- Overview
- Financial Results
- Non-IFRS Basis Performance Measures
- Cash Flow
- Revenue Profile
- Business Segment Revenue
- Business Segment Adjusted EBITDA
- Business Segment Underlying Operating Profit
- Business Segment Adjusted EBITDA and Adjusted EBITDA less Capital Expenditures
- Consolidated Income Statement
- Consolidated Statement of Financial Position
- Consolidated Statement of Cash Flow
- Dividend History
- Reconciliations
- Reconciliation of Operating Profit (Loss) to Underlying Operating Profit and Adjusted EBITDA
- Reconciliation of Earnings (Loss) from Continuing Operations to Adjusted EBITDA
- Reconciliation of Underlying Operating Profit to Adjusted EBITDA by Business Segment
- Reconciliation of Earnings (Loss) Attributable to Common Shareholders to Adjusted Earnings
- Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow from Ongoing Businesses
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RECONCILIATION OF OPERATING PROFIT (LOSS) TO UNDERLYING OPERATING PROFIT (5) AND ADJUSTED EBITDA (4)
In Millions of U.S. Dollars (Unaudited)Twelve Months Ended December 31, 2012 2011 Operating Profit (Loss) $ 2,651 $ (705) Adjustments to Remove: Goodwill Impairment - 3,010 Amortization of Other Identifiable Intangible Assets 619 612 Integration Programs Expenses - 215 Fair Value Adjustments 36 (149) Other Operating Gains, Net (883) (204) Operating Profit from Other Businesses (1) (3) (18) (238) Underlying Operating Profit (1) $ 2,405 $ 2,541 Adjustments: Add: Integration Programs Expenses - (215) Remove: Depreciation and Amortization of Computer Software
(Excluding Other Businesses (1) (3))1,124 1,042 Adjusted EBITDA (1) $ 3,529 $ 3,368 Underlying Operating Profit Margin 18.6% 19.9% Adjusted EBITDA Margin 27.4% 26.4% CloseFootnotes
1Prior-period amounts have been reclassified to reflect the current presentation.
2Revenues 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. To facilitate comparison of actual results to the 2012 business outlook, ongoing businesses include the Financial & Risk segment's Investor Relations, Public Relations and Multimedia businesses (Corporate Services), which were announced for sale in December 2012.
3Other businesses are businesses that have been or are expected to be exited through sale or closure that did not qualify for discontinued operations classification, except for Corporate Services (see note (2) above).
Twelve Months Ended
December 31,(Millions of U.S. dollars) 2012 2011 Other Businesses Revenues $ 379 $1,064 Operating Profit 18 238 Depreciation and Amortization of Computer Software 5 55 EBITDA 23 293 Capital Expenditures Less Proceeds from Disposals $ 15 $ 75 4Thomson Reuters defines adjusted EBITDA as underlying operating profit excluding the related depreciation and amortization of computer software but including integration programs expenses. Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of revenues from ongoing businesses. Capital expenditures less proceeds from disposals (excluding Other businesses (see note (3) above) are also removed to arrive at adjusted EBITDA less capital expenditures.
5Underlying 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.
6Adjusted earnings and adjusted earnings per share include dividends declared on preference shares and integration programs expenses, 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 and impairment in equity method investees, discontinued operations and other items affecting comparability. Adjusted earnings per share is calculated using diluted weighted average shares and does not represent actual earnings or loss per share attributable to shareholders.
7Free 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 businesses.
CloseDisclaimer
Summary Financial Information
- This document includes summary financial information and should not be considered a substitute for our full financial statements, including footnotes, management/auditors’ reports, and related management’s discussion and analysis (MD&A). You can access our 2012 audited financial statements, MD&A and other annual disclosures in the “Investor Relations” section of our website, www.thomsonreuters.com, as well as in our filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.
Non-IFRS Financial Measures
- We also use certain non-IFRS financial measures. These measures include revenues from ongoing businesses, adjusted EBITDA and the related margin, adjusted EBITDA less capital expenditures, underlying operating profit and the related margin, free cash flow, free cash flow from ongoing businesses and adjusted EPS. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in this annual report and our 2012 annual MD&A. We use these non-IFRS financial measures as supplemental indicators of our operating performance and financial position. These measures do not have any standardized meaning 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.
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RECONCILIATION OF EARNINGS (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA (4)
In Millions of U.S. Dollars (Unaudited)Twelve Months Ended December 31, 2012 2011 Earnings (Loss) from Continuing Operations $ 2,121 $ (1,396) Adjustments to Remove: Tax Expense 157 293 Other Finance (Income) Costs (40) 15 Net Interest Expense 390 396 Amortization of Other Identifiable Intangible Assets 619 612 Amortization of Computer Software 700 659 Depreciation 429 438 EBITDA 4,376 1,017 Adjustments to Remove: Share of Post-Tax Earnings and Impairment in Equity Method Investees 23 (13) Other Operating Gains, Net (883) (204) Goodwill Impairment - 3,010 Fair Value Adjustments 36 (149) EBITDA from Other Businesses (1) (3) (23) (293) Adjusted EBITDA (1) $ 3,529 $ 3,368 CloseFootnotes
1Prior-period amounts have been reclassified to reflect the current presentation.
2Revenues 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. To facilitate comparison of actual results to the 2012 business outlook, ongoing businesses include the Financial & Risk segment's Investor Relations, Public Relations and Multimedia businesses (Corporate Services), which were announced for sale in December 2012.
3Other businesses are businesses that have been or are expected to be exited through sale or closure that did not qualify for discontinued operations classification, except for Corporate Services (see note (2) above).
Twelve Months Ended
December 31,(Millions of U.S. dollars) 2012 2011 Other Businesses Revenues $ 379 $1,064 Operating Profit 18 238 Depreciation and Amortization of Computer Software 5 55 EBITDA 23 293 Capital Expenditures Less Proceeds from Disposals $ 15 $ 75 4Thomson Reuters defines adjusted EBITDA as underlying operating profit excluding the related depreciation and amortization of computer software but including integration programs expenses. Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of revenues from ongoing businesses. Capital expenditures less proceeds from disposals (excluding Other businesses (see note (3) above) are also removed to arrive at adjusted EBITDA less capital expenditures.
5Underlying 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.
6Adjusted earnings and adjusted earnings per share include dividends declared on preference shares and integration programs expenses, 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 and impairment in equity method investees, discontinued operations and other items affecting comparability. Adjusted earnings per share is calculated using diluted weighted average shares and does not represent actual earnings or loss per share attributable to shareholders.
7Free 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 businesses.
CloseDisclaimer
Summary Financial Information
- This document includes summary financial information and should not be considered a substitute for our full financial statements, including footnotes, management/auditors’ reports, and related management’s discussion and analysis (MD&A). You can access our 2012 audited financial statements, MD&A and other annual disclosures in the “Investor Relations” section of our website, www.thomsonreuters.com, as well as in our filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.
Non-IFRS Financial Measures
- We also use certain non-IFRS financial measures. These measures include revenues from ongoing businesses, adjusted EBITDA and the related margin, adjusted EBITDA less capital expenditures, underlying operating profit and the related margin, free cash flow, free cash flow from ongoing businesses and adjusted EPS. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in this annual report and our 2012 annual MD&A. We use these non-IFRS financial measures as supplemental indicators of our operating performance and financial position. These measures do not have any standardized meaning 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.
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RECONCILIATION OF UNDERLYING OPERATING PROFIT (5) TO ADJUSTED EBITDA (4)
In Millions of U.S. Dollars (Unaudited)
BY BUSINESS SEGMENTTwelve Months Ended December 31, 2012 Twelve Months Ended December 31, 2011 (1) Underlying Operating Profit Add: Depreciation and Amortization of Computer Software* Adjusted EBITDA Underlying Operating Profit Add: Depreciation and Amortization of Computer Software* Adjusted EBITDA Financial & Risk $1,215 $ 627 $ 1,842 $1,396 $ 576 $ 1,972 Legal 964 279 1,243 941 269 1,210 Tax & Accounting 261 115 376 237 95 332 Intellectual Property & Science 235 68 303 237 59 296 Corporate & Other (includes Media) (270) 35 (235) (270) 43 (227) Integration Programs Expenses na na - na na (215) $ 2,405 $ 1,124 $ 3,529 $ 2,541 $ 1,042 $ 3,368 *Excludes Other Businesses (1) (3)
na = Not ApplicableCloseFootnotes
1Prior-period amounts have been reclassified to reflect the current presentation.
2Revenues 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. To facilitate comparison of actual results to the 2012 business outlook, ongoing businesses include the Financial & Risk segment's Investor Relations, Public Relations and Multimedia businesses (Corporate Services), which were announced for sale in December 2012.
3Other businesses are businesses that have been or are expected to be exited through sale or closure that did not qualify for discontinued operations classification, except for Corporate Services (see note (2) above).
Twelve Months Ended
December 31,(Millions of U.S. dollars) 2012 2011 Other Businesses Revenues $ 379 $1,064 Operating Profit 18 238 Depreciation and Amortization of Computer Software 5 55 EBITDA 23 293 Capital Expenditures Less Proceeds from Disposals $ 15 $ 75 4Thomson Reuters defines adjusted EBITDA as underlying operating profit excluding the related depreciation and amortization of computer software but including integration programs expenses. Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of revenues from ongoing businesses. Capital expenditures less proceeds from disposals (excluding Other businesses (see note (3) above) are also removed to arrive at adjusted EBITDA less capital expenditures.
5Underlying 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.
6Adjusted earnings and adjusted earnings per share include dividends declared on preference shares and integration programs expenses, 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 and impairment in equity method investees, discontinued operations and other items affecting comparability. Adjusted earnings per share is calculated using diluted weighted average shares and does not represent actual earnings or loss per share attributable to shareholders.
7Free 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 businesses.
CloseDisclaimer
Summary Financial Information
- This document includes summary financial information and should not be considered a substitute for our full financial statements, including footnotes, management/auditors’ reports, and related management’s discussion and analysis (MD&A). You can access our 2012 audited financial statements, MD&A and other annual disclosures in the “Investor Relations” section of our website, www.thomsonreuters.com, as well as in our filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.
Non-IFRS Financial Measures
- We also use certain non-IFRS financial measures. These measures include revenues from ongoing businesses, adjusted EBITDA and the related margin, adjusted EBITDA less capital expenditures, underlying operating profit and the related margin, free cash flow, free cash flow from ongoing businesses and adjusted EPS. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in this annual report and our 2012 annual MD&A. We use these non-IFRS financial measures as supplemental indicators of our operating performance and financial position. These measures do not have any standardized meaning 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.
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RECONCILIATION OF EARNINGS (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS
In Millions of U.S. Dollars, except as otherwise indicated and except
TO ADJUSTED EARNINGS (6)
for per share data (Unaudited)Twelve Months Ended December 31, 2012 2011 Earnings (Loss) Attributable to Common Shareholders $ 2,070 $ (1,390) Adjustments to Remove: Goodwill Impairment - 3,010 Goodwill Impairment Attributable to Non-Controlling Interests - (40) Operating Profit from Other Businesses (1) (3) (18) (238) Fair Value Adjustments 36 (149) Other Operating Gains, Net (883) (204) Other Finance (Income) Costs (40) 15 Share of Post-Tax Earnings and Impairment in Equity Method Investees 23 (13) Tax on Above Items 208 143 Discrete Tax Items (254) (105) Amortization of Other Identifiable Intangible Assets 619 612 Discontinued Operations (2) (4) Dividends Declared on Preference Shares (3) (3) Adjusted Earnings (1) $ 1,756 $ 1,634 Adjusted Earnings per Share (1) $ 2.12 $ 1.96 Diluted Weighted Average Common Shares (In Millions) 829.6 835.8 CloseFootnotes
1Prior-period amounts have been reclassified to reflect the current presentation.
2Revenues 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. To facilitate comparison of actual results to the 2012 business outlook, ongoing businesses include the Financial & Risk segment's Investor Relations, Public Relations and Multimedia businesses (Corporate Services), which were announced for sale in December 2012.
3Other businesses are businesses that have been or are expected to be exited through sale or closure that did not qualify for discontinued operations classification, except for Corporate Services (see note (2) above).
Twelve Months Ended
December 31,(Millions of U.S. dollars) 2012 2011 Other Businesses Revenues $ 379 $1,064 Operating Profit 18 238 Depreciation and Amortization of Computer Software 5 55 EBITDA 23 293 Capital Expenditures Less Proceeds from Disposals $ 15 $ 75 4Thomson Reuters defines adjusted EBITDA as underlying operating profit excluding the related depreciation and amortization of computer software but including integration programs expenses. Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of revenues from ongoing businesses. Capital expenditures less proceeds from disposals (excluding Other businesses (see note (3) above) are also removed to arrive at adjusted EBITDA less capital expenditures.
