|
--5% organic revenue growth rate overall, including 8% for subscription-based business
--Adjusted EBITDA of $121 million, up 21%, representing 31.4% of revenue for the quarter
--EPS of $0.66, up 6%, and Adjusted EPS of $0.99, up 14%, for the quarter
IHS Inc. (IHS), the leading global source of information and
analytics, today reported results for the third quarter ended August 31,
2012. Revenue for the third quarter of 2012 totaled $386 million, a 14
percent increase over third quarter 2011 revenue of $339 million. Net
income for the third quarter of 2012 was $44 million, or $0.66 per
diluted share, compared to third quarter 2011 net income of $41 million,
or $0.62 per diluted share.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization) totaled $121 million for the third quarter of 2012, up 21
percent from $100 million in the third quarter of 2011. Adjusted
earnings per diluted share were $0.99 for the third quarter of 2012, an
increase of 14 percent over the prior-year period. Adjusted EBITDA and
Adjusted earnings per share are non-GAAP (Generally Accepted Accounting
Principles) financial measures used by management to measure operating
performance. Please see the end of this release for more information
about these non-GAAP measures.
"Our growth remains well above economic growth rates in each of our end
markets, but below our expectations," said Jerre Stead, IHS chairman and
chief executive officer. "Although our subscription business remained
strong, growing at eight percent organically for the seventh consecutive
quarter, our non-subscription business experienced weakness as customers
put capital decisions on hold in these uncertain environments."
Added Stead: "We continue to move quickly to deploy new systems and
processes across every aspect of our business to capture scale
efficiencies and to enhance the effectiveness of our global sales force.
These important investments will enable us to provide future organic
growth, margin expansion and increasing free cash flow as we realize
related benefits over the next four quarters and into 2014."
Third Quarter 2012 Details
Revenue for the third quarter of 2012 totaled $386 million, a 14 percent
increase over third-quarter 2011 revenue of $339 million. The revenue
increase was driven by five percent organic growth and 11 percent
acquisitive growth, with a negative two percent foreign currency impact.
The subscription-based business grew eight percent organically and
represented 76 percent of total revenue.
Three Months Ended August 31, Absolute Organic Nine Months Ended August 31, Absolute Organic
----------------------------- -------------------------------
2012 2011 % change % change 2012 2011 % change % change
-------------- -------------- ---------- ---------- ---------------- -------------- ---------- ----------
Subscription revenue $ 294,516 $ 263,916 12 % 8 % $ 855,160 $ 747,907 14 % 8 %
Non-subscription revenue 91,093 74,802 22 % (5 )% 260,351 207,075 26 % (4 )%
------------- ------------- --------------- -------------
Total revenue $ 385,609 $ 338,718 14 % 5 % $ 1,115,511 $ 954,982 17 % 5 %
==== ======= ==== ======= ==== ========= ==== =======
The company continued to grow its business overall in all three of its
operating regions. The Americas segment increased its revenue during the
third quarter by $27 million, or 13 percent, to $232 million. The EMEA
segment grew its third quarter revenue by $13 million, or 13 percent, to
$109 million. The APAC segment’s revenue was up $8 million, or 21
percent, to $45 million.
Adjusted EBITDA for the third quarter of 2012 was $121 million, up $21
million, or 21 percent, over the prior-year period. Operating income
increased $5 million, or nine percent, to $56 million. Americas’
operating income increased $13 million, or 22 percent, to $70 million.
EMEA’s operating income was up $6 million, or 30 percent, to $25
million. APAC’s operating income decreased $1 million, or eight percent,
to $10 million.
"Although customers rely heavily on our information and insight in
uncertain economic environments, we are not immune to discretionary
decision-making in the face of uncertain markets that materially impact
business spending," said Scott Key, IHS president and chief operating
officer. "However, we remain confident in the fundamentals of our
business and our ability to achieve our long-term aspirations. We are
focused on executing to deliver our full potential in any economic
environment, ensuring IHS is delivering performance and value well above
market levels on a consistent basis."
Year-to-Date 2012
Revenue for the nine months ended August 31, 2012, increased $161
million, or 17 percent, to $1.12 billion. Organic revenue growth was
five percent overall and eight percent for the subscription-based
portion of the business. Acquisitions added 13 percent, with a negative
one percent foreign currency impact during the first nine months of
2012. The Americas segment grew its revenue during the nine months ended
August 31, 2012, by $90 million, or 15 percent, to $670 million. The
EMEA segment increased its year-to-date 2012 revenue by $46 million, or
17 percent, to $321 million. The APAC segment increased its revenue by
$25 million, or 25 percent, to $124 million during the first nine months
of 2012.
