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Verisk Analytics : Reports First-Quarter 2016 Financial Results

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05/03/2016 | 10:11pm CEST


·         Total revenue from continuing operations grew 28.2%; organic revenue
growth from continuing operations was 5.0%, excluding recent acquisitions.
·         Income from continuing operations grew 13.9% to $110 million; adjusted
EBITDA from continuing operations grew 24.0% to $248 million.
·         Diluted GAAP earnings per share from continuing operations (diluted
GAAP EPS) grew 6.7% to $0.64; diluted adjusted EPS from continuing operations
increased 19.0% to $0.75.
·         Net cash provided by operating activities from continuing operations
less capital expenditures from continuing operations was $256 million, an
increase of 20.0% year to date.
·         Signed a definitive agreement on April 25, 2016 to sell the healthcare
business for a total value of $820 million.
·         Repurchased a total of $116 million of its common stock under its
existing repurchase program in first-quarter 2016. As of March 31, 2016, the
Company had $353 million remaining under its share repurchase authorization.
JERSEY CITY, N.J., May 3, 2016 - Verisk Analytics, Inc. (Nasdaq:VRSK), a leading
data analytics provider, today announced results for the fiscal quarter ended
March 31, 2016.
Scott Stephenson, chairman, president, and CEO, said, "Our first-quarter results
were solid, with good organic revenue growth, led by our insurance-facing
businesses, and industry-leading EBITDA margins. Wood Mackenzie performed well,
highlighting the resilience of the business in a challenging environment for our
customers. With the recently announced agreement to sell the healthcare
business, we are more Verisk-like, with proprietary data driving analytics that
are embedded in our customer workflows. This focus will allow us to pursue our
distinctive strategy and global ambitions. We are positioned to drive profitable
growth and create value for our shareholders over the long term."
All numbers referring to continuing operations exclude the healthcare business.
See Table 8 below for 2015 results by quarter on a continuing operations basis.
Table 1: Summary of Results
(in millions, except per share amounts)
Note: Continuing operations exclude the healthcare business.

                                                  Three Months Ended

                                                       March 31,

                                                   2016        2015      Change
                                                ----------- ----------- -------
 Revenues from continuing operations             $ 492.7     $ 384.3     28.2 %

 Adjusted EBITDA from continuing operations      $ 248.4     $ 200.3     24.0 %

 Income from continuing operations               $   109.7   $  96.4     13.9 %

 Adjusted net income from continuing operations  $ 127.4     $ 101.0     26.1 %

 Diluted GAAP EPS from continuing operations     $  0.64     $  0.60      6.7 %

 Diluted adjusted EPS from continuing operations $  0.75     $  0.63     19.0 %



Revenue
Total revenue from continuing operations increased 28.2% in first-quarter 2016
compared with first-quarter 2015. Organic revenue growth from continuing
operations was 5.0%, excluding recent acquisitions in both periods. Insurance
solutions drove the organic revenue growth in the quarter.
Decision Analytics segment revenue from continuing operations grew 46.7% in the
first quarter of 2016 and represented approximately 63.5% of total revenue.
Decision Analytics organic revenue growth from continuing operations was 4.8%,
excluding recent acquisitions.
·         Insurance category revenue increased 11.6%, led by strong growth in
claims analytics solutions, with good growth in the quarter in loss
quantification, catastrophe modeling, and underwriting solutions. Loss
quantification benefited from a true-up of partnership revenue.
·         Financial services category revenue decreased 19.0% in the quarter,
with solid underlying demand for our core solutions offset by prior-year project
revenue that did not recur in 2016. Growth excluding the prior year project
revenue was 17.7%.
·         Energy and specialized markets category organic revenue declined
3.6%. Including the recently acquired Wood Mackenzie, PCI, and Infield
businesses, growth was 361.9%.
Table 2: Decision Analytics Revenues by Category
(in millions)
Note: Continuing operations exclude the healthcare business.

