UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM 8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
October
24, 2014
Date
of report (date of earliest event reported)
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IMS Health Holdings, Inc.
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(Exact name of registrant as specified in its charter)
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Delaware
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001-36381
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27-1335689
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(State or other jurisdictions of
incorporation or organization)
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(Commission
File Number)
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(I.R.S. Employer
Identification Nos.)
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83 Wooster Heights Road
Danbury, CT 06810
(Address
of principal executive offices) (Zip Code)
(203) 448-4600
(Registrant’s telephone number, including
area code)
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see General Instruction A.2. below):
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On October 24, 2014, the Company issued a press release
regarding financial results for the third quarter ended September 30,
2014. A copy of this press release is being furnished as Exhibit 99.1
to this Current Report on Form 8-K and is incorporated by reference into
this Item 2.02.
In accordance with General Instruction B.2 of Form 8-K, the
information in this Current Report on Form 8-K, including Exhibit 99.1,
shall not be deemed “filed” for the purpose of Section 18 of the
Securities Exchange Act of 1934 or otherwise subject to the liabilities
of that section, nor shall it be deemed incorporated by reference in any
filing under the Securities Act of 1933.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.
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Description
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99.1
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Press Release dated October 24, 2014 issued by IMS Health Holdings,
Inc.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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IMS HEALTH HOLDINGS, INC.
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By:
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/s/ Ronald E. Bruehlman
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Name:
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Ronald E. Bruehlman
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Title:
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Senior Vice President &
Chief Financial Officer
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Dated: October
24, 2014
Exhibit 99.1
IMS
Health Reports Third-Quarter 2014 Results
-
Adjusted
Net Income for the quarter totaled $125 million and Adjusted Diluted
Earnings per Share was $0.37
-
Revenue
up 5.4 percent and Adjusted EBITDA increased 10.5 percent on a
constant currency basis
DANBURY, Conn.--(BUSINESS WIRE)--October 24, 2014--IMS Health Holdings,
Inc. (“IMS Health”) (NYSE:IMS), a leading global provider of information
and technology services to the healthcare and life sciences industries,
today announced results for the quarter ended September 30, 2014.
Third-Quarter 2014 Operating Results
Revenue for the third quarter increased 5.4 percent on a constant
currency basis, or 3.7 percent on a reported basis, to $656 million,
compared with the third quarter of 2013. The company’s strong revenue
performance in the third quarter was driven by a 10.8 percent increase
in technology services revenue on a constant currency basis, or 9.3
percent on a reported basis. Information offerings revenue was up 1.8
percent on a constant currency basis, or flat on a reported basis.
Revenue grew across all regions. Emerging markets revenue increased 10.4
percent on a constant currency basis, or 4.6 percent reported, and
developed markets revenue grew 4.3 percent on a constant currency basis,
or 3.5 percent reported, versus the same period last year.
Adjusted EBITDA increased 10.5 percent on a constant currency basis, or
6.1 percent reported to $221 million, compared with the third quarter of
2013. This reflected both the drop-through from revenue growth to
Adjusted EBITDA and the impact of continued cost reduction initiatives.
Adjusted EBITDA as a percentage of revenue for the quarter improved by
159 basis points on a constant currency basis, or 76 basis points on a
reported basis to 33.7 percent.
Reported revenue and Adjusted EBITDA growth for the quarter was tempered
by the strengthening of the U.S. dollar against key foreign currencies
and the lower U.S. dollar results from the company’s Venezuelan
operations due to the significant revaluation of the Venezuelan Bolivar
effective June 30, 2014.
“We delivered another strong quarter of revenue and Adjusted EBITDA
growth, highlighted by continued double-digit increases in technology
services and emerging markets on a constant currency basis,” said Ari
Bousbib, chairman and CEO, IMS Health. “During the quarter, our IMS
OneTM intelligent cloud and NexxusTM
Commercial Application Suite gained additional traction within the
marketplace, as we won important contracts with life sciences clients.”
