Attached files
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| 8-K - 8-K - Verisk Analytics, Inc. | form8-k3312017.htm |
Exhibit 99.1
Verisk Analytics, Inc., Reports First-Quarter 2017 Financial Results
• | Revenue from continuing operations grew 2.0%; organic constant currency revenue growth from continuing operations was 2.5%. |
• | Income from continuing operations decreased 0.8% to $109 million; EBITDA from continuing operations decreased 1.1% to $246 million. |
• | Diluted GAAP earnings per share (GAAP EPS) from continuing operations of $0.64 were unchanged from the prior-year first quarter; diluted adjusted earnings per share (adjusted EPS) from continuing operations decreased 1.3% to $0.74. |
• | Net cash provided by operating activities was $318 million year-to-date. Free cash flow from continuing operations was $287 million year-to-date, an increase of 11.8%. |
• | Repurchases of Verisk common stock were $104 million in the quarter. |
JERSEY CITY, N.J., May 2, 2017 — Verisk Analytics, Inc. (Nasdaq:VRSK), a leading data analytics provider, today announced results for the quarter ended March 31, 2017.
Scott Stephenson, chairman, president, and CEO, said, "First-quarter revenue growth was unusually muted, though consistent with our expectations. We delivered leading margins and strong cash generation despite currency effects, a number of one-time items, and some moderating industry headwinds. Near-term we are confident that our results will improve from here as we sell existing and recently developed solutions. In addition, our teams are working hard on the new solutions in which we are investing, and long-term opportunities remain robust. We continue to repurchase our shares, an indication of our enduring confidence in the business."
Table 1: Summary of Results
(in millions, except per share amounts)
Note: Continuing operations reflect the 2016 sale of the healthcare services business.
Three Months Ended | ||||||||||
March 31, | ||||||||||
2017 | 2016 | Change | ||||||||
Revenues from continuing operations | $ | 502.6 | $ | 492.7 | 2.0 | % | ||||
Income from continuing operations | $ | 108.8 | $ | 109.7 | (0.8 | )% | ||||
EBITDA from continuing operations | $ | 245.7 | $ | 248.4 | (1.1 | )% | ||||
Adjusted net income from continuing operations | $ | 125.3 | $ | 127.4 | (1.6 | )% | ||||
Diluted GAAP EPS from continuing operations | $ | 0.64 | $ | 0.64 | — | |||||
Diluted adjusted EPS from continuing operations | $ | 0.74 | $ | 0.75 | (1.3 | )% | ||||
Revenue
Total revenue from continuing operations increased 2.0% in first-quarter 2017 compared with first-quarter 2016. Organic constant currency revenue growth from continuing operations was 2.5%. Insurance led the revenue growth in the quarter.
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Table 2: Revenues and Revenue Growth by Category
(in millions)
Note: Continuing operations reflect the 2016 sale of the healthcare services business.
Revenue Growth | ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
March 31, | March 31, 2017 | |||||||||||||||
2017 | 2016 | Reported | Organic | Organic Constant Currency | ||||||||||||
Insurance | $ | 178.6 | $ | 171.5 | 4.1 | % | 3.9 | % | 4.0 | % | ||||||
Energy and specialized markets | 106.3 | 112.9 | (5.9 | )% | (8.4 | )% | (2.1 | )% | ||||||||
Financial services | 28.3 | 28.5 | (0.5 | )% | (0.5 | )% | (0.1 | )% | ||||||||
Decision Analytics | 313.2 | 312.9 | 0.1 | % | (0.9 | )% | 1.5 | % | ||||||||
Industry-standard insurance programs | 145.6 | 137.4 | 5.9 | % | 4.6 | % | 4.6 | % | ||||||||
Property-specific rating and underwriting information | 43.8 | 42.4 | 3.5 | % | 2.8 | % | 2.8 | % | ||||||||
Risk Assessment | 189.4 | 179.8 | 5.4 | % | 4.2 | % | 4.2 | % | ||||||||
Revenues from continuing operations | $ | 502.6 | $ | 492.7 | 2.0 | % | 0.9 | % | 2.5 | % | ||||||
Decision Analytics segment revenue from continuing operations grew 0.1% in the first quarter of 2017 and 1.5% in organic constant currency.
