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FactSet Research Systems Reports Results For The First Quarter Of Fiscal 2013

About FactSet

FactSet, a leading provider of financial information and analytics, helps the world's best investment professionals outperform.  More than 49,600 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 was named the 2012 Best Research Provider at the Inside Market Data and Inside Reference Data Awards and 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  November 30,
(In thousands, except per share data)  2012  2011
     
Revenues $211,085 $196,448
     
Operating expenses    
Cost of services 73,586 66,833
Selling, general and administrative 66,414 62,862
Total operating expenses 140,000 129,695
     
Operating income 71,085 66,753
Other income  428 277
Income before income taxes 71,513 67,030
     
Provision for income taxes 21,744 21,486
Net income $49,769 $45,544
     
Diluted earnings per common share $1.11 $0.99
     
Diluted weighted average common shares 44,984 46,103
 
 
FactSet Research Systems Inc. 
Consolidated Statements of Comprehensive Income - Unaudited 
     
   Three Months Ended
   November 30,
(In thousands) 2012 2011
     
Net income $49,769 $45,544
     
Other comprehensive income (loss), net of tax    
Net unrealized gain (loss) on cash flow hedges 1,287  (2,116)
Foreign currency translation adjustments  3,074  (11,648)
Other comprehensive income (loss) 4,361  (13,764)
     
Comprehensive income $54,130 $31,780
 
 
FactSet Research Systems Inc.
Consolidated Balance Sheets - Unaudited
  November 30, August 31,
(In thousands) 2012 2012
     
ASSETS    
Cash and cash equivalents $210,712 $189,044
Investments 14,527 13,919
Accounts receivable, net of reserves 78,895 74,251
Prepaid taxes -- 2,485
Deferred taxes 4,357 5,085
Prepaid expenses and other current assets 11,555 14,341
Total current assets 320,046 299,125
     
Property, equipment, and leasehold improvements, net 75,521 76,530
Goodwill 246,734 245,791
Intangible assets, net 41,854 43,371
Deferred taxes 22,064 23,113
Other assets 5,637 6,213
TOTAL ASSETS $711,856 $694,143
     
LIABILITIES    
Accounts payable and accrued expenses $28,538 $27,680
Accrued compensation  14,934 41,274
Deferred fees  30,893 30,495
Taxes payable  7,222 --
Dividends payable 13,746 13,727
Total current liabilities 95,333 113,176
     
Deferred taxes  2,582 2,593
Taxes payable 5,699 5,464
Deferred rent and other non-current liabilities 21,729 20,646
TOTAL LIABILITIES $125,343 $141,879
     
STOCKHOLDERS' EQUITY    
Common stock $460 $456
Additional paid-in capital 159,672 137,569
Treasury stock, at cost  (150,990)  (122,749)
Retained earnings 595,736 559,714
Accumulated other comprehensive loss  (18,365)  (22,726)
TOTAL STOCKHOLDERS' EQUITY 586,513 552,264
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $711,856 $694,143
 
 
FactSet Research Systems Inc.
Consolidated Statements of Cash Flows -- Unaudited
   Three Months Ended
(In thousands)  November 30,
  2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $49,769 $45,544
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation and amortization  8,917  8,403
Stock-based compensation expense  5,203  5,880
Deferred income taxes  1,766  57
Gain on sale of assets  (2)  (1)
Tax benefits from share-based payment arrangements  (4,032)  (3,178)
Changes in assets and liabilities    
Accounts receivable, net of reserves  (4,655)  10,171
Accounts payable and accrued expenses  2,851  2,839
Accrued compensation  (26,501)  (24,523)
Deferred fees  410  (1,279)
Taxes payable, net of prepaid taxes  13,709  10,979
Prepaid expenses and other assets  2,613  539
Deferred rent and other non-current liabilities  997  (611)
Other working capital accounts, net  (409)  (66)
Net cash provided by operating activities  50,636  54,754
     
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchases of investments  (7,795)  (15,000)
Proceeds from sales of investments  7,500  -- 
Purchases of property, equipment and leasehold improvements, net of proceeds from dispositions  (6,097)  (6,054)
Net cash used in investing activities  (6,392)  (21,054)
     
CASH FLOWS FROM FINANCING ACTIVITIES    
Dividend payments  (13,631)  (12,084)
Repurchase of common stock  (28,241)  (14,732)
Proceeds from employee stock plans  13,102  7,420
Tax benefits from share-based payment arrangements   4,032  3,178
Net cash used in financing activities  (24,738)  (16,218)
     
Effect of exchange rate changes on cash and cash equivalents  2,162  (5,413)
     
Net increase in cash and cash equivalents 21,668 12,069
     
Cash and cash equivalents at beginning of period 189,044 181,685
Cash and cash equivalents at end of period $210,712 $193,754
 
 
Non-GAAP Financial Measures
Financial measures in accordance with GAAP including diluted earnings per share have been adjusted to report non-GAAP financial measures. FactSet uses these non-GAAP financial measures, both in presenting its results to stockholders and the investment community, and in its internal evaluation and Company believes that these 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. Non-GAAP measures may also facilitate comparisons to FactSet's historical performance. 
       
  Three Months Ended  
  November 30,   
(Unaudited) 2012 2011 Change
       
GAAP Diluted earnings per common share $1.11 $0.99  
Stock-based compensation, net of tax (a)  0.08 0.09  
Amortization of intangible assets from acquisitions, net of tax (a) 0.03 0.03  
Non-GAAP diluted earnings per share (b) $1.22 $1.10 11%
 
       
(a)  For the purposes of calculating non-GAAP diluted earnings per share above, stock-based compensation expense and amortization of intangible assets are taxed at the effective tax rates. For the three months ended November 30, 2012, the effective tax rate was 30.4%. For the three months ended November 30, 2011, the effective tax rate was 32.1%.
       
(b)  The sum of the diluted earnings per share may not equal the totals above due to rounding.
CONTACT: Rachel Stern
         FactSet Research Systems Inc.
         203.810.1000

FactSet Research Systems Inc.

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