BRP(US:BRP)2025-05-06 20:55Financial Performance - Total revenues for the three months ended March 31, 2025, were $413.4 million, an increase of 8.6% compared to $380.4 million for the same period in 2024[17] - Net income attributable to Baldwin for the three months ended March 31, 2025, was $13.9 million, a decrease of 35.5% from $21.6 million in the prior year[17] - Operating income increased to $56.0 million for the three months ended March 31, 2025, compared to $34.3 million for the same period in 2024, reflecting a growth of 63.5%[17] - Commissions and fees revenue rose to $410.5 million, up 8.6% from $378.1 million year-over-year[17] - Basic earnings per share for the three months ended March 31, 2025, were $0.21, down from $0.35 in the same period of 2024[17] - The company reported a comprehensive income of $24.9 million for the three months ended March 31, 2025, compared to $39.1 million in the prior year, a decline of 36.4%[17] - Net income for the three months ended March 31, 2025, was $24,898,000, compared to $39,100,000 for the same period in 2024, representing a decrease of approximately 36.3%[23] Assets and Liabilities - Total current assets as of March 31, 2025, were $1,055.8 million, compared to $1,026.5 million at the end of 2024, representing a growth of 2.9%[15] - Total liabilities decreased to $2,500.3 million as of March 31, 2025, from $2,525.9 million at the end of 2024, a reduction of 1.0%[15] - The total stockholders' equity attributable to Baldwin increased to $619.6 million as of March 31, 2025, from $583.2 million at the end of 2024, an increase of 6.2%[15] - The company’s long-term debt, less current portion, increased to $1,495.9 million as of March 31, 2025, compared to $1,398.1 million at the end of 2024, reflecting a rise of 7.0%[15] - Total assets as of March 31, 2025, amounted to $3.55 billion, up from $3.53 billion as of December 31, 2024, showing a slight increase of 0.6%[116] Cash Flow and Expenditures - Cash flows from operating activities resulted in a net cash used of $63,983,000 for the three months ended March 31, 2025, compared to a net cash provided of $3,007,000 in 2024[23] - Total cash and cash equivalents at the end of the period was $299,061,000, down from $234,317,000 at the end of the same period in 2024[23] - Capital expenditures for the three months ended March 31, 2025, were $8,933,000, compared to $8,146,000 in 2024, indicating an increase of approximately 9.7%[23] - Capital expenditures for the three months ended March 31, 2025, totaled $8.9 million, compared to $8.1 million in the same period of 2024, reflecting an increase of 9.8%[116] Revenue Streams - Commission revenue for the three months ended March 31, 2025, was $338.9 million, up from $322.4 million in 2024, with direct bill revenue contributing $208.9 million and agency bill revenue contributing $130.0 million[67] - Profit-sharing revenue increased to $24.3 million in Q1 2025 from $20.7 million in Q1 2024, reflecting improved underwriting results[67] - Assumed premium earned was $4.3 million in Q1 2025, indicating the company's entry into the Captive insurance market[67] - The company recognized $24.9 million in revenue during Q1 2025 related to contract liabilities from December 31, 2024[68] Contingent Liabilities and Fair Value - The company reported a change in fair value of contingent consideration of $8,061,000 for the three months ended March 31, 2025, down from $12,676,000 in 2024, reflecting a decrease of approximately 36.5%[23] - The fair value of contingent earnout liabilities decreased from $145.6 million at the beginning of the period to $48.2 million at the end of the period for the three months ended March 31, 2025[97] - The company recorded a net increase in the estimated fair value of contingent earnout liabilities of $8.1 million for the three months ended March 31, 2025, compared to $12.7 million for the same period in 2024[94] - The maximum estimated exposure to contingent earnout liabilities is assessed to be $102.9 million as of March 31, 2025[94] Interest and Debt Management - The company paid $13,787,000 in interest during the three months ended March 31, 2025, down from $27,857,000 in 2024, reflecting a decrease of approximately 50.5%[25] - The Company’s long-term debt included $933.5 million under the 2025 Term Loans with an interest rate of 7.32% as of March 31, 2025, compared to $835.8 million under the 2024 Term Loans at 7.61%[75] - An increase of 100 basis points on the term SOFR rate would increase the annual interest expense under the 2024 Credit Facility by $9.3 million[225] Miscellaneous - The company has a remaining commitment to donate $3.4 million to the University of South Florida through October 2028[100] - The company completed a partnership with MultiStrat Group on April 1, 2025, involving upfront consideration of $12.8 million in cash and equity, aimed at enhancing reinsurance capabilities[124]