- Fourth Quarter 2023 Total Revenues Grew 16%
Year-Over-Year to $284.6 Million -
- Full Year 2023 Total Revenues Grew 24%
Year-Over-Year to $1.2 Billion -
- Fourth Quarter 2023 Organic Revenue Growth(1)
of 15% -
- Full Year 2023 Organic Revenue Growth of 19%
-
BRP Group, Inc. (“BRP Group” or the “Company”) (NASDAQ: BRP), an
independent insurance distribution firm delivering tailored
insurance solutions to a wide range of personal and commercial
Clients, today announced its results for the fourth quarter and
full year ended December 31, 2023.
FOURTH QUARTER 2023 HIGHLIGHTS
- Total revenues increased 16% year-over-year to $284.6
million
- Organic Revenue Growth of 15% year-over-year
- GAAP net loss of $62.5 million and GAAP diluted loss per share
of $0.56
- Adjusted Net Income(2) of $16.2 million, or $0.14(2) per fully
diluted share
- Adjusted EBITDA(3) grew 16% year-over-year to $45.6
million
- Adjusted EBITDA Margin(3) of 16%
“We capped 2023 with another solid quarter of double-digit
organic growth, leading us to generate full year organic revenue
growth of nearly 20% and further illustrating the power and
underlying health of our platform,” said Trevor Baldwin, Chief
Executive Officer of BRP Group. “Our team continues to develop and
deliver innovative solutions for our Clients, and we made
significant progress in the quarter in terms of our expense
rationalization efforts. As a result, we entered 2024
well-positioned to deliver another year of profitable double-digit
organic growth, while meaningfully accelerating expanding margins
and free cash flow in order to further strengthen our balance
sheet. I’m proud of our entire team’s tireless efforts to execute
for our Clients and setting us up to generate additional long-term
value for our shareholders.”
LIQUIDITY AND CAPITAL RESOURCES
As of December 31, 2023, cash and cash equivalents were $116.2
million and the Company had $259.0 million of borrowing capacity
under its revolving credit facility.
FULL YEAR 2023 HIGHLIGHTS
- Total revenues increased 24% year-over-year to $1.2
billion
- Organic Revenue Growth of 19% year-over-year
- GAAP net loss of $164.0 million and GAAP diluted loss per share
of $1.50
- Adjusted Net Income of $131.1 million, or $1.12 per fully
diluted share
- Adjusted EBITDA grew 27% year-over-year to $250.2 million
- Adjusted EBITDA Margin of 21%
WEBCAST AND CONFERENCE CALL INFORMATION
BRP Group will host a webcast and conference call to discuss
fourth quarter 2023 results today at 5:00 PM ET. A live webcast and
a slide presentation of the conference call will be available on
BRP Group’s investor relations website at
ir.baldwinriskpartners.com. The dial-in number for the conference
call is (877) 451-6152 (toll-free) or (201) 389-0879
(international). Please dial the number 10 minutes prior to the
scheduled start time.
A webcast replay of the call will be available at
ir.baldwinriskpartners.com for one year following the call.
ABOUT BRP GROUP, INC.
BRP Group, Inc. (NASDAQ: BRP) is an independent insurance
distribution firm delivering tailored insurance and risk management
insights and solutions that give our Clients the peace of mind to
pursue their purpose, passion and dreams. We are innovating the
industry by taking a holistic and tailored approach to risk
management, insurance and employee benefits, and support our
Clients, Colleagues, Insurance Company Partners and communities
through the deployment of vanguard resources, technology and
capital to drive our organic and inorganic growth. BRP Group
represents over two million Clients across the United States and
internationally. For more information, please visit
www.baldwinriskpartners.com.
