NEW YORK, April 30, 2019 /PRNewswire/ -- Nielsen
Holdings plc (NYSE: NLSN) today announced its first quarter 2019
results. Revenues were $1,563 million
for the first quarter of 2019, down 2.9% reported, but up 0.4% on a
constant currency basis, compared to the first quarter of 2018. Net
income per share on a diluted basis was $0.12 for the first quarter of 2019, compared to
net income per share on a diluted basis of $0.20 for the first quarter of 2018. Adjusted
earnings per share was $0.35 per
share for the first quarter of 2019, compared to $0.40 per share for the first quarter of 2018.
Cash flow from operations improved to $(43)
million for the first quarter of 2019, from $(117) million in the first quarter of 2018. Free
cash flow for the first quarter of 2019 was $(165) million, compared to $(245) million in the first quarter of 2018.
David Kenny, Chief Executive
Officer of Nielsen, commented, "Our first quarter results were
ahead of our expectations, reflecting solid execution and continued
focus on improving operational and financial rigor across Nielsen.
While I'm pleased with our first quarter results, we have a
significant opportunity to accelerate our growth rate over time as
we leverage and build on our incomparable data assets, our global
footprint, and the critical role we play in the media and FMCG
industries. We have begun our transformation into a truly
product-driven, technology organization, able to make faster,
bolder decisions that drive greater value for our clients and for
Nielsen."
Kenny continued, "The strategic review is ongoing and the Board
is focused on completing the process in as timely a manner as
possible. We remain focused on executing on our growth strategy,
and we're taking the right steps to position the company for both
near and long-term success in order to maximize value for all of
our shareholders."
First Quarter 2019 Operating Results
Revenues within the Nielsen Global Media segment for the first
quarter of 2019 increased 0.2% to $826
million, or 1.3% on a constant currency basis, compared to
the first quarter of 2018. Revenues in Audience Measurement
increased 1.5%, or 2.2% on a constant currency basis, primarily due
to continued client adoption of our Total Audience Measurement
system, partly offset by pressure in local television measurement.
Plan/Optimize revenues decreased 3.1%, or 0.9% on a constant
currency basis. Excluding the impact of acquisitions and one-time
items, Plan/Optimize revenues were flat on a constant currency
basis.
Revenues within the Nielsen Global Connect segment for the first
quarter of 2019 decreased 6.2% to $737
million, or 0.7% on a constant currency basis, compared to
the first quarter of 2018. Revenues in Measure decreased 4.3%, or
an increase of 1.7% on a constant currency basis, reflecting strong
performance in our retail measurement services and improved trends
in the U.S. Predict/Activate revenues decreased 11.2%, or
6.6% on a constant currency basis, compared to the first quarter of
2018, due to continued softness in areas such as innovation and
custom analytics.
Net income for the first quarter of 2019 decreased 40.3% to
$43 million, or 33.8% on a constant
currency basis, compared to $72
million in the first quarter of 2018, due to higher
restructuring charges, higher depreciation and amortization and the
phasing of strategic initiatives. Net income per share on a diluted
basis was $0.12 per share for the
first quarter of 2019, compared to $0.20 per share for the first quarter of 2018.
Adjusted earnings per share was $0.35
per share for the first quarter of 2019, compared to $0.40 per share for the first quarter of 2018,
driven by higher depreciation and amortization expense and higher
book taxes.
Adjusted EBITDA for the first quarter of 2019 decreased 1.9% to
$415 million, compared to the first
quarter of 2018. Adjusted EBITDA increased by 0.5% on a constant
currency basis. Adjusted EBITDA margins increased 28 basis points
to 26.6%, or 2 basis points on a constant currency basis, as
productivity initiatives were largely offset by product mix and
investments in growth initiatives.
Financial Position
As of March 31, 2019, Nielsen's
cash and cash equivalents were $402
million and gross debt was $8,627
million. Net debt (gross debt less cash and cash
equivalents) was $8,225 million and
Nielsen's net debt leverage ratio was 4.47x at the end of the
quarter. Net capital expenditures were $122
million for the first quarter of 2019, compared to
$128 million for the first quarter of
2018. Cash taxes were $42 million for
each of the first quarters ended 2019 and 2018.
