[July 26, 2016] |
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CEB Reports Second Quarter Results and Updates 2016 Guidance
CEB Inc. ("CEB" or "Company") (NYSE: CEB), a best practice insight and
technology company, today announced financial results for the second
quarter ended June 30, 2016.
HIGHLIGHTS - SECOND QUARTER 2016
-
Revenue of $242.6 million (an increase of 4.6%); Adjusted revenue of
$251.1 million (an increase of 7.9%)
-
Net income of $7.7 million (a decrease of 66.6%); Adjusted net income
of $31.5 million (a decrease of 4.0%)
-
Adjusted EBITDA of $64.5 million (an increase of 6.9%); Adjusted
EBITDA margin of 25.7%
-
Diluted earnings per share of $0.24 (a decrease of 65.2%); Non-GAAP
diluted earnings per share of $0.97 (no change)
-
Completed acquisition of Evanta on April 29, 2016
"Our focus in the second quarter remained squarely on delivering great
customer impact and setting up for stronger outcomes in the second half
and beyond. Current events in the economy and society create an unusual
opportunity for us to help our clients and members, and we are working
hard to deliver impact," said Tom Monahan, CEB Chairman and CEO. "You
can see the result in this quarter: organic bookings growth improved
modestly to the low single-digits, our CEB Events group came out of the
gates quickly following the Evanta acquisition, and we delivered solid
results in quarterly revenue and Adjusted EBITDA. We enter the third
quarter with a great team on the field and our eyes on sharp execution
amid the continued volatility of the current environment."
OUTLOOK FOR 2016
The Company updates its 2016 annual guidance as follows: Revenue of $957
to $982 million, Adjusted revenue of $970 to $995 million, capital
expenditures of $32 to $34 million, Non-GAAP diluted earnings per share
of $3.95 to $4.15, Adjusted EBITDA margin of at least 26.25%, and
depreciation and amortization expense of $104 to $106 million. Adjusted
revenue refers to revenue before the impact of the reduction of
acquisition-related deferred revenue to fair value recognized in the
post-acquisition period ("deferred revenue fair value adjustment"). The
estimated reduction in 2016 revenue to reflect the impact of the
deferred revenue fair value adjustment is expected to be approximately
$13 million. This guidance is based on the following foreign currency
exchange rates: 1.33 US dollar ("USD") to the British Pound, 1.11 USD to
the Euro, and 0.75 USD to the Australian Dollar.
For the third quarter of 2016, the Company expects Revenue of at least
$230 million, Adjusted EBITDA margin of at least 24.5%, and Non-GAAP
diluted earnings per share of at least $0.85.
SHARE REPURCHASE
In the second quarter of 2016, the Company repurchased approximately
81,000 shares of its common stock at a total cost of $5.2 million. These
purchases were made pursuant to the Company's $150 million stock
repurchase program, which is authorized through December 31, 2017.
QUARTERLY DIVIDEND
The Company announced that its Board of Directors has approved a cash
dividend on its common stock for the third quarter of 2016 of $0.4125
per share. The dividend is payable on September 30, 2016 to stockholders
of record on September 15, 2016. The Company will fund its dividend
payments with cash on hand and cash generated from operations.
NON-GAAP FINANCIAL MEASURES
This press release and the accompanying tables, as well as earnings
discussions, include a discussion of Adjusted revenue, Adjusted
effective tax rate, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
net income, Non-GAAP diluted earnings per share, and constant currency
financial information, all of which are non-GAAP financial measures
provided as a complement to the results provided in accordance with
accounting principles generally accepted in the United States of America
("GAAP"). "Adjusted EBITDA margin" refers to Adjusted EBITDA as a
percentage of Adjusted revenue. A reconciliation of each of these
non-GAAP measures to the most directly comparable GAAP measure is
included in the accompanying tables.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 that
involve risks, uncertainties and assumptions. Statements using words
such as "estimates," "expects," "anticipates," "projects," "plans,"
"intends," "believes," "forecasts," and variations of such words or
similar expressions are intended to identify forward-looking statements.
In addition, all statements other than statements of historical fact are
statements that could be deemed forward-looking statements, including
but not limited to our 2016 annual and third quarter guidance. You are
hereby cautioned that these statements are based upon our expectations
at the time we make them and may be affected by important factors
including, among others, the factors set forth below and in our filings
with the US Securities and Exchange Commission ("SEC"), and
consequently, actual future events, operations, and results may differ
materially from the results discussed in the forward-looking statements.
Our expectations, beliefs, and projections are expressed in good faith,
and we believe there is a reasonable basis for them.
Factors that could cause actual results to differ materially from those
indicated by forward-looking statements include, among others, our
dependence on renewals of our membership-based services, the sale of
additional programs to existing members, and our ability to attract new
members; our potential failure to adapt to changing member needs and
demands or to compete successfully with other companies that offer
similar products and services; our potential failure to develop and
sell, or expand sales markets for our CEB Talent Assessment tools and
services; our potential inability to attract and retain a significant
number of highly skilled employees or successfully manage succession
planning issues; fluctuations in operating results; the implementation
of our business transformation initiative may be disruptive to our
operations, potential cost overruns could have material adverse effects
on our results of operations, and once this initiative is completed we
may not realize anticipated savings or operational benefits; our
potential inability to protect our intellectual property rights; our
potential inability to adequately maintain and protect our information
technology infrastructure and our member and client data; potential
confusion about our rebranding (including the roll-out of the CEB Talent
Assessment brand for what has been known previously as the SHL Talent
Measurement brand); our potential exposure to loss of revenue resulting
from our unconditional service guarantee; exposure to litigation related
to the content we provide; various factors that could affect our
estimated income tax rate or our ability to use our existing deferred
tax assets; changes in estimates, assumptions or revenue recognition
policies used to prepare our consolidated financial statements,
including those related to testing for potential goodwill impairment;
our potential inability to make, integrate, and maintain acquisitions
and investments; the amount and timing of the benefits expected from
acquisitions and investments; risks associated with our provision of
products and services to certain US government agencies; the risk that
we will be required to recognize additional impairments to the carrying
value of the significant goodwill and amortizable intangible asset
amounts included in our balance sheet as a result of our acquisitions,
which would require us to record charges that would reduce our reported
results; risks associated with our significant office space lease
obligations in Arlington, VA, including potential landlord or subtenant
defaults; our potential inability to effectively manage the risks
(including interest rate risk) associated with our existing
indebtedness, including the terms of and restrictions in our senior
secured credit facilities, as well as additional indebtedness we
incurred in connection with the Evanta acquisition or other indebtedness
we may incur in the future; our potential inability to effectively
manage the risks associated with our international operations, including
the risk of foreign currency exchange fluctuations; the potential
effects from the withdrawal of the United Kingdom from the European
Union; our potential inability to effectively anticipate, plan for, and
respond to changing economic and financial market conditions, especially
in light of ongoing uncertainty in the worldwide economy and the US
economy; and the impact of volatility in the trading price of our common
stock, including as a result of any decision to reduce or discontinue
dividends or share repurchases.
