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8-K - 8-K - IHS Inc. | q4-12earningsrelease.htm |
Exhibit 99.1
News Release |
FOR IMMEDIATE RELEASE
News Media Contact: | Investor Relations Contact: | ||
David E. Pendery | Andy Schulz | ||
+1 303 397 2468 | +1 303 397 2969 | ||
david.pendery@ihs.com | andy.schulz@ihs.com |
IHS Inc. Reports Fourth Quarter and Full Year 2012 Results
• | Quarterly revenue of $414 million, up 12% |
• | Quarterly organic revenue growth rate of 4% overall, including 7% for subscription-based business |
• | Adjusted EBITDA of $140 million, or 33.8% of revenue for the quarter |
• | EPS of $0.69 and adjusted EPS of $1.21 for the quarter |
ENGLEWOOD, Colo. (January 8, 2013) - IHS Inc. (NYSE: IHS), the leading global source of information and analytics, today reported results for the fourth quarter and full year ended November 30, 2012. Revenue for the fourth quarter of 2012 totaled $414 million, a 12 percent increase over fourth quarter 2011 revenue of $371 million. Net income for the fourth quarter of 2012 was $46 million, or $0.69 per diluted share, compared to fourth quarter 2011 net income of $23 million, or $0.34 per diluted share. Revenue for fiscal year 2012 totaled $1.530 billion, up 15 percent over the prior year total of $1.326 billion. Fiscal year 2012 net income was $158 million, or $2.37 per diluted share, compared to fiscal year 2011 net income of $135 million, or $2.06 per diluted share.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) totaled $140 million for the fourth quarter of 2012, up 17 percent from $119 million in the fourth quarter of 2011. Adjusted earnings per diluted share were $1.21 for the fourth quarter of 2012, an increase of 22 percent over the prior-year period. Adjusted EBITDA for fiscal year 2012 totaled $485 million, up 21 percent from $401 million in 2011. Adjusted earnings per diluted share were $3.94 for fiscal 2012, an increase of 15 percent over the prior-year period. Adjusted EBITDA and adjusted earnings per share (EPS) 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.
“The fourth quarter proved to be exactly what we thought it would be - solid performance in the face of strong macro-economic headwinds, and we were pleased to deliver the fourth quarter and full year goals we outlined
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in September,” said Jerre Stead, IHS chairman and chief executive officer. “As we complete key investments in 2013, we will be better positioned than ever to achieve our long-term profitable growth goals."
Fourth Quarter 2012 Details
Revenue for the fourth quarter of 2012 totaled $414 million, a 12 percent increase over fourth quarter 2011 revenue of $371 million. Organic growth in the fourth quarter of 2012 was four percent. Acquisitions added eight percent, and foreign currency movements had a negligible impact. The subscription-based business grew seven percent organically.
Three Months Ended November 30, | Absolute | Organic | Year Ended November 30, | Absolute | Organic | ||||||||||||||||||||||
2012 | 2011 | % change | % change | 2012 | 2011 | % change | % change | ||||||||||||||||||||
Subscription revenue | $ | 302,187 | $ | 272,893 | 11 | % | 7 | % | $ | 1,157,347 | $ | 1,020,800 | 13 | % | 8 | % | |||||||||||
Non-subscription revenue | 112,171 | 97,763 | 15 | % | (4 | )% | 372,522 | 304,838 | 22 | % | (4 | )% | |||||||||||||||
Total revenue | $ | 414,358 | $ | 370,656 | 12 | % | 4 | % | $ | 1,529,869 | $ | 1,325,638 | 15 | % | 5 | % |
IHS continued to grow its business overall in all three of its operating regions. The Americas segment increased its revenue during the fourth quarter by $24 million, or 11 percent, to $243 million. The EMEA segment grew its fourth quarter revenue by $13 million, or 12 percent, to $122 million. The APAC segment's revenue was up $7 million, or 15 percent, to $50 million.
Adjusted EBITDA for the fourth quarter of 2012 was $140 million, up $21 million, or 17 percent, over the prior-year period. Operating income increased $29 million, or 112 percent, to $55 million. Americas' operating income increased $10 million, or 15 percent, to $73 million. EMEA's operating income was down $2 million, or six percent, to $26 million. APAC's operating income grew $1 million, or seven percent, to $17 million.
Full Year 2012
Revenue for the year ended November 30, 2012, increased $204 million, or 15 percent, to $1.530 billion. Organic revenue growth was five percent overall and eight percent for the subscription-based portion of the business. Acquisitions added 11 percent, and foreign currency movements decreased revenue by one percent during fiscal year 2012. The Americas segment grew its revenue during the year ended November 30, 2012, by $114 million, or 14 percent, to $912 million. The EMEA segment increased its fiscal year 2012 revenue by $59 million, or 15 percent, to $443 million. The APAC segment increased its revenue by $31 million, or 22 percent, to $174 million, during fiscal 2012.
Adjusted EBITDA for fiscal 2012 increased $84 million, or 21 percent, to $485 million. Operating income increased $35 million, or 20 percent, year-over-year to $207 million. Americas’ operating income was $263 million, up $38 million, or 17 percent, over the prior-year period. EMEA grew its fiscal year 2012 operating income to $95 million, up $13 million, or 16 percent, over the prior year. APAC’s operating income was $46 million, an increase of $2 million, or four percent, over last year.
Cash Flows
Excluding a $57 million pension funding contribution, IHS generated $371 million of cash flow from operations during the year ended November 30, 2012, representing a nine percent increase over last year's $342 million.
Balance Sheet
IHS ended fourth quarter 2012 with $345 million of cash and cash equivalents and $1.061 billion of debt.
Outlook (forward-looking statement)
For the year ending November 30, 2013, IHS reaffirms and expects:
• | All-in revenue in a range of $1.640 billion to $1.710 billion, including an overall organic growth rate expected to be between 5-7 percent at the midpoint; |
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• | All-in adjusted EBITDA in a range of $540 million to $582 million; and |
• | Adjusted EPS between $4.23 and $4.43 per diluted share. |
Additionally, for the year ending November 30, 2013, IHS expects:
• | Depreciation and amortization expense to be approximately $140-145 million; |
• | Net interest expense to be approximately $21 million; |
• | Stock-based compensation expense to be approximately $138-142 million; |
• | An adjusted tax rate of approximately 26-28 percent; and |
• | Fully diluted shares to be approximately 67 million. |
The above outlook assumes no further currency movements, acquisitions, divestitures, pension mark-to-market adjustments or unanticipated events. See discussion of non-GAAP financial measures at the end of this release.
As previously announced, IHS will hold a conference call to discuss fourth quarter and full year 2012 results on January 8, 2013, at 8:00 a.m. EST. 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 post-retirement 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 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.
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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 post-retirement 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 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs more than 6,000 people in 31 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.
© 2013 IHS Inc. All rights reserved.
