-
Reported 3Q10 EPS of $0.58
-
3Q10 revenue of $513.3 million, up 14% from prior-year period
-
Raising FY 2010 EPS guidance to range of $1.90 to $1.96
NEW YORK--(BUSINESS WIRE)--
Moody’s Corporation (NYSE: MCO) today announced results for the third
quarter of 2010.
Summary of Results for Third Quarter 2010
Moody’s Corporation reported revenue of $513.3 million for the three
months ended September 30, 2010, an increase of 14% from $451.8 million
for the third quarter of 2009. Operating income for the quarter was
$188.9 million, a 10% increase from $172.5 million for the same period
last year. Diluted earnings per share of $0.58 for the third quarter of
2010 included a one-time tax benefit of $0.07 associated with foreign
earnings. Excluding minor restructuring items from both periods, diluted
earnings per share of $0.58 for the quarter grew 35% from $0.43 in the
prior-year period.
“Moody’s results in the third quarter reflected strong performance at
Moody’s Investors Service associated with robust capital market issuance
and steady growth from Moody’s Analytics,” said Raymond McDaniel,
Chairman and Chief Executive Officer of Moody’s Corporation. “Based on
year-to-date performance and our expectations for the remainder of the
year, we are raising our full-year 2010 EPS guidance to a range of $1.90
to $1.96.”
Third Quarter Revenue
For Moody’s Corporation overall, global revenue of $513.3 million
increased 14% from the third quarter of 2009. Excluding the unfavorable
impact of foreign currency translation, revenue grew 16 percent. U.S.
revenue of $278.3 million for the quarter rose 21%, while non-U.S.
revenue of $235.0 million increased 6% from the prior-year period.
Non-U.S. revenue represented 46% of total revenue for the quarter, down
from 49% in the year-ago period. Excluding the unfavorable impact of
foreign currency translation, non-U.S. revenue in the third quarter rose
10 percent.
Global revenue for Moody’s Investors Service (“MIS”) for the third
quarter of 2010 was $358.2 million, 17% higher than the prior-year
period. Excluding the unfavorable impact of foreign currency
translation, revenue increased 20 percent. U.S. revenue of $207.2
million for the third quarter of 2010 was up 26% from the same period of
2009. Outside the U.S., revenue of $151.0 million grew 7 percent.
Within MIS, global corporate finance revenue of $144.9 million in the
third quarter of 2010 increased 43% from the same quarter of 2009. U.S.
corporate finance revenue rose 51%, driven by strong high-yield bank
loan and bond origination for refinancing and increased merger and
acquisition activity. Outside the U.S., revenue grew 29% from the
prior-year period, primarily due to increased high-yield bond issuance
in Europe and improved activity in Asia and Latin America.
Global structured finance revenue totaled $70.1 million for the third
quarter of 2010, a decline of 11% from a year earlier. U.S. structured
finance revenue decreased 8% from the year-ago period, with lower
derivatives activity partially offset by improved issuance in commercial
real estate finance. Structured finance revenue was down 15% outside the
U.S., as reduced European derivatives and securitization issuance was
partially offset by higher European covered bond activity.
Global financial institutions revenue of $73.6 million in the third
quarter of 2010 grew 17% compared to the same quarter of 2009. Financial
institutions revenue rose 14% in the U.S. due to higher insurance sector
issuance, and grew 19% outside the U.S., primarily reflecting greater
activity in the banking sector in most regions.
Global public, project and infrastructure finance revenue was $69.6
million for the third quarter of 2010, increasing 13% from the third
quarter of 2009. U.S. revenue grew 24%, driven by the public finance and
infrastructure sectors. Non-U.S. revenue declined 7% from the prior-year
period primarily as a result of reduced issuance for European
infrastructure finance.
Global revenue for Moody’s Analytics (“MA”) for the third quarter of
2010 reached $155.1 million, 6% above the same quarter of 2009,
primarily driven by the delivery of risk management software projects
and improving demand for research and data. The impact of foreign
currency translation was negligible. Revenue from research, data and
analytics of $106.0 million increased 3% from the prior-year period and
risk management software revenue of $42.8 million grew 16 percent.
