MSCI Inc. Reports Fourth Quarter and Full Year 2012 Financial Results
(Note: Percentage changes are referenced to the comparable period in 2011, unless otherwise noted.)
-
Operating revenues increased 9.3% to
$247.1 million in fourth quarter 2012 and 5.5% to$950.1 million for the full year 2012. -
Net income increased 22.4% to
$54.5 million in fourth quarter 2012 and net income grew 6.2% to$184.2 million for full year 2012. -
Adjusted EBITDA (defined below) grew by 12.5% to
$116.6 million in fourth quarter 2012. For full year 2012, Adjusted EBITDA grew by 3.8% to$434.5 million . Fourth quarter 2012 Adjusted EBITDA margin increased to 47.2% from 45.8% and full year 2012 Adjusted EBITDA margin fell to 45.7% from 46.5%. -
Diluted EPS for fourth quarter 2012 rose 22.2% to
$0.44 and full year 2012 Diluted EPS increased 5.0% to$1.48 . -
Fourth quarter 2012 Adjusted EPS (defined below) rose 15.6% to
$0.52 . Full year 2012 Adjusted EPS rose 4.9% to$1.94 . -
MSCI entered into a$100 million accelerated share repurchase agreement inDecember 2012 and its Board of Directors authorized an additional$200 million repurchase program. -
MSCI's run rate grew by 9.7% to
$967.4 million in fourth quarter 2012, driven by organic subscription growth of 5.1%, organic asset-based fee growth of 6.2% and the acquisition of IPD.
"We are proud of what
"Strong cash flows enabled
"We enter 2013 with an enhanced platform of products that are better positioned than ever to compete in a market in which clients, financial markets and technology are constantly evolving. Our strong cash flows enable us to continue to invest in our business, repay our scheduled debt obligations, and return capital to shareholders," concluded Mr. Fernandez.
Table 1: |
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Three Months Ended | Change from | Year Ended | Change From | |||||||||||||||||||||||
Dollars in thousands, |
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except per share data | 2012 | 2011 | 2011 | 2012 | 2011 | 2011 | ||||||||||||||||||||
Operating revenues | $ | 247,080 | $ | 226,134 | 9.3% | $ | 950,141 | $ | 900,941 | 5.5% | ||||||||||||||||
Operating expenses | 151,773 | 144,501 | 5.0% | 603,205 | 578,943 | 4.2% | ||||||||||||||||||||
Net income | 54,452 | 44,486 | 22.4% | 184,238 | 173,454 | 6.2% | ||||||||||||||||||||
% Margin |
22.0% | 19.7% | 19.4% | 19.3% | ||||||||||||||||||||||
Diluted EPS | $ | 0.44 | $ | 0.36 | 22.2% | $ | 1.48 | $ | 1.41 | 5.0% | ||||||||||||||||
Adjusted EPS1 | $ | 0.52 | $ | 0.45 | 15.6% | $ | 1.94 | $ | 1.85 | 4.9% | ||||||||||||||||
Adjusted EBITDA2 | $ | 116,567 | $ | 103,648 | 12.5% | $ | 434,460 | $ | 418,740 | 3.8% | ||||||||||||||||
% Margin |
47.2% | 45.8% | 45.7% | 46.5% | ||||||||||||||||||||||
1 Per share net income before after-tax impact of amortization of intangibles, non-recurring stock-based compensation, restructuring costs, debt repayment and refinancing expenses and the lease exit charge. See Table 14 titled "Reconciliation of Adjusted Net Income and Adjusted EPS to Net Income and EPS (unaudited)" and information about the use of non-GAAP financial information provided under "Notes Regarding the Use of Non-GAAP Financial Measures." |
2 Net Income before income taxes, other net expense and income, depreciation, amortization, non-recurring stock-based compensation, restructuring costs, and the lease exit charge. See Table 13 titled "Reconciliation of Adjusted EBITDA to Net Income (unaudited)" and information about the use of non-GAAP financial information provided under "Notes Regarding the Use of Non-GAAP Financial Measures." |
Summary of Results for Fourth Quarter 2012 compared to Fourth Quarter 2011
Operating Revenues — See Table 4
Total operating revenues for the three months ended
Total fourth quarter 2012 subscription revenues rose
Performance and Risk segment revenues rose
-
Index and ESG products: Index and ESG products revenues
increased
$16.7 million , or 16.6%, to$117.4 million . Organic revenue growth was$13.1 million , or 13.0%. Subscription revenues grew by$9.6 million , or 13.8%, to$79.3 million , driven by growth in revenues of index benchmark products and, to a lesser extent, the acquisition of IPD.
Revenues attributable to equity index asset-based fees rose$7.1 million , or 22.8%, to$38.1 million , largely as a result of higher assets under management and higher fees from other passive funds. The average assets under management ("AUM") in ETFs linked toMSCI indices increased 23.5% to$376.6 billion from$305.0 billion in fourth quarter 2011. The average AUM of ETFs for which Vanguard has announced its intention to switch the underlying indices was$133.0 billion in fourth quarter 2012.
-
Risk management analytics: Revenues related to risk management
analytics products increased
$4.6 million , or 7.4%, to$66.7 million . The increase in risk management analytics revenues was driven by higher revenues from our BarraOne and HedgePlatform products. -
Portfolio management analytics: Revenues related to portfolio
management analytics products declined
$1.5 million , or 5.1%, to$28.6 million as a result of weak sales of equity analytics products and the continued migration of fixed income analytics systems to BarraOne. -
Energy and commodity analytics: Revenues from energy and
commodity analytics products were
$3.3 million , down$1.4 million , or 29.6%, from fourth quarter 2011. At the beginning of 2012, we corrected an error in our revenue recognition policy for our energy and commodity analytics products. The correction resulted in a smaller proportion of annual revenue being recognized in fourth quarter 2012 than in fourth quarter 2011.
