BRP(US:BRP)2024-05-07 20:18Financial Performance - Total revenues for the three months ended March 31, 2024, were $380.367 million, an increase of 15.1% from $330.446 million in the same period of 2023[67] - Operating income for the same period was $34.258 million, significantly up from $3.619 million in the prior year, reflecting a substantial improvement in profitability[67] - Net income attributable to Baldwin for the three months ended March 31, 2024, was $21.578 million, compared to a net loss of $14.132 million in the same period of 2023[67] - The company reported basic earnings per share of $0.35 for the three months ended March 31, 2024, compared to a loss per share of $0.24 in the prior year[67] - Commissions and fees revenue increased to $378.096 million, up from $329.523 million, representing a growth of 14.7% year-over-year[67] - Total operating expenses for the three months ended March 31, 2024, were $346.109 million, compared to $326.827 million in the same period of 2023, indicating a rise of 5.9%[67] - Baldwin Holdings recorded a net income of $21.6 million for the three months ended March 31, 2024, compared to a net loss of $14.1 million for the same period in 2023, resulting in a basic earnings per share of $0.35[98] - The Company recorded commission revenue of $1.8 million from transactions with The Villages and affiliated entities for the three months ended March 31, 2024, compared to $1.5 million in 2023, reflecting a 20% increase[93] Debt and Financing - As of March 31, 2024, the company had senior secured credit facilities totaling $1.62 billion, including a term loan of $1.02 billion and a revolving credit facility of $600 million[89] - The outstanding borrowings on the Revolving Facility were $334.0 million at March 31, 2024, with an applicable interest rate of 8.50%[90] - The outstanding borrowings on Term Loan B were $996.2 million at March 31, 2024, with an applicable interest rate of 8.94%[118] - As of March 31, 2024, Baldwin Holdings reported $996.2 million in borrowings under the Term Loan B and $334.0 million under the Revolving Facility[278] - An increase of 100 basis points in variable interest rates would raise annual interest expense by $13.3 million[278] Contract and Asset Management - The company recognized revenue of $23.9 million related to contract liabilities balance at December 31, 2023[87] - Total contract assets increased to $415.3 million at March 31, 2024, compared to $342.7 million at December 31, 2023, representing a 21.1% increase[115] - The fair value of contingent earnout liabilities increased by $12.7 million for the three months ended March 31, 2024, with a maximum estimated exposure of $547.7 million[103] - The fair value of contingent earnout liabilities decreased from $276.5 million on December 31, 2023, to $235.9 million on March 31, 2024, reflecting a reduction of approximately 14.7%[130] Shareholder and Compensation Information - The total fair value of shares that vested and settled under the Omnibus Incentive Plan and the Inducement Plan was $16.9 million for the three months ended March 31, 2024, up from $13.7 million in 2023[96] - Share-based compensation expense for the three months ended March 31, 2024, was $14.1 million, compared to $13.3 million in 2023, indicating a 6.0% increase[126] Tax and Regulatory Matters - The company expects to expand its income tax disclosures following the adoption of ASU 2023-09, effective for fiscal years beginning after December 15, 2024[80] Other Financial Metrics - Revenue growth rates for the company ranged from 9% to 25% as of March 31, 2024, compared to 10% to 35% as of December 31, 2023[132] - The estimated fair value of long-term debt decreased from $997.5 million on December 31, 2023, to $993.7 million on March 31, 2024[134] - The discount rates for future payments related to contingent earnout liabilities ranged from 10.00% to 12.25% as of March 31, 2024, compared to 7.50% to 13.75% as of December 31, 2023[132] Related Party Transactions - Total rent expense incurred with respect to related parties was $0.9 million for the three months ended March 31, 2024, down from $1.0 million in 2023[94] - The Company had $0.8 million due from related parties at March 31, 2024, a decrease from $1.5 million at December 31, 2023[120] Intercompany Transactions - Intercompany commissions and fees for the UCTS Operating Group were $17.0 million for the three months ended March 31, 2024[139] - The company generates commissions from insurance placement and profit-sharing income based on performance metrics[136] Fair Value Measurement - The fair value hierarchy established by ASC Topic 820 prioritizes inputs for measuring fair value, with Level 1 being the highest priority[129]