In addition, forward-looking statements may be affected by risks and
uncertainties associated with the acquisition of the Evanta business,
including that the businesses of CEB and Evanta may not be combined
successfully, or the combination may take longer or cost more to
accomplish than expected; we may not achieve anticipated operating and
cost synergies through combining the businesses of CEB and Evanta, or
those synergies may be realized less quickly than we anticipate; Evanta
may not achieve the results projected in its current 2016 full year
forecast; potential operating costs, customer loss, and business
disruption (including employee loss or turnover) following the
acquisition may be greater than expected and could negatively affect the
financial results and performance of Evanta; Evanta may not perform at
the level we are expecting, and as a result the anticipated positive
impact of the acquisition on the operations and future financial results
of CEB, including those reflected in our updated 2016 annual guidance
and our estimates for the third quarter of 2016, may not be achieved or
may be lower than expected and our leverage, which was increased in
connection with the acquisition, could materially and adversely affect
our financial conditional or operating flexibility and prevent us from
fulfilling our obligations under the Senior Secured Credit Facilities.
Various risks, uncertainties, and other important factors that could
cause our actual results to differ from our expected or historical
results are discussed more fully in the "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and "Risk
Factors" sections of our filings with the SEC, including, but not
limited to, our 2015 Annual Report on Form 10-K filed on February 26,
2016. The forward-looking statements in this press release are made as
of July 26, 2016, and we undertake no obligation to update any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
ABOUT CEB
CEB is a best practice insight and technology company. In partnership
with leading organizations around the globe, we develop innovative
solutions to drive corporate performance. CEB equips leaders at more
than 10,000 companies with the intelligence to effectively manage
talent, customers, and operations. CEB is a trusted partner to nearly
90% of the Fortune 500 and FTSE 100, and more than 70% of the Dow Jones
Asian Titans. More at cebglobal.com.
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CEB Inc. Segment Highlights (In
thousands, except percentages)
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Selected
Percentage
Changes
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Three Months Ended
June 30,
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Selected
Percentage
Changes
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Six Months Ended
June 30,
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2016
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2015
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2016
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2015
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CEB Segment (1)
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Revenue
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5.7
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%
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$
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192,195
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$
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181,773
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4.4
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%
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$
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370,172
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$
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354,667
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Adjusted revenue (3)
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10.4
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%
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$
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200,739
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$
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181,773
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7.0
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%
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$
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379,490
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$
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354,721
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Operating profit
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$
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20,184
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$
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37,453
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$
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43,594
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$
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68,388
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Adjusted EBITDA (3)
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8.6
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%
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$
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54,069
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$
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49,782
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4.7
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%
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$
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98,587
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$
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94,145
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Adjusted EBITDA margin (3)
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26.9
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%
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27.4
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%
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26.0
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%
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26.5
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%
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Contract Value (4)
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(1.2
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)%
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$
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659,582
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$
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667,649
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Constant currency Contract Value (5)
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(0.4
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)%
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$
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665,182
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Member institutions (6)
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3.3
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%
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7,211
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6,983
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Contract Value per member institution (6)
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(4.7
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)%
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$
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91,003
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$
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95,483
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Constant currency Contract Value per member institution (5)
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(4.7
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)%
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$
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90,952
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Wallet retention rate (7)
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88
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%
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94
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%
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Constant currency Wallet retention rate (5)
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88
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%
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CEB Talent Assessment Segment (2)
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Revenue
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0.4
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%
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$
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50,408
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$
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50,191
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(3.3
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)%
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$
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95,629
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$
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98,896
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Adjusted revenue (3)
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(0.9
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)%
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$
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50,408
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$
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50,880
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(4.3
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)%
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$
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95,629
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$
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99,950
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Operating (loss) profit
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$
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(5,606
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)
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$
|
1,385
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$
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(12,891
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)
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$
|
420
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Adjusted EBITDA (3)
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(1.2
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)%
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$
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10,446
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$
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10,576
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(2.4
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)%
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$
|
18,886
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$
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19,350
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Adjusted EBITDA margin (3)
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20.7
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%
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20.8
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%
|
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19.7
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%
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19.4
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%
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Contract Value (8)
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$
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105,819
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Wallet retention rate (9)
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97
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%
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102
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%
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(1) The CEB segment includes comprehensive data analysis,
research, and advisory services that align to executive leadership
roles and key recurring decisions and enable members to focus
efforts to address emerging and recurring business challenges
efficiently and effectively.
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(2) The CEB Talent Assessment segment includes the SHL products
and services of cloud-based solutions for talent assessment,
development, strategy, analytics, decision support, and
professional services that support those solutions, enabling
client access to data, analytics, and insights for assessing and
managing employees and applicants.
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(3) See "Non-GAAP Financial Measures" for further explanation.
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(4) We define "CEB segment Contract Value," at the end of the
quarter, as the aggregate annualized revenue attributed to all
agreements in effect on such date, without regard to the remaining
duration of any such agreement. CEB segment Contract Value does
not include the impact of Personnel Decision Research Institutes,
Inc. ("PDRI").
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(5) Calculated on a constant currency basis whereby financial
information in the current period for amounts recorded in
currencies other than the USD is translated into USD at the
average exchange rates in effect during the comparable period of
the prior year (rather than the actual exchange rates in effect
during the current year period).
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(6) We define "CEB segment Member institutions," at the end of the
quarter, as member institutions with Contract Value in excess of
$10,000. The same definition is applied to "CEB segment Contract
Value per member institution."
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(7) We define "CEB segment Wallet retention rate," at the end of
the quarter, as the total current year segment Contract Value from
prior year members as a percentage of the total prior year segment
Contract Value. The CEB segment Wallet retention rate does not
include the impact of PDRI.
