- ASV up 7% organically year over year
- Diluted EPS rose 12% to $1.11
FactSet Research Systems Inc. (NYSE:FDS) (Nasdaq:FDS), a leading provider of integrated financial information and analytical applications to the global investment community, today announced its results for the first quarter of fiscal 2013.
For the quarter ended November 30, 2012 revenues increased to $211.1 million, up 7.5% compared to the prior year. Included in this total was $2.7 million of revenue from StreetAccount. Operating income for the first quarter rose to $71.1 million from $66.8 million in the same period of fiscal 2012. Net income advanced 9.3% to $49.8 million compared to $45.5 million a year ago. Diluted earnings per share increased 12.1% to $1.11, up from $0.99 in the same period of fiscal 2012. The acquisition of StreetAccount in June 2012 did not have an impact on FactSet's fiscal 2013 first quarter diluted earnings per share.
Consolidated Statements of Income
(Condensed and Unaudited)
Three Months Ended
(In thousands, except per share data)
Provision for income taxes
Diluted earnings per share
Diluted weighted average shares
Philip A. Hadley, Chairman and CEO said, "Against the backdrop of a difficult selling environment, particularly for the sell-side, FactSet again delivered double-digit EPS growth. We continued our long track record of reinvesting back into the Company to position FactSet to be even stronger as I look ahead."
Annual Subscription Value ("ASV")
ASV advanced $5.0 million organically during the quarter. ASV totaled $847 million at November 30, 2012, up 7.0% organically over the prior year. Of this total, 81% is derived from buy-side clients and the remainder is from the sell-side firms who perform M&A advisory work and equity research. ASV at any given point in time represents the forward-looking revenues for the next 12 months from all services currently being supplied to clients.
Financial Highlights — First Quarter of Fiscal 2013
- ASV from U.S. operations was $578 million and $269 million was related to international operations.
- U.S. revenues were $143.9 million, up 7.0% from the year ago quarter.
- Non-U.S. revenues rose 8.3% to $67.2 million as compared to the same period in fiscal 2012.
- Operating margin was 33.7% for the quarter, down 40 basis points due to the acquisition of StreetAccount.
- Quarterly free cash flow was $44.5 million.
- Cash and investments totaled $225.2 million at November 30, 2012.
- The effective tax rate for the first quarter was 30.4% as compared to 32.1% a year ago.
Operational Highlights — First Quarter of Fiscal 2013
- Client count was 2,401 at November 30th, a net increase of 9 clients and the 12th consecutive quarter of net client growth.
- Annual client retention was greater than 95% of ASV and 92% when expressed as a percentage of clients.
- Users increased by 105 over the past three months and totaled 49,605 professionals at November 30th. Additions from buy-side clients were partially offset by a decline from the sell-side.
- Employee count was 6,020 at November 30th, up 10% over last year and an increase of 285 employees in the first quarter.
- Capital expenditures were $6.1 million.
- A regular quarterly dividend of $13.7 million or $0.31 per share was paid on December 18, 2012 to common stockholders of record as of November 30, 2012.
- The Company repurchased 270,000 shares for $25.4 million during the first quarter. At November 30, 2012, $164.3 million remains authorized for future repurchases.
- Common shares outstanding were 44.3 million at November 30, 2012.
The following forward-looking statements reflect FactSet's expectations as of December 18, 2012. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially. The Company does not intend to update its forward-looking statements until its next quarterly results announcement, other than in publicly available statements.
Second Quarter Fiscal 2013 Expectations
- Revenues are expected to range between $212 million and $215 million.
- Operating margin is expected to range between 33.5% and 34.0%.
- The effective tax rate is expected to range between 31.5% and 32.5%.
- GAAP diluted EPS should range between $1.11 and $1.13, the midpoint of the range represents 10% growth over last year's second quarter.