UNITED STATES | ||
SECURITIES AND EXCHANGE COMMISSION | ||
Washington, D.C. 20549 | ||
CURRENT REPORT | ||
Pursuant to Section 13 or 15(d) of the | ||
Securities Exchange Act of 1934 | ||
Date of Report (Date of earliest event reported) | ||
(Exact name of registrant as specified in its charter) |
DELAWARE | ||||||||||||||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of Principal Executive Offices, including Zip Code) | ||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
EXHIBIT NO. | DESCRIPTION | |||||||
104 | Cover Page Interactive Data File, formatted in Inline XBRL (included as Exhibit 101). |
Gartner, Inc. | ||||||||
Date: February 8, 2022 | By: | /s/ Craig W. Safian | ||||||
Craig W. Safian Executive Vice President and Chief Financial Officer |
Gartner | Press Release |
(Unaudited; $ in millions, except per share amounts) | Three Months Ended | |||||||||||||||||||||||||
December 31, | Inc/(Dec) | |||||||||||||||||||||||||
2021 | 2020 | Inc/(Dec) | FX Neutral | |||||||||||||||||||||||
GAAP Metrics: | ||||||||||||||||||||||||||
Revenues | $ | 1,306 | $ | 1,113 | 17 | % | 18 | % | ||||||||||||||||||
Net income | 209 | 120 | 75 | % | na | |||||||||||||||||||||
Diluted EPS | 2.50 | 1.33 | 88 | % | na | |||||||||||||||||||||
Operating cash flow | 235 | 260 | (10) | % | na |
Non-GAAP Metrics: | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 307 | $ | 245 | 25 | % | 26 | % | ||||||||||||||||||
Adjusted EPS | 2.99 | 1.59 | 88 | % | na | |||||||||||||||||||||
Free cash flow | 214 | 237 | (10) | % | na |
Research | Conferences | Consulting | ||||||||||||||||||
Revenues | $ | 1,081 | $ | 107 | $ | 118 | ||||||||||||||
Inc/(Dec) | 17 | % | 15 | % | 26 | % | ||||||||||||||
Inc/(Dec) - FX neutral | 17 | % | 16 | % | 27 | % | ||||||||||||||
Gross contribution | $ | 801 | $ | 66 | $ | 46 | ||||||||||||||
Inc/(Dec) | 20 | % | (9) | % | 87 | % | ||||||||||||||
Contribution margin | 74 | % | 61 | % | 39 | % |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||
GAAP net income | $ | 209 | $ | 120 | $ | 794 | $ | 267 | |||||||||||||||||||||
Interest expense, net | 31 | 26 | 117 | 114 | |||||||||||||||||||||||||
Gain on event cancellation insurance claims (a) | (17) | — | (152) | — | |||||||||||||||||||||||||
Loss on extinguishment of debt (b) | — | — | — | 45 | |||||||||||||||||||||||||
Other (income) expense, net | (6) | (4) | (18) | 6 | |||||||||||||||||||||||||
Tax (benefit) provision | (32) | 37 | 176 | 59 | |||||||||||||||||||||||||
Operating income | 185 | 178 | 916 | 490 | |||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Stock-based compensation expense (c) | 17 | 6 | 99 | 63 | |||||||||||||||||||||||||
Depreciation, amortization and accretion (d) | 52 | 57 | 213 | 220 | |||||||||||||||||||||||||
Loss on impairment of lease related assets,net (e) | 50 | — | 50 | — | |||||||||||||||||||||||||
Acquisition and integration charges and other non-recurring items (f) | 3 | 4 | 10 | 45 | |||||||||||||||||||||||||
Adjusted EBITDA | $ | 307 | $ | 245 | $ | 1,288 | $ | 818 | |||||||||||||||||||||
(a) | Consists of the gain on event cancellation insurance claims for events cancelled in 2020. | ||||||||||||||||||||||||||||
(b) | Includes $30.8 million early redemption premium payment and $14.0 million write-off of unamortized deferred financing fees related to the early repayment of the 2025 Senior Notes and the 2016 Credit Agreement. | ||||||||||||||||||||||||||||
(c) | Consists of charges for stock-based compensation awards. | ||||||||||||||||||||||||||||
