- Third Quarter 2023 Revenue Grew 18%
Year-Over-Year to $306.3 Million -
- Third Quarter 2023 Organic Revenue Growth(1)
of 19% -
BRP Group, Inc. (“BRP Group” or the “Company”) (NASDAQ: BRP), an
independent insurance distribution firm delivering tailored
insurance solutions to a wide range of personal and commercial
Clients, today announced its results for the third quarter ended
September 30, 2023.
THIRD QUARTER 2023 HIGHLIGHTS
- Revenue increased 18% year-over-year to $306.3 million
- Organic Revenue Growth was 19% year-over-year
- GAAP net loss of $32.0 million and GAAP diluted loss per share
of $0.29
- Adjusted Net Income(2) of $33.8 million, or $0.29(2) per fully
diluted share
- Adjusted EBITDA(3) grew 53% year-over-year to $64.0
million
- Adjusted EBITDA Margin(3) of 21%, a 480 basis point increase
compared to 16% in the prior-year period
“The robust underlying health, momentum and operating leverage
in our business was evident in this quarter’s results, as we
generated organic growth of 19% and approximately 480 basis points
of margin accretion versus the third quarter of 2022, on the back
of continued execution, growing contribution from prior investments
and ongoing efforts to drive greater free cash flow from the
business,” said Trevor Baldwin, Chief Executive Officer of BRP
Group. “As a result, net cash from business operations grew by $39
million year over year despite a $36 million increase in cash paid
for interest. Additionally, as a result of the growth in Adjusted
EBITDA during the quarter, leverage now sits at 4.8x, representing
meaningful progress over the last 12 months toward our goal of
rapidly reducing leverage. We remain well positioned heading into
2024 and beyond to continue generating sustainable double-digit top
line organic growth, durable and consistent margin accretion and
creating long-term value for our shareholders.”
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 2023, cash and cash equivalents were $79.0
million and the Company had $276.0 million of borrowing capacity
under its revolving credit facility.
NINE MONTHS 2023 RESULTS
- Revenue increased 27% year-over-year to $933.9 million
- Organic Revenue Growth of 20% year-over-year
- GAAP net loss of $101.5 million and GAAP diluted loss per share
of $0.93
- Adjusted Net Income of $114.9 million, or $0.98 per fully
diluted share
- Adjusted EBITDA grew 30% year-over-year to $204.6 million
- Adjusted EBITDA Margin of 22%
WEBCAST AND CONFERENCE CALL INFORMATION
BRP Group will host a webcast and conference call to discuss
third quarter 2023 results today at 5:00 PM ET. A live webcast and
a slide presentation of the conference call will be available on
BRP Group’s investor relations website at
ir.baldwinriskpartners.com. The dial-in number for the conference
call is (877) 451-6152 (toll-free) or (201) 389-0879
(international). Please dial the number 10 minutes prior to the
scheduled start time.
A webcast replay of the call will be available at
ir.baldwinriskpartners.com for one year following the call.
ABOUT BRP GROUP, INC.
BRP Group (NASDAQ: BRP) is an independent insurance distribution
firm delivering tailored insurance and risk management insights and
solutions that give our Clients the peace of mind to pursue their
purpose, passion and dreams. We are innovating the industry by
taking a holistic and tailored approach to risk management,
insurance and employee benefits, and support our Clients,
Colleagues, Insurance Company Partners and communities through the
deployment of vanguard resources and capital to drive our growth.
BRP Group represents over two million Clients across the United
States and internationally. For more information, please visit
www.baldwinriskpartners.com.
