TORONTO, Nov. 1, 2023
/PRNewswire/ -- Thomson Reuters (TSX/NYSE: TRI) today reported
results for the third quarter ended September 30, 2023:
- Solid revenue momentum continued in the third quarter
- Total company revenue up 1% / organic revenue up 6%
- Organic revenue up 7% for the "Big 3" segments (Legal
Professionals, Corporates and Tax & Accounting
Professionals)
- Maintained full-year 2023 outlook for organic revenue, adjusted
EBITDA margin and free cash flow
- Depreciation and amortization, and interest expense outlook
updated
- Sold 15.0 million shares of the London Stock Exchange Group
(LSEG) in the third quarter for gross proceeds of $1.5 billion
- Announcement of new $1.0 billion
share repurchase program
"Solid momentum across our business continued in the third
quarter, despite an uncertain macro environment," said Steve Hasker, president and CEO of Thomson
Reuters. "Importantly, our confidence around the generative AI
opportunity continues to strengthen. We made good progress against
our 'build, partner, buy' approach in the quarter, advancing our
product roadmaps, pursuing strategic partnerships and completing
our acquisition of Casetext. Customers view this progress as a
clear sign of our intent, and ability to lead in generative AI, and
we are excited to continue unlocking its full potential for their
benefit."
Consolidated Financial Highlights - Three Months Ended
September 30
Three Months Ended
September 30,
(Millions of U.S.
dollars, except for adjusted EBITDA margin and EPS)
(unaudited)
|
IFRS Financial
Measures(1)
|
2023
|
2022
|
Change
|
Change at
Constant
Currency
|
Revenues
|
$1,594
|
$1,574
|
1 %
|
|
Operating
profit
|
$441
|
$398
|
11 %
|
|
Diluted earnings per
share (EPS)
|
$0.80
|
$0.47
|
70 %
|
|
Net cash provided by
operating activities
|
$674
|
$531
|
27 %
|
|
Non-IFRS Financial
Measures(1)
|
|
|
|
|
Revenues
|
$1,594
|
$1,574
|
1 %
|
1 %
|
Adjusted
EBITDA
|
$632
|
$535
|
18 %
|
17 %
|
Adjusted EBITDA
margin
|
39.6 %
|
34.0 %
|
560bp
|
550bp
|
Adjusted EPS
|
$0.82
|
$0.58(2)
|
41 %
|
41 %
|
Free cash
flow
|
$529
|
$386
|
37 %
|
|
(1) In addition to
results reported in accordance with International Financial
Reporting Standards (IFRS), the company uses certain non-IFRS
financial measures as supplemental indicators of its operating
performance and financial position. See the "Non-IFRS Financial
Measures" section and the tables appended to this news release for
additional information on these and other non-IFRS financial
measures, including how they are defined and reconciled to the most
directly comparable IFRS measures.
(2) As of September 30,
2023, we amended our definition of adjusted earnings to exclude
amortization from acquired computer software. The comparative 2022
period has been revised to reflect the current period presentation.
For additional information, see the "Non-IFRS Financial Measures"
section of this news release.
|
Revenues increased 1%, driven by growth in recurring
revenues. Net divestitures had a 5% negative impact on revenues and
foreign currency had no impact.
- Organic revenues increased 6%, driven by 7% growth in recurring
revenues (83% of total revenues) as well as 9% growth in
transactions revenues. Global Print revenues decreased 4%
organically.
- The company's "Big 3" segments reported organic revenue growth
of 7% and collectively comprised 80% of total revenues.
Operating profit increased 11% driven by higher revenues
and lower costs.
- Adjusted EBITDA, increased 18% due to higher revenues
and lower costs. The related margin increased to 39.6% from 34.0%
in the prior-year period. Lower costs reflected Change Program
investments made in the prior-year period, which benefited the
year-over-year change in adjusted EBITDA margin by 290bp, as well
as the timing of expenses, which are largely expected to normalize
in the fourth quarter. Foreign currency contributed 10bp to the
change.
Diluted EPS was $0.80
compared to $0.47 in the prior-year
period primarily due to higher operating profit and lower income
tax expense. While both periods included reductions in the value of
the company's investment in LSEG, net of gains on related foreign
exchange contracts, the three-month period ended September 30, 2023, benefited from a lower net
reduction in the value of the investment.
- Adjusted EPS, which excludes the changes in value of the
company's LSEG investment and the related foreign exchange
contracts, as well as other adjustments, increased to $0.82 per share from $0.58 per share in the prior-year period,
primarily due to higher adjusted EBITDA. Adjusted EPS also
benefited from a reduction in weighted-average common shares
outstanding due to share repurchases and our June 2023 return of capital transaction.
Net cash provided by operating activities increased
$143 million primarily due to the
cash benefits from higher revenues and lower costs, as well as
lower tax payments, and favorable movements in working capital.
- Free cash flow increased $143
million due to the same factors as net cash provided by
operating activities. The prior-year period included investments in
the Change Program.
Highlights by Customer Segment - Three Months Ended
September 30
(Millions of U.S.
dollars, except for adjusted EBITDA margins)
(unaudited)
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
Change
|
|
|
2023
|
2022
|
|
Total
|
Constant
Currency(1)
|
Organic(1)(2)
|
Revenues
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$688
|
$701
|
|
-2 %
|
-2 %
|
6 %
|
Corporates
|
|
391
|
373
|
|
5 %
|
4 %
|
7 %
|
Tax &
Accounting Professionals
|
|
203
|
190
|
|
7 %
|
8 %
|
12 %
|
"Big 3" Segments
Combined(1)
|
|
1,282
|
1,264
|
|
1 %
|
1 %
|
7 %
|
Reuters
News
|
|
180
|
171
|
|
6 %
|
5 %
|
3 %
|
Global
Print
|
|
137
|
146
|
|
-6 %
|
-5 %
|
-4 %
|
Eliminations/Rounding
|
|
(5)
|
(7)
|
|
|
|
|
Revenues
|
|
$1,594
|
$1,574
|
|
1 %
|
1 %
|
6 %
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$338
|
$324
|
|
4 %
|
3 %
|
|
Corporates
|
|
164
|
147
|
|
12 %
|
11 %
|
|
Tax &
Accounting Professionals
|
|
64
|
59
|
|
8 %
|
10 %
|
|
"Big 3" Segments
Combined(1)
|
|
566
|
530
|
|
7 %
|
6 %
|
|
Reuters
News
|
|
37
|
33
|
|
10 %
|
6 %
|
|
Global
Print
|
|
55
|
50
|
|
9 %
|
8 %
|
|
Corporate
costs
|
|
(26)
|
(78)
|
|
n/a
|
n/a
|
|
Adjusted
EBITDA
|
|
$632
|
$535
|
|
18 %
|
17 %
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
49.1 %
|
46.2 %
|
|
290bp
|
260bp
|
|
Corporates
|
|
41.9 %
|
39.2 %
|
|
270bp
|
280bp
|
|
Tax &
Accounting Professionals
|
|
31.2 %
|
31.0 %
|
|
20bp
|
50bp
|
|
"Big 3" Segments
Combined(1)
|
|
44.0 %
|
41.9 %
|
|
210bp
|
210bp
|
|
Reuters
News
|
|
20.4 %
|
19.7 %
|
|
70bp
|
30bp
|
|
Global
Print
|
|
39.6 %
|
34.4 %
|
|
520bp
|
480bp
|
|
Adjusted EBITDA
margin
|
|
39.6 %
|
34.0 %
|
|
560bp
|
550bp
|
|
|
|
|
|
|
|
|
|
(1) See the
"Non-IFRS Financial Measures" section and the tables appended to
this news release for additional information on these and other
non-IFRS financial measures. To compute segment and
consolidated adjusted EBITDA margin, the Company excludes fair
value adjustments related to acquired deferred
revenues.
(2) Computed
for revenue growth only.
n/a: not
applicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unless otherwise noted, all revenue growth comparisons by
customer segment in this news release are at constant
currency (or exclude the impact of foreign currency) as
Thomson Reuters believes this provides the best basis to measure
their performance.
Legal Professionals
Revenues decreased 2% to $688
million due to the negative impact from net
divestitures. Organic revenues increased 6%.
- Recurring revenues were essentially unchanged (96% of total, 6%
organic growth). Organic growth was primarily driven by Westlaw,
Practical Law, HighQ, and the Elite divestiture.
- Transactions revenues declined 37% (4% of total, 12% organic
growth). Organic growth was primarily due to the Government
business.
Adjusted EBITDA increased 4% to $338 million.
- The margin increased to 49.1% from 46.2% as lower expenses more
than offset lower revenues.
Corporates
Revenues increased 4% to $391
million, including a negative impact from net divestitures.
Organic revenues increased 7%.
- Recurring revenues grew 5% (89% of total, 8% organic) primarily
driven by strong growth in Practical Law, HighQ, CLEAR and our
Latin America business.
- Transactions revenues decreased 4% (11% of total, decreased 2%
organic).
