Thomson
Reuters Reports First-Quarter 2016 Results
NEW YORK, April 26, 2016 -- Thomson Reuters (TSX / NYSE:
TRI) today reported results for the first quarter ended
March 31, 2016. The company also
re-affirmed its 2016 full-year outlook.
- Reported revenues declined 1%. Before currency, revenues grew
1%
- Excluding recoveries, revenues increased 2% (before
currency)
- Adjusted EBITDA grew 2% to $748
million with a margin of 26.8% vs. 26.0% in the prior-year
period. Currency had a 70 basis point favorable impact on the
margin
- Underlying operating profit grew 8% to $498 million with a margin of 17.8% vs. 16.3% in
the prior-year period. Currency had a 70 basis point favorable
impact on the margin
- Adjusted earnings per share (EPS) increased 23% to $0.48, an increase of $0.09 per share. Currency had a $0.01 favorable impact on adjusted EPS
- Repurchased 11.7 million shares at a cost of $432 million in the first quarter
- Sale process for Intellectual Property & Science launched,
with a closing currently expected in the second half of 2016
"The year is off to a solid start," said Jim Smith, president and chief executive officer
of Thomson Reuters. "Today's results are in line with our
expectations and it is encouraging to see the continued positive
trajectory of our business, despite a somewhat volatile and
challenging period in external markets during the first
quarter."
Consolidated Financial
Highlights
(All amounts from continuing operations, except cash flow
measures) |
|
|
Three Months Ended
March 31,
(Millions of U.S. dollars, except EPS and margins) |
IFRS Financial
Measures |
2016 |
2015(1) |
Change |
|
Revenues |
$2,793 |
$2,821 |
-1% |
|
Operating profit |
$310 |
$362 |
-14% |
|
Diluted EPS |
$0.26 |
$0.33 |
-21% |
|
Cash flow from
operations (includes discontinued
operations) |
$458 |
$244 |
88% |
|
The decreases in operating profit and diluted EPS were primarily
due to unfavorable fair value adjustments associated with foreign
currency embedded derivatives in certain customer
contracts. |
|
|
|
|
|
Non-IFRS Financial Measures
(2) |
2016 |
2015(1) |
Change |
Change
Before
Currency |
Revenues |
$2,793 |
$2,821 |
-1% |
1% |
Adjusted EBITDA |
$748 |
$734 |
2% |
1% |
Adjusted EBITDA margin |
26.8% |
26.0% |
80bp |
10bp |
Underlying operating profit |
$498 |
$461 |
8% |
6% |
Underlying operating profit
margin |
17.8% |
16.3% |
150bp |
80bp |
Adjusted EPS |
$0.48 |
$0.39 |
23% |
21% |
Free cash flow (includes discontinued
operations) |
$223 |
($65) |
nm
(3) |
|
|
|
(1) |
Thomson Reuters is pursuing the sale of its
Intellectual Property & Science business. Prior-year period
amounts (except cash flow measures) have therefore been restated to
reflect the reclassification of the Intellectual Property &
Science business as a discontinued operation. |
(2) |
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. |
(3) |
nm - not meaningful. |
Highlights by Business Unit
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 declined 1% compared to the prior-year period.
However, revenues grew approximately 2% before the impact of lower
recoveries revenues and commercial pricing adjustments.
- Recurring revenues (77% of the segment's revenues in the
quarter) increased 1%, benefitting from higher data feeds and risk
revenues as well as an annual price increase, which more than
offset lower revenues resulting from the price adjustments referred
to above.
- Transactions revenues (14% of the segment's revenues in the
quarter) decreased 1% due to lower foreign exchange volumes.
- Low-margin recoveries revenues (9% of the segment's revenues in
the quarter) were down 13% as some third-party partners continue to
move to direct billing with their customers.
- As previously disclosed, Financial & Risk's recoveries
revenues are expected to decline approximately $100 million in 2016. Recoveries represent
revenues for content or services provided by third parties and
distributed through Financial & Risk's platform. This projected
reduction in recoveries revenue has no impact on EBITDA or
operating profit.
- Net sales were again positive overall and were positive in all
regions, except for EMEA. This marked the eighth consecutive
quarter of positive net sales.
- By geography, revenues in Asia
were up 3% and the Americas up 1%, while revenues in Europe, Middle
East and Africa (EMEA) were
down 3%.
