Attached files

file filename
8-K - FORM 8-K - Nielsen CO B.V.d291891d8k.htm

Exhibit 99.1

 

LOGO

News Release

Investor Relations: Liz Zale, +1 646 654 4593

Media Relations: Kristie Bouryal, +1 646 654 5577

NIELSEN REPORTS FOURTH QUARTER AND FULL YEAR 2011 RESULTS

 

   

Revenues for the year grew 8% to $5,532 million, up 6% in constant currency

 

   

Adjusted EBITDA for the year grew 10% to $1,546 million, up 8% in constant currency

 

   

Adjusted Net Income for the year increased to $590 million from $266 million. Net income for the year was $86 million as compared to $132 million in 2010.

New York, USA – February 6, 2012 – Nielsen Holdings N.V. (NYSE: NLSN), a leading global provider of information and insights into what consumers buy and watch, today announced financial results for the fourth quarter and year ended December 31, 2011.

“Nielsen delivered solid fourth quarter results, with double-digit growth in developing markets and steady gains in all other regions,” said David Calhoun, Chief Executive Officer of Nielsen. “We feel great about our first year as a public company and look forward to achieving continued progress in 2012.”

Fourth Quarter 2011 Operating Results

Revenues for the fourth quarter increased 4% to $1,421 million, or 5% on a constant currency basis compared to the fourth quarter of 2010. Growth was driven by a 4% increase within our Buy segment (5% on a constant currency basis), a 3% increase within our Watch segment (3% on a constant currency basis) and a 17% increase within our Expositions segment (17% on a constant currency basis).

Adjusted EBITDA for the fourth quarter increased 7% to $432 million, or 9% on a constant currency basis compared to the fourth quarter of 2010. Net income for the fourth quarter was $95 million compared to $4 million in the fourth quarter of 2010. Net income per share, on a diluted basis, was $0.26 compared to $0.01 in the fourth quarter of 2010. Adjusted Net Income for the fourth quarter increased to $190 million compared to $99 million in the fourth quarter of 2010. Adjusted Net Income per share was $0.51 compared to $0.35 in the fourth quarter of 2010.

Year Ended December 2011 Operating Results

Revenues for full year 2011 increased 8% to $5,532 million, or 6% on a constant currency basis compared to full year 2010. Growth was driven by a 10% increase within our Buy segment (7% on a constant currency basis), a 5% increase within our Watch segment (4% on a constant currency basis) and a 7% increase in our Expositions segment (7% on a constant currency basis).

 

Page 1 of 8


Adjusted EBITDA for full year 2011 increased 10% to $1,546 million, or 8% on a constant currency basis compared to 2010. Net income for full year 2011 was $86 million compared to $132 million for 2010. The 2011 results included charges associated with the IPO of $206 million (net of tax of $127 million). Net income per share, on a diluted basis, was $0.24 compared to $0.46 in 2010. Adjusted Net Income for full year 2011 increased to $590 million compared to $266 million for full year 2010. Adjusted Net Income per share was $1.61 compared to $0.95 in 2010.

Financial Position

As of December 31, 2011, cash balances were $319 million and gross debt was $6,475 million, excluding the $288 million mandatory convertible subordinated bonds due 2013. Net debt (gross debt less cash and cash equivalents) at the end of 2011 was $6,156 million and our net debt leverage ratio was 4.0x. In 2011, we voluntarily repaid $287 million of our senior secured term loans due 2013, including $162 million in the fourth quarter. Capital expenditures were $367 million for full year 2011, compared with $334 million for 2010. In February 2012, we executed a new $1.2 billion five-year term loan, the proceeds from which were applied to refinance the majority of our previously existing 2013 bank maturities. This transaction results in 84% of our debt portfolio with a maturity of 2016 or beyond.

