Verisk (Nasdaq:VRSK), a leading global data analytics
provider, today announced results for the third quarter ended
September 30, 2021.
Scott Stephenson, chairman, president, and CEO, said, "Verisk's
third quarter results reflect the continued strength of
our subscription-based business model and the value we consistently
deliver to customers. We remain intently focused on
enhancing value for our shareholders and all Verisk
stakeholders, and we are actively engaged in
reviewing value creation strategies and optimization
alternatives for certain businesses. As we've said previously, we
believe that portfolio changes are probable within the next
two to three quarters, subject to market conditions."
Lee Shavel, CFO and group president, said, "Verisk delivered OCC
revenue growth of 5.1%, led by continued strength in our insurance
business. Our capital allocation process directs investment to
the highest growth and return on capital opportunities and
returning excess capital to shareholders through dividends and
share repurchases. This discipline also encompasses the active
management of our business portfolio as we have demonstrated in
previous actions."
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 |
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
|
September 30, |
|
|
|
|
|
|
September 30, |
|
|
|
|
|
|
|
2021 |
|
|
2020 |
|
|
Change |
|
|
2021 |
|
|
2020 |
|
|
Change |
|
Revenues |
|
$ |
759.0 |
|
|
$ |
702.7 |
|
|
|
8.0 |
% |
|
$ |
2,232.6 |
|
|
$ |
2,071.2 |
|
|
|
7.8 |
% |
Net income attributable to
Verisk |
|
|
201.7 |
|
|
|
185.8 |
|
|
|
8.6 |
|
|
|
524.3 |
|
|
|
536.5 |
|
|
|
(2.3 |
) |
Adjusted EBITDA |
|
|
378.8 |
|
|
|
366.2 |
|
|
|
3.5 |
|
|
|
1,095.1 |
|
|
|
1,032.5 |
|
|
|
6.1 |
|
Diluted EPS attributable to
Verisk |
|
|
1.24 |
|
|
|
1.12 |
|
|
|
10.7 |
|
|
|
3.21 |
|
|
|
3.24 |
|
|
|
(0.9 |
) |
Diluted adjusted EPS |
|
|
1.44 |
|
|
|
1.32 |
|
|
|
9.1 |
|
|
|
3.85 |
|
|
|
3.78 |
|
|
|
1.9 |
|
Net cash provided by operating
activities |
|
|
285.2 |
|
|
|
207.1 |
|
|
|
37.7 |
|
|
|
967.1 |
|
|
|
819.2 |
|
|
|
18.1 |
|
Free cash flow |
|
|
223.8 |
|
|
|
142.3 |
|
|
|
57.3 |
|
|
|
784.0 |
|
|
|
644.8 |
|
|
|
21.6 |
|
Revenues
Consolidated revenues increased 8.0%, and 5.1% on an OCC
basis, for third-quarter 2021. In late March 2020, we analyzed
our solutions and services to assess the impact of COVID-19 on our
revenue streams. We did not identify any material impact
stemming from COVID-19 on approximately 85% of our revenues as
much of these revenues are subscription-based and subject to
long-term contracts. These revenues increased 5.6% on an
OCC basis in the third quarter of 2021. Of the remaining
15%, we have identified specific solutions and services,
largely transactional in nature, that have been impacted by
COVID-19. These revenues increased 1.6% on an OCC basis in
third-quarter 2021 as compared to COVID-impacted declines
in the prior-year period.
Revenues and Revenue Growth by Segment(in
millions)
|
|
|
|
|
|
|
|
|
|
Revenue Growth |
|
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
September 30, |
|
|
September 30, 2021 |
|
|
|
2021 |
|
|
2020 |
|
|
Reported |
|
|
OCC |
|
Underwriting &
rating |
|
$ |
390.5 |
|
|
$ |
353.6 |
|
|
|
10.4 |
% |
|
|
7.0 |
% |
Claims |
|
|
167.4 |
|
|
|
150.7 |
|
|
|
11.1 |
|
|
|
8.2 |
|
Insurance |
|
|
557.9 |
|
|
|
504.3 |
|
|
|
10.6 |
|
|
|
7.4 |
|
Energy and Specialized Markets |
|
|
165.9 |
|
|
|
158.1 |
|
|
|
5.0 |
|
|
|
2.5 |
|
Financial Services |
|
|
35.2 |
|
|
|
40.3 |
|
|
|
(12.7 |
) |
|
|
(13.5 |
) |
Revenues |
|
$ |
759.0 |
|
|
$ |
702.7 |
|
|
|
8.0 |
|
|
|
5.1 |
|
|
|
|
|
|
|
|
|
|
|
Revenue Growth |
|
|
|
Nine Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, 2021 |
|
|
|
2021 |
|
|
2020 |
|
|
Reported |
|
|
OCC |
|
Underwriting &
rating |
|
$ |
1,156.0 |
|
|
$ |
1,052.9 |
|
|
|
9.8 |
% |
|
|
6.6 |
% |
Claims |
|
|
487.5 |
|
|
|
438.9 |
|
|
|
11.1 |
|
|
|
8.1 |
|
Insurance |
|
|
1,643.5 |
|
|
|
1,491.8 |
|
|
|
10.2 |
|
|
|
7.1 |
|
Energy and Specialized Markets |
|
|
484.4 |
|
|
|
460.8 |
|
|
|
5.1 |
|
|
|
2.3 |
|
Financial Services |
|
|
104.7 |
|
|
|
118.6 |
|
|
|
(11.8 |
) |
|
|
(11.5 |
) |
Revenues |
|
$ |
2,232.6 |
|
|
$ |
2,071.2 |
|
|
|
7.8 |
|
|
|
4.9 |
|
Insurance segment revenues grew 10.6% in the third quarter
and 7.4% on an OCC basis.
