DAYTONA BEACH, FL and TAMPA, FL, Apr 16, 2012 (MARKETWIRE via COMTEX) --Brown & Brown, Inc. (NYSE: BRO) today announced its preliminary, unaudited financial results for the first quarter of 2012.
Net income for the first quarter of 2012 was $49,433,000, or $0.34 per share, compared with $46,293,000, or $0.32 per share for the same quarter of 2011, an increase of 6.3%. Total revenues for the first quarter were $302,486,000, compared with 2011 first-quarter revenues of $262,228,000, an increase of 15.4%.
J. Hyatt Brown, Chairman and acting President and Chief Executive Officer of the Company, noted, "The 2012 first quarter produced results that were better than we anticipated. In addition to growing our earnings per share by 6.3%, we were pleased to note that our organic growth rate for our core commissions and fees revenue was a positive 0.9%."
Brown & Brown, Inc., through its subsidiaries, offers a broad range of insurance and reinsurance products and services. Additionally, certain Brown & Brown subsidiaries offer a variety of risk management, third party administration, and other services. Serving business, public entity, individual, trade and professional association clients nationwide, the Company is ranked by Business Insurance magazine as the United States' seventh largest independent insurance intermediary. The Company's Web address is www.bbinsurance.com.
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 first quarter of 2012. 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 first quarter of 2012 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 December 31, 2011, and the Company's other filings with the Securities and Exchange Commission. All forward-looking statements made herein are made only as of the date of this release, and the Company does not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which the Company hereafter becomes aware.
Brown & Brown, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
For the
Three Months Ended
March 31,
--------------------
2012 2011
--------- ---------
REVENUES
Commissions and fees $ 296,533 $ 261,452
Investment income 135 224
Other income, net 5,818 552
--------- ---------
Total revenues 302,486 262,228
--------- ---------
EXPENSES
Employee compensation and benefits 149,596 126,557
Non-cash stock-based compensation 3,747 2,773
Other operating expenses 43,400 36,076
Amortization 15,613 13,509
Depreciation 3,641 3,135
Interest 4,087 3,607
Change in estimated acquisition earn-out payables (388) (99)
--------- ---------
Total expenses 219,696 185,558
--------- ---------
Income before income taxes 82,790 76,670
Income taxes 33,357 30,377
--------- ---------
Net income $ 49,433 $ 46,293
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Net income per share:
Basic $ 0.34 $ 0.32
========= =========
Diluted $ 0.34 $ 0.32
========= =========
Weighted average number of shares outstanding:
Basic 139,001 138,351
========= =========
Diluted 141,500 140,648
========= =========
Dividends declared per share $ 0.0850 $ 0.08
========= =========
Brown & Brown, Inc.
INTERNAL GROWTH SCHEDULE
Core Commissions and Fees(1)
Three Months Ended March 31, 2012
(in thousands)
(unaudited)
Total Internal Internal
Quarter Quarter Total Net Less Net Net
Ended Ended Net Growth Acquisition Growth Growth
03/31/12 03/31/11 Change % Revenues $ %
-------- -------- ------- ------ ----------- -------- -------
Retail(2) $151,946 $140,365 $11,581 8.3% $ 12,544 $ (963) (0.7)%
National
Programs 53,630 34,095 19,535 57.3% 19,324 211 0.6%
Wholesale
Brokerage 38,382 35,871 2,511 7.0% 549 1,962 5.5%
Services 25,762 15,823 9,939 62.8% 9,060 879 5.6%
-------- -------- ------- ----------- --------
Total Core
Commiss-
ions and
Fees (1) $269,720 $226,154 $43,566 19.3% $ 41,477 $ 2,089 0.9%
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Reconciliation of Internal Growth Schedule
to Total Commissions and Fees
Included in the Consolidated Statements of Income
For the Three Months Ended March 31, 2012 and 2011
(in thousands)
(unaudited)
Quarter Quarter
Ended Ended
03/31/12 03/31/11
---------- ----------
Total core commissions and fees(1) $ 269,720 $ 226,154
Profit-sharing contingent commissions 24,221 28,880
Guaranteed supplemental commissions 2,592 3,304
Divested business - 3,114
---------- ----------
Total commissions & fees $ 296,533 $ 261,452
========== ==========
(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)
March 31, December 31,
2012 2011
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 155,714 $ 286,305
Restricted cash and investments 189,519 130,535
Short-term investments 7,645 7,627
Premiums, commissions and fees receivable 293,993 240,257
Deferred income taxes 15,579 19,863
Other current assets 35,341 23,540
------------ ------------
Total current assets 697,791 708,127
Fixed assets, net 68,298 61,360
Goodwill 1,649,420 1,323,469
Amortizable intangible assets, net 581,267 496,182
Other assets 20,671 17,873
------------ ------------
Total assets $ 3,017,447 $ 2,607,011
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Premiums payable to insurance companies $ 437,514 $ 327,096
Premium deposits and credits due customers 31,104 30,048
Accounts payable 46,479 22,384
Accrued expenses and other liabilities 85,522 100,865
Current portion of long-term debt 603 1,227
------------ ------------
Total current liabilities 601,222 481,620
Long-term debt 450,043 250,033
Deferred income taxes, net 215,349 178,052
Other liabilities 65,783 53,343
Shareholders' equity:
Common stock, par value $0.10 per share;
authorized 280,000 shares; issued and
outstanding 143,322 at 2012 and 143,352 at 2011 14,332 14,335
Additional paid-in capital 310,901 307,059
Retained earnings 1,359,817 1,322,562
Accumulated other comprehensive income - 7
------------ ------------
Total shareholders' equity 1,685,050 1,643,963
------------ ------------
Total liabilities and shareholders' equity $ 3,017,447 $ 2,607,011
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Cory T. Walker Chief Financial Officer (386) 239-7250
SOURCE: Brown & Brown, Inc.