TORONTO, Feb. 8, 2022 /PRNewswire/ -- Thomson Reuters
(TSX/NYSE: TRI) today reported results for the fourth quarter and
full year ended December 31,
2021:
- Strong revenue and sales growth for the fourth quarter and full
year
-
- Full-year total company revenue up 6% / organic revenue up
5%
- Fourth-quarter total company revenue up 6% / organic revenue up
6%
-
- Organic revenue up 7% for the "Big 3" (Legal Professionals,
Corporates, and Tax & Accounting Professionals)
- Global Legal, Tax, Risk, Fraud & Compliance markets
continue to be robust, providing a tailwind
- Raised 2022/2023 guidance for organic revenue growth, adjusted
EBITDA margin and free cash flow
- Change Program on track - $217
million run-rate operating expense savings at year-end
- Increased annualized dividend per share by 10% (29th
consecutive annual increase/largest increase since 2008)
"The momentum we saw in the first nine months of the year
continued in the fourth quarter. Revenue and sales growth were
again strong and exceeded our expectations, enabling us to finish
the year on a solid footing. Our performance has increased momentum
moving into 2022, helping to build confidence as we work to achieve
our higher 2022 and 2023 targets," said Steve Hasker, President and CEO of Thomson
Reuters.
Mr. Hasker added, "Our professional markets continue to grow
helped by a significant global shift by customers to upgrade Legal,
Tax and Risk, Fraud and Compliance products. Our products are
proving well suited to enable them to effectively serve their
clients. We are targeting investment in products that are driving
faster growth and where we have strong positions in growing
markets, and we continue to look to supplement organic growth with
targeted acquisitions that can bolster our positions and where we
are an advantaged owner. We look forward to continued progress in
2022 as we work to further strengthen our positions across our
businesses."
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)
|
2021
|
2020
|
Change
|
Change at
Constant
Currency
|
Revenues
|
$1,710
|
$1,616
|
6%
|
|
Operating
profit
|
$257
|
$956
|
-73%
|
|
Diluted (loss)
earnings per share (EPS)
|
$(0.36)
|
$1.13
|
n/m
|
|
Net cash provided by
operating activities
|
$397
|
$566
|
-30%
|
|
Non-IFRS Financial
Measures(1)
|
|
|
|
|
Revenues
|
$1,710
|
$1,616
|
6%
|
6%
|
Adjusted
EBITDA
|
$452
|
$525
|
-14%
|
-14%
|
Adjusted EBITDA
margin
|
26.4%
|
32.5%
|
-610bp
|
-610bp
|
Adjusted
EPS
|
$0.43
|
$0.54
|
-20%
|
-20%
|
Free cash
flow
|
$255
|
$449
|
-43%
|
|
(1) In addition to
results reported in accordance with International Financial
Reporting Standards (IFRS), the company uses certain non-IFRS
financial measures as supplemental indicators of its operating
performance and financial position. See "Non-IFRS Financial
Measures" section and the tables appended to this news release for
additional information on these and other non-IFRS financial
measures, including how they are defined and reconciled to the most
directly comparable IFRS measures.
n/m: not
meaningful
|
Revenues increased 6%, before and after the impact of
foreign currency, driven by growth across four of the company's
five business segments.
- Organic revenues increased 6%, driven by 6% growth in recurring
revenues (80% of total revenues), as well as 16% growth in
transactions revenues. Global Print revenues declined 4%.
- The company's "Big 3" segments (Legal Professionals, Corporates
and Tax & Accounting Professionals) reported organic revenue
growth of 7% and collectively comprised 79% of total revenues.
Operating profit decreased 73%, primarily because the
prior year included significant gains from the sale of an
investment and an amendment to a pension plan. Additionally, higher
revenues were more than offset by higher costs, primarily related
to investments associated with the company's Change Program and
higher performance bonus expense. Information regarding the Change
Program is provided later in this news release.
Fourth-quarter costs also included a $25
million investment to better position the business for 2022,
which was allocated to go-to-market and product development
initiatives, and data and analytics tools to improve the customer
experience.
- Adjusted EBITDA, which excludes the gains from the sale
of the investment and the pension plan amendment among other items,
declined 14% as higher revenues were more than offset by higher
costs. The related margin decreased to 26.4% from 32.5% primarily
due to higher costs, including those associated with the Change
Program, which negatively impacted the margin by 470bp.
Diluted loss per share was $0.36 compared to diluted earnings per share of
$1.13 in the prior-year period due to
lower operating profit and a decrease in value of the company's
LSEG investment, which is discussed in more detail in the "London
Stock Exchange Group (LSEG) Ownership Interest" section of this
news release.
- Adjusted EPS, which excludes the change in value of the
company's LSEG investment, as well as other adjustments, decreased
to $0.43 per share from $0.54 per share in the prior-year period
primarily due to lower adjusted EBITDA. Adjusted EPS was
$0.04 lower due to the $25 million of additional investment previously
noted.
Net cash provided by operating activities decreased as
higher revenues were more than offset by higher expenses, which
included Change Program costs, and unfavorable movements in working
capital.
- Free cash flow decreased $194
million due to lower cash flow from operating
activities.
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
|
|
|
2021
|
2020
|
|
Total
|
Constant
Currency(1)
|
Organic(1)(2)
|
Revenues
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$689
|
$653
|
|
5%
|
5%
|
6%
|
Corporates
|
|
361
|
338
|
|
7%
|
7%
|
7%
|
Tax &
Accounting Professionals
|
|
309
|
285
|
|
9%
|
9%
|
9%
|
"Big 3" Segments
Combined(1)
|
|
1,359
|
1,276
|
|
6%
|
7%
|
7%
|
Reuters
News
|
|
182
|
164
|
|
11%
|
12%
|
12%
|
Global
Print
|
|
170
|
177
|
|
-4%
|
-4%
|
-4%
|
Eliminations/Rounding
|
|
(1)
|
(1)
|
|
|
|
|
Revenues
|
|
$1,710
|
$1,616
|
|
6%
|
6%
|
6%
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$239
|
$245
|
|
-3%
|
-2%
|
|
Corporates
|
|
95
|
105
|
|
-10%
|
-10%
|
|
Tax &
Accounting Professionals
|
|
154
|
145
|
|
6%
|
7%
|
|
"Big 3" Segments
Combined(1)
|
|
488
|
495
|
|
-2%
|
-1%
|
|
Reuters
News
|
|
15
|
6
|
|
139%
|
107%
|
|
Global
Print
|
|
61
|
61
|
|
0%
|
-1%
|
|
Corporate
costs
|
|
(112)
|
(37)
|
|
n/a
|
n/a
|
|
Adjusted
EBITDA
|
|
$452
|
$525
|
|
-14%
|
-14%
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
34.5%
|
37.5%
|
|
-300bp
|
-270bp
|
|
Corporates
|
|
26.3%
|
31.1%
|
|
-480bp
|
-480bp
|
|
Tax &
Accounting Professionals
|
|
49.8%
|
51.1%
|
|
-130bp
|
-120bp
|
|
"Big 3" Segments
Combined(1)
|
|
35.8%
|
38.8%
|
|
-300bp
|
-280bp
|
|
Reuters
News
|
|
8.3%
|
3.9%
|
|
440bp
|
450bp
|
|
Global
Print
|
|
35.9%
|
34.6%
|
|
130bp
|
110bp
|
|
Corporate
costs
|
|
n/a
|
n/a
|
|
n/a
|
n/a
|
|
Adjusted EBITDA
margin
|
|
26.4%
|
32.5%
|
|
-610bp
|
-610bp
|
|
|
(1) See
"Non-IFRS Financial Measures" section and the tables appended to
this news release for additional information on these and other
non-IFRS financial measures.
