- ASV increased $36.9 million to $1.058 billion, up 9.2%
organically
- Diluted EPS rose 13.0% to $1.48
- User count grew to 62,205, reflecting 3,210 net new users;
FactSet's highest ever quarterly increase
- FactSet agreed to acquire Portware, LLC, a leading provider of
multi-asset trade automation solutions
FactSet Research Systems Inc. (NYSE:FDS) (NASDAQ:FDS), a leading
provider of integrated global financial information and analytical
applications to the investment community, today announced its
results for the fourth quarter of fiscal 2015.
For the quarter ended August 31, 2015, revenues advanced
to $261.8 million. Included in this total was $2.4 million from
acquisitions completed since August 2014. Operating income was
$85.7 million compared to $79.4 million in the year ago quarter.
Net income was $62.2 million versus $55.4 million a year ago.
Diluted earnings per share were $1.48 compared to $1.31 in the same
period of fiscal 2014.
Adjusted operating income increased 11.7% over the prior
year fourth quarter. Current year adjusted operating income
excludes $3.0 million of pre-tax charges related primarily to the
vesting of performance-based equity instruments. Adjusted net
income advanced 11.9% over the prior year and excludes the
after-tax expense of $2.1 million from the vesting of
performance-based equity instruments and income tax benefits of
$2.3 million from finalizing prior year tax returns and other
discrete items.
Adjusted diluted EPS rose 13.0% to $1.48 and excludes
income tax benefits of $0.05 and the $0.05 charge from vesting
performance-based equity instruments.
A reconciliation between GAAP and adjusted financial measures is
presented on page 10 of this press release.
Consolidated
Statements of Income |
(Condensed and Unaudited) |
|
Three Months
Ended August 31, |
(In thousands, except per share data) |
2015 |
2014 |
Change |
Revenues |
$261,779 |
$238,664 |
9.7% |
Adjusted Operating income |
$88,663 |
$79,386 |
11.7% |
Adjusted Net income |
$62,001 |
$55,407 |
11.9% |
Adjusted Diluted earnings per share |
$1.48 |
$1.31 |
13.0% |
Diluted weighted average shares |
41,995 |
42,386 |
|
|
|
|
|
"Fiscal 2015 was our 35th consecutive year of revenue growth and
our 19th consecutive year of positive earnings growth as a public
company," said Phil Snow, CEO. "Our ASV growth rate accelerated to
9.2%, our highest rate of growth in over three years, while our
13.0% EPS increase represented our 21st consecutive quarter of
double-digit adjusted EPS growth. I am also pleased by the record
quarterly increase in users during our recently completed fourth
quarter and excited about Portware joining FactSet. Strategically,
Portware will act as a platform for us to increase value to global
asset managers by expanding our capabilities to include multi-asset
trade automation."
Annual Subscription Value ("ASV")
ASV was $1.058 billion at August 31, 2015, up 9.2% organically
over the prior year. Excluding the effects of foreign currency, ASV
increased $36.9 million over the last three months. ASV at any
given point in time represents the forward-looking revenues for the
next 12 months from all services currently being supplied to
clients. Buy-side clients account for 82.5% of ASV and the
remainder is derived from sell-side firms that perform Mergers
& Acquisitions ("M&A") advisory work, capital markets
services and equity research. The buy-side and sell-side ASV growth
rates were 9.0% and 9.8%, respectively. Supplementary tables
covering buy-side and sell-side ASV growth rates are presented on
page 10 of this press release.
Financial Highlights – Fourth Quarter of Fiscal
2015
- ASV from U.S. operations was $715 million and $343 million was
related to international operations.
- U.S. revenues were $176.5 million. Excluding incremental
revenue from acquisitions completed in the past 12 months, the U.S.
growth rate was 8.0%.
- Non-U.S. revenues rose to $85.3 million. Excluding the impact
of foreign currency, the international growth rate was 11.6%.
