DAYTONA BEACH, Fla., April 25, 2022 (GLOBE NEWSWIRE) — Brown & Brown, Inc. (NYSE:BRO) (the “Company”) at this time introduced its unaudited monetary outcomes for the primary quarter of 2022.
Revenues for the primary quarter of 2022 beneath U.S. typically accepted accounting ideas (“GAAP”) had been $904.7 million, growing $89.4 million, or 11.0%, in comparison with the primary quarter of the prior yr, with commissions and charges growing by 11.1% and Organic Revenue growing by 7.8%. Income earlier than earnings taxes was $265.0 million, growing 10.8% from the prior yr with Income Before Income Taxes Margin remaining in step with the prior yr at 29.3%. EBITDAC – Adjusted was $323.3 million, growing 11.1% from the prior yr with EBITDAC Margin – Adjusted remaining in step with the prior yr at 35.7%. Net earnings was $220.3 million, growing $20.6 million, or 10.3%, and diluted internet earnings per share elevated to $0.77, or 10.0% as in comparison with the primary quarter of the prior yr. Diluted Net Income Per Share – Adjusted elevated to $0.78, or 11.4%, in comparison with the primary quarter of the prior yr.
J. Powell Brown, president and chief government officer of the Company, famous, “We are very pleased with the strong results achieved for the first quarter of 2022. Our teammates continue to perform at a high level, delivering innovative solutions to our customers.”
In addition, the Company at this time introduced that the Board of Directors has declared an everyday quarterly money dividend of $0.1025 per share. The dividend is payable on May 18, 2022, to shareholders of file on May 9, 2022.
See info relating to non-GAAP measures offered later on this press launch.
See info relating to non-GAAP measures offered later on this press launch.
See info relating to non-GAAP measures offered later on this press launch.
Conference name, webcast and slide presentation
A convention name to debate the outcomes of the primary quarter of 2022 might be held on Tuesday, April 26, 2022 at 8:00 AM (EDT). The Company might check with 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 danger administration options to people and companies since 1939. With over 12,000 teammates in additional than 350 areas throughout the U.S. and choose world markets, we’re dedicated to offering progressive methods to assist shield what our clients worth most. For extra info, please go to www.bbinsurance.com.
Forward-looking statements
This press launch might comprise sure statements referring to future outcomes that are “forward-looking statements” inside the that 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 secure harbors created by these legal guidelines. These forward-looking statements embody details about attainable or assumed future outcomes of our operations. All statements, apart from statements of historic details, included on this press launch that deal with actions, occasions or developments that we count on or anticipate might happen sooner or later, together with these referring to the Company’s anticipated monetary outcomes for the primary quarter of 2022 and the potential results of the COVID-19 pandemic (“COVID-19”) on the Company’s enterprise, operations, monetary efficiency and prospects, are forward-looking statements. These statements will not be historic details, however as a substitute characterize solely the Company’s present perception relating to future occasions, many of which, by their nature, are inherently unsure and outdoors of the Company’s management. It is feasible that the Company’s precise outcomes, monetary situation and achievements might differ, probably materially, from the anticipated outcomes, monetary situation and achievements contemplated by these forward-looking statements. Also, after we use phrases resembling ‘may’, ‘will’, ‘should’, ‘continue’, ‘anticipate’, ‘imagine’, ‘estimate’, ‘count on’, ‘intend’, ‘plan’, ‘in all probability’ or related expressions, we’re making forward-looking statements. These dangers and uncertainties embody, however will not be restricted to, COVID-19 and the ensuing governmental and societal responses, the severity and period of COVID-19 (together with via any new variant strains of the underlying virus), the effectiveness of and accessibility to vaccines, the tempo and fee 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 primary quarter of 2022 that its monetary outcomes differ from the present preliminary unaudited numbers set forth herein; the consequences of inflation; the shortcoming to retain or rent certified staff, in addition to the loss of any of our government officers or different key staff; acquisition-related dangers that might negatively have an effect on the success of our progress technique, together with the likelihood that we might not have the ability to efficiently establish appropriate acquisition candidates, full acquisitions, combine acquired companies into our operations and broaden into new markets; a cybersecurity assault or some other interruption in info 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 might lead to extra expense, loss of market share or materials lower in our profit-sharing contingent commissions, assured supplemental commissions or incentive commissions; antagonistic financial circumstances, pure disasters, or regulatory modifications in states the place we’ve got a focus of our enterprise; the shortcoming to take care of our tradition or a change in administration, administration philosophy or our enterprise technique; dangers dealing with 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 info in a well timed method; the numerous management sure current shareholders have over the Company; dangers associated to our worldwide operations, which lead to extra dangers and require extra administration time and expense than our home operations to realize or keep profitability; modifications in information privateness and safety legal guidelines and rules or any failure to adjust to such legal guidelines and rules; improper disclosure of confidential info; the potential antagonistic 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 because of potential modifications in rules; regulatory modifications that might scale back our profitability or progress by growing compliance prices, expertise compliance, proscribing the services or products we might promote, the markets we might enter, the strategies by which we might promote our services and products, or the costs we might cost for our providers and the shape of compensation we might settle for from our clients, carriers and third-parties; a lower in demand for legal responsibility insurance coverage consequently of tort reform laws; our failure to adjust to any covenants contained in our debt agreements; the likelihood that covenants in our debt agreements might forestall us from partaking in sure probably 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 firms, expertise firms and the monetary providers trade, in addition to the shift away from conventional insurance coverage markets; modifications in present U.S. or world financial circumstances; results associated to pandemics, epidemics, or outbreaks of infectious ailments; circumstances that lead to diminished insurer capability; quarterly and annual variations in our commissions that end result from the timing of coverage renewals and the web impact of new and misplaced enterprise manufacturing; intangible asset danger, together with the likelihood that our goodwill might change into impaired sooner or later; modifications in our credit score scores; volatility in our inventory worth; the consequences of current, pending and future acquisitions on our enterprise relationships, working outcomes and enterprise typically; different dangers and uncertainties as could also be detailed every now and then in our public bulletins and Securities and Exchange Commission (“SEC”) filings; and different components that the Company might 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 mirror occasions or circumstances that subsequently happen or of which the Company hereafter turns into conscious.
Non-GAAP supplemental monetary info
This press launch incorporates references to “non-GAAP financial measures” as outlined in SEC Regulation G, consisting of Total Revenues – Adjusted, Organic Revenue, EBITDAC, EBITDAC Margin, EBITDAC – Adjusted, EBITDAC Margin – Adjusted and Diluted Net Income Per Share – Adjusted. We current these measures as a result of we imagine such info is of curiosity to the funding group and since we imagine it supplies extra significant strategies to judge the Company’s working efficiency from interval to interval on a foundation that is probably not in any other case obvious on a GAAP foundation as a result of influence of sure objects which have a excessive diploma of variability and that we imagine will not be indicative of ongoing efficiency. This non-GAAP monetary info ought to be thought of along with, not in lieu of, the Company’s consolidated earnings statements and steadiness sheets as of the related date. Consistent with Regulation G, an outline of such info is supplied under and a reconciliation of such objects to GAAP info could be discovered inside this press launch in addition to in our periodic filings with the SEC.
We view Organic Revenue and Organic Revenue progress as essential 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 had been an element of our enterprise in each the present and prior yr and which are anticipated to proceed sooner or later. In addition, we imagine Diluted Net Income Per Share – Adjusted supplies a significant illustration of our working efficiency and improves the comparability of our outcomes between intervals by excluding the influence of the change in estimated acquisition earn-out payables, the influence of international forex translation and sure different non-recurring or sometimes occurring objects. We additionally view EBITDAC and EBITDAC Margin as essential 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, Diluted Net Income Per Share – Adjusted and EBITDAC Margin as key efficiency metrics for our short-term and long-term incentive compensation plans for government officers and different key staff.
