For the month of April 2011
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Commission File Number: 1-31349
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THOMSON REUTERS CORPORATION
(Registrant)
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By:
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/s/ Marc E. Gold
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Name: Marc E. Gold
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Title: Assistant Secretary
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Date: April 28, 2011
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Exhibit Number
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Description
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News release dated April 28, 2011 – Thomson Reuters Reports First-Quarter 2011 Results
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·
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Revenue growth continues to accelerate; up 5% before currency
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·
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Underlying operating profit up 1% (8% before one-time charges)
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Underlying operating profit margin was 17.2% (18.4% before one-time charges)
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Adjusted earnings per share were $0.39 ($0.42 before one-time charges) vs. $0.36 in first quarter 2010
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2011 Outlook affirmed
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Three Months Ended March 31,
(Millions of U.S. dollars, except EPS and margin)
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||||||||||||||||
IFRS Financial Measures
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2011
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2010
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Change
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|||||||||||||
Revenues
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$ | 3,330 | $ | 3,140 | 6 | % | ||||||||||
Operating profit
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$ | 396 | $ | 321 | 23 | % | ||||||||||
Diluted earnings per share (EPS)
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$ | 0.30 | $ | 0.15 | 100 | % | ||||||||||
Cash flow from operations
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$ | 124 | $ | 209 | -41 | % | ||||||||||
Non-IFRS Financial Measures1
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2011 | 2010 |
Change
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Change Before Currency
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||||||||||||
Revenues from ongoing businesses
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$ | 3,240 | $ | 3,057 | 6 | % | 5 | % | ||||||||
Adjusted EBITDA
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$ | 751 | $ | 725 | 4 | % | 3 | % | ||||||||
Adjusted EBITDA margin
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23.2 | % | 23.7 | % | -50 | bp | ||||||||||
Underlying operating profit
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$ | 556 | $ | 550 | 1 | % | 0 | % | ||||||||
Underlying operating profit margin
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17.2 | % | 18.0 | % | -80 | bp | ||||||||||
Adjusted earnings per share (EPS)
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$ | 0.39 | $ | 0.36 | 8 | % | ||||||||||
Underlying free cash flow
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$ | 13 | $ | 107 | -88 | % |
·
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Revenues from ongoing businesses were $3.2 billion, a 5% increase before currency. Strong growth across the Professional division, up 8%, and a 2% increase in the Markets division revenues contributed to the overall increase.
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Adjusted EBITDA increased 4%, and the corresponding margin was 23.2% versus 23.7% in the prior-year period. Flow-through from higher revenues and synergy savings in Markets were partly offset by $39 million of one-time charges and the dilutive effects of 2010 acquisitions. Adjusted EBITDA margin, excluding these one-time charges, was 24.4%.
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Underlying operating profit increased 1% and the corresponding margin was 17.2% (18.4% excluding one-time charges), versus 18.0% in the same period in 2010. Underlying operating profit growth across both divisions was partly offset by the one-time charges.
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Adjusted EPS was $0.39 compared to $0.36 in the prior-year period. The increase was largely attributable to lower integration costs and higher underlying operating profit. Adjusted EPS prior to one-time charges was $0.42.
