BRP Group, Inc. Announces Second Quarter 2023 Results

Rhea-AI Summary

BRP Group, Inc. reported its second quarter 2023 results, with revenue growing 28% YoY to $297.2 million. Organic revenue growth was 22% YoY. The company had a GAAP net loss of $43.7 million and an adjusted net income of $32.0 million. Adjusted EBITDA increased by 45% to $61.6 million.

- Second Quarter 2023 Revenue Grew 28% Year-Over-Year to $297.2 Million -

- Second Quarter 2023 Organic Revenue Growth⁽¹⁾ of 22% -

TAMPA, Fla.--(BUSINESS WIRE)-- BRP Group, Inc. (“BRP Group” or the “Company”) (NASDAQ: BRP), an independent insurance distribution firm delivering tailored insurance solutions to a wide range of personal and commercial Clients, today announced its results for the second quarter ended June 30, 2023.

SECOND QUARTER 2023 HIGHLIGHTS

• Revenue increased 28% year-over-year to $297.2 million
• Organic Revenue Growth was 22% year-over-year
• GAAP net loss of $43.7 million and GAAP diluted loss per share of $0.40
• Adjusted Net Income⁽²⁾ of $32.0 million, or $0.27⁽²⁾ per fully diluted share
• Adjusted EBITDA⁽³⁾ grew 45% to $61.6 million
• Adjusted EBITDA Margin⁽³⁾ of 21%

“The strength of our colleague and client franchise was highlighted by organic growth of 22%, showcasing leading execution on behalf of our clients,” said Trevor Baldwin, Chief Executive Officer of BRP Group. “Additionally, we made progress in de-levering our balance sheet, which further positions us to take advantage of future opportunities. The deep investments we made over the past three years to scale the business are clearly beginning to bear fruit, and we believe they will become more evident in our margin and earnings profile in the second half of the year and beyond.”

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2023, cash and cash equivalents were $105.5 million and the Company had $130.0 million of borrowing capacity under its revolving credit facility.

SIX MONTHS 2023 RESULTS

• Revenue increased 32% year-over-year to $627.6 million
• Organic Revenue Growth of 22% year-over-year
• GAAP net loss of $69.5 million and GAAP diluted loss per share of $0.64
• Adjusted Net Income of $81.2 million, or $0.69 per fully diluted share
• Adjusted EBITDA grew 22% to $140.6 million
• Adjusted EBITDA Margin of 22%

WEBCAST AND CONFERENCE CALL INFORMATION

BRP Group will host a webcast and conference call to discuss second quarter 2023 results today at 5:00 PM ET. A live webcast and a slide presentation of the conference call will be available on BRP Group’s investor relations website at ir.baldwinriskpartners.com. 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 at ir.baldwinriskpartners.com for one year following the call.

ABOUT BRP GROUP, INC.

BRP Group (NASDAQ: BRP) is an independent insurance distribution firm delivering tailored insurance and risk management insights and solutions that give our Clients the peace of mind to pursue their purpose, passion and dreams. We are innovating the industry by taking a holistic and tailored approach to risk management, insurance and employee benefits, and support our Clients, Colleagues, Insurance Company Partners and communities through the deployment of vanguard resources and capital to drive our growth. BRP Group represents over 1.3 million Clients across the United States and internationally. For more information, please visit www.baldwinriskpartners.com.

FOOTNOTES
(1)		Organic Revenue for the three and six months ended June 30, 2022 used to calculate Organic Revenue Growth for the three and six months ended June 30, 2023 was $232.3 million and $475.1 million, respectively, which is adjusted to reflect revenues from Partnerships that have reached the twelve-month owned mark during the three and six months ended June 30, 2023. Organic Revenue and Organic Revenue Growth are non-GAAP measures. Reconciliation of Organic Revenue and Organic Revenue Growth to commissions and fees, the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release.
(2)		Adjusted Net Income and Adjusted Diluted EPS are non-GAAP measures. Reconciliation of Adjusted Net Income to net income (loss) attributable to BRP Group and reconciliation of Adjusted Diluted EPS to diluted earnings (loss) per share, the most directly comparable GAAP financial measures, is set forth in the reconciliation table accompanying this release.
(3)		Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to net income (loss), the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent BRP Group’s expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or BRP Group’s strategies or expectations. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “outlook” or “continue,” or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.

Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, those described under the caption “Risk Factors” in BRP Group’s Annual Report on Form 10-K for the year ended December 31, 2022, and in BRP Group’s other filings with the SEC, which are available free of charge on the SEC's website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to BRP Group or to persons acting on behalf of BRP Group are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and BRP Group does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law.

BRP GROUP, INC.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
		For the Three Months Ended June 30,								For the Six Months Ended June 30,
(in thousands, except share and per share data)			2023				2022				2023				2022
Revenues:
Commissions and fees		$	297,191			$	232,460			$	627,637			$	475,308
Operating expenses:
Commissions, employee compensation and benefits			225,236				172,848				456,190				326,598
Other operating expenses			47,485				40,770				94,089				77,212
Amortization expense			23,159				19,170				46,322				36,732
Change in fair value of contingent consideration			16,393				(26,872	)			41,151				(32,504	)
Depreciation expense			1,449				1,105				2,797				2,093
Total operating expenses			313,722				207,021				640,549				410,131
Operating income (loss)			(16,531	)			25,439				(12,912	)			65,177
Other income (expense):
Interest expense, net			(29,136	)			(14,632	)			(57,020	)			(24,982	)
Other income, net			2,669				5,786				1,158				21,237
Total other expense			(26,467	)			(8,846	)			(55,862	)			(3,745	)
Income (loss) before income taxes			(42,998	)			16,593				(68,774	)			61,432
Income tax expense			665				—				743				—
Net income (loss)			(43,663	)			16,593				(69,517	)			61,432
Less: net income (loss) attributable to noncontrolling interests			(19,766	)			7,951				(31,488	)			29,921
Net income (loss) attributable to BRP Group		$	(23,897	)		$	8,642			$	(38,029	)		$	31,511
Comprehensive income (loss)		$	(43,663	)		$	16,593			$	(69,517	)		$	61,432
Comprehensive income (loss) attributable to noncontrolling interests			(19,766	)			7,951				(31,488	)			29,921
Comprehensive income (loss) attributable to BRP Group			(23,897	)			8,642				(38,029	)			31,511
Basic earnings (loss) per share		$	(0.40	)		$	0.15			$	(0.64	)		$	0.56
Diluted earnings (loss) per share		$	(0.40	)		$	0.14			$	(0.64	)		$	0.53
Weighted-average shares of Class A common stock outstanding - basic			60,093,228				56,270,491				59,406,331				55,996,668
Weighted-average shares of Class A common stock outstanding - diluted			60,093,228				59,858,816				59,406,331				59,354,168

BRP GROUP, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except share and per share data)		June 30, 2023				December 31, 2022
Assets
Current assets:
Cash and cash equivalents		$	105,546			$	118,090
Restricted cash			107,350				112,381
Premiums, commissions and fees receivable, net			593,858				531,992
Prepaid expenses and other current assets			11,654				9,936
Total current assets			818,408				772,399
Property and equipment, net			24,402				25,405
Right-of-use assets			92,921				96,465
Other assets			44,582				45,935
Intangible assets, net			1,062,969				1,099,918
Goodwill			1,421,849				1,422,060
Total assets		$	3,465,131			$	3,462,182
Liabilities, Mezzanine Equity and Stockholders’ Equity
Current liabilities:
Premiums payable to insurance companies		$	534,887			$	471,294
Producer commissions payable			64,548				53,927
Accrued expenses and other current liabilities			110,106				125,743
Related party notes payable			1,525				1,525
Current portion of contingent earnout liabilities			116,228				46,717
Total current liabilities			827,294				699,206
Revolving line of credit			470,000				505,000
Long-term debt, less current portion			807,666				809,862
Contingent earnout liabilities, less current portion			178,084				220,219
Operating lease liabilities, less current portion			84,584				87,692
Other liabilities			241				164
Total liabilities			2,367,869				2,322,143
Commitments and contingencies
Mezzanine equity:
Redeemable noncontrolling interest			495				487
Stockholders’ equity:
Class A common stock, par value $0.01 per share, 300,000,000 shares authorized; 63,696,680 and 61,447,368 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively			637				614
Class B common stock, par value $0.0001 per share, 100,000,000 shares authorized; 53,024,504 and 54,504,918 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively			5				5
Additional paid-in capital			732,673				704,291
Accumulated deficit			(134,793	)			(96,764	)
Stockholder notes receivable			—				(42	)
Total stockholders’ equity attributable to BRP Group			598,522				608,104
Noncontrolling interest			498,245				531,448
Total stockholders’ equity			1,096,767				1,139,552
Total liabilities, mezzanine equity and stockholders’ equity		$	3,465,131			$	3,462,182

BRP GROUP, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
		For the Six Months Ended June 30,
(in thousands)			2023				2022
Cash flows from operating activities:
Net income (loss)		$	(69,517	)		$	61,432
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization			49,119				38,825
Change in fair value of contingent consideration			41,151				(32,504	)
Share-based compensation expense			32,039				17,677
Gain on interest rate caps			(329	)			(21,269	)
Payment of contingent earnout consideration in excess of purchase price accrual			(6,140	)			(47,803	)
Amortization of deferred financing costs			2,333				2,474
Other loss			230				—
Changes in operating assets and liabilities:
Premiums, commissions and fees receivable, net			(61,866	)			(78,365	)
Prepaid expenses and other current assets			(4,751	)			(10,108	)
Right-of-use assets			3,544				(4,116	)
Accounts payable, accrued expenses and other current liabilities			51,647				63,763
Operating lease liabilities			(2,032	)			5,353
Net cash provided by (used in) operating activities			35,428				(4,641	)
Cash flows from investing activities:
Capital expenditures			(8,624	)			(8,565	)
Cash consideration paid for asset acquisitions			(1,611	)			(3,356	)
Investment in business ventures			(359	)			(675	)
Cash consideration paid for business combinations, net of cash received			—				(377,299	)
Net cash used in investing activities			(10,594	)			(389,895	)
Cash flows from financing activities:
Payment of contingent earnout consideration up to amount of purchase price accrual			(7,635	)			(43,184	)
Proceeds from revolving line of credit			60,000				495,000
Payments on revolving line of credit			(95,000	)			(5,000	)
Payments on long-term debt			(4,254	)			(4,254	)
Payments of debt issuance costs			—				(1,565	)
Proceeds from the sale and settlement of interest rate caps			4,940				19,038
Tax distributions to BRP LLC members			(361	)			(9,393	)
Proceeds from repayment of stockholder notes receivable			42				88
Distributions to VIEs			(141	)			—
Net cash provided by (used in) financing activities			(42,409	)			450,730
Net increase (decrease) in cash and cash equivalents and restricted cash			(17,575	)			56,194
Cash and cash equivalents and restricted cash at beginning of period			230,471				227,737
Cash and cash equivalents and restricted cash at end of period		$	212,896			$	283,931

NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA, Adjusted EBITDA Margin, Organic Revenue, Organic Revenue Growth, Adjusted Net Income, Adjusted Diluted Earnings Per Share (“EPS”) and adjusted net cash provided by operating activities (“free cash flow”) are not measures of financial performance under GAAP and should not be considered substitutes for GAAP measures, including commissions and fees (for Organic Revenue and Organic Revenue Growth), net income (loss) (for Adjusted EBITDA and Adjusted EBITDA Margin), net income (loss) attributable to BRP Group (for Adjusted Net Income), diluted earnings (loss) per share (for Adjusted Diluted EPS) or net cash provided by (used in) operating activities (for free cash flow), which we consider to be the most directly comparable GAAP measures. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation or as substitutes for commissions and fees, net income (loss), net income (loss) attributable to BRP Group, diluted earnings (loss) per share, net cash provided by (used in) operating activities or other consolidated income statement data prepared in accordance with GAAP. Other companies in our industry may define or calculate these non-GAAP financial measures differently than we do, and accordingly, these measures may not be comparable to similarly titled measures used by other companies.

We define Adjusted EBITDA as net income (loss) before interest, taxes, depreciation, amortization, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, transaction-related Partnership and integration expenses, severance, and certain non-recurring items, including those related to raising capital. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of income and expenses that do not relate to business performance, and that the presentation of this measure enhances an investor’s understanding of our financial performance.

Adjusted EBITDA Margin is Adjusted EBITDA divided by commissions and fees. Adjusted EBITDA Margin is a key metric used by management and our board of directors to assess our financial performance. We believe that Adjusted EBITDA Margin is an appropriate measure of operating performance because it eliminates the impact of income and expenses that do not relate to business performance, and that the presentation of this measure enhances an investor’s understanding of our financial performance. We believe that Adjusted EBITDA Margin is helpful in measuring profitability of operations on a consolidated level.

Adjusted EBITDA and Adjusted EBITDA Margin have important limitations as analytical tools. For example, Adjusted EBITDA and Adjusted EBITDA Margin:

• do not reflect any cash capital expenditure requirements for the assets being depreciated and amortized that may have to be replaced in the future;
• do not reflect changes in, or cash requirements for, our working capital needs;
• do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations;
• do not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt;
• do not reflect share-based compensation expense and other non-cash charges; and
• exclude certain tax payments that may represent a reduction in cash available to us.

We calculate Organic Revenue based on commissions and fees for the relevant period by excluding investment income and the first twelve months of commissions and fees generated from new Partners. Organic Revenue Growth is the change in Organic Revenue period-to-period, with prior period results adjusted to include commissions and fees that were excluded in the prior period because the relevant Partners had not yet reached the twelve-month owned mark, but which have reached the twelve-month owned mark in the current period. For example, revenues from a Partner acquired on June 1, 2022 are excluded from Organic Revenue for 2022. However, after June 1, 2023, results from June 1, 2022 to December 31, 2022 for such Partners are compared to results from June 1, 2023 to December 31, 2023 for purposes of calculating Organic Revenue Growth in 2023. Organic Revenue Growth is a key metric used by management and our board of directors to assess our financial performance. We believe that Organic Revenue and Organic Revenue Growth are appropriate measures of operating performance as they allow investors to measure, analyze and compare growth in a meaningful and consistent manner.

We define Adjusted Net Income as net income (loss) attributable to BRP Group adjusted for depreciation, amortization, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, transaction-related Partnership and integration expenses, severance, and certain non-recurring costs that, in the opinion of management, significantly affect the period-over-period assessment of operating results, and the related tax effect of those adjustments. We believe that Adjusted Net Income is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate to business performance.

Adjusted Diluted EPS measures our per share earnings excluding certain expenses as discussed above and assuming all shares of Class B common stock were exchanged for Class A common stock. Adjusted Diluted EPS is calculated as Adjusted Net Income divided by adjusted diluted weighted-average shares outstanding. We believe Adjusted Diluted EPS is useful to investors because it enables them to better evaluate per share operating performance across reporting periods.

We calculate free cash flow because we hold fiduciary cash designated for our Insurance Company Partners on behalf of our Clients and incur substantial earnout liabilities in conjunction with our Partnership strategy. Free cash flow is calculated as net cash provided by (used in) operating activities excluding the impact of: (i) the change in premiums, commissions and fees receivable, net; (ii) the change in accounts payable, accrued expenses and other current liabilities; and (iii) the payment of contingent earnout consideration in excess of purchase price accrual. We believe that free cash flow is an important financial measure for use in evaluating financial performance because it measures our ability to generate additional cash from our business operations.

Reconciliation of guidance regarding Adjusted EBITDA Margin, Organic Revenue Growth and Adjusted Diluted EPS to the most directly comparable GAAP measures is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity, and low visibility with respect to commissions and fees, net income (loss), diluted earnings (loss) per share or other consolidated income statement data prepared in accordance with GAAP. The Company is currently unable to predict with a reasonable degree of certainty the type and extent of items that would be expected to impact these GAAP financial measures for these periods. The unavailable information could have a significant impact on the non-GAAP measures.

