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BROWN & BROWN, INC. 8-K Report, Financial Results (Apr 22, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 22, 2024
Period End
April 22, 2024
Security
BRO
In the record · 2016–202610-K1210-Q388-K126

BRO filed 12 annual reports (10-K), 38 quarterly reports (10-Q) and 126 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jun ’17Jun ’17
  2. Leadership change8-K · Feb ’20Feb ’20
  3. Material agreement8-K · Apr ’22Apr ’22
  4. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed April 22, 2024. Cited figures are marked; the original filing is the authoritative source.

Brown & Brown, Inc. (NYSE: BRO) reported first quarter 2024 results on April 22, 2024, with GAAP total revenues of $1,258 milliona, up 12.7% year over year (from $1,116 million), and Organic Revenue growth of 8.6%.

Net income attributable to the company rose 24.2% to $293 millionb, and diluted EPS increased 22.9% to $1.02. Income before income taxes grew 23.8% to $364 million, with pre-tax margin expanding to 28.9% from 26.3%. Management highlighted strong organic growth and margin expansion as the basis for a "very pleased" start to the year.

On non-GAAP measures, EBITDAC - Adjusted rose 17.1% to $466 millionc, with margin up to 37.0% from 35.7%, and Diluted Net Income Per Share - Adjusted increased 18.8% to $1.14. Note that the company changed its non-GAAP definitions effective January 1, 2024: it no longer excludes foreign currency translation from EBITDAC - Adjusted or Adjusted EPS, and it now excludes amortization of intangibles from Adjusted EPS. Prior periods were recast on the same basis, so comparisons are consistent, but investors should be aware the 2024 adjusted figures are not directly comparable to previously published adjusted figures.

Balance sheet and cash flow items warrant attention. Operating cash flow was only $13 milliond in Q1 2024 versus $60 million a year earlier, and total debt rose in the current portion to $875 million (from $569 million), while cash fell to $581 million. Cash used for acquisitions was $76 million, and the company borrowed $150 million on revolving credit facilities, repaying $50 million.

The Board declared a regular quarterly dividend of $0.13 per share, payable May 15, 2024, to holders of record on May 6, 2024. The company will hold an earnings call on April 23, 2024, at 8:00 AM EDT.

02—Key points

Key Highlights

  1. GAAP total revenues of $1,258 million, up 12.7% (+$142 million) year over year; commissions and fees up 11.6%.
  2. Organic Revenue growth of 8.6% ($91 million increase to $1,150 million), a key indicator of underlying growth.
  3. Net income of $293 million, up 24.2%; diluted EPS of $1.02, up 22.9%.
  4. Diluted EPS - Adjusted of $1.14, up 18.8%; EBITDAC - Adjusted of $466 million, up 17.1%, with margin expanding to 37.0% from 35.7%.
  5. Pre-tax margin expanded to 28.9% from 26.3%, indicating operating leverage on revenue growth.
  6. Operating cash flow fell to $13 million from $60 million, and short-term debt rose to $875 million, warranting monitoring.
  7. Quarterly dividend of $0.13 per share declared, payable May 15, 2024; non-GAAP definitions changed effective January 1, 2024.

03—Questions

Frequently Asked Questions

  1. How strong was Brown & Brown's revenue growth in Q1 2024?

    Total GAAP revenues rose 12.7% to $1,258 million. Organic Revenue, which excludes acquisitions, dispositions, and currency effects, grew a more modest 8.6%, indicating that a significant share of growth came from acquisitions.

  2. Did profitability improve?

    Yes. Income before income taxes rose 23.8% to $364 million, and net income increased 24.2% to $293 million. Pre-tax margin expanded to 28.9% from 26.3%, and EBITDAC margin - Adjusted reached 37.0% from 35.7%.

  3. Why might the adjusted earnings figures not be directly comparable to prior reports?

    Effective January 1, 2024, the company stopped excluding foreign currency translation from its adjusted earnings measures and began excluding amortization of intangible assets from Adjusted EPS. Prior periods were recast on this basis, so the 2024 vs. 2023 comparison is consistent, but figures from previously reported periods may differ.

  4. Are there any cash flow or liquidity concerns?

    Operating cash flow dropped to $13 million from $60 million in the prior-year quarter. The company drew $150 million on revolving credit facilities, repaid $50 million, and the current portion of long-term debt increased to $875 million. Cash and equivalents declined to $581 million from $700 million at year-end 2023.

  5. What shareholder returns were announced?

    The Board declared a regular quarterly cash dividend of $0.13 per share, payable May 15, 2024, to shareholders of record on May 6, 2024.

04—Continue

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