Wolters Kluwer 2013 First-Quarter Trading Update
(Thomson Reuters ONE) -
Alphen aan den Rijn (May 8, 2013) - Wolters Kluwer, a global leader in
professional information services, today released its scheduled 2013 first
quarter trading update reaffirming full year guidance.
Highlights
* Full-year 2013 guidance affirmed.
* First-quarter revenue flat at constant currencies, down 1% organically,
reflecting difficult comparables in several areas.
* Digital products achieved good organic growth.
* Recurring revenues maintained positive organic growth; books and other
transactional revenues declined.
* First-quarter ordinary EBITA margin declined modestly, partly due to
investments in growth initiatives and the timing of restructuring costs.
* Year to date, divestitures raise approximately ?90 million before tax, while
net acquisition spend was approximately ?100 million.
* New ten year ?700 million Eurobond completed with 2.875% coupon rate;
existing ?225 million perpetual cumulative subordinated bonds to be redeemed
and de-listed in May 2013.
* Net-debt-to-EBITDA improved to 2.3 as of March 31, 2013, better than our
target of 2.5.
Nancy McKinstry, CEO and Chairman of the Executive Board, commented:
"The first quarter faced tough comparables against the prior year, but overall
performance was in line with our expectations. Our leading, growing businesses
all achieved good to strong organic revenue growth in the quarter, including
Corporate Legal Services, Tax & Accounting software, Clinical Solutions, as well
as our core Finance & Audit solutions. So far this year, we have completed a
number of strategic divestitures and acquisitions which further focus and
transform the portfolio. We are continuing to invest in new and enhanced
solutions, while pursuing efficiencies to respond to challenging economic
conditions. Having also made significant progress on refinancing our balance
sheet, we are confident in delivering our guidance for the full year."
First Quarter Developments
First quarter revenues for the continuing operations were stable at constant
currencies, and declined 1% on an organic basis, reflecting tough comparables in
a number of areas. In the quarter, revenues contributed by acquisitions made in
2012 were partly offset by revenue associated with divestitures made last year.
Digital products achieved good growth on an organic basis. Recurring revenues
saw positive organic growth, but this was offset by declines in books and other
transactional and cyclical revenues. The ordinary EBITA margin eased in the
quarter compared to a year ago, due to product mix, investments in growth
initiatives, and increased restructuring expenses. Restructuring, which was
mainly severance, is expected to yield benefits in the second half of the year.
In Legal & Regulatory, our North American operation saw good organic growth, due
to Corporate Legal Services (CLS). CLS transactional revenue increased, despite
difficult comparables and lower M&A-related filings and trademark searches.
Trends in our European Legal & Regulatory business remain challenging, as
expected, with print products, training, and public sector revenues seeing
continued pressure. Year to date, the division has made two divestitures in
North America: Best Case Solutions and the minority stake in AccessData. For the
full year, we continue to expect growth in North America but weakness in Europe
and divisional margin contraction.
In Tax & Accounting, seasonal revenue and margin patterns are similar to 2012,
as anticipated. Our North American Tax & Accounting business achieved good
organic growth in software revenues, but this was offset by declines in bank
product fees and continued weakness in print publishing revenue. Our European
Tax & Accounting revenues were broadly stable on an organic basis, showing good
growth in software but declines in print products and cyclical services, such as
training. Asia Pacific revenue was impacted by lower book sales.
Health performance in the first quarter was muted, however stronger revenue
growth and margin development is expected as the year progresses. Clinical
Solutions continued to deliver double digit organic growth, driven by strong
performances from UpToDate, Pharmacy OneSource, and Medicom. The acquisition of
Health Language, a pioneer in medical terminology management, was completed in
January; the business is on pace to achieve double digit organic growth in
2013. Medical Research revenues were lower reflecting weaker advertising,
reprint, and print journal subscription revenues. Professional & Education,
which has a seasonally small first quarter, was impacted by the timing of book
orders in addition to weak markets for print products in both U.S. and
international markets.
Financial & Compliance Services faced tough comparables in Originations and
Audit, and challenging market conditions in European transport services, as
anticipated in our outlook provided in February. Originations saw lower mortgage
transactional volumes and fewer new customer implementations than a year ago.
Audit achieved solid growth with its core internal audit software TeamMate, but
this was largely offset by revenue attrition related to migrating Axentis
customers. Finance, Risk & Compliance, including FRSGlobal, achieved good
organic growth. In the year to date, the division has acquired iSentry, a
software and workflow solutions provider in the U.K., and has increased its
interest in AccessMatrix, a technology partner in India.
Cash Flow, Acquisitions, Divestitures, and Net Debt
First quarter cash conversion was lower than in the same period a year ago, due
to less favorable working capital movements as anticipated. Ordinary free cash
flow declined in the quarter but remains on track with our full year
expectations. In the year to date, a number of disposals have raised pre-tax
proceeds of approximately ?90 million, removing annual EBITA of approximately ?7
million. The largest divestment was Best Case Solutions. In the year to date,
net acquisition spending was approximately ?100 million, including Health
Language and a number of smaller investments. The impact of acquisitions and
divestitures made in the year to date is expected to be slightly dilutive to
earnings in 2013 due to the margins of the disposals.
