IHS Markit (INFO) 24 Sep 192019 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the IHS Markit Third Quarter 2019 Earnings Conference Call. [Operator Instructions] Pleased be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Eric Boyer, Head of Investor Relations. Thank you. sir. ahead, go Please

supplemental thank XXXX joining this earnings QX and issued and Investor IHS IHS website. Relations morning, for Markit our posted release press QX conference earnings to you morning the us Markit for the we materials Good call. Earlier

ongoing discussion directly supplement isolation quarter are our to refer Markit IHS substitute our measures financial considered to of are and understanding comparable believes to non-GAAP should not results includes Our most to they or measures for Please exclude enhance website which from of items. for numbers, of GAAP and be in performance, amortization compensation, non-GAAP measures. information. on other a or reconciliations the the useful a the as release definitions stock-based of non-GAAP but our adjusted operating acquired earnings intangibles, and GAAP its the

recorded copyrighted prohibited. rebroadcast our future are As information prior contain is call, this may and part without is of being call written Any discussion the especially expected Markit. conference webcast outlook, statements IHS the forward-looking consent the and events a IHS conference and of to or subject risks about of in Markit and is This that whole reminder, of uncertainties. this property

differ to Uggla, Lance Hyatt, will be could in remarks, Officer the and CEO questions. SEC from take Factors website. in actual expectations our and your filings and to prepared EVP that the with IHS Financial and materially IHS results cause can available Markit's Chief be found Chairman After Todd Markit

Lance pleasure over my to call it's to With Uggla. Lance? the that, turn

discuss allocation Markit earnings then talk Today, our our highlight intent our I'll the the more to a for capital allocation subject section, update you repurchases share quarterly framework, which the and defense thank Okay. Thank call. also to in which looks regulatory business, And have Included return you, for to sell we'll capital capital pending approval. an aerospace we board and our to quarter to QX to shareholders to to the approval. through initiate divestiture continued and IHS provide joining agreed Eric. dividend us of

So now quarter. teams diversified pleased cash expansion strong flow. and our quarter delivered revenue another QX extremely to with as the growth, of was I margin turning strong

We range completed shares also promise of of million in to de-levered early within QX. our and target our XXX repurchase

closed with and we have achieved the Finally, asset already exchange early revenue Informa synergies.

highlights billion, financial So key to overall. X% of organic up on some Revenue that's an XX% quarter. $X.XXX basis and the

financial across and three performance services solid scaled our resources. transportation, verticals, Continued

XX.X% up $XXX EBITDA million a over margin adjusted Adjusted EPS finally basis and year-over-year. XX% of of of XXX year. $X.XX, prior which points the is up And

within out Now X% strong point expected. at quarter. XX%, growth provide advertising performed digital offset continued the let by range organic within of some recurring Transportation remained in me our with of digits margin, the and impacted that as revenue some weakness segment non-recurring single growth to notable It's fixed high highlights. lower very

performance include optimization We in The recall listings share CARFAX shout continue. the investments for gains expect our we in to activities. have highlights also search quarter margin out used-car market low which by driven to automotive slower driving

early signed with unique date. over life to up targets met for Carfax X,XXX Our launch dealers

our automotive proprietary first leverages our of now enhancements offerings automotive appliance the rising Our of in from powertrain launch benefiting ongoing regulatory data product sets. half brands and on which and offering, finally And additional increased mastermind demands. automotive two many

growth notable organic Let's we where reported to several to move out. with areas call services on X% financial

return Our quarter. growth to index pricing double-digit investments. with recent Derivatives the businesses of growth and each back the processing in on

a level corporate continued more acquisition with a sales tough solutions quarter start in pleased target had trajectories. with issuance. the significant finally line strong overall a actions EDM strong markets, growth due performing After our now to particularly And and market we're on growth conditions, I'm software to rate corporate private run which in Our about. their and year Ipreo municipal basis

another delivered non-recurring strong revenue stable growth our as by X% organic quarter anchored performers quarter Resources, business. revenue downstream business, recurring solid Opus, with In growth growth. the chemical in we our as pricing well and included Strong

