TORONTO, Nov. 2, 2021 /PRNewswire/ -- Thomson Reuters
(TSX/NYSE: TRI) today reported results for the third quarter ended
September 30, 2021:
- Total company revenue up 6% / organic revenue up 5%
-
- Revenue for four of five business segments grew 6%
organically
- Raised full-year 2021 revenue guidance
-
- Total company revenue forecast increased to 4.5% - 5.0% from
4.0% - 4.5%
- "Big 3" segments revenue forecast increased to approximately
6.0% from 5.5% - 6.0%
- Raised full-year 2021 free cash flow guidance to approximately
$1.2 billion from $1.1 - $1.2
billion
- Reaffirmed full-year 2022 and 2023 guidance, with minor
adjustments to 2022 Change Program spend
- Change Program on track - achieved $132
million run-rate operating expense savings through
September 30
- Repurchased $1.1 billion of
company shares under $1.2 billion
buyback program through October
31
"The momentum we saw in the first half of the year continued
into the third quarter with revenue and sales performance above our
expectations and consistent across the business. This strong
performance reflects how our products fit the needs of our
customers, enabling them to better serve their own clients in a
rapidly changing workplace. It also demonstrates our leading
positions in healthy and growing markets. Based on our strong
financial performance and our confidence in the trajectory of the
business for the remainder of the year, we have again increased our
full-year 2021 revenue guidance," said Steve Hasker, president and CEO of Thomson
Reuters.
Mr. Hasker added, "While the third quarter was another strong
one, we still have a lot to achieve. We are focused on building a
leading content-driven technology company, and our talented teams
continue to work ambitiously towards that goal. I am very pleased
with our achievements to date and believe we are well positioned to
build on this progress in 2022."
Consolidated Financial Highlights - Three Months Ended
September 30
Three Months Ended
September 30,
(Millions of U.S.
dollars, except for adjusted EBITDA margin and EPS)
(unaudited)
|
IFRS Financial
Measures(1)
|
2021
|
2020
|
Change
|
Change
at
Constant
Currency
|
Revenues
|
$1,526
|
$1,443
|
6%
|
|
Operating
profit
|
$282
|
$318
|
-11%
|
|
Diluted (loss)
earnings per share (EPS)
|
$(0.49)
|
$0.48
|
n/m
|
|
Net cash provided by
operating activities
|
$534
|
$581
|
-9%
|
|
Non-IFRS Financial
Measures(1)
|
|
|
|
|
Revenues
|
$1,526
|
$1,443
|
6%
|
5%
|
Adjusted
EBITDA
|
$458
|
$491
|
-7%
|
-7%
|
Adjusted EBITDA
margin
|
30.0%
|
34.0%
|
-400bp
|
-410bp
|
Adjusted
EPS
|
$0.46
|
$0.39
|
18%
|
15%
|
Free cash
flow
|
$383
|
$541
|
-30%
|
|
(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.
n/m: not meaningful
|
Revenues increased 6%, driven by growth across four of
the company's five business segments and a 1% favorable impact from
foreign currency.
- Organic revenues increased 5%, driven by 6% growth in recurring
revenues (81% of total revenues), as well as 8% growth in
transactions revenues. Global Print revenues declined.
- 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
6%.
Operating profit decreased 11% as the prior-year period
included a significant benefit from the revaluation of warrants
that the company previously held in Refinitiv, which was sold to
London Stock Exchange Group (LSEG) in January 2021. Higher revenues and lower
depreciation and amortization more than offset higher costs which
included costs associated with the company's Change Program.
Additional information regarding the Change Program is provided
later in this news release.
- Adjusted EBITDA, which excludes the impact of the
warrant revaluation among other items, declined 7% as higher
revenues were more than offset by higher costs, which included
costs associated with the company's Change Program. The related
margin decreased to 30.0% from 34.0% primarily because costs from
the Change Program negatively impacted the margin by
350bp.
Diluted loss per share of $0.49 was due to a decrease in value of the
company's LSEG investment as compared to diluted earnings per share
of $0.48 in the prior-year
period.
- Adjusted EPS, which excludes the change in value of the
company's LSEG investment, as well as other adjustments, increased
to $0.46 per share from $0.39 per share in the prior-year period as lower
depreciation and amortization and lower income taxes offset lower
adjusted EBITDA.
Net cash provided by operating activities decreased as
higher revenues were more than offset by higher expenses, which
included Change Program costs, and higher tax payments.
- Free cash flow decreased due to lower cash flow
from operating activities and because the prior-year period
included proceeds from the sale of real estate.
Highlights by Customer Segment - Three Months Ended
September 30
(Millions of U.S.
dollars, except for adjusted EBITDA margins)
(unaudited)
|
|
Three Months
Ended
|
|
|
|
|
|
September
30,
|
|
Change
|
|
|
2021
|
2020
|
|
Total
|
Constant
Currency
|
Organic(1)
|
Revenues
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$682
|
$636
|
|
7%
|
6%
|
6%
|
Corporates
|
|
356
|
333
|
|
7%
|
6%
|
6%
|
Tax &
Accounting Professionals
|
|
175
|
165
|
|
6%
|
6%
|
6%
|
"Big 3" Segments
Combined
|
|
1,213
|
1,134
|
|
7%
|
6%
|
6%
|
Reuters
News
|
|
164
|
154
|
|
6%
|
6%
|
6%
|
Global
Print
|
|
149
|
154
|
|
-3%
|
-5%
|
-5%
|
Eliminations/Rounding
|
|
-
|
1
|
|
|
|
|
Revenues
|
|
$1,526
|
$1,443
|
|
6%
|
5%
|
5%
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$288
|
$272
|
|
6%
|
4%
|
|
Corporates
|
|
131
|
120
|
|
9%
|
9%
|
|
Tax &
Accounting Professionals
|
|
49
|
47
|
|
4%
|
6%
|
|
"Big 3" Segments
Combined
|
|
468
|
439
|
|
7%
|
6%
|
|
Reuters
News
|
|
25
|
23
|
|
4%
|
8%
|
|
Global
Print
|
|
52
|
64
|
|
-18%
|
-19%
|
|
Corporate
costs
|
|
(87)
|
(35)
|
|
n/a
|
n/a
|
|
Adjusted
EBITDA
|
|
$458
|
$491
|
|
-7%
|
-7%
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
42.3%
|
42.8%
|
|
-50bp
|
-80bp
|
|
Corporates
|
|
36.8%
|
36.0%
|
|
80bp
|
80bp
|
|
Tax &
Accounting Professionals
|
|
28.0%
|
28.5%
|
|
-50bp
|
-20bp
|
|
"Big 3" Segments
Combined
|
|
38.6%
|
38.7%
|
|
-10bp
|
-20bp
|
|
Reuters
News
|
|
14.9%
|
15.2%
|
|
-30bp
|
20bp
|
|
Global
Print
|
|
35.0%
|
41.1%
|
|
-610bp
|
-630bp
|
|
Corporate
costs
|
|
n/a
|
n/a
|
|
n/a
|
n/a
|
|
Adjusted EBITDA
margin
|
|
30.0%
|
34.0%
|
|
-400bp
|
-410bp
|
|
|
n/a: not
applicable
(1) 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 6% (all organic) to $682 million.