In March, we succesfully completed a ?700 million 10-year Eurobond issue, with a
coupon of 2.875%. Proceeds will be used to redeem the 6.875% perpetual
cumulative subordinated bonds in May 2013 and our 5.125% bonds which mature in
early 2014. The listing of the perpetual bonds on Euronext Amsterdam will be
terminated as of May 14, 2013. Twelve month rolling net-debt-to-EBITDA was 2.3
at the end of the first quarter, improving further from year-end 2012 (2.4) and
better than our leverage target of 2.5.
In line with our progressive dividend policy, a dividend of ?0.69 per share will
be paid in cash on May 16, 2013.
Full-Year 2013 Outlook
Our full year outlook remains unchanged from the guidance set out in February.
Organic growth and margins are expected to improve in the second half of the
year as comparables ease and the benefits of restructuring flow through. The
table below provides our outlook for the continuing operations in 2013.
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Performance indicators 2013 Guidance
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Ordinary EBITA margin 21.5-22.0%
Ordinary free cash flow >= ?475 million
Return on invested capital >= 8%
Diluted ordinary EPS Low single-digit growth
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Guidance for ordinary free cash flow and diluted ordinary EPS is in constant
currencies (EUR/USD 1.29).
Guidance reflects IAS19R and removal of the pension financing credit or charge
from benchmark figures, and includes the estimated impact of performance share
issuance offset by share repurchases.
Guidance for ordinary free cash flow and diluted ordinary earnings per share
(EPS) is based on constant currency exchange rates. Wolters Kluwer generates
more than half of its ordinary EBITA in North America. As a rule of thumb, based
on our 2012 currency profile, a 1 U.S. cent move in the average EUR/USD exchange
rate for the year causes an opposite 0.8 euro-cent change in diluted ordinary
EPS. Benchmark net financing costs, which exclude the pension financing credit
or charge, are expected to be approximately ?130 million in constant currencies,
reflecting the negative carry caused by early refinancing of our bonds due in
2014. The benchmark effective tax rate on ordinary income before tax is expected
to be broadly in line with the benchmark tax rate of 2012 (27.8%).
About Wolters Kluwer
Wolters Kluwer is a global leader in professional information services.
Professionals in the areas of legal, business, tax, accounting, finance, audit,
risk, compliance and healthcare rely on Wolters Kluwer's market leading
information-enabled tools and software solutions to manage their business
efficiently, deliver results to their clients, and succeed in an ever more
dynamic world. Wolters Kluwer reported 2012 annual revenues of ?3.6 billion. The
group employs over 19,000 people worldwide and maintains operations in over 40
countries across Europe, North America, Asia Pacific and Latin America. The
company is headquartered in Alphen aan den Rijn, the Netherlands. Wolters Kluwer
shares are listed on NYSE Euronext Amsterdam (symbol: WKL) and are included in
the AEX and Euronext 100 indices.
For more information about our products and organization, visit
www.wolterskluwer.com, follow (at)Wolters_Kluwer on Twitter, or search for Wolters
Kluwer videos on YouTube.
Financial Calendar
May 16, 2013 Dividend payment date (ordinary shares)
May 23, 2013 ADR dividend payment date
July 31, 2013 Half-Year 2013 Results
November 6, 2013 Third-Quarter 2013 Trading Update
February 19, 2014 Full-Year 2013 Results
Media Investors/Analysts
Caroline Wouters Meg Geldens
Corporate Communications Investor Relations
t + 31 (0)172 641 459 t + 31 (0)172 641 407
press(at)wolterskluwer.com ir(at)wolterskluwer.com
Forward-looking Statements
This press release contains forward-looking statements. These statements may be
identified by words such as "expect", "should", "could", "shall" and similar
expressions. Wolters Kluwer cautions that such forward-looking statements are
qualified by certain risks and uncertainties that could cause actual results and
events to differ materially from what is contemplated by the forward-looking
statements. Factors which could cause actual results to differ from these
forward-looking statements may include, without limitation, general economic
conditions; conditions in the markets in which Wolters Kluwer is engaged;
behavior of customers, suppliers, and competitors; technological developments;
the implementation and execution of new ICT systems or outsourcing; and legal,
tax, and regulatory rules affecting Wolters Kluwer's businesses, as well as
risks related to mergers, acquisitions, and divestments. In addition, financial
risks such as currency movements, interest rate fluctuations, liquidity, and
credit risks could influence future results. The foregoing list of factors
should not be construed as exhaustive. Wolters Kluwer disclaims any intention or
obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
PDF version of Press Release:
http://hugin.info/130682/R/1700194/561134.pdf
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Source: Wolters Kluwer NV via Thomson Reuters ONE
[HUG#1700194]
Unternehmensinformation / Kurzprofil:
Datum: 08.05.2013 - 08:02 Uhr
Sprache: Deutsch
News-ID 257450
Anzahl Zeichen: 13598
contact information:
Town:
Alphen aan den Rijn
Kategorie:
Business News
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