Exhibit 99.1
NEWS RELEASE | ||
FOR IMMEDIATE RELEASE | ||
News Media Contact: | Investor Relations Contact: | |
David E. Pendery | Andy Schulz | |
IHS Inc. | IHS Inc. | |
+1 303 397 2468 | +1 303 397 2969 | |
david.pendery@ihs.com | andy.schulz@ihs.com |
IHS Inc. Reports Strong Fourth Quarter and Full Year 2009 Results
• | Highest reported fourth quarter and full year revenue and net income figures in company history |
• | Fourth quarter EPS of $0.64 and adjusted EPS of $0.75 |
• | Full year EPS of $2.11 and adjusted EPS of $2.62 |
ENGLEWOOD, Colo.(January 7, 2010) – IHS Inc. (NYSE: IHS), a leading global source of critical information and insight, today reported strong results for the fourth quarter and full year ended November 30, 2009. Revenue for the fourth quarter of 2009 totaled $257 million, an 11 percent increase over fourth quarter 2008 revenue of $231 million. Net income for the fourth quarter of 2009 was $41.2 million, or $0.64 per diluted share, compared to fourth quarter 2008 net income of $33.3 million, or $0.53 per diluted share. Revenue for fiscal year 2009 totaled $967 million, up 15 percent over the prior year total of $844 million. Net income for the full year 2009 was $135 million, or $2.11 per diluted share, compared to full year 2008 net income of $99.0 million, or $1.57 per diluted share.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) totaled $78.1 million for the fourth quarter of 2009, up 22 percent from $64.0 million in the fourth quarter of 2008. Adjusted earnings per diluted share were $0.75 for the fourth quarter of 2009, an increase of 29 percent over the prior-year period. Adjusted EBITDA for fiscal year 2009 totaled $279 million, up 24 percent from $225 million in 2008. Adjusted earnings per diluted share were $2.62 for fiscal 2009, an increase of 28 percent over the prior-year period. Adjusted EBITDA and adjusted earnings per share are non-GAAP (Generally Accepted Accounting Principles) financial measures used by management to measure operating performance. Please see the end of this release for more information about these non-GAAP measures.
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“A strong fourth quarter put an exclamation point on a remarkable 2009 for IHS,” said Jerre Stead, IHS chairman and chief executive officer. “Despite the challenging economy, we stay focused on providing our customers with the critical information and insight they need and were able to drive profitable growth as a result.”
Fourth Quarter 2009 Details
Revenue for the fourth quarter of 2009 totaled $257 million, an 11 percent increase over fourth-quarter 2009 revenue of $231 million. Organic revenue growth in the fourth quarter of 2009 was two percent overall and five percent for the subscription-based portion of the business, which represented 76 percent of total revenue. Acquisitions contributed nine percent of the increase, while foreign currency movements had a negligible impact on revenue during the fourth quarter of 2009. The company continued to grow its business overall in all three regions. The Americas (North and South America) segment increased its revenue during the fourth quarter by $13.4 million, or nine percent, to $158 million. The EMEA (Europe, Middle East and Africa) segment grew its fourth quarter revenue by $10.4 million, or 15 percent, to $78.8 million. The APAC (Asia Pacific) segment’s revenue was up $2.8 million, or 16 percent, to $20.4 million.
Adjusted EBITDA for the fourth quarter of 2009 was $78.1 million, up $14.0 million, or 22 percent, over the prior-year period. Operating income increased $8.1 million, or 18 percent, to $53.8 million. Americas’ operating income increased $5.9 million, or 13 percent, to $51.5 million. EMEA’s operating income was up $4.0 million, or 26 percent, to $19.6 million. APAC’s operating income grew $0.7 million, or 11 percent, to $6.9 million.
Full Year 2009
Revenue for fiscal year 2009 increased $123 million, or 15 percent, to $967 million. Organic revenue growth was three percent overall and nine percent for the subscription-based portion of the business. Acquisitions added 16 percent and foreign exchange movements reduced revenue by four percent during 2009. The Americas segment grew its revenue during fiscal 2009 by $81.7 million, or 16 percent, to $603 million. The EMEA segment increased its 2009 revenue by $24.4 million, or nine percent, to $288 million. The APAC segment increased its revenue by $17.2 million, or 29 percent, to $77 million, during 2009.