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Three Months Ended March 31,
(Millions of U.S. dollars, except margin)
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||||||||||||||||||||||||
2011
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2010
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Change
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Change Before Currency
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|||||||||||||||||||||
Revenues
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||||||||||||||||||||||||
Legal
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$ | 885 | $ | 799 | 11 | % | 10 | % | ||||||||||||||||
Tax & Accounting
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$ | 272 | $ | 260 | 5 | % | 4 | % | ||||||||||||||||
Healthcare & Science
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$ | 220 | $ | 208 | 6 | % | 6 | % | ||||||||||||||||
Professional Division Total
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$ | 1,377 | $ | 1,267 | 9 | % | 8 | % | ||||||||||||||||
Margin
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Adjusted EBITDA
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2011 | 2010 | ||||||||||||||||||||||
Legal
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$ | 291 | $ | 278 | 5 | % | 32.9 | % | 34.8 | % | ||||||||||||||
Tax & Accounting
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$ | 66 | $ | 57 | 16 | % | 24.3 | % | 21.9 | % | ||||||||||||||
Healthcare & Science
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$ | 62 | $ | 62 | 0 | % | 28.2 | % | 29.8 | % | ||||||||||||||
Professional Division Total
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$ | 419 | $ | 397 | 6 | % | 5 | % | 30.4 | % | 31.3 | % | ||||||||||||
Operating profit
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Legal
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$ | 216 | $ | 210 | 3 | % | 24.4 | % | 26.3 | % | ||||||||||||||
Tax & Accounting
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$ | 41 | $ | 35 | 17 | % | 15.1 | % | 13.5 | % | ||||||||||||||
Healthcare & Science
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$ | 44 | $ | 44 | 0 | % | 20.0 | % | 21.2 | % | ||||||||||||||
Professional Division Total
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$ | 301 | $ | 289 | 4 | % | 4 | % | 21.9 | % | 22.8 | % |
·
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Revenues were up 8%, driven by solid growth across all businesses, in particular Legal which grew 10% driven by growth in revenues across all major units and acquisitions.
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EBITDA increased 6% compared to the prior-year period. The corresponding margin was 30.4% compared to 31.3% for the prior year. The decline in margin was due to $11 million in one-time charges and the dilutive effect from 2010 acquisitions.
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Operating profit was up 4% compared to the prior-year period. The corresponding margin was 21.9% compared to 22.8% for the prior year. The decline in margin was due to one-time charges and the dilutive effect from 2010 acquisitions.
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Excluding one-time charges, EBITDA margin was 31.2% versus 31.3% in the prior-year period, and the operating profit margin was 22.7% versus 22.8% for the same period a year ago.
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Revenues increased 10% from the prior-year period largely helped by acquisitions. Subscription revenues grew 8%, led by 16% growth in FindLaw. Corporate, Government and Academic revenues increased 12%. Non-subscription revenues increased 26% primarily due to strong sales at our Elite
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EBITDA increased 5% and the associated margin was 32.9% and included $10 million in one-time charges and the dilutive effect of acquisitions. Excluding one-time charges, EBITDA rose 8% and the associated margin was 34.0%.
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Operating profit increased 3% and the associated margin was 24.4%. Excluding one-time charges, operating profit rose 8% and the related margin was 25.5%.
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WestlawNext has been sold to over 18,500 customers since its launch in February 2010 – representing 34% of Westlaw’s revenue base. Customer feedback continues to be extremely positive.
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Revenues were up 4%. Workflow & Service Solutions (two-thirds of the segment’s revenues) grew 5%, led by growth in income tax software products, global tax technology products and acquisitions. Business Compliance & Knowledge Solutions revenues grew 3%, as online (including Checkpoint) growth of 12% and acquisitions were partly offset by a decline in print, which comprised 8% of Tax & Accounting’s first-quarter revenues.
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EBITDA increased 16% and the related margin increased 240 basis points to 24.3%.
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Operating profit increased 17% and the related margin increased 160 basis points to 15.1%.
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EBITDA and operating profit growth was driven by strong flow-through from revenues and the results of efficiency initiatives. Tax & Accounting is a seasonal business with nearly 50% of its operating profit traditionally generated in the fourth quarter.
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Revenues grew 6% from the prior-year period. Growth was driven by continued demand for healthcare spending analytics in the Payer business, which was up double-digit. Scientific & Scholarly Research was down 2%, primarily due to timing related to a significant backfiles sale in the first quarter of 2010. Life Sciences revenues increased 14% due to strong demand for biology and disease analytics products and the GeneGo acquisition.
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EBITDA was flat with the corresponding margin decreasing to 28.2%.
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Operating profit was flat with the corresponding margin decreasing to 20.0%. The decline in EBITDA and operating profit margins was due to timing of revenues and a difficult prior-year comparison.
