Verisk (Nasdaq: VRSK), a leading global data analytics and
technology provider, today announced results for the third quarter
ended September 30, 2023.
Lee Shavel, president and CEO, Verisk: "I am pleased to share
that Verisk achieved strong third-quarter financial results
demonstrating the resilience of our economic model and the mission
critical nature of our solutions. Through our strategic dialogue
with clients, we are working to address the industry challenges of
elevated losses and profitability pressures that have characterized
this year. We remain keenly focused on our strategy to deliver
value for our clients which in turn will create long-term value for
shareholders."
Elizabeth Mann, CFO, Verisk: "Verisk delivered another strong
quarter marked by 9.4% OCC revenue growth and solid operating
leverage, leading to 11.8% OCC adjusted EBITDA growth. We
continue to be energized about the opportunity ahead and have
confidence in our ability to deliver on our growth strategy and
margin expansion commitments."
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.
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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|
|
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2023 |
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|
2022 |
|
|
Change |
|
|
2023 |
|
|
2022 |
|
|
Change |
|
Revenues |
|
$ |
677.6 |
|
|
$ |
610.1 |
|
|
|
11.1 |
% |
|
$ |
2,004.2 |
|
|
$ |
1,866.5 |
|
|
|
7.4 |
% |
Income from continuing
operations |
|
|
187.4 |
|
|
|
165.8 |
|
|
|
13.1 |
|
|
|
586.1 |
|
|
|
826.4 |
|
|
|
(29.1 |
) |
Adjusted EBITDA |
|
|
366.0 |
|
|
|
325.5 |
|
|
|
12.5 |
|
|
|
1,071.5 |
|
|
|
952.5 |
|
|
|
12.5 |
|
Diluted EPS attributable to
Verisk |
|
|
1.29 |
|
|
|
1.05 |
|
|
|
22.9 |
|
|
|
3.96 |
|
|
|
5.18 |
|
|
|
(23.6 |
) |
Diluted adjusted EPS |
|
|
1.52 |
|
|
|
1.20 |
|
|
|
26.7 |
|
|
|
4.31 |
|
|
|
3.58 |
|
|
|
20.4 |
|
Net cash provided by operating
activities |
|
|
250.1 |
|
|
|
280.2 |
|
|
|
(10.7 |
) |
|
|
808.3 |
|
|
|
810.0 |
|
|
|
(0.2 |
) |
Free cash flow |
|
|
195.8 |
|
|
|
214.4 |
|
|
|
(8.7 |
) |
|
|
634.6 |
|
|
|
615.0 |
|
|
|
3.2 |
|
Revenues from Continuing Operations
Consolidated and OCC revenues increased 11.1% and 9.4%,
respectively, due to strong growth in underwriting and claims
within our Insurance segment.
Revenues and Revenue Growth by Segment(in
millions)Note: OCC revenue growth is a non-GAAP measure.
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Revenue Growth |
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|
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Three Months Ended |
|
|
Three Months Ended |
|
|
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September 30, |
|
|
September 30, 2023 |
|
|
|
2023 |
|
|
2022 |
|
|
Reported |
|
|
OCC |
|
Underwriting |
|
$ |
475.2 |
|
|
$ |
436.2 |
|
|
|
8.9 |
% |
|
|
8.3 |
% |
Claims |
|
|
202.4 |
|
|
|
173.9 |
|
|
|
16.4 |
|
|
|
12.2 |
|
Insurance |
|
|
677.6 |
|
|
|
610.1 |
|
|
|
11.1 |
|
|
|
9.4 |
|
|
|
|
|
|
|
|
|
|
|
Revenue Growth |
|
|
|
Nine Months Ended |
|
|
Nine Months Ended |
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September 30, |
|
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September 30, 2023 |
|
|
|
2023 |
|
|
2022 |
|
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Reported |
|
|
OCC |
|
Underwriting |
|
$ |
1,413.7 |
|
|
$ |
1,290.0 |
|
|
|
9.6 |
% |
|
|
8.9 |
% |
Claims |
|
|
590.5 |
|
|
|
516.5 |
|
|
|
14.3 |
|
|
|
11.6 |
|
Insurance |
|
|
2,004.2 |
|
|
|
1,806.5 |
|
|
|
10.9 |
|
|
|
9.7 |
|
Specialized Markets |
|
|
— |
|
|
|
22.4 |
|
|
|
- |
|
|
|
N/A |
|
Financial Services |
|
|
— |
|
|
|
37.6 |
|
|
|
- |
|
|
|
N/A |
|
Revenues |
|
$ |
2,004.2 |
|
|
$ |
1,866.5 |
|
|
|
7.4 |
|
|
|
9.7 |
|
Insurance segment revenues grew 11.1% in the third quarter
and 9.4% on an OCC basis.
- Underwriting revenues increased 8.9% in the quarter
and 8.3% on an OCC basis, resulting primarily from solid
growth across our forms, rules, and loss cost services,
underwriting data solutions, life insurance, extreme event
solutions, and specialty business solutions.
- Claims revenues grew 16.4% in the quarter and 12.2%
on an OCC basis. Growth was broad-based with strong results
recorded in property estimating solutions, anti-fraud,
international, and casualty solutions.
There was no Energy and Specialized Markets segment revenue in
the quarter. We closed on the sale of the Energy business on
February 1, 2023, and accounted for it as discontinued
operations. We closed on the sale of 3E on March 11, 2022.
There was no Financial Services segment revenue in the
quarter as we closed on its sale on April 8,
2022.
