Net income for the fourth quarter of 2013 was
Total revenue for the twelve months ended
This press release may contain certain statements relating to future results which are forward-looking statements, including those relating to the Company's anticipated financial results for the fourth quarter and full year of 2013. These statements are not historical facts, but instead represent only the Company's current belief regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company's control. It is possible that the Company's actual results, financial condition and achievements may differ, possibly materially, from the anticipated results, financial condition and achievements contemplated by these forward-looking statements. These risks and uncertainties include, but are not limited to, the Company's determination as it finalizes its financial results for the fourth quarter and full year of 2013 that its financial results differ from the current preliminary unaudited numbers set forth herein, other factors that the Company may not have currently identified or quantified, and other risks, relevant factors and uncertainties identified in the Company's Annual Report on Form 10-K for the year ended
| Brown & Brown, Inc. | ||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||
| (in thousands, except per share data) | ||||||||||||||
| (unaudited) | ||||||||||||||
| For the Three Months Ended December 31, |
For the Twelve Months Ended December 31, |
|||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||
| REVENUES | ||||||||||||||
| Commissions and fees | $ | 339,364 | $ | 300,296 | $ | 1,355,503 | $ | 1,189,081 | ||||||
| Investment income | 128 | 236 | 638 | 797 | ||||||||||
| Other income, net | 3,673 | 2,298 | 7,138 | 10,154 | ||||||||||
| Total revenues | 343,165 | 302,830 | 1,363,279 | 1,200,032 | ||||||||||
| EXPENSES | ||||||||||||||
| Employee compensation and benefits | 179,460 | 158,467 | 683,000 | 608,506 | ||||||||||
| Non-cash stock-based compensation | 7,699 | 4,472 | 22,603 | 15,865 | ||||||||||
| Other operating expenses | 51,839 | 44,995 | 195,677 | 174,389 | ||||||||||
| Amortization | 17,792 | 16,123 | 67,932 | 63,573 | ||||||||||
| Depreciation | 4,589 | 3,990 | 17,485 | 15,373 | ||||||||||
| Interest | 4,324 | 4,004 | 16,440 | 16,097 | ||||||||||
| Change in estimated acquisition earn-out payables | 1,020 | 1,552 | 2,533 | 1,418 | ||||||||||
| Total expenses | 266,723 | 233,603 | 1,005,670 | 895,221 | ||||||||||
| Income before income taxes | 76,442 | 69,227 | 357,609 | 304,811 | ||||||||||
| Income taxes | 29,217 | 26,590 | 140,497 | 120,766 | ||||||||||
| Net income | $ | 47,225 | $ | 42,637 | $ | 217,112 | $ | 184,045 | ||||||
| Net income per share: | ||||||||||||||
| Basic | $ | 0.32 | $ | 0.30 | $ | 1.50 | $ | 1.28 | ||||||
| Diluted | $ | 0.32 | $ | 0.29 | $ | 1.48 | $ | 1.26 | ||||||
| Weighted average number of shares outstanding: | ||||||||||||||
| Basic | 141,355 | 139,681 | 141,033 | 139,364 | ||||||||||
| Diluted | 143,036 | 142,314 | 142,624 | 142,010 | ||||||||||
| Dividends declared per share | $ | 0.100 | $ | 0.090 | $ | 0.3700 | $ | 0.3450 | ||||||
| Brown & Brown, Inc. | |||||||||||||||||||||||
| INTERNAL GROWTH SCHEDULE | |||||||||||||||||||||||
| Core Organic Commissions and Fees(1) | |||||||||||||||||||||||
| Three Months Ended December 31, 2013 | |||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| Quarter Ended 12/31/13 |
Quarter Ended 12/31/12 |
Total Net Change |
Total Net Growth % |
Less Acquisition Revenues |
Internal Net Growth $ |
Internal Net Growth % |
|||||||||||||||||
| Retail(2) | $ | 184,996 | $ | 151,041 | $ | 33,955 | 22.5 | % | $ | 33,625 | $ | 330 | 0.2 | % | |||||||||
| National Programs | 73,528 | 64,090 | 9,438 | 14.7 | % | 3,094 | 6,344 | 9.9 | % | ||||||||||||||
