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IHS Inc Class A IHS
Q1 2013 Earnings Call Transcript

Transcript Call Date 03/21/2013

Operator: Good day, ladies and gentlemen, and welcome to the Q1 2013 IHS Inc. Earnings Conference Call. My name is Sue, and I'll be your operator for today. At this time, all participants are in a listen-only mode. We will conduct a question-and-answer session towards the end of this conference. As a reminder, this call is being recorded for replay purposes.

I would like to now turn the call over to hand over to Mr. Andy Schulz, Vice President of Investor Relations. Please proceed, Sir.

Andy Schulz - VP, IR: Thank you, Sue. Good morning and thank you for joining us for the IHS first quarter 2013 earnings conference call. We issued our earnings release earlier this morning. If you do not have a copy of this release, it is available on our website at ihs.com.

Some of our comments and discussions on the quarter are based on non-GAAP measures. Our non-GAAP or adjusted numbers exclude stock-based compensation and other non-cash charges and other items. Our earnings release includes both our GAAP-based income statement and statement of cash flows and the reconciliations to the non-GAAP measures discussed during this call. These reconciliation schedules can also be found on our website. The non-GAAP results are a supplement to the GAAP financial statements. IHS believes this non-GAAP presentation and the exclusion of these items is useful in order to focus on what we deem to be a more reliable indicator of ongoing operating performance.

As a reminder, this conference call is being recorded and webcast and is the copyrighted property of IHS. Any rebroadcast of this information in whole or in part without the prior written consent of IHS is prohibited.

Please keep in mind that this conference call, especially the discussion of our outlook, may contain statements about expected future events that are forward-looking and subject to risks and uncertainties. Factors that could cause actual results to differ and vary materially from expectations can be found in IHS' filings with the SEC and on the IHS website.

With that, it is my pleasure to turn the call over to Jerre Stead, IHS' Chairman and CEO. Jerre?

Jerre L. Stead - Chairman and CEO: Thank you, Andy. Good morning and welcome to all of our investors and to my IHS colleagues. It’s pleasure to be with you this morning to share our results from the first quarter.

Regarding the quarterly financial highlights, revenue was up 12% in the first quarter. Adjusted EBITDA increased by 14% and our adjusted EBITDA margin was 30.9%. Free cash flow was $112 million.

Q1 proved to be exactly what we thought it would be, solid and steady performance in the phase of continued uncertainty macroeconomic times. Therefore, we are reaffirming our guidance for 2013, reflecting revenue growth of 9%, adjusted EBITDA growth of 16% and adjusted EPS growth of 10% at the midpoint of our ranges.

Scott Key, our President and Chief Operating Officer; Rich Walker, our Executive VP of Global Finance; and Todd Hyatt, our Senior VP, Chief Financial and Officer and IT Officer will provide more detail shortly.

Nearly two years ago, we noted that we were about to embark on an eight quarter period of immense transformation impacting every aspect of our infrastructure. Since then, we’ve been deploying new systems, implementing new processes and putting in place the right teams and structures is the foundation for our future. The great work our team has been doing and continues to do today is all about two things – delighting customers and enabling our ability to deliver sustainable profitable growth well into the future. Today, we're less than one quarter away from completing the most intensive part of this process.

Read our Earnings Call Transcript disclaimer.
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