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IHS Markit Reaffirms 2018 Guidance, Provides 2019 Guidance

IHS Markit 2019 Guidance Call - Supplemental Materials - Click here for PDF

LONDON--(BUSINESS WIRE)--Nov. 8, 2018-- IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions, today announced it is reaffirming its 2018 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, 2019.

Outlook (forward-looking statement)

For the year ending November 30, 2018, IHS Markit expects:

  • Revenue in a range of $4.000 billion to $4.020 billion, including total organic growth of 6 percent;
  • Adjusted EBITDA in a range of $1.55 billion to $1.56 billion; and
  • Adjusted EPS in a range of $2.25 to $2.27 per diluted share.

For the year ending November 30, 2019, IHS Markit expects:

  • Revenue in a range of $4.425 billion to $4.500 billion, with total organic growth of 5 percent to 6 percent including Ipreo for the 4 month stub period, and total organic growth of 6 percent to 7 percent including Ipreo for the full 12 months;
  • Adjusted EBITDA in a range of $1.75 billion to $1.78 billion; and
  • Adjusted EPS in a range of $2.52 to $2.57 per diluted share.

Additionally, for the year ending November 30, 2019, IHS Markit expects:

  • Depreciation expense to be approximately $220 million to $225 million;
  • Net interest expense to be approximately $245 million to $250 million;
  • Amortization expense related to acquired intangible assets to be approximately $370 million to $380 million;
  • Stock-based compensation expense to be approximately $215 million to $225 million;
  • A GAAP effective tax rate of approximately 14 percent to 16 percent;
  • An adjusted effective tax rate of approximately 18 percent to 20 percent;
  • Weighted average diluted shares of approximately 410 million to 415 million;
  • Capital expenditures to be approximately 6.0 percent to 6.5 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 Thursday, November 8, 2018 at 8:00 a.m. EST. The conference call will be simultaneously webcast on the Investor Relations section of the company's website: investor.ihsmarkit.com.

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," "could," "target," similar expressions, and variations or negatives of these words and the use of future tense. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, estimates 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, including subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. However, those risk factors should not be considered to be a complete statement of all potential risks and uncertainties. Other factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on our consolidated financial condition, results of operations, credit rating or liquidity. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication. 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 solutions 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 business and government customers, including 80 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 and/or its affiliates. All other company and product names may be trademarks of their respective owners © 2018 IHS Markit Ltd. All rights reserved.

Source: IHS Markit

IHS Markit
Investor Relations Contact:
Eric Boyer, +1 303-397-2969
eric.boyer@ihsmarkit.com