Delaware
|
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001-33812
|
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13-4038723
|
(State or other jurisdiction
of incorporation)
|
|
(Commission File Number)
|
|
(IRS Employer
Identification No.)
|
88 Pine Street, New York, NY 10005
|
|
10005
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(Address of principal executive offices)
|
|
(Zip Code)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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(d)
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Exhibits.
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Exhibit No.
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Description
|
||
Exhibit 99.1
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Press release of the Registrant dated January 13, 2011 containing financial information for the fiscal year and fourth quarter ended November 30, 2010.
|
|
MSCI Inc.
|
|||
Date: January 13, 2011
|
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By:
|
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/s/ Henry A. Fernandez
|
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Name:
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Henry A. Fernandez
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Title:
|
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Chief Executive Officer, President and Chairman
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www.msci.com
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·
|
Operating revenues increased 79.6% to $213.3 million in fourth quarter 2010 and 49.7% to $662.9 million for fiscal year 2010.
|
·
|
Compared to pro forma 2009, revenues grew by 9.2% to $213.3 million in fourth quarter 2010. Pro forma fiscal year 2010 revenues rose 9.4% to $816.4 million.
|
·
|
Net income increased by 23.4% to $30.3 million in fourth quarter 2010. For fiscal year 2010, net income increased by 12.7% to $92.2 million. Diluted EPS for fourth quarter 2010 rose 4.2% to $0.25. For fiscal year 2010, Diluted EPS rose 1.3% to $0.81.
|
·
|
Adjusted EBITDA (defined below) grew by 66.7% to $98.9 million with an Adjusted EBITDA margin of 46.4% for fourth quarter 2010 and for fiscal year 2010 grew by 43.0% to $307.6 million with a margin of 46.4%.
|
·
|
Compared to pro forma fourth quarter 2009, Adjusted EBITDA grew by 16.9% to $98.9 million and the Adjusted EBITDA margin expanded to 46.4% from 43.3%. Pro forma fiscal year 2010 Adjusted EBITDA rose 14.1% to $356.6 million and the Adjusted EBITDA margin expanded to 43.7% from 41.9%.
|
·
|
Fourth quarter 2010 Adjusted EPS (defined below) rose 16.1% to $0.36 and 20.5% to $1.35 for fiscal year 2010.
|
|
www.msci.com
|
Three Months Ended
|
Change from
|
Fiscal Year Ended
|
Change from
|
|||||||||||||||||||||
November 30,
|
November 30,
|
November 30,
|
November 30,
|
|||||||||||||||||||||
In thousands, except per share data
|
2010
|
2009
|
2009
|
2010
|
2009
|
2009
|
||||||||||||||||||
Operating revenues
|
$ | 213,318 | $ | 118,790 | 79.6 | % | $ | 662,901 | $ | 442,948 | 49.7 | % | ||||||||||||
Operating expenses
|
142,598 | 75,034 | 90.0 | % | 456,778 | 291,956 | 56.5 | % | ||||||||||||||||
Net income
|
30,266 | 24,535 | 23.4 | % | 92,170 | 81,801 | 12.7 | % | ||||||||||||||||
% Margin
|
14.2 | % | 20.7 | % | 13.9 | % | 18.5 | % | ||||||||||||||||
Diluted EPS
|
$ | 0.25 | $ | 0.24 | 4.2 | % | $ | 0.81 | $ | 0.80 | 1.3 | % | ||||||||||||
Adjusted EPS1
|
0.36 | 0.31 | 16.1 | % | 1.35 | 1.12 | 20.5 | % | ||||||||||||||||
Adjusted EBITDA2
|
$ | 98,914 | $ | 59,343 | 66.7 | % | $ | 307,603 | $ | 215,155 | 43.0 | % | ||||||||||||
% Margin
|
46.4 | % | 50.0 | % | 46.4 | % | 48.6 | % |
1 Per share net income before after-tax impact of amortization of intangibles, non-recurring stock-based compensation, third party transaction expenses associated with the acquisition of RiskMetrics and debt repayment expenses. See Table 17 titled "Reconciliation of Adjusted Net Income and Adjusted EPS to Net Income and EPS" 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 interest income, interest expense, other expense (income), provision for income taxes, depreciation, amortization, non-recurring stock-based compensation, and third party transaction expenses associated with the acquisition of RiskMetrics. See Table 15 titled "Reconciliation of Adjusted EBITDA to Net Income" and information about the use of non-GAAP financial information provided under "Notes Regarding the Use of Non-GAAP Financial Measures.”
|
|
www.msci.com
|
|
www.msci.com
|
|
www.msci.com
|
|
www.msci.com
|
|
www.msci.com
|
|
www.msci.com
|
|
www.msci.com
|
Edings Thibault, MSCI, New York
|
+ 1.866.447.7874
|
For media inquiries please contact:
|
|
