Two-Year Change Program Announced
Fourth-Quarter Highlights
IFRS revenues and organic revenues up 2%
"Big 3" revenues up 4%; organic revenues up 5%
IFRS operating profit up 343%
Adjusted EBITDA up 33%; adjusted EBITDA margin of
32.5%
Accelerating to 3.0: Two Powerful Levers to Drive
Both Growth & Efficiencies
Holding Company to Operating Company
Content Provider to Content-Driven Technology
Company
2021-2023 Outlook Provided*
Organic revenue growth of 5% - 6% in 2023
Adjusted EBITDA margin of 38% - 40% in 2023
Free cash flow of $1.8 billion
- $2.0 billion in 2023
Investment of $500 million -
$600 million (2021 &
2022)
TORONTO, Feb. 23, 2021 /PRNewswire/ -- Thomson
Reuters (TSX/NYSE: TRI) today reported results for the fourth
quarter and full year ended December 31,
2020. The company also announced a two-year Change Program,
provided a financial outlook for the next three years and announced
a $0.10 increase in its annualized
common share dividend.
"We are very pleased with our results for the fourth quarter and
the full year. We began 2020 with optimism and momentum as our
sales, revenue growth and profitability were accelerating. Despite
challenges from the ongoing COVID-19 pandemic, our 2020
performance reaffirmed the resilience of our markets and businesses
and enabled us to meet or exceed each of the financial
guidance metrics we provided throughout the year. We are confident
that we can build on this performance in 2021 and in future years,"
said Steve Hasker, President and CEO
of Thomson Reuters.
Mr. Hasker added, "This morning, we also announced a two-year
Change Program that will transition Thomson Reuters from a holding
company to an operating company and from a content provider to a
content-driven technology company. We are fortunate to begin this
program from a position of strength with growing Legal, Tax &
Accounting and Government businesses operating in healthy and
evolving markets. Prevailing tailwinds are favorable and play
to our strengths. COVID-19 has changed how, when and where
professionals work. Their need for trusted, authoritative
'always-on' actionable content combined with unique data,
AI/machine learning and software will only increase – a real
opportunity for us to better serve our customers.
This is an organic growth program, and our experienced team has
begun to execute with urgency and rigor. Upon completion, I am
confident Thomson Reuters will be a far more streamlined,
integrated and agile operating company, and will deliver a
best-in-class customer experience, which will drive strong
operating and financial results and greater value for our customers
and shareholders."
* The company's outlook reflects non-IFRS financial measures and
forward-looking statements and should be read in conjunction with
the sections of this news release entitled "Thomson Reuters
Change Program and Outlook," "Non-IFRS Financial Measures" and
"Special Note Regarding Forward-Looking Statements, Material Risks
and Material Assumptions".
Consolidated Financial Highlights - Three Months Ended
December 31
Three Months Ended
December 31,
(Millions of U.S.
dollars, except for adjusted EBITDA margin and EPS)
(unaudited)
|
IFRS Financial
Measures(1)
|
2020
|
2019
|
Change
|
Change at
Constant
Currency
|
Revenues
|
$1,616
|
$1,583
|
2%
|
|
Operating
profit
|
$956
|
$216
|
343%
|
|
Diluted earnings per
share (EPS)
|
$1.13
|
$2.64
|
-57%
|
|
Cash flow from
operations
|
$566
|
$355
|
60%
|
|
Non-IFRS Financial
Measures(1)
|
|
|
|
|
Revenues
|
$1,616
|
$1,583
|
2%
|
2%
|
Adjusted
EBITDA
|
$525
|
$396
|
33%
|
32%
|
Adjusted EBITDA
margin
|
32.5%
|
25.0%
|
750bp
|
730bp
|
Adjusted
EPS
|
$0.54
|
$0.37
|
46%
|
43%
|
Free cash
flow
|
$449
|
$209
|
114%
|
|
(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. These and other non-IFRS financial measures
are defined and
reconciled
to the most directly comparable IFRS measures in the tables
appended to this news release.
|
Revenues increased 2% as growth in recurring revenues
more than offset declines in transactions and Global Print
revenues. Foreign currency had no impact on revenue growth in the
quarter.
- Organic revenues also increased 2% driven by 5% growth in
recurring revenues, which comprised 80% of total revenues.
- The company's "Big 3" segments (Legal Professionals, Corporates
and Tax & Accounting Professionals), which collectively
comprised 79% of total revenues, reported organic revenue growth of
5%.
Operating profit increased due to a significant gain from
the sale of an investment, a gain from an amendment to a pension
plan and lower costs, in addition to higher revenues. Lower
costs reflected the completion of the repositioning of the company
in 2019 following the separation from its former Financial &
Risk (F&R) business, which is now the Refinitiv business of
London Stock Exchange Group (LSEG).
- Adjusted EBITDA, which excludes the gains from the sale
of the investment and the pension plan amendment, among other
items, increased 33% due to lower costs and higher revenues. The
related margin increased to 32.5% from 25.0% in the prior-year
period.
Diluted EPS decreased to $1.13 per share from $2.64 per share in the prior-year period, as the
prior-year period included a $1.2
billion non-cash deferred tax benefit associated with the
reorganization of certain foreign operations.
- Adjusted EPS, which excludes the tax benefit as well as
other adjustments, increased to $0.54
per share from $0.37 per share in the
prior-year period due to higher adjusted EBITDA, which was partly
offset by higher income tax expense.
Cash flow from operations increased primarily because the
prior-year period included significantly higher costs and
investments to reposition the company following the separation from
Refinitiv and higher tax payments.
- Free cash flow was strong in the quarter at $449 million, with the increase primarily due to
higher cash flow from operations.
Highlights by Customer Segment - Three Months Ended
December 31
(Millions of U.S.
dollars, except for adjusted EBITDA margins)
(unaudited)
|
|
|
Three Months
Ended
|
|
|
|
|
December
31,
|
|
Change
|
|
|
2020
|
2019(1)
|
|
Total
|
Constant
Currency
|
Organic(2)
|
Revenues
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$653
|
$621
|
|
5%
|
5%
|
4%
|
Corporates
|
|
338
|
328
|
|
3%
|
4%
|
3%
|
Tax &
Accounting Professionals
|
|
285
|
274
|
|
4%
|
6%
|
8%
|
"Big 3" Segments
Combined
|
|
1,276
|
1,223
|
|
4%
|
5%
|
5%
|
Reuters
News
|
|
164
|
164
|
|
0%
|
-1%
|
-3%
|
Global
Print
|
|
177
|
196
|
|
-10%
|
-10%
|
-10%
|
Eliminations/Rounding
|
|
(1)
|
-
|
|
|
|
|
Revenues
|
|
$1,616
|
$1,583
|
|
2%
|
2%
|
2%
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$245
|
$215
|
|
14%
|
13%
|
|
Corporates
|
|
105
|
98
|
|
7%
|
6%
|
|
Tax &
Accounting Professionals
|
|
145
|
134
|
|
9%
|
10%
|
|
"Big 3" Segments
Combined
|
|
495
|
447
|
|
11%
|
11%
|
|
Reuters
News
|
|
6
|
10
|
|
-41%
|
-34%
|
|
Global
Print
|
|
61
|
77
|
|
-21%
|
-22%
|
|
Corporate
costs
|
|
(37)
|
(138)
|
|
n/a
|
n/a
|
|
Adjusted
EBITDA
|
|
$525
|
$396
|
|
33%
|
32%
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
37.5%
|
34.5%
|
|
300bp
|
270bp
|
|
Corporates
|
|
31.1%
|
30.0%
|
|
110bp
|
70bp
|
|
Tax &
Accounting Professionals
|
|
51.1%
|
48.7%
|
|
240bp
|
200bp
|
|
"Big 3" Segments
Combined
|
|
38.8%
|
36.5%
|
|
230bp
|
210bp
|
|
Reuters
News
|
|
3.9%
|
6.5%
|
|
-260bp
|
-240bp
|
|
Global
Print
|
|
34.6%
|
39.4%
|
|
-480bp
|
-530bp
|
|
Corporate
costs
|
|
n/a
|
n/a
|
|
n/a
|
n/a
|
|
Adjusted EBITDA
margin
|
|
32.5%
|
25.0%
|
|
750bp
|
730bp
|
|
|
|
|
|
|
|
|
|
n/a: not
applicable
(1) For
comparative purposes, 2019 segment results have been adjusted to
reflect the current period presentation. For additional
information, see the "Adjustments to Prior-Period Segment Results"
section of this news release.
(2) Computed for
revenue growth only.
|
|
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 increased 5% (4% organic) to $653 million.
- Recurring revenues grew 6% (93% of total), driven by organic
revenue growth of 5% with strong performance from Practical Law,
Westlaw Edge, the segment's businesses in Europe and Canada and its Government business.
- Transactions revenues declined 5% (7% of total), primarily due
to the Elite business. Transactions revenues declined 6%
organically.
Adjusted EBITDA increased 14% to $245 million.
- The margin increased to 37.5% from 34.5%, primarily due to
higher revenues.
Corporates
Revenues increased 4% (3% organic) to $338 million.
- Recurring revenues grew 6% (87% of total), all organic.
- Transactions revenues declined 11% (13% of total), primarily
due to lower software implementation revenues.
Adjusted EBITDA increased 7% to $105 million.
- The margin increased to 31.1% from 30.0%, primarily due to
higher revenues.
Tax & Accounting Professionals
Revenues of $285
million increased 6% (8% organic), primarily due to strong
recurring revenue growth of 7%, which included a 2% benefit from
the accelerated release of some UltraTax state tax software from
January to December to align with the traditional December release
of the segment's US Federal Government software. Excluding this
timing benefit, organic revenues were up 5%. Revenue growth was
negatively impacted by the loss of revenues from the Aumentum
government business, which was sold in November 2019.
- Recurring revenues grew 7% (89% of total), driven by organic
revenue growth of 9%, and were slightly offset by the loss of
revenues from the sale of the Aumentum government business.
- Transactions revenues declined 4% (11% of total), primarily due
to lower software implementation revenues.
Adjusted EBITDA grew 9% to $145 million.
- The margin increased to 51.1% from 48.7%, primarily due to
higher revenues.
- 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 $164
million decreased 1% and organic revenues
decreased 3%, primarily due to lower revenues in the news agency
business and the cancellation of in-person conferences at Reuters
Events due to COVID-19.
- Reuters Events is assessing if and when in-person conferences
can resume in 2021. As a result, the business is preparing a hybrid
events strategy that can accommodate both in-person and virtual
options.
Adjusted EBITDA was $6
million, down $4 million from
the prior-year period, primarily due to non-recurring costs
incurred in the quarter.
Global Print
Revenues decreased 10% to $177 million, as expected. An improvement in
Global Print's 2021 performance is expected, with revenues forecast
to decline between 4%-7%.
Adjusted EBITDA decreased 21% to $61
million.
- The margin decreased from 39.4% to 34.6% due to the decline in
revenues.
Corporate Costs
Corporate costs at the adjusted EBITDA level were
$37 million compared to $138 million in the prior-year period. The
decline primarily reflected the completion of the repositioning of
the company in 2019 following the separation of Refinitiv, which
required significant costs and investments.
Consolidated Financial Highlights – Year Ended December 31
Year Ended
December 31,
(Millions of U.S.
dollars, except for adjusted EBITDA margin and EPS)
(unaudited)
|
IFRS Financial
Measures(1)
|
2020
|
2019
|
Change
|
Change at
Constant
Currency
|
Revenues
|
$5,984
|
$5,906
|
1%
|
|
Operating
profit
|
$1,929
|
$1,199
|
61%
|
|
Diluted
EPS
|
$2.25
|
$3.11
|
-28%
|
|
Cash flow from
operations
|
$1,745
|
$702
|
148%
|
|
Non-IFRS Financial
Measures(1)
|
|
|
|
|
Revenues
|
$5,984
|
$5,906
|
1%
|
2%
|
Adjusted
EBITDA
|
$1,975
|
$1,493
|
32%
|
32%
|
Adjusted EBITDA
margin
|
33.0%
|
25.3%
|
770bp
|
760bp
|
Adjusted
EPS
|
$1.85
|
$1.29
|
43%
|
43%
|
Free cash
flow
|
$1,330
|
$159
|
735%
|
|
(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. These and
other non-IFRS financial measures are defined and
reconciled
to the
most directly comparable IFRS measures in the tables appended to
this news release.
|
Revenues increased 1%, as growth in recurring revenues
more than offset a decline in Global Print revenues and a negative
impact from foreign currency that reduced revenues by $44 million (approximately 1%).
- Organic revenues increased 1%, driven by 4% growth in recurring
revenues, which comprised 80% of total revenues.
- The company's "Big 3" segments, which collectively comprised
approximately 79% of total revenues, reported organic revenue
growth of 4%.
Operating profit increased 61%, primarily due to a
significant gain from the sale of an investment, lower costs and
higher revenues.
- Adjusted EBITDA, which excludes the gain on sale of the
investment, among other items, increased 32% primarily due to lower
costs and higher revenues. The related margin increased to 33.0%
from 25.3% in the prior year. Lower costs reflected the completion
of the repositioning of the company in 2019 following the
separation from Refinitiv, which required significant costs and
investments in the prior year, and lower expenses from the
company's COVID-19-related cost mitigation efforts.
Diluted EPS decreased to $2.25 per share from $3.11 per share in the prior year, as the prior
year included a $1.2 billion non-cash
deferred tax benefit associated with the reorganization of certain
foreign operations.
- Adjusted EPS, which excludes the tax benefit, as well as
other adjustments, increased to $1.85
per share from $1.29 per share in the
prior year primarily due to higher adjusted EBITDA, which was
partly offset by higher income tax and depreciation and software
amortization expense.
Cash flow from operations increased primarily because the
prior year included a $167 million
pension contribution, as well as significantly higher costs and
investments to reposition the company following the separation from
Refinitiv. In 2020, cash flow benefited from savings related to the
company's COVID-19-related cost mitigation efforts and lower income
tax payments.
- Free cash flow for the full year was strong at
$1.3 billion, which reflected higher
cash flow from operations and the resilience of the company's
businesses and markets.
Highlights by Customer Segment – Year Ended December 31
(Millions of U.S.
dollars, except for adjusted EBITDA margins)
(unaudited)
|
|
|
Year
Ended
|
|
|
|
|
|
|
December
31,
|
|
Change
|
|
|
2020
|
2019(1)
|
|
Total
|
Constant
Currency
|
Organic(2)
|
Revenues
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$2,535
|
$2,433
|
|
4%
|
4%
|
3%
|
Corporates
|
|
1,367
|
1,308
|
|
5%
|
5%
|
5%
|
Tax &
Accounting Professionals
|
|
836
|
843
|
|
-1%
|
2%
|
4%
|
"Big 3" Segments
Combined
|
|
4,738
|
4,584
|
|
3%
|
4%
|
4%
|
Reuters
News
|
|
628
|
630
|
|
0%
|
0%
|
-5%
|
Global
Print
|
|
620
|
693
|
|
-11%
|
-10%
|
-10%
|
Eliminations/Rounding
|
|
(2)
|
(1)
|
|
|
|
|
Revenues
|
|
$5,984
|
$5,906
|
|
1%
|
2%
|
1%
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$1,001
|
$895
|
|
12%
|
12%
|
|
Corporates
|
|
460
|
412
|
|
12%
|
11%
|
|
Tax &
Accounting Professionals
|
|
330
|
318
|
|
4%
|
6%
|
|
"Big 3" Segments
Combined
|
|
1,791
|
1,625
|
|
10%
|
10%
|
|
Reuters
News
|
|
73
|
68
|
|
7%
|
-1%
|
|
Global
Print
|
|
242
|
294
|
|
-18%
|
-18%
|
|
Corporate
costs
|
|
(131)
|
(494)
|
|
n/a
|
n/a
|
|
Adjusted
EBITDA
|
|
$1,975
|
$1,493
|
|
32%
|
32%
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
39.5%
|
36.8%
|
|
270bp
|
250bp
|
|
Corporates
|
|
33.7%
|
31.5%
|
|
220bp
|
180bp
|
|
Tax &
Accounting Professionals
|
|
39.5%
|
37.6%
|
|
190bp
|
160bp
|
|
"Big 3" Segments
Combined
|
|
37.8%
|
35.4%
|
|
240bp
|
210bp
|
|
Reuters
News
|
|
11.7%
|
10.9%
|
|
80bp
|
-10bp
|
|
Global
Print
|
|
39.0%
|
42.5%
|
|
-350bp
|
-390bp
|
|
Corporate
costs
|
|
n/a
|
n/a
|
|
n/a
|
n/a
|
|
Adjusted EBITDA
margin
|
|
33.0%
|
25.3%
|
|
770bp
|
760bp
|
|
|
|
|
|
|
|
n/a: not
applicable
(1) For
comparative purposes, 2019 segment results have been adjusted to
reflect the current period presentation. For additional
information, see the "Adjustments to Prior-Period Segment Results"
section of this news release.