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(8) We define "CEB Talent Assessment segment Contract Value," at
the end of the quarter, as the aggregate annualized revenue in
effect on such date, without regard to the remaining duration of
any such agreement, attributed to all subscription agreements for
online product access plus the aggregate annual revenue attributed
to all advanced purchases of online testing units.
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(9) We define "CEB Talent Assessment segment Wallet retention
rate," at the end of the quarter, on a constant currency basis, as
the last 12 months of total segment Adjusted revenue from prior
year customers as a percentage of the prior 12 months of total
segment Adjusted revenue.
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CEB Inc. Unaudited Consolidated Statements of
Operations (In thousands, except per share data)
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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2016
|
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2015
|
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2016
|
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2015
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Revenue (1)
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$
|
242,603
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$
|
231,964
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$
|
465,801
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$
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453,563
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Costs and expenses
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Cost of services
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91,259
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82,432
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170,996
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161,091
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Member relations and marketing
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70,426
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65,509
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138,409
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131,594
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General and administrative
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29,964
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|
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28,293
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|
|
|
58,051
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|
|
|
57,098
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Depreciation and amortization (2)
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|
|
26,265
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|
|
|
16,892
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|
|
|
51,891
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|
|
|
33,734
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Business transformation costs (3)
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6,260
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-
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9,548
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-
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Acquisition related costs (4)
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3,662
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-
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5,119
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-
|
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Restructuring costs
|
|
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189
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-
|
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|
1,084
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|
|
1,238
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Total costs and expenses
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228,025
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|
193,126
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|
435,098
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|
|
|
384,755
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Operating profit
|
|
|
14,578
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|
|
38,838
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|
|
30,703
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|
68,808
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Other (expense) income, net
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|
|
|
|
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Debt modification costs
|
|
|
(1,656
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)
|
|
|
(4,775
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)
|
|
|
(1,656
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)
|
|
|
(4,775
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)
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Interest income and other (5)
|
|
|
5,066
|
|
|
|
(5,360
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)
|
|
|
3,793
|
|
|
|
366
|
|
Interest expense
|
|
|
(7,296
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)
|
|
|
(4,787
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)
|
|
|
(13,092
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)
|
|
|
(9,226
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)
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Other (expense) income, net
|
|
|
(3,886
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)
|
|
|
(14,922
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)
|
|
|
(10,955
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)
|
|
|
(13,635
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)
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Income before provision for income taxes
|
|
|
10,692
|
|
|
|
23,916
|
|
|
|
19,748
|
|
|
|
55,173
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Provision for income taxes
|
|
|
2,946
|
|
|
|
704
|
|
|
|
7,459
|
|
|
|
12,871
|
|
Net income
|
|
$
|
7,746
|
|
|
$
|
23,212
|
|
|
$
|
12,289
|
|
|
$
|
42,302
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
0.24
|
|
|
$
|
0.69
|
|
|
$
|
0.38
|
|
|
$
|
1.26
|
|
Diluted earnings per share
|
|
$
|
0.24
|
|
|
$
|
0.69
|
|
|
$
|
0.38
|
|
|
$
|
1.25
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
32,198
|
|
|
|
33,458
|
|
|
|
32,423
|
|
|
|
33,516
|
|
Diluted
|
|
|
32,344
|
|
|
|
33,694
|
|
|
|
32,642
|
|
|
|
33,827
|
|
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(1) Net of a reduction to reflect the impact of the deferred
revenue fair value adjustment of $8.5 million and $0.7 million in
the three months ended June 30, 2016 and 2015 and $9.3 million and
$1.1 million in the six months ended June 30, 2016 and 2015,
respectively. Includes $11.4 million of revenue from Evanta in the
three and six months ended June 30, 2016.
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(2) Included $7.6 million and $15.2 million of additional
amortization expense in the three and six months ended
June 30, 2016, respectively, associated with the change in the
estimated useful life of the SHL trade name in the fourth quarter
of 2015.
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(3) Business transformation costs relate to the development and
implementation of cloud-based computing systems, which will
consolidate and standardize our sales force automation and
financial systems.
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(4) Acquisition related costs primarily related to transaction and
severance costs associated with the acquisitions in 2016 and 2015.
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(5) Interest income and other in the three months ended June 30,
2016 included a $4.8 million net foreign currency gain, a
$0.5 million increase in the fair value of deferred compensation
plan assets, $0.2 million of interest income, and a $0.1 million
gain on other investments, net offset by $0.5 of other losses.
Interest income and other in the three months ended June 30, 2015
included $0.1 million of interest income offset by a $4.7 million
net foreign currency loss, a $0.2 million decrease in the fair
value of deferred compensation plan, $0.1 million of equity method
investment losses and $0.5 million of other losses. Interest
income and other in the six months ended June 30, 2016 included a
$4.0 million net foreign currency gain, a $1.0 million increase in
the fair value of deferred compensation plan assets, and
$0.3 million of interest income offset by $0.3 million of equity
method investment losses, $0.8 million of loss of other
investments, net and $0.4 million of other losses. Interest income
and other in the six months ended June 30, 2015 included a $1.5
million net foreign currency gain, $0.2 million of interest
income, and a $0.2 million increase in the fair value of deferred
compensation plan assets offset by $0.9 million of equity method
investment losses and $0.6 million of other losses.
