FactSet Research Systems Inc. (NYSE:FDS) (NASDAQ:FDS), a leading
provider of integrated global financial information and analytical
applications for the investment community, today announced its
results for the first quarter of fiscal 2016.
For the quarter ended November 30, 2015, revenues grew to $270.5
million. Included in this total was $6.0 million from acquisitions
completed within the last 12 months and the effects of foreign
currency. Operating income was $87.3 million compared to $80.3
million in the prior year period. Net income was $60.0 million
versus $55.9 million a year ago. Diluted earnings per share were
$1.43 compared to $1.32 in the same period of fiscal 2015.
Adjusted operating income increased 9.6% over the prior year
first quarter as current year adjusted operating income excludes
$0.7 million of professional fees related to the Portware
acquisition. Adjusted net income advanced 8.2% over the prior year
and excludes the after-tax expense of $0.5 million from these
professional fees related to Portware. Adjusted diluted EPS was up
9.1% to $1.44 and excludes the $0.01 per share detriment from
acquisition-related expenses.
A reconciliation between GAAP and adjusted financial measures is
presented on page 9 of this press release.
Consolidated Statements of Income
(Condensed and Unaudited) |
Three Months Ended November
30, |
|
|
|
(In thousands, except per
share data) |
|
2015 |
|
|
2014 |
|
Change |
|
|
|
|
Revenues |
$ |
270,504 |
|
$ |
242,676 |
|
11.5 |
% |
|
|
|
|
Adjusted operating
income |
$ |
87,998 |
|
$ |
80,260 |
|
9.6 |
% |
|
|
|
|
Adjusted net income |
$ |
60,438 |
|
$ |
55,860 |
|
8.2 |
% |
|
|
|
|
Adjusted diluted earnings
per share |
$ |
1.44 |
|
$ |
1.32 |
|
9.1 |
% |
|
|
|
|
Diluted weighted average
shares |
|
42,063 |
|
|
42,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
“This was a significant quarter for us on all fronts,” said Phil
Snow, CEO. “Our ASV growth continued to accelerate with our key
client metrics rising higher, all generating a strong start to the
fiscal year. We delivered solid financial performance across our
product portfolios and from each geographic region. And, we made
progress on key strategic initiatives, including closing the
Portware acquisition and the expansion of our share repurchase
program.”
Annual Subscription Value (“ASV”)ASV was $1.109
billion at November 30, 2015, up 9.4% organically from a year ago.
Over the last three months ASV increased $12.1 million, which
excludes acquired ASV from Portware and the effects of foreign
currency. 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.
Buy-side and sell-side ASV growth rates were 9.3% and 10.0%,
respectively. Buy-side clients account for 83.2% of ASV and the
remainder is derived from sell-side firms that perform mergers and
acquisitions (“M&A”) advisory work, capital markets services
and equity research. Supplementary tables covering buy-side and
sell-side ASV growth rates are presented on page 10 of this press
release.
Financial Highlights – First Quarter of Fiscal
2016
- ASV from U.S. operations was $747 million and $362 million was
related to non-U.S. operations.
- U.S. revenues were $182.2 million. Excluding revenues from
acquisitions completed within the past 12 months, the U.S. growth
rate was 8.2%.
- Non-U.S. revenues rose to $88.3 million. Excluding the impact
of foreign currency and acquisitions completed within the past 12
months, the international growth rate was 10.6%.
- Adjusted operating margin was 32.5%, compared to 33.1% in the
year ago first quarter. The current year adjusted operating margin
excludes $0.7 million of acquisition-related expenses. Portware's
operations included in FactSet’s first quarter further reduced the
operating margin by 110 basis points.
- The effective tax rate for the first quarter was 31.4%,
compared to 30.8% a year ago and 30.3% at August 31, 2015. The
increase in the effective tax rate from the fourth quarter of
fiscal 2015 was due to the U.S. Federal R&D tax credit not
being re-enacted by November 30, 2015.
- Quarterly free cash flow was $56.7 million.