(2) Computed for
revenue growth only.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thomson Reuters Change Program and Outlook
The company also announced a new two-year Change Program to
transition from a holding company to an operating company and from
a content provider to a content-driven technology company. The
program is expected to take 24 months (2021-2022) to largely
complete and is projected to require an investment of between
$500 million and $600 million during the course of that time. In
2023, the program is forecast to:
- Achieve organic revenue growth of 5% - 6% including additional
annual revenues of $100 million;
- Achieve an Adjusted EBITDA margin of 38% - 40%;
- Achieve free cash flow of $1.8
billion - $2.0 billion;
- Achieve annual operating expense savings of $600 million, of which $200 million is expected to be reinvested in
growth initiatives; and
- Reduce capital expenditures as a percentage of revenue to
between 6.0% and 6.5%.
The company's outlook for 2021, 2022 and 2023 incorporates the
forecasted impacts associated with the Change Program; assumes
constant currency rates; and excludes the impact of any future
acquisitions or dispositions that may occur during those periods.
Thomson Reuters believes that this type of guidance provides useful
insight into the performance of its businesses.
While the company's fourth-quarter 2020 performance provides it
with increasing confidence about its outlook, the global economy
continues to experience substantial disruption due to concerns
regarding the spread of COVID-19, as well as from the measures
intended to mitigate its impact. Any worsening of the global
economic or business environment could impact the company's ability
to achieve its outlook.
First-Quarter 2021 Outlook
Total company revenues and total organic revenues for the first
quarter of 2021 are expected to increase between 1.5% and 2.5%,
primarily impacted by a decline in Global Print revenue of between
13% and 15%.
The Big 3 total revenue growth and organic revenue growth in the
first quarter is forecast to range between 4% and 5%.
Global Print revenues are expected to decline between 4% and 7%
in the full year.
2021 - 2023 Outlook
Total Thomson
Reuters
|
2020
Reported
|
2021
Outlook
|
2022
Outlook
|
2023
Outlook
|
Total Revenue
Growth
|
1.3%
|
3.0% -
4.0%
|
4.0% -
5.0%
|
5.0% -
6.0%
|
Organic Revenue
Growth
|
1.2%
|
3.0% -
4.0%
|
4.0% -
5.0%
|
5.0% -
6.0%
|
Adjusted EBITDA
Margin
|
33.0%
|
30% - 31%
|
34% - 35%
|
38% – 40%
|
Corporate
Costs
Core Corporate
Costs
Change Program Operating
Expenses
|
$131
million
|
$305 - $340
million
$130 - $140
million
$175 - $200
million
|
$245 - $280
million
$120 - $130
million
$125 - $150
million
|
$110 - $120
million
$110 - $120
million
$0
|
Free Cash
Flow
|
$1.3
billion
|
$1.0 - $1.1
billion
|
$1.2 - $1.3
billion
|
$1.8 - $2.0
billion
|
Capital Expenditures
- % of Revenue
Change Program Capital
Expenditures
|
8.4%
|
9.0% -
9.5%
$125 - $150
million
|
7.5% -
8.0%
$75 - $100
million
|
6.0% -
6.5%
$0
|
Depreciation &
Amortization of
Computer
Software
|
$669
million
|
$650 - $675
million
|
$620 - $645
million
|
$580 - $605
million
|
Interest Expense
(P&L)
|
$195
million
|
$190 - $210
million
|
$190 - $210
million
|
$190 - $210
million
|
Effective Tax Rate on
Adjusted Earnings
|
16.9%
|
16% - 18%
|
n/a
|
n/a
|
|
|
|
|
|
Big
3
|
2020
Reported
|
2021
Outlook
|
2022
Outlook
|
2023
Outlook
|
Total Revenue
Growth
|
3.4%
|
4.5% -
5.5%
|
5.5% -
6.5%
|
6.0% -
7.0%
|
Organic Revenue
Growth
|
3.8%
|
4.5% -
5.5%
|
5.5% -
6.5%
|
6.0% -
7.0%
|
Adjusted EBITDA
Margin
|
37.8%
|
38% - 39%
|
41% - 42%
|
43% - 45%
|
The information in this section is
forward-looking. Actual results, which include the
impact of currency and future acquisitions and dispositions
completed during 2021, 2022 and 2023, may differ materially from
the company's outlook. Some of
the forward-looking financial measures in the
outlook above are provided on a non-IFRS basis. See the section
below entitled "Non-IFRS Financial Measures" for more information.
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."
COVID-19 Update
Thomson Reuters has not experienced any significant disruptions
to its business and continues to be fully operational. Most
employees continue to work remotely from their homes, enabled by
technology that allows them to collaborate with customers and each
other. Essential employees who cannot work from home, such as
Reuters News journalists and those working in the company's Global
Print facilities, follow various health and safety standards. While
the company cancelled or postponed nearly all in-person
conferences, primarily in its Reuters Events business, many of
these events were replaced with virtual meetings. The company
continues to act based on guidance from global health
organizations, relevant governments and evolving best
practices.
The company has approximately 500,000 customers that are largely
comprised of legal and tax professionals in corporations and
professional service firms, many of whom are also working remotely.
The company's products enable its customers to remain productive
while they work remotely because they can access most Thomson
Reuters products and services through the Internet.
The company continues to believe it is well positioned to
weather the economic crisis because its business is supported by a
solid financial foundation with access to liquidity resources that
it believes are adequate to support it through a gradual
recovery. Thomson Reuters principal sources of liquidity
continue to be cash on hand, cash provided by its operations, its
$1.8 billion syndicated credit
facility and its $1.8 billion
commercial paper program. From time to time, the company also
issues debt securities under a prospectus. As set forth in its
full-year 2021 outlook, the company expects to generate between
$1.0 billion and $1.1 billion of free cash flow this year. As of
December 31, 2020, Thomson Reuters
had $1.8 billion of cash and cash
equivalents on hand, and none of its debt securities are scheduled
to mature until 2023.
Dividends and Share Repurchases
The company announced today that its Board of Directors approved
a $0.10 per share annualized increase
in the dividend to $1.62 per common
share, representing the 28th consecutive year of
dividend increases. A quarterly dividend of $0.405 per share is payable on March 17, 2021 to common shareholders of record
as of March 5, 2021.
The company also announced today that it recently completed the
repurchase of $200 million of its
common shares under its normal course issuer bid (NCIB), which
began in January 2021. Thomson
Reuters does not currently intend to repurchase additional shares
in 2021. Thomson Reuters has set a target to maintain approximately
500 million common shares outstanding by using share repurchases to
offset dilution associated with its dividend reinvestment and
equity incentive plans.
Sale of Refinitiv to London Stock Exchange Group
(LSEG)
On January 29, 2021, Thomson
Reuters and private equity funds affiliated with
Blackstone closed the sale of Refinitiv to LSEG in
an all-share transaction. A majority interest in Refinitiv was
previously sold to Blackstone's consortium
in October 2018. Thomson Reuters and Blackstone's
consortium subsequently agreed to sell Refinitiv to
LSEG in August 2019.
Thomson Reuters now indirectly owns approximately 82.5
million LSEG shares, which have a market value of
approximately $11.2 billion based on LSEG's closing
share price on February 22, 2021. Thomson Reuters
interest in LSEG shares are held through an entity jointly owned by
Blackstone's consortium and Thomson Reuters.
While Thomson Reuters expects that the LSEG transaction will be
predominantly tax deferred, approximately $700 million of
tax became payable when the deal closed. As permitted
under a transaction agreement, Thomson
Reuters plans to sell approximately $1
billion of its LSEG shares to generate
approximately $750 million of total net proceeds, but the
company does not plan to sell any LSEG shares prior to LSEG's
announcement of its full-year 2020 results on March 5, 2021. Subject to certain
exceptions, Thomson Reuters and Blackstone's
consortium have otherwise agreed to be subject to a
lock-up for their LSEG shares until January 29, 2023. In each of the three and four
years following the closing (starting on January 30, 2023 and January 30, 2024, respectively), Thomson Reuters
and Blackstone's consortium will become entitled to sell in
aggregate one-third of the LSEG shares issued to them. The lock-up
arrangement will terminate on January
29, 2025.
Reuters News' 30-year agreement to supply news and
editorial content to Refinitiv continues under the same terms and
conditions after the closing and is scheduled to run to
2048.
Thomson Reuters financial results for the fourth quarter and
full-year 2020 (which reflect periods prior to the closing of the
sale of Refinitiv to LSEG) include its share of post-tax losses
from its previous 45% interest in Refinitiv, which was then
considered an equity method investment, in its net earnings. For
purposes of those financial results, Thomson Reuters removed these
amounts from its non-IFRS calculation of adjusted EPS.
