THOMSON REUTERS CORP NEW YORK, April 26, 2016 /PRNewswire/ -- Thomson Reuters (TSX / NYSE: TRI) today reported results for the first quarter ended March 31, 2016. The company also re-affirmed its 2016 full-year outlook.
-- Reported revenues declined 1%. Before currency, revenues grew 1%
-- Excluding recoveries, revenues increased 2% (before currency)
-- Adjusted EBITDA grew 2% to $748 million with a margin of 26.8% vs. 26.0%
in the prior-year period. Currency had a 70 basis point favorable impact
on the margin
-- Underlying operating profit grew 8% to $498 million with a margin of
17.8% vs. 16.3% in the prior-year period. Currency had a 70 basis point
favorable impact on the margin
-- Adjusted earnings per share (EPS) increased 23% to $0.48, an increase of
$0.09 per share. Currency had a $0.01 favorable impact on adjusted EPS
-- Repurchased 11.7 million shares at a cost of $432 million in the first
quarter
-- Sale process for Intellectual Property & Science launched, with a
closing currently expected in the second half of 2016
"The year is off to a solid start," said Jim Smith, president and chief executive officer of Thomson Reuters. "Today's results are in line with our expectations and it is encouraging to see the continued positive trajectory of our business, despite a somewhat volatile and challenging period in external markets during the first quarter."
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Consolidated Financial Highlights
(All amounts from continuing operations, except cash flow measures)
Three Months Ended March 31,
(Millions of U.S. dollars, except EPS and
margins)
-----------------------------------------
IFRS Financial Measures 2016 2015(1) Change
---- ------ ------
Revenues $2,793 $2,821 -1%
Operating profit $310 $362 -14%
Diluted EPS $0.26 $0.33 -21%
Cash flow from operations (includes discontinued $458 $244 88%
operations)
The decreases in operating profit and diluted EPS were primarily due to unfavorable fair value adjustments associated with foreign currency embedded derivatives in certain customer contracts.
Non-IFRS Financial Measures (2) 2016 2015(1) Change Change Before
Currency
--- --------
Revenues $2,793 $2,821 -1% 1%
Adjusted EBITDA $748 $734 2% 1%
Adjusted EBITDA margin 26.8% 26.0% 80bp 10bp
Underlying operating profit $498 $461 8% 6%
Underlying operating profit margin 17.8% 16.3% 150bp 80bp
Adjusted EPS $0.48 $0.39 23% 21%
Free cash flow (includes discontinued operations) $223 ($65) nm (3)
(1) Thomson Reuters is pursuing the sale
of its Intellectual Property &
Science business. Prior-year period
amounts (except cash flow measures)
have therefore been restated to
reflect the reclassification of the
Intellectual Property & Science
business as a discontinued
operation.
(2) These and other non-IFRS financial
measures are defined and reconciled
to the most directly comparable IFRS
measures in the tables appended to
this news release. Additional
information is provided in the
explanatory footnotes to the
appended tables.
(3) nm - not meaningful.
Highlights by Business Unit
Unless otherwise noted, all revenue growth comparisons in this news release are before the impact of foreign currency (constant currency) as Thomson Reuters believes this provides the best basis to measure the performance of its business.
Financial & Risk
-- Revenues declined 1% compared to the prior-year period. However,
revenues grew approximately 2% before the impact of lower recoveries
revenues and commercial pricing adjustments.
-- Recurring revenues (77% of the segment's revenues in the quarter)
increased 1%, benefitting from higher data feeds and risk revenues
as well as an annual price increase, which more than offset lower
revenues resulting from the price adjustments referred to above.
-- Transactions revenues (14% of the segment's revenues in the quarter)
decreased 1% due to lower foreign exchange volumes.
-- Low-margin recoveries revenues (9% of the segment's revenues in the
quarter) were down 13% as some third-party partners continue to move
to direct billing with their customers.
-- As previously disclosed, Financial & Risk's recoveries revenues
are expected to decline approximately $100 million in 2016.