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IHS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per-share amounts)
(Unaudited)
As of | As of | ||||||
November 30, 2012 | November 30, 2011 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 345,008 | $ | 234,685 | |||
Accounts receivable, net | 372,117 | 326,009 | |||||
Income tax receivable | 20,464 | 25,194 | |||||
Deferred subscription costs | 47,065 | 43,136 | |||||
Deferred income taxes | 55,084 | 45,253 | |||||
Other | 24,145 | 23,801 | |||||
Total current assets | 863,883 | 698,078 | |||||
Non-current assets: | |||||||
Property and equipment, net | 163,013 | 128,418 | |||||
Intangible assets, net | 554,552 | 514,949 | |||||
Goodwill, net | 1,959,223 | 1,722,312 | |||||
Other | 8,540 | 9,280 | |||||
Total non-current assets | 2,685,328 | 2,374,959 | |||||
Total assets | $ | 3,549,211 | $ | 3,073,037 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Short-term debt | $ | 170,102 | $ | 144,563 | |||
Accounts payable | 52,079 | 32,428 | |||||
Accrued compensation | 50,497 | 57,516 | |||||
Accrued royalties | 33,637 | 26,178 | |||||
Other accrued expenses | 55,304 | 69,000 | |||||
Deferred revenue | 515,318 | 487,172 | |||||
Total current liabilities | 876,937 | 816,857 | |||||
Long-term debt | 890,922 | 658,911 | |||||
Accrued pension liability | 19,602 | 59,460 | |||||
Accrued postretirement benefits | 10,425 | 9,200 | |||||
Deferred income taxes | 139,235 | 123,895 | |||||
Other liabilities | 27,732 | 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 65,577,530 and 65,121,884 shares outstanding at November 30, 2012 and November 30, 2011, respectively | 676 | 675 | |||||
Additional paid-in capital | 681,409 | 636,440 | |||||
Treasury stock, at cost: 2,043,837 and 2,405,460 shares at November 30, 2012 and 2011, respectively | (139,821 | ) | (133,803 | ) | |||
Retained earnings | 1,088,787 | 930,619 | |||||
Accumulated other comprehensive loss | (46,693 | ) | (49,202 | ) | |||
Total stockholders’ equity | 1,584,358 | 1,384,729 | |||||
Total liabilities and stockholders’ equity | $ | 3,549,211 | $ | 3,073,037 |
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IHS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per-share amounts)
(Unaudited)
Three Months Ended November 30, | Year Ended November 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenue: | |||||||||||||||
Products | $ | 357,925 | $ | 319,085 | $ | 1,322,369 | $ | 1,151,091 | |||||||
Services | 56,433 | 51,571 | 207,500 | 174,547 | |||||||||||
Total revenue | 414,358 | 370,656 | 1,529,869 | 1,325,638 | |||||||||||
Operating expenses: | |||||||||||||||
Cost of revenue: | |||||||||||||||
Products | 134,283 | 120,701 | 527,214 | 464,138 | |||||||||||
Services | 24,624 | 25,906 | 97,300 | 94,354 | |||||||||||
Total cost of revenue (includes stock-based compensation expense of $1,739; $1,042; $6,206 and $3,680 for the three months and years ended November 30, 2012 and 2011, respectively) | 158,907 | 146,607 | 624,514 | 558,492 | |||||||||||
Selling, general and administrative (includes stock-based compensation expense of $28,872; $21,339; $115,337 and $82,514 for the three months and years ended November 30, 2012 and 2011, respectively) | 143,503 | 128,689 | 534,043 | 453,481 | |||||||||||
Depreciation and amortization | 31,560 | 25,628 | 118,243 | 88,039 | |||||||||||
Restructuring charges | 4,749 | 540 | 16,829 | 1,242 | |||||||||||
Acquisition-related costs | 675 | 1,911 | 4,147 | 8,000 | |||||||||||
Net periodic pension and postretirement expense | 18,919 | 42,612 | 24,917 | 44,995 | |||||||||||
Other expense (income), net | 569 | (1,495 | ) | (111 | ) | (1,079 | ) | ||||||||
Total operating expenses | 358,882 | 344,492 | 1,322,582 | 1,153,170 | |||||||||||
Operating income | 55,476 | 26,164 | 207,287 | 172,468 | |||||||||||
Interest income | 325 | 208 | 999 | 862 | |||||||||||