(2) Computed
for revenue growth only.
n/a: not
applicable
|
|
Unless otherwise noted, all revenue growth comparisons by
customer segment in this news release are at constant
currency (or exclude the impact of foreign currency) as
Thomson Reuters believes this provides the best basis to measure
their performance.
Legal Professionals
Revenues increased 5% (6% organic) to $689 million.
- Recurring revenues grew 5% (93% of total, 6% organic),
primarily due to strong performances from Practical Law, Elite,
FindLaw and the Government business, as well as contributions from
the company's Canadian, European and Latin American
businesses.
- Transactions revenues grew 4% (7% of total, 6% organic),
primarily related to the Elite, Government, and Asia and Emerging Markets businesses.
Adjusted EBITDA decreased 3% to $239 million.
- The margin decreased to 34.5% from 37.5%, primarily due to
higher performance bonus expense.
Corporates
Revenues increased 7% (all organic) to $361 million.
- Recurring revenues grew 7% (87% of total, all organic) driven
by Practical Law, Indirect Tax, CLEAR and Legal software, as well
as the company's businesses in Latin
America.
- Transactions revenues grew 4% (13% of total, all organic).
Adjusted EBITDA decreased 10% to $95 million.
- The margin decreased to 26.3% from 31.1%, primarily due to
higher performance bonus expense.
Tax & Accounting Professionals
Revenues increased 9% (all organic) to $309 million.
- Recurring revenues grew 9% (89% of total, all organic), driven
by strong growth from Audit Solutions, Tax Compliance and the
company's Latin America
businesses.
- Transactions revenues increased 10% (11% of total, all
organic).
Adjusted EBITDA increased 6% to $154 million.
- The margin decreased to 49.8% from 51.1%, primarily due to
higher performance bonus expense.
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 $182
million increased 12% (all organic), driven by growth in all
businesses, including Reuters Events as it continues to recover
from the negative impact from COVID-19 in 2020.
Adjusted EBITDA increased 139% to $15 million, primarily due to higher
revenues.
Global Print
Revenues decreased 4% to $170
million.
Adjusted EBITDA was unchanged from the prior-year period
at $61 million.
- The margin increased to 35.9% from 34.6% due to year-over-year
timing of expenses.
Corporate Costs
Corporate costs at the adjusted EBITDA level were
$112 million and included
$78 million of Change Program costs.
Corporate costs were $37 million in
the prior-year period. Additional information regarding the Change
Program is provided below.
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)
|
2021
|
2020
|
Change
|
Change at
Constant
Currency
|
Revenues
|
$6,348
|
$5,984
|
6%
|
|
Operating
profit
|
$1,242
|
$1,929
|
-36%
|
|
Diluted earnings per
share (EPS)
|
$11.50
|
$2.25
|
n/m
|
|
Net cash provided by
operating activities
|
$1,773
|
$1,745
|
2%
|
|
Non-IFRS Financial
Measures(1)
|
|
|
|
|
Revenues
|
$6,348
|
$5,984
|
6%
|
5%
|
Adjusted
EBITDA
|
$1,970
|
$1,975
|
0%
|
-1%
|
Adjusted EBITDA
margin
|
31.0%
|
33.0%
|
-200bp
|
-190bp
|
Adjusted
EPS
|
$1.95
|
$1.85
|
5%
|
5%
|
Free cash
flow
|
$1,256
|
$1,330
|
-6%
|
|
(1) In
addition to results reported in accordance with IFRS, the company
uses certain non-IFRS financial measures as supplemental indicators
of its operating performance and financial position. See "Non-IFRS
Financial Measures" section and the tables appended to this news
release for additional information on these and other non-IFRS
financial measures, including how they are defined and reconciled
to the most directly comparable IFRS measures.
n/m: not
meaningful
|
Revenues increased 6% driven by 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 13% growth
in transactions revenues. Global Print revenues declined.
-
- Organic growth of 5% included an approximate 100bp benefit
resulting from easier year-over-year comparisons due to the
negative impact of COVID-19 on the business in 2020.
- The company's "Big 3" segments, which collectively comprised
80% of total revenues, reported organic revenue growth of 6%.
Operating profit declined 36%, primarily because the
prior year included significant gains from the sale of an
investment and from an amendment to a pension plan.
- Adjusted EBITDA, which excludes the gains from the sale
of the investment and the pension plan amendment among other
items, was unchanged on a year-over-year basis as higher
revenues were offset by higher costs, which included investments
associated with the company's Change Program and higher performance
bonus expense. The related margin decreased to 31.0% from 33.0% in
the prior year. Adjusted EBITDA margin was negatively impacted by
290bp due to Change Program costs.
Diluted EPS increased to $11.50 per share from $2.25 per share in the prior year 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 and other adjustments, increased to $1.95 per share from $1.85 per share in the prior year, primarily due
to lower depreciation and software amortization and lower income
tax expense.
Net cash provided by operating activities increased as
higher revenues more than offset higher tax payments and
expenses, which included Change Program costs.
- Free cash flow decreased by $74
million as higher cash flows from operating activities were
more than offset by a prior-year benefit from the proceeds
associated with the sale of real estate.
Highlights by Customer Segment – Year Ended December 31
(Millions of U.S.
