Financial Position - Total assets increased to $3,539,040 thousand as of September 30, 2024, compared to $3,501,937 thousand at December 31, 2023, reflecting a growth of approximately 1.06%[10] - Current assets rose to $1,014,281 thousand, up from $925,905 thousand, marking an increase of about 9.5%[10] - Total liabilities increased to $2,502,431 thousand from $2,483,055 thousand, representing a rise of approximately 0.78%[10] - Total stockholders' equity attributable to Baldwin increased to $595,350 thousand from $560,412 thousand, a growth of about 6.2%[10] - The company reported a current portion of contingent earnout liabilities of $201,281 thousand, down from $215,157 thousand, indicating a decrease of approximately 6.4%[10] - The company’s total current liabilities were $1,031,554 thousand, slightly down from $1,033,440 thousand, showing a decrease of about 0.2%[10] - The accumulated deficit as of September 30, 2024, was $(191,261) thousand, compared to $(182,884) thousand at June 30, 2024[13] - The carrying amount of long-term debt was $1,437.9 million as of September 30, 2024, with an estimated fair value of $1,466.4 million[96] Revenue and Income - Total revenues for Q3 2024 reached $338,938 thousand, a 10.6% increase from $306,270 thousand in Q3 2023[12] - Commissions and fees for the nine months ended September 30, 2024, were $1,050,409 thousand, up 13.0% from $929,306 thousand in the same period of 2023[12] - Operating income for Q3 2024 was $15,406 thousand, compared to an operating income of $86 thousand in Q3 2023[12] - Net loss attributable to Baldwin for Q3 2024 was $8,377 thousand, an improvement from a net loss of $17,629 thousand in Q3 2023[12] - Basic and diluted loss per share for Q3 2024 was $(0.13), compared to $(0.29) in Q3 2023[12] - Total revenues for the three months ended September 30, 2024, were $338.9 million, an increase from $306.3 million for the same period in 2023, representing an increase of 10.5%[42] - Commission revenue for the nine months ended September 30, 2024, was $873.1 million, up from $737.8 million in the same period of 2023, reflecting an increase of 18.4%[42] - For the nine months ended September 30, 2024, total revenues were $1,059.145 million, with net income of $(6.242) million[105] Cash Flow and Liquidity - Cash and cash equivalents grew to $181,759 thousand, compared to $116,209 thousand, indicating a significant increase of about 56.4%[10] - Cash provided by operating activities for the nine months ended September 30, 2024, was $85,708,000, up from $22,799,000 in 2023, reflecting enhanced operational efficiency[18] - Net cash provided by investing activities was $25,609,000 for the nine months ended September 30, 2024, compared to a net cash used of $16,948,000 in 2023, indicating a positive shift in investment strategy[18] - The company had cash and cash equivalents of $344,716,000 at the end of the period, up from $194,394,000 at the end of the same period in 2023, demonstrating strong liquidity[20] - Cash paid for interest during the period was $73,417,000, a decrease from $77,455,000 in 2023, suggesting improved debt management[20] Debt and Financing - Long-term debt, less current portion, rose to $1,399,010 thousand from $968,183 thousand, reflecting an increase of about 44.5%[10] - The company has a revolving credit facility with commitments totaling $600 million, maturing on May 24, 2029[7] - The aggregate principal amount of the JPM Credit Agreement was $1.62 billion as of December 31, 2023, consisting of a term loan facility of $1.02 billion and a revolving credit facility of $600 million[52] - On May 24, 2024, the Company refinanced its Term Loan B and Revolving Facility with $600 million in senior secured notes and a new $840 million term loan facility[53] - The outstanding borrowings on the 2024 Term Loan were $837.9 million with an applicable interest rate of 8.10% as of September 30, 2024[60] - The 2024 Term Loan requires quarterly principal payments of $2.1 million, with the balance payable in full on the maturity date[63] - The Company recorded a loss of $15.1 million related to the extinguishment and modification of debt for the nine months ended September 30, 2024[55] Operating Expenses - Total operating expenses for Q3 2024 were $323,532 thousand, a slight increase from $306,184 thousand in Q3 2023[12] - The company reported a depreciation and amortization expense of $80,953,000 for the nine months ended September 30, 2024, compared to $73,755,000 in 2023, showing an increase in asset utilization[18] - The Company incurred $32.0 million in debt issuance costs, with $18.0 million capitalized as deferred financing costs and $14.0 million expensed during the nine months ended September 30, 2024[55] Shareholder Information - The balance of Class A common stock shares increased to 67,536,347 as of September 30, 2024, from 66,544,590 shares at June 30, 2024[13] - The total number of shares authorized for issuance under the Omnibus Plan and the Inducement Plan was 10,793,035 and 3,000,000, respectively, at September 30, 2024[78] - Non-vested awards outstanding at September 30, 2024, increased to 3,720,279 shares from 3,521,590 shares at December 31, 2023, reflecting a growth of approximately 5.7%[80] - Share-based compensation expense for the three months ended September 30, 2024, was $17.9 million, up from $14.6 million in the same period of 2023, representing a year-over-year increase of 22.4%[81] - The total fair value of shares that vested and settled under the Plans was $36.7 million for the nine months ended September 30, 2024, compared to $29.6 million for the same period in 2023, marking a 24% increase[80] Legal and Compliance - The Company is involved in various legal claims, but management believes the ultimate resolution will not materially affect its financial position[98] - Baldwin Holdings was in compliance with all covenants under the 2024 Credit Agreement at September 30, 2024[69] Business Operations - The Insurance Advisory Solutions Operating Group generated revenues of $549.810 million for the nine months ended September 30, 2024, with net income of $55.619 million[105] - The Underwriting, Capacity & Technology Solutions Operating Group reported revenues of $356.176 million and net income of $70.470 million for the same period[105] - The Mainstreet Insurance Solutions Operating Group achieved revenues of $209.422 million with net income of $32.361 million for the nine months ended September 30, 2024[105] - The Company generated commissions and fees from various arrangements, including service fee and consulting arrangements in its Operating Groups[102]

