3rd Quarter & 9 Mths Results
November 08 2001 - 8:54AM
UK Regulatory
RNS Number:8472M
Thomson Corporation
8 November 2001
( BW)(THOMSON)(TOC.TO) Thomson Reports Third-Quarter 2001 Results
Business Editors
TORONTO--(BUSINESS WIRE)--Nov. 8, 2001--
(Unless otherwise stated, all amounts are in US dollars)
The Thomson Corporation (TSE:TOC) today reported strong
third-quarter growth in revenues and earnings before interest, tax,
depreciation and amortization (EBITDA).
Revenues from continuing operations, excluding disposals, were
$1.9 billion, an increase of 21% over the third quarter of 2000.
EBITDA from continuing operations, excluding disposals, increased 22%
to $541 million.
Earnings from continuing operations were $147 million, or $0.23
per common share, for the third quarter compared to $168 million, or
$0.27 per share, in the third quarter of 2000. These results reflect
higher amortization and borrowing costs related to recent
acquisitions, as well as losses stemming from equity positions held in
associated companies.
"Thomson delivered strong third-quarter performance in line with
our most recent expectations for the full year," said Richard J.
Harrington, president and chief executive officer of The Thomson
Corporation. "We had good sales gains in the quarter despite the
further weakening economic environment, and we continued to make
excellent progress integrating recent acquisitions and improving
efficiencies -- successfully achieving the careful balance of building
a stronger Thomson for the future while maintaining momentum today."
Third-Quarter Business Highlights:
-- Revenues within Thomson Financial grew 36% and EBITDA grew 30%
in the quarter, largely reflecting the benefits of the Primark
and Carson acquisitions. Thomson Financial continued to drive
organic growth by delivering integrated tools and solutions to
customers' desktops.
-- Thomson Legal & Regulatory increased sales and margins in
North America, resulting in overall revenue and EBITDA growth
of 4% and 8% respectively. Revenue growth reflects continued
solid performance of Westlaw, increased sales at RIA and IOB,
as well as the impact of recent acquisitions. Growth was
offset, in part, by the continuing impact of a slowing economy
and its effect on global trademark search activity.
-- Three acquisitions made during the quarter, ProLaw, NewsEdge
and BAR/BRI, further enhanced the content and solutions
offerings of Thomson Legal & Regulatory. ProLaw expands its
presence in the law practice management and productivity
solutions market, while NewsEdge provides the group with a
strong position in the current news awareness and business
information market. With the addition of BAR/BRI, acquired as
part of the Harcourt acquisition and aligned with the group in
the quarter, Thomson Legal & Regulatory is now the largest
provider of bar exam participation classes in the U.S. market.
-- Revenues increased 38% and EBITDA 12% in Thomson Learning
during the quarter. Strong revenue growth reflects the
addition of Harcourt businesses acquired in July, as well as
increased sales in the Academic and International groups. As
previously reported, one-time costs associated with the
Harcourt integration have reduced EBITDA margins in the
Learning group. The integration of the Harcourt businesses is
proceeding as planned.
-- Thomson Scientific & Healthcare grew revenues 8% and EBITDA
17% for the quarter as it continued to drive growth through
the Web of Science portal and Derwent subscription products,
increased drug information subscriptions, and expanded
presence in the continuing medical education market.
Nine-Months Results
Revenues from continuing operations, excluding disposals, were
$4.9 billion, an increase of 22% over the first nine months of 2000.
EBITDA from continuing operations, excluding disposals, were $1.1
billion, an increase of 27% over the first nine months of 2000.
Earnings from continuing operations were $408 million, or $0.65 per
common share, for the nine-month period compared to $200 million, or
$0.32 per share, for the first nine months of 2000. Excluding one-time
items, earnings from continuing operations were $198 million, or $0.32
per share, for the first nine months of 2001, compared with earnings
of $182 million, or $0.29 per share, for the same period a year ago.