Refinitiv achieved its targeted run-rate cost savings of
$650 million as of December 31, 2020. Additional information
regarding Refinitiv's financial results is provided in the appendix
to this news release.
Thomson Reuters
Thomson Reuters is a leading provider of business information
services. Our products include highly specialized
information-enabled software and tools for legal, tax, accounting
and compliance professionals combined with the world's most global
news service – Reuters. For more information on Thomson Reuters,
visit tr.com and for the latest world news,
reuters.com.
NON-IFRS FINANCIAL MEASURES
Thomson Reuters prepares its financial statements in
accordance with International Financial Reporting Standards (IFRS),
as issued by the International Accounting Standards Board
(IASB).
This news release includes certain non-IFRS financial
measures, such as adjusted EBITDA and the related margin (other
than at the customer segment level), net debt to adjusted EBITDA
leverage ratio, free cash flow, adjusted EPS, selected measures
excluding the impact of foreign currency, and changes in revenues
computed on an organic basis. Thomson Reuters uses these non-IFRS
financial measures as supplemental indicators of its operating
performance and financial position. These measures do not have any
standardized meanings prescribed by IFRS and therefore are unlikely
to be comparable to the calculation of similar measures used by
other companies, and should not be viewed as alternatives to
measures of financial performance calculated in accordance with
IFRS. Non-IFRS financial measures are defined and reconciled to the
most directly comparable IFRS measures in the appended
tables.
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 comparable IFRS
measures because it cannot predict, with reasonable certainty, the
2021, 2022 and 2023 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.
Additionally, the company cannot reasonably predict 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.
ADJUSTMENTS TO PRIOR-PERIOD SEGMENT RESULTS
In the first quarter of 2020, the company reassessed its
methodology for allocating costs to its business segments and
adjusted its allocations in connection with the completion of the
repositioning of its businesses in 2019 after the separation of
Refinitiv. The company adjusted its prior-period segment amounts to
reflect the current presentation. The 2019 segment amounts were
also adjusted to reflect the transfer of certain revenues among the
segments to where they are better aligned. These changes impacted
the 2019 financial results of the segments but did not change the
consolidated 2019 financial results. The table below summarizes the
changes:
|
Three Months
Ended
December 31,
2019
|
|
Year
Ended
December 31,
2019
|
|
|
(millions of U.S.
dollars)
|
As
Reported
|
Adjustments
|
As
Revised
|
|
As
Reported
|
Adjustments
|
As
Revised
|
|
Revenues
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
$617
|
$4
|
$621
|
|
$2,419
|
$14
|
$2,433
|
|
Corporates
|
331
|
(3)
|
328
|
|
1,321
|
(13)
|
1,308
|
|
Tax & Accounting
Professionals
|
274
|
-
|
274
|
|
844
|
(1)
|
843
|
|
Reuters
News
|
164
|
-
|
164
|
|
630
|
-
|
630
|
|
Global
Print
|
196
|
-
|
196
|
|
693
|
-
|
693
|
|
Eliminations/Rounding
|
1
|
(1)
|
-
|
|
(1)
|
-
|
(1)
|
|
Total
revenues
|
$1,583
|
-
|
$1,583
|
|
$5,906
|
-
|
$5,906
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
$215
|
-
|
$215
|
|
$901
|
$(6)
|
$895
|
|
Corporates
|
103
|
$(5)
|
98
|
|
433
|
(21)
|
412
|
|
Tax & Accounting
Professionals
|
135
|
(1)
|
134
|
|
323
|
(5)
|
318
|
|
Reuters
News
|
4
|
6
|
10
|
|
35
|
33
|
68
|
|
Global
Print
|
77
|
-
|
77
|
|
295
|
(1)
|
294
|
|
Corporate
costs
|
(138)
|
-
|
(138)
|
|
(494)
|
-
|
(494)
|
|
Total adjusted
EBITDA
|
$396
|
-
|
$396
|
|
$1,493
|
-
|
$1,493
|
|
|
|
|
|
|
|
|
|
|
|
|
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 "Thomson
Reuters Change Program and Outlook" section, statements regarding
the potential or expected impact of the COVID-19 pandemic on
Thomson Reuters, its customers and the general economy, the
company's expectations regarding Reuters News, Global Print, share
repurchases and its liquidity and capital resources, the
company's expectations regarding the
tax consequences of the LSEG transaction and
its intentions related to future sales of LSEG
shares, 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, including those related to the COVID-19
pandemic, 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. In
particular, the full extent of the impact of the COVID-19 pandemic
on the company's business, operations and financial results will
depend on numerous evolving factors that it may not be able to
accurately 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, uncertainty, downturns and changes in the
markets that the company serves, the ongoing impact of the COVID-19
pandemic on the company's business and risks that the pandemic
could have a longer duration or a more significant impact on
Thomson Reuters than the company currently expects; fraudulent or
unpermitted data access or other cyber-security or privacy
breaches; failures or disruptions of data centers, network systems,
telecommunications, or the Internet; failure to keep pace with
technological developments to provide new products, services,
applications and functionalities to meet customers' needs, attract
new customers and retain existing ones, or expand into new
geographic markets and identify areas of higher growth; inadequate
protection of intellectual property rights; actions of competitors;
failure to adapt to organizational changes and effectively
implement strategic initiatives; failure to attract, motivate and
retain high quality, talented and diverse management and key
employees; failure to derive fully the anticipated benefits from
existing or future acquisitions, joint ventures, investments or
dispositions; failure to meet the challenges involved in operating
globally; failure to maintain a high renewal rate for recurring,
subscription-based services; dependency on third parties for data,
information and other services; impairment of goodwill and other
identifiable intangible assets; changes to law and regulations
related to privacy, data security, data protection and other areas;
tax matters, including changes to tax laws, regulations and
treaties; threat of legal actions and claims; risk of
antitrust/competition-related claims or investigations;
fluctuations in foreign currency exchange and interest rates;
downgrading of credit ratings and adverse conditions in the credit
markets; the effect of factors outside of the control of Thomson
Reuters on funding obligations in respect of pension and
post-retirement benefit arrangements; failure to protect the brands
and reputation of Thomson Reuters; actions or potential actions
that could be taken by the company's principal shareholder, The
Woodbridge Company Limited; and the ability of Thomson
Reuters Founders Share Company to affect the company's governance
and management. Many of the foregoing risks are, and
could be, exacerbated by the COVID-19 pandemic and any
worsening of the global business and economic environment as a
result. 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. Thomson Reuters annual
and quarterly reports are also available in the "Investor
Relations" section of www.thomsonreuters.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 (including those related to the
COVID-19 pandemic), 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, which reflects the global economic crisis caused by the
COVID-19 pandemic. Material assumptions related to the
company's revenue outlook are that there will be improved
global economic conditions throughout 2021 to
2023, despite periods of volatility
due to disruption caused by COVID-19 and the measures intended
to mitigate its impact; there will be a continued need for
trusted products and services that help customers
navigate evolving and complex legal, tax, accounting, regulatory,
geopolitical and commercial changes, developments and environments,
and for cloud-based digital tools that drive productivity; Thomson
Reuters will have a continued ability to deliver innovative
products that meet evolving customer demands; the company
will acquire new customers through expanded and improved digital
platforms, simplification of the product portfolio and through
other sales initiatives; and the company will improve
customer retention through commercial simplification efforts and
customer service improvements. Material assumptions related to the
company's adjusted EBITDA margin outlook are its ability to achieve
revenue growth targets; the company's business mix continues to
shift to higher-growth product offerings; Change Program expenses
are $500 million to $600 million in 2021 and 2022; and Change Program
investments will drive higher adjusted EBITDA margin through higher
revenues and efficiencies by 2023. Material assumptions
related to the company's free cash flow outlook are its ability to
achieve its revenue and adjusted EBITDA margin targets; and capital
expenditures are between the percentages of revenues in 2021, 2022
and 2023 as set forth in the company's
outlook. Material assumptions related to the company's
effective tax rate on adjusted earnings outlook are its ability to
achieve its adjusted EBITDA target; the mix of taxing jurisdictions
where the company recognized pre-tax profit or losses in 2020 does
not significantly change; no unexpected changes in tax laws or
treaties within the jurisdictions where the company operates;
depreciation and amortization of computer software for 2021 as
set forth in the company's outlook; and interest expense for 2021
as set forth in the company's outlook.
Material risks related to the company's revenue outlook are
that business disruptions associated with the COVID-19
pandemic, including government enforced quarantines and
stay-at-home orders, may continue longer than the company expects
or may be interrupted by future outbreaks and resurgences of the
virus, delaying the anticipated recovery of the global economy;
global economic uncertainty due to the COVID-19 pandemic as well as
related regulatory reform and changes in the political environment
may lead to limited business opportunities for the company's
customers, creating significant cost pressures for them and
potentially constraining the number of professionals employed,
which could lead to lower demand for Thomson Reuters products and
services; demand for the company's products and services could be
reduced by changes in customer buying patterns or in its inability
to execute on key product design or customer support initiatives;
competitive pricing actions and product innovation could impact the
company's revenues; and the company's sales, commercial
simplification and product initiatives may be insufficient to
retain customers or generate new sales. Material risks
related to the company's adjusted EBITDA margin outlook are the
same as the risks above related to the revenue outlook; the costs
to execute the Change Program may be higher than current
expectations or the expected benefits by 2023 may be lower than
current expectations; and acquisition and disposal activity may
dilute the company's adjusted EBITDA margin. Material risks related
to the company's free cash flow outlook are the same as the risks
above related to the revenue and adjusted EBITDA margin outlook; a
weaker macroeconomic environment could negatively impact working
capital performance, including the ability of our customers to pay
us; capital expenditures may be higher than currently expected; and
the timing and amount of tax payments to governments may differ
from the company's expectations. Material risks
related to the company's effective tax rate on adjusted earnings
outlook are the same as the risks above related to adjusted EBITDA;
a material change in the geographical mix of the company's pre-tax
profits and losses; a material change in current tax laws or
treaties to which the company is subject, and
did not expect; and depreciation and amortization of computer
software as well as interest expense may be significantly higher or
lower than expected.
The company has provided an Outlook for the purpose of
presenting information about current expectations for 2021, 2022
and 2023. 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, including those related to the COVID-19
pandemic.
CONTACTS
MEDIA
Melissa
Cassar
Head of Commercial
Communications & Corporate Affairs
+1 437 388
3619
melissa.cassar@tr.com
|
INVESTORS
Frank J.
Golden
Head of Investor
Relations
+1 332 219
1111
frank.golden@tr.com
|
Thomson Reuters will webcast a discussion of its
fourth-quarter and full-year 2020 results and its three-year
business outlook today beginning at 8:30
a.m. Eastern Standard Time (EST). You can access the
webcast by visiting ir.thomsonreuters.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
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2020
|
2019
|
|
2020
|
2019
|
CONTINUING
OPERATIONS
|
|
|
|
|
|
Revenues
|
$1,616
|
$1,583
|
|
$5,984
|
$5,906
|
Operating
expenses
|
(1,098)
|
(1,193)
|
|
(3,999)
|
(4,413)
|
Depreciation
|
(40)
|
(44)
|
|
(184)
|
(154)
|
Amortization of
computer software
|
(123)
|
(123)
|
|
(485)
|
(449)
|
Amortization of other
identifiable intangible assets
|
(31)
|
(34)
|
|
(123)
|
(114)
|
Other operating
gains, net
|
632
|
27
|
|
736
|
423
|
Operating
profit
|
956
|
216
|
|
1,929
|
1,199
|
Finance costs,
net:
|
|
|
|
|
|
Net interest
expense
|
(49)
|
(51)
|
|
(195)
|
(163)
|
Other finance (costs)
income
|
(6)
|
(33)
|
|
30
|
(65)
|
Income before tax and
equity method investments
|
901
|
132
|
|
1,764
|
971
|
Share of post-tax
losses in equity method investments
|
(159)
|
(44)
|
|
(544)
|
(599)
|
Tax (expense)
benefit
|
(155)
|
1,233
|
|
(71)
|
1,198
|
Earnings from
continuing operations
|
587
|
1,321
|
|
1,149
|
1,570
|
(Loss) earnings from
discontinued operations, net of tax
|
(25)
|
3
|
|
(27)
|
(6)
|
Net
earnings
|
$562
|
$1,324
|
|
$1,122
|
$1,564
|
Earnings attributable
to common shareholders
|
$562
|
$1,324
|
|
$1,122
|
$1,564
|
|
|
|
|
|
|
Earnings (loss)
per share:
|
|
|
|
|
|
Basic earnings (loss)
per share:
|
|
|
|
|
|
From
continuing operations
|
$1.18
|
$2.64
|
|
$2.31
|
$3.13
|
From
discontinued operations
|
(0.05)
|
0.01
|
|
(0.06)
|
(0.01)
|
Basic earnings per
share
|
$1.13
|
$2.65
|
|
$2.25
|
$3.12
|
|
|
|
|
|
|
Diluted earnings
(loss) per share:
|
|
|
|
|
|
From
continuing operations
|
$1.18
|
$2.63
|
|
$2.30
|
$3.12
|
From
discontinued operations
|
(0.05)
|
0.01
|
|
(0.05)
|
(0.01)
|
Diluted earnings per
share
|
$1.13
|
$2.64
|
|
$2.25
|
$3.11
|
|
|
|
|
|
|
Basic
weighted-average common shares
|
497,372,688
|
499,180,148
|
|
496,722,292
|
500,829,753
|
Diluted
weighted-average common shares
|
498,809,560
|
501,134,127
|
|
498,032,006
|
502,521,200
|
Thomson Reuters
Corporation
Consolidated
Statement of Financial Position
(millions of U.S.
dollars)
(unaudited)
|
|
|
December 31,
|
|
December
31,
|
2020
|
|
2019
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$1,787
|
|
$825
|
Trade and other
receivables
|
1,151
|
|
1,167
|
Other financial
assets
|
612
|
|
533
|
Prepaid expenses and
other current assets
|
425
|
|
546
|
Current
assets
|
3,975
|
|
3,071
|
|
|
|
|
Property and
equipment, net
|
545
|
|
615
|
Computer software,
net
|
830
|
|
900
|
Other identifiable
intangible assets, net
|
3,427
|
|
3,518
|
Goodwill
|
5,976
|
|
5,853
|
Equity method
investments
|
1,136
|
|
1,551
|
Other non-current
assets
|
788
|
|
611
|
Deferred
tax
|
1,204
|
|
1,176
|
Total
assets
|
$17,881
|
|
$17,295
|
|
|
|
|
Liabilities and
equity
|
|
|
|
Liabilities
|
|
|
|
Current
indebtedness
|
-
|
|
$579
|
Payables, accruals
and provisions
|
1,410
|
|
1,373
|
Deferred
revenue
|
866
|
|
833
|
Other financial
liabilities
|
376
|
|
434
|
Current
liabilities
|
2,652
|
|
3,219
|
|
|
|
|
Long-term
indebtedness
|
3,772
|
|
2,676
|
Provisions and other
non-current liabilities
|
1,083
|
|
1,264
|
Deferred
tax
|
394
|
|
576
|
Total
liabilities
|
7,901
|
|
7,735
|
|
|
|
|
Equity
|
|
|
|
Capital
|
5,458
|
|
5,377
|
Retained
earnings
|
5,211
|
|
4,965
|
Accumulated other
comprehensive loss
|
(689)
|
|
(782)
|
Total
equity
|
9,980
|
|
9,560
|
Total liabilities
and equity
|
$17,881
|
|
$17,295
|
Thomson Reuters
Corporation
Consolidated
Statement of Cash Flow
(millions of U.S.
