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IHS Inc. Reports First Quarter 2010 Results

Posted by Dana in March 19th 2010

* EPS of $0.42 and Adjusted EPS of $0.62
* Adjusted EBITDA of $70.7 million

IHS Inc. (NYSE: IHS), a leading global source of critical information and insight, reported results for the first quarter ended February 28, 2010. Revenue for the first quarter of 2010 totaled $241 million, a two percent increase over first quarter 2009 revenue of $235 million. After adjusting for the shift in the CERAWeek executive conference from first quarter to second quarter, the year-over-year revenue increase was $13.7 million, or six percent. Net income for the first quarter of 2010 was $26.8 million, or $0.42 per diluted share, compared to first quarter 2009 net income of $27.1 million, or $0.43 per diluted share.

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) totaled $70.7 million for the first quarter of 2010, up 11 percent from $63.4 million in the first quarter of 2009. Operating income decreased $1.0 million, or three percent, to $36.7 million. Adjusted earnings per diluted share were $0.62 for the first quarter of 2010, an increase of seven percent over the prior-year period. After adjusting for the impact of the CERAWeek shift, adjusted EBIDTA, operating income, and adjusted earnings per diluted share grew 22 percent, 15 percent, and 20 percent, respectively. Adjusted EBITDA and adjusted earnings per share are non-GAAP (Generally Accepted Accounting Principles) financial measures used by management to measure operating performance.

First Quarter 2010 Details

All revenue growth amounts and rates discussed below have been adjusted as appropriate for the move of our annual CERAWeek executive conference from the first quarter in 2009 to the second quarter in 2010. Revenue for the first quarter of 2010 increased $13.7 million, or six percent, to $241 million. Organic revenue growth in the first quarter of 2010 was one percent overall, and four percent for the subscription-based portion of the business, which represented 81 percent of total revenue. Acquisitions contributed two percent of the increase, while foreign currency movements increased revenue three percent during the first quarter of 2010. The company continued to grow its business overall in all three regions. The Americas (North and South America) segment increased its revenue during the first quarter by $9.9 million, or seven percent, to $152 million. The EMEA (Europe, Middle East and Africa) segment grew its first quarter revenue by $1.8 million, or three percent, to $69.4 million. The APAC (Asia Pacific) segment’s revenue was up $1.9 million, or 11 percent, to $19.4 million.

Americas’ operating income increased $1.6 million, or four percent, to $46.7 million. EMEA’s operating income decreased $0.6 million, or five percent, to $13.4 million. APAC’s operating income grew $0.6 million, or 13 percent, to $5.6 million.

Cash Flows

IHS generated $55.4 million of cash flow from operations during the three months ended February 28, 2010, as compared to last year’s $38.6 million.

Balance Sheet

IHS ended the first quarter 2010 with $149 million of cash and cash equivalents, and $109 million of debt.