Thomson
Reuters Reports Fourth-Quarter and Full-Year 2015 Results
NEW YORK, Feb. 11, 2016 -- Thomson Reuters (TSX /
NYSE: TRI) today reported results for the fourth quarter and full
year ended December 31, 2015. The
company achieved its 2015 Outlook and provided guidance for
2016.
Logo -
http://photos.prnewswire.com/prnh/20130208/MM57185LOGO
Fourth Quarter - Improving Organic Revenue Growth, Margin and
Free Cash Flow
- Reported revenues declined 2%. Before currency, revenues grew
2% (all organic)
- Adjusted EBITDA grew 13% to $895
million with a margin of 28.4% vs. 24.7% in the prior-year
period
- Underlying operating profit grew 28% to $637 million with a margin of 20.2% vs. 15.5% in
Q4 2014
- Adjusted EPS was up 51% to $0.65
vs. $0.43 in the prior-year
period
- Financial & Risk:
- Organic revenues were unchanged from the prior-year period
- EBITDA margin was 30% (before currency)
- Net sales were positive for both the fourth quarter and the
full year
- Legal, Tax & Accounting and Intellectual Property &
Science's organic revenues collectively grew 4%
Full Year – Returned to Organic
Revenue Growth – Up 2% Before Currency
- Free cash flow grew 25% to $1.8
billion
- Adjusted EPS was up 15% to $2.13
vs. $1.85 in the prior year
- Returned $1.4 billion to
shareholders through the repurchase of 35.9 million shares in 2015
and today announced an additional buyback program for up to
$1.5 billion
- Board approved $0.02 annual
dividend increase to $1.36 per share,
the 23rd consecutive annual increase
- The company is preparing to launch a process to sell its
Intellectual Property & Science (IP&S) business and
currently expects to close the transaction in the second half of
the year. IP&S is included in the company's 2015 consolidated
results but will be a discontinued operation in 2016
"Today's results reflect the significant progress we have made
putting the company back on solid footing," said James C. Smith, president and chief executive
officer of Thomson Reuters. "With the ship now turned, we have
growing confidence in our strategy as we look to 2016 and
2017."
Consolidated Financial Highlights -
Fourth-Quarter 2015
|
Three
Months Ended December 31,
(Millions of U.S. dollars, except EPS and margins) |
|
|
IFRS Financial
Measures |
2015 |
2014 |
Change |
|
Revenues |
$3,148 |
$3,211 |
-2% |
|
Operating
profit |
$503 |
$1,339 |
-62% |
|
Diluted earnings
per share (EPS) |
$0.53 |
$1.43 |
-63% |
|
Cash flow from
operations |
$963 |
$806 |
19% |
|
|
Operating profit and diluted EPS decreased due to a $931 million
gain in the fourth quarter of 2014 realized in connection with
the
release of accumulated foreign currency translation adjustments
from shareholders' equity that were triggered by a reduction in
the
number of subsidiaries in the company's legal organizational
structure, which was part of the company's simplification
initiatives. |
|
Non-IFRS
Financial Measures (1) |
2015 |
2014 |
Change |
Change
Before
Currency |
Revenues from
ongoing businesses |
$3,148 |
$3,211 |
-2% |
2% |
Adjusted
EBITDA |
$895 |
$794 |
13% |
16% |
Adjusted EBITDA
margin |
28.4% |
24.7% |
370bp |
350bp |
Underlying
operating profit |
$637 |
$499 |
28% |
32% |
Underlying
operating profit margin |
20.2% |
15.5% |
470bp |
480bp |
Adjusted earnings
per share (adjusted EPS) |
$0.65 |
$0.43 |
51% |
63% |
Free cash
flow |
$708 |
$570 |
24% |
|
|
(1) These and other
non-IFRS financial measures are defined and reconciled to the most
directly comparable IFRS measures in the tables appended to this
news release. Additional information is provided in the explanatory
footnotes to the appended tables. |
- Revenues from ongoing businesses increased 2% (before currency)
from the prior-year period driven by the Legal, Tax &
Accounting and Intellectual Property & Science businesses,
which grew 4% in aggregate.
- Adjusted EBITDA increased 13% from the prior-year period and
the margin increased 370 basis points to 28.4%. The increase was
primarily due to stronger operating performance and lower charges
compared to the prior-year period.
- Excluding the impact of currency, adjusted EBITDA increased 16%
and the margin was 350 basis points higher than the prior-year
period. Excluding the impact of currency and $77 million of charges from the prior-year
period, the margin grew 110 basis points.
- Underlying operating profit increased 28% and the margin
increased 470 basis points to 20.2% due to stronger operating
performance and lower charges compared to the prior-year period.
- Excluding the impact of currency, underlying operating profit
increased 32% and the margin grew 480 basis points compared to the
prior-year period. Excluding the impact of currency and
$77 million of charges from the
prior-year period, the margin grew 240 basis points.
- Adjusted EPS was $0.65, up
$0.22 from the prior-year period.
- Excluding the impact of currency, adjusted EPS was up
$0.27 or 63% from the prior-year
period.
Consolidated Financial Highlights -
Full-Year 2015
|
Twelve
Months Ended December 31,
(Millions of U.S. dollars, except EPS and margins) |
|
|
IFRS Financial
Measures |
2015 |
2014 |
Change |
|
Revenues |
$12,209 |
$12,607 |
-3% |
|
Operating
profit |
$1,734 |
$2,545 |
-32% |
|
Diluted earnings
per share (EPS) |
$1.60 |
$2.35 |
-32% |
|
Cash flow from
operations |
$2,838 |
$2,414 |
18% |
|
|
Operating profit and diluted EPS decreased due to a $931 million
gain in the fourth quarter of 2014 realized in connection with
the
release of accumulated foreign currency translation adjustments
from shareholders' equity that were triggered by a reduction in
the
number of subsidiaries in the company's legal organizational
structure, which was part of the company's simplification
initiatives. |
|
Non-IFRS
Financial Measures (1) |
2015 |
2014 |
Change |
Change
Before
Currency |
Revenues from
ongoing businesses |
$12,209 |
$12,605 |
-3% |
2% |
Adjusted
EBITDA |
$3,392 |
$3,313 |
2% |
7% |
Adjusted EBITDA
margin |
27.8% |
26.3% |
150bp |
150bp |
Underlying
operating profit |
$2,293 |
$2,138 |
7% |
14% |
Underlying
operating profit margin |
18.8% |
17.0% |
180bp |
220bp |
Adjusted earnings
per share (adjusted EPS) |
$2.13 |
$1.85 |
15% |
26% |
Free cash
flow |
$1,801 |
$1,445 |
25% |
|
|
(1) These and other
non-IFRS financial measures are defined and reconciled to the most
directly comparable IFRS measures in the tables appended to this
news release. Additional information is provided in the explanatory
footnotes to the appended tables. |
- Revenues from ongoing businesses increased 2% (before currency)
from the prior year driven by the Legal, Tax & Accounting and
Intellectual Property & Science businesses, which grew 3% in
aggregate.
- Adjusted EBITDA increased 2% from the prior year and the margin
increased 150 basis points to 27.8%. The increase was due to
stronger operating performance and lower charges compared to the
prior year.
- Excluding the impact of currency, adjusted EBITDA increased 7%.
Excluding $135 million of charges
from the prior year, the margin grew 40 basis points. Currency had
no impact on the adjusted EBITDA margin.
- Underlying operating profit increased 7% from the prior year
and the margin increased 180 basis points to 18.8% due to stronger
operating performance and lower charges.
- Excluding the impact of currency, underlying operating profit
increased 14% and the margin was up 220 basis points. Excluding the
impact of currency and $135 million
of charges from the prior year, the margin grew 120 basis points.
Currency had a 40 basis point negative impact on the full-year
margin.
- Adjusted EPS was $2.13, up
$0.28 from the prior year.
- Excluding the impact of currency, adjusted EPS grew 26%,
$0.49 better than 2014.
- Free cash flow was $1.8 billion
compared to $1.4 billion in the prior
year, a 25% increase. The increase reflected improved operating
performance and lower severance and cash tax payments, as well as
timing benefits of approximately $50
million. Excluding severance payments from both periods,
free cash flow grew 7%.
2016 Business Outlook (Before
Currency)
Thomson Reuters today provided its Business Outlook for 2016.
The company's 2016 Outlook assumes constant currency rates compared
to 2015 and excludes the Intellectual Property & Science
business, which will be classified as a discontinued operation for
2016 reporting purposes. The 2016 Outlook is based on the
expected performance of the company's remaining businesses and does
not factor in the impact of any other acquisitions or divestitures
that may occur during the year.
The company expects:
- Low single digit revenue growth
- 2% to 3% revenue growth excluding Financial & Risk's
recoveries revenues, which are low margin revenues and are expected
to decline as partners move to direct billing with their
customers
- Adjusted EBITDA margin to range between 27.3% and 28.3%
- Comparable 2015 EBITDA margin (excluding IP & Science
business) was 27.3%
- Underlying operating profit margin to range between 18.4% and
19.4%
- Comparable 2015 underlying operating profit margin
(excluding IP & Science business) was 18.1%
- Free cash flow to range between $1.7 billion and $1.9
billion in 2016
To facilitate
comparison with our 2016 Outlook, Appendix A presents the company's
2015 actual results on a comparable basis excluding the
Intellectual Property & Science business.
The information in this section is
forward-looking and should be read in conjunction with the section
below entitled "Special Note Regarding Forward-Looking Statements,
Material Assumptions and Material Risks."
Dividend and Share Repurchases
The Thomson Reuters board of directors approved a $0.02 per share annualized increase in the
dividend to $1.36 per common share. A
quarterly dividend of $0.34 per share
is payable on March 15, 2016 to
common shareholders of record as of February
23, 2016. This dividend increase marks the 23rd
consecutive annual dividend increase by the company.
In 2015, the company repurchased approximately 35.9 million
shares at a cost of approximately $1.42
billion. Of this amount, 4.3 million shares were repurchased
in the fourth quarter at a cost of approximately $167 million.
Today, the company announced that it plans to repurchase up to
an additional $1.5 billion of its
shares as it has essentially completed its third $1 billion program announced in May 2015.
Highlights by Business Unit
Unless otherwise noted, all revenue
growth comparisons in this news release are before the impact of
foreign currency (constant currency) as Thomson Reuters believes
this provides the best basis to measure the performance of its
business.
Financial & Risk
Fourth Quarter
- Revenues were unchanged compared to the prior-year period.
Revenue growth exceeded 2% before the impact of expected lower
recoveries revenues and commercial pricing adjustments related to
the migration of remaining legacy foreign exchange and buy-side
customers onto the segment's unified platform.
- Recurring revenues (77% of the segment's revenues in the
quarter) increased 2% as an annual price increase and the impact of
positive net sales more than offset lower revenues resulting from
the price adjustments described above.
- Transactions revenues (14% of the segment's revenues in the
quarter) decreased 1% due to lower foreign exchange volumes.
- Recoveries revenues (9% of the segment's revenues in the
quarter) were down 14% (as expected) as some third-party partners
move to direct billing with their customers.
- Recoveries revenues are expected to decline approximately
$100 million in 2016. Recoveries
represent low-margin revenues in our Financial segment for content
or services provided by third parties and distributed through our
platform. This projected reduction in recoveries revenue has no
economic impact (i.e., no impact on EBITDA or Operating
profit).
- By geography, revenues in Asia
were up 3% and the Americas up 2%, while revenues in Europe, Middle
East and Africa (EMEA) were
down 3%.
- Net sales were positive overall and were positive in all
regions, except for EMEA. This marked the seventh consecutive
quarter of positive net sales.
- EBITDA increased 26% as savings related to efficiency
initiatives and the impact of $70
million of charges taken in the prior-year period were
partially offset by the impact of currency.
- The margin was 29.5%, up 710 basis points from the prior-year
period due to efficiency initiatives undertaken in 2014.
- Excluding the impact of currency, the margin was 30.0% and
excluding the impact of $70 million
of charges taken in the fourth quarter of 2014, the margin was up
320 basis points from the prior-year period. Currency had a 50
basis point negative impact on the margin.
- Operating profit increased 65% compared to the prior-year
period, primarily due to the same factors that impacted EBITDA.
- The margin was 20.8%, up 870 basis points from the prior-year
period.
- Excluding the impact of currency and one-time charges taken in
the fourth quarter of 2014, the margin was up 510 basis points from
the prior-year period. Currency had an 80 basis point negative
impact on the margin.
Full Year
- Revenues were unchanged compared to the prior year. Revenue
growth was greater than 2% before the impact of expected lower
recoveries revenues and the commercial pricing adjustments
described above.
- Recurring revenues (76% of the segment's revenues for the year)
increased 1% as an annual price increase and the impact of positive
net sales more than offset the lower pricing adjustments.
- Transactions revenues (14% of the segment's revenues for the
year) increased 1%.
- Low-margin recoveries revenues (10% of the segment's revenues
for the year) were down 5%.
- By geography, revenues in the Americas were up 2%, Asia up 1%, while revenues in EMEA were down
2%.
- Net sales were positive overall and were positive in all
regions except for EMEA, which was slightly negative. This marked
the first time in seven years that net sales were positive in all
four quarters in a calendar year.
- EBITDA increased 7% as savings related to efficiency
initiatives and the impact of $130
million of charges taken in the prior year were partially
offset by the impact of currency.
- The margin was 27.7%, up 340 basis points from the prior year
due to the efficiency initiatives mentioned above.
- Excluding the impact of currency and the impact of $130 million of charges taken in 2014, the margin
was up 220 basis points. Currency had an 80 basis point negative
impact on the margin.
- Operating profit increased 16% compared to the prior year,
primarily due to the same factors that impacted EBITDA.
- The margin was 18.0%, up 350 basis points from the prior
year.
- Before currency and charges from the prior year, the margin was
up 270 basis points. Currency had a 120 basis point negative impact
on the margin.
