Morningstar Inc. (MORN, Financial) filed Quarterly Report for the period ended 2010-06-30.
Morningstar Inc. has a market cap of $2.25 billion; its shares were traded at around $45.74 with a P/E ratio of 30.5 and P/S ratio of 4.7. Morningstar Inc. had an annual average earning growth of 24.5% over the past 5 years.MORN is in the portfolios of Ron Baron of Baron Funds, Chuck Royce of Royce& Associates, Kenneth Fisher of Fisher Asset Management, LLC, Jim Simons of Renaissance Technologies LLC.
In the second quarter of 2010, our consolidated revenue increased 13.9% to $136.1 million. Revenue for the first half of the year increased 11.9% to $264.4 million. We had $12.7 million in incremental revenue from acquisitions during the second quarter, which contributed about 11 percentage points to our consolidated revenue growth. Currency movements had a slight positive effect in the second quarter, but a larger impact in the year-to-date period.
Excluding acquisitions and the impact of foreign currency translations, consolidated revenue increased by about $3.2 million, or 2.7%, in the second quarter of 2010. Higher revenue from Internet advertising, Morningstar Direct, and Retirement Advice were the main drivers behind the revenue increase. These positive factorsas well as smaller contributions from advisor software, Licensed Data, and Morningstar Managed Portfolioshelped offset the loss of revenue associated with the Global Analyst Research Settlement (GARS), which ended in July 2009. We had equity research revenue of $5.4 million related to GARS in the second quarter of 2009 and $10.9 million in the first half of 2009 that did not recur in 2010.
$37.1 million for the second quarter. Acquisitions contributed $5.1 million of additional revenue outside the United States, and foreign currency translations also had a slightly positive effect. Excluding acquisitions and the effect of foreign currency translations, non-U.S. revenue rose 3.5%, reflecting stronger product sales in Europe, Australia, and Canada.
Revenue from international operations rose $14.0 million, or 23.7%, to $72.8 million in the first half of 2010. Acquisitions contributed $9.2 million of additional revenue outside the United States, and foreign currency translations also had a positive effect of $4.4 million. Excluding acquisitions and the impact of foreign currency translations, non-U.S. revenue rose 0.6%.
Higher incentive compensation and employee benefit costs represented approximately half of the overall operating expense increase in the quarter. In early 2010, we began phasing in some of the benefits and other compensation-related expense we reduced in 2009. As a result, bonus expense increased $5.4 million in the second quarter and $8.0 million in the first half of 2010. Matching contributions to our 401(k) plan in the United States increased $0.8 million in the second quarter and $1.8 million for the year-to-date period because we partially reinstated this employee benefit in 2010. Sales commissions increased $2.5 million in the quarter and $4.7 million in the first six months of 2010, reflecting improved sales activity compared with the first half of 2009 as well as a change to one of our commission plans. In addition, healthcare benefit costs were up $1.4 million in the second quarter of 2010 and $1.6 million in the first half of 2010, mainly because of some unusually high medical claims.
Read the The complete Report
Morningstar Inc. has a market cap of $2.25 billion; its shares were traded at around $45.74 with a P/E ratio of 30.5 and P/S ratio of 4.7. Morningstar Inc. had an annual average earning growth of 24.5% over the past 5 years.MORN is in the portfolios of Ron Baron of Baron Funds, Chuck Royce of Royce& Associates, Kenneth Fisher of Fisher Asset Management, LLC, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
After generally strong performance earlier in the year, the U.S. equity market slipped into negative territory in the second quarter of 2010. Morningstars U.S. Market Index, a broad market benchmark, was down 11.3% during the quarter, but increased approximately 15% since June 2009. Total U.S. mutual fund assets increased to $10.5 trillion as of June 30, 2010, based on data from the Investment Company Institute (ICI), up from $10.0 trillion as of June 30, 2009.In the second quarter of 2010, our consolidated revenue increased 13.9% to $136.1 million. Revenue for the first half of the year increased 11.9% to $264.4 million. We had $12.7 million in incremental revenue from acquisitions during the second quarter, which contributed about 11 percentage points to our consolidated revenue growth. Currency movements had a slight positive effect in the second quarter, but a larger impact in the year-to-date period.
Excluding acquisitions and the impact of foreign currency translations, consolidated revenue increased by about $3.2 million, or 2.7%, in the second quarter of 2010. Higher revenue from Internet advertising, Morningstar Direct, and Retirement Advice were the main drivers behind the revenue increase. These positive factorsas well as smaller contributions from advisor software, Licensed Data, and Morningstar Managed Portfolioshelped offset the loss of revenue associated with the Global Analyst Research Settlement (GARS), which ended in July 2009. We had equity research revenue of $5.4 million related to GARS in the second quarter of 2009 and $10.9 million in the first half of 2009 that did not recur in 2010.
$37.1 million for the second quarter. Acquisitions contributed $5.1 million of additional revenue outside the United States, and foreign currency translations also had a slightly positive effect. Excluding acquisitions and the effect of foreign currency translations, non-U.S. revenue rose 3.5%, reflecting stronger product sales in Europe, Australia, and Canada.
Revenue from international operations rose $14.0 million, or 23.7%, to $72.8 million in the first half of 2010. Acquisitions contributed $9.2 million of additional revenue outside the United States, and foreign currency translations also had a positive effect of $4.4 million. Excluding acquisitions and the impact of foreign currency translations, non-U.S. revenue rose 0.6%.
Higher incentive compensation and employee benefit costs represented approximately half of the overall operating expense increase in the quarter. In early 2010, we began phasing in some of the benefits and other compensation-related expense we reduced in 2009. As a result, bonus expense increased $5.4 million in the second quarter and $8.0 million in the first half of 2010. Matching contributions to our 401(k) plan in the United States increased $0.8 million in the second quarter and $1.8 million for the year-to-date period because we partially reinstated this employee benefit in 2010. Sales commissions increased $2.5 million in the quarter and $4.7 million in the first six months of 2010, reflecting improved sales activity compared with the first half of 2009 as well as a change to one of our commission plans. In addition, healthcare benefit costs were up $1.4 million in the second quarter of 2010 and $1.6 million in the first half of 2010, mainly because of some unusually high medical claims.
Read the The complete Report
