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Verisk Analytics 8-K Report, Financial Results (Feb 21, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 21, 2024
Period End
February 21, 2024
Security
VRSK
In the record · 2016–202610-K1110-Q328-K115

VRSK filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 115 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’19Mar ’19
  2. Leadership change8-K · Apr ’21Apr ’21
  3. Deal closed8-K · May ’23May ’23
  4. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed February 21, 2024. Cited figures are marked; the original filing is the authoritative source.

Verisk Analytics, Inc. reported fourth-quarter and full-year 2023 results on February 21, 2024, via a press release furnished as Exhibit 99.1.

Fourth-quarter consolidated revenues were $677.2 milliona, up 7.4% (6.0% on an organic constant currency basis), and full-year revenues were $2,681.4 million, up 7.4% (8.7% OCC). Full-year adjusted EBITDA rose 11.6% to $1,433.5 million, while income from continuing operations fell 26.3% to $768.4 million, reflecting prior-year items and a $38.2 million full-year litigation reserve tied to a former Financial Services segment inquiry (of which $19.0 million was recorded in the fourth quarter). Full-year diluted adjusted EPS grew 14.0% to $5.71, while diluted EPS attributable to Verisk fell 20.3% to $5.22.

Cash generation remained strong: full-year free cash flow was $830.7 millionb, up 5.9%, and net cash provided by operating activities was $1,060.7 million. The company repurchased $250 million of shares in the fourth quarter, had $641.5 million remaining under its authorization at year-end, and the Board approved an additional $1.0 billion repurchase authorization on February 14, 2024.

The Board also approved a quarterly dividend of 39 cents per share, a 15% increase, payable March 29, 2024. Management issued fiscal 2024 guidance calling for revenue of $2,840 million to $2,900 millionc, adjusted EBITDA of $1,540 million to $1,600 million, an adjusted EBITDA margin of 54.0% to 55.0%, and diluted adjusted EPS of $6.30 to $6.60, along with capital expenditures of $240 million to $260 million.

02—Key points

Key Highlights

  1. Full-year 2023 revenues of $2,681.4 million, up 7.4% reported and 8.7% on an organic constant currency basis.
  2. Full-year 2023 adjusted EBITDA of $1,433.5 million, up 11.6%, with an adjusted EBITDA margin of 53.5%.
  3. Income from continuing operations fell 26.3% to $768.4 million, and diluted EPS attributable to Verisk fell 20.3% to $5.22; the Q4 decline reflected a $19.0 million litigation reserve, a prior-year one-time tax benefit of about $30.3 million, and higher depreciation.
  4. Diluted adjusted EPS rose 14.0% to $5.71 for the full year, and free cash flow increased 5.9% to $830.7 million.
  5. Share repurchases totaled $250 million in Q4 2023; a new $1.0 billion authorization was approved on February 14, 2024, on top of $641.5 million remaining at year-end.
  6. Quarterly dividend increased 15% to 39 cents per share, payable March 29, 2024.
  7. Fiscal 2024 guidance: revenue of $2,840-$2,900 million, adjusted EBITDA of $1,540-$1,600 million, and diluted adjusted EPS of $6.30-$6.60.

03—Questions

Frequently Asked Questions

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

    Fourth-quarter revenues were $677.2 million, up 7.4% (6.0% on an OCC basis). Adjusted EBITDA rose 9.0% to $362.0 million, while income from continuing operations declined 15.5% to $182.3 million, mainly due to a $19.0 million litigation reserve, a one-time $30.3 million tax benefit in the prior-year quarter, and higher depreciation.

  2. Why did GAAP earnings decline while adjusted results grew?

    The filing attributes the GAAP decline to a $38.2 million full-year litigation reserve tied to an indemnification for an ongoing inquiry related to the former Financial Services segment, the prior-year one-time tax benefit, and higher depreciation from internally developed projects placed in service. Adjusted EBITDA and diluted adjusted EPS, which exclude certain items, grew 11.6% and 14.0% respectively for the full year.

  3. What is Verisk's capital return plan?

    Verisk repurchased $250 million of shares in Q4 2023 through an accelerated share repurchase program, with $641.5 million remaining under its authorization at December 31, 2023. The Board approved an additional $1.0 billion authorization on February 14, 2024. The quarterly dividend was raised to 39 cents per share, a 15% increase, payable March 29, 2024.

  4. What guidance did Verisk give for 2024?

    For fiscal 2024, Verisk guided to revenue of $2,840 million to $2,900 million, adjusted EBITDA of $1,540 million to $1,600 million, an adjusted EBITDA margin of 54.0% to 55.0%, and diluted adjusted EPS of $6.30 to $6.60. It also expects fixed asset depreciation and amortization of $210 million to $240 million, a 23.0% to 25.0% effective tax rate, and capital expenditures of $240 million to $260 million.

  5. How strong was Verisk's cash flow in 2023?

    Net cash provided by operating activities was $1,060.7 million for 2023, up 0.2%, and free cash flow was $830.7 million, up 5.9%. Free cash flow is calculated as operating cash flow minus capital expenditures, which were $230.0 million for the year.

04—Continue

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