Legal
Fourth Quarter
- Revenues increased 2%. Excluding US print, revenues grew 3%
organically.
- Solutions businesses (46% of the segment's revenues in the
quarter) grew 5%. Revenue growth was driven by Legal Enterprise
Solutions and businesses in the United
Kingdom/Ireland (UKI) and
Latin America. Solutions
businesses represent all of Legal's revenues excluding US print and
US online legal information.
- US online legal information (38% of the segment's revenues in
the quarter) grew 2%, reflecting growth for the fourth consecutive
quarter.
- US print (16% of the segment's revenues in the quarter)
declined 6%.
- EBITDA increased 7% and the margin increased 260 basis points
to 36.9% compared to 34.3% in the prior-year period. Excluding the
impact of currency, the margin increased 200 basis points driven by
revenue growth, close management of discretionary costs, and the
timing of investment initiatives.
- Operating profit increased 12% and the margin increased 340
basis points to 29.5% compared to 26.1% in the prior-year period.
Excluding the impact of currency, the margin increased 300 basis
points for the same reasons that drove EBITDA margin growth.
Full Year
- Revenues increased 2%. Excluding US print, revenues grew 3%
organically.
- Solutions businesses (46% of the segment's revenues for the
year) grew 6%. Revenue growth was driven by Legal Managed Services,
Legal Enterprise Solutions and businesses in UKI and Latin America. Solutions businesses represent
all of Legal's revenues excluding US print and US online legal
information.
- US online legal information (39% of the segment's revenues for
the year) grew 1%, reflecting growth in all quarters of the year
and the first full year of growth since 2009.
- US print (15% of the segment's revenues for the year) declined
6%.
- EBITDA remained unchanged and the margin increased 30 basis
points to 36.9% compared to 36.6% in the prior year. Excluding the
impact of currency, the margin decreased 30 basis points.
- Operating profit increased 3% and the margin increased 100
basis points to 29.4% compared to 28.4% in the prior year.
Excluding the impact of currency, the margin increased 50 basis
points.
Tax & Accounting
Fourth Quarter
- Revenues increased 7% driven by the Corporate, Professional and
Government businesses, partially offset by a decline in the
Knowledge Solutions business which was driven by the timing of
revenues. Recurring revenues (86% of the segment's revenues in the
quarter) were up 8%.
- EBITDA increased 22% and the margin increased 610 basis points
to 39.3% compared to 33.2% in the prior-year period. Excluding the
impact of currency, the margin was up 440 basis points primarily
due to revenue growth.
- Operating profit increased 28% and the margin increased 630
basis points to 32.2% compared to 25.9% in the prior-year period.
Excluding the impact of currency, the margin was up 490 basis
points for similar reasons that drove EBITDA margin growth.
- Small movements in the timing of revenues and expenses can
impact margins in any given quarter for the Tax & Accounting
business. Full-year margins are more reflective of the segment's
underlying performance.
Full Year
- Revenues increased 8% driven by the Corporate and Professional
businesses. Recurring revenues (83% of the segment's revenue for
the year) were up 8% organically.
- EBITDA increased 9% and the margin increased 180 basis points
to 32.2% compared to 30.4% in the prior year. Excluding the impact
of currency, the margin was up 80 basis points.
- Operating profit increased 16% and the margin increased 270
basis points to 24.2% compared to 21.5% in the prior year.
Excluding the impact of currency, the margin was up 170 basis
points.
Intellectual Property & Science
Fourth Quarter
- Revenues were up 3%, subscription revenue (74% of the segment's
revenue in the quarter) grew 1% and transactions revenues grew 8%
driven by Web of Science.
- EBITDA increased 1% and the margin declined 30 basis points to
35.0% compared to 35.3% in the prior-year period. Excluding the
impact of currency, the margin declined 130 basis points compared
to the prior-year period.
- Operating profit was unchanged, and the margin declined 50
basis points to 26.3% compared to 26.8% in the prior-year period.
Excluding the impact of currency, the margin declined 110 basis
points from the prior-year period.
- Small movements in the timing of revenues and expenses can
impact margins in any given quarter for the Intellectual Property
& Science business. Full-year margins are more reflective of
the segment's underlying performance.
Full Year
- Revenues were up 1% as subscription revenue (78% of the
segment's revenue for the year) growth of 3% was partially offset
by a 4% decline in transactions revenues.
- Both EBITDA and operating profit margins were affected by the
4% decline in transactions revenues, which are highly profitable.
- EBITDA decreased 5% and the margin declined 130 basis points to
31.1% compared to 32.4% in the prior year. Excluding the impact of
currency, the margin declined 220 basis points compared to the
prior year.
- Operating profit decreased 8% and the margin declined 160 basis
points to 22.0% compared to 23.6% in the prior year. Excluding the
impact of currency, the margin declined 240 basis points as
compared to the prior year.
Corporate & Other (Including
Reuters News)
Fourth Quarter
- Reuters News revenues were $74
million, unchanged from the prior-year period.
- Corporate & Other costs were $141
million compared to $97
million in the prior-year period. The increase was largely
comprised of costs incurred by the consolidation of technology
operations (severance related), higher healthcare costs and higher
media-related expenses.
Full Year
- Reuters News revenues were $296
million, up 1% from the prior year.
- Corporate & Other costs were $360
million compared to $305
million in the prior year. The increase was largely
comprised of costs incurred by the consolidation of technology
operations (severance related), higher healthcare costs and higher
media-related expenses.
Thomson Reuters
Thomson Reuters is the world's leading source of news and
information for professional markets. Our customers rely on us to
deliver the intelligence, technology and expertise they need to
find trusted answers. The business has operated in more than 100
countries for more than 100 years. Thomson Reuters shares are
listed on the Toronto and New York
Stock Exchanges (symbol: TRI). For more information, visit
http://www.thomsonreuters.com/.
NON-IFRS FINANCIAL MEASURES
Thomson Reuters prepares its
financial statements in accordance with International Financial
Reporting Standards (IFRS), as issued by the International
Accounting Standards Board (IASB).
This news release includes certain
non-IFRS financial measures, such as revenues from ongoing
businesses, adjusted EBITDA and the related margin, underlying
operating profit and the related margin, free cash flow, adjusted
EPS, and selected measures before the impact of foreign currency.
Thomson Reuters uses these non-IFRS financial measures as
supplemental indicators of its operating performance and financial
position. These measures do not have any standardized meanings
prescribed by IFRS and therefore are unlikely to be comparable to
the calculation of similar measures used by other companies, and
should not be viewed as alternatives to measures of financial
performance calculated in accordance with IFRS. Non-IFRS financial
measures are defined and reconciled to the most directly comparable
IFRS measures in the appended tables.
