Exhibit 99.1
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 | | PRESS RELEASE |
INTERACTIVE DATA REPORTS THIRD-QUARTER 2010 RESULTS
BEDFORD, Mass. – November 15, 2010 – Interactive Data Corporation today reported its financial results for the third quarter ended September 30, 2010. The third-quarter 2010 results detailed below reflect the predecessor period prior to the Company’s acquisition (from July 1 through July 29) and the successor period following it (from July 30 through September 30) on a combined basis. Additional non-GAAP financial measures for the combined periods with applicable reconciliations are set forth on the pages following the financial tables of this press release.
Interactive Data’s third-quarter 2010 revenue was $197.9 million, an increase of 3.0% compared with $192.1 million for the same quarter of 2009. Third-quarter 2010 revenue includes a reduction of $2.3 million relating to the amortization of acquisition-related deferred revenue. Excluding this adjustment, non-GAAP revenue was $200.3 million in the third quarter of 2010, an increase of 4.3% over the same quarter last year. Third-quarter 2010 organic (non-GAAP) revenue, which excludes the deferred revenue adjustment, the impact of changes in foreign exchange rates, the contribution of businesses acquired in the past 12 months and related intercompany eliminations, grew 2.2% from the same quarter in 2009.
Interactive Data’s third-quarter 2010 loss from operations was $85.9 million, compared with income from operations of $58.4 million in the same period one year ago. The Company’s third-quarter 2010 loss from operations reflects the impact of the following items:
| • | | Merger costs of $100.8 million; |
| • | | Depreciation and amortization expense of $36.1 million, an increase of $20.2 million from the third quarter of 2009; |
| • | | Stock-based compensation expense of $18.1 million, an increase of $14.6 million versus the third quarter of 2009; |
| • | | Other non-recurring or unusual items of $6.6 million, comprising the deferred revenue adjustment and severance charges, an increase of $5.5 million from the third quarter of 2009; and |
| • | | Management fees of $0.5 million. |
“During the third quarter of 2010, our Pricing and Reference Data business produced its third consecutive quarter of improved organic revenue growth, and we also received good contributions from our Fixed Income Analytics and our U.S. Managed Solutions businesses,” stated Mason Slaine, who became Interactive Data’s chairman, president and chief executive on September 16, 2010. “The underlying profitability of our business remained solid although comparisons with the prior year’s third quarter are impacted by the above-mentioned items. We move forward focused on taking the necessary steps to further improve the overall efficiency of our business while continuing to invest in areas that will drive organic revenue growth over the long term. To help us achieve our goals, we have added several experienced, talented executives to our management team.”
Acquisition of Interactive Data by Silver Lake and Warburg Pincus:
| • | | On July 29, 2010, Interactive Data announced the completion of its acquisition by investment funds managed by Silver Lake and Warburg Pincus. Under the terms of the agreement, the Company’s stockholders received $33.86 per share in cash, without interest. |
Segment Reporting, Related Operating Highlights and Revenue by Geography
Institutional Services Segment:
| • | | Interactive Data Pricing and Reference Data reported third-quarter 2010 revenue of $129.0 million, a 1.8% increase over the third quarter of 2009. Excluding the $1.5 million reduction associated with the deferred revenue adjustment, the effects of foreign exchange and intercompany eliminations related to the December 2009 acquisition of certain Online Financial Solutions (OFS) assets, third-quarter 2010 organic (non-GAAP) revenue for this business increased by 3.9% from the same period last year. The organic revenue growth for this business reflects ongoing demand for fixed income evaluated pricing and reference data services primarily from existing customers in North America. This business recently added evaluated pricing for European money market instruments, complementing its existing coverage of US and Asian money market instruments. In addition, this business has introduced its Evaluated Pricing Challenge Portal, an innovative client management and compliance oversight tool designed to provide audit trails and compliance reports for a firm’s pricing challenge process. |
| • | | Interactive Data Real-Time Services generated third-quarter 2010 revenue of $40.8 million, which is 12.5% higher than the comparable quarter of 2009. Excluding the $0.6 million reduction associated with the deferred revenue adjustment, the effects of foreign exchange, the contribution of acquired assets and related intercompany eliminations, third-quarter 2010 organic (non-GAAP) revenue was essentially unchanged from the same quarter of 2009. In recent months, this business continued to add new wealth management capabilities to its PrimeTerminal offering, and introduced the Interactive Data 7ticks latency portal, which serves as a one-stop centralized resource designed for electronic traders to measure order latency, monitor network performance, and determine the overall health of their trading infrastructure. |
