Welcome!

Agile Computing Authors: Yeshim Deniz, Liz McMillan, Elizabeth White, Roger Strukhoff, ManageEngine IT Matters

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
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
SYS-CON Events announced today that Sheng Liang to Keynote at SYS-CON's 19th Cloud Expo, which will take place on November 1-3, 2016 at the Santa Clara Convention Center in Santa Clara, California.
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your ...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.