Solera Holdings, Inc. Reports Third Quarter Fiscal Year 2012 Results

WESTLAKE, Texas, May 8, 2012 /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 third quarter of fiscal year 2012.

Results for the Third Quarter Ended March 31, 2012:

GAAP Results

• Revenue for the third quarter was $198.0 million, a 12.8% increase over the prior year third quarter revenue of $175.5 million. After adjusting for changes in foreign currency exchange rates ("FX Changes"), revenue for the third quarter increased by approximately 16.2% over the prior year third quarter revenue;
• Net income attributable to Solera Holdings, Inc. for the third quarter was $26.7 million, a 66.6% decrease over the prior year third quarter net income attributable to Solera Holdings, Inc. of $80.1 million, which is primarily attributable to a $35.2 million income tax benefit we recognized during the prior year third quarter as described below;
• Diluted net income attributable to Solera Holdings, Inc. per common share for the third quarter was $0.38, a 66.4% decrease over the prior year third quarter diluted net income attributable to Solera Holdings, Inc. per common share of $1.13, which is primarily attributable to a $35.2 million income tax benefit we recognized during the prior year third quarter as described below.

"Our top-line results in the third quarter included claims volume volatility in some of our advanced markets and strong customer adoption and claims volume growth in several of our evolving and emerging markets.  Our business also felt the impacts from macro-economic and political conditions in many of our markets.  Despite these impacts, we achieved solid total revenue growth of 16.2%," said Tony Aquila, Solera's founder, Chairman and Chief Executive Officer. "On a constant currency basis, our Adjusted EBITDA margin came in at 44.9% - up 88 basis points year-over-year and within 10 basis points of our highest Adjusted EBITDA margin ever.  This margin demonstrates our customers' clear support for our continued investments in data and profitable-innovation."

Non-GAAP Results

• Adjusted EBITDA for the third quarter was $87.7 million, a 13.4% increase over the prior year third quarter Adjusted EBITDA of $77.3 million. After adjusting for FX Changes, Adjusted EBITDA for the third quarter increased by 18.5% over the prior year third quarter Adjusted EBITDA;
• Adjusted EBITDA margin for the third quarter was 44.3%, a 24 basis point increase over the prior year third quarter Adjusted EBITDA margin of 44.1%. After adjusting for FX Changes, Adjusted EBITDA margin for the third quarter was 44.9%, an 88 basis point increase over the prior year third quarter Adjusted EBITDA margin;
• Adjusted Net Income for the third quarter was $49.3 million a 7.2% increase over the prior year third quarter Adjusted Net Income of $46.0 million;
• Adjusted Net Income per diluted common share for the third quarter was $0.70, a 7.7% increase over the prior year third quarter Adjusted Net Income per diluted common share of $0.65.

In the first quarter of fiscal year 2012, we announced the formation of the Netherlands, Germany, Austria and Switzerland ("NGAS") Region to leverage the operational and technological achievements and investments we made in the Highly Established Markets Initiative ("HEMI") Region across our markets. As a result of the creation of the NGAS Region, we transferred our Netherlands operating segment from our Americas reportable segment to our EMEA reportable segment in the first quarter of fiscal year 2012. The financial information presented below reflects the inclusion of the Netherlands in EMEA for all periods.

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