Brown & Brown, Inc. Announces Record Quarterly Net Income

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News Desk 2018
Brown & Brown, Inc. Announces Record Quarterly Net Income of $60.1 Million

DAYTONA BEACH, FL and TAMPA, FL--(Marketwired - Apr 15, 2013) - Brown & Brown, Inc. ( NYSE : BRO ) today announced its preliminary, unaudited financial results for the first quarter of 2013. 

Net income for the first quarter of 2013 was $60,131,000, or $0.41 per share, compared with $49,433,000, or $0.34 per share for the same quarter of 2012, an increase of 21.6%. Total revenue for the first quarter was $335,012,000, compared with 2012 first-quarter revenue of $302,486,000, an increase of 10.8%. 

J. Powell Brown, President and Chief Executive Officer of the Company, noted, "We are pleased to have surpassed a quarterly milestone of $60 million of quarterly net income, and to have achieved a quarterly internal growth rate of our core commissions and fees revenue of 10.2%."

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 first quarter 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 first quarter 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.  
CONSOLIDATED STATEMENTS OF INCOME  
(in thousands, except per share data)  
(unaudited)  
    For the Three Months Ended March 31,  
    2013   2012  
REVENUES              
Commissions and fees   $ 333,793   $ 296,533  
Investment income     186     135  
Other income, net     1,033     5,818  
    Total revenues     335,012     302,486  
               
EXPENSES              
Employee compensation and benefits     159,498     149,596  
Non-cash stock-based compensation     3,850     3,747  
Other operating expenses     46,339     43,400  
Amortization     16,161     15,613  
Depreciation     4,167     3,641  
Interest     3,984     4,087  
Change in estimated acquisition earn-out payables     1,522     (388 )
    Total expenses     235,521     219,696  
               
Income before income taxes     99,491     82,790  
               
Income taxes     39,360     33,357  
               
Net income   $ 60,131   $ 49,433  
               
Net income per share:              
  Basic   $ 0.42   $ 0.34  
  Diluted   $ 0.41   $ 0.34  
               
Weighted average number of shares outstanding:              
  Basic     140,796     139,001  
  Diluted     142,947     141,500  
               
Dividends declared per share   $ 0.090   $ 0.0850  
               
   
Brown & Brown, Inc.  
INTERNAL GROWTH SCHEDULE  
Core Organic Commissions and Fees (1)  
Three Months Ended March 31, 2013  
(in thousands)  
(unaudited)  
   
   
    Quarter Ended 03/31/13   Quarter Ended 03/31/12   Total Net Change   Total Net Growth %     Less Acquisition Revenues   Internal Net Growth $   Internal Net Growth %
                                           
Retail (2)   $ 158,950   $ 149,971   $ 8,979   6.0 %   $ 7,830   $ 1,149   0.8 %
                                           
National Programs     61,706     53,630     8,076   15.1 %     1,483     6,593   12.3 %
                                           
Wholesale Brokerage     43,271     38,366     4,905   12.8 %     1,547     3,358   8.8 %
                                           
Services     42,605     25,762     16,843   65.4 %     657     16,186   62.8 %
                                           
Total Core Commissions and Fees (1)   $ 306,532   $ 267,729   $ 38,803   14.5 %   $ 11,517   $ 27,286   10.2 %
                                           
 
Reconciliation of Internal Growth Schedule
to Total Commissions and Fees
Included in the Consolidated Statements of Income
For the Three Months Ended March 31, 2013 and 2012
(in thousands)
(unaudited)
 
 
    Quarter Ended 03/31/13   Quarter Ended 03/31/12
Total core commissions and fees (1)   $ 306,532   $ 267,729
Profit-sharing contingent commissions     25,039     24,221
Guaranteed supplemental commissions     2,222     2,592
Divested business     -     1,991
             
Total commissions & fees   $ 333,793   $ 296,533
             
(1) Total core commissions and fees are our total commissions and fees less (i) profit-sharing conti
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