x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended September 30, 2009
|
|
or
|
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from _____________ to ________________
|
Florida
|
59-0864469
|
|
(State or other jurisdiction of
|
(I.R.S. Employer Identification No.)
|
|
incorporation or organization)
|
||
220 South Ridgewood Avenue,
|
32114
|
|
Daytona Beach, FL
|
(Zip Code)
|
|
(Address of principal executive offices)
|
Large accelerated filer
x
|
Accelerated filer
o
|
|
Non-accelerated filer
o
|
(Do not check if a smaller reporting company)
|
Smaller reporting company
o
|
PAGE NO.
|
||||
4
|
||||
5
|
||||
6
|
||||
7
|
||||
17
|
||||
32
|
||||
32
|
||||
33
|
||||
33
|
||||
33
|
||||
34
|
●
|
Material adverse changes in economic conditions in the markets we serve and in the general economy;
|
●
|
Future regulatory actions and conditions in the states in which we conduct our business;
|
●
|
Competition from others in the insurance agency, wholesale brokerage, insurance programs and service business;
|
●
|
A significant portion of business written by Brown & Brown is for customers located in California, Florida, Indiana, Michigan, New Jersey, New York, Pennsylvania, Texas and Washington. Accordingly, the occurrence of adverse economic conditions, an adverse regulatory climate, or a disaster in any of these states could have a material
adverse effect on our business;
|
●
|
The integration of our operations with those of businesses or assets we have acquired or may acquire in the future and the failure to realize the expected benefits of such integration; and
|
●
|
Other risks and uncertainties as may be detailed from time to time in our public announcements and Securities and Exchange Commission (“SEC”) filings.
|
(in thousands, except per share data)
|
For the three months
ended September 30,
|
For the nine months
ended September 30,
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
REVENUES
|
||||||||||||||||
Commissions and fees
|
$
|
243,016
|
$
|
243,766
|
$
|
751,575
|
$
|
736,129
|
||||||||
Investment income
|
175
|
1,228
|
945
|
5,136
|
||||||||||||
Other income, net
|
575
|
2,035
|
1,195
|
4,199
|
||||||||||||
Total revenues
|
243,766
|
247,029
|
753,715
|
745,464
|
||||||||||||
EXPENSES
|
||||||||||||||||
Employee compensation and benefits
|
119,607
|
122,172
|
369,573
|
363,873
|
||||||||||||
Non-cash stock-based compensation
|
1,732
|
1,819
|
5,243
|
5,563
|
||||||||||||
Other operating expenses
|
35,523
|
36,405
|
107,007
|
101,993
|
||||||||||||
Amortization
|
12,468
|
12,281
|
37,372
|
34,789
|
||||||||||||
Depreciation
|
3,323
|
3,391
|
9,955
|
9,929
|
||||||||||||
Interest
|
3,622
|
3,867
|
10,888
|
11,045
|
||||||||||||
Total expenses
|
176,275
|
179,935
|
540,038
|
527,192
|
||||||||||||
Income before income taxes
|
67,491
|
67,094
|
213,677
|
218,272
|
||||||||||||
Income taxes
|
26,530
|
26,501
|
84,036
|
85,521
|
||||||||||||
Net income
|
$
|
40,961
|
$
|
40,593
|
$
|
129,641
|
$
|
132,751
|
||||||||
Net income per share:
|
||||||||||||||||
Basic
|
$
|
0.29
|
$
|
0.29
|
$
|
0.92
|
$
|
0.94
|
||||||||
Diluted
|
$
|
0.29
|
$
|
0.29
|
$
|
0.91
|
$
|
0.94
|
||||||||
Weighted average number of shares outstanding:
|
||||||||||||||||
Basic
|
137,279
|
136,409
|
137,052
|
136,157
|
||||||||||||
Diluted
|
137,671
|
136,941
|
137,403
|
136,718
|
||||||||||||
Dividends declared per share
|
$
|
0.075
|
$
|
0.07
|
$
|
0.225
|
$
|
0.21
|
(in thousands, except per share data)
|
September 30,
2009
|
December 31,
2008
|
||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
186,247
|
$
|
78,557
|
||||
Restricted cash and investments
|
158,843
|
144,750
|
||||||
Short-term investments
|
8,219
|
7,511
|
||||||
Premiums, commissions and fees receivable
|
238,525
|
244,515
|
||||||
Deferred income taxes
|
—
|
14,171
|
||||||
Other current assets
|
36,487
|
33,528
|
||||||
Total current assets
|
628,321
|
523,032
|
||||||
Fixed assets, net
|
62,324
|
63,520
|
||||||
Goodwill
|
1,063,357
|
1,023,372
|
||||||
Amortizable intangible assets, net
|
477,541
|
495,627
|
||||||
Other assets
|
6,579
|
14,029
|
||||||
Total assets
|
$
|
2,238,122
|
$
|
2,119,580
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Premiums payable to insurance companies
|
$
|
349,777
|
$
|
357,707
|
||||
Premium deposits and credits due customers
|
48,224
|
43,577
|
||||||
Accounts payable
|
14,987
|
18,872
|
||||||
Accrued expenses
|
83,493
|
96,325
|
||||||
Current portion of long-term debt
|
11,464
|
6,162
|
||||||
Total current liabilities
|
507,945
|
522,643
|
||||||
Long-term debt
|
250,589
|
253,616
|
||||||
Deferred income taxes, net
|
107,996
|
90,143
|
||||||
Other liabilities
|
16,898
|
11,437
|
||||||
Shareholders’ Equity:
|
||||||||
Common stock, par value $0.10 per share; authorized 280,000 shares; issued and outstanding 142,046 at 2009 and 141,544 at 2008
|
14,205
|
14,154
|
||||||
Additional paid-in capital
|
265,324
|
250,167
|
||||||
Retained earnings
|
1,075,161
|
977,407
|
||||||
Accumulated other comprehensive income, net of related income tax effect of $3 at 2009 and $8 at 2008
|
4
|
13
|
||||||
Total shareholders’ equity
|
1,354,694
|
1,241,741
|
||||||
Total liabilities and shareholders’ equity
|
$
|
2,238,122
|
$
|
2,119,580
|
For the nine months
ended September 30,
|
||||||||
(in thousands)
|
2009
|
2008
|
||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
129,641
|
$
|
132,751
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Amortization
|
37,372
|
34,789
|
||||||
Depreciation
|
9,955
|
9,929
|
||||||
Non-cash stock-based compensation
|
5,243
|
5,563
|
||||||
Deferred income taxes
|
32,029
|
33,750
|
||||||