Conference Call and Webcast

Nielsen will hold a conference call to discuss fourth quarter and full year results at 9:00 a.m. U.S. Eastern Time (ET) on February 6, 2012. The audio and slides for the call can be accessed live by webcast at http://ir.nielsen.com or by dialing 1-866-652-5200. Callers outside the U.S. and Canada can dial +1-412-317-6060. The passcode for the call is “Nielsen.” An archive 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 may be identified by words such as ‘will’, ‘expect’, ‘should’, ‘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 N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, visit www.nielsen.com.

 

Page 2 of 8


Results of Operations—(Three and Twelve Months Ended December 31, 2011 and 2010)

The following table sets forth, for the periods indicated, the amounts included in our Consolidated Statements of Operations:

 

    

Three Months Ended

December 31,

(Unaudited)

   

Twelve Months Ended

December 31,

(Unaudited)

 

(IN MILLIONS EXCEPT SHARE AND PER SHARE DATA)

   2011     2010     2011     2010  

Revenues

   $ 1,421      $ 1,371      $ 5,532      $ 5,126   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenues

     564        560        2,237        2,129   

Selling, general and administrative expenses

     435        429        1,888        1,648   

Depreciation and amortization

     133        139        529        558   

Restructuring charges

     29        28        84        61   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     260        215        794        730   
  

 

 

   

 

 

   

 

 

   

 

 

 

Interest income

     1        2        6        5   

Interest expense

     (109     (169     (477     (660

Loss on derivative instruments

     —          (10     (1     (27

Foreign currency exchange transaction (losses)/gains, net

     (2     (5     (9     136   

Other income/(expense), net

     12        (90     (209     (81
  

 

 

   

 

 

   

 

 

   

 

 

 

Income/(loss) from continuing operations before income taxes and equity in net income of affiliates

     162        (57     104        103   

(Provision)/benefit for income taxes

     (73     60        (22     46   

Equity in net income of affiliates

     4        4        3        5   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     93        7        85        154   

Income/(loss) from discontinued operations, net of tax

     2        (3     1        (22
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     95        4        86        132   

Net income attributable to noncontrolling interests

     —          1        2        2   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Nielsen stockholders

   $ 95      $ 3      $ 84      $ 130   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share of common stock, basic

        

Income from continuing operations

   $ 0.26      $ 0.02      $ 0.24      $ 0.55   

Income/(loss) from discontinued operations, net of tax

     —          (0.01     —          (0.08
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Nielsen stockholders

   $ 0.26      $ 0.01      $ 0.24      $ 0.47   

Net income per share of common stock, diluted

        

Income from continuing operations

   $ 0.26      $ 0.02      $ 0.24      $ 0.54   

Income/(loss) from discontinued operations, net of tax

     —          (0.01     —          (0.08
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Nielsen stockholders

   $ 0.26      $ 0.01      $ 0.24      $ 0.46   

Weighted-average shares of common stock outstanding, basic

     360,062,174        276,545,279        352,469,181        276,499,073   

Dilutive shares of common stock from stock compensation plans

     5,071,820        3,696,065        5,032,773        3,153,513   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares of common stock outstanding, diluted

     365,133,994        280,241,344        357,501,954        279,652,586   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Page 3 of 8


Certain Non-GAAP Measures

We use the non-GAAP financial measures discussed below to evaluate the results of our operations. 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 and that when this non-GAAP financial information is viewed with our GAAP financial information, investors are provided with a more meaningful understanding of our ongoing operating performance. 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 performance measures of operating performance, 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, consistent with how we evaluate our 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.

Adjusted EBITDA and Adjusted Net Income

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, goodwill and intangible asset impairment charges, stock compensation expense and other non-operating items from our consolidated statements of operations as well as certain other items considered unusual or non-recurring in nature. 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.

