Verisk (Nasdaq: VRSK), a leading global data analytics provider,
today announced results for the first quarter ended March 31, 2022.
Scott Stephenson, chairman, president, and CEO, said, "It has
been an honor to lead this company. The Verisk I joined 21 years
ago was a smaller, private company, entirely focused in the United
States, and today we help customers around the globe drive positive
and profitable outcomes through a combination of unique data
insights, software, technology and talent. I have the utmost
confidence that I leave Verisk in extremely capable hands of
leaders who will continue to drive growth and long-term
shareholder value."
Lee Shavel, CFO and group president, said, "As I step into
the role of CEO, I am focused near-term on business portfolio and
EBITDA margin objectives and longer-term on driving the growth and
returns that create long-term shareholder value. Verisk, at its
best, creates value for our clients as a trusted technology
partner, investing at industry scale to deliver improved
decision-making and operational efficiencies."
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 |
|
|
|
|
|
|
|
March 31, |
|
|
|
|
|
|
|
2022 |
|
|
2021 |
|
|
Change |
|
Revenues |
|
$ |
775.5 |
|
|
$ |
726.1 |
|
|
|
6.8 |
% |
Net income attributable to
Verisk |
|
|
505.7 |
|
|
|
168.6 |
|
|
|
199.9 |
|
Adjusted EBITDA |
|
|
359.3 |
|
|
|
345.5 |
|
|
|
4.0 |
|
Diluted EPS attributable to
Verisk |
|
|
3.13 |
|
|
|
1.03 |
|
|
|
203.9 |
|
Diluted adjusted EPS |
|
|
1.34 |
|
|
|
1.23 |
|
|
|
8.9 |
|
Net cash provided by operating
activities |
|
|
399.6 |
|
|
|
448.7 |
|
|
|
(10.9 |
) |
Free cash flow |
|
|
339.6 |
|
|
|
389.5 |
|
|
|
(12.8 |
) |
Revenues
Consolidated revenues increased 6.8% and 5.3% on an
OCC basis for the first quarter of 2022. During
the first quarter, Verisk suspended all commercial operations in
Russia which negatively impacted revenue by $2.9 million in
the period. Normalizing for this, OCC revenue would have grown 5.7%
in the first quarter of 2022.
Revenues and Revenue Growth by Segment(in
millions)Note: All OCC figures exclude results from recently
announced dispositions namely, 3E and Verisk Financial
Services.
|
|
|
|
|
|
|
|
|
|
Revenue Growth |
|
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
March 31, 2022 |
|
|
|
2022 |
|
|
2021 |
|
|
Reported |
|
|
OCC |
|
Underwriting & rating |
|
$ |
416.0 |
|
|
$ |
377.1 |
|
|
|
10.3 |
% |
|
|
6.4 |
% |
Claims |
|
|
170.4 |
|
|
|
158.5 |
|
|
|
7.5 |
|
|
|
5.3 |
|
Insurance |
|
|
586.4 |
|
|
|
535.6 |
|
|
|
9.5 |
|
|
|
6.1 |
|
Energy and Specialized Markets |
|
|
154.3 |
|
|
|
156.2 |
|
|
|
(1.2 |
) |
|
|
1.9 |
|
Financial Services |
|
|
34.8 |
|
|
|
34.3 |
|
|
|
1.6 |
|
|
|
- |
|
Revenues |
|
$ |
775.5 |
|
|
$ |
726.1 |
|
|
|
6.8 |
|
|
|
5.3 |
|
Insurance segment revenues grew 9.5% in the first quarter
and 6.1% on an OCC basis.
- Underwriting and rating revenues increased 10.3% in
the quarter and 6.4% 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,
extreme event solutions and life solutions contributed to the
growth.
- Claims revenues grew 7.5% in the quarter and 5.3% on
an OCC basis. Growth was primarily driven by our claims analytics
revenue and property estimating solutions.
