BRP Group, Inc. Announces Fourth Quarter and Full Year 2023 Results

Business Wire
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In this article:

- Fourth Quarter 2023 Total Revenues Grew 16% Year-Over-Year to $284.6 Million -

- Full Year 2023 Total Revenues Grew 24% Year-Over-Year to $1.2 Billion -

- Fourth Quarter 2023 Organic Revenue Growth(1) of 15% -

- Full Year 2023 Organic Revenue Growth of 19% -

TAMPA, Fla., February 28, 2024--(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 fourth quarter and full year ended December 31, 2023.

FOURTH QUARTER 2023 HIGHLIGHTS

  • Total revenues increased 16% year-over-year to $284.6 million

  • Organic Revenue Growth of 15% year-over-year

  • GAAP net loss of $62.5 million and GAAP diluted loss per share of $0.56

  • Adjusted Net Income(2) of $16.2 million, or $0.14(2) per fully diluted share

  • Adjusted EBITDA(3) grew 16% year-over-year to $45.6 million

  • Adjusted EBITDA Margin(3) of 16%

"We capped 2023 with another solid quarter of double-digit organic growth, leading us to generate full year organic revenue growth of nearly 20% and further illustrating the power and underlying health of our platform," said Trevor Baldwin, Chief Executive Officer of BRP Group. "Our team continues to develop and deliver innovative solutions for our Clients, and we made significant progress in the quarter in terms of our expense rationalization efforts. As a result, we entered 2024 well-positioned to deliver another year of profitable double-digit organic growth, while meaningfully accelerating expanding margins and free cash flow in order to further strengthen our balance sheet. I’m proud of our entire team’s tireless efforts to execute for our Clients and setting us up to generate additional long-term value for our shareholders."

LIQUIDITY AND CAPITAL RESOURCES

As of December 31, 2023, cash and cash equivalents were $116.2 million and the Company had $259.0 million of borrowing capacity under its revolving credit facility.

FULL YEAR 2023 HIGHLIGHTS

  • Total revenues increased 24% year-over-year to $1.2 billion

  • Organic Revenue Growth of 19% year-over-year

  • GAAP net loss of $164.0 million and GAAP diluted loss per share of $1.50

  • Adjusted Net Income of $131.1 million, or $1.12 per fully diluted share

  • Adjusted EBITDA grew 27% year-over-year to $250.2 million

  • Adjusted EBITDA Margin of 21%

WEBCAST AND CONFERENCE CALL INFORMATION

BRP Group will host a webcast and conference call to discuss fourth 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, Inc. (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, technology and capital to drive our organic and inorganic growth. BRP Group represents over two million Clients across the United States and internationally. For more information, please visit www.baldwinriskpartners.com.

FOOTNOTES

(1)

Organic Revenue for the three and twelve months ended December 31, 2022 used to calculate Organic Revenue Growth for the three and twelve months ended December 31, 2023 was $245.8 million and $979.9 million, respectively, which is adjusted to reflect revenues from Partnerships that have reached the twelve-month owned mark during the three and twelve months ended December 31, 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 loss attributable to BRP Group and reconciliation of Adjusted Diluted EPS to diluted loss per share, the most directly comparable GAAP financial measures, are 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 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, 2023 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, including those risks and other factors relevant to the business, financial condition and results of operations of BRP Group. 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.

Consolidated Statements of Comprehensive Loss

For the Three Months

Ended December 31,

For the Years

Ended December 31,

(in thousands, except share and per share data)

2023

2022

2023

2022

Revenues:

Commissions and fees

$

282,522

$

246,044

$

1,211,828

$

980,720

Investment income

2,126

—

6,727

—

Total revenues

284,648

246,044

1,218,555

980,720

Operating expenses:

Commissions, employee compensation and benefits

234,695

196,927

911,354

719,445

Other operating expenses

49,013

49,284

190,267

173,708

Amortization expense

23,199

21,826

92,704

81,738

Change in fair value of contingent consideration

6,018

43,116

61,083

32,307

Depreciation expense

1,448

1,311

5,698

4,620

Total operating expenses

314,373

312,464

1,261,106

1,011,818

Operating loss

(29,725

)