dollars)
(unaudited)
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2020
|
2019
|
|
2020
|
2019
|
Cash provided by
(used in):
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
Earnings from
continuing operations
|
$587
|
$1,321
|
|
$1,149
|
$1,570
|
Adjustments
for:
|
|
|
|
|
|
Depreciation
|
40
|
44
|
|
184
|
154
|
Amortization of
computer software
|
123
|
123
|
|
485
|
449
|
Amortization of other
identifiable intangible assets
|
31
|
34
|
|
123
|
114
|
Net (gains) losses on
disposals of businesses and investments
|
(472)
|
23
|
|
(471)
|
3
|
Deferred
tax
|
(41)
|
(1,250)
|
|
(231)
|
(1,395)
|
Other
|
53
|
65
|
|
421
|
385
|
Pension
contribution
|
-
|
-
|
|
-
|
(167)
|
Changes in working
capital and other items
|
249
|
1
|
|
102
|
(247)
|
Operating cash flows
from continuing operations
|
570
|
361
|
|
1,762
|
866
|
Operating cash flows
from discontinued operations
|
(4)
|
(6)
|
|
(17)
|
(164)
|
Net cash provided by
operating activities
|
566
|
355
|
|
1,745
|
702
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
Acquisitions, net of
cash acquired
|
(2)
|
(177)
|
|
(167)
|
(998)
|
Proceeds from
disposals of businesses and investments, net of taxes
paid
|
366
|
12
|
|
367
|
74
|
Capital
expenditures
|
(100)
|
(140)
|
|
(504)
|
(505)
|
Proceeds from
disposals of property and equipment
|
-
|
7
|
|
162
|
7
|
Other investing
activities
|
2
|
4
|
|
4
|
9
|
Investing cash flows
from continuing operations
|
266
|
(294)
|
|
(138)
|
(1,413)
|
Investing cash flows
from discontinued operations
|
-
|
-
|
|
-
|
29
|
Net cash provided by
(used in) investing activities
|
266
|
(294)
|
|
(138)
|
(1,384)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
Proceeds from
debt
|
-
|
-
|
|
2,019
|
-
|
Repayments of
debt
|
-
|
-
|
|
(1,645)
|
-
|
Net repayments under
short-term loan facilities
|
-
|
-
|
|
(2)
|
-
|
Payments of lease
principal
|
(19)
|
(16)
|
|
(75)
|
(51)
|
Repurchases of common
shares
|
-
|
(200)
|
|
(200)
|
(488)
|
Dividends paid on
preference shares
|
-
|
(1)
|
|
(2)
|
(3)
|
Dividends paid on
common shares
|
(183)
|
(174)
|
|
(730)
|
(698)
|
Other financing
activities
|
1
|
1
|
|
(9)
|
39
|
Net cash used in
financing activities
|
(201)
|
(390)
|
|
(644)
|
(1,201)
|
Increase (decrease)
in cash and bank overdrafts
|
631
|
(329)
|
|
963
|
(1,883)
|
Translation
adjustments
|
4
|
7
|
|
(1)
|
5
|
Cash and bank
overdrafts at beginning of period
|
1,152
|
1,147
|
|
825
|
2,703
|
Cash and bank
overdrafts at end of period
|
$1,787
|
$825
|
|
$1,787
|
$825
|
Cash and bank
overdrafts at end of period comprised of:
|
|
|
|
|
|
Cash and cash
equivalents
|
$1,787
|
$825
|
|
$1,787
|
$825
|
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
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
|
2020
|
2019
|
|
2020
|
2019
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$587
|
$1,321
|
|
$1,149
|
$1,570
|
|
Adjustments to
remove:
|
|
|
|
|
|
|
Tax expense
(benefit)
|
155
|
(1,233)
|
|
71
|
(1,198)
|
|
Other finance costs
(income)
|
6
|
33
|
|
(30)
|
65
|
|
Net interest
expense
|
49
|
51
|
|
195
|
163
|
|
Amortization of other
identifiable intangible assets
|
31
|
34
|
|
123
|
114
|
|
Amortization of
computer software
|
123
|
123
|
|
485
|
449
|
|
Depreciation
|
40
|
44
|
|
184
|
154
|
|
EBITDA
|
$991
|
$373
|
|
$2,177
|
$1,317
|
|
Adjustments to
remove:
|
|
|
|
|
|
|
Share of post-tax
losses in equity method investments
|
159
|
44
|
|
544
|
599
|
|
Other operating gains,
net
|
(632)
|
(27)
|
|
(736)
|
(423)
|
|
Fair value
adjustments
|
7
|
6
|
|
(10)
|
-
|
|
Adjusted EBITDA
(1)
|
$525
|
$396
|
|
$1,975
|
$1,493
|
|
Adjusted EBITDA
margin (1)
|
32.5%
|
25.0%
|
|
33.0%
|
25.3%
|
|
|
|
|
|
|
|
|
|
Thomson Reuters
Corporation
|
Reconciliation of
Net Earnings to Adjusted Earnings
(2)
|
Reconciliation of
Total Change in Adjusted EPS to Change in Constant Currency
(4)
|
(millions of U.S.
dollars, except for share and per share data)
|
(unaudited)
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
|
|
2020
|
2019
|
Change
|
|
2020
|
2019
|
Change
|
Net
earnings
|
$562
|
$1,324
|
|
|
$1,122
|
$1,564
|
|
Adjustments to
remove:
|
|
|
|
|
|
|
|
Fair value
adjustments
|
7
|
6
|
|
|
(10)
|
-
|
|
Amortization of other
identifiable intangible assets
|
31
|
34
|
|
|
123
|
114
|
|
Other operating gains,
net
|
(632)
|
(27)
|
|
|
(736)
|
(423)
|
|
Other finance costs
(income)
|
6
|
33
|
|
|
(30)
|
65
|
|
Share of post-tax
losses in equity method investments
|
159
|
44
|
|
|
544
|
599
|
|
Tax on above
items
|
119
|
(15)
|
|
|
19
|
(72)
|
|
Tax items impacting
comparability
|
(29)
|
(1,211)
|
|
|
(136)
|
(1,204)
|
|
Loss (earnings) from
discontinued operations, net of tax
|
25
|
(3)
|
|
|
27
|
6
|
|
Interim period
effective tax rate normalization (3)
|
21
|
1
|
|
|
-
|
-
|
|
Dividends declared on
preference shares
|
-
|
(1)
|
|
|
(2)
|
(3)
|
|
Adjusted earnings
(2)
|
$269
|
$185
|
|
|
$921
|
$646
|
|
Adjusted EPS
(2)
|
$0.54
|
$0.37
|
46%
|
|
$1.85
|
$1.29
|
43%
|
Foreign
currency
|
|
|
3%
|
|
|
|
0%
|
Constant currency
(4)
|
|
|
43%
|
|
|
|
43%
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares (millions)
|
498.8
|
501.1
|
|
|
498.0
|
502.5
|
|
|
Refer to page 23 for
footnotes.
|
Thomson Reuters
Corporation
|
Reconciliation of
Net Cash Provided by Operating Activities to Free Cash Flow
(5)
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
December
31,
|
|
December
31,
|
|
2020
|
2019
|
|
2020
|
2019
|
Net cash provided
by operating activities
|
$566
|
$355
|
|
$1,745
|
$702
|
Capital
expenditures
|
(100)
|
(140)
|
|
(504)
|
(505)
|
Proceeds from
disposals of property and equipment
|
-
|
7
|
|
162
|
7
|
Other investing
activities
|
2
|
4
|
|
4
|
9
|
Payments of lease
principal
|
(19)
|
(16)
|
|
(75)
|
(51)
|
Dividends paid on
preference shares
|
-
|
(1)
|
|
(2)
|
(3)
|
Free cash flow
(5)
|
$449
|
$209
|
|
$1,330
|
$159
|
|
|
|
|
|
|
|
Thomson Reuters
Corporation
|
Reconciliation of
Net Debt and Leverage Ratio of Net Debt to Adjusted EBITDA
(7)
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
|
December 31,
2020
|
Long-term
indebtedness
|
|
$3,772
|
Total
debt
|
|
3,772
|
Swaps
|
|
(100)
|
Total debt after
swaps
|
|
3,672
|
Remove fair value
adjustments for hedges
|
|
1
|
Total debt after
currency arrangements
|
|
3,673
|
Remove transaction
costs, premiums or discounts included in the carrying value of
debt
|
|
38
|
Add: lease
liabilities (current and non-current)
|
|
306
|
Less: cash and cash
equivalents
|
|
(1,787)
|
Net debt
(7)
|
|
$2,230
|
|
|
|
Adjusted EBITDA
(1)
|
|
$1,975
|
Net Debt /
Adjusted EBITDA (7)
|
|
1.1:1
|
|
Refer to page 23 for
footnotes.
