Quick Summary:
Learn more at follow us on X and LinkedIn. FactSet Investor Relations Contact: Yet He +1.212.973.5701yet.he@factset.com Media Contact:Megan Kovach+1.512.736.2795megan.kovach@factset.com Consolidated Statements of Income (Unaudited) Three Months Ended November 30,(In thousands, except per share data) 2024 2023 Revenues$568,667 $542,216 Operating expenses Cost of services 258,779 251,621 Selling, general and administrative 118,553 101,555 Total operating expenses 377,332 353,176 Operating income 191,335 189,040 Other income (expense), net Interest income 2,701 3,012 Interest expense (14,400) (16,738)Other income (expense), net 103 (118)Total other income (expense), net (11,596) (13,844) Income before income taxes 179,739 175,196 Provision for income taxes 29,717 26,641 Net income$150,022 $148,555 Basic earnings per common share$3.95 $3.91 Diluted earnings per common share$3.89 $3.84 Basic weighted average common shares 38,005 38,016 Diluted weighted average common shares 38,517 38,643 Consolidated Balance Sheets (Unaudited) (In thousands)November 30, 2024August 31, 2024ASSETS Cash and cash equivalents$289,168 $422,979 Investments 69,623 69,619 Accounts receivable, net of reserves of $15,755 at November 30, 2024 and $14,581 at August 31, 2024 252,521 228,054 Prepaid taxes 78,682 55,103 Prepaid expenses and other current assets 60,702 60,093 Total current assets 750,696 835,848 Property, equipment and leasehold improvements, net 81,524 82,513 Goodwill 1,085,200 1,011,129 Intangible assets, net 1,870,332 1,844,141 Deferred taxes 40,317 61,337 Lease right-of-use assets, net 117,514 130,494 Other assets 96,000 89,578 TOTAL ASSETS$4,041,583 $4,055,040 LIABILITIES Accounts payable and accrued expenses$151,297 $178,250 Current debt 62,460 124,842 Current lease liabilities 31,434 31,073 Accrued compensation 51,760 93,279 Deferred revenues 157,062 159,761 Current taxes payable 44,551 40,391 Dividends payable 39,572 39,470 Total current liabilities 538,136 667,066 Long-term debt 1,296,643 1,241,131 Deferred taxes 8,046 8,452 Deferred revenues, non-current 914 1,344 Taxes payable 41,896 40,452 Long-term lease liabilities 161,372 177,521 Other liabilities 3,015 6,614 TOTAL LIABILITIES$2,050,022 $2,142,580 STOCKHOLDERS’ EQUITY TOTAL STOCKHOLDERS’ EQUITY$1,991,561 $1,912,460 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$4,041,583 $4,055,040 Consolidated Statements of Cash Flows (Unaudited) Three Months Ended November 30,(In thousands) 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income$150,022 $148,555 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 35,717 27,068 Amortization of lease right-of-use assets 7,572 7,618 Stock-based compensation expense 13,592 14,310 Deferred income taxes 21,943 6,703 Other, net 890 3,860 Changes in assets and liabilities, net of effects of acquisitions Accounts receivable (23,377) (9,758)Prepaid expenses and other assets (5,697) (7,164)Accounts payable and accrued expenses (38,793) 31,284 Accrued compensation (40,663) (60,348)Deferred revenues (7,269) (2,542)Taxes payable, net of prepaid taxes (17,806) 5,341 Lease liabilities, net (9,759) (9,783)Net cash provided by operating activities 86,372 155,144 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property, equipment, leasehold improvements and capitalized internal-use software (25,874) (16,466)Acquisition of businesses, net of cash and cash equivalents acquired (115,199) — Purchases of investments (3,987) (8,753)Net cash provided by (used in) investing activities (145,060) (25,219) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from debt 55,000 — Repayments of debt (62,500) (62,500)Dividend payments (39,246) (37,053)Proceeds from employee stock plans 38,850 28,404 Repurchases of common stock (48,790) (59,910)Other financing activities (13,385) (13,505)Net cash provided by (used in) financing activities (70,071) (144,564) Effect of exchange rate changes on cash and cash equivalents (5,052) 1,050 Net increase (decrease) in cash and cash equivalents (133,811) (13,589)Cash and cash equivalents at beginning of period 422,979 425,444 Cash and cash equivalents at end of period$289,168 $411,855 Certain prior year figures have been conformed to the current year's presentation.Reconciliation of U.S.
The table below provides a reconciliation of revenues to organic revenues: (Unaudited)Three Months Ended November 30, (In thousands) 2024 2023 ChangeRevenues$568,667 $542,216 4.9%Acquisition revenues (696) — Currency impact (298) — Organic revenues$567,673 $542,216 4.7% Non-GAAP Financial Measures The table below provides a reconciliation of operating income, operating margin, net income and diluted EPS to adjusted operating income, adjusted operating margin, adjusted net income, EBITDA and adjusted diluted EPS. Three Months Ended November 30, (in thousands, except per share data) 2024 2023 % ChangeOperating income$191,335 $189,040 1.2%Intangible asset amortization 16,581 17,344 Business acquisition and related costs 3,753 — Sales tax dispute(1) 2,398 — Restructuring/Severance (317) (2,419) Adjusted operating income$213,750 $203,965 4.8%Operating margin 33.6% 34.9% Adjusted operating margin(2) 37.6% 37.6% Net income$150,022 $148,555 1.0%Intangible asset amortization 12,397 12,368 Business acquisition and related costs 2,806 — Sales tax dispute(1) 1,793 — Restructuring/Severance (237) (1,725) Income tax items 1,351 (71) Adjusted net income(3)$168,132 $159,127 5.7%Net income 150,022 148,555 1.0%Interest expense 14,400 16,738 Income taxes 29,717 26,641 Depreciation and amortization expense 35,717 27,068 EBITDA$229,856 $219,002 5.0%Diluted EPS$3.89 $3.84 1.3%Intangible asset amortization 0.32 0.32 Business acquisition and related costs 0.08 — Sales tax dispute(1) 0.05 — Restructuring/Severance (0.01) (0.04) Income tax items 0.04 0.00 Adjusted diluted EPS(3)$4.37 $4.12 6.1%Weighted average common shares (diluted) 38,517 38,643 (1) Sales tax dispute relates to a resolved matter with the Massachusetts Department of Revenue.(2) Adjusted operating margin is calculated as Adjusted operating income divided by Revenues.(3) For purposes of calculating Adjusted net income and Adjusted diluted EPS, all adjustments for the three months ended November 30, 2024 and November 30, 2023 were taxed at an adjusted tax rate of 25.2% and 28.7%, respectively.
The primary driver of the higher rate in the first quarter of fiscal 2025 is the revaluation of a deferred tax asset associated with a foreign tax rate change.(1) References to "organic" figures in this press release exclude the current year impact of acquisitions and dispositions completed within the past 12 months and the current year impact from changes in foreign currency.(2) Beginning in fiscal 2025, FactSet is reporting Organic ASV, rather than Organic ASV plus Professional Services, to focus on the recurring nature of our revenues.
