ESNT FY 2017 Earnings Report — Essent Group Ltd. Revenue & Financial Results | Market Cap Arena

Essent Group Ltd.ESNT

FY 2017 Earnings

Reported February 20, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2017	Prior Q	FY 2016	QoQ Change	YoY Change
Revenue	$577M	—	$458M	—	25.8%
Op. Income	$399M	—	$312M	—	27.8%
Gross Margin	95.3%	—	100.0%	—	-4.7pp
Net Margin	65.9%	—	48.6%	—	17.3pp
EPS (Diluted)	$3.99	—	$2.41	—	65.6%
Free Cash Flow	$366M	—	$270M	—	35.3%

Revenue Flow

Item	Amount
REVENUE	$577M
Cost of Revenue	$27M
GROSS PROFIT	$549M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$91M
SG&A Expenses	$91M
Other Expenses	$60M
Operating Expenses	$151M
Cost & Expenses	$178M
OPERATING INCOME	$399M
Interest Income	$0
Interest Expense	$5M
Other Income/Expenses	$0
INCOME BEFORE TAX	$399M
Income Tax Expense	$19M
Net Income from Continuing Ops	$380M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$380M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$380M
D&A	$4M
EBIT	$404M
EBITDA	$408M
EPS	$4
EPS Diluted	$4

Income Statement

Item	Amount
REVENUE	$577M
Cost of Revenue	$27M
GROSS PROFIT	$549M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$91M
SG&A Expenses	$91M
Other Expenses	$60M
Operating Expenses	$151M
Cost & Expenses	$178M
OPERATING INCOME	$399M
Interest Income	$0
Interest Expense	$5M
Other Income/Expenses	$0
INCOME BEFORE TAX	$399M
Income Tax Expense	$19M
Net Income from Continuing Ops	$380M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$380M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$380M
D&A	$4M
EBIT	$404M
EBITDA	$408M
EPS	$4
EPS Diluted	$4

Cash Flow Statement

Item	Amount
Net Income	$380M
Depreciation & Amortization	$4M
Stock-Based Compensation	$19M
Deferred Income Tax	-$19M
Other Non-Cash Items	$10M
Change in Working Capital	-$24M
OPERATING CASH FLOW	$369M
Capital Expenditure	-$3M
Acquisitions (Net)	$178M
Purchases of Investments	-$1.0B
Sales/Maturities of Investments	$326M
Other Investing Activities	-$178M
NET CASH FROM INVESTING	-$690M
Net Debt Issuance	$150M
Common Stock Repurchased	-$8M
Common Dividends Paid	$0
Other Financing Activities	-$3M
NET CASH FROM FINANCING	$338M
FREE CASH FLOW	$366M
Net Change in Cash	$16M

Balance Sheet

Item	Amount
Cash & Equivalents	$44M
Short-Term Investments	$2.3B
Net Receivables	$30M
Inventory	$0
Other Current Assets	-$2.3B
TOTAL CURRENT ASSETS	$73M
PP&E (Net)	$7M
Goodwill	$0
Intangible Assets	$18M
Long-Term Investments	-$2.3B
Tax Assets	$29M
Other Non-Current Assets	$4.5B
TOTAL NON-CURRENT ASSETS	$2.3B
TOTAL ASSETS	$2.7B
Account Payables	$0
Short-Term Debt	$249M
Deferred Revenue	$0
Other Current Liabilities	-$33M
TOTAL CURRENT LIABILITIES	$252M
Long-Term Debt	$249M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$128M
Other Non-Current Liabilities	$358M
TOTAL NON-CURRENT LIABILITIES	$734M
TOTAL LIABILITIES	$734M
Common Stock	$1M
Additional Paid-In Capital	$1.1B
Retained Earnings	$815M
Treasury Stock	$0
Accum. Other Comp. Income	-$3M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$1.9B
Minority Interest	$0
TOTAL EQUITY	$1.9B
TOTAL LIABILITIES & EQUITY	$2.7B
Total Debt	$249M
Net Debt	$205M