Adjusted EBITDA increased 12% to $164 million.
- The margin increased to 41.9% from 39.2%, primarily driven by
higher revenues.
Tax & Accounting Professionals
Revenues increased 8% to $203
million, including a negative impact from net divestitures.
Organic revenues increased 12%.
- Recurring revenues increased 2% (79% of total, 9% organic).
Organic growth was driven by the segment's Latin America business.
- Transactions revenues increased 39% (21% of total, 20% organic)
primarily due to Confirmation and SurePrep.
Adjusted EBITDA increased 8% to $64 million.
- The margin increased to 31.2% from 31.0%, driven by higher
revenues and the timing of expenses.
The Tax & Accounting Professionals segment is the company's
most seasonal business with approximately 60% of full-year revenues
typically generated in the first and fourth quarters. As a result,
the margin performance of this segment has been generally higher in
the first and fourth quarters as costs are typically incurred in a
more linear fashion throughout the year.
Reuters News
Revenues of $180
million increased 5% (3% organic) driven by a contractual
price increase from our news agreement with the Data &
Analytics business of LSEG, and growth in our transactional events
and digital advertising revenues.
Adjusted EBITDA increased 10% to $37 million, primarily due to higher
revenues.
Global Print
Revenues decreased 5% (decreased 4% organic) to
$137 million, in line with our
expectations.
Adjusted EBITDA increased 9% to $55
million.
- The margin increased to 39.6% from 34.4%, driven by lower
expenses due to timing related to editorial and other labor costs.
We expect the timing to largely normalize in Q4.
Corporate Costs
Corporate costs at the adjusted EBITDA level were
$26 million. Corporate costs were
$78 million in the prior-year period
and included $47 million of Change
Program costs.
Consolidated Financial Highlights - Nine Months Ended
September 30
Nine Months Ended
September 30,
(Millions of U.S.
dollars, except for adjusted EBITDA margin and EPS)
(unaudited)
|
IFRS Financial
Measures(1)
|
2023
|
2022
|
Change
|
Change at
Constant
Currency
|
Revenues
|
$4,979
|
$4,862
|
2 %
|
|
Operating
profit
|
$1,774
|
$1,203
|
47 %
|
|
Diluted EPS
|
$4.31
|
$2.30
|
87 %
|
|
Net cash provided by
operating activities
|
$1,636
|
$1,239
|
32 %
|
|
Non-IFRS Financial
Measures(1)
|
|
|
|
|
Revenues
|
$4,979
|
$4,862
|
2 %
|
3 %
|
Adjusted
EBITDA
|
$1,971
|
$1,696
|
16 %
|
16 %
|
Adjusted EBITDA
margin
|
39.5 %
|
34.9 %
|
460bp
|
430bp
|
Adjusted EPS
|
$2.53
|
$1.87(2)
|
35 %
|
35 %
|
Free cash
flow
|
$1,258
|
$814
|
55 %
|
|
(1) In
addition to results reported in accordance with IFRS, the company
uses certain non-IFRS financial measures as supplemental indicators
of its operating performance and financial position. See the
"Non-IFRS Financial Measures" section and the tables appended to
this news release for additional information on these and other
non-IFRS financial measures, including how they are defined and
reconciled to the most directly comparable IFRS
measures.
(2) As of
September 30, 2023, we amended our definition of adjusted earnings
to exclude amortization from acquired computer software. The
comparative 2022 period has been revised to reflect the current
period presentation. For additional information, see the "Non-IFRS
Financial Measures" section of this news release.
|
Revenues increased 2%, driven by recurring and
transactions revenues. Net divestitures had a 3% negative impact on
revenues and foreign currency had 1% negative impact.
- Organic revenues increased 6%, driven by 6% growth in recurring
revenues (80% of total revenues) as well as 9% growth in
transactions revenues. Global Print revenues decreased 3%
organically.
- The company's "Big 3" segments reported organic revenue growth
of 7% and collectively comprised 81% of total revenues.
Operating profit increased 47% primarily due to the gain
on the sale of a majority stake in the company's Elite business.
Higher revenues and lower costs also contributed to operating
profit growth.
- Adjusted EBITDA, which excludes the gain on sale of
Elite, as well as other adjustments, increased 16% due to higher
revenues and lower costs. The related margin increased to 39.5%
from 34.9% in the prior-year period. Lower costs reflected Change
Program investments made in the prior-year period, which benefited
the year-over-year change in adjusted EBITDA margin by 220bp.
Foreign currency contributed 30bp to the year-over-year change in
the adjusted EBITDA margin.
Diluted EPS was $4.31
per share compared to $2.30 per share
in the prior-year period, primarily due to higher operating profit
and an increase in the value of the company's investment in LSEG,
net of changes in the value of related foreign exchange
contracts.
- Adjusted EPS, which excludes the gain on the sale of a
majority stake in the company's Elite business, changes in value of
the company's LSEG investment, as well as other adjustments,
increased to $2.53 per share from
$1.87 per share in the prior-year
period, primarily due to higher adjusted EBITDA. Adjusted EPS also
benefited from a reduction in weighted-average common shares
outstanding due to share repurchases and our June 2023 return of capital transaction.
Net cash provided by operating activities increased
$397 million due to cash benefits
from higher revenues and lower costs, lower tax payments, and
favorable movements in working capital.
- Free cash flow increased $444
million due to higher cash flows from operating activities
as well as lower capital expenditures. The prior-year period
included investments in the Change Program.
Highlights by Customer Segment - Nine Months Ended
September 30
(Millions of U.S.
dollars, except for adjusted EBITDA margins)
(unaudited)
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
Change
|
|
|
2023
|
2022
|
|
Total
|
Constant
Currency(1)
|
Organic(1)(2)
|
Revenues
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$2,107
|
$2,099
|
|
0 %
|
1 %
|
6 %
|
Corporates
|
|
1,218
|
1,157
|
|
5 %
|
5 %
|
7 %
|
Tax &
Accounting Professionals
|
|
714
|
660
|
|
8 %
|
9 %
|
11 %
|
"Big 3" Segments
Combined(1)
|
|
4,039
|
3,916
|
|
3 %
|
4 %
|
7 %
|
Reuters
News
|
|
549
|
535
|
|
3 %
|
2 %
|
2 %
|
Global
Print
|
|
408
|
430
|
|
-5 %
|
-4 %
|
-3 %
|
Eliminations/Rounding
|
|
(17)
|
(19)
|
|
|
|
|
Revenues
|
|
$4,979
|
$4,862
|
|
2 %
|
3 %
|
6 %
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$1,001
|
$933
|
|
7 %
|
7 %
|
|
Corporates
|
|
481
|
443
|
|
9 %
|
9 %
|
|
Tax &
Accounting Professionals
|
|
302
|
262
|
|
15 %
|
16 %
|
|
"Big 3" Segments
Combined(1)
|
|
1,784
|
1,638
|
|
9 %
|
9 %
|
|
Reuters
News
|
|
111
|
114
|
|
-3 %
|
-10 %
|
|
Global
Print
|
|
158
|
153
|
|
3 %
|
3 %
|
|
Corporate
costs
|
|
(82)
|
(209)
|
|
n/a
|
n/a
|
|
Adjusted
EBITDA
|
|
$1,971
|
$1,696
|
|
16 %
|
16 %
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
47.5 %
|
44.5 %
|
|
300bp
|
280bp
|
|
Corporates
|
|
39.4 %
|
38.2 %
|
|
120bp
|
110bp
|
|
Tax &
Accounting Professionals
|
|
41.6 %
|
39.7 %
|
|
190bp
|
180bp
|
|
"Big 3" Segments
Combined(1)
|
|
44.0 %
|
41.8 %
|
|
220bp
|
200bp
|
|
Reuters
News
|
|
20.1 %
|
21.4 %
|
|
-130bp
|
-280bp
|
|
Global
Print
|
|
38.6 %
|
35.6 %
|
|
300bp
|
280bp
|
|
Adjusted EBITDA
margin
|
|
39.5 %
|
34.9 %
|
|
460bp
|
430bp
|
|
|
|
|
|
|
|
|
|
(1) See the
"Non-IFRS Financial Measures" section and the tables appended to
this news release for additional information on these and other
non-IFRS financial measures. To compute segment and consolidated
adjusted EBITDA margin, the Company excludes fair value
adjustments related to acquired deferred revenues.
(2) Computed
for revenue growth only.
n/a: not
applicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 Outlook
The company is maintaining its 2023 outlook except for updates
to depreciation and amortization, and interest expense as
follows:
In the third quarter of 2023, we amended our definition of
adjusted earnings to exclude amortization from acquired computer
software. As part of this transition, our guidance includes
new details about the components of amortization expense. Refer to
the non-IFRS financial measures section and the tables appended to
this news release for additional information.
