UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): September 20, 2011
FactSet Research Systems Inc.
(Exact name of Registrant as specified in its charter)
Delaware | 1-11869 | 13-3362547 | ||
(State or other jurisdiction of | (Commission | (I.R.S. Employer | ||
incorporation or organization) | File Number) | Identification Number) |
601 Merritt 7
Norwalk, Connecticut 06851
(Address of principal executive offices)
(203) 810-1000
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition
On September 20, 2011, FactSet Research Systems Inc. issued a press release announcing its results for the three and twelve months ended August 31, 2011. The press release is attached as Exhibit 99.1 to this report on Form 8-K. This information shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Exhibit 99.1 to this report contains certain financial measures that are considered non-GAAP financial measures as defined in the SEC rules. Exhibit 99.1 to this report also contains the reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles, as well as the reasons why Registrants management believes that presentation of the non-GAAP financial measures provides useful information to investors regarding the Registrants results of operations and, to the extent material, a statement disclosing any other additional purposes for which Registrants management uses the non-GAAP financial measures.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No. |
Description | |
99.1 | Press Release of FactSet Research Systems Inc., dated September 20, 2011 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
FACTSET RESEARCH SYSTEMS INC. (Registrant) | ||||||
Date: September 20, 2011 | By: | /s/ Maurizio Nicolelli | ||||
Maurizio Nicolelli | ||||||
Senior Vice President and Director of Finance | ||||||
(Principal Financial Officer) |
EXHIBIT INDEX
Exhibit No. |
Description of Document | |
99.1 | Press Release of Registrant, dated September 20, 2011 reporting the results of operations for the Registrants fourth fiscal quarter ended August 31, 2011. |
Exhibit 99.1
FactSet Research Systems Inc.
601 Merritt 7
Norwalk, Connecticut 06851
203.810.1000 / 203.810.1001 Fax
News Release
FOR IMMEDIATE RELEASE |
Contact: Rachel Stern FactSet Research Systems Inc. 203.810.1000 |
FactSet Research Systems Accelerates Revenue Growth to 14% during the Fourth Quarter of Fiscal 2011
| ASV generated in the fourth quarter was $37 million, a new quarterly record |
| Non-GAAP earnings per share grew 17% to $0.96 |
| An increase in the number of performance-based stock options that will vest resulted in an $0.08 charge to EPS |
NORWALK, Conn., September 20, 2011 FactSet Research Systems Inc. (NYSE:FDS) (Nasdaq: FDS), a leading provider of integrated global financial information and analytical applications for the investment community, today announced its results for the fourth quarter of fiscal 2011.
For the quarter ended August 31, 2011 revenues increased to $191.9 million, up 14% compared to the prior year. Operating income for the fourth quarter rose to $59.0 million from $57.4 million in the same period of fiscal 2010. Net income advanced to $40.9 million as compared to $39.3 million a year ago. Diluted earnings per share increased to $0.88, up from $0.83 in the same period of fiscal 2010. A pre-tax charge of $5.4 million or $0.08 per diluted share was recorded in the just completed fourth quarter related to an increase in the number of performance-based stock options that will vest.
GAAP financial measures including operating income, operating margin, net income and diluted earnings per share have been adjusted to report non-GAAP financial measures that exclude a pre-tax stock-based compensation charge of $5.4 million and prior year income tax benefits of $0.01 per diluted share. Non-GAAP operating income for the fourth quarter was up 12% to $64.4 million. Non-GAAP net income advanced 16% to $44.6 million and non-GAAP diluted earnings per share increased 17% to $0.96. A reconciliation between GAAP and non-GAAP financial measures is presented on page 8 of this press release.
Consolidated Statements of Income
(Condensed and Unaudited)
Three Months Ended August 31, |
Twelve Months Ended August 31, |
|||||||||||||||||||||||
(In thousands, except per share data) |
2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||||||||||
Revenues |
$ | 191,939 | $ | 168,234 | 14.1 | % | $ | 726,510 | $ | 641,059 | 13.3 | % | ||||||||||||
Operating income |
58,990 | 57,430 | 2.7 | % | 238,335 | 221,634 | 7.5 | % | ||||||||||||||||
Other income |
194 | 72 | 169.4 | % | 623 | 547 | 13.9 | % | ||||||||||||||||
Provision for income taxes |
18,304 | 18,211 | 0.5 | % | 67,912 | 71,970 | (5.6 | )% | ||||||||||||||||
Net income |
$ | 40,880 | $ | 39,291 | 4.0 | % | $ | 171,046 | $ | 150,211 | 13.9 | % | ||||||||||||
Diluted earnings per share |
$ | 0.88 | $ | 0.83 | 6.0 | % | $ | 3.61 | $ | 3.13 | 15.3 | % | ||||||||||||
Diluted weighted average shares |
46,595 | 47,280 | 47,355 | 48,004 |
Our positive fourth quarter results continue to demonstrate the success FactSet is having in the marketplace, said Philip A. Hadley, Chairman and Chief Executive Officer. In the fourth quarter, ASV grew $37 million, a quarterly record. In the past 12 months, our annual revenue growth rate improved 600 basis points to 14%, illustrative of our growing market share.