- Recurring revenues grew 6% (93% of total, all organic),
primarily due to strong performances from Practical Law, Westlaw
Edge, FindLaw and the Government business as well as contributions
from the company's Canadian, European and Asian & Emerging
Markets businesses.
- Transactions revenues grew 10% (7% of total, all organic),
primarily related to Elite, FindLaw and the Government
businesses.
Adjusted EBITDA increased 6% to $288 million.
- The margin decreased to 42.3% from 42.8%, primarily due to
year-over-year timing of expenses such as marketing and selling
costs.
Corporates
Revenues increased 6% (all organic) to $356 million, primarily due to strong recurring
revenue growth, including strong performance from Practical Law,
Indirect Tax and CLEAR as well as contributions from the company's
Latin American and Asian businesses.
- Recurring revenues grew 7% (87% of total, all organic) driven
by Practical Law, Indirect Tax and CLEAR as well as the company's
businesses in Latin America and
Asia & Emerging Markets.
- Transactions revenues grew 2% (13% of total, all organic).
Adjusted EBITDA increased 9% to $131 million.
- The margin increased to 36.8% from 36.0%, primarily due to
higher revenues.
Tax & Accounting Professionals
Revenues increased 6% (all organic) to $175 million, reflecting recurring revenue growth
of 10% and a 9% decline in transactions revenues.
- Recurring revenues grew 10% (84% of total, all organic), driven
by strong growth from the company's Latin American businesses and
audit solutions, which includes Confirmation.
- Transactions revenues decreased 9% (16% of total, all organic),
primarily due to the year-over-year timing of the U.S. federal tax
filing deadlines for individuals moving from the third quarter of
2020 to the second quarter of 2021.
-
- Normalizing for the shift in the U.S. federal tax filing
deadline, organic revenues increased 11%.
Adjusted EBITDA increased 4% to $49 million.
- The margin decreased to 28.0% from 28.5%, primarily due to the
year-over-year timing of revenue related to the U.S. federal tax
filing deadline.
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 increased 6%, all organic, primarily due to the Agency
business and Professional business, including Reuters Events, which
grew over 60% organically compared to the prior-year period, which
was negatively impacted by COVID-19.
- Reuters Events continues to hold nearly all events virtually
and continues to assess when a return to regular in-person events
can resume based on local health guidelines and feedback from
customers.
Adjusted EBITDA increased 4% to $25 million, primarily due to higher
revenues.
Global Print
Revenues decreased 5% to $149
million, as expected. Global Print's full-year 2021 revenues
are forecast to decline between 4% and 6%.
Adjusted EBITDA decreased 18% to $52 million.
- The margin decreased to 35.0% from 41.1% due to decreased
revenues and the dilutive impact of lower margin third-party print
revenue.
Corporate Costs
Corporate costs at the adjusted EBITDA level were
$87 million and included $53 million of Change Program costs. Corporate
costs were $35 million in the
prior-year period. Additional information regarding the Change
Program is provided below.
Consolidated Financial Highlights - Nine Months Ended
September 30
Nine Months Ended
September 30,
(Millions of U.S.
dollars, except for adjusted EBITDA margin and EPS)
(unaudited)
|
IFRS Financial
Measures(1)
|
2021
|
2020
|
Change
|
Change at
Constant
Currency
|
Revenues
|
$4,638
|
$4,368
|
6%
|
|
Operating
profit
|
$985
|
$973
|
1%
|
|
Diluted earnings per
share (EPS)
|
$11.80
|
$1.12
|
n/m
|
|
Net cash provided by
operating activities
|
$1,376
|
$1,179
|
17%
|
|
Non-IFRS Financial
Measures(1)
|
|
|
|
|
Revenues
|
$4,638
|
$4,368
|
6%
|
5%
|
Adjusted
EBITDA
|
$1,518
|
$1,450
|
5%
|
4%
|
Adjusted EBITDA
margin
|
32.7%
|
33.2%
|
-50bp
|
-30bp
|
Adjusted
EPS
|
$1.52
|
$1.31
|
16%
|
15%
|
Free cash
flow
|
$1,001
|
$881
|
13%
|
|
(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.
n/m: not
meaningful
|
Revenues increased 6% related to growth in recurring and
transactions revenues and a 1% favorable impact from foreign
currency.
- Organic revenues increased 5% primarily due to 5% growth in
recurring revenues (79% of total revenues) as well as growth in
transactions revenues. Global Print revenues declined.
- The company's "Big 3" segments, which collectively comprised
80% of total revenues, reported organic revenue growth of 6%.
Operating profit increased 1% as higher revenues helped
to offset higher costs, which included costs associated with the
company's Change Program, as well as a benefit associated with the
revaluation of the Refinitiv warrants in the prior-year period.
- Adjusted EBITDA which excludes the impact of the
warrant revaluation among other items, increased 5% as
higher revenues more than offset higher costs. The related margin
decreased to 32.7% from 33.2% in the prior-year period. Adjusted
EBITDA margin was negatively impacted by 230bp due to Change
Program costs.
Diluted EPS increased to $11.80 per share from $1.12 per share in the prior-year period due to
the gain on the sale of Refinitiv to LSEG in January 2021.
- Adjusted EPS, which excludes the gain on the sale of
Refinitiv, as well as other adjustments, increased to $1.52 per share from $1.31 per share in the prior-year period,
primarily due to higher adjusted EBITDA and lower income tax
expense.
Net cash provided by operating activities increased as
higher revenues and favorable movements in working capital
(including lower annual incentive bonus payments, which were due to
the impact of COVID-19 in 2020) more than offset higher tax
payments and expenses, which included Change Program costs.
- Free cash flow increased as higher cash flows from
operating activities more than offset a prior-year period benefit
from the proceeds associated with the sale of real
estate.
