ARLINGTON, Va., May 2, 2012 /PRNewswire/ -- The Corporate Executive Board Company ("CEB" or the "Company") (NYSE: EXBD) today announces financial results for the first quarter ended March 31, 2012. Revenues increased 13.1% to $128.5 million for the first quarter of 2012 from $113.6 million for the first quarter of 2011. Income from continuing operations for the first quarter of 2012 was $15.6 million, or $0.46 per diluted share, compared to $12.1 million, or $0.35 per diluted share, for the same period of 2011. Adjusted net income was $15.8 million and non-GAAP diluted earnings per share was $0.47 in the first quarter of 2012 compared to $12.1 million and $0.35 for the same period of 2011, respectively.

Contract Value at March 31, 2012 increased 10.3% to $490.2 million compared to $444.6 million at March 31, 2011. Wallet retention rate at March 31, 2012 was 99% compared to 104% at March 31, 2011. Contract Value per member institution increased 1.5% at March 31, 2012 to $85,535 from $84,296 at March 31, 2011.

"We started the year by delivering steady financial performance and making further progress against our strategic objectives," said Thomas Monahan, Chairman and Chief Executive Officer. "Our teams continued to secure important relationships, and laid the foundation for additional growth in 2012. We also strengthened our product portfolio with the previously-announced acquisition of Valtera and the launch of IT Roadmap Builder, the first offering on our newly-developed visualization technologies platform. We are on track to achieve our 2012 outlook."

OUTLOOK FOR 2012

The Company reaffirms its 2012 annual guidance of Revenues of $535 to $555 million; Non-GAAP diluted earnings per share of $1.75 to $2.00; Depreciation and amortization expense of $20 to $22 million; capital expenditures of $12 to $15 million; and an Adjusted EBITDA margin of between 23.0% and 24.0%.

QUARTERLY DIVIDEND

The Company today announces that its Board of Directors has approved a cash dividend on its common stock for the second quarter of 2012 of $0.175 per share. The Company will fund its dividend payments with cash on hand and cash generated from operations. The dividend is payable on June 29, 2012 to stockholders of record at the close of business on June 15, 2012.

NON-GAAP FINANCIAL MEASURES

This press release and the accompanying tables, as well as earnings discussions, includes a discussion of Adjusted EBITDA, Adjusted net income, and Non-GAAP diluted earnings per share, which are non-GAAP financial measures provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The term "Adjusted EBITDA" refers to a financial measure that we define as net income before loss from discontinued operations, net of provision for income taxes; interest income, net; depreciation and amortization; provision for income taxes; acquisition related costs; costs associated with exit activities; restructuring costs; and gain on acquisition. The term "Adjusted net income" refers to net income before loss from discontinued operations, net of provision for income taxes and excludes the after tax effects of acquisition related costs, costs associated with exit activities, restructuring costs, and gain on acquisition. "Non-GAAP diluted earnings per share" refers to diluted earnings per share before the per share effect of loss from discontinued operations, net of provision for income taxes and excludes the after tax per share effects of acquisition related costs, costs associated with exit activities, restructuring costs, and gain on acquisition.

We believe that Adjusted EBITDA, Adjusted net income, and Non-GAAP diluted earnings per share are relevant and useful supplemental information for our investors. We use these non-GAAP financial measures for internal budgeting and other managerial purposes, when publicly providing the Company's business outlook and as a measurement for potential acquisitions. A limitation associated with Adjusted EBITDA is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in our business. Management evaluates the costs of such tangible and intangible assets through other financial measures such as capital expenditures. Management compensates for these limitations by also relying on the comparable GAAP financial measure of Operating profit, which includes depreciation and amortization.

These non-GAAP measures may be considered in addition to results prepared in accordance with GAAP, but they should not be considered a substitute for, or superior to, GAAP results. We intend to continue to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting.

A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure is provided below.

                                          Three Months
                                             Ended
                                           March 31,
                                         2012      2011
                                         ----      ----
    Net income                        $15,561   $11,354
    Loss from discontinued
     operations, net of provision
     for income taxes                       -       706
                                          ---       ---
    Income from continuing
     operations                        15,561    12,060
    Interest income, net                  (77)     (314)
    Depreciation and amortization       5,029     4,055
    Provision for income taxes         10,994     8,322
    Acquisition related costs             476         -
                                          ---       ---
    Adjusted EBITDA                   $31,983   $24,123
                                      =======   =======


                                                 Three Months
                                                    Ended
                                                  March 31,
                                                2012      2011
                                                ----      ----
    Net income                               $15,561   $11,354
    Loss from discontinued operations, net
     of provision for income taxes                 -       706
                                                 ---       ---
    Income from continuing operations         15,561    12,060
    Acquisition related costs                    279         -
                                                 ---       ---
    Adjusted net income                      $15,840   $12,060
                                             =======   =======


                                               Three Months
                                                  Ended
                                                March 31,
                                              2012    2011
                                              ----    ----
    Earnings per diluted share               $0.46   $0.33
    Loss from discontinued operations, net
     of provision for income taxes               -    0.02
                                               ---    ----
    Earnings per diluted share from
     continuing operations                    0.46    0.35
    Acquisition related costs                 0.01       -
                                              ----     ---
    Non-GAAP earnings per diluted share      $0.47   $0.35
                                             =====   =====

With respect to the Company's 2012 annual guidance, reconciliations of GAAP diluted earnings per share to Non-GAAP diluted earnings per share, net income to Adjusted net income, and net income to Adjusted EBITDA as projected for 2012 are not provided because the Company cannot, without unreasonable effort, determine the components of net income and GAAP diluted earnings per share to provide reconciliations for 2012 with certainty at this time.

INVESTOR DAY

CEB will hold its annual Investor Day for institutional investors and sell-side analysts at its Waterview headquarters in Arlington, Virginia on Thursday, May 17, 2012. At the Investor Day, members of the Company's senior leadership team will review the Company's business portfolio, strategy for growth, and financial performance. The Investor Day is by invitation only and registration is required. It will also be webcast live via the Internet on the Company's web site at www.exbd.com and a replay will be available on our website following the event.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements using words such as "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts" and variations of such words or similar expressions are intended to identify forward-looking statements. In addition, statements about anticipated future financial results, such as our 2012 annual guidance, are forward-looking statements. You are hereby cautioned that these statements are based upon our expectations at the time we make them and may be affected by important factors including, among others, the factors set forth below and in our filings with the U.S. Securities and Exchange Commission, and consequently, actual operations and results may differ materially from the results discussed in the forward-looking statements. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. Factors that could cause actual results to differ materially from those indicated by forward-looking statements include, among others, our dependence on renewals of our membership-based services, the sale of additional programs to existing members and our ability to attract new members, our potential failure to adapt to changing member needs and demands, our potential inability to attract and retain a significant number of highly skilled employees, risks associated with the results of restructuring plans, fluctuations in operating results, our potential inability to protect our intellectual property rights, our potential exposure to loss of revenue resulting from our unconditional service guarantee, exposure to litigation related to our content, various factors that could affect our estimated income tax rate or our ability to use our existing deferred tax assets, changes in estimates or assumptions used to prepare our financial statements, our potential inability to make, integrate and maintain acquisitions and investments, the amount and timing of the benefits expected from acquisitions and investments, and our potential inability to effectively anticipate, plan for and respond to changing economic and financial markets conditions, especially in light of ongoing uncertainty in the worldwide economy and possible volatility of our stock price. These and other factors are discussed more fully in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of our filings with the U.S. Securities and Exchange Commission, including, but not limited to, our 2011 Annual Report on Form 10-K. The forward-looking statements in this press release are made as of May 2, 2012, and we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

ABOUT THE CORPORATE EXECUTIVE BOARD COMPANY

By identifying and building on the proven best practices of the world's best companies, CEB helps senior executives and their teams drive corporate performance. CEB offers comprehensive data analysis, research and advisory services that align to executive leadership roles and key recurring decisions. CEB tools, insights, and analysis empower member companies to focus efforts, move quickly, and address emerging and enduring business challenges with confidence. CEB's client and member network includes 85 percent of the Fortune 500, 50 percent of the Dow Jones Asian Titans, and 70 percent of the FTSE 100. It spans more than 50 countries, 5,700 individual organizations, and 225,000 business professionals. For more information, visit www.exbd.com.

