Solera Holdings, Inc. Reports Fourth Quarter and Fiscal Year 2009 Results

Fiscal Year Revenue of $557.7 Million, Up 3.3% on a GAAP basis and up 12.9% on
a Constant Currency Basis; Fourth Quarter Revenue of $144.1 Million, Down 1.0%
on a GAAP basis and up 13.6% on a Constant Currency Basis. Board of Directors
Approves First Quarterly Cash Dividend. Company Issues Guidance for Fiscal
Year 2010.

SAN DIEGO, Aug. 27 /PRNewswire-FirstCall/ -- Solera Holdings, Inc. (NYSE:
SLH), the leading global provider of software and services to the automobile
insurance claims processing industry, today reported results for the fourth
quarter and fiscal year ended June 30, 2009.

Results for the Fourth Quarter and Fiscal Year Ended June 30, 2009:

GAAP Results

-- Revenue for the fiscal year was $557.7 million, a 3.3% increase over
the
prior fiscal year revenue of $539.9 million. After adjusting for
changes in foreign currency exchange rates ("FX Changes"),
revenue for fiscal year 2009 increased by approximately 12.9% over the
prior fiscal year;
-- Revenue for the fourth quarter was $144.1 million, a 1.0% decrease
over
the prior year fourth quarter revenue of $145.5 million. After
adjusting for FX Changes, revenue for the fourth quarter of fiscal
year
2009 increased by approximately 13.6% over the prior year fourth
quarter;
-- GAAP net income for the fiscal year was $57.8 million, a $57.2 million
improvement over the prior fiscal year net income of $0.6 million;
-- GAAP net income for the fourth quarter was $11.8 million, a $33.4
million improvement over the prior year fourth quarter net loss of
$21.6
million;
-- Diluted net income per share for the fiscal year was $0.85, a $0.84
per
share improvement over the prior fiscal year diluted net income per
share of $0.01;

-- Diluted net income per share for the fourth quarter was $0.17, a $0.50
per share improvement over the prior year fourth quarter diluted net
loss per share of $0.34.

"Our fourth quarter topped off a respectable performance in fiscal 2009.
Despite a very challenging global economy, we turned in solid growth rates,"
said Tony Aquila, founder, chairman and CEO of Solera Holdings, Inc.
"Reflecting our track record of strong cash flows, we are very pleased to
announce our first quarterly dividend. The dividend enhances stockholders'
total return while we continue to be very focused on pursuing our long-term
growth opportunities."

Non-GAAP Results

-- Adjusted EBITDA for the fiscal year was $208.6 million, a 12.4%
increase
over the prior fiscal year Adjusted EBITDA of $185.5 million. After
adjusting for FX Changes, Adjusted EBITDA for fiscal year 2009
increased
by approximately 28.2% over the prior fiscal year;
-- Adjusted EBITDA for the fourth quarter was $52.3 million, a 2.7%
increase over the prior year fourth quarter Adjusted EBITDA of $50.9
million. After adjusting for FX Changes, Adjusted EBITDA for the
fourth
quarter of fiscal year 2009 increased by approximately 24.6% over the
prior year fourth quarter;
-- Adjusted Net Income for the fiscal year was $109.0 million, a 38.5%
increase over the prior fiscal year Adjusted Net Income of $78.7
million;
-- Adjusted Net Income for the fourth quarter was $27.3 million, a 22.8%
increase over the prior year fourth quarter Adjusted Net Income of
$22.2
million;
-- Adjusted Net Income per diluted share for the fiscal year was $1.61, a
32.0% increase over the prior year Adjusted Net Income per diluted
share
of $1.22;

-- Adjusted Net Income per diluted share for the fourth quarter was
$0.39,
a 14.7% increase over the prior year fourth quarter Adjusted Net
Income
per diluted share of $0.34.

Business Statistics for the Fourth Quarter and Fiscal Year ended June 30,
2009:

-- EMEA revenues were $92.9 million and $351.7 million for the fourth
quarter and the full fiscal year, respectively, representing no
increase
and a 5.3% increase over the respective prior year periods. After
adjusting for FX Changes, EMEA revenues for the fourth quarter and
full
fiscal year increased 19.4% and 17.9%, respectively, over the
respective
prior year periods. After excluding revenue during the fourth quarter
and full fiscal year from the acquisition of HPI, Ltd. and the FX
Changes, EMEA revenue for the fourth quarter and full fiscal year
increased 4.7% and 9.5%, respectively, over the respective prior year
periods;
-- Americas revenues were $51.2 million and $206.0 million for the fourth
quarter and the full fiscal year, respectively, representing a 2.7%
decrease and a 0.1% increase over the respective prior year periods.
After adjusting for FX Changes, Americas revenues for the fourth
quarter
and full fiscal year increased 3.5% and 4.8%, respectively, over the
respective prior year periods;
-- Revenues from insurance company customers were $58.7 million and
$231.9
million for the fourth quarter and the full fiscal year, respectively,
representing a 1.7% decrease and a 5.4% increase over the respective
prior year periods. After adjusting for FX Changes, revenues from
insurance company customers for the fourth quarter and full fiscal
year
increased 11.6% and 13.7%, respectively, over the respective prior
year
periods;
-- Revenues from collision repair facility customers were $51.4 million
and
$203.6 million for the fourth quarter and the full fiscal year,
respectively, representing a 6.3% decrease and a 0.3% decrease over
the
respective prior year periods. After adjusting for FX Changes,
revenue
from collision repair facility customers for the fourth quarter and
full fiscal year increased 8.0% and 10.2%, respectively, over the
respective prior year periods;
-- Revenues from independent assessors were $13.6 million and $54.1
million
for the fourth quarter and the full fiscal year, respectively,
representing a 13.7% decrease and a 5.5% decrease over the respective
prior year periods. After adjusting for FX Changes, revenue from
independent assessors for the fourth quarter and full fiscal year
increased 0.9% and 2.3%, respectively, over the respective prior year
periods;

-- Revenues from automotive recycling and other customers were $20.5
million and $68.0 million for the fourth quarter and the full fiscal
year, respectively, representing a 34.2% increase and a 16.6% increase
over the respective prior year periods. After adjusting for FX
Changes,
revenue from automotive recycling and other customers for the fourth
quarter and full fiscal year increased 55.2% and 29.5%, respectively,
over the respective prior year periods.

Fiscal Year 2010 Outlook:

Our initial outlook for our full fiscal year ending June 30, 2010 is as
follows:

Fiscal Year 2010 Outlook
------------------------
Revenues $594 million -- $602 million
Net Income $49 million -- $55 million
Adjusted Net Income $124 million -- $128 million
Adjusted Net Income per diluted share $1.76 -- $1.83
Adjusted EBITDA $229 million -- $235 million

The Fiscal Year 2010 outlook above assumes constant currency exchange rates
from those currently prevailing, no acquisitions, and a 28% tax rate to
calculate Adjusted Net Income.

Exchange rates between most of the major foreign currencies we use to transact
our business and U.S. dollars have fluctuated significantly over the last few
years, and we expect that they will continue to fluctuate during fiscal year
2010. The majority of our revenues and costs are denominated in Euros, Pound
Sterling, Swiss francs, Canadian dollars and other international currencies.
During fiscal year 2009, the U.S. dollar strengthened significantly versus
most major foreign currencies we use to transact our business. For example,
one Euro was equal to approximately $1.58 on June 30, 2008, $1.44 on September
30, 2008, $1.41 on December 31, 2008, $1.32 on March 31, 2009 and $1.40 on
June 30, 2009. The change from June 30, 2008 to June 30, 2009 represents a
strengthening of the U.S. dollar versus the Euro of approximately 11.1%. The
strengthening of the U.S. dollar had a negative comparable impact on our
revenues, but a positive comparable impact on our expenses for fiscal year
2009 as compared to fiscal year 2008. A hypothetical 5% increase or decrease
in the U.S. dollar versus other currencies in which we transact our business
would have resulted in a $20.6 million change to our revenues during fiscal
year 2009.