Annual Subscription Value (ASV)
ASV advanced $37 million during the quarter. ASV was $779 million at August 31, 2011, up 14% organically over the prior year. Of this total, 82% is derived from buy-side clients and the remainder is from the sell-side firms who perform M&A advisory work and equity research. ASV at any given point in time represents the forward-looking revenues for the next 12 months from all services currently being supplied to clients.
Page 1 of 8
Financial Highlights Fourth Quarter of Fiscal 2011
| ASV from U.S. operations was $533 million and $246 million was related to international operations. |
| U.S. revenues were $132 million, up 15% from the year ago quarter. |
| Non-U.S. revenues rose 12% to $60 million as compared to the same period in fiscal 2010. |
| Non-GAAP operating margin was 33.6%. |
| Non-GAAP operating income was up 12% compared to the prior year, while non-GAAP diluted EPS advanced 17%. |
| Quarterly free cash flow was $64 million, up from $63 million in the year ago quarter. |
| Cash and investments in marketable securities were $182 million at August 31, 2011. |
| The effective tax rate for the fourth quarter was 30.9% as compared to 31.7% a year ago. |
Operational Highlights Fourth Quarter of Fiscal 2011
| Professionals using FactSet increased 5% to 48,100, up 2,500 users over the past three months. |
| Client count was 2,237 at August 31, a net increase of 50 clients during the quarter. |
| Annual client retention was greater than 95% of ASV, consistent with last year. On a client basis, the annual retention rate improved to 92% of clients at August 31 as compared to 90% a year ago, reflecting a reduction in client turnover. |
| Employee count was 5,251 at August 31, an increase of 446 employees during the quarter. |
| Capital expenditures were $6.5 million with approximately $3.9 million for computer equipment and the remainder for office expansions. |
| A regular quarterly dividend of $12.2 million or $0.27 per share was paid on September 20, 2011, to common stockholders of record as of August 31, 2011. |
| The Company repurchased 890,000 shares for $84 million during the fourth quarter. At August 31, 2011, $142 million remains authorized for future repurchases. |
| Common shares outstanding were 45.1 million at August 31, 2011. |
Fiscal 2011 Highlights
| Revenues increased 13% to $727 million. |
| Diluted earnings per share rose 15% to $3.61. |
| Free cash flow generated over the last twelve months was $178 million. |
| Accounts receivable increased $15 million over the last 12 months while ASV is up $93 million over the same period. |
| Users of FactSet advanced 12% or 5,300 professionals since August 31, 2010. |
| Added a net increase of 127 clients over the last twelve months. |
| Employee count rose 28% to 5,251, up 1,135 employees from a year ago. |
| Capital expenditures were $28 million, net of landlord contributions for construction of $1.4 million. Approximately 68% of capital expenditures were for computer equipment and the remainder for office expansions. |
| FactSet increased its quarterly dividend 17% from $0.23 to $0.27 per share in May 2011. |
| FactSet was named one of Fortunes 100 Best Companies to Work For, marking the Companys third appearance on the list in the last four years. |
| FactSet Europe was named one of the UKs 50 Best Workplaces for the third year in a row. |
Business Outlook
The following forward-looking statements reflect FactSets expectations as of September 20, 2011. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially. The Company does not intend to update its forward-looking statements until its next quarterly results announcement, other than in publicly available statements.
First Quarter Fiscal 2012 Expectations
| Revenues are expected to range between $195 million and $198 million. |
| EPS should range between $0.98 and $1.00. |
Full Year Fiscal 2012
| The 2012 guidance for capital expenditures, net of landlord contributions, is $22 million to $30 million. |
| The projected annual effective tax rate is 31.0%. This rate assumes the U.S. Federal R&D tax credit is reenacted for calendar year 2012 as the tax credit is set to expire on January 1, 2012. If the R&D tax credit expires, the annual effective tax rate would rise to 31.5%. |
Conference Call
The Company will host a conference call today, September 20, 2011, at 11:00 a.m. (EDT) to review the fourth quarter fiscal 2011 earnings release. To listen, please visit the investor relations section of the Companys website at www.factset.com.