Adjusted EBITDA for fiscal 2009 increased $54 million, or 24 percent, to $279 million. Operating income increased $46.3 million, or 35 percent, year-over-year to $180 million. This increase was due in part to the inclusion of a $12.1 million restructuring charge in the prior year. Americas’ operating income was $192 million, up $31.0 million, or 19 percent, over the prior-year period (up 15 percent before the restructuring charge). EMEA grew its 2009 operating income to $60.5 million, up $16.2 million, or 37 percent, over 2008 (up 21 percent before the restructuring charge). APAC’s operating income was $24.7 million, an increase of $6.6 million, or 36 percent, over last year.
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Net income for fiscal year 2009 increased $36.0 million, or 36 percent, to $135 million, or $2.11 per diluted share.
Cash Flows
IHS generated $235 million of cash flow from operations during the year ended November 30, 2009, as compared to last year’s $189 million.
Balance Sheet
IHS ended fiscal year 2009 with $124 million of cash and cash equivalents, and $93 million of debt.
“It was good to see our overall organic growth rate stabilize while our profit growth and cash flow generation remained strong,” stated Michael J. Sullivan, IHS executive vice president and chief financial officer.
Share Repurchase Program
During the fourth quarter of 2009, IHS withheld 18,810 shares valued at approximately $1 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. Full year 2009 funding was $10.5 million on 229,060 shares.
Outlook (forward-looking statement)
For the year ending November 30, 2010, we expect:
• | All-in revenue in a range of $1.04 billion to $1.08 billion (8%—12% all-in growth from 2009 revenue of $967 million); and |
• | All-in adjusted EBITDA in a range of $312 million to $324 million (12%—16% all-in growth from 2009 adjusted EBITDA of $279 million). |
At the midpoint of our adjusted EBITDA guidance, we estimate $2.87 of adjusted earnings per share, based on a weighted average diluted share count of approximately 65 million.
For the year ending November 30, 2010, we also expect:
• | Stock-based compensation expense to be approximately $65 million; and |
• | Net pension expense to be in the range of $3-5 million. |
This above outlook includes 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 fourth quarter and full year 2009 results on January 7, 2010, 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 in 2008 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 (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
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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 atwww.sec.gov orwww.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 information 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 has been in business since 1959 and employs about 4,100 people in 28 countries.
IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. Copyright© 2010 IHS Inc. All rights reserved.
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IHS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per-share amounts)
November 30, | ||||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 124,201 | $ | 31,040 | ||||
Accounts receivable, net | 203,500 | 207,815 | ||||||
Deferred subscription costs | 40,279 | 35,948 | ||||||
Deferred income taxes | 30,970 | 28,801 | ||||||
Other | 14,284 | 14,213 | ||||||
Total current assets | 413,234 | 317,817 | ||||||
Non-current assets: | ||||||||
Property and equipment, net | 74,798 | 59,578 | ||||||
Equity investments in joint venture | — | 56,139 | ||||||
Intangible assets, net | 309,795 | 285,902 | ||||||
Goodwill, net | 875,742 | 705,077 | ||||||
Prepaid pension asset | — | 8,768 | ||||||
Other | 2,019 | 2,899 | ||||||
Total non-current assets | 1,262,354 | 1,118,363 | ||||||
Total assets | $ | 1,675,588 | $ | 1,436,180 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 92,577 | $ | 96,020 | ||||
