TORONTO, May 3, 2022 /PRNewswire/ -- Thomson Reuters
(TSX/NYSE: TRI) today reported results for the first quarter ended
March 31,
2022:
- Strong revenue and sales growth continued in the first
quarter
-
- Total company revenue up 6% / organic revenue up 7%
-
- Organic revenue up 7% for the "Big 3" (Legal Professionals,
Corporates and Tax & Accounting Professionals)
- Raised full-year 2022 revenue guidance
-
- Total company revenue forecast increased to approximately 5.5%
from approximately 5.0%
- "Big 3" segments revenue forecast increased to approximately
6.5% from a range of 6.0% - 6.5%
- No other changes to full-year 2022 outlook, reaffirmed
full-year 2023 outlook
- Change Program on track - $305
million run-rate operating expense savings at
quarter-end
"The momentum we saw throughout 2021 continued to build in the
first quarter of 2022, with both sales and revenue exceeding our
expectations. The strong start to the year gives us confidence we
are on the right path to achieve our 2022 and 2023 targets," said
Steve Hasker, President and CEO of
Thomson Reuters.
Mr. Hasker added, "Our businesses are benefiting from
significant prevailing tailwinds driven by a step change in the
complexity of compliance in our legal, tax, and risk-related
markets. The resulting need for trusted, accurate and actionable
content and technology plays to our strengths. Against this
backdrop, we will continue to invest in our businesses, our
employees and our customers' success as we work to translate our
current momentum into sustainable long-term value creation."
Consolidated Financial Highlights - Three Months Ended
March 31
Three Months Ended
March 31,
(Millions of U.S.
dollars, except for adjusted EBITDA margin and EPS)
(unaudited)
|
IFRS Financial
Measures(1)
|
2022
|
2021
|
Change
|
Change at
Constant
Currency
|
Revenues
|
$1,674
|
$1,580
|
6%
|
|
Operating
profit
|
$414
|
$387
|
7%
|
|
Diluted earnings per
share (EPS)
|
$2.06
|
$10.13
|
-80%
|
|
Net cash provided by
operating activities
|
$275
|
$380
|
-28%
|
|
Non-IFRS Financial
Measures(1)
|
|
|
|
|
Revenues
|
$1,674
|
$1,580
|
6%
|
7%
|
Adjusted
EBITDA
|
$600
|
$558
|
7%
|
7%
|
Adjusted EBITDA
margin
|
35.8%
|
35.3%
|
50bp
|
20bp
|
Adjusted EPS
|
$0.66
|
$0.58
|
14%
|
14%
|
Free cash
flow
|
$86
|
$239
|
-64%
|
|
(1) In addition to results
reported in accordance with International Financial Reporting
Standards (IFRS), the company uses certain non-IFRS
financial measures as supplemental
indicators of its operating performance and financial position. See
the "Non-IFRS Financial
Measures" section and the tables
appended to this news release for additional information on these
and other non-IFRS financial
measures, including how they are
defined and reconciled to the most directly comparable IFRS
measures.
|
Revenues increased 6%, driven by growth across four of
the company's five business segments. Foreign currency had a 1%
negative impact on revenues.
- Organic revenues increased 7%, driven by 7% growth in recurring
revenues (78% of total revenues) as well as 8% growth in
transactions revenues. Global Print revenues were flat compared to
the prior-year period.
-
- Organic growth of 7% included an approximately 100bp benefit
resulting primarily from transactional revenue that is unlikely to
recur at this level and, to a lesser extent, timing. The company
expects organic growth to normalize in the remainder of the year
and be in line with full-year guidance.
- The company's "Big 3" segments (Legal Professionals, Corporates
and Tax & Accounting Professionals) reported organic revenue
growth of 7% and collectively comprised 81% of total revenues.
Operating profit increased 7% as higher revenues more
than offset higher costs, which included investments associated
with the company's Change Program.
- Adjusted EBITDA increased 7% due to the same factors as
operating profit. The related margin increased to 35.8% from 35.3%
in the prior-year period. Investments in the Change Program
negatively impacted the first-quarter adjusted EBITDA margin by
210bp.
Diluted earnings per share (EPS) was $2.06 per share compared to $10.13 per share in the prior-year period. The
current period included a benefit from an increase in the value of
the company's investment in London Stock Exchange Group (LSEG),
while the prior-year period included a gain of approximately
$8.1 billion on the sale of Refinitiv
to LSEG.
- Adjusted EPS, which excludes the change in value of the
company's LSEG investment, the gain on the sale of Refinitiv and
other adjustments, increased to $0.66
per share from $0.58 per share in the
prior-year period, primarily due to higher adjusted EBITDA.
Net cash provided by operating activities decreased due
to higher payments associated with the Change Program as well as
higher annual incentive plan bonuses.
- Free cash flow decreased $153
million due to lower cash flows from operating activities
and higher capital expenditures associated with the Change
Program.
Highlights by Customer Segment - Three Months Ended
March 31
(Millions of U.S.
dollars, except for adjusted EBITDA margins)
(unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
Change
|
|
|
2022
|
2021(2)
|
|
Total
|
Constant
Currency(1)
|
Organic(1)(3)
|
Revenues
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$698
|
$668
|
|
4%
|
5%
|
6%
|
Corporates
|
|
411
|
382
|
|
8%
|
8%
|
8%
|
Tax &
Accounting Professionals
|
|
253
|
227
|
|
11%
|
11%
|
11%
|
"Big 3" Segments
Combined(1)
|
|
1,362
|
1,277
|
|
7%
|
7%
|
7%
|
Reuters
News
|
|
176
|
165
|
|
7%
|
9%
|
9%
|
Global
Print
|
|
142
|
143
|
|
-1%
|
0%
|
0%
|
Eliminations/Rounding
|
|
(6)
|
(5)
|
|
|
|
|
Revenues
|
|
$1,674
|
$1,580
|
|
6%
|
7%
|
7%
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$305
|
$279
|
|
9%
|
10%
|
|
Corporates
|
|
157
|
145
|
|
8%
|
7%
|
|
Tax &
Accounting Professionals
|
|
122
|
99
|
|
23%
|
22%
|
|
"Big 3" Segments
Combined(1)
|
|
584
|
523
|
|
11%
|
11%
|
|
Reuters
News
|
|
37
|
28
|
|
31%
|
23%
|
|
Global
Print
|
|
53
|
57
|
|
-8%
|
-7%
|
|
Corporate
costs
|
|
(74)
|
(50)
|
|
n/a
|
n/a
|
|
Adjusted
EBITDA
|
|
$600
|
$558
|
|
7%
|
7%
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
43.7%
|
41.8%
|
|
190bp
|
190bp
|
|
Corporates
|
|
38.1%
|
38.0%
|
|
10bp
|
-20bp
|
|
Tax &
Accounting Professionals
|
|
48.3%
|
43.8%
|
|
450bp
|
420bp
|
|
"Big 3" Segments
Combined(1)
|
|
42.9%
|
41.0%
|
|
190bp
|
160bp
|
|
Reuters
News
|
|
21.0%
|
17.1%
|
|
390bp
|
240bp
|
|
Global
Print
|
|
37.0%
|
39.9%
|
|
-290bp
|
-300bp
|
|
Adjusted EBITDA
margin
|
|
35.8%
|
35.3%
|
|
50bp
|
20bp
|
|
|
|
|
|
|
|
|
|
(1) See the
"Non-IFRS Financial Measures" section and the tables appended to
this news release for additional information on these and other
non-IFRS financial measures.
(2) For
comparative purposes, 2021 segment results have been revised to
reflect the current period presentation. For additional
information, see the "Revision to Prior-Year Segment Results"
section of this news release.
(3) 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 $698 million.
- Recurring revenues grew 6% (94% of total, all organic),
primarily due to strong performances from the Government business,
Westlaw, Practical Law, FindLaw and the segment's business in
Canada and Asia & Emerging Markets.
- Transactions revenues decreased 3% (6% of total, decreased 2%
organic).
Adjusted EBITDA increased 9% to $305 million.
- The margin increased to 43.7% from 41.8%, primarily due to
higher revenues and Change Program savings.
Corporates
Revenues increased 8% (all organic) to $411 million. Revenues benefited from
transactional revenue strength that is unlikely to recur at
first-quarter levels.
- Recurring revenues grew 8% (77% of total, all organic) driven
by Practical Law, CLEAR and Indirect Tax.
- Transactions revenues grew 8% (23% of total, all organic),
driven by Confirmation as well as the company's businesses in
Latin America and Asia & Emerging Markets.
Adjusted EBITDA increased 8% to $157 million.
- The margin increased to 38.1% from 38.0%, as higher expenses
largely offset higher revenues.
Tax & Accounting Professionals
Revenues increased 11% (all organic) to $253 million. Revenues benefited from a change in
the year-over-year timing of the U.S. federal tax filing deadlines
for individuals, which returned to April in 2022 compared to the
extended deadline in May 2021. This
benefited organic revenues by 150bp in the first quarter of 2022
and will reverse in the second quarter of 2022.
- Recurring revenues grew 12% (72% of total, all organic), driven
by strong growth from UltraTax and the company's Latin America businesses.
- Transactions revenues increased 10% (28% of total, all
organic), primarily due to the year-over-year timing of the U.S.
federal tax filing deadlines for individuals and audit
products.
Adjusted EBITDA increased 23% to $122 million.
- The margin increased to 48.3% from 43.8%, primarily due to
higher revenues and Change Program savings.
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 $176
million increased 9% (all organic), primarily driven by the
Professionals business and the increase in the company's LSEG news
agreement.
Adjusted EBITDA increased 31% to $37 million, primarily due to higher
revenues.
Global Print
Revenues were flat compared to the prior-year
period, which was better than the decline that the company expected
due to higher third-party revenues for printing services and the
timing of new sales.
Adjusted EBITDA decreased 8% to $53 million.
- The margin decreased to 37.0% from 39.9% due to the dilutive
effect of third-party print revenue.
Corporate Costs
Corporate costs at the adjusted EBITDA level were
$74 million and included $34 million of Change Program costs. Corporate
costs were $50 million in the
prior-year period and included $11
million of Change Program costs. Additional information
regarding the Change Program is provided below.
Change Program
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 15 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 $357 million has
been invested as of March 31, 2022.
The company continues to anticipate that Change Program spending
will be approximately 60% operating expenses and 40% capital
expenditures.
2022 and 2023 Outlook
The company's updated outlook for 2022 and reaffirmed outlook
for 2023 (which is reflected in the table below) 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 second-quarter 2022 revenue growth rate
will be comparable to its full-year 2022 outlook targets and
second-quarter 2022 adjusted EBITDA margin to be approximately
200bp below its full-year 2022 outlook targets.
While the company's first-quarter 2022 performance provides it
with increasing confidence about its outlook, the global economy
has recently experienced substantial disruption due to concerns
regarding economic effects associated with the pandemic, ongoing
geopolitical risks 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.
Updated Full-Year 2022 Outlook
Total Thomson
Reuters
|
FY
2022
Outlook
2/23/21
|
FY
2022
Outlook
2/8/22
|
FY
2022
Outlook
5/3/22
|
Total Revenue
Growth
|
4.0% - 5.0%
|
~ 5%
|
~ 5.5%
|
Organic Revenue
Growth(1)
|
4.0% - 5.0%
|
~ 5%
|
~ 5.5%
|
Adjusted EBITDA
Margin(1)
|
34% - 35%
|
~ 35%
|
Unchanged
|
Corporate
Costs
Core Corporate Costs
Change Program
Opex
|
$245 - $280
million
$120 - $130
million
$125 - $150
million
|
$280 - $330
million
Unchanged
$160 - $200
million
|
Unchanged
Unchanged
Unchanged
|
Free Cash
Flow(1)
|
$1.2 - $1.3
billion
|
~ $1.3
billion
|
Unchanged
|
Accrued Capex as % of
Revenue(1)
Change Program Accrued Capex
|
7.5% - 8.0%
$75 - $100
million
|
Unchanged
$100 - $140
million
|
Unchanged
Unchanged
|
Depreciation &
Amortization of
Computer
Software
|
$620 - $645
million
|
Unchanged
|
Unchanged
|
Interest Expense
(P&L)
|
$190 - $210
million
|
Unchanged
|
Unchanged
|
Effective Tax Rate on
Adjusted Earnings(1)
|
n/a
|
19% - 21%
|
Unchanged
|
"Big 3"
Segments(1)
|
FY
2022
Outlook
2/23/21
|
FY
2022
Outlook
2/8/22
|
FY
2022
Outlook
5/3/22
|
Total Revenue Growth
|
5.5% - 6.5%
|
6.0% - 6.5%
|
~ 6.5%
|
Organic Revenue
Growth
|
5.5% - 6.5%
|
6.0% - 6.5%
|
~ 6.5%
|
Adjusted EBITDA
Margin
|
41% - 42%
|
~ 42%
|
Unchanged
|
|
|
(1)
|
Non-IFRS financial
measures. See the "Non-IFRS Financial Measures" section below as
well as the tables and footnotes appended to this news release for
more information.
|
Reported Full-Year 2021 and Updated Full-Year 2022 – 2023
Outlook
Total Thomson
Reuters
|
FY 2021
Reported
|
FY
2022
Outlook
Updated
|
FY
2023
Outlook
Reaffirmed
|
Total Revenue
Growth
|
6.1%
|
~ 5.5%
|
5.5% - 6.0%
|
Organic Revenue
Growth(1)
|
5.2%
|
~ 5.5%
|
5.5% - 6.0%
|
Adjusted EBITDA
Margin(1)
|
31.0%
|
~ 35%
|
39% - 40%
|
Corporate
Costs
Core Corporate Costs
Change Program
Opex
|
$325 million
$142 million
$183 million
|
$280 - $330
million
$120 - $130
million
$160 - $200
million
|
$110 - $120
million
$110 - $120
million
$0
|
Free Cash
Flow(1)
|
$1.3 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%
$100 - $140
million
|
6.0% - 6.5%
$0
|
Depreciation &
Amortization of
Computer
Software
|
$651 million
|
$620 - $645
million
|
$580 - $605
million
|
Interest Expense
(P&L)
|
$196 million
|
$190 - $210
million
|
$190 - $210
million
|
Effective Tax Rate on
Adjusted Earnings(1)
|
13.9%
|
19% - 21%
|
n/a
|
"Big 3"
Segments(1)
|
FY 2021
Reported
|
FY
2022
Outlook
Updated
|
FY
2023
Outlook
Reaffirmed
|
Total Revenue Growth
|
6.9%
|
~ 6.5%
|
6.5% - 7.0%
|
Organic Revenue
Growth
|
6.2%
|
~ 6.5%
|
6.5% - 7.0%
|
Adjusted EBITDA
Margin
|
38.8%
|
~ 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
In February 2022, the company
announced 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 June 15, 2022 to common
shareholders of record as of May 26,
2022.
The company did not repurchase any of its shares in the first
quarter of 2022.
As of May 2, 2022, Thomson Reuters
had approximately 487.1 million common shares outstanding.
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 May 2, 2022, Thomson Reuters
indirectly owned approximately 72.4 million LSEG shares which had a
market value of approximately $7.2
billion based on LSEG's closing share price on that day.
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 and the effective tax rate on 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 and
foreign exchange contracts. 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.
REVISION TO PRIOR-YEAR SEGMENT RESULTS
In the first quarter of 2022, the company made two changes to
its segment reporting to reflect how it currently manages its
businesses. The changes (i) reflect the transfer of certain
revenues from its Corporates business to its Tax & Accounting
Professionals business where they are better aligned; and (ii)
record intercompany revenue in Reuters News for content-related
services that it provides to Legal Professionals, Corporates and
Tax & Accounting Professionals. Previously, these services had
been reported as a transfer of expense from Reuters News to these
businesses. These changes impact the financial results of the
company's segments, but do not change the company's consolidated
financial results. The table below summarizes the changes to the
company's first-quarter 2021 results.
|
|
Three Months Ended
March 31, 2021
|
(millions of
U.S. dollars)
|
|
As
Reported
|
Adjustments
|
As
Revised
|
Revenues
|
|
|
|
|
Legal
Professionals
|
|
$668
|
-
|
$668
|
Corporates
|
|
384
|
$(2)
|
382
|
Tax &
Accounting Professionals
|
|
225
|
2
|
227
|
"Big 3" Segments
Combined (1)
|
|
1,277
|
-
|
1,277
|
Reuters
News
|
|
160
|
5
|
165
|
Global
Print
|
|
143
|
-
|
143
|
Eliminations/Rounding
|
|
-
|
(5)
|
(5)
|
Revenues
|
|
$1,580
|
-
|
$1,580
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
|
|
|
Legal
Professionals
|
|
$279
|
-
|
$279
|
Corporates
|
|
146
|
$(1)
|
145
|
Tax &
Accounting Professionals
|
|
98
|
1
|
99
|
"Big 3" Segments
Combined (1)
|
|
523
|
-
|
523
|
Reuters
News
|
|
28
|
-
|
28
|
Global
Print
|
|
57
|
-
|
57
|
Corporate
costs
|
|
(50)
|
-
|
(50)
|
Adjusted
EBITDA
|
|
$558
|
-
|
$558
|
(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.
|
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 "Change
Program," "2022 and 2023 Outlook" and "LSEG Ownership Interest"
sections, 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 17-30 in the "Risk
Factors" section of the company's 2021 annual report. These and
other risk factors are discussed in materials that Thomson Reuters
from time to time files with, or furnishes to, the Canadian
securities regulatory authorities and the U.S. Securities and
Exchange Commission (SEC). Thomson Reuters annual and quarterly
reports are also available in the "Investor Relations" section
of tr.com.
The company's business outlook is based on information
currently available to the company and is based on various external
and internal assumptions made by the company in light of its
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors that the
company believes are appropriate under the circumstances. Material
assumptions and material risks may cause actual performance to
differ from the company's expectations underlying its business
outlook. For a discussion of material assumptions and material
risks related to the company's 2022 and 2023 outlook, please see
pages 62-63 of the company's 2021 annual report. Material
assumptions and material risks related to the company's outlook
will also be included in the company's first-quarter management's
discussion and analysis for the period ended March 31, 2022, which is expected to be filed
shortly. 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 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
Gary Bisbee
Head of Investor
Relations
+1 646 540
3249
gary.bisbee@tr.com
|
Thomson Reuters will webcast a discussion of its
first-quarter 2022 results and its business outlook today beginning
at 9:00 a.m. Eastern Daylight Time
(EDT). You can access the webcast by visiting ir.tr.com. An
archive of the webcast will be available following the
presentation.
Thomson Reuters
Corporation
|
Consolidated Income
Statement
|
(millions of U.S.
dollars, except per share data)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2022
|
2021
|
CONTINUING
OPERATIONS
|
|
|
Revenues
|
$1,674
|
$1,580
|
Operating
expenses
|
(1,081)
|
(1,018)
|
Depreciation
|
(38)
|
(46)
|
Amortization of
computer software
|
(114)
|
(115)
|
Amortization of other
identifiable intangible assets
|
(26)
|
(31)
|
Other operating
(losses) gains, net
|
(1)
|
17
|
Operating
profit
|
414
|
387
|
Finance costs,
net:
|
|
|
Net interest
expense
|
(48)
|
(51)
|
Other finance income
(costs)
|
94
|
(6)
|
Income before tax and
equity method investments
|
460
|
330
|
Share of post-tax
earnings in equity method investments
|
798
|
6,297
|
Tax expense
|
(240)
|
(1,594)
|
Earnings from
continuing operations
|
1,018
|
5,033
|
(Loss) earnings from
discontinued operations, net of tax
|
(11)
|
3
|
Net earnings
|
$1,007
|
$5,036
|
Earnings attributable
to common shareholders
|
$1,007
|
$5,036
|
|
|
|
Earnings per
share:
|
|
|
Basic earnings (loss)
per share:
|
|
|
From
continuing operations
|
$2.09
|
$10.15
|
From
discontinued operations
|
(0.02)
|
-
|
Basic earnings per
share
|
$2.07
|
$10.15
|
|
|
|
Diluted earnings (loss)
per share:
|
|
|
From
continuing operations
|
$2.09
|
$10.13
|
From
discontinued operations
|
(0.03)
|
-
|
Diluted earnings per
share
|
$2.06
|
$10.13
|
|
|
|
Basic weighted-average
common shares
|
486,708,758
|
495,939,970
|
Diluted
weighted-average common shares
|
487,513,216
|
496,938,318
|
Thomson Reuters
Corporation
|
Consolidated
Statement of Financial Position
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
March
31,
|
|
December
31,
|
2022
|
|
2021(1)
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$654
|
|
$778
|
Trade and other
receivables
|
982
|
|
1,057
|
Other financial
assets
|
49
|
|
108
|
Prepaid expenses and
other current assets
|
445
|
|
462
|
Current
assets excluding assets held for sale
|
2,130
|
|
2,405
|
Assets held for
sale
|
211
|
|
48
|
Current
assets
|
2,341
|
|
2,453
|
|
|
|
|
Property and equipment,
net
|
479
|
|
502
|
Computer software,
net
|
826
|
|
822
|
Other identifiable
intangible assets, net
|
3,302
|
|
3,331
|
Goodwill
|
5,882
|
|
5,940
|
Equity method
investments
|
7,545
|
|
6,736
|
Other non-current
assets
|
1,312
|
|
1,226
|
Deferred tax
|
1,142
|
|
1,139
|
Total
assets
|
$22,829
|
|
$22,149
|
|
|
|
|
Liabilities and
equity
|
|
|
|
Liabilities
|
|
|
|
Payables, accruals and
provisions
|
$1,050
|
|
$1,326
|
Current tax
liabilities
|
211
|
|
169
|
Deferred
revenue
|
824
|
|
874
|
Other financial
liabilities
|
78
|
|
175
|
Current
liabilities excluding liabilities associated with assets held for
sale
|
2,163
|
|
2,544
|
Liabilities associated
with assets held for sale
|
158
|
|
37
|
Current
liabilities
|
2,321
|
|
2,581
|
|
|
|
|
Long-term
indebtedness
|
3,800
|
|
3,786
|
Provisions and other
non-current liabilities
|
881
|
|
943
|
Deferred tax
|
1,202
|
|
1,005
|
Total
liabilities
|
8,204
|
|
8,315
|
|
|
|
|
Equity
|
|
|
|
Capital
|
5,485
|
|
5,496
|
Retained
earnings
|
9,974
|
|
9,149
|
Accumulated other
comprehensive loss
|
(834)
|
|
(811)
|
Total
equity
|
14,625
|
|
13,834
|
Total liabilities
and equity
|
$22,829
|
|
$22,149
|
|
|
(1)
|
Prior-year period
amounts have been revised to reflect the current period
presentation.
|
Thomson Reuters
Corporation
|
Consolidated
Statement of Cash Flow
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
Three Months
Ended
March 31,
|
|
2022
|
2021
|
Cash provided by
(used in):
|
|
|
Operating
activities
|
|
|
Earnings from
continuing operations
|
$1,018
|
$5,033
|
Adjustments
for:
|
|
|
Depreciation
|
38
|
46
|
Amortization of computer software
|
114
|
115
|
Amortization of other identifiable intangible
assets
|
26
|
31
|
Share of post-tax earnings in equity method
investments
|
(798)
|
(6,297)
|
Deferred tax
|
166
|
674
|
Other
|
(39)
|
30
|
Changes in working
capital and other items
|
(191)
|
785
|
Operating cash flows
from continuing operations
|
334
|
417
|
Operating cash flows
from discontinued operations
|
(59)
|
(37)
|
Net cash provided by
operating activities
|
275
|
380
|
Investing
activities
|
|
|
Acquisitions, net of
cash acquired
|
(8)
|
(3)
|
Proceeds from disposals
of businesses and investments
|
-
|
5
|
Dividend from sale of
LSEG shares
|
-
|
994
|
Capital
expenditures
|
(171)
|
(120)
|
Other investing
activities
|
-
|
1
|
Taxes paid on sale of
Refinitiv and LSEG shares
|
-
|
(6)
|
Investing cash flows
from continuing operations
|
(179)
|
871
|
Investing cash flows
from discontinued operations
|
-
|
(42)
|
Net cash (used in)
provided by investing activities
|
(179)
|
829
|
Financing
activities
|
|
|
Payments of lease
principal
|
(17)
|
(21)
|
Repurchases of common
shares
|
-
|
(200)
|
Dividends paid on
preference shares
|
(1)
|
(1)
|
Dividends paid on
common shares
|
(209)
|
(194)
|
Other financing
activities
|
7
|
5
|
Net cash used in
financing activities
|
(220)
|
(411)
|
Translation
adjustments
|
-
|
(1)
|
(Decrease) increase in
cash and cash equivalents
|
(124)
|
797
|
Cash and cash
equivalents at beginning of period
|
778
|
1,787
|
Cash and cash
equivalents at end of period
|
$654
|
$2,584
|
Thomson
Reuters Corporation
|
|
Reconciliation of
Earnings from Continuing Operations to Adjusted
EBITDA(1)
|
|
(millions of
U.S. dollars, except for
margins)
|
|
(unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
March
31,
|
|
December
31,
|
|
2022
|
2021
|
|
2021
|
Earnings from
continuing operations
|
$1,018
|
$5,033
|
|
$5,687
|
Adjustments to
remove:
|
|
|
|
|
Tax
expense
|
240
|
1,594
|
|
1,607
|
Other finance (income) costs
|
(94)
|
6
|
|
(8)
|
Net
interest expense
|
48
|
51
|
|
196
|
Amortization of other identifiable intangible
assets
|
26
|
31
|
|
119
|
Amortization of computer software
|
114
|
115
|
|
474
|
Depreciation
|
38
|
46
|
|
177
|
EBITDA
|
$1,390
|
$6,876
|
|
$8,252
|
Adjustments to
remove:
|
|
|
|
|
Share of post-tax earnings in equity method
investments
|
(798)
|
(6,297)
|
|
(6,240)
|
Other operating losses (gains), net
|
1
|
(17)
|
|
(34)
|
Fair value adjustments*
|
7
|
(4)
|
|
(8)
|
Adjusted
EBITDA(1)
|
$600
|
$558
|
|
$1,970
|
Adjusted EBITDA
margin(1)
|
35.8%
|
35.3%
|
|
31.0%
|
|
|
|
|
|
|
|
|
|
|
* 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
|
March
31,
|
|
December
31,
|
|
2022
|
2021
|
|
2021
|
Net cash provided by
operating activities
|
$275
|
$380
|
|
$1,773
|
Capital
expenditures
|
(171)
|
(120)
|
|
(487)
|
Other investing
activities
|
-
|
1
|
|
81
|
Payments of lease
principal
|
(17)
|
(21)
|
|
(109)
|
Dividends paid on
preference shares
|
(1)
|
(1)
|
|
(2)
|
Free cash
flow(1)
|
$86
|
$239
|
|
$1,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
December
31,
|
|
|
|
|
2021
|
Capital
expenditures
|
|
|
|
$487
|
Remove: IFRS adjustment
to cash basis
|
|
|
|
54
|
Accrued capital
expenditures (1)
|
|
|
|
$541
|
Accrued capital
expenditures as a percentage of
revenues(1)
|
|
|
|
8.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Refer to page 18 for
additional information on non-IFRS financial
measures.
|
Thomson Reuters
Corporation
|
|
Reconciliation of
Net Earnings to Adjusted
Earnings(1)
|
|
Reconciliation of
Total Change in Adjusted EPS to Change in Constant
Currency(1)
|
|
(millions of
U.S. dollars, except for share and per
share data)
|
|
(unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
March
31,
|
|
December
31,
|
|
|
2022
|
2021
|
|
2021
|
|
Net
earnings
|
$1,007
|
$5,036
|
|
$5,689
|
|
Adjustments to
remove:
|
|
|
|
|
|
Fair value adjustments*
|
7
|
(4)
|
|
(8)
|
|
Amortization of other identifiable intangible
assets
|
26
|
31
|
|
119
|
|
Other operating losses (gains), net
|
1
|
(17)
|
|
(34)
|
|
Other finance (income) costs
|
(94)
|
6
|
|
(8)
|
|
Share of post-tax earnings in equity method
investments
|
(798)
|
(6,297)
|
|
(6,240)
|
|
Tax
on above items(1)
|
206
|
1,535
|
|
1,475
|
|
Tax
items impacting comparability(1)
|
(44)
|
1
|
|
(24)
|
|
Loss (earnings) from discontinued operations, net of
tax
|
11
|
(3)
|
|
(2)
|
|
Interim period
effective tax rate normalization(1)
|
1
|
1
|
|
-
|
|
Dividends declared on
preference shares
|
(1)
|
(1)
|
|
(2)
|
|
Adjusted
earnings(1)
|
$322
|
$288
|
|
$965
|
|
Adjusted
EPS(1)
|
$0.66
|
$0.58
|
|
|
|
Total change
|
14%
|
|
|
|
|
Foreign
currency
|
0%
|
|
|
|
|
Constant
currency
|
14%
|
|
|
|
|
Diluted
weighted-average common shares (millions)
|
487.5
|
496.9
|
|
|
|
|
|
|
|
|
Year-ended
December 31,
|
|
|
2021
|
Adjusted
earnings
|
|
$965
|
Plus: Dividends
declared on preference shares
|
|
2
|
Plus: Tax expense on
adjusted earnings
|
|
156
|
Pre-Tax Adjusted
earnings
|
|
$1,123
|
|
|
|
IFRS Tax
expense
|
|
$1,607
|
Remove tax related
to:
|
|
|
Amortization of other
identifiable intangible assets
|
|
26
|
Share of post-tax
earnings in equity method investments
|
|
(1,497)
|
Other operating gains,
net
|
|
(9)
|
Other items
|
|
5
|
Subtotal - Tax on
pre-tax items removed from adjusted earnings
|
|
(1,475)
|
Remove: Tax items
impacting comparability
|
|
24
|
Total: Remove all items
above impacting comparability
|
|
(1,451)
|
|
|
|
Tax expense on
adjusted earnings
|
|
$156
|
Effective tax rate
on adjusted earnings
|
|
13.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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.