Net Income and Adjusted EBITDA from Continuing
Operations
During third-quarter 2023, net income from continuing
operations was $187.4 million, an
increase of 13.1%. The increase in income from
continuing operations was primarily due to growth in Insurance
offset in part by a $19.2 million litigation reserve
expense, associated with an indemnification for an
ongoing inquiry related to our former Financial Services segment,
which was sold in April 2022. Adjusted EBITDA increased 12.5%,
and 11.8% on an OCC basis, primarily due to strong
revenue growth and cost discipline.
EBITDA and Adjusted EBITDA by Segment(in
millions)Note: Consolidated EBITDA and Adjusted EBITDA
are non-GAAP measures. Margin is calculated as a percentage of
revenues. See "Non-GAAP Reconciliations" below for a reconciliation
to the nearest GAAP measure. All OCC figures exclude
results from recent dispositions, namely 3E, Energy, and
Verisk Financial Services. Segment-level adjusted EBITDA margins
for 2023 reflect a higher level of corporate allocations
resulting from recent dispositions and the impact of foreign
currency fluctuations.
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|
Three Months Ended September 30, |
|
|
|
EBITDA |
|
|
EBITDA Growth |
|
|
EBITDA Margin |
|
|
Adjusted EBITDA |
|
|
Adjusted EBITDA Growth |
|
|
Adjusted EBITDA Margin |
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|
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|
2023 |
|
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|
2023 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
Reported |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Reported |
|
|
OCC |
|
|
2023 |
|
|
2022 |
|
Insurance |
|
$ |
346.8 |
|
|
$ |
327.1 |
|
|
|
6.0 |
% |
|
|
51.2 |
% |
|
|
53.6 |
% |
|
$ |
366.0 |
|
|
$ |
334.8 |
|
|
|
9.3 |
% |
|
|
11.8 |
% |
|
|
54.0 |
% |
|
|
54.9 |
% |
Energy and Specialized
Markets |
|
|
— |
|
|
|
(13.2 |
) |
|
|
— |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
— |
|
|
|
(9.3 |
) |
|
|
— |
|
|
|
N/A |
|
|
|
— |
|
|
|
N/A |
|
Financial Services |
|
|
— |
|
|
|
(1.4 |
) |
|
|
— |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
N/A |
|
|
|
— |
|
|
|
N/A |
|
Consolidated |
|
$ |
346.8 |
|
|
$ |
312.5 |
|
|
|
11.0 |
|
|
|
51.2 |
|
|
|
51.2 |
|
|
$ |
366.0 |
|
|
$ |
325.5 |
|
|
|
12.5 |
|
|
|
11.8 |
|
|
|
54.0 |
|
|
|
53.3 |
|
|
|
Nine Months Ended September 30, |
|
|
|
EBITDA |
|
|
EBITDA Growth |
|
|
EBITDA Margin |
|
|
Adjusted EBITDA |
|
|
Adjusted EBITDA Growth |
|
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
Reported |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Reported |
|
|
OCC |
|
|
2023 |
|
|
2022 |
|
Insurance |
|
$ |
1,067.2 |
|
|
$ |
960.2 |
|
|
|
11.1 |
% |
|
|
53.3 |
% |
|
|
53.2 |
% |
|
$ |
1,071.5 |
|
|
$ |
967.9 |
|
|
|
10.7 |
% |
|
|
13.3 |
% |
|
|
53.5 |
% |
|
|
53.6 |
% |
Energy and Specialized
Markets |
|
|
— |
|
|
|
425.7 |
|
|
|
— |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
— |
|
|
|
(22.0 |
) |
|
|
— |
|
|
|
N/A |
|
|
|
— |
|
|
|
N/A |
|
Financial Services |
|
|
— |
|
|
|
(86.7 |
) |
|
|
— |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
— |
|
|
|
6.6 |
|
|
|
— |
|
|
|
N/A |
|
|
|
— |
|
|
|
N/A |
|
Consolidated |
|
$ |
1,067.2 |
|
|
$ |
1,299.2 |
|
|
|
(17.9 |
) |
|
|
53.3 |
|
|
|
69.6 |
|
|
$ |
1,071.5 |
|
|
$ |
952.5 |
|
|
|
12.5 |
|
|
|
13.3 |
|
|
|
53.5 |
|
|
|
51.0 |
|
Earnings Per Share and Diluted Adjusted Earnings Per
Share
Diluted EPS attributable to Verisk increased 22.9% to
$1.29 for the third quarter of 2023. Diluted adjusted EPS
increased 26.7% to $1.52 for the third quarter of
2023. Diluted adjusted EPS growth reflects strong revenue and
profit growth, lower net interest expense and the benefit from our
accelerated share repurchase program.
Cash Flow and Free Cash Flow
Net cash provided by operating activities was
$250.1 million for the third quarter of 2023, down 10.7%,
and free cash flow was $195.8 million, down 8.7%. The
decline in operating cash flow was the result of lower tax payments
in the prior year due to an overpayment of estimated tax
carried forward to the third quarter.
Dividend
On September 30, 2023, we paid a cash dividend of 34 cents
per share of common stock issued and outstanding to the holders of
record as of September 15, 2023.
On October 25, 2023, our Board of Directors approved a cash
dividend of 34 cents per share of common stock issued and
outstanding, payable on December 29, 2023, to holders of
record as of December 15, 2023.