FOOTNOTES
(1)
Organic Revenue for the three and
twelve months ended December 31, 2022 used to calculate Organic
Revenue Growth for the three and twelve months ended December 31,
2023 was $245.8 million and $979.9 million, respectively, which is
adjusted to reflect revenues from Partnerships that have reached
the twelve-month owned mark during the three and twelve months
ended December 31, 2023. Organic Revenue and Organic Revenue Growth
are non-GAAP measures. Reconciliation of Organic Revenue and
Organic Revenue Growth to commissions and fees, the most directly
comparable GAAP financial measure, is set forth in the
reconciliation table accompanying this release.
(2)
Adjusted Net Income and Adjusted
Diluted EPS are non-GAAP measures. Reconciliation of Adjusted Net
Income to net loss attributable to BRP Group and reconciliation of
Adjusted Diluted EPS to diluted loss per share, the most directly
comparable GAAP financial measures, are set forth in the
reconciliation table accompanying this release.
(3)
Adjusted EBITDA and Adjusted
EBITDA Margin are non-GAAP measures. Reconciliation of Adjusted
EBITDA and Adjusted EBITDA Margin to net loss, the most directly
comparable GAAP financial measure, is set forth in the
reconciliation table accompanying this release.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release may contain various “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, which represent BRP Group’s expectations or
beliefs concerning future events. Forward-looking statements are
statements other than historical facts and may include statements
that address future operating, financial or business performance or
BRP Group’s strategies or expectations. In some cases, you can
identify these statements by forward-looking words such as “may,”
“might,” “will,” “should,” “expects,” “plans,” “anticipates,”
“believes,” “estimates,” “predicts,” “projects,” “potential,”
“outlook” or “continue,” or the negative of these terms or other
comparable terminology. Forward-looking statements are based on
management’s current expectations and beliefs and involve
significant risks and uncertainties that could cause actual
results, developments and business decisions to differ materially
from those contemplated by these statements.
Factors that could cause actual results or performance to differ
from the expectations expressed or implied in such forward-looking
statements include, but are not limited to, those described under
the caption “Risk Factors” in BRP Group’s Annual Report on Form
10-K for the year ended December 31, 2023 and in BRP Group’s other
filings with the SEC, which are available free of charge on the
SEC's website at: www.sec.gov, including those risks and other
factors relevant to the business, financial condition and results
of operations of BRP Group. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those indicated.
All forward-looking statements and all subsequent written and oral
forward-looking statements attributable to BRP Group or to persons
acting on behalf of BRP Group are expressly qualified in their
entirety by reference to these risks and uncertainties. You should
not place undue reliance on forward-looking statements.
Forward-looking statements speak only as of the date they are made,
and BRP Group does not undertake any obligation to update them in
light of new information, future developments or otherwise, except
as may be required under applicable law.
BRP GROUP, INC.
Consolidated Statements of
Comprehensive Loss
For the Three Months
Ended December
31,
For the Years
Ended December
31,
(in thousands, except share and per
share data)
2023
2022
2023
2022
Revenues:
Commissions and fees
$
282,522
$
246,044
$
1,211,828
$
980,720
Investment income
2,126
—
6,727
—
Total revenues
284,648
246,044
1,218,555
980,720
Operating expenses:
Commissions, employee compensation and
benefits
234,695
196,927
911,354
719,445
Other operating expenses
49,013
49,284
190,267
173,708
Amortization expense
23,199
21,826
92,704
81,738
Change in fair value of contingent
consideration
6,018
43,116
61,083
32,307
Depreciation expense
1,448
1,311
5,698
4,620
Total operating expenses
314,373
312,464
1,261,106
1,011,818
Operating loss
(29,725
)
(66,420
)
(42,551
)
(31,098
)
Other income (expense):
Interest expense, net
(31,865
)
(25,324
)
(119,465
)
(71,072
)
Other income (expense), net
(525
)
986
(718
)
26,137
Total other expense
(32,390
)
(24,338
)
(120,183
)
(44,935
)
Loss before income taxes
(62,115
)
(90,758
)
(162,734
)
(76,033
)
Income tax expense
381
715
1,285
715
Net loss
(62,496
)
(91,473
)
(164,019
)
(76,748
)
Less: net loss attributable to
noncontrolling interests
(28,013
)
(42,983
)
(73,878
)
(34,976
)
Net loss attributable to BRP Group
$
(34,483
)
$
(48,490
)
$
(90,141
)
$
(41,772
)
Comprehensive loss
$
(62,496
)
$
(91,473
)
$
(164,019
)
$
(76,748
)
Comprehensive loss attributable to
noncontrolling interests
(28,013
)
(42,983
)
(73,878
)
(34,976
)
Comprehensive loss attributable to BRP
Group
(34,483
)
(48,490
)
(90,141
)
(41,772
)
Basic and diluted loss per share
$
(0.56
)
$
(0.84
)
$
(1.50
)
$
(0.74
)
Basic and diluted weighted-average shares
of Class A common stock outstanding
61,153,612
57,997,896
60,134,776
56,825,348
BRP GROUP, INC.