Interest expense | (5,736 | ) | (4,572 | ) | (20,573 | ) | (11,346 | ) | |||||||
Non-operating expense, net | (5,411 | ) | (4,364 | ) | (19,574 | ) | (10,484 | ) | |||||||
Income from continuing operations before income taxes | 50,065 | 21,800 | 187,713 | 161,984 | |||||||||||
Income tax benefit (provision) | (3,656 | ) | 1,256 | (29,564 | ) | (26,695 | ) | ||||||||
Income from continuing operations | 46,409 | 23,056 | 158,149 | 135,289 | |||||||||||
Income (loss) from discontinued operations, net | 11 | (328 | ) | 19 | 126 | ||||||||||
Net income | $ | 46,420 | $ | 22,728 | $ | 158,168 | $ | 135,415 | |||||||
Basic earnings per share: | |||||||||||||||
Income from continuing operations | $ | 0.70 | $ | 0.35 | $ | 2.40 | $ | 2.08 | |||||||
Income (loss) from discontinued operations, net | $ | — | $ | (0.01 | ) | $ | — | $ | — | ||||||
Net income | $ | 0.70 | $ | 0.35 | $ | 2.40 | $ | 2.09 | |||||||
Weighted average shares used in computing basic earnings per share | 65,974 | 65,163 | 65,840 | 64,938 | |||||||||||
Diluted earnings per share: | |||||||||||||||
Income from continuing operations | $ | 0.69 | $ | 0.35 | $ | 2.37 | $ | 2.06 | |||||||
Income (loss) from discontinued operations, net | $ | — | $ | — | $ | — | $ | — | |||||||
Net income | $ | 0.69 | $ | 0.34 | $ | 2.37 | $ | 2.06 | |||||||
Weighted average shares used in computing diluted earnings per share | 67,136 | 66,199 | 66,735 | 65,716 |
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IHS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Year Ended November 30, | |||||||
2012 | 2011 | ||||||
Operating activities: | |||||||
Net income | $ | 158,168 | $ | 135,415 | |||
Reconciliation of net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 118,243 | 88,039 | |||||
Stock-based compensation expense | 121,543 | 86,194 | |||||
Excess tax benefit from stock-based compensation | (13,199 | ) | (9,943 | ) | |||
Net periodic pension and postretirement expense | 24,917 | 44,648 | |||||
Pension and postretirement contributions | (68,339 | ) | — | ||||
Deferred income taxes | (16,451 | ) | (1,683 | ) | |||
Change in assets and liabilities: | |||||||
Accounts receivable, net | (35,410 | ) | (35,137 | ) | |||
Other current assets | (2,246 | ) | (1,508 | ) | |||
Accounts payable | 22,383 | (4,302 | ) | ||||
Accrued expenses | (17,567 | ) | 5,267 | ||||
Income tax payable | 21,220 | (9,082 | ) | ||||
Deferred revenue | 692 | 43,757 | |||||
Other liabilities | 419 | 385 | |||||
Net cash provided by operating activities | 314,373 | 342,050 | |||||
Investing activities: | |||||||
Capital expenditures on property and equipment | (64,732 | ) | (54,340 | ) | |||
Acquisitions of businesses, net of cash acquired | (306,268 | ) | (730,058 | ) | |||
Intangible assets acquired | (3,700 | ) | (2,985 | ) | |||
Change in other assets | 1,708 | (5,687 | ) | ||||
Settlements of forward contracts | (2,268 | ) | (168 | ) | |||
Net cash used in investing activities | (375,260 | ) | (793,238 | ) | |||
Financing activities: | |||||||
Proceeds from borrowings | 750,001 | 954,031 | |||||
Repayment of borrowings | (493,080 | ) | (444,775 | ) | |||
Payment of debt issuance costs | (824 | ) | (6,326 | ) | |||
Excess tax benefit from stock-based compensation | 13,199 | 9,992 | |||||
Proceeds from the exercise of employee stock options | 2,938 | 2,144 | |||||
Repurchases of common stock | (92,823 | ) | (32,249 | ) | |||
Net cash provided by financing activities | 179,411 | 482,817 | |||||
Foreign exchange impact on cash balance | (8,201 | ) | 2,321 | ||||
Net increase in cash and cash equivalents | 110,323 | 33,950 | |||||
Cash and cash equivalents at the beginning of the period | 234,685 | 200,735 | |||||
Cash and cash equivalents at the end of the period | $ | 345,008 | $ | 234,685 |
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IHS INC.