- EBITDA increased 9% and the margin increased 320 basis points
to 29.0% compared to 25.8% in the prior-year period. Excluding the
impact of currency, the margin increased 260 basis points. The
improving EBITDA margin reflected savings related to efficiency
initiatives and platform closures completed in 2015.
- Operating profit increased 22% and the margin increased 400
basis points to 19.5% compared to 15.5% in the prior-year period.
Excluding the impact of currency, the margin increased 380 basis
points. The operating profit margin improvement reflected the same
factors that impacted EBITDA.
Legal
- Revenues increased 2%. Excluding US print, revenues grew
3%.
- Solutions businesses (44% of the segment's revenues in the
quarter) grew 3%. Revenue growth was driven by Legal Managed
Services (formerly Pangea3) and businesses in the United Kingdom/Ireland (UKI) and Latin America. Findlaw revenues declined
primarily due to lower transaction revenues.
- US online legal information (42% of the segment's revenues in
the quarter) grew 2%, reflecting growth for the fifth consecutive
quarter.
- US print (14% of the segment's revenues in the quarter)
declined 3%.
- EBITDA increased 4% and the margin increased 160 basis points
to 36.3% compared to 34.7% in the prior-year period. Excluding the
impact of currency, the margin increased 40 basis points.
- Operating profit increased 9% and the margin increased 240
basis points to 29.0% compared to 26.6% in the prior-year period.
Excluding the impact of currency, the margin increased 120 basis
points.
Tax & Accounting
- Revenues increased 8% driven by the Corporate and Professional
businesses, partially offset by a decline in the Government
business. Recurring revenues (82% of the segment's revenues in the
quarter) were up 11%.
- EBITDA decreased 10% and the margin decreased 450 basis points
to 29.3% compared to 33.8% in the prior-year period primarily due
to severance charges, growth investments and the benefit of several
one-time items in the first quarter of 2015. Excluding the impact
of currency, the margin declined 580 basis points.
- Operating profit decreased 15% and the margin decreased 500
basis points to 21.3% compared to 26.3% in the prior-year period.
Excluding the impact of currency, the margin was down 620 basis
points for the same reasons that drove EBITDA margin
performance.
- 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.
Corporate & Other (Including
Reuters News)
- Reuters News revenues were $75
million, up $1 million from
the prior-year period.
- Corporate & Other costs were $118
million compared to $97
million in the prior-year period. The increase was largely
comprised of costs related to the company's transformation
program.
Discontinued Operations – Intellectual
Property & Science
- The company's Intellectual Property & Science business,
which is currently expected to be sold in the second half of 2016,
has been classified as a discontinued operation for 2016 reporting
purposes. In the first quarter of 2016, Intellectual Property &
Science's revenues increased 4%.
2016 Business Outlook (Before
Currency)
Thomson Reuters today re-affirmed its full-year business outlook
for 2016 which was previously communicated in February 2016. The company's 2016 Outlook assumes
constant currency rates compared to 2015 and all metrics below
(except for free cash flow) exclude the Intellectual Property &
Science business, which has been classified as a discontinued
operation for 2016 reporting purposes. The 2016 Outlook is
based on the expected performance of the company's remaining
businesses and does not factor in the impact of any other
acquisitions or divestitures that may occur during the year.
The company expects:
- Low single-digit revenue growth
- 2% to 3% revenue growth excluding Financial & Risk's
recoveries revenues, which are low margin revenues and are expected
to decline as partners move to direct billing with their
customers
- Adjusted EBITDA margin to range between 27.3% and 28.3%
- Comparable 2015 EBITDA margin (excluding Intellectual
Property & Science business) was 27.3%
- Underlying operating profit margin to range between 18.4% and
19.4%
- Comparable 2015 underlying operating profit margin
(excluding Intellectual Property & Science business) was
18.1%
- Free cash flow to range between $1.7 billion and $1.9
billion in 2016
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 2016, the Thomson
Reuters board of directors approved a $0.02 per share annualized increase in the
dividend to $1.36 per common share. A
quarterly dividend of $0.34 per share
is payable on June 15, 2016 to common
shareholders of record as of May 19,
2016.
In the first quarter of 2016, the company repurchased
approximately 11.7 million shares at a cost of approximately
$432 million. Approximately
$260 million of these repurchases
were part of the $1.5 billion buyback
program announced in February
2016.
