DST Systems Management Discusses Q2 2012 Results - Earnings Call Transcript

So taking into account a number of things on an adjusted non-GAAP basis, diluted earnings per share for the quarter were $0.77, and that compares to $1.05 for the second quarter of '11 and it also compares to $1.05 for the first quarter of '12. We generally don't try to provide a comparative analysis from like previous quarter to current, but when we look at all the components that have come into this quarter's results, we think it's appropriate to try and take a look at some of the significant variances from the first quarter to kind of give you a map from there to Q2.

So there are a number of factors, several of them being nonoperating, that resulted in a $0.28 reduction in the non-GAAP earnings for the second quarter as compared to the first. One of the more significant wins was a change in our estimated full year 2012 income tax rate and that negatively impacted the second quarter's diluted earnings by approximately $0.13 a share. So the full year 2012 estimated tax rate, we've increased it from 34.5% in the first quarter to our estimate now, which will be 37%, and that recorded in the second quarter. And that's a function of lower foreign tax credits available to us, some increased losses in international subsidiary, and in either of those cases, there's no current tax benefit.

So in order to get to the 37%, a 41.8% tax rate was needed to be recorded in the second quarter to bring the whole year in line with what are our current expectations which, again, is at 37%.

Read the rest of this transcript for free on seekingalpha.com

« First ‹ Previous 1 2 3