CHICAGO, Feb. 17, 2011 /PRNewswire/ -- Morningstar, Inc.
(Nasdaq: MORN), a leading provider of independent investment
research, today announced its fourth-quarter and full-year 2010
financial results. The company reported consolidated revenue of
$151.2 million in the fourth quarter
of 2010, a 23.2% increase from $122.6
million in the fourth quarter of 2009. Consolidated
operating income was $32.3 million in
the fourth quarter of 2010, an increase of 32.9% compared with
$24.3 million in the same period a
year ago. Net income was $27.4
million, or 54 cents per
diluted share, compared with $14.8
million, or 29 cents per
diluted share, in the fourth quarter of 2009.
Excluding acquisitions and the impact of foreign currency
translations, revenue increased 12.2%. Fourth-quarter results
included $13.5 million in revenue
from acquisitions. Foreign currency translations had a slightly
favorable effect. Revenue excluding acquisitions and foreign
currency translations (organic revenue) is a non-GAAP measure; the
accompanying financial tables contain a reconciliation to
consolidated revenue.
For the year ended Dec. 31, 2010,
revenue was $555.4 million, an
increase of 15.9% compared with $479.0
million in 2009. Revenue for the year included $47.9 million from acquisitions and $4.4 million from foreign currency translations.
Excluding acquisitions and foreign currency translations, revenue
rose 5.0%. Consolidated operating income declined 2.9% to
$121.1 million in 2010, compared with
$124.7 million in 2009. Net income
was $86.4 million, or $1.70 per diluted share, in 2010, compared with
$82.1 million, or $1.65 per diluted share, in 2009.
The 2009 net income and earnings per share amounts referenced
above have been revised from previously reported amounts. Following
a review of the company’s accounting for deferred income taxes, the
company determined that the cumulative effect of certain
adjustments related to prior periods was material, in aggregate, to
2010 net income. Therefore, under Staff Accounting Bulletin No.
108, Considering the Effects of Prior Year Misstatements when
Quantifying Misstatements in Current Year Financial Statements
(SAB 108), the company has recorded these adjustments in the
appropriate prior-year periods.
As a result, in the fourth quarter of 2010, the company reversed
$3.9 million of income tax expense
from previous years related to Morningstar’s share of earnings from
equity method investments. This expense was previously recorded in
the third quarter of 2010. The effect of this reversal was to
increase net income by 8 cents per
diluted share in the fourth quarter of 2010.
The earnings release includes a revision to previously announced
income tax and net income figures for the fourth quarter and
full-year 2009. Net income for the fourth quarter of 2009, as
restated, was $14.8 million, compared
with $14.4 million as previously
reported. Fourth-quarter 2009 income tax expense, as restated, was
$9.6 million, compared with
$10.0 million as previously reported.
Net income for full-year 2009 was revised to $82.1 million from $82.5
million as previously reported. The company’s 2009 income
tax expense, as restated, was $46.8
million, compared with $47.1
million as previously reported.
The company will include more detail on the restated financial
amounts for previous years and interim periods in its 2010 10-K
filing, but does not consider the adjustments to previously
reported periods to be material.
Joe Mansueto, chairman and chief
executive officer of Morningstar, said, "Our business rebounded
nicely in 2010. Organic revenue growth improved sequentially each
quarter, with positive trends across most of our product lines.
Morningstar.com advertising sales and Morningstar Direct were the
main drivers of organic revenue growth for the year. All in all,
we're pleased with our performance and our prospects as we continue
to execute our key growth strategies."
Mansueto outlined some of the company's key accomplishments and
challenges in 2010:
Accomplishments
- We made solid progress building a base for our credit research
business and now offer credit ratings and reports on more than 720
corporate credit issuers. We acquired Realpoint, a Nationally
Recognized Statistical Rating Organization that specializes in
commercial mortgage-backed securities.
- We expanded our analyst research and investment consulting work
on exchange-traded funds, closed-end funds, alternative
investments, 529 plans, and target-date funds—all areas that have
seen strong investor interest.
- We continued to expand our equity research business, doubling
our client base in just one year.
- We continued building out our global operations, establishing a
presence in Brazil, Chile, Mexico, and Luxembourg. We also expanded our international
investment research and consulting businesses by acquiring Aegis,
Seeds Group, and OBSR.
- Morningstar Direct had a record year, with more than 1,200 new
licenses added globally.
- Both renewal rates for contract-based products and services and
retention rates for subscription products rose substantially
compared with 2009, reflecting improved business conditions and
healthier sales trends across most of our product lines.
- Morningstar's board of directors approved a 5 cent per share initial quarterly dividend and a
$100 million share repurchase
program, allowing us to return a portion of our cash balance to
shareholders.
Challenges
- Operating expense rose faster than revenue in 2010, leading to
a 4.2 percentage point decline in operating margin, in part because
we restored some incentive compensation and benefits after reducing
them in 2009.
- We have more work to do in fully integrating some of our
acquisitions and rebranding many of these businesses under the
Morningstar umbrella.
- While advertising sales on Morningstar.com rebounded strongly,
U.S. Premium Membership subscriptions were 8% lower year over year
as individual investors have been slow to return to the stock
market and remain cautious about discretionary spending.
Key Business Drivers
Morningstar has two operating segments: Investment Information
and Investment Management. The Investment Information segment
includes all of the company's data, software, and research products
and services. These products and services are typically sold
through subscriptions or license agreements. The Investment
Management segment includes all of the company's asset management
operations, which earn more than half of their revenue from
asset-based fees.
Revenue: In the fourth quarter of 2010, revenue in the
Investment Information segment was $120.4
million, an increase of $23.1
million, or 23.8%, including $12.1
million from acquisitions. Revenue in the Investment
Management segment was $30.8 million,
an increase of $5.4 million, or
21.3%, including $1.4 million from
acquisitions.
Revenue from international operations was $44.5 million in the fourth quarter of 2010, an
increase of 24.2% from the same period a year ago. International
revenue included $4.3 million from
acquisitions. Foreign currency translations had a slightly
favorable effect. Excluding acquisitions and foreign currency
translations, international revenue rose 11.9%.
For the full year, international revenue increased $28.0 million, or 21.7%, including $17.0 million from acquisitions and $4.4 million from foreign currency translations.
Excluding acquisitions and foreign currency translations,
international revenue improved 5.2%. International revenue
excluding acquisitions and foreign currency translations is a
non-GAAP measure; the accompanying financial tables contain a
reconciliation to international revenue.
Operating Income: Consolidated operating income was
$32.3 million in the fourth quarter
of 2010, a 32.9% increase from the same period in 2009. Operating
expense rose $20.5 million, or
20.9%.
Incremental operating expense related to businesses acquired in
2010 and 2009 represented approximately half of the change in
operating expense. The company completed seven acquisitions in 2010
and six in 2009. Because of the timing of these acquisitions, the
fourth-quarter and year-to-date results include operating expense
that did not exist in the same periods in 2009.
Approximately 45% of the growth in total operating expense was
due to higher salaries, reflecting additional headcount from
acquisitions and filling open positions, as well as salary
increases made in July 2010 following
generally flat salary levels in 2009.
Incentive compensation and employee benefit costs represented
another 40% of the total change in operating expense. Bonus expense
rose $4.7 million in the fourth
quarter of 2010 compared with the prior-year period. In 2010, the
company partially restored the bonus expense after reducing it in
2009. Acquisitions also contributed to the growth in bonus expense,
but to a lesser extent. Sales commissions were $1.8 million higher, reflecting improved sales
activity and a change in the company's U.S. sales commission
structure earlier in the year. Under its new commission plan, the
company now records the entire expense in the quarter of the sale
versus over the term of the client contract. The company partially
reinstated matching contributions to its 401(k) plan in
the United States, representing
approximately $0.8 million of expense
in the quarter.
Operating expense in the fourth quarter of 2010 also included
approximately $2.0 million related to
a previously announced separation agreement between Morningstar and
the former head of Morningstar Associates.
In the fourth quarter of 2009, Morningstar recorded a
$6.1 million operating expense
related to adjusting the treatment of some stock options that were
originally considered incentive stock options (ISOs) and should
have been considered non-qualified stock options. This expense did
not recur in 2010.
Operating margin was 21.4% in the fourth quarter of 2010, up
from 19.8% in the same period in 2009. The $6.1 million operating expense related to
adjusting the treatment of some stock options reduced the company's
operating margin by 5 percentage points in the fourth quarter of
2009.
In 2010, operating margin was 21.8%, compared with 26.0% in
2009. The margin decline primarily reflects higher compensation,
bonuses, sales commissions, and employee benefits as a percentage
of revenue. Acquisitions accounted for approximately 2 percentage
points of the margin decline for the year. In addition to the
$6.1 million operating expense
discussed above, in 2009 the company also incurred $3.4 million in operating expense for penalties
related to the timing of deposits for taxes withheld on
stock-option exercises. Combined, these two items reduced the
margin by 2 percentage points in 2009.
Morningstar had approximately 3,225 employees worldwide as of
Dec. 31, 2010, compared with 2,605 as
of Dec. 31, 2009. Headcount grew year
over year mainly because of acquisitions and continued hiring in
the company's development centers in China and India.
Effective Tax Rate: Morningstar’s effective tax rate in
the fourth quarter of 2010 was 17.3%, down 21.9 percentage points
compared with 39.2% for the fourth quarter of 2009. The
fourth-quarter 2010 income tax expense benefited from the reversal
of $3.9 million of expense, which
reduced the effective tax rate by approximately 11 percentage
points. The lower tax rate in the fourth quarter of 2010 also
reflects the positive impact of certain income tax benefits,
including the difference between U.S. federal and foreign tax
rates.
In 2010, the company’s effective tax rate was 33.1%, a decrease
of 3.2 percentage points compared with 36.3% for 2009. The lower
tax rate in 2010 reflects the positive impact of certain income tax
benefits, including the difference between U.S. federal and foreign
tax rates, tax credits related to Morningstar's research and
development activities, and the utilization of foreign net
operating losses that had previously been subject to a valuation
allowance. These items favorably impacted the company’s effective
tax rate by approximately 3.7 percentage points in 2010.
Free Cash Flow: Morningstar generated free cash flow of
$36.2 million in the fourth quarter
of 2010, reflecting cash provided by operating activities of
$43.3 million and $7.1 million of capital expenditures. Free cash
flow improved $9.5 million compared
with the fourth quarter of 2009 as cash provided by operating
activities was up $14.5 million and
capital expenditures rose $5.0
million.
In 2010, Morningstar generated free cash flow of $108.8 million, reflecting cash provided by
operating activities of $123.6
million and capital expenditures of $14.8 million. Cash provided by operating
activities in 2010 was up $27.4
million, primarily reflecting a $37.5
million reduction in bonuses paid in the first quarter of
2010.
Free cash flow is a non-GAAP measure; the accompanying financial
tables contain a reconciliation to cash provided by operating
activities. Morningstar defines free cash flow as cash provided by
or used for operating activities less capital expenditures.
As of Dec. 31, 2010, Morningstar
had cash, cash equivalents, and investments of $365.4 million, compared with $342.6 million as of Dec.
31, 2009. The company paid $102.3
million for acquisitions in 2010. Morningstar expects to
make annual bonus payments of approximately $38 million in the first quarter of 2011,
compared with $21 million in the
first quarter of 2010. During 2011, the company anticipates making
capital expenditures of approximately $14
million to $17 million primarily for leasehold improvements
at new and existing office locations, a portion of which represents
payments for the company's new development center in China. In addition, Morningstar expects to pay
$4.2 million to two former executives
as part of previously announced separation agreements. As mentioned
above, Morningstar's board of directors has approved a regular
quarterly dividend and a share repurchase program authorizing the
repurchase of up to $100 million in
shares of Morningstar's outstanding common stock.