- Depreciation and amortization has been updated to incorporate
the recent acquisitions and to narrow the range with one quarter
left in the year. Depreciation and amortization is also broken down
into two line items to support the new non-IFRS adjusted earnings
presentation. Amortization of acquired software, which is now
excluded from our non-IFRS adjusted earnings, rises due to recent
acquisition activity. Our full-year adjusted depreciation and
amortization guidance for the full year is now $625 million to $635
million, with $555 million to
$560 million related to internally
developed software and $70 million to
$75 million for amortization of
acquired software.
- Interest expense is expected to be $170
million to $180 million, which
is lower than our previous guidance of $190
million. We continue to benefit from our accelerated pace of
LSEG monetization and higher interest rates on our cash
balances.
The table below sets forth the company's updated outlook, which
assumes constant currency rates and excludes the impact of any
future acquisitions or dispositions that may occur during the year.
Thomson Reuters believes that this type of guidance provides useful
insight into the anticipated performance of its businesses.
The company expects its fourth-quarter 2023 organic revenue
growth to be within the full-year 5.5% - 6.0% range and its
adjusted EBITDA margin to be approximately 37%, reflecting growth
investments, productivity initiatives and dilution from recent
acquisitions.
While the company's performance during the nine months of 2023
provides it with increasing confidence about its outlook, the
macroeconomic backdrop remains uncertain with many signs that point
to a weakening global economic environment, amid rising interest
rates, high inflation, and ongoing geopolitical risks. Any
worsening of the global economic or business environment could
impact the company's ability to achieve its outlook.
Reported Full-Year 2022 and Updated Full-Year 2023
Outlook
Total Thomson
Reuters
|
FY
2022
Reported
|
FY
2023
Outlook
2/9/23
|
FY
2023
Outlook
5/2/23
|
FY
2023
Outlook
8/2/23
|
FY
2023
Outlook
11/1/23
|
Total Revenue
Growth
|
4 %
|
4.5% - 5.0%
|
3.0% - 3.5%
|
Unchanged
|
Unchanged
|
Organic Revenue
Growth(1)
|
6 %
|
5.5% - 6.0%
|
Unchanged
|
Unchanged
|
Unchanged
|
Adjusted EBITDA
Margin(1)
|
35.1 %
|
~ 39%
|
Unchanged
|
Unchanged
|
Unchanged
|
Corporate
Costs
Core Corporate Costs
Change Program
OpEx
|
$293 million
$122 million
$171 million
|
$110 - $120
million
$110 - $120
million
n/a
|
Unchanged
|
Unchanged
|
Unchanged
|
Free Cash
Flow(1)
|
$1.3 billion
|
~$1.8
billion
|
Unchanged
|
Unchanged
|
Unchanged
|
Accrued Capex as % of
Revenue(1)
Real Estate Optimization
Spend(2)
|
8.2%
n/a
|
~ 7%
$30 million
|
Unchanged
|
~ 8%
n/a
|
Unchanged
n/a
|
Depreciation &
Amortization
Depreciation & Amortization of Internally
Developed Software
Amortization of Acquired
Software
|
$625 million
$586 million
$39 million
|
$595 - $625
million
$545 - $565
million
$50 - $60
million
|
Unchanged
|
Unchanged
|
$625 - $635
million
$555 - $560
million
$70 - $75
million
|
Interest Expense
(P&L)(3)
|
$196 million
|
$190 - $210
million
|
Unchanged
|
~$190
million
|
$170 - $180
million
|
Effective Tax Rate on
Adjusted Earnings(1)
|
17.7 %
|
~ 18%
|
Unchanged
|
~17%
|
Unchanged
|
"Big 3"
Segments(1)
|
FY
2022
Reported
|
FY
2023
Outlook
2/9/23
|
FY
2023
Outlook
5/2/23
|
FY
2023
Outlook
8/2/23
|
FY
2023
Outlook
11/1/23
|
Total Revenue Growth
|
5 %
|
5.5% - 6.0%
|
3.5% - 4.0%
|
Unchanged
|
Unchanged
|
Organic Revenue
Growth
|
7 %
|
6.5% - 7.0%
|
Unchanged
|
Unchanged
|
Unchanged
|
Adjusted EBITDA
Margin
|
42.4 %
|
~ 44%
|
Unchanged
|
Unchanged
|
Unchanged
|
|
|
(1)
|
Non-IFRS financial
measures. See the "Non-IFRS Financial Measures" section below as
well as the tables and footnotes appended to this news release for
more information.
|
(2)
|
Real estate
optimization spend in 2023 was incremental to the Accrued Capex as
a percent of revenue outlook, as presented on February 9 and May 2
of 2023.
|
(3)
|
Interest expense
guidance excludes a $12 million benefit from the release of a tax
reserve that is removed from adjusted earnings.
|
The information in this section is forward-looking. Actual
results, which will include the impact of currency and future
acquisitions and dispositions completed during 2023, may differ
materially from the company's outlook. The information in this
section should also be read in conjunction with the section below
entitled "Special Note Regarding Forward-Looking Statements,
Material Risks and Material Assumptions."
Acquisitions
In August 2023, the company
acquired Casetext for $650 million.
Casetext uses artificial intelligence and machine learning, which
enable legal professionals to work more efficiently.
In July 2023, the company acquired
Imagen Ltd, a media asset management company, which will be part of
the Reuters News segment.
Today, the company acquired full ownership of the Westlaw Japan
business, previously a joint venture with Shinnippon-Hoki
Publishing Co., Ltd. Westlaw Japan is now part of Thomson Reuters
Japan.
Dividends
In February 2023, the company
announced a 10% or $0.18 per share
annualized increase in the dividend to $1.96 per common share, representing the 30th
consecutive year of dividend increases. A quarterly dividend of
$0.49 per share is payable on
December 15, 2023 to common
shareholders of record as of November 16,
2023.
As of the close of business on October
30, 2023, Thomson Reuters had 455,491,082 common shares
outstanding.
Normal Course Issuer Bid and $1.0
Billion Share Repurchase Program
Thomson Reuters also announced today that it has received
approval from the Toronto Stock Exchange (TSX) for the renewal of
its normal course issuer bid (NCIB). The company also announced
that it plans to repurchase up to $1.0
billion of its shares under the new NCIB.
Under the new NCIB, up to 10 million common shares (which
represents approximately 2.19% of the company's issued and
outstanding common shares as of October 30,
2023) may be repurchased between November 3, 2023 and November 2, 2024.
Under the renewed NCIB, shares may be repurchased in open market
transactions on the TSX, the New York Stock Exchange (NYSE) and/or
other exchanges and alternative trading systems, if eligible, or by
such other means as may be permitted by the TSX and/or NYSE or
under applicable law, including private agreement purchases or
share purchase program agreement purchases if Thomson Reuters
receives, if applicable, an issuer bid exemption order in the
future from applicable securities regulatory authorities in
Canada for such purchases. The
price that Thomson Reuters will pay for common shares in open
market transactions will be the market price at the time of
purchase or such other price as may be permitted by the TSX.
Any private agreement purchases made under an exemption order, if
applicable, may be at a discount to the prevailing market price. In
accordance with TSX rules, any daily repurchases (other than
pursuant to a block purchase exception) on the TSX under the
renewed NCIB are limited to a maximum of 81,240 shares, which
represents 25% of the average daily trading volume on the TSX of
324,961 for the six months ended September
30, 2023 (net of repurchases made by the company during that
time period). Any shares that are repurchased are cancelled.
From time to time when Thomson Reuters does not possess material
nonpublic information about itself or its securities, it may enter
into a pre-defined plan with its broker to allow for the repurchase
of shares at times when Thomson Reuters ordinarily would not be
active in the market due to its own internal trading blackout
periods, insider trading rules or otherwise. Any such plans entered
into with Thomson Reuters' broker will be adopted in accordance
with applicable Canadian securities laws and the requirements of
Rule 10b5-1 under the U.S. Securities Exchange Act of 1934, as
amended.
Thomson Reuters has historically maintained a disciplined
capital strategy that balances growth, long-term financial
leverage, credit ratings and returns to shareholders through
dividends and share repurchases. The NCIB provides the company with
a flexible way to provide returns to shareholders who choose to
participate by selling their shares.
Decisions regarding any future repurchases will depend on
certain factors, such as market conditions, share price and other
opportunities to invest capital for growth. Thomson Reuters may
elect to suspend or discontinue share repurchases at any time, in
accordance with applicable laws.
For its NCIB that began on June 13,
2022 and expired on June 12,
2023, Thomson Reuters previously received approval from the
TSX to repurchase up to 24 million common shares. Of this amount,
Thomson Reuters repurchased 17,851,024 common shares for a total
cost of approximately $2 billion,
representing an average price of $112.04 per share. Thomson Reuters repurchased
the common shares through the facilities of the TSX, the NYSE and
other alternative trading systems through its broker.
LSEG Ownership Interest
Thomson Reuters indirectly owns LSEG shares through an entity
that it jointly owns with Blackstone's consortium and a group of
current LSEG and former Refinitiv senior management. During
the third quarter of 2023, the company sold 15.0 million shares
that it indirectly owned for $1.5
billion of gross proceeds.
