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Interactive Data Reports Second Quarter 2014 Results

NEW YORK, NY -- (Marketwired) -- 07/24/14 -- Interactive Data Corporation today reported its financial results for the second quarter ended June 30, 2014. Interactive Data's second quarter 2014 revenue was $232.1 million, a 3.1% increase from $225.1 million in the second quarter of 2013. Excluding the impact of changes in foreign exchange rates, Interactive Data's organic (non-GAAP) revenue for the second quarter of 2014 grew by 1.3% from the same quarter last year.

Interactive Data's second quarter 2014 income from operations was $27.9 million, compared with $49.6 million in the second quarter of 2013. Non-GAAP adjusted EBITDA (which excludes items that are either not part of the Company's ongoing core operations, or do not require a cash outlay, or are not otherwise expected to recur in the ordinary course) for the second quarter of 2014 was $86.9 million, compared with $88.3 million in the same period one year ago.

"Our second quarter results reflect our ability to navigate the relatively sluggish spending environment that has persisted into 2014," stated Stephen Daffron, Interactive Data's president and CEO. "We have continued to produce organic revenue growth due to the combination of modest growth in our Pricing and Reference Data segment in North America and solid expansion within our 7ticks trading infrastructure managed services area. Our adjusted EBITDA results reflect our efforts to remain vigilant in controlling costs while continuing to direct investment into the product development and technology infrastructure initiatives that we believe will help us accelerate our top-line and bottom-line expansion over the long term."

Segment Reporting and Related Operating Highlights

Pricing and Reference Data Segment:

  • Interactive Data's Pricing and Reference Data segment reported second-quarter 2014 revenue of $165.8 million, a 3.6% increase over $160.1 million in the second quarter of 2013. Excluding the impact of changes in foreign exchange rates, second quarter 2014 organic (non-GAAP) revenue for this segment increased by 2.2% from the same period last year. The segment's performance reflects growth in the Company's evaluated pricing and reference data services in North America, and, to a lesser extent, improved results in its BondEdge fixed income analytics product area. Key highlights during the second quarter of 2014 included Interactive Data's continued progress expanding its services in support of leading index providers such as Barclays Risk Analytics and Index Solutions and MSCI. In May, Interactive Data expanded its NY Close International Fixed Income Evaluation Services to include coverage of sovereign and corporate bonds issued in the Asia-Pacific region. In addition, BondEdge Solutions announced a new suite of equity analysis and reporting tools and also launched BondEdge Advance, a web-based solution that enables broker dealers and asset managers to easily and cost-effectively perform comprehensive fixed income analysis functions for their clients.

Trading Solutions Segment:

  • Interactive Data's Trading Solutions segment generated second quarter 2014 revenue of $66.3 million, an increase of 1.9% over $65.0 million in the same period one year ago. Excluding the impact of changes in foreign exchange rates, second quarter 2014 organic (non-GAAP) revenue for this segment declined 0.8% from the same period last year as growth in the 7ticks trading infrastructure managed services product area was more than offset by a modest decline in other key product areas. In May 2014, Interactive Data announced that Joachim Lauterbach, an experienced financial technology industry executive, was appointed as president and global head of its Managed Solutions business which develops, operates, and hosts customized financial portals and mobile solutions as well as desktop terminals designed for retail and private banks, investment companies, online brokers, exchanges, and media portals. Other recent highlights for the segment included continued enhancement of the Company's range of workstation platforms, including the launch of a new version of eSignal and a related alliance that allows eSignal users to directly access social media sentiment indicators from industry leaders such as Market Prophit.

Other Second Quarter 2014 Financial and Operating Highlights

Effects of Foreign Exchange:

  • The net effect of changes in foreign exchange rates increased second quarter 2014 income from operations by $0.6 million.

Refinancing Activity:

  • As previously announced, in early May Interactive Data entered into a new $2.1 billion senior secured credit facility, consisting of a five year $160 million Revolver (currently unfunded) and a seven year $1.9 billion Term Loan. Additionally, the Company completed the offering of $350 million in aggregate principal amount 5.875% Senior Notes due 2019. Net proceeds from these activities, along with approximately $94 million in cash, were used to refinance its $1.3 billion existing Term Loan, redeem Interactive Data's $700 million 10.25% Senior Notes due 2018, pay related fees and expenses, and fund a $273 million dividend payment to Igloo Holdings Corporation, its parent entity, which in turn paid a dividend to its equity holders.

