MCY FY 2014 Earnings Report — Mercury General Corporation Revenue & Financial Results | Market Cap Arena

Mercury General CorporationMCY

FY 2014 Earnings

Reported February 9, 2015

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2014	Prior Q	FY 2013	QoQ Change	YoY Change
Revenue	$3.0B	—	$2.8B	—	6.8%
Op. Income	$247M	—	$132M	—	87.3%
Gross Margin	16.6%	—	12.5%	—	4.1pp
Net Margin	5.9%	—	4.0%	—	1.9pp
EPS (Diluted)	$3.23	—	$2.04	—	58.3%
Free Cash Flow	$220M	—	$191M	—	15.4%

Revenue Flow

Item	Amount
REVENUE	$3.0B
Cost of Revenue	$2.5B
GROSS PROFIT	$499M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$252M
Operating Expenses	$252M
Cost & Expenses	$2.8B
OPERATING INCOME	$247M
Interest Income	$0
Interest Expense	$3M
Other Income/Expenses	$0
INCOME BEFORE TAX	$247M
Income Tax Expense	$69M
Net Income from Continuing Ops	$178M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$178M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$178M
D&A	$28M
EBIT	$250M
EBITDA	$278M
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$3.0B
Cost of Revenue	$2.5B
GROSS PROFIT	$499M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$252M
Operating Expenses	$252M
Cost & Expenses	$2.8B
OPERATING INCOME	$247M
Interest Income	$0
Interest Expense	$3M
Other Income/Expenses	$0
INCOME BEFORE TAX	$247M
Income Tax Expense	$69M
Net Income from Continuing Ops	$178M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$178M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$178M
D&A	$28M
EBIT	$250M
EBITDA	$278M
EPS	$3
EPS Diluted	$3

Cash Flow Statement

Item	Amount
Net Income	$178M
Depreciation & Amortization	$28M
Stock-Based Compensation	$4M
Deferred Income Tax	-$62M
Other Non-Cash Items	-$2M
Change in Working Capital	$101M
OPERATING CASH FLOW	$247M
Capital Expenditure	-$26M
Acquisitions (Net)	$224.0K
Purchases of Investments	-$1.5B
Sales/Maturities of Investments	$1.3B
Other Investing Activities	$3M
NET CASH FROM INVESTING	-$194M
Net Debt Issuance	$100M
Common Stock Repurchased	$0
Common Dividends Paid	-$135M
Other Financing Activities	$6M
NET CASH FROM FINANCING	-$29M
FREE CASH FLOW	$220M
Net Change in Cash	$23M

Balance Sheet

Item	Amount
Cash & Equivalents	$290M
Short-Term Investments	$373M
Net Receivables	$0
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$662M
PP&E (Net)	$159M
Goodwill	$43M
Intangible Assets	$36M
Long-Term Investments	$3.4B
Tax Assets	$5M
Other Non-Current Assets	-$3.4B
TOTAL NON-CURRENT ASSETS	$243M
TOTAL ASSETS	$4.6B
Account Payables	$131M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$131M
TOTAL CURRENT LIABILITIES	$503.0K
Long-Term Debt	$290M
Deferred Revenue NC	-$5M
Deferred Tax Liabilities	$5M
Other Non-Current Liabilities	$2.4B
TOTAL NON-CURRENT LIABILITIES	$2.7B
TOTAL LIABILITIES	$2.7B
Common Stock	$89M
Additional Paid-In Capital	$4M
Retained Earnings	$1.8B
Treasury Stock	$0
Accum. Other Comp. Income	$0
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$1.9B
Minority Interest	$0
TOTAL EQUITY	$1.9B
TOTAL LIABILITIES & EQUITY	$4.6B
Total Debt	$290M
Net Debt	$93.0K