This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Thomson Reuters' CEO Discusses Q4 2011 Results - Earnings Call Transcript

Stocks in this article: TRI

2011 revenue grew by 5%, with particularly strong performance from our Professional businesses, Legal, Tax & Accounting, IP & Science. The Markets business grew 2% despite market headwinds and internal execution issues. EBITDA and operating profit margins were up nicely despite a $50 million charge in the fourth quarter, primarily related to the reorganization of the Markets business. Excluding that charge, the EBITDA margin was up over 300 basis points and operating margin was up nearly 100 basis points.

I'm sure you will be pleased to hear, as I am to announce, that we have completed the Reuters integration program, having achieved aggregate savings of $1.7 billion. This is the last time you will hear us utter the word integration.

Reported free cash flow was up slightly, but was impacted by a negative swing in working capital and the disposal of several cash-generative businesses last year. Free cash flow from ongoing businesses was up 7% for the year. Stephane will provide you with more detail during his presentation. Finally, adjusted earnings per share for the year were $1.98 or $2.03 before the reorganization charge I previously mentioned. Both figures exclude the impairment charge.

Professional's full year revenues rose 9%, driven by solid growth across each business: Legal was up 8%; Tax & Accounting was up 14%; and IP & Science was up 7%, a terrific performance. The strong growth is reflective of the investments we've been making in these businesses over the past 4 years with innovative products like WestlawNext and ONESOURCE. This organic growth has been supplemented with investments in fast-growing geography such as Latin America and in fast-growing adjacencies like tax management services for governments.

For the former Markets division businesses, now Financial & Risk, revenues increased 2%, finishing the year below what we had originally expected. Last year's poorly executed sales reorganization into the face of a challenging market environment resulted in a negative net sales for the second half of 2011. That, of course, creates a spillover effect into 2012. Still, significant parts of the Financial & Risk business are performing well and provide a solid foundation. We have a new, energetic, and engaged management team. We have a refined and more focused strategy and we have a whole new environment of rigorous operating management, transparency, accountability, and execution. We like our position. We have the best content, broad, deep, and truly global. We have a full range of solutions from desktop to enterprise at multiple price points and value propositions. We have a model that works with clients' internal data, their systems, and their third-party partners to build platforms upon which they can innovate. We have the best information architecture to tie it all together, and we are, far and away, the leader in regulatory compliance, perhaps the most significant factor driving change in financial services today. I'm confident that David Craig and his team are the right combination of ambition, urgency, and pragmatism to get the job done.

Read the rest of this transcript for free on

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs