Verisk (Nasdaq:VRSK), a leading global data analytics and
technology provider, today announced results for the fourth quarter
and fiscal year ended December 31, 2023.
Lee Shavel, president and CEO, Verisk: "Verisk's 2023
performance exceeded the expectations we set at Investor Day and
demonstrated our potential as an insurance-focused organization. We
achieved these results while implementing strategic,
organizational, and cultural change. As we look ahead, our improved
engagement with clients and ability to act on a more coordinated
basis has expanded opportunities to invest in new innovations and
technologies that deliver value to the industry and support
growth and returns for Verisk shareholders."
Elizabeth Mann, CFO, Verisk: "Verisk delivered solid fourth
quarter 2023 results marked by 6.0% OCC revenue growth, 6.5% OCC
adjusted EBITDA growth and continued margin expansion. This capped
off an excellent 2023 where revenue and adjusted EBITDA growth
exceeded our long-term targets. As we look to 2024, we have
confidence in our ability to achieve consistent and predictable
growth, margin expansion and strong free cash flow generation. We
will continue to allocate our free cash flow toward
investments in order to deliver on our growth strategy while
leaning into our cost discipline to achieve our efficiency
commitments."
Summary of Results (GAAP and Non-GAAP) from Continuing
Operations(in millions, except per share
amounts) Note: Adjusted EBITDA, diluted adjusted EPS, and free
cash flow are non-GAAP measures.
|
|
Three Months Ended December 31, |
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
2022 |
|
|
Change |
|
Revenues |
|
$ |
677.2 |
|
|
$ |
630.4 |
|
|
|
7.4 |
% |
|
$ |
2,681.4 |
|
|
$ |
2,497.0 |
|
|
|
7.4 |
% |
Income from continuing
operations |
|
|
182.3 |
|
|
|
215.8 |
|
|
|
(15.5 |
) |
|
|
768.4 |
|
|
|
1,042.1 |
|
|
|
(26.3 |
) |
Adjusted EBITDA |
|
|
362.0 |
|
|
|
332.0 |
|
|
|
9.0 |
|
|
|
1,433.5 |
|
|
|
1,284.5 |
|
|
|
11.6 |
|
Diluted EPS attributable to
Verisk |
|
|
1.25 |
|
|
|
1.37 |
|
|
|
(8.8 |
) |
|
|
5.22 |
|
|
|
6.55 |
|
|
|
(20.3 |
) |
Diluted adjusted EPS |
|
|
1.40 |
|
|
|
1.43 |
|
|
|
(2.1 |
) |
|
|
5.71 |
|
|
|
5.01 |
|
|
|
14.0 |
|
Net cash provided by operating
activities |
|
|
252.4 |
|
|
|
249.0 |
|
|
|
1.4 |
|
|
|
1,060.7 |
|
|
|
1,059.0 |
|
|
|
0.2 |
|
Free cash flow |
|
|
196.1 |
|
|
|
169.3 |
|
|
|
15.8 |
|
|
|
830.7 |
|
|
|
784.3 |
|
|
|
5.9 |
|
Revenues from Continuing Operations
Consolidated revenues were $677.2 million, up 7.4% and
up 6.0% on an OCC basis for the fourth quarter, reflecting
solid growth in underwriting and more moderate growth in
claims. Storm-related revenue (Hurricane Ian) of $5.6 million in
the fourth quarter of 2022 compared to almost no storm activity in
the current year's quarter, negatively impacted our OCC
revenue growth by approximately 90 basis points. For the full
year 2023, consolidated revenues were $2,681.4 million, up 7.4% and
up 8.7% on an OCC basis, reflecting broad-based growth across most
of our businesses.
Revenues and Revenue Growth by Segment(in
millions)Note: OCC revenue growth is a non-GAAP measure.
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
December 31, |
|
|
December 31, 2023 |
|
|
|
2023 |
|
|
2022 |
|
|
Reported |
|
|
OCC |
|
Underwriting |
|
$ |
479.0 |
|
|
$ |
444.4 |
|
|
|
7.8 |
% |
|
|
7.3 |
% |
Claims |
|
|
198.2 |
|
|
|
186.0 |
|
|
|
6.6 |
|
|
|
2.8 |
|
Insurance |
|
$ |
677.2 |
|
|
$ |
630.4 |
|
|
|
7.4 |
|
|
|
6.0 |
|
|
|
Twelve Months Ended |
|
|
Twelve Months Ended |
|
|
|
December 31, |
|
|
December 31, 2023 |
|
|
|
2023 |
|
|
2022 |
|
|
Reported |
|
|
OCC |
|
Underwriting |
|
$ |
1,892.7 |
|
|
$ |
1,734.5 |
|
|
|
9.1 |
% |
|
|
8.5 |
% |
Claims |
|
|
788.7 |
|
|
|
702.5 |
|
|
|
12.3 |
|
|
|
9.3 |
|
Insurance |
|
|
2,681.4 |
|
|
|
2,437.0 |
|
|
|
10.0 |
|
|
|
8.7 |
|
Specialized Markets |
|
|
- |
|
|
|
22.4 |
|
|
|
N/A |
|
|
|
N/A |
|
Financial Services |
|
|
- |
|
|
|
37.6 |
|
|
|
N/A |
|
|
|
N/A |
|
Revenues |
|
$ |
2,681.4 |
|
|
$ |
2,497.0 |
|
|
|
7.4 |
|
|
|
8.7 |
|
Insurance segment revenues grew 7.4% in the fourth quarter
of 2023 and 6.0% on an OCC basis. For the full year
2023, insurance segment revenues grew 10.0% and 8.7% on an OCC
basis.
- Underwriting revenues increased 7.8% in the quarter
and 7.3% on an OCC basis, primarily resulting from solid
growth across forms, rules, and loss costs, underwriting
data and analytic solutions, extreme event solutions, and life
insurance solutions.
- Claims revenue grew 6.6% in the quarter and 2.8% on
an OCC basis. The year-over-year increase in revenues was driven by
growth in anti-fraud, casualty, and international.
Storm-related revenue from the prior year negatively impacted OCC
revenue growth by 320 basis points.
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 the sale of Verisk Financial Services on
April 8, 2022.
Income and Adjusted EBITDA from Continuing
Operations
During fourth-quarter 2023, income from continuing operations
was $182.3 million, a decrease of 15.5%. The
decrease in income from continuing operations was primarily
due to a $19.0 million litigation reserve expense in the
fourth quarter of 2023 associated with an indemnification
for an ongoing inquiry related to our former Financial
Services segment, a one-time tax benefit of approximately $30.3
million in the fourth quarter of 2022, and higher depreciation
expense in the fourth quarter of 2023 associated with the timing of
certain large internally developed projects that were
completed and placed into service during the
year. Adjusted EBITDA increased 9.0%, and 6.5% on an OCC
basis, primarily due to strong revenue growth and cost
discipline. For 2023, income from continuing operations was
$768.4 million, down 26.3%, while adjusted EBITDA was $1,433.5
million, up 11.6%, and up 11.5% on an OCC basis, reflecting 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.
|
|
Three months ended December 31, |
|
|
|
EBITDA |
|
|
EBITDA Margin |
|
|
Adjusted EBITDA |
|
|
Adjusted EBITDA Growth |
|
|
Adjusted EBITDA Margin |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
2023 Reported |
|
|
2023 OCC |
|
|
2023 |
|
|
2022 |
|
Insurance |
|
$ |
356.9 |
|
|
$ |
342.8 |
|
|
|
52.7 |
% |
|
|
54.4 |
% |
|
$ |
362.0 |
|
|
$ |
332.1 |
|
|
|
9.0 |
% |
|
|
6.5 |
% |
|
|
53.4 |
% |
|
|
52.7 |
% |
Specialized Markets |
|
|
- |
|
|
|
0.5 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
- |
|
|
|
0.1 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
Financial Services |
|
|
- |
|
|
|
(2.6 |
) |
|
|
N/A |
|
|
|
N/A |
|
|
|
- |
|
|
|
(0.2 |
) |
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
Total |
|
$ |
356.9 |
|
|
$ |
340.7 |
|
|
|
52.7 |
|
|
|
54.0 |
|
|
$ |
362.0 |
|
|
$ |
332.0 |
|
|
|
9.0 |
|
|
|
6.5 |
|
|
|
53.4 |
|
|
|
52.7 |
|
|
|
Twelve months ended December 31, |
|
|
|
EBITDA |
|
|
EBITDA Margin |
|
|
Adjusted EBITDA |
|
|
Adjusted EBITDA Growth |
|
|
Adjusted EBITDA Margin |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
2023 Reported |
|
|
2023 OCC |
|
|
2023 |
|
|
2022 |
|
Insurance |
|
$ |
1,424.1 |
|
|
$ |
1,303.0 |
|
|
|
53.1 |
% |
|
|
53.5 |
% |
|
$ |
1,433.5 |
|
|
$ |
1,300.0 |
|
|
|
10.3 |
% |
|
|
11.5 |
% |
|
|
53.5 |
% |
|
|
53.3 |
% |
Specialized Markets |
|
|
- |
|
|
|
426.2 |
|
|
|
N/A |
|
|
|
1,900.8 |
|
|
|
- |
|
|
|
(21.9 |
) |
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
(97.9 |
) |
Financial Services |
|
|
- |
|
|
|
(89.4 |
) |
|
|
N/A |
|
|
|
(237.6 |
) |
|
|
- |
|
|
|
6.4 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
16.9 |
|
Total |
|
$ |
1,424.1 |
|
|
$ |
1,639.8 |
|
|
|
53.1 |
|
|
|
65.7 |
|
|
$ |
1,433.5 |
|
|
$ |
1,284.5 |
|
|
|
11.6 |
|
|
|
11.5 |
|
|
|
53.5 |
|
|
|
51.4 |
|
Earnings Per Share and Diluted Adjusted Earnings Per
Share
Diluted EPS attributable to Verisk decreased 8.8%
to $1.25 for the fourth quarter of 2023. Diluted adjusted EPS
decreased 2.1% to $1.40 for the fourth quarter
of 2023. The decrease in diluted EPS attributable to Verisk and
diluted adjusted EPS was the result of a lower tax
expense in the prior year resulting from a one-time tax benefit of
approximately $30.3 million, as well as higher year-over-year
depreciation expense in the fourth quarter of 2023 related
to the timing of certain large internally developed
software projects that were completed and placed into service
during the year. This was offset in part by strong
revenue and profit growth, lower net interest expense, and the
benefit from our accelerated share repurchase program. For the
full year 2023, diluted EPS attributable to Verisk were $5.22, down
20.3% and diluted adjusted EPS were $5.71, up 14.0%.
Cash Flow and Free Cash Flow
Net cash provided by operating activities
was $252.4 million for the fourth quarter of 2023, up
1.4%, and free cash flow was $196.1 million, up
15.8%. The increase in net cash provided by operating
activities reflects an increase in the operating profit of our
insurance segment and lower tax payments in the current year,
offset by the disposition of our Energy business. Cash taxes
paid in the prior year were higher primarily due to the gain on the
sale of 3E. For the full year 2023, net cash provided by operating
activities was $1,060.7 million, up 0.2%, and free cash flow was
$830.7 million, up 5.9%.
Dividend
On December 31, 2023, we paid a cash dividend of
34 cents per share of common stock issued and outstanding to
the holders of record as of December 15, 2023.
On February 14, 2024, our Board of Directors approved a
cash dividend of 39 cents per share of common
stock issued and outstanding, a 15% increase. The dividend is
payable on March 29, 2024, to holders of record as of March
15, 2024.
Share Repurchases
During the fourth quarter 2023, we entered into and fully funded
an accelerated share repurchase program (ASR) of $250 million and
received an initial delivery of 0.9 million shares. Upon the
final settlement of this ASR agreement in February 2024, we
received additional shares of 0.2 million as determined by the
daily volume weighted average share price of our common stock of
$237.71 during the term of this ASR agreement.
