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MSCI · Msci

50 filings

10-Q

MSCI 10-Q Quarterly Reports

Msci - 50 quarterly reports

Filing record · 2016–202610-K1110-Q338-K133

MSCI filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 133 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Material agreement8-K · Nov ’19Nov ’19
  3. Leadership change8-K · Jan ’22Jan ’22
  4. Leadership change8-K · Nov ’25Nov ’25
  1. 2026-Q3

    Msci Quarterly Report for Q3 Ended Sep 30, 2026

    MSCI Inc. reported third-quarter 2026 operating revenues of $892.0 million, up from $793.4 million a year earlier, and net income of $351.0 million versus $325.3 million. For the nine months ended September 30, 2026, operating revenues were $2,609.8 million and net income was $1,099.0 million, which includes an $88.0 million discrete tax benefit from an internal legal entity restructuring in the first quarter. Diluted EPS was $4.86 for the quarter and $15.09 for the nine months. Asset-based fees drove much of the growth, with Index asset-based fees up 24.9% for the quarter, and total Run Rate reached $3,571.9 million, up 12.1%. Adjusted EBITDA was $554.8 million for the quarter, up from $494.4 million, and $1,598.0 million for the nine months, up from $1,394.4 million. Interest expense rose to $74.8 million in the quarter from $53.6 million, reflecting higher debt levels. Total debt was $6,760.0 million principal at September 30, 2026, including $810.0 million of revolving loans, and the Consolidated Leverage Ratio was 2.90:1.00 against a maximum of 4.25:1.00. Shareholders' equity was a deficit of $3,016.4 million, reflecting cumulative share repurchases and dividends. During the nine months, the company repurchased $1,135.8 million of common stock and paid $447.8 million in dividends, and $1.0 billion remained under its 2025 repurchase authorization. During 2026 the company completed four acquisitions, including First Street Technology, Inc. on August 3, 2026, for a purchase price of $122.6 million net of cash acquired plus up to $130.0 million of contingent payments. The Board declared a quarterly dividend of $2.05 per share on October 19, 2026, payable November 27, 2026.

    Oct 20, 2026
  2. 2026-Q2

    Msci Quarterly Report for Q2 Ended Jun 30, 2026

    MSCI Inc. reported a strong second quarter of 2026, with operating revenues of $867.0 million for the three months ended June 30, 2026, up 12.2% from $772.7 million a year earlier, and $1,717.8 million for the six months, up 13.1%. Operating income rose to $487.5 million for the quarter and net income to $342.0 million, up 12.6%. Diluted EPS was $4.69 versus $3.92. Growth was led by the Index segment, where operating revenues rose 17.5% for the quarter and asset-based fees rose 26.6%, driven by higher average AUM in ETFs linked to MSCI equity indexes. Total Run Rate reached $3,479.7 million, up 12.0%, and the consolidated Retention Rate was 95.3%. Profitability was affected by higher interest expense, which rose to $71.0 million for the quarter from $46.2 million as total debt increased to $6,425.0 million principal. Income tax expense for the six months was low at a 7.3% effective rate, reflecting an $88.0 million discrete tax benefit from an internal legal entity restructuring completed in the first quarter of 2026. Cost growth was concentrated in non-compensation expenses, which rose 23.5% for the quarter, and general and administrative expenses, which rose 20.6%. Capital allocation remained active. The company repurchased $544.3 million of shares in the first half, paid $300.0 million in dividends, and had $1.6 billion of authorization remaining under its 2025 repurchase program. It completed three acquisitions in the first half (Vantager, Compass and PM Insights) and agreed on June 24, 2026 to acquire First Street Technology for $120.0 million in cash at closing, expected to close in the third quarter of 2026. The Board declared a $2.05 quarterly dividend on July 20, 2026.

    Jul 21, 2026
  3. 2026-Q1

    Msci Quarterly Report for Q1 Ended Mar 31, 2026

    MSCI Inc. reported first-quarter 2026 operating revenues of $850.8 million, up from $745.8 million in the prior-year period, with net income of $406.0 million versus $288.6 million. Diluted EPS was $5.53 compared with $3.71. Results were helped by an $88.0 million discrete tax benefit tied to completion of an internal legal entity restructuring, which drove the effective tax rate to (4.3)% from 12.8%. Operating income rose to $456.9 million from $377.0 million, and Adjusted EBITDA reached $504.7 million, a 59.3% Adjusted EBITDA margin. Total Run Rate grew 12.7% to $3.36 billion, with asset-based fees up 25.1%, and total net sales were $60.8 million. Balance sheet and capital allocation shifted notably during the quarter. Long-term debt rose to $6.40 billion from $6.20 billion, as the company borrowed $375.0 million and repaid $175.0 million. Interest expense increased to $69.1 million from $46.5 million, driven by higher debt levels. The company repurchased $403.1 million of common stock and declared a $2.05 per share quarterly dividend, and shareholders' equity remained in deficit at $(2,774.1) million. Cash and equivalents fell to $385.3 million from $515.3 million. The company closed the Vantager and Compass acquisitions for an aggregate purchase price of $71.4 million. Operating cash flow was $306.8 million, compared with $301.7 million a year earlier. Management stated that the company's Consolidated Leverage Ratio was 2.94:1.00 as of March 31, 2026, and that it had $1.7 billion of remaining repurchase authorization under the 2025 program.

    Apr 21, 2026
  4. 2025-Q3

    Msci Quarterly Report for Q3 Ended Sep 30, 2025

    MSCI Inc. reported third-quarter 2025 operating revenues of $793.4 million, up 9.5% from $724.7 million a year earlier, and net income of $325.4 million, up 15.8%. Diluted EPS was $4.25 versus $3.57. For the nine months, operating revenues were $2.31 billion (up 9.4%) and net income was $917.6 million (up 14.2%). Adjusted EBITDA for the quarter was $494.4 million, a 62.3% margin, and total Run Rate reached $3.19 billion, up 10.1%, with organic Run Rate growth of 9.7%. Balance sheet leverage increased during the period. Long-term debt rose to $5.51 billion from $4.51 billion at year-end 2024, following the August 2025 issuance of $1.25 billion of 5.25% senior notes due 2035 and an expanded $1.6 billion revolving credit facility. Shareholders' deficit widened to $(1.92) billion, reflecting $1.58 billion of nine-month share repurchases and $421.4 million of dividend payments. The company stated its Consolidated Leverage Ratio was 2.70:1.00 against a 4.25:1.00 covenant maximum. Subsequent to quarter-end, on October 25, 2025, the Board authorized a new $3.0 billion share repurchase program superseding the 2024 program, which had less than $0.1 billion remaining. The Board also declared a fourth-quarter 2025 dividend of $1.80 per share, payable November 28, 2025.

    Oct 28, 2025
  5. 2025-Q2

    Msci Quarterly Report for Q2 Ended Jun 30, 2025

    MSCI Inc. reported operating revenues of $772.7 million for the three months ended June 30, 2025, up 9.1% from $707.9 million a year earlier, and $1.52 billion for the six months, up 9.4%. Operating income rose to $425.2 million for the quarter and net income to $303.7 million, up 13.8%. Diluted EPS was $3.92 for the quarter versus $3.37 in the prior-year period. Growth was led by the Index segment, where asset-based fees rose 12.7% for the quarter, and total Run Rate reached $3.11 billion, up 10.7%, with organic Run Rate growth of 9.6%. The balance sheet shows total assets of $5.37 billion and a shareholders' deficit of $886.2 million, reflecting ongoing capital returns. Long-term debt was $4.51 billion, against $4.20 billion of senior notes and $337.0 million drawn on the revolving credit facility. Cash and cash equivalents declined to $347.3 million from $409.4 million at year-end 2024. Operating cash flow was $637.9 million for the six months. The company repurchased $351.6 million of stock and paid $283.5 million in dividends during the period, and remaining buyback authorization was $1.25 billion. Management cited higher compensation and benefits costs from increased headcount and severance, along with higher information technology costs, as drivers of expense growth. The Consolidated Leverage Ratio was 2.24:1.00 and the Consolidated Interest Coverage Ratio was 10.70:1.00 as of June 30, 2025. The company declared a $1.80 quarterly dividend and is evaluating the impact of H.R. 1, the One Big Beautiful Bill Act, signed July 4, 2025.

    Jul 22, 2025
  6. 2025-Q1

    Msci Quarterly Report for Q1 Ended Mar 31, 2025

    MSCI Inc. reported first-quarter 2025 operating revenues of $745.8 million, up 9.7% from $680.0 million in the prior-year quarter, with net income of $288.6 million (up 12.8%) and diluted EPS of $3.71 versus $3.22. Adjusted EBITDA rose to $425.6 million from $383.6 million, and the Adjusted EBITDA margin was 57.1% versus 56.4%. Growth was led by the Index segment, where operating revenues rose 12.8% to $421.7 million, supported by asset-based fees up 18.1%. Total Run Rate reached $2.98 billion, up 9.3%, and the Retention Rate improved to 95.3% from 92.8%. Cash flow from operations was $301.7 million, essentially flat with the prior year's $300.1 million. Share repurchases of $213.1 million and dividend payments of $143.8 million drove financing outflows, and cash and cash equivalents fell to $360.7 million at March 31, 2025 from $409.4 million at year-end 2024. Total debt was $4.57 billion principal, including $4.2 billion of senior notes and $371.9 million drawn on the revolving credit facility. The Consolidated Leverage Ratio was 2.30:1.00 and the Consolidated Interest Coverage Ratio was 10.45:1.00 at quarter-end. The Board declared a quarterly dividend of $1.80 per share payable May 30, 2025, and $1.38 billion remained available under the 2024 Repurchase Program. Shareholders' equity remained in deficit at $(958.6) million. BlackRock accounted for 10.3% of consolidated operating revenues.