Consolidated Balance
Sheets
December 31,
(in thousands, except share and per
share data)
2023
2022
Assets
Current assets:
Cash and cash equivalents
$
116,209
$
118,090
Restricted cash
104,824
112,381
Premiums, commissions and fees receivable,
net
627,791
531,992
Prepaid expenses and other current
assets
12,730
9,936
Assets held for sale
64,351
—
Total current assets
925,905
772,399
Property and equipment, net
22,713
25,405
Right-of-use assets
85,473
96,465
Other assets
38,134
45,935
Intangible assets, net
1,017,343
1,099,918
Goodwill
1,412,369
1,422,060
Total assets
$
3,501,937
$
3,462,182
Liabilities, Mezzanine Equity
and Stockholders’ Equity
Current liabilities:
Premiums payable to insurance
companies
$
555,569
$
471,294
Producer commissions payable
64,304
53,927
Accrued expenses and other current
liabilities
152,954
125,743
Related party notes payable
1,525
1,525
Current portion of contingent earnout
liabilities
215,157
46,717
Liabilities held for sale
43,931
—
Total current liabilities
1,033,440
699,206
Revolving line of credit
341,000
505,000
Long-term debt, less current portion
968,183
809,862
Contingent earnout liabilities, less
current portion
61,310
220,219
Operating lease liabilities, less current
portion
78,999
87,692
Other liabilities
123
164
Total liabilities
2,483,055
2,322,143
Commitments and contingencies
Mezzanine equity:
Redeemable noncontrolling interest
394
487
Stockholders’ equity:
Class A common stock, par value $0.01 per
share, 300,000,000 shares authorized; 64,133,950 and 61,447,368
shares issued and outstanding at December 31, 2023 and 2022,
respectively
641
614
Class B common stock, par value $0.0001
per share, 100,000,000 shares authorized; 52,422,494 and 54,504,918
shares issued and outstanding at December 31, 2023 and 2022,
respectively
5
5
Additional paid-in capital
746,671
704,291
Accumulated deficit
(186,905
)
(96,764
)
Stockholder notes receivable
—
(42
)
Total stockholders’ equity attributable to
BRP Group
560,412
608,104
Noncontrolling interest
458,076
531,448
Total stockholders’ equity
1,018,488
1,139,552
Total liabilities, mezzanine equity and
stockholders’ equity
$
3,501,937
$
3,462,182
BRP GROUP, INC.