Governance segment revenues rose
Operating Expenses — See Table 6
Total operating expenses rose
-
Compensation costs: Total compensation costs rose
$7.9 million , or 9.2%, to$93.8 million in fourth quarter 2012. Excluding non-recurring stock-based compensation expense, total compensation costs rose$8.7 million , or 10.2%, to$93.5 million . Compensation costs were impacted by an increase in overall compensation and benefits expense and by the addition of IPD. -
Non-compensation costs excluding the lease exit charge,
depreciation and amortization, and restructuring costs declined
$0.6 million , or 1.7%, to$37.1 million in fourth quarter 2012. The biggest drivers of the decline were lower information technology and recruiting expenses, which more than offset the addition of IPD's operating costs and the impact of higher professional fees and occupancy costs. -
Lease exit charge: Fourth quarter 2012 included a
$0.5 million charge associated with the exit of a lease resulting from the consolidation of ourNew York offices. -
Depreciation and amortization: Amortization of intangibles
expense totaled
$15.4 million compared to$16.3 million in fourth quarter 2011, a decline of 5.2%. Depreciation and amortization of property, plant and equipment rose$0.5 million , or 11.4%, to$5.0 million .
Other Expense (Income), Net
Other expense (income), net for fourth quarter 2012 was
Provision for Income Taxes
Income tax expense was
Net Income and Earnings per Share — See Table 14
Net income rose
Adjusted net income, which excludes the after-tax impact of the lease
exit charge, amortization of intangibles, non-recurring stock-based
compensation expense and restructuring costs, rose
See Table 14 titled "Reconciliation of Adjusted Net Income and Adjusted EPS to Net Income and EPS" and "Notes Regarding the Use of Non-GAAP Financial Measures" below.
Adjusted EBITDA — See Table 13
Adjusted EBITDA, which excludes income taxes, other net expense and
income, depreciation, amortization, non-recurring stock-based
compensation, restructuring costs and the lease exit charge, was
By segment, Adjusted EBITDA for the Performance and Risk segment
increased
See Table 13 titled "Reconciliation of Adjusted EBITDA to Net Income" and "Notes Regarding the Use of Non-GAAP Financial Measures" below.
Summary of Results for Full Year Ended
Operating Revenues — See Table 5
Total operating revenues for the full year ended
Index and ESG products, risk management analytics and governance
revenues grew 9.1%, 6.9% and 3.0%, respectively, in full year 2012.
Partially offsetting these increases, Portfolio management analytics
revenues declined 2.3% and energy and other commodity analytics revenues
fell 36.4%, primarily as a result of a
Operating Expenses — See Table 7
Total operating expenses increased
Non-compensation expenses costs excluding the lease exit charge,
depreciation and amortization, and restructuring costs were essentially
flat, up
Other Expense (Income), Net
Other expense (income), net for full year 2012 was
Provision for Income Taxes
The provision for income tax expense was
Net Income and Earnings per Share — See Table 14
Net income rose
Adjusted net income, which excludes the after-tax impact of the lease
exit charge, amortization of intangibles, non-recurring stock-based
compensation expense, and restructuring costs, rose
See Table 14 titled "Reconciliation of Adjusted Net Income and Adjusted EPS to Net Income and EPS" and "Notes Regarding the Use of Non-GAAP Financial Measures" below.
Adjusted EBITDA — See Table 13
Adjusted EBITDA, which excludes income taxes, other net expense and
income, depreciation, amortization, non-recurring stock-based
compensation, the lease exit charge and restructuring costs, was
Adjusted EBITDA for the Performance and Risk segment increased
See Table 13 titled "Reconciliation of Adjusted EBITDA to Net Income" and "Notes Regarding the Use of Non-GAAP Financial Measures" below.
Key Operating Metrics —
Total run rate grew by
Performance and Risk segment run rate grew by
-
Index and ESG products: Index and ESG subscription run rate
grew by
$68.2 million , or 25.3%, to$338.0 million . On an organic basis, run rate grew by$28.7 million , or 10.6%, driven by growth in equity index benchmark products and ESG products.
Run rate attributable to asset-based fees grew by$7.4 million , or 6.2%, to$127.1 million . The growth was driven by higher overall levels of AUM in ETFs linked toMSCI indices, partially offset by the decision by Vanguard to switch the indices for 22 of its ETFs ("Vanguard ETFs"). Excluding the impact of the Vanguard ETFs in fourth quarter 2011, asset-based fee run rate grew by$25.4 million , or 25.0%.
At the end of fourth quarter 2012, AUM in ETFs linked toMSCI indices were$402.3 billion , up$100.7 billion , or 33.4%, from the end of fourth quarter 2011 and up$38.6 billion , or 10.6%, from the end of third quarter 2012. Excluding the Vanguard ETFs, AUM inMSCI -linked ETFs was$263.8 billion , up$61.7 billion , or 30.5%, from the end of fourth quarter 2011 and up$31.3 billion , or 13.5%, from the end of third quarter 2012.
ETFs linked toMSCI indices attracted net inflows of$25.9 billion in fourth quarter 2012, including$3.9 billion in the Vanguard ETFs and$22.0 billion in other ETFs linked toMSCI indices. For full year 2012, total inflows toMSCI -linked ETFs were$56.6 billion , of which$23.5 billion were into the Vanguard ETFs and$33.1 billion into all other ETFs.
-
Risk management analytics: Run rate related to risk management
analytics products increased
$11.1 million , or 4.4%, to$262.1 million .MSCI continued to benefit from strong growth in run rate associated with its HedgePlatform hedge fund transparency products and from its BarraOne risk management and reporting system. -
Portfolio management analytics: Run rate related to portfolio
management analytics products declined
$8.5 million , or 7.2%, to$109.8 million . Run rate was negatively impacted by$3.0 million of product swaps (mostly to BarraOne), and by changes in foreign currency rates, which lowered run rate by$1.9 million . The impact of swaps and the foreign currency charges reduced fourth quarter 2012 run rate by$3.4 million relative to third quarter 2012. -
Energy and commodity analytics: Run rate associated from energy
and commodity analytics products declined to
$13.1 million , down$1.8 million , or 12.1%, from fourth quarter 2011.
Governance run rate grew by
Acquisition of IPD
On
Share Repurchase Authorization
On
In addition,
Acquisition of
On
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Forward-Looking Statements
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," or "continue", or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance, or achievements.
Other factors that could materially affect actual results, levels of
activity, performance or achievements can be found in
Notes Regarding the Use of Non-GAAP Financial Measures
Adjusted EBITDA is defined as net income before provision for income taxes, other net expense and income, depreciation and amortization, non-recurring stock-based compensation expense, the lease exit charge and restructuring costs.