|
|
(1)
Refer to page 18 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
|
|
|
|
|
|
|
|
|
March
31,
|
|
Change
|
|
|
2022
|
2021(2)
|
|
Total
|
Foreign
Currency
|
SUBTOTAL
Constant
Currency
|
Acquisitions/
(Divestitures)
|
Organic
|
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$698
|
$668
|
|
4%
|
-1%
|
5%
|
0%
|
6%
|
|
Corporates
|
|
411
|
382
|
|
8%
|
0%
|
8%
|
0%
|
8%
|
|
Tax &
Accounting Professionals
|
|
253
|
227
|
|
11%
|
0%
|
11%
|
0%
|
11%
|
|
"Big 3" Segments
Combined(1)
|
|
1,362
|
1,277
|
|
7%
|
0%
|
7%
|
0%
|
7%
|
|
Reuters
News
|
|
176
|
165
|
|
7%
|
-2%
|
9%
|
0%
|
9%
|
|
Global
Print
|
|
142
|
143
|
|
-1%
|
-1%
|
0%
|
0%
|
0%
|
|
Eliminations/Rounding
|
|
(6)
|
(5)
|
|
|
|
|
|
|
|
Revenues
|
|
$1,674
|
$1,580
|
|
6%
|
-1%
|
7%
|
0%
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$653
|
$621
|
|
5%
|
-1%
|
6%
|
0%
|
6%
|
|
Corporates
|
|
316
|
293
|
|
8%
|
0%
|
8%
|
0%
|
8%
|
|
Tax &
Accounting Professionals
|
|
182
|
162
|
|
12%
|
0%
|
12%
|
0%
|
12%
|
|
"Big 3" Segments
Combined(1)
|
|
1,151
|
1,076
|
|
7%
|
0%
|
7%
|
0%
|
8%
|
|
Reuters
News
|
|
155
|
149
|
|
5%
|
-2%
|
6%
|
0%
|
6%
|
|
Eliminations/Rounding
|
|
(6)
|
(5)
|
|
|
|
|
|
|
|
Total Recurring
Revenues
|
|
$1,300
|
$1,220
|
|
7%
|
-1%
|
7%
|
0%
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$45
|
$47
|
|
-4%
|
-1%
|
-3%
|
-1%
|
-2%
|
|
Corporates
|
|
95
|
89
|
|
7%
|
-1%
|
8%
|
0%
|
8%
|
|
Tax &
Accounting Professionals
|
|
71
|
65
|
|
10%
|
0%
|
10%
|
0%
|
10%
|
|
"Big 3" Segments
Combined(1)
|
|
211
|
201
|
|
5%
|
0%
|
6%
|
0%
|
6%
|
|
Reuters
News
|
|
21
|
16
|
|
27%
|
-5%
|
32%
|
0%
|
32%
|
|
Total Transactions
Revenues
|
|
$232
|
$217
|
|
7%
|
-1%
|
8%
|
0%
|
8%
|
|
|
|
|
Year
Ended
|
|
|
|
|
|
|
|
|
December
31,
|
|
Change
|
|
|
2021(2)
|
2020(2)
|
|
Total
|
Foreign
Currency
|
SUBTOTAL
Constant
Currency
|
Acquisitions/
(Divestitures)
|
Organic
|
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$2,712
|
$2,535
|
|
7%
|
1%
|
6%
|
0%
|
6%
|
|
Corporates
|
|
1,440
|
1,361
|
|
6%
|
1%
|
5%
|
0%
|
5%
|
|
Tax &
Accounting Professionals
|
|
915
|
842
|
|
9%
|
0%
|
9%
|
0%
|
9%
|
|
"Big 3" Segments
Combined(1)
|
|
5,067
|
4,738
|
|
7%
|
1%
|
6%
|
0%
|
6%
|
|
Reuters
News
|
|
694
|
645
|
|
8%
|
1%
|
7%
|
0%
|
7%
|
|
Global
Print
|
|
609
|
620
|
|
-2%
|
1%
|
-3%
|
0%
|
-3%
|
|
Eliminations/Rounding
|
|
(22)
|
(19)
|
|
|
|
|
|
|
|
Revenues
|
|
$6,348
|
$5,984
|
|
6%
|
1%
|
5%
|
0%
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 18 for
additional information on non-IFRS financial measures.
