Thomson Reuters Reports Third-Quarter 2012 Results

FSC / Press Release 
Thomson Reuters Reports Third-Quarter 2012 Results 
* Revenues grew 1% before currency* Adjusted EBITDA of $864 million with a
margin of 27.3%
* Underlying operating profit of $585 million with a margin of 18.5%
* Adjusted earnings per share were $0.54, unchanged from the third quarter of
2011
* 2012 Outlook affirmed 
NEW YORK, November 2, 2012  - Thomson Reuters (TSX / NYSE: TRI), the world's
leading source of intelligent information for businesses and professionals,
today reported results for the third quarter ended September 30, 2012. The
company reported revenues from ongoing businesses of $3.2 billion, a 1% increase
before currency. Adjusted EBITDA decreased 5% from the prior-year period and the
corresponding margin was 27.3% versus 28.5% in the third quarter of 2011.
Underlying operating profit decreased 15% and the corresponding margin was 18.5%
versus 21.6% in the prior-year period. The third quarter of 2011 was the
high-water mark for adjusted EBITDA and underlying operating profit margins last
year. 
the world's leading source of intelligent information for businesses and
professionals, today reported results for the third quarter ended September 30,
2012. The company reported revenues from ongoing businesses of $3.2 billion, a
1% increase before currency. Adjusted EBITDA decreased 5% from the prior-year
period and the corresponding margin was 27.3% versus 28.5% in the third quarter
of 2011. Underlying operating profit decreased 15% and the corresponding margin
was 18.5% versus 21.6% in the prior-year period. The third quarter of 2011 was
the high-water mark for adjusted EBITDA and underlying operating profit margins
last year. 
Adjusted earnings per share (EPS) were $0.54, unchanged from the prior-year
period. 
"Third-quarter results met our expectations even as the market environment
remained challenging," said James C. Smith, chief executive officer of Thomson
Reuters. "Our resilient subscription-based businesses performed well, while
non-recurring revenues were weaker due to difficult prior-year comparables and
lower transaction volumes. That said, we continue to make significant progress
toward achieving our operational priorities and we remain on track to achieve
our full-year outlook." 
"Furthermore, despite what is anticipated to be a continued challenging
environment on the top-line, we expect further operational improvements to drive
continued efficiencies as we work to achieve sustainable, predictable free cash
flow improvement and earnings growth," continued Mr. Smith. 
-***- 
Consolidated Financial Highlights 
Three Months Ended September 30, 
(Millions of U.S. dollars, except EPS and margins)
IFRS Financial           2012     2011   Change
  Measures
Revenues               $3,216   $3,453      -7%
Operating profit         $390     $659     -41%
Diluted earnings        $0.56    $0.44      27%
  per share (EPS)
Cash flow from           $607     $576       5%
  Operations 
Non-IFRS Financial                       Change  Change Before Currency
  Measures(1)            2012     2011
Revenues from          $3,165   $3,197      -1%                      1%
  ongoing businesses
Adjusted EBITDA          $864     $911      -5%                     -4%
Adjusted EBITDA         27.3%    28.5%   -120bp                  -150bp
  Margin
Underlying operating     $585     $690     -15%                    -14%
  Profit
Underlying operating    18.5%    21.6%   -310bp                  -320bp
  profit margin
Adjusted earnings       $0.54    $0.54       0%
  per share (EPS)
Free cash flow           $376     $360       4%
Free cash flow from      $369     $319      16%
  ongoing operations 
-****- 
--------------------
(1) These and other non-IFRS financial measures are defined and reconciled to
the most directly comparable IFRS measures in the tables appended to this news
release. Additional information is provided in the explanatory note at the end
of this news release. 
* Revenues from ongoing businesses were $3.2 billion, a 1% increase before
currency. 
* Adjusted EBITDA decreased 5% and the corresponding margin was 27.3% versus
28.5% in the prior-year period. The margin declined as the benefit from no
integration expenses in the quarter (versus $39 million in the prior-year
period) was offset by lower organic revenue growth; a decrease in high-margin
revenues compared to the prior-year period; and anticipated increases in
expenses in Financial & Risk related to investments in customer service and
customer administration. 
* Underlying operating profit decreased 15% and the corresponding margin was
18.5% versus 21.6% in the prior-year period due to higher depreciation and
amortization from investments made in prior periods, planned increases in
expenses and nominal revenue growth. 
* Adjusted EPS was $0.54, unchanged from the prior-year period. Anticipated
lower underlying operating profit was offset by the elimination of integration
expenses and a lower tax rate.  Foreign exchange had a $0.01 negative impact on
adjusted EPS. 
Third-Quarter Business Segment Highlights
Unless otherwise noted, all revenue growth comparisons in this news release are
before the impact of foreign currency as Thomson Reuters believes this provides
the best basis to measure the performance of its business. 
Financial & Risk 
* Revenues were flat compared to the prior-year period as the benefit from
acquisitions was offset by a decline in organic growth. Growth in Marketplaces
and Governance, Risk & Compliance was offset by a decline in the Trading
business. Investors revenues were unchanged from the prior-year period. 