upstream performance. business Our continued its steady

and streams. investments to with continue our recent new revenue capabilities progress leading data extend We make into analytics in partnerships insight and to

and integration headway pricing insight, build made of acquisition will our the downstream resources and on We segment. chemical This upon forecasting news agribusiness existing with our data, within our integration our businesses. services

capabilities world in and Agriculture the our largest and and capabilities end biofuels. the chemical We'll expanding expands this fertilizers our transaction chemical into is market protection. crop

leadership I'd great of market and a wake field capabilities Saudi attack. Arabia example out the Finally, like in the to recent our of oil call

on On across following experts brief our downstream our the the attack, the webinar of which upstream, team hosted the economic implications. Monday customers potential a weekend pulled together and country to resources risk our and

brief of over short clients XXX a services. financial and market corporates time Really being understand. the both the our work of together with customers pull Over a help X,XXX coming live period such those joined comprehensive in to great from participants team by financial better able to

vessel revenue Moving on to benefiting from code. was the CMS, organic biennial X% pressure growth boil

to the in single be CMS with largest for forecast. Park low to to within well line of organic CMS digits We design, continue expect the year in revenue X%. perform growth continued business with organic the growth our

update to completed I as acquisition. Ipreo allocation want capital the our we've an our framework give to post de-levering Finally,

is the of to to Xx to range. Our remain targeted leverage on and end a basis range Xx the operate gross tend going higher will

XX% a target a beginning a intend XXXX annual, a a share of recommend tend and XX% program reauthorization to new October will combination as dividend board I minimum an of of cash approve an dividend buybacks capital much as our We our At and through meeting, shareholders capacity capital dividend. return QX, annual share to X% recommend, target. buyback yield our and initial the quarterly in board with to

for the dividend a right We reasons. is initiation the of timing following for believe XXXX the

annual basis EBITDA to years margin X% over be growth. revenue within to operate level points it'll believe merger confidence And to of First, framework growth, to X% our and IHS the organic our We Markit. the of double-digit of successful and organic framework, three this including financial continue ability investment we longer-term adjusted and have in to right maintain earnings margin continue balances expansion range. XXX expansion growth our since

cash for our generate capital business returns M&A. model and free Second, flow ample both

reduced a our groups and return dividend market may the shareholders capital discipline believe end Markit. options in broaden a have to to overhang initiating is of $XX million fourth, our diversify now IHS the optional we potential we Third, QX. to interested great And at approximately outstanding legacy that of way be

within Now capital will be and our focus in financial our allocation terms services, on resources also deploying will scaled, focused will Sizing of capital areas including framework, within of updated potential automotive. M&A, we rationalize Aerospace opportunities fit evaluate to portfolios $XXX provide to incremental capital Defense and million into said, further to letter that of continue to our sell could intent With flexibility. Montagu. entered for our which a deals we've

We move believe right us. for this long-term is the

financial financial and acquisition capital approximately to capital gives around to shareholders within of defense targets. meet framework our annually objectives. of longer-term least The our support It a $XXX allocation our at divisions' us our combination colleagues. of Our operate provides shareholders clear million these return ample capital to points and and aerospace our

with to I'll the back And Todd. over call this, turn

Lance. you, Thank

$XXX in an XX%. of X%. increase Our of and XX% $X.XX. QX and with XX.X% of $X.XX X% our adjusted organic to of or Relative of QX revenue, of our of XX% organic Net margin XXX expectations million, EPS results of $X.XX, were of revenue included billion, of growth and $X.XXX GAAP EPS organic growth of line EBITDA non-recurring income Adjusted an of revenue X% increase with and and of included organic increase an recurring X.%. million

and including at Looking revenue XX% -recurring. was was negative of X% growth growth performance, revenue X% and Organic comprised Transportation recurring non organic growth X% FX. segment flat of

We to by high to perform recall digit expect the range. upper Non- organic single digital growth at was recurring lower recurring of end and impacted marketing. lower continue our

a than to due level business. lower perform our recall expect to margin recurring revenue continue We lower primarily reductions non-recurring at in to

Resources XX% X% increase comprised X% continued business. revenue in from software part X% X%, was acquisitive. The growth and our benefited of and Non-recurring including organic in was recurring non-recurring. strength organic revenue

