MCY FY 2016 Earnings Report — Mercury General Corporation Revenue & Financial Results | Market Cap Arena

Mercury General CorporationMCY

FY 2016 Earnings

Reported February 9, 2017

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2016	Prior Q	FY 2015	QoQ Change	YoY Change
Revenue	$3.2B	—	$3.0B	—	7.3%
Op. Income	$71M	—	$71M	—	0.2%
Gross Margin	9.6%	—	10.8%	—	-1.2pp
Net Margin	2.3%	—	2.5%	—	-0.2pp
EPS (Diluted)	$1.32	—	$1.35	—	-2.2%
Free Cash Flow	$270M	—	$170M	—	59.0%

Revenue Flow

Item	Amount
REVENUE	$3.2B
Cost of Revenue	$2.9B
GROSS PROFIT	$310M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$239M
Operating Expenses	$239M
Cost & Expenses	$3.2B
OPERATING INCOME	$71M
Interest Income	$0
Interest Expense	$4M
Other Income/Expenses	$0
INCOME BEFORE TAX	$71M
Income Tax Expense	-$2M
Net Income from Continuing Ops	$73M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$73M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$73M
D&A	$53M
EBIT	$75M
EBITDA	$128M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$3.2B
Cost of Revenue	$2.9B
GROSS PROFIT	$310M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$239M
Operating Expenses	$239M
Cost & Expenses	$3.2B
OPERATING INCOME	$71M
Interest Income	$0
Interest Expense	$4M
Other Income/Expenses	$0
INCOME BEFORE TAX	$71M
Income Tax Expense	-$2M
Net Income from Continuing Ops	$73M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$73M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$73M
D&A	$53M
EBIT	$75M
EBITDA	$128M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$73M
Depreciation & Amortization	$26M
Stock-Based Compensation	$142.0K
Deferred Income Tax	$60M
Other Non-Cash Items	-$4M
Change in Working Capital	$132M
OPERATING CASH FLOW	$287M
Capital Expenditure	-$17M
Acquisitions (Net)	$14.0K
Purchases of Investments	-$2.0B
Sales/Maturities of Investments	$1.8B
Other Investing Activities	$4M
NET CASH FROM INVESTING	-$227M
Net Debt Issuance	$30M
Common Stock Repurchased	-$3M
Common Dividends Paid	-$137M
Other Financing Activities	$6M
NET CASH FROM FINANCING	-$105M
FREE CASH FLOW	$270M
Net Change in Cash	-$44M

Balance Sheet

Item	Amount
Cash & Equivalents	$220M
Short-Term Investments	$376M
Net Receivables	$0
Inventory	-$2.0B
Other Current Assets	$0
TOTAL CURRENT ASSETS	$596M
PP&E (Net)	$156M
Goodwill	$43M
Intangible Assets	$26M
Long-Term Investments	$3.5B
Tax Assets	$45M
Other Non-Current Assets	-$3.5B
TOTAL NON-CURRENT ASSETS	$270M
TOTAL ASSETS	$4.8B
Account Payables	$112M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$122M
TOTAL CURRENT LIABILITIES	$10M
Long-Term Debt	$320M
Deferred Revenue NC	-$110M
Deferred Tax Liabilities	$110M
Other Non-Current Liabilities	$2.7B
TOTAL NON-CURRENT LIABILITIES	$3.0B
TOTAL LIABILITIES	$3.0B
Common Stock	$96M
Additional Paid-In Capital	$0
Retained Earnings	$1.7B
Treasury Stock	$0
Accum. Other Comp. Income	$0
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$1.8B
Minority Interest	$0
TOTAL EQUITY	$1.8B
TOTAL LIABILITIES & EQUITY	$4.8B
Total Debt	$320M
Net Debt	$100M