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8-K - FORM 8-K - GARTNER INC | y89493e8vk.htm |
Exhibit 99.1
Press Release |
CONTACT:
Andrew Spender
Vice President
Corporate Communications
+1 203 316 3286
andrew.spender@gartner.com
Andrew Spender
Vice President
Corporate Communications
+1 203 316 3286
andrew.spender@gartner.com
Gartner Reports Financial Results for Fourth Quarter and Full Year 2010
Contract Value was $978 Million, Highest in Gartners
History, Up 25% YoY
Full Year 2010 Diluted Income per Share was $0.96, Up 13% YoY
Full Year 2010 Free Cash Flow was $191.8 Million, Up 31% YoY
STAMFORD, Conn., February 7, 2011 Gartner, Inc. (NYSE: IT), the leading provider of
research and analysis on the global information technology industry, today reported results for
fourth quarter and full year 2010, and provided its preliminary financial outlook for 2011.
For fourth quarter 2010, total revenue was $382.3 million, up 17% year-over-year excluding the
impact of foreign exchange and 16% as reported. Net income increased 43% and Normalized EBITDA
increased 25% to $72.5 million. Diluted income per share was $0.37 compared to $0.26 per share for
fourth quarter 2009. Both the fourth quarter of 2010 and 2009 were negatively impacted by
Acquisition Adjustments totaling $(0.02) per share after-tax. Diluted Income Per Share Excluding
Acquisition Adjustments was $0.39 for fourth quarter 2010 and $0.28 for fourth quarter 2009. See
Non-GAAP Financial Measures for a discussion of Normalized EBITDA and Diluted Income Per Share
Excluding Acquisition Adjustments.
For full year 2010, total revenue was $1,288.5 million, an increase of 13%, and net income was
$96.3 million. Normalized EBITDA was $230.4 million, an increase of 20% over 2009. Diluted income
per share was $0.96 compared to $0.85 in 2009. The 2010 net income and diluted income per share
were negatively impacted by Acquisition Adjustments totaling $22.0 million pre-tax, or $(0.14) per
share after-tax. The 2009 results were positively impacted by tax benefits not expected to recur
totaling $4.7 million, or $0.05 per share and negatively impacted by Acquisition Adjustments
totaling $2.9 million pre-tax, or $(0.02) per share after-tax. Diluted Income Per Share Excluding
Acquisition Adjustments was $1.10 for 2010 and $0.87 for 2009.
Gene Hall, Gartners chief executive officer, commented, We achieved record levels of new business
and contract value, our client and wallet retention metrics improved for the fifth consecutive
quarter, and many of our other key business metrics continued to accelerate during the fourth
quarter. We delivered double-digit revenue, normalized EBITDA and EPS growth for the full year
2010 and expect to deliver double-digit growth across those measures in 2011 as well.
Business Segment Highlights
Research
Revenue for fourth quarter 2010 was $230.6 million, up 19% year-over-year excluding the impact of
foreign exchange. Gross contribution margin improved 2 percentage points year-over-year to 65%.
-more-
For full year 2010, revenue was $865.0 million, up 14% year-over-year excluding the impact of
foreign exchange. Gross contribution margin was 65% for both periods.
Contract value was $977.7 million at December 31, 2010, up 25% year-over-year and the highest
reported contract value in Gartners history. Year-over-year, contract value increased 20%
excluding the impact of foreign exchange. Client and wallet retention rates for fourth quarter
2010 were 83% and 98%, respectively, up from 78% and 87% for 2009. The 2009 metrics exclude the
acquisitions of AMR Research and Burton Group.
Consulting
Revenue for fourth quarter 2010 was $89.3 million, up 11% year-over-year excluding the impact of
foreign exchange. Gross contribution margin increased 1 percentage point year-over-year to 42%.
For full year 2010, revenue was $302.1 million, up 6% year-over-year excluding the impact of
foreign exchange. Gross contribution margin increased by 1 point, to 40%.
Fourth quarter 2010 utilization was 66% and billable headcount was 473. Backlog was $100.8 million
at December 31, 2010, up almost 11% versus December 31, 2009. The 2009 metrics exclude the
acquisitions of AMR Research and Burton Group.
