NEW YORK -- (Business Wire)
Nielsen Holdings plc (NYSE:NLSN) today announced second quarter 2017
results. Revenues were $1,644 million for the second quarter of 2017, up
3.0%, or 4.1% on a constant currency basis, compared to the second
quarter of 2016.
“Our revenue in the quarter reflects solid growth in Watch, robust
growth in Buy emerging markets and the contribution from our recent
acquisition of Gracenote. This was partially offset by continued
softness in our U.S. Buy business which reflects the challenging
operating environment for our large fast moving consumer goods clients.
Our rigorous cost and commercial discipline in the quarter enabled us to
deliver margin expansion, while also investing in our key growth
initiatives,” said Mitch Barns, Chief Executive Officer of Nielsen.
Barns continued, “In Watch, we continue to invest in Total Audience
Measurement, adding in new data sets to strengthen our unique position
in the industry as the media landscape continues to evolve. In Buy, the
Connected System is our number one priority. We are making good progress
on bringing capabilities to the market that answer our clients’ key
business questions with speed and efficiency.”
Revenues within the Watch segment for the second quarter of 2017
increased 10.3%, or 10.9% on a constant currency basis, to $821 million,
compared to the second quarter of 2016. Excluding the acquisition of
Gracenote completed on February 1, 2017, Watch revenues increased 3.0%,
or 3.5% on a constant currency basis. Audience Measurement of Video and
Text revenues increased 15.5%, or 16.0% on a constant currency basis.
Excluding the acquisition of Gracenote, Audience Measurement of Video
and Text revenues increased 4.3%, or 4.7% on a constant currency basis,
primarily due to our ongoing investments and continued client adoption
of our Total Audience Measurement system. Audio revenues were flat for
the quarter. Marketing Effectiveness revenues increased by 16.9%, or
18.6% on a constant currency basis, driven by continued strength in
audience-based solutions that help advertisers and publishers measure
the return on investment in media spend and our investments in our
product portfolio. Other Watch revenues decreased 18.6%, or 17.2% on a
constant currency basis, due to our continued portfolio pruning
initiatives.
Revenues within the Buy segment for the second quarter of 2017 decreased
3.4% to $823 million, or 2.0% on a constant currency basis, compared to
the second quarter of 2016. Buy emerging markets revenues increased
9.6%, or 10.0% on a constant currency basis, as our global footprint,
coverage expansion, and broad product offerings continue to position us
well with both local and multinational clients in these markets. Buy
revenues in developed markets decreased 3.2%, or 1.2% on a constant
currency basis, due to continued softness in our U.S. market. Revenues
in Corporate Buy decreased by $38 million, or 69.1% on a reported and
constant currency basis, primarily due to divestitures in December 2016.
Net income for the second quarter of 2017 increased 15.9%, or 17.0% on a
constant currency basis, to $131 million, compared to the second quarter
of 2016, due primarily to lower restructuring charges during the second
quarter of 2017. Net income per share on a diluted basis was $0.37,
compared to $0.31 for the second quarter of 2016.
Adjusted EBITDA for the second quarter of 2017 increased 4.5%, or 4.9%
on a constant currency basis, to $512 million, compared to the second
quarter of 2016. Adjusted EBITDA margins grew 44 basis points, or 25
basis points on a constant currency basis, to 31.1%, due primarily to
the benefit of our ongoing productivity initiatives.
Financial Position
As of June 30, 2017, Nielsen’s cash and cash equivalents were $510
million and gross debt was $8,523 million. Net debt (gross debt less
cash and cash equivalents) was $8,013 million and our net debt leverage
ratio was 4.05x at the end of the quarter. Net capital expenditures were
$64 million for the second quarter of 2017, compared to $112 million for
the second quarter of 2016. Cash taxes were $70 million for the second
quarter of 2017, compared to $39 million for the second quarter of 2016.
Cash flow from operations increased to $226 million for the second
quarter of 2017 from $210 million in the second quarter of 2016. Free
cash flow for the second quarter of 2017 increased to $162 million,
compared to a $98 million in the second quarter of 2016. Cash flow
performance was driven by higher net income, discussed above, and lower
net capital expenditures.