FOOTNOTES
(1) Organic Revenue for the three and nine months ended September
30, 2022 used to calculate Organic Revenue Growth for the three and
nine months ended September 30, 2023 was $255.7 million and $734.1
million, respectively, which is adjusted to reflect revenues from
Partnerships that have reached the twelve-month owned mark during
the three and nine months ended September 30, 2023. Organic Revenue
and Organic Revenue Growth are non-GAAP measures. Reconciliation of
Organic Revenue and Organic Revenue Growth to commissions and fees,
the most directly comparable GAAP financial measure, is set forth
in the reconciliation table accompanying this release. (2) Adjusted
Net Income and Adjusted Diluted EPS are non-GAAP measures.
Reconciliation of Adjusted Net Income to net income (loss)
attributable to BRP Group and reconciliation of Adjusted Diluted
EPS to diluted earnings (loss) per share, the most directly
comparable GAAP financial measures, is set forth in the
reconciliation table accompanying this release. (3) Adjusted EBITDA
and Adjusted EBITDA Margin are non-GAAP measures. Reconciliation of
Adjusted EBITDA and Adjusted EBITDA Margin to net income (loss),
the most directly comparable GAAP financial measure, is set forth
in the reconciliation table accompanying this release.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release may contain various “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, which represent BRP Group’s expectations or
beliefs concerning future events. Forward-looking statements are
statements other than historical facts and may include statements
that address future operating, financial or business performance or
BRP Group’s strategies or expectations. In some cases, you can
identify these statements by forward-looking words such as “may,”
“might,” “will,” “should,” “expects,” “plans,” “anticipates,”
“believes,” “estimates,” “predicts,” “projects,” “potential,”
“outlook” or “continue,” or the negative of these terms or other
comparable terminology. Forward-looking statements are based on
management’s current expectations and beliefs and involve
significant risks and uncertainties that could cause actual
results, developments and business decisions to differ materially
from those contemplated by these statements.
Factors that could cause actual results or performance to differ
from the expectations expressed or implied in such forward-looking
statements include, but are not limited to, those described under
the caption “Risk Factors” in BRP Group’s Annual Report on Form
10-K for the year ended December 31, 2022 and in BRP Group’s other
filings with the SEC, which are available free of charge on the
SEC's website at: www.sec.gov, including those risks and other
factors relevant to the business, financial condition and results
of operations of BRP Group. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those indicated.
All forward-looking statements and all subsequent written and oral
forward-looking statements attributable to BRP Group or to persons
acting on behalf of BRP Group are expressly qualified in their
entirety by reference to these risks and uncertainties. You should
not place undue reliance on forward-looking statements.
Forward-looking statements speak only as of the date they are made,
and BRP Group does not undertake any obligation to update them in
light of new information, future developments or otherwise, except
as may be required under applicable law.
BRP GROUP, INC.
Condensed Consolidated
Statements of Comprehensive Income (Loss)
(Unaudited)
For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
(in thousands, except share and per
share data)
2023
2022
2023
2022
Revenues:
Commissions and fees
$
306,270
$
259,368
$
933,907
$
734,676
Operating expenses:
Commissions, employee compensation and
benefits
220,469
195,920
676,659
522,518
Other operating expenses
47,165
47,212
141,254
124,424
Amortization expense
23,183
23,180
69,505
59,912
Change in fair value of contingent
consideration
13,914
21,695
55,065
(10,809
)
Depreciation expense
1,453
1,216
4,250
3,309
Total operating expenses
306,184
289,223
946,733
699,354
Operating income (loss)
86
(29,855
)
(12,826
)
35,322
Other income (expense):
Interest expense, net
(30,580
)
(20,766
)
(87,600
)
(45,748
)
Other income (expense), net
(1,351
)
3,914
(193
)
25,151
Total other expense
(31,931
)
(16,852
)
(87,793
)
(20,597
)
Income (loss) before income taxes
(31,845
)
(46,707
)
(100,619
)
14,725
Income tax expense
161
—
904
—
Net income (loss)
(32,006
)
(46,707
)
(101,523
)
14,725
Less: net income (loss) attributable to
noncontrolling interests
(14,377
)
(21,914
)
(45,865
)
8,007
Net income (loss) attributable to BRP
Group
$
(17,629
)
$
(24,793
)
$
(55,658
)
$
6,718
Comprehensive income (loss)
$
(32,006
)
$
(46,707
)
$
(101,523
)
$
14,725
Comprehensive income (loss) attributable
to noncontrolling interests
(14,377
)
(21,914
)
(45,865
)
8,007
Comprehensive income (loss) attributable
to BRP Group
(17,629
)
(24,793
)
(55,658
)
6,718
Basic earnings (loss) per share
$
(0.29
)
$
(0.43
)
$
(0.93
)
$
0.12
Diluted earnings (loss) per share
$
(0.29
)
$
(0.43
)
$
(0.93
)
$
0.11
Weighted-average shares of Class A common
stock outstanding - basic
60,549,080
57,282,132
59,791,435
56,430,095
Weighted-average shares of Class A common
stock outstanding - diluted
60,549,080
57,282,132
59,791,435
59,895,371
BRP GROUP, INC.