Operational Highlights – First Quarter of Fiscal
2016
- Client count rose by 30 and totaled 3,006 at November 30, 2015,
representing the highest first quarter add in four years.
- User count, excluding Portware, grew 13.6% to 63,169,
reflecting 964 net new users.
- Annual client retention was greater than 95% of ASV. When
expressed as a percentage of clients, annual retention increased to
95%, up from 93% in the prior year first quarter. The current
quarter client retention rate is FactSet’s highest ever.
- Employee count was 7,933 at November 30, 2015, up 7.8% in the
past three months. The acquisition of Portware added 166 employees
located in its New York, London, Hong Kong, and Hyderabad, India
offices. Organic headcount growth in the first quarter was broad
based throughout each department and within each geographic region.
Excluding the acquired Portware workforce, headcount increased 5.5%
since August 31, 2015 and was up 12.8% from a year ago.
- Capital expenditures were $14.4 million, of which $8.1 million
related to the buildout of the Company’s New York office.
- A regular quarterly dividend of $18.2 million or $0.44 per
share was paid on December 15, 2015, to common stockholders of
record as of November 30, 2015.
- Common shares outstanding were 41.4 million at November 30,
2015.
Portware AcquisitionOn October 16, 2015,
FactSet acquired all the issued and outstanding membership
interests of Portware, LLC for cash consideration of $265 million.
Based in New York City, Portware was a privately held company and
is a leading provider of multi-asset trade automation solutions for
mega and large global asset managers. FactSet borrowed $265 million
under its revolving credit facility to finance the
acquisition. Following the closing of the acquisition on
October 16, 2015, FactSet now carries $300 million in total debt
under its amended revolving credit facility with Bank of America at
an interest rate of one-month LIBOR plus 0.75%. The credit facility
has a three-year term and may be expanded up to $400 million.
Portware’s operations reduced FactSet’s first quarter operating
margin by 110 basis points and diluted earnings per share by $0.03.
Excluding amortization of acquired intangible assets, the Portware
acquisition was breakeven in the just completed first quarter.
For the second quarter of fiscal 2016, Portware is expected to
reduce GAAP diluted earnings per share by $0.03. FactSet forecasts
Portware to be accretive to quarterly GAAP diluted EPS by the first
quarter of fiscal 2017.
Share Repurchase Program and
AuthorizationFactSet repurchased 250,000 shares for $41.9
million during the first quarter. On December 14, 2015, the Board
of Directors of FactSet approved a $250 million expansion of the
existing share repurchase program. Including this expansion, $342.3
million is now available for future share repurchases. In the past
12 months, FactSet has returned $318.4 million to stockholders in
the form of share repurchases and regular quarterly cash dividends,
funded entirely by cash generated from operations.
U.S. Federal R&D Tax CreditThe U.S. Federal
R&D tax credit expired on December 31, 2014 and was not
extended as of November 30, 2015, the end of FactSet’s first
quarter. Although the U.S. Congress recently advanced bills to
retroactively re-enact the tax credit, these bills have not been
signed into law. Accordingly, FactSet did not recognize any income
tax benefits from the Federal R&D tax credit during the just
completed first quarter. It is important to note that the Federal
R&D tax credit was never made a permanent credit, resulting in
10 expirations and 16 extensions since 1981. Only once in its
34-year history was the tax credit not retroactively re-enacted
(from July 1, 1995 through June 30, 1996). However, the timing of
FactSet’s ability to recognize the Federal R&D tax credit has
been volatile due to the number of lapses and retroactive
re-enactments. The impact of the Federal R&D tax credit to
FactSet on an annual basis is estimated to be $0.19 per share. If
FactSet had been able to recognize the full value of income tax
benefits from the Federal R&D tax credit, diluted EPS in each
of the first quarters of fiscal 2016 and 2015 would have increased
by $0.05 per share, and the effective tax rate would have declined
to 29.1% and 28.3%, respectively.
Business Outlook
The following forward-looking statements reflect FactSet’s
expectations as of today’s date. Given the risk factors,
uncertainties and assumptions discussed below, actual results may
differ materially. FactSet does not intend to update its
forward-looking statements until its next quarterly results
announcement, other than in publicly available statements.