Professional services revenue of $6.3 million was flat with the
prior-year period.
MA revenue in the third quarter of 2010 was $71.1 million in the U.S.
and $84.0 million outside the U.S., up 10% and 3%, respectively, over
the prior-year period.
Third Quarter Expenses
Third quarter 2010 expenses for Moody’s Corporation of $324.4 million
were 16% higher than the prior-year period primarily due to increased
headcount, higher accruals for incentive compensation reflecting the
stronger full-year outlook, and additional spending related to legal
matters and regulatory requirements. Moody’s reported operating margin
for the third quarter of 2010 was 36.8% compared to 38.2% in the third
quarter of 2009. Excluding restructuring items in both periods, third
quarter 2010 expenses of $324.0 million increased 18% from the
prior-year period. The impact of foreign currency translation on
expenses was negligible.
Moody’s effective tax rate was 24.4% for the third quarter of 2010,
compared with 37.5% for the prior-year period. The decrease was largely
due to a one-time tax benefit associated with foreign earnings.
Year-to-Date Results
Moody’s Corporation revenue for the first nine months of 2010 totaled
$1,467.7 million, an increase of 12% from $1,311.4 million for the same
period of 2009. Expenses for the first nine months of 2010 were $891.5
million, an increase of 11% from a year ago. Operating income of $576.2
million grew 13% from $508.6 million for the same period of 2009. The
impact of foreign currency translation on revenue and operating income
for the first nine months of 2010 was negligible. Diluted earnings per
share of $1.56 for the first nine months of 2010 included a benefit of
$0.02 associated with certain legacy tax matters and minor
restructuring-related adjustments, as well as a one-time tax benefit of
$0.07 associated with foreign earnings. Excluding legacy tax benefits
and restructuring adjustments from both periods, diluted earnings per
share of $1.54 for the first nine months of 2010 increased 20% from
$1.28 for the same period in 2009.
MIS revenue totaled $1,022.3 million for the first nine months of 2010,
an increase of 15% from the prior-year period. MA revenue rose 5% from
the same period of 2009 to $445.4 million.
Capital Allocation and Liquidity
During the third quarter of 2010, Moody’s repurchased 0.8 million shares
at a total cost of $19.7 million and issued 0.8 million shares under
employee stock-based compensation plans. Outstanding shares as of
September 30, 2010 totaled 234.2 million, a 1% reduction from a year
earlier. As of September 30, 2010, Moody’s had $1.3 billion of share
repurchase authority remaining under its current program. Also during
the third quarter, Moody’s completed a public offering of $500 million
of ten-year senior unsecured notes with a 5.5% coupon. Proceeds are
expected to be used for general corporate purposes including repayment
of outstanding commercial paper and other short-term and long-term
borrowings, working capital, capital expenditures, acquisitions and
other business investments, and share buybacks. At quarter-end, Moody’s
had $1.3 billion of outstanding debt and $985 million of additional debt
capacity available under its revolving credit facility. Total cash and
cash equivalents as of September 30, 2010 were $794 million, an increase
of $371 million from a year earlier.
Assumptions and Outlook for Full-Year 2010
Moody’s outlook for 2010 is based on assumptions about many
macroeconomic and capital market factors, including interest rates,
corporate profitability and business investment spending, merger and
acquisition activity, consumer borrowing and securitization, and the
eventual withdrawal of government-sponsored economic stabilization
initiatives. There is an important degree of uncertainty surrounding
these assumptions and, if actual conditions differ from these
assumptions, Moody’s results for the year may differ materially from the
current outlook. Our guidance assumes foreign currency translation at
end-of-quarter exchange rates.
Moody’s is raising its guidance for diluted earnings per share for
full-year 2010 to a range of $1.90 to $1.96. Certain components of 2010
guidance have been modified to reflect our current view of credit market
conditions and implications for the Company. For Moody’s overall, the
Company now expects full-year 2010 revenue to increase in the
high-single to low-double-digit percent range and expenses to increase
in the low-double-digit percent range. We continue to estimate
incremental costs related to new regulation of approximately $15 million
for this year and $15 to 25 million for next year. The Company still
projects the full-year 2010 operating margin in the high-thirties
percent range and now expects the 2010 effective tax rate in the range
of 33 to 34 percent. Share repurchase is expected to continue at modest
levels in 2010, subject to available cash flow and other capital
allocation decisions.