Kenny Suarez | Patrick Clifford, Abernathy MacGregor, New York
|
+ 1.212.371.5999
|
Sally Todd | Kristy Fitzpatrick, MHP Communications, London
|
+ 44.20.3128.8100
|
|
www.msci.com
|
|
www.msci.com
|
Three Months Ended
|
Fiscal Year Ended
|
|||||||||||||||||||
November 30,
|
August 31,
|
November 30,
|
||||||||||||||||||
In thousands, except per share data
|
2010
|
2009
|
2010
|
2010
|
2009
|
|||||||||||||||
Operating revenues
|
$ | 213,318 | $ | 118,790 | $ | 202,733 | $ | 662,901 | $ | 442,948 | ||||||||||
Operating expenses
|
||||||||||||||||||||
Cost of services
|
69,131 | 32,214 | 69,741 | 198,626 | 118,665 | |||||||||||||||
Selling, general and administrative
|
49,300 | 33,487 | 63,306 | 190,244 | 135,780 | |||||||||||||||
Restructuring costs
|
1,943 | - | 6,953 | 8,896 | - | |||||||||||||||
Amortization of intangible assets
|
16,694 | 6,268 | 16,350 | 41,599 | 25,554 | |||||||||||||||
Depreciation and amortization of property, equipment, and leasehold improvements
|
5,530 | 3,065 | 4,934 | 17,413 | 11,957 | |||||||||||||||
Total operating expenses
|
$ | 142,598 | $ | 75,034 | $ | 161,284 | $ | 456,778 | $ | 291,956 | ||||||||||
Operating income
|
70,720 | 43,756 | 41,449 | 206,123 | 150,992 | |||||||||||||||
Interest income
|
(128 | ) | (339 | ) | (114 | ) | (993 | ) | (1,053 | ) | ||||||||||
Interest expense
|
17,495 | 4,513 | 20,415 | 51,337 | 19,683 | |||||||||||||||
Other expense (income)
|
2,274 | (71 | ) | 524 | 2,288 | 641 | ||||||||||||||
Other expense, net
|
$ | 19,641 | $ | 4,103 | $ | 20,825 | $ | 52,632 | $ | 19,271 | ||||||||||
Income before income taxes
|
51,079 | 39,653 | 20,624 | 153,491 | 131,721 | |||||||||||||||
Provision for income taxes
|
20,813 | 15,118 | 10,305 | 61,321 | 49,920 | |||||||||||||||
Net income
|
$ | 30,266 | $ | 24,535 | $ | 10,319 | $ | 92,170 | $ | 81,801 | ||||||||||
Earnings per basic common share
|
$ | 0.25 | $ | 0.24 | $ | 0.09 | $ | 0.82 | $ | 0.80 | ||||||||||
Earnings per diluted common share
|
$ | 0.25 | $ | 0.24 | $ | 0.08 | $ | 0.81 | $ | 0.80 | ||||||||||
Weighted average shares outstanding used in computing earnings per share
|
||||||||||||||||||||
Basic
|
119,309 | 101,383 | 118,339 | 112,074 | 100,607 | |||||||||||||||
Diluted
|
121,172 | 101,952 | 120,341 | 113,357 | 100,860 | |||||||||||||||
As of
|
||||||||
November 30,
|
November 30,
|
|||||||
In thousands
|
2010
|
2009
|
||||||
Cash and cash equivalents
|
$ | 226,575 | $ | 176,024 | ||||
Short-term investments
|
73,891 | 295,304 | ||||||
Trade receivables, net of allowances
|
147,662 | 77,180 | ||||||
Deferred revenue
|
$ | 271,300 | $ | 152,944 | ||||
Current maturities of long-term debt
|
54,916 | 42,088 | ||||||
Long-term debt, net of current maturities
|
1,207,881 | 337,622 |
|
www.msci.com
|
Three Months Ended
|
Change from
|
|||||||||||||||||||
November 30,
|
August 31,
|
November 30,
|
August 31,
|
|||||||||||||||||
In thousands
|
2010
|
2009
|
2010
|
2009
|
2010
|
|||||||||||||||
Index and ESG products
|
||||||||||||||||||||
Subscriptions
|
$ | 61,143 | $ | 48,454 | $ | 58,984 | 26.2 | % | 3.7 | % | ||||||||||
Asset-based fees
|
30,045 | 22,874 | 25,134 | 31.4 | % | 19.5 | % | |||||||||||||
Index and ESG products total
|
91,188 | 71,328 | 84,118 | 27.8 | % | 8.4 | % | |||||||||||||
Risk management analytics
|
57,980 | 10,640 | 54,593 | 444.9 | % | 6.2 | % | |||||||||||||
Portfolio management analytics
|
30,993 | 31,883 | 30,424 | (2.8 | %) | 1.9 | % | |||||||||||||
Energy and commodity analytics
|
4,871 | 4,939 | 3,290 | (1.4 | %) | 48.0 | % | |||||||||||||
Total Performance and Risk revenues
|
$ | 185,032 | $ | 118,790 | $ | 172,425 | 55.8 | % | 7.3 | % | ||||||||||
Total Governance revenues
|
28,286 | - | 30,308 | n/m | (6.7 | %) | ||||||||||||||
Total operating revenues
|
$ | 213,318 | $ | 118,790 | $ | 202,733 | 79.6 | % | 5.2 | % | ||||||||||
Subscriptions
|
$ | 176,791 | $ | 93,770 | $ | 171,384 | 88.5 | % | 3.2 | % | ||||||||||
Asset-based fees
|
28,330 | 22,874 | 25,134 | 23.9 | % | 12.7 | % | |||||||||||||
Non-recurring revenues
|
8,197 | 2,146 | 6,215 | 282.0 | % | 31.9 | % | |||||||||||||
Total operating revenues
|
$ | 213,318 | $ | 118,790 | $ | 202,733 | 79.6 | % | 5.2 | % |
Fiscal Year Ended
|
||||||||||||
November 30,
|
||||||||||||
In thousands
|
2010
|
2009
|
Change
|
|||||||||
Index and ESG products
|
||||||||||||
Subscriptions
|
$ | 224,600 | $ | 188,531 | 19.1 | % | ||||||
Asset-based fees
|
105,799 | 71,966 | 47.0 | % | ||||||||
Index and ESG products total
|
330,399 | 260,497 | 26.8 | % | ||||||||
Risk management analytics
|
134,521 | 37,656 | 257.2 | % | ||||||||
Portfolio management analytics
|
123,159 | 129,270 | (4.7 | %) | ||||||||
Energy and commodity analytics
|
16,228 | 15,525 | 4.5 | % | ||||||||
Total Performance and Risk revenues
|