Share Repurchases
During the third quarter, we repurchased $49.8 million
of common stock at an average price of $239.20. This was in
addition to the $2.5 billion accelerated share repurchase
program initiated during the first quarter and is expected to be
completed in the fourth quarter. As of September 30, 2023, we had
$891.5 million remaining under our share repurchase
authorization.
2023 Financial Guidance
Our guidance for 2023 remains unchanged with revenue in the
range of $2.63-$2.66 billion, adjusted EBITDA between $1.39-$1.43
billion, adjusted EBITDA margin in the 53%-54% range and adjusted
EPS in the range of $5.50-$5.70. A complete listing of all guidance
measures can be found in the earnings slide deck, which has been
posted to the investor section of our website verisk.com. The
contents of our website shall not be deemed to be incorporated
by reference herein.
Conference Call
Our management team will host a live audio webcast to discuss
the financial results and business highlights on Wednesday,
November 1, 2023, at 8:00 a.m. EST (5:00 a.m. PT, 12:00 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
1-888-660-6191 for U.S./Canada participants or 929-203-1913 for
international participants.
A replay of the webcast will be available for 30 days on our
investor website and through the conference call number
1-800-770-2030 for U.S./Canada participants or
647-362-9199 for international participants using Conference
ID #4026897.
About Verisk
Verisk is a leading strategic data analytics and technology
partner to the global insurance industry. It empowers clients to
strengthen operating efficiency, improve underwriting and claims
outcomes, combat fraud and make informed decisions about global
risks, including climate change, extreme events, ESG and political
issues. Through advanced data analytics, software, scientific
research and deep industry knowledge, Verisk helps build global
resilience for individuals, communities and businesses. With teams
across more than 20 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 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, net; 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), and
nonrecurring gain/loss associated with cost-based and equity-method
investments 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.
We are not able to provide a reconciliation of projected
Adjusted EBITDA and Adjusted EBITDA margin to the most directly
comparable expected GAAP results because of the unreasonable effort
and high unpredictability of estimating certain items that are
excluded from non-GAAP Adjusted EBITDA and Adjusted EBITDA margin,
including, for example, tax consequences, acquisition-related
costs, gain/loss from dispositions and other non-recurring
expenses, the effect of which may be significant.
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, 2023 and
December 31, 2022
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
|
|
(in millions, except for share and per share
data) |
|
ASSETS: |
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
416.8 |
|
|
$ |
112.5 |
|
Accounts receivable, net of allowance for doubtful accounts of
$16.1 and $14.3, respectively |
|
|
353.4 |
|
|
|
290.1 |
|
Prepaid expenses |
|
|
89.8 |
|
|
|
83.7 |
|
Income taxes receivable |
|
|
16.6 |
|
|
|
44.2 |
|
Other current assets |
|
|
51.6 |
|
|
|
32.0 |
|
Current assets held-for-sale |
|
|
— |
|
|
|
362.6 |
|
Total current assets |
|
|
928.2 |
|
|
|
925.1 |
|
Noncurrent assets: |
|
|
|
|
|
|
|
|
Fixed assets, net |
|
|
611.7 |
|
|
|
541.5 |
|
Operating lease right-of-use assets, net |
|
|
190.8 |
|
|
|
182.0 |
|
Intangible assets, net |
|
|
481.5 |
|
|
|
504.8 |
|
Goodwill |
|
|
1,731.8 |
|
|
|
1,676.0 |
|
Deferred income tax assets |
|
|
32.0 |
|
|
|
31.7 |
|
Other noncurrent assets |
|
|
387.9 |
|
|
|
371.4 |
|
Noncurrent assets held-for-sale |
|
|
— |
|
|
|
2,728.6 |
|
Total assets |
|
$ |
