-
3Q11 revenue up 4% to $531.3 million
-
3Q11 operating income up 4% to $196.1 million
-
Reported 3Q11 EPS of $0.57 down 2% from 3Q10
-
Reaffirming FY 2011 EPS guidance range of $2.38 to $2.48; expecting to
be at the upper end of the range
NEW YORK--(BUSINESS WIRE)--
Moody’s Corporation (NYSE: MCO) today announced results for the third
quarter 2011.
Summary of Results for Third Quarter 2011
Moody’s reported revenue of $531.3 million for the three months ended
September 30, 2011, an increase of 4% from $513.3 million for the third
quarter of 2010. Operating income for the quarter was $196.1 million, a
4% increase from $188.9 million for the same period last year. Diluted
earnings per share were $0.57 for the third quarter of 2011, including
$0.03 from the favorable resolution of a state tax matter.
"Despite difficult debt issuance conditions, Moody’s achieved
year-on-year revenue and operating income growth in the third quarter of
2011, with strong performance by Moody’s Analytics offsetting a modest
revenue decline at Moody’s Investors Service," said Raymond McDaniel,
Chairman and Chief Executive Officer of Moody’s. "Though volatile market
conditions in the U.S. and Europe may continue, we are reaffirming our
2011 EPS guidance of $2.38 to $2.48 and we expect to be at the upper end
of the range.”
Third Quarter Revenue
For Moody’s Corporation overall, global revenue of $531.3 million
increased 4% from the third quarter of 2010. Excluding the favorable
impact of foreign currency translation, revenue grew 1 percent. U.S.
revenue of $274.3 million for the third quarter of 2011 decreased 1%
from the third quarter of 2010, while revenue generated outside the U.S.
of $257.0 million increased 9% from the prior-year period. Revenue
generated outside the U.S. represented 48% of Moody’s total revenue for
the quarter, up from 46% in the year-ago period.
Global revenue for Moody’s Investors Service (“MIS”) for the third
quarter of 2011 was $351.4 million, a decrease of 2% from the prior-year
period. Excluding the impact of foreign currency translation, revenue
was down 5 percent. U.S. revenue of $198.8 million for the third quarter
of 2011 decreased 4% from the third quarter of 2010. Outside the U.S.,
revenue of $152.6 million increased 1% from the year-ago period.
Within MIS, global corporate finance revenue of $129.0 million in the
third quarter of 2011 was down 11% from the same quarter of 2010
reflecting weaker issuance primarily in speculative grade bonds.
Corporate finance revenue was down 11% in the U.S. and 10% outside the
U.S.
Global structured finance revenue totaled $82.0 million for the third
quarter of 2011, an increase of 17% from a year earlier. U.S. structured
finance revenue grew 20% from the year-ago period, primarily due to
strength in commercial real estate. Non-U.S. structured finance revenue
increased 14%, driven primarily by European covered bonds.
Global financial institutions revenue of $72.1 million in the third
quarter of 2011 decreased 2% compared to the prior-year period. U.S.
financial institutions revenue declined 1%, while non-U.S. revenue fell
3 percent.
Global public, project and infrastructure finance revenue was $68.3
million for the third quarter of 2011, a decrease of 2% from the third
quarter of 2010. U.S. revenue declined 8% from the prior-year period
reflecting lower project and infrastructure finance. Non-U.S. revenue
grew 13%, primarily due to gains in infrastructure finance.
Global revenue for Moody’s Analytics (“MA”) for the third quarter of
2011 was $179.9 million, up 16% from the third quarter of 2010. The
impact of foreign currency translation was negligible. Revenue from
research, data and analytics of $115.3 million increased by 9% from the
prior-year period and risk management software revenue of $47.9 million
grew 12 percent. Professional services revenue of $16.7 million more
than doubled from the prior-year period, primarily reflecting the
acquisition of CSI Global Education in November 2010.
In the U.S., MA revenue of $75.5 million for the third quarter of 2011
increased 6% from the prior-year period. Outside the U.S., revenue of
$104.4 million grew 24% as compared with the same quarter of 2010.
Third Quarter Expenses
Third quarter 2011 expenses for Moody’s Corporation of $335.2 million
were 3% higher than in the prior-year period. Excluding the impact of
foreign currency translation, expenses grew 1 percent. Moody’s reported
operating margin for the third quarter of 2011 was 36.9%, essentially
flat to the third quarter of 2010.
Moody’s effective tax rate was 28.5% for the third quarter of 2011,
compared with 24.4% for the prior-year period. The increase in the
effective tax rate was primarily due to a tax benefit associated with
foreign earnings in 2010, partially offset by a tax benefit from the
settlement of state tax audits in the current period.