We define Adjusted net income as net income or loss from our consolidated statements of operations before income taxes, depreciation and amortization associated with acquired tangible and intangible assets, restructuring charges, goodwill and intangible asset impairment charges, other non-operating items from our consolidated statements of operations and certain other items considered unusual or non-recurring in nature, reduced by cash paid for income taxes. Also excluded from Adjusted net income is interest expense attributable to the mandatory convertible subordinated bonds due 2013. Adjusted Net Income per share of common stock presented on a diluted basis includes potential common shares associated with stock-based compensation plans that may have been considered anti-dilutive in accordance with GAAP. The amount also includes the weighted-average amount of shares of common stock convertible associated with the mandatory convertible bonds based upon the average price of our common stock during the period.

 

Page 4 of 8


Adjusted net income and Adjusted net income per share of common stock are not presentations made in accordance with GAAP.

The below table presents a reconciliation from net income to Adjusted EBITDA and Adjusted net income and a reconciliation from weighted-average shares outstanding on a GAAP basis to dilutive shares outstanding for the three and twelve months ended December 31, 2011 and 2010, respectively:

 

(IN MILLIONS EXCEPT SHARE AND PER SHARE DATA)

   Three Months Ended
December 31,
(Unaudited)
    Twelve Months Ended
December 31,
(Unaudited)
 
   2011     2010     2011     2010  

Net income

   $ 95      $ 4      $ 86      $ 132   

(Income)/loss from discontinued operations, net of tax

     (2     3        (1     22   

Interest expense, net

     108        167        471        655   

Provision/(benefit) for income taxes

     73        (60     22        (46

Depreciation and amortization

     133        139        529        558   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     407        253        1,107        1,321   

Equity in net income of affiliates

     (4     (4     (3     (5

Other non-operating (income)/expense, net

     (10     105        219        (28

Restructuring charges

     29        28        84        61   

Stock-based compensation expense

     9        5        27        18   

Other items(a)

     1        15        112        44   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     432        402        1,546        1,411   

Interest expense, net

     (108     (167     (471     (655

Depreciation and amortization

     (133     (139     (529     (558

Depreciation and amortization associated with acquisition-related tangible and intangible assets

     42        48        182        215   

Cash paid for income taxes

     (40     (40     (132     (129

Stock-based compensation expense

     (9     (5     (27     (18

Interest expense attributable to mandatory convertible bonds

     6        —          21        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

   $ 190      $ 99      $ 590      $ 266   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income per share of common stock, diluted

   $ 0.51      $ 0.35      $ 1.61      $ 0.95   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares of common stock outstanding, basic

     360,062,174        276,545,279        352,469,181        276,499,073   

Dilutive shares of common stock from stock compensation plans

     5,071,820        3,696,065        5,032,773        3,153,513   

Shares of common stock convertible associated with the mandatory convertible bonds

     10,416,700        —          9,531,994        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares of common stock outstanding, diluted

     375,550,694        280,241,344        367,033,948        279,652,586   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Other items primarily consist of Sponsor Advisory Fees (including termination payments of $102 million for the year ended December 31, 2011), costs related to our initial public offering and other deal related fees.

 

Page 5 of 8


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 December 31, 2011 is as follows:

 

$00,000
(IN MILLIONS)  

Total indebtedness as of December 31, 2011

   $ 6,763   

Less: mandatory convertible subordinated bonds due 2013

     288   
  

 

 

 

Gross debt as of December 31, 2011

     6,475   

Less: cash and cash equivalents as of December 31, 2011

     319   
  

 

 

 

Net debt as of December 31, 2011

   $ 6,156   

Adjusted EBITDA for the twelve months ended December 31, 2011

   $ 1,546   

Net debt leverage ratio

     4.0x   

Unaudited Supplemental Business Segment Information

We align our business into three reporting segments: what consumers buy (consumer purchasing measurement and analytics), what consumers watch (media audience measurement and analytics) and expositions. Effective in the fourth quarter of 2011, in order to better align our external reporting with how we manage the business, we realigned specific areas between our reportable segments. Certain aspects of our global mobile measurement client portfolio as well as our advertising solutions business, that were formerly reported in the Buy segment, have been moved to the Watch segment. Prior period results discussed above have been adjusted to reflect this presentation.

