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8-K - FORM 8-K - Verisk Analytics, Inc.d574418d8k.htm

Exhibit 99.1

 

LOGO

Verisk Analytics, Inc., Reports Second-Quarter 2013 Financial Results

Delivers 12.9% Revenue Growth and 17.0% Diluted Adjusted EPS Growth

JERSEY CITY, N.J., July 30, 2013 — Verisk Analytics, Inc. (Nasdaq:VRSK), a leading source of information about risk, today announced results for the fiscal quarter ended June 30, 2013.

Financial Highlights

See Tables 4 and 5 for a reconciliation of non-GAAP financial measures to the relevant GAAP measures.

 

   

Diluted GAAP earnings per share (diluted GAAP EPS) were $0.49 for second-quarter 2013. Diluted adjusted earnings per share (diluted adjusted EPS) were $0.55 for second-quarter 2013, an increase of 17.0% versus the same period in 2012.

 

   

Total revenue increased 12.9% in second-quarter 2013 compared with second-quarter 2012. Excluding the impact of recent acquisitions, revenue grew 7.8% for second-quarter 2013. Revenue growth in the second-quarter was driven by a 16.6% increase in Decision Analytics revenue, with additional contribution from the 7.0% growth in Risk Assessment revenue.

 

   

EBITDA increased 13.3% to $185.6 million for second-quarter 2013, with an EBITDA margin of 44.1%.

 

   

Net income was $84.2 million for second-quarter 2013 and adjusted net income was $94.9 million, an increase of 14.8% and 17.6%, respectively, versus the comparable period in 2012.

 

   

In second-quarter 2013, the company repurchased a total of $116.1 million of its common stock under its existing repurchase program. As of June 30, 2013, the company had $306.6 million remaining under its share repurchase authorization, including the incremental $300 million authorization announced on June 20.

Scott Stephenson, president and chief executive officer, said, “Second-quarter results were solid and reflected increased organic growth. This strength is a result of the commitment and hard work of our leadership and their teams. Our focus on analytic solutions allows our customers to leverage the power of the increased volume of data available to understand the changing landscape of risk. We are proud to partner with our customers and continue to invest in developing new and enhanced solutions to meet their needs, both in the United States and other parts of the world.

“Consistent with our expectations, we accelerated our insurance solutions growth in the quarter. Our healthcare business continues to deliver excellent results and build for the future. We continue to execute our unified healthcare platform strategy and solutions that respond to the changing nature of risk sharing among industry participants.

“Financial services also remains an area in which we can build on the success of our payments solutions to date. Argus continues to exceed our expectations and be a thought leader within our firm for customer collaboration,” concluded Stephenson.

 

1


Table 1: Summary of Results for 2013

(in thousands, except per share amounts)

 

     Three Months Ended            Six Months Ended         
     June 30,            June 30,         
     2013      2012      Change     2013      2012      Change  

Revenues

   $ 421,320       $ 373,226         12.9   $ 824,643       $ 719,727         14.6

EBITDA

   $ 185,638       $ 163,805         13.3   $ 365,339       $ 323,432         13.0

Net income

   $ 84,205       $ 73,331         14.8   $ 164,716       $ 147,932         11.3

Adjusted net income

   $ 94,867       $ 80,643         17.6   $ 186,046       $ 160,396         16.0

Diluted GAAP EPS

   $ 0.49       $ 0.43         14.0   $ 0.95       $ 0.86         10.5

Diluted adjusted EPS

   $ 0.55       $ 0.47         17.0   $ 1.08       $ 0.93         16.1

Revenue

Revenue grew 12.9% for the quarter ended June 30, 2013. Excluding the effect of recent acquisitions (Argus Information & Advisory Services and Aspect Loss Prevention), revenue grew 7.8% in the second-quarter of 2013. Overall revenue growth was the result of continued double-digit growth in Decision Analytics and single-digit growth in Risk Assessment. For second-quarter 2013, Decision Analytics revenue represented approximately 63% of total revenue.

