Thomson Reuters Reports Second-Quarter 2021 Results

TORONTO, Aug. 5, 2021 /CNW/ -- Thomson Reuters (TSX/NYSE: TRI) today reported results for the second quarter ended June 30, 2021:

Thomson Reuters logo. (PRNewsFoto/Thomson Reuters)

  • Total company revenue grew 9% and organic revenue grew 7%;
  • Raised full-year 2021 total company and "Big 3" guidance for revenue growth, adjusted EBITDA margin and free cash flow;
  • Outlook provided for the third quarter of 2021;
  • Change Program on track - achieved $90 million of run-rate operating expense savings through June 30;
  • New $1.2 billion buyback program announced.

"The strong results that we achieved in the first quarter accelerated in the second quarter. Our performance was consistent across the company, above our expectations, and positions us well for the rest of the year and 2022.  These results reflect the confidence of our customers – in both an improving economic environment and in their prospects. This dynamic presents us with a tailwind as customers are spending on products and solutions that fit their workflows and improve their professional lives, which are rapidly evolving," said Steve Hasker, president and CEO of Thomson Reuters.

Mr. Hasker added, "Based on the strong first-half performance and our confidence in the trajectory of the business for second half of the year, we have increased our full-year 2021 guidance."

Consolidated Financial Highlights - Three Months Ended June 30

Three Months Ended June 30,

(Millions of U.S. dollars, except for adjusted EBITDA margin and EPS)

(unaudited)

IFRS Financial Measures(1)

2021

2020

Change

Change at
Constant
Currency

Revenues

$1,532

$1,405

9%


Operating profit

$316

$365

-14%


Diluted earnings per share (EPS)

$2.15

$0.25

n/m


Cash flow from operations

$462

$422

10%


Non-IFRS Financial Measures(1)





Revenues

$1,532

$1,405

9%

7%

Adjusted EBITDA

$502

$479

5%

5%

Adjusted EBITDA margin

32.7%

34.1%

-140bp

-70bp

Adjusted EPS

$0.48

$0.44

9%

9%

Free cash flow

$379

$305

25%



(1)   
In addition to results reported in accordance with International Financial Reporting Standards (IFRS), the company uses certain non-IFRS financial measures as supplemental indicators of its operating performance and financial position. These and other non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in the tables appended to this news release.


n/m: not meaningful

Revenues increased 9%, driven by growth across all of the company's customer segments and a 2% favorable impact from foreign currency.

  • Organic revenues increased 7%, driven by 5% growth in recurring revenues (79% of total revenues), as well as growth in transactions, Reuters News and Global Print revenues, which benefited from a favorable comparison to the second quarter of 2020 when the early stages of the COVID-19 pandemic negatively impacted results.
  • The company's "Big 3" segments (Legal Professionals, Corporates and Tax & Accounting Professionals), which collectively comprised 80% of total revenues, reported organic revenue growth of 7%.

Operating profit decreased 14% as the prior-year period included a significant benefit from the revaluation of warrants that the company previously held in Refinitiv, which was sold to London Stock Exchange Group (LSEG) in January 2021.

  • Adjusted EBITDA, which excludes the impact of the warrant revaluation, among other items, increased 5% as higher revenues more than offset higher costs, which included costs associated with the company's Change Program. The related margin decreased to 32.7% from 34.1% in the prior-year period due to higher costs. Adjusted EBITDA margin was negatively impacted by 270bp due to Change Program costs. Additional information regarding the Change Program is provided later in this news release.

Diluted EPS increased to $2.15 per share from $0.25 per share in the prior-year period due to an increase in the value of the company's LSEG investment.

  • Adjusted EPS, which excludes the increase in value of the company's LSEG investment, as well as other adjustments, increased to $0.48 per share from $0.44 per share in the prior-year period, primarily due to higher adjusted EBITDA.

Cash flow from operations increased as higher revenues and favorable movements in working capital more than offset higher tax payments and expenses, which included Change Program costs.

  • Free cash flow increased due to higher cash flows from operations and a dividend of $51 million paid by LSEG in the second quarter.

Highlights by Customer Segment - Three Months Ended June 30

(Millions of U.S. dollars, except for adjusted EBITDA margins)

(unaudited)



Three Months Ended







June 30,


Change



2021

2020


Total

Constant 
Currency

Organic(1) 

Revenues








  Legal Professionals


$673

$620


9%

7%

6%

  Corporates


348

329


6%

4%

4%

  Tax & Accounting Professionals


197

168


17%

15%

15%

"Big 3" Segments Combined


1,218

1,117


9%

7%

7%

   Reuters News


168

155


9%

6%

6%

   Global Print


147

134


9%

6%

6%

   Eliminations/Rounding


(1)

(1)





Revenues


$1,532

$1,405


9%

7%

7%









Adjusted EBITDA 








  Legal Professionals


$285

$254


12%

10%


  Corporates


130

118


10%

9%


  Tax & Accounting Professionals


72

54


32%

32%


"Big 3" Segments Combined


487

426


14%

13%


  Reuters News


35

25


45%

66%


  Global Print


56

54


2%

-1%


  Corporate costs


(76)

(26)


n/a

n/a


Adjusted EBITDA


$502

$479


5%

5%










Adjusted EBITDA Margin 








  Legal Professionals


42.3%

40.9%


140bp

140bp


  Corporates


37.2%

35.9%


130bp

160bp


  Tax & Accounting Professionals


36.2%

31.9%


430bp

450bp


"Big 3" Segments Combined


39.9%

38.1%


180bp

190bp


  Reuters News


20.8%

15.6%


520bp

820bp


  Global Print


37.9%

40.5%


-260bp

-280bp


  Corporate costs


n/a

n/a


n/a 

n/a


Adjusted EBITDA margin


32.7%

34.1%


-140bp

-70bp


























n/a: not applicable

(1) Computed for revenue growth only.
























Unless otherwise noted, all revenue growth comparisons by customer segment in this news release are at constant currency (or exclude the impact of foreign currency) as Thomson Reuters believes this provides the best basis to measure their performance.

Legal Professionals

Revenues increased 7% (6% organic) to $673 million.