* Recurring subscription-related revenues decreased 1%. Transactions-related
revenues increased 4% solely due to acquisitions. Recoveries revenues decreased
1% and Outright revenues increased 2%. 
* By geography, revenues in Europe, Middle East and Africa (EMEA) were flat,
revenues in the Americas were up 1% while revenues in Asia declined 1%,
primarily related to Japan. 
* EBITDA was $440 million, down 16%, with a related margin of 24.7%. EBITDA
margin decreased 370 basis points from the prior-year period due to lower
organic revenues, planned investments in customer service and customer
administration. 
* Operating profit was $283 million, down 26%, with a related margin of 15.9%.
Operating profit margin decreased 480 basis points due to the same items that
impacted the EBITDA margin and higher depreciation and amortization from product
investments made in prior periods. 
* Eikon desktops totaled 25,600 at the end of the third quarter of 2012, up
approximately 35% from the end of the second quarter of 2012. 
Trading 
* Revenues decreased 4% with growth in Commodities & Energy, Data Feeds &
Platform and Elektron hosting offset by desktop cancellations in Exchange Traded
Instruments and Fixed Income.  Omgeo declined by 17% due to low equity
transaction volumes. 
* Recoveries revenues decreased 2%. 
Investors 
* Revenues were flat compared to the prior-year period. Investment Management
declined 4%, but continued to improve compared to the second quarter (down 5%)
and first quarter (down 10%). Investment Management continues to be impacted by
weakness in Europe and Asia. Enterprise Content revenues grew 12% (12% of
Investors total revenues). 
* Corporates revenues were down 1%. Wealth Management and Banking & Advisory
were up 1% and down 1%, respectively, versus the prior-year period. 
Marketplaces 
* Revenues increased 7% due to acquisitions with organic revenues down 2%.
Tradeweb was up 13% related to the acquisition of Rafferty in 2011. 
* Foreign exchange-related revenues increased 5% due to the acquisition of
FXall. Foreign exchange-related organic revenues however declined 2% as overall
market volumes declined compared to the prior-year period. 
Governance, Risk & Compliance 
* Revenues grew 17%, all organic, to $55 million driven by new sales and
continued strong demand for risk and compliance solutions. 
* Thomson Reuters GRC business was recently named by Gartner, Inc. to the
prestigious "Leaders Quadrant of the Enterprise Governance, Risk and Compliance
Platforms Magic Quadrant." The announcement was made following Gartner's
evaluation of Thomson Reuters Enterprise GRC solution on completeness of vision
and ability to execute. 
Legal 
* Revenues increased 2% (1% organic). US Law Firm Solutions grew slightly driven
by a 13% increase in Business of Law revenues (FindLaw and Elite) while
research-related revenues declined 3%. Corporate, Government and Academic
revenues rose 1%. Global businesses grew 9% with a strong performance by Latin
American operations. 
* US print revenues declined 9%, partly timing-related.  Excluding US print,
revenues grew 5% (3% organic). 
* EBITDA was up slightly from the prior-year period and the associated margin
increased 10 basis points to 39.4%. Excluding the benefit of currency, the
margin declined 40 basis points. 
* Operating profit was flat and the associated margin was 30.8% compared to
31.3% in the prior-year period. Excluding the benefit of currency, the margin
declined 100 basis points due to the decline in print revenues and higher
depreciation and amortization expense. 
* 73% of Westlaw revenue is now converted to WestlawNext. 
Tax & Accounting 
* Revenues increased 10% (3% organic) driven by acquisitions and strong growth
in revenues from the ONESOURCE suite and software sales to accounting firms.
Organic revenue growth was partly impacted by difficult comparisons to the
prior-year period. 
* EBITDA increased 3% and the corresponding margin decreased 120 basis points to
24.8% due mainly to acquisition dilution and a change in business mix. 
* Operating profit decreased 8% and the corresponding margin decreased 230 basis
points to 13.0% due to softer revenue growth and software amortization from
acquisitions. 
* Tax & Accounting is a seasonal business with a significant percentage of its
operating profit traditionally generated in the fourth quarter. Small movements
in the timing of revenues and expenses can impact margins in any given quarter
for the Tax & Accounting business. Full-year margins are more reflective of the
segment's underlying performance. 
Intellectual Property & Science 
* Revenues were up 3% (flat organic) impacted by strong prior-year comparables.
IP Solutions grew 3%, Life Sciences increased 8% and Scientific & Scholarly
Research revenues decreased 6% due to strong back-file sales recorded in the
prior-year period that did not repeat this year. 
* EBITDA decreased 9% with the corresponding margin declining 380 basis points
to 32.9% primarily due to acquisition dilution associated with MarkMonitor and a
difficult comparison to the prior-year period when the business benefited from
significant back-file sales. 