dollars, except for adjusted EBITDA margins)
(unaudited)
|
|
|
Year Ended December
31,
|
|
Change
|
|
|
2021
|
2020
|
|
Total
|
Constant
Currency(1)
|
Organic(1)(2)
|
Revenues
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$2,712
|
$2,535
|
|
7%
|
6%
|
6%
|
Corporates
|
|
1,449
|
1,367
|
|
6%
|
5%
|
5%
|
Tax &
Accounting Professionals
|
|
906
|
836
|
|
8%
|
9%
|
9%
|
"Big 3" Segments
Combined(1)
|
|
5,067
|
4,738
|
|
7%
|
6%
|
6%
|
Reuters
News
|
|
674
|
628
|
|
7%
|
7%
|
7%
|
Global
Print
|
|
609
|
620
|
|
-2%
|
-3%
|
-3%
|
Eliminations/Rounding
|
|
(2)
|
(2)
|
|
|
|
|
Revenues
|
|
$6,348
|
$5,984
|
|
6%
|
5%
|
5%
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$1,091
|
$1,001
|
|
9%
|
7%
|
|
Corporates
|
|
502
|
460
|
|
9%
|
9%
|
|
Tax &
Accounting Professionals
|
|
373
|
330
|
|
13%
|
13%
|
|
"Big 3" Segments
Combined(1)
|
|
1,966
|
1,791
|
|
10%
|
9%
|
|
Reuters
News
|
|
103
|
73
|
|
40%
|
51%
|
|
Global
Print
|
|
226
|
242
|
|
-7%
|
-8%
|
|
Corporate
costs
|
|
(325)
|
(131)
|
|
n/a
|
n/a
|
|
Adjusted
EBITDA
|
|
$1,970
|
$1,975
|
|
0%
|
-1%
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
40.2%
|
39.5%
|
|
70bp
|
50bp
|
|
Corporates
|
|
34.6%
|
33.7%
|
|
90bp
|
100bp
|
|
Tax &
Accounting Professionals
|
|
41.1%
|
39.5%
|
|
160bp
|
170bp
|
|
"Big 3" Segments
Combined(1)
|
|
38.8%
|
37.8%
|
|
100bp
|
90bp
|
|
Reuters
News
|
|
15.2%
|
11.7%
|
|
350bp
|
500bp
|
|
Global
Print
|
|
37.1%
|
39.0%
|
|
-190bp
|
-210bp
|
|
Corporate
costs
|
|
n/a
|
n/a
|
|
n/a
|
n/a
|
|
Adjusted EBITDA
margin
|
|
31.0%
|
33.0%
|
|
-200bp
|
-190bp
|
|
|
(1) See
"Non-IFRS Financial Measures" section and the tables appended to
this news release for additional information on these and other
non-IFRS financial measures.
(2) Computed
for revenue growth only.
n/a: not
applicable
|
|
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 company is 12 months into
the program, which is expected to be largely complete by the end of
2022. The program is projected to require an investment of
approximately $600 million during
that time of which $295 million was
invested in 2021.
The company's updated outlook for 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. The company expects
its first-quarter 2022 revenue growth rate and adjusted EBITDA
margin will be comparable to its full-year 2022 outlook
targets.
While the company's full-year 2021 performance provides it with
increasing confidence about its outlook, the global economy has
recently experienced substantial disruption due to concerns
regarding resurgences and new strains of COVID-19, measures
intended to mitigate the pandemic's impact, and other events and
macroeconomic factors. Any worsening of the global economic or
business environment could impact the company's ability to achieve
its outlook.
Reported Full-Year 2021 and Updated Full-Year 2022 – 2023
Outlook
Total Thomson
Reuters
|
FY 2021
Reported
|
2/23/21
FY
2022
Outlook
|
2/23/21
FY
2023
Outlook
|
2/8/22
FY
2022
Outlook
|
2/8/22
FY
2023
Outlook
|
Total Revenue
Growth
|
6.1%
|
4.0% -
5.0%
|
5.0% -
6.0%
|
~ 5%
|
5.5% -
6.0%
|
Organic Revenue
Growth(1)
|
5.2%
|
4.0% -
5.0%
|
5.0% -
6.0%
|
~ 5%
|
5.5% -
6.0%
|
Adjusted EBITDA
Margin(1)
|
31.0%
|
34% - 35%
|
38% – 40%
|
~ 35%
|
39% - 40%
|
Corporate
Costs
Core Corporate
Costs
Change Program
Opex
|
$325
million
$142
million
$183
million
|
$245 - $280
million
$120 - $130
million
$125 - $150
million
|
$110 - $120
million
$110 - $120
million
$0
|
$280 - $330
million
Unchanged
$160 - $200
million
|
Unchanged
Unchanged
Unchanged
|
Free Cash
Flow(1)
|
$1.3
billion
|
$1.2 - $1.3
billion
|
$1.8 - $2.0
billion
|
~ $1.3
billion
|
$1.9 – $2.0
billion
|
Accrued Capex as % of
Revenue(1)
Change Program Accrued
Capex
|
8.5%
$112
million
|
7.5% -
8.0%
$75 - $100
million
|
6.0% -
6.5%
$0
|
Unchanged
$100 - $140
million
|
Unchanged
Unchanged
|
Depreciation &
Amortization of
Computer
Software
|
$651
million
|
$620 - $645
million
|
$580 - $605
million
|
Unchanged
|
Unchanged
|
Interest Expense
(P&L)
|
$196
million
|
$190 - $210
million
|
$190 - $210
million
|
Unchanged
|
Unchanged
|
Effective Tax Rate on
Adjusted Earnings(1)
|
13.9%
|
n/a
|
n/a
|
19% - 21%
|
n/a
|
"Big
3"(1)
|
FY 2021
Reported
|
2/23/21
FY
2022
Outlook
|
2/23/21
FY
2023
Outlook
|
2/8/22
FY
2022
Outlook
|
2/8/22
FY
2023
Outlook
|
Total Revenue Growth
|
6.9%
|
5.5% -
6.5%
|
6.0% -
7.0%
|
6.0% -
6.5%
|
6.5% -
7.0%
|
Organic Revenue
Growth
|
6.2%
|
5.5% -
6.5%
|
6.0% -
7.0%
|
6.0% -
6.5%
|
6.5% -
7.0%
|
Adjusted EBITDA
Margin
|
38.8%
|
41% - 42%
|
43% - 45%
|
~42%
|
44% – 45%
|
|
|
(1) Non-IFRS financial measures. See the
"Non-IFRS Financial Measures" section below as well as the tables
and footnotes appended to this news release for more
information.
|
The information in this section is
forward-looking. Actual results, which will include
the impact of currency and future acquisitions and dispositions
completed during 2022 and 2023, may differ materially from the
company's outlook. The information in this section
should also be read in conjunction with the section below entitled
"Special Note Regarding Forward-Looking Statements, Material Risks
and Material Assumptions."
Dividends and Share Repurchases
The company announced today that its Board of Directors approved
a 10% or $0.16 per share annualized
increase in the dividend to $1.78 per
common share, representing the 29th consecutive year of
dividend increases. A quarterly dividend of $0.445 per share is payable on March 15, 2022 to common shareholders of record
as of February 24, 2022.
In the fourth quarter of 2021, the company completed a
previously announced plan to buy back up to $1.2 billion of its common shares. This buyback
program was in addition to the $200
million repurchase program that was completed earlier in
2021. As of February 7, 2022, Thomson
Reuters had approximately 486.2 million common shares
outstanding.
In 2021, Thomson Reuters returned a total of $2.2 billion of cash to shareholders through
dividends and share repurchases.
