TORONTO, May 2, 2023
/CNW/ -- Thomson Reuters (TSX/NYSE: TRI) today reported results for
the first quarter ended March 31,
2023:
- Broad revenue momentum continued in the first quarter
-
- Total company revenue up 4% / organic revenue up 6%
-
- Organic revenue up 7% for the "Big 3" segments (Legal
Professionals, Corporates and Tax & Accounting
Professionals)
- Based on Q1 performance, maintained full-year 2023 organic
revenue and adjusted EBITDA margin outlook
-
- Total revenue growth outlook updated for the company and the
"Big 3" segments to incorporate the pending sale of a majority
stake in Elite
- Completed $2 billion share
buyback program; $718 million
repurchased during first quarter
- Sold 24.5 million shares of LSEG in the first quarter, for
gross proceeds of $2.3 billion
- Launched approximately $2.2
billion return of capital transaction, expected to be
completed in June
"Solid momentum continued across our business in the first
quarter, with revenue and margins meeting or slightly exceeding our
expectations," said Steve Hasker,
President and CEO of Thomson Reuters. "While we acknowledge
elevated macroeconomic uncertainty, our underlying business is
resilient, and we are largely maintaining our 2023 outlook. We are
also excited about recent developments in AI, which we believe will
provide plentiful opportunities to better serve our customers as we
continue to invest in their future."
Mr. Hasker added, "We also remain focused on allocating capital
to drive sustainable long-term value creation. To this end, we
completed our $2 billion share
repurchase program in March, and are planning to execute a
$2.2 billion return of capital
transaction in June, funded with LSEG sale proceeds."
Consolidated Financial Highlights - Three Months Ended
March 31
Three Months Ended
March 31,
(Millions of U.S.
dollars, except for adjusted EBITDA margin and EPS)
(unaudited)
|
IFRS Financial
Measures(1)
|
2023
|
2022
|
Change
|
Change at
Constant
Currency
|
Revenues
|
$1,738
|
$1,674
|
4 %
|
|
Operating
profit
|
$508
|
$414
|
23 %
|
|
Diluted earnings per
share (EPS)
|
$1.59
|
$2.06
|
-23 %
|
|
Net cash provided by
operating activities
|
$267
|
$275
|
-2 %
|
|
Non-IFRS Financial
Measures(1)
|
|
|
|
|
Revenues
|
$1,738
|
$1,674
|
4 %
|
5 %
|
Adjusted
EBITDA
|
$677
|
$600
|
13 %
|
13 %
|
Adjusted EBITDA
margin
|
38.8 %
|
35.8 %
|
300bp
|
230bp
|
Adjusted EPS
|
$0.82
|
$0.66
|
24 %
|
24 %
|
Free cash
flow
|
$133
|
$86
|
58 %
|
|
(1) In
addition to results reported in accordance with International
Financial Reporting Standards (IFRS), the company uses certain
non-IFRS
financial measures as supplemental indicators
of its operating performance and financial position. See the
"Non-IFRS Financial
Measures" section and the tables appended to
this news release for additional information on these and other
non-IFRS financial
measures, including how they are defined and
reconciled to the most directly comparable IFRS
measures.
|
Revenues increased 4%, driven by growth in the company's
"Big 3" segments. Foreign currency and net divestitures each had a
1% negative impact on revenues.
- Organic revenues increased 6%, driven by 6% growth in recurring
revenues (76% of total revenues) as well as 11% growth in
transactions revenues. Global Print revenues were essentially
unchanged on an organic basis.
- The company's "Big 3" segments reported organic revenue growth
of 7% and collectively comprised 82% of total revenues.
Operating profit increased 23% primarily due to higher
revenues. Slightly lower costs reflected currency benefits.
- Adjusted EBITDA increased 13% due to the same factors
that impacted operating profit. The related margin increased to
38.8% from 35.8% in the prior-year period, of which foreign
currency contributed 70bp.
Diluted EPS was $1.59 per
share compared to $2.06 per share in
the prior-year period, as the prior-year period included a
significantly higher increase in the value of the company's
investment in London Stock Exchange Group (LSEG).
- Adjusted EPS, which excludes the change in value of the
company's LSEG investment, as well as other adjustments, increased
to $0.82 per share from $0.66 per share in the prior-year period,
primarily due to higher adjusted EBITDA.
Net cash provided by operating activities decreased
$8 million as the cash benefits from
higher operating profit were more than offset by higher tax
payments and unfavorable movements in working capital.
- Free cash flow increased $47
million primarily due to lower capital expenditures, which
more than offset the decrease in cash flows from operating
activities. Capital expenditures in the prior-year period included
investments in the Change Program.
Highlights by Customer Segment - Three Months Ended
March 31
(Millions of U.S. dollars, except for adjusted EBITDA
margins)
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Change
|
|
|
2023
|
2022
|
|
Total
|
Constant
Currency(1)
|
Organic(1)(2)
|
Revenues
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$714
|
$698
|
|
2 %
|
4 %
|
5 %
|
Corporates
|
|
435
|
411
|
|
6 %
|
7 %
|
8 %
|
Tax &
Accounting Professionals
|
|
282
|
253
|
|
11 %
|
13 %
|
11 %
|
"Big 3" Segments
Combined(1)
|
|
1,431
|
1,362
|
|
5 %
|
6 %
|
7 %
|
Reuters
News
|
|
175
|
176
|
|
0 %
|
1 %
|
1 %
|
Global
Print
|
|
138
|
142
|
|
-3 %
|
-1 %
|
0 %
|
Eliminations/Rounding
|
|
(6)
|
(6)
|
|
|
|
|
Revenues
|
|
$1,738
|
$1,674
|
|
4 %
|
5 %
|
6 %
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$318
|
$305
|
|
4 %
|
4 %
|
|
Corporates
|
|
154
|
157
|
|
-2 %
|
-1 %
|
|
Tax &
Accounting Professionals
|
|
149
|
122
|
|
22 %
|
22 %
|
|
"Big 3" Segments
Combined(1)
|
|
621
|
584
|
|
6 %
|
7 %
|
|
Reuters
News
|
|
29
|
37
|
|
-21 %
|
-29 %
|
|
Global
Print
|
|
50
|
53
|
|
-4 %
|
-3 %
|
|
Corporate
costs
|
|
(23)
|
(74)
|
|
n/a
|
n/a
|
|
Adjusted EBITDA
|
|
$677
|
$600
|
|
13 %
|
13 %
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
44.6 %
|
43.7 %
|
|
90bp
|
20bp
|
|
Corporates
|
|
35.1 %
|
38.1 %
|
|
-300bp
|
-300bp
|
|
Tax &
Accounting Professionals
|
|
51.4 %
|
48.3 %
|
|
310bp
|
270bp
|
|
"Big 3" Segments
Combined(1)
|
|
43.1 %
|
42.9 %
|
|
20bp
|
-20bp
|
|
Reuters
News
|
|
16.6 %
|
21.0 %
|
|
-440bp
|
-670bp
|
|
Global
Print
|
|
36.5 %
|
37.0 %
|
|
-50bp
|
-50bp
|
|
Adjusted EBITDA margin
|
|
38.8 %
|
35.8 %
|
|
300bp
|
230bp
|
|
|
|
|
|
|
|
|
|
(1) See the "Non-IFRS Financial Measures"
section and the tables appended to this news release for additional
information on these and
other non-IFRS financial measures.
