Brown & Brown, Inc. (NYSE: BRO) today announced its net income
and net income per share for the fourth quarter of 2010.
Net income for the fourth quarter of 2010 was $32,146,000, or
$0.22 per share, compared with $23,653,000, or $0.17 per share for
the same quarter of 2009. Total revenue for the fourth quarter
ended December 31, 2010 was $229,938,000, compared with 2009
fourth-quarter revenue of $214,162,000.
Total revenue for the twelve months ended December 31, 2010 was
$973,492,000, compared with total revenue for the twelve months
ended December 31, 2009 of $967,877,000. Net income for the
twelve-month period ended December 31, 2010 was $161,752,000, or
$1.12 per share, compared with $153,294,000, or $1.08 per share,
for the same period of 2009.
J. Powell Brown, President and Chief Executive Officer of Brown
& Brown, Inc., noted, "2010 was another challenging year and
yet we continued to add value for our clients and grow our
business. We are proud of all of our team members. Our
fourth-quarter and annual results are a testament to the dedication
of our people."
Brown & Brown, Inc., through its subsidiaries offers a broad
range of insurance and reinsurance products and services.
Additionally, certain Brown & Brown subsidiaries offer a
variety of risk management, third party administration, and other
services. Serving business, public entity, individual, trade and
professional association clients nationwide, the Company is ranked
by Business Insurance magazine as the United States' seventh
largest independent insurance intermediary. The Company's Web
address is www.bbinsurance.com.
This press release may contain certain statements relating to
future results which are forward-looking statements, including
those relating to future financial results and to acquisition
opportunities. These statements are not historical facts, but
instead represent only the Company's current 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, financial condition and achievements
may differ, possibly materially, from the anticipated results,
financial condition and achievements contemplated by these
forward-looking statements. Further information concerning the
Company and its business, including factors that potentially could
materially affect the Company's financial results and condition, as
well as its other achievements, 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 effects of
legislative and regulatory changes in Florida pertaining to the
insurance industry, including those relating to coastal property
coverages; 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; the potential
occurrence of a disaster that affects certain areas of the States
of California, Florida, Indiana, Michigan, New Jersey, New York,
Pennsylvania, Texas and/or Washington, where significant portions
of the Company's business are concentrated; and the cost and impact
on the Company of previously disclosed regulatory inquiries
regarding industry and Company practices with respect to
compensation received from insurance carriers. All forward-looking
statements made herein are made only as of the date of this
release, and the Company does not undertake any obligation to
publicly update or correct any forward-looking statements to
reflect events or circumstances that subsequently occur or of which
the Company hereafter becomes aware.
Brown & Brown, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
For the For the
Three Months Ended Twelve Months Ended
December 31 December 31
--------------------- ---------------------
2010 2009 2010 2009
---------- ---------- --------- ----------
REVENUES
Commissions and fees $ 229,088 $ 213,288 $ 966,917 $ 964,863
Investment income 304 216 1,326 1,161
Other income, net 546 658 5,249 1,853
---------- ---------- --------- ----------
Total revenues 229,938 214,162 973,492 967,877
---------- ---------- --------- ----------
EXPENSES
Employee compensation and
benefits 122,264 115,107 487,820 484,680
Non-cash stock-based
compensation 1,615 2,115 6,845 7,358
Other operating expenses 34,595 36,382 135,851 143,389
Amortization 13,370 12,485 51,442 49,857
Depreciation 3,141 3,285 12,639 13,240
Interest 3,624 3,711 14,471 14,599
Change in estimated acquisition
earn-out payables (638) - (1,674) -
---------- ---------- --------- ----------
Total expenses 177,971 173,085 707,394 713,123
---------- ---------- --------- ----------
Income before income taxes 51,967 41,077 266,098 254,754
Income taxes 19,821 17,424 104,346 101,460
---------- ---------- --------- ----------
Net income $ 32,146 $ 23,653 $ 161,752 $ 153,294
========== ========== ========= ==========
Net income per share:
Basic $ 0.23 $ 0.17 $ 1.14 $ 1.08
========== ========== ========= ==========
Diluted $ 0.22 $ 0.17 $ 1.12 $ 1.08
========== ========== ========= ==========
Weighted average number of
shares outstanding:
Basic 138,190 137,531 137,924 137,173
========== ========== ========= ==========
Diluted 139,660 137,779 139,318 137,507
========== ========== ========= ==========
Dividends declared per share $ 0.08 $ 0.0775 $ 0.3125 $ 0.3025
========== ========== ========= ==========
Brown & Brown, Inc.
