TAMPA, Fla. - The Baldwin Group, an independent insurance distribution firm, has reported a robust first quarter for 2024, surpassing analyst expectations for both earnings per share (EPS) and revenue.
The company, which recently rebranded from BRP (TSX:DOO) (NASDAQ:DOOO) Group, Inc., announced an adjusted EPS of $0.56, which is $0.04 higher than the analyst estimate of $0.52. Total revenue for the quarter reached $380.4 million, exceeding the consensus estimate of $376.11 million and marking a 15% increase from the same quarter last year.
The company's organic revenue growth stood at an impressive 16% year-over-year (YoY), while GAAP net income was reported at $39.1 million, resulting in a GAAP diluted EPS of $0.33.
The adjusted EBITDA experienced a significant 29% YoY growth to $101.7 million, with an adjusted EBITDA margin of 27%, a notable 280 basis point expansion from the prior-year period. This financial strength was further highlighted by a 51% YoY increase in free cash flow, which reached $53.3 million.
CEO Trevor Baldwin expressed satisfaction with the company's performance, attributing the success to double-digit organic growth and a substantial expansion in adjusted EBITDA margin, profitability, and free cash flow generation.
He emphasized the broad-based growth across the platform, driven by strong net new Client growth through innovative advice, proprietary products, and unique solutions. Baldwin also highlighted the company's strategic expansion, including its recent entry into the multifamily insurance market in Canada.
The Baldwin Group's liquidity and capital resources remain strong, with $112.1 million in cash and cash equivalents and $266.0 million of borrowing capacity under its revolving credit facility as of March 31, 2024. The company's future appears promising as it continues to focus on delivering on its strategic priorities and generating long-term value for shareholders.
While the stock movement following the earnings release was not specified, the positive results and forward-looking statements by the CEO suggest a favorable market response. The company's ticker symbol will change to BWIN, effective at the beginning of trading on NASDAQ on May 20, 2024, reflecting its new brand identity.
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