Thomson Reuters Reports Second-Quarter 2012 Results
(Thomson Reuters ONE) -
* Revenues grew 3% before currency
* Adjusted EBITDA of $892 million with a margin of 28.0%
* Underlying operating profit of $617 million with a margin of 19.3%
* Adjusted earnings per share were $0.54 vs. $0.51 in the second quarter 2011
* 2012 Outlook affirmed
NEW YORK, July 31, 2012 - Thomson Reuters (TSX / NYSE: TRI), the world's
leading source of intelligent information for businesses and professionals,
today reported results for the second quarter ended June 30, 2012. The company
reported revenues from ongoing businesses of $3.2 billion, a 3% increase before
currency. Adjusted EBITDA was up slightly from the prior-year period and the
corresponding margin was 28.0% versus 28.1% in the second quarter of 2011.
Underlying operating profit decreased 8% and the corresponding margin was 19.3%
versus 21.2% in the prior-year period.
Adjusted earnings per share (EPS) were $0.54 compared to $0.51 in the second
quarter of 2011.
"Our results for the quarter and first half of the year were on track," said
James C. Smith, chief executive officer of Thomson Reuters. "Growth in the
second quarter was driven by the strong performance of our Legal, Tax &
Accounting and Intellectual Property & Sciences businesses. Our Financial & Risk
year-to-date revenue performance, though tepid, has held up relatively well
despite growing headwinds in the global financial services industry. We have
been making progress across the Financial & Risk business with a more rigorous
and disciplined approach."
"I am pleased that we were able to complete the sale of our Healthcare business
for $1.25 billion and redeploy some of the proceeds to support key growth
businesses as evidenced by our recent announcements to acquire FXall and
MarkMonitor," continued Mr. Smith.
Consolidated Financial Highlights
Three Months Ended June 30,
(Millions of U.S. dollars, except EPS and
margins)
IFRS Financial Measures 2012 2011 Change
Revenues $3,309 $3,447 -4%
Operating profit $1,318 $833 58%
Diluted earnings per share (EPS) $1.11 $0.67 66%
Cash flow from operations $870 $879 -1%
Change
Before
Non-IFRS Financial Measures[1] 2012 2011 Change Currency
Revenues from ongoing businesses $3,189 $3,161 1% 3%
Adjusted EBITDA $892 $888 0% 3%
Adjusted EBITDA margin 28.0% 28.1% -10bp -10bp
Underlying operating profit $617 $669 -8% -5%
Underlying operating profit
margin 19.3% 21.2% -190bp -170bp
Adjusted earnings per share (EPS) $0.54 $0.51 6%
Free cash flow $660 $633 4%
Free cash flow from ongoing
operations $641 $611 5%
[1] These and other non-IFRS financial measures are defined and reconciled to
the most directly comparable IFRS measures in the tables appended to this news
release. Additional information is provided in the explanatory note at the end
of this news release.
* Revenues from ongoing businesses were $3.2 billion, a 3% increase before
currency.
* Adjusted EBITDA was up slightly, and the corresponding margin was 28.0%
versus 28.1% in the prior-year period as the elimination of integration
expenses and higher revenues were offset by an anticipated increase in
expenses in Financial & Risk related to planned investments in customer
service and customer administration.
* Underlying operating profit decreased 8% and the corresponding margin was
19.3% versus 21.2% in the prior-year period as higher revenues were offset
by higher depreciation and amortization from investments made in prior
periods and planned increases in expenses.
* Adjusted EPS was $0.54 compared to $0.51 in the prior-year period. The
increase was primarily attributable to the elimination of integration
expenses and a lower tax rate which were partly offset by lower underlying
operating profit. Foreign exchange had a $0.01 negative impact on adjusted
EPS.
Second-Quarter Business Segment Highlights
Unless otherwise noted, all revenue growth comparisons in this news release are
before the impact of foreign currency as Thomson Reuters believes this provides
the best basis to measure the performance of its business.
Financial & Risk
* Revenues increased 1%. Growth in Marketplaces and Governance, Risk &
Compliance and from acquisitions was offset by declines in revenues from the
Trading and Investors business units.
* Recurring subscription-related revenues were flat. Transactions-related
revenues increased 4%. Recoveries revenues increased 1% and Outright
revenues declined 3%.
* By geography, revenues in Europe, Middle East and Africa (EMEA) were flat,
revenues in the Americas were up 3% while revenues in Asia declined 2%,
primarily related to Japan.
* EBITDA was $460 million, down 13%, with a related margin of 25.7%. The
related margin decreased 290 basis points from the prior-year period.
