NORWALK, Conn., Dec. 14, 2010 (GLOBE NEWSWIRE) -- FactSet Research Systems Inc. (NYSE:FDS) (Nasdaq:FDS), a leading provider of integrated financial information and analytical applications to the global investment community, today announced its results for the first quarter of fiscal 2011. For the quarter ended November 30, 2010, revenues were $173.3 million, up 12% compared to the prior year. Operating income for the first quarter increased to $59.4 million, a rise of 10% from $54.0 million in the same period of fiscal 2010. Net income advanced to $41.6 million as compared to $36.1 million a year ago. Diluted earnings per share increased to $0.88, up 19% from $0.74 in the same period of fiscal 2010. Included in this quarter's EPS were income tax benefits of $0.03 per share from adjustments to certain reserves to reflect settlements with taxing authorities regarding previously filed tax returns.
|Consolidated Statements of Income|
|(Condensed and Unaudited)||Three Months Ended|
|(In thousands, except per share data)||2010||2009||Change|
|Provision for income taxes||17,953||18,142||(1.0)%|
|Diluted earnings per share||$0.88||$0.74||18.9%|
|Diluted weighted average shares||47,487||48,876|
Annual Subscription Value ("ASV")ASV advanced $10.9 million organically during the quarter. ASV was $695 million at November 30, 2010, up 10% organically over the prior year. Of this total, 82% is derived from buy-side clients and the remainder is from the sell-side firms who perform M&A advisory work and equity research. ASV at any given point in time represents the forward-looking revenues for the next 12 months from all services currently being supplied to clients. Financial Highlights – First Quarter of Fiscal 2011
- ASV from FactSet's U.S. operations was $474 million and $221 million related to international operations.
- U.S. revenues were $118.2 million, up 12% from the year ago quarter.
- Non-U.S. revenues rose 10% to $55.1 million.
- Operating margins were 34.3%, up 20 basis points from the fourth quarter.
- Quarterly free cash flow was $14.2 million.
- Free cash flow generated over the last twelve months was $186 million, up 8% over the prior year.
- Cash and investments in marketable securities were $202 million at November 30, 2010.
- The effective tax rate for the quarter was 30.1%. The components of the effective tax rate are 32.5% for the full fiscal 2011 year partially offset by income tax benefits of 2.4%.
- Accounts receivable increased $4 million over the last 12 months while ASV is up $59 million over the same period.
- Professionals using FactSet increased to 43,600, up 800 users.
- Client count was 2,123 at November 30, a net increase of 13 clients during the quarter.
- Annual client retention rate was greater than 95% of ASV and 90% of clients.
- Capital expenditures were $8.0 million, including $5.4 million for computer equipment and the remainder for office space expansion. Major expenditures included adding 12 Hewlett Packard Integrity Blade servers to the Company's data centers.
- A regular quarterly dividend of $10.7 million or $0.23 per share was paid on December 21, to common stockholders of record as of November 30, 2010.
- The Company repurchased 302,666 shares for $26.1 million during the first quarter. At November 30, $133 million remains authorized for future repurchases.
- Common shares outstanding at November 30, 2010 were 46.3 million.
- FactSet successfully relocated its New Hampshire data center to a new, state of the art facility in New Jersey.
- FactSet released its Single Name Security Exposures application to enable clients to look across all portfolios or a subset of portfolios to quantify exposure to a security, an issuer, an industry, a country, or any user-defined set of securities.
- FactSet Fundamentals was enhanced to deliver high quality standardized data within hours of public filings by U.S. companies.
Second Quarter Fiscal 2011 Expectations
- Revenues are expected to range between $174 million and $179 million.
- EPS should range between $0.85 and $0.87. Both ends of this range include a $0.02 reduction to reflect the lapse of the U.S. Federal R&D tax credit on January 1, 2010.
- The 2011 guidance for capital expenditures, net of landlord contributions, is $22 million to $28 million.
About Non-GAAP Free Cash FlowThe presentation of free cash flow is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles ("GAAP"). The GAAP financial measure, cash flows provided by operating activities, has been adjusted to report non-GAAP free cash flow that includes the cash cost for taxes and changes in working capital, less capital expenditures. Included in the just completed first quarter was $22.2 million of net cash provided by operations and $8.0 million of capital expenditures. Non-GAAP free cash flow is not intended as an alternative measure of cash flows provided by operating activities, as determined in accordance with GAAP in the U.S. FactSet uses this financial measure, both in presenting its results to shareholders and the investment community, and in the Company's internal evaluation and management of the businesses. Management believes that this financial measure and the information FactSet provides are useful to investors because they permit investors to view the Company's performance using the same tools that management uses to gauge progress in achieving its goals. FactSet believes this measure is also useful to investors because it is an indication of cash flow that may be available to fund further investments in future growth initiatives. About FactSet FactSet Research Systems Inc. combines integrated financial information, analytical applications, and client service to enhance the workflow and productivity of the global investment community. The Company, headquartered in Norwalk, Connecticut, was formed in 1978 and now conducts operations along with its affiliates from more than twenty-four locations worldwide, including Boston, New York, Chicago, San Mateo, London, Frankfurt, Paris, Milan, Amsterdam, Dubai, Tokyo, Hong Kong, Mumbai and Sydney.
|FactSet Research Systems Inc.|
|Consolidated Statements of Income - Unaudited|
|Three Months Ended|
|(In thousands, except per share data)||2010||2009|
|Cost of services||56,785||50,407|
|Selling, general and administrative||57,075||50,789|
|Total operating expenses||113,860||101,196|
|Income before income taxes||59,554||54,285|
|Provision for income taxes||17,953||18,142|
|Diluted earnings per common share||$0.88||$0.74|
|Weighted average common shares (Diluted)||47,487||48,876|
|FactSet Research Systems Inc.|
|Consolidated Statements of Financial Condition - Unaudited|
|November 30,||August 31,|
|Cash and cash equivalents||$202,351||$195,741|
|Accounts receivable, net of reserves||63,869||59,693|
|Other current assets||8,659||6,899|
|Total current assets||278,894||265,145|
|Property, equipment, and leasehold improvements, net||80,628||79,495|
|Intangible assets, net||50,584||52,179|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable and accrued expenses||$26,982||$23,976|
|Total current liabilities||85,512||109,276|
|Deferred rent and other non-current liabilities||21,256||21,849|
|Additional paid-in capital||375,721||344,144|
|Treasury stock, at cost||(633,905)||(607,798)|
|Accumulated other comprehensive loss||(17,652)||(21,385)|
|Total stockholders' equity||542,558||502,406|
|Total liabilities and stockholders' equity||$659,407||$644,608|
|FactSet Research Systems Inc.|
|Consolidated Statements of Cash Flows - Unaudited|
|Three Months Ended November 30,|
|CASH FLOWS FROM OPERATING ACTIVITIES|
|Adjustments to reconcile net income to net cash provided by operating activities|
|Depreciation and amortization||9,392||9,149|
|Stock-based compensation expense||3,677||2,957|
|Deferred income taxes||(1,151)||(321)|
|Gain on sale of assets||(1)||(157)|
|Tax benefits from share-based payment arrangements||(7,505)||(15,082)|
|Changes in assets and liabilities|
|Accounts receivable, net of reserves||(4,176)||2,544|
|Accounts payable and accrued expenses||2,961||4,082|
|Taxes payable, net of prepaid taxes||10,992||16,620|
|Prepaid expenses and other assets||(2,023)||1,796|
|Other working capital accounts, net||(46)||309|
|Net cash provided by operating activities||22,184||25,235|
|CASH FLOWS FROM INVESTING ACTIVITIES|
|Purchases of property, equipment and leasehold improvements||(8,021)||(6,738)|
|Net cash used in investing activities||(8,021)||(6,738)|
|CASH FLOWS FROM FINANCING ACTIVITIES|
|Repurchase of common stock||(26,107)||(52,118)|
|Proceeds from employee stock plans||20,145||28,529|
|Tax benefits from share-based payment arrangements||7,505||15,082|
|Net cash used in financing activities||(8,974)||(17,789)|
|Effect of exchange rate changes on cash and cash equivalents||1,421||833|
|Net increase in cash and cash equivalents||6,610||1,541|
|Cash and cash equivalents at beginning of period||195,741||216,320|
|Cash and cash equivalents at end of period||$202,351||$217,861|
CONTACT: FactSet Research Systems Inc. Rachel Stern 203.810.1000