| • | | Interactive Data Fixed Income Analytics reported revenue for the third quarter of 2010 of $8.7 million, an increase of 6.1% from the 2009 third quarter. Excluding the $0.1 million reduction associated with the deferred revenue adjustment and the effects of foreign exchange, organic (non-GAAP) revenue in the third quarter of 2010 grew by 7.1% over the same period last year primarily on the strength of product upgrades by existing customers. In October 2010, this business announced the introduction of BondEdge® OnDemand, a fully-hosted offering that provides clients an alternative to installing and managing BondEdge as an in-house application. |
Active Trader Services Segment:
| • | | Interactive Data’s Desktop Solutions business (formerly known as eSignal) reported third-quarter 2010 revenue of $19.4 million, a decrease of 6.9% from the third quarter of 2009. Excluding the $0.2 million reduction associated with the deferred revenue adjustment and the effects of foreign exchange, third-quarter 2010 organic revenue decreased by 4.7%, from the same period last year. The decline in Desktop Solutions revenue primarily reflects a 3.7% decrease in the active trader direct subscriber base to approximately 55,000 terminals as well as lower advertising revenue. During the third quarter of 2010, the eSignal division was renamed as Interactive Data Desktop Solutions. |
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Other Third-Quarter 2010 Financial and Operating Highlights
Effects of Foreign Exchange:
| • | | Interactive Data’s third-quarter 2010 revenue was unfavorably impacted by $2.8 million due to the effects of foreign exchange resulting from a stronger US dollar in comparison with the third quarter of 2009. Total costs and expenses in the second quarter of 2010 were favorably impacted by $2.8 million as a result of the effects of foreign exchange. |
Senior Management Team:
| • | | During the past several months, Interactive Data has added a number of accomplished, experienced executives to its senior management team. As previously announced, Mason Slaine was appointed chairman, president and chief executive officer in September 2010. Later that same month, Alex Goor, a respected financial technology executive, joined Interactive Data as chief information officer responsible for global development and operations. In October 2010, Vincent Chippari was named senior vice president and chief financial officer, and Jay Nadler was hired as chief operating officer. Both individuals bring considerable experience from senior leadership roles at top financial information, software and technology companies to their respective roles. |
Results for the First Nine Months of 2010
| • | | For the first nine months ended September 30, 2010, Interactive Data reported revenue of $588.8 million, a 4.6% increase over $563.1 million in the same period last year. Organic (non-GAAP) revenue, which excludes the $2.3 million deferred revenue adjustment, the effects of foreign exchange, and revenue and intercompany eliminations related to acquisitions, organic (non-GAAP) revenue for the first nine months of 2010 increased by 1.5% over the comparable period of 2009. |
| • | | Interactive Data’s loss from operations for the first nine months of 2010 was $5.9 million, compared with income from operations of $157.3 million in the same period one year ago. The Company’s loss from operations for the first nine months of 2010 reflects the impact of the following items: |
| • | | Merger costs of $116.1 million; |
| • | | Depreciation and amortization expense of $72.4 million, an increase of $26.8 million from the same period of 2009; |
| • | | Stock-based compensation expense of $24.8 million, an increase of $12.1 million from the same period one year ago; |
| • | | Other non-recurring or unusual items of $7.1 million, comprising the deferred revenue adjustment and severance charges, an increase of $5.6 million from the same period of 2009; and |
| • | | Management fees of $0.5 million. |
Non-GAAP Information
In addition to presenting our results in accordance with generally accepted accounting principles (GAAP), we also disclose the following non-GAAP information:
| • | | The financial statements are presented on a combined basis of the predecessor and successor periods for 2010. The 2010 predecessor and successor results are presented but not discussed separately. The Company believes that the discussion on a combined basis is more meaningful as it allows for the results of operations to be analyzed to the comparable period in 2009. |
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| • | | Management refers to revenue growth rates at constant foreign currency exchange rates so that revenue results can be considered. Foreign currency fluctuations are outside of management’s control and reporting results at constant currency facilitates period-to-period comparisons of our revenue results. Generally, when the U.S. dollar either strengthens or weakens against other currencies, the growth at constant currency rates will be higher or lower than growth reported at actual exchange rates. |
