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The Corporate Executive Board Reports Second-Quarter Diluted Earnings Per Share of $0.46 and 16% Revenue Growth

CEB Announces the Acquisition of Information Technology Toolbox,

Inc. and Incremental $125 Million in Repurchase Authorization

WASHINGTON--(BUSINESS WIRE)--July 24, 2007--The Corporate Executive Board Company (CEB or the Company) (NASDAQ: EXBD) today announces financial results for the second quarter ended June 30, 2007. Revenues for the second quarter increased 16.2% to $129.7 million from $111.7 million for the second quarter of 2006. Net income decreased 2.5% to $17.3 million from $17.8 million. Diluted earnings per share for the second quarter of 2007 increased 7.0% to $0.46 from $0.43 for the second quarter of 2006.

For the first six months of 2007, revenues were $254.2 million, a 17.3% increase from $216.7 million for the first half of 2006. Net income for the first six months of 2007 increased 5.2% to $36.7 million from $34.9 million for the first six months of 2006. Earnings per diluted share for the first six months of 2007 were $0.96, a 12.9% increase from $0.85 for the first half of 2006.

Contract Value growth in the second quarter of 2007 was 18.3%, as a result of continued cross-sales to existing clients, new client acquisitions, and new program launches. The average cross-sell ratio was 3.56, reflecting cross-sell ratios of 4.03 in the Company's large corporate market and 1.25 in the middle market. Growth from cross sales, new clients and new programs were within their guidance ranges. Companies joining their first CEB program in the quarter included: The Associated Press; Biomet, Inc.; Hertz Global Holdings, Inc.; MGM MIRAGE; and Wynn Resorts, Limited. Growth from new programs was in-line with expectations.

Tom Monahan, Chief Executive Officer commented, "We are pleased that we achieved our objectives for the quarter, and made substantial progress against the full-year objectives that we outlined at the end of the first quarter. We achieved our sales force hiring plan earlier than anticipated, ending the quarter with 290 sales teams, and are now working to make sure those new sales teams become successful at CEB. In addition we are focused on realizing returns from the other sales force investments we put in place at year end. While it is too early to declare victory, we are encouraged by the progress we made across Q2. By year-end 2007, I hope to be able to report that not only did we execute well against our 2007 guidance, but also that we further enhanced our capabilities to secure and serve new members as the organization grows.

"Today, I am pleased to announce the third and fourth of the six to seven membership programs we will launch in 2007, the Sales Leadership Roundtable (SLR) and The Investment Management Executive Council (IMEC). SLR serves senior sales executives at middle market companies and IMEC serves chief investment officers at investment management companies. This launch brings our total number of membership-based programs to 46."

The Company announces that the Board of Directors elected Thomas L. Monahan III to be Chairman of the Board of Directors effective upon the date of James J. McGonigle's resignation. As part of his transition, Mr. McGonigle tendered his resignation as Chairman of the Board of Directors and as a Director effective December 31, 2007. As per his employment agreement, Mr. McGonigle will remain an employee of the Company and an advisor to the CEO through April 2009.

Acquisition of Information Technology Toolbox, Inc.

On July 24, 2007, the Company entered into an Agreement and Plan of Merger ("Agreement") with Information Technology Toolbox, Inc. ("ITtoolbox"). ITtoolbox is an online community of more than one million IT and other professionals that enables anyone to access the collective knowledge of a worldwide audience of experienced professionals. In doing so, ITtoolbox satisfies the need for practical and timely information for an infinite number of possible challenges in the complex and rapidly changing field of information technology. Under the terms of the Agreement, the initial purchase price of approximately $58.9 million will be increased if certain financial thresholds are achieved during a twelve month period on or before December 31, 2010. Any additional payments would be recorded as a purchase price adjustment.

Mr. Monahan commented, "We are delighted to announce the acquisition of ITtoolbox, which allows us to extend and accelerate our strategy of enabling executives and professionals to connect to our resources and to one another to solve urgent problems. With over one million active users among IT professionals, ITtoolbox provides us with both a great model for engaging IT professionals who would not be targets for current CEB programs, and an obvious pool of potential future CEB program subscribers."

