Welcome!

Web 2.0 Authors: Liz McMillan, Carmen Gonzalez, Pat Romanski, Rick Delgado, Elizabeth White

News Feed Item

Brown & Brown, Inc. Announces Record Fourth-Quarter Earnings of $42.6 Million

DAYTONA BEACH, FL and TAMPA, FL -- (Marketwire) -- 02/01/13 -- Brown & Brown, Inc. (NYSE: BRO) today announced its preliminary, unaudited financial results for the fourth quarter of 2012.

Net income for the fourth quarter of 2012 was $42,637,000, or $0.29 per share, compared with $36,494,000, or $0.25 per share for the same quarter of 2011, an increase of 16.8%. Total revenue for the fourth quarter was $302,830,000, compared with 2011 fourth-quarter revenue of $244,097,000, an increase of 24.1%.

Total revenue for the twelve months ended December 31, 2012 was $1,200,032,000, compared with total revenue for the same period of 2011 of $1,013,542,000, an increase of 18.4%. Net income for the twelve-month period ended December 31, 2012 was $184,045,000, or $1.26 per share, compared with $163,995,000, or $1.13 per share for the same period of 2011, an increase of 12.2%.

J. Powell Brown, President and Chief Executive Officer of the Company, noted, "The fourth-quarter results were the culmination of the hard work of our 6,300-plus teammates throughout 2012. Two of our most important goals for 2012 -- to grow our revenues organically and to improve each and every quarter -- were accomplished. I am very proud of what we achieved in the fourth quarter and for the year. We will continue to work tirelessly for the benefit of our clients in 2013."

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' sixth 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 the Company's anticipated financial results for the fourth quarter of 2012. 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. These risks and uncertainties include, but are not limited to, the Company's determination as it finalizes its financial results for the fourth quarter of 2012 that its financial results differ from the current preliminary unaudited numbers set forth herein, other factors that the Company may not have currently identified or quantified, and other risks, relevant factors and uncertainties identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2011, and the Company's other filings with the Securities and Exchange Commission. 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,
                                 -------------------  ---------------------
                                    2012      2011       2012       2011
                                 --------- ---------  ---------- ----------
REVENUES
Commissions and fees             $ 300,296 $ 241,350  $1,189,081 $1,005,962
Investment income                      236       333         797      1,267
Other income, net                    2,298     2,414      10,154      6,313
                                 --------- ---------  ---------- ----------
  Total revenues                   302,830   244,097   1,200,032  1,013,542
                                 --------- ---------  ---------- ----------

EXPENSES
Employee compensation and
 benefits                          158,467   129,389     608,506    508,675
Non-cash stock-based compensation    4,472     2,856      15,865     11,194
Other operating expenses            44,995    34,590     174,389    144,079
Amortization                        16,123    13,965      63,573     54,755
Depreciation                         3,990     3,116      15,373     12,392
Interest                             4,004     3,352      16,097     14,132
Change in estimated acquisition
 earn-out payables                   1,552    (2,862)      1,418     (2,206)
                                 --------- ---------  ---------- ----------
    Total expenses                 233,603   184,406     895,221    743,021
                                 --------- ---------  ---------- ----------

Income before income taxes          69,227    59,691     304,811    270,521

Income taxes                        26,590    23,197     120,766    106,526
                                 --------- ---------  ---------- ----------

Net income                       $  42,637 $  36,494  $  184,045 $  163,995
                                 ========= =========  ========== ==========

Net income per share:
  Basic                          $    0.30 $    0.25  $     1.28 $     1.15
                                 ========= =========  ========== ==========
  Diluted                        $    0.29 $    0.25  $     1.26 $     1.13
                                 ========= =========  ========== ==========

Weighted average number of shares
 outstanding:
  Basic                            139,681   138,796     139,364    138,582
                                 ========= =========  ========== ==========
  Diluted                          142,314   140,547     142,010    140,264
                                 ========= =========  ========== ==========

Dividends declared per share     $   0.090 $  0.0850  $   0.3450 $   0.3250
                                 ========= =========  ========== ==========



                            Brown & Brown, Inc.
                          INTERNAL GROWTH SCHEDULE
                    Core Organic Commissions and Fees(1)
                    Three Months Ended December 31, 2012
                               (in thousands)
                                (unaudited)

                                       Total
           Quarter   Quarter   Total    Net       Less    Internal Internal
            Ended     Ended     Net   Growth  Acquisition    Net      Net
           12/31/12  12/31/11  Change    %      Revenues  Growth $ Growth %
          --------- --------- ------- ------  ----------- -------- --------

Retail(2) $ 153,230 $ 139,257 $13,973   10.0% $     6,166 $  7,807      5.6%

National
 Programs    64,090    41,057  23,033   56.1%      22,957       76      0.2%

Wholesale
 Brokerage   40,299    35,595   4,704   13.2%       1,738    2,966      8.3%

Services     34,398    16,482  17,916  108.7%      16,106    1,810     11.0%
          --------- --------- -------         ----------- --------

Total Core
 Commissions
 and Fees
 (1)      $ 292,017 $ 232,391 $59,626   25.7% $    46,967 $ 12,659      5.4%
          ========= ========= =======         =========== ========



                 Reconciliation of Internal Growth Schedule
                        to Total Commissions and Fees
              Included in the Consolidated Statements of Income
            For the Three Months Ended December 31, 2012 and 2011
                               (in thousands)
                                 (unaudited)

                                                      Quarter      Quarter
                                                       Ended        Ended
                                                      12/31/12     12/31/11
                                                    -----------  -----------
Total core commissions and fees(1)                  $   292,017  $   232,391
Profit-sharing contingent commissions                     6,342        4,810
Guaranteed supplemental commissions                       1,937        2,459
Divested business                                             -        1,690
                                                    -----------  -----------

Total commissions & fees                            $   300,296  $   241,350
                                                    ===========  ===========

(1) Total core commissions and fees are our total commissions and fees less (i) profit-sharing contingent commissions (revenues 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), (ii) guaranteed supplemental commissions (GSC) (revenues derived from special revenue-sharing commissions from insurance companies based solely upon the volume of the business placed with such companies during the current year),and (iii) divested business (commissions and fees generated from offices, books of business or niches sold by the Company or terminated).