Business Segment Performance
Investment Information Segment: The largest products and
services in this segment based on revenue are Morningstar® Licensed
Data; Morningstar® Advisor Workstation(SM); Morningstar.com®,
including Premium Memberships and Internet advertising sales; and
Morningstar Direct(SM).
- Revenue was $120.4 million in the
fourth quarter of 2010, up 23.8% from $97.3
million in the fourth quarter of 2009.
- Acquisitions contributed revenue of $12.1 million in the fourth quarter of 2010.
- Internet advertising sales on Morningstar.com; Morningstar
Direct; Licensed Data; Site Builder and Licensed Tools; and
Morningstar Advisor Workstation (including Morningstar Office) were the major contributors
to organic revenue growth. Morningstar Direct licenses rose 35.4%
to 4,773, partly reflecting client migrations from Institutional
Workstation. Premium Membership subscriptions for Morningstar.com
fell 7.8% to 138,732. Principia subscriptions were down 8.8% to
32,681, and Advisor Workstation licenses rose slightly to
153,170.
- Operating income was $31.6
million in the fourth quarter of 2010, compared with
$31.2 million in the same period in
2009. Operating expense in this segment rose $22.6 million, or 34.2%, with approximately 40%
of the increase from acquisitions. Higher compensation, bonuses,
sales commissions, and employee benefits expense also contributed
to the increase.
- Operating margin was 26.3% in the fourth quarter of 2010 versus
32.0% in the prior-year period. The margin decline reflects higher
compensation, bonus, commission, and benefits expense as a
percentage of revenue. Acquisitions did not significantly impact
this segment's operating margin.
Investment Management Segment: The largest products in
this segment based on revenue are Investment Consulting; Retirement
Advice, including Advice by Ibbotson® and Morningstar® Retirement
Manager(SM); and Morningstar® Managed Portfolios(SM).
- Revenue was $30.8 million in the
fourth quarter of 2010, a 21.3% increase from $25.4 million in the same period in 2009.
- Acquisitions contributed revenue of $1.4
million in the fourth quarter.
- Retirement Advice and Investment Consulting were the primary
growth drivers, followed by Morningstar Managed Portfolios.
- Total assets under advisement for Investment Consulting rose
74.6% to $107.2 billion, from
$61.4 billion as of Dec. 31, 2009. About $39.0
billion of the assets reflects a new fund-of-funds program
that began in May 2010 for an
existing Morningstar Associates client. Excluding assets from the
new fund-of-funds program, assets under advisement for Investment
Consulting increased year over year, mainly reflecting positive
market performance. Assets under management for Retirement Advice
were $19.6 billion as of Dec. 31, 2010, versus $15.7 billion as of Dec.
31, 2009. Assets under management for Morningstar Managed
Portfolios were $2.7 billion as of
Dec. 31, 2010, compared with
$2.1 billion as of Dec. 31, 2009.
- Operating income was $15.7
million in the fourth quarter of 2010, an increase of 15.2%
compared with the fourth quarter of 2009. Operating expense in the
segment was $15.1 million, up
$3.3 million, or 28.3%, primarily
reflecting higher compensation and bonus expense. Operating expense
included $2.0 million related to a
previously announced separation agreement between Morningstar and
the former head of Morningstar Associates.
- Operating margin was 50.9% in the fourth quarter of 2010 versus
53.6% in the prior-year period, as revenue growth lagged the
increase in operating expense.
Intangible Amortization and Corporate Depreciation Expense:
Morningstar does not allocate expense for intangible
amortization or corporate depreciation to its operating segments.
Intangible amortization, which represents the majority of expense
in this category, was $7.3 million in
the fourth quarter of 2010 and $24.9
million for the year, an increase of $2.1 million and $5.9
million, respectively. The change in both periods reflects
additional amortization expense from acquisitions. Corporate
depreciation expense was $1.9 million
in the fourth quarter and $7.3
million for the year.
Corporate Unallocated: This category includes costs
related to corporate functions, including general management,
information technology used to support corporate systems, legal,
finance, human resources, marketing, and corporate communications.
Costs in this category were $5.9
million in the quarter, a decrease of $7.6 million, or 56.5%, because a $6.1 million operating expense related to
adjusting the treatment of some stock options originally considered
incentive stock options did not recur in 2010. In the fourth
quarter of 2010, the company capitalized $0.8 million of operating expense for software
development. These favorable items were partially offset by higher
bonus and other compensation-related expense.
Annual Meeting
Investors are invited to attend Morningstar's annual meeting at
9 a.m. on Tuesday, May 17, 2011, at its corporate
headquarters at 22 W. Washington Street in Chicago. If you are interested in attending,
please send an e-mail to investors@morningstar.com.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent
investment research in North
America, Europe,
Australia, and Asia. The company offers an extensive line of
Internet, software, and print-based products and services for
individuals, financial advisors, and institutions. Morningstar
provides data on approximately 380,000 investment offerings,
including stocks, mutual funds, and similar vehicles, along with
real-time global market data on more than 4 million equities,
indexes, futures, options, commodities, and precious metals, in
addition to foreign exchange and Treasury markets. The company has
operations in 26 countries.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements as that
term is used in the Private Securities Litigation Reform Act of
1995. These statements are based on our current expectations about
future events or future financial performance. Forward-looking
statements by their nature address matters that are, to different
degrees, uncertain, and often contain words such as "may," "could,"
"expect," "intend," "plan," "seek," "anticipate," "believe,"
"estimate," "predict," "potential," or "continue." These statements
involve known and unknown risks and uncertainties that may cause
the events we discussed not to occur or to differ significantly
from what we expected. For us, these risks and uncertainties
include, among others, general industry conditions and competition,
including current global financial uncertainty; the impact of
market volatility on revenue from asset-based fees; damage to our
reputation resulting from claims made about possible conflicts of
interest; liability for any losses that result from an actual or
claimed breach of our fiduciary duties; financial services industry
consolidation; a prolonged outage of our database and network
facilities; challenges faced by our non-U.S. operations; and the
availability of free or low-cost investment information. A more
complete description of these risks and uncertainties can be found
in our filings with the Securities and Exchange Commission,
including our Annual Report on Form 10-K for the year ended
December 31, 2009. If any of these
risks and uncertainties materialize, our actual future results may
vary significantly from what we expected. We do not undertake to
update our forward-looking statements as a result of new
information or future events.
Non-GAAP Financial Measures
To supplement Morningstar's consolidated financial statements
presented in accordance with U.S. Generally Accepted Accounting
Principles (GAAP), Morningstar uses the following measures
considered as non-GAAP by the Securities and Exchange Commission:
free cash flow, consolidated revenue excluding acquisitions
and foreign currency translations (organic revenue), and
international revenue excluding acquisitions and foreign currency
translations. These non-GAAP measures may not be comparable to
similarly titled measures reported by other companies.
Morningstar presents free cash flow solely as supplemental
disclosure to help investors better understand how much cash is
available after Morningstar spends money to operate its business.
Morningstar uses free cash flow to evaluate its business. Free cash
flow should not be considered an alternative to any measure
required to be reported under GAAP (such as cash provided by (used
for) operating, investing, and financing activities). For more
information on free cash flow, please see the reconciliation from
cash provided by operating activities to free cash flow included in
the accompanying financial tables. Morningstar presents
consolidated revenue excluding acquisitions and foreign currency
translations (organic revenue) and international revenue excluding
acquisitions and foreign currency translations because the company
believes these non-GAAP measures help investors better compare
period-to-period results. For more information, please see the
reconciliation provided in the accompanying financial tables.
All dollar and percentage comparisons, which are often
accompanied by words such as "increase," "decrease," "grew,"
"declined, "or "was similar" refer to a comparison with the same
period in the previous year unless otherwise stated.
©2011 Morningstar, Inc. All rights reserved.
MORN-E
Contacts:
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Media: Alexa Auerbach,
312-696-6481 or alexa.auerbach@morningstar.com
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Nadine Youssef, 312-696-6601
or nadine.youssef@morningstar.com
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Investors may submit questions
to investors@morningstar.com
or by fax to
312-696-6009.
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Morningstar, Inc. and
Subsidiaries
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Unaudited Condensed Consolidated
Statements of Income
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|
|
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|
|
|
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|
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|
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Three months ended December
31
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Year ended December
31
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(in thousands, except per share
amounts)
|
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2010
|
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2009
|
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change
|
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2010
|
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2009
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change
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Revenue
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$
151,153
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$
122,643
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23.2%
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$
555,351
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$ 478,996
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15.9%
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Operating expense(1):
|
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|
|
|
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|
|
|
|
|
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|
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Cost of goods sold
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42,301
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35,716
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18.4%
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157,068
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128,616
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22.1%
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Development
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13,753
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10,193
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34.9%
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49,244
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38,378
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28.3%
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Sales and marketing
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25,596
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18,496
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38.4%
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95,473
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71,772
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33.0%
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General and
administrative
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25,632
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25,337
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1.2%
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92,843
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83,596
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11.1%
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Depreciation and
amortization
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11,582
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8,614
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34.5%
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39,664
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31,961
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24.1%
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Total operating
expense
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118,864
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98,356
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20.9%
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434,292
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|
354,323
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22.6%
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Operating income
|
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32,289
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24,287
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32.9%
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121,059
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124,673
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(2.9%)
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Operating margin
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21.4%
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19.8%
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1.6pp
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21.8%
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26.0%
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(4.2)pp
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Non-operating income (expense),
net:
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Interest income, net
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745
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702
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6.1%
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2,437
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3,016
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(19.2%)
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Other income (expense),
net
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(61)
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(1,067)
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(94.3%)
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4,295
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(82)
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NMF
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Non-operating
income (expense), net
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684
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(365)
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NMF
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6,732
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2,934
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129.4%
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Income before income taxes and
equity in net income
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of unconsolidated
entities
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32,973
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23,922
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37.8%
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127,291
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127,607
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0.1%
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Income tax expense
|
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5,729
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|
9,571
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(40.1%)
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42,756
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46,775
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(8.6%)
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Equity in net income of
unconsolidated entities
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246
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375
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(34.4%)
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1,422
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1,165
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22.1%
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Consolidated net
income
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27,490
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14,726
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86.7%
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86,457
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81,997
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5.4%
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Net (income) loss attributable
to noncontrolling interests
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(97)
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92
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NMF
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(87)
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132
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NMF
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Net income attributable to
Morningstar, Inc.
