Thomson Reuters Reports First-Quarter 2015 Results
-- First-quarter performance consistent with full-year expectations
NEW YORK, April 29, 2015 -- Thomson Reuters (TSX / NYSE: TRI) today reported
results for the first quarter ended March 31, 2015. The company also
re-affirmed its full-year 2015 outlook.
* Reported revenues were down 3% as the negative impact of foreign currency
reduced revenues by 5%
+ Revenues grew 2% before currency
+ Organic revenues grew 1%
o Legal's organic revenues increased 3%
o Financial & Risk's organic revenues were unchanged
* Financial & Risk net sales were positive in all regions. Net sales were
positive for the fourth consecutive quarter
* Adjusted EBITDA decreased 2% to $803 million
+ The margin was 26.4% vs. 26.2% in the prior-year period
+ Excluding the impact of currency, adjusted EBITDA grew 4% and the
margin was 60 basis points higher than the prior-year period
* Underlying operating profit decreased 2% to $515 million
+ The margin was 16.9%, unchanged from the prior-year period
+ Excluding the impact of currency, underlying operating profit grew 6%
and the margin was 60 basis points higher than the prior-year period
* Adjusted EPS was $0.44 vs. $0.46 in the prior-year period
+ Foreign currency had a $0.06 negative impact on adjusted EPS
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"2015 is off to a solid start as we continue building our sustainable platform
for growth," said James C. Smith, president and chief executive officer of
Thomson Reuters. "We are strengthening our core businesses, improving all
aspects of our go-to-market capabilities and putting more resources behind
high-growth opportunities."
Consolidated Financial Highlights
Three Months Ended March 31,
(Millions of U.S. dollars, except EPS and margins)
IFRS Financial Measures 2015 2014 Change
Revenues $3,044 $3,130 -3%
Operating profit $407 $359 13%
Diluted earnings per share (EPS) $0.38 $0.34 12%
Cash flow from operations $237 $113 110%
Change Before
Non-IFRS Financial Measures (1) 2015 2014 Change Currency
Revenues from ongoing businesses $3,044 $3,129 -3% 2%
Adjusted EBITDA $803 $820 -2% 4%
Adjusted EBITDA margin 26.4% 26.2% 20bp 60bp
Underlying operating profit $515 $528 -2% 6%
Underlying operating profit margin 16.9% 16.9% 0bp 60bp
Adjusted earnings per share (EPS) $0.44 $0.46 -4% 9%
Free cash flow ($65) ($135) nm (2)
(1) These and other non-IFRS financial measures are defined and reconciled to
the most directly comparable IFRS measures in the tables appended to this news
release. Additional information is provided in the explanatory footnotes to the
appended tables.
(2) nm - not meaningful
* Revenues from ongoing businesses increased 2% (before currency) from the
prior-year period driven by the Legal, Tax & Accounting and Intellectual
Property & Science businesses, which grew 5% in aggregate (4% organically).
* Adjusted EBITDA decreased 2% from the prior-year period and the margin
increased 20 basis points to 26.4%. Excluding the impact of currency in the
quarter, the 2015 margin was 60 basis points higher than the prior-year
period.
* Underlying operating profit decreased 2% from the prior-year period with
the margin of 16.9% unchanged from the prior-year period. Excluding the
impact of currency, the 2015 margin was 60 basis points higher than the
prior-year period.
* Adjusted EPS decreased $0.02 from the prior-year period primarily due to
foreign currency having a $0.06 negative impact.
* Free cash flow was negative $65 million, a $70 million improvement compared
to the prior-year period primarily due to lower severance payments. The
first quarter is historically the company's weakest of the year for free
cash flow generation. For the full year, the company continues to expect
free cash flow to range between $1.55 billion and $1.75 billion.
First-Quarter Business Segment Highlights
Unless otherwise noted, all revenue growth comparisons in this news release are
before the impact of foreign currency (constant currency) as Thomson Reuters
believes this provides the best basis to measure the performance of its
business.
Financial & Risk
* Revenues were unchanged compared to the prior-year period and reflected a
substantial improvement compared to a 3% organic decline in both the first
quarter and the full-year 2014. This represented the segment's best
performance since the second quarter of 2012.
+ Recurring revenues (75% of the segment's revenues) decreased 1% (all
organic) due to lower price realization resulting from the migration of
some foreign exchange and buy-side customers to new products on
Financial & Risk's unified platform. Recurring revenues declined 2% (3%
organically) in the first quarter of 2014.
