BRP(BRP) - 2024 Q3 - Quarterly Report

Financial Position - Total assets increased to $3,539,040 thousand as of September 30, 2024, compared to$3,501,937 thousand at December 31, 2023, reflecting a growth of approximately 1.06%[10] - Current assets rose to $1,014,281 thousand, up from$925,905 thousand, marking an increase of about 9.5%[10] - Total liabilities increased to $2,502,431 thousand from$2,483,055 thousand, representing a rise of approximately 0.78%[10] - Total stockholders' equity attributable to Baldwin increased to $595,350 thousand from$560,412 thousand, a growth of about 6.2%[10] - The company reported a current portion of contingent earnout liabilities of $201,281 thousand, down from$215,157 thousand, indicating a decrease of approximately 6.4%[10] - The company’s total current liabilities were $1,031,554 thousand, slightly down from$1,033,440 thousand, showing a decrease of about 0.2%[10] - The accumulated deficit as of September 30, 2024, was $(191,261) thousand, compared to$(182,884) thousand at June 30, 2024[13] - The carrying amount of long-term debt was $1,437.9 million as of September 30, 2024, with an estimated fair value of$1,466.4 million[96] Revenue and Income - Total revenues for Q3 2024 reached $338,938 thousand, a 10.6$306,270 thousand in Q3 2023[12] - Commissions and fees for the nine months ended September 30, 2024, were $1,050,409 thousand, up 13.0$929,306 thousand in the same period of 2023[12] - Operating income for Q3 2024 was $15,406 thousand, compared to an operating income of$86 thousand in Q3 2023[12] - Net loss attributable to Baldwin for Q3 2024 was $8,377 thousand, an improvement from a net loss of$17,629 thousand in Q3 2023[12] - Basic and diluted loss per share for Q3 2024 was $(0.13), compared to$(0.29) in Q3 2023[12] - Total revenues for the three months ended September 30, 2024, were $338.9 million, an increase from$306.3 million for the same period in 2023, representing an increase of 10.5%[42] - Commission revenue for the nine months ended September 30, 2024, was $873.1 million, up from$737.8 million in the same period of 2023, reflecting an increase of 18.4%[42] - For the nine months ended September 30, 2024, total revenues were $1,059.145 million, with net income of$(6.242) million[105] Cash Flow and Liquidity - Cash and cash equivalents grew to $181,759 thousand, compared to$116,209 thousand, indicating a significant increase of about 56.4%[10] - Cash provided by operating activities for the nine months ended September 30, 2024, was $85,708,000, up from$22,799,000 in 2023, reflecting enhanced operational efficiency[18] - Net cash provided by investing activities was $25,609,000 for the nine months ended September 30, 2024, compared to a net cash used of$16,948,000 in 2023, indicating a positive shift in investment strategy[18] - The company had cash and cash equivalents of $344,716,000 at the end of the period, up from$194,394,000 at the end of the same period in 2023, demonstrating strong liquidity[20] - Cash paid for interest during the period was $73,417,000, a decrease from$77,455,000 in 2023, suggesting improved debt management[20] Debt and Financing - Long-term debt, less current portion, rose to $1,399,010 thousand from$968,183 thousand, reflecting an increase of about 44.5%[10] - The company has a revolving credit facility with commitments totaling $600 million, maturing on May 24, 2029[7] - The aggregate principal amount of the JPM Credit Agreement was$1.62 billion as of December 31, 2023, consisting of a term loan facility of $1.02 billion and a revolving credit facility of$600 million[52] - On May 24, 2024, the Company refinanced its Term Loan B and Revolving Facility with $600 million in senior secured notes and a new$840 million term loan facility[53] - The outstanding borrowings on the 2024 Term Loan were $837.9 million with an applicable interest rate of 8.10$2.1 million, with the balance payable in full on the maturity date[63] - The Company recorded a loss of $15.1 million related to the extinguishment and modification of debt for the nine months ended September 30, 2024[55] Operating Expenses - Total operating expenses for Q3 2024 were$323,532 thousand, a slight increase from $306,184 thousand in Q3 2023[12] - The company reported a depreciation and amortization expense of$80,953,000 for the nine months ended September 30, 2024, compared to $73,755,000 in 2023, showing an increase in asset utilization[18] - The Company incurred$32.0 million in debt issuance costs, with $18.0 million capitalized as deferred financing costs and$14.0 million expensed during the nine months ended September 30, 2024[55] Shareholder Information - The balance of Class A common stock shares increased to 67,536,347 as of September 30, 2024, from 66,544,590 shares at June 30, 2024[13] - The total number of shares authorized for issuance under the Omnibus Plan and the Inducement Plan was 10,793,035 and 3,000,000, respectively, at September 30, 2024[78] - Non-vested awards outstanding at September 30, 2024, increased to 3,720,279 shares from 3,521,590 shares at December 31, 2023, reflecting a growth of approximately 5.7%[80] - Share-based compensation expense for the three months ended September 30, 2024, was $17.9 million, up from$14.6 million in the same period of 2023, representing a year-over-year increase of 22.4%[81] - The total fair value of shares that vested and settled under the Plans was $36.7 million for the nine months ended September 30, 2024, compared to$29.6 million for the same period in 2023, marking a 24% increase[80] Legal and Compliance - The Company is involved in various legal claims, but management believes the ultimate resolution will not materially affect its financial position[98] - Baldwin Holdings was in compliance with all covenants under the 2024 Credit Agreement at September 30, 2024[69] Business Operations - The Insurance Advisory Solutions Operating Group generated revenues of $549.810 million for the nine months ended September 30, 2024, with net income of$55.619 million[105] - The Underwriting, Capacity & Technology Solutions Operating Group reported revenues of $356.176 million and net income of$70.470 million for the same period[105] - The Mainstreet Insurance Solutions Operating Group achieved revenues of $209.422 million with net income of$32.361 million for the nine months ended September 30, 2024[105] - The Company generated commissions and fees from various arrangements, including service fee and consulting arrangements in its Operating Groups[102]