)
September 30, 2021
September 30, 2020
September 30, 2021
September 30, 2020
Profit
GBS profit
$
298
$
317
$
570
$
532
GIS profit
118
36
249
59
All other loss
(70
)
(70
)
(141
)
(118
)
Interest income
16
25
36
48
Interest expense
(61
)
(96
)
(123
)
(202
)
Restructuring costs
(145
)
(265
)
(212
)
(337
)
Transaction and integration-related
costs
(3
)
(101
)
(12
)
(211
)
Amortization of acquired intangible
assets
(110
)
(152
)
(219
)
(300
)
Gains on dispositions
—
—
347
—
Impairment losses
(10
)
—
(10
)
—
Debt Extinguishment costs
(281
)
—
(309
)
—
Pension and OPEB actuarial and settlement
losses
—
—
—
(2
)
(Loss) income before income taxes
$
(248
)
$
(306
)
$
176
$
(531
)
Segment profit margins
GBS
15.9
%
14.1
%
15.2
%
12.0
%
GIS
5.5
%
1.6
%
5.6
%
1.3
%
Reconciliation of Non-GAAP Financial Measures
Our Non-GAAP adjustments include:
- Restructuring costs – includes costs, net of reversals, related
to workforce and real estate optimization and other similar
charges.
- Transaction, separation and integration-related (“TSI”) costs –
includes costs related to integration, planning, financing and
advisory fees and other similar charges associated with mergers,
acquisitions, strategic investments, joint ventures, and
dispositions and other similar transactions.(1)
- Amortization of acquired intangible assets – includes
amortization of intangible assets acquired through business
combinations.
- Gains and losses on dispositions – gains and losses related to
dispositions of businesses, strategic assets and interests in less
than wholly-owned entities.(2)
- Impairment losses – impairment losses on assets classified as
long-term on the balance sheet.(3)
- Debt extinguishment costs – costs associated with early
retirement, redemption, repayment or repurchase of debt and
debt-like items including any breakage, make-whole premium,
prepayment penalty or similar costs as well as solicitation and
other legal and advisory expenses.(4)
- Pension and OPEB actuarial and settlement gains and losses –
pension and OPEB actuarial mark to market adjustments and
settlement gains and losses.
- Tax adjustments – discrete tax adjustments to impair or
recognize certain deferred tax assets, adjustments for changes in
tax legislation and the impact of merger and divestitures. Income
tax expense of all other (non-discrete) Non-GAAP adjustments is
based on the difference in the GAAP annual effective tax rate
(AETR) and overall Non-GAAP provision (consistent with the GAAP
methodology).(5)
(1)
TSI-Related Costs include fees and other
internal and external expenses associated with legal, accounting,
consulting, due diligence, investment banking advisory, and other
services, as well as financing fees, retention incentives, and
resolution of transaction related claims in connection with, or
resulting from, exploring or executing potential acquisitions,
dispositions and strategic investments, whether or not announced or
consummated.
The TSI-Related costs for the second
quarter of fiscal 2022 include $2 million of costs to execute the
strategic alternatives; ($2 million) credit to legal costs for
Peraton (formerly Perspecta) Arbitration; and $3 million of costs
incurred in connection with activities related to other
acquisitions and divestitures.
The TSI-Related costs for the first six
months of fiscal 2022 include $13 million of costs to execute the
strategic alternatives; $4 million legal costs and ($14 million)
credit towards Peraton Arbitration settlement, $4 million in
expenses related to integration projects resulting from the HPES
merger (including costs associated with continuing efforts to
separate certain IT systems) and $5 million of costs incurred in
connection with activities related to other acquisitions and
divestitures.
(2)
Gains and losses on dispositions for the
first six months of fiscal 2022 include a $341 million gain on sale
of the HPS business, gains of $19 million on other dispositions and
($13 million) of adjustments relating to the sale of the HHS
business.
(3)
Impairment losses on dispositions for the
second quarter and first six months of fiscal 2022 includes a $10
million impairment charge of capitalized transition and
transformation costs.
