Forrester Research Reports Second-Quarter Financial Results And An Increase Of $25 Million In Share Repurchase Authorization
Second-Quarter Financial Performance
Total revenues were
On a GAAP basis, net income was
“Forrester met its revenue guidance and exceeded operating margin and
earnings per share for the second quarter,” said
Six-Month Period Ended
Total revenues were
On a GAAP basis, net income was
On a pro forma basis, net income was
A reconciliation of GAAP results to pro forma results may be found in the attached financial tables.
Third-Quarter 2013 (GAAP):
-
Total revenues of approximately
$67.0 million to $70.0 million . - Operating margin of approximately 3.0% to 5.0%.
-
Other income, net of approximately
$0.1 million . - An effective tax rate of 39%.
- Weighted average diluted shares outstanding of approximately 20.8 million.
-
Diluted earnings per share of approximately
$0.07 to $0.11 .
Third-Quarter 2013 (Pro Forma):
Pro forma financial guidance for the third quarter of 2013 excludes
stock-based compensation expense of
- Pro forma operating margin of approximately 6.5% to 8.5%.
- Pro forma effective tax rate of 39%.
-
Pro forma diluted earnings per share of approximately
$0.13 to $0.17 .
Our full-year 2013 guidance as follows:
Full-Year 2013 (GAAP):
-
Total revenues of approximately
$290.0 million to $298.0 million . - Operating margin of approximately 6.0% to 7.0%.
-
Other income, net of approximately
$0.8 million . - An effective tax rate of 39%.
- Weighted average diluted shares outstanding of approximately 21.5 million.
-
Diluted earnings per share of approximately
$0.52 to $0.59 .
Full-Year 2013 (Pro Forma):
Pro forma financial guidance for full-year 2013 excludes stock-based
compensation expense of
- Pro forma operating margin of approximately 9.5% to 10.5%.
- Pro forma effective tax rate of 39%.
-
Pro forma diluted earnings per share of approximately
$0.79 to $0.86 .
Quarterly Dividend
About
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements include, but are not limited to, Forrester’s financial
guidance for the third quarter of and full-year 2013, statements about
Forrester’s plans for the repurchase of its stock, and statements about
Forrester’s future financial performance and financial condition. These
statements are based on Forrester’s current plans and expectations and
involve risks and uncertainties that could cause actual future
activities and results of operations to be materially different from
those set forth in the forward-looking statements. Important factors
that could cause actual future activities and results to differ include,
among others, Forrester’s ability to retain and enrich memberships for
its research products and services, technology spending, Forrester’s
ability to respond to business and economic conditions and market
trends, the risks and challenges inherent in international business
activities, competition and industry consolidation, the ability to
attract and retain professional staff, Forrester’s dependence on key
personnel, the possibility of network disruptions and security breaches,
and possible variations in Forrester’s quarterly operating results.
Financial guidance regarding shares outstanding and per-share amounts is
based on certain assumptions that are subject to change, including as a
result of the number of shares repurchased by
The consolidated statements of income and the table of key financial data are attached.
© 2013,
Forrester Research, Inc. | ||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||
(Unaudited, in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues: | ||||||||||||||||
Research services | $ | 50,512 | $ | 51,072 | $ | 100,890 | $ | 100,832 | ||||||||
Advisory services and other | 27,652 | 28,021 | 48,773 | 48,521 | ||||||||||||
Total revenues | 78,164 | 79,093 | 149,663 | 149,353 | ||||||||||||
Operating expenses: | ||||||||||||||||
Cost of services and fulfillment | 30,786 | 29,828 | 57,813 | 56,766 | ||||||||||||
Selling and marketing | 26,789 | 26,267 | 53,846 | 51,400 | ||||||||||||
General and administrative | 8,420 | 8,645 | 17,907 | 18,256 | ||||||||||||
Depreciation | 2,302 | 2,255 | 4,662 | 4,248 | ||||||||||||