(d) | Includes depreciation expense, amortization of intangibles and accretion on asset retirement obligations. | ||||||||||||||||||||||||||||
(e) | Includes impairment loss for lease related assets, net of a reduction in lease liabilities. | ||||||||||||||||||||||||||||
(f) | Consists of incremental and directly-related charges related to acquisitions, facility-related exit costs, workforce reductions and other non-recurring items. | ||||||||||||||||||||||||||||
Three Months Ended December 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Amount | Per Share | Amount | Per Share | |||||||||||||||||||||||
GAAP net income | $ | 209 | $ | 2.50 | $ | 120 | $ | 1.33 | ||||||||||||||||||
Acquisition and other adjustments: | ||||||||||||||||||||||||||
Amortization of acquired intangibles (a) | 26 | 0.31 | 30 | 0.34 | ||||||||||||||||||||||
Acquisition and integration charges and other non-recurring items (b), (c) | 4 | 0.05 | 5 | 0.05 | ||||||||||||||||||||||
Gain on event cancellation insurance claims (d) | (17) | (0.20) | — | — | ||||||||||||||||||||||
Loss on impairment of lease related assets,net (e) | 50 | 0.59 | — | — | ||||||||||||||||||||||
Gain on de-designated interest rate swaps (h) | (8) | (0.10) | (3) | (0.03) | ||||||||||||||||||||||
Tax impact of adjustments (i) | (13) | (0.16) | (9) | (0.10) | ||||||||||||||||||||||
Adjusted net income and Adjusted EPS (j) | $ | 251 | $ | 2.99 | $ | 143 | $ | 1.59 | ||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||
Amount | Per Share | Amount | Per Share | ||||||||||||||||||||||||||
GAAP net income | $ | 794 | $ | 9.21 | $ | 267 | $ | 2.96 | |||||||||||||||||||||
Acquisition and other adjustments: | |||||||||||||||||||||||||||||
Amortization of acquired intangibles (a) | 110 | 1.27 | 125 | 1.39 | |||||||||||||||||||||||||
Acquisition and integration charges and other non-recurring items (b), (c) | 14 | 0.17 | 53 | 0.59 | |||||||||||||||||||||||||
Gain on event cancellation insurance claims (d) | (152) | (1.77) | — | — | |||||||||||||||||||||||||
Loss on impairment of lease related assets,net (e) | 50 | 0.57 | — | — | |||||||||||||||||||||||||
Loss on extinguishment of debt (f) | — | — | 45 | 0.50 | |||||||||||||||||||||||||
Amortization of deferred swap losses from de-designation (g) | — | — | 10 | 0.11 | |||||||||||||||||||||||||
Gain on de-designated interest rate swaps (h) | (20) | (0.23) | (2) | (0.02) | |||||||||||||||||||||||||
Tax impact of adjustments (i) | — | — | (58) | (0.64) | |||||||||||||||||||||||||
Adjusted net income and Adjusted EPS (j) | $ | 795 | $ | 9.22 | $ | 440 | $ | 4.89 | |||||||||||||||||||||
(a) | Consists of non-cash amortization charges from acquired intangibles. | ||||||||||||||||||||||||||||
(b) | Consists of incremental and directly-related charges related to acquisitions, facility-related exit costs, workforce reductions and other non-recurring items. | ||||||||||||||||||||||||||||
(c) | Includes the amortization and write-off of deferred financing fees, which are recorded in Interest expense, net in the Company’s accompanying Condensed Consolidated Statements of Operations and in the Adjusted EBITDA table above. | ||||||||||||||||||||||||||||
(d) | Consists of the gain on event cancellation insurance claims for events cancelled in 2020. | ||||||||||||||||||||||||||||
(e) | Includes impairment loss for lease related assets, net of a reduction in lease liabilities. | ||||||||||||||||||||||||||||
