GlobeNewswire Inc | Aug 4, 2020 04:00PM EDT

August 04, 2020

? Consolidated revenues were $679million, up 4.0%, and up 1.1% on an organic constant currency (OCC) basis for the second quarter of 2020.

Net income was $179 million, up 19.0% for the second quarter of ? 2020.Adjusted EBITDA, a non-GAAP measure, was $348 million, up 14.5%, and up 12.4% on an OCC basis.

Diluted GAAP earnings per share (diluted EPS) were $1.08for the second ? quarter of 2020. Diluted adjusted earnings per share (diluted adjusted EPS), a non-GAAP measure, were $1.29.

Net cash provided by operating activities was $250 million, up 24.6%for ? the second quarter of 2020. Free cash flow, a non-GAAP measure, was $193 million, up 25.7%.

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

? The company repurchased $75million of its shares during the second quarter of 2020.

? The company currently has $995million of undrawn capacity on its revolver and no meaningful maturities until May 2021.

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

Scott Stephenson, chairman, president, and CEO, said, Our second quarter results reflect the enduring strength and stability of our business model, and the laser-focus of our over 9,000 Verisk teammates on delivering for our customers as they face new challenges in this environment. Our long-term objectives are unchanged. We remain committed to offering a great customer experience, protecting the health and well-being of our teammates, and continuing to drive our innovation agenda.

Lee Shavel, CFO and executive vice president, said, Verisk delivered organic constant currency adjusted EBITDA growth of 12.4%, demonstrating strong operating leverage despite reduced revenue growth this quarter due to the impact of COVID-19. This leverage reflects the responsiveness of our compensation structure and our attention to controllingheadcount growth during these uncertain times. We continue to use our strong cash flow to invest in high growth, high return on investment projects that support future growth.

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 Six Months Ended June 30, June 30, 2020 2019 Change 2020 2019 Change Revenues $ 678.8 $ 652.6 4.0 % $ 1,368.6 $ 1,277.6 7.1 %Net income 179.0 150.4 19.0 350.7 284.8 23.2 Adjusted 348.3 304.1 14.5 666.3 595.9 11.80 EBITDADiluted 1.08 0.90 20.0 2.12 1.71 24.0 GAAP EPSDilutedadjusted 1.29 1.10 17.3 2.46 2.13 15.5 EPSNet cashprovidedby 249.5 200.3 24.6 612.1 566.4 8.1 operatingactivitiesFree cash 192.8 153.4 25.7 502.5 474.3 5.9 flow

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Revenues

Consolidated revenues increased 4.0%, and 1.1% on an OCC basis, for second-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 2.4% in second-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 of COVID-19 on approximately 85% of its revenues at this point, as much of these revenues are subscription-based in nature and subject to long-term contracts. Normalizing for the impact of the injunction on the roof measurement solutions, these revenues would have grown approximately 6.5% on an OCC basis in thesecond 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 20% on an OCC basis in second-quarter 2020compared to the prior-year period.

Revenues and Revenue Growth by Segment(in millions)

Revenue Growth Three Months Ended Three Months Ended June 30, June 30, 2020 2020 2019 Reported OCC Underwriting & rating $ 343.5 $ 314.8 9.1 % 5.1 %Claims 142.9 156.2 (8.6 ) (2.9 )Insurance 486.4 471.0 3.3 2.5 Energy and Specialized 154.4 137.3 12.4 (2.8 )MarketsFinancial Services 38.0 44.3 (14.1 ) (2.7 )Revenues $ 678.8 $ 652.6 4.0 1.1

Revenue Growth Six Months Ended Six Months Ended June 30, June 30, 2020 2020 2019 Reported OCC Underwriting & $ 687.6 $ 620.6 10.8 % 6.7 %ratingClaims 288.2 303.9 (5.2 ) (1.3 )Insurance 975.8 924.5 5.5 4.2 Energy andSpecialized 314.5 265.8 18.3 (0.2 )MarketsFinancial 78.3 87.3 (10.3 ) 0.1 ServicesRevenues $ 1,368.6 $ 1,277.6 7.1 3.0

Insurance segment revenues grew 3.3% in the second quarter of 2020 and 2.5% on an OCC basis. Normalizing for the impact of the injunction on roof measurement solutions, Insurance revenue would have grown 4.3% on an OCC basis.