For the global MIS business, full-year 2010 revenue is now expected to
increase in the low-double-digit percent range. We now project MIS
revenue growth in the high-teens percent range within the U.S. and in
the low- to mid-single-digit percent range outside the U.S. Corporate
finance revenue is now expected to increase in the low-thirties percent
range. We now expect structured finance revenue to decline in the
mid-single-digit percent range and revenue from financial institutions
to grow in the mid-single-digit percent range. Public, project and
infrastructure finance revenue is still projected to increase in the
mid-single-digit percent range.
For Moody’s Analytics, we continue to expect full-year 2010 revenue to
increase in the mid-single-digit percent range. We still project revenue
growth in the low-single-digit percent range for research, data and
analytics, while revenue in both the risk management software and
professional services businesses is now expected to increase in the
mid-teens percent range. We still expect MA revenue both in the U.S. and
outside the U.S. to grow in the mid-single-digit percent range.
Conference Call
A conference call to discuss third quarter 2010 results will be held
this morning, October 28, at 11:30 a.m. Eastern Time. Individuals within
the U.S. and Canada can access the call by dialing 1-800-289-0722. Other
callers should dial +1-913-905-3198. Please dial into the call by 11:20
a.m. Eastern Time. The passcode for the call is “Moody’s Corporation.”
The teleconference will be webcast with a slide presentation and can be
accessed on Moody's Shareholder Relations website, http://ir.moodys.com,
until midnight Eastern Time, November 30, 2010.
A replay of the teleconference will be available from 4:00 p.m. Eastern
Time, October 28, 2010 until midnight Eastern Time, November 30, 2010.
The replay can be accessed from within the U.S. and Canada by dialing
1-888-203-1112. Other callers can access the replay at +1-719-457-0820.
The replay confirmation code is 7789748.
Moody's is an essential component of the global capital markets,
providing credit ratings, research, tools and analysis that contribute
to transparent and integrated financial markets. Moody’s Corporation
(NYSE: MCO) is the parent company of Moody's Investors Service, which
provides credit ratings and research covering debt instruments and
securities, and Moody's Analytics, which offers leading-edge software,
advisory services and research for credit and economic analysis and
financial risk management. The Corporation, which reported revenue of
$1.8 billion in 2009, employs approximately 4,300 people worldwide and
maintains a presence in 26 countries. Further information is available
at www.moodys.com.
“Safe Harbor” Statement under the Private Securities Litigation
Reform Act of 1995
Certain statements contained in this release are forward-looking
statements and are based on future expectations, plans and prospects for
Moody’s business and operations that involve a number of risks and
uncertainties. Moody’s outlook for 2010 and other forward-looking
statements in this release are made as of October 28, 2010, and the
Company disclaims any duty to supplement, update or revise such
statements on a going-forward basis, whether as a result of subsequent
developments, changed expectations or otherwise. In connection with the
“safe harbor” provisions of the Private Securities Litigation Reform Act
of 1995, the Company is identifying certain factors that could cause
actual results to differ, perhaps materially, from those indicated by
these forward-looking statements. Those factors include, but are not
limited to, the current world-wide credit market disruptions and
economic slowdown, which is affecting and could continue to affect the
volume of debt securities issued in domestic and/or global capital
markets; other matters that could affect the volume of debt securities
issued, including credit quality concerns, changes in interest rates and
other volatility in the financial markets; the uncertain effectiveness
and possible collateral consequences of U.S. and foreign government
initiatives to respond to the economic slowdown; possible loss of market
share through competition; introduction of competing products or
technologies by other companies; pricing pressures from competitors
and/or customers; the potential emergence of government-sponsored credit
rating agencies; both proposed and recently adopted U.S., foreign, state
and local legislation and regulations, including the Dodd-Frank Wall
Street Reform and Consumer Protection Act; regulations relating to the
oversight of credit rating agencies; provisions in the Dodd-Frank Act
modifying pleading and liability standards applicable to credit rating
agencies in a manner adverse to rating agencies; possible judicial
decisions in various jurisdictions regarding the status of and potential
liabilities of credit rating agencies; the possible loss of key
employees; the outcome of any review by controlling tax authorities of
the Company’s global tax planning initiatives; the outcome of those
legacy tax and legal contingencies that relate to the Company, its
predecessors and their affiliated companies for which Moody’s has
assumed portions of the financial responsibility; the outcome of other
legal actions to which the Company, from time to time, may be named as a
party; the ability of the Company to successfully integrate acquired
businesses; a decline in the demand from financial institutions for
credit risk management tools; and other risk factors as discussed in the
Company’s annual report on Form 10-K for the year ended December 31,
2009, quarterly reports on Form 10-Q for the quarters ended March 31,
2010 and June 30, 2010, and in other filings made by the Company from
time to time with the Securities and Exchange Commission.