Year-to-Date Results
Moody’s Corporation revenue for the first nine months of 2011 totaled
$1,713.6 million, an increase of 17% from $1,467.7 million for the same
period of 2010. Excluding the impact of foreign currency translation,
revenue growth was 15 percent. Revenue at Moody’s Investors Service
totaled $1,202.0 million for the first nine months of 2011, an increase
of 18% from the prior-year period. Moody’s Analytics revenue rose 15%
from the first nine months of 2010 to $511.6 million.
Moody’s Corporation expenses for the first nine months of 2011 were
$997.3 million, 12% higher than a year ago. Excluding the impact of
foreign currency translation, expenses for the first nine months of 2011
grew 9 percent. Moody’s Corporation operating income for the first nine
months of 2011 was $716.3 million, an increase of 24% from $576.2
million for the same period of 2010. The impact of foreign currency
translation on operating income was negligible. Diluted earnings per
share of $2.06 for the first nine months of 2011 included a legacy tax
benefit of $0.03, as well as other tax benefits totaling $0.09.
Excluding legacy tax benefits in both periods, diluted earnings per
share of $2.03 for the first nine months of 2011 increased 32% from
$1.54 for the first nine months of 2010.
Capital Allocation and Liquidity
During the third quarter of 2011, Moody’s repurchased 6.8 million shares
and issued 0.1 million shares under employee stock-based compensation
plans. Outstanding shares as of September 30, 2011 totaled 222.0
million, representing a 5% decline from a year earlier. As of September
30, 2011, Moody’s had $0.9 billion of share repurchase authority
remaining under its current program. At quarter-end, Moody’s had $1.2
billion of outstanding debt and $1.0 billion of additional debt capacity
available under its revolving credit facility. At quarter-end, total
cash and cash equivalents were $854.2 million, an increase of $60.5
million from a year earlier.
Assumptions and Outlook for Full-Year 2011
Moody’s outlook for 2011 is based on assumptions about many
macroeconomic and capital market factors, including interest rates,
corporate profitability and business investment spending, merger and
acquisition activity, and consumer borrowing and securitization. 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 reaffirming its EPS guidance for the full-year 2011 and
expects to be at the upper end of the range. For Moody’s overall, the
Company now expects full-year 2011 revenue to grow in the
low-double-digit percent range. Full-year 2011 expenses are now
projected to increase in the high-single-digit percent range. Full-year
2011 operating margin is now projected to be approximately 39%, due to
the planned increase in expenses and lower expected revenue in the
fourth quarter. The effective tax rate is now expected to be
approximately 31 percent. Share repurchase remains subject to available
cash flow and other capital allocation decisions. The Company still
expects diluted earnings per share for full-year 2011 in the range of
$2.38 to $2.48 but expects to be at the upper end of the range.
For the global MIS business, revenue for full-year 2011 is now expected
to increase in the high-single-digit percent range. Within the U.S., MIS
revenue is now expected to increase in the mid-single-digit percent
range, while non-U.S. revenue is now projected to increase in the
low-teens percent range. Corporate finance revenue is now forecasted to
grow in the low-double-digit percent range. Revenue from structured
finance is now projected to increase in the mid-teens percent range.
Financial institutions is now forecasted to increase in the
mid-single-digit percent range, while public, project and infrastructure
finance revenue is still expected to be about flat.
For Moody’s Analytics, full-year 2011 revenue is still expected to
increase in the low-double-digit percent range. Revenue growth is still
projected in the mid-single-digit percent range for research, data and
analytics and in the low- to mid-single-digit percent range for risk
management software. Professional services revenue is still projected to
more than double, primarily reflecting revenue from the late 2010
acquisition of CSI Global Education and very strong performance in the
risk management advisory business. MA revenue is now expected to
increase in the high-single-digit percent range in the U.S. and in the
mid-teens percent range outside the U.S.
Conference Call
A conference call to discuss third quarter 2011 results will be held
this morning, October 27, 2011, 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 Investor Relations website, http://ir.moodys.com,
until 11:59 p.m. Eastern Time, November 25, 2011.
A replay of the teleconference will be available from 3:30 p.m. Eastern
Time, October 27, 2011 until 11:59 p.m. Eastern Time, November 25, 2011.
The replay can be accessed from within the U.S. and Canada by dialing
888-203-1112. Other callers can access the replay at +1-719-457-0820.
The replay confirmation code is 9202906.
