Methodology Drivers of asset-based revenue remained consistent as positive equity market performance continued to be a key contributor to growth. ... Audited-Financial-Statement-for-Year-Ended-31-Dec-2019; Annual Reports (Society) Annual Report … To supplement Morningstar's condensed consolidated financial statements presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP), Morningstar uses the following measures considered as non-GAAP by the Securities and Exchange Commission, including: consolidated revenue, excluding DBRS Morningstar and the license amendment. For us, these risks and uncertainties include, among others, liability for any losses that result from an actual or claimed breach of our fiduciary duties; failing to maintain and protect our brand, independence, and reputation; liability related to cybersecurity and the protection of confidential information, including personal information about individuals; failing to differentiate our products and continuously create innovative, proprietary research tools and financial advisor software; inadequacy of our operational risk management and business continuity programs in the event of a material disruptive event; failing to respond to technological change, keep pace with new technology developments, or adopt a successful technology strategy; compliance failures, regulatory action, or changes in laws applicable to our investment advisory or credit ratings operations; volatility in the financial sector, global markets, and global economy and its effect on our revenue from asset-based fees and credit ratings business; trends in the asset management industry, including the increasing adoption of investment strategies and portfolios relying on passively managed investment vehicles and increased industry consolidation; liability relating to the collection or distribution of information and data we collect and produce or errors included therein; an outage of our database, technology-based products and services, or network facilities or the movement of parts of our technology and data infrastructure to the public cloud and other outsourced providers; the failure of acquisitions and other investments to produce the results we anticipate; the failure to recruit, develop, and retain qualified employees; challenges faced by our non-U.S. operations, including the concentration of data and development work at our offshore facilities in China and India; and the failure to protect our intellectual property rights or claims of intellectual property infringement against us. "We continue to make strategic investments for growth across our portfolio through workforce additions in key areas, global facility expansions and improvements, ongoing infrastructure support, and product innovation. Assets under management and advisement in Managed Portfolios increased 13.1% to $73.5 billion as of Dec. 31, 2019. Morningstar Experts; Morningstar Awards ... Email Alerts; Global Contacts; Morningstar 2019 Shareholders’ Meeting. Second-quarter 2019 results reflect the contribution of the new Morningstar Funds Trust, which records revenue and sub-advisory fees on a gross basis. Data as of 6/30/2019 for open-end funds and exchange-traded funds available to investors in the United States. Free cash flow should not be considered an alternative to any measure required to be reported under GAAP (such as cash provided by (used for) operating, investing, and financing activities). My goals are aligned with yours. Overall, long-term global flows (excluding money-market funds) nearly doubled in 2019 to $1 trillion. We're confident that the choices we're making will serve the modern investor well while positioning Morningstar for continued growth. Excluding the impact of the combined credit ratings operations, transaction-based revenue declined by 15.2% due to a decrease in advertising revenue on Morningstar.com. Adjusted operating income declined 1.4%. For the three months and six months ended 2019, transaction-based revenue derived primarily from one-time ratings fees was 67% and 63%, respectively. CHICAGO, Feb. 20, 2020 - Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today announced fourth-quarter and full-year 2019 … consolidated operating income, excluding DBRS Morningstar and the license amendment. DBRS Morningstar results would have been accretive by $0.22 per diluted share, excluding deal-related expenses and amortization. License-based revenue grew 10.2% year over year, supported by ongoing demand for PitchBook in the United States, and positive global contributions from Morningstar Data and Morningstar Direct, with particularly strong growth in continental Europe, the United Kingdom, and Asia. Overall, long-term global flows (excluding money-market funds) nearly doubled in 2019 … Workplace Solutions revenue grew by 4.7% year over year. Before the big event, Morningstar Board Member Jerry House and golf professional Bubba Clark provided the children a fun afternoon on the OGI course. The Company has operations in 27 countries. For us, these risks and uncertainties include, among others, liability for any losses that result from an