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$
27,393
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$
14,818
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84.9%
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$
86,370
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$
82,129
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5.2%
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Net income per share
attributable to Morningstar, Inc.:
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Basic
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$
0.55
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$
0.30
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83.3%
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$
1.75
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$
1.71
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2.3%
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Diluted
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$
0.54
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$
0.29
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86.2%
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$
1.70
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$
1.65
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3.0%
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Weighted average common shares
outstanding:
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|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
49,523
|
|
48,652
|
|
|
|
49,249
|
|
48,112
|
|
|
|
|
Diluted
|
|
50,761
|
|
50,248
|
|
|
|
50,555
|
|
49,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December
31
|
|
Year ended December
31
|
|
|
|
|
2010
|
|
2009
|
|
|
|
2010
|
|
2009
|
|
|
|
(1) Includes stock-based
compensation expense of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
$
891
|
|
$
712
|
|
|
|
$
3,473
|
|
$
2,666
|
|
|
|
|
Development
|
|
481
|
|
393
|
|
|
|
1,840
|
|
1,570
|
|
|
|
|
Sales and marketing
|
|
428
|
|
402
|
|
|
|
1,786
|
|
1,587
|
|
|
|
|
General and
administrative
|
|
1,656
|
|
1,430
|
|
|
|
6,694
|
|
5,770
|
|
|
|
|
Total stock-based
compensation expense
|
|
$
3,456
|
|
$
2,937
|
|
|
|
$
13,793
|
|
$
11,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NMF — Not meaningful, pp —
percentage points
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Morningstar, Inc. and
Subsidiaries
|
|
Operating Expense as a
Percentage of Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December
31
|
|
Year ended December
31
|
|
|
|
|
2010
|
|
2009
|
|
change
|
|
2010
|
|
2009
|
|
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
100.0%
|
|
100.0%
|
|
-
|
|
100.0%
|
|
100.0%
|
|
-
|
|
Operating expense(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
28.0%
|
|
29.1%
|
|
(1.1)pp
|
|
28.3%
|
|
26.9%
|
|
1.4pp
|
|
|
Development
|
|
9.1%
|
|
8.3%
|
|
0.8pp
|
|
8.9%
|
|
8.0%
|
|
0.9pp
|
|
|
Sales and marketing
|
|
16.9%
|
|
15.1%
|
|
1.8pp
|
|
17.2%
|
|
15.0%
|
|
2.2pp
|
|
|
General and
administrative
|
|
17.0%
|
|
20.7%
|
|
(3.7)pp
|
|
16.7%
|
|
17.5%
|
|
(0.8)pp
|
|
|
Depreciation and
amortization
|
|
7.7%
|
|
7.0%
|
|
0.7pp
|
|
7.1%
|
|
6.7%
|
|
0.4pp
|
|
|
Total operating
expense(2)
|
|
78.6%
|
|
80.2%
|
|
(1.6)pp
|
|
78.2%
|
|
74.0%
|
|
4.2pp
|
|
Operating margin
|
|
21.4%
|
|
19.8%
|
|
1.6pp
|
|
21.8%
|
|
26.0%
|
|
(4.2)pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December
31
|
Year ended December
31
|
|
|
|
|
2010
|
|
2009
|
|
change
|
|
2010
|
|
2009
|
|
change
|
|
(1) Includes stock-based
compensation expense of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
0.6%
|
|
0.6%
|
|
-
|
|
0.6%
|
|
0.6%
|
|
-
|
|
|
Development
|
|
0.3%
|
|
0.3%
|
|
-
|
|
0.3%
|
|
0.3%
|
|
-
|
|
|
Sales and marketing
|
|
0.3%
|
|
0.3%
|
|
-
|
|
0.3%
|
|
0.3%
|
|
-
|
|
|
General and
administrative
|
|
1.1%
|
|
1.2%
|
|
(0.1)pp
|
|
1.2%
|
|
1.2%
|
|
-
|
|
|
Total stock-based
compensation expense(2)
|
|
2.3%
|
|
2.4%
|
|
(0.1)pp
|
|
2.5%
|
|
2.4%
|
|
0.1pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Sum of percentages may not
equal total because of rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Morningstar, Inc. and
Subsidiaries
|
|
Unaudited Condensed Consolidated
Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December
31
|
|
Year ended December
31
|
|
($000)
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
Consolidated net
income
|
|
$
27,490
|
|
$
14,726
|
|
$
86,457
|
|
$
81,997
|
|
Adjustments to reconcile
consolidated net income to net cash
|
|
|
|
|
|
|
|
|
|
flows from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
11,582
|
|
8,614
|
|
39,664
|
|
31,961
|
|
|
Deferred income tax (benefit)
expense
|
|
(5,448)
|
|
(1,465)
|
|
211
|
|
(2,207)
|
|
|
Stock-based compensation
expense
|
|
3,456
|
|
2,937
|
|
13,793
|
|
11,593
|
|
|
Equity in net income of
unconsolidated entities
|
|
(246)
|
|
(375)
|
|
(1,422)
|
|
(1,165)
|
|
|
Excess tax benefits from stock
option exercises
|
|
|
|
|
|
|
|
|
|
|
and vesting of restricted
stock units
|
|
(2,418)
|
|
(8,043)
|
|
(7,303)
|
|
(13,767)