| • | | Management includes information regarding organic revenue. Organic revenue excludes the contribution of businesses recently acquired (and related intercompany eliminations if applicable), the effects of foreign currency exchange rates, and adjustments related to the amortization of acquisition related deferred revenue. Management believes reporting organic revenue facilitates period-to-period comparisons and provides a better understanding of underlying business trends and our future revenue growth prospects. Management includes revenue for our Interactive Data Pricing and Reference Data, Interactive Data Real-Time Services, Interactive Data Fixed Income Analytics, and Desktop Solutions (eSignal) businesses because management believes this additional level of detail provides further insight into underlying trends and how the individual business areas are performing. In addition, since we have historically reported revenue for these businesses to the investment community as part of our reports on Form 10-K and Form 10-Q, we believe that continuing to offer such information provides consistency in our financial reporting. |
| • | | Management uses these non-GAAP financial measures, in addition to GAAP financial measures, as the basis for measuring the Company’s core operating performance and comparing such performance to that of prior periods and to the performance of our competitors. Such measures are also used by management in their financial and operating decision-making, and for forecasting and planning purposes. |
| • | | The non-GAAP financial measures of the Company’s results of operations included in this press release should not be considered in isolation from comparable measures determined in accordance with GAAP. The non-GAAP financial measures not meant to be considered superior to or a substitute for the Company’s results of operations prepared in accordance with GAAP. Reconciliations of such non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the accompanying tables. The non-GAAP measures may not be comparable to similarly titled measures reported by other companies. |
Forward-looking and Cautionary Statements
The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements include all statements that are not historical statements and include our statements discussing our goals, beliefs, strategies, objectives, plans, future financial conditions, future challenges and opportunities, including our statements that we move forward focused on taking the necessary steps to further improve the overall efficiency of our business while continuing to invest in areas that will drive organic revenue growth over the long term. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth in the company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, under the caption “Risk Factors,” which is on file with the Securities and Exchange Commission and available in the “Investors” section of our Website under the heading “SEC Filings.” Important factors that could cause actual results to differ materially from those indicated by forward-looking statements include risks and uncertainties relating to: (i) the implementation of strategies designed to improve core revenue and profit growth; (ii) the impact of cost-cutting pressures across the industries we serve; (iii) general worldwide economic conditions and related uncertainties; (iv) consolidation of financial services companies, within and across industries, or the failure of financial institutions; (v) decline in activity levels in the securities markets, weak or declining financial performance of market participants or the failure of market participants; (vi) the intensity of competition we face; (vii) a prolonged outage at one of our data centers or other major disruptions of our computer
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operations or those of our suppliers; (viii) our ability to maintain relationships with our key suppliers and providers of market data; (ix) our ability to maintain our relationships with service bureaus and custodian banks and our other customers; (x) the need to develop new products and adapt to legal, regulatory, technology or other change; (xi) our cost-savings plans may not be effective or yield the expected efficiencies or may take longer than anticipated; (xii) our ability to negotiate and enter into strategic acquisitions or alliances on favorable terms, if at all, (xiii) our ability to realize the anticipated benefits from any strategic acquisitions or alliances that we enter into; (xvi) we are subject to regulatory oversight and we provide services to financial institutions that are subject to regulatory oversight; (xiv) certain of our subsidiaries are subject to complex regulations and licensing requirements; (xv) the risks of doing business internationally; (xvi) intellectual property matters, including allegations we infringe the intellectual property rights of others; and (xvii) the ability to attract and retain a qualified management and other key personnel. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change and, therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to today.