* Operating profit decreased 14% with the corresponding margin declining 470
basis points to 25.1%. The decline in the margin reflected the same items that
impacted the EBITDA margin as well as an increase in depreciation and
amortization due to products released in the second half of 2011. 
* Small movements in the timing of revenues and expenses can impact margins in
any given quarter for the Intellectual Property & Science business. Full-year
margins are more reflective of the segment's underlying performance. 
-***- 
Consolidated Financial Highlights - Nine Months 
Nine Months Ended September 30, 
(Millions of U.S. dollars, except EPS and margins)
IFRS Financial            2012       2011    Change
  Measures
Revenues                $9,879    $10,230       -3%
Operating profit        $2,094     $1,888       11%
Diluted earnings         $2.04      $1.41       45%
  per share (EPS)
Cash flow from          $1,750     $1,655        6%
  operations 
Non-IFRS Financial                           Change              Change
  Measures[1]             2012       2011               Before Currency
Revenues from           $9,541     $9,435        1%                  3%
ongoing businesses
Adjusted EBITDA         $2,581     $2,516        3%                  4%
Adjusted EBITDA          27.1%      26.7%      40bp                30bp
margin
Underlying operating    $1,747     $1,895       -8%                 -6%
profit
Underlying operating     18.3%      20.1%    -180bp              -180bp
profit margin
Adjusted earnings        $1.52      $1.42        7%
per share (EPS)
Free cash flow          $1,030       $933       10%
Free cash flow from       $969       $785       23%
ongoing operations 
-****- 
* Revenues from ongoing businesses were $9.5 billion, a 3% increase before
currency. 
* Adjusted EBITDA increased 3% and the corresponding margin was 27.1% versus
26.7% in the prior-year period as higher revenues and the elimination of
integration expenses in 2012 offset the planned investments in customer service
and customer administration. 
* Underlying operating profit decreased 8% and the corresponding margin was
18.3% versus 20.1% in the prior-year period due to higher depreciation and
amortization expense related to new product launches and planned increases in
expenses. 
* Adjusted EPS was $1.52 compared to $1.42 in the prior-year period. The
increase was primarily attributable to the elimination of integration expenses
and a lower tax rate, partly offset by lower underlying operating profit. 
* Free cash flow was $1.03 billion, up 10% compared to the prior-year period.
Free cash flow from ongoing operations was $969 million, up 23% from the same
period in 2011. 
Corporate & Other (Including Media) 
Third-quarter Media revenues were $79 million, up 1% from the prior-year period
(organic growth of 1%).  Third-quarter Corporate & Other costs were $43 million
compared to $48 million in the prior-year period. 
Media revenues for the first nine months of 2012 were $244 million, up 1% from
the prior-year period (1% organic). Corporate & Other costs for the first nine
months of 2012 were $178 million compared to $186 million in the same period of
2011. 
Business Outlook (Before Currency) 
Thomson Reuters today reaffirmed its business outlook for 2012 that was
previously communicated in February. The company continues to expect its: 
* revenues to grow low single-digits in 2012; 
* adjusted EBITDA margin to range between 27% and 28% in 2012; 
* underlying operating profit margin to range between 18% and 19% in 2012 due to
higher depreciation and amortization expense; and 
* reported free cash flow to grow 5% to 10% and free cash flow from ongoing
operations to grow 15% to 20% in 2012. 
The information in this section is forward-looking and should be read in
conjunction with the section below entitled "Special Note Regarding
Forward-Looking Statements, Material Assumptions and Material Risks." 
Dividend and Share Repurchases 
As previously announced, Thomson Reuters increased its 2012 annual dividend by
$0.04 per share to $1.28 per share. A quarterly dividend of $0.32 per share is
payable on December 17, 2012 to common shareholders of record as of November 21,
2012. 
Year-to-date through October 30, 2012, the company repurchased 5.9 million
shares for an aggregate cost of approximately $168 million pursuant to its
Normal Course Issuer Bid (NCIB). The company repurchased 4.3 million shares
under the current NCIB program which was renewed in May 2012 and authorizes the
company to purchase up to 15 million shares. 
Thomson Reuters 
Thomson Reuters is the world's leading source of intelligent information for
businesses and professionals. We combine industry expertise with innovative
technology to deliver critical information to leading decision makers in the
financial and risk, legal, tax and accounting, intellectual property and science
and media markets, powered by the world's most trusted news organization. With
headquarters in New York and major operations in London and Eagan, Minnesota,
Thomson Reuters employs approximately 60,000 people and operates in over 100
countries. Thomson Reuters shares are listed on the Toronto and New York Stock
Exchanges (symbol: TRI). For more information, go to
http://www.thomsonreuters.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. Thomson Reuters
uses these non-IFRS financial measures as supplemental indicators of its
operating performance and financial position. 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. 
