WASHINGTON, Nov. 2, 2011 /PRNewswire/ -- The Advisory Board
Company (NASDAQ: ABCO) today announced financial results for the
quarter ended September 30, 2011, the
second quarter of its 2012 fiscal year. Revenue for the
quarter increased 30.7% to $92.9
million, from $71.1 million
for the quarter ended September 30,
2010. Contract value increased 29.7% to $369.1 million as of September 30, 2011, up from $284.7 million as of September 30, 2010. For the quarter ended
September 30, 2011, net income was
$5.2 million, or $0.30 per diluted share, compared to net income
of $4.9 million, or $0.30 per diluted share, for the quarter ended
September 30, 2010. For the
quarter ended September 30, 2011,
adjusted net income, non-GAAP earnings per diluted share, and
adjusted EBITDA, all of which are non-GAAP financial measures, were
$9.7 million, $0.56 per diluted share, and $17.2 million, respectively. For the
quarter ended September 30, 2010,
adjusted net income, non-GAAP earnings per diluted share, and
adjusted EBITDA were $7.1 million,
$0.44 per diluted share, and
$12.1 million, respectively.
(Logo:
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For the six months ended September 30,
2011, revenue increased 26.7% to $174.5 million, from $137.8 million for the six months ended
September 30, 2010. Net income was
$9.1 million, or $0.53 per diluted share, for the six months ended
September 30, 2011, compared to net
income of $9.5 million, or
$0.59 per diluted share, for the same
period of the prior fiscal year. For the six months ended
September 30, 2011, adjusted net
income, non-GAAP earnings per diluted share, and adjusted EBITDA
were $18.1 million, $1.06 per diluted share, and $31.7 million, respectively. For the six
months ended September 30, 2010,
adjusted net income, non-GAAP earnings per diluted share, and
adjusted EBITDA were $14.3 million,
$0.89 per diluted share, and
$24.4 million, respectively.
Robert Musslewhite, Chief
Executive Officer of The Advisory Board Company, commented, "In
these times of unprecedented change in the health care industry,
members consistently turn to the Advisory Board for help on their
most pressing challenges. It is extremely gratifying that our
investments in expanding our capabilities to meet members' needs
are yielding deeper, more impactful relationships. With both
revenue and contract value growth of 30%, our strong financial
results for the quarter reflect the success of our strategy and
position us well going into the fourth calendar quarter."
Mr. Musslewhite continued, "I am also pleased to announce today
our launch of our Crimson Market Advantage program, which builds on
our strong Crimson platform to provide hospitals and health systems
actionable data to improve their physician outreach efforts with
the aim of enhancing physician referrals. In a market where
competition for profitable procedures has increased, hospitals
recognize that even minor volume declines can have a big impact on
revenue; yet, most organizations have little visibility into the
very referral patterns in their markets that determine growth.
Crimson Market Advantage provides technology, expertise, and
staff to help hospitals develop efficient, targeted physician
outreach efforts to identify and understand better the referring
physicians in their markets and thereby identify potential sources
of growth. The program is off to a strong start, and we are
confident in the value it will provide our members."
Investment in Evolent Health
The Company also announced an investment in a separate entity to
support health systems and other providers in their migration
toward value-based care models. Formed as an independent
company, Evolent Health is backed by capital, asset, and
intellectual property contributions from Pittsburgh-based UPMC Health Plan and The
Advisory Board Company. Evolent Health offers an integrated
population management technology platform, extensive operational
care management support, back-office payer functions, and holistic
change management support – all designed to support integrated
delivery systems and other providers in their preparation to accept
and manage all forms of value-based care reimbursement.
Mr. Musslewhite commented, "The health care system is facing
transformative change—the value-based care movement is already
redefining the ways hospitals, physicians, and payers work with one
another. Our analysis—and conversations with our thousands of
hospital and health system members—reinforces the growing need for
hospitals and health systems to develop new capabilities for
managing under new payment incentives and delivering better care
more efficiently."