Capital Allocation
The company repurchased $41 million of shares of its common stock during
the second quarter of 2017. The company has a total of $354 million
remaining for repurchase under the existing share repurchase program as
of June 30, 2017.
2017 Full Year Guidance
The company is updating its full year guidance as highlighted below:
-
Total revenue growth on a constant currency basis: ~4%
-
Adjusted EBITDA margin growth on a constant currency basis: ~20bps
-
GAAP net income per share: $1.40 - $1.46
-
Free cash flow: ~$900 million
Conference Call and Webcast
Nielsen will hold a conference call to discuss its second quarter 2017
results at 8:00 a.m. U.S. Eastern Time (ET) on July 27, 2017. The audio
and slides for the call can be accessed live by webcast at http://nielsen.com/investors
or by dialing +1-877-201-0168. Callers outside the U.S. can dial
+1-647-788-4901. The passcode for the call is “44631960.” An audio
replay and transcript will be available on the investor relations
website after the call.
Forward-looking Statements
This news release includes information that could constitute
forward-looking statements made pursuant to the safe harbor provision of
the Private Securities Litigation Reform Act of 1995. These statements
include those set forth under “2017 Full Year Guidance” above as well as
those that may be identified by words such as ‘will’, ‘intend’,
‘expect’, ‘anticipate’, ‘should’, ‘goal’, ‘look’, ‘could’, ‘shall’ and
similar expressions. These statements are subject to risks and
uncertainties, and actual results and events could differ materially
from what presently is expected. Factors leading thereto may include
without limitations general economic conditions, conditions in the
markets Nielsen is engaged in, behavior of customers, suppliers and
competitors, technological developments, as well as legal and regulatory
rules affecting Nielsen’s business and specific risk factors discussed
in other releases and public filings made by the company (including the
company’s filings with the Securities and Exchange Commission). This
list of factors is not intended to be exhaustive. Such forward-looking
statements only speak as of the date of this press release, and we
assume no obligation to update any written or oral forward-looking
statement made by us or on our behalf as a result of new information,
future events, or other factors.
About Nielsen
Nielsen Holdings plc (NYSE:NLSN) is a global performance management
company that provides a comprehensive understanding of what consumers
watch and buy. Nielsen’s Watch segment provides media and advertising
clients with Total Audience measurement services across all devices
where content — video, audio and text — is consumed. The Buy segment
offers consumer packaged goods manufacturers and retailers the
industry’s only global view of retail performance measurement. By
integrating information from its Watch and Buy segments and other data
sources, Nielsen provides its clients with both world-class measurement
as well as analytics that help improve performance. Nielsen, an S&P 500
company, has operations in over 100 countries that cover more than 90
percent of the world’s population. For more information, visit www.nielsen.com.
From time to time, Nielsen may use its website and social media outlets
as channels of distribution of material company information. Financial
and other material information regarding the company is routinely posted
and accessible on our website at http://www.nielsen.com/investors
and our Twitter account at http://twitter.com/Nielsen.
Results of Operations—(Three and Six Months Ended June 30, 2017 and
2016)
The following table sets forth, for the periods indicated, the amounts
included in our condensed consolidated statements of operations:
|
| | |
| | |
| | Three Months Ended June 30, (Unaudited) | | | Six Months Ended June 30, (Unaudited) | |
(IN MILLIONS, EXCEPT SHARE AND PER SHARE DATA) | | 2017 | |
| 2016 | | | 2017 | |
| 2016 | |
Revenues
| |
$
|
1,644
| | |
$
|
1,596
| | |
$
|
3,170
| | |
$
|
3,083
| |
Cost of revenues
| | |
678
| | | |
654
| | | |
1,339
| | | |
1,295
| |
Selling, general and administrative expenses
| | |
471
| | | |
474
| | | |
942
| | | |
939
| |
Depreciation and amortization(1) | | |
162
| | | |
152
| | | |
317
| | | |
299
| |
Restructuring charges
| |
|
9
| | |
|
34
| | |
|
41
| | |
|
44
| |
Operating income
| |
|
324
| | |
|
282
| | |
|
531
| | |
|
506
| |
Interest income
| | |
1
| | | |
1
| | | |
