SOLERA HOLDINGS INC (SLH) filed Quarterly Report for the period ended 2009-09-30.
SOLERA HOLDINGS INC is an integrated group of leading automotive claims solutions companies with the vision to continuously improve the automobile insurance claims processing industry worldwide. The Solera companies help customers automate and simplify their automobile claims process and improve their ability to monitor and manage their businesses through data reporting and analytics. Solera Holdings Inc has a market cap of $2.52 billion; its shares were traded at around $36.25 with a P/E ratio of 23.1 and P/S ratio of 4.5. The dividend yield of Solera Holdings Inc stocks is 0.7%.
Highlight of Business Operations:
Foreign currency. During the three months ended September 30, 2009 and 2008, we generated approximately 77%, and 74% of our revenues, respectively, and incurred a majority of our costs, in currencies other than the U.S. dollar, primarily the Euro. We currently do not hedge our exposure to foreign currency risks. In our historical financial statements, we re-measure our local currency financial results in U.S. dollars based on average exchange rates prevailing during a reporting period or the exchange rate at the end of that period. These re-measurements resulted in foreign currency translation adjustments of $12.7 million, and $(34.0) million during the three months ended September 30, 2009 and 2008, respectively, which are recorded as a component of accumulated other comprehensive income in stockholders’ equity. Foreign currency transaction losses recognized in our consolidated statements of income during the three months ended September 30, 2009 and 2008 were $0.8 million for each period.
During the fifteen-month period ended September 30, 2009, the U.S. dollar has been volatile 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, $1.40 on June 30, 2009 and $1.46 on September 30, 2009. During the three months ended September 30, 2009, the U.S. dollar weakened versus the Euro by approximately 4.3% as compared to an approximately 8.9% strengthening of the U.S. dollar versus the Euro during the three months ended September 30, 2008. The weakening of the U.S. dollar had a favorable comparable impact on our revenues, but an unfavorable comparable impact on our expenses for the three months ended September 30, 2009 as compared to the three months ended September 30, 2008.
Non-cash charges. We incurred pre-tax, non-cash share-based compensation charges of $1.5 million and $1.6 million during the three months ended September 30, 2009 and 2008, respectively. We expect to recognize additional pre-tax, non-cash share-based compensation charges related to share-based awards outstanding at September 30, 2009 of approximately $16.3 million ratably over the remaining weighted-average vesting period of 2.9 years.
During the three months ended September 30, 2009, revenues increased $7.8 million, or 5.4%, including the revenues from HPI, acquired in December 2008, of $11.4 million. After adjusting for changes in foreign currency exchange rates and excluding revenues from HPI, revenues increased $5.6 million, or 3.9%, during the three months ended September 30, 2009 resulting from growth in transaction and subscription revenues in several countries from sales to new customers and increased transaction volume from and sales of new software and services to existing customers.
Our EMEA revenues increased $8.8 million, or 9.7%, to $99.1 million, including the revenues from HPI of $11.4 million. After adjusting for changes in foreign currency exchange rates and excluding revenues from HPI, EMEA revenues increased $4.7 million, or 5.2%, during the three months ended September 30, 2009 resulting from growth in transaction and subscription revenues in several countries from sales to new customers and increased transaction volume from and sales of new software and services to existing customers.
Our Americas revenues decreased $1.0 million, or 1.9%, to $51.7 million. After adjusting for changes in foreign currency exchange rates, Americas revenues increased $0.9 million, or 1.7%, during the three months ended September 30, 2009 resulting from growth in transaction and subscription revenues in several countries from sales to new customers and increased transaction volume from and sales of new software and services to existing customers.
SLH is in the portfolios of Richard Aster Jr of Meridian Fund, Ron Baron of Baron Funds.
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