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL ASSUMPTIONS AND
MATERIAL RISKS 
Certain statements in this news release, including, but not limited to,
statements in the "Business Outlook (Before Currency)" section and Mr. Smith's
comments, are forward-looking. These forward-looking statements are based on
certain assumptions and reflect our company's current expectations. As a result,
forward-looking statements are subject to a number of risks and uncertainties
that could cause actual results or events to differ materially from current
expectations. There is no assurance that the events described in any
forward-looking statement will materialize. A business outlook is provided for
the purpose of presenting information about current expectations for 2012. 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. 
The company's 2012 business outlook is based on various external and internal
assumptions. Economic and market assumptions include, but are not limited to,
positive GDP growth in the countries where Thomson Reuters operates led by
rapidly developing economies and a continued increase in the number of
professionals around the world and their demand for high quality information and
services. Internal financial and operational assumptions include, but are not
limited to, the successful execution of the company's ongoing product release
programs, globalization strategy, other growth initiatives and efficiency
initiatives. 
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, changes in the
general economy (including the current European Union debt crisis); actions of
competitors; failure to develop new products, services, applications and
functionalities to meet customers' needs, attract new customers or expand into
new geographic markets; increased accessibility to free or relatively
inexpensive information sources; failures or disruptions of network systems or
the Internet; failure to maintain a high renewal rate for subscription-based
services; dependency on third parties for data, information and other services;
changes to law and regulations, including the impact of the Dodd-Frank
legislation and similar financial services laws around the world; failure to
adapt to recent organizational changes; failure to recruit, motivate and retain
high quality management and key employees; failure to meet the challenges
involved in operating globally; failure to protect the brands and reputation of
Thomson Reuters; additional impairment of goodwill and identifiable intangible
assets; inadequate protection of intellectual property rights; threat of legal
actions and claims; risk of antitrust/competition-related claims or
investigations; downgrading of credit ratings and adverse conditions in the
credit markets; fluctuations in foreign currency exchange and interest rates;
the effect of factors outside of the control of Thomson Reuters on funding
obligations in respect of pension and post-retirement benefit arrangements;
actions or potential actions that could be taken by the company's principal
shareholder, The Woodbridge Company Limited; and failure to derive fully the
anticipated benefits from existing or future acquisitions, joint ventures,
investments or dispositions. These and other 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. Thomson Reuters annual and quarterly reports are also available in
the "Investor Relations" section of http://www.thomsonreuters.com. 
CONTACT 
MEDIA
Carla Jones
Senior Vice President
+1 646 223 5285
carla.jones@thomsonreuters.com 
INVESTORS
Frank J. Golden
Senior Vice President, Investor Relations
+1 646 223 5288
frank.golden@thomsonreuters.com 
Thomson Reuters will webcast a discussion of its third-quarter 2012 results
today beginning at 8:30 a.m. Eastern Daylight Time (EDT).  You can access the
webcast by visiting the "Investor Relations" section of
http://www.thomsonreuters.com.  An archive of the webcast will be available
following the presentation. 
-***- 
Thomson Reuters Corporation
Business Segment Information
(millions of U.S. dollars)
(unaudited) 
Three Months 
Ended 
September                        Change 
30, 
----------------       ------------------------------------- 
2012  2011(1)          Total  Before Currency   Organic
Revenues
 Trading              $816    $887             -8%             -4%          -4%
 Investors             604     616             -2%              0%          -1%
 Marketplaces          303     289              5%              7%          -2%
 Governance,            55      47             17%             17%          17%
 Risk &
 Compliance 
----------------
Financial & Risk     1,778   1,839             -3%              0%          -2%
Legal                  830     821              1%              2%           1%
Tax & Accounting       262     242              8%             10%           3%
Intellectual           219     215              2%              3%           0%
Property
& Science
Corporate & Other       79      83             -5%              1%           1%
(includes Media)
Eliminations           (3)     (3) 
----------------
Revenues from        3,165   3,197             -1%              1%          -1%
ongoing
businesses (2)
Other businesses(3)     51     256 
----------------
Revenues            $3,216  $3,453             -7% 
---------------- 
Change           Margin 
----------------------------------
Adjusted EBITDA (4)                    Total Before Currency  2012  2011
Financial & Risk      $440    $523      -16%            -13% 24.7% 28.4%
Legal                  327     323        1%              1% 39.4% 39.3%
Tax & Accounting        65      63        3%              3% 24.8% 26.0%
Intellectual Property   72      79       -9%             -8% 32.9% 36.7%
  & Science
Corporate & Other     (40)    (38)
  (includes Media)
Integration programs     -    (39)
  expenses 
--------------
Adjusted EBITDA       $864    $911       -5%             -4% 27.3% 28.5% 
-------------- 
Underlying Operating
  Profit (5)
Financial & Risk      $283    $380      -26%            -22% 15.9% 20.7%
Legal                  256     257        0%             -1% 30.8% 31.3%
