Book Online or Call 1-855-SAUSALITO

Sign In  |  Register  |  About Sausalito  |  Contact Us

Sausalito, CA
September 01, 2020 1:41pm
7-Day Forecast | Traffic
  • Search Hotels in Sausalito

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Verisk Reports Third-Quarter 2022 Financial Results

  • Consolidated revenues were $745.3 million, down 1.8%, and up 4.8% on an organic constant currency (OCC) basis for the third quarter of 2022. The decline in our consolidated revenue was primarily due to the sale of our environmental health and safety business (3E) and Verisk Financial Services segment.
  • Net income attributable to Verisk was $189.4 million, down 6.1% for the third quarter of 2022. Adjusted EBITDA, a non-GAAP measure, was $383.5 million, up 1.2%, and up 6.0% on an OCC basis.
  • Diluted GAAP earnings per share (diluted EPS) attributable to Verisk were $1.20 for the third quarter of 2022, down 3.2%. Diluted adjusted earnings per share (diluted adjusted EPS), a non-GAAP measure, were $1.46, up 1.4%. 
  • Consolidated and OCC Revenue and Adjusted EBITDA growth were negatively impacted by the suspension of all commercial operations in Russia.
  • Net cash provided by operating activities was $280.2 million, down 1.8% and free cash flow, a non-GAAP measure, was $214.4 million, down 4.2% for the third quarter of 2022. 
  • We paid a cash dividend of 31 cents per share on September 30, 2022. Our Board of Directors approved a cash dividend of 31 cents per share payable on December 30, 2022.
  • We repurchased $300.0 million of our shares during the third quarter of 2022.
  • We signed a definitive agreement to sell our Energy business, Wood Mackenzie, to Veritas Capital for $3.1 billion in cash consideration payable at closing plus future additional contingent consideration of up to $200 million. 

JERSEY CITY, N.J., Nov. 01, 2022 (GLOBE NEWSWIRE) -- Verisk (Nasdaq: VRSK), a leading global data analytics provider, today announced results for the third quarter ended September 30, 2022.

Lee Shavel, CEO, said, "Verisk reported solid operating results in the quarter while also delivering on our stated intention to become a global insurance-focused data, analytics, and technology company and to improve operating efficiency. As we move forward, I am confident that with our proprietary data sets, talented and dedicated people, deep industry knowledge, and technical expertise, Verisk is best positioned to create value for our customers by helping them evolve in a new digital environment, integrate rapidly growing data sets, and achieve new levels of efficiency.

Elizabeth Mann, CFO, said, "In the third quarter of 2022, Verisk delivered OCC revenue growth of 4.8% and OCC adjusted EBITDA growth of 6.0%, demonstrating strong operational leverage and executing against our commitment to deliver margin expansion. I am excited to be at Verisk during such a transformative time and am energized by the opportunity to build upon Verisk's strong financial and competitive positioning to drive long-term value for our shareholders.

Summary of Results (GAAP and Non-GAAP)
(in millions, except per share amounts)
Note: Adjusted EBITDA, diluted adjusted EPS, and free cash flow are non-GAAP measures.

  Three Months Ended      Nine Months Ended     
  September 30,      September 30,     
  2022  2021  Change  2022  2021  Change 
Revenues $745.3  $759.0   (1.8)% $2,267.1  $2,232.6   1.5%
Net income attributable to Verisk  189.4   201.7   (6.1)  892.8   524.3   70.3 
Adjusted EBITDA  383.5   378.8   1.2   1,123.6   1,095.1   2.6 
Diluted EPS attributable to Verisk  1.20   1.24   (3.2)  5.59   3.21   74.1 
Diluted adjusted EPS  1.46   1.44   1.4   4.33   3.85   12.5 
Net cash provided by operating activities  280.2   285.2   (1.8)  810.0   967.1   (16.2)
Free cash flow  214.4   223.8   (4.2)  615.0   784.0   (21.6)

Revenues

Consolidated revenues decreased 1.8% and increased 4.8% on an OCC basis for the third quarter of 2022. The decline in our consolidated revenue was primarily due to the sale of our environmental health and safety business (3E) and Verisk Financial Services, partially offset by acquisitions. In addition, the suspension of all commercial operations in Russia negatively impacted revenue by $3.3 million in the third quarter of 2022. Normalizing for this, OCC revenue would have grown 5.3%.