*****
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
$2.0 billion in 2010, employs approximately 4,700 people worldwide and
maintains a presence in 27 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 2011 and other forward-looking
statements in this release are made as of October 27, 2011, 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,
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
|
|
2011
|
|
2010
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
531.3
|
|
|
$
|
513.3
|
|
|
|
|
$
|
1,713.6
|
|
|
$
|
1,467.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
171.0
|
|
|
|
153.7
|
|
|
|
|
|
502.3
|
|
|
|
423.9
|
|
|
|
Selling, general and administrative
|
|
|
145.0
|
|
|
|
152.2
|
|
|
|
|
|
436.4
|
|
|
|
418.5
|
|
|
|
Restructuring
|
|
|
0.2
|
|
|
|
0.4
|
|
|
|
|
|
0.1
|
|
|
|
-
|
|
|
|
Depreciation and amortization
|
|
|
19.0
|
|
|
|
18.1
|
|
|
|
|
|
58.5
|
|
|
|
49.1
|
|
|
|
|
Total expenses
|
|
|
335.2
|
|
|
|
324.4
|
|
|
|
|
|
997.3
|
|
|
|
891.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
196.1
|
|
|
|
188.9
|
|
|
|
|
|
716.3
|
|
|
|
576.2
|
|
|
Non-operating (expense) income, net
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (expense) income, net
|
|
|
(12.9
|
)
|
|
|
(12.8
|
)
|
|
|
|
|
(45.2
|
)
|
|
|
(35.1
|
)
|
|
|
Other non-operating (expense) income, net
|
|
|
1.6
|
|
|
|
5.3
|
|
|
|
|
|
13.1
|
|
|
|
0.7
|
|
|
|
|
Total
|
|
|
(11.3
|
)
|
|
|
(7.5
|
)
|
|
|
|
|
(32.1
|
)
|
|
|
(34.4
|
)
|
|
Income before provision for income taxes
|
|
|
184.8
|
|
|
|
181.4
|
|
|
|
|
|
684.2
|
|
|
|
541.8
|
|
|
|
Provision for income taxes
|
|
|
52.7
|
|
|
|
44.2
|
|
|
|
|
|
204.3
|
|
|
|
167.3
|
|
|
Net income
|
|
|
132.1
|
|
|
|
137.2
|
|
|
|
|
|
479.9
|
|
|
|
374.5
|
|
|
|
Less: net income attributable to noncontrolling interests
|
|
|
1.4
|
|
|
|
1.2
|
|
|
|
|
|
4.7
|
|
|
|
4.1
|
|
|
Net income attributable to Moody's Corporation
|
|
$
|
130.7
|
|
|
$
|
136.0
|
|
|
|
|
$
|
475.2
|
|
|
$
|
370.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Moody's common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.58
|
|
|
$
|
0.58
|
|
|
|
|
$
|
2.09
|
|
|
$
|
1.57
|
|
|
|
Diluted
|
|
$
|
0.57
|
|
|
$
|
0.58
|
|
|
|
|
$
|
2.06
|
|
|
$
|
1.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
226.0
|
|
|
|
234.3
|
|
|
|
|
|
227.7
|
|
|
|
235.5
|
|
|
|
Diluted
|
|
|
229.0
|
|
|
|
235.7
|
|
|
|
|
|
230.7
|
|
|
|
237.1
|
|
|
|
|
Moody's Corporation
|
|
Supplemental Revenue Information (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
Amounts in millions
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Moody's Investors Service
|
|
|
|
|
|
|
|
|
|
|
Corporate Finance
|
|
$
|
129.0
|
|
|
$
|
144.9
|
|
|
$
|
510.9
|
|
|
$
|
399.2
|
|
|
|
Structured Finance
|
|
|
82.0
|
|
|
|
70.1
|
|
|
|
257.7
|
|
|
|
214.7
|
|
|
|
Financial Institutions
|
|
|
72.1
|
|
|
|
73.6
|
|
|
|
228.1
|
|