All million million organic and up X% Our was our million, trailing ACB and organic increased which benefited growth negative versus CMS was organic million and QX XX-months from to increased BPVC a organic $XX FX. XX% in X%, in or organic X% non-recurring ACB from which prior increased organic, revenue to $XXX negative the organic release, $X X% year. X% million quarter. increased contributed $XX flat the including divestiture $X non-recurring Recurring

with and $X Non-recurring was declined non-recurring well Within continue million few Recurring Recurring negative up core organic, organic and specs primarily XX% the of organic renewals. XX% growth revenue segment, recurring was or revenue partially to Financial growth revenue. X% from business past due revenue enterprise benefited perform Design, services decline X%. and on was catch software X% negative lower to organic standards FX. XX% including acquisitive Product our XX%.

index growth growth organic business. derivative Our business pricing decline our offset was due businesses. processing organic Information processing up was flat; strong was Processing by was in it X% but in our core to and loans primarily

and organic led to organic primarily in revenue corporate one-month EDM was actions quarter. and Ipreo contribution increased by revenue X% the Solutions our growth million businesses. $XX included

and profits or EBITDA Adjusted million, margins. million XX% was to $XXX $XX prior Turning versus now year. up

Our points XXX and normalized a FX. XXX and on basis reported for up adjusted basis basis was margin points EBITDA a a XX.X%, Ipreo up

points reported for basis FX. was margin basis a a and EBITDA which points a adjusted year-to-date basis a was and on Ipreo XXX up Our up XX.X% normalized XXX

investment XX expect to level an basis but continue We in to increased expansion normalized QX. our full-year of points margin one-time track

adjusted Transportations a $XX XX% share, Regarding of $X.XX points. segment for per Services XX.X%, margin reported basis. of adjusted XX.X up up with or down was margin of EBITDA %, Financial basis Resources XXX was margin was a Ipreo normalized $XXX $X.XX CMS on adjusted $XXX Adjusted points. points million and million basis margin XX profitability, of XXX improvement. with EPS with XX basis adjusted XX.X%, points. million was million $XXX EBITDA up XX.X%, EBITDA basis with diluted a was EBITDA

business. Our and a excluded of a our a also related reform one-time GAAP sale to adjusted the TMT EPS to gain one-time expense $XXX related million tax million excluded tax of $XXX

was rate tax was our and adjusted XX% rate tax GAAP XX%. Our

Our GAAP fiscal retroactive Treasury million reform tax year pre to that XXXX included certain rules. regulations US tax deferral XXXX related June issued $XXX in changed to expense

expense expect GAAP We $XXX favorable tax a a in adjustment million. tax $XX XXXX of GAAP increase resulting net offsetting million in QX

This impact GAAP not to tax going benefit tax forward will GAAP which from XX% tax effective tax of to We expect GAAP $XXX our from expense. time low-teens rate rate our a one have change adjusted related adjusted excluded our XXXX tax reform, expense tax expense years tax one-time also adjusted future million offsets one to in this an and time excluded XX%. tax was continue tax we expense. This and of GAAP essentially rate

paid rule negative the tax Despite XXXX. company. Cash overall this approximately from an cash impact has positive tax which change $XX in reform owed to been QX of million net XXXX, the will is be in

free cash approximately was Our tax impacted was five of conversion $XX and the On of payment to and full-year due flow by cash QX basis, one-time cash conversion $XXX negatively XX%. rate a be flow $X.XXX our free million. a QX represented million our billion points XX-months will trailing

balance the sheet. to Turning

bank of to was approximately approximately we cash April at QX, an billion. billion a our with end we ratio of our We basis. million X.XX%. ASR $X.X $XXX $XXX leverage bonds debt In XX-year $XXX revolver closed and covenant the completed executed of in quarter was the undrawn million balance a QX. balance Our a and a a add-on further and million $X.XX million X.Xx ASR $XXX quarter, In XXXX interest on rate quarter represented completed effective a gross we

weighted QX average was diluted million Our XXX.X share shares. account

August a Xst. the closed market In activities, to our terms portfolio June business majority XXth also TMT sale the closed of we of Informa of Informa's on acquisition intelligence of we and on agriculture business

annual As neutral The resources will annual revenue EPS. EBITDA while and by million, CMS exchange of exchange, the our approximately $XX result will a our by $XX is decline increase to adjusted to diluted slightly revenue million. adjusted