(66,420

)

(42,551

)

(31,098

)

Other income (expense):

Interest expense, net

(31,865

)

(25,324

)

(119,465

)

(71,072

)

Other income (expense), net

(525

)

986

(718

)

26,137

Total other expense

(32,390

)

(24,338

)

(120,183

)

(44,935

)

Loss before income taxes

(62,115

)

(90,758

)

(162,734

)

(76,033

)

Income tax expense

381

715

1,285

715

Net loss

(62,496

)

(91,473

)

(164,019

)

(76,748

)

Less: net loss attributable to noncontrolling interests

(28,013

)

(42,983

)

(73,878

)

(34,976

)

Net loss attributable to BRP Group

$

(34,483

)

$

(48,490

)

$

(90,141

)

$

(41,772

)

Comprehensive loss

$

(62,496

)

$

(91,473

)

$

(164,019

)

$

(76,748

)

Comprehensive loss attributable to noncontrolling interests

(28,013

)

(42,983

)

(73,878

)

(34,976

)

Comprehensive loss attributable to BRP Group

(34,483

)

(48,490

)

(90,141

)

(41,772

)

Basic and diluted loss per share

$

(0.56

)

$

(0.84

)

$

(1.50

)

$

(0.74

)

Basic and diluted weighted-average shares of Class A common stock outstanding

61,153,612

57,997,896

60,134,776

56,825,348

BRP GROUP, INC.

Consolidated Balance Sheets

December 31,

(in thousands, except share and per share data)

2023

2022

Assets

Current assets:

Cash and cash equivalents

$

116,209

$

118,090

Restricted cash

104,824

112,381

Premiums, commissions and fees receivable, net

627,791

531,992

Prepaid expenses and other current assets

12,730

9,936

Assets held for sale

64,351

—

Total current assets

925,905

772,399

Property and equipment, net

22,713

25,405

Right-of-use assets

85,473

96,465

Other assets

38,134

45,935

Intangible assets, net

1,017,343

1,099,918

Goodwill

1,412,369

1,422,060

Total assets

$

3,501,937

$

3,462,182

Liabilities, Mezzanine Equity and Stockholders’ Equity

Current liabilities:

Premiums payable to insurance companies

$

555,569

$

471,294

Producer commissions payable

64,304

53,927

Accrued expenses and other current liabilities

152,954

125,743

Related party notes payable

1,525

1,525

Current portion of contingent earnout liabilities

215,157

46,717

Liabilities held for sale

43,931

—

Total current liabilities

1,033,440

699,206

Revolving line of credit

341,000

505,000

Long-term debt, less current portion

968,183

809,862

Contingent earnout liabilities, less current portion

61,310

220,219

Operating lease liabilities, less current portion

78,999

87,692

Other liabilities

123

164

Total liabilities

2,483,055

2,322,143

Commitments and contingencies

Mezzanine equity:

Redeemable noncontrolling interest

394

487

Stockholders’ equity:

Class A common stock, par value $0.01 per share, 300,000,000 shares authorized; 64,133,950 and 61,447,368 shares issued and outstanding at December 31, 2023 and 2022, respectively

641

614

Class B common stock, par value $0.0001 per share, 100,000,000 shares authorized; 52,422,494 and 54,504,918 shares issued and outstanding at December 31, 2023 and 2022, respectively

5

5

Additional paid-in capital

746,671

704,291

Accumulated deficit

(186,905

)

(96,764

)

Stockholder notes receivable

—

(42

)

Total stockholders’ equity attributable to BRP Group

560,412

608,104

Noncontrolling interest

458,076

531,448

Total stockholders’ equity

1,018,488

1,139,552

Total liabilities, mezzanine equity and stockholders’ equity

$

3,501,937

$

3,462,182

BRP GROUP, INC.