Table 2A: Decision Analytics Revenues by Category

(in thousands)

 

     Three Months Ended            Six Months Ended         
     June 30,            June 30,         
     2013      2012      Change     2013      2012      Change  

Insurance

   $ 133,785       $ 122,210         9.5   $ 260,334       $ 238,546         9.1

Financial services

     50,529         35,299         43.1     94,437         69,574         35.7

Healthcare

     61,087         50,381         21.3     120,136         80,829         48.6

Specialized markets

     21,660         21,147         2.4     42,864         41,620         3.0
  

 

 

    

 

 

      

 

 

    

 

 

    

Total Decision Analytics

   $ 267,061       $ 229,037         16.6 %    $ 517,771       $ 430,569         20.3 % 
  

 

 

    

 

 

      

 

 

    

 

 

    

Within the Decision Analytics segment, revenue grew 16.6% for second-quarter 2013, and growth excluding recent acquisitions was 8.3%. Growth in the quarter was driven by strong increases in healthcare revenue. Accelerated growth from the insurance revenue category also contributed to second-quarter growth, as did the revenue from the acquisition of Argus, which is reported in the financial services category.

Within the insurance category, revenue growth was 9.5% for the second-quarter of 2013 and 8.9% excluding the recent acquisition of Aspect. This growth was driven by strong growth in underwriting solutions and continued good growth in catastrophe modeling solutions. Insurance fraud claims solutions and loss quantification solutions also added to revenue growth. Overall growth was driven by increased adoption of existing and new solutions and annual invoice increases for certain solutions.

In the financial services category, revenue increased 43.1% in second-quarter 2013 but declined 8.9% after adjusting for the acquisition of Argus. The decline in mortgage revenue within the financial services category reflected continued lower volumes in forensic audit solutions but was partially offset by growth in underwriting and appraisal solutions.

In the healthcare category, revenue in the second-quarter grew 21.3%, all organic. Revenue growth reflected continued expansion of solutions sold to existing customers as well as the addition of new customers. Beginning this quarter, MediConnect Global, acquired in March 2012 and part of revenue and quality intelligence solutions, is included in organic growth.

In the specialized markets category, revenue grew 2.4% in second-quarter 2013. Growth in weather and climate analytics was affected by lower growth in government contracts. Growth in environmental health and safety solutions was driven by ongoing customer agreements moderated by lower volumes of customer implementation projects.

 

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Table 2B: Risk Assessment Revenues by Category

(in thousands)

 

     Three Months Ended            Six Months Ended         
     June 30,            June 30,         
     2013      2012      Change     2013      2012      Change  

Industry-standard insurance programs

   $ 117,289       $ 111,730         5.0   $ 233,739       $ 224,142         4.3

Property-specific rating and underwriting information

     36,970         32,459         13.9     73,133         65,016         12.5
  

 

 

    

 

 

      

 

 

    

 

 

    

Total Risk Assessment

   $ 154,259       $ 144,189         7.0 %    $ 306,872       $ 289,158         6.1 % 
  

 

 

    

 

 

      

 

 

    

 

 

    

Within the Risk Assessment segment, revenue grew 7.0% for the quarter. Revenue growth in industry-standard insurance programs was 5.0%, resulting primarily from the annual effect of growth in 2013 invoices effective from January 1.

Property-specific rating and underwriting information revenue grew 13.9% in the second-quarter. Growth was due to new sales resulting in higher committed volumes from certain customers as well as incremental revenue contributions due to the expiration of a revenue-sharing agreement with a technology provider in fourth-quarter 2012.

Cost of Revenue

Cost of revenue increased 18.8% in second-quarter 2013 and 12.3% excluding recent acquisitions compared with second-quarter 2012. The year-over-year increase relates primarily to additional investments in people and technology, especially in Decision Analytics in support of the growth of the business.

For second-quarter 2013, cost of revenue increased 7.0% for Risk Assessment and increased 24.0% for Decision Analytics (14.6% excluding recent acquisitions), driven by additional headcount to support new solutions. Growth in Decision Analytics cost of revenue was also influenced by investments for future solution development.

Selling, General, and Administrative

Selling, general, and administrative expense, or SG&A, decreased 2.1% in second-quarter 2013 and decreased 4.0% excluding recent acquisitions. The decrease relates primarily to lower stock-based compensation expenses associated with employees who have reached retirement age, partially offset by higher headcount in Decision Analytics in support of the growth of the business.

