THOMSON REUTERS PLC - AMERICAN DEPOSITARY SHARES 
By
* Positive net sales momentum continues into first quarter
* First-quarter ongoing revenues up 1%, down 2% before currency
* Professional division revenues up 2%, 1% before currency; Markets division
revenues flat, down 4% before currency
* Underlying operating profit of $555 million, down 6%
* Adjusted EPS $0.36 vs. $0.40 in prior-year period
* Integration programs and new product releases delivering results
NEW YORK, NY, May 4, 2010 - Thomson Reuters (TSX / NYSE: TRI), the world's
leading source of intelligent information for businesses and professionals,
today reported results for the first quarter ended March 31, 2010. Despite the
flow-through effect of weak 2009 net sales, the company reported ongoing
revenues of $3.1 billion, underlying operating profit of $555 million,
underlying profit margin of 17.7% and underlying free cash flow of $107 million.
"The tentative recovery in our net sales that we began to see in the second half
of 2009 has firmed and accelerated in the first quarter of 2010. We continue to
expect that we will see revenue growth return in the second half of this year,"
said Thomas H. Glocer, chief executive officer of Thomson Reuters.
"These improving market trends, coupled with our ongoing investment in new
products and scalable infrastructure, position us very well for revenue,
operating profit margin and cash flow growth in 2011 and beyond. In particular,
the launch of WestlawNext in Legal in the first quarter, the launch of our
Elektron data distribution service in Enterprise in the second quarter, and the
scheduled launches in the second half of the year of our Eikon desktop in
Markets and our new ONESOURCE global tax workstation in Tax & Accounting, equip
our sales forces with new flagship offerings to sell into a rising economy."
Consolidated Financial Highlights
Three Months Ended March 31,
(Millions of U.S. dollars, except EPS and profit
margin)
IFRS Financial Measures 2010 2009 Change
Revenues $3,140 $3,131 0%
Operating profit $321 $376 -15%
Diluted earnings per share $0.15 $0.23 -35%
(EPS)
Cash flow from operations $209 $251 -17%
Non-IFRS Financial Measures 2010 2009 Change Change Before
[1] Currency
Revenues from ongoing $3,139 $3,119 1% -2%
businesses
Underlying operating profit $555 $590 -6%
Underlying operating profit 17.7% 18.9% -120bp
margin
Adjusted earnings per share $0.36 $0.40 -10%
(EPS)
Underlying free cash flow $107 $142 -25%
[1] These and other non-IFRS financial measures are defined and reconciled to
the most directly comparable IFRS measure 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 $3.1 billion, an increase of 1% after
currency and a decrease of 2% before currency. Good growth in Healthcare &
Science, Tax & Accounting, Enterprise and Legal's subscription business was
offset by expected softness in print and a decline in Sales & Trading and
Investment & Advisory revenues due to flow-through from prior-year negative
net sales.
* Underlying operating profit declined 6%, attributable to flow-through from
lower revenues, product mix and previously-announced investments.
* Adjusted EPS was $0.36 compared to $0.40 in the prior-year period and
included integration-related costs of $0.10 per share ($0.09 in the first
quarter of 2009), which are included in adjusted earnings but excluded from
underlying operating profit.
* Underlying free cash flow was $107 million in what is traditionally the
company's weakest quarter.
* Integration and legacy savings programs continue to progress well, achieving
run-rate savings of $1.2 billion.
First-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. All revenue growth
and operating profit comparisons are based upon results from ongoing businesses
and exclude the results of disposals.
Professional Division
Three Months Ended March 31,
(Millions of U.S. dollars, except profit margin)
2010 2009 Change Change before
currency
Revenues
Legal $825 $832 -1% -3%
Tax & Accounting $262 $245 7% 6%
Healthcare & Science $208 $189 10% 9%
Professional Division Total $1,295 $1,266 2% 1%
Operating Profit
Legal $210 $241 -13%
Tax & Accounting $35 $41 -15%
Healthcare & Science $44 $31 42%
Professional Division Total $289 $313 -8%
Operating Profit Margin %
Legal 25.5% 29.0%
Tax & Accounting 13.4% 16.7%
Healthcare & Science 21.2% 16.4%
Professional Division Total 22.3% 24.7%
* First-quarter revenues rose 1%. Healthcare & Science, Tax & Accounting and
subscription Legal products combined for 5% growth, but were offset by
declines in print and non-subscription products.
* First-quarter operating profit declined 8%, as anticipated, primarily due to
the impact of revenue flow-through in Legal, revenue mix and continued
investment in the business.
Legal
* First-quarter revenues declined 3%. Subscription-based products grew 3%,
led by 15% growth in FindLaw. Non-subscription revenues declined 8% and
print products declined 17% due to tightened customer budgets and timing
benefits in the first half of 2009.
* First-quarter operating profit declined 13% and the associated margin was
25.5%. Lower revenues, particularly from high-margin print and
non-subscription products, more than offset efficiency savings.
* WestlawNext launched on February 1, 2010 and has strengthened the company's
competitive position with its clean, modern interface and powerful search
functionality. With approximately 2,300 WestlawNext customers to date, the
product is well ahead of initial expectations and customer feedback has been
extremely positive.
Tax & Accounting
* First-quarter revenues grew 6%. Workflow & Software Solutions, which
comprised two-thirds of the segment's revenues, grew 10%, led by income tax
products and growth in the global tax businesses. Business Compliance &
Knowledge Solutions declined 3% as Checkpoint's growth of 6% was offset by a
12% decline in print, which comprised 9% of the segment's revenues.
* First-quarter operating profit declined 15% and the related margin fell to
13.4%. The anticipated declines were largely attributable to the dilutive
impact of 2009 acquisitions. Tax & Accounting is a seasonal business with
nearly 50% of its operating profit traditionally generated in the fourth
quarter.
Healthcare & Science
* First-quarter revenues grew 9%. Growth was driven by continued demand for
healthcare spending analytics in Payer (up 10%), and outright sales and an
acquisition in Scientific & Scholarly Research (up 13%).
* First-quarter operating profit increased 42% versus 2009, and the
corresponding margin was up almost 500 basis points to 21.2%. These
increases were attributable to flow-through from revenue growth, continued
focus on expense management and one-time technology costs in the prior-year
period.
Markets Division
Three Months Ended March 31,
(Millions of U.S. dollars, except profit margin)
2010 2009 Change Change before
currency
Revenues
Sales & Trading $891 $913 -2% -7%
Investment & Advisory $560 $566 -1% -4%
Enterprise $315 $294 7% 3%
Media $80 $81 -1% -5%
Markets Division Total $1,846 $1,854 0% -4%
Operating Profit $323 $337 -4%
Operating Profit Margin % 17.5% 18.2%
* First-quarter revenues declined 4%, attributable to flow-through from weak
2009 net sales.
* By geography, Asia was flat, while Europe, Middle East and Africa (EMEA) and
the Americas declined 4% and 7%, respectively.
* By market, growth in Commodities & Energy, Investment Banking and Enterprise
was more than offset by declines in Fixed Income, Exchange Traded
Instruments and Investment Management.
* Sequential quarterly revenues from recurring subscriptions, transactions and
recoveries were each up 2% in the first quarter of 2010 compared to the
fourth quarter of 2009.
* First-quarter operating profit declined 4% with the related margin
declining, as expected, to 17.5%. The margin decline was attributable to
the impact of lower revenues.
Sales & Trading
* First-quarter revenues decreased 7%. The decline was due to continued
pressure on recoveries revenues and desktop reductions in the Exchange
Traded Instruments and Fixed Income segments.
* The Commodities & Energy sector benefitted from increased investment and a
resilient market, growing 4% in the quarter. Treasury was down 3% despite a
4% increase in foreign exchange transaction revenues.
Investment & Advisory
* First-quarter revenues declined 4%. The Investment Banking business grew 6%
benefiting from improving market conditions and strong sales of
ThomsonONE.com as well as certain timing effects. Corporates grew 6%,
driven primarily by recent acquisitions.