4,363.9 |
|
|
$ |
6,961.1 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY: |
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
300.9 |
|
|
$ |
292.8 |
|
Short-term debt and current portion of long-term debt |
|
|
12.4 |
|
|
|
1,392.9 |
|
Deferred revenues |
|
|
423.8 |
|
|
|
321.7 |
|
Operating lease liabilities |
|
|
43.9 |
|
|
|
29.5 |
|
Income taxes payable |
|
|
3.1 |
|
|
|
— |
|
Current liabilities held-for-sale |
|
|
— |
|
|
|
282.3 |
|
Total current liabilities |
|
|
784.1 |
|
|
|
2,319.2 |
|
Noncurrent liabilities: |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
2,854.4 |
|
|
|
2,343.2 |
|
Deferred income tax liabilities |
|
|
129.2 |
|
|
|
145.6 |
|
Operating lease liabilities |
|
|
184.6 |
|
|
|
189.9 |
|
Other noncurrent liabilities |
|
|
16.4 |
|
|
|
17.9 |
|
Noncurrent liabilities
held-for-sale |
|
|
— |
|
|
|
177.6 |
|
Total liabilities |
|
|
3,968.7 |
|
|
|
5,193.4 |
|
Commitments and contingencies
(Note 16) |
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock, $.001 par value; 2,000,000,000 shares authorized;
544,003,038 shares issued; 144,965,254 and 154,701,136 shares
outstanding, respectively |
|
|
0.1 |
|
|
|
0.1 |
|
Additional paid-in capital |
|
|
2,396.2 |
|
|
|
2,720.8 |
|
Treasury stock, at cost, 399,037,784 and 389,301,902 shares,
respectively |
|
|
(8,319.4 |
) |
|
|
(6,239.5 |
) |
Retained earnings |
|
|
6,291.8 |
|
|
|
5,999.1 |
|
Accumulated other comprehensive income (loss) |
|
|
15.8 |
|
|
|
(731.2 |
) |
Total Verisk stockholders' equity |
|
|
384.5 |
|
|
|
1,749.3 |
|
Noncontrolling interests |
|
|
10.7 |
|
|
|
18.4 |
|
Total stockholders’ equity |
|
|
395.2 |
|
|
|
1,767.7 |
|
Total liabilities and stockholders’ equity |
|
$ |
4,363.9 |
|
|
$ |
6,961.1 |
|
VERISK ANALYTICS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)For the Three and Nine
Months Ended September 30, 2023 and 2022
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(in millions, except for share and per share
data) |
|
Revenues |
|
$ |
677.6 |
|
|
$ |
610.1 |
|
|
$ |
2,004.2 |
|
|
$ |
1,866.5 |
|
Operating expenses
(income): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues (exclusive of items shown separately below) |
|
|
217.2 |
|
|
|
195.2 |
|
|
|
650.3 |
|
|
|
619.4 |
|
Selling, general and administrative |
|
|
111.6 |
|
|
|
96.5 |
|
|
|
277.4 |
|
|
|
300.7 |
|
Depreciation and amortization of fixed assets |
|
|
48.1 |
|
|
|
41.5 |
|
|
|
139.2 |
|
|
|
121.1 |
|
Amortization of intangible assets |
|
|
19.6 |
|
|
|
18.0 |
|
|
|
56.1 |
|
|
|
57.5 |
|
Other operating loss (income), net |
|
|
— |
|
|
|
5.3 |
|
|
|
— |
|
|
|
(356.2 |
) |
Total operating expenses, net |
|
|
396.5 |
|
|
|
356.5 |
|
|
|
1,123.0 |
|
|
|
742.5 |
|
Operating income |
|
|
281.1 |
|
|
|
253.6 |
|
|
|
881.2 |
|
|
|
1,124.0 |
|
Other expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment loss |
|
|
(2.0 |
) |
|
|
(0.6 |
) |
|
|
(9.3 |
) |
|
|
(3.4 |
) |
Interest expense, net |
|
|
(29.4 |
) |
|
|
(34.4 |
) |
|
|
(87.4 |
) |
|
|
(97.6 |
) |
Total other expense, net |
|
|
(31.4 |
) |
|
|
(35.0 |
) |
|
|
(96.7 |
) |
|
|
(101.0 |
) |
Income from continuing
operations before income taxes |
|
|
249.7 |
|
|
|
218.6 |
|
|
|
784.5 |
|
|
|
1,023.0 |
|
Provision for income
taxes |
|
|
(62.3 |
) |
|
|
(52.8 |
) |
|
|
(198.4 |
) |
|
|
(196.6 |
) |
Income from continuing operations |
|
|
187.4 |
|
|
|
165.8 |
|
|
|
586.1 |
|
|
|
826.4 |
|
Income (loss) from discontinued operations net of tax expense of
$0.0, $(2.9), $(0.2), and $(8.3), respectively (Note 7) |
|
|
— |
|
|
|
23.7 |
|
|
|
(145.5 |
) |
|
|
66.7 |
|
Net income |
|
|
187.4 |
|
|
|
189.5 |
|
|
|
440.6 |
|
|
|
893.1 |
|
Less: Net income attributable to noncontrolling interests |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.3 |
) |
Net income attributable to Verisk |
|
$ |
187.4 |
|
|
$ |
189.4 |
|
|
$ |
440.6 |
|
|
$ |
892.8 |
|
Basic net income per share