Underwriting & rating revenues increased 9.1% in the quarter and 5.1% on an OCC basis, resulting primarily from an annual increase in prices derived from the continued enhancements to the content of the solutions within the ? industry-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 8.6% in the quarter and 2.9% 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 2.6% on an OCC basis. Growth was primarily driven by repair cost estimating solutions revenue, workers compensation claims resolution services, and claims analytics revenue.

Energy and Specialized Markets segment revenues increased 12.4% in the quarter and declined 2.8% on an OCC basis. The Genscape acquisition, environmental health and safety service solutions, core research, and weather analytics solutions contributed to the growth. The remaining decrease within the segment was primarily due to declines in cost intelligence solutions' implementation projects that did not reoccur, and consulting revenues in connection with the COVID-19 pandemic.

Financial Services segment revenues decreased 14.1% in the quarter and 2.7% on an OCC basis, resulting primarily from the impact of the COVID-19 pandemic and therecent dispositions.

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Net Income and Adjusted EBITDA

During second-quarter 2020, net income increased 19.0%, driven by cost discipline in the business, a reduction in travel expenses as a result of COVID-19, the timing shift of a $10 million expense related to annual long-term equity incentive grants that was recognized in the first quarter of this year as compared to the second quarter in the prior year, and a lower level of acquisition-related costs (earn-outs). Adjusted EBITDA increased 14.5%, and 12.4% on an OCC basis. Normalizing for the impact of the injunction on roof measurement solutions, OCC adjusted EBITDA would have grown 15.4% for second-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.

Three Months Ended June 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 $ 282.3 $ 242.7 58.0 % 51.5 % $ 284.7 $ 247.3 15.1 % 13.8 % 58.5 % 52.5 %Energy and Specialized 52.3 40.3 33.9 29.3 52.3 42.7 22.2 6.2 33.9 31.1 MarketsFinancial Services 11.3 14.1 29.7 31.9 11.3 14.1 (19.8 ) 5.8 29.7 31.9 Consolidated $ 345.9 $ 297.1 51.0 45.5 $ 348.3 $ 304.1 14.5 12.4 51.3 46.6

Six Months Ended June 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 $ 554.7 $ 474.0 56.8 % 51.3 % $ 541.4 $ 486.0 11.4 % 10.9 % 55.5 % 52.6 %Energy and Specialized 102.5 77.5 32.6 29.2 102.5 82.5 24.2 4.0 32.6 31.0 MarketsFinancial Services 25.9 27.4 33.1 31.3 22.4 27.4 (18.0 ) 10.5 28.7 31.3 Consolidated $ 683.1 $ 578.9 49.9 45.3 $ 666.3 $ 595.9 11.8 9.9 48.7 46.6

Earnings Per Share

Diluted EPS increased 20.0% to $1.08 for the second quarter of 2020 due to cost discipline in the business, a reduction in travel expenses as a result of COVID-19, the above-mentioned timing shift in expense related to annual long-term equity incentive grants, and a decrease in acquisition-related costs (earn-outs). Diluted adjusted EPS grew 17.3% to $1.29 for the second quarter of 2020, reflecting cost disciplinein the business and a lower average share count.

Cash Flow

Net cash provided by operating activities was $250 million for the second quarter of 2020, up 24.6%. Capital expenditures were $57million for the second quarter of 2020, up 20.9%. Free cash flow was $193 million for the second quarter of 2020, up 25.7%, primarily due to an increase in customer collections and operating profit, a reduction in travel payments as a result of COVID-19, as well as a deferral of federal income taxes and certain employer payroll taxes resulting from the CARES Act, partially offset by earnout payments of $65.1 million.

Free cash flow represented 55.4% of adjusted EBITDA for the second quarter of 2020, compared with 50.4% in the prior-year period.

Senior Notes

During the second quarter of 2020, the company completed an issuance of $500 million aggregate principal amount of 3.625% senior notes due in 2050, at an issue price of 98.97% for an effective yield of 3.682%. The company used the proceeds to repay amounts outstanding under its revolving credit facility and for general corporate purposes.

