Brown & Brown, Inc. announces quarterly revenues of $927.6

DAYTONA BEACH, Fla., Oct. 24, 2022 (GLOBE NEWSWIRE) — Brown & Brown, Inc. (NYSE:BRO) (the “Company”) in the present day introduced its unaudited monetary outcomes for the third quarter of 2022.

Revenues for the third quarter of 2022 underneath U.S. usually accepted accounting rules (“GAAP”) have been $927.6 million, growing $157.3 million, or 20.4%, in comparison with the third quarter of the prior 12 months, with commissions and costs growing by 20.2% and Organic Revenue growing by 6.7%. Income earlier than revenue taxes was $218.0 million, growing 10.9% from the third quarter of the prior 12 months with Income Before Income Taxes Margin lowering to 23.5% from 25.5% within the third quarter of the prior 12 months. EBITDAC – Adjusted was $289.8 million, growing 5.8% from the third quarter of the prior 12 months with EBITDAC Margin – Adjusted lowering to 31.2% from 35.6% within the third quarter of the prior 12 months. Net revenue was $161.1 million, growing $14.7 million, or 10.0%, and diluted web revenue per share elevated to $0.57, or 9.6%, as in comparison with the third quarter of the prior 12 months. Diluted Net Income Per Share – Adjusted decreased to $0.50, or 13.8%, as in comparison with the third quarter of the prior 12 months.

Revenues for the 9 months ended September 30, 2022 underneath GAAP have been $2,672.0 million, growing $359.1 million, or 15.5%, as in comparison with the identical interval in 2021, with commissions and costs growing by 15.5%, and Organic Revenue growing by 8.3%. Income earlier than revenue taxes was $681.8 million, growing 9.6% from the identical interval in 2021 with Income Before Income Taxes Margin lowering to 25.5% from 26.9% in the identical interval in 2021.  EBITDAC – Adjusted was $887.7 growing 10.9% with EBITDAC Margin – Adjusted lowering to 33.2% from 34.6% in the identical interval in 2021. Net revenue was $526.6 million, growing $41.2 million, or 8.5%, and diluted web revenue per share elevated to $1.85, or 8.2%, every as in comparison with the identical interval in 2021. Diluted Net Income Per Share – Adjusted elevated to $1.79, or 2.3%, as in comparison with the identical interval of 2021.

Our outcomes for the three and 9 months ended September 30, 2022 mirror (1) a unfavourable influence to our profit-sharing contingent commissions of roughly $15 million and (2) losses of roughly $11.5 million related to our capitalized captive insurance services, each regarding the impacts from the estimated insured property losses related to Hurricane Ian.

J. Powell Brown, president and chief govt officer of the Company, famous, “We are pleased with our overall performance for the quarter as we welcomed over 2,500 new teammates from GRP & BdB to Brown & Brown in the United Kingdom, Ireland, Belgium and Italy. We now have approximately 12% of our total revenues delivered from international operations.”

Reconciliation of Commissions and Fees
to Organic Revenue
Three and Nine Months Ended September 30, 2022 and 2021
(in hundreds of thousands, unaudited)

See data concerning non-GAAP measures offered later on this press launch.

Reconciliation of Diluted Net Income Per Share to
Diluted Net Income Per Share – Adjusted
Three and Nine Months Ended September 30, 2022 and 2021
(unaudited)

See data concerning non-GAAP measures offered later on this press launch.

Reconciliation of Total Revenues to Total Revenues – Adjusted, Income Before Income Taxes to
EBITDAC and EBITDAC – Adjusted and Income Before Income Taxes Margin to EBITDAC Margin and EBITDAC Margin – Adjusted
Three and Nine Months Ended September 30, 2022 and 2021
(in hundreds of thousands, unaudited)

See data concerning non-GAAP measures offered later on this press launch.

