MORN FY 2017 Earnings Report — Morningstar, Inc. Revenue & Financial Results | Market Cap Arena

Morningstar, Inc.MORN

FY 2017 Earnings

Reported March 1, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2017	Prior Q	FY 2016	QoQ Change	YoY Change
Revenue	$912M	—	$799M	—	14.2%
Op. Income	$170M	—	$181M	—	-6.1%
Gross Margin	57.6%	—	56.9%	—	0.7pp
Net Margin	15.0%	—	20.2%	—	-5.1pp
EPS (Diluted)	$3.18	—	$3.72	—	-14.5%
Free Cash Flow	$184M	—	$151M	—	21.6%

Revenue Flow

Item	Amount
REVENUE	$912M
Cost of Revenue	$387M
GROSS PROFIT	$525M
R&D Expenses	$0
Selling & Marketing	$134M
General & Administrative	$130M
SG&A Expenses	$264M
Other Expenses	$91M
Operating Expenses	$355M
Cost & Expenses	$742M
OPERATING INCOME	$170M
Interest Income	$2M
Interest Expense	$6M
Other Income/Expenses	$10M
INCOME BEFORE TAX	$180M
Income Tax Expense	$43M
Net Income from Continuing Ops	$137M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$137M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$137M
D&A	$91M
EBIT	$170M
EBITDA	$261M
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$912M
Cost of Revenue	$387M
GROSS PROFIT	$525M
R&D Expenses	$0
Selling & Marketing	$134M
General & Administrative	$130M
SG&A Expenses	$264M
Other Expenses	$91M
Operating Expenses	$355M
Cost & Expenses	$742M
OPERATING INCOME	$170M
Interest Income	$2M
Interest Expense	$6M
Other Income/Expenses	$10M
INCOME BEFORE TAX	$180M
Income Tax Expense	$43M
Net Income from Continuing Ops	$137M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$137M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$137M
D&A	$91M
EBIT	$170M
EBITDA	$261M
EPS	$3
EPS Diluted	$3

Cash Flow Statement

Item	Amount
Net Income	$137M
Depreciation & Amortization	$91M
Stock-Based Compensation	$24M
Deferred Income Tax	-$14M
Other Non-Cash Items	-$11M
Change in Working Capital	$23M
OPERATING CASH FLOW	$250M
Capital Expenditure	-$67M
Acquisitions (Net)	$23M
Purchases of Investments	-$60M
Sales/Maturities of Investments	$42M
Other Investing Activities	$600.0K
NET CASH FROM INVESTING	-$61M
Net Debt Issuance	-$70M
Common Stock Repurchased	-$42M
Common Dividends Paid	-$39M
Other Financing Activities	-$6M
NET CASH FROM FINANCING	-$158M
FREE CASH FLOW	$184M
Net Change in Cash	$49M

Balance Sheet

Item	Amount
Cash & Equivalents	$308M
Short-Term Investments	$45M
Net Receivables	$148M
Inventory	$0
Other Current Assets	$28M
TOTAL CURRENT ASSETS	$530M
PP&E (Net)	$147M
Goodwill	$565M
Intangible Assets	$95M
Long-Term Investments	$62M
Tax Assets	$0
Other Non-Current Assets	$6M
TOTAL NON-CURRENT ASSETS	$876M
TOTAL ASSETS	$1.4B
Account Payables	$49M
Short-Term Debt	$0
Deferred Revenue	$171M
Other Current Liabilities	$103M
TOTAL CURRENT LIABILITIES	$323M
Long-Term Debt	$180M
Deferred Revenue NC	$14M
Deferred Tax Liabilities	$24M
Other Non-Current Liabilities	$60M
TOTAL NON-CURRENT LIABILITIES	$278M
TOTAL LIABILITIES	$601M
Common Stock	$0
Additional Paid-In Capital	$601M
Retained Earnings	$959M
Treasury Stock	-$708M
Accum. Other Comp. Income	-$47M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$805M
Minority Interest	$0
TOTAL EQUITY	$805M
TOTAL LIABILITIES & EQUITY	$1.4B
Total Debt	$180M
Net Debt	-$128M