FactSet Research Systems (NYSE: FDS) (NASDAQ: FDS), a leading provider of integrated financial information and analytical applications to the global investment community, today announced its results for the first quarter of fiscal 2011.
For the quarter ended November 30, 2010, revenues were $173.3 million, up 12% compared to the prior year. Operating income for the first quarter increased to $59.4 million, a rise of 10% from $54.0 million in the same period of fiscal 2010. Net income advanced to $41.6 million as compared to $36.1 million a year ago. Diluted earnings per share increased to $0.88, up 19% from $0.74 in the same period of fiscal 2010. Included in this quarter's EPS were income tax benefits of $0.03 per share from adjustments to certain reserves to reflect settlements with taxing authorities regarding previously filed tax returns.
"Our first quarter results illustrate the strength of FactSet's business model. We continue to be able to provide superior workflow solutions to our clients and grow both our ASV and EPS," says Philip A. Hadley, Chairman and Chief Executive Officer. "We again delivered strong ASV growth, adding $11 million over the past three months while EPS was up 15%."
Annual Subscription Value ("ASV")
ASV advanced $10.9 million organically during the quarter. ASV was $695 million at November 30, 2010, up 10% organically over the prior year. Of this total, 82% is derived from buy-side clients and the remainder is from the sell-side firms who perform M&A advisory work and equity research. ASV at any given point in time represents the forward-looking revenues for the next 12 months from all services currently being supplied to clients.
Financial Highlights - First Quarter of Fiscal 2011
* ASV from FactSet's U.S. operations was $474 million and $221 million related to international operations.
* U.S. revenues were $118.2 million, up 12% from the year ago quarter.
* Non-U.S. revenues rose 10% to $55.1 million.
* Operating margins were 34.3%, up 20 basis points from the fourth quarter.
* Quarterly free cash flow was $14.2 million.
* Free cash flow generated over the last twelve months was $186 million, up 88% over the prior year.
* Cash and investments in marketable securities were $202 million at November 30, 2010.
* The effective tax rate for the quarter was 30.1%. The components of the effective tax rate are 32.5% for the full fiscal 2011 year partially offset by income tax benefits of 2.4%.
* Accounts receivable increased $4 million over the last 12 months while ASV is up $59 million over the same period.
Operational Highlights - First Quarter of Fiscal 2011
* Professionals using FactSet increased to 43,600, up 800 users.
* Client count was 2,123 at November 30, a net increase of 13 clients during the quarter.
* Annual client retention rate was greater than 95% of ASV and 90% of clients.
* Capital expenditures were $8.0 million, including $5.4 million for computer equipment and the remainder for office space expansion. Major expenditures included adding 12 Hewlett Packard Integrity Blade servers to the Company's data centers.
* A regular quarterly dividend of $10.7 million or $0.23 per share was paid on December 21, to common stockholders of record as of November 30, 2010.
* The Company repurchased 302,666 shares for $26.1 million during the first quarter. At November 30, $133 million remains authorized for future repurchases.
* Common shares outstanding at November 30, 2010 were 46.3 million.
* FactSet successfully relocated its New Hampshire data center to a new, state of the art facility in New Jersey.
* FactSet released its Single Name Security Exposures application to enable clients to look across all portfolios or a subset of portfolios to quantify exposure to a security, an issuer, an industry, a country, or any user-defined set of securities.
* FactSet Fundamentals was enhanced to deliver high quality standardized data within hours of public filings by U.S. companies.
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