Production expense included fees paid to sub-advisors relating to the Morningstar Funds Trust and higher cloud-based computing costs. Diluted net income per share declined 17.2% to $3.52 versus $4.25 in 2018, which included the $0.18 per share dilutive impact of DBRS Morningstar. The contribution of DBRS Morningstar was $46.2 million, or 17.1 percentage points in the quarter, and the remainder of Morningstar contributed $23.5 million, or 9.4 percentage points to revenue growth. ... 2019. We exclude revenue from acquired businesses from our organic revenue growth calculation for a period of 12 months after we complete the acquisition. consolidated revenue, excluding acquisitions, divestitures, adoption of accounting changes, and the effect of foreign currency translations (organic revenue). For the year ended December 31, 2019, Morningstar Data, Morningstar Direct, and Morningstar Investment Management increased revenue by 8.4%, 9.5%, and 5.7%, respectively, … (4) Transaction-based revenue includes DBRS Morningstar, Internet advertising sales, and conferences. In the fourth quarter of 2019, DBRS Morningstar communicated additional analytical model and methodology decisions and co-located the analyst teams under consolidated management, where possible. Operating expense increased 37.2% to $292.7 million in the fourth quarter of 2019. Read the annual report 2019 In the main portfolio, LD Discretionary, which accounts for more than 90 % of the assets, the members obtained a return of 8.5 %. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, and often contain words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "prospects," or "continue." Operating loss for the first six months of 2019 includes operating loss from Morningstar Credit Ratings while operating loss for the third and fourth quarters of 2019 includes operating loss from DBRS Morningstar, the newly combined credit ratings operations. Reconciliation from consolidated operating income to operating income excluding DBRS Morningstar and the license amendment: Add: DBRS Morningstar operating loss (income) including deal-related expenses and amortization (2), Operating income excluding DBRS Morningstar, Operating income excluding DBRS Morningstar and the license amendment. cash provided by or used for operating activities less capital expenditures (free cash flow). Please see the Appendix for information about the data in this report or contact Michael Laske at firstname.lastname@example.org. Operating expenses for the remainder of Morningstar increased 16.6% as the Company continued to invest in growth across the business. Annual Report 2019 Form 10-K (NASDAQ:MORN) Published: March 1st, 2019 PDF generated by stocklight.com . Excluding these items in both 2018 and 2019, net income per diluted share declined by 15.8% in 2019. In 2019, Morningstar Data increased revenue 8.4% year over year in constant currency as we continued to add new data sets to our offerings, particularly in ESG, fixed-income analytics, and health savings … Follow Morningstar on Twitter @MorningstarInc. The contribution of DBRS Morningstar was $46.2 million, or 17.1 percentage points in the quarter, and the remainder of Morningstar contributed $23.5 million, or 9.4 percentage points to revenue growth. If any of these risks and uncertainties materialize, our actual future results may vary significantly from what we expected. The effective tax rate for the full year 2019 was 23.1%, as compared with 20.7% for the full year 2018. here is much to be thankful for in 2019. DBRS Morningstar … Morningstar Investment Management revenue increased 12.1% as the gross revenue contribution from the Morningstar Funds Trust largely offset ongoing fee compression resulting from a shift in the asset mix to lower-fee strategies. DBRS Morningstar results would have been accretive by $0.22 per diluted share, excluding deal-related expenses and amortization. Transaction-based revenue more than tripled year over year, driven by the contribution of DBRS Morningstar. My goals are aligned with yours. Ratings. Fourth-quarter 2019 results also reflect the contribution of the Morningstar Funds Trust, which records revenue and sub-advisory fees on a gross basis. The contribution of DBRS Morningstar was $91.3 million, or 8.7 percentage points of revenue growth for the full year. Overall, long-term global flows (excluding money-market funds) nearly doubled in 2019 to $1 trillion. We have endured and thrived because we never lost sight of our purpose: to . Operating income decreased 19.5% to $39.7 million; adjusted operating income, which excludes all merger and acquisition (M&A)-related expenses and amortization, increased by 5.3%. Morningstar presents certain non-GAAP measures to show the effect of the DBRS acquisition and deal-related amortization and integration expenses, better reflect period-over-period comparisons, and improve overall understanding of the underlying performance of the business absent the impact of the combined DBRS Morningstar operations. Born as a modest, door-to-door business . Investor Relations Contact:Barbara Noverini, CFA +1 312-646-6164, [email protected], Media Relations Contact:Stephanie Lerdall, +1 312-244-7805, [email protected], ©2020 Morningstar, Inc. All Rights Reserved.MORN-E, Unaudited Condensed Consolidated Statements of Income, Income before income taxes and equity in net income (loss) of unconsolidated entities, Equity in net income (loss) of unconsolidated entities, _________________________________________________________________, NMF - Not meaningful, pp - percentage points, Unaudited Condensed Consolidated Statements of Cash Flows, Adjustments to reconcile consolidated net income to net cash flows from operating activities, Changes in operating assets and liabilities, net, Cash (used for) provided by financing activities, Effect of exchange rate changes on cash and cash equivalents, Net increase (decrease) in cash and cash equivalents, Cash and cash equivalents-beginning of period, Unaudited Condensed Consolidated Balance Sheets, Property, equipment, and capitalized software, net, Morningstar.com Premium Membership subscriptions (U.S.), Assets under management and advisement (approximate) ($bil), Asset value linked to Morningstar Indexes ($bil), Average assets under management and advisement ($bil), _____________________________________________________________________________. The 14th Annual 1 Prior-period results have been adjusted to conform to this presentation. Net income was $152.0 million, or $3.52 per diluted share, compared with $183.0 million, or $4.25 per diluted share for the year ended Dec. 31, 2018. Workplace Solutions revenue grew by 4.7% year over year. Balance Sheet and Capital AllocationAs of Dec. 31, 2019, the Company had cash, cash equivalents, and investments totaling $367.5 million and $502.1 million of long-term debt, compared with cash, cash equivalents, and investments of $395.9 million and $70.0 million of long-term debt as of Dec. 31, 2018. PDF; Form 10K (HTML) Morningstar Inc. does not currently have any hardcopy reports on AnnualReports.com. Morningstar provides investment research for stocks, funds, ETF's, credit, and LIC's as well as financial data, news, and investing articles and videos. CHICAGO, Feb. 20, 2020 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today announced fourth-quarter and full-year 2019 financial results driven by strong revenue growth and cash flow. Higher sales commissions reflected strong company-wide selling activity in the fourth quarter. Measuring Transition Risk in Fund Portfolios White Paper, Integrating ESG Into Morningstar's Equity Research, Integrating ESG Into Morningstar Equity Research: FAQs, The Morningstar Capital Allocation Rating, Introducing the Morningstar Capital Allocation Rating: FAQs, The Morningstar ESG Commitment Level: Our first assessment of 100-plus strategies and 40 asset managers, Morningstar, Inc. Reports Fourth-Quarter, Full-Year 2019 Financial Results, Add: DBRS Morningstar operating loss (income) including deal-related expenses and amortization, http://www.prnewswire.com/news-releases/morningstar-inc-reports-fourth-quarter-full-year-2019-financial-results-301008779.html, Measuring Transition Risk in Fund Portfolios White Paper. View original content to download multimedia:http://www.prnewswire.com/news-releases/morningstar-inc-reports-fourth-quarter-full-year-2019-financial-results-301008779.html, One Sheet
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to This resulted in a $1.1 million increase in full-year operating income. DBRS Morningstar operating loss (income) including deal-related expenses and amortization included $8.5 million and $3.4 million of amortization and deal-related expenses, respectively, during the three months ended December 31, 2019 and $17.1 million and $6.5 million of amortization and deal-related expenses, respectively, for the year ended December 31, 2019. CHICAGO, Feb. 11, 2020 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today published its eighth annual Global Fund Flows Report examining worldwide 2019 mutual fund and exchange-traded product (ETP) fund flows. In the U.S., the organization continued to make meaningful progress across all integration activities with a key focus on integrating analytical teams, rating processes, and methodologies in Structured Finance, where the two entities had the most overlap. The license amendment negatively impacted operating and adjusted operating income growth by 4.5%. During the fourth quarter of 2019, the Company repaid $32.8 million of the outstanding balance on its new senior credit facility, for a total of $95.6 million of debt repayment since the close of the DBRS acquisition. Due to higher healthcare costs compared with the prior-year period forward-looking statements as term! 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