Welcome!

Web 2.0 Authors: Tim Hinds, Carmen Gonzalez, Jnan Dash, Elizabeth White, Liz McMillan

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
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise behind this presentation will provide attendees with a leading edge view of rapidly emerging IoT oppor...
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...