Net loss (gain) on sales of investments, fixed assets and customer accounts
|
499
|
(235
|
)
|
|||||
Changes in operating assets and liabilities, net of effect from acquisitions and divestitures:
|
||||||||
Restricted cash and investments (increase) decrease
|
(14,093
|
)
|
13,788
|
|||||
Premiums, commissions and fees receivable decrease (increase)
|
7,633
|
(12,010
|
)
|
|||||
Other assets decrease
|
3,323
|
9,432
|
||||||
Premiums payable to insurance companies (decrease)
|
(8,916
|
)
|
(6,826
|
)
|
||||
Premium deposits and credits due customers increase
|
4,518
|
7,067
|
||||||
Accounts payable (decrease)
|
(3,830
|
)
|
(7,758
|
)
|
||||
Accrued expenses (decrease)
|
(13,346
|
)
|
(14,503
|
)
|
||||
Other liabilities (decrease)
|
(770
|
)
|
(1,672
|
)
|
||||
Net cash provided by operating activities
|
189,258
|
204,065
|
||||||
Cash flows from investing activities:
|
||||||||
Additions to fixed assets
|
(8,734
|
)
|
(11,115
|
)
|
||||
Payments for businesses acquired, net of cash acquired
|
(42,272
|
)
|
(221,616
|
)
|
||||
Proceeds from sales of fixed assets and customer accounts
|
886
|
3,881
|
||||||
Purchases of investments
|
(5,601
|
)
|
(7,874
|
)
|
||||
Proceeds from sales of investments
|
4,879
|
4,080
|
||||||
Net cash used in investing activities
|
(50,842
|
)
|
(232,644
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from long-term debt
|
—
|
25,000
|
||||||
Payments on long-term debt
|
(8,804
|
)
|
(15,672
|
)
|
||||
Borrowings on revolving credit facility
|
12,670
|
2,180
|
||||||
Payments on revolving credit facility
|
(12,670
|
)
|
(2,180
|
)
|
||||
Income tax benefit from exercise of stock options
|
110
|
—
|
||||||
Issuances of common stock for employee stock benefit plans
|
9,855
|
10,611
|
||||||
Cash dividends paid
|
(31,887
|
)
|
(29,594
|
)
|
||||
Net cash used in financing activities
|
(30,726
|
)
|
(9,655
|
)
|
||||
Net increase (decrease) in cash and cash equivalents
|
107,690
|
(38,234
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
78,557
|
38,234
|
||||||
Cash and cash equivalents at end of period
|
$
|
186,247
|
$
|
-
|
For the three months
ended September 30,
|
For the nine months
ended September 30,
|
|||||||||||||||
(
in thousands, except per share data)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Net income
|
$
|
40,961
|
$
|
40,593
|
$
|
129,641
|
$
|
132,751
|
||||||||
Net income attributable to unvested awarded performance stock
|
(1,310
|
)
|
(1,342
|
)
|
(4,194
|
)
|
(4,409
|
)
|
||||||||
Net income attributable to common shares
|
$
|
39,651
|
$
|
39,251
|
$$
|
125,447
|
$
|
128,342
|
||||||||
Weighted average basic number of common shares outstanding
|
141,817
|
141,073
|
141,634
|
140,834
|
||||||||||||
Less unvested awarded performance stock included in weighted average basic share outstanding
|
(4,538
|
)
|
(4,664
|
)
|
(4,582
|
)
|
(4,677
|
)
|
||||||||
Weighted average number of common shares outstanding for basic earning per common share
|
137,279
|
136,409
|
137,052
|
136,157
|
||||||||||||
Dilutive effect of stock options
|
392
|
532
|
351
|
561
|
||||||||||||
Weighted average number of shares outstanding
|
137,671
|
136,941
|
137,403
|
136,718
|
||||||||||||
Net income per share:
|
||||||||||||||||
Basic
|
$
|
0.29
|
$
|
0.29
|
$
|
0.92
|
$
|
0.94
|
||||||||
Diluted
|
$
|
0.29
|
$
|
0.29
|
$
|
0.91
|
$
|
0.94
|
(in thousands)
Name
|
Business
Segment
|
2009
Date of
Acquisition
|
Net
Cash
Paid
|
Note
Payable
|
Recorded
Earn-out
Payable
|
Recorded
Purchase
Price
|
Maximum
Potential
Earn-out
Payable
|
|||||||||||||
Conner Strong Companies, Inc.
|
Retail
|
January 2
|
$
|
22,748
|
$
|
—
|
$
|
—
|
$
|
22,748
|
$
|
—
|
||||||||
Other
|
Various
|
Various
|
16,032
|
340
|
6,261
|
22,633
|
13,169
|
|||||||||||||
Total
|
$
|
38,780
|
$
|
340
|
$
|
6,261
|
$
|
45,381
|
$
|
13,169
|
(in thousands)
|
Conner
Strong
|
Other
|
Total
|
|||||||||
Fiduciary cash
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||
Other current assets
|
556
|
1,087
|
1,643
|
|||||||||
Fixed assets
|
52
|
122
|
174
|
|||||||||
Goodwill
|
13,591
|
12,218
|
25,809
|
|||||||||
Purchased customer accounts
|
8,698
|
10,531
|
19,229
|
|||||||||
Noncompete agreements
|
—
|
103
|
103
|
|||||||||
Other assets
|
—
|
(2
|
)
|
(2
|
)
|
|||||||
Total assets acquired
|
22,897
|
24,059
|
46,956
|
|||||||||
Other current liabilities
|
(149
|
)
|
(1,426
|
)
|
(1,575
|
)
|
||||||
Total liabilities assumed
|
(149
|
)
|
(1,426
|
)
|
(1,575
|
)
|
||||||
Net assets acquired
|
$
|
22,748
|
$
|
22,633
|
$
|
45,381
|
For the three months
ended September 30,
|
For the nine months
ended September 30,
|
|||||||||||||||
(in thousands, except per share data)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Total revenues
|
$
|
244,067
|
$
|
252,505
|
$
|
757,921
|
$
|
761,460
|
||||||||
Income before income taxes
|
67,607
|
68,916
|
215,112
|
223,623
|
||||||||||||
Net income
|
41,031
|
41,695
|
130,512
|
136,006
|
||||||||||||
Net income per share:
|
||||||||||||||||
Basic
|
$
|
0.29
|
$
|
0.30
|
$
|
0.92
|
$
|
0.97
|
||||||||
Diluted
|
$
|
0.29
|
$
|
0.29
|
$
|
0.92
|
$
|
0.96
|
||||||||
Weighted average number of shares outstanding:
|
||||||||||||||||
Basic
|
137,279
|
136,409
|
137,052
|
136,157
|
||||||||||||
Diluted
|
137,671
|
136,941
|
137,403
|
136,718
|
(in thousands)
Name
|
Business
Segment
|
2008
Date of
Acquisition
|
Net
Cash
Paid
|
Notes
Payable
|
Recorded
Purchase
Price
|
|||||||||||
LDP Consulting Group, Inc.
|
Retail
|
January 24
|
39,241
|
-
|
39,241
|
|||||||||||
Powers & Effler Insurance Brokers
|
Retail
|
April 1
|
25,036
|
-
|
25,036
|
|||||||||||
HBA Insurance Group, Inc.
|
Retail
|
June 1
|
48,306
|
2,000
|
50,306
|
|||||||||||
Fullerton & Company, Inc.
|
Retail
|
August 1
|
17,399
|
-
|
17,399
|
|||||||||||
Other
|
Various
|
Various
|
85,144
|
3,213
|
88,357
|
|||||||||||
Total
|
$
|
215,126
|
$
|
5,213
|
$
|
220,339
|
(in thousands)
|
LDP
|
Powers
|
HBA
|
Fullerton
|
Other
|
Total
|
||||||||||||||||||
Fiduciary cash
|
$
|
173
|
$
|
-
|
$
|
-
|
$
|
1,541
|
$
|
-
|
$
|
1,714
|
||||||||||||
Other current assets
|
1,121
|
75
|
-
|
1,242
|
1,804
|
4,242
|
||||||||||||||||||
Fixed assets
|
19
|
353
|
652
|
41
|
504
|
1,569
|
||||||||||||||||||
Goodwill
|
21,857
|
17,227
|
35,158
|
15,029
|
49,128
|
138,399
|
||||||||||||||||||
Purchased customer accounts
|
21,225
|
7,545
|
14,390
|
5,105
|
38,421
|
86,686
|
||||||||||||||||||
Noncompete agreements
|
55
|
11
|
141
|
80
|
420
|
707
|
||||||||||||||||||
Other assets
|
11
|
-
|
-
|
644
|
16
|
671
|
||||||||||||||||||
Total assets acquired
|
44,461
|
25,211
|
50,341
|
23,682
|
90,293
|
233,988
|
||||||||||||||||||
Other current liabilities
|
(5,220
|
)
|
(175
|
)
|
(35
|
)
|
(4,589
|
)
|
(1,936
|
)
|
(11,955
|
)
|
||||||||||||
Deferred income taxes
|
-
|
-
|
-
|
(1,694
|
)
|
-
|
(1,694
|
)
|
||||||||||||||||
Total liabilities assumed
|
(5,220
|
)
|
(175
|
)
|
(35
|
)
|
(6,283
|
)
|
(1,936
|
)
|
(13,649
|
)
|
||||||||||||
Net assets acquired
|
$
|
39,241
|
$
|
25,036
|
$
|
50,306
|
$
|
17,399
|
$
|
88,357
|
$
|
220,339
|
For the three months
|
For the nine months
|
|||||||||||||||
ended September 30,
|
ended September 30,
|
|||||||||||||||
(in thousands, except per share data)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Total revenues
|
$
|
248,448
|
$
|
260,223
|
$
|
775,833
|
$
|
813,676
|
||||||||
Income before income taxes
|
67,561
|
83,081
|
228,296
|
281,641
|
||||||||||||
Net income
|
40,875
|
50,901
|
138,847
|
172,408
|
||||||||||||
Net income per share:
|
||||||||||||||||
Basic
|
$
|
0.29
|
$
|
0.36
|
$
|
0.99
|
$
|
1.23
|
||||||||
Diluted
|
$
|
0.29
|
$
|
0.36
|
$
|
0.98
|
$
|
1.22
|
||||||||
Weighted average number of shares outstanding:
|
||||||||||||||||
Basic
|
136,409
|
135,728
|
136,157
|
135,455
|
||||||||||||
Diluted
|
136,941
|
136,423
|
136,718
|
136,263
|
(in thousands)
|
Retail
|
Wholesale
Brokerage
|
National
Programs
|
Services
|
Total
|
|||||||||||||||
Balance as of January 1, 2009
|
$
|
620,588
|
$
|
246,216
|
$
|
147,298
|
$
|
9,270
|
$
|
1,023,372
|
||||||||||
Goodwill of acquired businesses
|
27,255
|
8,241
|
4,489
|
—
|
39,985
|
|||||||||||||||
Goodwill disposed of relating to sales of businesses
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Balance as of September 30, 2009
|
$
|
647,843
|
$
|
254,457
|
$
|
151,787
|
$
|
9,270
|
$
|
1,063,357
|
September 30, 2009
|
December 31, 2008
|
||||||||||||||||||||||||||||||||
(in thousands)
|
Gross
Carrying
Value
|
Accumulated
Amortization
|
Net
Carrying
Value
|
Weighted
Average
Life
(years)
|
Gross
Carrying
Value
|
Accumulated
Amortization
|
Net
Carrying
Value
|
Weighted
Average
Life
(years)
|
|||||||||||||||||||||||||
Purchased customer accounts
|
$
|
744,044
|
$
|
(268,232
|
)
|
$
|
475,812
|
14.9
|
$
|
724,953
|
$
|
(231,748
|
)
|
$
|
493,205
|
14.9
|
|||||||||||||||||
Noncompete agreements
|
24,589
|
(22,860
|
)
|
1,729
|
7.3
|
24,455
|
(22,033
|
)
|
2,422
|
7.3
|
|||||||||||||||||||||||
Total
|
$
|
768,633
|
$
|
(291,092
|
)
|
$
|
477,541
|
$
|
749,408
|
$
|
(253,781
|
)
|
$
|
495,627
|
September 30, 2009
|
December 31, 2008
|
|||||||||||||||
Carrying Value
|
Carrying Value
|
|||||||||||||||
(in thousands)
|
Current
|
Non-
Current
|
Current
|
Non-
Current
|
||||||||||||
Available-for-sale marketable equity securities
|
$
|
32
|
$
|
—
|
$
|
46
|
$
|
—
|
||||||||
Non-marketable equity securities and certificates of deposit
|
8,187
|
115
|
7,465
|
287
|
||||||||||||
Total investments
|
$
|
8,219
|
$
|
115
|
$
|
7,511
|
$
|
287
|
(in thousands)
|
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
||||||||||||
Marketable equity securities:
|
||||||||||||||||
September 30, 2009
|
$
|
25
|
$
|
7
|
$
|
—
|
$
|
32
|
||||||||
December 31, 2008
|
$
|
25
|
$
|
21
|
$
|
—
|
$
|
46
|
(in thousands)
|
Proceeds
|
Gross
Realized
Gains
|
Gross
Realized
Losses
|
|||||||||
For the three months ended:
|
||||||||||||
September 30, 2009
|
$
|
781
|
$
|
—
|
$
|
(207
|
)
|
|||||
September 30, 2008
|
$
|
3,269
|
$
|
—
|
$
|
—
|
||||||
For the nine months ended:
|
||||||||||||
September 30, 2009
|
$
|
4,879
|
$
|
—
|
$
|
(207
|
)
|
|||||
September 30, 2008
|
$
|
3,976
|
$
|
542
|
$
|
(9
|
)
|
September 30,
|
December 31,
|
|||||||
(in thousands)
|
2009
|
2008
|
||||||
Unsecured senior notes
|
$
|
250,000
|
$
|
250,000
|
||||
Acquisition notes payable
|
11,996
|
9,665
|
||||||
Revolving credit facility
|
—
|
—
|
||||||
Other notes payable
|
57
|
113
|
||||||
Total debt
|
262,053
|
259,778
|
||||||
Less current portion
|
(11,464
|
)
|
(6,162
|
)
|
||||
Long-term debt
|
$
|
250,589
|
$
|
253,616
|
For the nine months
ended September 30,
|
||||||||
(in thousands)
|
2009
|
2008
|
||||||
Cash paid during the period for:
|
||||||||
Interest
|
$
|
13,494
|
$
|
13,332
|
||||
Income taxes
|
$
|
56,889
|
$
|
48,624
|
For the three months
ended September 30,
|
For the nine months
ended September 30,
|
|||||||||||||||
(in thousands)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Net income
|
$
|
40,961
|
$
|
40,593
|
$
|
129,641
|
$
|
132,751
|
||||||||
Net unrealized holding gain (loss) on available-for-sale securities
|
4
|
5
|
(9
|
)
|
-
|
|||||||||||
Comprehensive income
|
$
|
40,965
|
$
|
40,598
|
$
|
129,632
|
$
|
132,751
|
For the nine months ended September 30, 2009
|
||||||||||||||||||||||||||
(in thousands)
|
Retail
|
Wholesale
Brokerage
|
National
Programs
|
Services
|
Other
|
Total
|
||||||||||||||||||||
Total revenues
|
$
|
451,966
|
$
|
126,517
|
$
|
148,656
|
$
|
24,655
|
$
|
1,921
|
$
|
753,715
|
||||||||||||||
Investment income
|
221
|
56
|
3
|
18
|
647
|
945
|
||||||||||||||||||||
Amortization
|
22,448
|
7,679
|
6,870
|
346
|
29
|
37,372
|
||||||||||||||||||||
Depreciation
|
4,567
|
2,164
|
2,030
|
263
|
931
|
9,955
|
||||||||||||||||||||
Interest
|
24,214
|
10,932
|
4,209
|
514
|
(28,981
|
)
|
10,888
|
|||||||||||||||||||
Income before income taxes
|
101,257
|
18,587
|
58,575
|
5,483
|
29,775
|
213,677
|
||||||||||||||||||||
Total assets
|
1,754,160
|
618,801
|
697,402
|
46,396
|
(878,637
|
)
|
2,238,122
|
|||||||||||||||||||
Capital expenditures
|
2,722
|
2,538
|
3,238
|
120
|
116
|
8,734
|
For the nine months ended September 30, 2008
|
|||||||||||||||||||||||||
(in thousands)
|
Retail
|
Wholesale
Brokerage
|
National
Programs
|
Services
|
Other
|
Total
|
|||||||||||||||||||
Total revenues
|
$
|
450,959
|
$
|
137,469
|
$
|
128,141
|
$
|
23,831
|
$
|
5,064
|
$
|
745,464
|
|||||||||||||
Investment income
|
878
|
1,223
|
263
|
6
|
2,766
|
5,136
|
|||||||||||||||||||
Amortization
|
19,943
|
7,646
|
6,825
|
346
|
29
|
34,789
|
|||||||||||||||||||
Depreciation
|
4,518
|
2,169
|
2,017
|
317
|
908
|
9,929
|
|||||||||||||||||||
Interest
|
21,864
|
13,756
|
5,890
|
559
|
(31,024
|
)
|
11,045
|
||||||||||||||||||
Income before income taxes
|
115,229
|
19,634
|
42,565
|
5,346
|
35,498
|
218,272
|
|||||||||||||||||||
Total assets
|
1,636,519
|
629,145
|
615,028
|
43,238
|
(816,629
|
)
|
2,107,301
|
||||||||||||||||||
Capital expenditures
|
3,218
|
4,148
|
1,980
|
160
|
1,609
|
11,115
|
For the three months
ended September 30,
|
For the nine months
ended September 30,
|
|||||||||||||||||||||||||
2009
|
2008
|
%
Change
|
2009
|
2008
|
%
Change
|
|||||||||||||||||||||
REVENUES
|
||||||||||||||||||||||||||
Commissions and fees
|
$
|
232,595
|
$
|
234,036
|
(0.6
|
)%
|
$
|
704,422
|
$
|
684,640
|
2.9
|
%
|
||||||||||||||
Profit-sharing contingent commissions
|
10,421
|
9,730
|
7.1
|
%
|
47,153
|
51,489
|
(8.4
|
)%
|
||||||||||||||||||
Investment income
|
175
|
1,228
|
(85.7
|
)%
|
945
|
5,136
|
(81.6
|
)%
|
||||||||||||||||||
Other income, net
|
575
|
2,035
|
(71.1
|
)%
|
1,195
|
4,199
|
(71.5
|
)%
|
||||||||||||||||||
Total revenues
|
243,766
|
247,029
|
(1.3
|
)%
|
753,715
|
745,464
|
1.1
|
%
|
||||||||||||||||||
EXPENSES
|
||||||||||||||||||||||||||
Employee compensation and benefits
|
119,607
|
122,172
|
(2.1
|
)%
|
369,573
|
363,873
|
1.6
|
%
|
||||||||||||||||||
Non-cash stock-based compensation
|
1,732
|
1,819
|
(4.8
|
)%
|
5,243
|
5,563
|
(5.8
|
)%
|
||||||||||||||||||
Other operating expenses
|
35,523
|
36,405
|
(2.4
|
)%
|
107,007
|
101,993
|
4.9
|
%
|
||||||||||||||||||
Amortization
|
12,468
|
12,281
|
1.5
|
%
|
37,372
|
34,789
|
7.4
|
%
|
||||||||||||||||||
Depreciation
|
3,323
|
3,391
|
(2.0
|
)%
|
9,955
|
9,929
|
0.3
|
%
|
||||||||||||||||||
Interest
|
3,622
|
3,867
|
(6.3
|
)%
|
10,888
|
11,045
|
(1.4
|
)%
|
||||||||||||||||||
Total expenses
|
176,275
|
179,935
|
(2.0
|
)%
|
540,038
|
527,192
|
2.4
|
%
|
||||||||||||||||||
Income before income taxes
|
67,491
|
67,094
|
0.6
|
%
|
213,677
|
218,272
|
(2.1
|
)%
|
||||||||||||||||||
Income taxes
|
26,530
|
26,501
|
0.1
|
%
|
84,036
|
85,521
|
(1.7
|
)%
|
||||||||||||||||||
NET INCOME
|
$
|
40,961
|
$
|
40,593
|
0.9
|
%
|
$
|
129,641
|
$
|
132,751
|
(2.3
|
)%
|
||||||||||||||
Net internal growth rate – core commissions and fees
|
(5.2
|
)%
|
(5.1
|
)%
|
(4.1
|
)%
|
(5.8
|
)%
|
||||||||||||||||||
Employee compensation and benefits ratio
|
49.1
|
%
|
49.5
|
%
|
49.0
|
%
|
48.8
|
%
|
||||||||||||||||||
Other operating expenses ratio
|
14.6
|
%
|
14.7
|
%
|
14.2
|
%
|
13.7
|
%
|
||||||||||||||||||
Capital expenditures
|
$
|
2,472
|
$
|
2,921
|
$
|
8,734
|
$
|
11,115
|
||||||||||||||||||
Total assets at September 30, 2009 and 2008
|
$
|
2,238,122
|
$
|
2,107,301
|
2009
|
For the three months
ended September 30,
|
||||||||||||||||||||||||||||
2009
|
2008
|
Total Net
Change
|
Total Net
Growth %
|
Less
Acquisition
Revenues
|
Internal
Net
Growth $
|
Internal
Net
Growth %
|
|||||||||||||||||||||||
Florida Retail
|
$
|
35,008
|
$
|
40,025
|
$
|
(5,017
|
)
|
(12.5
|
)%
|
$
|
—
|
$
|
(5,017
|
)
|
(12.5
|
)%
|
|||||||||||||
National Retail
|
80,962
|
77,217
|
3,745
|
4.8
|
%
|
7,394
|
(3,649
|
)
|
(4.7
|
)%
|
|||||||||||||||||||
Western Retail
|
26,279
|
26,774
|
(495
|
)
|
(1.8
|
)%
|
2,725
|
(3,220
|
)
|
(12.0
|
)%
|
||||||||||||||||||
Total Retail
(1)
|
142,249
|
144,016
|
(1,767
|
)
|
(1.2
|
)%
|
10,119
|
(11,886
|
)
|
(8.3
|
)%
|
||||||||||||||||||
Wholesale Brokerage
|
34,809
|
36,491
|
(1,682
|
)
|
(4.6
|
)%
|
277
|
(1,959
|
)
|
(5.4
|
)%
|
||||||||||||||||||
Professional Programs
|
12,451
|
11,582
|
869
|
7.5
|
%
|
—
|
869
|
7.5
|
%
|
||||||||||||||||||||
Special Programs
|
34,790
|
33,433
|
1,357
|
4.1
|
%
|
892
|
465
|
1.4
|
%
|
||||||||||||||||||||
Total National Programs
|
47,241
|
45,015
|
2,226
|
4.9
|
%
|
892
|
1,334
|
3.0
|
%
|
||||||||||||||||||||
Services
|
8,296
|
7,917
|
379
|
4.8
|
%
|
—
|
379
|
4.8
|
%
|
||||||||||||||||||||
Total Core Commissions and Fees
|
$
|
232,595
|
$
|
233,439
|
$
|
(844
|
)
|
(0.4
|
)%
|
$
|
11,288
|
$
|
(12,132
|
)
|
(5.2
|
)%
|
(1)
|
The Retail segment includes commissions and fees reported in the “Other” column of the Segment Information in Note 13 which includes corporate and consolidation items.
|
For the three months
ended September 30,
|
|||||||||
2009
|
2008
|
||||||||
Total core commissions and fees
|
$
|
232,595
|
$
|
233,439
|
|||||
Profit-sharing contingent commissions
|
10,421
|
9,730
|
|||||||
Divested business
|
—
|
597
|
|||||||
Total commission and fees
|
$
|
243,016
|
$
|
243,766
|
2008
|
For the three months
ended September 30,
|
|||||||||||||||||||||||||||
2008
|
2007
|
Total Net
Change
|
Total Net
Growth %
|
Less
Acquisition
Revenues
|
Internal
Net
Growth $
|
Internal
Net
Growth %
|
||||||||||||||||||||||
Florida Retail
|
$
|
40,087
|
$
|
39,088
|
$
|
999
|
2.6
|
%
|
$
|
4,620
|
$
|
(3,621
|
)
|
(9.3
|
)%
|
|||||||||||||
National Retail
|
77,172
|
60,958
|
16,214
|
26.6
|
%
|
16,802
|
(588
|
)
|
(1.0
|
)%
|
||||||||||||||||||
Western Retail
|
27,293
|
23,752
|
3,541
|
14.9
|
%
|
5,473
|
(1,932
|
)
|
(8.1
|
)%
|
||||||||||||||||||
Total Retail
(1)
|
144,552
|
123,798
|
20,754
|
16.8
|
%
|
26,895
|
(6,141
|
)
|
(5.0
|
)%
|
||||||||||||||||||
Wholesale Brokerage
|
36,491
|
39,328
|
(2,837
|
)
|
(7.2
|
)%
|
3,831
|
(6,668
|
)
|
(17.0
|
)%
|
|||||||||||||||||
Professional Programs
|
11,643
|
11,200
|
443
|
4.0
|
%
|
-
|
443
|
4.0
|
%
|
|||||||||||||||||||
Special Programs
|
33,433
|
30,411
|
3,022
|
9.9
|
%
|
210
|
2,812
|
9.2
|
%
|
|||||||||||||||||||
Total National Programs
|
45,076
|
41,611
|
3,465
|
8.3
|
%
|
210
|
3,255
|
7.8
|
%
|
|||||||||||||||||||
Services
|
7,917
|
9,390
|
(1,473
|
)
|
(15.7
|
)%
|
-
|
(1,473
|
)
|
(15.7
|
)%
|
|||||||||||||||||
Total Core Commissions and Fees
|
$
|
234,036
|
$
|
214,127
|
$
|
19,909
|
9.3
|
%
|
$
|
30,936
|
$
|
(11,027
|
)
|
(5.1
|
)%
|
(1)
|
The Retail segment includes commissions and fees reported in the “Other” column of the Segment Information in Note 13 which includes corporate and consolidation items.
|
For the three months
ended September 30,
|
|||||||||
2008
|
2007
|
||||||||
Total core commissions and fees
|
$
|
234,036
|
$
|
214,127
|
|||||
Profit-sharing contingent commissions
|
9,730
|
8,875
|
|||||||
Divested business
|
—
|
2,419
|
|||||||
Total commission and fees
|
$
|
243,766
|
$
|
225,421
|
2009
|
For the nine months
ended September 30,
|
|||||||||||||||||||||||||||
2009
|
2008
|
Total Net
Change
|
Total Net
Growth %
|
Less
Acquisition
Revenues
|
Internal
Net
Growth $
|
Internal
Net
Growth %
|
||||||||||||||||||||||
Florida Retail
|
$
|
119,130
|
$
|
126,586
|
$
|
(7,456
|
)
|
(5.9
|
)%
|
$
|
6,203
|
$
|
(13,659
|
)
|
(10.8
|
)%
|
||||||||||||
National Retail
|
237,346
|
220,976
|
16,370
|
7.4
|
%
|
28,182
|
(11,812
|
)
|
(5.3
|
)%
|
||||||||||||||||||
Western Retail
|
76,218
|
71,549
|
4,669
|
6.5
|
%
|
14,758
|
(10,089
|
)
|
(14.1
|
)%
|
||||||||||||||||||
Total Retail
(1)
|
432,694
|
419,111
|
13,583
|
3.2
|
%
|
49,143
|
(35,560
|
)
|
(8.5
|
)%
|
||||||||||||||||||
Wholesale Brokerage
|
110,680
|
117,739
|
(7,059
|
)
|
(6.0
|
)%
|
1,359
|
(8,418
|
)
|
(7.1
|
)%
|
|||||||||||||||||
Professional Programs
|
32,554
|
31,162
|
1,392
|
4.5
|
%
|
—
|
1,392
|
4.5
|
%
|
|||||||||||||||||||
Special Programs
|
103,854
|
88,645
|
15,209
|
17.2
|
%
|
1,206
|
14,003
|
15.8
|
%
|
|||||||||||||||||||
Total National Programs
|
136,408
|
119,807
|
16,601
|
13.9
|
%
|
1,206
|
15,395
|
12.8
|
%
|
|||||||||||||||||||
Services
|
24,640
|
23,832
|
808
|
3.4
|
%
|
—
|
808
|
3.4
|
%
|
|||||||||||||||||||
Total Core Commissions and Fees
|
$
|
704,422
|
$
|
680,489
|
$
|
23,933
|
3.5
|
%
|
$
|
51,708
|
$
|
(27,775
|
)
|
(4.1
|
)%
|
(1)
|
The Retail segment includes commissions and fees reported in the “Other” column of the Segment Information in Note 13 which includes corporate and consolidation items.
|
For the nine months
ended September 30,
|
|||||||||
2009
|
2008
|
||||||||
Total core commissions and fees
|
$
|
704,422
|
$
|
680,489
|
|||||
Profit-sharing contingent commissions
|
47,153
|
51,489
|
|||||||
Divested business
|
—
|
4,151
|
|||||||
Total commission and fees
|
$
|
751,575
|
$
|
736,129
|
2008
|
For the nine months
ended September 30,
|
|||||||||||||||||||||||||||
2008
|
2007
|
Total Net
Change
|
Total Net
Growth %
|
Less
Acquisition
Revenues
|
Internal
Net
Growth $
|
Internal
Net
Growth %
|
||||||||||||||||||||||
Florida Retail
|
$
|
127,528
|
$
|
133,837
|
$
|
(6,309
|
)
|
(4.7
|
)%
|
$
|
8,368
|
$
|
(14,677
|
)
|
(11.0
|
)%
|
||||||||||||
National Retail
|
221,777
|
176,506
|
45,271
|
25.6
|
%
|
51,037
|
(5,766
|
)
|
(3.3
|
)%
|
||||||||||||||||||
Western Retail
|
73,585
|
70,076
|
3,509
|
5.0
|
%
|
9,322
|
(5,813
|
)
|
(8.3
|
)%
|
||||||||||||||||||
Total Retail
(1)
|
422,890
|
380,419
|
42,471
|
11.2
|
%
|
68,727
|
(26,256
|
)
|
(6.9
|
)%
|
||||||||||||||||||
Wholesale Brokerage
|
117,892
|
121,964
|
(4,072
|
)
|
(3.3
|
)%
|
14,104
|
(18,176
|
)
|
(14.9
|
)%
|
|||||||||||||||||
Professional Programs
|
31,381
|
30,718
|
663
|
2.2
|
%
|
-
|
663
|
2.2
|
%
|
|||||||||||||||||||
Special Programs
|
88,645
|
77,494
|
11,151
|
14.4
|
%
|
488
|
10,663
|
13.8
|
%
|
|||||||||||||||||||
Total National Programs
|
120,026
|
108,212
|
11,814
|
10.9
|
%
|
488
|
11,326
|
10.5
|
%
|
|||||||||||||||||||
Services
|
23,832
|
27,528
|
(3,696
|
)
|
(13.4
|
)%
|
-
|
(3,696
|
)
|
(13.4
|
)%
|
|||||||||||||||||
Total Core Commissions and Fees
|
$
|
684,640
|
$
|
638,123
|
$
|
46,517
|
7.3
|
%
|
$
|
83,319
|
$
|
(36,802
|
)
|
(5.8
|
)%
|
(1)
|
The Retail segment includes commissions and fees reported in the “Other” column of the Segment Information in Note 13 which includes corporate and consolidation items.
|
For the nine months
ended September 30,
|
|||||||||
2008
|
2007
|
||||||||
Total core commissions and fees
|
$
|
684,640
|
$
|
638,123
|
|||||
Profit-sharing contingent commissions
|
51,489
|
55,678
|
|||||||
Divested business
|
—
|
7,655
|
|||||||
Total commission and fees
|
$
|
736,129
|
$
|
701,456
|
For the three months
ended September 30,
|
For the nine months
ended September 30,
|
|||||||||||||||||||||||
2009
|
2008
|
%
Change
|
2009
|
2008
|
%
Change
|
|||||||||||||||||||
REVENUES
|
||||||||||||||||||||||||
Commissions and fees
|
$
|
142,199
|
$
|
144,909
|
(1.9
|
)%
|
$
|
431,921
|
$
|
422,599
|
2.2
|
%
|
||||||||||||
Profit-sharing contingent commissions
|
2,198
|
1,795
|
22.5
|
%
|
19,632
|
25,704
|
(23.6
|
)%
|
||||||||||||||||
Investment income
|
69
|
129
|
(46.5
|
)%
|
221
|
878
|
(74.8
|
)%
|
||||||||||||||||
Other income (loss), net
|
337
|
(330
|
)
|
(202.1
|
)%
|
192
|
1,778
|
(89.2
|
)%
|
|||||||||||||||
Total revenues
|
144,803
|
146,503
|
(1.2
|
)%
|
451,966
|
450,959
|
0.2
|
%
|
||||||||||||||||
EXPENSES
|
||||||||||||||||||||||||
Employee compensation and benefits
|
72,045
|
73,604
|
(2.1
|
)%
|
222,605
|
217,961
|
2.1
|
%
|
||||||||||||||||
Non-cash stock-based compensation
|
1,164
|
900
|
29.3
|
%
|
3,533
|
2,719
|
29.9
|
%
|
||||||||||||||||
Other operating expenses
|
23,548
|
22,310
|
5.5
|
%
|
73,342
|
68,725
|
6.7
|
%
|
||||||||||||||||
Amortization
|
7,473
|
7,268
|
2.8
|
%
|
22,448
|
19,943
|
12.6
|
%
|
||||||||||||||||
Depreciation
|
1,506
|
1,559
|
(3.4
|
)%
|
4,567
|
4,518
|
1.1
|
%
|
||||||||||||||||
Interest
|
7,703
|
8,285
|
(7.0
|
)%
|
24,214
|
21,864
|
10.7
|
%
|
||||||||||||||||
Total expenses
|
113,439
|
113,926
|
(0.4
|
)%
|
350,709
|
335,730
|
4.5
|
%
|
||||||||||||||||
Income before income taxes
|
$
|
31,364
|
$
|
32,577
|
(3.7
|
)%
|
$
|
101,257
|
$
|
115,229
|
(12.1
|
)%
|
||||||||||||
Net internal growth rate – core commissions and fees
|
(8.3
|
)%
|
(5.0
|
)%
|
(8.5
|
)%
|
(6.9
|
)%
|
||||||||||||||||
Employee compensation and benefits ratio
|
49.8
|
%
|
50.2
|
%
|
49.3
|
%
|
48.3
|
%
|
||||||||||||||||
Other operating expenses ratio
|
16.3
|
%
|
15.2
|
%
|
16.2
|
%
|
15.2
|
%
|
||||||||||||||||
Capital expenditures
|
$
|
621
|
$
|
1,061
|
$
|
2,722
|
$
|
3,218
|
||||||||||||||||
Total assets at September 30, 2009 and 2008
|
$
|
1,754,160
|
$
|
1,636,519
|
For the three months
ended September 30,
|
For the nine months
ended September 30,
|
|||||||||||||||||||||||
2009
|
2008
|
%
Change
|
2009
|
2008
|
%
Change
|
|||||||||||||||||||
REVENUES
|
||||||||||||||||||||||||
Commissions and fees
|
$
|
34,809
|
$
|
36,491
|
(4.6
|
)%
|
$
|
110,680
|
$
|
117,892
|
(6.1
|
)%
|
||||||||||||
Profit-sharing contingent commissions
|
8,130
|
7,833
|
3.8
|
%
|
15,284
|
17,969
|
(14.9
|
)%
|
||||||||||||||||
Investment income
|
9
|
399
|
(97.7
|
)%
|
56
|
1,223
|
(95.4
|
)%
|
||||||||||||||||
Other income, net
|
128
|
64
|
100.0
|
%
|
497
|
385
|
29.1
|
%
|
||||||||||||||||
Total revenues
|
43,076
|
44,787
|
(3.8
|
)%
|
126,517
|
137,469
|
(8.0
|
)%
|
||||||||||||||||
EXPENSES
|
||||||||||||||||||||||||
Employee compensation and benefits
|
20,612
|
21,819
|
(5.5
|
)%
|
62,077
|
67,358
|
(7.8
|
)%
|
||||||||||||||||
Non-cash stock-based compensation
|
243
|
220
|
10.5
|
%
|
744
|
617
|
20.6
|
%
|
||||||||||||||||
Other operating expenses
|
8,429
|
9,603
|
(12.2
|
)%
|
24,334
|
26,289
|
(7.4
|
)%
|
||||||||||||||||
Amortization
|
2,562
|
2,613
|
(2.0
|
)%
|
7,679
|
7,646
|
0.4
|
%
|
||||||||||||||||
Depreciation
|
728
|
725
|
0.4
|
%
|
2,164
|
2,169
|
(0.2
|
)%
|
||||||||||||||||
Interest
|
3,483
|
4,443
|
(21.6
|
)%
|
10,932
|
13,756
|
(20.5
|
)%
|
||||||||||||||||
Total expenses
|
36,057
|
39,423
|
(8.5
|
)%
|
107,930
|
117,835
|
(8.4
|
)%
|
||||||||||||||||
Income before income taxes
|
$
|
7,019
|
$
|
5,364
|
30.9
|
%
|
$
|
18,587
|
$
|
19,634
|
(5.3
|
)%
|
||||||||||||
Net internal growth rate – core commissions and fees
|
(5.4
|
)%
|
(17.0
|
)%
|
(7.1
|
)%
|
(14.9
|
)%
|
||||||||||||||||
Employee compensation and benefits ratio
|
47.9
|
%
|
48.7
|
%
|
49.1
|
%
|
49.0
|
%
|
||||||||||||||||
Other operating expenses ratio
|
19.6
|
%
|
21.4
|
%
|
19.2
|
%
|
19.1
|
%
|
||||||||||||||||
Capital expenditures
|
$
|
654
|
$
|
886
|
$
|
2,538
|
$
|
4,148
|
||||||||||||||||
Total assets at September 30, 2009 and 2008
|
$
|
618,801
|
$
|
629,145
|
For the three months
ended September 30,
|
For the nine months
ended September 30,
|
||||||||||||||||||||||||
2009
|
2008
|
%
Change
|
2009
|
2008
|
%
Change
|
||||||||||||||||||||
REVENUES
|
|||||||||||||||||||||||||
Commissions and fees
|
$
|
47,241
|
$
|
45,076
|
4.8
|
%
|
$
|
136,408
|
$
|
120,026
|
13.6
|
%
|
|||||||||||||
Profit-sharing contingent commissions
|
93
|
102
|
(8.8
|
)%
|
12,237
|
7,816
|
56.6
|
%
|
|||||||||||||||||
Investment income
|
1
|
77
|
(98.7
|
)%
|
3
|
263
|
(98.9
|
)%
|
|||||||||||||||||
Other income (loss), net
|
8
|
(15
|
)
|
(153.3
|
)%
|
8
|
36
|
(77.8
|
)%
|
||||||||||||||||
Total revenues
|
47,343
|
45,240
|
4.6
|
%
|
148,656
|
128,141
|
16.0
|
%
|
|||||||||||||||||
EXPENSES
|
|||||||||||||||||||||||||
Employee compensation and benefits
|
18,319
|
17,678
|
3.6
|
%
|
55,379
|
50,229
|
10.3
|
%
|
|||||||||||||||||
Non-cash stock-based compensation
|
259
|
198
|
30.8
|
%
|
772
|
600
|
28.7
|
%
|
|||||||||||||||||
Other operating expenses
|
7,506
|
6,882
|
9.1
|
%
|
20,821
|
20,015
|
4.0
|
%
|
|||||||||||||||||
Amortization
|
2,308
|
2,275
|
1.5
|
%
|
6,870
|
6,825
|
0.7
|
%
|
|||||||||||||||||
Depreciation
|
706
|
695
|
1.6
|
%
|
2,030
|
2,017
|
0.6
|
%
|
|||||||||||||||||
Interest
|
1,348
|
1,834
|
(26.5
|
)%
|
4,209
|
5,890
|
(28.5
|
)%
|
|||||||||||||||||
Total expenses
|
30,446
|
29,562
|
3.0
|
%
|
90,081
|
85,576
|
5.3
|
%
|
|||||||||||||||||
Income before income taxes
|
$
|
16,897
|
$
|
15,678
|
7.8
|
%
|
$
|
58,575
|
$
|
42,565
|
37.6
|
%
|
|||||||||||||
Net internal growth rate – core commissions and fees
|
3.0
|
%
|
7.8
|
%
|
12.8
|
%
|
10.5
|
%
|
|||||||||||||||||
Employee compensation and benefits ratio
|
38.7
|
%
|
39.1
|
%
|
37.3
|
%
|
39.2
|
%
|
|||||||||||||||||
Other operating expenses ratio
|
15.9
|
%
|
15.2
|
%
|
14.0
|
%
|
15.6
|
%
|
|||||||||||||||||
Capital expenditures
|
$
|
1,045
|
$
|
612
|
$
|
3,238
|
$
|
1,980
|
|||||||||||||||||
Total assets at September 30, 2009 and 2008
|
$
|
697,402
|
$
|
615,028
|
For the three months
ended September 30,
|
For the nine months
ended September 30,
|
|||||||||||||||||||||||
2009
|
2008
|
%
Change
|
2009
|
2008
|
%
Change
|
|||||||||||||||||||
REVENUES
|
||||||||||||||||||||||||
Commissions and fees
|
$
|
8,296
|
$
|
7,917
|
4.8
|
%
|
$
|
24,640
|
$
|
23,832
|
3.4
|
%
|
||||||||||||
Profit-sharing contingent commissions
|
—
|
-
|
—
|
%
|
—
|
-
|
—
|
%
|
||||||||||||||||
Investment income
|
6
|
7
|
(14.3
|
)%
|
18
|
6
|
200.0
|
%
|
||||||||||||||||
Other income (loss), net
|
(2
|
)
|
(4
|
)
|
(50.0
|
)%
|
(3
|
)
|
(7
|
)
|
(57.1
|
)%
|
||||||||||||
Total revenues
|
8,300
|
7,920
|
4.8
|
%
|
24,655
|
23,831
|
3.5
|
%
|
||||||||||||||||
EXPENSES
|
||||||||||||||||||||||||
Employee compensation and benefits
|
4,767
|
4,437
|
7.4
|
%
|
14,221
|
13,474
|
5.5
|
%
|
||||||||||||||||
Non-cash stock-based compensation
|
41
|
35
|
17.1
|
%
|
123
|
105
|
17.1
|
%
|
||||||||||||||||
Other operating expenses
|
1,289
|
1,270
|
1.5
|
%
|
3,705
|
3,684
|
0.6
|
%
|
||||||||||||||||
Amortization
|
115
|
115
|
—
|
%
|
346
|
346
|
—
|
%
|
||||||||||||||||
Depreciation
|
75
|
97
|
(22.7
|
)%
|
263
|
317
|
(17.0
|
)%
|
||||||||||||||||
Interest
|
155
|
193
|
(19.7
|
)%
|
514
|
559
|
(8.1
|
)%
|
||||||||||||||||
Total expenses
|
6,442
|
6,147
|
4.8
|
%
|
19,172
|
18,485
|
3.7
|
%
|
||||||||||||||||
Income before income taxes
|
$
|
1,858
|
$
|
1,773
|
4.8
|
%
|
$
|
5,483
|
$
|
5,346
|
2.6
|
%
|
||||||||||||
Net internal growth rate – core commissions and fees
|
4.8
|
%
|
(15.7
|
)%
|
3.4
|
%
|
(13.4
|
)%
|
||||||||||||||||
Employee compensation and benefits ratio
|
57.4
|
%
|
56.0
|
%
|
57.7
|
%
|
56.5
|
%
|
||||||||||||||||
Other operating expenses ratio
|
15.5
|
%
|
16.0
|
%
|
15.0
|
%
|
15.5
|
%
|
||||||||||||||||
Capital expenditures
|
$
|
33
|
$
|
34
|
$
|
120
|
$
|
160
|
||||||||||||||||
Total assets at September 30, 2009 and 2008
|
$
|
46,396
|
$
|
43,238
|
Payments Due by Period
|
||||||||||||||||||||||
(in thousands)
|
Total
|
Less Than
1 Year
|
1-3 Years
|
4-5 Years
|
After 5
Years
|
|||||||||||||||||
Long-term debt
|
$
|
262,051
|
$
|
11,462
|
$
|
100,589
|
$
|
100,000
|
$
|
50,000
|
||||||||||||
Capital lease obligations
|
2
|
2
|
—
|
—
|
—
|
|||||||||||||||||
Other long-term liabilities
|
16,898
|
9,225
|
5,678
|
763
|
1,232
|
|||||||||||||||||
Operating leases
|
92,472
|
26,171
|
36,478
|
17,923
|
11,900
|
|||||||||||||||||
Interest obligations
|
57,411
|
14,448
|
23,014
|
16,408
|
3,541
|
|||||||||||||||||
Unrecognized tax benefits
|
635
|
—
|
635
|
—
|
—
|
|||||||||||||||||
Maximum future acquisition contingency payments
|
182,966
|
67,933
|
114,684
|
349
|
—
|
|||||||||||||||||
Total contractual cash obligations
|
$
|
612,435
|
$
|
129,241
|
$
|
281,078
|
$
|
135,443
|
$
|
66,673
|
3.1
|
Articles of Amendment to Articles of Incorporation (adopted April 24, 2003) (incorporated by reference to Exhibit 3a to Form 10-Q for the quarter ended March 31, 2003), and Amended and Restated Articles of Incorporation (incorporated by reference to Exhibit 3a to Form 10-Q for the quarter ended March 31, 1999).
|
3.2
|
Bylaws (incorporated by reference to Exhibit 3b to Form 10-K for the year ended December 31, 2002).
|
10.1
|
Employment Agreement with J. Hyatt Brown, dated and effective as of July 1, 2009 (incorporated by reference to Exhibit 10.1 to Form 10-Q for the quarter ended June 30, 2009).
|
10.2
|
Registrant’s Stock Performance Plan, as amended.
|
10.3
|
Letter Amendment, dated September 30, 2009, to the Master Agreement (incorporated by reference to Exhibit 10.1 from Form 8-K filed on October 5, 2009).
|
31.1
|
Rule 13a-14(a)/15d-14(a) Certification by the Chief Executive Officer of the Registrant.
|
31.2
|
Rule 13a-14(a)/15d-14(a) Certification by the Chief Financial Officer of the Registrant.
|
32.1
|
Section 1350 Certification by the Chief Executive Officer of the Registrant.
|
32.2
|
Section 1350 Certification by the Chief Financial Officer of the Registrant.
|
BROWN & BROWN, INC.
|
||
/s/ CORY T. WALKER
|
||
Date: November 6, 2009
|
Cory T. Walker
|
|
Sr. Vice President, Chief Financial Officer and Treasurer
|
||
(duly authorized officer, principal financial officer and principal accounting officer)
|
|
(1)
|
the Key Employee has attained age sixty-four;
|
|
(2)
|
the Key Employee's employment with the Company terminates as a result of his or her death or Disability; or
|
|
(3)
|
the Committee, in its sole and absolute discretion, waives the conditions described in this Section 6.03.
|
(a)
|
to increase the number of shares of Stock reserved under Article III of this Plan;
|
(b)
|
to change the class of employees of the Company eligible for awards of Performance Stock or to otherwise materially modify the requirements as to eligibility for participation in this Plan; or
|
(c)
|
to modify the material terms of this Plan that must be approved by shareholders of the Company under the rules relating to the qualified performance-based compensation exemption from the limit on tax deductibility of compensation under Section 162(m) of the Code.
|
|
(a)
|
the twentieth anniversary of the effective date of this Plan, as determined under Article IV of this Plan, in which event this Plan otherwise thereafter shall continue in effect until all Performance Stock awarded under this Plan has been forfeited or the conditions described in Section 6.03 of this Plan for nonforfeitability of all Performance Stock awarded under this Plan have been completely satisfied; or
|
|
(b)
|
the date on which all of the Stock reserved under Article III of this Plan has, as a result of the satisfaction of the conditions described in Section 6.03 of this Plan for nonforfeitability of Performance Stock awarded under this Plan, been issued or no longer is available for use under this Plan, in which event this Plan also shall terminate on such date.
|
Date: November 6, 2009
|
|
/s/ J. Powell Brown
|
|
J. Powell Brown
|
|
Chief Executive Officer
|
Date: November 6, 2009
|
|
/s/ Cory T. Walker
|
|
Cory T. Walker
|
|
Chief Financial Officer
|