Market Overview

Verisk Reports Third-Quarter 2019 Financial Results

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JERSEY CITY, N.J., Oct. 29, 2019 (GLOBE NEWSWIRE) -- Verisk (NASDAQ:VRSK), a leading data analytics provider, today announced results for the quarter ended September 30, 2019.

•         Consolidated revenue was $653 million for the third quarter of 2019, up 9.0%, and up 7.6% on an organic constant currency (OCC) basis.

•      Net income was $33 million for the third quarter of 2019, down 80.2%. Adjusted EBITDA, a non-GAAP measure, was $309 million, up 9.0%, and up 7.7% on an OCC basis.

•      Diluted earnings per share (diluted EPS) were $0.20 for the third quarter of 2019; diluted adjusted earnings per share (adjusted EPS), a non-GAAP measure, were $1.12.

•      The Company has recorded a $125 million reserve for litigation associated with our remote imagery business.

•      Net cash provided by operating activities was $214 million for the third quarter of 2019, down 5.7%. Free cash flow, a non-GAAP measure, was $153 million, down 10.8%.

•      The company paid a cash dividend of 25 cents per share on September 30, 2019. The company's Board of Directors approved a cash dividend of 25 cents per share payable on December 31, 2019.

•      The Company repurchased $75 million of its shares for the quarter ended September 30, 2019.

Scott Stephenson, chairman, president, and CEO, said, "I'm pleased to report that Verisk delivered strong revenue and EBITDA growth in the third quarter driven by continued strength in our Insurance segment and solid improvement in Energy and Specialized Markets. We're strongly positioned to continue to deliver on our strategies to drive long-term shareholder value as we focus on serving our customers while investing in market-leading innovation and in our people."

Lee Shavel, CFO and executive vice president, said, "Verisk delivered organic constant currency revenue growth of 7.6% and organic constant currency adjusted EBITDA growth of 7.7% while continuing to invest in our business. We continue to manage our capital prudently, and in the quarter, we demonstrated our ability to fund internal investment and make selective strategic acquisitions while also returning cash to shareholders."

Summary of Results (GAAP and Non-GAAP)
(in millions, except per share amounts)
Note: Adjusted EBITDA, diluted adjusted EPS, and free cash flow are non-GAAP measures.

  Three Months Ended       Nine Months Ended    
  September 30,       September 30,    
  2019   2018   Change   2019   2018   Change
Revenues $ 652.7     $ 598.7     9.0 %   $ 1,930.3     $ 1,781.2     8.4 %
                               
Net income   32.9       166.0     (80.2 )     317.7       452.5     (29.8 )
Adjusted EBITDA   309.3       283.8     9.0       905.3       841.1     7.6  
                               
Diluted EPS   0.20       0.99     (79.8 )     1.91       2.68     (28.7 )
Diluted adjusted EPS   1.12       1.08     3.7       3.24       3.07     5.5  
                               
Net cash provided by operating activities   213.6       226.6     (5.7 )     779.9       761.0     2.5  
Free cash flow   152.9       171.4     (10.8 )     627.1       606.5     3.4  

Revenue

Consolidated revenue increased 9.0% for the third quarter of 2019 and increased 7.6% on an OCC basis.

Revenues and Revenue Growth by Segment
(in millions)

              Revenue Growth
  Three Months Ended   Three Months Ended
  September 30,   September 30, 2019
  2019   2018   Reported   OCC
Underwriting & rating $ 310.3     $ 285.1     8.8 %   7.9 %
Claims   156.5       142.6     9.8     7.4  
Insurance   466.8       427.7     9.2     7.7  
Energy and Specialized Markets   142.5       127.7     11.6     8.7  
Financial Services   43.4       43.3     0.1     2.7  
Revenues $ 652.7     $ 598.7  
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