In second-quarter 2013, SG&A decreased 14.4% for Risk Assessment. SG&A grew 5.0% for Decision Analytics (2.1% excluding recent acquisitions).

 

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EBITDA

For second-quarter 2013, consolidated EBITDA grew 13.3% to $185.6 million, with a consolidated EBITDA margin of 44.1%.

Table 3: Segment EBITDA

(in thousands)

 

     Three Months Ended           Six Months Ended        
     June 30,           June 30,        
     2013     2012     Change     2013     2012     Change  

Decision Analytics

   $ 99,308      $ 87,706        13.2   $ 192,931      $ 166,963        15.6

EBITDA margin

     37.2     38.3       37.3     38.8  

Risk Assessment

   $ 86,330      $ 76,099        13.4   $ 172,408      $ 156,469        10.2

EBITDA margin

     56.0     52.8       56.2     54.1  

Total EBITDA

   $ 185,638      $ 163,805        13.3 %    $ 365,339      $ 323,432        13.0 % 

EBITDA margin

     44.1     43.9       44.3     44.9  

Decision Analytics EBITDA grew 13.2% in second-quarter 2013 and Risk Assessment EBITDA grew 13.4% versus the same period in the previous year, as shown in Table 3.

The second-quarter 2013 EBITDA margin in Risk Assessment increased to 56.0% from 52.8% in second-quarter 2012 as a result of the previously discussed revenue growth and nearly flat expenses.

The second-quarter 2013 EBITDA margin for Decision Analytics decreased to 37.2% from 38.3% in second-quarter 2012, as margin expansion in existing solutions was offset by continuing investment in innovation.

Net Income and Adjusted Net Income

Net income increased 14.8% in second-quarter 2013 driven by growth in the business, but partially offset by increased interest expense and increased amortization associated with acquisitions. Adjusted net income grew 17.6% for second-quarter 2013. The table below sets forth a reconciliation of net income to adjusted net income and adjusted EPS based on historical results.

Table 4: Net Income and Adjusted Net Income

(in thousands, except per share amounts)

 

     Three Months Ended           Six Months Ended        
     June 30,           June 30,        
     2013     2012     Change     2013     2012     Change  

Net Income

   $ 84,205      $ 73,331        14.8   $ 164,716      $ 147,932        11.3

plus: Amortization of intangibles

     17,196        12,187          34,403        20,774     

less: Income tax effect on amortization of intangibles

     (6,534     (4,875       (13,073     (8,310  
  

 

 

   

 

 

     

 

 

   

 

 

   

Adjusted net income

   $ 94,867      $ 80,643        17.6 %    $ 186,046      $ 160,396        16.0 % 
  

 

 

   

 

 

     

 

 

   

 

 

   

Basic adjusted EPS

   $ 0.56      $ 0.49        14.3   $ 1.11      $ 0.97        14.4
  

 

 

   

 

 

     

 

 

   

 

 

   

Diluted adjusted EPS

   $ 0.55      $ 0.47        17.0   $ 1.08      $ 0.93        16.1
  

 

 

   

 

 

     

 

 

   

 

 

   

Weighted average shares outstanding

            

Basic

     168,147,069        165,946,009          168,112,829        165,391,500     
  

 

 

   

 

 

     

 

 

   

 

 

   

Diluted

     172,467,688        171,901,349          172,614,164        171,626,084     
  

 

 

   

 

 

     

 

 

   

 

 

   

Net Cash Provided by Operating Activities and Capital Expenditures

Net cash provided by operating activities was $246.7 million, an increase of $59.3 million, or 31.6%, for the six-month period ended June 30, 2013, compared with the same period in 2012. Cash provided by operations as reported was affected by the timing of excess tax benefits from exercised stock options in first-quarter 2013 and by a $72.0 million voluntary pension contribution in second-quarter 2012. Adjusted for those items, growth for the six-month period ended June 30, 2013, was 17.4%.

 

4


The increase in cash provided by operating activities was the result of a $43.8 million increase generated by improved profitability of the business, a $6.8 million decrease in working capital, and $86.7 million from pension and post-retirement benefits including the voluntary pension contribution in 2012. This was partially offset by a $12.4 million increase in interest paid due to higher debt levels and an increase of $65.6 million in taxes, including the timing of excess tax benefits from exercised stock options in first-quarter 2013 and the tax benefit related to the voluntary pension contribution in 2012.