  • Recurring revenues grew 6% (93% of total, all organic), primarily due to strong performances from Practical Law, Westlaw Edge and the Government business as well as strong contributions from FindLaw, and the company's Canada, Europe and Asia businesses, each of which grew mid to upper single digits in the quarter.
  • Transactions revenues grew 14% (7% of total, all organic), primarily due to the Government business.

Adjusted EBITDA increased 12% to $285 million.

  • The margin increased to 42.3% from 40.9%, primarily due to higher revenues.

Corporates

Revenues increased 4% (all organic) to $348 million, primarily due to strong recurring revenue growth, including strong growth from legal solutions and the company's Latin America and Asia businesses.

  • Recurring revenues grew 5% (86% of total, all organic).
  • Transactions revenues grew 1% (14% of total, all organic), primarily related to increasing demand for solutions provided by the Indirect Tax business.

Adjusted EBITDA increased 10% to $130 million.

  • The margin increased to 37.2% from 35.9%, primarily due to higher revenues.

Tax & Accounting Professionals

Revenues increased 15% (all organic) to $197 million, reflecting transactions revenue growth of 43% related to the 2021 extension of the U.S. federal tax filing deadline. Additionally, revenue growth benefited from a similar shift in 2020 when transactions revenues moved from the second quarter to the third quarter after the U.S. federal tax filing deadline was extended from April to July. Normalizing for the shift in the U.S. federal tax filing deadline, organic revenues grew 10%.

  • Recurring revenues grew 9% (76% of total, all organic), including strong growth from the company's Latin American businesses.
  • Transactions revenues grew 43% (24% of total, all organic), primarily due to shifts in timing of Pay-Per-Return tax filings and audit products.

Adjusted EBITDA increased 32% to $72 million.

  • The margin increased to 36.2% from 31.9%, primarily due to higher revenues.
  • The Tax & Accounting Professionals segment is the company's most seasonal business with approximately 60% of full-year revenues typically generated in the first and fourth quarters. As a result, the margin performance of this segment has been generally higher in the first and fourth quarters as costs are typically incurred in a more linear fashion throughout the year.

Reuters News

Revenues of $168 million increased 6%, all organic, primarily due to the segment's professional business, which had strong growth from Reuters Events, whose performance was negatively impacted by COVID-19 in 2020.

  • Reuters Events continues to hold all events virtually and continues to assess when in-person events can resume based on local health guidelines and feedback from customers.

Adjusted EBITDA increased 45% to $35 million, primarily due to revenue growth.

Global Print

Revenues increased 6% to $147 million, driven by higher third-party revenues for printing services and an increase in shipments, reflecting a gradual return to office by large and mid-sized law firms. The quarter's performance also reflected a favorable comparison to the second quarter of 2020 when shipments were delayed at the beginning of the COVID-19 pandemic.

  • Global Print's third-quarter revenues are forecast to decline between 5% and 8%.
  • Global Print's full-year 2021 revenues are forecast to decline between 4% and 7%.

Adjusted EBITDA increased 2% to $56 million.

  • The margin decreased to 37.9% from 40.5% due to higher costs.

Corporate Costs

Corporate costs at the adjusted EBITDA level were $76 million, which included $41 million of Change Program costs, compared to $26 million of Corporate costs in the prior-year period. Additional information regarding the Change Program is provided below.

Consolidated Financial Highlights - Six Months Ended June 30

Six Months Ended June 30,

(Millions of U.S. dollars, except for adjusted EBITDA margin and EPS)

(unaudited)

IFRS Financial Measures(1)

2021

2020

Change

Change at
Constant
Currency

Revenues

$3,112

$2,925

6%


Operating profit

$703

$655

7%


Diluted earnings per share (EPS)

$12.28

$0.64

n/m


Cash flow from operations

$842

$598

41%


Non-IFRS Financial Measures(1)





Revenues

$3,112

$2,925

6%

5%

Adjusted EBITDA

$1,060

$959

11%

10%

Adjusted EBITDA margin

34.1%

32.8%

130bp

160bp

Adjusted EPS

$1.06

$0.92

15%

15%

Free cash flow

$618

$340

82%



(1)     
In addition to results reported in accordance with IFRS, the company uses certain non-IFRS financial measures as supplemental indicators of its operating performance and financial position. These and other non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in the tables appended to this news release.


n/m: not meaningful

Revenues increased 6% due to growth in recurring revenues and a 1% favorable impact from foreign currency.

  • Organic revenues increased 5%, driven by 4% growth in recurring revenues, which comprised 79% of total revenues, and higher transactions revenues.
  • The company's "Big 3" segments, which collectively comprised 80% of total revenues, reported organic revenue growth of 6%.

Operating profit increased 7% as higher revenues more than offset higher costs, which included Change Program costs.

  • Adjusted EBITDA increased 11% reflecting the same factors that impacted operating profit. The related margin increased to 34.1% from 32.8% in the prior-year period. Adjusted EBITDA margin was negatively impacted by 160bp due to Change Program costs.

Diluted EPS increased to $12.28 per share from $0.64 per share in the prior-year period due to the gain on the sale of Refinitiv to LSEG in January 2021.

  • Adjusted EPS, which excludes the gain on the sale of Refinitiv, as well as other adjustments, increased to $1.06 per share from $0.92 per share in the prior-year period, primarily due to higher adjusted EBITDA.

Cash flow from operations increased as higher revenues and favorable movements in working capital (including lower annual incentive bonus payments, which were due to the impact of COVID-19 in 2020) more than offset higher tax payments and expenses, which included Change Program costs.

  • Free cash flow increased due to higher cash flows from operations and the dividend paid by LSEG previously noted.