Tax & Accounting        34      37       -8%             -8% 13.0% 15.3%
Intellectual Property   55      64      -14%            -14% 25.1% 29.8%
  & Science
Corporate & Other     (43)    (48)
  (includes Media) 
--------------
Underlying operating  $585    $690      -15%            -14% 18.5% 21.6%
  profit 
-------------- 
-****- 
-***- 
Thomson Reuters Corporation
Business Segment Information
 (millions of U.S. dollars)
(unaudited) 
Nine Months Ended 
September 30,               Change 
------------------------------------------------- 
2012  2011  (1)  Total Before Currency Organic
Revenues
 Trading              $2,515    $2,668    -6%             -3%      -3%
 Investors             1,815     1,866    -3%             -1%      -2%
 Marketplaces            893       844     6%              8%       1%
 Governance,             158       104    52%             53%      17%
 Risk &
 Compliance 
------------------
Financial & Risk       5,381     5,482    -2%              1%      -1%
Legal                  2,425     2,378     2%              3%       1%
Tax & Accounting         855       709    21%             22%       6%
Intellectual Property    644       627     3%              4%       2%
& Science
Corporate & Other        244       249    -2%              1%       1%
(includes Media)
Eliminations             (8)      (10) 
------------------
Revenues from          9,541     9,435     1%              3%       0%
Ongoing
businesses (2)
Other businesses (3)     338       795 
------------------
Revenues              $9,879   $10,230    -3% 
------------------ 
Change           Margin 
----------------------------------
Adjusted EBITDA (4)                Total Before Currency  2012  2011
Financial & Risk      $1,359  $1,514  -10%             -7% 25.3% 27.6%
Legal                    916     898    2%              2% 37.8% 37.8%
Tax & Accounting         245     196   25%             26% 28.7% 27.6%
Intellectual Property    219     216    1%              2% 34.0% 34.4%
& Science
Corporate & Other      (158)   (157)
(includes Media)
Integration programs       -   (151)
expenses 
----------------
Adjusted EBITDA       $2,581  $2,516    3%              4% 27.1% 26.7% 
---------------- 
Underlying Operating
Profit (5)
Financial & Risk        $891  $1,084  -18%            -14% 16.6% 19.8%
Legal                    707     697    1%              1% 29.2% 29.3%
Tax & Accounting         158     127   24%             25% 18.5% 17.9%
Intellectual Property    169     173   -2%             -2% 26.2% 27.6%
& Science
Corporate & Other      (178)   (186)
(includes Media) 
----------------
Underlying operating  $1,747  $1,895   -8%             -6% 18.3% 20.1%
profit 
---------------- 
-****- 
-***- 
Thomson Reuters Corporation
Reconciliation of Operating Profit to Adjusted EBITDA (4)
(millions of U.S. dollars)
(unaudited) 
Three Months         Nine Months 
Ended                Ended 
September            September 
30,                  30, 
------------------------------------------- 
2012    2011 Change  2012    2011  Change 
Operating profit              $390   $659   -41% $2,094  $1,888    11%
Adjustments:
Amortization of other          158    152           459     446
identifiable intangible
assets
Integration programs             -     39             -     151
expenses
Fair value adjustments          34  (102)            21   (112)
Other operating losses          18     17         (802)   (302)
(gains), net
Operating profit from         (15)   (75)          (25)   (176)
Other businesses (1),(3) 
--------------      ----------------
Underlying operating          $585   $690   -15% $1,747  $1,895    -8%
profit (1)
Adjustments:
  Integration programs           -   (39)             -   (151)
  expenses
  Depreciation and             279    260           834     772
  amortization of
  computer software
  (excluding Other
  businesses  (1), (3)) 
--------------      ----------------
Adjusted EBITDA (1)           $864   $911    -5% $2,581  $2,516     3% 
--------------      ---------------- 
Underlying operating         18.5%  21.6% -310bp  18.3%   20.1% -180bp
profit margin 
--------------      ----------------
Adjusted EBITDA margin       27.3%  28.5% -120bp  27.1%   26.7%   40bp 
--------------      ---------------- 
-****- 
-***- 
Thomson Reuters Corporation
Reconciliation of Earnings
from Continuing Operations to Adjusted EBITDA (4)
 (millions of U.S. dollars)
 (unaudited) 
Three Months             Nine Months 
Ended                   Ended 
September 30,           September 30, 
-------------------------------------------- 
2012   2011  Change  2012    2011 Change 
Earnings from             $472    $381    24% $1,736 $1,208    44%
continuing
operations
Adjustments:
  Tax (benefit)          (140)     145           106    371 
expense
  Other finance           (30)      35          (44)     19 
(income) 
costs
  Net interest              90     102           295    301 
expense
  Amortization             158     152           459    446 
of other 
identifiable 
intangible 
assets
  Amortization             175     155           516    481 
of computer
  software
  Depreciation             104     107           323    324 
-----------------      ---------------
EBITDA                    $829  $1,077   -23% $3,391 $3,150     8%
Adjustments:
  Share of post tax        (2)     (4)             1   (11)
  (earnings) losses
  in equity method
  investees
  Other operating           18      17         (802)  (302)
  losses (gains), net
  Fair value                34   (102)            21  (112)
  adjustments
  EBITDA from Other       (15)    (77)          (30)  (209)
  businesses  (1), (3) 
-----------------      ---------------
Adjusted EBITDA  (1)   ]$864      $911    -5% $2,581 $2,516     3% 
-----------------      --------------- 
-****- 
-***- 
Thomson Reuters Corporation
Reconciliation of Underlying Operating Profit (5) to Adjusted EBITDA (4) by
Business Segment
(millions of U.S. dollars)
(unaudited) 
-***- 
----------------------------------------------------------- 
Three Months Ended 
September 30, 2012
----------------------------------------------------------- 
Add: 
Depreciation 
and 
Underlying    Amortization 
