MORN FY 2010 Earnings Report — Morningstar, Inc. Revenue & Financial Results | Market Cap Arena

Morningstar, Inc.MORN

FY 2010 Earnings

Reported February 28, 2011

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2010	Prior Q	FY 2009	QoQ Change	YoY Change
Revenue	$555M	—	$479M	—	15.9%
Op. Income	$121M	—	$125M	—	-2.9%
Gross Margin	71.7%	—	73.1%	—	-1.4pp
Net Margin	15.6%	—	17.2%	—	-1.7pp
EPS (Diluted)	$1.70	—	$1.65	—	3.0%
Free Cash Flow	$109M	—	$84M	—	29.9%

Revenue Flow

Item	Amount
REVENUE	$555M
Cost of Revenue	$157M
GROSS PROFIT	$398M
R&D Expenses	$49M
Selling & Marketing	$95M
General & Administrative	$93M
SG&A Expenses	$188M
Other Expenses	$40M
Operating Expenses	$277M
Cost & Expenses	$434M
OPERATING INCOME	$121M
Interest Income	$3M
Interest Expense	$281.0K
Other Income/Expenses	$8M
INCOME BEFORE TAX	$129M
Income Tax Expense	$43M
Net Income from Continuing Ops	$86M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$86M
Net Income Deductions	-$9.0K
BOTTOM LINE NET INCOME	$86M
D&A	$40M
EBIT	$128M
EBITDA	$168M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$555M
Cost of Revenue	$157M
GROSS PROFIT	$398M
R&D Expenses	$49M
Selling & Marketing	$95M
General & Administrative	$93M
SG&A Expenses	$188M
Other Expenses	$40M
Operating Expenses	$277M
Cost & Expenses	$434M
OPERATING INCOME	$121M
Interest Income	$3M
Interest Expense	$281.0K
Other Income/Expenses	$8M
INCOME BEFORE TAX	$129M
Income Tax Expense	$43M
Net Income from Continuing Ops	$86M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$86M
Net Income Deductions	-$9.0K
BOTTOM LINE NET INCOME	$86M
D&A	$40M
EBIT	$128M
EBITDA	$168M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$86M
Depreciation & Amortization	$40M
Stock-Based Compensation	$14M
Deferred Income Tax	$211.0K
Other Non-Cash Items	-$13M
Change in Working Capital	-$4M
OPERATING CASH FLOW	$124M
Capital Expenditure	-$15M
Acquisitions (Net)	-$102M
Purchases of Investments	-$186M
Sales/Maturities of Investments	$215M
Other Investing Activities	$500.0K
NET CASH FROM INVESTING	-$88M
Net Debt Issuance	$0
Common Stock Repurchased	-$4M
Common Dividends Paid	$0
Other Financing Activities	$16M
NET CASH FROM FINANCING	$12M
FREE CASH FLOW	$109M
Net Change in Cash	$50M

Balance Sheet

Item	Amount
Cash & Equivalents	$180M
Short-Term Investments	$185M
Net Receivables	$121M
Inventory	$0
Other Current Assets	$21M
TOTAL CURRENT ASSETS	$507M
PP&E (Net)	$62M
Goodwill	$318M
Intangible Assets	$169M
Long-Term Investments	$24M
Tax Assets	$3M
Other Non-Current Assets	$6M
TOTAL NON-CURRENT ASSETS	$579M
TOTAL ASSETS	$1.1B
Account Payables	$0
Short-Term Debt	$0
Deferred Revenue	$146M
Other Current Liabilities	$1M
TOTAL CURRENT LIABILITIES	$253M
Long-Term Debt	$0
Deferred Revenue NC	$0
Deferred Tax Liabilities	$20M
Other Non-Current Liabilities	$32M
TOTAL NON-CURRENT LIABILITIES	$52M
TOTAL LIABILITIES	$305M
Common Stock	$0
Additional Paid-In Capital	$458M
Retained Earnings	$323M
Treasury Stock	-$7M
Accum. Other Comp. Income	$5M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$780M
Minority Interest	$1M
TOTAL EQUITY	$781M
TOTAL LIABILITIES & EQUITY	$1.1B
Total Debt	$0
Net Debt	-$180M