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IHS Inc. Reports Fourth Quarter And Full Year 2012 Results

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.

                     

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  
 
 
               

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  
 
 
     

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  
 
 
                           

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  
 
 
               

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  
 
 
     

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
 
 
               

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 )




Stock quotes in this article: IHS 

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