Exhibit 99.1
News Release |
FOR IMMEDIATE RELEASE |
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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 Strong Third Quarter 2009 Results
Reports Record Revenue and Adjusted EBITDA
Reports Record EPS of $0.54 and Adjusted EPS of $0.66
ENGLEWOOD, Colo. (September 17, 2009) — IHS Inc. (NYSE: IHS), a leading global source of critical information and insight, today reported strong results for the third quarter ended August 31, 2009. Revenue for the third quarter of 2009 totaled $239 million, a 15 percent increase over third quarter 2008 revenue of $207 million. Net income for the third quarter of 2009 was $34.7 million, or $0.54 per diluted share, compared to third quarter 2008 net income of $21.0 million, or $0.33 per diluted share. The company’s reported third quarter 2009 revenue and net income figures were the highest such quarterly amounts in its history.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) totaled $70.8 million for the third quarter of 2009, up 24 percent from $57.2 million in the third quarter of 2008. Adjusted earnings per diluted share were $0.66 for the third quarter of 2009, an increase of 18 percent over the prior-year period. The company’s reported third quarter 2009 Adjusted EBITDA and adjusted earnings per diluted share figures were the highest such quarterly amounts in its history. 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 operational execution helped generate solid financial results despite the overall economic environment,” said Jerre Stead, IHS chairman and chief executive officer. “With the acquisition of Environmental Support Solutions, we continue building our Environment domain offerings which represent exciting prospects for our future growth.”
1
Third Quarter 2009 Details
Revenue for the third quarter of 2009 totaled $239 million, a $32 million, or 15 percent, increase over the prior year. Organic revenue growth in the third quarter of 2009 was two percent overall and nine percent for the subscription-based portion of the business, which represented 80 percent of total revenue. Acquisitions contributed 17 percent of the increase. Foreign currency movements decreased revenue by four percent compared to last year’s third quarter. The company continued to grow its business overall and in all three regions. The Americas (North and South America) segment increased its revenue during the third quarter by $18.7 million, or 15 percent, to $148 million. The EMEA (Europe, Middle East and Africa) segment grew its third quarter revenue by $7.9 million, or 12 percent, to $72.6 million. The APAC (Asia Pacific) segment’s revenue was up $5.4 million, or 39 percent, to $19.2 million.
Adjusted EBITDA for the third quarter of 2009 was $70.8 million, up $13.6 million, or 24 percent, over the prior-year period. Operating income increased $22.1 million year-over-year to $46.2 million, although the third quarter of 2008 included a $12.5 million restructuring charge. Americas’ operating income increased $11.4 million, or 31 percent, to $48.5 million (up 13 percent before the restructuring charge). EMEA’s operating income was up $8.1 million, or 128 percent, to $14.4 million (up 14 percent before the restructuring charge). APAC’s operating income grew $2.1 million, or 50 percent, to $6.3 million.
Year-to-Date 2009
Revenue for the nine months ended August 31, 2009, totaled $710 million, up $97 million, or 16 percent, over the prior-year total. Year-to-date 2009 organic revenue growth was four percent overall and ten percent for the subscription-based portion of the business. Acquisitions added 18 percent. Foreign exchange movements offset the above by six percent year to date. The Americas segment grew its revenue during the first nine months of 2009 by $68.3 million, or 18 percent, to $445 million. The EMEA segment increased its year-to-date 2009 revenue by $14.0 million, or seven percent, to $209 million. The APAC segment increased its revenue by $14.4 million, or 34 percent, to $56.4 million, during the first nine months of 2008.
Adjusted EBITDA for the nine months ended August 31, 2009, totaled $201 million, up $39.5 million, or 24 percent. Operating income increased $38.2 million, or 43 percent, year-over-year to $126 million, in part due to the inclusion of a $12.5 million restructuring charge in the third quarter of 2008. Americas’ operating income was $140 million, up $25.1 million, or 22 percent, over the prior-year period (up 16 percent before the restructuring charge). EMEA grew its year-to-date 2009 operating income to $40.9 million, up $12.2 million, or 43 percent, during the first nine months of 2008 (up 17 percent before the restructuring charge). APAC’s operating income was $17.8 million, an increase of $5.8 million, or 49 percent, over last year.
2
Net income for the nine months ended August 31, 2009 increased 43 percent to $93.8 million, or $1.47 per diluted share, compared to prior-year net income of $65.7 million, or $1.04 per diluted share.
Cash Flows
IHS generated $173 million of cash flow from operations during the nine months ended August 31, 2009, as compared to last year’s $138 million.
Balance Sheet
IHS ended third quarter 2009 with $118 million of cash and cash equivalents, and $77 million of debt.
“We are pleased with our continued profit growth and cash flow generation,” stated Michael J. Sullivan, IHS executive vice president and chief financial officer. “We will continue to manage our expenses carefully while looking for optimal ways to deploy our capital.”
Share Repurchase Program
During the third quarter of 2009, IHS withheld 41,198 shares valued at $2.0 million to fund employee statutory withholding tax requirements stemming from employee equity awards. As shares vest and tax withholdings come due, IHS withholds enough shares in treasury to cover the tax liability and make a payment to the tax authority out of corporate cash.
Outlook (forward-looking statement)
For the year ending November 30, 2009, we expect:
· All-in revenue growth of 14 to 15 percent from a 2008 base of $844 million;
· All-in adjusted EBITDA growth of 22 to 24 percent from a 2008 base of $225 million;
· Depreciation and amortization expense to be in the range of $50-52 million;
· Net interest expense to approximate $1-2 million;
· Stock-based compensation expense to be in the range of $56-58 million;
· Effective tax rate to be approximately 28 to 29 percent; and
· Weighted average diluted shares to be approximately 64 million.
For the year ending November 30, 2010, we expect all-in revenue in a range of $1.04 billion to $1.08 billion and adjusted EBITDA in a range of $312 million to $324 million. IHS expects to provide full 2010 guidance in December 2009.
This above outlook includes acquisitions to date and assumes constant currencies and no further acquisitions, restructurings or unanticipated events. See discussion of adjusted EBITDA and non-GAAP financial measures at the end of this release.
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As previously announced, IHS will hold a conference call to discuss third quarter and year-to-date 2009 results on September 17, 2009, at 3:00 p.m. MDT (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 includes our share of adjusted EBITDA from an unconsolidated joint venture and excludes non-cash items, gains and losses on sales of assets and investments and other items that management does not utilize in assessing our operating performance (as further described in the attached financial schedules). Adjusted earnings per diluted share exclude similar non-cash 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 research analysts, investment bankers and lenders to assess our operating performance. For example, a measure similar to EBITDA is required by the lenders under our credit facility.
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) or (ii) items that management does not consider to be useful in assessing our operating performance
4
(e.g., income taxes and gain 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 a leading global source of critical information and insight, dedicated to providing the most complete and trusted data and expertise. IHS product and service solutions span four areas of information that encompass the most important concerns facing global business today: Energy, Product Lifecycle, Security and Environment, all supported by Macroeconomics. By focusing on customers first, IHS enables innovative and successful decision-making for customers ranging from governments and multinational companies to smaller companies and technical professionals in more than 180 countries. IHS is celebrating its 50th anniversary in 2009 and employs approximately 4,000 people in 20 countries.
IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. Copyright © 2009 IHS Inc. All rights reserved.
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5
IHS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per-share amounts)
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| August 31, |
| November 30, |
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| 2009 |
| 2008 |
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| (Unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
| $ | 118,471 |
| $ | 31,040 |