About Interactive Data Corporation
Interactive Data Corporation is a trusted leader in financial information. Thousands of financial institutions and active traders, as well as hundreds of software and service providers, subscribe to our fixed income evaluations, reference data, real-time market data, trading infrastructure services, fixed income analytics, desktop solutions and web-based solutions. Interactive Data’s offerings support clients around the world with mission-critical functions, including portfolio valuation, regulatory compliance, risk management, electronic trading and wealth management. Interactive Data is headquartered in Bedford, Massachusetts and has over 2,400 employees in offices worldwide.
For more information, please visit www.interactivedata.com.
COMPANY CONTACTS
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Investors: Andrew Kramer 781-687-8306 andrew.kramer@interactivedata.com | | Media: Brian Willinsky 339-203-0769 brian.willinsky@interactivedata.com |
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INTERACTIVE DATA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands)
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| | Combined | | | Successor | | | Predecessor | |
| | Period from July 1 through September 30, 2010 | | | Period from July 30 through September 30, 2010 | | | Period from July 1 through July 29, 2010 | | | Three Months Ended September 30, 2009 | |
REVENUE | | $ | 197,947 | | | $ | 134,261 | | | $ | 63,686 | | | $ | 192,092 | |
COSTS AND EXPENSES: | | | | | | | | | | | | | | | | |
Cost of services | | | 74,532 | | | | 47,435 | | | | 27,097 | | | | 60,347 | |
Selling, general and administrative | | | 72,433 | | | | 38,640 | | | | 33,793 | | | | 57,387 | |
Merger costs | | | 100,818 | | | | 63,379 | | | | 37,439 | | | | — | |
Depreciation | | | 9,130 | | | | 5,926 | | | | 3,204 | | | | 8,283 | |
Amortization | | | 26,948 | | | | 24,280 | | | | 2,668 | | | | 7,644 | |
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Total costs and expenses | | | 283,861 | | | | 179,660 | | | | 104,201 | | | | 133,661 | |
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(LOSS) INCOME FROM OPERATIONS | | | (85,914 | ) | | | (45,399 | ) | | | (40,515 | ) | | | 58,431 | |
Interest (expense) income, net | | | (31,137 | ) | | | (31,269 | ) | | | 132 | | | | 323 | |
Other income, net | | | 769 | | | | 703 | | | | 66 | | | | 12 | |
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(LOSS) INCOME BEFORE INCOME TAXES | | | (116,282 | ) | | | (75,965 | ) | | | (40,317 | ) | | | 58,766 | |
Income tax (benefit) expense | | | (35,812 | ) | | | (27,703 | ) | | | (8,109 | ) | | | 15,636 | |
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NET (LOSS) INCOME | | $ | (80,470 | ) | | $ | (48,262 | ) | | $ | (32,208 | ) | | $ | 43,130 | |
Less: Net income attributable to noncontrolling interest | | | — | | | | — | | | | — | | | | — | |
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NET (LOSS) INCOME ATTRIBUTABLE TO INTERACTIVE DATA CORPORATION | | $ | (80,470 | ) | | $ | (48,262 | ) | | $ | (32,208 | ) | | $ | 43,130 | |
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| | Combined | | | Successor | | | Predecessor | |
| | Period from January 1 through September 30, 2010 | | | Period from July 30 through September 30, 2010 | | | Period from January 1 through July 29, 2010 | | | Nine Months Ended September 30, 2009 | |
REVENUE | | $ | 588,805 | | | $ | 134,261 | | | $ | 454,544 | | | $ | 563,118 | |
COSTS AND EXPENSES: | | | | | | | | | | | | | | | | |
Cost of services | | | 209,334 | | | | 47,435 | | | | 161,899 | | | | 187,176 | |
Selling, general and administrative | | | 196,850 | | | | 38,640 | | | | 158,210 | | | | 172,918 | |
Merger costs | | | 116,113 | | | | 63,379 | | | | 52,734 | | | | — | |
Depreciation | | | 28,430 | | | | 5,926 | | | | 22,504 | | | | 22,962 | |
Amortization | | | 43,998 | | | | 24,280 | | | | 19,718 | | | | 22,715 | |
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Total costs and expenses | | | 594,725 | | | | 179,660 | | | | 415,065 | | | | 405,771 | |
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(LOSS) INCOME FROM OPERATIONS | | | (5,920 | ) | | | (45,399 | ) | | | 39,479 | | | | 157,347 | |
Interest (expense) income, net | | | (30,509 | ) | | | (31,269 | ) | | | 760 | | | | 1,362 | |
Other income, net | | | 952 | | | | 703 | | | | 249 | | | | 133 | |
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(LOSS) INCOME BEFORE INCOME TAXES | | | (35,477 | ) | | | (75,965 | ) | | | 40,488 | | | | 158,842 | |
Income tax (benefit) expense | | | (9,689 | ) | | | (27,703 | ) | | | 18,014 | | | | 50,485 | |
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NET (LOSS) INCOME | | $ | (25,788 | ) | | $ | (48,262 | ) | | $ | 22,474 | | | $ | 108,357 | |
Less: Net income attributable to noncontrolling interest | | | — | | | | — | | | | — | | | | (172 | ) |
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NET (LOSS) INCOME ATTRIBUTABLE TO INTERACTIVE DATA CORPORATION | | $ | (25,788 | ) | | $ | (48,262 | ) | | $ | 22,474 | | | $ | 108,185 | |
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INTERACTIVE DATA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
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| | Successor | | | Predecessor | |
| | September 30, 2010 | | | December 31, 2009 | |
| | (Unaudited) | | | | |
ASSETS | | | | | | | | |
Assets: | | | | | | | | |
Cash and cash equivalents | | $ | 103,866 | | | $ | 209,946 | |
Marketable securities | | | — | | | | 96,077 | |
Accounts receivable, net | | | 116,937 | | | | 108,349 | |
Prepaid expenses and other current assets | | | 20,643 | | | | 21,810 | |
Income tax receivable | | | 33,481 | | | | — | |
Deferred financing costs, net | | | 11,594 | | | | — | |
Deferred income taxes | | | 7,402 | | | | 6,532 | |
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Total current assets | | | 293,923 | | | | 442,714 | |
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Property and equipment, net | | | 114,171 | | | | 123,245 | |
Goodwill | | | 1,673,251 | | | | 570,256 | |
Intangible assets, net | | | 2,036,683 | | | | 138,988 | |
Deferred financing costs, net | | | 61,230 | | | | — | |
Other assets | | | 9,299 | | | | 5,968 | |
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Total Assets | | $ | 4,188,557 | | | $ | 1,281,171 | |
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LIABILITIES AND EQUITY | | | | | | | | |
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Liabilities: | | | | | | | | |
Accounts payable, trade | | $ | 20,665 | | | $ | 20,957 | |
Accrued liabilities | | | 85,591 | | | | 78,194 | |
Borrowings, current, net of original issue discount | | | 4,908 | | | | — | |
Interest payable | | | 11,959 | | | | — | |
Income taxes payable | | | — | | | | 4,500 | |
Deferred revenue | | | 31,908 | | | | 34,586 | |
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Total current liabilities | | | 155,031 | | | | 138,237 | |
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Income taxes payable | | | 10,136 | | | | 10,986 | |
Deferred tax liabilities | | | 710,263 | | | | 33,871 | |
Other liabilities | | | 43,098 | | | | 15,971 | |
Borrowings, net of current portion and original issue discount | | | 1,965,769 | | | | — | |
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Total Liabilities | | | 2,884,297 | | | | 199,065 | |
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Equity: | | | | | | | | |
Interactive Data Corporation stockholders’ equity: | | | | | | | | |
Preferred stock | | | — | | | | — | |
Common stock | | | — | | | | 1,046 | |
Additional paid-in-capital | | | 1,327,752 | | | | 1,019,133 | |
Treasury stock, at cost | | | — | | | | (221,246 | ) |
Accumulated (loss) earnings | | | (48,262 | ) | | | 279,096 | |
Accumulated other comprehensive income | | | 24,770 | | | | 4,077 | |
