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FactSet Research Systems EPS Up 14% for the Third Quarter of Fiscal 2012

FactSet Research Systems EPS Up 14% for the Third Quarter of Fiscal 2012

  *ASV grew to $811 million, up 9%
  *Revenues rose 10% to $202 million
  *Diluted EPS grew 14% to $1.05
  *Quarterly free cash flow was $70 million, an increase of 23%

NORWALK, Conn., June 12, 2012 (GLOBE NEWSWIRE) -- 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 third quarter of fiscal 2012.

GAAP Results

For the quarter ended May 31, 2012 revenues increased to $202.3 million, up
10% compared to the prior year. Operating income for the third quarter rose to
$68.5 million from $61.8 million in the same period of fiscal 2011. Net income
advanced to $48.0 million compared to $43.3 million a year ago. Diluted
earnings per share increased to $1.05, up from $0.92 in the same period of
fiscal 2011.

Non-GAAP Results

Non-GAAP net income advanced 9% to $52.8 million and non-GAAP diluted earnings
per share increased 13% to $1.15. Quarterly free cash flow was $70.2 million
during the third quarter of fiscal 2012 as compared to $57.1 million a year
ago.

GAAP financial measures including net income and diluted earnings per share
have been adjusted to exclude stock-based compensation expense and
amortization of intangible assets. A reconciliation between GAAP and non-GAAP
financial measures is presented on page 8 of this press release.

Consolidated Statements of Income

(Condensed and Unaudited)    Three Months Ended       Nine Months Ended
                            May 31,                  May 31,
(In thousands, except per    2012     2011     Change 2012     2011     Change
share data)
Revenues                     $202,311 $183,647 10.2 % $598,130 $534,571 11.9 %
Operating income             68,494   61,823   10.8 % 202,363  179,345  12.8 %
Provision for income taxes   20,997   18,684   12.4 % 63,349   49,608   27.7 %
Net income                   $47,980  $43,311  10.8 % $140,270 $130,166 7.8  %
Diluted earnings per share   $1.05    $0.92    14.1 % $3.05    $2.75    10.9 %
Diluted weighted average     45,736   47,154        45,971   47,418       
shares
                                                                     
Non-GAAP net income          $52,823  $48,248  9.5  %                     
Non-GAAP diluted earnings    $1.15    $1.02    12.7 %                     
per share

"While the economy remains volatile, results indicate our philosophy of
consistently investing for the future is paying off. Today we announced EPS
growth of 14% and record free cash flow of $70 million generated in just the
past three months," says Philip Hadley, Chairman and CEO. "In addition, our
third quarter results mark yet another milestone for the Company as we
surpassed $200 million in quarterly revenues."

Annual Subscription Value ("ASV")

ASV was $811 million at May 31, 2012, up 9% over the prior year. Of this
total, 80% 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
advanced $8 million during the third quarter. Over the past three months,
users increased by 1,100 to 48,400, primarily from additions at sell-side
firms. 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 –Third Quarter of Fiscal 2012

  *ASV from U.S. operations was $549 million and $262 million was related to
    international operations.
  *U.S. revenues were $138.2 million, up 10% from the year ago quarter.
  *Non-U.S. revenues also rose 11% to $64.1 million as compared to the same
    period in fiscal 2011.
  *Operating margins were 33.9% for the quarter, up from 33.7% a year ago.
  *Free cash flow generated over the last twelve months was $222 million, up
    25% compared to the same period a year ago. Quarterly free cash flow was
    $70.2 million, up from $57.1 million a year ago.
  *Cash and investments were $242 million at May 31, 2012.
  *Accounts receivable decreased $1.0 million over the last twelve months
    while ASV is up $70 million over the same period, reflecting an
    improvement in DSO from 33 to 30 days.
  *The effective tax rate was 30.4% as compared to 30.1% a year ago.
  *The U.S. Federal R&D tax credit expired on December 31, 2011. The
    expiration increased the annual effective tax rate by 1.3% and reduced
    third quarter diluted EPS by $0.02.