Cash flow from operations improved to $(43) million for the first quarter of 2019, from
$(117) million in the first quarter
of 2018. Free cash flow for the first quarter of 2019 improved to
$(165) million, compared to
$(245) million in the first quarter
of 2018. Cash flow performance was primarily driven by lower
employee annual incentive payments and lower retailer investments,
partially offset by the Adjusted EBITDA performance discussed
above.
Capital Allocation
There were no share repurchases of common stock during the first
quarter of 2019. The company has a total of $228 million remaining for repurchase under the
existing share repurchase program.
On April 18, 2019, our board of
directors approved our quarterly cash dividend
of $0.35 per common share. The dividend is payable on
June 19, 2019 to shareholders of
record at the close of business on June 05, 2019.
2019 Full Year Guidance
The company is maintaining its full year guidance as highlighted
below:
- Total revenue growth on a constant currency basis: Flat to
+1.5%
- Adjusted EBITDA margin: 28 - 29%
- Adjusted EBITDA: $1,800 -
$1,900 million
- Adjusted earnings per share: $1.63 - $1.77
- Free cash flow: $525 -
$575 million
2019 Guidance Non-GAAP Reconciliations
The below table presents a reconciliation from forecasted
revenue to revenue on a constant currency basis for our 2019
guidance:
(IN
MILLIONS)
|
|
2019
Guidance
|
|
|
%
Variance
Constant
Currency
|
|
2018 Revenue
Constant
Currency
|
|
Total
Revenue
|
|
$
|
~6,485
|
|
|
Flat to
1.5%
|
|
$
|
6,435
|
|
|
|
|
|
|
|
|
|
|
|
|
The below table presents the reconciliation from Net Income to
Adjusted EBITDA for our 2019 guidance:
(IN
MILLIONS)
|
|
|
Net
income
|
|
$240 -
$300
|
Interest expense,
net
|
|
~410
|
Provision for income
taxes
|
|
~140
|
Depreciation and
amortization
|
|
~725
|
Restructuring
charges
|
|
~150
|
Share-based
compensation expense and Other
|
|
~150
|
Adjusted
EBITDA
|
|
$1,800 –
1,900
|
The below table presents reconciliation from Net Income
Attributable to Nielsen Shareholders to Adjusted Net Income to
calculate Adjusted Earnings per Share (diluted) for our 2019
guidance:
(IN MILLIONS
EXCEPT PER SHARE AMOUNTS)
|
|
|
Net income
attributable to Nielsen shareholders
|
|
$230 -
$285
|
Depreciation and
amortization associated with
acquisition-related tangible and intangible assets
|
|
~200
|
Restructuring
charges
|
|
~150
|
Share-based
compensation expense and Other
|
|
~150
|
Tax effect of above
items
|
|
~(160)
|
Adjusted
earnings
|
|
$580 -
$630
|
Adjusted earnings
per share
|
|
$1.63 –
$1.77
|
The below table presents reconciliation from net cash provided
by operating activities to free cash flow for our 2019
guidance:
(IN
MILLIONS)
|
|
|
Net cash provided by
operating activities
|
|
$1,055 -
$1,105
|
Less: Capital
expenditures, net
|
|
~(530)
|
Free cash
flow
|
|
$525 -
$575
|
Conference Call and Webcast
Nielsen will hold a conference call to discuss its first quarter
2019 results at 8:00 a.m. U.S.
Eastern Time (ET) on April 30, 2019.
The audio and slides for the call can be accessed live by webcast
at http://nielsen.com/investors or by dialing +1-833-236-2755.
Callers outside the U.S. can dial +1-647-689-4180. The passcode for
the call is "1175319." An audio replay and transcript will be
available on the investor relations website after the call.
Forward-looking Statements
This news release includes information that could constitute
forward-looking statements made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995.