Adjusted net income and Adjusted EPS are defined as net income and EPS, respectively, before provision for non-recurring stock-based compensation expenses, amortization of intangible assets, lease exit charge, restructuring costs and the accelerated amortization or write off of deferred financing and debt discount costs as a result of debt repayment (debt repayment and refinancing expenses), as well as for any related tax effects.
We believe that adjustments related to the lease exit charge, restructuring costs and debt repayment and refinancing expenses are useful to management and investors because it allows for an evaluation of MSCI's underlying operating performance. Additionally, we believe that adjusting for non-recurring stock-based compensation expenses, debt repayment and refinancing expenses and depreciation and amortization may help investors compare our performance to that of other companies in our industry as we do not believe that other companies in our industry have as significant a portion of their operating expenses represented by these items. We believe that the non-GAAP financial measures presented in this earnings release facilitate meaningful period-to-period comparisons and provide a baseline for the evaluation of future results.
Adjusted EBITDA, Adjusted net income and Adjusted EPS are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies.
Table 2: |
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Three Months Ended | Year Ended | |||||||||||||||||||
Dollars in thousands, |
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except per share data | 2012 | 2011 | 2012 | 2012 | 2011 | |||||||||||||||
Operating revenues | $ | 247,080 | $ | 226,134 | $ | 235,444 | $ | 950,141 | $ | 900,941 | ||||||||||
Operating expenses | ||||||||||||||||||||
Cost of services |
74,191 | 69,121 | 68,350 | 288,075 | 277,147 | |||||||||||||||
Selling, general and administrative |
57,172 | 54,509 | 62,973 | 233,183 | 212,972 | |||||||||||||||
Restructuring costs |
- | 125 | - | (51 | ) | 3,594 | ||||||||||||||
Amortization of intangible assets |
15,421 | 16,268 | 15,959 | 63,298 | 65,805 | |||||||||||||||
Depreciation and amortization of property, |
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equipment and leasehold improvements |
4,989 | 4,478 | 4,633 | 18,700 | 19,425 | |||||||||||||||
Total operating expenses | $ | 151,773 | $ | 144,501 | $ | 151,915 | $ | 603,205 | $ | 578,943 | ||||||||||
Operating income | $ | 95,307 | $ | 81,633 | $ | 83,529 | $ | 346,936 | $ | 321,998 | ||||||||||
Operating margin | 38.6 | % | 36.1 | % | 35.5 | % | 36.5 | % | 35.7 | % | ||||||||||
Interest income | (242 | ) | (335 | ) | (252 | ) | (954 | ) | (848 | ) | ||||||||||
Interest expense | 7,178 | 13,267 | 7,314 | 56,428 | 55,819 | |||||||||||||||
Other expense (income) | 56 | (1,427 | ) | 873 | 2,053 | 3,614 | ||||||||||||||
Other expenses (income), net | $ | 6,992 | $ | 11,505 | $ | 7,935 | $ | 57,527 | $ | 58,585 | ||||||||||
Income before taxes | 88,315 | 70,128 | 75,594 | 289,409 | 263,413 | |||||||||||||||
Provision for income taxes | 33,863 | 25,642 | 27,320 | 105,171 | 89,959 | |||||||||||||||
Net income | $ | 54,452 | $ | 44,486 | $ | 48,274 | $ | 184,238 | $ | 173,454 | ||||||||||
Net income margin | 22.0 | % | 19.7 | % | 20.5 | % | 19.4 | % | 19.3 | % | ||||||||||
Earnings per basic common share | $ | 0.44 | $ | 0.37 | $ | 0.39 | $ | 1.50 | $ | 1.43 | ||||||||||
Earnings per diluted common share | $ | 0.44 | $ | 0.36 | $ | 0.39 | $ | 1.48 | $ | 1.41 | ||||||||||
Weighted average shares outstanding used | ||||||||||||||||||||
in computing earnings per share | ||||||||||||||||||||
Basic | 122,082 | 121,146 | 122,261 | 122,023 | 120,717 | |||||||||||||||
Diluted | 122,995 | 122,536 | 123,450 | 123,204 | 122,276 | |||||||||||||||
Table 3: |
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As of | ||||||||||||||||||||
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Dollars in thousands | 2012 | 2012 | 2011 | |||||||||||||||||
Cash and cash equivalents | $ | 183,309 | $ | 340,458 | $ | 252,211 | ||||||||||||||
Short-term investments | 70,898 | 93,885 | 140,490 | |||||||||||||||||
Trade receivables, net of allowances | 153,557 | 124,309 | 180,566 | |||||||||||||||||
Deferred revenue | $ | 308,022 | $ | 323,503 | $ | 289,217 | ||||||||||||||
Current maturities of long-term debt | 43,093 | 43,082 | 10,339 | |||||||||||||||||
Long-term debt, net of current maturities | 811,623 | 822,401 | 1,066,548 | |||||||||||||||||
Table 4: Quarterly Operating Revenues by Product Category and Revenue Type (Unaudited) |
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Three Months Ended |
% Change from |
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Dollars in thousands | 2012 |
2011 |
2012 |
2011 |
2012 |
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Index and ESG products | |||||||||||||||||
Subscriptions |
$ | 79,268 | $ | 69,677 | $ | 73,894 | 13.8 | % | 7.3 | % | |||||||
Asset-based fees |
38,138 | 31,057 | 34,042 | 22.8 | % | 12.0 | % | ||||||||||