As of October 30, 2023, Thomson
Reuters indirectly owned approximately 16.9 million LSEG shares,
which had a market value of approximately $1.7 billion based on LSEG's closing share price
on that day. In connection with the September 2023 LSEG share sale, the company
entered into call options to sell approximately 3.5 million LSEG
shares with maturity dates in 2023 and 2024 in the event that the
LSEG share price exceeds specified levels.
Thomson Reuters
Thomson Reuters (NYSE / TSX: TRI) informs the way forward
by bringing together the trusted content and technology that people
and organizations need to make the right decisions. The company
serves professionals across legal, tax, accounting, compliance,
government, and media. Its products combine highly specialized
software and insights to empower professionals with the data,
intelligence, and solutions needed to make informed decisions, and
to help institutions in their pursuit of justice, truth and
transparency. Reuters, part of Thomson Reuters, is a world leading
provider of trusted journalism and news. For more information,
visit tr.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, which include ratios that incorporate one or more
non-IFRS financial measures, such as adjusted EBITDA (other than at
the customer segment level) and the related margin, free cash flow,
adjusted earnings and the effective tax rate on adjusted earnings,
adjusted EPS, accrued capital expenditures expressed as a
percentage of revenues, selected measures excluding the impact of
foreign currency, changes in revenues computed on an organic basis
as well as all financial measures for the "Big 3" segments.
As of September 30, 2023,
Thomson Reuters amended its definition of adjusted earnings to
exclude amortization from acquired computer software. While
the company has always excluded amortization from acquired
identifiable intangible assets other than computer software from
its definition of adjusted earnings, this change aligns its
treatment of amortization for all acquired intangible assets. Prior
period amounts were revised for comparability.
Thomson Reuters uses these non-IFRS financial measures
as supplemental indicators of its operating performance and
financial position as well as for internal planning purposes and
the company's business outlook. Additionally, Thomson Reuters uses
non-IFRS measures as the basis for management incentive programs.
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.
The company's outlook contains various non-IFRS financial
measures. The company believes that providing reconciliations of
forward-looking non-IFRS financial measures in its outlook would be
potentially misleading and not practical due to the difficulty of
projecting items that are not reflective of ongoing operations in
any future period. The magnitude of these items may be significant.
Consequently, for outlook purposes only, the company is unable to
reconcile these non-IFRS measures to the most directly comparable
IFRS measures because it cannot predict, with reasonable certainty,
the impacts of changes in foreign exchange rates which impact (i)
the translation of its results reported at average foreign currency
rates for the year, and (ii) other finance income or expense
related to intercompany financing arrangements and foreign exchange
contracts. Additionally, the company cannot reasonably predict
(i) its share of post-tax earnings or losses in equity
method investments, which is subject to changes in the stock
price of LSEG or (ii) the occurrence or amount of other operating
gains and losses that generally arise from business transactions
that the company does not currently anticipate.
ROUNDING
Other than EPS, the company reports its results in millions
of U.S. dollars, but computes percentage changes and margins using
whole dollars to be more precise. As a result, percentages and
margins calculated from reported amounts may differ from those
presented, and growth components may not total due to
rounding.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL
RISKS AND MATERIAL ASSUMPTIONS
Certain statements in this news release, including, but not
limited to, statements in Mr. Hasker's comments, the "2023 Outlook"
section and the company's expectations regarding timing of
expenses, impacting adjusted EBITDA and statements regarding the
company's plan to repurchase up to $1.0
billion of its common shares and its intention related to
future repurchases, are forward-looking. The words
"will", "expect", "believe", "target", "estimate", "could",
"should", "intend", "predict", "project" and similar expressions
identify forward-looking statements. While the company believes
that it has a reasonable basis for making forward-looking
statements in this news release, they are not a guarantee of future
performance or outcomes and there is no assurance that any of the
other events described in any forward-looking statement will
materialize. Forward-looking statements are subject to a number of
risks, uncertainties and assumptions that could cause actual
results or events to differ materially from current expectations.
Many of these risks, uncertainties and assumptions are beyond the
company's control and the effects of them can be difficult to
predict.
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, those discussed on pages 19-33 in the "Risk
Factors" section of the company's 2022 annual report. These and
other risk 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 (SEC). Thomson Reuters annual and quarterly
reports are also available in the "Investor Relations" section
of tr.com.
The company's business outlook is based on information
currently available to the company and is based on various external
and internal assumptions made by the company in light of its
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors that the
company believes are appropriate under the circumstances. Material
assumptions and material risks may cause actual performance to
differ from the company's expectations underlying its business
outlook. In particular, the global economy has experienced
substantial disruption due to concerns regarding economic effects
associated with the macroeconomic backdrop and ongoing geopolitical
risks. The company's business outlook assumes that uncertain
macroeconomic and geopolitical conditions will continue to disrupt
the economy and cause periods of volatility, however, these
conditions may last substantially longer than expected and any
worsening of the global economic or business environment could
impact the company's ability to achieve its outlook and affect its
results and other expectations. For a discussion of material
assumptions and material risks related to the company's 2023
outlook, please see page 19 of the company's second-quarter
management's discussion and analysis (MD&A) for the period
ended June 30, 2023. The
company's quarterly MD&A and annual report are filed with, or
furnished to, the Canadian securities regulatory authorities and
the U.S. SEC and are also available in the "Investor Relations"
section of tr.com.
The company has provided an updated outlook for the purpose
of presenting information about current expectations for the
periods presented. 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.
CONTACTS
|
|
MEDIA
Andrew Green
Senior Director,
Corporate Affairs
+1 332 219
1511
andrew.green@tr.com
|
INVESTORS
Gary Bisbee,
CFA
Head of Investor
Relations
+1 646 540
3249
gary.bisbee@tr.com
|
Thomson Reuters will webcast a discussion of its
third-quarter 2023 results and its 2023 business outlook today
beginning at 9:00 a.m. Eastern Daylight
Time (EDT). You can access the webcast by visiting
ir.tr.com. An archive of the webcast will be available following
the presentation.
Thomson Reuters
Corporation
Consolidated Income
Statement
(millions of U.S.
dollars, except per share data)
(unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2023
|
2022
|
|
2023
|
2022
|
CONTINUING
OPERATIONS
|
|
|
|
|
|
Revenues
|
$1,594
|
$1,574
|
|
$4,979
|
$4,862
|
Operating
expenses
|
(958)
|
(1,023)
|
|
(3,022)
|
(3,145)
|
Depreciation
|
(28)
|
(34)
|
|
(87)
|
(110)
|
Amortization of
computer software
|
(132)
|
(119)
|
|
(377)
|
(354)
|
Amortization of other
identifiable intangible assets
|
(24)
|
(25)
|
|
(72)
|
(76)
|
Other operating
(losses) gains, net
|
(11)
|
25
|
|
353
|
26
|
Operating
profit
|
441
|
398
|
|
1,774
|
1,203
|
Finance costs,
net:
|
|
|
|
|
|
Net interest
expense
|
(32)
|
(48)
|
|
(121)
|
(145)
|
Other finance income
(costs)
|
117
|
448
|
|
(75)
|
862
|
Income before tax and
equity method investments
|
526
|
798
|
|
1,578
|
1,920
|
Share of post-tax
(losses) earnings in equity method investments
|
(174)
|
(525)
|
|
815
|
(552)
|
Tax benefit
(expense)
|
18
|
(8)
|
|
(397)
|
(156)
|
Earnings from
continuing operations
|
370
|
265
|
|
1,996
|
1,212
|
(Loss) earnings from
discontinued operations, net of tax
|
(3)
|
(37)
|
|
21
|
(92)
|
Net earnings
|
$367
|
$228
|
|
$2,017
|
$1,120
|
Earnings attributable
to common shareholders
|
$367
|
$228
|
|
$2,017
|
$1,120
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic earnings (loss)
per share:
|
|
|
|
|
|
From
continuing operations
|
$0.81
|
$0.55
|
|
$4.27
|
$2.49
|
From
discontinued operations
|
(0.01)
|
(0.08)
|
|
0.05
|
(0.19)
|
Basic earnings per
share
|
$0.80
|
$0.47
|
|
$4.32
|
$2.30
|
|
|
|
|
|
|
Diluted earnings (loss)
per share:
|
|
|
|
|
|
From
continuing operations
|
$0.81
|
$0.55
|
|
$4.27
|
$2.49
|
From
discontinued operations
|
(0.01)
|
(0.08)
|
|
0.04
|
(0.19)
|
Diluted earnings per
share
|
$0.80
|
$0.47
|
|
$4.31
|
$2.30
|
|
|
|
|
|
|
Basic weighted-average
common shares
|
455,458,515
|
483,103,155
|
|
466,078,377
|
485,616,132
|
Diluted
weighted-average common shares
|
456,062,363
|
483,888,186
|
|
466,838,142
|
486,309,037
|
Thomson Reuters
Corporation
Consolidated
Statement of Financial Position
(millions of U.S.
