Market research iStock_000025054738SmallIHS Inc. (NYSE: IHS) reported third quarter revenues of $556 million, up 16 percent from the prior-year period (3rd quarter ending August 31st).  Total organic revenue growth of 5 percent, as normalized, anchored by 6 percent subscription organic revenue growth.  Adjusted EBITDA of $174 million, up 21 percent from the prior-year period.  Free cash flow of $135 million, up 124 percent from the prior-year period.

Segment Results:

  • Americas: Third quarter revenue increased $56 million, or 18 percent, to $363 million, and included 5 percent organic growth for the subscription-based business. Third quarter Adjusted EBITDA for Americas increased $11 million, or 9 percent, to $134 million. Third quarter operating income for Americas increased $19 million, or 26 percent, to $90 million.  Year-to-date revenue for Americas increased $297 million, or 37 percent, to $1.091 billion. Year-to-date Adjusted EBITDA for Americas increased $68 million, or 21 percent, to $392 million. Year-to-date operating income for Americas increased $48 million, or 23 percent, to $261 million.  Americas results for both the third quarter and year-to-date 2014 periods benefited from the inclusion of R. L. Polk.
  • EMEA: Third quarter revenue increased $16 million, or 13 percent, to $138 million, and included 8 percent organic growth for the subscription-based business.  Third quarter Adjusted EBITDA for EMEA increased $15 million, or 56 percent, to $41 million. Third quarter operating income for EMEA increased $15 million, or 78 percent, to $35 million. EMEA profit benefited from revenue growth and prior investment in scaled infrastructure. Year-to-date revenue for EMEA increased $59 million, or 17 percent, to $404 million. Year-to-date Adjusted EBITDA for EMEA increased $36 million, or 47 percent, to $113 million. Year-to-date operating income for EMEA increased $38 million, or 67 percent, to $94 million.
  • APAC: Third quarter revenue increased $4 million, or 7 percent, to $54 million, and included 6 percent organic growth for the subscription-based business. Third quarter Adjusted EBITDA for APAC increased $3 million, or 30 percent, to $13 million. Third quarter operating income for APAC increased $2 million, or 18 percent, to $11 million. Year-to-date revenue for APAC increased $12 million, or 8 percent, to $154 million. Year-to-date Adjusted EBITDA for APAC increased $6 million, or 21 percent, to $37 million. Year-to-date operating income for APAC increased $5 million, or 16 percent, to $34 million.

Outlook (forward-looking statement):  For the year ending November 30, 2014, IHS expects revenue in a range of $2.225 billion to $2.235 billion, including 6 percent organic growth on the subscription base and adjusted EBITDA in a range of $685 million to $695 million.

Source:  IHS Earnings Release