Consolidated Statements of
Cash Flows
For the Years Ended December
31,
(in thousands)
2023
2022
Cash flows from operating activities:
Net loss
$
(164,019
)
$
(76,748
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
98,402
86,358
Change in fair value of contingent
consideration
61,083
32,307
Share-based compensation expense
60,008
47,389
Payment of contingent earnout
consideration in excess of purchase price accrual
(24,326
)
(49,926
)
Amortization of deferred financing
costs
5,129
5,120
(Gain) loss on interest rate caps
1,670
(26,220
)
Other loss
361
135
Changes in operating assets and
liabilities, net of effect of acquisitions:
Premiums, commissions and fees receivable,
net
(132,269
)
(183,006
)
Prepaid expenses and other current
assets
(6,849
)
(10,383
)
Right-of-use assets
17,963
(13,492
)
Accounts payable, accrued expenses and
other current liabilities
140,675
173,362
Operating lease liabilities
(13,184
)
16,531
Other liabilities
—
(3,889
)
Net cash provided by (used in) operating
activities
44,644
(2,462
)
Cash flows from investing activities:
Capital expenditures
(21,376
)
(21,979
)
Proceeds from the sale of assets
3,259
—
Cash consideration paid for asset
acquisitions
(2,118
)
(3,356
)
Investments in and loans to business
ventures
(1,687
)
(1,103
)
Cash consideration paid for business
combinations, net of cash received
—
(387,919
)
Net cash used in investing activities
(21,922
)
(414,357
)
Cash flows from financing activities:
Payment of contingent earnout
consideration up to amount of purchase price accrual
(27,949
)
(48,309
)
Proceeds from revolving line of credit
111,000
512,000
Payments on revolving line of credit
(275,000
)
(42,000
)
Proceeds from long-term debt
170,000
—
Payments on long-term debt
(9,376
)
(8,509
)
Payments of debt issuance costs
(4,998
)
(1,821
)
Proceeds from the sale and settlement of
interest rate caps
10,918
21,246
Purchase of interest rate caps
—
(3,838
)
Tax distributions to BRP's LLC Members
(482
)
(9,393
)
Proceeds from repayment of stockholder
notes receivable
42
177
Distributions to variable interest
entities
(385
)
—
Net cash provided by (used in) financing
activities
(26,230
)
419,553
Net increase (decrease) in cash and cash
equivalents and restricted cash
(3,508
)
2,734
Cash and cash equivalents and restricted
cash at beginning of year
230,471
227,737
Cash and cash equivalents and restricted
cash at end of year
$
226,963
$
230,471
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA, Adjusted EBITDA Margin, Organic Revenue,
Organic Revenue Growth, Adjusted Net Income, Adjusted Diluted
Earnings Per Share (“EPS”) and adjusted net cash provided by
operating activities (“free cash flow”) are not measures of
financial performance under GAAP and should not be considered
substitutes for GAAP measures, including commissions and fees (for
Organic Revenue and Organic Revenue Growth), net income (loss) (for
Adjusted EBITDA and Adjusted EBITDA Margin), net income (loss)
attributable to BRP Group (for Adjusted Net Income), diluted
earnings (loss) per share (for Adjusted Diluted EPS) or net cash
provided by (used in) operating activities (for free cash flow),
which we consider to be the most directly comparable GAAP measures.
These non-GAAP financial measures have limitations as analytical
tools, and when assessing our operating performance, you should not
consider these non-GAAP financial measures in isolation or as
substitutes for commissions and fees, net income (loss), net income
(loss) attributable to BRP Group, diluted earnings (loss) per
share, net cash provided by (used in) operating activities or other
consolidated income statement data prepared in accordance with
GAAP. Other companies in our industry may define or calculate these
non-GAAP financial measures differently than we do, and
accordingly, these measures may not be comparable to similarly
titled measures used by other companies.
We define Adjusted EBITDA as net income (loss) before interest,
taxes, depreciation, amortization, change in fair value of
contingent consideration and certain items of income and expense,
including share-based compensation expense, transaction-related
Partnership and integration expenses, severance, and certain
non-recurring items, including those related to raising capital. We
believe that Adjusted EBITDA is an appropriate measure of operating
performance because it eliminates the impact of income and expenses
that do not relate to business performance, and that the
presentation of this measure enhances an investor’s understanding
of our financial performance.