                                 Three Months Ended

                                      March 31,

                                  2016        2015       Change
                               ----------- ----------- ---------
 Insurance                      $ 171.5     $ 153.7      11.6  %

 Financial services                28.5        35.2     (19.0 )%

 Energy and specialized markets   112.9        24.5     361.9  %
                               ----------- -----------
 Total Decision Analytics       $ 312.9     $ 213.4      46.7  %
                               ----------- -----------

Risk Assessment segment revenue grew 5.2% in the quarter.
·         Revenue growth in industry-standard insurance programs was 5.2%,
resulting primarily from the annual effect of growth in 2016 invoicing effective
from January 1 and growth from new solutions.
·         Property-specific rating and underwriting information revenue grew
4.9% in the first quarter. Growth was led by an increase in commercial
underwriting solutions subscription revenue.
Table 3: Risk Assessment Revenues by Category
(in millions)

                                                  Three Months Ended

                                                       March 31,

                                                   2016        2015      Change
                                                ----------- ----------- -------
 Industry-standard insurance programs            $ 137.4     $ 130.6     5.2  %

 Property-specific rating and underwriting
 information                                        42.4        40.3     4.9  %
                                                ----------- -----------
 Total Risk Assessment                           $ 179.8     $ 170.9     5.2  %
                                                ----------- -----------

Expenses and Adjusted EBITDA
Cost of revenues from continuing operations increased 29.5% compared with first-
quarter 2015. The year-over-year increase is primarily due to contributions from
acquisitions as well as salaries and benefits to support business growth.
Selling, general, and administrative expense, or SG&A, from continuing
operations increased 42.9% in the quarter, primarily due to acquisitions.
Income from continuing operations increased 13.9% to $110 million. Adjusted
EBITDA from continuing operations increased 24.0%. Excluding acquisitions,
adjusted EBITDA from continuing operations increased 7.1% in the quarter.
·         The 40.0% increase in Decision Analytics adjusted EBITDA from
continuing operations to $139 million was the result of acquisitions and
profitable growth of the business. Decision Analytics adjusted EBITDA from
continuing operations in the quarter, excluding recent acquisitions, grew 5.9%.

·         First-quarter 2016 adjusted EBITDA in Risk Assessment increased 8.3%
to $109 million as a result of revenue growth and good expense management.
Table 4: Segment Results Summary
(in millions)
Note: Continuing operations exclude the healthcare business.

                    Three Months Ended                    Three Months Ended

                      March 31, 2016                        March 31, 2015                          Change
           ------------------------------------- ------------------------------------ ----------------------------------
                DA          RA         Total         DA          RA         Total         DA          RA         Total
           ------------ ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------
 Revenues   $  312.9     $ 179.8     $  492.7     $ 213.4     $ 170.9     $  384.3       46.7  %      5.2  %     28.2  %

 Cost of
 revenues     (121.6 )     (51.7 )     (173.3 )     (82.8 )     (50.9 )     (133.7 )     46.8  %      1.4  %     29.5  %

 SG&A          (52.3 )     (18.7 )      (71.0 )     (30.7 )     (19.0 )      (49.7 )     70.9  %     (2.2 )%     42.9  %

 Investment
 income and
 other           0.1        (0.1 )          -        (0.6 )         -         (0.6 )   (119.6 )%   (201.0 )%   (108.7 )%
             ----------   ---------   ----------   ---------   ---------   ----------
 Adjusted
 EBITDA
 from
 continuing
 operations $  139.1     $ 109.3     $  248.4     $  99.3     $ 101.0     $  200.3       40.0  %      8.3  %     24.0  %



 Adjusted
 EBITDA
 margin
 from
 continuing
 operations     44.4 %      60.8 %       50.4 %      46.6 %      59.1 %       52.1 %



Adjusted EPS
Diluted GAAP net income per share from continuing operations was $0.64. Diluted
adjusted earnings per share (adjusted EPS) from continuing operations were $0.75
for first-quarter 2016, an increase of 19.0% compared with the same period in
2015. Adjusted EPS from continuing operations increased because of solid
operations, both organic and acquired. The increases were partially offset by
higher fixed asset depreciation and amortization expense and higher interest
costs related to new debt issuance.

