Interactive Data Reports Fourth-Quarter and Full-Year 2014 Results
(firmenpresse) - NEW YORK NY -- (Marketwired) -- 02/12/15 -- Interactive Data Corporation today reported its financial results for the fourth quarter and full year ended December 31, 2014. Interactive Data's fourth quarter 2014 revenue was $239.3 million, a 3.1% increase from $232.2 million in the fourth quarter of 2013. Excluding the impact of changes in foreign exchange rates, Interactive Data's organic (non-GAAP) revenue for the fourth quarter of 2014 grew by 4.3% from the same quarter last year.
Interactive Data's fourth quarter 2014 income from operations was $41.2 million compared to income from operations of $41.8 million in the fourth quarter of 2013. Non-GAAP Adjusted EBITDA (which excludes items that are either not part of the Company's ongoing core operations, or do not require a cash outlay, or are not otherwise expected to recur in the ordinary course) for the fourth quarter of 2014 was $98.2 million, compared with $89.4 million in the same period one year ago.
"Interactive Data finished 2014 with strong operating performance and we are well positioned to generate continued revenue and profit growth in 2015," stated Stephen Daffron, Interactive Data's president and CEO. "Our fourth quarter organic revenue growth of 4.3% was driven by a combination of growth in our Pricing and Reference Data segment and growth in our real-time feeds and 7ticks trading infrastructure businesses. We generated Adjusted EBITDA of $98.2 million during the quarter, reflecting our continued commitment to cost containment and driving operating efficiencies."
Pricing and Reference Data Segment:
Interactive Data's Pricing and Reference Data segment reported fourth quarter 2014 revenue of $167.3 million, a 2.7% increase over $162.9 million in the fourth quarter of 2013. Excluding the impact of changes in foreign exchange rates, fourth quarter 2014 organic (non-GAAP) revenue for this segment increased by 3.5% from the same period last year. The segment's performance reflects growth in the Company's evaluated pricing and reference data services across all geographic regions.
Trading Solutions Segment:
Interactive Data's Trading Solutions segment generated fourth quarter 2014 revenue of $72.0 million, an increase of 3.9% over $69.3 million in the same period one year ago. Excluding the impact of changes in foreign exchange rates, fourth quarter 2014 organic (non-GAAP) revenue for this segment increased by 6.3% from the same period last year. Organic revenue growth was driven by recognition of both recurring and non-recurring revenue in the Company's 7ticks trading infrastructure services and real-time feeds product areas in connection with large client implementations. This growth was partially offset by declines in the segment's customized hosted web applications and workstations product areas.
Operating Expenses:
During the fourth quarter of 2014, the Company recorded $11.0 million of non-cash impairment expense related to previously capitalized development costs, and recorded $10.3 million of severance expense. Partially offsetting these charges was the positive impact of transactional foreign exchange on operating activities of $5.3 million and realized savings from other on-going cost cutting initiatives.
Refinancing Activity; Adjusted EBITDA:
As previously announced, in May 2014, Interactive Data refinanced its debt and entered into a new $2.1 billion senior secured credit facility, consisting of a five-year $160 million Revolver (currently unfunded) and a seven year $1.9 billion Term Loan. Additionally, the Company completed the offering of $350 million in aggregate principal amount 5.875% Senior Notes due 2019.
To facilitate period over period comparisons, the Company is reporting Adjusted EBITDA for all periods presented, as determined by reference to its May 2014 credit agreement. Accordingly, Adjusted EBITDA amounts reported for 2013 periods differ from previously reported Adjusted EBITDA amounts. Pro Forma Adjusted EBITDA is being reported only for the year ended December 31, 2014.
Balance Sheet Highlights:
As of December 31, 2014, Interactive Data had cash and cash equivalents of $319.7 million, compared with $304.6 million last quarter and $360.2 million of cash, cash equivalents and short term investments at the end of 2013. The Company's cash position as of December 31, 2014 reflects the use of approximately $94 million in cash, which together with the net proceeds of the new debt described above, was used to refinance the Company's existing debt, pay related costs and expenses, and fund a $272.9 million cash dividend to Igloo Holdings Corporation, our parent entity, who in turn made a cash distribution to its equity holders. The Company's total debt outstanding as of December 31, 2014 was approximately $2.2 billion compared to approximately $2.0 billion as of the same time last year.