attributable to Verisk: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
1.29 |
|
|
$ |
1.06 |
|
|
$ |
3.98 |
|
|
$ |
5.21 |
|
Income (loss) from discontinued operations |
|
|
— |
|
|
|
0.15 |
|
|
|
(0.99 |
) |
|
|
0.42 |
|
Basic net income per share attributable to Verisk: |
|
$ |
1.29 |
|
|
$ |
1.21 |
|
|
$ |
2.99 |
|
|
$ |
5.63 |
|
Diluted net income per share
attributable to Verisk: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
1.29 |
|
|
$ |
1.05 |
|
|
$ |
3.96 |
|
|
$ |
5.18 |
|
Income (loss) from discontinued operations |
|
|
— |
|
|
|
0.15 |
|
|
|
(0.98 |
) |
|
|
0.41 |
|
Diluted net income per share attributable to Verisk: |
|
$ |
1.29 |
|
|
$ |
1.20 |
|
|
$ |
2.98 |
|
|
$ |
5.59 |
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
145,011,020 |
|
|
|
156,940,608 |
|
|
|
147,292,590 |
|
|
|
158,531,439 |
|
Diluted |
|
|
145,742,519 |
|
|
|
157,978,606 |
|
|
|
147,983,986 |
|
|
|
159,580,262 |
|
VERISK ANALYTICS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (UNAUDITED)For the Three and Nine
Months Ended September 30, 2023 and 2022
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(in millions) |
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
187.4 |
|
|
$ |
189.5 |
|
|
$ |
440.6 |
|
|
$ |
893.1 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of fixed assets |
|
|
48.1 |
|
|
|
51.7 |
|
|
|
139.2 |
|
|
|
151.1 |
|
Amortization of intangible assets |
|
|
19.6 |
|
|
|
36.6 |
|
|
|
56.1 |
|
|
|
121.0 |
|
Amortization of debt issuance costs and original issue discount,
net of original issue premium |
|
|
0.4 |
|
|
|
0.2 |
|
|
|
1.0 |
|
|
|
0.9 |
|
Provision for doubtful accounts |
|
|
3.4 |
|
|
|
1.5 |
|
|
|
8.9 |
|
|
|
4.4 |
|
Loss (gain) on sale of assets |
|
|
— |
|
|
|
7.8 |
|
|
|
135.3 |
|
|
|
(427.4 |
) |
Impairment of cost-based investments |
|
|
— |
|
|
|
— |
|
|
|
6.5 |
|
|
|
— |
|
Stock-based compensation expense |
|
|
12.4 |
|
|
|
11.3 |
|
|
|
46.3 |
|
|
|
50.2 |
|
Impairment of long-lived assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
73.7 |
|
Deferred income taxes |
|
|
(9.2 |
) |
|
|
(11.9 |
) |
|
|
(25.9 |
) |
|
|
(61.3 |
) |
Loss on disposal of fixed assets |
|
|
2.4 |
|
|
|
0.1 |
|
|
|
2.3 |
|
|
|
0.8 |
|
Acquisition related liability adjustment |
|
|
— |
|
|
|
— |
|
|
|
(22.0 |
) |
|
|
— |
|
Changes in assets and liabilities, net of effects from
acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
22.9 |
|
|
|
21.0 |
|
|
|
(104.3 |
) |
|
|
(82.3 |
) |
Prepaid expenses and other assets |
|
|
0.6 |
|
|
|
6.0 |
|
|
|
(36.8 |
) |
|
|
(11.5 |
) |
Operating lease right-of-use assets, net |
|
|
8.5 |
|
|
|
16.6 |
|
|
|
21.4 |
|
|
|
35.3 |
|
Income taxes |
|
|
5.5 |
|
|
|
24.9 |
|
|
|
13.5 |
|
|
|
2.3 |
|
Accounts payable and accrued liabilities |
|
|
38.3 |
|
|
|
36.4 |
|
|
|
37.4 |
|
|
|
(27.2 |
) |
Deferred revenues |
|
|
(43.6 |
) |
|
|
(93.4 |
) |
|
|
131.1 |
|
|
|
134.3 |
|
Operating lease liabilities |
|
|
(8.1 |
) |
|
|
(18.0 |
) |
|
|
(21.2 |
) |
|
|
(38.2 |
) |
Other liabilities |
|
|
(38.5 |
) |
|
|
(0.1 |
) |
|
|
(21.1 |
) |
|
|
(9.2 |
) |
Net cash provided by operating activities |
|
|
250.1 |
|
|
|
280.2 |
|
|
|
808.3 |
|
|
|
810.0 |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions and purchase of additional controlling interest, net
of cash acquired of $0.0, $0.0, $8.0, and $17.4, respectively |
|
|
— |
|
|
|
— |
|
|
|
(83.3 |
) |
|
|
(448.9 |
) |
Proceeds from sale of assets |
|
|
— |
|
|
|
— |
|
|
|
3,066.4 |
|
|
|
1,073.3 |
|
Investments in nonpublic companies |
|
|
(0.9 |
) |
|
|
(2.1 |
) |
|
|
(1.7 |
) |
|
|
(43.9 |
) |
Capital expenditures |
|
|
(54.3 |
) |
|
|
(65.8 |
) |
|
|
(173.7 |
) |
|
|
(195.0 |
) |
Escrow funding associated with acquisitions |
|
|
— |
|
|
|
— |
|
|
|
(3.8 |
) |
|
|
(2.3 |
) |
Other investing activities, net |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.4 |
) |
|
|
— |
|
Net cash (used in) provided by investing activities |
|
|
(55.3 |
) |
|
|