Free Cash Flow
Free cash flow from continuing operations, defined as cash provided by operating
activities from continuing operations less capital expenditures from continuing
operations, increased 20.0% to $256 million for the three-month period ended
March 31, 2016, including the contribution from acquisitions. This represented
103.2% of adjusted EBITDA from continuing operations. Capital expenditures from
continuing operations increased 22.7% to $25 million in the three months ended
March 31, 2016. For continuing operations, capital expenditures were 5.1% of
revenues for the three months ended March 31, 2016

Share Repurchases and Financing Activities
The Company repurchased 1.7 million shares in the quarter, at an average price
of $69.97, for a total return of capital to shareholders of $116 million. At
March 31, 2016, the company had $353 million remaining under its share
repurchase authorization. As part of its commitment to delevering, the Company
repaid $165 million of debt in the quarter.

Conference Call
Verisk's management team will host a live audio webcast on Wednesday, May
4, 2016, at 8:30 a.m. EDT (5:30 a.m. PDT, 13:30 p.m. BST) to discuss the
financial results and business highlights. All interested parties are invited to
listen to the live event via webcast on the Verisk investor website at
http://investor.verisk.com. The discussion is also available through dial-in
number 1-877-755-3792 for U.S./Canada participants or 512-961-6560 for
international participants.
A replay of the webcast will be available for 30 days on the Verisk investor
website and also through the conference call number 1-855-859-2056 for
U.S./Canada participants or 404-537-3406 for international participants using
Conference ID #87057315.
About Verisk Analytics
Verisk Analytics (Nasdaq:VRSK) is a leading data analytics provider serving
customers in insurance, natural resources, healthcare, financial services,
government, and risk management. Using advanced technologies to collect and
analyze billions of records, Verisk Analytics draws on unique data assets and
deep domain expertise to provide first-to-market innovations that are integrated
into customer workflows. Verisk offers predictive analytics and decision support
solutions to customers in rating, underwriting, claims, catastrophe and weather
risk, global risk analytics, natural resources intelligence, economic
forecasting, and many other fields. In the United States and around the world,
Verisk Analytics helps customers protect people, property, and financial assets.

Headquartered in Jersey City, N.J., Verisk Analytics operates in 23 countries
and is a member of Standard & Poor's (S&P) 500® Index. In 2015, Forbes magazine
named Verisk Analytics to its World's Most Innovative Companies list and, in
2016, to its America's Best Large Employers list. Verisk is one of only 15
companies in the United States to appear on both lists. For more information,
please visit www.verisk.com
Contact:
Investor Relations
Eva Huston
Senior Vice President, Treasurer, and Chief Knowledge Officer
Verisk Analytics, Inc.
201-469-2142
eva.huston@verisk.com

David Cohen
Director, Investor Relations and Strategic Finance
Verisk Analytics, Inc.
201-469-2174
david.e.cohen@verisk.com
Media
Rich Tauberman
MWW Group (for Verisk Analytics)
202-600-4546
rtauberman@mww.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. 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 Verisk's 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
The company has provided certain non-GAAP financial information as supplemental
information regarding its 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. The company believes that its
presentation of non-GAAP measures, such as adjusted EBITDA, adjusted EBITDA
margin, adjusted net income from continuing operations, adjusted EPS, and free
cash flow, provides useful information to management and investors regarding
certain financial and business trends relating to its financial condition and
results of operations. In addition, the company's management uses these measures
for reviewing the financial results of the company and for budgeting and
planning purposes.
Adjusted EBITDA is a financial measure that management uses to evaluate the
performance of our segments. In all periods shown here and going forward, the
company defines "adjusted EBITDA" as net income from continuing operations
before interest expense, income taxes, and depreciation and amortization of
fixed and intangible assets and excluding second quarter nonrecurring items
related to the Wood Mackenzie acquisition.
Although securities analysts, lenders, and others frequently use EBITDA in their
evaluation of companies, EBITDA has limitations as an analytical tool and should
not be considered in isolation or as a substitute for an analysis of our
statement of cash flow reported under U.S. GAAP. Management uses adjusted EBITDA
in conjunction with traditional U.S. GAAP operating performance measures as part
of its overall assessment of company performance. Some of these limitations are
as follows:
·                 Adjusted EBITDA does not reflect our cash expenditures or
future requirements for capital expenditures or contractual commitments.
·                 Adjusted EBITDA does not reflect changes in, or cash
requirements for, our working capital needs.
·                 Although depreciation and amortization are noncash charges,
the assets being depreciated and amortized often will have to be replaced in the
future, and adjusted EBITDA does not reflect any cash requirements for such
replacements.
·                 Other companies in our industry may calculate adjusted EBITDA
differently than we do, limiting the usefulness of their calculations as
comparative measures.
Table 5: Adjusted EBITDA Reconciliation
(in millions)
Note: Continuing operations exclude the healthcare business.

