FactSet(FDS) - 2025 Q1 - Quarterly Report

Acquisition and Goodwill - The acquisition of Irwin was completed for a purchase price of $123.2 million, which includes contingent consideration of$12.7 million[81]. - Goodwill increased to $1.092 billion as of November 30, 2024, reflecting the acquisition of Irwin and foreign currency translations[86]. - The acquisition of Irwin is expected to enhance the company's capabilities in addressing the workflow needs of investor relations professionals[83]. - The company anticipates finalizing the purchase price allocation for Irwin within one year from the acquisition date[83]. Financial Performance - Revenues for the first quarter of fiscal 2025 were$568.7 million, representing a 4.9% increase from the prior year, driven by a 4.7% increase in organic revenues[170]. - The company reported income before income taxes of $179,739,000 for the three months ended November 30, 2024, compared to$175,196,000 for the same period in 2023, indicating a growth of approximately 1.4%[92]. - Net income for the three months ended November 30, 2024, was $150.0 million, a 1.0$3.95, an increase from $3.91 in the same period of 2023[140]. - Diluted EPS for the three months ended November 30, 2024, was$3.89, an increase of 1.3% from $3.84 in the prior year[191]. Cash Flow and Liquidity - Net cash provided by operating activities for the three months ended November 30, 2024, was$86.4 million, a decrease of $68.8 million compared to$155.1 million for the same period in 2023[249]. - The company generated free cash flow of $60.5 million during the three months ended November 30, 2024, a decrease of$78.2 million compared to $138.7 million for the same period in 2023[256]. - Cash and cash equivalents decreased to$289.2 million from $423.0 million as of August 31, 2024[224]. - As of November 30, 2024, the company had short-term liquidity requirements of$62.5 million related to the outstanding balance of the 2022 Term Facility due March 1, 2025[230]. Debt and Interest Rates - Total debt as of November 30, 2024, was $1,359,103,000, a slight decrease from$1,365,973,000 as of August 31, 2024[104]. - The company entered into a new interest rate swap agreement with a notional amount of $200 million, which will decline by$50 million quarterly, with a fixed interest rate of 5.145%[75]. - Interest expense on outstanding debt for the three months ended November 30, 2024, was $14.367 million, compared to$16.729 million for the same period in 2023, reflecting a decrease of approximately 8.1%[121]. - The company entered into a 2024 Swap Agreement to hedge a portion of its floating SOFR debt with a fixed interest rate of 5.145%, maturing on February 28, 2025[115]. Taxation - The provision for income taxes for the three months ended November 30, 2024, was $29,717,000, resulting in an effective tax rate of 16.5$88.0 million to stockholders in the form of share repurchases and dividends during the three months ended November 30, 2024[240]. - The company repurchased 104,475 shares for $48.8 million during the three months ended November 30, 2024[241]. - The Board of Directors approved a dividend of$1.04 per share for the first quarter of fiscal 2025, totaling $39.572 million, compared to$0.98 per share and $37.299 million for the same period in fiscal 2024[138]. Segment Performance - The Americas segment generated revenues of$367.2 million for the three months ended November 30, 2024, compared to $348.4 million in the same period of 2023, reflecting a growth of 5.3$143.7 million for the three months ended November 30, 2024, up from $139.6 million in the prior year, marking a growth of 2.4$57.7 million for the three months ended November 30, 2024, compared to $54.3 million in the same period of 2023, a growth of 6.9$191.3 million, with foreign currency exchange rate fluctuations decreasing operating income by $1.1 million[206]. - Cost of services as a percentage of revenues decreased to 45.5$118.6 million, driven by higher employee compensation costs and professional fees[205]. Assets and Capital Expenditures - Total assets as of November 30, 2024, were $4,048.6 million, slightly down from$4,055.0 million as of August 31, 2024[161]. - Capital expenditures for the three months ended November 30, 2024, totaled $25.9 million, compared to$16.5 million in the same period of 2023[160]. - Capital expenditures increased by 57.1% to $25.9 million for the three months ended November 30, 2024, compared to$16.5 million for the same period a year ago[244]. Derivative Instruments and Foreign Currency - The fair value of derivative instruments included in the balance sheet as of November 30, 2024, showed total derivative liabilities of $1.925 million[78]. - As of November 30, 2024, the gross notional value of foreign currency forward contracts was$180.4 million, a decrease from $188.2 million as of August 31, 2024[78]. - The company recognized a pre-tax derivative loss of$4.1 million in cash flow hedge accounting for the three months ended November 30, 2024[79]. - The total gross notional value of foreign currency forward contracts amounted to $180,419,000, compared to$188,155,000 as of August 31, 2024[260]. Employee and Stock-Based Compensation - Total stock-based compensation expense for the three months ended November 30, 2024, was $13.6 million, down from$14.3 million in the same period of 2023[148]. - The company had 3.3 million employee stock-based awards available for grant under the LTIP as of November 30, 2024[154]. - The estimated fair value of stock options granted on November 1, 2024, was $133.10, with a weighted average exercise price of$458.80[150].