Dividend

On June 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 June 15, 2020.

On July 29, 2020, Verisk's Board of Directors approved a cash dividend of 27 cents per share of common stock issued and outstanding, payable on September 30, 2020, to holders of record as of September 15, 2020.

Share Repurchases

Including the accelerated share repurchase (ASR) settled in the second quarter of 2020, the company repurchased approximately 0.5 million shares at an average price of $152.59, for a total cost of $75 million for the second quarter of 2020. OnJune 30, 2020, the company had $379 million remaining under its share repurchase authorization.

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Conference Call

Verisks management team will host a live audio webcast on Wednesday, August 5, 2020, at 8:30 a.m. EDT (5:30 a.m. PDT, 1:30 p.m. BST) 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 1-512-961-6560 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 1-404-537-3406 for international participants using conference ID #8981659.

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 30 countries and is a member of Standard & Poors S&P 500 Index and Nasdaq 100 Index. For more information, please visit www.verisk.com.

Contact:

Investor RelationsStacey BrodbarHead of Investor RelationsVerisk201-469-4327IR@verisk.com

MediaJoe Madden Verisk Public Relations 201-232-4486joseph.madden@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 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 June 30, 2020 and December31, 2019

2020 2019 (in millions, except for share and per share data)ASSETS: Current assets: Cash and cash equivalents $ 309.4 $ 184.6 Accounts receivable, net of allowance for doubtful 454.5 441.6 accounts of $15.9 and $11.7, respectivelyPrepaid expenses 81.6 60.9 Income taxes receivable ? 25.9 Other current assets 33.2 17.8 Current assets held for sale ? 14.1 Total current assets 878.7 744.9 Noncurrent assets: Fixed assets, net 560.1 548.1 Operating lease right-of-use assets, net 242.3 218.6 Intangible assets, net 1,264.3 1,398.9 Goodwill 3,744.1 3,864.3 Deferred income tax assets 9.1 9.8 Other noncurrent assets 309.3 159.8 Noncurrent assets held for sale ? 110.8 Total assets $ 7,007.9 $ 7,055.2 LIABILITIES AND STOCKHOLDERS? EQUITY: Current liabilities: Accounts payable and accrued liabilities $ 322.4 $ 375.0 Acquisition-related liabilities 12.1 111.2 Short-term debt and current portion of long-term 453.0 499.4 debtDeferred revenues 617.5 440.1 Operating lease liabilities 37.9 40.6 Income taxes payable 47.4 6.8 Current liabilities held for sale ? 18.7 Total current liabilities 1,490.3 1,491.8 Noncurrent liabilities: Long-term debt 2,690.7 2,651.6 Deferred income tax liabilities 348.2 356.0 Operating lease liabilities 245.6 208.1 Other liabilities 57.0 48.8 Noncurrent liabilities held for sale ? 38.1 Total liabilities 4,831.8 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 0.1 162,520,246 and 163,161,564 shares outstanding,respectivelyAdditional paid-in capital 2,432.8 2,369.1 Treasury stock, at cost, 381,482,792 and (4,088.4 ) (3,849.9 )380,841,474 shares, respectivelyRetained earnings 4,488.8 4,228.4 Accumulated other comprehensive losses (657.2 ) (486.9 )Total stockholders? equity 2,176.1 2,260.8 Total liabilities and stockholders? equity $ 7,007.9 $ 7,055.2

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

Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in millions, except for share and per share data) Revenues $ 678.8 $ 652.6 $ 1,368.6 $ 1,277.6 Operating expenses:Cost of revenues(exclusive ofitems shown 235.8 242.7 493.5 474.1 separatelybelow)Selling, generaland 96.4 112.3 208.5 223.7 administrativeDepreciation andamortization of 45.9 45.7 92.0 92.2 fixed assetsAmortization ofintangible 41.0 33.6 82.0 66.9 assetsOther operating ? ? (19.4 ) ? incomeTotal operating 419.1 434.3 856.6 856.9 expensesOperating income 259.7 218.3 512.0 420.7 Other income (expense):Investment loss (0.7 ) (0.5 ) (2.9 ) (0.9 )and others, netInterest expense (34.2 ) (30.5 ) (67.6 ) (62.4 )Total other (34.9 ) (31.0 ) (70.5 ) (63.3 )expense, netIncome before 224.8 187.3 441.5 357.4 income taxesProvision for (45.8 ) (36.9 ) (90.8 ) (72.6 )income taxesNet income $ 179.0 $ 150.4 $ 350.7 $ 284.8 Basic net income $ 1.10 $ 0.92 $ 2.16 $ 1.74 per shareDiluted net $ 1.08 $ 0.90 $ 2.12 $ 1.71 income per shareWeighted-averageshares outstanding:Basic 162,371,920 163,743,835 162,633,113 163,636,089 Diluted 165,103,088 166,697,276 165,413,604 166,621,111