Page 2 of 8
Forward-looking statements
This news release contains forward-looking statements based on managements current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Companys strategy for growth, product development, market position, subscriptions, expected expenditures and financial results are forward-looking statements. Forward-looking statements may be identified by words like expected, anticipates, plans, intends, projects, should, indicates, continues, subscriptions and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in FactSets filings with the Securities and Exchange Commission, particularly its latest annual report on Form 10-K and quarterly reports on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, the current status of the global economy; the ability to integrate newly acquired companies and businesses; the stability of global securities markets; the ability to hire qualified personnel; the maintenance of the Companys leading technological position; the impact of global market trends on the Companys revenue growth rate and future results of operations; the negotiation of contract terms with corporate vendors, data suppliers and potential landlords; the retention of key clients; the successful resolution of ongoing audits by tax authorities; the continued employment of key personnel; the absence of U.S. or foreign governmental regulation restricting international business; and the sustainability of historical levels of profitability and growth rates in cash flow generation.
About Non-GAAP Financial Measures
Financial measures in accordance with generally accepted accounting principles (GAAP) including operating income, operating margin, net income and diluted earnings per share have been adjusted to report non-GAAP financial measures. These measures exclude a pre-tax charge of $5.4 million related to an increase in the number of performance-based stock options that will vest. The stock-based compensation charge reduced GAAP operating income by $5.4 million, GAAP diluted earnings per share by $0.08 and GAAP operating margin by 290 basis points. Non-GAAP operating income for the quarter was $64.4 million, up 12%. Non-GAAP net income advanced 16% to $44.6 million and non-GAAP diluted earnings per share increased 17% to $0.96.
FactSet uses these non-GAAP financial measures, both in presenting its results to stockholders and the investment community, and in its internal evaluation and management of the businesses. The Company believes that these financial measures and the information they provide are useful to investors because it permits investors to view the Companys performance using the same tools that management uses to gauge progress in achieving its goals. Investors may benefit from referring to these non-GAAP financial measures in assessing the Companys performance and when planning, forecasting and analyzing future periods and may also facilitate comparisons to its historical performance. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see page 8 of this release.
About Non-GAAP Free Cash Flow
The presentation of free cash flow is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. The GAAP financial measure, cash flows provided by operating activities, has been adjusted to report non-GAAP free cash flow that includes the cash cost for taxes and changes in working capital, less capital expenditures. Included in the just completed fourth quarter was $70.1 million of net cash provided by operations and $6.5 million of capital expenditures. Over the last twelve months, net cash provided by operations was $207 million and capital expenditures were $29 million. Non-GAAP free cash flow is not intended as an alternative measure of cash flows provided by operating activities, as determined in accordance with GAAP. FactSet uses this financial measure, both in presenting its results to stockholders and the investment community, and in the Companys internal evaluation and management of the businesses. Management believes that this financial measure is useful to investors because it permits investors to view the Companys performance using the same metric that management uses to gauge progress in achieving its goals and is an indication of cash flow that may be available to fund further investments in future growth initiatives.
Page 3 of 8
About FactSet
FactSet Research Systems Inc. combines integrated financial information, analytical applications, and client service to enhance the workflow and productivity of the global investment community. The Company, headquartered in Norwalk, Connecticut, was formed in 1978 and now conducts operations along with its affiliates from more than twenty-four locations worldwide, including Boston, New York, Chicago, San Mateo, London, Amsterdam, Frankfurt, Paris, Milan, Dubai, Tokyo, Hong Kong, Mumbai and Sydney.
Page 4 of 8
FactSet Research Systems Inc.
Consolidated Statements of Income - Unaudited
Three Months Ended August 31, |
Twelve Months Ended August 31, |
|||||||||||||||
(In thousands, except per share data) |
2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues |
$ | 191,939 | $ | 168,234 | $ | 726,510 | $ | 641,059 | ||||||||
Operating expenses |
||||||||||||||||
Cost of services |
65,477 | 53,918 | 244,623 | 206,550 | ||||||||||||
Selling, general and administrative |
67,472 | 56,886 | 243,552 | 212,875 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
132,949 | 110,804 | 488,175 | 419,425 | ||||||||||||
Operating income |
58,990 | 57,430 | 238,335 | 221,634 | ||||||||||||
Other income |
194 | 72 | 623 | 547 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
59,184 | 57,502 | 238,958 | 222,181 | ||||||||||||
Provision for income taxes |
18,304 | 18,211 | 67,912 | 71,970 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ | 40,880 | $ | 39,291 | $ | 171,046 | $ | 150,211 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted earnings per common share |
$ | 0.88 | $ | 0.83 | $ | 3.61 | $ | 3.13 | ||||||||
Weighted average common shares (Diluted) |
46,595 | 47,280 | 47,355 | 48,004 |
Page 5 of 8
FactSet Research Systems Inc.