$ | 604,307 | $ | 442,948 | 36.4 | % | ||||||
Total Governance revenues
|
58,594 | - | n/m | |||||||||
Total operating revenues
|
$ | 662,901 | $ | 442,948 | 49.7 | % | ||||||
Subscriptions
|
$ | 537,768 | $ | 362,140 | 48.5 | % | ||||||
Asset-based fees
|
104,084 | 71,966 | 44.6 | % | ||||||||
Non-recurring revenues
|
21,049 | 8,842 | 138.1 | % | ||||||||
Total operating revenues
|
$ | 662,901 | $ | 442,948 | 49.7 | % |
Three Months Ended
|
Change from
|
|||||||||||||||||||
November 30,
|
August 31,
|
November 30,
|
August 31,
|
|||||||||||||||||
In thousands
|
2010
|
2009
|
2010
|
2009
|
2010
|
|||||||||||||||
Cost of services
|
||||||||||||||||||||
Compensation
|
$ | 48,849 | $ | 20,800 | $ | 50,313 | 134.8 | % | (2.9 | %) | ||||||||||
Non-Recurring Stock Based Comp
|
1,617 | 2,103 | 1,624 | (23.1 | %) | (0.4 | %) | |||||||||||||
Total Compensation
|
$ | 50,466 | $ | 22,903 | $ | 51,937 | 120.3 | % | (2.8 | %) | ||||||||||
Non-Compensation
|
18,665 | 9,311 | 17,804 | 100.5 | % | 4.8 | % | |||||||||||||
Total cost of services
|
$ | 69,131 | $ | 32,214 | $ | 69,741 | 114.6 | % | (0.9 | %) | ||||||||||
Selling, general and administrative
|
||||||||||||||||||||
Compensation
|
29,508 | 18,473 | 30,280 | 59.7 | % | (2.5 | %) | |||||||||||||
Non-Recurring Stock Based Comp
|
2,410 | 4,151 | 2,603 | (41.9 | %) | (7.4 | %) | |||||||||||||
Total Compensation
|
$ | 31,918 | $ | 22,624 | $ | 32,883 | 41.1 | % | (2.9 | %) | ||||||||||
Transaction expenses
|
- | - | 13,692 | - | - | |||||||||||||||
Non-compensation excl. transaction expenses
|
17,382 | 10,863 | 16,731 | 60.0 | % | 3.9 | % | |||||||||||||
Total selling, general and administrative
|
$ | 49,300 | $ | 33,487 | $ | 63,306 | 47.2 | % | (22.1 | %) | ||||||||||
Restructuring costs
|
1,943 | - | 6,953 | n/m | (72.1 | %) | ||||||||||||||
Amortization of intangible assets
|
16,694 | 6,268 | 16,350 | 166.4 | % | 2.1 | % | |||||||||||||
Depreciation and amortization
|
5,530 | 3,065 | 4,934 | 80.4 | % | 12.1 | % | |||||||||||||
Total operating expenses
|
$ | 142,598 | $ | 75,034 | $ | 161,284 | 90.0 | % | (11.6 | %) | ||||||||||
In thousands
|
||||||||||||||||||||
Total non-recurring stock based comp
|
$ | 4,027 | $ | 6,254 | $ | 4,227 | (35.6 | %) | (4.7 | %) | ||||||||||
Compensation excluding non-recurring comp
|
78,357 | 39,273 | 80,593 | 99.5 | % | (2.8 | %) | |||||||||||||
Transaction expenses
|
- | - | 13,692 | - | - | |||||||||||||||
Non-compensation excluding transaction expenses
|
36,047 | 20,174 | 34,535 | 78.7 | % | 4.4 | % | |||||||||||||
Restructuring charges
|
1,943 | - | 6,953 | n/m | (72.1 | %) | ||||||||||||||
Amortization of intangible assets
|
16,694 | 6,268 | 16,350 | 166.4 | % | 2.1 | % | |||||||||||||
Depreciation and amortization
|
5,530 | 3,065 | 4,934 | 80.4 | % | 12.1 | % | |||||||||||||
Total operating expenses
|
$ | 142,598 | $ | 75,034 | $ | 161,284 | 90.0 | % | (11.6 | %) |
|
www.msci.com
|
Fiscal Year Ended
|
||||||||||||||||
November 30,
|
||||||||||||||||
In thousands
|
2010
|
2009
|
$ Change
|
% Change
|
||||||||||||
Cost of services
|
||||||||||||||||
Compensation
|
$ | 142,485 | $ | 78,317 | 64,168 | 81.9 | % | |||||||||
Non-Recurring Stock Based Comp
|
4,639 | 9,355 | (4,716 | ) | (50.4 | %) | ||||||||||
Total Compensation
|
$ | 147,124 | $ | 87,672 | 59,452 | 67.8 | % | |||||||||
Non-compensation
|
51,502 | 30,993 | 20,508 | 66.2 | % | |||||||||||
Total cost of services
|
$ | 198,626 | $ | 118,665 | 79,961 | 67.4 | % | |||||||||
Selling, general and administrative
|
||||||||||||||||
Compensation
|
102,144 | 75,501 | 26,643 | 35.3 | % | |||||||||||
Non-Recurring Stock Based Comp
|
7,727 | 17,297 | (9,571 | ) | (55.3 | %) | ||||||||||
Total Compensation
|
$ | 109,871 | $ | 92,798 | 17,072 | 18.4 | % | |||||||||
Transaction expenses
|
21,206 | - | 21,206 | n/m | ||||||||||||
Non-compensation excl. transaction expenses
|
59,167 | 42,982 | 16,185 | 37.7 | % | |||||||||||
Total selling, general and administrative
|
$ | 190,244 | $ | 135,780 | 54,464 | 40.1 | % | |||||||||
Restructuring costs
|
8,896 | - | 8,896 | n/m | ||||||||||||
Amortization of intangible assets
|
41,599 | 25,554 | 16,045 | 62.8 | % | |||||||||||
Depreciation and amortization
|
17,413 | 11,957 | 5,456 | 45.6 | % | |||||||||||
Total operating expenses
|
$ | 456,778 | $ | 291,956 | 164,822 | 56.5 | % | |||||||||
In thousands
|
$ Change
|
% Change
|
||||||||||||||
Total non-recurring stock based comp
|
$ | 12,366 | $ | 26,652 | (14,287 | ) | (53.6 | %) | ||||||||
Compensation excluding non-recurring comp
|
244,629 | 153,818 | 90,811 | 59.0 | % | |||||||||||
Transaction expenses
|
21,206 | - | 21,206 | n/m | ||||||||||||
Non-compensation excluding transaction expenses
|
110,669 | 73,975 | 36,693 | 49.6 | % | |||||||||||
Restructuring charges
