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MSCI Inc. Reports Second Quarter 2013 Financial Results And Announces Additional $100 Million Accelerated Share Repurchase

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 second quarter and six months ended June 30, 2013.

(Note: Percentage changes are referenced to the comparable period in 2012, unless otherwise noted.)

  • Operating revenues increased 8.1% to $257.9 million in second quarter 2013 and 9.0% to $509.8 million for six months 2013.
  • Net income increased 62.6% to $61.1 million in second quarter 2013 and net income grew 47.2% to $120.0 million for six months 2013.
  • Diluted EPS for second quarter 2013 rose 66.7% to $0.50 and six months 2013 Diluted EPS increased 48.5% to $0.98.
  • Adjusted EBITDA 1 grew by 8.0% to $116.6 million in second quarter 2013. For six months 2013, Adjusted EBITDA 1 grew by 8.0% to $226.7 million. Second quarter 2013 Adjusted EBITDA margin was flat at 45.2% and six months 2013 Adjusted EBITDA margin fell slightly to 44.5% from 44.9%.
  • Second quarter 2013 Adjusted EPS 2 rose 16.0% to $0.58. Six months 2013 Adjusted EPS 2 rose 21.3% to $1.14.
  • MSCI’s Run Rate grew by 7.9% to $992.6 million in second quarter 2013, driven by organic 3 subscription growth of 3.7%, organic asset-based fee growth of 2.1% and the acquisitions of IPD and InvestorForce.
  • MSCI announced that it will enter into a $100.0 million accelerated share repurchase (“ASR”) agreement as of the market-close today. The prior agreement, which was announced in December 2012 and concluded in July 2013, resulted in the repurchase of 3.0 million shares.
Table 1: MSCI Inc. Selected Financial Information (unaudited)
             
 
Three Months Ended Change from Six Months Ended Change From
June 30, June 30, June 30, June 30, June 30, June 30,
In thousands, except per share data   2013 2012 2012 2013 2012 2012
Operating revenues $ 257,898 $ 238,565 8.1 % $ 509,807 $ 467,617 9.0 %
Operating expenses $ 160,726 $ 151,444 6.1 % $ 322,108 $ 299,517 7.5 %
Net income $ 61,053 $ 37,546 62.6 % $ 119,990 $ 81,512 47.2 %
% Margin 23.7 % 15.7 % 23.5 % 17.4 %
Diluted EPS $ 0.50 $ 0.30 66.7 % $ 0.98 $ 0.66 48.5 %
 
Adjusted EPS 2 $ 0.58 $ 0.50 16.0 % $ 1.14 $ 0.94 21.3 %
Adjusted EBITDA 1 $ 116,562 $ 107,912 8.0 % $ 226,655 $ 209,819 8.0 %
% Margin 45.2 % 45.2 % 44.5 % 44.9 %

1 Net Income before income taxes, other net expense and income, depreciation, amortization, non-recurring stock-based compensation, the lease exit charge and restructuring costs. See Table 13 titled "Reconciliation of Adjusted EBITDA to Net Income (unaudited)" and information about the use of non-GAAP financial information provided under "Notes Regarding the Use of Non-GAAP Financial Measures.”

2 Per share net income before after-tax impact of amortization of intangibles, non-recurring stock-based compensation, restructuring costs, the lease exit charge and debt repayment and refinancing expenses. See Table 14 titled "Reconciliation of Adjusted Net Income and Adjusted EPS to Net Income and EPS (unaudited)" and information about the use of non-GAAP financial information provided under "Notes Regarding the Use of Non-GAAP Financial Measures.”

3 For the purposes of analyzing revenue and Run Rate trends, organic growth comparisons exclude the impact of the acquisitions of IPD Group Limited (“IPD”) and Investor Force Holdings, Inc. (“InvestorForce”), as well as the sale of the CFRA product line.





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