All percentage amounts and ratios were calculated using the underlying data in
whole dollars. We measure constant currency, or the effects on our results
that are attributed to FX Changes, by measuring the incremental difference
between translating the prior period and the current results at the monthly
average rates for the same period from the prior year.

Tax Provision

Our tax provision for the fiscal year 2009 was $26.7 million at an effective
rate of 28.7%. Our fourth quarter fiscal year 2009 tax provision was $3.5
million at an effective rate of 19.9%. Our fourth quarter fiscal year 2008 tax
provision of $26.7 million included a $30.0 million valuation allowance for
deferred tax assets pursuant to the requirements of Statement of Financial
Accounting Standards No. 109, or SFAS 109. Approximately $27.1 million of the
valuation allowance related primarily to cumulative net operating losses
incurred in several of our U.S. subsidiaries. Our tax provision in the fourth
quarter of fiscal year 2009 benefited from certain tax planning strategies,
principally implemented in Europe during the fourth quarter of fiscal year
2009.

Quarterly Dividend:

The Board of Directors has approved our first quarterly cash dividend of
$0.0625 per share of outstanding common stock and per outstanding restricted
stock unit. The dividend will be payable on September 28, 2009 to stockholders
and restricted stock unit holders of record at the close of business on
September 18, 2009.

Earnings Conference Call:

We will host our fourth quarter and fiscal year ended June 30, 2009 earnings
call today at 5:00 p.m. (Eastern Time) - August 27, 2009. The conference call
will be webcast live on the Internet and can be accessed by visiting:
www.solerainc.com. A replay will be available on the Solera website until
midnight on September 10, 2009. A live audio broadcast of the call will be
accessible to the public by calling (866) 700-7477 or for international
callers, (617) 213-8840; please enter the following access code when prompted:
82982200. Callers should dial in approximately ten minutes before the call
begins.

SOLERA HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND TWELVE MONTH PERIODS ENDED JUNE 30, 2009 AND 2008
(In thousands, except per share amounts)
(Unaudited)
------------------------------------------------------------------------

Three Months Twelve Months
Ended June 30, Ended June 30,
---------------- ---------------
2009 2008 2009 2008
---- ---- ---- ----

Revenues $144,135 $145,533 $557,691 $539,853
-------- -------- -------- --------

Cost of revenues :
Operating expenses 32,903 33,585 128,424 131,715
Systems development and
programming costs 15,282 17,728 60,212 66,666
------ ------ ------ ------
Total cost of revenues (excluding
depreciation and amortization) 48,185 51,313 188,636 198,381
Selling, general and
administrative expenses 43,669 42,576 162,223 154,532
Depreciation and amortization 22,732 25,379 86,146 95,266
Restructuring charges 3,564 10,449 4,976 13,286
Interest expense 8,952 11,442 38,565 45,730
Other income - net (513) (3,191) (15,656) (9,518)
---- ------ ------- ------
126,589 137,968 464,890 497,677
------- ------- ------- -------
Income before income tax provision
and minority interests 17,546 7,565 92,801 42,176
Income tax provision 3,484 26,694 26,650 34,335
Minority interest in net income
of consolidated subsidiaries 2,221 2,444 8,326 7,243
----- ----- ----- -----
Net income (loss) $11,841 $(21,573) $57,825 $598
======= ======== ======= ====

Net income (loss) per share:
Basic $0.17 $(0.34) $0.86 $0.01
===== ====== ===== =====
Diluted $0.17 $(0.34) $0.85 $0.01
===== ====== ===== =====

Weighted average shares used in the
calculation of net income per share:
Basic 69,156 63,985 67,252 63,500
====== ====== ====== ======
Diluted 69,555 63,985 67,732 64,737
====== ====== ====== ======