Adjusted EBITDA for year-to-date 2012 increased $64 million, or 23
percent, to $345 million. Operating income increased $6 million, or four
percent, year-over-year to $152 million. Americas’ operating income was
$190 million, up $29 million, or 18 percent, over the prior-year period.
EMEA grew its year-to-date 2012 operating income to $70 million, up $14
million, or 26 percent, over the same period of 2011. APAC’s operating
income was $29 million, an increase of $0.5 million, or two percent,
over last year.
Net income for the nine months ended August 31, 2012 decreased $1
million, or one percent, to $112 million, or $1.68 per diluted share.
Cash Flows
Excluding a $57 million pension funding contribution, IHS generated $303
million of cash flow from operations during the nine months ended
August 31, 2012, representing a 20 percent increase over last year’s
$253 million. On a trailing twelve-month basis, our conversion of
Adjusted EBITDA to adjusted free cash flow was 72 percent.
Balance Sheet
IHS ended the third quarter of 2012 with $298 million of cash and cash
equivalents and $1.01 billion of debt.
"We recently increased our credit facility by $500 million, moving from
$1.3 billion to $1.8 billion of total borrowing capacity," said Richard
Walker, IHS executive vice president and chief financial officer. "While
these actions did not increase our outstanding debt, we have increased
our current available borrowing capacity to $750 million to support
continued acquisitions and strategic investment."
Outlook (forward-looking statement)
For the year ending November 30, 2012, IHS is revising guidance and
expects:
--
All-in revenue in a range of $1.515 to $1.535 billion, including an
organic growth rate of approximately eight percent for the portion of
the business that is subscription-based
--
All-in Adjusted EBITDA in a range of $480 to $490 million
--
Adjusted EPS between $3.77 and $3.89
The above outlook assumes no further currency movements, acquisitions,
pension mark-to-market adjustments or unanticipated events.
See discussion of Adjusted EBITDA and non-GAAP financial measures at the
end of this release.
As previously announced, IHS will hold a conference call to discuss
third quarter 2012 results on September 20, 2012, at 8:00 a.m. EDT. The
conference call will be simultaneously webcast on the company’s website: www.ihs.com.
Use of Non-GAAP Financial Measures
Non-GAAP results are presented only as a supplement to the financial
statements based on U.S. generally accepted accounting principles
(GAAP). The non-GAAP financial information is provided to enhance the
reader’s understanding of our financial performance, but no non-GAAP
measure should be considered in isolation or as a substitute for
financial measures calculated in accordance with GAAP. Reconciliations
of the most directly comparable GAAP measures to non-GAAP measures, such
as Adjusted EBITDA and Adjusted earnings per diluted share, are provided
within the schedules attached to this release.
EBITDA is defined as net income plus or minus net interest plus income
taxes, depreciation and amortization. Adjusted EBITDA further excludes
(i) non-cash items (e.g., stock-based compensation expense and non-cash
pension and postretirement expense) and (ii) items that management does
not consider to be useful in assessing our operating performance (e.g.,
acquisition-related costs, restructuring charges, income or loss from
discontinued operations, pension settlement and mark-to-market
adjustments, and gain or loss on sale of assets). Adjusted earnings per
diluted share exclude similar items as Adjusted EBITDA. None of these
non-GAAP financial measures are recognized terms under GAAP and do not
purport to be an alternative to net income as an indicator of operating
performance or any other GAAP measure.
Management uses these non-GAAP measures in its operational and financial
decision-making, believing that it is useful to eliminate certain items
in order to focus on what it deems to be a more reliable indicator of
ongoing operating performance and our ability to generate cash flow from
operations. As a result, internal management reports used during monthly
operating reviews feature the Adjusted EBITDA and Adjusted earnings per
diluted share metrics. Management also believes that investors may find
non-GAAP financial measures useful for the same reasons, although
investors are cautioned that non-GAAP financial measures are not a
substitute for GAAP disclosures. EBITDA, Adjusted EBITDA, and Adjusted
earnings per diluted share are also used by many of our investors,
research analysts, investment bankers, and lenders to assess our
operating performance. For example, a measure similar to Adjusted EBITDA
is required by the lenders under our term loan and revolving credit
agreement.