Adjusted EBITDA Margin is Adjusted EBITDA divided by total
revenues. Adjusted EBITDA Margin is a key metric used by management
and our board of directors to assess our financial performance. We
believe that Adjusted EBITDA Margin is an appropriate measure of
operating performance because it eliminates the impact of income
and expenses that do not relate to business performance, and that
the presentation of this measure enhances an investor’s
understanding of our financial performance. We believe that
Adjusted EBITDA Margin is helpful in measuring profitability of
operations on a consolidated level.
Adjusted EBITDA and Adjusted EBITDA Margin have important
limitations as analytical tools. For example, Adjusted EBITDA and
Adjusted EBITDA Margin:
- do not reflect any cash capital expenditure requirements for
the assets being depreciated and amortized that may have to be
replaced in the future;
- do not reflect changes in, or cash requirements for, our
working capital needs;
- do not reflect the impact of certain cash charges resulting
from matters we consider not to be indicative of our ongoing
operations;
- do not reflect the interest expense or the cash requirements
necessary to service interest or principal payments on our
debt;
- do not reflect share-based compensation expense and other
non-cash charges; and
- exclude certain tax payments that may represent a reduction in
cash available to us.
We calculate Organic Revenue based on commissions and fees for
the relevant period by excluding the first twelve months of
commissions and fees generated from new Partners. Organic Revenue
Growth is the change in Organic Revenue period-to-period, with
prior period results adjusted to include commissions and fees that
were excluded from Organic Revenue in the prior period because the
relevant Partners had not yet reached the twelve-month owned mark,
but which have reached the twelve-month owned mark in the current
period. For example, revenues from a Partner acquired on June 1,
2022 are excluded from Organic Revenue for 2022. However, after
June 1, 2023, results from June 1, 2022 to December 31, 2022 for
such Partners are compared to results from June 1, 2023 to December
31, 2023 for purposes of calculating Organic Revenue Growth in
2023. Organic Revenue Growth is a key metric used by management and
our board of directors to assess our financial performance. We
believe that Organic Revenue and Organic Revenue Growth are
appropriate measures of operating performance as they allow
investors to measure, analyze and compare growth in a meaningful
and consistent manner.
We define Adjusted Net Income as net income (loss) attributable
to BRP Group adjusted for depreciation, amortization, change in
fair value of contingent consideration and certain items of income
and expense, including share-based compensation expense,
transaction-related Partnership and integration expenses,
severance, and certain non-recurring costs that, in the opinion of
management, significantly affect the period-over-period assessment
of operating results, and the related tax effect of those
adjustments. We believe that Adjusted Net Income is an appropriate
measure of operating performance because it eliminates the impact
of income and expenses that do not relate to business
performance.
Adjusted Diluted EPS measures our per share earnings excluding
certain expenses as discussed above and assuming all shares of
Class B common stock were exchanged for Class A common stock on a
one-for-one basis. Adjusted Diluted EPS is calculated as Adjusted
Net Income divided by adjusted diluted weighted-average shares
outstanding. We believe Adjusted Diluted EPS is useful to investors
because it enables them to better evaluate per share operating
performance across reporting periods.
We calculate free cash flow because we hold fiduciary cash
designated for our Insurance Company Partners on behalf of our
Clients and incur substantial earnout liabilities in conjunction
with our Partnership strategy. Free cash flow is calculated as net
cash provided by (used in) operating activities excluding the
impact of: (i) the change in premiums, commissions and fees
receivable, net; (ii) the change in accounts payable, accrued
expenses and other current liabilities; and (iii) the payment of
contingent earnout consideration in excess of purchase price
accrual. We believe that free cash flow is an important financial
measure for use in evaluating financial performance because it
measures our ability to generate additional cash from our business
operations.
Reconciliation of guidance regarding Adjusted EBITDA, Organic
Revenue Growth, Adjusted Diluted EPS and free cash flow to the most
directly comparable GAAP measures is not available without
unreasonable efforts on a forward-looking basis due to the high
variability, complexity, and low visibility with respect to
commissions and fees, net income (loss), diluted earnings (loss)
per share or other consolidated income statement data prepared in
accordance with GAAP. The Company is currently unable to predict
with a reasonable degree of certainty the type and extent of items
that would be expected to impact these GAAP financial measures for
these periods. The unavailable information could have a significant
impact on the non-GAAP measures.