2
| | | |
2
| |
Interest expense
| | |
(92
|
)
| | |
(83
|
)
| | |
(182
|
)
| | |
(162
|
)
|
Foreign currency exchange transaction losses, net
| | |
(7
|
)
| | |
(4
|
)
| | |
(9
|
)
| | |
(5
|
)
|
Other expenses, net
| |
|
(2
|
)
| |
|
-
| | |
|
(2
|
)
| |
|
-
| |
Income from continuing operations before income taxes
| | |
224
| | | |
196
| | | |
340
| | | |
341
| |
Provision for income taxes
| |
|
(91
|
)
| |
|
(82
|
)
| |
|
(134
|
)
| |
|
(126)
| |
Net income
| | |
133
| | | |
114
| | | |
206
| | | |
215
| |
Net income attributable to noncontrolling interests
| |
|
2
| | |
|
1
| | |
|
4
| | |
|
2
| |
Net income attributable to Nielsen stockholders
| |
$
|
131
| | |
$
|
113
| | |
$
|
202
| | |
$
|
213
| |
Net income per share of common stock, basic
| | | | | | | | | | | | | | | | |
Net income attributable to Nielsen stockholders
| |
$
|
0.37
| | |
$
|
0.31
| | |
$
|
0.57
| | |
$
|
0.59
| |
Net income per share of common stock, diluted
| | | | | | | | | | | | | | | | |
Net income attributable to Nielsen stockholders
| |
$
|
0.37
| | |
$
|
0.31
| | |
$
|
0.56
| | |
$
|
0.58
| |
Weighted-average shares of common stock outstanding, basic
| | |
356,829,766
| | | |
359,264,465
| | | |
357,113,183
| | | |
360,422,568
| |
Dilutive shares of common stock
| |
|
1,255,301
| | |
|
3,952,412
| | |
|
1,455,260
| | |
|
3,786,441
| |
Weighted-average shares of common stock outstanding, diluted
| |
|
358,085,067
| | |
|
363,216,877
| | |
|
358,568,443
| | |
|
364,209,009
| |
| | | | | | | | | | | | | | | |
|
(1)Depreciation and amortization associated with tangible and
intangible assets acquired in business combinations were $56 million and
$110 million, respectively, for the three and six months ended June 30,
2017 and $53 million and $105 million, respectively, for the three and
six months ended June 30, 2016.
Certain Non-GAAP Measures
We use the non-GAAP financial measures discussed below to evaluate our
results of operations, financial condition, liquidity and indebtedness.
We believe that the presentation of these non-GAAP measures provides
useful information to investors regarding financial and business trends
related to our results of operations, cash flows and indebtedness and
that when this non-GAAP financial information is viewed with our GAAP
financial information, investors are provided with valuable supplemental
information regarding our results of operations, thereby facilitating
period-to-period comparisons of our business performance and is
consistent with how management evaluates the company’s operating
performance and liquidity. In addition, these non-GAAP measures address
questions the Company routinely receives from analysts and investors
and, in order to assure that all investors have access to similar data
the Company has determined that it is appropriate to make this data
available to all investors. None of the non-GAAP measures presented
should be considered as an alternative to net income or loss, operating
income or loss, cash flows from operating activities, total indebtedness
or any other measures of operating performance and financial condition,
liquidity or indebtedness derived in accordance with GAAP. These
non-GAAP measures have important limitations as analytical tools and
should not be considered in isolation or as substitutes for an analysis
of our results as reported under GAAP. Our use of these terms may vary
from the use of similarly-titled measures by others in our industry due
to the potential inconsistencies in the method of calculation and
differences due to items subject to interpretation.
Constant Currency Presentation
We evaluate our results of operations on both an as reported and a
constant currency basis. The constant currency presentation, which is a
non-GAAP measure, excludes the impact of fluctuations in foreign
currency exchange rates. We believe providing constant currency
information provides valuable supplemental information regarding our
results of operations, thereby facilitating period-to-period comparisons
of our business performance and is consistent with how management
evaluates the company’s performance. We calculate constant currency
percentages by converting our prior-period local currency financial
results using the current period exchange rates and comparing these
adjusted amounts to our current period reported results. No adjustment
has been made to foreign currency exchange transaction gains or losses
in the calculation of constant currency net income.