Consolidated Statements of Financial Condition - Unaudited
(In thousands) | August 31, 2011 |
August 31, 2010 |
||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 181,685 | $ | 195,741 | ||||
Accounts receivable, net of reserves |
75,004 | 59,693 | ||||||
Deferred taxes |
4,008 | 2,812 | ||||||
Other current assets |
12,473 | 6,899 | ||||||
|
|
|
|
|||||
Total current assets |
273,170 | 265,145 | ||||||
Property, equipment, and leasehold improvements, net |
81,620 | 79,495 | ||||||
Goodwill |
228,265 | 221,991 | ||||||
Intangible assets, net |
46,310 | 52,179 | ||||||
Deferred taxes |
20,166 | 19,601 | ||||||
Other assets |
7,909 | 6,197 | ||||||
|
|
|
|
|||||
Total assets |
$ | 657,440 | $ | 644,608 | ||||
|
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|
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LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Accounts payable and accrued expenses |
$ | 24,603 | $ | 23,976 | ||||
Accrued compensation |
41,536 | 48,607 | ||||||
Deferred fees |
28,252 | 25,034 | ||||||
Taxes payable |
2,867 | 1,073 | ||||||
Dividends payable |
12,165 | 10,586 | ||||||
|
|
|
|
|||||
Total current liabilities |
109,423 | 109,276 | ||||||
Deferred taxes |
3,712 | 3,731 | ||||||
Taxes payable |
7,204 | 7,346 | ||||||
Deferred rent and other non-current liabilities |
21,913 | 21,849 | ||||||
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|
|||||
Total liabilities |
$ | 142,252 | $ | 142,202 | ||||
Stockholders Equity |
||||||||
Common stock |
$ | 614 | $ | 601 | ||||
Additional paid-in capital |
432,538 | 344,144 | ||||||
Treasury stock, at cost |
(824,382 | ) | (607,798 | ) | ||||
Retained earnings |
912,078 | 786,844 | ||||||
Accumulated other comprehensive loss |
(5,660 | ) | (21,385 | ) | ||||
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|
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Total stockholders equity |
515,188 | 502,406 | ||||||
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Total liabilities and stockholders equity |
$ | 657,440 | $ | 644,608 | ||||
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Page 6 of 8
FactSet Research Systems Inc.
Consolidated Statements of Cash Flows - Unaudited
Twelve Months Ended August 31, |
||||||||
(In thousands) | 2011 | 2010 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net income |
$ | 171,046 | $ | 150,211 | ||||
Adjustments to reconcile net income to net cash provided by operating activities |
||||||||
Depreciation and amortization |
36,847 | 37,343 | ||||||
Stock-based compensation expense |
25,773 | 14,065 | ||||||
Deferred income taxes |
(1,806 | ) | (5,827 | ) | ||||
Gain on sale of assets |
(22 | ) | (80 | ) | ||||
Tax benefits from share-based payment arrangements |
(18,331 | ) | (24,492 | ) | ||||
Changes in assets and liabilities, net of effects of acquisition |
||||||||
Accounts receivable, net of reserves |
(15,311 | ) | 3,883 | |||||
Accounts payable and accrued expenses |
188 | (1,308 | ) | |||||
Accrued compensation |
(7,882 | ) | 7,440 | |||||
Deferred fees |
3,219 | (7,759 | ) | |||||
Taxes payable, net of prepaid taxes |
20,387 | 35,781 | ||||||
Prepaid expenses and other assets |
(6,597 | ) | 281 | |||||
Landlord contributions |
1,354 | 483 | ||||||
Other working capital accounts, net |
(1,729 | ) | 1,059 | |||||
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|
|||||
Net cash provided by operating activities |
207,136 | 211,080 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Acquisition of business, net of cash acquired |
| (55,180 | ) | |||||
Purchases of property, equipment and leasehold improvements, net of proceeds from dispositions |
(29,343 | ) | (20,768 | ) | ||||
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|
|||||
Net cash used in investing activities |
(29,343 | ) | (75,948 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Dividend payments |
(43,949 | ) | (38,494 | ) | ||||
Repurchase of common stock |
(216,584 | ) | (192,816 | ) | ||||
Proceeds from employee stock plans |
43,079 | 55,250 | ||||||
Tax benefits from share-based payment arrangements |
18,331 | 24,492 | ||||||
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|
|
|||||
Net cash used in financing activities |
(199,123 | ) | (151,568 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents |
7,274 | (4,143 | ) | |||||
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|
|||||
Net decrease in cash and cash equivalents |
(14,056 | ) | (20,579 | ) | ||||
Cash and cash equivalents at beginning of period |
195,741 | 216,320 | ||||||
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|
|||||
Cash and cash equivalents at end of period |
$ | 181,685 | $ | 195,741 | ||||
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Page 7 of 8
Reconciliation of Non-GAAP Financial Measures
Financial measures in accordance with GAAP including operating income, operating margin, net income and diluted earnings per share have been adjusted in this earnings release to report non-GAAP financial measures. FactSet uses these non-GAAP financial measures, both in presenting its results to stockholders and the investment community, and in its internal evaluation and management of the businesses. The Company believes that these financial measures and the information they provide are useful to investors because it permits investors to view the Companys performance using the same tools that management uses to gauge progress in achieving its goals. Non-GAAP measures may also facilitate comparisons to FactSets historical performance.
