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Thomson Reuters Corp /Can SECURITIES AND EXCHANGE COMMISSION FORM 6-K Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments Filing Date: 2021-08-05 | Period of Report: 2021-08-05 SEC Accession No. 0001193125-21-236965 (HTML Version on secdatabase.com) FILER THOMSON REUTERS CORP /CAN/ Mailing Address Business Address 333 BAY STREET 333 BAY STREET CIK:1075124| IRS No.: 980176673 | State of Incorp.:A6 | Fiscal Year End: 1231 SUITE 300 SUITE 300 Type: 6-K | Act: 34 | File No.: 001-31349 | Film No.: 211146280 TORONTO A6 M5H 2R2 TORONTO A6 M5H 2R2 SIC: 2741 Miscellaneous publishing 4166877500 Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of August 2021 Commission File Number: 1-31349 THOMSON REUTERS CORPORATION (Translation of registrants name into English) 333 Bay Street, Suite 300 Toronto, Ontario M5H 2R2, Canada (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☐ Form 40-F ☒ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐ Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. THOMSON REUTERS CORPORATION (Registrant) By: /s/ Marc E. Gold Name: Marc E. Gold Title: Deputy Company Secretary Date: August 5, 2021 Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document EXHIBIT INDEX Exhibit Number Description 99.1 News release dated August 5, 2021 Thomson Reuters Reports Second-Quarter 2021 Results Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Exhibit 99.1 Thomson Reuters Reports Second-Quarter 2021 Results TORONTO, August 5, 2021 Thomson Reuters (TSX/NYSE: TRI) today reported results for the second quarter ended June 30, 2021: Total company revenue grew 9% and organic revenue grew 7%; Raised full-year 2021 total company and Big 3 guidance for revenue growth, adjusted EBITDA margin and free cash flow; Outlook provided for the third quarter of 2021; Change Program on trackachieved $90 million of run-rate operating expense savings through June 30; New $1.2 billion buyback program announced. The strong results that we achieved in the first quarter accelerated in the second quarter. Our performance was consistent across the company, above our expectations, and positions us well for the rest of the year and 2022. These results reflect the confidence of our customers in both an improving economic environment and in their prospects. This dynamic presents us with a tailwind as customers are spending on products and solutions that fit their workflows and improve their professional lives, which are rapidly evolving, said Steve Hasker, president and CEO of Thomson Reuters. Mr. Hasker added, Based on the strong first-half performance and our confidence in the trajectory of the business for second half of the year, we have increased our full-year 2021 guidance. Consolidated Financial HighlightsThree Months Ended June 30 Three Months Ended June 30, (Millions of U.S. dollars, except for adjusted EBITDA margin and EPS) (unaudited) Change at Constant 2021 2020 Change Currency IFRS Financial Measures(1) Revenues $1,532 $1,405 9 % Operating profit $316 $365 -14 % Diluted earnings per share (EPS) $2.15 $0.25 n/m Cash flow from operations $462 $422 10 % Non-IFRS Financial Measures(1) Revenues $1,532 $1,405 9 % 7 % Adjusted EBITDA $502 $479 5 % 5 % Adjusted EBITDA margin 32.7 % 34.1 % -140bp -70bp Adjusted EPS $0.48 $0.44 9 % 9 % Free cash flow $379 $305 25 % (1) In addition to results reported in accordance with International Financial Reporting Standards (IFRS), the company uses certain non-IFRS financial measures as supplemental indicators of its operating performance and financial position. These and other non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in the tables appended to this news release. n/m: not meaningful Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Thomson Reuters Reports Second-Quarter 2021 Results Page 2 of 24 Revenues increased 9%, driven by growth across all of the companys customer segments and a 2% favorable impact from foreign currency. o Organic revenues increased 7%, driven by 5% growth in recurring revenues (79% of total revenues), as well as growth in transactions, Reuters News and Global Print revenues, which benefited from a favorable comparison to the second quarter of 2020 when the early stages of the COVID-19 pandemic negatively impacted results. o The companys Big 3 segments (Legal Professionals, Corporates and Tax & Accounting Professionals), which collectively comprised 80% of total revenues, reported organic revenue growth of 7%. Operating profit decreased 14% as the prior-year period included a significant benefit from the revaluation of warrants that the company previously held in Refinitiv, which was sold to London Stock Exchange Group (LSEG) in January 2021. o Adjusted EBITDA, which excludes the impact of the warrant revaluation, among other items, increased 5% as higher revenues more than offset higher costs, which included costs associated with the companys Change Program. The related margin decreased to 32.7% from 34.1% in the prior-year period due to higher costs. Adjusted EBITDA margin was negatively impacted by 270bp due to Change Program costs. Additional information regarding the Change Program is provided later in this news release. Diluted EPS increased to $2.15 per share from $0.25 per share in the prior-year period due to an increase in the value of the companys LSEG investment. o Adjusted EPS, which excludes the increase in value of the companys LSEG investment, as well as other adjustments, increased to $0.48 per share from $0.44 per share in the prior-year period, primarily due to higher adjusted EBITDA. Cash flow from operations increased as higher revenues and favorable movements in working capital more than offset higher tax payments and expenses, which included Change Program costs. o Free cash flow increased due to higher cash flows from operations and a dividend of $51 million paid by LSEG in the second quarter. Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Thomson Reuters Reports Second-Quarter 2021 Results Page 3 of 24 Highlights by Customer SegmentThree Months Ended June 30 (Millions of U.S. dollars, except for adjusted EBITDA margins) (unaudited) Three Months Ended June 30, Change Constant 2021 2020 Total Currency Organic(1) Revenues Legal Professionals $673 $620 9 % 7 % 6 % Corporates 348 329 6 % 4 % 4 % Tax & Accounting Professionals 197 168 17 % 15 % 15 % Big 3 Segments Combined 1,218 1,117 9 % 7 % 7 % Reuters News 168 155 9 % 6 % 6 % Global Print 147 134 9 % 6 % 6 % Eliminations/Rounding (1 ) (1 ) Revenues $1,532 $1,405 9 % 7 % 7 % Adjusted EBITDA Legal Professionals $285 $254 12 % 10 % Corporates 130 118 10 % 9 % Tax & Accounting Professionals 72 54 32 % 32 % Big 3 Segments Combined 487 426 14 % 13 % Reuters News 35 25 45 % 66 % Global Print 56 54 2 % -1 % Corporate costs (76 ) (26 ) n/a n/a Adjusted EBITDA $502 $479 5 % 5 % Adjusted EBITDA Margin Legal Professionals 42.3 % 40.9 % 140bp 140bp Corporates 37.2 % 35.9 % 130bp 160bp Tax & Accounting Professionals 36.2 % 31.9 % 430bp 450bp Big 3 Segments Combined 39.9 % 38.1 % 180bp 190bp Reuters News 20.8 % 15.6 % 520bp 820bp Global Print 37.9 % 40.5 % -260bp -280bp Corporate costs n/a n/a n/a n/a Adjusted EBITDA margin 32.7 % 34.1 % -140bp -70bp n/a: not applicable (1) Computed for revenue growth only. Unless otherwise noted, all revenue growth comparisons by customer segment in this news release are at constant currency (or exclude the impact of foreign currency) as Thomson Reuters believes this provides the best basis to measure their performance. Legal Professionals Revenues increased 7% (6% organic) to $673 million. o Recurring revenues grew 6% (93% of total, all organic), primarily due to strong performances from Practical Law, Westlaw Edge and the Government business as well as strong contributions from FindLaw, and the companys Canada, Europe and Asia businesses, each of which grew mid to upper single digits in the quarter. o Transactions revenues grew 14% (7% of total, all organic), primarily due to the Government business. Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Thomson Reuters Reports Second-Quarter 2021 Results Page 4 of 24 Adjusted EBITDA increased 12% to $285 million. o The margin increased to 42.3% from 40.9%, primarily due to higher revenues. Corporates Revenues increased 4% (all organic) to $348 million, primarily due to strong recurring revenue growth, including strong growth from legal solutions and the companys Latin America and Asia businesses. o Recurring revenues grew 5% (86% of total, all organic). o Transactions revenues grew 1% (14% of total, all organic), primarily related to increasing demand for solutions provided by the Indirect Tax business.
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