These statements include those set forth under "2019 Full Year
Guidance" above as well as those that may be identified by words
such as "will," "intend," "expect," "anticipate," "should," "could"
and similar expressions. These statements are subject to risks and
uncertainties, and actual results and events could differ
materially from what presently is expected. Factors leading thereto
may include, without limitations, our ongoing review of strategic
alternatives, general economic conditions, conditions in the
markets Nielsen is engaged in, behavior of customers, suppliers and
competitors, technological developments, as well as legal and
regulatory rules affecting Nielsen's business and other specific
risk factors that are outlined in our disclosure filings and
materials, which you can find on http://ir.nielsen.com, such as our
most recent 10-K, 10-Q and 8-K reports that have been filed with
the Securities and Exchange Commission. Please consult these
documents for a more complete understanding of these risks and
uncertainties. This list of factors is not intended to be
exhaustive. Such forward-looking statements only speak as of the
date of this press release, and we assume no obligation to update
any written or oral forward-looking statement made by us or on our
behalf as a result of new information, future events, or other
factors, except as required by law.
About Nielsen
Nielsen Holdings plc (NYSE: NLSN) is a global measurement and
data analytics company that provides the most complete and trusted
view available of consumers and markets worldwide. Our approach
marries proprietary Nielsen data with other data sources to help
clients around the world understand what's happening now, what's
happening next, and how to best act on this knowledge. For more
than 90 years Nielsen has provided data and analytics based on
scientific rigor and innovation, continually developing new ways to
answer the most important questions facing the media, advertising,
retail and fast-moving consumer goods industries. An S&P 500
company, Nielsen has operations in over 100 countries, covering
more than 90% of the world's population. For more information,
visit www.nielsen.com.
From time to time, Nielsen may use its website and social media
outlets as channels of distribution of material company
information. Financial and other material information
regarding the company is routinely posted and accessible on our
website at http://www.nielsen.com/investors and our Twitter account
at http://twitter.com/Nielsen.
Results of Operations—(Three Months Ended March 31, 2019 and 2018)
The following table sets forth, for the periods indicated, the
amounts included in our condensed consolidated statements of
operations:
|
|
Three Months
Ended
March
31,
(Unaudited)
|
|
(IN MILLIONS,
EXCEPT SHARE AND PER SHARE DATA)
|
|
2019
|
|
|
2018
|
|
Revenues
|
|
$
|
1,563
|
|
|
$
|
1,610
|
|
Cost of
revenues
|
|
|
695
|
|
|
|
719
|
|
Selling, general and
administrative expenses
|
|
|
480
|
|
|
|
493
|
|
Depreciation and
amortization(1)
|
|
|
179
|
|
|
|
167
|
|
Restructuring
charges
|
|
|
35
|
|
|
|
24
|
|
Operating
income
|
|
|
174
|
|
|
|
207
|
|
Interest
income
|
|
|
2
|
|
|
|
2
|
|
Interest
expense
|
|
|
(99)
|
|
|
|
(96)
|
|
Foreign currency
exchange transaction losses, net
|
|
|
(3)
|
|
|
|
—
|
|
Other
income
|
|
|
5
|
|
|
|
1
|
|
Income from
continuing operations before income taxes
|
|
|
79
|
|
|
|
114
|
|
(Provision) for
income taxes
|
|
|
(32)
|
|
|
|
(39)
|
|
Net income
|
|
|
47
|
|
|
|
75
|
|
Net income
attributable to noncontrolling interests
|
|
|
4
|
|
|
|
3
|
|
Net income
attributable to Nielsen shareholders
|
|
$
|
43
|
|
|
$
|
72
|
|
Net income per share
of common stock, basic
|
|
|
|
|
|
|
|
|
Net income
attributable to Nielsen shareholders
|
|
$
|
0.12
|
|
|
$
|
0.20
|
|
Net income per share
of common stock, diluted
|
|
|
|
|
|
|
|
|
Net income
attributable to Nielsen shareholders
|
|
$
|
0.12
|
|
|
$
|
0.20
|
|
Weighted-average
shares of common stock outstanding, basic
|
|
|
355,444,756
|
|
|
|
356,460,561
|
|
Dilutive shares of
common stock
|
|
|
912,327
|
|
|
|
813,254
|
|
Weighted-average
shares of common stock outstanding, diluted
|
|
|
356,357,083
|
|
|
|
357,273,815
|
|
|
|
(1)
|
Depreciation and
amortization associated with tangible and intangible assets
acquired in business combinations were $54 million and $56 million
for the three months ended March 31, 2019 and 2018,
respectively.
|
Certain Non-GAAP Measures
We use the non-GAAP financial measures discussed below to
evaluate our results of operations, financial condition, liquidity
and indebtedness. We believe that the presentation of these
non-GAAP measures provides useful information to investors
regarding financial and business trends related to our results of
operations, cash flows and indebtedness and that when this non-GAAP
financial information is viewed with our GAAP financial
information, investors are provided with valuable supplemental
information regarding our results of operations, thereby
facilitating period-to-period comparisons of our business
performance and is consistent with how management evaluates the
company's operating performance and liquidity. In addition, these
non-GAAP measures address questions the Company routinely receives
from analysts and investors and, in order to assure that all
investors have access to similar data the Company has determined
that it is appropriate to make this data available to all
investors. None of the non-GAAP measures presented should be
considered as an alternative to net income or loss, operating
income or loss, cash flows from operating activities, total
indebtedness or any other measures of operating performance and
financial condition, liquidity or indebtedness derived in
accordance with GAAP. These non-GAAP measures have important
limitations as analytical tools and should not be considered in
isolation or as substitutes for an analysis of our results as
reported under GAAP. Our use of these terms may vary from the use
of similarly-titled measures by others in our industry due to the
potential inconsistencies in the method of calculation and
differences due to items subject to interpretation.
Constant Currency Presentation
We evaluate our results of operations on both an as reported and
a constant currency basis. The constant currency presentation,
which is a non-GAAP measure, excludes the impact of fluctuations in
foreign currency exchange rates. We believe providing constant
currency information provides valuable supplemental information
regarding our results of operations, thereby facilitating
period-to-period comparisons of our business performance and is
consistent with how management evaluates the Company's performance.
We calculate constant currency percentages by converting our
prior-period local currency financial results using the current
period exchange rates and comparing these adjusted amounts to our
current period reported results. No adjustment has been made to
foreign currency exchange transaction gains or losses in the
calculation of constant currency net income.
Organic Constant Currency Presentation
We define organic constant currency revenue as constant currency
revenue excluding the net effect of business acquisitions and
divestitures over the past twelve months. Refer to the Constant
Currency Presentation section above for the definition of constant
currency. We believe that this measure is useful to investors and
management in understanding our ongoing operations and in analysis
of ongoing operating trends.
The below table presents a reconciliation from revenue on a
reported basis to revenue on a constant currency basis and organic
constant currency basis for the three months ended March 31, 2019.
