Attached files

file filename
8-K - 8-K - IHS Inc.a12-10778_48k.htm

Exhibit 99.1

 

GRAPHIC

News Release

 

FOR IMMEDIATE RELEASE

 

News Media Contact:

Investor Relations Contact:

David E. Pendery

Andy Schulz

IHS Inc.

IHS Inc.

+1 303 397 2468

+1 303 397 2969

david.pendery@ihs.com

andy.schulz@ihs.com

 

IHS Inc. Reports Second Quarter 2012 Results

 

·                  Quarterly revenue of $387 million, up 20%

·                  7% organic revenue growth rate overall, including 8% for subscription-based business

·                  Adjusted EBITDA of $120 million, or 31.0% of revenue for the quarter

·                  EPS of $0.66 and Adjusted EPS of $0.97 for the quarter

 

ENGLEWOOD, Colo. (June 18, 2012) - IHS Inc. (NYSE: IHS), the leading global source of information and analytics, today reported results for the second quarter ended May 31, 2012.  Revenue for the second quarter of 2012 totaled $387 million, a 20 percent increase over second quarter 2011 revenue of $323 million.  Net income for the second quarter of 2012 was $44 million, or $0.66 per diluted share, compared to second quarter 2011 net income of $40 million, or $0.61 per diluted share.

 

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) totaled $120 million for the second quarter of 2012, up 26 percent from $95 million in the second quarter of 2011. Adjusted earnings per diluted share were $0.97 for the second quarter of 2012, an increase of 17 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.

 

“Strong second-quarter results were highlighted by solid top-line growth, meaningful margin expansion, robust free cash flow generation, new product introduction and continued investment in the future of our company,” said Jerre Stead, IHS chairman and chief executive officer. “We finished the first half of the year with momentum and expect to deliver an even better second half of 2012.”

 

1



 

Second Quarter 2012 Details

 

Revenue for the second quarter of 2012 totaled $387 million, a 20 percent increase over second-quarter 2011 revenue of $323 million.  The revenue increase was driven by seven percent organic growth and 14 percent acquisitive growth, with foreign currency movements decreasing one percent.  The subscription-based business grew eight percent organically and represented 74 percent of total revenue.

 

 

 

Three Months Ended May 31,

 

Absolute

 

Organic

 

Six Months Ended May 31,

 

Absolute

 

Organic

 

 

 

2012

 

2011

 

% change

 

% change

 

2012

 

2011

 

% change

 

% change

 

Subscription revenue

 

$

287,254

 

$

250,372

 

15

%

8

%

$

560,644

 

$

483,991

 

16

%

8

%

Non-subscription revenue

 

99,905

 

72,749

 

37

%

4

%

169,258

 

132,273

 

28

%

(3

)%

Total revenue

 

$

387,159

 

$

323,121

 

20

%

7

%

$

729,902

 

$

616,264

 

18

%

6

%

 

The company continued to grow its business overall in all three of its operating regions.  The Americas segment increased its revenue during the second quarter by $36 million, or 18 percent, to $230 million.  The EMEA segment grew its second quarter revenue by $18 million, or 19 percent, to $114 million.  The APAC segment’s revenue was up $10 million, or 31 percent, to $43 million.

 

Adjusted EBITDA for the second quarter of 2012 was $120 million, up $25 million, or 26 percent, over the prior-year period.  Operating income increased $8 million, or 15 percent, to $60 million.  Americas’ operating income increased $14 million, or 25 percent, to $69 million.  EMEA’s operating income was up $4 million, or 22 percent, to $24 million.  APAC’s operating income grew $2 million, or 17 percent, to $11 million.

 

Year-to-Date 2012

 

Revenue for the six months ended May 31, 2012, increased $114 million, or 18 percent, to $730 million.  Organic revenue growth was six percent overall and eight percent for the subscription-based portion of the business.  Acquisitions added 14 percent, and foreign currency movements decreased revenue by one percent during the first six months of 2012.  The Americas segment grew its revenue during the six months ended May 31, 2012, by $63 million, or 17 percent, to $437 million.  The EMEA segment increased its year-to-date 2012 revenue by $33 million, or 19 percent, to $213 million.  The APAC segment increased its revenue by $17 million, or 28 percent, to $80 million during the first six months of 2012.

