Verisk (Nasdaq:VRSK), a leading data analytics provider, today
announced results for the second quarter ended June 30, 2020.
Scott Stephenson, chairman, president, and CEO, said, “Our
second quarter results reflect the enduring strength and stability
of our business model, and the laser-focus of our over 9,000 Verisk
teammates on delivering for our customers as they face new
challenges in this environment. Our long-term objectives are
unchanged. We remain committed to offering a great customer
experience, protecting the health and well-being of our teammates,
and continuing to drive our innovation agenda.”
Lee Shavel, CFO and executive vice president, said, “Verisk
delivered organic constant currency adjusted EBITDA growth of
12.4%, demonstrating strong operating leverage despite reduced
revenue growth this quarter due to the impact of COVID-19. This
leverage reflects the responsiveness of our compensation structure
and our attention to controlling headcount growth during these
uncertain times. We continue to use our strong cash flow to invest
in high growth, high return on investment projects that support
future growth.”
Summary of Results (GAAP and Non-GAAP)(in
millions, except per share amounts)Note: Adjusted EBITDA, diluted
adjusted EPS, and free cash flow are non-GAAP measures.
|
|
Three Months Ended |
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
June 30, |
|
|
|
|
|
|
June 30, |
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
Change |
|
|
2020 |
|
|
2019 |
|
|
Change |
|
Revenues |
|
$ |
678.8 |
|
|
$ |
652.6 |
|
|
|
4.0 |
% |
|
$ |
1,368.6 |
|
|
$ |
1,277.6 |
|
|
|
7.1 |
% |
Net income |
|
|
179.0 |
|
|
|
150.4 |
|
|
|
19.0 |
|
|
|
350.7 |
|
|
|
284.8 |
|
|
|
23.2 |
|
Adjusted EBITDA |
|
|
348.3 |
|
|
|
304.1 |
|
|
|
14.5 |
|
|
|
666.3 |
|
|
|
595.9 |
|
|
|
11.80 |
|
Diluted GAAP EPS |
|
|
1.08 |
|
|
|
0.90 |
|
|
|
20.0 |
|
|
|
2.12 |
|
|
|
1.71 |
|
|
|
24.0 |
|
Diluted adjusted EPS |
|
|
1.29 |
|
|
|
1.10 |
|
|
|
17.3 |
|
|
|
2.46 |
|
|
|
2.13 |
|
|
|
15.5 |
|
Net cash provided by operating
activities |
|
|
249.5 |
|
|
|
200.3 |
|
|
|
24.6 |
|
|
|
612.1 |
|
|
|
566.4 |
|
|
|
8.1 |
|
Free cash flow |
|
|
192.8 |
|
|
|
153.4 |
|
|
|
25.7 |
|
|
|
502.5 |
|
|
|
474.3 |
|
|
|
5.9 |
|
1
Revenues
Consolidated revenues increased 4.0%, and 1.1% on an OCC basis,
for second-quarter 2020. Normalizing for the impact of the
injunction on roof measurement solutions, which adjusts for $8
million of associated revenue in the prior-year period, OCC revenue
would have grown 2.4% in second-quarter 2020.
The company has analyzed its solutions and services to assess
the impact of COVID-19 on its revenue streams. It has not
identified any material impact of COVID-19 on approximately 85% of
its revenues at this point, as much of these revenues are
subscription-based in nature and subject to long-term contracts.
Normalizing for the impact of the injunction on the roof
measurement solutions, these revenues would have grown
approximately 6.5% on an OCC basis in the second quarter
of 2020. Of the remaining 15%, the company has identified
specific solutions and services, largely transactional in nature,
that are being negatively impacted by COVID-19. These
revenues declined approximately 20% on an OCC basis in
second-quarter 2020 compared to the prior-year period.
Revenues and Revenue Growth by Segment(in
millions)
|
|
|
|
|
|
|
|
|
|
Revenue Growth |
|
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
June 30, |
|
|
June 30, 2020 |
|
|
|
2020 |
|
|
2019 |
|
|
Reported |
|
|
OCC |
|
Underwriting &
rating |
|
$ |
343.5 |
|
|
$ |
314.8 |
|
|
|
9.1 |
% |
|
|
5.1 |
% |
Claims |
|
|
142.9 |
|
|
|
156.2 |
|
|
|
(8.6 |
) |
|
|
(2.9 |
) |
Insurance |
|
|
486.4 |
|
|
|
471.0 |
|
|
|
3.3 |
|
|
|
2.5 |
|
Energy and Specialized Markets |
|
|
154.4 |
|
|
|
137.3 |
|
|
|
12.4 |
|
|
|
(2.8 |
) |
Financial Services |
|
|
38.0 |
|
|
|
44.3 |
|
|
|
(14.1 |
) |
|
|
(2.7 |
) |
Revenues |
|
$ |
678.8 |
|
|
$ |
652.6 |
|
|
|
4.0 |
|
|
|
1.1 |
|
|
|
|
|
|
|
|
|
|
|
Revenue Growth |
|
|
|
Six Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, 2020 |
|
|
|
2020 |
|
|
2019 |
|
|
Reported |
|
|
OCC |
|
Underwriting &
rating |
|
$ |
687.6 |
|
|
$ |
620.6 |
|
|
|
10.8 |
% |
|
|
6.7 |
% |
Claims |
|
|
288.2 |
|
|
|
303.9 |
|
|
|
(5.2 |
) |
|
|
(1.3 |
) |
Insurance |
|
|
975.8 |
|
|
|
924.5 |
|
|
|
5.5 |
|
|
|
4.2 |
|
Energy and Specialized Markets |
|
|
314.5 |
|
|
|
265.8 |
|
|
|
18.3 |
|
|
|
(0.2 |
) |
Financial Services |
|
|
78.3 |
|
|
|
87.3 |
|
|
|
(10.3 |
) |
|
|
0.1 |
|
Revenues |
|
$ |
1,368.6 |
|
|
$ |
1,277.6 |
|
|
|
7.1 |
|
|
|
3.0 |
|
Insurance segment revenues grew 3.3% in the second quarter of
2020 and 2.5% on an OCC basis. Normalizing for the impact of the
injunction on roof measurement solutions, Insurance revenue would
have grown 4.3% on an OCC basis.
|
• |
Underwriting & rating
revenues increased 9.1% in the quarter and 5.1% on an OCC basis,
resulting primarily from an annual increase in prices derived from
the continued enhancements to the content of the solutions within
the industry-standard insurance programs, as well as selling
expanded solutions to existing customers in commercial and personal
lines. In addition, catastrophe modeling services contributed to
the growth. These increases were partially offset by a decrease in
certain transactional revenues. |
|
• |
Claims revenues declined 8.6% in
the quarter and 2.9% on an OCC basis. Reported and OCC growth were
negatively impacted by the injunction ruling against roof
measurement solutions, as well as a decline in certain
transactional revenues in connection with the COVID-19 pandemic.