Second Quarter Fiscal 2016 Expectations
- Revenues are expected to range between $280 million and $286
million.
- Operating margin is expected to range between 31.0% and 32.0%,
which includes a 160 basis point reduction from the recent
acquisition of Portware.
- The annual effective tax rate is expected to range between
28.5% and 29.5% and assumes the U.S. Federal R&D tax credit
will be re-enacted by the end of the second quarter and could be
retroactively applied to the period beginning January 1, 2015 and
ending on December 31, 2016.
- Diluted EPS should range between $1.49 and $1.53. If the U.S.
Federal R&D tax credit is not re-enacted by February 29, 2016,
each end of the diluted EPS range would decrease by $0.05 per
share.
Conference Call
The Company will host a conference call today, December 15, 2015
at 11:00 a.m. Eastern Time to review the first quarter fiscal 2016
earnings release. To listen, please visit the investor relations
section of the Company’s website at www.factset.com.
Forward-looking StatementsThis news release
contains forward-looking statements based on management's current
expectations, estimates and projections. All statements that
address expectations or projections about the future, including
statements about the Company's strategy for growth, product
development, market position, subscriptions, expected expenditures
and financial results are forward-looking statements.
Forward-looking statements may be identified by words like
"expects," "anticipates," "plans," "intends," "projects," "should,"
"indicates," "continues," "subscriptions" and similar expressions.
These statements are not guarantees of future performance and
involve a number of risks, uncertainties and assumptions. Many
factors, including those discussed more fully elsewhere in this
release and in FactSet's filings with the Securities and Exchange
Commission, particularly its latest annual report on Form 10-K and
quarterly reports on Form 10-Q, as well as others, could cause
results to differ materially from those stated. These factors
include, but are not limited to: the current status of the global
economy; the ability to integrate newly acquired companies and
businesses; the stability of global securities markets; the ability
to hire qualified personnel; the maintenance of the Company's
leading technological position; the impact of global market trends
on the Company's revenue growth rate and future results of
operations; the negotiation of contract terms with corporate
vendors, data suppliers and potential landlords; the retention of
key clients; the successful resolution of ongoing audits by tax
authorities; the continued employment of key personnel; the absence
of U.S. or foreign governmental regulation restricting
international business; and the sustainability of historical levels
of profitability and growth rates in cash flow generation.
About Adjusted Financial MeasuresFinancial
measures in accordance with U.S. generally accepted accounting
principles (“GAAP”) including operating income, net income and
diluted earnings per share have been adjusted. Adjusted operating
income during the current year first quarter excludes $0.7 million
of professional fees related to the Portware acquisition. Adjusted
net income during the current year first quarter excludes the
after-tax expense of $0.5 million from professional fees related to
the Portware acquisition. Fiscal 2016 first quarter adjusted
diluted EPS of $1.44 excludes $0.01 from these acquisition-related
professional fees. FactSet uses these adjusted financial measures,
both in presenting its results to stockholders and the investment
community, and in its internal evaluation and management of the
business. The Company believes that these adjusted financial
measures and the information they provide 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. Investors may benefit from referring to these
adjusted financial measures in assessing the Company’s performance
and when planning, forecasting and analyzing future periods and may
also facilitate comparisons to its historical performance. The
presentation of this financial information is not intended to be
considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP.
About Non-GAAP Free Cash
Flow
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 recently
completed first quarter was $71.1 million of net cash provided by
operations and $14.4 million of capital expenditures. The
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 GAAP. FactSet uses this financial
measure, both in presenting its results to stockholders and the
investment community, and in the Company’s internal evaluation and
management of the business. Management believes that this financial
measure is useful to investors because it permits investors to view
the Company’s performance using the same metric that management
uses to gauge progress in achieving its goals and is an indication
of cash flow that may be available to fund further investments in
future growth initiatives.