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 February 7, 2022, Thomson
Reuters indirectly owned approximately 72.4 million LSEG shares
which had a market value of approximately $7.0 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 paid $223 million of tax on
the sale of these shares and used the after-tax proceeds to pay
$627 million of tax that became
payable when the Refinitiv sale closed. In 2021, the company paid
$850 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, which include ratios that incorporate one or more
non-IFRS financial measures, such as adjusted EBITDA and the
related margin (other than at the customer segment level), free
cash flow, adjusted EPS, accrued capital expenditures expressed as
a percentage of revenues, selected measures excluding the impact of
foreign currency, changes in revenues computed on an organic basis
as well as all financial measures for the "Big 3". Thomson Reuters
uses these non-IFRS financial measures as supplemental indicators
of its operating performance and financial position as well as for
internal planning purposes and the company's business outlook.
Additionally, Thomson Reuters uses non-IFRS measures as the basis
for management incentive programs. These measures do not have any
standardized meanings prescribed by IFRS and therefore are unlikely
to be comparable to the calculation of similar measures used by
other companies and should not be viewed as alternatives to
measures of financial performance calculated in accordance with
IFRS. Non-IFRS financial measures are defined and reconciled to the
most directly comparable IFRS measures in the appended
tables.
The company's outlook contains various non-IFRS financial
measures. The company believes that providing reconciliations of
forward-looking non-IFRS financial measures in its outlook would be
potentially misleading and not practical due to the difficulty of
projecting items that are not reflective of ongoing operations in
any future period. The magnitude of these items may be significant.
Consequently, for outlook purposes only, the company is unable to
reconcile these non-IFRS measures to the most directly comparable
IFRS measures because it cannot predict, with reasonable certainty,
the 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 and the "Thomson
Reuters Change Program and Outlook" section, are forward-looking.
The words "will", "expect", "believe", "target", "estimate",
"could", "should", "intend", "predict", "project" and similar
expressions identify forward-looking statements. While the company
believes that it has a reasonable basis for making forward-looking
statements in this news release, they are not a guarantee of future
performance or outcomes and there is no assurance that any of the
other events described in any forward-looking statement will
materialize. Forward-looking statements are subject to a number of
risks, uncertainties and assumptions that could cause actual
results or events to differ materially from current expectations.
Many of these risks, uncertainties and assumptions are beyond the
company's control and the effects of them can be difficult to
predict.
Some of the material risk factors that could cause actual
results or events to differ materially from those expressed in or
implied by forward-looking statements in this news release include,
but are not limited to, those discussed on pages 16-30 in the "Risk
Factors" section of the company's 2020 annual report. A "Risk
Factors" section will also be included in the company's 2021 annual
report, which the company plans to file in March. These and other
risk factors are discussed in materials that Thomson Reuters from
time-to-time files with, or furnishes to, the Canadian securities
regulatory authorities and the U.S. Securities and Exchange
Commission (SEC). Thomson Reuters annual and quarterly reports are
also available in the "Investor Relations" section of
tr.com.
The company's business outlook is based on information
currently available to the company and is based on various external
and internal assumptions made by the company in light of its
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors that the
company believes are appropriate under the circumstances. Material
assumptions and material risks may cause actual performance to
differ from the company's expectations underlying its business
outlook. For a discussion of material assumptions and material
risks related to the company's 2022 and 2023 updated outlook,
please see pages 22-23 of the company's third-quarter management's
discussion and analysis (MD&A) for the period ended
September 30, 2021. In addition to
those material assumptions and material risks, material assumptions
related to the company's updated 2022 and 2023 outlook include the
following updates: (i) the company's revenue outlook now assumes
that there will be improved global economic conditions throughout
2022 and 2023, despite periods of volatility due to disruption
caused by COVID-19, measures intended to mitigate the pandemic's
impact, and other events and macroeconomic factors; (ii) the
company's adjusted EBITDA margin outlook assumes Change Program
operating expenditures between $160
million and $200 million in
2022; (iii) the company's free cash flow outlook now assumes
accrued capital expenditures between 7.5% and 8% of revenues in
2022 and between 6% and 6.5% of revenues in 2023; and (iv) the
company's effective tax rate on adjusted earnings outlook now
assumes (a) the mix of taxing jurisdictions where the company
recognized pre-tax profit or losses in 2021 does not significantly
change; (b) there will be minimal changes in tax laws and treaties
within the jurisdictions where the company operates; (c) the
imposition of minimum taxes in various jurisdictions; (d) no
significant benefits from the finalization of prior tax years; (e)
depreciation and amortization of computer software between $620
million and $645 million in 2022; and (f) interest expense between
$190 million and $210 million in 2022. Material assumptions and
material risks related to the company's outlook will also be
included in the company's 2021 annual report, which the company
plans to file in March. The company's quarterly MD&A and annual
report are filed with, or furnished to, the Canadian securities
regulatory authorities and the U.S. SEC and are also available in
the "Investor Relations" section of tr.com.
The company has provided an updated Outlook for the purpose
of presenting information about current expectations for the
periods presented. This information may not be appropriate for
other purposes. You are cautioned not to place undue reliance on
forward-looking statements which reflect expectations only as of
the date of this news release.
Except as may be required by applicable law, Thomson Reuters
disclaims any obligation to update or revise any forward-looking
statements.
CONTACTS
MEDIA
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 2021 results and its two-year business
outlook today beginning at 9:00 a.m. Eastern
Standard Time (EST). You can access the webcast by
visiting ir.tr.com. An archive of the webcast will be available
following the presentation.
Thomson Reuters
Corporation
Consolidated
Income Statement
(millions of U.S.
dollars, except per share data)
(unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2021
|
2020
|
|
2021
|
2020
|
CONTINUING
OPERATIONS
|
|
|
|
|
|
Revenues
|
$1,710
|
$1,616
|
|
$6,348
|
$5,984
|
Operating
expenses
|
(1,256)
|
(1,098)
|
|
(4,370)
|
(3,999)
|
Depreciation
|
(49)
|
(40)
|
|
(177)
|
(184)
|
Amortization of
computer software
|
(118)
|
(123)
|
|
(474)
|
(485)
|
Amortization of other
identifiable intangible assets
|
(29)
|
(31)
|
|
(119)
|
(123)
|
Other operating
(losses) gains, net
|
(1)
|
632
|
|
34
|
736
|
Operating
profit
|
257
|
956
|
|
1,242
|
1,929
|
Finance costs,
net:
|
|
|
|
|
|
Net interest
expense
|
(50)
|
(49)
|
|
(196)
|
(195)
|
Other finance (costs)
income
|
(22)
|
(6)
|
|
8
|
30
|
Income before tax and
equity method investments
|
185
|
901
|
|
1,054
|
1,764
|
Share of post-tax
(losses) earnings in equity method investments
|
(477)
|
(159)
|
|
6,240
|
(544)
|
Tax benefit
(expense)
|
115
|
(155)
|
|
(1,607)
|
(71)
|
(Loss) earnings
from continuing operations
|
(177)
|
587
|
|
5,687
|
1,149
|
Earnings (loss) from
discontinued operations, net of tax
|
2
|
(25)
|
|
2
|
(27)
|
Net (loss)
earnings
|
$(175)
|
$562
|
|
$5,689
|
$1,122
|
(Loss) earnings
attributable to common shareholders
|
$(175)
|
$562
|
|
$5,689
|
$1,122
|
|
|
|
|
|
|
Earnings (loss)
per share:
|
|
|
|
|
|
Basic (loss) earnings
per share:
|
|
|
|
|
|
From
continuing operations
|
$(0.36)
|
$1.18
|
|
$11.52
|
$2.31
|
From
discontinued operations
|
-
|
(0.05)
|
|
0.01
|
(0.06)
|
Basic (loss) earnings
per share
|
$(0.36)
|
$1.13
|
|
$11.53
|
$2.25
|
|
|
|
|
|
|
Diluted (loss)
earnings per share:
|
|
|
|
|
|
From
continuing operations
|
$(0.36)
|
$1.18
|
|
$11.50
|
$2.30
|
From
discontinued operations
|
-
|
(0.05)
|
|
-
|
(0.05)
|
Diluted (loss)
earnings per share
|
$(0.36)
|
$1.13
|
|
$11.50
|
$2.25
|
|
|
|
|
|
|
Basic
weighted-average common shares
|
487,297,738
|
497,372,688
|
|
493,444,031
|
496,722,292
|
Diluted
weighted-average common shares
|
487,297,738
|
498,809,560
|
|
494,504,504
|
498,032,006
|
|
|
|
|
|
|
|
Thomson Reuters
Corporation
Consolidated
Statement of Financial Position
(millions of U.S.