    The Company is not reporting Pro Forma Adjusted EBITDA (also referred to as Covenant EBITDA) within this second quarter earnings release. The new senior secured credit facility contains a definition of Covenant EBITDA that differs from the definition of Covenant EBITDA in the previous senior secured credit facility. The Company is currently evaluating Covenant EBITDA under the new definition and will report on Covenant EBITDA in connection with its third quarter earnings release.

Balance Sheet Highlights:

  • As of June 30, 2014, Interactive Data had cash, cash equivalents and short-term investments of $254.8 million, compared with $326.9 million last quarter, $289.3 million at the same time last year and $360.2 million at the end of 2013. The Company's cash position reflected the aforementioned use of $94 million as part of the May 2014 financing activity. The Company's total debt outstanding as of June 30, 2014 was approximately $2.25 billion compared to approximately $2.0 billion as of the same time last year.

First Half 2014 Results

  • For the first six months ended June 30, 2014, Interactive Data reported revenue of $466.5 million, an increase of $17.9 million, or 4.0%, from $448.6 million in the same period last year. Excluding the effects of foreign exchange, organic revenue grew by 2.6% during the first half of 2014.

  • Interactive Data's first half 2014 income from operations was $68.8 million, compared with $93.0 million in the same period one year ago. For the first half of 2014, non-GAAP adjusted EBITDA (which excludes items that are not part of the Company's ongoing core operations, or do not require a cash outlay, or are not otherwise expected to recur in the ordinary course) was $168.6 million, compared with $171.4 million in the same period one year ago.

Conference Call Information

Interactive Data Corporation will host a conference call to discuss the Company's second quarter 2014 results on Friday, July 25, 2014 at 8:30 a.m. ET. The dial-in number for the conference call is (785) 424-1827 and the related access code is IDCQ214. For those who cannot listen to this broadcast, a replay of the call will be available from July 25 at 12:00 p.m. until Friday, August 1, 2014 at 12:00 p.m., and it can be accessed by dialing (402) 220-2672 or (800) 753-0348.

Non-GAAP Information

In addition to presenting our results in accordance with generally accepted accounting principles (GAAP) in this press release, we also disclose the following non-GAAP information:

  • Management includes information regarding organic revenue. Organic revenue excludes the impact of foreign exchange rate fluctuations, as well as, if applicable, adjustments related to the amortization of acquisition-related deferred revenue, and the contribution of businesses recently acquired (and related intercompany eliminations). Management believes reporting organic revenue is useful information for stakeholders as it facilitates a fuller understanding of period-to-period changes in revenue and underlying business trends.

  • Management includes organic revenue for our Pricing and Reference Data, and Trading Solutions segments because management believes this additional level of detail provides further insight into underlying performance trends.

  • Management includes information regarding earnings before interest, other income, income taxes, depreciation and amortization (EBITDA) and adjusted EBITDA. Adjusted EBITDA is defined as earnings before interest, other income, income taxes, depreciation and amortization, stock-based compensation expense, restructuring charges and benefits, adjustments related to the amortization of acquisition-related deferred revenue, and other non-cash, non-operational or non-recurring items, in each case as applicable for the underlying periods. Management considers these non-GAAP measures to be important indicators of the Company's operational profitability and cash generation strength. Management also believes these metrics provide transparency into and useful information regarding the Company's historical operating results because items that are either not part of the Company's ongoing core operating expenses, do not require a cash outlay, or are not otherwise expected to recur in the ordinary course of business are eliminated.

  • Management includes information regarding free cash flow, which we define as adjusted EBITDA less capital expenditures. Management considers free cash flow to be an important measure of the Company's cash generation strength that supports the Company's ability to repay its debt obligations and invest in future growth through new business development activities or acquisitions.

  • Management uses these non-GAAP financial measures, in addition to GAAP financial measures, as the basis for measuring the Company's core operating performance and comparing current period performance to that of prior periods, and to the performance of our competitors. Such measures are also used by management in their financial and operating decision-making, and for forecasting and planning purposes.

  • The non-GAAP financial measures of the Company's results of operations included in this press release should not be considered in isolation from comparable measures determined in accordance with GAAP. The non-GAAP financial measures should not be considered to be superior to or a substitute for the Company's results of operations prepared in accordance with GAAP. Reconciliations of such non-GAAP financial measures to the comparable GAAP financial measures are set forth in the accompanying tables. The non-GAAP measures presented may not be comparable to similarly titled measures reported by other companies.

