- 1Q16 revenue of $816.1 million down 6%
from 1Q15
- 1Q16 EPS of $0.93 down 16% from
1Q15
- FY 2016 EPS guidance now $4.55 to
$4.65, including $0.02 dilution from the acquisition of GGY
Moody’s Corporation (NYSE:MCO) today announced results for the
first quarter of 2016 and updated its outlook for full year
2016.
“Reduced global bond issuance in the first quarter weighed on
Moody’s financial performance despite strong results at Moody’s
Analytics, which is not sensitive to debt issuance activity,” said
Raymond McDaniel, President and Chief Executive Officer of Moody’s.
“Given market conditions, we have scaled back our revenue and
earnings expectations for full year 2016, and are managing our cost
base accordingly.”
FIRST QUARTER 2016
HIGHLIGHTS
Moody’s Corporation reported revenue of $816.1 million for the
three months ended March 31, 2016, down 6% from $865.6 million for
the same period of 2015.
Operating expense totaled $512.0 million, up 4% from $494.3
million, and operating income was $304.1 million, down 18% from
$371.3 million. Adjusted operating income (operating income before
depreciation and amortization) was $334.0 million, down 16% from
$399.9 million in the prior-year period. Operating margin for the
first quarter of 2016 was 37.3% and adjusted operating margin was
40.9%.
EPS of $0.93 was down 16% from the first quarter of 2015.
MCO FIRST QUARTER 2016 REVENUE DOWN
6%
Moody’s Corporation reported global revenue of $816.1 million
for the first quarter of 2016, down 6% from the first quarter of
2015. Foreign currency translation unfavorably impacted revenue by
2%.
US revenue was $480.0 million, down 4% from $499.8 million,
while non-US revenue was $336.1 million, down 8% from $365.8
million. Revenue generated outside the US constituted 41% of total
revenue, versus 42% in the prior-year period.
MIS First Quarter Revenue Down
13%
Global revenue for Moody’s Investors Service (MIS) for the first
quarter of 2016 was $525.1 million, down 13% from $602.3 million in
the prior-year period. Foreign currency translation unfavorably
impacted MIS revenue by 1%. US revenue was $336.0 million, down
10%, while non-US revenue was $189.1 million, down 18%.
Global corporate finance revenue was $240.3 million, down 20%
from the prior-year period. This result reflected lower levels of
global speculative-grade issuance as well as a decline in the
number of investment-grade bond offerings. US corporate finance
revenue decreased 10%, while non-US revenue decreased 36%.
Global structured finance revenue totaled $90.6 million, down
11% from a year earlier, as US securitization activity slowed,
primarily within the CMBS and CLO markets. US structured finance
revenue was down 15%, while non-US revenue was flat.
Global financial institutions revenue was $94.9 million, up 1%
compared to the prior-year period. US financial institutions
revenue was down 3%, while non-US revenue was up 4%.
Global public, project and infrastructure finance revenue was
$91.5 million, down 9% from the prior-year period as US project
finance activity and European infrastructure-related issuance fell
amid choppy market conditions. US public, project and
infrastructure finance revenue was down 6%, while non-US revenue
was down 14%.
MA First Quarter Revenue Up
11%
Global revenue for Moody’s Analytics (MA) for the first quarter
of 2016 was $291.0 million, up 11% from the first quarter of 2015.
Foreign currency translation unfavorably impacted MA revenue by 2%.
MA’s US revenue was $144.0 million, up 12%, and its non-US revenue
was $147.0 million, up 9%.
Global revenue from research, data and analytics (RD&A) was
$164.9 million, up 10% from the prior-year period. Growth was
mainly due to strong new sales of research and data as well as
record customer retention. US RD&A revenue was up 14%, while
non-US revenue was up 5%.
Global enterprise risk solutions (ERS) revenue of $89.5 million
was up 16%, primarily from accelerated project deliveries. US ERS
revenue was up 14%, while non-US revenue was up 17%.
Global revenue from professional services of $36.6 million was
flat to the prior-year period. US professional services revenue was
down 6%, while non-US revenue was up 3%.
FIRST QUARTER 2016 EXPENSE UP
4%
Expenses for the first quarter of 2016 were $512.0 million, up
4% from the prior-year period. The increase was primarily due to
higher compensation costs in MA, reflecting additional headcount
required to support business growth, as well as Moody’s ongoing
technology investments. Expenses in MIS were down slightly compared
to the prior-year period. Foreign currency translation favorably
impacted expense by 2%.
Operating income was $304.1 million, down 18% from $371.3
million. The impact of foreign currency translation on operating
income was negligible. Adjusted operating income of $334.0 million
was down 16% from the prior-year period. The operating margin was
37.3%, down from 42.9%. The adjusted operating margin was 40.9%,
down from 46.2%.
Moody’s effective tax rate was 32.3% for first quarter of 2016,
compared with 32.9% for the prior-year period.
2016 CAPITAL ALLOCATION AND
LIQUIDITY
$334 Million Returned to Shareholders
in First Quarter
During the first quarter of 2016, Moody’s repurchased 2.9
million shares at a total cost of $262.1 million, or an average
cost of $89.83 per share, and issued 1.6 million shares under its
annual employee stock-based compensation plans. Moody’s also paid
$72.1 million in dividends during the quarter.
Outstanding shares as of March 31, 2016 totaled 194.3 million,
down 4% from the prior year. As of March 31, 2016, Moody’s had $1.2
billion of share repurchase authority remaining.
At quarter-end, Moody’s had $3.4 billion of outstanding debt and
$1.0 billion of additional debt capacity available under its
revolving credit facility. Total cash, cash equivalents and
short-term investments at quarter-end were $2.1 billion. Free cash
flow in the first three months of 2016 was $211.0 million, down 13%
from the first three months of 2015, primarily due to the
year-over-year decline in net income and changes in working
capital.
ASSUMPTIONS AND OUTLOOK FOR FULL YEAR
2016
Moody’s outlook for 2016 is based on assumptions about many
macroeconomic and capital market factors, including interest rates,
foreign currency exchange rates, corporate profitability and
business investment spending, mergers and acquisitions, consumer
borrowing and securitization and the amount of debt issued. These
assumptions are subject to uncertainty, and results for the year
could differ materially from our current outlook. Our guidance
assumes foreign currency translation at end-of-quarter exchange
rates. Specifically, our forecast reflects exchange rates for the
British pound (£) of $1.44 to £1 and for the euro (€) of $1.14 to
€1.
MCO Full Year 2016
Outlook
Moody’s full year 2016 revenue is now expected to increase in
the low-single-digit percent range.
In response to this revised revenue outlook, Moody’s has reduced
its projected base business spending for the year by approximately
$50 million through expense management actions and reduced
incentive compensation. These savings allow the Company to maintain
guidance for operating expenses to increase in the mid-single-digit
percent range despite the addition of GGY’s operating expenses and
the negative impact of foreign currency translation.
Moody’s now projects an operating margin of approximately 41%,
while adjusted operating margin is still expected to be
approximately 45%. The effective tax rate is still expected to be
32% to 32.5%.
The Company now expects 2016 EPS of $4.55 to $4.65, inclusive of
$0.02 dilution from the March 2016 acquisition of GGY.
Free cash flow is now expected to be approximately $1 billion.
Moody’s still expects share repurchases to be approximately $1
billion, subject to available cash, market conditions and other
ongoing capital allocation decisions. Capital expenditures are now
expected to be approximately $125 million. Depreciation and
amortization expense is still expected to be approximately $130
million.
MIS Full Year 2016
Outlook
For MIS, Moody’s now expects 2016 revenue to be approximately
flat. US revenue is now expected to decrease in the
low-single-digit percent range, while non-US revenue is now
expected to increase in the low-single-digit percent range.
Corporate finance revenue is now expected to decrease in the
low-single-digit percent range.
Structured finance revenue is now expected to decrease in the
mid-single-digit percent range as a result of continued challenges
to US securitization activity.
Financial institutions revenue is still expected to increase in
the mid-single-digit percent range.
Public, project and infrastructure finance revenue is now also
expected to increase in the mid-single-digit percent range.