SUPPLEMENTAL REVENUE DISCLOSURE
(In thousands)
(Unaudited)
Three Months Ended November 30, | Absolute | Organic | Year Ended November 30, | Absolute | Organic | ||||||||||||||||||||||
2012 | 2011 | % change | % change | 2012 | 2011 | % change | % change | ||||||||||||||||||||
Revenue by segment: | |||||||||||||||||||||||||||
Americas revenue | $ | 242,733 | $ | 218,484 | 11 | % | 2 | % | $ | 912,490 | $ | 798,673 | 14 | % | 3 | % | |||||||||||
EMEA revenue | 121,947 | 108,995 | 12 | % | 6 | % | 443,385 | 384,441 | 15 | % | 7 | % | |||||||||||||||
APAC revenue | 49,678 | 43,177 | 15 | % | 9 | % | 173,994 | 142,524 | 22 | % | 9 | % | |||||||||||||||
Total revenue | $ | 414,358 | $ | 370,656 | 12 | % | 4 | % | $ | 1,529,869 | $ | 1,325,638 | 15 | % | 5 | % | |||||||||||
Revenue by transaction type: | |||||||||||||||||||||||||||
Subscription revenue | $ | 302,187 | $ | 272,893 | 11 | % | 7 | % | $ | 1,157,347 | $ | 1,020,800 | 13 | % | 8 | % | |||||||||||
Non-subscription revenue | 112,171 | 97,763 | 15 | % | (4 | )% | 372,522 | 304,838 | 22 | % | (4 | )% | |||||||||||||||
Total revenue | $ | 414,358 | $ | 370,656 | 12 | % | 4 | % | $ | 1,529,869 | $ | 1,325,638 | 15 | % | 5 | % | |||||||||||
Revenue by information domain: | |||||||||||||||||||||||||||
Energy revenue | $ | 191,103 | $ | 168,079 | $ | 712,061 | $ | 571,782 | |||||||||||||||||||
Product Lifecycle (PLC) revenue | 137,274 | 115,409 | 501,569 | 436,533 | |||||||||||||||||||||||
Security revenue | 33,328 | 30,819 | 120,852 | 119,389 | |||||||||||||||||||||||
Environment revenue | 31,873 | 30,156 | 103,751 | 98,934 | |||||||||||||||||||||||
Macroeconomic Forecasting and Intersection revenue | 20,780 | 26,193 | 91,636 | 99,000 | |||||||||||||||||||||||
Total revenue | $ | 414,358 | $ | 370,656 | $ | 1,529,869 | $ | 1,325,638 |
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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 November 30, | Year Ended November 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income | $ | 46,420 | $ | 22,728 | $ | 158,168 | $ | 135,415 | |||||||
Interest income | (325 | ) | (208 | ) | (999 | ) | (862 | ) | |||||||
Interest expense | 5,736 | 4,572 | 20,573 | 11,346 | |||||||||||
Income tax (benefit) provision | 3,656 | (1,256 | ) | 29,564 | 26,695 | ||||||||||
Depreciation and amortization | 31,560 | 25,628 | 118,243 | 88,039 | |||||||||||
EBITDA | $ | 87,047 | $ | 51,464 | $ | 325,549 | $ | 260,633 | |||||||
Stock-based compensation expense | 30,611 | 22,381 | 121,543 | 86,194 | |||||||||||
Restructuring charges | 4,749 | 540 | 16,829 | 1,242 | |||||||||||
Acquisition-related costs | 675 | 1,911 | 4,147 | 8,000 | |||||||||||
Non-cash net periodic pension and postretirement expense | 16,922 | 42,538 | 16,922 | 44,648 | |||||||||||
(Income) loss from discontinued operations, net | (11 | ) | 328 | (19 | ) | (126 | ) | ||||||||
Adjusted EBITDA | $ | 139,993 | $ | 119,162 | $ | 484,971 | $ | 400,591 | |||||||