SPECIAL NOTE REGARDING FORWARD-LOOKING
STATEMENTS, MATERIAL ASSUMPTIONS AND MATERIAL RISKS
Certain statements in this news release, including, but not
limited to, statements in the "2016 Business Outlook (Before
Currency)" section, Mr. Smith's comments, the company's plans to
sell its Intellectual Property & Science business and its plans
to repurchase up to an additional $1.5
billion of its shares, are forward-looking. As a result,
forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results or events to differ
materially from current expectations. There is no assurance
that the events described in any forward-looking statement will
materialize. A business outlook is provided for the purpose of
presenting information about current expectations for 2016. This
information may not be appropriate for other purposes. You are
cautioned not to place undue reliance on forward-looking statements
which reflect expectations only as of the date of this news
release. Except as may be required by applicable law, Thomson
Reuters disclaims any obligation to update or revise any
forward-looking statements.
The company's 2016 Business Outlook
is based on various external and internal assumptions. Economic and
market assumptions include, but are not limited to, GDP growth in
most of the countries where Thomson Reuters operates and a
continued increase in the number of professionals around the world
and their demand for high quality information and workflow
solutions. Internal financial and operational assumptions include,
but are not limited to, the successful execution of sales
initiatives, ongoing product release programs, our globalization
strategy and other growth and efficiency initiatives. The 2016
Business Outlook also assumes that the company's Intellectual
Property & Science business will be sold during the year.
The timing for repurchases under the
company's new $1.5 billion buyback
program will depend on the timing for the sale of its Intellectual
Property & Science business in addition to other factors, such
as market conditions, share price and opportunities to invest
capital for growth. There is no assurance that a transaction
involving all or part of the company's Intellectual Property &
Science business will be completed.
Some of the material risk factors that could cause
actual results or events to differ materially from those expressed
in or implied by forward-looking statements in this news
release include, but are not limited to, changes in the
general economy; actions of competitors; failure to develop new
products, services, applications and functionalities to meet
customers' needs, attract new customers or expand into new
geographic markets and identify areas of higher growth; failures or
disruptions of telecommunications, network systems or the Internet;
fraudulent or unpermitted data access or other cyber-security or
privacy breaches; increased accessibility to free or relatively
inexpensive information sources; failure to maintain a high renewal
rate for subscription-based services; dependency on third parties
for data, information and other services; changes to law and
regulations, including the impact of the Dodd-Frank legislation and
similar financial services laws around the world; tax matters,
including changes to tax laws, regulations and treaties;
fluctuations in foreign currency exchange and interest rates;
failure to adapt to recent organizational changes and effectively
implement strategic initiatives; failure to recruit, motivate and
retain high quality management and key employees; failure to meet
the challenges involved in operating globally; failure to derive
fully the anticipated benefits from existing or future
acquisitions, joint ventures, investments or dispositions; failure
to protect the brands and reputation of Thomson Reuters; impairment
of goodwill and identifiable intangible assets; inadequate
protection of intellectual property rights; threat of legal actions
and claims; risk of antitrust/competition-related claims or
investigations; downgrading of credit ratings and adverse
conditions in the credit markets; the effect of factors outside of
the control of Thomson Reuters on funding obligations in respect of
pension and post-retirement benefit arrangements; and actions or
potential actions that could be taken by the company's principal
shareholder, The Woodbridge Company Limited. These and other
factors are discussed in materials that Thomson Reuters from time
to time files with, or furnishes to, the Canadian securities
regulatory authorities and the U.S. Securities and Exchange
Commission. Thomson Reuters annual and quarterly reports are also
available in the "Investor Relations" section of
http://www.thomsonreuters.com/.
CONTACTS |
|
|
|
MEDIA |
INVESTORS |
David Crundwell |
Frank J. Golden |
Senior Vice President, Corporate
Affairs |
Senior Vice President, Investor
Relations |
+1 646 223 5285 |
+1 646 223 5288 |
david.crundwell@tr.com |
frank.golden@tr.com |
Thomson Reuters will webcast a discussion of its
fourth-quarter and full-year 2015 results today beginning at
8:30 a.m. Eastern Time (ET).
You can access the webcast by visiting the "Investor Relations"
section of www.thomsonreuters.com. An archive of the
webcast will be available following the presentation.
Thomson Reuters
Corporation |
Business Segment
Information |
(millions of U.S.
dollars, except for margins) |
(unaudited) |
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
December 31, |
|
Change |
|
|
|
2015 |
2014 |
|
Total |
Before
Currency (5) |
Organic |
|
Revenues |
|
|
|
|
|
|
|
|
Financial & Risk |
|
$1,527 |
$1,597 |
|
-4% |
0% |
0% |
|
Legal |
|
867 |
872 |
|
-1% |
2% |
2% |
|
Tax & Accounting |
|
410 |
397 |
|
3% |
7% |
7% |
|
Intellectual Property &
Science |
|
274 |
269 |
|
2% |
3% |
3% |
|
Corporate &
Other (includes Reuters News) |
|
74 |
79 |
|
-6% |
0% |
0% |
|
Eliminations |
|
(4) |
(3) |
|
|
|
|
|
Revenues from
ongoing businesses (1) |
|
3,148 |
3,211 |
|
-2% |
2% |
2% |
|
Other Businesses
(2) |
|
- |
- |
|
|
|
|
|
Revenues |
|
$3,148 |
$3,211 |
|
-2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin |
Adjusted EBITDA
(3) |
|
|
|
|
Change |
2015 |
2014 |
Change |
Financial & Risk |
|
$450 |
$358 |
|
26% |
29.5% |
22.4% |
710bp |
Legal |
|
320 |
299 |
|
7% |
36.9% |
34.3% |
260bp |
Tax & Accounting |
|
161 |
132 |
|
22% |
39.3% |
33.2% |
610bp |
Intellectual Property &
Science |
|
96 |
95 |
|
1% |
35.0% |
35.3% |
-30bp |
Corporate & Other (includes
Reuters News) |
|
(132) |
(90) |
|
|
|
|
|
Adjusted EBITDA |
|
$895 |
$794 |
|
13% |
28.4% |
24.7% |
370bp |
|
|
|
|
|
|
|
|
|
Underlying Operating Profit
(4) |
|
|
|
|
|
|
|
|
Financial & Risk |
|
$318 |
$193 |
|
65% |
20.8% |
12.1% |
870bp |
Legal |
|
256 |
228 |
|
12% |
29.5% |
26.1% |
340bp |
Tax & Accounting |
|
132 |
103 |
|
28% |
32.2% |
25.9% |
630bp |
Intellectual Property &
Science |
|
72 |
72 |
|
0% |
26.3% |
26.8% |
-50bp |
Corporate &
Other (includes Reuters News) |
|
(141) |
(97) |
|
|
|
|
|
Underlying operating
profit |
|
$637 |
$499 |
|
28% |
20.2% |
15.5% |
470bp |
|
Refer to page 14 for
explanation of footnotes. |
Thomson Reuters
Corporation |
Business Segment
Information |
(millions of U.S.