About FactSet
FactSet, a leading provider of financial information and
analytics, helps the world’s best investment professionals
outperform. More than 63,000 users stay ahead of global market
trends, access extensive company and industry intelligence, and
monitor performance with FactSet’s desktop analytics, mobile
applications, and comprehensive data feeds. The Company has been
included in FORTUNE's Top 100 Best Companies to Work For, the
United Kingdom’s Great Places to Work and France’s Best Workplaces.
FactSet is listed on the New York Stock Exchange and NASDAQ
(NYSE:FDS) (NASDAQ:FDS). Learn more at www.factset.com, and follow
us on Twitter: www.twitter.com/factset.
FactSet
Research Systems Inc. |
|
|
|
Consolidated
Statements of Income – Unaudited |
Three Months Ended November 30, |
|
(In thousands, except per
share data) |
|
2015 |
|
|
|
2014 |
|
|
|
|
|
Revenues |
$ |
270,504 |
|
|
$ |
242,676 |
|
|
|
|
|
Operating expenses |
|
|
|
Cost of
services |
|
114,736 |
|
|
|
97,543 |
|
Selling,
general and administrative |
|
68,460 |
|
|
|
64,873 |
|
Total operating
expenses |
|
183,196 |
|
|
|
162,416 |
|
|
|
|
|
Operating income |
|
87,308 |
|
|
|
80,260 |
|
|
|
|
|
Other income, net |
|
93 |
|
|
|
430 |
|
Income before income
taxes |
|
87,401 |
|
|
|
80,690 |
|
|
|
|
|
Provision for income
taxes |
|
27,436 |
|
|
|
24,830 |
|
Net income |
$ |
59,965 |
|
|
$ |
55,860 |
|
|
|
|
|
Diluted earnings per
common share |
$ |
1.43 |
|
|
$ |
1.32 |
|
|
|
|
|
Diluted weighted average
common shares |
|
42,063 |
|
|
|
42,340 |
|
FactSet
Research Systems Inc. |
|
|
Consolidated Statements of
Comprehensive Income – Unaudited |
|
|
|
|
|
Three Months
Ended November 30, |
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
59,965 |
|
|
$ |
55,860 |
|
|
|
|
|
Other comprehensive income
(loss), net of tax |
|
|
|
Net
unrealized loss on cash flow hedges* |
|
(416 |
) |
|
|
(112 |
) |
Foreign
currency translation adjustments |
|
(6,386 |
) |
|
|
(13,555 |
) |
Other comprehensive (loss)
income |
|
(6,802 |
) |
|
|
(13,667 |
) |
Comprehensive income |
$ |
53,163 |
|
|
$ |
42,193 |
|
|
|
|
|
* For the three months ended November 30, 2015,
the unrealized loss on cash flow hedges was net of tax benefits of
$244. For the three months ended November 30, 2014, the unrealized
loss on cash flow hedges was net of tax benefits of $67.
FactSet
Research Systems Inc. |
|
|
|
Consolidated
Balance Sheets - Unaudited |
|
|
|
|
|
November 30, |
|
August 31, |
|
(In
thousands) |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
180,148 |
|
|
$ |
158,914 |
|
|
Investments |
|
23,145 |
|
|
|
23,497 |
|
|
Accounts receivable, net of reserves |
|
98,630 |
|
|
|
95,064 |
|
|
Prepaid taxes |
|
|
- |
|
|
|
4,808 |
|
|
Deferred taxes |
|
|
2,524 |
|
|
|
2,105 |
|
|
Prepaid expenses and other current assets |
|
|
16,401 |
|
|
|
19,786 |
|
|
|
Total current
assets |
|
|
320,848 |
|
|
|
304,174 |
|
|
Property, equipment, and leasehold improvements, net |
|
69,717 |
|
|
|
59,264 |
|
|
Goodwill |
|
|
|
498,636 |
|
|
|
308,287 |
|
|
Intangible assets, net |
|
|