Non-GAAP Financial Measures

We use a number of non-GAAP financial measures that are not intended to be
used in lieu of GAAP presentations, but are provided because management
believes that they provide additional information with respect to the
performance of our fundamental business activities and are also frequently
used by securities analysts, investors and other interested parties to
facilitate the evaluation of our business on a comparable basis to other
companies. The three primary non-GAAP financial measures that we use are
Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per diluted
share. We believe that Adjusted EBITDA, Adjusted Net Income and Adjusted Net
Income per diluted share are useful to investors in providing information
regarding our operating results and our continuing operations. We rely on
Adjusted EBITDA as a primary measure to review and assess the operating
performance of our company and our management team in connection with our
executive compensation and bonus plans. Adjusted EBITDA also allows us to
compare our current operating results with corresponding prior periods as well
as to the operating results of other companies in our industry. We present
Adjusted Net Income and Adjusted Net Income per diluted share because we
believe both of these measures provide useful information regarding our
operating results in addition to our GAAP measures. We believe that Adjusted
Net Income and Adjusted Net Income per diluted share provide investors with
valuable insight into our profitability exclusive of unusual adjustments, and
provide further insight into the cash impact resulting from the different
treatments of goodwill for financial reporting and tax purposes.

Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per diluted share
have limitations as analytical tools, and you should not consider them in
isolation or as a substitute for net income, earnings per share and other
consolidated income statement data prepared in accordance with accounting
principles generally accepted in the United States. Because of these
limitations, Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per
diluted share should not be considered as a replacement for net income. We
compensate for these limitations by relying primarily on our GAAP results and
using Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per
diluted share as supplemental information.

-- Adjusted EBITDA is a non-GAAP financial measure that represents GAAP
net
income (loss) allocable to common stockholders/unitholders, excluding
interest, taxes, depreciation and amortization, stock-based
compensation, restructuring charges, other income - net and
acquisition-related costs. Acquisition-related costs consist of
transaction costs (including costs associated with potential
acquisitions that we did not ultimately pursue and acquisitions not
yet
completed at June 30, 2009 and therefore charged to results of
operations in contemplation of our adoption of Statement of Financial
Accounting Standards No. 141 (revised), Business Combinations, in the
first quarter of fiscal year 2010), retention-related compensation
costs, legal and professional fees, severance costs and other
transition
costs associated with our acquisition of the Claims Services Group
from
ADP in April 2006. A reconciliation of our Adjusted EBITDA to GAAP
net
income (loss) allocable to common stockholders/unitholders, the most
directly comparable GAAP measure, is provided in the attached table.

Three Months Twelve Months
Ended June 30, Ended June 30,
---------------- ---------------
2009 2008 2009 2008
---- ---- ---- ----
Reconciliation to Adjusted
EBITDA
Net income (loss) $11,841 $(21,573) $57,825 $598
Add: Income tax provision 3,484 26,694 26,650 34,335
----- ------ ------ ------
Net income before income tax 15,325 5,121 84,475 34,933
Add: Depreciation and
amortization 22,732 25,379 86,146 95,266
Add: Interest expense 8,952 11,442 38,565 45,730
Add: Stock-based compensation
expense 1,863 1,475 6,711 4,848
Add: Restructuring charges 3,564 10,449 4,976 13,286
Add: Other income - net (513) (3,191) (15,656) (9,518)
Add: Acquisition related
costs 360 212 3,339 954
--- --- ----- ---
Adjusted EBITDA $52,283 $50,887 $208,556 $185,499
======= ======= ======== ========

Adjusted Net Income is a non-GAAP financial measure that represents GAAP net
income (loss) allocable to common stockholders/unitholders, plus the following
items: provision for income taxes, amortization of acquisition-related
intangibles, stock-based compensation expense, restructuring charges, other
income - net and acquisition-related costs. Acquisition-related costs consist
of transaction costs (including costs associated with potential acquisitions
that we did not ultimately pursue and acquisitions not yet completed at June
30, 2009 and therefore charged to results of operations in contemplation of
our adoption of Statement of Financial Accounting Standards No. 141 (revised),
Business Combinations, in the first quarter of fiscal year 2010),
retention-related compensation costs, legal and professional fees, severance
costs and other transition costs associated with our acquisition of the Claims
Services Group from ADP in April 2006. From this figure, we then subtract a
provision for income taxes to arrive at Adjusted Net Income. For periods
ended June 30, 2008 and prior, we used a 33% tax rate. For periods ending
after June 30, 2008, we use a 28% tax rate. We use this 28% tax rate in order
to approximate our long-term effective corporate tax rate, which includes
certain benefits from net operating loss carryforwards, tax deductible
goodwill and amortization, and a low tax-rate jurisdiction for a certain
corporate holding company. A reconciliation of our Adjusted Net Income to GAAP
net income (loss) allocable to common stockholders/unitholders, the most
directly comparable GAAP measure, is provided in the attached table.

-- Adjusted Net Income per diluted share is a non-GAAP financial measure
that represents Adjusted Net Income (as defined above) divided by the
number of diluted shares outstanding for the period. A reconciliation
of our Adjusted Net Income per diluted share to GAAP net income (loss)
per share, the most directly comparable GAAP measure, is provided in
the
attached table.

Three Months Twelve Months
Ended June 30, Ended June 30,
---------------- ---------------
2009 2008 2009 2008
---- ---- ---- ----
Reconciliation to Adjusted
Net Income
Net income (loss) $11,841 $(21,573) $57,825 $598
Add: Income tax provision 3,484 26,694 26,650 34,335
----- ------ ------ ------
Net income before income
tax 15,325 5,121 84,475 34,933
Add: Amortization of
acquisition related
intangibles 16,838 19,091 64,002 72,996
Add: Stock-based
compensation expense 1,863 1,475 6,711 4,848
Add: Restructuring charges 3,564 10,449 4,976 13,286
Add: Other income -- not
including interest income
FY09 (60) (3,191) (12,051) (9,518)
Add: Acquisition related
costs 360 212 3,339 954
--- --- ----- ---
Adjusted income before
income tax provision 37,890 33,157 151,452 117,499
Less: Assumed provision
for income taxes at 28%
and 33% rate for June 30,
2009 and June 30, 2008,
respectively (10,609) (10,942) (42,407) (38,775)
------- ------- ------- -------
Adjusted net income $27,281 $22,215 $109,045 $78,724
======= ======= ======== =======

Adjusted net income per share:
Basic $0.39 $0.35 $1.62 $1.24
===== ===== ===== =====
Diluted $0.39 $0.34 $1.61 $1.22
===== ===== ===== =====

Weighted average shares used
in the calculation of
adjusted net income per share:

Basic 69,156 63,985 67,252 63,500
====== ====== ====== ======
Diluted 69,555 64,814 67,732 64,737
====== ====== ====== ======

SOLERA HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2009 and 2008
(In thousands)
------------------------------------------------------------------------

June 30, June 30,
2009 2008
(Unaudited) (unaudited)(1)
------------ ---------------
Assets
Current Assets:
Cash and cash equivalents $223,420 $149,311
Short term investments 11,941 -
Accounts receivable, net 98,565 95,843
Other receivables 12,177 9,784
Other current assets 19,550 18,314
Deferred income tax assets 4,392 4,802
----- -----
Total current assets 370,045 278,054
------- -------

Property and equipment, net 50,784 49,243
Other Assets 13,660 22,980
Long-term deferred income tax assets 10,178 5,162
Goodwill 651,099 646,098
Intangible assets, net 322,843 330,218
------- -------
Total assets $1,418,609 $1,331,755
========== ==========

Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $30,447 $32,191
Accrued expenses and other current
liabilities 104,414 103,597
Income taxes payable 17,462 12,449
Deferred income tax liabilities 1,037 842
Current portion of long-term debt 5,880 6,336
----- -----
Total current liabilities 159,240 155,415
------- -------

Long-term debt 592,200 624,570
Other liabilities 36,935 33,475
Long-term deferred income tax liabilities 53,965 36,558
------ ------
Total liabilities 842,340 850,018
------- -------

Minority interests in consolidated
subsidiaries 17,330 15,429

Stockholders' equity:
Common Shares, $0.01 par value, 150,000
shares authorized; 69,531 and 64,816
issued and outstanding, as of June 30,
2009 and 2008, respectively 604,952 510,900
Accumulated deficit (52,332) (110,157)
Accumulated other comprehensive income 6,319 65,565
----- ------
Total stockholders' equity 558,939 466,308
------- -------
Total liabilities and stockholders'
equity $1,418,609 $1,331,755
========== ==========

(1) Derived from audited consolidated financial statements as of
June 30, 2008.

