Navigation Links
The Advisory Board Company Reports Fiscal Year 2010 First Quarter Results

WASHINGTON, Aug. 4 /PRNewswire-FirstCall/ -- The Advisory Board Company (Nasdaq: ABCO) today announced financial results for the first quarter of its fiscal year ending March 31, 2010. Revenue for the quarter was $56.7 million, compared to $57.2 million in the first quarter of fiscal 2009. Net income was $4.2 million, or $0.27 per diluted share, compared to $6.3 million, or $0.36 per diluted share, for the same period a year ago. EBITDA, excluding foreign currency gain, was $7.3 million for the quarter, compared to $9.4 million in the first quarter of fiscal 2009. Contract value grew 0.2% to $232.8 million as of June 30, 2009, up from $232.3 million as of June 30, 2008.

Robert Musslewhite, Chief Executive Officer of The Advisory Board Company, commented, "Our overall performance for the quarter was in line with our expectations. Despite the ongoing budget pressures our members face, which continue to impact both renewals and sales, we are pleased that our contract value has remained steady, demonstrating our ability to address our members' most critical issues through programs that deliver tangible value."

Mr. Musslewhite concluded, "Our membership today faces unprecedented complexity. In addition to weathering the effects of the broader economy, these institutions must also track the health care reform debate and prepare for the implications of a range of possible outcomes. Each day, our network of more than 13,000 executives looks to our proven best practices, expert insight, and practical tools to navigate this demanding terrain. Our position as trusted advisor to this network is the result of our ongoing track record of providing meaningful impact on members' key issues, and we are confident that our work with them through this period will further strengthen our relationships and serve as a building-block for our continued growth and long-term success."

Share Repurchase

During the three months ended June 30, 2009, the Company repurchased 34,982 shares of its common stock at a total cost of approximately $0.9 million. To date the Company has repurchased 7,220,544 shares of its common stock at a total cost of approximately $304.9 million.

Outlook for the Remainder of Calendar Year 2009

As previously announced, the Company expects calendar year 2009 revenue to be within a few percentage points of calendar year 2008 revenue, EBITDA, excluding foreign currency gains and losses, in a range of approximately $27 million to $33 million, and earnings per diluted share in a range of approximately $0.90 to $1.20.

Non-GAAP Financial Measure

EBITDA is a non-GAAP financial measure provided as a complement to financial measures prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). As used in this release, the term "EBITDA" refers to a financial measure that we define as earnings before Other income, net, which includes interest income and foreign currency gain; income taxes; and depreciation and amortization. This non-GAAP measure may be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP measures or results. Furthermore, we intend to continue to provide this non-GAAP financial measure as part of our future earnings discussions and, therefore, the inclusion of this non-GAAP financial measure will provide consistency in our financial reporting. We believe that EBITDA is relevant and useful information for our investors. We use this non-GAAP financial measure for internal budgeting and other managerial purposes because it enables the Company's management to evaluate projected operating results on a basis that allows for comparability without regard to changes arising from applicable tax rates, variability in interest income and foreign currency exchange rates, and periodic costs of certain capitalized tangible and intangible assets.

There are limitations associated with EBITDA, including that EBITDA does not reflect all changes in applicable tax rates, foreign currency exchange rates, or the periodic costs of certain capitalized tangible and intangible assets used in generating revenue in our business. Management compensates for these aspects and limitations of EBITDA by evaluating the costs of such tangible and intangible assets through other financial measure such as evaluating capital expenditures, and by also relying on the comparable GAAP financial measure of income from operations, which includes depreciation and amortization, and Net Income, which includes income taxes, interest income, foreign currency gains, and depreciation and amortization. A reconciliation of this non-GAAP measure to GAAP results is provided below.

                                                    Three Months Ended
                                                         June 30,
                                                   2009            2008
                                                   ----            ----
    Net income                                    $4,188          $6,330
    Provision for income taxes                    $2,186          $3,161
    Other income, net (1)                          $(962)        $(1,204)
    Depreciation and amortization                 $1,903          $1,083
    EBITDA                                        $7,315          $9,370

  1. Other income, net includes interest income of $0.6 million and $1.2 million for the three months ending June 30, 2009 and 2008, respectively. Other income, net also includes foreign currency gain of $0.4 million and $0 for the three months ending June 30, 2009 and 2008, respectively.

