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DAYTONA BEACH, Fla., Jan. 27, 2025 (GLOBE NEWSWIRE) -- Brown & Brown, Inc. (NYSE:BRO) (the "Company") announced its unaudited financial results for the fourth quarter and full year of 2024.
Revenues for the fourth quarter of 2024 under U.S. generally accepted accounting principles ("GAAP") were $1.2 billion, increasing $158 million, or 15.4%, compared to the fourth quarter of the prior year, with commissions and fees increasing by 15.4% and Organic Revenue increasing by 13.8%. Income before income taxes was $275 million, decreasing 22.8% from the fourth quarter of the prior year with Income Before Income Taxes Margin decreasing to 23.2% from 34.7% as a result of a gain on disposal of certain third-party claims administration and adjusting services businesses sold in the fourth quarter of 2023. EBITDAC - Adjusted was $390 million, increasing 22.6% from the fourth quarter of the prior year with EBITDAC Margin - Adjusted increasing to 32.9% from 31.0%. Net income attributable to the Company was $210 million, decreasing $59 million, or 21.9%, and diluted net income per share decreased to $0.73, or 22.3%, with Diluted Net Income Per Share - Adjusted increasing to $0.86, or 24.6%, each as compared to the fourth quarter of the prior year.
Revenues for the twelve months ended December 31, 2024 under GAAP were $4.8 billion, increasing $548 million, or 12.9%, as compared to 2023, with commissions and fees increasing by 12.1%, and Organic Revenue increasing by 10.4%. Income before income taxes was $1.3 billion, increasing 13.7% with Income Before Income Taxes Margin increasing to 27.1% from 26.9% as compared to 2023. EBITDAC - Adjusted was $1.7 billion, which was an increase of 17.0% and EBITDAC Margin - Adjusted increased to 35.2% from 33.9% as compared to 2023. Net income attributable to the Company was $1.0 billion, increasing $122 million, or 14.0%, with diluted net income per share increasing to $3.46, or 13.4%, and Diluted Net Income Per Share - Adjusted increasing to $3.84, or 18.2%, each as compared to 2023.
J. Powell Brown, president and chief executive officer of the Company, noted, "The fourth quarter was outstanding. We are extremely pleased with our 10.4% Organic Revenue growth for 2024. These results were only possible through the incredible efforts of our 17,000+ teammates.”
| Reconciliation of Commissions and Fees | ||||||||||||||||
| to Organic Revenue | ||||||||||||||||
| (in millions, unaudited) | ||||||||||||||||
| Three Months Ended
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| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Commissions and fees | $ | 1,161 | $ | 1,006 | $ | 4,705 | $ | 4,199 | ||||||||
| Profit-sharing contingent commissions | (57 | ) | (42 | ) | (166 | ) | (130 | ) | ||||||||
| Core commissions and fees | $ | 1,104 | $ | 964 | $ | 4,539 | $ | 4,069 | ||||||||
| Acquisitions | (26 | ) | (146 | ) | ||||||||||||
| Dispositions | (20 | ) | (101 | ) | ||||||||||||
| Foreign Currency Translation | 3 | 10 | ||||||||||||||
| Organic Revenue | $ | 1,078 | $ | 947 | $ | 4,393 | $ | 3,978 | ||||||||
| Organic Revenue growth | $ | 131 | $ | 415 | ||||||||||||
| Organic Revenue growth % | 13.8 | % | 10.4 | % | ||||||||||||
See information regarding non-GAAP measures presented later in this press release.
| Reconciliation of Diluted Net Income Per Share to | ||||||||||||||||||||||||||||||||
| Diluted Net Income Per Share - Adjusted | ||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended December 31, | Change | Twelve Months Ended
December 31, | Change | |||||||||||||||||||||||||||||
| 2024 | 2023 | $ | % | 2024 | 2023 | $ | % | |||||||||||||||||||||||||
| Diluted net income per share | $ | 0.73 | $ | 0.94 | $ | (0.21 | ) | (22.3 | %) | $ | 3.46 | $ | 3.05 | $ | 0.41 | 13.4 | % | |||||||||||||||
| Change in estimated acquisition earn-out payables | 0.02 | (0.02 | ) | 0.04 | - | 0.06 | (0.06 | ) | ||||||||||||||||||||||||
| (Gain)/loss on disposal (1) | (0.02 | ) | (0.35 | ) | 0.33 | (0.09 | ) | (0.37 | ) | 0.28 | ||||||||||||||||||||||
| Acquisition/Integration Costs | - | 0.01 | (0.01 | ) | - | 0.04 | (0.04 | ) | ||||||||||||||||||||||||
| Amortization | 0.13 | 0.11 | 0.02 | 0.47 | 0.44 | 0.03 | ||||||||||||||||||||||||||
| 1Q23 Nonrecurring Cost | - | - | - | - | 0.03 | (0.03 | ) | |||||||||||||||||||||||||
| Diluted Net Income Per Share - Adjusted | $ | 0.86 | $ | 0.69 | $ | 0.17 | 24.6 | % | $ | 3.84 | $ | 3.25 | $ | 0.59 | 18.2 | % | ||||||||||||||||
(1) Includes the gain on disposal of $0.35 associated with the sale of certain third-party claims administration and adjusting services businesses sold in the fourth quarter of 2023.
See information regarding non-GAAP measures presented later in this press release.
| Reconciliation of Income Before Income Taxes to EBITDAC and | ||||||||||||||||
| EBITDAC - Adjusted and Income Before Income Taxes Margin(1) to | ||||||||||||||||
| EBITDAC Margin and EBITDAC Margin - Adjusted | ||||||||||||||||
| (in millions, unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended
December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Total revenues | $ | 1,184 | $ | 1,026 | $ | 4,805 | $ | 4,257 | ||||||||
| Income before income taxes | $ | 275 | $ | 356 | $ | 1,303 | $ | 1,146 | ||||||||
| Income Before Income Taxes Margin (1) | 23.2 | % | 34.7 | % | 27.1 | % | 26.9 | % | ||||||||
| Amortization | 48 | 43 | 178 | 166 | ||||||||||||
| Depreciation | 11 | 10 | 44 | 40 | ||||||||||||
| Interest | 46 | 47 | 193 | 190 | ||||||||||||
| Change in estimated acquisition earn-out payables | 11 | (9 | ) | 2 | 21 | |||||||||||
| EBITDAC | $ | 391 | $ | 447 | $ | 1,720 | $ | 1,563 | ||||||||
| EBITDAC Margin | 33.0 | % | 43.6 | % | 35.8 | % | 36.7 | % | ||||||||
| (Gain)/loss on disposal (2) | (1 | ) | (134 | ) | (31 | ) | (143 | ) | ||||||||
| Acquisition/Integration Costs | - | 5 | - | 13 | ||||||||||||
| 1Q23 Nonrecurring Cost | - | 11 | ||||||||||||||
| EBITDAC - Adjusted | $ | 390 | $ | 318 | $ | 1,689 | $ | 1,444 | ||||||||
| EBITDAC Margin - Adjusted | 32.9 | % | 31.0 | % | 35.2 | % | 33.9 | % | ||||||||
(1) "Income Before Income Taxes Margin” is defined as income before income taxes divided by total revenues.
(2) Includes the gain on disposal of $134.6 million associated with the sale of certain third-party claims administration and adjusting services businesses sold in the fourth quarter of 2023.
See information regarding non-GAAP measures presented later in this press release.
| Brown & Brown, Inc. | ||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||
| (in millions, except per share data; unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