    Apr 22, 2025
  7. 2024-Q3

    Msci Quarterly Report for Q3 Ended Sep 30, 2024

    MSCI Inc. reported third-quarter 2024 operating revenues of $724.7 million, up from $625.4 million a year earlier, and net income of $280.9 million versus $259.7 million. For the nine months ended September 30, 2024, operating revenues were $2.11 billion and net income was $803.6 million, with diluted EPS of $10.15 compared with $9.32. Growth was driven largely by the Burgiss acquisition, which moved the Private Capital Solutions business into the All Other – Private Assets segment, along with higher asset-based fees tied to ETFs linked to MSCI equity indexes. Total Run Rate reached $2.89 billion, up 17.3%, though the filing notes that adjusting for recent acquisitions and currency effects, recurring subscription Run Rate would have increased 8.0%. Profitability and cash generation remained solid. Adjusted EBITDA was $450.7 million for the quarter, a 16.7% increase, with an Adjusted EBITDA margin of 62.2%. Net cash provided by operating activities was $1.07 billion for the nine months. The company repurchased $440.3 million of shares during the nine months and paid $384.0 million in dividends. Total debt principal was $4.51 billion at quarter-end, including $4.2 billion of senior notes and $311.9 million drawn on the revolving credit facility. The filing states a Consolidated Leverage Ratio of 2.39:1.00 against a maximum of 4.25:1.00 and a Consolidated Interest Coverage Ratio of 9.79:1.00 against a minimum of 4.00:1.00. Subsequent to quarter-end, on October 28, 2024, the Board declared a $1.60 quarterly dividend and authorized an additional $1.5 billion repurchase program, which together with the $405.4 million remaining under the 2022 program forms a $1.9 billion total 2024 program. The company also reported that its goodwill in the Private Capital Solutions reporting unit ($617.8 million) had a fair value exceeding carrying value by approximately 10% as of July 1, 2024, making it vulnerable to future impairment.

    Oct 31, 2024
  8. 2024-Q2

    Msci Quarterly Report for Q2 Ended Jun 30, 2024

    MSCI Inc. reported operating revenues of $707.9 million for the three months ended June 30, 2024, up 14.0% from $621.2 million a year earlier, and $1,387.9 million for the six months, up 14.4%. Net income rose 8.1% to $266.8 million for the quarter and 7.7% to $522.7 million for the half-year. Diluted EPS was $3.37 for the quarter, compared with $3.09 in the prior-year quarter. Growth was driven by recurring subscriptions and asset-based fees, with the Burgiss acquisition (completed October 2, 2023) contributing $26.8 million of revenue in the quarter. Adjusted EBITDA was $430.0 million for the quarter, up 14.0%, with Adjusted EBITDA margin of 60.7%, flat year over year. Total Run Rate reached $2.81 billion at June 30, 2024, up 14.6% from a year earlier, and total net sales for the six months were $118.7 million, down 9.5%. Operating expenses grew 18.2% in the quarter, led by a 36.3% increase in R&D and a 55.9% increase in amortization of intangible assets, as headcount rose to 6,059 employees. Operating cash flow for the six months was $649.4 million, versus $555.9 million a year earlier. The company repurchased $241.5 million of stock in the first half and declared a $1.60 quarterly dividend, and it had $604.2 million of repurchase authorization remaining. Total debt was $4.51 billion carrying value, and the Consolidated Leverage Ratio was 2.49:1.00 against a covenant maximum of 4.25:1.00.

    Jul 23, 2024
  9. 2024-Q1

    Msci Quarterly Report for Q1 Ended Mar 31, 2024

    MSCI Inc. reported operating revenues of $679.97 million for the three months ended March 31, 2024, up from $592.22 million a year earlier, with net income of $255.95 million (diluted EPS of $3.22, versus $2.97). Operating income rose to $339.38 million from $314.60 million, though operating expenses grew 22.7%, driven by compensation costs, amortization of acquired intangibles and transaction and integration costs tied to the Burgiss step acquisition. Adjusted EBITDA was $383.57 million, up 11.3%, with Adjusted EBITDA margin of 56.4% compared with 58.2% a year earlier. Recurring subscriptions were $513.06 million, up 15.2%, and total Run Rate reached $2.73 billion, up 14.6%. Net new recurring subscription sales fell to $19.57 million from $34.64 million, and subscription cancellations rose to $37.77 million from $21.76 million, with total Retention Rate of 92.8% versus 95.2% a year earlier. The Index segment's Retention Rate was 93.2% compared with 96.4%. On the balance sheet, total assets were $5.48 billion and total long-term debt was $4.51 billion. The company drew $336.9 million on a new $1.25 billion revolving credit facility entered January 26, 2024, which was used to prepay the Tranche A Term Loans. Shareholders' equity was a deficit of $650.5 million. The Board declared a quarterly dividend of $1.60 per share payable May 31, 2024, and $845.7 million of repurchase authorization remained, with no open-market repurchases during the quarter.

    Apr 23, 2024
  10. 2023-Q3

    Msci Quarterly Report for Q3 Ended Sep 30, 2023

    MSCI Inc. reported third-quarter 2023 operating revenues of $625.4 million, up 11.6% from $560.6 million a year earlier, and nine-month operating revenues of $1.84 billion, up 10.0%. Net income rose 19.9% to $259.7 million for the quarter and 13.7% to $745.2 million for the nine months. Diluted EPS was $3.27 for the quarter versus $2.68 a year earlier, and $9.32 for the nine months versus $8.05. Recurring subscriptions drove growth, with the Index, Analytics and ESG and Climate segments all expanding, while Adjusted EBITDA rose 13.3% in the quarter to $386.3 million, with a margin of 61.8%. Cash flow and capital returns were significant in the period: net cash from operating activities was $847.1 million for the nine months, and the company paid $331.6 million in dividends and repurchased $504.2 million of stock in financing activities. Total debt principal was $4.54 billion at September 30, 2023, and shareholders' equity was a deficit of $1.05 billion. The company reported a Consolidated Leverage Ratio of 2.77:1.00 against a maximum of 4.25:1.00. A major subsequent event was the October 2, 2023 acquisition of the remaining 66.4% interest in The Burgiss Group for $696.8 million in cash. The company expects a non-taxable pre-tax gain of approximately $140 million on its previously held 33.6% stake, to be recorded in the fourth quarter, and the initial accounting for the business combination is incomplete. The board also declared a quarterly dividend of $1.38 per share payable November 30, 2023.

    Oct 31, 2023
  11. 2023-Q2

    Msci Quarterly Report for Q2 Ended Jun 30, 2023

    MSCI Inc.'s Form 10-Q for the quarter ended June 30, 2023 shows continued revenue and profit growth. Operating revenues were $621.2 million for the three months ended June 30, 2023, up 12.6% from $551.8 million a year earlier, and $1.21 billion for the six months, up 9.1%. Net income rose to $246.8 million for the quarter (up 17.2%) and $485.6 million for the six months (up 10.6%). Diluted EPS was $3.09 for the quarter versus $2.59, and $6.05 for the six months versus $5.37. Adjusted EBITDA was $377.3 million for the quarter, up 13.9%, with an Adjusted EBITDA margin of 60.7%. Growth was led by Index recurring subscriptions, ESG and Climate products (up 29.6% in recurring subscriptions for the quarter), and Analytics. Asset-based fees rose 4.5% in the quarter but fell 2.2% for the six months. Capital allocation remained shareholder-focused. The company repurchased $440.8 million of stock in the first six months of 2023 and declared a quarterly dividend of $1.38 per share, payable August 31, 2023. Remaining repurchase authorization was $863.5 million as of June 30, 2023. Total debt principal was $4.54 billion, including $4.20 billion of senior unsecured notes, and the company reported a Consolidated Leverage Ratio of 2.88:1.00 against a 4.25:1.00 maximum covenant. Total shareholders' deficit was $(1.19) billion. Cash and cash equivalents were $792.3 million at period end, and net cash from operating activities was $555.9 million for the six months. Run Rate reached $2.45 billion, up 10.7% from June 30, 2022, with recurring subscription Run Rate up 11.8%. Retention Rate was 95.5% for the quarter, unchanged year over year. Net new recurring subscription sales declined 15.0% in the quarter, mainly due to ESG and Climate and All Other – Private Assets, while Index net new sales rose 10.4%. The company had 4,980 employees at June 30, 2023.

    Jul 25, 2023
  12. 2023-Q1

    Msci Quarterly Report for Q1 Ended Mar 31, 2023

    MSCI Inc. reported operating revenues of $592.2 million for the three months ended March 31, 2023, up 5.8% from $559.9 million a year earlier, with recurring subscriptions up 11.4% to $445.2 million while asset-based fees fell 8.2% to $133.1 million. Operating income rose to $314.6 million from $289.0 million, and net income increased 4.5% to $238.7 million, or $2.97 diluted earnings per share versus $2.78 a year earlier. Consolidated Adjusted EBITDA was $344.7 million, up 8.2%, with an Adjusted EBITDA margin of 58.2% compared with 56.9%. Total Run Rate reached $2.38 billion at March 31, 2023, up 6.7%, driven by an 11.6% increase in recurring subscription Run Rate, partly offset by a 7.2% decline in asset-based fee Run Rate. Average AUM in ETFs linked to MSCI equity indexes was $1,287.5 billion in the quarter, down 7.5% from the prior-year period. Total net sales fell to $50.2 million from $63.2 million, and the retention rate was 95.2% versus 95.9%. At March 31, 2023, the company had $4.2 billion of senior unsecured notes and $345.6 million of Tranche A term loans outstanding, with $500 million of undrawn revolving commitments. Cash and cash equivalents were $1.08 billion, and shareholders' equity remained in deficit at $(901.4) million. The company repurchased no shares in the quarter, retained $1.30 billion of authorization under its 2022 Repurchase Program, and declared a quarterly dividend of $1.38 per share for the second quarter of 2023.

    Apr 25, 2023
  13. 2022-Q3

    Msci Quarterly Report for Q3 Ended Sep 30, 2022

    MSCI Inc. reported third-quarter 2022 results in this Form 10-Q for the quarter ended September 30, 2022. Operating revenues rose 8.4% to $560.6 million for the three months and 12.0% to $1.67 billion for the nine months, with recurring subscriptions up 17.5% in the quarter, partly reflecting the acquisition of Real Capital Analytics (RCA). Net income increased 27.5% to $216.6 million for the quarter and 23.2% to $655.6 million for the nine months, and diluted EPS was $2.68 for the quarter versus $2.03 a year earlier. Adjusted EBITDA reached $341.0 million for the quarter (60.8% margin) and $990.6 million for the nine months. Asset-based fees declined 11.4% in the quarter, driven by lower average AUM in ETFs linked to MSCI equity indexes, which averaged $1,208.9 billion in the quarter and ended September 30, 2022 at $1,081.2 billion. Run Rate totaled $2.20 billion, up 5.1%, with recurring subscription Run Rate up 11.5% offset by a 12.9% decline in asset-based fee Run Rate. Retention Rate was 96.4% for the quarter. Balance sheet and capital return remain significant. Cash and cash equivalents fell to $867.1 million from $1.42 billion at year-end 2021, reflecting $1.33 billion of share repurchases and $272.8 million of dividends paid during the nine months. Total debt principal was $4.55 billion, and shareholders' equity was a deficit of $1.08 billion. The company's Consolidated Leverage Ratio was 3.14:1.00 against a covenant maximum of 4.25:1.00. The board declared a $1.25 quarterly dividend on October 24, 2022, and $1,374.5 million remained under the 2022 Repurchase Program.