                                     THE CORPORATE EXECUTIVE BOARD COMPANY
                              Financial Highlights and Other Operating Statistics
                                                  (Unaudited)

                                                       Selected                             Three Months Ended
                                                      Percentage                                 March 31,
                                                        Changes                                2012                     2011
                                                        -------                                ----                     ----
    Financial Highlights:
    (In thousands, except per share data)

    Revenues                                                           13.1%               $128,467                 $113,623
    Income from
     continuing
     operations                                                        29.0%                $15,561                  $12,060
    Net income                                                         37.1%                $15,561                  $11,354
    Adjusted net
     income                                                            31.3%                $15,840                  $12,060
    Earnings per
     diluted share
     from
     continuing
     operations                                                        31.4%                  $0.46                    $0.35
    Non-GAAP
     earnings per
     diluted share                                                     34.3%                  $0.47                    $0.35

    Other Operating Statistics:
    Contract Value
     (in
     thousands)*                                                       10.3%               $490,213                 $444,636
    Member
     institutions                                                       8.6%                  5,731                    5,275
    Contract Value
     per member
     institution                                                        1.5%                $85,535                  $84,296
    Wallet retention rate**                                                                      99%                     104%

    * We define "Contract Value," at the end of the quarter, as the aggregate annualized revenue attributed to all agreements
     in effect on such date, without regard to the remaining duration of any such agreement.

    ** We define "Wallet retention rate," at the end of the quarter, as the total current year Contract Value from prior year
     members as a percentage of the total prior year Contract Value.

                THE CORPORATE EXECUTIVE BOARD COMPANY
                       Statements of Operations
                (In thousands, except per share data)

                                            Three Months Ended
                                                 March 31,
                                                 ---------
                                               2012                    2011
                                               ----                    ----
                                                (Unaudited)
    Revenues                               $128,467                $113,623

    Cost and expenses:
        Cost of
         services                            43,651                  39,786
        Member
         relations
         and
         marketing                           38,178                  34,944
        General
         and
         administrative                      16,464                  15,961
         Depreciation
         and
         amortization                         5,029                   4,055
                                              -----                   -----
          Total
           costs
           and
           expenses                         103,322                  94,746
                                            -------                  ------

     Operating
     profit                                  25,145                  18,877
    Other
     income,
     net(1)                                   1,410                   1,505
                                              -----                   -----
    Income
     from
     continuing
     operations
     before
     provision
     for
     income
     taxes                                   26,555                  20,382
     Provision
     for
     income
     taxes                                   10,994                   8,322
                                             ------                   -----
    Income
     from
     continuing
     operations                              15,561                  12,060
    Loss
     from
     discontinued
     operations,
     net of
     provision
     for
     income
     taxes                                        -                    (706)
                                                ---                    ----
    Net
     income                                 $15,561                 $11,354
                                            =======                 =======

    Basic
     earnings
     (loss)
     per
     share                                    $0.47                   $0.33
         Continuing
         operations                            0.47                    0.35
         Discontinued
         operations                             $ -                  $(0.02)

    Diluted
     earnings
     (loss)
     per
     share                                    $0.46                   $0.33
         Continuing
         operations                            0.46                    0.35
         Discontinued
         operations                             $ -                  $(0.02)

    Weighted average shares
     outstanding
        Basic                                33,327                  34,351
        Diluted                              33,661                  34,746

    Percentages of Revenues
    Cost of
     services                                  34.0%                   35.0%
    Member
     relations
     and
     marketing                                 29.7%                   30.8%
    General
     and
     administrative                            12.8%                   14.0%
     Depreciation
     and
     amortization                               3.9%                    3.6%
     Operating
     profit                                    19.6%                   16.6%
     Adjusted
     EBITDA(2)                                 24.9%                   21.2%

    (1) Other income, net for the three months ended March 31, 2012
     includes $0.1 million of interest income, a $1.1 million increase in
     the fair value of deferred compensation plan assets, and a $0.2
     million foreign currency gain. Other income, net for the three months
     ended March 31, 2011 includes $0.3 million of interest income, a $0.6
     million increase in the fair value of deferred compensation plan
     assets, and a $0.6 million foreign currency gain.


    (2) See "NON-GAAP Financial Measures" for further explanation.