Thomson Reuters
Thomson Reuters is the world's leading source of news and
information for professional markets. Our customers rely on us to
deliver the intelligence, technology and expertise they need to
find trusted answers. The business has operated in more than 100
countries for more than 100 years. Thomson Reuters shares are
listed on the Toronto and New York
Stock Exchanges (symbol: TRI). For more information, visit
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 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 "2016 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
2016. 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 2016 Business Outlook
is based on various external and internal assumptions. Economic and
market assumptions include, but are not limited to, GDP growth in
most of the countries where Thomson Reuters operates and a
continued increase in the number of professionals around the world
and their demand for high quality information and workflow
solutions. Internal financial and operational assumptions include,
but are not limited to, the successful execution of sales
initiatives, ongoing product release programs, our globalization
strategy and other growth and efficiency initiatives. The 2016
Business Outlook also assumes that the company's Intellectual
Property & Science business will be sold during the year.
The timing for repurchases under the
company's $1.5 billion buyback
program will depend on the timing for the sale of its Intellectual
Property & Science business in addition to other factors, such
as market conditions, share price and opportunities to invest
capital for growth. There is no assurance that a transaction
involving all or part of the company's Intellectual Property &
Science business will be completed.
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 |
Senior Vice President, Corporate Affairs |
Senior Vice President, Investor Relations |
+1 646 223 5285 |
+1 646 223 5288 |
david.crundwell@tr.com |
frank.golden@tr.com |
Thomson Reuters will webcast a discussion of its
first-quarter 2016 results today beginning at 8:30 a.m. Eastern Time (ET). You can
access the webcast by visiting the "Investor Relations" section
of http://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, except for margins)
(unaudited) |
|
|
|
Three Months Ended |
|
|
|
|
March 31, |
|
Change |
|
|
|
2016 |
2015(1) |
|
Total |
Foreign
Currency (4) |
Before
Currency (4) |
|
Revenues |
|
|
|
|
|
|
|
|
Financial & Risk |
|
$1,509 |
$1,552 |
|
-3% |
-2% |
-1% |
|
Legal |
|
822 |
824 |
|
0% |
-2% |
2% |
|
Tax & Accounting |
|
389 |
373 |
|
4% |
-4% |
8% |
|
Corporate & Other (includes
Reuters News) |
|
75 |
74 |
|
1% |
-3% |
4% |
|
Eliminations |
|
(2) |
(2) |
|
|
|
|
|
Revenues |
|
$2,793 |
$2,821 |
|
-1% |
-2% |
1% |
|
|
|
|
|
|
|
|
|
|
|
|
Margin |
Adjusted
EBITDA(2) |
|
|
|
|
Change |
2016 |
2015 |
Change |
Financial & Risk |
|
$437 |
$401 |
|
9% |
29.0% |
25.8% |
320bp |
Legal |
|
298 |
286 |
|
4% |
36.3% |
34.7% |
160bp |
Tax & Accounting |
|
114 |
126 |
|
-10% |
29.3% |
33.8% |
-450bp |
Corporate & Other (includes
Reuters News) |
|
(101) |
(79) |
|
|
|
|
|
Adjusted EBITDA |
|
$748 |
$734 |
|
2% |
26.8% |
26.0% |
80bp |
|
|
|
|
|
|
|
|
|
Underlying Operating Profit
(3) |
|
|
|
|
|
|
|
|
Financial & Risk |
|
$295 |
$241 |
|
22% |
19.5% |
15.5% |
400bp |
Legal |
|
238 |
219 |
|
9% |
29.0% |
26.6% |
240bp |
Tax & Accounting |
|
83 |
98 |
|
-15% |
21.3% |
26.3% |
-500bp |
Corporate & Other (includes
Reuters News) |
|
(118) |
(97) |
|
|
|
|
|
Underlying operating
profit |
|
$498 |
$461 |
|
8% |
17.8% |
16.3% |
150bp |
|
|
|
Thomson Reuters
Corporation
Reconciliation of Operating Profit to Adjusted EBITDA
(2)
(millions of U.S. dollars)
(unaudited) |
|
|
Three Months
Ended |
|
|
March 31, |
|
|
2016 |
2015(1) |
Change |
|
|
|
|
Operating profit |
$310 |
$362 |
-14% |
Adjustments to remove: |
|
|
|
Amortization of other identifiable intangible
assets |
128 |
140 |
|
Fair value adjustments |
64 |
(53) |
|
Other operating (gains) losses, net |
(4) |
12 |
|
Underlying operating profit |
$498 |
$461 |
8% |
Remove: depreciation and amortization of computer
software |
250 |
273 |
|
Adjusted EBITDA |
$748 |
$734 |
2% |
|
|
|
|
Underlying operating profit margin
(3) |
17.8% |
16.3% |
150bp |
Adjusted EBITDA margin (2) |
26.8% |
26.0% |
80bp |
Thomson Reuters
Corporation
Reconciliation of Earnings from Continuing Operations to
Adjusted EBITDA (2)
(millions of U.S. dollars)
(unaudited) |
|
|
Three Months
Ended |
|
|
March 31, |
|
|
2016 |
2015(1) |
Change |
|
|
|
|
Earnings from continuing operations |
$210 |
$280 |
-25% |
Adjustments to remove: |
|
|
|
Tax (benefit) expense |
(26) |
25 |
|
Other finance costs (income) |
34 |
(44) |
|
Net interest expense |
93 |
105 |
|
Amortization of other identifiable intangible
assets |
128 |
140 |
|
Amortization of computer software |
169 |
180 |
|
Depreciation |
81 |
93 |
|
EBITDA |
$689 |
$779 |
|
Adjustments to remove: |
|
|
|
Share of post-tax earnings in equity method
investments |
(1) |
(4) |
|
Other operating (gains) losses, net |
(4) |
12 |
|
Fair value adjustments |
64 |
(53) |
|
Adjusted EBITDA |
$748 |
$734 |
2% |
|
|
|
Thomson Reuters
Corporation
Reconciliation of Underlying Operating Profit (3) to
Adjusted EBITDA (2) by Business Segment
(millions of U.S. dollars)
(unaudited) |
|
|
Three Months
Ended
March 31, 2016 |
|
Three Months
Ended
March 31, 2015(1) |
|
Underlying
Operating Profit |
Add:
Depreciation
and
Amortization
of Computer
Software |
Adjusted
EBITDA |
|
Underlying
Operating Profit |
Add:
Depreciation and Amortization of Computer Software |
Adjusted
EBITDA |
|
|
|
|
|
|
|
|
Financial & Risk |
$295 |
$142 |
$437 |
|
$241 |
$160 |
$401 |
Legal |
238 |
60 |
298 |
|
219 |
67 |
286 |
Tax & Accounting |
83 |
31 |
114 |
|
98 |
28 |
126 |
Corporate & Other (includes
Reuters News) |
(118) |
17 |
(101) |
|
(97) |
18 |
(79) |
|
$498 |
$250 |
$748 |
|
$461 |
$273 |
$734 |
Thomson Reuters Corporation
Reconciliation of Changes in Revenues, Adjusted EBITDA
(4), Underlying Operating Profit (4) and the
Related Margins, and
Adjusted Earnings Per Share (adjusted EPS) (4) Excluding
the Effects of Foreign Currency
(millions of U.S. dollars, except for per share amounts, and
margins)
(unaudited) |
|
|
|
Three Months
Ended |
|
|
|
|
March 31, |
|
Change |
|
|
2016 |
2015(1) |
|
Total |
Foreign
Currency |
Before
Currency |
Revenues |
|
$2,793 |
$2,821 |
|
-1% |
-2% |
1% |
Adjusted EBITDA |
|
$748 |
$734 |
|
2% |
1% |
1% |
Adjusted EBITDA margin |
|
26.8% |
26.0% |
|
80bp |
70bp |
10bp |
Underlying operating profit |
|
$498 |
$461 |
|
8% |
2% |
6% |
Underlying operating profit margin |
|
17.8% |
16.3% |
|
150bp |
70bp |
80bp |
Adjusted EPS |
|
$0.48 |
$0.39 |
|
23% |
2% |
21% |
|
|
|
Thomson Reuters
Corporation
Reconciliation of Earnings Attributable to Common Shareholders
to Adjusted Earnings (5)
(millions of U.S. dollars, except for share and per share data)
(unaudited) |
|
|
Three Months
Ended |
|
March 31, |
|
2016 |
2015(1) |
Earnings attributable to common
shareholders |
$262 |
$305 |
Adjustments to remove: |
|
|
Fair value adjustments |
64 |
(53) |
Other operating (gains) losses,
net |
(4) |
12 |
Other finance costs (income) |
34 |
(44) |
Share of post-tax earnings in equity
method investments |
(1) |
(4) |
Tax on above items |
(25) |
14 |
Tax items impacting comparability |
(7) |
(6) |
Amortization of other identifiable
intangible assets |
128 |
140 |
Earnings from discontinued operations,
net of tax |
(62) |
(40) |
Interim period effective tax rate
normalization (6) |