Highlights by Customer Segment - Nine Months Ended
September 30
(Millions of U.S.
dollars, except for adjusted EBITDA margins)
(unaudited)
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September 30,
|
|
Change
|
|
|
2021
|
2020
|
|
Total
|
Constant
Currency
|
Organic(1)
|
Revenues
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$2,023
|
$1,882
|
|
7%
|
6%
|
6%
|
Corporates
|
|
1,088
|
1,029
|
|
6%
|
5%
|
5%
|
Tax &
Accounting Professionals
|
|
597
|
551
|
|
8%
|
8%
|
8%
|
"Big 3" Segments
Combined
|
|
3,708
|
3,462
|
|
7%
|
6%
|
6%
|
Reuters
News
|
|
492
|
464
|
|
6%
|
5%
|
5%
|
Global
Print
|
|
439
|
443
|
|
-1%
|
-3%
|
-3%
|
Eliminations/Rounding
|
|
(1)
|
(1)
|
|
|
|
|
Revenues
|
|
$4,638
|
$4,368
|
|
6%
|
5%
|
5%
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$852
|
$756
|
|
13%
|
11%
|
|
Corporates
|
|
407
|
355
|
|
15%
|
14%
|
|
Tax &
Accounting Professionals
|
|
219
|
185
|
|
18%
|
18%
|
|
"Big 3" Segments
Combined
|
|
1,478
|
1,296
|
|
14%
|
13%
|
|
Reuters
News
|
|
88
|
67
|
|
30%
|
44%
|
|
Global
Print
|
|
165
|
181
|
|
-9%
|
-11%
|
|
Corporate
costs
|
|
(213)
|
(94)
|
|
n/a
|
n/a
|
|
Adjusted
EBITDA
|
|
$1,518
|
$1,450
|
|
5%
|
4%
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
42.1%
|
40.2%
|
|
190bp
|
180bp
|
|
Corporates
|
|
37.4%
|
34.5%
|
|
290bp
|
310bp
|
|
Tax &
Accounting Professionals
|
|
36.6%
|
33.6%
|
|
300bp
|
310bp
|
|
"Big 3" Segments
Combined
|
|
39.9%
|
37.4%
|
|
250bp
|
230bp
|
|
Reuters
News
|
|
17.8%
|
14.5%
|
|
330bp
|
540bp
|
|
Global
Print
|
|
37.5%
|
40.7%
|
|
-320bp
|
-340bp
|
|
Corporate
costs
|
|
n/a
|
n/a
|
|
n/a
|
n/a
|
|
Adjusted EBITDA
margin
|
|
32.7%
|
33.2%
|
|
-50bp
|
-30bp
|
|
|
n/a: not
applicable
(1) Computed for
revenue growth only.
|
Thomson Reuters Change Program and Outlook
In February 2021, the company
announced a 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. The company's 2021, 2022 and 2023
outlook is appended to this release.
The company's three-year outlook 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 third-quarter 2021 performance provides it
with increasing confidence about its outlook, the global economy
continues to experience substantial disruption due to concerns
regarding resurgences and new strains 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.
Today, the company reaffirmed and increased part of its
full-year outlook for 2021, which is reflected in the table below.
The company also reaffirmed its full-year outlook for 2022 and
2023, except for a minor increase to 2022 Change Program spend,
reflecting the carryover of the lower than expected spend in
2021.
Update to Full-Year 2021 Outlook
Total Thomson
Reuters
|
Original
FY
2021
Outlook
(February 23,
2021)
|
FY
2021
Outlook
Update
(May 4,
2021)
|
FY
2021
Outlook
Update
(August 5,
2021)
|
FY
2021
Outlook
Update
(November 2,
2021)
|
Total Revenue
Growth
|
3.0% -
4.0%
|
3.5% -
4.0%
|
4.0% -
4.5%
|
4.5% -
5.0%
|
Organic Revenue
Growth
|
3.0% -
4.0%
|
3.5% -
4.0%
|
4.0% -
4.5%
|
4.5% -
5.0%
|
Adjusted EBITDA
Margin
|
30% - 31%
|
Unchanged
|
31% - 32%
|
Unchanged
|
Corporate
Costs
Core Corporate
Costs
Change Program Operating
Expenses
|
$305 - $340
million
$130 - $140
million
$175 - $200
million
|
Unchanged
|
Unchanged
|
$305 - $330
million
Unchanged
$175 - $190
million
|
Free Cash
Flow
|
$1.0 - $1.1
billion
|
Unchanged
|
$1.1 - $1.2
billion
|
~ $1.2
billion
|
Capital Expenditures
- % of Revenue
Change Program Capital
Expenditures
|
9.0% -
9.5%
$125 - $150
million
|
Unchanged
|
Unchanged
|
Unchanged
$115 - $130
million
|
Depreciation &
Amortization of
Computer
Software
|
$650 - $675
million
|
Unchanged
|
Unchanged
|
Unchanged
|
Interest Expense
(P&L)
|
$190 - $210
million
|
Unchanged
|
Unchanged
|
Unchanged
|
Effective Tax Rate on
Adjusted Earnings
|
16% - 18%
|
Unchanged
|
Unchanged
|
14% - 16%
|
Big 3
Segments
(Legal Professionals,
Corporates and
Tax & Accounting Professionals)
|
Original
FY
2021
Outlook
(February 23,
2021)
|
FY
2021
Outlook
Update
(May 4,
2021)
|
FY
2021
Outlook
Update
(August 5,
2021)
|
FY
2021
Outlook
Update
(November 2,
2021)
|
Total Revenue
Growth
|
4.5% -
5.5%
|
5.0% -
5.5%
|
5.5% -
6.0%
|
~ 6.0%
|
Organic Revenue
Growth
|
4.5% -
5.5%
|
5.0% -
5.5%
|
5.5% -
6.0%
|
~ 6.0%
|
Adjusted EBITDA
Margin
|
38% - 39%
|
Unchanged
|
~ 39%
|
Unchanged
|
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."
Share Repurchases - Update on $1.2B Buyback Program
In August 2021, Thomson Reuters
announced that it plans to buy back up to $1.2 billion of its common shares. The new
buyback program is in addition to a $200
million repurchase program that was completed earlier this
year.
From August 2021 through
October 31, 2021, the company
repurchased approximately $1.1
billion of its common shares under the new buyback program.
As of October 31, 2021, Thomson
Reuters had approximately 487.1 million common shares
outstanding.
Dividends
In February 2021, the company
announced 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 December 15, 2021 to
common shareholders of record as of November
18, 2021.