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Three Months Ended March 31,
(Millions of U.S. dollars, except margin)
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||||||||||||||||
2011
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2010
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Change
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Change Before Currency
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Revenues
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Sales & Trading
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$ | 927 | $ | 890 | 4 | % | 2 | % | ||||||||
Investment & Advisory
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$ | 560 | $ | 559 | 0 | % | -1 | % | ||||||||
Enterprise
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$ | 296 | $ | 263 | 13 | % | 10 | % | ||||||||
Media
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$ | 82 | $ | 80 | 2 | % | 1 | % | ||||||||
Markets Division Total
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$ | 1,865 | $ | 1,792 | 4 | % | 2 | % | ||||||||
Adjusted EBITDA
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$ | 471 | $ | 475 | -1 | % | -3 | % | ||||||||
Adjusted EBITDA Margin %
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25.3 | % | 26.5 | % | ||||||||||||
Operating Profit
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$ | 330 | $ | 318 | 4 | % | 2 | % | ||||||||
Operating Profit Margin %
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17.7 | % | 17.7 | % |
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Revenues increased 2%. By segment, strong revenue growth in Enterprise, Commodities & Energy and Tradeweb was partly offset by weakness in Investment Management and Exchange Traded Instruments.
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Recurring subscription-related revenues increased 2%. Revenue growth would have been 3% absent a 5% decline in recoveries (pass-through revenues from third party services such as exchange fees). Transactions-related revenues increased 15%, primarily due to the change in the company’s ownership in Tradeweb. Outright revenues increased 3%.
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By geography, revenues in the first quarter grew across all major regions of the world. Asia increased 3%, while Europe, Middle East and Africa (EMEA) increased 2% and the Americas increased 2%.
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EBITDA was $471 million, down 1%, with the related margin of 25.3%.
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Operating profit was $330 million, up 4%, with a related margin of 17.7%.
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EBITDA and operating profit margin included a one-time charge of approximately $28 million.
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Excluding the one-time charge, EBITDA margin was 26.8% (up 30 basis points versus a year ago) and the operating margin was 19.2% (up 150 basis points versus a year ago).
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Markets has sold or migrated more than 19,000 Thomson Reuters Eikon desktops since the launch of its new flagship desktop offering in September 2010.
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Revenues were up 2% driven by Tradeweb growth of 35%, primarily due to the change in the company’s ownership in the business. Revenue growth was partly offset by a 9% decline in recoveries.
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The Treasury business grew 1% with growth impacted by 2010 subscription cancellations.
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Revenues from Commodities & Energy grew 9% primarily due to an acquisition, while Exchange Traded Instruments declined 6%, due to planned shutdowns of low-margin products and the continued reduction of recoveries revenues as exchanges move to direct billing.
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Revenues declined 1%. A 3% increase in Corporates and a 1% increase in Wealth Management was not enough to offset weak performance in Investment Management which declined 4% - an improvement over the 10% annual decline in 2010.
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An integrated plan has been established to improve the performance of the Investment Management unit, including a change in management, changes in the “go-to-market” strategy as well as longer-term product enhancements culminating in the planned release of Thomson Reuters Eikon for Investment Management later in the year.
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Revenues grew 10%, driven by continued strong customer demand. The Enterprise Real Time Solutions business grew 10% as customers continued to invest in low-latency data feeds and hosting solutions. The Enterprise Content business grew 17%, driven by growth in pricing and reference data. The Platform business grew 4%, driven by strong sales of recurring products. Omgeo’s revenues increased 7% due to strong equity volumes.
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Thomson Reuters Elektron continued to gain momentum as customers in established and emerging markets adopted its combination of hosted and deployed information and trading solutions. In total, 12 data hosting centers are up and running with India having opened in the first quarter and Brazil scheduled to open in the second quarter.
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Revenues increased 1% driven by flow-through from good sales in the second half of 2010.
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The Consumer business grew 6% in the first quarter, due to a pickup in online advertising sales across all global properties, while the News Agency business was flat.