* Investment Management revenues declined 9% in the first quarter as weak net
sales in the first half of 2009 flowed through to reported results.
Revenues were stable in the first quarter of 2010 versus the fourth quarter
of 2009.
* Wealth Management revenues declined as a result of the retirement of legacy
desktop products (including ReutersPlus and ILX) as well as mergers among
clients.
Enterprise
* First-quarter revenues increased 3% against a difficult year-ago comparable
period when revenues grew 11%. Recurring revenues increased 5%, but overall
growth was dampened by a decline in outright and transactions revenues.
* Information Management Systems revenues (15% of total Enterprise revenues)
increased 14%. Enterprise Information revenues (60% of total Enterprise
revenues) rose 4% driven by continued strong demand for pricing and related
data. Risk Management revenues were flat in the quarter.
* Enterprise continues to benefit from the shift in demand from desktop to
machine-based trading.
Media
* First-quarter revenues declined 5% driven by weakness in the Agency business
which continues to be impacted by tightened customer budgets. The Consumer
business transitioned to growth in the quarter.
Corporate & Other
First-quarter corporate costs were $163 million compared to $149 million in the
prior-year period. The increase was primarily related to integration program
costs of $97 million, up $9 million, and fair-value currency-related adjustments
(non-cash) of $9 million, which were up $8 million. Core corporate costs were
$57 million, down $3 million.
Integration Programs
Thomson Reuters achieved combined run-rate savings of $1.2 billion at the end of
the first quarter of 2010 from the Reuters integration and legacy savings
programs. An incremental $125 million increase in run-rate savings was
attributable to content consolidation and organizational realignment in the
Markets division and leveraging of the Thomson Reuters global footprint by the
Professional division. Integration-related costs in the quarter totaled $97
million.
Recent Developments
In March 2010, Thomson Reuters issued $500 million principal amount of 5.85%
notes due 2040. The company used the net proceeds from this offering (together
with available cash resources) to redeem all of its outstanding $700 million
principal amount of 6.20% notes due 2012. As a result of these transactions,
the company extended the average maturity for its long-term debt to
approximately eight years.
Business Outlook (Before Currency)
Thomson Reuters today reaffirmed its business outlook for 2010 that was
previously communicated in February.
Based on the current environment in the markets that the company serves, Thomson
Reuters expects its revenues to be flat to slightly down in 2010 due to the
impact of negative net sales in 2009. The company expects net sales to
strengthen throughout 2010.
The company expects its underlying operating profit margin to be comparable to
2009 before investments in the major new products and platforms launching this
year. These investments are expected to have an impact of approximately 100
basis points.
The company's plan to continue its aggressive investment focus to drive growth
and capture efficiencies is likely to result in 2010 underlying free cash flow
being slightly down on the prior year.
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
As previously announced, Thomson Reuters increased its 2010 dividend by $0.04
per share, resulting in a quarterly dividend of $0.29 per share and an
annualized dividend of $1.16 per share. Thomson Reuters will pay a quarterly
dividend on June 15, 2010 to shareholders of record as of May 20, 2010.
Annual Renewal of Share Repurchase Facility
Thomson Reuters today announced that it has received approval from the Toronto
Stock Exchange (TSX) to renew its annual Normal Course Issuer Bid (NCIB) share
repurchase facility for an additional 12-month period. Under the NCIB, up to
15 million common shares (representing less than 2% of the total outstanding
shares) may be repurchased in open market transactions on the TSX or the New
York Stock Exchange between May 13, 2010 and May 12, 2011. On April 30, 2010,
there were 831,123,337 Thomson Reuters shares outstanding. In accordance with
TSX rules, any daily repurchases would be limited to a maximum of 258,267
shares, which represents 25% of the average daily trading volume on the TSX for
the six months ended April 30, 2010. Although Thomson Reuters has not
repurchased any shares since 2008, it may buy back shares (and subsequently
cancel them) from time to time as part of its capital management strategy.