Recoveries represent revenues for content or services provided
by third parties and distributed through Financial & Risk's
platform. This projected reduction in recoveries revenue has no
impact on EBITDA or operating profit.
-- Net sales were again positive overall and were positive in all regions,
except for EMEA. This marked the eighth consecutive quarter of positive
net sales.
-- By geography, revenues in Asia were up 3% and the Americas up 1%, while
revenues in Europe, Middle East and Africa (EMEA) were down 3%.
-- EBITDA increased 9% and the margin increased 320 basis points to 29.0%
compared to 25.8% in the prior-year period. Excluding the impact of
currency, the margin increased 260 basis points. The improving EBITDA
margin reflected savings related to efficiency initiatives and platform
closures completed in 2015.
-- Operating profit increased 22% and the margin increased 400 basis points
to 19.5% compared to 15.5% in the prior-year period. Excluding the
impact of currency, the margin increased 380 basis points. The operating
profit margin improvement reflected the same factors that impacted
EBITDA.
Legal
-- Revenues increased 2%. Excluding US print, revenues grew 3%.
-- Solutions businesses (44% of the segment's revenues in the quarter) grew
3%. Revenue growth was driven by Legal Managed Services (formerly
Pangea3) and businesses in the United Kingdom/Ireland (UKI) and Latin
America. Findlaw revenues declined primarily due to lower transaction
revenues.
-- US online legal information (42% of the segment's revenues in the
quarter) grew 2%, reflecting growth for the fifth consecutive quarter.
-- US print (14% of the segment's revenues in the quarter) declined 3%.
-- EBITDA increased 4% and the margin increased 160 basis points to 36.3%
compared to 34.7% in the prior-year period. Excluding the impact of
currency, the margin increased 40 basis points.
-- Operating profit increased 9% and the margin increased 240 basis points
to 29.0% compared to 26.6% in the prior-year period. Excluding the
impact of currency, the margin increased 120 basis points.
Tax & Accounting
-- Revenues increased 8% driven by the Corporate and Professional
businesses, partially offset by a decline in the Government business.
Recurring revenues (82% of the segment's revenues in the quarter) were
up 11%.
-- EBITDA decreased 10% and the margin decreased 450 basis points to 29.3%
compared to 33.8% in the prior-year period primarily due to severance
charges, growth investments and the benefit of several one-time items in
the first quarter of 2015. Excluding the impact of currency, the margin
declined 580 basis points.
-- Operating profit decreased 15% and the margin decreased 500 basis points
to 21.3% compared to 26.3% in the prior-year period. Excluding the
impact of currency, the margin was down 620 basis points for the same
reasons that drove EBITDA margin performance.
-- The timing of revenues and expenses can impact margins in any given
quarter for the Tax & Accounting business. Full-year margins are more
reflective of the segment's underlying performance.
Corporate & Other (Including Reuters News)
-- Reuters News revenues were $75 million, up $1 million from the
prior-year period.
-- Corporate & Other costs were $118 million compared to $97 million in the
prior-year period. The increase was largely comprised of costs related
to the company's transformation program.
Discontinued Operations - Intellectual Property & Science
-- The company's Intellectual Property & Science business, which is
currently expected to be sold in the second half of 2016, has been
classified as a discontinued operation for 2016 reporting purposes. In
the first quarter of 2016, Intellectual Property & Science's revenues
increased 4%.
2016 Business Outlook (Before Currency)
Thomson Reuters today re-affirmed its full-year business outlook for 2016 which was previously communicated in February 2016. The company's 2016 Outlook assumes constant currency rates compared to 2015 and all metrics below (except for free cash flow) exclude the Intellectual Property & Science business, which has been classified as a discontinued operation for 2016 reporting purposes. The 2016 Outlook is based on the expected performance of the company's remaining businesses and does not factor in the impact of any other acquisitions or divestitures that may occur during the year.