|
|
|
Holding loss (gain) upon
acquisition of additional
|
|
|
|
|
|
|
|
|
|
|
ownership of equity method
investments
|
|
509
|
|
-
|
|
(4,564)
|
|
(352)
|
|
|
Other, net
|
|
(654)
|
|
2,141
|
|
323
|
|
1,867
|
|
Changes in operating assets and
liabilities, net of
|
|
|
|
|
|
|
|
|
|
effects of
acquisitions:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(16,398)
|
|
(1,157)
|
|
(23,652)
|
|
12,364
|
|
|
Other assets
|
|
167
|
|
315
|
|
(2,341)
|
|
2,521
|
|
|
Accounts payable and accrued
liabilities
|
|
(2,784)
|
|
(7,469)
|
|
(759)
|
|
(9,476)
|
|
|
Accrued compensation
|
|
14,436
|
|
15,065
|
|
12,166
|
|
(26,729)
|
|
|
Deferred revenue
|
|
7,690
|
|
270
|
|
5,752
|
|
(8,704)
|
|
|
Income taxes -
current
|
|
4,260
|
|
(1,323)
|
|
4,569
|
|
11,676
|
|
|
Deferred rent
|
|
922
|
|
5,422
|
|
1,364
|
|
5,679
|
|
|
Other liabilities
|
|
746
|
|
(809)
|
|
(638)
|
|
(1,076)
|
|
|
Cash provided by operating activities
|
|
43,310
|
|
28,849
|
|
123,620
|
|
96,182
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
Purchases of
investments
|
|
(58,240)
|
|
(65,167)
|
|
(186,283)
|
|
(176,770)
|
|
Proceeds from maturities and
sales of investments
|
|
37,732
|
|
28,372
|
|
214,929
|
|
92,851
|
|
Capital expenditures
|
|
(7,070)
|
|
(2,086)
|
|
(14,771)
|
|
(12,372)
|
|
Acquisitions, net of cash
acquired
|
|
(13,627)
|
|
(54,860)
|
|
(102,324)
|
|
(74,175)
|
|
Other, net
|
|
(330)
|
|
(4,832)
|
|
500
|
|
(4,209)
|
|
|
Cash
used for investing activities
|
|
(41,535)
|
|
(98,573)
|
|
(87,949)
|
|
(174,675)
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
Proceeds from stock option
exercises
|
|
4,013
|
|
2,061
|
|
9,220
|
|
16,439
|
|
Excess tax benefits from stock
option exercises
|
|
|
|
|
|
|
|
|
|
and vesting of restricted
stock units
|
|
2,418
|
|
8,043
|
|
7,303
|
|
13,767
|
|
Common shares
repurchased
|
|
(3,785)
|
|
-
|
|
(3,785)
|
|
-
|
|
Other, net
|
|
112
|
|
493
|
|
(417)
|
|
188
|
|
|
Cash
provided by financing activities
|
|
2,758
|
|
10,597
|
|
12,321
|
|
30,394
|
|
Effect of exchange rate changes
on cash and cash equivalents
|
(229)
|
|
223
|
|
1,688
|
|
4,704
|
|
Net increase (decrease) in cash
and cash equivalents
|
4,304
|
|
(58,904)
|
|
49,680
|
|
(43,395)
|
|
Cash and cash
equivalents—Beginning of period
|
|
175,872
|
|
189,400
|
|
130,496
|
|
173,891
|
|
Cash and cash equivalents—End of
period
|
|
$
180,176
|
|
$
130,496
|
|
$
180,176
|
|
$
130,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from cash
provided by operating activities to free cash flow (a non-GAAP
measure):
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December
31
|
|
Year ended December
31
|
|
($000)
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by operating
activities
|
|
$
43,310
|
|
$
28,849
|
|
$
123,620
|
|
$
96,182
|
|
Less: Capital
expenditures
|
|
(7,070)
|
|
(2,086)
|
|
(14,771)
|
|
(12,372)
|
|
Free cash flow
|
|
$
36,240
|
|
$
26,763
|
|
$
108,849
|
|
$
83,810
|
|
|
|
|
|
|
|
|
|
|
|
Morningstar, Inc. and
Subsidiaries
|
|
Unaudited Condensed Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31
|
|
December
31
|
|
($000)
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
180,176
|
|
$
130,496
|
|
|
Investments
|
|
|
|
185,240
|
|
212,057
|
|
|
Accounts receivable,
net
|
|
|
|
110,891
|
|
82,330
|
|
|
Deferred tax asset,
net
|
|
|
|
2,860
|
|
1,109
|
|
|
Income tax receivable,
net
|
|
|
|
10,459
|
|
5,541
|
|
|
Other
|
|
|
|
17,654
|
|
12,564
|
|
|
Total current assets
|
|
|
|
507,280
|
|
444,097
|
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
|
62,105
|
|
59,828
|
|
Investments in unconsolidated
entities
|
|
|
|
24,262
|
|
24,079
|
|
Goodwill
|
|
|
|
317,661
|
|
249,492
|
|
Intangible assets,
net
|
|
|
|
169,023
|
|
135,488
|
|
Other assets
|
|
|
|
5,971
|
|
6,099
|
|
|
Total assets
|
|
|
|
$
1,086,302
|
|
$
919,083
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
liabilities
|
|
|
|
$
42,680
|
|
$
30,524
|
|
|
Accrued compensation
|
|
|
|
62,404
|
|
48,902
|
|
|
Deferred revenue
|
|
|
|
146,267
|
|
127,114
|
|
|
Other
|
|
|
|
1,373
|
|
962
|
|
|
Total current liabilities
|
|
|
|
252,724
|
|
207,502
|
|
|
|
|
|
|
|
|
|
|
Accrued compensation
|
|
|
|
4,965
|
|
4,739
|
|
Deferred tax liability,
net
|
|
|
|
19,975
|
|
10,931
|
|
Other long-term
liabilities
|
|
|
|
27,213
|
|
26,413
|
|
|
Total liabilities
|
|
|
|
304,877
|
|
249,585
|
|
|
Total equity
|
|
|
|
781,425
|
|
669,498
|
|
|
Total liabilities and
equity
|
|
|
|
$
1,086,302
|
|
$
919,083
|
|
|
|
|
|
|
|
|
|
Morningstar, Inc. and
Subsidiaries
|
|
Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December
31
|
|
Year ended December
31
|
|
|
|
($000)
|
|
2010
|
|
2009
|
|
change
|
|
2010
|
|
2009
|
|
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Information
|
|
$
120,357
|
|
$
97,253
|
|
23.8%
|
|
$
444,957
|
|
$
386,642
|
|
15.1%
|
|
|
Investment Management
|
|
30,796
|
|
25,390
|
|
21.3%
|
|
110,394
|
|
92,354
|
|
19.5%
|
|
|
Consolidated revenue
|
|
$
151,153
|
|
$
122,643
|
|
23.2%
|
|
$
555,351
|
|
$
478,996
|
|
15.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue—U.S.