+ Transactions-related revenues (14% of the segment's revenues) were up
3% due to increased foreign exchange volumes.
+ Recoveries revenues (11% of the segment's revenues) were flat for the
quarter and are low-margin revenues. As some third-party clients move
to "direct billing" with customers, Recoveries revenues are expected to
decline over the balance of the year.
* By geography, revenues in Europe, Middle East and Africa (EMEA) were down
2%, revenues in the Americas were up 2% and revenues in Asia were down 1%.
* Net sales were positive overall and were positive in all regions. This
marked the fourth consecutive quarter of positive net sales.
* EBITDA increased 1% primarily due to savings related to efficiency
initiatives, which were partially offset by the impact of foreign currency.
+ The margin was 25.8%, up 170 basis points from the prior-year period.
Before the impact of currency from both periods and adjusted for the
impact of the charges we took in the first quarter of 2014 ($12
million), EBITDA increased 9% and the margin was up 250 basis points at
27.3% compared to the prior-year period.
+ Foreign currency had a 150 basis point negative impact on the margin.
* Operating profit was flat compared to the prior-year period with savings
related to efficiency initiatives offset by the negative impact of foreign
currency.
+ The margin was 15.5%, up 100 basis points from the prior-year period.
+ Foreign currency had a 190 basis point negative impact on the margin.
Legal
* Revenues increased 3% (all organic). Excluding US print, revenues grew 5%
(all organic). This represented the segment's best performance since the
first quarter of 2011.
* Solutions businesses (45% of the segment's revenues) grew 10% (9% organic),
driven by strong growth from FindLaw, UK Practical Law and Serengeti.
Solutions businesses represent all of Legal's revenue excluding US print
and US online legal information.
* US online legal information (41% of the segment's revenues) grew slightly,
representing its first quarter of positive growth since 2009.
* US print (14% of the segment's revenues) declined 6%, as expected.
* EBITDA decreased 2% and the margin was 34.4% compared to 35.4% in the
prior-year period. The margin was negatively impacted by investments and
some timing-related costs.
* Operating profit decreased 1% with a margin of 26.3% compared to 26.8% in
the prior-year period. The margin was impacted by the same factors noted
above.
Tax & Accounting
* Revenues increased 10% (7% organic) driven primarily by the Corporate and
Professional businesses. Recurring revenues were up 11% (7% organic).
* EBITDA increased 10% and the margin was 33.8% compared to 33.0% in the
prior-year period. The EBITDA margin increase was primarily related to the
flow through from strong revenue growth.
* Operating profit increased 17% and the margin was 26.3% compared to 24.1%
in the prior-year period. The margin improvement was primarily related to
flow through from strong revenue growth and lower depreciation and
amortization expense.
* Small movements in the timing of revenues and expenses can impact margins
in any given quarter for the Tax & Accounting business. Full-year margins
are more reflective of the segment's underlying performance.
Intellectual Property & Science
* Revenues were flat as subscription revenue (79% of the segment's revenues)
growth of 3% was offset by an 11% decline in transactions-related revenues
as the first quarter of 2014 had certain large one-time sales to Government
and Academic customers which did not repeat in the first quarter of 2015.
* EBITDA decreased 17% with a margin of 25.3% compared to 29.6% in the
prior-year period. The EBITDA margin decline was due to a lower margin
revenue mix and some non-recurring expenditures.
* Operating profit decreased 25% with a margin of 16.0% compared to 21.0% in
the prior-year period. The operating profit margin decrease was due to the
same items that impacted the EBITDA margin.
* Small movements in the timing of revenues and expenses can impact margins
in any given quarter for the Intellectual Property & Science business.
Full-year margins are more reflective of the segment's underlying
performance.
Corporate & Other (Including Reuters News)
* Reuters News revenues were $74 million, up 1% compared to the prior-year
period.
* Corporate & Other costs were $75 million compared to $62 million in the
prior-year period.
Business Outlook (Before Currency)
Thomson Reuters today re-affirmed its full-year business outlook for 2015 which
was previously communicated in February 2015. The company's 2015 Outlook
assumes constant currency rates compared to 2014 and is based on the expected
performance of the company's existing businesses and does not factor in the
impact of any acquisitions or divestitures that may occur during the year. In
light of the increased volatility recently seen in the foreign currency
markets, the company believes that currency is likely to have a
higher-than-usual impact on its results in 2015.
The company continues to expect:
* Positive organic revenue growth;
* Adjusted EBITDA margin to range between 27.5% and 28.5%;
* Underlying operating profit margin to range between 18.5% and 19.5%; and
* Free cash flow to range between $1.550 billion and $1.750 billion in 2015.
The information in this section is forward-looking and should be read in
conjunction with the section below entitled "Special Note Regarding
Forward-Looking Statements, Material Assumptions and Material Risks."
Dividend and Share Repurchases
In February 2015, Thomson Reuters board of directors approved a $0.02 per share
annualized increase in the dividend to $1.34 per share. A quarterly dividend of
$0.335 per share is payable on June 15, 2015 to common shareholders of record
as of May 21, 2015.
In the first quarter of 2015, the company returned approximately $348 million
to shareholders through the repurchase of approximately 8.8 million shares
under its current $1.0 billion share buyback program announced in July 2014.
Through March 31, 2015, the company has repurchased 18.4 million shares at a
cost of approximately $713 million since it announced the buyback program.
Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for
businesses and professionals. We combine industry expertise with innovative
technology to deliver critical information to leading decision makers in the
financial and risk, legal, tax and accounting, intellectual property and
science and media markets, powered by the world's most trusted news
organization. Thomson Reuters shares are listed on the Toronto and New York
Stock Exchanges (symbol: TRI). For more information, go to
http://www.thomsonreuters.com/.
NON-IFRS FINANCIAL MEASURES
Thomson Reuters prepares its financial statements in accordance with
International Financial Reporting Standards (IFRS), as issued by the
International Accounting Standards Board (IASB).
This news release includes certain non-IFRS financial measures, such as
revenues from ongoing businesses, adjusted EBITDA and the related margin,
underlying operating profit and the related margin, free cash flow, adjusted
EPS, and selected measures before the impact of foreign currency. Thomson
Reuters uses these non-IFRS financial measures as supplemental indicators of
its operating performance and financial position. These measures do not have
any standardized meanings prescribed by IFRS and therefore are unlikely to be
comparable to the calculation of similar measures used by other companies, and
should not be viewed as alternatives to measures of financial performance
calculated in accordance with IFRS. Non-IFRS financial measures are defined and
reconciled to the most directly comparable IFRS measures in the appended
tables.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL ASSUMPTIONS AND
MATERIAL RISKS
Certain statements in this news release, including, but not limited to,
statements in the "Business Outlook (Before Currency)" section and Mr. Smith's
comments, are forward-looking. As a result, forward-looking statements are
subject to a number of risks and uncertainties that could cause actual results
or events to differ materially from current expectations. There is no assurance
that the events described in any forward-looking statement will materialize. A
business outlook is provided for the purpose of presenting information about
current expectations for 2015. This information may not be appropriate for
other purposes. You are cautioned not to place undue reliance on
forward-looking statements which reflect expectations only as of the date of
this news release. Except as may be required by applicable law, Thomson Reuters
disclaims any obligation to update or revise any forward-looking statements.
The company's 2015 business outlook is based on various external and internal
assumptions. Economic and market assumptions include, but are not limited to,
GDP growth in the countries where Thomson Reuters operates. Internal financial
and operational assumptions include, but are not limited to, continuing
operational improvement in the Financial & Risk business and the successful
execution of new sales initiatives, ongoing product release programs,
globalization strategy and other growth and efficiency initiatives.
Some of the material risk factors that could cause actual results or events to
differ materially from those expressed in or implied by forward-looking
statements in this news release include, but are not limited to, changes in the
general economy; actions of competitors; failure to develop new products,
services, applications and functionalities to meet customers' needs, attract
new customers or expand into new geographic markets and identify areas of
higher growth; failures or disruptions of telecommunications, network systems
or the Internet; fraudulent or unpermitted data access or other cyber-security
or privacy breaches; increased accessibility to free or relatively inexpensive
information sources; failure to maintain a high renewal rate for
subscription-based services; dependency on third parties for data, information
and other services; changes to law and regulations, including the impact of the
Dodd-Frank legislation and similar financial services laws around the world;
tax matters, including changes to tax laws, regulations and treaties;
fluctuations in foreign currency exchange and interest rates; failure to adapt
to recent organizational changes and effectively implement strategic
initiatives; failure to recruit, motivate and retain high quality management
and key employees; failure to meet the challenges involved in operating
globally; failure to derive fully the anticipated benefits from existing or
future acquisitions, joint ventures, investments or dispositions; failure to
protect the brands and reputation of Thomson Reuters; impairment of goodwill
and identifiable intangible assets; inadequate protection of intellectual
property rights; threat of legal actions and claims; risk of antitrust/
competition-related claims or investigations; downgrading of credit ratings and
adverse conditions in the credit markets; the effect of factors outside of the
control of Thomson Reuters on funding obligations in respect of pension and
post-retirement benefit arrangements; and actions or potential actions that
could be taken by the company's principal shareholder, The Woodbridge Company
Limited. These and other factors are discussed in materials that Thomson
Reuters from time to time files with, or furnishes to, the Canadian securities
regulatory authorities and the U.S. Securities and Exchange Commission. Thomson
Reuters annual and quarterly reports are also available in the "Investor
Relations" section of http://www.thomsonreuters.com/.