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Accounts receivable, net |
| 167,190 |
| 207,815 |
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Deferred subscription costs |
| 35,682 |
| 35,948 |
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Deferred income taxes |
| 28,317 |
| 28,801 |
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Other |
| 15,885 |
| 14,213 |
| ||
Total current assets |
| 365,545 |
| 317,817 |
| ||
Non-current assets: |
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Property and equipment, net |
| 68,910 |
| 59,578 |
| ||
Equity investments in joint venture |
| — |
| 56,139 |
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Intangible assets, net |
| 294,761 |
| 285,902 |
| ||
Goodwill, net |
| 828,375 |
| 705,077 |
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Prepaid pension asset |
| 11,533 |
| 8,768 |
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Other |
| 3,082 |
| 2,899 |
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Total non-current assets |
| 1,206,661 |
| 1,118,363 |
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Total assets |
| $ | 1,572,206 |
| $ | 1,436,180 |
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Short-term debt |
| $ | 77,274 |
| $ | 96,020 |
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Accounts payable |
| 20,002 |
| 35,084 |
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Accrued compensation |
| 30,500 |
| 39,083 |
| ||
Accrued royalties |
| 13,925 |
| 24,769 |
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Other accrued expenses |
| 42,746 |
| 58,831 |
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Income tax payable |
| 4,200 |
| 3,994 |
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Deferred subscription revenue |
| 309,750 |
| 288,145 |
| ||
Total current liabilities |
| 498,397 |
| 545,926 |
| ||
Long-term debt |
| — |
| — |
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Accrued pension liability |
| 7,066 |
| 6,778 |
| ||
Accrued post-retirement benefits |
| 6,577 |
| 8,852 |
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Deferred income taxes |
| 76,497 |
| 65,749 |
| ||
Other liabilities |
| 11,714 |
| 7,820 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Class A common stock, $0.01 par value per share, 80,000,000 shares authorized, 64,745,908 and 64,090,207 shares issued and 63,247,630 and 62,802,179 shares outstanding at August 31, 2009 and November 30, 2008, respectively |
| 647 |
| 641 |
| ||
Additional paid-in capital |
| 459,821 |
| 408,007 |
| ||
Treasury stock, at cost; 1,498,278 and 1,288,028 shares at August 31, 2009 and November 30, 2008, respectively |
| (74,154 | ) | (64,632 | ) | ||
Retained earnings |
| 677,983 |
| 584,219 |
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Accumulated other comprehensive loss |
| (92,342 | ) | (127,180 | ) | ||
Total stockholders’ equity |
| 971,955 |
| 801,055 |
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Total liabilities and stockholders’ equity |
| $ | 1,572,206 |
| $ | 1,436,180 |
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6
IHS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share amounts)
|
| Three Months Ended August 31, |
| Nine Months Ended August 31, |
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| 2009 |
| 2008 |
| 2009 |
| 2008 |
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| (Unaudited) |
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Revenue: |
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|
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|
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Products |
| $ | 213,505 |
| $ | 182,032 |
| $ | 618,533 |
| $ | 524,317 |
|
Services |
| 25,980 |
| 25,402 |
| 91,639 |
| 89,087 |
| ||||
Total revenue |
| 239,485 |
| 207,434 |
| 710,172 |
| 613,404 |
| ||||
Operating expenses: |
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|
|
|
|
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Cost of revenue: |
|
|
|
|
|
|
|
|
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Products |
| 87,078 |
| 74,700 |
| 251,771 |
| 216,502 |
| ||||
Services |
| 14,670 |
| 16,641 |
| 50,808 |
| 57,179 |
| ||||
Total cost of revenue (includes stock-based compensation expense of $450 ; $391; $1,910 and $1,078 for the three and nine months ended August 31, 2009 and 2008, respectively) |