MA Full Year 2016
Outlook
For MA, 2016 revenue is now expected to increase in the
high-single-digit percent range. US revenue is now expected to
increase in the low-double-digit percent range, while non-US
revenue is now expected to increase in the mid-single-digit percent
range.
Research, data and analytics revenue is now expected to increase
in the high-single-digit percent range.
Enterprise risk solutions revenue is now expected to increase in
the high-single-digit percent range, including revenue associated
with the March 2016 acquisition of GGY.
Professional services revenue is still expected to decrease in
the low-single-digit percent range.
CONFERENCE CALL
Moody’s will hold a conference call to discuss its first quarter
of 2016 results and its updated 2016 outlook on April 29, 2016 at
11:30 a.m. EST. Individuals within the US and Canada can access the
call by dialing +1-877-400-0505. Other callers should dial
+1-719-234-7477. Please dial into the call by 11:20 a.m. EST. The
passcode for the call is “Moody’s Corporation.”
The teleconference will also be webcast with an accompanying
slide presentation which can be accessed through Moody's Investor
Relations website, http://ir.moodys.com under “Events &
Presentations”. The webcast will be available until 3:30 p.m. EST
on May 28, 2016.
A replay of the teleconference will be available from 3:30 p.m.
EST, April 29, 2016 until 3:30 p.m. EST, May 28, 2016. The replay
can be accessed from within the United States and Canada by dialing
+1-888-203-1112. Other callers can access the replay at
+1-719-457-0820. The replay confirmation code is 2495047.
*****
ABOUT MOODY'S
CORPORATION
Moody's is an essential component of the global capital markets,
providing credit ratings, research, tools and analysis that
contribute to transparent and integrated financial markets. Moody’s
Corporation (NYSE: MCO) is the parent company of Moody's Investors
Service, which provides credit ratings and research covering debt
instruments and securities, and Moody's Analytics, which offers
leading-edge software, advisory services and research for credit
and economic analysis and financial risk management. The
corporation, which reported revenue of $3.5 billion in 2015,
employs approximately 10,800 people worldwide and maintains a
presence in 36 countries. Further information is available at
www.moodys.com.
“Safe Harbor” Statement under the
Private Securities Litigation Reform Act of 1995
Certain statements contained in this release are forward-looking
statements and are based on future expectations, plans and
prospects for Moody’s business and operations that involve a number
of risks and uncertainties. Moody’s outlook for 2016 and other
forward-looking statements in this release are made as of April 29,
2016, and the Company disclaims any duty to supplement, update or
revise such statements on a going-forward basis, whether as a
result of subsequent developments, changed expectations or
otherwise. In connection with the “safe harbor” provisions of the
Private Securities Litigation Reform Act of 1995, the Company is
identifying certain factors that could cause actual results to
differ, perhaps materially, from those indicated by these
forward-looking statements. Those factors, risks and uncertainties
include, but are not limited to, the current world-wide credit
market disruptions and economic slowdown, which is affecting and
could continue to affect the volume of debt and other securities
issued in domestic and/or global capital markets; other matters
that could affect the volume of debt and other securities issued in
domestic and/or global capital markets, including credit quality
concerns, changes in interest rates and other volatility in the
financial markets; the level of merger and acquisition activity in
the US and abroad; the uncertain effectiveness and possible
collateral consequences of US and foreign government initiatives to
respond to the current world-wide credit market disruptions and
economic slowdown; concerns in the marketplace affecting Moody’s
credibility or otherwise affecting market perceptions of the
integrity or utility of independent credit agency ratings; the
introduction of competing products or technologies by other
companies; pricing pressure from competitors and/or customers; the
level of success of new product development and global expansion;
the impact of regulation as an NRSRO, the potential for new US,
state and local legislation and regulations, including provisions
in the Financial Reform Act and regulations resulting from that
Act; the potential for increased competition and regulation in the
EU and other foreign jurisdictions; exposure to litigation related
to Moody’s rating opinions, as well as any other litigation,
government and regulatory proceedings, investigations and inquiries
to which the Company may be subject from time to time; provisions
in the Financial Reform Act legislation modifying the pleading
standards, and EU regulations modifying the liability standards,
applicable to credit rating agencies in a manner adverse to credit
rating agencies; provisions of EU regulations imposing additional
procedural and substantive requirements on the pricing of services;
the possible loss of key employees; failures or malfunctions of
Moody’s operations and infrastructure; any vulnerabilities to cyber
threats or other cybersecurity concerns; the outcome of any review
by controlling tax authorities of the Company’s global tax planning
initiatives; the outcome of those Legacy Tax Matters and legal
contingencies that relate to the Company, its predecessors and
their affiliated companies for which Moody’s has assumed portions
of the financial responsibility; exposure to potential criminal
sanctions or civil remedies if the Company fails to comply with
foreign and US laws and regulations that are applicable in the
jurisdictions in which the Company operates, including sanctions
laws, anti-corruption laws and local laws prohibiting corrupt
payments to government officials; the impact of mergers,
acquisitions or other business combinations and the ability of the
Company to successfully integrate acquired businesses; currency and
foreign exchange volatility; the level of future cash flows; the
levels of capital investments; and a decline in the demand for
credit risk management tools by financial institutions; and other
risk factors as discussed in the Company’s annual report on Form
10-K for the year ended December 31, 2015 and in other filings made
by the Company from time to time with the Securities and Exchange
Commission.
