MCY FY 2017 Earnings Report — Mercury General Corporation Revenue & Financial Results | Market Cap Arena

Mercury General CorporationMCY

FY 2017 Earnings

Reported February 8, 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	$3.4B	—	$3.2B	—	5.8%
Op. Income	$167M	—	$71M	—	136.2%
Gross Margin	12.2%	—	9.6%	—	2.6pp
Net Margin	4.2%	—	2.3%	—	2.0pp
EPS (Diluted)	$2.62	—	$1.32	—	98.5%
Free Cash Flow	$322M	—	$270M	—	19.0%

Revenue Flow

Item	Amount
REVENUE	$3.4B
Cost of Revenue	$3.0B
GROSS PROFIT	$416M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$249M
Operating Expenses	$249M
Cost & Expenses	$3.2B
OPERATING INCOME	$167M
Interest Income	$0
Interest Expense	$15M
Other Income/Expenses	$0
INCOME BEFORE TAX	$167M
Income Tax Expense	$22M
Net Income from Continuing Ops	$145M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$145M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$145M
D&A	$55M
EBIT	$182M
EBITDA	$238M
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$3.4B
Cost of Revenue	$3.0B
GROSS PROFIT	$416M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$249M
Operating Expenses	$249M
Cost & Expenses	$3.2B
OPERATING INCOME	$167M
Interest Income	$0
Interest Expense	$15M
Other Income/Expenses	$0
INCOME BEFORE TAX	$167M
Income Tax Expense	$22M
Net Income from Continuing Ops	$145M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$145M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$145M
D&A	$55M
EBIT	$182M
EBITDA	$238M
EPS	$3
EPS Diluted	$3

Cash Flow Statement

Item	Amount
Net Income	$145M
Depreciation & Amortization	$55M
Stock-Based Compensation	$60.0K
Deferred Income Tax	-$87M
Other Non-Cash Items	$42M
Change in Working Capital	$185M
OPERATING CASH FLOW	$341M
Capital Expenditure	-$19M
Acquisitions (Net)	$6M
Purchases of Investments	-$1.6B
Sales/Maturities of Investments	$1.4B
Other Investing Activities	$2M
NET CASH FROM INVESTING	-$186M
Net Debt Issuance	$51M
Common Stock Repurchased	$0
Common Dividends Paid	-$138M
Other Financing Activities	$2M
NET CASH FROM FINANCING	-$85M
FREE CASH FLOW	$322M
Net Change in Cash	$71M

Balance Sheet

Item	Amount
Cash & Equivalents	$291M
Short-Term Investments	$303M
Net Receivables	$0
Inventory	-$2.0B
Other Current Assets	$0
TOTAL CURRENT ASSETS	$594M
PP&E (Net)	$145M
Goodwill	$43M
Intangible Assets	$21M
Long-Term Investments	$3.7B
Tax Assets	$23M
Other Non-Current Assets	-$3.7B
TOTAL NON-CURRENT ASSETS	$232M
TOTAL ASSETS	$5.1B
Account Payables	$108M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$108M
TOTAL CURRENT LIABILITIES	$61M
Long-Term Debt	$371M
Deferred Revenue NC	-$23M
Deferred Tax Liabilities	$23M
Other Non-Current Liabilities	$3.0B
TOTAL NON-CURRENT LIABILITIES	$3.3B
TOTAL LIABILITIES	$3.3B
Common Stock	$98M
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	$5.1B
Total Debt	$371M
Net Debt	$80M