|
|
213.0
|
|
|
|
Public, Project and Infrastructure Finance
|
|
|
68.3
|
|
|
|
69.6
|
|
|
|
205.3
|
|
|
|
195.4
|
|
|
|
Intersegment royalty
|
|
|
16.8
|
|
|
|
15.5
|
|
|
|
49.0
|
|
|
|
46.3
|
|
|
|
Sub-total MIS
|
|
|
368.2
|
|
|
|
373.7
|
|
|
|
1,251.0
|
|
|
|
1,068.6
|
|
|
Eliminations
|
|
|
(16.8
|
)
|
|
|
(15.5
|
)
|
|
|
(49.0
|
)
|
|
|
(46.3
|
)
|
|
|
Total MIS revenue
|
|
|
351.4
|
|
|
|
358.2
|
|
|
|
1,202.0
|
|
|
|
1,022.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Moody's Analytics
|
|
|
|
|
|
|
|
|
|
|
Research, Data and Analytics
|
|
|
115.3
|
|
|
|
106.0
|
|
|
|
335.9
|
|
|
|
315.8
|
|
|
|
Risk Management Software
|
|
|
47.9
|
|
|
|
42.8
|
|
|
|
127.5
|
|
|
|
115.3
|
|
|
|
Professional Services
|
|
|
16.7
|
|
|
|
6.3
|
|
|
|
48.2
|
|
|
|
14.3
|
|
|
|
Intersegment license fee
|
|
|
2.6
|
|
|
|
2.3
|
|
|
|
7.8
|
|
|
|
7.0
|
|
|
|
Sub-total MA
|
|
|
182.5
|
|
|
|
157.4
|
|
|
|
519.4
|
|
|
|
452.4
|
|
|
Eliminations
|
|
|
(2.6
|
)
|
|
|
(2.3
|
)
|
|
|
(7.8
|
)
|
|
|
(7.0
|
)
|
|
|
Total MA revenue
|
|
|
179.9
|
|
|
|
155.1
|
|
|
|
511.6
|
|
|
|
445.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Moody's Corporation revenue
|
|
$
|
531.3
|
|
|
$
|
513.3
|
|
|
$
|
1,713.6
|
|
|
$
|
1,467.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Moody's Corporation revenue by geographic area
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
274.3
|
|
|
$
|
278.3
|
|
|
$
|
890.7
|
|
|
$
|
794.4
|
|
|
|
International
|
|
|
257.0
|
|
|
|
235.0
|
|
|
|
822.9
|
|
|
|
673.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
531.3
|
|
|
$
|
513.3
|
|
|
$
|
1,713.6
|
|
|
$
|
1,467.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Moody's Corporation
|
|
Consolidated Interest (Expense) / Income, Net (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
|
|
|
September 30,
|
|
Amounts in millions
|
|
2011
|
|
2010
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (expense) / income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense on borrowings
|
|
$
|
(16.2
|
)
|
|
$
|
(14.0
|
)
|
|
|
|
|
$
|
(48.9
|
)
|
|
$
|
(35.4
|
)
|
|
|
Income
|
|
|
1.6
|
|
|
|
0.8
|
|
|
|
|
|
|
3.9
|
|
|
|
1.9
|
|
|
|
Legacy Tax (a)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
3.7
|
|
|
|
2.5
|
|
|
|
UTPs and other tax related liabilities
|
|
|
0.9
|
|
|
|
(0.2
|
)
|
|
|
|
|
|
(6.1
|
)
|
|
|
(5.3
|
)
|
|
|
Interest capitalized
|
|
|
0.8
|
|
|
|
0.6
|
|
|
|
|
|
|
2.2
|
|
|
|
1.2
|
|
|
|
|
Total interest (expense) income, net
|
|
$
|
(12.9
|
)
|
|
$
|
(12.8
|
)
|
|
|
|
|
$
|
(45.2
|
)
|
|
$
|
(35.1
|
)
|
|
(a) The 2011 amount represents a reversal of $2.8 million of
accrued interest expense relating to the favorable resolution of a
Legacy Tax Matter and $0.9 million of interest income related to a
pre-spinoff tax year. The 2010 amount represents interest income
related to the favorable settlement of Legacy Tax Matters.
