MORN FY 2009 Earnings Report — Morningstar, Inc. Revenue & Financial Results | Market Cap Arena

Morningstar, Inc.MORN

FY 2009 Earnings

Reported March 1, 2010

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2009	Prior Q	FY 2008	QoQ Change	YoY Change
Revenue	$479M	—	$502M	—	-4.7%
Op. Income	$125M	—	$139M	—	-10.4%
Gross Margin	73.1%	—	74.1%	—	-1.0pp
Net Margin	17.2%	—	18.4%	—	-1.2pp
EPS (Diluted)	$1.65	—	$1.88	—	-12.2%
Free Cash Flow	$84M	—	$104M	—	-19.4%

Revenue Flow

Item	Amount
REVENUE	$479M
Cost of Revenue	$129M
GROSS PROFIT	$350M
R&D Expenses	$38M
Selling & Marketing	$72M
General & Administrative	$83M
SG&A Expenses	$155M
Other Expenses	$32M
Operating Expenses	$226M
Cost & Expenses	$354M
OPERATING INCOME	$125M
Interest Income	$3M
Interest Expense	$348.0K
Other Income/Expenses	$4M
INCOME BEFORE TAX	$129M
Income Tax Expense	$47M
Net Income from Continuing Ops	$81M
Net Income from Discontinued Ops	$0
Other Adjustments	$838.0K
NET INCOME	$82M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$82M
D&A	$32M
EBIT	$128M
EBITDA	$160M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$479M
Cost of Revenue	$129M
GROSS PROFIT	$350M
R&D Expenses	$38M
Selling & Marketing	$72M
General & Administrative	$83M
SG&A Expenses	$155M
Other Expenses	$32M
Operating Expenses	$226M
Cost & Expenses	$354M
OPERATING INCOME	$125M
Interest Income	$3M
Interest Expense	$348.0K
Other Income/Expenses	$4M
INCOME BEFORE TAX	$129M
Income Tax Expense	$47M
Net Income from Continuing Ops	$81M
Net Income from Discontinued Ops	$0
Other Adjustments	$838.0K
NET INCOME	$82M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$82M
D&A	$32M
EBIT	$128M
EBITDA	$160M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$82M
Depreciation & Amortization	$32M
Stock-Based Compensation	$12M
Deferred Income Tax	-$2M
Other Non-Cash Items	-$13M
Change in Working Capital	-$14M
OPERATING CASH FLOW	$96M
Capital Expenditure	-$12M
Acquisitions (Net)	-$74M
Purchases of Investments	-$177M
Sales/Maturities of Investments	$93M
Other Investing Activities	-$4M
NET CASH FROM INVESTING	-$175M
Net Debt Issuance	$0
Common Stock Repurchased	$0
Common Dividends Paid	$0
Other Financing Activities	$14M
NET CASH FROM FINANCING	$30M
FREE CASH FLOW	$84M
Net Change in Cash	-$43M

Balance Sheet

Item	Amount
Cash & Equivalents	$130M
Short-Term Investments	$212M
Net Receivables	$88M
Inventory	$0
Other Current Assets	$14M
TOTAL CURRENT ASSETS	$444M
PP&E (Net)	$60M
Goodwill	$250M
Intangible Assets	$135M
Long-Term Investments	$24M
Tax Assets	$1M
Other Non-Current Assets	$6M
TOTAL NON-CURRENT ASSETS	$475M
TOTAL ASSETS	$920M
Account Payables	$0
Short-Term Debt	$0
Deferred Revenue	$127M
Other Current Liabilities	$962.0K
TOTAL CURRENT LIABILITIES	$207M
Long-Term Debt	$0
Deferred Revenue NC	$0
Deferred Tax Liabilities	$5M
Other Non-Current Liabilities	$31M
TOTAL NON-CURRENT LIABILITIES	$36M
TOTAL LIABILITIES	$243M
Common Stock	$0
Additional Paid-In Capital	$428M
Retained Earnings	$240M
Treasury Stock	-$3M
Accum. Other Comp. Income	$33.0K
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$665M
Minority Interest	$1M
TOTAL EQUITY	$666M
TOTAL LIABILITIES & EQUITY	$920M
Total Debt	$0
Net Debt	-$130M