• | Insurance category revenue increased 4.1%. Organic revenue, excluding recent acquisitions, currency effects, and one-time prior-year true-up revenue increased 6.5% in the quarter. Growth was led by strong performance in underwriting solutions. Claims analytics, loss quantification (adjusted for one-time prior-year true-up revenue), and catastrophe modeling solutions also contributed to growth in the quarter. |
• | Energy and specialized markets category revenue declined 5.9%. Organic revenue, excluding recent acquisitions and currency effects, declined 2.1%, primarily as a result of continuing end-market headwinds affecting the energy business and lower revenue in environmental health and safety solutions. |
• | Financial services category revenue decreased 0.5% in the quarter. The recent acquisition of Fintellix closed on March 31 and will start contributing to revenue in the second quarter. Strong growth in media effectiveness and good growth in core banking solutions were offset by several contracts completed in the fourth quarter. |
Risk Assessment segment revenue grew 5.4% in the quarter.
• | Revenue growth in industry-standard insurance programs was 5.9%. Organic revenue, excluding recent acquisitions and currency effects, increased 4.6% in the quarter, resulting primarily from the annual effect of growth in 2017 invoicing effective from January 1 and growth from new solutions. |
• | Property-specific rating and underwriting information revenue grew 3.5% in the first quarter. Organic revenue, excluding recent acquisitions and currency effects, increased 2.8% in the quarter. Growth was driven by increased revenue from existing customers of commercial underwriting solutions. |
Expenses, Income, and EBITDA
Cost of revenues from continuing operations increased 5.6% compared with first-quarter 2016. The year-over-year increase was primarily due to salaries and benefits to support innovation and business growth.
Selling, general, and administrative expense, or SG&A, from continuing operations increased 6.8% in the quarter due to salaries, technology, and acquisition-related costs.
Income from continuing operations decreased 0.8% to $109 million. EBITDA from continuing operations decreased 1.1% to $246 million.
• | The 5.6% decrease in Decision Analytics EBITDA from continuing operations to $131 million was the result of increased costs to support future anticipated revenue, acquisition-related costs, and currency effects. |
• | First-quarter 2017 EBITDA in Risk Assessment increased 4.7% to $114 million as a result of revenue growth and good expense management. |
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Earnings Per Share
Diluted GAAP EPS from continuing operations was $0.64 for first-quarter 2017. Diluted adjusted EPS from continuing operations was $0.74 for first-quarter 2017, a decrease of 1.3% compared with the same period in 2016. Diluted adjusted EPS from continuing operations decreased because modest revenue growth was more than offset by faster expense growth, a higher tax rate, and currency effects.
Cash Flow
Net cash provided by operating activities from continuing operations was $318 million for the three months ended March 31, 2017, an increase of 12.8%. Capital expenditures from continuing operations increased 22.9% to $31 million and were 6.2% of revenues for the three months ended March 31, 2017. Free cash flow from continuing operations was $287 million year-to-date, an increase of 11.8%.
Free cash flow from continuing operations represented 263.6% of income from continuing operations and 116.7% of EBITDA from continuing operations for the three months ended March 31, 2017.
Share Repurchases and Financing Activities
The company repurchased 1.3 million shares at an average price of $81.24 for a total cost of $104 million in the quarter. At March 31, 2017, the company had $532 million remaining under its share repurchase authorization.
Conference Call
Verisk’s management team will host a live audio webcast on Wednesday, May 3, 2017, at 8:30 a.m. EDT (5:30 a.m. PDT, 13:30 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 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 404-537-3406 for international participants using conference ID #7319814.
About Verisk Analytics
Verisk Analytics (Nasdaq:VRSK) is a leading data analytics provider serving customers in insurance, natural resources, and financial services. Using advanced technologies to collect and analyze billions of records, Verisk Analytics 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 Analytics helps customers protect people, property, and financial assets.
Headquartered in Jersey City, N.J., Verisk Analytics operates in 27 countries and is a member of Standard & Poor’s S&P 500® Index. In 2016, Forbes magazine named Verisk Analytics to its World’s Most Innovative Companies list and to its America’s Best Large Employers list. Verisk is one of only 14 companies to appear on both lists. For more information, please visit www.verisk.com.
Contact:
Investor Relations
David Cohen
AVP, Investor Relations and Strategic Finance
Verisk Analytics, Inc.
201-469-2174
david.e.cohen@verisk.com
Media
Rich Tauberman
MWW Group (for Verisk Analytics)
202-600-4546
rtauberman@mww.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
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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.
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 organic constant currency revenue, EBITDA, EBITDA margin, adjusted net income from continuing operations, adjusted EPS, and free cash flow, 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.
