Brown & Brown Inc., with headquarters in Daytona Beach and Tampa, Fla. has announced record earnings for 2005, the 13th consecutive year for which the company has recorded new highs in both revenues and net income. Net income for 2005 rose to $150,551,000, or $1.08 per share, an increase of 16.8 percent over the $128,843,000, or $0.93 per share, earned in 2004. Total revenues for the year rose to $785,807,000, up 21.5 percent compared with $646,934,000 achieved in 2004.
During the fourth quarter of 2005 net income increased 18.0 percent, to $35,717,000, or $0.25 per share, compared with 2004 fourth quarter net income of $30,256,000, or $0.22 per share. Total revenue for the fourth quarter of 2005 was $196,857,000, a 20.7 percent increase over the fourth quarter 2004 revenues of $163,046,000.
“We are quite pleased to again announce outstanding earnings growth of at least 15 percent per share, the thirteenth consecutive year we have achieved this remarkable goal,” J. Hyatt Brown, chairman and CEO said. “Even though this past year’s hurricane season had a very dramatic impact on our people and clients, the strength of the Brown & Brown culture and our people allowed us to overcome these challenges. This single-minded effort has brought us ever closer to our active intermediate goal of achieving B-40, that is, $1 billion in revenue and a 40 percent operating margin (pre-tax income with interest, amortization and non-cash stock grant compensation expense added back). We feel quite positive about our ability to continue growing in the future.”
“2005 turned out to be our second best year ever in terms of the annualized revenues from acquisitions completed during the year,” Jim W. Henderson, president and COO said. “This success has carried into 2006 with the operations of Axiom Intermediaries, LLC officially joining us in early January. As we have said many times, we are very excited about the exceptional caliber of the organizations seeking to join Brown & Brown.”
Internally, Linda Downs regional executive vice president has been elevated to the position of executive vice president for Leadership Development. Linda’s promotion highlights the increased emphasis Brown & Brown is placing on the recruitment, training and development of future leaders.