Accounts payable | 26,470 | 35,084 | ||||||
Accrued compensation | 44,196 | 39,083 | ||||||
Accrued royalties | 25,666 | 24,769 | ||||||
Other accrued expenses | 39,385 | 58,831 | ||||||
Income tax payable | 1,720 | 3,994 | ||||||
Deferred subscription revenue | 319,163 | 288,145 | ||||||
Total current liabilities | 549,177 | 545,926 | ||||||
Long-term debt | 141 | — | ||||||
Accrued pension liability | 19,194 | 6,778 | ||||||
Accrued post-retirement benefits | 9,914 | 8,852 | ||||||
Deferred income taxes | 68,334 | 65,749 | ||||||
Other liabilities | 15,150 | 7,820 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Class A common stock, $0.01 par value per share, 80,000,000 shares authorized, | 648 | 641 | ||||||
Additional paid-in capital | 472,791 | 408,007 | ||||||
Treasury stock, at cost; 1,517,088 and 1,288,028 shares at November 30, 2009 and 2008, respectively | (75,112 | ) | (64,632 | ) | ||||
Retained earnings | 719,182 | 584,219 | ||||||
Accumulated other comprehensive loss | (103,831 | ) | (127,180 | ) | ||||
Total stockholders’ equity | 1,013,678 | 801,055 | ||||||
Total liabilities and stockholders’ equity | $ | 1,675,588 | $ | 1,436,180 | ||||
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IHS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share amounts)
Three Months Ended November 30, | Year Ended November 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Revenue: | ||||||||||||||||
Products | $ | 221,596 | $ | 197,994 | $ | 840,129 | $ | 722,311 | ||||||||
Services | 35,532 | 32,632 | 127,171 | 121,719 | ||||||||||||
Total revenue | 257,128 | 230,626 | 967,300 | 844,030 | ||||||||||||
Operating expenses: | ||||||||||||||||
Cost of revenue: | ||||||||||||||||
Products | 88,249 | 78,427 | 340,020 | 294,929 | ||||||||||||
Services | 19,188 | 20,623 | 69,996 | 77,802 | ||||||||||||
Total cost of revenue (includes stock-based compensation expense of | 107,437 | 99,050 | 410,016 | 372,731 | ||||||||||||
Selling, general and administrative (includes stock-based compensation | 84,095 | 77,678 | 332,518 | 295,523 | ||||||||||||
Depreciation and amortization | 13,115 | 11,229 | 49,146 | 39,410 | ||||||||||||
Restructuring charge (credit) | (319 | ) | (390 | ) | (735 | ) | 12,089 | |||||||||
Gain on sales of assets, net | (365 | ) | (209 | ) | (365 | ) | (328 | ) | ||||||||
Net periodic pension and post-retirement benefits | (627 | ) | (443 | ) | (2,684 | ) | (3,704 | ) | ||||||||
Other income, net | (3 | ) | (1,960 | ) | (412 | ) | (5,202 | ) | ||||||||
Total operating expenses | 203,333 | 184,955 | 787,484 | 710,519 | ||||||||||||
Operating income | 53,795 | 45,671 | 179,816 | 133,511 | ||||||||||||
Interest income | 306 | 494 | 1,088 | 3,162 | ||||||||||||
Interest expense | (540 | ) | (1,140 | ) | (2,217 | ) | (2,482 | ) | ||||||||
Non-operating (loss) income, net | (234 | ) | (646 | ) | (1,129 | ) | 680 | |||||||||
Income from continuing operations before income taxes, income from | 53,561 | 45,025 | 178,687 | 134,191 | ||||||||||||
Provision for income taxes | (12,362 | ) | (12,903 | ) | (41,580 | ) | (38,512 | ) | ||||||||
Income from continuing operations before income from equity | 41,199 | 32,122 | 137,107 | 95,679 | ||||||||||||
Income from equity investments | — | 1,114 | — | 3,327 | ||||||||||||
Minority interests | — | 44 | (2,144 | ) | (13 | ) | ||||||||||
Net income | $ | 41,199 | $ | 33,280 | $ | 134,963 | $ | 98,993 | ||||||||
Net income per share: | ||||||||||||||||
Basic (Class A common stock for 2009; Class A and Class B | $ | 0.65 | $ | 0.54 | $ | 2.14 | $ | 1.60 | ||||||||
Diluted (Class A common stock for 2009; Class A and Class B | $ | 0.64 | $ | 0.53 | $ | 2.11 | $ | 1.57 | ||||||||
Weighted average shares: | ||||||||||||||||
Basic (Class A common stock for 2009; Class A and Class B | 63,227 | 62,168 | 63,055 | 62,063 | ||||||||||||
Diluted (Class A common stock for 2009; Class A and Class B | 64,252 | 62,998 | 63,940 | 62,957 | ||||||||||||
*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.
