GlobeNewswire Inc | Nov 4, 2020 04:10PM EST

November 04, 2020



? Consolidated revenues were $703million, up 7.6%, and up 3.6% on an organic constant currency (OCC) basis for the third quarter of 2020.

Net income was $186 million, up 466% for the third quarter of ? 2020.Adjusted EBITDA, a non-GAAP measure, was $366 million, up 18.4%, and up 14.8%on an OCC basis.

Diluted GAAP earnings per share (diluted EPS) were $1.12for the third ? quarter of 2020, up 460%.Diluted adjusted earnings per share (diluted adjusted EPS), a non-GAAP measure, were $1.32, up 17.9%.

Net cash provided by operating activities was $207 million, down3.0%for ? the third quarter of 2020. Free cash flow, a non-GAAP measure, was $142 million, down 6.9%.

The company paid a cash dividend of 27 cents per share on September 30, ? 2020. The company's Board of Directors approved a cash dividend of 27 cents per share payable on December 31, 2020.

? The company repurchased $50million of its shares during the third quarter of 2020.

Jersey City, NJ, Nov. 04, 2020 (GLOBE NEWSWIRE) -- Verisk (Nasdaq:VRSK), a leading data analytics provider, today announced results for the third quarter ended September 30, 2020.

Scott Stephenson, chairman, president, and CEO, said, I am very pleased with our third quarter results, which reflect the strength and resiliency of our businessalong with thevalue of, and need for, our solutions.Our long-term strategy remains unchanged as we focus on serving our customers and driving innovation to fuel future growth. I continued to be proudthat our over 9,000 Verisk teammates have adapted quickly to challenges and opportunities inthis new environment.

Lee Shavel, CFO and executive vice president, said, Normalizing for the continued impact of the injunction, Verisk delivered organic constant currency revenue growth of 4.9% and organic constant currency adjusted EBITDA growth of 17.7%, reflecting a sequential improvement from the second quarter and continued strong operating leverage. We continue to invest our strong cash flow back into high growth, high return on capital opportunities while also returning excess capitalto shareholders through dividends and share repurchases.

Summary of Results (GAAP and Non-GAAP)(in millions, except per share amounts)Note: Adjusted EBITDA, diluted adjusted EPS, and free cash flow are non-GAAP measures.

Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 Change 2020 2019 Change Revenues $ 702.7 $ 652.7 7.6 % $ 2,071.2 $ 1,930.3 7.3 %Net income 185.8 32.9 465.7 536.5 317.7 68.9 Adjusted 366.2 309.3 18.4 1,032.5 905.3 14.1 EBITDADiluted 1.12 0.20 460.0 3.24 1.91 69.6 GAAP EPSDilutedadjusted 1.32 1.12 17.9 3.78 3.24 16.7 EPSNet cashprovidedby 207.1 213.6 (3.0 ) 819.2 779.9 5.0 operatingactivitiesFree cash 142.3 152.9 (6.9 ) 644.8 627.1 2.8 flow

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Revenues

Consolidated revenues increased 7.6%, and 3.6% on an OCC basis, for third-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 4.9%in third-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 stemming fromCOVID-19 on approximately 85% of its revenues at this point, as much of these revenues are subscription-based and subject to long-term contracts. Normalizing for the impact of the injunction on the roof measurement solutions, these revenues would have grown approximately 7.8%on an OCC basis in thethird quarter of2020. 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 10%on an OCC basis in third-quarter 2020compared to the prior-year period.

Revenues and Revenue Growth by Segment(in millions)

Revenue Growth Three Months Ended Three Months Ended September 30, September 30, 2020 2020 2019 Reported OCC Underwriting & rating $ 347.9 $ 312.5 11.3 % 6.5 %Claims 150.7 156.5 (3.8 ) 2.5 Insurance 498.6 469.0 6.3 5.2 Energy and Specialized 163.8 140.3 16.7 (1.0 )MarketsFinancial Services 40.3 43.4 (7.1 ) 1.6 Revenues $ 702.7 $ 652.7 7.6 3.6

Revenue Growth Nine Months Ended Nine Months Ended September 30, September 30, 2020 2020 2019 Reported OCC Underwriting & $ 1,035.5 $ 933.1 11.0 % 6.7 %ratingClaims 438.9 460.4 (4.7 ) - Insurance 1,474.4 1,393.5 5.8 4.5 Energy andSpecialized 478.2 406.1 17.8 (0.4 )MarketsFinancial 118.6 130.7 (9.2 ) 0.6 ServicesRevenues $ 2,071.2 $ 1,930.3 7.3 3.2

Insurance segment revenues grew 6.3% in the third quarter and 5.2% on an OCC basis. Normalizing for the impact of the injunction on roof measurement solutions, Insurance revenue would have grown 7.0% on an OCC basis.