Highlights by Customer Segment - Six Months Ended June 30

(Millions of U.S. dollars, except for adjusted EBITDA margins)

(unaudited)



Six Months Ended







June 30,  


Change



2021

2020


Total

Constant
Currency

 

Organic(1) 

Revenues








  Legal Professionals


$1,341

$1,246


8%

6%

6%

  Corporates


732

696


5%

4%

4%

  Tax & Accounting Professionals


422

386


9%

9%

9%

"Big 3" Segments Combined


2,495

2,328


7%

6%

6%

   Reuters News


328

310


6%

4%

4%

   Global Print


290

289


0%

-2%

-2%

   Eliminations/Rounding


(1)

(2)





Revenues


$3,112

$2,925


6%

5%

5%









Adjusted EBITDA 








  Legal Professionals


$564

$484


17%

14%


  Corporates


276

235


17%

17%


  Tax & Accounting Professionals


170

138


23%

23%


"Big 3" Segments Combined


1,010

857


18%

16%


  Reuters News


63

44


45%

65%


  Global Print


113

117


-4%

-6%


  Corporate costs


(126)

(59)


n/a

n/a


Adjusted EBITDA


$1,060

$959


11%

10%










Adjusted EBITDA Margin 








  Legal Professionals


42.1%

38.8%


330bp

300bp


  Corporates


37.7%

33.8%


390bp

410bp


  Tax & Accounting Professionals


40.2%

35.7%


450bp

440bp


"Big 3" Segments Combined


40.5%

36.8%


370bp

350bp


  Reuters News


19.2%

14.1%


510bp

780bp


  Global Print


38.9%

40.5%


-160bp

-190bp


  Corporate costs


n/a

n/a


n/a 

n/a 


Adjusted EBITDA margin


34.1%

32.8%


130bp

160bp










n/a: not applicable

(1) Computed for revenue growth only.
























Thomson Reuters Change Program and Outlook

In February 2021, the company announced a two-year Change Program to transition from a holding company to an operating company, and from a content provider to a content-driven technology company. The program is expected to take 24 months (2021-2022) to largely complete and is projected to require an investment of between $500 million and $600 million during the course of that time. The company's 2021, 2022 and 2023 outlook is appended to this release.

The company's outlook for 2021, 2022 and 2023 incorporates the forecasted impacts associated with the Change Program, assumes constant currency rates, and excludes the impact of any future acquisitions or dispositions that may occur during those periods. Thomson Reuters believes that this type of guidance provides useful insight into the performance of its businesses.

While the company's second-quarter 2021 performance provides it with increasing confidence about its outlook, the global economy continues to experience substantial disruption due to concerns regarding resurgences and new strains of COVID-19, as well as from the measures intended to mitigate its impact. Any worsening of the global economic or business environment could impact the company's ability to achieve its outlook.

Today, the company provided an outlook for the third quarter of 2021 and updated its full-year outlook for 2021, which are reflected in the table below. The company also reaffirmed its outlook for 2022 and 2023.

Third-Quarter 2021 Outlook

  • Total company revenues and total organic revenues are expected to increase between 3.5% and 4.0%.
  • "Big 3" total revenue growth and organic revenue growth are forecast to range between 5.0% and 5.5%.
  • Tax & Accounting Professionals revenue growth is forecast to increase low single digits.
  • Reuters News revenues are expected to increase between 2.0% and 3.0%.
  • Global Print revenues are expected to decline between 5.0% and 8.0%.

Third-Quarter 2021 Outlook and update to Full-Year 2021 Outlook

Total Thomson Reuters

Q3 2021
Outlook

Original

FY 2021

Outlook

(February 23, 2021)

FY 2021

Outlook

Update

(May 4, 2021)

FY 2021

Outlook

Update

(August 5, 2021)

Total Revenue Growth

3.5% - 4.0%

3.0% - 4.0%

3.5% - 4.0%

4.0% - 4.5%

Organic Revenue Growth

3.5% - 4.0%

3.0% - 4.0%

3.5% - 4.0%

4.0% - 4.5%

Adjusted EBITDA Margin

-

30% - 31%

Unchanged

31% - 32%

Corporate Costs

     Core Corporate Costs

     Change Program Operating Expenses

-

$305 - $340 million

$130 - $140 million

$175 - $200 million

Unchanged

Unchanged

Free Cash Flow

-

$1.0 - $1.1 billion

Unchanged

$1.1 - $1.2 billion

Capital Expenditures - % of Revenue

     Change Program Capital Expenditures

-

9.0% - 9.5%

$125 - $150 million

Unchanged

Unchanged

Depreciation & Amortization of

Computer Software

-

$650 - $675 million

Unchanged

Unchanged

Interest Expense (P&L)

-

$190 - $210 million

Unchanged

Unchanged

Effective Tax Rate on Adjusted Earnings

-

16% - 18%

Unchanged

Unchanged

Big 3 Segments

(Legal Professionals, Corporates and Tax & Accounting Professionals)

Q3 2021

Outlook

Original

FY 2021

Outlook

(February 23, 2021)

FY 2021

Outlook

Update

(May 4, 2021)

FY 2021

Outlook

Update

(August 5, 2021)

Total Revenue Growth

5.0% - 5.5%

4.5% - 5.5%

5.0% - 5.5%

5.5% - 6.0%

Organic Revenue Growth

5.0% - 5.5%

4.5% - 5.5%

5.0% - 5.5%

5.5% - 6.0%

Adjusted EBITDA Margin

-

38% - 39%

Unchanged

~ 39%

The information in this section is forward-looking. Actual results, which include the impact of currency and future acquisitions and dispositions completed during 2021, 2022 and 2023, may differ materially from the company's outlook. Some of the forward-looking financial measures in the outlook above are provided on a non-IFRS basis. See the section below entitled "Non-IFRS Financial Measures" for more information. The information in this section should also be read in conjunction with the section below entitled "Special Note Regarding Forward-Looking Statements, Material Risks and Material Assumptions."

Share Repurchases - New $1.2 Billion Buyback Program and Amended Normal Course Issuer Bid

Thomson Reuters also announced today that it plans to buy back up to $1.2 billion of its common shares. The new buyback program is in addition to the $200 million repurchase program that was completed earlier this year.

Shares will be repurchased for the new buyback program under an amended normal course issuer bid (NCIB). The amended NCIB, which is subject to acceptance by the Toronto Stock Exchange (TSX), is expected to become effective on or about August 10, 2021. The amended NCIB will increase the maximum number of common shares that may be repurchased by an additional 15 million. Under the amended NCIB, up to 20 million common shares (representing approximately 4% of the company's 497,117,528 issued and outstanding shares as of December 24, 2020) may be repurchased between January 4, 2021 and January 3, 2022. The NCIB, as originally approved in December 2020, contemplated the repurchase of up to 5 million common shares. Under the current NCIB, Thomson Reuters repurchased 2,455,807 common shares in the first quarter of 2021 for a total cost of approximately $200 million, representing an average price of $81.45 per share.

Under the amended NCIB, shares may be repurchased in open market transactions on the TSX, the NYSE and/or other exchanges and alternative trading systems, if eligible, or by such other means as may be permitted by the TSX and/or NYSE or under applicable law, including private agreement purchases if Thomson Reuters receives an issuer bid exemption order in the future from applicable securities regulatory authorities in Canada for such purchases. The price that Thomson Reuters will pay for common shares in open market transactions will be the market price at the time of purchase or such other price as may be permitted by the TSX. Any private agreement purchases made under an exemption order may be at a discount to the prevailing market price. In accordance with TSX rules, any daily repurchases (other than pursuant to a block purchase exception) on the TSX under the amended NCIB are limited to a maximum of 127,341 shares, which represents 25% of the average daily trading volume on the TSX of 509,367 for the six months ended November 30, 2020 (net of repurchases made by the company during that time period). Any shares that are repurchased are cancelled.

From time to time when Thomson Reuters does not possess material non-public information about itself or its securities, it may enter into a pre-defined plan with its broker to allow for the repurchase of shares at times when the company ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Any such plans entered into with the company's broker will be adopted in accordance with applicable Canadian securities laws and the requirements of Rule 10b5-1 under the U.S. Securities Exchange Act of 1934, as amended.

Decisions regarding any future repurchases will depend on factors, such as market conditions, share price and other opportunities to invest capital for growth. Thomson Reuters may elect to suspend or discontinue share repurchases at any time, in accordance with applicable laws.

Dividends

In February 2021, the company announced its Board of Directors approved a $0.10 per share annualized increase in the dividend to $1.62 per common share, representing the 28th consecutive year of dividend increases. A quarterly dividend of $0.405 per share is payable on September 15, 2021 to common shareholders of record as of August 19, 2021.

London Stock Exchange Group (LSEG) Ownership Interest

In January 2021, Thomson Reuters and private equity funds affiliated with Blackstone sold Refinitiv to LSEG in an all-share transaction. Thomson Reuters indirectly owns LSEG shares through an entity that it jointly owns with Blackstone's consortium and a group of current and former Refinitiv senior management. 

As of August 4, 2021, Thomson Reuters indirectly owned approximately 72.4 million LSEG shares which had a market value of approximately $7.5 billion based on LSEG's closing share price on that day. Based on Thomson Reuters' ownership interest in LSEG, it expects to receive dividends of approximately $75 million in 2021.

In March 2021, as permitted under a lock-up exception, Thomson Reuters sold approximately 10.1 million LSEG shares for pre-tax net proceeds of $994 million. Over the course of 2021, Thomson Reuters will pay approximately $225 million of tax on the sale of these shares and will use the after-tax proceeds to pay the approximately $640 million of taxes that became payable when the Refinitiv sale closed. In the six-month period ended June 30, 2021, the company paid $444 million of taxes related to these transactions.

Social Impact/ESG

In the second quarter of 2021, Thomson Reuters issued its 2020 Social Impact Report, which focuses on the company's Environmental, Social and Governance (ESG) efforts. A copy of the report is available on the company's Social Impact website.  

Thomson Reuters

Thomson Reuters is a leading provider of business information services. Our products include highly specialized information-enabled software and tools for legal, tax, accounting and compliance professionals combined with the world's most global news service – Reuters. For more information on Thomson Reuters, visit tr.com and for the latest world news, reuters.com. 

NON-IFRS FINANCIAL MEASURES

Thomson Reuters prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).

This news release includes certain non-IFRS financial measures, such as adjusted EBITDA and the related margin (other than at the customer segment level), net debt to adjusted EBITDA leverage ratio, free cash flow, adjusted EPS, selected measures excluding the impact of foreign currency, and changes in revenues computed on an organic basis. Thomson Reuters uses these non-IFRS financial measures as supplemental indicators of its operating performance and financial position. These measures do not have any standardized meanings prescribed by IFRS and therefore are unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in the appended tables.

The company's outlook contains various non-IFRS financial measures. The company believes that providing reconciliations of forward-looking non-IFRS financial measures in its outlook would be potentially misleading and not practical due to the difficulty of projecting items that are not reflective of ongoing operations in any future period. The magnitude of these items may be significant. Consequently, for outlook purposes only, the company is unable to reconcile these non-IFRS measures to the most comparable IFRS measures because it cannot predict, with reasonable certainty, the 2021, 2022 and 2023 impacts of changes in foreign exchange rates which impact (i) the translation of its results reported at average foreign currency rates for the year, and (ii) other finance income or expense related to intercompany financing arrangements. Additionally, the company cannot reasonably predict (i) its share of post-tax earnings (losses) in equity method investments, which is subject to changes in the stock price of LSEG or (ii) the occurrence or amount of other operating gains and losses that generally arise from business transactions that the company does not currently anticipate.

ROUNDING

Other than EPS, the company reports its results in millions of U.S. dollars, but computes percentage changes and margins using whole dollars to be more precise. As a result, percentages and margins calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL RISKS AND MATERIAL ASSUMPTIONS

Certain statements in this news release, including, but not limited to, statements in Mr. Hasker's comments, the "Thomson Reuters Change Program and Outlook" section, and the company's expectations regarding Global Print and share repurchases, are forward-looking. The words "will", "expect", "believe", "target", "estimate", "could", "should", "intend", "predict", "project" and similar expressions identify forward-looking statements. While the company believes that it has a reasonable basis for making forward-looking statements in this news release, they are not a guarantee of future performance or outcomes and there is no assurance that any of the other events described in any forward-looking statement will materialize. Forward-looking statements, including those related to the COVID-19 pandemic, are subject to a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from current expectations. Many of these risks, uncertainties and assumptions are beyond the company's control and the effects of them can be difficult to predict. In particular, the full extent of the impact of the COVID-19 pandemic on the company's business, operations and financial results will depend on numerous evolving factors that it may not be able to accurately predict.

Some of the material risk factors that could cause actual results or events to differ materially from those expressed in or implied by forward-looking statements in this news release include, but are not limited to, those discussed on pages 16-30 in the "Risk Factors" section of the company's annual report for the year ended December 31, 2020. These and other risk factors are discussed in materials that Thomson Reuters from time to time files with, or furnishes to, the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission (SEC). Thomson Reuters annual and quarterly reports are also available in the "Investor Relations" section of tr.com.

The company's business outlook is based on information currently available to the company and is based on various external and internal assumptions made by the company in light of its experience and perception of historical trends, current conditions and expected future developments (including those related to the COVID-19 pandemic), as well as other factors that the company believes are appropriate under the circumstances. Material assumptions and material risks may cause actual performance to differ from the company's expectations underlying its business outlook, which reflects the global economic crisis caused by the COVID-19 pandemic. For a discussion of material assumptions and material risks related to the company's outlook, please see pages 21-22 of the company's first-quarter management's discussion and analysis (MD&A) for the period ended March 31, 2021. Material assumptions and material risks related to the company's outlook will also be included in the company's second-quarter MD&A for the period ended June 30, 2021, expected to be filed shortly. The company's MD&A is filed with, or furnished to, the Canadian securities regulatory authorities and the U.S. SEC and is also available in the "Investor Relations" section of tr.com.

The company has provided an updated Outlook for the purpose of presenting information about current expectations for the periods presented. This information may not be appropriate for other purposes. You are cautioned not to place undue reliance on forward-looking statements which reflect expectations only as of the date of this news release.

Except as may be required by applicable law, Thomson Reuters disclaims any obligation to update or revise any forward-looking statements, including those related to the COVID-19 pandemic.

CONTACTS

MEDIA

Melissa Cassar

Head of Commercial Communications & Corporate Affairs

+1 437 388 3619

melissa.cassar@tr.com

INVESTORS

Frank J. Golden

Head of Investor Relations

+1 332 219 1111

frank.golden@tr.com

Thomson Reuters will webcast a discussion of its second-quarter 2021 results and its business outlook today beginning at 9:00 a.m. Eastern Daylight Time (EDT). You can access the webcast by visiting ir.tr.com. An archive of the webcast will be available following the presentation.

Thomson Reuters Corporation
2021 - 2023 Outlook

Total Thomson Reuters

2021

Outlook

Updated

2022

Outlook

Reaffirmed

2023

Outlook

Reaffirmed

Total Revenue Growth

4.0% - 4.5%

4.0% - 5.0%

5.0% - 6.0%

Organic Revenue Growth

4.0% - 4.5%

4.0% - 5.0%

5.0% - 6.0%

Adjusted EBITDA Margin

31% - 32%

34% - 35%

38% – 40%

Corporate Costs

     Core Corporate Costs

     Change Program Operating Expenses

$305 - $340 million

$130 - $140 million

$175 - $200 million

$245 - $280 million

$120 - $130 million

$125 - $150 million

$110 - $120 million

$110 - $120 million

$0

Free Cash Flow

$1.1 - $1.2 billion

$1.2 - $1.3 billion

$1.8 - $2.0 billion

Capital Expenditures - % of Revenue

     Change Program Capital Expenditures

9.0% - 9.5%

$125 - $150 million

7.5% - 8.0%

$75 - $100 million

6.0% - 6.5%

$0

Depreciation & Amortization of

Computer Software

$650 - $675 million

$620 - $645 million

$580 - $605 million

Interest Expense (P&L)

$190 - $210 million

$190 - $210 million

$190 - $210 million

Effective Tax Rate on Adjusted Earnings

16% - 18%

n/a

n/a

Big 3 Segments

(Legal Professionals, Corporates and Tax & Accounting Professionals)

2021

Outlook

Updated

2022

Outlook

Reaffirmed

2023

Outlook

Reaffirmed

Total Revenue Growth

5.5% - 6.0%

5.5% - 6.5%

6.0% - 7.0%

Organic Revenue Growth

5.5% - 6.0%

5.5% - 6.5%

6.0% - 7.0%

Adjusted EBITDA Margin

~ 39%

41% - 42%

43% - 45%

The information in this section is forward-looking. Actual results, which include the impact of currency and future acquisitions and dispositions completed during 2021, 2022 and 2023, may differ materially from the company's outlook. Some of the forward-looking financial measures in the outlook above are provided on a non-IFRS basis. See the section above entitled "Non-IFRS Financial Measures" for more information. The information in this section should also be read in conjunction with the section above entitled "Special Note Regarding Forward-Looking Statements, Material Risks and Material Assumptions."

Thomson Reuters Corporation

Consolidated Income Statement

(millions of U.S. dollars, except per share data)

(unaudited)



Three Months Ended


Six Months Ended


June 30,


June 30,


2021

2020


2021

2020

CONTINUING OPERATIONS






Revenues

$1,532

$1,405


$3,112

$2,925

Operating expenses

(1,036)

(929)


(2,054)

(1,946)

Depreciation

(42)

(43)


(88)

(83)

Amortization of computer software

(122)

(118)


(237)

(229)

Amortization of other identifiable intangible assets

(30)

(30)


(61)

(60)

Other operating gains, net

14

80


31

48

Operating profit

316

365


703

655

Finance costs, net:






     Net interest expense

(49)

(52)


(100)

(97)

     Other finance income (costs)

2

(13)


(4)

34

Income before tax and equity method investments

269

300


599

592

Share of post-tax earnings (losses) in equity method investments

1,092

(153)


7,389

(207)

Tax expense

(289)

(16)


(1,883)

(63)

Earnings from continuing operations

1,072

131


6,105

322

Loss from discontinued operations, net of tax

(4)

(5)


(1)

(3)

Net earnings

$1,068

$126


$6,104

$319

Earnings attributable to common shareholders

$1,068

$126


$6,104

$319







Earnings (loss) per share:






Basic earnings per share:






   From continuing operations

$2.16

$0.26


$12.31

$0.65

   From discontinued operations

(0.01)

(0.01)


(0.01)

(0.01)

Basic earnings per share

$2.15

$0.25


$12.30

$0.64







Diluted earnings per share:






   From continuing operations

$2.16

$0.26


$12.28

$0.65

   From discontinued operations

(0.01)

(0.01)


-

(0.01)

Diluted earnings per share

$2.15

$0.25


$12.28

$0.64







Basic weighted-average common shares

496,098,238

496,317,115


496,016,467

496,261,070

Diluted weighted-average common shares

497,259,072

497,580,339


497,109,791

497,579,131








 

Thomson Reuters Corporation

Consolidated Statement of Financial Position

(millions of U.S. dollars)

(unaudited)