Three Months Ended November 30, | Year Ended November 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Earnings per diluted share | $ | 0.69 | $ | 0.34 | $ | 2.37 | $ | 2.06 | |||||||
Stock-based compensation expense | 0.29 | 0.22 | 1.18 | 0.85 | |||||||||||
Restructuring charges | 0.05 | 0.01 | 0.17 | 0.01 | |||||||||||
Acquisition-related costs | 0.01 | 0.02 | 0.05 | 0.10 | |||||||||||
Non-cash net periodic pension and postretirement expense | 0.17 | 0.40 | 0.17 | 0.42 | |||||||||||
(Income) loss from discontinued operations, net | — | — | — | — | |||||||||||
Adjusted earnings per diluted share | $ | 1.21 | $ | 0.99 | $ | 3.94 | $ | 3.44 | |||||||
Note: Amounts may not sum due to rounding | |||||||||||||||
Three Months Ended November 30, | Year Ended November 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net cash provided by operating activities | $ | 68,117 | $ | 88,808 | $ | 314,373 | $ | 342,050 | |||||||
Capital expenditures on property and equipment | (15,033 | ) | (8,967 | ) | (64,732 | ) | (54,340 | ) | |||||||
Free cash flow | $ | 53,084 | $ | 79,841 | $ | 249,641 | $ | 287,710 | |||||||
Pension deficit funding | — | — | 57,000 | — | |||||||||||
Adjusted free cash flow | $ | 53,084 | $ | 79,841 | $ | 306,641 | $ | 287,710 |
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IHS INC.
RECONCILIATION OF SEGMENT NON-GAAP FINANCIAL MEASUREMENTS TO
MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(In thousands)
(Unaudited)
Three Months Ended November 30, 2012 | |||||||||||||||||||
Americas | EMEA | APAC | Shared Services | Total | |||||||||||||||
Operating income | $ | 72,882 | $ | 25,591 | $ | 16,553 | $ | (59,550 | ) | $ | 55,476 | ||||||||
Adjustments: | |||||||||||||||||||
Stock-based compensation expense | — | — | — | 30,611 | 30,611 | ||||||||||||||
Depreciation and amortization | 23,417 | 6,019 | 354 | 1,770 | 31,560 | ||||||||||||||
Restructuring charges | 3,533 | 1,092 | 124 | — | 4,749 | ||||||||||||||
Acquisition-related costs | 675 | — | — | — | 675 | ||||||||||||||
Non-cash net periodic pension and postretirement expense | — | 5,762 | — | 11,160 | 16,922 | ||||||||||||||
Adjusted EBITDA | $ | 100,507 | $ | 38,464 | $ | 17,031 | $ | (16,009 | ) | $ | 139,993 | ||||||||
Three Months Ended November 30, 2011 | |||||||||||||||||||
Americas | EMEA | APAC | Shared Services | Total | |||||||||||||||
Operating income | $ | 63,240 | $ | 27,210 | $ | 15,415 | $ | (79,701 | ) | $ | 26,164 | ||||||||
Adjustments: | |||||||||||||||||||
Stock-based compensation expense | — | — | — | 22,381 | 22,381 | ||||||||||||||
Depreciation and amortization | 20,775 | 4,307 | 38 | 508 | 25,628 | ||||||||||||||
Restructuring charges | — | 540 | — | — | 540 | ||||||||||||||
Acquisition-related costs | 1,911 | — | — | — | 1,911 | ||||||||||||||
Non-cash net periodic pension and postretirement expense | — | — | — | 42,538 | 42,538 | ||||||||||||||