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, legal, tax and accounting, healthcare 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 55,000 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 towww.thomsonreuters.com
<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 "Integration Programs" and "Business Outlook (Before
Currency)" sections and Mr. Glocer'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 2010. 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 material assumptions underlying the company's 2010 business outlook are
based on various external and internal assumptions. Economic and market
assumptions include, but are not limited to, positive global GDP growth 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 new product release
programs, globalization strategy, other growth initiatives and efficiency
programs, including the integration program.
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; actions of competitors; increased accessibility to free or
relatively inexpensive information sources; failure to develop new products,
services, applications and functionalities to meet customers' needs, attract new
customers or expand into new geographic markets; failure to maintain a high
renewal rate for subscription-based services; failures or disruptions of network
systems or the Internet; detrimental reliance on third parties for information
and other services; changes to legislation and regulations; failure to meet the
challenges involved in operating globally; failure to protect the reputation of
Thomson Reuters; impairment of goodwill and identifiable intangible assets;
inadequate protection of intellectual property rights; threat of legal actions
and claims; downgrading of credit ratings and adverse conditions in the credit
markets; fluctuations in foreign currency exchange and interest rates; failure
to recruit and retain high quality management and key employees; 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; failure to fully derive anticipated benefits
from future or existing acquisitions, joint ventures, investments or
dispositions; and failure to achieve benefits from integration programs to the
extent, or within the time period, currently expected. 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 ofwww.thomsonreuters.com
<http://www.thomsonreuters.com>.
CONTACTS
MEDIA INVESTORS
Calvin Mitchell Frank Golden
Senior Vice President, Corporate Affairs Senior Vice President, Investor
+1 646 223 5285 Relations
calvin.mitchell@thomsonreuters.com +1 646 223 5288
frank.golden@thomsonreuters.com
Victoria Brough
Head of External Affairs, EMEA
+44 (0)207 542 8763
victoria.brough@thomsonreuters.com
Thomson Reuters will webcast a discussion of its first-quarter 2010 results
today beginning at 8:30 a.m. U.S. Eastern Daylight Time (EDT). You can access
the webcast by visitingwww.thomsonreuters.com <http://www.thomsonreuters.com/>
and clicking on "Investor Relations" at the top of the page and then "Thomson
Reuters Reports First-Quarter 2010 Results" on the right side of the page. An
archive of the webcast will be available in the "Investor Relations" section of
the Thomson Reuters website.
Thomson Reuters Corporation
Division and Business Segment Information
(millions of U.S. dollars)
(unaudited)
Three Months Ended
March 31,
-----------------------------------
2010 2009 Change Organic
Revenues
Legal $825 $832 -1% -3%
Tax & Accounting 262 245 7% 2%
Healthcare & Science 208 189 10% 6%
--------------------
Professional Division 1,295 1,266 2% -1%
Sales & Trading[1] 891 913 -2% -7%
Investment & Advisory[1] 560 566 -1% -5%
Enterprise[1] 315 294 7% 2%
Media[1] 80 81 -1% -6%
--------------------
Markets Division 1,846 1,854 0% -5%
Eliminations (2) (1)
--------------------
Revenues from ongoing businesses[2] 3,139 3,119 1% -3%
Before currency -2%
Disposals[2] 1 12
--------------------
Revenues $3,140 $3,131 0%
Operating Profit
Legal $210 $241 -13%
Tax & Accounting 35 41 -15%
Healthcare & Science 44 31 42%
--------------------
Professional Division 289 313 -8%
Markets Division 323 337 -4%
Corporate & Other (163) (149)
Amortization of other intangible assets (129) (119)
--------------------
Operating profit from ongoing businesses[2] 320 382 -16%
Disposals[2] - (6)
Other operating gains, net 1 -
--------------------
Operating profit $321 $376 -15%
Thomson Reuters Corporation
Reconciliation of Operating Profit to Underlying Operating Profit[3]
(millions of U.S. dollars)
(unaudited)
