• Revenue grew 9.0% to $599 million; organic constant currency revenue growth was 4.7%. Normalizing for the revenue associated with exceptional storm activity and a nonrecurring project in the prior year period, organic constant currency revenue would have grown 7.5%.
  • Net income was $166 million; adjusted EBITDA, a non-GAAP measure, was $284 million.
  • Net income grew 37.5%; organic constant currency adjusted EBITDA growth was 1.6%. Normalizing for the revenue associated with exceptional storm activity and a nonrecurring project in the prior year period, organic constant currency adjusted EBITDA would have grown 7.1%.
  • Diluted GAAP earnings per share (GAAP EPS) were $0.99; diluted adjusted earnings per share (adjusted EPS), a non-GAAP measure, were $1.08.
  • Net cash provided by operating activities was $761 million year-to-date. Free cash flow, a non-GAAP measure, was $607 million year-to-date.
  • The company repurchased $102 million of its shares for the quarter ended September 30, 2018.

Scott Stephenson, chairman, president, and CEO, said, “We are delighted to deliver another strong quarter of growth across our industry verticals, demonstrating the success of our strategy and the value of our distinctives. We are particularly pleased with the progress and momentum demonstrated in our Energy and Specialized Markets and Financial Services segments. Engagement with clients on new ideas remains exceptional, and we continue to be enthusiastic about the opportunities in front of us.”

Insurance segment revenue grew 8.0% in the third quarter of 2018 and 5.5% in organic constant currency. Excluding the impact of approximately $8 million in storm-related revenue in the third quarter of 2017, Insurance revenue on an organic constant currency basis would have grown 7.7% in the quarter.

  • Underwriting & rating revenue increased 8.9% in the quarter and 6.3% on an organic constant currency basis, resulting primarily from increases within its underwriting and catastrophe modeling solutions revenue.
  • Claims revenue grew 6.3% in the quarter and 4.0% on an organic constant currency basis. Growth was driven by its claims analytics and repair cost estimating solutions revenue. Excluding the impact of approximately $8 million in storm-related revenue in the third quarter of 2017, claims revenue on an organic constant currency basis would have grown 10.6% in the quarter.

Energy and Specialized Markets segment revenue increased 14.6% in the quarter and 6.3% on an organic constant currency basis, as the energy business’s end markets have continued to improve. Our consulting and research businesses both experienced growth. The company also had positive contributions from its environmental health and safety services business.

Financial Services segment revenue increased 4.0% in the quarter and decreased 9.2% on an organic constant currency basis. Excluding the impact of approximately $6 million in nonrecurring project revenue in the third quarter of 2017, Financial Services revenue on an organic constant currency basis would have grown 9.1% in the quarter.

Source: Verisk Earnings Release