To compute segment and consolidated adjusted EBITDA margin, the
Company excludes fair value
adjustments related to acquired deferred
revenues.
(2) Computed for revenue growth
only.
n/a: not applicable
|
Unless otherwise noted, all revenue growth comparisons by
customer segment in this news release are at constant
currency (or exclude the impact of foreign currency) as
Thomson Reuters believes this provides the best basis to measure
their performance.
Legal Professionals
Revenues increased 4% (5% organic) to $714 million.
- Recurring revenues grew 4% (94% of total, 6% organic) primarily
driven by Westlaw, Practical Law, HighQ and the segment's
international businesses.
- Transactions revenues decreased 5% (6% of total, decreased 1%
organic) primarily due to lower professional services revenues in
the Elite business.
Adjusted EBITDA increased 4% to $318 million.
- The margin increased to 44.6% from 43.7%, driven by foreign
currency, higher revenues and Change Program savings.
Corporates
Revenues increased 7% (8% organic) to $435 million.
- Recurring revenues grew 5% (76% of total, 7% organic) primarily
driven by Practical Law, Clear and the segment's Latin America business.
- Transactions revenues grew 14% (24% of total, 11% organic)
primarily driven by Confirmation, SurePrep and Trust.
Adjusted EBITDA decreased 2% to $154 million.
- The margin decreased to 35.1% from 38.1%, driven in part by
unfavorable timing of expenses.
Tax & Accounting Professionals
Revenues increased 13% (11% organic) to $282 million.
- Recurring revenues decreased 2% (62% of total) due to the
impact of divestitures and a small non-recurring reserve.
-
- Organic recurring revenues increased 6% driven by the segment's
Latin America business.
- Transactions revenues increased 51% (38% of total, 19% organic)
primarily due to Confirmation and SurePrep.
SurePrep contributed 2.6% to total segment organic growth in the
quarter. As a reminder, SurePrep is highly seasonal, generating
approximately half of its annual revenues in the first
quarter.
Adjusted EBITDA increased 22% to $149 million.
- The margin increased to 51.4% from 48.3%, driven by higher
revenues, Change Program savings and the addition of SurePrep.
The Tax & Accounting Professionals segment is the company's
most seasonal business with approximately 60% of full-year revenues
typically generated in the first and fourth quarters. As a result,
the margin performance of this segment has been generally higher in
the first and fourth quarters as costs are typically incurred in a
more linear fashion throughout the year.
Reuters News
Revenues of $175
million increased 1% (all organic). The expected moderation
in revenue growth was driven by a lower contractual price increase
in 2023 compared to 2022 of our news agreement with the Data &
Analytics business of LSEG, a lighter seasonal events calendar and
lower digital revenues.
Adjusted EBITDA decreased 21% to $29 million, primarily due to select investments
and the impact of lower revenue growth.
Global Print
Revenues decreased 1% (0% organic) to $138 million, which was better than expected
driven by improved retention, better third-party print revenues,
strong international performance and timing benefits, which are
expected to normalize in the remainder of 2023.
Adjusted EBITDA decreased 4% to $50 million.
- The margin decreased to 36.5% from 37.0%.
Corporate Costs
Corporate costs at the adjusted EBITDA level were
$23 million. Corporate costs were
$74 million in the prior-year period
and included $34 million of Change
Program costs.
2023 Outlook
The company is maintaining its outlook for 2023, announced on
February 9, 2023, except for total
revenue growth which is being adjusted to incorporate the pending
sale of a majority stake in Elite. This transaction is expected to
close in the second quarter. The table below sets forth the
company's outlook, which assumes constant currency rates and,
except for the pending Elite transaction, excludes the impact of
any future acquisitions or dispositions that may occur during the
year. Thomson Reuters believes that this type of guidance provides
useful insight into the anticipated performance of its
businesses.
The company expects its second-quarter 2023 organic revenue
growth rate to be at the low end of the full year 5.5% - 6.0%
range, and its adjusted EBITDA margin to be approximately 38%.
While the company's first-quarter 2023 performance provides it
with increasing confidence about its outlook, the macroeconomic
backdrop remains uncertain with many signs that point to a
weakening global economic environment, amid rising interest rates,
high inflation, and ongoing geopolitical risks. Any worsening of
the global economic or business environment could impact the
company's ability to achieve its outlook.
Reported Full-Year 2022 and Updated Full-Year 2023
Outlook
Total Thomson
Reuters
|
FY
2022
Reported
|
FY
2023
Outlook
2/9/23
|
FY
2023
Outlook
5/2/23
|
|
Total Revenue
Growth
|
4 %
|
4.5% - 5.0%
|
3.0% - 3.5%
|
|
Organic Revenue
Growth(1)
|
6 %
|
5.5% - 6.0%
|
Unchanged
|
|
Adjusted EBITDA
Margin(1)
|
35.1 %
|
~ 39%
|
Unchanged
|
|
Corporate
Costs
Core Corporate Costs
Change Program
Opex
|
$293 million
$122 million
$171 million
|
$110 - $120
million
$110 - $120
million
n/a
|
Unchanged
|
|
Free Cash
Flow(1)
|
$1.3 billion
|
~$1.8
billion
|
Unchanged
|
|
Accrued Capex as % of
Revenue(1)
Real Estate Optimization
Spend(2)
|
8.2%
n/a
|
~ 7%
$30 million
|
Unchanged
|
|
Depreciation &
Amortization of Computer Software
|
$625 million
|
$595 - $625
million
|
Unchanged
|
|
Interest Expense
(P&L)
|
$196 million
|
$190 - $210
million
|
Unchanged
|
|
Effective Tax Rate on
Adjusted Earnings(1)
|
17.6 %
|
~ 18%
|
Unchanged
|
|
"Big 3"
Segments(1)
|
FY
2022
Reported
|
FY
2023
Outlook
2/9/23
|
FY
2023
Outlook
5/2/23
|
|
Total Revenue Growth
|
5 %
|
5.5% - 6.0%
|
3.5% - 4.0%
|
|
Organic Revenue
Growth
|
7 %
|
6.5% - 7.0%
|
Unchanged
|
|
Adjusted EBITDA
Margin
|
42.4 %
|
~ 44%
|
Unchanged
|
|
|
|
(1)
|
Non-IFRS financial
measures. See the "Non-IFRS Financial Measures" section below as
well as the tables and footnotes appended to this news release for
more information.