(2) The Retail segment includes commissions and fees reported in the "Other" column of the Segment Information, which includes corporate and consolidation items.




                             Brown & Brown, Inc.
                         CONSOLIDATED BALANCE SHEETS
                    (in thousands, except per share data)
                                 (unaudited)

                                               December 31,    December 31,
                                                   2012            2011
                                              --------------  --------------
ASSETS
Current assets:
  Cash and cash equivalents                   $      219,821  $      286,305
  Restricted cash and investments                    164,564         130,535
  Short-term investments                               8,183           7,627
  Premiums, commissions and fees receivable          302,725         240,257
  Deferred income taxes                               24,408          19,863
  Other current assets                                39,811          23,540
                                              --------------  --------------
    Total current assets                             759,512         708,127

Fixed assets, net                                     74,337          61,360
Goodwill                                           1,711,514       1,323,469
Amortizable intangible assets, net                   566,538         496,182
Other assets                                          16,157          17,873
                                              --------------  --------------
    Total assets                              $    3,128,058  $    2,607,011
                                              ==============  ==============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Premiums payable to insurance companies     $      406,704  $      327,096
  Premium deposits and credits due customers          32,867          30,048
  Accounts payable                                    48,524          22,384
  Accrued expenses and other liabilities              79,593         100,865
  Current portion of long-term debt                       93           1,227
                                              --------------  --------------
    Total current liabilities                        567,781         481,620

Long-term debt                                       450,000         250,033

Deferred income taxes, net                           237,630         178,052

Other liabilities                                     65,314          53,343

Shareholders' equity:
  Common stock, par value $0.10 per share;
   authorized 280,000 shares; issued and
   outstanding 143,878 at 2012 and 143,352
   at 2011                                            14,388          14,335
  Additional paid-in capital                         335,872         307,059
  Retained earnings                                1,457,073       1,322,562
  Accumulated other comprehensive income                   -               7
                                              --------------  --------------

    Total shareholders' equity                     1,807,333       1,643,963
                                              --------------  --------------

    Total liabilities and shareholders'
     equity                                   $    3,128,058  $    2,607,011
                                              ==============  ==============

Cory T. Walker
Chief Financial Officer
(386) 239-7250

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories

SUNNYVALE, Calif., Oct. 20, 2014 /PRNewswire/ -- Spansion Inc. (NYSE: CODE), a global leader in embedded systems, today added 96 new products to the Spansion® FM4 Family of flexible microcontrollers (MCUs). Based on the ARM® Cortex®-M4F core, the new MCUs boast a 200 MHz operating frequency and support a diverse set of on-chip peripherals for enhanced human machine interfaces (HMIs) and machine-to-machine (M2M) communications. The rich set of periphera...

WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at Internet of @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, will discuss how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue business and deliver exceptional experiences to their customers.
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
Predicted by Gartner to add $1.9 trillion to the global economy by 2020, the Internet of Everything (IoE) is based on the idea that devices, systems and services will connect in simple, transparent ways, enabling seamless interactions among devices across brands and sectors. As this vision unfolds, it is clear that no single company can accomplish the level of interoperability required to support the horizontal aspects of the IoE. The AllSeen Alliance, announced in December 2013, was formed with the goal to advance IoE adoption and innovation in the connected home, healthcare, education, aut...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Be Among the First 100 to Attend & Receive a Smart Beacon. The Physical Web is an open web project within the Chrome team at Google. Scott Jenson leads a team that is working to leverage the scalability and openness of the web to talk to smart devices. The Physical Web uses bluetooth low energy beacons to broadcast an URL wirelessly using an open protocol. Nearby devices can find all URLs in the room, rank them and let the user pick one from a list. Each device is, in effect, a gateway to a web page. This unlocks entirely new use cases so devices can offer tiny bits of information or simple i...
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, will address the big issues involving these technologies and, more important, the results they will achieve. How important are public, private, and hybrid cloud to the enterprise? How does one define Big Data? And how is the IoT tying all this together?
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
TechCrunch reported that "Berlin-based relayr, maker of the WunderBar, an Internet of Things (IoT) hardware dev kit which resembles a chunky chocolate bar, has closed a $2.3 million seed round, from unnamed U.S. and Switzerland-based investors. The startup had previously raised a €250,000 friend and family round, and had been on track to close a €500,000 seed earlier this year — but received a higher funding offer from a different set of investors, which is the $2.3M round it’s reporting."
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital busines...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The Internet of Things needs an entirely new security model, or does it? Can we save some old and tested controls for the latest emerging and different technology environments? In his session at Internet of @ThingsExpo, Davi Ottenheimer, EMC Senior Director of Trust, will review hands-on lessons with IoT devices and reveal privacy options and a new risk balance you might not expect.
IoT is still a vague buzzword for many people. In his session at Internet of @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, will discuss the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. The presentation will also discuss how IoT is perceived by investors and how venture capitalist access this space. Other topics to discuss are barriers to success, what is new, what is old, and what the future may hold.