THG FY 2013 Earnings Report — The Hanover Insurance Group, Inc. Revenue & Financial Results | Market Cap Arena

The Hanover Insurance Group, Inc.THG

FY 2013 Earnings

Reported February 25, 2014

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2013	Prior Q	FY 2012	QoQ Change	YoY Change
Revenue	$4.8B	—	—	—	—
Op. Income	$329M	—	—	—	—
Gross Margin	22.1%	—	—	—	—
Net Margin	5.2%	—	—	—	—
EPS (Diluted)	$5.59	—	—	—	—
Free Cash Flow	$361M	—	—	—	—

Revenue Flow

Item	Amount
REVENUE	$4.8B
Cost of Revenue	$3.7B
GROSS PROFIT	$1.1B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$733M
Operating Expenses	$733M
Cost & Expenses	$4.5B
OPERATING INCOME	$329M
Interest Income	$0
Interest Expense	$65M
Other Income/Expenses	$0
INCOME BEFORE TAX	$329M
Income Tax Expense	$83M
Net Income from Continuing Ops	$246M
Net Income from Discontinued Ops	$5M
Other Adjustments	$0
NET INCOME	$251M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$251M
D&A	$35M
EBIT	$394M
EBITDA	$429M
EPS	$6
EPS Diluted	$6

Income Statement

Item	Amount
REVENUE	$4.8B
Cost of Revenue	$3.7B
GROSS PROFIT	$1.1B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$733M
Operating Expenses	$733M
Cost & Expenses	$4.5B
OPERATING INCOME	$329M
Interest Income	$0
Interest Expense	$65M
Other Income/Expenses	$0
INCOME BEFORE TAX	$329M
Income Tax Expense	$83M
Net Income from Continuing Ops	$246M
Net Income from Discontinued Ops	$5M
Other Adjustments	$0
NET INCOME	$251M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$251M
D&A	$35M
EBIT	$394M
EBITDA	$429M
EPS	$6
EPS Diluted	$6

Cash Flow Statement

Item	Amount
Net Income	$251M
Depreciation & Amortization	$35M
Stock-Based Compensation	$12M
Deferred Income Tax	$75M
Other Non-Cash Items	-$18M
Change in Working Capital	$28M
OPERATING CASH FLOW	$384M
Capital Expenditure	-$23M
Acquisitions (Net)	$0
Purchases of Investments	-$1.9B
Sales/Maturities of Investments	$1.6B
Other Investing Activities	$0
NET CASH FROM INVESTING	-$359M
Net Debt Issuance	$29M
Common Stock Repurchased	-$78M
Common Dividends Paid	-$60M
Other Financing Activities	$4M
NET CASH FROM FINANCING	-$106M
FREE CASH FLOW	$361M
Net Change in Cash	-$79M

Balance Sheet

Item	Amount
Cash & Equivalents	$486M
Short-Term Investments	$7.0B
Net Receivables	$3.7B
Inventory	$0
Other Current Assets	-$11.1B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$0
Goodwill	$185M
Intangible Assets	$0
Long-Term Investments	$7.4B
Tax Assets	$0
Other Non-Current Assets	-$7.6B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$13.4B
Account Payables	$375M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$637M
TOTAL CURRENT LIABILITIES	$1.0B
Long-Term Debt	$904M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$9.9B
TOTAL NON-CURRENT LIABILITIES	$10.8B
TOTAL LIABILITIES	$10.8B
Common Stock	$600.0K
Additional Paid-In Capital	$1.8B
Retained Earnings	$1.3B
Treasury Stock	-$763M
Accum. Other Comp. Income	$178M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$2.6B
Minority Interest	$0
TOTAL EQUITY	$2.6B
TOTAL LIABILITIES & EQUITY	$13.4B
Total Debt	$904M
Net Debt	$418M