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Towers Watson Reports Strong First Quarter Earnings
- Revenues increased 2% over prior year first quarter (7% constant currency)
- Adjusted Diluted EPS of $1.49, increase of 13% over prior year first quarter
- Diluted EPS of $1.78, increase of 53% over prior year first quarter
ARLINGTON, Va.--(BUSINESS WIRE)--November 2, 2015--Towers Watson (NASDAQ: TW),a leading global professional services company, today announced financial results for the first quarter of fiscal year 2016, which ended September 30, 2015.
Total revenues were $896 million for the quarter, an increase of 2% (7% constant currency and 6% organic) from $878 million for the first quarter of fiscal 2015. All segments experienced revenue growth this quarter on both a constant currency and organic basis.
Adjusted EBITDA for the first quarter of fiscal 2016 was $183 million, or 20.4% of revenues, versus Adjusted EBITDA of $171 million, or 19.5% of revenues, for the prior-year first quarter.
Net income attributable to controlling interests for the first quarter of fiscal 2016 was $123 million, an increase from $82 million for the prior-year first quarter. For the quarter, diluted earnings per share were $1.78, and adjusted diluted earnings per share were $1.49. Net income attributable to controlling interests and diluted earnings per share for the first quarter of fiscal 2016 include a $55 million gain on the sale of the Human Resources Service Delivery business and $9 million of transaction and integration expenses. The tax rate for the quarter was 33%.
“I’m very pleased with our strong first quarter results and the client focus our associates continue to exhibit while integration planning is well underway,” said John Haley, Towers Watson’s chief executive officer. “This is an exciting time for all of us at Towers Watson. Our business is performing well, and we can all be proud of the organization we’ve built over the last several years. However, it’s even more exciting to envision the value we can bring to our clients, associates and shareholders with the creation of Willis Towers Watson.”
First Quarter Company Highlights
For the quarter, the Benefits segment had revenues of $448 million, a decrease of 4% (1% increase constant currency) from $466 million in the prior-year first quarter. Retirement had a low-single digit constant currency revenue decline, primarily due to the expected lower bulk lump sum (BLS) activity in the Americas, as compared to the first quarter of fiscal 2015, partially offset by a low double digit increase in EMEA. Health and Group Benefits had mid-single digit constant currency revenue growth, due to an increase in new plan management clients and product revenue. Technology and Administration Solutions constant currency revenue was flat, due to reduced BLS projects in the Americas Region and offset by increased pension administration and special projects in EMEA. The Benefits segment had a Net Operating Income (“NOI”) margin of 34% in the first quarter of fiscal 2016.
The following information was filed by Towers Watson Co. on Monday, November 2, 2015 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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