Underwriting andrating revenues increased 11.3% in the quarter and 6.5% on an OCC basis, resulting primarily from annual increasesin prices derived from continued enhancements to the content of thesolutions within ? itsindustry-standard insurance programs, as well as selling expanded solutions to existing customers in commercial and personal lines. In addition, catastrophe modeling services contributed to the growth. These increases were partially offset by a decrease in certain transactional revenues.

Claims revenues declined 3.8% in the quarter but increased 2.5% on an OCC basis. Reported and OCC growth were negatively impacted by the injunction ruling against roof measurement solutions, as well as a decline in certain ? transactional revenues in connection with the COVID-19 pandemic. Normalizing for the impact of the injunction on roof measurement solutions, Claims revenue would have grown 8.2% on an OCC basis. Growth was primarily driven by repair cost estimating solutions revenue, claims analytics revenue, and workers compensation claims resolution services.

Energy and Specialized Markets segment revenues increased 16.7% in the quarter and declined 1.0% on an OCC basis. The Genscape acquisition, environmental health and safety service solutions, core research, and weather analytics solutions contributed to the growth. The slightdecrease inthe segment was primarily due todeclines in consulting revenues in connection with the COVID-19 pandemic anddeclines in cost intelligence solutions' implementation projects that did not reoccur.

Financial Services segment revenues decreased 7.1% in the quarter and increased 1.6% on an OCC basis, resulting primarily from declines in our spend informed analytic solutions stemming from the COVID-19 pandemic and therecent dispositions.

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Net Income and Adjusted EBITDA

During third-quarter 2020, net income increased 466%. Adjusted EBITDA increased 18.4%, and 14.8% on an OCC basis. Normalizing for the impact of the injunction on roof measurement solutions, OCC adjusted EBITDA would have grown 17.7% for third-quarter 2020.

EBITDA and Adjusted EBITDA by Segment(in millions)Note: Consolidated EBITDA and adjusted EBITDA are non-GAAP measures. Margin is calculated as a percentage of revenues. See "Non-GAAP Reconciliations" below for a reconciliation tothe nearest GAAP measure.

Three Months Ended September 30, EBITDA EBITDA Margin Adjusted EBITDA Adjusted EBITDA Growth Adjusted EBITDA Margin 2020 2020 2020 2019 2020 2019 2020 2019 Reported OCC 2020 2019 Insurance $ 291.5 $ 111.1 58.5 % 23.7 % $ 291.5 $ 246.5 18.2 % 16.1 % 58.5 % 52.6 %Energy and Specialized 63.0 30.1 38.5 21.4 63.0 48.5 29.9 10.7 38.5 34.6 MarketsFinancial Services 11.7 8.1 28.9 18.6 11.7 14.3 (18.2 ) 3.7 28.9 32.8 Consolidated $ 366.2 $ 149.3 52.1 22.9 $ 366.2 $ 309.3 18.4 14.8 52.1 47.4

Nine Months Ended September 30, EBITDA EBITDA Margin Adjusted EBITDA Adjusted EBITDA Growth Adjusted EBITDA Margin 2020 2020 2020 2019 2020 2019 2020 2019 Reported OCC 2020 2019 Insurance $ 846.2 $ 585.1 57.4 % 42.0 % $ 832.9 $ 732.6 13.7 % 12.6 % 56.5 % 52.6 %Energy and Specialized 165.5 107.6 34.6 26.5 165.5 131.1 26.3 6.5 34.6 32.3 MarketsFinancial Services 37.6 35.4 31.7 27.1 34.1 41.6 (18.0 ) 8.1 28.7 31.8 Consolidated $ 1,049.3 $ 728.1 50.7 37.7 $ 1,032.5 $ 905.3 14.1 11.6 49.8 46.9

Earnings Per Share

Diluted EPS increased 460% to $1.12 for the third quarter of 2020 due to alitigation reserve of $125 million recorded in the third quarter of2019 and a decrease in acquisition-related costs (earn-outs). Diluted adjusted EPS grew 17.9% to $1.32 for the third quarter of 2020, reflecting cost disciplinein the business, a reduction in travel expenses as a result of COVID-19,and a lower average share count.