|
|
|
|
Moody's Corporation
|
|
Selected Consolidated Balance Sheet Data (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
|
2011
|
|
2010
|
|
Amounts in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
854.2
|
|
|
$
|
659.6
|
|
|
Short-term investments
|
|
|
13.3
|
|
|
|
12.7
|
|
|
Total current assets
|
|
|
1,360.0
|
|
|
|
1,343.0
|
|
|
Non-current assets
|
|
|
1,161.3
|
|
|
|
1,197.3
|
|
|
Total assets
|
|
|
2,521.3
|
|
|
|
2,540.3
|
|
|
Total current liabilities
|
|
|
834.9
|
|
|
|
933.8
|
|
|
Total debt (1)
|
|
|
1,244.0
|
|
|
|
1,239.6
|
|
|
Other long-term liabilities
|
|
|
659.7
|
|
|
|
676.6
|
|
|
Total shareholders' deficit
|
|
|
(174.2
|
)
|
|
|
(298.4
|
)
|
|
Total liabilities and shareholders' deficit
|
|
|
2,521.3
|
|
|
|
2,540.3
|
|
|
|
|
|
|
|
|
|
Actual number of shares outstanding
|
|
|
222.0
|
|
|
|
230.8
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
(1) Total debt consists of the following:
|
|
2011
|
|
2010
|
|
Series 2005-1 Notes due 2015 (a)
|
|
|
308.0
|
|
|
|
296.3
|
|
|
Series 2007-1 Notes due 2017
|
|
|
300.0
|
|
|
|
300.0
|
|
|
2008 Term Loan due 2013 (b)
|
|
|
138.8
|
|
|
|
146.3
|
|
|
2010 Senior Notes due 2020 (c)
|
|
|
497.2
|
|
|
|
497.0
|
|
|
Total debt (d)
|
|
$
|
1,244.0
|
|
|
$
|
1,239.6
|
|
(a) Includes an $8.0 million and ($3.7) million fair value
adjustment on an interest rate hedge at September 30, 2011 and December
31, 2010, respectively
(b) Various payments through 2013
(c) Represents $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
(d) Of the total debt shown in the table above, $43.1 million
and $11.3 million are classified within total current liabilities at
September 30, 2011 and December 31, 2010, respectively, and consist of
the current portion of borrowings under the 2008 Term Loan
|
|
|
Moody's Corporation
|
|
Reconciliation to Non-GAAP Financial Measures (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
Amounts in millions, except per share amounts
|
|
2011
|
|
2010
|
|
|
|
As Reported
|
|
Restructuring (a)
|
|
Legacy Tax (b)
|
|
Non-GAAP Financial Measures*
|
|
As Reported
|
|
Legacy Tax (b)
|
|
Non-GAAP Financial Measures*
|
|
Total expenses
|
|
$
|
997.3
|
|
|
|
$
|
(0.1
|
)
|
|
$
|
-
|
|
|
|
$
|
997.2
|
|
|
$
|
891.5
|
|
|
|
$
|
-
|
|
|
|
$
|
891.5
|
|
|
Operating income
|
|
$
|
716.3
|
|
|
|
$
|
0.1
|
|
|
$
|
-
|
|
|
|
$
|
716.4
|
|
|
$
|
576.2
|
|
|
|
$
|
-
|
|
|
|
$
|
576.2
|
|
|
Interest (expense), income, net
|
|
$
|
(45.2
|
)
|
|
|
$
|
-
|
|
|
$
|
(0.9
|
)
|
|
|
$
|
(46.1
|
)
|
|
$
|
(35.1
|
)
|
|
|
$
|
(2.5
|
)
|
|
|
$
|
(37.6
|
)
|
|
Other non-operating (expense) income, net
|
|
$
|
13.1
|
|
|
|
$
|
-
|
|
|
$
|
(6.4
|
)
|
|
|
$
|
6.7
|
|
|
$
|
0.7
|
|
|
|
$
|
-
|
|
|
|
$
|
0.7
|
|
|
Provision for income taxes
|
|
$
|
204.3
|
|
|
|
$
|
-
|
|
|
$
|
(0.3
|
)
|
|
|
$
|
204.0
|
|
|
$
|
167.3
|
|
|
|
$
|
2.1
|
|
|
|
$
|
169.4
|
|
|
Net income attributable to Moody's Corporation
|
|
$
|
475.2
|
|
|
|
$
|
0.1
|
|
|
$
|
(7.0
|
)
|
|
|
$
|
468.3
|
|
|
$
|
370.4
|
|
|
|
$
|
(4.6
|
)
|
|
|
$
|
365.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Moody's common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.09
|
|
|
|
$
|
-
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
2.06
|
|
|
$
|
1.57
|
|
|
|
$
|
(0.02
|
)
|
|
|
$
|
1.55
|
|
|
Diluted
|
|
$
|
2.06
|
|
|
|
$
|
-
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
2.03
|
|
|
$
|
1.56
|
|
|
|
$
|
(0.02
|
)
|
|
|
$
|
1.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*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, 2011 and 2010, adjusted to
exclude the impact of the following:
|
|
|
|
(a) To exclude 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
|
Media Contact:
Michael Adler
Vice President
Corporate
Communications
212-553-4667
michael.adler@moodys.com
or
Investor
Relations Contact:
Salli Schwartz
Global Head of Investor
Relations
212-553-4862
sallilyn.schwartz@moodys.com
Source: Moody's Corporation