London Stock Exchange Group (LSEG) Ownership Interest
In January 2021, Thomson Reuters
and private equity funds affiliated with Blackstone sold Refinitiv
to LSEG in an all-share transaction. Thomson Reuters indirectly
owns LSEG shares through an entity that it jointly owns with
Blackstone's consortium and a group of current LSEG and former
Refinitiv senior management.
As of October 31, 2021, Thomson
Reuters indirectly owned approximately 72.4 million LSEG shares
which had a market value of approximately $7.1 billion based on LSEG's closing share price
on that day. The company received $51
million of dividends from its LSEG investment in
June 2021 and an additional
$24 million in October 2021.
In March 2021, as permitted under
a lock-up exception, Thomson Reuters sold approximately 10.1
million LSEG shares for pre-tax net proceeds of $994 million. Over the course of 2021, Thomson
Reuters will pay approximately $225
million of tax on the sale of these shares and will use the
after-tax proceeds to pay the approximately $640 million of taxes that became payable when
the Refinitiv sale closed. In the nine-month period ended
September 30, 2021, the company paid
$662 million of taxes related to
these transactions.
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
(i) its share of post-tax earnings (losses) in equity
method investments, which is subject to changes in the stock
price of LSEG or (ii) the occurrence or amount of other operating
gains and losses that generally arise from business transactions
that the company does not currently anticipate.
ROUNDING
Other than EPS, the company reports its results in millions
of U.S. dollars, but computes percentage changes and margins using
whole dollars to be more precise. As a result, percentages and
margins calculated from reported amounts may differ from those
presented, and growth components may not total due to
rounding.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL
RISKS AND MATERIAL ASSUMPTIONS
Certain statements in this news release, including, but not
limited to, statements in Mr. Hasker's comments, the "Thomson
Reuters Change Program and Outlook" section, and the company's
expectations regarding Global Print and share repurchases, are
forward-looking. The words "will", "expect", "believe", "target",
"estimate", "could", "should", "intend", "predict", "project" and
similar expressions identify forward-looking statements. While the
company believes that it has a reasonable basis for making
forward-looking statements in this news release, they are not a
guarantee of future performance or outcomes and there is no
assurance that any of the other events described in any
forward-looking statement will materialize. Forward-looking
statements, 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, those discussed on pages 16-30 in the "Risk
Factors" section of the company's annual report for the year ended
December 31, 2020. These and other
risk factors are discussed in materials that Thomson Reuters from
time to time files with, or furnishes to, the Canadian securities
regulatory authorities and the U.S. Securities and Exchange
Commission (SEC). Thomson Reuters annual and quarterly reports are
also available in the "Investor Relations" section of
tr.com.
The company's business outlook is based on information
currently available to the company and is based on various external
and internal assumptions made by the company in light of its
experience and perception of historical trends, current conditions
and expected future developments (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. For a discussion of material assumptions and
material risks related to the company's outlook, please see pages
22-23 of the company's second-quarter management's discussion and
analysis (MD&A) for the period ended June 30, 2021. Material assumptions and material
risks related to the company's outlook will also be included in the
company's third-quarter MD&A for the period ended September 30, 2021, expected to be filed shortly.
The company's MD&A is filed with, or furnished to, the Canadian
securities regulatory authorities and the U.S. SEC and is also
available in the "Investor Relations" section of tr.com.
The company has provided an updated Outlook for the purpose
of presenting information about current expectations for the
periods presented. This information may not be appropriate for
other purposes. You are cautioned not to place undue reliance on
forward-looking statements which reflect expectations only as of
the date of this news release.
Except as may be required by applicable law, Thomson Reuters
disclaims any obligation to update or revise any forward-looking
statements, 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
third-quarter 2021 results and its business outlook today beginning
at 8:30 a.m. Eastern Daylight Time
(EDT). You can access the webcast by visiting ir.tr.com. An
archive of the webcast will be available following the
presentation.
Thomson Reuters Corporation
2021 -
2023 Outlook
Total Thomson
Reuters
|
2021
Outlook
Updated
|
2022
Outlook
Reaffirmed
|
2023
Outlook
Reaffirmed
|
Total Revenue
Growth
|
4.5% -
5.0%
|
4.0% -
5.0%
|
5.0% -
6.0%
|
Organic Revenue
Growth
|
4.5% -
5.0%
|
4.0% -
5.0%
|
5.0% -
6.0%
|
Adjusted EBITDA
Margin
|
31% - 32%
|
34% - 35%
|
38% – 40%
|
Corporate
Costs
Core Corporate
Costs
Change Program Operating
Expenses
|
$305 - $330
million
$130 - $140
million
$175 - $190
million
|
$245 - $290
million
$120 - $130
million
$125 - $160
million
|
$110 - $120
million
$110 - $120
million
$0
|
Free Cash
Flow
|
~ $1.2
billion
|
$1.2 - $1.3
billion
|
$1.8 - $2.0
billion
|
Capital Expenditures
- % of Revenue
Change Program Capital
Expenditures
|
9.0% -
9.5%
$115 - $130
million
|
7.5% -
8.0%
$85 - $120
million
|
6.0% -
6.5%
$0
|
Depreciation &
Amortization of
Computer
Software
|
$650 - $675
million
|
$620 - $645
million
|
$580 - $605
million
|
Interest Expense
(P&L)
|
$190 - $210
million
|
$190 - $210
million
|
$190 - $210
million
|
Effective Tax Rate on
Adjusted Earnings
|
14% - 16%
|
n/a
|
n/a
|
Big 3
Segments
(Legal Professionals,
Corporates and
Tax & Accounting Professionals)
|
2021
Outlook
Updated
|
2022
Outlook
Reaffirmed
|
2023
Outlook
Reaffirmed
|
Total Revenue
Growth
|
~ 6.0%
|
5.5% -
6.5%
|
6.0% -
7.0%
|
Organic Revenue
Growth
|
~ 6.0%
|
5.5% -
6.5%
|
6.0% -
7.0%
|
Adjusted EBITDA
Margin
|
~ 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
above entitled "Non-IFRS Financial Measures" for more information.
The information in this section should also be read in conjunction
with the section above entitled "Special Note Regarding
Forward-Looking Statements, Material Risks and Material
Assumptions."