Our operating results reported in U.S. dollars are affected by foreign currency exchange rate fluctuations because the underlying foreign currencies in which we transact change in value over time compared to the U.S. dollar; accordingly, we present certain constant currency financial information to provide a framework to assess how our businesses performed excluding the impact of foreign currency exchange rate fluctuations. We use the term “constant currency” to present results that have been adjusted to exclude foreign currency impact. Foreign currency impact represents the difference in results that are attributable to fluctuations in the currency exchange rates used to convert the results for businesses where the functional currency is not the U.S. dollar. This impact is calculated by translating comparable prior period year results at the currency exchange rates used in the current period, rather than the exchange rates in effect during the prior period.
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 from continuing operations before interest expense, provision for income taxes, and depreciation and amortization expense.
Although securities analysts, lenders, and others frequently use EBITDA 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 requirements 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. |
See Table 3, below, for a reconciliation of EBITDA to income from continuing operations, Table 4 for a reconciliation of adjusted net income to income from continuing operations, and Table 5 for a reconciliation of free cash flow from continuing operations to net cash provided by operating activities.
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Table 3: Segment Results Summary and EBITDA Reconciliation
(in millions)
Three Months Ended | |||||||||||||||||||||||
March 31, 2017 | March 31, 2016 | ||||||||||||||||||||||
DA | RA | Total | DA | RA | Total | ||||||||||||||||||
Revenues | $ | 313.2 | $ | 189.4 | $ | 502.6 | $ | 312.9 | $ | 179.8 | $ | 492.7 | |||||||||||
Cost of revenues | (128.0 | ) | (54.9 | ) | (182.9 | ) | (121.6 | ) | (51.7 | ) | (173.3 | ) | |||||||||||
SG&A | (56.1 | ) | (19.8 | ) | (75.9 | ) | (52.3 | ) | (18.7 | ) | (71.0 | ) | |||||||||||
Depreciation and amortization of fixed and intangible assets | (47.4 | ) | (8.7 | ) | (56.1 | ) | (48.7 | ) | (7.1 | ) | (55.8 | ) | |||||||||||
Investment income and others, net | 2.2 | (0.3 | ) | 1.9 | 0.1 | (0.1 | ) | — | |||||||||||||||
Interest expense | N/A | N/A | (28.4 | ) | N/A | N/A | (32.0 | ) | |||||||||||||||
Provision for income tax | N/A | N/A | (52.4 | ) | N/A | N/A | (50.9 | ) | |||||||||||||||
Income from continuing operations | N/A | N/A | 108.8 | N/A | N/A | 109.7 | |||||||||||||||||
plus: Interest expense | N/A | N/A | 28.4 | N/A | N/A | 32.0 | |||||||||||||||||
plus: Provision for income tax | N/A | N/A | 52.4 | N/A | N/A | 50.9 | |||||||||||||||||
plus: Depreciation and amortization | 47.4 | 8.7 | 56.1 | 48.7 | 7.1 | 55.8 | |||||||||||||||||
EBITDA from continuing operations | $ | 131.3 | $ | 114.4 | $ | 245.7 | $ | 139.1 | $ | 109.3 | $ | 248.4 | |||||||||||
Income from continuing operations margin | N/A | N/A | 21.7 | % | N/A | N/A | 22.3 | % | |||||||||||||||
EBITDA from continuing operations margin | 41.9 | % | 60.4 | % | 48.9 | % | 44.4 | % | 60.8 | % | 50.4 | % | |||||||||||
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Table 4: Adjusted Net Income from Continuing Operations Reconciliation
(in millions, except per share amounts)
Three Months Ended | ||||||||||
March 31, | ||||||||||
2017 | 2016 | Change | ||||||||
Income from continuing operations | $ | 108.8 | $ | 109.7 | (0.8 | )% | ||||
plus: Amortization of intangible assets | 22.3 | 23.9 | ||||||||
less: Income tax effect on amortization of intangible assets | (5.8 | ) | (6.2 | ) | ||||||
Adjusted net income from continuing operations | $ | 125.3 | $ | 127.4 | (1.6 | )% | ||||
Basic adjusted EPS from continuing operations | $ | 0.75 | $ | 0.76 | (1.3 | )% | ||||