June 30,  


December 31,

2021


2020

Assets




Cash and cash equivalents

$2,342


$1,787

Trade and other receivables

1,041


1,151

Other financial assets

77


612

Prepaid expenses and other current assets

425


425

Current assets

3,885


3,975





Property and equipment, net

482


545

Computer software, net

819


830

Other identifiable intangible assets, net

3,368


3,427

Goodwill

5,992


5,976

Equity method investments

7,913


1,136

Other non-current assets

929


788

Deferred tax

1,173


1,204

Total assets

$24,561


$17,881





Liabilities and equity




Liabilities




Payables, accruals and provisions

$1,023


$1,159

Current tax liabilities

663


251

Deferred revenue

923


866

Other financial liabilities

158


376

Current liabilities 

2,767


2,652





Long-term indebtedness

3,806


3,772

Provisions and other non-current liabilities

927


1,083

Deferred tax

1,284


394

Total liabilities

8,784


7,901





Equity




Capital

5,502


5,458

Retained earnings

11,010


5,211

Accumulated other comprehensive loss

(735)


(689)

Total equity

15,777


9,980

Total liabilities and equity

$24,561


$17,881

 

Thomson Reuters Corporation

Consolidated Statement of Cash Flow

(millions of U.S. dollars)

(unaudited)  



Three Months Ended
June 30,


Six Months Ended

June 30,


2021

2020


2021

2020

Cash provided by (used in):






Operating activities






Earnings from continuing operations

$1,072

$131


$6,105

$322

Adjustments for:






Depreciation

42

43


88

83

Amortization of computer software

122

118


237

229

Amortization of other identifiable intangible assets

30

30


61

60

Share of post-tax (earnings) losses in equity method investments 

(1,092)

153


(7,389)

207

Deferred tax

249

(34)


923

(37)

Other

33

(17)


63

(6)

Changes in working capital and other items 

15

(7)


800

(250)

Operating cash flows from continuing operations

471

417


888

608

Operating cash flows from discontinued operations

(9)

5


(46)

(10)

Net cash provided by operating activities

462

422


842

598







Investing activities






Acquisitions, net of cash acquired

-

2


(3)

(122)

Proceeds from disposals of businesses and investments

10

4


15

1

Dividend from sale of LSEG shares

-

-


994

-

Capital expenditures 

(113)

(145)


(233)

(287)

Proceeds from disposals of property and equipment

-

45


-

64

Other investing activities

52

1


53

2

Taxes paid on sale of Refinitiv and LSEG shares

(438)

-


(444)

-

Investing cash flows from continuing operations

(489)

(93)


382

(342)

Investing cash flows from discontinued operations

-

-


(42)

-

Net cash (used in) provided by investing activities

(489)

(93)


340

(342)







Financing activities






Proceeds from debt

-

999


-

2,019

Repayments of debt

-

(1,000)


-

(1,645)

Net borrowings under short-term loan facilities

-

-


-

118

Payments of lease principal

(22)

(18)


(43)

(36)

Repurchases of common shares

-

-


(200)

(200)

Dividends paid on preference shares

-

-


(1)

(1)

Dividends paid on common shares

(194)

(182)


(388)

(364)

Other financing activities

-

(4)


5

(16)

Net cash used in financing activities

(216)

(205)


(627)

(125)

(Decrease) increase in cash and bank overdrafts

(243)

124


555

131

Translation adjustments

1

-


-

(10)

Cash and bank overdrafts at beginning of period

2,584

822


1,787

825

Cash and bank overdrafts at end of period

$2,342

$946


$2,342

$946

Cash and bank overdrafts at end of period comprised of:






Cash and cash equivalents

$2,342

$946


$2,342

$946

 

Thomson Reuters Corporation

Reconciliation of Earnings from Continuing Operations to Adjusted EBITDA(1)

(millions of U.S. dollars, except for margins)

(unaudited)



Three Months Ended


Six Months Ended

June 30,


June 30,


2021

2020


2021

2020







Earnings from continuing operations

$1,072

$131


$6,105

$322

Adjustments to remove:






Tax expense

289

16


1,883

63

Other finance (income) costs

(2)

13


4

(34)

Net interest expense

49

52


100

97

Amortization of other identifiable intangible assets

30

30


61

60

Amortization of computer software

122

118


237

229

Depreciation

42

43


88

83

EBITDA

$1,602

$403


$8,478

$820

Adjustments to remove:






Share of post-tax (earnings) losses in equity method investments

(1,092)

153


(7,389)

207

Other operating gains, net

(14)

(80)


(31)

(48)

Fair value adjustments(4)

6

3


2

(20)

Adjusted EBITDA

$502

$479


$1,060

$959

Adjusted EBITDA margin(1)

32.7%

34.1%


34.1%

32.8%







 

Thomson Reuters Corporation

Reconciliation of Net Earnings to Adjusted Earnings(2)

Reconciliation of Total Change in Adjusted EPS(2) to Change in Constant Currency(5)

(millions of U.S. dollars, except for share and per share data)

(unaudited)



Three Months Ended

June 30,


Six Months Ended
June 30,




2021 

2020

Change


2021 

2020

Change

Net earnings

$1,068

$126



$6,104

$319


Adjustments to remove:








Fair value adjustments (4)

6

3



2

(20)


Amortization of other identifiable intangible assets

30

30



61

60


Other operating gains, net

(14)

(80)



(31)

(48)


Other finance (income) costs

(2)

13



4

(34)


Share of post-tax (earnings) losses in equity method

   investments

(1,092)

153



(7,389)

207


Tax on above items

255

(28)



1,790

(59)


Tax items impacting comparability

(12)

9



(11)

39


Loss from discontinued operations, net of tax

4

5



1

3


Interim period effective tax rate normalization(3)

(3)

(10)



(2)

(6)


Dividends declared on preference shares

-

-



(1)

(1)


Adjusted earnings (2)

$240

$221



$528

$460


Adjusted EPS (2)

$0.48

$0.44

9%


$1.06

$0.92

15%

Foreign currency(5)



0%




0%

Constant currency(5)



9%




15%









Diluted weighted-average common shares (millions)

497.3

497.6



497.1

497.6


Refer to page 24 for footnotes.