Thomson Reuters
Corporation
|
Consolidated
Income Statement
|
(millions of U.S.
dollars, except per share data)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
2020
|
|
2021
|
2020
|
CONTINUING
OPERATIONS
|
|
|
|
|
|
Revenues
|
$1,526
|
$1,443
|
|
$4,638
|
$4,368
|
Operating
expenses
|
(1,060)
|
(955)
|
|
(3,114)
|
(2,901)
|
Depreciation
|
(40)
|
(61)
|
|
(128)
|
(144)
|
Amortization of
computer software
|
(119)
|
(133)
|
|
(356)
|
(362)
|
Amortization of other
identifiable intangible assets
|
(29)
|
(32)
|
|
(90)
|
(92)
|
Other operating
gains, net
|
4
|
56
|
|
35
|
104
|
Operating
profit
|
282
|
318
|
|
985
|
973
|
Finance costs,
net:
|
|
|
|
|
|
Net interest
expense
|
(46)
|
(49)
|
|
(146)
|
(146)
|
Other finance
income
|
34
|
2
|
|
30
|
36
|
Income before tax and
equity method investments
|
270
|
271
|
|
869
|
863
|
Share of post-tax
(losses) earnings in equity method
investments
|
(672)
|
(178)
|
|
6,717
|
(385)
|
Tax benefit
(expense)
|
161
|
147
|
|
(1,722)
|
84
|
(Loss) earnings
from continuing operations
|
(241)
|
240
|
|
5,864
|
562
|
Earnings (loss) from
discontinued operations, net of tax
|
1
|
1
|
|
-
|
(2)
|
Net (loss)
earnings
|
$(240)
|
$241
|
|
$5,864
|
$560
|
(Loss) earnings
attributable to common shareholders
|
$(240)
|
$241
|
|
$5,864
|
$560
|
|
|
|
|
|
|
Earnings (loss)
per share:
|
|
|
|
|
|
Basic (loss) earnings
per share:
|
|
|
|
|
|
From
continuing operations
|
$(0.49)
|
$0.48
|
|
$11.83
|
$1.13
|
From
discontinued operations
|
-
|
-
|
|
-
|
(0.01)
|
Basic (loss) earnings
per share
|
$(0.49)
|
$0.48
|
|
$11.83
|
$1.12
|
|
|
|
|
|
|
Diluted (loss)
earnings per share:
|
|
|
|
|
|
From
continuing operations
|
$(0.49)
|
$0.48
|
|
$11.80
|
$1.12
|
From
discontinued operations
|
-
|
-
|
|
-
|
-
|
Diluted (loss)
earnings per share
|
$(0.49)
|
$0.48
|
|
$11.80
|
$1.12
|
|
|
|
|
|
|
Basic
weighted-average common shares
|
494,624,854
|
497,090,942
|
|
495,515,310
|
496,544,202
|
Diluted
weighted-average common shares
|
494,624,854
|
498,433,719
|
|
496,593,404
|
497,828,059
|
Thomson Reuters
Corporation
|
Consolidated
Statement of Financial Position
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
September 30,
|
|
December
31,
|
2021
|
|
2020
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$1,511
|
|
$1,787
|
Trade and other
receivables
|
951
|
|
1,151
|
Other financial
assets
|
83
|
|
612
|
Prepaid expenses and
other current assets
|
463
|
|
425
|
Current
assets
|
3,008
|
|
3,975
|
|
|
|
|
Property and
equipment, net
|
473
|
|
545
|
Computer software,
net
|
808
|
|
830
|
Other identifiable
intangible assets, net
|
3,359
|
|
3,427
|
Goodwill
|
5,935
|
|
5,976
|
Equity method
investments
|
7,225
|
|
1,136
|
Other non-current
assets
|
1,148
|
|
788
|
Deferred
tax
|
1,143
|
|
1,204
|
Total
assets
|
$23,099
|
|
$17,881
|
|
|
|
|
Liabilities and
equity
|
|
|
|
Liabilities
|
|
|
|
Payables, accruals
and provisions
|
$1,226
|
|
$1,159
|
Current tax
liabilities
|
398
|
|
251
|
Deferred
revenue
|
838
|
|
866
|
Other financial
liabilities
|
649
|
|
376
|
Current
liabilities
|
3,111
|
|
2,652
|
|
|
|
|
Long-term
indebtedness
|
3,782
|
|
3,772
|
Provisions and other
non-current liabilities
|
971
|
|
1,083
|
Deferred
tax
|
1,044
|
|
394
|
Total
liabilities
|
8,908
|
|
7,901
|
|
|
|
|
Equity
|
|
|
|
Capital
|
5,463
|
|
5,458
|
Retained
earnings
|
9,550
|
|
5,211
|
Accumulated other
comprehensive loss
|
(822)
|
|
(689)
|
Total
equity
|
14,191
|
|
9,980
|
Total liabilities
and equity
|
$23,099
|
|
$17,881
|
Thomson Reuters
Corporation
|
Consolidated
Statement of Cash Flow
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2021
|
2020
|
|
2021
|
2020
|
Cash provided by
(used in):
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
(Loss) earnings from
continuing operations
|
$(241)
|
$240
|
|
$5,864
|
$562
|
Adjustments
for:
|
|
|
|
|
|
Depreciation
|
40
|
61
|
|
128
|
144
|
Amortization of
computer software
|
119
|
133
|
|
356
|
362
|
Amortization of other
identifiable intangible assets
|
29
|
32
|
|
90
|
92
|
Share of post-tax
losses (earnings) in equity method investments
|
672
|
178
|
|
(6,717)
|
385
|
Deferred
tax
|
(153)
|
(153)
|
|
770
|
(190)
|
Other
|
(7)
|
(10)
|
|
56
|
(16)
|
Changes in working
capital and other items
|
101
|
103
|
|
901
|
(147)
|
Operating cash flows
from continuing operations
|
560
|
584
|
|
1,448
|
1,192
|
Operating cash flows
from discontinued operations
|
(26)
|
(3)
|
|
(72)
|
(13)
|
Net cash provided by
operating activities
|
534
|
581
|
|
1,376
|
1,179
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
Acquisitions, net of
cash acquired
|
(2)
|
(43)
|
|
(5)
|
(165)
|
Proceeds from
disposals of businesses and investments
|
13
|
-
|
|
28
|
1
|
Dividend from sale of
LSEG shares
|
-
|
-
|
|
994
|
-
|
Capital
expenditures
|
(131)
|
(117)
|
|
(364)
|
(404)
|
Proceeds from
disposals of property and equipment
|
-
|
98
|
|
-
|
162
|
Other investing
activities
|
3
|
-
|
|
56
|
2
|
Taxes paid on sale of
Refinitiv and LSEG shares
|
(218)
|
-
|
|
(662)
|
-
|
Investing cash flows
from continuing operations
|
(335)
|
(62)
|
|
47
|
(404)
|
Investing cash flows
from discontinued operations
|
(210)
|
-
|
|
(252)
|
-
|
Net cash used in
investing activities
|
(545)
|
(62)
|
|
(205)
|
(404)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
Proceeds from
debt
|
-
|
-
|
|
-
|
2,019
|
Repayments of
debt
|
-
|
-
|
|
-
|
(1,645)
|
Net borrowings under
short-term loan facilities
|
-
|
(120)
|
|
-
|
(2)
|
Payments of lease
principal
|
(22)
|
(20)
|
|
(65)
|
(56)
|
Repurchases of common
shares
|
(603)
|
-
|
|
(803)
|
(200)
|
Dividends paid on
preference shares
|
(1)
|
(1)
|
|
(2)
|
(2)
|
Dividends paid on
common shares
|
(194)
|
(183)
|
|
(582)
|
(547)
|
Other financing
activities
|
3
|
6
|
|
8
|
(10)
|
Net cash used in
financing activities
|
(817)
|
(318)
|
|
(1,444)
|
(443)
|
(Decrease) increase
in cash and bank overdrafts
|
(828)
|
201
|
|
(273)
|
332
|
Translation
adjustments
|
(3)
|
5
|
|
(3)
|
(5)
|
Cash and bank
overdrafts at beginning of period
|
2,342
|
946
|
|
1,787
|
825
|
Cash and bank
overdrafts at end of period
|
$1,511
|
$1,152
|
|
$1,511
|
$1,152
|
Cash and bank
overdrafts at end of period comprised of:
|
|
|
|
|
|
Cash and cash
equivalents
|
$1,511
|
$1,152
|
|
$1,511
|
$1,152
|
Thomson Reuters
Corporation
|
Reconciliation of
(Loss) Earnings from Continuing Operations to Adjusted
EBITDA(1)
|
(millions of U.S.