(67.9 |
) |
|
|
2,803.5 |
|
|
|
383.2 |
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(in millions) |
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of long-term debt, net of original issue
discount |
|
|
— |
|
|
|
— |
|
|
|
495.2 |
|
|
|
— |
|
Payment of debt issuance costs |
|
|
0.7 |
|
|
|
— |
|
|
|
(6.0 |
) |
|
|
— |
|
Proceeds (repayment) of short-term debt |
|
|
— |
|
|
|
290.0 |
|
|
|
(1,265.0 |
) |
|
|
330.0 |
|
Repayment of
long-term-debt |
|
|
— |
|
|
|
(350.0 |
) |
|
|
— |
|
|
|
(350.0 |
) |
Repayment of short-term debt with original maturities greater than
three months |
|
|
— |
|
|
|
— |
|
|
|
(125.0 |
) |
|
|
— |
|
Proceeds from issuance of short-term debt with original maturities
less than three months |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
125.0 |
|
Repurchases of common stock |
|
|
(49.8 |
) |
|
|
(300.0 |
) |
|
|
(2,049.8 |
) |
|
|
(1,196.3 |
) |
Share repurchases not yet settled |
|
|
— |
|
|
|
— |
|
|
|
(500.0 |
) |
|
|
— |
|
Proceeds from stock options exercised |
|
|
19.4 |
|
|
|
18.6 |
|
|
|
134.3 |
|
|
|
111.6 |
|
Net share settlement of taxes from restricted stock and performance
share awards |
|
|
(0.3 |
) |
|
|
(0.4 |
) |
|
|
(14.0 |
) |
|
|
(20.4 |
) |
Dividends paid |
|
|
(49.2 |
) |
|
|
(48.6 |
) |
|
|
(147.9 |
) |
|
|
(147.2 |
) |
Other financing activities, net |
|
|
(10.4 |
) |
|
|
(9.4 |
) |
|
|
(13.2 |
) |
|
|
(13.5 |
) |
Net cash used in financing activities |
|
|
(89.6 |
) |
|
|
(399.8 |
) |
|
|
(3,491.4 |
) |
|
|
(1,160.8 |
) |
Effect of exchange rate changes |
|
|
2.9 |
|
|
|
(16.4 |
) |
|
|
3.7 |
|
|
|
(35.9 |
) |
Net increase in cash and cash equivalents |
|
|
108.1 |
|
|
|
(203.9 |
) |
|
|
124.1 |
|
|
|
(3.5 |
) |
Cash and cash equivalents, beginning of period |
|
|
308.7 |
|
|
|
480.7 |
|
|
|
292.7 |
|
|
|
280.3 |
|
Cash and cash equivalents, end of period |
|
$ |
416.8 |
|
|
$ |
276.8 |
|
|
$ |
416.8 |
|
|
$ |
276.8 |
|
Supplemental disclosures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes paid |
|
$ |
66.0 |
|
|
$ |
42.6 |
|
|
$ |
210.9 |
|
|
$ |
264.4 |
|
Interest paid |
|
$ |
8.5 |
|
|
$ |
13.7 |
|
|
$ |
60.9 |
|
|
$ |
74.3 |
|
Noncash investing and
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax (asset) liability established on date of
acquisition |
|
$ |
(1.4 |
) |
|
$ |
— |
|
|
$ |
8.9 |
|
|
$ |
16.5 |
|
Net assets sold as part of the disposition |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,211.8 |
|
|
$ |
607.4 |
|
Finance lease additions |
|
$ |
30.6 |
|
|
$ |
1.4 |
|
|
$ |
43.7 |
|
|
$ |
4.9 |
|
Operating lease additions, net |
|
$ |
3.6 |
|
|
$ |
7.6 |
|
|
$ |
29.4 |
|
|
$ |
15.9 |
|
Fixed assets included in accounts payable and accrued
liabilities |
|
$ |
(0.2 |
) |
|
$ |
0.2 |
|
|
$ |
0.1 |
|
|
$ |
0.2 |
|
Non-GAAP Reconciliations
Consolidated EBITDA, Adjusted EBITDA and Organic
Adjusted EBITDA Reconciliation (in
millions)Note: EBITDA, adjusted EBITDA, and organic adjusted EBITDA
are non-GAAP measures. Margin is calculated as a percentage of
revenues.
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
Total |
|
|
Margin |
|
|
Total |
|
|
Margin |
|
|
Total |
|
|
Margin |
|
|
Total |
|
|
Margin |
|
Net income |
|
$ |
187.4 |
|
|
|
27.7 |
% |
|
$ |
189.5 |
|
|
|
31.1 |
% |
|
$ |
440.6 |
|
|
|
22.0 |
% |
|
$ |
893.1 |
|
|
|
47.9 |
% |
Less: Income (loss) income
from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
23.7 |
|
|
|
3.9 |
|
|
|
(145.5 |
) |
|
|
(7.3 |
) |
|
|
66.7 |
|
|
|
3.6 |
|
Income from continuing operations |
|
|
187.4 |
|
|
|
27.7 |
% |
|
|
165.8 |
|
|
|
27.2 |
% |
|
|
586.1 |
|
|
|
29.2 |
% |
|
|
826.4 |
|
|
|
44.3 |
% |
Depreciation and amortization
of fixed assets |
|
|
48.1 |
|
|
|
7.1 |
|
|
|
41.5 |
|
|
|
6.8 |
|
|
|
139.2 |
|
|
|
6.9 |
|
|
|
121.1 |
|
|
|
6.5 |
|
Amortization of intangible
assets |
|
|
19.6 |
|
|
|
2.9 |
|
|
|
18.0 |
|
|
|
2.9 |
|
|
|
56.1 |
|
|
|
2.9 |
|
|
|
57.5 |
|
|
|
3.1 |
|
