RLI FY 2016 Earnings Report — RLI Corp. Revenue & Financial Results | Market Cap Arena

FY 2016 Earnings

Reported February 24, 2017

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2016	Prior Q	FY 2015	QoQ Change	YoY Change
Revenue	$818M	—	$796M	—	2.7%
Op. Income	$157M	—	$197M	—	-20.1%
Gross Margin	33.5%	—	39.0%	—	-5.5pp
Net Margin	14.1%	—	17.3%	—	-3.2pp
EPS (Diluted)	$1.29	—	$1.56	—	-17.0%
Free Cash Flow	$158M	—	$143M	—	11.1%

Revenue Flow

Item	Amount
REVENUE	$818M
Cost of Revenue	$544M
GROSS PROFIT	$274M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$10M
SG&A Expenses	$10M
Other Expenses	$106M
Operating Expenses	$117M
Cost & Expenses	$661M
OPERATING INCOME	$157M
Interest Income	$0
Interest Expense	$7M
Other Income/Expenses	$0
INCOME BEFORE TAX	$157M
Income Tax Expense	$42M
Net Income from Continuing Ops	$115M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$115M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$115M
D&A	$6M
EBIT	$165M
EBITDA	$171M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$818M
Cost of Revenue	$544M
GROSS PROFIT	$274M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$10M
SG&A Expenses	$10M
Other Expenses	$106M
Operating Expenses	$117M
Cost & Expenses	$661M
OPERATING INCOME	$157M
Interest Income	$0
Interest Expense	$7M
Other Income/Expenses	$0
INCOME BEFORE TAX	$157M
Income Tax Expense	$42M
Net Income from Continuing Ops	$115M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$115M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$115M
D&A	$6M
EBIT	$165M
EBITDA	$171M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$115M
Depreciation & Amortization	$6M
Stock-Based Compensation	$4M
Deferred Income Tax	$0
Other Non-Cash Items	-$6M
Change in Working Capital	$55M
OPERATING CASH FLOW	$174M
Capital Expenditure	-$16M
Acquisitions (Net)	-$850.0K
Purchases of Investments	-$593M
Sales/Maturities of Investments	$563M
Other Investing Activities	-$6M
NET CASH FROM INVESTING	-$54M
Net Debt Issuance	$0
Common Stock Repurchased	$0
Common Dividends Paid	-$122M
Other Financing Activities	$0
NET CASH FROM FINANCING	-$114M
FREE CASH FLOW	$158M
Net Change in Cash	$7M

Balance Sheet

Item	Amount
Cash & Equivalents	$23M
Short-Term Investments	$0
Net Receivables	$415M
Inventory	$2.0B
Other Current Assets	$184M
TOTAL CURRENT ASSETS	$2.0B
PP&E (Net)	$55M
Goodwill	$51M
Intangible Assets	$13M
Long-Term Investments	$2.0B
Tax Assets	$64M
Other Non-Current Assets	-$1.5B
TOTAL NON-CURRENT ASSETS	$756M
TOTAL ASSETS	$2.8B
Account Payables	$18M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$70M
TOTAL CURRENT LIABILITIES	$1.8B
Long-Term Debt	$149M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$64M
Other Non-Current Liabilities	$0
TOTAL NON-CURRENT LIABILITIES	$149M
TOTAL LIABILITIES	$2.0B
Common Stock	$67M
Additional Paid-In Capital	$230M
Retained Earnings	$797M
Treasury Stock	-$404M
Accum. Other Comp. Income	$123M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$824M
Minority Interest	$0
TOTAL EQUITY	$824M
TOTAL LIABILITIES & EQUITY	$2.8B
Total Debt	$149M
Net Debt	$125M