* Operating profit was $306 million, down 19%, with a related margin of
17.1%. The related margin decreased 340 basis points due to lower organic
revenues, planned investments in customer service and customer
administration and higher depreciation and amortization from product
investments made in prior periods.
* Eikon desktops totaled over 19,000 at the end of the second quarter, up
approximately 20% from the end of the first quarter of 2012.
Trading
* Revenues decreased 2% with growth in Commodities & Energy and Data Feeds
businesses offset by desktop cancellations in Exchange Traded Instruments
and Fixed Income.
* Recoveries revenues increased 2%.
Investors
* Revenues declined 1%. A 4% increase in Enterprise Content revenues was
offset by a 5% decline in Investment Management revenues due to weakness in
Europe and global banks.
* Corporate revenues were up 2%. Wealth Management and Banking & Advisory
(formerly Investment Banking) revenues were unchanged versus the prior-year
period.
Marketplaces
* Revenues increased 6% (1% organic) driven by acquisitions and Tradeweb,
which was up 24% (6% organic).
* Foreign exchange-related revenues declined 1% due to lower transaction
volumes compared to the prior-year period.
Governance, Risk & Compliance
* Revenues grew 56% (18% organic) to $52 million driven by acquisitions, new
sales and strong demand for risk and compliance solutions.
* Thomson Reuters Eikon for Compliance Management, a version of the flagship
Eikon desktop dedicated to trading floor compliance, was launched in July
2012.
Legal
* Revenues increased 3%. US Law Firm Solutions grew 2% driven by a 17%
increase in Business of Law revenues (FindLaw and Elite) while research-
related revenues declined 2%. Corporate, Government and Academic revenues
rose 5%. Global businesses grew 5%.
* EBITDA was up slightly from the prior-year period and the associated margin
decreased 60 basis points to 39.0% primarily due to a change in business
mix.
* Operating profit was flat and the associated margin was 30.7% compared to
31.1% in the prior-year period.
* WestlawNext has been sold to approximately 69% of Westlaw's revenue base as
of the end of the second quarter 2012.
Tax & Accounting
* Revenues increased 25% (5% organic) driven by acquisitions and strong growth
in revenues from the ONESOURCE platform and software sales to professional
accounting firms.
* EBITDA increased 22% and the corresponding margin decreased 40 basis points
to 29.7% due mainly to acquisition dilution.
* Operating profit increased 19% and the corresponding margin decreased 70
basis points to 19.8%.
* Tax & Accounting is a seasonal business with a significant percentage of its
operating profit traditionally generated in the fourth quarter. Small
movements in the timing of revenues and expenses can impact margins in any
given quarter for the Tax & Accounting business. Full-year margins are more
reflective of the segment's underlying performance.
Intellectual Property & Science
* Revenues were up 4% with growth across the business.
* EBITDA increased 6% with the corresponding margin increasing 110 basis
points to 34.7%.
* Operating profit increased 4% with the corresponding margin increasing 30
basis points to 27.3%.
* Small movements in the timing of revenues and expenses can impact margins in
any given quarter for the Intellectual Property & Science business. Full-
year margins are more reflective of the segment's underlying performance.
Consolidated Financial Highlights - Six Months
Six Months Ended June 30,
(Millions of U.S. dollars, except EPS and
margins)
IFRS Financial Measures 2012 2011 Change
Revenues $6,663 $6,777 -2%
Operating profit $1,704 $1,229 39%
Diluted earnings per share (EPS) $1.49 $0.97 54%
Cash flow from operations $1,143 $1,079 6%
Change
Before
Non-IFRS Financial Measures[1] 2012 2011 Change Currency
Revenues from ongoing businesses $6,376 $6,238 2% 4%
Adjusted EBITDA $1,717 $1,605 7% 8%
Adjusted EBITDA margin 26.9% 25.7% 120bp 120bp
Underlying operating profit $1,162 $1,205 -4% -2%
Underlying operating profit
margin 18.2% 19.3% -110bp -100bp
Adjusted earnings per share (EPS) $0.98 $0.88 11%
Free cash flow $654 $573 14%
Free cash flow from ongoing
operations $600 $466 29%
* Revenues from ongoing businesses were $6.4 billion, a 4% increase before
currency.
* Adjusted EBITDA increased 7% and the corresponding margin was 26.9% versus
25.7% in the prior-year period as higher revenues and the elimination of
integration expenses offset planned investments in customer service and
customer administration.
* Underlying operating profit decreased 4% and the corresponding margin was
18.2% versus 19.3% in the prior-year period due to higher depreciation and
amortization expense related to new product launches and planned increases
in expenses.