|
8,896 | - | 8,896 | n/m | ||||||||||||
Amortization of intangible assets
|
41,599 | 25,554 | 16,045 | 62.8 | % | |||||||||||
Depreciation and amortization
|
17,413 | 11,957 | 5,456 | 45.6 | % | |||||||||||
Total operating expenses
|
$ | 456,778 | $ | 291,956 | 164,822 | 56.5 | % |
|
www.msci.com
|
Three Months Ended
|
Fiscal Year Ended
|
Change from
|
||||||||||||||||||||||||||
November 30,
|
August 31,
|
November 30,
|
FYE
|
|||||||||||||||||||||||||
In thousands
|
2010
|
2009
|
2010
|
2010
|
2009
|
Q4 2009 |
11/30/2009
|
|||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||
Performance and Risk
|
$ | 185,032 | $ | 118,790 | $ | 172,425 | $ | 604,307 | $ | 442,948 | 55.8 | % | 36.4 | % | ||||||||||||||
Governance
|
28,286 | - | 30,308 | 58,594 | - | n/m | n/m | |||||||||||||||||||||
Total Operating revenues
|
$ | 213,318 | $ | 118,790 | $ | 202,733 | $ | 662,901 | $ | 442,948 | 79.6 | % | 49.7 | % | ||||||||||||||
Operating Income
|
||||||||||||||||||||||||||||
Performance and Risk
|
67,743 | 43,756 | 38,672 | 200,369 | 150,992 | 54.8 | % | 32.7 | % | |||||||||||||||||||
Margin
|
36.6 | % | 36.8 | % | 22.4 | % | 33.2 | % | 34.1 | % | ||||||||||||||||||
Governance
|
2,977 | - | 2,777 | 5,754 | - | n/m | n/m | |||||||||||||||||||||
Margin
|
10.5 | % | 9.2 | % | 9.8 | % | ||||||||||||||||||||||
Total Operating Income
|
$ | 70,720 | $ | 43,756 | $ | 41,449 | $ | 206,123 | $ | 150,992 | 61.6 | % | 36.5 | % | ||||||||||||||
Margin
|
33.2 | % | 36.8 | % | 20.4 | % | 31.1 | % | 34.1 | % | ||||||||||||||||||
Adjusted EBITDA
|
||||||||||||||||||||||||||||
Performance and Risk
|
90,552 | 59,343 | 80,007 | 291,642 | 215,155 | 52.6 | % | 35.5 | % | |||||||||||||||||||
Margin
|
48.9 | % | 50.0 | % | 46.4 | % | 48.3 | % | 48.6 | % | ||||||||||||||||||
Governance
|
8,362 | - | 7,599 | 15,961 | - | n/m | n/m | |||||||||||||||||||||
Margin
|
29.6 | % | 25.1 | % | 27.2 | % | ||||||||||||||||||||||
Total Adjusted EBITDA
|
$ | 98,914 | $ | 59,343 | $ | 87,606 | $ | 307,603 | $ | 215,155 | 66.7 | % | 43.0 | % | ||||||||||||||
Margin
|
46.4 | % | 50.0 | % | 43.2 | % | 46.4 | % | 48.6 | % |
Fiscal Year Ended
|
Change from
|
|||||||||||||||||||||||
Fourth Quarter
|
November 30,
|
Q4 |
Fiscal Year
|
|||||||||||||||||||||
In thousands
|
2010
|
2009 | 1 | 2010 | 2 | 2009 | 3 | 2009 | 2009 | |||||||||||||||
Index and ESG products
|
||||||||||||||||||||||||
Subscriptions
|
$ | 61,143 | $ | 52,960 | $ | 233,667 | $ | 200,781 | 15.5 | % | 16.4 | % | ||||||||||||
Asset-based fees
|
30,045 | 22,874 | 105,799 | 71,966 | 31.4 | % | 47.0 | % | ||||||||||||||||
Index and ESG products total
|
91,188 | 75,834 | 339,466 | 272,747 | 20.2 | % | 24.5 | % | ||||||||||||||||
Risk management analytics
|
57,980 | 50,230 | 214,327 | 196,348 | 15.4 | % | 9.2 | % | ||||||||||||||||
Portfolio management analytics
|
30,993 | 31,883 | 123,159 | 129,270 | (2.8 | %) | (4.7 | %) | ||||||||||||||||
Energy and commodity analytics
|
4,871 | 4,939 | 16,226 | 15,525 | (1.4 | %) | 4.5 | % | ||||||||||||||||
Total Performance and Risk revenues
|
$ | 185,032 | $ | 162,886 | $ | 693,178 | $ | 613,890 | 13.6 | % | 12.9 | % | ||||||||||||
Total Governance revenues
|
28,286 | 32,376 | 123,241 | 132,419 | (12.6 | %) | (6.9 | %) | ||||||||||||||||
Total operating revenues
|
$ | 213,318 | $ | 195,262 | $ | 816,419 | $ | 746,309 | 9.2 | % | 9.4 | % | ||||||||||||
Subscriptions
|
$ | 176,791 | $ | 164,625 | $ | 678,968 | $ | 643,266 | 7.4 | % | 5.6 | % | ||||||||||||
Asset-based fees
|
28,330 | 22,874 | 104,084 | 71,966 | 23.9 | % | 44.6 | % | ||||||||||||||||
Non-recurring revenues
|
8,197 | 7,763 | 33,367 | 31,077 | 5.6 | % | 7.4 | % | ||||||||||||||||
Total operating revenues
|
$ | 213,318 | $ | 195,262 | $ | 816,419 | $ | 746,309 | 9.2 | % | 9.4 | % | ||||||||||||
1MSCI's fourth quarter ended November 30, 2009 and RiskMetrics' fourth quarter ended December 31, 2009.
|
||||||||||||||||||||||||
2Includes MSCI's results for the fiscal year ended November 30, 2010 and RiskMetrics' fourth quarter ended December 31, 2009 and first quarter ended March 31, 2010.
|
||||||||||||||||||||||||
3Includes MSCI's results for the fiscal year ended November 30, 2009 and RiskMetrics' fiscal year ended December 31, 2009.
|
|
www.msci.com
|
Fiscal Year Ended
|
Change from
|
|||||||||||||||||||||||
Fourth Quarter
|
November 30,
|
Q4 |
Fiscal Year
|
|||||||||||||||||||||
In thousands
|
2010
|
2009 | 1 | 2010 | 2 | 2009 | 3 | 2009 | 2009 | |||||||||||||||
Cost of services
|
||||||||||||||||||||||||
Compensation
|
$ | 48,849 | $ | 47,277 | $ | 197,417 | $ | 184,523 | 3.3 | % | 7.0 | % | ||||||||||||
Non-Recurring Stock Based Comp
|
1,617 | 2,103 | 4,639 | 9,355 | (23.1 | %) | (50.4 | %) | ||||||||||||||||
Total Compensation
|
$ | 50,466 | $ | 49,380 | $ | 202,056 | $ | 193,878 | 2.2 | % | 4.2 | % | ||||||||||||
Non-compensation
|
18,665 | 19,181 | 70,883 | 65,077 | (2.7 | %) | 8.9 | % | ||||||||||||||||
Total cost of services
|
$ | 69,131 | $ | 68,561 | $ | 272,939 | $ | 258,955 | 0.8 | % | 5.4 | % | ||||||||||||
Selling, general and administrative
|
||||||||||||||||||||||||
Compensation
|
29,508 | 27,675 | 121,722 | 113,805 | 6.6 | % | 7.0 | % | ||||||||||||||||
Non-Recurring Stock Based Comp
|
2,410 | 4,151 | 7,727 | 17,297 | (41.9 | %) | (55.3 | %) | ||||||||||||||||
Total Compensation
|
$ | 31,918 | $ | 31,826 | $ | 129,449 | $ | 131,102 | 0.3 | % | (1.3 | %) | ||||||||||||
Transaction expenses
|
- | - | - | - | - | - | ||||||||||||||||||
Non-compensation excl. transaction expenses
|
17,382 | 16,535 | 69,841 | 70,323 | 5.1 | % | (0.7 | %) | ||||||||||||||||
Total selling, general and administrative
|
$ | 49,300 | $ | 48,361 | $ | 199,290 | $ | 201,425 | 1.9 | % | (1.1 | %) | ||||||||||||
Restructuring costs
|
1,943 | - | 8,896 | - | n/m | n/m | ||||||||||||||||||
Amortization of intangible assets
|
16,230 | 18,171 | 64,477 | 73,164 | (10.7 | %) | (11.9 | %) | ||||||||||||||||
Depreciation and amortization
|
5,530 | 5,161 | 21,660 | 20,306 | 7.2 | % | 6.7 | % | ||||||||||||||||
Total operating expenses
|
$ | 142,134 | $ | 140,254 | $ | 567,262 | $ | 553,850 | 1.3 | % | 2.4 | % | ||||||||||||
In thousands
|
||||||||||||||||||||||||
Total non-recurring stock based comp
|
$ | 4,027 | $ | 6,254 | $ | 12,366 | $ | 26,652 | (35.6 | %) | (53.6 | %) | ||||||||||||
Compensation excluding non-recurring comp
|
78,357 | 74,952 | 319,139 | 298,328 | 4.5 | % | 7.0 | % | ||||||||||||||||
Transaction expenses
|
- | - | - | - | - | - | ||||||||||||||||||
Non-compensation excluding transaction expenses
|
36,047 | 35,716 | 140,724 | 135,400 | 0.9 | % | 3.9 | % | ||||||||||||||||
Restructuring charges
|
1,943 | - | 8,896 | - | n/m | n/m | ||||||||||||||||||
Amortization of intangible assets
|
16,230 | 18,171 | 64,477 | 73,164 | (10.7 | %) | (11.9 | %) | ||||||||||||||||
Depreciation and amortization
|
5,530 | 5,161 | 21,660 | 20,306 | 7.2 | % | 6.7 | % | ||||||||||||||||
Total operating expenses
|
$ | 142,134 | $ | 140,254 | $ | 567,262 | $ | 553,850 | 1.3 | % | 2.4 | % | ||||||||||||
1MSCI's fourth quarter ended November 30, 2009 and RiskMetrics' fourth quarter ended December 31, 2009.
|
2Includes MSCI's results for the fiscal year ended November 30, 2010 and RiskMetrics' fourth quarter ended December 31, 2009 and first quarter ended March 31, 2010.
|
3Includes MSCI's results for the fiscal year ended November 30, 2009 and RiskMetrics' fiscal year ended December 31, 2009.
|
|
www.msci.com
|
Fiscal Year Ended
|
Change from
|
|||||||||||||||||||||||
Fourth Quarter1
|
November 30,
|
Q4 |
Fiscal Year
|
|||||||||||||||||||||
In thousands
|
2010
|
2009 | 1 | 2010 | 2 | 2009 | 3 | 2009 | 2009 | |||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Performance and Risk
|
$ | 185,032 | $ | 162,886 | $ | 693,178 | $ | 613,890 | 13.6 | % | 12.9 | % | ||||||||||||
Governance
|
28,286 | 32,376 | 123,241 | 132,419 | (12.6 | %) | (6.9 | %) | ||||||||||||||||
Total Operating revenues
|
$ | 213,318 | $ | 195,262 | $ | 816,419 | $ | 746,309 | 9.2 | % | 9.4 | % | ||||||||||||
Operating Income
|
||||||||||||||||||||||||
Performance and Risk
|
68,177 | 50,781 | 235,883 | 176,421 | 34.3 | % | 33.7 | % | ||||||||||||||||
Margin
|
36.8 | % | 31.2 | % | 34.0 | % | 28.7 | % | ||||||||||||||||
Governance
|
3,007 | 4,227 | 13,274 | 16,038 | (28.9 | %) | (17.2 | %) | ||||||||||||||||
Margin
|
10.6 | % | 2.2 | % | 10.8 | % | 2.1 | % | ||||||||||||||||
Total Operating Income
|
$ | 71,184 | $ | 55,008 | $ | 249,157 | $ | 192,459 | 29.4 | % | 29.5 | % | ||||||||||||
Margin
|
33.4 | % | 28.2 | % | 30.5 | % | 25.8 | % | ||||||||||||||||
Adjusted EBITDA
|
||||||||||||||||||||||||
Performance and Risk
|
90,552 | 76,004 | 324,283 | 279,230 | 19.1 | % | 16.1 | % | ||||||||||||||||
Margin
|
48.9 | % | 46.7 | % | 46.8 | % | 45.5 | % | ||||||||||||||||
Governance
|
8,362 | 8,590 | 32,273 | 33,351 | (2.7 | %) | (3.2 | %) | ||||||||||||||||
Margin
|
29.6 | % | 26.5 | % | 26.2 | % | 25.2 | % | ||||||||||||||||
Total Adjusted EBITDA
|
$ | 98,914 | $ | 84,594 | $ | 356,556 | $ | 312,581 | 16.9 | % | 14.1 | % | ||||||||||||
Margin
|
46.4 | % | 43.3 | % | 43.7 | % | 41.9 | % | ||||||||||||||||
1MSCI's fourth quarter ended November 30, 2009 and RiskMetrics' fourth quarter ended December 31, 2009.
|
2Includes MSCI's results for the fiscal year ended November 30, 2010 and RiskMetrics' fourth quarter ended December 31, 2009 and first quarter ended March 31, 2010.
|
3Includes MSCI's results for the fiscal year ended November 30, 2009 and RiskMetrics' fiscal year ended December 31, 2009.