Mr. Musslewhite continued, "This imperative has been the guiding
force behind our building out the most innovative and comprehensive
set of new solutions for hospitals and health systems across the
past four years, including our market-leading Crimson performance
management platform, Southwind physician alignment and management
services, and contract modeling capabilities through our
acquisition of Concuity. In that same spirit, we decided to
invest in Evolent Health."
Mr. Musslewhite concluded, "UPMC has 15 years of experience in
successfully building integrated payer-provider models as the
second-largest provider-owned health plan in the country after
Kaiser. Their innovative population management technology has
proven to generate higher quality, lower cost care. We are
excited to participate in this new venture with them, and we are
confident that Evolent Health will provide hospitals and health
systems significant value through shared access to a uniquely
effective set of population health management capabilities."
The Advisory Board Company is contributing $10 million and non-cash contributions, and will
own a minority equity interest in Evolent Health. The
financial results of Evolent Health will not change the Company's
non-GAAP earnings per share or adjusted EBITDA because the company
will record any gain or loss from Evolent Health in the other
income, net line on its income statement, commensurate with its
equity interest. Frank Williams, the former Chief Executive
Officer of The Advisory Board Company, has joined Evolent Health as
its Chief Executive Officer to drive it through its initial growth
phase.
Share Repurchase
During the three months ended September
30, 2011, the Company repurchased 39,604 shares of its
common stock at a total cost of approximately $2.4 million. As of September 30, 2011, the Company had repurchased
since the program's inception 7,604,311 shares of its common stock
at a total cost of approximately $321.0
million.
Revised Outlook for Calendar Year 2011
The Company is increasing its revenue guidance for calendar year
2011 to a range of approximately $349
million to $352 million, from a range of $342 million to $349 million. The Company
is also increasing its guidance for calendar year 2011 adjusted
EBITDA to a range of $61.5 million to $64.5
million, from a range of $60 million
to $64 million. For calendar year 2011, the Company is
increasing its guidance for non-GAAP earnings per diluted share to
a range of approximately $2.08 to
$2.17, from a range of $2.00 to
$2.13. For calendar year 2011 the Company expects
share-based compensation expense to be approximately $10 million, and amortization from
acquisition-related intangible assets to be approximately
$5 million. For the remainder of
calendar year 2011, the Company expects an effective tax rate of
approximately 37.5%.
Non-GAAP Financial Measures
This press release and the accompanying tables present
information about adjusted EBITDA, adjusted net income, and
non-GAAP earnings per diluted share, which are non-GAAP financial
measures provided as a complement to the results provided in
accordance with accounting principles generally accepted in
the United States of America
("GAAP"). We define our non-GAAP financial measures as
described below.
The term "adjusted EBITDA" refers to a financial measure that we
define as earnings before other income, net, which includes
interest income and foreign currency losses and gains; income
taxes; depreciation and amortization; amortization of
acquisition-related intangibles and capitalized software included
in cost of services; costs associated with acquisitions and similar
transactions; share-based compensation expense; and fair value
adjustments made to the Company's acquisition-related earn out
liabilities. The term "adjusted net income" refers to net
income excluding the net of tax effect share-based compensation
expense; amortization of acquisition-related intangibles; costs
associated with acquisitions and similar transactions; and fair
value adjustments made to the Company's acquisition-related earn
out liabilities. The term "non-GAAP earnings per diluted
share" refers to net income per share excluding the net of tax
effect of share-based compensation expense; amortization of
acquisition-related intangibles; costs associated with acquisitions
and similar transactions; and fair value adjustments made to the
Company's acquisition-related earn out liabilities.
The foregoing non-GAAP measures may be calculated differently
from similarly titled measures used by other companies, which
limits their usefulness as comparative measures, and should be
considered in addition to financial measures prepared in accordance
with GAAP, but should not be considered a substitute for, or
superior to, GAAP measures or results as indicators of performance.
We use these non-GAAP financial measures for internal
budgeting and other managerial purposes because they enable the
Company's management to evaluate projected operating results on a
basis that allows for comparability without regard to changes
arising from applicable tax rates, variability in interest income
and foreign currency exchange rates, periodic costs of certain
capitalized tangible and intangible assets, share-based
compensation expense, and certain non-cash and special charges.