|
(2)
|
Real estate
optimization spend in 2023 is incremental to the Accrued Capex as a
percent of revenue outlook.
|
The information in this section is forward-looking. Actual
results, which will include the impact of currency and future
acquisitions and dispositions completed during 2023, may differ
materially from the company's outlook. The information in this
section should also be read in conjunction with the section below
entitled "Special Note Regarding Forward-Looking Statements,
Material Risks and Material Assumptions."
Thomson Reuters and TPG to establish Elite as an Independent
Legal Technology Company
In April, TPG and the company announced the signing of a
definitive agreement for TPG to acquire a majority stake in Thomson
Reuters' Elite business, which provides financial and practice
management solutions to the world's leading law firms, helping
customers automate and streamline critical finance and accounting
workflows. The proposed transaction values the business at
approximately $500 million. Upon
closing of the transaction, the company expects to receive proceeds
of approximately $400 million while
retaining a 19.9% minority interest and board representation in the
business, supporting Elite strategically going forward. TPG
Capital, TPG's U.S. and European late-stage private equity
business, will become the majority shareholder of the standalone
business.
London Stock Exchange Group plc (LSEG) Ownership
Interest
Thomson Reuters indirectly owns LSEG shares through an entity
that it jointly owns with Blackstone's consortium and a group of
current LSEG and former Refinitiv senior management. During
the first quarter of 2023, the company sold 24.5 million shares
that it indirectly owned for $2.3
billion of gross proceeds. As of April 30, 2023, Thomson Reuters indirectly owned
approximately 47.4 million LSEG shares which had a market value of
approximately $5.0 billion based on
LSEG's closing share price on that day.
Return of Capital and Share Consolidation
On April 4, 2023, the company
announced it had finalized its planned uses of its approximate
$2.3 billion of gross proceeds
related to disposition of shares in LSEG. As the company had
previously disclosed in February
2023, it plans to use the gross proceeds to provide returns
to shareholders. In connection therewith, approximately
$2.2 billion will be returned to
shareholders through a return of capital transaction consisting of
a cash distribution of $4.67 per
common share and a share consolidation, or "reverse stock split",
which will reduce the number of outstanding common shares on a
basis that is proportional to the cash distribution. This
transaction is subject to shareholder approval at our annual and
special meeting of shareholders on June 14,
2023. Woodbridge, our
principal shareholder, has indicated that it plans to vote in favor
of the transaction. Provided we receive shareholder and court
approval, we expect to complete the proposed transaction by the end
of June 2023. Any funds retained by
the company from the proceeds and as a result of eligible opt-out
shareholders opting out of the return of capital transaction will
be used to pursue organic and inorganic opportunities in key growth
segments, as well as other general corporate purposes.
Dividends, Temporary Suspension of the Dividend Reinvestment
Plan (DRIP), and Share Repurchases
In February 2023, the company
announced a 10% or $0.18 per share
annualized increase in the dividend to $1.96 per common share, representing the 30th
consecutive year of dividend increases. A quarterly dividend of
$0.49 per share is payable on
June 15, 2023 to common shareholders
of record as of May 18, 2023.
Due to administrative complexities associated with the timing of
the proposed return of capital transaction, Thomson Reuters will
temporarily suspend its DRIP for any dividend payable in advance of
completion of the return of capital transaction, which we currently
expect to apply to only the quarterly dividend payable on
June 15, 2023. This means that even
if shareholders previously elected to reinvest their cash dividends
in additional Thomson Reuters shares, any such dividend will not be
reinvested but will be paid in cash. Thomson Reuters plans to
resume the DRIP in connection with future dividends after
completion of the Return of Capital Transaction. This temporary
suspension of the DRIP will not have an impact on shareholders who
currently receive their dividends in cash.
The company completed its $2
billion normal course share repurchase program in the first
quarter of 2023.
As of April 30, 2023, Thomson
Reuters had approximately 471.0 million common shares
outstanding.
Thomson Reuters
Thomson Reuters (NYSE / TSX: TRI)
("TR") informs the way forward by bringing together the trusted
content and technology that people and organizations need to make
the right decisions. The company serves professionals across legal,
tax, accounting, compliance, government, and media. Its products
combine highly specialized software and insights to empower
professionals with the data, intelligence, and solutions needed to
make informed decisions, and to help institutions in their pursuit
of justice, truth and transparency. Reuters, part of Thomson
Reuters, is the world's leading provider of trusted journalism and
news. For more information, visit tr.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, which include ratios that incorporate one or more
non-IFRS financial measures, such as adjusted EBITDA and the
related margin (other than at the customer segment level), free
cash flow, adjusted EPS and the effective tax rate on adjusted EPS,
accrued capital expenditures expressed as a percentage of revenues,
selected measures excluding the impact of foreign currency, changes
in revenues computed on an organic basis as well as all financial
measures for the "Big 3" segments. Thomson Reuters uses these
non-IFRS financial measures as supplemental indicators of its
operating performance and financial position as well as for
internal planning purposes and the company's business outlook.
Additionally, Thomson Reuters uses non-IFRS measures as the basis
for management incentive programs. 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.
The company's outlook contains various non-IFRS financial
measures. The company believes that providing reconciliations of
forward-looking non-IFRS financial measures in its outlook would be
potentially misleading and not practical due to the difficulty of
projecting items that are not reflective of ongoing operations in
any future period. The magnitude of these items may be significant.