Third-quarter 2014 net income was $47 million, compared with a net loss
of $20 million in last year’s third quarter. Reported Adjusted Net
Income was $125 million, down $9 million from $134 million in the prior
year’s quarter, as the benefit of Adjusted EBITDA growth and lower
interest expense was more than offset by a $47 million tax refund
received in 2013.
Diluted earnings per share was $0.14 in the third quarter, compared with
a loss of $0.07 per share in the third quarter of 2013. Adjusted Diluted
Earnings per Share was $0.37 in the third quarter, compared with $0.47
in the prior-year period. Excluding the impact of last year’s $47
million tax refund, Adjusted Diluted Earnings per Share would have
increased $0.07 per share compared with the prior-year quarter.
Year-to-Date 2014 Operating Results
Revenue for the nine months ended September 30, 2014 increased 5.8
percent on a constant currency basis, or 5.0 percent to $1,963 million
on a reported basis, compared with the same period last year. Adjusted
EBITDA increased 9.8 percent on a constant currency basis, or 7.5
percent to $664 million on a reported basis, compared with the first
nine months of 2013. The year-to-date net loss was $197 million,
compared with breakeven results in the prior-year period, with the
decline due to one-time IPO-related charges. Adjusted Net Income was
$329 million, up $23 million from $306 million in the prior-year period.
Financial Position
As of September 30, 2014, cash and cash equivalents and short-term
investments were $355 million and the principal amount of debt was
$3,923 million, resulting in net debt of $3,568 million. IMS Health’s
Gross Leverage Ratio was 4.5 times the last twelve months Adjusted
EBITDA at September 30, 2014 compared with 6.1 times at December 31,
2013. The principal amount of debt declined by $1,104 million, and net
debt declined by $730 million during the first three quarters, primarily
due to the use of IPO proceeds to reduce leverage.
Cash Flow
Net cash provided by operating activities was $191 million in the third
quarter. Capital expenditures and additions to deferred software totaled
$40 million, up $10 million versus the prior year as the company
continued to invest for future growth. Unlevered Free Cash Flow for the
third quarter was $216 million.
Full-Year Guidance
Consistent with previous guidance, on a constant currency basis, IMS
Health now expects revenue growth of 5.5 to 5.7 percent, Adjusted EBITDA
growth of 9.0 to 9.8 percent, and Adjusted Net Income growth of 20 to 21
percent.
As a result of the headwind created by the broad strengthening of the
U.S. dollar against foreign currencies, on a reported basis IMS Health
now expects revenue growth of 3.8 to 4.0 percent, Adjusted EBITDA growth
of 5.8 to 6.6 percent, Adjusted Net Income growth of 15 to 16 percent,
and Adjusted Diluted Earnings per Share of $1.34 to $1.36.
Unlevered Free Cash Flow is now projected to be 70 to 75 percent of
Adjusted EBITDA, excluding the investment for the company’s new global
delivery center in Bangalore.
Constant Currency
IMS Health reports results in U.S. dollars, but does business on a
global basis. Exchange rate fluctuations affect the U.S. dollar value of
foreign currency revenue and expenses and may have a significant effect
on results. The discussion of IMS Health’s financial results in this
release includes comparisons with the prior year in constant currency
terms, using consistent exchange rates. Management believes this
information facilitates comparison of underlying results over time.
Non-GAAP Measures
This release presents certain “non-GAAP Measures” and other statistical
measures, including Adjusted EBITDA, Adjusted Net Income, Adjusted
Diluted Earnings per Share, Gross Leverage Ratio and Unlevered Free Cash
Flow because management believes these measures provide additional
information regarding the company’s performance and its ability to
service debt. In addition, management believes that these measures are
useful to assess the company’s operating performance trends because they
exclude certain material non-cash items, unusual or non-recurring items
that are not expected to continue in the future and certain other items.
