Brown & Brown, Inc. Announces a New Record for Its Earnings In the First Quarter

Apr 16, 2001, 01:00 ET from Brown & Brown, Inc.

    DAYTONA BEACH and TAMPA, Fla., April 16 /PRNewswire/ -- Brown & Brown,
 Inc. (NYSE:   BRO) today announced a new record for its earnings in the first
 quarter.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20001003/BROLOGO )
     Net income per share for the quarter ended March 31, 2001, was $0.41, an
 increase of 32% over the $0.31 in net income per share reported for the
 quarter ended March 31, 2000.  Net income rose to $12,174,000 for the first
 quarter of 2001, versus net income of $9,043,000 for the quarter ended
 March 31, 2000, an increase of 35%.
     Total revenues for the quarter ended March 31, 2001 were up 37%, to
 $77,215,000, compared with $56,212,000 recorded in the corresponding quarter
 in 2000.  This increase in revenues reflects the additional revenues from
 several acquisitions completed since January 1, 2001, including the
 transaction with Riedman Corporation.  Excluding acquisitions, the Company's
 internal growth rate of commission and fee revenues was 9% for the quarter
 ended March 31, 2001.
     J. Hyatt Brown, Chairman, President and CEO, commented, "Quarter One was
 Gangbusters!  The 32% increase in net income per share was more than double
 our articulated corporate goal of 15% growth ad infinitum. A slight firming in
 rates, increasing margins at "old" Brown & Brown offices and efficient
 integration of acquisitions accounted for our great first quarter."
     Brown & Brown, Inc. provides a broad range of insurance products and
 services, as well as risk management, employee benefit administration, and
 managed health care services through offices located across the United States.
 The company is ranked by "Business Insurance" magazine as the nation's ninth
 largest independent insurance intermediary organization.  Our Web address is
 www.brown-n-brown.com.
 
     This press release may contain certain statements relating to future
 results which are forward-looking statements, as that term is defined in the
 Private Securities Litigation Reform Act of 1995. These forward-looking
 statements are subject to certain risks and uncertainties that could cause
 actual results to differ materially from historical results or those
 anticipated, depending on a variety of factors such as general economic
 conditions around the country, fluctuations in equity and fixed income
 markets, downward commercial property and casualty premium pressures, the
 competitive environment, the potential occurrence of a major natural disaster
 in certain areas of the States of Arizona, Florida and/or New York, where
 significant portions of the Company's business are concentrated, the actual
 costs of resolution of contingent liabilities, and those factors relevant to
 Brown & Brown's integration of acquisitions, including any material adverse
 changes in the customers of the companies whose operations have been acquired
 and/or any material adverse changes in the business and financial conditions
 of Brown & Brown or acquired companies and their respective customers.
 Further information concerning the company and its business, including factors
 that potentially could materially affect the Company's financial results, are
 contained in the Company's filings with the Securities and Exchange
 Commission. All forward-looking statements included in this press release are
 made only as of the date of this press release, and we do not undertake any
 obligation to publicly update or correct any forward-looking statements to
 reflect events or circumstances that subsequently occur or which we hereafter
 become aware.
 
                                   BROWN & BROWN, INC.
 
                         CONSOLIDATED STATEMENTS OF INCOME
                       (In thousands, except per share data)
 
                                                       For the three months
                                                  ended March 31, (Unaudited)
                                                     2001            2000*
     REVENUES
     Commissions and fees                          $75,828          $54,678
     Investment income                               1,107              981
     Other income                                      280              553
               Total revenues                       77,215           56,212
 
     EXPENSES
     Employee compensation and benefits             39,544           28,753
     Other operating expenses                       11,322            9,037
     Depreciation                                    1,422            1,242
     Amortization                                    3,329            2,167
     Interest                                        1,640              216
               Total expenses                       57,257           41,415
 
     Income before income taxes                     19,958           14,797
     Income taxes                                    7,784            5,754
 
     Net income                                    $12,174           $9,043
 
     Net income per share:
          Basic                                      $0.42            $0.31
          Diluted                                    $0.41            $0.31
 
     Weighted average number of shares
      outstanding:
          Basic                                     29,173           28,752
          Diluted                                   29,460           28,765
 
     * Restated for pooling-of-interests.
 
                              Brown & Brown, Inc.
                  First Quarter Core Commissions and Fees (1)
 
                                                             Less
                                                             Acqui-
                                           Total    Total   sition  Internal
                      3/31/01    3/31/00  Change   Growth% Revenues  Growth%
 
     Florida Retail   $23,978    $19,412  $4,566    23.5%   $3,213      7.0%
     Southwest Retail   8,445      5,420   3,025    55.8%    2,550      8.8%
     National Retail   18,221     10,035   8,186    81.6%    8,298    (1.1)%
        Total Retail   50,644     34,867  15,777    45.2%   14,061      4.9%
 
     Professional
      Programs          3,517      3,424      93     2.7%       --      2.7%
     Commercial
      Programs            889      1,272   (383)  (30.1)%       16   (31.4)%
        Total Programs  4,406      4,696   (290)   (6.2)%       16    (6.5)%
 
     Brokerage          6,832      4,873   1,959    40.2%       41     39.4%
 
     TPA Services       5,747      4,002   1,745    43.6%      713     25.8%
 
     Total Core
      Commissions
      and Fees        $67,629    $48,438  $19,191   39.6%    $14,831    9.0%
 
     (1)Total Commission and Fees excluding profit sharing contingency
        revenues.
 