(IN MILLIONS)
(UNAUDITED)
|
|
Three
Months Ended
March 31,
2019
Reported
|
|
|
Three
Months Ended
March 31,
2018
Reported
|
|
|
% Variance
2019 vs. 2018
Reported
|
|
|
Three
Months Ended
March 31,
2018
Constant
Currency
|
|
|
% Variance
2019 vs. 2018
Constant
Currency
|
|
|
Three
Months Ended
March 31,
2019
Organic
|
|
|
Three
Months Ended
March 31,
2018
Organic
Constant
Currency
|
|
|
% Variance
2019 vs. 2018
Organic
Constant
Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measure
|
|
$
|
539
|
|
|
$
|
563
|
|
|
|
(4.3)
|
%
|
|
$
|
530
|
|
|
|
1.7
|
%
|
|
$
|
538
|
|
|
$
|
530
|
|
|
|
1.6
|
%
|
Predict/Activate
|
|
|
198
|
|
|
|
223
|
|
|
|
(11.2)
|
%
|
|
|
212
|
|
|
|
(6.6)
|
%
|
|
|
196
|
|
|
|
209
|
|
|
|
(6.4)
|
%
|
Connect
|
|
$
|
737
|
|
|
$
|
786
|
|
|
|
(6.2)
|
%
|
|
$
|
742
|
|
|
|
(0.7)
|
%
|
|
$
|
734
|
|
|
$
|
739
|
|
|
|
(0.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Audience
Measurement
|
|
$
|
605
|
|
|
$
|
596
|
|
|
|
1.5
|
%
|
|
$
|
592
|
|
|
|
2.2
|
%
|
|
$
|
604
|
|
|
$
|
592
|
|
|
|
2.0
|
%
|
Plan/Optimize
|
|
|
221
|
|
|
|
228
|
|
|
|
(3.1)
|
%
|
|
|
223
|
|
|
|
(0.9)
|
%
|
|
|
214
|
|
|
|
223
|
|
|
|
(4.2)
|
%
|
Media
|
|
$
|
826
|
|
|
$
|
824
|
|
|
|
0.2
|
%
|
|
$
|
815
|
|
|
|
1.3
|
%
|
|
$
|
817
|
|
|
$
|
815
|
|
|
|
0.3
|
%
|
Total
|
|
$
|
1,563
|
|
|
$
|
1,610
|
|
|
|
(2.9)
|
%
|
|
$
|
1,557
|
|
|
|
0.4
|
%
|
|
$
|
1,552
|
|
|
$
|
1,554
|
|
|
|
(0.2)
|
%
|
The below table presents a reconciliation of Net Income and
Adjusted EBITDA on a reported basis to a constant currency basis
for the three months ended March 31,
2019.
(IN MILLIONS)
(UNAUDITED)
|
|
Three
Months Ended
March 31,
2019
Reported
|
|
|
Three
Months Ended
March 31,
2018
Reported
|
|
|
% Variance
2019 vs. 2018
Reported
|
|
|
Three
Months Ended
March 31,
2018
Constant
Currency
|
|
|
% Variance
2019 vs. 2018
Constant
Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
attributable to Nielsen
Shareholders
|
|
$
|
43
|
|
|
$
|
72
|
|
|
|
(40.3)
|
%
|
|
$
|
65
|
|
|
|
(33.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
415
|
|
|
$
|
423
|
|
|
|
(1.9)
|
%
|
|
$
|
413
|
|
|
|
0.5
|
%
|
Adjusted EBITDA
We define Adjusted EBITDA as net income or loss from our
consolidated statements of operations before interest income and
expense, income taxes, depreciation and amortization, restructuring
charges, impairment of goodwill and other long-lived assets,
share-based compensation expense and other non-operating items from
our consolidated statements of operations as well as certain other
items that arise outside the ordinary course of our continuing
operations specifically described below.
Restructuring charges: We exclude
restructuring expenses, which primarily include employee severance,
office consolidation and contract termination charges, from our
Adjusted EBITDA to allow more accurate comparisons of the financial
results to historical operations and forward-looking guidance. By
excluding these expenses from our non-GAAP measures, management is
better able to evaluate our ability to utilize our existing assets
and estimate the long-term value these assets will generate for us.
Furthermore, we believe that the adjustments of these items more
closely correlate with the sustainability of our operating
performance.
Impairment of goodwill and other
long-lived assets: We exclude the impact of charges related to the
impairment of goodwill and other long-lived assets. We believe that
the exclusion of these impairments, which are non-cash, allows for
more meaningful comparisons of operating results to peer companies.
We believe that this increases period-to-period comparability and
is useful to evaluate the performance of the total company.
Share-based compensation expense:
We exclude the impact of costs relating to share-based
compensation. Due to the subjective assumptions and a variety of
award types, we believe that the exclusion of share-based
compensation expense, which is typically non-cash, allows for more
meaningful comparisons of operating results to peer companies.
Share-based compensation expense can vary significantly based on
the timing, size and nature of awards granted.