Adjusted EBITDA and Adjusted EBITDA Margin

The following table reconciles Adjusted EBITDA and Adjusted EBITDA Margin to net income (loss), which we consider to be the most directly comparable GAAP financial measure:

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
(in thousands, except percentages)			2023				2022				2023				2022
Commissions and fees		$	297,191			$	232,460			$	627,637			$	475,308
Net income (loss)		$	(43,663	)		$	16,593			$	(69,517	)		$	61,432
Adjustments to net income (loss):
Interest expense, net			29,136				14,632				57,020				24,982
Amortization expense			23,159				19,170				46,322				36,732
Change in fair value of contingent consideration			16,393				(26,872	)			41,151				(32,504	)
Share-based compensation			18,758				10,113				32,039				17,677
Transaction-related Partnership and integration expenses			8,801				9,208				14,233				17,424
Depreciation expense			1,449				1,105				2,797				2,093
Severance			2,331				653				2,498				875
Income tax provision			665				—				743				—
Gain on interest rate caps			(1,736	)			(5,459	)			(329	)			(21,269	)
Other(1)			6,288				3,341				13,630				7,974
Adjusted EBITDA		$	61,581			$	42,484			$	140,587			$	115,416
Adjusted EBITDA Margin			21	%			18	%			22	%			24	%

__________
(1)		Other addbacks to Adjusted EBITDA include certain expenses that are considered to be non-recurring or non-operational, including certain recruiting costs, professional fees, litigation costs and bonuses. In 2022, these addbacks also included certain expenses related to remediation efforts.

Organic Revenue and Organic Revenue Growth

The following table reconciles Organic Revenue and Organic Revenue Growth to commissions and fees, which we consider to be the most directly comparable GAAP financial measure:

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
(in thousands, except percentages)			2023				2022				2023				2022
Commissions and fees		$	297,191			$	232,460			$	627,637			$	475,308
Partnership commissions and fees(1)			(12,840	)			(84,186	)			(43,711	)			(148,963	)
Investment income			(1,640	)			—				(2,563	)			—
Organic Revenue		$	282,711			$	148,274			$	581,363			$	326,345
Organic Revenue Growth(2)		$	50,440			$	28,630			$	106,244			$	53,811
Organic Revenue Growth %(2)			22	%			24	%			22	%			20	%

__________
(1)		Includes the first twelve months of such commissions and fees generated from newly acquired Partners.
(2)		Organic Revenue for the three and six months ended June 30, 2022 used to calculate Organic Revenue Growth for the three and six months ended June 30, 2023 was $232.3 million and $475.1 million, respectively, which is adjusted to reflect revenues from Partnerships that have reached the twelve-month owned mark during the three and six months ended June 30, 2023.

Adjusted Net Income and Adjusted Diluted EPS

The following table reconciles Adjusted Net Income to net income (loss) attributable to BRP Group and reconciles Adjusted Diluted EPS to diluted earnings (loss) per share, which we consider to be the most directly comparable GAAP financial measures:

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
(in thousands, except per share data)			2023				2022				2023				2022
Net income (loss) attributable to BRP Group		$	(23,897	)		$	8,642			$	(38,029	)		$	31,511
Net income (loss) attributable to noncontrolling interests			(19,766	)			7,951				(31,488	)			29,921
Amortization expense			23,159				19,170				46,322				36,732
Change in fair value of contingent consideration			16,393				(26,872	)			41,151				(32,504	)
Share-based compensation			18,758				10,113				32,039				17,677
Transaction-related Partnership and integration expenses			8,801				9,208				14,233				17,424
(Gain) loss on interest rate caps, net of cash settlements			929				(5,459	)			4,611				(21,269	)
Depreciation			1,449				1,105				2,797				2,093
Severance			2,331				653				2,498				875
Amortization of deferred financing costs			1,094				1,188				2,333				2,474
Other(1)			6,288				3,341				13,630				7,974
Adjusted pre-tax income			35,539				29,040				90,097				92,908
Adjusted income taxes(2)			3,519				2,875				8,920				9,198
Adjusted Net Income		$	32,020			$	26,165			$	81,177			$	83,710
Weighted-average shares of Class A common stock outstanding - diluted			60,093				59,859				59,406				59,354
Dilutive effect of unvested stock awards			4,119				—				3,925				—
Exchange of Class B common stock(3)			53,159				55,864				53,624				56,065
Adjusted diluted weighted-average shares outstanding			117,371				115,723				116,955				115,419
Adjusted Diluted EPS		$	0.27			$	0.23			$	0.69			$	0.73
Diluted earnings (loss) per share		$	(0.40	)		$	0.14			$	(0.64	)		$	0.53
Effect of exchange of Class B common stock and net income (loss) attributable to noncontrolling interests per share			0.03				—				0.05				—
Other adjustments to earnings (loss) per share			0.67				0.11				1.36				0.28
Adjusted income taxes per share			(0.03	)			(0.02	)			(0.08	)			(0.08	)
Adjusted Diluted EPS		$	0.27			$	0.23			$	0.69			$	0.73