As of December 31, 2023, we had $641.5 million remaining
under our share repurchase authorization. On February 14, 2024,
our Board of Directors approved an additional $1.0 billion
share repurchase authorization.
Outlook
The Company has established its financial outlook for fiscal
2024 as follows:
|
|
Fiscal 2024 Guidance |
|
|
|
($ in millions, except per share amounts) |
|
|
|
Low |
|
|
High |
|
Revenue |
|
$ |
2,840 |
|
|
$ |
2,900 |
|
Adjusted EBITDA |
|
$ |
1,540 |
|
|
$ |
1,600 |
|
Adjusted EBITDA margin |
|
|
54.0 |
% |
|
|
55.0 |
% |
Diluted adjusted EPS |
|
$ |
6.30 |
|
|
$ |
6.60 |
|
|
|
|
|
|
|
|
|
|
Fixed asset depreciation &
amortization |
|
$ |
210 |
|
|
$ |
240 |
|
Intangible amortization |
|
$ |
75 |
|
|
$ |
75 |
|
Effective tax rate |
|
|
23.0 |
% |
|
|
25.0 |
% |
Capital expenditures |
|
$ |
240 |
|
|
$ |
260 |
|
Conference Call
Our management team will host a live audio webcast to discuss
the financial results and business highlights on Wednesday,
February 21, 2024, at 8:30 a.m. EST (5:30 a.m. PT, 1:30 p.m.
GMT). All interested parties are invited to listen to the live
event via webcast on our investor website
at http://investor.verisk.com. The discussion will also be
available through dial-in number 1-888-660-6191 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, political topics
and ESG 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. For more, visit Verisk.com.
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 RelationsStacey BrodbarHead of
Investor RelationsVerisk201-469-4327IR@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 from
continuing operations adjusted for (i) depreciation and
amortization of fixed assets; (ii) amortization of intangible
assets; (iii) interest expense; and (iv) provision for income
taxes. Adjusted EBITDA represents EBITDA adjusted for
acquisition-related costs (earn-outs), gain/loss from dispositions
(which includes businesses held for sale), and nonrecurring
gain/loss. Adjusted EBITDA expenses represent adjusted EBITDA net
of revenues. We believe these measures are useful and
meaningful because they help us allocate resources, make business
decisions, allow for greater transparency regarding our operating
performance, and facilitate period-to-period comparison.
Adjusted Net Income and Diluted Adjusted EPS:
Adjusted net income represents GAAP net income from continuing
operations 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.
Attached Financial Statements
Please refer to the full Form 10-K filing for the complete
financial statements and related notes.
VERISK ANALYTICS,
INC.CONSOLIDATED BALANCE SHEETSAs
of December 31, 2023 and 2022
|
|
2023 |
|
|
2022 |
|
|
|
(in millions, except for share and per share
data) |
|
ASSETS: |
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
302.7 |
|
|
$ |
112.5 |
|
Accounts receivable, net |
|
|
334.2 |
|
|
|
290.1 |
|
Prepaid expenses |
|
|
84.5 |
|
|
|
83.7 |
|
Income taxes receivable |
|
|
23.5 |
|
|
|
44.2 |
|
Other current assets |
|
|
65.2 |
|
|
|
32.0 |
|
Current assets held-for-sale |
|
|
- |
|
|
|
362.6 |
|
Total current assets |
|
|
810.1 |
|
|
|
925.1 |
|
Noncurrent assets: |
|
|
|
|
|
|
|
|
Fixed assets, net |
|
|
604.9 |
|
|
|
541.5 |
|
Operating lease right-of-use assets, net |
|
|
191.7 |
|
|
|
182.0 |
|
Intangible assets, net |
|
|
471.7 |
|
|
|
504.8 |
|
Goodwill |
|
|
1,760.8 |
|
|
|
1,676.0 |
|
Deferred income tax assets |
|
|
30.8 |
|
|
|
31.7 |
|
Other noncurrent assets |
|
|
496.1 |
|
|
|
371.4 |
|
Noncurrent assets held for sale |
|
|
- |
|
|
|
2,728.6 |
|
Total assets |
|
$ |
4,366.1 |
|
|
$ |
6,961.1 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY: |
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
340.8 |
|
|
$ |
292.8 |
|
Short-term debt and current portion of long-term debt |
|
|
14.5 |
|
|
|
1,392.9 |
|
Deferred revenues |
|
|
375.1 |
|
|
|
321.7 |
|
Operating lease liabilities |
|
|
33.1 |
|
|
|
29.5 |
|
Income taxes payable |
|
|
7.9 |
|
|
|
- |
|
Current liabilities held-for-sale |
|
|
- |
|
|
|
282.3 |
|
Total current liabilities |
|
|
771.4 |
|
|
|
2,319.2 |
|
Noncurrent liabilities: |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
2,852.2 |
|
|
|
2,343.2 |
|
Deferred income tax liabilities |
|
|
210.1 |
|
|
|
145.6 |
|
Operating lease liabilities |
