BRP Group, Inc.(US:BWIN)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 35.4% from $21.6 million in the same period of 2024[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] - Operating income for the three months ended March 31, 2025, was $56.0 million, up from $34.3 million in the same period of 2024, representing a growth of 63.5%[17] - Net income for the three months ended March 31, 2025, was $24,898,000, a decrease of 36.3% compared to $39,100,000 for the same period in 2024[23] - Total revenues for the three months ended March 31, 2025, were $413.4 million, an increase from $380.4 million in the same period of 2024, representing a growth of 8.7%[116] - Commission revenue for the three months ended March 31, 2025, was $338.9 million, compared to $322.4 million in the same period of 2024, reflecting an increase of 5.1%[116] - Net income for the three months ended March 31, 2025, was $24.9 million, a decrease from $39.1 million in the same period of 2024, indicating a decline of 36.4%[116] Assets and Liabilities - Total current assets increased to $1,055.8 million as of March 31, 2025, compared to $1,026.5 million at December 31, 2024[15] - Total liabilities decreased to $2,500.3 million as of March 31, 2025, from $2,525.9 million at December 31, 2024[15] - Total stockholders' equity attributable to Baldwin increased to $619.6 million as of March 31, 2025, from $583.2 million at December 31, 2024[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 December 31, 2024[15] - Cash and cash equivalents decreased to $90.0 million as of December 31, 2024, from $148.1 million previously reported[43] - As of March 31, 2025, total assets amounted to $3.55 billion, up from $3.53 billion as of December 31, 2024[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] - Capital expenditures for the three months ended March 31, 2025, were $8,933,000, compared to $8,146,000 in the same period of 2024[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[116] Revenue and Income Sources - Commission revenue for the three months ended March 31, 2025, was $338.9 million, up from $322.4 million in 2024, reflecting a growth of 5.1%[67] - Profit-sharing revenue increased to $24.3 million in Q1 2025 from $20.7 million in Q1 2024, representing a growth of 17.9%[67] - Assumed premium earned was $4.3 million in Q1 2025, with no revenue recorded in Q1 2024[67] - The Company recognized revenue of $24.9 million related to contract liabilities during the three months ended March 31, 2025[68] - Investment income for Q1 2025 was $2.9 million, compared to $2.3 million in Q1 2024, marking a growth of 26.6%[67] Shareholder and Equity Information - The weighted-average shares of Class A common stock outstanding increased to 66,067,143 for the three months ended March 31, 2025, from 61,856,147 in the same period of 2024[17] - The total fair value of shares that vested and settled under the share-based compensation plans was $36.7 million for the three months ended March 31, 2025, compared to $16.9 million for the same period in 2024, an increase of 117.7%[84] - The Company recognized share-based compensation expense of $12.8 million for the three months ended March 31, 2025, down from $14.1 million in 2024, a decrease of 9.2%[85] Debt and Financing - 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% as of December 31, 2024[75] - The carrying amount of long-term debt reflects outstanding borrowings net of unamortized debt issuance costs of $28.2 million as of March 31, 2025[99] - An increase of 100 basis points on the term SOFR rate at March 31, 2025 would increase the annual interest expense under the 2024 Credit Facility by $9.3 million[225] Legal and Contingent Liabilities - The company is involved in various legal claims, with potential losses estimated between $0 and $2.4 million depending on the outcome of an appeal[103] - 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] Future Outlook and Changes - The company expects to adopt new accounting standards that will enhance expense disclosures starting January 1, 2024, which may impact future financial reporting[38] - The company has not yet completed its evaluation of the consideration paid and assets and liabilities acquired for the business combination with MultiStrat Group[124]