Energy and Specialized Markets segment revenue
decreased 1.2% in the quarter and increased 1.9% on an
OCC basis. OCC growth was primarily driven by subscription and
consulting revenues. Normalizing for the impact of
suspended operations in Russia, Energy revenue would have grown
4.3% on an OCC basis.
Financial Services segment revenue increased 1.6% in the
quarter, primarily due to portfolio management and spend
informed analytics, offset by lower bankruptcy volumes.
Net Income Attributable to Verisk and Adjusted
EBITDA
During first-quarter 2022, net income attributable to
Verisk increased 199.9%. The increase was primarily
related to the gain from the sale of our environmental health and
safety business (3E). Adjusted EBITDA increased 4.0%, and
4.1% on an OCC basis. During the quarter, we
incurred incremental expense of $1.4 million related to
the suspension of commercial operations in Russia and $4.5 million
in discrete professional fees. Adjusted for this impact, OCC
adjusted EBITDA growth was 6.9%, reflecting core operating leverage
on solid revenue growth and a beneficial timing difference related
to executive compensation which will reverse over the remainder of
2022.
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. All OCC figures exclude results from recently
announced dispositions namely, 3E and Verisk Financial
Services.
|
|
Three Months Ended March 31, |
|
|
|
EBITDA |
|
|
EBITDA Margin |
|
|
Adjusted EBITDA |
|
|
Adjusted EBITDA Growth |
|
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Reported |
|
|
OCC |
|
|
2022 |
|
|
2021 |
|
Insurance |
|
$ |
302.3 |
|
|
$ |
289.0 |
|
|
|
51.5 |
% |
|
|
54.0 |
% |
|
$ |
302.3 |
|
|
$ |
288.9 |
|
|
|
4.6 |
% |
|
|
5.5 |
% |
|
|
51.5 |
% |
|
|
53.9 |
% |
Energy and Specialized
Markets |
|
|
501.9 |
|
|
|
53.7 |
|
|
|
325.3 |
|
|
|
34.4 |
|
|
|
51.1 |
|
|
|
53.7 |
|
|
|
(4.8 |
) |
|
|
(4.9 |
) |
|
|
33.1 |
|
|
|
34.4 |
|
Financial Services |
|
|
(67.8 |
) |
|
|
2.9 |
|
|
|
(194.9 |
) |
|
|
8.3 |
|
|
|
5.9 |
|
|
|
2.9 |
|
|
|
106.0 |
|
|
|
- |
|
|
|
16.9 |
|
|
|
8.3 |
|
Consolidated |
|
$ |
736.4 |
|
|
$ |
345.6 |
|
|
|
95.0 |
|
|
|
47.6 |
|
|
$ |
359.3 |
|
|
$ |
345.5 |
|
|
|
4.0 |
|
|
|
4.1 |
|
|
|
46.3 |
|
|
|
47.6 |
|
Earnings Per Share and Diluted Adjusted Earnings Per
Share
Diluted EPS attributable to Verisk increased 203.9% to
$3.13 for the first quarter of 2022 primarily due to the gain
from the sale of our environmental health and safety business,
lower interest expense, and a lower average share count,
partially offset by the long-lived asset impairment associated with
our Financial Services segment.
Diluted adjusted EPS increased 8.9% to $1.34 for
the first quarter of 2022 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
$399.6 million for the first quarter of 2022,
down 10.9%. Capital expenditures were $60.0 million
for the first quarter, up 1.4%. Free cash flow was $339.6
million, down 12.8%, primarily due to a decrease in cash
collections as a result of the sale of our environmental health and
safety business on March 11, 2022, delayed collections from certain
customers from the first quarter of 2022 to the second quarter of
2022 and one-time employee related payments. Free cash flow is a
non-GAAP measure. See "Non-GAAP reconciliations" below for a
reconciliation to the nearest GAAP measure.
Dividend
On March 31, 2022, we paid a cash dividend of 31 cents per
share of common stock issued and outstanding to the holders of
record as of March 15, 2022.
On April 27, 2022, our Board of Directors approved a cash
dividend of 31 cents per share of common stock issued and
outstanding, payable on June 30, 2022, to holders of record as of
June 15, 2022.
Share Repurchases
Including the accelerated share repurchase (ASR) settled in the
first quarter of 2022, we repurchased approximately
3,053 thousand shares at an average price of $187.17, for a
total cost of $571.3 million for the first quarter of
2022. As of March 31, 2022, we had $1,032.5 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, May 4,
2022, at 8:30 a.m. EST (5:30 a.m. PT, 1:30 p.m. GMT). 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 #6145897.
About Verisk
Verisk provides data-driven analytic insights and solutions for
the insurance and energy industries. Through advanced data
analytics, software, scientific research, and deep industry
knowledge, Verisk empowers customers to strengthen operating
efficiency, improve underwriting and claims outcomes, combat fraud,
and make informed decisions about global issues, including climate
change and extreme events as well as political and ESG topics. With
offices in more than 30 countries, Verisk consistently earns
certification by Great Place to Work® and fosters an inclusive
culture where all team members feel they belong.
Verisk is traded on the Nasdaq exchange and is a part of the
S&P 500 Index and the Nasdaq-100 Index.
For more information, please visit www.verisk.com.
Contact:
Investor Relations Stacey
BrodbarHead of Investor
RelationsVerisk 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.
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 March 31,
2022 and December 31,
2021
|
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|
|
(in millions, except for
share and per share data) |
|
ASSETS: |
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
397.9 |
|
|
$ |
280.3 |
|
Accounts receivable, net of allowance for doubtful accounts of
$19.2 and $21.3, respectively |
|
|
528.3 |
|
|
|
446.3 |
|
Prepaid expenses |
|
|
105.5 |
|
|
|
102.6 |
|
Income taxes receivable |
|
|
— |
|
|
|
36.7 |
|
Other current assets |
|
|
36.0 |
|
|
|
36.7 |
|
Current assets held for sale |
|
|
51.7 |
|
|
|
— |
|
Total current assets |
|
|
1,119.4 |
|
|
|
902.6 |
|
Noncurrent assets: |
|
|
|
|
|
|
|
|
Fixed assets, net |
|
|
635.9 |
|
|
|
658.2 |
|
Operating lease right-of-use assets, net |
|
|
231.9 |
|
|
|
253.1 |
|
Intangible assets, net |
|
|
1,280.1 |
|
|
|
1,225.9 |
|
Goodwill |
|
|
3,957.6 |
|
|
|
4,331.2 |
|
Deferred income tax assets |
|
|
5.0 |
|
|
|
6.6 |
|
Other noncurrent assets |
|
|
438.6 |
|
|
|
430.5 |
|
Noncurrent assets held for sale |
|
|
490.5 |
|
|
|
— |
|
Total assets |
|
$ |
8,159.0 |
|
|
$ |
7,808.1 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY: |
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
|
251.2 |
|
|
|
320.7 |
|
Short-term debt and current portion of long-term debt |
|
|
1,296.3 |
|
|
|
971.3 |
|
Deferred revenues |
|
|
707.0 |
|
|
|
501.0 |
|
Operating lease liabilities |
|
|
35.9 |
|
|
|
41.2 |
|
Income taxes payable |
|
|
93.9 |
|
|
|
9.0 |
|