The below table presents a reconciliation from revenue on a reported
basis to revenue on a constant currency basis for the three and six
months ended June 30, 2017.
|
| |
|
| |
|
| | |
| |
|
| | |
(IN MILLIONS) (UNAUDITED) | | Three Months Ended June 30, 2017 Reported | | | Three Months Ended June 30, 2016 Reported | | | % Variance 2017 vs. 2016 Reported | | | Three Months Ended June 30, 2016 Constant Currency | | | % Variance 2017 vs. 2016 Constant Currency | |
| | | | | | | | | |
| | | | | | | |
| | |
Revenues by segment | | | | | | | | | | | | | | | | | | | | |
Emerging Markets
| |
$
|
296
| | |
$
|
270
| | | |
9.6
|
%
| |
$
|
269
| | | |
10.0
|
%
|
Developed Markets
| |
|
510
| | |
|
527
| | |
|
(3.2)
|
%
| |
|
516
| | |
|
(1.2)
|
%
|
Core Buy | |
| 806 | | |
| 797 | | |
| 1.1 | % | |
| 785 | | |
| 2.7 | % |
Corporate
| |
|
17
| | |
|
55
| | |
|
(69.1)
|
%
| |
|
55
| | |
|
(69.1)
|
%
|
Buy | | $ | 823 | | | $ | 852 | | |
| (3.4) | % | | $ | 840 | | |
| (2.0) | % |
| | | | | | | | | | | | | | | | | | | |
|
Marketing Effectiveness
| |
$
|
83
| | |
$
|
71
| | | |
16.9
|
%
| |
$
|
70
| | | |
18.6
|
%
|
Audio
| | |
123
| | | |
123
| | | |
0.0
|
%
| | |
123
| | | |
0.0
|
%
|
Audience Measurement (Video and Text)
| |
|
567
| | |
|
491
| | |
|
15.5
|
%
| |
|
489
| | |
|
16.0
|
%
|
Core Watch | |
| 773 | | |
| 685 | | |
| 12.8 | % | |
| 682 | | |
| 13.3 | % |
Corporate/Other Watch
| |
|
48
| | |
|
59
| | |
|
(18.6
|
)%
| |
|
58
| | |
|
(17.2
|
)%
|
Watch | | $ | 821 | | | $ | 744 | | |
| 10.3 | % | | $ | 740 | | |
| 10.9 | % |
Total Core Buy and Watch | |
| 1,579 | | |
| 1,482 | | |
| 6.5 | % | |
| 1,467 | | |
| 7.6 | % |
Total | | $ | 1,644 | | | $ | 1,596 | | |
| 3.0 | % | | $ | 1,580 | | |
| 4.1 | % |
| | | | | | | | | | | | | | | | | | | |
|
|
| |
|
| |
|
| | |
| |
|
| | |
(IN MILLIONS) (UNAUDITED) | | Six Months Ended June 30, 2017 Reported | | | Six Months Ended June 30, 2016 Reported | | | % Variance 2017 vs. 2016 Reported | | | Six Months Ended June 30, 2016 Constant Currency | | | % Variance 2017 vs. 2016 Constant Currency | |
| | | | | | | | | |
| | | | | | | |
| | |
Revenues by segment | | | | | | | | | | | | | | | | | | | | |
Emerging Markets
| |
$
|
563
| | |
$
|
513
| | | |
9.7
|
%
| |
$
|
512
| | | |
10.0
|
%
|
Developed Markets
| |
|
981
| | |
|
1,042
| | |
|
(5.9)
|
%
| |
|
1,024
| | |
|
(4.2)
|
%
|
Core Buy | |
| 1,544 | | |
| 1,555 | | |
| (0.7) | % | |
| 1,536 | | |
| 0.5 | % |
Corporate
| |
|
36
| | |
|
90
| | |
|
(60.0)
|
%
| |
|
90
| | |
|
(60.0)
|
%
|
Buy | | $ | 1,580 | | | $ | 1,645 | | |
| (4.0) | % | | $ | 1,626 | | |
| (2.8) | % |
| | | | | | | | | | | | | | | | | | | |
|
Marketing Effectiveness
| |
$
|
148
| | |
$
|
129
| | | |
14.7
|
%
| |
$
|
127
| | | |
16.5
|
%
|
Audio
| | |
243
| | | |
243
| | | |
0.0
|
%
| | |
243
| | | |
0.0
|
%
|
Audience Measurement (Video and Text)
| |
|
1,102
| | |
|
963
| | |
|
14.4
|
%
| |
|
961
| | |
|
14.7
|
%
|
Core Watch | |
| 1,493 | | |
| 1,335 | | |
| 11.8 | % | |
| 1,331 | | |
| 12.2 | % |