Operating      of Computer      Adjusted 
Profit      Software **        EBITDA
----------------------------------------------------------
Financial & Risk       $283             $157          $440
Legal                   256               71           327
Tax & Accounting         34               31            65
Intellectual Property
& Science                55               17            72
Corporate & Other
(includes Media)        (43)               3          (40)
Integration programs
expenses                 na               na             -
----------------------------------------------------------- 
$585             $279           $864 
----------------------------------------------------------- 
Three Months Ended 
September 30, 2011(1)
----------------------------------------------------------- 
Add: 
Depreciation 
and 
Underlying    Amortization 
Operating      of Computer       Adjusted 
Profit      Software **         EBITDA
----------------------------------------------------------
Financial & Risk      $380             $143           $523
Legal                  257               66            323
Tax & Accounting        37               26             63
Intellectual Property
& Science               64               15             79
Corporate & Other
(includes Media)       (48)              10            (38)
Integration programs
expenses                na               na            (39)
------------------------------------------------------------ 
$690             $260            $911 
-****- 
-***- 
----------------------------------------------------------- 
Nine Months Ended 
September 30, 2012
----------------------------------------------------------- 
Add: 
Depreciation 
and 
Underlying    Amortization 
Operating      of Computer      Adjusted 
Profit      Software **        EBITDA
----------------------------------------------------------
Financial & Risk       $891             $468        $1,359
Legal                   707              209           916
Tax & Accounting        158               87           245
Intellectual Property
& Science               169               50           219
Corporate & Other
(includes Media)       (178)              20         (158)
Integration programs
expenses                 na               na             -
---------------------------------------------------------- 
$1,747             $834        $2,581 
---------------------------------------------------------- 
Nine Months Ended 
September 30, 2011(1)
---------------------------------------------------------- 
Add: 
Depreciation 
and 
Underlying    Amortization 
Operating      of Computer       Adjusted 
Profit      Software **         EBITDA
----------------------------------------------------------
Financial & Risk    $1,084             $430         $1,514
Legal                  697              201            898
Tax & Accounting       127               69            196
Intellectual Property
& Science              173               43            216
Corporate & Other
(includes Media)      (186)              29           (157)
Integration programs
expenses                na               na           (151)
----------------------------------------------------------- 
$1,895             $772          $2,516
----------------------------------------------------------- 
-****- 
-----------------------------
**excludes Other businesses (1)(2)
na - not applicable 
-***- 
Thomson Reuters Corporation
Reconciliation of Earnings Attributable to Common Shareholders
to Adjusted Earnings from Continuing Operations (6)
(millions of U.S. dollars, except as otherwise indicated and except for per
share data)
(unaudited) 
Three Months    Nine Months 
Ended          Ended 
September      September 
30,            30, 
------------------------------ 
2012    2011  2012    2011
Earnings attributable           $462   $369 $1,698 $1,182
to common
shareholders
Adjustments:
  Operating profit              (15)   (75)   (25)  (176)
  from Other
  businesses (1), (3)
  Fair value                      34  (102)     21  (112)
  adjustments
  Other operating                 18     17  (802)  (302)
  losses (gains),
  net
  Other finance                 (30)     35    (44)    19
  (income) costs
  Share of post tax              (2)    (4)      1   (11)
  (earnings) losses
  in equity method
  investees
  Tax on above items             (3)     63    184    190
Interim period effective        (60)    (15)    (8)   (10)
tax rate normalization(7)
Discrete tax items             (115)     13  (224)   (33)
Amortization of other            158    152    459    446
identifiable intangible
assets
Discontinued operations          (2)      -     1     (2)
Dividends declared on              -      -    (2)    (2)
preference shares 
------------------------------
Adjusted earnings from        $445     $453  $1,259 $1,189
continuing operations(1) 
------------------------------
Adjusted earnings per         $0.54   $0.54  $1.52  $1.42
share from continuing
operations(1) 
------------------------------ 
------------------------------
Diluted weighted average       828.4  836.7  829.7  838.2
common shares (in millions) 
------------------------------ 
-****- 
-***- 
Thomson Reuters Corporation
Reconciliation of Net Cash Provided by Operating Activities
to Free Cash Flow from Ongoing Operations (8)
(millions of U.S. dollars)
(unaudited) 
Three Months  Nine Months 
Ended        Ended 
September     September 
30,          30, 
--------------------------- 
2012  2011   2012   2011
Net cash provided by    $607  $576 $1,750 $1,655
operating activities
Capital expenditures,  (232) (218)  (726)  (759)
less proceeds from
disposals
Other investing            1     2      8     39
activities
Dividends paid on          -     -    (2)    (2)
preference shares 
---------------------------
Free cash flow           376   360  1,030    933
Remove: Other            (7)  (41)   (61)  (148)
businesses 
---------------------------
Free cash flow from     $369  $319   $969   $785
ongoing operations 
--------------------------- 
-****- 
Footnotes 
(1) Prior-period amounts have been reclassified to reflect the current
presentation. 
