THG FY 2016 Earnings Report — The Hanover Insurance Group, Inc. Revenue & Financial Results | Market Cap Arena

The Hanover Insurance Group, Inc.THG

FY 2016 Earnings

Reported February 22, 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	$4.0B	—	$5.0B	—	-21.4%
Op. Income	$66M	—	$439M	—	-85.0%
Gross Margin	15.5%	—	22.4%	—	-6.9pp
Net Margin	3.9%	—	6.6%	—	-2.7pp
EPS (Diluted)	$3.59	—	$7.40	—	-51.5%
Free Cash Flow	$722M	—	$419M	—	72.3%

Revenue Flow

Item	Amount
REVENUE	$4.0B
Cost of Revenue	$3.3B
GROSS PROFIT	$616M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$550M
Operating Expenses	$550M
Cost & Expenses	$3.9B
OPERATING INCOME	$66M
Interest Income	$0
Interest Expense	$51M
Other Income/Expenses	$0
INCOME BEFORE TAX	$66M
Income Tax Expense	-$1M
Net Income from Continuing Ops	$67M
Net Income from Discontinued Ops	$88M
Other Adjustments	$0
NET INCOME	$155M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$155M
D&A	$31M
EBIT	$117M
EBITDA	$148M
EPS	$4
EPS Diluted	$4

Income Statement

Item	Amount
REVENUE	$4.0B
Cost of Revenue	$3.3B
GROSS PROFIT	$616M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$550M
Operating Expenses	$550M
Cost & Expenses	$3.9B
OPERATING INCOME	$66M
Interest Income	$0
Interest Expense	$51M
Other Income/Expenses	$0
INCOME BEFORE TAX	$66M
Income Tax Expense	-$1M
Net Income from Continuing Ops	$67M
Net Income from Discontinued Ops	$88M
Other Adjustments	$0
NET INCOME	$155M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$155M
D&A	$31M
EBIT	$117M
EBITDA	$148M
EPS	$4
EPS Diluted	$4

Cash Flow Statement

Item	Amount
Net Income	$155M
Depreciation & Amortization	$31M
Stock-Based Compensation	$12M
Deferred Income Tax	-$13M
Other Non-Cash Items	$96M
Change in Working Capital	$463M
OPERATING CASH FLOW	$743M
Capital Expenditure	-$16M
Acquisitions (Net)	$0
Purchases of Investments	-$2.4B
Sales/Maturities of Investments	$1.9B
Other Investing Activities	$12M
NET CASH FROM INVESTING	-$495M
Net Debt Issuance	-$105M
Common Stock Repurchased	-$106M
Common Dividends Paid	-$80M
Other Financing Activities	-$10M
NET CASH FROM FINANCING	-$301M
FREE CASH FLOW	$722M
Net Change in Cash	-$56M

Balance Sheet

Item	Amount
Cash & Equivalents	$283M
Short-Term Investments	$7.3B
Net Receivables	$4.0B
Inventory	$0
Other Current Assets	-$11.7B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$0
Goodwill	$185M
Intangible Assets	$0
Long-Term Investments	$7.9B
Tax Assets	$0
Other Non-Current Assets	-$8.1B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$14.2B
Account Payables	$252M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$252M
TOTAL CURRENT LIABILITIES	$728M
Long-Term Debt	$786M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$9.8B
TOTAL NON-CURRENT LIABILITIES	$10.6B
TOTAL LIABILITIES	$11.4B
Common Stock	$600.0K
Additional Paid-In Capital	$1.8B
Retained Earnings	$1.9B
Treasury Stock	-$928M
Accum. Other Comp. Income	$63M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$2.9B
Minority Interest	$0
TOTAL EQUITY	$2.9B
TOTAL LIABILITIES & EQUITY	$14.2B
Total Debt	$786M
Net Debt	$504M