Quarterly revenue of $386 million, up 14%
5% organic revenue growth rate overall, including 8% for subscription-based business
Adjusted EBITDA of $121 million, up 21%, representing 31.4% of revenue for the quarter
EPS of $0.66, up 6%, and Adjusted EPS of $0.99, up 14%, for the quarter
ENGLEWOOD, Colo.--(BUSINESS WIRE)--Sep. 20, 2012-- IHS Inc. (NYSE: IHS), the leading global source of information and analytics, today reported results for the third quarter ended August 31, 2012. Revenue for the third quarter of 2012 totaled $386 million, a 14 percent increase over third quarter 2011 revenue of $339 million. Net income for the third quarter of 2012 was $44 million, or $0.66 per diluted share, compared to third quarter 2011 net income of $41 million, or $0.62 per diluted share.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) totaled $121 million for the third quarter of 2012, up 21 percent from $100 million in the third quarter of 2011. Adjusted earnings per diluted share were $0.99 for the third quarter of 2012, an increase of 14 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.
“Our growth remains well above economic growth rates in each of our end markets, but below our expectations,” said Jerre Stead, IHS chairman and chief executive officer. “Although our subscription business remained strong, growing at eight percent organically for the seventh consecutive quarter, our non-subscription business experienced weakness as customers put capital decisions on hold in these uncertain environments.”
Added Stead: “We continue to move quickly to deploy new systems and processes across every aspect of our business to capture scale efficiencies and to enhance the effectiveness of our global sales force. These important investments will enable us to provide future organic growth, margin expansion and increasing free cash flow as we realize related benefits over the next four quarters and into 2014.”
Third Quarter 2012 Details
Revenue for the third quarter of 2012 totaled $386 million, a 14 percent increase over third-quarter 2011 revenue of $339 million. The revenue increase was driven by five percent organic growth and 11 percent acquisitive growth, with a negative two percent foreign currency impact. The subscription-based business grew eight percent organically and represented 76 percent of total revenue.