DAYTONA BEACH, FL and TAMPA, FL -- (Marketwire) -- 02/03/12 -- Brown & Brown, Inc. (NYSE: BRO) today announced its financial results for the fourth quarter of 2011.
Net income for the fourth quarter of 2011 was $36,494,000, or $0.25 per share, compared with $32,146,000, or $0.22 per share for the same quarter of 2010, an increase of 13.5%. Total revenue for the fourth quarter ended December 31, 2011 was $244,097,000, compared with 2010 fourth-quarter revenue of $229,938,000, an increase of 6.2%.
Total revenue for the twelve months ended December 31, 2011 was $1,014,000,000, compared with total revenue for the same period of 2010 of $973,492,000, an increase of 4.2%. Net income for the twelve-month period ended December 31, 2011 was $163,995,000, or $1.13 per share, compared with $161,752,000, or $1.12 per share for the same period of 2010, an increase of 1.4%.
J. Hyatt Brown, Chairman and acting President and Chief Executive Officer of the Company, noted, "We congratulate Powell Brown and his senior leadership team and all of our people on the achievement of one of our intermediate goals of exceeding $1 billion in total revenues. We challenged our team with this $1 billion goal shortly after the end of 2001 when we attained $365 million in total revenues. To reach this goal and to nearly triple our revenues during this time period, given the overwhelming economic headwinds of the last four years, is I believe a testament to the strength, focus and dedication of each individual in our company."
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 fourth quarter of 2011 and the twelve months ended December 31, 2011. 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 of 2011 and the twelve months ended December 31, 2011 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 twelve months ended December 31, 2010, subsequent Reports on Form 10-Q and Form 8-K 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 For the
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------------- --------------------------
2011 2010 2011 2010
------------ ------------ ------------ ------------
REVENUES
Commissions and fees $ 241,350 $ 229,088 $ 1,005,962 $ 966,917
Investment income 333 304 1,267 1,326
Other income, net 2,414 546 6,313 5,249
------------ ------------ ------------ ------------
Total revenues 244,097 229,938 1,013,542 973,492
------------ ------------ ------------ ------------
EXPENSES
Employee compensation
and benefits 129,389 122,264 508,675 487,820
Non-cash stock-based
compensation 2,856 1,615 11,194 6,845
Other operating
expenses 34,590 34,595 144,079 135,851
Amortization 13,965 13,370 54,755 51,442
Depreciation 3,116 3,141 12,392 12,639
Interest 3,352 3,624 14,132 14,471
Change in estimated
acquisition earn-out
payables (2,862) (638) (2,206) (1,674)
------------ ------------ ------------ ------------
Total expenses 184,406 177,971 743,021 707,394
------------ ------------ ------------ ------------
Income before income
taxes 59,691 51,967 270,521 266,098
Income taxes 23,197 19,821 106,526 104,346
------------ ------------ ------------ ------------
Net income $ 36,494 $ 32,146 $ 163,995 $ 161,752
============ ============ ============ ============
Net income per share:
Basic $ 0.25 $ 0.23 $ 1.15 $ 1.14
============ ============ ============ ============
Diluted $ 0.25 $ 0.22 $ 1.13 $ 1.12
============ ============ ============ ============
Weighted average
number of shares
outstanding:
Basic 138,796 138,190 138,582 137,924
============ ============ ============ ============
Diluted 140,547 139,660 140,264 139,318
============ ============ ============ ============
Dividends declared
per share $ 0.0850 $ 0.08 $ 0.3250 $ 0.3125
============ ============ ============ ============
Brown & Brown, Inc.
INTERNAL GROWTH SCHEDULE
Core Commissions and Fees (1)
Three Months Ended December 31, 2011
(in thousands)
(unaudited)
Less
Quarter Quarter Total Total Acquisit Internal Internal
Ended Ended Net Net ion Net Net
12/31/11 12/31/10 Change Growth % Revenues Growth $ Growth %
-------- -------- -------- -------- -------- -------- --------
Florida Retail $37,820 $37,236 $584 1.6% $607 $(23) (0.1)%
National
Retail 78,667 73,171 5,496 7.5% 8,669 (3,173) (4.3)%
Western Retail 26,177 21,709 4,468 20.6% 6,026 (1,558) (7.2)%
-------- -------- -------- -------- --------
Total Retail 142,664 132,116 10,548 8.0% 15,302 (4,754) (3.6)%
-------- -------- -------- -------- --------
Professional
Programs 10,365 10,842 (477) (4.4)% - (477) (4.4)%
Special
Programs 34,187 30,107 4,080 13.6% 1,560 2,520 8.4%
-------- -------- -------- -------- --------
Total National
Programs 44,552 40,949 3,603 8.8% 1,560 2,043 5.0%
-------- -------- -------- -------- --------
Wholesale
Brokerage 32,842 31,857 985 3.1% - 985 3.1%
Services 16,482 15,975 507 3.2% 97 410 2.6%
-------- -------- -------- -------- --------
Total Core
Commissions
and Fees(1) $236,540 $220,897 $15,643 7.1% $16,959 $(1,316) (0.6)%
======== ======== ======== ======== ======== ======== ========
Reconciliation of Internal Growth Schedule
to Total Commissions and Fees
Included in the Consolidated Statements of Income
For the Three Months Ended December 31, 2011 and 2010
(in thousands)
(unaudited)
Quarter Quarter
Ended Ended
12/31/11 12/31/10
----------------- -------------
Total core commissions and fees(1) $ 236,540 $ 220,897
Contingent commissions 4,810 6,385
Divested business - 1,806
----------------- -------------
Total commission & fees $ 241,350 $ 229,088
================= =============
(1) Total core commissions and fees are our total commissions and fees less (i) profit-sharing contingent commissions (revenue 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), and (ii) divested business (commissions and fees generated from offices, books of business or niches sold by the Company or terminated).
Brown & Brown, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
December 31, December 31,
2011 2010
------------------ ------------------
ASSETS
Current assets:
Cash and cash equivalents $ 286,305 $ 272,984
Restricted cash and investments 130,535 123,594
Short-term investments 7,627 7,678
Premiums, commissions and fees
receivable 240,257 214,446
Deferred income taxes 19,863 20,076
Other current assets 23,540 14,031
------------------ ------------------
Total current assets 708,127 652,809
Fixed assets, net 61,360 59,713
Goodwill 1,323,469 1,194,827
Amortizable intangible assets, net 496,182 481,900
Other assets 17,873 11,565
------------------ ------------------
Total assets $ 2,607,011 $ 2,400,814
================== ==================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Premiums payable to insurance
companies $ 327,096 $ 311,346
Premium deposits and credits due
customers 30,048 28,509
Accounts payable 22,384 33,693
Accrued expenses and other
liabilities 100,865 94,947
Current portion of long-term debt 1,227 1,662
------------------ ------------------
Total current liabilities 481,620 470,157
Long-term debt 250,033 250,067
Deferred income taxes, net 178,052 146,482
Other liabilities 53,343 27,764
Shareholders' equity:
Common stock, par value $0.10 per
share; authorized 280,000 shares;
issued and outstanding 143,352 at
2011 and 142,795 at 2010 14,335 14,279
Additional paid-in capital 307,059 286,997
Retained earnings 1,322,562 1,205,061
Accumulated other comprehensive
income 7 7
------------------ ------------------
Total shareholders' equity 1,643,963 1,506,344
------------------ ------------------
Total liabilities and shareholders'
equity $ 2,607,011 $ 2,400,814
================== ==================
Cory T. Walker
Chief Financial Officer
(386) 239-7250