Normalizing for the impact of the injunction on roof measurement
solutions, Claims revenue would have grown 2.6% on an OCC basis.
Growth was primarily driven by repair cost estimating solutions
revenue, workers compensation claims resolution services, and
claims analytics revenue. |
Energy and Specialized Markets segment revenues increased 12.4%
in the quarter and declined 2.8% on an OCC basis. The Genscape
acquisition, environmental health and safety service solutions,
core research, and weather analytics solutions contributed to the
growth. The remaining decrease within the segment was primarily due
to declines in cost intelligence solutions' implementation projects
that did not reoccur, and consulting revenues in connection with
the COVID-19 pandemic.
Financial Services segment revenues decreased 14.1% in the
quarter and 2.7% on an OCC basis, resulting primarily from the
impact of the COVID-19 pandemic and the recent
dispositions.
2
Net Income and Adjusted EBITDA
During second-quarter 2020, net income increased 19.0%, driven
by cost discipline in the business, a reduction in travel expenses
as a result of COVID-19, the timing shift of a $10 million expense
related to annual long-term equity incentive grants that was
recognized in the first quarter of this year as compared to the
second quarter in the prior year, and a lower level of
acquisition-related costs (earn-outs). Adjusted EBITDA increased
14.5%, and 12.4% on an OCC basis. Normalizing for the impact of the
injunction on roof measurement solutions, OCC adjusted EBITDA would
have grown 15.4% for second-quarter 2020.
EBITDA and Adjusted EBITDA by Segment(in
millions)Note: Consolidated EBITDA and adjusted EBITDA are non-GAAP
measures. Margin is calculated as a percentage of revenues.
|
|
Three Months Ended June 30, |
|
|
|
EBITDA |
|
|
EBITDA Margin |
|
|
Adjusted EBITDA |
|
|
Adjusted EBITDA Growth |
|
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
Reported |
|
|
OCC |
|
|
2020 |
|
|
2019 |
|
Insurance |
|
$ |
282.3 |
|
|
$ |
242.7 |
|
|
|
58.0 |
% |
|
|
51.5 |
% |
|
$ |
284.7 |
|
|
$ |
247.3 |
|
|
|
15.1 |
% |
|
|
13.8 |
% |
|
|
58.5 |
% |
|
|
52.5 |
% |
Energy and Specialized
Markets |
|
|
52.3 |
|
|
|
40.3 |
|
|
|
33.9 |
|
|
|
29.3 |
|
|
|
52.3 |
|
|
|
42.7 |
|
|
|
22.2 |
|
|
|
6.2 |
|
|
|
33.9 |
|
|
|
31.1 |
|
Financial Services |
|
|
11.3 |
|
|
|
14.1 |
|
|
|
29.7 |
|
|
|
31.9 |
|
|
|
11.3 |
|
|
|
14.1 |
|
|
|
(19.8 |
) |
|
|
5.8 |
|
|
|
29.7 |
|
|
|
31.9 |
|
Consolidated |
|
$ |
345.9 |
|
|
$ |
297.1 |
|
|
|
51.0 |
|
|
|
45.5 |
|
|
$ |
348.3 |
|
|
$ |
304.1 |
|
|
|
14.5 |
|
|
|
12.4 |
|
|
|
51.3 |
|
|
|
46.6 |
|
|
|
Six Months Ended June 30, |
|
|
|
EBITDA |
|
|
EBITDA Margin |
|
|
Adjusted EBITDA |
|
|
Adjusted EBITDA Growth |
|
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
Reported |
|
|
OCC |
|
|
2020 |
|
|
2019 |
|
Insurance |
|
$ |
554.7 |
|
|
$ |
474.0 |
|
|
|
56.8 |
% |
|
|
51.3 |
% |
|
$ |
541.4 |
|
|
$ |
486.0 |
|
|
|
11.4 |
% |
|
|
10.9 |
% |
|
|
55.5 |
% |
|
|
52.6 |
% |
Energy and Specialized
Markets |
|
|
102.5 |
|
|
|
77.5 |
|
|
|
32.6 |
|
|
|
29.2 |
|
|
|
102.5 |
|
|
|
82.5 |
|
|
|
24.2 |
|
|
|
4.0 |
|
|
|
32.6 |
|
|
|
31.0 |
|
Financial Services |
|
|
25.9 |
|
|
|
27.4 |
|
|
|
33.1 |
|
|
|
31.3 |
|
|
|
22.4 |
|
|
|
27.4 |
|
|
|
(18.0 |
) |
|
|
10.5 |
|
|
|
28.7 |
|
|
|
31.3 |
|
Consolidated |
|
$ |
683.1 |
|
|
$ |
578.9 |
|
|
|
49.9 |
|
|
|
45.3 |
|
|
$ |
666.3 |
|
|
$ |
595.9 |
|
|
|
11.8 |
|
|
|
9.9 |
|
|
|
48.7 |
|
|
|
46.6 |
|
Earnings Per Share
Diluted EPS increased 20.0% to $1.08 for the second quarter of
2020 due to cost discipline in the business, a reduction in travel
expenses as a result of COVID-19, the above-mentioned timing shift
in expense related to annual long-term equity incentive grants, and
a decrease in acquisition-related costs (earn-outs). Diluted
adjusted EPS grew 17.3% to $1.29 for the second quarter of 2020,
reflecting cost discipline in the business and a lower average
share count.
Cash Flow
Net cash provided by operating activities was $250 million for
the second quarter of 2020, up 24.6%. Capital expenditures were
$57 million for the second quarter of 2020, up 20.9%. Free
cash flow was $193 million for the second quarter of 2020, up
25.7%, primarily due to an increase in customer collections and
operating profit, a reduction in travel payments as a result of
COVID-19, as well as a deferral of federal income taxes and certain
employer payroll taxes resulting from the CARES Act, partially
offset by earnout payments of $65.1 million.
