|By Marketwired .||
|November 7, 2012 02:11 AM EST||
ALPHEN AAN DEN RIJN, NETHERLANDS -- (Marketwire) -- 11/07/12 -- Wolters Kluwer today released its scheduled third-quarter 2012 trading update.
* Full-year 2012 guidance confirmed.
* Nine-month revenue up +3% in constant currencies, up +1% organically.
- European markets remain challenging; Legal & Regulatory Europe deteriorates in third quarter.
- North America and Asia driving growth; Tax & Accounting improves in third quarter.
- Recurring revenues (75% of total) sustain momentum.
* Nine-month EBITA margin stable year-on-year.
* Nine-month ordinary free cash flow increased in constant currencies.
* Leverage ratio net-debt-to-EBITDA improves to 2.8x (2011 year-end: 3.1x).
- Expect net-debt-to-EBITDA to approach target of 2.5x by year-end.
Nancy McKinstry, CEO and Chairman of the Executive Board, commented: "Our performance in the third quarter was largely as anticipated, with our European operations facing a difficult macro-economic environment and our North American businesses maintaining their recent momentum. Growth in our online, software, and services products globally continues to support overall positive organic growth for the group. We are actively managing the portfolio to drive faster growth, investing in product innovation and geographic expansion, and seeking further operating efficiencies. The quality of the business continues to improve and we remain confident we will deliver on our full-year guidance."
Full-Year 2012 Outlook
We reiterate our full-year 2012 guidance, despite worsened conditions in Europe and growing uncertainty around the US economy as we enter the fourth quarter.
--------------------------------------------------------------------------- Performance indicators 2012 Guidance(3)) --------------------------------------------------------------------------- Ordinary EBITA margin 21.5-22.5% Ordinary free cash flow1) > = EUR425 million Return on invested capital > = 8% Diluted ordinary EPS1) Low single-digit growth2) --------------------------------------------------------------------------- (1)) In constant currencies (EUR/USD 1.39) (2)) Includes effect of 2012 share buy-backs, stock dividend and performance shares. (3)) Guidance is for continuing operations.
Springboard cost savings are on track to reach a run rate of EUR205-EUR210 million in the full year (compared to EUR191 million in 2011).
Guidance is based on constant exchange rates. Wolters Kluwer generates more than half of its ordinary EBITA in North America. As a rule of thumb, based on our 2011 currency profile, a 1 U.S. cent move in the average EUR/USD exchange rate for the year causes an opposite 0.8 euro-cent change in diluted ordinary EPS.
Net financing costs are expected to be approximately EUR125 million in constant currencies. The benchmark effective tax rate on ordinary income before tax is expected to be approximately 27.5% in 2012 due to an increasing proportion of profits in higher tax regions, such as North America. Our divisional outlook for 2012 is as follows:
In Legal & Regulatory, we expect European markets to remain challenging in the near term. Our North American Legal & Regulatory business is positioned for growth, although transactional revenue streams have softened in recent months. The division's results will reflect two disposals of non-core publishing operations in the Netherlands which were completed in the second quarter of 2012.
In Tax & Accounting, we continue to expect positive organic growth in the second half reflecting seasonal patterns. As indicated in July, we expect the second- half margin to be broadly in line with the second half of 2011.
In Health, we expect continued strong demand for Clinical Solutions. Trends in journal advertising markets are likely to remain weak. Margins should benefit from the ongoing shift towards electronic products. The acquisition of Health Language, announced on October 17, is currently expected to close in early 2013.
In Financial & Compliance Services, we expect good growth in Financial Services and Audit, Risk & Compliance, but continued weakness in Transport Services. Margins reflect investment in global expansion and lower Transport Services transactional revenues.
Dividend Policy and Anti-dilution Policy
Wolters Kluwer has a progressive dividend policy under which the company expects to increase the dividend per share each year. Shareholders have the option to elect dividend pay-out in cash or stock. As per our announcement on July 25, Wolters Kluwer intends to offset the dilution of its stock dividend and performance share issuance annually via share repurchases. For the full year 2012, the company expects to repurchase shares for up to EUR135 million. As of November 6, a total of 7.7 million ordinary shares have been repurchased this year for a total consideration of EUR100 million (average purchase price EUR13.07).
Third-quarter organic revenue growth was 1%, overall in line with the first half. Growth in North America and Asia Pacific has been partially offset by declines in Legal & Regulatory Europe. Total recurring revenues (75% of group total) maintained momentum, as growth in electronic and services subscriptions more than offset the ongoing decline in print subscriptions. Trends in books, transactional and other cyclical products weakened modestly in the quarter.
The third quarter EBITA margin improved slightly and the nine-month margin was broadly stable year-on-year, supported by Springboard savings, the ongoing shift in business mix, and the favorable effect of currency. Third-quarter cash flow from operations increased in constant currencies and the cash conversion ratio improved in the quarter compared to the same period a year ago. Ordinary free cash flow also increased in constant currencies in the third quarter and for the first nine months.
Our net-debt-to-EBITDA ratio (12 month rolling basis) was 2.8x as of September 30, 2012, improving from 2.9x as of June 30, 2012 and 3.1x at year-end 2011. We expect to approach our target of 2.5x by the end of this year. This takes into account acquisitions completed in the second half, the largest of which was FinArch.
