x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
|
|
|
For
the quarterly period ended September 30, 2007
|
|
|
|
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
(State
or other jurisdiction of incorporation or organization)
220
South Ridgewood Avenue, Daytona Beach, FL
(Address
of principal executive offices)
|
®
|
59-0864469
(I.R.S.
Employer Identification Number)
32114
(Zip
Code)
|
|
PAGE
NO.
|
||
|
|
||
|
|||
|
|
|
|
|
|
||
|
|
3
|
|
|
|
4
|
|
|
|
5
|
|
|
|
6
|
|
|
17
|
||
|
31
|
||
|
32
|
||
|
|
|
|
|
|||
|
|
|
|
|
33
|
||
|
33
|
||
|
34
|
||
|
|
|
|
34
|
|||
|
|
(in
thousands, except per share data)
|
For
the three months
ended
September 30,
|
For
the nine months
ended
September 30,
|
||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
REVENUES
|
||||||||||||||||
Commissions
and fees
|
$ |
225,421
|
$ |
208,558
|
$ |
701,456
|
$ |
653,900
|
||||||||
Investment
income
|
3,286
|
3,218
|
27,855
|
8,383
|
||||||||||||
Other
income, net
|
8,577
|
189
|
13,130
|
1,071
|
||||||||||||
Total
revenues
|
237,284
|
211,965
|
742,441
|
663,354
|
||||||||||||
EXPENSES
|
||||||||||||||||
Employee
compensation and benefits
|
110,491
|
100,821
|
333,937
|
304,731
|
||||||||||||
Non-cash
stock-based compensation
|
1,491
|
837
|
4,327
|
4,601
|
||||||||||||
Other
operating expenses
|
32,928
|
29,502
|
96,409
|
90,605
|
||||||||||||
Amortization
|
10,331
|
9,089
|
29,798
|
27,067
|
||||||||||||
Depreciation
|
3,213
|
2,922
|
9,492
|
8,302
|
||||||||||||
Interest
|
3,395
|
3,229
|
10,445
|
10,080
|
||||||||||||
Total
expenses
|
161,849
|
146,400
|
484,408
|
445,386
|
||||||||||||
Income
before income taxes
|
75,435
|
65,565
|
258,033
|
217,968
|
||||||||||||
Income
taxes
|
29,219
|
25,295
|
100,078
|
83,241
|
||||||||||||
Net
income
|
$ |
46,216
|
$ |
40,270
|
$ |
157,955
|
$ |
134,727
|
||||||||
Net
income per share:
|
||||||||||||||||
Basic
|
$ |
0.33
|
$ |
0.29
|
$ |
1.13
|
$ |
0.97
|
||||||||
Diluted
|
$ |
0.33
|
$ |
0.29
|
$ |
1.12
|
$ |
0.96
|
||||||||
Weighted
average number of shares outstanding:
|
||||||||||||||||
Basic
|
140,593
|
139,668
|
140,401
|
139,522
|
||||||||||||
Diluted
|
141,288
|
141,027
|
141,209
|
140,949
|
||||||||||||
Dividends
declared per share
|
$ |
0.06
|
$ |
0.05
|
$ |
0.18
|
$ |
0.15
|
(in
thousands, except per share data)
|
September
30,
2007
|
December
31,
2006
|
||||||
ASSETS
|
||||||||
Current
Assets:
|
||||||||
Cash
and cash equivalents
|
$ |
74,025
|
$ |
88,490
|
||||
Restricted
cash and investments
|
227,146
|
242,187
|
||||||
Short-term
investments
|
3,021
|
2,909
|
||||||
Premiums,
commissions and fees receivable
|
271,606
|
282,440
|
||||||
Other
current assets
|
35,217
|
32,180
|
||||||
Total
current assets
|
611,015
|
648,206
|
||||||
Fixed
assets, net
|
58,322
|
44,170
|
||||||
Goodwill
|
803,330
|
684,521
|
||||||
Amortizable
intangible assets, net
|
421,209
|
396,069
|
||||||
Investments
|
652
|
15,826
|
||||||
Other
assets
|
20,831
|
19,160
|
||||||
Total
assets
|
$ |
1,915,359
|
$ |
1,807,952
|
||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
Current
Liabilities:
|
||||||||
Premiums
payable to insurance companies
|
$ |
399,331
|
$ |
435,449
|
||||
Premium
deposits and credits due customers
|
38,900
|
33,273
|
||||||
Accounts
payable
|
21,127
|
17,854
|
||||||
Accrued
expenses
|
72,883
|
86,009
|
||||||
Current
portion of long-term debt
|
11,574
|
18,082
|
||||||
Total
current liabilities
|
543,815
|
590,667
|
||||||
Long-term
debt
|
225,403
|
226,252
|
||||||
Deferred
income taxes, net
|
60,596
|
49,721
|
||||||
Other
liabilities
|
12,560
|
11,967
|
||||||
Shareholders'
Equity:
|
||||||||
Common
stock, par value $0.10 per share;
|
||||||||
authorized
280,000 shares; issued and
|
||||||||
outstanding
140,709 at 2007 and 140,016 at 2006
|
14,071
|
14,002
|
||||||
Additional
paid-in capital
|
230,520
|
210,543
|
||||||
Retained
earnings
|
828,336
|
695,656
|
||||||
Accumulated
other comprehensive income, net of related income tax
|
||||||||
effect
of $34 at 2007 and $5,359 at 2006
|
58
|
9,144
|
||||||
Total
shareholders' equity
|
1,072,985
|
929,345
|
||||||
Total
liabilities and shareholders' equity
|
$ |
1,915,359
|
$ |
1,807,952
|
For
the nine months
ended
September 30,
|
||||||||
(in
thousands)
|
2007
|
2006
|
||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$ |
157,955
|
$ |
134,727
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Amortization
|
29,798
|
27,067
|
||||||
Depreciation
|
9,492
|
8,302
|
||||||
Non-cash
stock-based compensation
|
4,327
|
4,601
|
||||||
Deferred
income taxes
|
12,368
|
7,723
|
||||||
Net
gain on sales of investments, fixed
|
||||||||
assets and customer accounts
|
(30,198 | ) | (159 | ) | ||||
Changes
in operating assets and liabilities, net of effect
|
||||||||
from acquisitions and divestitures:
|
||||||||
Restricted
cash and investments decrease (increase)
|
15,041
|
(48,171 | ) | |||||
Premiums,
commissions and fees receivable decrease (increase)
|
13,623
|
(9,793 | ) | |||||
Other
assets decrease (increase)
|
4,107
|
(4,628 | ) | |||||
Premiums
payable to insurance companies (decrease) increase
|
(42,596 | ) |
42,088
|
|||||
Premium
deposits and credits due customers increase
|
5,072
|
8,681
|
||||||
Accounts
payable increase (decrease)
|
2,912
|
(1,525 | ) | |||||
Accrued
expenses (decrease)
|
(14,701 | ) | (7,104 | ) | ||||
Other
liabilities (decrease) increase
|
(710 | ) |
418
|
|||||
Net
cash provided by operating activities
|
166,490
|
162,227
|
||||||
Cash
flows from investing activities:
|
||||||||
Additions
to fixed assets
|
(24,848 | ) | (12,322 | ) | ||||
Payments
for businesses acquired, net of cash acquired
|
(148,365 | ) | (142,194 | ) | ||||
Proceeds
from sales of fixed assets and customer accounts
|
6,059
|
922
|
||||||
Purchases
of investments
|
(2,629 | ) | (78 | ) | ||||
Proceeds
from sales of investments
|
21,594
|
118
|
||||||
Net
cash used in investing activities
|
(148,189 | ) | (153,554 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Payments
on long-term debt
|
(23,351 | ) | (76,726 | ) | ||||
Borrowings
on revolving credit facility
|
18,130
|
40,000
|
||||||
Payments
on revolving credit facility
|
(18,130 | ) |
-
|
|||||
Income
tax benefit from issuance of common stock
|
4,539
|
-
|
||||||
Issuances
of common stock for employee stock benefit plans
|
11,321
|
11,071
|
||||||
Cash
dividends paid
|
(25,275 | ) | (20,943 | ) | ||||
Net
cash used in financing activities
|
(32,766 | ) | (46,598 | ) | ||||
Net
decrease in cash and cash equivalents
|
(14,465 | ) | (37,925 | ) | ||||
Cash
and cash equivalents at beginning of period
|
88,490
|
100,580
|
||||||
Cash
and cash equivalents at end of period
|
$ |
74,025
|
$ |
62,655
|
|
|
For
the three months
ended
September 30,
|
For
the nine months
ended
September 30,
|
|||||||||||||||
(in
thousands, except per share data)
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Net
income
|
$ |
46,216
|
$ |
40,270
|
$ |
157,955
|
$ |
134,727
|
||||||||
Weighted
average number of common shares
|
||||||||||||||||
outstanding
|
140,593
|
139,668
|
140,401
|
139,522
|
||||||||||||
Dilutive
effect of stock options using the
|
||||||||||||||||
treasury
stock method
|
695
|
1,359
|
808
|
1,427
|
||||||||||||
Weighted
average number of shares
|
||||||||||||||||
outstanding
|
141,288
|
141,027
|
141,209
|
140,949
|
||||||||||||
Net
income per share:
|
||||||||||||||||
Basic
|
$ |
0.33
|
$ |
0.29
|
$ |
1.13
|
$ |
0.97
|
||||||||
Diluted
|
$ |
0.33
|
$ |
0.29
|
$ |
1.12
|
$ |
0.96
|
(in
thousands)
Name
|
Business
Segment
|
2007
Date
of
Acquisition
|
Net
Cash
Paid
|
Notes
Payable
|
Recorded
Purchase
Price
|
|||||||||
ALCOS,
Inc.
|
Retail
|
March
1
|
$ |
30,906
|
$ |
3,563
|
$ |
34,469
|
||||||
Grinspec,
Inc.
|
Retail
|
April
1
|
31,939
|
-
|
31,939
|
|||||||||
Sobel
Affiliates, Inc.
|
Retail
|
April
1
|
33,047
|
-
|
33,047
|
|||||||||
The
Combined Group, Inc.
|
Wholesale
Brokerage
|
August
1
|
24,046
|
-
|
24,046
|
|||||||||
Other
|
Various
|
Various
|
24,084
|
1,398
|
25,482
|
|||||||||
Total
|
$ |
144,022
|
$ |
4,961
|
$ |
148,983
|
(in
thousands)
|
ALCOS
|
Grinspec
|
Sobel
|
Combined
|
Other
|
Total
|
||||||||||||||||||
Fiduciary
cash
|
$ |
627
|
$ |
-
|
$ |
-
|
$ |
2,686
|
$ |
716
|
$ |
4,029
|
||||||||||||
Other
current assets
|
1,224
|
669
|
286
|
-
|
800
|
2,979
|
||||||||||||||||||
Fixed
assets
|
720
|
-
|
50
|
212
|
214
|
1,196
|
||||||||||||||||||
Purchased
customer accounts
|
10,046
|
12,498
|
13,129
|
7,448
|
11,710
|
54,831
|
||||||||||||||||||
Noncompete
agreements
|
130
|
-
|
31
|
66
|
210
|
437
|
||||||||||||||||||
Goodwill
|
26,863
|
19,235
|
19,653
|
16,320
|
17,817
|
99,888
|
||||||||||||||||||
Other
Assets
|
115
|
-
|
-
|
-
|
10
|
125
|
||||||||||||||||||
Total
assets acquired
|
39,725
|
32,402
|
33,149
|
26,732
|
31,477
|
163,485
|
||||||||||||||||||
Other
current liabilities
|
(2,173 | ) | (463 | ) | (102 | ) | (1,383 | ) | (5,246 | ) | (9,367 | ) | ||||||||||||
Deferred
income taxes
|
(3,083 | ) |
-
|
-
|
-
|
(749 | ) | (3,832 | ) | |||||||||||||||
Other
liabilities
|
-
|
-
|
-
|
(1,303 | ) |
-
|
(1,303 | ) | ||||||||||||||||
Total
liabilities assumed
|
(5,256 | ) | (463 | ) | (102 | ) | (2,686 | ) | (5,995 | ) | (14,502 | ) | ||||||||||||
Net
assets acquired
|
$ |
34,469
|
$ |
31,939
|
$ |
33,047
|
$ |
24,046
|
$ |
25,482
|
$ |
148,983
|
For
the three months
|
For
the nine months
|
|||||||||||||||
(UNAUDITED)
|
ended
September 30,
|
ended
September 30,
|
||||||||||||||
(in
thousands, except per share data)
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Total
revenues
|
$ |
239,671
|
$ |
230,359
|
$ |
766,810
|
$ |
719,967
|
||||||||
Income
before income taxes
|
76,151
|
71,103
|
265,573
|
234,853
|
||||||||||||
Net
income
|
46,654
|
43,672
|
162,571
|
145,164
|
||||||||||||
Net
income per share:
|
||||||||||||||||
Basic
|
$ |
0.33
|
$ |
0.31
|
$ |
1.16
|
$ |
1.04
|
||||||||
Diluted
|
$ |
0.33
|
$ |
0.31
|
$ |
1.15
|
$ |
1.03
|
||||||||
Weighted
average number of shares outstanding:
|
||||||||||||||||
Basic
|
140,593
|
139,668
|
140,401
|
139,522
|
||||||||||||
Diluted
|
141,288
|
141,027
|
141,209
|
140,949
|
(in
thousands)
|
2006
|
Net
|
Recorded
|
|||||||||||
Business
|
Date
of
|
Cash
|
Notes
|
Purchase
|
||||||||||
Name
|
Segment
|
Acquisition
|
Paid
|
Payable
|
Price
|
|||||||||
Axiom
Intermediaries, LLC
|
Wholesale
Brokerage
|
January
1
|
$ |
60,333
|
$ |
-
|
$ |
60,333
|
||||||
Delaware Valley
Underwriting Agency, Inc.