The non-GAAP Measures are not presented in accordance with U.S. GAAP,
and IMS Health’s computation of these non-GAAP Measures may vary from
those used by other companies. These measures have limitations as an
analytical tool, and should not be considered in isolation or as a
substitute or alternative to net income or loss, operating income or
loss, cash flows from operating activities, total indebtedness or any
other measures of operating performance, liquidity or indebtedness
derived in accordance with GAAP. Reconciliations of these non-GAAP
Measures to the most directly comparable GAAP measures and related notes
are presented at the end of this release.
The non-GAAP Measures used in our full-year guidance will differ from
U.S. GAAP net income, earnings per share and net cash used in operating
activities, respectively, in ways similar to those described in the
reconciliations at the end of this press release.
Conference Call and Webcast
IMS Health’s management team will host a conference call and webcast to
discuss the company’s third-quarter 2014 results at 9:00 a.m. Eastern
Time on October 24. The audio and slide presentation for the call can be
accessed live by webcast on IMS Health’s Investor Relations website at http://ir.imshealth.com.
The discussion also will be available by dialing +1-800-732-8470 in the
U.S. and Canada, or +1-212-231-2915 for international callers. A replay
of the webcast will be available on the company’s Investor Relations
site at http://ir.imshealth.com following the live call.
Forward-looking Statements
Reported numbers are preliminary and not final until the filing of IMS
Health’s Form 10-Q with the Securities and Exchange Commission and,
therefore, remain subject to adjustment. This press release includes
“forward-looking statements” including statements regarding future
financial and operating results, especially those set forth under the
heading “Full-Year Guidance.” The words “guidance,” “ongoing,”
“believes,” “expects,” “may,” “will” and similar expressions are
intended to identify forward-looking statements, although not all
forward-looking statements contain these identifying words.
Forward-looking statements are not guarantees that the future results,
plans, intentions or expectations expressed or implied will be achieved.
Matters subject to forward-looking statements involve known and unknown
risks and uncertainties, including regulatory, competitive and other
factors, which may cause actual financial or operating results or the
timing of events to be materially different than those expressed or
implied by forward-looking statements. Important factors that could
cause or contribute to such differences include, but are not limited to:
imposition of restrictions on our use of data by data suppliers or their
refusal to license data to us; failure to meet our productivity
objectives; failure to successfully invest in growth opportunities;
imposition of restrictions on our current and future activities under
data protection and privacy laws; breaches or misuse of our or our
outsourcing partners’ security or communications systems; hardware and
software failures, delays in the operation of our computer and
communications systems or the failure to implement system enhancements;
consolidation in the industries in which our clients operate; our
ability to protect our intellectual property rights and our
susceptibility to claims by others that we are infringing on their
intellectual property rights; the risks associated with operating on a
global basis, including fluctuations in the value of foreign currencies
relative to the U.S. dollar, and the ability to successfully hedge such
risks; general economic conditions in the markets in which we operate,
including financial market conditions; the successful completion of the
proposed transaction with Cegedim and our ability to successfully
integrate Cegedim’s information solutions and Customer Relationship
Management businesses, and the other factors set forth in the “Risk
Factors” section of our registration statement on Form S-1 on file with
the SEC, our Form 10-Q for the period ending June 30, 2014 and any
subsequent SEC filings. We disclaim any obligation to update any
forward-looking statements as a result of developments occurring after
the date of this press release, even if estimates change, and you should
not rely on those statements as representing our views as of any date
subsequent to the date of this press release.
About IMS Health
IMS Health is a leading global information and technology services
company providing clients in the healthcare industry with comprehensive
solutions to measure and improve their performance. By applying
sophisticated analytics and proprietary application suites hosted on the IMS
One intelligent cloud, the company connects more than 10 petabytes
of complex healthcare data on diseases, treatments, costs and outcomes
to help its clients run their operations more efficiently. Drawing on
information from 100,000 suppliers and on insights from more than 45
billion healthcare transactions processed annually, IMS Health’s
approximately 10,000 employees drive results for healthcare clients
globally. Customers include pharmaceutical, consumer health and medical
device manufacturers and distributors, providers, payers, government
agencies, policymakers, researchers and the financial community.