Legal & Regulatory saw organic revenue trends deteriorate in the third quarter, due mainly to weakening trends in loose leafs, books and cyclical products (training, advertising) across Europe. The North American Legal & Regulatory business saw good organic growth in the third quarter, with Law & Business improving and Corporate Legal Services (CLS) sustaining good momentum despite lower transaction volumes associated with M&A, business formation, and trademark activities.
Tax & Accounting improved to positive organic growth in the third quarter, as anticipated. Growth in North American tax software more than offset continued weakness in tax publishing and bank products. European revenues showed positive growth in the third quarter, despite the worsened economic conditions. Growth in European tax software compensated for declines in loose leaf, book and cyclical revenues in the region. In Asia Pacific, revenues declined organically in the quarter due mainly to timing of publishing releases in Australia. Acclipse, which offers online accounting software, including cloud-based solutions for finance and tax professionals in Australia, New Zealand, and other parts of Asia Pacific, was acquired during the quarter.
Health remains on track to deliver good growth and margin improvement this year. Clinical Solutions achieved double-digit organic revenue growth in the third quarter, with UpToDate, ProVation Medical and Clinical Drug Information all performing well. The acquisition of Health Language, currently expected to close in early 2013, brings medical terminology management databases and software that are highly complimentary to existing Clinical Solutions services. In Medical Research, Ovid's growth was positive in the quarter, while our medical journals faced continued weakness in advertising markets. Professional & Education books achieved growth in the U.S. education segment, but this was offset by weakness in medical practice textbooks and international sales.
Financial & Compliance Services organic growth moderated in the third quarter from the levels seen in the first half. The full year is still expected to see acceleration in growth compared to 2011. Financial Services, which in the first half had benefitted from implementation fees from new banking customers, achieved good organic growth, primarily from products for U.S. mortgage and lending markets. FRSGlobal achieved double-digit organic growth in the third quarter as it continues to roll out globally. The combination with FinArch, acquired in July, strengthens and extends our capabilities and geographic reach. Transport Services, based in Europe, saw continued top line weakness, particularly in transactional revenues. Audit, Risk & Compliance delivered strong organic revenue growth as it invests in expansion in Asia and Central and South America.
About Wolters Kluwer
Wolters Kluwer is a market-leading global information services company. Professionals in the areas of legal, business, tax, accounting, finance, audit, risk, compliance and healthcare rely on Wolters Kluwer's leading information- enabled tools and software solutions to manage their business efficiently, deliver results to their clients, and succeed in an ever more dynamic world.
Wolters Kluwer reported 2011 annual revenues of EUR3.4 billion. The group employs over 18,500 people worldwide and maintains operations in over 40 countries across Europe, North America, Asia Pacific and Latin America. The company is headquartered in Alphen aan den Rijn, the Netherlands. Wolters Kluwer shares are listed on NYSE Euronext Amsterdam (symbol: WKL) and are included in the AEX and Euronext 100 indices.
For more information about our products and organization, visit www.wolterskluwer.com, follow @Wolters_Kluwer on Twitter, or search for Wolters Kluwer videos on YouTube.
Calendar December 7, 2012 Investor Seminar: Financial & Compliance Services February 20, 2013 Full Year 2012 Results
Should you wish to change how you receive information from Wolters Kluwer, please click here.
Forward-looking Statements This press release contains forward-looking statements. These statements may be identified by words such as "expect", "should", "could", "shall" and similar expressions. Wolters Kluwer cautions that such forward-looking statements are qualified by certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by the forward- looking statements. Factors which could cause actual results to differ from these forward-looking statements may include, without limitation, general economic conditions; conditions in the markets in which Wolters Kluwer is engaged; behavior of customers, suppliers, and competitors; technological developments; the implementation and execution of new ICT systems or outsourcing; and legal, tax, and regulatory rules affecting Wolters Kluwer's businesses, as well as risks related to mergers, acquisitions, and divestments. In addition, financial risks such as currency movements, interest rate fluctuations, liquidity, and credit risks could influence future results. The foregoing list of factors should not be construed as exhaustive. Wolters Kluwer disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
PDF version of Press Release: http://hugin.info/130682/R/1655648/535047.pdf
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Wolters Kluwer NV via Thomson Reuters ONE
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 4, 2016 02:15 AM EST Reads: 841
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data professionals...
Dec. 3, 2016 11:00 PM EST Reads: 4,142
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 3, 2016 11:00 PM EST Reads: 952
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Dec. 3, 2016 09:30 PM EST Reads: 1,602
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Dec. 3, 2016 06:15 PM EST Reads: 1,515
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 3, 2016 05:30 PM EST Reads: 4,047
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Dec. 3, 2016 05:15 PM EST Reads: 2,139
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Dec. 3, 2016 05:15 PM EST Reads: 2,004
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Dec. 3, 2016 03:15 PM EST Reads: 3,227
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Dec. 3, 2016 02:45 PM EST Reads: 533
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Dec. 3, 2016 02:45 PM EST Reads: 719
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to impr...
Dec. 3, 2016 02:15 PM EST Reads: 6,960
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Dec. 3, 2016 02:00 PM EST Reads: 488
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Dec. 3, 2016 01:30 PM EST Reads: 2,133
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
Dec. 3, 2016 01:15 PM EST Reads: 644
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
Dec. 3, 2016 01:00 PM EST Reads: 1,879
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 3, 2016 01:00 PM EST Reads: 333
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
Dec. 3, 2016 12:45 PM EST Reads: 745
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Dec. 3, 2016 12:45 PM EST Reads: 1,960
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Dec. 3, 2016 12:15 PM EST Reads: 1,515