DAYTONA BEACH and TAMPA, Fla., July 12 /PRNewswire/ -- Brown & Brown, Inc. (NYSE: BRO) announced net income for the second quarter of 2001 of $12,256,000, or $0.41 per share, an earnings per share increase of 64.0% over the $7,499,000, or $0.25 per share, reported for the quarter ended June 30, 2000. Total revenue for the quarter ended June 30, 2001 was $80,361,000, compared with 2000 second-quarter revenue of $55,816,000, an increase of 44.0%.
Total revenue for the six months ended June 30, 2001 was $160,735,000, compared with first-half 2000 revenue of $114,703,000, up 40.1%. Net income for the first six months of 2001 was $24,733,000 versus net income of $16,494,000, an increase of 50.0%. Net income per share for the six months ended June 30, 2001 was $0.82 verses the $0.56 per share posted during the comparable 2000 period, an increase of 46.4%.
"We are extremely pleased that our quarterly results have produced the thirty-fourth consecutive quarter of 15% or greater net income per share growth for our company. The combination of strong internal growth, increased acquisition activity and the continued efficiencies in our established Brown & Brown offices, all contributed to making the 2001 second quarter one of our best quarters ever. These results have pleasantly exceeded even our high expectations," noted J. Hyatt Brown, Chairman, President and CEO.
Brown & Brown, Inc. provides a broad range of insurance 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 ninth 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, as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, depending on a variety of factors such as general economic conditions around the country, fluctuations in equity and fixed income markets, downward commercial property and casualty premium pressures, the competitive environment, the potential occurrence of a major natural disaster in certain areas of the States of Arizona, Florida and/or New York, where significant portions of the Company's business are concentrated, the actual costs of resolution of contingent liabilities, and those factors relevant to Brown & Brown's integration of acquisitions, including any material adverse changes in the customers of the companies whose operations have been acquired and/or any material adverse changes in the business and financial conditions of Brown & Brown or acquired companies and their respective customers. 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. 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.
Second Quarter Core Commissions and Fees (1)
Quarter Quarter Total Total Less Internal
Ended Ended Net Net Acquisition Net
6/30/01 6/30/00 Change Growth % Revenues Growth %
Florida Retail $26,415 $20,377 $6,038 29.6% $3,345 13.2%
Southwest Retail 9,621 5,948 3,673 61.8% 2,958 12.0%
National Retail 23,314 11,936 11,378 95.3% 10,657 6.0%
Total Retail 59,350 38,261 21,089 55.1% 16,960 10.8%
Professional
Programs 3,217 3,099 118 3.8% -- 3.8%
Commercial
Programs 445 324 121 37.3% 38 25.6%
Total Programs 3,662 3,423 239 7.0% 38 5.9%
Brokerage 6,626 4,521 2,105 46.6% -- 46.6%
TPA Services 6,235 5,671 564 9.9% -- 9.9%
Total Core
Commissions
and Fees $75,873 $51,876 $23,997 46.3% $16,998 13.5%
(1) Total Commission and Fees excluding profit sharing contingency
revenues and divestitures.
BROWN & BROWN, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
for three months for the six months
ended June 30, ended June 30,
(Unaudited) (Unaudited)
2001 2000* 2001 2000*
REVENUES
Commissions and fees $78,609 $54,881 $157,615 $112,195
Investment income 864 776 1,948 1,791
Other income 888 159 1,172 717
Total revenues 80,361 55,816 160,735 114,703
EXPENSES
Employee compensation and
benefits 40,844 30,619 82,272 61,516
Other operating expenses 12,562 9,424 24,541 18,937
Depreciation 1,545 1,334 3,038 2,657
Amortization 4,081 2,141 7,410 4,309
Interest 1,295 200 2,941 424
Total expenses 60,327 43,718 120,202 87,843
Income before income taxes 20,034 12,098 40,533 26,860
Income taxes 7,778 4,599 15,800 10,366
Net income $12,256 $7,499 $24,733 $16,494
Basic and diluted earnings per
share
Basic $0.41 $0.26 $0.83 $0.56
Diluted $0.41 $0.25 $0.82 $0.56
Weighted average number of shares
outstanding
Basic 29,786 29,383 29,766 29,353
Diluted 30,133 29,414 30,090 29,379
* Restated for pooling-of-interests.
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SOURCE Brown & Brown, Inc.
Web site: http: //www.bbinsurance.com
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Desk, 888-776-6555 or 212-782-2840
CONTACT: Cory T. Walker, Chief Financial Officer of Brown & Brown, 904-239-7250
CAPTION: BROLOGO BROWN & BROWN LOGO Brown & Brown, Inc. logo. (PRNewsFoto)[HD] DAYTONA BEACH AND TAMPA, FL USA 10/03/2000