- Adjusted operating margin was 33.9%, compared to an operating
margin of 33.3% a year ago. The current year adjusted operating
margin excludes $3.0 million of incremental compensation expense
from the vesting of performance-based equity instruments.
- The effective tax rate for the fourth quarter was 27.7%, as
compared to 30.4% a year ago. Excluding income tax benefits from
finalizing prior year tax returns and other discrete items, the
current year annual effective tax rate was 30.3% compared to 30.4%
in the prior period.
- Quarterly free cash flow was $73.3 million, an increase of
12.3% over the prior year.
Operational Highlights – Fourth Quarter of Fiscal
2015
- Users of the FactSet workstation rose by a quarterly record of
3,210 professionals.
- Annual client retention was greater than 95% of ASV. When
expressed as a percentage of clients, annual retention was 94%, up
from 93% in the prior year fourth quarter.
- Client count rose by 61 and totaled 2,976 at August 31,
2015.
- Employee count was 7,360 at August 31, 2015, up 10.9% over last
year.
- Capital expenditures were $10.3 million and primarily related
to purchases of computer equipment.
- A regular quarterly dividend of $18.2 million or $0.44 per
share was paid on September 15, 2015, to common stockholders of
record as of August 31, 2015.
- The Company repurchased 479,383 shares for $78.5 million during
the quarter. At August 31, 2015, $134.2 million remained authorized
for further repurchases.
- Common shares outstanding were 41.3 million at August 31,
2015.
- The Company held its European Symposium in June 2015, with 100
industry professionals from 59 firms in attendance.
- FactSet was awarded the Best Research and Analytics tool at the
2015 Systems in the City Awards in July 2015.
- FactSet was named as one of the "100 Best Workplaces for
Millennials" in the U.S. by Great Place to Work® and Fortune.
Full Year Fiscal 2015 Highlights
- ASV rose $88.4 million to $1.058 billion, up 9.2%
organically.
- Revenues were $1.007 billion, an organic increase of
8.9%.
- Diluted EPS rose 16.1% to $5.71.
- Free cash flow grew by 13.5% and totaled $280.8
million.
- Users grew 13.9% to 62,205 professionals.
- Client count was 2,976, up 6.7%, excluding 50 new clients
acquired from the acquisition of Code Red.
- FactSet returned $322.8 million to stockholders in the form of
share repurchases and dividends.
- The Company completed the strategic acquisition of Code Red in
February 2015.
Portware Acquisition
On September 21, 2015, FactSet entered into a definitive
purchase agreement to acquire all the issued and outstanding
membership interests of Portware, LLC for cash consideration of
$265 million, partially offset by expected income tax benefits with
an estimated present value of $50 million as a result of the
transaction. Based in New York City, Portware is a privately held
company and a leading provider of multi-asset trade automation
solutions for mega and large global asset managers. Portware
combines artificial intelligence and quantitative analytics with
advanced visualization, algo management, transaction cost analysis
and commission optimization tools for real-time decision support.
The platform includes pre-, intra- and post-trade analytics, smart
order routing and customizable execution strategies that empower
traders with control to optimize trade execution and maximize
alpha. Global asset managers favor Portware's ability to automate
their most complex workflows and strategies across multiple asset
classes, including equities, FX, futures, options, fixed income and
OTC instruments.
Portware's current client list includes approximately 60
well-established global asset managers with total ASV of $41
million. The company currently has 174 employees located in its New
York, London, Hong Kong, and Hyderabad, India offices. The
transaction was approved by the Board of Directors of FactSet on
September 21, 2015, and is expected to close before the end of the
2015 calendar year, subject to regulatory review by FINRA.
In the first full quarter after close, the acquisition is
expected to be $0.03 dilutive to GAAP diluted EPS. Excluding
amortization of acquired intangible assets, the acquisition is
expected to be $0.02 accretive. FactSet forecasts Portware to be
accretive to quarterly GAAP diluted EPS within 12 months after
closing.