| 101,748 |
| 91,341 |
| 302,579 |
| 273,681 |
| ||||
Selling, general and administrative (includes stock-based compensation expense of $12,371; $9,961; $42,352 and $32,352 for the three and nine months ended August 31, 2009 and 2008, respectively) |
| 79,369 |
| 73,036 |
| 248,423 |
| 217,845 |
| ||||
Depreciation and amortization |
| 12,771 |
| 9,675 |
| 36,031 |
| 28,181 |
| ||||
Restructuring charge (credit) |
| — |
| 12,479 |
| (416 | ) | 12,479 |
| ||||
Gain on sales of assets, net |
| — |
| — |
| — |
| (119 | ) | ||||
Net periodic pension and post-retirement benefits |
| (679 | ) | (1,082 | ) | (2,057 | ) | (3,261 | ) | ||||
Other expense (income), net |
| 60 |
| (2,106 | ) | (409 | ) | (3,242 | ) | ||||
Total operating expenses |
| 193,269 |
| 183,343 |
| 584,151 |
| 525,564 |
| ||||
Operating income |
| 46,216 |
| 24,091 |
| 126,021 |
| 87,840 |
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Interest income |
| 219 |
| 754 |
| 782 |
| 2,668 |
| ||||
Interest expense |
| (416 | ) | (363 | ) | (1,677 | ) | (1,342 | ) | ||||
Non-operating (loss) income, net |
| (197 | ) | 391 |
| (895 | ) | 1,326 |
| ||||
Income from continuing operations before income taxes, income from equity investments and minority interests |
| 46,019 |
| 24,482 |
| 125,126 |
| 89,166 |
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Provision for income taxes |
| (11,313 | ) | (4,585 | ) | (29,218 | ) | (25,609 | ) | ||||
Income from continuing operations before income from equity investments and minority interests |
| 34,706 |
| 19,897 |
| 95,908 |
| 63,557 |
| ||||
Income from equity investments |
| — |
| 1,169 |
| — |
| 2,213 |
| ||||
Minority interests |
| — |
| (42 | ) | (2,144 | ) | (57 | ) | ||||
Net income |
| $ | 34,706 |
| $ | 21,024 |
| $ | 93,764 |
| $ | 65,713 |
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Net income per share: |
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|
|
|
|
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|
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Basic (Class A common stock for 2009; Class A and Class B common stock for 2008*) |
| $ | 0.55 |
| $ | 0.34 |
| $ | 1.49 |
| $ | 1.06 |
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Diluted (Class A common stock for 2009; Class A and Class B common stock for 2008*) |
| $ | 0.54 |
| $ | 0.33 |
| $ | 1.47 |
| $ | 1.04 |
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Weighted average shares: |
|
|
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|
|
|
|
|
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Basic (Class A common stock for 2009; Class A and Class B common stock for 2008*) |
| 63,160 |
| 61,892 |
| 62,998 |
| 62,028 |
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Diluted (Class A common stock for 2009; Class A and Class B common stock for 2008*) |
| 64,024 |
| 62,770 |
| 63,837 |
| 62,947 |
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*Note that in September 2008, the holder of the Class B common stock elected to convert these shares
one-for-one to Class A common stock, after which no shares of Class B common stock were outstanding.
7
IHS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
| Nine Months Ended August 31, |
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| 2009 |
| 2008 |
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| (Unaudited) |
| ||||
Operating activities |
|
|
|
|
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Net income |
| $ | 93,764 |
| $ | 65,713 |
|
Reconciliation of net income to net cash provided by operating activities: |
|
|
|
|
| ||
Depreciation and amortization |
| 36,031 |
| 28,181 |
| ||
Stock-based compensation expense |
| 44,262 |
| 33,430 |
| ||
Gain on sales of assets, net |
| — |
| (119 | ) | ||
Impairment of assets |
| — |
| 323 |
| ||
Excess tax benefit from stock-based compensation |
| (9,796 | ) | (1,509 | ) | ||
Distributions from equity-method investment |
| — |
| 2,603 |
| ||
Non-cash net periodic pension and post-retirement benefits |
| (3,004 | ) | (4,685 | ) | ||
Undistributed earnings of equity-method investments, net |
| (17 | ) | (2,213 | ) | ||
Minority interests |
| 497 |
| 57 |
| ||
Deferred income taxes |
| 11,380 |
| 2,082 |
| ||
Change in assets and liabilities: |
|
|
|
|
| ||
Accounts receivable, net |
| 50,793 |
| 24,555 |