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Total Interactive Data Corporation stockholders’ equity | | | 1,304,260 | | | | 1,082,106 | |
Noncontrolling interest | | | — | | | | — | |
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Total Equity | | | 1,304,260 | | | | 1,082,106 | |
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Total Liabilities and Equity | | $ | 4,188,557 | | | $ | 1,281,171 | |
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INTERACTIVE DATA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
(In thousands)
| | | | | | | | | | | | | | | | |
| | Combined | | | Successor | | | Predecessor | |
| | Period from January 1 through September 30, 2010 | | | Period from July 30 through September 30, 2010 | | | Period from January 1 through July 29, 2010 | | | Nine Months Ended September 30, 2009 | |
Cash flows (used in) provided by operating activities: | | | | | | | | | | | | | | | | |
Net (loss) income | | $ | (25,788 | ) | | $ | (48,262 | ) | | $ | 22,474 | | | $ | 108,357 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | 72,428 | | | | 30,206 | | | | 42,222 | | | | 45,677 | |
Amortization of discounts and premiums on marketable securities, net | | | 766 | | | | — | | | | 766 | | | | 1,484 | |
Amortization of deferred financing costs and accretion of note discounts | | | 3,313 | | | | 3,313 | | | | — | | | | — | |
Deferred income taxes | | | (18,586 | ) | | | (25,856 | ) | | | 7,270 | | | | (7,967 | ) |
Excess tax benefits from stock-based compensation | | | (3,625 | ) | | | — | | | | (3,625 | ) | | | (2,559 | ) |
Stock-based compensation | | | 24,768 | | | | 783 | | | | 23,985 | | | | 12,709 | |
Non-cash interest expense | | | 331 | | | | 331 | | | | — | | | | — | |
Provision for doubtful accounts and sales credits | | | 140 | | | | 37 | | | | 103 | | | | 1,067 | |
Loss on dispositions of fixed assets | | | 115 | | | | 1 | | | | 114 | | | | 463 | |
Changes in operating assets and liabilities, net | | | | | | | | | | | | | | | | |
Accounts receivable | | | (7,935 | ) | | | 29,637 | | | | (37,572 | ) | | | (12,342 | ) |
Prepaid expenses and other assets | | | 3,874 | | | | 2,560 | | | | 1,314 | | | | (3,890 | ) |
Accounts payable, interest payable/receivable and tax accounts, net | | | 4,598 | | | | 16,002 | | | | (11,404 | ) | | | 2,768 | |
Accrued expenses and other liabilities | | | 14,758 | | | | (5,524 | ) | | | 20,282 | | | | (17,124 | ) |
Pension cessation payments | | | (85,941 | ) | | | (3,200 | ) | | | (82,741 | ) | | | — | |
Deferred revenue | | | 754 | | | | (19,548 | ) | | | 20,302 | | | | 7,840 | |
| | | | | | | | | | | | | | | | |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | | | (16,030 | ) | | | (19,520 | ) | | | 3,490 | | | | 136,483 | |
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Cash flows (used in) provided by investing activities: | | | | | | | | | | | | | | | | |
Purchase of fixed assets | | | (34,636 | ) | | | (8,241 | ) | | | (26,395 | ) | | | (25,157 | ) |
Business acquisitions, net of acquired cash | | | (32,284 | ) | | | (2,361 | ) | | | (29,923 | ) | | | (3,231 | ) |
Acquisition of Interactive Data Corporation and Subsidiaries | | | (3,374,155 | ) | | | (3,374,155 | ) | | | — | | | | — | |
Purchase of marketable securities | | | (64,136 | ) | | | — | | | | (64,136 | ) | | | (200,176 | ) |
Proceeds from maturities and sales of marketable securities | | | 159,428 | | | | — | | | | 159,428 | | | | 173,510 | |
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NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES | | | (3,345,783 | ) | | | (3,384,757 | ) | | | 38,974 | | | | (55,054 | ) |
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Cash flows provided by (used in) financing activities: | | | | | | | | | | | | | | | | |
Proceeds from exercise of stock options and employee stock purchase plan | | | 28,397 | | | | — | | | | 28,397 | | | | 15,936 | |
Purchase of treasury stock | | | — | | | | — | | | | — | | | | (18,150 | ) |