Adjusted EBITDA | $ | 85,926 | $ | 32,057 | $ | 15,453 | $ | (14,274 | ) | $ | 119,162 | ||||||||
Year Ended November 30, 2012 | |||||||||||||||||||
Americas | EMEA | APAC | Shared Services | Total | |||||||||||||||
Operating income | $ | 262,953 | $ | 95,144 | $ | 46,042 | $ | (196,852 | ) | $ | 207,287 | ||||||||
Adjustments: | |||||||||||||||||||
Stock-based compensation expense | — | — | — | 121,543 | 121,543 | ||||||||||||||
Depreciation and amortization | 88,456 | 22,188 | 1,065 | 6,534 | 118,243 | ||||||||||||||
Restructuring charges | 13,430 | 3,033 | 366 | — | 16,829 | ||||||||||||||
Acquisition-related costs | 3,929 | 218 | — | — | 4,147 | ||||||||||||||
Non-cash net periodic pension and postretirement expense | — | 5,762 | — | 11,160 | 16,922 | ||||||||||||||
Adjusted EBITDA | $ | 368,768 | $ | 126,345 | $ | 47,473 | $ | (57,615 | ) | $ | 484,971 | ||||||||
Year Ended November 30, 2011 | |||||||||||||||||||
Americas | EMEA | APAC | Shared Services | Total | |||||||||||||||
Operating income | $ | 224,699 | $ | 82,314 | $ | 44,452 | $ | (178,997 | ) | $ | 172,468 | ||||||||
Adjustments: | |||||||||||||||||||
Stock-based compensation expense | — | — | — | 86,194 | 86,194 | ||||||||||||||
Depreciation and amortization | 68,285 | 17,369 | 172 | 2,213 | 88,039 | ||||||||||||||
Restructuring charges | 338 | 904 | — | — | 1,242 | ||||||||||||||
Acquisition-related costs | 7,598 | 402 | — | — | 8,000 | ||||||||||||||
Non-cash net periodic pension and postretirement expense | — | — | — | 44,648 | 44,648 | ||||||||||||||
Adjusted EBITDA | $ | 300,920 | $ | 100,989 | $ | 44,624 | $ | (45,942 | ) | $ | 400,591 |
10
IHS INC.
SUPPLEMENTAL INFORMATION
(In thousands)
(Unaudited)
Three Months Ended November 30, 2012 | Three Months Ended November 30, 2011 | ||||||||||||||
Pre-tax | After tax | Pre-tax | After tax | ||||||||||||
Stock-based compensation expense | $ | 30,611 | $ | 19,803 | $ | 22,381 | $ | 14,323 | |||||||
Restructuring charges | $ | 4,749 | $ | 3,209 | $ | 540 | $ | 392 | |||||||
Acquisition-related costs | $ | 675 | $ | 544 | $ | 1,911 | $ | 1,549 | |||||||
Non-cash net periodic pension and postretirement expense | $ | 16,922 | $ | 11,336 | $ | 42,538 | $ | 26,373 | |||||||
(Income) loss from discontinued operations, net | $ | (18 | ) | $ | (11 | ) | $ | 400 | $ | 328 | |||||
Year Ended November 30, 2012 | Year Ended November 30, 2011 | ||||||||||||||
Pre-tax | After tax | Pre-tax | After tax | ||||||||||||
Stock-based compensation expense | $ | 121,543 | $ | 78,584 | $ | 86,194 | $ | 55,692 | |||||||
Restructuring charges | $ | 16,829 | $ | 11,410 | $ | 1,242 | $ | 844 | |||||||
Acquisition-related costs | $ | 4,147 | $ | 3,346 | $ | 8,000 | $ | 6,566 | |||||||
Non-cash net periodic pension and postretirement expense | $ | 16,922 | $ | 11,336 | $ | 44,648 | $ | 27,681 | |||||||
(Income) loss from discontinued operations, net | $ | (36 | ) | $ | (19 | ) | $ | (347 | ) | $ | (126 | ) |
11