5Underlying 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.
6Adjusted earnings and adjusted earnings per share include dividends declared on preference shares and integration programs expenses, 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 and impairment in equity method investees, discontinued operations and other items affecting comparability. Adjusted earnings per share is calculated using diluted weighted average shares and does not represent actual earnings or loss per share attributable to shareholders.
7Free 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 businesses.
CloseDisclaimer
Summary Financial Information
- This document includes summary financial information and should not be considered a substitute for our full financial statements, including footnotes, management/auditors’ reports, and related management’s discussion and analysis (MD&A). You can access our 2012 audited financial statements, MD&A and other annual disclosures in the “Investor Relations” section of our website, www.thomsonreuters.com, as well as in our filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.
Non-IFRS Financial Measures
- We also use certain non-IFRS financial measures. These measures include revenues from ongoing businesses, adjusted EBITDA and the related margin, adjusted EBITDA less capital expenditures, underlying operating profit and the related margin, free cash flow, free cash flow from ongoing businesses and adjusted EPS. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in this annual report and our 2012 annual MD&A. We use these non-IFRS financial measures as supplemental indicators of our operating performance and financial position. These measures do not have any standardized meaning 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.
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RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW FROM ONGOING BUSINESSES (7)
In Millions of U.S. Dollars (Unaudited)Twelve Months Ended December 31, 2012 2011 Net Cash Provided by Operating Activities $ 2,704 $ 2,597 Capital Expenditures, Less Proceeds from Disposals (977) (1,041) Other Investing Activities 13 49 Dividends Paid on Preference Shares (3) (3) Free Cash Flow 1,737 1,602 Remove: Other Businesses (1) (3) (70) (215) Free Cash Flow from Ongoing Businesses (1) $ 1,667 $ 1,387 CloseFootnotes
1Prior-period amounts have been reclassified to reflect the current presentation.
2Revenues 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. To facilitate comparison of actual results to the 2012 business outlook, ongoing businesses include the Financial & Risk segment's Investor Relations, Public Relations and Multimedia businesses (Corporate Services), which were announced for sale in December 2012.
3Other businesses are businesses that have been or are expected to be exited through sale or closure that did not qualify for discontinued operations classification, except for Corporate Services (see note (2) above).
Twelve Months Ended
December 31,(Millions of U.S. dollars) 2012 2011 Other Businesses Revenues $ 379 $1,064 Operating Profit 18 238 Depreciation and Amortization of Computer Software 5 55 EBITDA 23 293 Capital Expenditures Less Proceeds from Disposals $ 15 $ 75 4Thomson Reuters defines adjusted EBITDA as underlying operating profit excluding the related depreciation and amortization of computer software but including integration programs expenses. Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of revenues from ongoing businesses. Capital expenditures less proceeds from disposals (excluding Other businesses (see note (3) above) are also removed to arrive at adjusted EBITDA less capital expenditures.
5Underlying 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.
6Adjusted earnings and adjusted earnings per share include dividends declared on preference shares and integration programs expenses, 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 and impairment in equity method investees, discontinued operations and other items affecting comparability. Adjusted earnings per share is calculated using diluted weighted average shares and does not represent actual earnings or loss per share attributable to shareholders.
7Free 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 businesses.
CloseDisclaimer
Summary Financial Information
- This document includes summary financial information and should not be considered a substitute for our full financial statements, including footnotes, management/auditors’ reports, and related management’s discussion and analysis (MD&A). You can access our 2012 audited financial statements, MD&A and other annual disclosures in the “Investor Relations” section of our website, www.thomsonreuters.com, as well as in our filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.
Non-IFRS Financial Measures
- We also use certain non-IFRS financial measures. These measures include revenues from ongoing businesses, adjusted EBITDA and the related margin, adjusted EBITDA less capital expenditures, underlying operating profit and the related margin, free cash flow, free cash flow from ongoing businesses and adjusted EPS. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in this annual report and our 2012 annual MD&A. We use these non-IFRS financial measures as supplemental indicators of our operating performance and financial position. These measures do not have any standardized meaning 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.