Adjusted EBITDA and Adjusted EBITDA Margin
The following table reconciles Adjusted EBITDA and Adjusted
EBITDA Margin to net loss, which we consider to be the most
directly comparable GAAP financial measure:
For the Three Months
Ended December
31,
For the Years
Ended December
31,
(in thousands, except
percentages)
2023
2022
2023
2022
Revenues
$
284,648
$
246,044
$
1,218,555
$
980,720
Net loss
$
(62,496
)
$
(91,473
)
$
(164,019
)
$
(76,748
)
Adjustments to net loss:
Interest expense, net
31,865
25,324
119,465
71,072
Amortization expense
23,199
21,826
92,704
81,738
Change in fair value of contingent
consideration
6,018
43,116
61,083
32,307
Share-based compensation
9,585
21,324
56,222
47,389
Transaction-related Partnership and
integration expenses
10,741
5,036
28,748
34,588
Severance
15,141
120
18,514
1,255
Depreciation expense
1,448
1,311
5,698
4,620
(Gain) loss on interest rate caps
1,181
(800
)
1,670
(26,220
)
Income tax provision
381
715
1,285
715
Other(1)
8,545
12,691
28,834
25,774
Adjusted EBITDA
$
45,608
$
39,190
$
250,204
$
196,490
Adjusted EBITDA Margin
16
%
16
%
21
%
20
%
__________
(1)
Other addbacks to Adjusted EBITDA
include certain income and expenses that are considered to be
non-recurring or non-operational, including certain recruiting
costs, professional fees, litigation costs and bonuses. In 2022,
these addbacks also included certain expenses related to
remediation efforts.
Organic Revenue and Organic Revenue Growth
The following table reconciles Organic Revenue and Organic
Revenue Growth to commissions and fees, which we consider to be the
most directly comparable GAAP financial measure:
For the Three Months
Ended December
31,
For the Years
Ended December
31,
(in thousands, except
percentages)
2023
2022
2023
2022
Commissions and fees
$
282,522
$
246,044
$
1,211,828
$
980,720
Partnership commissions and fees(1)
—
(46,059
)
(44,696
)
(280,660
)
Organic Revenue
$
282,522
$
199,985
$
1,167,132
$
700,060
Organic Revenue Growth(2)
$
36,742
$
40,785
$
187,213
$
132,610
Organic Revenue Growth %(2)
15
%
26
%
19
%
23
%
__________
(1)
Includes the first twelve months
of such commissions and fees generated from newly acquired
Partners.
(2)
Organic Revenue for the three and
twelve months ended December 31, 2022 used to calculate Organic
Revenue Growth for the three and twelve months ended December 31,
2023 was $245.8 million and $979.9 million, respectively, which is
adjusted to reflect revenues from Partnerships that reached the
twelve-month owned mark during the three and twelve months ended
December 31, 2023.
