Solera Holdings, Inc. Reports Second Quarter 2013 Results

Thu Feb 7, 2013 4:07pm EST

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Second Quarter Revenue of $209.2 Million, up 7.2% on a GAAP Basis and up 9.0% on
a Constant Currency Basis; Adjusted EBITDA Margin of 43.3% on a Reported Basis
and 43.4% on a Constant Currency Basis; Company Raises Guidance; Company
Announces Quarterly Dividend










WESTLAKE, Texas,  Feb. 7, 2013  /PRNewswire/ -- 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 second
quarter of fiscal year 2013.

Results for the Second Quarter Ended December 31, 2012:

GAAP Results

* Revenue for the second quarter was  $209.2 million, a 7.2% increase over the
prior year second quarter revenue of  $195.1 million. After adjusting for
changes in foreign currency exchange rates ("FX Changes"), revenue for the
second quarter increased by approximately 9.0% over the prior year second
quarter revenue;  
* Net income attributable to Solera Holdings, Inc. for the second quarter was 
$19.8 million, a 30.0% decrease over the prior year second quarter net income
attributable to Solera Holdings, Inc. of  $28.2 million, which is primarily
attributable to acquisition related costs resulting from acquisitions completed
during fiscal year 2013 to date and additional interest expense resulting from
the issuance of  $400 million  of additional senior unsecured notes in  April
2012;  
* Diluted net income attributable to Solera Holdings, Inc. per common share for
the second quarter was  $0.28, a 28.2% decrease over the prior year second
quarter diluted net income attributable to Solera Holdings, Inc. per common
share of  $0.39, which decrease is primarily related to the decrease in net
income attributable to Solera Holdings, Inc.

"I am pleased to report a good second quarter with 9.0% revenue growth and an
Adjusted EBITDA margin of 43.4%, both on a constant currency basis and above
consensus," said Tony Aquila, Solera's founder, Chairman and Chief Executive
Officer.  "This solid performance was driven by the leverage in our global
platform and continued adoption of our high-ROI services as well as the benefits
from our diversification efforts over the last four fiscal years.  These factors
continue to give us the confidence to raise our full-year guidance."

Non-GAAP Results

* Adjusted EBITDA for the second quarter was  $90.5 million, a 6.7% increase
over the prior year second quarter Adjusted EBITDA of  $84.9 million. After
adjusting for FX Changes, Adjusted EBITDA for the second quarter increased by
8.8% over the prior year second quarter Adjusted EBITDA;  
* Adjusted EBITDA margin for the second quarter was 43.3%, a 23 basis point
decrease over the prior year second quarter Adjusted EBITDA margin of 43.5%.
After adjusting for FX Changes, Adjusted EBITDA margin for the second quarter
was 43.4%, a 7 basis point decrease over the prior year second quarter Adjusted
EBITDA margin;  
* Adjusted Net Income for the second quarter was  $47.7 million, a 1.1% increase
over the prior year second quarter Adjusted Net Income of  $47.2 million;  
* Adjusted Net Income per diluted common share for the second quarter was 
$0.69, a 4.5% increase over the prior year second quarter Adjusted Net Income
per diluted common share of  $0.66.

Business Statistics

* EMEA revenues were  $117.2 million  for the second quarter, representing a
0.8% increase over the prior year second quarter. After adjusting for FX
Changes, EMEA revenues for the second quarter increased 3.2% over the prior year
second quarter;  
* Americas revenues were  $92.0 million  for the second quarter, representing a
16.8% increase over the prior year second quarter. After adjusting for FX
Changes, Americas revenues for the second quarter increased 17.5% over the prior
year second quarter;  
* Revenues from insurance company customers were  $98.3 million  for the second
quarter, representing an 11.0% increase over the prior year second quarter.
After adjusting for FX Changes, revenues from insurance company customers for
the second quarter increased 12.8% over the prior year second quarter;  
* Revenues from collision repair facility customers were  $65.7 million  for the
second quarter, representing a 2.7% increase over the prior year second quarter.
After adjusting for FX Changes, revenues from collision repair facility
customers for the second quarter increased 4.5% over the prior year second
quarter;  
* Revenues from independent assessors were  $18.7 million  for the second
quarter, representing a 3.7% decrease over the prior year second quarter. After
adjusting for FX Changes, revenues from independent assessors for the second
quarter increased 0.4% over the prior year second quarter;  
* Revenues from automotive recycling, salvage and other customers were  $26.5
million  for the second quarter, representing a 14.2% increase over the prior
year second quarter. After adjusting for FX Changes, revenues from automotive
recycling, salvage and other customers for the second quarter increased 13.9%
over the prior year second quarter.

Fiscal Year 2013 Outlook:

We are updating our previously issued outlook for our full fiscal year ending
June 30, 2013 as follows:

                                                     Previous Fiscal Year           Current Fiscal Year          
                                                     
2013 Outlook                  
2013 Outlook                
 Revenues                                            $810 million - $818 million    $829 million - $835 million  
 Net Income attributable to Solera Holdings, Inc.    $85 million - $93 million      $85 million - $91 million    
 Adjusted EBITDA                                     $345 million - $353 million    $353 million - $359 million  
 Adjusted Net Income                                 $175 million - $180 million    $181 million - $185 million  
 Adjusted Net Income per diluted common share        $2.52 - $2.60                  $2.60 - $2.66                


The current fiscal year 2013 outlook above assumes constant currency exchange
rates from those currently prevailing, no acquisitions of businesses, no
repurchases of our common stock, and an assumed 28% tax rate to calculate
Adjusted Net Income.

Exchange rates between most of the major foreign currencies we use to transact
our business and the U.S. dollar have fluctuated significantly over the last few
years and we expect that they will continue to fluctuate. The majority of our
revenues and costs are denominated in Euros, Pound Sterling, Swiss francs,
Canadian dollars and other international currencies. The following table
provides the average quarterly exchange rates for the Euro and Pound Sterling
since the beginning of fiscal year 2012:

 Period                              Average Euro-to-            Average Pound             
                                     
U.S. Dollar                
Sterling-to-U.S.         
                                     
Exchange Rate              
Dollar Exchange          
                                                                 
Rate                     
 Quarter ended September 30, 2011    $       1.42              $       1.61            
 Quarter ended December 31, 2011     1.35                       1.57                     
 Quarter ended March 31, 2012        1.31                       1.57                     
 Quarter ended June 30, 2012         1.28                       1.58                     
 Quarter ended September 30, 2012    1.25                       1.58                     
 Quarter ended December 31, 2012     1.30                       1.61                     


During the three months ended December 31, 2012 as compared to the three months
ended December 31, 2011, the movement of the U.S. dollar against most major
foreign currencies we use to transact our business was mixed. Relative to the
Euro, the average U.S. dollar strengthened by 3.9%, which decreased our revenues
and expenses for the three months ended December 31, 2012 relating to the Euro
markets in which we transact business. In contrast, the average U.S. dollar
weakened versus the Pound Sterling by 2.1%, which increased our revenues and
expenses for the three months ended December 31, 2012 relating to the  United
Kingdom. A hypothetical 5% increase or decrease in the U.S. dollar versus other
currencies in which we transact our business would have resulted in an increase
or decrease, as the case may be, to our revenues of  $7.1 million  and  $13.8
million  during the three and six months ended December 31, 2012, respectively.

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 attributable 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. When we refer to consensus, we
mean the consensus results, on an actual currency basis, of certain analysts
that cover us, as reported on Thompson First Call.  

Quarterly Dividend:

The Audit Committee of our Board of Directors approved the payment of a
quarterly cash dividend of  $0.125  per share of outstanding common stock and
per outstanding restricted stock unit. The Audit Committee also approved a
quarterly stock dividend equivalent of  $0.125  per outstanding restricted stock
unit granted to certain of our executive officers since fiscal year 2011 in lieu
of the cash dividend, which dividend equivalent will be paid to the restricted
stock unit holders as the restricted stock unit vests. The dividends are payable
on  March 6, 2013  to stockholders and restricted stock unit holders of record
at the close of business on  February 21, 2013.

Earnings Conference Call:

We will host our second quarter ended December 31, 2012 earnings call today at 
5:00 p.m. (Eastern Time)  - February 7, 2013. The conference call will be
webcast live in listen-only mode and can be accessed by visiting the Investor
Center section of the Solera website:  www.solerainc.com. A webcast replay will
be available on the website until  11:59 p.m. EST  on February 21, 2013. A live
audiocast will also be accessible to the public by calling (800) 299-8538 or
from outside the U.S., (617) 786-2902. When prompted, the following access is
required: 17357846. Callers should dial in approximately 10 minutes before the
call begins. For those unable to participate in the live audiocast, a replay
will be available until  11:59 p.m. EST  on February 21, 2013. To access the
replay, dial (888) 286-8010 or from outside the U.S., (617) 801-6888, and enter
the following access code when prompted: 96058846.

 SOLERA HOLDINGS, INC.                                                                                                                                                                                                                                
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME                                                                                                                                                                                                         
 
FOR THE THREE and SIX MONTHS ENDED DECEMBER 31, 2012 AND 2011                                                                                                                                                                                       
 
(In thousands, except per share amounts)                                                                                                                                                                                                            
 
(Unaudited)                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                      
                                                                                                                          Three Months Ended December 31,                              Six Months Ended December 31,                              
                                                                                                                          2012                            2011                       2012                            2011                     
 Revenues                                                                                                                 $      209,232                $      195,141           $      404,952                $      393,835         
 Cost of revenues:                                                                                                                                                                                                                            
 Operating expenses                                                                                                       45,102                         41,999                    87,442                         85,617                  
 Systems development and programming costs                                                                                20,543                         17,893                    38,400                         36,938                  
 Total cost of revenues (excluding depreciation and amortization)                                                         65,645                         59,892                    125,842                        122,555                 
 Selling, general and administrative expenses                                                                             58,016                         52,010                    108,925                        100,431                 
 Depreciation and amortization                                                                                            25,585                         25,770                    49,780                         51,778                  
 Restructuring charges, asset impairments, and other costs associated with exit and disposal activities                   1,739                          113                       3,193                          310                     
 Acquisition and related costs                                                                                            8,821                          2,395                     11,979                         3,752                   
 Interest expense                                                                                                         17,486                         12,352                    34,786                         24,646                  
 Other expense, net                                                                                                       336                            697                       735                            753                     
                                                                                                                          177,628                        153,229                   335,240                        304,225                 
 Income before provision for income taxes                                                                                 31,604                         41,912                    69,712                         89,610                  
 Income tax provision                                                                                                     9,156                          10,775                    10,853                         24,028                  
 Net income                                                                                                               22,448                         31,137                    58,859                         65,582                  
 Less: Net income attributable to noncontrolling interests                                                                2,680                          2,913                     5,450                          6,119                   
 Net income attributable to Solera Holdings, Inc.                                                                         $      19,768                 $      28,224            $      53,409                 $      59,463          
 Net income attributable to Solera Holdings, Inc. per common share:                                                                                                                                                                           
 Basic                                                                                                                    $      0.28                   $      0.40              $      0.77                   $      0.84            
 Diluted                                                                                                                  $      0.28                   $      0.39              $      0.77                   $      0.83            
 Dividends paid per share                                                                                                 $      0.125                  $      0.10              $      0.25                   $      0.20            
 Weighted-average shares used in the calculation of net income attributable to Solera Holdings, Inc. per common share:                                                                                                                        
 Basic                                                                                                                    68,781                         70,784                    68,849                         70,772                  
 Diluted                                                                                                                  69,062                         71,127                    69,092                         71,149                  


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 common share. We believe that
Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per diluted common
share are useful to investors in providing information regarding our operating
results. 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 common 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 common 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 common
share have limitations as analytical tools, and should not be considered in
isolation or as a substitute for net income, net income 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 common 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
common share as supplemental information.