|
|
195.6 |
|
|
|
189.9 |
|
Other noncurrent liabilities |
|
|
14.6 |
|
|
|
17.9 |
|
Noncurrent liabilities held-for-sale |
|
|
- |
|
|
|
177.6 |
|
Total liabilities |
|
|
4,043.9 |
|
|
|
5,193.4 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock, $.001 par value; 2,000,000,000 shares authorized;
544,003,038 shares issued; 143,308,729 and 154,701,136 shares
outstanding, respectively |
|
|
0.1 |
|
|
|
0.1 |
|
Additional paid-in capital |
|
|
2,872.3 |
|
|
|
2,720.8 |
|
Treasury stock, at cost, 400,694,309 and 389,301,902 shares,
respectively |
|
|
(9,037.5 |
) |
|
|
(6,239.5 |
) |
Retained earnings |
|
|
6,416.9 |
|
|
|
5,999.1 |
|
Accumulated other comprehensive income (losses) |
|
|
58.2 |
|
|
|
(731.2 |
) |
Total Verisk stockholders' equity |
|
|
310.0 |
|
|
|
1,749.3 |
|
Noncontrolling interests |
|
|
12.2 |
|
|
|
18.4 |
|
Total stockholders’ equity |
|
|
322.2 |
|
|
|
1,767.7 |
|
Total liabilities and stockholders’ equity |
|
$ |
4,366.1 |
|
|
$ |
6,961.1 |
|
VERISK ANALYTICS,
INC.CONSOLIDATED STATEMENTS OF
OPERATIONSFor the Three and Twelve Months Ended
December 31, 2023 and 2022
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(in millions, except for share and per share
data) |
|
Revenues |
|
$ |
677.2 |
|
|
$ |
630.4 |
|
|
$ |
2,681.4 |
|
|
$ |
2,497.0 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues (exclusive of items shown separately below) |
|
|
226.2 |
|
|
|
205.2 |
|
|
|
876.5 |
|
|
|
824.6 |
|
Selling, general and administrative |
|
|
114.4 |
|
|
|
80.7 |
|
|
|
391.8 |
|
|
|
381.5 |
|
Depreciation and amortization of fixed assets |
|
|
67.6 |
|
|
|
43.0 |
|
|
|
206.8 |
|
|
|
164.2 |
|
Amortization of intangible assets |
|
|
18.5 |
|
|
|
17.0 |
|
|
|
74.6 |
|
|
|
74.4 |
|
Other operating loss (income) |
|
|
- |
|
|
|
2.0 |
|
|
|
- |
|
|
|
(354.2 |
) |
Total operating expenses |
|
|
426.7 |
|
|
|
347.9 |
|
|
|
1,549.7 |
|
|
|
1,090.5 |
|
Operating income |
|
|
250.5 |
|
|
|
282.5 |
|
|
|
1,131.7 |
|
|
|
1,406.5 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income (loss) and others, net |
|
|
20.3 |
|
|
|
(1.8 |
) |
|
|
11.0 |
|
|
|
(5.3 |
) |
Interest expense, net |
|
|
(28.1 |
) |
|
|
(41.2 |
) |
|
|
(115.5 |
) |
|
|
(138.8 |
) |
Total other expense, net |
|
|
(7.8 |
) |
|
|
(43.0 |
) |
|
|
(104.5 |
) |
|
|
(144.1 |
) |
Income from continuing
operations before income taxes |
|
|
242.7 |
|
|
|
239.5 |
|
|
|
1,027.2 |
|
|
|
1,262.4 |
|
Provision for income
taxes |
|
|
(60.4 |
) |
|
|
(23.7 |
) |
|
|
(258.8 |
) |
|
|
(220.3 |
) |
Income from continuing operations |
|
|
182.3 |
|
|
|
215.8 |
|
|
|
768.4 |
|
|
|
1042.1 |
|
Loss from discontinued operations, net of tax benefit (expense) of
$(12.4), $139.9, $(12.6) and $131.5, respectively |
|
|
(8.5 |
) |
|
|
(154.6 |
) |
|
|
(154.0 |
) |
|
|
(87.8 |
) |
Net income |
|
|
173.8 |
|
|
|
61.2 |
|
|
|
614.4 |
|
|
|
954.3 |
|
Less: Net loss (income) attributable to noncontrolling
interests |
|
|
0.2 |
|
|
|
(0.1 |
) |
|
|
0.2 |
|
|
|
(0.4 |
) |
Net income attributable to Verisk |
|
$ |
174.0 |
|
|
$ |
61.1 |
|
|
$ |
614.6 |
|
|
$ |
953.9 |
|
Basic net income per share
attributable to Verisk: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
1.26 |
|
|
$ |
1.38 |
|
|
$ |
5.24 |
|
|
$ |
6.60 |
|
Loss from discontinued operations |
|
|
(0.06 |
) |
|
|
(0.99 |
) |
|
|
(1.05 |
) |
|
|
(0.56 |
) |
Basic net income per share attributable to Verisk: |
|
$ |
1.20 |
|
|
$ |
0.39 |
|
|
$ |
4.19 |
|
|
$ |
6.04 |
|
Diluted net income per share
attributable to Verisk: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
1.25 |
|
|
$ |
1.37 |
|
|
$ |
5.22 |
|
|
$ |
6.55 |
|
Loss from discontinued operations |
|
|
(0.06 |
) |
|
|
(0.98 |
) |
|
|
(1.05 |
) |
|
|
(0.55 |
) |
Diluted net income per share attributable to Verisk: |
|
$ |
1.20 |
|
|
$ |
0.39 |
|
|
$ |
4.17 |
|
|
$ |
6.00 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
144,618,187 |
|
|
|
156,028,555 |
|
|
|
146,623,989 |
|
|
|
157,905,718 |
|
Diluted |
|
|
145,392,678 |
|
|
|
156,974,983 |
|
|
|
147,336,159 |
|
|
|
158,928,942 |
|
VERISK ANALYTICS,
INC.CONSOLIDATED STATEMENTS OF CASH
FLOWSFor the Years Ended December 31,
2023 and 2022
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(in millions) |
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
173.8 |
|
|
$ |
61.2 |
|
|
$ |
614.4 |
|
|
$ |
954.3 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of fixed assets |
|
|
67.6 |
|
|
|
46.0 |
|
|
|
206.8 |
|
|
|
197.1 |
|
Amortization of intangible assets |
|
|
18.5 |
|
|
|
21.9 |
|
|
|
74.6 |
|
|
|
142.9 |
|
Amortization of debt issuance costs and original issue discount,
net of original issue premium |
|
|
0.5 |
|
|
|
0.2 |
|
|
|
1.5 |
|
|
|
1.1 |
|
Provision for doubtful accounts |
|
|
(0.2 |
) |
|
|
2.6 |
|
|
|
8.7 |
|
|
|
7.0 |
|
(Gain) loss on sale of assets |
|
|
(4.2 |
) |
|
|
33.5 |
|
|
|
131.1 |
|
|
|
(393.9 |
) |
Impairment of cost-based investments |
|
|
- |
|
|
|
- |
|
|
|
6.5 |
|
|
|
— |
|
Stock-based compensation expense |
|
|
7.7 |
|
|
|
6.3 |
|
|
|
54.0 |
|
|
|
56.5 |
|
Impairment of long-lived assets |
|
|
- |
|
|
|
303.7 |
|
|
|
— |
|
|
|
377.4 |
|
Deferred income taxes |
|
|
78.6 |
|
|
|
(199.7 |
) |
|
|
52.7 |
|
|
|
(261.0 |
) |
Loss on disposal of fixed assets, net |
|
|
1.5 |
|
|
|
0.3 |
|
|
|
3.8 |
|
|
|
1.1 |
|
Acquisition related liability adjustment |
|
|
2.0 |
|
|
|
- |
|
|
|
(20.0 |
) |
|
|
— |
|
Changes in assets and liabilities, net of effects from
acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
21.3 |
|
|
|
24.6 |
|
|
|
(83.0 |
) |
|
|
(57.7 |
) |
Prepaid expenses and other assets |
|
|
(20.1 |
) |
|
|
3.1 |
|
|
|
(56.9 |
) |
|
|
(8.4 |
) |
Operating lease right-of-use assets, net |
|
|
5.4 |
|
|
|
11.3 |
|
|
|
26.8 |
|
|
|
46.6 |
|
Income taxes |
|
|
(69.3 |
) |
|
|
23.3 |
|
|
|
(55.8 |
) |
|
|
25.6 |
|
Accounts payable and accrued liabilities |
|
|
9.1 |
|
|
|
6.0 |
|
|
|
46.5 |
|
|
|
(21.2 |
) |
Deferred revenues |
|
|
(49.9 |
) |
|
|
(69.8 |
) |
|
|
81.2 |
|
|
|
64.5 |
|
Operating lease liabilities |
|
|
(5.9 |
) |
|
|
(5.7 |
) |
|
|
(27.1 |
) |
|
|
(43.9 |
) |
Other liabilities |
|
|
16.0 |
|
|
|
(19.8 |
) |
|
|
(5.1 |
) |
|
|
(29.0 |
) |
Net cash provided by operating activities |
|
|
252.4 |
|
|
|
249.0 |
|
|
|
1,060.7 |
|
|
|
1,059.0 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions and purchase of controlling interest, net of cash
acquired of $0.0 and $3.6; and $8.0 and $9.3, respectively |
|
|
- |
|
|
|
- |
|
|
|
(83.3 |
) |
|
|
(448.9 |
) |
Proceeds from sale of businesses |
|
|
- |
|
|
|
- |
|
|
|
3,066.4 |
|
|
|
1,073.3 |
|
Investments in nonpublic companies |
|
|
(0.5 |
) |
|
|
(2.1 |
) |
|
|
(2.2 |
) |
|
|
(46.0 |
) |
Escrow funding associated with acquisitions |
|
|
- |
|
|
|
- |
|
|
|
(3.8 |
) |
|
|
(2.3 |
) |
Capital expenditures |
|
|
(56.3 |
) |
|
|
(79.7 |
) |
|
|
(230.0 |
) |
|
|
(274.7 |
) |
Other investing activities, net |
|
|
(0.2 |
) |
|
|
- |
|
|
|
(0.6 |
) |
|
|
— |
|
Net cash (used in) provided by investing activities |
|
|
(57.0 |
) |
|
|
(81.8 |
) |
|
|
2,746.5 |
|
|
|
301.4 |
|
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(in millions) |
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from (repayment of) short-term debt, net |
|
|
— |
|
|
|
50.0 |
|
|
|
(1,265.0 |
) |
|
|
380.0 |
|
Repayments of current portion of long-term debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(350.0 |
) |
Proceeds from issuance of long-term debt, inclusive of original
issue premium and net of original issue discount |
|
|
— |
|
|
|
— |
|
|
|
495.2 |
|
|
|
— |
|
Proceeds from issuance of short-term debt with original maturities
less than three months |
|
|
— |
|
|
|
275.0 |
|
|
|
— |
|
|
|
400.0 |
|
Repayment of short-term debt with original maturities greater than
three months |
|
|
— |
|
|
|
— |
|
|
|
(125.0 |
) |
|
|
— |
|
Payment of debt issuance costs |
|
|
— |
|
|
|
— |
|
|
|
(6.0 |
) |
|
|
|
|
Repurchases of common stock |
|
|
(712.5 |
) |
|
|
(466.2 |
) |
|
|
(2,762.3 |
) |
|
|
(1,662.5 |
) |
Net share settlement of taxes from restricted stock and performance
share awards |
|
|
(1.3 |
) |
|
|
(0.3 |
) |
|
|
(15.3 |
) |
|
|
(20.7 |
) |
Proceeds from stock options exercised |
|
|
7.6 |
|
|
|
20.9 |
|
|
|
141.9 |
|
|
|
132.5 |
|
Treasury stock shares repurchased not yet settled |
|
|
462.5 |
|
|
|
— |
|
|
|
(37.5 |
) |
|
|
— |
|
Dividends paid |
|
|
(48.9 |
) |
|
|
(48.0 |
) |
|
|
(196.8 |
) |
|
|
(195.2 |
) |
Other financing activities, net |
|
|
(2.5 |
) |
|
|
(0.8 |
) |
|
|
(15.7 |
) |
|
|
(14.3 |
) |
Net cash used in financing activities |
|
|
(295.1 |
) |
|
|
(169.4 |
) |
|
|
(3,786.5 |
) |
|
|
(1,330.2 |
) |
Effect of exchange rate changes |
|
|
(14.4 |
) |
|
|
18.1 |
|
|
|
(10.7 |
) |
|
|
(17.8 |
) |
(Decrease) increase in cash and cash equivalents |
|
|
(114.1 |
) |
|
|
15.9 |
|
|
|
10.0 |
|
|
|
12.4 |
|
Cash and cash equivalents, beginning of period |
|
|
416.8 |
|
|
|
276.8 |
|
|
|
292.7 |
|
|
|
280.3 |
|
Cash and cash equivalents, end of period |
|
$ |
302.7 |
|
|
$ |
292.7 |
|
|
$ |
302.7 |
|
|
$ |
292.7 |
|
Supplemental disclosures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes paid |
|
$ |
65.1 |
|
|
$ |
60.1 |
|
|
$ |
276.0 |
|
|
$ |
324.5 |
|
Interest paid |
|
$ |
50.3 |
|
|
$ |
60.0 |
|
|
$ |
111.2 |
|
|
$ |
134.3 |
|
Noncash investing and
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liability established on date of acquisitions |
|
$ |
(0.2 |
) |
|
$ |
(2.5 |
) |
|
$ |
8.7 |
|
|
$ |
14.0 |
|
Net assets sold as part of the dispositions, net of cash sold |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,211.8 |
|
|
$ |
— |
|
Finance lease additions, net of disposals |
|
$ |
1.9 |
|
|
$ |
0.3 |
|
|
$ |
45.6 |
|
|
$ |
5.2 |
|
Operating lease additions, net of terminations |
|
$ |
4.9 |
|
|
$ |
5.8 |
|
|
$ |
34.3 |
|
|
$ |
21.7 |
|
Fixed assets included in accounts payable and accrued
liabilities |
|
$ |
2.1 |
|
|
$ |
0.2 |
|
|
$ |
2.2 |
|
|
$ |
0.2 |
|
Non-GAAP ReconciliationsConsolidated
EBITDA, Adjusted EBITDA, and Organic Adjusted
EBITDA Reconciliation from Continuing Operations(in
millions)Note: EBITDA, adjusted EBITDA, and organic adjusted EBITDA
are non-GAAP measures. Margin is calculated as a percentage of
consolidated revenues.
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
Total |
|
|
Margin |
|
|
Total |
|
|
Margin |
|
|
Total |
|
|
Margin |
|
|
Total |
|
|
Margin |
|
Net income |
|
$ |
173.8 |
|
|
|
25.7 |
% |
|
$ |
61.2 |
|
|
|
9.7 |
% |
|
$ |
614.4 |
|
|
|
22.9 |
% |
|
$ |
954.3 |
|
|
|
38.2 |
% |
Less: Loss from discontinued
operations, net of tax |
|
|
(8.5 |
) |
|
|
(1.2 |
) |
|
|
(154.6 |
) |
|
|
(24.5 |
) |
|
|
(154.0 |
) |
|
|
(5.7 |
) |
|
|
(87.8 |
) |
|
|
(3.5 |
) |
Income from continuing operations |
|
|
182.3 |
|
|
|
26.9 |
% |
|
|
215.8 |
|
|
|
34.2 |
% |
|
|
768.4 |
|
|
|
28.6 |
% |
|
|
1,042.1 |
|
|
|
41.7 |
% |
Depreciation and amortization
of fixed assets |
|
|
67.6 |
|
|
|
10.0 |
|
|
|
43.0 |
|
|
|
6.8 |
|
|
|
206.8 |
|
|
|
7.7 |
|
|
|
164.2 |
|
|
|
6.6 |
|
Amortization of intangible
assets |
|
|
18.5 |
|
|
|
2.7 |
|
|
|
17.0 |
|
|
|
2.7 |
|
|
|
74.6 |
|
|
|
2.8 |
|
|
|
74.4 |
|
|
|
3.0 |
|
Interest expense |
|
|
28.1 |
|
|
|
4.2 |
|
|
|
41.2 |
|
|
|
6.5 |
|
|
|
115.5 |
|
|
|
4.3 |
|
|
|
138.8 |
|
|
|
5.6 |
|
Provision for income
taxes |
|
|
60.4 |
|
|
|
8.9 |
|
|
|
23.7 |
|
|
|
3.8 |
|
|
|
258.8 |
|
|
|
9.7 |
|
|
|
220.3 |
|
|
|
8.8 |
|
EBITDA |
|
|
356.9 |
|
|
|
52.7 |
|
|
|
340.7 |
|
|
|
54.0 |
|
|
|
1,424.1 |
|
|
|
53.1 |
|
|
|
1,639.8 |
|
|
|
65.7 |
|
Impairment loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
73.7 |
|
|
|
3.0 |
|
Impairment of cost-based
investments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6.5 |
|
|
|
0.2 |
|
|
|
- |
|
|
|
- |
|
Litigation reserve |
|
|
19.0 |
|
|
|
2.8 |
|
|
|
- |
|
|
|
- |
|
|
|
38.2 |
|
|
|
1.5 |
|
|
|
- |
|
|
|
- |
|
Acquisition-related
adjustments (earn-outs) |
|
|
2.0 |
|
|
|
0.3 |
|
|
|
(10.7 |
) |
|
|
(1.6 |
) |
|
|
(19.4 |
) |
|
|
(0.7 |
) |
|
|
(2.9 |
) |
|
|
(0.2 |
) |
Severance expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1.8 |
|
|
|
0.1 |
|
(Gain) loss directly related
to dispositions from continuing operations |
|
|
(15.9 |
) |
|
|
(2.4 |
) |
|
|
2.0 |
|
|
|
0.3 |
|
|
|
(15.9 |
) |
|
|
(0.6 |
) |
|
|
(427.9 |
) |
|
|
(17.2 |
) |
Adjusted EBITDA |
|
|
362.0 |
|
|
|
53.4 |
|
|
|
332.0 |
|
|
|
52.7 |
|
|
|
1,433.5 |
|
|
|
53.5 |
|
|
|
1,284.5 |
|
|
|
51.4 |
|
Adjusted EBITDA from
acquisitions and dispositions |
|
|
(0.7 |
) |
|
|
|
|
|
|
0.8 |
|
|
|
|
|
|
|
(8.1 |
) |
|
|
|
|
|
|
(13.2 |
) |
|
|
|
|
Organic adjusted EBITDA |
|
$ |
361.3 |
|
|
|
53.9 |
% |
|
$ |
332.8 |
|
|
|
52.8 |
% |
|
$ |
1,425.4 |
|
|
|
54.0 |
% |
|
$ |
1,271.3 |
|
|
|
52.4 |
% |
Segment Results Summary and Adjusted EBITDA
Reconciliation from Continuing Operations(in
millions)Note: Organic revenues, EBITDA, adjusted EBITDA, and
organic adjusted EBITDA are non-GAAP measures.
|
|
Three Months Ended December 31, 2023 |
|
|
Three Months Ended December 31, 2022 |
|
|
|
Insurance |
|
|
Insurance |
|
|
Specialized Markets |
|
|
Financial Services |
|
Revenues |
|
$ |
677.2 |
|
|
$ |
630.4 |
|
|
$ |
- |
|
|
$ |
- |
|
Revenues from acquisitions and
dispositions |
|
|
(6.9 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Organic revenues |
|
$ |
670.3 |
|
|
$ |
630.4 |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
356.9 |
|
|
$ |
342.8 |
|
|
$ |
0.5 |
|
|
$ |
(2.6 |
) |
Litigation reserve |
|
19.0 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
(Gain) loss directly related
to dispositions from continuing operations |
|
|
(15.9 |
) |
|
|
- |
|
|
|
(0.4 |
) |
|
|
2.4 |
|
Acquisition-related
adjustments (earn-outs) |
|
|
2.0 |
|
|
|
(10.7 |
) |
|
|
- |
|
|
|
- |
|
Adjusted EBITDA |
|
|
362.0 |
|
|
|
332.1 |
|
|
|
0.1 |
|
|
|
(0.2 |
) |
Adjusted EBITDA from
acquisitions and dispositions |
|
|
(0.7 |
) |
|
|
0.7 |
|
|
|
(0.1 |
) |
|
|
0.2 |
|
Organic adjusted EBITDA |
|
$ |
361.3 |
|
|
$ |
332.8 |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
Twelve Months Ended December 31, 2023 |
|
|
Twelve Months Ended December 31, 2022 |
|
|
|
Insurance |
|
|
Insurance |
|
|
Specialized Markets |
|
|
Financial Services |
|
Revenues |
|
$ |
2,681.4 |
|
|
$ |
2,437.0 |
|
|
$ |
22.4 |
|
|
$ |
37.6 |
|
Revenues from acquisitions and
dispositions |
|
|
(42.9 |
) |
|
|
(10.5 |
) |
|
|
(22.4 |
) |
|
|
(37.6 |
) |
Organic revenues |
|
$ |
2,638.5 |
|
|
$ |
2,426.5 |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
1,424.1 |
|
|
$ |
1,303.0 |
|
|
$ |
426.2 |
|
|
$ |
(89.4 |
) |
Impairment loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
73.7 |
|
Impairment of cost-based
investments |
|
|
6.5 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Litigation reserve |
|
|
38.2 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Acquisition-related
adjustments (earn-outs) |
|
|
(19.4 |
) |
|
|
(3.0 |
) |
|
|
- |
|
|
|
- |
|
Severance expense |
|
|
- |
|
|
|
- |
|
|
|
1.8 |
|
|
|
- |
|
(Gain) loss directly related
to dispositions from continuing operations |
|
|
(15.9 |
) |
|
|
- |
|
|
|
(449.9 |
) |
|
|
22.1 |
|
Adjusted EBITDA |
|
|
1,433.5 |
|
|
|
1,300.0 |
|
|
|
(21.9 |
) |
|
|
6.4 |
|
Adjusted EBITDA from
acquisitions and dispositions |
|
|
(8.1 |
) |
|
|
(28.7 |
) |
|
|
21.9 |
|
|
|
(6.4 |
) |
Organic adjusted EBITDA |
|
$ |
1,425.4 |
|
|
$ |
1,271.3 |
|
|
$ |
- |
|
|
$ |
- |
|
Segment Adjusted EBITDA Margin
ReconciliationNote: Segment adjusted EBITDA margin is
calculated as a percentage of respective segment revenues.
|
|
Three Months Ended December 31, 2023 |
|
|
Three Months Ended December 31, 2022 |
|
|
|
Insurance |
|
|
Insurance |
|
|
Specialized Markets |
|
|
Financial Services |
|
EBITDA margin |
|
|
52.7 |
% |
|
|
54.4 |
% |
|
|
— |
% |
|
|
— |
% |
Gain directly related to
dispositions from continuing operations |
|
|
(2.4 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Litigation reserve |
|
|
2.8 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Acquisition-related
adjustments (earn-outs) |
|
|
0.3 |
|
|
|
(1.7 |
) |
|
|
— |
|
|
|
— |
|
Adjusted EBITDA margin |
|
|
53.4 |
|
|
|
52.7 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
Twelve Months Ended December 31, 2023 |
|
|
Twelve Months Ended December 31, 2022 |
|
|
|
Insurance |
|
|
Insurance |
|
|
Specialized Markets |
|
|
Financial Services |
|
EBITDA margin |
|
|
53.1 |
% |
|
|
53.5 |
% |
|
|
1900.8 |
% |
|
|
(237.6 |
)% |
(Gain) loss directly related
to dispositions from continuing operations |
|
|
(0.6 |
) |
|
|
— |
|
|
|
(2,006.7 |
) |
|
|
58.4 |
|
Impairment of cost-based
investments |
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Litigation reserve |
|
|
1.5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Acquisition-related
adjustments (earn-outs) |
|
|
(0.7 |
) |
|
|
(0.2 |
) |
|
|
— |
|
|
|
— |
|
Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
196.1 |
|
Severance expense |
|
|
— |
|
|
|
— |
|
|
|
8.0 |
|
|
|
— |
|
Adjusted EBITDA margin |
|
|
53.5 |
|
|
|
53.3 |
|
|
|
(97.9 |
) |
|
|
16.9 |
|
Consolidated Adjusted EBITDA Expense Reconciliation from
Continuing Operations(in millions)Note: Adjusted EBITDA
expense is a non-GAAP measure.
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Operating expenses |
|
$ |
426.7 |
|
|
$ |
347.9 |
|
|
$ |
1,549.7 |
|
|
$ |
1,090.5 |
|
Depreciation and amortization
of fixed assets |
|
|
(67.6 |
) |
|
|
(43.0 |
) |
|
|
(206.8 |
) |
|
|
(164.2 |
) |
Amortization of intangible
assets |
|
|
(18.5 |
) |
|
|
(17.0 |
) |
|
|
(74.6 |
) |
|
|
(74.4 |
) |
Investment (income) loss and
others, net |
|
|
(20.3 |
) |
|
|
1.8 |
|
|
|
(11.0 |
) |
|
|
5.3 |
|
Litigation reserve |
|
|
(19.0 |
) |
|
|
- |
|
|
|
(38.2 |
) |
|
|
- |
|
Acquisition-related
adjustments (earn-outs) |
|
|
(2.0 |
) |
|
|
10.7 |
|
|
|
19.4 |
|
|
|
2.9 |
|
Impairment loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(73.7 |
) |
Impairment of cost-based
investments |
|
|
- |
|
|
|
- |
|
|
|
(6.5 |
) |
|
|
- |
|
Severance expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1.8 |
) |
Gain (loss) directly related to dispositions from continuing
operations |
|
|
15.9 |
|
|
|
(2.0 |
) |
|
|
15.9 |
|
|
|
427.9 |
|
Adjusted EBITDA expense |
|
$ |
315.2 |
|
|
$ |
298.4 |
|
|
$ |
1,247.9 |
|
|
$ |
1,212.5 |
|
Diluted Adjusted EPS Reconciliation from Continuing
Operations(in millions, except per share amounts)Note:
Diluted adjusted EPS is a non-GAAP measure.
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net income |
|
$ |
173.8 |
|
|
$ |
61.2 |
|
|
$ |
614.4 |
|
|
$ |
954.3 |
|
less: Loss from discontinued
operations |
|
|
(8.5 |
) |
|
|
(154.6 |
) |
|
|
(154.0 |
) |
|
|
(87.8 |
) |
Income from continuing
operations |
|
|
182.3 |
|
|
|
215.8 |
|
|
|
768.4 |
|
|
|
1,042.1 |
|
plus: Amortization of
intangibles |
|
|
18.5 |
|
|
|
17.0 |
|
|
|
74.6 |
|
|
|
74.4 |
|
less: Income tax effect on
amortization of intangibles |
|
|
(4.7 |
) |
|
|
(4.2 |
) |
|
|
(18.7 |
) |
|
|
(18.6 |
) |
plus: Litigation reserve |
|
|
19.0 |
|
|
|
- |
|
|
|
38.2 |
|
|
|
- |
|
less: Income tax effect on
litigation reserve |
|
|
(0.5 |
) |
|
|
- |
|
|
|
(0.5 |
) |
|
|
- |
|
plus: Impairment of cost-based
investments |
|
|
- |
|
|
|
- |
|
|
|
6.5 |
|
|
|
- |
|
less: Income tax effect on
impairment of cost-based investments |
|
|
- |
|
|
|
- |
|
|
|
(0.4 |
) |
|
|
- |
|
plus: Acquisition-related
adjustments (earn-outs) |
|
|
2.0 |
|
|
|
(7.7 |
) |
|
|
(19.4 |
) |
|
|
(0.1 |
) |
less: Income tax effect on
acquisition-related adjustments (earn-outs) |
|
|
(0.5 |
) |
|
|
1.9 |
|
|
|
4.9 |
|
|
|
0.1 |
|
plus: Impairment loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
73.7 |
|
less: Income tax effect on
impairment loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(16.8 |
) |
plus: Severance expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1.8 |
|
less: Income tax effect on
severance expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.4 |
) |
less: (Gain) loss directly
related to dispositions from continuing operations |
|
|
(15.9 |
) |
|
|
2.0 |
|
|
|
(15.9 |
) |
|
|
(427.9 |
) |
plus: Income tax on effect on
gain directly related to dispositions from continuing
operations |
|
|
3.7 |
|
|
|
- |
|
|
|
3.7 |
|
|
|
67.4 |
|
Adjusted net income |
|
$ |
203.9 |
|
|
$ |
224.8 |
|
|
$ |
841.4 |
|
|
$ |
795.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS attributable to
Verisk |
|
$ |
1.25 |
|
|
$ |
1.37 |
|
|
$ |
5.22 |
|
|
$ |
6.55 |
|
Diluted adjusted EPS |
|
$ |
1.40 |
|
|
$ |
1.43 |
|
|
$ |
5.71 |
|
|
$ |
5.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average diluted
shares outstanding |
|
|
145.4 |
|
|
|
157.0 |
|
|
|
147.3 |
|
|
|
158.9 |
|
Free Cash Flow Reconciliation from Continuing
Operations(in millions)Note: Free cash flow is a non-GAAP
measure.
|
|
Three Months Ended |
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
|
|
|
December 31, |
|
|
|
|
|
|
December 31, |
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
2022 |
|
|
Change |
|
Net cash provided by operating
activities |
|
$ |
252.4 |
|
|
$ |
249.0 |
|
|
|
1.4 |
% |
|
$ |
1,060.7 |
|
|
$ |
1,059.0 |
|
|
|
0.2 |
% |
Capital expenditures |
|
|
(56.3 |
) |
|
|
(79.7 |
) |
|
|
(29.4 |
) |
|
|
(230.0 |
) |
|
|
(274.7 |
) |
|
|
(16.3 |
) |
Free cash flow |
|
$ |
196.1 |
|
|
$ |
169.3 |
|
|
|
15.8 |
|
|
$ |
830.7 |
|
|
$ |
784.3 |
|
|
|
5.9 |
|
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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