Consequently, for outlook purposes only, the company is unable to
reconcile these non-IFRS measures to the most directly comparable
IFRS measures because it cannot predict, with reasonable certainty,
the impacts of changes in foreign exchange rates which impact (i)
the translation of its results reported at average foreign currency
rates for the year, and (ii) other finance income or expense
related to intercompany financing arrangements and foreign exchange
contracts. Additionally, the company cannot reasonably predict
(i) its share of post-tax earnings or losses in equity
method investments, which is subject to changes in the stock
price of LSEG or (ii) the occurrence or amount of other operating
gains and losses that generally arise from business transactions
that the company does not currently anticipate.
ROUNDING
Other than EPS, the company reports its results in millions
of U.S. dollars, but computes percentage changes and margins using
whole dollars to be more precise. As a result, percentages and
margins calculated from reported amounts may differ from those
presented, and growth components may not total due to
rounding.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL
RISKS AND MATERIAL ASSUMPTIONS
Certain statements in this news release, including, but not
limited to, statements in Mr. Hasker's comments and the
"2023 Outlook", "Thomson Reuters and TPG to establish Elite as an
Independent Legal Technology Company", "London Stock Exchange Group
plc (LSEG) Ownership Interest", "Return of Capital and Share
Consolidation" and "Dividends, Temporary Suspension of the Dividend
Reinvestment Plan (DRIP), and Share Repurchases" sections, are
forward-looking. The words "will", "expect", "believe", "target",
"estimate", "could", "should", "intend", "predict", "project" and
similar expressions identify forward-looking statements. While the
company believes that it has a reasonable basis for making
forward-looking statements in this news release, they are not a
guarantee of future performance or outcomes and there is no
assurance that any of the other events described in any
forward-looking statement will materialize. Forward-looking
statements are subject to a number of risks, uncertainties and
assumptions that could cause actual results or events to differ
materially from current expectations. Many of these risks,
uncertainties and assumptions are beyond the company's control and
the effects of them can be difficult to predict.
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, those discussed on pages 19-33 in the "Risk
Factors" section of the company's 2022 annual report. These and
other risk 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 (SEC). Thomson Reuters annual and quarterly
reports are also available in the "Investor Relations" section
of tr.com.
The company's business outlook is based on information
currently available to the company and is based on various external
and internal assumptions made by the company in light of its
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors that the
company believes are appropriate under the circumstances. Material
assumptions and material risks may cause actual performance to
differ from the company's expectations underlying its business
outlook. In particular, the global economy has experienced
substantial disruption due to concerns regarding economic effects
associated with the macroeconomic backdrop and ongoing geopolitical
risks. The company's business outlook assumes that uncertain
macroeconomic and geopolitical conditions will continue to disrupt
the economy and cause periods of volatility, however, these
conditions may last substantially longer than expected and any
worsening of the global economic or business environment could
impact the company's ability to achieve its outlook and affect its
results and other expectations. For a discussion of material
assumptions and material risks related to the company's 2023
outlook, please see page 65 of the company's 2022 annual
report. The company's annual report was filed with, or
furnished to, the Canadian securities regulatory authorities and
the U.S. SEC and are also available in the "Investor Relations"
section of tr.com.
The company has provided an updated outlook for the purpose
of presenting information about current expectations for the
periods presented. 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.
CONTACTS
MEDIA
Andrew Green
Senior Director,
Corporate Affairs
+1 332 219
1511
andrew.green@tr.com
|
INVESTORS
Gary Bisbee,
CFA
Head of Investor
Relations
+1 646 540
3249
gary.bisbee@tr.com
|
Thomson Reuters will webcast a discussion of its
first-quarter 2023 results and its 2023 business outlook today
beginning at 9:00 a.m. Eastern Daylight
Time (EDT). You can access the webcast by visiting
ir.tr.com. An archive of the webcast will be available following
the presentation.
Thomson Reuters
Corporation
|
Consolidated Income
Statement
|
(millions of U.S.
dollars, except per share data)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2023
|
2022
|
CONTINUING
OPERATIONS
|
|
|
Revenues
|
$1,738
|
$1,674
|
Operating
expenses
|
(1,074)
|
(1,081)
|
Depreciation
|
(30)
|
(38)
|
Amortization of
computer software
|
(118)
|
(114)
|
Amortization of other
identifiable intangible assets
|
(25)
|
(26)
|
Other operating gains
(losses), net
|
17
|
(1)
|
Operating
profit
|
508
|
414
|
Finance costs,
net:
|
|
|
Net interest
expense
|
(55)
|
(48)
|
Other finance (costs)
income
|
(90)
|
94
|
Income before tax and
equity method investments
|
363
|
460
|
Share of post-tax
earnings in equity method investments
|
570
|
798
|
Tax expense
|
(196)
|
(240)
|
Earnings from
continuing operations
|
737
|
1,018
|
Earnings (loss)