FactSet plans to borrow $265 million under its revolving credit
facility in order to finance the acquisition. Upon closing of
the acquisition, FactSet will carry $300 million in total debt
under the revolving credit facility with Bank of America at an
interest rate of one-month LIBOR plus 0.75%. The credit facility
has a three-year term and may be expanded up to $400 million.
Please refer to FactSet's press release separately issued today
for further information about the Portware acquisition.
Election of new Director, Laurie Siegel
On September 21, 2015, the Board of Directors of FactSet elected
a new director, Laurie Siegel. She will stand for election by a
vote of stockholders at the Company's 2015 Annual Meeting of
Stockholders. Ms. Siegel has not yet been appointed to serve on any
of the committees of the Board.
Ms. Siegel, age 59, is a business and human resources consultant
who currently serves as a member of the board of directors of
CenturyLink, Inc., a global broadband telecommunications and data
hosting company, and of Volt Information Sciences, a provider of
global infrastructure solutions in technology, information services
and staffing acquisition. She retired in September 2012 from Tyco
International Ltd., a diversified manufacturing and service
company, where she served as Senior Vice President of Human
Resources and Internal Communications since 2003. From 1994 to
2002, she held various positions with Honeywell International Inc.,
including Vice President of Human Resources – Specialty Materials.
She was previously a director of global compensation at Avon
Products and a principal of Strategic Compensation Associates. Ms.
Siegel has an MBA and a Master's degree in City and Regional
Planning, both from Harvard University. She completed her
Bachelor's degree at the University of Michigan.
Phil Hadley, Executive Chairman of FactSet said, "We are pleased
to welcome Laurie Siegel to our Board of Directors. Laurie brings
to our Board a wealth of experience in compensation and talent
management, which we hope to leverage to enhance our own
development processes. She has seen how successful, large, global
human resource practices enable a company to stay ahead of the
competition."
Business Outlook
The following forward-looking statements reflect FactSet's
expectations as of today's date. Given the number of 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.
First Quarter Fiscal 2016 Expectations (the expectations below
do not include results from the expected acquisition of
Portware)
- Revenues are expected to range between $265 million and $269
million.
- Operating margin is expected to range between 33.0% and
34.0%.
- The annual effective tax rate is expected to range between
31.0% and 32.0% and assumes the U.S. Federal R&D tax credit
will not be re-enacted by the end of the first quarter of fiscal
2016.
- GAAP diluted EPS should range between $1.46 and $1.48. The
lapse in the U.S. Federal R&D tax credit on December 31, 2014,
reduced each end of the GAAP diluted EPS range by $0.02 compared to
the recently completed fourth quarter.
- If the U.S. Federal R&D tax credit is re-enacted by
November 30, 2015, diluted EPS would range between $1.51 and $1.53.
FactSet would also recognize an income tax benefit of $0.14 per
share if the R&D tax credit could be retroactively applied to
previous periods.
Conference Call
The Company will host a conference call today, September 22,
2015 at 11:00 a.m. (Eastern Time) to review the fourth quarter
fiscal 2015 earnings release. To listen, please visit the investor
relations section of the Company's website at www.factset.com.
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.
About Adjusted Financial Measures
Financial measures in accordance with U.S. generally
accepted accounting principles ("GAAP") including operating income,
net income and diluted earnings per share have been adjusted.
Adjusted operating income during the current year fourth quarter
excludes $3.0 million of pre-tax charges related primarily to the
vesting of performance-based equity instruments. Adjusted net
income during the current year fourth quarter excludes the
after-tax expense of $2.1 million from vesting performance-based
equity instruments and income tax benefits of $2.3 million from
finalizing prior year tax returns and other discrete items. Fiscal
2015 fourth quarter adjusted diluted EPS of $1.48 excludes $0.05 in
income tax benefits and $0.05 from vesting performance-based equity
instruments. FactSet uses these adjusted financial measures, both
in presenting its results to stockholders and the investment
community, and in its internal evaluation and management of the
business. The Company believes that these adjusted financial
measures and the information they provide are useful to investors
because it permits investors to view the Company's performance
using the same tools that management uses to gauge progress in
achieving its goals. Investors may benefit from referring to these
adjusted financial measures in assessing the Company's performance
and when planning, forecasting and analyzing future periods and may
also facilitate comparisons to its historical performance. The
presentation of this financial information is not intended to be
considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP.
