DAYTONA BEACH, FL and TAMPA, FL, Apr 18, 2011 (MARKETWIRE via COMTEX) --
Brown & Brown, Inc. (NYSE: BRO) today announced its financial results for the first quarter of 2011.
Net income for the first quarter of 2011 was $46,293,000, or $0.32 per share, compared with $44,128,000, or $0.31 per share for the same quarter of 2010, an increase of 4.9%. Total revenue for the first quarter ended March 31, 2011 was $262,228,000, compared with 2010 first-quarter revenue of $252,273,000, and increase of 3.9%.
J. Powell Brown, President and Chief Executive Officer of Brown & Brown, Inc., noted, "We are pleased with the continued incremental improvement in our operating results. Many of our middle-market clients continue to experience pressure on their businesses, with the consequence that their revenues and payrolls are flat to slightly down. Yet our team continues to deliver for our clients, as evidenced by our Wholesale Brokerage Division's positive first-quarter performance."
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 future financial results and to acquisition opportunities. 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. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results and condition, as well as its other achievements, are contained in the Company's filings with the Securities and Exchange Commission. Some factors include: general economic conditions around the country; downward commercial property and casualty premium pressures; the effects of legislative and regulatory changes in Florida pertaining to the insurance industry, including those relating to coastal property coverages; the competitive environment; the integration of the Company's operations with those of businesses or assets the Company has acquired or may acquire in the future and the failure to realize the expected benefits of such integration; and the potential occurrence of a disaster that affects certain areas of the States of California, Florida, Indiana, Michigan, New Jersey, New York, Pennsylvania, Texas and/or Washington, where significant portions of the Company's business are concentrated. 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
For the Three Months Ended March 31, 2011 and 2010
(in thousands, except per share data)
(unaudited)
2011 2010
---------- ----------
REVENUES
Commissions and fees $ 261,452 $ 250,674
Investment income 224 331
Other income, net 552 1,268
---------- ----------
Total revenues 262,228 252,273
---------- ----------
EXPENSES
Employee compensation and benefits 126,557 122,183
Non-cash stock-based compensation 2,773 1,955
Other operating expenses 36,076 36,333
Amortization 13,509 12,553
Depreciation 3,135 3,253
Interest 3,607 3,608
Change in estimated acquisition earn-out payables (99) (696)
---------- ----------
Total expenses 185,558 179,189
---------- ----------
Income before income taxes 76,670 73,084
Income taxes 30,377 28,956
---------- ----------
Net income $ 46,293 $ 44,128
========== ==========
Net income per share:
Basic $ 0.32 $ 0.31
========== ==========
Diluted $ 0.32 $ 0.31
========== ==========
Weighted average number of shares outstanding:
Basic 138,351 137,623
========== ==========
Diluted 140,648 137,791
========== ==========
Dividends declared per share $ 0.0800 $ 0.0775
========== ==========
Brown & Brown, Inc.
INTERNAL GROWTH SCHEDULE
Core Commissions and Fees(1)
Three Months Ended March 31, 2011
(in thousands)
(unaudited)
Total Less Internal
Quarter Quarter Total Net Acquisi- Internal Net
Ended Ended Net Growth tion Net Growth
03/31/11 03/31/10 Change % Revenues Growth $ %
-------- -------- -------- ------ -------- -------- ------
Florida
Retail $ 38,626 $ 37,778 $ 848 2.2% $ 1,779 $ (931) (2.5)%
National
Retail 82,223 77,324 4,899 6.3% 7,422 (2,523) (3.3)%
Western
Retail 24,658 21,958 2,700 12.3% 3,360 (660) (3.0)%
-------- -------- -------- -------- --------
Total
Retail 145,507 137,060 8,447 6.2% 12,561 (4,114) (3.0)%
-------- -------- -------- -------- --------
Professional
Programs 9,523 9,826 (303) (3.1)% - (303) (3.1)%
Special
Programs 27,663 28,542 (879) (3.1)% - (879) (3.1)%
-------- -------- -------- -------- --------
Total
National
Programs 37,186 38,368 (1,182) (3.1)% - (1,182) (3.1)%
-------- -------- -------- -------- --------
Wholesale
Brokerage 34,056 33,723 333 1.0% - 333 1.0%
Services 15,823 8,996 6,827 75.9% 6,856 (29) (0.3)%
-------- -------- -------- -------- --------
Total Core
Commissions
and
Fees(1) $232,572 $218,147 $ 14,425 6.6% $ 19,417 $ (4,992) (2.3)%
======== ======== ======== ======== ========
Reconciliation of Internal Growth Schedule
to Total Commissions and Fees
Included in the Consolidated Statements of Income
For the Three Months Ended March 31, 2011 and 2010
(in thousands)
(unaudited)
Quarter Quarter
Ended Ended
03/31/11 03/31/10
----------------- --------------
Total core commissions and fees(1) $ 232,572 $ 218,147
Contingent commissions 28,880 32,236
Divested business - 291
----------------- --------------
Total commission & fees $ 261,452 $ 250,674
================= ==============
(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)
March 31, 2011 December 31, 2010
------------------ ------------------
ASSETS
Current assets:
Cash and cash equivalents $ 265,682 $ 272,984
Restricted cash and investments 115,635 123,594
Short-term investments 7,481 7,678
Premiums, commissions and fees
receivable 232,688 214,446
Deferred income taxes 8,235 20,076
Other current assets 25,242 14,031
------------------ ------------------
Total current assets 654,963 652,809
Fixed assets, net 59,574 59,713
Goodwill 1,225,357 1,194,827
Amortizable intangible assets, net 485,530 481,900
Other assets 18,572 11,565
------------------ ------------------
Total assets $ 2,443,996 $ 2,400,814
================== ==================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Premiums payable to insurance
companies $ 330,745 $ 311,346
Premium deposits and credits due
customers 31,555 28,509
Accounts payable 31,627 33,693
Accrued expenses and other
liabilities 64,709 94,947
Current portion of long-term debt 1,212 1,662
------------------ ------------------
Total current liabilities 459,848 470,157
Long-term debt 250,067 250,067
Deferred income taxes, net 153,160 146,482
Other liabilities 36,509 27,764
Shareholders' equity:
Common stock, par value $0.10 per
share; authorized 280,000 shares;
issued and outstanding 142,548 at
2011 and 142,795 at 2010 14,255 14,279
Additional paid-in capital 290,197 286,997
Retained earnings 1,239,954 1,205,061
Accumulated other comprehensive
income 6 7
------------------ ------------------
Total shareholders' equity 1,544,412 1,506,344
------------------ ------------------
Total liabilities and
shareholders' equity $ 2,443,996 $ 2,400,814
================== ==================
Cory T. Walker Chief Financial Officer (386) 239-7250
SOURCE: Brown & Brown, Inc.