Condensed Consolidated Balance
Sheets
(Unaudited)
(in thousands, except share and per
share data)
September 30, 2023
December 31, 2022
Assets
Current assets:
Cash and cash equivalents
$
78,965
$
118,090
Restricted cash
115,429
112,381
Premiums, commissions and fees receivable,
net
595,359
531,992
Prepaid expenses and other current
assets
12,370
9,936
Total current assets
802,123
772,399
Property and equipment, net
24,378
25,405
Right-of-use assets
88,586
96,465
Other assets
41,738
45,935
Intangible assets, net
1,044,824
1,099,918
Goodwill
1,421,849
1,422,060
Total assets
$
3,423,498
$
3,462,182
Liabilities, Mezzanine Equity
and Stockholders’ Equity
Current liabilities:
Premiums payable to insurance
companies
$
502,081
$
471,294
Producer commissions payable
65,855
53,927
Accrued expenses and other current
liabilities
131,418
125,743
Related party notes payable
1,525
1,525
Current portion of contingent earnout
liabilities
97,620
46,717
Total current liabilities
798,499
699,206
Revolving line of credit
324,000
505,000
Long-term debt, less current portion
969,711
809,862
Contingent earnout liabilities, less
current portion
175,657
220,219
Operating lease liabilities, less current
portion
81,510
87,692
Other liabilities
241
164
Total liabilities
2,349,618
2,322,143
Commitments and contingencies
Mezzanine equity:
Redeemable noncontrolling interest
333
487
Stockholders’ equity:
Class A common stock, par value $0.01 per
share, 300,000,000 shares authorized; 64,229,313 and 61,447,368
shares issued and outstanding at September 30, 2023 and December
31, 2022, respectively
642
614
Class B common stock, par value $0.0001
per share, 100,000,000 shares authorized; 52,486,094 and 54,504,918
shares issued and outstanding at September 30, 2023 and December
31, 2022, respectively
5
5
Additional paid-in capital
742,553
704,291
Accumulated deficit
(152,422
)
(96,764
)
Stockholder notes receivable
—
(42
)
Total stockholders’ equity attributable to
BRP Group
590,778
608,104
Noncontrolling interest
482,769
531,448
Total stockholders’ equity
1,073,547
1,139,552
Total liabilities, mezzanine equity and
stockholders’ equity
$
3,423,498
$
3,462,182
BRP GROUP, INC.