earnings from discontinued operations, net of tax
|
19
|
(11)
|
Net earnings
|
$756
|
$1,007
|
Earnings attributable
to common shareholders
|
$756
|
$1,007
|
|
|
|
Earnings per
share:
|
|
|
Basic earnings (loss)
per share:
|
|
|
From
continuing operations
|
$1.56
|
$2.09
|
From
discontinued operations
|
0.04
|
(0.02)
|
Basic earnings per
share
|
$1.60
|
$2.07
|
|
|
|
Diluted earnings (loss)
per share:
|
|
|
From
continuing operations
|
$1.55
|
$2.09
|
From
discontinued operations
|
0.04
|
(0.03)
|
Diluted earnings per
share
|
$1.59
|
$2.06
|
|
|
|
Basic weighted-average
common shares
|
473,269,056
|
486,708,758
|
Diluted
weighted-average common shares
|
474,162,799
|
487,513,216
|
Thomson Reuters
Corporation
|
Consolidated
Statement of Financial Position
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
March
31,
|
|
December
31,
|
2023
|
|
2022(1)
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$1,690
|
|
$1,069
|
Trade and other
receivables
|
941
|
|
1,069
|
Other financial
assets
|
84
|
|
204
|
Prepaid expenses and
other current assets
|
458
|
|
457
|
Current
assets excluding assets held for sale
|
3,173
|
|
2,799
|
Assets held for
sale
|
215
|
|
12
|
Current
assets
|
3,388
|
|
2,811
|
|
|
|
|
Property and equipment,
net
|
401
|
|
414
|
Computer software,
net
|
938
|
|
922
|
Other identifiable
intangible assets, net
|
3,233
|
|
3,219
|
Goodwill
|
6,264
|
|
5,882
|
Equity method
investments
|
4,572
|
|
6,199
|
Other financial
assets
|
515
|
|
527
|
Other non-current
assets
|
632
|
|
619
|
Deferred tax
|
1,092
|
|
1,118
|
Total
assets
|
$21,035
|
|
$21,711
|
|
|
|
|
Liabilities and
equity
|
|
|
|
Liabilities
|
|
|
|
Current
indebtedness
|
$1,299
|
|
$1,647
|
Payables, accruals and
provisions
|
864
|
|
1,208
|
Current tax
liabilities
|
557
|
|
324
|
Deferred
revenue
|
834
|
|
886
|
Other financial
liabilities
|
104
|
|
812
|
Current
liabilities excluding liabilities associated with assets held for
sale
|
3,658
|
|
4,877
|
Liabilities associated
with assets held for sale
|
84
|
|
14
|
Current
liabilities
|
3,742
|
|
4,891
|
|
|
|
|
Long-term
indebtedness
|
3,116
|
|
3,114
|
Provisions and other
non-current liabilities
|
708
|
|
691
|
Other financial
liabilities
|
234
|
|
233
|
Deferred tax
|
756
|
|
897
|
Total
liabilities
|
8,556
|
|
9,826
|
|
|
|
|
Equity
|
|
|
|
Capital
|
5,402
|
|
5,398
|
Retained
earnings
|
8,167
|
|
7,642
|
Accumulated other
comprehensive loss
|
(1,090)
|
|
(1,155)
|
Total
equity
|
12,479
|
|
11,885
|
Total liabilities
and equity
|
$21,035
|
|
$21,711
|
|
|
(1)
|
Prior-year period
amounts have been reclassified to reflect the current period
presentation.
|
Thomson Reuters
Corporation
|
Consolidated
Statement of Cash Flow
|
(millions of U.S.
dollars)
|
(unaudited)
|
|
|
Three Months
Ended
March 31,
|
|
2023
|
2022
|
Cash provided by
(used in):
|
|
|
Operating
activities
|
|
|
Earnings from
continuing operations
|
$737
|
$1,018
|
Adjustments
for:
|
|
|
Depreciation
|
30
|
38
|
Amortization of
computer software
|
118
|
114
|
Amortization of other
identifiable intangible assets
|
25
|
26
|
Share of post-tax
earnings in equity method investments
|
(570)
|
(798)
|
Deferred
tax
|
(127)
|
166
|
Other
|
132
|
(39)
|
Changes in working
capital and other items
|
(80)
|
(191)
|
Operating cash flows
from continuing operations
|
265
|
334
|
Operating cash flows
from discontinued operations
|
2
|
(59)
|
Net cash provided by
operating activities
|
267
|
275
|
Investing
activities
|
|
|
Acquisitions, net of
cash acquired
|
(490)
|
(8)
|
Payments from disposals
of businesses and investments
|
(4)
|
-
|
Proceeds from sales of
LSEG shares
|
2,293
|
-
|
Capital
expenditures
|
(140)
|
(171)
|
Other investing
activities
|
23
|
-
|
Taxes paid on sales of
LSEG shares
|
(14)
|
-
|
Net cash provided by
(used in) investing activities
|
1,668
|
(179)
|
Financing
activities
|
|
|
Net repayments under
short-term loan facilities
|
(361)
|
-
|
Payments of lease
principal
|
(16)
|
(17)
|
Repurchases of common
shares
|
(718)
|
-
|
Dividends paid on
preference shares
|
(1)
|
(1)
|
Dividends paid on
common shares
|
(224)
|
(209)
|
Other financing
activities
|
5
|
7
|
Net cash used in
financing activities
|
(1,315)
|
(220)
|
Translation
adjustments
|
1
|
-
|
Increase (decrease) in
cash and cash equivalents
|
621
|
(124)
|
Cash and cash
equivalents at beginning of period
|
1,069
|
778
|
Cash and cash
equivalents at end of period
|
$1,690
|
$654
|
Thomson
Reuters Corporation
|
Reconciliation of
Earnings from Continuing Operations to Adjusted
EBITDA(1)
|
(millions of
U.S. dollars, except for
margins)
|
(unaudited)
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
March
31,
|
|
December
31,
|
|
2023
|
2022
|
|
2022
|
Earnings from
continuing operations
|
$737
|
$1,018
|
|
$1,391
|
Adjustments to
remove:
|
|
|
|
|
Tax expense
|
196
|
240
|
|
259
|
Other finance costs
(income)
|
90
|
(94)
|
|
(444)
|
Net interest
expense
|
55
|
48
|
|
196
|
Amortization of other
identifiable intangible assets
|
25
|
26
|
|
99
|
Amortization of
computer software
|
118
|
114
|
|
485
|
Depreciation
|
30
|
38
|
|
140
|
EBITDA
|
$1,251
|
$1,390
|
|
$2,126
|
Adjustments to
remove:
|
|
|
|
|
Share of post-tax
(earnings) losses in equity method investments
|
(570)
|
(798)
|
|
432
|
Other operating
(gains) losses, net
|
(17)
|
1
|
|
(211)
|
Fair value
adjustments*
|
13
|
7
|
|
(18)
|
Adjusted
EBITDA(1)
|
$677
|
$600
|
|
$2,329
|
Adjusted EBITDA
margin(1)
|
38.8 %
|
35.8 %
|
|
35.1 %
|
|
|
|
|
|
|
|
|
* Fair value
adjustments primarily represent gains or losses on intercompany
balances that arise in the ordinary course of business due to
changes in foreign currency exchange rates, which are a component
of operating expenses, as well as adjustments related to acquired
deferred revenue.
|
Thomson Reuters
Corporation
|
Reconciliation of
Net Cash Provided By Operating Activities to Free Cash
Flow(1)
|
(millions of
U.S. dollars)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
March
31,
|
|
December
31,
|
|
2023
|
2022
|
|
2022
|
Net cash provided by
operating activities
|
$267
|
$275
|
|
$1,915
|
Capital
expenditures
|
(140)
|
(171)
|
|
(595)
|
Other investing
activities
|
23
|
-
|
|
88
|
Payments of lease
principal
|
(16)
|
(17)
|
|
(65)
|
Dividends paid on
preference shares
|
(1)
|
(1)
|
|
(3)
|
Free cash
flow(1)
|
$133
|
$86
|
|
$1,340
|
|
|
|
|
|
Thomson Reuters
Corporation
|
Reconciliation of
Capital Expenditures to Accrued Capital
Expenditures(1)
|
(millions of
U.S. dollars)
|
(unaudited)
|
|
|
|
Year
Ended
|
|
|
December
31,
|
|
|
|
|
2022
|
Capital
expenditures
|
|
|
|
$595
|
Remove: IFRS adjustment
to cash basis
|
|
|
|
(50)
|
Accrued capital
expenditures (1)
|
|
|
|
$545
|
Accrued capital
expenditures as a percentage of
revenues(1)
|
|
|
|
8.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Refer to page 18 for
additional information on non-IFRS financial
measures.
|
Thomson Reuters
Corporation
|
Reconciliation of
Net Earnings to Adjusted
Earnings(1)
|
Reconciliation of
Total Change in Adjusted EPS to Change in Constant
Currency(1)
|
(millions of
U.S. dollars, except for share and per
share data)
|
(unaudited)
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
March
31,
|
|
December
31,
|
|
2023
|
2022
|
|
2022
|
Net
earnings
|
$756
|
$1,007
|
|
$1,338
|
Adjustments to
remove:
|
|
|
|
|
Fair value
adjustments*
|
13
|
7
|
|
(18)
|
Amortization of other
identifiable intangible assets
|
25
|
26
|
|
99
|
Other operating
(gains) losses, net
|
(17)
|
1
|
|
(211)
|
Other finance costs
(income)
|
90
|
(94)
|
|
(444)
|
Share of post-tax
(earnings) losses in equity method investments
|
(570)
|
(798)
|
|
432
|
Tax on above
items(1)
|
112
|
206
|
|
(22)
|
Tax items impacting
comparability(1)
|
-
|
(44)
|
|
15
|
(Earnings) loss from
discontinued operations, net of tax
|
(19)
|
11
|
|
53
|
Interim period
effective tax rate normalization(1)
|
2
|
1
|
|
-
|
Dividends declared on
preference shares
|
(1)
|
(1)
|
|
(3)
|
Adjusted
earnings(1)
|
$391
|
$322
|
|
$1,239
|
Adjusted
EPS(1)
|
$0.82
|
$0.66
|
|
|
Total
change
|
24 %
|
|
|
|
Foreign
currency
|
0 %
|
|
|
|
Constant
currency
|
24 %
|
|
|
|
Diluted
weighted-average common shares (millions)
|
474.2
|
487.5
|
|
|
|
|
|
Reconciliation of
Effective Tax Rate on Adjusted
Earnings(1)
|
|
Year-ended
December 31,
|
|
|
2022
|
Adjusted
earnings
|
|
$1,239
|
Plus: Dividends
declared on preference shares
|
|
3
|
Plus: Tax expense on
adjusted earnings
|
|
266
|
Pre-Tax Adjusted
earnings
|
|
$1,508
|
|
|
|
IFRS Tax
expense
|
|
$259
|
Remove tax related
to:
|
|
|
Amortization of other identifiable intangible
assets
|
|
22
|
Share of
post-tax losses in equity method investments
|
|
124
|
Other
finance income
|
|
(80)
|
Other
operating gains, net
|
|
(42)
|
Other
items
|
|
(2)
|
Subtotal – Remove tax
benefit on pre-tax items removed from adjusted earnings
|
|
22
|
Remove: Tax items
impacting comparability
|
|
(15)
|
Total: Remove all items
above impacting comparability
|
|
7
|
|
|
|
Tax expense on
adjusted earnings
|
|
$266
|
Effective tax rate
on adjusted earnings
|
|
17.6 %
|
|
|
|
|
|
|
* Fair value
adjustments primarily represent gains or losses on
intercompany balances that arise in the ordinary course of business
due to changes in foreign currency exchange rates, which are a
component of operating expenses, as well as adjustments related to
acquired deferred revenue.
|
|
(1) Refer to page
18 for additional information on non-IFRS financial
measures.
|
Thomson Reuters
Corporation
|
Reconciliation of
Changes in Revenues to Changes in Revenues on a Constant
Currency(1) and Organic
Basis(1)
|
(millions of
U.S. dollars)
|
(unaudited)
|
|
|
|
|
Three Months
Ended March 31,
|
|
Change
|
|
|
2023
|
2022
|
|
Total
|
Foreign
Currency
|
SUBTOTAL
Constant
Currency
|
Acquisitions/
(Divestitures)
|
Organic
|
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$714
|
$698
|
|
2 %
|
-1 %
|
4 %
|
-2 %
|
5 %
|
|
Corporates
|
|
435
|
411
|
|
6 %
|
-1 %
|
7 %
|
-1 %
|
8 %
|
|
Tax &
Accounting Professionals
|
|
282
|
253
|
|
11 %
|
-1 %
|
13 %
|
2 %
|
11 %
|
|
"Big 3" Segments
Combined(1)
|
|
1,431
|
1,362
|
|
5 %
|
-1 %
|
6 %
|
-1 %
|
7 %
|
|
Reuters
News
|
|
175
|
176
|
|
0 %
|
-1 %
|
1 %
|
0 %
|
1 %
|
|
Global
Print
|
|
138
|
142
|
|
-3 %
|
-2 %
|
-1 %
|
-2 %
|
0 %
|
|
Eliminations/Rounding
|
|
(6)
|
(6)
|
|
|
|
|
|
|
|
Revenues
|
|
$1,738
|
$1,674
|
|
4 %
|
-1 %
|
5 %
|
-1 %
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$672
|
$653
|
|
3 %
|
-1 %
|
4 %
|
-2 %
|
6 %
|
|
Corporates
|
|
329
|
316
|
|
4 %
|
0 %
|
5 %
|
-3 %
|
7 %
|
|
Tax &
Accounting Professionals
|
|
176
|
182
|
|
-3 %
|
-1 %
|
-2 %
|
-8 %
|
6 %
|
|
"Big 3" Segments
Combined(1)
|
|
1,177
|
1,151
|
|
2 %
|
-1 %
|
3 %
|
-3 %
|
6 %
|
|
Reuters
News
|
|
155
|
155
|
|
0 %
|
-2 %
|
2 %
|
0 %
|
1 %
|
|
Eliminations/Rounding
|
|
(6)
|
(6)
|
|
|
|
|
|
|
|
Total Recurring
Revenues
|
|
$1,326
|
$1,300
|
|
2 %
|
-1 %
|
3 %
|
-2 %
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$42
|
$45
|
|
-6 %
|
-1 %
|
-5 %
|
-4 %
|
-1 %
|
|
Corporates
|
|
106
|
95
|
|
11 %
|
-4 %
|
14 %
|
3 %
|
11 %
|
|
Tax &
Accounting Professionals
|
|
106
|
71
|
|
49 %
|
-2 %
|
51 %
|
31 %
|
19 %
|
|
"Big 3" Segments
Combined(1)
|
|
254
|
211
|
|
20 %
|
-2 %
|
22 %
|
10 %
|
12 %
|
|
Reuters
News
|
|
20
|
21
|
|
-1 %
|
2 %
|
-3 %
|
0 %
|
-3 %
|
|
Total Transactions
Revenues
|
|
$274
|
$232
|
|
18 %
|
-2 %
|
20 %
|
9 %
|
11 %
|
|
|
|
|
Year
Ended
|
|
|
|
|
|
|
|
|
December
31,
|
|
Change
|
|
|
2022
|
2021
|
|
Total
|
Foreign
Currency
|
SUBTOTAL
Constant
Currency
|
Acquisitions/
(Divestitures)
|
Organic
|
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$2,803
|
$2,712
|
|
3 %
|
-2 %
|
5 %
|
-1 %
|
6 %
|
|
Corporates
|
|
1,536
|
1,440
|
|
7 %
|
-1 %
|
8 %
|
0 %
|
8 %
|
|
Tax &
Accounting Professionals
|
|
986
|
915
|
|
8 %
|
-1 %
|
8 %
|
-1 %
|
9 %
|
|
"Big 3" Segments
Combined(1)
|
|
5,325
|
5,067
|
|
5 %
|
-1 %
|
6 %
|
-1 %
|
7 %
|
|
Reuters
News
|
|
733
|
694
|
|
6 %
|
-3 %
|
9 %
|
0 %
|
9 %
|
|
Global
Print
|
|
592
|
609
|
|
-3 %
|
-2 %
|
-1 %
|
0 %
|
-1 %
|
|
Eliminations/Rounding
|
|
(23)
|
(22)
|
|
|
|
|
|
|
|
Revenues
|
|
$6,627
|
$6,348
|
|
4 %
|
-2 %
|
6 %
|
0 %
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth percentages
are computed using whole dollars. As a result, percentages
calculated from reported amounts may differ from those presented,
and growth components may not total due to rounding.
|
|
(1) Refer to page
18 for additional information on non-IFRS financial
measures.
|
Thomson Reuters
Corporation
|
Reconciliation of
Changes in Adjusted EBITDA(1) and Related Margin
(1) to Changes on a Constant
Currency Basis(1)
|
(millions of
U.S. dollars, except for
margins)
|
(unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
Change
|
|
|
|
2023
|
2022
|
|
Total
|
Foreign
Currency
|
Constant
Currency
|
|
Adjusted
EBITDA(1)
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$318
|
$305
|
|
4 %
|
0 %
|
4 %
|
|
Corporates
|
|
154
|
157
|
|
-2 %
|
-1 %
|
-1 %
|
|
Tax &
Accounting Professionals
|
|
149
|
122
|
|
22 %
|
0 %
|
22 %
|
|
"Big 3" Segments
Combined(1)
|
|
621
|
584
|
|
6 %
|
0 %
|
7 %
|
|
Reuters
News
|
|
29
|
37
|
|
-21 %
|
8 %
|
-29 %
|
|
Global
Print
|
|
50
|
53
|
|
-4 %
|
-2 %
|
-3 %
|
|
Corporate
costs
|
|
(23)
|
(74)
|
|
n/a
|
n/a
|
n/a
|
|
Adjusted
EBITDA
|
|
$677
|
$600
|
|
13 %
|
0 %
|
13 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
44.6 %
|
43.7 %
|
|
90bp
|
70bp
|
20bp
|
|
Corporates
|
|
35.1 %
|
38.1 %
|
|
-300bp
|
0bp
|
-300bp
|
|
Tax &
Accounting Professionals
|
|
51.4 %
|
48.3 %
|
|
310bp
|
40bp
|
270bp
|
|
"Big 3" Segments
Combined(1)
|
|
43.1 %
|
42.9 %
|
|
20bp
|
40bp
|
-20bp
|
|
Reuters
News
|
|
16.6 %
|
21.0 %
|
|
-440bp
|
230bp
|
-670bp
|
|
Global
Print
|
|
36.5 %
|
37.0 %
|
|
-50bp
|
0bp
|
-50bp
|
|
Adjusted EBITDA
margin
|
|
38.8 %
|
35.8 %
|
|
300bp
|
70bp
|
230bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of adjusted EBITDA margin
To compute
segment and consolidated adjusted EBITDA margin, we exclude fair
value adjustments related to acquired deferred revenue from our
IFRS revenues. The chart below reconciles IFRS revenues to revenues
used in the calculation of adjusted EBITDA margin, which excludes
fair value adjustments related to acquired deferred revenue.
Three months ended
March 31, 2023
|
|
IFRS
revenues
|
Remove fair
value
adjustments to
acquired deferred
revenue
|
Revenues
excluding
fair value
adjustments to
acquired deferred
revenue
|
|
Adjusted
EBITDA
|
Adjusted EBITDA
Margin
|
Legal
Professionals
|
$714
|
-
|
$714
|
|
$318
|
44.6 %
|
Corporates
|
435
|
$2
|
437
|
|
154
|
35.1 %
|
Tax & Accounting
Professionals
|
282
|
7
|
289
|
|
149
|
51.4 %
|
"Big 3" Segments
Combined
|
1,431
|
9
|
1,440
|
|
621
|
43.1 %
|
Reuters News
|
175
|
-
|
175
|
|
29
|
16.6 %
|
Global Print
|
138
|
-
|
138
|
|
50
|
36.5 %
|
Eliminations/
Rounding
|
(6)
|
-
|
(6)
|
|
-
|
n/a
|
Corporate
costs
|
-
|
-
|
-
|
|
(23)
|
n/a
|
Consolidated
totals
|
$1,738
|
$9
|
$1,747
|
|
$677
|
38.8 %
|
|
Growth percentages
and margins are computed using whole dollars. Further, margins are
computed using revenues excluding fair value adjustments related to
acquired deferred revenue. As a result, percentages and margins
calculated from reported amounts may differ from those presented,
and growth components may not total due to rounding.
