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Msci 8-K Report, Financial Results (Jan 30, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 30, 2024
Period End
January 30, 2024
Security
MSCI
In the 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. Leadership change8-K · Mar ’18Mar ’18
  2. Material agreement8-K · May ’20May ’20
  3. Material agreement8-K · Jun ’22Jun ’22
  4. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed January 30, 2024. Cited figures are marked; the original filing is the authoritative source.

MSCI Inc. reported fourth-quarter and full-year 2023 results on January 30, 2024, furnishing a press release as Exhibit 99.1.

For Q4 2023, operating revenues were $690.1 milliona, up 19.8% (organic growth 14.7%), operating income was $370.7 million, up 20.1%, and Adjusted EBITDA was $414.6 million, up 22.3%, with an Adjusted EBITDA margin of 60.1%. Diluted EPS was $5.07, up 89.9%, and Adjusted EPS was $3.68, up 29.6%. For full year 2023, operating revenues were $2.53 billion, up 12.5%, and diluted EPS was $14.39, up 34.2%.

Q4 net income of $403.4 millionb included a non-taxable, one-time $143.0 million gain on remeasurement of the equity method investment in Burgiss. The company reported a Total Run Rate of $2,686.2 million at December 31, 2023, up 15.8%, and a Q4 Retention Rate of 93.6%. Total debt principal was $4.5 billion, with a debt-to-Adjusted EBITDA ratio of 3.0x against a stated target range of 3.0x to 3.5x.

After year-end, MSCI entered an amended credit agreement providing a $1.25 billionc revolving credit facility, which was drawn to prepay its term loan A. The Board declared a first-quarter 2024 dividend of $1.60 per share, an increase of 15.9%. For full-year 2024, MSCI guided to operating expenses of $1,300 to $1,340 million, Adjusted EBITDA expenses of $1,130 to $1,160 million, an effective tax rate of 18% to 21%, capital expenditures of $95 to $105 million, operating cash flow of $1,330 to $1,380 million, and free cash flow of $1,225 to $1,285 million.

02—Key points

Key Highlights

  1. Q4 2023 operating revenues of $690.1 million, up 19.8%, with organic operating revenue growth of 14.7%
  2. Q4 2023 diluted EPS of $5.07, up 89.9%, and Adjusted EPS of $3.68, up 29.6%; Q4 net income was boosted by a non-taxable $143.0 million one-time gain on the Burgiss equity investment remeasurement
  3. Full-year 2023 operating revenues of $2.53 billion, up 12.5%, and Adjusted EBITDA of $1.52 billion, up 14.5%
  4. Total Run Rate of $2,686.2 million at December 31, 2023, up 15.8%; Q4 Retention Rate of 93.6%
  5. Free cash flow for Q4 2023 of $367.1 million, up 24.5%; full-year 2023 free cash flow of $1.15 billion
  6. Total debt of $4.5 billion, a 3.0x debt-to-Adjusted EBITDA ratio, and a new $1.25 billion revolving credit facility entered after year-end
  7. Q1 2024 dividend declared at $1.60 per share, an increase of 15.9%; $0.8 billion remains on the share repurchase authorization

03—Questions

Frequently Asked Questions

  1. How did MSCI perform in the fourth quarter of 2023?

    Operating revenues were $690.1 million, up 19.8%, and organic operating revenue growth was 14.7%. Operating income was $370.7 million, up 20.1%, and Adjusted EBITDA was $414.6 million, up 22.3%, with an Adjusted EBITDA margin of 60.1%.

  2. Why did net income rise so sharply in the fourth quarter?

    Net income was $403.4 million, up 87.6%, which the filing attributes partly to a non-taxable, one-time gain of $143.0 million on the remeasurement of MSCI's equity method investment in Burgiss, along with a discrete tax benefit.

  3. What guidance did MSCI give for 2024?

    For full-year 2024, MSCI guided to operating expenses of $1,300 to $1,340 million, Adjusted EBITDA expenses of $1,130 to $1,160 million, an effective tax rate of 18% to 21%, capital expenditures of $95 to $105 million, net cash from operations of $1,330 to $1,380 million, and free cash flow of $1,225 to $1,285 million.

  4. How is MSCI's balance sheet and capital allocation positioned?

    Total debt principal was $4.5 billion at December 31, 2023, a 3.0x ratio to trailing Adjusted EBITDA within a stated target range of 3.0x to 3.5x. After year-end, MSCI amended its credit agreement to provide a $1.25 billion revolving credit facility, and the company repurchased $458.7 million of shares in 2023 through January 29, 2024.

  5. What dividend did MSCI declare?

    On January 29, 2024, the Board declared a cash dividend of $1.60 per share for the first quarter of 2024, an increase of 15.9%, payable February 29, 2024 to holders of record as of February 16, 2024.

04—Continue

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