About Non-GAAP Free Cash Flow
The GAAP financial measure, cash flows provided by operating
activities, has been adjusted to report non-GAAP free cash flow
that includes the cash cost for taxes and changes in working
capital, less capital expenditures. Included in the recently
completed fourth quarter was $83.6 million of net cash provided by
operations and $10.3 million of capital expenditures. The
presentation of free cash flow is not intended to be considered in
isolation or as a substitute for the financial information prepared
and presented in accordance with GAAP. FactSet uses this financial
measure, both in presenting its results to stockholders and the
investment community, and in the Company's internal evaluation and
management of the business. Management believes that this financial
measure is useful to investors because it permits investors to view
the Company's performance using the same metric that management
uses to gauge progress in achieving its goals and is an indication
of cash flow that may be available to fund further investments in
future growth initiatives.
About FactSet
FactSet, a leading provider of financial information and
analytics, helps the world's best investment professionals
outperform. More than 62,000 users stay ahead of global market
trends, access extensive company and industry intelligence, and
monitor performance with FactSet's desktop analytics, mobile
applications, and comprehensive data feeds. The Company has been
included in FORTUNE's Top 100 Best Companies to Work For, the
United Kingdom's Great Places to Work and France's Best Workplaces.
FactSet is listed on the New York Stock Exchange and NASDAQ
(NYSE:FDS) (NASDAQ:FDS). Learn more at www.factset.com, and follow
us on Twitter: www.twitter.com/factset.
FactSet Research Systems
Inc. |
Consolidated Statements of Income
– Unaudited |
|
|
|
|
Three Months Ended August
31, |
Twelve Months Ended
August 31, |
(In thousands, except per share data) |
2015 |
2014 |
2015 |
2014 |
|
|
|
|
|
Revenues |
$261,779 |
$238,664 |
$1,006,768 |
$920,335 |
|
|
|
|
|
Operating expenses |
|
|
|
|
Cost of services |
107,595 |
92,521 |
405,339 |
353,686 |
Selling, general and
administrative |
68,531 |
66,757 |
269,511 |
264,430 |
Total operating expenses |
176,126 |
159,278 |
674,850 |
618,116 |
|
|
|
|
|
Operating income |
85,653 |
79,386 |
331,918 |
302,219 |
|
|
|
|
|
Other income, net |
391 |
227 |
1,836 |
1,245 |
Income before income taxes |
86,044 |
79,613 |
333,754 |
303,464 |
|
|
|
|
|
Provision for income taxes |
23,860 |
24,206 |
92,703 |
91,921 |
Net income |
$62,184 |
$55,407 |
$241,051 |
$211,543 |
|
|
|
|
|
Diluted earnings per common share |
$1.48 |
$1.31 |
$5.71 |
$4.92 |
|
|
|
|
|
Diluted weighted average common shares |
41,995 |
42,386 |
42,235 |
42,970 |
|
FactSet Research Systems
Inc. |
Consolidated Statements of
Comprehensive Income – Unaudited |
|
|
|
|
|
|
Three Months Ended August
31, |
Twelve Months Ended
August 31, |
(In thousands) |
2015 |
2014 |
2015 |
2014 |
|
|
|
|
|
Net income |
$62,184 |
$55,407 |
$241,051 |
$211,543 |
|
|
|
|
|
Other comprehensive (loss) income, net of
tax |
|
|
|
|
Net unrealized (loss) gain on
cash flow hedges* |
(579) |
(268) |
(868) |
5,357 |
Foreign currency translation
adjustments |
490 |
(4,304) |