Index and ESG products total | 117,406 | 100,734 | 107,936 | 16.6 | % | 8.8 | % | ||||||||||
Risk management analytics | 66,654 | 62,037 | 64,998 | 7.4 | % | 2.5 | % | ||||||||||
Portfolio management analytics | 28,606 | 30,149 | 29,138 | (5.1 | %) | (1.8 | %) | ||||||||||
Energy and commodity analytics | 3,270 | 4,647 | 3,317 | (29.6 | %) | (1.4 | %) | ||||||||||
Total Performance and Risk revenues |
$ | 215,936 | $ | 197,567 | $ | 205,389 | 9.3 | % | 5.1 | % | |||||||
Total Governance revenues |
31,144 | 28,567 | 30,055 | 9.0 | % | 3.6 | % | ||||||||||
Total operating revenues | $ | 247,080 | $ | 226,134 | $ | 235,444 | 9.3 | % | 4.9 | % | |||||||
Recurring subscriptions |
$ | 202,001 | $ | 189,763 | $ | 197,591 | 6.4 | % | 2.2 | % | |||||||
Asset-based fees |
38,138 | 31,057 | 34,042 | 22.8 | % | 12.0 | % | ||||||||||
Non-recurring revenue |
6,941 | 5,314 | 3,811 | 30.6 | % | 82.1 | % | ||||||||||
Total operating revenues | $ | 247,080 | $ | 226,134 | $ | 235,444 | 9.3 | % | 4.9 | % | |||||||
Table 5: Full Year Operating Revenues by Product Category and Revenue Type (Unaudited) |
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Year Ended | % Change from | ||||||||||||||||
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Dollars in thousands | 2012 | 2011 | 2011 | ||||||||||||||
Index and ESG products | |||||||||||||||||
Subscriptions |
$ | 300,630 | $ | 264,390 | 13.7 | % | |||||||||||
Asset-based fees |
140,883 | 140,243 | 0.5 | % | |||||||||||||
Index and ESG products total | 441,513 | 404,633 | 9.1 | % | |||||||||||||
Risk management analytics | 260,276 | 243,570 | 6.9 | % | |||||||||||||
Portfolio management analytics | 116,133 | 118,889 | (2.3 | %) | |||||||||||||
Energy and commodity analytics | |||||||||||||||||
Recurring Energy and commodity analytics |
14,271 | 14,263 | 0.1 | % | |||||||||||||
Correction1 |
(5,203 | ) | - | n/m | |||||||||||||
Net energy and commodity analytics | 9,068 | 14,263 | (36.4 | %) | |||||||||||||
Total Performance and Risk revenues |
$ | 826,990 | $ | 781,355 | 5.8 | % | |||||||||||
Total Governance revenues |
123,151 | 119,586 | 3.0 | % | |||||||||||||
Total operating revenues | $ | 950,141 | $ | 900,941 | 5.5 | % | |||||||||||
Recurring subscriptions |
$ | 784,331 | $ | 732,473 | 7.1 | % | |||||||||||
Asset-based fees |
140,883 | 135,981 | 3.6 | % | |||||||||||||
Non-recurring revenue |
24,927 | 32,487 | (23.3 | %) | |||||||||||||
Total operating revenues | $ | 950,141 | $ | 900,941 | 5.5 | % | |||||||||||
1 In first quarter 2012, |
Table 6: Quarterly Operating Expense Detail (Unaudited) |
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Three Months Ended | % Change from | |||||||||||||||
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In thousands |
2012 | 2011 | 2012 | 2011 | 2012 | |||||||||||
Cost of services | ||||||||||||||||
Compensation |
$ | 55,982 | $ | 50,132 | $ | 50,111 | 11.7 | % | 11.7 | % | ||||||
Non-recurring stock based compensation |
255 | 443 | 267 | (42.4 | %) | (4.5 | %) | |||||||||
Total compensation |
$ | 56,237 | $ | 50,575 | $ | 50,378 | 11.2 | % | 11.6 | % | ||||||
Non-compensation |
17,735 | 18,546 | 16,448 | (4.4 | %) | 7.8 | % | |||||||||
Lease exit charge1 |
219 | - | 1,524 | n/m | (85.6 | %) | ||||||||||
Total non-compensation |
17,954 | 18,546 | 17,972 | (3.2 | %) | (0.1 | %) | |||||||||
Total cost of services | $ | 74,191 | $ | 69,121 | $ | 68,350 | 7.3 | % | 8.5 | % | ||||||
Selling, general and administrative | ||||||||||||||||
Compensation |
$ | 37,475 | $ | 34,672 | $ | 42,296 | 8.1 | % | (11.4 | %) | ||||||
Non-recurring stock based compensation |
126 | 701 | 359 | (82.0 | %) | (64.9 | %) | |||||||||
Total compensation |
$ | 37,601 | $ | 35,373 | $ | 42,655 | 6.3 | % | (11.8 | %) | ||||||
Non-compensation |
19,321 | 19,136 | 18,515 | 1.0 | % | 4.4 | % | |||||||||
Lease exit charge1 |
250 | - | 1,803 | n/m | (86.1 | %) | ||||||||||
Total non-compensation |
19,571 | 19,136 | 20,318 | 2.3 | % | (3.7 | %) | |||||||||
Total selling, general and administrative | $ | 57,172 | $ | 54,509 | $ | 62,973 | 4.9 | % | (9.2 | %) | ||||||
Restructuring costs | - | 125 | - | n/m | n/m | |||||||||||
Amortization of intangible assets | 15,421 | 16,268 | 15,959 | (5.2 | %) | (3.4 | %) | |||||||||
Depreciation and amortization of property, | ||||||||||||||||
equipment and leasehold improvements | 4,989 | 4,478 | 4,633 | 11.4 | % | 7.7 | % | |||||||||
Total operating expenses | $ | 151,773 | $ | 144,501 | $ | 151,915 | 5.0 | % | (0.1 | %) | ||||||
Compensation | $ | 93,457 | $ | 84,804 | $ | 92,407 | 10.2 | % | 1.1 | % | ||||||
Non-recurring stock-based compensation | 381 | 1,144 | 626 | (66.7 | %) | (39.1 | %) | |||||||||
Non-compensation expenses | 37,056 | 37,682 | 34,963 | (1.7 | %) | 6.0 | % | |||||||||
Lease exit charge1 | 469 | - | 3,327 | n/m | (85.9 | %) | ||||||||||
Restructuring costs | - | 125 | - | n/m | n/m | |||||||||||
Amortization of intangible assets | 15,421 | 16,268 | 15,959 | (5.2 | %) | (3.4 | %) | |||||||||
Depreciation and amortization of property, | ||||||||||||||||
equipment and leasehold improvements | 4,989 | 4,478 | 4,633 | 11.4 | % | 7.7 | % | |||||||||
