THG FY 2017 Earnings Report — The Hanover Insurance Group, Inc. Revenue & Financial Results | Market Cap Arena

The Hanover Insurance Group, Inc.THG

FY 2017 Earnings

Reported February 27, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2017	Prior Q	FY 2016	QoQ Change	YoY Change
Revenue	$4.3B	—	$4.0B	—	7.6%
Op. Income	$293M	—	$66M	—	343.8%
Gross Margin	19.9%	—	15.5%	—	4.3pp
Net Margin	4.4%	—	3.9%	—	0.5pp
EPS (Diluted)	$4.33	—	$3.59	—	20.6%
Free Cash Flow	$686M	—	$722M	—	-5.0%

Revenue Flow

Item	Amount
REVENUE	$4.3B
Cost of Revenue	$3.4B
GROSS PROFIT	$848M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$555M
Operating Expenses	$555M
Cost & Expenses	$4.0B
OPERATING INCOME	$293M
Interest Income	$0
Interest Expense	$45M
Other Income/Expenses	$0
INCOME BEFORE TAX	$293M
Income Tax Expense	$77M
Net Income from Continuing Ops	$216M
Net Income from Discontinued Ops	-$30M
Other Adjustments	$0
NET INCOME	$186M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$186M
D&A	$30M
EBIT	$338M
EBITDA	$368M
EPS	$4
EPS Diluted	$4

Income Statement

Item	Amount
REVENUE	$4.3B
Cost of Revenue	$3.4B
GROSS PROFIT	$848M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$555M
Operating Expenses	$555M
Cost & Expenses	$4.0B
OPERATING INCOME	$293M
Interest Income	$0
Interest Expense	$45M
Other Income/Expenses	$0
INCOME BEFORE TAX	$293M
Income Tax Expense	$77M
Net Income from Continuing Ops	$216M
Net Income from Discontinued Ops	-$30M
Other Adjustments	$0
NET INCOME	$186M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$186M
D&A	$30M
EBIT	$338M
EBITDA	$368M
EPS	$4
EPS Diluted	$4

Cash Flow Statement

Item	Amount
Net Income	$186M
Depreciation & Amortization	$30M
Stock-Based Compensation	$12M
Deferred Income Tax	$40M
Other Non-Cash Items	-$37M
Change in Working Capital	$474M
OPERATING CASH FLOW	$705M
Capital Expenditure	-$19M
Acquisitions (Net)	$0
Purchases of Investments	-$1.9B
Sales/Maturities of Investments	$1.4B
Other Investing Activities	-$10M
NET CASH FROM INVESTING	-$506M
Net Debt Issuance	$0
Common Stock Repurchased	-$37M
Common Dividends Paid	-$87M
Other Financing Activities	$12M
NET CASH FROM FINANCING	-$112M
FREE CASH FLOW	$686M
Net Change in Cash	$151M

Balance Sheet

Item	Amount
Cash & Equivalents	$376M
Short-Term Investments	$5.7B
Net Receivables	$2.7B
Inventory	$0
Other Current Assets	-$8.8B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$0
Goodwill	$193M
Intangible Assets	$0
Long-Term Investments	$6.3B
Tax Assets	$0
Other Non-Current Assets	-$6.5B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$15.5B
Account Payables	$52M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$345M
Long-Term Debt	$787M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$11.7B
TOTAL NON-CURRENT LIABILITIES	$12.5B
TOTAL LIABILITIES	$12.5B
Common Stock	$600.0K
Additional Paid-In Capital	$1.9B
Retained Earnings	$2.0B
Treasury Stock	-$943M
Accum. Other Comp. Income	$108M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$3.0B
Minority Interest	$0
TOTAL EQUITY	$3.0B
TOTAL LIABILITIES & EQUITY	$15.5B
Total Debt	$787M
Net Debt	$411M