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I would like to remind everyone that our remarks during this conference call will contain forward-looking statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements are neither promises nor guarantees, but involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including, without limitation, those risks detailed on Solera's filings with the SEC, including our most recent quarterly filing on Form 10-Q for the quarter ended March 31, 2012.We disclaim any obligation to publicly update or revise any such statements to reflect any change in our expectations following events, conditions, or circumstances on which any such statements may be based or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements. We also plan to discuss certain non-GAAP financial measures on this call. A reconciliation of Solera's non-GAAP financial measures to GAAP financial measures is included in today's press release, which is available on the Investor Relations section of our company website at solerainc.com. When we refer to analyst consensus during this call, we mean the consensus results on an actual currency basis of certain analysts that cover the company as reported by Thomson FirstCall. We measure constant currency or the effects on our results that are attributed to changes in foreign currency exchange rates by measuring the incremental difference between translating the current and prior-period results at the monthly average rates for the same period from the prior year. Unless otherwise stated, all period-to-period revenue, adjusted EBITDA, and margin comparisons are on a constant currency basis. When we refer to run rate, waste savings or synergies, we mean savings to be realized over each 12-month period following the execution of these efforts.
Our fiscal year 2013 outlook assumes constant currency exchange rates from those currently prevailing with no assumed strengthening of the US dollar, no acquisitions of businesses, no stock repurchases, and an assumed 28% tax rate to calculate adjusted net income. Consistent with our guidance policy, we do not plan to update guidance during the quarter, but only at our regularly scheduled quarterly or annual conference calls.To help those of you who track and factor in the impact of a strengthening or weakening dollar throughout the remainder of the year, we would approximate by using the following formula. For each 1% change in the US dollar versus all of the foreign currencies in which we transact business, the negative or positive impact to fiscal year '13 revenues will be approximately 0.6% and the negative or positive impact to adjusted EBITDA will be approximately 0.7%. Amounts in percentages throughout our remarks reflect rounding adjustments. All information discussed during this call and webcast is protected by United States Copyright Law, may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of Solera Holdings, Inc. I would now like to introduce Tony Aquila our Founder, Chairman and CEO. Tony Aquila Thank you, Kamal. Good afternoon, everyone, and thanks for joining us today. For today's call I'll start by providing you some context for our fiscal 2012 performance and then give you our full year and fourth quarter results. After Renato's comments, and as we promised, I'll come back and introduce Solera's next mission which will converge with our road to $1 billion in revenue and $450 million in adjusted EBITDA. One year ago we issued guidance for fiscal 2012 which targeted organic top line growth excluding Explore of 6% to 7% and 70 to 80 basis points of margin expansion, which included 110 basis points of projected headwind from the Swiss franc. Shortly after that, European crisis accelerated, persisted through fiscal 2012, and continues to be a headwind. European GDP estimates have been steadily ratcheted down throughout the fiscal year and macro uncertainty had a ripple effect on the economy, resulting in lower car sales. The impact to us was increased in claims volatility that in certain countries rose to levels we have not seen before. To mitigate the impact of this macro uncertainty, we rapidly deployed countermeasures which included a workforce realignment, assistant programs for certain heavily impacted customers, and accelerated investments in rapid profitable innovation, geographic expansion, and disciplined M&A. Read the rest of this transcript for free on seekingalpha.com