|
|
|
|
|
|
|
|
CEB Inc. Condensed Consolidated Balance Sheets (In
thousands)
|
|
|
|
|
June 30, 2016
|
|
December 31, 2015
|
|
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
139,717
|
|
|
$
|
113,329
|
Accounts receivable, net (1)
|
|
|
|
213,513
|
|
|
|
285,048
|
Deferred incentive compensation
|
|
|
|
24,274
|
|
|
|
23,484
|
Prepaid expenses and other current assets
|
|
|
|
44,382
|
|
|
|
27,651
|
Total current assets
|
|
|
|
421,886
|
|
|
|
449,512
|
Deferred income taxes, net
|
|
|
|
7,282
|
|
|
|
16,491
|
Property and equipment, net
|
|
|
|
98,057
|
|
|
|
102,337
|
Goodwill
|
|
|
|
659,346
|
|
|
|
458,409
|
Intangible assets, net
|
|
|
|
229,820
|
|
|
|
230,680
|
Other non-current assets
|
|
|
|
92,772
|
|
|
|
81,123
|
Total assets
|
|
|
$
|
1,509,163
|
|
|
$
|
1,338,552
|
Liabilities and stockholders' (deficit) equity
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
$
|
86,895
|
|
|
$
|
88,407
|
Accrued incentive compensation
|
|
|
|
38,358
|
|
|
|
59,947
|
Deferred revenue (2)
|
|
|
|
442,378
|
|
|
|
449,694
|
Debt - current portion
|
|
|
|
7,866
|
|
|
|
4,948
|
Total current liabilities
|
|
|
|
575,497
|
|
|
|
602,996
|
Deferred income taxes, net
|
|
|
|
22,640
|
|
|
|
27,869
|
Other liabilities
|
|
|
|
112,598
|
|
|
|
107,592
|
Debt - long term
|
|
|
|
870,142
|
|
|
|
556,418
|
Total liabilities
|
|
|
|
1,580,877
|
|
|
|
1,294,875
|
Total stockholders' (deficit) equity
|
|
|
|
(71,714
|
)
|
|
|
43,677
|
Total liabilities and stockholders' (deficit) equity
|
|
|
$
|
1,509,163
|
|
|
$
|
1,338,552
|
|
(1) Included accounts receivable, net of $64.4 million at both
June 30, 2016 and December 31, 2015 related to the CEB Talent
Assessment segment.
|
(2) Included deferred revenue of 11.8 million at June 30, 2016 for
Evanta and $69.4 million and $68.9 million at June 30, 2016 and
December 31, 2015, respectively, related to the CEB Talent
Assessment segment.
|
|
|
|
|
|
|
|
CEB Inc. Unaudited Consolidated Statements of Cash
Flows (In thousands)
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
12,289
|
|
|
|
$
|
42,302
|
|
Adjustments to reconcile net income to net cash flows provided by
operating activities
|
|
|
|
|
|
|
|
Debt modification costs
|
|
|
|
|
1,656
|
|
|
|
|
4,775
|
|
Loss on other investments, net
|
|
|
|
|
797
|
|
|
|
|
-
|
|
Equity method investment loss
|
|
|
|
|
334
|
|
|
|
|
898
|
|
Depreciation and amortization
|
|
|
|
|
51,891
|
|
|
|
|
33,734
|
|
Amortization of credit facility issuance costs
|
|
|
|
|
843
|
|
|
|
|
1,242
|
|
Deferred income taxes
|
|
|
|
|
(5,697
|
)
|
|
|
|
797
|
|
Share-based compensation
|
|
|
|
|
9,224
|
|
|
|
|
9,003
|
|
Excess tax benefits from share-based compensation arrangements
|
|
|
|
|
(1,043
|
)
|
|
|
|
(3,989
|
)
|
Net foreign currency remeasurement gain
|
|
|
|
|
(6,548
|
)
|
|
|
|
(857
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
|
80,756
|
|
|
|
|
86,697
|
|
Deferred incentive compensation
|
|
|
|
|
(1,396
|
)
|
|
|
|
(951
|
)
|
Prepaid expenses and other current assets
|
|
|
|
|
(17,079
|
)
|
|
|
|
(27,119
|
)
|
Other non-current assets
|
|
|
|
|
(7,058
|
)
|
|
|
|
(9,404
|
)
|
Accounts payable and accrued liabilities
|
|
|
|
|
(4,496
|
)
|
|
|
|
(18,032
|
)
|
Accrued incentive compensation
|
|
|
|
|
(21,537
|
)
|
|
|
|
(25,098
|
)
|
Deferred revenue
|
|
|
|
|
(14,285
|
)
|
|
|
|
(8,948
|
)
|
Other liabilities
|
|
|
|
|
5,091
|
|
|
|
|
208
|
|
Net cash flows provided by operating activities
|
|
|
|
|
83,742
|
|
|
|
|
85,258
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
|
(11,209
|
)
|
|
|
|
(13,401
|
)
|
Cost method and other investments
|
|
|
|
|
(4,300
|
)
|
|
|
|
(2,589
|
)
|
Acquisition of businesses, net of cash acquired
|
|
|
|
|
(267,890
|
)
|
|
|
|
(5,808
|
)
|
Net cash flows used in investing activities
|
|
|
|
|
(283,399
|
)
|
|
|
|
(21,798
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Proceeds from issuance of senior notes
|
|
|
|
|
-
|
|
|
|
|
250,000
|
|
Borrowings from Senior Secured Credit Facilities
|
|
|
|
|
385,000
|
|
|
|
|
-
|
|
Debt payments
|
|
|
|
|
(68,232
|
)
|
|
|
|
(257,250
|
)
|
Debt issuance costs
|
|
|
|
|
(4,220
|
)
|
|
|
|
(5,275
|
)
|
Proceeds from issuance of common stock under the employee stock
purchase plan
|
|
|
|
|
827
|
|
|
|
|
757
|
|
Excess tax benefits from share-based compensation arrangements
|
|
|
|
|
1,043
|
|
|
|
|
3,989
|
|
Purchase of treasury shares
|
|
|
|
|
(53,568
|
)
|
|
|
|
(12,623
|
)
|
Withholding of shares to satisfy minimum employee tax withholding
for equity awards
|
|
|
|
|
(5,053
|
)
|
|
|
|
(8,302
|
)
|
Payment of dividends
|
|
|
|
|
(26,632
|
)
|
|
|
|
(25,115
|
)
|
Net cash flows provided by (used in) financing activities
|
|
|
|
|
229,165
|
|
|
|
|
(53,819
|
)
|
Effect of exchange rates on cash
|
|
|
|
|
(3,120
|
)
|
|
|
|
(432
|
)
|
Net increase in cash and cash equivalents
|
|
|
|
|
26,388
|
|
|
|
|
9,209
|
|
Cash and cash equivalents, beginning of year
|
|
|
|
|
113,329
|
|
|
|
|
114,934
|
|
Cash and cash equivalents, end of period
|
|
|
|
$
|
139,717
|
|
|
|
$
|
124,143
|
|
|
|
|
|
|
|
|
CEB Inc. Reconciliation of Non-GAAP Financial Measures
We believe that our non-GAAP financial measures are relevant and useful
supplemental information for evaluating our results of operations as
compared from period to period and as compared to our competitors. We
use these non-GAAP financial measures for internal budgeting and other
managerial purposes, including comparison against our competitors, when
publicly providing our business outlook, and as a measurement for
potential acquisitions. These non-GAAP financial measures are not
defined in the same manner by all companies and therefore may not be
comparable to other similarly titled measures used by other companies.