 

Adjusted EBITDA for year-to-date 2012 increased $42 million, or 23 percent, to $224 million.  Operating income increased $1 million, or one percent, year-over-year to $96 million.  Americas’ operating income was $120 million, up $16 million, or 15 percent, over the prior-year period.  EMEA grew its year-to-date 2012 operating income to $45 million, up $9 million, or 24 percent, over the same period of 2011.  APAC’s operating income was $19 million, an increase of $1 million, or 8 percent, over last year.

 

Net income for the six months ended May 31, 2012 decreased $4 million, or six percent, to $68 million, or $1.02 per diluted share.

 

Cash Flows

 

Excluding a $57 million pension funding contribution, IHS generated $235 million of cash flow from operations during the six months ended May 31, 2012, representing a 17 percent increase over last year’s $201 million.

 

Balance Sheet

 

IHS ended the second quarter of 2012 with $268 million of cash and cash equivalents and $844 million of debt.

 

2



 

Outlook (forward-looking statement)

 

For the year ending November 30, 2012, IHS is raising guidance and expects:

 

·                  All-in revenue in a range of $1.53 to $1.58 billion, including an organic growth rate expected to be between 7-10 percent

·                  All-in Adjusted EBITDA in a range of $495 to $505 million

·                  Adjusted EPS between $3.88 and $4.01

 

We also expect that depreciation and amortization expense will be approximately $119 million for the year ending November 30, 2012, which reflects the impact of recently completed acquisitions.

 

The above outlook assumes no further currency movements, acquisitions (and does not include the recently announced agreement to acquire GlobalSpec, Inc.), pension mark-to-market adjustments or unanticipated events.

 

“Importantly, our guidance increase is net of the expected full-year negative impact of $11 million to revenue with minimal impact to Adjusted EBITDA stemming from adverse currency movements,” said Richard Walker, IHS executive vice president and chief financial officer.

 

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 second quarter 2012 results on June 18, 2012, at 5:00 p.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, 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

 

3



 

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 (NYSE: 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.

© 2012 IHS Inc. All rights reserved.

 

###

 

4



 

IHS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per-share amounts)

 

 

 

As of

 

As of

 

 

 

May 31, 2012

 

November 30, 2011

 

 

 

(Unaudited)

 

(Audited)

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

268,215

 

$

234,685

 

Accounts receivable, net

 

289,055

 

326,009

 

Income tax receivable

 

22,264

 

25,194

 

Deferred subscription costs

 

51,363

 

43,136

 

Deferred income taxes

 

45,846

 

45,253

 

Other

 

31,195

 

23,801

 

Total current assets

 

707,938

 

698,078

 

Non-current assets:

 

 

 

 

 

Property and equipment, net

 

146,236

 

128,418

 

Intangible assets, net

 

524,332

 

514,949

 

Goodwill, net

 

1,801,317

 

1,722,312

 

Prepaid pension asset

 

9,814

 

 

Other

 

8,982

 

9,280

 

Total non-current assets

 

2,490,681

 

2,374,959

 

Total assets

 

$

3,198,619

 

$

3,073,037

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Short-term debt

 

$

170,196

 

$

144,563

 

Accounts payable

 

38,648

 

32,428

 

Accrued compensation

 

46,323

 

57,516

 

Accrued royalties

 

24,149

 

26,178

 

Other accrued expenses

 

58,762

 

69,000

 

Deferred revenue

 

544,390

 

487,172

 

Total current liabilities

 

882,468

 

816,857

 

Long-term debt

 

673,865

 

658,911

 

Accrued pension liability

 

7,674

 

59,460

 

Accrued postretirement benefits

 

9,092

 

9,200

 

Deferred income taxes

 

126,958

 

123,895

 

Other liabilities

 

19,014

 

19,985

 

