The Thomson Corporation Updates 2001 Revenue and EBITDA Guidance.Business Editors TORONTO--(BUSINESS WIRE)--Oct. 17, 2001 The Thomson Corporation (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :TOC) today updated its revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become guidance for the full year ending December 31, 2001 reflecting the impact of September 11 events and changing market conditions. In addition, Thomson provided details regarding the integration of recently acquired Harcourt businesses. Previously, Thomson provided guidance on its expected performance excluding Harcourt. Consistent with this approach, Thomson now anticipates revenues from ongoing operations for the full year 2001, excluding the businesses acquired from Harcourt, will grow approximately 10 to 13 percent, compared to earlier expectations of 15 percent. These revised revenue expectations are a result of weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. market conditions
across all groups, with the greatest impact coming from Thomson
Financial Thomson FinancialA major provider of information, analytical tools, and consulting services to the financial community. The firm, a division of Thomson Corporation, is best known to investors for its First Call segment, which publishes consensus earnings . EBITDA is still expected to increase substantially, but not to the same levels as originally anticipated. Excluding Harcourt, Thomson now expects 2001 EBITDA from ongoing operations to increase between 12 and 15 percent, versus the 17 percent previously anticipated. EBITDA growth will continue to be driven by strategic initiatives, proactive cost controls, and synergies achieved from recently acquired businesses, but offset by lower than anticipated revenues. "Even taking into account the current economic environment, our overall business remains solid and we expect to deliver significant growth for the year," said Richard J. Harrington, president and chief executive officer of The Thomson Corporation. "While Thomson Financial has clearly been affected by recent events and associated market conditions, it is important to note that our view for 2001 in no way changes our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth expectations for Thomson." Harcourt Update Thomson also announced 2001 expectations for the Harcourt businesses acquired from Reed Elsevier in July 2001. Thomson anticipates revenue generated by these businesses will approach US$350 million in 2001 with an EBITDA margin in the 10 to 12 percent range. However, one-time costs associated with the integration will largely offset the margin contribution in 2001. "We are pleased with the progress of the Harcourt integration," Harrington said. "We are well on the way to realizing the benefits of rationalization rationalization, in psychology: see defense mechanism. efforts over the next 24 months." "Throughout this year our focus has been on integrating our acquisitions and improving efficiency," Harrington added. "That focus is serving us well in the current economic environment." Webcast Information A discussion regarding management's 2001 expectations will be broadcast live on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the today at 10:30 a.m. (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ). Richard J. Harrington, president and chief executive officer, The Thomson Corporation, Robert D. Daleo, executive vice president and chief financial officer, The Thomson Corporation and Patrick J. Tierney, president and chief executive officer of Thomson Financial, will host the discussion. The webcast will be available at www.thomson.com (click on the webcast announcement in the ThomsonNews scroll To continuously move forward, backward or sideways through the text and images on screen or within a window. Scrolling implies continuous and smooth movement, a line, character or pixel at a time, as if the data were on a paper scroll being rolled behind the screen. See auto scroll. box and then follow instructions). Interested parties should access the Thomson Internet site at least fifteen minutes prior to the commencement of the webcast to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. , and install any necessary audio software. For those unable to listen to the live webcast, a replay will be available on the Corporation's web site immediately after its completion. About Thomson The Thomson Corporation (www.thomson.com), with 2000 revenues of approximately US$6 billion, is a leading, global provider of integrated information solutions for business and professional customers. With 40,000 people working in 100 countries, Thomson comprises four market groups: Legal & Regulatory, Financial, Learning, and Scientific & Healthcare. The Corporation's common shares are listed on the Toronto and London stock exchanges London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . |
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