Table 1 - Consolidated Statements of Operations
(Unaudited) Three Months
Ended March 31, 2016 2015 Amounts
in millions, except per share amounts
Revenue $ 816.1 $
865.6 Expenses: Operating 249.2 244.4 Selling,
general and administrative 232.9 221.3 Depreciation and
amortization 29.9 28.6
Total expenses
512.0 494.3
Operating income 304.1
371.3 Non-operating (expense) income, net Interest
expense, net (34.1) (29.3) Other non-operating income, net
5.6 2.5 Total non-operating expense, net (28.5)
(26.8)
Income before provision for income taxes
275.6 344.5 Provision for income taxes 89.0
113.2 Net income
186.6 231.3 Less: net
income attributable to noncontrolling interests 2.2
1.2
Net income attributable to Moody's
Corporation
$ 184.4 $ 230.1
Earnings per share
attributable to Moody's common shareholders Basic $ 0.95 $ 1.14
Diluted $ 0.93 $ 1.11
Weighted average
number of shares outstanding Basic 195.0 202.7 Diluted
197.9 206.5
Table 2-
Supplemental Revenue Information (Unaudited)
Three Months Ended March 31, Amounts in
millions
2016 2015
Moody's Investors Service Corporate Finance $
240.3 $ 298.7 Structured Finance 90.6 101.3 Financial Institutions
94.9 93.8 Public, Project and Infrastructure Finance 91.5 100.7 MIS
Other 7.8 7.8 Intersegment royalty 24.0 22.3
Sub-total MIS 549.1 624.6 Eliminations (24.0) (22.3)
Total MIS revenue 525.1 602.3
Moody's
Analytics Research, Data and Analytics 164.9 149.6 Enterprise
Risk Solutions 89.5 77.1 Professional Services 36.6 36.6
Intersegment revenue 2.8 3.3 Sub-total MA 293.8 266.6
Eliminations (2.8) (3.3) Total MA revenue
291.0 263.3
Total Moody's Corporation revenue
$ 816.1 $ 865.6
Moody's Corporation
revenue by geographic area United States $ 480.0 $ 499.8
International 336.1 365.8
$
816.1 $ 865.6 Table 3 -
Selected Consolidated Balance Sheet Data (Unaudited)
March 31, December 31,
2016 2015* Amounts in millions Cash and cash
equivalents $ 1,576.1 $ 1,757.4 Short-term investments 490.6 474.8
Total current assets 3,085.3 3,243.1 Non-current assets 2,029.6
1,859.9 Total assets 5,114.9 5,103.0 Total current liabilities
1,151.9 1,218.5
Total debt
3,428.6 3,380.6 Other long-term liabilities 885.9 836.9 Total
shareholders' (deficit) (351.5) (333.0) Total liabilities and
shareholders' equity 5,114.9 5,103.0 Actual number of shares
outstanding 194.3 196.1
*In the first quarter of 2016, the Company adopted a new accounting
update on a retrospective basis which requires debt issuance costs
to be presented as a reduction of debt rather than as an asset.