__________
(1)		Other addbacks to Adjusted Net Income include certain expenses that are considered to be non-recurring or non-operational, including certain recruiting costs, professional fees, litigation costs and bonuses. In 2022, these addbacks also included certain expenses related to remediation efforts.
(2)		Represents corporate income taxes at an assumed effective tax rate of 9.9% applied to adjusted pre-tax income.
(3)		Assumes the full exchange of Class B common stock for Class A common stock pursuant to the Amended LLC Agreement.

Adjusted Net Cash Provided by Operating Activities (“Free Cash Flow”)

The following table reconciles free cash flow to net cash provided by (used in) operating activities, which we consider to be the most directly comparable GAAP financial measure:

		For the Six Months Ended June 30,
(in thousands)			2023				2022
Net cash provided by (used in) operating activities		$	35,428			$	(4,641	)
Adjustments to net cash provided by (used in) operating activities:
Change in premiums, commissions and fees receivable, net			61,866				78,365
Change in accounts payable, accrued expenses and other current liabilities			(51,647	)			(63,763	)
Payment of contingent earnout consideration in excess of purchase price accrual			6,140				47,803
Free cash flow		$	51,787			$	57,764

COMMONLY USED DEFINED TERMS

The following terms have the following meanings throughout this press release unless the context indicates or requires otherwise:

Amended LLC Agreement		Third Amended and Restated Limited Liability Company Agreement of Baldwin Risk Partners, LLC, as amended
Clients		Our insureds
Colleagues		Our employees
GAAP		Accounting principles generally accepted in the United States of America
Insurance Company Partners		Insurance companies with which we have a contractual relationship
Partners		Companies that we have acquired, or in the case of asset acquisitions, the producers
Partnerships		Strategic acquisitions made by the Company
SEC		U.S. Securities and Exchange Commission

 

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INVESTOR RELATIONS

Bonnie Bishop, Executive Director

Baldwin Risk Partners

(813) 259-8032 | IR@baldwinriskpartners.com

PRESS

Anna R. Rozenich, Senior Director - Enterprise Communications

Baldwin Risk Partners

(630) 561-5907 | anna.rozenich@baldwinriskpartners.com

Source: BRP Group, Inc.

FAQ

What is the revenue growth rate for BRP Group in the second quarter of 2023?

BRP Group's revenue grew by 28% year-over-year in the second quarter of 2023.

What was the organic revenue growth rate for BRP Group in the second quarter of 2023?

BRP Group achieved an organic revenue growth rate of 22% year-over-year in the second quarter of 2023.

What was the GAAP net loss for BRP Group in the second quarter of 2023?

BRP Group had a GAAP net loss of $43.7 million in the second quarter of 2023.

What was the adjusted net income for BRP Group in the second quarter of 2023?

BRP Group reported an adjusted net income of $32.0 million in the second quarter of 2023.

What was the adjusted EBITDA for BRP Group in the second quarter of 2023?

BRP Group's adjusted EBITDA grew by 45% to $61.6 million in the second quarter of 2023.

What is the liquidity position of BRP Group as of June 30, 2023?

As of June 30, 2023, BRP Group had cash and cash equivalents of $105.5 million and $130.0 million of borrowing capacity under its revolving credit facility.

What were the six months 2023 results for BRP Group?

In the first six months of 2023, BRP Group's revenue increased by 32% year-over-year to $627.6 million. The company achieved an organic revenue growth rate of 22%. The GAAP net loss was $69.5 million, while the adjusted net income was $81.2 million.

What was the adjusted EBITDA margin for BRP Group in the second quarter of 2023?

BRP Group had an adjusted EBITDA margin of 21% in the second quarter of 2023.