Diluted adjusted EPS from continuing operations | $ | 0.74 | $ | 0.75 | (1.3 | )% | ||||
Weighted average shares outstanding (in millions) | ||||||||||
Basic | 166.4 | 168.5 | ||||||||
Diluted | 170.2 | 171.5 | ||||||||
Table 5: Free Cash Flow Reconciliation
(in millions)
Three Months Ended | ||||||||||||||||||
March 31, | ||||||||||||||||||
2017 | 2016 | Change | ||||||||||||||||
Net cash provided by operating activities | $ | 317.9 | $ | 303.9 | 4.6 | % | ||||||||||||
less: Net cash provided by operating activities from discontinued operations | — | (22.1 | ) | (100.0 | )% | |||||||||||||
Capital expenditures | $ | (31.1 | ) | $ | (30.8 | ) | 1.1 | % | ||||||||||
less: Capital expenditures from discontinued operations | — | 5.5 | (100.0 | )% | ||||||||||||||
less: Capital expenditures from continuing operations | (31.1 | ) | (25.3 | ) | 22.9 | % | ||||||||||||
Free cash flow from continuing operations | $ | 286.8 | $ | 256.5 | 11.8 | % | ||||||||||||
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.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of March 31, 2017, and December 31, 2016
2017 | 2016 | ||||||
(In millions, except for share and per share data) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 155.0 | $ | 135.1 | |||
Available-for-sale securities | 3.6 | 3.4 | |||||
Accounts receivable, net of allowance for doubtful accounts of $4.1 and $3.4, respectively | 298.7 | 263.9 | |||||
Prepaid expenses | 25.0 | 28.9 | |||||
Income taxes receivable | 3.3 | 49.3 | |||||
Other current assets | 28.2 | 20.3 | |||||
Total current assets | 513.8 | 500.9 | |||||
Noncurrent assets: | |||||||
Fixed assets, net | 377.8 | 380.3 | |||||
Intangible assets, net | 1,027.2 | 1,010.8 | |||||
Goodwill | 2,653.3 | 2,578.1 | |||||
Deferred income tax assets | 15.8 | 15.6 | |||||
Other assets | 160.8 | 145.5 | |||||
Total assets | $ | 4,748.7 | $ | 4,631.2 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 162.1 | $ | 184.0 | |||
Short-term debt and current portion of long-term debt | 6.6 | 106.8 | |||||
Deferred revenues | 501.6 | 330.8 | |||||
Income tax payable | 2.1 | — | |||||
Total current liabilities | 672.4 | 621.6 | |||||
Noncurrent liabilities: | |||||||
Long-term debt | 2,281.0 | 2,280.2 | |||||
Deferred income taxes, net | 329.4 | 322.2 | |||||
Other liabilities | 80.3 | 74.8 | |||||
Total liabilities | 3,363.1 | 3,298.8 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Common stock, $.001 par value; 2,000,000,000 shares authorized; 544,003,038 shares issued and 165,891,699 and 166,915,772 shares outstanding, respectively | 0.1 | 0.1 | |||||
Additional paid-in capital | 2,134.1 | 2,121.6 | |||||
Treasury stock, at cost, 378,111,339 and 377,087,266 shares, respectively | (2,993.4 | ) | (2,891.4 | ) | |||
Retained earnings | 2,861.7 | 2,752.9 | |||||
Accumulated other comprehensive losses | (616.9 | ) | (650.8 | ) | |||
Total stockholders’ equity | 1,385.6 | 1,332.4 | |||||
Total liabilities and stockholders’ equity | $ | 4,748.7 | $ | 4,631.2 | |||
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VERISK ANALYTICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Three Months Ended March 31, 2017 and 2016
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
(In millions, except for share and per share data) | |||||||
Revenues | $ | 502.6 | $ | 492.7 | |||
Expenses: | |||||||
Cost of revenues (exclusive of items shown separately below) | 182.9 | 173.3 | |||||
Selling, general and administrative | 75.9 | 71.0 | |||||
Depreciation and amortization of fixed assets | 33.8 | 31.9 | |||||
Amortization of intangible assets | 22.3 | 23.9 | |||||
Total expenses | 314.9 | 300.1 | |||||
Operating income | 187.7 | 192.6 | |||||
Other income (expense): | |||||||
Investment income and others, net | 1.9 | — | |||||
Interest expense | (28.4 | ) | (32.0 | ) | |||
Total other expense, net | (26.5 | ) | (32.0 | ) | |||
Income from continuing operations before income taxes | 161.2 | 160.6 | |||||
