Watson Wyatt Worldwide Reports Third Quarter EPS of $0.76 on Strong Benefits Revenue Growth.Raises Fiscal 2007 Guidance
ARLINGTON, Va. -- Watson Wyatt Worldwide, Inc. (NYSE NYSE
See: New York Stock Exchange :WW), a leading international human capital and financial management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business
service industry - an industry that provides services rather than tangible objects firm, today announced financial results for the third quarter of fiscal year 2007, which ended March 31, 2007.
Revenues were $395.6 million for the quarter, an increase of 15% (10% constant currency) from the third quarter of fiscal 2006 revenues of $343.1 million. Income from continuing operations continuing operations
Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the third quarter of fiscal 2007 was $33.8 million, or $0.76 per diluted di·lute
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.
2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, an increase from $29.3 million or $0.69 per diluted share in the prior-year third quarter. When compared to prior-year third quarter, exchange rates had a positive impact of $0.04 per diluted share on net income.
Results for the quarter also include the dilutive effect Dilutive effect
Result of a transaction that decreases earnings per common share (EPS). of the 1.95 million contingent shares that we expect to issue in the first quarter of fiscal year 2008 related to the acquisition of our U.K. headquartered partner. The contingent shares are not included in prior-year third quarter diluted earnings per share diluted earnings per share
An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of .
"We were pleased to once again achieve double-digit revenue growth, especially on top of our exceptional performance in the comparable year-ago quarter," said John Haley John Haley former Little Rock lawyer, former attorney for Jim Guy Tucker and Jim Guy Tucker's co-defendant.
On February 20, 1998, John Haley pleaded guilty to one misdemeanor count tax fraud to the Internal Revenue Service. , president and chief executive officer. "All the focus on pensions and related investment strategies fueled our growth, and demand for compensation services is strong across the board."
* Benefits Group revenues (representing 56% of third-quarter revenues) were $220.7 million for the third quarter of fiscal 2007, an increase of 11% (7% constant currency) from $197.9 million in the prior-year third quarter. The increase was largely due to increased demand for valuation and design work in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. .
* Technology and Administration Solutions Group revenues (representing 10% of third-quarter revenues) were $39.3 million for the third quarter of fiscal 2007, an increase of 8% (3% constant currency) from $36.4 million in the prior-year third quarter. The increase resulted from an increase in the number of projects in service in North America. At March 31, 2007, 76 projects were in service, compared to 39 at March 31, 2006. We have an additional 66 projects in the implementation phase, compared to 44 at March 31, 2006. The number of projects in implementation at March 31, 2007 is greater than we had forecasted.
* Human Capital Group revenues (representing 10% of third-quarter revenues) were $41.2 million for the third quarter of fiscal 2007, an increase of 14% (10% constant currency) from $36.2 million in the prior-year third quarter. Demand was strong, particularly in the U.S., across all of our compensation service lines, including executive compensation, sales effectiveness and strategic rewards, as well as in data services.
* Insurance & Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page. Group revenues (representing 8% of third-quarter revenues) were $30.3 million for the third quarter of fiscal 2007, an increase of 8% (-4% constant currency) from $27.9 million in the prior-year third quarter. The prior-year quarter included significant revenues from a large demutualization Demutualization
The process of changing corporate structure from a mutual fund company to some other form, such as a limited liability or corporation.
This means mutual/life insurance companies convert from policyholder companies to stock companies. project.
* Investment Consulting Group revenues (representing 9% of third-quarter revenues) were $34.3 million for the third quarter of fiscal 2007, an increase of 44% (37% constant currency) from $23.8 million in the prior-year third quarter. The revenue increase was due to strong demand for all of our services, particularly advice on investment strategy and investment manager selection.
Outlook for Fiscal Year 2007
For fiscal year 2007, the company expects revenues to be approximately $1.48 billion, an increase from previous guidance of $1.43 billion to $1.46 billion. Earnings per diluted share for the year are expected to be in the range of $2.52 to $2.56, an increase from previous guidance of $2.41 to $2.44. This guidance assumes an average exchange rate of 1.93 U.S. dollars to the British pound for fiscal year 2007.
For the fourth quarter of fiscal 2007, the company expects revenue to be in the range of $379 million to $385 million. In addition, the company expects fourth quarter earnings per diluted share to be in the range of $0.62 to $0.66. This guidance assumes an average exchange rate of 1.97 U.S. dollars to the British pound for the fourth quarter of fiscal 2007.
The company will host a live webcast and conference call to discuss the financial results for the third quarter of fiscal 2007. It will be held on Wednesday, May 9, 2007, beginning at 9:00 a.m. Eastern Time, and can be accessed via the Internet by going to www.watsonwyatt.com. The replay of the webcast will be available two hours after the live call for a period of three months. The replay also will be available for one week after the call by dialing 617-801-6888 and using confirmation number 95498295.
Forward-Looking Statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
Statements in this press release regarding projections and expectations of future earnings, revenues, operations, business trends and other such items are forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. A number of risks and uncertainties exist which could cause actual results to differ materially from the results reflected in these forward-looking statements. Such factors include but are not limited to the company's ability to integrate the business of Watson Wyatt LLP LLP - Lower Layer Protocol into our own business, processes and systems, and achieve the anticipated results; our continued ability to recruit and retain qualified associates; the success of our marketing, client development and sales programs after the business combination; our ability to maintain client relationships and to attract new clients after the business combination; declines in demand for our services; outcomes of pending or future litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.
When a person begins a civil lawsuit, the person enters into a process called litigation. and the availability and capacity of professional liability insurance to fund pending or future judgments or settlements; the ability of the company to obtain professional liability insurance; a significant decrease in the demand for the consulting, actuarial ac·tu·ar·y
n. pl. ac·tu·ar·ies
A statistician who computes insurance risks and premiums.
[Latin and other services we offer as a result of changing economic conditions or other factors; actions by competitors offering human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.)
service - work done by one person or group that benefits another; "budget separately for goods and services" , including public accounting and consulting firms Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee
business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a , technology consulting firms and internet/intranet development firms; our ability to achieve cost reductions after the business combination; foreign currency exchange and interest rate fluctuations; exposure to Watson Wyatt LLP liabilities that have not been expressly assumed; general economic and business conditions that adversely affect us or our clients after the business combination; the level of capital resources required for future acquisitions and business opportunities; regulatory developments abroad and domestically that impact our business practices; legislative and technological developments that may affect the demand for or costs of our services; and other factors discussed under "Risk Factors" in the company's Annual Report on Form 10-K Form 10-K
A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.
See 10-K. for the year ended June 30, 2006 and filed on September 1, 2006, with the Securities and Exchange Commission. These statements are based on assumptions that may not come true. All forward-looking disclosure is speculative by its nature. The company undertakes no obligation to update any of the forward-looking information included in this report, whether as a result of new information, future events, changed expectations or otherwise.
About Watson Wyatt Worldwide
Watson Wyatt (NYSE:WW) is the trusted business partner to the world's leading organizations on people and financial issues. The firm's global services include: managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; advising pension plan sponsors and other institutions on optimal investment strategies; providing strategic and financial advice to insurance and financial services companies; and delivering related technology, outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. and data services. Watson Wyatt has 6,300 associates in 30 countries and is located on the Web at www.watsonwyatt.com.
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