dollars)
(unaudited)
|
|
|
September
30,
|
|
December
31,
|
2023
|
|
2022
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$2,516
|
|
$1,069
|
Trade and other
receivables
|
982
|
|
1,069
|
Other financial
assets
|
118
|
|
204
|
Prepaid expenses and
other current assets
|
439
|
|
469
|
Current
assets
|
4,055
|
|
2,811
|
|
|
|
|
Property and equipment,
net
|
395
|
|
414
|
Computer software,
net
|
1,256
|
|
935
|
Other identifiable
intangible assets, net
|
3,175
|
|
3,219
|
Goodwill
|
6,667
|
|
5,869
|
Equity method
investments
|
1,801
|
|
6,199
|
Other financial
assets
|
373
|
|
527
|
Other non-current
assets
|
581
|
|
619
|
Deferred tax
|
1,046
|
|
1,118
|
Total
assets
|
$19,349
|
|
$21,711
|
|
|
|
|
Liabilities and
equity
|
|
|
|
Liabilities
|
|
|
|
Current
indebtedness
|
$1,480
|
|
$1,647
|
Payables, accruals and
provisions
|
925
|
|
1,222
|
Current tax
liabilities
|
423
|
|
324
|
Deferred
revenue
|
935
|
|
886
|
Other financial
liabilities
|
85
|
|
812
|
Current
liabilities
|
3,848
|
|
4,891
|
|
|
|
|
Long-term
indebtedness
|
2,878
|
|
3,114
|
Provisions and other
non-current liabilities
|
720
|
|
691
|
Other financial
liabilities
|
204
|
|
233
|
Deferred tax
|
507
|
|
897
|
Total
liabilities
|
8,157
|
|
9,826
|
|
|
|
|
Equity
|
|
|
|
Capital
|
3,388
|
|
5,398
|
Retained
earnings
|
8,933
|
|
7,642
|
Accumulated other
comprehensive loss
|
(1,129)
|
|
(1,155)
|
Total
equity
|
11,192
|
|
11,885
|
Total liabilities
and equity
|
$19,349
|
|
$21,711
|
Thomson Reuters
Corporation
Consolidated
Statement of Cash Flow
(millions of U.S.
dollars)
(unaudited)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2023
|
2022
|
|
2023
|
2022
|
Cash provided by
(used in):
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
Earnings from
continuing operations
|
$370
|
$265
|
|
$1,996
|
$1,212
|
Adjustments
for:
|
|
|
|
|
|
Depreciation
|
28
|
34
|
|
87
|
110
|
Amortization of
computer software
|
132
|
119
|
|
377
|
354
|
Amortization of other
identifiable intangible assets
|
24
|
25
|
|
72
|
76
|
Net losses (gains) on
disposals of businesses and investments
|
6
|
(30)
|
|
(341)
|
(29)
|
Share of post-tax
losses (earnings) in equity method investments
|
174
|
525
|
|
(815)
|
552
|
Deferred
tax
|
(251)
|
(176)
|
|
(369)
|
(193)
|
Other
|
(89)
|
(417)
|
|
188
|
(742)
|
Changes in working
capital and other items
|
257
|
181
|
|
417
|
(35)
|
Operating cash flows
from continuing operations
|
651
|
526
|
|
1,612
|
1,305
|
Operating cash flows
from discontinued operations
|
23
|
5
|
|
24
|
(66)
|
Net cash provided by
operating activities
|
674
|
531
|
|
1,636
|
1,239
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
Acquisitions, net of
cash acquired
|
(678)
|
(19)
|
|
(1,201)
|
(190)
|
Proceeds from disposals
of businesses and investments
|
-
|
29
|
|
418
|
29
|
Proceeds from sales of
LSEG shares
|
1,517
|
24
|
|
5,393
|
24
|
Capital
expenditures
|
(145)
|
(152)
|
|
(412)
|
(460)
|
Other investing
activities
|
14
|
25
|
|
82
|
87
|
Taxes paid on sales of
LSEG shares and disposals of businesses
|
(273)
|
-
|
|
(543)
|
-
|
Investing cash flows
from continuing operations
|
435
|
(93)
|
|
3,737
|
(510)
|
Investing cash flows
from discontinued operations
|
-
|
-
|
|
(1)
|
(16)
|
Net cash provided by
(used in) investing activities
|
435
|
(93)
|
|
3,736
|
(526)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
Net (repayments)
borrowings under short-term loan facilities
|
(1,214)
|
319
|
|
(443)
|
369
|
Payments of lease
principal
|
(13)
|
(17)
|
|
(44)
|
(50)
|
Payments for return of
capital on common shares
|
-
|
-
|
|
(2,045)
|
-
|
Repurchases of common
shares
|
-
|
(504)
|
|
(718)
|
(698)
|
Dividends paid on
preference shares
|
(1)
|
(1)
|
|
(4)
|
(2)
|
Dividends paid on
common shares
|
(218)
|
(208)
|
|
(672)
|
(627)
|
Other financing
activities
|
(3)
|
(25)
|
|
2
|
(16)
|
Net cash used in
financing activities
|
(1,449)
|
(436)
|
|
(3,924)
|
(1,024)
|
Translation
adjustments
|
(2)
|
(4)
|
|
(1)
|
(8)
|
(Decrease) increase in
cash and cash equivalents
|
(342)
|
(2)
|
|
1,447
|
(319)
|
Cash and cash
equivalents at beginning of period
|
2,858
|
461
|
|
1,069
|
778
|
Cash and cash
equivalents at end of period
|
$2,516
|
$459
|
|
$2,516
|
$459
|
Thomson Reuters
Corporation
|
Reconciliation of
Earnings from Continuing Operations to Adjusted
EBITDA(1)
|
(millions
of U.S. dollars, except for
margins)
|
(unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
Year
Ended
|
September
30,
|
|
|
|
September
30,
|
|
December
31,
|
|
2023
|
2022
|
|
|
2023
|
2022
|
|
2022
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$370
|
$265
|
|
|
$1,996
|
$1,212
|
|
$1,391
|
Adjustments to
remove:
|
|
|
|
|
|
|
|
|
Tax (benefit)
expense
|
(18)
|
8
|
|
|
397
|
156
|
|
259
|
Other finance (income)
costs
|
(117)
|
(448)
|
|
|
75
|
(862)
|
|
(444)
|
Net interest
expense
|
32
|
48
|
|
|
121
|
145
|
|
196
|
Amortization of other
identifiable intangible assets
|
24
|
25
|
|
|
72
|
76
|
|
99
|
Amortization of
computer software
|
132
|
119
|
|
|
377
|
354
|
|
485
|
Depreciation
|
28
|
34
|
|
|
87
|
110
|
|
140
|
EBITDA
|
$451
|
$51
|
|
|
$3,125
|
$1,191
|
|
$2,126
|
Adjustments to
remove:
|
|
|
|
|
|
|
|
|
Share of post-tax
losses (earnings) in equity
method
investments
|
174
|
525
|
|
|
(815)
|
552
|
|
432
|
Other operating losses
(gains), net
|
11
|
(25)
|
|
|
(353)
|
(26)
|
|
(211)
|
Fair value
adjustments*
|
(4)
|
(16)
|
|
|
14
|
(21)
|
|
(18)
|
Adjusted
EBITDA(1)
|
$632
|
$535
|
|
|
$1,971
|
$1,696
|
|
$2,329
|
Adjusted EBITDA
margin(1)
|
39.6 %
|
34.0 %
|
|
|
39.5 %
|
34.9 %
|
|
35.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Fair value
adjustments primarily represent gains or losses on intercompany
balances that arise in the ordinary course of business due to
changes in foreign currency exchange rates, which are a component
of operating expenses, as well as adjustments related to acquired
deferred revenue.
|
Thomson Reuters
Corporation
|
Reconciliation of
Net Cash Provided By Operating Activities to Free Cash
Flow(1)
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Year
Ended
|
September
30,
|
|
September
30,
|
|
December
31,
|
|
2023
|
2022
|
|
2023
|
2022
|
|
2022
|
Net cash provided by
operating activities
|
$674
|
$531
|
|
$1,636
|
$1,239
|
|
$1,915
|
Capital
expenditures
|
(145)
|
(152)
|
|
(412)
|
(460)
|
|
(595)
|
Other investing
activities
|
14
|
25
|
|
82
|
87
|
|
88
|
Payments of lease
principal
|
(13)
|
(17)
|
|
(44)
|
(50)
|
|
(65)
|
Dividends paid on
preference shares
|
(1)
|
(1)
|
|
(4)
|
(2)
|
|
(3)
|
Free cash
flow(1)
|
$529
|
$386
|
|
$1,258
|
$814
|
|
$1,340
|
Thomson Reuters
Corporation
|
Reconciliation of
Capital Expenditures to Accrued Capital
Expenditures(1)
|
(millions of
U.S. dollars)
|
(unaudited)
|
|
|
|
Year
Ended
|
|
|
December
31,
|
|
|
|
|
2022
|
Capital
expenditures
|
|
|
|
$595
|
Remove: IFRS adjustment
to cash basis
|
|
|
|
(50)
|
Accrued capital
expenditures (1)
|
|
|
|
$545
|
Accrued capital
expenditures as a percentage of
revenues(1)
|
|
|
|
8.2 %
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Refer to page 24 for
additional information on non-IFRS financial measures.