As a global leader in protecting individual patient privacy, IMS Health
uses anonymous healthcare data to deliver critical, real-world disease
and treatment insights. These insights help biotech and pharmaceutical
companies, medical researchers, government agencies, payers and other
healthcare stakeholders to identify unmet treatment needs and understand
the effectiveness and value of pharmaceutical products in improving
overall health outcomes. Additional information is available at www.imshealth.com.
IMSFIN
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Table 1
IMS Health Holdings, Inc.
Income Statement
(Preliminary and Unaudited)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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(in millions, except per share data)
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2014
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2013
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2014
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2013
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Revenue
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$
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656
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$
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633
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$
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1,963
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$
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1,870
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Information
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382
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381
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1,149
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1,138
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Technology services
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274
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252
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814
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732
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Operating costs of information, exclusive of
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depreciation and amortization
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164
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163
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502
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480
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Direct and incremental costs of technology services,
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exclusive of depreciation and amortization
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147
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130
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423
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377
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Selling and administrative expenses, exclusive
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of depreciation and amortization
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139
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143
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557
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|
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433
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Depreciation and amortization
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109
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98
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|
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331
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|
|
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303
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Severance, impairment and other charges
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4
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(1
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)
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29
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1
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Operating Income
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93
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|
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100
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|
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121
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|
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276
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|
Interest income
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1
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|
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|
1
|
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3
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|
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3
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Interest expense
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(43
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)
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(87
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)
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(181
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)
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(241
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)
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Other income (loss), net
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7
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(54
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)
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(281
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)
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(44
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)
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Non-Operating Loss, Net
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(35
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)
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(140
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)
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(459
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)
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(282
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)
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Income (Loss) before income taxes
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58
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|
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(40
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)
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(338
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)
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(6
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)
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(Provision for) benefit from income taxes
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(11
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)
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|
20
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|
|
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141
|
|
|
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6
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Net Income (Loss)
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$
|
47
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|
|
$
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(20
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)
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$
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(197
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)
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$
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—
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Earnings (Loss) per Share Attributable to Common
Shareholders:
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Basic
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$
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0.14
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|
$
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(0.07
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)
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|
$
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(0.63
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)
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|
$
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—
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Diluted
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$
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0.14
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$
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(0.07
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)
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$
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(0.63
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)
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$
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—
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Weighted-Average Common Shares Outstanding:
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Basic
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332.1
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280.0
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314.1
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280.0
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Diluted
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342.3
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280.0
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314.1
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280.0
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Table 2
IMS Health Holdings, Inc.
Condensed Balance Sheet
(Preliminary and Unaudited)
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September 30,
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December 31,
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(in millions)
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2014
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2013
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Assets:
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Cash and Cash Equivalents
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$
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354
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$
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725
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Restricted Cash
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24
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27
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Accounts receivable, net
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318
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313
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Property, plant and equipment, net
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155
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117
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Computer software
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263
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263
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Goodwill & other intangibles
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5,765
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6,090
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Other current & LT assets
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511
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|
|
|
464
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Total Assets
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$
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7,390
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$
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7,999
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|
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Liabilities and Shareholders’ Equity:
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Liabilities:
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|
|
|
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Accounts payable, accrued & other current liabilities, & deferred
revenues
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$
|
760
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$
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866
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Post-retirement/employment benefits
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|
75
|
|
|
|
77
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Long-term deferred tax and other liabilities
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|
|
1,020
|
|
|
|
1,213
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|
Debt
|
|
|
3,899
|
|
|
|
4,960
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Total Liabilities
|
|
|
5,754
|
|
|
|
7,116
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|
|
|
|
|
|
|
|
|
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Shareholders’ Equity:
|
|
|
|
|
|
|
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Total Shareholders’ Equity
|
|
|
1,636
|
|
|
|
883
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders’ Equity
|
|
$
|
7,390
|
|
|
$
|
7,999
|
|
|
|
|
|
|
Table 3
IMS Health Holdings, Inc.