| ||
Other current assets |
| 1,541 |
| (2,881 | ) | ||
Accounts payable |
| (18,196 | ) | (15,437 | ) | ||
Accrued expenses |
| (36,036 | ) | (16,503 | ) | ||
Income taxes |
| (1,308 | ) | (2,615 | ) | ||
Deferred subscription revenue |
| 2,038 |
| 26,501 |
| ||
Other liabilities |
| 750 |
| 617 |
| ||
Net cash provided by operating activities |
| 172,699 |
| 138,100 |
| ||
Investing activities |
|
|
|
|
| ||
Capital expenditures on property and equipment |
| (17,872 | ) | (8,155 | ) | ||
Acquisitions of businesses, net of cash acquired |
| (62,985 | ) | (130,878 | ) | ||
Intangible assets acquired |
| — |
| (4,000 | ) | ||
Change in other assets |
| 818 |
| (5,721 | ) | ||
Settlements of forward contracts |
| 952 |
| — |
| ||
Sales and maturities of investments |
| — |
| 10,500 |
| ||
Proceeds from sales of assets |
| — |
| 140 |
| ||
Net cash used in investing activities |
| (79,087 | ) | (138,114 | ) | ||
Financing activities |
|
|
|
|
| ||
Proceeds from borrowings |
| 94,000 |
| 50,000 |
| ||
Repayment of borrowings |
| (113,266 | ) | (53,099 | ) | ||
Excess tax benefit from stock-based compensation |
| 9,796 |
| 1,509 |
| ||
Proceeds from the exercise of employee stock options |
| 2,044 |
| — |
| ||
Repurchases of common stock |
| (9,522 | ) | (56,886 | ) | ||
Net cash used in financing activities |
| (16,948 | ) | (58,476 | ) | ||
Foreign exchange impact on cash balance |
| 10,767 |
| (2,515 | ) | ||
Net increase (decrease) in cash and cash equivalents |
| 87,431 |
| (61,005 | ) | ||
Cash and cash equivalents at the beginning of the period |
| 31,040 |
| 148,484 |
| ||
Cash and cash equivalents at the end of the period |
| $ | 118,471 |
| $ | 87,479 |
|
8
IHS INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO
MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(In thousands)
|
| Three Months Ended August 31, |
| Nine Months Ended August 31, |
| ||||||||
|
| 2009 |
| 2008 |
| 2009 |
| 2008 |
| ||||
|
| (Unaudited) |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||||
Net income |
| $ | 34,706 |
| $ | 21,024 |
| $ | 93,764 |
| $ | 65,713 |
|
Interest income |
| (219 | ) | (754 | ) | (782 | ) | (2,668 | ) | ||||
Interest expense |
| 416 |
| 363 |
| 1,677 |
| 1,342 |
| ||||
Provision for income taxes |
| 11,313 |
| 4,585 |
| 29,218 |
| 25,609 |
| ||||
Depreciation and amortization |
| 12,771 |
| 9,675 |
| 36,031 |
| 28,181 |
| ||||
EBITDA |
| 58,987 |
| 34,893 |
| 159,908 |
| 118,177 |
| ||||
Stock-based compensation expense |
| 12,821 |
| 10,352 |
| 44,262 |
| 33,430 |
| ||||
Restructuring charge (credit) |
| — |
| 12,479 |
| (416 | ) | 12,479 |
| ||||
Gain on sales of assets, net |
| — |
| — |
| — |
| (119 | ) | ||||
Non-cash net periodic pension and post-retirement benefits |
| (1,002 | ) | (1,563 | ) | (3,004 | ) | (4,685 | ) | ||||
Income from equity investment (a) |
| — |
| (1,169 | ) | — |
| (2,213 | ) | ||||
50% of Lloyd’s Register-Fairplay’s adjusted |
| — |
| 2,167 |
| — |
| 4,189 |
| ||||
Adjusted EBITDA |
| $ | 70,806 |
| $ | 57,159 |
| $ | 200,750 |
| $ | 161,258 |
|
(a) Note: We acquired a 50% interest in Lloyd’s Register-Fairplay on March 3, 2008. From that point on for the remainder of 2008, Lloyd’s Register-Fairplay was accounted for using the equity method of accounting. We acquired a controlling interest in Lloyd’s Register-Fairplay during the first quarter of 2009. Consequently, beginning in the first quarter of 2009, we consolidated Lloyd’s Register-Fairplay; therefore, adjustments are not needed in 2009 because Lloyd’s Register-Fairplay’s results are already included in the consolidated 2009 results. We acquired the remaining interest of Lloyd’s Register-Fairplay that we did not previously own in the third quarter of 2009.
9
IHS INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO
MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(In thousands)
|
| Three Months Ended |
| ||||
|
| 2009 |
| 2008 |
| ||
|
| (Unaudited) |
| ||||
|
|
|
|
|
| ||
Americas |
| $ | 147,682 |
| $ | 128,936 |
|
EMEA |
| 72,606 |
| 64,665 |
| ||
APAC |
| 19,197 |
| 13,833 |
| ||
Shared Services |
| — |
| — |
| ||
Revenue |
| $ | 239,485 |
| $ | 207,434 |
|
|
|
|
|
|
| ||
Americas |
| $ | 48,539 |
| $ | 37,160 |
|
EMEA |
| 14,352 |
| 6,301 |
| ||
APAC |
| 6,261 |
| 4,167 |
| ||
Shared Services |
| (22,936 | ) | (23,537 | ) | ||