Events
Revenue for fourth quarter 2010 was $62.4 million, up 21% year-over-year excluding the impact of
foreign exchange. Gross contribution margin increased 6 percentage points year-over-year to 53%.
For full year 2010, revenue was $121.3 million, up 21% excluding the impact of foreign exchange.
Gross contribution margin was 46%, an increase of 5 points.
During fourth quarter 2010, the Company held 12 events with 18,194 attendees. During full year
2010, the Company held 56 events with 37,219 attendees.
Cash Flow and Balance Sheet Highlights
Gartner generated cash provided by operating activities of $79.1 million during fourth quarter
2010 and $205.5 million during full year 2010. Additions to property, equipment and leasehold
improvements (Capital Expenditures) were $9.5 million for fourth quarter 2010 and $21.7 million
for full year 2010. Free Cash Flow for full year 2010 was $191.8 million, an increase of 31% over
2009. See Non-GAAP Financial Measures for a definition of Free Cash Flow.
The Company had cash of $120.2 million at December 31, 2010. During 2010, the Company deployed its
cash principally to repurchase 3.9 million of its shares and to pay down debt.
As of December 31, 2010, the Company had total debt of $220.2 million compared to total debt of
$329.0 million at year-end 2009. The Company refinanced its debt in late 2010 to take advantage of
favorable financing conditions and to obtain greater financial flexibility and liquidity through a
larger revolving credit facility. The new credit arrangement provides for a five-year, $200.0
million term loan and a $400.0 million revolving credit facility.
Gartner, Inc. | page 2 |
Preliminary Financial Outlook for 2011
Gartner also provided its preliminary financial outlook for 2011:
Projected Revenue
($ in millions) | 2011 Projected | % Change | ||||||
Research |
$ | 990 – 1,010 | 14% – 17 | % | ||||
Consulting |
310 – 330 | 3% – 9 | % | |||||
Events |
130 – 140 | 7% – 15 | % | |||||
Total Revenue |
$ | 1,430 – 1,480 | 11% – 15 | % |
Projected Earnings and Cash Flow
($ in millions, except per share data) | 2011 Projected | % Change | ||||||
Diluted Income Per Share (1) |
$ | 1.29 – $1.41 | 34% – 47 | % | ||||
Normalized EBITDA (2) |
$ | 270 – 290 | 17% – 26 | % | ||||
Operating cash flow (3) |
$ | 250 – 270 | 22% – 31 | % | ||||
Capital Expenditures (3) |
(39) – (41 | ) | ||||||
Free Cash Flow (2) |
$ | 211 – 229 | 10% – 19 | % |
(1) | Includes a projected $(0.04) per share impact from AMR Research and Burton Group Acquisition Adjustments. In 2010, these charges were $(0.14) per share. | |
(2) | See Non-GAAP Financial Measures below for a discussion of Normalized EBITDA and Free Cash Flow. | |
(3) | Includes approximately $15.0 million of estimated payments for the renovation of our Stamford headquarters facility. The accounting impact of these renovation payments increases both cash flow from operations and capital expenditures (investing activities) by the same amount and as a result has no net impact on Free Cash Flow. These expenditures are contractually reimbursable from the landlord. |
Conference Call and Investor Day Information
Gartner has scheduled a conference call at 8:30 a.m. Tuesday, February 8, 2011, to discuss the
Companys financial results. The conference call will be available via the Internet by accessing
the Companys web site at http://investor.gartner.com. A replay of the webcast will be available
for approximately 90 days following the call.
The Company will also host an Investor Day for institutional investors and sell-side analysts
beginning at 9:00 a.m. eastern time on Wednesday, February 16, 2011 in Greenwich, Connecticut. The
Investor Day is by invitation only and registration is required. It will also be webcast live via
the Internet on the Companys web site at http://investor.gartner.com and a replay will be
available following the event. Please contact Germaine Scott at 203-316-3411 for further
information.
Annual Meeting of Stockholders
Gartner will hold its 2011 Annual Meeting of Stockholders at 10:00 a.m. eastern time on Thursday,
June 2, 2011, at the Companys offices in Stamford, Connecticut.