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MEDIA
Calvin Mitchell
Senior Vice President, Corporate Affairs
+1 646 223 5285
calvin.mitchell@thomsonreuters.com
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INVESTORS
Frank J. Golden
Senior Vice President, Investor Relations
+1 646 223 5288
frank.golden@thomsonreuters.com
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Three Months Ended
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March 31,
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2011
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2010
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Change
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Organic
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Revenues
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Legal (1)
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$ | 885 | $ | 799 | 11 | % | 4 | % | ||||||||
Tax & Accounting (1)
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272 | 260 | 5 | % | 3 | % | ||||||||||
Healthcare & Science
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220 | 208 | 6 | % | 5 | % | ||||||||||
Professional Division
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1,377 | 1,267 | 9 | % | 4 | % | ||||||||||
Sales & Trading
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927 | 890 | 4 | % | 0 | % | ||||||||||
Investment & Advisory
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560 | 559 | 0 | % | -1 | % | ||||||||||
Enterprise (1)
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296 | 263 | 13 | % | 10 | % | ||||||||||
Media
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82 | 80 | 2 | % | 1 | % | ||||||||||
Markets Division
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1,865 | 1,792 | 4 | % | 1 | % | ||||||||||
Eliminations
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(2 | ) | (2 | ) | ||||||||||||
Revenues from ongoing businesses (2)
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3,240 | 3,057 | 6 | % | 2 | % | ||||||||||
Before currency
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5 | % | ||||||||||||||
Disposals (1), (2)
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90 | 83 | ||||||||||||||
Revenues
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$ | 3,330 | $ | 3,140 | 6 | % | ||||||||||
Adjusted EBITDA
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Legal (1)
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$ | 291 | $ | 278 | 5 | % | ||||||||||
Tax & Accounting (1)
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66 | 57 | 16 | % | ||||||||||||
Healthcare & Science
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62 | 62 | 0 | % | ||||||||||||
Professional Division
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419 | 397 | 6 | % | ||||||||||||
Markets Division (1)
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471 | 475 | -1 | % | ||||||||||||
Core corporate expenses
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(69 | ) | (50 | ) | ||||||||||||
Integration programs expenses
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(70 | ) | (97 | ) | ||||||||||||
Adjusted EBITDA
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$ | 751 | $ | 725 | 4 | % | ||||||||||
Underlying Operating Profit
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Legal (1)
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$ | 216 | $ | 210 | 3 | % | ||||||||||
Tax & Accounting (1)
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41 | 35 | 17 | % | ||||||||||||
Healthcare & Science
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44 | 44 | 0 | % | ||||||||||||
Professional Division
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301 | 289 | 4 | % | ||||||||||||
Markets Division (1)
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330 | 318 | 4 | % | ||||||||||||
Core corporate expenses
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(75 | ) | (57 | ) | ||||||||||||
Underlying operating profit
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$ | 556 | $ | 550 | 1 | % |
Three Months Ended
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March 31,
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||||||||||||
2011
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2010
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Change
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Operating profit
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$ | 396 | $ | 321 | 23 | % | ||||||
Adjustments:
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Amortization of other identifiable intangible assets
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144 | 129 | ||||||||||
Integration programs expenses
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70 | 97 | ||||||||||
Fair value adjustments
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(2 | ) | 9 | |||||||||
Other operating gains, net
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(33 | ) | (1 | ) | ||||||||
Disposals (1)
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(19 | ) | (5 | ) | ||||||||
Underlying operating profit
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$ | 556 | $ | 550 | 1 | % | ||||||
Adjustments:
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Integration programs expenses
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(70 | ) | (97 | ) | ||||||||
Depreciation and amortization of computer software from ongoing businesses (1)
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265 | 272 | ||||||||||
Adjusted EBITDA
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$ | 751 | $ | 725 | 4 | % | ||||||
Underlying operating profit margin
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17.2 | % | 18.0 | % | -80 | bp | ||||||
Adjusted EBITDA margin
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23.2 | % | 23.7 | % | -50 | bp |
Three Months Ended
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March 31,
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2011
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2010
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Change
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Earnings from continuing operations