Because not all companies use identical calculations, our presentation
of non-GAAP financial measures may not be comparable to other
similarly-titled measures of other companies. However, these measures
can still be useful in evaluating our performance against our peer
companies because management believes the measures provide users with
valuable insight into key components of GAAP financial disclosures. For
example, a company with greater GAAP net income may not be as appealing
to investors if its net income is more heavily comprised of gains on
asset sales. Likewise, eliminating the effects of interest income and
expense moderates the impact of a company’s capital structure on its
performance.
All of the items included in the reconciliation from net income to
Adjusted EBITDA are either (i) non-cash items (e.g., depreciation and
amortization, stock-based compensation, non-cash pension and
postretirement expense) or (ii) items that we do not consider to be
useful in assessing our operating performance (e.g., income taxes,
acquisition-related costs, restructuring charges, income or loss from
discontinued operations, and gain or loss on sale of assets). In the
case of the non-cash items, management believes that investors can
better assess our operating performance if the measures are presented
without such items because, unlike cash expenses, these adjustments do
not affect our ability to generate free cash flow or invest in our
business. For example, by eliminating depreciation and amortization from
EBITDA, users can compare operating performance without regard to
different accounting determinations such as useful life. In the case of
the other items, management believes that investors can better assess
operating performance if the measures are presented without these items
because their financial impact does not reflect ongoing operating
performance.
IHS Forward-Looking Statements:
This release may contain forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are statements that are not historical facts. Such statements
may include financial projections and estimates and their underlying
assumptions, statements regarding plans, objectives and expectations
with respect to future operations, products and services, and statements
regarding future performance. Forward-looking statements are generally
identified by the words "expect," "anticipate," "believe," "intend,"
"estimate," "plan" and similar expressions. Although IHS and its
management believe that the expectations reflected in such
forward-looking statements are reasonable, investors are cautioned that
forward-looking information and statements are subject to various risks
and uncertainties - many of which are difficult to predict and generally
beyond the control of IHS - that could cause actual results and
developments to differ materially from those expressed in, or implied or
projected by, the forward-looking information and statements. These
risks and uncertainties include those discussed or identified by IHS
from time to time in its public filings. Other than as required by
applicable law, IHS does not undertake any obligation to update or
revise any forward-looking information or statements. Please consult our
public filings at www.sec.gov
or www.ihs.com.
About IHS Inc. (www.ihs.com)
IHS (IHS) is the leading source of information, insight and
analytics in critical areas that shape today’s business landscape.
Businesses and governments in more than 165 countries around the globe
rely on the comprehensive content, expert independent analysis and
flexible delivery methods of IHS to make high-impact decisions and
develop strategies with speed and confidence. IHS has been in business
since 1959, incorporated in the State of Delaware in 1994, and became a
publicly traded company on the New York Stock Exchange in 2005.
Headquartered in Englewood, Colorado, USA, IHS employs more than 6,000
people in more than 30 countries around the world.
IHS is a registered trademark of IHS Inc. All other company and
product names may be trademarks of their respective owners.
(C) 2012 IHS Inc. All rights reserved.