Our non-GAAP financial measures reflect adjustments based on the
following items, as well as the related income tax effects:
-
Certain business combination accounting entries
and expenses related to acquisitions: We have adjusted for the
impact of the deferred revenue fair value adjustment, amortization of
acquisition related intangibles, and acquisition related costs. We
incurred transaction and certain other expenses in connection with our
acquisitions, which we generally would not have otherwise incurred in
the periods presented as a part of our continuing operations. We
believe that excluding these acquisition related items from our
non-GAAP financial measures provides useful supplemental information
to our investors and is important in illustrating what our core
operating results would have been had we not incurred these
acquisition related items since the nature, size, and number of
acquisitions can vary from period to period and because they are not
considered by management in making operating decisions.
-
Net non-operating foreign currency gain (loss):
Beginning in the first quarter of 2015, we adjusted for the impact of
the net non-operating foreign currency gain (loss) included in other
(expense) income. These items primarily result from the remeasurement
of foreign currency cash balances held by CEB US and subsidiaries with
the USD as their functional currency, USD cash balances held by
subsidiaries with a functional currency other than the USD, certain
intercompany notes, and the balance sheets of non-US subsidiaries
whose functional currency was the USD prior to the revision of our
corporate structure on October 1, 2015 to geographically align our
intellectual property with our US and global commercial operations,
resulting in a significant change to the economic facts and
circumstances for subsidiaries that were previously dependent on the
parent company for financing. We believe this information is useful to
investors to facilitate comparison of operating results and better
identify trends in our business.
-
Business transformation costs: Beginning
in the first quarter of 2016, we adjusted for the impact of costs
associated with our business transformation initiative, which is a
multiyear effort that will consolidate and standardize our sales force
automation and financial systems. These costs include software license
fees and third-party vendor costs related to the implementation and
development of the systems, and costs related to employees that are
devoted to the initiative. Under new accounting rules in effect as of
January 1, 2016, the majority of costs related to the development and
implementation of cloud-based computing systems now have to be
expensed in the current period as they are incurred instead of being
capitalized and depreciated over time. We believe that excluding these
items from our non-GAAP financial measures provides useful
supplemental information to our investors and is important in
illustrating what our core operating results would have been had we
not incurred these items. We exclude these items because management
does not believe they correlate to the ongoing operating results of
the business.
-
Debt modification costs, gain (loss) on other
investments, net, equity method investment gain (loss), restructuring
costs, impairment costs, and gain on cost method investment:
From time to time, we have events or transactions outside of our core
operations that affect our net income, such as modifying our debt and
investing in private entities. These activities are not part of our
normal operations, but rather are transactions we enter into when we
feel it is to our advantage to maximize opportunities that will
improve our overall future financial position and results of
operations. We exclude these items when evaluating our results of
operations because management does not believe they correlate to the
ordinary course operating expenditures or operating results of the
business. We believe that excluding these items from our non-GAAP
financial measures provides useful supplemental information to our
investors and is important in illustrating what our core operating
results would have been had we not incurred these items.
-
Share-based compensation: Although
share-based compensation is a key incentive offered to our employees,
we evaluate our operating results excluding such expense. We believe
the exclusion of this expense facilitates the ability of our investors
to compare our operating results with those of other peer companies,
many of which also exclude such expense in determining their non-GAAP
measures, given varying valuation methodologies and assumptions, and
the variety and amount of award types that may be utilized by
different companies.
-
Adjusted effective tax rate: Beginning in
the third quarter of 2015, we adjusted for the impact of certain
discrete items included in the effective tax rate, including items
unrelated to the current year, changes in statutory tax rates, or
other items that are not indicative of our ongoing operations. We
exclude these items because management believes it will facilitate the
comparison of the annual effective tax rate over time. The Adjusted
effective tax rate is calculated by dividing the adjusted provision
for income taxes, which excludes discrete items and the tax effects of
the other non-GAAP adjustments (using statutory rates), by adjusted
income before the provision for income taxes.
We are a global company that reports financial information in USD.
Foreign currency exchange rate fluctuations affect the amounts reported
from translating foreign revenues and expenses into USD. These rate
fluctuations can have a significant effect on our reported operating
results. As a supplement to our reported operating results, we present
constant currency financial information. We use constant currency
financial information to provide a framework to assess how our business
performed excluding the effects of changes in foreign currency
translation rates. Management believes this information is useful to
investors to facilitate comparison of operating results and better
identify trends in our businesses. To calculate financial information on
a constant currency basis, financial information in the current period
for amounts recorded in currencies other than the USD is translated into
USD at the average exchange rates that were in effect during the
comparable period of the prior year (rather than the actual exchange
rates in effect during the current year period).
These non-GAAP measures may be considered in addition to results
prepared in accordance with GAAP, but they should not be considered a
substitute for, or superior to, GAAP results. We intend to continue to
provide these non-GAAP financial measures as part of our future earnings
discussions and, therefore, the inclusion of these non-GAAP financial
measures will provide consistency in our financial reporting.
With respect to our 2016 annual and quarterly guidance, reconciliations
of net income to Adjusted EBITDA, net income to Adjusted net income, and
GAAP diluted earnings per share to Non-GAAP diluted earnings per share
as projected for 2016 are not provided because we cannot, without
unreasonable effort, estimate or predict with certainty various
components of net income and GAAP diluted earnings per share, including
the net non-operating foreign currency (gain) loss, acquisition related
costs, and discrete tax items, which components could significantly
impact such financial measures.