[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) The company demonstrated strong financial performance in Q3 and the first nine months of 2024, marked by significant revenue growth, improved profitability metrics, and a solid liquidity position [Third Quarter 2024 Performance](index=1&type=section&id=Third%20Quarter%202024%20Performance) The Baldwin Group reported strong third-quarter 2024 results, highlighted by an 11% increase in total revenue to $338.9 million and robust 14% organic revenue growth Q3 2024 Financial Highlights (Year-over-Year, in Millions) | Metric | Q3 2024 | Growth vs. Q3 2023 | | :--- | :--- | :--- | | Total Revenue | $338.9 Million | 11% | | Organic Revenue Growth | 14% | - | | GAAP Net Loss | $14.5 Million | - | | GAAP Diluted Loss Per Share | $0.13 | - | | Adjusted Diluted EPS | $0.33 | 14% | | Adjusted EBITDA | $72.8 Million | 14% | | Pro Forma Adjusted EBITDA | $72.8 Million | 18% | | Adjusted EBITDA Margin | 21.5% | 60 bps expansion | - CEO Trevor Baldwin attributed the **strong quarter** to the business model's resiliency and a relentless focus on operational effectiveness and efficiency, positioning the company for **sustained long-term growth and margin expansion**[2](index=2&type=chunk) [Nine Months 2024 Performance](index=2&type=section&id=Nine%20Months%202024%20Performance) For the first nine months of 2024, the company achieved a 13% increase in revenue to $1.1 billion, with organic revenue growing by 16% Nine Months 2024 Financial Highlights (Year-over-Year, in Billions) | Metric | Nine Months 2024 | Growth vs. Nine Months 2023 | | :--- | :--- | :--- | | Total Revenue | $1.1 Billion | 13% | | Organic Revenue Growth | 16% | - | | GAAP Net Loss | $6.2 Million | - | | GAAP Diluted Loss Per Share | $0.07 | - | | Adjusted Diluted EPS | $1.23 | 26% | | Adjusted EBITDA | $249.3 Million | 22% | | Adjusted EBITDA Margin | 23.5% | 160 bps expansion | | Adjusted Free Cash Flow | $99.2 Million | 31% | [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2024, The Baldwin Group maintained a solid liquidity position, holding $181.8 million in cash and cash equivalents and having access to an additional $600.0 million through its revolving credit facility - The company's liquidity as of September 30, 2024, consisted of: - Cash and cash equivalents: **$181.8 million** - Borrowing capacity under revolving credit facility: **$600.0 million**[3](index=3&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements reflect improved revenue and narrowed net losses, stable assets and liabilities, and significantly increased operating cash flows for the nine months ended September 30, 2024 [Condensed Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) For Q3 2024, total revenues increased to $338.9 million while net loss improved to $14.5 million, and for the nine-month period, revenues grew to $1.06 billion with net loss significantly narrowing to $6.2 million, aided by a $39.0 million gain on divestitures Statement of Comprehensive Loss Highlights (in thousands) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $338,938 | $306,270 | $1,059,145 | $933,907 | | Operating Income (Loss) | $15,406 | $86 | $66,122 | $(12,826) | | Net Loss | $(14,475) | $(32,006) | $(6,242) | $(101,523) | | Diluted Loss Per Share | $(0.13) | $(0.29) | $(0.07) | $(0.93) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, The Baldwin Group's balance sheet showed total assets of $3.54 billion, a slight increase from year-end 2023, with total liabilities remaining stable at approximately $2.5 billion and stockholders' equity growing to $1.04 billion Balance Sheet Summary (in thousands) | Account | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $181,759 | $116,209 | | Total Assets | $3,539,040 | $3,501,937 | | Total Liabilities | $2,502,431 | $2,483,055 | | Total Stockholders' Equity | $1,036,234 | $1,018,488 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, net cash provided by operating activities significantly increased to $85.7 million, investing activities generated $25.6 million primarily from divestitures, and financing activities provided $6.4 million, reversing prior year's cash usage Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $85,708 | $22,799 | | Net cash provided by (used in) investing activities | $25,609 | $(16,948) | | Net cash provided by (used in) financing activities | $6,436 | $(41,928) | | Net increase (decrease) in cash | $117,753 | $(36,077) | [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) The company utilizes various non-GAAP financial measures, including Adjusted EBITDA and Organic Revenue Growth, to provide a clearer view of core operational performance through detailed reconciliations from GAAP results [Explanation of Non-GAAP Measures](index=8&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company supplements GAAP results with non-GAAP measures like Adjusted EBITDA and Organic Revenue Growth, which management believes offer a clearer understanding of core operating performance by excluding non-recurring and non-operational items - **Adjusted EBITDA** is defined as net income adjusted for interest, taxes, depreciation, amortization, and other non-recurring or non-operational items to measure **business performance**[23](index=23&type=chunk) - **Organic Revenue Growth** is calculated by excluding commissions and fees from new acquisitions for the first twelve months and from divestitures, allowing for a consistent comparison of **underlying growth**[26](index=26&type=chunk) - **Adjusted Free Cash Flow** is defined as net cash from operations adjusted for changes in certain working capital accounts and contingent earnout payments to measure **cash generation from business operations**[33](index=33&type=chunk) [Reconciliation of Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) Reconciliation from GAAP Net Loss to Adjusted EBITDA shows $72.8 million for Q3 2024 and $249.3 million for the nine-month period, with major adjustments including interest expense, amortization, and share-based compensation Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Period | Net Loss | Adjustments | Adjusted EBITDA | | :--- | :--- | :--- | :--- | | Q3 2024 | $(14,475) | $87,226 | $72,751 | | Q3 2023 | $(32,006) | $96,015 | $64,009 | | Nine Months 2024 | $(6,242) | $255,567 | $249,325 | | Nine Months 2023 | $(101,523) | $306,119 | $204,596 | [Reconciliation of Organic Revenue](index=11&type=section&id=Reconciliation%20of%20Organic%20Revenue) The company's organic revenue, adjusted for acquisitions and divestitures, reached $335.2 million in Q3 2024, growing 14%, and $1.05 billion for the first nine months of 2024, increasing 16% Organic Revenue Growth Calculation (in thousands) | Period | Commissions and Fees | Organic Revenue | Organic Revenue Growth % | | :--- | :--- | :--- | :--- | | Q3 2024 | $335,210 | $335,210 | 14% | | Nine Months 2024 | $1,050,409 | $1,050,409 | 16% | [Reconciliation of Adjusted Net Income and Adjusted Diluted EPS](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20EPS) Adjusted Net Income for Q3 2024 was $38.5 million, leading to an Adjusted Diluted EPS of $0.33, a 14% increase, while for the nine-month period, Adjusted Diluted EPS grew 26% to $1.23 Reconciliation to Adjusted Net Income and Adjusted Diluted EPS (in thousands, except per share data) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Net loss attributable to Baldwin (in thousands) | $(8,377) | $(17,629) | $(4,356) | $(55,658) | | Adjusted net income (in thousands) | $38,528 | $33,756 | $144,783 | $114,933 | | Adjusted diluted EPS | $0.33 | $0.29 | $1.23 | $0.98 | [Reconciliation of Pro Forma Adjusted EBITDA](index=13&type=section&id=Reconciliation%20of%20Pro%20Forma%20Adjusted%20EBITDA) Pro Forma Adjusted EBITDA, excluding 2024 divestitures, was $72.8 million for Q3 2024, an 18% increase, and $247.7 million for the nine-month period, growing 24%, reflecting the ongoing business performance Reconciliation to Pro Forma Adjusted EBITDA (in thousands) | Period | Revenues | Pro Forma Revenue | Net Loss | Pro Forma Adjusted EBITDA | | :--- | :--- | :--- | :--- | :--- | | Q3 2024 | $338,938 | $338,938 | $(14,475) | $72,751 | | Q3 2023 | $306,270 | $296,447 | $(32,006) | $61,658 | | Nine Months 2024 | $1,059,145 | $1,052,885 | $(6,242) | $247,728 | | Nine Months 2023 | $933,907 | $906,777 | $(101,523) | $199,667 | [Reconciliation of Adjusted Free Cash Flow](index=13&type=section&id=Reconciliation%20of%20Adjusted%20Free%20Cash%20Flow) For the nine months ended September 30, 2024, Adjusted Free Cash Flow increased 31% to $99.2 million, derived by adjusting net cash from operating activities for specific working capital and contingent earnout payments Reconciliation to Adjusted Free Cash Flow for Nine Months Ended Sep 30 (in thousands) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $85,708 | $22,799 | | Adjustments | $13,527 | $53,213 | | Adjusted free cash flow | $99,235 | $76,012 | [Other Information](index=2&type=section&id=Other%20Information) This section provides an overview of The Baldwin Group's business, important disclaimers regarding forward-looking statements, and details for accessing the Q3 2024 earnings conference call [About The Baldwin Group](index=2&type=section&id=About%20The%20Baldwin%20Group) The Baldwin Group (NASDAQ: BWIN) is an independent insurance distribution firm providing customized risk management, insurance, and employee benefits solutions to over two million clients globally, driving growth through expertise and capital - The company is an **independent insurance distribution firm** providing **bespoke solutions** for risk management, insurance, and employee benefits[7](index=7&type=chunk) - The Baldwin Group serves **more than two million clients** in the U.S. and internationally[7](index=7&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements based on current management expectations, subject to significant risks and uncertainties that could cause material differences in actual results, with readers advised to consult SEC filings for detailed risk factors - The report contains **forward-looking statements** that are not historical facts and involve **significant risks and uncertainties**[13](index=13&type=chunk) - Investors are directed to the "**Risk Factors**" section of the company's Form 10-K and other SEC filings for more information on **potential risks**[14](index=14&type=chunk) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) The Baldwin Group scheduled a webcast and conference call for November 4, 2024, at 5:00 PM ET to discuss Q3 2024 financial results, with access to the live webcast, presentation, and replay available on its investor relations website - A conference call to discuss **Q3 2024 results** was scheduled for 5:00 PM ET on the day of the release[5](index=5&type=chunk) - A **live webcast, presentation, and replay** are available on Baldwin's investor relations website at ir.baldwin.com[5](index=5&type=chunk)[6](index=6&type=chunk)

