THG FY 2008 Earnings Report — The Hanover Insurance Group, Inc. Revenue & Financial Results | Market Cap Arena

The Hanover Insurance Group, Inc.THG

FY 2008 Earnings

Reported February 27, 2009

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2008	Prior Q	FY 2007	QoQ Change	YoY Change
Revenue	$2.7B	—	$2.7B	—	0.2%
Op. Income	$164M	—	$342M	—	-51.9%
Gross Margin	18.6%	—	25.9%	—	-7.3pp
Net Margin	0.8%	—	9.5%	—	-8.7pp
EPS (Diluted)	$0.40	—	$4.83	—	-91.7%
Free Cash Flow	$200M	—	$64M	—	213.5%

Revenue Flow

Item	Amount
REVENUE	$2.7B
Cost of Revenue	$2.2B
GROSS PROFIT	$498M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$334M
Operating Expenses	$334M
Cost & Expenses	$2.5B
OPERATING INCOME	$164M
Interest Income	$0
Interest Expense	$0
Other Income/Expenses	$0
INCOME BEFORE TAX	$164M
Income Tax Expense	$80M
Net Income from Continuing Ops	$85M
Net Income from Discontinued Ops	-$64M
Other Adjustments	$0
NET INCOME	$21M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$21M
D&A	$15M
EBIT	$164M
EBITDA	$180M
EPS	$0
EPS Diluted	$0

Income Statement

Item	Amount
REVENUE	$2.7B
Cost of Revenue	$2.2B
GROSS PROFIT	$498M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$334M
Operating Expenses	$334M
Cost & Expenses	$2.5B
OPERATING INCOME	$164M
Interest Income	$0
Interest Expense	$0
Other Income/Expenses	$0
INCOME BEFORE TAX	$164M
Income Tax Expense	$80M
Net Income from Continuing Ops	$85M
Net Income from Discontinued Ops	-$64M
Other Adjustments	$0
NET INCOME	$21M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$21M
D&A	$15M
EBIT	$164M
EBITDA	$180M
EPS	$0
EPS Diluted	$0

Cash Flow Statement

Item	Amount
Net Income	$21M
Depreciation & Amortization	$15M
Stock-Based Compensation	$12M
Deferred Income Tax	$54M
Other Non-Cash Items	$168M
Change in Working Capital	-$59M
OPERATING CASH FLOW	$210M
Capital Expenditure	-$10M
Acquisitions (Net)	-$100M
Purchases of Investments	-$1.0B
Sales/Maturities of Investments	$1.3B
Other Investing Activities	-$227M
NET CASH FROM INVESTING	$141M
Net Debt Issuance	-$51M
Common Stock Repurchased	-$59M
Common Dividends Paid	-$23M
Other Financing Activities	-$13M
NET CASH FROM FINANCING	-$145M
FREE CASH FLOW	$200M
Net Change in Cash	$187M

Balance Sheet

Item	Amount
Cash & Equivalents	$398M
Short-Term Investments	$0
Net Receivables	$579M
Inventory	$0
Other Current Assets	-$976M
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$0
Goodwill	$170M
Intangible Assets	$170M
Long-Term Investments	$4.2B
Tax Assets	$0
Other Non-Current Assets	-$4.4B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$9.2B
Account Payables	$61M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$3.3B
TOTAL CURRENT LIABILITIES	$3.9B
Long-Term Debt	$531M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$2.9B
TOTAL NON-CURRENT LIABILITIES	$3.4B
TOTAL LIABILITIES	$7.3B
Common Stock	$600.0K
Additional Paid-In Capital	$1.8B
Retained Earnings	$950M
Treasury Stock	-$482M
Accum. Other Comp. Income	-$385M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$1.9B
Minority Interest	$0
TOTAL EQUITY	$1.9B
TOTAL LIABILITIES & EQUITY	$9.2B
Total Debt	$531M
Net Debt	$115M