THG FY 2015 Earnings Report — The Hanover Insurance Group, Inc. Revenue & Financial Results | Market Cap Arena

The Hanover Insurance Group, Inc.THG

FY 2015 Earnings

Reported February 25, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2015	Prior Q	FY 2014	QoQ Change	YoY Change
Revenue	$5.0B	—	$5.1B	—	-0.4%
Op. Income	$439M	—	$378M	—	16.2%
Gross Margin	22.4%	—	21.7%	—	0.7pp
Net Margin	6.6%	—	5.6%	—	1.0pp
EPS (Diluted)	$7.40	—	$6.28	—	17.8%
Free Cash Flow	$419M	—	$554M	—	-24.3%

Revenue Flow

Item	Amount
REVENUE	$5.0B
Cost of Revenue	$3.9B
GROSS PROFIT	$1.1B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$692M
Operating Expenses	$692M
Cost & Expenses	$4.6B
OPERATING INCOME	$439M
Interest Income	$0
Interest Expense	$61M
Other Income/Expenses	$0
INCOME BEFORE TAX	$439M
Income Tax Expense	$109M
Net Income from Continuing Ops	$331M
Net Income from Discontinued Ops	$700.0K
Other Adjustments	$0
NET INCOME	$332M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$332M
D&A	$30M
EBIT	$500M
EBITDA	$530M
EPS	$8
EPS Diluted	$7

Income Statement

Item	Amount
REVENUE	$5.0B
Cost of Revenue	$3.9B
GROSS PROFIT	$1.1B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$692M
Operating Expenses	$692M
Cost & Expenses	$4.6B
OPERATING INCOME	$439M
Interest Income	$0
Interest Expense	$61M
Other Income/Expenses	$0
INCOME BEFORE TAX	$439M
Income Tax Expense	$109M
Net Income from Continuing Ops	$331M
Net Income from Discontinued Ops	$700.0K
Other Adjustments	$0
NET INCOME	$332M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$332M
D&A	$30M
EBIT	$500M
EBITDA	$530M
EPS	$8
EPS Diluted	$7

Cash Flow Statement

Item	Amount
Net Income	$332M
Depreciation & Amortization	$30M
Stock-Based Compensation	$12M
Deferred Income Tax	$53M
Other Non-Cash Items	-$36M
Change in Working Capital	$54M
OPERATING CASH FLOW	$445M
Capital Expenditure	-$20M
Acquisitions (Net)	$44M
Purchases of Investments	-$2.2B
Sales/Maturities of Investments	$2.0B
Other Investing Activities	-$1M
NET CASH FROM INVESTING	-$172M
Net Debt Issuance	-$114M
Common Stock Repurchased	-$127M
Common Dividends Paid	-$74M
Other Financing Activities	$15M
NET CASH FROM FINANCING	-$301M
FREE CASH FLOW	$419M
Net Change in Cash	-$35M

Balance Sheet

Item	Amount
Cash & Equivalents	$339M
Short-Term Investments	$7.0B
Net Receivables	$4.0B
Inventory	$0
Other Current Assets	-$11.3B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$0
Goodwill	$186M
Intangible Assets	$0
Long-Term Investments	$7.6B
Tax Assets	$0
Other Non-Current Assets	-$7.7B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$13.8B
Account Payables	$205M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$725M
TOTAL CURRENT LIABILITIES	$930M
Long-Term Debt	$803M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$10.1B
TOTAL NON-CURRENT LIABILITIES	$10.9B
TOTAL LIABILITIES	$10.9B
Common Stock	$600.0K
Additional Paid-In Capital	$1.8B
Retained Earnings	$1.8B
Treasury Stock	-$847M
Accum. Other Comp. Income	$54M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$2.8B
Minority Interest	$0
TOTAL EQUITY	$2.8B
TOTAL LIABILITIES & EQUITY	$13.8B
Total Debt	$803M
Net Debt	$464M