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
For the Nine Months
Ended September 30,
(in thousands)
2023
2022
Cash flows from operating activities:
Net income (loss)
$
(101,523
)
$
14,725
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization
73,755
63,221
Change in fair value of contingent
consideration
55,065
(10,809
)
Share-based compensation expense
46,637
26,065
(Gain) loss on interest rate caps
489
(25,420
)
Payment of contingent earnout
consideration in excess of purchase price accrual
(22,639
)
(48,943
)
Amortization of deferred financing
costs
3,577
3,894
Other loss
797
369
Changes in operating assets and
liabilities:
Premiums, commissions and fees receivable,
net
(63,367
)
(97,126
)
Prepaid expenses and other current
assets
(6,294
)
(11,087
)
Right-of-use assets
7,671
(15,076
)
Accounts payable, accrued expenses and
other current liabilities
32,793
70,282
Operating lease liabilities
(4,162
)
16,992
Other liabilities
—
(3,740
)
Net cash provided by (used in) operating
activities
22,799
(16,653
)
Cash flows from investing activities:
Capital expenditures
(14,157
)
(15,400
)
Cash consideration paid for asset
acquisitions
(2,118
)
(3,356
)
Investment in business ventures
(673
)
(791
)
Cash consideration paid for business
combinations, net of cash received
—
(387,919
)
Net cash used in investing activities
(16,948
)
(407,466
)
Cash flows from financing activities:
Payment of contingent earnout
consideration up to amount of purchase price accrual
(26,808
)
(47,218
)
Proceeds from revolving line of credit
88,000
512,000
Payments on revolving line of credit
(269,000
)
(20,000
)
Proceeds from issuance of long-term
debt
170,000
—
Payments on long-term debt
(6,815
)
(6,382
)
Payments of debt issuance costs
(4,447
)
(1,751
)
Proceeds from the sale and settlement of
interest rate caps
7,893
19,587
Tax distributions to BRP LLC members
(408
)
(9,393
)
Proceeds from repayment of stockholder
notes receivable
42
156
Distributions to VIEs
(385
)
—
Net cash provided by (used in) financing
activities
(41,928
)
446,999
Net increase (decrease) in cash and cash
equivalents and restricted cash
(36,077
)
22,880
Cash and cash equivalents and restricted
cash at beginning of period
230,471
227,737
Cash and cash equivalents and restricted
cash at end of period
$
194,394
$
250,617
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA, Adjusted EBITDA Margin, Organic Revenue,
Organic Revenue Growth, Adjusted Net Income, Adjusted Diluted
Earnings Per Share (“EPS”) and adjusted net cash provided by
operating activities (“free cash flow”) are not measures of
financial performance under GAAP and should not be considered
substitutes for GAAP measures, including commissions and fees (for
Organic Revenue and Organic Revenue Growth), net income (loss) (for
Adjusted EBITDA and Adjusted EBITDA Margin), net income (loss)
attributable to BRP Group (for Adjusted Net Income), diluted
earnings (loss) per share (for Adjusted Diluted EPS) or net cash
provided by (used in) operating activities (for free cash flow),
which we consider to be the most directly comparable GAAP measures.
These non-GAAP financial measures have limitations as analytical
tools, and when assessing our operating performance, you should not
consider these non-GAAP financial measures in isolation or as
substitutes for commissions and fees, net income (loss), net income
(loss) attributable to BRP Group, diluted earnings (loss) per
share, net cash provided by (used in) operating activities or other
consolidated income statement data prepared in accordance with
GAAP. Other companies in our industry may define or calculate these
non-GAAP financial measures differently than we do, and
accordingly, these measures may not be comparable to similarly
titled measures used by other companies.
We define Adjusted EBITDA as net income (loss) before interest,
taxes, depreciation, amortization, change in fair value of
contingent consideration and certain items of income and expense,
including share-based compensation expense, transaction-related
Partnership and integration expenses, severance, and certain
non-recurring items, including those related to raising capital. We
believe that Adjusted EBITDA is an appropriate measure of operating
performance because it eliminates the impact of income and expenses
that do not relate to business performance, and that the
presentation of this measure enhances an investor’s understanding
of our financial performance.
Adjusted EBITDA Margin is Adjusted EBITDA divided by commissions
and fees. Adjusted EBITDA Margin is a key metric used by management
and our board of directors to assess our financial performance. We
believe that Adjusted EBITDA Margin is an appropriate measure of
operating performance because it eliminates the impact of income
and expenses that do not relate to business performance, and that
the presentation of this measure enhances an investor’s
understanding of our financial performance. We believe that
Adjusted EBITDA Margin is helpful in measuring profitability of
operations on a consolidated level.
Adjusted EBITDA and Adjusted EBITDA Margin have important
limitations as analytical tools. For example, Adjusted EBITDA and
Adjusted EBITDA Margin:
- do not reflect any cash capital expenditure requirements for
the assets being depreciated and amortized that may have to be
replaced in the future;
- do not reflect changes in, or cash requirements for, our
working capital needs;
- do not reflect the impact of certain cash charges resulting
from matters we consider not to be indicative of our ongoing
operations;
- do not reflect the interest expense or the cash requirements
necessary to service interest or principal payments on our
debt;
- do not reflect share-based compensation expense and other
non-cash charges; and
- exclude certain tax payments that may represent a reduction in
cash available to us.
We calculate Organic Revenue based on commissions and fees for
the relevant period by excluding investment income and the first
twelve months of commissions and fees generated from new Partners.
Organic Revenue Growth is the change in Organic Revenue
period-to-period, with prior period results adjusted to include
commissions and fees that were excluded in the prior period because
the relevant Partners had not yet reached the twelve-month owned
mark, but which have reached the twelve-month owned mark in the
current period. For example, revenues from a Partner acquired on
June 1, 2022 are excluded from Organic Revenue for 2022. However,
after June 1, 2023, results from June 1, 2022 to December 31, 2022
for such Partners are compared to results from June 1, 2023 to
December 31, 2023 for purposes of calculating Organic Revenue
Growth in 2023. Organic Revenue Growth is a key metric used by
management and our board of directors to assess our financial
performance. We believe that Organic Revenue and Organic Revenue
Growth are appropriate measures of operating performance as they
allow investors to measure, analyze and compare growth in a
meaningful and consistent manner.
We define Adjusted Net Income as net income (loss) attributable
to BRP Group adjusted for depreciation, amortization, change in
fair value of contingent consideration and certain items of income
and expense, including share-based compensation expense,
transaction-related Partnership and integration expenses,
severance, and certain non-recurring costs that, in the opinion of
management, significantly affect the period-over-period assessment
of operating results, and the related tax effect of those
adjustments. We believe that Adjusted Net Income is an appropriate
measure of operating performance because it eliminates the impact
of expenses that do not relate to business performance.
Adjusted Diluted EPS measures our per share earnings excluding
certain expenses as discussed above and assuming all shares of
Class B common stock were exchanged for Class A common stock on a
one-for-one basis. Adjusted Diluted EPS is calculated as Adjusted
Net Income divided by adjusted diluted weighted-average shares
outstanding. We believe Adjusted Diluted EPS is useful to investors
because it enables them to better evaluate per share operating
performance across reporting periods.
We calculate free cash flow because we hold fiduciary cash
designated for our Insurance Company Partners on behalf of our
Clients and incur substantial earnout liabilities in conjunction
with our Partnership strategy. Free cash flow is calculated as net
cash provided by (used in) operating activities excluding the
impact of: (i) the change in premiums, commissions and fees
receivable, net; (ii) the change in accounts payable, accrued
expenses and other current liabilities; and (iii) the payment of
contingent earnout consideration in excess of purchase price
accrual. We believe that free cash flow is an important financial
measure for use in evaluating financial performance because it
measures our ability to generate additional cash from our business
operations.
Reconciliation of guidance regarding Adjusted EBITDA, Organic
Revenue Growth, Adjusted Diluted EPS and free cash flow to the most
directly comparable GAAP measures is not available without
unreasonable efforts on a forward-looking basis due to the high
variability, complexity, and low visibility with respect to
commissions and fees, net income (loss), diluted earnings (loss)
per share or other consolidated income statement data prepared in
accordance with GAAP. The Company is currently unable to predict
with a reasonable degree of certainty the type and extent of items
that would be expected to impact these GAAP financial measures for
these periods. The unavailable information could have a significant
impact on the non-GAAP measures.
Adjusted EBITDA and Adjusted EBITDA Margin
The following table reconciles Adjusted EBITDA and Adjusted
EBITDA Margin to net income (loss), which we consider to be the
most directly comparable GAAP financial measure:
For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
(in thousands, except
percentages)
2023
2022
2023
2022
Commissions and fees
$
306,270
$
259,368
$
933,907
$
734,676
Net income (loss)
$
(32,006
)
$
(46,707
)
$
(101,523
)
$
14,725
Adjustments to net income (loss):
Interest expense, net
30,580
20,766
87,600
45,748
Amortization expense
23,183
23,180
69,505
59,912
Change in fair value of contingent
consideration
13,914
21,695
55,065
(10,809
)
Share-based compensation
14,598
8,388
46,637
26,065
Transaction-related Partnership and
integration expenses
3,774
12,128
18,007
29,552
Depreciation expense
1,453
1,216
4,250
3,309
Severance
875
260
3,373
1,135
Income tax provision
161
—
904
—
(Gain) loss on interest rate caps
818
(4,151
)
489
(25,420
)
Other(1)
6,659
5,109
20,289
13,083
Adjusted EBITDA
$
64,009
$
41,884
$
204,596
$
157,300
Adjusted EBITDA Margin
21
%
16
%
22
%
21
%
__________
(1)
Other addbacks to Adjusted EBITDA include certain expenses that are
considered to be non-recurring or non-operational, including
certain recruiting costs, professional fees, litigation costs and
bonuses. In 2022, these addbacks also included certain expenses
related to remediation efforts.
Organic Revenue and Organic Revenue Growth
The following table reconciles Organic Revenue and Organic
Revenue Growth to commissions and fees, which we consider to be the
most directly comparable GAAP financial measure:
For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
(in thousands, except
percentages)
2023
2022
2023
2022
Commissions and fees
$
306,270
$
259,368
$
933,907
$
734,676
Partnership commissions and fees(1)
(985
)
(85,638
)
(44,696
)
(234,601
)
Investment income
(2,038
)
—
(4,601
)
—
Organic Revenue
$
303,247
$
173,730
$
884,610
$
500,075
Organic Revenue Growth(2)
$
47,523
$
38,014
$
150,471
$
91,825
Organic Revenue Growth %(2)
19
%
28
%
20
%
22
%
__________
(1)
Includes the first twelve months
of such commissions and fees generated from newly acquired
Partners.
(2)
Organic Revenue for the three and
nine months ended September 30, 2022 used to calculate Organic
Revenue Growth for the three and nine months ended September 30,
2023 was $255.7 million and $734.1 million, respectively, which is
adjusted to reflect revenues from Partnerships that have reached
the twelve-month owned mark during the three and nine months ended
September 30, 2023.