Commitments and contingencies

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Class A common stock, $0.01 par value per share, 160,000,000 shares authorized, 67,621,367 and 67,527,344 shares issued, and 65,756,827 and 65,121,884 shares outstanding at May 31, 2012 and November 30, 2011, respectively

 

676

 

675

 

Additional paid-in capital

 

650,915

 

636,440

 

Treasury stock, at cost: 1,864,540 and 2,405,460 shares at May 31, 2012 and November 30, 2011, respectively

 

(111,091

)

(133,803

)

Retained earnings

 

998,285

 

930,619

 

Accumulated other comprehensive loss

 

(59,237

)

(49,202

)

Total stockholders’ equity

 

1,479,548

 

1,384,729

 

Total liabilities and stockholders’ equity

 

$

3,198,619

 

$

3,073,037

 

 

5



 

IHS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for per-share amounts)

(Unaudited)

 

 

 

Three Months Ended May 31,

 

Six Months Ended May 31,

 

 

 

2012

 

2011

 

2012

 

2011

 

Revenue:

 

 

 

 

 

 

 

 

 

Products

 

$

326,517

 

$

276,082

 

$

624,498

 

$

536,678

 

Services

 

60,642

 

47,039

 

105,404

 

79,586

 

Total revenue

 

387,159

 

323,121

 

729,902

 

616,264

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

Products

 

135,532

 

114,759

 

260,354

 

222,799

 

Services

 

29,739

 

26,446

 

51,507

 

45,072

 

Total cost of revenue (includes stock-based compensation expense of $1,662; $930; $2,979 and $1,784 for the three and six months ended May 31, 2012 and 2011, respectively)

 

165,271

 

141,205

 

311,861

 

267,871

 

Selling, general and administrative (includes stock-based compensation expense of $24,812; $18,361; $57,415 and $39,605 for the three and six months ended May 31, 2012 and 2011, respectively)

 

126,845

 

105,668

 

252,021

 

207,440

 

Depreciation and amortization

 

28,992

 

20,714

 

55,293

 

38,915

 

Restructuring charges

 

3,628

 

702

 

11,113

 

702

 

Acquisition-related costs

 

501

 

1,243

 

1,368

 

4,549

 

Net periodic pension and postretirement expense

 

1,997

 

775

 

3,997

 

1,548

 

Other expense (income), net

 

(566

)

108

 

(1,302

)

613

 

Total operating expenses

 

326,668

 

270,415

 

634,351

 

521,638

 

Operating income

 

60,491

 

52,706

 

95,551

 

94,626

 

Interest income

 

247

 

306

 

419

 

491

 

Interest expense

 

(4,886

)

(2,145

)

(9,780

)

(3,807

)

Non-operating expense, net

 

(4,639

)

(1,839

)

(9,361

)

(3,316

)

Income from continuing operations before income taxes

 

55,852

 

50,867

 

86,190

 

91,310

 

Provision for income taxes

 

(11,661

)

(11,049

)

(18,524

)

(19,768

)

Income from continuing operations

 

44,191

 

39,818

 

67,666

 

71,542

 

Income from discontinued operations, net

 

 

123

 

 

336

 

Net income

 

$

44,191

 

$

39,941

 

$

67,666

 

$

71,878

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.67

 

$

0.61

 

$

1.03

 

$

1.10

 

Income from discontinued operations, net

 

$

 

$

 

$

 

$

0.01

 

Net income

 

$

0.67

 

$

0.61

 

$

1.03

 

$

1.11

 

Weighted average shares used in computing basic earnings per share

 

65,876

 

64,952

 

65,696

 

64,784

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.66

 

$

0.61

 

$

1.02

 

$

1.09

 

Income from discontinued operations, net

 

$

 

$

 

$

 

$

0.01

 

Net income

 

$

0.66

 

$

0.61

 

$

1.02

 

$

1.10

 

Weighted average shares used in computing diluted earnings per share

 

66,544

 

65,547

 

66,625

 

65,493

 

 

6



 

IHS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Six Months Ended May 31,

 

 

 

2012

 

2011

 

Operating activities:

 

 

 

 

 

Net income

 

$

67,666

 

$

71,878

 

Reconciliation of net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

55,293

 

38,915

 

Stock-based compensation expense

 

60,394

 

41,389

 

Excess tax benefit from stock-based compensation

 

(10,301

)

(8,412

)

Net periodic pension and postretirement expense

 

3,997

 

1,407

 

Pension and postretirement contributions

 

(65,704

)

 

Deferred income taxes

 

(7,166

)

4,461

 

Change in assets and liabilities:

 

 

 

 

 

Accounts receivable, net

 

44,078

 

32,166

 

Other current assets

 

(15,897

)

(9,730

)

Accounts payable

 

5,602

 

1,001

 

Accrued expenses

 

(28,916

)

(24,365

)

Income tax payable

 

12,739

 

(7,781

)

Deferred revenue

 

55,948

 

60,106

 

Other liabilities

 

441

 

(54

)

Net cash provided by operating activities

 

178,174

 

200,981

 

Investing activities:

 

 

 

 

 

Capital expenditures on property and equipment

 

(31,674

)

(32,531

)

Acquisitions of businesses, net of cash acquired

 

(119,395

)

(202,745

)

Intangible assets acquired

 

(3,700

)

(2,985

)

Change in other assets

 

(1,851

)

(2,317

)

Settlements of forward contracts

 

(1,522

)

(3,170

)

Net cash used in investing activities

 

(158,142

)

(243,748

)

Financing activities:

 

 

 

 

 

Proceeds from borrowings

 

85,000

 

335,000

 

Repayment of borrowings

 

(45,069

)

(334,601

)

Payment of debt issuance costs

 

 

(6,326

)

Excess tax benefit from stock-based compensation

 

10,301

 

8,412

 

Proceeds from the exercise of employee stock options

 

76

 

2,144

 

Repurchases of common stock

 

(29,314

)

(22,250

)

Net cash provided by (used in) financing activities

 

20,994

 

(17,621

)

Foreign exchange impact on cash balance

 

(7,496

)

6,767

 

Net increase (decrease) in cash and cash equivalents

 

33,530

 

(53,621

)

Cash and cash equivalents at the beginning of the period

 

234,685

 

200,735

 

Cash and cash equivalents at the end of the period

 

$

268,215

 

$

147,114

 

 

7



 

IHS INC.

SUPPLEMENTAL REVENUE DISCLOSURE

(In thousands)

(Unaudited)

 

 

 

Three Months Ended May 31,

 

Absolute

 

Organic

 

Six Months Ended May 31,

 

Absolute

 

Organic

 

 

 

2012

 

2011

 

% change

 

% change

 

2012

 

2011

 

% change

 

% change

 

Revenue by segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas revenue

 

$

230,468

 

$

194,860

 

18

%

6

%

$

437,388

 

$

374,461

 

17

%

4

%

EMEA revenue

 

113,524

 

95,335

 

19

%

9

%

212,933

 

179,500

 

19

%

7

%

APAC revenue

 

43,167

 

32,926

 

31

%

8

%

79,581

 

62,303

 

28

%

8

%

Total revenue

 

$

387,159

 

$

323,121

 

20

%

7

%

$

729,902

 

$

616,264

 

18

%

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by transaction type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription revenue

 

$

287,254

 

$

250,372

 

15

%

8

%

$

560,644

 

$

483,991

 

16

%

8

%

Consulting revenue

 

29,531

 

18,953

 

56

%

17

%

54,937

 

35,469

 

55

%

9

%

Transaction revenue

 

17,415

 

14,315

 

22

%

(8

)%

30,003

 

27,638

 

9

%

(5

)%

Other revenue

 

52,959

 

39,481

 

34

%

3

%

84,318

 

69,166

 

22

%

(9

)%

Total revenue

 

$

387,159

 

$

323,121

 

20

%

7

%

$

729,902

 

$

616,264

 

18

%

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by information domain:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy revenue

 

$

181,832

 

$

139,441

 

 

 

 

 

$

340,886

 

$

261,095

 

 

 

 

 

Product Lifecycle (PLC) revenue

 

124,091

 

106,794

 

 

 

 

 

234,820

 

206,984

 

 

 

 

 

Security revenue

 

30,023

 

29,818

 

 

 

 

 

57,244

 

56,366

 

 

 

 

 

Environment revenue

 

25,001

 

22,568

 

 

 

 

 

47,140

 

43,543

 

 

 

 

 

Macroeconomic Forecasting and Intersection revenue

 

26,212

 

24,500

 

 

 

 

 

49,812

 

48,276

 

 

 

 

 

Total revenue

 

$

387,159

 

$

323,121

 

 

 

 

 

$

729,902

 

$

616,264

 

 

 

 

 

 

8



 

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 May 31,

 

Six Months Ended May 31,

 

 

 

2012

 

2011

 

2012

 

2011

 

Net income

 

$

44,191

 

$

39,941

 

$

67,666

 

$

71,878

 

Interest income

 

(247

)

(306

)

(419

)

(491

)

Interest expense

 

4,886

 

2,145

 

9,780

 

3,807

 

Provision for income taxes

 

11,661

 

11,049

 

18,524

 

19,768

 

Depreciation and amortization

 

28,992

 

20,714

 

55,293

 

38,915

 

EBITDA

 

$

89,483

 

$

73,543

 

$

150,844

 

$

133,877

 

Stock-based compensation expense

 

26,474

 

19,291

 

60,394

 

41,389

 

Restructuring charges

 

3,628

 

702

 

11,113

 

702

 

Acquisition-related costs

 

501

 

1,243

 

1,368

 

4,549

 

Non-cash net periodic pension and postretirement expense

 

 

704

 

 

1,407

 

Income from discontinued operations, net

 

 

(123

)

 

(336

)

Adjusted EBITDA

 

$

120,086

 

$

95,360

 

$

223,719

 

$

181,588

 

 

 

 

Three Months Ended May 31,

 

Six Months Ended May 31,

 

 

 

2012

 

2011

 

2012

 

2011

 

Earnings per diluted share

 

$

0.66

 

$

0.61

 

$

1.02

 

$

1.10

 

Stock-based compensation expense

 

0.26

 

0.19

 

0.59

 

0.41

 

Restructuring charges (credits)

 

0.04

 

0.01

 

0.11

 

0.01

 

Acquisition-related costs

 

0.01

 

0.02

 

0.02

 

0.05

 

Non-cash net periodic pension and postretirement expense

 

 

0.01

 

 

0.01

 

Income from discontinued operations, net

 

 

 

 

(0.01

)

Adjusted earnings per diluted share

 

$

0.97

 

$

0.83

 

$

1.73

 

$

1.57

 

 

Note: Amounts may not sum due to rounding

 

 

 

Three Months Ended May 31,

 

Six Months Ended May 31,

 

 

 

2012

 

2011

 

2012

 

2011

 

Net cash provided by operating activities

 

145,191

 

121,713

 

178,174

 

200,981

 

Capital expenditures on property and equipment

 

(18,118

)

(16,990

)

(31,674

)

(32,531

)

Free cash flow

 

$

127,073

 

$

104,723

 

$

146,500

 

$

168,450

 

Pension deficit funding

 

 

 

57,000

 

 

Adjusted free cash flow

 

$

127,073

 

$

104,723

 

$

203,500

 

$

168,450

 

 

9



 

IHS INC.

RECONCILIATION OF SEGMENT NON-GAAP FINANCIAL MEASUREMENTS TO

MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS

(In thousands)

(Unaudited)

 

 

 

Three Months Ended May 31, 2012

 

 

 

Americas

 

EMEA

 

APAC

 

Shared Services

 

Total

 

Operating income

 

$

68,681

 

$

24,066

 

$

11,493

 

$

(43,749

)

$

60,491

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

 

 

26,474

 

26,474

 

Depreciation and amortization

 

21,221

 

6,347

 

270

 

1,154

 

28,992

 

Restructuring charges

 

2,461

 

1,252

 

(85

)

 

3,628

 

Acquisition-related costs

 

385

 

116

 

 

 

501

 

Adjusted EBITDA

 

$

92,748

 

$

31,781

 

$

11,678

 

$

(16,121

)

$

120,086

 

 

 

 

Three Months Ended May 31, 2011

 

 

 

Americas

 

EMEA

 

APAC

 

Shared Services

 

Total

 

Operating income

 

$

55,042

 

$

19,692

 

$

9,861

 

$

(31,889

)

$

52,706

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

 

 

19,291

 

19,291

 

Depreciation and amortization

 

15,319

 

4,798

 

47

 

550

 

20,714

 

Restructuring charges

 

338

 

364

 

 

 

702

 

Acquisition-related costs

 

913

 

330

 

 

 

1,243

 

Non-cash net periodic pension and postretirement expense

 

 

 

 

704

 

704

 

Adjusted EBITDA

 

$

71,612

 

$

25,184

 

$

9,908

 

$

(11,344

)

$

95,360

 

 

 

 

Six Months Ended May 31, 2012

 

 

 

Americas

 

EMEA

 

APAC

 

Shared Services

 

Total

 

Operating income

 

$

119,985

 

$

44,963

 

$

19,488

 

$

(88,885

)

$

95,551

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

 

 

60,394

 

60,394

 

Depreciation and amortization

 

41,758

 

10,181

 

321

 

3,033

 

55,293

 

Restructuring charges

 

9,460

 

1,507

 

146

 

 

11,113

 

Acquisition-related costs

 

1,252

 

116

 

 

 

1,368

 

Adjusted EBITDA

 

$

172,455

 

$

56,767

 

$

19,955

 

$

(25,458

)

$

223,719

 

 

 

 

Six Months Ended May 31, 2011

 

 

 

Americas

 

EMEA

 

APAC

 

Shared Services

 

Total

 

Operating income

 

$

103,975

 

$

36,246

 

$

18,126

 

$

(63,721

)

$

94,626

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

 

 

41,389

 

41,389

 

Depreciation and amortization

 

29,428

 

8,290

 

86

 

1,111

 

38,915

 

Restructuring charges

 

338

 

364

 

 

 

702

 

Acquisition-related costs

 

4,147

 

402

 

 

 

4,549

 

Non-cash net periodic pension and post-retirement expense

 

 

 

 

1,407

 

1,407

 

Adjusted EBITDA

 

$

137,888

 

$

45,302

 

$

18,212

 

$

(19,814

)

$

181,588

 

 

10



 

IHS INC.

SUPPLEMENTAL INFORMATION

(In thousands)

(Unaudited)

 

 

 

Three Months Ended May 31, 2012

 

Three Months Ended May 31, 2011

 

 

 

Pre-tax

 

After tax

 

Pre-tax

 

After tax

 

Stock-based compensation expense

 

$

26,474

 

$

17,202

 

$

19,291

 

$

12,476

 

Restructuring charges

 

$

3,628

 

$

2,448

 

$

702

 

$

452

 

Acquisition-related costs

 

$

501

 

$

501

 

$

1,243

 

$

1,255

 

Non-cash net periodic pension and postretirement expense

 

$

 

$

 

$

704

 

$

438

 

Income from discontinued operations, net

 

$

 

$

 

$

(212

)

$

(123

)

 

 

 

Six Months Ended May 31, 2012

 

Six Months Ended May 31, 2011

 

 

 

Pre-tax

 

After tax

 

Pre-tax

 

After tax

 

Stock-based compensation expense

 

$

60,394

 

$

39,040

 

$

41,389

 

$

26,787

 

Restructuring charges

 

$

11,113

 

$

7,256

 

$

702

 

$

452

 

Acquisition-related costs

 

$

1,368

 

$

1,368

 

$

4,549

 

$

3,477

 

Non-cash net periodic pension and postretirement expense

 

$

 

$

 

$

1,407

 

$

873

 

Income from discontinued operations, net

 

$

 

$

 

$

(562

)

$

(336

)

 

11