SOLERA HOLDINGS, INC. AND SUBSIDIARIES
SELECTED STATEMENTS OF CASH FLOWS INFORMATION
FOR THE TWELVE MONTHS ENDED JUNE 30, 2009 and 2008
(In thousands)
(Unaudited)
----------------------------------------------------
Twelve Months
ended June 30,
---------------
2009 2008
---- ----
Net cash provided by operating activities $128,874 $117,402
Net cash used in investing activities (121,876) (19,135)
Net cash provided by/(used) in financing activities 76,739 (51,346)
Effect of exchange rate changes (9,628) 12,522
------ ------
Net increase in cash and cash equivalents 74,109 59,443
Cash and cash equivalents, beginning of period 149,311 89,868
------- ------

Cash and cash equivalents, end of period $223,420 $149,311
======== ========

Supplemental Cash Flow Information:
Cash paid for interest $37,961 $44,913
Cash paid for income taxes $30,828 $23,341
------- -------
Supplemental Disclosure of Non-cash Investing
and Financing Activities:
Capital assets financed $1,554 $3,735
Note payable from acquisitions of business $17,330
------- -------

About Solera

Solera is the leading global provider of software and services to the
automobile insurance claims processing industry. Solera is active in over 50
countries across six continents. The Solera companies include Audatex in the
United States, Canada, and in more than 45 additional countries, Informex in
Belgium, Sidexa in France, ABZ in The Netherlands, HPI in the United Kingdom,
Hollander serving the North American recycling market, and IMS providing
medical review services. For more information, please refer to the company's
website at http://www.solerainc.com.

Cautions about Forward-Looking Statements:

This press release contains forward-looking statements, including statements
about our growth and growth opportunities, our expectations regarding changes
in foreign currency exchange rates, our business outlook for fiscal year 2010,
our business strategy, and statements about dividends, historical results or
performance that may suggest trends for our business. These statements are
based on our current expectations, estimates and assumptions and are subject
to many risks, uncertainties and unknown future events that could cause actual
results to differ materially. Actual results may differ materially from those
set forth in this press release due to the risks and uncertainties inherent in
our business, including, without limitation: our reliance on a limited number
of customers for a substantial portion of our revenues; unpredictability and
volatility of our operating results, which include the volatility associated
with foreign currency exchange risks, our sales cycle, seasonality and other
factors; risks associated with the uncertainty in and volatility of global
economic conditions; risks associated with and possible negative consequences
of acquisitions, joint ventures, divestitures and similar transactions,
including our ability to successfully integrate HPI; effects of competition on
our software and service pricing and our business; time and expenses
associated with customers switching from competitive software and services to
our software and services; rapid technology changes in our industry; effects
of changes in or violations by us or our customers of government regulations;
costs and possible future losses or impairments relating to our acquisitions;
the financial impact of future significant restructuring and severance
charges; the impact of changes in our tax provision (benefit) or effective tax
rate; use of cash to service our debt and effects on our business of
restrictive covenants in our debt facility; our ability to obtain additional
financing as necessary to support our operations; our ability to pay dividends
in future periods; our reliance on third-party information for our software
and services; effects of system failures or security breaches on our business
and reputation; any material adverse impact of current or future litigation on
our results or business; and our dependence on a limited number of key
personnel. For a discussion of these and other factors that could impact our
operations or financial results and cause our results to differ materially
from those in the forward-looking statements, please refer to our filings with
the Securities and Exchange Commission, particularly our Quarterly Report on
Form 10-Q for the Quarter Ended March 31, 2009. Solera is under no obligation
to (and specifically disclaims any such obligation to) update or alter its
forward-looking statements whether as a result of new information, future
events or otherwise.

SOURCE Solera Holdings, Inc.

Kamal Hamid, Investor Relations of Solera Holdings, Inc., +1-858-946-1676,
kamal.hamid@audatex.com