|
|
|
Moody's Corporation
|
|
Consolidated Statements of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
Amounts in millions, except per share amounts
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
513.3
|
|
|
$
|
451.8
|
|
|
$
|
1,467.7
|
|
|
$
|
1,311.4
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
153.7
|
|
|
|
135.1
|
|
|
|
423.9
|
|
|
|
385.5
|
|
|
|
Selling, general and administrative
|
|
|
152.2
|
|
|
|
124.3
|
|
|
|
418.5
|
|
|
|
351.2
|
|
|
|
Restructuring
|
|
|
0.4
|
|
|
|
3.7
|
|
|
|
-
|
|
|
|
18.6
|
|
|
|
Depreciation and amortization
|
|
|
18.1
|
|
|
|
16.2
|
|
|
|
49.1
|
|
|
|
47.5
|
|
|
|
Total expenses
|
|
|
324.4
|
|
|
|
279.3
|
|
|
|
891.5
|
|
|
|
802.8
|
|
|
Operating income
|
|
|
188.9
|
|
|
|
172.5
|
|
|
|
576.2
|
|
|
|
508.6
|
|
|
Non-operating (expense) income, net
|
|
|
|
|
|
|
|
|
|
|
Interest (expense) income, net
|
|
|
(12.8
|
)
|
|
|
(11.5
|
)
|
|
|
(35.1
|
)
|
|
|
(20.9
|
)
|
|
|
Other non-operating (expense) income, net
|
|
|
5.3
|
|
|
|
1.7
|
|
|
|
0.7
|
|
|
|
(8.8
|
)
|
|
|
Total
|
|
|
(7.5
|
)
|
|
|
(9.8
|
)
|
|
|
(34.4
|
)
|
|
|
(29.7
|
)
|
|
Income before provision for income taxes
|
|
|
181.4
|
|
|
|
162.7
|
|
|
|
541.8
|
|
|
|
478.9
|
|
|
|
Provision for income taxes
|
|
|
44.2
|
|
|
|
61.0
|
|
|
|
167.3
|
|
|
|
175.1
|
|
|
Net income
|
|
|
137.2
|
|
|
|
101.7
|
|
|
|
374.5
|
|
|
|
303.8
|
|
|
|
Less: net income attributable to noncontrolling interests
|
|
|
1.2
|
|
|
|
1.1
|
|
|
|
4.1
|
|
|
|
3.7
|
|
|
Net income attributable to Moody's Corporation
|
|
$
|
136.0
|
|
|
$
|
100.6
|
|
|
$
|
370.4
|
|
|
$
|
300.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Moody's common shareholders
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.58
|
|
|
$
|
0.43
|
|
|
$
|
1.57
|
|
|
$
|
1.27
|
|
|
|
Diluted
|
|
$
|
0.58
|
|
|
$
|
0.42
|
|
|
$
|
1.56
|
|
|
$
|
1.26
|
|
|
Weighted average number of shares outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
234.3
|
|
|
|
236.4
|
|
|
|
235.5
|
|
|
|
236.0
|
|
|
|
Diluted
|
|
|
235.7
|
|
|
|
238.2
|
|
|
|
237.1
|
|
|
|
237.6
|
|
|
|
|
Moody's Corporation
|
|
Supplemental Revenue Information (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
Amounts in millions
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Moody's Investors Service
|
|
|
|
|
|
|
|
|
|
|
Corporate Finance
|
|
$
|
144.9
|
|
|
$
|
101.4
|
|
|
$
|
399.2
|
|
|
$
|
293.0
|
|
|
|
Structured Finance
|
|
|
70.1
|
|
|
|
79.2
|
|
|
|
214.7
|
|
|
|
226.2
|
|
|
|
Financial Institutions
|
|
|
73.6
|
|
|
|
62.9
|
|
|
|
213.0
|
|
|
|
186.5
|
|
|
|
Public, Project and Infrastructure Finance
|
|
|
69.6
|
|
|
|
61.8
|
|
|
|
195.4
|
|
|
|
180.1
|
|
|
|
Intersegment royalty
|
|
|
15.5
|
|
|
|
14.5
|
|
|
|
46.3
|
|
|
|
43.6
|
|
|
|
Sub-total MIS
|
|
|
373.7
|
|
|
|
319.8
|
|
|
|
1,068.6
|
|
|
|
929.4
|
|
|
Eliminations
|
|
|
(15.5
|
)
|
|
|
(14.5
|
)
|
|
|
(46.3
|
)
|
|
|
(43.6
|
)
|
|
|
Total MIS revenue
|
|
|
358.2
|
|
|
|
305.3
|
|
|
|
1,022.3
|
|
|
|
885.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Moody's Analytics
|
|
|
|
|
|
|
|
|
|
|
Research, Data and Analytics
|
|
|
106.0
|
|
|
|
103.4
|
|
|
|
315.8
|
|
|
|
307.7
|
|
|
|
Risk Management Software
|
|
|
42.8
|
|
|
|
36.8
|
|
|
|
115.3
|
|
|
|
102.8
|
|
|
|
Professional Services
|
|
|
6.3
|
|
|
|
6.3
|
|
|
|
14.3
|
|
|
|
15.1
|
|
|
|
Total MA revenue
|
|
|
155.1
|
|
|
|
146.5
|
|
|
|
445.4
|
|
|
|
425.6
|
|
|
Total Moody's Corporation revenue
|
|
$
|
513.3
|
|
|
$
|
451.8
|
|
|
$
|
1,467.7
|
|
|
$
|
1,311.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Moody's Corporation revenue by geographic area
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
278.3
|
|
|
$
|
229.7
|
|
|
$
|
794.4
|
|
|
$
|
675.7
|
|
|
|
International
|
|
|
235.0
|
|
|
|
222.1
|
|
|
|
673.3
|
|
|
|
635.7
|
|
|
|
|
|
$
|
513.3
|
|
|
$
|
451.8
|
|
|
$
|
1,467.7
|
|
|
$
|
1,311.4
|
|
|
|
|
Moody's Corporation
|
|
Consolidated Interest (Expense) / Income, Net (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
Amounts in millions
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (expense) / income:
|
|
|
|
|
|
|
|
|
|
|
Expense on borrowings
|
|
$
|
(14.0
|
)
|
|
$
|
(10.4
|
)
|
|
$
|
(35.4
|
)
|
|
$
|
(34.8
|
)
|
|
|
Income
|
|
|
0.8
|
|
|
|
0.6
|
|
|
|
1.9
|
|
|
|
2.0
|
|
|
|
Legacy Tax (a)
|
|
|
-
|
|
|
|
-
|
|
|
|
2.5
|
|
|
|
6.5
|
|
|
|
UTPs and other tax related liabilities
|
|
|
(0.2
|
)
|
|
|
(2.4
|
)
|
|
|
(5.3
|
)
|
|
|
4.3
|
|
|
|
Interest capitalized
|
|
|
0.6
|
|
|
|
0.7
|
|
|
|
1.2
|
|
|
|
1.1
|
|
|
Total interest (expense) income, net
|
|
$
|
(12.8
|
)
|
|
$
|
(11.5
|
)
|
|
$
|
(35.1
|
)
|
|
$
|
(20.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The amounts in both nine month periods represent interest income
related to the favorable settlement of Legacy Tax Matters.