Share Repurchase

During the six months ended June 30, 2007, the Company repurchased approximately 3,018,000 shares of its common stock at a total cost of approximately $218.0 million. The Company also announced that its Board of Directors authorized additional share repurchases for up to $125 million, which when combined with the remaining balance of the existing share repurchase authorization, provides CEB the opportunity to repurchase up to approximately $149.2 million of its shares. Repurchases will continue to be made in open market and privately negotiated transactions subject to market conditions. No minimum number of shares has been fixed. The Company is funding its share repurchases with cash on hand and cash generated from operations.

Outlook for 2007

The following statements summarize the Company's guidance for 2007 and include the impact of the acquisition of ITtoolbox. The Company's target for annual growth in revenues is between 15% and 20% for the full year 2007. On a quarterly basis, the Company expects a revenue distribution as follows: Approximately $135-$141 million for the third quarter and $143-$154 million for the fourth quarter of 2007.

The Company is changing its guidance on annual diluted earnings per share for 2007 to a range of $2.05 to $2.15, reflecting the near term dilutive impact of the ITtoolbox acquisition and some additional IT consulting expenses related to the build-out of our new office facility in Rosslyn, Virginia. Included in this amount is approximately $0.40 of share-based compensation expense. For the balance of 2007, the Company expects diluted earnings per share of $0.48 to $0.55 for the third quarter and $0.59-$0.64 for the fourth quarter.

For 2007, the Company expects other income of approximately $16.5 to $17.5 million, an effective income tax rate of approximately 38.5% and diluted weighted shares outstanding of approximately 37.25-37.75 million.

The diluted earnings per share, interest income and weighted shares outstanding guidance includes only share repurchases made as of June 30, 2007.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are hereby cautioned that these statements may be affected by the important factors, among others, set forth below and in CEB's filings with the U.S. Securities and Exchange Commission, and consequently, actual operations and results may differ materially from the results discussed in the forward-looking statements. Factors that could cause actual results to differ materially from those indicated by forward-looking statements include, among others, our dependence on renewals of our membership-based services, difficulties we may experience in anticipating market trends, our need to attract and retain a significant number of highly skilled employees, fluctuations in operating results, our potential inability to protect our intellectual property rights, our potential exposure to loss of revenue resulting from our unconditional service guarantee, various factors that could affect our estimated income tax rate or our ability to use our existing deferred tax assets, changes in estimates or assumptions under FAS No. 123(R), whether the Washington, D.C. Office of Tax and Revenue withdraws our QHTC status and possible volatility of our stock price. These and other factors are discussed more fully in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of CEB's filings with the U.S. Securities and Exchange Commission, including, but not limited to, its 2006 Annual Report on Form 10-K. The forward-looking statements in this press release are made as of July 24, 2007, and we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

The Corporate Executive Board Company is a leading provider of best practices research and analysis focusing on corporate strategy, operations and general management issues. CEB provides its integrated set of services currently to more than 3,700 of the world's largest and most prestigious corporations, including over 80% of the Fortune 500. These services are provided primarily on an annual subscription basis and include best practices research studies, executive education seminars, customized research briefs and Web-based access to a library of over 275,000 corporate best practices.


                        Financial Highlights
                (In thousands, except per share data)
                             (Unaudited)


                                         Selected Three Months Ended
                                          Growth       June 30,
                                                  -------------------
                                          Rates     2007      2006
                                         -------- --------- ---------
Financial Highlights
  (GAAP, as reported):
Revenues                                   16.2 % $ 129,697 $ 111,662
Net income                                 (2.5)% $  17,323 $  17,763
Basic earnings per share                    6.8 % $    0.47 $    0.44
Diluted earnings per share                  7.0 % $    0.46 $    0.43
Weighted average shares outstanding:
    Basic                                            37,051    40,394
    Diluted                                          37,517    41,233

                                         Selected  Six Months Ended
                                          Growth       June 30,
                                                  -------------------
                                          Rates     2007      2006
                                         -------- --------- ---------
Financial Highlights
  (GAAP, as reported):
Revenues                                   17.3 % $ 254,222 $ 216,731
Net income                                  5.2 % $  36,693 $  34,882
Basic earnings per share                   11.5 % $    0.97 $    0.87
Diluted earnings per share                 12.9 % $    0.96 $    0.85
Weighted average shares outstanding:
    Basic                                            37,732    40,026
    Diluted                                          38,311    41,241

