Brown & Brown(BRO) - 2024 Q4 - Annual Results

Financial Performance - Total revenues for Q4 2024 were $1.2 billion, an increase of 15.4$210 million, a decrease of 21.9% from Q4 2023, with diluted net income per share decreasing to $0.73[2][4] - For the full year 2024, total revenues reached$4.8 billion, up 12.9% from 2023, with organic revenue growth of 10.4%[3][4] - EBITDAC - Adjusted for Q4 2024 was $390 million, an increase of 22.6$275 million, down 22.8% from the previous year, with a margin decrease to 23.2%[2][11] - Diluted net income per share - Adjusted for Q4 2024 increased to $0.86, a rise of 24.6$1.0 billion, an increase of 14.0% from 2023[3][4] Assets and Liabilities - Total assets increased to $17,612 million in 2024, up from$14,883 million in 2023, representing a growth of 18.4%[16] - Total current assets increased significantly to $6,924 million in 2024, up from$5,130 million in 2023, marking a growth of 35%[16] - Current liabilities also rose to $6,314 million in 2024, compared to$4,956 million in 2023, indicating a 27.4% increase[16] - Retained earnings grew to $6,128 million in 2024, up from$5,289 million in 2023, which is an increase of 15.9%[16] - Cash and cash equivalents, including fiduciary cash, at the end of the period were $2,502 million, up from$2,303 million in 2023, a rise of 8.7%[18] Cash Flow and Investments - Net cash provided by operating activities rose to $1,174 million in 2024, an increase of 16.2$1,010 million in 2023[18] - Payments for businesses acquired in 2024 totaled $890 million, compared to$631 million in 2023, reflecting a 41% increase in acquisition activity[18] - The company reported a net increase in cash and cash equivalents of $199 million in 2024, down from$270 million in 2023[18] Key Performance Metrics - Organic Revenue is a key performance metric that excludes revenues from newly acquired operations, divested businesses, and Foreign Currency Translation, allowing for a clearer assessment of revenue growth[27] - The company will no longer exclude Foreign Currency Translation from EBITDAC - Adjusted, EBITDAC Margin - Adjusted, and Diluted Net Income Per Share - Adjusted starting January 1, 2024, to enhance comparability of financial performance[25] - Amortization of intangible assets will also be excluded from Diluted Net Income Per Share - Adjusted starting January 1, 2024, as it is a non-cash expense not indicative of business performance[26] - EBITDAC is defined as income before interest, income taxes, depreciation, amortization, and changes in estimated acquisition earn-out payables, providing insight into operational efficiency[31] - EBITDAC Margin is calculated as EBITDAC divided by total revenues, serving as an important measure of operating margins[31] - Diluted Net Income Per Share - Adjusted excludes several non-recurring costs, including acquisition/integration costs and amortization, to provide a clearer picture of profitability[31] - Key performance metrics such as Organic Revenue growth, Diluted Net Income Per Share - Adjusted, and EBITDAC Margin - Adjusted are used for executive compensation plans[24] - The adjustments made to non-GAAP measures aim to improve the comparability of financial results across periods[30] - The company emphasizes the importance of EBITDAC and its adjusted measures for evaluating performance in a consistent manner[24] Future Plans - The company plans to discuss its fourth quarter and full year 2024 results in a conference call scheduled for January 28, 2025[19]