Brown & Brown, Inc.
Consolidated Statements of Income
(in hundreds of thousands, besides per share information; unaudited)

Brown & Brown, Inc.
Consolidated Balance Sheets
(in hundreds of thousands, besides per share information, unaudited)

Brown & Brown, Inc.
Consolidated Statements of Cash Flows
(in hundreds of thousands, unaudited)

Conference name, webcast and slide presentation

A convention name to debate the outcomes of the third quarter of 2022 shall be held on Tuesday, October 25, 2022 at 8:00 AM (EDT). The Company could seek advice from a slide presentation throughout its convention name. You can entry the webcast and the slides from the “Investor Relations” part of the Company’s web site at bbinsurance.com.

About Brown & Brown

Brown & Brown, Inc. (NYSE: BRO) is a number one insurance brokerage agency, delivering danger administration options to people and companies since 1939. With over 14,500 teammates in 450+ places worldwide, we’re dedicated to offering modern methods to assist shield what our prospects worth most. For extra data or to search out an workplace close to you, please go to bbinsurance.com.

Forward-looking statements

This press launch could comprise sure statements regarding future outcomes that are “forward-looking statements” throughout the which means of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are meant to be lined by the secure harbors created by these legal guidelines. These forward-looking statements embrace details about attainable or assumed future outcomes of our operations. All statements, aside from statements of historic information, included on this press launch that deal with actions, occasions or developments that we anticipate or anticipate could happen sooner or later, together with these regarding the Company’s anticipated monetary outcomes for the third quarter of 2022 and the potential results of the COVID-19 pandemic (“COVID-19”) on the Company’s business, operations, monetary efficiency and prospects, are forward-looking statements. These statements will not be historic information, however as a substitute symbolize solely the Company’s present perception concerning future occasions, many of which, by their nature, are inherently unsure and outdoors of the Company’s management. It is feasible that the Company’s precise outcomes, monetary situation and achievements could differ, probably materially, from the anticipated outcomes, monetary situation and achievements contemplated by these forward-looking statements. Also, once we use phrases equivalent to ‘may’, ‘will’, ‘should’, ‘continue’, ‘anticipate’, ‘imagine’, ‘estimate’, ‘anticipate’, ‘intend’, ‘plan’, ‘most likely’ or related expressions, we’re making forward-looking statements. These dangers and uncertainties embrace, however will not be restricted to, the Company’s willpower because it finalizes its monetary outcomes for the third quarter of 2022 that its monetary outcomes differ from the present preliminary unaudited numbers set forth herein; the longer term impacts of the COVID-19 pandemic and the ensuing governmental and societal responses, together with the direct and oblique influence of COVID-19 on the U.S. economy, the worldwide economy, and the Company’s business, liquidity, prospects, insurance carriers and third events; an prolonged slowdown within the markets wherein we function; the results of inflation; the lack to retain or rent certified workers, in addition to the loss of any of our govt officers or different key workers; acquisition-related dangers that might negatively have an effect on the success of our development technique, together with the likelihood that we could not have the ability to efficiently establish appropriate acquisition candidates, full acquisitions, combine acquired companies into our operations and increase into new markets; a cybersecurity assault or every other interruption in data know-how and/or information safety and/or outsourcing relationships; the requirement for added assets and time to adequately reply to dynamics ensuing from speedy technological change; the loss of or vital change to any of our insurance firm relationships, which may lead to further expense, loss of market share or materials lower in our profit-sharing contingent commissions, assured supplemental commissions or incentive commissions; opposed financial situations, pure disasters, or regulatory adjustments in states the place we’ve a focus of our business; the lack to keep up our tradition or a change in administration, administration philosophy or our business technique; dangers dealing with us in our Services section, together with our third-party claims administration operations, which might be distinct from these we face in our insurance middleman operations; the restrictions of our system of disclosure and inner controls and procedures in stopping errors or fraud, or in informing administration of all materials data in a well timed method; the numerous management sure current shareholders have over the Company; dangers associated to our worldwide operations, which lead to further dangers and require extra administration time and expense than our home operations to attain or keep profitability; adjustments in information privateness and safety legal guidelines and rules or any failure to adjust to such legal guidelines and rules; improper disclosure of confidential data; the potential opposed impact of sure precise or potential claims, regulatory actions or proceedings on our companies, outcomes of operations, monetary situation or liquidity; uncertainty in our business practices and compensation preparations attributable to potential adjustments in rules; regulatory adjustments that might scale back our profitability or development by growing compliance prices, know-how compliance, limiting the services or products we could promote, the markets we could enter, the strategies by which we could promote our services and products, or the costs we could cost for our providers and the shape of compensation we could settle for from our prospects, carriers and third-parties; a lower in demand for legal responsibility insurance because of this of tort reform laws; our failure to adjust to any covenants contained in our debt agreements; the likelihood that covenants in our debt agreements may stop us from partaking in sure probably helpful actions; adjustments within the U.S.-based credit score markets that may adversely have an effect on our business, outcomes of operations and monetary situation; dangers related to the present rate of interest atmosphere, and to the extent we use debt to finance our investments, adjustments in rates of interest will have an effect on our price of capital and web funding revenue; disintermediation throughout the insurance business, together with elevated competitors from insurance firms, know-how firms and the monetary providers business, in addition to the shift away from conventional insurance markets; adjustments in present U.S. or world financial situations; results associated to pandemics, epidemics, or outbreaks of infectious ailments; situations that lead to decreased insurer capability; quarterly and annual variations in our commissions that consequence from the timing of coverage renewals and the online impact of new and misplaced business manufacturing; intangible asset danger, together with the likelihood that our goodwill could turn into impaired sooner or later; the results of acquisitions on our business relationships, working outcomes and business usually; different dangers and uncertainties as could also be detailed on occasion in our public bulletins and Securities and Exchange Commission (“SEC”) filings; and different elements that the Company could not have presently recognized or quantified. All forward-looking statements made herein are made solely as of the date of this launch, and the Company doesn’t undertake any obligation to publicly replace or appropriate any forward-looking statements to mirror occasions or circumstances that subsequently happen or of which the Company hereafter turns into conscious.

Non-GAAP supplemental monetary data

This press launch incorporates references to “non-GAAP financial measures” as outlined in SEC Regulation G, consisting of Total Revenues – Adjusted, Organic Revenue, EBITDAC, EBITDAC Margin, EBITDAC – Adjusted, EBITDAC Margin – Adjusted and Diluted Net Income Per Share – Adjusted. We current these measures as a result of we imagine such data is of curiosity to the funding group and since we imagine it gives further significant strategies to guage the Company’s working efficiency from interval to interval on a foundation that will not be in any other case obvious on a GAAP foundation as a result of influence of sure objects which have a excessive diploma of variability and that we imagine will not be indicative of ongoing efficiency. This non-GAAP monetary data must be thought-about along with, not in lieu of, the Company’s consolidated revenue statements and steadiness sheets as of the related date. Consistent with Regulation G, an outline of such data is offered under and a reconciliation of such objects to GAAP data might be discovered inside this press launch in addition to in our periodic filings with the SEC.

We view Organic Revenue and Organic Revenue development as necessary indicators when assessing and evaluating our efficiency on a consolidated foundation and for every of our 4 segments, as a result of it permits us to find out a comparable, however non-GAAP, measurement of income development that’s related to the income sources that have been a component of our business in each the present and prior 12 months and which might be anticipated to proceed sooner or later. In addition, we imagine Diluted Net Income Per Share – Adjusted gives a significant illustration of our working efficiency and improves the comparability of our outcomes between durations by excluding the influence of the change in estimated acquisition earn-out payables, the influence of overseas forex translation and sure different non-recurring or sometimes occurring objects. We additionally view Total Revenues – Adjusted, EBITDAC, EBITDAC – Adjusted, EBITDAC – Margin and EBITDAC – Margin – Adjusted as necessary indicators when assessing and evaluating our efficiency, as they current extra comparable measurements of our working margins in a significant and constant method. As disclosed in our most up-to-date proxy assertion, we use Organic Revenue, Diluted Net Income Per Share – Adjusted and EBITDAC Margin as key efficiency metrics for our short-term and long-term incentive compensation plans for govt officers and different key workers.

