THG Q2 2019 Earnings Report — The Hanover Insurance Group, Inc. Revenue & Financial Results | Market Cap Arena

The Hanover Insurance Group, Inc.THG

Q2 2019 Earnings

Reported August 1, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2019	Q1 2019	Q2 2018	QoQ Change	YoY Change
Revenue	$1.2B	$1.2B	$1.1B	-1.7%	5.8%
Op. Income	$110M	$149M	$100M	-26.1%	10.2%
Gross Margin	20.9%	23.8%	21.2%	-2.9pp	-0.3pp
Net Margin	6.2%	10.0%	8.8%	-3.9pp	-2.6pp
EPS (Diluted)	$1.79	$2.97	$2.31	-39.7%	-22.5%
Free Cash Flow	$111M	$33M	$144M	232.7%	-22.9%

Revenue Flow

Item	Amount
REVENUE	$1.2B
Cost of Revenue	$948M
GROSS PROFIT	$250M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$141M
Operating Expenses	$141M
Cost & Expenses	$1.1B
OPERATING INCOME	$110M
Interest Income	$0
Interest Expense	$9M
Other Income/Expenses	$0
INCOME BEFORE TAX	$110M
Income Tax Expense	$25M
Net Income from Continuing Ops	$85M
Net Income from Discontinued Ops	-$11M
Other Adjustments	$0
NET INCOME	$74M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$74M
D&A	$5M
EBIT	$119M
EBITDA	$124M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$1.2B
Cost of Revenue	$948M
GROSS PROFIT	$250M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$141M
Operating Expenses	$141M
Cost & Expenses	$1.1B
OPERATING INCOME	$110M
Interest Income	$0
Interest Expense	$9M
Other Income/Expenses	$0
INCOME BEFORE TAX	$110M
Income Tax Expense	$25M
Net Income from Continuing Ops	$85M
Net Income from Discontinued Ops	-$11M
Other Adjustments	$0
NET INCOME	$74M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$74M
D&A	$5M
EBIT	$119M
EBITDA	$124M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$74M
Depreciation & Amortization	$5M
Stock-Based Compensation	$4M
Deferred Income Tax	-$1M
Other Non-Cash Items	-$20M
Change in Working Capital	$51M
OPERATING CASH FLOW	$113M
Capital Expenditure	-$3M
Acquisitions (Net)	$10M
Purchases of Investments	-$262M
Sales/Maturities of Investments	$318M
Other Investing Activities	$0
NET CASH FROM INVESTING	$64M
Net Debt Issuance	$0
Common Stock Repurchased	-$150M
Common Dividends Paid	-$25M
Other Financing Activities	$6M
NET CASH FROM FINANCING	-$169M
FREE CASH FLOW	$111M
Net Change in Cash	$11M

Balance Sheet

Item	Amount
Cash & Equivalents	$180M
Short-Term Investments	$6.6B
Net Receivables	$2.9B
Inventory	$0
Other Current Assets	-$9.7B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$0
Goodwill	$179M
Intangible Assets	$0
Long-Term Investments	$7.1B
Tax Assets	$0
Other Non-Current Assets	-$7.3B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$12.2B
Account Payables	$53M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$53M
Long-Term Debt	$653M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$29M
Other Non-Current Liabilities	$8.5B
TOTAL NON-CURRENT LIABILITIES	$9.2B
TOTAL LIABILITIES	$9.2B
Common Stock	$600.0K
Additional Paid-In Capital	$1.8B
Retained Earnings	$2.3B
Treasury Stock	-$1.3B
Accum. Other Comp. Income	$108M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$2.9B
Minority Interest	$0
TOTAL EQUITY	$2.9B
TOTAL LIABILITIES & EQUITY	$12.2B
Total Debt	$653M
Net Debt	$473M