* Adjusted EPS was $0.98 compared to $0.88 in the prior-year period. The
increase was primarily attributable to the elimination of integration
expenses.
* Free cash flow was $654 million, up 14% compared to the prior-year period.
Free cash flow from ongoing operations was $600 million, up 29% from the
same period in 2011.
Corporate & Other (Including Media)
Second-quarter Media revenues were $83 million, up 1% from the prior-year
period. Second-quarter Corporate & Other costs were $55 million compared to $62
million in the prior-year period. Media revenues for the first six months of
2012 were $165 million, up 1% from the prior-year period. Corporate & Other
costs for the first six months of 2012 were $135 million compared to $138
million in the same period of 2011.
Recent Developments
On July 18, 2012, the company commenced a tender offer to acquire all of the
outstanding shares of FXall, the leading independent global provider of
electronic foreign exchange trading solutions to corporations and asset
managers.
On July 26, 2012, the company announced it had signed a definitive agreement to
purchase MarkMonitor, a global leader in online brand protection.
Business Outlook (Before Currency)
Thomson Reuters today reaffirmed its business outlook for 2012 that was
previously communicated in February.
Thomson Reuters expects its revenues to grow low single-digits in 2012.
Thomson Reuters expects its adjusted EBITDA margin to range between 27% and 28%
in 2012.
The company forecasts its underlying operating profit margin to range between
18% and 19% in 2012 due to higher depreciation and amortization expense.
Thomson Reuters expects reported free cash flow to grow 5% to 10% and free cash
flow from ongoing operations to grow 15% to 20% in 2012.
The information in this section is forward-looking and should be read in
conjunction with the section below entitled "Special Note Regarding Forward-
Looking Statements, Material Assumptions and Material Risks."
Dividend and Share Repurchases
As previously announced, Thomson Reuters increased its 2012 annual dividend by
$0.04 per share to $1.28 per share. A quarterly dividend of $0.32 per share is
payable on September 17, 2012, to shareholders of record as of August 23, 2012.
Year-to-date through July 31, 2012, the company repurchased 5.9 million shares
for an aggregate cost of approximately $168 million pursuant to its Normal
Course Issuer Bid (NCIB). The company repurchased 4.3 million shares under the
current NCIB program which was renewed in May 2012 and authorizes the company to
purchase up to 15 million shares.
Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for
businesses and professionals. We combine industry expertise with innovative
technology to deliver critical information to leading decision makers in the
financial and risk, legal, tax and accounting, intellectual property and science
and media markets, powered by the world's most trusted news organization. With
headquarters in New York and major operations in London and Eagan, Minnesota,
Thomson Reuters employs approximately 60,000 people and operates in over 100
countries. Thomson Reuters shares are listed on the Toronto and New York Stock
Exchanges (symbol: TRI). For more information, go to www.thomsonreuters.com.
NON-IFRS FINANCIAL MEASURES
Thomson Reuters prepares its financial statements in accordance with
International Financial Reporting Standards (IFRS), as issued by the
International Accounting Standards Board (IASB).
This news release includes certain non-IFRS financial measures. Thomson Reuters
uses these non-IFRS financial measures as supplemental indicators of its
operating performance and financial position. These measures do not have any
standardized meanings prescribed by IFRS and therefore are unlikely to be
comparable to the calculation of similar measures used by other companies, and
should not be viewed as alternatives to measures of financial performance
calculated in accordance with IFRS. Non-IFRS financial measures are defined and
reconciled to the most directly comparable IFRS measures in the appended tables.
IMPORTANT INFORMATION
This news release is for informational purposes only and is not an offer to buy
or the solicitation of an offer to sell any of the FXall common shares. The
offer to buy the outstanding shares of common stock of FXall is being made
pursuant to a tender offer statement on Schedule TO containing an offer to
purchase, form of letter of transmittal and related materials filed by CB
Transaction Corp. with the Securities and Exchange Commission on July
18, 2012. FXall has filed a solicitation/recommendation statement on Schedule
14D-9 with respect to the tender offer with the Securities and Exchange
Commission. The tender offer statement (including the offer to purchase, related
letter of transmittal and other tender offer documents) and the
solicitation/recommendation statement, as they may be amended from time to time,
contain important information that should be read carefully before making any
decision to tender securities in the tender offer. These materials have been or
will be sent free of charge to all stockholders of FXall. Shareholders may also
obtain a free copy of these materials (and all other tender offer documents
filed with the Securities and Exchange Commission) on the Securities and
Exchange Commission's website at www.sec.gov. The Schedule TO (including the
offer to purchase and related materials) and the Schedule 14D-9 (including the
solicitation/recommendation statement), may also be obtained for free by
contacting Georgeson Inc., the information agent for the tender offer, toll-free
at (866) 277-8239.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL ASSUMPTIONS AND
MATERIAL RISKS
Certain statements in this news release, including, but not limited to,
statements in the "Business Outlook (Before Currency)" section and Mr. Smith's
comments, are forward-looking. These forward-looking statements are based on
certain assumptions and reflect our company's current expectations. As a result,
forward-looking statements are subject to a number of risks and uncertainties
that could cause actual results or events to differ materially from current
expectations. There is no assurance that the events described in any forward-
looking statement will materialize. A business outlook is provided for the
purpose of presenting information about current expectations for 2012. This
information may not be appropriate for other purposes. You are cautioned not to
place undue reliance on forward-looking statements which reflect expectations
only as of the date of this news release. Except as may be required by
applicable law, Thomson Reuters disclaims any obligation to update or revise any
forward-looking statements.
The company's 2012 business outlook is based on various external and internal
assumptions. Economic and market assumptions include, but are not limited to,
positive GDP growth in the countries where Thomson Reuters operates led by
rapidly developing economies and a continued increase in the number of
professionals around the world and their demand for high quality information and
services. Internal financial and operational assumptions include, but are not
limited to, the successful execution of the company's ongoing product release
programs, globalization strategy, other growth initiatives and efficiency
initiatives.
Some of the material risk factors that could cause actual results or events to
differ materially from those expressed in or implied by forward-looking
statements in this news release include, but are not limited to, changes in the
general economy (including the current European Union debt crisis); actions of
competitors; failure to develop new products, services, applications and
functionalities to meet customers' needs, attract new customers or expand into
new geographic markets; increased accessibility to free or relatively
inexpensive information sources; failures or disruptions of network systems or
the Internet; failure to maintain a high renewal rate for subscription-based
services; dependency on third parties for data, information and other services;
changes to law and regulations, including the impact of the Dodd-Frank
legislation and similar financial services laws around the world; failure to
adapt to recent organizational changes; failure to recruit, motivate and retain
high quality management and key employees; failure to meet the challenges
involved in operating globally; failure to protect the brands and reputation of
Thomson Reuters; additional impairment of goodwill and identifiable intangible
assets; inadequate protection of intellectual property rights; threat of legal
actions and claims; risk of antitrust/competition-related claims or
investigations; downgrading of credit ratings and adverse conditions in the
credit markets; fluctuations in foreign currency exchange and interest rates;
the effect of factors outside of the control of Thomson Reuters on funding
obligations in respect of pension and post-retirement benefit arrangements;
actions or potential actions that could be taken by the company's principal
shareholder, The Woodbridge Company Limited; and failure to derive fully the
anticipated benefits from existing or future acquisitions, joint ventures,
investments or dispositions. These and other factors are discussed in materials
that Thomson Reuters from time to time files with, or furnishes to, the Canadian
securities regulatory authorities and the U.S. Securities and Exchange
Commission. Thomson Reuters annual and quarterly reports are also available in
the "Investor Relations" section of www.thomsonreuters.com.
CONTACT
MEDIA INVESTORS
Calvin Mitchell Frank J. Golden
Senior Vice President, Corporate Affairs Senior Vice President, Investor
+1 646 223 5285 Relations
calvin.mitchell(at)thomsonreuters.com +1 646 223 5288
frank.golden(at)thomsonreuters.com
Thomson Reuters will webcast a discussion of its second-quarter 2012 results
today beginning at 8:30 a.m. Eastern Daylight Time (EDT). You can access the
webcast by visiting the "Investor Relations" section of www.thomsonreuters.com.
An archive of the webcast will be available following the presentation.
Thomson Reuters Corporation
Business Segment Information
(millions of U.S. dollars)
(unaudited)
Three Months
Ended
June 30, Change
------------------- ------------------------
Before
2012 2011 ((1)) Total Currency Organic
Revenues
Trading $840 $896 -6% -2% -2%
Investors 608 627 -3% -1% -1%
Marketplaces 292 282 4% 6% 1%
Governance, Risk &
Compliance 52 34 53% 56% 18%
-------------------
Financial & Risk 1,792 1,839 -3% 1% -1%
Legal 818 803 2% 3% 2%
Tax & Accounting 283 229 24% 25% 5%
Intellectual Property &
Science 216 211 2% 4% 4%
Corporate & Other (includes
Media) 83 84 -1% 1% 1%
Eliminations (3) (5)
-------------------
Revenues from ongoing
businesses( (2)) 3,189 3,161 1% 3% 1%
Other businesses( (3)) 120 286
-------------------
Revenues $3,309 $3,447 -4%
Change Margin
---------------- ------------
Before
Adjusted EBITDA ((4)) Total Currency 2012 2011
Financial & Risk $460 $526 -13% -9% 25.7% 28.6%
Legal 319 318 0% 1% 39.0% 39.6%
Tax & Accounting 84 69 22% 23% 29.7% 30.1%
Intellectual Property &
Science 75 71 6% 7% 34.7% 33.6%
Corporate & Other (includes
Media) (46) (54)
Integration programs
expenses - (42)
-------------------
Adjusted EBITDA $892 $888 0% 3% 28.0% 28.1%
-------------------
Underlying Operating
Profit((5))
Financial & Risk $306 $377 -19% -15% 17.1% 20.5%
Legal 251 250 0% 0% 30.7% 31.1%
Tax & Accounting 56 47 19% 21% 19.8% 20.5%
Intellectual Property &
Science 59 57 4% 5% 27.3% 27.0%
Corporate & Other (includes
Media) (55) (62)
-------------------
Underlying operating profit $617 $669 -8% -5% 19.3% 21.2%
-------------------
Thomson Reuters Corporation
Business Segment Information
(millions of U.S. dollars)
(unaudited)
Six Months Ended
June 30, Change
--------------------- ------------------------
Before
2012 2011 ((1)) Total Currency Organic
Revenues
Trading $1,699 $1,781 -5% -2% -2%
Investors 1,211 1,250 -3% -2% -2%
Marketplaces 590 555 6% 8% 3%
Governance, Risk &
Compliance 103 57 81% 83% 17%
---------------------
Financial & Risk 3,603 3,643 -1% 1% -1%
Legal 1,595 1,557 2% 3% 2%
Tax & Accounting 593 467 27% 28% 7%
Intellectual Property &
Science 425 412 3% 4% 4%
Corporate & Other
(includes Media) 165 166 -1% 1% 1%
Eliminations (5) (7)
---------------------
Revenues from ongoing
businesses( (2)) 6,376 6,238 2% 4% 1%
Other businesses( (3)) 287 539
---------------------
Revenues $6,663 $6,777 -2%
---------------------
Change Margin
---------------- -------------
Before
Adjusted EBITDA ((4)) Total Currency 2012 2011
Financial & Risk $919 $991 -7% -4% 25.5% 27.2%
Legal 589 575 2% 2% 36.9% 36.9%
Tax & Accounting 180 133 35% 36% 30.4% 28.5%
Intellectual Property &
Science 147 137 7% 7% 34.6% 33.3%
Corporate & Other
(includes Media) (118) (119)
Integration programs
expenses - (112)
---------------------
Adjusted EBITDA $1,717 $1,605 7% 8% 26.9% 25.7%
---------------------
Underlying Operating
Profit((5))
Financial & Risk $608 $704 -14% -10% 16.9% 19.3%
Legal 451 440 3% 2% 28.3% 28.3%
Tax & Accounting 124 90 38% 39% 20.9% 19.3%
Intellectual Property &
Science 114 109 5% 5% 26.8% 26.5%
Corporate & Other
(includes Media) (135) (138)
---------------------
Underlying operating
profit $1,162 $1,205 -4% -2% 18.2% 19.3%
---------------------
Thomson Reuters Corporation
Reconciliation of Operating Profit to Adjusted EBITDA( (4))
(millions of U.S. dollars)
(unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
------------------------- ----------------------
2012 2011 Change 2012 2011 Change
Operating profit $1,318 $833 58% $1,704 $1,229 39%
Adjustments:
Amortization of other
identifiable intangible assets 149 150 301 294
Integration programs expenses - 42 - 112
Fair value adjustments (43) (8) (13) (10)
Other operating gains, net (798) (286) (820) (319)
Operating profit from Other
businesses( (1), )((3)) (9) (62) (10) (101)
------------------ ----------------
Underlying operating profit
((1)) $617 $669 -8% $1,162 $1,205 -4%
Adjustments:
Integration programs expenses - (42) - (112)
Depreciation and amortization
of computer software
(excluding Other businesses(
(1), (3))) 275 261 555 512
------------------ ----------------
Adjusted EBITDA ((1)) $892 $888 0% $1,717 $1,605 7%
------------------ ----------------
Underlying operating profit
margin 19.3% 21.2% -190bp 18.2% 19.3% -110bp
------------------ ----------------
Adjusted EBITDA margin 28.0% 28.1% -10bp 26.9% 25.7% 120bp
------------------ ----------------
Thomson Reuters Corporation
Reconciliation of Earnings from Continuing Operations to Adjusted EBITDA ((4))
(millions of U.S. dollars)
(unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
------------------------- ----------------------
2012 2011 Change 2012 2011 Change
Earnings from continuing
operations $936 $572 64% $1,264 $827 53%
Adjustments:
Tax expense 279 174 246 226
Other finance costs (income) 16 (9) (14) (16)
Net interest expense 91 98 205 199
Amortization of other