Web and Conference Call Information

The Company will hold a conference call to discuss its first quarter performance this evening, August 4, 2009, at 6:00 p.m. Eastern Standard Time. The conference call will be available via live web cast on the Company's web site at in the section titled "Investor Relations" found under the tab "The Firm." To participate by telephone, the dial-in number is 866.271.6130 and the access code is 35125018. Investors are advised to dial-in at least five minutes prior to the call to register. The web cast will be archived for seven days: from 8:00 p.m. Tuesday, August 4, until 8:00 p.m. Tuesday, August 11, 2009.

About The Advisory Board Company

The Advisory Board Company provides best practices research, analysis, executive education and leadership development, business intelligence tools, and installation support services primarily to the health care industry, focusing on business strategy, operations, and general management issues. The Company provides best practices and research through discrete programs to a membership of approximately 2,800 organizations, including leading hospitals, health systems, pharmaceutical and biotech companies, health care insurers, medical device companies, colleges, universities, and other education institutions. Members of each program are typically charged a fixed annual fee and have access to an integrated set of services that may include best practice research studies, executive education seminars, customized research briefs, web-based access to the program's content database, and business intelligence tools.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on information available to the Company as of August 4, 2009, the date of this news release, as well as the Company's current projections, forecasts, and assumptions, and involve risks and uncertainties. You are hereby cautioned that these statements may be affected by certain factors, including those set forth below. Consequently, actual operations and results may differ materially from the results discussed in the forward-looking statements, and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ materially from those indicated by forward-looking statements include, among others, changes in the financial condition of the health care industry, our dependence on renewal of membership-based services, the need to attract new business and retain current members and qualified personnel, new product development, competition, risks associated with our business intelligence tools and installation support tools, our ability to license technology from third parties, risks associated with anticipating market trends, industry consolidation, variability of quarterly operating results, possible volatility in the Company's stock price, and various factors related to income and other taxes, including whether the District of Columbia withdraws the Company's status as a Qualified High-Tech Company, as well as those risks and uncertainties described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2009 and also disclosed from time to time in its subsequent reports on Form 10-Q and Form 8-K, which are available on the Company's website at in the "Investor Relations" section and at the SEC's website at Additional information will also be set forth in the Company's report on Form 10-Q for the quarter ended June 30, 2009, which will be filed with the SEC in August 2009.

Accordingly, readers are cautioned not to place undue reliance on forward-looking statements made in this news release, which speak only as of the date of this news release, and the Company does not undertake to update these statements, whether as a result of circumstances or events that arise after the date they are made, new information, or otherwise.

                              THE ADVISORY BOARD COMPANY
                           AND OTHER OPERATING STATISTICS
                      (In thousands, except per share data)

                                           Three Months Ended      Selected
                                                June 30,            Growth
                                            2009           2008      Rates
                                            ----           ----      -----
    Statements of Income
    Revenue                              $56,703        $57,217        -0.9%
                                         -------        -------

    Cost of services (1)                  30,064         28,554
    Member relations and marketing (1)    12,557         12,398
    General and administrative (1)         6,767          6,895
    Depreciation and amortization          1,903          1,083
        Income from operations             5,412          8,287       -34.7%
    Other income, net                        962          1,204
        Income before provision for
         income taxes                      6,374          9,491       -32.8%
    Provision for income taxes            (2,186)        (3,161)
                                          ------         ------
        Net income                        $4,188         $6,330       -33.8%
                                          ======         ======

    Earnings per share
      Basic                                $0.27          $0.36
      Diluted                              $0.27          $0.36       -25.0%

    Weighted average common Shares
      Basic                               15,555         17,366
      Diluted                             15,609         17,720

    Contract Value (at end of period)   $232,848       $232,278         0.2%

    Percentages of Revenues
    Cost of services (1)                   53.0%          49.9%
    Member relations and marketing (1)     22.1%          21.7%
    General and administrative (1)         11.9%          12.1%
    Depreciation and amortization           3.4%           1.9%
    Income from operations                  9.5%          14.5%
    Net income                              7.4%          11.1%