The company expects:
-- Low single-digit revenue growth
-- 2% to 3% revenue growth excluding Financial & Risk's recoveries
revenues, which are low margin revenues and are expected to decline
as partners move to direct billing with their customers
-- Adjusted EBITDA margin to range between 27.3% and 28.3%
-- Comparable 2015 EBITDA margin (excluding Intellectual Property &
Science business) was 27.3%
-- Underlying operating profit margin to range between 18.4% and 19.4%
-- Comparable 2015 underlying operating profit margin (excluding
Intellectual Property & Science business) was 18.1%
-- Free cash flow to range between $1.7 billion and $1.9 billion in 2016
The information in this section is forward-looking and should be read in conjunction with the section below entitled "Special Note Regarding Forward-Looking Statements, Material Assumptions and Material Risks."
Dividend and Share Repurchases
In February 2016, the Thomson Reuters board of directors approved a $0.02 per share annualized increase in the dividend to $1.36 per common share. A quarterly dividend of $0.34 per share is payable on June 15, 2016 to common shareholders of record as of May 19, 2016.
In the first quarter of 2016, the company repurchased approximately 11.7 million shares at a cost of approximately $432 million. Approximately $260 million of these repurchases were part of the $1.5 billion buyback program announced in February 2016.
Thomson Reuters
Thomson Reuters is the world's leading source of news and information for professional markets. Our customers rely on us to deliver the intelligence, technology and expertise they need to find trusted answers. The business has operated in more than 100 countries for more than 100 years. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges (symbol: TRI). For more information, visit www.thomsonreuters.com.
NON-IFRS FINANCIAL MEASURES
Thomson Reuters prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).
This news release includes certain non-IFRS financial measures, such as adjusted EBITDA and the related margin, underlying operating profit and the related margin, free cash flow, adjusted EPS, and selected measures before the impact of foreign currency. Thomson Reuters uses these non-IFRS financial measures as supplemental indicators of its operating performance and financial position. These measures do not have any standardized meanings prescribed by IFRS and therefore are unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in the appended tables.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL ASSUMPTIONS AND MATERIAL RISKS
Certain statements in this news release, including, but not limited to, statements in the "2016 Business Outlook (Before Currency)" section and Mr. Smith's comments, are forward-looking. As a result, forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. There is no assurance that the events described in any forward-looking statement will materialize. A business outlook is provided for the purpose of presenting information about current expectations for 2016. This information may not be appropriate for other purposes. You are cautioned not to place undue reliance on forward-looking statements which reflect expectations only as of the date of this news release. Except as may be required by applicable law, Thomson Reuters disclaims any obligation to update or revise any forward-looking statements.
The company's 2016 Business Outlook is based on various external and internal assumptions. Economic and market assumptions include, but are not limited to, GDP growth in most of the countries where Thomson Reuters operates and a continued increase in the number of professionals around the world and their demand for high quality information and workflow solutions. Internal financial and operational assumptions include, but are not limited to, the successful execution of sales initiatives, ongoing product release programs, our globalization strategy and other growth and efficiency initiatives. The 2016 Business Outlook also assumes that the company's Intellectual Property & Science business will be sold during the year.
The timing for repurchases under the company's $1.5 billion buyback program will depend on the timing for the sale of its Intellectual Property & Science business in addition to other factors, such as market conditions, share price and opportunities to invest capital for growth. There is no assurance that a transaction involving all or part of the company's Intellectual Property & Science business will be completed.
