MORN FY 2018 Earnings Report — Morningstar, Inc. Revenue & Financial Results | Market Cap Arena

Morningstar, Inc.MORN

FY 2018 Earnings

Reported March 1, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2018	Prior Q	FY 2017	QoQ Change	YoY Change
Revenue	$1.0B	—	$912M	—	11.9%
Op. Income	$216M	—	$170M	—	27.1%
Gross Margin	59.7%	—	57.6%	—	2.1pp
Net Margin	17.9%	—	15.0%	—	2.9pp
EPS (Diluted)	$4.26	—	$3.18	—	34.0%
Free Cash Flow	$239M	—	$184M	—	30.1%

Revenue Flow

Item	Amount
REVENUE	$1.0B
Cost of Revenue	$411M
GROSS PROFIT	$609M
R&D Expenses	$0
Selling & Marketing	$149M
General & Administrative	$148M
SG&A Expenses	$296M
Other Expenses	$97M
Operating Expenses	$393M
Cost & Expenses	$804M
OPERATING INCOME	$216M
Interest Income	$2M
Interest Expense	$2M
Other Income/Expenses	$15M
INCOME BEFORE TAX	$231M
Income Tax Expense	$48M
Net Income from Continuing Ops	$183M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$183M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$183M
D&A	$97M
EBIT	$235M
EBITDA	$331M
EPS	$4
EPS Diluted	$4

Income Statement

Item	Amount
REVENUE	$1.0B
Cost of Revenue	$411M
GROSS PROFIT	$609M
R&D Expenses	$0
Selling & Marketing	$149M
General & Administrative	$148M
SG&A Expenses	$296M
Other Expenses	$97M
Operating Expenses	$393M
Cost & Expenses	$804M
OPERATING INCOME	$216M
Interest Income	$2M
Interest Expense	$2M
Other Income/Expenses	$15M
INCOME BEFORE TAX	$231M
Income Tax Expense	$48M
Net Income from Continuing Ops	$183M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$183M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$183M
D&A	$97M
EBIT	$235M
EBITDA	$331M
EPS	$4
EPS Diluted	$4

Cash Flow Statement

Item	Amount
Net Income	$183M
Depreciation & Amortization	$97M
Stock-Based Compensation	$32M
Deferred Income Tax	-$1M
Other Non-Cash Items	-$14M
Change in Working Capital	$19M
OPERATING CASH FLOW	$315M
Capital Expenditure	-$76M
Acquisitions (Net)	$18M
Purchases of Investments	-$43M
Sales/Maturities of Investments	$51M
Other Investing Activities	$100.0K
NET CASH FROM INVESTING	-$50M
Net Debt Issuance	-$110M
Common Stock Repurchased	-$21M
Common Dividends Paid	-$43M
Other Financing Activities	-$15M
NET CASH FROM FINANCING	-$189M
FREE CASH FLOW	$239M
Net Change in Cash	$61M

Balance Sheet

Item	Amount
Cash & Equivalents	$369M
Short-Term Investments	$27M
Net Receivables	$174M
Inventory	$0
Other Current Assets	$32M
TOTAL CURRENT ASSETS	$602M
PP&E (Net)	$144M
Goodwill	$557M
Intangible Assets	$74M
Long-Term Investments	$63M
Tax Assets	$0
Other Non-Current Assets	$15M
TOTAL NON-CURRENT ASSETS	$852M
TOTAL ASSETS	$1.5B
Account Payables	$54M
Short-Term Debt	$0
Deferred Revenue	$196M
Other Current Liabilities	$113M
TOTAL CURRENT LIABILITIES	$363M
Long-Term Debt	$70M
Deferred Revenue NC	$14M
Deferred Tax Liabilities	$22M
Other Non-Current Liabilities	$50M
TOTAL NON-CURRENT LIABILITIES	$156M
TOTAL LIABILITIES	$519M
Common Stock	$0
Additional Paid-In Capital	$622M
Retained Earnings	$1.1B
Treasury Stock	-$727M
Accum. Other Comp. Income	-$75M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$935M
Minority Interest	$0
TOTAL EQUITY	$935M
TOTAL LIABILITIES & EQUITY	$1.5B
Total Debt	$70M
Net Debt	-$299M