CONTACTS
MEDIA INVESTORS
David Crundwell Frank J. Golden
Corporate Affairs Senior Vice President, Investor Relations
+1 646 223 5285 +1 646 223 5288
david.crundwell@thomsonreuters.com frank.golden@thomsonreuters.com
Thomson Reuters will webcast a discussion of its first-quarter 2015 results
today beginning at 8:30 a.m. Eastern Time (ET). You can access the webcast by
visiting the "Investor Relations" section of www.thomsonreuters.com. An
archive of the webcast will be available following the presentation.
Thomson Reuters Corporation
Business Segment Information
(millions of U.S. dollars)
(unaudited)
Three Months Ended Change
March 31, Before
2015 2014 Total Currency(5) Organic
Revenues
Financial & Risk $1,552 $1,658 -6% 0% 0%
Legal 810 803 1% 3% 3%
Tax & Accounting 373 348 7% 10% 7%
Intellectual Property & Science 237 243 -2% 0% 0%
Corporate & Other (includes Reuters News) 74 79 -6% 1% 1%
Eliminations (2) (2)
Revenues from ongoing businesses(1) 3,044 3,129 -3% 2% 1%
Other Businesses (2) - 1
Revenues $3,044 $3,130 -3%
Margin
Adjusted EBITDA (3) Change 2015 2014 Change
Financial & Risk $401 $399 1% 25.8% 24.1% 170bp
Legal 279 284 -2% 34.4% 35.4% -100bp
Tax & Accounting 126 115 10% 33.8% 33.0% 80bp
Intellectual Property & Science 60 72 -17% 25.3% 29.6% -430bp
Corporate & Other (includes Reuters News) (63) (50)
Adjusted EBITDA $803 $820 -2% 26.4% 26.2% 20bp
Underlying Operating Profit (4)
Financial & Risk $241 $240 0% 15.5% 14.5% 100bp
Legal 213 215 -1% 26.3% 26.8% -50bp
Tax & Accounting 98 84 17% 26.3% 24.1% 220bp
Intellectual Property & Science 38 51 -25% 16.0% 21.0% -500bp
Corporate & Other (includes Reuters News) (75) (62)
Underlying operating profit $515 $528 -2% 16.9% 16.9% 0bp
Thomson Reuters Corporation
Reconciliation of Operating Profit to Adjusted EBITDA (3)
(millions of U.S. dollars)
(unaudited)
Three Months Ended
March 31,
2015 2014 Change
Operating profit $407 $359 13%
Adjustments to remove:
Amortization of other identifiable intangible assets 149 163
Fair value adjustments (53) 2
Other operating losses, net 12 3
Operating loss from Other Businesses (2) - 1
Underlying operating profit $515 $528 -2%
Remove: depreciation and amortization of computer
software (excluding Other Businesses (2)) 288 292
Adjusted EBITDA $803 $820 -2%
Underlying operating profit margin (4) 16.9% 16.9% 0bp
Adjusted EBITDA margin (3) 26.4% 26.2% 20bp
Thomson Reuters Corporation
Reconciliation of Net Earnings to Adjusted EBITDA (3)
(millions of U.S. dollars)
(unaudited)
Three Months
Ended
March 31,
2015 2014 Change
Net earnings $320 $292 10%
Adjustments to remove:
Tax expense (benefit) 28 (13)
Other finance income (42) (28)
Net interest expense 105 108
Amortization of other identifiable intangible assets 149 163
Amortization of computer software 193 194
Depreciation 95 98
EBITDA $848 $814
Adjustments to remove:
Share of post-tax earnings in equity method (4) -
investments
Other operating losses, net 12 3
Fair value adjustments (53) 2
EBITDA from Other Businesses (2) - 1
Adjusted EBITDA $803 $820 -2%
Thomson Reuters Corporation
Reconciliation of Underlying Operating Profit(4) to Adjusted EBITDA(3) by Business Segment
(millions of U.S. dollars)
(unaudited)
Three Months Ended Three Months Ended
March 31, 2015 March 31, 2014
Add: Add:
Depreciation Depreciation
and and
Underlying Amortization Underlying Amortization
Operating of Computer Adjusted Operating of Computer Adjusted
Profit Software EBITDA Profit Software ** EBITDA
Financial & Risk $241 $160 $401 $240 $159 $399
Legal 213 66 279 215 69 284
Tax & Accounting 98 28 126 84 31 115
Intellectual Property & Science 38 22 60 51 21 72
Corporate & Other (includes Reuters News) (75) 12 (63) (62) 12 (50)
$515 $288 $803 $528 $292 $820
** Excludes Other Businesses (2)
Thomson Reuters Corporation
Reconciliation of Changes in Adjusted EBITDA (5), Underlying Operating Profit(5) and the Related Margins,
