Thomson Reuters (TSX /NYSE: TRI) reported results for the full year and fourth quarter ended December 31, 2016.

  • The company achieved its full-year 2016 Outlook.
  • Fourth-quarter diluted earnings per share (EPS) was $3.03, reflecting the gain on the sale of IP & Science.
    • Fourth-quarter adjusted EPS was $0.31, a decrease of $0.24 per share.
    • Excluding fourth-quarter charges, adjusted EPS was $0.60, an increase of 9%.
  • Full-year diluted EPS was $4.13, reflecting the gain on the sale of IP & Science.
    • Full-year adjusted EPS was $1.79, an increase of $0.01 per share.
    • Excluding fourth-quarter charges, adjusted EPS was $2.07, up 16% from the prior year
  • Full-year cash flow from operations increased 5% to $3.0 billion.
    • Full-year free cash flow increased 12% to $2.0 billion.

“2016 was a year of continued progress. I am encouraged by the momentum and the foundation we have built heading into 2017, and we are well positioned to deliver on our commitments,” said Jim Smith, president and chief executive officer of Thomson Reuters. “Today’s results reflect the clear progress we are making against the objectives we set out three years ago. 2017 is the year we work to accelerate revenue growth. In these uncertain times, customers lean more heavily on trusted partners like Thomson Reuters to help navigate a changing environment – and we are ready to help them.”

Consolidated Financial Highlights – Fourth-Quarter 2016:  Group revenues were US$ 2,860 down 1% from prior year period.  Revenues declined 1% due to the impact of foreign currency.  Operating profit declined 32% due to the fourth-quarter severance charges of $212 million. Cash flow up 4% to US$ 998 million (US$ 963).

Consolidated Financial Highlights – Full Year 2016:  Revenues decreased 1% to $11.2 billion.  Before currency, revenues increased 1%.  Adjusted EBITDA decreased 4% to $3.0 billion from the prior-year period due to the fourth-quarter charges. Excluding fourth-quarter charges, adjusted EBITDA increased 2% to $3.2 billion, and the margin increased to 28.4% from 27.4%.

Underlying operating profit decreased 6% to $1.9 billion from the prior-year period due to the fourth-quarter charges. Excluding fourth-quarter charges, underlying operating profit increased 4% to $2.1 billion, and the margin increased to 19.2% from 18.3%.  Adjusted EPS was $1.79, an increase of $0.01 per share. Excluding fourth-quarter charges, adjusted EPS was $2.07, a 16% increase or $0.29 per share. Currency had a $0.07 favorable impact.

Free cash flow increased 12% to $2.0 billion, benefiting from a $200 million tax benefit in the fourth quarter related to a $500 million cash contribution made to the company’s US defined benefit pension plan in the first quarter of 2017.

Source: Thomson Reuters Earnings Release