Operating income |
| $ | 46,216 |
| $ | 24,091 |
|
|
| Three Months Ended August 31, 2009 |
| |||||||||||||
|
| Americas |
| EMEA |
| APAC |
| Shared |
| Total |
| |||||
|
| (Unaudited) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating income |
| $ | 48,539 |
| $ | 14,352 |
| $ | 6,261 |
| $ | (22,936 | ) | $ | 46,216 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
| |||||
Stock-based compensation expense |
| — |
| — |
| — |
| 12,821 |
| 12,821 |
| |||||
Depreciation and amortization |
| 7,755 |
| 4,461 |
| 27 |
| 528 |
| 12,771 |
| |||||
Restructuring charge (credit) |
| — |
| — |
| — |
| — |
| — |
| |||||
Non-cash net periodic pension and post-retirement benefits |
| — |
| — |
| — |
| (1,002 | ) | (1,002 | ) | |||||
Adjusted EBITDA |
| $ | 56,294 |
| $ | 18,813 |
| $ | 6,288 |
| $ | (10,589 | ) | $ | 70,806 |
|
|
| Three Months Ended August 31, 2008 |
| |||||||||||||
|
| Americas |
| EMEA |
| APAC |
| Shared |
| Total |
| |||||
|
| (Unaudited) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating income |
| $ | 37,160 |
| $ | 6,301 |
| $ | 4,167 |
| $ | (23,537 | ) | $ | 24,091 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
| |||||
Stock-based compensation expense |
| — |
| — |
| — |
| 10,352 |
| 10,352 |
| |||||
Depreciation and amortization |
| 5,502 |
| 3,321 |
| 29 |
| 823 |
| 9,675 |
| |||||
Restructuring charge |
| 5,747 |
| 6,323 |
| 24 |
| 385 |
| 12,479 |
| |||||
Non-cash net periodic pension and post-retirement benefits |
| — |
| — |
| — |
| (1,563 | ) | (1,563 | ) | |||||
Minority interest |
| — |
| (42 | ) | — |
| — |
| (42 | ) | |||||
50% of Lloyd’s Register-Fairplay’s adjusted EBITDA |
| — |
| 2,167 |
| — |
| — |
| 2,167 |
| |||||
Adjusted EBITDA |
| $ | 48,409 |
| $ | 18,070 |
| $ | 4,220 |
| $ | (13,540 | ) | $ | 57,159 |
|
10
IHS INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(In thousands)
|
| Nine Months Ended |
| ||||
|
| 2009 |
| 2008 |
| ||
|
| (Unaudited) |
| ||||
|
|
|
|
|
| ||
Americas |
| $ | 444,668 |
| $ | 376,328 |
|
EMEA |
| 209,056 |
| 195,022 |
| ||
APAC |
| 56,448 |
| 42,054 |
| ||
Shared Services |
| — |
| — |
| ||
Revenue |
| $ | 710,172 |
| $ | 613,404 |
|
|
|
|
|
|
| ||
Americas |
| $ | 140,223 |
| $ | 115,164 |
|
EMEA |
| 40,909 |
| 28,705 |
| ||
APAC |
| 17,771 |
| 11,927 |
| ||
Shared Services |
| (72,882 | ) | (67,956 | ) | ||
Operating income |
| $ | 126,021 |
| $ | 87,840 |
|
|
| Nine Months Ended August 31, 2009 |
| |||||||||||||
|
| Americas |
| EMEA |
| APAC |
| Shared |
| Total |
| |||||
|
| (Unaudited) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating income |
| $ | 140,223 |
| $ | 40,909 |
| $ | 17,771 |
| $ | (72,882 | ) | $ | 126,021 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
| |||||
Stock-based compensation expense |
| — |
| — |
| — |
| 44,262 |
| 44,262 |
| |||||
Depreciation and amortization |
| 23,161 |
| 10,956 |
| 78 |
| 1,836 |
| 36,031 |
| |||||
Restructuring credit |
| (57 | ) | (111 | ) | — |
| (248 | ) | (416 | ) | |||||
Non-cash net periodic pension and post-retirement benefits |
| — |
| — |
| — |
| (3,004 | ) | (3,004 | ) | |||||
Minority interest |
| — |
| (2,144 | ) | — |
| — |
| (2,144 | ) | |||||
Adjusted EBITDA |
| $ | 163,327 |
| $ | 49,610 |
| $ | 17,849 |
| $ | (30,036 | ) | $ | 200,750 |
|
|
| Nine Months Ended August 31, 2008 |
| |||||||||||||
|
| Americas |
| EMEA |
| APAC |
| Shared Services |
| Total |
| |||||
|
| (Unaudited) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating income |
| $ | 115,164 |
| $ | 28,705 |
| $ | 11,927 |
| $ | (67,956 | ) | $ | 87,840 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
| |||||
Stock-based compensation expense |
| — |
| — |
| — |
| 33,430 |
| 33,430 |
| |||||
Depreciation and amortization |
| 15,780 |
| 10,008 |
| 101 |
| 2,292 |
| 28,181 |
| |||||
Restructuring charge |
| 5,747 |
| 6,323 |
| 24 |
| 385 |
| 12,479 |
| |||||
Gain on sales of assets, net |
| — |
| (119 | ) | — |
| — |
| (119 | ) | |||||
Non-cash net periodic pension and post-retirement benefits |
| — |
| — |
| — |
| (4,685 | ) | (4,685 | ) | |||||
Minority interest |
| — |
| (57 | ) | — |
| — |
| (57 | ) | |||||
50% of Lloyd’s Register-Fairplay’s adjusted EBITDA |
| — |
| 4,189 |
| — |
| — |
| 4,189 |
| |||||
Adjusted EBITDA |
| $ | 136,691 |
| $ | 49,049 |
| $ | 12,052 |
| $ | (36,534 | ) | $ | 161,258 |
|
11
IHS INC.