Cash Flow

Net cash provided by operating activities was $207 million for the third quarter of 2020, down3.0%. Capital expenditures were $65million for the third quarter,up 6.8%. Free cash flow was $142 million,down 6.9%, primarily due to a deferral of federal income tax payments under the CARES Act from the second quarter 2020 to the third quarter 2020,partially offset by the deferral of certain employer payroll taxes, as well as an increase in customer collectionsand a reduction in travel payments as a result of COVID-19.

Free cash flow represented 38.9% of adjusted EBITDA for the third quarter,compared with 49.4%in the prior-year period.

Dividend

On September 30, 2020, Verisk paid a cash dividend of 27 cents per share of common stock issued and outstanding to the holders of record as of September 15, 2020.

On October 28, 2020, Verisk's Board of Directors approved a cash dividend of 27 cents per share of common stock issued and outstanding, payable on December 31, 2020, to holders of record as of December 15, 2020.

Share Repurchases

Including the accelerated share repurchase (ASR) settled in the third quarter of 2020, the company repurchased approximately 0.3 million shares at an average price of $180.97, for a total cost of $50million for the third quarter of 2020. OnSeptember 30, 2020, the company had $329million remaining under its share repurchase authorization.

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Conference Call

Verisks management team will host a live audio webcast to discuss the financial results and business highlights on Thursday, November 5, 2020, at 8:30 a.m. EST (5:30 a.m. PST, 1:30 p.m. GMT). 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 will also be available through dial-in number 1-877-755-3792 for U.S./Canada participants or 512-961-6560 for international participants.

A replay of the webcast will be available for 30 days on the Verisk investor website and through the conference call number 1-855-859-2056 for U.S./Canada participants or 404-537-3406 for international participants using Conference ID #5734408.

About Verisk

Verisk (Nasdaq:VRSK) is a leading data analytics provider serving customers in insurance, energy and specialized markets, and financial services. Using advanced technologies to collect and analyze billions of records, Verisk draws on unique data assets and deep domain expertise to provide first-to-market innovations that are integrated into customer workflows. Verisk offers predictive analytics and decision support solutions to customers in rating, underwriting, claims, catastrophe and weather risk, global risk analytics, natural resources intelligence, economic forecasting, and many other fields. Around the world, Verisk helps customers protect people, property, and financial assets.

Headquartered in Jersey City, N.J., Verisk operates in more than 30 countries and is a member of Standard & Poors S&P 500 Index and the Nasdaq 100 Index. In 2018 and 2019, Forbes named Verisk to its Worlds Best Employers list. For more information, please visit www.verisk.com.

Contact:

Investor Relations Stacey Brodbar Head of Investor Relations Verisk 201-469-4327stacey.brodbar@verisk.com

MediaJoe Madden Verisk Public Relations 401-965-4284Joseph.Madden@verisk.com

Forward-Looking StatementsThis 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 Verisk'sactual 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. This includes, but is not limited to, the potential impacts of the COVID-19 pandemic on itsoperations and financial performance, itsexpectation and ability to pay a cash dividend oncommon stock in the future, subject to the determination by the Board of Directors and based on an evaluation of company earnings, financial condition and requirements, business conditions, capital allocation determinations, and other factors, risks, and uncertainties. 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 the company'scontrol and that could materially affect actual results, levels of activity, performance, or achievements.

Other factors that could materially affect actual results, levels of activity, performance, or achievements can be found in Verisks 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 itsunderlying assumptions prove to be incorrect, actual results may vary significantly from what the companyprojected. Any forward-looking statement in this release reflects the company'scurrent views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to itsoperations, results of operations, growth strategy, and liquidity. The companyassumes 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.

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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 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 companys management uses these measures for reviewing the financial results of the company, for budgeting and planning purposes, and for evaluating the performance of senior management.