Some of the material risk factors that could cause actual results or events to differ materially from those expressed in or implied by forward-looking statements in this news release include, but are not limited to, changes in the general economy; actions of competitors; failure to develop new products, services, applications and functionalities to meet customers' needs, attract new customers or expand into new geographic markets and identify areas of higher growth; failures or disruptions of telecommunications, network systems or the Internet; fraudulent or unpermitted data access or other cyber-security or privacy breaches; increased accessibility to free or relatively inexpensive information sources; failure to maintain a high renewal rate for subscription-based services; dependency on third parties for data, information and other services; changes to law and regulations, including the impact of the Dodd-Frank legislation and similar financial services laws around the world; tax matters, including changes to tax laws, regulations and treaties; fluctuations in foreign currency exchange and interest rates; failure to adapt to recent organizational changes and effectively implement strategic initiatives; failure to recruit, motivate and retain high quality management and key employees; failure to meet the challenges involved in operating globally; failure to derive fully the anticipated benefits from existing or future acquisitions, joint ventures, investments or dispositions; failure to protect the brands and reputation of Thomson Reuters; impairment of goodwill and identifiable intangible assets; inadequate protection of intellectual property rights; threat of legal actions and claims; risk of antitrust/competition-related claims or investigations; downgrading of credit ratings and adverse conditions in the credit markets; the effect of factors outside of the control of Thomson Reuters on funding obligations in respect of pension and post-retirement benefit arrangements; and actions or potential actions that could be taken by the company's principal shareholder, The Woodbridge Company Limited. These and other factors are discussed in materials that Thomson Reuters from time to time files with, or furnishes to, the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission. Thomson Reuters annual and quarterly reports are also available in the "Investor Relations" section of www.thomsonreuters.com.
CONTACTS
MEDIA INVESTORS
David Crundwell Frank J. Golden
Senior Vice President, Corporate
Affairs Senior Vice President, Investor Relations
+1 646 223 5285 +1 646 223 5288
david.crundwell@tr.com frank.golden@tr.com
Thomson Reuters will webcast a discussion of its first-quarter 2016 results today beginning at 8:30 a.m. Eastern Time (ET). You can access the webcast by visiting the "Investor Relations" section of www.thomsonreuters.com. An archive of the webcast will be available following the presentation.
Thomson Reuters Corporation
Business Segment Information
(millions of U.S. dollars, except for margins)
(unaudited)
Three Months Ended
March 31, Change
---------
2016 2015(1) Total Foreign Before
Currency (4) Currency (4)
----------- -----------
Revenues
--------
Financial & Risk $1,509 $1,552 -3% -2% -1%
Legal 822 824 0% -2% 2%
Tax & Accounting 389 373 4% -4% 8%
Corporate & Other (includes Reuters News) 75 74 1% -3% 4%
Eliminations (2) (2)
--- ---
Revenues $2,793 $2,821 -1% -2% 1%
====== ======
Margin
Adjusted EBITDA (2) Change 2016 2015 Change
------------------ ------ ---- ---- ------
Financial & Risk $437 $401 9% 29.0% 25.8% 320bp
Legal 298 286 4% 36.3% 34.7% 160bp
Tax & Accounting 114 126 -10% 29.3% 33.8% -450bp
Corporate & Other (includes Reuters News) (101) (79)
Adjusted EBITDA $748 $734 2% 26.8% 26.0% 80bp
==== ====
Underlying Operating Profit (3)
------------------------------
Financial & Risk $295 $241 22% 19.5% 15.5% 400bp
Legal 238 219 9% 29.0% 26.6% 240bp
Tax & Accounting 83 98 -15% 21.3% 26.3% -500bp
Corporate & Other (includes Reuters News) (118) (97)
---- ---
Underlying operating profit $498 $461 8% 17.8% 16.3% 150bp
==== ====
Thomson Reuters Corporation
Reconciliation of Operating Profit to Adjusted EBITDA (2)
(millions of U.S. dollars)
(unaudited)
Three Months
Ended
March 31,
---------
2016 2015(1) Change
---- ------ ------
Operating profit $310 $362 -14%