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$ | 255 | $ | 134 | 90 | % | ||||||
Adjustments:
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Tax expense
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52 | 31 | ||||||||||
Other finance (income) cost, net
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(7 | ) | 63 | |||||||||
Net interest expense
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101 | 93 | ||||||||||
Amortization of other identifiable intangible assets
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144 | 129 | ||||||||||
Amortization of computer software
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164 | 141 | ||||||||||
Depreciation
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107 | 138 | ||||||||||
EBITDA
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$ | 816 | $ | 729 | 12 | % | ||||||
Adjustments:
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Share of post tax earnings in equity method investees
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(5 | ) | - | |||||||||
Other operating gains, net
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(33 | ) | (1 | ) | ||||||||
Fair value adjustments
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(2 | ) | 9 | |||||||||
EBITDA from disposals
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(25 | ) | (12 | ) | ||||||||
Adjusted EBITDA
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$ | 751 | $ | 725 | 4 | % | ||||||
Adjusted EBITDA margin
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23.2 | % | 23.7 | % | -50 | bp |
Three months ended March 31, 2011
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Three months ended March 31, 2010
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Adjustments
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Adjustments
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Operating Profit
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Depreciation
and
Amortization
of Computer Software
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Other
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Adjusted
EBITDA
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Operating Profit
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Depreciation and Amortization of Computer Software
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Other
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Adjusted
EBITDA
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Division and business segment
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Legal (1)
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$ | 216 | $ | 75 | - | $ | 291 | $ | 210 | $ | 68 | - | $ | 278 | ||||||||||||||||||
Tax & Accounting (1)
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41 | 25 | - | 66 | 35 | 22 | - | 57 | ||||||||||||||||||||||||
Healthcare & Science
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44 | 18 | - | 62 | 44 | 18 | - | 62 | ||||||||||||||||||||||||
Professional division
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301 | 118 | - | 419 | 289 | 108 | - | 397 | ||||||||||||||||||||||||
Markets division (1)
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330 | 141 | - | 471 | 318 | 157 | - | 475 | ||||||||||||||||||||||||
Core corporate expenses
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(75 | ) | 6 | - | (69 | ) | (57 | ) | 7 | - | (50 | ) | ||||||||||||||||||||
Integration programs expenses
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(70 | ) | - | - | (70 | ) | (97 | ) | - | - | (97 | ) | ||||||||||||||||||||
Fair value adjustments
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2 | - | (2 | ) | - | (9 | ) | - | 9 | - | ||||||||||||||||||||||
Corporate & Other
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(143 | ) | 6 | (2 | ) | (139 | ) | (163 | ) | 7 | 9 | (147 | ) | |||||||||||||||||||
Ongoing businesses
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488 | 265 | (2 | ) | 751 | 444 | 272 | 9 | 725 | |||||||||||||||||||||||
Disposals (1), (2)
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19 | 6 | (25 | ) | - | 5 | 7 | (12 | ) | - | ||||||||||||||||||||||
Segment totals
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507 | $ | 271 | $ | (27 | ) | $ | 751 | 449 | $ | 279 | $ | (3 | ) | $ | 725 | ||||||||||||||||
Amortization of other identifiable intangible assets
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(144 | ) | (129 | ) | ||||||||||||||||||||||||||||
Other operating gains, net
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33 | 1 | ||||||||||||||||||||||||||||||
Total
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$ | 396 | $ | 321 |
Three Months Ended
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March 31,
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||||||||
2011
|
2010
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|||||||
Earnings attributable to common shareholders
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$ | 250 | $ | 127 | ||||
Adjustments:
|
||||||||
Disposals (1)
|
(19 | ) | (5 | ) | ||||
Fair value adjustments
|
(2 | ) | 9 | |||||
Other operating gains, net
|
(33 | ) | (1 | ) | ||||
Other finance (income) costs
|
(7 | ) | 63 | |||||
Share of post tax earnings in equity method investees
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(5 | ) | - | |||||
Tax on above items(1)
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9 | (4 | ) | |||||
Interim period effective tax rate normalization (6)
|
(10 | ) | (18 | ) | ||||
Amortization of other identifiable intangible assets
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144 | 129 | ||||||
Discontinued operations
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(2 | ) | - | |||||
Dividends declared on preference shares
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(1 | ) | (1 | ) | ||||
Adjusted earnings from continuing operations
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$ | 324 | $ | 299 | ||||
Adjusted earnings per share from continuing operations
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$ | 0.39 | $ | 0.36 | ||||
Diluted weighted average common shares (in millions)
|
839.7 | 834.7 |
(1)
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Results for 2010 restated to reflect the 2011 presentation.