Total operation expenses | $ | 151,773 | $ | 144,501 | $ | 151,915 | 5.0 | % | (0.1 | %) | ||||||
1The third quarter and fourth quarter 2012 included
charges of |
Table 7: Full Year Operating Expense Detail (Unaudited) |
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Year Ended | % Change from | ||||||||||||||||
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In thousands |
2012 | 2011 | 2011 | ||||||||||||||
Cost of services | |||||||||||||||||
Compensation |
$ | 215,134 | $ | 199,447 | 7.9 | % | |||||||||||
Non-recurring stock based compensation |
884 | 3,150 | (71.9 | %) | |||||||||||||
Total compensation |
$ | 216,018 | $ | 202,597 | 6.6 | % | |||||||||||
Non-compensation |
70,314 | 74,550 | (5.7 | %) | |||||||||||||
Lease exit charge1 |
1,743 | - | n/m | ||||||||||||||
Total non-compensation |
72,057 | 74,550 | (3.3 | %) | |||||||||||||
Total cost of services | $ | 288,075 | $ | 277,147 | 3.9 | % | |||||||||||
Selling, general and administrative | |||||||||||||||||
Compensation |
$ | 156,288 | $ | 138,722 | 12.7 | % | |||||||||||
Non-recurring stock based compensation |
897 | 4,768 | (81.2 | %) | |||||||||||||
Total compensation |
$ | 157,185 | $ | 143,490 | 9.5 | % | |||||||||||
Non-compensation |
73,945 | 69,482 | 6.4 | % | |||||||||||||
Lease exit charge1 |
2,053 | - | n/m | ||||||||||||||
Total non-compensation |
75,998 | 69,482 | 9.4 | % | |||||||||||||
Total selling, general and administrative | $ | 233,183 | $ | 212,972 | 9.5 | % | |||||||||||
Restructuring costs | (51 | ) | 3,594 | (101.4 | %) | ||||||||||||
Amortization of intangible assets | 63,298 | 65,805 | (3.8 | %) | |||||||||||||
Depreciation and amortization of property, | |||||||||||||||||
equipment and leasehold improvements | 18,700 | 19,425 | (3.7 | %) | |||||||||||||
Total operating expenses | $ | 603,205 | $ | 578,943 | 4.2 | % | |||||||||||
Compensation | $ | 371,422 | $ | 338,169 | 9.8 | % | |||||||||||
Non-recurring stock-based compensation | 1,781 | 7,918 | (77.5 | %) | |||||||||||||
Non-compensation expenses | 144,259 | 144,032 | 0.2 | % | |||||||||||||
Lease exit charge1 | 3,796 | - | n/m | ||||||||||||||
Restructuring costs | (51 | ) | 3,594 | (101.4 | %) | ||||||||||||
Amortization of intangible assets | 63,298 | 65,805 | (3.8 | %) | |||||||||||||
Depreciation and amortization of property, | |||||||||||||||||
equipment and leasehold improvements | 18,700 | 19,425 | (3.7 | %) | |||||||||||||
Total operation expenses | $ | 603,205 | $ | 578,943 | 4.2 | % | |||||||||||
1Full year 2012 included charges of |
Table 8: Summary Quarterly Segment Information (Unaudited) |
|||||||||||||||||||||||||
Three Months Ended | % Change from | ||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
Dollars in thousands | 2012 | 2011 | 2012 | 2011 | 2012 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Performance and Risk | $ | 215,936 | $ | 197,567 | $ | 205,389 | 9.3 | % | 5.1 | % | |||||||||||||||
Governance | 31,144 | 28,567 | 30,055 | 9.0 | % | 3.6 | % | ||||||||||||||||||
Total Operating revenues |
$ | 247,080 | $ | 226,134 | $ | 235,444 | 9.3 | % | 4.9 | % | |||||||||||||||
Operating Income: | |||||||||||||||||||||||||
Performance and Risk | 90,620 | 79,046 | 80,472 | 14.6 | % | 12.6 | % | ||||||||||||||||||
Margin |
42.0 | % | 40.0 | % | 39.2 | % | |||||||||||||||||||
Governance | 4,687 | 2,587 | 3,057 | 81.2 | % | 53.3 | % | ||||||||||||||||||
Margin |
15.0 | % | 9.1 | % | 10.2 | % | |||||||||||||||||||
Total Operating Income |
$ | 95,307 | $ | 81,633 | $ | 83,529 | 16.8 | % | 14.1 | % | |||||||||||||||
Margin |
38.6 | % | 36.1 | % | 35.5 | % | |||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||||
Performance and Risk | 107,502 | 96,964 | 100,362 | 10.9 | % | 7.1 | % | ||||||||||||||||||
Margin |
49.8 | % | 49.1 | % | 48.9 | % | |||||||||||||||||||
Governance | 9,065 | 6,684 | 7,712 | 35.6 | % | 17.5 | % | ||||||||||||||||||
Margin |
29.1 | % | 23.4 | % | 25.7 | % | |||||||||||||||||||
Total Adjusted EBITDA |
$ | 116,567 | $ | 103,648 | $ | 108,074 | 12.5 | % | 7.9 | % | |||||||||||||||
Margin |
47.2 | % | 45.8 | % | 45.9 | % | |||||||||||||||||||
Table 9: Summary Full Year Segment Information (unaudited) |
|||||||||||||||||||||||||
Year Ended | % Change from | ||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
Dollars in thousands | 2012 | 2011 | 2011 | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Performance and Risk | $ | 826,990 | $ | 781,355 | 5.8 | % | |||||||||||||||||||
Governance | 123,151 | 119,586 | 3.0 | % | |||||||||||||||||||||
Total Operating revenues |
$ | 950,141 | $ | 900,941 | 5.5 | % | |||||||||||||||||||
Operating Income: | |||||||||||||||||||||||||
Performance and Risk | 334,547 | 310,504 | 7.7 | % | |||||||||||||||||||||
Margin |
40.5 | % | 39.7 | % | |||||||||||||||||||||
Governance | 12,389 | 11,494 | 7.8 | % | |||||||||||||||||||||
Margin |
10.1 | % | 9.6 | % | |||||||||||||||||||||
Total Operating Income |
$ | 346,936 | $ | 321,998 | 7.7 | % | |||||||||||||||||||
Margin |