Forward-looking and Cautionary Statements

This press release may contain forward-looking statements. Forward-looking statements include all statements that are not historical statements and include statements discussing the Company's goals, beliefs, strategies, objectives, plans, future financial conditions, future challenges and opportunities. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by forward-looking statements include risks and uncertainties relating to: (i) the implementation of strategies designed to improve revenue and profit growth; (ii) the impact of cost-cutting pressures across the industries the Company serves; (iii) general worldwide economic conditions and related uncertainties; (iv) consolidation of financial services companies, within and across industries; (v) a decline in activity levels in the securities markets, weak or declining financial performance of market participants or the failure of market participants; (vi) the intensity of competition the Company faces; (vii) a prolonged outage at one of the Company's data centers or other major disruptions of the Company's computer operations or those of the Company's suppliers, including outages or disruptions that result in the failure to timely deliver services or otherwise adversely impact the quality of the Company's services; (viii) the Company's ability to maintain relationships with its key suppliers and providers of market data; (ix) the Company's ability to maintain relationships with service bureaus and custodian banks; (x) the need to develop new products and services, and to adapt to legal, regulatory, technology or other changes or new competitive offerings; (xi) the Company's cost and operational optimization plans may not be effective or yield the expected efficiencies or may take longer than anticipated, including the Company's unified technology platform project; (xii) risks related to the Company's substantial leverage, including the Company's ability to raise additional capital to fund operations or react to changes in the economy or the Company's industry and market sectors, and the Company's exposure to interest rate risk on its variable rate debt (to the extent the risk is not mitigated by any interest rate hedge and cap arrangements that may be in place from time to time); (xiii) the Company is subject to regulatory oversight and it provides services to financial institutions who are subject to regulatory oversight, and enforcement actions by regulatory agencies can be time-consuming, costly and could harm our Company's reputation; (xiv) the Company's ability to maintain its registered investment adviser status; (xv) the risks of doing business internationally; (xvi) intellectual property related risks, including any allegations that the Company infringes the intellectual property rights of others; (xvii) the Company's ability to attract and retain qualified management and other key personnel; (xviii) the Company's ability to negotiate and enter into any strategic acquisitions or alliance on favorable terms, if at all; and (xix) the Company's ability to realize the anticipated benefits from any strategic acquisitions or alliances that it may be a party to. While the Company may elect to update forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so, even if management estimates change and, therefore, you should not rely on these forward-looking statements as representing the Company's views as of any date subsequent to today.

About Interactive Data Corporation

Interactive Data Corporation is a trusted leader in financial information. Thousands of financial institutions and active traders, as well as hundreds of software and service providers, subscribe to our fixed income evaluations, reference data, real-time market data, trading infrastructure services, fixed income analytics, desktop solutions and web-based solutions. Interactive Data's offerings support clients around the world with mission-critical functions, including portfolio valuation, regulatory compliance, risk management, electronic trading and wealth management. Interactive Data has over 2,500 employees in offices worldwide.

For more information, please visit www.interactivedata.com.


               INTERACTIVE DATA CORPORATION AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 Unaudited
                               (In thousands)


                                 Three Months Ended      Six Months Ended
                                      June 30,               June 30,
                                  2014       2013        2014       2013
                               ---------- ----------  ---------- ----------
REVENUE                        $  232,081 $  225,110  $  466,479 $  448,614

COSTS AND EXPENSES:
    Cost of services               81,141     72,903     165,646    146,793
    Selling, general and
     administrative                86,070     62,268     158,428    126,001
    Depreciation                   11,033     10,793      21,868     21,839
    Amortization                   25,918     29,546      51,721     60,976
                               ---------- ----------  ---------- ----------
  Total costs and expenses        204,162    175,510     397,663    355,609
                               ---------- ----------  ---------- ----------

INCOME FROM OPERATIONS             27,919     49,600      68,816     93,005

    Interest expense, net         (32,470)   (34,210)    (66,053)   (69,419)
    Other income, net                  14         14         654        347
    Loss on extinguishment of
     debt                         (82,060)         -     (82,060)   (10,213)
                               ---------- ----------  ---------- ----------

(LOSS) INCOME BEFORE INCOME
 TAXES                            (86,597)    15,404     (78,643)    13,720

    Income tax (benefit)
     expense                      (32,849)       369     (39,984)      (447)
                               ---------- ----------  ---------- ----------

NET (LOSS) INCOME              $  (53,748)$   15,035  $  (38,659)$   14,167
                               ========== ==========  ========== ==========


               INTERACTIVE DATA CORPORATION AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                                 Unaudited
                               (In thousands)


                                                   June 30,    December 31,
                                                     2014          2013
                                                 ------------  ------------
                     ASSETS                       (Unaudited)
Assets:
Cash and cash equivalents                        $    254,798  $    356,733
Short-term investments                                      -         3,445
Accounts receivable, net                              159,821       133,997
Prepaid expenses and other current assets              27,535        25,733
Income tax receivable                                       -         6,804
Deferred tax assets                                     4,522        10,711
                                                 ------------  ------------

Total current assets                                  446,676       537,423

Property and equipment, net                           203,208       185,552
Goodwill                                            1,648,069     1,637,202
Intangible assets, net                              1,529,688     1,569,903
Deferred financing costs, net                          27,723        32,737
Other assets                                            6,753         5,541
                                                 ------------  ------------

Total Assets                                     $  3,862,117  $  3,968,358
                                                 ============  ============

             LIABILITIES AND EQUITY

Liabilities:
Accounts payable, trade                          $     20,477  $     20,282
Accrued liabilities                                    85,929       105,842
Borrowings, current                                    19,000        25,356
Interest payable                                        3,452        30,233
Income taxes payable                                    1,405         3,057
Deferred revenue                                       32,204        19,639
                                                 ------------  ------------

Total current liabilities                             162,467       204,409

Income taxes payable                                    3,427        13,566
Deferred tax liabilities                              537,497       573,780
Other liabilities                                      57,971        57,547
Borrowings, net of current portion and original
 issue discount                                     2,201,771     1,940,150
                                                 ------------  ------------

Total Liabilities                                   2,963,133     2,789,452
                                                 ------------  ------------

Equity:
Common stock                                                -             -
Additional paid-in-capital                            968,465     1,237,766
Accumulated loss                                     (127,715)      (89,056)
Accumulated other comprehensive income                 58,234        30,196
                                                 ------------  ------------

Total Equity                                          898,984     1,178,906
                                                 ------------  ------------

Total Liabilities and Equity                     $  3,862,117  $  3,968,358
                                                 ============  ============


               INTERACTIVE DATA CORPORATION AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 Unaudited
                               (In thousands)

                                                       Six Months Ended
                                                           June 30,
                                                       2014         2013
                                                   -----------  -----------

Cash flows from operating activities:
Net (loss) income                                  $   (38,659) $    14,167
Adjustments to reconcile net (loss) income to net
 cash provided by operating activities:
  Depreciation and amortization                         73,589       82,815
  Amortization of deferred financing costs and
   accretion of debt discounts                           6,991        8,140
  Deferred income taxes                                (32,864)      (2,944)
  Non-cash stock-based compensation                      8,467        1,726
  Non-cash interest expense                              1,130          753
  Provision for doubtful accounts and sales
   credits                                               3,279        1,364
  Asset abandonment                                      3,275            -
  Loss on dispositions of fixed assets                       7            9
  Loss on extinguishment of debt                        82,060       10,213
  Portion of insurance settlement related to
   property and equipment                                    -       (2,485)
  Changes in operating assets and liabilities, net     (67,423)      (8,411)
                                                   -----------  -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES               39,852      105,347

Cash flows from investing activities:
  Purchase of property and equipment                   (43,797)     (33,881)
  Proceeds of insurance settlement related to
   property and equipment                                    -        2,485
  Purchase of short-term investments                         -       (3,335)
  Proceeds from the sales of short-term
   investments                                           3,410       14,236
                                                   -----------  -----------
NET CASH USED IN INVESTING ACTIVITIES                  (40,387)     (20,495)

Cash flows from financing activities:
  Principal payments on long-term debt              (1,995,213)      (3,649)
  Proceeds from issuance of long-term debt, net of
   issuance costs                                    2,166,442            -
  Payment of long-term debt issuance costs, net of
   proceeds                                                  -       (1,009)
  Principal payments on capital leases                    (253)        (198)
  Payment of interest rate cap                            (831)        (831)
  Capital contribution resulting from exercise of
   parent company stock options                          1,963            -
  Capital contribution from parent company               9,715            -
  Return of capital to parent company                 (272,895)           -
  Dividend to parent company                           (14,438)     (14,277)
  Capital reduction resulting from cash
   distribution to option holders                       (2,928)        (322)
                                                   -----------  -----------
NET CASH USED IN FINANCING ACTIVITIES                 (108,438)     (20,286)