Adjustments to remove:
Amortization of other
identifiable intangible
assets 128 140
Fair value adjustments 64 (53)
Other operating (gains)
losses, net (4) 12
Underlying operating profit $498 $461 8%
Remove: depreciation and
amortization of computer
software 250 273
Adjusted EBITDA $748 $734 2%
---- ----
Underlying operating profit
margin (3) 17.8% 16.3% 150bp
==== ====
Adjusted EBITDA margin (2) 26.8% 26.0% 80bp
==== ====
Thomson Reuters Corporation
Reconciliation of Earnings from Continuing Operations to Adjusted EBITDA (2)
(millions of U.S. dollars)
(unaudited)
Three Months
Ended
March 31,
---------
2016 2015(1) Change
---- ------ ------
Earnings from continuing
operations $210 $280 -25%
Adjustments to remove:
Tax (benefit) expense (26) 25
Other finance costs
(income) 34 (44)
Net interest expense 93 105
Amortization of other
identifiable intangible
assets 128 140
Amortization of computer
software 169 180
Depreciation 81 93
--- ---
EBITDA $689 $779
Adjustments to remove:
Share of post-tax
earnings in equity
method investments (1) (4)
Other operating (gains)
losses, net (4) 12
Fair value adjustments 64 (53)
Adjusted EBITDA $748 $734 2%
==== ====
Thomson Reuters Corporation
Reconciliation of Underlying Operating Profit (3) to Adjusted EBITDA (2) by Business Segment
(millions of U.S. dollars)
(unaudited)
Three Months Ended Three Months Ended
March 31, 2016 March 31, 2015(1)
-------------- ----------------
Underlying Add: Adjusted Underlying Add: Adjusted
Operating Profit Depreciation EBITDA Operating Profit Depreciation and Amortization of
Computer Software EBITDA
and
Amortization
of Computer
Software
---
Financial & Risk $295 $142 $437 $241 $160 $401
Legal 238 60 298 219 67 286
Tax & Accounting 83 31 114 98 28 126
Corporate & Other (includes Reuters News) (118) 17 (101) (97) 18 (79)
$498 $250 $748 $461 $273 $734
==== ==== ==== ==== ==== ====
Thomson Reuters Corporation
Reconciliation of Changes in Revenues, Adjusted EBITDA (4), Underlying Operating Profit (4) and the Related Margins, and
Adjusted Earnings Per Share (adjusted EPS) (4) Excluding the Effects of Foreign Currency
(millions of U.S. dollars, except for per share amounts, and margins)
(unaudited)
Three Months Ended
March 31, Change
---------
2016 2015(1) Total Foreign Before
Currency Currency
-------- --------
Revenues $2,793 $2,821 -1% -2% 1%
Adjusted EBITDA $748 $734 2% 1% 1%
Adjusted EBITDA margin 26.8% 26.0% 80bp 70bp 10bp
Underlying operating profit $498 $461 8% 2% 6%
Underlying operating profit margin 17.8% 16.3% 150bp 70bp 80bp
Adjusted EPS $0.48 $0.39 23% 2% 21%
----- ----- --- --- ---
Thomson Reuters Corporation
Reconciliation of Earnings Attributable to Common Shareholders to Adjusted Earnings (5)
(millions of U.S. dollars, except for share and per share data)
(unaudited)
Three Months
Ended
March 31,
---------
2016 2015(1)
---- ------
Earnings attributable to common shareholders $262 $305
Adjustments to remove:
Fair value adjustments 64 (53)
Other operating (gains) losses, net (4) 12
Other finance costs (income) 34 (44)
Share of post-tax earnings in equity method investments (1) (4)
Tax on above items (25) 14
Tax items impacting comparability (7) (6)
Amortization of other identifiable intangible assets 128 140
Earnings from discontinued operations, net of tax (62) (40)
Interim period effective tax rate normalization (6) (5) 1
Tax charge amortization (7) (16) (16)
Dividends declared on preference shares (1) (1)
--- ---
Adjusted earnings $367 $308
==== ====
Adjusted earnings per share $0.48 $0.39
Diluted weighted-average common shares (millions) 762.2 797.6
===== =====
Thomson Reuters Corporation
Reconciliation of Net Cash Provided by Operating Activities to Free
Cash Flow (8)
(millions of U.S. dollars)
(unaudited)
Three Months
Ended
March 31,
---------
2016 2015(1)
---- ------
Net cash provided by operating
activities $458 $244
Capital expenditures, less
proceeds from disposals (233) (290)
Other investing activities 19 2
Dividends paid on preference
shares (1) (1)
Dividends paid to non-
controlling interests (9) (7)
Capital expenditures from
discontinued operations (11) (13)
--- ---
Free cash flow $223 ($65)
==== ====
Footnotes
---------
(1) Prior-year period amounts have been
restated to reflect the
reclassification of the Intellectual
Property & Science segment as a
discontinued operation.
(2) Thomson Reuters defines adjusted
EBITDA as underlying operating profit
excluding the related depreciation
and amortization of computer
software. Adjusted EBITDA margin is
adjusted EBITDA expressed as a
percentage of revenues.
(3) Underlying operating profit is
operating profit from reportable
segments and Corporate & Other
(includes Reuters News). Underlying
operating profit margin is the
underlying operating profit expressed
as a percentage of revenues.
(4) The changes in revenues, adjusted
EBITDA and underlying operating
profit and the related margins, and
adjusted earnings per share before
currency (at constant currency or
excluding the effects of currency)
are determined by converting the
current and prior-year period's
local currency equivalent using the
same exchange rates.
(5) Adjusted earnings and adjusted
earnings per share include dividends
declared on preference shares and
amortization of the 2013 tax charges
associated with the consolidation of
technology and content assets 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, other finance (income)
costs, Thomson Reuters share of post-
tax (earnings) losses in equity
method investments, discontinued
operations and other items affecting
comparability. Adjusted earnings per
share is calculated using diluted
weighted-average shares and does not
represent actual earnings or loss per
share attributable to shareholders.
(6) Adjustment to reflect income taxes
based on estimated full-year
effective tax rate. Reported earnings
or loss 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.
(7) Reflects amortization of the 2013 tax
charges associated with the
consolidation of the ownership and
management of technology and content
assets. For the non-IFRS measure,
the majority of the charges are
amortized over seven years, the
period over which the tax is expected
to be paid.
(8) Free cash flow (includes free cash
flow from continuing and discontinued
operations) is net cash provided by
operating activities, and other
investing activities less capital
expenditures, dividends paid on the
company's preference shares, and
dividends paid to non-controlling
interests.
Thomson Reuters Corporation
Consolidated Income Statement
(millions of U.S. dollars, except per share data)
(unaudited)
Three Months Ended
March 31,
---------
2016 2015(1)
---- ------
CONTINUING OPERATIONS
Revenues $2,793 $2,821
Operating
expenses (2,109) (2,034)
Depreciation (81) (93)
Amortization
of
computer
software (169) (180)
Amortization
of
other
identifiable
intangible
assets (128) (140)
Other
operating
gains
(losses),
net 4 (12)
Operating
profit 310 362
Finance costs, net:
Net
interest
expense (93) (105)
Other
finance
(costs)
income (34) 44
Income
before
tax
and
equity
method
investments 183 301
Share
of
post-
tax
earnings
in
equity
method
investments 1 4
Tax
benefit
(expense) 26 (25)
--- ---
Earnings
from
continuing
operations 210 280
Earnings
from
discontinued
operations,
net
of
tax 62 40
--- ---
Net
earnings $272 $320
==== ====
Earnings attributable to:
Common
shareholders 262 305
Non-
controlling
interests 10 15
Earnings per share:
Basic and diluted earnings per share:
From
continuing
operations $0.26 $0.33
From
discontinued
operations 0.08 0.05
---- ----
Basic
and
diluted
earnings
per
share $0.34 $0.38
===== =====
Basic
weighted-
average
common
shares 760,727,773 794,193,780
=========== ===========
Diluted
weighted-
average
common
shares 762,216,127 797,566,149
=========== ===========
(1) Prior-year period amounts have been restated to reflect the
reclassification of the Intellectual
Property & Science business as a discontinued operation.
Thomson Reuters Corporation
Consolidated Statement of Financial Position
(millions of U.S. dollars)
(unaudited)
March 31, December 31,
2016 2015
---- ----
Assets
Cash and
cash
equivalents $869 $926
Trade
and
other
receivables 1,468 1,755
Other
financial
assets 110 176
Prepaid
expenses
and
other
current
assets 671 683
--- ---
Current
assets
excluding
assets
held
for
sale 3,118 3,540
Assets
held
for
sale 1,723 -
Current
assets 4,841 3,540
Computer
hardware
and
other
property,
net 1,019 1,067
Computer
software,
net 1,391 1,486
Other
identifiable
intangible
assets,
net 6,140 6,417
Goodwill 14,957 15,878
Other
financial
assets 101 116
Other
non-
current
assets 552 544
Deferred
tax 47 47
--- ---
Total
assets $29,048 $29,095
======= =======
Liabilities and equity
Liabilities
Current
indebtedness $2,543 $1,555
Payables,
accruals
and
provisions 1,908 2,278
Deferred
revenue 997 1,319
Other
financial
liabilities 166 238
--- ---
Current
liabilities
excluding
liabilities
associated
with
assets
held
for
sale 5,614 5,390
Liabilities
associated
with
assets
held
for
sale 607 -
Current
liabilities 6,221 5,390
Long-
term
indebtedness 6,379 6,829
Provisions
and
other
non-
current
liabilities 2,196 2,124
Other
financial
liabilities 318 387
Deferred
tax 1,098 1,265
----- -----
Total
liabilities 16,212 15,995
Equity
Capital 9,772 9,852
Retained
earnings 6,168 6,458
Accumulated
other
comprehensive
loss (3,594) (3,697)
------ ------
Total
shareholders'
equity 12,346 12,613
Non-
controlling
interests 490 487
--- ---
Total
equity 12,836 13,100
------ ------
Total
liabilities
and
equity $29,048 $29,095
======= =======
Thomson Reuters Corporation
Consolidated Statement of Cash Flow
(millions of U.S. dollars)
(unaudited)
Three Months
Ended
March 31,
---------
2016 2015(1)
---- ------
Cash provided by (used in):
Operating activities
Earnings from continuing operations $210 $280
Adjustments for:
Depreciation 81 93
Amortization of computer software 169 180
Amortization of other identifiable
intangible assets 128 140
Net gains on disposals of
businesses and investments (1) -
Deferred tax (58) (25)
Other 178 (19)
Changes in working capital and
other items (371) (525)
---- ----
Operating cash flows from
continuing operations 336 124
Operating cash flows from
discontinued operations 122 120
--- ---
Net cash provided by operating
activities 458 244
--- ---
Investing activities
Acquisitions, net of cash acquired (46) (8)
Proceeds from disposals of
businesses and investments, net of
taxes paid 2 -
Capital expenditures, less proceeds
from disposals (233) (290)
Other investing activities 19 2
--- ---
Investing cash flows from
continuing operations (258) (296)
Investing cash flows from
discontinued operations (11) (13)
--- ---
Net cash used in investing
activities (269) (309)
---- ----
Financing activities
Repayments of debt (3) -
Net borrowings under short-term
loan facilities 442 400
Repurchases of common shares (432) (348)
Dividends paid on preference shares (1) (1)
Dividends paid on common shares (249) (258)
Dividends paid to non-controlling
interests (9) (7)
Other financing activities 4 41
--- ---
Net cash used in financing
activities (248) (173)
---- ----
Decrease in cash and bank
overdrafts (59) (238)
Translation adjustments 4 (12)
Cash and bank overdrafts at
beginning of period 922 1,015
--- -----
Cash and bank overdrafts at end of
period $867 $765
==== ====
Cash and bank overdrafts at end of period comprised
of:
Cash and cash equivalents $869 $769
Bank overdrafts (2) (4)
--- ---
$867 $765
==== ====
(1) Prior-year period amounts have been restated to reflect the
reclassification of the Intellectual
Property & Science business as a discontinued operation.
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SOURCE Thomson Reuters