For the full year ended December 31, 2014, Interactive Data reported revenue of $939.2 million, an increase of $34.1 million, or 3.8%, from $905.1 million in the same period last year. Excluding the effects of foreign exchange, organic revenue growth was 3.1% during 2014 due largely to continued expansion throughout the year within the Company's Pricing and Reference Data segment, as well as the Company's 7ticks trading solutions infrastructure services and real-time feeds product areas.
For the full year ended December 31, 2014, Interactive Data reported income from operations of $168.1 million, compared with $176.0 million in 2013. Non-GAAP Adjusted EBITDA (which excludes items that are not part of the Company's ongoing core operations, or do not require a cash outlay, or are not otherwise expected to recur in the ordinary course) was $362.4 million in 2014, compared with $351.6 million in 2013. For the year ended December 31, 2014, Pro Forma Adjusted EBITDA (which represents Adjusted EBITDA plus an additional adjustment related to the expected pro forma impact of certain planned cost savings initiatives) was $388.1 million. While this balance includes expected 12 month pro-forma run rate impact of cost savings initiatives currently quantified, additional cost savings initiatives are being actively explored.
Interactive Data Corporation will host a conference call to discuss the Company's fourth quarter 2014 results on Friday, February 13, 2015 at 8:30 a.m. ET. The dial-in number for the conference call is (785) 424-1666 and the related access code is IDCQ414. For those who cannot listen to this broadcast, a replay of the call will be available from February 13 at 12:00 p.m. until Friday, February 20, 2015 at 11:59 p.m., and it can be accessed by dialing (402) 220-2671 or (800) 727-6189.
In addition to presenting our results in accordance with generally accepted accounting principles (GAAP) in this press release, we also disclose the following non-GAAP information:
Management includes information regarding organic revenue. Organic revenue excludes the impact of foreign exchange rate fluctuations, as well as, if applicable, the contribution of businesses recently acquired (and related intercompany eliminations). Management believes reporting organic revenue is useful information for stakeholders as it facilitates a fuller understanding of period-to-period changes in revenue and underlying business trends.
Management includes organic revenue for our Pricing and Reference Data and Trading Solutions segments because management believes this additional level of detail provides further insight into underlying performance trends.
Management includes information regarding earnings before interest, other income, income taxes, depreciation and amortization (EBITDA), Adjusted EBITDA and Pro Forma Adjusted EBITDA. Adjusted EBITDA and Pro Forma Adjusted EBITDA are determined by reference to defined terms in the Company's May 2014 Credit Agreement. Adjusted EBITDA is defined as earnings before interest, other income, income taxes, depreciation and amortization, stock-based compensation expense, and other non-cash, non-operational or non-recurring items, in each case as applicable for the underlying periods. Pro Forma Adjusted EBITDA is defined as Adjusted EBITDA plus an additional adjustment related to the expected pro forma impact of certain planned cost savings initiatives. Management considers Adjusted EBITDA to be an important indicator of the Company's operational profitability and cash generation strength. Further, Management also believes reporting Adjusted EBITDA provides transparency into and useful information regarding the Company's operating results, because items that are either not part of the Company's ongoing core operating expenses, do not require a cash outlay, or are not otherwise expected to recur in the ordinary course of business are eliminated. Pro Forma Adjusted EBITDA is a metric that is used as a basis for determining certain leverage ratios under the Company's debt agreements. The leverage ratios are used in various ways, including determining the amount of any required excess cash flow payments. For this reason, management believes it is useful for investors to have information on this metric.
Management includes information regarding free cash flow, which we define as Adjusted EBITDA less capital expenditures. Management considers free cash flow to be an important measure of the Company's cash generation strength that supports the Company's ability to repay its debt obligations and invest in future growth through new business development activities or acquisitions.