Beginning January 1, 2022, we not exclude assured supplemental commissions (“GSCs”) from core commissions and charges and, due to this fact, GSCs are a part of Organic Revenue. All present and prior intervals contained inside this press launch have been adjusted for this remedy. GSCs are a steady supply of income which are extremely correlated to core commissions, so isolating them individually supplies no significant incremental worth in evaluating our income.
Beginning January 1, 2022, the next, along with the change in estimated acquisition earn-out payables, are excluded from sure non-GAAP measures, as we imagine these quantities will not be indicative of the continued working efficiency of the enterprise and will not be simply comparable from period-to-period:
“(Gain)/loss on disposal,” a caption on our consolidated statements of earnings which displays internet proceeds obtained as in comparison with internet ebook worth associated to gross sales of books of enterprise and different divestiture transactions, such because the disposal of a enterprise via sale or closure.“Acquisition/Integration Costs,” which characterize the acquisition and integration prices (e.g., prices related to regulatory filings, authorized/accounting providers, due diligence and the prices of integrating our info expertise programs) arising out of our acquisitions of GRP (Jersey) Holdco Limited and its enterprise, Orchid Underwriters Agency and CrossCover Insurance Services, and BdB Limited firms, which aren’t anticipated to happen on an ongoing foundation sooner or later.The period-over-period influence of international forex translation (“Foreign Currency Translation”), which is calculated by making use of current-year international alternate charges to the assorted useful currencies in our enterprise to our reporting forex of US {dollars} for a similar interval within the prior yr.
We are presenting EBITDAC – Adjusted, EBITDAC Margin – Adjusted and Diluted Net Income Per Share – Adjusted for the present and prior yr intervals contained inside this press launch so these non-GAAP monetary measures evaluate each intervals on the identical foundation.
Non-GAAP Revenue Measures
Total Revenues – Adjusted is our complete revenues, excluding the period-over-period influence of Foreign Currency Translation.Organic Revenue is our core commissions and charges much less: (i) the core commissions and charges earned for the primary 12 months by newly acquired operations; (ii) divested enterprise (core commissions and charges generated from places of work, books of enterprise or niches bought or terminated through the comparable interval); and (iii) the period-over-period influence of Foreign Currency Translation. The time period “core commissions and fees” excludes profit-sharing contingent commissions and due to this fact represents the revenues earned immediately from particular insurance coverage insurance policies bought and particular fee-based providers rendered. Organic Revenue could be expressed as a greenback quantity or a share fee when describing Organic Revenue progress.
Non-GAAP Earnings Measures
EBITDAC is outlined as earnings earlier than curiosity, earnings taxes, depreciation, amortization and the change in estimated acquisition earn-out payables.EBITDAC Margin is outlined as EBITDAC divided by complete revenues.EBITDAC – Adjusted is outlined as EBITDAC, excluding (i) (achieve)/loss on disposal, (ii) Acquisition/Integration Costs and (iii) the period-over-period influence of Foreign Currency Translation.EBITDAC Margin – Adjusted is outlined as EBITDAC – Adjusted divided by Total Revenues – Adjusted.Diluted Net Income Per Share – Adjusted is outlined as diluted internet earnings per share, excluding the after-tax influence of (i) the change in estimated acquisition earn-out payables, (ii) (achieve)/loss on disposal, (iii) Acquisition/Integration Costs and (iv) the period-over-period influence of Foreign Currency Translation.
Our trade friends might present related supplemental non-GAAP info with respect to a number of of these measures, though they could not use the identical or comparable terminology and will not make an identical changes and, due to this fact, comparability could also be restricted. This supplemental non-GAAP monetary info ought to be thought of along with, and never in lieu of, the Company’s condensed consolidated monetary statements.
For extra info:
R. Andrew Watts Chief Financial Officer (386) 239-5770