IHS Reaffirms 2012 Financial Guidance

  IHS Reaffirms 2012 Financial Guidance

Business Wire

ENGLEWOOD, Colo. -- November 14, 2012

IHS Inc. (NYSE: IHS), the leading global source of information and analytics,
is reaffirming its 2012 revenue, adjusted EBITDA (Earnings Before Interest,
Taxes, Depreciation and Amortization) and adjusted earnings per share (EPS)
guidance. The company plans to publicly reaffirm its earnings guidance during
its previously announced conference presentation to be made today.

As discussed on the company’s September 20, 2012 conference call, IHS expects:

  *All-in revenue in a range of $1.515 to $1.535 billion, including an
    organic growth rate of approximately eight percent for the portion of the
    business that is subscription-based
  *All-in adjusted EBITDA in a range of $480 to $490 million
  *Adjusted EPS between $3.77 and $3.89

The above outlook assumes no further currency movements, acquisitions, pension
mark-to-market adjustments or unanticipated events.

About IHS (www.ihs.com)

IHS (NYSE: IHS) is the leading source of information, insight and analytics in
critical areas that shape today’s business landscape. Businesses and
governments in more than 165 countries around the globe rely on the
comprehensive content, expert independent analysis and flexible delivery
methods of IHS to make high-impact decisions and develop strategies with speed
and confidence. IHS has been in business since 1959 and became a publicly
traded company on the New York Stock Exchange in 2005. Headquartered in
Englewood, Colorado, USA, IHS is committed to long-term, sustainable growth
and employs more than 6,000 people in more than 30 countries around the world.

Use of Non-GAAP Financial Measures

Non-GAAP results are presented only as a supplement to the financial
statements based on U.S. generally accepted accounting principles (GAAP). The
non-GAAP financial information is provided to enhance the reader's
understanding of our financial performance, but no non-GAAP measure should be
considered in isolation or as a substitute for financial measures calculated
in accordance with GAAP. Reconciliations of the most directly comparable GAAP
measures to non-GAAP measures, such as Adjusted EBITDA and Adjusted earnings
per diluted share, are provided within the schedules attached to this release.

EBITDA is defined as net income plus or minus net interest plus income taxes,
depreciation and amortization. Adjusted EBITDA further excludes (i) non-cash
items (e.g., stock-based compensation expense and non-cash pension and
post-retirement expense) and (ii) items that management does not consider to
be useful in assessing our operating performance (e.g., acquisition-related
costs, restructuring charges, income or loss from discontinued operations, and
gain or loss on sale of assets). Adjusted earnings per diluted share exclude
similar items as Adjusted EBITDA. None of these non-GAAP financial measures
are recognized terms under GAAP and do not purport to be an alternative to net
income as an indicator of operating performance or any other GAAP measure.

Management uses these non-GAAP measures in its operational and financial
decision-making, believing that it is useful to eliminate certain items in
order to focus on what it deems 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 and Adjusted earnings per diluted share metrics.
Management also believes 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. EBITDA, Adjusted
EBITDA, and Adjusted earnings per diluted share are also used by many of our
investors, research analysts, investment bankers, and lenders to assess our
operating performance. For example, a measure similar to Adjusted EBITDA is
required by the lenders under our term loan and revolving credit agreement.

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. However, these measures can still be useful in
evaluating our performance against our peer companies because management
believes the measures provide users with valuable insight into key components
of GAAP financial disclosures. For example, a company with greater GAAP net
income may not be as appealing to investors if its net income is more heavily
comprised of gains on asset sales. Likewise, eliminating the effects of
interest income and expense moderates the impact of a company's capital
structure on its performance.

All of the items included in the reconciliation from net income to Adjusted
EBITDA are either (i)non-cash items (e.g., depreciation and amortization,
stock-based compensation, non-cash pension and post-retirement expense) or
(ii)items that we do not consider to be useful in assessing our operating
performance (e.g., income taxes, acquisition-related costs, restructuring
charges, income or loss from discontinued operations, and gain or loss on sale
of assets). In the case of the non-cash items, management believes that
investors can better assess our operating performance if the measures are
presented without such items because, unlike cash expenses, these adjustments
do not affect our ability to generate free cash flow or invest in our
business. For example, by eliminating depreciation and amortization from
EBITDA, users can compare operating performance without regard to different
accounting determinations such as useful life. In the case of the other items,
management believes that investors can better assess operating performance if
the measures are presented without these items because their financial impact
does not reflect ongoing operating performance.

IHS Forward-Looking Statements:

This release may contain forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are
statements that are not historical facts. Such statements may include
financial projections and estimates and their underlying assumptions,
statements regarding plans, objectives and expectations with respect to future
operations, products and services, and statements regarding future
performance. Forward-looking statements are generally identified by the words
"expect," "anticipate," "believe," "intend," "estimate," "plan" and similar
expressions. Although IHS and its management believe that the expectations
reflected in such forward-looking statements are reasonable, investors are
cautioned that forward-looking information and statements are subject to
various risks and uncertainties—many of which are difficult to predict and
generally beyond the control of IHS—that could cause actual results and
developments to differ materially from those expressed in, or implied or
projected by, the forward-looking information and statements. These risks and
uncertainties include those discussed or identified by IHS from time to time
in its public filings. Other than as required by applicable law, IHS does not
undertake any obligation to update or revise any forward-looking information
or statements. Please consult our public filings at www.sec.gov or
www.ihs.com.

IHS is a registered trademark of IHS Inc. All other company and product names
may be trademarks of their respective owners. © 2012 IHS Inc. All rights
reserved.

Contact:

IHS Inc.
News Media Contact:
David E. Pendery, +1 303-397-2468
david.pendery@ihs.com
or
Investor Relations Contact:
Andy Schulz, +1 303-397-2969
andy.schulz@ihs.com
 
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