Interest expense, net |
|
|
29.4 |
|
|
|
4.3 |
|
|
|
34.4 |
|
|
|
5.6 |
|
|
|
87.4 |
|
|
|
4.4 |
|
|
|
97.6 |
|
|
|
5.2 |
|
Provision for income
taxes |
|
|
62.3 |
|
|
|
9.2 |
|
|
|
52.8 |
|
|
|
8.7 |
|
|
|
198.4 |
|
|
|
9.9 |
|
|
|
196.6 |
|
|
|
10.5 |
|
EBITDA |
|
|
346.8 |
|
|
|
51.2 |
|
|
|
312.5 |
|
|
|
51.2 |
|
|
|
1,067.2 |
|
|
|
53.3 |
|
|
|
1,299.2 |
|
|
|
69.6 |
|
Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
73.7 |
|
|
|
3.9 |
|
Acquisition-related costs
(earn-outs) |
|
|
— |
|
|
|
— |
|
|
|
7.7 |
|
|
|
1.2 |
|
|
|
(21.4 |
) |
|
|
(1.1 |
) |
|
|
7.7 |
|
|
|
0.4 |
|
Impairment of cost-based
investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6.5 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
— |
|
Loss (gain) from
dispositions |
|
|
— |
|
|
|
— |
|
|
|
5.3 |
|
|
|
0.9 |
|
|
|
— |
|
|
|
— |
|
|
|
(429.9 |
) |
|
|
(23.0 |
) |
Severance expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.8 |
|
|
|
0.1 |
|
Litigation reserve |
|
|
19.2 |
|
|
|
2.8 |
|
|
|
— |
|
|
|
— |
|
|
|
19.2 |
|
|
|
1.0 |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
|
|
366.0 |
|
|
|
54.0 |
|
|
|
325.5 |
|
|
|
53.3 |
|
|
|
1,071.5 |
|
|
|
53.5 |
|
|
|
952.5 |
|
|
|
51.0 |
|
Adjusted EBITDA from
acquisitions and dispositions |
|
|
(1.6 |
) |
|
|
|
|
|
|
1.0 |
|
|
|
|
|
|
|
(7.4 |
) |
|
|
|
|
|
|
(13.9 |
) |
|
|
|
|
Organic adjusted EBITDA |
|
$ |
364.4 |
|
|
|
54.4 |
|
|
$ |
326.5 |
|
|
|
53.5 |
|
|
$ |
1,064.1 |
|
|
|
54.1 |
|
|
$ |
938.6 |
|
|
|
52.3 |
|
Segment Results Summary, EBITDA 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, 2023 |
|
|
Three Months Ended September 30, 2022 |
|
|
|
Insurance |
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
Revenues |
|
$ |
677.6 |
|
|
$ |
610.1 |
|
|
$ |
— |
|
|
$ |
— |
|
Revenues from acquisitions and
dispositions |
|
|
(7.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Organic revenues |
|
$ |
670.5 |
|
|
$ |
610.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
346.8 |
|
|
$ |
327.1 |
|
|
$ |
(13.2 |
) |
|
$ |
(1.4 |
) |
Acquisition-related costs
(earn-outs) |
|
|
— |
|
|
|
7.7 |
|
|
|
— |
|
|
|
— |
|
Loss from dispositions |
|
|
— |
|
|
|
— |
|
|
|
3.9 |
|
|
|
1.4 |
|
Litigation reserve |
|
|
19.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
|
|
366.0 |
|
|
|
334.8 |
|
|
|
(9.3 |
) |
|
|
— |
|
Adjusted EBITDA from
acquisitions and dispositions |
|
|
(1.6 |
) |
|
|
(8.3 |
) |
|
|
9.3 |
|
|
|
— |
|
Organic adjusted EBITDA |
|
$ |
364.4 |
|
|
$ |
326.5 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
Nine Months Ended September 30, 2023 |
|
|
Nine Months Ended September 30, 2022 |
|
|
|
Insurance |
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
Revenues |
|
$ |
2,004.2 |
|
|
$ |
1,806.5 |
|
|
$ |
22.4 |
|
|
$ |
37.6 |
|
Revenues from acquisitions and
dispositions |
|
|
(36.0 |
) |
|
|
(10.5 |
) |
|
|
(22.4 |
) |
|
|
(37.6 |
) |
Organic revenues |
|
$ |
1,968.2 |
|
|
$ |
1,796.0 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
1,067.2 |
|
|
$ |
960.2 |
|
|
$ |
425.7 |
|
|
$ |
(86.7 |
) |
Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
73.7 |
|
Acquisition-related (credit)
costs (earn-outs) |
|
|
(21.4 |
) |
|
|
7.7 |
|
|
|
— |
|
|
|
— |
|
Impairment of cost-based
investments |
|
|
6.5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
(Gain) loss from
dispositions |
|
|
— |
|
|
|
— |
|
|
|
(449.5 |
) |
|
|
19.6 |
|
Severance expense |
|
|
— |
|
|
|
— |
|
|
|
1.8 |
|
|
|
— |
|
Litigation reserve |
|
|
19.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
|
|
1,071.5 |
|
|
|
967.9 |
|
|
|
(22.0 |
) |
|
|
6.6 |
|
Adjusted EBITDA from
acquisitions and dispositions |
|
|
(7.4 |
) |
|
|
(29.3 |
) |
|
|
22.0 |
|
|
|
(6.6 |
) |
Organic adjusted EBITDA |
|
$ |
1,064.1 |
|
|
$ |
938.6 |
|
|
$ |
— |
|
|
$ |
— |
|
Segment Adjusted EBITDA Margin
ReconciliationNote: Segment adjusted EBITDA margin is
calculated as a percentage of respective segment revenues.