2001 Financial Outlook
On October 17th Thomson provided updated 2001 guidance reflecting
the effects of the slowing economy, events of September 11th, and the
addition of the Harcourt businesses.
Thomson continues to anticipate revenues from ongoing operations
for the full year 2001, including Harcourt, will increase 16% to 19%,
and EBITDA from ongoing operations, including Harcourt, to increase
12% to 15% over the prior year.
Dividend
The directors of The Thomson Corporation today declared a dividend
of 17.5 cents per common share, the same rate of dividend as paid
on September 17, 2001. The dividend is payable on December 17, 2001 to
holders of common shares of record on November 22, 2001, other than
holders of related common shares of The Thomson Corporation PLC
(Thomson PLC) who have elected to receive the equivalent dividend of
11.9576 pence per related common share of Thomson PLC in lieu of
dividends from The Thomson Corporation.
About The Thomson Corporation
The Thomson Corporation (www.thomson.com), with 2000 revenues of
approximately US$6 billion, is a leading, global provider of
integrated information solutions to business and professional
customers. The Corporation's common shares are listed on the Toronto
and London stock exchanges.
This news release includes forward-looking statements, which are
based on the Corporation's current expectations and assumptions, and
are subject to a number of risks and uncertainties that could cause
actual results to materially differ from those anticipated. Such risks
and uncertainties include, among others, general business and economic
conditions and competitive actions.
Note: The Thomson Corporation will audio webcast a discussion of
third-quarter results beginning at 10:30 am EST today. To participate
in the webcast, please visit www.thomson.com and click on the
Investors tab at the top of the page.
www.thomson.com
-0-
*T
CONSOLIDATED STATEMENT OF EARNINGS
(millions of US dollars, except per common share data)
(unaudited)
Three months ended Nine months ended
September 30 September 30
2001 2000 2001 2000
---- ---- ---- ----
Revenues 1,977 1,732 5,109 4,490
Cost of sales, selling,
marketing, general and
administrative expenses (1,432) (1,282) (3,952) (3,565)
-------- ------- ------- --------
Earnings before interest,
tax, depreciation,
amortization,
restructuring charges
and Year 2000 costs 545 450 1,157 925
Depreciation (136) (116) (357) (305)
-------- ------- ------- --------
Operating profit
before amortization,
restructuring charges
and Year 2000 costs 409 334 800 620
Amortization (118) (77) (317) (221)
Restructuring charges (13) (5) (20) (26)
Year 2000 costs -- -- -- (4)
-------- ------- ------- --------
Operating profit
after amortization,
restructuring charges
and Year 2000 costs 278 252 463 369
Net gains on disposals
of businesses and
investments 4 2 299 52
Net interest expense and
other financing costs (70) (46) (166) (155)
Income taxes (42) (33) (132) (45)
Equity in losses
of associates (16) -- (36) --
-------- ------- ------- --------
Earnings before
dividends declared on
preference shares 154 175 428 221
Dividends declared on
preference shares (7) (7) (20) (21)
-------- ------- ------- --------
Earnings from
continuing operations 147 168 408 200
Earnings from
discontinued operations 64 503 87 553
-------- ------- ------- --------
Earnings attributable
to common shares 211 671 495 753
======== ======= ======= ========
Basic earnings per
common share:
- from continuing
operations $ 0.23 $ 0.27 $ 0.65 $ 0.32
- from discontinued
operations $ 0.11 $ 0.81 $ 0.14 $ 0.89
-------- ------- ------- --------
$ 0.34 $ 1.08 $ 0.79 $ 1.21
======== ======= ======= ========
Fully diluted earnings
per common share:
- from continuing
operations $ 0.23 $ 0.27 $ 0.65 $ 0.32
- from discontinued
operations $ 0.11 $ 0.80 $ 0.14 $ 0.89
-------- ------- ------- --------
$ 0.34 $ 1.07 $ 0.79 $ 1.21
======== ======= ======= ========
Supplemental earnings information:
----------------------------------
Earnings from continuing
operations, as above 147 168 408 200
Deduct: one-time items,
net of tax, resulting
from: restructuring
charges, net gains on
disposals of businesses
and investments
and Year 2000 costs 9 4 (210) (18)
-------- ------- ------- --------
Adjusted earnings from
continuing operations 156 172 198 182
======== ======= ======= ========
Adjusted basic and fully
diluted earnings per
common share from
continuing operations $ 0.25 $ 0.28 $ 0.32 $ 0.29
======== ======= ======= ========
BUSINESS SEGMENT INFORMATION
(millions of US dollars)
(unaudited)
Three months ended September 30
CONTINUING OPERATIONS: 2001 2000 change
---- ---- ------
Revenues:
Legal & Regulatory $691 $664 4.1%
Financial 393 288 36.4%
Learning 676 489 38.2%
Scientific & Healthcare 160 148 8.1%
Intergroup (9) (8)
----- -----
Total ongoing operations 1,911 1,581 20.9%
Disposals (1) 66 151
----- -----
Total Revenues $1,977 $1,732 14.1%
====== ======
EBITDA: (2)
Legal & Regulatory $210 $195 7.7%
Financial 99 76 30.3%
Learning 205 183 12.0%
Scientific & Healthcare 35 30 16.7%
Corporate and other (3) (8) (42)
----- -----
Total ongoing operations 541 442 22.4%
Disposals (1) 4 8
----- -----
Total EBITDA $545 $450 21.1%
====== ======
Operating profit before
amortization, restructuring
charges and
Year 2000 costs:
Legal & Regulatory $176 $164 7.3%
Financial 62 50 24.0%
Learning 150 141 6.4%
Scientific & Healthcare 29 24 20.8%
Corporate and other (3) (8) (42)
----- -----
Total ongoing operations 409 337 21.4%
Disposals (1) - (3)
----- -----
Total Operating profit $409 $334 22.5%
====== ======
Nine months ended September 30
CONTINUING OPERATIONS: 2001 2000 change
---- ---- ------
Revenues:
Legal & Regulatory $1,992 $1,806 10.3%
Financial 1,199 795 50.8%
Learning 1,229 951 29.2%
Scientific & Healthcare 478 449 6.4%
Intergroup (25) (15)
----- -----
Total ongoing operations 4,873 3,986 22.3%
Disposals (1) 236 504
----- -----
Total Revenues $5,109 $4,490 13.8%
====== ======
EBITDA: (2)
Legal & Regulatory $544 $486 11.9%
Financial 292 215 35.8%
Learning 241 212 13.7%
Scientific & Healthcare 97 89 9.0%
Corporate and other (3) (36) (107)
----- -----
Total ongoing operations 1,138 895 27.2%
Disposals (1) 19 30
----- -----
Total EBITDA $1,157 $925 25.1%
====== ======
Operating profit before
amortization, restructuring
charges and
Year 2000 costs:
Legal & Regulatory $436 $388 12.4%
Financial 181 141 28.4%
Learning 131 124 5.6%
Scientific & Healthcare 79 71 11.3%
Corporate and other (3) (36) (107)
----- -----
Total ongoing operations 791 617 28.2%
Disposals (1) 9 3
----- -----
Total Operating profit $800 $620 29.0%
====== ======
Notes to business segment information for continuing operations
1) Disposals includes the results of businesses sold or held for
sale.
2) EBITDA is earnings before interest, tax, depreciation,
amortization, restructuring charges and Year 2000 costs.
3) Corporate and other principally comprises corporate costs,
minority interests and costs associated with Thomson Stock
Appreciation Rights.
--30--bp/ny*
CONTACT: The Thomson Corporation, Toronto
Jason Stewart, 203/328-8339
jason.stewart@thomson.com
or
media
Janey Loyd, 203/328-8342
janey.loyd@thomson.com
or
Investor Relations
John Kechejian, 203/328-9470
john.kechejian@thomson.com
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