MORN FY 2015 Earnings Report — Morningstar, Inc. Revenue & Financial Results | Market Cap Arena

Morningstar, Inc.MORN

FY 2015 Earnings

Reported February 26, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2015	Prior Q	FY 2014	QoQ Change	YoY Change
Revenue	$789M	—	$760M	—	3.8%
Op. Income	$191M	—	$106M	—	80.5%
Gross Margin	58.2%	—	58.1%	—	0.1pp
Net Margin	16.8%	—	10.3%	—	6.5pp
EPS (Diluted)	$3.00	—	$1.74	—	72.4%
Free Cash Flow	$184M	—	$74M	—	149.3%

Revenue Flow

Item	Amount
REVENUE	$789M
Cost of Revenue	$330M
GROSS PROFIT	$459M
R&D Expenses	$0
Selling & Marketing	$97M
General & Administrative	$107M
SG&A Expenses	$204M
Other Expenses	$64M
Operating Expenses	$268M
Cost & Expenses	$598M
OPERATING INCOME	$191M
Interest Income	$2M
Interest Expense	$500.0K
Other Income/Expenses	$5M
INCOME BEFORE TAX	$196M
Income Tax Expense	$63M
Net Income from Continuing Ops	$133M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$133M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$133M
D&A	$64M
EBIT	$194M
EBITDA	$259M
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$789M
Cost of Revenue	$330M
GROSS PROFIT	$459M
R&D Expenses	$0
Selling & Marketing	$97M
General & Administrative	$107M
SG&A Expenses	$204M
Other Expenses	$64M
Operating Expenses	$268M
Cost & Expenses	$598M
OPERATING INCOME	$191M
Interest Income	$2M
Interest Expense	$500.0K
Other Income/Expenses	$5M
INCOME BEFORE TAX	$196M
Income Tax Expense	$63M
Net Income from Continuing Ops	$133M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$133M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$133M
D&A	$64M
EBIT	$194M
EBITDA	$259M
EPS	$3
EPS Diluted	$3

Cash Flow Statement

Item	Amount
Net Income	$133M
Depreciation & Amortization	$64M
Stock-Based Compensation	$17M
Deferred Income Tax	$3M
Other Non-Cash Items	-$2M
Change in Working Capital	$26M
OPERATING CASH FLOW	$242M
Capital Expenditure	-$57M
Acquisitions (Net)	-$11M
Purchases of Investments	-$41M
Sales/Maturities of Investments	$30M
Other Investing Activities	-$200.0K
NET CASH FROM INVESTING	-$80M
Net Debt Issuance	$5M
Common Stock Repurchased	-$97M
Common Dividends Paid	-$34M
Other Financing Activities	-$2M
NET CASH FROM FINANCING	-$128M
FREE CASH FLOW	$184M
Net Change in Cash	$22M

Balance Sheet

Item	Amount
Cash & Equivalents	$207M
Short-Term Investments	$42M
Net Receivables	$139M
Inventory	$0
Other Current Assets	$22M
TOTAL CURRENT ASSETS	$410M
PP&E (Net)	$135M
Goodwill	$364M
Intangible Assets	$74M
Long-Term Investments	$36M
Tax Assets	$0
Other Non-Current Assets	$11M
TOTAL NON-CURRENT ASSETS	$619M
TOTAL ASSETS	$1.0B
Account Payables	$39M
Short-Term Debt	$35M
Deferred Revenue	$141M
Other Current Liabilities	$90M
TOTAL CURRENT LIABILITIES	$304M
Long-Term Debt	$0
Deferred Revenue NC	$0
Deferred Tax Liabilities	$20M
Other Non-Current Liabilities	$64M
TOTAL NON-CURRENT LIABILITIES	$84M
TOTAL LIABILITIES	$388M
Common Stock	$0
Additional Paid-In Capital	$576M
Retained Earnings	$739M
Treasury Stock	-$620M
Accum. Other Comp. Income	-$55M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$640M
Minority Interest	$300.0K
TOTAL EQUITY	$641M
TOTAL LIABILITIES & EQUITY	$1.0B
Total Debt	$35M
Net Debt	-$172M