|
|
|
|
Moody's Corporation
|
|
Selected Consolidated Balance Sheet Data (Unaudited)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
Amounts in millions
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
793.7
|
|
|
$
|
473.9
|
|
|
Short-term investments
|
|
|
10.8
|
|
|
|
10.0
|
|
|
Total current assets
|
|
|
1,301.4
|
|
|
|
1,012.9
|
|
|
Non-current assets
|
|
|
1,046.8
|
|
|
|
990.4
|
|
|
Total assets
|
|
|
2,348.2
|
|
|
|
2,003.3
|
|
|
Total current liabilities
|
|
|
792.6
|
|
|
|
1,236.0
|
|
|
Total debt (1)
|
|
|
1,260.0
|
|
|
|
1,193.7
|
|
|
Other long-term liabilities
|
|
|
617.6
|
|
|
|
617.2
|
|
|
Total shareholders' deficit
|
|
|
(297.6
|
)
|
|
|
(596.1
|
)
|
|
Total liabilities and shareholders' deficit
|
|
|
2,348.2
|
|
|
|
2,003.3
|
|
|
|
|
|
|
|
|
Actual number of shares outstanding
|
|
|
234.2
|
|
|
|
236.9
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
(1) Total debt consists of the following:
|
|
2010
|
|
2009
|
|
Commercial Paper
|
|
$
|
15.0
|
|
|
$
|
443.7
|
|
|
Series 2005-1 Notes due 2015
|
|
|
300.0
|
|
|
|
300.0
|
|
|
Series 2007-1 Notes due 2017
|
|
|
300.0
|
|
|
|
300.0
|
|
|
2008 Term Loan due 2013*
|
|
|
148.1
|
|
|
|
150.0
|
|
|
2010 Senior Notes due 2020†
|
|
|
496.9
|
|
|
|
-
|
|
|
Total debt‡
|
|
$
|
1,260.0
|
|
|
$
|
1,193.7
|
|
|
|
|
|
* Various payments through 2013
|
|
|
|
|
† During the third quarter of 2010 the Company issued $500 million
of 5.5% publicly traded Senior Notes which mature on September 1,
2020. The notes were offered to the public at 99.374% of the face
amount.
|
|
|
|
|
|
‡ Of the total debt shown in the table above, $24.4 million is
classified within total current liabilities and consists of $9.4
million representing the current portion of borrowings under the
2008 Term Loan and $15.0 million of borrowings under the Company's
commercial paper program.
|
|
|
|
Moody's Corporation
|
|
Reconciliation to Non-GAAP Financial Measures (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts in millions,
|
Three Months Ended September 30,
|
|
except per share amounts
|
2010
|
|
2009
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
As
|
|
Restructuring
|
|
Financial
|
|
As
|
|
Restructuring
|
|
Financial
|
|
|
Reported
|
|
(a)
|
|
Measures*
|
|
Reported
|
|
(a)
|
|
Measures*
|
|
Total expenses
|
$
|
324.4
|
|
$
|
(0.4)
|
|
$
|
324.0
|
|
$
|
279.3
|
|
$
|
(3.7)
|
|
$
|
275.6
|
|
Operating income
|
$
|
188.9
|
|
$
|
0.4
|
|
|
$
|
189.3
|
|
$
|
172.5
|
|
$
|
3.7
|
|
|
$
|
176.2
|
|
Provision for income taxes
|
$
|
44.2
|
|
$
|
0.1
|
|
|
$
|
44.3
|
|
$
|
61.0
|
|
$
|
1.4
|
|
|
$
|
62.4
|
|
Net income attributable to
Moody's Corporation
|
$
|
136.0
|
|
$
|
0.3
|
|
|
$
|
136.3
|
|
$
|
100.6
|
|
$
|
2.3
|
|
|
$
|
102.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to
Moody's common
shareholders
|
|
Basic
|
$
|
0.58
|
|
$
|
-
|
|
|
$
|
0.58
|
|
$
|
0.43
|
|
$
|
0.01
|
|
|
$
|
0.44
|
|
Diluted
|
$
|
0.58
|
|
$
|
-
|
|
|
$
|
0.58
|
|
$
|
0.42
|
|
$
|
0.01
|
|
|
$
|
0.43
|
|
|
|
|
*In addition to its reported results, Moody’s has included in the
table above adjusted results that the Securities and Exchange
Commission defines as “non-GAAP financial measures.” Management
believes that such non-GAAP financial measures, when read in
conjunction with the Company’s reported results, can provide
useful supplemental information for investors analyzing period to
period comparisons of the Company’s results. May not add due to
rounding.
