SPY380.36-1.97 -0.52%
DIA309.45-4.53 -1.44%
IXIC13,192.35+72.96 0.56%

Press Release: DXC Technology Reports Third -2-

· 02/04/2021 16:15
Condensed Consolidated Statements of Operations (preliminary and unaudited) Three Months Ended Nine Months Ended ---------------------- -------------------- (in millions, December except per-share December December 31, December amounts) 31, 2020 31, 2019 2020 31, 2019 ---------------- ---------- ---------- -------- ---------- Revenues $ 4,288 $ 5,021 $13,344 $14,762 ----- ----- ------ ------ Costs of services 3,333 3,827 10,525 11,128 Selling, general and administrative 517 518 1,595 1,514 Depreciation and amortization 475 479 1,492 1,416 Goodwill impairment losses -- 53 -- 2,940 Restructuring costs 104 74 441 248 Interest expense 82 93 284 288 Interest income (28) (33) (76) (130) Gain on dispositions of businesses (2,046) -- (2,046) -- Gain on arbitration award -- -- -- (632) Other income, net (127) (117) (318) (344) --------- --------- ------- ------- Total costs and expenses 2,310 4,894 11,897 16,428 --------- --------- ------- ------- Income (loss) before income taxes 1,978 127 1,447 (1,666) Income tax expense 875 37 789 191 --------- --------- ------- ------- Net income (loss) 1,103 90 658 (1,857) Less: net income attributable to non-controlling interest, net of tax 5 8 9 17 --------- --------- ------- ------- Net income (loss) attributable to DXC common stockholders $ 1,098 $ 82 $ 649 $(1,874) ===== ===== ====== ====== Earnings (loss) per common share: Basic $ 4.32 $ 0.32 $ 2.55 $ (7.20) Diluted $ 4.29 $ 0.32 $ 2.54 $ (7.20) Cash dividend per common share $ -- $ 0.21 $ -- $ 0.63 Weighted average common shares outstanding for: Basic EPS 254.32 255.09 254.03 260.24 Diluted EPS 255.75 256.05 255.20 260.24 Selected Consolidated Balance Sheet Data (preliminary and unaudited) As of --------------------------------------- (in millions) December 31, 2020 March 31, 2020 ------------------------------ ------------------- ------------------ Assets Cash and cash equivalents $ 3,919 $ 3,679 Receivables, net 4,130 4,392 Prepaid expenses 586 646 Other current assets 470 270 ------------------- ---------------- Total current assets 9,105 8,987 Intangible assets, net 4,019 5,731 Operating right-of-use assets, net 1,459 1,428 Goodwill 736 2,017 Deferred income taxes, net 315 265 Property and equipment, net 3,321 3,547 Other assets 4,679 4,031 ------------------- ---------------- Total Assets $ 23,634 $ 26,006 === ============== ============ Liabilities Short-term debt and current maturities of long-term debt $ 795 $ 1,276 Accounts payable 852 1,598 Accrued payroll and related costs 741 630 Current operating lease liabilities 450 482 Accrued expenses and other current liabilities 3,285 2,801 Deferred revenue and advance contract payments 1,102 1,021 Income taxes payable 1,045 87 ------------------- ---------------- Total current liabilities 8,270 7,895 Long-term debt, net of current maturities 5,444 8,672 Non-current deferred revenue 666 735 Non-current operating lease liabilities 1,113 1,063 Non-current income tax liabilities and deferred tax liabilities 792 1,157 Other long-term liabilities 1,354 1,355 ------------------- ---------------- Total Liabilities 17,639 20,877 Total Equity 5,995 5,129 Total Liabilities and Equity $ 23,634 $ 26,006 === ============== ============ Condensed Consolidated Statements of Cash Flows (preliminary and unaudited) Nine Months Ended -------------------------------- December 31, December 31, (in millions) 2020 2019 ------------------------------------- -------------- ---------------- Cash flows from operating activities: Net income (loss) $ 658 $ (1,857) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 1,506 1,429 Goodwill impairment losses -- 2,940 Operating right-of-use expense 463 506 Pension and other post-employment benefits, actuarial and settlement losses 2 -- Share-based compensation 42 57 Deferred taxes (319) (28) (Gain) loss on dispositions (2,023) 6 Provision for losses on accounts receivable 52 -- Unrealized foreign currency exchange (gain) loss (60) 14 Impairment losses and contract write-offs 68 20 Other non-cash charges, net (2) (13) Changes in assets and liabilities, net of effects of acquisitions and dispositions: Decrease in assets 88 141 Decrease in operating lease liability (463) (506) Increase (decrease) in other liabilities 392 (647) ------------- ------------- Net cash provided by operating activities 404 2,062 ------------- ------------- Cash flows from investing activities: Purchases of property and equipment (215) (240) Payments for transition and transformation contract costs (189) (220) Software purchased and developed (209) (178) Payments for acquisitions, net of cash acquired (10) (1,997) Business dispositions 4,942 -- Cash collections related to deferred purchase price receivable 159 513 Proceeds from sale of assets 27 55 Short-term investing -- (75) Other investing activities, net (5) 20 ------------- ------------- Net cash provided by (used in) investing activities 4,500 (2,122) ------------- ------------- Cash flows from financing activities: Borrowings of commercial paper 854 4,010 Repayments of commercial paper (1,327) (3,893)

Selected references to revenues are made on a "constant currency basis" so that certain financial results can be viewed without the impact of fluctuations in foreign currency rates, thereby providing comparisons of operating performance from period to period. In addition, references are made to revenues on a "organic basis" to exclude the impacts of acquisitions and divestitures from "constant currency basis" financial results, thereby providing comparisons of operating performance from period to period of the business that we have owned during all periods presented. Revenues on a "constant currency basis" and "organic constant currency basis" are non-GAAP financial measures calculated by translating current period activity into U.S. dollars using the comparable prior period's currency conversion rates. This approach is used for all results where the functional currency is not the U.S. dollar.

(MORE TO FOLLOW) Dow Jones Newswires

February 04, 2021 16:15 ET (21:15 GMT)