IHS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per-share amounts)
As of As of
August 31, 2012 November 30, 2011
------------------- --------------------
(Unaudited) (Audited)
Assets
Current assets:
Cash and cash equivalents $ 298,433 $ 234,685
Accounts receivable, net 289,548 326,009
Income tax receivable 19,932 25,194
Deferred subscription costs 45,229 43,136
Deferred income taxes 53,026 45,253
Other 27,924 23,801
----------------- ------------------
Total current assets 734,092 698,078
----------------- ------------------
Non-current assets:
Property and equipment, net 157,995 128,418
Intangible assets, net 578,597 514,949
Goodwill, net 1,959,663 1,722,312
Prepaid pension asset 9,042 --
Other 8,783 9,280
----------------- ------------------
Total non-current assets 2,714,080 2,374,959
----------------- ------------------
Total assets $ 3,448,172 $ 3,073,037
====== ========= ======= =========
Liabilities and stockholders’ equity
Current liabilities:
Short-term debt $ 170,208 $ 144,563
Accounts payable 36,795 32,428
Accrued compensation 45,140 57,516
Accrued royalties 19,101 26,178
Other accrued expenses 67,138 69,000
Deferred revenue 516,188 487,172
----------------- ------------------
Total current liabilities 854,570 816,857
Long-term debt 837,503 658,911
Accrued pension liability 7,672 59,460
Accrued postretirement benefits 9,006 9,200
Deferred income taxes 148,234 123,895
Other liabilities 22,548 19,985
Commitments and contingencies
Stockholders’ equity:
Class A common stock, $0.01 par value per share, 160,000,000 shares 676 675
authorized, 67,621,367 and 67,527,344 shares issued, and 65,937,011
and 65,121,884 shares outstanding at August 31, 2012 and November
30, 2011, respectively
Additional paid-in capital 671,378 636,440
Treasury stock, at cost: 1,684,356 and 2,405,460 shares at August (101,711 ) (133,803 )
31, 2012 and November 30, 2011, respectively
Retained earnings 1,042,367 930,619
Accumulated other comprehensive loss (44,071 ) (49,202 )
------------------ -------------------
Total stockholders’ equity 1,568,639 1,384,729
----------------- ------------------
Total liabilities and stockholders’ equity $ 3,448,172 $ 3,073,037
====== ========= ======= =========
IHS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per-share amounts)
(Unaudited)
Three Months Ended August 31, Nine Months Ended August 31,
------------------------------------------------------ --------------------------------------------
2012 2011 2012 2011
------------------------- ---------------------------- ------------------------- ------------------
Revenue:
Products $ 339,946 $ 295,328 $ 964,444 $ 832,006
Services 45,663 43,390 151,067 122,976
-------------------- ----------------------- -------------------- -------------
Total revenue 385,609 338,718 1,115,511 954,982
Operating expenses:
Cost of revenue:
Products 132,577 120,638 392,931 343,437
Services 21,169 23,376 72,676 68,448
-------------------- ----------------------- -------------------- -------------
153,746 144,014 465,607 411,885
Total cost of revenue (includes stock-based compensation expense
of $1,488; $854; $4,467 and $2,638 for the three and nine months
ended August 31, 2012 and 2011, respectively)
Selling, general and administrative (includes stock-based 138,519 117,352 390,540 324,792
compensation expense of $29,050; $21,570; $86,465 and $61,175 for
the three and nine months ended August 31, 2012 and 2011,
respectively)
Depreciation and amortization 31,390 23,496 86,683 62,411
Restructuring charges 967 -- 12,080 702
Acquisition-related costs 2,104 1,540 3,472 6,089
Net periodic pension and postretirement expense 2,001 835 5,998 2,383
Other expense (income), net 622 (197 ) (680 ) 416
-------------------- --------------------------- ------------------------ -------------
Total operating expenses 329,349 287,040 963,700 808,678
-------------------- ----------------------- -------------------- -------------
Operating income 56,260 51,678 151,811 146,304
Interest income 255 163 674 654
Interest expense (5,057 ) (2,967 ) (14,837 ) (6,774 )
------------------------ --------------------------- ------------------------ -----------------
Non-operating expense, net (4,802 ) (2,804 ) (14,163 ) (6,120 )
------------------------ --------------------------- ------------------------ -----------------
Income from continuing operations before income taxes 51,458 48,874 137,648 140,184
Provision for income taxes (7,384 ) (8,183 ) (25,908 ) (27,951 )
------------------------ --------------------------- ------------------------ -----------------
Income from continuing operations 44,074 40,691 111,740 112,233
Income from discontinued operations, net 8 118 8 454
-------------------- ----------------------- -------------------- -------------
Net income $ 44,082 $ 40,809 $ 111,748 $ 112,687
==== ============== ======= ============== ==== ============== ==== =======
Basic earnings per share:
Income from continuing operations $ 0.67 $ 0.63 $ 1.70 $ 1.73
Income from discontinued operations, net $ -- $ -- $ -- $ 0.01
---- -------------- ------- -------------- ---- -------------- ---- -------
Net income $ 0.67 $ 0.63 $ 1.70 $ 1.74
==== ============== ======= ============== ==== ============== ==== =======
Weighted average shares used in computing basic earnings per share 65,992 65,022 65,795 64,864
==================== ======================= ==================== =============
Diluted earnings per share:
Income from continuing operations $ 0.66 $ 0.62 $ 1.68 $ 1.71
Income from discontinued operations, net $ -- $ -- $ -- $ 0.01
---- -------------- ------- -------------- ---- -------------- ---- -------
Net income $ 0.66 $ 0.62 $ 1.68 $ 1.72
==== ============== ======= ============== ==== ============== ==== =======
Weighted average shares used in computing diluted earnings per 66,808 65,677 66,602 65,555
share
================== ==== ===================== ==== ================== ==== =========== ====
IHS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended August 31,
-----------------------------------
2012 2011
---------------- ------------------
Operating activities:
Net income $ 111,748 $ 112,687
Reconciliation of net income to net cash provided by operating
activities:
Depreciation and amortization 86,683 62,411
Stock-based compensation expense 90,932 63,813
Excess tax benefit from stock-based compensation (13,181 ) (9,182 )
Net periodic pension and postretirement expense 5,998 2,110
Pension and postretirement contributions (67,023 ) --
Deferred income taxes (7,082 ) 11,120
Change in assets and liabilities:
Accounts receivable, net 46,177 35,737
Other current assets (4,435 ) (3,471 )
Accounts payable 7,806 (7,838 )
Accrued expenses (30,678 ) (26,439 )
Income tax payable 16,742 (13,874 )
Deferred revenue 2,505 25,832
Other liabilities 64 336
-------------- ----------------
Net cash provided by operating activities 246,256 253,242
-------------- ----------------
Investing activities:
Capital expenditures on property and equipment (49,699 ) (45,373 )
Acquisitions of businesses, net of cash acquired (306,268 ) (699,992 )
Intangible assets acquired (3,700 ) (2,985 )
Change in other assets 1,658 (1,203 )
Settlements of forward contracts (3,058 ) (2,849 )
--------------- -----------------
Net cash used in investing activities (361,067 ) (752,402 )
--------------- -----------------
Financing activities:
Proceeds from borrowings 680,001 870,000
Repayment of borrowings (476,399 ) (353,368 )
Payment of debt issuance costs (740 ) (6,326 )
Excess tax benefit from stock-based compensation 13,181 9,182
Proceeds from the exercise of employee stock options 2,938 2,144
Repurchases of common stock (35,358 ) (28,032 )
--------------- -----------------
Net cash provided by financing activities 183,623 493,600
-------------- ----------------
Foreign exchange impact on cash balance (5,064 ) 7,697
--------------- ----------------
Net increase in cash and cash equivalents 63,748 2,137
Cash and cash equivalents at the beginning of the period 234,685 200,735
-------------- ----------------
Cash and cash equivalents at the end of the period $ 298,433 $ 202,872
===== ======= ======= =======
IHS INC.
SUPPLEMENTAL REVENUE DISCLOSURE
(In thousands)
(Unaudited)
Three Months Ended August 31, Absolute Organic Nine Months Ended August 31, Absolute Organic
----------------------------- -------------------------------
2012 2011 % change % change 2012 2011 % change % change
-------------- -------------- ---------- ---------- ---------------- -------------- ---------- ----------
Revenue by segment:
Americas revenue $ 232,369 $ 205,728 13 % 2 % $ 669,757 $ 580,189 15 % 4 %
EMEA revenue 108,505 95,946 13 % 8 % 321,438 275,446 17 % 7 %
APAC revenue 44,735 37,044 21 % 11 % 124,316 99,347 25 % 9 %
------------- ------------- --------------- -------------
Total revenue $ 385,609 $ 338,718 14 % 5 % $ 1,115,511 $ 954,982 17 % 5 %
==== ======= ==== ======= ==== ========= ==== =======
Revenue by transaction type:
Subscription revenue $ 294,516 $ 263,916 12 % 8 % $ 855,160 $ 747,907 14 % 8 %
Non-subscription revenue 91,093 74,802 22 % (5 )% 260,351 207,075 26 % (4 )%
------------- ------------- --------------- -------------
Total revenue $ 385,609 $ 338,718 14 % 5 % $ 1,115,511 $ 954,982 17 % 5 %
==== ======= ==== ======= ==== ========= ==== =======
Revenue by information domain:
Energy revenue $ 180,072 $ 142,608 $ 520,958 $ 403,703
Product Lifecycle (PLC) revenue 129,475 114,140 364,295 321,124
Security revenue 30,280 32,204 87,524 88,570
Environment revenue 24,738 25,235 71,878 68,778
Macroeconomic Forecasting and Intersection revenue 21,044 24,531 70,856 72,807
------------- ------------- --------------- -------------
Total revenue $ 385,609 $ 338,718 $ 1,115,511 $ 954,982
==== ======= ==== ======= ==== ========= ==== =======
IHS INC.