 

SOURCE Brown & Brown, Inc.
    DAYTONA BEACH and TAMPA, Fla., April 16 /PRNewswire/ -- Brown & Brown,
 Inc. (NYSE:   BRO) today announced a new record for its earnings in the first
 quarter.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20001003/BROLOGO )
     Net income per share for the quarter ended March 31, 2001, was $0.41, an
 increase of 32% over the $0.31 in net income per share reported for the
 quarter ended March 31, 2000.  Net income rose to $12,174,000 for the first
 quarter of 2001, versus net income of $9,043,000 for the quarter ended
 March 31, 2000, an increase of 35%.
     Total revenues for the quarter ended March 31, 2001 were up 37%, to
 $77,215,000, compared with $56,212,000 recorded in the corresponding quarter
 in 2000.  This increase in revenues reflects the additional revenues from
 several acquisitions completed since January 1, 2001, including the
 transaction with Riedman Corporation.  Excluding acquisitions, the Company's
 internal growth rate of commission and fee revenues was 9% for the quarter
 ended March 31, 2001.
     J. Hyatt Brown, Chairman, President and CEO, commented, "Quarter One was
 Gangbusters!  The 32% increase in net income per share was more than double
 our articulated corporate goal of 15% growth ad infinitum. A slight firming in
 rates, increasing margins at "old" Brown & Brown offices and efficient
 integration of acquisitions accounted for our great first quarter."
     Brown & Brown, Inc. provides a broad range of insurance products and
 services, as well as risk management, employee benefit administration, and
 managed health care services through offices located across the United States.
 The company is ranked by "Business Insurance" magazine as the nation's ninth
 largest independent insurance intermediary organization.  Our Web address is
 www.brown-n-brown.com.
 
     This press release may contain certain statements relating to future
 results which are forward-looking statements, as that term is defined in the
 Private Securities Litigation Reform Act of 1995. These forward-looking
 statements are subject to certain risks and uncertainties that could cause
 actual results to differ materially from historical results or those
 anticipated, depending on a variety of factors such as general economic
 conditions around the country, fluctuations in equity and fixed income
 markets, downward commercial property and casualty premium pressures, the
 competitive environment, the potential occurrence of a major natural disaster
 in certain areas of the States of Arizona, Florida and/or New York, where
 significant portions of the Company's business are concentrated, the actual
 costs of resolution of contingent liabilities, and those factors relevant to
 Brown & Brown's integration of acquisitions, including any material adverse
 changes in the customers of the companies whose operations have been acquired
 and/or any material adverse changes in the business and financial conditions
 of Brown & Brown or acquired companies and their respective customers.
 Further information concerning the company and its business, including factors
 that potentially could materially affect the Company's financial results, are
 contained in the Company's filings with the Securities and Exchange
 Commission. All forward-looking statements included in this press release are
 made only as of the date of this press release, and we do not undertake any
 obligation to publicly update or correct any forward-looking statements to
 reflect events or circumstances that subsequently occur or which we hereafter
 become aware.
 
                                   BROWN & BROWN, INC.
 
                         CONSOLIDATED STATEMENTS OF INCOME
                       (In thousands, except per share data)
 
                                                       For the three months
                                                  ended March 31, (Unaudited)
                                                     2001            2000*
     REVENUES
     Commissions and fees                          $75,828          $54,678
     Investment income                               1,107              981
     Other income                                      280              553
               Total revenues                       77,215           56,212
 
     EXPENSES
     Employee compensation and benefits             39,544           28,753
     Other operating expenses                       11,322            9,037
     Depreciation                                    1,422            1,242
     Amortization                                    3,329            2,167
     Interest                                        1,640              216
               Total expenses                       57,257           41,415
 
     Income before income taxes                     19,958           14,797
     Income taxes                                    7,784            5,754
 
     Net income                                    $12,174           $9,043
 
     Net income per share:
          Basic                                      $0.42            $0.31
          Diluted                                    $0.41            $0.31
 
     Weighted average number of shares
      outstanding:
          Basic                                     29,173           28,752
          Diluted                                   29,460           28,765
 
     * Restated for pooling-of-interests.
 
                              Brown & Brown, Inc.
                  First Quarter Core Commissions and Fees (1)
 
                                                             Less
                                                             Acqui-
                                           Total    Total   sition  Internal
                      3/31/01    3/31/00  Change   Growth% Revenues  Growth%
 
     Florida Retail   $23,978    $19,412  $4,566    23.5%   $3,213      7.0%
     Southwest Retail   8,445      5,420   3,025    55.8%    2,550      8.8%
     National Retail   18,221     10,035   8,186    81.6%    8,298    (1.1)%
        Total Retail   50,644     34,867  15,777    45.2%   14,061      4.9%
 
     Professional
      Programs          3,517      3,424      93     2.7%       --      2.7%
     Commercial
      Programs            889      1,272   (383)  (30.1)%       16   (31.4)%
        Total Programs  4,406      4,696   (290)   (6.2)%       16    (6.5)%
 
     Brokerage          6,832      4,873   1,959    40.2%       41     39.4%
 
     TPA Services       5,747      4,002   1,745    43.6%      713     25.8%
 
     Total Core
      Commissions
      and Fees        $67,629    $48,438  $19,191   39.6%    $14,831    9.0%
 
     (1)Total Commission and Fees excluding profit sharing contingency
        revenues.
 
 SOURCE  Brown & Brown, Inc.

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