dollars, except for margins)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings
from continuing operations
|
$(241)
|
$240
|
|
$5,864
|
$562
|
|
|
Adjustments to
remove:
|
|
|
|
|
|
|
|
Tax (benefit)
expense
|
(161)
|
(147)
|
|
1,722
|
(84)
|
|
|
Other finance
income
|
(34)
|
(2)
|
|
(30)
|
(36)
|
|
|
Net interest
expense
|
46
|
49
|
|
146
|
146
|
|
|
Amortization of other
identifiable intangible assets
|
29
|
32
|
|
90
|
92
|
|
|
Amortization of
computer software
|
119
|
133
|
|
356
|
362
|
|
|
Depreciation
|
40
|
61
|
|
128
|
144
|
|
|
EBITDA
|
$(202)
|
$366
|
|
$8,276
|
$1,186
|
|
|
Adjustments to
remove:
|
|
|
|
|
|
|
|
Share of post-tax
losses (earnings) in equity method investments
|
672
|
178
|
|
(6,717)
|
385
|
|
|
Other operating gains,
net
|
(4)
|
(56)
|
|
(35)
|
(104)
|
|
|
Fair value
adjustments(4)
|
(8)
|
3
|
|
(6)
|
(17)
|
|
|
Adjusted
EBITDA(1)
|
$458
|
$491
|
|
$1,518
|
$1,450
|
|
|
Adjusted EBITDA
margin(1)
|
30.0%
|
34.0%
|
|
32.7%
|
33.2%
|
|
|
Thomson Reuters
Corporation
|
Reconciliation of
Net (Loss) Earnings to Adjusted
Earnings(2)
|
Reconciliation of
Total Change in Adjusted EPS(2) to
Change in Constant Currency(5)
|
(millions of U.S.
dollars, except for share and per share data)
|
(unaudited)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
|
2021
|
2020
|
Change
|
|
2021
|
2020
|
Change
|
Net (loss)
earnings
|
$(240)
|
$241
|
|
|
$5,864
|
$560
|
|
Adjustments to
remove:
|
|
|
|
|
|
|
|
Fair value adjustments
(4)
|
(8)
|
3
|
|
|
(6)
|
(17)
|
|
Amortization of other
identifiable intangible assets
|
29
|
32
|
|
|
90
|
92
|
|
Other operating gains,
net
|
(4)
|
(56)
|
|
|
(35)
|
(104)
|
|
Other finance
income
|
(34)
|
(2)
|
|
|
(30)
|
(36)
|
|
Share of post-tax
losses (earnings) in equity method investments
|
672
|
178
|
|
|
(6,717)
|
385
|
|
Tax on above
items
|
(174)
|
(41)
|
|
|
1,616
|
(100)
|
|
Tax items impacting
comparability
|
(4)
|
(146)
|
|
|
(15)
|
(107)
|
|
(Earnings) loss from
discontinued operations, net of tax
|
(1)
|
(1)
|
|
|
-
|
2
|
|
Interim period
effective tax rate normalization(3)
|
(8)
|
(15)
|
|
|
(10)
|
(21)
|
|
Dividends declared on
preference shares
|
(1)
|
(1)
|
|
|
(2)
|
(2)
|
|
Adjusted
earnings(2)
|
$227
|
$192
|
|
|
$755
|
$652
|
|
Adjusted EPS
(2)
|
$0.46
|
$0.39
|
18%
|
|
$1.52
|
$1.31
|
16%
|
Foreign
currency(5)
|
|
|
3%
|
|
|
|
1%
|
Constant
currency(5)
|
|
|
15%
|
|
|
|
15%
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares (millions)(2)
|
495.9
|
498.4
|
|
|
496.6
|
497.8
|
|
Refer to page 23 for footnotes.