Free cash flow represented 55.4% of adjusted EBITDA for the
second quarter of 2020, compared with 50.4% in the prior-year
period.
Senior Notes
During the second quarter of 2020, the company completed an
issuance of $500 million aggregate principal amount of 3.625%
senior notes due in 2050, at an issue price of 98.97% for an
effective yield of 3.682%. The company used the proceeds to repay
amounts outstanding under its revolving credit facility and for
general corporate purposes.
Dividend
On June 30, 2020, Verisk paid a cash dividend of 27 cents per
share of common stock issued and outstanding to the holders of
record as of June 15, 2020.
On July 29, 2020, Verisk's Board of Directors approved a cash
dividend of 27 cents per share of common stock issued and
outstanding, payable on September 30, 2020, to holders of record as
of September 15, 2020.
Share Repurchases
Including the accelerated share repurchase (ASR) settled in the
second quarter of 2020, the company repurchased approximately 0.5
million shares at an average price of $152.59, for a total cost of
$75 million for the second quarter of 2020. On June 30, 2020,
the company had $379 million remaining under its share repurchase
authorization.
3
Conference Call
Verisk’s management team will host a live audio webcast on
Wednesday, August 5, 2020, at 8:30 a.m. EDT (5:30 a.m. PDT, 1:30
p.m. BST) to discuss the financial results and business highlights.
All interested parties are invited to listen to the live event via
webcast on the Verisk investor website at
http://investor.verisk.com. The discussion is also available
through dial-in number 1-877-755-3792 for U.S./Canada participants
or 1-512-961-6560 for international participants.
A replay of the webcast will be available for 30 days on the
Verisk investor website and also through the conference call number
1-855-859-2056 for U.S./Canada participants or 1-404-537-3406 for
international participants using conference ID #8981659.
About Verisk
Verisk (Nasdaq:VRSK) is a leading data analytics provider
serving customers in insurance, energy and specialized markets, and
financial services. Using advanced technologies to collect and
analyze billions of records, Verisk draws on unique data assets and
deep domain expertise to provide first-to-market innovations that
are integrated into customer workflows. Verisk offers predictive
analytics and decision support solutions to customers in rating,
underwriting, claims, catastrophe and weather risk, global risk
analytics, natural resources intelligence, economic forecasting,
and many other fields. Around the world, Verisk helps customers
protect people, property, and financial assets.
Headquartered in Jersey City, N.J., Verisk operates in 30
countries and is a member of Standard & Poor’s S&P 500®
Index and Nasdaq 100 Index. For more information, please visit
www.verisk.com.
Contact:
Investor RelationsStacey BrodbarHead of
Investor RelationsVerisk201-469-4327IR@verisk.com
MediaJoe Madden Verisk Public Relations
201-232-4486 joseph.madden@verisk.com
Forward-Looking Statements
This release contains forward-looking statements. These
statements relate to future events or to future financial
performance and involve known and unknown risks, uncertainties, and
other factors that may cause Verisk's actual results, levels
of activity, performance, or achievements to be materially
different from any future results, levels of activity, performance,
or achievements expressed or implied by these forward-looking
statements. This includes, but is not limited to, the potential
impacts of the COVID-19 pandemic on its operations and
financial performance, its expectation and ability to pay a
cash dividend on common stock in the future, subject to the
determination by the Board of Directors and based on an evaluation
of company earnings, financial condition and requirements, business
conditions, capital allocation determinations, and other factors,
risks, and uncertainties. In some cases, you can identify
forward-looking statements by the use of words such as “may,”
“could,” “expect,” “intend,” “plan,” “target,” “seek,”
“anticipate,” “believe,” “estimate,” “predict,” “potential,” or
“continue” or the negative of these terms or other comparable
terminology. You should not place undue reliance on forward-looking
statements, because they involve known and unknown risks,
uncertainties, and other factors that are, in some cases, beyond
the company's control and that could materially affect actual
results, levels of activity, performance, or achievements.
Other factors that could materially affect actual results,
levels of activity, performance, or achievements can be found in
Verisk’s quarterly reports on Form 10-Q, annual reports on Form
10-K, and current reports on Form 8-K filed with the Securities and
Exchange Commission. If any of these risks or uncertainties
materialize or if its underlying assumptions prove to be
incorrect, actual results may vary significantly from what the
company projected. Any forward-looking statement in this
release reflects the company's current views with respect to
future events and is subject to these and other risks,
uncertainties, and assumptions relating to its operations,
results of operations, growth strategy, and liquidity. The
company assumes no obligation to publicly update or revise
these forward-looking statements for any reason, whether as a
result of new information, future events, or otherwise.
4
Notes Regarding the Use of Non-GAAP Financial
Measures
The company has provided certain non-GAAP financial information
as supplemental information regarding its operating results. These
measures are not in accordance with, or an alternative for, U.S.
GAAP and may be different from non-GAAP measures reported by other
companies. The company believes that its presentation of non-GAAP
measures provides useful information to management and investors
regarding certain financial and business trends relating to its
financial condition and results of operations. In addition, the
company’s management uses these measures for reviewing the
financial results of the company, for budgeting and planning
purposes, and for evaluating the performance of senior
management.
EBITDA, Adjusted EBITDA, and Adjusted EBITDA
Expenses: EBITDA represents GAAP net income adjusted for
(i) depreciation and amortization of fixed assets; (ii)
amortization of intangible assets; (iii) interest expense; and (iv)
provision for income taxes. Adjusted EBITDA represents EBITDA
adjusted for acquisition-related costs (earn-outs), gain/loss from
dispositions (which include businesses held for sale), nonrecurring
gain/loss, and interest income on the subordinated promissory note.
Adjusted EBITDA expenses represent adjusted EBITDA net of revenues.
The company believes these measures are useful and meaningful
because they allow for greater transparency regarding the company’s
operating performance and facilitate period-to-period
comparison.