actual or claimed breach of our fiduciary duties; failing to maintain and protect our brand, independence, and reputation; liability related to cybersecurity and the protection of confidential information, including personal information about individuals; failing to differentiate our products and continuously create innovative, proprietary research tools and financial advisor software; inadequacy of our operational risk management and business continuity programs in the event of a material disruptive event; failing to respond to technological change, keep pace with new technology developments, or adopt a successful technology strategy; compliance failures, regulatory action, or changes in laws applicable to our investment advisory or credit ratings operations; volatility in the financial sector, global markets, and global economy and its effect on our revenue from asset-based fees and credit ratings business; trends in the asset management industry, including the increasing adoption of investment strategies and portfolios relying on passively managed investment vehicles and increased industry consolidation; liability relating to the collection or distribution of information and data we collect and produce or errors included therein; an outage of our database, technology-based products and services, or network facilities or the movement of parts of our technology and data infrastructure to the public cloud and other outsourced providers; the failure of acquisitions and other investments to produce the results we anticipate; the failure to recruit, develop, and retain qualified employees; challenges faced by our non-U.S. operations, including the concentration of data and development work at our offshore facilities in China and India; and the failure to protect our intellectual property rights or claims of intellectual property infringement against us. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers, retirement plan providers and sponsors, and institutional investors in the debt and private capital markets. Given that Morningstar and DBRS operated separately during the Report Period and that Morningstar was separately registered as an NRSRO until December 30, 2019, this Report includes information reported by and about Morningstar … during America’s industrial age in the late 1800s — and built to last — Western & Southern is today among the financially strongest life insurance groups in the world. Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today published its eighth annual Global Fund Flows Report examining worldwide 2019 mutual fund and exchange-traded product (ETP) fund flows. Morningstar will make written responses to selected inquiries available to all investors at the same time in Form 8-Ks furnished to the Securities and Exchange Commission, generally every month. Reconciliation from cash provided by operating activities to free cash flow: ______________________________________________________________________. (1) Revenue for the three months and twelve months ended December 31, 2018 reflects Morningstar Credit Ratings. Measuring Transition Risk in Fund Portfolios White Paper, Integrating ESG Into Morningstar's Equity Research, Integrating ESG Into Morningstar Equity Research: FAQs, The Morningstar Capital Allocation Rating, Introducing the Morningstar Capital Allocation Rating: FAQs, The Morningstar ESG Commitment Level: Our first assessment of 100-plus strategies and 40 asset managers, Morningstar, Inc. Reports Fourth-Quarter, Full-Year 2019 Financial Results, Add: DBRS Morningstar operating loss (income) including deal-related expenses and amortization, http://www.prnewswire.com/news-releases/morningstar-inc-reports-fourth-quarter-full-year-2019-financial-results-301008779.html, Measuring Transition Risk in Fund Portfolios White Paper. CHICAGO, Feb. 20, 2020 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today announced fourth-quarter and full-year 2019 financial results driven by strong revenue growth and cash flow. Primary drivers were higher compensation and benefits, production expenses, stock-based compensation, and sales commissions. consolidated revenue, excluding acquisitions, divestitures, adoption of accounting changes, and the effect of foreign currency translations (organic revenue). Statement of Changes in Beneficial Ownership. “This report is an abridged version of the unaudited semi-annual report established in conformity with the Luxembourg Law of 17 December 2010 on Undertakings for Collective Inve For more information, visit www.morningstar.com/company. Reconciliation from consolidated revenue to revenue excluding DBRS Morningstar and the license amendment: Revenue excluding DBRS Morningstar and the license amendment. While these actions are contributing to an increase in operating expenses, we achieved record revenue and free cash flow in 2019. Frequently Asked Questions Reconciliation from consolidated operating income to adjusted operating income: Reconciliation from consolidated operating margin to adjusted operating margin: Reconciliation from consolidated diluted net income per share to adjusted diluted net income per share: Consolidated diluted net income per share. Morningstar Announces Availability of Proxy Materials for 2019 Annual Shareholders' Meeting, Stocks: NAS:MORN, release date:Apr 05, 2019 cash provided by or used for operating activities less capital expenditures (free cash flow). 