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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

1



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


5



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


7



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

 
 
 
 



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 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







9



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