Adjusted Net Income and Diluted Adjusted EPS:
Adjusted net income represents GAAP net income adjusted for (i)
amortization of intangible assets, net of tax; (ii)
acquisition-related costs (earn-outs), net of tax; (iii) gain/loss
from dispositions (which include businesses held for sale), net of
tax; (iv) nonrecurring gain/loss, net of tax; and (v) interest
income on the subordinated promissory note, net of tax. Diluted
adjusted EPS represents adjusted net income divided by
weighted-average diluted shares. The company believes these
measures are useful and meaningful because they allow evaluation of
the after-tax profitability of the company’s results excluding the
after-tax effect of acquisition-related costs and nonrecurring
items.
Free Cash Flow: Free cash flow represents net
cash provided by operating activities determined in accordance with
GAAP minus payments for capital expenditures. The company believes
free cash flow is an important measure of the recurring cash
generated by the company’s operations that may be available to
repay debt obligations, repurchase its stock, invest in future
growth through new business development activities, or make
acquisitions.
Organic Constant Currency (OCC): The company’s
operating results, such as, but not limited to, revenue and
adjusted EBITDA, reported in U.S. dollars are affected by foreign
currency exchange rate fluctuations because the underlying foreign
currencies in which it transacts change in value over time compared
with the U.S. dollar; accordingly, it presents certain constant
currency financial information to assess how the company performed
excluding the impact of foreign currency exchange rate
fluctuations. The company calculates constant currency by
translating comparable prior-year-period results at the currency
exchange rates used in the current period. The company defines
“organic” as operating results excluding the effect of recent
acquisitions and dispositions (which include businesses held for
sale) that have occurred over the past year. An acquisition is
included as organic at the beginning of the calendar quarter that
occurs after the one-year anniversary of the acquisition
date. Once an acquisition is included in its current-period
organic base, its comparable prior-year-period operating results
are also included to calculate organic growth. A disposition (which
includes a business held for sale) is excluded from organic at the
beginning of the calendar quarter in which the disposition occurs
(or when a business meets the held-for-sale criteria under U.S.
GAAP). Once a disposition is excluded from its current-period
organic base, its comparable prior-year-period operating results
are also excluded to calculate organic growth. The organic
presentation enables investors to assess the growth of the business
without the impact of recent acquisitions for which there is no
prior-year comparison. A disposition’s results are removed from all
prior periods presented to allow for comparability. The company
believes organic constant currency is a useful and meaningful
measure to enhance investors’ understanding of the continuing
operating performance of its business and to facilitate the
comparison of period-to-period performance because it excludes the
impact of foreign exchange rate movements, acquisitions, and
dispositions.
See page 10 for a reconciliation of consolidated adjusted
EBITDA and a segment results summary and a reconciliation of
adjusted EBITDA. See page 11 for a reconciliation of
segment adjusted EBITDA margin, a reconciliation of adjusted
EBITDA expenses, and a reconciliation of diluted adjusted EPS. See
page 12 for a reconciliation of net cash provided by
operating activities to free cash flow.
Attached Financial Statements
Please refer to the full Form 10-Q filing for the complete
financial statements and related notes.
5
VERISK ANALYTICS,
INC.CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)As of June 30, 2020 and
December 31,
2019
|
|
2020 |
|
|
2019 |
|
|
|
(in millions, except for share and per share
data) |
|
ASSETS: |
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
309.4 |
|
|
$ |
184.6 |
|
Accounts receivable, net of
allowance for doubtful accounts of $15.9 and $11.7,
respectively |
|
|
454.5 |
|
|
|
441.6 |
|
Prepaid expenses |
|
|
81.6 |
|
|
|
60.9 |
|
Income taxes receivable |
|
|
— |
|
|
|
25.9 |
|
Other current assets |
|
|
33.2 |
|
|
|
17.8 |
|
Current assets held for
sale |
|
|
— |
|
|
|
14.1 |
|
Total current assets |
|
|
878.7 |
|
|
|
744.9 |
|
Noncurrent assets: |
|
|
|
|
|
|
|
|
Fixed assets, net |
|
|
560.1 |
|
|
|
548.1 |
|
Operating lease right-of-use
assets, net |
|
|
242.3 |
|
|
|
218.6 |
|
Intangible assets, net |
|
|
1,264.3 |
|
|
|
1,398.9 |
|
Goodwill |
|
|
3,744.1 |
|
|
|
3,864.3 |
|
Deferred income tax
assets |
|
|
9.1 |
|
|
|
9.8 |
|
Other noncurrent assets |
|
|
309.3 |
|
|
|
159.8 |
|
Noncurrent assets held for
sale |
|
|
— |
|
|
|
110.8 |
|
Total assets |
|
$ |
7,007.9 |
|
|
$ |
