Cash Flow(1) |
|
Q3 FY23 |
|
Q3 FY22 |
||||
Cash Flow from Operations |
|
$ |
625 |
|
|
$ |
696 |
|
Less Capital Expenditures: |
|
|
|
|
||||
Purchase of property and equipment |
|
|
(66 |
) |
|
|
(52 |
) |
Transition and transformation contract costs |
|
|
(52 |
) |
|
|
(45 |
) |
Software purchased or developed |
|
|
(44 |
) |
|
|
(49 |
) |
Free Cash Flow |
|
$ |
463 |
|
|
$ |
550 |
|
(1)In millions |
||||||||
Cash flow from operations was $625 million in the third quarter of fiscal year 2023, as compared to $696 million in the third quarter of fiscal year 2022, and capital expenditures were $162 million in the third quarter of fiscal year 2023, as compared to $146 million in the third quarter of fiscal year 2022. Free cash flow (cash flow from operations, less capital expenditures) was $463 million in the third quarter of fiscal year 2023, as compared to $550 million in the third quarter of fiscal year 2022. On a year to date basis, operating cash flow and free cash flow were impacted by lower deposits at the German Banks of approximately $70 million.
Guidance
The Company's guidance for the fourth quarter and full fiscal year 2023 is as follows:
Key Metrics(1) |
|
Q4 FY23 Guidance |
|
FY23 Guidance |
||||
|
Lower End |
Higher End |
Q4 FY22 |
|
Lower End |
Higher End |
FY22 |
|
Organic Revenue Growth % |
|
(3.1)% |
(2.6)% |
(2.8)% |
|
(2.7)% |
(2.6)% |
(2.6)% |
Adjusted EBIT Margin |
|
8.7% |
9.2% |
8.5% |
|
8.0% |
8.1% |
8.5% |
| Non-GAAP Diluted EPS |
|
$1.00 |
$1.05 |
$0.84 |
|
$3.45 |
$3.50 |
$3.50 |
| Free Cash Flow (2) |
|
|
$93 |
|
~$630 |
$743 |
||
| Revenue |
|
|
|
|
|
|
||
| Revenue |
|
$3,615 |
$3,635 |
$4,008 |
|
$14,460 |
$14,470 |
$16,265 |
| Acquisition & Divestitures Impact on Revenues |
|
(3.6)% |
(2.8)% |
|
(2.6)% |
(6.5)% |
||
| Foreign Exchange Impact on Revenues |
|
(3.1)% |
(3.0)% |
|
(5.8)% |
0.8% |
||
| Others |
|
|
|
|
|
|
||
| Pension Income Benefit (3) |
|
~$40 |
$80 |
|
~$180 |
$298 |
||
| Net Interest Expense |
|
~$20 |
$29 |
|
~$68 |
$139 |
||
| Non-GAAP Tax Rate |
|
~21% |
31.9% |
|
~25% |
26.6% |
||
| Weighted Average Diluted Shares Outstanding |
|
232 |
233 |
248 |
|
233 |
234 |
255 |
| Restructuring & TSI Expense |
|
|
|
|
$300 |
$344 |
||
| Capital Lease / Asset Financing payments |
|
|
|
|
~$500 |
$990 |
||
| Foreign Exchange Assumptions |
|
Current Estimate |
Q4 FY22 |
|
Current Estimate |
FY22 |
||
| $/Euro exchange rate |
|
$1.08 |
$1.12 |
|
$1.04 |
$1.16 |
||
| $/GBP exchange rate |
|
$1.24 |
$1.34 |
|
$1.21 |
$1.37 |
||
| $/AUD exchange rate |
|
$0.69 |
$0.72 |
|
$0.69 |
$0.74 |
||
| (1) In millions except for ratios, rates and per share numbers |
||||||||
| (2) Includes a $70 million adjustment for the reduction in German bank deposits, which directly reduced FY23 FCF, and was not contemplated in original guidance |
||||||||
| (3) Pension benefit is split between Cost Of Sales (COS) & Other Income : |
||||||||
| Fiscal year 2023: $75 million service cost in COS, $255 million pension benefit in Other income |
||||||||
| Fiscal year 2022: $88 million service cost in COS, $386 million pension benefit in Other income |
||||||||