EBITDA of to definitive Finally, said, price The signed margin. we on XXx $XXX adjusted business as an with to million. multiple approximately for sell EBITDA purchase a A&B adjusted Lance a our business to represents Montagu XXx XX% agreement

We from adjusted $XXX transaction $X.XX expect The will the in result proceeds million. net after-tax transaction EPS of cash approximately dilution. forward of

new structure will We will the against further use reduce capital us we to our capital execute with from leverage framework. allocation proceeds flexibility disposition which as provide

share In annual of the and our return by will to regard EBITDA XX% we capital capital capacity combination of framework, dividend. to our new through flow as XX% Lance cash shareholders a capital define free annual capacity capital of said, adjusted capacity our allocation generated to We target additional as growth. plus buybacks

higher to are revenue at our also FX guidance to full-year guidance updating due billion impact asset drag to provide we Absolute the which to million. growth of revenue than lower from expect $X.XX negative prior primarily due X% organic AG $X.X is range billion We revenue includes of anticipated And full-year FX from to swap. prior $XX the lower TMP X%. for as revenue

to Adjusted guidance EBITDA $X.XX prior $X.XX tracking of range above midpoint billion of billion.

guidance EPS prior at points range and EBITDA $X.XX on high adjusted reported normalized basis to FX of Adjusted and $X.XX. for of end XXX expect a of our Ipreo. the also We margin basis expansion

guidance adjusted adjusted EBITDA updated and materials. in between We EPS have supplemental items our

of expect conversion tax QX. the to Finally, approximately XX% payment one-time due we in cash

guidance November. will provide We detailed XXXX in

this expect target However, EPS our taking to we double-digit deliver time adjusted account to AMD the divestiture. dilution growth from expected into

double-digit dividend in initiation adjusted XXXX. we growth, to from TSR additional addition benefit will EPS our see In

with over call the that to And Lance. will turn back I

Todd. Thanks

for year. pleased have the Operator, are We continued so trusted and ready post strong in we're So that appreciate return an a us capital guidance in executing support strong merger in quarter, updated to shareholders. updated capital very your increase many An that for us you to and lines position allocation a framework another beyond. conclusion open puts transparency of questions. to and

Instructions] [Operator

Our comes Manav first with question Patnaik Barclays. from

open. Your line is

Aerospace could new Thank the you. on allocation walk through this want the deal? up Jane's that. the framework. you just is margins. basically you capital Defense? Good just They than defense to clarify that follow And aerospace like, more and good and growth, of and congratulations Maybe Or about I sale. on maybe obviously have in and did talk morning wondering you just rationale picked fit? Can the really to was all why if go

we in and just three look when at IHS aerospace it's So defense. components. guess major are I And Markit, there transportation

to big and it and forward country there's in financial And aerospace invest, automotive So made and slight but across you automotive, our overlap not defense economic to alone, it at the look investment or areas further, grow revenue areas capital fit to and allocation. therefore maritime just when stood divestiture. commitment synergies, synergies defense. fell maritime markets. had across energy transportation and our aerospace the but as into group Whereas a business, with outside and risk terms And of of invest sense for and

Next question.

Our comes Merrill Lynch. America Gary question Bisbee Bank from of with next

is open. line Your

the drove those Hey, financial Thank you -- the services Just guys. forward? more going transportation Good non-recurring a and that revenue should give Could and color really you. would on both what continue at little just that morning. reasons the business? weakness are can factors

