RLI FY 2011 Earnings Report — RLI Corp. Revenue & Financial Results | Market Cap Arena

FY 2011 Earnings

Reported February 28, 2012

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2011	Prior Q	FY 2010	QoQ Change	YoY Change
Revenue	$621M	—	$586M	—	6.1%
Op. Income	$184M	—	$178M	—	2.9%
Gross Margin	44.7%	—	33.0%	—	11.7pp
Net Margin	20.4%	—	21.8%	—	-1.4pp
EPS (Diluted)	$1.52	—	$1.50	—	1.7%
Free Cash Flow	$114M	—	$98M	—	16.4%

Revenue Flow

Item	Amount
REVENUE	$621M
Cost of Revenue	$344M
GROSS PROFIT	$278M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$8M
SG&A Expenses	$8M
Other Expenses	$86M
Operating Expenses	$94M
Cost & Expenses	$438M
OPERATING INCOME	$184M
Interest Income	$68M
Interest Expense	$6M
Other Income/Expenses	$0
INCOME BEFORE TAX	$184M
Income Tax Expense	$57M
Net Income from Continuing Ops	$127M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$127M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$127M
D&A	$3M
EBIT	$190M
EBITDA	$193M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$621M
Cost of Revenue	$344M
GROSS PROFIT	$278M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$8M
SG&A Expenses	$8M
Other Expenses	$86M
Operating Expenses	$94M
Cost & Expenses	$438M
OPERATING INCOME	$184M
Interest Income	$68M
Interest Expense	$6M
Other Income/Expenses	$0
INCOME BEFORE TAX	$184M
Income Tax Expense	$57M
Net Income from Continuing Ops	$127M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$127M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$127M
D&A	$3M
EBIT	$190M
EBITDA	$193M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$131M
Depreciation & Amortization	$3M
Stock-Based Compensation	$0
Deferred Income Tax	$10M
Other Non-Cash Items	-$21M
Change in Working Capital	$13M
OPERATING CASH FLOW	$118M
Capital Expenditure	-$4M
Acquisitions (Net)	-$121M
Purchases of Investments	-$747M
Sales/Maturities of Investments	$960M
Other Investing Activities	$0
NET CASH FROM INVESTING	$88M
Net Debt Issuance	$0
Common Stock Repurchased	-$7M
Common Dividends Paid	-$131M
Other Financing Activities	$4M
NET CASH FROM FINANCING	-$124M
FREE CASH FLOW	$114M
Net Change in Cash	-$124M

Balance Sheet

Item	Amount
Cash & Equivalents	$105M
Short-Term Investments	$0
Net Receivables	$478M
Inventory	$0
Other Current Assets	$243M
TOTAL CURRENT ASSETS	$2.6B
PP&E (Net)	$20M
Goodwill	$60M
Intangible Assets	$0
Long-Term Investments	$1.8B
Tax Assets	$34M
Other Non-Current Assets	-$1.9B
TOTAL NON-CURRENT ASSETS	$81M
TOTAL ASSETS	$2.7B
Account Payables	$51M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$110M
TOTAL CURRENT LIABILITIES	$1.8B
Long-Term Debt	$100M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	-$100M
TOTAL NON-CURRENT LIABILITIES	$100M
TOTAL LIABILITIES	$1.9B
Common Stock	$33M
Additional Paid-In Capital	$228M
Retained Earnings	$834M
Treasury Stock	-$403M
Accum. Other Comp. Income	$117M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$819M
Minority Interest	$0
TOTAL EQUITY	$819M
TOTAL LIABILITIES & EQUITY	$2.7B
Total Debt	$100M
Net Debt	-$5M