Ryan Specialty (RYAN) - 2024 Q3 - Quarterly Results

Revenue Growth - Total revenue for Q3 2024 increased by 20.5% year-over-year to $604.7 million, up from$ 501.9 million in the prior-year period[1] - Total revenue for Q3 2024 reached $604,694,000, a 20.4% increase from$ 501,938,000 in Q3 2023[34] - Total revenue for the three months ended September 30, 2024, was $604,694,000, a 20.4% increase from$ 501,938,000 in the same period of 2023[48] Organic Revenue Growth - Organic revenue growth rate was 11.8% for the quarter, compared to 15.0% in the prior-year period[3] - The full year 2024 organic revenue growth rate is projected to be between 13.0% and 14.0%[14] - Organic revenue growth (Non-GAAP) for the nine months ended September 30, 2024, was 13.3%, compared to 15.0% in the same period of 2023[42] Net Income and Earnings - Net income rose 82.4% year-over-year to $28.6 million, compared to$ 15.7 million in the prior-year period, with diluted earnings per share at $0.09[5] - Net income for the three months ended September 30, 2024, was$ 28,643,000, compared to $15,703,000 for the same period in 2023, representing an increase of 82.5%[48] - Adjusted net income increased 31.2% to$ 113.6 million, with an adjusted net income margin of 18.8%, compared to 17.3% in the prior-year period[7] - Adjusted net income for Q3 2024 was $113,633,000, a 31.1% increase from$ 86,631,000 in Q3 2023[35] Operating Expenses - Total operating expenses for Q3 2024 were $523.2 million, a 21.1% increase compared to the prior-year period[4] - Compensation and benefits expense for the three months ended September 30, 2024, was$ 393,249,000, compared to $329,212,000 in the same period of 2023, representing an increase of 19.5%[43] - General and administrative expense ratio for the three months ended September 30, 2024, was 14.7%, compared to 13.8% in the same period of 2023[45] Commissions and Fees - Net commissions and policy fees for Q3 2024 reached$ 555,282,000, a 17.6% increase from $470,085,000 in Q3 2023[11] - Net commissions and fees increased to$ 588,129,000, up 20.6% from 487,345,000 year-over-year[34] - Total net commissions and fees for the nine months ended September 30, 2024, were $1,806,264,000, representing a 19.8% increase from$ 1,507,878,000 in the same period of 2023[12] Financial Position - As of September 30, 2024, the company had cash and cash equivalents of $235.2 million and outstanding debt of$ 2.7 billion[12] - Total assets as of September 30, 2024, were $8,478,503,000, up from$ 7,247,209,000 at the end of 2023[37] - Total liabilities increased to $7,376,971,000 from$ 6,267,565,000 at the end of 2023[37] Shareholder Returns - Capital return to shareholders and LLC unit holders was $19.0 million in regular dividends and distributions[1] - The company declared a quarterly dividend of$ 0.11 per share, payable on November 26, 2024[13] Acquisitions and Investments - The company executed five acquisitions through the beginning of October 2024, enhancing current offerings and expanding the total addressable market[1] - Business combinations for the nine months ended September 30, 2024, resulted in cash outflows of $1,256,732,000, compared to$ 366,149,000 in the same period of 2023, indicating a significant increase in investment activity[40] Guidance and Outlook - Adjusted EBITDAC margin guidance for full year 2024 is between 32.0% and 32.5%[14] - The company is unable to provide a comparable outlook for total revenue growth rate or net income margin due to the difficulty in forecasting certain reconciling items[14] - The company will host a conference call to discuss these results on October 30, 2024, at 5:00 PM ET[15]