Thomson Reuters
Corporation
|
|
Reconciliation of
Net Cash Provided by Operating Activities to Free Cash
Flow(6)
|
|
(millions of U.S.
dollars)
|
|
(unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
2020
|
|
2021
|
2020
|
Net cash provided
by operating activities
|
$534
|
$581
|
|
$1,376
|
$1,179
|
Capital
expenditures
|
(131)
|
(117)
|
|
(364)
|
(404)
|
Proceeds from
disposals of property and equipment
|
-
|
98
|
|
-
|
162
|
Other investing
activities
|
3
|
-
|
|
56
|
2
|
Payments of lease
principal
|
(22)
|
(20)
|
|
(65)
|
(56)
|
Dividends paid on
preference shares
|
(1)
|
(1)
|
|
(2)
|
(2)
|
Free cash flow
(6)
|
$383
|
$541
|
|
$1,001
|
$881
|
|
|
|
|
|
|
|
Thomson Reuters
Corporation
|
Reconciliation of
Net Debt and Leverage Ratio of Net Debt to Adjusted
EBITDA(8)
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
|
September
30,
2021
|
Long-term
indebtedness
|
|
$3,782
|
Total
debt
|
|
3,782
|
Swaps
|
|
(97)
|
Total debt after
swaps
|
|
3,685
|
Remove fair value
adjustments for hedges
|
|
(9)
|
Total debt after
currency arrangements
|
|
3,676
|
Remove transaction
costs, premiums or discounts included in the carrying value of
debt
|
|
35
|
Add: lease
liabilities (current and non-current)
|
|
268
|
Less: cash and cash
equivalents
|
|
(1,511)
|
Net debt
(8)
|
|
$2,468
|
|
|
|
Adjusted
EBITDA(1)*
|
|
$2,043
|
Net Debt /
Adjusted EBITDA(8)*
|
|
1.2:1
|
* The company's target leverage ratio of 2.5:1 is a non-IFRS
measure. For purposes of this calculation, adjusted EBITDA is
computed on a rolling 12-month basis and includes adjusted EBITDA
of $458 million, $502 million, $558
million and $525 million for
the three months ended September 30,
2021, June 30, 2021,
March 31, 2021 and December 31, 2020, respectively. Refer to the
tables appended to this news release, the company's 2020 annual
report and the company's MD&A for the three months ended
June 30, 2021 and March 31, 2021 for additional information
regarding the calculation of adjusted EBITDA in each of these
periods.
Refer to page 23 for footnotes.
Thomson Reuters
Corporation
|
Reconciliation of
Changes in Revenues to Changes in Revenues on a Constant
Currency(5) and Organic
Basis(7)
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
|
September
30,
|
|
Change
|
|
|
2021
|
2020
|
|
Total
|
Foreign
Currency
|
SUBTOTAL Constant
Currency(5)
|
Acquisitions/
(Divestitures)
|
Organic(7)
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$682
|
$636
|
|
7%
|
1%
|
6%
|
0%
|
6%
|
Corporates
|
|
356
|
333
|
|
7%
|
1%
|
6%
|
0%
|
6%
|
Tax &
Accounting Professionals
|
|
175
|
165
|
|
6%
|
0%
|
6%
|
0%
|
6%
|
"Big 3" Segments
Combined
|
|
1,213
|
1,134
|
|
7%
|
1%
|
6%
|
0%
|
6%
|
Reuters
News
|
|
164
|
154
|
|
6%
|
0%
|
6%
|
0%
|
6%
|
Global
Print
|
|
149
|
154
|
|
-3%
|
1%
|
-5%
|
0%
|
-5%
|
Eliminations/Rounding
|
|
-
|
1
|
|
|
|
|
|
|
Revenues
|
|
$1,526
|
$1,443
|
|
6%
|
1%
|
5%
|
0%
|
5%
|
|
|
|
|
|
|
|
|
|
|
Recurring
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$634
|
$592
|
|
7%
|
1%
|
6%
|
0%
|
6%
|
Corporates
|
|
309
|
287
|
|
8%
|
1%
|
7%
|
0%
|
7%
|
Tax &
Accounting Professionals
|
|
147
|
133
|
|
10%
|
0%
|
10%
|
0%
|
10%
|
"Big 3" Segments
Combined
|
|
1,090
|
1,012
|
|
8%
|
1%
|
7%
|
0%
|
7%
|
Reuters
News
|
|
143
|
141
|
|
1%
|
0%
|
1%
|
0%
|
1%
|
Total Recurring
Revenues
|
|
$1,233
|
$1,153
|
|
7%
|
1%
|
6%
|
0%
|
6%
|
|
|
|
|
|
|
|
|
|
|
Transactions
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$48
|
$44
|
|
11%
|
1%
|
10%
|
-1%
|
10%
|
Corporates
|
|
47
|
46
|
|
2%
|
0%
|
2%
|
0%
|
2%
|
Tax &
Accounting Professionals
|
|
28
|
32
|
|
-9%
|
0%
|
-9%
|
0%
|
-9%
|
"Big 3" Segments
Combined
|
|
123
|
122
|
|
2%
|
1%
|
2%
|
0%
|
2%
|
Reuters
News
|
|
21
|
13
|
|
62%
|
-5%
|
66%
|
0%
|
66%
|
Total Transactions
Revenues
|
|
$144
|
$135
|
|
8%
|
0%
|
8%
|
0%
|
8%
|
|
|
|
|
|
|
|
|
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(5) and Organic
Basis(7)
|
|
(millions of U.S.
dollars)
|
|
(unaudited)
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
Change
|
|
|
|
2021
|
2020
|
|
Total
|
Foreign
Currency
|
SUBTOTAL Constant
Currency(5)
|
Acquisitions/
(Divestitures)
|
Organic(7)
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$2,023
|
$1,882
|
|
7%
|
1%
|
6%
|
0%
|
6%
|
Corporates
|
|
1,088
|
1,029
|
|
6%
|
1%
|
5%
|
0%
|
5%
|
Tax &
Accounting Professionals
|
|
597
|
551
|
|
8%
|
0%
|
8%
|
0%
|
8%
|
"Big 3" Segments
Combined
|
|
3,708
|
3,462
|
|
7%
|
1%
|
6%
|
0%
|
6%
|
Reuters
News
|
|
492
|
464
|
|
6%
|
1%
|
5%
|
0%
|
5%
|
Global
Print
|
|
439
|
443
|
|
-1%
|
2%
|
-3%
|
0%
|
-3%
|
Eliminations/Rounding
|
|
(1)
|
(1)
|
|
|
|
|
|
|
Revenues
|
|
$4,638
|
$4,368
|
|
6%
|
1%
|
5%
|
0%
|
5%
|
|
|
|
|
|
|
|
|
|
|
Recurring
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$1,881
|
$1,759
|
|
7%
|
1%
|
6%
|
0%
|
5%
|
Corporates
|
|
904
|
850
|
|
6%
|
1%
|
5%
|
0%
|
5%
|
Tax &
Accounting Professionals
|
|
457
|
427
|
|
7%
|
0%
|
7%
|
0%
|
7%
|
"Big 3" Segments
Combined
|
|
3,242
|
3,036
|
|
7%
|
1%
|
6%
|
0%
|
6%
|
Reuters
News
|
|
431
|
424
|
|
2%
|
1%
|
0%
|
0%
|
0%
|
Total Recurring
Revenues
|
|
$3,673
|
$3,460
|
|
6%
|
1%
|
5%
|
0%
|
5%
|
|
|
|
|
|
|
|
|
|
|
Transactions
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$142
|
$123
|
|
16%
|
3%
|
14%
|
0%
|
14%
|
Corporates
|
|
184
|
179
|
|
3%
|
0%
|
3%
|
0%
|
3%
|
Tax &
Accounting Professionals
|
|
140
|
124
|
|
13%
|
1%
|
12%
|
0%
|
12%
|
"Big 3" Segments
Combined
|
|
466
|
426
|
|
10%
|
1%
|
9%
|
0%
|
9%
|
Reuters
News
|
|
61
|
40
|
|
52%
|
2%
|
50%
|
1%
|
50%
|
Total Transactions
Revenues
|
|
$527
|
$466
|
|
13%
|
1%
|
12%
|
0%
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(1) to Changes on a Constant
Currency Basis(5)
|
|
(millions of U.S.