identifiable intangible assets 149 150 301 294
Amortization of computer
software 166 162 341 326
Depreciation 109 110 219 217
------------------ ----------------
EBITDA $1,746 $1,257 39% $2,562 $2,073 24%
Adjustments:
Share of post tax (earnings)
losses in equity method
investees (4) (2) 3 (7)
Other operating gains, net (798) (286) (820) (319)
Fair value adjustments (43) (8) (13) (10)
EBITDA from Other businesses(
(1), (3)) (9) (73) (15) (132)
------------------ ----------------
Adjusted EBITDA ((1)) $892 $888 0% $1,717 $1,605 7%
------------------ ----------------
Thomson Reuters Corporation
Reconciliation of Underlying Operating Profit( (5)) to Adjusted EBITDA( (4)) by
Business Segment
(millions of U.S. dollars)
(unaudited)
Three Months Ended Three Months Ended
June 30, 2012 June 30, 2011 ((1))
---------------------------------- ---------------------------------
Add:
Depreciation Add:
and Depreciation
Amortization and
Underlying of Computer Underlying Amortization
Operating Software( Adjusted Operating of Computer Adjusted
Profit )** EBITDA Profit Software ** EBITDA
---------------------------------- ---------------------------------
Financial &
Risk $306 $154 $460 $377 $149 $526
Legal 251 68 319 250 68 318
Tax &
Accounting 56 28 84 47 22 69
Intellectual
Property &
Science 59 16 75 57 14 71
Corporate &
Other
(includes
Media) (55) 9 (46) (62) 8 (54)
Integration
programs
expenses na na - na na (42)
---------------------------------- ---------------------------------
$617 $275 $892 $669 $261 $888
---------------------------------- ---------------------------------
---------------------------------- ---------------------------------
Six Months Ended Six Months Ended
June 30, 2012 June 30, 2011 ((1))
---------------------------------- ---------------------------------
Add:
Depreciation Add:
and Depreciation
Amortization and
Underlying of Computer Underlying Amortization
Operating Software( Adjusted Operating of Computer Adjusted
Profit )** EBITDA Profit Software ** EBITDA
---------------------------------- ---------------------------------
Financial &
Risk $608 $311 $919 $704 $287 $991
Legal 451 138 589 440 135 575
Tax &
Accounting 124 56 180 90 43 133
Intellectual
Property &
Science 114 33 147 109 28 137
Corporate &
Other
(includes
Media) (135) 17 (118) (138) 19 (119)
Integration
programs
expenses na na - na na (112)
---------------------------------- ---------------------------------
$1,162 $555 $1,717 $1,205 $512 $1,605
---------------------------------- ---------------------------------
------------------------------------------
** excludes Other businesses ((1), (3))
na = not applicable
Thomson Reuters Corporation
Reconciliation of Earnings Attributable to Common Shareholders
to Adjusted Earnings from Continuing Operations( (6))
(millions of U.S. dollars, except as otherwise indicated and except for per
share data)
(unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
------------------ ---------------
2012 2011 2012 2011
Earnings attributable to common shareholders $922 $563 $1,236 $813
Adjustments:
Operating profit from Other businesses( (1), (62) (101)
(3)) (9) (10)
Fair value adjustments (43) (8) (13) (10)
Other operating gains, net (798) (286) (820) (319)
Other finance costs (income) 16 (9) (14) (16)
Share of post tax (earnings) losses in
equity method investees (4) (2) 3 (7)
Tax on above items 253 115 187 127
Interim period effective tax rate 15 5
normalization( (7)) 46 52
Discrete tax items (83) (46) (109) (46)
Amortization of other identifiable 150 294
intangible assets 149 301
Discontinued operations 1 - 3 (2)
Dividends declared on preference shares (1) (1) (2) (2)
------------------ ---------------
Adjusted earnings from continuing operations $429 $736
((1)) $449 $814
------------------ ---------------
Adjusted earnings per share from continuing
operations ((1)) $0.54 $0.51 $0.98 $0.88
------------------ ---------------
------------------ ---------------
Diluted weighted average common shares (in 839.0
millions) 830.7 839.8 830.5
------------------ ---------------
Thomson Reuters Corporation
Reconciliation of Net Cash Provided by Operating Activities
to Free Cash Flow from Ongoing Operations( (8))
(millions of U.S. dollars)
(unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
--------------------------------
2012 2011 2012 2011
Net cash provided by operating activities $870 $879 $1,143 $1,079
Capital expenditures, less proceeds from
disposals (211) (247) (494) (541)
Other investing activities 2 2 7 37
Dividends paid on preference shares (1) (1) (2) (2)
--------------------------------
Free cash flow 660 633 654 573
Remove: Other businesses (19) (22) (54) (107)
--------------------------------
Free cash flow from ongoing operations $641 $611 $600 $466
--------------------------------
Footnotes
(1) Prior-period amounts have been reclassified to reflect the current
presentation.
