Ryan Specialty (RYAN) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenue for the three months ended September 30, 2024, was $604.694 million, an increase of 20.4$501.938 million for the same period in 2023[14]. - Net commissions and fees for the nine months ended September 30, 2024, reached $1.806 billion, up 19.8$1.507 billion in the prior year[14]. - Operating income for the three months ended September 30, 2024, was $81.477 million, representing a 16.5$69.817 million in the same quarter of 2023[14]. - Net income attributable to Ryan Specialty Holdings, Inc. for the three months ended September 30, 2024, was $17.589 million, compared to a net loss of$5.047 million in the same period last year[15]. - Basic net income per share for the three months ended September 30, 2024, was $0.15, compared to a loss of$0.04 in the same quarter of 2023[15]. - Net income for the three months ended September 30, 2024, was $28,643 thousand, compared to$15,703 thousand for the same period in 2023, representing an increase of 82.2%[16]. - Net income attributable to Ryan Specialty Holdings, Inc. for the nine months ended September 30, 2024, was $80,911 thousand, up from$38,191 thousand in 2023, reflecting a growth of 111.3%[16]. - Total revenue for the three months ended September 30, 2024, was $630.3 million, an increase of 11.4$565.7 million for the same period in 2023[40]. - Net income for the three months ended September 30, 2024, was $8.3 million, a decrease of 67.0$25.2 million for the same period in 2023[40]. Expenses and Liabilities - Total operating expenses for the nine months ended September 30, 2024, were $1.534 billion, an increase of 19.6$1.282 billion for the same period in 2023[14]. - Interest expense for the three months ended September 30, 2024, was $49.388 million, compared to$31.491 million in the same period of 2023[14]. - Compensation and benefits expenses increased by 19.5% to $393.2 million for the three months ended September 30, 2024, from$329.2 million in the prior year[138]. - General and administrative expenses rose by 28.0% to $88.7 million for the three months ended September 30, 2024, compared to$69.3 million in the same period of 2023[138]. - Amortization expense increased by 32.5% to $39.2 million for the three months ended September 30, 2024, up from$29.6 million in the prior year[138]. - Interest expense, net increased by $20.1 million, or 22.3$89.8 million to $109.9 million for the nine months ended September 30, 2024, primarily due to increased debt from acquisitions[165]. - The total debt as of September 30, 2024, was$2.68 billion, compared to $1.98 billion as of December 31, 2023, reflecting an increase of 35$8,478,503 thousand as of September 30, 2024, from $7,247,209 thousand at December 31, 2023, marking a rise of 17.0$1,356,113 thousand at the end of September 30, 2024, down from $1,603,000 thousand at the end of 2023, a decline of 15.4$632,833 thousand as of September 30, 2024, from $559,754 thousand at December 31, 2023, an increase of 13.0$1,101,532,000[21]. - As of September 30, 2023, total stockholders' equity was $941,241,000, an increase from$817,812,000 at December 31, 2022, representing a growth of approximately 15.1%[22]. Acquisitions and Growth - The company completed the acquisition of US Assure Insurance Services for cash consideration of $1,079.8 million and contingent consideration of$103.8 million on August 30, 2024[33]. - The total assets acquired during the nine months ended September 30, 2024, amounted to $1.81 billion, with net assets acquired totaling$1.48 billion[34]. - The company has made several acquisitions in 2024, including Castel Underwriting Agencies Limited and US Assure Insurance Services, enhancing its distribution reach and product capabilities[123]. - The restructuring program, ACCELERATE 2025, is expected to incur total costs of approximately $110.0 million and generate annual savings of about$60.0 million starting in 2025[43]. - The company recognized $24.5 million and$33.8 million of revenue related to acquisitions for the three and nine months ended September 30, 2024, respectively[36]. Cash Flow and Dividends - The company reported cash flows from operating activities of $255,228 thousand for the nine months ended September 30, 2024, compared to$250,335 thousand in 2023, a slight increase of 2.8%[18]. - Cash flows used for investing activities during the nine months ended September 30, 2024, were $1,286.4 million, an increase of$904.5 million compared to $381.9 million in the same period of 2023[195]. - During the nine months ended September 30, 2024, the Company paid$66.5 million in dividends on Class A common stock, including $27.1 million for a special Q1 2024 dividend[60]. - The Company declared a one-time special cash dividend of$0.23 per share and initiated a regular quarterly dividend of $0.11 per share on Class A common stock[186]. Risk Factors - The company faces various risks including regulatory changes, operational challenges, and potential legal proceedings that could impact financial performance[8]. - The company is evaluating the impact of recently issued accounting standards on its consolidated financial statements and disclosures[29]. - Approximately 4$455.1 million as of September 30, 2024, reflecting increases of $95.6 million and$63.2 million for the nine months ended September 30, 2024, and 2023, respectively[112]. - The Company incurred expenses of $2.7 million related to services provided to Geneva Re for the three months ended September 30, 2024, compared to$2.2 million for the same period in 2023[104]. - The Company recognized a non-cash deferred income tax expense of $20.7 million for the three and nine months ended September 30, 2023, due to common control reorganization[110].