Accordingly, the Company reclassified debt issuance costs, which
were previously included in non-current assets, as a reduction of
total debt.
Table 4 - Selected Consolidated
Balance Sheet Data (Unaudited) Continued
Total debt consists of the following:
March 31, 2016
PrincipalAmount
Fair Value ofInterest Rate
Swap (1)
Unamortized(Discount)Premium
Unamortized DebtIssuance
Cost (2)
Carrying Value Notes Payable: 6.06% Series 2007-1
Notes due 2017
$ 300.0 $ - $
- $ (0.1) $ 299.9 5.50% 2010
Senior Notes, due 2020
500.0 22.1 (1.6)
(1.9) 518.6 4.50% 2012 Senior Notes, due 2022
500.0 - (2.7) (2.4) 494.9 4.875%
2013 Senior Notes, due 2024
500.0 - (2.2)
(3.0) 494.8 2.75% 2014 Senior Notes (5-Year), due
2019
450.0 10.2 (0.5) (2.2)
457.5 5.25% 2014 Senior Notes (30-Year), due 2044
600.0 - 3.4 (6.1) 597.3 1.75%
2015 Senior Notes, due 2027
569.8 -
- (4.2) 565.6 Total
long-term debt
$ 3,419.8 $ 32.3
$ (3.6) $ (19.9) $
3,428.6 December 31, 2015
PrincipalAmount
Fair Value ofInterest Rate
Swap (1)
Unamortized(Discount)Premium
Unamortized DebtIssuance
Cost (2)
Carrying Value Notes Payable: 6.06% Series 2007-1 Notes due
2017 $ 300.0 $ - $ - $ (0.2) $ 299.8 5.50% 2010 Senior Notes, due
2020 500.0 9.4 (1.6) (2.0) 505.8 4.50% 2012 Senior Notes, due 2022
500.0 - (2.8) (2.5) 494.7 4.875% 2013 Senior Notes, due 2024 500.0
- (2.3) (3.1) 494.6 2.75% 2014 Senior Notes (5-Year), due 2019
450.0 2.3 (0.5) (2.4) 449.4 5.25% 2014 Senior Notes (30-Year), due
2044 600.0 - 3.4 (6.2) 597.2 1.75% 2015 Senior Notes, due 2027
543.1 - - (4.0) 539.1 Total
long-term debt $ 3,393.1 $ 11.7 $ (3.8) $ (20.4) $ 3,380.6
(1) Reflects interest rate swaps on the 2010
Senior Notes and the 2014 Senior Notes (5-Year).
(2)
Pursuant to a new accounting update, unamortized debt issuance
costs are presented as a reduction to the carrying value of the
debt.
Table 5 - Non-operating (expense) income, net
Three Months Ended March 31,
Amounts in millions
2016
2015
Interest expense, net: Expense on borrowings
$
(34.6) $ (28.3) Income
2.9 1.9 UTPs and other tax
related liabilities
(2.8) (3.2) Interest capitalized
0.4 0.3
Total interest expense, net $
(34.1) $ (29.3)
Other non-operating (expense) income,
net: FX gain
$ 4.0 $ - Joint venture income
1.9 1.9 Other
(0.3) 0.6
Other
non-operating income, net 5.6 2.5
Total
non-operating expense, net $ (28.5) $ (26.8)
Table 6 - Financial Information by
Segment:
The table below presents revenue, adjusted operating income and
operating income by reportable segment. The Company defines
adjusted operating income as operating income excluding
depreciation and amortization.