Other non-operating expenses, net:
We exclude foreign currency exchange transaction gains and losses
primarily related to intercompany financing arrangements as well as
other non-operating income and expense items, such as, gains and
losses recorded on business combinations or dispositions, sales of
investments, net income attributable to noncontrolling interests
and early redemption payments made in connection with debt
refinancing. We believe that the adjustments of these items more
closely correlate with the sustainability of our operating
performance.
Other items: To measure operating
performance, we exclude certain expenses and gains that arise
outside the ordinary course of our continuing operations. Such
costs primarily include legal settlements, acquisition related
expenses, business optimization costs and other transaction costs.
We believe the exclusion of such amounts allows management and the
users of the financial statements to better understand our
financial results.
Adjusted EBITDA is not a presentation made in accordance with
GAAP, and our use of the term Adjusted EBITDA may vary from the use
of similarly-titled measures by others in our industry due to the
potential inconsistencies in the method of calculation and
differences due to items subject to interpretation. Adjusted EBITDA
margin is Adjusted EBITDA for a particular period expressed as a
percentage of revenues for that period.
We use Adjusted EBITDA to measure our performance from period to
period both at the consolidated level as well as within our
operating segments, to evaluate and fund incentive compensation
programs and to compare our results to those of our competitors. In
addition to Adjusted EBITDA being a significant measure of
performance for management purposes, we also believe that this
presentation provides useful information to investors regarding
financial and business trends related to our results of operations
and that when non-GAAP financial information is viewed with GAAP
financial information, investors are provided with a more
meaningful understanding of our ongoing operating performance.
Adjusted EBITDA should not be considered as an alternative to
net income or loss, operating income, cash flows from operating
activities or any other performance measures derived in accordance
with GAAP as measures of operating performance or cash flows as
measures of liquidity. Adjusted EBITDA has important limitations as
an analytical tool and should not be considered in isolation or as
a substitute for analysis of our results as reported under
GAAP.
Adjusted Earnings per Share
We define Adjusted Earnings per Share as net income attributable
to Nielsen shareholders per share (diluted) from continuing
operations from our consolidated statements of operations,
excluding depreciation and amortization associated with acquired
tangible and intangible assets, restructuring charges, impairment
of goodwill and other long-lived assets, share-based compensation
expense, other non-operating items from our consolidated statements
of operations and certain other items considered unusual or
non-recurring in nature, adjusted for income taxes related to these
items. Management believes that this non-GAAP measure is useful in
providing period-to-period comparisons of the results of the
Company's ongoing operating performance.
The below table presents reconciliations from net income to
Adjusted EBITDA for the three months ended March 31, 2019 and 2018:
|
|
Three Months
Ended
March
31,
(Unaudited)
|
(IN
MILLIONS)
|
|
2019
|
|
|
2018
|
Net income
attributable to Nielsen Shareholders
|
|
$
|
43
|
|
|
$
|
72
|
Interest expense,
net
|
|
|
97
|
|
|
|
94
|
Provision for income
taxes
|
|
|
32
|
|
|
|
39
|
Depreciation and
amortization
|
|
|
179
|
|
|
|
167
|
EBITDA
|
|
|
351
|
|
|
|
372
|
Other non-operating
expense, net
|
|
|
2
|
|
|
|
2
|
Restructuring
charges
|
|
|
35
|
|
|
|
24
|
Share-based
compensation expense
|
|
|
15
|
|
|
|
13
|
Other
items(a)
|
|
|
12
|
|
|
|
12
|
Adjusted
EBITDA
|
|
$
|
415
|
|
|
$
|
423
|
|
|
(a)
|
Other items primarily
consist of business optimization costs, including strategic review
costs, and transaction related costs for the three months ended
March 31, 2019. Other items primarily consists of transaction
related costs and business optimization costs for the three months
ended March 31, 2018.