                                                Three Months Ended

                                                     March 31,

                                                 2016        2015       Change
                                              ----------- ----------- ---------
 Income from continuing operations             $ 109.7     $  96.4      13.9  %

 Depreciation and amortization of fixed and
 intangible assets                                55.8        26.9     107.7  %

 Interest expense                                 32.0        18.2      75.4  %

 Provision for income taxes                       50.9        58.8     (13.4 )%
                                              ----------- -----------
 Adjusted EBITDA from continuing operations    $ 248.4     $ 200.3      24.0  %
                                              ----------- -----------


Table 6: Adjusted Net Income from Continuing Operations Reconciliation
(in millions, except per share amounts)
Note: Continuing operations exclude the healthcare business.

                                                  Three Months Ended

                                                       March 31,

                                                   2016        2015      Change
                                                ----------- ----------- -------
 Income from continuing operations               $ 109.7     $  96.4     13.9 %

 plus: Amortization of intangible assets            23.9         7.5

 less: Income tax effect on amortization of
 intangible assets                                  (6.2 )      (2.9 )
                                                ----------- -----------
 Adjusted net income from continuing operations  $ 127.4     $ 101.0     26.1 %
                                                ----------- -----------


 Basic adjusted EPS from continuing operations   $  0.76     $  0.64     18.8 %
                                                ----------- -----------
 Diluted adjusted EPS from continuing operations $  0.75     $  0.63     19.0 %
                                                ----------- -----------


 Weighted average shares outstanding

 Basic                                             168.5       158.1
                                                ----------- -----------
 Diluted                                           171.5       161.5
                                                ----------- -----------

Table 7: Free Cash Flow Reconciliation
(in millions)
Note: Continuing operations exclude the healthcare business.

                                                  Three Months Ended

                                                       March 31,

                                                   2016        2015      Change
                                                ----------- ----------- -------
 Operating cash flow from continuing operations  $ 281.8     $ 234.4     20.2 %

 less: Capital expenditures from continuing
 operations                                        (25.3 )     (20.6 )   22.7 %
                                                ----------- -----------
 Free cash flow from continuing operations       $ 256.5     $ 213.8     20.0 %
                                                ----------- -----------


Table 8: Selected Summary Financial Results by Segment from Continuing
Operations for 2015 by Quarter
(in millions, except per share amounts)
Note: Continuing operations exclude the healthcare business.

Segment Results

 Decision
 Analytics         Q1 2015     Q2 2015     Q3 2015      Q4 2015       FY 2015
                 ----------- ----------- ------------ ------------ ------------
 Revenues         $ 213.4     $ 256.9     $  298.6     $  303.6     $ 1,072.5

 Expenses

   Cost of
 revenues           (82.8 )     (98.3 )     (114.6 )     (110.4 )      (406.1 )

   Selling,
 general and
 administrative     (30.7 )     (41.8 )      (49.4 )      (53.9 )      (175.8 )

 Investment
 income
 (expense), net      (0.6 )      (0.4 )        2.4         (0.2 )         1.2

 Gain on sale of
 warrants               -           -         15.6            -          15.6

 Gain on
 derivative
 instruments            -        85.2            -            -          85.2

 Non-recurring
 items related to
 the Wood
 Mackenzie
 acquisition            -       (26.6 )          -            -         (26.6 )
                 ----------- ----------- ------------ ------------ ------------
   EBITDA from
 continuing
 operations          99.3       175.0        152.6        139.1         566.0
                 ----------- ----------- ------------ ------------ ------------

 Risk Assessment

 Revenues              170.9       171.7       171.8       173.8        688.2

 Expenses

   Cost of revenues    (50.9 )     (50.4 )     (48.3 )     (50.4 )     (200.0 )

   Selling, general
 and administrative    (19.0 )     (20.0 )     (21.2 )     (21.6 )      (81.8 )