(2) Revenues from ongoing businesses are revenues from reportable segments and
Corporate & Other (which includes the Media business) less eliminations.
Other businesses (see note (3) below) are excluded.
(3) Other businesses are businesses that have been or are expected to be
exited through sale or closure that did not qualify for discontinued
operations classification.
Three Months Six Months
(millions of U.S. dollars) Ended Ended
June 30, June 30,
------------------ ---------------
Other businesses 2012 2011 2012 2011
Revenues $120 $286 $287 $539
Operating profit $9 $62 $10 $101
Depreciation and amortization of computer
software - 11 5 31
------------------ ---------------
EBITDA $9 $73 $15 $132
------------------ ---------------
(4) Thomson Reuters defines adjusted EBITDA as underlying operating profit
excluding the related depreciation and amortization of computer software
but including integration programs expense. Adjusted EBITDA margin is
adjusted EBITDA expressed as a percentage of revenues from ongoing
businesses.
(5) Underlying operating profit is operating profit from reportable segments
and Corporate & Other (includes Media). Underlying operating profit margin
is the underlying operating profit expressed as a percentage of revenues
from ongoing businesses.
(6) Adjusted earnings from continuing operations and adjusted earnings per
share from continuing operations include dividends declared on preference
shares and integration programs expense, but exclude the pre-tax impacts
of amortization of other identifiable intangible assets as well as the
post-tax impacts of fair value adjustments, other operating (gains) and
losses, certain impairment charges, the results of Other businesses (see
note (3) above), other finance (income) costs, Thomson Reuters share of
post-tax (earnings) losses in equity method investees, discontinued
operations and other items affecting comparability. Adjusted earnings per
share from continuing operations is calculated using diluted weighted
average shares and does not represent actual earnings or loss per share
attributable to shareholders.
(7) Adjustment to reflect income taxes based on estimated full-year effective
tax rate. Reported earnings or loss for interim periods reflect income
taxes based on the estimated effective tax rates of each of the
jurisdictions in which Thomson Reuters operates. The adjustment
reallocates estimated full-year income taxes between interim periods, but
has no effect on full year income taxes.
(8) Free cash flow is net cash provided by operating activities less capital
expenditures, other investing activities and dividends paid on the
company's preference shares. Other businesses (see note (3) above) are
also removed to arrive at free cash flow from ongoing operations.
Thomson Reuters Corporation
Consolidated Income Statement
(millions of U.S. dollars, except per share data)
(unaudited)
Three Months Ended Six Months Ended
------------------------- ------------------------
June 30, June 30,
------------------------- ------------------------
2012 2011 2012 2011
Revenues $3,309 $3,447 $6,663 $6,777
Operating expenses (2,365) (2,478) (4,918) (5,030)
Depreciation (109) (110) (219) (217)
Amortization of computer
software (166) (162) (341) (326)
Amortization of other
identifiable intangible
assets (149) (150) (301) (294)
Other operating gains, net 798 286 820 319
------------------------- ------------------------
Operating profit 1,318 833 1,704 1,229
Finance costs, net:
Net interest expense (91) (98) (205) (199)
Other finance (costs)
income (16) 9 14 16
------------------------- ------------------------
Income before tax and equity
method investees 1,211 744 1,513 1,046
Share of post tax earnings
(losses) in equity method
investees 4 2 (3) 7
Tax expense (279) (174) (246) (226)
------------------------- ------------------------
Earnings from continuing
operations 936 572 1,264 827
(Loss) earnings from
discontinued operations, net
of tax (1) - (3) 2
------------------------- ------------------------
Net earnings $935 $572 $1,261 $829
------------------------- ------------------------
Earnings attributable to:
Common shareholders 922 563 1,236 813
Non-controlling interests 13 9 25 16
Basic and diluted earnings
per share $1.11 $0.67 $1.49 $0.97
------------------------- ------------------------
Basic weighted average
common shares 828,482,671 837,096,717 828,661,765 836,129,383
