DAYTONA BEACH, Fla., Jan. 24, 2022 (GLOBE NEWSWIRE) — Brown & Brown, Inc. (NYSE:BRO) (the “Company”) at the moment introduced its unaudited monetary outcomes for the fourth quarter and full yr of 2021.
Revenues for the fourth quarter of 2021 beneath U.S. typically accepted accounting ideas (“GAAP”) have been $738.5 million, growing $96.4 million, or 15.0%, in comparison with the fourth quarter of the prior yr, with commissions and costs growing by 15.3% and Organic Revenue(1) growing by 9.0%. Net earnings was $101.7 million, growing $4.4 million, or 4.5%, and diluted internet earnings per share elevated to $0.36, or 5.9% as in comparison with the fourth quarter of the prior yr. Diluted Net Income Per Share – Adjusted(2) elevated to $0.42, or 31.3%, in comparison with the fourth quarter of the prior yr.
Revenues for the twelve months ended December 31, 2021 beneath GAAP have been $3,051.4 million, growing $438.0 million, or 16.8%, as in comparison with 2020, with commissions and costs growing by 16.9%, and Organic Revenue growing by 10.4%. Net earnings was $587.1 million, growing $106.6 million, or 22.2%, and diluted internet earnings per share for the yr elevated to $2.07, or 22.5%, every as in comparison with 2020. Diluted Net Income Per Share – Adjusted elevated to $2.19 or 31.1% in comparison with 2020.
J. Powell Brown, president and chief govt officer of the Company, famous, “The fourth quarter was another strong performance for the team and is a capstone for a great 2021. I want to thank all of our outstanding teammates for winning more new business and retaining our great customers.”
Reconciliation of Commissions and Fees to Organic Revenue Three and Twelve Months Ended December 31, 2021 and 2020 (in tens of millions, unaudited)
(1) “Organic Revenue,” a non-GAAP measure, is our core commissions and costs much less: (i) the core commissions and costs earned for the primary 12 months by newly-acquired operations; (ii) divested enterprise (core commissions and costs generated from workplaces, books of enterprise or niches bought or terminated throughout the comparable interval); and (iii) the period-over-period influence of overseas forex translation, which is calculated by making use of current-year overseas trade charges to the identical interval within the prior yr. The time period “core commissions and fees” excludes profit-sharing contingent commissions and assured supplemental commissions, and due to this fact represents the revenues earned immediately from particular insurance coverage insurance policies bought and particular fee-based companies rendered. Organic Revenue could be expressed as a greenback quantity or a share price when describing Organic Revenue progress. We have traditionally considered Organic Revenue and Organic Revenue progress as vital indicators when assessing and evaluating our efficiency on a consolidated foundation and for every of our 4 segments, as a result of it permits us to find out a comparable, however non-GAAP, measurement of income progress that’s related to the income sources that have been an element of our enterprise in each the present and prior yr and which are anticipated to proceed sooner or later.
Reconciliation of Diluted Net Income Per Share to Diluted Net Income Per Share – Adjusted Three and Twelve Months Ended December 31, 2021 and 2020 (unaudited)
(2) “Diluted Net Income Per Share – Adjusted,” a non-GAAP measure, is outlined as diluted internet earnings per share, excluding the change in estimated acquisition earn-out payables. We imagine Diluted Net Income Per Share – Adjusted supplies a significant illustration of our working efficiency and improves the comparability of our outcomes between durations by excluding the influence of the change in estimated acquisition earn-out payables and sure different non-recurring or occasionally occurring gadgets which have a excessive diploma of variability from period-to-period and that we imagine usually are not indicative of the Company’s ongoing efficiency.
Income earlier than earnings taxes for the fourth quarter of 2021 was $140.8 million, an increase of $9.9 million, or 7.6%, and Income Before Income Taxes Margin(3) decreased to 19.1% from 20.4% as in comparison with the fourth quarter of the prior yr.
In order to offer a greater understanding of our enterprise, we consider EBITDAC(4) efficiency. We view EBITDAC and EBITDAC Margin(5) as vital indicators when assessing and evaluating our efficiency, as they current extra comparable, however non-GAAP, measurements of our working margins in a significant and constant method. EBITDAC for the fourth quarter of 2021 was $215.7 million, an increase of $41.8 million, or 24.0%, in comparison with the fourth quarter of the prior yr. EBITDAC Margin elevated to 29.2% within the fourth quarter of 2021, as in comparison with 27.1% within the fourth quarter of 2020.