Operational Highlights – Third Quarter of Fiscal 2012

  *Client count was 2,335 at May 31, a net increase of 11 clients during the
    quarter.
  *Annual client retention was greater than 95% of ASV, consistent with last
    year. As a percentage of clients, the annual retention rate remained at
    92% at May 31, consistent with the year ago quarter.
  *Employee count was 5,455 at May 31, up 14% from last year.
  *Capital expenditures were $6.2 million.
  *The regular quarterly dividend increased 15% from $0.27 to $0.31 per
    share, beginning with the Company's dividend payment on June 19, 2012.
  *On May 8, 2012, the Board of Directors approved a $200 million expansion
    to the existing share repurchase program. The Company repurchased 276,000
    shares for $27.3 million during the third quarter. At May 31, 2012, $256
    million remains authorized for future repurchases.
  *Common shares outstanding were 44.8 million at May 31, 2012.
  *The Wall Street Journal released its results of the annual Best on the
    Street Analysts Survey on May 10, 2012, which marked FactSet's fourth
    consecutive year as the data provider.
  *On June 4, 2012, FactSet announced the integration of bank loan data from
    Markit to enhance its Fixed Income Portfolio Analysis service. Under the
    agreement, FactSet will carry Markit's terms and conditions data on bank
    loans as well as loan market performance data from both of Markit's iBoxx
    USD Leveraged Loan's Indexes.
  *FactSet held its U.S. and European symposiums during the third quarter of
    fiscal 2012, with over 320 industry professionals in attendance from
    around the world, including 270 FactSet clients.

Business Outlook

The following forward-looking statements reflect FactSet's expectations as of
June 12, 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.

Fourth Quarter Fiscal 2012 Expectations

  *Revenues are expected to range between $204 million and $208 million.
  *Operating margin is expected to range between 33.5% and 34.0%.
  *The effective tax rate is expected to range between 31.0% and 32.0%.
  *GAAP diluted EPS should range between $1.06 and $1.08.
  *Non-GAAP diluted EPS should range between $1.15 and $1.17.
  *Both GAAP diluted EPS and non-GAAP diluted EPS include a $0.02 reduction
    to reflect the expiration of the U.S. Federal R&D tax credit on December
    31, 2011.

Conference Call

The Company will host a conference call today, June 12, 2012, at 11:00 a.m.
(EDT) to review the third quarter fiscal 2012 earnings release. To listen,
please visit the investor relations section of the Company's website at
www.factset.com.

Forward-looking Statements

This news release contains forward-looking statements based on management's
current expectations, estimates and projections. All statements that address
expectations or projections about the future, including statements about the
Company's strategy for growth, product development, market position,
subscriptions, expected expenditures and financial results are forward-looking
statements. Forward-looking statements may be identified by words like
"expected," "anticipates," "plans," "intends," "projects," "should,"
"indicates," "continues," "subscriptions" and similar expressions. These
statements are not guarantees of future performance and involve a number of
risks, uncertainties and assumptions. Many factors, including those discussed
more fully elsewhere in this release and in FactSet's filings with the
Securities and Exchange Commission, particularly its latest annual report on
Form 10-K and quarterly reports on Form 10-Q, as well as others, could cause
results to differ materially from those stated. These factors include, but are
not limited to, the current status of the global economy; the ability to
integrate newly acquired companies and businesses; the stability of global
securities markets; the ability to hire qualified personnel; the maintenance
of the Company's leading technological position; the impact of global market
trends on the Company's revenue growth rate and future results of operations;
the negotiation of contract terms with corporate vendors, data suppliers and
potential landlords; the retention of key clients; the successful resolution
of ongoing audits by tax authorities; the continued employment of key
personnel; the absence of U.S. or foreign governmental regulation restricting
international business; and the sustainability of historical levels of
profitability and growth rates in cash flow generation.

About Non-GAAP Financial Measures

Financial measures in accordance with generally accepted accounting principles
("GAAP") including net income and diluted earnings per share have been
adjusted to report non-GAAP financial measures. These measures exclude
stock-based compensation expense and amortization of intangible assets.
FactSet uses these non-GAAP financial measures, both in presenting its results
to stockholders and the investment community, and in its internal evaluation
and management of the businesses. The Company believes that these financial
measures and the information they provide are useful to investors because it
permits investors to view the Company's performance using the same tools that
management uses to gauge progress in achieving its goals. Investors may
benefit from referring to these non-GAAP financial measures in assessing the
Company's performance and when planning, forecasting and analyzing future
periods and may also facilitate comparisons to its historical performance. The
presentation of this financial information is not intended to be considered in
isolation or as a substitute for the financial information prepared and
presented in accordance with GAAP. For more information on these non-GAAP
financial measures, please see page 8 of this release.