(2) Revenues from ongoing businesses are revenues from reportable segments and
Corporate & Other (which includes the Media business) less eliminations. Other
businesses (see note (3) below) are excluded. 
(3) Other businesses are businesses that have been or are expected to be exited
through sale or closure that did not qualify for discontinued operations
classification. 
-***- 
(millions of U.S. dollars)    Three Months Nine Months 
Ended       Ended 
September    September 
30,         30, 
--------------------------
Other businesses                2012  2011   2012  2011
Revenues                         $51  $256   $338  $795 
-------------------------- 
Operating profit                 $15   $75    $25  $176
Depreciation and amortization      -     2      5    33
of computer software 
--------------------------
EBITDA                           $15   $77    $30  $209 
-------------------------- 
-****- 
(4) Thomson Reuters defines adjusted EBITDA as underlying operating profit
excluding the related depreciation and amortization of computer software but
including integration programs expense. Adjusted EBITDA margin is adjusted
EBITDA expressed as a percentage of revenues from ongoing businesses. 
(5) Underlying operating profit is operating profit from reportable segments and
Corporate & Other (includes Media). Underlying operating profit margin is the
underlying operating profit expressed as a percentage of revenues from ongoing
businesses. 
(6) Adjusted earnings from continuing operations and adjusted earnings per share
from continuing operations include dividends declared on preference shares and
integration programs expense, but exclude the pre-tax impacts of amortization of
other identifiable intangible assets as well as the post-tax impacts of fair
value adjustments, other operating (gains) and losses, certain impairment
charges, the results of Other businesses (see note (3) above), other finance
(income) costs, Thomson Reuters share of post-tax (earnings) losses in equity
method investees, discontinued operations and other items affecting
comparability. Adjusted earnings per share from continuing operations is
calculated using diluted weighted average shares and does not represent actual
earnings or loss per share attributable to shareholders. 
(7) Adjustment to reflect income taxes based on estimated full-year effective
tax rate. Reported earnings or loss for interim periods reflect income taxes
based on the estimated effective tax rates of each of the jurisdictions in which
Thomson Reuters operates. The adjustment reallocates estimated full-year income
taxes between interim periods, but has no effect on full year income taxes. 
(8) Free cash flow is net cash provided by operating activities less capital
expenditures, other investing activities and dividends paid on the company's
preference shares. Other businesses (see note (3) above) are also removed to
arrive at free cash flow from ongoing operations. 
-***- 
Thomson Reuters Corporation
Consolidated Income Statement
(millions of U.S. dollars, except per share data)
(unaudited) 
Three Months             Nine Months 
Ended                    Ended 
September                 September 
30,                       30, 
---------------------------------------------------- 
2012         2011         2012     2011 
Revenues                        $3,216       $3,453       $9,879  $10,230
Operating expenses             (2,371)      (2,363)      (7,289)  (7,393)
Depreciation                     (104)        (107)        (323)    (324)
Amortization of                  (175)        (155)        (516)    (481)
computer software
Amortization of other            (158)        (152)        (459)    (446)
identifiable intangible
assets
Other operating (losses)          (18)         (17)          802      302
gains,net 
----------------------------------------------------
Operating profit                   390          659        2,094    1,888
Finance costs, net:
 Net interest expense             (90)        (102)        (295)    (301)
 Other finance income               30         (35)           44     (19)
 (costs) 
----------------------------------------------------
Income before tax and              330          522        1,843    1,568
equity method investees
Share of posttax                     2            4          (1)       11
 earnings
(losses) in equity method
investees
Tax benefit (expense)              140        (145)        (106)    (371) 
----------------------------------------------------
Earnings from continuing           472          381        1,736    1,208
operations
Earnings (loss) from                 2            -          (1)        2
discontinued operations,
net of tax 
----------------------------------------------------
Net earnings                      $474         $381       $1,735   $1,210 
---------------------------------------------------- 
Earnings attributable to:
 Common shareholders               462          369        1,698    1,182
 Non-controlling                    12           12           37       28 
interests 
Basic earnings per share         $0.56        $0.44        $2.05    $1.41 
----------------------------------------------------
Diluted earnings per             $0.56        $0.44        $2.04    $1.41
  share 
---------------------------------------------------- 
Basic weighted average   826,257,191  834,645,519 827,804,739 835,624,471
common shares 
----------------------------------------------------
Diluted weighted average  828,405,144 836,712,254 829,747,967 838,203,018
common shares 
-****- 
-***- 