dollars, except for margins) |
(unaudited) |
|
|
|
Twelve Months Ended |
|
|
|
|
|
|
|
December 31, |
|
Change |
|
|
|
2015 |
2014 |
|
Total |
Before
Currency (5) |
Organic |
|
Revenues |
|
|
|
|
|
|
|
|
Financial & Risk |
|
$6,148 |
$6,538 |
|
-6% |
0% |
0% |
|
Legal |
|
3,354 |
3,379 |
|
-1% |
2% |
2% |
|
Tax & Accounting |
|
1,417 |
1,370 |
|
3% |
8% |
7% |
|
Intellectual Property &
Science |
|
1,005 |
1,011 |
|
-1% |
1% |
1% |
|
Corporate &
Other (includes Reuters News) |
|
296 |
319 |
|
-7% |
1% |
1% |
|
Eliminations |
|
(11) |
(12) |
|
|
|
|
|
Revenues from
ongoing businesses (1) |
|
12,209 |
12,605 |
|
-3% |
2% |
2% |
|
Other Businesses
(2) |
|
- |
2 |
|
|
|
|
|
Revenues |
|
$12,209 |
$12,607 |
|
-3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin |
Adjusted EBITDA
(3) |
|
|
|
|
Change |
2015 |
2014 |
Change |
Financial & Risk |
|
$1,701 |
$1,591 |
|
7% |
27.7% |
24.3% |
340bp |
Legal |
|
1,238 |
1,238 |
|
0% |
36.9% |
36.6% |
30bp |
Tax & Accounting |
|
456 |
417 |
|
9% |
32.2% |
30.4% |
180bp |
Intellectual Property &
Science |
|
313 |
328 |
|
-5% |
31.1% |
32.4% |
-130bp |
Corporate & Other (includes
Reuters News) |
|
(316) |
(261) |
|
|
|
|
|
Adjusted EBITDA |
|
$3,392 |
$3,313 |
|
2% |
27.8% |
26.3% |
150bp |
|
|
|
|
|
|
|
|
|
Underlying Operating Profit
(4) |
|
|
|
|
|
|
|
|
Financial & Risk |
|
$1,104 |
$951 |
|
16% |
18.0% |
14.5% |
350bp |
Legal |
|
985 |
958 |
|
3% |
29.4% |
28.4% |
100bp |
Tax & Accounting |
|
343 |
295 |
|
16% |
24.2% |
21.5% |
270bp |
Intellectual Property &
Science |
|
221 |
239 |
|
-8% |
22.0% |
23.6% |
-160bp |
Corporate &
Other (includes Reuters News) |
|
(360) |
(305) |
|
|
|
|
|
Underlying operating
profit |
|
$2,293 |
$2,138 |
|
7% |
18.8% |
17.0% |
180bp |
|
Refer to page 14 for
explanation of footnotes. |
Thomson Reuters
Corporation |
Reconciliation of
Operating Profit to Adjusted EBITDA (3) |
(millions of U.S.
dollars) |
(unaudited) |
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
December 31, |
|
|
December 31, |
|
|
2015 |
2014 |
Change |
|
2015 |
2014 |
Change |
|
|
|
|
|
|
|
|
Operating profit |
$503 |
$1,339 |
-62% |
|
$1,734 |
$2,545 |
-32% |
Adjustments to remove: |
|
|
|
|
|
|
|
Amortization of
other identifiable intangible assets |
141 |
159 |
|
|
581 |
647 |
|
Fair value adjustments |
(5) |
(38) |
|
|
(7) |
(91) |
|
Other operating gains, net |
(2) |
(965) |
|
|
(15) |
(969) |
|
Operating loss from Other
Businesses (2) |
- |
4 |
|
|
- |
6 |
|
Underlying operating
profit |
$637 |
$499 |
28% |
|
$2,293 |
$2,138 |
7% |
Remove: depreciation
and amortization of computer
software (excluding Other Businesses (2)) |
258 |
295 |
|
|
1,099 |
1,175 |
|
Adjusted EBITDA |
$895 |
$794 |
13% |
|
$3,392 |
$3,313 |
2% |
|
|
|
|
|
|
|
|
Underlying operating profit
margin (4) |
20.2% |
15.5% |
470bp |
|
18.8% |
17.0% |
180bp |
Adjusted EBITDA margin
(3) |
28.4% |
24.7% |
370bp |
|
27.8% |
26.3% |
150bp |
|
|
|
|
|
|
|
|
Thomson Reuters
Corporation |
Reconciliation of
Net Earnings to Adjusted EBITDA (3) |
(millions of U.S.
dollars) |
(unaudited) |
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
December 31, |
|
|
December 31, |
|
|
2015 |
2014 |
Change |
|
2015 |
2014 |
Change |
|
|
|
|
|
|
|
|
Net earnings |
$417 |
$1,157 |
-64% |
|
$1,311 |
$1,959 |
-33% |
Adjustments to remove: |
|
|
|
|
|
|
|
Tax expense |
3 |
9 |
|
|
56 |
62 |
|
Other finance (income) costs |
(16) |
60 |
|
|
(39) |
85 |
|
Net interest expense |
102 |
113 |
|
|
416 |
442 |
|
Amortization of
other identifiable intangible assets |
141 |
159 |
|
|
581 |
647 |
|
Amortization of computer
software |
180 |
192 |
|
|
752 |
778 |
|
Depreciation |
78 |
103 |
|
|
347 |
397 |
|
EBITDA |
$905 |
$1,793 |
|
|
$3,424 |
$4,370 |
|
Adjustments to remove: |
|
|
|
|
|
|
|
Share of post-tax
earnings in equity method
investments |
(3) |
- |
|
|
(10) |
(3) |
|
Other operating gains, net |
(2) |
(965) |
|
|
(15) |
(969) |
|
Fair value adjustments |
(5) |
(38) |
|
|
(7) |
(91) |
|
EBITDA from Other Businesses
(2) |
- |
4 |
|
|
- |
6 |
|
Adjusted EBITDA |
$895 |
$794 |
13% |
|
$3,392 |
$3,313 |
2% |
|
Refer to page 14 for
explanation of footnotes. |
Thomson Reuters
Corporation |
Reconciliation of
Underlying Operating Profit (4) to Adjusted EBITDA
(3) by Business Segment |
(millions of U.S.
