Brown & Brown(US:BRO)2022-07-25 16:00Financial Performance - Total revenues for Q2 2022 reached $839.7 million, a 15.4% increase from $727.3 million in Q2 2021[19] - Net income for Q2 2022 was $145.2 million, compared to $139.3 million in Q2 2021, reflecting a 4.3% growth[19] - Basic and diluted net income per share for Q2 2022 was $0.51, up from $0.49 in Q2 2021[19] - Total revenues for the six months ended June 30, 2022, amounted to $1,744.5 million, with a breakdown of $1,054.0 million from base commissions, $440.9 million from fees, and $99.1 million from other supplemental commissions[45] - Net income for the six months ended June 30, 2022, was $365.5 million, an increase from $339.0 million in the same period of 2021, representing a growth of approximately 7.7%[32] - Total revenues for the three months ended June 30, 2022, were $841.3 million, representing a 12.9% increase from $745.5 million in the same period of 2021[61] - Net income for the three months ended June 30, 2022, was $145.2 million, a 4.2% increase from $139.3 million in the same period of 2021[109] - Total revenues for the three months ended June 30, 2022, reached $839.7 million, a significant increase from $727.3 million in the same period of 2021, representing a growth of approximately 15.4%[86] Assets and Liabilities - Total current assets increased to $5,330.4 million as of June 30, 2022, compared to $3,330.3 million at December 31, 2021[27] - Total assets rose to $12,279.9 million as of June 30, 2022, from $9,795.4 million at December 31, 2021[27] - Long-term debt increased to $4,156.3 million as of June 30, 2022, compared to $1,980.4 million at December 31, 2021[27] - The balance of retained earnings as of June 30, 2022, was $4,308.3 million, reflecting a slight increase from $4,192.1 million at the end of March 31, 2022[29] - Total assets as of March 31, 2022, amounted to $4,335.4 million, compared to $4,196.9 million at the end of December 31, 2021[29] - The total outstanding shares as of June 30, 2022, were 282.2 million, a decrease from 283.1 million at the end of March 31, 2022[29] - The company reported a foreign currency translation loss of $130.2 million for the quarter ended March 31, 2022[29] Cash Flow and Investments - Net cash provided by operating activities decreased to $346.2 million from $379.9 million, a decline of about 8.8% year-over-year[32] - Net cash used in investing activities increased significantly to $467.5 million compared to $136.3 million in the prior year, indicating a rise of approximately 243.5%[32] - Cash and cash equivalents at the end of the period rose to $3,287.5 million, up from $1,351.0 million, marking an increase of approximately 143.5%[32] - The company reported an increase in accounts payable to $101.3 million, up from $71.0 million, reflecting a growth of about 42.6%[32] - Payments for businesses acquired, net of cash acquired, amounted to $457.2 million, a significant increase from $116.6 million in the prior year[32] - The company reported a total of $90.7 million in cash flows from operating activities, with no significant changes in presentation[39] - The total restated changes in cash flows were $90.7 million, indicating stable cash flow management[39] Shareholder Returns - Dividends declared per share increased to $0.103 in Q2 2022 from $0.093 in Q2 2021[19] - Cash dividends paid were $28.9 million at a rate of $0.1025 per share for the quarter ended March 31, 2022[29] - The Company paid dividends of $0.1025 per share totaling $28.9 million in Q1 2022 and $29.0 million in Q2 2022[96] - The Company has outstanding approval to purchase up to approximately $249.6 million of its common stock[94] - The Company completed share repurchases of 777,926 shares at a total cost of $50.0 million from April 1, 2022 to June 30, 2022, at an average price of $64.27 per share[94] Segment Performance - The company operates through four reportable segments, including Retail, National Programs, Wholesale Brokerage, and Services, focusing on diverse insurance products and services[35] - The Retail Segment generated $457.6 million in revenues for the three months ended June 30, 2022, compared to $401.1 million in the same period of 2021, reflecting a growth of about 14.1%[86] - The National Programs Segment reported revenues of $225.7 million for the three months ended June 30, 2022, compared to $176.3 million in the same period of 2021, marking a growth of about 28.0%[86] - The Wholesale Brokerage Segment generated $112.4 million in revenues for the three months ended June 30, 2022, up from $104.6 million in the same period of 2021, reflecting a growth of approximately 7.4%[86] - The Services Segment reported revenues of $44.0 million for the three months ended June 30, 2022, compared to $44.9 million in the same period of 2021, indicating a slight decrease of about 2.0%[86] Acquisitions and Growth - During the six months ended June 30, 2022, the company completed ten acquisitions for a total cash payment of $500.9 million[55] - The total revenues from acquisitions completed through June 30, 2022, amounted to $19.2 million, while the income before income taxes from these acquisitions was a loss of $3.2 million[60] - Goodwill from acquisitions totaled $421.4 million, with $16.0 million currently deductible for income tax purposes[58] - The company anticipates continued growth in organic revenue driven by strategic acquisitions and market expansion efforts[126] Debt and Financing - The company issued $600.0 million of 4.200% Senior Notes due 2032 and $600.0 million of 4.950% Senior Notes due 2052, with total outstanding debt from these notes at $1,200.0 million as of June 30, 2022[69] - The company has a 5-year revolving loan facility of $250.0 million, which expires on October 27, 2026[69] - The company maintained compliance with all financial ratios and covenants as of June 30, 2022[71] - The company has an outstanding debt balance of $300.0 million under the Term A-1 Loans and $493.8 million under Term A-2 Loans as of June 30, 2022[71] - The company utilized proceeds from debt issuances for general corporate purposes and to repay outstanding balances on the Revolving Credit Facility[69] Operating Expenses - Total expenses for Q2 2022 were $640.9 million, up from $541.0 million in Q2 2021, marking an 18.5% increase[19] - Employee compensation and benefits expense as a percentage of total revenues decreased to 49.1% for the three months ended June 30, 2022, down from 54.4% in the same period of 2021[115] - Other operating expenses increased by 59.9% to $154.0 million for the second quarter of 2022, representing 18.3% of total revenues[116] - Interest expense for Q2 2022 increased by $19.7 million, or 120.9%, compared to Q2 2021, and for the six months ended June 30, 2022, it increased by $21.7 million, or 66.6% compared to the same period in 2021[121] Taxation - The effective tax rate on income from operations for Q2 2022 was 27.0%, up from 25.2% in Q2 2021, and for the six months ended June 30, 2022, it was 21.2%, compared to 20.3% in the same period of 2021[123]