36.5 | % | 35.7 | % | |||||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||||
Performance and Risk | 404,644 | 387,459 | 4.4 | % | |||||||||||||||||||||
Margin |
48.9 | % | 49.6 | % | |||||||||||||||||||||
Governance | 29,816 | 31,281 | (4.7 | %) | |||||||||||||||||||||
Margin |
24.2 | % | 26.2 | % | |||||||||||||||||||||
Total Adjusted EBITDA |
$ | 434,460 | $ | 418,740 | 3.8 | % | |||||||||||||||||||
Margin |
45.7 | % | 46.5 | % | |||||||||||||||||||||
|
|||||||||||||||||||||||||||||
Table 10: Key Operating Metrics1 (unaudited) |
|||||||||||||||||||||||||||||
As of | % Change from | ||||||||||||||||||||||||||||
Dollars in thousands, | December | December | September | December | September | ||||||||||||||||||||||||
except employee count | 2012 | 2011 | 2012 | 2011 | 2012 | ||||||||||||||||||||||||
Run Rates1 | |||||||||||||||||||||||||||||
Index and ESG products | |||||||||||||||||||||||||||||
Subscription2 |
$ | 338,006 | $ | 269,780 | $ | 292,787 | 25.3 | % | 15.4 | % | |||||||||||||||||||
Asset-based fees3 |
127,072 | 119,706 | 114,576 | 6.2 | % | 10.9 | % | ||||||||||||||||||||||
Index and ESG products total | 465,078 | 389,486 | 407,363 | 19.4 | % | 14.2 | % | ||||||||||||||||||||||
Risk management analytics | 262,108 | 250,967 | 261,776 | 4.4 | % | 0.1 | % | ||||||||||||||||||||||
Portfolio management analytics | 109,836 | 118,354 | 115,958 | (7.2 | %) | (5.3 | %) | ||||||||||||||||||||||
Energy and commodity analytics | 13,128 | 14,928 | 14,040 | (12.1 | %) | (6.5 | %) | ||||||||||||||||||||||
Total Performance and Risk |
850,150 | 773,735 | 799,137 | 9.9 | % | 6.4 | % | ||||||||||||||||||||||
Governance |
117,261 | 108,251 | 115,840 | 8.3 | % | 1.2 | % | ||||||||||||||||||||||
Total Run Rate | $ | 967,411 | $ | 881,986 | $ | 914,977 | 9.7 | % | 5.7 | % | |||||||||||||||||||
Subscription total2 | $ | 840,339 | $ | 762,280 | $ | 800,401 | 10.2 | % | 5.0 | % | |||||||||||||||||||
Asset-based fees total3 | 127,072 | 119,706 | 114,576 | 6.2 | % | 10.9 | % | ||||||||||||||||||||||
Total Run Rate | $ | 967,411 | $ | 881,986 | $ | 914,977 | 9.7 | % | 5.7 | % | |||||||||||||||||||
New Recurring Subscription Sales | $ | 29,742 | $ | 35,444 | $ | 27,164 | (16.1 | %) | 9.5 | % | |||||||||||||||||||
Subscription Cancellations | (28,725 | ) | (27,245 | ) | (19,134 | ) | 5.4 | % | 50.1 | % | |||||||||||||||||||
Net New Recurring Subscription Sales |
$ | 1,017 | $ | 8,199 | $ | 8,030 | (87.6 | %) | (87.3 | %) | |||||||||||||||||||
Non-recurring sales | $ | 7,443 | $ | 7,460 | $ | 3,878 | (0.2 | %) | 91.9 | % | |||||||||||||||||||
Employees | 2,759 | 2,429 | 2,416 | 13.6 | % | 14.2 | % | ||||||||||||||||||||||
% Employees by location | |||||||||||||||||||||||||||||
Developed Market Centers | 59 | % | 61 | % | 56 | % | |||||||||||||||||||||||
Emerging Market Centers | 41 | % | 39 | % | 44 | % | |||||||||||||||||||||||
1 The run rate at a particular point in time represents
the forward-looking revenues for the next twelve months from all
subscriptions and investment product licenses we currently provide
to our clients under renewable contracts assuming all contracts that
come up for renewal are renewed and assuming then-current exchange
rates. For any subscription or license whose fees are linked to an
investment product's assets or trading volume, the run rate
calculation reflects an annualization of the most recent periodic
revenue earned under such license or subscription. The run rate does
not include revenues associated with "one-time" and other
non-recurring transactions. In addition, we remove from the run rate
the revenues associated with any subscription or investment product
license agreement with respect to which we have received a notice of
termination or non-renewal during the period and we have determined
that such notice evidences the client's final decision to terminate
or not renew the applicable subscription or agreement, even though
the notice is not effective until a later date (see footnote 2 for
discussion of |
2 Includes |
3 The asset-based fee run rate as of |
Table 11: ETF Assets Linked to MSCI Indices1 (unaudited) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended 2011 | Three Months Ended 2012 | Ended December | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars in billions | March | June | September | December | March | June | September | December | 2011 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||
Beginning Period AUM in ETFs linked |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
to MSCI Indices |
$ | 333.3 | $ | 350.1 | $ | 360.5 | $ | 290.1 | $ | 301.6 | $ | 354.7 | $ | 327.4 | $ | 363.7 | $ | 333.3 | $ | 301.6 | |||||||||||||||||||||||||||||||||||
Cash Inflow/ Outflow | 6.7 | 14.2 | (0.0 | ) | 1.0 | 15.2 | 0.3 | 15.2 | 25.9 | 21.9 | 56.6 | ||||||||||||||||||||||||||||||||||||||||||||
Appreciation/Depreciation | 10.1 | (3.8 | ) | (70.4 | ) | 10.5 | 37.9 | (27.6 | ) | 21.1 | 12.7 | (53.6 | ) | 44.1 | |||||||||||||||||||||||||||||||||||||||||
Period End AUM in ETFs linked to |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
MSCI Indices |
