Income from continuing operations grew 13.9% to $110 million; adjusted EBITDA from continuing operations grew 24.0% to $248 million. Diluted GAAP earnings per share from continuing operations (diluted GAAP EPS) grew 6.7% to $0.64; diluted adjusted EPS from continuing operations increased 19.0% to $0.75.
Net cash provided by operating activities from continuing operations less capital expenditures from continuing operations was $256 million, an increase of 20.0% year to date.Income from continuing operations grew 13.9% to $110 million; adjusted EBITDA from continuing operations grew 24.0% to $248 million. Diluted GAAP earnings per share from continuing operations (diluted GAAP EPS) grew 6.7% to $0.64; diluted adjusted EPS from continuing operations increased 19.0% to $0.75.
Verisk signed a definitive agreement on April 25, 2016 to sell the healthcare business for a total value of $820 million.
Decision Analytics segment revenue from continuing operations grew 46.7% in the first quarter of 2016 and represented approximately 63.5% of total revenue. Decision Analytics organic revenue growth from continuing operations was 4.8%, excluding recent acquisitions (US$312.9m).
- Insurance category revenue increased 11.6%, led by strong growth in claims analytics solutions, with good growth in the quarter in loss quantification, catastrophe modeling, and underwriting solutions. Loss quantification benefited from a true-up of partnership revenue.
- Financial services category revenue decreased 19.0% in the quarter, with solid underlying demand for our core solutions offset by prior-year project revenue that did not recur in 2016. Growth excluding the prior year project revenue was 17.7%.
- Energy and specialized markets category organic revenue declined 3.6%. Including the recently acquired Wood Mackenzie, PCI, and Infield businesses, growth was 361.9%.
Risk Assessment segment revenue grew 5.2% in the quarter ($179.8m)
- Revenue growth in industry-standard insurance programs was 5.2%, resulting primarily from the annual effect of growth in 2016 invoicing effective from January 1 and growth from new solutions.
- Property-specific rating and underwriting information revenue grew 4.9% in the first quarter. Growth was led by an increase in commercial underwriting solutions subscription revenue.
Scott Stephenson, chairman, president, and CEO, said, “Our first-quarter results were solid, with good organic revenue growth, led by our insurance-facing businesses, and industry-leading EBITDA margins. Wood Mackenzie performed well, highlighting the resilience of the business in a challenging environment for our customers. With the recently announced agreement to sell the healthcare business, we are more Verisk-like, with proprietary data driving analytics that are embedded in our customer workflows. This focus will allow us to pursue our distinctive strategy and global ambitions. We are positioned to drive profitable growth and create value for our shareholders over the long term.”
Source: Verisk Earnings Release