Adjusted Net Income and Adjusted Diluted EPS
The following table reconciles Adjusted Net Income to net loss
attributable to BRP Group and reconciles Adjusted Diluted EPS to
diluted loss per share, which we consider to be the most directly
comparable GAAP financial measures:
For the Three Months
Ended December
31,
For the Years
Ended December
31,
(in thousands, except per share
data)
2023
2022
2023
2022
Net loss attributable to BRP Group
$
(34,483
)
$
(48,490
)
$
(90,141
)
$
(41,772
)
Net loss attributable to noncontrolling
interests
(28,013
)
(42,983
)
(73,878
)
(34,976
)
Amortization expense
23,199
21,826
92,704
81,738
Change in fair value of contingent
consideration
6,018
43,116
61,083
32,307
Share-based compensation
9,585
21,324
56,222
47,389
Transaction-related Partnership and
integration expenses
10,741
5,036
28,748
34,588
Severance
15,141
120
18,514
1,255
(Gain) loss on interest rate caps, net of
cash settlements
4,206
859
12,588
(24,012
)
Depreciation
1,448
1,311
5,698
4,620
Amortization of deferred financing
costs
1,552
1,226
5,129
5,120
Other(1)
8,545
12,691
28,834
25,774
Adjusted pre-tax income
17,939
16,036
145,501
132,031
Adjusted income taxes(2)
1,776
1,587
14,405
13,071
Adjusted Net Income
$
16,163
$
14,449
$
131,096
$
118,960
Weighted-average shares of Class A common
stock outstanding - diluted
61,154
57,998
60,135
56,825
Dilutive effect of unvested stock
awards
3,709
3,706
3,874
3,526
Exchange of Class B common stock(3)
52,434
54,579
53,132
55,450
Adjusted diluted weighted-average shares
outstanding
117,297
116,283
117,141
115,801
Adjusted Diluted EPS
$
0.14
$
0.12
$
1.12
$
1.03
Diluted loss per share
$
(0.56
)
$
(0.84
)
$
(1.50
)
$
(0.74
)
Effect of exchange of Class B common stock
and net loss attributable to noncontrolling interests per share
0.03
0.05
0.10
0.08
Other adjustments to loss per share
0.69
0.92
2.64
1.80
Adjusted income taxes per share
(0.02
)
(0.01
)
(0.12
)
(0.11
)
Adjusted Diluted EPS
$
0.14
$
0.12
$
1.12
$
1.03
___________
(1)
Other addbacks to Adjusted Net
Income include certain income and expenses that are considered to
be non-recurring or non-operational, including certain recruiting
costs, professional fees, litigation costs and bonuses. In 2022,
these addbacks also included certain expenses related to
remediation efforts.
(2)
Represents corporate income taxes
at assumed effective tax rate of 9.9% applied to adjusted pre-tax
income.
(3)
Assumes the full exchange of
Class B common stock for Class A common stock pursuant to the
Amended LLC Agreement.
Adjusted Net Cash Provided by Operating Activities (“Free
Cash Flow”)
The following table reconciles free cash flow to net cash
provided by (used in) operating activities, which we consider to be
the most directly comparable GAAP financial measure:
For the Years
Ended December
31,
(in thousands)
2023
2022
Net cash provided by (used in) operating
activities
$
44,644
$
(2,462
)
Adjustments to net cash provided by (used
in) operating activities:
Change in premiums, commissions and fees
receivable, net
132,269
183,006
Change in accounts payable, accrued
expenses and other current liabilities
(140,675
)
(173,362
)
Payment of contingent earnout
consideration in excess of purchase price accrual
24,326
49,926
Free cash flow
$
60,564
$
57,108
COMMONLY USED DEFINED TERMS
The following terms have the following meanings throughout this
press release unless the context indicates or requires
otherwise:
Amended LLC Agreement
Third Amended and Restated
Limited Liability Company Agreement of Baldwin Risk Partners, LLC,
as amended
Clients
Our insureds
Colleagues
Our employees
GAAP
Accounting principles generally
accepted in the United States of America
Insurance Company Partners
Insurance companies with which we
have a contractual relationship
Partners
Companies that we have acquired,
or in the case of asset acquisitions, the producers
Partnerships
Strategic acquisitions made by
the Company
SEC
U.S. Securities and Exchange
Commission
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240228050048/en/
INVESTOR RELATIONS
Bonnie Bishop, Executive Director, Investor Relations Baldwin
Risk Partners (813) 259-8032 | IR@baldwinriskpartners.com
PRESS
Anna R. Rozenich, Senior Director - Enterprise Communications
Baldwin Risk Partners (630) 561-5907 |
anna.rozenich@baldwinriskpartners.com
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