Core Insights - BRP Inc. is initiating a sale process for its Marine businesses, which include Alumacraft, Manitou, Telwater (Quintrex, Stacer, Savage, and Yellowfin), and Marine parts, accessories, and apparel, while excluding Sea-Doo products [1] - The decision to focus on Powersports Year-Round Products, Seasonal Products, Parts, Accessories, and Apparel, as well as the OEM Engine business, is driven by a challenging economic context [2] - The CEO of BRP stated that the company aims to strengthen its core Powersports activities and believes that the Marine brands can provide attractive value creation opportunities for a new owner [3] Company Strategy - BRP's objective is to solidify its position as a leading global Powersports OEM, capitalizing on growth opportunities and improving its margin profile for long-term success [3] - The company expects the sale process to be completed in the first quarter of Fiscal Year 2026, with no anticipated impact on its Fiscal Year 2025 guidance [4] - National Bank Financial Inc. has been retained to assist with the sale process [4] Company Overview - BRP Inc. is a global leader in powersports products, propulsion systems, and boats, with annual sales of CA$10.4 billion and a workforce of nearly 20,000 [6] - The company has a diverse portfolio of brands, including Ski-Doo, Lynx, Sea-Doo, Can-Am, Alumacraft, and Manitou, and is committed to developing electric models for its existing product lines [6]

Core Points - Ms. Estelle Métayer has resigned from the Board of Directors of BRP Inc. for personal reasons, effective immediately [1] - Ms. Métayer has been a member of the Board since 2014, contributing significantly to the company's strategic direction and governance [2] - The Board expressed gratitude for her decade-long service and leadership, highlighting her role in guiding the company through pivotal moments [2] Company Overview - BRP Inc. is a global leader in powersports products, propulsion systems, and boats, with over 80 years of experience [3] - The company has annual sales of CA$10.4 billion and operates in over 130 countries, employing nearly 20,000 people [3] - BRP's product portfolio includes well-known brands such as Ski-Doo, Sea-Doo, Can-Am, and Rotax, and the company is committed to developing electric models for its existing product lines [3]

PALM BAY, Fla, Sept. 20, 2024 /PRNewswire/ - BRP Inc. (TSX: DOO) (NASDAQ: DOOO), a global leader in powersports and marine products, is proud to announce the official inauguration of its Design & Innovation Center in Palm Bay, Florida, as part of its on-going expansion in the region. This cutting-edge Center, dedicated to advanced concepts and designs for on-water products, should bring significant innovation to the marine industry. BRP Expands Presence in Palm Bay and Inaugurates New Design & Innovation Ce ...

Anna Richard BRP Inc. (NASDAQ:DOOO) reported the company's Q2 results on the 6th of September, showing even deeper earnings weakness and lowering its FY2025 guidance again with an indicated margin share loss during the quarter. In my previous article on the stock, "Be Cautious Ahead Of Q1 As Weakness Persists," I remained with a Hold rating ahead of the prior Q1 earnings, but suggesting caution as I believed the company's guidance to be too optimistic. Since the article was published on the 21st of May, BRP ...

BRP Inc. (DOOO) came out with quarterly earnings of $0.45 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $2.41 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 104.55%. A quarter ago, it was expected that this company would post earnings of $0.65 per share when it actually produced earnings of $0.70, delivering a surprise of 7.69%. Over the last four quarters, the company has su ...

Highlights Revenues of $1,841.9 million, a decrease of 33.7% compared to last year, reflecting the Company's focus on reducing network inventory levels; Net income of $7.2 million, a decrease of $331.5 million compared to last year; Normalized EBITDA [1] of $198.5 million, a decrease of 58.0% compared to last year; Normalized diluted earnings per share [1][2] of $0.61, a decrease of $2.60 per share, and diluted earnings per share of $0.09, a decrease of $4.17 compared to last year; North American Powersport ...

Wall Street expects a year-over-year decline in earnings on lower revenues when BRP Inc. (DOOO) reports results for the quarter ended July 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on September 6. On th ...

VALCOURT, QC, Aug. 23, 2024 /PRNewswire/ - BRP Inc. (TSX: DOO) (NASDAQ: DOOO) will hold its second quarter FY25 financial results conference call on Friday, September 6, 2024. José Boisjoli, President and Chief Executive Officer, and Sébastien Martel, Chief Financial Officer, will present the results of the second quarter of FY25 and address questions from analysts on a conference call at 9 am (EDT). Second Quarter FY25 Results The press release will be distributed on Canadian and American newswires on Frid ...