|
Thomson Reuters
Corporation
|
|
Reconciliation of
Net Earnings to Adjusted
Earnings(1)
|
|
Reconciliation of
Total Change in Adjusted EPS to Change in Constant
Currency(1)
|
|
(millions of
U.S. dollars, except for share and per
share data)
|
|
(unaudited)
|
|
|
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
Year
Ended
|
|
|
December
31,
|
|
|
2023
|
2022
|
|
2023
|
2022
|
|
2022
|
|
Net
earnings
|
$367
|
$228
|
|
$2,017
|
$1,120
|
|
$1,338
|
|
Adjustments to
remove:
|
|
|
|
|
|
|
|
|
Fair value
adjustments*
|
(4)
|
(16)
|
|
14
|
(21)
|
|
(18)
|
|
Amortization of
acquired computer software
|
21
|
7
|
|
48
|
27
|
|
39
|
|
Amortization of other
identifiable intangible assets
|
24
|
25
|
|
72
|
76
|
|
99
|
|
Other operating losses
(gains), net
|
11
|
(25)
|
|
(353)
|
(26)
|
|
(211)
|
|
Interest benefit
impacting comparability(2)
|
(12)
|
-
|
|
(12)
|
-
|
|
-
|
|
Other finance (income)
costs
|
(117)
|
(448)
|
|
75
|
(862)
|
|
(444)
|
|
Share of post-tax
losses (earnings) in equity method
investments
|
174
|
525
|
|
(815)
|
552
|
|
432
|
|
Tax on above
items(1)
|
(31)
|
(53)
|
|
227
|
(6)
|
|
(30)
|
|
Tax items impacting
comparability(1)(2)
|
(62)
|
-
|
|
(64)
|
(45)
|
|
15
|
|
Loss (earnings) from
discontinued operations, net of tax
|
3
|
37
|
|
(21)
|
92
|
|
53
|
|
Interim period
effective tax rate normalization(1)
|
2
|
-
|
|
(1)
|
3
|
|
-
|
|
Dividends declared on
preference shares
|
(1)
|
(1)
|
|
(4)
|
(2)
|
|
(3)
|
|
Adjusted
earnings(1)
|
$375
|
$279
|
|
$1,183
|
$908
|
|
$1,270
|
|
Adjusted
EPS(1)
|
$0.82
|
$0.58
|
|
$2.53
|
$1.87
|
|
|
|
Total
change
|
41 %
|
|
|
35 %
|
|
|
|
|
Foreign
currency
|
0 %
|
|
|
0 %
|
|
|
|
|
Constant
currency
|
41 %
|
|
|
35 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares (millions)
|
456.1
|
483.9
|
|
466.8
|
486.3
|
|
|
|
Reconciliation of
Effective Tax Rate on Adjusted
Earnings(1)
|
Year-ended
December 31,
|
|
2022
|
Adjusted
earnings
|
$1,270
|
Plus: Dividends
declared on preference shares
|
3
|
Plus: Tax expense on
adjusted earnings
|
274
|
Pre-Tax Adjusted
earnings
|
$1,547
|
|
|
IFRS Tax
expense
|
$259
|
Remove tax related
to:
|
|
Amortization of acquired computer software
|
8
|
Amortization of other identifiable intangible assets
|
22
|
Share of
post-tax losses in equity method investments
|
124
|
Other
finance income
|
(80)
|
Other
operating gains, net
|
(42)
|
Other
items
|
(2)
|
Subtotal – Remove tax
benefit on pre-tax items removed from adjusted earnings
|
30
|
Remove: Tax items
impacting comparability
|
(15)
|
Total: Remove all items
impacting comparability
|
15
|
Tax expense on
adjusted earnings
|
$274
|
Effective tax rate
on adjusted earnings
|
17.7 %
|
* Fair value
adjustments primarily represent gains or losses on
intercompany balances that arise in the ordinary course of business
due to changes in foreign currency exchange rates, which are a
component of operating expenses, as well as adjustments related to
acquired deferred revenue.
|
|
|
(1)
|
Refer to page 24 for
additional information on non-IFRS financial measures.
|
(2)
|
In 2023, release of tax
and interest reserves due to the expiration of statutes of
limitation.
|
Thomson Reuters
Corporation
|
Reconciliation of
Changes in Revenues to Changes in Revenues on a Constant
Currency(1) and Organic
Basis(1)
|
(millions of
U.S. dollars)
|
(unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
September
30,
|
|
Change
|
|
|
2023
|
2022
|
|
Total
|
Foreign
Currency
|
SUBTOTAL
Constant
Currency
|
Net
Acquisitions/
(Divestitures)
|
Organic
|
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$688
|
$701
|
|
-2 %
|
0 %
|
-2 %
|
-9 %
|
6 %
|
|
Corporates
|
|
391
|
373
|
|
5 %
|
1 %
|
4 %
|
-3 %
|
7 %
|
|
Tax &
Accounting Professionals
|
|
203
|
190
|
|
7 %
|
-1 %
|
8 %
|
-4 %
|
12 %
|
|
"Big 3" Segments
Combined(1)
|
|
1,282
|
1,264
|
|
1 %
|
0 %
|
1 %
|
-6 %
|
7 %
|
|
Reuters
News
|
|
180
|
171
|
|
6 %
|
1 %
|
5 %
|
1 %
|
3 %
|
|
Global
Print
|
|
137
|
146
|
|
-6 %
|
0 %
|
-5 %
|
-1 %
|
-4 %
|
|
Eliminations/Rounding
|
|
(5)
|
(7)
|
|
|
|
|
|
|
|
Revenues
|
|
$1,594
|
$1,574
|
|
1 %
|
0 %
|
1 %
|
-5 %
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$661
|
$658
|
|
0 %
|
1 %
|
0 %
|
-6 %
|
6 %
|
|
Corporates
|
|
349
|
330
|
|
6 %
|
1 %
|
5 %
|
-3 %
|
8 %
|
|
Tax &
Accounting Professionals
|
|
160
|
158
|
|
1 %
|
-1 %
|
2 %
|
-8 %
|
9 %
|
|
"Big 3" Segments
Combined(1)
|
|
1,170
|
1,146
|
|
2 %
|
1 %
|
2 %
|
-5 %
|
7 %
|
|
Reuters
News
|
|
158
|
152
|
|
4 %
|
1 %
|
3 %
|
1 %
|
3 %
|
|
Eliminations/Rounding
|
|
(5)
|
(7)
|
|
|
|
|
|
|
|
Total Recurring
Revenues
|
|
$1,323
|
$1,291
|
|
2 %
|
1 %
|
2 %
|
-5 %
|
7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$27
|
$43
|
|
-38 %
|
-1 %
|
-37 %
|
-49 %
|
12 %
|
|
Corporates
|
|
42
|
43
|
|
-3 %
|
1 %
|
-4 %
|
-1 %
|
-2 %
|
|
Tax &
Accounting Professionals
|
|
43
|
32
|
|
37 %
|
-2 %
|
39 %
|
19 %
|
20 %
|
|
"Big 3" Segments
Combined(1)
|
|
112
|
118
|
|
-5 %
|
-1 %
|
-4 %
|
-13 %
|
9 %
|
|
Reuters
News
|
|
22
|
19
|
|
17 %
|
5 %
|
12 %
|
3 %
|
9 %
|
|
Total Transactions
Revenues
|
|
$134
|
$137
|
|
-2 %
|
0 %
|
-2 %
|
-11 %
|
9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth percentages
are computed using whole dollars. As a result, percentages
calculated from reported amounts may differ from those presented,
and growth components may not total due to
rounding.
|
|
|
(1)
|
Refer to page 24 for
additional information on non-IFRS financial measures.