Thomson Reuters Corporation
Consolidated Statement of Financial Position
(millions of U.S. dollars)
(unaudited) 
September December 
30,       31, 
2012      2011 
-------------------
Assets
Cash and cash                    $769     $422
equivalents
Trade and other                 1,772    1,984
receivables
Other financial                    81      100
assets
Prepaid expenses                  604      641
and other current
assets 
-------------------
Current assets                  3,226    3,147
excluding assets
held for sale
Assets held for sale              141      767 
-------------------
Current assets                  3,367    3,914 
Computer hardware               1,364    1,509
and other property,
net
Computer software,              1,679    1,640
net
Other identifiable              8,215    8,471
intangible assets,
net
Goodwill                       16,583   15,932
Other financial                   390      425
assets
Other non-current                 552      535
assets
Deferred tax                       42       50 
-------------------
Total assets                  $32,192  $32,476 
------------------- 
Liabilities and equity
Liabilities
Current indebtedness           $1,007     $434
Payables, accruals              2,442    2,675
and provisions
Deferred revenue                1,138    1,379
Other financial                    97       81
liabilities 
-------------------
Current liabilities             4,684    4,569
excluding liabilities
associated with
assets held for sale
Liabilities associated             18       35
with assets held
for sale 
-------------------
Current liabilities             4,702    4,604 
Long-term indebtedness          6,255    7,160
Provisions and other            2,689    2,513
non-current liabilities
Other financial liabilities         8       27
Deferred tax                    1,176    1,422 
-------------------
Total liabilities              14,830   15,726 
Equity
Capital                        10,331   10,288
Retained earnings               8,197    7,633
Accumulated other             (1,508)  (1,516)
comprehensive loss 
-------------------
Total shareholders'            17,020   16,405
equity
Non-controlling                   342      345
interests 
-------------------
Total equity                   17,362   16,750 
-------------------
Total liabilities             $32,192  $32,476
and equity 
------------------- 
-****- 
-***- 
Thomson Reuters Corporation
Consolidated Statement of Cash Flow
(millions of U.S. dollars)
(unaudited) 
Three Months       Nine Months 
Ended             Ended 
September         September 
30,               30, 
---------------------------------- 
2012   2011     2012     2011
Cash provided by (used in):
Operating activities
Net earnings                    $474   $381   $1,735   $1,210
Adjustments for:
 Depreciation                    104    107      323      324
 Amortization of                 175    155      516      481
 computer software
 Amortization of other           158    152      459      446
 identifiable intangible
 assets
 Net losses (gains) on             11    (3)    (815)    (389)
 disposals of businesses
 and investments
 Deferred tax                    (97)   (55)    (216)    (229)
 Other                           (65)    (3)     (41)      161
Changes in working capital      (153)  (158)    (211)    (349)
and other items 
----------------------------------
Net cash provided by             607    576    1,750    1,655
operating activities 
---------------------------------- 
Investing activities
Acquisitions, net of         (1,015)  (388)  (1,275)  (1,114)
cash acquired
(Payments for) proceeds        (176)    (5)    1,807      505
from disposals, net of
taxes paid
Capital expenditures,          (232)   (218)    (726)    (759)
less proceeds from
disposals[
Other investing                    1      2        8       39
activities 
----------------------------------
Investing cash flows         (1,422)  (609)    (186)  (1,329)
from continuing
operations
Investing cash flows               -     12       90       51
from discontinued
operations 
----------------------------------
Net cash used in             (1,422)  (597)     (96)  (1,278)
investing activities 
---------------------------------- 
Financing activities
Repayments of debt                 -  (593)      (2)    (646)
Net borrowings                     -  1,083    (423)    1,063
(repayments) under
short-term loan
facilities
Repurchases of                     -  (319)    (168)    (319)
common shares
Dividends paid                     -      -      (2)      (2)
on preference
shares
Dividends paid                 (254)  (247)    (766)    (712)
on common
shares
Other financing                   32   (17)       52     (31)
activities 
----------------------------------
Net cash used in               (222)   (93)  (1,309)    (647)
 financing activities 
---------------------------------- 
Translation adjustments            5   (10)        2      (5)
  on cash and cash
  equivalents 
----------------------------------
(Decrease) increase in       (1,032)  (124)      347    (275)
  cash and cash
  equivalents
Cash and cash equivalents      1,801    713      422      864
  at beginning of period 
----------------------------------
Cash and cash equivalents       $769   $589     $769     $589
  at end of period 
---------------------------------- 
To view this release as a web page, please click on the following link:
http://www.usetdas.com/pr/thompsonreuters11022012.htm 
Maximum News Dissemination by FSCwire. http://www.fscwire.com 
Provider ID: 00020540
-0- Nov/02/2012 11:01 GMT