and Adjusted Earnings Per Share (EPS)(5) Excluding the Effects of Foreign Currency
(millions of U.S. dollars)
(unaudited)
Three Months Ended March 31,
% Change BP Change
2015 2014 Total Foreign Before 2015 2014 Total Foreign Before
Currency Currency Margin Margin Currency Currency
Adjusted EBITDA $803 $820 -2% -6% 4% 26.4% 26.2% 20bp -40bp 60bp
Underlying operating profit $515 $528 -2% -8% 6% 16.9% 16.9% 0bp -60bp 60bp
Adjusted EPS $0.44 $0.46 -4% -13% 9% n/a n/a n/a n/a n/a
n/a - not applicable
Thomson Reuters Corporation
Reconciliation of Earnings Attributable to Common Shareholders to Adjusted Earnings(6)
(millions of U.S. dollars, except as otherwise indicated and except for per share data)
(unaudited)
Three Months
Ended
March 31,
2015 2014
Earnings attributable to common shareholders $305 $282
Adjustments to remove:
Operating loss from Other Businesses (2) - 1
Fair value adjustments (53) 2
Other operating losses, net 12 3
Other finance income (42) (28)
Share of post-tax earnings in equity method investments (4) -
Tax on above items 14 -
Tax items impacting comparability (6) (14)
Amortization of other identifiable intangible assets 149 163
Interim period effective tax rate normalization (7) 1 (12)
Tax charge amortization (8) (22) (22)
Dividends declared on preference shares (1) (1)
Adjusted earnings $353 $374
Adjusted earnings per share $0.44 $0.46
Diluted weighted-average common shares (millions) 797.6 820.9
Thomson Reuters Corporation
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow(9)
(millions of U.S. dollars)
(unaudited)
Three Months Ended
March 31,
2015 2014
Net cash provided by operating activities $237 $113
Capital expenditures, less proceeds from disposals (303) (248)
Other investing activities 2 1
Dividends paid on preference shares (1) (1)
Free cash flow ($65) ($135)
Footnotes
(1) Revenues from ongoing businesses are revenues from reportable segments and
Corporate & Other (which includes Reuters News) less eliminations. Other
Businesses (see note (2) below) are excluded.
(2) Other Businesses are businesses that have been or are expected to be
exited through sale or closure that did not qualify for discontinued operations
classification.
(3) Thomson Reuters defines adjusted EBITDA as underlying operating profit
excluding the related depreciation and amortization of computer software.
Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of revenues
from ongoing businesses.
(4) Underlying operating profit is operating profit from reportable segments
and Corporate & Other (includes Reuters News). Underlying operating profit
margin is the underlying operating profit expressed as a percentage of revenues
from ongoing businesses.
(5) The changes in revenues from ongoing businesses, adjusted EBITDA and
underlying operating profit and the related margins, and adjusted earnings per
share before currency (at constant currency or excluding the effects of
currency) are determined by converting the current and prior period's local
currency equivalent using the same exchange rates.
(6) Adjusted earnings and adjusted earnings per share include dividends
declared on preference shares and amortization of the 2013 tax charges
associated with the consolidation of technology and content assets but exclude
the pre-tax impacts of amortization of other identifiable intangible assets as
well as the post-tax impacts of fair value adjustments, other operating (gains)
and losses, certain impairment charges, the results of Other Businesses (see
note (2) above), other finance (income) costs, Thomson Reuters share of
post-tax (earnings) losses in equity method investments, discontinued
operations and other items affecting comparability. Adjusted earnings per share
is calculated using diluted weighted-average shares and does not represent
actual earnings or loss per share attributable to shareholders.