Consolidated Statements of Cash Flows

For the Years Ended December 31,

(in thousands)

2023

2022

Cash flows from operating activities:

Net loss

$

(164,019

)

$

(76,748

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

98,402

86,358

Change in fair value of contingent consideration

61,083

32,307

Share-based compensation expense

60,008

47,389

Payment of contingent earnout consideration in excess of purchase price accrual

(24,326

)

(49,926

)

Amortization of deferred financing costs

5,129

5,120

(Gain) loss on interest rate caps

1,670

(26,220

)

Other loss

361

135

Changes in operating assets and liabilities, net of effect of acquisitions:

Premiums, commissions and fees receivable, net

(132,269

)

(183,006

)

Prepaid expenses and other current assets

(6,849

)

(10,383

)

Right-of-use assets

17,963

(13,492

)

Accounts payable, accrued expenses and other current liabilities

140,675

173,362

Operating lease liabilities

(13,184

)

16,531

Other liabilities

—

(3,889

)

Net cash provided by (used in) operating activities

44,644

(2,462

)

Cash flows from investing activities:

Capital expenditures

(21,376

)

(21,979

)

Proceeds from the sale of assets

3,259

—

Cash consideration paid for asset acquisitions

(2,118

)

(3,356

)

Investments in and loans to business ventures

(1,687

)

(1,103

)

Cash consideration paid for business combinations, net of cash received

—

(387,919

)

Net cash used in investing activities

(21,922

)

(414,357

)

Cash flows from financing activities:

Payment of contingent earnout consideration up to amount of purchase price accrual

...

(27,949

)

(48,309

)

Proceeds from revolving line of credit

111,000

512,000

Payments on revolving line of credit

(275,000

)

(42,000

)

Proceeds from long-term debt

170,000

—

Payments on long-term debt

(9,376

)

(8,509

)

Payments of debt issuance costs

(4,998

)

(1,821

)

Proceeds from the sale and settlement of interest rate caps

10,918

21,246

Purchase of interest rate caps

—

(3,838

)

Tax distributions to BRP's LLC Members

(482

)

(9,393

)

Proceeds from repayment of stockholder notes receivable

42

177

Distributions to variable interest entities

(385

)

—

Net cash provided by (used in) financing activities

(26,230

)

419,553

Net increase (decrease) in cash and cash equivalents and restricted cash

(3,508

)

2,734

Cash and cash equivalents and restricted cash at beginning of year

230,471

227,737

Cash and cash equivalents and restricted cash at end of year

$

226,963

$

230,471

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 total revenues. 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 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 from Organic Revenue 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 income and 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 on a one-for-one basis. 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, Organic Revenue Growth, Adjusted Diluted EPS and free cash flow 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 loss, which we consider to be the most directly comparable GAAP financial measure:

For the Three Months

Ended December 31,

For the Years

Ended December 31,

(in thousands, except percentages)

2023

2022

2023

2022

Revenues

$

284,648

$

246,044

$

1,218,555

$

980,720

Net loss

$

(62,496

)

$

(91,473

)

$

(164,019

)

$

(76,748

)

Adjustments to net loss:

Interest expense, net

31,865

25,324

119,465

71,072

Amortization expense

23,199

21,826

92,704

81,738

Change in fair value of contingent consideration

6,018

43,116

61,083

32,307

Share-based compensation

9,585

21,324

56,222

47,389

Transaction-related Partnership and integration expenses

10,741

5,036

28,748

34,588

Severance

15,141

120

18,514

1,255

Depreciation expense

1,448

1,311

5,698

4,620

(Gain) loss on interest rate caps

1,181

(800

)

1,670

(26,220

)

Income tax provision

381

715

1,285

715

Other(1)

8,545

12,691

28,834

25,774

Adjusted EBITDA

$

45,608

$

39,190

$

250,204

$

196,490

Adjusted EBITDA Margin

16

%

16

%

21

%

20

%

__________

(1)