RECONCILIATION OF CONSOLIDATED NON-GAAP FINANCIAL MEASUREMENTS
TO
MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(In thousands, except for per-share amounts)
(Unaudited)
Three Months Ended August 31, Nine Months Ended August 31,
------------------------------------------- -------------------------------------------
2012 2011 2012 2011
--------------------- --------------------- --------------------- ---------------------
Net income $ 44,082 $ 40,809 $ 111,748 $ 112,687
Interest income (255 ) (163 ) (674 ) (654 )
Interest expense 5,057 2,967 14,837 6,774
Provision for income taxes 7,384 8,183 25,908 27,951
Depreciation and amortization 31,390 23,496 86,683 62,411
---------------- ---------------- ---------------- ----------------
EBITDA $ 87,658 $ 75,292 $ 238,502 $ 209,169
Stock-based compensation expense 30,538 22,424 90,932 63,813
Restructuring charges 967 -- 12,080 702
Acquisition-related costs 2,104 1,540 3,472 6,089
Non-cash net periodic pension and postretirement expense -- 703 -- 2,110
Income from discontinued operations, net (8 ) (118 ) (8 ) (454 )
-------------------- -------------------- -------------------- --------------------
Adjusted EBITDA $ 121,259 $ 99,841 $ 344,978 $ 281,429
======= ======= ======= ======= ======= ======= ======= =======
Three Months Ended August 31, Nine Months Ended August 31,
------------------------------------------- -------------------------------------------
2012 2011 2012 2011
--------------------- --------------------- --------------------- ---------------------
Earnings per diluted share $ 0.66 $ 0.62 $ 1.68 $ 1.72
Stock-based compensation expense 0.30 0.22 0.88 0.63
Restructuring charges 0.01 -- 0.12 0.01
Acquisition-related costs 0.02 0.02 0.04 0.08
Non-cash net periodic pension and postretirement expense -- 0.01 -- 0.02
Income from discontinued operations, net -- -- -- (0.01 )
---------------- ---------------- ---------------- --------------------
Adjusted earnings per diluted share $ 0.99 $ 0.87 $ 2.73 $ 2.45
======= ======= ======= ======= ======= ======= ======= =======
Note: Amounts may not sum due to rounding
Three Months Ended August 31, Nine Months Ended August 31,
------------------------------------------- -------------------------------------------
2012 2011 2012 2011
--------------------- --------------------- --------------------- ---------------------
Net cash provided by operating activities 68,082 52,261 246,256 253,242
Capital expenditures on property and equipment (18,025 ) (12,842 ) (49,699 ) (45,373 )
-------------------- -------------------- -------------------- --------------------
Free cash flow $ 50,057 $ 39,419 $ 196,557 $ 207,869
Pension deficit funding -- -- 57,000 --
---------------- ---------------- ---------------- ----------------
Adjusted free cash flow $ 50,057 $ 39,419 $ 253,557 $ 207,869
======= ======= ======= ======= ======= ======= ======= =======
IHS INC.