Three Months
Ended March 31, 2016 2015
MIS MA
Eliminations Consolidated MIS
MA Eliminations
Consolidated Revenue
$ 549.1 $
293.8 $ (26.8) $ 816.1 $ 624.6 $
266.6 $ (25.6) $ 865.6
Operating, selling,general
andadministrativeexpense
278.6 230.3 (26.8)
482.1 281.3 210.0 (25.6) 465.7
Adjusted operatingincome
270.5 63.5 -
334.0 343.3 56.6 - 399.9
Depreciation andamortization
17.5
12.4
-
29.9
16.0
12.6
-
28.6
Operating income
$ 253.0 $ 51.1
$ - $ 304.1 $ 327.3 $ 44.0 $ - $ 371.3
Adjusted operatingmargin
49.3% 21.6% 40.9% 55.0% 21.2%
46.2% Operating margin
46.1% 17.4%
37.3% 52.4% 16.5% 42.9%
Table 7 - Transaction and Relationship
Revenue:
The tables below summarize the split between transaction and
relationship revenue. In the MIS segment, excluding MIS Other,
transaction revenue represents the initial rating of a new debt
issuance as well as other one-time fees while relationship revenue
represents the recurring monitoring of a rated debt obligation
and/or entities that issue such obligations, as well as revenue
from programs such as commercial paper, medium-term notes and shelf
registrations. In MIS Other, transaction revenue represents revenue
from professional services and outsourcing engagements and
relationship revenue represents subscription based revenues. In the
MA segment, relationship revenue represents subscription-based
revenues and software maintenance revenue. Transaction revenue in
MA represents software license fees and revenue from risk
management advisory projects, training and certification services,
and outsourced research and analytical engagements.
Three
Months Ended March 31, 2016 2015
Transaction Relationship Total
Transaction Relationship Total
Corporate Finance $151.0 $89.3 $240.3
$213.6 $85.1 $298.7 63% 37% 100% 72% 28% 100%
Structured Finance $49.8 $40.8 $90.6 $61.8 $39.5 $101.3 55% 45%
100% 61% 39% 100% Financial Institutions $37.0 $57.9 $94.9 $37.8
$56.0 $93.8 39% 61% 100% 40% 60% 100% Public, Project and
Infrastructure Finance $53.8 $37.7 $91.5 $64.4 $36.3 $100.7 59% 41%
100% 64% 36% 100% MIS Other $2.9 $4.9 $7.8 $3.3 $4.5 $7.8 37% 63%
100% 42% 58% 100%
Total MIS $294.5 $230.6
$525.1 $380.9 $221.4 $602.3
56% 44%
100% 63% 37% 100%
Moody's Analytics $69.3 $221.7
$291.0 $60.6 $202.7 $263.3
24% 76% 100%
23% 77% 100%
Total Moody's Corporation $363.8
$452.3 $816.1 $441.5 $424.1 $865.6
45%
55% 100% 51% 49% 100%
Non-GAAP Financial Measures:
The tables below reflect certain adjusted results that the SEC
defines as "non-GAAP financial measures" as well as a
reconciliation of each non-GAAP measure to its most directly
comparable GAAP measure. Management believes that such non-GAAP
financial measures, when read in conjunction with the Company's
reported results, can provide useful supplemental information for
investors analyzing period-to-period comparisons of the Company's
performance, facilitate comparisons to competitors' operating
results and to provide greater transparency to investors of
supplemental information used by management in its financial and
operational decision-making. These non-GAAP measures, as defined by
the Company, are not necessarily comparable to similarly defined
measures of other companies. Furthermore, these non-GAAP measures
should not be viewed in isolation or used as a substitute for other
GAAP measures in assessing the operating performance or cash flows
of the Company.
Table 8 - Adjusted Operating Income and
Adjusted Operating Margin:
The table below reflects a reconciliation of the Company’s
operating income and operating margin to adjusted operating income
and adjusted operating margin. The Company defines adjusted
operating income as operating income excluding depreciation and
amortization. The Company presents adjusted operating income
because management deems this metric to be a useful measure of
assessing the operating performance of Moody’s, measuring the
Company's ability to service debt, fund capital expenditures, and
expand its business. Adjusted operating income excludes
depreciation and amortization because companies utilize productive
assets of different ages and use different methods of both
acquiring and depreciating productive assets. Management believes
that the exclusion of this item, detailed in the reconciliation
below, allows for a more meaningful comparison of the Company’s
results from period to period and across companies. The Company
defines adjusted operating margin as adjusted operating income
divided by revenue.