dollars) |
(unaudited) |
|
|
Three Months Ended
December 31, 2015 |
|
Three
Months Ended
December 31, 2014 |
|
Underlying
Operating
Profit |
Add:
Depreciation
and
Amortization
of Computer
Software |
Adjusted
EBITDA |
|
Underlying
Operating
Profit |
Add:
Depreciation
and
Amortization
of Computer
Software ** |
Adjusted
EBITDA |
|
|
|
|
|
|
|
|
Financial & Risk |
$318 |
$132 |
$450 |
|
$193 |
$165 |
$358 |
Legal |
256 |
64 |
320 |
|
228 |
71 |
299 |
Tax &
Accounting |
132 |
29 |
161 |
|
103 |
29 |
132 |
Intellectual
Property & Science |
72 |
24 |
96 |
|
72 |
23 |
95 |
Corporate &
Other (includes Reuters News) |
(141) |
9 |
(132) |
|
(97) |
7 |
(90) |
|
$637 |
$258 |
$895 |
|
$499 |
$295 |
$794 |
|
|
|
|
Twelve
Months Ended
December 31, 2015 |
|
Twelve
Months Ended
December 31, 2014 |
|
Underlying
Operating
Profit |
Add:
Depreciation
and
Amortization
of Computer
Software |
Adjusted
EBITDA |
|
Underlying
Operating
Profit |
Add:
Depreciation
and
Amortization
of Computer
Software ** |
Adjusted
EBITDA |
|
|
|
|
|
|
|
|
Financial & Risk |
$1,104 |
$597 |
$1,701 |
|
$951 |
$640 |
$1,591 |
Legal |
985 |
253 |
1,238 |
|
958 |
280 |
1,238 |
Tax & Accounting |
343 |
113 |
456 |
|
295 |
122 |
417 |
Intellectual Property &
Science |
221 |
92 |
313 |
|
239 |
89 |
328 |
Corporate & Other (includes
Reuters News) |
(360) |
44 |
(316) |
|
(305) |
44 |
(261) |
|
$2,293 |
$1,099 |
$3,392 |
|
$2,138 |
$1,175 |
$3,313 |
|
_________________________ |
** Excludes Other
Businesses (2) |
|
Refer to page 14 for
explanation of footnotes. |
Thomson Reuters
Corporation |
Reconciliation of
Changes in Adjusted EBITDA (5), Underlying Operating
Profit (5) and the Related Margins, and |
Adjusted Earnings
Per Share (EPS) (5) Excluding the Effects of Foreign
Currency |
(millions of U.S.
dollars, except for per share amounts, and margins) |
(unaudited) |
|
|
Three Months Ended December 31, |
|
|
|
% Change |
|
|
|
BP Change |
|
2015 |
2014 |
|
Total |
Foreign
Currency |
Before
Currency |
|
2015
Margin |
2014
Margin |
Total |
Foreign
Currency |
Before
Currency |
Adjusted EBITDA |
$895 |
$794 |
|
13% |
(3%) |
16% |
|
28.4% |
24.7% |
370bp |
20bp |
350bp |
Underlying operating profit |
$637 |
$499 |
|
28% |
(4%) |
32% |
|
20.2% |
15.5% |
470bp |
(10)bp |
480bp |
Adjusted EPS |
$0.65 |
$0.43 |
|
51% |
(12%) |
63% |
|
n/a |
n/a |
n/a |
n/a |
n/a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
% Change |
|
|
|
BP Change |
|
2015 |
2014 |
|
Total |
Foreign
Currency |
Before
Currency |
|
2015
Margin |
2014
Margin |
Total |
Foreign
Currency |
Before
Currency |
Adjusted EBITDA |
$3,392 |
$3,313 |
|
2% |
(5%) |
7% |
|
27.8% |
26.3% |
150bp |
0bp |
150bp |
Underlying
operating profit |
$2,293 |
$2,138 |
|
7% |
(7%) |
14% |
|
18.8% |
17.0% |
180bp |
(40)bp |
220bp |
Adjusted EPS |
$2.13 |
$1.85 |
|
15% |
(11%) |
26% |
|
n/a |
n/a |
n/a |
n/a |
n/a |
|
|
|
|
|
|
|
|
|
|
|
|
|
n/a – not
applicable |
Thomson Reuters
Corporation |
Reconciliation of
Earnings Attributable to Common Shareholders to Adjusted Earnings
(6) |
(millions of U.S.
dollars, except for share and per share data) |
(unaudited) |
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December
31, |
|
December
31, |
|
2015 |
2014 |
|
2015 |
2014 |
Earnings attributable to common
shareholders |
$408 |
$1,147 |
|
$1,255 |
$1,909 |
Adjustments to
remove: |
|
|
|
|
|
Operating loss
from Other Businesses (2) |
- |
4 |
|
- |
6 |
Fair value
adjustments |
(5) |
(38) |
|
(7) |
(91) |
Other operating
gains, net |
(2) |
(965) |
|
(15) |
(969) |
Other finance
(income) costs |
(16) |
60 |
|
(39) |
85 |
Share of post-tax
earnings in equity method investments |
(3) |
- |
|
(10) |
(3) |
Tax on above
items |
(4) |
2 |
|
(6) |
12 |
Tax items
impacting comparability |
- |
- |
|
1 |
(10) |
Amortization of
other identifiable intangible assets |
141 |
159 |
|
581 |
647 |
Interim period
effective tax rate normalization (7) |
6 |
- |
|
- |
- |
Tax charge
amortization (8) |
(21) |
(21) |
|
(86) |
(86) |
Dividends declared
on preference shares |
- |
(1) |
|
(2) |
(3) |
Adjusted
earnings |
$504 |
$347 |
|
$1,672 |
$1,497 |
Adjusted earnings per
share |
$0.65 |
$0.43 |
|
$2.13 |
$1.85 |
|
|
|
|
|
|
Diluted
weighted-average common shares (millions) |
770.3 |
803.2 |
|
784.1 |
810.9 |
|
Refer to page 14 for
explanation of footnotes. |
Thomson Reuters
Corporation |
Reconciliation of
Net Cash Provided by Operating Activities |
to Free Cash Flow
from Ongoing Businesses (9) |
(millions of U.S.
dollars) |
(unaudited) |
|
|
Three Months Ended |
Twelve Months Ended |
December
31, |
December
31, |
|
2015 |
2014 |
2015 |
2014 |
Net cash provided by operating
activities |
$963 |
$806 |
$2,838 |
$2,414 |
Capital
expenditures, less proceeds from disposals |
(260) |
(264) |
(1,003) |
(968) |
Other investing activities |
16 |
43 |
21 |
50 |
Dividends paid on preference
shares |
- |
(1) |
(2) |
(3) |
Dividends paid to non-controlling
interests |
(11) |
(14) |
(53) |
(48) |
Free cash flow |
708 |
570 |
1,801 |
1,445 |
Remove: Other Businesses
(2) |
- |
3 |
- |
2 |
Free cash flow from ongoing
businesses |
$708 |
$573 |
$1,801 |
$1,447 |
Footnotes |
|
(1) |
Revenues from
ongoing businesses are revenues from reportable segments and
Corporate & Other (which includes Reuters News) less
eliminations. Other
Businesses (see note (2) below) are excluded. |
(2) |
Other Businesses are businesses
that have been or are expected to be exited through sale or closure
that did not qualify for discontinued operations
classification. |
(3) |
Thomson Reuters defines adjusted
EBITDA as underlying operating profit excluding the related
depreciation and amortization of computer software. Adjusted EBITDA
margin is adjusted EBITDA expressed as a percentage of revenues
from ongoing businesses. |
(4) |
Underlying operating profit is
operating profit from reportable segments and Corporate & Other
(includes Reuters News). Underlying operating profit margin is the
underlying operating profit expressed as a percentage of revenues
from ongoing businesses. |
(5) |
The changes in revenues from
ongoing businesses, adjusted EBITDA and underlying operating profit
and the related margins, and adjusted earnings per share before
currency (at constant currency or excluding the effects of
currency) are determined by converting the current and prior
period's local currency equivalent using the same exchange
rates. |
(6) |
Adjusted earnings and adjusted
earnings per share include dividends declared on preference shares
and amortization of the 2013 tax charges associated with the
consolidation of technology and content assets but exclude the
pre-tax impacts of amortization of other identifiable intangible
assets as well as the post-tax impacts of fair value adjustments,
other operating (gains) and losses, certain impairment charges, the
results of Other Businesses (see note (2) above), other finance
(income) costs, Thomson Reuters share of post-tax (earnings) losses
in equity method investments, discontinued operations and other
items affecting comparability. Adjusted earnings per share is
calculated using diluted weighted-average shares and does not
represent actual earnings or loss per share attributable to
shareholders. |
(7) |
Adjustment to reflect income
taxes based on estimated full-year effective tax rate. Reported
earnings or loss for interim periods reflect income taxes based on
the estimated effective tax rates of each of the jurisdictions in
which Thomson Reuters operates. The adjustment reallocates
estimated full-year income taxes between interim periods, but has
no effect on full-year income taxes. |
(8) |
Reflects amortization of the 2013
tax charges associated with the consolidation of the ownership and
management of technology and content assets. For the non-IFRS
measure, the majority of the charges are amortized over seven
years, the period over which the tax is expected to be paid. |
(9) |
Free cash flow is net cash
provided by operating activities and other investing activities
less capital expenditures, dividends paid on the company's
preference shares, and dividends paid to non-controlling interests.
