MORN FY 2008 Earnings Report — Morningstar, Inc. Revenue & Financial Results | Market Cap Arena

Morningstar, Inc.MORN

FY 2008 Earnings

Reported March 5, 2009

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2008	Prior Q	FY 2007	QoQ Change	YoY Change
Revenue	$502M	—	$435M	—	15.5%
Op. Income	$139M	—	$117M	—	18.6%
Gross Margin	74.1%	—	73.9%	—	0.3pp
Net Margin	18.4%	—	17.0%	—	1.4pp
EPS (Diluted)	$1.88	—	$1.53	—	22.9%
Free Cash Flow	$104M	—	$101M	—	2.9%

Revenue Flow

Item	Amount
REVENUE	$502M
Cost of Revenue	$130M
GROSS PROFIT	$372M
R&D Expenses	$40M
Selling & Marketing	$82M
General & Administrative	$85M
SG&A Expenses	$167M
Other Expenses	$26M
Operating Expenses	$233M
Cost & Expenses	$363M
OPERATING INCOME	$139M
Interest Income	$0
Interest Expense	$0
Other Income/Expenses	$6M
INCOME BEFORE TAX	$145M
Income Tax Expense	$52M
Net Income from Continuing Ops	$91M
Net Income from Discontinued Ops	$0
Other Adjustments	$2M
NET INCOME	$93M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$93M
D&A	$26M
EBIT	$139M
EBITDA	$165M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$502M
Cost of Revenue	$130M
GROSS PROFIT	$372M
R&D Expenses	$40M
Selling & Marketing	$82M
General & Administrative	$85M
SG&A Expenses	$167M
Other Expenses	$26M
Operating Expenses	$233M
Cost & Expenses	$363M
OPERATING INCOME	$139M
Interest Income	$0
Interest Expense	$0
Other Income/Expenses	$6M
INCOME BEFORE TAX	$145M
Income Tax Expense	$52M
Net Income from Continuing Ops	$91M
Net Income from Discontinued Ops	$0
Other Adjustments	$2M
NET INCOME	$93M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$93M
D&A	$26M
EBIT	$139M
EBITDA	$165M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$93M
Depreciation & Amortization	$26M
Stock-Based Compensation	$11M
Deferred Income Tax	$9M
Other Non-Cash Items	-$23M
Change in Working Capital	$37M
OPERATING CASH FLOW	$152M
Capital Expenditure	-$49M
Acquisitions (Net)	-$105M
Purchases of Investments	-$134M
Sales/Maturities of Investments	$109M
Other Investing Activities	-$250.0K
NET CASH FROM INVESTING	-$179M
Net Debt Issuance	$0
Common Stock Repurchased	$0
Common Dividends Paid	$0
Other Financing Activities	$48M
NET CASH FROM FINANCING	$48M
FREE CASH FLOW	$104M
Net Change in Cash	$14M

Balance Sheet

Item	Amount
Cash & Equivalents	$174M
Short-Term Investments	$124M
Net Receivables	$99M
Inventory	$0
Other Current Assets	$17M
TOTAL CURRENT ASSETS	$414M
PP&E (Net)	$59M
Goodwill	$187M
Intangible Assets	$120M
Long-Term Investments	$20M
Tax Assets	$0
Other Non-Current Assets	$4M
TOTAL NON-CURRENT ASSETS	$390M
TOTAL ASSETS	$804M
Account Payables	$0
Short-Term Debt	$0
Deferred Revenue	$130M
Other Current Liabilities	$88.0K
TOTAL CURRENT LIABILITIES	$233M
Long-Term Debt	$0
Deferred Revenue NC	$0
Deferred Tax Liabilities	$8M
Other Non-Current Liabilities	$27M
TOTAL NON-CURRENT LIABILITIES	$35M
TOTAL LIABILITIES	$268M
Common Stock	$0
Additional Paid-In Capital	$390M
Retained Earnings	$164M
Treasury Stock	-$3M
Accum. Other Comp. Income	-$16M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$536M
Minority Interest	$0
TOTAL EQUITY	$536M
TOTAL LIABILITIES & EQUITY	$804M
Total Debt	$0
Net Debt	-$174M