|
Thomson Reuters
Corporation
|
Reconciliation of
Changes in Revenues to Changes in Revenues on a Constant Currency
(4) and Organic Basis
(6)
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
December
31,
|
|
Change
|
|
|
2020
|
2019*
|
|
Total
|
Foreign
Currency
|
SUBTOTAL
Constant
Currency (4)
|
Acquisitions/
(Divestitures)
|
Organic
(6)
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$653
|
$621
|
|
5%
|
0%
|
5%
|
1%
|
4%
|
Corporates
|
|
338
|
328
|
|
3%
|
-1%
|
4%
|
0%
|
3%
|
Tax &
Accounting Professionals
|
|
285
|
274
|
|
4%
|
-2%
|
6%
|
-2%
|
8%
|
"Big 3" Segments
Combined
|
|
1,276
|
1,223
|
|
4%
|
0%
|
5%
|
0%
|
5%
|
Reuters
News
|
|
164
|
164
|
|
0%
|
1%
|
-1%
|
2%
|
-3%
|
Global
Print
|
|
177
|
196
|
|
-10%
|
0%
|
-10%
|
0%
|
-10%
|
Eliminations/Rounding
|
|
(1)
|
-
|
|
|
|
|
|
|
Revenues
|
|
$1,616
|
$1,583
|
|
2%
|
0%
|
2%
|
0%
|
2%
|
|
|
|
|
|
|
|
|
|
|
Recurring
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$608
|
$574
|
|
6%
|
0%
|
6%
|
1%
|
5%
|
Corporates
|
|
293
|
276
|
|
6%
|
-1%
|
6%
|
0%
|
6%
|
Tax &
Accounting Professionals
|
|
255
|
243
|
|
5%
|
-2%
|
7%
|
-2%
|
9%
|
"Big 3" Segments
Combined
|
|
1,156
|
1,093
|
|
6%
|
0%
|
6%
|
0%
|
6%
|
Reuters
News
|
|
142
|
143
|
|
-1%
|
1%
|
-2%
|
0%
|
-2%
|
Total Recurring
Revenues
|
|
$1,298
|
$1,236
|
|
5%
|
0%
|
5%
|
0%
|
5%
|
|
|
|
|
|
|
|
|
|
|
Transactions
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$45
|
$47
|
|
-4%
|
1%
|
-5%
|
1%
|
-6%
|
Corporates
|
|
45
|
52
|
|
-12%
|
-1%
|
-11%
|
0%
|
-11%
|
Tax &
Accounting Professionals
|
|
30
|
31
|
|
-4%
|
0%
|
-4%
|
-3%
|
-1%
|
"Big 3" Segments
Combined
|
|
120
|
130
|
|
-7%
|
0%
|
-7%
|
0%
|
-7%
|
Reuters
News
|
|
22
|
21
|
|
5%
|
-2%
|
7%
|
17%
|
-10%
|
Total Transactions
Revenues
|
|
$142
|
$151
|
|
-5%
|
0%
|
-5%
|
2%
|
-7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* For comparative
purposes, 2019 segment results have been adjusted to reflect the
current period presentation. For additional information, see the
"Adjustments to Prior-Period Segment Results" section of this news
release.
|
|
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.
|
|
Refer to page 23 for
footnotes.
|
Thomson Reuters
Corporation
|
Reconciliation of
Changes in Revenues to Changes in Revenues on a Constant Currency
(4) and Organic Basis
(6)
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
|
|
Year
Ended
|
|
|
|
|
|
|
|
December
31,
|
|
Change
|
|
|
2020
|
2019*
|
|
Total
|
Foreign
Currency
|
SUBTOTAL Constant
Currency (4)
|
Acquisitions/
(Divestitures)
|
Organic
(6)
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$2,535
|
$2,433
|
|
4%
|
0%
|
4%
|
1%
|
3%
|
Corporates
|
|
1,367
|
1,308
|
|
5%
|
-1%
|
5%
|
1%
|
5%
|
Tax &
Accounting Professionals
|
|
836
|
843
|
|
-1%
|
-3%
|
2%
|
-3%
|
4%
|
"Big 3" Segments
Combined
|
|
4,738
|
4,584
|
|
3%
|
-1%
|
4%
|
0%
|
4%
|
Reuters
News
|
|
628
|
630
|
|
0%
|
0%
|
0%
|
5%
|
-5%
|
Global
Print
|
|
620
|
693
|
|
-11%
|
-1%
|
-10%
|
0%
|
-10%
|
Eliminations/Rounding
|
|
(2)
|
(1)
|
|
|
|
|
|
|
Revenues
|
|
$5,984
|
$5,906
|
|
1%
|
-1%
|
2%
|
1%
|
1%
|
|
|
|
|
|
|
|
|
|
|
Recurring
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$2,367
|
$2,249
|
|
5%
|
0%
|
6%
|
1%
|
4%
|
Corporates
|
|
1,143
|
1,079
|
|
6%
|
-1%
|
7%
|
1%
|
6%
|
Tax &
Accounting Professionals
|
|
682
|
703
|
|
-3%
|
-3%
|
0%
|
-5%
|
5%
|
"Big 3" Segments
Combined
|
|
4,192
|
4,031
|
|
4%
|
-1%
|
5%
|
0%
|
5%
|
Reuters
News
|
|
566
|
573
|
|
-1%
|
0%
|
-2%
|
0%
|
-2%
|
Total Recurring
Revenues
|
|
$4,758
|
$4,604
|
|
3%
|
-1%
|
4%
|
0%
|
4%
|
|
|
|
|
|
|
|
|
|
|
Transactions
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$168
|
$184
|
|
-9%
|
0%
|
-9%
|
0%
|
-9%
|
Corporates
|
|
224
|
229
|
|
-2%
|
-1%
|
-1%
|
3%
|
-4%
|
Tax &
Accounting Professionals
|
|
154
|
140
|
|
10%
|
-1%
|
11%
|
8%
|
2%
|
"Big 3" Segments
Combined
|
|
546
|
553
|
|
-1%
|
-1%
|
-1%
|
3%
|
-4%
|
Reuters
News
|
|
62
|
57
|
|
9%
|
-3%
|
12%
|
41%
|
-29%
|
Total Transactions
Revenues
|
|
$608
|
$610
|
|
0%
|
-1%
|
0%
|
8%
|
-7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* For comparative
purposes, 2019 segment results have been adjusted to reflect the
current period presentation. For additional information, see the
"Adjustments to Prior-Period Segment Results" section of this news
release.
|
|
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.
|
|
Refer to page 23 for
footnotes.
|
Thomson Reuters
Corporation
|
Reconciliation of
Changes in Adjusted EBITDA to Changes on a Constant
Currency Basis (4)
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
December
31,
|
|
Change
|
|
|
2020
|
2019*
|
|
Total
|
Foreign
Currency
|
Constant
Currency
(4)
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$245
|
$215
|
|
14%
|
1%
|
13%
|
Corporates
|
|
105
|
98
|
|
7%
|
1%
|
6%
|
Tax &
Accounting Professionals
|
|
145
|
134
|
|
9%
|
-1%
|
10%
|
"Big 3" Segments
Combined
|
|
495
|
447
|
|
11%
|
0%
|
11%
|
Reuters
News
|
|
6
|
10
|
|
-41%
|
-7%
|
-34%
|
Global
Print
|
|
61
|
77
|
|
-21%
|
1%
|
-22%
|
Corporate
costs
|
|
(37)
|
(138)
|
|
n/a
|
n/a
|
n/a
|
Adjusted
EBITDA
|
|
$525
|
$396
|
|
33%
|
1%
|
32%
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
37.5%
|
34.5%
|
|
300bp
|
30bp
|
270bp
|
Corporates
|
|
31.1%
|
30.0%
|
|
110bp
|
40bp
|
70bp
|
Tax &
Accounting Professionals
|
|
51.1%
|
48.7%
|
|
240bp
|
40bp
|
200bp
|
"Big 3" Segments
Combined
|
|
38.8%
|
36.5%
|
|
230bp
|
20bp
|
210bp
|
Reuters
News
|
|
3.9%
|
6.5%
|
|
-260bp
|
-20bp
|
-240bp
|
Global
Print
|
|
34.6%
|
39.4%
|
|
-480bp
|
50bp
|
-530bp
|
Corporate
costs
|
|
n/a
|
n/a
|
|
n/a
|
n/a
|
n/a
|
Adjusted EBITDA
margin
|
|
32.5%
|
25.0%
|
|
750bp
|
20bp
|
730bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/a: not
applicable
|
|
* For comparative
purposes, 2019 segment results have been adjusted to reflect the
current period presentation. For additional information, see the
"Adjustments to Prior-Period Segment Results" section of this news
release.
|
|
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.
|
|
Refer to page 23 for
footnotes.
