MCY Q2 2016 Earnings Report — Mercury General Corporation Revenue & Financial Results | Market Cap Arena

Mercury General CorporationMCY

Q2 2016 Earnings

Reported August 2, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2016	Q1 2016	Q2 2015	QoQ Change	YoY Change
Revenue	$858M	$824M	—	4.1%	—
Op. Income	$64M	$26M	—	147.1%	—
Gross Margin	14.3%	10.7%	—	3.6pp	—
Net Margin	5.7%	2.8%	—	2.9pp	—
EPS (Diluted)	$0.88	$0.42	—	109.5%	—
Free Cash Flow	$52M	$41M	—	25.8%	—

Revenue Flow

Item	Amount
REVENUE	$858M
Cost of Revenue	$735M
GROSS PROFIT	$123M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$59M
Operating Expenses	$59M
Cost & Expenses	$794M
OPERATING INCOME	$64M
Interest Income	$0
Interest Expense	$960.0K
Other Income/Expenses	$0
INCOME BEFORE TAX	$64M
Income Tax Expense	$15M
Net Income from Continuing Ops	$49M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$49M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$49M
D&A	$13M
EBIT	$65M
EBITDA	$78M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$858M
Cost of Revenue	$735M
GROSS PROFIT	$123M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$59M
Operating Expenses	$59M
Cost & Expenses	$794M
OPERATING INCOME	$64M
Interest Income	$0
Interest Expense	$960.0K
Other Income/Expenses	$0
INCOME BEFORE TAX	$64M
Income Tax Expense	$15M
Net Income from Continuing Ops	$49M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$49M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$49M
D&A	$13M
EBIT	$65M
EBITDA	$78M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$49M
Depreciation & Amortization	$7M
Stock-Based Compensation	$36.0K
Deferred Income Tax	-$39M
Other Non-Cash Items	-$13M
Change in Working Capital	$52M
OPERATING CASH FLOW	$56M
Capital Expenditure	-$4M
Acquisitions (Net)	$0
Purchases of Investments	-$309M
Sales/Maturities of Investments	$289M
Other Investing Activities	$1M
NET CASH FROM INVESTING	-$24M
Net Debt Issuance	$0
Common Stock Repurchased	$0
Common Dividends Paid	-$34M
Other Financing Activities	$0
NET CASH FROM FINANCING	-$34M
FREE CASH FLOW	$52M
Net Change in Cash	-$2M

Balance Sheet

Item	Amount
Cash & Equivalents	$233M
Short-Term Investments	$181M
Net Receivables	$0
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$415M
PP&E (Net)	$157M
Goodwill	$43M
Intangible Assets	$29M
Long-Term Investments	$3.5B
Tax Assets	$5M
Other Non-Current Assets	-$3.5B
TOTAL NON-CURRENT ASSETS	$234M
TOTAL ASSETS	$4.7B
Account Payables	$116M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$116M
TOTAL CURRENT LIABILITIES	$10M
Long-Term Debt	$290M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$2.6B
TOTAL NON-CURRENT LIABILITIES	$2.9B
TOTAL LIABILITIES	$2.9B
Common Stock	$94M
Additional Paid-In Capital	$3M
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	$4.7B
Total Debt	$290M
Net Debt	$57M