|
|
$
106,686
|
|
$
86,854
|
|
22.8%
|
|
$
398,215
|
|
$
349,836
|
|
13.8%
|
|
|
Revenue—International
|
|
$
44,467
|
|
$
35,789
|
|
24.2%
|
|
$
157,136
|
|
$
129,160
|
|
21.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue—U.S. (percentage of
consolidated revenue)
|
|
70.6%
|
|
70.8%
|
|
(0.2)pp
|
|
71.7%
|
|
73.0%
|
|
(1.3)pp
|
|
|
Revenue—International
(percentage of consolidated revenue)
|
|
29.4%
|
|
29.2%
|
|
0.2pp
|
|
28.3%
|
|
27.0%
|
|
1.3pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Information
|
|
$
31,641
|
|
$
31,162
|
|
1.5%
|
|
$
127,740
|
|
$
138,429
|
|
(7.7%)
|
|
|
Investment Management
|
|
15,679
|
|
13,609
|
|
15.2%
|
|
56,816
|
|
52,889
|
|
7.4%
|
|
|
Intangible amortization and
corporate depreciation expense
|
|
(9,164)
|
|
(6,992)
|
|
31.1%
|
|
(32,094)
|
|
(26,349)
|
|
21.8%
|
|
|
Corporate unallocated
|
|
(5,867)
|
|
(13,492)
|
|
(56.5%)
|
|
(31,403)
|
|
(40,296)
|
|
(22.1%)
|
|
|
Consolidated operating
income
|
|
$
32,289
|
|
$
24,287
|
|
32.9%
|
|
$
121,059
|
|
$
124,673
|
|
(2.9%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Information
|
|
26.3%
|
|
32.0%
|
|
(5.7)pp
|
|
28.7%
|
|
35.8%
|
|
(7.1)pp
|
|
|
Investment Management
|
|
50.9%
|
|
53.6%
|
|
(2.7)pp
|
|
51.5%
|
|
57.3%
|
|
(5.8)pp
|
|
|
Consolidated operating
margin
|
|
21.4%
|
|
19.8%
|
|
1.6pp
|
|
21.8%
|
|
26.0%
|
|
(4.2)pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes stock-based
compensation expense allocated to each segment.
|
|
|
|
|
|
|
|
|
Top Five Products
(Segment)
|
|
Revenue
|
|
%
of
|
|
Year Ended December 31,
2010
|
|
($000)
|
|
Revenue
|
|
Licensed Data (Investment
Information)
|
|
$
98,186
|
|
17.7%
|
|
Investment Consulting
(Investment Management)
|
|
72,798
|
|
13.1%
|
|
Morningstar Advisor Workstation
(Investment Information)
|
|
69,321
|
|
12.5%
|
|
Morningstar.com (Investment
Information)
|
|
49,673
|
|
8.9%
|
|
Morningstar Direct (Investment
Information)
|
|
38,069
|
|
6.9%
|
|
|
|
|
|
|
|
|
Top Five Products
(Segment)
|
|
Revenue
|
|
%
of
|
|
Year Ended December 31,
2009
|
|
($000)
|
|
Revenue
|
|
Licensed Data (Investment
Information)
|
|
$
91,524
|
|
19.1%
|
|
Morningstar Advisor Workstation
(Investment Information)
|
|
65,673
|
|
13.7%
|
|
Investment Consulting
(Investment Management)
|
|
62,531
|
|
13.1%
|
|
Morningstar.com (Investment
Information)
|
|
39,454
|
|
8.2%
|
|
Morningstar Direct (Investment
Information)
|
|
29,968
|
|
6.3%
|
|
|
|
|
|
|
|
Morningstar, Inc. and
Subsidiaries
|
|
Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
December 31
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
%
change
|
|
Our employees
|
|
|
|
|
|
|
|
|
|
Worldwide headcount
(approximate)
|
|
|
|
3,225
|
|
2,605
|
|
23.8%
|
|
Number of worldwide equity and
credit analysts
|
|
|
|
117
|
|
108
|
|
8.3%
|
|
Number of worldwide fund
analysts
|
|
|
|
95
|
|
82
|
(1)
|
15.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Our business
|
|
|
|
|
|
|
|
|
|
Investment
Information
|
|
|
|
|
|
|
|
|
|
Morningstar.com Premium
subscriptions (U.S.)
|
|
|
|
138,732
|
|
150,473
|
|
(7.8%)
|
|
Registered users for
Morningstar.com (U.S.)
|
|
|
|
6,300,033
|
|
6,219,597
|
|
1.3%
|
|
U.S. Advisor Workstation
licenses
|
|
|
|
153,170
|
|
148,392
|
|
3.2%
|
|
Principia
subscriptions
|
|
|
|
32,681
|
|
35,844
|
|
(8.8%)
|
|
Morningstar Direct
licenses
|
|
|
|
4,773
|
|
3,524
|
|
35.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management
|
|
|
|
|
|
|
|
|
|
Assets under management for
Morningstar Managed Portfolios
|
|
|
$2.7 bil
|
|
$2.1 bil
|
|
28.6%
|
|
Assets under management for
Ibbotson Australia (formerly Intech)
|
|
|
$3.4 bil
|
|
$3.4 bil
|
|
0.0%
|
|
Assets under management for
managed retirement accounts
|
|
|
|
$19.6 bil
|
|
$15.7 bil
|
|
24.8%
|
|
|
Morningstar
Associates
|
|
|
|
$2.0 bil
|
|
$1.5 bil
|
|
33.3%
|
|
|
Ibbotson Associates
|
|
|
|
$17.6 bil
|
|
$14.2 bil
|
|
23.9%
|
|
Assets under advisement for
Investment Consulting
|
|
|
|
$107.2 bil
|
|
$61.4 bil
|
|
74.6%
|
|
|
Morningstar
Associates
|
|
|
|
$60.8 bil
|
|
$21.5 bil
|
|
182.8%
|
|
|
Ibbotson Associates
|
|
|
|
$46.4 bil
|
|
$39.9 bil
|
|
16.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Morningstar has revised the
fund analysts total to only include employees responsible for
writing analyst research reports.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December
31
|
Year ended December
31
|
|
($000)
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Effective tax
rate
|
|
|
|
|
|
|
|
|
|
Income before income taxes and
equity in net income of
|
|
|
|
|
|
|
|
|
|
|
unconsolidated
entities
|
|
$
32,973
|
|
$
23,922
|
|
$
127,791
|
|
$
127,607
|
|
Equity in net income of
unconsolidated entities
|
|
246
|
|
375
|
|
1,422
|
|
1,165
|
|
Net (income) loss attributable
to noncontrolling interests
|
|
(97)
|
|
92
|
|
(87)
|
|
132
|
|
|
Total
|
|
$ 33,122
|
|
$
24,389
|
|
$
129,126
|
|
$
128,904
|
|
Income tax expense
|
|
$ 5,729
|
|
$
9,571
|
|
$
42,756
|
|
$
46,775
|
|
Effective tax rate
|
|
17.3%
|
|
39.2%
|
|
33.1%
|
|
36.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Morningstar, Inc. and
Subsidiaries
|
|
Reconciliations of Non-GAAP
Measures with the Nearest Comparable GAAP Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Morningstar includes an acquired
operation as part of revenue and expense from acquisitions for 12
months after we complete the acquisition. Operating
|
|
expense related to acquisitions
also includes amortization of intangible assets, professional fees,
and expense related to vacant office space incurred as
part
|
|
of the acquisition process. It's
important to note that it's difficult to precisely quantify the
amount of operating expense from acquisitions. We don't
always
|
|
maintain acquired operations as
stand-alone businesses and we often integrate administrative or
other functions with existing operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from consolidated
revenue to revenue excluding acquisitions and foreign currency
translations (organic revenue):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December
31
|
|
Year ended December
31
|
|
|
|
($000)
|
|
2010
|
|
2009
|
|
%
change
|
|
2010
|
|
2009
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated revenue
|
|
$
151,153
|
|
$
122,643
|
|
23.2%
|
|
$
555,351
|
|
$
478,996
|
|
15.9%
|
|
Less: acquisitions
|
|
(13,464)
|
|
-
|
|
NMF
|
|
(47,850)
|
|
-
|
|
NMF
|
|
Favorable impact of foreign
currency translations
|
|
(143)
|
|
-
|
|
NMF
|
|
(4,362)
|
|
-
|
|
NMF
|
|
Revenue excluding acquisitions
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
foreign currency
translations
|
|
$
137,546
|
|
$
122,643
|
|
12.2%
|
|
$
503,139
|
|
$
478,996
|
|
5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
international revenue to international revenue excluding
acquisitions and foreign currency translations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December
31
|
|
Year ended December
31
|
|
|
|
($000)
|
|
2010
|
|
2009
|
|
%
change
|
|
2010
|
|
2009
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International revenue
|
|
$
44,467
|
|
$
35,789
|
|
24.2%
|
|
$
157,136
|
|
$
129,160
|
|
21.7%
|
|
Less: acquisitions
|
|
(4,262)
|
|
-
|
|
NMF
|
|
(16,953)
|
|
-
|
|
NMF
|
|
Favorable impact of foreign
currency translations
|
|
(143)
|
|
-
|
|
NMF
|
|
(4,362)
|
|
-
|
|
NMF
|
|
International revenue excluding
acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and foreign currency
translations
|
|
$
40,062
|
|
$
35,789
|
|
11.9%
|
|
$
135,821
|
|
$
129,160
|
|
5.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table summarizes
the change in 2010 operating expense compared with 2009:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December
31
|
|
($000)
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
$
change
|
|
Total operating
expense
|
|
|
|
|
|
|
|
$
434,292
|
|
$
354,323
|
|
$ 79,969
|
|
Explanation of year over year
change in operating expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
$ 46,202
|
|
|
Unfavorable impact of foreign
currency translations
|
|
|
|
|
|
|
|
|
|
|
|
3,554
|
|
|
All other changes in operating
expense
|
|
|
|
|
|
|
|
|
|
|
|
3,213
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
$ 79,969
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below shows the period
in which we included each acquired operation in revenue and expense
from acquisitions:
|
|
|
|
Acquisition
|
|
|
|
Date of acquisition
|
|
2010 revenue and expense from
acquisitions
|
|
Global financial filings
database business of Global Reports LLC
|
|
April 20, 2009
|
|
January 1 through April 19,
2010
|
|
Equity research and data
business of C.P.M.S. Computerized Portfolio
Management Services
Inc.
|
|
May 1, 2009
|
|
January 1 through April 30,
2010
|
|
Andex Associates,
Inc.
|
|
|
|
May 1, 2009
|
|
January 1 through April 30,
2010
|
|
Intech Pty Ltd
|
|
|
|
June 30, 2009
|
|
January 1 through June 30,
2010
|
|
Canadian Investment Awards and
Gala
|
|
|
|
December 17, 2009
|
|
January 1 through December 16,
2010
|
|
Logical Information Machines,
Inc.
|
|
|
|
December 31, 2009
|
|
January 1 through December 31,
2010
|
|
Footnoted business of Financial
Fineprint Inc.
|
|
|
|
February 1, 2010
|
|
February 1 through December 31,
2010
|
|
Aegis Equities
Research
|
|
|
|
April 1, 2010
|
|
April 1 through December 31,
2010
|
|
Old Broad Street Research
Ltd.
|
|
|
|
April 12, 2010
|
|
April 12 through December 31,
2010
|
|
Realpoint, LLC
|
|
|
|
May 3, 2010
|
|
May 3 through December 31,
2010
|
|
Morningstar Danmark
A/S
|
|
|
|
July 1, 2010
|
|
July 1 through December 31,
2010
|
|
Seeds Group
|
|
|
|
July 1, 2010
|
|
July 1 through December 31,
2010
|
|
Annuity intelligence business of
Advanced Sales and Marketing Corporation
|
November 1, 2010
|
|
November 1 through December 31,
2010
|
|
|
|
|
|
|
|
|
SOURCE Morningstar, Inc.