- Underwriting
and rating revenues increased 10.4% in the quarter and
7.0% on an OCC basis, resulting primarily from annual
increases in price derived from continued enhancements to the
content of the solutions within our industry-standard
insurance programs, as well as selling expanded solutions to
existing customers in commercial and personal lines. In addition,
catastrophe modeling services and our international software
solutions contributed to the growth.
- Claims revenues
grew 11.1% in the quarter and 8.2% on an OCC basis.
Growth was primarily driven by our repair cost estimating solutions
revenue and our claims analytics revenue.
Energy and Specialized Markets segment revenue increased
5.0% in the quarter and 2.5% on an OCC basis. Growth
was primarily driven by consulting and environmental health
and safety service revenues.
Financial Services segment revenue decreased 12.7% in the
quarter and 13.5% on an OCC basis, primarily due to
certain contract transitions, projects that did not reoccur, and
lower bankruptcy volumes. These declines more than offset solid
growth in spend informed analytics revenues.
Net Income and Adjusted EBITDA
During third-quarter 2021, net income attributable to
Verisk increased 8.6%. Adjusted EBITDA increased 3.5%,
and 2.1% on an OCC basis.
EBITDA and Adjusted EBITDA by Segment(in
millions)Note: Adjusted EBITDA is a non-GAAP measure. Margin
is calculated as a percentage of revenues. See "Non-GAAP
Reconciliations" below for a reconciliation to the nearest
GAAP measure.
|
|
Three Months Ended September 30, |
|
|
|
EBITDA |
|
|
EBITDA Margin |
|
|
Adjusted EBITDA |
|
|
Adjusted EBITDA Growth |
|
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Reported |
|
|
OCC |
|
|
2021 |
|
|
2020 |
|
Insurance |
|
$ |
311.5 |
|
|
$ |
292.1 |
|
|
|
55.8 |
% |
|
|
57.9 |
% |
|
$ |
311.6 |
|
|
$ |
292.1 |
|
|
|
6.7 |
% |
|
|
4.8 |
% |
|
|
55.9 |
% |
|
|
57.9 |
% |
Energy and
Specialized Markets |
|
|
60.5 |
|
|
|
62.4 |
|
|
|
36.5 |
|
|
|
39.5 |
|
|
|
60.5 |
|
|
|
62.4 |
|
|
|
(3.0 |
) |
|
|
(2.6 |
) |
|
|
36.5 |
|
|
|
39.5 |
|
Financial
Services |
|
|
6.7 |
|
|
|
11.7 |
|
|
|
19.0 |
|
|
|
28.9 |
|
|
|
6.7 |
|
|
|
11.7 |
|
|
|
(42.5 |
) |
|
|
(41.9 |
) |
|
|
19.0 |
|
|
|
28.9 |
|
Consolidated |
|
$ |
378.7 |
|
|
$ |
366.2 |
|
|
|
49.9 |
|
|
|
52.1 |
|
|
$ |
378.8 |
|
|
$ |
366.2 |
|
|
|
3.5 |
|
|
|
2.1 |
|
|
|
49.9 |
|
|
|
52.1 |
|
|
|
Nine Months Ended September 30, |
|
|
|
EBITDA |
|
|
EBITDA Margin |
|
|
Adjusted EBITDA |
|
|
Adjusted EBITDA Growth |
|
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Reported |
|
|
OCC |
|
|
2021 |
|
|
2020 |
|
Insurance |
|
$ |
911.2 |
|
|
$ |
848.3 |
|
|
|
55.4 |
% |
|
|
56.9 |
% |
|
$ |
911.3 |
|
|
$ |
835.0 |
|
|
|
9.1 |
% |
|
|
6.5 |
% |
|
|
55.4 |
% |
|
|
56.0 |
% |
Energy and
Specialized Markets |
|
|
171.8 |
|
|
|
163.4 |
|
|
|
35.5 |
|
|
|
35.5 |
|
|
|
171.8 |
|
|
|
163.4 |
|
|
|
5.2 |
|
|
|
3.7 |
|
|
|
35.5 |
|
|
|
35.5 |
|
Financial
Services |
|
|
12.0 |
|
|
|
37.6 |
|
|
|
11.4 |
|
|
|
31.7 |
|
|
|
12.0 |
|
|
|
34.1 |
|
|
|
(64.9 |
) |
|
|
(64.0 |
) |
|
|
11.4 |
|
|
|
28.7 |
|
Consolidated |
|
$ |
1,095.0 |
|
|
$ |
1,049.3 |
|
|
|
49.0 |
|
|
|
50.7 |
|
|
$ |
1,095.1 |
|
|
$ |
1,032.5 |
|
|
|
6.1 |
|
|
|
3.8 |
|
|
|
49.1 |
|
|
|
49.8 |
|
Earnings Per Share and Diluted Adjusted Earnings Per
Share
Diluted EPS attributable to Verisk increased 10.7% to
$1.24 for the third quarter of 2021 primarily due to organic
growth within the business, lower interest expense, and a
lower average share count.