|
|
www.msci.com
|
As of or For the Quarter Ended
|
Change from
|
|||||||||||||||||||
November
|
August
|
November
|
August
|
|||||||||||||||||
Dollars in thousands
|
2010
|
2009
|
2010
|
2009
|
2010
|
|||||||||||||||
Run Rates 2
|
||||||||||||||||||||
Index and ESG products
|
||||||||||||||||||||
Subscriptions
|
$ | 235,370 | $ | 202,785 | $ | 224,496 | 16.1 | % | 4.8 | % | ||||||||||
Asset-based fees
|
114,233 | 95,201 | 100,577 | 20.0 | % | 13.6 | % | |||||||||||||
Index and ESG products total
|
349,603 | 297,986 | 325,073 | 17.3 | % | 7.5 | % | |||||||||||||
Risk management analytics
|
235,422 | 197,997 | 224,581 | 18.9 | % | 4.8 | % | |||||||||||||
Portfolio management analytics
|
117,256 | 122,192 | 121,795 | (4.0 | %) | (3.7 | %) | |||||||||||||
Energy and commodity analytics
|
15,330 | 15,365 | 15,254 | (0.2 | %) | 0.5 | % | |||||||||||||
Total Performance and Risk Run Rate
|
$ | 717,611 | $ | 633,540 | $ | 686,703 | 13.3 | % | 4.5 | % | ||||||||||
Governance Run Rate
|
105,534 | 111,841 | 105,735 | (5.6 | %) | (0.2 | %) | |||||||||||||
Total Run Rate
|
$ | 823,145 | $ | 745,381 | $ | 792,438 | 10.4 | % | 3.9 | % | ||||||||||
Subscription total
|
708,912 | 650,180 | 691,861 | 9.0 | % | 2.5 | % | |||||||||||||
Asset-based fees total
|
114,233 | 95,201 | 100,577 | 20.0 | % | 13.6 | % | |||||||||||||
Total Run Rate
|
$ | 823,145 | $ | 745,381 | $ | 792,438 | 10.4 | % | 3.9 | % | ||||||||||
Subscription Run Rate by region
|
||||||||||||||||||||
% Americas
|
53 | % | 51 | % | 53 | % | ||||||||||||||
% non-Americas
|
47 | % | 49 | % | 47 | % | ||||||||||||||
Subscription Run Rate by client type
|
||||||||||||||||||||
% Asset Management
|
56 | % | 57 | % | 57 | % | ||||||||||||||
% Banking & Trading
|
16 | % | 16 | % | 15 | % | ||||||||||||||
% Alternative Invt Mgmt
|
11 | % | 10 | % | 12 | % | ||||||||||||||
% Asset Owners & Consultants
|
9 | % | 9 | % | 9 | % | ||||||||||||||
% Corporate
|
2 | % | 2 | % | 2 | % | ||||||||||||||
% Others
|
5 | % | 5 | % | 5 | % | ||||||||||||||
New Recurring Sales
|
$ | 37,284 | $ | 27,757 | $ | 34,556 | 34.3 | % | 7.9 | % | ||||||||||
Subscription Cancellations
|
(25,525 | ) | (28,640 | ) | (19,113 | ) | (10.9 | %) | 33.5 | % | ||||||||||
Net New Recurring Subscription Sales
|
$ | 11,759 | $ | (883 | ) | $ | 15,443 | n/m | (23.9 | %) | ||||||||||
Non-recurring sales
|
11,147 | 8,500 | 6,575 | 31.1 | % | 69.5 | % | |||||||||||||
Employees
|
2,077 | 2,043 | 2,063 | 1.7 | % | 0.7 | % | |||||||||||||
% Employees by location
|
||||||||||||||||||||
High Cost Centers
|
70 | % | 77 | % | 72 | % | ||||||||||||||
Low Cost Centers
|
30 | % | 23 | % | 28 | % |
1 MSCI Inc. in August and November 2010 quarters and for combined legacy MSCI and RiskMetrics results in prior periods. Includes addition of $13.2 million in risk management analytics run rate as a result of Measurisk LLC acquisition, which was completed on July 31, 2010.
|
|
2 The run rate at a particular point in time represents the forward-looking fees for the next 12 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 fee earned under such license or subscription. The run rate does not include fees associated with “one-time” and other non-recurring transactions. In addition, we remove from the run rate the fees 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.
|
|
www.msci.com
|
Recurring Subscription Sales & Subscription Cancellations
|
2009
|
2010
|
|||||||||||||||||||||||||||||||||||||||
February
|
May
|
August
|
November
|
February
|
May
|
August
|
November
|
FY 2009
|
FY 2010
|
|||||||||||||||||||||||||||||||
New Recurring Subscription Sales
|
$ | 24,711 | $ | 21,254 | $ | 23,469 | $ | 27,757 | $ | 30,273 | $ | 34,280 | $ | 34,556 | $ | 37,284 | $ | 97,191 | $ | 136,393 | ||||||||||||||||||||
Subscription Cancellations
|
(22,692 | ) | (23,712 | ) | (28,690 | ) | (28,640 | ) | (22,434 | ) | (17,495 | ) | (19,113 | ) | (25,525 | ) | (103,734 | ) | (84,567 | ) | ||||||||||||||||||||
Net New Recurring Subscription Sales
|
$ | 2,019 | $ | (2,457 | ) | $ | (5,221 | ) | $ | (883 | ) | $ | 7,839 | $ | 16,785 | $ | 15,443 | $ | 11,759 | $ | (6,543 | ) | $ | 51,826 |
Aggregate & Core Retention Rates
|
2009
|
2010
|
|||||||||||||||||||||||||||||||||||||||
February
|
May
|
August
|
November
|
February
|
May
|
August
|
November
|
FY 2009
|
FY 2010
|
|||||||||||||||||||||||||||||||
Aggregate Retention Rate 1
|
||||||||||||||||||||||||||||||||||||||||
Index and ESG products
|
93.8 | % | 92.8 | % | 90.5 | % | 88.5 | % | 93.8 | % | 92.4 | % | 90.9 | % | 92.1 | % | 91.4 | % | 92.3 | % | ||||||||||||||||||||
Risk management analytics
|
85.5 | % | 79.5 | % | 80.4 | % | 80.2 | % | 81.5 | % | 91.3 | % | 89.7 | % | 85.4 | % | 81.4 | % | 87.4 | % | ||||||||||||||||||||
Portfolio management analytics
|
86.5 | % | 82.2 | % | 69.1 | % | 77.7 | % | 92.3 | % | 84.6 | % | 83.7 | % | 69.1 | % | 78.9 | % | 82.4 | % | ||||||||||||||||||||
Energy & commodity analytics
|
90.5 | % | 91.3 | % | 84.5 | % | 88.5 | % | 85.5 | % | 80.5 | % | 90.5 | % | 83.4 | % | 88.7 | % | 85.0 | % | ||||||||||||||||||||
Total Performance and Risk
|
88.8 | % | 85.0 | % | 81.0 | % | 82.5 | % | 88.7 | % | 89.9 | % | 88.8 | % | 84.2 | % | 84.3 | % | 88.0 | % | ||||||||||||||||||||
Total Governance
|
73.0 | % | 84.6 | % | 85.4 | % | 78.7 | % | 74.2 | % | 86.0 | % | 86.4 | % | 86.3 | % | 80.4 | % | 83.3 | % | ||||||||||||||||||||
Total Aggregate Retention Rate
|
85.6 | % | 85.1 | % | 81.9 | % | 82.0 | % | 86.2 | % | 89.2 | % | 88.4 | % | 84.6 | % | 83.7 | % | 87.2 | % | ||||||||||||||||||||
Core Retention Rate 2
|
||||||||||||||||||||||||||||||||||||||||
Index and ESG products
|
94.0 | % | 93.1 | % | 91.2 | % | 89.1 | % | 94.5 | % | 92.9 | % | 91.2 | % | 92.4 | % | 91.9 | % | 92.7 | % | ||||||||||||||||||||
Risk management analytics
|
85.5 | % | 81.4 | % | 81.0 | % | 81.2 | % | 82.9 | % | 92.3 | % | 92.0 | % | 85.4 | % | 82.3 | % | 88.5 | % | ||||||||||||||||||||
Portfolio management analytics
|
87.8 | % | 83.7 | % | 70.5 | % | 78.4 | % | 94.3 | % | 86.3 | % | 86.8 | % | 71.2 | % | 80.1 | % | 84.7 | % | ||||||||||||||||||||
Energy & commodity analytics
|
90.6 | % | 91.3 | % | 84.5 | % | 89.9 | % | 85.5 | % | 80.5 | % | 90.5 | % | 83.4 | % | 89.1 | % | 85.0 | % | ||||||||||||||||||||
Total Performance and Risk
|
89.2 | % | 86.3 | % | 81.8 | % | 83.4 | % | 89.9 | % | 90.8 | % | 90.5 | % | 84.8 | % | 85.2 | % | 88.9 | % | ||||||||||||||||||||
Total Governance
|
73.0 | % | 84.6 | % | 85.4 | % | 78.7 | % | 74.2 | % | 86.0 | % | 86.4 | % | 86.3 | % | 80.4 | % | 83.3 | % | ||||||||||||||||||||
Total Core Retention Rate
|
85.9 | % | 86.1 | % | 82.6 | % | 82.6 | % | 87.2 | % | 90.0 | % | 89.8 | % | 85.0 | % | 84.3 | % | 88.1 | % | ||||||||||||||||||||
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. Aggregate Retention Rates are generally higher during the first three fiscal quarters and lower in the fourth fiscal quarter. 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.