Common stock cash dividends paid | | | (18,964 | ) | | | — | | | | (18,964 | ) | | | (56,413 | ) |
Excess tax benefits from stock-based compensation | | | 3,625 | | | | — | | | | 3,625 | | | | 2,559 | |
Proceeds from issuance of long-term debt, net of issuance costs | | | 1,899,670 | | | | 1,899,670 | | | | — | | | | — | |
Principal payments on long-term debt | | | (5,325 | ) | | | (5,325 | ) | | | — | | | | — | |
Investment by parent company | | | 1,353,969 | | | | 1,353,969 | | | | — | | | | — | |
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NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | | | 3,261,372 | | | | 3,248,314 | | | | 13,058 | | | | (56,068 | ) |
Effect of change in exchange rates on cash and cash equivalents | | | (5,639 | ) | | | 3,109 | | | | (8,748 | ) | | | 10,936 | |
| | | | | | | | | | | | | | | | |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | | | (106,080 | ) | | | (152,854 | ) | | | 46,774 | | | | 36,297 | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | | | 209,946 | | | | 256,720 | | | | 209,946 | | | | 154,162 | |
| | | | | | | | | | | | | | | | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | | $ | 103,866 | | | $ | 103,866 | | | $ | 256,720 | | | $ | 190,459 | |
| | | | | | | | | | | | | | | | |
8
RECONCILIATION OF NON-GAAP MEASURES
Revenue Before Effects of Deferred Revenue Adjustment, Foreign Exchange,
Acquisition-Related Revenue, and Intercompany Eliminations Resulting from Acquisitions
(In thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | 2010 Combined | | | 2009 Predecessor | | | Change | | | 2010 Combined | | | 2009 Predecessor | | | Change | |
Revenue | | $ | 197,947 | | | $ | 192,092 | | | | 3.0 | % | | $ | 588,805 | | | $ | 563,118 | | | | 4.6 | % |
Total deferred revenue adjustment | | | 2,318 | | | | — | | | | — | | | | 2,318 | | | | — | | | | — | |
Non-GAAP revenue before total deferred revenue adjustment | | | 200,265 | | | | 192,092 | | | | 4.3 | % | | | 591,123 | | | | 563,118 | | | | 5.0 | % |
Total effects of foreign exchange | | | 2,824 | | | | — | | | | — | | | | (443 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-GAAP revenue before above factors | | | 203,089 | | | | 192,092 | | | | 5.7 | % | | | 590,680 | | | | 563,118 | | | | 4.9 | % |
Total effects of acquisition-related revenue | | | (7,056 | ) | | | — | | | | — | | | | (19,773 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-GAAP revenue before above factors | | | 196,033 | | | | 192,092 | | | | 2.1 | % | | | 570,907 | | | | 563,118 | | | | 1.4 | % |
Intercompany eliminations—OFS | | | — | | | | (202 | ) | | | — | | | | — | | | | (711 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total organic (non-GAAP) revenue | | $ | 196,033 | | | $ | 191,890 | | | | 2.2 | % | | $ | 570,907 | | | $ | 562,407 | | | | 1.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interactive Data Pricing and Reference Data Revenue
Before Effects of Deferred Revenue Adjustment, Foreign Exchange
and Intercompany Eliminations Resulting from Acquisitions
(In thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | 2010 Combined | | | 2009 Predecessor | | | Change | | | 2010 Combined | | | 2009 Predecessor | | | Change | |
Interactive Data Pricing and Reference Data revenue | | $ | 129,005 | | | $ | 126,732 | | | | 1.8 | % | | $ | 380,549 | | | $ | 371,754 | | | | 2.4 | % |
Effects of deferred revenue adjustment | | | 1,451 | | | | — | | | | — | | | | 1,451 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-GAAP revenue before effects of deferred revenue adjustment | | | 130,456 | | | | 126,732 | | | | 2.9 | % | | | 382,000 | | | | 371,754 | | | | 2.8 | % |
Effects of foreign exchange | | | 1,166 | | | | — | | | | — | | | | (1,014 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non- GAAP revenue before effects of deferred revenue adjustment and foreign exchange | | | 131,622 | | | | 126,732 | | | | 3.9 | % | | | 380,986 | | | | 371,754 | | | | 2.5 | % |