Capital expenditures were $64.1 million in the six months ended June 30, 2013, an increase of $26.1 million over the same period in 2012. Capital expenditures were 7.8% of revenue for the six months ended June 30, 2013. Net cash provided by operating activities less capital expenditures represented 50.0% of EBITDA in the first six months of 2013. Adjusted for the timing of excess tax benefits from exercised stock options in first-quarter 2013 and the voluntary pension contribution in second-quarter 2012, net cash provided by operating activities less capital expenditures increased 7.8% to $218.7 million, representing 59.9% of EBITDA for the first six months of 2013.

Share Repurchases

The company continued to balance its internal investment and acquisition initiatives with share repurchases. In second-quarter 2013, the company repurchased shares for a total cost of $116.1 million at an average price of $59.71. On June 20, 2013, the company announced an additional $300 million authorization. At June 30, 2013, the company had $306.6 million remaining under its share repurchase authorization.

Conference Call

Verisk’s management team will host a live audio webcast on Wednesday, July 31, 2013, at 8:30 a.m. Eastern time (5:30 a.m. Pacific time) to discuss the financial results and business highlights. All interested parties are invited to listen to the live event via webcast on the Verisk investor website at http://investor.verisk.com. The discussion is also available through dial-in number 1-877-755-3792 for U.S./Canada participants or 706-758-8912 for international participants.

A replay of the webcast will be available for 30 days on the Verisk investor website and also through the conference call number 1-855-859-2056 for U.S./Canada participants or 404-537-3406 for international participants using Conference ID # 16903623.

About Verisk Analytics

Verisk Analytics (Nasdaq:VRSK) is a leading provider of information about risk to professionals in insurance, healthcare, financial services, government, and risk management. Using advanced technologies to collect and analyze billions of records, Verisk Analytics draws on vast industry expertise and unique proprietary data sets to provide predictive analytics and decision support solutions in fraud prevention, actuarial science, insurance coverages, fire protection, catastrophe and weather risk, data management, and many other fields. In the United States and around the world, Verisk Analytics helps customers protect people, property, and financial assets. For more information, visit www.verisk.com.

Forward-Looking Statements

This release contains forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “target,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue” or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance, or achievements.

 

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Other factors that could materially affect actual results, levels of activity, performance, or achievements can be found in Verisk’s quarterly reports on Form 10-Q, annual reports on Form 10-K, and current reports on Form 8-K filed with the Securities and Exchange Commission. If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement in this release reflects our current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to our operations, results of operations, growth strategy, and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise.

Notes Regarding the Use of Non-GAAP Financial Measures

The company has provided certain non-GAAP financial information as supplemental information regarding its operating results. These measures are not in accordance with, or an alternative for, U.S. GAAP and may be different from non-GAAP measures reported by other companies. The company believes that its presentation of non-GAAP measures, such as EBITDA, EBITDA margin, adjusted net income, and adjusted EPS, provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. In addition, the company’s management uses these measures for reviewing the financial results of the company and for budgeting and planning purposes.

EBITDA

Table 5 below sets forth a reconciliation of net income to EBITDA based on our historical results:

Table 5: EBITDA Reconciliation

(in thousands)

 

     Three Months Ended            Six Months Ended         
     June 30,            June 30,         
     2013      2012      Change     2013      2012      Change  

Net income

   $ 84,205       $ 73,331         14.8   $ 164,716       $ 147,932         11.3

Depreciation and amortization of fixed and intangible assets

     34,007         25,277         34.5     66,428         45,508         46.0

Interest expense

     19,704         17,377         13.4     39,794         33,762         17.9

Provision for income taxes

     47,722         47,820         (0.2 %)      94,401         96,230         (1.9 %) 
  

 

 

    

 

 

      

 

 

    

 

 

    

EBITDA

   $ 185,638       $ 163,805         13.3 %    $ 365,339       $ 323,432         13.0 % 
  

 

 

    

 

 

      

 

 

    

 

 

    

EBITDA is a financial measure that management uses to evaluate the performance of our segments. In all periods shown here and going forward, the company defines “EBITDA” as net income before interest expense, income taxes, and depreciation and amortization of fixed and intangible assets. In previous periods, this measure also excluded investment income and realized gain on securities, net.