(5) |
1 |
Tax charge amortization
(7) |
(16) |
(16) |
Dividends declared on preference
shares |
(1) |
(1) |
Adjusted earnings |
$367 |
$308 |
Adjusted earnings per share |
$0.48 |
$0.39 |
|
|
|
Diluted weighted-average common shares (millions) |
762.2 |
797.6 |
Thomson Reuters
Corporation
Reconciliation of Net Cash Provided by Operating Activities to
Free Cash Flow (8)
(millions of U.S. dollars)
(unaudited) |
|
|
Three Months
Ended |
|
March 31, |
|
2016 |
2015(1) |
Net cash provided by operating activities |
$458 |
$244 |
Capital expenditures, less proceeds from
disposals |
(233) |
(290) |
Other investing activities |
19 |
2 |
Dividends paid on preference shares |
(1) |
(1) |
Dividends paid to non-controlling interests |
(9) |
(7) |
Capital expenditures from discontinued operations |
(11) |
(13) |
Free cash flow |
$223 |
($65) |
|
|
|
Footnotes |
(1) |
Prior-year period amounts have been restated to
reflect the reclassification of the Intellectual Property &
Science segment as a discontinued operation. |
(2) |
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. |
(3) |
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. |
(4) |
The changes in revenues, 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-year period's local currency equivalent using the
same exchange rates. |
(5) |
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, 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. |
(6) |
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. |
(7) |
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. |
(8) |
Free cash flow (includes free cash flow from
continuing and discontinued operations) is net cash provided by
operating activities, and other investing activities less capital
expenditures, dividends paid on the company's preference shares,
and dividends paid to non-controlling interests. |
Thomson Reuters
Corporation
Consolidated Income Statement
(millions of U.S. dollars, except per share data)
(unaudited) |
|
|
Three Months
Ended |
|
March 31, |
|
2016 |
2015(1) |
CONTINUING OPERATIONS |
|
|
Revenues |
$2,793 |
$2,821 |
Operating expenses |
(2,109) |
(2,034) |
Depreciation |
(81) |
(93) |
Amortization of computer software |
(169) |
(180) |
Amortization of other identifiable intangible
assets |
(128) |
(140) |
Other operating gains (losses), net |
4 |
(12) |
Operating profit |
310 |
362 |
Finance costs, net: |
|
|
Net interest expense |
(93) |
(105) |
Other finance (costs) income |
(34) |
44 |
Income before tax and equity method investments |
183 |
301 |
Share of post-tax earnings in equity method
investments |
1 |
4 |
Tax benefit (expense) |
26 |
(25) |
Earnings from continuing operations |
210 |
280 |
Earnings from discontinued operations, net of tax |
62 |
40 |
Net earnings |
$272 |
$320 |
|
|
|
Earnings attributable to: |
|
|
Common shareholders |
262 |
305 |
Non-controlling interests |
10 |
15 |
|
|
|
Earnings per share: |
|
|
Basic and diluted earnings per share: |
|
|
From continuing operations |
$0.26 |
$0.33 |
From discontinued operations |
0.08 |
0.05 |
Basic and diluted earnings per share |
$0.34 |
$0.38 |
|
|
|
Basic weighted-average common shares |
760,727,773 |
794,193,780 |
Diluted weighted-average common shares |
762,216,127 |
797,566,149 |
|
|
|
(1) Prior-year period amounts have been
restated to reflect the reclassification of the Intellectual
Property & Science business as a discontinued operation. |
Thomson Reuters
Corporation
Consolidated Statement of Financial Position
(millions of U.S. dollars)
(unaudited) |
|
|
March 31, |
|
December 31, |
|
2016 |
|
2015 |
Assets |
|
|
|
Cash and cash equivalents |
$869 |
|
$926 |
Trade and other receivables |
1,468 |
|
1,755 |
Other financial assets |
110 |
|
176 |
Prepaid expenses and other current assets |
671 |
|