Revenues and Revenue Growth by Segment
(in millions)
Note: OCC revenue growth is a non-GAAP measure.

          Revenue Growth 
  Three Months Ended  Three Months Ended 
  September 30,  September 30, 2022 
  2022  2021  Reported  OCC 
Underwriting & rating $436.2  $390.5   11.7%  6.5%
Claims  173.9   167.4   3.9   2.4 
Insurance  610.1   557.9   9.4   5.3 
Energy and Specialized Markets  135.2   165.9   (18.5)  2.5 
Financial Services     35.2   (100.0)  - 
Revenues $745.3  $759.0   (1.8)  4.8 


          Revenue Growth 
  Nine Months Ended  Nine Months Ended 
  September 30,  September 30, 2022 
  2022  2021  Reported  OCC 
Underwriting & rating $1,290.0  $1,156.0   11.6%  6.7%
Claims  516.5   487.5   5.9   4.1 
Insurance  1,806.5   1,643.5   9.9   5.9 
Energy and Specialized Markets  423.0   484.4   (12.7)  1.8 
Financial Services  37.6   104.7   (64.1)  - 
Revenues $2,267.1  $2,232.6   1.5   5.1 

Insurance segment revenues grew 9.4% in the third quarter and 5.3% on an OCC basis.

  • Underwriting and rating revenues increased 11.7% in the quarter and 6.5% on an OCC basis, resulting primarily from annual increases in price derived from continued enhancements to the content of the solutions within our industry-standard insurance programs, as well as selling expanded solutions to existing customers in commercial and personal lines. In addition, extreme events solutions and life solutions contributed to the growth. 
  • Claims revenues grew 3.9% in the quarter and 2.4% on an OCC basis, resulting primarily from growth in our claims analytics solutions and modest growth in our repair cost estimation solutions, offset by a tough comparison to a more active storm season in the prior year.

Energy and Specialized Markets segment revenue decreased 18.5% in the quarter and increased 2.5% on an OCC basis. The decline in revenue was primarily due to the sale of the 3E business that closed on March 11, 2022 and the suspension of commercial operations in Russia. OCC growth was driven by growth in research revenue, offset in part by a decline in consulting revenue. Normalizing for the impact of suspended operations in Russia, Energy revenue would have grown 5.2% on an OCC basis.

There was no Financial Services segment revenue in the quarter as we closed the sale of Verisk Financial Services on April 8, 2022.

Net Income Attributable to Verisk and Adjusted EBITDA

During third-quarter 2022, net income attributable to Verisk decreased 6.1%. The decrease was primarily driven by lower revenues as a result of dispositions, a loss incurred as part of true up of the normal closing adjustments related to the dispositions of 3E and Verisk Financial Services, and higher interest expense. Adjusted EBITDA increased 1.2%, and 6.0% on an OCC basis. During the quarter, we incurred incremental expense of $0.2 million related to the suspension of all commercial operations in Russia. Adjusted for this impact, OCC adjusted EBITDA growth was 7.0%.

EBITDA and Adjusted EBITDA by Segment
(in millions)
Note: Adjusted EBITDA is a non-GAAP measure. Margin is calculated as a percentage of revenues. See "Non-GAAP Reconciliations" below for a reconciliation to the nearest GAAP measure. All OCC figures exclude results from recent dispositions namely, 3E and Verisk Financial Services. Segment-level adjusted EBITDA margins for 2022 reflect a higher level of corporate allocations resulting from recent dispositions and the impact of foreign currency fluctuations.

