MORN FY 2019 Earnings Report — Morningstar, Inc. Revenue & Financial Results | Market Cap Arena

Morningstar, Inc.MORN

FY 2019 Earnings

Reported March 2, 2020

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2019	Prior Q	FY 2018	QoQ Change	YoY Change
Revenue	$1.2B	—	$1.0B	—	15.6%
Op. Income	$190M	—	$216M	—	-12.1%
Gross Margin	59.0%	—	59.7%	—	-0.7pp
Net Margin	12.9%	—	17.9%	—	-5.1pp
EPS (Diluted)	$3.52	—	$4.26	—	-17.4%
Free Cash Flow	$254M	—	$239M	—	6.6%

Revenue Flow

Item	Amount
REVENUE	$1.2B
Cost of Revenue	$483M
GROSS PROFIT	$696M
R&D Expenses	$0
Selling & Marketing	$178M
General & Administrative	$211M
SG&A Expenses	$389M
Other Expenses	$118M
Operating Expenses	$506M
Cost & Expenses	$989M
OPERATING INCOME	$190M
Interest Income	$2M
Interest Expense	$9M
Other Income/Expenses	$8M
INCOME BEFORE TAX	$198M
Income Tax Expense	$46M
Net Income from Continuing Ops	$152M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$152M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$152M
D&A	$118M
EBIT	$207M
EBITDA	$325M
EPS	$4
EPS Diluted	$4

Income Statement

Item	Amount
REVENUE	$1.2B
Cost of Revenue	$483M
GROSS PROFIT	$696M
R&D Expenses	$0
Selling & Marketing	$178M
General & Administrative	$211M
SG&A Expenses	$389M
Other Expenses	$118M
Operating Expenses	$506M
Cost & Expenses	$989M
OPERATING INCOME	$190M
Interest Income	$2M
Interest Expense	$9M
Other Income/Expenses	$8M
INCOME BEFORE TAX	$198M
Income Tax Expense	$46M
Net Income from Continuing Ops	$152M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$152M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$152M
D&A	$118M
EBIT	$207M
EBITDA	$325M
EPS	$4
EPS Diluted	$4

Cash Flow Statement

Item	Amount
Net Income	$152M
Depreciation & Amortization	$118M
Stock-Based Compensation	$44M
Deferred Income Tax	-$6M
Other Non-Cash Items	-$15M
Change in Working Capital	$42M
OPERATING CASH FLOW	$334M
Capital Expenditure	-$80M
Acquisitions (Net)	-$664M
Purchases of Investments	-$38M
Sales/Maturities of Investments	$36M
Other Investing Activities	-$100.0K
NET CASH FROM INVESTING	-$746M
Net Debt Issuance	$444M
Common Stock Repurchased	-$5M
Common Dividends Paid	-$48M
Other Financing Activities	-$18M
NET CASH FROM FINANCING	$374M
FREE CASH FLOW	$254M
Net Change in Cash	-$35M

Balance Sheet

Item	Amount
Cash & Equivalents	$334M
Short-Term Investments	$33M
Net Receivables	$195M
Inventory	$0
Other Current Assets	$41M
TOTAL CURRENT ASSETS	$603M
PP&E (Net)	$300M
Goodwill	$1.0B
Intangible Assets	$333M
Long-Term Investments	$60M
Tax Assets	$11M
Other Non-Current Assets	$25M
TOTAL NON-CURRENT ASSETS	$1.8B
TOTAL ASSETS	$2.4B
Account Payables	$0
Short-Term Debt	$11M
Deferred Revenue	$250M
Other Current Liabilities	$199M
TOTAL CURRENT LIABILITIES	$496M
Long-Term Debt	$502M
Deferred Revenue NC	$32M
Deferred Tax Liabilities	$95M
Other Non-Current Liabilities	$24M
TOTAL NON-CURRENT LIABILITIES	$792M
TOTAL LIABILITIES	$1.3B
Common Stock	$0
Additional Paid-In Capital	$655M
Retained Earnings	$1.2B
Treasury Stock	-$729M
Accum. Other Comp. Income	-$61M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$1.1B
Minority Interest	$0
TOTAL EQUITY	$1.1B
TOTAL LIABILITIES & EQUITY	$2.4B
Total Debt	$688M
Net Debt	$354M