|
Thomson Reuters
Corporation
|
Reconciliation of
Changes in Revenues to Changes in Revenues on a Constant
Currency(1) and Organic
Basis(1)
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
September
30,
|
|
Change
|
|
|
2023
|
2022
|
|
Total
|
Foreign
Currency
|
SUBTOTAL
Constant
Currency
|
Net
Acquisitions/
(Divestitures)
|
Organic
|
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$2,107
|
$2,099
|
|
0 %
|
0 %
|
1 %
|
-5 %
|
6 %
|
|
Corporates
|
|
1,218
|
1,157
|
|
5 %
|
0 %
|
5 %
|
-2 %
|
7 %
|
|
Tax &
Accounting Professionals
|
|
714
|
660
|
|
8 %
|
-1 %
|
9 %
|
-1 %
|
11 %
|
|
"Big 3" Segments
Combined(1)
|
|
4,039
|
3,916
|
|
3 %
|
0 %
|
4 %
|
-3 %
|
7 %
|
|
Reuters
News
|
|
549
|
535
|
|
3 %
|
0 %
|
2 %
|
0 %
|
2 %
|
|
Global
Print
|
|
408
|
430
|
|
-5 %
|
-1 %
|
-4 %
|
-1 %
|
-3 %
|
|
Eliminations/Rounding
|
|
(17)
|
(19)
|
|
|
|
|
|
|
|
Revenues
|
|
$4,979
|
$4,862
|
|
2 %
|
0 %
|
3 %
|
-3 %
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$2,000
|
$1,967
|
|
2 %
|
0 %
|
2 %
|
-4 %
|
6 %
|
|
Corporates
|
|
1,015
|
968
|
|
5 %
|
0 %
|
5 %
|
-3 %
|
8 %
|
|
Tax &
Accounting Professionals
|
|
503
|
507
|
|
-1 %
|
-1 %
|
0 %
|
-8 %
|
8 %
|
|
"Big 3" Segments
Combined(1)
|
|
3,518
|
3,442
|
|
2 %
|
0 %
|
3 %
|
-4 %
|
7 %
|
|
Reuters
News
|
|
468
|
459
|
|
2 %
|
0 %
|
2 %
|
0 %
|
2 %
|
|
Eliminations/Rounding
|
|
(17)
|
(19)
|
|
|
|
|
|
|
|
Total Recurring
Revenues
|
|
$3,969
|
$3,882
|
|
2 %
|
0 %
|
3 %
|
-4 %
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$107
|
$132
|
|
-19 %
|
-1 %
|
-18 %
|
-25 %
|
7 %
|
|
Corporates
|
|
203
|
189
|
|
7 %
|
0 %
|
7 %
|
2 %
|
5 %
|
|
Tax &
Accounting Professionals
|
|
211
|
153
|
|
38 %
|
-2 %
|
41 %
|
23 %
|
17 %
|
|
"Big 3" Segments
Combined(1)
|
|
521
|
474
|
|
10 %
|
-1 %
|
11 %
|
1 %
|
10 %
|
|
Reuters
News
|
|
81
|
76
|
|
6 %
|
4 %
|
2 %
|
1 %
|
2 %
|
|
Total Transactions
Revenues
|
|
$602
|
$550
|
|
9 %
|
0 %
|
10 %
|
1 %
|
9 %
|
|
|
|
|
Year
Ended
|
|
|
|
|
|
|
|
|
December
31,
|
|
Change
|
|
|
2022
|
2021
|
|
Total
|
Foreign
Currency
|
SUBTOTAL
Constant
Currency
|
Net
Acquisitions/
(Divestitures)
|
Organic
|
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$2,803
|
$2,712
|
|
3 %
|
-2 %
|
5 %
|
-1 %
|
6 %
|
|
Corporates
|
|
1,536
|
1,440
|
|
7 %
|
-1 %
|
8 %
|
0 %
|
8 %
|
|
Tax &
Accounting Professionals
|
|
986
|
915
|
|
8 %
|
-1 %
|
8 %
|
-1 %
|
9 %
|
|
"Big 3" Segments
Combined(1)
|
|
5,325
|
5,067
|
|
5 %
|
-1 %
|
6 %
|
-1 %
|
7 %
|
|
Reuters
News
|
|
733
|
694
|
|
6 %
|
-3 %
|
9 %
|
0 %
|
9 %
|
|
Global
Print
|
|
592
|
609
|
|
-3 %
|
-2 %
|
-1 %
|
0 %
|
-1 %
|
|
Eliminations/Rounding
|
|
(23)
|
(22)
|
|
|
|
|
|
|
|
Revenues
|
|
$6,627
|
$6,348
|
|
4 %
|
-2 %
|
6 %
|
0 %
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth percentages
are computed using whole dollars. As a result, percentages
calculated from reported amounts may differ from those presented,
and growth components may not total due to rounding.
|
(1)
|
Refer to page 24 for
additional information on non-IFRS financial measures.
|
Thomson Reuters
Corporation
|
Reconciliation of
Changes in Adjusted EBITDA(1) and Related
Margin(1) to Changes on a Constant
Currency Basis(1)
|
(millions of
U.S. dollars, except for
margins)
|
(unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
September
30,
|
|
Change
|
|
|
|
2023
|
2022
|
|
Total
|
Foreign
Currency
|
Constant
Currency
|
|
Adjusted
EBITDA(1)
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$338
|
$324
|
|
4 %
|
1 %
|
3 %
|
|
Corporates
|
|
164
|
147
|
|
12 %
|
1 %
|
11 %
|
|
Tax &
Accounting Professionals
|
|
64
|
59
|
|
8 %
|
-2 %
|
10 %
|
|
"Big 3" Segments
Combined(1)
|
|
566
|
530
|
|
7 %
|
1 %
|
6 %
|
|
Reuters
News
|
|
37
|
33
|
|
10 %
|
3 %
|
6 %
|
|
Global
Print
|
|
55
|
50
|
|
9 %
|
1 %
|
8 %
|
|
Corporate
costs
|
|
(26)
|
(78)
|
|
n/a
|
n/a
|
n/a
|
|
Adjusted
EBITDA
|
|
$632
|
$535
|
|
18 %
|
1 %
|
17 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
49.1 %
|
46.2 %
|
|
290bp
|
30bp
|
260bp
|
|
Corporates
|
|
41.9 %
|
39.2 %
|
|
270bp
|
-10bp
|
280bp
|
|
Tax &
Accounting Professionals
|
|
31.2 %
|
31.0 %
|
|
20bp
|
-30bp
|
50bp
|
|
"Big 3" Segments
Combined(1)
|
|
44.0 %
|
41.9 %
|
|
210bp
|
0bp
|
210bp
|
|
Reuters
News
|
|
20.4 %
|
19.7 %
|
|
70bp
|
40bp
|
30bp
|
|
Global
Print
|
|
39.6 %
|
34.4 %
|
|
520bp
|
40bp
|
480bp
|
|
Adjusted EBITDA
margin
|
|
39.6 %
|
34.0 %
|
|
560bp
|
10bp
|
550bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thomson Reuters
Corporation
|
Reconciliation of
Changes in Adjusted EBITDA(1) and Related
Margin(1) to Changes on a Constant
Currency Basis(1)
|
(millions of
U.S. dollars, except for
margins)
|
(unaudited)
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
Change
|
|
|
|
2023
|
2022
|
|
Total
|
Foreign
Currency
|
Constant
Currency
|
|
Adjusted
EBITDA(1)
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$1,001
|
$933
|
|
7 %
|
0 %
|
7 %
|
|
Corporates
|
|
481
|
443
|
|
9 %
|
0 %
|
9 %
|
|
Tax &
Accounting Professionals
|
|
302
|
262
|
|
15 %
|
-1 %
|
16 %
|
|
"Big 3" Segments
Combined(1)
|
|
1,784
|
1,638
|
|
9 %
|
0 %
|
9 %
|
|
Reuters
News
|
|
111
|
114
|
|
-3 %
|
7 %
|
-10 %
|
|
Global
Print
|
|
158
|
153
|
|
3 %
|
0 %
|
3 %
|
|
Corporate
costs
|
|
(82)
|
(209)
|
|
n/a
|
n/a
|
n/a
|
|
Adjusted
EBITDA
|
|
$1,971
|
$1,696
|
|
16 %
|
0 %
|
16 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
47.5 %
|
44.5 %
|
|
300bp
|
20bp
|
280bp
|
|
Corporates
|
|
39.4 %
|
38.2 %
|
|
120bp
|
10bp
|
110bp
|
|
Tax &
Accounting Professionals
|
|
41.6 %
|
39.7 %
|
|
190bp
|
10bp
|
180bp
|
|
"Big 3" Segments
Combined(1)
|
|
44.0 %
|
41.8 %
|
|
220bp
|
20bp
|
200bp
|
|
Reuters
News
|
|
20.1 %
|
21.4 %
|
|
-130bp
|
150bp
|
-280bp
|
|
Global
Print
|
|
38.6 %
|
35.6 %
|
|
300bp
|
20bp
|
280bp
|
|
Adjusted EBITDA
margin
|
|
39.5 %
|
34.9 %
|
|
460bp
|
30bp
|
430bp
|
|
|
|
|
|
|
|
|
|
|
|
n/a: not
applicable
|
Growth percentages
and margins are computed using whole dollars. As a result,
percentages and margins calculated from reported amounts may differ
from those presented, and growth components may not total due to
rounding.
|
(1)
|
Refer to page 24 for
additional information on non-IFRS financial measures.
|
Reconciliation of adjusted EBITDA margin
(1)
To compute segment and consolidated adjusted EBITDA margin, we
exclude fair value adjustments related to acquired deferred revenue
from our IFRS revenues. The chart below reconciles IFRS revenues to
revenues used in the calculation of adjusted EBITDA margin, which
excludes fair value adjustments related to acquired deferred
revenue.
