FactSet(US:FDS)2024-04-03 11:29Financial Instruments - As of February 29, 2024, the total gross notional value of foreign currency forward contracts was $187.391 million, an increase from $172.644 million as of August 31, 2023[69]. - The company entered into a new interest rate swap agreement on March 1, 2024, with a notional amount of $200 million and a fixed interest rate of 5.145%[71]. - The company reported a net pre-tax derivative loss of $0.1 million expected to be reclassified into earnings within the next 12 months[75]. - The company’s interest rate swap agreement recognized a gain of $17,000 for the three months ended February 29, 2024[75]. - The total cash flow hedges as of February 29, 2024, amounted to $187.391 million, down from $372.644 million as of August 31, 2023[73]. - The company’s foreign currency forward contracts recognized a loss of $623,000 in accumulated other comprehensive loss (AOCL) for the three months ended February 29, 2024[75]. Goodwill and Intangible Assets - Goodwill as of February 29, 2024, was $1.003883 billion, slightly down from $1.004736 billion as of August 31, 2023, primarily due to foreign currency translations[77]. - Amortization expense for intangible assets for the three months ended February 29, 2024, was $26.688 million, compared to $21.782 million for the same period in 2023[80]. - The weighted average useful life of intangible assets as of February 29, 2024, was 32.1 years, with no material impairment identified during the reporting period[79]. - Estimated amortization expense for intangible assets for the remaining six months of 2024 is projected to be $53.369 million[80]. Taxation - The provision for income taxes for the three months ended February 29, 2024, was $27,705 thousand, up from $25,169 thousand in the prior year, reflecting a 6.1% increase[82]. - The effective tax rate for the three months ended February 29, 2024, was 16.4%, slightly higher than 16.1% for the same period in 2023[82]. - The company utilized foreign tax credits, which partially offset the effective tax rate increase due to higher pretax income and foreign tax rates[84]. - The effective tax rate for the six months ended February 29, 2024, was 15.8%, compared to 14.7% for the same period in the previous year[216]. Debt and Cash Flow - Total long-term debt as of February 29, 2024, was $1,489,488 thousand, down from $1,612,700 thousand as of August 31, 2023, indicating a reduction of 7.6%[93]. - The company repaid $62.5 million and $125.0 million under the 2022 Term Facility during the three and six months ended February 29, 2024, respectively[99]. - Interest expense on outstanding debt for the three months ended February 29, 2024, was $16,589 thousand, compared to $16,728 thousand for the same period in 2023, reflecting a decrease of 0.8%[108]. - Net cash provided by operating activities for the six months ended February 29, 2024, was $298.9 million, a 10.2% increase from $271.3 million for the same period in 2023[253]. - Net cash used in investing activities was $83.3 million for the six months ended February 29, 2024, primarily due to $44.9 million in investments and $38.4 million in capital expenditures[256]. - The company reported a net cash outflow of $102.0 million to support working capital requirements for the six months ended February 29, 2024[254]. - Free cash flow for the six months ended February 29, 2024, was $260.6 million, an increase of $24.7 million compared to the same period in 2023[261]. Shareholder Returns - The company repurchased 113,050 shares of common stock for a total cost of $52,255 thousand during the three months ended February 29, 2024[122]. - The total amount of dividends declared for the second quarter of fiscal 2024 was $37,360 thousand, with a dividend per share of $0.98[126]. - The company returned $186.3 million to stockholders in the form of share repurchases and dividends during the six months ended February 29, 2024, compared to $67.5 million in dividends during the same period in 2023[245]. - The company had $187.8 million authorized under its share repurchase program for future share repurchases as of February 29, 2024[124]. Revenue and Earnings - Income before income taxes for the three months ended February 29, 2024, was $168,645 thousand, compared to $156,762 thousand for the same period in 2023, representing an increase of 5.6%[82]. - Basic earnings per share (EPS) for the three months ended February 29, 2024, was $3.70, an increase from $3.44 in the same period of 2023, representing a growth of 7.5%[130]. - Diluted EPS for the six months ended February 29, 2024, was $7.49, compared to $6.89 for the same period in 2023, indicating a year-over-year increase of 8.7%[130]. - Total revenues for the six months ended February 29, 2024, reached $1.088 billion, compared to $1.020 billion for the same period in 2023, marking a growth of 6.7%[150]. - Revenues for Q2 FY2024 were $545.9 million, a 6.0% increase from the prior year, driven by organic revenue growth of 6.0%[180]. - Organic revenues for the six months ended February 29, 2024, increased by 6.6% to $1,087.5 million from $1,019.9 million in the same period a year ago[226]. Operating Performance - Operating income for the Americas segment for the three months ended February 29, 2024, was $81.711 million, up from $61.181 million in the same period of 2023, indicating a significant increase of 33.5%[150]. - Operating margin improved to 33.3% in Q2 FY2024, up from 32.9% in the prior year, attributed to revenue growth and reduced computer-related expenses[162]. - Operating income increased 7.5% to $181.9 million for the three months ended February 29, 2024, compared to $169.3 million in the prior year[202]. - Operating margin increased to 33.3% for the three months ended February 29, 2024, compared to 32.9% in the prior year[206]. Employee and Client Metrics - The company had more than 8,000 clients, comprising over 206,000 investment professionals as of February 29, 2024[154]. - Employee headcount grew by 3.2% to 12,279, with significant growth in Asia Pacific, while the Americas and EMEA saw slight decreases[175]. - The company had 3.7 million employee stock-based awards available for grant under the LTIP as of February 29, 2024[138]. Regional Performance - The Americas segment generated revenues of $352.618 million for the three months ended February 29, 2024, an increase of 6.5% from $331.121 million in the same period of 2023[150]. - EMEA revenues increased 5.0% to $139.2 million for the three months ended February 29, 2024, driven by a 4.8% increase in organic revenues[185]. - Asia Pacific revenues increased 5.2% to $54.1 million for the three months ended February 29, 2024, reflecting a 6.4% increase in organic revenues[186]. - Americas revenues increased 7.1% to $701.0 million for the six months ended February 29, 2024, with organic revenue growth of 7.1%[187]. - EMEA revenues increased 5.9% to $278.7 million for the six months ended February 29, 2024, driven by a 5.4% increase in organic revenues[188]. - Asia Pacific revenues increased 6.1% to $108.4 million for the six months ended February 29, 2024, reflecting a 7.0% increase in organic revenues[189].