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IHS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended November 30, | ||||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
Operating activities | ||||||||
Net income | $ | 134,963 | $ | 98,993 | ||||
Reconciliation of net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 49,146 | 39,410 | ||||||
Stock-based compensation expense | 57,112 | 39,972 | ||||||
Gain on sales of assets, net | (365 | ) | (328 | ) | ||||
Impairment of assets | — | 323 | ||||||
Excess tax benefit from stock-based compensation | (13,072 | ) | (3,952 | ) | ||||
Distributions from equity-method investment | — | 3,924 | ||||||
Non-cash net periodic pension and post-retirement benefits | (4,006 | ) | (5,551 | ) | ||||
Undistributed earnings of equity-method investments, net | — | (3,327 | ) | |||||
Minority interests | 497 | (202 | ) | |||||
Deferred income taxes | 18,272 | 4,833 | ||||||
Change in assets and liabilities: | ||||||||
Accounts receivable, net | 19,476 | (23,944 | ) | |||||
Other current assets | 205 | (1,314 | ) | |||||
Accounts payable | (13,280 | ) | (4,789 | ) | ||||
Accrued expenses | (13,334 | ) | 8,398 | |||||
Income taxes | (2,606 | ) | 325 | |||||
Deferred subscription revenue | 712 | 36,580 | ||||||
Other liabilities | 974 | (102 | ) | |||||
Net cash provided by operating activities | 234,694 | 189,249 | ||||||
Investing activities | ||||||||
Capital expenditures on property and equipment | (27,739 | ) | (13,885 | ) | ||||
Acquisitions of businesses, net of cash acquired | (125,379 | ) | (272,844 | ) | ||||
Intangible assets acquired | (5,300 | ) | (4,000 | ) | ||||
Change in other assets | 1,501 | (3,979 | ) | |||||
Settlements of forward contracts | 830 | (881 | ) | |||||
Sales and maturities of investments | — | 10,500 | ||||||
Proceeds from sales of assets and investment in affiliate | 2,049 | 140 | ||||||
Net cash used in investing activities | (154,038 | ) | (284,949 | ) | ||||
Financing activities | ||||||||
Proceeds from borrowings | 179,000 | 160,000 | ||||||
Repayment of borrowings | (183,297 | ) | (83,099 | ) | ||||
Excess tax benefit from stock-based compensation | 13,072 | 3,952 | ||||||
Proceeds from the exercise of employee stock options | 2,112 | — | ||||||
Repurchases of common stock | (10,480 | ) | (84,362 | ) | ||||
Net cash provided by (used in) financing activities | 407 | (3,509 | ) | |||||
Foreign exchange impact on cash balance | 12,098 | (18,235 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 93,161 | (117,444 | ) | |||||
Cash and cash equivalents at the beginning of the period | 31,040 | 148,484 | ||||||
Cash and cash equivalents at the end of the period | $ | 124,201 | $ | 31,040 | ||||
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IHS INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO
MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(In thousands)
Three Months Ended November 30, | Year Ended November 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(Unaudited) | ||||||||||||||||
Net income | $ | 41,199 | $ | 33,280 | $ | 134,963 | $ | 98,993 | ||||||||
Interest income | (306 | ) | (494 | ) | (1,088 | ) | (3,162 | ) | ||||||||
Interest expense | 540 | 1,140 | 2,217 | 2,482 | ||||||||||||
Provision for income taxes | 12,362 | 12,903 | 41,580 | 38,512 | ||||||||||||
Depreciation and amortization | 13,115 | 11,229 | 49,146 | 39,410 | ||||||||||||
EBITDA | 66,910 | 58,058 | 226,818 | 176,235 | ||||||||||||
Stock-based compensation expense | 12,850 | 6,542 | 57,112 | 39,972 | ||||||||||||
Restructuring charge (credit) | (319 | ) | (390 | ) | (735 | ) | 12,089 | |||||||||
Gain on sales of assets, net | (365 | ) | (209 | ) | (365 | ) | (328 | ) | ||||||||
Non-cash net periodic pension and post-retirement benefits | (1,002 | ) | (866 | ) | (4,006 | ) | (5,551 | ) | ||||||||
Income from equity investment(a) | — | (1,114 | ) | — | (3,327 | ) | ||||||||||
50% of Lloyd’s Register-Fairplay’s adjusted EBITDA(a) | — | 2,012 | — | 6,201 | ||||||||||||
Adjusted EBITDA | $ | 78,074 | $ | 64,033 | $ | 278,824 | $ | 225,291 | ||||||||
(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.
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IHS INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO
MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(In thousands)
Three Months Ended November 30, | ||||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
Americas | $ | 157,973 | $ | 144,597 | ||||
EMEA | 78,799 | 68,435 | ||||||
APAC | 20,356 | 17,594 | ||||||
Shared Services | — | — | ||||||
Revenue | $ | 257,128 | $ | 230,626 | ||||
Americas | $ | 51,531 | $ | 45,593 | ||||
EMEA | 19,597 | 15,553 | ||||||
APAC | 6,879 | 6,171 | ||||||
Shared Services | (24,212 | ) | (21,646 | ) | ||||
Operating income | $ | 53,795 | $ | 45,671 | ||||
Three Months Ended November 30, 2009 | |||||||||||||||||||
Americas | EMEA | APAC | Shared Services | Total | |||||||||||||||
(Unaudited) | |||||||||||||||||||
Operating income | $ | 51,531 | $ | 19,597 | $ | 6,879 | $ | (24,212 | ) | $ | 53,795 | ||||||||
Adjustments: | |||||||||||||||||||
Stock-based compensation expense | — | — | — | 12,850 | 12,850 | ||||||||||||||
Depreciation and amortization | 8,589 | 3,971 | 37 | 518 | 13,115 | ||||||||||||||
Restructuring charge (credit) | (70 | ) | (25 | ) | — | (224 | ) | (319 | ) | ||||||||||
Gain on sales of assets, net | (147 | ) | (218 | ) | — | — | (365 | ) | |||||||||||
Non-cash net periodic pension and post-retirement benefits | — | — | — | (1,002 | ) | (1,002 | ) | ||||||||||||
Adjusted EBITDA | $ | 59,903 | $ | 23,325 | $ | 6,916 | $ | (12,070 | ) | $ | 78,074 | ||||||||
Three Months Ended November 30, 2008 | |||||||||||||||||||
Americas | EMEA | APAC | Corporate | Total | |||||||||||||||
(Unaudited) | |||||||||||||||||||
Operating income | $ | 45,593 | $ | 15,553 | $ | 6,171 | $ | (21,646 | ) | $ | 45,671 | ||||||||
Adjustments: | |||||||||||||||||||
Stock-based compensation expense | — | — | — | 6,542 | 6,542 | ||||||||||||||
Depreciation and amortization | 7,407 | 2,989 | 31 | 802 | 11,229 | ||||||||||||||
Restructuring charge (credit) | (15 | ) | (378 | ) | — | 3 | (390 | ) | |||||||||||
Gain on sales of assets, net | — | (209 | ) | — | — | (209 | ) | ||||||||||||
Non-cash net periodic pension and post-retirement benefits | — | — | — | (866 | ) | (866 | ) | ||||||||||||
Minority interest | — | 44 | — | — | 44 | ||||||||||||||
50% of Lloyd’s-Register Fairplay’s adjusted EBITDA | — | 2,012 | — | — | 2,012 | ||||||||||||||
Adjusted EBITDA | $ | 52,985 | $ | 20,011 | $ | 6,202 | $ | (15,165 | ) | $ | 64,033 | ||||||||
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IHS INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO
MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(In thousands)
Year Ended November 30, | ||||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
Americas | $ | 602,641 | $ | 520,925 | ||||
EMEA | 287,855 | 263,457 | ||||||
APAC | 76,804 | 59,648 | ||||||
Shared Services | — | — | ||||||
Revenue | $ | 967,300 | $ | 844,030 | ||||
Americas | $ | 191,754 | $ | 160,757 | ||||
EMEA | 60,506 | 44,258 | ||||||
APAC | 24,650 | 18,098 | ||||||
Shared Services | (97,094 | ) | (89,602 | ) | ||||
Operating income | $ | 179,816 | $ | 133,511 | ||||
Year Ended November 30, 2009 | |||||||||||||||||||
Americas | EMEA | APAC | Shared Services | Total | |||||||||||||||
(Unaudited) | |||||||||||||||||||
Operating income | $ | 191,754 | $ | 60,506 | $ | 24,650 | $ | (97,094 | ) | $ | 179,816 | ||||||||
Adjustments: | |||||||||||||||||||
Stock-based compensation expense | — | — | — | 57,112 | 57,112 | ||||||||||||||
Depreciation and amortization | 31,750 | 14,927 | 115 | 2,354 | 49,146 | ||||||||||||||
Restructuring credit | (127 | ) | (136 | ) | — | (472 | ) | (735 | ) | ||||||||||