Beginning January 1, 2022, embrace assured supplemental commissions (“GSCs”) as half of core commissions and costs and, subsequently, GSCs are a element of Organic Revenue. All present and prior durations contained inside this press launch have been adjusted for this therapy. GSCs are a secure supply of income which might be extremely correlated to core commissions, so isolating them individually offered no significant incremental worth in evaluating our income.

Beginning January 1, 2022, the next, along with the change in estimated acquisition earn-out payables, are excluded from sure non-GAAP measures, as we imagine these quantities will not be indicative of the continuing working efficiency of the business and will not be simply comparable from period-to-period:

• “(Gain)/loss on disposal,” a caption on our consolidated statements of revenue which displays web proceeds acquired as in comparison with web guide worth associated to gross sales of books of business and different divestiture transactions, such because the disposal of a business by way of sale or closure.
• “Acquisition/Integration Costs,” which symbolize the acquisition and integration prices (e.g., prices related to regulatory filings, authorized/accounting providers, due diligence and the prices of integrating our data know-how methods) arising out of our acquisitions of GRP (Jersey) Holdco Limited and its business, Orchid Underwriters Agency and CrossCover Insurance Services, and BdB Limited firms, which aren’t anticipated to happen on an ongoing foundation sooner or later.
• The period-over-period influence of overseas forex translation (“Foreign Currency Translation”), which is calculated by making use of current-year overseas alternate charges to the varied practical currencies in our business to our reporting forex of US {dollars} for a similar interval within the prior 12 months.

We are presenting EBITDAC – Adjusted, EBITDAC Margin – Adjusted and Diluted Net Income Per Share – Adjusted for the present and prior 12 months durations contained inside this press launch so these non-GAAP monetary measures evaluate each durations on the identical foundation.

Non-GAAP Revenue Measures

• Total Revenues – Adjusted is our complete revenues, excluding the period-over-period influence of Foreign Currency Translation.
• Organic Revenue is our core commissions and costs much less: (i) the core commissions and costs earned for the primary 12 months by newly acquired operations; (ii) divested business (core commissions and costs generated from places of work, books of business or niches bought or terminated through the comparable interval); and (iii) the period-over-period influence of Foreign Currency Translation. The time period “core commissions and fees” excludes profit-sharing contingent commissions and subsequently represents the revenues earned immediately from particular insurance insurance policies bought and particular fee-based providers rendered. Organic Revenue might be expressed as a greenback quantity or a share charge when describing Organic Revenue development.

Non-GAAP Earnings Measures

• EBITDAC is outlined as revenue earlier than curiosity, revenue taxes, depreciation, amortization and the change in estimated acquisition earn-out payables.
• EBITDAC Margin is outlined as EBITDAC divided by complete revenues.
• EBITDAC – Adjusted is outlined as EBITDAC, excluding (i) (acquire)/loss on disposal, (ii) Acquisition/Integration Costs and (iii) the period-over-period influence of Foreign Currency Translation.
• EBITDAC Margin – Adjusted is outlined as EBITDAC – Adjusted divided by Total Revenues – Adjusted.
• Diluted Net Income Per Share – Adjusted is outlined as diluted web revenue per share, excluding the after-tax influence of (i) the change in estimated acquisition earn-out payables, (ii) (acquire)/loss on disposal, (iii) Acquisition/Integration Costs and (iv) the period-over-period influence of Foreign Currency Translation.

Our business friends could present related supplemental non-GAAP data with respect to a number of of these measures, though they could not use the identical or comparable terminology and should not make an identical changes and, subsequently comparability could also be restricted.  This supplemental non-GAAP monetary data must be thought-about along with, and never in lieu of, the Company’s condensed consolidated monetary statements.

For extra data:

R. Andrew Watts
Chief Financial Officer
(386) 239-5770