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Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934
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☐ |
Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934
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Delaware |
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61-1937225 | ||||||||||||||||||
(State or other jurisdiction of | (I.R.S. Employer | |||||||||||||||||||
incorporation or organization) | Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Class A Common Stock, par value $0.01 per share | BRP | Nasdaq Global Select Market |
Large accelerated filer |
☐
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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Page | ||||||||||||||
(in thousands, except share and per share data) | September 30, 2020 | December 31, 2019 | ||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 50,220 | $ | 67,689 | ||||||||||
Restricted cash | 7,778 | 3,382 | ||||||||||||
Premiums, commissions and fees receivable, net | 98,345 | 58,793 | ||||||||||||
Prepaid expenses and other current assets | 2,689 | 3,019 | ||||||||||||
Due from related parties | 41 | 43 | ||||||||||||
Total current assets | 159,073 | 132,926 | ||||||||||||
Property and equipment, net | 7,791 | 3,322 | ||||||||||||
Other assets | 7,949 | 5,600 | ||||||||||||
Intangible assets, net | 203,555 | 92,450 | ||||||||||||
Goodwill | 344,396 | 164,470 | ||||||||||||
Total assets | $ | 722,764 | $ | 398,768 | ||||||||||
Liabilities, Mezzanine Equity and Stockholders’ Equity
|
||||||||||||||
Current liabilities: | ||||||||||||||
Premiums payable to insurance companies | $ | 83,617 | $ | 50,541 | ||||||||||
Producer commissions payable | 12,019 | 7,470 | ||||||||||||
Accrued expenses and other current liabilities | 21,851 | 12,334 | ||||||||||||
Current portion of contingent earnout liabilities | 7,065 | 2,480 | ||||||||||||
Total current liabilities | 124,552 | 72,825 | ||||||||||||
Revolving lines of credit | 101,000 | 40,363 | ||||||||||||
Contingent earnout liabilities, less current portion | 78,323 | 46,289 | ||||||||||||
Other liabilities | 2,194 | 2,017 | ||||||||||||
Total liabilities | 306,069 | 161,494 | ||||||||||||
Commitments and contingencies (Note 14) | ||||||||||||||
Mezzanine equity: | ||||||||||||||
Redeemable noncontrolling interest | 101 | 23 | ||||||||||||
Stockholders’ equity: | ||||||||||||||
Class A common stock, par value $0.01 per share, 300,000,000 shares authorized; 33,932,868 and 19,362,984 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively
|
339 | 194 | ||||||||||||
Class B common stock, par value $0.0001 per share, 50,000,000 shares authorized; 45,247,711 and 43,257,738 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively
|
4 | 4 | ||||||||||||
Additional paid-in capital | 237,644 | 82,425 | ||||||||||||
Accumulated deficit | (14,038) | (8,650) | ||||||||||||
Notes receivable from stockholders | (519) | (688) | ||||||||||||
Total stockholders’ equity attributable to BRP Group, Inc. | 223,430 | 73,285 | ||||||||||||
Noncontrolling interest | 193,164 | 163,966 | ||||||||||||
Total stockholders’ equity | 416,594 | 237,251 | ||||||||||||
Total liabilities, mezzanine equity and stockholders’ equity | $ | 722,764 | $ | 398,768 |
(in thousands) | September 30, 2020 | December 31, 2019 | ||||||||||||
Assets of Consolidated Variable Interest Entities That Can Only be Used to Settle the Obligations of Consolidated Variable Interest Entities:
|
||||||||||||||
Cash and cash equivalents | $ | 122 | $ | 47 | ||||||||||
Premiums, commissions and fees receivable, net | 153 | 75 | ||||||||||||
Total current assets | 275 | 122 | ||||||||||||
Property and equipment, net | 23 | 31 | ||||||||||||
Other assets | 5 | 7 | ||||||||||||
Total assets | $ | 303 | $ | 160 | ||||||||||
Liabilities of Consolidated Variable Interest Entities for Which Creditors Do Not Have Recourse to the Company:
|
||||||||||||||
Premiums payable to insurance companies | $ | 1 | $ | 6 | ||||||||||
Producer commissions payable | 19 | 15 | ||||||||||||
Accrued expenses and other current liabilities | 7 | 29 | ||||||||||||
Total liabilities | $ | 27 | $ | 50 |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
|||||||||||||||||||||||||
(in thousands, except share and per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||
Commissions and fees
|
$ | 65,843 | $ | 38,383 | $ | 171,270 | $ | 101,280 | ||||||||||||||||||
Operating expenses:
|
||||||||||||||||||||||||||
Commissions, employee compensation and benefits
|
48,469 | 26,788 | 122,280 | 67,068 | ||||||||||||||||||||||
Other operating expenses
|
12,146 | 6,320 | 30,577 | 16,711 | ||||||||||||||||||||||
Amortization expense
|
5,185 | 3,082 | 13,231 | 6,793 | ||||||||||||||||||||||
Change in fair value of contingent consideration
|
6,455 | 535 | 12,697 | (3,222) | ||||||||||||||||||||||
Depreciation expense
|
258 | 184 | 663 | 460 | ||||||||||||||||||||||
Total operating expenses
|
72,513 | 36,909 | 179,448 | 87,810 | ||||||||||||||||||||||
Operating income (loss)
|
(6,670) | 1,474 | (8,178) | 13,470 | ||||||||||||||||||||||
Other expense: | ||||||||||||||||||||||||||
Interest expense, net | (922) | (3,785) | (2,554) | (8,998) | ||||||||||||||||||||||
Other income (expense) | (23) | 5 | (23) | 5 | ||||||||||||||||||||||
Total other expense | (945) | (3,780) | (2,577) | (8,993) | ||||||||||||||||||||||
Income (loss) before income taxes
|
(7,615) | (2,306) | (10,755) | 4,477 | ||||||||||||||||||||||
Income tax provision
|
— | — | 12 | — | ||||||||||||||||||||||
Net income (loss)
|
(7,615) | (2,306) | (10,767) | 4,477 | ||||||||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests
|
(4,347) | (2,306) | (5,379) | 4,477 | ||||||||||||||||||||||
Net loss attributable to BRP Group, Inc.
|
$ | (3,268) | $ | — | $ | (5,388) | $ | — | ||||||||||||||||||
Comprehensive income (loss)
|
$ | (7,615) | $ | (2,306) | $ | (10,767) | $ | 4,477 | ||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interests
|
(4,347) | (2,306) | (5,379) | 4,477 | ||||||||||||||||||||||
Comprehensive loss attributable to BRP Group, Inc.
|
(3,268) | — | (5,388) | — | ||||||||||||||||||||||
Basic and diluted net loss per share
|
$ | (0.10) | $ | (0.22) | ||||||||||||||||||||||
Basic and diluted weighted-average shares of Class A common stock outstanding
|
33,098,356 | 24,371,304 |
For the Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ Equity
|
Mezzanine Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except share data) | Shares | Amount | Shares | Amount | APIC | Accumulated Deficit | Notes Receivable from Stockholders | Non-controlling Interest | Total | Redeemable Non-controlling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 33,302,477 | $ | 333 | 45,458,763 | $ | 4 | $ | 235,520 | $ | (10,770) | $ | (573) | $ | 198,049 | $ | 422,563 | $ | 71 | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | (3,268) | — | (4,369) | (7,637) | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Offering costs | — | — | — | — | (28) | — | — | — | (28) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity issued in business combinations | 25,491 | — | — | — | 445 | — | — | — | 445 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation, net of forfeitures | 393,848 | 4 | — | — | 908 | — | — | 285 | 1,197 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemptions and repurchases of common stock | 211,052 | 2 | (211,052) | — | 799 | — | — | (801) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of stockholder notes receivable | — | — | — | — | — | — | 54 | — | 54 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | — | — | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 33,932,868 | $ | 339 | 45,247,711 | $ | 4 | $ | 237,644 | $ | (14,038) | $ | (519) | $ | 193,164 | $ | 416,594 | $ | 101 |
For the Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ Equity
|
Mezzanine Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except share data) | Shares | Amount | Shares | Amount | APIC | Accumulated Deficit | Notes Receivable from Stockholders | Non-controlling Interest | Total | Redeemable Non-controlling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 19,362,984 | $ | 194 | 43,257,738 | $ | 4 | $ | 82,425 | $ | (8,650) | $ | (688) | $ | 163,966 | $ | 237,251 | $ | 23 | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | (5,388) | — | (5,438) | (10,826) | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock in offering, net of underwriting discounts and offering costs | 13,225,000 | 132 | (2,475,000) | — | 144,497 | — | — | (9,398) | 135,231 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity issued in business combinations | 513,025 | 5 | 4,805,572 | — | 8,117 | — | — | 44,453 | 52,575 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation, net of forfeitures | 580,045 | 6 | — | — | 2,600 | — | — | 880 | 3,486 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemptions and repurchases of common stock | 251,814 | 2 | (340,599) | — | 5 | — | — | (1,299) | (1,292) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of stockholder notes receivable | — | — | — | — | — | — | 169 | — | 169 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | — | — | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 33,932,868 | $ | 339 | 45,247,711 | $ | 4 | $ | 237,644 | $ | (14,038) | $ | (519) | $ | 193,164 | $ | 416,594 | $ | 101 |
For the Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||
Members’ Equity (Deficit) | Mezzanine Equity | |||||||||||||||||||||||||||||||||||||
(in thousands) |
Members’ Deficit
|
Notes Receivable from Members | Noncontrolling Interest | Total | Redeemable Noncontrolling Interest | Redeemable Members’ Capital | ||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | (128,869) | $ | (256) | $ | 2,424 | $ | (126,701) | $ | 65,906 | $ | 110,596 | ||||||||||||||||||||||||||
Net income (loss) | (2,578) | — | (20) | (2,598) | 1,440 | (1,148) | ||||||||||||||||||||||||||||||||
Contributions | — | — | — | — | 1 | — | ||||||||||||||||||||||||||||||||
Repayment of member notes receivable | — | 16 | — | 16 | — | — | ||||||||||||||||||||||||||||||||
Issuance and vesting of Management Incentive Units | 303 | — | — | 303 | — | — | ||||||||||||||||||||||||||||||||
Issuance of common units | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Equity issued in business combinations | — | — | — | — | 6,674 | — | ||||||||||||||||||||||||||||||||
Change in the redemption value of redeemable interests | (74,166) | — | — | (74,166) | 11,125 | 63,041 | ||||||||||||||||||||||||||||||||
Distributions | (732) | — | (17) | (749) | (2,538) | (251) | ||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | (206,042) | $ | (240) | $ | 2,387 | $ | (203,895) | $ | 82,608 | $ | 172,238 |
For the Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||
Members’ Equity (Deficit) | Mezzanine Equity | |||||||||||||||||||||||||||||||||||||
(in thousands) |
Members’ Deficit
|
Notes Receivable from Members | Noncontrolling Interest | Total | Redeemable Noncontrolling Interest | Redeemable Members’ Capital | ||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | (63,606) | $ | (90) | $ | 937 | $ | (62,759) | $ | 46,208 | $ | 39,354 | ||||||||||||||||||||||||||
Net income | 119 | — | 112 | 231 | 3,761 | 485 | ||||||||||||||||||||||||||||||||
Contributions | — | — | — | — | 35 | — | ||||||||||||||||||||||||||||||||
Contributions through issuance of member notes receivable | — | (310) | 47 | (263) | 263 | — | ||||||||||||||||||||||||||||||||