Amortization of intangible assets | 554 | 586 | 1,113 | 1,200 | ||||||||||||
Reorganization costs | 314 | 51 | 1,905 | 1,394 | ||||||||||||
Total operating expenses | 69,165 | 67,632 | 137,246 | 133,264 | ||||||||||||
Income from operations | 8,999 | 11,461 | 12,417 | 16,089 | ||||||||||||
Other income, net | 255 | 130 | 631 | 539 | ||||||||||||
Gains (losses) on investments, net | (51 | ) | 84 | (102 | ) | 143 | ||||||||||
Income before income taxes | 9,203 | 11,675 | 12,946 | 16,771 | ||||||||||||
Income tax provision | 3,581 | 3,906 | 4,983 | 5,821 | ||||||||||||
Net Income | $ | 5,622 | $ | 7,769 | $ | 7,963 | $ | 10,950 | ||||||||
Diluted income per share | $ | 0.26 | $ | 0.34 | $ | 0.36 | $ | 0.47 | ||||||||
Diluted weighted average shares outstanding | 21,747 | 23,023 | 22,202 | 23,098 | ||||||||||||
Basic income per share | $ | 0.26 | $ | 0.34 | $ | 0.37 | $ | 0.48 | ||||||||
Basic weighted average shares outstanding | 21,256 | 22,583 | 21,781 | 22,660 | ||||||||||||
Pro forma data (1): | ||||||||||||||||
Income from operations | $ | 8,999 | $ | 11,461 | $ | 12,417 | $ | 16,089 | ||||||||
Amortization of intangible assets | 554 | 586 | 1,113 | 1,200 | ||||||||||||
Reorganization costs | 314 | 51 | 1,905 | 1,394 | ||||||||||||
Stock-based compensation included in the | ||||||||||||||||
following expense categories: | ||||||||||||||||
Cost of services and fulfillment | 743 | 725 | 1,647 | 1,378 | ||||||||||||
Selling and marketing | 150 | 207 | 572 | 431 | ||||||||||||
General and administrative | (25 | ) | 257 | 509 | 703 | |||||||||||
Pro forma income from operations | 10,735 | 13,287 | 18,163 | 21,195 | ||||||||||||
Other income, net | 255 | 130 | 631 | 539 | ||||||||||||
Pro forma income before income taxes | 10,990 | 13,417 | 18,794 | 21,734 | ||||||||||||
Pro forma income tax provision | 4,286 | 5,233 | 7,330 | 8,477 | ||||||||||||
Pro forma net income | $ | 6,704 | $ | 8,184 | $ | 11,464 | $ | 13,257 | ||||||||
Pro forma diluted income per share | $ | 0.31 | $ | 0.36 | $ | 0.52 | $ | 0.57 | ||||||||
Diluted weighted average shares outstanding | 21,747 | 23,023 | 22,202 | 23,098 | ||||||||||||
(1) Forrester believes that pro forma financial results provide investors with consistent and comparable information to aid in the understanding of Forrester's ongoing business, and are also used by Forrester in making compensation decisions. Our pro forma presentation excludes amortization of acquisition-related intangible assets, stock-based compensation, reorganization costs and net gains or losses from investments, as well as their related tax effects. The pro forma data does not purport to be prepared in accordance with Accounting Principles Generally Accepted in the United States. |
|
Forrester Research, Inc. | ||||||||||
Key Financial Data | ||||||||||
(Unaudited, dollars in thousands) | ||||||||||
June 30, | December 31, | |||||||||
2013 | 2012 | |||||||||
Balance sheet data: | ||||||||||
Cash, cash equivalents and marketable investments | $ | 187,553 | $ | 242,656 | ||||||
Accounts receivable, net | $ | 39,785 | $ | 74,623 | ||||||
Deferred revenue | $ | 136,803 | $ | 150,479 | ||||||
Six Months Ended | ||||||||||
June 30, | ||||||||||
2013 | 2012 | |||||||||
Cash flow data: | ||||||||||
Net cash provided by operating activities | $ | 37,231 | $ | 39,399 | ||||||
Purchases of property and equipment | $ | (1,267 | ) | $ | (3,245 | ) | ||||
Repurchases of common stock | $ | (92,083 | ) | $ | (17,052 | ) | ||||
Dividends paid | $ | (6,414 | ) | $ | (6,356 | ) | ||||
As of | ||||||||||
June 30, | ||||||||||
2013 | 2012 | |||||||||
Metrics: | ||||||||||
Agreement value | $ | 211,025 | $ | 221,555 | ||||||
Client retention | 76 | % | 79 | % | ||||||
Dollar retention | 89 | % | 91 | % | ||||||
Enrichment | 95 | % | 98 | % | ||||||
Number of clients | 2,451 | 2,546 | ||||||||
As of | ||||||||||
June 30, | ||||||||||
2013 | 2012 | |||||||||
Headcount: | ||||||||||
Total headcount | 1,235 | 1,206 | ||||||||
Research staff | 442 | 440 | ||||||||
Sales staff | 469 | 437 |
Source:
Forrester Research, Inc.
Michael Doyle, +1 617-613-6000
Chief
Financial Officer
mdoyle@forrester.com
or
Jon
Symons, + 1 617-613-6104
Vice President, Corporate Communications
press@forrester.com