FactSet Research Systems Inc. Announces Management Changes; Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended February 28, 2015; Provides Earnings Guidance for the Third Quarter of 2015
Mar 17 15
FactSet Research Systems Inc. announced that Philip Snow, will succeed Philip Hadley as the company's chief executive. Snow will succeed Hadley effective July 1, 2015 and has been elected to the board. Hadley has run the company since September 2000 and will remain chairman. The company also promoted Mark Hale, who most recently served as senior vice president and director of content operations, to the post of chief operating officer. Peter Walsh, FactSet's former COO, will continue as a full-time employee until August 31, 2015, after which he will remain employed on a part-time basis 'focusing on various growth projects'.
The company reported unaudited consolidated earnings results for the second quarter and six months ended February 28, 2015. For the quarter, the company's revenues were $247,792,000 compared to $226,934,000 a year ago. Operating income was $80,648,000 compared to $75,054,000 a year ago. Income before income taxes was $81,182,000 compared to $75,398,000 a year ago. Net income was $61,598,000 or $1.46 per diluted share compared to $52,426,000 or $1.22 per diluted share a year ago. Adjusted operating income was $83,802,000 compared to $75,054,000 a year ago. Adjusted net income was $58,715,000 or $1.39 per diluted share compared to $52,426,000 or $1.22 per diluted share a year ago. Non-GAAP operating income was $82,733,000. Non-GAAP net income was $57,763,000 or $1.34 per diluted share. Capital expenditures were $7.0 million. The company generated $43 million in free cash flow, an increase of 12% over the same period last year. Free cash flow increased during the quarter due to higher levels of net income and improvement in its aged receivables and a higher accrued compensation.
For the six months, the company's revenue was $490,468,000 compared to $449,909,000 a year ago. Operating income was $160,908,000 compared to $149,795,000 a year ago. Income before income taxes was $161,872,000 compared to $150,480,000 a year ago. Net income was $117,458,000 or $2.78 per diluted share compared to $104,604,000 or $2.41 per diluted share a year ago. Net cash provided by operating activities was $120,740,000 compared to $98,727,000 a year ago. Purchases of property, equipment and leasehold improvements, net of proceeds from dispositions was $11,764,000 compared to $8,032,000 a year ago.
For the third quarter fiscal 2015, the company's revenues are expected to range between $251 million and $256 million, the annual effective tax rate is expected to range between 30% and 31%. Diluted EPS should range between $1.40 and $1.42. The midpoint of this range represents 12.8% growth over the prior year. Operating margin should range between 33% and 34%. This range reflects an overall increase in the guidance by 20 basis points, but also includes a 40-basis-point reduction from the recent acquisition of Code Red.
FactSet Research Systems Inc. Enters into Credit Agreement with Bank of America, N.A
Feb 12 15
On February 6, 2015, FactSet Research Systems Inc. entered into a credit agreement between FactSet, as the borrower, and Bank of America, N.A., as the lender. The credit agreement provides for a $35,000,000 revolving credit facility. FactSet may request borrowings under the revolving credit facility until its maturity date of February 6, 2018. The credit agreement allows FactSet to arrange for additional borrowings with the lender for an aggregate amount of up to $265,000,000, provided that any such request for additional borrowings must be in a minimum amount of $25,000,000. At FactSet's option, the borrowing may be in the form of a Eurodollar rate loan, a base rate loan, or a LIBOR daily rate loan. Borrowings under the February 6, 2015 loan bear interest on the outstanding principal amount at a rate equal to the Eurodollar rate plus 0.50%.