A reconciliation of each of the non-GAAP measures to the most directly
comparable GAAP measure is provided below (in thousands, except per
share data).
|
Adjusted Revenue
|
|
|
|
|
|
|
Three Months Ended June 30, 2016
|
|
|
|
Three Months Ended June 30, 2015
|
|
|
|
|
|
CEB
|
|
|
CEB Talent
Assessment
|
|
|
Total
|
|
|
|
CEB
|
|
|
CEB Talent
Assessment
|
|
|
Total
|
Revenue
|
|
|
|
|
$
|
192,195
|
|
|
$
|
50,408
|
|
|
$
|
242,603
|
|
|
|
$
|
181,773
|
|
|
$
|
50,191
|
|
|
$
|
231,964
|
Impact of the deferred revenue fair value adjustment
|
|
|
|
|
|
8,544
|
|
|
|
-
|
|
|
|
8,544
|
|
|
|
|
-
|
|
|
|
689
|
|
|
|
689
|
Adjusted revenue
|
|
|
|
|
$
|
200,739
|
|
|
$
|
50,408
|
|
|
$
|
251,147
|
|
|
|
$
|
181,773
|
|
|
$
|
50,880
|
|
|
$
|
232,653
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
Six Months Ended June 30, 2015
|
|
|
|
|
|
CEB
|
|
|
CEB Talent
Assessment
|
|
|
Total
|
|
|
|
CEB
|
|
|
CEB Talent
Assessment
|
|
|
Total
|
Revenue
|
|
|
|
|
$
|
370,172
|
|
|
$
|
95,629
|
|
|
$
|
465,801
|
|
|
|
$
|
354,667
|
|
|
$
|
98,896
|
|
|
$
|
453,563
|
Impact of the deferred revenue fair value adjustment
|
|
|
|
|
|
9,318
|
|
|
|
-
|
|
|
|
9,318
|
|
|
|
|
54
|
|
|
|
1,054
|
|
|
|
1,108
|
Adjusted revenue
|
|
|
|
|
$
|
379,490
|
|
|
$
|
95,629
|
|
|
$
|
475,119
|
|
|
|
$
|
354,721
|
|
|
$
|
99,950
|
|
|
$
|
454,671
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
Three Months Ended June 30, 2016
|
|
|
|
Three Months Ended June 30, 2015
|
|
|
|
|
|
CEB
|
|
|
CEB Talent
Assessment
|
|
|
Total
|
|
|
|
CEB
|
|
|
CEB Talent
Assessment
|
|
|
Total
|
Net income
|
|
|
|
|
|
|
|
|
|
|
$
|
7,746
|
|
|
|
|
|
|
|
|
|
|
$
|
23,212
|
|
Provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
|
2,946
|
|
|
|
|
|
|
|
|
|
|
|
704
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
|
7,144
|
|
|
|
|
|
|
|
|
|
|
|
4,693
|
|
Debt modification costs
|
|
|
|
|
|
|
|
|
|
|
|
1,656
|
|
|
|
|
|
|
|
|
|
|
|
4,775
|
|
Other (income) expense, net
|
|
|
|
|
|
|
|
|
|
|
|
(4,914
|
)
|
|
|
|
|
|
|
|
|
|
|
5,454
|
|
Operating profit (loss)
|
|
|
|
|
$
|
20,184
|
|
|
|
$
|
(5,606
|
)
|
|
|
|
14,578
|
|
|
|
|
$
|
37,453
|
|
|
|
$
|
1,385
|
|
|
|
|
38,838
|
|
Other income (expense), net
|
|
|
|
|
|
3,833
|
|
|
|
|
1,081
|
|
|
|
|
4,914
|
|
|
|
|
|
(3,285
|
)
|
|
|
|
(2,169
|
)
|
|
|
|
(5,454
|
)
|
Net non-operating foreign currency (gain) loss
|
|
|
|
|
|
(4,039
|
)
|
|
|
|
(771
|
)
|
|
|
|
(4,810
|
)
|
|
|
|
|
2,675
|
|
|
|
|
2,057
|
|
|
|
|
4,732
|
|
Gain on other investments, net
|
|
|
|
|
|
(93
|
)
|
|
|
|
-
|
|
|
|
|
(93
|
)
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Equity method investment (gain) loss
|
|
|
|
|
|
(25
|
)
|
|
|
|
25
|
|
|
|
|
-
|
|
|
|
|
|
6
|
|
|
|
|
55
|
|
|
|
|
61
|
|
Depreciation and amortization
|
|
|
|
|
|
11,245
|
|
|
|
|
15,020
|
|
|
|
|
26,265
|
|
|
|
|
|
8,811
|
|
|
|
|
8,081
|
|
|
|
|
16,892
|
|
Business transformation costs
|
|
|
|
|
|
6,260
|
|
|
|
|
-
|
|
|
|
|
6,260
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Impact of the deferred revenue fair value adjustment
|
|
|
|
|
|
8,544
|
|
|
|
|
-
|
|
|
|
|
8,544
|
|
|
|
|
|
-
|
|
|
|
|
689
|
|
|
|
|
689
|
|
Acquisition related costs
|
|
|
|
|
|
3,662
|
|
|
|
|
-
|
|
|
|
|
3,662
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Restructuring costs
|
|
|
|
|
|
68
|
|
|
|
|
121
|
|
|
|
|
189
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Share-based compensation
|
|
|
|
|
|
4,430
|
|
|
|
|
576
|
|
|
|
|
5,006
|
|
|
|
|
|
4,122
|
|
|
|
|
478
|
|
|
|
|
4,600
|
|
Adjusted EBITDA
|
|
|
|
|
$
|
54,069
|
|
|
|
$
|
10,446
|
|
|
|
$
|
64,515
|
|
|
|
|
$
|
49,782
|
|
|
|
$
|
10,576
|
|
|
|
$
|
60,358
|
|
Adjusted EBITDA margin
|
|
|
|
|
|
26.9
|
%
|
|
|
|
20.7
|
%
|
|
|
|
25.7
|
%
|
|
|
|
|
27.4
|
%
|
|
|
|
20.8
|
%
|
|
|
|
25.9
|
%
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
Six Months Ended June 30, 2015
|
|
|
|
|
|
CEB
|
|
|
CEB Talent
Assessment
|
|
|
Total
|
|
|
CEB
|
|
|
CEB Talent
Assessment
|
|
|
Total
|
Net income
|
|
|
|
|
|
|
|
|
|
|
$
|
12,289
|
|
|
|
|
|
|
|
|
|
$
|
42,302
|
|
Provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
|
7,459
|
|
|
|
|
|
|
|
|
|
|
12,871
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
|
12,760
|
|
|
|
|
|
|
|
|
|
|
9,037
|
|
Debt modification costs
|
|
|
|
|
|
|
|
|
|
|
|
1,656
|
|
|
|
|
|
|
|
|
|
|
4,775
|
|
Other (income) expense, net
|
|
|
|
|
|
|
|
|
|
|
|
(3,461
|
)
|
|
|
|
|
|
|
|
|
|
(177
|
)
|
Operating profit (loss)
|
|
|
|
|
$
|
43,594
|
|
|
|
$
|
(12,891
|
)
|
|
|
|
30,703
|
|
|
|
$
|
68,388
|
|
|
|
$
|
420
|
|
|
|
|
68,808
|
|
Other income (expense), net
|
|
|
|
|
|
1,763
|
|
|
|
|
1,698
|
|
|
|
|
3,461
|
|
|
|
|
123
|
|
|
|
|
54
|
|
|
|
|
177
|
|
Net non-operating foreign currency (gain) loss
|
|
|
|
|
|
(2,464
|
)
|
|
|
|
(1,542
|
)
|
|
|
|
(4,006
|
)
|
|
|
|
(1,135
|
)
|
|
|
|
(336
|
)
|
|
|
|
(1,471
|
)
|
