Verisk (Nasdaq:VRSK), a leading data analytics provider, has announced results for the second quarter ended June 30, 2020.
- Consolidated revenues were $679 million, up 4.0%, and up 1.1% on an organic constant currency (OCC) basis for the second quarter of 2020.
- Net income was $179 million, up 19.0% for the second quarter of 2020. Adjusted EBITDA, a non-GAAP measure, was $348 million, up 14.5%, and up 12.4% on an OCC basis.
- Diluted GAAP earnings per share (diluted EPS) were $1.08 for the second quarter of 2020. Diluted adjusted earnings per share (diluted adjusted EPS), a non-GAAP measure, were $1.29.
- Net cash provided by operating activities was $250 million, up 24.6% for the second quarter of 2020. Free cash flow, a non-GAAP measure, was $193 million, up 25.7%.
- The company paid a cash dividend of 27 cents per share on June 30, 2020. The company’s Board of Directors approved a cash dividend of 27 cents per share payable on September 30, 2020.
- The company repurchased $75 million of its shares during the second quarter of 2020.
- The company currently has $995 million of undrawn capacity on its revolver and no meaningful maturities until May 2021.
Scott Stephenson, chairman, president, and CEO, said, “Our second quarter results reflect the enduring strength and stability of our business model, and the laser-focus of our over 9,000 Verisk teammates on delivering for our customers as they face new challenges in this environment. Our long-term objectives are unchanged. We remain committed to offering a great customer experience, protecting the health and well-being of our teammates, and continuing to drive our innovation agenda.”
Consolidated revenues increased 4.0%, and 1.1% on an OCC basis, for second-quarter 2020. Normalizing for the impact of the injunction on roof measurement solutions, which adjusts for $8 million of associated revenue in the prior-year period, OCC revenue would have grown 2.4% in second-quarter 2020.
The company has analyzed its solutions and services to assess the impact of COVID-19 on its revenue streams. It has not identified any material impact of COVID-19 on approximately 85% of its revenues at this point, as much of these revenues are subscription-based in nature and subject to long-term contracts. Normalizing for the impact of the injunction on the roof measurement solutions, these revenues would have grown approximately 6.5% on an OCC basis in the second quarter of 2020. Of the remaining 15%, the company has identified specific solutions and services, largely transactional in nature, that are being negatively impacted by COVID-19. These revenues declined approximately 20% on an OCC basis in second-quarter 2020 compared to the prior-year period.
Source: Verisk Earnings Release