                THE CORPORATE EXECUTIVE BOARD COMPANY
          Operating Statistic and Statements of Operations
                (In thousands, except per share data)
                             (Unaudited)


                                         Selected Three Months Ended
                                          Growth       June 30,
                                                  -------------------
                                          Rates     2007      2006
                                         -------- --------- ---------

Operating Statistic

Contract Value (1) (at period end)         18.3 % $504,832  $426,698

Financial Highlights
Revenues                                   16.2 % $129,697  $111,662
Cost of services                                    47,264    39,059
                                                  --------- ---------
    Gross profit                                    82,433    72,603

Member relations and marketing                      37,482    31,925
General and administrative                          18,908    15,498
Depreciation and amortization                        3,165     2,425
                                                  --------- ---------
    Income from operations                  0.5 %   22,878    22,755

Other income, net                                    5,289     6,128
                                                  --------- ---------

Income before provision for income taxes            28,167    28,883
Provision for income taxes                          10,844    11,120
                                                  --------- ---------
    Net income                             (2.5)% $ 17,323  $ 17,763
                                                  ========= =========

Basic earnings per share                    6.8 % $   0.47  $   0.44
Diluted earnings per share                  7.0 % $   0.46  $   0.43

Weighted average shares outstanding
    Basic                                           37,051    40,394
    Diluted                                         37,517    41,233

Percentages of Revenues
Gross profit                                          63.6%     65.0%
Member relations and marketing                        28.9%     28.6%
General and administrative                            14.6%     13.9%
Depreciation and amortization                          2.4%      2.2%
Income from operations                                17.6%     20.4%

                                         Selected  Six Months Ended
                                          Growth       June 30,
                                                  -------------------
                                          Rates     2007      2006
                                         -------- --------- ---------

Operating Statistic

Contract Value (1) (at period end)

Financial Highlights
Revenues                                   17.3 % $254,222  $216,731
Cost of services                                    91,940    76,519
                                                  --------- ---------
    Gross profit                                   162,282   140,212

Member relations and marketing                      71,728    60,775
General and administrative                          36,025    30,525
Depreciation and amortization                        6,071     4,422
                                                  --------- ---------
    Income from operations                  8.9 %   48,458    44,490

Other income, net                                   11,204    12,228
                                                  --------- ---------

Income before provision for income taxes            59,662    56,718
Provision for income taxes                          22,969    21,836
                                                  --------- ---------
    Net income                              5.2 % $ 36,693  $ 34,882
                                                  ========= =========

Basic earnings per share                   11.5 % $   0.97  $   0.87
Diluted earnings per share                 12.9 % $   0.96  $   0.85

Weighted average shares outstanding
    Basic                                           37,732    40,026
    Diluted                                         38,311    41,241

Percentages of Revenues
Gross profit                                          63.8%     64.7%
Member relations and marketing                        28.2%     28.0%
General and administrative                            14.2%     14.1%
Depreciation and amortization                          2.4%      2.0%
Income from operations                                19.1%     20.5%


---------------------------------------------------------------------

(1) We define "Contract Value" as of the quarter-end as the aggregate
 annualized revenue attributed to all agreements in effect on such
 date, without regard to the remaining duration of any such
 agreement.
(2) The following amounts relating to share-based compensation are
 included in the Statements of Operations above for the three months
 ended June 30, 2007 and 2006, respectively: Cost of services, $2,587
 and $3,242, Member relations and marketing, $1,194 and $1,426 and
 General and administrative, $1,738 and $1,896. The following amounts
 relating to share-based compensation are included in the Statements
 of Operations above for the six months ended June 30, 2007 and 2006,
 respectively: Cost of services, $5,863 and $6,328, Member relations
 and marketing, $2,524 and $2,933 and General and administrative,
 $3,710 and $3,838.

                THE CORPORATE EXECUTIVE BOARD COMPANY
                CONDENSED CONSOLIDATED BALANCE SHEETS
                            (In thousands)

                                               June 30,   December 31,
                                                 2007         2006
                                             ------------ ------------
                                             (Unaudited)
Assets

Current assets:
    Cash and cash equivalents                $     86,124 $    171,367
    Marketable securities                         118,329      119,534
    Membership fees receivable, net                89,033      153,107
    Deferred income taxes, net                     16,070       15,109
    Deferred incentive compensation                13,170       13,160
    Prepaid expenses and other current
     assets                                         9,729        9,881
                                             ------------ ------------
          Total current assets                    332,455      482,158

Deferred income taxes, net                         14,120       12,896
Marketable securities                              90,021      196,386
Goodwill and other intangibles                      7,499        7,826
Other non-current assets                           18,524        9,801
Property and equipment, net                        47,174       26,988
                                             ------------ ------------
          Total assets                       $    509,793 $    736,055
                                             ============ ============

Liabilities and stockholders' equity

Current liabilities:
    Accounts payable and accrued liabilities $     36,491 $     66,773
    Accrued incentive compensation                 20,505       25,062
    Deferred revenues                             295,276      308,671
                                             ------------ ------------
          Total current liabilities               352,272      400,506

Other liabilities                                  34,010       17,684
                                             ------------ ------------
          Total liabilities                       386,282      418,190

Total stockholders' equity                        123,511      317,865
                                             ------------ ------------
          Total liabilities and
           stockholders' equity              $    509,793 $    736,055
                                             ============ ============

                THE CORPORATE EXECUTIVE BOARD COMPANY
                CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (In thousands)
                             (Unaudited)

                                                   Six Months Ended
                                                       June 30,
                                                 ---------------------
                                                    2007       2006
                                                 ---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                     $  36,693  $  34,882
  Adjustments to reconcile net income to net
   cash flows provided by operating activities:
    Depreciation and amortization                    6,071      4,424
    Deferred income taxes, net                         709     21,960
    Share-based compensation                        12,102     13,099
    Excess tax benefits from share-based
     compensation arrangements                      (1,966)   (18,180)
    Amortization of marketable securities
     discounts, net                                   (657)      (932)
    Changes in operating assets and liabilities:
      Membership fees receivable, net               64,074     43,416
      Deferred incentive compensation                  (10)       460
      Prepaid expenses and other current assets        152     (4,791)
      Other non-current assets                      (8,724)    (6,206)
      Accounts payable and accrued liabilities     (34,130)   (11,595)
      Accrued incentive compensation                (4,557)    (7,980)
      Deferred revenues                            (13,395)    (6,966)
      Other liabilities                              3,449      3,257
                                                 ---------- ----------
        Net cash flows provided by operating
         activities                                 59,811     64,848
                                                 ---------- ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property and equipment, net          (9,183)    (8,116)
  Sales and maturities (purchases) of marketable
   securities, net                                 108,141   (194,787)
                                                 ---------- ----------
        Net cash flows provided by (used in)
         investing activities                       98,958   (202,903)
                                                 ---------- ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from the exercise of common stock
   options                                             529      2,630
  Proceeds from the issuance of common stock
   under the employee stock purchase plan            1,125        912
  Excess tax benefits from share-based
   compensation arrangements                         1,966     18,180
  Purchase of treasury shares                     (218,009)   (58,363)
  Payment of dividends                             (29,623)   (23,954)
  Reimbursement of common stock offering costs          --         70
  Payment of common stock offering costs                --        (70)
                                                 ---------- ----------
        Net cash flows used in financing
         activities                               (244,012)   (60,595)
                                                 ---------- ----------

NET DECREASE IN CASH AND CASH EQUIVALENTS          (85,243)  (198,650)
Cash and cash equivalents, beginning of period     171,367    424,276
                                                 ---------- ----------

Cash and cash equivalents, end of period         $  86,124  $ 225,626
                                                 ========== ==========

CONTACT: Corporate Executive Board Company
Timothy R. Yost, 202-777-5455
Chief Financial Officer
heroldl@executiveboard.com
www.executiveboard.com

SOURCE: Corporate Executive Board Company