  Effect of change in exchange rates on cash and
   cash equivalents                                      7,038      (11,496)
                                                   -----------  -----------

NET (DECREASE) INCREASE IN CASH AND CASH
 EQUIVALENTS                                          (101,935)      53,070
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD       356,733      224,597
                                                   -----------  -----------

CASH AND CASH EQUIVALENTS AT END OF PERIOD         $   254,798  $   277,667
                                                   ===========  ===========


                    RECONCILIATION OF NON-GAAP MEASURES

                      Total Organic (Non-GAAP) Revenue
                (Revenue before Effects ofForeign Exchange)
                               (In thousands)


                          Three Months Ended           Six Months Ended
                               June 30,                    June 30,
                     --------------------------  --------------------------
                       2014      2013    Change      2014   2013  Change
                     --------  -------- -------  --------------------------

Total revenue        $232,081  $225,110     3.1% $466,479  $448,614     4.0%
  Total effects of
   foreign exchange    (3,970)        -       -    (6,212)        -       -
                     --------  -------- -------  --------  -------- -------
Total organic (non-
 GAAP) revenue       $228,111  $225,110     1.3% $460,267  $448,614     2.6%
                     ========  ======== =======  ========  ======== =======



            Interactive Data Pricing and Reference Data Segment
                         Organic (Non-GAAP) Revenue
                (Revenue before Effects ofForeign Exchange)
                               (In thousands)


                           Three Months Ended          Six Months Ended
                                June 30,                   June 30,
                       -------------------------  -------------------------
                         2014      2013   Change    2014      2013   Change
                       --------  -------- ------  --------  -------- ------

Pricing and Reference
 Data revenue          $165,830  $160,103    3.6% $328,773  $317,579    3.5%
  Effects of foreign
   exchange              (2,207)        -      -    (3,286)        -      -
                       --------  -------- ------  --------  -------- ------
Total organic (non-
 GAAP) revenue         $163,623  $160,103    2.2% $325,487  $317,579    2.5%
                       ========  ======== ======  ========  ======== ======



                 Interactive Data Trading Solutions Segment
                         Organic (Non-GAAP) Revenue
                (Revenue before Effects ofForeign Exchange)
                               (In thousands)


                           Three Months Ended          Six Months Ended
                                June 30,                   June 30,
                       -------------------------  -------------------------
                         2014      2013   Change    2014      2013   Change
                       --------  -------- ------  --------  -------- ------
Trading Solutions
 revenue
  Real-Time Feeds and
   Trading
   Infrastructure
   Services            $ 29,065  $ 27,034    7.5% $ 62,079  $ 54,636   13.6%
  Hosted Web
   Applications and
   Workstations          37,186    37,973   -2.1%   75,627    76,399   -1.0%
                       --------  -------- ------  --------  -------- ------
Total Trading
 Solutions revenue     $ 66,251  $ 65,007    1.9% $137,706  $131,035    5.1%
  Effects of foreign
   exchange              (1,763)        -      -    (2,926)        -      -
                       --------  -------- ------  --------  -------- ------
Total organic (non-
 GAAP) revenue         $ 64,488  $ 65,007   -0.8% $134,780  $131,035    2.9%
                       ========  ======== ======  ========  ======== ======



              RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)

                        Non-GAAP Adjusted EBITDA(1)
                     (In thousands, except margin data)


                               Three Months Ended       Six Months Ended
                                    June 30,                June 30,
                             ----------------------  ----------------------
                                2014        2013        2014        2013
                             ----------  ----------  ----------  ----------
Net (loss) income            $  (53,748) $   15,035  $  (38,659) $   14,167
  Interest expense, net          32,470      34,210      66,053      69,419
  Other income, net                 (14)        (14)       (654)       (347)
  Income tax (benefit)
   expense                      (32,849)        369     (39,984)       (447)
  Depreciation and
   amortization                  36,951      40,339      73,589      82,815
                             ----------  ----------  ----------  ----------
EBITDA                       $  (17,190) $   89,939  $   60,345  $  165,607

Adjustments:
  Non-cash stock-based
   compensation                   7,325         874       8,467       1,726
  Other non-recurring
   charges(2)                    90,663         818      91,193      12,600
  Other charges (income)(3)       6,110      (3,335)      8,582      (8,497)
                             ----------  ----------  ----------  ----------
    Total Adjustments           104,098      (1,643)    108,242       5,829

Adjusted EBITDA              $   86,908  $   88,296  $  168,587  $  171,436

Adjusted EBITDA Margin(4)          37.4%       39.2%       36.1%       38.2%

(1) Interactive Data's adjusted EBITDA excludes items that are either not
part of the Company's ongoing core operations, do not require a cash outlay
or are not otherwise expected to recur in the ordinary course. Please note
that the sum of certain amounts may not equal the total due to rounding.