The below tables detail supplemental unaudited business segment revenue and income (Adjusted EBITDA), aligned to the current segment presentation, for each of the quarterly periods in three years ended December 31, 2011, 2010 and 2009.

 

Page 6 of 8


 

Revenue    Buy      Watch      Expos      Corporate     Total  
(IN MILLIONS)                                  

2011

             

Three months ended March 31

   $ 778       $ 468       $ 56       $ —        $ 1,302   

Three months ended June 30

     871         487         38         —          1,396   

Three months ended September 30

     864         485         64         —          1,413   

Three months ended December 31

     896         504         21         —          1,421   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 3,409       $ 1,944       $ 179       $ —        $ 5,532   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

2010

             

Three months ended March 31

   $ 712       $ 435       $ 49       $ —        $ 1,196   

Three months ended June 30

     764         468         38         —          1,270   

Three months ended September 30

     770         456         63         —          1,289   

Three months ended December 31

     862         491         18         —          1,371   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 3,108       $ 1,850       $ 168       $ —        $ 5,126   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

2009

             

Three months ended March 31

   $ 628       $ 420       $ 54       $ —        $ 1,102   

Three months ended June 30

     702         433         47         —          1,182   

Three months ended September 30

     720         449         58         —          1,227   

Three months ended December 31

     811         465         21         —          1,297   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 2,861       $ 1,767       $ 180       $ —        $ 4,808   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
Business Segment Income (Adjusted EBITDA)    Buy      Watch      Expos      Corporate     Total  

(IN MILLIONS)

             

2011

             

Three months ended March 31

   $ 120       $ 177       $ 33       $ (10   $ 320   

Three months ended June 30

     180         199         13         (6     386   

Three months ended September 30

     177         195         37         (1     408   

Three months ended December 31

     222         210         4         (4     432   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 699       $ 781       $ 87       $ (21   $ 1,546   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

Page 7 of 8


 

Revenue    Buy      Watch      Expos     Corporate     Total  
(IN MILLIONS)                                 

2010

            

Three months ended March 31

   $ 116       $ 153       $ 26      $ (5   $ 290   

Three months ended June 30

     164         178         14        (8     348   

Three months ended September 30

     155         179         36        1        371   

Three months ended December 31

     221         194         2        (15     402   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total

   $ 656       $ 704       $ 78      $ (27   $ 1,411   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

2009

            

Three months ended March 31

   $ 94       $ 144       $ 24      $ (5   $ 257   

Three months ended June 30

     146         171         7        (7     317   

Three months ended September 30

     145         175         34        3        357   

Three months ended December 31

     210         182         (2     (9     381   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total

   $ 595       $ 672       $ 63      $ (18   $ 1,312   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

The below table presents supplemental unaudited business segment revenue constant currency performance rates for each of the quarterly periods in the year ended December 31, 2011, as compared to the same periods in 2010, and for each of the quarter periods in the year ended December 31, 2010, as compared to the same periods in 2009.

 

Revenue    Buy     Watch       Expos       Total  

2011

        

Three months ended March 31

     7.3     6.6     14.3     7.3

Three months ended June 30

     7.0     1.7     0.0     4.9

Three months ended September 30

     7.1     4.3     1.6     5.8

Three months ended December 31

     5.4     2.9     16.7     4.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

     6.7     3.8     6.5     5.6
  

 

 

   

 

 

   

 

 

   

 

 

 

2010

        

Three months ended March 31

     6.3     0.9     (10.1 %)      3.6

Three months ended June 30

     7.9     7.6     (17.8 %)      6.7

Three months ended September 30

     8.8     3.6     8.2     6.8

Three months ended December 31

     7.3     6.0     (15.0 %)      7.2
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

     7.6     4.6     (6.7 %)      6.1
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Page 8 of 8