Other addbacks to Adjusted EBITDA include certain income and 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 December 31,

For the Years

Ended December 31,

(in thousands, except percentages)

2023

2022

2023

2022

Commissions and fees

$

282,522

$

246,044

$

1,211,828

$

980,720

Partnership commissions and fees(1)

—

(46,059

)

(44,696

)

(280,660

)

Organic Revenue

$

282,522

$

199,985

$

1,167,132

$

700,060

Organic Revenue Growth(2)

$

36,742

$

40,785

$

187,213

$

132,610

Organic Revenue Growth %(2)

15

%

26

%

19

%

23

%

__________

(1)

Includes the first twelve months of such commissions and fees generated from newly acquired Partners.

(2)

Organic Revenue for the three and twelve months ended December 31, 2022 used to calculate Organic Revenue Growth for the three and twelve months ended December 31, 2023 was $245.8 million and $979.9 million, respectively, which is adjusted to reflect revenues from Partnerships that reached the twelve-month owned mark during the three and twelve months ended December 31, 2023.

Adjusted Net Income and Adjusted Diluted EPS

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

For the Three Months

Ended December 31,

For the Years

Ended December 31,

(in thousands, except per share data)

2023

2022

2023

2022

Net loss attributable to BRP Group

$

(34,483

)

$

(48,490

)

$

(90,141

)

$

(41,772

)

Net loss attributable to noncontrolling interests

(28,013

)

(42,983

)

(73,878

)

(34,976

)

Amortization expense

23,199

21,826

92,704

81,738

Change in fair value of contingent consideration

6,018

43,116

61,083

32,307

Share-based compensation

9,585

21,324

56,222

47,389

Transaction-related Partnership and integration expenses

10,741

5,036

28,748

34,588

Severance

15,141

120

18,514

1,255

(Gain) loss on interest rate caps, net of cash settlements

4,206

859

12,588

(24,012

)

Depreciation

1,448

1,311

5,698

4,620

Amortization of deferred financing costs

1,552

1,226

5,129

5,120

Other(1)

8,545

12,691

28,834

25,774

Adjusted pre-tax income

17,939

16,036

145,501

132,031

Adjusted income taxes(2)

1,776

1,587

14,405

13,071

Adjusted Net Income

$

16,163

$

14,449

$

131,096

$

118,960

Weighted-average shares of Class A common stock outstanding - diluted

61,154

57,998

60,135

56,825

Dilutive effect of unvested stock awards

3,709

3,706

3,874

3,526

Exchange of Class B common stock(3)

52,434

54,579

53,132

55,450

Adjusted diluted weighted-average shares outstanding

117,297

116,283

117,141

115,801

Adjusted Diluted EPS

$

0.14

$

0.12

$

1.12

$

1.03

Diluted loss per share

$

(0.56

)

$

(0.84

)

$

(1.50

)

$

(0.74

)

Effect of exchange of Class B common stock and net loss attributable to noncontrolling interests per share

0.03

0.05

0.10

0.08

Other adjustments to loss per share

0.69

0.92

2.64

1.80

Adjusted income taxes per share

(0.02

)

(0.01

)

(0.12

)

(0.11

)

Adjusted Diluted EPS

$

0.14

$

0.12

$

1.12

$

1.03

___________

(1)

Other addbacks to Adjusted Net Income include certain income and 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 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 Years

Ended December 31,

(in thousands)

2023

2022

Net cash provided by (used in) operating activities

$

44,644

$

(2,462

)

Adjustments to net cash provided by (used in) operating activities:

Change in premiums, commissions and fees receivable, net

132,269

183,006

Change in accounts payable, accrued expenses and other current liabilities

(140,675

)

(173,362

)

Payment of contingent earnout consideration in excess of purchase price accrual

24,326

49,926

Free cash flow

$

60,564

$

57,108

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20240228050048/en/

Contacts

INVESTOR RELATIONS

Bonnie Bishop, Executive Director, Investor Relations
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

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