| Wholesale Brokerage | 46,238 | 40,299 | 5,939 | 14.7 | % | - | 5,939 | 14.7 | % | ||||||||||||||
| Services | 28,273 | 34,398 | (6,125 | ) | -17.8 | % | - | (6,125 | ) | -17.8 | % | ||||||||||||
| Total Core Commissions and Fees (1) | $ | 333,035 |
$ | 289,828 |
$ | 43,207 |
14.9 |
% | $ | 36,719 |
$ | 6,488 |
2.2 |
% | |||||||||
| Reconciliation of Internal Growth Schedule | ||||||
| to Total Commissions and Fees | ||||||
| Included in the Consolidated Statements of Income | ||||||
| For the Three Months Ended December 31, 2013 and 2012 | ||||||
| (in thousands) | ||||||
| (unaudited) | ||||||
| Quarter Ended 12/31/13 |
Quarter Ended 12/31/12 |
|||||
| Total core commissions and fees(1) | $ | 333,035 | $ | 289,828 | ||
| Profit-sharing contingent commissions | 4,382 | 6,342 | ||||
| Guaranteed supplemental commissions | 1,947 | 1,937 | ||||
| Divested business | - | 2,189 | ||||
| Total commissions & fees | $ | 339,364 | $ | 300,296 | ||
| (1) | Total core commissions and fees are our total commissions and fees less (i) profit-sharing contingent commissions (revenues derived from special revenue-sharing commissions from insurance companies based upon the volume and the growth and/or profitability of the business placed with such companies during the prior year), (ii) guaranteed supplemental commissions (GSC) (revenues derived from special revenue-sharing commissions from insurance companies based solely upon the volume of the business placed with such companies during the current year),and (iii) divested business (commissions and fees generated from offices, books of business or niches sold by the Company or terminated). | |
| (2) | The Retail segment includes commissions and fees reported in the "Other" column of the Segment Information, which includes corporate and consolidation items. |
| Brown & Brown, Inc. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands, except per share data) | ||||||||
| (unaudited) | ||||||||
| December 31, | December 31, | |||||||
| 2013 | 2012 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 202,952 | $ | 219,821 | ||||
| Restricted cash and investments | 250,009 | 164,564 | ||||||
| Short-term investments | 10,624 | 8,183 | ||||||
| Premiums, commissions and fees receivable | 395,915 | 302,725 | ||||||
| Deferred income taxes | 29,276 | 24,408 | ||||||
| Other current assets | 39,260 | 39,811 | ||||||
| Total current assets | 928,036 | 759,512 | ||||||
| Fixed assets, net | 74,733 | 74,337 | ||||||
| Goodwill | 2,006,173 | 1,711,514 | ||||||
| Amortizable intangible assets, net | 618,888 | 566,538 | ||||||
| Other assets | 21,678 | 16,157 | ||||||
| Total assets | $ | 3,649,508 | $ | 3,128,058 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Premiums payable to insurance companies | $ | 534,360 | $ | 406,704 | ||||
| Premium deposits and credits due customers | 80,959 | 32,867 | ||||||
| Accounts payable | 34,158 | 48,524 | ||||||
| Accrued expenses and other liabilities | 157,400 | 79,593 | ||||||
| Current portion of long-term debt | 100,000 | 93 | ||||||
| Total current liabilities | 906,877 | 567,781 | ||||||
| Long-term debt | 380,000 | 450,000 | ||||||
| Deferred income taxes, net | 291,704 | 237,630 | ||||||
| Other liabilities | 63,786 | 65,314 | ||||||
| Shareholders' equity: | ||||||||
| Common stock, par value $0.10 per share; authorized 280,000 shares; issued and outstanding 145,419 at 2013 and 143,878 at 2012 | 14,542 | 14,388 | ||||||
| Additional paid-in capital | 371,960 | 335,872 | ||||||
| Retained earnings | 1,620,639 | 1,457,073 | ||||||
| Total shareholders' equity | 2,007,141 | 1,807,333 | ||||||
| Total liabilities and shareholders' equity | $ | 3,649,508 | $ | 3,128,058 | ||||
Chief Financial Officer
(386) 239-7250
Source: