Brown & Brown, Inc. Announces Record Quarterly Net Income of $60.1 Million

Brown & Brown, Inc. Announces Record Quarterly Net Income of $60.1 Million 
DAYTONA BEACH, FL and TAMPA, FL -- (Marketwired) -- 04/15/13 -- 
Brown & Brown, Inc. (NYSE: BRO) today announced its preliminary,
unaudited financial results for the first quarter of 2013.  
Net income for the first quarter of 2013 was $60,131,000, or $0.41
per share, compared with $49,433,000, or $0.34 per share for the same
quarter of 2012, an increase of 21.6%. Total revenue for the first
quarter was $335,012,000, compared with 2012 first-quarter revenue of
$302,486,000, an increase of 10.8%.  
J. Powell Brown, President and Chief Executive Officer of the
Company, noted, "We are pleased to have surpassed a quarterly
milestone of $60 million of quarterly net income, and to have
achieved a quarterly internal growth rate of our core commissions and
fees revenue of 10.2%."  
Brown & Brown, Inc., through its subsidiaries, offers a broad range
of insurance and reinsurance products and services. Additionally,
certain Brown & Brown subsidiaries offer a variety of risk
management, third-party administration, and other services. Serving
business, public entity, individual, trade and professional
association clients nationwide, the Company is ranked by Business
Insurance magazine as the United States' sixth largest independent
insurance intermediary. The Company's Web address is
www.bbinsurance.com.  
This press release may contain certain statements relating to future
results which are forward-looking statements, including those
relating to the Company's anticipated financial results for the first
quarter of 2013. These statements are not historical facts, but
instead represent only the Company's current belief regarding future
events, many of which, by their nature, are inherently uncertain and
outside of the Company's control. It is possible that the Company's
actual results, financial condition and achievements may differ,
possibly materially, from the anticipated results, financial
condition and achievements contemplated by these forward-looking
statements. These risks and uncertainties include, but are not
limited to, the Company's determination as it finalizes its financial
results for the first quarter of 2013 that its financial results
differ from the current preliminary unaudited
 numbers set forth
herein, other factors that the Company may not have currently
identified or quantified, and other risks, relevant factors and
uncertainties identified in the Company's Annual Report on Form 10-K
for the year ended December 31, 2012, and the Company's other filings
with the Securities and Exchange Commission. All forward-looking
statements made herein are made only as of the date of this release,
and the Company does not undertake any obligation to publicly update
or correct any forward-looking statements to reflect events or
circumstances that subsequently occur or of which the Company
hereafter becomes aware.  


 
                                                                            
                            Brown & Brown, Inc.                             
                     CONSOLIDATED STATEMENTS OF INCOME                      
                   (in thousands, except per share data)                    
                                (unaudited)                                 
                                                            For the         
                                                       Three Months Ended   
                                                           March 31,        
                                                    ----------------------- 
                                                        2013        2012    
                                                    ----------- ----------- 
REVENUES                                                                    
Commissions and fees                                $   333,793 $   296,533 
Investment income                                           186         135 
Other income, net                                         1,033       5,818 
                                                    ----------- ----------- 
    Total revenues                                      335,012     302,486 
                                                    ----------- ----------- 
                                                                            
EXPENSES                                                                    
Employee compensation and benefits                      159,498     149,596 
Non-cash stock-based compensation                         3,850       3,747 
Other operating expenses                                 46,339      43,400 
Amortization                                             16,161      15,613 
Depreciation                                              4,167       3,641 
Interest                                                  3,984       4,087 
Change in estimated acquisition earn-out payables         1,522        (388)
                                                    ----------- ----------- 
    Total expenses                                      235,521     219,696 
                                                    ----------- ----------- 
                                                                            
Income before income taxes                               99,491      82,790 
                                                                            
Income taxes                                             39,360      33,357 
                                                    ----------- ----------- 
                                                                            
Net income                                          $    60,131 $    49,433 
                                                    =========== =========== 
                                                                            
Net income per share:                                                       
  Basic                                             $      0.42 $      0.34 
                                                    =========== =========== 
  Diluted                                           $      0.41 $      0.34 
                                                    =========== =========== 
                                                                            
Weighted average number of shares outstanding:                              
  Basic                                                 140,796     139,001 
                                                    =========== =========== 
  Diluted                                               142,947     141,500 
                                                    =========== =========== 
                                                                            
Dividends declared per share                        $     0.090 $    0.0850 
                                                    =========== =========== 
                                                                            
                                                                            
                            Brown & Brown, Inc.                             
                          INTERNAL GROWTH SCHEDULE                          
                    Core Organic Commissions and Fees(1)                    
                     Three Months Ended March 31, 2013                      
                               (in thousands)                               
                               
 (unaudited)                                 
                                                                            
                                                                            
                                        Total                               
              Quarter  Quarter  Total    Net      Less    Internal  Internal
               Ended    Ended    Net   Growth Acquisition    Net      Net   
             03/31/13 03/31/12  Change   %      Revenues  Growth $  Growth %
             -------- -------- ------- ------ ----------- -------- ---------
                                                                            
Retail(2)    $158,950 $149,971 $ 8,979   6.0% $     7,830 $  1,149      0.8%
                                                                            
National                                                                    
 Programs      61,706   53,630   8,076  15.1%       1,483    6,593     12.3%
                                                                            
Wholesale                                                                   
 Brokerage     43,271   38,366   4,905  12.8%       1,547    3,358      8.8%
                                                                            
Services       42,605   25,762  16,843  65.4%         657   16,186     62.8%
             -------- -------- -------        ----------- --------          
                                                                            
Total Core                                                                  
 Commissions                                                                
 and Fees                                                                   
 (1)         $306,532 $267,729 $38,803  14.5% $    11,517 $ 27,286     10.2%
             ======== ======== =======        =========== ========          
                                                                            
                                                                            
                 Reconciliation of Internal Growth Schedule                 
                        to Total Commissions and Fees                       
              Included in the Consolidated Statements of Income             
             For the Three Months Ended March 31, 2013 and 2012             
                               (in thousands)                               
                                 (unaudited)                                
                                                                            
                                                                            
                                                         Quarter    Quarter 
                                                          Ended      Ended  
                                                        03/31/13   03/31/12 
                                                       ---------- ----------
Total core commissions and fees(1)                     $  306,532 $  267,729
Profit-sharing contingent commissions                      25,039     24,221
Guaranteed supplemental commissions                         2,222      2,592
Divested business                                               -      1,991
                                                       ---------- ----------
                                                                            
Total commissions & fees                               $  333,793 $  296,533
                                                       ========== ==========
                                                                            
(1) Total core commissions and fees are our total commissions and fees less 
(i) profit-sharing contingent commissions (revenues derived from special    
revenue-sharing commissions from insurance companies based upon the volume  
and the growth and/or profitability of the business placed with such        
companies during the prior year), (ii) guaranteed supplemental commissions  
(GSC) (revenues derived from special revenue-sharing commissions from       
insurance companies based solely upon the volume of the business placed with
such companies during the current year), and (iii) divested business        
(commis
sions and fees generated from offices, books of business or niches   
sold by the Company or terminated).                                         
                                                                            
(2) The Retail segment includes commissions and fees reported in the "Other"
column of the Segment Information, which includes corporate and             
consolidation items.                                                        
                                                                            
                                                                            
                             Brown & Brown, Inc.                            
                         CONSOLIDATED BALANCE SHEETS                        
                    (in thousands, except per share data)                   
                                 (unaudited)                                
                                                                            
                                                     March 31,  December 31,
                                                       2013         2012    
                                                   ------------ ------------
ASSETS                                                                      
Current assets:                                                             
  Cash and cash equivalents                        $    340,206 $    219,821
  Restricted cash and investments                       186,768      164,564
  Short-term investments                                  7,228        8,183
  Premiums, commissions and fees receivable             303,882      302,725
  Deferred income taxes                                  16,041       24,408
  Other current assets                                   27,488       39,811
                                                   ------------ ------------
    Total current assets                                881,613      759,512
                                                                            
Fixed assets, net                                        73,067       74,337
Goodwill                                              1,709,279    1,711,514
Amortizable intangible assets, net                      550,689      566,538
Other assets                                             15,712       16,157
                                                   ------------ ------------
    Total assets                                   $  3,230,360 $  3,128,058
                                                   ============ ============
                                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Current liabilities:                                                        
  Premiums payable to insurance companies          $    443,290 $    406,704
  Premium deposits and credits due customers             25,343       32,867
  Accounts payable                                       63,303       48,524
  Accrued expenses and other liabilities                 85,285       79,593
  Current portion of long-term debt                          93           93
                                                   ------------ ------------
    Total current liabilities                           617,314      567,781
                                                                            
Long-term debt                                          450,000      450,000
                                                                            
Deferred income taxes, net                              244,883      237,630
                                                                            
Other liabilities                                        58,907       65,314
                                                                            
Shareholders' equity:                                                       
  Common stock, par value $0.10 per share;                                  
   authorized 280,000 shares; issued and                                    
   outstanding 143,990 at 2013 and 143,878 at 2012       14,399       14,388
  Additional paid-in capital                            340,606      335,872
  Retained earnings                                   1,504,251    1,457,073
                                                   ------------ ------------
  Total shareholders' equity                          1,859,256    1,807,333
                                                   ------------ ------------
                                                                            
  Total liabilities and shareholders' equity       $  3,230,360 $  3,128,058
                                                   ============ ============

  
Cory T. Walker
Chief Financial Officer
(386) 239-7250