Corporate/Other Watch
| |
|
97
| | |
|
103
| | |
|
(5.8
|
)%
| |
|
101
| | |
|
(4.0
|
)%
|
Watch | | $ | 1,590 | | | $ | 1,438 | | |
| 10.6 | % | | $ | 1,432 | | |
| 11.0 | % |
Total Core Buy and Watch | |
| 3,037 | | |
| 2,890 | | |
| 5.1 | % | |
| 2,867 | | |
| 5.9 | % |
Total | | $ | 3,170 | | | $ | 3,083 | | |
| 2.8 | % | | $ | 3,058 | | |
| 3.7 | % |
| | | | | | | | | | | | | | | | | | | |
|
The below table presents a reconciliation of Net Income and Adjusted
EBITDA on a reported basis to a constant currency basis for the three
and six months ended June 30, 2017.
|
| |
|
| |
|
| | |
| |
|
| | |
(IN MILLIONS) (UNAUDITED) | | Three Months Ended June 30, 2017 Reported | | | Three Months Ended June 30, 2016 Reported | | | % Variance 2017 vs. 2016 Reported | | | Three Months Ended June 30, 2016 Constant Currency | | | % Variance 2017 vs. 2016 Constant Currency | |
| | | | | | | | | |
| | | | | | | |
| | |
| | | | | | | | | | | | | | | | | | | |
|
Net Income attributable to Nielsen stockholders
| |
$
|
131
| | |
$
|
113
| | | |
15.9
|
%
| |
$
|
112
| | | |
17.0
|
%
|
| | | | | | | | | | | | | | | | | | | |
|
Adjusted EBITDA
| |
$
|
512
| | |
$
|
490
| | | |
4.5
|
%
| |
$
|
488
| | | |
4.9
|
%
|
| | | | | | | | | | | | | | | | | | | |
|
|
| |
|
| |
|
| | |
| |
|
| | |
(IN MILLIONS) (UNAUDITED) | | Six Months Ended June 30, 2017 Reported | | | Six Months Ended June 30, 2016 Reported | | | % Variance 2017 vs. 2016 Reported | | | Six Months Ended June 30, 2016 Constant Currency | | | % Variance 2017 vs. 2016 Constant Currency | |
| | | | | | | | | |
| | | | | | | |
| | |
| | | | | | | | | | | | | | | | | | | |
|
Net Income attributable to Nielsen stockholders
| |
$
|
202
| | |
$
|
213
| | | |
(5.2)
|
%
| |
$
|
213
| | | |
(5.2)
|
%
|
| | | | | | | | | | | | | | | | | | | |
|
Adjusted EBITDA
| |
$
|
934
| | |
$
|
892
| | | |
4.7
|
%
| |
$
|
891
| | | |
4.8
|
%
|
| | | | | | | | | | | | | | | | | | | |
|
Adjusted EBITDA
We define Adjusted EBITDA as net income or loss from our consolidated
statements of operations before interest income and expense, income
taxes, depreciation and amortization, restructuring charges, stock-based
compensation expense and other non-operating items from our consolidated
statements of operations as well as certain other items that arise
outside the ordinary course of our continuing operations specifically
described below.
Restructuring charges: We exclude
restructuring expenses, which primarily include employee severance,
office consolidation and contract termination charges, from our Adjusted
EBITDA to allow more accurate comparisons of the financial results to
historical operations and forward-looking guidance. By excluding these
expenses from our non-GAAP measures, management is better able to
evaluate our ability to utilize our existing assets and estimate the
long-term value these assets will generate for us. Furthermore, we
believe that the adjustments of these items more closely correlate with
the sustainability of our operating performance.
Stock-based compensation expense: We
exclude the impact of costs relating to stock-based compensation. Due to
the subjective assumptions and a variety of award types, we believe that
the exclusion of stock-based compensation expense, which is typically
non-cash, allows for more meaningful comparisons of operating results to
peer companies. Stock-based compensation expense can vary significantly
based on the timing, size and nature of awards granted.
Other non-operating expenses, net: We
exclude foreign currency exchange transaction gains and losses primarily
related to intercompany financing arrangements as well as other
non-operating income and expense items, such as, gains and losses
recorded on business combinations or dispositions, sales of investments,
net income attributable to noncontrolling interests and early redemption
payments made in connection with debt refinancing. We believe that the
adjustments of these items more closely correlate with the
sustainability of our operating performance.
Other items: To measure operating
performance, we exclude certain expenses and gains that arise outside
the ordinary course of our continuing operations. Such costs primarily
include legal settlements, acquisition related expenses, business
optimization costs and other transaction costs. We believe the exclusion
of such amounts allows management and the users of the financial
statements to better understand our financial results.
Adjusted EBITDA is not a presentation made in accordance with GAAP, and
our use of the term Adjusted EBITDA may vary from the use of
similarly-titled measures by others in our industry due to the potential
inconsistencies in the method of calculation and differences due to
items subject to interpretation.
We use Adjusted EBITDA to measure our performance from period to period
both at the consolidated level as well as within our operating segments,
to evaluate and fund incentive compensation programs and to compare our
results to those of our competitors. In addition to Adjusted EBITDA
being a significant measure of performance for management purposes, we
also believe that this presentation provides useful information to
investors regarding financial and business trends related to our results
of operations and that when non-GAAP financial information is viewed
with GAAP financial information, investors are provided with a more
meaningful understanding of our ongoing operating performance.
Adjusted EBITDA should not be considered as an alternative to net income
or loss, operating income, cash flows from operating activities or any
other performance measures derived in accordance with GAAP as measures
of operating performance or cash flows as measures of liquidity.
Adjusted EBITDA has important limitations as an analytical tool and
should not be considered in isolation or as a substitute for analysis of
our results as reported under GAAP.
The below table presents reconciliations from net income to Adjusted
EBITDA for the three and six months ended June 30, 2017 and 2016:
|
| |
|
| |
| | Three Months Ended June 30, (Unaudited) | | | Six Months Ended June 30, (Unaudited) |
(IN MILLIONS) | | 2017 |
|
| 2016 | | | 2017 |
|
| 2016 |
Net income attributable to Nielsen stockholders | |
$
|
131
| | |
$
|
113
| | |
$
|
202
| | |
$
|
213
|
Interest expense, net
| | |
91
| | | |
82
| | | |
180
| | | |
160
|
Provision for income taxes
| | |
91
| | | |
82
| | | |
134
| | | |
126
|
Depreciation and amortization
| |
|
162
| | |
|
152
| | |
|
317
| | |
|
299
|
EBITDA
| | |
475
| | | |
429
| | | |
833
| | | |
798
|
Other non-operating expense, net
| | |
11
| | | |
5
| | | |
15
| | | |
7
|
Restructuring charges
| | |
9
| | | |
34
| | | |
41
| | | |
44
|
Stock-based compensation expense
| | |
12
| | | |
13
| | | |
27
| | | |
26
|
Other items(a) | |
|
5
| | |
|
9
| | |
|
18
| | |
|
17
|
Adjusted EBITDA | |
$
|
512
| | |
$
|
490
| | |
$
|
934
| | |
$
|
892
|
| | | | | | | | | | | | | | |
|
|
|
| |
|
| |
| | |
(a)
| | |
For the three and six months ended June 30, 2017 and 2016, other
items primarily consist of business optimization and
transaction-related costs.