(Unaudited) | Three Months Ended August 31, |
Twelve Months Ended August 31, |
||||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | |||||||||||||||||||
GAAP Diluted earnings per common share |
$ | 0.88 | $ | 0.83 | 6.0 | % | $ | 3.61 | $ | 3.13 | 15.3 | % | ||||||||||||
Incremental stock-based compensation, net of tax (a) |
0.08 | | 0.11 | |||||||||||||||||||||
Income tax benefits (b) |
| (0.01 | ) | (0.13 | ) | (0.04 | ) | |||||||||||||||||
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|
|
|
|
|
|||||||||||||||||
Non-GAAP diluted earnings per share |
$ | 0.96 | $ | 0.82 | 17.1 | % | $ | 3.59 | $ | 3.09 | 16.2 | % |
(In thousands, except per share data) |
Fiscal 2011 Results by Quarter |
|
||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD 11 | ||||||||||||||||
Revenues |
$ | 173,289 | $ | 177,635 | $ | 183,647 | $ | 191,939 | $ | 726,510 | ||||||||||
GAAP Operating income |
$ | 59,429 | $ | 58,093 | $ | 61,823 | $ | 58,990 | $ | 238,335 | ||||||||||
Incremental stock-based compensation (a) |
| 2,451 | | 5,414 | 7,865 | |||||||||||||||
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|
|||||||||||
Non-GAAP Operating income |
$ | 59,429 | $ | 60,544 | $ | 61,823 | $ | 64,404 | $ | 246,200 | ||||||||||
Non-GAAP Operating margin |
34.3 | % | 34.1 | % | 33.7 | % | 33.6 | % | 33.9 | % | ||||||||||
Net income |
$ | 41,601 | $ | 45,254 | $ | 43,311 | $ | 40,880 | $ | 171,046 | ||||||||||
Incremental stock-based compensation, net of tax (a) |
| 1,692 | | 3,736 | 5,428 | |||||||||||||||
Income tax benefits (b) |
(1,414 | ) | (4,912 | ) | | | (6,326 | ) | ||||||||||||
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|||||||||||
Non-GAAP Net income |
$ | 40,187 | $ | 42,034 | $ | 43,311 | $ | 44,616 | $ | 170,148 | ||||||||||
GAAP Diluted earnings per share |
$ | 0.88 | $ | 0.95 | $ | 0.92 | $ | 0.88 | $ | 3.61 | ||||||||||
Non-GAAP Diluted earnings per share |
$ | 0.85 | $ | 0.89 | $ | 0.92 | $ | 0.96 | $ | 3.59 | ||||||||||
Weighted average shares (Diluted) |
47,487 | 47,427 | 47,154 | 46,595 | 47,355 |
(a) | To add-back incremental stock-based compensation related to an increase in the estimated number of performance-based options that will vest. The revised estimate reflects a higher performance level than previously estimated and accordingly, increased the number of performance-based options that will vest and be expensed. Refer to the Companys previously filed quarterly reports on Form 10-Q filed with the Securities and Exchange Commission for further information regarding performance-based options. |
(b) | To exclude income tax benefits from finalizing prior years tax returns and the reenactment of the U.S. Federal R&D credit in December 2010. |
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