|
|
|
|
The tables above show Moody's consolidated results for each of the
three month periods ended September 30, 2010 and 2009, adjusted to
exclude the impact of the following:
|
|
|
|
|
(a) To exclude amounts related to the 2009 restructuring charge as
well as minor adjustments related to both the 2009 and 2007
restructuring charges. Additionally, includes the tax impacts of the
aforementioned adjustments.
|
|
|
|
Moody's Corporation
|
|
Reconciliation to Non-GAAP Financial Measures (Unaudited)
|
|
|
|
Amounts in millions,
|
Nine Months Ended September 30,
|
|
except per share
|
2010
|
2009
|
|
amounts
|
As
|
Restruc-
turing
|
Legacy
|
Non-GAAP
Financial
|
As
|
Restruc-
turing
|
Legacy
|
Non-GAAP
Financial
|
|
|
Reported
|
(a)
|
Tax (b)
|
Measures*
|
Reported
|
(a)
|
Tax (b)
|
Measures*
|
|
Total expenses
|
$
|
891.5
|
|
$
|
-
|
$
|
-
|
|
$
|
891.5
|
|
$
|
802.8
|
|
$
|
(18.6
|
)
|
$
|
-
|
|
$
|
784.2
|
|
|
Operating income
|
$
|
576.2
|
|
$
|
-
|
$
|
-
|
|
$
|
576.2
|
|
$
|
508.6
|
|
$
|
18.6
|
|
$
|
-
|
|
$
|
527.2
|
|
|
Interest (expense)
income, net
|
$
|
(35.1
|
)
|
$
|
-
|
$
|
(2.5
|
)
|
$
|
(37.6
|
)
|
$
|
(20.9
|
)
|
$
|
-
|
|
$
|
(6.5
|
)
|
$
|
(27.4
|
)
|
|
Provision for
income taxes
|
$
|
167.3
|
|
$
|
-
|
$
|
2.1
|
|
$
|
169.4
|
|
$
|
175.1
|
|
$
|
7.0
|
|
$
|
1.7
|
|
$
|
183.8
|
|
|
Net income
attributable
to Moody's
Corporation
|
$
|
370.4
|
|
$
|
-
|
$
|
(4.6
|
)
|
$
|
365.8
|
|
$
|
300.1
|
|
$
|
11.6
|
|
$
|
(8.2
|
)
|
$
|
303.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to
Moody's
common
shareholders
|
|
|
|
Basic
|
$
|
1.57
|
|
$
|
-
|
$
|
(0.02
|
)
|
$
|
1.55
|
|
$
|
1.27
|
|
$
|
0.05
|
|
$
|
(0.03
|
)
|
$
|
1.29
|
|
|
Diluted
|
$
|
1.56
|
|
$
|
-
|
$
|
(0.02
|
)
|
$
|
1.54
|
|
$
|
1.26
|
|
$
|
0.05
|
|
$
|
(0.03
|
)
|
$
|
1.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* In addition to its reported results, Moody’s has included in the
table above adjusted results that the Securities and Exchange
Commission defines as “non-GAAP financial measures.” Management
believes that such non-GAAP financial measures, when read in
conjunction with the Company’s reported results, can provide
useful supplemental information for investors analyzing period to
period comparisons of the Company’s results. May not add due to
rounding.
|
|
|
|
|
The tables above show Moody's consolidated results for each of the
nine month periods ended September 30, 2010 and 2009, adjusted to
exclude the impact of the following:
|
|
|
|
|
(a) To exclude amounts related to the 2009 restructuring charge as
well as minor adjustments related to both the 2009 and 2007
restructuring charges. Additionally, includes the tax impacts of the
aforementioned adjustments.
|
|
|
|
(b) To exclude benefits relating to the resolution of certain legacy
tax matters.
|
Source: Moody’s Corporation