$ | 350.1 | $ | 360.5 | $ | 290.1 | $ | 301.6 | $ | 354.7 | $ | 327.4 | $ | 363.7 | $ | 402.3 | $ | 301.6 | $ | 402.3 | |||||||||||||||||||||||||||||||||||
Period Average AUM in ETFs linked to |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
MSCI Indices 2 |
$ | 337.6 | $ | 356.8 | $ | 329.1 | $ | 305.0 | $ | 341.0 | $ | 331.6 | $ | 344.7 | $ | 376.6 | $ | 333.5 | $ | 349.1 | |||||||||||||||||||||||||||||||||||
1 ETF assets under management calculation methodology is
ETF net asset value multiplied by shares outstanding. Source:
|
2 September 2012 and |
Table 12: Supplemental Operating Metrics (unaudited) |
||||||||||||||||||||||||||||||||||||||||
Recurring Subscription Sales & Subscription Cancellations | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended 2011 | Three Months Ended 2012 | Year Ended December | ||||||||||||||||||||||||||||||||||||||
Dollars in thousands | March | June | September | December | March | June | September | December | 2011 | 2012 | ||||||||||||||||||||||||||||||
New Recurring Subscription Sales | $ | 34,612 | $ | 30,298 | $ | 31,661 | $ | 35,444 | $ | 33,506 | $ | 28,453 | $ | 27,164 | $ | 29,742 | $ | 132,015 | $ | 118,865 | ||||||||||||||||||||
Subscription Cancellations | (14,402 | ) | (14,965 | ) | (15,364 | ) | (27,245 | ) | (13,498 | ) | (17,229 | ) | (19,134 | ) | (28,725 | ) | (71,976 | ) | (78,586 | ) | ||||||||||||||||||||
Net New Recurring Subscription Sales | $ | 20,210 | $ | 15,333 | $ | 16,297 | $ | 8,199 | $ | 20,008 | $ | 11,224 | $ | 8,030 | $ | 1,017 | $ | 60,039 | $ | 40,279 | ||||||||||||||||||||
Non-recurring sales | 13,647 | 8,415 | 6,560 | 7,460 | 9,338 | 5,099 | 3,878 | 7,443 | 36,082 | 25,758 | ||||||||||||||||||||||||||||||
Total Sales | $ | 48,259 | $ | 38,713 | $ | 38,221 | $ | 42,904 | $ | 42,844 | $ | 33,552 | $ | 31,042 | $ | 37,185 | $ | 168,097 | $ | 144,623 | ||||||||||||||||||||
Aggregate & Core Retention Rates | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended 2011 | Three Months Ended 2012 | Year Ended December | ||||||||||||||||||||||||||||||||||||||
March | June | September | December | March | June | September | December | 2011 | 2012 | |||||||||||||||||||||||||||||||
Aggregate Retention Rate 1 | ||||||||||||||||||||||||||||||||||||||||
Index and ESG products |
95.0 | % | 92.8 | % | 95.2 | % | 89.3 | % | 94.5 | % | 94.9 | % | 94.0 | % | 90.4 | % | 93.1 | % | 93.4 | % | ||||||||||||||||||||
Risk management analytics |
94.2 | % | 92.2 | % | 92.1 | % | 80.8 | % | 93.9 | % | 90.0 | % | 88.5 | % | 84.4 | % | 89.5 | % | 89.0 | % | ||||||||||||||||||||
Portfolio management analytics |
88.6 | % | 91.4 | % | 86.6 | % | 87.2 | % | 91.9 | % | 84.2 | % | 84.9 | % | 78.0 | % | 88.4 | % | 84.7 | % | ||||||||||||||||||||
Energy & commodity analytics |
76.9 | % | 88.8 | % | 89.3 | % | 75.0 | % | 90.2 | % | 85.5 | % | 76.6 | % | 60.4 | % | 82.5 | % | 78.1 | % | ||||||||||||||||||||
Total Performance and Risk | 93.0 | % | 92.2 | % | 92.2 | % | 85.2 | % | 93.7 | % | 90.9 | % | 89.8 | % | 85.2 | % | 90.5 | % | 89.8 | % | ||||||||||||||||||||
Total Governance | 85.0 | % | 90.4 | % | 86.2 | % | 80.6 | % | 88.7 | % | 92.1 | % | 91.1 | % | 83.6 | % | 85.6 | % | 88.9 | % | ||||||||||||||||||||
Total Aggregate Retention Rate |
91.8 | % | 91.9 | % | 91.3 | % | 84.5 | % | 93.0 | % | 91.0 | % | 90.0 | % | 84.9 | % | 89.8 | % | 89.7 | % | ||||||||||||||||||||
Core Retention Rate 1 | ||||||||||||||||||||||||||||||||||||||||
Index and ESG products |
95.2 | % | 92.8 | % | 95.2 | % | 89.3 | % | 94.6 | % | 95.0 | % | 94.0 | % | 90.5 | % | 93.1 | % | 93.5 | % | ||||||||||||||||||||
Risk management analytics |
94.2 | % | 92.7 | % | 92.1 | % | 81.0 | % | 94.0 | % | 92.0 | % | 89.3 | % | 84.4 | % | 90.0 | % | 89.8 | % | ||||||||||||||||||||
Portfolio management analytics |
89.9 | % | 93.2 | % | 88.3 | % | 88.3 | % | 92.2 | % | 87.0 | % | 86.5 | % | 83.6 | % | 89.9 | % | 87.3 | % | ||||||||||||||||||||
Energy & commodity analytics |
76.9 | % | 88.8 | % | 91.3 | % | 75.0 | % | 90.7 | % | 85.5 | % | 77.1 | % | 60.4 | % | 83.0 | % | 78.4 | % | ||||||||||||||||||||
Total Performance and Risk | 93.4 | % | 92.7 | % | 92.6 | % | 85.5 | % | 93.8 | % | 92.2 | % | 90.5 | % | 86.2 | % | 91.0 | % | 90.6 | % | ||||||||||||||||||||
Total Governance | 85.0 | % | 90.4 | % | 86.3 | % | 80.6 | % | 88.7 | % | 92.2 | % | 91.2 | % | 83.8 | % | 85.6 | % | 89.0 | % | ||||||||||||||||||||
Total Core Retention Rate |
92.1 | % | 92.4 | % | 91.6 | % | 84.8 | % | 93.1 | % | 92.2 | % | 90.6 | % | 85.9 | % | 90.2 | % | 90.4 | % | ||||||||||||||||||||
1The quarterly Aggregate Retention Rates are calculated by annualizing the cancellations for which we have received a notice of termination or non-renewal during the quarter and we have determined that such notice evidences the client's final decision to terminate or not renew the applicable subscription or agreement, even though such notice is not effective until a later date. This annualized cancellation figure is then divided by the subscription Run Rate at the beginning of the year to calculate a cancellation rate. This cancellation rate is then subtracted from 100% to derive the annualized Retention Rate for the quarter. The Aggregate Retention Rate is computed on a product-by-product basis. Therefore, if a client reduces the number of products to which it subscribes or switches between our products, we treat it as a cancellation. In addition, we treat any reduction in fees resulting from renegotiated contracts as a cancellation in the calculation to the extent of the reduction. For the calculation of the Core Retention Rate the same methodology is used except the amount of cancellations in the quarter is reduced by the amount of product swaps. |
Table 13: Reconciliation of Adjusted EBITDA to Net Income (unaudited) |
||||||||||||||||||||||||||
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||||||
|
Performance |
|
|
Performance |
|
|
||||||||||||||||||||
In thousands |
and Risk |
Governance |
Total |
and Risk |
Governance |
Total |
||||||||||||||||||||
Net Income | $ | 54,452 | $ | 44,486 | ||||||||||||||||||||||
Plus: | Provision for income taxes | 33,863 | 25,642 | |||||||||||||||||||||||
Plus: | Other expense (income), net | 6,992 | 11,505 | |||||||||||||||||||||||
Operating income | $ | 90,620 | $ | 4,687 | $ | 95,307 | $ | 79,046 | $ | 2,587 | $ | 81,633 | ||||||||||||||
Plus: | Non-recurring stock-based compensation | 342 | 39 | 381 | 1,015 | 129 | 1,144 | |||||||||||||||||||
Plus: | Depreciation and amortization of property, | |||||||||||||||||||||||||
equipment and leasehold improvements | 4,028 | 961 | 4,989 | 3,595 | 883 | 4,478 | ||||||||||||||||||||
Plus: | Amortization of intangible assets | 12,101 | 3,320 | 15,421 | 12,927 | 3,341 | 16,268 | |||||||||||||||||||
Plus: | Lease exit charge | 411 | 58 | 469 | - | - | - | |||||||||||||||||||
Plus: | Restructuring costs | - | - | - | 381 | (256 | ) | 125 | ||||||||||||||||||
Adjusted EBITDA | $ | 107,502 | $ | 9,065 | $ | 116,567 | $ | 96,964 | $ | 6,684 | $ | 103,648 | ||||||||||||||
Year Ended |
Year Ended |
|||||||||||||||||||||||||
Performance | Performance | |||||||||||||||||||||||||
In thousands | and Risk | Governance | Total | and Risk | Governance | Total | ||||||||||||||||||||
Net Income | $ | 184,238 | $ | 173,454 | ||||||||||||||||||||||
Plus: | Provision for income taxes | 105,171 | 89,959 | |||||||||||||||||||||||
Plus: | Other expense (income), net | 57,527 | 58,585 | |||||||||||||||||||||||
Operating income | $ | 334,547 | $ | 12,389 | $ | 346,936 | $ | 310,504 | $ | 11,494 | $ | 321,998 | ||||||||||||||
Plus: | Non-recurring stock-based compensation | 1,611 | 170 | 1,781 | 7,446 | 472 | 7,918 | |||||||||||||||||||
Plus: | Depreciation and amortization of property, | |||||||||||||||||||||||||
equipment and leasehold improvements | 15,165 | 3,535 | 18,700 | 15,144 | 4,281 | 19,425 | ||||||||||||||||||||
Plus: | Amortization of intangible assets | 50,017 | 13,281 | 63,298 | 52,414 | 13,391 | 65,805 | |||||||||||||||||||
Plus: | Lease exit charge | 3,336 | 460 | 3,796 | - | - | - | |||||||||||||||||||
Plus: | Restructuring costs | (32 | ) | (19 | ) | (51 | ) | 1,951 | 1,643 | 3,594 | ||||||||||||||||
Adjusted EBITDA | $ | 404,644 | $ | 29,816 | $ | 434,460 | $ | 387,459 | $ | 31,281 | $ | 418,740 | ||||||||||||||
Table 14: Reconciliation of Adjusted Net Income and Adjusted EPS to Net Income and EPS (unaudited) |
||||||||||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||
In thousands |
2012 | 2011 | 2012 | 2012 | 2011 | |||||||||||||||||||
Net Income | $ | 54,452 | $ | 44,486 | $ | 48,274 | $ | 184,238 | $ | 173,454 | ||||||||||||||
Plus: | Non-recurring stock-based compensation | 381 | 1,144 | 626 | 1,781 | 7,918 | ||||||||||||||||||
Plus: | Amortization of intangible assets | 15,421 | 16,268 | 15,959 | 63,298 | 65,805 | ||||||||||||||||||
Plus: | Debt repayment and refinancing expenses | - | - | - | 20,639 | 6,404 | ||||||||||||||||||
Plus: | Lease exit charge | 469 | - | 3,327 | 3,796 | - | ||||||||||||||||||
Plus: | Restructuring costs | - | 126 | - | (51 | ) | 3,594 | |||||||||||||||||
Less: | Income tax effect | (6,556 | ) | (6,463 | ) | (7,280 | ) | (32,510 | ) | (29,913 | ) | |||||||||||||
Adjusted net income | $ | 64,167 | $ | 55,561 | $ | 60,906 | $ | 241,191 | $ | 227,262 | ||||||||||||||
Diluted EPS | $ | 0.44 | $ | 0.36 | $ | 0.39 | $ | 1.48 | $ | 1.41 | ||||||||||||||
Plus: | Non-recurring stock-based compensation | $ | - | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.06 | |||||||||||||
Plus: | Amortization of intangible assets | $ | 0.12 | $ | 0.13 | $ | 0.13 | $ | 0.51 | $ | 0.54 | |||||||||||||
Plus: | Debt repayment and refinancing expenses | $ | - | $ | - | $ | - | $ | 0.17 | $ | 0.05 | |||||||||||||
Plus: | Lease exit charge | $ | - | $ | - | $ | 0.03 | $ | 0.03 | $ | - | |||||||||||||
Plus: | Restructuring costs | $ | - | $ | - | $ | - | $ | (0.00 | ) | $ | 0.03 | ||||||||||||
Less: | Income tax effect | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.26 | ) | $ | (0.24 | ) | ||||||||
Adjusted EPS | $ | 0.52 | $ | 0.45 | $ | 0.49 | $ | 1.94 | $ | 1.85 | ||||||||||||||
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