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Actionable news in IHS: IHS Inc CLASS A,

IHS: Year Ended November 30, Change

689,804

54,273

GAAP EPS

Adjusted EPS including disc-ops

Cash flow from operations

115,978

85,649

30,329

612,639

628,099

(15,460

Free cash flow

90,745

54,510

36,235

489,718

513,646

(23,928

“We made strong progress in the second half of the year in increasing operational efficiency and effectiveness,” said Jerre Stead, IHS chairman and chief executive officer. “In addition, we made some very important changes to capital allocation, and the two acquisitions announced in the past several weeks are examples of execution against our new acquisition strategy.”

“We continue to deliver solid profit and margin expansion, with Adjusted EBITDA including disc-ops of $200 million for the quarter, up 7 percent versus a year ago, and full year margin expansion of 130 basis points,” said Todd Hyatt, IHS chief financial officer.

Fourth Quarter

and Full Year

Revenue Performance

The subscription-based business grew

3 percent

organically in the

fourth quarter

compared to the same period of

, as described in the following table.

Three months ended November 30,

Percent change

Year ended November 30,

(in thousands, except percentages)

Organic

Subscription revenue

448,216

424,768

1,768,541

1,643,844

Non-subscription revenue

107,490

116,364

415,794

435,943

Fourth quarter

revenue increased

5 percent

compared to the same period in

. The components of revenue growth are described below by segment and in total.

Change in revenue (excluding disc-ops)

Fourth quarter 2015 vs. fourth quarter 2014

2015 vs. 2014

(All amounts represent percentage points)

Acquisitive

Foreign

Currency

Resources

Transportation

Consolidated Markets & Solutions

Segment Performance

Segment results were as follows:

revenue for Resources decreased

$22 million

9 percent

$215 million

, and included negative

organic growth for the subscription-based business.

Adjusted EBITDA for Resources decreased

$6 million

6 percent

$91 million

operating income for Resources decreased

$19 million

25 percent

$57 million

Full year 2015 revenue for Resources decreased

$43 million

$885 million

. Full year 2015 Adjusted EBITDA for Resources decreased

$14 million

4 percent

$357 million

. Full year 2015 operating income for Resources decreased

$38 million

13 percent

$248 million

revenue for Transportation increased

$21 million

12 percent

$199 million

11 percent

Adjusted EBITDA for Transportation increased

$12 million

18 percent

$79 million

operating income for Transportation increased

$7 million

15 percent

$53 million

Full year 2015 revenue for Transportation increased

$96 million

14 percent

$758 million

. Full year 2015 Adjusted EBITDA for Transportation increased

$48 million

21 percent

$283 million

. Full year 2015 operating income for Transportation increased

$33 million

$194 million

Consolidated Markets & Solutions (CMS) excluding disc-ops.

revenue for CMS increased

$16 million

$142 million

Adjusted EBITDA for CMS increased

$11 million

45 percent

$34 million

operating income for CMS increased

42 percent

$20 million

Full year 2015 revenue for CMS increased

$51 million

10 percent

$541 million

. Full year 2015 Adjusted EBITDA for CMS increased

$107 million

. Full year 2015 operating income for CMS decreased

$3 million

$49 million

Outlook (forward-looking statement)

For the year ending November 30, 2016, excluding discontinued operations and including the acquisitions of CarProof and OPIS, IHS expects:

Revenue in a range of

$2.30 billion

$2.38 billion

, including 2-3 percent subscription organic growth, neutral non-subscription organic growth, and total organic growth of 0-3 percent;

Adjusted EBITDA in a range of

$770 million

$800 million

Adjusted EPS in a range of

per diluted share.

Additionally, for the year ending November 30, 2016, IHS expects:

Depreciation expense to be approximately

$100-105 million

Amortization expense related to acquired intangible assets to be approximately

$170-180 million

Net interest expense to be approximately

Stock-based compensation expense to be approximately

$120-130 million

An adjusted tax rate of approximately

27-28 percent

An effective tax rate of approximately

21-22 percent

Fully diluted shares to be approximately

68.5 million

Capital expenditures to be approximately 5 percent of revenue.

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

and fiscal year

results on

January 12, 2016

, 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 our financial statements based on U.S. generally accepted accounting principles (GAAP). Non-GAAP financial information is provided to enhance the reader’s understanding of our financial performance, but none of these non-GAAP financial measures are recognized terms under GAAP and non-GAAP measures should not 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 EBITDA, Adjusted EBITDA, Adjusted net income, Adjusted EPS, and free cash flow are provided within the schedules attached to this release.

We use non-GAAP measures in our operational and financial decision-making, believing that it is useful to exclude certain items in order to focus on what we deem 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, Adjusted net income, Adjusted EPS, and free cash flow metrics. We also believe 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.

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 we...


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