Adjusted Net Income and Adjusted Diluted EPS
The following table reconciles Adjusted Net Income to net income
(loss) attributable to BRP Group and reconciles Adjusted Diluted
EPS to diluted earnings (loss) per share, which we consider to be
the most directly comparable GAAP financial measures:
For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
(in thousands, except per share
data)
2023
2022
2023
2022
Net income (loss) attributable to BRP
Group
$
(17,629
)
$
(24,793
)
$
(55,658
)
$
6,718
Net income (loss) attributable to
noncontrolling interests
(14,377
)
(21,914
)
(45,865
)
8,007
Amortization expense
23,183
23,180
69,505
59,912
Change in fair value of contingent
consideration
13,914
21,695
55,065
(10,809
)
Share-based compensation
14,598
8,388
46,637
26,065
Transaction-related Partnership and
integration expenses
3,774
12,128
18,007
29,552
(Gain) loss on interest rate caps, net of
cash settlements
3,771
(3,602
)
8,382
(24,871
)
Depreciation
1,453
1,216
4,250
3,309
Amortization of deferred financing
costs
1,244
1,420
3,577
3,894
Severance
875
260
3,373
1,135
Other(1)
6,659
5,109
20,289
13,083
Adjusted pre-tax income
37,465
23,087
127,562
115,995
Adjusted income taxes(2)
3,709
2,286
12,629
11,484
Adjusted Net Income
$
33,756
$
20,801
$
114,933
$
104,511
Weighted-average shares of Class A common
stock outstanding - diluted
60,549
57,282
59,791
59,895
Dilutive effect of unvested stock
awards
3,941
3,675
3,931
—
Exchange of Class B common stock(3)
52,862
55,151
53,367
55,743
Adjusted diluted weighted-average shares
outstanding
117,352
116,108
117,089
115,638
Adjusted Diluted EPS
$
0.29
$
0.18
$
0.98
$
0.90
Diluted earnings (loss) per share
$
(0.29
)
$
(0.43
)
$
(0.93
)
$
0.11
Effect of exchange of Class B common stock
and net income (loss) attributable to noncontrolling interests per
share
0.02
0.03
0.06
0.02
Other adjustments to earnings (loss) per
share
0.59
0.60
1.96
0.87
Adjusted income taxes per share
(0.03
)
(0.02
)
(0.11
)
(0.10
)
Adjusted Diluted EPS
$
0.29
$
0.18
$
0.98
$
0.90
___________
(1)
Other addbacks to Adjusted Net
Income include certain expenses that are considered to be
non-recurring or non-operational, including certain recruiting
costs, professional fees, litigation costs and bonuses. In 2022,
these addbacks also included certain expenses related to
remediation efforts.
(2)
Represents corporate income taxes
at an assumed effective tax rate of 9.9% applied to adjusted
pre-tax income.
(3)
Assumes the full exchange of
Class B common stock for Class A common stock pursuant to the
Amended LLC Agreement.
Adjusted Net Cash Provided by Operating Activities (“Free
Cash Flow”)
The following table reconciles free cash flow to net cash
provided by (used in) operating activities, which we consider to be
the most directly comparable GAAP financial measure:
For the Nine Months
Ended September 30,
(in thousands)
2023
2022
Net cash provided by (used in) operating
activities
$
22,799
$
(16,653
)
Adjustments to net cash provided by (used
in) operating activities:
Change in premiums, commissions and fees
receivable, net
63,367
97,126
Change in accounts payable, accrued
expenses and other current liabilities
(32,793
)
(70,282
)
Payment of contingent earnout
consideration in excess of purchase price accrual
22,639
48,943
Free cash flow
$
76,012
$
59,134
COMMONLY USED DEFINED TERMS
The following terms have the following meanings throughout this
press release unless the context indicates or requires
otherwise:
Amended LLC Agreement
Third Amended and Restated Limited
Liability Company Agreement of Baldwin Risk Partners, LLC, as
amended
Clients
Our insureds
Colleagues
Our employees
GAAP
Accounting principles generally accepted
in the United States of America
Insurance Company Partners
Insurance companies with which we have a
contractual relationship
Partners
Companies that we have acquired, or in the
case of asset acquisitions, the producers
Partnerships
Strategic acquisitions made by the
Company
SEC
U.S. Securities and Exchange
Commission
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231107951886/en/
INVESTOR RELATIONS Bonnie Bishop, Executive Director,
Investor Relations Baldwin Risk Partners (813) 259-8032 |
IR@baldwinriskpartners.com PRESS Anna R. Rozenich, Senior
Director - Enterprise Communications Baldwin Risk Partners (630)
561-5907 | anna.rozenich@baldwinriskpartners.com
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