INTERNAL GROWTH SCHEDULE
Core Commissions and Fees(1)
Three Months Ended December 31, 2010
(in thousands)
(unaudited)
Total Less Internal Internal
Quarter Quarter Total Net Acquisi- Net Net
Ended Ended Net Growth tion Growth Growth
12/31/10 12/31/09 Change % Revenues $ %
-------- -------- ------- ----- ------- ------- -----
Florida Retail $ 37,382 $ 37,014 $ 368 1.0% $ 1,452 $(1,084) (2.9)%
National
Retail 74,589 71,527 3,062 4.3% 5,588 (2,526) (3.5)%
Western Retail 22,375 22,594 (219) (1.0)% 2,131 (2,350) (10.4)%
-------- -------- ------- ------- -------
Total Retail 134,346 131,135 3,211 2.4% 9,171 (5,960) (4.5)%
-------- -------- ------- ------- -------
Professional
Programs 10,842 11,493 (651) (5.7)% - (651) (5.7)%
Special
Programs 30,107 30,417 (310) (1.0)% - (310) (1.0)%
-------- -------- ------- ------- -------
Total National
Programs 40,949 41,910 (961) (2.3)% - (961) (2.3)%
-------- -------- ------- ------- -------
Wholesale
Brokerage 31,433 31,389 44 0.1% 59 (15) 0.0 %
Services 15,975 8,049 7,926 98.5% 7,987 (61) (0.8)%
-------- -------- ------- ------- -------
Total Core
Commissions
and Fees (1) $222,703 $212,483 $10,220 4.8% $17,217 $(6,997) (3.3)%
======== ======== ======= ===== ======= ======= ======
Reconciliation of Internal Growth Schedule
to Total Commissions and Fees
Included in the Consolidated Statements of Income
For the Three Months Ended December 31, 2010 and 2009
(in thousands)
(unaudited)
Quarter Ended Quarter Ended
12/31/10 12/31/09
------------- -------------
Total core commissions and fees(1) $ 222,703 $ 212,483
Contingent commissions 6,385 484
Divested business - 321
------------- -------------
Total commission & fees $ 229,088 $ 213,288
============= =============
(1) Total core commissions and fees are our total commissions and fees
less (i) profit-sharing contingent commissions (revenue derived from
special revenue-sharing commissions from insurance companies based upon
the volume and the growth and/or profitability of the business placed
with such companies during the prior year), and (ii) divested business
(commissions and fees generated from offices, books of business or
niches sold by the Company or terminated).
Brown & Brown, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
December 31, December 31,
2010 2009
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 272,984 $ 197,113
Restricted cash and investments 123,594 155,257
Short-term investments 7,678 8,213
Premiums, commissions and fees receivable 214,446 209,462
Deferred income taxes 20,076 11,791
Other current assets 14,031 31,863
------------- -------------
Total current assets 652,809 613,699
Fixed assets, net 59,713 61,467
Goodwill 1,194,827 1,074,397
Amortizable intangible assets, net 481,900 468,862
Other assets 11,565 5,801
------------- -------------
Total assets $ 2,400,814 $ 2,224,226
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Premiums payable to insurance companies $ 311,346 $ 310,296
Premium deposits and credits due customers 28,509 37,715
Accounts payable 33,693 17,431
Accrued expenses and other liabilities 94,947 96,387
Current portion of long-term debt 1,662 17,124
------------- -------------
Total current liabilities 470,157 478,953
Long-term debt 250,067 250,209
Deferred income taxes, net 146,482 115,609
Other liabilities 27,764 9,581
Shareholders' equity:
Common stock, par value $0.10 per share;
authorized 280,000 shares; issued and
outstanding 142,795 at 2010 and 142,076 at
2009 14,279 14,208
Additional paid-in capital 286,997 267,856
Retained earnings 1,205,061 1,087,805
Accumulated other comprehensive income 7 5
------------- -------------
Total shareholders' equity 1,506,344 1,369,874
------------- -------------
Total liabilities and shareholders' equity $ 2,400,814 $ 2,224,226
============= =============
Cory T. Walker Chief Financial Officer (386) 239-7250
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