------------------------- ------------------------
Diluted weighted average
common shares 830,744,813 839,846,235 830,507,227 839,025,585
------------------------- ------------------------
Thomson Reuters Corporation
Consolidated Statement of Financial Position
(millions of U.S. dollars)
(unaudited)
June 30, December 31,
2012 2011
---------- -------------
Assets
Cash and cash equivalents $1,801 $422
Trade and other receivables 1,733 1,984
Other financial assets 91 100
Prepaid expenses and other current assets 513 641
---------- -------------
Current assets excluding assets held for sale 4,138 3,147
Assets held for sale 140 767
---------- -------------
Current assets 4,278 3,914
Computer hardware and other property, net 1,355 1,509
Computer software, net 1,608 1,640
Other identifiable intangible assets, net 8,077 8,471
Goodwill 15,706 15,932
Other financial assets 317 425
Other non-current assets 540 535
Deferred tax 43 50
---------- -------------
Total assets $31,924 $32,476
---------- -------------
Liabilities and equity
Liabilities
Current indebtedness $8 $434
Payables, accruals and provisions 2,476 2,675
Deferred revenue 1,220 1,379
Other financial liabilities 63 81
---------- -------------
Current liabilities excluding liabilities associated
with assets held for sale 3,767 4,569
Liabilities associated with assets held for sale 17 35
---------- -------------
Current liabilities 3,784 4,604
Long-term indebtedness 7,158 7,160
Provisions and other non-current liabilities 2,681 2,513
Other financial liabilities 32 27
Deferred tax 1,218 1,422
---------- -------------
Total liabilities 14,873 15,726
Equity
Capital 10,292 10,288
Retained earnings 8,041 7,633
Accumulated other comprehensive loss (1,629) (1,516)
---------- -------------
Total shareholders' equity 16,704 16,405
Non-controlling interests 347 345
---------- -------------
Total equity 17,051 16,750
---------- -------------
Total liabilities and equity $31,924 $32,476
---------- -------------
Thomson Reuters Corporation
Consolidated Statement of Cash Flow
(millions of U.S. dollars)
(unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
-----------------------------------
2012 2011 2012 2011
Cash provided by (used in):
Operating activities
Net earnings $935 $572 $1,261 $829
Adjustments for:
Depreciation 109 110 219 217
Amortization of computer software 166 162 341 326
Amortization of other identifiable
intangible assets 149 150 301 294
Net gains on disposals of businesses (789) (382) (826) (386)
Deferred tax 53 (142) (119) (174)
Other (68) 129 24 164
Changes in working capital and other items 315 280 (58) (191)
-----------------------------------
Net cash provided by operating activities 870 879 1,143 1,079
-----------------------------------
Investing activities
Acquisitions, net of cash acquired (101) (672) (260) (726)
Proceeds from disposals 1,369 495 1,983 510
Capital expenditures, less proceeds from
disposals (211) (247) (494) (541)
Other investing activities 2 2 7 37
-----------------------------------
Investing cash flows from continuing
operations 1,059 (422) 1,236 (720)
Investing cash flows from discontinued
operations 90 18 90 39
-----------------------------------
Net cash provided by (used in) investing
activities 1,149 (404) 1,326 (681)
-----------------------------------
Financing activities
Repayments of debt (2) (48) (2) (53)
Net repayments under short-term loan
facilities (287) (63) (423) (20)
Repurchases of common shares (144) - (168) -
Dividends paid on preference shares (1) (1) (2) (2)
Dividends paid on common shares (256) (248) (512) (465)
Other financing activities 12 (14) 20 (14)
-----------------------------------
Net cash used in financing activities (678) (374) (1,087) (554)
-----------------------------------
Translation adjustments on cash and cash
equivalents (7) 1 (3) 5
-----------------------------------
Increase (decrease) in cash and cash
equivalents 1,334 102 1,379 (151)
Cash and cash equivalents at beginning of
period 467 611 422 864
-----------------------------------
Cash and cash equivalents at end of period $1,801 $713 $1,801 $713
-----------------------------------
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Thomson Reuters Corporation via Thomson Reuters ONE
[HUG#1630620]
Unternehmensinformation / Kurzprofil:
Datum: 31.07.2012 - 13:09 Uhr
Sprache: Deutsch
News-ID 170264
Anzahl Zeichen: 63853
contact information:
Kategorie:
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