Income earlier than earnings taxes for twelve months ended December 31, 2021 was $762.8 million, an increase of $138.7 million, or 22.2%, in contrast the prior yr. Income Before Income Taxes Margin elevated to 25.0% from 23.9%, as in comparison with the prior yr. EBITDAC for the twelve months ended December 31, 2021 was $1,021.1 million, an increase of $207.7 million, or 25.5% as in comparison with the 2020. EBITDAC Margin elevated to 33.5% for the twelve months ended December 31, 2021, as in comparison with 31.1% in 2020.
Reconciliation of Income Before Income Taxes to EBITDAC and Income Before Income Taxes Margin to EBITDAC Margin Three and Twelve Months Ended December 31, 2021 and 2020 (in tens of millions, unaudited)
(3) “Income Before Income Taxes Margin” is outlined as earnings earlier than earnings taxes divided by complete revenues. (4) “EBITDAC,” a non-GAAP measure, is outlined as earnings earlier than curiosity, earnings taxes, depreciation, amortization and the change in estimated acquisition earn-out payables. (5) “EBITDAC Margin,” a non-GAAP measure, is outlined as EBITDAC divided by complete revenues.
Brown & Brown, Inc. Consolidated Statements of Income (in tens of millions, besides per share information; unaudited)
Brown & Brown, Inc. Consolidated Balance Sheets (in tens of millions, besides per share information, unaudited)
Brown & Brown, Inc. Consolidated Statements of Cash Flows (in tens of millions, unaudited)
Conference name, webcast and slide presentation
A convention name to debate the outcomes of the fourth quarter and full yr of 2021 might be held on Tuesday, January 25, 2022 at 8:00 AM (EST). The Company could seek advice from a slide presentation throughout its convention name. You can entry the webcast and the slides from the “Investor Relations” part of the Company’s web site at www.bbinsurance.com.
About Brown & Brown
Brown & Brown, Inc. (NYSE: BRO) is a number one insurance coverage brokerage agency, delivering threat administration options to people and companies since 1939. With over 11,000 teammates in additional than 300 places throughout the U.S. and choose international markets, we’re dedicated to offering revolutionary methods to assist shield what our clients worth most. For extra data, please go to www.bbinsurance.com.
Forward-looking statements
This press launch could include sure statements regarding future outcomes that are “forward-looking statements” inside the which means of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are meant to be lined by the protected harbors created by these legal guidelines. These forward-looking statements embrace these regarding the Company’s anticipated monetary outcomes for the fourth quarter and full yr of 2021 and the potential results of the COVID-19 pandemic (“COVID-19”) on the Company’s enterprise, operations, monetary efficiency and prospects. These statements usually are not historic information, however as an alternative characterize solely the Company’s present perception concerning future occasions, many of which, by their nature, are inherently unsure and out of doors of the Company’s management. It is feasible that the Company’s precise outcomes, monetary situation and achievements could differ, presumably materially, from the anticipated outcomes, monetary situation and achievements contemplated by these forward-looking statements. Also, once we use phrases comparable to ‘anticipate’, ‘imagine’, ‘estimate’, ‘count on’, ‘intend’, ‘plan’, ‘most likely’ or related expressions, we’re making forward-looking statements. These dangers and uncertainties embrace, however usually are not restricted to, COVID-19 and the ensuing governmental and societal responses, the severity and period of COVID-19 (together with by way of any new variant strains of the underlying virus), the effectiveness of and accessibility to vaccines, the tempo and price at which vaccines are administered, actions taken by governmental authorities in response to COVID-19, and the direct and oblique influence of COVID-19 on the U.S. economic system, the worldwide economic system, and the Company’s enterprise, liquidity, clients, insurance coverage carriers and third events; the Company’s willpower because it finalizes its monetary outcomes for the fourth quarter and full yr of 2021 that its monetary outcomes differ from the present preliminary unaudited numbers set forth herein; the results of inflation; the lack to retain or rent certified workers, in addition to the loss of any of our govt officers or different key workers; acquisition-related dangers that might negatively have an effect on the success of our progress technique, together with the chance that we could not have the ability to efficiently establish appropriate acquisition candidates, full acquisitions, combine acquired companies into our operations and increase into new markets; a cybersecurity assault or every other interruption in data expertise and/or information safety and/or outsourcing relationships; the requirement for extra sources and time to adequately reply to dynamics ensuing from fast technological change; the loss of or vital change to any of our insurance coverage firm relationships, which may end in extra expense, loss of market share or materials lower in our profit-sharing contingent commissions, assured supplemental commissions or incentive commissions; opposed financial situations, pure disasters, or regulatory modifications in states the place we now have a focus of our enterprise; the lack to keep up our tradition or a change in administration, administration philosophy or our enterprise technique; dangers going through us in our Services Segment, together with our third-party claims administration operations, which are distinct from these we face in our insurance coverage middleman operations; the constraints of our system of disclosure and inner controls and procedures