RLI FY 2014 Earnings Report — RLI Corp. Revenue & Financial Results | Market Cap Arena

FY 2014 Earnings

Reported February 26, 2015

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2014	Prior Q	FY 2013	QoQ Change	YoY Change
Revenue	$777M	—	$708M	—	9.8%
Op. Income	$189M	—	$176M	—	7.9%
Gross Margin	38.2%	—	39.4%	—	-1.2pp
Net Margin	17.4%	—	17.8%	—	-0.4pp
EPS (Diluted)	$1.54	—	$1.28	—	20.2%
Free Cash Flow	$116M	—	$110M	—	5.8%

Revenue Flow

Item	Amount
REVENUE	$777M
Cost of Revenue	$481M
GROSS PROFIT	$297M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$10M
SG&A Expenses	$10M
Other Expenses	$97M
Operating Expenses	$107M
Cost & Expenses	$588M
OPERATING INCOME	$189M
Interest Income	$0
Interest Expense	$7M
Other Income/Expenses	$0
INCOME BEFORE TAX	$189M
Income Tax Expense	$54M
Net Income from Continuing Ops	$135M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$135M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$135M
D&A	$5M
EBIT	$197M
EBITDA	$201M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$777M
Cost of Revenue	$481M
GROSS PROFIT	$297M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$10M
SG&A Expenses	$10M
Other Expenses	$97M
Operating Expenses	$107M
Cost & Expenses	$588M
OPERATING INCOME	$189M
Interest Income	$0
Interest Expense	$7M
Other Income/Expenses	$0
INCOME BEFORE TAX	$189M
Income Tax Expense	$54M
Net Income from Continuing Ops	$135M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$135M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$135M
D&A	$5M
EBIT	$197M
EBITDA	$201M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$135M
Depreciation & Amortization	$5M
Stock-Based Compensation	$4M
Deferred Income Tax	$0
Other Non-Cash Items	-$18M
Change in Working Capital	-$3M
OPERATING CASH FLOW	$123M
Capital Expenditure	-$7M
Acquisitions (Net)	-$5M
Purchases of Investments	-$488M
Sales/Maturities of Investments	$529M
Other Investing Activities	-$5M
NET CASH FROM INVESTING	$23M
Net Debt Issuance	$0
Common Stock Repurchased	$0
Common Dividends Paid	-$160M
Other Financing Activities	$0
NET CASH FROM FINANCING	-$155M
FREE CASH FLOW	$116M
Net Change in Cash	-$9M

Balance Sheet

Item	Amount
Cash & Equivalents	$47M
Short-Term Investments	$0
Net Receivables	$0
Inventory	$1.9B
Other Current Assets	$0
TOTAL CURRENT ASSETS	$2.0B
PP&E (Net)	$43M
Goodwill	$58M
Intangible Assets	$79M
Long-Term Investments	$2.0B
Tax Assets	$82.3B
Other Non-Current Assets	-$83.6B
TOTAL NON-CURRENT ASSETS	$766M
TOTAL ASSETS	$2.8B
Account Payables	$38M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$101M
TOTAL CURRENT LIABILITIES	$1.8B
Long-Term Debt	$150M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$82M
Other Non-Current Liabilities	$1.8B
TOTAL NON-CURRENT LIABILITIES	$150M
TOTAL LIABILITIES	$1.9B
Common Stock	$66M
Additional Paid-In Capital	$214M
Retained Earnings	$787M
Treasury Stock	-$407M
Accum. Other Comp. Income	$171M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$845M
Minority Interest	$0
TOTAL EQUITY	$845M
TOTAL LIABILITIES & EQUITY	$2.8B
Total Debt	$150M
Net Debt	$103M