EBITDA, Adjusted EBITDA, and Adjusted EBITDA Expenses: EBITDA represents GAAP net income adjusted for (i) depreciation and amortization of fixed assets; (ii) amortization of intangible assets; (iii) interest expense; and (iv) provision for income taxes. Adjusted EBITDA represents EBITDA adjusted for acquisition-related costs (earn-outs), gain/loss from dispositions (which include businesses held for sale), nonrecurring gain/loss, and interest income on the subordinated promissory note. Adjusted EBITDA expenses represent adjusted EBITDA net of revenues. The company believes these measures are useful and meaningful because they allow for greater transparency regarding the companys operating performance and facilitate period-to-period comparison.

Adjusted Net Income and Diluted Adjusted EPS: Adjusted net income represents GAAP net income adjusted for (i) amortization of intangible assets, net of tax; (ii) acquisition-related costs (earn-outs), net of tax; (iii) gain/loss from dispositions (which include businesses held for sale), net of tax; (iv) nonrecurring gain/loss, net of tax; and (v) interest income on the subordinated promissory note, net of tax. Diluted adjusted EPS represents adjusted net income divided by weighted-average diluted shares. The company believes these measures are useful and meaningful because they allow evaluation of the after-tax profitability of the companys results excluding the after-tax effect of acquisition-related costs and nonrecurring items.

Free Cash Flow: Free cash flow represents net cash provided by operating activities determined in accordance with GAAP minus payments for capital expenditures. The company believes free cash flow is an important measure of the recurring cash generated by the companys operations that may be available to repay debt obligations, repurchase its stock, invest in future growth through new business development activities, or make acquisitions.

Organic Constant Currency (OCC): The companys operating results, such as, but not limited to, revenue and adjusted EBITDA, reported in U.S. dollars are affected by foreign currency exchange rate fluctuations because the underlying foreign currencies in which it transacts change in value over time compared with the U.S. dollar; accordingly, it presents certain constant currency financial information to assess how the company performed excluding the impact of foreign currency exchange rate fluctuations.The company calculates constant currency by translating comparable prior-year-period results at the currency exchange rates used in the current period. The company defines organic as operating results excluding the effect of recent acquisitions and dispositions (which include businesses held for sale) that have occurred over the past year.An acquisition is included as organic at the beginning of the calendar quarter that occurs afterthe one-year anniversary of the acquisition date.Once an acquisition is included in its current-period organic base, its comparable prior-year-period operating results are also included to calculate organic growth. A disposition (which includes a business held for sale) is excluded from organic at the beginning of the calendar quarter in which the disposition occurs (or when a business meets the held-for-sale criteria under U.S. GAAP).Once a disposition is excluded from its current-period organic base, its comparable prior-year-period operating results are also excluded to calculate organic growth. The organic presentation enables investors to assess the growth of the business without the impact of recent acquisitions for which there is no prior-year comparison. A dispositions results are removed from all prior periods presented to allow for comparability. The company believes organic constant currency is a useful and meaningful measure to enhance investors understanding of the continuing operating performance of its business and to facilitate the comparison of period-to-period performance because it excludes the impact of foreign exchange rate movements, acquisitions, and dispositions.

See page 10for a reconciliation of consolidated adjusted EBITDAand a segment results summary and a reconciliation of adjusted EBITDA.See page 11fora reconciliation of segment adjusted EBITDA margin,a reconciliation of adjusted EBITDA expenses, and a reconciliation of diluted adjusted EPS. See page 12fora reconciliation of net cash provided by operating activities to free cash flow.

Attached Financial Statements

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

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VERISK ANALYTICS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)As of September 30, 2020 and December31, 2019