1 CHICAGO, Feb. 11, 2020 / / -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today published its eighth annual Global Fund Flows Report examining worldwide 2019 mutual fund and exchange-traded product (ETP) fund flows. For divestitures, we exclude revenue in the prior period for which there is no comparable revenue in the current period. Adjusted operating income, which excludes all M&A-related expenses and amortization, was $57.2 million in the quarter, an increase of 5.3% compared with the prior-year period. The asset … Full-Year 2019 ResultsRevenue for 2019 was $1.2 billion, an increase of 15.6% compared with 2018. Please see the Appendix for information about the data in this report or contact Michael Laske at michael.laske@morningstar.com. We do not undertake to update our forward-looking statements as a result of new information or future events. Net income for 2018 included after-tax gains on sales of a product line and a portion of an equity method investment that totaled $0.28 per diluted share, and a $0.18 per diluted share benefit related to a license amendment. These statements involve known and unknown risks and uncertainties that may cause the events we discuss not to occur or to differ significantly from what we expect. Fourth-Quarter 2019 ResultsFourth-quarter 2019 results include a $3.2 million increase in stock-based compensation, primarily driven by the continued achievement of incentive targets under the PitchBook management bonus plan. DBRS Morningstar contributed 20.6% to operating expense growth, which includes deal-related expenses and amortization and costs related to a pending regulatory settlement. The tables at the end of this press release include a reconciliation of the non-GAAP financial measures used by the Company to comparable GAAP measures and an explanation of why the company uses them. This was a record year for the tournament. While the required integration of rating methodologies temporarily led to lower ratings volume across certain structured finance asset classes in the U.S., there was robust issuance in DBRS Morningstar's key strategic asset classes, such as CMBS and RMBS, along with strong issuance activity and increased market coverage across the structured finance asset classes DBRS Morningstar rates in Europe. consolidated operating income, excluding DBRS Morningstar and the license amendment. Notice of Availability of Proxy Materials PDF Format Download (opens in new window) PDF 81 KB. Morningstar, Inc. Reports Fourth-Quarter, Full-Year 2019 Financial Results . PDF; Form 10K (HTML) Morningstar Inc. does not currently have any hardcopy reports on AnnualReports.com. Morningstar presents organic revenue because the Company believes this non-GAAP measure helps investors better compare period-over-period results. (2) Operating loss (income) for the three months and twelve months ended December 31, 2018 reflects Morningstar Credit Ratings. 2019), and DBRS filed an update to Form NRSRO to add Morningstar as a credit rating affiliate. Annual Reports . For the year ended December 31, 2019, Morningstar Data, Morningstar Direct, and Morningstar Investment Management increased revenue by 8.4%, 9.5%, and 5.7%, respectively, whereas Advisor Workstation revenue declined by 1.5% when excluding the impact of foreign currency. "We're pleased with our integration progress to date and remain encouraged by our unique opportunity to improve transparency in the credit ratings space. This resulted in a $3.2 million favorable impact to revenue and a corresponding increase in the cost of revenue, with no impact on operating income. Excluding the non-recurring revenue benefit from the license amendment in the prior period results, license-based revenue grew 10.0% during the twelve months ended 2019. In the fourth quarter of 2019, organic revenue growth for the other five key product areas was 15.2%, compared to organic revenue growth of 9.7% for Morningstar as a whole. Collectively, these items had a favorable impact of $0.46 per diluted share in 2018. Reconciliation from consolidated operating income to adjusted operating income: Reconciliation from consolidated operating margin to adjusted operating margin: Reconciliation from consolidated diluted net income per share to adjusted diluted net income per share: Consolidated diluted net income per share. A more complete description of these risks and uncertainties can be found in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2018. Production expense included fees paid to sub-advisors relating to the Morningstar Funds Trust and higher cloud-based computing costs. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Fourth-Quarter ResultsRevenue for the fourth quarter of 2019 was $332.4 million, an increase of 26.5% compared with the fourth quarter of 2018, or 9.7% higher on an organic basis. Collectively, these items had a favorable impact of $0.46 per diluted share in 2018. Morningstar Investment Funds - Series 2 Directors' report 30 June 2019 Directors' report (continued) Review of results and operations The investment policy of the Schemes continues to be that detailed in the current product disclosure statements and in accordance with the provisions of the governing documents of the Schemes. Convening Notice and Proxy Statement PDF Format Download (opens in new window) PDF 111 KB. The largest contribution came from a substantial return on equity of 28.2 %. 2019 Annual Report. In 2019, Morningstar Data increased revenue 8.4% year over year in constant currency as we continued to add new data sets to our offerings, particularly in ESG, fixed-income analytics, and health savings … "We're proud of the strides we made in empowering investor success in 2019, including the acquisition of DBRS, the fourth-largest global credit ratings agency," said Kunal Kapoor, Morningstar's chief executive officer. (2) License-based revenue includes Morningstar Data, Morningstar Direct, Morningstar Advisor Workstation, PitchBook, and other similar products. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Integrated Annual Report Year 2019. Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The total contribution of DBRS Morningstar is excluded from organic revenue growth, as going forward it will be difficult to attribute revenue and related revenue growth to each entity on a standalone basis. For the year ended December 31, 2019, Morningstar Data, Morningstar Direct, and Morningstar Investment Management increased revenue by 8.4%, 9.5%, and 5.7%, respectively, … Fourth-quarter operating margin was 11.9%, compared with 18.8% in the prior-year period. Foreign currency translation decreased revenue by $12.3 million, or 1.2%, and operating expenses by $11.2 million, or 1.4%, for the year ended Dec. 31, 2019. Annual Report on Form 20-F PDF Format Download (opens in new window) PDF 3.10 MB. "We continue to make strategic investments for growth across our portfolio through workforce additions in key areas, global facility expansions and improvements, ongoing infrastructure support, and product innovation. Balance Sheet and Capital AllocationAs of Dec. 31, 2019, the Company had cash, cash equivalents, and investments totaling $367.5 million and $502.1 million of long-term debt, compared with cash, cash equivalents, and investments of $395.9 million and $70.0 million of long-term debt as of Dec. 31, 2018. Morningstar is a top provider of independent investment research in the United States and abroad. (5) Revenue for the three months and twelve months ended December 31, 2018 reflects Morningstar Credit Ratings. Morningstar presents certain non-GAAP measures to show the effect of the DBRS acquisition and deal-related amortization and integration expenses, better reflect period-over-period comparisons, and improve overall understanding of the underlying performance of the business absent the impact of the combined DBRS Morningstar operations. In the third quarter of 2019, Morningstar Credit Ratings combined with DBRS to form DBRS Morningstar. DBRS Morningstar operating loss (income) including deal-related expenses and amortization included $8.5 million and $3.4 million of amortization and deal-related expenses, respectively, during the three months ended December 31, 2019 and $17.1 million and $6.5 million of amortization and deal-related expenses, respectively, for the year ended December 31, 2019. While these actions are contributing to an increase in operating expenses, we achieved record revenue and free cash flow in 2019. During the fourth quarter of 2019, the Company repaid $32.8 million of the outstanding balance on its new senior credit facility, for a total of $95.6 million of debt repayment since the close of the DBRS acquisition. (4) Transaction-based revenue includes DBRS Morningstar, Internet advertising sales, and conferences. Belvoir To Beat Annual Profit Expectations On Robust Year To Date ... as management services fee from lettings was up on 2019, while fees from sales remained flat. Excluding the non-recurring revenue benefit from the license amendment in the prior period results, license-based revenue grew 10.0% during the twelve months ended 2019. (1) Revenue for the three months and twelve months ended December 31, 2018 reflects Morningstar Credit Ratings. Morningstar® Advisor Workstation ; Morningstar® Enterprise Components; ... 