Loss on other investments, net
|
|
|
|
|
|
797
|
|
|
|
|
-
|
|
|
|
|
797
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Equity method investment loss
|
|
|
|
|
|
118
|
|
|
|
|
216
|
|
|
|
|
334
|
|
|
|
|
649
|
|
|
|
|
249
|
|
|
|
|
898
|
|
Depreciation and amortization
|
|
|
|
|
|
21,958
|
|
|
|
|
29,933
|
|
|
|
|
51,891
|
|
|
|
|
17,633
|
|
|
|
|
16,101
|
|
|
|
|
33,734
|
|
Business transformation costs
|
|
|
|
|
|
9,548
|
|
|
|
|
-
|
|
|
|
|
9,548
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Impact of the deferred revenue fair value adjustment
|
|
|
|
|
|
9,318
|
|
|
|
|
-
|
|
|
|
|
9,318
|
|
|
|
|
54
|
|
|
|
|
1,054
|
|
|
|
|
1,108
|
|
Acquisition related costs
|
|
|
|
|
|
5,119
|
|
|
|
|
-
|
|
|
|
|
5,119
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Restructuring costs
|
|
|
|
|
|
666
|
|
|
|
|
418
|
|
|
|
|
1,084
|
|
|
|
|
290
|
|
|
|
|
948
|
|
|
|
|
1,238
|
|
Share-based compensation
|
|
|
|
|
|
8,170
|
|
|
|
|
1,054
|
|
|
|
|
9,224
|
|
|
|
|
8,143
|
|
|
|
|
860
|
|
|
|
|
9,003
|
|
Adjusted EBITDA
|
|
|
|
|
$
|
98,587
|
|
|
|
$
|
18,886
|
|
|
|
$
|
117,473
|
|
|
|
$
|
94,145
|
|
|
|
$
|
19,350
|
|
|
|
$
|
113,495
|
|
Adjusted EBITDA margin
|
|
|
|
|
|
26.0
|
%
|
|
|
|
19.7
|
%
|
|
|
|
24.7
|
%
|
|
|
|
26.5
|
%
|
|
|
|
19.4
|
%
|
|
|
|
25.0
|
%
|
|
|
|
|
|
|
|
CEB Inc. Reconciliation of Non-GAAP Financial
Measures (Continued)
|
|
Adjusted Net Income
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net income
|
|
|
$
|
7,746
|
|
|
$
|
23,212
|
|
|
$
|
12,289
|
|
|
$
|
42,302
|
|
Net non-operating foreign currency (gain) loss (1)
|
|
|
|
(4,298
|
)
|
|
|
4,182
|
|
|
|
(3,481
|
)
|
|
|
(1,206
|
)
|
Debt modification costs (1)
|
|
|
|
969
|
|
|
|
2,841
|
|
|
|
969
|
|
|
|
2,841
|
|
(Gain) loss on other investments, net (1)
|
|
|
|
(54
|
)
|
|
|
-
|
|
|
|
467
|
|
|
|
-
|
|
Equity method investment loss (1)
|
|
|
|
10
|
|
|
|
59
|
|
|
|
285
|
|
|
|
636
|
|
Amortization of acquisition related intangibles (1)
|
|
|
|
13,044
|
|
|
|
6,307
|
|
|
|
26,062
|
|
|
|
12,675
|
|
Business transformation costs (1)
|
|
|
|
4,482
|
|
|
|
-
|
|
|
|
6,405
|
|
|
|
-
|
|
Impact of the deferred revenue fair value adjustment (1)
|
|
|
|
5,050
|
|
|
|
517
|
|
|
|
5,582
|
|
|
|
827
|
|
Acquisition related costs (1)
|
|
|
|
2,150
|
|
|
|
-
|
|
|
|
3,017
|
|
|
|
-
|
|
Restructuring costs (1)
|
|
|
|
149
|
|
|
|
-
|
|
|
|
754
|
|
|
|
860
|
|
Share-based compensation (1)
|
|
|
|
3,054
|
|
|
|
2,865
|
|
|
|
5,640
|
|
|
|
5,598
|
|
Discrete tax items (2)
|
|
|
|
(778
|
)
|
|
|
(7,136
|
)
|
|
|
418
|
|
|
|
(7,669
|
)
|
Adjusted net income
|
|
|
$
|
31,524
|
|
|
$
|
32,847
|
|
|
$
|
58,407
|
|
|
$
|
56,864
|
|
|
|
Non-GAAP Diluted Earnings per Share
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Diluted earnings per share
|
|
|
$
|
0.24
|
|
|
$
|
0.69
|
|
|
$
|
0.38
|
|
|
$
|
1.25
|
|
Net non-operating foreign currency (gain) loss (1)
|
|
|
|
(0.13
|
)
|
|
|
0.12
|
|
|
|
(0.11
|
)
|
|
|
(0.04
|
)
|
Debt modification costs (1)
|
|
|
|
0.03
|
|
|
|
0.08
|
|
|
|
0.03
|
|
|
|
0.08
|
|
(Gain) loss on other investments, net (1)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
-
|
|
Equity method investment loss (1)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
0.02
|
|
Amortization of acquisition related intangibles (1)
|
|
|
|
0.40
|
|
|
|
0.19
|
|
|
|
0.81
|
|
|
|
0.37
|
|
Business transformation costs (1)
|
|
|
|
0.13
|
|
|
|
-
|
|
|
|
0.20
|
|
|
|
-
|
|
Impact of the deferred revenue fair value adjustment (1)
|
|
|
|
0.16
|
|
|
|
0.02
|
|
|
|
0.17
|
|
|
|
0.03
|
|
Acquisition related costs (1)
|
|
|
|
0.07
|
|
|
|
-
|
|
|
|
0.09
|
|
|
|
-
|
|
Restructuring costs (1)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.02
|
|
|
|
0.03
|
|
Share-based compensation (1)
|
|
|
|
0.09
|
|
|
|
0.09
|
|
|
|
0.17
|
|
|
|
0.17
|
|
Discrete tax items (2)
|
|
|
|
(0.02
|
)
|
|
|
(0.22
|
)
|
|
|
0.01
|
|
|
|
(0.23
|
)
|
Non-GAAP diluted earnings per share
|
|
|
$
|
0.97
|
|
|
$
|
0.97
|
|
|
$
|
1.79
|
|
|
$
|
1.68
|
|
|
(1) Adjustments are net of the annual estimated income tax effect
using statutory rates based on the relative amounts allocated to
each jurisdiction in the applicable period. The following income
tax rates were used: 13% in 2016 and 18% in 2015 for the net
non-operating foreign currency (gain) loss; 42% in 2016 and 40% in
2015 for debt modification costs; 41% in 2016 for (gain) loss on
other investments, net; 15% in 2016 and 29% in 2015 for the equity
method investment loss; 26% in 2016 and 29% in 2015 for the
amortization of acquisition related intangibles; 33% in 2016 for
business transformation costs; 40% in 2016 and 26% in 2015 for the
impact of the deferred revenue fair value adjustment; 41% in 2016
for acquisition related costs; 30% in 2016 and 31% in 2015 for
restructuring costs; and 39% in 2016 and 38% in 2015 for
share-based compensation.
