Morningstar, Inc. Reports Third-Quarter 2020 Financial Results

About this update from Morningstar, Inc.

[{"type":"text","content":"CHICAGO, Oct. 28, 2020 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today reported third-quarter 2020 financial results. \n\"We are pleased with our 2020 performance thus far,\" said Kunal Kapoor, Morningstar's chief executive officer. \"Full credit goes to my wonderful colleagues, whose incredible levels of engagement and effort continue to make a difference as we remain focused on fulfilling our mission and keeping our business and employees healthy during this challenging period. In addition, we were thrilled to welcome the Sustainalytics team to our organization. We've made notable progress on our integration and together continue to see ample opportunities for meeting investor needs. As the current environment sheds light on global risks such as climate change, population health, and human capital concerns, investor interest in ESG factors is rising across our business.\"\nThird-Quarter Financial Highlights\nRevenue increased 13.8% to $357.2 million; organic revenue1 increased 8.0%. Operating income decreased 10.7% to $44.3 million; adjusted operating income increased by 42.3%, excluding intangible amortization expense and all mergers & acquisitions (M&A)-related expenses. Diluted net income per share increased 54.4% to $1.76 versus $1.14 in the prior period. The current period included a $1.18 cents per share holding gain related to Morningstar's previously held equity interest in Sustainalytics. The prior period included a $0.33 cents per share gain on a previously held equity interest. Adjusted diluted net income per share increased by 46.2% to $1.55, excluding the non-operating gains, intangible amortization expense, and all other M&A-related expenses. Cash provided by operating activities decreased 11.6% to $93.4 million, primarily reflecting the timing of working capital. Free cash flow decreased by 17.3% to $70.8 million. Year-to-Date Financial Highlights\nRevenue increased 19.2% to $1.0 billion; organic revenue increased 8.4%. Operating income remained relatively flat at $150.1 million; adjusted operating income increased by 31.9%. Diluted net income per share increased 18.7% to $3.43 versus $2.89 in the prior period. Adjusted diluted net income per share increased by 26.9%. Cash provided by operating activities increased by 7.1% to $269.7 million. Free cas...

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