 Investment income
 (expense), net            -         0.2        (0.1 )         -          0.1
                    ----------- ----------- ----------- ----------- -----------
  EBITDA from
 continuing
 operations            101.0       101.5       102.2       101.8        406.5
                    ----------- ----------- ----------- ----------- -----------

                    ----------- ----------- ----------- ----------- -----------
 Total EBITDA from
 continuing
 operations          $ 200.3     $ 276.5     $ 254.8     $ 240.9     $  972.5
                    ----------- ----------- ----------- ----------- -----------

 Consolidated

 Revenues       $  384.3     $  428.6     $  470.4     $  477.4     $ 1,760.7

 Expenses

   Cost of
 revenues         (133.7 )     (148.7 )     (162.9 )     (160.8 )      (606.1 )

   Selling,
 general and
 administrative    (49.7 )      (61.8 )      (70.6 )      (75.5 )      (257.6 )

 Investment
 income
 (expense), net     (0.6 )       (0.2 )        2.3         (0.2 )         1.3

 Gain on sale
 of warrants           -            -         15.6            -          15.6
               ------------ ------------ ------------ ------------ ------------
 Adjusted
 EBITDA from
 continuing
 operations        200.3        217.9        254.8        240.9         913.9

 Gain on
 derivative
 instruments           -         85.2            -            -          85.2

 Non-recurring
 items related
 to the Wood
 Mackenzie
 acquisition           -        (26.6 )          -            -         (26.6 )
               ------------ ------------ ------------ ------------ ------------
 Total EBITDA
 from
 continuing
 operations        200.3        276.5        254.8        240.9         972.5

 Depreciation
 and
 amortization
 of fixed
 assets            (19.4 )      (22.7 )      (27.1 )      (27.4 )       (96.6 )

 Amortization
 of intangible
 assets             (7.5 )      (22.8 )      (12.6 )      (27.5 )       (70.4 )

 Interest
 expense           (18.2 )      (24.3 )      (33.0 )      (32.5 )      (108.0 )

 Non-recurring
 items related
 to the Wood
 Mackenzie
 acquisition           -        (13.4 )          -            -         (13.4 )
               ------------ ------------ ------------ ------------ ------------
 Income from
 continuing
 operations
 before income
 taxes             155.2        193.3        182.1        153.5         684.1

 Provision for
 income taxes      (58.8 )      (34.4 )      (57.9 )      (45.5 )      (196.6 )
               ------------ ------------ ------------ ------------ ------------
 Income from
 continuing
 operations         96.4        158.9        124.2        108.0         487.5

 Amortization
 of intangible
 assets              7.5         22.8         12.6         27.5          70.4

 Less:  Income
 tax effect on
 amortization
 of intangible
 assets             (2.9 )       (5.8 )       (3.3 )       (7.2 )       (19.2 )

 Plus:  Non-
 recurring
 items related
 to the Wood
 Mackenzie
 acquisition           -        (45.2 )          -            -         (45.2 )

 Less:  Income
 tax effect on
 one-time items
 related to the
 Wood Mackenzie
 acquisition           -        (10.7 )          -            -         (10.7 )
               ------------ ------------ ------------ ------------ ------------
 Adjusted net
 income from
 continuing
 operations     $  101.0     $  120.0     $  133.5     $  128.3     $   482.8
               ------------ ------------ ------------ ------------ ------------


 Diluted
 adjusted EPS
 from
 continuing
 operations     $   0.63     $   0.72     $   0.78     $   0.74     $    2.87
               ------------ ------------ ------------ ------------ ------------


Attached Financial Statements
Please refer to the full Form 10-Q filing for the complete financial statements
and related notes.
VERISK ANALYTICS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of March 31, 2016 and December 31, 2015

                                                     2016             2015
                                               ---------------- ---------------
                                                   (In thousands, except for
                                                   share and per share data)

                                     ASSETS

 Current assets:

 Cash and cash equivalents                      $    131,818     $    138,348

 Available-for-sale securities                         3,472            3,576

 Accounts receivable, net of allowance for
 doubtful accounts of $2,803 and $2,642,
   respectively                                      297,312          250,947

 Prepaid expenses                                     30,828           34,126

 Income taxes receivable                               8,561           48,596

 Other current assets                                 52,307           52,913

 Current assets held-for-sale                         62,485           76,063
                                               ---------------- ---------------
 Total current assets                                586,783          604,569

 Noncurrent assets:

 Fixed assets, net                                   341,989          350,311

 Intangible assets, net                            1,191,470        1,245,083

 Goodwill                                          2,703,914        2,753,026

 Pension assets                                       36,188           32,922

 Other assets                                         24,558           25,845

 Noncurrent assets held-for-sale                     574,245          581,896
                                               ---------------- ---------------
 Total assets                                   $  5,459,147     $  5,593,652
                                               ---------------- ---------------
                      LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:

 Accounts payable and accrued liabilities       $    179,671     $    222,112

 Short-term debt and current portion of long-
 term debt                                           709,143          874,811

 Pension and postretirement benefits, current          1,831            1,831

 Deferred revenues                                   486,551          340,833

 Income tax payable                                    7,918                -

 Current liabilities held-for-sale                    31,765           39,670
                                               ---------------- ---------------
 Total current liabilities                         1,416,879        1,479,257

 Noncurrent liabilities:

 Long-term debt                                    2,271,879        2,270,904

 Pension benefits                                     12,781           12,971

 Postretirement benefits                               2,015            1,981

 Deferred income taxes, net                          342,166          329,175

 Other liabilities                                    53,302           58,360

 Noncurrent liabilities held-for-sale                 69,660           68,993
                                               ---------------- ---------------
 Total liabilities                                 4,168,682        4,221,641
                                               ---------------- ---------------
 Commitments and contingencies

 Stockholders' equity:

 Common stock, $.001 par value; 2,000,000,000
 shares authorized; 544,003,038
   shares issued and 167,980,063 and
 169,424,981 outstanding, respectively                   137              137

 Additional paid-in capital                        2,038,747        2,023,390

 Treasury stock, at cost, 376,022,975 and
 374,578,057 shares, respectively                 (2,686,007 )     (2,571,190 )

 Retained earnings                                 2,254,365        2,161,726

 Accumulated other comprehensive losses             (316,777 )       (242,052 )
                                               ---------------- ---------------
 Total stockholders' equity                        1,290,465        1,372,011
                                               ---------------- ---------------
 Total liabilities and stockholders' equity     $  5,459,147     $  5,593,652
                                               ---------------- ---------------


                             VERISK ANALYTICS, INC.
               CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
               For the Three Months Ended March 31, 2016 and 2015

                                             Three Months Ended March 31,
                                       ----------------------------------------
                                             2016                 2015
                                       ----------------- ----------------------
                                        (In thousands, except for share and per
                                                      share data)

 Revenues                               $     492,701     $     384,293
                                       ----------------- ----------------------
 Expenses:

 Cost of revenues (exclusive of items
 shown separately below)                      173,277           133,784

 Selling, general and administrative           71,037            49,714

 Depreciation and amortization of fixed
 assets                                        31,887            19,388

 Amortization of intangible assets             23,871             7,455
                                       ----------------- ----------------------
 Total expenses                               300,072           210,341
                                       ----------------- ----------------------
 Operating income                             192,629           173,952
                                       ----------------- ----------------------
 Other income (expense):

 Investment income (loss) and others,
 net                                               44              (502 )

 Interest expense                             (32,032 )         (18,262 )
                                       ----------------- ----------------------
 Total other expense, net                     (31,988 )         (18,764 )
                                       ----------------- ----------------------
 Income from continuing operations
 before income taxes                          160,641           155,188

 Provision for income taxes                   (50,911 )         (58,815 )
                                       ----------------- ----------------------
 Income from continuing operations            109,730            96,373
                                       ----------------- ----------------------
 Discontinued operations (Note 6)

 Income from discontinued operations            1,780             4,304

 Provision for income taxes from
 discontinued operations                      (18,871 )          (1,991 )
                                       ----------------- ----------------------
 (Loss) income from discontinued
 operations                                   (17,091 )           2,313
                                       ----------------- ----------------------
 Net income                             $      92,639     $      98,686
                                       ----------------- ----------------------
 Basic net income per share:

 Income from continuing operations      $        0.65     $        0.61

 (Loss) income from discontinued
 operations                                     (0.10 )            0.01
                                       ----------------- ----------------------
 Basic net income per share             $        0.55     $        0.62
                                       ----------------- ----------------------
 Diluted net income per share:

 Income from continuing operations      $        0.64     $        0.60

 (Loss) income from discontinued
 operations                                     (0.10 )            0.01
                                       ----------------- ----------------------
 Diluted net income per share           $        0.54     $        0.61
                                       ----------------- ----------------------
 Weighted average shares outstanding:

 Basic                                    168,453,750       158,087,919
                                       ----------------- ----------------------
 Diluted                                  171,480,884       161,481,213
                                       ----------------- ----------------------




                             VERISK ANALYTICS, INC.
               CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
               For the Three Months Ended March 31, 2016 and 2015

                                                        2016           2015
                                                   -------------- -------------
                                                          (In thousands)

 Cash flows from operating activities:

 Net income                                         $   92,639     $   98,686

 Adjustments to reconcile net income to net cash
 provided by operating activities:

 Depreciation and amortization of fixed assets          38,874         24,442

 Amortization of intangible assets                      29,775         14,141

 Amortization of debt issuance costs and original
 issue discount                                          1,128          1,195

 Allowance for doubtful accounts                           518            125

 KSOP compensation expense                               4,286          3,821

 Stock based compensation                                5,547          4,224

 Realized loss on available-for-sale securities,
 net                                                       190              6

 Deferred income taxes                                  17,807            506

 (Gain) loss on disposal of fixed assets                   (93 )           15

 Changes in assets and liabilities, net of effects
 from acquisitions:

 Accounts receivable                                   (34,016 )       (6,094 )

 Prepaid expenses and other assets                       4,088          2,861

 Income taxes                                           49,613         56,951

 Accounts payable and accrued liabilities              (46,156 )      (33,169 )

 Deferred revenues                                     146,477        106,935

 Pension and postretirement benefits                    (2,580 )       (3,264 )

 Other liabilities                                      (4,218 )         (391 )
                                                   -------------- -------------
 Net cash provided by operating activities             303,879        270,990
                                                   -------------- -------------
 Cash flows from investing activities:

 Acquisitions, net of cash acquired of $0 and $232,
 respectively                                                -           (405 )

 Purchase of non-controlling interest in non-public
 companies                                                   -           (101 )

 Capital expenditures                                  (30,763 )      (24,760 )

 Purchases of available-for-sale securities                 (3 )           (8 )

 Proceeds from sales and maturities of available-
 for-sale securities                                        96             49

 Other investing activities, net                          (620 )            -
                                                   -------------- -------------
 Net cash used in investing activities                 (31,290 )      (25,225 )
                                                   -------------- -------------
 Cash flows from financing activities:

 Repayments of short-term debt, net                   (165,000 )     (130,000 )

 Payment of debt issuance costs                              -         (9,100 )

 Repurchases of common stock                          (116,363 )            -

 Proceeds from stock options exercised                   4,727          8,336

 Other financing activities, net                        (1,169 )       (1,293 )
                                                   -------------- -------------
 Net cash used in financing activities                (277,805 )     (132,057 )
                                                   -------------- -------------
 Effect of exchange rate changes                        (1,314 )         (220 )
                                                   -------------- -------------
 (Decrease) increase in cash and cash equivalents       (6,530 )      113,488

 Cash and cash equivalents, beginning of period        138,348         39,359
                                                   -------------- -------------
 Cash and cash equivalents, end of period           $  131,818     $  152,847
                                                   -------------- -------------
 Supplemental disclosures:

 Taxes paid                                         $    2,780     $    3,258
                                                   -------------- -------------
 Interest paid                                      $   17,517     $   17,328
                                                   -------------- -------------
 Noncash investing and financing activities:

 Tenant improvement included in other liabilities   $       34     $        -
                                                   -------------- -------------
 Capital lease obligations                          $      347     $      416
                                                   -------------- -------------
 Capital expenditures included in accounts payable
 and accrued liabilities                            $    1,681     $      856
                                                   -------------- -------------




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(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
    
Source: Verisk Analytics Inc. via GlobeNewswire
[HUG#2009620]

 
  

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