    Oct 25, 2022
  14. 2022-Q2

    Msci Quarterly Report for Q2 Ended Jun 30, 2022

    MSCI Inc. reported its Form 10-Q for the quarter ended June 30, 2022. Operating revenues for the three months ended June 30, 2022 were $551.8 million, up 10.8% from $498.2 million a year earlier, and for the six months were $1,111.8 million, up 13.8%. Recurring subscriptions drove growth, rising 16.9% in the quarter, with All Other – Private Assets (which includes the RCA acquisition, completed September 13, 2021) up 100.2% and ESG and Climate up 40.2%. Asset-based fees fell 2.9% in the quarter, reflecting lower AUM in ETFs linked to MSCI equity indexes, which declined to $1,189.5 billion at June 30, 2022 from $1,389.3 billion at March 31, 2022. Profitability improved: operating income rose to $300.4 million for the quarter (up 16.6%) and net income to $210.6 million (up 27.3%), with diluted EPS of $2.59 versus $1.99. Adjusted EBITDA was $331.1 million, a 60.0% margin. Cash and cash equivalents fell to $842.3 million from $1,421.4 million at year-end 2021, reflecting $1,158.5 million of share repurchases and $171.9 million of dividend payments in the six months. Total debt was $4,550.0 million principal, and the company amended its credit agreement on June 9, 2022, with a $500.0 million undrawn revolver. Total shareholders' deficit was $(1,026.4) million, versus $(163.5) million at December 31, 2021, largely due to treasury stock purchases. Subsequent to quarter-end, on July 25, 2022, the Board declared a quarterly dividend of $1.25 per share, a 20.2% increase over the $1.04 declared for the second quarter, payable August 31, 2022.

    Jul 26, 2022
  15. 2022-Q1

    Msci Quarterly Report for Q1 Ended Mar 31, 2022

    MSCI Inc. reported first-quarter 2022 operating revenues of $559.9 million, up 17.0% from $478.4 million a year earlier, with net income of $228.4 million (up 16.1%) and diluted EPS of $2.78 versus $2.36. The filing attributes the growth to recurring subscriptions (up 18.4%), asset-based fees (up 14.5%), and the acquisition of Real Capital Analytics (RCA), which contributed $19.2 million of first-quarter revenue. Adjusted EBITDA rose 15.2% to $318.5 million, although the Adjusted EBITDA margin declined to 56.9% from 57.8% because expenses grew faster than revenue. Operating expenses rose 20.9%, with compensation and benefits up 18.7% on headcount growth of 17.0%. Total Run Rate reached $2.23 billion, up 17.4%, and total gross sales were $79.9 million, up 28.5%. Retention Rate was 95.9% versus 96.3% a year earlier. Cash and cash equivalents fell to $679.3 million from $1.42 billion at year-end 2021, largely because of $877.7 million in share repurchases and $87.8 million in dividend payments. Shareholders' equity was a deficit of $879.2 million, and long-term debt was $4.16 billion against $4.2 billion of senior notes outstanding. The company had $816.5 million of remaining repurchase authorization and declared a quarterly dividend of $1.04 per share.

    Apr 26, 2022
  16. 2021-Q3

    Msci Quarterly Report for Q3 Ended Sep 30, 2021

    MSCI Inc. reported third-quarter 2021 operating revenues of $517.1 million, up 21.6% from $425.3 million a year earlier, and net income of $169.9 million, down 6.8% from $182.4 million. For the nine months ended September 30, 2021, operating revenues rose 19.3% to $1,493.7 million and net income rose 19.4% to $532.1 million. Adjusted EBITDA increased 22.9% to $306.6 million in the quarter, with margin of 59.3%. The filing attributes the quarter's lower net income mainly to a $37.3 million loss on extinguishment of the 2027 Senior Notes, which were redeemed early after the company issued $700.0 million of 3.250% notes due 2033. The company's largest growth driver was asset-based fees, which rose 41.2% in the quarter to $141.7 million, driven by a 52.4% increase in average AUM in ETFs linked to MSCI equity indexes. Recurring subscriptions grew 14.2% to $357.6 million. Acquisition of Real Capital Analytics, Inc. (RCA) for $948.7 million in cash on September 13, 2021 added goodwill of $665.1 million and intangible assets, and it contributed $3.4 million of operating revenue after closing. Total Run Rate reached $2,096.3 million, up 21.9%. Leverage rose as the company funded the RCA acquisition and debt redemptions with new senior notes. Senior Notes outstanding totaled $4,200.0 million at September 30, 2021, and the $500.0 million revolver was undrawn. Shareholders' equity was a deficit of $280.0 million. The Consolidated Leverage Ratio was 3.56:1.00 against a 4.25:1.00 maximum, and the Consolidated Interest Coverage Ratio was 7.42:1.00 against a 4.00:1.00 minimum. The board declared a quarterly dividend of $1.04 per share on October 25, 2021.

    Oct 26, 2021
  17. 2021-Q2

    Msci Quarterly Report for Q2 Ended Jun 30, 2021

    MSCI Inc. reported second-quarter 2021 operating revenues of $498.2 million, up 21.6% from $409.6 million a year earlier, and six-month revenues of $976.6 million, up 18.2%. Growth was led by asset-based fees, which rose 54.6% in the quarter to $136.1 million, reflecting a 66.4% increase in average AUM in ETFs linked to MSCI equity indexes. Net income for the quarter was $165.4 million (diluted EPS of $1.99), up 43.7%, and Adjusted EBITDA was $294.9 million, up 24.6%, with a 59.2% margin. Total Run Rate reached $1,979.6 million, up 20.2%, and recurring subscriptions Run Rate rose 12.0% to $1,439.6 million. The quarter included a $16.0 million non-cash write-off of internally developed capitalized software tied to management's decision to discontinue certain Analytics products, and a $21.8 million loss on extinguishment of debt from redeeming the 4.750% senior notes due 2026. Earnings also benefited from lower other expense in the period compared with the prior year, which included a $35.0 million debt extinguishment loss in second-quarter 2020. The company issued $600.0 million of 3.625% senior notes due 2031 in May 2021 and had $4,000.0 million of senior notes outstanding at June 30, 2021, with its $500.0 million revolver undrawn. Cash and cash equivalents increased to $1,972.0 million from $1,300.5 million at December 31, 2020, and shareholders' equity was a deficit of $(367.8) million. The company declared a third-quarter 2021 dividend of $1.04 per share, which the filing describes as a 33.3% increase over the prior quarter's dividend, and it repurchased $134.3 million of stock in the first half of 2021, leaving $1,594.4 million of authorization remaining. The filing states that management concluded disclosure controls were effective and that there were no material changes to risk factors disclosed in the 2020 Form 10-K.

    Jul 27, 2021
  18. 2021-Q1

    Msci Quarterly Report for Q1 Ended Mar 31, 2021

    MSCI Inc. reported first-quarter 2021 operating revenues of $478.4 million, up 14.8% from $416.8 million a year earlier, with net income of $196.8 million (up 32.9%) and diluted EPS of $2.36 (versus $1.73). Adjusted EBITDA rose 20.7% to $276.6 million, and the Adjusted EBITDA margin improved to 57.8% from 55.0%, reflecting faster revenue growth than Adjusted EBITDA expenses. Growth was led by asset-based fees, which rose 26.5% to $126.7 million on a 33.3% increase in average AUM in ETFs linked to MSCI equity indexes, and by ESG and Climate revenues, which rose 37.7% to $34.8 million. Total Run Rate reached $1,899.0 million, up 18.4%. The balance sheet shows cash and equivalents of $1,747.1 million at March 31, 2021, up from $1,300.5 million at year-end 2020. Total debt carrying value rose to $3,865.9 million in Senior Notes, after MSCI issued $500.0 million of 3.625% notes due 2030 on March 26, 2021, and total shareholders' deficit widened to $(481.6) million. The company repurchased $134.3 million of stock in the quarter and declared a $0.78 per share quarterly dividend for the second quarter of 2021. On April 12, 2021, it redeemed all $500.0 million of its 4.750% notes due 2026, which will produce an approximately $21.8 million loss on extinguishment in the second quarter. The filing states that the Revolving Credit Agreement was amended to $500.0 million of availability and is undrawn. The Consolidated Leverage Ratio was 3.53:1.00 against a 4.25:1.00 maximum, and the Consolidated Interest Coverage Ratio was 7.57:1.00 against a 4.00:1.00 minimum. Management concluded that disclosure controls were effective as of March 31, 2021.

    Apr 28, 2021
  19. 2020-Q3

    Msci Quarterly Report for Q3 Ended Sep 30, 2020

    MSCI Inc. reported third-quarter 2020 operating revenues of $425.3 million, up 7.9% from $394.3 million a year earlier, and net income of $182.4 million, up 33.1%. For the nine months ended September 30, 2020, operating revenues rose 8.7% to $1,251.7 million, Adjusted EBITDA increased 13.5% to $715.4 million, and Adjusted EBITDA margin reached 57.2% versus 54.8%. Recurring subscriptions grew 8.7% in the quarter, and Total Run Rate grew 10.9% to $1,719.6 million as of September 30, 2020. The filing notes that COVID-19 may moderate recurring subscription growth and that equity market volatility may affect AUM and asset-based fees going forward. Balance sheet activity was significant during the period. MSCI issued $400.0 million of 3.625% senior notes due 2030 and $1,000.0 million of 3.875% senior notes due 2031, using proceeds to redeem its 5.250% notes due 2024 and 5.75% notes due 2025, which produced losses on debt extinguishment that drove other expense higher. Total long-term debt was $3,400.0 million in principal at September 30, 2020, and the $400.0 million revolver was undrawn. Shareholders' equity was a deficit of $386.6 million, reflecting $563.3 million of share repurchases in the nine months and $181.8 million of dividends paid. Cash and cash equivalents declined to $1,302.9 million from $1,506.6 million at year-end 2019. The company also acquired a 40% non-controlling interest in Burgiss for $190.8 million, accounted for under the equity method, and declared a quarterly dividend of $0.78 per share on October 26, 2020.