Three Months Ended
March 31,
-----------------------------
2010 2009 Change
Operating profit $321 $376 -15%
Adjustments:
Amortization of other intangible assets 129 119
Integration program expenses 97 88
Fair value adjustments 9 1
Disposals - 6
Other operating gains, net (1) -
----------------------
Underlying operating profit $555 $590 -6%
Underlying operating profit margin 17.7% 18.9%
Thomson Reuters Corporation
Reconciliation of Earnings Attributable to Common Shareholders
to Adjusted Earnings from Continuing Operations[4]
(millions of U.S. dollars, except as otherwise indicated and except for per
share data)
(unaudited)
Three Months Ended
March 31,
---------------------
2010 2009
Earnings attributable to common shareholders $127 $190
Adjustments:
Disposals - 6
Fair value adjustments 9 1
Other operating gains, net (1) -
Other finance costs 63 23
Share of post tax earnings in equity method
investees - (1)
Tax on above items (4) (5)
Interim period effective tax rate normalization[5] (18) 7
Amortization of other intangible assets 129 119
Discontinued operations - (4)
Dividends declared on preference shares (1) (1)
------------------
Adjusted earnings from continuing operations $304 $335
Adjusted earnings per share from continuing operations $0.36 $0.40
Diluted weighted average common shares (in millions) 834.7 834.6
Thomson Reuters Corporation
Division and Business Segment Depreciation and Amortization of Computer Software
(millions of U.S. dollars)
(unaudited)
Three Months Ended
March 31,
-------------------
Depreciation and amortization of computer software 2010 2009
Legal (69) (63)
Tax & Accounting (23) (19)
Healthcare & Science (18) (16)
-------------------
Professional Division (110) (98)
Markets Division (163) (164)
Corporate & Other (6) (5)
-------------------
Depreciation - ongoing businesses (279) (267)
Disposals - (2)
-------------------
Total depreciation and amortization of computer software (279) (269)
[1] Results for 2009 have been restated to reflect the 2010 presentation.
[2] Revenues and operating profit from ongoing businesses exclude the results of
disposals. Disposals include the results of businesses sold or held for sale
that do not qualify as discontinued operations.
[3]Underlying operating profit excludes amortization of other intangible assets,
impairment charges, fair value adjustments, integration program expenses, other
operating gains and losses and the results of disposals. Underlying operating
profit margin is the underlying operating profit expressed as a percentage of
revenues from ongoing businesses.
[4] Adjusted earnings from continuing operations and adjusted earnings per share
from continuing operations include dividends declared on preference shares and
integration program expenses, but exclude the pre-tax impacts of amortization of
other intangible assets as well as the post-tax impacts of fair value
adjustments, other operating gains and losses, impairment charges, the results
of disposals (see note [2] above), other finance (income) costs, Thomson Reuters
share of post-tax earnings 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 per share attributable to shareholders.
[5]Adjustment to reflect income taxes based on estimated full-year effective tax
rate. Reported earnings 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.
Thomson Reuters Corporation
Consolidated Income Statement
(millions of U.S. dollars, except per share data)
(unaudited)
Three Months Ended
March 31,
------------------------
2010 2009
Revenues $3,140 $3,131
Operating expenses (2,412) (2,367)
Depreciation (138) (129)
Amortization of computer software (141) (140)
Amortization of other intangible assets (129) (119)
Other operating gains, net 1 -
------------------------
Operating profit 321 376
Finance costs, net:
Net interest expense (93) (96)
Other finance costs (63) (23)
------------------------
Income before tax and equity method investees 165 257
Share of post tax earnings in equity method - 1
investees
Tax expense (31) (69)
------------------------
Earnings from continuing operations 134 189
Earnings from discontinued operations, net of tax - 4
------------------------
Net earnings $134 $193
Earnings attributable to:
Common shareholders 127 190
Non-controlling interests 7 3
Basic earnings per share $0.15 $0.23
Diluted earnings per share $0.15 $0.23
Basic weighted average common shares 830,890,182 828,249,564
Diluted weighted average common shares 834,740,243 834,622,790
Thomson Reuters Corporation
