DAYTONA BEACH, Fla., and TAMPA, Fla., Jan. 17 /PRNewswire-FirstCall/ -- Brown & Brown, Inc. (NYSE: BRO) today announced record earnings for 2001. Net income rose to $53,913,000, or $0.85 per share, up 64.4% from $32,793,000, or $0.53 per share earned in year 2000. At the same time, total revenues were up 37.5% to $365,029,000, versus year 2000 revenues of $265,405,000.
Fourth quarter 2001 net income increased to $15,215,000, or $0.24 per share, compared with net income in fourth quarter 2000 of $5,765,000, or $0.09 per share, a 163.9% increase in net income. Total revenue for the 2001 fourth quarter was $95,877,000, compared with 2000 fourth quarter revenue of $67,383,000, up 42.3%.
Excluding only the restatement impact on prior years' results of the 2001 acquisitions recorded under the pooling-of-interests accounting method, year- end and fourth-quarter net income for 2001 were up 62.5% and 73.2%, respectively, over the comparable net income amounts in 2000, as historically reported. Under the same analysis, revenues for the year and fourth quarter of 2001 were up 74.1% and 79.2%, respectively, over the comparable year 2000 revenue amounts, as historically reported.
"2001 was an exceptional year for Brown & Brown. Nine straight years of record increases in earnings is, in our opinion, a signal accomplishment. The Brown & Brown culture continues to be the fuel that drives our team to constantly and consistently strive to achieve new records; and our systems and methods of doing business are proving their value by driving increased amounts of new business while at the same time achieving higher pre-tax margins. Specifically, for established offices we hit a pre-tax margin of 27.4% in 2001 versus 26.3% in 2000, while our pre-tax margin for all offices in 2001 was 24.8%. In addition, excluding interest expense, amortization, and non-cash stock grant compensation, the operating margin for all offices in 2001 was 31.2%," said Chairman, President and CEO J. Hyatt Brown.
Brown added, "Looking forward to 2002, we will continue to seek opportunities for new merger relationships that will help our external growth, and we will likely see a continuation of increases in insurance premiums and market tightening that should enhance our internal growth."
Brown & Brown, Inc. and its subsidiaries provide a broad range of insurance and reinsurance products and services, as well as risk management, employee benefit administration, and managed health care services through offices located across the United States. The company is ranked by Business Insurance magazine as the nation's eighth largest independent insurance intermediary organization. Our Web address is www.bbinsurance.com.
This press release may contain certain statements relating to future results which are forward-looking statements. These statements are not historical facts, but instead represent only the Company's 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 and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results, 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 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 Arizona, Florida and/or New York, where significant portions of the Company's business are concentrated. All forward-looking statements included in this press release are made only as of the date of this press release, and we do not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which we hereafter become aware.
Brown & Brown, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended Year Ended
December 31 December 31
2001 2000* 2001 2000*
(unaudited)
REVENUES
Commissions and fees $95,127 $65,193 $359,697 $258,309
Investment income 773 1,503 3,686 4,887
Other income (loss) (23) 687 1,646 2,209
Total revenues 95,877 67,383 365,029 265,405
EXPENSES
Employee compensation
and benefits 47,052 41,242 187,653 149,836
Other operating
expenses 15,954 12,088 56,815 44,372
Amortization 4,289 2,332 15,860 9,226
Depreciation 1,319 1,585 6,536 6,158
Interest 878 320 5,703 1,266
Non-cash stock
grant compensation 512 121 1,984 483
Total expenses 70,004 57,688 274,551 211,341
Income before income
taxes and minority
interest 25,873 9,695 90,478 54,064
Income taxes 10,031 3,584 34,834 20,146
Minority interest,
net of tax 627 346 1,731 1,125
Net income $15,215 $ 5,765 $ 53,913 $ 32,793
Net income per share:
Basic $0.24 $0.09 $0.86 $0.53
Diluted $0.24 $0.09 $0.85 $0.53
Weighted average number of shares outstanding:
Basic 63,053 62,361 62,563 61,845
Diluted 63,837 62,849 63,222 62,091
* Restated for pooling-of-interests.
Brown & Brown, Inc.
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
For The Year Ended December 31, 2001
(In thousands, except per share data)
(unaudited)
1st 2nd 3rd 4th Year-To
Quarter Quarter Quarter Quarter Date
REVENUES
Commissions
and fees $87,570 $87,908 $89,092 $95,127 $359,697
Investment
income 1,217 1,092 604 773 3,686
Other income
(loss) 623 933 113 (23) 1,646
Total
revenues 89,410 89,933 89,809 95,877 365,029
EXPENSES
Employee
compensation
and benefits 46,885 46,705 47,011 47,052 187,653
Other
operating
expenses 13,429 14,200 13,232 15,954 56,815
Amortization 3,422 4,164 3,985 4,289 15,860
Depreciation 1,684 1,757 1,776 1,319 6,536
Interest 1,749 1,381 1,695 878 5,703
Non-cash stock
grant
compensation 488 497 487 512 1,984
Total
expenses 67,657 68,704 68,186 70,004 274,551
Income before
income taxes
and minority
interest 21,753 21,229 21,623 25,873 90,478
Income taxes 8,467 8,429 7,907 10,031 34,834
Minority
interest,
net of tax 410 380 314 627 1,731
Net income $12,876 $12,420 $13,402 $15,215 $53,913
Net income
per share:
Basic $0.21 $0.20 $0.21 $0.24 $0.86
Diluted $0.20 $0.20 $0.21 $0.24 $0.85
Weighted average number of shares outstanding:
Basic 62,265 62,348 62,575 63,053 62,563
Diluted 62,839 63,042 63,243 63,837 63,222
* Restated for pooling-of-interests.
Brown & Brown, Inc.
Fourth Quarter Core Commissions and Fees (1)
(In thousands)
(unaudited)
Quarter Quarter Total Total Less Internal
Ended Ended Net Net Acquisition Net
12/31/01 12/31/00 Change Growth % Revenues Growth %
Florida Retail $28,452 $22,095 $6,357 28.8% $ 3,358 13.6%
National Retail 28,174 14,010 14,164 101.1% 13,812 2.5%
Western Retail 15,350 10,847 4,503 41.5% 4,227 2.5%
Total Retail 71,976 46,952 25,024 53.3% 21,397 7.7%
Professional
Programs 3,356 3,334 22 0.7% -- 0.7%
Commercial
Programs 398 485 (87) (17.9%) 21 (22.3%)
Total Programs 3,754 3,819 (65) (1.7%) 21 (2.3%)
Brokerage 9,718 6,472 3,246 50.2% -- 50.2%
TPA Services 6,338 5,570 768 13.8% 264 9.0%
Total Core
Commissions and
Fees $91,786 $62,813 $28,973 46.1% $21,682 11.6%
(1) Total Commissions and Fees excluding profit sharing contingency
revenues and divestitures.
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X72679164
SOURCE Brown & Brown, Inc.
Web site: http: //www.bbinsurance.com
CONTACT: Cory T. Walker, Chief Financial Officer of Brown & Brown, Inc., +1-386-239-7250