(25,263) |
7,895 |
Other comprehensive (loss)
income |
(89) |
(4,572) |
(26,131) |
13,252 |
Comprehensive income |
$62,095 |
$50,835 |
$214,920 |
$224,795 |
|
|
|
|
|
* For the three
and twelve months ended August 31, 2015, the unrealized loss on
cash flow hedges were net of tax benefits of $340 and $512,
respectively. For the three and twelve months ended August 31,
2014, the unrealized (loss) gain on cash flow hedges was net tax
benefits of $159 and tax expense of $3,193, respectively. |
|
FactSet Research Systems
Inc. |
Consolidated Balance Sheets -
Unaudited |
|
August 31, |
August 31, |
(In thousands) |
2015 |
2014 |
|
|
|
ASSETS |
|
|
Cash and cash equivalents |
$158,914 |
$116,378 |
Investments |
23,497 |
20,008 |
Accounts receivable, net of
reserves |
95,064 |
90,354 |
Prepaid taxes |
4,808 |
6,532 |
Deferred taxes |
2,105 |
1,841 |
Prepaid expenses and other
current assets |
19,786 |
14,662 |
Total current assets |
304,174 |
249,775 |
Property, equipment, and
leasehold improvements, net |
59,264 |
57,641 |
Goodwill |
308,287 |
285,608 |
Intangible assets, net |
40,052 |
41,855 |
Deferred taxes |
20,599 |
22,377 |
Other assets |
4,295 |
5,956 |
TOTAL ASSETS |
$736,671 |
$663,212 |
|
|
|
LIABILITIES |
|
|
Accounts payable and accrued
expenses |
$33,880 |
$26,971 |
Accrued compensation |
44,916 |
42,481 |
Deferred fees |
38,488 |
36,504 |
Taxes payable |
3,755 |
5,036 |
Deferred taxes |
562 |
-- |
Dividends payable |
18,179 |
16,299 |
Total current liabilities |
139,780 |
127,291 |
Deferred taxes |
1,697 |
2,921 |
Taxes payable |
6,776 |
5,501 |
Long-term debt |
35,000 |
-- |
Deferred rent and other
non-current liabilities |
21,834 |
16,417 |
TOTAL LIABILITIES |
$205,087 |
$152,130 |
|
|
|
STOCKHOLDERS' EQUITY |
|
|
Common stock |
$503 |
$491 |
Additional paid-in capital |
542,355 |
413,754 |
Treasury stock, at cost |
(988,873) |
(734,746) |
Retained earnings |
1,021,651 |
849,504 |
Accumulated other comprehensive
loss |
(44,052) |
(17,921) |
TOTAL STOCKHOLDERS' EQUITY |
531,584 |
511,082 |
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
$736,671 |
$663,212 |
|
FactSet Research Systems
Inc. |
Consolidated Statements of Cash
Flows - Unaudited |
(In thousands) |
Twelve Months Ended
August 31, |
|
2015 |
2014 |
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
Net income |
$241,051 |
$211,543 |
Adjustments to reconcile net income to net
cash provided by operating activities |
|
|
Depreciation and
amortization |
31,349 |
34,435 |
Stock-based compensation
expense |
26,371 |
22,891 |
Deferred income taxes |
(969) |
(1,028) |
Gain on sale of assets |
(34) |
(62) |
Tax benefits from share-based
payment arrangements |
(28,948) |
(11,955) |
Changes in assets and
liabilities, net of effects of acquisitions |
|
|
Accounts receivable, net of
reserves |
(4,300) |
(13,299) |
Accounts payable and accrued
expenses |
8,123 |
(2,903) |
Accrued compensation |
3,516 |
1,953 |
Deferred fees |
53 |
3,594 |
Taxes payable, net of prepaid
taxes |
30,437 |
23,309 |
Prepaid expenses and other
assets |
(4,523) |
(1,535) |
Deferred rent and other
non-current liabilities |
4,322 |
(1,672) |
Other working capital accounts,
net |
(6) |
(248) |
Net cash provided by operating
activities |
306,442 |
265,023 |
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
Acquisition of businesses, net of cash
acquired |
(34,758) |
(46,873) |
Purchases of investments |
(24,264) |
(20,415) |
Proceeds from sales of investments |
19,827 |
14,323 |
Purchases of property, equipment and
leasehold improvements, net of proceeds from dispositions |
(25,682) |
(17,743) |
Net cash used in investing activities |
(64,877) |
(70,708) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
Dividend payments |
(66,551) |
(61,007) |
Repurchase of common stock |
(256,217) |
(279,829) |
Proceeds from debt |
35,000 |
-- |
Debt issuance costs |
(32) |
-- |
Proceeds from employee stock plans |
71,526 |
52,152 |
Tax benefits from share-based payment
arrangements |
28,948 |
11,955 |
Net cash used in financing activities |
(187,326) |
(276,729) |
|
|
|
Effect of exchange rate changes on cash and
cash equivalents |
(11,703) |
2,165 |
|
|
|
Net increase (decrease) in cash and cash
equivalents |
42,536 |
(80,249) |
|
|
|
Cash and cash equivalents at beginning of
period |
116,378 |
196,627 |
Cash and cash equivalents at end of
period |
$158,914 |
$116,378 |
Reconciliation of GAAP to Adjusted Financial
Measures
Financial measures in accordance with U.S. GAAP including
operating income, net income and diluted earnings per share have
been adjusted below. FactSet uses these adjusted financial
measures, both in presenting its results to stockholders and the
investment community, and in its internal evaluation and management
of the business. The Company believes that these adjusted financial
measures and the information they provide are useful to investors
because it permits investors to view the Company's performance
using the same tools that management uses to gauge progress in
achieving its goals. Adjusted measures may also facilitate
comparisons to FactSet's historical performance.
|
|
(Unaudited) |
Three Months
Ended August 31, |
(In thousands, except per share data) |
2015 |
2014 |
Change |
GAAP Operating income |
$85,653 |
$79,386 |
|
Vesting performance-based equity instruments
(a) |
3,010 |
-- |
|
Adjusted
Operating income |
$88,663 |
$79,386 |
11.7% |
|
|
|
|
GAAP Net income |
$62,184 |
$55,407 |
|
Vesting performance-based equity instruments
(a)(b) |
2,097 |
-- |
|
Income tax benefits (c) |
(2,280) |
-- |
|
Adjusted Net income |
$62,001 |
$55,407 |
11.9% |
|
|
|
|
Adjusted Diluted earnings per common
share |
$1.48 |
$1.31 |
13.0% |
Weighted average common shares
(Diluted) |
41,995 |
42,386 |
|
(a) GAAP operating income in the fourth quarter of fiscal
2015 was adjusted to exclude $3.0 million of pre-tax charges
related primarily to the vesting of performance-based equity
instruments. The vesting of performance-based equity instruments
increased stock-based compensation, net of tax, by $2.1 million,
and reduced diluted earnings per share by $0.05.
(b) For the purposes of calculating adjusted net income and
adjusted diluted earnings per share, the pre-tax stock-based
compensation charge of $2.1 million were taxed at the annual
effective tax rate of 30.3%.
(c) Current year GAAP net income was adjusted to exclude
$2.1 million of income tax benefits related to finalizing prior
year tax returns and other discrete items. GAAP diluted EPS was
adjusted to exclude $0.05 from these same income tax benefits.
