Delaware
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1-11869
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13-3362547
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(State or other jurisdiction of
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(Commission
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(I.R.S. Employer
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incorporation or organization)
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File Number)
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Identification Number)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit No.
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Description
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99.1
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Press Release of FactSet Research Systems Inc., dated September 25, 2012
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FACTSET RESEARCH SYSTEMS INC.
(Registrant)
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Date: September 25, 2012
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By:
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/s/ Maurizio Nicolelli
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Maurizio Nicolelli
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Senior Vice President and Director of Finance
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(Principal Financial Officer)
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Exhibit No.
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Description of Document
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99.1
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Press Release of Registrant, dated September 25, 2012 reporting the results of operations for the Registrant’s fourth fiscal quarter ended August 31, 2012.
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ASV advanced $31.9 million. Excluding the StreetAccount acquisition, ASV increased $20.4 million.
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Diluted EPS was $1.08, up 13% when excluding a stock-based compensation charge recorded in the year ago quarter
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Excluding StreetAccount, client count rose by 57, the largest quarterly growth since 2006
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Free cash flow was $51 million during the fourth quarter and $209 million for the full fiscal 2012 year, up 18% over last year
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(Condensed and Unaudited)
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Three Months Ended
August 31,
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Twelve Months Ended
August 31,
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(In thousands, except per share data)
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2012
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2011
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Change
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2012
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2011
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Change
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Revenues
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$ | 207,663 | $ | 191,939 | 8.2 | % | $ | 805,793 | $ | 726,510 | 10.9 | % | ||||||||||||
Operating income
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70,627 | 58,990 | 19.7 | % | 272,990 | 238,335 | 14.5 | % | ||||||||||||||||
Provision for income taxes
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22,547 | 18,304 | 23.2 | % | 85,896 | 67,912 | 26.5 | % | ||||||||||||||||
Net income
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$ | 48,539 | $ | 40,880 | 18.7 | % | $ | 188,809 | $ | 171,046 | 10.4 | % | ||||||||||||
Diluted earnings per share
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$ | 1.08 | $ | 0.88 | 22.7 | % | $ | 4.12 | $ | 3.61 | 14.1 | % | ||||||||||||
Diluted weighted average shares
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45,152 | 46,595 | 45,810 | 47,355 |
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·
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ASV from U.S. operations was $572 million and $271 million was related to international operations.
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U.S. revenues were $141.4 million, up 7% from the year ago quarter.
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Non-U.S. revenues rose 10% to $66.3 million as compared to the same period in fiscal 2011.
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Operating margin was 34.0% for the quarter.
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Quarterly free cash flow was $51 million.
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Cash and investments were $203 million at August 31, 2012.
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The effective tax rate was 31.7% as compared to 30.9% a year ago.
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Client count was 2,392 at August 31, a net increase of 57 clients during the quarter, excluding StreetAccount. This net client increase represents the largest quarterly organic growth since the fourth quarter of fiscal 2006.
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Annual client retention was greater than 95% of ASV and 92% when expressed as a percentage of clients.
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Over the past three months, users increased by 1,100 to 49,500, excluding StreetAccount.
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Employee count was 5,735 at August 31, an increase of 280 employees during the quarter.
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Capital expenditures were $5.7 million.
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A regular quarterly dividend of $13.7 million or $0.31 per share was paid on September 18, 2012 to common stockholders of recorded as of August 31, 2012.
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The Company repurchased 710,000 shares for $65.8 million during the fourth quarter. At August 31, 2012, $190 million remains authorized for future repurchases.
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Common shares outstanding were 44.3 million at August 31, 2012.
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Revenues increased 11% to $806 million.
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Diluted earnings per share rose 14% to $4.12.
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Free cash flow generated over the last twelve months was $209 million, up 18%.
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Accounts receivable decreased $1 million over the last twelve months while organic ASV is up $53 million over the same period, reflecting an improvement in DSO from 35 to 32 days.
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Users of FactSet advanced by 1,400 professionals since August 31, 2011.