Okay. and Maybe Todd. to I'll I'll pass start then

either don't So weakness see I division. in I guess financial

you piece, OEMs, when margin when across for business direct less look dissect driver overall got look little do And activity big the group, our suits you XX% OEMs. recall the of of outstanding sectors take there business look and look the And have the example all which a automotive, to $XXX of being group. you is if look XX% bit the and well with know recurring, and transportation we're recall, in we you've our non-recurring you as higher really automotive. So group. diversified you performance a you to I indirect best. defined lower recall doing at numbers, if across big consider around have at across to When piece is About is And about whole mix, the two-- million where recall indirect expand that business. of more we the want the to at margins our margin they're non-recurring

side. We which a for also digital quarters called in several a of we advertising had now out the bit slowdown

it. pleased the the or changed diversification quarter in those in margin non-recurring. in But the in and the forward and coupled we of Financial We, decline that real previous say EBITDA I transportation. our things growth there's nothing's would markets, shows so quarter. but lots bodes always quarter, for up of growth well Very a large had slight that to revenue. had And within quarter, strong a sale software with of a of together on terms have a sorry, profile for recurring, piece

play quarter, got cylinders came a and all little into we've helped definitely This Ipreo firing bit. on that

strong. performing EDM some soft actions all mixed corporate of quarter-over-quarter the But and super grass even expectations. are haven't it's that within really, grown We

for ends scale change anything the your quarter, as the we message bit up move should little outlook to really exactly $XX swap the any some around don't a brands top of and think all we had I FX. generally here in mid TBT, of We is EBITDA, of give million and operating three revenue you at we've of least got the Agri each up no have change. They're forward TMG guidance EPS upper our say the revenue on verticals. So see to

So this teams best all, in it is the diversified since I post executing well. at look terms think when of strong I really quarter merger

Let's the go question. next to

Wells question next Bill Warmington with from Our Fargo. comes

line open. Your is

morning, Good everyone.

a growth kind reason something revenue XX%. at the performance is Was at the --was particularly So trying Ipreo get there. to a to about deferred try there of number just steady to the to organic just revenue I'm made apples-to-apples wanted there timing I particularly that state ongoing had strong rate. that an in or strong? get a question with I And

Todd. go ahead Yes,

in was organic We one $X last Yes. quarter. of teen's particularly a had month good organic of had and Ipreo a month It quarter strong it in The had quarter. the million very quarter. of the contributed a growth.

growth, all although teens to expect certainly expect we Ipreo, wouldn't high Ipreo about grower a about into that be of talked XXs double-digit high level, talked we've PCM is going in forward, when we performing double-digit very so I think think Bill. I toward XX% but the a

Thanks Todd.

question. Next

Our J.P. next question with Steinerman comes Morgan. from Andrew

open, Your line is

Could just the energy conducive that mentioned at the I ACV you've at talk more X%. Hi. trending above growth X% it note X%. I you resources right acceleration? for subs And little Is know is up growth the that already now? backdrop ACV are resources a bit about

should is many think I spend I've I Well, in time and resources, IHS prices I three our and a overall stars automotive in of Markit. Right. particular makes same within energy think there divisions for personally The focusing in know performance. more all drive I that volatility our think volatile don't to indicator said be on a years lot

they We're on consulting. piece So its the they're volatile that they in and advising what outperformed volatile are doing. lend buy to teams making that It's that decisions doing are if a in business of shouldn't people actually should anything Should they? shouldn't an the in prices markets. asset we a project quarter interested that they? And side

-- daily there solid to has new and And better agribusiness. that with and people think market consulting around that's It's refined thing products having do downstream energy forecasts, help high, in IHS us. mid continues north be around new can the some of it and going you to single of monthly but weekly say fundamentals I'd support digits. Opus. we demand. market a and reporting volatile the double-digits all the digits would I go these we information that that prices, supports and to the analytics give as is think I Markit data we're And and is us Are XX%, markets I a model science good that in place around have insights, do really pricing around the other and really supply coupled growth have that where business upper had north Not say mid-single news

So chemicals agriculture. into it's downstream

you It's clean around renewables supply a our position playing business that do of into. add growth itself chemicals and have which top various and into really all on we're the all segment strong We tech a is then inputs that chains.

where up where performance look is I and assets mix the the the say of overall more there's the operating would is a flat few down that I five I five So under XX% data million. but piece so at get Andrew. I even hundred of And really over division core at out a last that and And or that can or taking supports it's only five think this volatility, division that's you being look the on than bit division. effectively million years great managed $XXX where pure how our support to it,

that the more skin some expand of it think in I desire growth. but marketplace volatilities, explore digits in do in than to of and support mid-single So in have take But the and game this can advice our international enough the away projects. terms we friend big to -

question? Next

with next question from SunTrust. Our comes Andrew Jeffrey

line is Your open.