RECONCILIATION OF SEGMENT NON-GAAP FINANCIAL MEASUREMENTS TO
MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(In thousands)
(Unaudited)
Three Months Ended August 31, 2012
------------------------------------------------------------------------------------------
Americas EMEA APAC Shared Services Total
----------------- ----------------- ----------------- ------------------- ----------------
Operating income $ 70,086 $ 24,590 $ 10,001 $ (48,417 ) $ 56,260
Adjustments:
Stock-based compensation expense -- -- -- 30,538 30,538
Depreciation and amortization 23,281 5,988 390 1,731 31,390
Restructuring charges 520 436 11 -- 967
Acquisition-related costs 2,002 102 -- -- 2,104
---------------- ---------------- ---------------- ----------------- ----------------
Adjusted EBITDA $ 95,889 $ 31,116 $ 10,402 $ (16,148 ) $ 121,259
======= ======= ======= ======= ======= ======= ======= ======== = ======= =======
Three Months Ended August 31, 2011
------------------------------------------------------------------------------------------
Americas EMEA APAC Shared Services Total
----------------- ----------------- ----------------- ------------------- ----------------
Operating income $ 57,484 $ 18,858 $ 10,911 $ (35,575 ) $ 51,678
Adjustments:
Stock-based compensation expense -- -- -- 22,424 22,424
Depreciation and amortization 18,082 4,772 48 594 23,496
Restructuring charges -- -- -- -- --
Acquisition-related costs 1,540 -- -- -- 1,540
Non-cash net periodic pension and postretirement expense -- -- -- 703 703
---------------- ---------------- ---------------- ----------------- ----------------
Adjusted EBITDA $ 77,106 $ 23,630 $ 10,959 $ (11,854 ) $ 99,841
======= ======= ======= ======= ======= ======= ======= ======== = ======= =======
Nine Months Ended August 31, 2012
------------------------------------------------------------------------------------------
Americas EMEA APAC Shared Services Total
----------------- ----------------- ----------------- ------------------- ----------------
Operating income $ 190,071 $ 69,553 $ 29,489 $ (137,302 ) $ 151,811
Adjustments:
Stock-based compensation expense -- -- -- 90,932 90,932
Depreciation and amortization 65,039 16,169 711 4,764 86,683
Restructuring charges 9,897 1,941 242 -- 12,080
Acquisition-related costs 3,254 218 -- -- 3,472
---------------- ---------------- ---------------- ----------------- ----------------
Adjusted EBITDA $ 268,261 $ 87,881 $ 30,442 $ (41,606 ) $ 344,978
======= ======= ======= ======= ======= ======= ======= ======== = ======= =======
Nine Months Ended August 31, 2011
------------------------------------------------------------------------------------------
Americas EMEA APAC Shared Services Total
----------------- ----------------- ----------------- ------------------- ----------------
Operating income $ 161,459 $ 55,104 $ 29,037 $ (99,296 ) $ 146,304
Adjustments:
Stock-based compensation expense -- -- -- 63,813 63,813
Depreciation and amortization 47,510 13,062 134 1,705 62,411
Restructuring charges 338 364 -- -- 702
Acquisition-related costs 5,687 402 -- -- 6,089
Non-cash net periodic pension and post-retirement expense -- -- -- 2,110 2,110
---------------- ---------------- ---------------- ----------------- ----------------
Adjusted EBITDA $ 214,994 $ 68,932 $ 29,171 $ (31,668 ) $ 281,429
======= ======= ======= ======= ======= ======= ======= ======== = ======= =======
IHS INC.
SUPPLEMENTAL INFORMATION
(In thousands)
(Unaudited)
Three Months Ended August 31, 2012 Three Months Ended August 31, 2011
--------------------------------------------------- ---------------------------------------------------
Pre-tax After tax Pre-tax After tax
------------------------- ------------------------- ------------------------- -------------------------
Stock-based compensation expense $ 30,538 $ 19,741 $ 22,424 $ 14,582
Restructuring charges $ 967 $ 945 $ -- $ --
Acquisition-related costs $ 2,104 $ 1,434 $ 1,540 $ 1,540
Non-cash net periodic pension and postretirement expense $ -- $ -- $ 703 $ 435
Income from discontinued operations, net $ (18 ) $ (8 ) $ (185 ) $ (118 )
Nine Months Ended August 31, 2012 Nine Months Ended August 31, 2011
--------------------------------------------------- ---------------------------------------------------
Pre-tax After tax Pre-tax After tax
------------------------- ------------------------- ------------------------- -------------------------
Stock-based compensation expense $ 90,932 $ 58,781 $ 63,813 $ 41,369
Restructuring charges $ 12,080 $ 8,201 $ 702 $ 452
Acquisition-related costs $ 3,472 $ 2,802 $ 6,089 $ 5,017
Non-cash net periodic pension and postretirement expense $ -- $ -- $ 2,110 $ 1,308
Income from discontinued operations, net $ (18 ) $ (8 ) $ (747 ) $ (454 )
SOURCE: IHS Inc.
IHS Inc.
News Media:
David E. Pendery, +1-303-397-2468
david.pendery@ihs.com
or
Investor Relations:
Andy Schulz, +1-303-397-2969
andy.schulz@ihs.com
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