CHICAGO, April 25, 2012 /PRNewswire/ — Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today announced its first-quarter 2012 financial results. The company reported consolidated revenue of $160.8 million in the first quarter of 2012, a 5.9% increase from $151.8 million in the first quarter of 2011. Consolidated operating income was $30.4 million in the first quarter of 2012, a decrease of 4.4% compared with $31.8 million in the same period a year ago. Net income was $20.1 million, or 40 cents per diluted share, in the first quarter of 2012, compared with $22.5 million, or 44 cents per diluted share, in the first quarter of 2011.
Investment Information Segment: The largest products and services in this segment based on revenue are Morningstar® Data (formerly Licensed Data); Morningstar® Advisor Workstation(SM)( )(including Morningstar Office); Morningstar Direct(SM); and Morningstar.com®, including Premium Memberships and Internet advertising sales.
Revenue was $126.9 million in the first quarter of 2012, up 5.4% from$120.4 million in the prior-year period.
- Morningstar Direct, Morningstar Data, and Advisor Workstation (mainly
Morningstar Office) were the major contributors to organic revenue
growth. Licenses for Morningstar Direct rose 26.9% to 6,460, and Advisor
Workstation licenses were flat.
- Premium Membership subscriptions for Morningstar.com fell 6.8% to
128,697, and revenue for Morningstar.com was flat. Principia
subscriptions were down 10% to 29,604. Revenue for Structured Credit Ratings declined because of fewer new-issue ratings and pricing pressure.
- Operating income was $28.7 million in the first quarter of 2012,
compared with $32.3 million in the same period in 2011. Operating
expense in this segment increased $10.1 million, or 11.5%, primarily
because of higher salary expense and, to a lesser extent, higher bonus
and employee benefit costs.
- Operating margin was 22.6% in the first quarter of 2012 versus 26.8% in
the prior-year period. The margin decrease mainly reflects higher
salary, bonuses, and employee benefits expense as a percentage of
Investment Management Segment: Revenue was $33.8 million in the first quarter of 2012, a 7.9% increase from $31.4 million in the same period in 2011.