IHS Markit Reports Fourth Quarter 2021 Results

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.

"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.

The components of revenue growth are described below by segment and in total.

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 Statements

This communication contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management's current views concerning future business, events, trends, contingencies, financial performance, or financial condition, appear at various places in this communication and use words like "aim," "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "forecast," "future," "goal," "intend," "likely," "may," "might," "plan," "potential," "predict," "project," "see," "seek," "should," "strategy," "strive," "target," "will," and "would" and similar expressions, and variations or negatives of these words. Examples of forward-looking statements include, among others, statements we make regarding: guidance and predictions relating to expected operating results, such as revenue growth and earnings; the impact of the COVID-19 pandemic; strategic actions such as acquisitions, joint ventures, and dispositions, the anticipated benefits therefrom, and our success in integrating acquired businesses; anticipated levels of capital expenditures in future periods; anticipated levels of indebtedness, capital allocation, dividends, and share repurchases in future periods; our belief that we have sufficient liquidity to fund our ongoing business operations; expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities, and governmental and regulatory investigations and proceedings; our strategy for customer retention, growth, product development, market position, financial results, and reserves; the completion of the merger with S&P Global Inc. ("S&P Global") on anticipated terms and timing, including unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion and growth of the combined company's operations and other conditions to the completion of the merger; the ability of S&P Global and IHS Markit to integrate the business successfully and to achieve anticipated synergies; potential litigation relating to the proposed transaction that could be instituted against S&P Global, IHS Markit or their respective directors; the risk that disruptions from the proposed transaction will harm S&P Global's and IHS Markit's business, including current plans and operations; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the merger; rating agency actions; potential business uncertainty, including changes to existing business relationships, during the pendency of the merger that could affect IHS Markit's financial performance; and certain restrictions during the pendency of the merger that may impact IHS Markit's ability to pursue certain business opportunities or strategic transactions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management's 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. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements are more fully discussed under the caption "Risk Factors" in our Annual Report on Form 10-K, along with our other filings with the U.S. Securities and Exchange Commission ("SEC"). However, those factors should not be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which are based only on information currently available to our management 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 with the SEC or on our website at investor.ihsmarkit.com.

About IHS Markit (www.ihsmarkit.com)

IHS Markit (NYSE: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 © 2022 IHS Markit Ltd. All rights reserved.

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