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MSCI Inc. Reports Fourth Quarter And Full Year 2012 Financial Results

Stocks in this article: MSCI

MSCI Inc. (NYSE: MSCI), a leading global provider of investment decision support tools, including indices, portfolio risk and performance analytics and corporate governance services, today announced results for the fourth quarter and full year ended December 31, 2012.

(Note: Percentage changes are referenced to the comparable period in 2011, unless otherwise noted.)

  • Operating revenues increased 9.3% to $247.1 million in fourth quarter 2012 and 5.5% to $950.1 million for the full year 2012.
  • Net income increased 22.4% to $54.5 million in fourth quarter 2012 and net income grew 6.2% to $184.2 million for full year 2012.
  • Adjusted EBITDA (defined below) grew by 12.5% to $116.6 million in fourth quarter 2012. For full year 2012, Adjusted EBITDA grew by 3.8% to $434.5 million. Fourth quarter 2012 Adjusted EBITDA margin increased to 47.2% from 45.8% and full year 2012 Adjusted EBITDA margin fell to 45.7% from 46.5%.
  • Diluted EPS for fourth quarter 2012 rose 22.2% to $0.44 and full year 2012 Diluted EPS increased 5.0% to $1.48.
  • Fourth quarter 2012 Adjusted EPS (defined below) rose 15.6% to $0.52. Full year 2012 Adjusted EPS rose 4.9% to $1.94.
  • MSCI entered into a $100 million accelerated share repurchase agreement in December 2012 and its Board of Directors authorized an additional $200 million repurchase program.
  • MSCI’s run rate grew by 9.7% to $967.4 million in fourth quarter 2012, driven by organic subscription growth of 5.1%, organic asset-based fee growth of 6.2% and the acquisition of IPD.

“We are proud of what MSCI achieved in 2012,” Henry A. Fernandez, Chairman and CEO, said. “Despite the challenging environment, MSCI reported total run rate growth of 9.7%. MSCI’s growth underscores the importance of being able to offer our clients a diverse portfolio of investment decision support tools. While our sales to active portfolio managers slowed, our run rate from passive investment products grew by 6.2%, even after factoring in the loss of the Vanguard ETFs. We also benefited from renewed growth in our governance segment. Since acquiring this business as part of the purchase of RiskMetrics in 2010, we have focused on broadening its product offering and it is gratifying to see these efforts begin to pay off.

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