MKL Q3 2018 Earnings Report — Markel Corporation Revenue & Financial Results | Market Cap Arena

Markel CorporationMKL

Q3 2018 Earnings

Reported October 30, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2018	Q2 2018	Q3 2017	QoQ Change	YoY Change
Revenue	$2.2B	$2.1B	—	8.1%	—
Op. Income	$519M	$361M	—	43.9%	—
Gross Margin	61.2%	64.8%	—	-3.6pp	—
Net Margin	18.3%	13.4%	—	4.9pp	—
EPS (Diluted)	$28.50	$19.97	—	42.7%	—
Free Cash Flow	$429M	$221M	—	94.3%	—

Revenue Flow

Item	Amount
REVENUE	$2.2B
Cost of Revenue	$869M
GROSS PROFIT	$1.4B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$132M
SG&A Expenses	$132M
Other Expenses	$721M
Operating Expenses	$853M
Cost & Expenses	$1.7B
OPERATING INCOME	$519M
Interest Income	$115M
Interest Expense	$38M
Other Income/Expenses	$0
INCOME BEFORE TAX	$519M
Income Tax Expense	$110M
Net Income from Continuing Ops	$409M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$409M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$397M
D&A	$28M
EBIT	$557M
EBITDA	$585M
EPS	$29
EPS Diluted	$29

Income Statement

Item	Amount
REVENUE	$2.2B
Cost of Revenue	$869M
GROSS PROFIT	$1.4B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$132M
SG&A Expenses	$132M
Other Expenses	$721M
Operating Expenses	$853M
Cost & Expenses	$1.7B
OPERATING INCOME	$519M
Interest Income	$115M
Interest Expense	$38M
Other Income/Expenses	$0
INCOME BEFORE TAX	$519M
Income Tax Expense	$110M
Net Income from Continuing Ops	$409M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$409M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$397M
D&A	$28M
EBIT	$557M
EBITDA	$585M
EPS	$29
EPS Diluted	$29

Cash Flow Statement

Item	Amount
Net Income	$409M
Depreciation & Amortization	$41M
Stock-Based Compensation	$0
Deferred Income Tax	$0
Other Non-Cash Items	$47M
Change in Working Capital	$0
OPERATING CASH FLOW	$456M
Capital Expenditure	-$26M
Acquisitions (Net)	-$4M
Purchases of Investments	-$187M
Sales/Maturities of Investments	$212M
Other Investing Activities	-$3M
NET CASH FROM INVESTING	-$8M
Net Debt Issuance	-$29M
Common Stock Repurchased	-$7M
Common Dividends Paid	$0
Other Financing Activities	-$25M
NET CASH FROM FINANCING	-$60M
FREE CASH FLOW	$429M
Net Change in Cash	$383M

Balance Sheet

Item	Amount
Cash & Equivalents	$2.6B
Short-Term Investments	$0
Net Receivables	$1.8B
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$4.4B
PP&E (Net)	$0
Goodwill	$1.8B
Intangible Assets	$1.2B
Long-Term Investments	$18.4B
Tax Assets	$0
Other Non-Current Assets	$1.7B
TOTAL NON-CURRENT ASSETS	$23.2B
TOTAL ASSETS	$27.6B
Account Payables	$5.3B
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$5.3B
Long-Term Debt	$3.0B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$14.7B
TOTAL NON-CURRENT LIABILITIES	$17.7B
TOTAL LIABILITIES	$17.7B
Common Stock	$3.4B
Additional Paid-In Capital	$0
Retained Earnings	$6.6B
Treasury Stock	$0
Accum. Other Comp. Income	-$185M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$9.8B
Minority Interest	$155M
TOTAL EQUITY	$9.9B
TOTAL LIABILITIES & EQUITY	$27.6B
Total Debt	$3.0B
Net Debt	$366M