There are limitations associated with these non-GAAP financial
measures as indicators of performance, including that they do not
reflect all changes in applicable tax rates, foreign currency
exchange rates, share-based compensation expense, or the periodic
costs of certain capitalized tangible and intangible assets used in
generating revenue in our business.
A reconciliation of the foregoing historical non-GAAP financial
measures to the most directly comparable historical GAAP financial
measures is provided below for each of the periods indicated.
It is not practicable to provide a reconciliation of
forecasted adjusted EBITDA and forecasted non-GAAP earnings per
diluted share to the most directly comparable GAAP financial
measures because certain items required for the forecast of such
GAAP financial measures cannot reasonably be estimated or predicted
at this time.
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 5,203
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|
$ 4,884
|
|
$ 9,074
|
|
$ 9,477
|
|
Provision for income
taxes
|
3,121
|
|
2,736
|
|
5,444
|
|
5,309
|
|
Other income, net
(1)
|
(448)
|
|
(577)
|
|
(1,245)
|
|
(798)
|
|
Depreciation and
amortization
|
2,143
|
|
1,433
|
|
4,068
|
|
2,810
|
|
Amortization
of intangibles (incl. in CoS)
|
1,535
|
|
1,105
|
|
2,734
|
|
2,440
|
|
Acquisition and similar
transaction charges
|
504
|
|
—
|
|
648
|
|
—
|
|
Fair value
adjustments to acquisition-related earn
out
liabilities
|
2,300
|
|
—
|
|
5,500
|
|
400
|
|
Share-based compensation
expense
|
2,800
|
|
2,484
|
|
5,515
|
|
4,790
|
|
Adjusted
EBITDA
|
$ 17,158
|
|
$ 12,065
|
|
$ 31,738
|
|
$ 24,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$ 5,203
|
|
$ 4,884
|
|
$ 9,074
|
|
$ 9,477
|
|
Amortization of acquisition-related intangibles,
net of tax
|
949
|
|
664
|
|
1,699
|
|
1,484
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|
Acquisition
and similar transaction charges, net
of tax
|
315
|
|
—
|
|
405
|
|
—
|
|
Fair
value adjustments to acquisition-related
earn out liabilities, net of tax
|
1,437
|
|
—
|
|
3,437
|
|
256
|
|
Share-based
compensation, net of tax
|
1,750
|
|
1,592
|
|
3,447
|
|
3,070
|
|
Adjusted net
income
|
$ 9,654
|
|
$ 7,140
|
|
$ 18,062
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|
$ 14,287
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per diluted
share
|
$ 0.30
|
|
$ 0.30
|
|
$ 0.53
|
|
$ 0.59
|
|
Amortization of acquisition-related intangibles,
net of tax
|
0.06
|
|
0.04
|
|
0.11
|
|
0.09
|
|
Acquisition
and similar transaction charges, net
of tax
|
0.02
|
|
—
|
|
0.02
|
|
—
|
|
Fair
value adjustments to acquisition-related
earn out liabilities, net of tax
|
0.08
|
|
—
|
|
0.20
|
|
0.02
|
|
Share-based compensation,
net of tax
|
0.10
|
|
0.10
|
|
0.20
|
|
0.19
|
|
Non-GAAP earnings per
diluted share
|
$ 0.56
|
|
$ 0.44
|
|
$ 1.06
|
|
$ 0.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other income, net
includes interest income of $0.6 million and $0.4 million for the
three months ended September 30, 2011 and 2010, respectively, and
$1.1 million and $0.7 million for the six months ended September
30, 2011 and 2010, respectively. Other income, net also includes a
foreign currency loss of $0.1 million and foreign currency gain of
$0.2 million for the three months ended September 30, 2011 and
2010, respectively. Other income, net includes foreign
currency gain of $0.2 million and $0.1 million for the six months
ended September 30, 2011 and 2010, respectively.
