FactSet Completes Sale of Market Metrics Business and Updates Fourth Quarter Fiscal 2016 Guidance
July 05 2016 - 7:00AM
FactSet Research Systems Inc. (NYSE:FDS) (NASDAQ:FDS), a leading
provider of integrated financial information and analytical
applications, today announced it has completed the sale of its
market research business, consisting of Market Metrics and Matrix
Solutions, to Asset International, a portfolio company of Genstar
Capital. Upon completion of the sale on July 1, 2016, FactSet
received $165 million in cash, less certain adjustments including,
among others, a customary working capital adjustment. Upon the
achievement of certain growth targets over the next two years by
the market research business that has been sold, FactSet would be
entitled to an additional earn-out of $10 million.
Updated Business Outlook for the Fourth Quarter of Fiscal
2016
The following forward-looking statements reflect FactSet’s
expectations as of today’s date. Given the risk factors,
uncertainties and assumptions discussed below, actual results may
differ materially. FactSet does not intend to update its
forward-looking statements until its next quarterly results
announcement, other than in publicly available statements.
Fourth Quarter Fiscal 2016 Expectations:
- Revenues are expected to range between $286 million and $292
million.
- GAAP operating margin is expected to range between 31.0% and
32.0%. Adjusted operating margin is expected to range between 32.5%
and 33.5%.
- The annual effective tax rate is expected to range between
28.0% and 29.0%.
- GAAP diluted EPS should range between $1.61 and $1.65. Adjusted
EPS is expected to range between $1.68 and $1.72. The midpoint of
the adjusted EPS range represents 12.6% growth over the prior
year.
$120 Million Accelerated Share Repurchase Program
On July 1, 2016 FactSet entered into an accelerated share
repurchase agreement with Bank of America, N.A. (“BofA”) to
repurchase $120 million of FactSet’s common stock. This agreement
was entered into pursuant to FactSet’s previously announced $165
million share repurchase program approved by FactSet’s Board of
Directors on May 19, 2016. FactSet expects to receive from BofA
approximately 0.6 million shares of FactSet’s common stock on July
5, 2016. At final settlement of the agreement, which is expected to
occur no later than the first quarter of fiscal 2017 and may occur
earlier in certain circumstances, BofA may be required to deliver
additional shares of common stock to FactSet, or, under certain
circumstances, FactSet may be required to deliver shares of its
common stock or may elect to make a cash payment to BofA, with the
number of shares to be delivered or the amount of such payment
based on the volume-weighted average price of FactSet’s common
stock during the term of the transaction and subject to adjustments
pursuant to the terms of the agreement.
About FactSet
FactSet delivers the world's best insight and information to
investment professionals through superior analytics, service,
content, and technology. More than 63,000 users make smarter
investment decisions with FactSet's desktop analytics, mobile
applications, and comprehensive data feeds. FactSet is also an
honoree of Fortune's 100 Best Companies to Work For and a Best
Workplace Award recipient in the United Kingdom and France. FactSet
is listed on the New York Stock Exchange and NASDAQ (NYSE:FDS)
(NASDAQ:FDS).
Forward-looking Statements
This news release contains forward-looking statements based on
management's current expectations, estimates and projections. All
statements that address expectations or projections about the
future, including statements about the Company's strategy for
growth, product development, market position, subscriptions,
expected expenditures and financial results are forward-looking
statements. Forward-looking statements may be identified by words
like "expects," "anticipates," "plans," "intends," "projects,"
"should," "indicates," "continues," "subscriptions" and similar
expressions. These statements are not guarantees of future
performance and involve a number of risks, uncertainties and
assumptions. Many factors, including those discussed more fully
elsewhere in this release and in FactSet's filings with the
Securities and Exchange Commission, particularly its latest annual
report on Form 10-K and quarterly reports on Form 10-Q, as well as
others, could cause results to differ materially from those stated.
These factors include, but are not limited to: the current status
of the global economy; the ability to integrate newly acquired
companies and businesses; the stability of global securities
markets; the ability to hire qualified personnel; the maintenance
of the Company's leading technological position; the impact of
global market trends on the Company's revenue growth rate and
future results of operations; the negotiation of contract terms
with corporate vendors, data suppliers and potential landlords; the
retention of key clients; the successful resolution of ongoing
audits by tax authorities; the continued employment of key
personnel; the absence of U.S. or foreign governmental regulation
restricting international business; and the sustainability of
historical levels of profitability and growth rates in cash flow
generation.
Contact:
Rachel Stern
FactSet Research Systems Inc.
203.810.1000
FactSet Research Systems (NYSE:FDS)
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