News Feed Item

Brown & Brown, Inc. Announces Company Record Fourth-Quarter Earnings of $47.2 Million and 2013 Net Income Growth of 18.0%

DAYTONA BEACH, FL and TAMPA, FL -- (Marketwired) -- 02/03/14 -- Brown & Brown, Inc. (NYSE: BRO) today announced its preliminary, unaudited financial results for the fourth quarter of 2013.

Net income for the fourth quarter of 2013 was $47,225,000, or $0.32 per share, compared with $42,637,000, or $0.29 per share for the same quarter of 2012, an increase of 10.8%. Total revenue for the fourth quarter was $343,165,000, compared with 2012 fourth-quarter revenue of $302,830,000, an increase of 13.3%.

Total revenue for the twelve months ended December 31, 2013 was $1,363,279,000, compared with total revenue for the same period of 2012 of $1,200,032,000, an increase of 13.6%. Net income for the twelve-month period ended December 31, 2013 was $217,112,000, or $1.48 per share, compared with $184,045,000, or $1.26 per share for the same period of 2012, an increase of 18.0%.

J. Powell Brown, President and Chief Executive Officer of the Company, noted, "We are very pleased that we grew our net income 18.0% in 2013. Our Colonial Claims subsidiary, which adjusts flood claims, had core commissions and fees of $1.3 million in the fourth quarter of 2013, but had $7.4 million of core commissions and fees in the fourth quarter of 2012 as a result of the significant flood claims attributable to SuperStorm Sandy. Excluding the impact of Colonial Claims, our core organic commissions and fees in the fourth quarter of 2013 grew by 4.5%. In addition, we continued to improve certain operating profit margins in the fourth quarter."

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 the Company's anticipated financial results for the fourth quarter and full year of 2013. 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 and full year of 2013 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, 2012, 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.
                    (in thousands, except per share data)

                                        For the               For the
                                   Three Months Ended   Twelve Months Ended
                                      December 31,          December 31,
                                 --------------------- ---------------------
                                    2013       2012       2013       2012
                                 ---------- ---------- ---------- ----------
Commissions and fees             $  339,364 $  300,296 $1,355,503 $1,189,081
Investment income                       128        236        638        797
Other income, net                     3,673      2,298      7,138     10,154
                                 ---------- ---------- ---------- ----------
    Total revenues                  343,165    302,830  1,363,279  1,200,032
                                 ---------- ---------- ---------- ----------

Employee compensation and
 benefits                           179,460    158,467    683,000    608,506
Non-cash stock-based
 compensation                         7,699      4,472     22,603     15,865
Other operating expenses             51,839     44,995    195,677    174,389
Amortization                         17,792     16,123     67,932     63,573
Depreciation                          4,589      3,990     17,485     15,373
Interest                              4,324      4,004     16,440     16,097
Change in estimated acquisition
 earn-out payables                    1,020      1,552      2,533      1,418
                                 ---------- ---------- ---------- ----------
    Total expenses                  266,723    233,603  1,005,670    895,221
                                 ---------- ---------- ---------- ----------

Income before income taxes           76,442     69,227    357,609    304,811

Income taxes                         29,217     26,590    140,497    120,766
                                 ---------- ---------- ---------- ----------

Net income                       $   47,225 $   42,637 $  217,112 $  184,045
                                 ========== ========== ========== ==========

Net income per share:
  Basic                          $     0.32 $     0.30 $     1.50 $     1.28
                                 ========== ========== ========== ==========
  Diluted                        $     0.32 $     0.29 $     1.48 $     1.26
                                 ========== ========== ========== ==========

Weighted average number of
 shares outstanding:
  Basic                             141,355    139,681    141,033    139,364
                                 ========== ========== ========== ==========
  Diluted                           143,036    142,314    142,624    142,010
                                 ========== ========== ========== ==========

Dividends declared per share     $    0.100 $    0.090 $   0.3700 $   0.3450
                                 ========== ========== ========== ==========

                            Brown & Brown, Inc.
                          INTERNAL GROWTH SCHEDULE
                    Core Organic Commissions and Fees(1)
                    Three Months Ended December 31, 2013
                               (in thousands)

                                         Total             Internal Internal
              Quarter  Quarter  Total     Net      Less      Net      Net
               Ended    Ended    Net    Growth  Acquisition Growth   Growth
             12/31/13 12/31/12  Change     %     Revenues     $        %
             -------- -------- -------  ------  ---------- -------  -------

Retail(2)    $184,996 $151,041 $33,955    22.5% $   33,625 $   330      0.2%

 Programs      73,528   64,090   9,438    14.7%      3,094   6,344      9.9%

 Brokerage     46,238   40,299   5,939    14.7%          -   5,939     14.7%

Services       28,273   34,398  (6,125)  -17.8%          -  (6,125)   -17.8%
             -------- -------- -------          ---------- -------

Total Core
 and Fees
 (1)         $333,035 $289,828 $43,207    14.9% $   36,719 $ 6,488      2.2%
             ======== ======== =======          ========== =======

                 Reconciliation of Internal Growth Schedule
                        to Total Commissions and Fees
              Included in the Consolidated Statements of Income
            For the Three Months Ended December 31, 2013 and 2012
                               (in thousands)

                                                    Quarter       Quarter
                                                     Ended         Ended
                                                    12/31/13      12/31/12
                                                 ------------- -------------
Total core commissions and fees(1)               $     333,035 $     289,828
Profit-sharing contingent commissions                    4,382         6,342
Guaranteed supplemental commissions                      1,947         1,937
Divested business                                            -         2,189
                                                 ------------- -------------

Total commissions & fees                         $     339,364 $     300,296
                                                 ============= =============

(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

(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)

                                                  December 31,  December 31,
                                                      2013          2012
                                                 ------------- -------------
Current assets:
  Cash and cash equivalents                      $     202,952 $     219,821
  Restricted cash and investments                      250,009       164,564
  Short-term investments                                10,624         8,183
  Premiums, commissions and fees receivable            395,915       302,725
  Deferred income taxes                                 29,276        24,408
  Other current assets                                  39,260        39,811
                                                 ------------- -------------
    Total current assets                               928,036       759,512

Fixed assets, net                                       74,733        74,337
Goodwill                                             2,006,173     1,711,514
Amortizable intangible assets, net                     618,888       566,538
Other assets                                            21,678        16,157
                                                 ------------- -------------
    Total assets                                 $   3,649,508 $   3,128,058
                                                 ============= =============

Current liabilities:
  Premiums payable to insurance companies        $     534,360 $     406,704
  Premium deposits and credits due customers            80,959        32,867
  Accounts payable                                      34,158        48,524
  Accrued expenses and other liabilities               157,400        79,593
  Current portion of long-term debt                    100,000            93
                                                 ------------- -------------
    Total current liabilities                          906,877       567,781

Long-term debt                                         380,000       450,000

Deferred income taxes, net                             291,704       237,630

Other liabilities                                       63,786        65,314

Shareholders' equity:
  Common stock, par value $0.10 per share;
   authorized 280,000 shares; issued and
   outstanding 145,419 at 2013 and 143,878 at
   2012                                                 14,542        14,388
  Additional paid-in capital                           371,960       335,872
  Retained earnings                                  1,620,639     1,457,073
                                                 ------------- -------------
    Total shareholders' equity                       2,007,141     1,807,333
                                                 ------------- -------------

    Total liabilities and shareholders' equity   $   3,649,508 $   3,128,058
                                                 ============= =============

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.

Latest Stories
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, discussed how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technologi...
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
Most of us already know that adopting new cloud applications can boost a business’s productivity by enabling organizations to be more agile and ready to change course in our fast-moving and connected digital world. But the rapid adoption of cloud apps and services also brings with it profound security threats, including visibility and control challenges that aren’t present in traditional on-premises environments. At the same time, the cloud – because of its interconnected, flexible and adaptable...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service. 

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 @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed 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 Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, will discuss the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docke...
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
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...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...