you but Appreciate I you you sort two emissions the your to sort major you with aids that generally if manufacturers this happening timely, complexity in business, might have definitely your deal the think the the talk cut US a little services. Good changing a markets? affect your laws. of wonder think how auto for morning. federal auto growth if question. A I federal what's deal of guess and bit Hi. around hypothetical sort about pertinent, Lance, of major California emissions I Can side of know and battle in four taking about US demand you I for regardless. sort auto of

quite a Well, quarter not good reporting we advisory automotive regulatory Right. with in are has there. in of also that the me purely our just automotive head position today have of actually --actually our here room our Tavernier. of because But Edouard because around

So on that Edouard? him I'll in let asked the specifically. question you jump

data generally advisory answer demand services, demand the for customers scenario for around demand provide of and risk lot creates And and for is that a to our can Lance. regulatory your creates planning and short question for Great. uncertainty we Thank simulation. you, our

but customers, them we this uncertainty. can tough generally environment So for help speaking through

McVeigh Kevin Our with Suisse. Credit question comes next from

open. is Your line

Does things, Lance, the view the and you're of on with context asset about two think that remaining across sales. something should anything the the up? then nice like, verticals. Obviously, for or scaling the imply the sounds taking it or how a is in that just And CMS be within aerospace that that the is scaled I more sale congratulations defense, Great. going three assets. guess guidance will business adjusted real is forward? Hey, focused we Thanks.

Okay. I'll let the guidance talk about just after the do I Todd talked divestiture.

say yes, very financial the have are are the on to So, verticals. strategically markets related to focused. investing focused automotive, energy scaled of that I growth And and firm. we very they're Those our very putting ones in large --for terms verticals work. of organic the capital

both We acquisition supporting science growth those and each longer-term have investment think into targets analytics in are a and lot made our customers. of of effective we and we supporting areas that data on our

very So And divested -- transportation. of non the CMS, within we divested core the AD&S have TMT. portion we've now from

what look a at within one has to to framework divestiture. want other this continue say to did employees both that be and process. we'll is I allocation out I shareholders guess capital the inside the firm so this today And that potential call thoughtful I very And thing to

scaled to to in of think a assets, to backdrop decisions want have short-term not for we're many It's non long-term we'll approach our acquisitions to know And for where that forward. But got analyzing We that over different many to are our potential the afraid business that shareholders, building the careless the reckless and the to not take every opportunities make people or of the going portfolio. And outside rather our make we're our invest very own look of are respectful going years. about that win verticals may think firm. in we we that the our And assets, we day people. is assets our overall we're decisions to going we're of for careful customers we've long-term. And core.

no do to there's of side? thought the management myself from want guidance But on add my you team. or lack strategic Todd,

we information included A&D the and is subject not in the Yes. has guide The to adjusted very A&D. of EBITDA the terms think impacts or have of embedded I certainly guidance. will did on [Tech guide in It as regulatory for disposition and approvals. we clear and EPS out of been the XXXX, and be provide forward Difficulty] that XXXX in sufficient adjusted enclosed revenue I filings are

from comes Alex question UBS. next with Kramm Our

is Your line open.

you I'm the Yes. just not a that was more. return repeating hoping out everyone. I but little Hey, can flush Hopefully anything, good capital morning, bit

So XX bear I another with your XX correctly share et and do I me a right, got for for flow. hear whatever so of XX% now if math second, cetera. my free is M&A you've And XX% so dividend cash and the for basically buyback you another or to

a alright buyback. we to So the everything I out come to or guess I certainly of Is was end buyback just XX%. if so year say need the wondering for or a leverage does right percentage we that can the have and low like I forego buyback buybacks or it's of of the guaranteed for the to new guess deal would you

of the like guess now. like And proceeds it a the then also, with Todd, very quickly you kind using you're range question seems is net why de-leveraging, said I

you last a So in could year incremental XXX% well de-leveraging why as and go you for one. choose do capital the to return is a the

Sorry for the loaded question.

Yes. and Go Todd, ahead, start you if add. always I can to want

size, the the the of for element. capital capacity Just return company capital and

have we circa year we from and additional growth. EBITDA it, cash $X.XXX capacity about generate then flow think I of that billion adjusted annual when a it So we have call

the leverage growth Xx called the $XXX out take million. ratio and can and you the So EBITDA

a a minimum So to essentially we've the said go XX% billion. baseline up XX%. capital is return And $X.X capital at of to that will

yield, So a that allocation annual we X% a of dividend that of think million at in and and buyback. as dividend share buyback million million of terms minimum a $XXX the of dividend $XXX -$XXX between would leaves

minimum return basis. annual baseline would we that that capital an on execute be So the will

as we far cash A&D/ the would strategic perspective from assets. acquire available disposition, additional that like other potentially Jane's As that from to expect would a be capital

a to the little to near comment, the ultimately going why said that's term in to down Lance in company high of a have we're bit powder. the leverage run so dry going And But opening his we're as bring Xs. bit in

to would the of level. then And $XXX that $XXX opportunity the at if level don't we so increasing look capital, million million have deploy we to above buyback the

Yes.

I that think it. was

what think -- the our years. we've Todd. past with. was shareholders then be and really you a we've listened to provide guideline happy the That's important within that transparent defining And it's thanks capital And is to for three us live completely So I over done to framework so today.

we'll and on the the for that And firm. based then as on opportunity annual levels so you've best got the basis adjust a us from minimum remaining

Let's next the go question. to

from Our with Jeff Silber Markets. comes next Capital BMO question

Your line is open.

much. so Thanks

You impact I'm decisions in of Is what buying about with impacting believe on have in seen Thanks. going on the business. that wondering side? your that's I the going services markets, financial everything you earlier had been maybe forward? talked overall volatility the energy some

referring private are -- be So that assets? energy to equity you're was that that question? investing that Is private provide advice we related your may to equity may in

more vertical. financial the I services in was interested

Okay.

financial energy but our just services So or products related and them services. to respect advising with financial selling overall in

would little as but want be on bit possible, The great. former the latter well if a give if that to you

Okay.

that's financial customers relationship. a growth ever twofold. And have been didn't it's find merger, services we services from driver us. So I the deeper one since just One, synergies I revenue growth have that it's coming of those financial a standalone do really the for

we're terms having back and that in wind doors participating. definitely So opening of our on

investments equity in thing the has second active in say around of private energy very and market. been is I'd The terms

in are And investment investments solar, and when at I'd and cetera. you you look say growth look those and where wind the the Third, that coming at projects. renewables profile et

A and of terms equities in lot of are driven a private playing of the role being big financial out them markets investing.

on have financial space growth our whole with some but the So to investments fuel we've we Permian, areas. then coming those renewable parameters in really related advisory on to nice the where terms fossil from in relationship now sides non the expertise help And subscription the got it and was the in data of whether markets.

also you and That's the see market us. market is you markets information So for would Overall, good more last what there's quarters for means fairly that's is great issuance. clients energy what good us. is want financial been I buoyant it Ipreo few a off in financial in first is see for bellwether support. equity say been Volatility and our that

I you look walk around also Ipreo municipal related municipals go That's or a large related encouraging we've we've you non-recurring there called Lower finally, it's but whenever and issuance transaction of volatility numbers around where And Ipreo you hitting in derivatives derivatives processing record bonds volatility at more there. value, that activities volume we've seen rates transactions. upside, out in FX out dollar or and and get issuance. not smaller they're and if interest have total been there's does and and times market very then some and processing there's rates, increased some good. there's A more of in And to seen been equity get of there. and lot the activity

geopolitics quality markets types of general the we data financial quantity, that in think and the and are a of information offer that have net So had for markets dynamics our to different the to good I customers. around and company an lot been global -net,

it diversified think I'm about. I for us quarter and pleased particularly that So quite a it's been bodes well

Next question.

next Rosenbaum with comes from Our Shlomo Stifel. question

Your line is open.

to you about they've business positioning guys how a growing you talk can of. about A&D the the just portfolio had revenue that bit at components my wise? vein a doing a Thank then in the CMS Could the for have what's fast you been morning. divestitures how little Good question. a in taking fast job growing? left been of and little And been similar Hi. I want good you ask discuss bit

Okay.