Although EBITDA is frequently used by securities analysts, lenders, and others in their evaluation of companies, EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our statement of cash flow reported under U.S. GAAP. Management uses EBITDA in conjunction with traditional U.S. GAAP operating performance measures as part of its overall assessment of company performance. Some of these limitations are as follows:

 

   

EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments.

 

   

EBITDA does not reflect changes in, or cash requirement for, our working capital needs.

 

   

Although depreciation and amortization are noncash charges, the assets being depreciated and amortized often will have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements.

 

   

Other companies in our industry may calculate EBITDA differently than we do, limiting the usefulness of their calculations as comparative measures.

Attached Financial Statements

Please refer to the full Form 10-Q filing for the complete financial statements and related notes.

 

6


VERISK ANALYTICS, INC.

CONSOLIDATED BALANCE SHEETS

As of June 30, 2013 (Unaudited) and December 31, 2012

 

     As of June 30, 2013     As of December 31, 2012  
(In thousands, except for share and per share data)    (unaudited)    

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 172,587      $ 89,819   

Available-for-sale securities

     4,254        4,883   

Accounts receivable, net of allowance for doubtful accounts of $4,936 and $4,753, respectively

     186,549        178,430   

Prepaid expenses

     31,048        21,946   

Deferred income taxes, net

     10,463        10,397   

Income taxes receivable

     54,013        45,975   

Other current assets

     34,695        39,109   
  

 

 

   

 

 

 

Total current assets

     493,609        390,559   

Noncurrent assets:

    

Fixed assets, net

     185,928        154,084   

Intangible assets, net

     486,532        520,935   

Goodwill

     1,249,271        1,247,459   

Other assets

     24,011        47,299   
  

 

 

   

 

 

 

Total assets

   $ 2,439,351      $ 2,360,336   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable and accrued liabilities

   $ 157,961      $ 187,648   

Short-term debt and current portion of long-term debt

     137,870        195,263   

Pension and postretirement benefits, current

     1,734        1,734   

Fees received in advance

     287,571        200,705   
  

 

 

   

 

 

 

Total current liabilities

     585,136        585,350   

Noncurrent liabilities:

    

Long-term debt

     1,266,910        1,266,162   

Pension benefits

     32,138        38,655   

Postretirement benefits

     2,267        2,627   

Deferred income taxes, net

     135,257        133,761   

Other liabilities

     52,138        78,190   
  

 

 

   

 

 

 

Total liabilities

     2,073,846        2,104,745   
  

 

 

   

 

 

 

Commitments and contingencies

    

Stockholders’ equity:

    

Class A common stock, $.001 par value; 1,200,000,000 shares authorized; 544,003,038 shares issued and 167,629,024 and 167,727,073 outstanding, respectively

     137        137   

Unearned KSOP contributions

     (402     (483

Additional paid-in capital

     1,116,948        1,044,746   

Treasury stock, at cost, 376,374,014 and 376,275,965 shares, respectively

     (1,733,283     (1,605,376

Retained earnings

     1,070,443        905,727   

Accumulated other comprehensive losses

     (88,338     (89,160
  

 

 

   

 

 

 

Total stockholders’ equity

     365,505        255,591   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,439,351      $ 2,360,336   
  

 

 

   

 

 

 

 

7


VERISK ANALYTICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the Three Months and Six Months Ended June 30, 2013 and 2012

 

(In thousands, except for share and per share data)    Three Months Ended June 30,     Six Months Ended June 30,  
     2013     2012     2013     2012  

Revenues

   $ 421,320      $ 373,226      $ 824,643      $ 719,727   
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

        

Cost of revenues (exclusive of items shown separately below)

     174,663        147,074        339,112        280,404   

Selling, general and administrative

     61,152        62,473        120,180        116,452   

Depreciation and amortization of fixed assets

     16,811        13,090        32,025        24,734   

Amortization of intangible assets

     17,196        12,187        34,403        20,774   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

     269,822        234,824        525,720        442,364   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     151,498        138,402        298,923        277,363   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expense):

        