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(2)
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Revenues, operating profit and EBITDA from ongoing businesses exclude the results of disposals, which are defined as businesses sold or held for sale that do not qualify as discontinued operations.
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(3)
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Underlying operating profit excludes amortization of other identifiable intangible assets, certain impairment charges, fair value adjustments, integration programs expense, other operating gains and losses and the results of disposals. Underlying operating profit margin is the underlying operating profit expressed as a percentage of revenues from ongoing businesses.
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(4)
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Thomson Reuters defines adjusted EBITDA as underlying operating profit excluding depreciation and amortization of computer software from ongoing businesses but including integration programs expense. Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of revenues from ongoing businesses.
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(5)
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Adjusted earnings from continuing operations and adjusted earnings per share from continuing operations include dividends declared on preference shares and integration programs expense, 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 disposals (see note (2) above), other net finance (income) costs, Thomson Reuters share of post-tax (earnings) losses in equity method investees, discontinued operations and other items affecting comparability. Adjusted earnings per share from continuing operations is calculated using diluted weighted average shares and does not represent actual earnings per share attributable to shareholders.
|
(6)
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Adjustment to reflect income taxes based on estimated full-year effective tax rate. Reported earnings 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.
|
Three Months Ended
March 31,
|
||||||||
2011
|
2010
|
|||||||
Revenues
|
$ | 3,330 | $ | 3,140 | ||||
Operating expenses
|
(2,552 | ) | (2,412 | ) | ||||
Depreciation
|
(107 | ) | (138 | ) | ||||
Amortization of computer software
|
(164 | ) | (141 | ) | ||||
Amortization of other identifiable intangible assets
|
(144 | ) | (129 | ) | ||||
Other operating gains, net
|
33 | 1 | ||||||
Operating profit
|
396 | 321 | ||||||
Finance costs, net:
|
||||||||
Net interest expense
|
(101 | ) | (93 | ) | ||||
Other finance income (costs)
|
7 | (63 | ) | |||||
Income before tax and equity method investees
|
302 | 165 | ||||||
Share of post tax earnings in equity method investees
|
5 | - | ||||||
Tax expense
|
(52 | ) | (31 | ) | ||||
Earnings from continuing operations
|
255 | 134 | ||||||
Earnings from discontinued operations, net of tax
|
2 | - | ||||||
Net earnings
|
$ | 257 | $ | 134 | ||||
Earnings attributable to:
|
||||||||
Common shareholders
|
250 | 127 | ||||||
Non-controlling interests
|
7 | 7 | ||||||
Basic and diluted earnings per share
|
$ | 0.30 | $ | 0.15 | ||||
Basic weighted average common shares
|
835,171,533 | 830,890,182 | ||||||
Diluted weighted average common shares
|
839,706,309 | 834,740,243 |
March 31,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Assets
|
||||||||
Cash and cash equivalents
|
$ | 611 | $ | 864 | ||||
Trade and other receivables
|
1,895 | 1,809 | ||||||
Other financial assets
|
66 | 74 | ||||||
Prepaid expenses and other current assets
|
919 | 912 | ||||||
Assets held for sale
|
202 | - | ||||||
Current assets
|
3,693 | 3,659 | ||||||
Computer hardware and other property, net
|
1,524 | 1,567 | ||||||
Computer software, net
|
1,617 | 1,613 | ||||||
Other identifiable intangible assets, net
|
8,610 | 8,714 | ||||||
Goodwill
|
18,967 | 18,892 | ||||||
Other financial assets
|
505 | 460 | ||||||
Other non-current assets
|
567 | 558 | ||||||
Deferred tax
|
58 | 68 | ||||||
Total assets
|
$ | 35,541 | $ | 35,531 | ||||
Liabilities and equity
|
||||||||
Liabilities
|
||||||||
Current indebtedness
|
$ | 693 | $ | 645 | ||||
Payables, accruals and provisions
|
2,436 | 2,924 | ||||||
Deferred revenue
|
1,352 | 1,300 | ||||||
Other financial liabilities
|
138 | 142 | ||||||
Liabilities associated with assets held for sale
|
112 | - | ||||||
Current liabilities
|
4,731 | 5,011 | ||||||
Long-term indebtedness
|
6,931 | 6,873 | ||||||
Provisions and other non-current liabilities
|
2,176 | 2,217 | ||||||
Other financial liabilities
|
58 | 71 | ||||||
Deferred tax
|
1,665 | 1,684 | ||||||
Total liabilities
|
15,561 | 15,856 | ||||||
Equity
|
||||||||
Capital
|
10,366 | 10,284 | ||||||
Retained earnings
|
10,527 | 10,518 | ||||||
Accumulated other comprehensive loss
|
(1,268 | ) | (1,480 | ) | ||||
Total shareholders’ equity
|
19,625 | 19,322 | ||||||
Non-controlling interests
|
355 | 353 | ||||||
Total equity
|
19,980 | 19,675 | ||||||
Total liabilities and equity
|
$ | 35,541 | $ | 35,531 |
Three Months Ended
March 31,
|
||||||||
2011
|
2010
|
|||||||
Cash provided by (used in):
|
||||||||
Operating activities
|
||||||||
Net earnings
|
$ | 257 | $ | 134 | ||||
Adjustments for:
|
||||||||
Depreciation
|
107 | 138 | ||||||
Amortization of computer software
|
164 | 141 | ||||||
Amortization of other identifiable intangible assets
|
144 | 129 | ||||||
Deferred tax
|
(32 | ) | (38 | ) | ||||
Other
|
31 | 142 | ||||||
Changes in working capital and other items
|
(547 | ) | (431 | ) | ||||
Operating cash flows from continuing operations
|
124 | 215 | ||||||
Operating cash flows from discontinued operations
|
- | (6 | ) | |||||
Net cash provided by operating activities
|
124 | 209 | ||||||
Investing activities
|
||||||||
Acquisitions, less cash acquired
|
(54 | ) | (63 | ) | ||||
Proceeds from other disposals
|
15 | 14 | ||||||
Capital expenditures, less proceeds from disposals
|
(218 | ) | (214 | ) | ||||
Other investing activities
|
35 | (1 | ) | |||||
Investing cash flows from continuing operations
|
(222 | ) | (264 | ) | ||||
Investing cash flows from discontinued operations
|
21 | - | ||||||
Net cash used in investing activities
|
(201 | ) | (264 | ) | ||||
Financing activities
|
||||||||
Proceeds from debt
|
- | 491 | ||||||
Repayments of debt
|
(5 | ) | (471 | ) | ||||
Net borrowings under short-term loan facilities
|
43 | - | ||||||
Dividends paid on preference shares
|
(1 | ) | (1 | ) | ||||
Dividends paid on common shares
|
(217 | ) | (231 | ) | ||||
Other financing activities
|
- | (6 | ) | |||||
Net cash used in financing activities
|
(180 | ) | (218 | ) | ||||
Translation adjustments on cash and cash equivalents
|
4 | (10 | ) | |||||
Decrease in cash and cash equivalents
|
(253 | ) | (283 | ) | ||||
Cash and cash equivalents at beginning of period
|
864 | 1,111 | ||||||
Cash and cash equivalents at end of period
|
$ | 611 | $ | 828 |
Three Months Ended
March 31,
|
||||||||
2011
|
2010
|
|||||||
Net cash provided by operating activities
|
$ | 124 | $ | 209 | ||||
Capital expenditures, less proceeds from disposals
|
(218 | ) | (214 | ) | ||||
Other investing activities
|
35 | (1 | ) | |||||
Dividends paid on preference shares
|
(1 | ) | (1 | ) | ||||
Free cash flow (1)
|
(60 | ) | (7 | ) | ||||
Integration programs costs
|
73 | 114 | ||||||
Underlying free cash flow (2)
|
$ | 13 | $ | 107 |
(1)
|
Free cash flow is net cash provided by operating activities less capital expenditures, other investing activities and dividends paid on our preference shares. Thomson Reuters uses free cash flow as a performance measure because it represents cash available to repay debt, pay dividends and fund share repurchases and new acquisitions.
|
(2)
|
Underlying free cash flow is free cash flow excluding one-time cash costs associated with integration programs.
|
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