(7) Adjustment to reflect income taxes based on estimated full-year effective
tax rate. Reported earnings or loss for interim periods reflect income taxes
based on the estimated effective tax rates of each of the jurisdictions in
which Thomson Reuters operates. The adjustment reallocates estimated full-year
income taxes between interim periods, but has no effect on full-year income
taxes.
(8) Reflects amortization of the 2013 tax charges associated with the
consolidation of the ownership and management of technology and content assets.
For the non-IFRS measure, the majority of the charges are amortized over seven
years, the period over which the tax is expected to be paid.
(9) Free cash flow is net cash provided by operating activities less capital
expenditures, other investing activities and dividends paid on the company's
preference shares.
Thomson Reuters Corporation
Consolidated Income Statement
(millions of U.S. dollars, except per share data)
(unaudited)
Three Months Ended
March 31,
2015 2014
Revenues $3,044 $3,130
Operating expenses (2,188) (2,313)
Depreciation (95) (98)
Amortization of computer software (193) (194)
Amortization of other identifiable intangible assets (149) (163)
Other operating losses, net (12) (3)
Operating profit 407 359
Finance costs, net:
Net interest expense (105) (108)
Other finance income 42 28
Income before tax and equity method investments 344 279
Share of post-tax earnings in equity method investments 4 -
Tax (expense) benefit (28) 13
Net earnings $320 $292
Earnings attributable to:
Common shareholders 305 282
Non-controlling interests 15 10
Basic and diluted earnings per share $0.38 $0.34
Basic weighted-average common shares 794,193,780 817,922,935
Diluted weighted-average common shares 797,566,149 820,945,986
Thomson Reuters Corporation
Consolidated Statement of Financial Position
(millions of U.S. dollars)
(unaudited)
March 31, December 31,
2015 2014
Assets
Cash and cash equivalents $769 $1,018
Trade and other receivables 1,777 1,810
Other financial assets 263 161
Prepaid expenses and other current assets 707 657
Current assets 3,516 3,646
Computer hardware and other property, net 1,113 1,182
Computer software, net 1,496 1,529
Other identifiable intangible assets, net 6,875 7,124
Goodwill 16,044 16,403
Other financial assets 157 127
Other non-current assets 541 536
Deferred tax 47 50
Total assets $29,789 $30,597
Liabilities and equity
Liabilities
Current indebtedness $889 $534
Payables, accruals and provisions 1,918 2,443
Deferred revenue 1,359 1,355
Other financial liabilities 428 265
Current liabilities 4,594 4,597
Long-term indebtedness 7,446 7,576
Provisions and other non-current liabilities 2,203 2,171
Other financial liabilities 285 161
Deferred tax 1,367 1,433
Total liabilities 15,895 15,938
Equity
Capital 10,091 10,157
Retained earnings 6,867 7,168
Accumulated other comprehensive loss (3,554) (3,147)
Total shareholders' equity 13,404 14,178
Non-controlling interests 490 481
Total equity 13,894 14,659
Total liabilities and equity $29,789 $30,597
Thomson Reuters Corporation
Consolidated Statement of Cash Flow
(millions of U.S. dollars)
(unaudited)
Three Months Ended
March 31,
2015 2014
Cash provided by (used in):
Operating activities
Net earnings $320 $292
Adjustments for:
Depreciation 95 98
Amortization of computer software 193 194
Amortization of other identifiable intangible assets 149 163
Net gains on disposals of businesses and investments - 1
Deferred tax (27) (40)
Other (14) 34
Changes in working capital and other items (479) (629)
Net cash provided by operating activities 237 113
Investing activities
Acquisitions, net of cash acquired (8) -
Capital expenditures, less proceeds from disposals (303) (248)
Other investing activities 2 1
Net cash used in investing activities (309) (247)
Financing activities
Net borrowings under short-term loan facilities 400 -
Repurchases of common shares (348) (264)
Dividends paid on preference shares (1) (1)
Dividends paid on common shares (258) (262)
Other financing activities 41 4
Net cash used in financing activities (166) (523)
Decrease in cash and bank overdrafts (238) (657)
Translation adjustments (12) -
Cash and bank overdrafts at beginning of period 1,015 1,312
Cash and bank overdrafts at end of period $765 $655
Cash and bank overdrafts at end of period comprised of:
Cash and cash equivalents $769 $667
Bank overdrafts (4) (12)
$765 $655
SOURCE Thomson Reuters