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Web and Conference Call Information
As previously announced, the Company will hold a conference call
to discuss its second quarter performance this evening,
November 2, 2011 at 5:30 p.m. Eastern Time. The conference call
will be available via live web cast on the Company's web site at
www.advisoryboardcompany.com/IR. To participate by telephone,
the dial-in number is 866.277.1184 and the access code is 91030480.
Participants are advised to dial-in at least five minutes
prior to the call to register. The web cast will be archived
for seven days from 8:30 p.m. Eastern
Time on Wednesday, November 2,
until 8:30 p.m. Eastern Time on
Wednesday, November 9, 2011.
About The Advisory Board Company
The Advisory Board Company is a global research, consulting, and
technology firm partnering with 125,000 leaders in 3,200
organizations across health care and higher education.
Through our innovative membership model, we collaborate with
executives and their teams to elevate performance and solve their
most pressing challenges. We provide strategic guidance,
actionable insights, web-based software solutions, and
comprehensive implementation and management services. For
more information, visit http://www.advisory.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These statements, including the Company's expectations
regarding its revenue, adjusted EBITDA, and non-GAAP earnings per
diluted share for calendar year 2011 and its effective tax rate for
fiscal year 2012 are based on information available to the Company
as of November 2, 2011, the date of
this news release, as well as the Company's current projections,
forecasts, and assumptions, and involve risks and uncertainties.
You are hereby cautioned that these statements may be
affected by certain factors, including those set forth below.
Consequently, actual operations and results may differ
materially from the results discussed or implied in the
forward-looking statements, and reported results should not be
considered as an indication of future performance. Factors
that could cause actual results to differ materially from those
indicated or implied by forward-looking statements include, among
others, changes in the financial condition of the health care
industry, our dependence on renewal of membership-based services,
the need to attract new business and retain current members and
qualified personnel, new product development, competition, risks
associated with our software tools and installation support tools,
our ability to license technology from third parties, risks
associated with anticipating market trends, industry consolidation,
variability of quarterly operating results, possible volatility in
the Company's stock price, and various factors related to income
and other taxes, including whether the District of Columbia withdraws the Company's
status as a Qualified High-Tech Company, as well as those risks and
uncertainties described in the Company's Annual Report on Form 10-K
for the fiscal year ended March 31, 2011, which is available
on the Company's website at www.advisoryboardcompany.com/IR and at
the Securities and Exchange Commission's website at www.sec.gov.
Additional information will also be set forth in the
Company's report on Form 10-Q for the quarter ended
September 30, 2011, which will be filed with the Securities
and Exchange Commission in November 2011.
Accordingly, readers are cautioned not to place undue reliance
on forward-looking statements made in this news release, which
speak only as of the date of this news release, and the Company
does not undertake to update these statements, whether as a result
of circumstances or events that arise after the date they are made,
new information, or otherwise.