Provision for income taxes | (52.4 | ) | (50.9 | ) | |||
Income from continuing operations | 108.8 | 109.7 | |||||
Discontinued operations | |||||||
Income from discontinued operations | — | 1.8 | |||||
Provision for income taxes from discontinued operations | — | (18.9 | ) | ||||
Loss from discontinued operations | — | (17.1 | ) | ||||
Net income | $ | 108.8 | $ | 92.6 | |||
Basic net income per share: | |||||||
Income from continuing operations | $ | 0.65 | $ | 0.65 | |||
Loss from discontinued operations | — | (0.10 | ) | ||||
Basic net income per share | $ | 0.65 | $ | 0.55 | |||
Diluted net income per share: | |||||||
Income from continuing operations | $ | 0.64 | $ | 0.64 | |||
Loss from discontinued operations | — | (0.10 | ) | ||||
Diluted net income per share | $ | 0.64 | $ | 0.54 | |||
Weighted average shares outstanding: | |||||||
Basic | 166,442,991 | 168,453,750 | |||||
Diluted | 170,150,862 | 171,480,884 | |||||
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VERISK ANALYTICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Three Months Ended March 31, 2017 and 2016
2017 | 2016 | ||||||
(In millions) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 108.8 | $ | 92.6 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization of fixed assets | 33.8 | 38.9 | |||||
Amortization of intangible assets | 22.3 | 29.8 | |||||
Amortization of debt issuance costs and original issue discount | 1.1 | 1.1 | |||||
Allowance for doubtful accounts | 0.8 | 0.5 | |||||
KSOP compensation expense | — | 4.3 | |||||
Stock based compensation | 6.5 | 5.5 | |||||
Realized loss on available-for-sale securities, net | — | 0.2 | |||||
Deferred income taxes | (0.7 | ) | 17.8 | ||||
Gain on disposal of fixed assets, net | — | (0.1 | ) | ||||
Changes in assets and liabilities, net of effects from acquisitions: | |||||||
Accounts receivable | (31.0 | ) | (34.0 | ) | |||
Prepaid expenses and other assets | (4.7 | ) | 4.1 | ||||
Income taxes | 48.1 | 49.6 | |||||
Accounts payable and accrued liabilities | (28.3 | ) | (46.1 | ) | |||
Deferred revenues | 168.1 | 146.5 | |||||
Other liabilities | (6.9 | ) | (6.8 | ) | |||
Net cash provided by operating activities | 317.9 | 303.9 | |||||
Cash flows from investing activities: | |||||||
Acquisitions, net of cash acquired of $3.6 and $0, respectively | (66.5 | ) | — | ||||
Escrow funding associated with acquisition | (9.8 | ) | — | ||||
Capital expenditures | (31.1 | ) | (30.8 | ) | |||
Purchases of available-for-sale securities | (0.1 | ) | — | ||||
Proceeds from sales and maturities of available-for-sale securities | 0.1 | 0.1 | |||||
Other investing activities, net | — | (0.6 | ) | ||||
Net cash used in investing activities | (107.4 | ) | (31.3 | ) | |||
Cash flows from financing activities: | |||||||
Repayment of short-term debt, net | (100.0 | ) | (165.0 | ) | |||
Repurchases of common stock | (99.3 | ) | (116.4 | ) | |||
Proceeds from stock options exercised | 7.5 | 4.7 | |||||
Other financing activities, net | (0.5 | ) | (1.1 | ) | |||
Net cash used in financing activities | (192.3 | ) | (277.8 | ) | |||
Effect of exchange rate changes | 1.7 | (1.3 | ) | ||||
Increase (decrease) in cash and cash equivalents | 19.9 | (6.5 | ) | ||||
Cash and cash equivalents, beginning of period | 135.1 | 138.3 | |||||
Cash and cash equivalents, end of period | $ | 155.0 | $ | 131.8 | |||
Supplemental disclosures: | |||||||
Taxes paid | $ | 4.8 | $ | 2.8 | |||
Interest paid | $ | 13.8 | $ | 17.5 | |||
Noncash investing and financing activities: | |||||||
Repurchases of common stock included in accounts payable and accrued liabilities | $ | 11.2 | $ | — | |||
Deferred tax liability established on date of acquisition | $ | 5.9 | $ | — | |||
Capital lease obligations | $ | — | $ | 0.3 | |||
Capital expenditures included in accounts payable and accrued liabilities | $ | 1.7 | $ | 1.7 | |||
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