About Gartner
Gartner, Inc. (NYSE: IT) is the worlds leading information technology research and advisory
company. Gartner delivers the technology-related insight necessary for its clients to make the
right decisions, every day. From CIOs and senior IT leaders in corporations and government
agencies, to business leaders in high-tech and telecom enterprises and professional services firms,
to technology investors, Gartner is the valuable partner to 60,000 clients in 11,000 distinct
organizations. Through the resources of Gartner
Gartner, Inc. | page 3 |
Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with
every client to research, analyze and interpret the business of IT within the context of their
individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and
has 4,500 associates, including 1,200 research analysts and consultants, and clients in 85
countries. For more information, visit www.gartner.com.
Non-GAAP Financial Measures
Investors are cautioned that Normalized EBITDA, Diluted Income Per Share Excluding Acquisition
Adjustments, and Free Cash Flow are not financial measures under generally accepted accounting
principles. In addition, they should not be construed as alternatives to any other measures of
performance determined in accordance with generally accepted accounting principles. These non-GAAP
financial measures are provided to enhance the users overall understanding of the Companys
current financial performance and the Companys prospects for the future.
Normalized EBITDA: Represents operating income excluding depreciation, accretion on
obligations related to excess facilities, amortization, stock based compensation expense,
Acquisition Adjustments, and Other charges. We believe Normalized EBITDA is an important measure
of our recurring operations as it excludes items that may not be indicative of our core operating
results.
Diluted Income Per Share Excluding Acquisition Adjustments: Represents diluted income per
share excluding charges related to the acquisitions of AMR Research and Burton Group, which
primarily consist of amortization of identifiable intangibles, fair value adjustments on
pre-acquisition deferred revenue and certain non-recurring costs such as legal, consulting,
severance and other exit costs (Acquisition Adjustments). We believe Diluted Income Per Share
Excluding Acquisition Adjustments is an important measure of our recurring operations as it
excludes items that may not be indicative of our core operating results.
Free Cash Flow: Represents cash provided by operating activities excluding cash charges
related to the acquisitions of AMR Research and Burton Group, which primarily consist of certain
non-recurring costs such as severance and other exit costs (Cash Acquisition and Integration
Charges), less additions to property, equipment and leasehold improvements (Capital
Expenditures). We believe that Free Cash Flow is an important measure of the recurring cash
generated by the Companys core operations that is available to be used to repurchase stock, repay
debt obligations and invest in future growth through new business development activities or
acquisitions.
Safe Harbor Statement
Statements contained in this press release regarding the growth and prospects of the business, the
Companys projected 2011 financial results and all other statements in this release other than
recitation of historical facts are forward-looking statements (as defined in the Private Securities
Litigation Reform Act of 1995). Such forward-looking statements include risks and uncertainties;
consequently, actual results may differ materially from those expressed or implied thereby. Factors
that could cause actual results to differ materially include, but are not limited to, the ability
to expand or retain Gartners customer base; the ability to grow or sustain revenue from individual
customers; the ability to retain and expand the professional staff of research analysts and
consultants upon whom Gartner is dependent; the ability to achieve and effectively manage growth;
the ability to pay Gartners debt obligations; the ability to achieve continued customer renewals
and achieve new contract value, backlog and deferred revenue growth in light of competitive
pressures; the ability to carry out Gartners strategic initiatives and manage associated costs;
the ability to effectively integrate the businesses of AMR Research and Burton Group; substantial
competition from existing competitors and potential new competitors; additional risks associated
with international operations including foreign currency fluctuations; the impact of restructuring
and other charges on Gartners businesses and operations; general economic conditions; risks
associated with the creditworthiness of governments and agencies; and all other risks described
from time to time in Gartners
Gartner, Inc. | page 4 |
reports filed with the Securities and Exchange Commission, including Gartners most recent Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q. These filings can be found on Gartners
website at www.gartner.com/investors and the SECs website at www.sec.gov. Forward-looking
statements included herein speak only as of the date hereof and Gartner disclaims any obligation to
revise or update such statements to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events or circumstances.
# # #
Gartner, Inc. | page 5 |
GARTNER, INC.