Three months ended
September 30, 2023
|
|
IFRS
revenues
|
Remove fair value
adjustments to acquired deferred revenue
|
Revenues excluding
fair value adjustments to acquired deferred revenue
|
Adjusted
EBITDA
|
Adjusted EBITDA
Margin
|
|
Legal
Professionals
|
$688
|
$1
|
$689
|
$338
|
49.1 %
|
|
Corporates
|
391
|
-
|
391
|
164
|
41.9 %
|
|
Tax & Accounting
Professionals
|
203
|
1
|
204
|
64
|
31.2 %
|
|
"Big 3" Segments
Combined
|
1,282
|
2
|
1,284
|
566
|
44.0 %
|
|
Reuters News
|
180
|
-
|
180
|
37
|
20.4 %
|
|
Global Print
|
137
|
-
|
137
|
55
|
39.6 %
|
|
Eliminations/
Rounding
|
(5)
|
-
|
(5)
|
-
|
n/a
|
|
Corporate
costs
|
-
|
-
|
-
|
(26)
|
n/a
|
|
Consolidated
totals
|
$1,594
|
$2
|
$1,596
|
$632
|
39.6 %
|
|
Nine months ended
September 30, 2023
|
|
IFRS
revenues
|
Remove fair value
adjustments to acquired deferred revenue
|
Revenues excluding
fair value adjustments to acquired deferred revenue
|
Adjusted
EBITDA
|
Adjusted EBITDA
Margin
|
|
Legal
Professionals
|
$2,107
|
$1
|
$2,108
|
$1,001
|
47.5 %
|
|
Corporates
|
1,218
|
3
|
1,221
|
481
|
39.4 %
|
|
Tax & Accounting
Professionals
|
714
|
11
|
725
|
302
|
41.6 %
|
|
"Big 3" Segments
Combined
|
4,039
|
15
|
4,054
|
1,784
|
44.0 %
|
|
Reuters News
|
549
|
-
|
549
|
111
|
20.1 %
|
|
Global Print
|
408
|
-
|
408
|
158
|
38.6 %
|
|
Eliminations/
Rounding
|
(17)
|
-
|
(17)
|
-
|
n/a
|
|
Corporate
costs
|
-
|
-
|
-
|
(82)
|
n/a
|
|
Consolidated
totals
|
$4,979
|
$15
|
$4,994
|
$1,971
|
39.5 %
|
|
Margins are computed
using whole dollars, as a result, margins calculated from reported
amounts may differ from those presented due to
rounding.
|
n/a: not
applicable
|
|
|
(1)
|
Refer to page 24 for
additional information on non-IFRS financial measures.
|
Thomson Reuters
Corporation
|
Segment and
Consolidated Adjusted EBITDA(1) and the Related
Margin(1)
|
(millions of
U.S. dollars, except for
margins)
|
(unaudited)
|
|
|
|
Year
Ended
|
|
|
December
31,
|
|
|
2022
|
Adjusted
EBITDA(1)
|
|
|
Legal
Professionals
|
|
$1,227
|
Corporates
|
|
578
|
Tax &
Accounting Professionals
|
|
451
|
"Big 3" Segments
Combined(1)
|
|
2,256
|
Reuters
News
|
|
154
|
Global
Print
|
|
212
|
Corporate
costs
|
|
(293)
|
Adjusted
EBITDA
|
|
$2,329
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
Legal
Professionals
|
|
43.8 %
|
Corporates
|
|
37.6 %
|
Tax &
Accounting Professionals
|
|
45.8 %
|
"Big 3" Segments
Combined(1)
|
|
42.4 %
|
Reuters
News
|
|
21.0 %
|
Global
Print
|
|
35.7 %
|
Adjusted EBITDA
margin
|
|
35.1 %
|
|
|
|
Margins are computed
using whole dollars, as a result, margins calculated from reported
amounts may differ from those presented due to
rounding.
|
(1)
|
Refer to page 24 for
additional information on non-IFRS financial measures.
|
Non-IFRS Financial
Measures
|
Definition
|
Why Useful to the
Company and Investors
|
Adjusted EBITDA and the
related margin
|
Represents earnings or
losses from continuing operations before tax expense or benefit,
net interest expense, other finance costs or income, depreciation,
amortization of software and other identifiable intangible assets,
Thomson Reuters share of post-tax earnings or losses in equity
method investments, other operating gains and losses, certain asset
impairment charges and fair value adjustments, including those
related to acquired deferred revenue.
The related margin is
adjusted EBITDA expressed as a percentage of revenues. For purposes
of this calculation, revenues are before fair value adjustments to
acquired deferred revenue.
|
Provides a consistent
basis to evaluate operating profitability and performance trends by
excluding items that the company does not consider to be
controllable activities for this purpose.
Also, represents a
measure commonly reported and widely used by investors as a
valuation metric, as well as to assess the company's ability to
incur and service debt.
|
Adjusted earnings and
adjusted EPS
|
Net earnings or loss
including dividends declared on preference shares but excluding the
post-tax impacts of fair value adjustments, including those related
to acquired deferred revenue, amortization of acquired intangible
assets (attributable to other identifiable intangible assets and
acquired computer software), other operating gains and losses,
certain asset impairment charges, other finance costs or income,
Thomson Reuters share of post-tax earnings or losses in equity
method investments, discontinued operations and other items
affecting comparability. Acquired intangible assets contribute to
the generation of revenues from acquired companies, which are
included in our computation of adjusted earnings.
The post-tax amount of
each item is excluded from adjusted earnings based on the specific
tax rules and tax rates associated with the nature and jurisdiction
of each item.
Adjusted EPS is
calculated from adjusted earnings using diluted weighted-average
shares and does not represent actual earnings or loss per share
attributable to shareholders.
|
Provides a more
comparable basis to analyze earnings.
These measures are
commonly used by shareholders to measure performance.
|
Effective tax rate on
adjusted earnings
|
Adjusted tax expense
divided by pre-tax adjusted earnings. Adjusted tax expense is
computed as income tax (benefit) expense plus or minus the income
tax impacts of all items impacting adjusted earnings (as described
above), and other tax items impacting comparability.
In interim periods, we
also make an adjustment to reflect income taxes based on the
estimated full-year effective tax rate. Earnings or losses for
interim periods under IFRS reflect income taxes based on the
estimated effective tax rates of each of the jurisdictions in which
Thomson Reuters operates. The non-IFRS adjustment reallocates
estimated full-year income taxes between interim periods but has no
effect on full-year income taxes.
|
Provides a basis to
analyze the effective tax rate associated with adjusted
earnings.
Because the
geographical mix of pre-tax profits and losses in interim periods
may be different from that for the full year, our effective tax
rate computed in accordance with IFRS may be more volatile by
quarter. Therefore, we believe that using the expected full-year
effective tax rate provides more comparability among interim
periods.
|
Free cash
flow
|
Net cash provided by
operating activities, proceeds from disposals of property and
equipment, and other investing activities, less capital
expenditures, payments of lease principal and dividends paid on the
company's preference shares.
|
Helps assess the
company's ability, over the long term, to create value for its
shareholders as it represents cash available to repay debt, pay
common dividends and fund share repurchases and
acquisitions.
|
Changes before the
impact of foreign currency or at "constant currency"
|
The changes in
revenues, adjusted EBITDA and the related margin, and adjusted EPS
before currency (at constant currency or excluding the effects of
currency) are determined by converting the current and equivalent
prior period's local currency results using the same foreign
currency exchange rate.
|
Provides better
comparability of business trends from period to period.
|
Changes in revenues
computed on an "organic" basis
|
Represent changes in
revenues of the company's existing businesses at constant currency.
The metric excludes the distortive impacts of acquisitions and
dispositions from not owning the business in both comparable
periods.
|
Provides further
insight into the performance of the company's existing businesses
by excluding distortive impacts and serves as a better measure of
the company's ability to grow its business over the long
term.
|
Accrued capital
expenditures as a percentage of revenues
|
Accrued capital
expenditures divided by revenues, where accrued capital
expenditures include amounts that remain unpaid at the end of the
reporting period. For purposes of this calculation, revenues are
before fair value adjustments to acquired deferred
revenue.
|
Reflects the basis on
which the company manages capital expenditures for internal
budgeting purposes.
|
"Big 3"
segments
|
The company's combined
Legal Professionals, Corporates and Tax & Accounting
Professionals segments. All measures reported for the "Big 3"
segments are non-IFRS financial measures.
|
The "Big 3" segments
comprised approximately 80% of revenues and represent the core of
the company's business information service product
offerings.
|
|
Please refer to
reconciliations for the most directly comparable IFRS financial
measures.
|
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SOURCE Thomson Reuters