IHS Markit (INFO) Offers Updated FY16 Outlook Following Closure of Merger

IHS Markit Ltd. (Nasdaq: INFO) is updating its 2016 financial guidance in connection with the previously announced completion of the merger to form IHS Markit.

For the fiscal year ending November 30, 2016, including 12 months of results of IHS Inc. and approximately 4.5 months of results of Markit Ltd. from the date of closing of the merger, IHS Markit expects:

• Revenue in a range of $2.735 to $2.765 billion, including Markit contribution between $445 and $455 million;
• Adjusted EBITDA in a range of $975 to $995 million, including Markit contribution of between $190 and $200 million; and
• Adjusted EPS in a range of $1.72 to $1.78 per diluted share.

Additionally, for the year ending November 30, 2016, IHS Markit expects:

• Depreciation expense to be approximately $115-120 million;
• Net interest expense to be approximately $115-120 million;
• Amortization expense related to acquired intangible assets to be approximately $220-225 million;
• Stock-based compensation expense to be approximately $170-180 million;
• A GAAP effective tax rate of approximately 15-16 percent;
• An adjusted effective tax rate of approximately 25-26 percent;
• Weighted average diluted shares of approximately 317 million; and
• Total outstanding shares of approximately 442 million shares at fiscal year-end.

For additional information, see the related supplemental presentation posted to our website at investor.ihs.com.

The above outlook does not give effect to any merger-related synergies, as we are targeting the middle of the fourth quarter of fiscal 2016 for the implementation of the first round of synergies and therefore expect only a nominal level of reported synergy benefit in fiscal 2016. The above outlook also assumes no further currency movements, acquisitions, divestitures, pension mark-to-market adjustments or unanticipated events. See discussion of non-GAAP financial measures at the end of this release.

As previously announced, IHS will hold a conference call to discuss this guidance on July 13, 2016, at 8:00 a.m. EDT. The conference call will be simultaneously webcast on the company’s website: investor.ihs.com.

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