(f) | Includes $30.8 million early redemption premium payment and $14.0 million write-off of unamortized deferred financing fees related to the early repayment of the 2025 Senior Notes and the 2016 Credit Agreement. | ||||||||||||||||||||||||||||
(g) | Consist of the non-cash loss on de-designated interest rate swaps as a result of the payment under the then outstanding 2016 Credit Agreement term loan and revolving credit facility on June 30, 2020. | ||||||||||||||||||||||||||||
(h) | Represents the fair value adjustment for interest rate swaps after de-designation. | ||||||||||||||||||||||||||||
(i) | The blended effective tax rates on the adjustments were approximately 24% and 28% for the three months ended December 31, 2021 and 2020, respectively, and (8)% and 25% for the years ended December 31, 2021 and 2020, respectively. | ||||||||||||||||||||||||||||
(j) | Adjusted EPS was calculated based on 83.8 million and 90.1 million diluted shares for the three months ended December 31, 2021 and 2020, respectively, and 86.2 million and 90.0 million diluted shares for the years ended December 31, 2021 and 2020, respectively. | ||||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
GAAP cash provided by operating activities | $ | 235 | $ | 260 | $ | 1,312 | $ | 903 | ||||||||||||||||||
Cash paid for capital expenditures | (21) | (23) | (60) | (84) | ||||||||||||||||||||||
Free cash flow | $ | 214 | $ | 237 | $ | 1,253 | $ | 819 | ||||||||||||||||||
Three Months Ended | |||||||||||
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Revenues: | |||||||||||
Research | $ | 1,081.3 | $ | 925.6 | |||||||
Conferences | 107.0 | 93.2 | |||||||||
Consulting | 118.0 | 94.0 | |||||||||
Total revenues | 1,306.3 | 1,112.8 | |||||||||
Costs and expenses: | |||||||||||
Cost of services and product development | 399.6 | 351.5 | |||||||||
Selling, general and administrative | 667.4 | 526.1 | |||||||||
Depreciation | 25.8 | 25.9 | |||||||||
Amortization of intangibles | 25.8 | 30.4 | |||||||||
Acquisition and integration charges | 2.3 | 0.8 | |||||||||
Total costs and expenses | 1,120.9 | 934.7 | |||||||||
Operating income | 185.4 | 178.1 | |||||||||
Interest expense, net | (31.5) | (26.4) | |||||||||
Gain on event cancellation insurance claims | 16.8 | — | |||||||||
Other income, net | 6.4 | 4.4 | |||||||||
Income before income taxes | 177.1 | 156.1 | |||||||||
(Benefit) provision for income taxes | (32.3) | 36.5 | |||||||||
Net income | $ | 209.4 | $ | 119.6 | |||||||
Net income per share: | |||||||||||
Basic | $ | 2.54 | $ | 1.34 | |||||||
Diluted | $ | 2.50 | $ | 1.33 | |||||||
Weighted average shares outstanding: | |||||||||||
Basic | 82.5 | 89.3 | |||||||||
Diluted | 83.8 | 90.1 |
Cover Page |
Feb. 03, 2022 |
---|---|
Cover [Abstract] | |
Amendment Flag | false |
Entity Central Index Key | 0000749251 |
Document Type | 8-K |
Document Period End Date | Feb. 03, 2022 |
Entity Registrant Name | GARTNER, INC. |
Entity File Number | 1-14443 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 04-3099750 |
Entity Address, Address Line One | P.O. Box 10212 |
Entity Address, Address Line Two | 56 Top Gallant Road |
Entity Address, City or Town | Stamford |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06902-7747 |
City Area Code | 203 |
Local Phone Number | 316-1111 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Title of 12(b) Security | Common Stock, $0.0005 par value per share |
Trading Symbol | IT |
Security Exchange Name | NYSE |
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