DAYTONA BEACH, FL and TAMPA, FL, Oct 18, 2010 (MARKETWIRE via COMTEX) --
Brown & Brown, Inc. (NYSE: BRO) today announced that it earned net income for the third quarter of 2010 of $44,293,000, or $0.31 per share, an increase of 8.1% from the $40,961,000, or $0.29 per share, reported for the quarter ended September 30, 2009. Total revenue for the quarter ended September 30, 2010 was $247,616,000, compared with 2009 third-quarter revenue of $243,766,000.
Total revenue for the nine months ended September 30, 2010 was $743,554,000, compared with total revenue for the first nine months of 2009 of $753,715,000. Net income for the nine-month period ended September 30, 2010 was $129,606,000, or $0.90 per share, compared with $129,641,000, or $0.91 per share for the same period of 2009.
J. Powell Brown, President and Chief Executive Officer of Brown & Brown, Inc., noted, "Our team continues to work against the headwinds of rate declines and exposure unit decreases. The economy continues to present challenges and opportunities for Brown & Brown. Additionally, we are extremely pleased with the new team members that have joined us in the third quarter through strategic acquisitions."
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; 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; and the cost and impact on the Company of previously disclosed regulatory inquiries regarding industry and Company practices with respect to compensation received from insurance carriers. 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 Nine Months Ended September 30 September 30 --------------------------- --------------------------- 2010 2009 2010 2009 ------------- ------------- ------------ ------------- REVENUES Commissions and fees $ 246,102 $ 243,016 $ 737,829 $ 751,575 Investment income 345 175 1,022 945 Other income (loss), net 1,169 575 4,703 1,195 ------------- ------------- ------------ ------------- Total revenues 247,616 243,766 743,554 753,715 ------------- ------------- ------------ ------------- EXPENSES Employee compensation and benefits 122,001 119,607 365,556 369,573 Non-cash stock-based compensation 1,495 1,732 5,230 5,243 Other operating expenses 31,301 35,523 101,256 107,007 Amortization 12,869 12,468 38,072 37,372 Depreciation 3,116 3,323 9,498 9,955 Interest 3,607 3,622 10,847 10,888 Change in estimated acquisition earn-out payables 193 - (1,036) - ------------- ------------- ------------ ------------- Total expenses 174,582 176,275 529,423 540,038 ------------- ------------- ------------ ------------- Income before income taxes 73,034 67,491 214,131 213,677 Income taxes 28,741 26,530 84,525 84,036 ------------- ------------- ------------ ------------- Net income $ 44,293 $ 40,961 $ 129,606 $ 129,641 ============= ============= ============ ============= Net income per share: Basic $ 0.31 $ 0.29 $ 0.91 $ 0.92 ============= ============= ============ ============= Diluted $ 0.31 $ 0.29 $ 0.90 $ 0.91 ============= ============= ============ ============= Weighted average number of shares outstanding: Basic 138,093 137,279 137,802 137,052 ============= ============= ============ ============= Diluted 139,507 137,671 139,128 137,403 ============= ============= ============ ============= Dividends declared per share $ 0.0775 $ 0.0750 $ 0.2325 $ 0.2250 ============= ============= ============ ============= Brown & Brown, Inc. INTERNAL GROWTH SCHEDULE Core Commissions and Fees(1) Three Months Ended September 30, 2010 (in thousands) (unaudited) Total Internal Internal Quarter Quarter Total Net Less Net Net Ended Ended Net Growth Acquisition Growth Growth 9/30/10 9/30/09 Change % Revenues $ % -------- -------- ------ ------ ------- -------- ----- Florida Retail $ 34,035 $ 34,925 $ (890) (2.5)% $ 24 $ (914) (2.6)% National Retail 81,743 80,822 921 1.1 % 5,089 (4,168) (5.2)% Western Retail 25,656 26,128 (472) (1.8)% 1,585 (2,057) (7.9)% -------- -------- ------ ------- -------- Total Retail 141,434 141,875 (441) (0.3)% 6,698 (7,139) (5.0)% -------- -------- ------ ------- -------- Wholesale Brokerage 34,135 34,809 (674) (1.9)% 182 (856) (2.5)% Professional Programs 11,675 12,632 (957) (7.6)% - (957) (7.6)% Special Programs 37,555 34,583 2,972 8.6 % - 2,972 8.6 % -------- -------- ------ ------- -------- Total National Programs 49,230 47,215 2,015 4.3 % - 2,015 4.3 % -------- -------- ------ ------- -------- Services 11,636 8,296 3,340 40.3 % 3,401 (61) (0.7)% -------- -------- ------ ------- -------- Total Core Commissions and Fees (1) $236,435 $232,195 $4,240 1.8 % $10,281 $(6,041) (2.6)% ======== ======== ====== ======= ======== Reconciliation of Internal Growth Schedule to Total Commissions and Fees Included in the Consolidated Statements of Income for the Three Months Ended September 30, 2010 and 2009 (in thousands) (unaudited) Quarter Quarter Ended Ended 9/30/10 9/30/09 ----------- ----------- Total core commissions and fees(1) $ 236,435 $ 232,195 Contingent commissions 9,667 10,421 Divested business - 400 ----------- ----------- Total commission & fees $ 246,102 $ 243,016 =========== =========== (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) September 30, December 31, 2010 2009 ------------ ------------ ASSETS Current assets: Cash and cash equivalents $ 257,151 $ 197,113 Restricted cash and investments 161,318 155,257 Short-term investments 7,669 8,213 Premiums, commissions and fees receivable 224,299 209,462 Deferred income taxes - 11,791 Other current assets 19,284 31,863 ------------ ------------ Total current assets 669,721 613,699 Fixed assets, net 59,721 61,467 Goodwill 1,167,199 1,074,397 Amortizable intangible assets, net 478,985 468,862 Other assets 12,185 5,801 ------------ ------------ Total assets $ 2,387,811 $ 2,224,226 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Premiums payable to insurance companies $ 325,903 $ 310,296 Premium deposits and credits due customers 57,805 37,715 Accounts payable 21,303 17,431 Accrued expenses and other liabilities 87,626 96,387 Current portion of long-term debt 101,689 17,124 ------------ ------------ Total current liabilities 594,326 478,953 Long-term debt 150,067 250,209 Deferred income taxes, net 130,905 115,609 Other liabilities 31,151 9,581 Shareholders' equity: Common stock, par value $0.10 per share; authorized 280,000 shares; issued and outstanding 142,643 at 2010 and 142,076 at 2009 14,264 14,208 Additional paid-in capital 282,765 267,856 Retained earnings 1,184,328 1,087,805 Accumulated other comprehensive income 5 5 ------------ ------------ Total shareholders' equity 1,481,362 1,369,874 ------------ ------------ Total liabilities and shareholders' equity $ 2,387,811 $ 2,224,226 ============ ============
Cory T. Walker Chief Financial Officer (386) 239-7250
SOURCE: Brown & Brown, Inc.