Condensed Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
Condensed Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
2010 (a) | 2009 | 2010 (a) | 2009 | |||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Research |
$ | 230,552 | $ | 195,180 | 18 | % | $ | 865,000 | $ | 752,505 | 15 | % | ||||||||||||
Consulting |
89,321 | 81,506 | 10 | % | 302,117 | 286,847 | 5 | % | ||||||||||||||||
Events |
62,431 | 52,141 | 20 | % | 121,337 | 100,448 | 21 | % | ||||||||||||||||
Total revenues |
382,304 | 328,827 | 16 | % | 1,288,454 | 1,139,800 | 13 | % | ||||||||||||||||
Costs and expenses: |
||||||||||||||||||||||||
Cost of services and product development |
164,959 | 146,499 | 13 | % | 552,238 | 498,363 | 11 | % | ||||||||||||||||
Selling, general and administrative |
154,796 | 131,023 | 18 | % | 543,174 | 477,003 | 14 | % | ||||||||||||||||
Depreciation |
6,131 | 6,211 | -1 | % | 25,349 | 25,387 | 0 | % | ||||||||||||||||
Amortization of intangibles |
2,531 | 416 | >100 | % | 10,525 | 1,636 | >100 | % | ||||||||||||||||
Acquisition and integration charges |
813 | 2,934 | -72 | % | 7,903 | 2,934 | >100 | % | ||||||||||||||||
Total costs and expenses |
329,230 | 287,083 | 15 | % | 1,139,189 | 1,005,323 | 13 | % | ||||||||||||||||
Operating income |
53,074 | 41,744 | 27 | % | 149,265 | 134,477 | 11 | % | ||||||||||||||||
Interest expense, net |
(6,047 | ) | (2,927 | ) | >100 | % | (15,616 | ) | (16,032 | ) | -3 | % | ||||||||||||
Other (expense) income, net |
(300 | ) | (414 | ) | -28 | % | 436 | (2,919 | ) | >100 | % | |||||||||||||
Income before income taxes |
46,727 | 38,403 | 22 | % | 134,085 | 115,526 | 16 | % | ||||||||||||||||
Provision for income taxes |
10,033 | 12,687 | -21 | % | 37,800 | 32,562 | 16 | % | ||||||||||||||||
Net income |
$ | 36,694 | $ | 25,716 | 43 | % | $ | 96,285 | $ | 82,964 | 16 | % | ||||||||||||
Income per common share: |
||||||||||||||||||||||||
Basic: |
$ | 0.38 | $ | 0.27 | 41 | % | $ | 1.01 | $ | 0.88 | 15 | % | ||||||||||||
Diluted: |
$ | 0.37 | $ | 0.26 | 42 | % | $ | 0.96 | $ | 0.85 | 13 | % | ||||||||||||
Weighted average shares outstanding: |
||||||||||||||||||||||||
Basic |
95,895 | 95,493 | 0 | % | 95,747 | 94,658 | 1 | % | ||||||||||||||||
Diluted |
99,567 | 99,241 | 0 | % | 99,834 | 97,549 | 2 | % |
(a) | Includes the full three and twelve month results of AMR Research, Inc. and Burton Group, Inc., which were acquired in December 2009. |
BUSINESS SEGMENT DATA
(Dollars in thousands)
(Dollars in thousands)
Direct | Gross | Contribution | ||||||||||||||
Revenue | Expense | Contribution | Margin | |||||||||||||
Three Months Ended 12/31/10 (a) |
||||||||||||||||
Research |
$ | 230,552 | $ | 81,333 | $ | 149,219 | 65 | % | ||||||||
Consulting |
89,321 | 51,658 | 37,663 | 42 | % | |||||||||||
Events |
62,431 | 29,234 | 33,197 | 53 | % | |||||||||||
TOTAL |
$ | 382,304 | $ | 162,225 | $ | 220,079 | 58 | % | ||||||||
Three Months Ended 12/31/09 |
||||||||||||||||
Research |
$ | 195,180 | $ | 72,125 | $ | 123,055 | 63 | % | ||||||||
Consulting |
81,506 | 47,721 | 33,785 | 41 | % | |||||||||||
Events |
52,141 | 27,496 | 24,645 | 47 | % | |||||||||||
TOTAL |
$ | 328,827 | $ | 147,342 | $ | 181,485 | 55 | % | ||||||||
Twelve Months Ended 12/31/10 (a) |
||||||||||||||||
Research |
$ | 865,000 | $ | 300,473 | $ | 564,527 | 65 | % | ||||||||
Consulting |
302,117 | 180,232 | 121,885 | 40 | % | |||||||||||
Events |
121,337 | 65,453 | 55,884 | 46 | % | |||||||||||
TOTAL |
$ | 1,288,454 | $ | 546,158 | $ | 742,296 | 58 | % | ||||||||
Twelve Months Ended 12/31/09 |