Management uses these non-GAAP financial measures, in addition to GAAP financial measures, as the basis for measuring the Company's core operating performance and comparing current period performance to that of prior periods, and to the performance of our competitors. Such measures are also used by management in their financial and operating decision-making, and for forecasting and planning purposes.
The non-GAAP financial measures of the Company's results of operations included in this press release should not be considered in isolation from comparable measures determined in accordance with GAAP. The non-GAAP financial measures should not be considered to be superior to, or a substitute for, the Company's results of operations prepared in accordance with GAAP. Reconciliations of such non-GAAP financial measures to the comparable GAAP financial measures are set forth in the accompanying tables. The non-GAAP measures presented may not be comparable to similarly titled measures reported by other companies.
This press release may contain forward-looking statements. Forward-looking statements include all statements that are not historical statements and include statements discussing the Company's goals, beliefs, strategies, objectives, plans, future financial conditions, future challenges and opportunities. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by forward-looking statements include risks and uncertainties relating to: (i) the effectiveness of strategies designed to improve revenue and profit results; (ii) the impact of cost-cutting and cost containment pressures across the industries the Company serves; (iii) general worldwide economic conditions and related uncertainties; (iv) consolidation of financial services companies, within and across industries; (v) a decline in activity levels in the securities markets, weak or declining financial performance of market participants or the failure of market participants; (vi) the intensity of competition the Company faces; (vii) a prolonged outage at one of the Company's data centers or other major disruptions of the Company's computer operations or those of the Company's suppliers, including outages or disruptions that result in the failure to timely deliver services or otherwise adversely impact the quality of the Company's services; (viii) the Company's ability to maintain relationships with its key suppliers and providers of market data, including unanticipated costs and expenses that may arise as the result of unfavourable resolution of third party data use audits conducted by such suppliers from time to time; (ix) the Company's ability to maintain relationships with service bureaus and custodian banks; (x) the need to develop new products and services, and to adapt existing services to legal, regulatory, technology or other changes or new competitive offerings; (xi) the Company's cost and operational optimization plans may not yield the expected efficiencies or cost savings or may take longer than anticipated, including the Company's [unified technology platform project]; (xii) risks related to the Company's substantial leverage, including, without limitation, the need to dedicate substantial cash flow to pay interest and principal thereby reducing cash flow available to fund operations, capital expenditures and potential business opportunities and the Company's ability to raise additional capital (if required) to react to unexpected adverse changes in the economy, the Company's industry, or to repay the Company's Senior Notes due 2019; (xiii) risks related to the Sponsor control of the Company, including the power to cause the Company to dividend cash to service the Senior Notes Due 2017 issued by our parent company; (xiv) the Company is subject to regulatory oversight and it provides services to financial institutions who are subject to regulatory oversight, and enforcement actions by regulatory agencies can be time-consuming, costly and could harm the Company's reputation; (xv) the Company's ability to maintain its registered investment adviser status; (xvi) the risks of doing business internationally; (xvii) intellectual property related risks, including any allegations that the Company infringes the intellectual property rights of others; (xviii) the Company's ability to attract and retain qualified management and other key personnel; (xix) the Company's ability to negotiate and enter into any strategic acquisitions or alliances on favorable terms, if at all; and (xx) the Company's ability to realize the anticipated benefits from any strategic acquisitions or alliances that it may be a party to. While the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so, even if current management estimates change or assumptions prove invalid and, therefore, you should not rely on these forward-looking statements as representing the Company's views as of any date subsequent to today.
Interactive Data Corporation is a trusted leader in financial information. Thousands of financial institutions and active traders, as well as hundreds of software and service providers, subscribe to our fixed income evaluations, reference data, real-time market data, trading infrastructure services, fixed income analytics, desktop solutions and web-based solutions. Interactive Data's offerings support clients around the world with mission-critical functions, including portfolio valuation, regulatory compliance, risk management, electronic trading and wealth management. Interactive Data has over 2,500 employees in offices worldwide.
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COMPANY CONTACTS
Investors:
Vincent Chippari
Senior Vice President and Chief Financial Officer
781-687-8250
Media:
Anne O'Brien
Senior Vice President, Marketing
212-771-6956
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Datum: 12.02.2015 - 22:33 Uhr
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