About Non-GAAP Free Cash Flow

The GAAP financial measure, cash flows provided by operating activities, has
been adjusted to report non-GAAP free cash flow that includes the cash cost
for taxes and changes in working capital, less capital expenditures. Included
in the just completed third quarter was $76.4 million of net cash provided by
operations and $6.2 million of capital expenditures. The presentation of free
cash flow is not intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance with GAAP.
FactSet uses this financial measure, both in presenting its results to
stockholders and the investment community, and in the Company's internal
evaluation and management of the businesses. Management believes that this
financial measure is useful to investors because it permits investors to view
the Company's performance using the same metric that management uses to gauge
progress in achieving its goals and is an indication of cash flow that may be
available to fund further investments in future growth initiatives.

About FactSet

FactSet Research Systems Inc. combines integrated financial information,
analytical applications, and client service to enhance the workflow and
productivity of the global investment community. The Company, headquartered in
Norwalk, Connecticut, was formed in 1978 and now conducts operations along
with its affiliates from more than 26 locations worldwide, including Boston,
New York, Chicago, San Mateo, London, Amsterdam, Frankfurt, Paris, Milan,
Dubai, Tokyo, Hong Kong, Hyderabad, Mumbai, Manila, and Sydney. To learn more
about FactSet, visit www.factset.com and follow us on Twitter:
www.twitter.com/factset.

                                                         
FactSet Research Systems Inc.                             
Consolidated Statements of Income -                       
Unaudited
                                      Three Months Ended  Nine Months Ended
                                       May 31,           May 31,
                                                                 
(In thousands, except per share data)  2012     2011     2012    2011
Revenues                               $202,311 $183,647 $598,130 $534,571
Operating expenses                                                
                                                                  
Cost of services                       68,878   62,224   203,243  179,146
Selling, general and administrative  64,939   59,600   192,524  176,080
Total operating expenses               133,817   121,824   395,767   355,226
                                                                 
Operating income                       68,494    61,823    202,363   179,345
Other income                           483    172     1,256   429
Income before income taxes             68,977    61,995    203,619   179,774
                                                                 
Provision for income taxes            20,997   18,684   63,349   49,608
Net income                             $47,980  $43,311  $140,270 $130,166
                                                                 
Diluted earnings per common share      $1.05    $0.92    $3.05    $2.75
Diluted weighted average common shares 45,736    47,154    45,971    47,418
                                                                 

FactSet Research Systems Inc.                                     
                                                                   
Consolidated Statements of Financial Condition -                   
Unaudited                                                          

                                                       May 31,     August 31,
(In thousands)                                          2012       2011
ASSETS                                                             
Cash and cash equivalents                               $228,530  $181,685
Investments                                             13,566     --
Accounts receivable, net of reserves               66,568     75,004
Prepaid taxes                                           2,792      --
Deferred taxes                                          3,803      4,008
Prepaid expenses and other current assets               13,436    12,473
Total current assets                                    328,695     273,170
                                                                  
Property, equipment, and leasehold improvements, net    77,173    81,620
Goodwill                                                221,757   228,265
Intangible assets, net                                  38,298   46,310
Deferred taxes                                          22,34     20,166
Other assets                                            6,252     7,909
TOTAL ASSETS                                            $694,519   $657,440
                                                                  
LIABILITIES                                                        
                                                                   
Accounts payable and accrued expenses                   $28,416    $24,603
Accrued compensation                                    33,980   41,536
Deferred fees                                           29,901    28,252
Taxes payable                                           --        2,867
Dividends payable                                       13,893    12,165
Total current liabilities                               106,190   109,423
Deferred taxes                                          2,536      3,712
Taxes payable                                           5,249      7,204
Deferred rent and other non-current liabilities         20,158     21,913
TOTAL LIABILITIES                                       $134,133    $142,252
                                                                  
