NEW YORK, NY -- (Marketwire) -- 11/02/12 -- Thomson Reuters (TSX: TRI) (NYSE: TRI)
•Revenues grew 1% before currency •Adjusted EBITDA of $864 million with a margin of 27.3% •Underlying operating profit of $585 million with a margin of 18.5% •Adjusted earnings per share were $0.54, unchanged from the third quarter of 2011 •2012 Outlook affirmed
Thomson Reuters (TSX: TRI) (NYSE: TRI), the world's leading source of intelligent information for businesses and professionals, today reported results for the third quarter ended September 30, 2012. The company reported revenues from ongoing businesses of $3.2 billion, a 1% increase before currency. Adjusted EBITDA decreased 5% from the prior-year period and the corresponding margin was 27.3% versus 28.5% in the third quarter of 2011. Underlying operating profit decreased 15% and the corresponding margin was 18.5% versus 21.6% in the prior-year period. The third quarter of 2011 was the high-water mark for adjusted EBITDA and underlying operating profit margins last year.
Adjusted earnings per share (EPS) were $0.54, unchanged from the prior-year period.
"Third-quarter results met our expectations even as the market environment remained challenging," said James C. Smith, chief executive officer of Thomson Reuters. "Our resilient subscription-based businesses performed well, while non-recurring revenues were weaker due to difficult prior-year comparables and lower transaction volumes. That said, we continue to make significant progress toward achieving our operational priorities and we remain on track to achieve our full-year outlook."
"Furthermore, despite what is anticipated to be a continued challenging environment on the top-line, we expect further operational improvements to drive continued efficiencies as we work to achieve sustainable, predictable free cash flow improvement and earnings growth," continued Mr. Smith.
Consolidated Financial Highlights Three Months Ended September 30, (Millions of U.S. dollars, except EPS and margins) -------------------------------------IFRS Financial Measures 2012 2011 Change -------- -------- -------Revenues $ 3,216 $ 3,453 -7%Operating profit $ 390 $ 659 -41%Diluted earnings per share (EPS) $ 0.56 $ 0.44 27%Cash flow from operations $ 607 $ 576 5%Non-IFRS Financial Measures(1) Change Before 2012 2011 Change Currency -------- -------- ------- --------Revenues from ongoing businesses $ 3,165 $ 3,197 -1% 1%Adjusted EBITDA $ 864 $ 911 -5% -4%Adjusted EBITDA margin 27.3% 28.5% -120bp -150bpUnderlying operating profit $ 585 $ 690 -15% -14%Underlying operating profit margin 18.5% 21.6% -310bp -320bpAdjusted earnings per share (EPS) $ 0.54 $ 0.54 0%Free cash flow $ 376 $ 360 4%Free cash flow from ongoing operations $ 369 $ 319 16%