Other Businesses (see note (2) above) are also removed to arrive at
free cash flow from ongoing businesses. |
Thomson Reuters
Corporation |
Consolidated Income
Statement |
(millions of U.S.
dollars, except per share data) |
(unaudited) |
|
|
Three Months
Ended |
|
Twelve Months
Ended |
|
December
31, |
|
December
31, |
|
2015 |
2014 |
|
2015 |
2014 |
Revenues |
$3,148 |
$3,211 |
|
$12,209 |
$12,607 |
Operating expenses |
(2,248) |
(2,383) |
|
(8,810) |
(9,209) |
Depreciation |
(78) |
(103) |
|
(347) |
(397) |
Amortization of computer
software |
(180) |
(192) |
|
(752) |
(778) |
Amortization of
other identifiable intangible assets |
(141) |
(159) |
|
(581) |
(647) |
Other operating gains, net |
2 |
965 |
|
15 |
969 |
Operating profit |
503 |
1,339 |
|
1,734 |
2,545 |
Finance costs, net: |
|
|
|
|
|
Net interest expense |
(102) |
(113) |
|
(416) |
(442) |
Other finance income (costs) |
16 |
(60) |
|
39 |
(85) |
Income before tax
and equity method investments |
417 |
1,166 |
|
1,357 |
2,018 |
Share of post-tax
earnings in equity method investments |
3 |
- |
|
10 |
3 |
Tax expense |
(3) |
(9) |
|
(56) |
(62) |
Net earnings |
$417 |
$1,157 |
|
$1,311 |
$1,959 |
|
|
|
|
|
|
Earnings attributable to: |
|
|
|
|
|
Common shareholders |
408 |
1,147 |
|
1,255 |
1,909 |
Non-controlling interests |
9 |
10 |
|
56 |
50 |
|
|
|
|
|
|
Basic earnings per share |
$0.53 |
$1.43 |
|
$1.60 |
$2.36 |
Diluted earnings per share |
$0.53 |
$1.43 |
|
$1.60 |
$2.35 |
|
|
|
|
|
|
Basic weighted-average common
shares |
767,449,251 |
799,929,289 |
|
781,273,338 |
807,897,067 |
Diluted
weighted-average common shares |
770,285,540 |
803,207,856 |
|
784,138,389 |
810,930,098 |
|
|
|
|
|
|
Thomson Reuters
Corporation |
Consolidated
Statement of Financial Position |
(millions of U.S.
dollars) |
(unaudited) |
|
|
December
31, |
|
December
31, |
2015 |
|
2014 |
Assets |
|
|
|
Cash and cash equivalents |
$926 |
|
$1,018 |
Trade and other receivables |
1,755 |
|
1,810 |
Other financial assets |
176 |
|
161 |
Prepaid expenses
and other current assets |
683 |
|
657 |
Current assets |
3,540 |
|
3,646 |
|
|
|
|
Computer hardware
and other property, net |
1,067 |
|
1,182 |
Computer software, net |
1,486 |
|
1,529 |
Other identifiable intangible
assets, net |
6,417 |
|
7,124 |
Goodwill |
15,878 |
|
16,403 |
Other financial assets |
116 |
|
127 |
Other non-current assets |
552 |
|
536 |
Deferred tax |
47 |
|
50 |
Total assets |
$29,103 |
|
$30,597 |
|
|
|
|
Liabilities and equity |
|
|
|
Liabilities |
|
|
|
Current indebtedness |
$1,555 |
|
$534 |
Payables, accruals and
provisions |
2,288 |
|
2,443 |
Deferred revenue |
1,319 |
|
1,355 |
Other financial liabilities |
238 |
|
265 |
Current liabilities |
5,400 |
|
4,597 |
|
|
|
|
Long-term indebtedness |
6,829 |
|
7,576 |
Provisions and
other non-current liabilities |
2,122 |
|
2,171 |
Other financial liabilities |
387 |
|
161 |
Deferred tax |
1,265 |
|
1,433 |
Total liabilities |
16,003 |
|
15,938 |
|
|
|
|
Equity |
|
|
|
Capital |
9,852 |
|
10,157 |
Retained earnings |
6,458 |
|
7,168 |
Accumulated other comprehensive
loss |
(3,697) |
|
(3,147) |
Total shareholders' equity |
12,613 |
|
14,178 |
Non-controlling interests |
487 |
|
481 |
Total equity |
13,100 |
|
14,659 |
Total liabilities and
equity |
$29,103 |
|
$30,597 |
Thomson Reuters
Corporation |
Consolidated
Statement of Cash Flow |
(millions of U.S.