  Three Months Ended September 30, 
  EBITDA  EBITDA Margin  Adjusted EBITDA  Adjusted EBITDA Growth  Adjusted EBITDA Margin 
                          2022  2022         
  2022  2021  2022  2021  2022  2021  Reported  OCC  2022  2021 
Insurance $329.3  $311.5   54.0%  55.8% $337.0  $311.6   8.2%  6.9%  55.2%  55.9%
Energy and Specialized Markets  40.1   60.5   29.6   36.5   46.5   60.5   (23.1)  (0.2)  34.4   36.5 
Financial Services  (1.4)  6.7   -   19.0   0.0   6.7   (100.0)  -   0.0   19 
Consolidated $368.0  $378.7   49.4   49.9  $383.5  $378.8   1.2   6.0   51.5   49.9 


  Nine Months Ended September 30, 
  EBITDA  EBITDA Margin  Adjusted EBITDA  Adjusted EBITDA Growth  Adjusted EBITDA Margin 
                          2022  2022         
  2022  2021  2022  2021  2022  2021  Reported  OCC  2022  2021 
Insurance $965.5  $911.2   53.4%  55.4% $973.2  $911.3   6.8%  6.2%  53.9%  55.4%
Energy and Specialized Markets  589.1   171.8   139.3   35.5   143.9   171.8   (16.3)  (3.8)  34.0   35.5 
Financial Services  (86.8)  12.0   (230.8)  11.4   6.5   12.0   (45.3)  -   17.4   11.4 
Consolidated $1,467.8  $1,095.0   64.7   49.0  $1,123.6  $1,095.1   2.6   4.8   49.6   49.1 

Earnings Per Share and Diluted Adjusted Earnings Per Share

Diluted EPS attributable to Verisk decreased 3.2% to $1.20 for the third quarter of 2022 due to the impact of the dispositions of 3E and Verisk Financial Services, including a loss incurred as part of a true-up of the normal closing adjustments, an adjustment to our acquisitions-related cost (earn-outs), and increased interest expense. This was partially offset by growth in our Insurance segment and a lower average share count.

Diluted adjusted EPS increased 1.4% to $1.46 for the third quarter of 2022 primarily due to growth in our Insurance segment and a lower average share count, partially offset by the impact of the dispositions of 3E and Verisk Financial Services, increased interest expense, and the suspension of all commercial operations in Russia.

Cash Flow and Free Cash Flow

Net cash provided by operating activities was $280.2 million for the third quarter of 2022, down 1.8% and free cash flow was $214.4 million, down 4.2%. Both cash flow measures were negatively affected by the dispositions of 3E and Verisk Financial Services. Free cash flow is a non-GAAP measure. See "Non-GAAP reconciliations" below for a reconciliation to the nearest GAAP measure.

Dividend

On September 30, 2022, we paid a cash dividend of 31 cents per share of common stock issued and outstanding to the holders of record as of September 15, 2022.

On October 26, 2022, our Board of Directors approved a cash dividend of 31 cents per share of common stock issued and outstanding, payable on December 30, 2022, to holders of record as of December 15, 2022.

Share Repurchases

Including the accelerated share repurchase (ASR) settled in the third quarter of 2022, we repurchased approximately 1.6 million shares at an average price of $187.08, for a total cost of $300 million for the third quarter of 2022. As of September 30, 2022, we had $407.5 million remaining under our share repurchase authorization.

Conference Call

Our management team will host a live audio webcast to discuss the financial results and business highlights on Wednesday, November 2, 2022, at 8:30 a.m. ET. 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 provides data-driven analytic insights and solutions for the insurance and energy industries. Through advanced data analytics, software, scientific research, and deep industry knowledge, Verisk empowers customers to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud, and make informed decisions about global issues, including climate change and extreme events as well as political and ESG topics. With offices in more than 30 countries, Verisk consistently earns certification by Great Place to Work® and fosters an inclusive culture where all team members feel they belong.

Verisk is traded on the Nasdaq exchange and is a part of the S&P 500 Index and the Nasdaq-100 Index.

For more information, please visit www.verisk.com.

Contact:

Investor Relations  
Stacey 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

Forward-Looking Statements

This release contains forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. This includes, but is not limited to, our expectation and ability to pay a cash dividend on our common stock in the future, subject to the determination by our Board of Directors and based on an evaluation of our earnings, financial condition and requirements, business conditions, capital allocation determinations, and other factors, risks, and uncertainties. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “target,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue” or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements, because they involve known and unknown risks, uncertainties, and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance.

Other factors that could materially affect actual results, levels of activity, performance, or achievements can be found in our quarterly reports on Form 10-Q, annual reports on Form 10-K, and current reports on Form 8-K filed with the Securities and Exchange Commission. If any of these risks or uncertainties materialize or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement in this release reflects our current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to our operations, results of operations, growth strategy, and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise.

Notes Regarding the Use of Non-GAAP Financial Measures

We have provided certain non-GAAP financial information as supplemental information regarding our operating results. These measures are not in accordance with, or an alternative for, U.S. GAAP and may be different from non-GAAP measures reported by other companies. We believe that our presentation of non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. In addition, our management uses these measures for reviewing our financial results, for budgeting and planning purposes, and for evaluating the performance of senior management.

EBITDA, Adjusted EBITDA, and Adjusted EBITDA Expenses: EBITDA represents GAAP net income adjusted for (i) depreciation and amortization of fixed assets; (ii) amortization of intangible assets; (iii) interest expense; and (iv) provision for income taxes. Adjusted EBITDA represents EBITDA adjusted for acquisition-related costs (earn-outs), gain/loss from dispositions (which includes businesses held for sale), and nonrecurring gain/loss. Adjusted EBITDA expenses represent adjusted EBITDA net of revenues. We believe these measures are useful and meaningful because they help us allocate resources, make business decisions, allow for greater transparency regarding our operating performance, and facilitate period-to-period comparison.

Adjusted Net Income and Diluted Adjusted EPS: Adjusted net income represents GAAP net income adjusted for (i) amortization of intangible assets, net of tax; (ii) acquisition-related costs (earn-outs), net of tax; (iii) gain/loss from dispositions (which includes businesses held for sale), net of tax; and (iv) nonrecurring gain/loss, net of tax. Diluted adjusted EPS represents adjusted net income divided by weighted-average diluted shares. We believe these measures are useful and meaningful because they allow evaluation of the after-tax profitability of our results excluding the after-tax effect of acquisition-related costs and nonrecurring items.

Free Cash Flow: Free cash flow represents net cash provided by operating activities determined in accordance with GAAP minus payments for capital expenditures. We believe free cash flow is an important measure of the recurring cash generated by our operations that may be available to repay debt obligations, repurchase our stock, invest in future growth through new business development activities, or make acquisitions.

Organic: Organic is defined as operating results excluding the effect of recent acquisitions and dispositions (which include businesses held for sale) that have occurred over the past year. An acquisition is included as organic at the beginning of the calendar quarter that occurs subsequent to the one-year anniversary of the acquisition date. Once an acquisition is included in its current-period organic base, its comparable prior-year-period operating results are also included to calculate organic growth. A disposition (which includes a business held for sale) is excluded from organic at the beginning of the calendar quarter in which the disposition occurs (or when a business meets the held-for-sale criteria under U.S. GAAP). Once a disposition is excluded from its current-period organic base, its comparable prior-year-period operating results are also excluded to calculate organic growth. We believe the organic presentation enables investors to assess the growth of the business without the impact of recent acquisitions for which there is no prior-year comparison and the impact of recent dispositions, for which results are removed from all prior periods presented to allow for comparability.

Organic Constant Currency (OCC) Growth Rate: Our operating results, such as, but not limited to, revenue and adjusted EBITDA, reported in U.S. dollars are affected by foreign currency exchange rate fluctuations because the underlying foreign currencies in which we transact changes in value over time compared with the U.S. dollar; accordingly, we present certain constant currency financial information to assess how we performed excluding the impact of foreign currency exchange rate fluctuations. We calculate constant currency by translating comparable prior-year-period results at the currency exchange rates used in the current period. We believe organic constant currency is a useful and meaningful measure to enhance investors’ understanding of the continuing operating performance of our business and to facilitate the comparison of period-to-period performance because it excludes the impact of foreign exchange rate movements, acquisitions, and dispositions.

See page 10 for a reconciliation of consolidated adjusted EBITDA and a segment results summary and a reconciliation of adjusted EBITDA. See page 11 for a reconciliation of segment adjusted EBITDA margin, a reconciliation of adjusted EBITDA expenses, and a reconciliation of diluted adjusted EPS. See page 12 for a reconciliation of net cash provided by operating activities to free cash flow.

Attached Financial Statements

Please refer to the full Form 10-Q filing for the complete financial statements and related notes.

VERISK ANALYTICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of September 30, 2022 and December 31, 2021

  September 30, 2022  December 31, 2021 
  (in millions, except for share and per share data) 
ASSETS: 
Current assets:        
Cash and cash equivalents $276.8  $280.3 
Accounts receivable, net of allowance for doubtful accounts of $17.7 and $21.3, respectively  458.4   446.3 
Prepaid expenses  102.4   102.6 
Income taxes receivable  40.4   36.7 
Other current assets  40.4   36.7 
Total current assets  918.4   902.6 
Noncurrent assets:        
Fixed assets, net  652.0   658.2 
Operating lease right-of-use assets, net  213.5   253.1 
Intangible assets, net  1,090.5   1,225.9 
Goodwill  3,655.6   4,331.2 
Deferred income tax assets  4.2   6.6 
Other noncurrent assets  440.4   430.5 
Total assets $6,974.6  $7,808.1 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY: 
Current liabilities:        
Accounts payable and accrued liabilities  312.2   320.7 
Short-term debt and current portion of long-term debt  1,067.7   971.3 
Deferred revenues  560.1   501.0 
Operating lease liabilities  35.2   41.2 
Income taxes payable  5.1   9.0 
Total current liabilities  1,980.3   1,843.2 
Noncurrent liabilities:        
Long-term debt  2,343.7   2,342.8 
Deferred income tax liabilities  384.5   470.5 
Operating lease liabilities  217.9   254.7 
Other noncurrent liabilities  42.2   54.4 
Total liabilities  4,968.6   4,965.6 
Commitments and contingencies        
Stockholders’ equity:        
Common stock, $.001 par value; 2,000,000,000 shares authorized; 544,003,038 shares issued; 156,842,018 and 161,651,639 shares outstanding, respectively  0.1   0.1 
Additional paid-in capital  2,733.5   2,608.7 
Treasury stock, at cost, 387,161,020 and 382,351,399 shares, respectively  (5,814.6)  (4,638.1)
Retained earnings  5,986.1   5,240.4 
Accumulated other comprehensive losses  (916.1)  (394.6)
Total Verisk stockholders' equity  1,989.0   2,816.5 
Noncontrolling interests  17.0   26.0 
Total stockholders’ equity  2,006.0   2,842.5 
Total liabilities and stockholders’ equity $6,974.6  $7,808.1 

VERISK ANALYTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Three and Nine Months Ended September 30, 2022 and 2021

  Three Months Ended September 30,  Nine Months Ended September 30, 
  2022  2021  2022  2021 
  (in millions, except for share and per share data) 
Revenues $745.3  $759.0  $2,267.1  $2,232.6 
Operating expenses (income):                
Cost of revenues (exclusive of items shown separately below)  246.7   265.3   773.3   792.6 
Selling, general and administrative  125.9   115.1   387.1   346.3 
Depreciation and amortization of fixed assets  51.7   52.1   151.1   153.9 
Amortization of intangible assets  36.6   37.6   121.0   133.1 
Other operating loss (income), net  7.8      (353.7)   
Total operating expenses, net  468.7   470.1   1,078.8   1,425.9 
Operating income  276.6   288.9   1,188.3   806.7 
Other income (expense):                
Investment income  3.1   0.1   7.4   1.3 
Interest expense  (34.5)  (29.9)  (97.6)  (96.8)
Total other expense, net  (31.4)  (29.8)  (90.2)  (95.5)
Income before income taxes  245.2   259.1   1,098.1   711.2 
Provision for income taxes  (55.7)  (54.2)  (205.0)  (186.7)
Net income  189.5   204.9   893.1   524.5 
Less: Net income attributable to noncontrolling interests  (0.1)  (3.2)  (0.3)  (0.2)
Net income attributable to Verisk $189.4  $201.7  $892.8  $524.3 
Basic net income per share attributable to Verisk $1.21  $1.25  $5.63  $3.24 
Diluted net income per share attributable to Verisk $1.20  $1.24  $5.59  $3.21 
Weighted-average shares outstanding:                
Basic  156,940,608   161,366,544   158,531,439   162,005,382 
Diluted  157,978,606   162,792,791   159,580,262   163,425,349 

VERISK ANALYTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Three and Nine Months Ended September 30, 2022 and 2021

  Three Months Ended September 30,  Nine Months Ended September 30, 
  2022  2021  2022  2021 
  (in millions) 
Cash flows from operating activities:                
Net income $189.5  $204.9  $893.1  $524.5 
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization of fixed assets  51.7   52.1   151.1   153.9 
Amortization of intangible assets  36.6   37.6   121.0   133.1 
Amortization of debt issuance costs and original issue discount, net of original issue premium  0.2   0.4   0.9   1.1 
Provision for doubtful accounts  1.5   4.3   4.4   13.0 
Loss (gain) on sale of assets  7.8      (427.4)   
Stock-based compensation expense 11.3   11.2   50.2   47.4 
Impairment of long-lived assets        73.7    
Deferred income taxes  (11.9)  1.3   (61.3)  33.9 
Loss on disposal of fixed assets  0.1   0.1   0.8   0.1 
Changes in assets and liabilities, net of effects from acquisitions:                
Accounts receivable  21.0   (7.9)  (82.3)  (48.9)
Prepaid expenses and other assets  6.0   (4.4)  (11.5)  (27.5)
Operating lease right-of-use assets, net  16.6   9.9   35.3   30.9 
Income taxes  24.9   10.9   2.3   11.5 
Accounts payable and accrued liabilities  36.4   49.2   (27.2)  29.2 
Deferred revenues  (93.4)  (71.2)  134.3   116.5 
Operating lease liabilities  (18.0)  (10.5)  (38.2)  (31.0)
Other liabilities  (0.1)  (2.7)  (9.2)  (20.6)
Net cash provided by operating activities  280.2   285.2   810.0   967.1 
Cash flows from investing activities:                
Acquisitions and purchase of additional controlling interest, net of cash acquired of $0.0 and $0.0; $17.4 and $5.7 respectively     (17.9)  (448.9)  (49.4)
Proceeds from sale of assets        1,073.3    
Investments in nonpublic companies  (2.1)  (6.0)  (43.9)  (21.1)
Capital expenditures  (65.8)  (61.4)  (195.0)  (183.1)
Escrow funding associated with acquisitions     (2.4)  (2.3)  (7.2)
Payment of contingent liability related to acquisition           (1.2)
Other investing activities, net           0.8 
Net cash (used in) provided by investing activities  (67.9)  (87.7)  383.2   (261.2)


  Three Months Ended September 30,  Nine Months Ended September 30, 
  2022  2021  2022  2021 
  (in millions) 
Cash flows from financing activities:                
Proceeds from short-term debt  290.0   15.0   330.0   355.0 
Repayment of current portion of long-term-debt  (350.0)     (350.0)  (450.0)
Proceeds from issuance of short-term debt with original maturities less than three months        125.0    
Repurchases of common stock  (300.0)  (150.0)  (1,196.3)  (400.0)
Proceeds from stock options exercised  18.6   23.9   111.6   44.9 
Net share settlement of taxes from restricted stock and performance share awards  (0.4)  (0.2)  (20.4)  (11.2)
Dividends paid  (48.6)  (46.8)  (147.2)  (141.0)
Other financing activities, net  (9.4)  (11.1)  (13.5)  (14.8)
Net cash used in financing activities  (399.8)  (169.2)  (1,160.8)  (617.1)
Effect of exchange rate changes  (16.4)  (2.5)  (35.9)  (5.5)
Net (decrease) increase in cash and cash equivalents  (203.9)  25.8   (3.5)  83.3 
Cash and cash equivalents, beginning of period  480.7   276.3   280.3   218.8 
Cash and cash equivalents, end of period $276.8  $302.1  $276.8  $302.1 
Supplemental disclosures:                
Income taxes paid $42.6  $45.8  $264.4  $144.7 
Interest paid $13.7  $21.2  $74.3  $90.9 
Noncash investing and financing activities:                
Deferred tax liability established on date of acquisition $  $1.1  $16.5  $5.5 
Net assets sold as part of the disposition $  $  $607.4  $ 
Finance lease additions $1.4  $1.9  $4.9  $4.5 
Operating lease additions, net $7.6  $11.6  $15.9  $21.0 
Fixed assets included in accounts payable and accrued liabilities $0.2  $10.5  $0.2  $10.5 

Non-GAAP Reconciliations

Consolidated Adjusted EBITDA Reconciliation
(in millions)
Note: EBITDA, adjusted EBITDA, and organic adjusted EBITDA are non-GAAP measures. Margin is calculated as a percentage of revenues.

  Three Months Ended September 30,  Nine Months Ended September 30, 
  2022  2021  2022  2021 
  Total  Margin  Total  Margin  Total  Margin  Total  Margin 
Net income $189.5   25.4% $204.9   27.0% $893.1   39.4% $524.5   23.5%
Depreciation and amortization of fixed assets  51.7   7.0   52.1   6.9   151.1   6.7   153.9   6.9 
Amortization of intangible assets  36.6   4.9   37.6   5.0   121.0   5.3   133.1   6.0 
Interest expense  34.5   4.6   29.9   3.9   97.6   4.3   96.8   4.3 
Provision for income taxes  55.7   7.5   54.2   7.1   205.0   9.0   186.7   8.3 
EBITDA  368.0   49.4   378.7   49.9   1,467.8   64.7   1,095.0   49.0 
Impairment loss              73.7   3.3       
Acquisition-related costs (earn-outs)  7.7   1.0   0.1      7.7   0.3   0.1   0.1 
Loss (gain) from dispositions  7.8   1.1         (427.4)  (18.8)      
Severance expense              1.8   0.1       
Adjusted EBITDA  383.5   51.5   378.8   49.9   1,123.6   49.6   1,095.1   49.1 
Adjusted EBITDA from acquisitions and dispositions  (6.1)  (0.9)  (24.0)  (3.1)  (32.6)  (1.5)  (59.5)  (2.7)
Organic adjusted EBITDA $377.4   50.6  $354.8   46.8  $1,091.0   48.1  $1,035.6   46.4 

Segment Results Summary and Adjusted EBITDA Reconciliation
(in millions)
Note: Organic revenues, EBITDA, adjusted EBITDA, and organic adjusted EBITDA are non-GAAP measures.

  Three Months Ended September 30, 2022  Three Months Ended September 30, 2021 
  Insurance  Energy and Specialized Markets  Financial Services  Insurance  Energy and Specialized Markets  Financial Services 
Revenues $610.1  $135.2  $  $557.9  $165.9  $35.2 
Revenues from acquisitions and dispositions  (28.1)        (16.2)  (1.1)   
Organic revenues $582.0  $135.2  $  $541.7  $164.8  $35.2 
                         
EBITDA $329.3  $40.1  $(1.4) $311.5  $60.5  $6.7 
Acquisition-related costs (earn-outs)  7.7         0.1       
(Gain) loss from dispositions     6.4   1.4          
Severance expense                  
Adjusted EBITDA  337.0   46.5   0.0   311.6   60.5   6.7 
Adjusted EBITDA from acquisitions and dispositions  (8.0)  1.9      (4.6)  (12.7)  (6.7)
Organic adjusted EBITDA $329.0  $48.4  $  $307.0  $47.8  $ 


  Nine Months Ended September 30, 2022  Nine Months Ended September 30, 2021 
  Insurance  Energy and Specialized Markets  Financial Services  Insurance  Energy and Specialized Markets  Financial Services 
Revenues $1,806.5  $423.0  $37.6  $1,643.5  $484.4  $104.7 
Revenues from acquisitions and dispositions  (76.3)  (26.5)  (37.6)  (44.7)  (1.5)   
Organic revenues $1,730.2  $396.5  $  $1,598.8  $482.9  $104.7 
                         
EBITDA $965.5  $589.1  $(86.8) $911.2  $171.8  $12.0 
Impairment loss        73.7          
Acquisition-related costs (earn-outs)  7.7         0.1       
(Gain) loss from dispositions     (447.0)  19.6          
Severance expense     1.8             
Adjusted EBITDA  973.2   143.9   6.5   911.3   171.8   12.0 
Adjusted EBITDA from acquisitions and dispositions  (18.0)  (8.1)  (6.5)  (14.8)  (32.7)  (12.0)
Organic adjusted EBITDA $955.2  $135.8  $0.0  $896.5  $139.1  $ 

Segment Adjusted EBITDA Margin Reconciliation
Note: Segment adjusted EBITDA margin is calculated as a percentage of respective segment revenues.

  Three Months Ended September 30, 2022  Three Months Ended September 30, 2021 
  Insurance  Energy and Specialized Markets  Financial Services  Insurance  Energy and Specialized Markets  Financial Services 
EBITDA margin  54.0%  29.6%  %  55.8%  36.5%  19.0%
Acquisition-related costs (earn-outs)  1.2         0.1       
(Gain) loss from dispositions     4.8             
Adjusted EBITDA margin  55.2   34.4      55.9   36.5   19.0 


  Nine Months Ended September 30, 2022  Nine Months Ended September 30, 2021 
  Insurance  Energy and Specialized Markets  Financial Services  Insurance  Energy and Specialized Markets  Financial Services 
EBITDA margin  53.4%  139.3%  (230.8)%  55.4%  35.5%  11.4%
Acquisition-related costs (earn-outs)  0.5                
Impairment loss        196.1          
(Gain) loss from dispositions     (105.7)  52.1          
Severance expense     0.4             
Adjusted EBITDA margin  53.9   34.0   17.4   55.4   35.5   11.4 

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, 
  2022  2021  2022  2021 
Operating expenses $468.7  $470.1  $1,078.8  $1,425.9 
Depreciation and amortization of fixed assets  (51.7)  (52.1)  (151.1)  (153.9)
Amortization of intangible assets  (36.6)  (37.6)  (121.0)  (133.1)
Investment (income) loss  (3.1)  (0.1)  (7.4)  (1.3)
Acquisition-related costs (earn-outs)  (7.7)  (0.1)  (7.7)  (0.1)
Impairment loss        (73.7)   
(Loss) gain from dispositions  (7.8)     427.4    
Severance expense        (1.8)   
Adjusted EBITDA expenses $361.8  $380.2  $1,143.5  $1,137.5 

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, 
  2022  2021  2022  2021 
Net income $189.5  $204.9  $893.1  $524.5 
plus: Amortization of intangibles  36.6   37.6   121.0   133.1 
less: Income tax effect on amortization of intangibles  (8.1)  (8.2)  (26.6)  (29.2)
plus: Acquisition-related costs and interest expense (earn-outs)  7.7   0.1   7.7   0.1 
less: Income tax effect on acquisition-related costs and interest expense (earn-outs)  (1.8)     (1.8)   
plus: Impairment loss        73.7    
less: Income tax effect on impairment loss        (16.8)   
plus: Loss (gain) from dispositions  7.8      (427.4)   
less: Income tax effect on (loss) gain from dispositions  (1.8)     66.8    
plus: Severance expense        1.8    
less: Income tax effect on severance expense        (0.4)   
Adjusted net income $229.9  $234.4  $691.1  $628.5 
                 
Diluted EPS attributable to Verisk $1.20  $1.24  $5.59  $3.21 
Diluted adjusted EPS $1.46  $1.44  $4.33  $3.85 
                 
Weighted-average diluted shares outstanding  158.0   162.8   159.6   163.4 

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,     
  2022  2021  Change  2022  2021  Change 
Net cash provided by operating activities $280.2  $285.2   (1.8)% $810.0  $967.1   (16.2)%
Capital expenditures  (65.8)  (61.4)  7.2   (195.0)  (183.1)  6.5 
Free cash flow $214.4  $223.8   (4.2) $615.0  $784.0   (21.6)


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

Primary Logo

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Photos copyright by Jay Graham Photographer
Copyright © 2010-2020 Sausalito.com & California Media Partners, LLC. All rights reserved.