|
111,934 |
|
|
|
40,052 |
|
|
Deferred taxes |
|
|
|
11,629 |
|
|
|
20,599 |
|
|
Other assets |
|
|
|
4,923 |
|
|
|
4,295 |
|
|
|
TOTAL
ASSETS |
|
|
$ |
1,017,687 |
|
|
$ |
736,671 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
Accounts payable and accrued expenses |
$ |
36,525 |
|
|
$ |
33,880 |
|
|
Accrued compensation |
|
|
22,379 |
|
|
|
44,916 |
|
|
Deferred fees |
|
|
40,801 |
|
|
|
38,488 |
|
|
Taxes payable |
|
|
10,311 |
|
|
|
3,755 |
|
|
Deferred taxes |
|
|
507 |
|
|
|
562 |
|
|
Dividends payable |
|
|
18,208 |
|
|
|
18,179 |
|
|
|
Total current
liabilities |
|
|
128,731 |
|
|
|
139,780 |
|
|
Deferred taxes |
|
|
|
1,483 |
|
|
|
1,697 |
|
|
Taxes payable |
|
|
|
7,109 |
|
|
|
6,776 |
|
|
Long-term debt |
|
300,000 |
|
|
|
35,000 |
|
|
Deferred rent and other non-current liabilities |
|
22,595 |
|
|
|
21,834 |
|
|
|
TOTAL
LIABILITIES |
|
$ |
459,918 |
|
|
$ |
205,087 |
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
Common
stock |
|
$ |
507 |
|
|
$ |
503 |
|
|
|
Additional
paid-in capital |
|
577,921 |
|
|
|
542,355 |
|
|
|
Treasury
stock, at cost |
|
|
(1,033,211 |
) |
|
|
(988,873 |
) |
|
|
Retained
earnings |
|
|
1,063,406 |
|
|
|
1,021,651 |
|
|
|
Accumulated
other comprehensive loss |
|
|
|
(50,854 |
) |
|
|
(44,052 |
) |
|
|
TOTAL
STOCKHOLDERS’ EQUITY |
|
|
557,769 |
|
|
|
531,584 |
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
1,017,687 |
|
|
$ |
736,671 |
|
|
FactSet
Research Systems Inc. |
|
|
|
|
Consolidated
Statements of Cash Flows - Unaudited |
|
(In
thousands) |
Three Months Ended November
30, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
CASH FLOWS
FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
Net
income |
|
$ |
59,965 |
|
|
$ |
55,860 |
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities |
|
|
|
|
Depreciation and amortization |
|
8,437 |
|
|
|
8,216 |
|
|
Stock-based compensation expense |
|
6,462 |
|
|
|
5,277 |
|
|
Deferred income taxes |
|
2,388 |
|
|
|
341 |
|
|
Gain on
sale of assets |
|
- |
|
|
|
24 |
|
|
Tax
benefits from share-based payment arrangements |
|
(9,083 |
) |
|
|
(2,458 |
) |
|
Changes in assets and liabilities, net of effects of
acquisition |
|
|
|
|
Accounts receivable, net of reserves |
|
|
|
1,599 |
|
|
|
1,627 |
|
|
Accounts payable and accrued expenses |
|
|
|
1,056 |
|
|
|
4,548 |
|
|
Accrued compensation |
|
(23,073 |
) |
|
|
(23,061 |
) |
|
Deferred fees |
|
(2,588 |
) |
|
|
(1,696 |
) |
|
Taxes payable, net of prepaid taxes |
|
20,561 |
|
|
|
23,667 |
|
|
Prepaid expenses and other assets |
|
3,998 |
|
|
|
(1,011 |
) |
|
Deferred rent and other non-current liabilities |
|
1,255 |
|
|
|
(166 |
) |
|
Other working capital accounts, net |
|
110 |
|
|
|
- |
|
|
Net cash
provided by operating activities |
|
|
71,087 |
|
|
|
71,168 |
|
|
|
|
|
|
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES |
|
|
|
|
|
Acquisition
of business, net of cash acquired |
|
|
(264,087 |
) |
|
|
- |
|
|
|
Purchases of
investments |
|
|
(12,131 |
) |
|
|
(12,437 |
) |
|
|
Proceeds from
sales of investments |
|
|
12,423 |
|
|
|
7,535 |
|
|
|
Purchases of
property, equipment and leasehold improvements, net of proceeds
from dispositions |
|
|
(14,385 |
) |
|
|
(4,814 |
) |
|
|
Net cash used
in investing activities |
|
|
(278,180 |
) |
|
|
(9,716 |
) |
|
|
|
|
|
|
|
CASH FLOWS
FROM FINANCING ACTIVITIES |
|
|
|
|
|
Dividend
payments |
|
|
(18,053 |
) |
|
|
(16,184 |
) |
|
Repurchase of
common stock |
|
|
(44,339 |
) |
|
|
(50,539 |
) |
|
Proceeds from
debt |
|
|
|
265,000 |
|
|
|
- |
|
|
Debt issuance
costs |
|
|
|
(12 |
) |
|
|
- |
|
|
Proceeds from
employee stock plans |
|
|
|
20,025 |
|
|
|
7,381 |
|
|
Tax benefits
from share-based payment arrangements |
|
|
|
9,083 |
|
|
|
2,458 |
|
|
Net cash
provided by (used in) financing activities |
|
|
|
231,704 |
|
|
|
(56,884 |
) |
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
|
|
(3,377 |
) |
|
|
(5,711 |
) |
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents |
|
|
|
21,234 |
|
|
|
(1,143 |
) |
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period |
|
|
|
158,914 |
|
|
|
116,378 |
|
|
Cash and cash
equivalents at end of period |
|
|
$ |
180,148 |
|
|
$ |
115,235 |
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Adjusted Financial
MeasuresFinancial measures in accordance with U.S. GAAP
including operating income, net income and diluted earnings per
share have been adjusted below. FactSet uses these adjusted
financial measures, both in presenting its results to stockholders
and the investment community, and in its internal evaluation and
management of the business. The Company believes that these
adjusted financial measures and the information they provide 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. Adjusted measures may also
facilitate comparisons to FactSet’s historical performance.
(Unaudited) |
Three Months Ended November 30, |
|
(In thousands, except per
share data) |
|
2015 |
|
|
2014 |
|
|
GAAP Operating income |
$ |
87,308 |
|
$ |
80,260 |
|
|
|
Professional fees related
to the Portware acquisition (a) |
|
690 |
|
|
- |
|
|
|
Adjusted operating income |
$ |
87,998 |
|
$ |
80,260 |
|
9.6 |
% |
|
|
|
|
|
GAAP Net income |
$ |
59,965 |
|
$ |
55,860 |
|
|
|
Professional fees related
to the Portware acquisition (b) |
|
473 |
|
|
- |
|
|
|
Adjusted net income |
$ |
60,438 |
|
$ |
55,860 |
|
8.2 |
% |
|
|
|
|
|
Adjusted Diluted earnings
per common share |
$ |
1.44 |
|
$ |
1.32 |
|
9.1 |
% |
Weighted average common shares (Diluted) |
|
42,063 |
|
|
42,340 |
|
|
|
(a) GAAP operating income in the first quarter of fiscal 2016
was adjusted to exclude $0.7 million of professional fees related
to the Portware acquisition, which was completed on October 16,
2015.
(b) For the purposes of calculating adjusted net income and
adjusted diluted earnings per share, the pre-tax professional fees
total of $0.7 million was taxed at the quarterly effective tax rate
of 31.4%.
Supplementary Schedules of Historical ASV by Client
TypeThe following table presents the percentages and
growth rates of ASV by client type, excluding currency, and may be
useful to facilitate historical comparisons.