    (1) Effective April 1, 2006, the Company adopted Statement of Financial
    Accounting Standards No. 123R, "Share-Based Payment" (SFAS No. 123R),
    which provides the accounting rules for share-based compensation.  During
    the three months ended June 30, 2009, the Company recognized approximately
    $0.9 million in cost of services, approximately $0.5 million in member
    relations and marketing, and approximately $1.5 million in general and
    administrative expense for share-based compensation related to the
    adoption of SFAS No. 123R and in employer taxes associated with the
    exercise of employee stock options.  During the three months ended June
    30, 2008, the Company recognized approximately $1.0 million in cost of
    services, approximately $0.6 million in member relations and marketing,
    and approximately $1.2 million in general and administrative expense for
    share-based compensation related to the adoption of SFAS No. 123R and in
    employer taxes associated with the exercise of employee stock options.
    The Company has recorded all these expenses in the same line items as
    other compensation paid to the relevant categories of employees.

                            THE ADVISORY BOARD COMPANY
                           CONSOLIDATED BALANCE SHEETS
                                 (In thousands)

                                                      June 30,     March 31,
                                                        2009          2009
                                                        ----          ----
    Current assets:
      Cash and cash equivalents                        $14,528      $23,746
      Marketable securities                             11,022        8,385
      Membership fees receivable, net                  124,552      116,739
      Prepaid expenses and other current assets          4,727        5,113
      Deferred income taxes, net                         3,239        3,083
                                                         -----        -----
        Total current assets                           158,068      157,066

    Property and equipment, net                         32,724       34,156
    Intangible assets, net                               4,456        4,463
    Goodwill                                            24,908       24,563
    Deferred incentive compensation and other
     charges                                            27,183       26,737
    Deferred income taxes, net of current portion        7,673        7,555
    Other non-current assets                             5,000            -
    Marketable securities                               57,697       61,718
                                                        ------       ------
        Total assets                                  $317,709     $316,258
                                                      ========     ========

    Current liabilities:
      Deferred revenues                               $151,934     $150,609
      Accounts payable and accrued liabilities          34,333       35,777
      Accrued incentive compensation                     3,733        7,320
                                                         -----        -----
        Total current liabilities                      190,000      193,706

    Long-term deferred revenues                         19,084       19,869
    Other long-term liabilities                          3,616        3,784
                                                         -----        -----
        Total liabilities                              212,700      217,359
                                                       -------      -------

    Stockholders' equity:
      Common stock                                         217          217
      Additional paid-in capital                       236,767      233,794
      Retained earnings                                138,680      134,492
      Accumulated elements of comprehensive income       1,155        1,307
      Treasury stock                                  (271,810)    (270,911)
                                                      --------     --------
        Total stockholders' equity                     105,009       98,899
                                                       -------       ------

          Total liabilities and stockholders' equity  $317,709     $316,258
                                                      ========     ========

                               THE ADVISORY BOARD COMPANY
                                   (In thousands)

                                                  Three Months Ended June 30,
                                                        2009          2008
                                                        ----          ----
    Cash flows from operating activities:
      Net income                                      $4,188        $6,330
        Adjustments to reconcile net income to
         net cash provided by (used in)
         operating activities:
         Depreciation                                  1,903         1,083
         Amortization of intangible assets               268           192
         Deferred income taxes                          (192)          288
         Excess tax benefits from stock-based
          payments                                         -          (291)
         Stock-based Compensation expense              2,939         2,803
         Amortization of Marketable securities
          premiums                                       150           224
         Changes in operating assets and liabilities:
           Member fees receivable                     (7,813)       (8,119)
           Prepaid expenses and other current assets   1,386           576
           Deferred incentive compensation and
            other charges                               (446)         (719)
           Deferred revenues                             540         2,471
           Accounts payable and accrued liabilities   (1,789)        1,071
           Accrued incentive compensation             (3,587)       (5,703)
           Other long-term liabilities                  (168)         (113)
                                                        ----          ----
             Net cash flows (used in ) provided by
              operating activities                    (2,621)           93
                                                      ------           ---

    Cash flows from investing activities:
      Purchases of property and equipment               (471)       (5,768)
      Capitalized software development costs            (261)         (173)
      Cash paid for acquisition, net of cash acquired      -       (18,592)
      Redemption of marketable securities              3,500        33,969
      Purchases of marketable securities              (2,500)       (5,579)
      Other investing activities                      (6,000)            -
                                                      ------           ---
        Net cash flows (used in) provided by
         investing activities                         (5,732)        3,857
                                                      ------         -----