Thomson Reuters Corporation

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow(6)

(millions of U.S. dollars)

(unaudited)



Three Months Ended


Six Months Ended

June 30,


June 30,


2021

2020


2021

2020

Net cash provided by operating activities

$462

$422


$842

$598

Capital expenditures

(113)

(145)


(233)

(287)

Proceeds from disposals of property and equipment

-

45


-

64

Other investing activities

52

1


53

2

Payments of lease principal

(22)

(18)


(43)

(36)

Dividends paid on preference shares

-

-


(1)

(1)

Free cash flow

$379

$305


$618

$340








 

Thomson Reuters Corporation

Reconciliation of Net Debt and Leverage Ratio of Net Debt to Adjusted EBITDA(8)

(millions of U.S. dollars)

(unaudited)




June 30,
2021

Long-term indebtedness


$3,806

   Total debt


3,806

Swaps


(125)

Total debt after swaps


3,681

Remove fair value adjustments for hedges


(7)

Total debt after currency arrangements


3,674

Remove transaction costs, premiums or discounts included in the carrying value of debt


36

Add: lease liabilities (current and non-current)


271

Less: cash and cash equivalents


(2,342)

Net debt (8)


$1,639




Adjusted EBITDA(1)*


$2,076

Net Debt / Adjusted EBITDA(8)*


0.8:1

* The company's target leverage ratio of 2.5:1 is a non-IFRS measure. For purposes of this calculation, adjusted EBITDA is computed on a rolling twelve-month basis and includes adjusted EBITDA of $502 million, $558 million, $525 million and $491 million for the three months ended June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively. Refer to the tables appended to this news release, the company's 2020 annual report and the company's MD&A for the three months ended March 31, 2021 and September 30, 2020, for additional information regarding the calculation of adjusted EBITDA in each of these periods. 

Refer to page 24 for footnotes.

Thomson Reuters Corporation

Reconciliation of Changes in Revenues to Changes in Revenues on a Constant Currency(5) and Organic Basis(7)

(millions of U.S. dollars)

(unaudited)




Three Months Ended





June 30,


Change



2021

2020


Total

 

Foreign
Currency

SUBTOTAL
Constant
Currency(5)

Acquisitions/
(Divestitures)

Organic(7)

Total Revenues










  Legal Professionals


$673

$620


9%

2%

7%

0%

6%

  Corporates


348

329


6%

1%

4%

0%

4%

  Tax & Accounting Professionals


197

168


17%

1%

15%

0%

15%

"Big 3" Segments Combined


1,218

1,117


9%

2%

7%

0%

7%

  Reuters News


168

155


9%

2%

6%

0%

6%

  Global Print


147

134


9%

3%

6%

0%

6%

  Eliminations/Rounding


(1)

(1)







Revenues


$1,532

$1,405


9%

2%

7%

0%

7%











Recurring Revenues 










  Legal Professionals


$626

$580


8%

2%

6%

0%

6%

  Corporates


300

282


6%

2%

5%

0%

5%

  Tax & Accounting Professionals


150

136


10%

1%

9%

0%

9%

"Big 3" Segments Combined


1,076

998


8%

2%

6%

0%

6%

  Reuters News


144

141


3%

2%

1%

0%

1%

Total Recurring Revenues


$1,220

$1,139


7%

2%

5%

0%

5%











Transactions Revenues










  Legal Professionals


$47

$40


18%

4%

14%

0%

14%

  Corporates


48

47


2%

1%

1%

0%

1%

  Tax & Accounting Professionals


47

32


45%

2%

43%

0%

43%

"Big 3" Segments Combined


142

119


19%

2%

17%

0%

17%

  Reuters News


24

14


72%

9%

62%

2%

61%

Total Transactions Revenues


$166

$133


25%

3%

22%

0%

22%











Growth percentages are computed using whole dollars. As a result, percentages calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.

Refer to page 24 for footnotes.

Thomson Reuters Corporation

Reconciliation of Changes in Revenues to Changes in Revenues on a Constant Currency(5) and Organic Basis(7)

(millions of U.S. dollars)

(unaudited)




Six Months Ended





June 30,


Change



2021

2020


Total

 

Foreign
Currency

SUBTOTAL
Co
nstant
Currency(5)

 

Acquisitions/(Divestitures)

 

 

Organic(7)

Total Revenues










  Legal Professionals


$1,341

$1,246


8%

2%

6%

0%

6%

  Corporates


732

696


5%

1%

4%

0%

4%

  Tax & Accounting Professionals


422

386


9%

0%

9%

0%

9%

"Big 3" Segments Combined


2,495

2,328


7%

1%

6%

0%

6%

  Reuters News


328

310


6%

2%

4%

0%

4%

  Global Print


290

289


0%

2%

-2%

0%

-2%

  Eliminations/Rounding


(1)

(2)







Revenues


$3,112

$2,925


6%

1%

5%

0%

5%











Recurring Revenues 










  Legal Professionals


$1,247

$1,167


7%

2%

5%

0%

5%

  Corporates


595

563


6%

1%

5%

0%

5%

  Tax & Accounting Professionals


310

294


6%

-1%

6%

0%

6%

"Big 3" Segments Combined


2,152

2,024


6%

1%

5%

0%

5%

  Reuters News


288

283


2%

2%

0%

0%

0%

Total Recurring Revenues


$2,440

$2,307


6%

1%

5%

0%

4%











Transactions Revenues










  Legal Professionals


$94

$79


19%

3%

16%

0%

16%

  Corporates


137

133


3%

0%

3%

0%

3%

  Tax & Accounting Professionals


112

92


20%

1%

19%

0%

19%

"Big 3" Segments Combined


343

304


13%

1%

11%

0%

11%

  Reuters News


40

27


48%

5%

43%

1%

42%

Total Transactions Revenues


$383

$331


15%

2%

14%

0%

14%











Growth percentages are computed using whole dollars. As a result, percentages calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.

Refer to page 24 for footnotes.

