Analytics company IHS reported results for the first quarter ended February 29, 2016. Revenue was $548 million, up 7 percent from the prior-year period.
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Total organic revenue growth was 3 percent, with 1 percent subscription organic revenue growth. Adjusted EBITDA was $180 million, up 13 percent from the prior-year period.
Adjusted earnings per diluted share (Adjusted EPS) was $1.40, up 10 percent from the prior-year period Free cash flow of $127 million.
The subscription-based business grew 1 percent organically in the first quarter of 2016 compared to the same period of 2015.
First quarter 2016 revenue increased 7 percent compared to the first quarter of 2015.
First quarter revenue for Resources decreased $2 million, or 1 percent, to $216 million, and included negative 7 percent organic growth for the subscription-based business.
IHS Energy CERAWeek event generated approximately $14 million in revenue for the first quarter of 2016; this event was held in the second quarter last year.
Excluding the effect of the CERAWeek timing shift, total Resources revenue declined 7 percent for the first quarter of 2016. First quarter Adjusted EBITDA for Resources increased $2 million, or 2 percent, to $87 million. First quarter operating income for Resources increased $3 million, or 5 percent, to $59 million.
First quarter revenue for Transportation increased $24 million, or 14 percent, to $200 million, and included 10 percent organic growth for the subscription-based business.
First quarter Adjusted EBITDA for Transportation increased $11 million, or 18 percent, to $73 million. First quarter operating income for Transportation increased $2 million, or 6 percent, to $43 million.
First quarter revenue for Consolidated Markets & Solutions (CMS) increased $12 million, or 10 percent, to $133 million, and included 4 percent organic growth for the subscription-based business.
First quarter Adjusted EBITDA for CMS increased $8 million, or 41 percent, to $28 million. First quarter operating income for CMS increased $10 million, or 167 percent, to $16 million.
IHS and Markit announced the signing of a definitive agreement under which the companies will combine in an all-share merger of equals.
Based on the closing prices of IHS and Markit common stock on March 18, 2016, the implied equity value of the transaction is more than $13 billion. The transaction has been unanimously approved by the Board of Directors of each company.
Upon completion of the merger, the combined company will be renamed IHS Markit and will be headquartered in London and have certain key operations based in Englewood, Colorado.
IHS shareholders will own approximately 57 percent and Markit shareholders will own approximately 43 percent of the combined company on a fully diluted basis.
IHS shareholders will receive 3.5566 common shares of IHS Markit for each share of IHS common stock, which based upon the IHS closing price of $110.71 on March 18, 2016, implies a per share price of Markit common shares of $31.13. ■