    Oct 28, 2020
  20. 2020-Q2

    Msci Quarterly Report for Q2 Ended Jun 30, 2020

    MSCI Inc. reported operating revenues of $409.6 million for the three months ended June 30, 2020, up 6.2% from $385.6 million a year earlier, and $826.4 million for the six months, up 9.2%. Operating income rose 11.9% in the quarter to $215.2 million, but net income fell 8.4% to $115.1 million, and diluted EPS was $1.36 versus $1.47. The decline in net income reflects other expense of $76.0 million in the quarter, driven mainly by a $35.0 million loss on early redemption of the 2025 Senior Notes and higher interest expense. Adjusted EBITDA rose 11.8% to $236.7 million, with margin of 57.8%. Recurring subscriptions grew 7.2% in the quarter, and Total Run Rate grew 8.5% to $1,647.3 million as of June 30, 2020. The company noted that COVID-19 may moderate recurring subscription growth and affect asset-based fees through AUM volatility. Balance sheet activity was significant during the period. MSCI issued $400.0 million of 3.625% senior notes due 2030 in March 2020 and $1,000.0 million of 3.875% senior notes due 2031 in May 2020, using proceeds to redeem its 5.250% notes due 2024 and 5.75% notes due 2025. Long-term debt rose to $3.36 billion, and total shareholders' equity was a deficit of $310.9 million. Cash and equivalents declined to $1.38 billion from $1.51 billion at year-end 2019. The company also acquired a 40% non-controlling interest in Burgiss for $190.8 million, accounted for under the equity method. Operating cash flow for the six months was $375.4 million, versus $277.3 million a year earlier. Shareholder returns continued, with $356.8 million of shares repurchased in the first six months and $1,099.3 million of authorization remaining. The Board declared a third-quarter 2020 dividend of $0.78 per share, a 14.7% increase over the prior quarter's $0.68.

    Jul 29, 2020
  21. 2020-Q1

    Msci Quarterly Report for Q1 Ended Mar 31, 2020

    MSCI Inc. reported first-quarter 2020 operating revenues of $416.8 million, up 12.2% from $371.4 million a year earlier, with operating income of $207.9 million (up 27.8%) and net income of $148.1 million, down 16.9% from $178.2 million. The prior-year quarter included a tax benefit of $49.9 million, which makes the year-over-year net income comparison less direct; the company's effective tax rate was 9.0% in 2020, helped by $22.4 million of favorable discrete items. Adjusted EBITDA rose 15.9% to $229.2 million, and the Adjusted EBITDA margin reached 55.0%. Recurring subscriptions grew 7.8% and asset-based fees grew 22.5%, while the filing notes that COVID-19 may moderate subscription growth and reduce asset-based fees as equity markets were volatile. Balance sheet and capital activity were significant in the quarter. MSCI issued $400.0 million of 3.625% senior notes due 2030 and used part of the proceeds to redeem the remaining $300.0 million of its 5.25% notes due 2024, which produced a $10.0 million loss on extinguishment. Cash and cash equivalents fell to $1,066.9 million from $1,506.6 million at year-end 2019, largely reflecting a $201.6 million net cash outflow for investing activities, including a $190.8 million 40% stake in Burgiss, and $372.9 million of share repurchases. Total shareholders' equity was a deficit of $354.3 million at March 31, 2020. Management reported a Consolidated Leverage Ratio of 3.29:1.00 against a 4.25:1.00 maximum and an Interest Coverage Ratio of 6.43:1.00 against a 4.00:1.00 minimum. Key operating metrics were mixed. Total Run Rate grew 8.5% to $1,604.2 million, and the Retention Rate was 95.0% versus 95.2% a year earlier. Equity ETF AUM linked to MSCI indexes fell to $709.5 billion at March 31, 2020 from $802.2 billion a year earlier. The company stated that it expects operating cash flows for 2020 to decrease from 2019 levels partly because of the pandemic, while it expects capital expenditures to increase.

    Apr 29, 2020
  22. 2019-Q3

    Msci Quarterly Report for Q3 Ended Sep 30, 2019

    MSCI Inc. reported third-quarter 2019 results in its Form 10-Q filed October 31, 2019. Operating revenues rose 10.1% to $394.3 million for the three months ended September 30, 2019, and net income increased 10.6% to $137.0 million. For the nine months, operating revenues grew 7.4% to $1.15 billion and net income rose 23.9% to $440.9 million, aided by $66.6 million of excess tax benefits tied to vesting of 2016 multi-year MSUs, which drove a 3.5% effective tax rate. Adjusted EBITDA increased 12.9% to $220.8 million for the quarter, with a margin of 56.0%. The company's Run Rate reached $1.55 billion at September 30, 2019, up 8.0% year over year, and Index recurring subscription Run Rate grew 11.1%. Asset-based fees rose 17.1% in the quarter, supported by a retrospective price increase on futures and options contracts and a 7.3% increase in average ETF AUM linked to MSCI indexes. The Retention Rate was 95.0% for the quarter and total gross sales were $54.7 million. Balance sheet items include cash of $881.2 million, long-term debt of $2.58 billion against $2.6 billion of senior notes principal, and shareholders' deficit of $(147.9) million. The Revolving Credit Agreement was undrawn, with a Consolidated Leverage Ratio of 2.96:1.00 against a 4.25:1.00 maximum. Subsequent events include the October 2, 2019 acquisition of Carbon Delta AG for approximately $18.0 million in cash, a new $750.0 million share repurchase authorization on October 29, 2019, and a quarterly dividend of $0.68 per share.

    Oct 31, 2019
  23. 2019-Q2

    Msci Quarterly Report for Q2 Ended Jun 30, 2019

    MSCI Inc. reported second-quarter 2019 operating revenues of $385.6 million, up 6.2% from $363.0 million a year earlier, with net income of $125.7 million (diluted EPS of $1.47) versus $116.8 million. For the six months ended June 30, 2019, operating revenues were $756.9 million (up 6.0%) and net income was $303.9 million (up 31.0%), with the increase boosted by a $66.6 million excess tax benefit from vesting of 2016 multi-year MSUs and an effective tax rate of negative 5.5%. Adjusted EBITDA rose 5.7% to $211.8 million for the quarter, with margin of 54.9%, and Run Rate grew 7.5% to $1,517.7 million at June 30, 2019. Recurring subscriptions drove growth, rising 8.4% in the quarter to $289.1 million, while asset-based fees were roughly flat at $87.7 million. Operating expenses rose 1.9% in the quarter, but the filing notes higher compensation costs in the six-month period, including $15.4 million of payroll tax expense tied to the 2016 multi-year MSU vesting. Total assets were $3.43 billion and shareholders' equity was a deficit of $231.8 million, reflecting ongoing share repurchases and dividends. Cash fell to $771.1 million from $904.2 million at year-end 2018, and the company paid $107.2 million in dividends during the first half. Debt totals $2.6 billion in senior unsecured notes, with a Consolidated Leverage Ratio of 3.04:1.00 and an Interest Coverage Ratio of 6.14:1.00 as of June 30, 2019, both within covenant limits. The Board declared a third-quarter 2019 dividend of $0.68 per share, a 17.2% increase over the prior quarter's dividend, and $706.1 million of repurchase authorization remained available.

    Aug 1, 2019
  24. 2019-Q1

    Msci Quarterly Report for Q1 Ended Mar 31, 2019

    MSCI Inc. reported first-quarter 2019 operating revenues of $371.4 million, up 5.7% from $351.3 million in the prior-year quarter, with net income rising 54.8% to $178.2 million, or $2.08 diluted EPS. The increase in net income was largely driven by a discrete tax benefit: the provision for income taxes was a benefit of $49.9 million, reflecting an effective tax rate of negative 38.9%, which included $77.8 million of discrete items, primarily $66.6 million of excess tax benefits from vesting of 2016 multi-year MSUs. Operating income declined 2.7% to $162.7 million, with operating margin falling to 43.8% from 47.6%, as operating expenses rose 13.3%, including $15.4 million of payroll tax expense tied to the MSU vesting. Adjusted EBITDA rose 5.9% to $197.7 million. Recurring subscriptions grew 8.3% to $282.4 million, while asset-based fees declined 4.3% to $81.8 million, reflecting a 1.7% decrease in average AUM in ETFs linked to MSCI indexes. Total Run Rate grew 5.3% to $1,478.1 million at March 31, 2019, and the Retention Rate was 95.2% versus 94.6% a year earlier. Index segment revenues increased 6.4%, Analytics 2.1%, and All Other (ESG and Real Estate) 15.6%. Balance sheet and cash flow items show cash and equivalents of $642.8 million, down from $904.2 million at December 31, 2018, and total shareholders' deficit of $316.5 million. The company repurchased $102.1 million of common stock in the quarter and paid $57.9 million in dividends, and it declared a $0.58 per share dividend for second quarter 2019. Long-term debt was $2.58 billion in carrying value against $2.6 billion in senior notes, and the revolving credit facility was undrawn. The filing also adopted ASU 2016-02 (leases), recognizing $170.6 million in right-of-use assets and $190.7 million in lease liabilities.

    May 3, 2019
  25. 2018-Q3

    Msci Quarterly Report for Q3 Ended Sep 30, 2018

    MSCI Inc. filed this Form 10-Q for the quarter ended September 30, 2018. Operating revenues for the three months ended September 30, 2018 rose 11.1% to $357.9 million, and net income increased 45.4% to $123.8 million, with diluted EPS of $1.36. For the nine months, operating revenues grew 14.1% to $1,072.3 million and net income rose 48.6% to $355.8 million. Adjusted EBITDA for the nine months increased 19.9% to $582.7 million, with Adjusted EBITDA margin of 54.3%. Growth was driven largely by asset-based fees tied to index-linked products, which grew 29.1% for the nine months, while the effective tax rate fell to 19.6% partly due to discrete items and Tax Reform effects. Total Run Rate reached $1,435.3 million at September 30, 2018, up 10.0% year over year. Run Rate for recurring subscriptions grew 9.3%, and average AUM in ETFs linked to MSCI equity indexes rose 30.4% for the nine months. The company adopted the new revenue standard (ASC 606) on January 1, 2018 using the modified retrospective approach, which increased accounts receivable and deferred revenue, with the net effect on retained earnings reflected in the adjustment. Balance sheet activity included a $500.0 million 5.375% senior notes offering due 2027 completed in May 2018, bringing total senior notes to $2.6 billion. Cash and cash equivalents were $1,398.4 million at September 30, 2018, versus $889.5 million at year-end 2017. The company repurchased $268.9 million of stock in the nine months and had $1,464.2 million of remaining repurchase authorization. The company also agreed to sell InvestorForce, which closed on October 12, 2018 for $62.8 million in cash, with an estimated pre-tax gain of approximately $47.0 million.