dollars)
(unaudited)
|
|
|
December
31,
|
|
December
31,
|
2021
|
|
2020
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$778
|
|
$1,787
|
Trade and other
receivables
|
1,057
|
|
1,151
|
Other financial
assets
|
108
|
|
612
|
Prepaid expenses and
other current assets
|
510
|
|
425
|
Current
assets
|
2,453
|
|
3,975
|
|
|
|
|
Property and
equipment, net
|
502
|
|
545
|
Computer software,
net
|
822
|
|
830
|
Other identifiable
intangible assets, net
|
3,331
|
|
3,427
|
Goodwill
|
5,940
|
|
5,976
|
Equity method
investments
|
6,736
|
|
1,136
|
Other non-current
assets
|
1,226
|
|
788
|
Deferred
tax
|
1,139
|
|
1,204
|
Total
assets
|
$22,149
|
|
$17,881
|
|
|
|
|
Liabilities and
equity
|
|
|
|
Liabilities
|
|
|
|
Payables, accruals
and provisions
|
$1,363
|
|
$1,159
|
Current tax
liabilities
|
169
|
|
251
|
Deferred
revenue
|
874
|
|
866
|
Other financial
liabilities
|
175
|
|
376
|
Current
liabilities
|
2,581
|
|
2,652
|
|
|
|
|
Long-term
indebtedness
|
3,786
|
|
3,772
|
Provisions and other
non-current liabilities
|
943
|
|
1,083
|
Deferred
tax
|
1,005
|
|
394
|
Total
liabilities
|
8,315
|
|
7,901
|
|
|
|
|
Equity
|
|
|
|
Capital
|
5,496
|
|
5,458
|
Retained
earnings
|
9,149
|
|
5,211
|
Accumulated other
comprehensive loss
|
(811)
|
|
(689)
|
Total
equity
|
13,834
|
|
9,980
|
Total liabilities
and equity
|
$22,149
|
|
$17,881
|
Thomson Reuters
Corporation
Consolidated
Statement of Cash Flow
(millions of U.S.
dollars)
(unaudited)
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2021
|
2020
|
|
2021
|
2020
|
Cash provided by
(used in):
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
(Loss) earnings from
continuing operations
|
$(177)
|
$587
|
|
$5,687
|
$1,149
|
Adjustments
for:
|
|
|
|
|
|
Depreciation
|
49
|
40
|
|
177
|
184
|
Amortization of
computer software
|
118
|
123
|
|
474
|
485
|
Amortization of other
identifiable intangible assets
|
29
|
31
|
|
119
|
123
|
Share of post-tax
losses (earnings) in equity method investments
|
477
|
159
|
|
(6,240)
|
544
|
Net gains on disposals
of businesses and investments
|
-
|
(472)
|
|
(5)
|
(471)
|
Deferred
tax
|
(108)
|
(41)
|
|
662
|
(231)
|
Other
|
74
|
(106)
|
|
135
|
(123)
|
Changes in working
capital and other items
|
(69)
|
249
|
|
832
|
102
|
Operating cash flows
from continuing operations
|
393
|
570
|
|
1,841
|
1,762
|
Operating cash flows
from discontinued operations
|
4
|
(4)
|
|
(68)
|
(17)
|
Net cash provided by
operating activities
|
397
|
566
|
|
1,773
|
1,745
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
Acquisitions, net of
cash acquired
|
(13)
|
(2)
|
|
(18)
|
(167)
|
Proceeds from
disposals of businesses and investments, net of
taxes
paid
|
-
|
366
|
|
28
|
367
|
Dividend from sale of
LSEG shares
|
-
|
-
|
|
994
|
-
|
Capital
expenditures
|
(123)
|
(100)
|
|
(487)
|
(504)
|
Proceeds from
disposals of property and equipment
|
-
|
-
|
|
-
|
162
|
Other investing
activities
|
25
|
2
|
|
81
|
4
|
Taxes paid on sale of
Refinitiv and LSEG shares
|
(188)
|
-
|
|
(850)
|
-
|
Investing cash flows
from continuing operations
|
(299)
|
266
|
|
(252)
|
(138)
|
Investing cash flows
from discontinued operations
|
-
|
-
|
|
(252)
|
-
|
Net cash (used in)
provided by investing activities
|
(299)
|
266
|
|
(504)
|
(138)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
Proceeds from
debt
|
-
|
-
|
|
-
|
2,019
|
Repayments of
debt
|
-
|
-
|
|
-
|
(1,645)
|
Net repayments under
short-term loan facilities
|
-
|
-
|
|
-
|
(2)
|
Payments of lease
principal
|
(44)
|
(19)
|
|
(109)
|
(75)
|
Repurchases of common
shares
|
(597)
|
-
|
|
(1,400)
|
(200)
|
Dividends paid on
preference shares
|
-
|
-
|
|
(2)
|
(2)
|
Dividends paid on
common shares
|
(191)
|
(183)
|
|
(773)
|
(730)
|
Other financing
activities
|
3
|
1
|
|
11
|
(9)
|
Net cash used in
financing activities
|
(829)
|
(201)
|
|
(2,273)
|
(644)
|
(Decrease) increase
in cash and bank overdrafts
|
(731)
|
631
|
|
(1,004)
|
963
|
Translation
adjustments
|
(2)
|
4
|
|
(5)
|
(1)
|
Cash and bank
overdrafts at beginning of period
|
1,511
|
1,152
|
|
1,787
|
825
|
Cash and bank
overdrafts at end of period
|
$778
|
$1,787
|
|
$778
|
$1,787
|
Cash and bank
overdrafts at end of period comprised of:
|
|
|
|
|
|
Cash and cash
equivalents
|
$778
|
$1,787
|
|
$778
|
$1,787
|
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
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
(Loss) earnings
from continuing operations
|
$(177)
|
$587
|
|
$5,687
|
$1,149
|
|
|
Adjustments to
remove:
|
|
|
|
|
|
|
|
Tax (benefit)
expense
|
(115)
|
155
|
|
1,607
|
71
|
|
|
Other finance costs
(income)
|
22
|
6
|
|
(8)
|
(30)
|
|
|
Net interest
expense
|
50
|
49
|
|
196
|
195
|
|
|
Amortization of other
identifiable intangible assets
|
29
|
31
|
|
119
|
123
|
|
|
Amortization of
computer software
|
118
|
123
|
|
474
|
485
|
|
|
Depreciation
|
49
|
40
|
|
177
|
184
|
|
|
EBITDA
|
$(24)
|
$991
|
|
$8,252
|
$2,177
|
|
|
Adjustments to
remove:
|
|
|
|
|
|
|
|
Share of post-tax
losses (earnings) in equity method investments
|
477
|
159
|
|
(6,240)
|
544
|
|
|
Other operating losses
(gains), net
|
1
|
(632)
|
|
(34)
|
(736)
|
|
|
Fair value
adjustments*
|
(2)
|
7
|
|
(8)
|
(10)
|
|
|
Adjusted
EBITDA(1)
|
$452
|
$525
|
|
$1,970
|
$1,975
|
|
|
Adjusted EBITDA
margin(1)
|
26.4%
|
32.5%
|
|
31.0%
|
33.0%
|
|
|
* Fair value adjustments, a
component of operating expenses, primarily represent gains or
losses due to changes in foreign currency exchange rates on
intercompany balances that arise in the ordinary course of
business.