(4)
Debt extinguishment costs adjustments for
the second quarter of fiscal 2022 include $1 million to fully
redeem our Euro-denominated term loan facility, $41 million to
fully redeem our 4.25% senior notes due fiscal 2025, $26 million to
fully redeem our 2.75% senior notes due fiscal 2025, $55 million to
fully redeem our 4.125% senior notes due fiscal 2026, $87 million
to fully redeem our 4.750% senior notes due fiscal 2028, and $71
million to fully redeem our 7.45% senior notes due fiscal 2030.
In addition to the above, debt
extinguishment costs adjustments for the first six months of fiscal
2022 reflects activity from the first quarter of fiscal 2022,
including $18 million to fully redeem two series of our 4.45%
senior notes due fiscal 2023, $3 million to partially redeem our
4.125% senior notes due fiscal 2026, and $7 million of debt
associated with asset financing.
(5)
Tax adjustment for the first six months of
fiscal 2022 reflects net revaluation of deferred taxes resulting
from changes in non-US jurisdiction tax rates.
Non-GAAP Results
A reconciliation of reported results to Non-GAAP results is as
follows:
Three Months Ended September
30, 2021
(in millions, except per-share
amounts)
As Reported
Restructuring Costs
Transaction, Separation and
Integration-Related Costs
Amortization of Acquired
Intangible Assets
Impairment Losses
Debt Extinguishment
Costs
Non-GAAP Results
(Loss) income before income taxes
$
(248
)
$
145
$
3
$
110
$
10
$
281
$
301
Income tax (benefit) expense
(61
)
34
1
26
2
66
68
Net (loss) income
(187
)
111
2
84
8
215
233
Less: net income attributable to
non-controlling interest, net of tax
1
—
—
—
—
—
1
Net (loss) income attributable to DXC
common stockholders
$
(188
)
$
111
$
2
$
84
$
8
$
215
$
232
Effective Tax Rate
24.6
%
22.6
%
Basic EPS
$
(0.74
)
$
0.44
$
0.01
$
0.33
$
0.03
$
0.85
$
0.92
Diluted EPS
$
(0.74
)
$
0.43
$
0.01
$
0.33
$
0.03
$
0.84
$
0.90
Weighted average common shares outstanding
for:
Basic EPS
252.40
252.40
252.40
252.40
252.40
252.40
252.40
Diluted EPS
252.40
257.20
257.20
257.20
257.20
257.20
257.20
Six Months Ended September 30,
2021
(in millions, except per-share
amounts)
As Reported
Restructuring Costs
Transaction, Separation and
Integration-Related Costs
Amortization of Acquired
Intangible Assets
Gains and Losses on
Dispositions
Impairment Losses
Debt Extinguishment
Costs
Tax Adjustment
Non-GAAP Results
Income (loss) before income taxes
$
176
$
212
$
12
$
219
$
(347
)
$
10
$
309
$
—
$
591
Income tax expense
81
44
5
50
(91
)
2
73
(28
)
136
Net income
95
168
7
169
(256
)
8
236
28
455
Less: net income attributable to
non-controlling interest, net of tax
5
—
—
—
—
—
—
—
5
Net income attributable to DXC common
stockholders
$
90
$
168
$
7
$
169
$
(256
)
$
8
$
236
$
28
$
450
Effective Tax Rate
46.0
%
23.0
%
Basic EPS
$
0.35
$
0.66
$
0.03
$
0.67
$
(1.01
)
$
0.03
$
0.93
$
0.11
$
1.77
Diluted EPS
$
0.35
$
0.65
$
0.03
$
0.65
$
(0.99
)
$
0.03
$
0.91
$
0.11
$
1.74
Weighted average common shares outstanding
for:
Basic EPS
253.53
253.53
253.53
253.53
253.53
253.53
253.53
253.53
253.53
Diluted EPS
258.90
258.90
258.90
258.90
258.90
258.90
258.90
258.90
258.90
Three Months Ended September
30, 2020
(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
(Loss) income before income taxes
$
(306
)
$
265
$
101
$
152
$
—
$
212
Income tax (benefit) expense
(60
)
52
26
35
(2
)
51
Net (loss) income
(246
)
213
75
117
2
161
Less: net loss attributable to
non-controlling interest, net of tax
(2
)
—
—
—
—
(2
)
Net (loss) income attributable to DXC
common stockholders
$
(244
)
$
213
$
75
$
117
$
2
$
163
Effective Tax Rate
19.6
%
24.1
%
Basic EPS
$
(0.96
)
$
0.84
$
0.30
$
0.46
$
0.01
$
0.64
Diluted EPS
$
(0.96
)
$
0.83
$
0.29
$
0.46
$
0.01
$
0.64
Weighted average common shares outstanding
for:
Basic EPS
254.13
254.13
254.13
254.13
254.13
254.13
Diluted EPS
254.13
255.18
255.18
255.18
255.18
255.18
Six Months Ended September 30,
2020
(in millions, except per-share
amounts)
As Reported
Restructuring Costs
Transaction, Separation and
Integration-Related Costs
Amortization of Acquired
Intangible Assets
Pension and OPEB Actuarial and
Settlement Gains and Losses
Tax Adjustment
Non-GAAP Results
(Loss) income before income taxes
$
(531
)
$
337
$
211
$
300
$
2
$
—
$
319
Income tax (benefit) expense
(86
)
64
54
69
—
(2
)
99
Net (loss) income
(445
)
273
157
231
2
2
220
Less: net income attributable to
non-controlling interest, net of tax
4
—
—
—
—
—
4
Net (loss) income attributable to DXC
common stockholders
$
(449
)
$
273
$
157
$
231
$
2
$
2
$
216
Effective Tax Rate
16.2
%
31.0
%
Basic EPS
$
(1.77
)
$
1.08
$
0.62
$
0.91
$
0.01
$
0.01
$
0.85
Diluted EPS
$
(1.77
)
$
1.07
$
0.62
$
0.91
$
0.01
$
0.01
$
0.85
Weighted average common shares outstanding
for:
Basic EPS
253.88
253.88
253.88
253.88
253.88
253.88
253.88
Diluted EPS
253.88
254.76
254.76
254.76
254.76
254.76
254.76
The above tables serve to reconcile the Non-GAAP financial
measures to the most directly comparable GAAP measures. Please
refer to the “About Non-GAAP Measures” section of the press release
for further information on the use of these Non-GAAP measures.
Year-over-Year Organic Revenue
Growth
Three Months Ended
September 30, 2021
September 30, 2020
Total revenue growth
(11.6
)%
(6.1
)%
Foreign currency
(1.4
)%
(1.6
)%
Acquisitions and divestitures
10.6
%
(1.4
)%
Organic revenue growth
(2.4
)%
(9.1
)%
GIS revenue growth
(6.8
)%
(9.9
)%
Foreign currency
(1.9
)%
(1.7
)%
Acquisitions and divestitures
0.7
%
(0.2
)%
GIS organic revenue growth
(8.0
)%
(11.8
)%
GBS revenue growth
(16.5
)%
(1.9
)%
Foreign currency
(0.9
)%
(1.5
)%
Acquisitions and divestitures
20.8
%
(2.6
)%
GBS organic revenue growth
3.4
%
(6.0
)%
EBIT and Adjusted EBIT
Three Months Ended
Six Months Ended
(in millions)
September 30, 2021
September 30, 2020
September 30, 2021
September 30, 2020
Net (loss) income
$
(187
)
$
(246
)
$
95
$
(445
)
Income tax (benefit) expense
(61
)
(60
)
81
(86
)
Interest income
(16
)
(25
)
(36
)
(48
)
Interest expense
61
96
123
202
EBIT
(203
)
(235
)
263
(377
)
Restructuring costs
145
265
212
337
Transaction, separation and
integration-related costs
3
101
12
211
Amortization of acquired intangible
assets
110
152
219
300
(Gains) and losses on dispositions
—
—
(347
)
—
Impairment losses
10
—
10
—
Debt extinguishment costs
281
—
309
—
Pension and OPEB actuarial and settlement
losses
—
—
—
2
Adjusted EBIT
$
346
$
283
$
678
$
473
EBIT margin
(5.0
)%
(5.2
)%
3.2
%
(4.2
)%
Adjusted EBIT margin
8.6
%
6.2
%
8.3
%
5.2
%
Source: DXC Technology Category: Investor Relations
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211103006085/en/
John Sweeney, CFA, Vice President, Investor Relations,
+1-980-315-3665, john.sweeney@dxc.com Richard Adamonis, Corporate
Media Relations, +1-862-228-3481, radamonis@dxc.com
DXC Technology (NYSE:DXC)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
DXC Technology (NYSE:DXC)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024