* Adjusted EBITDA is a non-GAAP financial measure that represents GAAP net
income attributable to Solera Holdings, Inc., excluding (i) interest expense,
(ii) provision for income taxes, (iii) depreciation and amortization, (iv)
stock-based compensation expense, (v) restructuring charges, asset impairments,
and other costs associated with exit and disposal activities, (vi) other
(income) expense, net, (vii) litigation related expenses, and (viii) acquisition
and related costs. Acquisition and related costs include legal and professional
fees and other transaction costs associated with completed and contemplated
business combinations and asset acquisitions, costs associated with integrating
acquired businesses, including costs incurred to eliminate workforce
redundancies and for product rebranding, and other charges incurred as a direct
result of our acquisition efforts. These other charges include changes to the
fair value of contingent purchase consideration, acquired assets and assumed
liabilities subsequent to the completion of the purchase price allocation,
purchase price that is deemed to be compensatory in nature, incentive
compensation arrangements with continuing employees of acquired companies and
gains and losses resulting from the settlement of a pre-existing contractual
relationship with an acquiree. A reconciliation of our Adjusted EBITDA to GAAP
net income attributable to Solera Holdings, Inc., the most directly comparable
GAAP measure, is provided in the attached table.

 SOLERA HOLDINGS, INC.                                                                                                                                                                                                                     
 
RECONCILIATION TO ADJUSTED EBITDA                                                                                                                                                                                                        
 
FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2012 AND 2011                                                                                                                                                                            
 
(In thousands)                                                                                                                                                                                                                           
 
(Unaudited)                                                                                                                                                                                                                              
                                                                                                                                                                                                                                           
                                                                                                                Three Months Ended December 31,                            Six Months Ended December 31,                              
                                                                                                                2012                              2011                    2012                            2011                     
 Net income attributable to Solera Holdings, Inc.                                                               $       19,768                  $       28,224        $      53,409                 $      59,463          
 Add: Income tax provision                                                                                      9,156                            10,775                 10,853                         24,028                  
 Net income attributable to Solera Holdings, Inc. before income tax provision                                   28,924                           38,999                 64,262                         83,491                  
 Add: Depreciation and amortization                                                                             25,585                           25,770                 49,780                         51,778                  
 Add: Restructuring charges, asset impairments, and other costs associated with exit and disposal activities    1,739                            113                    3,193                          310                     
 Add: Acquisition and related costs                                                                             8,821                            2,395                  11,979                         3,752                   
 Add: Litigation related expenses                                                                               529                              -                      979                            -                       
 Add: Interest expense                                                                                          17,486                           12,352                 34,786                         24,646                  
 Add: Other expense, net                                                                                        336                              697                    735                            753                     
 Add: Stock-based compensation expense                                                                          7,095                            4,533                  11,119                         8,139                   
 Adjusted EBITDA                                                                                                $       90,515                  $       84,859        $      176,833                $      172,869         


* Adjusted Net Income is a non-GAAP financial measure that represents GAAP net
income attributable to Solera Holdings, Inc., excluding (i) provision for income
taxes, (ii) amortization of acquired intangible assets, (iii) stock-based
compensation expense, (iv) restructuring charges, asset impairments, and other
costs associated with exit and disposal activities, (v) other (income) expense,
not including interest income, (vi) litigation related expenses, and (vii)
acquisition and related costs. From this amount, we subtract an assumed
provision for income taxes to arrive at Adjusted Net Income. We assume a 28%
income tax rate as an approximation of our long-term effective corporate income
tax rate, which includes certain benefits from net operating loss carryforwards,
tax credits, tax deductible goodwill and amortization, and certain holding
companies in low tax-rate jurisdictions. A reconciliation of our Adjusted Net
Income to GAAP net income attributable to Solera Holdings, Inc., the most
directly comparable GAAP measure, is provided in the attached table.  
* Adjusted Net Income per diluted common 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 used in the calculation of GAAP net
income attributable to Solera Holdings, Inc. per diluted common share. A
reconciliation of our Adjusted Net Income per diluted common share to GAAP net
income attributable to Solera Holdings, Inc. per diluted common share, the most
directly comparable GAAP measure, is provided in the attached table.

