THG FY 2006 Earnings Report — The Hanover Insurance Group, Inc. Revenue & Financial Results | Market Cap Arena

The Hanover Insurance Group, Inc.THG

FY 2006 Earnings

Reported March 1, 2007

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2006	Prior Q	FY 2005	QoQ Change	YoY Change
Revenue	$2.6B	—	—	—	—
Op. Income	$279M	—	—	—	—
Gross Margin	26.2%	—	—	—	—
Net Margin	6.4%	—	—	—	—
EPS (Diluted)	$3.27	—	—	—	—
Free Cash Flow	$33M	—	—	—	—

Revenue Flow

Item	Amount
REVENUE	$2.6B
Cost of Revenue	$1.9B
GROSS PROFIT	$693M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$414M
Operating Expenses	$414M
Cost & Expenses	$2.4B
OPERATING INCOME	$279M
Interest Income	$0
Interest Expense	$0
Other Income/Expenses	$0
INCOME BEFORE TAX	$279M
Income Tax Expense	$88M
Net Income from Continuing Ops	$192M
Net Income from Discontinued Ops	-$22M
Other Adjustments	$600.0K
NET INCOME	$170M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$170M
D&A	$21M
EBIT	$279M
EBITDA	$301M
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$2.6B
Cost of Revenue	$1.9B
GROSS PROFIT	$693M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$414M
Operating Expenses	$414M
Cost & Expenses	$2.4B
OPERATING INCOME	$279M
Interest Income	$0
Interest Expense	$0
Other Income/Expenses	$0
INCOME BEFORE TAX	$279M
Income Tax Expense	$88M
Net Income from Continuing Ops	$192M
Net Income from Discontinued Ops	-$22M
Other Adjustments	$600.0K
NET INCOME	$170M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$170M
D&A	$21M
EBIT	$279M
EBITDA	$301M
EPS	$3
EPS Diluted	$3

Cash Flow Statement

Item	Amount
Net Income	$170M
Depreciation & Amortization	$21M
Stock-Based Compensation	$0
Deferred Income Tax	$65M
Other Non-Cash Items	$158M
Change in Working Capital	-$373M
OPERATING CASH FLOW	$42M
Capital Expenditure	-$9M
Acquisitions (Net)	$51M
Purchases of Investments	-$1.9B
Sales/Maturities of Investments	$2.0B
Other Investing Activities	-$399M
NET CASH FROM INVESTING	$98M
Net Debt Issuance	-$20M
Common Stock Repurchased	-$200M
Common Dividends Paid	-$15M
Other Financing Activities	-$478M
NET CASH FROM FINANCING	-$469M
FREE CASH FLOW	$33M
Net Change in Cash	-$329M

Balance Sheet

Item	Amount
Cash & Equivalents	$373M
Short-Term Investments	$0
Net Receivables	$1.9B
Inventory	$0
Other Current Assets	-$2.3B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$0
Goodwill	$121M
Intangible Assets	$0
Long-Term Investments	$5.6B
Tax Assets	$0
Other Non-Current Assets	-$5.8B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$9.9B
Account Payables	$0
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$53M
TOTAL CURRENT LIABILITIES	$928M
Long-Term Debt	$509M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$6.4B
TOTAL NON-CURRENT LIABILITIES	$6.9B
TOTAL LIABILITIES	$7.9B
Common Stock	$600.0K
Additional Paid-In Capital	$1.8B
Retained Earnings	$712M
Treasury Stock	-$488M
Accum. Other Comp. Income	-$40M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$2.0B
Minority Interest	$0
TOTAL EQUITY	$2.0B
TOTAL LIABILITIES & EQUITY	$9.9B
Total Debt	$509M
Net Debt	$136M