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A net increase of 155 clients over the last twelve months compared to 127 last year.
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Employee count rose 9% to 5,735, up 484 employees from a year ago.
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FactSet increased its quarterly dividend 15% from $0.27 to $0.31 per share in May 2012. This is the 7th consecutive year that FactSet’s annual dividend has been increased by more than 10%, resulting in a five year dividend growth rate of 21%.
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Revenues are expected to range between $210 million and $213 million.
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Operating margin is expected to range between 33.5% and 34.0%.
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The effective tax rate is expected to range between 31.5% and 32.5%.
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GAAP diluted EPS should range between $1.10 and $1.12, which represents year over year growth of 11% and 13% at each end of the range.
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The full year fiscal 2013 guidance for capital expenditures, net of landlord contributions, is $20 million to $28 million.
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The annual effective tax rate is expected to range between 31.5% and 32.5%.
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Three Months Ended
August 31,
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Twelve Months Ended
August 31,
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(In thousands, except per share data)
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2012
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2011
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2012
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2011
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Revenues
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$ | 207,663 | $ | 191,939 | $ | 805,793 | $ | 726,510 | ||||||||
Operating expenses
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Cost of services
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72,295 | 65,477 | 275,537 | 244,623 | ||||||||||||
Selling, general and administrative
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64,741 | 67,472 | 257,266 | 243,552 | ||||||||||||
Total operating expenses
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137,036 | 132,949 | 532,803 | 488,175 | ||||||||||||
Operating income
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70,627 | 58,990 | 272,990 | 238,335 | ||||||||||||
Other income
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459 | 194 | 1,715 | 623 | ||||||||||||
Income before income taxes
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71,086 | 59,184 | 274,705 | 238,958 | ||||||||||||
Provision for income taxes
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22,547 | 18,304 | 85,896 | 67,912 | ||||||||||||
Net income
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$ | 48,539 | $ | 40,880 | $ | 188,809 | $ | 171,046 | ||||||||
Diluted earnings per common share
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$ | 1.08 | $ | 0.88 | $ | 4.12 | $ | 3.61 | ||||||||
Diluted weighted average common shares
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45,152 | 46,595 | 45,810 | 47,355 |
(In thousands)
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August 31,
2012
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August 31,
2011
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ASSETS
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Cash and cash equivalents
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$ | 189,044 | $ | 181,685 | ||||
Investments
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13,919 | - | ||||||
Accounts receivable, net of reserves
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74,251 | 75,004 | ||||||
Prepaid taxes
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2,485 | - | ||||||
Deferred taxes
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5,085 | 4,008 | ||||||
Prepaid expenses and other current assets
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14,341 | 12,473 | ||||||
Total current assets | 299,125 | 273,170 | ||||||
Property, equipment, and leasehold improvements, net
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76,530 | 81,620 | ||||||
Goodwill
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245,791 | 228,265 | ||||||
Intangible assets, net
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43,371 | 46,310 | ||||||
Deferred taxes
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23,113 | 20,166 | ||||||
Other assets
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6,213 | 7,909 | ||||||
TOTAL ASSETS | $ | 694,143 | $ | 657,440 | ||||
LIABILITIES
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Accounts payable and accrued expenses
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$ | 27,680 | $ | 24,603 | ||||
Accrued compensation
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41,274 | 41,536 | ||||||
Deferred fees
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30,495 | 28,252 | ||||||
Taxes payable
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- | 2,867 | ||||||
Dividends payable
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13,727 | 12,165 | ||||||
Total current liabilities | 113,176 | 109,423 | ||||||
Deferred taxes
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2,593 | 3,712 | ||||||
Taxes payable
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5,464 | 7,204 | ||||||
Deferred rent and other non-current liabilities
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20,646 | 21,913 | ||||||
TOTAL LIABILITIES | $ | 141,879 | $ | 142,252 | ||||
STOCKHOLDERS’ EQUITY
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Common stock | $ | 456 | $ | 614 | ||||
Additional paid-in capital | 137,569 | 432,538 | ||||||
Treasury stock, at cost | (122,749 | ) | (824,382 | ) | ||||