|
Thomson Reuters
Corporation
|
Reconciliation of
Net Cash Provided by Operating Activities to Free Cash
Flow(1)
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
December
31,
|
|
December
31,
|
|
2021
|
2020
|
|
2021
|
2020
|
Net cash provided
by operating activities
|
$397
|
$566
|
|
$1,773
|
$1,745
|
Capital
expenditures
|
(123)
|
(100)
|
|
(487)
|
(504)
|
Proceeds from
disposals of property and equipment
|
-
|
-
|
|
-
|
162
|
Other investing
activities
|
25
|
2
|
|
81
|
4
|
Payments of lease
principal
|
(44)
|
(19)
|
|
(109)
|
(75)
|
Dividends paid on
preference shares
|
-
|
-
|
|
(2)
|
(2)
|
Free cash
flow(1)
|
$255
|
$449
|
|
$1,256
|
$1,330
|
|
|
|
|
|
|
|
Thomson Reuters
Corporation
|
Reconciliation of
Capital Expenditures to Accrued Capital
Expenditures(1)
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
|
Year
Ended
|
|
|
December
31,
|
|
|
2021
|
2020
|
Capital
expenditures
|
|
$487
|
$504
|
Remove: IFRS
adjustment to cash basis
|
|
54
|
(37)
|
Accrued capital
expenditures (1)
|
|
$541
|
$467
|
Accrued capital
expenditures as a percentage of
revenues(1)
|
|
8.5%
|
7.8%
|
(1) Refer to page 21
for additional information on non-IFRS financial
measures.
|
Thomson Reuters
Corporation
|
Reconciliation of
Net (Loss) Earnings to Adjusted
Earnings(1)
|
Reconciliation of
Total Change in Adjusted EPS(1) to
Change in Constant Currency(1)
|
(millions of U.S.
dollars, except for share and per share data)
|
(unaudited)
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
|
|
2021
|
2020
|
Change
|
|
2021
|
2020
|
Change
|
Net (loss)
earnings
|
$(175)
|
$562
|
|
|
$5,689
|
$1,122
|
|
Adjustments to
remove:
|
|
|
|
|
|
|
|
Fair value
adjustments*
|
(2)
|
7
|
|
|
(8)
|
(10)
|
|
Amortization of other
identifiable intangible assets
|
29
|
31
|
|
|
119
|
123
|
|
Other operating losses
(gains), net
|
1
|
(632)
|
|
|
(34)
|
(736)
|
|
Other finance costs
(income)
|
22
|
6
|
|
|
(8)
|
(30)
|
|
Share of post-tax
losses (earnings) in equity method investments
|
477
|
159
|
|
|
(6,240)
|
544
|
|
Tax on above
items(1)
|
(141)
|
119
|
|
|
1,475
|
19
|
|
Tax items impacting
comparability(1)
|
(9)
|
(29)
|
|
|
(24)
|
(136)
|
|
(Earnings) loss from
discontinued operations, net of tax
|
(2)
|
25
|
|
|
(2)
|
27
|
|
Interim period
effective tax rate normalization(1)
|
10
|
21
|
|
|
-
|
-
|
|
Dividends declared on
preference shares
|
-
|
-
|
|
|
(2)
|
(2)
|
|
Adjusted
earnings(1)
|
$210
|
$269
|
|
|
$965
|
$921
|
|
Adjusted
EPS(1)
|
$0.43
|
$0.54
|
-20%
|
|
$1.95
|
$1.85
|
5%
|
Foreign
currency
|
|
|
0%
|
|
|
|
1%
|
Constant
currency
|
|
|
-20%
|
|
|
|
5%
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares (millions)**
|
488.6
|
498.8
|
|
|
494.5
|
498.0
|
|
|
* Fair value
adjustments, a component of operating expenses, primarily represent
gains or losses due to changes in foreign currency exchange rates
on intercompany balances that arise in the ordinary course of
business.
|
|
** Because Thomson
Reuters reported a net loss for continuing operations under IFRS
for the three months ended December 31, 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
December 31, 2021
|
|
|
|
|
IFRS: Basic and
Diluted
|
487,297,738
|
|
Effect of stock
options and other equity incentive awards
|
1,291,196
|
|
Non-IFRS
Diluted
|
488,588,934
|
|
|
(1) Refer to page 21
for additional information on non-IFRS financial
measures.
|
Thomson Reuters
Corporation
|
|
Reconciliation of
Changes in Revenues to Changes in Revenues on a Constant
Currency(1) and Organic
Basis(1)
|
|
(millions of U.S.
dollars)
|
|
(unaudited)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
December
31,
|
|
Change
|
|
|
2021
|
2020
|
|
Total
|
Foreign
Currency
|
SUBTOTAL
Constant
Currency
|
Acquisitions/
(Divestitures)
|
Organic
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$689
|
$653
|
|
5%
|
0%
|
5%
|
0%
|
6%
|
Corporates
|
|
361
|
338
|
|
7%
|
0%
|
7%
|
0%
|
7%
|
Tax &
Accounting Professionals
|
|
309
|
285
|
|
9%
|
-1%
|
9%
|
0%
|
9%
|
"Big 3" Segments
Combined(1)
|
|
1,359
|
1,276
|
|
6%
|
0%
|
7%
|
0%
|
7%
|
Reuters
News
|
|
182
|
164
|
|
11%
|
-1%
|
12%
|
0%
|
12%
|
Global
Print
|
|
170
|
177
|
|
-4%
|
0%
|
-4%
|
0%
|
-4%
|
Eliminations/Rounding
|
|
(1)
|
(1)
|
|
|
|
|
|
|
Revenues
|
|
$1,710
|
$1,616
|
|
6%
|
0%
|
6%
|
0%
|
6%
|
|
|
|
|
|
|
|
|
|
|
Recurring
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$642
|
$608
|
|
6%
|
0%
|
5%
|
0%
|
6%
|
Corporates
|
|
314
|
293
|
|
7%
|
0%
|
7%
|
0%
|
7%
|
Tax &
Accounting Professionals
|
|
276
|
255
|
|
9%
|
0%
|
9%
|
0%
|
9%
|
"Big 3" Segments
Combined(1)
|
|
1,232
|
1,156
|
|
7%
|
0%
|
7%
|
0%
|
7%
|
Reuters
News
|
|
145
|
142
|
|
2%
|
-1%
|
3%
|
0%
|
3%
|
Total Recurring
Revenues
|
|
$1,377
|
$1,298
|
|
6%
|
0%
|
6%
|
0%
|
6%
|
|
|
|
|
|
|
|
|
|
|
Transactions
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$47
|
$45
|
|
4%
|
0%
|
4%
|
-2%
|
6%
|
Corporates
|
|
47
|
45
|
|
4%
|
0%
|
4%
|
0%
|
4%
|
Tax &
Accounting Professionals
|
|
33
|
30
|
|
9%
|
-1%
|
10%
|
0%
|
10%
|
"Big 3" Segments
Combined(1)
|
|
127
|
120
|
|
5%
|
0%
|
6%
|
-1%
|
6%
|
Reuters
News
|
|
37
|
22
|
|
66%
|
2%
|
64%
|
0%
|
64%
|
Total Transactions
Revenues
|
|
$164
|
$142
|
|
15%
|
0%
|
15%
|
-1%
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth percentages
are computed using whole dollars. As a result, percentages
calculated from reported amounts may differ from those presented,
and growth components may not total due to rounding.
|
|
(1) Refer to page 21
for additional information on non-IFRS financial
measures.
|
Thomson Reuters
Corporation
|
Reconciliation of
Changes in Revenues to Changes in Revenues on a Constant
Currency(1) and Organic
Basis(1)
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
|
|
Year
Ended
|
|
|
|
|
|
|
|
December
31,
|
|
Change
|
|
|
2021
|
2020
|
|
Total
|
Foreign
Currency
|
SUBTOTAL Constant
Currency
|
Acquisitions/
(Divestitures)
|
Organic
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$2,712
|
$2,535
|
|
7%
|
1%
|
6%
|
0%
|
6%
|
Corporates
|
|
1,449
|
1,367
|
|
6%
|
1%
|
5%
|
0%
|
5%
|
Tax &
Accounting Professionals
|
|
906
|
836
|
|
8%
|
0%
|
9%
|
0%
|
9%
|
"Big 3" Segments
Combined(1)
|
|
5,067
|
4,738
|
|
7%
|
1%
|
6%
|
0%
|
6%
|
Reuters
News
|
|
674
|
628
|
|
7%
|
1%
|
7%
|
0%
|
7%
|
Global
Print
|
|
609
|
620
|
|
-2%
|
1%
|
-3%
|
0%
|
-3%
|
Eliminations/Rounding
|
|
(2)
|
(2)
|
|
|
|
|
|
|
Revenues
|
|
$6,348
|
$5,984
|
|
6%
|
1%
|
5%
|
0%
|
5%
|
|
|
|
|
|
|
|
|
|
|
Recurring
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$2,523
|
$2,367
|
|
7%
|
1%
|
6%
|
0%
|
5%
|
Corporates
|
|
1,218
|
1,143
|
|
7%
|
1%
|
6%
|
0%
|
6%
|
Tax &
Accounting Professionals
|
|
733
|
682
|
|
8%
|
0%
|
8%
|
0%
|
8%
|
"Big 3" Segments
Combined(1)
|
|
4,474
|
4,192
|
|
7%
|
1%
|
6%
|
0%
|
6%
|
Reuters
News
|
|
576
|
566
|
|
2%
|
1%
|
1%
|
0%
|
1%
|
Total Recurring
Revenues
|
|
$5,050
|
$4,758
|
|
6%
|
1%
|
5%
|
0%
|
5%
|
|
|
|
|
|
|
|
|
|
|
Transactions
Revenues
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$189
|
$168
|
|
13%
|
2%
|
11%
|
-1%
|
12%
|
Corporates
|
|
231
|
224
|
|
3%
|
0%
|
3%
|
0%
|
3%
|
Tax &
Accounting Professionals
|
|
173
|
154
|
|
12%
|
0%
|
12%
|
0%
|
12%
|
"Big 3" Segments
Combined(1)
|
|
593
|
546
|
|
9%
|
1%
|
8%
|
0%
|
8%
|
Reuters
News
|
|
98
|
62
|
|
57%
|
2%
|
55%
|
0%
|
55%
|
Total Transactions
Revenues
|
|
$691
|
$608
|
|
14%
|
1%
|
13%
|
0%
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth percentages
are computed using whole dollars. As a result, percentages
calculated from reported amounts may differ from those presented,
and growth components may not total due to rounding.
|
|
(1) Refer to page 21
for additional information on non-IFRS financial
measures.
|
Thomson Reuters
Corporation
|
Reconciliation of
Changes in Adjusted EBITDA(1) to Changes on a Constant
Currency Basis(1)
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
December
31,
|
|
Change
|
|
|
2021
|
2020
|
|
Total
|
Foreign
Currency
|
Constant
Currency
|
Adjusted
EBITDA(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$239
|
$245
|
|
-3%
|
0%
|
-2%
|
Corporates
|
|
95
|
105
|
|
-10%
|
0%
|
-10%
|
Tax &
Accounting Professionals
|
|
154
|
145
|
|
6%
|
-1%
|
7%
|
"Big 3" Segments
Combined(1)
|
|
488
|
495
|
|
-2%
|
0%
|
-1%
|
Reuters
News
|
|
15
|
6
|
|
139%
|
32%
|
107%
|
Global
Print
|
|
61
|
61
|
|
0%
|
1%
|
-1%
|
Corporate
costs
|
|
(112)
|
(37)
|
|
n/a
|
n/a
|
n/a
|
Adjusted
EBITDA
|
|
$452
|
$525
|
|
-14%
|
0%
|
-14%
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
34.5%
|
37.5%
|
|
-300bp
|
-30bp
|
-270bp
|
Corporates
|
|
26.3%
|
31.1%
|
|
-480bp
|
0bp
|
-480bp
|
Tax &
Accounting Professionals
|
|
49.8%
|
51.1%
|
|
-130bp
|
-10bp
|
-120bp
|
"Big 3" Segments
Combined(1)
|
|
35.8%
|
38.8%
|
|
-300bp
|
-20bp
|
-280bp
|
Reuters
News
|
|
8.3%
|
3.9%
|
|
440bp
|
-10bp
|
450bp
|
Global
Print
|
|
35.9%
|
34.6%
|
|
130bp
|
20bp
|
110bp
|
Corporate
costs
|
|
n/a
|
n/a
|
|
n/a
|
n/a
|
n/a
|
Adjusted EBITDA
margin
|
|
26.4%
|
32.5%
|
|
-610bp
|
0bp
|
-610bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/a: not
applicable
|
|
Growth percentages
and margins are computed using whole dollars. As a result,
percentages and margins calculated from reported amounts may differ
from those presented, and growth components may not total due to
rounding.
