CHICAGO--(BUSINESS WIRE)--Ryan Specialty Holdings, Inc. (NYSE: RYAN) (“Ryan Specialty” or the “Company”), a leading international specialty insurance firm, today announced results for the first quarter ended March 31, 2024.
First Quarter 2024 Highlights
- Revenue grew 20.6% year-over-year to $552.0 million, compared to $457.6 million in the prior-year period
- Organic Revenue Growth Rate* was 13.7% for the quarter, compared to 13.4% in the prior-year period 1
- Net Income increased 11.6% year-over-year to $40.7 million, compared to $36.5 million in the prior-year period. Diluted Earnings per Share was $0.13
- Adjusted EBITDAC* increased 25.8% to $157.2 million, compared to $125.0 million in the prior-year period
- Adjusted EBITDAC Margin* of 28.5%, compared to 27.3% in the prior-year period
- Adjusted Net Income* increased 32.9% to $95.4 million, compared to $71.8 million in the prior-year period
- Adjusted Diluted Earnings per Share* increased 34.6% to $0.35, compared to $0.26 in the prior-year period
- Total capital return to shareholders and LLC unit holders was $45.6 million, consisting of $27.1 million of special dividends and $18.5 million of regular dividends and distributions.
“We had a great start to 2024, driven by another quarter of double-digit organic growth and further enhancement of our margin profile,” said Patrick G. Ryan, Founder, Chairman and Chief Executive Officer of Ryan Specialty. “Our exceptional performance was highlighted by 13.7% organic revenue growth, a 120-basis point expansion of our Adjusted EBITDAC margin, and 34.6% growth in our Adjusted Diluted EPS. Our outstanding success continues to be broad-based across our Specialties and includes valuable contributions from our recent acquisitions. This momentum is a reflection of the resolve of our 4,400 talented teammates to execute with distinction and to provide best-in-class service to our clients and trading partners. We are also very pleased to have announced just yesterday the completion of our acquisition of Castel and the addition of this venerable team to our firm. This influx of additional top underwriting talent bolsters our delegated authority offering, enhances our international presence, and expands our total addressable market. I remain confident that 2024 will be another outstanding year for our firm as we are well positioned to deliver sustainable and differentiated profitable growth.”
1 |
Beginning in the first quarter of 2024, the Company changed its method of calculating Organic revenue growth rate, a non-GAAP measure. For more information on the revised calculation methodology, see “Organic Revenue Growth Rate Calculation Methodology” below. |
Summary of First Quarter 2024 Results
|
|
Three Months Ended March 31, |
|
|
Change |
|
||||||||||
(in thousands, except percentages and per share data) |
|
2024 |
|
|
2023 |
|
|
$ |
|
|
% |
|
||||
GAAP financial measures |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total revenue |
|
$ |
552,046 |
|
|
$ |
457,599 |
|
|
$ |
94,447 |
|
|
|
20.6 |
% |
Net commissions and fees |
|
|
537,887 |
|
|
|
447,513 |
|
|
|
90,374 |
|
|
|
20.2 |
|
Compensation and benefits |
|
|
373,527 |
|
|
|
307,722 |
|
|
|
65,805 |
|
|
|
21.4 |
|
General and administrative |
|
|
75,867 |
|
|
|
51,699 |
|
|
|
24,168 |
|
|
|
46.7 |
|
Total operating expenses |
|
|
479,397 |
|
|
|
387,512 |
|
|
|
91,885 |
|
|
|
23.7 |
|
Operating income |
|
|
72,649 |
|
|
|
70,087 |
|
|
|
2,562 |
|
|
|
3.7 |
|
Net income |
|
|
40,677 |
|
|
|
36,457 |
|
|
|
4,220 |
|
|
|
11.6 |
|
Net income attributable to Ryan Specialty Holdings, Inc. |
|
|
16,535 |
|
|
|
13,160 |
|
|
|
3,375 |
|
|
|
25.6 |
|
Compensation and benefits expense ratio (1) |
|
|
67.7 |
% |
|
|
67.2 |
% |
|
|
|
|
|
|
||
General and administrative expense ratio (2) |
|
|
13.7 |
% |
|
|
11.3 |
% |
|
|
|
|
|
|
||
Net income margin (3) |
|
|
7.4 |
% |
|
|
8.0 |
% |
|
|
|
|
|
|
||
Earnings per share (4) |
|
$ |
0.14 |
|
|
$ |
0.12 |
|
|
|
|
|
|
|
||
Diluted earnings per share (4) |
|
$ |
0.13 |
|
|
$ |
0.11 |
|
|
|
|
|
|
|
||
Non-GAAP financial measures* |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Organic revenue growth rate (5) |
|
|
13.7 |
% |
|
|
13.4 |
% |
|
|
|
|
|
|
||
Adjusted compensation and benefits expense |
|
$ |
330,022 |
|
|
$ |
285,885 |
|
|
$ |
44,137 |
|
|
|
15.4 |
% |
Adjusted compensation and benefits expense ratio |
|
|
59.8 |
% |
|
|
62.5 |
% |
|
|
|
|
|
|
||
Adjusted general and administrative expense |
|
$ |
64,802 |
|
|
$ |
46,699 |
|
|
$ |
18,103 |
|
|
|
38.8 |
% |
Adjusted general and administrative expense ratio |
|
|
11.7 |
% |
|
|
10.2 |
% |
|
|
|
|
|
|
||
Adjusted EBITDAC |
|
$ |
157,222 |
|
|
$ |
125,015 |
|
|
$ |
32,207 |
|
|
|
25.8 |
% |
Adjusted EBITDAC margin |
|
|
28.5 |
% |
|
|
27.3 |
% |
|
|
|
|
|
|
||
Adjusted net income |
|
$ |
95,417 |
|
|
$ |
71,785 |
|
|
$ |
23,632 |
|
|
|
32.9 |
% |
Adjusted net income margin |
|
|
17.3 |
% |
|
|
15.7 |
% |
|
|
|
|
|
|
||
Adjusted diluted earnings per share |
|
$ |
0.35 |
|
|
$ |
0.26 |
|
|
|
|
|
|
|
||
* For a definition and a reconciliation of Organic revenue growth rate, Adjusted compensation and benefits expense, Adjusted compensation and benefits ratio, Adjusted general and administrative expense, Adjusted general and administrative expense ratio, Adjusted EBITDAC, Adjusted EBITDAC margin, Adjusted net income, Adjusted net income margin, and Adjusted diluted earnings per share to the most directly comparable GAAP measure, see “Non-GAAP Financial Measures and Key Performance Indicators” below. |
||
(1) |
Compensation and benefits expense ratio is defined as Compensation and benefits divided by Total revenue. |
|
(2) |
General and administrative expense ratio is defined as General and administrative expense divided by Total revenue. |
|
(3) |
Net income margin is defined as Net income divided by Total revenue. |
|
(4) |
See “Note 10, Earnings Per Share” of the unaudited quarterly consolidated financial statements. |
|
(5) |
The Organic revenue growth rate data presented in this table has been calculated using the revised calculation methodology adopted by the Company beginning in the first quarter of 2024. For more information, see “Organic Revenue Growth Rate Calculation Methodology” below. |
|
First Quarter 2024 Review*
Total revenue for the first quarter of 2024 was $552.0 million, an increase of 20.6% compared to $457.6 million in the prior-year period. This increase was primarily due to continued solid Organic revenue growth of 13.7% (calculated using the revised calculation methodology adopted by the Company beginning in the first quarter of 2024), driven by new client wins and expanded relationships with existing clients, coupled with continued expansion of the E&S market, revenue from acquisitions completed within the trailing twelve months ended March 31, 2024, and increased Fiduciary investment income. We experienced growth across the majority of our property and casualty lines.
Total operating expenses for the first quarter of 2024 were $479.4 million, a 23.7% increase compared to the prior-year period. This increase was primarily due to an increase in Compensation and benefits expense compared to the prior-year period resulting from higher compensation due to revenue growth and higher restructuring and related expenses associated with ACCELERATE 2025, partially offset by savings associated with ACCELERATE 2025. General and administrative expense also increased compared to the prior-year period due to an increase in professional services in connection with revenue generating activities, higher travel and entertainment expense in connection with a difference in timing of certain events, and higher acquisition-related expenses.
Net income for the first quarter of 2024 increased 11.6% to $40.7 million, compared to $36.5 million in the prior-year period. The increase was mainly due to stronger year-over-year revenue growth.
Adjusted EBITDAC grew 25.8% to $157.2 million from $125.0 million in the prior-year period. Adjusted EBITDAC margin for the quarter was 28.5%, compared to 27.3% in the prior-year period. The increase in Adjusted EBITDAC was driven primarily by solid revenue growth, partially offset by increased Adjusted compensation and benefits expense, as well as higher Adjusted general and administrative expense.
Adjusted net income for the first quarter of 2024 increased 32.9% to $95.4 million, compared to $71.8 million in the prior-year period. Adjusted net income margin was 17.3%, compared to 15.7% in the prior-year period. Adjusted diluted earnings per share for the first quarter of 2024 increased 34.6% to $0.35, compared to $0.26 in the prior-year period.
* For the definition of each of the non-GAAP measures referred to above, as well as a reconciliation of such non-GAAP measures to their most directly comparable GAAP measures, see “Non-GAAP Financial Measures and Key Performance Indicators” below.
First Quarter 2024 Net Commissions and Fees by Specialty and Revenue by Type
Growth in Net commissions and fees in all specialties was primarily driven by solid organic growth.
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
|
|||||||||||||||
(in thousands, except percentages) |
|
2024 |
|
|
% of
|
|
|
2023 |
|
|
% of
|
|
|
Change |
|
|||||||||
Wholesale Brokerage |
|
$ |
323,445 |
|
|
|
60.1 |
% |
|
$ |
285,850 |
|
|
|
63.9 |
% |
|
$ |
37,595 |
|
|
|
13.2 |
% |
Binding Authorities |
|
|
88,635 |
|
|
|
16.5 |
|
|
|
69,526 |
|
|
|
15.5 |
|
|
|
19,109 |
|
|
|
27.5 |
|
Underwriting Management |
|
|
125,807 |
|
|
|
23.4 |
|
|
|
92,137 |
|
|
|
20.6 |
|
|
|
33,670 |
|
|
|
36.5 |
|
Total Net commissions and fees |
|
$ |
537,887 |
|
|
|
|
|
$ |
447,513 |
|
|
|
|
|
$ |
90,374 |
|
|
|
20.2 |
% |
||
The following table sets forth our revenue by type of commission and fees:
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
|
|||||||||||||||
(in thousands, except percentages) |
|
2024 |
|
|
% of
|
|
|
2023 |
|
|
% of
|
|
|
Change |
|
|||||||||
Net commissions and policy fees |
|
$ |
494,445 |
|
|
|
91.9 |
% |
|
$ |
413,571 |
|
|
|
92.4 |
% |
|
$ |
80,874 |
|
|
|
19.6 |
% |
Supplemental and contingent commissions |
|
|
29,256 |
|
|
|
5.5 |
|
|
|
26,331 |
|
|
|
5.9 |
|
|
|
2,925 |
|
|
|
11.1 |
|
Loss mitigation and other fees |
|
|
14,186 |
|
|
|
2.6 |
|
|
|
7,611 |
|
|
|
1.7 |
|
|
|
6,575 |
|
|
|
86.4 |
|
Total net commissions and fees |
|
$ |
537,887 |
|
|
|
|
|
$ |
447,513 |
|
|
|
|
|
$ |
90,374 |
|
|
|
20.2 |
% |
||
Liquidity and Financial Condition
As of March 31, 2024, the Company had Cash and cash equivalents of $665.4 million and outstanding debt principal of $2.0 billion.
ACCELERATE 2025
The Company is updating the ACCELERATE 2025 restructuring program as additional opportunities have been identified to drive continued growth and innovation, deliver sustainable productivity improvements over the long term, and accelerate margin improvement. The updated program will result in approximately $110 million of cumulative one-time charges through 2024, with an expectation that the program will generate annual savings of approximately $60 million in 2025.
Quarterly Dividend
On May 2, 2024, the Company's board of directors (the "Board") declared a regular quarterly dividend of $0.11 per share on the outstanding Class A common stock. The regular quarterly dividend will be payable on May 28, 2024, to stockholders of record as of the close of business on May 14, 2024. A portion of the dividend, $0.04 per share, will be funded by free cash flow from Ryan Specialty, LLC and will be paid to all holders of the Company's Class A common stock and the common units of Ryan Specialty, LLC.
Organic Revenue Growth Rate Calculation Methodology
In the first quarter of 2024 the Company revised its calculation methodology for the non-GAAP metric of Organic Revenue Growth Rate. Organic Revenue Growth Rate, which is now defined as the percentage change in Net commissions and fees, as compared to the same period for the prior year, adjusted to eliminate revenue attributable to acquisitions for the first twelve months of ownership, and other items such as contingent commissions and the impact of changes in foreign exchange rates. The revised calculation methodology starts from a net commissions and fees growth rate rather than total revenues and excludes contingent commissions, thereby fully removing the impact of Fiduciary investment income and contingent commissions from both the current period and base period. The legacy calculation methodology started from a total revenue growth rate and adjusted for the change in Fiduciary investment income and contingent commissions thereby leaving Fiduciary investment income and contingent commissions in the base period. We believe the revised calculation methodology is a more robust disclosure, a more widely used calculation methodology, and provides investors with a metric that is better representative of our core business performance. Organic Revenue Growth Rate is a key metric used by management and our Board to assess our financial performance and allows management and investors to evaluate business growth from existing clients.
Full Year 2024 Outlook*
The Company is maintaining its full year 2024 outlook for Organic Revenue Growth Rate (under the legacy calculation methodology) and Adjusted EBITDAC Margin. The full year 2024 outlook (under the revised Organic Revenue Growth Rate calculation methodology, as discussed above) is as follows:
- Organic Revenue Growth Rate guidance for full year 2024 is between 12.5% – 14.0%
- Adjusted EBITDAC Margin guidance for full year 2024 is between 31.0% – 31.5%
The Company is unable to provide a comparable outlook for, or a reconciliation to, Total revenue growth rate or Net income margin because it cannot provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. Its inability to do so is due to the inherent difficulty in forecasting the timing of items that have not yet occurred and quantifying certain amounts that are necessary for such reconciliation, including variations in effective tax rate, expenses to be incurred for acquisition activities, and other one-time or exceptional items.
* For a definition of Organic revenue growth rate, see “Organic Revenue Growth Rate Calculation Methodology” above. For a definition of Adjusted EBITDAC margin, see “Non-GAAP Financial Measures and Key Performance Indicators” below.
Conference Call Information
Ryan Specialty will host a conference call today at 5:00 PM ET to discuss these results. A live audio webcast of the conference call will be available on the Company’s website at ryanspecialty.com in its Investors section.
The dial-in number for the conference call is (877) 451-6152 (toll-free) or (201) 389-0879 (international). Please dial the number 10 minutes prior to the scheduled start time.
A webcast replay of the call will be available on the Company’s website at ryanspecialty.com in its Investors section for one year following the call.
About Ryan Specialty
Founded in 2010, Ryan Specialty (NYSE: RYAN) is a service provider of specialty products and solutions for insurance brokers, agents, and carriers. Ryan Specialty provides distribution, underwriting, product development, administration, and risk management services by acting as a wholesale broker and a managing underwriter with delegated authority from insurance carriers. Our mission is to provide industry-leading innovative specialty insurance solutions for insurance brokers, agents, and carriers. Learn more at ryanspecialty.com.
Forward-Looking Statements
All statements in this release and in the corresponding earnings call that are not historical are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve substantial risks and uncertainties. For example, all statements the Company makes relating to its estimated and projected costs, expenditures, cash flows, growth rates and financial results, its plans, anticipated amount and timing of cost savings relating to the restructuring plan, or its plans and objectives for future operations, growth initiatives, or strategies and the statements under the caption “Full Year 2024 Outlook” are forward-looking statements. Words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely” and variations of such words and similar expressions are intended to identify such forward-looking statements. All forward-looking statements are subject to risks and uncertainties, known and unknown, that may cause actual results to differ materially from those that the Company expected. Specific factors that could cause such a difference include, but are not limited to, those disclosed previously in the Company’s filings with the Securities and Exchange Commission (“SEC”).
For more detail on the risk factors that may affect the Company’s results, see the section entitled "Risk Factors" in our most recent annual report on Form 10-K filed with the SEC, and in other documents filed with, or furnished to, the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Given these factors, as well as other variables that may affect the Company’s operating results, you are cautioned not to place undue reliance on these forward-looking statements, not to assume that past financial performance will be a reliable indicator of future performance, and not to use historical trends to anticipate results or trends in future periods. The forward-looking statements included in this press release and on the related earnings call relate only to events as of the date hereof. The Company does not undertake, and expressly disclaims, any duty or obligation to update publicly any forward-looking statement after the date of this release, whether as a result of new information, future events, changes in assumptions, or otherwise.
Non-GAAP Financial Measures and Key Performance Indicators
In assessing the performance of the Company’s business, non-GAAP financial measures are used that are derived from the Company’s consolidated financial information, but which are not presented in the Company’s consolidated financial statements prepared in accordance with GAAP. The Company considers these non-GAAP financial measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period by excluding potential differences caused by variations in capital structures, tax positions, depreciation, amortization, and certain other items that the Company believes are not representative of its core business. The Company uses the following non-GAAP measures for business planning purposes, in measuring performance relative to that of its competitors, to help investors to understand the nature of the Company's growth, and to enable investors to evaluate the run-rate performance of the Company. Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the consolidated financial statements prepared and presented in accordance with GAAP. The footnotes to the reconciliation tables below should be read in conjunction with the audited consolidated financial statements in our Annual Report on form 10-K filed with the SEC. Industry peers may provide similar supplemental information but may not define similarly-named metrics in the same way and may not make identical adjustments.
Organic revenue growth rate: Under our legacy calculation methodology, Organic revenue growth rate represented the percentage change in Total revenue, as compared to the same period for the year prior, adjusted for revenue attributable to recent acquisitions during the first 12 months of Ryan Specialty’s ownership, and other adjustments such as changes in contingent commissions, changes in fiduciary investment income, and the impact of changes in foreign exchange rates. Under our revised calculation methodology, Organic revenue growth rate represents the percentage change in Net commissions and fees revenue, as compared to the same period for the year prior, adjusted for Net commissions and fees attributable to recent acquisitions during the first 12 months of Ryan Specialty’s ownership, and other adjustments such as the removal of the impact of contingent commissions and the impact of changes in foreign exchange rates. For more information, see “Organic Revenue Growth Rate Calculation Methodology” above.
Adjusted compensation and benefits expense: Adjusted compensation and benefits expense is defined as Compensation and benefits expense adjusted to reflect items such as (i) equity-based compensation, (ii) acquisition and restructuring related compensation expenses, and (iii) other exceptional or non-recurring compensation expenses, as applicable. The most directly comparable GAAP financial metric is Compensation and benefits expense.
Adjusted general and administrative expense: Adjusted general and administrative expense is defined as General and administrative expense adjusted to reflect items such as (i) acquisition and restructuring related general and administrative expenses, and (ii) other exceptional or non-recurring general and administrative expenses, as applicable. The most directly comparable GAAP financial metric is General and administrative expense.
Adjusted compensation and benefits expense ratio: Adjusted compensation and benefits expense ratio is defined as the Adjusted compensation and benefits expense as a percentage of Total revenue. The most directly comparable GAAP financial metric is Compensation and benefits expense ratio.
Adjusted general and administrative expense ratio: Adjusted general and administrative expense ratio is defined as the Adjusted general and administrative expense as a percentage of Total revenue. The most directly comparable GAAP financial metric is General and administrative expense ratio.
Adjusted EBITDAC: Adjusted EBITDAC is defined as Net income before Interest expense, net, Income tax expense, Depreciation, Amortization, and Change in contingent consideration, adjusted to reflect items such as (i) equity-based compensation, (ii) acquisition-related expenses, and (iii) other exceptional or non-recurring items, as applicable. Acquisition-related expense includes one-time diligence, transaction-related, and integration costs. In 2024, Acquisition-related expense includes a $2.5 million charge related to a deal-contingent foreign exchange forward contract associated with the Castel acquisition. The remaining charges in both years represent typical one-time diligence, transaction-related, and integration costs. Acquisition-related long-term incentive compensation arises from changes to long-term incentive plans associated with acquisitions. Restructuring and related expense consists of compensation and benefits, occupancy, contractors, professional services, and license fees related to the ACCELERATE 2025 program. The compensation and benefits expense included severance as well as employment costs related to services rendered between the notification and termination dates and other termination payments. See “Note 4, Restructuring” of the unaudited quarterly consolidated financial statements for further discussion of ACCELERATE 2025. The remaining costs that preceded the restructuring plan were associated with professional services costs related to program design and licensing costs. Amortization and expense consists of charges related to discontinued prepaid incentive programs. For the three months ended March 31, 2024, Other non-operating loss (income) consisted of $1.9 million of expense related to fees associated with our term loan repricing offset by $0.1 million of sublease income. For the three months ended March 31, 2023, Other non-operating income included $0.1 million of sublease income. Equity-based compensation reflects non-cash equity-based expense. IPO related expenses include compensation-related expense primarily related to the expense for new awards issued at IPO as well as expense related to the revaluation of existing equity awards at IPO. Total revenue less Adjusted compensation and benefits expense and Adjusted general and administrative expense is equivalent to Adjusted EBITDAC. For a breakout of compensation and general and administrative costs for each addback refer to the Adjusted compensation and benefits expense and Adjusted general and administrative expense tables below. The most directly comparable GAAP financial metric to Adjusted EBITDAC is Net income.
Adjusted EBITDAC margin: Adjusted EBITDAC margin is defined as Adjusted EBITDAC as a percentage of Total revenue. The most directly comparable GAAP financial metric is Net income margin.
Adjusted net income: Adjusted net income is defined as tax-effected earnings before amortization and certain items of income and expense, gains and losses, equity-based compensation, acquisition related long-term incentive compensation, acquisition-related expenses, costs associated with our Initial Public Offering (the “IPO”), and certain exceptional or non-recurring items. The Company will be subject to United States federal income taxes, in addition to state, local, and foreign taxes, with respect to its allocable share of any net taxable income of Ryan Specialty, LLC (together with its parent New Ryan Specialty, LLC and their subsidiaries, the “LLC”). For comparability purposes, this calculation incorporates the impact of federal and state statutory tax rates on 100% of the Company's adjusted pre-tax income as if the Company owned 100% of Ryan Specialty, LLC. The most directly comparable GAAP financial metric is Net income.
Adjusted net income margin: Adjusted net income margin is defined as Adjusted net income as a percentage of Total revenue. The most directly comparable GAAP financial metric is Net income margin.
Adjusted diluted earnings per share: Adjusted diluted earnings per share is defined as Adjusted net income divided by diluted shares outstanding after adjusting for the effect if 100% of the outstanding LLC Common Units (“LLC Common Units”), together with the shares of Class B common stock, vested Class C Incentive Units, and unvested equity awards were exchanged into shares of Class A common stock as if 100% of unvested equity awards were vested. The most directly comparable GAAP financial metric is Diluted earnings per share.
The reconciliation of the above non-GAAP measures to each of their most directly comparable GAAP financial measure is set forth in the reconciliation table accompanying this release.
With respect to the Organic revenue growth rate and Adjusted EBITDAC margin outlook presented in the “Full Year 2024 Outlook” section of this press release, the Company is unable to provide a comparable outlook for, or a reconciliation to, Total revenue growth rate or Net income margin because it cannot provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. Its inability to do so is due to the inherent difficulty in forecasting the timing of items that have not yet occurred and quantifying certain amounts that are necessary for such reconciliation, including variations in effective tax rate, expenses to be incurred for acquisition activities, and other one-time or exceptional items.
Consolidated Statements of Income (Unaudited)
|
|
Three Months Ended
|
|
|||||
(in thousands, except percentages and per share data) |
|
2024 |
|
|
2023 |
|
||
Revenue |
|
|
|
|
|
|
||
Net commissions and fees |
|
$ |
537,887 |
|
|
$ |
447,513 |
|
Fiduciary investment income |
|
|
14,159 |
|
|
|
10,086 |
|
Total revenue |
|
$ |
552,046 |
|
|
$ |
457,599 |
|
Expenses |
|
|
|
|
|
|
||
Compensation and benefits |
|
|
373,527 |
|
|
|
307,722 |
|
General and administrative |
|
|
75,867 |
|
|
|
51,699 |
|
Amortization |
|
|
27,988 |
|
|
|
25,185 |
|
Depreciation |
|
|
2,080 |
|
|
|
2,192 |
|
Change in contingent consideration |
|
|
(65 |
) |
|
|
714 |
|
Total operating expenses |
|
$ |
479,397 |
|
|
$ |
387,512 |
|
Operating income |
|
$ |
72,649 |
|
|
$ |
70,087 |
|
Interest expense, net |
|
|
29,400 |
|
|
|
29,468 |
|
(Income) from equity method investment in related party |
|
|
(5,606 |
) |
|
|
(1,995 |
) |
Other non-operating loss (income) |
|
|
1,752 |
|
|
|
(138 |
) |
Income before income taxes |
|
$ |
47,103 |
|
|
$ |
42,752 |
|
Income tax expense |
|
|
6,426 |
|
|
|
6,295 |
|
Net income |
|
$ |
40,677 |
|
|
$ |
36,457 |
|
GAAP financial measures |
|
|
|
|
|
|
||
Total revenue |
|
$ |
552,046 |
|
|
$ |
457,599 |
|
Net commissions and fees |
|
|
537,887 |
|
|
|
447,513 |
|
Compensation and benefits |
|
|
373,527 |
|
|
|
307,722 |
|
General and administrative |
|
|
75,867 |
|
|
|
51,699 |
|
Net income |
|
|
40,677 |
|
|
|
36,457 |
|
Compensation and benefits expense ratio |
|
|
67.7 |
% |
|
|
67.2 |
% |
General and administrative expense ratio |
|
|
13.7 |
% |
|
|
11.3 |
% |
Net income margin |
|
|
7.4 |
% |
|
|
8.0 |
% |
Earnings per share |
|
$ |
0.14 |
|
|
$ |
0.12 |
|
Diluted earnings per share |
|
$ |
0.13 |
|
|
$ |
0.11 |
|
Non-GAAP Financial Measures (Unaudited)
|
|
Three Months Ended
|
|
|||||
(in thousands, except percentages and per share data) |
|
2024 |
|
|
2023 |
|
||
Non-GAAP financial measures |
|
|
|
|
|
|
||
Organic revenue growth rate (1) |
|
|
13.7 |
% |
|
|
13.4 |
% |
Adjusted compensation and benefits expense |
|
$ |
330,022 |
|
|
$ |
285,885 |
|
Adjusted compensation and benefits expense ratio |
|
|
59.8 |
% |
|
|
62.5 |
% |
Adjusted general and administrative expense |
|
$ |
64,802 |
|
|
$ |
46,699 |
|
Adjusted general and administrative expense ratio |
|
|
11.7 |
% |
|
|
10.2 |
% |
Adjusted EBITDAC |
|
$ |
157,222 |
|
|
$ |
125,015 |
|
Adjusted EBITDAC margin |
|
|
28.5 |
% |
|
|
27.3 |
% |
Adjusted net income |
|
$ |
95,417 |
|
|
$ |
71,785 |
|
Adjusted net income margin |
|
|
17.3 |
% |
|
|
15.7 |
% |
Adjusted diluted earnings per share |
|
$ |
0.35 |
|
|
$ |
0.26 |
|
(1) |
The Organic revenue growth rate data presented in this table has been calculated using the revised calculation methodology. For more information, see “Organic Revenue Growth Rate Calculation Methodology” above. |
Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data) |
|
March 31,
|
|
|
December 31,
|
|
||
ASSETS |
|
|
|
|
|
|
||
CURRENT ASSETS |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
665,420 |
|
|
$ |
838,790 |
|
Commissions and fees receivable – net |
|
|
299,162 |
|
|
|
294,195 |
|
Fiduciary cash and receivables |
|
|
3,181,352 |
|
|
|
3,131,660 |
|
Prepaid incentives – net |
|
|
8,149 |
|
|
|
8,718 |
|
Other current assets |
|
|
62,289 |
|
|
|
62,229 |
|
Total current assets |
|
$ |
4,216,372 |
|
|
$ |
4,335,592 |
|
NON-CURRENT ASSETS |
|
|
|
|
|
|
||
Goodwill |
|
|
1,647,252 |
|
|
|
1,646,482 |
|
Customer relationships |
|
|
546,722 |
|
|
|
572,416 |
|
Other intangible assets |
|
|
45,043 |
|
|
|
38,254 |
|
Prepaid incentives – net |
|
|
15,756 |
|
|
|
15,103 |
|
Equity method investment in related party |
|
|
56,016 |
|
|
|
46,099 |
|
Property and equipment – net |
|
|
42,671 |
|
|
|
42,427 |
|
Lease right-of-use assets |
|
|
121,596 |
|
|
|
127,708 |
|
Deferred tax assets |
|
|
382,636 |
|
|
|
383,816 |
|
Other non-current assets |
|
|
42,438 |
|
|
|
39,312 |
|
Total non-current assets |
|
$ |
2,900,130 |
|
|
$ |
2,911,617 |
|
TOTAL ASSETS |
|
$ |
7,116,502 |
|
|
$ |
7,247,209 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
CURRENT LIABILITIES |
|
|
|
|
|
|
||
Accounts payable and accrued liabilities |
|
$ |
230,709 |
|
|
$ |
136,340 |
|
Accrued compensation |
|
|
184,254 |
|
|
|
419,560 |
|
Operating lease liabilities |
|
|
19,615 |
|
|
|
21,369 |
|
Tax Receivable Agreement liabilities |
|
|
22,075 |
|
|
|
— |
|
Short-term debt and current portion of long-term debt |
|
|
39,374 |
|
|
|
35,375 |
|
Fiduciary liabilities |
|
|
3,181,352 |
|
|
|
3,131,660 |
|
Total current liabilities |
|
$ |
3,677,379 |
|
|
$ |
3,744,304 |
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
||
Accrued compensation |
|
|
30,012 |
|
|
|
24,917 |
|
Operating lease liabilities |
|
|
147,700 |
|
|
|
154,457 |
|
Long-term debt |
|
|
1,942,542 |
|
|
|
1,943,837 |
|
Tax Receivable Agreement liabilities |
|
|
338,942 |
|
|
|
358,898 |
|
Other non-current liabilities |
|
|
5,174 |
|
|
|
41,152 |
|
Total non-current liabilities |
|
$ |
2,464,370 |
|
|
$ |
2,523,261 |
|
TOTAL LIABILITIES |
|
$ |
6,141,749 |
|
|
$ |
6,267,565 |
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Class A common stock ($0.001 par value; 1,000,000,000 shares authorized, 118,737,470 and 118,593,062 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively) |
|
|
119 |
|
|
|
119 |
|
Class B common stock ($0.001 par value; 1,000,000,000 shares authorized, 141,486,229 and 141,621,188 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively) |
|
|
142 |
|
|
|
142 |
|
Class X common stock ($0.001 par value; 10,000,000 shares authorized, 640,784 shares issued and 0 outstanding at March 31, 2024 and December 31, 2023) |
|
|
— |
|
|
|
— |
|
Preferred stock ($0.001 par value; 500,000,000 shares authorized, 0 shares issued and outstanding at March 31, 2024 and December 31, 2023) |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
459,456 |
|
|
|
441,997 |
|
Retained earnings |
|
|
88,537 |
|
|
|
114,420 |
|
Accumulated other comprehensive income |
|
|
6,096 |
|
|
|
3,076 |
|
Total stockholders’ equity attributable to Ryan Specialty Holdings, Inc. |
|
$ |
554,350 |
|
|
$ |
559,754 |
|
Non-controlling interests |
|
|
420,403 |
|
|
|
419,890 |
|
Total stockholders’ equity |
|
$ |
974,753 |
|
|
$ |
979,644 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
7,116,502 |
|
|
$ |
7,247,209 |
|
Consolidated Statements of Cash Flows (Unaudited)
|
|
Three Months Ended March 31, |
|
|||||
(in thousands) |
|
2024 |
|
|
2023 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
||
Net income |
|
$ |
40,677 |
|
|
$ |
36,457 |
|
Adjustments to reconcile net income to cash flows used in operating activities: |
|
|
|
|
|
|
||
(Income) from equity method investment in related party |
|
|
(5,606 |
) |
|
|
(1,995 |
) |
Amortization |
|
|
27,988 |
|
|
|
25,185 |
|
Depreciation |
|
|
2,080 |
|
|
|
2,192 |
|
Prepaid and deferred compensation expense |
|
|
918 |
|
|
|
2,212 |
|
Non-cash equity-based compensation |
|
|
17,310 |
|
|
|
17,879 |
|
Amortization of deferred debt issuance costs |
|
|
3,409 |
|
|
|
3,039 |
|
Amortization of interest rate cap premium |
|
|
1,739 |
|
|
|
1,739 |
|
Deferred income tax expense |
|
|
2,139 |
|
|
|
2,875 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
||
Commissions and fees receivable – net |
|
|
(4,751 |
) |
|
|
(1,212 |
) |
Accrued interest liability |
|
|
5,958 |
|
|
|
(4,743 |
) |
Other current and non-current assets |
|
|
2,061 |
|
|
|
11,197 |
|
Other current and non-current accrued liabilities |
|
|
(210,461 |
) |
|
|
(254,036 |
) |
Total cash flows used in operating activities |
|
$ |
(116,539 |
) |
|
$ |
(159,211 |
) |
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
||
Business combinations – net of cash acquired and cash held in a fiduciary capacity |
|
|
— |
|
|
|
(102,059 |
) |
Capital expenditures |
|
|
(7,628 |
) |
|
|
(2,793 |
) |
Total cash flows used in investing activities |
|
$ |
(7,628 |
) |
|
$ |
(104,852 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
||
Repayment of term debt |
|
|
— |
|
|
|
(4,125 |
) |
Payment of contingent consideration |
|
|
— |
|
|
|
(4,477 |
) |
Tax distributions to non-controlling LLC Unitholders |
|
|
— |
|
|
|
(264 |
) |
Receipt of taxes related to net share settlement of equity awards |
|
|
130 |
|
|
|
404 |
|
Taxes paid related to net share settlement of equity awards |
|
|
(130 |
) |
|
|
(404 |
) |
Dividends paid to Class A common shareholders |
|
|
(40,021 |
) |
|
|
— |
|
Distributions to non-controlling LLC Unitholders |
|
|
(5,617 |
) |
|
|
— |
|
Payment of accrued return on Ryan Re preferred units |
|
|
(1,883 |
) |
|
|
— |
|
Net change in fiduciary liabilities |
|
|
37,326 |
|
|
|
(20,754 |
) |
Total cash flows used in financing activities |
|
$ |
(10,195 |
) |
|
$ |
(29,620 |
) |
Effect of changes in foreign exchange rates on cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity |
|
|
(657 |
) |
|
|
85 |
|
NET CHANGE IN CASH, CASH EQUIVALENTS, AND CASH AND CASH EQUIVALENTS HELD IN A FIDUCIARY CAPACITY |
|
$ |
(135,019 |
) |
|
$ |
(293,598 |
) |
CASH, CASH EQUIVALENTS, AND CASH AND CASH EQUIVALENTS HELD IN A FIDUCIARY CAPACITY—Beginning balance |
|
|
1,756,332 |
|
|
|
1,767,385 |
|
CASH, CASH EQUIVALENTS, AND CASH AND CASH EQUIVALENTS HELD IN A FIDUCIARY CAPACITY—Ending balance |
|
$ |
1,621,313 |
|
|
$ |
1,473,787 |
|
Reconciliation of cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
665,420 |
|
|
|
704,746 |
|
Cash and cash equivalents held in a fiduciary capacity |
|
|
955,893 |
|
|
|
769,041 |
|
Total cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity |
|
$ |
1,621,313 |
|
|
$ |
1,473,787 |
|
Reconciliation of Organic Revenue Growth Rate
Legacy Calculation Methodology Applied to Current Period |
|
|||||||
|
|
Three Months Ended March 31, |
|
|||||
(in thousands, except percentages) |
|
2024 |
|
|
2023 |
|
||
Current period Total revenue |
|
$ |
552,046 |
|
|
$ |
457,599 |
|
Prior period Total revenue |
|
|
457,599 |
|
|
|
386,890 |
|
Change in Total revenue |
|
$ |
94,447 |
|
|
$ |
70,709 |
|
|
|
|
|
|
|
|
||
Mergers and acquisitions revenue |
|
$ |
28,539 |
|
|
$ |
6,101 |
|
Change in other |
|
|
7,264 |
|
|
|
14,778 |
|
Organic revenue growth |
|
$ |
58,644 |
|
|
$ |
49,830 |
|
|
|
|
|
|
|
|
||
Total revenue growth rate (GAAP) (1) |
|
|
20.6 |
% |
|
|
18.3 |
% |
Less: Mergers and acquisitions (2) |
|
|
(6.2 |
) |
|
|
(1.6 |
) |
Change in other (3) |
|
|
(1.6 |
) |
|
|
(3.8 |
) |
Organic revenue growth rate (Non-GAAP) |
|
|
12.8 |
% |
|
|
12.9 |
% |
(1) |
Calculated by dividing the change in Total revenue by the prior period Total revenue. |
|
(2) |
Calculated by taking the mergers and acquisitions revenue, representing the first 12 months of net commissions and fees revenue generated from acquisitions, divided by prior period Total revenue. |
|
(3) |
Calculated by taking the change in other, representing the year-over-year change in contingent commissions, fiduciary investment income, and foreign exchange rates, divided by prior period Total revenue. |
Revised Calculation Methodology Applied to Current Period |
|
|||||||
|
|
Three Months Ended March 31, |
|
|||||
(in thousands, except percentages) |
|
2024 |
|
|
2023 |
|
||
Current period Net commissions and fees revenue |
|
$ |
537,887 |
|
|
$ |
447,513 |
|
Less: Current period contingent commissions |
|
|
(24,503 |
) |
|
|
(21,635 |
) |
Net Commissions and fees revenue excluding contingent commissions |
|
$ |
513,385 |
|
|
$ |
425,878 |
|
|
|
|
|
|
|
|
||
Prior period Net commissions and fees revenue |
|
$ |
447,513 |
|
|
$ |
386,681 |
|
Less: Prior year contingent commissions |
|
|
(21,635 |
) |
|
|
(15,209 |
) |
Prior period Net commissions and fees revenue excluding contingent commissions |
|
$ |
425,878 |
|
|
$ |
371,472 |
|
|
|
|
|
|
|
|
||
Change in Net commissions and fees revenue excluding contingent commissions |
|
$ |
87,507 |
|
|
$ |
54,406 |
|
Less: Mergers and acquisitions Net commissions and fees revenue excluding contingent commissions |
|
|
(28,539 |
) |
|
|
(5,373 |
) |
Impact of change in foreign exchange rates |
|
|
(323 |
) |
|
|
797 |
|
Organic revenue growth (Non-GAAP) |
|
$ |
58,644 |
|
|
$ |
49,830 |
|
|
|
|
|
|
|
|
||
Net commissions and fees revenue growth rate (GAAP) |
|
|
20.2 |
% |
|
|
15.7 |
% |
Less: Impact of contingent commissions (1) |
|
|
0.3 |
|
|
|
(1.1 |
) |
Net commissions and fees revenue excluding contingent commissions growth rate (2) |
|
|
20.5 |
% |
|
|
14.6 |
% |
Less: Mergers and acquisitions Net commissions and fees revenue excluding contingent commissions (3) |
|
|
(6.7 |
) |
|
|
(1.4 |
) |
Impact of change in foreign exchange rates (4) |
|
|
(0.1 |
) |
|
|
0.2 |
|
Organic Revenue Growth Rate (Non-GAAP) |
|
|
13.7 |
% |
|
|
13.4 |
% |
(1) |
Calculated by subtracting Net commissions and fees revenue growth rate from net commissions and fees revenue excluding contingent commissions growth rate. |
|
(2) |
Calculated by dividing the change in Total net commissions & fees revenue excluding contingent commissions by prior year net commissions and fees excluding contingent commissions. |
|
(3) |
Calculated by taking the mergers and acquisitions net commissions and fees revenue excluding contingent commissions, representing the first 12 months of net commissions and fees revenue generated from acquisitions, divided by prior period net commissions and fees revenue excluding contingent commissions. |
|
(4) |
Calculated by taking the change in foreign exchange rates divided by prior period net commissions and fees revenue excluding contingent commissions. |
Reconciliation of Adjusted Compensation and Benefits Expense to Compensation and Benefits Expense
|
|
Three Months Ended
|
|
|||||
(in thousands, except percentages) |
|
2024 |
|
|
2023 |
|
||
Total revenue |
|
$ |
552,046 |
|
|
$ |
457,599 |
|
Compensation and benefits expense |
|
$ |
373,527 |
|
|
$ |
307,722 |
|
Acquisition-related expense |
|
|
(226 |
) |
|
|
(1,016 |
) |
Acquisition related long-term incentive compensation |
|
|
1,627 |
|
|
|
(578 |
) |
Restructuring and related expense |
|
|
(26,184 |
) |
|
|
(730 |
) |
Amortization and expense related to discontinued prepaid incentives |
|
|
(1,412 |
) |
|
|
(1,634 |
) |
Equity-based compensation |
|
|
(9,515 |
) |
|
|
(6,635 |
) |
Initial public offering related expense |
|
|
(7,795 |
) |
|
|
(11,244 |
) |
Adjusted compensation and benefits expense (1) |
|
$ |
330,022 |
|
|
$ |
285,885 |
|
Compensation and benefits expense ratio |
|
|
67.7 |
% |
|
|
67.2 |
% |
Adjusted compensation and benefits expense ratio |
|
|
59.8 |
% |
|
|
62.5 |
% |
(1) |
Adjustments made to Compensation and benefits expense are described in the definition of Adjusted EBITDAC in “Non-GAAP Financial Measures and Key Performance Indicators.” |
Reconciliation of Adjusted General and Administrative Expense to General and Administrative Expense
|
|
Three Months Ended
|
|
|||||
(in thousands, except percentages) |
|
2024 |
|
|
2023 |
|
||
Total revenue |
|
$ |
552,046 |
|
|
$ |
457,599 |
|
General and administrative expense |
|
$ |
75,867 |
|
|
$ |
51,699 |
|
Acquisition-related expense |
|
|
(8,211 |
) |
|
|
(2,174 |
) |
Restructuring and related expense |
|
|
(2,854 |
) |
|
|
(2,826 |
) |
Adjusted general and administrative expense (1) |
|
$ |
64,802 |
|
|
$ |
46,699 |
|
General and administrative expense ratio |
|
|
13.7 |
% |
|
|
11.3 |
% |
Adjusted general and administrative expense ratio |
|
|
11.7 |
% |
|
|
10.2 |
% |
(1) |
Adjustments made to General and administrative expense are described in the definition of Adjusted EBITDAC in “Non-GAAP Financial Measures and Key Performance Indicators.” |
Reconciliation of Adjusted EBITDAC to Net Income
|
|
Three Months Ended
|
|
|||||
(in thousands, except percentages) |
|
2024 |
|
|
2023 |
|
||
Total revenue |
|
$ |
552,046 |
|
|
$ |
457,599 |
|
Net income |
|
$ |
40,677 |
|
|
$ |
36,457 |
|
Interest expense, net |
|
|
29,400 |
|
|
|
29,468 |
|
Income tax expense |
|
|
6,426 |
|
|
|
6,295 |
|
Depreciation |
|
|
2,080 |
|
|
|
2,192 |
|
Amortization |
|
|
27,988 |
|
|
|
25,185 |
|
Change in contingent consideration |
|
|
(65 |
) |
|
|
714 |
|
EBITDAC |
|
$ |
106,506 |
|
|
$ |
100,311 |
|
Acquisition-related expense |
|
|
8,437 |
|
|
|
3,190 |
|
Acquisition related long-term incentive compensation |
|
|
(1,627 |
) |
|
|
578 |
|
Restructuring and related expense |
|
|
29,038 |
|
|
|
3,556 |
|
Amortization and expense related to discontinued prepaid incentives |
|
|
1,412 |
|
|
|
1,634 |
|
Other non-operating loss (income) |
|
|
1,752 |
|
|
|
(138 |
) |
Equity-based compensation |
|
|
9,515 |
|
|
|
6,635 |
|
IPO related expenses |
|
|
7,795 |
|
|
|
11,244 |
|
(Income) from equity method investments in related party |
|
|
(5,606 |
) |
|
|
(1,995 |
) |
Adjusted EBITDAC (1) |
|
$ |
157,222 |
|
|
$ |
125,015 |
|
Net income margin |
|
|
7.4 |
% |
|
|
8.0 |
% |
Adjusted EBITDAC margin |
|
|
28.5 |
% |
|
|
27.3 |
% |
(1) |
Adjustments made to Net income are described in the definition of Adjusted EBITDAC in “Non-GAAP Financial Measures and Key Performance Indicators.” |
Reconciliation of Adjusted Net Income to Net Income
|
|
Three Months Ended
|
|
|||||
(in thousands, except percentages) |
|
2024 |
|
|
2023 |
|
||
Total revenue |
|
$ |
552,046 |
|
|
$ |
457,599 |
|
Net income |
|
$ |
40,677 |
|
|
$ |
36,457 |
|
Income tax expense |
|
|
6,426 |
|
|
|
6,295 |
|
Amortization |
|
|
27,988 |
|
|
|
25,185 |
|
Amortization of deferred debt issuance costs (1) |
|
|
3,409 |
|
|
|
3,039 |
|
Change in contingent consideration |
|
|
(65 |
) |
|
|
714 |
|
Acquisition-related expense |
|
|
8,437 |
|
|
|
3,190 |
|
Acquisition related long-term incentive compensation |
|
|
(1,627 |
) |
|
|
578 |
|
Restructuring and related expense |
|
|
29,038 |
|
|
|
3,556 |
|
Amortization and expense related to discontinued prepaid incentives |
|
|
1,412 |
|
|
|
1,634 |
|
Other non-operating loss (income) |
|
|
1,752 |
|
|
|
(138 |
) |
Equity-based compensation |
|
|
9,515 |
|
|
|
6,635 |
|
IPO related expenses |
|
|
7,795 |
|
|
|
11,244 |
|
(Income) from equity method investments in related party |
|
|
(5,606 |
) |
|
|
(1,995 |
) |
Adjusted income before income taxes (2) |
|
$ |
129,151 |
|
|
$ |
96,394 |
|
Adjusted tax expense (3) |
|
|
(33,734 |
) |
|
|
(24,609 |
) |
Adjusted net income |
|
$ |
95,417 |
|
|
$ |
71,785 |
|
Net income margin |
|
|
7.4 |
% |
|
|
8.0 |
% |
Adjusted net income margin |
|
|
17.3 |
% |
|
|
15.7 |
% |
(1) |
Interest expense, net includes amortization of deferred debt issuance costs. |
|
(2) |
Adjustments made to Net income are described in the definition of Adjusted EBITDAC in “Non-GAAP Financial Measures and Key Performance Indicators.” |
|
(3) |
The Company is subject to United States federal income taxes, in addition to state, local, and foreign taxes, with respect to our allocable share of any net taxable income of the LLC. For the three months ended March 31, 2024 this calculation of adjusted tax expense is based on a federal statutory rate of 21% and a combined state income tax rate net of federal benefits of 5.12% on 100% of adjusted income before income taxes as if the Company owned 100% of the LLC. For the three months ended March 31, 2023, this calculation of adjusted tax expense is based on a federal statutory rate of 21% and a combined state income tax rate net of federal benefits of 4.53% on 100% of adjusted income before income taxes as if the Company owned 100% of the LLC. |
Reconciliation of Adjusted Diluted Earnings per Share to Diluted Earnings per Share
|
|
Three Months Ended
|
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Earnings per share of Class A common stock – diluted |
|
$ |
0.13 |
|
|
$ |
0.11 |
|
Less: Net income attributed to dilutive shares and substantively vested RSUs (1) |
|
|
(0.07 |
) |
|
|
(0.06 |
) |
Plus: Impact of all LLC Common Units exchanged for Class A shares (2) |
|
|
0.09 |
|
|
|
0.09 |
|
Plus: Adjustments to Adjusted net income (3) |
|
|
0.20 |
|
|
|
0.13 |
|
Plus: Dilutive impact of unvested equity awards (4) |
|
|
— |
|
|
|
(0.01 |
) |
Adjusted diluted earnings per share |
|
$ |
0.35 |
|
|
$ |
0.26 |
|
|
|
|
|
|
|
|
||
(Share count in '000) |
|
|
|
|
|
|
||
Weighted-average shares of Class A common stock outstanding – diluted |
|
|
269,922 |
|
|
|
266,978 |
|
Plus: Impact of all LLC Common Units exchanged for Class A shares (2) |
|
|
— |
|
|
|
— |
|
Plus: Dilutive impact of unvested equity awards (4) |
|
|
4,854 |
|
|
|
4,670 |
|
Adjusted diluted earnings per share diluted share count |
|
|
274,776 |
|
|
|
271,648 |
|
(1) |
Adjustment removes the impact of Net income attributed to dilutive awards and substantively vested RSUs to arrive at Net income attributable to Ryan Specialty Holdings, Inc. For the three months ended March 31, 2024 and 2023, this removes $17.7 million and $17.4 million of Net income, respectively, on 269.9 million and 267.0 million Weighted-average shares of Class A common stock outstanding - diluted, respectively. See “Note 10, Earnings Per Share” of the unaudited quarterly consolidated financial statements. |
|
(2) |
For comparability purposes, this calculation incorporates the Net income that would be distributable if all LLC Common Units (together with shares of Class B common stock) and vested Class C Incentive units were exchanged for shares of Class A common stock. For the three months ended March 31, 2024 and 2023, this includes $24.1 million and $23.3 million of Net income, respectively, on 269.9 million and 267.0 million Weighted-average shares of Class A common stock outstanding - diluted, respectively. For the three months ended March 31, 2024, 140.4 million weighted average outstanding LLC Common Units were considered dilutive and included in the 269.9 million Weighted-average shares of Class A common stock outstanding - diluted within Diluted EPS. For the three months ended March 31, 2023, 143.4 million weighted-average outstanding LLC Common Units were considered dilutive and included in the 267.0 million Weighted-average shares of Class A common stock outstanding - diluted within Diluted EPS. See “Note 10, Earnings Per Share” of the unaudited quarterly consolidated financial statements. |
|
(3) |
Adjustments to Adjusted net income are described in the footnotes of the reconciliation of Adjusted net income to Net income in “Adjusted Net Income and Adjusted Net Income Margin” on 269.9 million and 267.0 million Weighted-average shares of Class A common stock outstanding - diluted for the three months ended March 31, 2024 and 2023, respectively. |
|
(4) |
For comparability purposes and to be consistent with the treatment of the adjustments to arrive at Adjusted net income, the dilutive effect of unvested equity awards is calculated using the treasury stock method as if the weighted-average unrecognized cost associated with the awards was $0 over the period, less any unvested equity awards determined to be dilutive within the Diluted EPS calculation disclosed in “Note 10, Earnings Per Share” of the unaudited quarterly consolidated financial statements. For the three months ended March 31, 2024 and 2023, 4.9 million and 4.7 million shares were added to the calculation, respectively. |
Historical Presentation of Organic Revenue Growth Applying Revised Calculation Methodology
|
|
Year Ended |
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||
(in thousands, except percentages) |
|
Dec. 31, 2019 |
|
|
Mar. 31, 2020 |
|
|
Jun. 30, 2020 |
|
|
Jun. 30, 2020 |
|
|
Sep. 30, 2020 |
|
|
Sep. 30, 2020 |
|
|
Dec. 31, 2020 |
|
|
Dec. 31, 2020 |
|
||||||||
Current period Net commissions and fees revenue |
|
$ |
758,447 |
|
|
$ |
207,085 |
|
|
$ |
246,049 |
|
|
$ |
453,134 |
|
|
$ |
236,698 |
|
|
$ |
689,832 |
|
|
$ |
326,852 |
|
|
$ |
1,016,684 |
|
Less: Current period contingent commissions |
|
|
(16,398 |
) |
|
|
(9,887 |
) |
|
|
(4,358 |
) |
|
|
(14,245 |
) |
|
|
(2,400 |
) |
|
|
(16,645 |
) |
|
|
(3,262 |
) |
|
|
(19,907 |
) |
Net Commissions and fees revenue
|
|
$ |
742,049 |
|
|
$ |
197,198 |
|
|
$ |
241,691 |
|
|
$ |
438,889 |
|
|
$ |
234,298 |
|
|
$ |
673,187 |
|
|
$ |
323,591 |
|
|
$ |
996,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Prior period Net commissions and fees revenue |
|
$ |
606,961 |
|
|
$ |
147,991 |
|
|
$ |
200,541 |
|
|
$ |
348,532 |
|
|
$ |
191,517 |
|
|
$ |
540,049 |
|
|
$ |
218,398 |
|
|
$ |
758,447 |
|
Less: Prior year contingent commissions |
|
|
(11,203 |
) |
|
|
(7,559 |
) |
|
|
(3,964 |
) |
|
|
(11,523 |
) |
|
|
(2,157 |
) |
|
|
(13,680 |
) |
|
|
(2,718 |
) |
|
|
(16,398 |
) |
Prior period Net commissions and fees revenue
|
|
$ |
595,758 |
|
|
$ |
140,432 |
|
|
$ |
196,577 |
|
|
$ |
337,009 |
|
|
$ |
189,360 |
|
|
$ |
526,369 |
|
|
$ |
215,680 |
|
|
$ |
742,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Change in Net commissions and fees revenue
|
|
$ |
146,291 |
|
|
$ |
56,765 |
|
|
$ |
45,114 |
|
|
$ |
101,880 |
|
|
$ |
44,938 |
|
|
$ |
146,818 |
|
|
$ |
107,911 |
|
|
$ |
254,729 |
|
Less: Mergers and acquisitions Net commissions and fees revenue excluding contingent commissions |
|
|
(40,899 |
) |
|
|
(11,846 |
) |
|
|
(8,179 |
) |
|
|
(20,025 |
) |
|
|
(18,205 |
) |
|
|
(38,231 |
) |
|
|
(57,664 |
) |
|
|
(96,042 |
) |
Impact of change in foreign exchange rates |
|
|
1,336 |
|
|
|
80 |
|
|
|
583 |
|
|
|
662 |
|
|
|
(405 |
) |
|
|
258 |
|
|
|
(2,398 |
) |
|
|
(1,992 |
) |
Organic revenue growth (Non-GAAP) |
|
$ |
106,728 |
|
|
$ |
44,999 |
|
|
$ |
37,518 |
|
|
$ |
82,517 |
|
|
$ |
26,328 |
|
|
$ |
108,845 |
|
|
$ |
47,850 |
|
|
$ |
156,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net commissions and fees revenue growth rate (GAAP) |
|
|
25.0 |
% |
|
|
39.9 |
% |
|
|
22.7 |
% |
|
|
30.0 |
% |
|
|
23.6 |
% |
|
|
27.7 |
% |
|
|
49.7 |
% |
|
|
34.0 |
% |
Less: Impact of contingent commissions (1) |
|
|
(0.4 |
) |
|
|
0.5 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.1 |
|
|
|
0.2 |
|
|
|
0.3 |
|
|
|
0.3 |
|
Net commissions and fees revenue
|
|
|
24.6 |
% |
|
|
40.4 |
% |
|
|
22.9 |
% |
|
|
30.2 |
% |
|
|
23.7 |
% |
|
|
27.9 |
% |
|
|
50.0 |
% |
|
|
34.3 |
% |
Less: Mergers and acquisitions Net commissions and fees revenue excluding contingent commissions (3) |
|
|
(6.9 |
) |
|
|
(8.4 |
) |
|
|
(4.2 |
) |
|
|
(5.9 |
) |
|
|
(9.6 |
) |
|
|
(7.3 |
) |
|
|
(26.7 |
) |
|
|
(12.9 |
) |
Impact of change in foreign exchange rates (4) |
|
|
0.2 |
|
|
|
0.1 |
|
|
|
0.3 |
|
|
|
0.2 |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
(1.1 |
) |
|
|
(0.3 |
) |
Organic Revenue Growth Rate (Non-GAAP) |
|
|
17.9 |
% |
|
|
32.1 |
% |
|
|
19.0 |
% |
|
|
24.5 |
% |
|
|
13.9 |
% |
|
|
20.6 |
% |
|
|
22.2 |
% |
|
|
21.1 |
% |
(1) |
Calculated by subtracting Net commissions and fees revenue growth rate from net commissions and fees revenue excluding contingent commissions growth rate. |
|
(2) |
Calculated by dividing the change in Total net commissions & fees revenue excluding contingent commissions by prior year net commissions and fees excluding contingent commissions. |
|
(3) |
Calculated by taking the mergers and acquisitions net commissions and fees revenue excluding contingent commissions, representing the first 12 months of net commissions and fees revenue generated from acquisitions, divided by prior period net commissions and fees revenue excluding contingent commissions. |
|
(4) |
Calculated by taking the change in foreign exchange rates divided by prior period net commissions and fees revenue excluding contingent commissions. |
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
Three Months Ended |
|
|
Year Ended |
|
|||||||
(in thousands, except percentages) |
|
Mar. 31, 2021 |
|
|
Jun. 30, 2021 |
|
|
Jun. 30, 2021 |
|
|
Sep. 30, 2021 |
|
|
Sep. 30, 2021 |
|
|
Dec. 31, 2021 |
|
|
Dec. 31, 2021 |
|
|||||||
Current period Net commissions and fees revenue |
|
$ |
311,344 |
|
|
$ |
389,846 |
|
|
$ |
701,190 |
|
|
$ |
352,610 |
|
|
$ |
1,053,800 |
|
|
$ |
378,379 |
|
|
$ |
1,432,179 |
|
Less: Current period contingent commissions |
|
|
(12,607 |
) |
|
|
(2,651 |
) |
|
|
(15,258 |
) |
|
|
(4,816 |
) |
|
|
(20,074 |
) |
|
|
(2,921 |
) |
|
|
(22,995 |
) |
Net Commissions and fees revenue
|
|
$ |
298,737 |
|
|
$ |
387,195 |
|
|
$ |
685,932 |
|
|
$ |
347,793 |
|
|
$ |
1,033,726 |
|
|
$ |
375,457 |
|
|
$ |
1,409,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Prior period Net commissions and fees revenue |
|
$ |
207,085 |
|
|
$ |
246,049 |
|
|
$ |
453,134 |
|
|
$ |
236,698 |
|
|
$ |
689,832 |
|
|
$ |
326,852 |
|
|
$ |
1,016,684 |
|
Less: Prior year contingent commissions |
|
|
(9,887 |
) |
|
|
(4,358 |
) |
|
|
(14,245 |
) |
|
|
(2,400 |
) |
|
|
(16,645 |
) |
|
|
(3,262 |
) |
|
|
(19,907 |
) |
Prior period Net commissions and fees revenue
|
|
$ |
197,198 |
|
|
$ |
241,691 |
|
|
$ |
438,889 |
|
|
$ |
234,298 |
|
|
$ |
673,187 |
|
|
$ |
323,591 |
|
|
$ |
996,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Change in Net commissions and fees revenue
|
|
$ |
101,539 |
|
|
$ |
145,504 |
|
|
$ |
247,043 |
|
|
$ |
113,495 |
|
|
$ |
360,539 |
|
|
$ |
51,867 |
|
|
$ |
412,405 |
|
Less: Mergers and acquisitions Net commissions and fees revenue excluding contingent commissions |
|
|
(62,947 |
) |
|
|
(74,296 |
) |
|
|
(137,233 |
) |
|
|
(44,412 |
) |
|
|
(181,693 |
) |
|
|
(1,730 |
) |
|
|
(183,409 |
) |
Impact of change in foreign exchange rates |
|
|
(354 |
) |
|
|
(981 |
) |
|
|
(1,290 |
) |
|
|
(426 |
) |
|
|
(1,648 |
) |
|
|
125 |
|
|
|
(1,412 |
) |
Organic revenue growth (Non-GAAP) |
|
$ |
38,238 |
|
|
$ |
70,227 |
|
|
$ |
108,520 |
|
|
$ |
68,657 |
|
|
$ |
177,198 |
|
|
$ |
50,261 |
|
|
$ |
227,585 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net commissions and fees revenue growth rate (GAAP) |
|
|
50.3 |
% |
|
|
58.4 |
% |
|
|
54.7 |
% |
|
|
49.0 |
% |
|
|
52.8 |
% |
|
|
15.8 |
% |
|
|
40.9 |
% |
Less: Impact of contingent commissions (1) |
|
|
1.2 |
|
|
|
1.8 |
|
|
|
1.6 |
|
|
|
(0.6 |
) |
|
|
0.8 |
|
|
|
0.2 |
|
|
|
0.5 |
|
Net commissions and fees revenue
|
|
|
51.5 |
% |
|
|
60.2 |
% |
|
|
56.3 |
% |
|
|
48.4 |
% |
|
|
53.6 |
% |
|
|
16.0 |
% |
|
|
41.4 |
% |
Less: Mergers and acquisitions Net commissions and fees revenue excluding contingent commissions (3) |
|
|
(31.9 |
) |
|
|
(30.7 |
) |
|
|
(31.3 |
) |
|
|
(19.0 |
) |
|
|
(27.0 |
) |
|
|
(0.5 |
) |
|
|
(18.4 |
) |
Impact of change in foreign exchange rates (4) |
|
|
(0.2 |
) |
|
|
(0.4 |
) |
|
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
|
|
— |
|
|
|
(0.1 |
) |
Organic Revenue Growth Rate (Non-GAAP) |
|
|
19.4 |
% |
|
|
29.1 |
% |
|
|
24.7 |
% |
|
|
29.2 |
% |
|
|
26.4 |
% |
|
|
15.5 |
% |
|
|
22.9 |
% |
(1) |
Calculated by subtracting Net commissions and fees revenue growth rate from net commissions and fees revenue excluding contingent commissions growth rate. |
|
(2) |
Calculated by dividing the change in Total net commissions & fees revenue excluding contingent commissions by prior year net commissions and fees excluding contingent commissions. |
|
(3) |
Calculated by taking the mergers and acquisitions net commissions and fees revenue excluding contingent commissions, representing the first 12 months of net commissions and fees revenue generated from acquisitions, divided by prior period net commissions and fees revenue excluding contingent commissions. |
|
(4) |
Calculated by taking the change in foreign exchange rates divided by prior period net commissions and fees revenue excluding contingent commissions. |
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
Three Months Ended |
|
|
Year Ended |
|
|||||||
(in thousands, except percentages) |
|
Mar. 31, 2022 |
|
|
Jun. 30, 2022 |
|
|
Jun. 30, 2022 |
|
|
Sep. 30, 2022 |
|
|
Sep. 30, 2022 |
|
|
Dec. 31, 2022 |
|
|
Dec. 31, 2022 |
|
|||||||
Current period Net commissions and fees revenue |
|
$ |
386,681 |
|
|
$ |
490,227 |
|
|
$ |
876,908 |
|
|
$ |
407,551 |
|
|
$ |
1,284,459 |
|
|
$ |
427,402 |
|
|
$ |
1,711,861 |
|
Less: Current period contingent commissions |
|
|
(15,209 |
) |
|
|
(6,730 |
) |
|
|
(21,939 |
) |
|
|
(3,039 |
) |
|
|
(24,978 |
) |
|
|
(5,810 |
) |
|
|
(30,788 |
) |
Net Commissions and fees revenue
|
|
$ |
371,472 |
|
|
$ |
483,498 |
|
|
$ |
854,970 |
|
|
$ |
404,512 |
|
|
$ |
1,259,481 |
|
|
$ |
421,592 |
|
|
$ |
1,681,073 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Prior period Net commissions and fees revenue |
|
$ |
311,344 |
|
|
$ |
389,846 |
|
|
$ |
701,190 |
|
|
$ |
352,610 |
|
|
$ |
1,053,800 |
|
|
$ |
378,379 |
|
|
$ |
1,432,179 |
|
Less: Prior year contingent commissions |
|
|
(12,607 |
) |
|
|
(2,651 |
) |
|
|
(15,258 |
) |
|
|
(4,816 |
) |
|
|
(20,074 |
) |
|
|
(2,921 |
) |
|
|
(22,995 |
) |
Prior period Net commissions and fees revenue
|
|
$ |
298,737 |
|
|
$ |
387,195 |
|
|
$ |
685,932 |
|
|
$ |
347,793 |
|
|
$ |
1,033,726 |
|
|
$ |
375,457 |
|
|
$ |
1,409,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Change in Net commissions and fees revenue
|
|
$ |
72,735 |
|
|
$ |
96,302 |
|
|
$ |
169,037 |
|
|
$ |
56,718 |
|
|
$ |
225,755 |
|
|
$ |
46,135 |
|
|
$ |
271,890 |
|
Less: Mergers and acquisitions Net commissions and fees revenue excluding contingent commissions |
|
|
(10,555 |
) |
|
|
(11,041 |
) |
|
|
(21,595 |
) |
|
|
(9,882 |
) |
|
|
(31,502 |
) |
|
|
(8,490 |
) |
|
|
(39,992 |
) |
Impact of change in foreign exchange rates |
|
|
477 |
|
|
|
1,256 |
|
|
|
1,652 |
|
|
|
1,539 |
|
|
|
3,217 |
|
|
|
1,410 |
|
|
|
4,561 |
|
Organic revenue growth (Non-GAAP) |
|
$ |
62,657 |
|
|
$ |
86,517 |
|
|
$ |
149,094 |
|
|
$ |
48,375 |
|
|
$ |
197,470 |
|
|
$ |
39,054 |
|
|
$ |
236,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net commissions and fees revenue growth rate (GAAP) |
|
|
24.2 |
% |
|
|
25.7 |
% |
|
|
25.1 |
% |
|
|
15.6 |
% |
|
|
21.9 |
% |
|
|
13.0 |
% |
|
|
19.5 |
% |
Less: Impact of contingent commissions (1) |
|
|
0.1 |
|
|
|
(0.8 |
) |
|
|
(0.5 |
) |
|
|
0.7 |
|
|
|
(0.1 |
) |
|
|
(0.7 |
) |
|
|
(0.2 |
) |
Net commissions and fees revenue
|
|
|
24.3 |
% |
|
|
24.9 |
% |
|
|
24.6 |
% |
|
|
16.3 |
% |
|
|
21.8 |
% |
|
|
12.3 |
% |
|
|
19.3 |
% |
Less: Mergers and acquisitions Net commissions and fees revenue excluding contingent commissions (3) |
|
|
(3.5 |
) |
|
|
(2.9 |
) |
|
|
(3.1 |
) |
|
|
(2.8 |
) |
|
|
(3.0 |
) |
|
|
(2.3 |
) |
|
|
(2.8 |
) |
Impact of change in foreign exchange rates (4) |
|
|
0.2 |
|
|
|
0.3 |
|
|
|
0.2 |
|
|
|
0.4 |
|
|
|
0.3 |
|
|
|
0.4 |
|
|
|
0.3 |
|
Organic Revenue Growth Rate (Non-GAAP) |
|
|
21.0 |
% |
|
|
22.3 |
% |
|
|
21.7 |
% |
|
|
13.9 |
% |
|
|
19.1 |
% |
|
|
10.4 |
% |
|
|
16.8 |
% |
(1) |
Calculated by subtracting Net commissions and fees revenue growth rate from net commissions and fees revenue excluding contingent commissions growth rate. |
|
(2) |
Calculated by dividing the change in Total net commissions & fees revenue excluding contingent commissions by prior year net commissions and fees excluding contingent commissions. |
|
(3) |
Calculated by taking the mergers and acquisitions net commissions and fees revenue excluding contingent commissions, representing the first 12 months of net commissions and fees revenue generated from acquisitions, divided by prior period net commissions and fees revenue excluding contingent commissions. |
|
(4) |
Calculated by taking the change in foreign exchange rates divided by prior period net commissions and fees revenue excluding contingent commissions. |
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
Three Months Ended |
|
|
Year Ended |
|
|
Three Months Ended |
|
||||||||
(in thousands, except percentages) |
|
Mar. 31, 2023 |
|
|
Jun. 30, 2023 |
|
|
Jun. 30, 2023 |
|
|
Sep. 30, 2023 |
|
|
Sep. 30, 2023 |
|
|
Dec. 31, 2023 |
|
|
Dec. 31, 2023 |
|
|
Mar. 31, 2024 |
|
||||||||
Current period Net commissions and fees revenue |
|
$ |
447,513 |
|
|
$ |
573,020 |
|
|
$ |
1,020,533 |
|
|
$ |
487,345 |
|
|
$ |
1,507,878 |
|
|
$ |
518,718 |
|
|
$ |
2,026,596 |
|
|
$ |
537,887 |
|
Less: Current period contingent commissions |
|
|
(21,635 |
) |
|
|
(4,502 |
) |
|
|
(26,136 |
) |
|
|
(4,487 |
) |
|
|
(30,624 |
) |
|
|
(8,404 |
) |
|
|
(39,028 |
) |
|
|
(24,503 |
) |
Net Commissions and fees revenue
|
|
$ |
425,878 |
|
|
$ |
568,518 |
|
|
$ |
994,396 |
|
|
$ |
482,858 |
|
|
$ |
1,477,254 |
|
|
$ |
510,313 |
|
|
$ |
1,987,568 |
|
|
$ |
513,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Prior period Net commissions and fees revenue |
|
$ |
386,681 |
|
|
$ |
490,227 |
|
|
$ |
876,908 |
|
|
$ |
407,551 |
|
|
$ |
1,284,459 |
|
|
$ |
427,402 |
|
|
$ |
1,711,861 |
|
|
$ |
447,513 |
|
Less: Prior year contingent commissions |
|
|
(15,209 |
) |
|
|
(6,730 |
) |
|
|
(21,939 |
) |
|
|
(3,039 |
) |
|
|
(24,978 |
) |
|
|
(5,810 |
) |
|
|
(30,788 |
) |
|
|
(21,635 |
) |
Prior period Net commissions and fees revenue
|
|
$ |
371,472 |
|
|
$ |
483,498 |
|
|
$ |
854,970 |
|
|
$ |
404,512 |
|
|
$ |
1,259,481 |
|
|
$ |
421,592 |
|
|
$ |
1,681,073 |
|
|
$ |
425,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Change in Net commissions and fees revenue
|
|
$ |
54,406 |
|
|
$ |
85,021 |
|
|
$ |
139,427 |
|
|
$ |
78,346 |
|
|
$ |
217,773 |
|
|
$ |
88,721 |
|
|
$ |
306,494 |
|
|
$ |
87,507 |
|
Less: Mergers and acquisitions Net commissions and fees revenue excluding contingent commissions |
|
|
(5,373 |
) |
|
|
(6,053 |
) |
|
|
(11,486 |
) |
|
|
(16,980 |
) |
|
|
(28,563 |
) |
|
|
(18,190 |
) |
|
|
(46,496 |
) |
|
|
(28,539 |
) |
Impact of change in foreign exchange rates |
|
|
797 |
|
|
|
13 |
|
|
|
852 |
|
|
|
(739 |
) |
|
|
350 |
|
|
|
(922 |
) |
|
|
(479 |
) |
|
|
(323 |
) |
Organic revenue growth (Non-GAAP) |
|
$ |
49,830 |
|
|
$ |
78,981 |
|
|
$ |
128,793 |
|
|
$ |
60,628 |
|
|
$ |
189,560 |
|
|
$ |
69,609 |
|
|
$ |
259,519 |
|
|
$ |
58,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net commissions and fees revenue growth rate (GAAP) |
|
|
15.7 |
% |
|
|
16.9 |
% |
|
|
16.4 |
% |
|
|
19.6 |
% |
|
|
17.4 |
% |
|
|
21.4 |
% |
|
|
18.4 |
% |
|
|
20.2 |
% |
Less: Impact of contingent commissions (1) |
|
|
(1.1 |
) |
|
|
0.7 |
|
|
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(0.4 |
) |
|
|
(0.2 |
) |
|
|
0.3 |
|
Net commissions and fees revenue
|
|
|
14.6 |
% |
|
|
17.6 |
% |
|
|
16.3 |
% |
|
|
19.4 |
% |
|
|
17.3 |
% |
|
|
21.0 |
% |
|
|
18.2 |
% |
|
|
20.5 |
% |
Less: Mergers and acquisitions Net commissions and fees revenue excluding contingent commissions (3) |
|
|
(1.4 |
) |
|
|
(1.3 |
) |
|
|
(1.3 |
) |
|
|
(4.2 |
) |
|
|
(2.3 |
) |
|
|
(4.3 |
) |
|
|
(2.8 |
) |
|
|
(6.7 |
) |
Impact of change in foreign exchange rates (4) |
|
|
0.2 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
(0.1 |
) |
Organic Revenue Growth Rate (Non-GAAP) |
|
|
13.4 |
% |
|
|
16.3 |
% |
|
|
15.1 |
% |
|
|
15.0 |
% |
|
|
15.0 |
% |
|
|
16.5 |
% |
|
|
15.4 |
% |
|
|
13.7 |
% |
(1) |
Calculated by subtracting Net commissions and fees revenue growth rate from net commissions and fees revenue excluding contingent commissions growth rate. |
|
(2) |
Calculated by dividing the change in Total net commissions & fees revenue excluding contingent commissions by prior year net commissions and fees excluding contingent commissions. |
|
(3) |
Calculated by taking the mergers and acquisitions net commissions and fees revenue excluding contingent commissions, representing the first 12 months of net commissions and fees revenue generated from acquisitions, divided by prior period net commissions and fees revenue excluding contingent commissions. |
|
(4) |
Calculated by taking the change in foreign exchange rates divided by prior period net commissions and fees revenue excluding contingent commissions. |