Mar 31, 2020

Brown & Brown Q1 2020 Earnings Report

Reported quarterly revenues increased by 12.8% and diluted net income per share increased.

Key Takeaways

Brown & Brown, Inc. announced its financial results for the first quarter of 2020, with revenues increasing by 12.8% to $698.5 million and diluted net income per share increasing to $0.54.

Revenues for the first quarter of 2020 were $698.5 million, an increase of 12.8% compared to the first quarter of the prior year.

Commissions and fees increased by 12.8% and Organic Revenue increased by 5.6%.

Net income was $152.4 million, increasing by 33.8% compared to the first quarter of the prior year.

Diluted net income per share increased to $0.54, or 35.0%, each as compared to the first quarter of the prior year.

Total Revenue
$699M
Previous year: $619M
+12.8%
EPS
$0.51
Previous year: $0.41
+24.4%
Organic Revenue Growth
5.6%
Previous year: 5.6%
+0.0%
Gross Profit
$347M
Previous year: $285M
+21.9%
Cash and Equivalents
$386M
Previous year: $322M
+19.6%
Free Cash Flow
$17.4M
Previous year: -$17.8M
-197.4%
Total Assets
$7.58B
Previous year: $6.81B
+11.4%

Brown & Brown

Brown & Brown

Brown & Brown Revenue by Segment

Forward Guidance

The Company anticipates borrowing approximately $250 million on its existing revolving line of credit by May 1, 2020. The proceeds are expected to be used in connection with the payment of the purchase price for the previously announced acquisition LP Insurance Services LLC and for additional liquidity to further strengthen the Company’s financial position and balance sheet in the event cash receipts from customers or carrier partners are delayed due to COVID-19.

Revenue & Expenses

Visualization of income flow from segment revenue to net income