BRP Group, Inc. (BRP) reported second quarter 2022 results yesterday evening. BRP’s 2Q22 adjusted Earnings Per Share (EPS) was $0.23 and revenue was $232.5 million, an increase of 94%.
BRP Earnings Report Highlights
Here are five things you should know about this earnings call:
- BRP posted 2Q2022 organic growth of 24%, with double-digit organic growth in all four segments. The MainStreet segment reported organic growth of 33%. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased 112% to $42.5 million, while adjusted EBITDA margin was 18%, above the 17% in 2Q2021.
- The MGA of the Future segment’s organic revenue grew 70% year-over-year (YoY), which was the best quarter in BRP’s history as a public company. In May, BRP started managing a portion of the $200+ million premium builder-sourced admitted homeowners book from QBE Insurance Company (QBE), a new agreement announced in March. BRP noted that its proprietary homeowners’ products boosted its 2Q2022 organic growth in the MGA of the Future segment and are expected to contribute to organic growth in 2022 and 2023.
- In April, BRP completed the acquisition of Westwood Insurance Agency (Westwood), a personal lines focused insurance distribution platform embedded with 14 of the top 20 homebuilders in the U.S., its largest partnership to date. BRP is “confident that continued channel partner expansion, capture rate improvement, increasing retention and property rate tailwinds will continue to overcome any home sales headwinds and drive overall strong growth for Westwood.
- Mergers & Acquisitions (M&A): CEO Trevor L. Baldwin noted: “our outlook for M&A for the balance of the year hasn’t changed from the last call. We continue to expect to be at the low-end of that $100 million to $150 million range for acquired revenue for the year. We’re at $96 million announced M&A as of this call so far this year.” He also commented that the “flow of M&A opportunities that we’re seeing remains relatively high.”
- Forward guidance: BRP is “slightly” increasing projections for organic growth to the high teens for the full year 2022. The firm believes that its investments in talent and technology, concentrated in its MainStreet and MGA of the Future businesses, will help boost growth in 2022 and beyond. BRP continues to see an additional increase of 50-100 basis points in adjusted EBITDA margin in 2022, above 2021’s 20% and in-line with prior guidance.
To learn more visit – BRP Announces Second Quarter 2022 Results
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