                           THE CORPORATE EXECUTIVE BOARD COMPANY
                           CONDENSED CONSOLIDATED BALANCE SHEETS
                                      (In thousands)

                                          Mar. 31, 2012          Dec. 31, 2011
                                          -------------          -------------
                                           (Unaudited)
    Assets
    Current
     assets:
        Cash and
         cash
         equivalents                                    $208,699          $133,429
        Marketable
         securities                                        3,748             3,794
        Membership
         fees
         receivable,
         net                                              95,628           154,255
        Deferred
         income
         taxes, net                                       17,255            17,844
        Deferred
         incentive
         compensation                                     18,839            17,330
        Prepaid
         expenses
         and other
         current
         assets                                           14,813            21,624
                                                          ------            ------
            Total
             current
             assets                                      358,982           348,276

    Deferred
     income
     taxes, net                                           17,360            20,490
    Marketable
     securities                                            6,670             6,722
    Property and
     equipment,
     net                                                  82,337            80,981
    Goodwill                                              40,287            29,492
    Intangible
     assets, net                                          21,166            13,581
    Other non-
     current
     assets                                               35,613            34,150
                                                          ------            ------
            Total assets                                $562,415          $533,692
                                                        ========          ========

    Liabilities
     and
     stockholders'
     equity
    Current
     liabilities:
        Accounts
         payable and
         accrued
         liabilities                                     $35,723           $46,067
        Accrued
         incentive
         compensation                                     41,482            37,884
        Deferred
         revenues                                        308,749           284,935
                                                         -------           -------
            Total
             current
             liabilities                                 385,954           368,886

    Deferred
     income
     taxes                                                 1,354             1,436
    Other
     liabilities                                          85,870            83,806
                                                          ------            ------
            Total
             liabilities                                 473,178           454,128

    Total
     stockholders'
     equity                                               89,237            79,564
                                                          ------            ------
            Total
             liabilities
             and
             stockholders'
             equity                                     $562,415          $533,692
                                                        ========          ========


               THE CORPORATE EXECUTIVE BOARD COMPANY
               CONSOLIDATED STATEMENTS OF CASH FLOWS
                          (In thousands)

                                             Three Months Ended
                                                  March 31,
                                                  ---------
                                                 2012                2011
                                                 ----                ----
    CASH FLOWS FROM OPERATING
     ACTIVITIES:                                 (Unaudited)
    Net income                                $15,561             $11,354
    Adjustments to reconcile
     net income to net cash
     flows provided by
     operating activities:
        Depreciation and
         amortization                           5,029               4,258
        Deferred income taxes                   1,326               1,535
        Share-based compensation                1,968               2,004
        Excess tax benefits from
         share-based compensation
         arrangements                          (1,311)             (1,396)
        Foreign currency
         translation gain                        (180)               (695)
        Amortization of marketable
         securities premiums                       29                  69
        Changes in operating
         assets and liabilities:
            Membership fees
             receivable, net                   60,236              51,934
            Deferred incentive
             compensation                      (1,481)             (1,435)
            Prepaid expenses and other
             current assets                     7,358                (584)
            Other non-current assets           (1,430)             (1,329)
            Accounts payable and
             accrued liabilities              (13,016)            (10,413)
            Accrued incentive
             compensation                       3,470              (2,009)
            Deferred revenues                  23,765              30,378
            Other liabilities                     769               1,317
                                                  ---               -----
                Net cash flows provided by
                 operating activities         102,093              84,988

    CASH FLOWS FROM INVESTING
     ACTIVITIES:
    Purchases of property and
     equipment                                 (1,082)             (2,602)
    Acquisition of businesses,
     net of cash acquired                     (20,982)                  -
    Cost method investment                          -                (150)
                                                  ---                ----
        Net cash flows used in
         investing activities                 (22,064)             (2,752)

    CASH FLOWS FROM FINANCING
     ACTIVITIES:
    Proceeds from the exercise
     of common stock options                      771                 774
    Proceeds from the issuance
     of common stock under the
     employee stock purchase
     plan                                         128                 108
    Excess tax benefits from
     share-based compensation
     arrangements                               1,311               1,396
    Purchases of treasury
     shares                                    (1,570)             (1,786)
    Payment of dividends                       (5,833)             (5,145)
                                               ------              ------
        Net cash flows used in
         financing activities                  (5,193)             (4,653)

    Effect of exchange rates
     on cash                                      434                 567
                                                  ---                 ---

    NET INCREASE IN CASH AND
     CASH EQUIVALENTS                          75,270              78,150
    Cash and cash equivalents,
     beginning of period                      133,429             102,498
                                              -------             -------
    Cash and cash equivalents,
     end of period                           $208,699            $180,648
                                             ========            ========

SOURCE The Corporate Executive Board Company