|
|
(1) Refer to page 21
for additional information on non-IFRS financial
measures.
|
Thomson Reuters
Corporation
|
Reconciliation of
Changes in Adjusted EBITDA(1) to Changes on a Constant
Currency Basis(1)
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
|
|
Year
Ended
|
|
|
|
|
December
31,
|
|
Change
|
|
|
2021
|
2020
|
|
Total
|
Foreign
Currency
|
Constant
Currency
|
Adjusted
EBITDA(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$1,091
|
$1,001
|
|
9%
|
2%
|
7%
|
Corporates
|
|
502
|
460
|
|
9%
|
0%
|
9%
|
Tax &
Accounting Professionals
|
|
373
|
330
|
|
13%
|
0%
|
13%
|
"Big 3" Segments
Combined(1)
|
|
1,966
|
1,791
|
|
10%
|
1%
|
9%
|
Reuters
News
|
|
103
|
73
|
|
40%
|
-11%
|
51%
|
Global
Print
|
|
226
|
242
|
|
-7%
|
2%
|
-8%
|
Corporate
costs
|
|
(325)
|
(131)
|
|
n/a
|
n/a
|
n/a
|
Adjusted
EBITDA
|
|
$1,970
|
$1,975
|
|
0%
|
0%
|
-1%
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
40.2%
|
39.5%
|
|
70bp
|
20bp
|
50bp
|
Corporates
|
|
34.6%
|
33.7%
|
|
90bp
|
-10bp
|
100bp
|
Tax &
Accounting Professionals
|
|
41.1%
|
39.5%
|
|
160bp
|
-10bp
|
170bp
|
"Big 3" Segments
Combined(1)
|
|
38.8%
|
37.8%
|
|
100bp
|
10bp
|
90bp
|
Reuters
News
|
|
15.2%
|
11.7%
|
|
350bp
|
-150bp
|
500bp
|
Global
Print
|
|
37.1%
|
39.0%
|
|
-190bp
|
20bp
|
-210bp
|
Corporate
costs
|
|
n/a
|
n/a
|
|
n/a
|
n/a
|
n/a
|
Adjusted EBITDA
margin
|
|
31.0%
|
33.0%
|
|
-200bp
|
-10bp
|
-190bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/a: not
applicable
|
|
Growth percentages
and margins are computed using whole dollars. As a result,
percentages and margins calculated from reported amounts may differ
from those presented, and growth components may not total due to
rounding.
|
|
(1) Refer to page 21
for additional information on non-IFRS financial
measures.
|
Non-IFRS Financial
Measures
|
Definition
|
Why Useful to the
Company and Investors
|
Segment adjusted EBITDA, adjusted
EBITDA and adjusted EBITDA margin
|
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 of the business segments and
corporate costs.
Adjusted EBITDA
margin is adjusted EBITDA expressed as a percentage of
revenues.
|
Provides a consistent
basis to evaluate operating profitability and performance trends by
excluding items that the company does not consider to be
controllable activities for this purpose.
Also, represents a
measure commonly reported and widely used by investors as a
valuation metric, as well as to assess a company's ability to incur
and service debt.
|
Adjusted earnings and
adjusted earnings per share
|
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.
The post-tax amount
of each item is excluded from adjusted earnings based on the
specific tax rules and tax rates associated with the nature and
jurisdiction of each item.
Adjusted EPS is
calculated from adjusted earnings using diluted weighted-average
shares and does not represent actual earnings or loss per share
attributable to shareholders.
|
Provides a more
comparable basis to analyze earnings.
These measures are
commonly used by shareholders to measure the company's
performance.
|
Effective tax rate on
adjusted earnings
|
Adjusted tax expense
divided by pre-tax adjusted earnings. Adjusted tax expense is
computed as Income tax (benefit) expense plus or minus the income
tax impacts of all items impacting adjusted earnings (as described
above), and other tax items affecting comparability.
In interim periods,
we also make an adjustment to reflect income taxes based on the
estimated full-year effective tax rate. Earnings or losses for
interim periods under IFRS reflect income taxes based on the
estimated effective tax rates of each of the jurisdictions in which
Thomson Reuters operates. The non-IFRS adjustment reallocates
estimated full-year income taxes between interim periods but has no
effect on full-year income taxes.
|
Provides a basis to
analyze the effective tax rate associated with adjusted
earnings.
Because the
geographical mix of pre-tax profits and losses in interim periods
may be different from that for the full year, our effective tax
rate computed in accordance with IFRS may be more volatile by
quarter. Therefore, we believe that using the expected full-year
effective tax rate provides more comparability among interim
periods.
|
Free cash
flow
|
Net cash provided by
operating activities, proceeds from disposals of property and
equipment, and other investing activities less capital
expenditures, payments of lease principal and dividends paid on the
company's preference shares.
|
Helps assess the
company's ability, over the long term, to create value for its
shareholders as it represents cash available to repay debt, pay
common dividends and fund share repurchases and
acquisitions.
|
Changes before the
impact of foreign currency "constant currency"
|
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.
|
Provides better
comparability of business trends from period to period.
|
Organic revenue
growth
|
Represents changes in
revenues of the company's existing businesses at constant currency.
The metric excludes the distortive impacts of acquisitions and
dispositions from not owning the business in both comparable
periods.
|
Provides further
insight into the performance of 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.
|
Accrued capital
expenditures as a percentage of revenues
|
Accrued capital
expenditures divided by revenues, where accrued capital
expenditures include amounts that remain unpaid at the end of the
reporting period.
Prior to December 31,
2021, the company used capital expenditures paid in this
calculation, from its consolidated statement of cash flow, as
measured under IFRS. The prior period has been revised to reflect
the current methodology.
|
Reflects the basis on
which the company manages capital expenditures for internal
budgeting purposes.
|
"Big 3"
segments
|
The combined Legal
Professionals, Corporates and Tax & Accounting Professionals
segments. All measures reported for the "Big 3" segments are
non-IFRS financial measures.
|
Information for the
"Big 3" segments comprise 80% of revenues and represent the core of
the company's business information service product
offerings.
|
Please refer to reconciliations for most directly comparable
IFRS measures.
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SOURCE Thomson Reuters