Thomson Reuters Corporation

Reconciliation of Changes in Adjusted EBITDA(1) to Changes on a Constant Currency Basis(5)

(millions of U.S. dollars)

(unaudited)




Three Months Ended





June 30,


Change



2021

2020


Total

Foreign

Currency

Constant

Currency(5)

Adjusted EBITDA 








  Legal Professionals


$285

$254


12%

2%

10%

  Corporates


130

118


10%

1%

9%

  Tax & Accounting Professionals


72

54


32%

1%

32%

"Big 3" Segments Combined


487

426


14%

2%

13%

  Reuters News


35

25


45%

-21%

66%

  Global Print


56

54


2%

3%

-1%

  Corporate costs


(76)

(26)


n/a

n/a

n/a

Adjusted EBITDA


$502

$479


5%

0%

5%









Adjusted EBITDA Margin 








  Legal Professionals


42.3%

40.9%


140bp

0bp

140bp

  Corporates


37.2%

35.9%


130bp

-30bp

160bp

  Tax & Accounting Professionals


36.2%

31.9%


430bp

-20bp

450bp

"Big 3" Segments Combined


39.9%

38.1%


180bp

-10bp

190bp

  Reuters News


20.8%

15.6%


520bp

-300bp

820bp

  Global Print


37.9%

40.5%


-260bp

20bp

-280bp

  Corporate costs


n/a

n/a


n/a 

n/a 

n/a 

Adjusted EBITDA margin


32.7%

34.1%


-140bp

-70bp

-70bp









n/a: not applicable

Growth percentages and margins are computed using whole dollars. As a result, percentages and margins calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.

Refer to page 24 for footnotes.

Thomson Reuters Corporation

Reconciliation of Changes in Adjusted EBITDA(1) to Changes on a Constant Currency Basis(5)

(millions of U.S. dollars)

(unaudited)





Six Months Ended





June 30,


Change



2021

2020


Total

Foreign

Currency

Constant

Currency(5)

Adjusted EBITDA 








  Legal Professionals


$564

$484


17%

3%

14%

  Corporates


276

235


17%

0%

17%

  Tax & Accounting Professionals


170

138


23%

0%

23%

"Big 3" Segments Combined


1,010

857


18%

2%

16%

  Reuters News


63

44


45%

-20%

65%

  Global Print


113

117


-4%

3%

-6%

  Corporate costs


(126)

(59)


n/a

n/a

n/a

Adjusted EBITDA


$1,060

$959


11%

1%

10%









Adjusted EBITDA Margin 








  Legal Professionals


42.1%

38.8%


330bp

30bp

300bp

  Corporates


37.7%

33.8%


390bp

-20bp

410bp

  Tax & Accounting Professionals


40.2%

35.7%


450bp

10bp

440bp

"Big 3" Segments Combined


40.5%

36.8%


370bp

20bp

350bp

  Reuters News


19.2%

14.1%


510bp

-270bp

780bp

  Global Print


38.9%

40.5%


-160bp

30bp

-190bp

  Corporate costs


n/a

n/a


n/a 

n/a 

n/a 

Adjusted EBITDA margin


34.1%

32.8%


130bp

-30bp

160bp









n/a: not applicable

Growth percentages and margins are computed using whole dollars. As a result, percentages and margins calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.

Refer to page 24 for footnotes.

Footnotes

(1)

Thomson Reuters defines adjusted EBITDA for its business segments as earnings or losses from continuing operations before tax expense or benefit, net interest expense, other finance costs or income, depreciation, amortization of software and other identifiable intangible assets, Thomson Reuters share of post-tax earnings or losses in equity method investments, other operating gains and losses, certain asset impairment charges, fair value adjustments and corporate related items. Consolidated adjusted EBITDA is comprised of adjusted EBITDA for its business segments and corporate costs. Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of revenues. Thomson Reuters uses adjusted EBITDA because it provides a consistent basis to evaluate operating profitability and performance trends by excluding items that the company does not consider to be controllable activities for this purpose. Adjusted EBITDA also represents a measure commonly reported and widely used by investors as a valuation metric. Additionally, this measure is used by Thomson Reuters and investors to assess a company's ability to incur and service debt.



(2)

Thomson Reuters defines adjusted earnings as net earnings or loss including dividends declared on preference shares but excluding the post-tax impacts of fair value adjustments, amortization of other identifiable intangible assets, other operating gains and losses, certain asset impairment charges, other finance costs or income, Thomson Reuters share of post-tax earnings or losses in equity method investments, discontinued operations and other items affecting comparability. Thomson Reuters calculates the post-tax amount of each item excluded from adjusted earnings based on the specific tax rules and tax rates associated with the nature and jurisdiction of each item. Adjusted EPS is calculated from adjusted earnings using diluted weighted-average shares and does not represent actual earnings or loss per share attributable to shareholders. Thomson Reuters uses adjusted earnings and adjusted EPS as they provide a more comparable basis to analyze earnings and they are also measures commonly used by shareholders to measure the company's performance.



(3)

Adjustment to reflect income taxes based on estimated full-year effective tax rate. Earnings or losses for interim periods under IFRS reflect income taxes based on the estimated effective tax rates of each of the jurisdictions in which Thomson Reuters operates. The non-IFRS adjustment reallocates estimated full-year income taxes between interim periods, but has no effect on full-year income taxes.



(4)

Fair value adjustments primarily represent gains or losses due to changes in foreign currency exchange rates on intercompany balances that arise in the ordinary course of business.



(5)

The changes in revenues, adjusted EBITDA and the related margins, and adjusted earnings per share before currency (at constant currency or excluding the effects of currency) are determined by converting the current and prior-year period's local currency equivalent using the same exchange rates.



(6)

Free cash flow is net cash provided by operating activities, proceeds from disposals of property and equipment, and other investing activities less capital expenditures, payments of lease principal and dividends paid on the company's preference shares. Thomson Reuters uses free cash flow as it helps assess the company's ability, over the long term, to create value for its shareholders as it represents cash available to repay debt, pay common dividends and fund share repurchases and new acquisitions.



(7)

Represents changes in revenues of our existing businesses at constant currency. The metric excludes the distortive impacts of acquisitions and dispositions from not owning the business in both comparable periods. Thomson Reuters uses organic growth because it provides further insight into the performance of its existing businesses by excluding distortive impacts and serves as a better measure of the company's ability to grow its business over the long term.



(8)

Net debt is total indebtedness (excluding the associated unamortized transaction costs and premiums or discounts) plus the currency related fair value of associated hedging instruments, and lease liabilities less cash and cash equivalents. For purposes of calculating the leverage ratio, net debt is divided by adjusted EBITDA for the previous twelve-month period ending with the current fiscal quarter.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/thomson-reuters-reports-second-quarter-2021-results-301349176.html

SOURCE Thomson Reuters

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