Condensed Statement of Cash Flows
(Preliminary and Unaudited)
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|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
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(in millions)
|
|
2014
|
|
2013
|
|
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(197
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)
|
|
$
|
—
|
|
|
Adjustments to Reconcile Net Loss to Net Cash
(Used in) Provided by Operating Activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
331
|
|
|
|
303
|
|
|
Deferred income taxes
|
|
|
(197
|
)
|
|
|
(48
|
)
|
|
Non-cash stock-based compensation charges
|
|
|
52
|
|
|
|
18
|
|
|
Losses on Venezuela remeasurement
|
|
|
49
|
|
|
|
14
|
|
|
Other
|
|
|
101
|
|
|
|
54
|
|
|
Change in assets and liabilities, excluding effects from
acquisitions and dispositions:
|
|
|
|
|
|
|
|
|
|
Changes in current assets and liabilities
|
|
|
(137
|
)
|
|
|
16
|
|
|
Changes in long term assets and liabilities
|
|
|
(39
|
)
|
|
|
(21
|
)
|
|
Net Cash (Used in) Provided by Operating Activities
|
|
|
(37
|
)
|
|
|
336
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(59
|
)
|
|
|
(25
|
)
|
|
Additions to computer software
|
|
|
(70
|
)
|
|
|
(53
|
)
|
|
Payments for acquisitions of businesses, net of cash acquired
|
|
|
(58
|
)
|
|
|
(74
|
)
|
|
Other
|
|
|
(20
|
)
|
|
|
(22
|
)
|
|
Net Cash Used in Investing Activities
|
|
|
(207
|
)
|
|
|
(174
|
)
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from initial public offering, net of costs
|
|
|
987
|
|
|
|
—
|
|
|
Other financing activities
|
|
|
(1,052
|
)
|
|
|
(48
|
)
|
|
Net Cash Used in Financing Activities
|
|
|
(65
|
)
|
|
|
(48
|
)
|
|
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
|
|
(62
|
)
|
|
|
(31
|
)
|
|
(Decrease) Increase in Cash and Cash Equivalents
|
|
|
(371
|
)
|
|
|
83
|
|
|
Cash and Cash Equivalents, Beginning of Period
|
|
|
725
|
|
|
|
580
|
|
|
Cash and Cash Equivalents, End of Period
|
|
$
|
354
|
|
|
$
|
663
|
|
|
|
|
|
|
|
|
|
Table 4
IMS Health Holdings, Inc.
Net Income (Loss) to Adjusted EBITDA Reconciliation
(Preliminary and Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
(in millions)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Net Income (Loss)
|
|
$
|
47
|
|
|
$
|
(20
|
)
|
|
$
|
(197
|
)
|
|
$
|
—
|
|
|
Provision for (benefit from) income taxes
|
|
|
11
|
|
|
|
(20
|
)
|
|
|
(141
|
)
|
|
|
(6
|
)
|
|
Other (income) loss, net(1)
|
|
|
(7
|
)
|
|
|
54
|
|
|
|
281
|
|
|
|
44
|
|
|
Interest expense
|
|
|
43
|
|
|
|
87
|
|
|
|
181
|
|
|
|
241
|
|
|
Interest income
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
(3
|
)
|
|
|
(3
|
)
|
|
Depreciation and amortization
|
|
|
109
|
|
|
|
98
|
|
|
|
331
|
|
|
|
303
|
|
|
Deferred revenue purchase accounting adjustments
|
|
|
1
|
|
|
|
—
|
|
|
|
3
|
|
|
|
2
|
|
|
Non-cash stock-based compensation charges
|
|
|
6
|
|
|
|
5
|
|
|
|
52
|
|
|
|
18
|
|
|
Restructuring and related charges
|
|
|
5
|
|
|
|
2
|
|
|
|
34
|
|
|
|
7
|
|
|
Acquisition-related charges
|
|
|
7
|
|
|
|
2
|
|
|
|
19
|
|
|
|
6
|
|
|
Sponsor monitoring termination / fees
|
|
|
—
|
|
|
|
2
|
|
|
|
74
|
|
|
|
6
|
|
|
Non-executive phantom stock compensation
|
|
|
—
|
|
|
|