Interest expense

     (19,704     (17,377     (39,794     (33,762

Investment income

     40        156        88        261   

Realized gain (loss) on available-for-sale securities, net

     93        (30     (100     300   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other expense, net

     (19,571     (17,251     (39,806     (33,201
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     131,927        121,151        259,117        244,162   

Provision for income taxes

     (47,722     (47,820     (94,401     (96,230
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 84,205      $ 73,331      $ 164,716      $ 147,932   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income per share

   $ 0.50      $ 0.44      $ 0.98      $ 0.89   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net income per share

   $ 0.49      $ 0.43      $ 0.95      $ 0.86   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

        

Basic

     168,147,069        165,946,009        168,112,829        165,391,500   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     172,467,688        171,901,349        172,614,164        171,626,084   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

8


VERISK ANALYTICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Six Months Ended June 30, 2013 and 2012

 

(In thousands)    For the Six Months Ended June 30,  
     2013     2012  

Cash flows from operating activities:

    

Net income

   $ 164,716      $ 147,932   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization of fixed assets

     32,025        24,734   

Amortization of intangible assets

     34,403        20,774   

Amortization of debt issuance costs and original issue discount

     1,368        1,096   

Allowance for doubtful accounts

     633        461   

KSOP compensation expense

     7,357        6,186   

Stock based compensation

     10,955        13,653   

Realized loss (gain) on available-for-sale securities, net

     100        (300

Deferred income taxes

     1,007        (535

Loss on disposal of fixed assets

     428        21   

Excess tax benefits from exercised stock options

     (63,934     (31,624

Other operating activities, net

     28        (18

Changes in assets and liabilities, net of effects from acquisitions:

    

Accounts receivable

     (8,752     (13,652

Prepaid expenses and other assets

     (1,696     4,289   

Income taxes

     24,171        59,929   

Accounts payable and accrued liabilities

     (12,833     (24,124

Fees received in advance

     86,866        77,038   

Pension and postretirement benefits

     (4,099     (90,808

Other liabilities

     (26,052     (7,617
  

 

 

   

 

 

 

Net cash provided by operating activities

     246,691        187,435   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Acquisitions, net of cash acquired of $0 and $29,387, respectively

     (983     (331,330

Purchase of non-controlling interest in non-public companies

     —          (2,000

Earnout payments

     —          (250

Proceeds from release of acquisition related escrows

     192        —     

Escrow funding associated with acquisitions

     —          (17,000

Purchases of fixed assets

     (63,505     (36,532

Purchases of available-for-sale securities

     (4,967     (1,128

Proceeds from sales and maturities of available-for-sale securities

     5,826        1,203   

Other investing activities, net

     439        —     
  

 

 

   

 

 

 

Net cash used in investing activities

     (62,998     (387,037
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Repayment of current portion of long-term debt

     (45,000     —     

(Repayment) proceeds of short-term debt, net

     (10,000     150,000   

Excess tax benefits from exercised stock options

     63,934        31,624   

Repurchase of common stock

     (135,595     (106,305

Proceeds from stock options exercised

     30,528        33,453   

Other financing activities, net

     (4,111     (3,441
  

 

 

   

 

 

 

Net cash (used in) provided by financing activities

     (100,244     105,331   
  

 

 

   

 

 

 

Effect of exchange rate changes

     (681     (134
  

 

 

   

 

 

 

Increase (decrease) in cash and cash equivalents

     82,768        (94,405

Cash and cash equivalents, beginning of period

     89,819        191,603   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 172,587      $ 97,198   
  

 

 

   

 

 

 

Supplemental disclosures:

    

Taxes paid

   $ 71,029      $ 37,736   
  

 

 

   

 

 

 

Interest paid

   $ 39,029      $ 26,619   
  

 

 

   

 

 

 

Noncash investing and financing activities:

    

Repurchase of common stock included in accounts payable and accrued liabilities

   $ 3,550      $ 1,936   
  

 

 

   

 

 

 

Deferred tax asset (liability) established on date of acquisition

   $ 343      $ (40,358
  

 

 

   

 

 

 

Capital lease obligations

   $ 2,106      $ 3,043   
  

 

 

   

 

 

 

Capital expenditures included in accounts payable and accrued liabilities

   $ 3,426      $ 1,864   
  

 

 

   

 

 

 

 

9