in stopping errors or fraud, or in informing administration of all materials data in a well timed method; the numerous management sure current shareholders have over the Company; dangers associated to our worldwide operations, which can require extra time and expense than our home operations to attain or preserve profitability; modifications in information privateness and safety legal guidelines and laws or any failure to adjust to such legal guidelines and laws; improper disclosure of confidential data; the potential opposed impact of sure precise or potential claims, regulatory actions or proceedings on our companies, outcomes of operations, monetary situation or liquidity; uncertainty in our enterprise practices and compensation preparations as a consequence of potential modifications in laws; regulatory modifications that might cut back our profitability or progress by growing compliance prices, expertise compliance, proscribing the services or products we could promote, the markets we could enter, the strategies by which we could promote our services and products, or the costs we could cost for our companies and the shape of compensation we could settle for from our clients, carriers and third-parties; a lower in demand for legal responsibility insurance coverage consequently of tort reform litigation; our failure to adjust to any covenants contained in our debt agreements; the chance that covenants in our debt agreements may forestall us from participating in sure doubtlessly useful actions; modifications within the U.S.-based credit score markets that may adversely have an effect on our enterprise, outcomes of operations and monetary situation; dangers related to the present rate of interest atmosphere, and to the extent we use debt to finance our investments, modifications in rates of interest will have an effect on our value of capital and internet funding earnings; disintermediation inside the insurance coverage trade, together with elevated competitors from insurance coverage corporations, expertise corporations and the monetary companies trade, in addition to the shift away from conventional insurance coverage markets; modifications in present U.S. or international financial situations; results associated to pandemics, epidemics, or outbreaks of infectious ailments; situations that end in decreased insurer capability; quarterly and annual variations in our commissions that consequence from the timing of coverage renewals and the web impact of new and misplaced enterprise manufacturing; intangible asset threat, together with the chance that our goodwill could turn into impaired sooner or later; different dangers and uncertainties as could also be detailed on occasion in our public bulletins and Securities and Exchange Commission filings; and different components that the Company could not have presently recognized or quantified. All forward-looking statements made herein are made solely as of the date of this launch, and the Company doesn’t undertake any obligation to publicly replace or appropriate any forward-looking statements to replicate occasions or circumstances that subsequently happen or of which the Company hereafter turns into conscious.
Non-GAAP supplemental monetary data
This press launch incorporates references to the next non-GAAP monetary measures as outlined in Regulation G of SEC guidelines: Organic Revenue, Diluted Net Income Per Share – Adjusted, EBITDAC and EBITDAC Margin.
Reconciliations of these supplemental non-GAAP monetary data to the Company’s GAAP data are contained on this earnings launch. These measures usually are not in accordance with, or an various to the GAAP data supplied within the Company’s condensed consolidated monetary statements. We current such non-GAAP supplemental monetary data as a result of we imagine such data is of curiosity to the funding neighborhood and since we imagine it supplies extra significant strategies of evaluating sure features of the Company’s working efficiency from interval to interval on a foundation that might not be in any other case obvious on a GAAP foundation. We imagine these non-GAAP measures enhance the comparability of outcomes between durations by excluding the influence of sure gadgets which have a excessive diploma of variability. We imagine that Organic Revenue supplies a significant illustration of the Company’s working efficiency; the Company has traditionally considered Organic Revenue and Organic Revenue progress as vital indicators when assessing and evaluating the efficiency on a consolidated foundation and for every of its 4 segments. We imagine Diluted Net Income Per Share – Adjusted supplies a significant illustration of our working efficiency and improves the comparability of our outcomes between durations by excluding the influence of the change in estimated acquisition earn-out payables and sure different non-recurring or occasionally occurring gadgets which have a excessive diploma of variability from period-to-period and that we imagine usually are not indicative of the Company’s ongoing efficiency. We view EBITDAC and EBITDAC Margin as vital indicators when assessing and evaluating our efficiency, as they current extra comparable measurements of our working margins in a significant and constant method. As disclosed in our most up-to-date proxy assertion, we use Organic Revenue and EBITDAC Margin for incentive compensation determinations for govt officers and different key workers.
Our trade friends could present related supplemental non-GAAP data with respect to a number of of these measures, though they might not use the identical or comparable terminology and will not make equivalent changes. This supplemental non-GAAP monetary data must be thought of along with, and never in lieu of, the Company’s condensed consolidated monetary statements.
For extra data:
R. Andrew Watts Chief Financial Officer (386) 239-5770