 SOLERA HOLDINGS, INC.                                                                                                                                                                                                                                              
 
RECONCILIATION TO ADJUSTED NET INCOME                                                                                                                                                                                                                             
 
FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2012 AND 2011                                                                                                                                                                                                     
 
(In thousands, except per share amounts)                                                                                                                                                                                                                          
 
(Unaudited)                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                     
                                                                                                                                              Three Months Ended December 31,                     Six Months Ended December 31,               
                                                                                                                                              2012                        2011                  2012                     2011             
 Net income attributable to Solera Holdings, Inc.                                                                                             $        19,768            $        28,224      $       53,409          $       59,463  
 Add: Income tax provision                                                                                                                    9,156                       10,775                10,853                   24,028           
 Net income attributable to Solera Holdings, Inc. before income tax provision                                                                 28,924                      38,999                64,262                   83,491           
 Add: Amortization of acquisition-related intangibles                                                                                         18,569                      18,775                35,249                   38,231           
 Add: Restructuring charges, asset impairments, and other costs associated with exit and disposal activities                                  1,739                       113                   3,193                    310              
 Add: Acquisition and related costs                                                                                                           8,821                       2,395                 11,979                   3,752            
 Add: Litigation related expenses                                                                                                             529                         -                     979                      -                
 Add: Other expense, net excluding interest income                                                                                            637                         765                   1,155                    1,049            
 Add: Stock-based compensation expense                                                                                                        7,095                       4,533                 11,119                   8,139            
 Adjusted Net Income before income tax provision                                                                                              66,314                      65,580                127,936                  134,972          
 Less: Assumed provision for income taxes at 28%                                                                                              (18,568)                    (18,362)              (35,822)                 (37,792)         
 Adjusted Net Income                                                                                                                          $        47,746            $        47,218      $       92,114          $       97,180  
 Adjusted Net Income per share:                                                                                                                                                                                                                 
 Basic                                                                                                                                        $        0.69              $        0.67        $       1.34            $       1.37    
 Diluted                                                                                                                                      $        0.69              $        0.66        $       1.33            $       1.37    
 Weighted-average shares used in the calculation of GAAP Net Income attributable to Solera Holdings, Inc. and Adjusted Net Income per share:                                                                                                                
 Basic                                                                                                                                        68,781                      70,784                68,849                   70,772           
 Diluted                                                                                                                                      69,062                      71,127                69,092                   71,149           


 SOLERA HOLDINGS, INC.                                                                                                                                                                                                     
 
CONDENSED CONSOLIDATED BALANCE SHEETS                                                                                                                                                                                    
 
AS OF DECEMBER 31, 2012 AND JUNE 30, 2012                                                                                                                                                                                
 
(In thousands, except per share amounts)                                                                                                                                                                                 
 
(Unaudited)                                                                                                                                                                                                              
                                                                                                                                                              December 31, 2012              June 30, 2012              
 ASSETS                                                                                                                                                                                                                 
 Current assets:                                                                                                                                                                                                        
 Cash and cash equivalents                                                                                                                                    $       448,244              $      508,246           
 Accounts receivable, net of allowance for doubtful accounts of $2,383 and $2,356 at December 31, 2012 and June 30, 2012, respectively                        126,713                       129,264                   
 Other receivables                                                                                                                                            15,744                        20,953                    
 Other current assets                                                                                                                                         25,508                        23,015                    
 Deferred income tax assets                                                                                                                                   5,836                         7,709                     
 Total current assets                                                                                                                                         622,045                       689,187                   
 Property and equipment, net                                                                                                                                  61,928                        58,533                    
 Goodwill                                                                                                                                                     1,097,380                     999,892                   
 Intangible assets, net                                                                                                                                       368,783                       329,741                   
 Other noncurrent assets                                                                                                                                      23,963                        27,209                    
 Noncurrent deferred income tax assets                                                                                                                        65,245                        47,254                    
 Total assets                                                                                                                                                 $       2,239,344            $      2,151,816         
 LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                   
 Current liabilities:                                                                                                                                                                                                   
 Accounts payable                                                                                                                                             $       20,226               $      26,940            
 Accrued expenses and other current liabilities                                                                                                               150,987                       139,276                   
 Income taxes payable                                                                                                                                         8,825                         7,279                     
 Deferred income tax liabilities                                                                                                                              1,616                         2,216                     
 Current portion of long-term debt                                                                                                                            2,953                         2,861                     
 Total current liabilities                                                                                                                                    184,607                       178,572                   
 Long-term debt                                                                                                                                               1,149,691                     1,143,012                 
 Other noncurrent liabilities                                                                                                                                 43,519                        32,181                    
 Noncurrent deferred income tax liabilities                                                                                                                   28,273                        22,067                    
 Total liabilities                                                                                                                                            1,406,090                     1,375,832                 
 Redeemable noncontrolling interests                                                                                                                          88,976                        88,603                    
 Stockholders' equity:                                                                                                                                                                                                  
 Solera Holdings, Inc. stockholders' equity:                                                                                                                                                                            
 Common shares, $0.01 par value: 150,000 shares authorized; 68,835 and 68,895 issued and outstanding as of December 31, 2012 and June 30, 2012, respectively  586,271                       582,693                   
 Retained earnings                                                                                                                                            168,753                       141,814                   
 Accumulated other comprehensive loss                                                                                                                         (19,999)                      (47,273)                  
 Total Solera Holdings, Inc. stockholders' equity                                                                                                             735,025                       677,234                   
 Noncontrolling interests                                                                                                                                     9,253                         10,147                    
 Total stockholders' equity                                                                                                                                   744,278                       687,381                   
 Total liabilities and stockholders' equity                                                                                                                   $       2,239,344            $      2,151,816         


 SOLERA HOLDINGS, INC.                                                                                                                      
 
SELECTED STATEMENT OF CASH FLOWS INFORMATION                                                                                              
 
FOR THE SIX MONTHS ENDED DECEMBER 31, 2012 AND 2011                                                                                       
 
(In thousands)                                                                                                                            
 
(Unaudited)                                                                                                                               
                                                                                Six Months Ended December 31,                              
                                                                                2012                            2011                     
 Net cash provided by operating activities                                      $      113,785                $      111,584         
 Net cash used in investing activities                                          (133,656)                      (28,513)                
 Net cash used in financing activities                                          (48,829)                       (70,135)                
 Effect of foreign currency exchange rate changes on cash and cash equivalents  8,698                          (30,512)                
 Net change in cash and cash equivalents                                        (60,002)                       (17,576)                
 Cash and cash equivalents, beginning of period                                 508,246                        371,101                 
 Cash and cash equivalents, end of period                                       $      448,244                $      353,525         
                                                                                                                                         
 Supplemental cash flow information:                                                                                                     
 Cash paid for interest                                                         $      33,949                 $      23,320          
 Cash paid for income taxes                                                     $      21,961                 $      17,492          
                                                                                                                                         
 Supplemental disclosure of non-cash investing and financing activities:                                                                 
 Capital assets financed                                                        $      207                    $      246             
 Accrued contingent purchase consideration                                      $      19,632                 $      3,275           


About Solera:

Solera is the leading global provider of software and services to the automobile
insurance claims processing industry. Solera is active in over 60 countries
across six continents. The Solera companies include Audatex in  the United
States,  Canada, and in more than 45 additional countries, Informex in  Belgium 
and  Greece, Sidexa in  France, ABZ and Market Scan in  the Netherlands, HPI in
the  United Kingdom, Hollander serving the North American recycling market,
AUTOonline providing salvage disposition in a number of European and Latin
American countries, IMS providing medical review services, and Explore providing
data and analytics to  United States  property and casualty insurers. 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 expectations regarding our prospects and business outlook for fiscal
year 2013; our expectations and beliefs regarding changes in foreign currency
exchange rates; and statements about dividends, acquisitions, common stock
repurchases, future revenue, our effective tax rate, continued adoption of our
services, the benefits of our diversification efforts and other 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, global economic conditions, acquisitions and other factors; risks
associated with and possible negative consequences of acquisitions, joint
ventures, divestitures and similar transactions, including our ability to
successfully integrate our acquired businesses; 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; risks associated with
operating in multiple countries; effects of changes in or violations by us or
our customers of government regulations; use of cash to service our debt and
effects on our business of restrictive covenants in our debt facility and
indenture; our ability to obtain additional financing as necessary to support
our operations, including Mission 2020; 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; our ability to pay dividends or
repurchase shares in future periods; our dependence on a limited number of key
personnel; effects of system failures or security breaches on our business and
reputation; our reliance on third-party information for our software and
services; and any material adverse impact of current or future litigation on our
results or business. 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 September 30, 2012. Solera is under no
obligation to (and specifically disclaims any such obligation to) update or
alter our 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@solerainc.com

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