Intercompany eliminations—OFS | | | — | | | | (67 | ) | | | — | | | | — | | | | (306 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total organic (non-GAAP) revenue | | $ | 131,622 | | | $ | 126,665 | | | | 3.9 | % | | $ | 380,986 | | | $ | 371,448 | | | | 2.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
9
RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)
Interactive Data Real-Time Services Revenue
Before Effects of Deferred Revenue Adjustment, Foreign Exchange,
Acquisition-Related Revenue, and Intercompany Eliminations Resulting from Acquisitions
(In thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | 2010 Combined | | | 2009 Predecessor | | | Change | | | 2010 Combined | | | 2009 Predecessor | | | Change | |
Interactive Data Real-Time Services revenue | | $ | 40,760 | | | $ | 36,233 | | | | 12.5 | % | | $ | 122,743 | | | $ | 103,993 | | | | 18.0 | % |
Effects of deferred revenue adjustment | | | 551 | | | | — | | | | — | | | | 551 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-GAAP revenue before effects of deferred revenue adjustment | | | 41,311 | | | | 36,233 | | | | 14.0 | % | | | 123,294 | | | | 103,993 | | | | 18.6 | % |
Effects of foreign exchange | | | 1,437 | | | | — | | | | — | | | | 697 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-GAAP revenue before effects of deferred revenue adjustment and foreign exchange | | | 42,748 | | | | 36,233 | | | | 18.0 | % | | | 123,991 | | | | 103,993 | | | | 19.2 | % |
Acquisition-related revenue—OFS | | | (3,026 | ) | | | — | | | | — | | | | (9,634 | ) | | | — | | | | — | |
Acquisition-related revenue—7ticks | | | (4,030 | ) | | | — | | | | — | | | | (10,139 | ) | | | — | | | | — | |
Intercompany eliminations—OFS | | | — | | | | (135 | ) | | | — | | | | — | | | | (405 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total organic (non-GAAP) revenue | | $ | 35,692 | | | $ | 36,098 | | | | -1.1 | % | | $ | 104,218 | | | $ | 103,588 | | | | 0.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interactive Data Fixed Income Analytics Revenue
Before Effects of Deferred Revenue Adjustment and Foreign Exchange
(In thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | 2010 Combined | | | 2009 Predecessor | | | Change | | | 2010 Combined | | | 2009 Predecessor | | | Change | |
Interactive Data Fixed Income Analytics revenue | | $ | 8,773 | | | $ | 8,231 | | | | 6.1 | % | | $ | 25,814 | | | $ | 24,593 | | | | 5.0 | % |
Effects of deferred revenue adjustment | | | 72 | | | | — | | | | — | | | | 72 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-GAAP revenue before effects of deferred revenue adjustment | | | 8,805 | | | | 8,231 | | | | 7.0 | % | | | 25,886 | | | | 24,593 | | | | 5.3 | % |
Effects of foreign exchange | | | 9 | | | | — | | | | — | | | | 7 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total organic (non-GAAP) revenue | | $ | 8,814 | | | $ | 8,231 | | | | 7.1 | % | | $ | 25,893 | | | $ | 24,593 | | | | 5.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Desktop Solutions (eSignal) Revenue
Before Effects of Deferred Revenue Adjustment and Foreign Exchange
(In thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | 2010 Combined | | | 2009 Predecessor | | | Change | | | 2010 Combined | | | 2009 Predecessor | | | Change | |
Interactive Data Desktop Solutions (eSignal) revenue | | $ | 19,449 | | | $ | 20,896 | | | | -6.9 | % | | $ | 59,699 | | | $ | 62,779 | | | | -4.9 | % |
Effects of deferred revenue adjustment | | | 244 | | | | — | | | | — | | | | 244 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-GAAP revenue before effects of deferred revenue adjustment | | | 19,693 | | | | 20,896 | | | | -5.8 | % | | | 59,943 | | | | 62,779 | | | | -4.5 | % |
Effects of foreign exchange | | | 212 | | | | — | | | | — | | | | (133 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total organic (non-GAAP) revenue | | $ | 19,905 | | | $ | 20,896 | | | | -4.7 | % | | $ | 59,810 | | | $ | 62,779 | | | | -4.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
10