|
Thomson Reuters
Corporation
|
Reconciliation of
Changes in Adjusted EBITDA to Changes on a Constant
Currency Basis (4)
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
|
|
Year
Ended
|
|
|
|
|
December
31,
|
|
Change
|
|
|
2020
|
2019*
|
|
Total
|
Foreign
Currency
|
Constant
Currency
(4)
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$1,001
|
$895
|
|
12%
|
0%
|
12%
|
Corporates
|
|
460
|
412
|
|
12%
|
0%
|
11%
|
Tax &
Accounting Professionals
|
|
330
|
318
|
|
4%
|
-2%
|
6%
|
"Big 3" Segments
Combined
|
|
1,791
|
1,625
|
|
10%
|
0%
|
10%
|
Reuters
News
|
|
73
|
68
|
|
7%
|
8%
|
-1%
|
Global
Print
|
|
242
|
294
|
|
-18%
|
0%
|
-18%
|
Corporate
costs
|
|
(131)
|
(494)
|
|
n/a
|
n/a
|
n/a
|
Adjusted
EBITDA
|
|
$1,975
|
$1,493
|
|
32%
|
0%
|
32%
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
39.5%
|
36.8%
|
|
270bp
|
20bp
|
250bp
|
Corporates
|
|
33.7%
|
31.5%
|
|
220bp
|
40bp
|
180bp
|
Tax &
Accounting Professionals
|
|
39.5%
|
37.6%
|
|
190bp
|
30bp
|
160bp
|
"Big 3" Segments
Combined
|
|
37.8%
|
35.4%
|
|
240bp
|
30bp
|
210bp
|
Reuters
News
|
|
11.7%
|
10.9%
|
|
80bp
|
90bp
|
-10bp
|
Global
Print
|
|
39.0%
|
42.5%
|
|
-350bp
|
40bp
|
-390bp
|
Corporate
costs
|
|
n/a
|
n/a
|
|
n/a
|
n/a
|
n/a
|
Adjusted EBITDA
margin
|
|
33.0%
|
25.3%
|
|
770bp
|
10bp
|
760bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/a: not
applicable
|
|
* For comparative
purposes, 2019 segment results have been adjusted to reflect the
current period presentation. For additional information, see the
"Adjustments to Prior-Period Segment Results" section of this news
release.
|
|
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.
|
|
Refer to page 23 for
footnotes.
|
Footnotes
|
(1)
|
Thomson Reuters
defines adjusted EBITDA for its business segments as 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, fair value adjustments and corporate related
items. Consolidated adjusted EBITDA is comprised of adjusted EBITDA
for its business segments and corporate costs. Adjusted EBITDA
margin is adjusted EBITDA expressed as a percentage of revenues.
Thomson Reuters uses adjusted EBITDA because it 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. Adjusted
EBITDA also represents a measure commonly reported and widely used
by investors as a valuation metric. Additionally, this measure is
used by Thomson Reuters and investors to assess a company's ability
to incur and service debt.
|
(2)
|
Thomson Reuters
defines adjusted earnings as net earnings or loss including
dividends declared on preference shares but excluding the post-tax
impacts of fair value adjustments, amortization of other
identifiable intangible assets, 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. Thomson Reuters calculates the post-tax
amount of each item 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. Thomson Reuters uses adjusted earnings and adjusted
EPS as they provide a more comparable basis to analyze earnings and
they are also measures commonly used by shareholders to measure the
company's performance.
|
(3)
|
Adjustment to reflect
income taxes based on 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.
|
(4)
|
The changes in
revenues, adjusted EBITDA and the related margins, and adjusted
earnings per share before currency (at constant currency or
excluding the effects of currency) are determined by converting the
current and prior-year period's local currency equivalent using the
same exchange rates.
|
(5)
|
Free cash flow is net
cash provided by operating activities, proceeds from disposals of
property and equipment, and other investing activities less capital
expenditures, payments of lease principal, dividends paid on the
company's preference shares, and dividends paid to non-controlling
interests. Thomson Reuters uses free cash flow as it 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 new
acquisitions.
|
(6)
|
Represents changes in
revenues of our existing businesses at constant currency. The
metric excludes the distortive impacts of acquisitions and
dispositions from not owning the business in both comparable
periods. Thomson Reuters uses organic growth because it provides
further insight into the performance of its 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.
|
(7)
|
Net debt is total
indebtedness (excluding the associated unamortized transaction
costs and premiums or discounts) plus the currency related fair
value of associated hedging instruments, and lease liabilities less
cash and cash equivalents. For purposes of calculating the leverage
ratio, net debt is divided by adjusted EBITDA for the previous
twelve-month period ending with the current fiscal
quarter.
|
APPENDIX – INFORMATION ABOUT REFINITIV
At December 31, 2020, Thomson
Reuters owned a 45% interest in Refinitiv, which was formerly its
wholly owned F&R business. 55% of Refinitiv was owned by
private equity funds affiliated with Blackstone. Thomson Reuters
IFRS results include the company's 45% share of Refinitiv's results
reported in a single line item on the company's consolidated income
statement titled "Share of post-tax losses in equity
method investments."
Thomson Reuters non-IFRS measures, including
adjusted earnings, exclude its
share of post-tax results in Refinitiv and
other equity method investments.
The table below sets forth selected financial information for
100% of Refinitiv for the three months and year ended December 31, 2020 and 2019 on both an IFRS and
non-IFRS basis. Refinitiv reports on a US GAAP basis and provides a
reconciliation to IFRS in accordance with Thomson Reuters
accounting policies. A reconciliation from the IFRS measures to the
related non-IFRS measures is also included in this appendix.
On January 29, 2021, Thomson
Reuters and private equity funds affiliated with Blackstone sold
Refinitiv to LSEG, in an all share transaction.
|
Refinitiv
|
|
Financial
Data
|
|
(millions of U.S.
dollars, except for margins)
|
|
(unaudited)
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December 31,
|
|
|
|
Change
|
|
|
Change
|
|
2020
|
2019
|
Total
|
Before
Currency &
Excluding
Businesses
Disposed
|
|
2020
|
2019
|
Total
|
Before
Currency &
Excluding
Businesses
Disposed
|
IFRS
Measures
|
|
|
|
|
|
|
|
|
|
Revenues
|
$1,677
|
$1,576
|
6%
|
4%
|
|
$6,513
|
$6,250
|
4%
|
4%
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$(329)
|
$(77)
|
|
|
|
$(1,137)
|
$(1,278)
|
|
|
Cash flow from
operations
|
$354
|
$256
|
|
|
|
$1,287
|
$733
|
|
|
Capital expenditures,
less
proceeds
from disposals
|
$109
|
$94
|
|
|
|
$584
|
$513
|
|
|
Debt at December 31,
2020 and
December 31, 2019
|
|
|
|
|
|
$14,678
|
$13,877
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-IFRS
Measures
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$665
|
$553
|
|
|
|
$2,539
|
$2,208
|
|
|
Adjusted EBITDA
margin
|
39.7%
|
35.1%
|
|
|
|
39.0%
|
35.3%
|
|
|
Free cash
flow
|
$233
|
$147
|
|
|
|
$669
|
$106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following reconciliations of IFRS measures to non-IFRS
measures are based on Refinitiv's definition of non-GAAP measures,
which is not the same as the definitions used by Thomson
Reuters.
Refinitiv
|
Reconciliation of
Net Loss to Adjusted EBITDA
|
(millions of U.S.
dollars, except for margins)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
December
31,
|
|
December
31,
|
|
2020
|
2019
|
|
2020
|
2019
|
Net
loss
|
$(329)
|
$(77)
|
|
$(1,137)
|
$(1,278)
|
Adjustments to
remove:
|
|
|
|
|
|
Tax expense
(benefit)
|
20
|
(92)
|
|
59
|
(114)
|
Finance
costs
|
299
|
102
|
|
1,009
|
1,176
|
Depreciation and
amortization
|
548
|
470
|
|
2,022
|
1,901
|
EBITDA
|
$538
|
$403
|
|
$1,953
|
$1,685
|
Adjustments to
remove:
|
|
|
|
|
|
Share of post-tax
earnings in equity method investments
|
-
|
(1)
|
|
-
|
(2)
|
Other operating
losses
|
40
|
22
|
|
94
|
2
|
Fair value
adjustments
|
(7)
|
4
|
|
23
|
49
|
Share-based
compensation
|
10
|
11
|
|
36
|
53
|
Transformation-related
costs
|
84
|
114
|
|
433
|
421
|
Adjusted
EBITDA
|
$665
|
$553
|
|
$2,539
|
$2,208
|
Adjusted EBITDA
margin
|
39.7%
|
35.1%
|
|
39.0%
|
35.3%
|
|
|
|
|
|
|
|
|
Refinitiv
|
Reconciliation of
Net Cash Provided By Operating Activities to Free Cash
Flow
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
December
31,
|
|
December
31,
|
|
2020
|
2019
|
|
2020
|
2019
|
Net cash provided
by operating activities
|
$354
|
$256
|
|
$1,287
|
$733
|
Capital expenditures,
less proceeds from disposals
|
(109)
|
(94)
|
|
(584)
|
(513)
|
Other investing
activities
|
-
|
-
|
|
1
|
1
|
Dividends paid to
non-controlling interests
|
(12)
|
(15)
|
|
(35)
|
(115)
|
Free cash
flow
|
$233
|
$147
|
|
$669
|
$106
|
|
|
|
|
|
|
|
|
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SOURCE Thomson Reuters