Diluted adjusted EPS increased 9.1% to $1.44 for
the third quarter of 2021 primarily due to organic growth
within the business, lower interest expense, and a lower
average share count.
Cash Flow and Free Cash Flow
Net cash provided by operating activities was
$285.2 million for the third quarter of 2021,
up 37.7%. Capital expenditures were $61.4 million
for the third quarter, down 5.2%. Free cash flow was
$223.8 million, up 57.3% primarily due to the prior
year deferral of federal income tax payments from the second
quarter of 2020 to the third quarter of 2020 resulting from the
CARES Act and an increase in operating profit and customer
collections, partially offset by the prior year deferral of certain
employer payroll taxes resulting from the CARES Act. Free cash
flow is a non-GAAP measure. See "Non-GAAP
reconciliations" below for a reconciliation to the nearest
GAAP measure.
Dividend
On September 30, 2021, we paid a cash dividend of 29 cents
per share of common stock issued and outstanding to the holders of
record as of September 15, 2021.
On October 27, 2021, our Board of Directors approved a cash
dividend of 29 cents per share of common stock issued and
outstanding, payable on December 31, 2021, to holders of record as
of December 15, 2021.
Share Repurchases
Including the accelerated share repurchase (ASR) settled in the
third quarter of 2021, we repurchased approximately
798 thousand shares at an average price of $187.91, for a
total cost of $150.0 million for the third quarter of 2021. On
August 17, 2021, our Board of Directors approved an additional
authorization of $500.0 million. On September 30, 2021, we had
$678.8 million remaining under our share repurchase
authorization.
Conference Call
Our management team will host a live audio webcast to discuss
the financial results and business highlights on Wednesday,
November 3, 2021, at 8:30 a.m. EDT (5:30 a.m. PDT, 1:30 p.m. BST).
All interested parties are invited to listen to the live event via
webcast on our investor website at http://investor.verisk.com.
The discussion will also be available through dial-in number
1-877-755-3792 for U.S./Canada participants or 512-961-6560 for
international participants.
A replay of the webcast will be available for 30 days on our
investor website and through the conference call number
1-855-859-2056 for U.S./Canada participants or 404-537-3406 for
international participants using Conference ID #3794982.
About Verisk
We (Nasdaq:VRSK) provide predictive analytics and decision
support solutions to customers in the insurance, energy and
specialized markets, and financial services industries. More than
70 percent of the FORTUNE 100 uses our advanced technologies to
manage risks, make better decisions and improve operating
efficiency. Our analytic solutions address insurance underwriting
and claims, fraud, regulatory compliance, natural resources,
catastrophes, economic forecasting, geopolitical risks, as well as
environmental, social, and governance (ESG) matters. Celebrating
our 50th anniversary, we continue to make the world
better, safer, and stronger, and foster an inclusive and
diverse culture where all team members feel they belong. With more
than 100 offices in nearly 35 countries, we consistently earn
certification by Great Place to Work®. For more, please visit
our website at www.verisk.com or follow
our social media profiles on LinkedIn, Twitter, Facebook, and
YouTube.
Contact:Investor
Relations Stacey Brodbar Head of Investor
Relations Verisk 201-469-4327 IR@verisk.com
MediaAlberto CanalVerisk Public
Relations201-469-2618Alberto.Canal@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 our 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,
our expectation and ability to pay a cash dividend on
our common stock in the future, subject to the determination
by our Board of Directors and based on an evaluation of our
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
our 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
our 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 our underlying assumptions prove to be incorrect,
actual results may vary significantly from what we projected. Any
forward-looking statement in this release reflects our current
views with respect to future events and is subject to these and
other risks, uncertainties, and assumptions relating to our
operations, results of operations, growth strategy, and liquidity.
We assume 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.
Notes Regarding the Use of Non-GAAP Financial
Measures
We have provided certain non-GAAP financial information as
supplemental information regarding our 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. We believe that our presentation of
non-GAAP measures provides useful information to management and
investors regarding certain financial and business trends relating
to our financial condition and results of operations. In addition,
our management uses these measures for reviewing our financial
results, 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 includes businesses held for sale), and
nonrecurring gain/loss. Adjusted EBITDA expenses represent adjusted
EBITDA net of revenues. We believe these measures are useful
and meaningful because they help us allocate resources, make
business decisions, allow for greater transparency regarding our
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 includes businesses held for sale), net of
tax; and (iv) nonrecurring gain/loss, net of tax. Diluted adjusted
EPS represents adjusted net income divided by weighted-average
diluted shares. We believe these measures are useful and
meaningful because they allow evaluation of the after-tax
profitability of our 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. We believe free
cash flow is an important measure of the recurring cash generated
by our operations that may be available to repay debt obligations,
repurchase our stock, invest in future growth through new business
development activities, or make acquisitions.
Organic: Organic is defined 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
subsequent to 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. We believe 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 and the impact of recent dispositions,
for which results are removed from all prior periods presented to
allow for comparability.
Organic Constant Currency (OCC) Growth Rate:
Our 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 we transact changes in value over
time compared with the U.S. dollar; accordingly,
we present certain constant currency financial
information to assess how we performed excluding the impact of
foreign currency exchange rate fluctuations. We
calculate constant currency by translating comparable
prior-year-period results at the currency exchange rates used in
the current period. We believe organic constant currency is a
useful and meaningful measure to enhance investors’ understanding
of the continuing operating performance of our 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.