|
||||||||||||||||||||||||||||||||||||||||
2Our Core Retention Rate is calculated similarly to our Aggregate Retention Rate except that the Core Retention Rate does not treat switches between our products as a cancellation.
|
|
www.msci.com
|
2009
|
2010
|
|||||||||||||||||||||||||||||||||||||||
In Billions
|
February
|
May
|
August
|
November
|
February
|
May
|
August
|
November
|
FY 2009
|
FY 2010
|
||||||||||||||||||||||||||||||
Quarterly Average AUM in ETFs linked to MSCI Indices
|
$ | 126.4 | $ | 134.7 | $ | 180.3 | $ | 216.8 | $ | 239.3 | $ | 252.3 | $ | 252.0 | $ | 300.7 | $ | 164.5 | $ | 261.1 | ||||||||||||||||||||
Quarter-End AUM in ETFs linked to MSCI Indices
|
107.8 | 175.9 | 199.2 | 234.2 | 233.5 | 238.1 | 258.7 | 311.0 | 234.2 | 311.0 | ||||||||||||||||||||||||||||||
Sequential Change ($ Growth in Billions)
|
||||||||||||||||||||||||||||||||||||||||
Appreciation/Depreciation
|
$ | (13.6 | ) | $ | 42.2 | $ | 20.1 | $ | 18.0 | $ | (8.6 | ) | $ | (4.4 | ) | $ | 6.8 | $ | 28.2 | $ | 66.7 | $ | 22.0 | |||||||||||||||||
Cash Inflow/ Outflow
|
2.4 | 25.9 | 3.2 | 17.0 | 8.3 | 9.0 | 13.8 | 24.1 | 48.5 | 55.2 | ||||||||||||||||||||||||||||||
Total Change
|
$ | (11.2 | ) | $ | 68.1 | $ | 23.3 | $ | 35.0 | $ | (0.3 | ) | $ | 4.6 | $ | 20.6 | $ | 52.3 | $ | 115.2 | $ | 77.2 | ||||||||||||||||||
1Our ETF assets under management calculation methodology is ETF net asset value (NAV) multiplied by shares outstanding. The numbers in the tables are presented on this basis beginning with the February 2010 quarter. Periods prior to the February 2010 quarter have not been restated and are therefore not directly comparable.
|
Three Months Ended November 30, 2010
|
Three Months Ended November 30, 2009
|
|||||||||||||||||||||||
Performance and Risk
|
Governance
|
Total
|
Performance and Risk
|
Governance
|
Total
|
|||||||||||||||||||
Net Income
|
$ | 30,266 | $ | 24,535 | ||||||||||||||||||||
Plus: Other expense (income), net
|
19,641 | 4,103 | ||||||||||||||||||||||
Plus: Provision for income taxes
|
20,813 | 15,118 | ||||||||||||||||||||||
Operating income
|
$ | 67,743 | $ | 2,977 | $ | 70,720 | $ | 43,756 | $ | - | $ | 43,756 | ||||||||||||
Plus: Non-recurring stock based comp
|
4,027 | - | 4,027 | 6,254 | - | 6,254 | ||||||||||||||||||
Plus: Transaction costs
|
- | - | - | - | - | - | ||||||||||||||||||
Plus: Depreciation and amortization
|
4,797 | 733 | 5,530 | 3,065 | - | 3,065 | ||||||||||||||||||
Plus: Amortization of intangible assets
|
13,344 | 3,350 | 16,694 | 6,268 | - | 6,268 | ||||||||||||||||||
Plus: Restructuring costs
|
641 | 1,302 | 1,943 | - | - | - | ||||||||||||||||||
Adjusted EBITDA
|
$ | 90,552 | $ | 8,362 | $ | 98,914 | $ | 59,343 | $ | - | $ | 59,343 | ||||||||||||
Fiscal Year Ended November 30, 2010
|
Fiscal Year Ended November 30, 2009
|
|||||||||||||||||||||||
Performance and Risk
|
Governance
|
Total
|
Performance and Risk
|
Governance
|
Total
|
|||||||||||||||||||
Net Income
|
$ | 92,170 | $ | 81,801 | ||||||||||||||||||||
Plus: Other expense (income), net
|
52,632 | 19,271 | ||||||||||||||||||||||
Plus: Provision for income taxes
|
61,321 | 49,920 | ||||||||||||||||||||||
Operating income
|
$ | 200,369 | $ | 5,754 | $ | 206,123 | $ | 150,992 | $ | - | $ | 150,992 | ||||||||||||
Plus: Non-recurring stock based comp
|
12,366 | - | 12,366 | 26,652 | - | 26,652 | ||||||||||||||||||
Plus: Transaction costs
|
21,206 | - | 21,206 | - | - | - | ||||||||||||||||||
Plus: Depreciation and amortization
|
16,129 | 1,284 | 17,413 | 11,957 | - | 11,957 | ||||||||||||||||||
Plus: Amortization of intangible assets
|
34,899 | 6,700 | 41,599 | 25,554 | - | 25,554 | ||||||||||||||||||
Plus: Restructuring costs
|
6,673 | 2,223 | 8,896 | - | - | - | ||||||||||||||||||
Adjusted EBITDA
|
$ | 291,642 | $ | 15,961 | $ | 307,603 | $ | 215,155 | $ | - | $ | 215,155 |
|
www.msci.com
|
Three Months Ended November 30, 2010
|
Three Months Ended November 30, 2009
|
|||||||||||||||||||||||
Performance and Risk
|
Governance
|
Total
|
Performance and Risk
|
Governance
|
Total
|
|||||||||||||||||||
Net Income
|
$ | 30,557 | $ | 23,703 | ||||||||||||||||||||
Plus: Other expense (income), net
|
19,340 | 17,553 | ||||||||||||||||||||||
Plus: Provision for income taxes
|
21,287 | 13,752 | ||||||||||||||||||||||
Operating income
|
$ | 68,177 | $ | 3,007 | $ | 71,184 | $ | 50,781 | $ | 4,227 | $ | 55,008 | ||||||||||||
Plus: Non-recurring stock based comp