|
|
n/a: not
applicable
|
(1) Refer to page
18 for additional information on non-IFRS financial
measures.
|
Thomson Reuters
Corporation
|
Segment and
Consolidated Adjusted EBITDA(1) and the Related
Margin(1)
|
(millions of
U.S. dollars, except for
margins)
|
(unaudited)
|
|
|
|
Year
Ended
|
|
|
December
31,
|
|
|
2022
|
Adjusted
EBITDA(1)
|
|
|
Legal
Professionals
|
|
$1,227
|
Corporates
|
|
578
|
Tax &
Accounting Professionals
|
|
451
|
"Big 3" Segments
Combined(1)
|
|
2,256
|
Reuters
News
|
|
154
|
Global
Print
|
|
212
|
Corporate
costs
|
|
(293)
|
Adjusted
EBITDA
|
|
$2,329
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
Legal
Professionals
|
|
43.8 %
|
Corporates
|
|
37.6 %
|
Tax &
Accounting Professionals
|
|
45.8 %
|
"Big 3" Segments
Combined(1)
|
|
42.4 %
|
Reuters
News
|
|
21.0 %
|
Global
Print
|
|
35.7 %
|
Adjusted EBITDA
margin
|
|
35.1 %
|
|
|
|
|
(1) Refer to page
18 for additional information on non-IFRS financial
measures.
|
Non-IFRS Financial
Measures
|
Definition
|
Why Useful to the
Company and Investors
|
Adjusted EBITDA and the
related margin
|
Represents earnings or
losses from continuing operations before tax expense or benefit,
net interest expense, other finance costs or income, depreciation,
amortization of software and other identifiable intangible assets,
Thomson Reuters share of post-tax earnings or losses in equity
method investments, other operating gains and losses, certain asset
impairment charges and fair value adjustments, including those
related to acquired deferred revenue.
The related margin is adjusted EBITDA expressed as a percentage of
revenues. For purposes of this calculation, revenues are before
fair value adjustments to acquired deferred revenue.
|
Provides a consistent
basis to evaluate operating profitability and performance trends by
excluding items that the company does not consider to be
controllable activities for this purpose.
Also, represents a measure commonly reported and widely used by
investors as a valuation metric, as well as to assess the company's
ability to incur and service debt.
|
Adjusted earnings and
adjusted EPS
|
Net earnings or loss
including dividends declared on preference shares but excluding the
post-tax impacts of fair value adjustments, including those related
to acquired deferred revenue, amortization of other identifiable
intangible assets, other operating gains and losses, certain asset
impairment charges, other finance costs or income, Thomson Reuters
share of post-tax earnings or losses in equity method investments,
discontinued operations and other items affecting
comparability.
The post-tax amount of each item is excluded from adjusted earnings
based on the specific tax rules and tax rates associated with the
nature and jurisdiction of each item.
Adjusted EPS is calculated from adjusted earnings using diluted
weighted-average shares and does not represent actual earnings or
loss per share attributable to shareholders.
|
Provides a more
comparable basis to analyze earnings.
These measures are commonly used by shareholders to measure
performance.
|
Effective tax rate on
adjusted earnings
|
Adjusted tax expense
divided by pre-tax adjusted earnings. Adjusted tax expense is
computed as income tax (benefit) expense plus or minus the income
tax impacts of all items impacting adjusted earnings (as described
above), and other tax items impacting comparability.
In interim periods, we also make an adjustment to reflect income
taxes based on the estimated full-year effective tax rate. Earnings
or losses for interim periods under IFRS reflect income taxes based
on the estimated effective tax rates of each of the jurisdictions
in which Thomson Reuters operates. The non-IFRS adjustment
reallocates estimated full-year income taxes between interim
periods but has no effect on full-year income taxes.
|
Provides a basis to
analyze the effective tax rate associated with adjusted
earnings.
Because the geographical mix of pre-tax profits and losses in
interim periods may be different from that for the full year, our
effective tax rate computed in accordance with IFRS may be more
volatile by quarter. Therefore, we believe that using the expected
full-year effective tax rate provides more comparability among
interim periods.
|
Free cash
flow
|
Net cash provided by
operating activities, proceeds from disposals of property and
equipment, and other investing activities, less capital
expenditures, payments of lease principal and dividends paid on the
company's preference shares.
|
Helps assess the
company's ability, over the long term, to create value for its
shareholders as it represents cash available to repay debt, pay
common dividends and fund share repurchases and
acquisitions.
|
Changes before the
impact of foreign currency or at "constant currency"
|
The changes in
revenues, adjusted EBITDA and the related margin, and adjusted EPS
before currency (at constant currency or excluding the effects of
currency) are determined by converting the current and equivalent
prior period's local currency results using the same foreign
currency exchange rate.
|
Provides better
comparability of business trends from period to period.
|
Changes in revenues
computed on an "organic" basis
|
Represent changes in
revenues of the company's existing businesses at constant currency.
The metric excludes the distortive impacts of acquisitions and
dispositions from not owning the business in both comparable
periods.
|
Provides further
insight into the performance of the company's existing businesses
by excluding distortive impacts and serves as a better measure of
the company's ability to grow its business over the long
term.
|
Accrued capital
expenditures as a percentage of revenues
|
Accrued capital
expenditures divided by revenues, where accrued capital
expenditures include amounts that remain unpaid at the end of the
reporting period. For purposes of this calculation, revenues are
before fair value adjustments to acquired deferred
revenue.
In 2023, this measure excludes $30 million of capital expenditures
related to real estate.
|
Reflects the basis on
which the company manages capital expenditures for internal
budgeting purposes.
|
"Big 3"
segments
|
The company's combined
Legal Professionals, Corporates and Tax & Accounting
Professionals segments. All measures reported for the "Big 3"
segments are non-IFRS financial measures.
|
The "Big 3" segments
comprised approximately 80% of revenues and represent the core of
the company's business information service product
offerings.
|
|
Please refer to
reconciliations for the most directly comparable IFRS financial
measures.
|
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SOURCE Thomson Reuters