Retained earnings | 559,714 | 912,078 | ||||||
Accumulated other comprehensive loss | (22,726 | ) | (5,660 | ) | ||||
TOTAL STOCKHOLDERS’ EQUITY | 552,264 | 515,188 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 694,143 | $ | 657,440 |
(In thousands)
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Twelve Months Ended
August 31,
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2012
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2011
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CASH FLOWS FROM OPERATING ACTIVITIES
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Net income
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$ | 188,809 | $ | 171,046 | ||||
Adjustments to reconcile net income to net cash provided by operating activities
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Depreciation and amortization
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33,779 | 36,847 | ||||||
Stock-based compensation expense
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21,982 | 25,773 | ||||||
Deferred income taxes
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(3,760 | ) | (1,806 | ) | ||||
Gain on sale of assets
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- | (22 | ) | |||||
Tax benefits from share-based payment arrangements
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(11,159 | ) | (18,331 | ) | ||||
Changes in assets and liabilities, net of effects of acquisition
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Accounts receivable, net of reserves
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2,083 | (15,311 | ) | |||||
Accounts payable and accrued expenses
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9 | 715 | ||||||
Accrued compensation
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519 | (7,882 | ) | |||||
Deferred fees
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(2,573 | ) | 3,219 | |||||
Taxes payable, net of prepaid taxes
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4,209 | 20,387 | ||||||
Prepaid expenses and other assets
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(445 | ) | (6,579 | ) | ||||
Deferred rent and other non-current liabilities
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(905 | ) | (483 | ) | ||||
Other working capital accounts, net
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(583 | ) | (437 | ) | ||||
Net cash provided by operating activities
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231,965 | 207,136 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES
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Acquisition of business, net of cash acquired
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(21,329 | ) | - | |||||
Purchases of investments
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(15,000 | ) | - | |||||
Purchases of property, equipment and leasehold improvements, net of proceeds from dispositions
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(22,520 | ) | (29,343 | ) | ||||
Net cash used in investing activities
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(58,849 | ) | (29,343 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES
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Dividend payments
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(49,983 | ) | (43,949 | ) | ||||
Repurchase of common stock
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(153,641 | ) | (216,584 | ) | ||||
Proceeds from employee stock plans
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33,747 | 43,079 | ||||||
Tax benefits from share-based payment arrangements
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11,159 | 18,331 | ||||||
Net cash used in financing activities
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(158,718 | ) | (199,123 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents
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(7,039 | ) | 7,274 | |||||
Net increase (decrease) in cash and cash equivalents
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7,359 | (14,056 | ) | |||||
Cash and cash equivalents at beginning of period
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181,685 | 195,741 | ||||||
Cash and cash equivalents at end of period
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$ | 189,044 | $ | 181,685 |
(Unaudited)
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Three Months Ended
August 31,
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2012
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2011
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Change
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GAAP Diluted earnings per common share
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$ | 1.08 | $ | 0.88 | ||||||||
Incremental stock-based compensation, net of tax (a)
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- | 0.08 | ||||||||||
Sub-total
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$ | 1.08 | $ | 0.96 | 13 | % | ||||||
Stock-based compensation, net of tax (b)
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0.07 | 0.07 | ||||||||||
Amortization of intangible assets from acquisitions, net of tax
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0.03 | 0.03 | ||||||||||
Non-GAAP diluted earnings per share
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$ | 1.18 | $ | 1.06 | 11 | % | ||||||
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(a)
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To add-back a stock-based compensation charge of $0.08 per diluted share related to an increase in the estimated number of performance-based options that will vest. The revised estimate reflected a higher performance level than previously estimated and accordingly, increased the number of performance-based options that will vest and be expensed.
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(b)
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Stock-based compensation, net of tax, during each quarterly period when excluding non-recurring charges.
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