IHS Markit (Nasdaq: INFO), a world leader in critical
information, analytics and expertise, today announced it is
reaffirming its 2017 revenue, Adjusted EBITDA (Earnings Before
Interest, Taxes, Depreciation and Amortization) and Adjusted
earnings per diluted share (Adjusted EPS) guidance as well as
providing its financial guidance for the year ending November 30,
2018.
Outlook (forward-looking statement)
For the year ending November 30, 2017, IHS Markit expects:
- Revenue trending modestly above the
high end of the range of $3.490 billion to $3.560 billion, plus an
additional $10 million for automotiveMastermind;
- Total organic revenue growth of 3
percent to 4 percent;
- Adjusted EBITDA trending at the
mid-point of the range of $1.375 billion to $1.400 billion;
and
- Adjusted EPS trending at the mid-point
of the range of $2.02 to $2.08 per diluted share.
For the year ending November 30, 2018, IHS Markit expects:
- Revenue in a range of $3.770 billion to
$3.830 billion, including total organic growth of 4 percent to 5
percent;
- Adjusted EBITDA in a range of $1.500
billion to $1.525 billion; and
- Adjusted EPS in a range of $2.17 to
$2.23 per diluted share.
Additionally, for the year ending November 30, 2018, IHS Markit
expects:
- Depreciation expense to be
approximately $180 million to $190 million;
- Net interest expense to be
approximately $180 million to $190 million;
- Amortization expense related to
acquired intangible assets to be approximately $340 million to $350
million;
- Stock-based compensation expense to be
approximately $200 million to $220 million;
- A GAAP effective tax rate of
approximately 10 percent to 15 percent;
- An adjusted effective tax rate of
approximately 20 percent to 23 percent;
- Weighted average diluted shares of
approximately 405 million to 410 million;
- Capital expenditures to be
approximately 6 percent to 7 percent of revenue; and
- Free cash flow conversion as a
percentage of Adjusted EBITDA in the mid-60’s.
For additional information, see the related presentation
materials posted to the company’s website at
investor.ihsmarkit.com.
The above outlook assumes no further currency movements,
acquisitions, divestitures, pension mark-to-market adjustments or
unanticipated events. See discussion of non-GAAP financial measures
at the end of this release.
As previously announced, IHS Markit will hold a conference call
and webcast to discuss this guidance on Monday, November 13,
2017 at 4:30 p.m. EST. The conference call will be simultaneously
webcast on the Investor Relations section of the company’s website:
investor.ihsmarkit.com.
The company also plans to discuss this guidance in a previously
announced presentation at the J.P. Morgan Ultimate Services
Investor Conference in New York City tomorrow, November 14, 2017.
The event is scheduled for 8:15 a.m. EST.
Use of Non-GAAP Financial Measures
Non-GAAP results are presented only as a supplement to our
financial statements based on U.S. generally accepted accounting
principles (GAAP). Non-GAAP financial information is provided to
enhance the reader’s understanding of our financial performance,
but none of these non-GAAP financial measures are recognized terms
under GAAP and non-GAAP measures should not be considered in
isolation or as a substitute for financial measures calculated in
accordance with GAAP. Definitions of non-GAAP measures such as
EBITDA, Adjusted EBITDA, Adjusted net income, Adjusted EPS, and
free cash flow, and reconciliations of historical non-GAAP measures
to the most directly comparable GAAP measures, are provided within
the schedules attached to IHS Markit’s quarterly earnings releases
on the Investor Relations section of the company’s website. This
communication also includes certain forward-looking non-GAAP
financial measures. IHS Markit is unable to present a
reconciliation of this forward-looking non-GAAP financial
information without unreasonable effort because management cannot
reliably predict all of the necessary components of such measures
aside from those components described above in this release.
Accordingly, investors are cautioned not to place undue reliance on
this information.
We use non-GAAP measures in our operational and financial
decision-making, believing that it is useful to exclude certain
items in order to focus on what we deem to be a more reliable
indicator of ongoing operating performance and our ability to
generate cash flow from operations. As a result, internal
management reports used during monthly operating reviews feature
the Adjusted EBITDA, Adjusted net income, Adjusted EPS, and free
cash flow metrics. We also believe that investors may find non-GAAP
financial measures useful for the same reasons, although investors
are cautioned that non-GAAP financial measures are not a substitute
for GAAP disclosures.
Non-GAAP measures are frequently used by securities analysts,
investors, and other interested parties in their evaluation of
companies comparable to IHS Markit, many of which present non-GAAP
measures when reporting their results. These measures can be useful
in evaluating our performance against our peer companies because we
believe the measures provide users with valuable insight into key
components of GAAP financial disclosures. However, non-GAAP
measures have limitations as an analytical tool. Non-GAAP measures
are not necessarily comparable to similarly titled measures used by
other companies. They are not presentations made in accordance with
GAAP, are not measures of financial condition or liquidity, and
should not be considered as an alternative to profit or loss for
the period determined in accordance with GAAP or operating cash
flows determined in accordance with GAAP. As a result, you should
not consider such performance measures in isolation from, or as a
substitute analysis for, results of operations as determined in
accordance with GAAP.
Forward-Looking Statements
This communication contains "forward-looking statements" within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. In this context,
forward-looking statements often address expected future business
and financial performance and financial condition, and often
contain words such as "anticipate," "intend," "plan," "goal,"
"seek," "aim," "strive," "believe," "see," "project," "predict,"
"estimate," "expect," "continue," "strategy," "future," "likely,"
"may," "might," "should," "will," "would," "target," similar
expressions, and variations or negatives of these words.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations, and assumptions regarding the
future of our business, future plans and strategies, projections,
anticipated events and trends, the economy, and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks, and
changes in circumstances that are difficult to predict and many of
which are outside of our control. A detailed discussion of some of
the risks and uncertainties that could cause our actual results and
financial condition to differ materially from the forward-looking
statements is described under the caption "Risk Factors" in our
most recent annual report on Form 10-K, along with our other
filings with the U.S. Securities and Exchange Commission. Any
forward-looking statement made by us in this communication is based
only on information currently available to us and speaks only as of
the date of this communication. We do not assume any obligation to
publicly provide revisions or updates to any forward-looking
statements, whether as a result of new information, future
developments or otherwise, should circumstances change, except as
otherwise required by securities and other applicable laws. Please
consult our public filings at www.sec.gov or www.ihsmarkit.com.
About IHS Markit
IHS Markit (Nasdaq: INFO) is a world leader in critical
information, analytics and expertise for the major industries and
markets that drive economies worldwide. The company delivers
next-generation information, analytics and solutions to customers
in business, finance and government, improving their operational
efficiency and providing deep insights that lead to well-informed,
confident decisions. IHS Markit has more than 50,000 key
business and government customers, including 85 percent of the
Fortune Global 500 and the world's leading financial institutions.
Headquartered in London, IHS Markit is committed to
sustainable, profitable growth.
IHS Markit is a registered trademark of IHS Markit
Ltd. All other company and product names may be trademarks of
their respective owners © 2017 IHS Markit Ltd. All rights
reserved.
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version on businesswire.com: http://www.businesswire.com/news/home/20171113006237/en/
IHS MarkitNews Media Contact:Dan Wilinsky, +1
303-397-2468dan.wilinsky@ihsmarkit.comorInvestor Relations
Contact:Eric Boyer, +1 303-397-2969eric.boyer@ihsmarkit.com
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