Repayment of member notes receivable | — | 160 | — | 160 | — | — | ||||||||||||||||||||||||||||||||
Issuance and vesting of Management Incentive Units | 663 | — | — | 663 | — | — | ||||||||||||||||||||||||||||||||
Issuance of common units | 612 | — | 386 | 998 | — | 5,509 | ||||||||||||||||||||||||||||||||
Repurchase of common units | — | — | — | — | — | (11,177) | ||||||||||||||||||||||||||||||||
Repurchase redemption value adjustments | — | — | — | — | — | (1,323) | ||||||||||||||||||||||||||||||||
Equity issued in business combinations | — | — | 1,000 | 1,000 | 37,637 | — | ||||||||||||||||||||||||||||||||
Change in the redemption value of redeemable interests | (140,708) | — | — | (140,708) | 167 | 140,541 | ||||||||||||||||||||||||||||||||
Distributions | (3,122) | — | (95) | (3,217) | (5,463) | (1,151) | ||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | (206,042) | $ | (240) | $ | 2,387 | $ | (203,895) | $ | 82,608 | $ | 172,238 |
For the Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2020 | 2019 | ||||||||||||
Cash flows from operating activities:
|
||||||||||||||
Net income (loss)
|
$ | (10,767) | $ | 4,477 | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||||||||
Depreciation and amortization
|
13,894 | 7,253 | ||||||||||||
Change in fair value of contingent consideration
|
12,697 | (3,222) | ||||||||||||
Share-based compensation expense
|
5,357 | 110 | ||||||||||||
Payment of contingent earnout consideration in excess of purchase price accrual | (1,727) | — | ||||||||||||
Amortization of deferred financing costs
|
384 | 1,117 | ||||||||||||
Loss on extinguishment of debt
|
— | 115 | ||||||||||||
Issuance and vesting of Management Incentive Units
|
— | 663 | ||||||||||||
Participation unit compensation
|
— | 150 | ||||||||||||
Changes in operating assets and liabilities, net of effect of acquisitions:
|
||||||||||||||
Premiums, commissions and fees receivable, net
|
(12,717) | (441) | ||||||||||||
Prepaid expenses and other current assets
|
230 | (921) | ||||||||||||
Due from related parties
|
2 | 73 | ||||||||||||
Accounts payable, accrued expenses and other current liabilities
|
23,418 | 5,090 | ||||||||||||
Other liabilities
|
— | 105 | ||||||||||||
Net cash provided by operating activities
|
30,771 | 14,569 | ||||||||||||
Cash flows from investing activities:
|
||||||||||||||
Capital expenditures
|
(4,135) | (1,465) | ||||||||||||
Investment in business venture
|
— | (200) | ||||||||||||
Cash consideration paid for asset acquisitions, net of cash received
|
(695) | (671) | ||||||||||||
Cash consideration paid for business combinations, net of cash received
|
(230,403) | (99,486) | ||||||||||||
Net cash used in investing activities
|
(235,233) | (101,822) | ||||||||||||
Cash flows from financing activities:
|
||||||||||||||
Proceeds from issuance of Class A common stock, net of underwriting discounts
|
167,346 | — | ||||||||||||
Repurchase/redemption of LLC Units and Class B common stock
|
(32,610) | — | ||||||||||||
Payment of common stock offering costs
|
(798) | — | ||||||||||||
Payment of contingent and guaranteed earnout consideration
|
(1,192) | (813) | ||||||||||||
Proceeds from revolving line of credit
|
185,637 | 68,464 | ||||||||||||
Repayments of revolving line of credit
|
(125,000) | — | ||||||||||||
Proceeds from related party debt
|
— | 49,845 | ||||||||||||
Payments on long-term debt
|
— | (204) | ||||||||||||
Payments of debt issuance costs and debt extinguishment costs
|
(2,182) | (15) | ||||||||||||
Proceeds from repayment of stockholder/member notes receivable
|
169 | 160 | ||||||||||||
Repurchase of common units
|
— | (12,500) | ||||||||||||
Distributions
|
— | (9,831) | ||||||||||||
Other
|
19 | 1,662 | ||||||||||||
Net cash provided by financing activities
|
191,389 | 96,768 | ||||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | (13,073) | 9,515 | ||||||||||||
Cash and cash equivalents and restricted cash at beginning of period
|
71,071 | 7,995 | ||||||||||||
Cash and cash equivalents and restricted cash at end of period
|
$ | 57,998 | $ | 17,510 |
BRP GROUP, INC. | ||||||||||||||
Condensed Consolidated Statements of Cash Flows (Continued)
|
||||||||||||||
(Unaudited) | ||||||||||||||
For the Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2020 | 2019 | ||||||||||||
Supplemental schedule of cash flow information: | ||||||||||||||
Cash paid during the period for interest | $ | 2,309 | $ | 7,480 | ||||||||||
Disclosure of non-cash investing and financing activities: | ||||||||||||||
Equity issued in business combinations | $ | 52,575 | $ | 38,637 | ||||||||||
Contingent earnout consideration issuances | 26,612 | 29,117 | ||||||||||||
Additions to property and equipment included in accrued expenses and other current liabilities | 561 | — | ||||||||||||
Change in the redemption value of redeemable interests | — | 140,708 | ||||||||||||
Capitalization of issuance to redeemable common member | — | 5,509 | ||||||||||||
Capitalization of offering costs | — | 4,207 | ||||||||||||
Debt issuance costs added to revolving line of credit | — | 2,554 | ||||||||||||
Transfer of long-term debt to revolving line of credit | — | 1,820 | ||||||||||||
Contingently returnable consideration for business combinations | — | 321 |
(in thousands) | Lanier | Highland | IRP | Rosenthal | TBA/RBA | All Others | Totals | ||||||||||||||||||||||||||||||||||
Cash consideration paid | $ | 24,450 | $ | 6,603 | $ | 26,223 | $ | 75,936 | $ | 76,272 | $ | 28,634 | $ | 238,118 | |||||||||||||||||||||||||||
Fair value of contingent earnout consideration | 1,628 | 788 | 5,521 | 7,051 | 7,000 | 4,624 | 26,612 | ||||||||||||||||||||||||||||||||||
Fair value of equity interest | 6,119 | 4,500 | 7,535 | 10,147 | 21,427 | 2,847 | 52,575 | ||||||||||||||||||||||||||||||||||
Deferred payment | — | — | — | — | 300 | 59 | 359 | ||||||||||||||||||||||||||||||||||
Total consideration | $ | 32,197 | $ | 11,891 | $ | 39,279 | $ | 93,134 | $ | 104,999 | $ | 36,164 | $ | 317,664 | |||||||||||||||||||||||||||
Cash | $ | 2,413 | $ | 1,542 | $ | 1,694 | $ | 954 | $ | — | $ | 1,112 | $ | 7,715 | |||||||||||||||||||||||||||
Premiums, commissions and fees receivable | 2,494 | 5,929 | 3,229 | 4,734 | 8,731 | 1,718 | 26,835 | ||||||||||||||||||||||||||||||||||
Property and equipment | 294 | — | 123 | — | — | 26 | 443 | ||||||||||||||||||||||||||||||||||
Other assets | 168 | 13 | 11 | 11 | — | 19 | 222 | ||||||||||||||||||||||||||||||||||
Intangible assets | — | ||||||||||||||||||||||||||||||||||||||||
Purchased customer accounts | 4,312 | — | 6,250 | 33,670 | 53,900 | 3,489 | 101,621 | ||||||||||||||||||||||||||||||||||
Distributor relationships | — | 6,500 | — | — | — | 12,880 | 19,380 | ||||||||||||||||||||||||||||||||||
Carrier relationships | — | 659 | — | — | — | — | 659 | ||||||||||||||||||||||||||||||||||
Software | — | — | — | — | — | 565 | 565 | ||||||||||||||||||||||||||||||||||
Trade names | — | 214 | — | 939 | 179 | 77 | 1,409 | ||||||||||||||||||||||||||||||||||
Goodwill | 25,735 | 4,276 | 32,273 | 56,253 | 44,264 | 17,125 | 179,926 | ||||||||||||||||||||||||||||||||||
Total assets acquired
|
35,416 | 19,133 | 43,580 | 96,561 | 107,074 | 37,011 | 338,775 | ||||||||||||||||||||||||||||||||||
Premiums and producer commissions payable | (2,954) | (6,374) | (4,301) | (3,427) | (2,075) | (586) | (19,717) | ||||||||||||||||||||||||||||||||||
Accrued expenses and other current liabilities | (265) | (868) | — | — | — | (261) | (1,394) | ||||||||||||||||||||||||||||||||||
Total liabilities acquired
|
(3,219) | (7,242) | (4,301) | (3,427) | (2,075) | (847) | (21,111) | ||||||||||||||||||||||||||||||||||
Net assets acquired
|
$ | 32,197 | $ | 11,891 | $ | 39,279 | $ | 93,134 | $ | 104,999 | $ | 36,164 | $ | 317,664 | |||||||||||||||||||||||||||
Maximum potential contingent earnout consideration (1)
|
$ | 11,000 | $ | 2,450 | $ | 44,399 | $ | 30,843 | $ | 30,147 | $ | 15,930 | $ | 134,769 |
Weighted-Average Life | |||||
Purchased customer accounts | 19.3 years | ||||
Distributor relationships | 20.0 years | ||||
Carrier relationships | 0.8 years | ||||
Software | 2.0 years | ||||
Trade names | 4.3 years |
(in thousands) | Amount | |||||||
For the remainder of 2020 | $ | 2,092 | ||||||
2021 | 8,545 | |||||||
2022 | 8,280 | |||||||
2023 | 8,132 | |||||||
2024 | 7,942 |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
|||||||||||||||||||||||||
(in thousands, except per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Pro forma results: | ||||||||||||||||||||||||||
Revenues | $ | 66,075 | $ | 56,095 | $ | 201,960 | $ | 163,522 | ||||||||||||||||||
Net income (loss) | (7,588) | (3,448) | (882) | 5,647 | ||||||||||||||||||||||
Net loss attributable to BRP Group, Inc. | (3,250) | (320) | ||||||||||||||||||||||||
Basic and diluted loss per share | $ | (0.10) | $ | (0.01) | ||||||||||||||||||||||
Weighted-average shares of Class A common stock outstanding - basic and diluted | 33,107 | 24,408 |
At September 30, 2020 | ||||||||||||||||||||||||||
(in thousands) | Laureate | Smith | Saunders | Total | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 91 | $ | 1 | $ | 30 | $ | 122 | ||||||||||||||||||
Premiums, commissions and fees receivable, net | 6 | 64 | 83 | 153 | ||||||||||||||||||||||
Total current assets | 97 | 65 | 113 | 275 | ||||||||||||||||||||||
Property and equipment, net | 23 | — | — | 23 | ||||||||||||||||||||||
Other assets | 5 | — | — | 5 | ||||||||||||||||||||||
Total assets | $ | 125 | $ | 65 | $ | 113 | $ | 303 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Premiums payable to insurance companies | $ | — | $ | — | $ | 1 | $ | 1 | ||||||||||||||||||
Producer commissions payable | — | — | 19 | 19 | ||||||||||||||||||||||
Accrued expenses and other current liabilities | 7 | — | — | 7 | ||||||||||||||||||||||
Total liabilities | $ | 7 | $ | — | $ | 20 | $ | 27 |
At December 31, 2019 | ||||||||||||||||||||||||||
(in thousands) | Laureate | Smith | Saunders | Total | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 46 | $ | 1 | $ | — | $ | 47 | ||||||||||||||||||
Premiums, commissions and fees receivable, net | — | 44 | 31 | 75 | ||||||||||||||||||||||
Total current assets | 46 | 45 | 31 | 122 | ||||||||||||||||||||||
Property and equipment, net | 31 | — | — | 31 | ||||||||||||||||||||||
Other assets | 5 | — | 2 | 7 | ||||||||||||||||||||||
Total assets | $ | 82 | $ | 45 | $ | 33 | $ | 160 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Premiums payable to insurance companies | $ | 3 | $ | — | $ | 3 | $ | 6 | ||||||||||||||||||
Producer commissions payable | 2 | 5 | 8 | 15 | ||||||||||||||||||||||
Accrued expenses and other current liabilities | 4 | 25 | — | 29 | ||||||||||||||||||||||
Total liabilities | $ | 9 | $ | 30 | $ | 11 | $ | 50 |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