|
|
(2) In the three months ended June 30, 2016, the discrete tax
benefit related to a $0.5 million release of valuation allowance
and $0.3 million from state tax law changes. In the six months
ended June 30, 2016, these amounts were more than offset by
discrete tax expense of $0.8 million from changes in tax planning
strategies and a $0.4 million increase in reserves for uncertain
tax positions. In the three and six months ended June 30, 2015,
the discrete tax benefit related to $4.6 million from research and
development credits and domestic manufacturing deductions claimed
in 2015 affecting prior year tax returns and $1.9 million related
to a change in an election to claim foreign tax credits that were
previously taken as deductions. In addition, there was $0.6
million and $1.2 million related to changes in tax planning
strategies in the three and six months ended June 30, 2015,
respectively.
|
|
|
|
|
|
|
|
CEB Inc. Reconciliation of Non-GAAP Financial
Measures (Continued)
|
|
Adjusted Effective Tax Rate
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Effective tax rate
|
|
|
|
27.6
|
%
|
|
|
2.9
|
%
|
|
|
37.8
|
%
|
|
|
23.3
|
%
|
Effect on tax rate of discrete items
|
|
|
|
1.6
|
%
|
|
|
15.0
|
%
|
|
|
(0.5
|
)%
|
|
|
8.7
|
%
|
Effect on tax rate of non-GAAP adjustments using statutory rates
|
|
|
|
6.0
|
%
|
|
|
13.1
|
%
|
|
|
(3.7
|
)%
|
|
|
3.8
|
%
|
Adjusted effective tax rate
|
|
|
|
35.2
|
%
|
|
|
31.0
|
%
|
|
|
33.6
|
%
|
|
|
35.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2016
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
|
CEB
|
|
|
CEB Talent
Assessment
|
|
|
Total
|
|
|
CEB
|
|
|
CEB Talent
Assessment
|
|
|
Total
|
Adjusted revenue
|
|
|
|
$
|
200,739
|
|
|
|
$
|
50,408
|
|
|
|
$
|
251,147
|
|
|
|
$
|
379,490
|
|
|
|
$
|
95,629
|
|
|
|
$
|
475,119
|
|
Currency exchange rate fluctuations
|
|
|
|
|
644
|
|
|
|
|
1,509
|
|
|
|
|
2,153
|
|
|
|
|
2,068
|
|
|
|
|
3,543
|
|
|
|
|
5,611
|
|
Constant currency Adjusted revenue
|
|
|
|
$
|
201,383
|
|
|
|
$
|
51,917
|
|
|
|
$
|
253,300
|
|
|
|
$
|
381,558
|
|
|
|
$
|
99,172
|
|
|
|
$
|
480,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) from prior year
|
|
|
|
|
10.8
|
%
|
|
|
|
2.0
|
%
|
|
|
|
8.9
|
%
|
|
|
|
7.6
|
%
|
|
|
|
(0.8
|
)%
|
|
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2016
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
|
CEB
|
|
|
CEB Talent
Assessment
|
|
|
Total
|
|
|
CEB
|
|
|
CEB Talent
Assessment
|
|
|
Total
|
Adjusted EBITDA
|
|
|
|
$
|
54,069
|
|
|
|
$
|
10,446
|
|
|
|
$
|
64,515
|
|
|
|
$
|
98,587
|
|
|
|
$
|
18,886
|
|
|
|
$
|
117,473
|
|
Currency exchange rate fluctuations
|
|
|
|
|
(873
|
)
|
|
|
|
117
|
|
|
|
|
(756
|
)
|
|
|
|
(1,172
|
)
|
|
|
|
613
|
|
|
|
|
(559
|
)
|
Constant currency Adjusted EBITDA
|
|
|
|
$
|
53,196
|
|
|
|
$
|
10,563
|
|
|
|
$
|
63,759
|
|
|
|
$
|
97,415
|
|
|
|
$
|
19,499
|
|
|
|
$
|
116,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) from prior year
|
|
|
|
|
6.9
|
%
|
|
|
|
(0.1
|
)%
|
|
|
|
5.6
|
%
|
|
|
|
3.5
|
%
|
|
|
|
0.8
|
%
|
|
|
|
3.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant currency Adjusted EBITDA margin
|
|
|
|
|
26.4
|
%
|
|
|
|
20.3
|
%
|
|
|
|
25.2
|
%
|
|
|
|
25.5
|
%
|
|
|
|
19.7
|
%
|
|
|
|
24.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160726006477/en/
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