STOCKHOLDERS' EQUITY                                               
Common stock                                            $455       $614
Additional paid-in capital                              125,723    432,538
Treasury stock, at cost                                 (60,559)  (824,382)
Retained earnings                                       524,903 912,078
Accumulated other comprehensive loss                    (30,136)  (5,660)
TOTAL STOCKHOLDERS' EQUITY                              560,386    515,188
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY              $694,519   $657,440

FactSet Research Systems Inc.                                  
                                                               
Consolidated Statements of Cash Flows - Unaudited              
                                                              
(In thousands)                                      Nine Months Ended
                                                     May 31,
                                                    2012       2011
                                                              
CASH FLOWS FROM OPERATING ACTIVITIES                           
Net income                                           $140,270  $130,166
Adjustments to reconcile net income to net cash                
provided by operating activities
Depreciation and amortization                       25,046    27,950
Stock-based compensation expense                    17,074    15,352
Deferred income taxes                               (3,149)   (483)
Gain on sale of assets                              (1)       (3)
Tax benefits from share-based payment arrangements  (10,441)  (17,073)
Changes in assets and liabilities                             
Accounts receivable, net of reserves                8,331     (7,844)
Accounts payable and accrued expenses               939       (1,511)
Accrued compensation                                (6,587)   (17,179)
Deferred fees                                       1,680     4,987
Taxes payable, net of prepaid taxes                 3,093     8,919
Prepaid expenses and other assets                   439       (5,150)
Deferred rent and other non-current liabilities     (1,180)   (166)
Other working capital accounts, net                 (618)     (969)
Net cash provided by operating activities            174,896   136,996
                                                              
CASH FLOWS FROM INVESTING ACTIVITIES                           
                                                               
Purchases of investments                             (15,000) --
Purchases of property, equipment and leasehold       (16,863)   (22,806)
improvements, net of proceeds from dispositions
Net cash used in investing activities                (31,863)  (22,806)
CASH FLOWS FROM FINANCING ACTIVITIES                           
Dividend payments                                    (36,183)  (31,655)
Repurchase of common stock                           (87,112)  (132,951)
Proceeds from employee stock plans                   27,476    37,936
Tax benefits from share-based payment arrangements  10,441     17,073
Net cash used in financing activities                (85,378)   (109,597)
Effect of exchange rate changes on cash and cash     (10,810)   8,334
equivalents
Net increase in cash and cash equivalents            46,845     12,927
Cash and cash equivalents at beginning of period     181,685    195,741
Cash and cash equivalents at end of period           $228,530  $208,668

Reconciliation of Non-GAAP Financial Measures

Financial measures in accordance with GAAP including net income and diluted
earnings per share have been adjusted in this earnings release to report
non-GAAP financial measures. FactSet uses these non-GAAP financial measures,
both in presenting its results to stockholders and the investment community,
and in its internal evaluation and Company believes that these financial
measures and the information they provide are useful to investors because it
permits investors to view the Company's performance using the same tools that
management uses to gauge progress in achieving its goals. Non-GAAP measures
may also facilitate comparisons to FactSet's historical performance. 

(Unaudited)                                     Three Months Ended 
                                                May 31,
(In thousands, except per share data)           2012        2011        Change

                                                                     
                                                                     
GAAP Net income                                 $47,980     $43,311         
Stock-based compensation, net of tax (a)        3,584       3,475           
Amortization of intangible assets from          1,259       1,462           
acquisitions, net of tax (a)
Non-GAAP net income                             $52,823     $48,248     9.5% 
GAAP Diluted earnings per common share          $ 1.05      $ 0.92          
Stock-based compensation, net of tax            0.08        0.07            
Amortization of intangible assets from          0.03        0.03            
acquisitions, net of tax
Non-GAAP diluted earnings per share (b)         $ 1.15      $ 1.02      12.7 %

(a) For the purposes of calculating the non-GAAP measures above,
stock-based compensation expense and amortization of intangible assets are
taxed at the effective tax rates. For the three months ended May 31, 2012, the
effective tax rate was 30.4%. For the three months ended May 31, 2011, the
effective tax rate was 30.1%.

(b) The sum of the diluted earnings per share may not equal the totals
above due to rounding.

CONTACT: Rachel Stern
         FactSet Research Systems Inc.
         203.810.1000

FactSet Research Systems Inc.