IHS Markit Reports Fourth Quarter 2021 Results

LONDON--(BUSINESS WIRE)--IHS Markit (NYSE: INFO), a world leader in critical information, analytics and solutions, today reported results for the fourth quarter ended November 30, 2021. Revenue of $1.176 billion, with 10 percent total organic revenue growth Net income of $737 million and diluted earnings per share (EPS) of $1.83 Adjusted EBITDA of $531 million and Adjusted earnings per diluted share (Adjusted EPS) of $0.85 Cash flow from operations of $449 million and free cash flow of $375 million Adjusted EBITDA, Adjusted EPS, and free cash flow are non-GAAP financial measures used by management to measure operating performance. These terms are defined elsewhere in this release. Please see schedules appearing later in this release for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures. Fourth Quarter 2021 Financial Performance Three months ended November 30, Change Year ended November 30, Change (in millions, except percentages and per share data) 2021 2020 $ % 2021 2020 $ % Revenue $ 1,176.3 $ 1,107.2 $ 69.1 6 % $ 4,658.1 $ 4,287.8 $ 370.3 9 % Net income attributable to IHS Markit* $ 737.2 $ 151.1 $ 586.1 388 % $ 1,206.8 $ 870.7 $ 336.1 39 % Adjusted EBITDA $ 530.5 $ 464.9 $ 65.6 14 % $ 2,030.3 $ 1,836.7 $ 193.6 11 % GAAP EPS $ 1.83 $ 0.38 $ 1.45 382 % $ 3.01 $ 2.17 $ 0.84 39 % Adjusted EPS $ 0.85 $ 0.72 $ 0.13 18 % $ 3.21 $ 2.84 $ 0.37 13 % Cash flow from operations $ 449.0 $ 338.3 $ 110.7 33 % $ 1,486.2 $ 1,138.8 $ 347.4 31 % Free cash flow $ 374.7 $ 275.3 $ 99.4 36 % $ 1,191.9 $ 939.9 $ 252.0 27 % * Net income attributable to IHS Markit for the three months and year ended November 30, 2021 includes an approximate $489 million gain on sale related to the MarkitSERV business line divestiture in September 2021. Net income attributable to IHS Markit for the year ended November 30, 2020 includes an approximate $377 million gain on sale related to the A&D business line divestiture in December 2019. “We had a great close to the year and had record organic revenue growth for both the quarter and the year. We entered FY22 with strong momentum across our businesses, which sets us up well for the year. As we continue to expect the merger with S&P Global to close in calendar Q1, I want to thank our colleagues, customers, and shareholders for their support over the years. I look forward to cheering for the combined IHS Markit and S&P Global in the years to come,” said Lance Uggla, chairman and chief executive officer at IHS Markit. “Q4 was a strong finish to a great year for IHS Markit. I want to thank our teams for maintaining their focus and delivering such strong results while continuing to manage to the merger with S&P Global,” said Jonathan Gear, chief financial officer at IHS Markit. Fourth Quarter 2021 Revenue Performance Fourth quarter 2021 revenue increased 10 percent organically compared to the fourth quarter of 2020. The following table provides additional revenue information by transaction type. Three months ended November 30, Percentage change (in millions, except percentages) 2021 2020 Total Organic Recurring fixed $ 874.1 $ 809.7 8 % 8 % Recurring variable 144.4 158.5 (9 )% 11 % Non-recurring 157.8 139.0 14 % 15 % Total revenue $ 1,176.3 $ 1,107.2 6 % 10 % The components of revenue growth are described below by segment and in total. Change in revenue Fourth quarter 2021 vs. Fourth quarter 2020 (All amounts represent percentage points) Organic Acquisitive Foreign Currency Total Financial Services 12 % (9 ) % — % 3 % Transportation 12 % — % — % 12 % Resources 2 % — % — % 2 % Consolidated Markets & Solutions 10 % (1 ) % — % 9 % Total 10 % (4 ) % — % 6 % Fourth Quarter 2021 Operating Performance Segment results were as follows (additional segment information is included later in this release): Financial Services. Fourth quarter revenue for Financial Services increased $14 million, or 3 percent, to $473 million, and included 12 percent total organic growth. Fourth quarter Adjusted EBITDA for Financial Services increased $27 million, or 12 percent, to $251 million. Transportation. Fourth quarter revenue for Transportation increased $39 million, or 12 percent, to $351 million, and included 12 percent total organic growth. Fourth quarter Adjusted EBITDA for Transportation increased $19 million, or 13 percent, to $161 million. Resources. Fourth quarter revenue for Resources increased $5 million, or 2 percent, to $215 million, with a 2 percent total organic increase. Fourth quarter Adjusted EBITDA for Resources increased $6 million, or 7 percent, to $90 million. Consolidated Markets & Solutions (CMS). Fourth quarter revenue for CMS increased $11 million, or 9 percent, to $137 million, and included 10 percent total organic growth. Fourth quarter Adjusted EBITDA for CMS increased $7 million, or 24 percent, to $39 million. 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 should not be considered in isolation from, or as a substitute for, financial measures calculated in accordance with GAAP. Definitions and reconciliations of the non-GAAP measures, such as EBITDA, Adjusted EBITDA, Adjusted net income, Adjusted EPS, and free cash flow, 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 because management cannot reliably predict all of the necessary components of such measures. Accordingly, investors are cautioned not to place undue reliance on this information. We use non-GAAP measures in our operational and financial decision-making. We believe that such measures allow us 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. We also believe that investors may find these non-GAAP financial measures useful for the same reasons, although investors are cautioned that non-GAAP financial measures are not a substitute for GAAP financial measures or disclosures. None of these non-GAAP financial measures are recognized terms under GAAP and do not purport to be an alternative to any other GAAP measure. 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. Because not all companies use identical calculations, our presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of 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 StatementsRead the full story here

IHS Markit Reports Fourth Quarter 2021 Results

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