    Nov 2, 2018
  26. 2018-Q2

    Msci Quarterly Report for Q2 Ended Jun 30, 2018

    MSCI Inc. reported operating revenues of $363.0 million for the three months ended June 30, 2018, up 14.9% from $316.1 million a year earlier, and $714.4 million for the six months, up 15.7%. Net income rose 43.8% to $116.8 million for the quarter and 50.4% to $231.9 million for the six months. Operating income increased 18.8% in the quarter, and Adjusted EBITDA grew 20.5% to $200.4 million, with margin expanding to 55.2% from 52.6%. Growth was led by the Index segment, where asset-based fees rose 30.4% in the quarter on higher average AUM in ETFs linked to MSCI indexes. Balance sheet and capital activity changed meaningfully in the period. Cash and cash equivalents increased to $1.37 billion from $889.5 million at December 31, 2017, after the company issued $500.0 million of 5.375% Senior Notes due 2027 in May 2018. Long-term debt rose to $2.57 billion from $2.08 billion. Total shareholders' equity fell to $346.4 million from $401.0 million, reflecting $246.7 million of treasury share repurchases in the six months. Dividends declared were $0.38 per share in each quarter, and the board declared a $0.58 per share dividend for the third quarter of 2018. Subsequent to quarter end, MSCI agreed on July 25, 2018 to sell Investor Force Holdings, Inc. for approximately $62.0 million, with closing expected within three months. The company's Total Run Rate reached $1.41 billion at June 30, 2018, up 12.0% year over year. Results also include a $10.6 million gain from the April 2018 divestiture of Financial Engineering Associates, and a $7.9 million non-cash write-off of the IPD tradename.

    Aug 3, 2018
  27. 2018-Q1

    Msci Quarterly Report for Q1 Ended Mar 31, 2018

    MSCI Inc. reported first-quarter 2018 results with operating revenues of $351.3 million, up 16.6% from $301.2 million in the prior-year quarter, and net income of $115.1 million, up 57.8% from $73.0 million. Diluted EPS was $1.24 versus $0.80 a year earlier. Operating income rose to $167.2 million from $130.7 million, and operating margin was 47.6% compared with 43.4%. Adjusted EBITDA reached $186.7 million, up 23.8%, with an Adjusted EBITDA margin of 53.1%. Growth was led by the Index segment, where asset-based fees rose 48.6% on a 48.7% increase in average AUM in ETFs linked to MSCI indexes. The company adopted the new revenue standard ASC 606 on January 1, 2018 using the modified retrospective approach. This raised accounts receivable and deferred revenue significantly, with no impact on retained earnings at adoption. For Q1 2018, adoption increased operating revenues by $2.3 million and net income by $1.8 million compared with the prior method. Total Run Rate grew 16.2% to $1,403.1 million, and the Aggregate Retention Rate was 94.6%. Cash and cash equivalents were $849.8 million, and long-term debt was $2,078.8 million. The company repurchased $68.3 million of stock in the quarter and, after quarter end, authorized a new $1.0 billion repurchase program. It also declared a $0.38 quarterly dividend. Subsequent events include the April 9, 2018 divestiture of Financial Engineering Associates, Inc., whose Run Rate was approximately $8.0 million, and the board's authorization to opportunistically explore financing options that would increase outstanding debt. The company reported a Consolidated Leverage Ratio of 2.83:1.00 and an Interest Coverage Ratio of 6.59:1.00 against covenant limits of 4.25:1.00 and 4.00:1.00, respectively.

    May 4, 2018
  28. 2017-Q3

    Msci Quarterly Report for Q3 Ended Sep 30, 2017

    MSCI Inc. reported results for the quarter ended September 30, 2017 in this Form 10-Q. Operating revenues grew 11.7% to $322.1 million for the three months and 9.5% to $939.4 million for the nine months, driven largely by asset-based fees, which rose 29.8% in the quarter to $72.9 million. Net income increased 30.4% to $85.2 million for the quarter ($0.93 diluted EPS) and 24.3% to $239.4 million for the nine months ($2.61 diluted EPS). Adjusted EBITDA rose 17.6% to $168.6 million for the quarter, with margin expanding to 52.3% from 49.7%. Management attributed the margin improvement to faster revenue growth than Adjusted EBITDA expenses, primarily from Index segment asset-based fees. The balance sheet shows cash and cash equivalents of $799.0 million against long-term debt of $2,077.4 million, with total shareholders' equity of $360.3 million. Nine-month operating cash flow was $261.0 million, down from $303.5 million a year earlier, which the company attributed to higher payments for operating expenses, income taxes and interest. The company repurchased $150.4 million of treasury shares and paid $85.3 million in dividends during the nine months, and $733.1 million of authorization remained under its 2016 repurchase program at quarter end. The Board declared a $0.38 per share dividend for the fourth quarter of 2017. The Total Run Rate reached $1,305.0 million at September 30, 2017, up 13.8% year over year, and AUM in ETFs linked to MSCI indexes was $674.3 billion, up 42.0%. The company disclosed that its Consolidated Leverage Ratio was 3.12:1.00 against a 4.25:1.00 maximum, and that it adopted ASU 2016-09 during the period, which increased diluted EPS by $0.05 for the nine months.

    Nov 3, 2017
  29. 2017-Q2

    Msci Quarterly Report for Q2 Ended Jun 30, 2017

    MSCI Inc. reported its second-quarter 2017 results in this Form 10-Q for the period ended June 30, 2017. Operating revenues rose 8.8% to $316.1 million for the three months ended June 30, 2017, from $290.6 million a year earlier, and net income increased 21.4% to $81.3 million. Asset-based fees were the fastest-growing revenue type, up 35.5% to $67.2 million, driven by a 35.6% increase in average AUM in ETFs linked to MSCI indexes. Adjusted EBITDA rose 13.8% to $166.2 million, and Adjusted EBITDA margin improved to 52.6% from 50.3%. Total Run Rate grew 12.6% to $1.26 billion at June 30, 2017, and AUM in ETFs linked to MSCI indexes reached $624.3 billion, up 42.0% year over year. Net income for the six months was $154.2 million, and cash provided by operating activities was $159.2 million. Cash and cash equivalents were $750.6 million, of which $365.0 million was held by foreign subsidiaries. Long-term debt was $2.08 billion, against $2.1 billion of senior unsecured notes outstanding. The Consolidated Leverage Ratio was 3.25:1.00 against a 4.25:1.00 maximum, and the Consolidated Interest Coverage Ratio was 6.41:1.00 against a 4.00:1.00 minimum. The company repurchased $127.7 million of shares in the first half of 2017, leaving $742.2 million of authorization under its 2016 Repurchase Program. On August 1, 2017, the Board declared a third-quarter dividend of $0.38 per share, up 35.7% from the second-quarter dividend of $0.28. PricewaterhouseCoopers LLP reviewed the interim statements but did not audit them.

    Aug 4, 2017
  30. 2017-Q1

    Msci Quarterly Report for Q1 Ended Mar 31, 2017

    MSCI Inc. reported first-quarter 2017 operating revenues of $301.2 million, up 8.0% from $278.8 million in the prior-year quarter, and net income of $73.0 million, up 20.8% from $60.4 million. Diluted EPS was $0.80 versus $0.60. Operating income rose 15.4% to $130.6 million, with operating margin expanding to 43.4% from 40.6%. Adjusted EBITDA increased 13.2% to $150.7 million, and Adjusted EBITDA margin improved to 50.0% from 47.8%, driven mainly by faster revenue growth in the Index segment than in Adjusted EBITDA expenses. Growth was led by Index, where revenues rose 13.0% to $163.4 million, and asset-based fees rose 18.1% to $57.5 million on 28.5% higher average AUM in ETFs linked to MSCI indexes. Total Run Rate grew 8.6% to $1.21 billion, and AUM in ETFs linked to MSCI indexes reached $555.7 billion at March 31, 2017, up $117.4 billion year over year. Analytics revenues grew 2.0% and its Adjusted EBITDA declined 2.7%. Gross and net new recurring subscription sales were down year over year, with net new recurring subscription sales falling 10.6%. Capital allocation remained active: the company repurchased $100.4 million of treasury shares in the quarter, paid $25.5 million in dividends, and had $781.2 million of remaining repurchase authorization. Cash and equivalents fell to $697.0 million from $791.8 million, and long-term debt was $2.08 billion. The Board declared a $0.28 quarterly dividend on May 2, 2017. The company stated it is not party to any legal proceedings expected to have a material effect.

    May 5, 2017
  31. 2016-Q3

    Msci Quarterly Report for Q3 Ended Sep 30, 2016

    MSCI Inc.'s Form 10-Q for the quarter ended September 30, 2016 shows operating revenues of $288.4 million for the three months ended September 30, 2016, up 7.3% from $268.8 million a year earlier, and operating income of $123.3 million, up 13.0%. Net income rose 1.4% to $65.3 million, and diluted EPS was $0.68 versus $0.59. For the nine months, operating revenues grew 6.9% to $857.9 million, and net income increased 17.3% to $192.6 million. Adjusted EBITDA for the nine months was $422.5 million, a 49.3% margin. Total Run Rate grew 8.0% year over year to $1,146.9 million, and AUM in ETFs linked to MSCI indexes reached $474.9 billion at September 30, 2016. The balance sheet shows a significant shift toward leverage. Long-term debt increased to $2,074.5 million from $1,579.4 million at year-end 2015, following the August 2016 issuance of $500.0 million of 4.75% senior notes due 2026. Shareholders' equity declined to $551.5 million from $901.5 million, reflecting treasury share repurchases of $1,895.0 million in cost. The company repurchased approximately 6.9 million shares for $483.8 million in the first nine months under the 2015 program. Cash and cash equivalents rose to $974.1 million. Management reported a Consolidated Leverage Ratio of 3.62:1.00 and an Interest Coverage Ratio of 6.26:1.00 against covenant limits of 4.25:1.00 and 4.00:1.00. Subsequent to quarter-end, on October 26, 2016, the Board declared a $0.28 quarterly dividend payable November 30, 2016, and approved an additional $750.0 million share repurchase authorization, which together with remaining authority forms the 2016 Repurchase Program. Management expects 2016 interest expense of approximately $102 million, rising to about $116 million annually from the senior notes issued in 2015 and 2016.