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

Three Months Ended Six Months Ended June June 30, 30, 2020 2019 2020 2019 (in millions) Cash flows from operating activities:Net income $ 179.0 $ 150.4 $ 350.7 $ 284.8 Adjustments to reconcile netincome to net cash provided by operating activities:Depreciation and amortization 45.9 45.7 92.0 92.2 of fixed assetsAmortization of intangible 41.0 33.6 82.0 66.9 assetsAmortization of debt issuancecosts and original issue 0.5 1.0 0.8 1.9 discount, net of originalissue premiumProvision for doubtful 3.9 2.1 5.4 3.3 accountsGain on sale of assets ? ? (19.4 ) ? Stock-based compensation 9.5 18.4 29.1 27.6 Realized gain onavailable-for-sale (0.5 ) (0.2 ) ? (0.6 )securities, netDeferred income taxes (1.4 ) (3.3 ) (1.5 ) ? Loss on disposal of fixed 0.1 ? 0.4 ? assets, netChanges in assets andliabilities, net of effects from acquisitions:Accounts receivable 66.1 (8.1 ) (30.4 ) (89.7 )Prepaid expenses and other (35.3 ) 9.8 (53.8 ) (10.7 )assetsOperating lease right-of-use 10.0 (8.5 ) 19.3 18.6 assets, netIncome taxes 25.6 (14.1 ) 66.6 11.2 Acquisition-related (63.5 ) 5.3 (63.3 ) 13.7 liabilitiesAccounts payable and accrued 10.6 27.9 (51.4 ) (7.9 )liabilitiesDeferred revenues (52.8 ) (50.9 ) 184.8 166.8 Operating lease liabilities 2.6 (9.4 ) (7.9 ) (18.5 )Other liabilities 8.2 0.6 8.7 6.8 Net cash provided by 249.5 200.3 612.1 566.4 operating activitiesCash flows from investing activities:Acquisitions, net of cashacquired of $0 and $0, and $0 ? ? ? (69.1 )and $3.7, respectivelyProceeds from sale of assets ? ? 23.1 ? Purchase of investments in a ? ? (63.8 ) ? nonpublic companyCapital expenditures (56.7 ) (46.9 ) (109.6 ) (92.1 )Other investing activities, (1.5 ) (0.9 ) 4.6 (6.9 )netNet cash used in investing (58.2 ) (47.8 ) (145.7 ) (168.1 )activities