7,055.2 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY: |
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued
liabilities |
|
$ |
322.4 |
|
|
$ |
375.0 |
|
Acquisition-related
liabilities |
|
|
12.1 |
|
|
|
111.2 |
|
Short-term debt and current
portion of long-term debt |
|
|
453.0 |
|
|
|
499.4 |
|
Deferred revenues |
|
|
617.5 |
|
|
|
440.1 |
|
Operating lease
liabilities |
|
|
37.9 |
|
|
|
40.6 |
|
Income taxes payable |
|
|
47.4 |
|
|
|
6.8 |
|
Current liabilities held for
sale |
|
|
— |
|
|
|
18.7 |
|
Total current liabilities |
|
|
1,490.3 |
|
|
|
1,491.8 |
|
Noncurrent liabilities: |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
2,690.7 |
|
|
|
2,651.6 |
|
Deferred income tax
liabilities |
|
|
348.2 |
|
|
|
356.0 |
|
Operating lease
liabilities |
|
|
245.6 |
|
|
|
208.1 |
|
Other liabilities |
|
|
57.0 |
|
|
|
48.8 |
|
Noncurrent liabilities held
for sale |
|
|
— |
|
|
|
38.1 |
|
Total liabilities |
|
|
4,831.8 |
|
|
|
4,794.4 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock, $.001 par value;
2,000,000,000 shares authorized; 544,003,038 shares issued;
162,520,246 and 163,161,564 shares outstanding, respectively |
|
|
0.1 |
|
|
|
0.1 |
|
Additional paid-in
capital |
|
|
2,432.8 |
|
|
|
2,369.1 |
|
Treasury stock, at cost,
381,482,792 and 380,841,474 shares, respectively |
|
|
(4,088.4 |
) |
|
|
(3,849.9 |
) |
Retained earnings |
|
|
4,488.8 |
|
|
|
4,228.4 |
|
Accumulated other
comprehensive losses |
|
|
(657.2 |
) |
|
|
(486.9 |
) |
Total stockholders’ equity |
|
|
2,176.1 |
|
|
|
2,260.8 |
|
Total liabilities and stockholders’ equity |
|
$ |
7,007.9 |
|
|
$ |
7,055.2 |
|
6
VERISK ANALYTICS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)For the Three and Six Months
Ended June 30, 2020 and 2019
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
(in millions, except for share and per share
data) |
|
Revenues |
|
$ |
678.8 |
|
|
$ |
652.6 |
|
|
$ |
1,368.6 |
|
|
$ |
1,277.6 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues (exclusive of items shown separately below) |
|
|
235.8 |
|
|
|
242.7 |
|
|
|
493.5 |
|
|
|
474.1 |
|
Selling, general and administrative |
|
|
96.4 |
|
|
|
112.3 |
|
|
|
208.5 |
|
|
|
223.7 |
|
Depreciation and amortization of fixed assets |
|
|
45.9 |
|
|
|
45.7 |
|
|
|
92.0 |
|
|
|
92.2 |
|
Amortization of intangible assets |
|
|
41.0 |
|
|
|
33.6 |
|
|
|
82.0 |
|
|
|
66.9 |
|
Other operating income |
|
|
— |
|
|
|
— |
|
|
|
(19.4 |
) |
|
|
— |
|
Total operating expenses |
|
|
419.1 |
|
|
|
434.3 |
|
|
|
856.6 |
|
|
|
856.9 |
|
Operating income |
|
|
259.7 |
|
|
|
218.3 |
|
|
|
512.0 |
|
|
|
420.7 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment loss and others, net |
|
|
(0.7 |
) |
|
|
(0.5 |
) |
|
|
(2.9 |
) |
|
|
(0.9 |
) |
Interest expense |
|
|
(34.2 |
) |
|
|
(30.5 |
) |
|
|
(67.6 |
) |
|
|
(62.4 |
) |
Total other expense, net |
|
|
(34.9 |
) |
|
|
(31.0 |
) |
|
|
(70.5 |
) |
|
|
(63.3 |
) |
Income before income
taxes |
|
|
224.8 |
|
|
|
187.3 |
|
|
|
441.5 |
|
|
|
357.4 |
|
Provision for income
taxes |
|
|
(45.8 |
) |
|
|
(36.9 |
) |
|
|
(90.8 |
) |
|
|
(72.6 |
) |
Net income |
|
$ |
179.0 |
|
|
$ |
150.4 |
|
|
$ |
350.7 |
|
|
$ |
284.8 |
|
Basic net income per
share |
|
$ |
1.10 |
|
|
$ |
0.92 |
|
|
$ |
2.16 |
|
|
$ |
1.74 |
|
Diluted net income per
share |
|
$ |
1.08 |
|
|
$ |
0.90 |
|
|
$ |
2.12 |
|
|
$ |
1.71 |
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
162,371,920 |
|
|
|
163,743,835 |
|
|
|
162,633,113 |
|
|
|
163,636,089 |
|
Diluted |
|
|
165,103,088 |
|
|
|
166,697,276 |
|
|
|
165,413,604 |
|
|
|
166,621,111 |
|
7
VERISK ANALYTICS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (UNAUDITED)For the Three and Six Months
Ended June 30, 2020 and
2019
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
(in millions) |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
179.0 |
|
|
$ |
150.4 |
|
|
$ |
350.7 |
|
|
$ |
284.8 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of fixed assets |
|
|
45.9 |
|
|
|
45.7 |
|
|
|
92.0 |
|
|
|
92.2 |
|
Amortization of intangible assets |
|
|
41.0 |
|
|
|
33.6 |
|
|
|
82.0 |
|
|
|
66.9 |
|
Amortization of debt issuance costs and original issue discount,
net of original issue premium |
|
|
0.5 |
|
|
|
1.0 |
|
|
|
0.8 |
|
|
|
1.9 |
|
Provision for doubtful accounts |
|
|
3.9 |
|
|
|
2.1 |
|
|
|
5.4 |
|
|
|
3.3 |
|
Gain on sale of assets |
|
|
— |
|
|
|
— |
|
|
|
(19.4 |
) |
|
|
— |
|
Stock-based compensation |
|
|
9.5 |
|
|
|
18.4 |
|
|
|
29.1 |
|
|
|
27.6 |
|
Realized gain on available-for-sale securities, net |
|
|
(0.5 |
) |
|
|
(0.2 |
) |
|
|
— |
|
|
|
(0.6 |
) |
Deferred income taxes |
|
|
(1.4 |
) |
|
|
(3.3 |
) |
|
|
(1.5 |
) |
|
|
— |
|
Loss on disposal of fixed assets, net |
|
|
0.1 |
|
|
|
— |
|
|
|
0.4 |
|
|
|
— |
|
Changes in assets and liabilities, net of effects from
acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
66.1 |
|
|
|
(8.1 |
) |
|
|
(30.4 |
) |
|
|
(89.7 |
) |
Prepaid expenses and other assets |
|
|
(35.3 |
) |
|
|
9.8 |
|
|
|
(53.8 |
) |
|
|
(10.7 |
) |
Operating lease right-of-use assets, net |