Three Months Ended
March 31,
(amounts in millions)
2016 2015 Operating
income $
304.1 $ 371.3 Depreciation & amortization
29.9 28.6
Adjusted operating income $
334.0 $ 399.9
Operating margin 37.3% 42.9%
Adjusted operating margin 40.9% 46.2%
Year
Ended December 31, 2016 Operating margin guidance
Approximately 41% Depreciation & amortization
Approximately 4% Adjusted operating margin guidance
Approximately 45%
Table 9 - Free Cash Flow:
The table below reflects a reconciliation
of the Company’s net cash flows from operating activities to free
cash flow. The Company defines free cash flow as net cash provided
by operating activities minus payments for capital expenditures.
Management believes that free cash flow is a useful metric in
assessing the Company’s cash flows to service debt, pay dividends
and to fund acquisitions and share repurchases. Management deems
capital expenditures essential to the Company’s product and service
innovations and maintenance of Moody’s operational capabilities.
Accordingly, capital expenditures are deemed to be a recurring use
of Moody’s cash flow.
Three Months Ended
March 31,
(amounts in millions)
2016 2015
Net cash flows from operating activities $
237.3 $
261.8
Capital expenditures
(26.3) (19.0)
Free cash flow $
211.0 $ 242.8
Net cash used in investing activities $
(108.4) $ (49.3)
Net cash (used in) provided by financing
activities $
(339.2) $ 123.9
Year Ended
December 31,
2016
Net cash flows from operating activities guidance
Approximately $1.1 billion
Capital expenditures guidance
(Approximately $125 million) Free cash flow guidance
Approximately $1.0 billion
Table 10 - 2016 Outlook
Moody’s outlook for 2016 is based on
assumptions about many macroeconomic and capital market factors,
including interest rates, foreign currency exchange rates,
corporate profitability and business investment spending, merger
and acquisition activity, consumer borrowing and securitization and
the amount of debt issued. These assumptions are subject to
uncertainty and results for the year could differ materially from
our current outlook. Moody’s guidance assumes foreign currency
translation at end-of-quarter exchange rates. Specifically, our
forecast reflects exchange rates for the British pound (£) of $1.44
to £1 and for the euro (€) of $1.14 to €1.
Full-year 2016 Moody's Corporation guidance MOODY'S
CORPORATION Current guidance
Last publicly disclosed guidance on
February 5, 2016
Revenue increase in the low-single-digit percent
range growth in the mid-single-digit percent range
Operating expenses increase in the mid-single-digit percent range
NC Depreciation & amortization Approximately $130 million NC
Operating margin Approximately 41% Approximately 42% Adjusted
operating margin Approximately 45% NC Effective tax rate 32% -
32.5% NC EPS $4.55 to $4.65 $4.75 to $4.85 Capital expenditures
Approximately $125 million $125 - $135 million Free cash flow
Approximately $1 billion Approximately $1.1 billion Share
repurchases
Approximately $1 billion (subject to
available cash, marketconditions and other ongoing capital
allocation decisions)
NC
Full-year 2016
revenue guidance MIS Current
guidance
Last publicly disclosed guidance on
February 5, 2016
MIS global Approximately flat growth in the mid-single-digit
percent range MIS US decrease in the low-single-digit percent range
growth in the mid-single-digit percent range MIS non-US increase in
the low-single-digit percent range growth in the mid-single-digit
percent range CFG decrease in the low-single-digit percent range
flat SFG decrease in the mid-single-digit percent range growth in
the high-single-digit percent range FIG increase in the
mid-single-digit percent range NC PPIF increase in
the mid-single-digit percent range growth in the
high-single-digit percent range
MA
MA global increase in the high-single-digit
percent range growth in the mid-single-digit percent range MA US
increase in the low-double-digit percent range growth in the
high-single-digit percent range MA non-US increase in the
mid-single-digit percent range flat RD&A increase in the
high-single-digit percent range growth in the mid-single-digit
percent range ERS increase in the high-single-digit percent range
growth in the low-single-digit percent range PS
decrease in the low-single-digit percent range NC
NC- There is no difference between the Company's current
guidance and the last publicly disclosed guidance for this item.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160429005286/en/
Salli SchwartzGlobal Head of Investor Relations
andCommunications212.553.4862sallilyn.schwartz@moodys.comorKaterina
SoumilovaAssistant Vice PresidentCorporate
Communications212.553.1177katerina.soumilova@moodys.com
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