Consolidated Statement of Financial Position
(millions of U.S. dollars)
(unaudited)
March 31, December 31,
2010 2009
------------- ---------------
Assets
Cash and cash equivalents $828 $1,111
Trade and other receivables 1,716 1,742
Other financial assets 76 76
Prepaid expenses and other current assets 805 734
------------- ---------------
Current assets 3,425 3,663
Computer hardware and other property, net 1,447 1,546
Computer software, net 1,502 1,495
Other identifiable intangible assets, net 8,486 8,694
Goodwill 17,879 18,130
Other financial assets 433 383
Other non-current assets 660 649
Deferred tax 13 13
------------- ---------------
Total assets $33,845 $34,573
Liabilities and equity
Liabilities
Current indebtedness $1,002 $782
Payables, accruals and provisions 2,213 2,651
Deferred revenue 1,286 1,187
Other financial liabilities 138 92
------------- ---------------
Current liabilities 4,639 4,712
Long-term indebtedness 6,690 6,821
Provisions and other non-current liabilities 1,864 1,878
Other financial liabilities 29 42
Deferred tax 1,719 1,785
------------- ---------------
Total liabilities 14,941 15,238
Equity
Capital 10,218 10,177
Retained earnings 10,443 10,561
Accumulated other comprehensive loss (1,827) (1,471)
------------- ---------------
Total shareholders' equity 18,834 19,267
Non-controlling interests 70 68
------------- ---------------
Total equity 18,904 19,335
------------- ---------------
Total liabilities and equity $33,845 $34,573
Thomson Reuters Corporation
Consolidated Statement of Cash Flow
(millions of U.S. dollars)
(unaudited)
Three Months Ended
March 31,
---------------------
2010 2009
Cash provided by (used in):
Operating activities
Net earnings $134 $193
Adjustments for:
Depreciation 138 129
Amortization of computer software 141 140
Amortization of other intangible assets 129 119
Deferred tax (38) 9
Loss from redemption of debt securities 62 -
Other 80 59
Changes in working capital and other items (431) (394)
---------------------
Operating cash flows from continuing operations 215 255
Operating cash flows from discontinued operations (6) (4)
---------------------
Net cash provided by operating activities 209 251
---------------------
Investing activities
Acquisitions, less cash acquired (63) (20)
Proceeds from other disposals 14 -
Capital expenditures, less proceeds from disposals (214) (198)
Other investing activities (1) (1)
---------------------
Investing cash flows from continuing operations (264) (219)
Investing cash flows from discontinued operations - 22
---------------------
Net cash used in investing activities (264) (197)
---------------------
Financing activities
Proceeds from debt 491 609
Repayments of debt (471) (3)
Net repayments under short-term loan facilities - (10)
Dividends paid on preference shares (1) (1)
Dividends paid on common shares (231) (228)
Other financing activities (6) (2)
---------------------
Net cash (used in) provided by financing activities (218) 365
---------------------
Translation adjustments on cash and cash equivalents (10) (9)
---------------------
(Decrease) increase in cash and cash equivalents (283) 410
Cash and cash equivalents at beginning of period 1,111 841
---------------------
Cash and cash equivalents at end of period $828 $1,251
Thomson Reuters Corporation
Reconciliation of Net Cash Provided by Operating Activities
to Underlying Free Cash Flow
(millions of U.S. dollars)
(unaudited)
Three Months Ended
March 31,
---------------------
2010 2009
Net cash provided by operating activities $209 $251
Capital expenditures, less proceeds from disposals (214) (198)
Other investing activities (1) (1)
Dividends paid on preference shares (1) (1)
---------------------
Free cash flow[1] (7) 51
Integration program costs 114 91
---------------------
Underlying free cash flow[2] $107 $142
[1] Free cash flow is net cash provided by operating activities less capital
expenditures, other investing activities, investing activities of discontinued
operations and dividends paid on our preference shares. Thomson Reuters uses
free cash flow as a performance measure because it represents cash available to
repay debt, pay dividends and fund share repurchases and new acquisitions.
[2] Underlying free cash flow is free cash flow excluding one-time cash costs
associated with integration programs.
[HUG#1411362]
First-Quarter 2010: http://hugin.info/142273/R/1411362/363758.pdfThomson Reuters PLC - American Depositary Shares : Reports First-Quarter 2010 Results
Share
© GlobeNewswire - 2010