dollars)
|
|
(unaudited)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
Change
|
|
|
|
2021
|
2020
|
|
Total
|
Foreign
Currency
|
Constant
Currency(5)
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$288
|
$272
|
|
6%
|
2%
|
4%
|
Corporates
|
|
131
|
120
|
|
9%
|
1%
|
9%
|
Tax &
Accounting Professionals
|
|
49
|
47
|
|
4%
|
-1%
|
6%
|
"Big 3" Segments
Combined
|
|
468
|
439
|
|
7%
|
1%
|
6%
|
Reuters
News
|
|
25
|
23
|
|
4%
|
-4%
|
8%
|
Global
Print
|
|
52
|
64
|
|
-18%
|
1%
|
-19%
|
Corporate
costs
|
|
(87)
|
(35)
|
|
n/a
|
n/a
|
n/a
|
Adjusted
EBITDA
|
|
$458
|
$491
|
|
-7%
|
1%
|
-7%
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
42.3%
|
42.8%
|
|
-50bp
|
30bp
|
-80bp
|
Corporates
|
|
36.8%
|
36.0%
|
|
80bp
|
0bp
|
80bp
|
Tax &
Accounting Professionals
|
|
28.0%
|
28.5%
|
|
-50bp
|
-30bp
|
-20bp
|
"Big 3" Segments
Combined
|
|
38.6%
|
38.7%
|
|
-10bp
|
10bp
|
-20bp
|
Reuters
News
|
|
14.9%
|
15.2%
|
|
-30bp
|
-50bp
|
20bp
|
Global
Print
|
|
35.0%
|
41.1%
|
|
-610bp
|
20bp
|
-630bp
|
Corporate
costs
|
|
n/a
|
n/a
|
|
n/a
|
n/a
|
n/a
|
Adjusted EBITDA
margin
|
|
30.0%
|
34.0%
|
|
-400bp
|
10bp
|
-410bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/a: not applicable
Growth percentages and margins are computed using whole
dollars. As a result, percentages and margins calculated from
reported amounts may differ from those presented, and growth
components may not total due to rounding.
Refer to page 23 for footnotes.
Thomson Reuters
Corporation
|
|
Reconciliation of
Changes in Adjusted EBITDA(1) to Changes on a Constant
Currency Basis(5)
|
|
(millions of U.S.
dollars)
|
|
(unaudited)
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
Change
|
|
|
|
2021
|
2020
|
|
Total
|
Foreign
Currency
|
Constant
Currency(5)
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$852
|
$756
|
|
13%
|
2%
|
11%
|
Corporates
|
|
407
|
355
|
|
15%
|
1%
|
14%
|
Tax &
Accounting Professionals
|
|
219
|
185
|
|
18%
|
0%
|
18%
|
"Big 3" Segments
Combined
|
|
1,478
|
1,296
|
|
14%
|
1%
|
13%
|
Reuters
News
|
|
88
|
67
|
|
30%
|
-14%
|
44%
|
Global
Print
|
|
165
|
181
|
|
-9%
|
2%
|
-11%
|
Corporate
costs
|
|
(213)
|
(94)
|
|
n/a
|
n/a
|
n/a
|
Adjusted
EBITDA
|
|
$1,518
|
$1,450
|
|
5%
|
1%
|
4%
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
42.1%
|
40.2%
|
|
190bp
|
10bp
|
180bp
|
Corporates
|
|
37.4%
|
34.5%
|
|
290bp
|
-20bp
|
310bp
|
Tax &
Accounting Professionals
|
|
36.6%
|
33.6%
|
|
300bp
|
-10bp
|
310bp
|
"Big 3" Segments
Combined
|
|
39.9%
|
37.4%
|
|
250bp
|
20bp
|
230bp
|
Reuters
News
|
|
17.8%
|
14.5%
|
|
330bp
|
-210bp
|
540bp
|
Global
Print
|
|
37.5%
|
40.7%
|
|
-320bp
|
20bp
|
-340bp
|
Corporate
costs
|
|
n/a
|
n/a
|
|
n/a
|
n/a
|
n/a
|
Adjusted EBITDA
margin
|
|
32.7%
|
33.2%
|
|
-50bp
|
-20bp
|
-30bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/a: not applicable
Growth percentages and margins are computed using whole
dollars. As a result, percentages and margins calculated from
reported amounts may differ from those presented, and growth
components may not total due to rounding.
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.
|
|
|
|
Because Thomson
Reuters reported a net loss for continuing operations under IFRS
for the three months ended September 30, 2021, the weighted-average
number of common shares used for basic and diluted loss per share
is the same for all per-share calculations in the period, as the
effect of stock options and other equity incentive awards would
reduce the loss per share, and therefore be anti-dilutive. Since
the company's non-IFRS measure "adjusted earnings" is a profit,
potential common shares are included, as they lower adjusted EPS
and are therefore dilutive.
|
|
|
|
The following table
reconciles IFRS and non-IFRS common share information:
|
|
|
|
(weighted-average common shares)
|
Three Months Ended
September 30, 2021
|
|
|
|
|
IFRS: Basic and Diluted
|
494,624,854
|
|
Effect of stock options and other equity incentive
awards
|
1,275,150
|
|
Non-IFRS Diluted
|
495,900,004
|
|
|
|
(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)
|
Fair value
adjustments primarily represent gains or losses due to changes in
foreign currency exchange rates on intercompany balances that arise
in the ordinary course of business.
|
|
|
(5)
|
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.
|
|
|
(6)
|
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 and dividends paid on the
company's preference shares. 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.
|
|
|
(7)
|
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.
|
|
|
(8)
|
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.
|
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SOURCE Thomson Reuters