(2) Other non-recurring charges include, as applicable, the loss on
extinguishment of debt ($82.1 million in the six months ended June 30, 2014
and $10.2 million in the six months ended June 30, 2013), facility
consolidation costs, and certain severance and retention expenses.

(3) Other charges (income) include, as applicable, insurance recoveries,
management fees, non-cash foreign exchange expense, acquisition-related
adjustments, certain professional fees and other costs.

(4) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by
total revenue.



              RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)

             Trailing Four Quarters and Trailing Twelve Months
                   Quarterly Non-GAAP Adjusted EBITDA(1)
                     (In thousands, except margin data)


                                                                   Trailing
                                                                    Twelve
                                                                    Months
                               Three Months Ended                   Ended
               September 30,  December 31,  March 31,   June 30,   June 30,
               -------------  ------------  ---------  ---------  ---------
                    2013          2013         2014       2014       2014
               -------------  ------------  ---------  ---------  ---------
Net income
 (loss)        $      14,132  $      5,207  $  15,089  $ (53,748) $ (19,320)
 Interest
  expense, net        34,198        34,011     33,583     32,470    134,262
 Other income,
  net                      -             -       (640)       (14)      (654)
 Income tax
  (benefit)
  expense             (7,170)        2,605     (7,135)   (32,849)   (44,549)
Depreciation
 and
 amortization         37,859        38,739     36,638     36,951    150,187
               -------------  ------------  ---------  ---------  ---------
EBITDA         $      79,019  $     80,562  $  77,535  $ (17,190) $ 219,926

Adjustments:
 Non-cash
  stock-based
  compensation         1,067         1,153      1,142      7,325     10,687
 Other non-
  recurring
  charges(2)             435         5,143        530     90,663     96,771
 Other
  charges(3)           7,343         2,237      2,472      6,110     18,162
               -------------  ------------  ---------  ---------  ---------
  Total
   Adjustments         8,845         8,533      4,144    104,098    125,620

Adjusted
 EBITDA        $      87,864  $     89,095  $  81,679  $  86,908  $ 345,546

Adjusted
 EBITDA
 Margin(4)              39.2%         38.4%      34.8%      37.4%      37.4%


(1) Interactive Data's adjusted EBITDA excludes items that are either not
part of the Company's ongoing core operations, do not require a cash outlay
or are not otherwise expected to recur in the ordinary course. Please note
that the sum of certain amounts may note equal the total due to rounding.

(2) Other non-recurring charges include, as applicable, the loss on
extinguishment of debt ($82.1 million in the six months ended June 30,
2014), facility consolidation costs, and certain severance and retention
expenses.

(3) Other charges include, as applicable, insurance recoveries, management
fees, non-cash foreign exchange expense, acquisition-related adjustments,
certain professional fees and other costs.

(4) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by
total revenue.



                          Non-GAAP Free Cash Flow
                               (In thousands)


                         Three Months Ended           Six Months Ended
                              June 30,                    June 30,
                     --------------------------  --------------------------
                        2014      2013   Change     2014      2013   Change
                     --------- --------- ------  --------- --------- ------
Adjusted EBITDA      $  86,908 $  88,296   -1.6% $ 168,587 $ 171,436   -1.7%
  Capital
   Expenditures         22,968    17,527   31.0%    43,797    33,881   29.3%
                     --------- --------- ------  --------- --------- ------
Free Cash Flow       $  63,940 $  70,769   -9.6% $ 124,790 $ 137,555   -9.3%
                     ========= ========= ======  ========= ========= ======

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"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo – to be held June 9-11, 2015, at the Javits Center in New York City, NY – is now accepting Hackathon proposals. Hackathon sponsorship benefits include general brand exposure and increasing engagement with the developer ecosystem. At Cloud Expo 2014 Silicon Valley, IBM held the Bluemix Developer Playground on November 5 and ElasticBox held the DevOps Hackathon on November 6. Both events took place on the expo floor. The Bluemix Developer Playground, for developers of all levels, highlighted the ease of use of...
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...