|
|
10.0 |
|
|
|
(8.5 |
) |
|
|
19.3 |
|
|
|
18.6 |
|
Income taxes |
|
|
25.6 |
|
|
|
(14.1 |
) |
|
|
66.6 |
|
|
|
11.2 |
|
Acquisition-related liabilities |
|
|
(63.5 |
) |
|
|
5.3 |
|
|
|
(63.3 |
) |
|
|
13.7 |
|
Accounts payable and accrued liabilities |
|
|
10.6 |
|
|
|
27.9 |
|
|
|
(51.4 |
) |
|
|
(7.9 |
) |
Deferred revenues |
|
|
(52.8 |
) |
|
|
(50.9 |
) |
|
|
184.8 |
|
|
|
166.8 |
|
Operating lease liabilities |
|
|
2.6 |
|
|
|
(9.4 |
) |
|
|
(7.9 |
) |
|
|
(18.5 |
) |
Other liabilities |
|
|
8.2 |
|
|
|
0.6 |
|
|
|
8.7 |
|
|
|
6.8 |
|
Net cash provided by operating activities |
|
|
249.5 |
|
|
|
200.3 |
|
|
|
612.1 |
|
|
|
566.4 |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions, net of cash acquired of $0 and $0, and $0 and $3.7,
respectively |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(69.1 |
) |
Proceeds from sale of assets |
|
|
— |
|
|
|
— |
|
|
|
23.1 |
|
|
|
— |
|
Purchase of investments in a nonpublic company |
|
|
— |
|
|
|
— |
|
|
|
(63.8 |
) |
|
|
— |
|
Capital expenditures |
|
|
(56.7 |
) |
|
|
(46.9 |
) |
|
|
(109.6 |
) |
|
|
(92.1 |
) |
Other investing activities, net |
|
|
(1.5 |
) |
|
|
(0.9 |
) |
|
|
4.6 |
|
|
|
(6.9 |
) |
Net cash used in investing activities |
|
|
(58.2 |
) |
|
|
(47.8 |
) |
|
|
(145.7 |
) |
|
|
(168.1 |
) |
8
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
(in millions) |
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayments of short-term debt, net |
|
|
(420.0 |
) |
|
|
(100.0 |
) |
|
|
(495.0 |
) |
|
|
(345.0 |
) |
Proceeds from issuance of short-term debt with original maturities
greater than three months |
|
|
— |
|
|
|
— |
|
|
|
20.0 |
|
|
|
— |
|
Repayments of short-term debt with original maturities greater than
three months |
|
|
(20.0 |
) |
|
|
— |
|
|
|
(20.0 |
) |
|
|
— |
|
Repayments of current portion of long-term debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(250.0 |
) |
Proceeds from issuance of long-term debt, inclusive of original
issue premium and net of original issue discount |
|
|
494.8 |
|
|
|
— |
|
|
|
494.8 |
|
|
|
397.9 |
|
Payment of debt issuance costs |
|
|
(5.6 |
) |
|
|
(1.2 |
) |
|
|
(5.6 |
) |
|
|
(4.1 |
) |
Repurchases of common stock |
|
|
(75.0 |
) |
|
|
(50.0 |
) |
|
|
(248.8 |
) |
|
|
(125.0 |
) |
Proceeds from stock options exercised |
|
|
22.9 |
|
|
|
20.7 |
|
|
|
42.1 |
|
|
|
32.3 |
|
Net share settlement from restricted stock awards |
|
|
(3.5 |
) |
|
|
(5.1 |
) |
|
|
(3.5 |
) |
|
|
(5.1 |
) |
Dividends paid |
|
|
(44.0 |
) |
|
|
(41.0 |
) |
|
|
(87.9 |
) |
|
|
(81.9 |
) |
Payment of contingent liability related to acquisitions |
|
|
(34.2 |
) |
|
|
— |
|
|
|
(34.2 |
) |
|
|
— |
|
Other financing activities, net |
|
|
(2.4 |
) |
|
|
(3.2 |
) |
|
|
(4.3 |
) |
|
|
(5.3 |
) |
Net cash used in financing activities |
|
|
(87.0 |
) |
|
|
(179.8 |
) |
|
|
(342.4 |
) |
|
|
(386.2 |
) |
Effect of exchange rate changes |
|
|
0.7 |
|
|
|
1.1 |
|
|
|
0.5 |
|
|
|
1.7 |
|
Increase (decrease) in cash and cash equivalents |
|
|
105.0 |
|
|
|
(26.2 |
) |
|
|
124.5 |
|
|
|
13.8 |
|
Cash and cash equivalents classified within current assets held for
sale, beginning of period |
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
Cash and cash equivalents, beginning of period |
|
|
204.4 |
|
|
|
179.5 |
|
|
|
184.6 |
|
|
|
139.5 |
|
Cash and cash equivalents, end of period |
|
$ |
309.4 |
|
|
$ |
153.3 |
|
|
$ |
309.4 |
|
|
$ |
153.3 |
|
Supplemental disclosures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes paid |
|
$ |
21.6 |
|
|
$ |
53.9 |
|
|
$ |
25.7 |
|
|
$ |
61.4 |
|
Interest paid |
|
$ |
41.1 |
|
|
$ |
45.3 |
|
|
$ |
63.7 |
|
|
$ |
60.6 |
|
Noncash investing and
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt issuance costs included in accounts payable and accrued
liabilities |
|
$ |
0.1 |
|
|
$ |
— |
|
|
$ |
0.1 |
|
|
$ |
— |
|
Deferred tax asset established on date of acquisition |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.1 |
|
Right-of-use assets obtained in exchange for new operating lease
liabilities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
247.6 |
|
Finance lease obligations |
|
$ |
0.1 |
|
|
$ |
7.7 |
|
|
$ |
1.6 |
|
|
$ |
9.4 |
|
Operating lease additions, net of terminations |
|
$ |
43.6 |
|
|
$ |
1.3 |
|
|
$ |
45.2 |
|
|
$ |
1.3 |
|
Tenant improvements |
|
$ |
— |
|
|
$ |
0.7 |
|
|
$ |
— |
|
|
$ |
0.7 |
|
Fixed assets included in accounts payable and accrued
liabilities |
|
$ |
0.7 |
|
|
$ |
0.4 |
|
|
$ |
0.7 |
|
|
$ |
0.4 |
|
Dividend payable included in other liabilities |
|
$ |
— |
|
|
$ |
0.1 |
|
|
$ |
0.4 |
|
|
$ |
0.2 |
|
Gain on sale of assets |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3.5 |
|
|
$ |
— |
|
Held for sale assets contributed to a nonpublic company |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
65.9 |
|
|
$ |
— |
|
9
Non-GAAP Reconciliations
Consolidated Adjusted EBITDA Reconciliation(in
millions)Note: Adjusted EBITDA is a non-GAAP measure. Margin is
calculated as a percentage of consolidated revenues.
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
Total |
|
|
Margin |
|
|
Total |
|
|
Margin |
|
|
Total |
|
|
Margin |
|
|
Total |
|
|
Margin |
|
Net income |
|
$ |
179.0 |
|
|
|
26.4 |
% |
|
$ |
150.4 |
|
|
|
23.0 |
% |
|
$ |
350.7 |
|
|
|
25.6 |
% |
|
$ |
284.8 |
|
|
|
22.3 |
% |
Depreciation and amortization
of fixed assets |
|
|
45.9 |
|
|
|
6.8 |
|
|
|
45.7 |
|
|
|
7.0 |
|
|
|
92.0 |
|
|
|
6.7 |
|
|
|
92.2 |
|
|
|
7.2 |
|
Amortization of intangible
assets |
|
|
41.0 |
|
|
|
6.0 |
|
|
|
33.6 |
|
|
|
5.2 |
|
|
|
82.0 |
|
|
|
6.0 |
|
|
|
66.9 |
|
|
|
5.2 |
|
Interest expense |
|
|
34.2 |
|
|
|
5.0 |
|
|
|
30.5 |
|
|
|
4.7 |
|
|
|
67.6 |
|
|
|
5.0 |
|
|
|
62.4 |
|
|
|
4.9 |
|
Provision for income
taxes |
|
|
45.8 |
|
|
|
6.8 |
|
|
|
36.9 |
|
|
|
5.6 |
|
|
|
90.8 |
|
|
|
6.6 |
|
|
|
72.6 |
|
|
|
5.7 |
|
EBITDA |
|
|
345.9 |
|
|
|
51.0 |
|
|
|
297.1 |
|
|
|
45.5 |
|
|
|
683.1 |
|
|
|
49.9 |
|
|
|
578.9 |
|
|
|
45.3 |
|
Acquisition-related costs
(earn-outs) |
|
|
2.4 |
|
|
|
0.3 |
|
|
|
7.0 |
|
|
|
1.1 |
|
|
|
2.6 |
|
|
|
0.2 |
|
|
|
17.0 |
|
|
|
1.3 |
|
Gain from dispositions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19.4 |
) |
|
|
(1.4 |
) |
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
|
|
348.3 |
|
|
|
51.3 |
|
|
|
304.1 |
|
|
|
46.6 |
|
|
|
666.3 |
|
|
|
48.7 |
|
|
|
595.9 |
|
|
|
46.6 |
|
Adjusted EBITDA from
acquisitions and dispositions |
|
|
(11.1 |
) |
|
|
1.2 |
|
|
|
(3.3 |
) |
|
|
0.5 |
|
|
|
(19.1 |
) |
|
|
1.7 |
|
|
|
(5.2 |
) |
|
|
0.6 |
|
Organic adjusted EBITDA |
|
$ |
337.2 |
|
|
|
52.5 |
|
|
$ |
300.8 |
|
|
|
47.1 |
|
|
$ |
647.2 |
|
|
|
50.4 |
|
|
$ |
590.7 |
|
|
|
47.2 |
|
Segment Results Summary and Adjusted EBITDA
Reconciliation(in millions)Note: Organic revenues and
adjusted EBITDA are non-GAAP measures.
|
|
Three Months Ended June 30, 2020 |
|
|
Three Months Ended June 30, 2019 |
|
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
Revenues |
|
$ |
486.4 |
|
|
$ |
154.4 |
|
|
$ |
38.0 |
|
|
$ |
471.0 |
|
|
$ |
137.3 |
|
|
$ |
44.3 |
|
Revenues from acquisitions and
dispositions |
|
|
(14.1 |
) |
|
|
(22.8 |
) |
|
|
(0.1 |
) |
|
|
(9.5 |
) |
|
|
— |
|
|
|
(5.0 |
) |
Organic revenues |
|
$ |
472.3 |
|
|
$ |
131.6 |
|
|
$ |
37.9 |
|
|
$ |
461.5 |
|
|
$ |
137.3 |
|
|
$ |
39.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
282.3 |
|
|
$ |
52.3 |
|
|
$ |
11.3 |
|
|
$ |
242.7 |
|
|
$ |
40.3 |
|
|
$ |
14.1 |
|
Acquisition-related costs
(earn-outs) |
|
|
2.4 |
|
|
|
— |
|
|
|
— |
|
|
|
4.6 |
|
|
|
2.4 |
|
|
|
— |
|
Adjusted EBITDA |
|
|
284.7 |
|
|
|
52.3 |
|
|
|
11.3 |
|
|
|
247.3 |
|
|
|
42.7 |
|
|
|
14.1 |
|
Adjusted EBITDA from
acquisitions and dispositions |
|
|
(4.0 |
) |
|
|
(7.7 |
) |
|
|
0.6 |
|
|
|
(0.4 |
) |
|
|
— |
|
|
|
(2.9 |
) |
Organic adjusted EBITDA |
|
$ |
280.7 |
|
|
$ |
44.6 |
|
|
$ |
11.9 |
|
|
$ |
246.9 |
|
|
$ |
42.7 |
|
|
$ |
11.2 |
|
|
|
Six Months Ended June 30, 2020 |
|
|
Six Months Ended June 30, 2019 |
|
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
Revenues |
|
$ |
975.8 |
|
|
$ |
314.5 |
|
|
$ |
78.3 |
|
|
$ |
924.5 |
|
|
$ |
265.8 |
|
|
$ |
87.3 |
|
Revenues from acquisitions and
dispositions |
|
|
(31.8 |
) |
|
|
(51.6 |
) |
|
|
(1.8 |
) |
|
|
(17.0 |
) |
|
|
— |
|
|
|
(10.4 |
) |
Organic revenues |
|
$ |
944.0 |
|
|
$ |
262.9 |
|
|
$ |
76.5 |
|
|
$ |
907.5 |
|
|
$ |
265.8 |
|
|
$ |
76.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
554.7 |
|
|
$ |
102.5 |
|
|
$ |
25.9 |
|
|
$ |
474.0 |
|
|
$ |
77.5 |
|
|
$ |
27.4 |
|
Acquisition-related costs
(earn-outs) |
|
|
2.6 |
|
|
|
— |
|
|
|
— |
|
|
|
12.0 |
|
|
|
5.0 |
|
|
|
— |
|
Gain from dispositions |
|
|
(15.9 |
) |
|
|
— |
|
|
|
(3.5 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
|
|
541.4 |
|
|
|
102.5 |
|
|
|
22.4 |
|
|
|
486.0 |
|
|
|
82.5 |
|
|
|
27.4 |
|
Adjusted EBITDA from
acquisitions and dispositions |
|
|
(3.3 |
) |
|
|
(16.3 |
) |
|
|
0.5 |
|
|
|
0.2 |
|
|
|
1.0 |
|
|
|
(6.4 |
) |
Organic adjusted EBITDA |
|
$ |
538.1 |
|
|
$ |
86.2 |
|
|
$ |
22.9 |
|
|
$ |
486.2 |
|
|
$ |
83.5 |
|
|
$ |
21.0 |
|
10
Segment Adjusted EBITDA Margin
ReconciliationNote: Segment adjusted EBITDA margin is
calculated as a percentage of respective segment revenues.