|
The below table presents reconciliations from diluted net income
per share to Adjusted earnings per share for the three months ended
March 31, 2019 and 2018:
|
|
Three Months
Ended
March
31,
(Unaudited)
|
|
(IN
MILLIONS)
|
|
2019
|
|
|
2018
|
|
Net income
attributable to Nielsen shareholders per
share of common stock, diluted
|
|
$
|
0.12
|
|
|
$
|
0.20
|
|
Depreciation and
amortization associated with
acquisition-related tangible and intangible
assets
|
|
|
0.15
|
|
|
|
0.16
|
|
Restructuring
|
|
|
0.10
|
|
|
|
0.07
|
|
Share-based
compensation
|
|
|
0.04
|
|
|
|
0.04
|
|
Other non-operating
(income)/expense, net
|
|
|
(0.01)
|
|
|
|
(0.00)
|
|
Other
items(a)
|
|
|
0.03
|
|
|
|
0.03
|
|
Tax effect of above
items
|
|
|
(0.09)
|
|
|
|
(0.09)
|
|
Adjusted earnings
per share
|
|
$
|
0.35
|
|
|
$
|
0.40
|
|
|
|
(a)
|
Other items primarily
consist of business optimization costs, including strategic review
costs, and transaction related costs for the three months ended
March 31, 2019. Other items primarily consists of transaction
related costs and business optimization costs for the three months
ended March 31, 2018.
|
Free Cash Flow
We define free cash flow as net cash provided by operating
activities, plus contributions to the Nielsen Foundation, less
capital expenditures, net. We believe providing free cash flow
information provides valuable supplemental liquidity information
regarding the cash flow that may be available for discretionary use
by us in areas such as the distributions of dividends, repurchase
of common stock, voluntary repayment of debt obligations or to fund
our strategic initiatives, including acquisitions, if any. However,
free cash flow does not represent residual cash flows entirely
available for discretionary purposes; for example, the repayment of
principal amounts borrowed is not deducted from free cash flow. Key
limitations of the free cash flow measure include the assumptions
that we will be able to refinance our existing debt when it matures
and meet other cash flow obligations from financing activities,
such as principal payments on debt. Free cash flow is not a
presentation made in accordance with GAAP. The following table
presents reconciliation from net cash provided by operating
activities to free cash flow:
|
|
Three Months Ended
March 31,
(Unaudited)
|
|
(IN
MILLIONS)
|
|
2019
|
|
|
2018
|
|
Net cash provided by
operating activities
|
|
$
|
(43)
|
|
|
$
|
(117)
|
|
Less: Capital
expenditures, net
|
|
|
(122)
|
|
|
|
(128)
|
|
Free cash
flow
|
|
$
|
(165)
|
|
|
$
|
(245)
|
|
Net Debt and Net Debt Leverage Ratio
The net debt leverage ratio is defined as net debt (gross debt
less cash and cash equivalents) as of the balance sheet date
divided by Adjusted EBITDA for the twelve months then ended. Net
debt and the net debt leverage ratio are commonly used metrics to
evaluate and compare leverage between companies and are not
presentations made in accordance with GAAP. The calculation of net
debt and the net debt leverage ratio as of March 31, 2019 is as follows:
(IN MILLIONS)
(Unaudited)
|
|
|
|
|
Gross debt as of
March 31, 2019
|
|
$
|
8,627
|
|
Less: cash and cash
equivalents as of March 31, 2019
|
|
|
(402)
|
|
Net debt as of
March 31, 2019
|
|
$
|
8,225
|
|
|
|
|
|
|
Adjusted EBITDA for
the year ended December 31, 2018
|
|
$
|
1,850
|
|
Less: Adjusted EBITDA
for the three months ended March 31, 2018
|
|
$
|
423
|
|
Add: Adjusted EBITDA
for the three months ended March 31, 2019
|
|
$
|
415
|
|
Adjusted EBITDA
for the twelve months ended March 31, 2019
|
|
$
|
1,842
|
|
|
|
|
|
|
Net debt leverage
ratio as of March 31, 2019
|
|
|
4.47x
|
|
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content:http://www.prnewswire.com/news-releases/nielsen-reports-1st-quarter-2019-results-300840094.html
SOURCE Nielsen Holdings plc