SUPPLEMENTAL INFORMATION
(In thousands, except per-share amounts)
|
| Three Months Ended August 31, |
| Nine Months Ended August 31, |
| ||||||||
|
| 2009 |
| 2008 |
| 2009 |
| 2008 |
| ||||
|
| (Unaudited) |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||||
Net cash provided by operating activities |
| $ | 56,420 |
| $ | 43,127 |
| $ | 172,699 |
| $ | 138,100 |
|
Capital expenditures on property and equipment |
| (8,744 | ) | (2,804 | ) | (17,872 | ) | (8,155 | ) | ||||
Free cash flow |
| $ | 47,676 |
| $ | 40,323 |
| $ | 154,827 |
| $ | 129,945 |
|
|
| Three Months Ended August 31, |
| ||||||||||
|
| 2009 |
| 2008 |
| ||||||||
|
| Pre-tax |
| After tax |
| Pre-tax |
| After tax |
| ||||
|
| (Unaudited) |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||||
Stock-based compensation expense |
| $ | 12,821 |
| $ | 8,079 |
| $ | 10,352 |
| $ | 6,522 |
|
Restructuring charge |
| $ | — |
| $ | — |
| $ | 12,479 |
| $ | 8,698 |
|
Non-cash net periodic pension and post-retirement benefits |
| $ | (1,002 | ) | $ | (620 | ) | $ | (1,563 | ) | $ | (969 | ) |
|
| Nine Months Ended August 31, |
| ||||||||||
|
| 2009 |
| 2008 |
| ||||||||
|
| Pre-tax |
| After tax |
| Pre-tax |
| After tax |
| ||||
|
| (Unaudited) |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||||
Stock-based compensation expense |
| $ | 44,262 |
| $ | 27,887 |
| $ | 33,430 |
| $ | 21,061 |
|
Restructuring charge |
| $ | (416 | ) | $ | (276 | ) | $ | 12,479 |
| $ | 8,698 |
|
Gain on sale of assets, net |
| $ | — |
| $ | — |
| $ | (119 | ) | $ | (74 | ) |
Non-cash net periodic pension and post-retirement benefits |
| $ | (3,004 | ) | $ | (1,861 | ) | $ | (4,685 | ) | $ | (2,905 | ) |
|
| Three Months Ended August 31, |
| Nine Months Ended August 31, |
| ||||||||
|
| 2009 |
| 2008 |
| 2009 |
| 2008 |
| ||||
|
| (Unaudited) |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||||
Earnings per diluted share |
| $ | 0.54 |
| $ | 0.33 |
| $ | 1.47 |
| $ | 1.04 |
|
Stock-based compensation expense |
| 0.13 |
| 0.10 |
| 0.44 |
| 0.33 |
| ||||
Restructuring charge |
| — |
| 0.14 |
| — |
| 0.14 |
| ||||
Gain on sale of assets, net |
| — |
| — |
| — |
| — |
| ||||
Non-cash net periodic pension and post-retirement benefits |
| (0.01 | ) | (0.02 | ) | (0.03 | ) | (0.05 | ) | ||||
Adjusted earnings per diluted share |
| $ | 0.66 |
| $ | 0.56 |
| $ | 1.87 |
| $ | 1.47 |
|
Note: amounts may not sum due to rounding.
12