VERISK ANALYTICS,
INC.CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)As of September 30, 2021 and
December 31, 2020
|
|
September 30, 2021 |
|
|
December 31, 2020 |
|
|
|
(in millions, except for share and per share
data) |
|
ASSETS: |
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
302.1 |
|
|
$ |
218.8 |
|
Accounts receivable, net of allowance for doubtful accounts of
$24.2 and $17.7, respectively |
|
|
468.0 |
|
|
|
432.4 |
|
Prepaid expenses |
|
|
102.9 |
|
|
|
81.2 |
|
Income taxes receivable |
|
|
21.0 |
|
|
|
25.4 |
|
Other current assets |
|
|
40.1 |
|
|
|
36.4 |
|
Total current assets |
|
|
934.1 |
|
|
|
794.2 |
|
Noncurrent assets: |
|
|
|
|
|
|
|
|
Fixed assets, net |
|
|
674.6 |
|
|
|
632.3 |
|
Operating lease right-of-use assets, net |
|
|
257.6 |
|
|
|
267.6 |
|
Intangible assets, net |
|
|
1,265.3 |
|
|
|
1,384.8 |
|
Goodwill |
|
|
4,129.5 |
|
|
|
4,108.1 |
|
Deferred income tax assets |
|
|
8.7 |
|
|
|
9.1 |
|
Other noncurrent assets |
|
|
392.7 |
|
|
|
365.7 |
|
Total assets |
|
$ |
7,662.5 |
|
|
$ |
7,561.8 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY: |
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
440.0 |
|
|
$ |
407.3 |
|
Short-term debt and current portion of long-term debt |
|
|
766.6 |
|
|
|
514.3 |
|
Deferred revenues |
|
|
584.4 |
|
|
|
466.7 |
|
Operating lease liabilities |
|
|
41.3 |
|
|
|
38.7 |
|
Income taxes payable |
|
|
10.8 |
|
|
|
3.8 |
|
Total current liabilities |
|
|
1,843.1 |
|
|
|
1,430.8 |
|
Noncurrent liabilities: |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
2,343.1 |
|
|
|
2,699.6 |
|
Deferred income tax liabilities |
|
|
434.8 |
|
|
|
396.9 |
|
Operating lease liabilities |
|
|
259.0 |
|
|
|
271.6 |
|
Other noncurrent liabilities |
|
|
48.7 |
|
|
|
64.7 |
|
Total liabilities |
|
|
4,928.7 |
|
|
|
4,863.6 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock, $.001 par value; 2,000,000,000 shares authorized;
544,003,038 shares issued; 161,415,070 and 162,817,526 shares
outstanding, respectively |
|
|
0.1 |
|
|
|
0.1 |
|
Additional paid-in capital |
|
|
2,567.4 |
|
|
|
2,490.9 |
|
Treasury stock, at cost, 382,587,968 and 381,185,512 shares,
respectively |
|
|
(4,570.2 |
) |
|
|
(4,179.3 |
) |
Retained earnings |
|
|
5,145.7 |
|
|
|
4,762.2 |
|
Accumulated other comprehensive losses |
|
|
(428.6 |
) |
|
|
(375.7 |
) |
Total Verisk stockholders' equity |
|
|
2,714.4 |
|
|
|
2,698.2 |
|
Noncontrolling interest |
|
|
19.4 |
|
|
|
— |
|
Total stockholders’ equity |
|
|
2,733.8 |
|
|
|
2,698.2 |
|
Total liabilities and stockholders’ equity |
|
$ |
7,662.5 |
|
|
$ |
7,561.8 |
|
VERISK ANALYTICS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)For the Three and Nine
Months Ended September 30, 2021 and 2020
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(in millions, except for share and per share
data) |
|
Revenues |
|
$ |
759.0 |
|
|
$ |
702.7 |
|
|
$ |
2,232.6 |
|
|
$ |
2,071.2 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues (exclusive of items shown separately below) |
|
|
265.3 |
|
|
|
240.0 |
|
|
|
792.6 |
|
|
|
733.4 |
|
Selling, general and administrative |
|
|
115.1 |
|
|
|
96.4 |
|
|
|
346.3 |
|
|
|
304.8 |
|
Depreciation and amortization of fixed assets |
|
|
52.1 |
|
|
|
49.4 |
|
|
|
153.9 |
|
|
|
141.3 |
|
Amortization of intangible assets |
|
|
37.6 |
|
|
|
41.5 |
|
|
|
133.1 |
|
|
|
123.6 |
|
Other operating income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19.4 |
) |
Total operating expenses |
|
|
470.1 |
|
|
|
427.3 |
|
|
|
1,425.9 |
|
|
|
1,283.7 |
|
Operating income |
|
|
288.9 |
|
|
|
275.4 |
|
|
|
806.7 |
|
|
|
787.5 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income (loss) and others, net |