Current liabilities held for sale |
|
|
20.3 |
|
|
|
— |
|
Total current liabilities |
|
|
2,404.6 |
|
|
|
1,843.2 |
|
Noncurrent liabilities: |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
2,342.8 |
|
|
|
2,342.8 |
|
Deferred income tax liabilities |
|
|
435.0 |
|
|
|
470.5 |
|
Operating lease liabilities |
|
|
238.6 |
|
|
|
254.7 |
|
Other noncurrent liabilities |
|
|
47.5 |
|
|
|
54.4 |
|
Noncurrent liabilities held for sale |
|
|
14.6 |
|
|
|
— |
|
Total liabilities |
|
|
5,483.1 |
|
|
|
4,965.6 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock, $.001 par value; 2,000,000,000 shares authorized;
544,003,038 shares issued; 158,869,156 and 161,651,639 shares
outstanding, respectively |
|
|
0.1 |
|
|
|
0.1 |
|
Additional paid-in capital |
|
|
2,632.5 |
|
|
|
2,608.7 |
|
Treasury stock, at cost, 385,133,882 and 382,351,399 shares,
respectively |
|
|
(5,205.9 |
) |
|
|
(4,638.1 |
) |
Retained earnings |
|
|
5,696.9 |
|
|
|
5,240.4 |
|
Accumulated other comprehensive losses |
|
|
(465.0 |
) |
|
|
(394.6 |
) |
Total Verisk stockholders' equity |
|
|
2,658.6 |
|
|
|
2,816.5 |
|
Noncontrolling interests |
|
|
17.3 |
|
|
|
26.0 |
|
Total stockholders’ equity |
|
|
2,675.9 |
|
|
|
2,842.5 |
|
Total liabilities and stockholders’ equity |
|
$ |
8,159.0 |
|
|
$ |
7,808.1 |
|
VERISK ANALYTICS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)For
the Three Months Ended March
31, 2022 and 2021
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(in millions, except for
share and per share data) |
|
Revenues |
|
$ |
775.5 |
|
|
$ |
726.1 |
|
Operating expenses
(income): |
|
|
|
|
|
|
|
|
Cost of revenues (exclusive of items shown separately below) |
|
|
280.5 |
|
|
|
262.4 |
|
Selling, general and administrative |
|
|
135.3 |
|
|
|
119.8 |
|
Depreciation and amortization of fixed assets |
|
|
49.6 |
|
|
|
48.5 |
|
Amortization of intangible assets |
|
|
44.6 |
|
|
|
45.0 |
|
Other operating income, net |
|
|
(377.1 |
) |
|
|
— |
|
Total operating expenses, net |
|
|
132.9 |
|
|
|
475.7 |
|
Operating income |
|
|
642.6 |
|
|
|
250.4 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
Investment (loss) income |
|
|
(0.4 |
) |
|
|
1.7 |
|
Interest expense |
|
|
(31.3 |
) |
|
|
(35.4 |
) |
Total other expense, net |
|
|
(31.7 |
) |
|
|
(33.7 |
) |
Income before income
taxes |
|
|
610.9 |
|
|
|
216.7 |
|
Provision for income
taxes |
|
|
(105.1 |
) |
|
|
(48.7 |
) |
Net income |
|
|
505.8 |
|
|
|
168.0 |
|
Less: Net (income) loss attributable to noncontrolling
interests |
|
|
(0.1 |
) |
|
|
0.6 |
|
Net income attributable to Verisk |
|
$ |
505.7 |
|
|
$ |
168.6 |
|
Basic net income per share
attributable to Verisk |
|
$ |
3.15 |
|
|
$ |
1.04 |
|
Diluted net income per share
attributable to Verisk |
|
$ |
3.13 |
|
|
$ |
1.03 |
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
160,680,955 |
|
|
|
162,641,819 |
|
Diluted |
|
|
161,638,617 |
|
|
|
164,436,717 |
|
VERISK ANALYTICS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (UNAUDITED)For the Three Months
Ended March 31, 2022 and
2021
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(in
millions) |
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
505.8 |
|
|
$ |
168.0 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization of fixed assets |
|
|
49.6 |
|
|
|
48.5 |
|
Amortization of intangible assets |
|
|
44.6 |
|
|
|
45.0 |
|
Amortization of debt issuance costs and original issue discount,
net of original issue premium |
|
|
0.3 |
|
|
|
0.4 |
|
Provision for doubtful accounts |
|
|
1.7 |
|
|
|
3.2 |
|
Gain on sale of assets |
|
|
(450.8 |
) |
|
|
— |
|
Stock-based compensation expense |
|
|
20.5 |
|
|
|
25.4 |
|
Impairment of long-lived assets |
|
|
73.7 |
|
|
|
— |
|
Deferred income taxes |
|
|
(37.1 |
) |
|
|
(0.7 |
) |
Changes in assets and liabilities, net of effects from
acquisitions: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(133.1 |
) |
|
|
(89.5 |
) |
Prepaid expenses and other assets |
|
|
1.4 |
|
|
|
(4.2 |
) |
Operating lease right-of-use assets, net |
|
|
10.4 |
|
|
|
10.4 |
|
Income taxes |
|
|
131.0 |
|
|
|
38.4 |
|
Accounts payable and accrued liabilities |
|
|
(70.0 |
) |
|
|
(25.9 |
) |
Deferred revenues |
|
|
266.1 |
|
|
|
256.9 |
|
Operating lease liabilities |
|
|
(10.3 |
) |
|
|
(10.1 |
) |
Other liabilities |
|
|
(4.2 |
) |
|
|
(17.1 |
) |
Net cash provided by operating activities |
|
|
399.6 |
|
|
|
448.7 |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Acquisitions and purchase of additional controlling interest, net
of cash acquired of $17.4 and $3.8, respectively |
|
|
(445.4 |
) |
|
|
(13.7 |
) |
Proceeds from sale of assets |
|
|
575.0 |
|
|
|
— |
|
Investments in nonpublic companies |
|
|
(41.0 |
) |
|
|
— |
|
Capital expenditures |
|
|
(60.0 |
) |
|
|
(59.2 |
) |
Escrow funding associated with acquisitions |
|
|
(2.3 |
) |
|
|
— |
|
Payment of contingent liability related to acquisition |
|
|
— |
|
|
|
(1.2 |
) |
Other investing activities, net |
|
|
— |
|
|
|
0.4 |
|
Net cash provided by (used in) investing activities |
|
|
26.3 |
|
|
|
(73.7 |
) |
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(in
millions) |
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Proceeds from short-term debt |
|
|
200.0 |
|
|
|
— |
|
Repayment of current portion of long-term-debt |
|
|
— |
|
|
|
(50.0 |
) |
Proceeds from issuance of short-term debt with original maturities
less than three months |
|
|
125.0 |
|
|
|
— |
|
Repurchases of common stock |
|
|
(571.3 |
) |
|
|
(100.0 |
) |
Proceeds from stock options exercised |
|
|
15.8 |
|
|
|
7.6 |
|
Net share settlement of taxes from restricted stock and performance
share awards |
|
|
(11.3 |
) |
|
|
(7.8 |
) |
Dividends paid |
|
|
(49.4 |
) |
|
|
(47.1 |
) |
Other financing activities, net |
|
|
(2.4 |
) |
|
|
(1.9 |
) |
Net cash used in financing activities |
|
|
(293.6 |
) |
|
|
(199.2 |
) |
Effect of exchange rate changes |
|
|
(6.6 |
) |
|
|
(3.7 |
) |
Net increase in cash and cash equivalents |
|
|
125.7 |
|
|
|
172.1 |
|
Cash and cash equivalents, beginning of period |
|
|
280.3 |
|
|
|
218.8 |
|
Cash and cash equivalents, end of period |
|
$ |
406.0 |
|
|
$ |
390.9 |
|
Supplemental disclosures: |
|
|
|
|
|
|
|
|
Income taxes paid |
|
$ |
11.7 |
|
|
$ |
10.8 |
|
Interest paid |
|
$ |
21.1 |
|
|
$ |
19.5 |
|
Noncash investing and
financing activities: |
|
|
|
|
|
|
|
|
Deferred tax liability established on date of acquisition |
|
$ |
16.1 |
|
|
$ |
2.2 |
|
Net assets sold as part of the disposition |
|
$ |
124.2 |
|
|
$ |
— |
|
Finance lease additions |
|
$ |
2.1 |
|
|
$ |
2.0 |
|
Operating lease additions, net of terminations |
|
$ |
1.7 |
|
|
$ |
6.7 |
|
Fixed assets included in accounts payable and accrued
liabilities |
|
$ |
0.3 |
|
|
$ |
0.9 |
|
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 March 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
Total |
|
|
Margin |
|
|
Total |
|
|
Margin |
|
Net income |
|
$ |
505.8 |
|
|
|
65.2 |
% |
|
$ |
168.0 |
|
|
|
23.1 |
% |
Depreciation and amortization
of fixed assets |
|
|
49.6 |
|
|
|
6.4 |
|
|
|
48.5 |
|
|
|
6.7 |
|
Amortization of intangible
assets |
|
|
44.6 |
|
|
|
5.8 |
|
|
|
45.0 |
|
|
|
6.2 |
|
Interest expense |
|
|
31.3 |
|
|
|
4.0 |
|
|
|
35.4 |
|
|
|
4.9 |
|
Provision for income
taxes |
|
|
105.1 |
|
|
|
13.6 |
|
|
|
48.7 |
|
|
|
6.7 |
|
EBITDA |
|
|
736.4 |
|
|
|
95.0 |
|
|
|
345.6 |
|
|
|
47.6 |
|
Impairment loss |
|
|
73.7 |
|
|
|
9.5 |
|
|
|
— |
|
|
|
— |
|
Acquisition-related costs
(earn-outs) |
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
Gain from disposition |
|
|
(450.8 |
) |
|
|
(58.2 |
) |
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
|
|
359.3 |
|
|
|
46.3 |
|
|
|
345.5 |
|
|
|
47.6 |
|
Adjusted EBITDA from
acquisitions and dispositions |
|
|
(19.2 |
) |
|
|
(2.4 |
) |
|
|
(17.2 |
) |
|
|
(2.4 |
) |
Organic adjusted EBITDA |
|
$ |
340.1 |
|
|
|
43.9 |
|
|
$ |
328.3 |
|
|
|
45.2 |
|
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 March 31, 2022 |
|
|
Three Months Ended March 31, 2021 |
|
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
Revenues |
|
$ |
586.4 |
|
|
$ |
154.3 |
|
|
$ |
34.8 |
|
|
$ |
535.6 |
|
|
$ |
156.2 |
|
|
$ |
34.3 |
|
Revenues from acquisitions and
dispositions |
|
|
(19.8 |
) |
|
|
(24.5 |
) |
|
|
(34.8 |
) |
|
|
(0.6 |
) |
|
|
(27.3 |
) |
|
|
(34.3 |
) |
Organic revenues |
|
$ |
566.6 |
|
|
$ |
129.8 |
|
|
$ |
— |
|
|
$ |
535.0 |
|
|
$ |
128.9 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
302.3 |
|
|
$ |
501.9 |
|
|
$ |
(67.8 |
) |
|
$ |
289.0 |
|
|
$ |
53.7 |
|
|
$ |
2.9 |
|
Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
73.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Acquisition-related costs
(earn-outs) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
— |
|
Gain from disposition |
|
|
— |
|
|
|
(450.8 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
|
|
302.3 |
|
|
|
51.1 |
|
|
|
5.9 |
|
|
|
288.9 |
|
|
|
53.7 |
|
|
|
2.9 |
|
Adjusted EBITDA from
acquisitions and dispositions |
|
|
(3.2 |
) |
|
|
(10.1 |
) |
|
|
(5.9 |
) |
|
|
(4.6 |
) |
|
|
(9.7 |
) |
|
|
(2.9 |
) |
Organic adjusted EBITDA |
|
$ |
299.1 |
|
|
$ |
41.0 |
|
|
$ |
— |
|
|
$ |
284.3 |
|
|
$ |
44.0 |
|
|
$ |
— |
|
Segment Adjusted EBITDA Margin
ReconciliationNote: Segment adjusted EBITDA margin is
calculated as a percentage of respective segment revenues.
|
|
Three Months Ended March 31, 2022 |
|
|
Three Months Ended March 31, 2021 |
|
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
EBITDA margin |
|
|
51.5 |
% |
|
|
325.3 |
% |
|
|
(194.9 |
)% |
|
|
54.0 |
% |
|
|
34.4 |
% |
|
|
8.3 |
% |
Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
211.8 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Acquisition-related costs
(earn-outs) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
— |
|
Gain from disposition |
|
|
— |
|
|
|
(292.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA margin |
|
|
51.5 |
|
|
|
33.1 |
|
|
|
16.9 |
|
|
|
53.9 |
|
|
|
34.4 |
|
|
|
8.3 |
|
Consolidated Adjusted EBITDA Expense
Reconciliation(in millions)Note: Adjusted EBITDA expenses
are a non-GAAP measure.
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2022 |
|
|
2021 |
|
Operating expenses |
|
$ |
132.9 |
|
|
$ |
475.7 |
|
Depreciation and amortization
of fixed assets |
|
|
(49.6 |
) |
|
|
(48.5 |
) |
Amortization of intangible
assets |
|
|
(44.6 |
) |
|
|
(45.0 |
) |
Investment loss (income) |
|
|
0.4 |
|
|
|
(1.7 |
) |
Acquisition-related costs
(earn-outs) |
|
|
— |
|
|
|
0.1 |
|
Impairment loss |
|
|
(73.7 |
) |
|
|
— |
|
Gain from disposition |
|
|
450.8 |
|
|
|
— |
|
Adjusted EBITDA expenses |
|
$ |
416.2 |
|
|
$ |
380.6 |
|
Diluted Adjusted EPS Reconciliation(in
millions, except per share amounts)Note: Diluted adjusted EPS is a
non-GAAP measure.
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2022 |
|
|
2021 |
|
Net income |
|
$ |
505.8 |
|
|
$ |
168.0 |
|
plus: Amortization of
intangibles |
|
|
44.6 |
|
|
|
45.0 |
|
less: Income tax effect on
amortization of intangibles |
|
|
(9.8 |
) |
|
|
(9.9 |
) |
plus: Acquisition-related
costs and interest expense (earn-outs) |
|
|
— |
|
|
|
(0.1 |
) |
plus: Impairment loss |
|
|
73.7 |
|
|
|
— |
|
less: Income tax effect on
impairment loss |
|
|
(16.8 |
) |
|
|
— |
|
less: Gain from
disposition |
|
|
(450.8 |
) |
|
|
— |
|
plus: Income tax effect on
gain from disposition |
|
|
70.4 |
|
|
|
— |
|
Adjusted net income |
|
$ |
217.1 |
|
|
$ |
203.0 |
|
|
|
|
|
|
|
|
|
|
Diluted EPS attributable to
Verisk |
|
$ |
3.13 |
|
|
$ |
1.03 |
|
Diluted adjusted EPS |
|
$ |
1.34 |
|
|
$ |
1.23 |
|
|
|
|
|
|
|
|
|
|
Weighted-average diluted
shares outstanding |
|
|
161.6 |
|
|
|
164.4 |
|
Free Cash Flow Reconciliation(in millions)Note:
Free cash flow is a non-GAAP measure.
|
|
Three Months Ended |
|
|
|
|
|
|
|
March 31, |
|
|
|
|
|
|
|
2022 |
|
|
2021 |
|
|
Change |
|
Net cash provided by operating
activities |
|
$ |
399.6 |
|
|
$ |
448.7 |
|
|
|
(10.9 |
)% |
Capital expenditures |
|
|
(60.0 |
) |
|
|
(59.2 |
) |
|
|
1.4 |
|
Free cash flow |
|
$ |
339.6 |
|
|
$ |
389.5 |
|
|
|
(12.8 |
) |
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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