|
4,027 | - | 4,027 | 6,254 | - | 6,254 | ||||||||||||||||||
Plus: Transaction costs
|
- | - | - | - | - | - | ||||||||||||||||||
Plus: Depreciation and amortization
|
4,797 | 733 | 5,530 | 4,148 | 1,013 | 5,161 | ||||||||||||||||||
Plus: Amortization of intangible assets
|
12,910 | 3,320 | 16,230 | 14,821 | 3,350 | 18,171 | ||||||||||||||||||
Plus: Restructuring costs
|
641 | 1,302 | 1,943 | - | - | - | ||||||||||||||||||
Adjusted EBITDA
|
$ | 90,552 | $ | 8,362 | $ | 98,914 | $ | 76,004 | $ | 8,590 | $ | 84,594 | ||||||||||||
Fiscal Year Ended November 30, 2010
|
Fiscal Year Ended November 30, 2009
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Performance and Risk
|
Governance
|
Total
|
Performance and Risk
|
Governance
|
Total
|
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Net Income
|
$ | 110,831 | $ | 79,852 | ||||||||||||||||||||
Plus: Other expense (income), net
|
71,430 | 67,744 | ||||||||||||||||||||||
Plus: Provision for income taxes
|
66,896 | 44,863 | ||||||||||||||||||||||
Operating income
|
$ | 235,883 | $ | 13,274 | $ | 249,157 | $ | 176,421 | $ | 16,038 | $ | 192,459 | ||||||||||||
Plus: Non-recurring stock based comp
|
12,366 | - | 12,366 | 26,652 | - | 26,652 | ||||||||||||||||||
Plus: Transaction costs
|
- | - | - | - | - | - | ||||||||||||||||||
Plus: Depreciation and amortization
|
18,224 | 3,436 | 21,660 | 16,393 | 3,913 | 20,306 | ||||||||||||||||||
Plus: Amortization of intangible assets
|
51,137 | 13,340 | 64,477 | 59,764 | 13,400 | 73,164 | ||||||||||||||||||
Plus: Restructuring costs
|
6,673 | 2,223 | 8,896 | - | - | - | ||||||||||||||||||
Adjusted EBITDA
|
$ | 324,283 | $ | 32,273 | $ | 356,556 | $ | 279,230 | $ | 33,351 | $ | 312,581 |
|
www.msci.com
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Three Months Ended
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Fiscal Year Ended
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November 30,
|
August 31,
|
November 30,
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2010
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2009
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2010
|
2010
|
2009
|
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GAAP - Net income
|
$ | 30,266 | $ | 24,535 | $ | 10,319 | $ | 92,170 | $ | 81,801 | ||||||||||
Plus: Non-recurring stock based comp
|
4,027 | 6,254 | 4,227 | 12,366 | 26,652 | |||||||||||||||
Plus: Amortization of intangible assets
|
16,694 | 6,268 | 16,350 | 41,599 | 25,554 | |||||||||||||||
Plus: Transaction costs1
|
- | - | 14,526 | 22,040 | - | |||||||||||||||
Plus: Debt repayment expenses
|
- | - | 1,994 | 8,274 | - | |||||||||||||||
Plus: Restructuring costs
|
$ | 1,943 | - | 6,953 | $ | 8,896 | - | |||||||||||||
Less: Income tax effect2
|
(8,610 | ) | (4,771 | ) | (13,880 | ) | (31,015 | ) | (19,786 | ) | ||||||||||
Adjusted net income
|
$ | 44,320 | $ | 32,286 | $ | 40,489 | $ | 154,330 | $ | 114,221 | ||||||||||
GAAP - EPS
|
$ | 0.25 | $ | 0.24 | $ | 0.08 | $ | 0.81 | $ | 0.80 | ||||||||||
Plus: Non-recurring stock based comp
|
0.03 | 0.06 | 0.03 | 0.11 | 0.26 | |||||||||||||||
Plus: Amortization of intangible assets
|
0.14 | 0.06 | 0.13 | 0.36 | 0.25 | |||||||||||||||
Plus: Transaction costs1
|
0.00 | 0.00 | 0.12 | 0.19 | 0.00 | |||||||||||||||
Plus: Debt repayment expenses
|
0.00 | 0.00 | 0.02 | 0.07 | 0.00 | |||||||||||||||
Plus: Restructuring costs
|
0.02 | 0.00 | 0.06 | 0.08 | 0.00 | |||||||||||||||
Less: Income tax effect2
|
(0.08 | ) | (0.05 | ) | (0.11 | ) | (0.27 | ) | (0.19 | ) | ||||||||||
Adjusted EPS
|
$ | 0.36 | $ | 0.31 | $ | 0.33 | $ | 1.35 | $ | 1.12 | ||||||||||
1For the third quarter of 2010, includes $13.7 million in third party transaction expense included in SG&A expense and $0.8 million of expense included in interest expense. For the fiscal year 2010, includes $21.2 million in third party transaction expense included in SG&A expense and $0.8 million of expense included in interest expense.
|
2For the purposes of calculating Adjusted EPS, non-recurring stock based compensation, amortization of intangible assets, debt repayment expenses, and restructuring costs are assumed to be taxed at the effective tax rate excluding transaction costs. For the fourth quarter and fiscal year 2010, the rates are 39.9% and 37.4%, respectively. For the fourth quarter and fiscal year 2009, the rates are 38.1% and 37.9%, respectively.
|