    Cash flows from financing activities:
      Proceeds on issuance of stock from exercise
       of stock options                                    -           421
      Repurchase of shares to satisfy minimum
       employee tax withholding                           (2)         (390)
      Proceeds on issuance of stock under
       employee stock purchase plan                       36           113
      Excess tax benefits from share-based
       compensation arrangements                           -           291
      Purchases of treasury stock                       (899)       (8,807)
                                                        ----        ------
        Net cash flows used in financing activities     (865)       (8,372)
                                                        ----        ------

    Net decrease in cash and cash equivalents         (9,218)       (4,422)
    Cash and cash equivalents, beginning of period    23,746        17,907
                                                      ------        ------
    Cash and cash equivalents, end of period         $14,528       $13,485
                                                     =======       =======

SOURCE The Advisory Board Company
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Professor Bruce Beutler Joins aTyr Pharmas Scientific Advisory Board
2. Allergists Urge Asthmatics to Get Swine and Seasonal Flu Shots Following CDC Vaccine Advisory Committee Recommendations
3. Globaltel Media Appoints Leading Healthcare Industry Veterans to Advisory Board
4. Conference Call Advisory - NUCRYST Pharmaceuticals Corp. Conference Call to Discuss 2009 Second Quarter Results
5. WellPoint State Sponsored Business President Appointed Advisory Board Member of the HIMSS Board of Directors
6. VA Advisory Committee on Women Veterans Visits Dallas
7. The Beryl Companies Welcomes Three New Members to its Executive Advisory Council
8. Pennsylvania Patient Safety Authority Releases June Advisory
9. Renowned Medical Tourism Industry Expert and Author Josef D. Woodman Joins Satori World Medical's Strategic Advisory Board
10. Dermatologic and Ophthalmic Drugs Advisory Committee Unanimously Recommends Bepreve(TM) for the Treatment of Ocular Itching Associated with Allergic Conjunctivitis
11. Intercell Supports the Japanese Encephalitis Vaccination Recommendations of CDCs Advisory Committee on Immunization Practices
Post Your Comments:
(Date:10/13/2017)... , ... October 13, 2017 , ... “The Journey: From ... every danger possible to save lost souls in the Philippines. “The Journey: From the ... is a dedicated teacher of the Bible. She has taught all ages and currently ...
(Date:10/12/2017)... Orleans, LA (PRWEB) , ... October 12, 2017 , ... ... centers in the U.S., announced today its plans to open a flagship location in ... will occupy the former Rooms To Go store next to Office Depot in the ...
(Date:10/12/2017)... ... 12, 2017 , ... Asante, a nationally recognized health system ... their existing home health joint venture through an agreement, effective October 1, 2017, ... venture home health company with Asante, delivering clinically integrated care, for the past ...
(Date:10/12/2017)... D.C. (PRWEB) , ... October 12, 2017 , ... Leading ... their peers in Washington, D.C., for the 49th Congress of the International Society ... ., Vice President of the Center for Cancer and Blood Disorders at ...
(Date:10/12/2017)... ... October 12, 2017 , ... ... in property taxes a year. In some states—like New York, New Jersey, Massachusetts, ... contrast, many overseas retirement havens have extremely low property-tax rates, which contributes to ...
Breaking Medicine News(10 mins):
(Date:9/25/2017)...   Montrium , an industry leader in ... IQPC Trial Master Files & Inspection Readiness Conference ... Clinical Services has selected eTMF Connect ... EastHORN, a leading European contract research organization (CRO), ... to enable greater collaboration with sponsors, improve compliance ...
(Date:9/19/2017)... Mich. , Sept. 19, 2017 HistoSonics, Inc., a venture-backed medical device company ... destruction of targeted tissues, announced three leadership team developments today:   ... PhD ... ... Veteran medical device executive Josh ...
(Date:9/12/2017)... , Sept. 12, 2017   EcoVadis , the leading platform ... published the first annual edition of its Global CSR Risk and Performance ... evaluated by EcoVadis, based on Scorecard Ratings that analyzed nearly 800,000 data ... ... ...
Breaking Medicine Technology: