MORN FY 2020 Earnings Report — Morningstar, Inc. Revenue & Financial Results | Market Cap Arena

Morningstar, Inc.MORN

FY 2020 Earnings

Reported February 26, 2021

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2020	Prior Q	FY 2019	QoQ Change	YoY Change
Revenue	$1.4B	—	$1.2B	—	17.9%
Op. Income	$215M	—	$190M	—	13.5%
Gross Margin	60.0%	—	59.0%	—	0.9pp
Net Margin	16.1%	—	12.9%	—	3.2pp
EPS (Diluted)	$5.18	—	$3.52	—	47.2%
Free Cash Flow	$308M	—	$254M	—	20.9%

Revenue Flow

Item	Amount
REVENUE	$1.4B
Cost of Revenue	$556M
GROSS PROFIT	$833M
R&D Expenses	$0
Selling & Marketing	$206M
General & Administrative	$272M
SG&A Expenses	$478M
Other Expenses	$140M
Operating Expenses	$618M
Cost & Expenses	$1.2B
OPERATING INCOME	$215M
Interest Income	$2M
Interest Expense	$11M
Other Income/Expenses	$68M
INCOME BEFORE TAX	$283M
Income Tax Expense	$60M
Net Income from Continuing Ops	$224M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$224M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$224M
D&A	$140M
EBIT	$294M
EBITDA	$434M
EPS	$5
EPS Diluted	$5

Income Statement

Item	Amount
REVENUE	$1.4B
Cost of Revenue	$556M
GROSS PROFIT	$833M
R&D Expenses	$0
Selling & Marketing	$206M
General & Administrative	$272M
SG&A Expenses	$478M
Other Expenses	$140M
Operating Expenses	$618M
Cost & Expenses	$1.2B
OPERATING INCOME	$215M
Interest Income	$2M
Interest Expense	$11M
Other Income/Expenses	$68M
INCOME BEFORE TAX	$283M
Income Tax Expense	$60M
Net Income from Continuing Ops	$224M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$224M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$224M
D&A	$140M
EBIT	$294M
EBITDA	$434M
EPS	$5
EPS Diluted	$5

Cash Flow Statement

Item	Amount
Net Income	$224M
Depreciation & Amortization	$140M
Stock-Based Compensation	$37M
Deferred Income Tax	-$7M
Other Non-Cash Items	-$48M
Change in Working Capital	$39M
OPERATING CASH FLOW	$384M
Capital Expenditure	-$77M
Acquisitions (Net)	-$39M
Purchases of Investments	-$56M
Sales/Maturities of Investments	$47M
Other Investing Activities	$2M
NET CASH FROM INVESTING	-$124M
Net Debt Issuance	-$63M
Common Stock Repurchased	-$42M
Common Dividends Paid	-$51M
Other Financing Activities	-$26M
NET CASH FROM FINANCING	-$182M
FREE CASH FLOW	$308M
Net Change in Cash	$88M

Balance Sheet

Item	Amount
Cash & Equivalents	$423M
Short-Term Investments	$42M
Net Receivables	$207M
Inventory	$0
Other Current Assets	$27M
TOTAL CURRENT ASSETS	$730M
PP&E (Net)	$303M
Goodwill	$1.2B
Intangible Assets	$380M
Long-Term Investments	$33M
Tax Assets	$13M
Other Non-Current Assets	$33M
TOTAL NON-CURRENT ASSETS	$2.0B
TOTAL ASSETS	$2.7B
Account Payables	$0
Short-Term Debt	$0
Deferred Revenue	$307M
Other Current Liabilities	$280M
TOTAL CURRENT LIABILITIES	$627M
Long-Term Debt	$449M
Deferred Revenue NC	$34M
Deferred Tax Liabilities	$109M
Other Non-Current Liabilities	$69M
TOTAL NON-CURRENT LIABILITIES	$798M
TOTAL LIABILITIES	$1.4B
Common Stock	$0
Additional Paid-In Capital	$671M
Retained Earnings	$1.4B
Treasury Stock	-$767M
Accum. Other Comp. Income	-$22M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$1.3B
Minority Interest	$0
TOTAL EQUITY	$1.3B
TOTAL LIABILITIES & EQUITY	$2.7B
Total Debt	$627M
Net Debt	$204M