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Three Months Ended Six Months Ended June June 30, 30, 2020 2019 2020 2019 (in millions) Cash flows from financing activities:Repayments of short-term (420.0 ) (100.0 ) (495.0 ) (345.0 )debt, netProceeds from issuance ofshort-term debt with ? ? 20.0 ? original maturities greaterthan three monthsRepayments of short-termdebt with original (20.0 ) ? (20.0 ) ? maturities greater thanthree monthsRepayments of current ? ? ? (250.0 )portion of long-term debtProceeds from issuance oflong-term debt, inclusiveof original issue premium 494.8 ? 494.8 397.9 and net of original issuediscountPayment of debt issuance (5.6 ) (1.2 ) (5.6 ) (4.1 )costsRepurchases of common stock (75.0 ) (50.0 ) (248.8 ) (125.0 )Proceeds from stock options 22.9 20.7 42.1 32.3 exercisedNet share settlement from (3.5 ) (5.1 ) (3.5 ) (5.1 )restricted stock awardsDividends paid (44.0 ) (41.0 ) (87.9 ) (81.9 )Payment of contingentliability related to (34.2 ) ? (34.2 ) ? acquisitionsOther financing activities, (2.4 ) (3.2 ) (4.3 ) (5.3 )netNet cash used in financing (87.0 ) (179.8 ) (342.4 ) (386.2 )activitiesEffect of exchange rate 0.7 1.1 0.5 1.7 changesIncrease (decrease) in cash 105.0 (26.2 ) 124.5 13.8 and cash equivalentsCash and cash equivalentsclassified within current ? ? 0.3 ? assets held for sale,beginning of periodCash and cash equivalents, 204.4 179.5 184.6 139.5 beginning of periodCash and cash equivalents, $ 309.4 $ 153.3 $ 309.4 $ 153.3 end of periodSupplemental disclosures: Income taxes paid $ 21.6 $ 53.9 $ 25.7 $ 61.4 Interest paid $ 41.1 $ 45.3 $ 63.7 $ 60.6 Noncash investing and financing activities:Debt issuance costsincluded in accounts $ 0.1 $ ? $ 0.1 $ ? payable and accruedliabilitiesDeferred tax assetestablished on date of $ ? $ ? $ ? $ 0.1 acquisitionRight-of-use assetsobtained in exchange for $ ? $ ? $ ? $ 247.6 new operating leaseliabilitiesFinance lease obligations $ 0.1 $ 7.7 $ 1.6 $ 9.4 Operating lease additions, $ 43.6 $ 1.3 $ 45.2 $ 1.3 net of terminationsTenant improvements $ ? $ 0.7 $ ? $ 0.7 Fixed assets included inaccounts payable and $ 0.7 $ 0.4 $ 0.7 $ 0.4 accrued liabilitiesDividend payable included $ ? $ 0.1 $ 0.4 $ 0.2 in other liabilitiesGain on sale of assets $ ? $ ? $ 3.5 $ ? Held 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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total Margin Total Margin Total Margin Total Margin Net income $ 179.0 26.4 % $ 150.4 23.0 % $ 350.7 25.6 % $ 284.8 22.3 %Depreciation andamortization of 45.9 6.8 45.7 7.0 92.0 6.7 92.2 7.2 fixed assetsAmortization of 41.0 6.0 33.6 5.2 82.0 6.0 66.9 5.2 intangible assetsInterest expense 34.2 5.0 30.5 4.7 67.6 5.0 62.4 4.9 Provision for 45.8 6.8 36.9 5.6 90.8 6.6 72.6 5.7 income taxesEBITDA 345.9 51.0 297.1 45.5 683.1 49.9 578.9 45.3 Acquisition-related 2.4 0.3 7.0 1.1 2.6 0.2 17.0 1.3 costs (earn-outs)Gain from ? ? ? ? (19.4 ) (1.4 ) ? ? dispositionsAdjusted EBITDA 348.3 51.3 304.1 46.6 666.3 48.7 595.9 46.6 Adjusted EBITDAfrom acquisitions (11.1 ) 1.2 (3.3 ) 0.5 (19.1 ) 1.7 (5.2 ) 0.6 and dispositionsOrganic adjusted $ 337.2 52.5 $ 300.8 47.1 $ 647.2 50.4 $ 590.7 47.2 EBITDA

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

Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Energy and Financial Energy and Financial Insurance Specialized Services Insurance Specialized Services Markets MarketsRevenues $ 486.4 $ 154.4 $ 38.0 $ 471.0 $ 137.3 $ 44.3 Revenues fromacquisitions and (14.1 ) (22.8 ) (0.1 ) (9.5 ) ? (5.0 )dispositionsOrganic revenues $ 472.3 $ 131.6 $ 37.9 $ 461.5 $ 137.3 $ 39.3 EBITDA $ 282.3 $ 52.3 $ 11.3 $ 242.7 $ 40.3 $ 14.1 Acquisition-related 2.4 ? ? 4.6 2.4 ? costs (earn-outs)Adjusted EBITDA 284.7 52.3 11.3 247.3 42.7 14.1 Adjusted EBITDAfrom acquisitions (4.0 ) (7.7 ) 0.6 (0.4 ) ? (2.9 )and dispositionsOrganic adjusted $ 280.7 $ 44.6 $ 11.9 $ 246.9 $ 42.7 $ 11.2 EBITDA

Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Energy and Financial Energy and Financial Insurance Specialized Services Insurance Specialized Services Markets MarketsRevenues $ 975.8 $ 314.5 $ 78.3 $ 924.5 $ 265.8 $ 87.3 Revenues fromacquisitions and (31.8 ) (51.6 ) (1.8 ) (17.0 ) ? (10.4 )dispositionsOrganic revenues $ 944.0 $ 262.9 $ 76.5 $ 907.5 $ 265.8 $ 76.9 EBITDA $ 554.7 $ 102.5 $ 25.9 $ 474.0 $ 77.5 $ 27.4 Acquisition-related 2.6 ? ? 12.0 5.0 ? costs (earn-outs)Gain from (15.9 ) ? (3.5 ) ? ? ? dispositionsAdjusted EBITDA 541.4 102.5 22.4 486.0 82.5 27.4 Adjusted EBITDAfrom acquisitions (3.3 ) (16.3 ) 0.5 0.2 1.0 (6.4 )and dispositionsOrganic adjusted $ 538.1 $ 86.2 $ 22.9 $ 486.2 $ 83.5 $ 21.0 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 June 30, 2020 Three Months Ended June 30, 2019 Energy and Financial Energy and Financial Insurance Specialized Services Insurance Specialized Services Markets MarketsEBITDA margin 58.0 % 33.9 % 29.7 % 51.5 % 29.3 % 31.9 %Acquisition-related 0.5 ? ? 1.0 1.8 ? costs (earn-outs)Adjusted EBITDA 58.5 33.9 29.7 52.5 31.1 31.9 margin

Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Energy and Financial Energy and Financial Insurance Specialized Services Insurance Specialized Services Markets MarketsEBITDA margin 56.8 % 32.6 % 33.1 % 51.3 % 29.2 % 31.3 %Acquisition-related 0.3 ? ? 1.3 1.8 ? costs (earn-outs)Gain from (1.6 ) ? (4.4 ) ? ? ? dispositionsAdjusted EBITDA 55.5 32.6 28.7 52.6 31.0 31.3 margin

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

Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Operating expenses $ 419.1 $ 434.3 $ 856.6 $ 856.9 Depreciation and amortization of (45.9 ) (45.7 ) (92.0 ) (92.2 )fixed assetsAmortization of intangible assets (41.0 ) (33.6 ) (82.0 ) (66.9 )Investment loss and others, net 0.7 0.5 2.9 0.9 Acquisition-related costs (2.4 ) (7.0 ) (2.6 ) (17.0 )(earn-outs)Gain from dispositions ? ? 19.4 ? Adjusted EBITDA expenses $ 330.5 $ 348.5 $ 702.3 $ 681.7

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

Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net income $ 179.0 $ 150.4 $ 350.7 $ 284.8 plus: Amortization of 41.0 33.6 82.0 66.9 intangiblesless: Income tax effect on (9.0 ) (7.0 ) (18.0 ) (14.1 )amortization of intangiblesplus: Acquisition-related costsand interest expense 2.4 7.1 2.6 17.6 (earn-outs)less: Income tax effect onacquisition-related costs and (0.5 ) (0.3 ) (0.6 ) (0.7 )interest expense (earn-outs)less: Gain from dispositions ? ? (19.4 ) ? plus: Income tax effect on gain ? ? 9.6 ? from dispositionsAdjusted net income $ 212.9 $ 183.8 $ 406.9 $ 354.5 Diluted EPS $ 1.08 $ 0.90 $ 2.12 $ 1.71 Diluted adjusted EPS $ 1.29 $ 1.10 $ 2.46 $ 2.13 Weighted-average diluted shares 165.1 166.7 165.4 166.6 outstanding

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

Three Months Ended Six Months Ended June 30, June 30, 2020 2019 Change 2020 2019 Change Net cashprovided by $ 249.5 $ 200.3 24.6 % $ 612.1 $ 566.4 8.1 %operatingactivitiesCapital (56.7 ) (46.9 ) 20.9 % (109.6 ) (92.1 ) 19.0 %expendituresFree cash $ 192.8 $ 153.4 25.7 % $ 502.5 $ 474.3 5.9 %flow