||||||||||||||||
Research |
$ | 752,505 | $ | 262,643 | $ | 489,862 | 65 | % | ||||||||
Consulting |
286,847 | 174,748 | 112,099 | 39 | % | |||||||||||
Events |
100,448 | 59,503 | 40,945 | 41 | % | |||||||||||
TOTAL |
$ | 1,139,800 | $ | 496,894 | $ | 642,906 | 56 | % | ||||||||
(a) | Includes the full three and twelve month results of AMR Research, Inc. and Burton Group, Inc., which were acquired in December 2009. |
SELECTED STATISTICAL DATA
December 31, | December 31, | |||||||
2010 (a) | 2009 | |||||||
Research contract value |
$ | 977,710 | (b) | $ | 784,443 | (b) | ||
Research client retention |
83 | % | 78 | % | ||||
Research wallet retention |
98 | % | 87 | % | ||||
Research client organizations |
11,601 | 10,492 | ||||||
Consulting backlog |
$ | 100,839 | (b) | $ | 90,891 | (b) | ||
Consultingquarterly utilization |
66 | % | 68 | % | ||||
Consulting billable headcount |
473 | 422 | ||||||
Consultingaverage annualized revenue
per billable headcount |
$ | 419 | (b) | $ | 435 | (b) | ||
Eventsnumber of events for the quarter |
12 | 13 | ||||||
Eventsattendees for the quarter |
18,194 | 15,634 |
(a) | Includes metrics for AMR Research, Inc. and Burton Group, Inc. | |
(b) | Dollars in thousands. |
SUPPLEMENTAL INFORMATION (in thousands, except per share amounts)
Reconciliation Operating income to Normalized EBITDA (a):
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net income |
$ | 36,694 | $ | 25,716 | $ | 96,285 | $ | 82,964 | ||||||||
Interest expense, net |
6,047 | 2,927 | 15,616 | 16,032 | ||||||||||||
Other expense (income), net |
300 | 414 | (436 | ) | 2,919 | |||||||||||
Tax provision |
10,033 | 12,687 | 37,800 | 32,562 | ||||||||||||
Operating income |
$ | 53,074 | $ | 41,744 | $ | 149,265 | $ | 134,477 | ||||||||
Normalizing adjustments: |
||||||||||||||||
Depreciation, accretion, and amortization (b) |
8,777 | 6,769 | 36,475 | 27,704 | ||||||||||||
Stock-based compensation expense (c) |
9,336 | 6,589 | 32,634 | 26,066 | ||||||||||||
Pre-acquisition deferred revenue (d) |
522 | | 4,095 | | ||||||||||||
Acquisition and integration charges (e) |
813 | 2,934 | 7,903 | 2,934 | ||||||||||||
Normalized EBITDA |
$ | 72,522 | $ | 58,036 | $ | 230,372 | $ | 191,181 | ||||||||
(a) | Normalized EBITDA is based on GAAP operating income adjusted for certain normalizing adjustments. | |
(b) | Consists of depreciation, accretion on obligations related to excess facilities, and amortization of intangibles. | |
(c) | Consists of charges for stock-based compensation awards determined in accordance with FASB ASC Topic 718. | |
(d) | Consists of non-cash fair value adjustments on pre-acquisition AMR Research and Burton Group deferred revenue. These amounts are amortized ratably over the life of the underlying contract. | |
(e) | Includes non-recurring cash charges incurred to acquire and integrate the acquisitions of AMR Research and Burton Group, such as legal, consulting, severance, and other costs. |
Reconciliation Diluted income per share to Diluted Income Per Share
Excluding
Acquisition Adjustments (a):
Three Months Ended December 31, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
After-tax | After-tax | |||||||||||||||
Amount | EPS | Amount | EPS | |||||||||||||
Diluted income per share |
$ | 36,694 | $ | 0.37 | $ | 25,716 | $ | 0.26 | ||||||||
Acquisition adjustments, net of tax effect (b): |
||||||||||||||||
Amortization of intangibles (c) |
1,519 | 0.02 | | | ||||||||||||
Pre-acquisition deferred revenue (d) |
316 | | | | ||||||||||||
Acquisition and integration charges (e) |
492 | | 1,775 | 0.02 | ||||||||||||
Diluted Income Per Share Excluding Acquisition
Adjustments (f) |
$ | 39,021 | $ | 0.39 | $ | 27,491 | $ | 0.28 | ||||||||
Twelve Months Ended December 31, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
After-tax | After-tax | |||||||||||||||
Amount | EPS | Amount | EPS | |||||||||||||
Diluted income per share |
$ | 96,285 | $ | 0.96 | $ | 82,964 | $ | 0.85 | ||||||||
Acquisition adjustments, net of tax effect (b): |
||||||||||||||||
Amortization of intangibles (c) |
6,076 | 0.06 | | | ||||||||||||
Pre-acquisition deferred revenue (d) |
2,477 | 0.03 | | | ||||||||||||
Acquisition and integration charges (e) |
4,781 | 0.05 | 1,775 | 0.02 | ||||||||||||
Diluted Income Per Share Excluding Acquisition
Adjustments (g) |
$ | 109,619 | $ | 1.10 | $ | 84,739 | $ | 0.87 | ||||||||
(a) | Diluted Income Per Share Excluding Acquisition Adjustments is based on GAAP diluted income per share adjusted for the per share impact of certain AMR Research and Burton Group acquisition adjustments, net of tax effect. | |
(b) | Acquisition adjustments reflect an effective tax rate of 39.5%. | |
(c) | Consists of non-cash amortization charges related to AMR Research and Burton Group intangibles. | |
(d) | Consists of non-cash fair value adjustments on pre-acquisition AMR Research and Burton Group deferred revenue. These amounts are amortized ratably over the life of the underlying contract. | |
(e) | Includes non-recurring cash charges incurred to acquire and integrate the acquisitions of AMR Research and Burton Group, such as legal, consulting, severance, and other costs. | |
(f) | Based on fully diluted shares of 99.6 million and 99.2 million in 2010 and 2009, respectively. | |
(g) | Based on fully diluted shares of 99.8 million and 97.5 million in 2010 and 2009, respectively. |
SUPPLEMENTAL INFORMATION continued (in thousands)
Selected Balance Sheet Data | ||||||||
(unaudited and preliminary) | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
Cash and cash equivalents |
$ | 120,181 | $ | 116,574 | ||||
Fees receivable, net |
364,818 | 317,598 | ||||||
Total assets |
1,285,658 | 1,215,279 | ||||||
Deferred revenues |
523,263 | 437,207 | ||||||
Total current and long-term debt |
220,156 | 329,000 | ||||||
Total liabilities |
1,098,602 | 1,102,744 | ||||||
Total stockholders equity |
187,056 | 112,535 |
Selected Cash Flow Data | ||||||||
(unaudited and preliminary) | ||||||||
Twelve Months Ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
Cash provided by operating activities |
$ | 205,499 | $ | 161,937 | ||||
Additions to capital expenditures |
(21,694 | ) | (15,142 | ) | ||||
Cash paid for AMR & Burton acquisitions |
(12,151 | ) | (104,523 | ) | ||||
Purchases of treasury shares |
(99,820 | ) | (3,744 | ) | ||||
Net debt activity |
(108,844 | ) | (87,250 | ) | ||||
Payments for debt issue costs |
(4,783 | ) | |
Reconciliation Cash Provided by Operating Activities to Free Cash Flow (a):
(unaudited and preliminary)
(unaudited and preliminary)
Twelve Months Ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
Cash provided by operating activities |
$ | 205,499 | $ | 161,937 | ||||
Adjustments: |
||||||||
Cash acquisition and integration charges |
8,003 | | ||||||
Additions to capital expenditures |
(21,694 | ) | (15,142 | ) | ||||
Free Cash Flow |
$ | 191,808 | $ | 146,795 | ||||
(a) | Free cash flow is based on cash provided by operating activities determined in accordance with GAAP plus cash acquisition and integration charges less additions to capital expenditures. |