|
(2)
|
Revised to reflect the
changes made to the company's segment reporting in the first
quarter of 2022.
|
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
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
|
Change
|
|
|
2022
|
2021(2)
|
|
Total
|
Foreign
Currency
|
Constant
Currency
|
Adjusted
EBITDA(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$305
|
$279
|
|
9%
|
-1%
|
10%
|
Corporates
|
|
157
|
145
|
|
8%
|
1%
|
7%
|
Tax &
Accounting Professionals
|
|
122
|
99
|
|
23%
|
1%
|
22%
|
"Big 3" Segments
Combined(1)
|
|
584
|
523
|
|
11%
|
0%
|
11%
|
Reuters
News
|
|
37
|
28
|
|
31%
|
8%
|
23%
|
Global
Print
|
|
53
|
57
|
|
-8%
|
0%
|
-7%
|
Corporate
costs
|
|
(74)
|
(50)
|
|
n/a
|
n/a
|
n/a
|
Adjusted
EBITDA
|
|
$600
|
$558
|
|
7%
|
0%
|
7%
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
43.7%
|
41.8%
|
|
190bp
|
0bp
|
190bp
|
Corporates
|
|
38.1%
|
38.0%
|
|
10bp
|
30bp
|
-20bp
|
Tax &
Accounting Professionals
|
|
48.3%
|
43.8%
|
|
450bp
|
30bp
|
420bp
|
"Big 3" Segments
Combined(1)
|
|
42.9%
|
41.0%
|
|
190bp
|
30bp
|
160bp
|
Reuters
News
|
|
21.0%
|
17.1%
|
|
390bp
|
150bp
|
240bp
|
Global
Print
|
|
37.0%
|
39.9%
|
|
-290bp
|
10bp
|
-300bp
|
Adjusted EBITDA
margin
|
|
35.8%
|
35.3%
|
|
50bp
|
30bp
|
20bp
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
December
31,
|
|
|
|
2021(2)
|
|
Adjusted
EBITDA(1)
|
|
|
|
Legal
Professionals
|
|
$1,091
|
|
Corporates
|
|
496
|
|
Tax &
Accounting Professionals
|
|
379
|
|
"Big 3" Segments
Combined(1)
|
|
1,966
|
|
Reuters
News
|
|
103
|
|
Global
Print
|
|
226
|
|
Corporate
costs
|
|
(325)
|
|
Adjusted
EBITDA
|
|
$1,970
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
|
Legal
Professionals
|
|
40.2%
|
|
Corporates
|
|
34.4%
|
|
Tax &
Accounting Professionals
|
|
41.3%
|
|
"Big 3" Segments
Combined(1)
|
|
38.8%
|
|
Reuters
News
|
|
14.8%
|
|
Global
Print
|
|
37.1%
|
|
Adjusted EBITDA
margin
|
|
31.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 18 for
additional information on non-IFRS financial measures.
|
(2)
|
Revised to reflect the
changes made to the company's segment reporting in the first
quarter of 2022.
|
Non-IFRS Financial
Measures
|
Definition
|
Why Useful to the
Company and Investors
|
Adjusted EBITDA and the
related margin
|
Represents earnings or
losses from continuing operations before tax expense or benefit,
net interest expense, other finance costs or income, depreciation,
amortization of software and other identifiable intangible assets,
Thomson Reuters share of post-tax earnings or losses in equity
method investments, other operating gains and losses, certain asset
impairment charges and fair value adjustments.
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 the company's ability to
incur and service debt.
|
Adjusted earnings and
adjusted EPS
|
Net earnings or loss
including dividends declared on preference shares but excluding the
post-tax impacts of fair value adjustments, 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 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 or at "constant currency"
|
The changes in
revenues, adjusted EBITDA and the related margin, and adjusted EPS
before currency (at constant currency or excluding the effects of
currency) are determined by converting the current and equivalent
prior period's local currency results using the same foreign
currency exchange rate.
|
Provides better
comparability of business trends from period to period.
|
Changes in revenues
computed on an "organic" basis
|
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 the company's existing businesses
by excluding distortive impacts and serves as a better measure of
the company's ability to grow its business over the long
term.
|
Accrued capital
expenditures as a percentage of revenues
|
Accrued capital
expenditures divided by revenues, where accrued capital
expenditures include amounts that remain unpaid at the end of the
reporting period.
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 company's 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 81% of revenues and represent the core of
the company's business information service product
offerings.
|
|
Please refer to
reconciliations for the most directly comparable IFRS financial
measures.
|
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SOURCE Thomson Reuters