2019. Revenue for the first six months of 2019 includes revenue from Morningstar Credit Ratings while revenue for the third and fourth quarters of 2019 includes revenue from DBRS Morningstar, the newly combined credit ratings operations. Being Malaysia's Leading Converged Solutions Company, Maxis remains committed to leverage on the best technology to help people, businesses and the nation to Always Be Ahead in a dynamically changing world. Workplace Solutions revenue grew by 4.7% year over year. Since announcing our new … Diluted net income per share declined 17.2% to $3.52 versus $4.25 in 2018, which included the $0.18 per share dilutive impact of DBRS Morningstar. Operating expense increased 23.0% for the year. Average assets under management and advisement increased by 12.1% year over year, while assets linked to Morningstar Indexes grew 44.7%. The analytical integration is now complete for more than 75% of rated asset classes. Reconciliation tables for all non-GAAP measures can be found at the end of this press release.). Benefits expense rose primarily due to higher healthcare costs compared with the prior-year period. Full year new awards in 2019 totaled $3.7 billion, compared to $10.6 billion in 2018. Adjusted operating income, which excludes all M&A-related expenses and amortization, was $57.2 million in the quarter, an increase of 5.3% compared with the prior-year period. Net income in the fourth quarter of 2019 was $27.6 million, or $0.64 per diluted share, as compared with $42.4 million, or $0.99 per diluted share, in the fourth quarter of 2018. In addition, Morningstar presents free cash flow solely as supplemental disclosure to help investors better understand how much cash is available after making capital expenditures. (5) Revenue for the three months and twelve months ended December 31, 2018 reflects Morningstar Credit Ratings. Operating expense increased 37.2% to $292.7 million in the fourth quarter of 2019. This reduced operating income growth by 6.5 percentage points and diluted net income per share by $0.05. Our Interactive Analyst Center has you covered. Fourth-Quarter ResultsRevenue for the fourth quarter of 2019 was $332.4 million, an increase of 26.5% compared with the fourth quarter of 2018, or 9.7% higher on an organic basis. Overall, long-term global flows (excluding money-market funds) nearly doubled in 2019 to $1 trillion. The highlights below summarize key operating metrics as of and for the full year ended Dec. 31, 2019. Reconciliation from consolidated revenue to revenue excluding DBRS Morningstar and the license amendment: Revenue excluding DBRS Morningstar and the license amendment. This press release contains forward-looking statements as that term is used in the Private Securities Litigation Reform Act of 1995. The highlights below summarize key operating metrics as of and for the full year ended Dec. 31, 2019. Net income for 2019 included an after-tax gain of $0.33 per share from the sale of an equity method investment in the third quarter. A more complete description of these risks and uncertainties can be found in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2018. License-based revenue grew 10.2% year over year, supported by ongoing demand for PitchBook in the United States, and positive global contributions from Morningstar Data and Morningstar Direct, with particularly strong growth in continental Europe, the United Kingdom, and Asia. Tax Planning; Personal Finance; Save for College; Save for Retirement; Invest in Retirement Organic revenue growth in 2019 was 8.4%. (1) Revenue by type and key product area revenue includes the effect of foreign currency translations. 37% is the correct figure. I want this to be a document you can use as a reference for how we plan to run GE for the long term. Bloomberg the Company & Its Products The Company & its Products Bloomberg Terminal Demo Request Bloomberg Anywhere Remote Login Bloomberg Anywhere Login Bloomberg Customer Support Customer Support The Company has operations in 27 countries. Steady corporate issuance in Canada also contributed to DBRS Morningstar's overall positive performance. Morningstar Advisor Workstation Morningstar Office Cloud Morningstar Cloud Morningstar Retirement Manager Morningstar Managed Portfolios Morningstar Research 2019 Annual Report. Fourth-quarter operating income was $39.7 million, a decrease of $9.6 million, or 19.5% compared with the prior-year period. Morningstar Direct licenses increased 5.8% to 15,903, and revenue grew 7.8% to $148.6 million, or 9.5% excluding the impact of foreign currency. consolidated operating margin, excluding all M&A related expenses and amortization (adjusted operating margin), consolidated diluted net income per share, excluding all M&A related expenses and amortization (adjusted diluted net income per share), and. Steady corporate issuance in Canada also contributed to DBRS Morningstar's overall positive performance. We also expanded our advisor-focused offerings, which include Goal Bridge, a planning tool that connects financial planning to investment planning, and a new managed accounts solution that helps advisors better serve retirement plans. These are the fruits of our … Free cash flow should not be considered an alternative to any measure required to be reported under GAAP (such as cash provided by (used for) operating, investing, and financing activities). In response to growing global demand for both low-cost and sustainable investment solutions, we made important senior-level hires and continued to innovate in the areas of indexes and ESG. Morningstar's management team uses free cash flow to evaluate its business. Proxy Card PDF Format Download (opens in new window) PDF 45 KB. 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