|||||||||||||||||||||||||
(in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Direct bill revenue (1)
|
$ | 26,996 | $ | 17,664 | $ | 77,535 | $ | 53,258 | ||||||||||||||||||
Agency bill revenue (2)
|
28,130 | 14,253 | 64,815 | 31,084 | ||||||||||||||||||||||
Profit-sharing revenue (3)
|
3,535 | 1,587 | 11,285 | 7,877 | ||||||||||||||||||||||
Policy fee and installment fee revenue (4)
|
4,051 | 2,719 | 11,086 | 5,112 | ||||||||||||||||||||||
Consulting and service fee revenue (5)
|
720 | 1,111 | 2,228 | 2,337 | ||||||||||||||||||||||
Other income (6)
|
2,411 | 1,049 | 4,321 | 1,612 | ||||||||||||||||||||||
Total commissions and fees | $ | 65,843 | $ | 38,383 | $ | 171,270 | $ | 101,280 |
(in thousands) | September 30, 2020 | December 31, 2019 | ||||||||||||
Contract assets | $ | 49,872 | $ | 47,337 | ||||||||||
Contract liabilities | 7,542 | 5,349 |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
|||||||||||||||||||||||||
(in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Balance at beginning of period | $ | 4,060 | $ | 3,094 | $ | 3,621 | $ | 2,882 | ||||||||||||||||||
Costs capitalized | 540 | 599 | 1,649 | 1,280 | ||||||||||||||||||||||
Amortization | (344) | (274) | (1,014) | (743) | ||||||||||||||||||||||
Balance at end of period | $ | 4,256 | $ | 3,419 | $ | 4,256 | $ | 3,419 |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||||||||||||||||||||||||
Purchased customer accounts | $ | 156,303 | $ | (15,692) | $ | 140,611 | $ | 53,987 | $ | (9,143) | $ | 44,844 | ||||||||||||||||||||||||||
Software | 31,161 | (9,773) | 21,388 | 30,590 | (5,070) | 25,520 | ||||||||||||||||||||||||||||||||
Distributor relationships | 32,380 | (1,093) | 31,287 | 13,000 | (331) | 12,669 | ||||||||||||||||||||||||||||||||
Carrier relationships | 7,859 | (945) | 6,914 | 7,200 | (170) | 7,030 | ||||||||||||||||||||||||||||||||
Trade names | 4,022 | (667) | 3,355 | 2,613 | (226) | 2,387 | ||||||||||||||||||||||||||||||||
Totals | $ | 231,725 | $ | (28,170) | $ | 203,555 | $ | 107,390 | $ | (14,940) | $ | 92,450 |
(in thousands) | Middle Market | Specialty | MainStreet | Medicare | Total | |||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 52,932 | $ | 60,115 | $ | 38,892 | $ | 12,531 | $ | 164,470 | ||||||||||||||||||||||
Goodwill of acquired businesses | 165,266 | 6,267 | — | 8,393 | 179,926 | |||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | 218,198 | $ | 66,382 | $ | 38,892 | $ | 20,924 | $ | 344,396 |
Shares | Weighted-Average Grant-Date Fair Value Per Share | Weighted-Average Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||||||||||||||
Outstanding at December 31, 2019
|
330,244 | $ | 14.00 | 3.66 | $ | 677 | ||||||||||||||||||||
Granted
|
645,843 | 14.71 | 2.15 | |||||||||||||||||||||||
Vested and settled
|
(161,965) | 11.45 | 54 | |||||||||||||||||||||||
Forfeited
|
(30,551) | 14.14 | ||||||||||||||||||||||||
Outstanding at September 30, 2020
|
783,571 | $ | 15.11 | 2.64 | $ | 7,683 |
(in thousands, except per share data) | For the Three Months Ended September 30, 2020 | For the Nine Months Ended September 30, 2020 | ||||||||||||
Basic and diluted net loss per share: | ||||||||||||||
Net loss attributable to BRP Group, Inc. | $ | (3,268) | $ | (5,388) | ||||||||||
Shares used for basic net loss per share: | ||||||||||||||
Basic and diluted weighted-average shares of Class A common stock outstanding | 33,098 | 24,371 | ||||||||||||
Basic and diluted net loss per share | $ | (0.10) | $ | (0.22) |
(in thousands) | September 30, 2020 | December 31, 2019 | ||||||||||||
Level 3 | ||||||||||||||
Contingently returnable consideration | $ | 299 | $ | 70 | ||||||||||
Level 3 Assets | $ | 299 | $ | 70 | ||||||||||
Contingent earnout liabilities | $ | 85,388 | $ | 48,769 | ||||||||||
Level 3 Liabilities | $ | 85,388 | $ | 48,769 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
(in thousands) | Contingently Returnable Consideration | Contingent Earnout Liabilities | Contingent Earnout Liabilities | Contingently Returnable Consideration | Contingent Earnout Liabilities | Contingent Earnout Liabilities | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 387 | $ | 78,535 | $ | 31,111 | $ | 70 | $ | 48,769 | $ | 9,249 | ||||||||||||||||||||||||||
Fair value of contingent consideration issuances | — | 1,424 | 3,498 | — | 26,612 | 29,117 | ||||||||||||||||||||||||||||||||
Change in fair value of contingent consideration
|
(88) | 6,367 | 535 | 229 | 12,926 | (3,222) | ||||||||||||||||||||||||||||||||
Payment of contingent consideration
|
— | (938) | — | — | (2,919) | — | ||||||||||||||||||||||||||||||||
Balance at end of period | $ | 299 | $ | 85,388 | $ | 35,144 | $ | 299 | $ | 85,388 | $ | 35,144 |
For the Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
(in thousands) | Middle Market | Specialty | MainStreet | Medicare | Corporate and Other | Total | |||||||||||||||||||||||||||||
Commissions and fees
|
$ | 26,561 | $ | 27,486 | $ | 7,905 | $ | 4,101 | $ | (210) | $ | 65,843 | |||||||||||||||||||||||
Net income (loss)
|
1,175 | (1,278) | 1,197 | 214 | (8,923) | $ | (7,615) |
For the Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||
(in thousands) | Middle Market | Specialty | MainStreet | Medicare | Corporate and Other | Total | |||||||||||||||||||||||||||||
Commissions and fees
|
$ | 12,836 | $ | 16,732 | $ | 6,642 | $ | 2,173 | $ | — | $ | 38,383 | |||||||||||||||||||||||
Net income (loss)
|
295 | 2,190 | 1,016 | 388 | (6,195) | (2,306) |
For the Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
(in thousands) | Middle Market | Specialty | MainStreet | Medicare | Corporate and Other | Total | |||||||||||||||||||||||||||||
Commissions and fees
|
$ | 69,311 | $ | 64,358 | $ | 23,917 | $ | 13,894 | $ | (210) | $ | 171,270 | |||||||||||||||||||||||
Net income (loss)
|
11,789 | (6,190) | 3,397 | 2,661 | (22,424) | $ | (10,767) |
For the Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||
(in thousands) | Middle Market | Specialty | MainStreet | Medicare | Corporate and Other | Total | |||||||||||||||||||||||||||||
Commissions and fees
|
$ | 41,481 | $ | 32,497 | $ | 18,942 | $ | 8,360 | $ | — | $ | 101,280 | |||||||||||||||||||||||
Net income (loss)
|
10,475 | 1,590 | 4,596 | 2,833 | (15,017) | 4,477 |
(in thousands) | Middle Market | Specialty | MainStreet | Medicare | Corporate and Other | Total | |||||||||||||||||||||||||||||
Total assets at September 30, 2020 | 405,278 | 195,947 | 59,873 | 42,362 | 19,304 | $ | 722,764 | ||||||||||||||||||||||||||||
Total assets at December 31, 2019 | 105,353 | 154,983 | 60,253 | 17,533 | 60,646 | 398,768 |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
||||||||||||||||||||||||||||||||||
(in thousands) | 2020 | 2019 | Variance | 2020 | 2019 | Variance | |||||||||||||||||||||||||||||
Revenues:
|
|||||||||||||||||||||||||||||||||||
Commissions and fees
|
$ | 65,843 | $ | 38,383 | $ | 27,460 | $ | 171,270 | $ | 101,280 | $ | 69,990 | |||||||||||||||||||||||
Operating expenses:
|
|||||||||||||||||||||||||||||||||||
Commissions, employee compensation and benefits
|
48,469 | 26,788 | 21,681 | 122,280 | 67,068 | 55,212 | |||||||||||||||||||||||||||||
Other operating expenses
|
12,146 | 6,320 | 5,826 | 30,577 | 16,711 | 13,866 | |||||||||||||||||||||||||||||
Amortization expense
|
5,185 | 3,082 | 2,103 | 13,231 | 6,793 | 6,438 | |||||||||||||||||||||||||||||
Change in fair value of contingent consideration
|
6,455 | 535 | 5,920 | 12,697 | (3,222) | 15,919 | |||||||||||||||||||||||||||||
Depreciation expense
|
258 | 184 | 74 | 663 | 460 | 203 | |||||||||||||||||||||||||||||
Total operating expenses
|
72,513 | 36,909 | 35,604 | 179,448 | 87,810 | 91,638 | |||||||||||||||||||||||||||||
Operating income (loss)
|
(6,670) | 1,474 | (8,144) | (8,178) | 13,470 | (21,648) | |||||||||||||||||||||||||||||
Other expense: | |||||||||||||||||||||||||||||||||||
Interest expense, net | (922) | (3,785) | 2,863 | (2,554) | (8,998) | 6,444 | |||||||||||||||||||||||||||||
Other income (expense) | (23) | 5 | (28) | (23) | 5 | (28) | |||||||||||||||||||||||||||||
Total other expense | (945) | (3,780) | 2,835 | (2,577) | (8,993) | 6,416 | |||||||||||||||||||||||||||||
Income (loss) before income taxes
|
(7,615) | (2,306) | (5,309) | (10,755) | 4,477 | (15,232) | |||||||||||||||||||||||||||||
Income tax provision
|
— | — | — | 12 | — | 12 | |||||||||||||||||||||||||||||
Net income (loss)
|
(7,615) | (2,306) | (5,309) | (10,767) | 4,477 | (15,244) | |||||||||||||||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests
|
(4,347) | (2,306) | (2,041) | (5,379) | 4,477 | (9,856) | |||||||||||||||||||||||||||||
Net loss attributable to BRP Group, Inc.
|
$ | (3,268) | $ | — | $ | (3,268) | $ | (5,388) | $ | — | $ | (5,388) |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
|||||||||||||||||||||||||||||||||||||
(in thousands) | 2020 | 2019 | Variance | 2020 | 2019 | Variance | ||||||||||||||||||||||||||||||||
Direct bill revenue | $ | 26,996 | $ | 17,664 | $ | 9,332 | $ | 77,535 | $ | 53,258 | $ | 24,277 | ||||||||||||||||||||||||||
Agency bill revenue | 28,130 | 14,253 | 13,877 | 64,815 | 31,084 | 33,731 | ||||||||||||||||||||||||||||||||
Profit-sharing revenue | 3,535 | 1,587 | 1,948 | 11,285 | 7,877 | 3,408 | ||||||||||||||||||||||||||||||||
Policy fee and installment fee revenue | 4,051 | 2,719 | 1,332 | 11,086 | 5,112 | 5,974 | ||||||||||||||||||||||||||||||||
Consulting and service fee revenue | 720 | 1,111 | (391) | 2,228 | 2,337 | (109) | ||||||||||||||||||||||||||||||||
Other income | 2,411 | 1,049 | 1,362 | 4,321 | 1,612 | 2,709 | ||||||||||||||||||||||||||||||||
Total commissions and fees | $ | 65,843 | $ | 38,383 | $ | 27,460 | $ | 171,270 | $ | 101,280 | $ | 69,990 |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
|||||||||||||||||||||||||
(in thousands, except percentages) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Commissions and fees
|
$ | 65,843 | $ | 38,383 | $ | 171,270 | $ | 101,280 | ||||||||||||||||||
Net income (loss)
|
$ | (7,615) | $ | (2,306) | $ | (10,767) | $ | 4,477 | ||||||||||||||||||
Adjustments to net income (loss): | ||||||||||||||||||||||||||
Amortization expense | 5,185 | 3,082 | 13,231 | 6,793 | ||||||||||||||||||||||
Change in fair value of contingent consideration | 6,455 | 535 | 12,697 | (3,222) | ||||||||||||||||||||||
Share-based compensation | 2,240 | 382 | 5,357 | 773 | ||||||||||||||||||||||
Interest expense, net | 922 | 3,785 | 2,554 | 8,998 | ||||||||||||||||||||||
Depreciation expense | 258 | 184 | 663 | 460 | ||||||||||||||||||||||
Transaction-related Partnership expenses | 2,904 | 500 | 6,772 | 1,535 | ||||||||||||||||||||||
Severance related to Partnership activity | (324) | — | 89 | 300 | ||||||||||||||||||||||
Capital related expenses | — | 1,124 | 1,000 | 2,214 | ||||||||||||||||||||||
Income tax provision | — | — | 12 | — | ||||||||||||||||||||||
Other | 899 | 92 | 1,733 | 391 | ||||||||||||||||||||||
Adjusted EBITDA (1)
|
$ | 10,924 | $ | 7,378 | $ | 33,341 | $ | 22,719 | ||||||||||||||||||
Adjusted EBITDA Margin | 17 | % | 19 | % | 19 | % | 22 | % |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
|||||||||||||||||||||||||
(in thousands, except percentages)
|
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Commissions and fees
|
$ | 65,843 | $ | 38,383 | $ | 171,270 | $ | 101,280 | ||||||||||||||||||
Partnership commissions and fees (1)
|
(19,637) | (17,520) | (54,569) | (36,749) | ||||||||||||||||||||||
Organic Revenue | $ | 46,206 | $ | 20,863 | $ | 116,701 | $ | 64,531 | ||||||||||||||||||
Organic Revenue Growth (2)
|
$ | 7,809 | $ | 2,297 | $ | 15,393 | $ | 5,479 | ||||||||||||||||||
Organic Revenue Growth % (2)
|
20 | % | 12 | % | 15 | % | 9 | % |
(in thousands, except per share data)
|
For the Three Months Ended September 30, 2020 | For the Nine Months Ended September 30, 2020 | ||||||||||||
Net loss attributable to BRP Group, Inc. | $ | (3,268) | $ | (5,388) | ||||||||||
Net loss attributable to noncontrolling interests | (4,347) | (5,379) | ||||||||||||
Amortization expense | 5,185 | 13,231 | ||||||||||||
Change in fair value of contingent consideration
|
6,455 | 12,697 | ||||||||||||
Share-based compensation | 2,240 | 5,357 | ||||||||||||
Transaction-related Partnership expenses | 2,904 | 6,772 | ||||||||||||
Capital related expenses | — | 1,000 | ||||||||||||
Amortization of deferred financing costs | 189 | 384 | ||||||||||||
Severance related to Partnership activity | (324) | 89 | ||||||||||||
Other | 899 | 1,733 | ||||||||||||
Adjusted pre-tax income | 9,933 | 30,496 | ||||||||||||
Adjusted income taxes (1)
|
983 | 3,019 | ||||||||||||
Adjusted Net Income | $ | 8,950 | $ | 27,477 | ||||||||||
Weighted-average shares of Class A common stock outstanding - diluted | 33,098 | 24,371 | ||||||||||||
Dilutive effect of unvested restricted shares of Class A common stock | 759 | 483 | ||||||||||||
Exchange of Class B shares (2)
|
45,288 | 44,767 | ||||||||||||
Adjusted dilutive weighted-average shares outstanding | 79,145 | 69,621 | ||||||||||||
Adjusted Diluted EPS | $ | 0.11 | $ | 0.39 | ||||||||||
Diluted loss per share | $ | (0.10) | $ | (0.22) | ||||||||||
Effect of exchange of Class B shares and net loss attributable to noncontrolling interests per share | — | 0.07 | ||||||||||||
Other adjustments to net loss per share | 0.22 | 0.58 | ||||||||||||
Adjusted income taxes per share | (0.01) | (0.04) | ||||||||||||
Adjusted Diluted EPS | $ | 0.11 | $ | 0.39 |
Commissions and Fees by Operating Group (in thousands) | |||||||||||||||||||||||||||||||||||||||||
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Variance | 2020 | 2019 | Variance | ||||||||||||||||||||||||||||||||||||
Operating Group | Amount | Percent of Business | Amount | Percent of Business | Amount | % | Amount | Percent of Business | Amount | Percent of Business | Amount | % | |||||||||||||||||||||||||||||
Middle Market | $ | 26,561 | 40 | % | $ | 12,836 | 33 | % | $ | 13,725 | 107 | % | $ | 69,311 | 40 | % | $ | 41,481 | 41 | % | $ | 27,830 | 67 | % | |||||||||||||||||
Specialty | 27,486 | 42 | % | 16,732 | 44 | % | 10,754 | 64 | % | 64,358 | 38 | % | 32,497 | 32 | % | 31,861 | 98 | % | |||||||||||||||||||||||
MainStreet | 7,905 | 12 | % | 6,642 | 17 | % | 1,263 | 19 | % | 23,917 | 14 | % | 18,942 | 19 | % | 4,975 | 26 | % | |||||||||||||||||||||||
Medicare | 4,101 | 6 | % | 2,173 | 6 | % | 1,928 | 89 | % | 13,894 | 8 | % | 8,360 | 8 | % | 5,534 | 66 | % | |||||||||||||||||||||||
Corporate and Other
|
(210) | — | % | — | — | % | (210) | — | % | (210) | — | % | — | — | % | (210) | — | % | |||||||||||||||||||||||
$ | 65,843 | $ | 38,383 | $ | 27,460 | $ | 171,270 | $ | 101,280 | $ | 69,990 |
Commissions, Employee Compensation and Benefits by Operating Group (in thousands) | |||||||||||||||||||||||||||||||||||||||||
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Variance | 2020 | 2019 | Variance | ||||||||||||||||||||||||||||||||||||
Operating Group | Amount | Percent of Business | Amount | Percent of Business | Amount | % | Amount | Percent of Business | Amount | Percent of Business | Amount | % | |||||||||||||||||||||||||||||
Middle Market | $ | 18,070 | 37 | % | $ | 9,203 | 34 | % | $ | 8,867 | 96 | % | $ | 44,153 | 36 | % | $ | 26,956 | 40 | % | $ | 17,197 | 64 | % | |||||||||||||||||
Specialty | 19,993 | 41 | % | 11,836 | 44 | % | 8,157 | 69 | % | 48,124 | 39 | % | 23,694 | 35 | % | 24,430 | 103 | % | |||||||||||||||||||||||
MainStreet | 4,496 | 9 | % | 3,915 | 15 | % | 581 | 15 | % | 13,268 | 11 | % | 10,284 | 15 | % | 2,984 | 29 | % | |||||||||||||||||||||||
Medicare | 2,455 | 5 | % | 1,180 | 4 | % | 1,275 | 108 | % | 7,686 | 6 | % | 4,170 | 6 | % | 3,516 | 84 | % | |||||||||||||||||||||||
Corporate and Other
|
3,455 | 7 | % | 654 | 2 | % | 2,801 | n/m | 9,049 | 7 | % | 1,964 | 3 | % | 7,085 | n/m | |||||||||||||||||||||||||
$ | 48,469 | $ | 26,788 | $ | 21,681 | $ | 122,280 | $ | 67,068 | $ | 55,212 |
Other Operating Expenses by Operating Group (in thousands) | |||||||||||||||||||||||||||||||||||||||||
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Variance | 2020 | 2019 | Variance | ||||||||||||||||||||||||||||||||||||
Operating Group | Amount | Percent of Business | Amount | Percent of Business | Amount | % | Amount | Percent of Business | Amount | Percent of Business | Amount | % | |||||||||||||||||||||||||||||
Middle Market | $ | 4,046 | 33 | % | $ | 2,257 | 36 | % | $ | 1,789 | 79 | % | $ | 9,665 | 32 | % | $ | 6,254 | 37 | % | $ | 3,411 | 55 | % | |||||||||||||||||
Specialty | 1,658 | 14 | % | 848 | 13 | % | 810 | 96 | % | 4,454 | 15 | % | 2,256 | 14 | % | 2,198 | 97 | % | |||||||||||||||||||||||
MainStreet | 1,226 | 10 | % | 1,014 | 16 | % | 212 | 21 | % | 3,233 | 11 | % | 2,865 | 17 | % | 368 | 13 | % | |||||||||||||||||||||||
Medicare | 952 | 8 | % | 505 | 8 | % | 447 | 89 | % | 2,739 | 9 | % | 1,390 | 8 | % | 1,349 | 97 | % | |||||||||||||||||||||||
Corporate and Other
|
4,264 | 35 | % | 1,696 | 27 | % | 2,568 | 151 | % | 10,486 | 34 | % | 3,946 | 24 | % | 6,540 | 166 | % | |||||||||||||||||||||||
$ | 12,146 | $ | 6,320 | $ | 5,826 | $ | 30,577 | $ | 16,711 | $ | 13,866 |
Change in Fair Value of Contingent Consideration by Operating Group (in thousands) | |||||||||||||||||||||||||||||||||||||||||
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Variance | 2020 | 2019 | Variance | ||||||||||||||||||||||||||||||||||||
Operating Group | Amount | Percent of Business | Amount | Percent of Business | Amount | % | Amount | Percent of Business | Amount | Percent of Business | Amount | % | |||||||||||||||||||||||||||||
Middle Market | $ | 1,056 | 16 | % | $ | 445 | 83 | % | $ | 611 | 137 | % | $ | (666) | (5) | % | $ | (3,789) | 118 | % | $ | 3,123 | (82) | % | |||||||||||||||||
Specialty | 4,732 | 73 | % | (199) | (37) | % | 4,931 | n/m | 10,850 | 85 | % | 578 | (18) | % | 10,272 | n/m | |||||||||||||||||||||||||
MainStreet | 501 | 8 | % | 289 | 54 | % | 212 | 73 | % | 2,555 | 20 | % | 320 | (10) | % | 2,235 | n/m | ||||||||||||||||||||||||
Medicare | 166 | 3 | % | — | — | % | 166 | — | % | (42) | — | % | (331) | 10 | % | 289 | (87) | % | |||||||||||||||||||||||
$ | 6,455 | $ | 535 | $ | 5,920 | $ | 12,697 | $ | (3,222) | $ | 15,919 |
Total Net Leverage Ratio | Applicable Margin for Eurodollar Loans | Applicable Margin for Alternate Base Rate Loans | ||||||||||||
< 2.50x | 200 bps | 100 bps | ||||||||||||
≥ 2.50x < 3.00x | 225 bps | 125 bps | ||||||||||||
≥ 3.00x < 3.75x | 250 bps | 150 bps | ||||||||||||
≥ 3.75x | 300 bps | 200 bps |
Payments Due by Period | |||||||||||||||||||||||||||||
(in thousands) | Total |
Less than
1 year |
1-3 years | 3-5 years |
More than
5 years |
||||||||||||||||||||||||
Operating leases (1)
|
$ | 46,394 | $ | 7,139 | $ | 12,773 | $ | 10,476 | $ | 16,006 | |||||||||||||||||||
Debt obligations payable (2)
|
517,892 | 16,750 | 33,500 | 33,500 | 434,142 | ||||||||||||||||||||||||
Maximum future acquisition contingency payments (3)
|
233,574 | 57,572 | 164,902 | 11,100 | — | ||||||||||||||||||||||||
Total | $ | 797,860 | $ | 81,461 | $ | 211,175 | $ | 55,076 | $ | 450,148 |
For the Nine Months
Ended September 30, |
|||||||||||||||||
(in thousands) | 2020 | 2019 | Variance | ||||||||||||||
Net cash provided by operating activities | $ | 30,771 | $ | 14,569 | $ | 16,202 | |||||||||||
Net cash used in investing activities | (235,233) | (101,822) | (133,411) | ||||||||||||||
Net cash provided by financing activities | 191,389 | 96,768 | 94,621 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | (13,073) | 9,515 | (22,588) | ||||||||||||||
Cash and cash equivalents and restricted cash at beginning of period | 71,071 | 7,995 | 63,076 | ||||||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | 57,998 | $ | 17,510 | $ | 40,488 |
Total Number of Shares Purchased(1)
|
Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Value that may yet be Purchased under the Plans or Programs | ||||||||||||||||||||
July 1, 2020 to July 31, 2020 | — | $ | — | — | $ | — | |||||||||||||||||
August 1, 2020 to August 31, 2020 | 1,458 | 17.45 | — | — | |||||||||||||||||||
September 1, 2020 to September 30, 2020 | — | — | — | — | |||||||||||||||||||
Total | 1,458 | $ | 17.45 | — | $ | — |
Exhibit No. | Description of Exhibit | |||||||
3.1 | ||||||||
10.1 | ||||||||
10.2 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32* | ||||||||
101.INS* |
XBRL Instance Document
|
|||||||
101.SCH* |
XBRL Taxonomy Extension Schema Document
|
|||||||
101.CAL* |
XBRL Taxonomy Extension Calculation Linkbase Document
|
|||||||
101.DEF* |
XBRL Taxonomy Extension Definition Linkbase Document
|
|||||||
101.LAB* |
XBRL Taxonomy Extension Label Linkbase Document
|
|||||||
101.PRE* |
XBRL Taxonomy Extension Presentation Linkbase Document
|
|||||||
104* |
Cover Page Interactive Data File (formatted in inline XBRL and included in Exhibit 101)
|
BRP GROUP, INC. | ||||||||
Date: November 12, 2020 | By: | /s/ Trevor L. Baldwin | ||||||
Trevor L. Baldwin | ||||||||
Chief Executive Officer
|
||||||||
Date: November 12, 2020 | By: | /s/ Kristopher A. Wiebeck | ||||||
Kristopher A. Wiebeck | ||||||||
Chief Financial Officer
|
/s/ Trevor L. Baldwin | ||
Trevor L. Baldwin | ||
Chief Executive Officer | ||
Date: November 12, 2020 |
/s/ Kristopher A. Wiebeck | ||
Kristopher A. Wiebeck | ||
Chief Financial Officer | ||
Date: November 12, 2020 |
Date: November 12, 2020 | By: | /s/ Trevor L. Baldwin | ||||||
Trevor L. Baldwin | ||||||||
Chief Executive Officer | ||||||||
Date: November 12, 2020 | By: | /s/ Kristopher A. Wiebeck | ||||||
Kristopher A. Wiebeck | ||||||||
Chief Financial Officer |