DAYTONA BEACH, Fla., Oct. 23, 2023 (GLOBE NEWSWIRE) -- Brown & Brown, Inc. (:BRO) (the "Company") today announced its unaudited financial results for the third quarter of 2023.
Revenues for the third quarter of 2023 under U.S. generally accepted accounting principles ("GAAP") were $1,067.7 million, increasing $140.1 million, or 15.1%, compared to the third quarter of the prior year, with commissions and fees increasing by 13.4% and Organic Revenue increasing by 9.6%. Income before income taxes was $242.3 million, increasing 11.1% from the third quarter of the prior year with Income Before Income Taxes Margin decreasing to 22.7% from 23.5%. EBITDAC - Adjusted was $370.3 million, increasing 27.0% from the third quarter of the prior year with EBITDAC Margin - Adjusted increasing to 34.7% from 31.2%. Net income was $175.9 million, increasing $14.8 million, or 9.2%, and diluted net income per share increased to $0.62, or 8.8%, with Diluted Net Income Per Share - Adjusted increasing to $0.71, or 42.0%, each as compared to the third quarter of the prior year.
Revenues for the nine months ended September 30, 2023 under GAAP were $3,230.9 million, increasing $558.9 million, or 20.9%, as compared to the same period in 2022, with commissions and fees increasing by 19.7%, and Organic Revenue increasing by 11.1%. Income before income taxes was $791.0 million, increasing 16.0% with Income Before Income Taxes Margin decreasing to 24.5% from 25.5% as compared to the same period in 2022. EBITDAC - Adjusted was $1,127.0 million, which was an increase of 26.7% and EBITDAC Margin - Adjusted increased to 34.9% from 33.2% as compared to the same period in 2022. Net income was $601.8 million, increasing $75.2 million, or 14.3%, with diluted net income per share increasing to $2.11, or 14.1%, and Diluted Net Income Per Share - Adjusted increasing to $2.23, or 25.3%, each as compared to the same period in 2022.
J. Powell Brown, president and chief executive officer of the Company, noted, “We had another outstanding quarter and are winning a substantial amount of net new business that drove Organic Revenue growth of 9.6% for the quarter and over 11% year to date.”
Reconciliation of Commissions and Fees
to Organic Revenue
(in millions, unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Commissions and fees | $ | 1,049.3 | $ | 925.2 | $ | 3,193.2 | $ | 2,668.2 | ||||||||
| Profit-sharing contingent commissions | (27.3 | ) | (7.8 | ) | (87.7 | ) | (58.5 | ) | ||||||||
| Core commissions and fees | $ | 1,022.0 | $ | 917.4 | $ | 3,105.5 | $ | 2,609.7 | ||||||||
| Acquisitions | (22.0 | ) | — | (243.9 | ) | — | ||||||||||
| Dispositions | — | (10.6 | ) | — | (38.2 | ) | ||||||||||
| Foreign Currency Translation | 5.9 | 4.8 | ||||||||||||||
| Organic Revenue | $ | 1,000.0 | $ | 912.7 | $ | 2,861.6 | $ | 2,576.3 | ||||||||
| Organic Revenue growth | $ | 87.3 | $ | 285.3 | ||||||||||||
| Organic Revenue growth % | 9.6 | % | 11.1 | % | ||||||||||||
See information regarding non-GAAP measures presented later in this press release.
Reconciliation of Diluted Net Income Per Share to
Diluted Net Income Per Share - Adjusted
(unaudited)
| Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | |||||||||||||||||||||||||||||
| 2023 | 2022 | $ | % | 2023 | 2022 | $ | % | |||||||||||||||||||||||||
| Diluted net income per share | $ | 0.62 | $ | 0.57 | $ | 0.05 | 8.8 | % | $ | 2.11 | $ | 1.85 | $ | 0.26 | 14.1 | % | ||||||||||||||||
| Change in estimated acquisition earn-out payables | 0.09 | (0.07 | ) | 0.16 | 0.09 | (0.08 | ) | 0.17 | ||||||||||||||||||||||||
| (Gain)/loss on disposal | (0.01 | ) | — | (0.01 | ) | (0.02 | ) | — | (0.02 | ) | ||||||||||||||||||||||
| Acquisition/Integration Costs | 0.01 | — | 0.01 | 0.02 | 0.02 | — | ||||||||||||||||||||||||||
| 1Q23 Nonrecurring Cost | — | — | 0.03 | 0.03 | ||||||||||||||||||||||||||||
| Foreign Currency Translation | — | — | (0.01 | ) | 0.01 | |||||||||||||||||||||||||||
| Diluted Net Income Per Share - Adjusted | $ | 0.71 | $ | 0.50 | $ | 0.21 | 42.0 | % | $ | 2.23 | $ | 1.78 | $ | 0.45 | 25.3 | % | ||||||||||||||||
See information regarding non-GAAP measures presented later in this press release.
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
(in millions, unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Total revenues | $ | 1,067.7 | $ | 927.6 | $ | 3,230.9 | $ | 2,672.0 | ||||||||
| Foreign Currency Translation | 7.0 | 6.4 | ||||||||||||||
| Total Revenues - Adjusted | $ | 1,067.7 | $ | 934.6 | $ | 3,230.9 | $ | 2,678.4 | ||||||||
| Income before income taxes | $ | 242.3 | $ | 218.0 | $ | 791.0 | $ | 681.8 | ||||||||
| Income Before Income Taxes Margin | 22.7 | % | 23.5 | % | 24.5 | % | 25.5 | % | ||||||||
| Amortization | 41.1 | 43.5 | 123.7 | 108.2 | ||||||||||||
| Depreciation | 10.4 | 11.3 | 30.5 | 28.3 | ||||||||||||
| Interest | 47.5 | 41.5 | 142.1 | 95.8 | ||||||||||||
| Change in estimated acquisition earn-out payables | 29.9 | (26.6 | ) | 29.4 | (33.1 | ) | ||||||||||
| EBITDAC | $ | 371.2 | $ | 287.7 | $ | 1,116.7 | $ | 881.0 | ||||||||
| EBITDAC Margin | 34.8 | % | 31.0 | % | 34.6 | % | 33.0 | % | ||||||||
| (Gain)/loss on disposal | (2.8 | ) | — | (8.9 | ) | (0.9 | ) | |||||||||
| Acquisition/Integration Costs | 1.9 | 2.1 | 8.2 | 7.6 | ||||||||||||
| 1Q23 Nonrecurring Cost | — | 11.0 | ||||||||||||||
| Foreign Currency Translation | 1.7 | 1.5 | ||||||||||||||
| EBITDAC - Adjusted | $ | 370.3 | $ | 291.5 | $ | 1,127.0 | $ | 889.2 | ||||||||
| EBITDAC Margin - Adjusted | 34.7 | % | 31.2 | % | 34.9 | % | 33.2 | % | ||||||||
See information regarding non-GAAP measures presented later in this press release.
Brown & Brown, Inc.
Consolidated Statements of Income
(in millions, except per share data; unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| REVENUES | ||||||||||||||||
| Commissions and fees | $ | 1,049.3 | $ | 925.2 | $ | 3,193.2 | $ | 2,668.2 | ||||||||
| Investment income | 16.6 | 1.2 | 33.8 | 1.8 | ||||||||||||
| Other | 1.8 | 1.2 | 3.9 | 2.0 | ||||||||||||
| Total revenues | 1,067.7 | 927.6 | 3,230.9 | 2,672.0 | ||||||||||||
| EXPENSES | ||||||||||||||||
| Employee compensation and benefits | 531.6 | 470.3 | 1,632.9 | 1,341.3 | ||||||||||||
| Other operating expenses | 167.7 | 169.6 | 490.2 | 450.6 | ||||||||||||
| (Gain)/loss on disposal | (2.8 | ) | — | (8.9 | ) | (0.9 | ) | |||||||||
| Amortization | 41.1 | 43.5 | 123.7 | 108.2 | ||||||||||||
| Depreciation | 10.4 | 11.3 | 30.5 | 28.3 | ||||||||||||
| Interest | 47.5 | 41.5 | 142.1 | 95.8 | ||||||||||||
| Change in estimated acquisition earn-out payables | 29.9 | (26.6 | ) | 29.4 | (33.1 | ) | ||||||||||
| Total expenses | 825.4 | 709.6 | 2,439.9 | 1,990.2 | ||||||||||||
| Income before income taxes | 242.3 | 218.0 | 791.0 | 681.8 | ||||||||||||
| Income taxes | 66.4 | 56.9 | 189.2 | 155.2 | ||||||||||||
| Net income | $ | 175.9 | $ | 161.1 | $ | 601.8 | $ | 526.6 | ||||||||
| Net income per share: | ||||||||||||||||