|
Q1’16 |
Q4’15 |
Q3’15 |
Q2‘15 |
Q1‘15 |
Q4‘14 |
Q3’14 |
Q2‘14 |
%
of ASV from buy-side clients |
|
83.2 |
% |
|
82.5 |
% |
|
82.8 |
% |
|
82.8 |
% |
|
82.5 |
% |
|
82.6 |
% |
|
83.1 |
% |
|
82.7 |
% |
%
of ASV from sell-side clients |
|
16.8 |
% |
|
17.5 |
% |
|
17.2 |
% |
|
17.2 |
% |
|
17.5 |
% |
|
17.4 |
% |
|
16.9 |
% |
|
17.3 |
% |
|
|
|
|
|
|
|
|
|
ASV
Growth rate from buy-side clients |
|
9.3 |
% |
|
9.0 |
% |
|
8.5 |
% |
|
8.7 |
% |
|
8.9 |
% |
|
8.5 |
% |
|
8.0 |
% |
|
6.4 |
% |
ASV
Growth rate from sell-side clients |
|
10.0 |
% |
|
9.8 |
% |
|
10.9 |
% |
|
7.9 |
% |
|
6.7 |
% |
|
1.6 |
% |
|
0.0 |
% |
|
(0.5 |
%) |
ASV
Growth rate from all clients |
|
9.4 |
% |
|
9.2 |
% |
|
8.9 |
% |
|
8.5 |
% |
|
8.5 |
% |
|
7.3 |
% |
|
6.8 |
% |
|
5.5 |
% |
The following table presents the calculation of the
above-mentioned growth rates by client type for the first quarter
of fiscal 2016.
(In thousands) |
November 30, 2015 2014 |
Q1 2016 ASV Growth Rate |
|
|
As
reported ASV |
$ |
1,108.7 |
|
$ |
970.2 |
|
|
|
|
Less acquired ASV (a) |
|
(49.0 |
) |
|
- |
|
|
|
|
Currency impact (b) |
|
1.8 |
|
|
- |
|
|
|
|
Organic ASV total |
$ |
1,061.5 |
|
$ |
970.2 |
|
|
9.4 |
% |
|
|
Buy-side |
$ |
874.7 |
|
$ |
800.4 |
|
|
9.3 |
% |
|
|
Sell-side |
$ |
186.8 |
|
$ |
169.8 |
|
|
10.0 |
% |
|
|
|
(a) Acquired
ASV from acquisitions completed within the last 12
months. |
(b) The
negative impact from foreign currency movements over the past 12
months was added back in order to calculate total organic ASV. The
foreign currency effect was primarily from ASV billed in Japanese
Yen, which was negatively impacted by a decline in the Japanese Yen
vs. the U.S. dollar. |
Reconciliation of Non-GAAP Financial
MeasuresFinancial measures in accordance with U.S. GAAP
including operating income, net income and diluted earnings per
share have been adjusted below.
|
|
|
Three
Months Ended November 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
(Condensed and Unaudited) |
GAAP |
Professional fees related to the Portware Acquisition
(b) |
Adjusted |
YoY% Change |
Stock-Based Compensation |
Amortization of Intangible Assets |
Non-GAAP |
|
Operating Income |
$ |
87,308 |
|
$ |
690 |
|
$ |
87,998 |
|
|
9.6 |
% |
$ |
6,462 |
|
$ |
2,922 |
|
$ |
97,382 |
|
|
Net
Income (a) |
$ |
59,965 |
|
$ |
473 |
|
$ |
60,438 |
|
|
8.2 |
% |
$ |
4,433 |
|
$ |
2,004 |
|
$ |
66,875 |
|
|
Diluted EPS (c) |
$ |
1.43 |
|
$ |
0.01 |
|
$ |
1.44 |
|
|
9.1 |
% |
$ |
0.11 |
|
$ |
0.05 |
|
$ |
1.59 |
|
|
Weighted Average Shares |
|
42,063 |
|
|
|
42,063 |
|
|
|
|
|
42,063 |
|
|
(a) For the purposes of calculating non-GAAP net income and
non-GAAP diluted EPS, stock-based compensation expense and the
amortization of intangible assets were taxed at the current year
annual effective tax rate of 31.4%.
(b) GAAP operating income excludes $0.7 million of professional
fees related to the Portware acquisition. These professional fees
reduced net income by $0.5 million, net of tax, and reduced diluted
earnings per share by $0.01.
(c) The sum of the non-GAAP diluted earnings per share may not
equal the totals above due to rounding.
Contact: Rachel Stern
FactSet Research Systems Inc.
203.810.1000
FactSet Research Systems (NYSE:FDS)
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