dollars) |
(unaudited) |
|
|
Three Months Ended
December 31, |
|
Twelve Months Ended
December 31, |
|
|
|
|
|
|
|
2015 |
2014 |
|
2015 |
2014 |
Cash provided by (used
in): |
|
|
|
|
|
Operating activities |
|
|
|
|
|
Net earnings |
$417 |
$1,157 |
|
$1,311 |
$1,959 |
Adjustments for: |
|
|
|
|
|
Depreciation |
78 |
103 |
|
347 |
397 |
Amortization of computer
software |
180 |
192 |
|
752 |
778 |
Amortization of other identifiable
intangible assets |
141 |
159 |
|
581 |
647 |
Net gains on
disposals of businesses and investments |
- |
(8) |
|
(24) |
(9) |
Release of
accumulated foreign currency translation adjustments |
- |
(931) |
|
- |
(931) |
Deferred tax |
(84) |
(86) |
|
(193) |
(273) |
Other |
56 |
82 |
|
247 |
230 |
Changes in working capital and
other items |
175 |
138 |
|
(183) |
(384) |
Net cash provided by operating
activities |
963 |
806 |
|
2,838 |
2,414 |
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
Acquisitions, net of cash
acquired |
(20) |
(2) |
|
(37) |
(167) |
Proceeds from
disposals of businesses and investments,
net of taxes paid |
8 |
- |
|
83 |
14 |
Capital expenditures, less
proceeds from disposals |
(260) |
(264) |
|
(1,003) |
(968) |
Other investing activities |
16 |
43 |
|
21 |
50 |
Net cash used in investing
activities |
(256) |
(223) |
|
(936) |
(1,071) |
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
Proceeds from debt |
- |
483 |
|
4 |
1,480 |
Repayments of debt |
(1) |
(1,120) |
|
(594) |
(1,120) |
Net (repayments)
borrowings under short-term loan facilities |
(62) |
- |
|
1,037 |
- |
Repurchases of common shares |
(167) |
(297) |
|
(1,417) |
(1,023) |
Dividends paid on preference
shares |
- |
(1) |
|
(2) |
(3) |
Dividends paid on common
shares |
(248) |
(255) |
|
(1,013) |
(1,033) |
Dividends paid to non-controlling
interests |
(11) |
(14) |
|
(53) |
(48) |
Other financing activities |
4 |
(19) |
|
67 |
129 |
Net cash used in financing
activities |
(485) |
(1,223) |
|
(1,971) |
(1,618) |
Increase (decrease) in cash and
bank overdrafts |
222 |
(640) |
|
(69) |
(275) |
Translation adjustments |
(5) |
(8) |
|
(24) |
(22) |
Cash and bank overdrafts at
beginning of period |
705 |
1,663 |
|
1,015 |
1,312 |
Cash and bank overdrafts at end of
period |
$922 |
$1,015 |
|
$922 |
$1,015 |
|
|
|
|
|
|
Cash and bank
overdrafts at end of period comprised of: |
|
|
|
|
|
Cash and cash equivalents |
$926 |
$1,018 |
|
$926 |
$1,018 |
Bank overdrafts |
(4) |
(3) |
|
(4) |
(3) |
|
$922 |
$1,015 |
|
$922 |
$1,015 |
|
Prior-period amounts have been
reclassified to reflect the current presentation. |
Appendix A |
|
The following
supplemental information is provided to facilitate comparison to
our 2016 business outlook, which is based on expectations excluding
the Intellectual Property & Science (IP&S)
segment. |
|
Thomson Reuters
Corporation |
Supplemental
Financial Information |
(millions of U.S.
dollars, except for per share amounts and margins) |
(unaudited) |
|
|
Twelve Months
Ended
December 31, |
|
|
|
Twelve Months
Ended
December 31, |
|
2015 |
Adjustments |
2015 |
Non-IFRS Financial Measures (1) |
Actual |
Remove
IP&S
Segment Results |
Add Back
Retained
Business (2) |
Retained
Shared Costs (3) |
Revised
Excluding IP&S |
Revenues from
ongoing businesses |
$12,209 |
(1,005) |
54 |
- |
$11,258 |
|
|
|
|
|
|
Adjusted EBITDA |
$3,392 |
(313) |
30 |
(38) |
$3,071 |
Adjusted EBITDA margin |
27.8% |
|
|
|
27.3% |
|
|
|
|
|
|
Underlying operating profit |
$2,293 |
(221) |
27 |
(61) |
$2,038 |
Underlying
operating profit margin |
18.8% |
|
|
|
18.1% |
|
|
|
|
|
|
Adjusted earnings |
$1,672 |
(185) |
23 |
(51) |
$1,459 |
|
|
|
|
|
|
Adjusted earnings per share |
$2.13 |
(0.24) |
0.03 |
(0.06) |
$1.86 |
|
|
|
|
|
|
Free cash flow
(4) |
$1,801 |
- |
- |
- |
$1,801 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
These non-IFRS financial measures
are defined and reconciled to the most directly comparable IFRS
measures in the tables appended to this news release. Additional
information is provided in the explanatory footnotes on page
14. |
|
|
(2) |
Represents an IP&S business
to be retained by our Legal segment. |
|
|
(3) |
Represents estimates of certain
shared costs that will not be eliminated with the sale. |
|
|
(4) |
Free cash flow includes
discontinued operations; therefore, no adjustments are
necessary. |
Appendix A
(continued) |
|
Thomson Reuters
Corporation |
Supplemental
Information |
Revised Business
Segment Information |
(Excluding the
Intellectual Property & Science (IP&S) segment) |
(millions of U.S.
dollars, except for margins) |
(unaudited) |
|
|
Twelve Months
Ended |
|
|
|
Twelve Months
Ended |
|
December 31,
2015 |
Adjustments |
December 31,
2015 |
|
Actual |
Remove
IP&S
Segment Results |
Add Back
Retained
Business (2) |
Retained
Shared Costs(3) |
Revised
Excluding IP&S |
Revenues |
|
|
|
|
|
Financial & Risk |
$6,148 |
- |
- |
- |
$6,148 |
Legal |
3,354 |
- |
54 |
- |
3,408 |
Tax & Accounting |
1,417 |
- |
- |
- |
1,417 |
Intellectual Property &
Science (IP&S) |
1,005 |
(1,005) |
- |
- |
- |
Corporate &
Other (includes Reuters News) |
296 |
- |
- |
- |
296 |
Eliminations |
(11) |
- |
- |
- |
(11) |
Revenues from
ongoing businesses (1) |
$12,209 |
(1,005) |
54 |
- |
$11,258 |
|
|
|
|
|
|
Adjusted EBITDA
(1) |
|
|
|
|
|
Financial & Risk |
$1,701 |
- |
- |
- |
$1,701 |
Legal |
1,238 |
- |
30 |
- |
1,268 |
Tax & Accounting |
456 |
- |
- |
- |
456 |
Intellectual Property &
Science (IP&S) |
313 |
(313) |
- |
- |
- |
Corporate &
Other (includes Reuters News) |
(316) |
- |
- |
(38) |
(354) |
Adjusted EBITDA |
$3,392 |
(313) |
30 |
(38) |
$3,071 |
|
|
|
|
|
|
Underlying
Operating Profit(1) |
|
|
|
|
|
Financial & Risk |
$1,104 |
- |
- |
- |
$1,104 |
Legal |
985 |
- |
27 |
- |
1,012 |
Tax & Accounting |
343 |
- |
- |
- |
343 |
Intellectual Property &
Science (IP&S) |
221 |
(221) |
- |
- |
- |
Corporate &
Other (includes Reuters News) |
(360) |
- |
- |
(61) |
(421) |
Underlying operating
profit |
$2,293 |
(221) |
27 |
(61) |
$2,038 |
|
|
|
|
|
|
(1) |
These non-IFRS financial measures
are defined and reconciled to the most directly comparable IFRS
measures in the tables appended to this news release. Additional
information is provided in the explanatory footnotes on page
14. |
|
|
(2) |
Represents an IP&S business
to be retained by our Legal segment. |
|
|
(3) |
Represents estimates of certain
shared costs that will not be eliminated with the sale. |
SOURCE Thomson Reuters