683 |
Current assets excluding assets held for sale |
3,118 |
|
3,540 |
Assets held for sale |
1,723 |
|
- |
Current assets |
4,841 |
|
3,540 |
|
|
|
|
Computer hardware and other property, net |
1,019 |
|
1,067 |
Computer software, net |
1,391 |
|
1,486 |
Other identifiable intangible assets, net |
6,140 |
|
6,417 |
Goodwill |
14,957 |
|
15,878 |
Other financial assets |
101 |
|
116 |
Other non-current assets |
552 |
|
544 |
Deferred tax |
47 |
|
47 |
Total assets |
$29,048 |
|
$29,095 |
|
|
|
|
Liabilities and equity |
|
|
|
Liabilities |
|
|
|
Current indebtedness |
$2,543 |
|
$1,555 |
Payables, accruals and provisions |
1,908 |
|
2,278 |
Deferred revenue |
997 |
|
1,319 |
Other financial liabilities |
166 |
|
238 |
Current liabilities excluding liabilities associated
with assets held for sale |
5,614 |
|
5,390 |
Liabilities associated with assets held for sale |
607 |
|
- |
Current liabilities |
6,221 |
|
5,390 |
|
|
|
|
Long-term indebtedness |
6,379 |
|
6,829 |
Provisions and other non-current liabilities |
2,196 |
|
2,124 |
Other financial liabilities |
318 |
|
387 |
Deferred tax |
1,098 |
|
1,265 |
Total liabilities |
16,212 |
|
15,995 |
|
|
|
|
Equity |
|
|
|
Capital |
9,772 |
|
9,852 |
Retained earnings |
6,168 |
|
6,458 |
Accumulated other comprehensive loss |
(3,594) |
|
(3,697) |
Total shareholders' equity |
12,346 |
|
12,613 |
Non-controlling interests |
490 |
|
487 |
Total equity |
12,836 |
|
13,100 |
Total liabilities and equity |
$29,048 |
|
$29,095 |
Thomson Reuters
Corporation
Consolidated Statement of Cash Flow
(millions of U.S. dollars)
(unaudited) |
|
|
|
Three Months
Ended
March 31, |
|
2016 |
2015(1) |
Cash provided by (used in): |
|
|
Operating activities |
|
|
Earnings from continuing operations |
$210 |
$280 |
Adjustments for: |
|
|
Depreciation |
81 |
93 |
Amortization of computer software |
169 |
180 |
Amortization of other identifiable intangible
assets |
128 |
140 |
Net gains on disposals of businesses and
investments |
(1) |
- |
Deferred tax |
(58) |
(25) |
Other |
178 |
(19) |
Changes in working capital and other items |
(371) |
(525) |
Operating cash flows from continuing operations |
336 |
124 |
Operating cash flows from discontinued operations |
122 |
120 |
Net cash provided by operating activities |
458 |
244 |
|
|
|
Investing activities |
|
|
Acquisitions, net of cash acquired |
(46) |
(8) |
Proceeds from disposals of businesses and investments,
net of taxes paid |
2 |
- |
Capital expenditures, less proceeds from
disposals |
(233) |
(290) |
Other investing activities |
19 |
2 |
Investing cash flows from continuing operations |
(258) |
(296) |
Investing cash flows from discontinued operations |
(11) |
(13) |
Net cash used in investing activities |
(269) |
(309) |
|
|
|
Financing activities |
|
|
Repayments of debt |
(3) |
- |
Net borrowings under short-term loan facilities |
442 |
400 |
Repurchases of common shares |
(432) |
(348) |
Dividends paid on preference shares |
(1) |
(1) |
Dividends paid on common shares |
(249) |
(258) |
Dividends paid to non-controlling interests |
(9) |
(7) |
Other financing activities |
4 |
41 |
Net cash used in financing activities |
(248) |
(173) |
Decrease in cash and bank overdrafts |
(59) |
(238) |
Translation adjustments |
4 |
(12) |
Cash and bank overdrafts at beginning of period |
922 |
1,015 |
Cash and bank overdrafts at end of period |
$867 |
$765 |
|
|
|
Cash and bank overdrafts at end of period comprised
of: |
|
|
Cash and cash equivalents |
$869 |
$769 |
Bank overdrafts |
(2) |
(4) |
|
$867 |
$765 |
|
|
|
(1) Prior-year period
amounts have been restated to reflect the reclassification of the
Intellectual
Property & Science business as a discontinued operation. |
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SOURCE Thomson Reuters