IHS Inc (1)IHS Inc. reported revenues of $582 million, up 4 percent from the prior-year period for its 4th Quarter ending November 30th 2014.  Total organic revenue growth of 4 percent, anchored by 6 percent subscription organic revenue growth.  Adjusted EBITDA was $186 million, up 10 percent from the prior-year period, resulting in a margin expansion of 170 basis points.  Adjusted earnings per diluted share (Adjusted EPS) amounted to $1.68, up 15 percent from the prior-year period.  Full-year free cash flow conversion of 74 percent.

“We were pleased to see organic growth that developed as we expected and outlined on last quarter’s call,” said Scott Key, IHS president and chief executive officer. “Our growth in the period was broad-based, reflecting our strategy of being the global multi-industry business information services leader.”  “Solid second-half margin expansion and full year cash flow demonstrates the fundamental operating leverage in our business model,” said Todd Hyatt, IHS chief financial officer. “These attributes continue to provide us with significant operational flexibility.”

Fiscal Year 2014 Revenues were US$ 2.23bn with an increase of 21 percent compared to 2013.

Segment Performance:  On a consolidated basis, IHS continued to deliver solid organic revenue growth. Segment results were as follows:

  • Americas:
    • Fourth quarter revenue for Americas increased $11 million, or 3 percent, to $380 million, and included 7 percent organic growth for the subscription-based business. Fourth quarter Adjusted EBITDA for Americas increased $9 million, or 7 percent, to $143 million. Fourth quarter operating income for Americas increased $4 million, or 5 percent, to $95 million.
    • Fiscal year 2014 revenue for Americas increased $308 million, or 26 percent, to $1.470 billion. Fiscal year 2014 Adjusted EBITDA for Americas increased $77 million, or 17 percent, to $535 million. Fiscal year 2014 operating income for Americas increased $53 million, or 17 percent, to $356 million.  Americas results for fiscal year 2014 benefited from the inclusion of R. L. Polk.
  • EMEA: 
    • Fourth quarter revenue for EMEA increased $7 million, or 5 percent, to $145 million, and included 5 percent organic growth for the subscription-based business. Fourth quarter Adjusted EBITDA for EMEA increased $5 million, or 12 percent, to $43 million. Fourth quarter operating income for EMEA increased $11 million, or 43 percent, to $36 million. EMEA profit benefited from revenue growth and prior investment in scaled infrastructure.
    • Fiscal year 2014 revenue for EMEA increased $66 million, or 14 percent, to $549 million. Fiscal year 2014 Adjusted EBITDA for EMEA increased $41 million, or 35 percent, to $156 million. Fiscal year 2014 operating income for EMEA increased $49 million, or 60 percent, to $130 million.
  • APAC:
    • Fourth quarter revenue for APAC increased $5 million, or 10 percent, to $57 million, and included 6 percent organic growth for the subscription-based business. Fourth quarter Adjusted EBITDA for APAC increased $2 million, or 18 percent, to $17 million. Fourth quarter operating income for APAC increased $2 million, or 16 percent, to $15 million.
    • Fiscal year 2014 revenue for APAC increased $17 million, or 9 percent, to $211 million. Fiscal year 2014 Adjusted EBITDA for APAC increased $9 million, or 20 percent, to $54 million. Fiscal year 2014 operating income for APAC increased $7 million, or 16 percent, to $49 million.

Source: Businesswire.com