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question. Next

Deutsche Our with next question Sabadra Ashish comes Bank. from

Your line is open.

morning. and robust some good Hi, margin pretty We expansion both resources. in saw financial

you Thanks. the more on much those maybe color going the has investments? some forward forward? You Can quarter. also then the investment for profile trending just can provide talk in one-time about some margin about you potential margins talked better, just And going fourth been better just

in if put Right. XXX start really line some Well, to an guess promise. Todd a I and I off external just I'll points just merged, operating since we sand. discipline points XXX of basis both once basis margin note. an and that's want the I of again internal leave we've And the expansion. been

the deliver investment we And that. mantra, That's motivation that's how the above to and years. XXX accordingly. the five revenue works points strategy for internal to The my operate. is points well teams other teams come our and from a So margins teams teams how team to Many And run over will our and of But occasions, what and XXX their we we all that's X% in at our or organizing half move it's to our of them of to And what from we've distribution the discipline my reinvestment. capacity firm. terms run efforts half has firm. basis made. basis growth. can And discipline feel margin. think our is the that next the shareholders X% grow XXX the the to your that's that outperform for mid-XXs improve fair how It we I four very come that's

Next question.

next with Tong George comes Our from Goldman Sachs. question

Your line is open.

good thanks, morning. Hi,

Your discuss guidance updated conversion you expectations Can for cash muted now? a was from from flow EBITDA flow to free mid are free your XX%. XXs cash why more

want you that. to Todd, add

about of points. conversion $XX million the call. forward one-time talked the QX don't in this will on by the I We five conversion. reduce impact That's see Yes. on an payment tax

Foresi next with question Cantor Joseph Our comes Fitzgerald. from

line open. is Your

This is Drew Kootman for on Joe.

pipeline? plenty And talk the you acquisition of could if if opportunities seeing you're about curious out still Just there.

it's lots make always opportunities Well, own of of lots work on our terms invested we -- priced where be capital. there's would necessarily in return them able there's, to yes, not

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Next question.

Our Toni comes from next Morgan with Stanley. Kaplan question

open. line Your is

much. so Thanks

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with Well, today it's about Edouard a good me regularly. so we here question, Toni. of and it's when talk kind I

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Our with next question comes from Andrew Nicholas Blair. William

Your line is open.

questions. our in It's morning. taking Good Trevor Andrew. for Thank Hi. Romeo you actually for

I you Lance, revenue agribusiness what's think, mentioned a you've that more seen you us already sense synergies detail there some response group. just and Can of those on early give the synergies? the from Thanks. driving initial customer

Yes.

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chemicals, lingo and that price firm that customers, phosphates to build look customers a products. the how got indices. you've and So their that the all people and potash Biofuels, know got space, their of people benchmarks in has researchers they're got a that feedstock sudden you've to like inside and you've is exciting consultants all agricultural into which talk and

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teams wanted call. And Thank out wins. had some I call And nice really them early to so on you. the the

question. Next

Our Canaccord. with question Joseph comes from next Vafi

open. is line Your

question. my Good Hi. morning. taking Thanks for

chemical large but a follow-up mean, obviously, small business It's business there's for Just synergy very a on the a here. good relatively now you industry. on I a that side. Agri

over side? in acquisition area Thanks. on and move away commodities things this -- provide into as input rather does than and the other areas invest the this side perhaps the that and capability such more guys output You from chemicals

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when business we out in was And substantively of $XX the taken it so for revenues. agribusiness, with the TAM modeled larger. We've approximately a million

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in a agriculture revenue out seems earn for million for it in to $XXX - Because just really billion $X the a $X TAM. company small billion revenues of

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I a to there. a do think lot for us And market. there's it's big

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think upper But it should of digits a definitely we acquisition. to single spot the post that double be in early digits years bright is

question. Next

of Q&A End

for no closing at Eric questions to showing I'd like the currently back further to I'm this Boyer remarks. And time. call turn over

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