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THE ADVISORY
BOARD COMPANY
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UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME
|
|
AND OTHER
OPERATING STATISTICS
|
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Selected
|
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Six Months
Ended
|
|
Selected
|
|
|
|
September
30,
|
|
Growth
|
|
September
30,
|
|
Growth
|
|
|
|
2011
|
|
2010
|
|
Rates
|
|
2011
|
|
2010
|
|
Rates
|
|
Statements of
Income
|
|
|
|
|
|
|
|
|
|
|
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Revenue
|
$
92,931
|
|
$
71,102
|
|
30.7%
|
|
$
174,546
|
|
$ 137,790
|
|
26.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Cost of services (1)
|
52,508
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|
36,914
|
|
|
|
97,998
|
|
71,859
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|
|
|
Member relations and marketing
(1)
|
18,518
|
|
16,053
|
|
|
|
36,498
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|
31,253
|
|
|
|
General and administrative
(1)
|
11,886
|
|
9,659
|
|
|
|
22,709
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|
17,880
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|
|
|
Depreciation and
amortization
|
2,143
|
|
1,433
|
|
|
|
4,068
|
|
2,810
|
|
|
|
|
Income from
operations
|
7,876
|
|
7,043
|
|
|
|
13,273
|
|
13,988
|
|
|
|
Other income, net
|
448
|
|
577
|
|
|
|
1,245
|
|
798
|
|
|
|
|
Income before provision for
income taxes
|
8,324
|
|
7,620
|
|
|
|
14,518
|
|
14,786
|
|
|
|
Provision for income
taxes
|
(3,121)
|
|
(2,736)
|
|
|
|
(5,444)
|
|
(5,309)
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|
|
|
|
Net income
|
$
5,203
|
|
$
4,884
|
|
|
|
$
9,074
|
|
$
9,477
|
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|
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|
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|
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Earnings per share
|
|
|
|
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|
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Basic
|
$
0.32
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|
$
0.31
|
|
|
|
$
0.56
|
|
$
0.61
|
|
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Diluted
|
$
0.30
|
|
$
0.30
|
|
|
|
$
0.53
|
|
$
0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
16,298
|
|
15,644
|
|
|
|
16,208
|
|
15,596
|
|
|
|
|
Diluted
|
17,183
|
|
16,317
|
|
|
|
17,041
|
|
16,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract Value (at end of
period)
|
$
369,102
|
|
$
284,689
|
|
29.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Percentages of
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services (1)
|
56.5%
|
|
51.9%
|
|
|
|
56.1%
|
|
52.2%
|
|
|
|
Member relations and marketing
(1)
|
19.9%
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|
22.6%
|
|
|
|
20.9%
|
|
22.7%
|
|
|
|
General and administrative
(1)
|
12.8%
|
|
13.6%
|
|
|
|
13.0%
|
|
13.0%
|
|
|
|
Depreciation and
amortization
|
2.3%
|
|
2.0%
|
|
|
|
2.3%
|
|
2.0%
|
|
|
|
Income from
operations
|
8.5%
|
|
9.9%
|
|
|
|
7.6%
|
|
10.2%
|
|
|
|
Net income
|
5.6%
|
|
6.9%
|
|
|
|
5.2%
|
|
6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) During the three and six
months ended September 30, 2011, the Company recognized
approximately $0.8 million and $1.7 million in cost of services,
approximately $0.5 million and $1.0 million in member relations and
marketing, and approximately $1.4 million and $2.8 million in
general and administrative expense for share-based compensation.
During the three and six months ended September 30, 2010, the
Company recognized approximately $0.7 million and $1.4 million in
cost of services, approximately $0.5 million and $0.9 million in
member relations and marketing, and approximately $1.3 million and
$2.5 million in general and administrative expense for share-based
compensation. The Company has recorded all these expenses in
the same line items as other compensation paid to the relevant
categories of employees.
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|
|
|
|
|
|
|
|
|
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THE ADVISORY
BOARD COMPANY
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
September
30
|
|
March
31,
|
|
|
|
2011
|
|
2011
|
|
|
|
(unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
36,303
|
|
$
30,378
|
|
Marketable
securities
|
|
2,767
|
|
-
|
|
Membership fees
receivable, net
|
|
234,512
|
|
179,162
|
|
Prepaid expenses and other
current assets
|
|
6,805
|
|
7,069
|
|
Deferred income taxes,
net
|
|
6,269
|
|
5,894
|
|
Total current
assets
|
|
286,656
|
|
222,503
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
38,985
|
|
29,529
|
|
Intangible assets,
net
|
|
26,832
|
|
18,450
|
|
Goodwill
|
|
76,261
|
|
67,155
|
|
Deferred incentive compensation
and other charges
|
|
57,216
|
|
46,226
|
|
Deferred income taxes, net of
current portion
|
|
8,357
|
|
9,646
|
|
Investment in unconsolidated
entity
|
|
10,000
|
|
-
|
|
Other non-current
assets
|
|
11,500
|
|
11,500
|
|
Marketable securities
|
|
82,625
|
|
86,179
|
|
Total assets
|
|
$
598,432
|
|
$
491,188
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Deferred
revenues
|
|
$
272,811
|
|
$
223,876
|
|
Accounts payable and
accrued liabilities
|
|
68,770
|
|
51,957
|
|
Accrued incentive
compensation
|
|
9,980
|
|
13,609
|
|
Total current
liabilities
|
|
351,561
|
|
289,442
|
|
|
|
|
|
|
|
Long-term deferred
revenues
|
|
56,703
|
|
42,139
|
|
Other long-term
liabilities
|
|
17,455
|
|
11,015
|
|
Total
liabilities
|
|
425,719
|
|
342,596
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock
|
|
230
|
|
225
|
|
Additional paid-in
capital
|
|
285,281
|
|
267,242
|
|
Retained
earnings
|
|
173,523
|
|
164,449
|
|
Accumulated elements of
comprehensive income
|
|
1,556
|
|
(120)
|
|
Treasury stock
|
|
(287,877)
|
|
(283,204)
|
|
Total stockholders'
equity
|
|
172,713
|
|
148,592
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
598,432
|
|
$
491,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE ADVISORY
BOARD COMPANY
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Six Months
Ended September 30,
|
|
|
|
2011
|
|
2010
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
Net income
|
|
$
9,074
|
|
$
9,477
|
|
Adjustments to reconcile
net income to net cash provided by
|
|
|
|
|
|
operating activities:
|
|
|
|
|
|
Depreciation
|
|
4,068
|
|
2,810
|
|
Amortization of intangible
assets
|
|
2,734
|
|
2,442
|
|
Deferred income
taxes
|
|
10
|
|
(424)
|
|
Excess tax benefits from
stock-based payments
|
|
(578)
|
|
(1,360)
|
|
Stock-based compensation
expense
|
|
5,526
|
|
4,791
|
|
Amortization of marketable
securities premiums
|
|
528
|
|
152
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Member fees
receivable
|
|
(53,435)
|
|
(1,677)
|
|
Prepaid expenses and other
current assets
|
|
863
|
|
(1,253)
|
|
Deferred incentive
compensation and other charges
|
|
(10,990)
|
|
3,126
|
|
Deferred
revenues
|
|
62,902
|
|
6,699
|
|
Accounts payable and
accrued liabilities
|
|
16,348
|
|
(13,239)
|
|
Accrued incentive
compensation
|
|
(3,629)
|
|
(6,293)
|
|
Other long-term
liabilities
|
|
3,540
|
|
3,792
|
|
Net cash flows provided by
operating activities
|
|
36,961
|
|
9,043
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
Purchases of property and
equipment
|
|
(13,524)
|
|
(2,827)
|
|
Capitalized software
development costs
|
|
(1,366)
|
|
(941)
|
|
Cash paid for
acquisitions, net of cash acquired
|
|
(16,829)
|
|
(36,012)
|
|
Redemption of marketable
securities
|
|
11,000
|
|
16,751
|
|
Purchases of marketable
securities
|
|
(8,157)
|
|
(18,757)
|
|
Other investing
activities
|
|
(10,000)
|
|
-
|
|
Net cash flows used in
investing activities
|
|
(38,876)
|
|
(41,786)
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
Proceeds on issuance of
stock from exercise of stock options
|
|
13,091
|
|
7,930
|
|
Repurchase of shares to
satisfy minimum employee tax withholding
|
|
(1,266)
|
|
(616)
|
|
Proceeds on issuance of
stock under employee stock purchase plan
|
110
|
|
91
|
|
Excess tax benefits from
share-based compensation arrangements
|
|
578
|
|
1,360
|
|
Purchases of treasury
stock
|
|
(4,673)
|
|
(4,500)
|
|
Net cash flows provided by
financing activities
|
|
7,840
|
|
4,265
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
and cash equivalents
|
|
5,925
|
|
(28,478)
|
|
Cash and cash equivalents,
beginning of period
|
|
30,378
|
|
61,238
|
|
Cash and cash equivalents, end
of period
|
|
$
36,303
|
|
$
32,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE The Advisory Board Company