Summary
Brown & Brown, Inc. (BRO) reported strong financial performance for the nine months ended September 30, 2013. Total revenues grew by 13.7% to $1,020.1 million, driven primarily by a 14.1% increase in commissions and fees. Net income rose significantly by 20.1% to $169.9 million, with diluted EPS increasing to $1.16 from $0.97 in the prior year period. The company's strategic acquisitions, including the significant Beecher Carlson Holdings, Inc. acquisition in July 2013, contributed substantially to this growth, with a notable increase in goodwill and intangible assets on the balance sheet. The company demonstrated robust internal growth as well, with core organic commissions and fees increasing by 8.2% for the nine-month period, indicating healthy organic expansion across its various divisions. While the company experienced an increase in employee compensation and benefits, it was largely in line with revenue growth and acquisition integration, with efforts to improve operational efficiencies continuing. The balance sheet shows a substantial increase in total assets to $3.55 billion, largely due to goodwill and intangible assets from acquisitions. The company maintains a strong liquidity position and adequate capital resources to fund ongoing operations and future growth initiatives.
Financial Highlights
47 data points| Revenue | $303.80M |
| Operating Expenses | $222.15M |
| Interest Expense | $4.01M |
| Net Income | $49.50M |
| EPS (Basic) | $0.17 |
| EPS (Diluted) | $0.17 |
| Shares Outstanding (Basic) | 278.93M |
| Shares Outstanding (Diluted) | 284.19M |
Key Highlights
- 1Total revenues increased by 13.7% to $1,020.1 million for the nine months ended September 30, 2013.
- 2Net income grew by 20.1% to $169.9 million for the nine months ended September 30, 2013.
- 3Diluted Earnings Per Share (EPS) improved to $1.16 for the nine months ended September 30, 2013, from $0.97 in the prior year.
- 4Acquisitions, notably Beecher Carlson Holdings, Inc., significantly boosted revenues and expanded the company's asset base, particularly goodwill and intangible assets.
- 5Core organic commissions and fees demonstrated strong internal growth, increasing by 8.2% for the nine-month period.
- 6The company maintained compliance with its debt covenants and expressed confidence in its liquidity position to meet obligations through at least the end of 2014.
- 7Employee compensation and benefits increased by 11.9% for the nine months, reflecting both organic growth and integration of acquired businesses.