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
1.3 |
|
|
|
(3.1 |
) |
Interest expense |
|
|
(29.9 |
) |
|
|
(35.3 |
) |
|
|
(96.8 |
) |
|
|
(102.9 |
) |
Total other expense, net |
|
|
(29.8 |
) |
|
|
(35.4 |
) |
|
|
(95.5 |
) |
|
|
(106.0 |
) |
Income before income
taxes |
|
|
259.1 |
|
|
|
240.0 |
|
|
|
711.2 |
|
|
|
681.5 |
|
Provision for income
taxes |
|
|
(54.2 |
) |
|
|
(54.2 |
) |
|
|
(186.7 |
) |
|
|
(145.0 |
) |
Net income |
|
|
204.9 |
|
|
|
185.8 |
|
|
|
524.5 |
|
|
|
536.5 |
|
Less: Net income attributable to noncontrolling interest |
|
|
(3.2 |
) |
|
|
— |
|
|
|
(0.2 |
) |
|
|
— |
|
Net income attributable to Verisk |
|
$ |
201.7 |
|
|
$ |
185.8 |
|
|
$ |
524.3 |
|
|
$ |
536.5 |
|
Basic net income per share
attributable to Verisk |
|
$ |
1.25 |
|
|
$ |
1.14 |
|
|
$ |
3.24 |
|
|
$ |
3.30 |
|
Diluted net income per share
attributable to Verisk |
|
$ |
1.24 |
|
|
$ |
1.12 |
|
|
$ |
3.21 |
|
|
$ |
3.24 |
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
161,366,544 |
|
|
|
162,502,191 |
|
|
|
162,005,382 |
|
|
|
162,589,473 |
|
Diluted |
|
|
162,792,791 |
|
|
|
165,731,226 |
|
|
|
163,425,349 |
|
|
|
165,519,899 |
|
VERISK ANALYTICS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (UNAUDITED)For the Three and Nine
Months Ended September 30, 2021 and 2020
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(in millions) |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
204.9 |
|
|
$ |
185.8 |
|
|
$ |
524.5 |
|
|
$ |
536.5 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of fixed assets |
|
|
52.1 |
|
|
|
49.4 |
|
|
|
153.9 |
|
|
|
141.3 |
|
Amortization of intangible assets |
|
|
37.6 |
|
|
|
41.5 |
|
|
|
133.1 |
|
|
|
123.6 |
|
Amortization of debt issuance costs and original issue discount,
net of original issue premium |
|
|
0.4 |
|
|
|
0.5 |
|
|
|
1.1 |
|
|
|
1.3 |
|
Provision for doubtful accounts |
|
|
4.3 |
|
|
|
1.4 |
|
|
|
13.0 |
|
|
|
6.8 |
|
Gain on sale of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19.4 |
) |
Stock-based compensation expense |
|
|
11.2 |
|
|
|
10.0 |
|
|
|
47.4 |
|
|
|
39.1 |
|
Deferred income taxes |
|
|
1.3 |
|
|
|
12.4 |
|
|
|
33.9 |
|
|
|
10.9 |
|
Loss on disposal of fixed assets, net |
|
|
0.1 |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
0.5 |
|
Changes in assets and liabilities, net of effects from
acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(7.9 |
) |
|
|
26.8 |
|
|
|
(48.9 |
) |
|
|
(3.6 |
) |
Prepaid expenses and other assets |
|
|
(4.4 |
) |
|
|
(8.3 |
) |
|
|
(27.5 |
) |
|
|
(62.1 |
) |
Operating lease right-of-use assets, net |
|
|
9.9 |
|
|
|
9.3 |
|
|
|
30.9 |
|
|
|
28.6 |
|
Income taxes |
|
|
10.9 |
|
|
|
(63.3 |
) |
|
|
11.5 |
|
|
|
3.3 |
|
Accounts payable and accrued liabilities |
|
|
49.2 |
|
|
|
39.2 |
|
|
|
29.2 |
|
|
|
(75.5 |
) |
Deferred revenues |
|
|
(71.2 |
) |
|
|
(90.5 |
) |
|
|
116.5 |
|
|
|
94.3 |
|
Operating lease liabilities |
|
|
(10.5 |
) |
|
|
(8.7 |
) |
|
|
(31.0 |
) |
|
|
(16.6 |
) |
Other liabilities |
|
|
(2.7 |
) |
|
|
1.5 |
|
|
|
(20.6 |
) |
|
|
10.2 |
|
Net cash provided by operating activities |
|
|
285.2 |
|
|
|
207.1 |
|
|
|
967.1 |
|
|
|
819.2 |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions and purchase of controlling interest, net of cash
acquired of $0.0 and $5.2; and $5.7 and $5.2, respectively |
|
|
(17.9 |
) |
|
|
(151.9 |
) |
|
|
(49.4 |
) |
|
|
(151.9 |
) |
Proceeds from sale of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
23.1 |
|
Investments in nonpublic companies |
|
|
(6.0 |
) |
|
|
— |
|
|
|
(21.1 |
) |
|
|
(63.8 |
) |
Escrow funding associated with acquisitions |
|
|
(2.4 |
) |
|
|
(8.0 |
) |
|
|
(7.2 |
) |
|
|
(8.0 |
) |
Capital expenditures |
|
|
(61.4 |
) |
|
|
(64.8 |
) |
|
|
(183.1 |
) |
|
|
(174.4 |
) |
Payment of contingent liability related to acquisitions |
|
|
— |
|
|
|
— |
|
|
|
(1.2 |
) |
|
|
— |
|
Other investing activities, net |
|
|
— |
|
|
|
5.7 |
|
|
|
0.8 |
|
|
|
10.3 |
|
Net cash used in investing activities |
|
|
(87.7 |
) |
|
|
(219.0 |
) |
|
|
(261.2 |
) |
|
|
(364.7 |
) |
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(in millions) |
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds (repayments) from short-term debt, net |
|
|
15.0 |
|
|
|
— |
|
|
|
355.0 |
|
|
|
(495.0 |
) |
Repayment of current portion of long-term debt |
|
|
— |
|
|
|
— |
|
|
|
(450.0 |
) |
|
|
— |
|
Proceeds from issuance of short-term debt with original maturities
greater than three months |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20.0 |
|
Repayment of short-term debt with original maturities greater than
three months |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(20.0 |
) |
Proceeds from issuance of long-term debt, inclusive of original
issue premium and net of original issue discount |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
494.8 |
|
Payment of debt issuance costs |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(5.7 |
) |
Repurchases of common stock |
|
|
(150.0 |
) |
|
|
(50.0 |
) |
|
|
(400.0 |
) |
|
|
(298.8 |
) |
Proceeds from stock options exercised |
|
|
23.9 |
|
|
|
26.0 |
|
|
|
44.9 |
|
|
|
68.3 |
|
Net share settlement of taxes from restricted stock and performance
share awards |
|
|
(0.2 |
) |
|
|
— |
|
|
|
(11.2 |
) |
|
|
(3.5 |
) |
Dividends paid |
|
|
(46.8 |
) |
|
|
(43.9 |
) |
|
|
(141.0 |
) |
|
|
(131.8 |
) |
Payment of contingent liability related to acquisitions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(34.2 |
) |
Other financing activities, net |
|
|
(11.1 |
) |
|
|
(8.5 |
) |
|
|
(14.8 |
) |
|
|
(13.0 |
) |
Net cash used in financing activities |
|
|
(169.2 |
) |
|
|
(76.5 |
) |
|
|
(617.1 |
) |
|
|
(418.9 |
) |
Effect of exchange rate changes |
|
|
(2.5 |
) |
|
|
0.8 |
|
|
|
(5.5 |
) |
|
|
1.3 |
|
Net increase (decrease) in cash and cash equivalents |
|
|
25.8 |
|
|
|
(87.6 |
) |
|
|
83.3 |
|
|
|
36.9 |
|
Cash and cash equivalents classified within current assets held for
sale, beginning of period |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
Cash and cash equivalents, beginning of period |
|
|
276.3 |
|
|
|
309.4 |
|
|
|
218.8 |
|
|
|
184.6 |
|
Cash and cash equivalents, end of period |
|
$ |
302.1 |
|
|
$ |
221.8 |
|
|
$ |
302.1 |
|
|
$ |
221.8 |
|
Supplemental disclosures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes paid |
|
$ |
45.8 |
|
|
$ |
107.1 |
|
|
$ |
144.7 |
|
|
$ |
132.8 |
|
Interest paid |
|
$ |
21.2 |
|
|
$ |
19.2 |
|
|
$ |
90.9 |
|
|
$ |
82.9 |
|
Noncash investing and
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liability established on date of acquisition |
|
$ |
1.1 |
|
|
$ |
1.8 |
|
|
$ |
5.5 |
|
|
$ |
1.8 |
|
Finance lease additions |
|
$ |
1.9 |
|
|
$ |
23.8 |
|
|
$ |
4.5 |
|
|
$ |
25.4 |
|
Operating lease additions, net of terminations |
|
$ |
11.6 |
|
|
$ |
2.3 |
|
|
$ |
21.0 |
|
|
$ |
47.5 |
|
Fixed assets included in accounts payable and accrued
liabilities |
|
$ |
10.5 |
|
|
$ |
1.1 |
|
|
$ |
10.5 |
|
|
$ |
1.1 |
|
Gain on sale of assets included in other current and long-term
assets |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3.5 |
|
Held for sale assets contributed to a nonpublic company |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
65.9 |
|
Non-GAAP Reconciliations
Consolidated Adjusted EBITDA Reconciliation(in
millions)Note: EBITDA, adjusted EBITDA, and organic adjusted EBITDA
are non-GAAP measures. Margin is calculated as a percentage of
consolidated revenues.
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
Total |
|
|
Margin |
|
|
Total |
|
|
Margin |
|
|
Total |
|
|
Margin |
|
|
Total |
|
|
Margin |
|
Net income |
|
$ |
204.9 |
|
|
|
27.0 |
% |
|
$ |
185.8 |
|
|
|
26.4 |
% |
|
$ |
524.5 |
|
|
|
23.5 |
% |
|
$ |
536.5 |
|
|
|
25.9 |
% |
Depreciation and amortization
of fixed assets |
|
|
52.1 |
|
|
|
6.9 |
|
|
|
49.4 |
|
|
|
7.0 |
|
|
|
153.9 |
|
|
|
6.9 |
|
|
|
141.3 |
|
|
|
6.8 |
|
Amortization of intangible
assets |
|
|
37.6 |
|
|
|
5.0 |
|
|
|
41.5 |
|
|
|
5.9 |
|
|
|
133.1 |
|
|
|
6.0 |
|
|
|
123.6 |
|
|
|
6.0 |
|
Interest expense |
|
|
29.9 |
|
|
|
3.9 |
|
|
|
35.3 |
|
|
|
5.0 |
|
|
|
96.8 |
|
|
|
4.3 |
|
|
|
102.9 |
|
|
|
5.0 |
|
Provision for income
taxes |
|
|
54.2 |
|
|
|
7.1 |
|
|
|
54.2 |
|
|
|
7.8 |
|
|
|
186.7 |
|
|
|
8.3 |
|
|
|
145.0 |
|
|
|
7.0 |
|
EBITDA |
|
|
378.7 |
|
|
|
49.9 |
|
|
|
366.2 |
|
|
|
52.1 |
|
|
|
1,095.0 |
|
|
|
49.0 |
|
|
|
1,049.3 |
|
|
|
50.7 |
|
Acquisition-related costs
(earn-outs) |
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
2.6 |
|
|
|
0.1 |
|
Gain from dispositions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19.4 |
) |
|
|
(1.0 |
) |
Adjusted EBITDA |
|
|
378.8 |
|
|
|
49.9 |
|
|
|
366.2 |
|
|
|
52.1 |
|
|
|
1,095.1 |
|
|
|
49.1 |
|
|
|
1,032.5 |
|
|
|
49.8 |
|
Adjusted EBITDA from
acquisitions and dispositions |
|
|
(4.2 |
) |
|
|
(0.5 |
) |
|
|
(0.2 |
) |
|
|
— |
|
|
|
(13.1 |
) |
|
|
(0.6 |
) |
|
|
3.0 |
|
|
|
0.2 |
|
Organic adjusted EBITDA |
|
$ |
374.6 |
|
|
|
49.4 |
|
|
$ |
366.0 |
|
|
|
52.1 |
|
|
$ |
1,082.0 |
|
|
|
48.5 |
|
|
$ |
1,035.5 |
|
|
|
50.0 |
|
Segment Results Summary and Adjusted EBITDA
Reconciliation(in millions)Note: Organic revenues, EBITDA,
adjusted EBITDA, and organic adjusted EBITDA are non-GAAP
measures.
|
|
Three Months Ended September 30, 2021 |
|
|
Three Months Ended September 30, 2020 |
|
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
Revenues |
|
$ |
557.9 |
|
|
$ |
165.9 |
|
|
$ |
35.2 |
|
|
$ |
504.3 |
|
|
$ |
158.1 |
|
|
$ |
40.3 |
|
Revenues from acquisitions and
dispositions |
|
|
(16.2 |
) |
|
|
(1.1 |
) |
|
|
— |
|
|
|
(1.5 |
) |
|
|
— |
|
|
|
— |
|
Organic revenues |
|
$ |
541.7 |
|
|
$ |
164.8 |
|
|
$ |
35.2 |
|
|
$ |
502.8 |
|
|
$ |
158.1 |
|
|
$ |
40.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
311.5 |
|
|
$ |
60.5 |
|
|
$ |
6.7 |
|
|
$ |
292.1 |
|
|
$ |
62.4 |
|
|
$ |
11.7 |
|
Acquisition-related costs
(earn-outs) |
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
|
|
311.6 |
|
|
|
60.5 |
|
|
|
6.7 |
|
|
|
292.1 |
|
|
|
62.4 |
|
|
|
11.7 |
|
Adjusted EBITDA from
acquisitions and dispositions |
|
|
(5.7 |
) |
|
|
1.5 |
|
|
|
— |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
— |
|
Organic adjusted EBITDA |
|
$ |
305.9 |
|
|
$ |
62.0 |
|
|
$ |
6.7 |
|
|
$ |
291.9 |
|
|
$ |
62.4 |
|
|
$ |
11.7 |
|
|
|
Nine Months Ended September 30, 2021 |
|
|
Nine Months Ended September 30, 2020 |
|
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
Revenues |
|
$ |
1,643.5 |
|
|
$ |
484.4 |
|
|
$ |
104.7 |
|
|
$ |
1,491.8 |
|
|
$ |
460.8 |
|
|
$ |
118.6 |
|
Revenues from acquisitions and
dispositions |
|
|
(44.7 |
) |
|
|
(1.5 |
) |
|
|
— |
|
|
|
(5.5 |
) |
|
|
— |
|
|
|
(1.3 |
) |
Organic revenues |
|
$ |
1,598.8 |
|
|
$ |
482.9 |
|
|
$ |
104.7 |
|
|
$ |
1,486.3 |
|
|
$ |
460.8 |
|
|
$ |
117.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
911.2 |
|
|
$ |
171.8 |
|
|
$ |
12.0 |
|
|
$ |
848.3 |
|
|
$ |
163.4 |
|
|
$ |
37.6 |
|
Acquisition-related costs
(earn-outs) |
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
2.6 |
|
|
|
— |
|
|
|
— |
|
Gain from dispositions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(15.9 |
) |
|
|
— |
|
|
|
(3.5 |
) |
Adjusted EBITDA |
|
|
911.3 |
|
|
|
171.8 |
|
|
|
12.0 |
|
|
|
835.0 |
|
|
|
163.4 |
|
|
|
34.1 |
|
Adjusted EBITDA from
acquisitions and dispositions |
|
|
(14.7 |
) |
|
|
1.6 |
|
|
|
— |
|
|
|
3.7 |
|
|
|
— |
|
|
|
(0.7 |
) |
Organic adjusted EBITDA |
|
$ |
896.6 |
|
|
$ |
173.4 |
|
|
$ |
12.0 |
|
|
$ |
838.7 |
|
|
$ |
163.4 |
|
|
$ |
33.4 |
|
Segment Adjusted EBITDA Margin
ReconciliationNote: Segment adjusted EBITDA margin is
calculated as a percentage of respective segment revenues.
|
|
Three Months Ended September 30, 2021 |
|
|
Three Months Ended September 30, 2020 |
|
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
EBITDA margin |
|
|
55.8 |
% |
|
|
36.5 |
% |
|
|
19.0 |
% |
|
|
57.9 |
% |
|
|
39.5 |
% |
|
|
28.9 |
% |
Acquisition-related costs
(earn-outs) |
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA margin |
|
|
55.9 |
|
|
|
36.5 |
|
|
|
19.0 |
|
|
|
57.9 |
|
|
|
39.5 |
|
|
|
28.9 |
|
|
|
Nine Months Ended September 30, 2021 |
|
|
Nine Months Ended September 30, 2020 |
|
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
EBITDA margin |
|
|
55.4 |
% |
|
|
35.5 |
% |
|
|
11.4 |
% |
|
|
56.9 |
% |
|
|
35.5 |
% |
|
|
31.7 |
% |
Acquisition-related costs
(earn-outs) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
Gain from dispositions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.1 |
) |
|
|
— |
|
|
|
(3.0 |
) |
Adjusted EBITDA margin |
|
|
55.4 |
|
|
|
35.5 |
|
|
|
11.4 |
|
|
|
56.0 |
|
|
|
35.5 |
|
|
|
28.7 |
|
Consolidated Adjusted EBITDA Expense
Reconciliation(in millions)Note: Adjusted EBITDA expenses
are a non-GAAP measure.
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Operating
expenses |
|
$ |
470.1 |
|
|
$ |
427.3 |
|
|
$ |
1,425.9 |
|
|
$ |
1,283.7 |
|
Depreciation and amortization
of fixed assets |
|
|
(52.1 |
) |
|
|
(49.4 |
) |
|
|
(153.9 |
) |
|
|
(141.3 |
) |
Amortization of intangible
assets |
|
|
(37.6 |
) |
|
|
(41.5 |
) |
|
|
(133.1 |
) |
|
|
(123.6 |
) |
Investment (income) loss and
others, net |
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
(1.3 |
) |
|
|
3.1 |
|
Acquisition-related costs
(earn-outs) |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
|
|
(2.6 |
) |
Gain from dispositions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19.4 |
|
Adjusted EBITDA expenses |
|
$ |
380.2 |
|
|
$ |
336.5 |
|
|
$ |
1,137.5 |
|
|
$ |
1,038.7 |
|
Diluted Adjusted EPS Reconciliation(in
millions, except per share amounts)Note: Diluted adjusted EPS is a
non-GAAP measure.
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income |
|
$ |
204.9 |
|
|
$ |
185.8 |
|
|
$ |
524.5 |
|
|
$ |
536.5 |
|
plus: Amortization of
intangibles |
|
|
37.6 |
|
|
|
41.5 |
|
|
|
133.1 |
|
|
|
123.6 |
|
less: Income tax effect on
amortization of intangibles |
|
|
(8.2 |
) |
|
|
(9.1 |
) |
|
|
(29.2 |
) |
|
|
(27.1 |
) |
plus: Acquisition-related
costs and interest expense (earn-outs) |
|
|
0.1 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
2.6 |
|
less: Income tax effect on
acquisition-related costs and interest expense (earn-outs) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.6 |
) |
less: Gain from
dispositions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19.4 |
) |
plus: Income tax effect on
gain from dispositions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9.6 |
|
Adjusted net income |
|
$ |
234.4 |
|
|
$ |
218.2 |
|
|
$ |
628.5 |
|
|
$ |
625.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS attributable to
Verisk |
|
$ |
1.24 |
|
|
$ |
1.12 |
|
|
$ |
3.21 |
|
|
$ |
3.24 |
|
Diluted adjusted EPS |
|
$ |
1.44 |
|
|
$ |
1.32 |
|
|
$ |
3.85 |
|
|
$ |
3.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average diluted
shares outstanding |
|
|
162.8 |
|
|
|
165.7 |
|
|
|
163.4 |
|
|
|
165.5 |
|
Free Cash Flow Reconciliation(in millions)Note:
Free cash flow is a non-GAAP measure.
|
|
Three Months Ended |
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
|
September 30, |
|
|
|
|
|
|
September 30, |
|
|
|
|
|
|
|
2021 |
|
|
2020 |
|
|
Change |
|
|
2021 |
|
|
2020 |
|
|
Change |
|
Net cash provided
by operating activities |
|
$ |
285.2 |
|
|
$ |
207.1 |
|
|
|
37.7 |
% |
|
$ |
967.1 |
|
|
$ |
819.2 |
|
|
|
18.1 |
% |
Capital
expenditures |
|
|
(61.4 |
) |
|
|
(64.8 |
) |
|
|
(5.2 |
) |
|
|
(183.1 |
) |
|
|
(174.4 |
) |
|
|
5.0 |
|
Free cash flow |
|
$ |
223.8 |
|
|
$ |
142.3 |
|
|
|
57.3 |
|
|
$ |
784.0 |
|
|
$ |
644.8 |
|
|
|
21.6 |
|
Contact:
Investor Relations
Stacey Brodbar
Head of Investor Relations
Verisk
201-469-4327
IR@verisk.com
Media
Alberto Canal
Verisk Public Relations
201-469-2618
Alberto.Canal@verisk.com
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