|
|
Three Months Ended September 30, 2023 |
|
|
Three Months Ended September 30, 2022 |
|
|
|
Insurance |
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
EBITDA margin |
|
|
51.2 |
% |
|
|
53.6 |
% |
|
|
N/A |
|
|
|
N/A |
|
Acquisition-related costs
(earn-outs) |
|
|
— |
|
|
|
1.3 |
|
|
|
N/A |
|
|
|
N/A |
|
Impairment of cost-based
investments |
|
|
— |
|
|
|
— |
|
|
|
N/A |
|
|
|
N/A |
|
Litigation reserve |
|
|
2.8 |
|
|
|
— |
|
|
|
N/A |
|
|
|
N/A |
|
Adjusted EBITDA margin |
|
|
54.0 |
|
|
|
54.9 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
Nine Months Ended September 30, 2023 |
|
|
Nine Months Ended September 30, 2022 |
|
|
|
Insurance |
|
|
Insurance |
|
|
Energy and Specialized Markets |
|
|
Financial Services |
|
EBITDA margin |
|
|
53.3 |
% |
|
|
53.2 |
% |
|
|
N/A |
|
|
|
N/A |
|
Acquisition-related (credit)
costs (earn-outs) |
|
|
(1.1 |
) |
|
|
0.4 |
|
|
|
N/A |
|
|
|
N/A |
|
Impairment of cost-based
investments |
|
|
0.3 |
|
|
|
— |
|
|
|
N/A |
|
|
|
N/A |
|
Litigation reserve |
|
|
1.0 |
|
|
|
— |
|
|
|
N/A |
|
|
|
N/A |
|
Adjusted EBITDA margin |
|
|
53.5 |
|
|
|
53.6 |
|
|
|
N/A |
|
|
|
N/A |
|
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, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Operating expenses |
|
$ |
396.5 |
|
|
$ |
356.5 |
|
|
$ |
1,123.0 |
|
|
$ |
742.5 |
|
Depreciation and amortization
of fixed assets |
|
|
(48.1 |
) |
|
|
(41.5 |
) |
|
|
(139.2 |
) |
|
|
(121.1 |
) |
Amortization of intangible
assets |
|
|
(19.6 |
) |
|
|
(18.0 |
) |
|
|
(56.1 |
) |
|
|
(57.5 |
) |
Investment loss |
|
|
2.0 |
|
|
|
0.6 |
|
|
|
9.3 |
|
|
|
3.4 |
|
Acquisition-related (credit)
costs (earn-outs) |
|
|
— |
|
|
|
(7.7 |
) |
|
|
21.4 |
|
|
|
(7.7 |
) |
Impairment of cost-based
investments |
|
|
— |
|
|
|
— |
|
|
|
(6.5 |
) |
|
|
— |
|
Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(73.7 |
) |
(Loss) gain from
dispositions |
|
|
— |
|
|
|
(5.3 |
) |
|
|
— |
|
|
|
429.9 |
|
Severance expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.8 |
) |
Litigation reserve |
|
|
(19.2 |
) |
|
|
— |
|
|
|
(19.2 |
) |
|
|
— |
|
Adjusted EBITDA expenses |
|
$ |
311.6 |
|
|
$ |
284.6 |
|
|
$ |
932.7 |
|
|
$ |
914.0 |
|
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, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net income |
|
$ |
187.4 |
|
|
$ |
189.5 |
|
|
$ |
440.6 |
|
|
$ |
893.1 |
|
Income (loss) from
discontinued operations |
|
|
— |
|
|
|
23.7 |
|
|
|
(145.5 |
) |
|
|
66.7 |
|
Income from continuing
operations |
|
|
187.4 |
|
|
|
165.8 |
|
|
|
586.1 |
|
|
|
826.4 |
|
plus: Amortization of
intangibles |
|
|
19.6 |
|
|
|
18.0 |
|
|
|
56.1 |
|
|
|
57.5 |
|
less: Income tax effect on
amortization of intangibles |
|
|
(5.0 |
) |
|
|
(4.5 |
) |
|
|
(14.1 |
) |
|
|
(14.4 |
) |
plus: Acquisition-related
costs (credit) (earn-outs) |
|
|
— |
|
|
|
7.7 |
|
|
|
(21.4 |
) |
|
|
7.7 |
|
less: Income tax effect on
acquisition-related costs (credit) (earn-outs) |
|
|
— |
|
|
|
(1.9 |
) |
|
|
5.5 |
|
|
|
(1.9 |
) |
plus: Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
73.7 |
|
less: Income tax effect on
impairment loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(16.8 |
) |
plus: Loss (gain) from
dispositions |
|
|
— |
|
|
|
5.3 |
|
|
|
— |
|
|
|
(429.9 |
) |
less: Income tax effect on
(loss) gain from dispositions |
|
|
— |
|
|
|
(1.3 |
) |
|
|
— |
|
|
|
67.4 |
|
plus: Impairment of cost-based
investments |
|
|
— |
|
|
|
— |
|
|
|
6.5 |
|
|
|
— |
|
less: Income tax effect on
impairment of cost-based investments |
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
|
|
— |
|
plus: Severance expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.8 |
|
less: Income tax effect on
severance expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
plus: Litigation reserve |
|
|
19.2 |
|
|
|
— |
|
|
|
19.2 |
|
|
|
— |
|
less: Income tax effect on
litigation reserve |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted net income |
|
$ |
221.2 |
|
|
$ |
189.1 |
|
|
$ |
637.5 |
|
|
$ |
571.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS attributable to
Verisk |
|
$ |
1.29 |
|
|
$ |
1.05 |
|
|
$ |
3.96 |
|
|
$ |
5.18 |
|
Diluted adjusted EPS |
|
$ |
1.52 |
|
|
$ |
1.20 |
|
|
$ |
4.31 |
|
|
$ |
3.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average diluted
shares outstanding |
|
|
145.7 |
|
|
|
158.0 |
|
|
|
148.0 |
|
|
|
159.6 |
|
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, |
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
2022 |
|
|
Change |
|
Net cash provided by operating
activities |
|
$ |
250.1 |
|
|
$ |
280.2 |
|
|
|
(10.7 |
)% |
|
$ |
808.3 |
|
|
$ |
810.0 |
|
|
|
(0.2 |
)% |
Capital expenditures |
|
|
(54.3 |
) |
|
|
(65.8 |
) |
|
|
17.5 |
% |
|
|
(173.7 |
) |
|
|
(195.0 |
) |
|
|
10.9 |
% |
Free cash flow |
|
$ |
195.8 |
|
|
$ |
214.4 |
|
|
|
(8.7 |
)% |
|
$ |
634.6 |
|
|
$ |
615.0 |
|
|
|
3.2 |
% |
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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