Supplementary Schedules of Historical ASV by Client
Type
The following table presents the percentages and growth rates of
ASV by client type, excluding currency, and may be useful to
facilitate historical comparisons.
|
Q4'15 |
Q3'15 |
Q2'15 |
Q1'15 |
Q4'14 |
Q3'14 |
Q2'14 |
Q1'14 |
% of ASV from buy-side clients |
82.5% |
82.8% |
82.8% |
82.5% |
82.6% |
83.1% |
82.7% |
82.2% |
% of ASV from sell-side clients |
17.5% |
17.2% |
17.2% |
17.5% |
17.4% |
16.9% |
17.3% |
17.8% |
|
|
|
|
|
|
|
|
|
ASV Growth rate from buy-side clients |
9.0% |
8.5% |
8.7% |
8.9% |
8.5% |
8.0% |
6.4% |
6.2% |
ASV Growth rate from sell-side clients |
9.8% |
10.9% |
7.9% |
6.7% |
1.6% |
0.0% |
(0.5%) |
(2.7%) |
ASV Growth rate from all clients |
9.2% |
8.9% |
8.5% |
8.5% |
7.3% |
6.8% |
5.5% |
5.0% |
The following table presents the calculation of the
above-mentioned growth rates by client type for the fourth quarter
of fiscal 2015.
(In thousands) |
August
31, |
Q4 2015 |
|
2015 |
2014 |
ASV Growth Rate |
As reported ASV |
$ 1,057.8 |
$ 963.6 |
|
Less acquired ASV (a) |
(9.7) |
-- |
|
Currency impact (b) |
3.9 |
-- |
|
Organic ASV total |
$ 1,052.0 |
$ 963.6 |
9.2% |
Buy-side |
$ 867.9 |
$ 796.0 |
9.0% |
Sell-side |
$ 184.1 |
$ 167.6 |
9.8% |
(a) Acquired ASV from
acquisitions completed in the last 12 months.
(b) The negative impact from foreign
currency movements over the past 12 months was added back in order
to calculate total organic ASV. The foreign currency effect was
primarily from ASV billed in Japanese Yen, which was negatively
impacted by a decline in the Japanese Yen vs. the U.S. dollar.
Reconciliation of Non-GAAP Financial
Measures
Financial measures in accordance with U.S. GAAP including
operating income, net income and diluted earnings per share have
been adjusted below.
Three Months Ended August 31,
2015 |
|
|
|
|
|
|
|
|
|
(Condensed and Unaudited) |
GAAP |
Vesting Performance-based Equity
Instruments (b) |
Income Tax Benefits (c) |
Adjusted |
YoY % Change |
Stock-Based Compensation |
Amortization of Intangible
Assets |
Non-GAAP |
Operating Income |
$ 85,653 |
$ 3,010 |
|
$ 88,663 |
11.7% |
$ 9,260 |
$ 1,787 |
$ 99,710 |
Net Income (a) |
$ 62,184 |
$ 2,097 |
$(2,280) |
$ 62,001 |
11.9% |
$ 6,454 |
$ 1,246 |
$ 69,701 |
Diluted EPS |
$ 1.48 |
$ 0.05 |
$ (0.05) |
$ 1.48 |
13.0% |
$ 0.15 |
$ 0.03 |
$ 1.66 |
Weighted Average
Shares |
41,995 |
|
|
41,995 |
|
|
|
41,995 |
(a) For the purposes of calculating non-GAAP net income and
non-GAAP diluted EPS, stock-based compensation expense and the
amortization of intangible assets were taxed at the current year
annual effective tax rate of 30.3%.
(b) GAAP Operating Income excludes $3.0 million of pre-tax
charges related primarily to the vesting of performance-based
equity instruments. The vesting of performance-based equity
instruments increased stock-based compensation, net of tax, by $2.1
million and reduced diluted earnings per share by $0.05.
(c) GAAP net income was adjusted to exclude income tax
benefits of $2.3 million from finalizing prior year tax returns and
other discrete items. GAAP diluted EPS was adjusted to exclude
$0.05 from these same income tax benefits.
CONTACT: Rachel Stern
FactSet Research Systems Inc.
203.810.1000
FactSet Research Systems (NYSE:FDS)
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