|
Wholesale
Brokerage/National Programs
|
September
30
|
48,000
|
c
|
48,000
|
|||||||||
Other
|
Various
|
Various
|
30,767
|
3,582
|
34,349
|
|||||||||
Total
|
$ |
139,100
|
$ |
3,582
|
$ |
142,682
|
(in
thousands)
|
Axiom
|
DVUA
|
Other
|
Total
|
||||||||||||
Fiduciary
cash
|
$ |
9,598
|
$ |
-
|
$ |
-
|
$ |
9,598
|
||||||||
Other
current assets
|
445
|
-
|
100
|
545
|
||||||||||||
Fixed
assets
|
435
|
648
|
406
|
1,489
|
||||||||||||
Purchased
customer accounts
|
14,022
|
25,549
|
18,047
|
57,618
|
||||||||||||
Noncompete
agreements
|
31
|
52
|
443
|
526
|
||||||||||||
Goodwill
|
45,860
|
21,751
|
16,197
|
83,808
|
||||||||||||
Total
assets acquired
|
70,391
|
48,000
|
35,193
|
153,584
|
||||||||||||
Other
current liabilities
|
(10,058 | ) |
-
|
(652 | ) | (10,710 | ) | |||||||||
Other
liabilities
|
-
|
-
|
(192 | ) | (192 | ) | ||||||||||
Total
liabilities assumed
|
(10,058 | ) |
-
|
(844 | ) | (10,902 | ) | |||||||||
Net
assets acquired
|
$ |
60,333
|
$ |
48,000
|
$ |
34,349
|
$ |
142,682
|
For
the three months
|
For
the nine months
|
|||||||||||||||
(UNAUDITED)
|
ended
September 30,
|
ended
September 30,
|
||||||||||||||
(in
thousands, except per share data)
|
2006
|
2005
|
2006
|
2005
|
||||||||||||
Total
revenues
|
$ |
217,612
|
$ |
203,758
|
$ |
686,865
|
$ |
630,900
|
||||||||
Income
before income taxes
|
67,619
|
60,134
|
226,317
|
200,875
|
||||||||||||
Net
income
|
41,532
|
37,559
|
139,887
|
123,573
|
||||||||||||
Net
income per share:
|
||||||||||||||||
Basic
|
$ |
0.30
|
$ |
0.27
|
$ |
1.00
|
$ |
0.89
|
||||||||
Diluted
|
$ |
0.29
|
$ |
0.27
|
$ |
0.99
|
$ |
0.89
|
||||||||
Weighted
average number of shares outstanding:
|
||||||||||||||||
Basic
|
139,668
|
138,484
|
139,522
|
138,374
|
||||||||||||
Diluted
|
141,027
|
139,638
|
140,949
|
139,504
|
|
National
|
Wholesale
|
|
|
||||||||||||||||
(in
thousands)
|
Retail
|
Programs
|
Brokerage
|
Services
|
Total
|
|||||||||||||||
Balance
as of January 1, 2007
|
$ |
329,504
|
$ |
142,329
|
$ |
209,865
|
$ |
2,823
|
$ |
684,521
|
||||||||||
Goodwill
of acquired businesses
|
89,033
|
4,527
|
24,802
|
447
|
118,809
|
|||||||||||||||
Goodwill
disposed of relating to sales of businesses
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Balance
as of September 30, 2007
|
$ |
418,537
|
$ |
146,856
|
$ |
234,667
|
$ |
3,270
|
$ |
803,330
|
September
30, 2007
|
December
31, 2006
|
|||||||||||||||||||||||||||||||
Weighted
|
Weighted
|
|||||||||||||||||||||||||||||||
Gross
|
Net
|
Average
|
Gross
|
Net
|
Average
|
|||||||||||||||||||||||||||
Carrying
|
Accumulated
|
Carrying
|
Life
|
Carrying
|
Accumulated
|
Carrying
|
Life
|
|||||||||||||||||||||||||
(in
thousands)
|
Value
|
Amortization
|
Value
|
(years)
|
Value
|
Amortization
|
Value
|
(years)
|
||||||||||||||||||||||||
Purchased
customer accounts
|
$ |
596,069
|
$ | (177,679 | ) | $ |
418,390
|
14.9
|
$ |
541,967
|
$ | (149,764 | ) | $ |
392,203
|
14.9
|
||||||||||||||||
Noncompete
agreements
|
26,074
|
(23,255 | ) |
2,819
|
7.7
|
25,589
|
(21,723 | ) |
3,866
|
7.7
|
||||||||||||||||||||||
Total
|
$ |
622,143
|
$ | (200,934 | ) | $ |
421,209
|
$ |
567,556
|
$ | (171,487 | ) | $ |
396,069
|
September
30, 2007
|
December
31, 2006
|
|||||||||||||||
Carrying
Value
|
Carrying
Value
|
|||||||||||||||
(in
thousands)
|
Current
|
Non-
Current
|
Current
|
Non-
Current
|
||||||||||||
Available-for-sale
marketable equity securities
|
$ |
76
|
$ |
-
|
$ |
240
|
$ |
15,181
|
||||||||
Non-marketable
equity securities and certificates of deposit
|
2,945
|
652
|
2,669
|
645
|
||||||||||||
Total
investments
|
$ |
3,021
|
$ |
652
|
$ |
2,909
|
$ |
15,826
|
(in
thousands)
|
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
||||||||||||
Marketable
equity securities:
|
||||||||||||||||
September
30, 2007
|
$ |
52
|
$ |
24
|
$ |
-
|
$ |
76
|
||||||||
December
31, 2006
|
$ |
550
|
$ |
14,871
|
$ |
-
|
$ |
15,421
|
(in
thousands)
|
Proceeds
|
Gross
Realized
Gains
|
Gross
Realized
Losses
|
|||||||||
For
the three months ended:
|
||||||||||||
September
30, 2007
|
$ |
2,112
|
$ |
1
|
$ |
-
|
||||||
September
30, 2006
|
$ |
106
|
$ |
13
|
$ |
-
|
||||||
For
the nine months ended:
|
||||||||||||
September
30, 2007
|
$ |
21,594
|
$ |
18,760
|
$ | (500 | ) | |||||
September
30, 2006
|
$ |
118
|
$ |
25
|
$ |
-
|
(in
thousands)
|
2007
|
2006
|
||||||
Unsecured
senior notes
|
$ |
225,000
|
$ |
225,000
|
||||
Acquisition
notes payable
|
8,536
|
6,310
|
||||||
Term
loan agreements
|
3,214
|
12,857
|
||||||
Revolving
credit facility
|
-
|
-
|
||||||
Other
notes payable
|
227
|
167
|
||||||
Total
debt
|
236,977
|
244,334
|
||||||
Less
current portion
|
(11,574 | ) | (18,082 | ) | ||||
Long-term
debt
|
$ |
225,403
|
$ |
226,252
|
(in
thousands)
|
For
the nine months
ended
September 30,
|
|||||||
2007
|
2006
|
|||||||
Cash
paid during the period for:
|
||||||||
Interest
|
$ |
13,054
|
$ |
13,821
|
||||
Income
taxes
|
$ |
74,132
|
$ |
78,469
|
For
the nine months
ended
September 30,
|
||||||||
(in
thousands)
|
2007
|
2006
|
||||||
Unrealized
holding (loss) gain on available-for-sale securities, net of tax
benefit
of $5,305 for 2007; net of tax effect of $1,245 for 2006
|
$ | (9,051 | ) | $ |
2,106
|
|||
Net
(loss) gain on cash-flow hedging derivative, net of tax benefit
of $20 for
2007, net of tax effect of $9 for 2006
|
$ | (35 | ) | $ |
16
|
|||
Notes
payable issued or assumed for purchased customer accounts
|
$ |
15,857
|
$ |
36,238
|
||||
Notes
received on the sale of fixed assets and customer accounts
|
$ |
8,580
|
$ |
2,135
|
For
the three months
|
For
the nine months
|
|||||||||||||||
ended
September 30,
|
ended
September 30,
|
|||||||||||||||
(in
thousands)
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Net
income
|
$ |
46,216
|
$ |
40,270
|
$ |
157,955
|
$ |
134,727
|
||||||||
Net
unrealized holding (loss) gain on
available-for-sale
securities
|
(7 | ) |
1,330
|
(9,051 | ) |
2,106
|
||||||||||
Net
(loss) gain on cash-flow hedging derivative
|
(9 | ) | (58 | ) | (35 | ) |
16
|
|||||||||
Comprehensive
income
|
$ |
46,200
|
$ |
41,542
|
$ |
148,869
|
$ |
136,849
|
For
the nine months ended September 30, 2007
|
||||||||||||||||||||||||
National
|
Wholesale
|
|||||||||||||||||||||||
(in
thousands)
|
Retail
|
Programs
|
Brokerage
|
Services
|
Other
|
Total
|
||||||||||||||||||
Total
revenues
|
$ |
434,234
|
$ |
113,253
|
$ |
142,544
|
$ |
27,409
|
$ |
25,001
|
$ |
742,441
|
||||||||||||
Investment
income
|
164
|
377
|
2,262
|
25
|
25,027
|
27,855
|
||||||||||||||||||
Amortization
|
15,885
|
6,779
|
6,759
|
346
|
29
|
29,798
|
||||||||||||||||||
Depreciation
|
4,255
|
2,088
|
1,974
|
420
|
755
|
9,492
|
||||||||||||||||||
Interest
|
15,217
|
7,694
|
14,197
|
526
|
(27,189 | ) |
10,445
|
|||||||||||||||||
Income
before income taxes
|
133,320
|
31,548
|
29,147
|
7,094
|
56,924
|
258,033
|
||||||||||||||||||
Total
assets
|
1,285,096
|
553,453
|
649,610
|
38,926
|
(611,726 | ) |
1,915,359
|
|||||||||||||||||
Capital
expenditures
|
4,591
|
1,516
|
2,425
|
283
|
16,033
|
24,848
|
For
the nine months ended September 30, 2006
|
||||||||||||||||||||||||
National
|
Wholesale
|
|||||||||||||||||||||||
(in
thousands)
|
Retail
|
Programs
|
Brokerage
|
Services
|
Other
|
Total
|
||||||||||||||||||
Total
revenues
|
$ |
395,812
|
$ |
113,149
|
$ |
125,110
|
$ |
23,893
|
$ |
5,390
|
$ |
663,354
|
||||||||||||
Investment
income
|
71
|
320
|
3,310
|
35
|
4,647
|
8,383
|
||||||||||||||||||
Amortization
|
14,507
|
6,458
|
5,848
|
220
|
34
|
27,067
|
||||||||||||||||||
Depreciation
|
4,251
|
1,697
|
1,464
|
383
|
507
|
8,302
|
||||||||||||||||||
Interest
|
14,372
|
7,768
|
13,568
|
275
|
(25,903 | ) |
10,080
|
|||||||||||||||||
Income
before income taxes
|
114,845
|
35,383
|
24,351
|
6,030
|
37,359
|
217,968
|
||||||||||||||||||
Total
assets
|
1,082,425
|
564,337
|
617,665
|
31,578
|
(492,837 | ) |
1,803,168
|
|||||||||||||||||
Capital
expenditures
|
4,832
|
2,976
|
1,506
|
472
|
2,536
|
12,322
|
For
the three months
|
For
the nine months
|
|||||||||||||||||||||||
ended
September 30,
|
ended
September 30,
|
|||||||||||||||||||||||
%
|
%
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
REVENUES
|
||||||||||||||||||||||||
Commissions
and fees
|
$ |
216,546
|
$ |
206,466
|
4.9 | % | $ |
645,778
|
$ |
613,737
|
5.2 | % | ||||||||||||
Profit-sharing
contingent commissions
|
8,875
|
2,092
|
324.2 | % |
55,678
|
40,163
|
38.6 | % | ||||||||||||||||
Investment
income
|
3,286
|
3,218
|
2.1 | % |
27,855
|
8,383
|
232.3 | % | ||||||||||||||||
Other
income, net
|
8,577
|
189
|
NMF
|
13,130
|
1,071
|
NMF
|
||||||||||||||||||
Total
revenues
|
237,284
|
211,965
|
11.9 | % |
742,441
|
663,354
|
11.9 | % | ||||||||||||||||
EXPENSES
|
||||||||||||||||||||||||
Employee
compensation and benefits
|
110,491
|
100,821
|
9.6 | % |
333,937
|
304,731
|
9.6 | % | ||||||||||||||||
Non-cash
stock-based compensation
|
1,491
|
837
|
78.1 | % |
4,327
|
4,601
|
(6.0 | )% | ||||||||||||||||
Other
operating expenses
|
32,928
|
29,502
|
11.6 | % |
96,409
|
90,605
|
6.4 | % | ||||||||||||||||
Amortization
|
10,331
|
9,089
|
13.7 | % |
29,798
|
27,067
|
10.1 | % | ||||||||||||||||
Depreciation
|
3,213
|
2,922
|
10.0 | % |
9,492
|
8,302
|
14.3 | % | ||||||||||||||||
Interest
|
3,395
|
3,229
|
5.1 | % |
10,445
|
10,080
|
3.6 | % | ||||||||||||||||
Total
expenses
|
161,849
|
146,400
|
10.6 | % |
484,408
|
445,386
|
8.8 | % | ||||||||||||||||
Income
before income taxes
|
75,435
|
65,565
|
15.1 | % |
258,033
|
217,968
|
18.4 | % | ||||||||||||||||
Income
taxes
|
29,219
|
25,295
|
15.5 | % |
100,078
|
83,241
|
20.2 | % | ||||||||||||||||
NET
INCOME
|
$ |
46,216
|
$ |
40,270
|
14.8 | % | $ |
157,955
|
$ |
134,727
|
17.2 | % | ||||||||||||
Net
internal growth rate – core commissions and fees
|
(3.0 | )% | 5.2 | % | (1.9 | )% | 4.5 | % | ||||||||||||||||
Employee
compensation and benefits ratio
|
46.6 | % | 47.6 | % | 45.0 | % | 45.9 | % | ||||||||||||||||
Other
operating expenses ratio
|
13.9 | % | 13.9 | % | 13.0 | % | 13.7 | % | ||||||||||||||||
Capital
expenditures
|
$ |
4,848
|
$ |
3,226
|
$ |
24,848
|
$ |
12,322
|
||||||||||||||||
Total
assets at September 30, 2007 and 2006
|
$ |
1,915,359
|
$ |
1,803,168
|
2007
|
For
the three months
|
Total
|
Total
|
Less
|
Internal
|
|||||||||||||||||||
ended
September 30,
|
Net
|
Net
|
Acquisition
|
Net
|
||||||||||||||||||||
2007
|
2006
|
Change
|
Growth
%
|
Revenues
|
Growth
%
|
|||||||||||||||||||
Florida
Retail
|
$ |
39,286
|
$ |
43,871
|
$ | (4,585 | ) | (10.5 | )% | $ |
797
|
(12.3 | )% | |||||||||||
National
Retail
|
62,237
|
51,948
|
10,289
|
19.8 | % |
10,685
|
(0.8 | )% | ||||||||||||||||
Western
Retail
|
24,668
|
26,139
|
(1,471 | ) | (5.6 | )% |
75
|
(5.9 | )% | |||||||||||||||
Total
Retail(1)
|
126,191
|
121,958
|
4,233
|
3.5 | % |
11,557
|
(6.0 | )% | ||||||||||||||||
Professional
Programs
|
11,200
|
10,696
|
504
|
4.7 | % |
119
|
3.6 | % | ||||||||||||||||
Special
Programs
|
30,411
|
26,736
|
3,675
|
13.7 | % |
2,029
|
6.2 | % | ||||||||||||||||
Total
National Programs
|
41,611
|
37,432
|
4,179
|
11.2 | % |
2,148
|
5.4 | % | ||||||||||||||||
Wholesale
Brokerage
|
39,354
|
36,017
|
3,337
|
9.3 | % |
4,400
|
(3.0 | )% | ||||||||||||||||
Services
|
9,390
|
9,164
|
226
|
2.5 | % |
-
|
2.5 | % | ||||||||||||||||
Total
Core Commissions
and
Fees
|
$ |
216,546
|
$ |
204,571
|
$ |
11,975
|
5.9 | % | $ |
18,105
|
(3.0 | )% |
For
the three months
ended
September 30,
|
||||||||
2007
|
2006
|
|||||||
Total
core commissions and fees
|
$ |
216,546
|
$ |
204,571
|
||||
Profit-sharing
contingent commissions
|
8,875
|
2,092
|
||||||
Divested
business
|
-
|
1,895
|
||||||
Total
commission & fees
|
$ |
225,421
|
$ |
208,558
|
2006
|
For
the three months
|
Total
|
Total
|
Less
|
Internal
|
|||||||||||||||||||
ended
September 30,
|
Net
|
Net
|
Acquisition
|
Net
|
||||||||||||||||||||
2006
|
2005
|
Change
|
Growth
%
|
Revenues
|
Growth
%
|
|||||||||||||||||||
Florida
Retail
|
$ |
44,083
|
$ |
38,146
|
$ |
5,937
|
15.6 | % | $ |
109
|
15.3 | % | ||||||||||||
National
Retail
|
52,874
|
48,555
|
4,319
|
8.9 | % |
3,896
|
0.9 | % | ||||||||||||||||
Western
Retail
|
26,896
|
26,848
|
48
|
0.2 | % |
1,269
|
(4.5 | )% | ||||||||||||||||
Total
Retail(1)
|
123,853
|
113,549
|
10,304
|
9.1 | % |
5,274
|
4.4 | % | ||||||||||||||||
Professional
Programs
|
10,806
|
10,820
|
(14 | ) | (0.1 | )% |
-
|
(0.1 | )% | |||||||||||||||
Special
Programs
|
26,626
|
22,080
|
4,546
|
20.6 | % |
2,376
|
9.8 | % | ||||||||||||||||
Total
National Programs
|
37,432
|
32,900
|
4,532
|
13.8 | % |
2,376
|
6.6 | % | ||||||||||||||||
Wholesale
Brokerage
|
36,017
|
31,990
|
4,027
|
12.6 | % |
2,238
|
5.6 | % | ||||||||||||||||
Services
|
9,164
|
6,821
|
2,343
|
34.3 | % |
1,608
|
10.8 | % | ||||||||||||||||
Total
Core Commissions
and
Fees
|
$ |
206,466
|
$ |
185,260
|
$ |
21,206
|
11.4 | % | $ |
11,496
|
5.2 | % |
For
the three months
ended
September 30,
|
||||||||
2006
|
2005
|
|||||||
Total
core commissions and fees
|
$ |
206,466
|
$ |
185,260
|
||||
Profit-sharing
contingent commissions
|
2,092
|
2,563
|
||||||
Divested
business
|
-
|
621
|
||||||
Total
commission & fees
|
$ |
208,558
|
$ |
188,444
|
|
(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.
|
2007
|
For
the nine months
|
Total
|
Total
|
Less
|
Internal
|
|||||||||||||||||||
ended
September 30,
|
Net
|
Net
|
Acquisition
|
Net
|
||||||||||||||||||||
2007
|
2006
|
Change
|
Growth
%
|
Revenues
|
Growth
%
|
|||||||||||||||||||
Florida
Retail
|
$ |
134,080
|
$ |
129,858
|
$ |
4,222
|
3.3 | % | $ |
2,126
|
1.6 | % | ||||||||||||
National
Retail
|
180,521
|
154,527
|
25,994
|
16.8 | % |
25,358
|
0.4 | % | ||||||||||||||||
Western
Retail
|
73,447
|
77,593
|
(4,146 | ) | (5.3 | )% |
356
|
(5.8 | )% | |||||||||||||||
Total
Retail(1)
|
388,048
|
361,978
|
26,070
|
7.2 | % |
27,840
|
(0.5 | )% | ||||||||||||||||
Professional
Programs
|
30,718
|
29,887
|
831
|
2.8 | % |
376
|
1.5 | % | ||||||||||||||||
Special
Programs
|
77,494
|
80,220
|
(2,726 | ) | (3.4 | )% |
5,347
|
(10.1 | )% | |||||||||||||||
Total
National Programs
|
108,212
|
110,107
|
(1,895 | ) | (1.7 | )% |
5,723
|
(6.9 | )% | |||||||||||||||
Wholesale
Brokerage
|
121,990
|
113,896
|
8,094
|
7.1 | % |
11,767
|
(3.2 | )% | ||||||||||||||||
Services
|
27,528
|
23,859
|
3,669
|
15.4 | % |
2,328
|
5.6 | % | ||||||||||||||||
Total
Core Commissions
and
Fees
|
$ |
645,778
|
$ |
609,840
|
$ |
35,938
|
5.9 | % | $ |
47,658
|
(1.9 | )% |
For
the nine months
ended
September 30,
|
||||||||
2007
|
2006
|
|||||||
Total
core commissions and fees
|
$ |
645,778
|
$ |
609,840
|
||||
Profit-sharing
contingent commissions
|
55,678
|
40,163
|
||||||
Divested
business
|
-
|
3,897
|
||||||
Total
commission & fees
|
$ |
701,456
|
$ |
653,900
|
2006
|
For
the nine months
|
Total
|
Total
|
Less
|
Internal
|
|||||||||||||||||||
ended
September 30,
|
Net
|
Net
|
Acquisition
|
Net
|
||||||||||||||||||||
2006
|
2005
|
Change
|
Growth
%
|
Revenues
|
Growth
%
|
|||||||||||||||||||
Florida
Retail
|
$ |
130,372
|
$ |
116,195
|
$ |
14,177
|
12.2 | % | $ |
490
|
11.8 | % | ||||||||||||
National
Retail
|
157,156
|
149,115
|
8,041
|
5.4 | % |
9,995
|
(1.3 | )% | ||||||||||||||||
Western
Retail
|
78,347
|
77,478
|
869
|
1.1 | % |
4,134
|
(4.2 | )% | ||||||||||||||||
Total
Retail(1)
|
365,875
|
342,788
|
23,087
|
6.7 | % |
14,619
|
2.5 | % | ||||||||||||||||
Professional
Programs
|
30,268
|
31,433
|
(1,165 | ) | (3.7 | )% |
-
|
(3.7 | )% | |||||||||||||||
Special
Programs
|
79,839
|
64,199
|
15,640
|
24.4 | % |
6,605
|
14.1 | % | ||||||||||||||||
Total
National Programs
|
110,107
|
95,632
|
14,475
|
15.1 | % |
6,605
|
8.2 | % | ||||||||||||||||
Wholesale
Brokerage
|
113,896
|
87,433
|
26,463
|
30.3 | % |
19,406
|
8.1 | % | ||||||||||||||||
Services
|
23,859
|
19,653
|
4,206
|
21.4 | % |
2,956
|
6.4 | % | ||||||||||||||||
Total
Core Commissions
and
Fees
|
$ |
613,737
|
$ |
545,506
|
$ |
68,231
|
12.5 | % | $ |
43,586
|
4.5 | % |
For
the nine months
ended
September 30,
|
||||||||
2006
|
2005
|
|||||||
Total
core commissions and fees
|
$ |
613,737
|
$ |
545,506
|
||||
Profit-sharing
contingent commissions
|
40,163
|
34,409
|
||||||
Divested
business
|
-
|
1,582
|
||||||
Total
commission & fees
|
$ |
653,900
|
$ |
581,497
|
|
(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
|
For
the nine months
|
|||||||||||||||||||||||
ended
September 30,
|
ended
September 30,
|
|||||||||||||||||||||||
%
|
%
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
REVENUES
|
||||||||||||||||||||||||
Commissions
and fees
|
$ |
127,108
|
$ |
123,934
|
2.6 | % | $ |
388,833
|
$ |
365,591
|
6.4 | % | ||||||||||||
Profit-sharing
contingent commissions
|
2,359
|
876
|
169.3 | % |
33,348
|
29,618
|
12.6 | % | ||||||||||||||||
Investment
income
|
65
|
36
|
80.6 | % |
164
|
71
|
131.0 | % | ||||||||||||||||
Other
income, net
|
7,327
|
38
|
NMF
|
11,889
|
532
|
NMF
|
||||||||||||||||||
Total
revenues
|
136,859
|
124,884
|
9.6 | % |
434,234
|
395,812
|
9.7 | % | ||||||||||||||||
EXPENSES
|
||||||||||||||||||||||||
Employee
compensation and benefits
|
64,059
|
59,702
|
7.3 | % |
197,502
|
183,006
|
7.9 | % | ||||||||||||||||
Non-cash
stock-based compensation
|
809
|
745
|
8.6 | % |
2,431
|
2,230
|
9.0 | % | ||||||||||||||||
Other
operating expenses
|
22,338
|
20,477
|
9.1 | % |
65,624
|
62,601
|
4.8 | % | ||||||||||||||||
Amortization
|
5,654
|
4,846
|
16.7 | % |
15,885
|
14,507
|
9.5 | % | ||||||||||||||||
Depreciation
|
1,415
|
1,459
|
(3.0 | )% |
4,255
|
4,251
|
0.1 | % | ||||||||||||||||
Interest
|
5,474
|
4,715
|
16.1 | % |
15,217
|
14,372
|
5.9 | % | ||||||||||||||||
Total
expenses
|
99,749
|
91,944
|
8.5 | % |
300,914
|
280,967
|
7.1 | % | ||||||||||||||||
Income
before income taxes
|
$ |
37,110
|
$ |
32,940
|
12.7 | % | $ |
133,320
|
$ |
114,845
|
16.1 | % | ||||||||||||
Net
internal growth rate – core commissions and fees
|
(6.0 | )% | 4.4 | % | (0.5 | )% | 2.5 | % | ||||||||||||||||
Employee
compensation and benefits ratio
|
46.8 | % | 47.8 | % | 45.5 | % | 46.2 | % | ||||||||||||||||
Other
operating expenses ratio
|
16.3 | % | 16.4 | % | 15.1 | % | 15.8 | % | ||||||||||||||||
Capital
expenditures
|
$ |
1,666
|
$ |
1,071
|
$ |
4,591
|
$ |
4,832
|
||||||||||||||||
Total
assets at September 30, 2007 and 2006
|
$ |
1,285,096
|
$ |
1,082,425
|
For
the three months
|
For
the nine months
|
|||||||||||||||||||||||
ended
September 30,
|
ended
September 30,
|
|||||||||||||||||||||||
%
|
%
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
REVENUES
|
||||||||||||||||||||||||
Commissions
and fees
|
$ |
41,611
|
$ |
37,432
|
11.2 | % | $ |
108,212
|
$ |
110,107
|
(1.7 | )% | ||||||||||||
Profit-sharing
contingent commissions
|
1
|
-
|
- |
4,645
|
2,682
|
73.2 | % | |||||||||||||||||
Investment
income
|
136
|
126
|
7.9 | % |
377
|
320
|
17.8 | % | ||||||||||||||||
Other
income, net
|
30
|
12
|
150.0 | % |
19
|
40
|
(52.5 | )% | ||||||||||||||||
Total
revenues
|
41,778
|
37,570
|
11.2 | % |
113,253
|
113,149
|
0.1 | % | ||||||||||||||||
EXPENSES
|
||||||||||||||||||||||||
Employee
compensation and benefits
|
16,275
|
14,822
|
9.8 | % |
46,321
|
44,686
|
3.7 | % | ||||||||||||||||
Non-cash
stock-based compensation
|
197
|
130
|
51.5 | % |
602
|
392
|
53.6 | % | ||||||||||||||||
Other
operating expenses
|
6,321
|
5,509
|
14.7 | % |
18,221
|
16,765
|
8.7 | % | ||||||||||||||||
Amortization
|
2,259
|
2,132
|
6.0 | % |
6,779
|
6,458
|
5.0 | % | ||||||||||||||||
Depreciation
|
680
|
618
|
10.0 | % |
2,088
|
1,697
|
23.0 | % | ||||||||||||||||
Interest
|
2,473
|
2,624
|
(5.8 | )% |
7,694
|
7,768
|
(1.0 | )% | ||||||||||||||||
Total
expenses
|
28,205
|
25,835
|
9.2 | % |
81,705
|
77,766
|
5.1 | % | ||||||||||||||||
Income
before income taxes
|
$ |
13,573
|
$ |
11,735
|
15.7 | % | $ |
31,548
|
$ |
35,383
|
(10.8 | )% | ||||||||||||
Net
internal growth rate – core commissions and fees
|
5.4 | % | 6.6 | % | (6.9 | )% | 8.2 | % | ||||||||||||||||
Employee
compensation and benefits ratio
|
39.0 | % | 39.5 | % | 40.9 | % | 39.5 | % | ||||||||||||||||
Other
operating expenses ratio
|
15.1 | % | 14.7 | % | 16.1 | % | 14.8 | % | ||||||||||||||||
Capital
expenditures
|
$ |
510
|
$ |
287
|
$ |
1,516
|
$ |
2,976
|
||||||||||||||||
Total
assets at September 30, 2007 and 2006
|
$ |
553,453
|
$ |
564,337
|
For
the three months
|
For
the nine months
|
|||||||||||||||||||||||
ended
September 30,
|
ended
September 30,
|
|||||||||||||||||||||||
%
|
%
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
REVENUES
|
||||||||||||||||||||||||
Commissions
and fees
|
$ |
39,354
|
$ |
36,017
|
9.3 | % | $ |
121,990
|
$ |
113,896
|
7.1 | % | ||||||||||||
Profit-sharing
contingent commissions
|
6,515
|
1,216
|
435.8 | % |
17,685
|
7,863
|
124.9 | % | ||||||||||||||||
Investment
income
|
799
|
1,208
|
(33.9 | )% |
2,262
|
3,310
|
(31.7 | )% | ||||||||||||||||
Other
income, net
|
626
|
24
|
NMF
|
607
|
41
|
NMF
|
||||||||||||||||||
Total
revenues
|
47,294
|
38,465
|
23.0 | % |
142,544
|
125,110
|
13.9 | % | ||||||||||||||||
EXPENSES
|
||||||||||||||||||||||||
Employee
compensation and benefits
|
21,713
|
19,002
|
14.3 | % |
66,593
|
58,107
|
14.6 | % | ||||||||||||||||
Non-cash
stock-based compensation
|
198
|
130
|
52.3 | % |
593
|
389
|
52.4 | % | ||||||||||||||||
Other
operating expenses
|
7,816
|
6,520
|
19.9 | % |
23,281
|
21,383
|
8.9 | % | ||||||||||||||||
Amortization
|
2,293
|
1,977
|
16.0 | % |
6,759
|
5,848
|
15.6 | % | ||||||||||||||||
Depreciation
|
713
|
521
|
36.9 | % |
1,974
|
1,464
|
34.8 | % | ||||||||||||||||
Interest
|
4,815
|
4,619
|
4.2 | % |
14,197
|
13,568
|
4.6 | % | ||||||||||||||||
Total
expenses
|
37,548
|
32,769
|
14.6 | % |
113,397
|
100,759
|
12.5 | % | ||||||||||||||||
Income
before income taxes
|
$ |
9,746
|
$ |
5,696
|
71.1 | % | $ |
29,147
|
$ |
24,351
|
19.7 | % | ||||||||||||
Net
internal growth rate – core commissions and fees
|
(3.0 | )% | 5.6 | % | (3.2 | )% | 8.1 | % | ||||||||||||||||
Employee
compensation and benefits ratio
|
45.9 | % | 49.4 | % | 46.7 | % | 46.4 | % | ||||||||||||||||
Other
operating expenses ratio
|
16.5 | % | 17.0 | % | 16.3 | % | 17.1 | % | ||||||||||||||||
Capital
expenditures
|
$ |
425
|
$ |
458
|
$ |
2,425
|
$ |
1,506
|
||||||||||||||||
Total
assets at September 30, 2007 and 2006
|
$ |
649,610
|
$ |
617,665
|
For
the three months
|
For
the nine months
|
|||||||||||||||||||||||
ended
September 30,
|
ended
September 30,
|
|||||||||||||||||||||||
%
|
%
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
REVENUES
|
||||||||||||||||||||||||
Commissions
and fees
|
$ |
9,390
|
$ |
9,164
|
2.5 | % | $ |
27,528
|
$ |
23,859
|
15.4 | % | ||||||||||||
Profit-sharing
contingent commissions
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Investment
income
|
8
|
10
|
(20.0 | )% |
25
|
35
|
(28.6 | )% | ||||||||||||||||
Other
income (loss), net
|
(144 | ) |
-
|
-
|
(144 | ) | (1 | ) |
NMF
|
|||||||||||||||
Total
revenues
|
9,254
|
9,174
|
0.9 | % |
27,409
|
23,893
|
14.7 | % | ||||||||||||||||
EXPENSES
|
||||||||||||||||||||||||
Employee
compensation and benefits
|
4,704
|
4,822
|
(2.4 | )% |
14,810
|
13,173
|
12.4 | % | ||||||||||||||||
Non-cash
stock-based compensation
|
35
|
30
|
16.7 | % |
105
|
89
|
18.0 | % | ||||||||||||||||
Other
operating expenses
|
1,348
|
1,400
|
(3.7 | )% |
4,108
|
3,723
|
10.3 | % | ||||||||||||||||
Amortization
|
115
|
123
|
(6.5 | )% |
346
|
220
|
57.3 | % | ||||||||||||||||
Depreciation
|
125
|
144
|
(13.2 | )% |
420
|
383
|
9.7 | % | ||||||||||||||||
Interest
|
194
|
164
|
18.3 | % |
526
|
275
|
91.3 | % | ||||||||||||||||
Total
expenses
|
6,521
|
6,683
|
(2.4 | )% |
20,315
|
17,863
|
13.7 | % | ||||||||||||||||
Income
before income taxes
|
$ |
2,733
|
$ |
2,491
|
9.7 | % | $ |
7,094
|
$ |
6,030
|
17.6 | % | ||||||||||||
Net
internal growth rate – core commissions and fees
|
2.5 | % | 10.8 | % | 5.6 | % | 6.4 | % | ||||||||||||||||
Employee
compensation and benefits ratio
|
50.8 | % | 52.6 | % | 54.0 | % | 55.1 | % | ||||||||||||||||
Other
operating expenses ratio
|
14.6 | % | 15.3 | % | 15.0 | % | 15.6 | % | ||||||||||||||||
Capital
expenditures
|
$ |
42
|
$ |
135
|
$ |
283
|
$ |
472
|
||||||||||||||||
Total
assets at September 30, 2007 and 2006
|
$ |
38,926
|
$ |
31,578
|
Payments
Due by Period
|
||||||||||||||||||||
Less
Than
|
After
5
|
|||||||||||||||||||
(in
thousands)
|
Total
|
1
Year
|
1-3
Years
|
4-5
Years
|
Years
|
|||||||||||||||
Long-term
debt
|
$ |
236,882
|
$ |
11,484
|
$ |
299
|
$ |
100,099
|
$ |
125,000
|
||||||||||
Capital
lease obligations
|
95
|
90
|
5
|
-
|
-
|
|||||||||||||||
Other
long-term liabilities
|
12,560
|
10,116
|
318
|
411
|
1,715
|
|||||||||||||||
Operating
leases
|
93,287
|
23,050
|
37,459
|
19,580
|
13,198
|
|||||||||||||||
Interest
obligations
|
76,523
|
13,160
|
26,161
|
20,329
|
16,873
|
|||||||||||||||
Maximum
future acquisition contingency payments
|
204,777
|
74,577
|
93,311
|
36,889
|
-
|
|||||||||||||||
Total
contractual cash obligations
|
$ |
624,124
|
$ |
132,477
|
$ |
157,553
|
$ |
177,308
|
$ |
156,786
|
|
·
|
material
adverse changes in economic conditions in the markets we
serve;
|
|
·
|
future
regulatory actions and conditions in the states in which we conduct
our
business;
|
|
·
|
competition
from others in the insurance agency and brokerage
business;
|
|
·
|
a
significant portion of business written by Brown & Brown is for
customers located in Arizona, California, Florida, Georgia, Michigan,
New
Jersey, New York, Pennsylvania 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, although no such conditions have been encountered
in the
past;
|
|
·
|
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 percentages)
|
Contractual/
Notional
Amount
|
Fair
Value
|
Weighted
Average
Pay
Rates
|
Weighted
Average
Received
Rates
|
|
|
|
|
|
Interest
rate swap agreement
|
$3,214
|
$5
|
4.53%
|
5.32%
|
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).
|
|
|
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 9, 2007
|
Cory
T. Walker
Sr.
Vice President, Chief Financial Officer and
Treasurer
(duly
authorized officer, principal financial officer and principal accounting
officer)
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