2020 2019 (in millions, except for share and per share data)ASSETS: Current assets: Cash and cash equivalents $ 221.8 $ 184.6 Accounts receivable, net of allowance for doubtful 433.4 441.6 accounts of $16.1 and $11.7, respectivelyPrepaid expenses 82.3 60.9 Income taxes receivable 26.0 25.9 Other current assets 36.2 17.8 Current assets held for sale ? 14.1 Total current assets 799.7 744.9 Noncurrent assets: Fixed assets, net 606.4 548.1 Operating lease right-of-use assets, net 237.8 218.6 Intangible assets, net 1,316.3 1,398.9 Goodwill 3,924.9 3,864.3 Deferred income tax assets 9.5 9.8 Other noncurrent assets 325.0 159.8 Noncurrent assets held for sale ? 110.8 Total assets $ 7,219.6 $ 7,055.2 LIABILITIES AND STOCKHOLDERS? EQUITY: Current liabilities: Accounts payable and accrued liabilities $ 369.3 $ 375.0 Acquisition-related liabilities 12.7 111.2 Short-term debt and current portion of long-term 460.4 499.4 debtDeferred revenues 531.7 440.1 Operating lease liabilities 39.2 40.6 Income taxes payable 9.6 6.8 Current liabilities held for sale ? 18.7 Total current liabilities 1,422.9 1,491.8 Noncurrent liabilities: Long-term debt 2,698.9 2,651.6 Deferred income tax liabilities 369.2 356.0 Operating lease liabilities 240.2 208.1 Other liabilities 67.1 48.8 Noncurrent liabilities held for sale ? 38.1 Total liabilities 4,798.3 4,794.4 Commitments and contingencies Stockholders? equity: Common stock, $.001 par value; 2,000,000,000shares authorized; 544,003,038 shares issued; 0.1 0.1 162,751,449 and 163,161,564 shares outstanding,respectivelyAdditional paid-in capital 2,464.6 2,369.1 Treasury stock, at cost, 381,251,589 and (4,132.9 ) (3,849.9 )380,841,474 shares, respectivelyRetained earnings 4,630.4 4,228.4 Accumulated other comprehensive losses (540.9 ) (486.9 )Total stockholders? equity 2,421.3 2,260.8 Total liabilities and stockholders? equity $ 7,219.6 $ 7,055.2

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VERISK ANALYTICS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)For the Three and Nine Months Ended September 30, 2020 and 2019

Three Months Ended September Nine Months Ended September 30, 30, 2020 2019 2020 2019 (in millions, except for share and per share data) Revenues $ 702.7 $ 652.7 $ 2,071.2 $ 1,930.3 Operating expenses:Cost of revenues(exclusive ofitems shown 240.0 242.9 733.4 717.0 separatelybelow)Selling, generaland 96.4 255.0 304.8 478.7 administrativeDepreciation andamortization of 49.4 45.8 141.3 138.0 fixed assetsAmortization ofintangible 41.5 33.3 123.6 100.1 assetsOther operating ? 6.2 (19.4 ) 6.2 loss (income)Total operating 427.3 583.2 1,283.7 1,440.0 expensesOperating income 275.4 69.5 787.5 490.3 Other income (expense):Investment(loss) income (0.1 ) 0.7 (3.1 ) (0.3 )and others, netInterest expense (35.3 ) (31.3 ) (102.9 ) (93.7 )Total other (35.4 ) (30.6 ) (106.0 ) (94.0 )expense, netIncome before 240.0 38.9 681.5 396.3 income taxesProvision for (54.2 ) (6.0 ) (145.0 ) (78.6 )income taxesNet income $ 185.8 $ 32.9 $ 536.5 $ 317.7 Basic net income $ 1.14 $ 0.20 $ 3.30 $ 1.94 per shareDiluted net $ 1.12 $ 0.20 $ 3.24 $ 1.91 income per shareWeighted-averageshares outstanding:Basic 162,502,191 163,580,563 162,589,473 163,617,580 Diluted 165,731,226 166,779,618 165,519,899 166,673,946

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VERISK ANALYTICS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)For the Three and Nine Months Ended September 30, 2020 and 2019

Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in millions) Cash flows from operating activities:Net income $ 185.8 $ 32.9 $ 536.5 $ 317.7 Adjustments to reconcilenet income to net cash provided by operatingactivities:Depreciation andamortization of fixed 49.4 45.8 141.3 138.0 assetsAmortization of intangible 41.5 33.3 123.6 100.1 assetsAmortization of debtissuance costs and original 0.5 1.6 1.3 3.5 issue discount, net oforiginal issue premiumProvision for doubtful 1.4 1.8 6.8 5.1 accountsLoss (gain) on sale of ? 6.2 (19.4 ) 6.2 assetsStock-based compensation 10.0 8.8 39.1 36.4 Realized gain onavailable-for-sale ? (0.1 ) ? (0.7 )securities, netDeferred income taxes 12.4 (27.4 ) 10.9 (27.4 )Loss on disposal of fixed 0.1 ? 0.5 ? assets, netChanges in assets andliabilities, net of effects from acquisitions:Accounts receivable 26.8 35.2 (3.6 ) (54.5 )Prepaid expenses and other (8.3 ) (9.2 ) (62.1 ) (19.9 )assetsOperating lease 9.3 9.9 28.6 28.5 right-of-use assets, netIncome taxes (63.3 ) 2.7 3.3 13.9 Acquisition-related (0.1 ) 44.9 (63.4 ) 40.5 liabilitiesAccounts payable and 39.3 138.7 (12.1 ) 152.7 accrued liabilitiesDeferred revenues (90.5 ) (95.3 ) 94.3 71.5 Operating lease liabilities (8.7 ) (8.7 ) (16.6 ) (27.2 )Other liabilities 1.5 (7.5 ) 10.2 (4.5 )Net cash provided by 207.1 213.6 819.2 779.9 operating activitiesCash flows from investing activities:Acquisitions, net of cashacquired of $5.2 and $3.1 (151.9 ) (40.4 ) (151.9 ) (109.5 )and $5.2 and $6.8,respectivelyEscrow funding associated (8.0 ) (4.5 ) (8.0 ) (4.5 )with acquisitionsProceeds from sale of ? ? 23.1 ? assetsPurchase of investments in ? ? (63.8 ) ? a nonpublic companyCapital expenditures (64.8 ) (60.7 ) (174.4 ) (152.8 )Other investing activities, 5.7 (0.8 ) 10.3 (7.7 )netNet cash used in investing (219.0 ) (106.4 ) (364.7 ) (274.5 )activities

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Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in millions) Cash flows from financing activities:Repayments of short-term ? (60.0 ) (495.0 ) (405.0 )debt, netProceeds from issuance ofshort-term debt with original ? ? 20.0 ? maturities greater than threemonthsRepayments of short-term debtwith original maturities ? ? (20.0 ) ? greater than three monthsRepayments of current portion ? ? ? (250.0 )of long-term debtProceeds from issuance oflong-term debt, inclusive oforiginal issue premium and ? 221.8 494.8 619.7 net of original issuediscountPayment of debt issuance (0.1 ) (1.2 ) (5.7 ) (5.3 )costsRepurchases of common stock (50.0 ) (75.0 ) (298.8 ) (200.0 )Proceeds from stock options 26.0 13.5 68.3 45.8 exercisedNet share settlement from ? ? (3.5 ) (5.1 )restricted stock awardsDividends paid (43.9 ) (40.8 ) (131.8 ) (122.7 )Payment of contingentliability related to ? ? (34.2 ) ? acquisitionsOther financing activities, (8.5 ) (6.9 ) (13.0 ) (12.2 )netNet cash (used in) provided (76.5 ) 51.4 (418.9 ) (334.8 )by financing activitiesEffect of exchange rate 0.8 (0.1 ) 1.3 1.7 changes(Decrease) increase in cash (87.6 ) 158.5 36.9 172.3 and cash equivalentsCash and cash equivalentsclassified within current ? ? 0.3 ? assets held for sale,beginning of periodCash and cash equivalents, 309.4 153.3 184.6 139.5 beginning of periodCash and cash equivalents, $ 221.8 $ 311.8 $ 221.8 $ 311.8 end of periodSupplemental disclosures: Income taxes paid $ 107.1 $ 37.5 $ 132.8 $ 98.9 Interest paid $ 19.2 $ 16.5 $ 82.9 $ 77.1 Noncash investing and financing activities:Debt issuance costs includedin accounts payable and $ 0.1 $ 1.3 $ ? $ 1.3 accrued liabilitiesDeferred tax liabilityestablished on date of $ 1.8 $ 2.9 $ 1.8 $ 2.8 acquisitionRight-of-use assets obtainedin exchange for new operating $ ? $ ? $ ? $ 247.6 lease liabilitiesFinance lease obligations $ 23.8 $ 9.8 $ 25.4 $ 19.2 Operating lease additions, $ 2.3 $ 2.0 $ 47.5 $ 3.3 net of terminationsTenant improvements includedin Operating lease $ 0.1 $ 0.9 $ 0.1 $ 1.6 right-of-use assets, netFixed assets included inaccounts payable and accrued $ 1.1 $ 0.5 $ 1.1 $ 0.5 liabilitiesDividend payable included in $ 0.1 $ 0.8 $ 0.5 $ 1.0 other liabilitiesGain on sale of assetsincluded in other current and $ ? $ ? $ 3.5 $ ? long-term assetsHeld for sale assetscontributed to a nonpublic $ ? $ ? $ 65.9 $ ? company

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Non-GAAP Reconciliations

Consolidated Adjusted EBITDA Reconciliation(in millions)Note: Adjusted EBITDA is a non-GAAP measure. Margin is calculated as a percentage of consolidated revenues.

Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Total Margin Total Margin Total Margin Total Margin Net income $ 185.8 26.4 % $ 32.9 5.0 % $ 536.5 25.9 % $ 317.7 16.5 %Depreciation andamortization of 49.4 7.0 45.8 7.0 141.3 6.8 138.0 7.1 fixed assetsAmortization of 41.5 5.9 33.3 5.1 123.6 6.0 100.1 5.2 intangible assetsInterest expense 35.3 5.0 31.3 4.8 102.9 5.0 93.7 4.9 Provision for 54.2 7.8 6.0 1.0 145.0 7.0 78.6 4.0 income taxesEBITDA 366.2 52.1 149.3 22.9 1,049.3 50.7 728.1 37.7 Acquisition-related ? ? 28.8 4.4 2.6 0.1 46.0 2.4 costs (earn-outs)Loss (gain) from ? ? 6.2 1.0 (19.4 ) (1.0 ) 6.2 0.3 dispositionsLitigation reserve ? ? 125.0 19.1 ? ? 125.0 6.5 Adjusted EBITDA 366.2 52.1 309.3 47.4 1,032.5 49.8 905.3 46.9 Adjusted EBITDAfrom acquisitions (13.2 ) 1.2 (3.0 ) 0.7 (32.3 ) 1.6 (8.4 ) 0.6 and dispositionsOrganic adjusted $ 353.0 53.3 $ 306.3 48.1 $ 1,000.2 51.4 $ 896.9 47.5 EBITDA

Segment Results Summary and Adjusted EBITDA Reconciliation(in millions)Note: Organic revenues and adjusted EBITDA are non-GAAP measures.

Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Energy and Financial Energy and Financial Insurance Specialized Services Insurance Specialized Services Markets MarketsRevenues $ 498.6 $ 163.8 $ 40.3 $ 469.0 $ 140.3 $ 43.4 Revenues fromacquisitions and (16.3 ) (23.1 ) (0.6 ) (11.9 ) ? (4.4 )dispositionsOrganic revenues $ 482.3 $ 140.7 $ 39.7 $ 457.1 $ 140.3 $ 39.0 EBITDA $ 291.5 $ 63.0 $ 11.7 $ 111.1 $ 30.1 $ 8.1 Acquisition-related ? ? ? 10.4 18.4 ? costs (earn-outs)Litigation reserve ? ? ? 125.0 ? ? Loss from ? ? ? ? ? 6.2 dispositionAdjusted EBITDA 291.5 63.0 11.7 246.5 48.5 14.3 Adjusted EBITDAfrom acquisitions (4.7 ) (8.9 ) 0.4 (0.5 ) 0.4 (2.9 )and dispositionsOrganic adjusted $ 286.8 $ 54.1 $ 12.1 $ 246.0 $ 48.9 $ 11.4 EBITDA

Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Energy and Financial Energy and Financial Insurance Specialized Services Insurance Specialized Services Markets MarketsRevenues $ 1,474.4 $ 478.2 $ 118.6 $ 1,393.5 $ 406.1 $ 130.7 Revenues fromacquisitions and (48.1 ) (74.7 ) (2.4 ) (28.9 ) ? (14.8 )dispositionsOrganic revenues $ 1,426.3 $ 403.5 $ 116.2 $ 1,364.6 $ 406.1 $ 115.9 EBITDA $ 846.2 $ 165.5 $ 37.6 $ 585.1 $ 107.6 $ 35.4 Acquisition-related 2.6 ? ? 22.5 23.5 ? costs (earn-outs)Litigation reserve ? ? ? 125.0 ? ? (Gain) loss from (15.9 ) ? (3.5 ) ? ? 6.2 dispositionsAdjusted EBITDA 832.9 165.5 34.1 732.6 131.1 41.6 Adjusted EBITDAfrom acquisitions (8.1 ) (25.2 ) 1.0 (0.5 ) 1.3 (9.2 )and dispositionsOrganic adjusted $ 824.8 $ 140.3 $ 35.1 $ 732.1 $ 132.4 $ 32.4 EBITDA

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Segment Adjusted EBITDA Margin ReconciliationNote: Segment adjusted EBITDA margin is calculated as a percentage of respective segment revenues.

Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Energy and Financial Energy and Financial Insurance Specialized Services Insurance Specialized Services Markets MarketsEBITDA margin 58.5 % 38.5 % 28.9 % 23.7 % 21.4 % 18.6 %Acquisition-related ? ? ? 2.2 13.2 ? costs (earn-outs)Litigation reserve ? ? ? 26.7 ? ? Loss from ? ? ? ? ? 14.2 dispositionAdjusted EBITDA 58.5 38.5 28.9 52.6 34.6 32.8 margin

Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Energy and Financial Energy and Financial Insurance Specialized Services Insurance Specialized Services Markets MarketsEBITDA margin 57.4 % 34.6 % 31.7 % 42.0 % 26.5 % 27.1 %Acquisition-related 0.2 ? ? 1.6 5.8 ? costs (earn-outs)Litigation reserve ? ? ? 9.0 ? ? (Gain) loss from (1.1 ) ? (3.0 ) ? ? 4.7 dispositionsAdjusted EBITDA 56.5 34.6 28.7 52.6 32.3 31.8 margin

Consolidated Adjusted EBITDA Expense Reconciliation(in millions)Note: Adjusted EBITDA expenses are a non-GAAP measure.

Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Operating expenses $ 427.3 $ 583.2 $ 1,283.7 $ 1,440.0 Depreciation andamortization of fixed (49.4 ) (45.8 ) (141.3 ) (138.0 )assetsAmortization of intangible (41.5 ) (33.3 ) (123.6 ) (100.1 )assetsInvestment (loss) income 0.1 (0.7 ) 3.1 0.3 and others, netAcquisition-related costs ? (28.8 ) (2.6 ) (46.0 )(earn-outs)(Loss) gain from ? (6.2 ) 19.4 (6.2 )dispositionsLitigation reserve ? (125.0 ) ? (125.0 )Adjusted EBITDA expenses $ 336.5 $ 343.4 $ 1,038.7 $ 1,025.0

Diluted Adjusted EPS Reconciliation(in millions, except per share amounts)Note: Diluted adjusted EPS is a non-GAAP measure.

Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net income $ 185.8 $ 32.9 $ 536.5 $ 317.7 plus: Amortization of 41.5 33.3 123.6 100.1 intangiblesless: Income tax effect on (9.1 ) (7.0 ) (27.1 ) (21.0 )amortization of intangiblesplus: Acquisition-related costsand interest expense ? 29.1 2.6 46.8 (earn-outs)less: Income tax effect onacquisition-related costs and ? (2.0 ) (0.6 ) (2.8 )interest expense (earn-outs)less: Loss (gain) from ? 6.2 (19.4 ) 6.2 dispositionsplus: Income tax effect on loss ? (1.5 ) 9.6 (1.5 )(gain) from dispositionsplus: Litigation reserve ? 125.0 ? 125.0 less: Income tax effect on ? (29.9 ) ? (29.9 )litigation reserveAdjusted net income $ 218.2 $ 186.1 $ 625.2 $ 540.6 Diluted EPS $ 1.12 $ 0.20 $ 3.24 $ 1.91 Diluted adjusted EPS $ 1.32 $ 1.12 $ 3.78 $ 3.24 Weighted-average diluted shares 165.7 166.8 165.5 166.7 outstanding

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Free Cash Flow Reconciliation(in millions)Note: Free cash flow is a non-GAAP measure.

Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 Change 2020 2019 Change Net cashprovided by $ 207.1 $ 213.6 (3.0 )% $ 819.2 $ 779.9 5.0 %operatingactivitiesCapital (64.8 ) (60.7 ) 6.8 (174.4 ) (152.8 ) 14.1 expendituresFree cash $ 142.3 $ 152.9 (6.9 ) $ 644.8 $ 627.1 2.8 flow