—
|
|
|
|
30
|
|
|
|
—
|
|
|
Adjusted EBITDA
|
|
$
|
221
|
|
|
$
|
209
|
|
|
$
|
664
|
|
|
$
|
618
|
|
|
Depreciation and amortization(2)
|
|
|
(32
|
)
|
|
|
(24
|
)
|
|
|
(94
|
)
|
|
|
(79
|
)
|
|
Interest expense, net
|
|
|
(42
|
)
|
|
|
(86
|
)
|
|
|
(178
|
)
|
|
|
(238
|
)
|
|
Royalty Hedge Gains/(Losses)
|
|
|
1
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
Less cash tax (payments)/refunds
|
|
|
(23
|
)
|
|
|
35
|
|
|
|
(64
|
)
|
|
|
5
|
|
|
Adjusted Net Income
|
|
$
|
125
|
|
|
$
|
134
|
|
|
$
|
329
|
|
|
$
|
306
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
2014 YTD includes $49M FX loss due to the devaluation of Venezuelan
Bolivar assets and liabilities, $151M for debt make-whole premiums,
$68M for the write-off of debt issuance costs and discounts
|
|
|
|
|
(2)
|
|
Excludes amortization related to purchase accounting
|
|
|
|
|
|
|
|
|
Table 5
IMS Health Holdings, Inc.
Net Income (Loss) to Adjusted Net Income Reconciliation
(Preliminary and Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
(in millions, except per share data)
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
Net Income (Loss)
|
|
$
|
47
|
|
|
$
|
(20
|
)
|
|
$
|
(197
|
)
|
|
$
|
—
|
|
|
Provision for (benefit from) income taxes
|
|
|
11
|
|
|
|
(20
|
)
|
|
|
(141
|
)
|
|
|
(6
|
)
|
|
Amortization associated with purchase accounting
|
|
|
77
|
|
|
|
74
|
|
|
|
230
|
|
|
|
224
|
|
|
Deferred revenue purchasing accounting adjustments
|
|
|
1
|
|
|
|
—
|
|
|
|
3
|
|
|
|
2
|
|
|
Non-cash stock-based compensation charges
|
|
|
6
|
|
|
|
5
|
|
|
|
52
|
|
|
|
18
|
|
|
Restructuring and related charges(1)
|
|
|
5
|
|
|
|
2
|
|
|
|
41
|
|
|
|
7
|
|
|
Acquisition-related charges
|
|
|
7
|
|
|
|
2
|
|
|
|
19
|
|
|
|
6
|
|
|
Sponsor monitoring termination / fees
|
|
|
—
|
|
|
|
2
|
|
|
|
74
|
|
|
|
6
|
|
|
Non-executive phantom stock compensation
|
|
|
—
|
|
|
|
—
|
|
|
|
30
|
|
|
|
—
|
|
|
Other (income) loss, net (2)
|
|
|
(7
|
)
|
|
|
54
|
|
|
|
281
|
|
|
|
44
|
|
|
Adjusted Pre Tax Income
|
|
$
|
147
|
|
|
$
|
99
|
|
|
$
|
392
|
|
|
$
|
301
|
|
|
Royalty Hedge Gains/(Losses)
|
|
|
1
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
Less cash tax (payments)/refunds
|
|
|
(23
|
)
|
|
|
35
|
|
|
|
(64
|
)
|
|
|
5
|
|
|
Adjusted Net Income
|
|
$
|
125
|
|
|
$
|
134
|
|
|
$
|
329
|
|
|
$
|
306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings per Share Attributable to Common
Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.38
|
|
|
$
|
0.48
|
|
|
$
|
1.05
|
|
|
$
|
1.09
|
|
|
Diluted
|
|
$
|
0.37
|
|
|
$
|
0.47
|
|
|
$
|
1.02
|
|
|
$
|
1.06
|
|
|
Weighted-Average Common Shares
Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
332.1
|
|
|
|
280.0
|
|
|
|
314.1
|
|
|
|
280.0
|
|
|
Diluted
|
|
|
342.3
|
|
|
|
285.3
|
|
|
|
323.1
|
|
|
|
287.8
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
2014 YTD includes $7M of accumulated depreciation related to real
estate transactions in Q2-2014
|
|
|
|
|
(2)
|
|
2014 YTD includes $49M FX loss due to the devaluation of Venezuelan
Bolivar assets and liabilities, $151M for debt make-whole premiums,
$68M for the write-off of debt issuance costs and discounts
|
|
|
|
|
|
|
|
|
|
Table 6
IMS Health Holdings, Inc.
Net Cash (Used in) Provided by Operating Activities
to Unlevered Free Cash Flow
(Preliminary and Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
(in millions)
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
Net Cash (Used in) Provided by Operating Activities
|
|
$
|
191
|
|
|
$
|
212
|
|
|
$
|
(37
|
)
|
|
$
|
336
|
|
|
Capital expenditures
|
|
|
(14
|
)
|
|
|
(8
|
)
|
|
|
(59
|
)
|
|
|
(25
|
)
|
|
Additions to computer software
|
|
|
(26
|
)
|
|
|
(22
|
)
|
|
|
(70
|
)
|
|
|
(53
|
)
|
|
Free Cash Flow
|
|
$
|
151
|
|
|
$
|
182
|
|
|
$
|
(166
|
)
|
|
$
|
258
|
|
|
Cash interest payments
|
|
|
26
|
|
|
|
61
|
|
|
|
196
|
|
|
|
201
|
|
|
Cash tax payments
|
|
|
23
|
|
|
|
(35
|
)
|
|
|
64
|
|
|
|
(5
|
)
|
|
Acquisition related charges
|
|
|
7
|
|
|
|
2
|
|
|
|
19
|
|
|
|
6
|
|
|
Sponsor monitoring termination / fees
|
|
|
—
|
|
|
|
2
|
|
|
|
74
|
|
|
|
6
|
|
|
Non-executive phantom stock compensation
|
|
|
—
|
|
|
|
—
|
|
|
|
30
|
|
|
|
—
|
|
|
Debt extinguishment make-whole payments
|
|
|
—
|
|
|
|
—
|
|
|
|
151
|
|
|
|
—
|
|
|
Severance, transaction & other payments
|
|
|
8
|
|
|
|
13
|
|
|
|
19
|
|
|
|
33
|
|
|
FX hedge payments
|
|
|
1
|
|
|
|
(3
|
)
|
|
|
7
|
|
|
|
(8
|
)
|
|
Unlevered Free Cash Flow
|
|
$
|
216
|
|
|
$
|
222
|
|
|
$
|
394
|
|
|
$
|
491
|
|
|
|
|
|
|
|
|
|
|
|
Table 7
IMS Health Holdings, Inc.
Calculation of Gross Leverage Ratio
as of September 30, 2014
(Preliminary and Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
Gross Debt as of September 30, 2014
|
|
$
|
3,923
|
|
|
Adjusted EBITDA for the year ended December 31, 2013
|
|
|
829
|
|
|
Less: Adjusted EBITDA for the nine months ended September 30, 2013
|
|
|
(618
|
)
|
|
Add: Adjusted EBITDA for the nine months ended September 30, 2014
|
|
|
664
|
|
|
Adjusted EBITDA for the twelve months ended September 30, 2014
|
|
$
|
875
|
|
|
Gross Leverage Ratio (Gross Debt/LTM Adjusted EBITDA)
|
|
|
4.5x
|
|
CONTACT:
IMS Health
Tom Kinsley, 203-448-4691
Investor Relations
tkinsley@imshealth.com
or
Tor
Constantino, 484-567-6732
Media Relations
tconstantino@us.imshealth.com
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