Gain on sales of assets, net | (147 | ) | (218 | ) | — | — | (365 | ) | |||||||||||
Non-cash net periodic pension and post-retirement benefits | — | — | — | (4,006 | ) | (4,006 | ) | ||||||||||||
Minority interest | — | (2,144 | ) | — | —�� | (2,144 | ) | ||||||||||||
Adjusted EBITDA | $ | 223,230 | $ | 72,935 | $ | 24,765 | $ | (42,106 | ) | $ | 278,824 | ||||||||
Year Ended November 30, 2008 | ||||||||||||||||||
Americas | EMEA | APAC | Corporate | Total | ||||||||||||||
(Unaudited) | ||||||||||||||||||
Operating income | $ | 160,757 | $ | 44,258 | $ | 18,098 | $ | (89,602 | ) | $ | 133,511 | |||||||
Adjustments: | ||||||||||||||||||
Stock-based compensation expense | — | — | — | 39,972 | 39,972 | |||||||||||||
Depreciation and amortization | 23,187 | 12,997 | 132 | 3,094 | 39,410 | |||||||||||||
Restructuring charge | 5,732 | 5,945 | 24 | 388 | 12,089 | |||||||||||||
Gain on sales of assets, net | — | (328 | ) | — | — | (328 | ) | |||||||||||
Non-cash net periodic pension and post-retirement benefits | — | — | — | (5,551 | ) | (5,551 | ) | |||||||||||
Minority interest | — | (13 | ) | — | — | (13 | ) | |||||||||||
50% of Lloyd’s-Register Fairplay’s adjusted EBITDA | — | 6,201 | — | — | 6,201 | |||||||||||||
Adjusted EBITDA | $ | 189,676 | $ | 69,060 | $ | 18,254 | $ | (51,699 | ) | $ | 225,291 | |||||||
11
IHS INC.
SUPPLEMENTAL INFORMATION
(In thousands, except per-share amounts)
Three Months Ended November 30, | Year Ended November 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(Unaudited) | ||||||||||||||||
Net cash provided by operating activities | $ | 61,995 | $ | 51,149 | $ | 234,694 | $ | 189,249 | ||||||||
Capital expenditures on property and equipment | (9,867 | ) | (5,730 | ) | (27,739 | ) | (13,885 | ) | ||||||||
Free cash flow | $ | 52,128 | $ | 45,419 | $ | 206,955 | $ | 175,364 | ||||||||
Three Months Ended November 30, | ||||||||||||||||
2009 | 2008 | |||||||||||||||
Pre-tax | After tax | Pre-tax | After tax | |||||||||||||
(Unaudited) | ||||||||||||||||
Stock-based compensation expense | $ | 12,850 | $ | 8,094 | $ | 6,542 | $ | 4,121 | ||||||||
Restructuring credit | $ | (319 | ) | $ | (202 | ) | $ | (390 | ) | $ | (413 | ) | ||||
Gain on sale of assets, net | $ | (365 | ) | $ | (309 | ) | $ | (209 | ) | $ | (164 | ) | ||||
Non-cash net periodic pension and post-retirement benefits | $ | (1,002 | ) | $ | (622 | ) | $ | (866 | ) | $ | (536 | ) | ||||
Year Ended November 30, | ||||||||||||||||
2009 | 2008 | |||||||||||||||
Pre-tax | After tax | Pre-tax | After tax | |||||||||||||
(Unaudited) | ||||||||||||||||
Stock-based compensation expense | $ | 57,112 | $ | 35,981 | $ | 39,972 | $ | 25,182 | ||||||||
Restructuring charge / (credit) | $ | (735 | ) | $ | (478 | ) | $ | 12,089 | $ | 8,285 | ||||||
Gain on sale of assets, net | $ | (365 | ) | $ | (309 | ) | $ | (328 | ) | $ | (238 | ) | ||||
Non-cash net periodic pension and post-retirement benefits | $ | (4,006 | ) | $ | (2,483 | ) | $ | (5,551 | ) | $ | (3,441 | ) | ||||
Three Months Ended November 30, | Year Ended November 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(Unaudited) | ||||||||||||||||
Earnings per diluted share | $ | 0.64 | $ | 0.53 | $ | 2.11 | $ | 1.57 | ||||||||
Stock-based compensation expense | 0.13 | 0.07 | 0.56 | 0.40 | ||||||||||||
Restructuring charge/(credit) | — | (0.01 | ) | (0.01 | ) | 0.13 | ||||||||||
Gain on sale of assets, net | — | — | — | — | ||||||||||||
Non-cash net periodic pension and post-retirement benefits | (0.01 | ) | (0.01 | ) | (0.04 | ) | (0.05 | ) | ||||||||
Adjusted earnings per diluted share | $ | 0.75 | $ | 0.58 | $ | 2.62 | $ | 2.05 | ||||||||
Note: amounts may not sum due to rounding.
12