FactSet Research Systems, a leading provider of integrated financial information and analytical applications, has announced its results for the third quarter of fiscal 2016.
For the quarter ended May 31, 2016, revenues grew to USD287.5 million. Operating income was USD89.3 million compared to USD85.4 million in the prior year period. Net income was USD66.8 million versus USD61.4 million a year ago. Diluted earnings per share were USD1.62 compared to USD1.45 in the same period of fiscal 2015.
Adjusted operating income and margin, adjusted net income and adjusted diluted earnings per share exclude both deal-related amortisation and non-recurring items. The Company believes that these adjusted financial measures better reflect the underlying economic performance of FactSet. A supplementary schedule reconciling GAAP results to these adjusted financial measures is presented on page 10 of this earnings release.
Excluding revenues acquired from acquisitions completed within the last 12 months and the effects of foreign currency, organic revenues grew 9.0 per cent. Adjusted operating income for the quarter, which excludes USD4.1 million of deal-related amortisation and USD1.4 million of professional fees primarily related to the sale of the Company’s Market Metrics business, was USD94.8 million, up 8.1 per cent over the prior year. Adjusted net income increased 9.7 per cent over the year ago third quarter and excludes the after-tax charge of USD2.9 million from deal-related amortisation, the after-tax charge of USD1.0 million from professional fees and USD3.2 million in income tax benefits from finalising prior years’ tax returns and other discrete items. Adjusted diluted EPS rose 12.3 per cent to USD1.64 and excludes the net effect of deal-related amortisation, incremental professional fees and income tax benefits.
“We had another strong quarter, amidst an uncertain market. This reaffirms the strength of the FactSet business model and the appeal of our products and solutions,” says Phil Snow, FactSet’s CEO.