|
| | | | | |
|
Free Cash Flow
We define free cash flow as net cash provided by operating activities,
plus contributions to the Nielsen Foundation, less capital expenditures,
net. We believe providing free cash flow information provides valuable
supplemental liquidity information regarding the cash flow that may be
available for discretionary use by us in areas such as the distributions
of dividends, repurchase of common stock, voluntary repayment of debt
obligations or to fund our strategic initiatives, including
acquisitions, if any. However, free cash flow does not represent
residual cash flows entirely available for discretionary purposes; for
example, the repayment of principal amounts borrowed is not deducted
from free cash flow. Key limitations of the free cash flow measure
include the assumptions that we will be able to refinance our existing
debt when it matures and meet other cash flow obligations from financing
activities, such as principal payments on debt. Free cash flow is not a
presentation made in accordance with GAAP. The following table presents
reconciliation from net cash provided by operating activities to free
cash flow:
|
| | |
| | |
| | Three Months Ended June 30, (Unaudited) | | | Six Months Ended June 30, (Unaudited) | |
(IN MILLIONS) | | 2017 | |
| 2016 | | | 2017 | |
| 2016 | |
Net cash provided by operating activities
| |
$
|
226
| | |
$
|
210
| | |
$
|
266
| | |
$
|
297
| |
Plus: Non-recurring contribution to the Nielsen Foundation
| | |
—
| | | |
—
| | | |
—
| | | |
36
| |
Less: Capital expenditures, net
| |
|
(64
|
)
| |
|
(112
|
)
| |
|
(178
|
)
| |
|
(221
|
)
|
Free cash flow
| |
$
|
162
| | |
$
|
98
| | |
$
|
88
| | |
$
|
112
| |
| | | | | | | | | | | | | | | |
|
Net Debt and Net Debt Leverage Ratio
The net debt leverage ratio is defined as net debt (gross debt less cash
and cash equivalents) as of the balance sheet date divided by Adjusted
EBITDA for the twelve months then ended. Net debt and the net debt
leverage ratio are commonly used metrics to evaluate and compare
leverage between companies and are not presentations made in accordance
with GAAP. The calculation of net debt and the net debt leverage ratio
as of June 30, 2017 is as follows:
|
|
(IN MILLIONS) (Unaudited) | |
Gross debt as of June 30, 2017
|
|
$
|
8,523
| |
Less: cash and cash equivalents as of June 30, 2017
| |
|
(510
|
)
|
Net debt as of June 30, 2017 | | $ | 8,013 | |
| | | |
|
Adjusted EBITDA for the year ended December 31, 2016
| |
$
|
1,938
| |
Less: Adjusted EBITDA for the six months ended June 30, 2016
| |
$
|
(892
|
)
|
Add: Adjusted EBITDA for the six months ended June 30, 2017
| |
$
|
934
|
|
Adjusted EBITDA for the twelve months ended June 30, 2017 | | $ | 1,980 | |
| | | |
|
Net debt leverage ratio as of June 30, 2017 | | | 4.05x | |
| | | |
|
2017 Guidance Non-GAAP Reconciliations
The below table presents the reconciliation from net income to Adjusted
EBITDA for our 2017 guidance:
|
| |
(IN MILLIONS) (Unaudited) | | |
Net income | |
$
|
500 - 525
|
Interest expense, net
| | |
365 - 375
|
Provision for income taxes
| | |
310 - 330
|
Depreciation and amortization
| | |
665 - 675
|
Restructuring charges
| | |
60 - 70
|
Stock-based compensation expense and other
| |
|
100 - 105
|
Adjusted EBITDA | |
$
|
2,030 – 2,050
|
| | |
|
The below table presents a reconciliation from revenue on a reported
basis to revenue on a constant currency basis for our 2017 guidance:
|
|
| |
|
| |
|
| |
(IN MILLIONS) (Unaudited) | | | 2017 Guidance | | | % Variance Constant Currency | | | 2016 Revenue Constant Currency |
Total Revenue
| | |
$
|
~6,585
| | |
~4%
| | |
$
|
6,331
|
| | | | | | | | | | |
|
The below table presents reconciliation from net cash provided by
operating activities to free cash flow for our 2017 guidance:
|
| |
(IN MILLIONS) (Unaudited) | | |
Net cash provided by operating activities
| |
~$1,360
| |
Less: Capital expenditures, net
| |
~(460
|
)
|
Free cash flow
| |
~$900
| |
| | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170727005298/en/
Contacts:
For Nielsen:
Investor Relations:
Sara Gubins, 646-654-8153
or
Media
Relations:
Anne Taylor Adams, 646-654-5759
Source: Nielsen Holdings plc
© 2024 Canjex Publishing Ltd. All rights reserved.