    Oct 28, 2016
  32. 2016-Q2

    Msci Quarterly Report for Q2 Ended Jun 30, 2016

    MSCI Inc. reported operating revenues of $290.6 million for the three months ended June 30, 2016, up 7.4% from $270.6 million a year earlier, and $569.4 million for the six months, up 6.8%. Operating income rose 27.6% for the quarter to $125.7 million, and net income increased 19.5% to $67.0 million. Adjusted EBITDA grew 23.5% to $146.0 million for the quarter, with the Adjusted EBITDA margin rising to 50.3% from 43.7%. Growth was driven mainly by recurring subscriptions, which increased 8.0% to $232.7 million, and by lower operating expenses, which fell 4.2% to $164.9 million, with compensation and benefits down 6.7%. Balance sheet and capital allocation dominated the period. Cash and cash equivalents fell to $404.6 million from $777.7 million at year-end 2015, reflecting $466.7 million of treasury share repurchases in the first six months and $43.3 million of dividends. Total shareholders' equity dropped to $535.2 million from $901.5 million, and long-term debt stood at $1,580.5 million. The company reported a Consolidated Leverage Ratio of 2.84:1.00 and an Consolidated Interest Coverage Ratio of 6.76:1.00 against covenant limits of 3.75:1.00 and 4.00:1.00. Interest expense more than doubled for the quarter to $22.9 million from $11.1 million, following the 2025 Senior Notes issued in August 2015. On July 27, 2016, the Board authorized management to explore financing options that would increase total debt and interest expense, and declared a third-quarter dividend of $0.28 per share. Total Run Rate reached $1,119.0 million at June 30, 2016, up 5.3% year over year, while the value of AUM in ETFs linked to MSCI indexes was $439.7 billion, up 1.0%. Asset-based fees declined 3.0% for the quarter, reflecting lower ETF-linked revenue. Net new recurring subscription sales fell 22.9% for the quarter, and the Aggregate Retention Rate declined to 93.1% from 94.2%.

    Jul 29, 2016
  33. 2016-Q1

    Msci Quarterly Report for Q1 Ended Mar 31, 2016

    MSCI Inc. reported first-quarter 2016 operating revenues of $278.8 million, up 6.1% from $262.8 million in the first quarter of 2015. Operating income rose 27.5% to $113.1 million, and operating margin improved to 40.6% from 33.8%. Net income was $60.4 million, or $0.60 per diluted share, compared with $43.8 million, or $0.39 per diluted share, in the prior-year quarter, which included a $5.8 million loss from discontinued operations. Adjusted EBITDA rose 23.7% to $133.1 million, and Adjusted EBITDA margin increased to 47.8% from 41.0%. Growth was led by Index recurring subscription revenue, which rose 10.1%, and Analytics operating expenses fell 13.9%. Interest expense more than doubled to $22.9 million from $11.1 million, reflecting the $800.0 million 5.75% Senior Notes due 2025 issued in August 2015. Other expense, net rose 101.8% to $22.4 million as a result. Cash and cash equivalents fell to $445.0 million from $777.7 million at December 31, 2015, mainly because the company paid $346.7 million to repurchase treasury shares. Total shareholders' equity declined to $615.7 million from $901.5 million. Long-term debt was $1,580.0 million at March 31, 2016. Total Run Rate grew 7.9% to $1,112.0 million, and the Aggregate Retention Rate was 95.1%, compared with 94.4% a year earlier. The company paid $333.3 million to repurchase approximately 4.9 million shares at an average price of $68.45 under its 2015 Repurchase Program, and it declared a $0.22 quarterly dividend for the second quarter of 2016.

    Apr 29, 2016
  34. 2015-Q3

    Msci Quarterly Report for Q3 Ended Sep 30, 2015

    MSCI Inc. reported third-quarter 2015 results with operating revenues of $268.8 million, up 6.8% from $251.7 million a year earlier, and operating income of $109.1 million, up 29.8%. Operating margin expanded to 40.6% from 33.4%, and adjusted EBITDA rose 26.4% to $128.9 million, with adjusted EBITDA margin of 47.9% versus 40.5%. Diluted EPS from continuing operations was $0.59, compared with $0.44 a year earlier. For the nine months, revenues were $802.1 million (up 7.6%) and net income was $164.2 million, down from $239.8 million in the prior-year period, which included a gain on the sale of ISS. Total Run Rate reached $1,062.3 million at September 30, 2015, up 6.1% year over year, and recurring subscription Run Rate grew 6.2% to $874.5 million. Total sales were $18.7 million in the quarter, while the Index segment drove the strongest subscription growth. Management attributed the margin improvement to cost discipline following the completion of the Enhanced Investment Program in 2014. On the balance sheet, long-term debt rose to $1,578.8 million after the August 2015 issuance of $800.0 million of 5.75% senior notes due 2025, and cash increased to $993.5 million. Shareholders' equity fell to $1,119.1 million from $1,432.8 million, reflecting $444.6 million of share repurchases year to date and dividends. The company declared a $0.22 quarterly dividend and approved a new $1.0 billion share repurchase program on October 28, 2015.

    Oct 30, 2015
  35. 2015-Q2

    Msci Quarterly Report for Q2 Ended Jun 30, 2015

    MSCI Inc. reported second-quarter 2015 operating revenues of $270.6 million, up 6.4% from $254.2 million a year earlier, with operating income rising 11.3% to $98.5 million and operating margin reaching 36.4% versus 34.8%. Net income from continuing operations was $56.0 million, or $0.50 per diluted share, roughly flat with the prior year's $56.8 million. Total net income fell 48.0% to $56.0 million because the prior-year quarter included $50.9 million from discontinued operations, primarily the April 2014 sale of Institutional Shareholder Services Inc. (ISS). Growth was led by performance products, where revenues rose 8.5% to $163.0 million, and asset-based fees rose 16.0% to $51.2 million on a 15.0% increase in assets in MSCI-linked ETFs to $435.4 billion. Total Run Rate grew 7.7% to $1,062.8 million at June 30, 2015, and net new recurring subscription sales were $17.4 million for the quarter. Other expense rose to $11.1 million, driven by $5.8 million of higher interest expense on the 5.25% Senior Notes due 2024. Cash and cash equivalents declined to $455.0 million, and long-term debt remained $800.0 million. The company repurchased shares under its 2014 Repurchase Program, paid quarterly dividends of $0.18 per share, and declared a $0.22 per share dividend for the third quarter of 2015. On July 28, 2015, the Board authorized management to explore financing options that could increase leverage and interest expense.

    Jul 31, 2015
  36. 2015-Q1

    Msci Quarterly Report for Q1 Ended Mar 31, 2015

    MSCI Inc. reported first-quarter 2015 operating revenues of $262.8 million, up 9.6% from $239.7 million a year earlier, and operating income of $88.7 million, up 11.6% from $79.5 million. Operating margin rose to 33.8% from 33.2%. Net income fell to $43.8 million from $80.4 million, mainly because of a $5.8 million loss from discontinued operations (the sale of ISS, completed April 30, 2014) versus $33.3 million of income in the prior-year period. Income from continuing operations rose 5.3% to $49.6 million, and diluted EPS from continuing operations was $0.44 versus $0.40. Total operating expenses grew 8.6%, including a $3.4 million non-cash charge for terminating an analytics technology project. Interest expense rose to $11.1 million from $5.1 million following the November 2014 issuance of $800.0 million of 5.25% senior notes due 2024. Growth was driven by performance products, whose revenues rose 12.8% to $155.9 million, and by analytics products, which rose 5.3% to $106.8 million. Total Run Rate reached $1,030.8 million, up 7.9% year over year, and AUM in ETFs linked to MSCI indexes reached $418.0 billion, up 22.7%. Management stated that it had completed its Enhanced Investment Program and expects margin expansion to continue through 2015, excluding non-recurring charges. Cash and equivalents were $537.8 million at March 31, 2015, and operating cash flow was $66.7 million versus $25.2 million a year earlier. Capital returns continued: $10.4 million of treasury shares were repurchased in the quarter, $850.0 million is authorized under the 2014 program through December 31, 2016, and the company paid $20.4 million in dividends. The Board declared a second-quarter 2015 dividend of $0.18 per share, payable May 29, 2015.

    May 1, 2015
  37. 2014-Q3

    Msci Quarterly Report for Q3 Ended Sep 30, 2014

    MSCI Inc. reported a quarter in which its revenue grew while operating income was roughly flat. For the three months ended September 30, 2014, operating revenues rose $23.1 million, or 10.1%, to $251.7 million, while operating expenses increased 15.8% to $167.6 million, leaving operating income of $84.0 million versus $83.9 million a year earlier. For the nine months, operating revenues were $745.6 million, up 10.2%, but operating income fell 1.8% to $252.1 million, which the filing attributes in part to increased investment in the business. Net income for the nine months was $239.8 million, up from $175.3 million, but this was boosted by an $84.1 million income from discontinued operations that includes a $78.7 million gain on the April 30, 2014 sale of Institutional Shareholder Services Inc. (ISS) for $367.4 million. Income from continuing operations declined to $155.7 million from $159.0 million. Capital return was a major theme. The company paid $300.0 million in cash on September 19, 2014 under an accelerated share repurchase and received approximately 4.5 million shares, and it increased its 2014 repurchase authorization from $300.0 million to $850.0 million. It also declared its first regular quarterly dividend of $0.18 per share, payable October 31, 2014, implying an initial annual rate of $0.72. The filing states that the company is exploring refinancing its secured credit facilities and expects interest expense to increase significantly if that refinancing is completed, from a third-quarter annualized expense of $21.5 million. At September 30, 2014, cash and cash equivalents were $448.2 million, total assets were $2.88 billion, and total shareholders' equity was $1.40 billion, down from $1.56 billion at year-end 2013 as a result of repurchases. Total debt carrying amounts were $19.8 million current and $773.2 million long-term. Run Rate reached $1,001.2 million, up 9.7% year over year, and assets in ETFs linked to MSCI indexes were $377.9 billion. The filing also discloses a revision that increased net tax liabilities and goodwill as of December 31, 2013, which the company concluded was not material.

    Oct 30, 2014
  38. 2014-Q2

    Msci Quarterly Report for Q2 Ended Jun 30, 2014

    MSCI Inc. reported results for the quarter and six months ended June 30, 2014, with operating revenues of $254.2 million for the quarter, up 11.3% from $228.4 million a year earlier, and $493.9 million for the six months, up 10.3%. Operating income for the quarter fell 1.5% to $88.5 million, and operating margin declined to 34.8% from 39.4%. Management attributes the margin pressure to higher spending on sales, client service, information technology and product development, and says it expects expense growth in 2014 to continue to exceed revenue growth. Selling, general and administrative expense rose 35.3% in the quarter. The largest item affecting reported results was the April 30, 2014 sale of Institutional Shareholder Services Inc. (ISS) for $367.4 million in cash, subject to working capital adjustments. ISS is now reported as discontinued operations, and net income for the quarter rose to $107.7 million from $61.1 million, including a gain of $78.7 million on the ISS disposition recognized in the six-month period. Income from continuing operations was $56.8 million for the quarter, up 1.2%. The company now operates as a single segment. On the balance sheet, cash and cash equivalents increased to $683.2 million from $358.4 million at December 31, 2013, and goodwill fell to $1.56 billion. The filing also discloses a revision of prior tax liabilities, a $300.0 million 2014 share repurchase program, and a pending $15.0 million acquisition of GMI Ratings expected to close in the third quarter of 2014.

    Aug 6, 2014
  39. 2014-Q1

    Msci Quarterly Report for Q1 Ended Mar 31, 2014

    MSCI Inc. filed this Form 10-Q for the quarter ended March 31, 2014. Operating revenues rose 9.2% to $239.7 million from $219.5 million, but operating income fell 4.1% to $79.5 million, which the company attributes in part to increased investment in the business. Net income was $80.4 million, or $0.68 per diluted share, compared with $58.9 million, or $0.48, a year earlier. The increase was driven by $33.3 million of income from discontinued operations, which includes a $30.6 million income tax benefit tied to ISS. Income from continuing operations declined 11.0% to $47.1 million. The main strategic event is the agreement to sell Institutional Shareholder Services Inc. (ISS), signed March 17, 2014 and completed April 30, 2014 for approximately $367.4 million, subject to working capital adjustments. Following the sale, MSCI operates as a single segment, and the company expects to record a net gain in the quarter ending June 30, 2014. Run Rate grew 9.5% to $955.3 million, and ETF assets linked to MSCI indexes reached $340.8 billion, though that is down 4.6% year over year. Balance sheet and capital return activity was significant during the quarter. Cash and cash equivalents fell to $260.5 million from $358.4 million, largely because of $107.2 million in share repurchases. Total debt was roughly $802.8 million at quarter end, and the company authorized a new $300.0 million repurchase program on February 4, 2014. Operating expenses rose 17.3%, reflecting increased product development, sales, and corporate infrastructure spending.

    May 2, 2014
  40. 2013-Q3

    Msci Quarterly Report for Q3 Ended Sep 30, 2013

    MSCI Inc. reported third-quarter 2013 results with operating revenues of $258.2 million, up 9.7% from $235.4 million a year earlier, and net income of $55.3 million, or $0.46 per diluted share, versus $48.3 million, or $0.39, in the prior-year quarter. For the nine months ended September 30, 2013, revenues were $768.0 million (up 9.2%) and net income was $175.3 million, or $1.44 per diluted share. Growth was driven by the IPD and InvestorForce acquisitions and index and ESG subscriptions, while the average value of assets in ETFs linked to MSCI equity indices fell 17.0% year over year to $286.2 billion for the quarter. Total Run Rate reached $1,025.8 million, up 12.1%. The balance sheet showed cash and cash equivalents of $283.8 million at September 30, 2013, with long-term debt of $753.3 million (plus $54.1 million current maturities). The company repurchased shares under a $300.0 million 2012 program, including a $100.0 million August 2013 accelerated share repurchase, with $100.0 million remaining authorized through December 31, 2014. Management stated that it is not presently party to any legal proceedings expected to have a material effect. The filing also discloses that on October 31, 2013, MSCI engaged Morgan Stanley to explore strategic alternatives for the Governance business, including potential divestiture or other separation, with no assurance a transaction will result and a possibility of future impairment charges if the process has an adverse outcome.

    Nov 1, 2013
  41. 2013-Q2

    Msci Quarterly Report for Q2 Ended Jun 30, 2013

    MSCI Inc. reported second-quarter 2013 operating revenues of $257.9 million, up 8.1% from $238.6 million a year earlier, and six-month revenues of $509.8 million, up 9.0%. Operating income rose 11.5% to $97.2 million for the quarter, and net income increased 62.6% to $61.1 million, or $0.50 per diluted share. The quarter's net income growth was aided by the absence of the $20.6 million debt-refinancing expense recorded in the prior-year period, which cut other expense to $5.9 million from $29.9 million. Growth was driven by the Performance and Risk segment, where revenues rose 10.0% to $228.4 million, including contributions from the IPD and InvestorForce acquisitions. Index and ESG revenues increased 20.2%, and total Run Rate reached $992.6 million, up 7.9% year over year. However, AUM in ETFs linked to MSCI indices fell 17.6% year over year to $269.7 billion, reflecting the loss of Vanguard ETFs, and the company reported $74.4 billion of net outflows from MSCI-linked ETFs during the quarter. Balance sheet and capital return activity were notable. Cash and cash equivalents rose to $334.7 million, and total debt declined through repayments. Management completed a $100.0 million accelerated share repurchase under the December 2012 program and, on August 2, 2013, paid $100.0 million for a new ASR, receiving approximately 1.9 million shares initially. The company also disclosed that ISS settled an SEC investigation with a $300,000 civil penalty.

    Aug 2, 2013
  42. 2013-Q1

    Msci Quarterly Report for Q1 Ended Mar 31, 2013

    MSCI Inc. reported first-quarter 2013 results with operating revenues of $251.9 million, up $22.9 million, or 10.0%, from $229.1 million in the prior-year quarter. Net income rose to $58.9 million from $44.0 million, and diluted earnings per share were $0.48 compared with $0.35. Operating income increased to $90.5 million from $81.0 million, and the operating margin was 35.9% versus 35.4%. The company stated that excluding revenues from the IPD and InvestorForce acquisitions, revenues grew 5.8%. Total run rate grew 6.9% to $982.3 million, while the company noted that Vanguard ETF transitions away from MSCI indices reduced AUM-linked ETF assets. As of March 31, 2013, assets in ETFs linked to MSCI equity indices were $357.3 billion, down $45.0 billion from December 31, 2012 mainly due to $82.8 billion of Vanguard-related outflows. The balance sheet shows cash and cash equivalents of $263.0 million, no short-term investments (versus $70.9 million at year-end 2012), and long-term debt of $785.9 million plus $43.1 million current maturities. Total shareholders' equity increased to $1.49 billion. During the quarter the company acquired InvestorForce for $23.5 million in cash, completed the sale of its CFRA product line on March 31, 2013, made a $15.0 million prepayment on its 2012 Term Loan, and repurchased $9.4 million of treasury shares. Under the 2012 Repurchase Program, $200.0 million remained available through December 31, 2014. The company reported a Consolidated Leverage Ratio of 1.74:1.00 and an interest coverage ratio of 15.35:1.00 against covenant limits of 3.25:1.00 and 5.00:1.00. The filing states that MSCI is not presently party to any legal proceedings expected to have a material effect on its business, and the review report from Deloitte & Touche LLP identified no material modifications to the interim statements.

    May 10, 2013
  43. 2012-Q2-A

    Msci Quarterly Report (Amendment) for Q2 Ended Jun 30, 2012

    MSCI Inc. filed Amendment No. 1 on Form 10-Q/A to its Quarterly Report for the period ended June 30, 2012, which was originally filed with the SEC on August 3, 2012. The sole purpose of the amendment is to re-file an amended Exhibit 10.55, a Datafeed License Agreement, to restore certain information in response to SEC staff comments on the company's confidential treatment request. The filing states that no revisions are being made to MSCI's financial statements, and the only other changes are to Part II, Item 6, the Exhibit Index, and the currently dated Section 302 certifications (Exhibits 31.1 and 31.2). It should be read together with the original Form 10-Q. The amendment reports 121,795,503 shares of common stock, $0.01 par value, outstanding as of July 30, 2012. MSCI identifies itself as a large accelerated filer and a Delaware corporation headquartered at 7 World Trade Center in New York. The filing also notes that the company's Form 10-Q for the quarter ended September 30, 2012 was filed on November 6, 2012. The Exhibit Index lists several other documents, including an offer letter with Robert Qutub executed May 25, 2012, a change of employment status and release agreement with David M. Obstler executed August 2, 2012, the amended and restated credit agreement dated May 4, 2012, and a Deloitte & Touche LLP letter of awareness dated August 3, 2012 concerning unaudited interim financial information. The amendment is signed by Robert Qutub, Chief Financial Officer.

    Nov 16, 2012
  44. 2012-Q3

    Msci Quarterly Report for Q3 Ended Sep 30, 2012

    MSCI Inc. reported third-quarter 2012 results in its Form 10-Q for the quarter ended September 30, 2012. Operating revenues rose 4.6% to $235.4 million for the three months and 4.2% to $703.1 million for the nine months. Net income was $48.3 million for the quarter, down 3.0% from $49.8 million, and $129.8 million for the nine months, up 0.6%. Diluted EPS was $0.39 for the quarter versus $0.40 a year earlier, and $1.05 for the nine months, flat year over year. Growth was led by the Performance and Risk segment and index subscriptions, while asset-based fees from ETF-linked indices declined on a mix shift, and SG&A rose 17.2% in the quarter, partly due to severance costs and a $3.3 million lease exit charge tied to vacating 88 Pine Street. The balance sheet and cash flow strengthened. Cash and cash equivalents rose to $340.5 million from $252.2 million at year-end 2011, and operating cash flow was $287.7 million for the nine months versus $174.9 million a year earlier. Long-term debt fell to $822.4 million from $1,066.6 million, and the company refinanced its credit facility in May 2012 with an $880.0 million Term Loan A and a $100.0 million revolver. The company also reported that its Consolidated Leverage Ratio was 1.88:1.00 and its Consolidated Interest Coverage Ratio was 11.56:1.00 as of September 30, 2012, within the covenant limits. Looking ahead, the filing discloses a subsequent event: on October 30, 2012, MSCI agreed to acquire IPD Group Limited for approximately £77.9 million, to be financed with existing cash and expected to close in the quarter ending December 31, 2012. The filing also flags risks, including Vanguard's October 2012 decision to move 22 ETFs off MSCI indices (a run-rate loss of approximately $24.4 million), BlackRock's launch of lower-fee iShares products, and a Wells Notice from the SEC related to an ISS employee's alleged disclosure of confidential proxy voting information.

    Nov 6, 2012
  45. 2012-Q2

    Msci Quarterly Report for Q2 Ended Jun 30, 2012

    MSCI Inc. reported operating revenues of $238.6 million for the three months ended June 30, 2012, up 5.3% from $226.5 million a year earlier, and $467.6 million for the six months, up 4.0% from $449.8 million. Operating income rose 5.4% to $87.1 million in the quarter, while net income fell 17.8% to $37.5 million, or $0.30 per diluted share, as other expense increased to $29.9 million. The increase in other expense primarily reflects $20.6 million in fees tied to the May 4, 2012 refinancing, which replaced the 2011 Term Loan with an $880.0 million Term Loan A facility and a $100.0 million revolving facility maturing May 4, 2017. The Performance and Risk segment drove growth, with revenues up 6.2% to $207.6 million in the quarter, while the Governance segment was flat at $31.0 million. Index and ESG subscription revenues grew 14.4% in the quarter, offset by a 6.0% decline in asset-based fees as the value of assets in ETFs linked to MSCI equity indices fell to $327.4 billion at June 30, 2012 from $360.5 billion a year earlier. Total Run Rate reached $919.6 million, up 3.6% year over year. Cash and cash equivalents were $273.3 million, and cash from operations for the six months rose to $190.1 million from $80.2 million. The filing also notes a one-time $5.2 million cumulative revenue reduction in the first quarter to correct energy and commodity analytics revenue recognition, which the company determined was not material enough to require restatement. The company moved into its new 7 World Trade Center headquarters on July 23, 2012, and the Chief Financial Officer, David M. Obstler, agreed to step down as CFO upon the filing of this report, with a $1.7 million charge expected in the third quarter.

    Aug 3, 2012
  46. 2012-Q1

    Msci Quarterly Report for Q1 Ended Mar 31, 2012

    MSCI Inc. reported first-quarter 2012 operating revenues of $229.1 million, up from $223.3 million a year earlier, and net income of $44.0 million, or $0.35 per diluted share, compared with $33.5 million, or $0.27 per diluted share, in the prior-year quarter. Operating income rose to $81.0 million from $75.4 million, with operating margin of 35.4% versus 33.8%. Results were helped by lower restructuring costs and lower other expense, which fell to $12.7 million from $22.1 million as the prior-year quarter included $6.1 million of term loan repricing fees. The company also recorded a one-time $5.2 million cumulative revenue reduction tied to energy and commodity analytics contracts, which management said did not materially affect previously reported results. The Performance and Risk segment generated $198.1 million of revenue and $77.5 million of operating income, while the Governance segment generated $31.0 million of revenue and $3.5 million of operating income. Cash and cash equivalents rose to $266.0 million, operating cash flow was $69.5 million compared with a use of $25.9 million a year earlier, and short-term investments increased to $194.2 million. Long-term debt, net of current maturities, was $1,064.0 million at March 31, 2012. Subsequent to quarter end, on May 4, 2012, MSCI amended and restated its senior credit facilities into a $880.0 million Term Loan A and a $100.0 million revolving facility maturing in 2017, which replaced the Term Loan B. The company expects to recognize approximately $18.0 million to $20.0 million of additional expense in the second quarter related to this transaction. Shareholders also approved eliminating the class B common stock and increasing authorized class A shares to 750 million.

    May 4, 2012
  47. 2011-Q3

    Msci Quarterly Report for Q3 Ended Sep 30, 2011

    MSCI Inc. reported results for the three and nine months ended September 30, 2011, its first quarterly period after changing its fiscal year end from November 30 to December 31. Operating revenues for the three months rose to $225.0 million, up 11.0% from $202.7 million for the three months ended August 31, 2010, and operating income rose to $82.2 million from $41.4 million, with net income of $49.8 million ($0.40 per diluted share) versus $10.3 million a year earlier. The prior-year quarter carried $13.7 million of RiskMetrics acquisition-related costs in SG&A, which largely explains the year-over-year improvement. For the nine months, revenue was $674.8 million, up 50.1%, driven largely by the June 2010 RiskMetrics acquisition, and net income was $129.0 million ($1.05 per diluted share). Growth drivers highlighted in the filing include index and ESG asset-based fees, which rose 39.4% in the quarter as assets in ETFs linked to MSCI equity indices reached $329.1 billion on average, and risk management analytics, which grew 13.3%. Management also disclosed that ETF assets linked to MSCI indices fell to $290.1 billion at September 30, 2011 from $360.5 billion at June 30, 2011, a decline the filing attributes to market depreciation. The Governance segment's revenue fell 5.0% in the quarter to $28.8 million. On the balance sheet, total assets were $3.06 billion and long-term debt net of current maturities was $1.10 billion, down from $1.21 billion. Cash and cash equivalents were $221.6 million. In March 2011 the company refinanced its term loan into a $1,125.0 million 2011 Term Loan maturing in March 2017 at LIBOR plus 2.75%. The company also disclosed that it signed a lease for new headquarters at 7 World Trade Center, with rent commencing February 1, 2013 and total aggregate rent of approximately $170.1 million over the lease life.

    Nov 4, 2011
  48. 2011-Q2

    Msci Quarterly Report for Q2 Ended Jun 30, 2011

    MSCI Inc. filed its Form 10-Q for the quarter ended June 30, 2011, reporting operating revenues of $226.5 million for the three months ended June 30, 2011, up from $125.2 million for the three months ended May 31, 2010, and net income of $45.7 million ($0.37 diluted EPS) versus $24.1 million ($0.22 diluted EPS). For the six months ended June 30, 2011, operating revenues were $449.8 million and net income was $79.2 million, or $0.64 diluted EPS. The comparison reflects the June 1, 2010 acquisition of RiskMetrics Group, Inc. and the July 30, 2010 acquisition of Measurisk, LLC, which contributed approximately $84.3 million of the three-month revenue growth. The company also changed its fiscal year end from November 30 to December 31, effective January 1, 2011, so the periods compared are the three and six months ended June 30, 2011 versus the three and six months ended May 31, 2010. The balance sheet shows cash and cash equivalents of $175.9 million and short-term investments of $111.2 million at June 30, 2011, against long-term debt of $1,106.7 million net of non-current maturities plus $10.3 million current maturities. During the six months, the company repaid $1,271.4 million of long-term debt and borrowed $1,125.0 million under a new 2011 Term Loan maturing March 2017, which carries an interest rate of LIBOR plus 2.75%. Operating margin was 36.5% for the quarter and 35.2% for the six months, and the company's Consolidated Leverage Ratio under its credit facility was 2.66:1.00 as of June 30, 2011. The filing reports restructuring expenses of $4.5 million for the six months related to the RiskMetrics integration, with approximately $5 million of total lease-exit costs expected to be recognized by the end of fiscal 2011. Revenue growth was concentrated in the Performance and Risk segment, with Governance contributing $31.0 million of revenue in the quarter. The company reported that assets in ETFs linked to MSCI equity indices reached $360.5 billion as of June 30, 2011, and that it is not presently party to any legal proceedings expected to have a material effect on its business.

    Aug 5, 2011
  49. 2011-Q1

    Msci Quarterly Report for Q1 Ended Mar 31, 2011

    MSCI Inc. filed this Form 10-Q for the quarter ended March 31, 2011, reporting operating revenues of $223.3 million for the three months ended March 31, 2011, up from $121.7 million for the three months ended February 28, 2010. Operating income was $75.4 million and net income was $33.5 million, or $0.27 per diluted share, compared with net income of $27.5 million in the prior-year period. The company changed its fiscal year end from November 30 to December 31, so the filing also reports a one-month transition period ended December 31, 2010. The revenue increase was driven largely by the RiskMetrics acquisition completed June 1, 2010, which added the Governance segment and risk management analytics revenue. Growth in the comparison is partly attributable to acquisitions; the filing states that about $81.1 million of the year-over-year revenue growth came from acquisitions made in the second half of fiscal 2010. The balance sheet shows total assets of $2.91 billion and total liabilities of $1.76 billion as of March 31, 2011. Cash and cash equivalents fell to $127.6 million from $226.6 million at November 30, 2010, reflecting a net cash outflow from financing activities of $137.1 million. That outflow relates to the March 14, 2011 repricing of the term loan, in which a new $1,125.0 million 2011 Term Loan was used, together with $87.6 million of cash on hand, to repay the remaining $1,212.6 million of the 2010 Term Loan. The new loan carries a lower interest rate of LIBOR plus 2.75% and matures in March 2017. Operating cash flow was negative $25.9 million for the quarter, which the filing attributes to higher cash compensation and income tax payments, among other factors. The filing also highlights a restructuring plan tied to the RiskMetrics acquisition, which recorded $4.4 million of expense in the quarter, and $6.1 million of repricing fees recorded in other expense. Key operating metrics include a Total Run Rate of $863.7 million as of March 31, 2011, up 14.7% year over year, and assets in ETFs linked to MSCI indices of $350.1 billion. Deloitte & Touche LLP reviewed the interim financial statements, and the filing reports effective disclosure controls.

    May 6, 2011
  50. 2010-Q3

    Msci Quarterly Report for Q3 Ended Aug 31, 2010

    MSCI Inc. filed this Form 10-Q for the quarter ended August 31, 2010. The quarter was shaped by the June 1, 2010 acquisition of RiskMetrics Group, Inc., which was valued at approximately $1,572.4 million and funded in part by a new $1,275.0 million six-year term loan. Operating revenues for the three months ended August 31, 2010 rose to $202.7 million from $108.9 million, and for the nine months rose to $449.6 million from $324.2 million. Net income for the quarter fell to $10.3 million from $20.9 million, with diluted EPS of $0.08 versus $0.20, as higher interest expense, $13.7 million of RiskMetrics acquisition costs, and a $7.0 million restructuring charge weighed on results. Nine-month net income was $61.9 million, compared with $57.3 million a year earlier. The balance sheet expanded substantially. Goodwill rose to $1,703.5 million from $441.6 million, intangible assets to $732.9 million, and long-term debt, net of current maturities, to $1,254.0 million from $337.6 million. Cash and cash equivalents were $197.7 million at August 31, 2010. The company also reported that MSCI-linked ETF assets were $258.7 billion at quarter end, and the total Run Rate was $792.4 million. Management described the RiskMetrics acquisition as having a significant impact on future financial results, citing higher amortization and interest expense. The filing states that the company is restructuring operations following the acquisition, with expected restructuring costs for lease exits of $3 million to $4 million to be recognized in fiscal 2011. As of August 31, 2010, the company reported a Consolidated Leverage Ratio of 3.31:1.0 under its credit facility, compared with a maximum of 4.00:1.00 permitted through February 28, 2011.

    Oct 1, 2010