|
|
Three Months Ended June 30, 2020 |
|
|
Three Months Ended June 30, 2019 |
|
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
EBITDA margin |
|
|
58.0 |
% |
|
|
33.9 |
% |
|
|
29.7 |
% |
|
|
51.5 |
% |
|
|
29.3 |
% |
|
|
31.9 |
% |
Acquisition-related costs
(earn-outs) |
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
1.0 |
|
|
|
1.8 |
|
|
|
— |
|
Adjusted EBITDA margin |
|
|
58.5 |
|
|
|
33.9 |
|
|
|
29.7 |
|
|
|
52.5 |
|
|
|
31.1 |
|
|
|
31.9 |
|
|
|
Six Months Ended June 30, 2020 |
|
|
Six Months Ended June 30, 2019 |
|
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
EBITDA margin |
|
|
56.8 |
% |
|
|
32.6 |
% |
|
|
33.1 |
% |
|
|
51.3 |
% |
|
|
29.2 |
% |
|
|
31.3 |
% |
Acquisition-related costs
(earn-outs) |
|
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
1.3 |
|
|
|
1.8 |
|
|
|
— |
|
Gain from dispositions |
|
|
(1.6 |
) |
|
|
— |
|
|
|
(4.4 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA margin |
|
|
55.5 |
|
|
|
32.6 |
|
|
|
28.7 |
|
|
|
52.6 |
|
|
|
31.0 |
|
|
|
31.3 |
|
Consolidated Adjusted EBITDA Expense
Reconciliation(in millions)Note: Adjusted EBITDA expenses
are a non-GAAP measure.
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Operating
expenses |
|
$ |
419.1 |
|
|
$ |
434.3 |
|
|
$ |
856.6 |
|
|
$ |
856.9 |
|
Depreciation and amortization
of fixed assets |
|
|
(45.9 |
) |
|
|
(45.7 |
) |
|
|
(92.0 |
) |
|
|
(92.2 |
) |
Amortization of intangible
assets |
|
|
(41.0 |
) |
|
|
(33.6 |
) |
|
|
(82.0 |
) |
|
|
(66.9 |
) |
Investment loss and others,
net |
|
|
0.7 |
|
|
|
0.5 |
|
|
|
2.9 |
|
|
|
0.9 |
|
Acquisition-related costs
(earn-outs) |
|
|
(2.4 |
) |
|
|
(7.0 |
) |
|
|
(2.6 |
) |
|
|
(17.0 |
) |
Gain from dispositions |
|
|
— |
|
|
|
— |
|
|
|
19.4 |
|
|
|
— |
|
Adjusted EBITDA expenses |
|
$ |
330.5 |
|
|
$ |
348.5 |
|
|
$ |
702.3 |
|
|
$ |
681.7 |
|
Diluted Adjusted EPS Reconciliation(in
millions, except per share amounts)Note: Diluted adjusted EPS is a
non-GAAP measure.
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net income |
|
$ |
179.0 |
|
|
$ |
150.4 |
|
|
$ |
350.7 |
|
|
$ |
284.8 |
|
plus: Amortization of
intangibles |
|
|
41.0 |
|
|
|
33.6 |
|
|
|
82.0 |
|
|
|
66.9 |
|
less: Income tax effect on
amortization of intangibles |
|
|
(9.0 |
) |
|
|
(7.0 |
) |
|
|
(18.0 |
) |
|
|
(14.1 |
) |
plus: Acquisition-related
costs and interest expense (earn-outs) |
|
|
2.4 |
|
|
|
7.1 |
|
|
|
2.6 |
|
|
|
17.6 |
|
less: Income tax effect on
acquisition-related costs and interest expense (earn-outs) |
|
|
(0.5 |
) |
|
|
(0.3 |
) |
|
|
(0.6 |
) |
|
|
(0.7 |
) |
less: Gain from
dispositions |
|
|
— |
|
|
|
— |
|
|
|
(19.4 |
) |
|
|
— |
|
plus: Income tax effect on
gain from dispositions |
|
|
— |
|
|
|
— |
|
|
|
9.6 |
|
|
|
— |
|
Adjusted net income |
|
$ |
212.9 |
|
|
$ |
183.8 |
|
|
$ |
406.9 |
|
|
$ |
354.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS |
|
$ |
1.08 |
|
|
$ |
0.90 |
|
|
$ |
2.12 |
|
|
$ |
1.71 |
|
Diluted adjusted EPS |
|
$ |
1.29 |
|
|
$ |
1.10 |
|
|
$ |
2.46 |
|
|
$ |
2.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average diluted
shares outstanding |
|
|
165.1 |
|
|
|
166.7 |
|
|
|
165.4 |
|
|
|
166.6 |
|
11
Free Cash Flow Reconciliation(in millions)Note:
Free cash flow is a non-GAAP measure.
|
|
Three Months Ended |
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
June 30, |
|
|
|
|
|
|
June 30, |
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
Change |
|
|
2020 |
|
|
2019 |
|
|
Change |
|
Net cash provided
by operating activities |
|
$ |
249.5 |
|
|
$ |
200.3 |
|
|
|
24.6 |
% |
|
$ |
612.1 |
|
|
$ |
566.4 |
|
|
|
8.1 |
% |
Capital expenditures |
|
|
(56.7 |
) |
|
|
(46.9 |
) |
|
|
20.9 |
% |
|
|
(109.6 |
) |
|
|
(92.1 |
) |
|
|
19.0 |
% |
Free cash flow |
|
$ |
192.8 |
|
|
$ |
153.4 |
|
|
|
25.7 |
% |
|
$ |
502.5 |
|
|
$ |
474.3 |
|
|
|
5.9 |
% |
Verisk Analytics (NASDAQ:VRSK)
Historical Stock Chart
From Aug 2024 to Sep 2024
Verisk Analytics (NASDAQ:VRSK)
Historical Stock Chart
From Sep 2023 to Sep 2024