THG Q2 2021 Earnings Report — The Hanover Insurance Group, Inc. Revenue & Financial Results | Market Cap Arena

The Hanover Insurance Group, Inc.THG

Q2 2021 Earnings

Reported July 28, 2021

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2021	Q1 2021	Q2 2020	QoQ Change	YoY Change
Revenue	$1.3B	$1.3B	$1.2B	2.0%	6.8%
Op. Income	$160M	$114M	$143M	40.1%	11.7%
Gross Margin	24.4%	20.3%	22.5%	4.0pp	1.9pp
Net Margin	9.8%	7.2%	9.4%	2.6pp	0.4pp
EPS (Diluted)	$3.52	$2.51	$3.01	40.2%	16.9%
Free Cash Flow	$166M	$140M	$185M	18.9%	-10.1%

Revenue Flow

Item	Amount
REVENUE	$1.3B
Cost of Revenue	$989M
GROSS PROFIT	$319M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$159M
Operating Expenses	$159M
Cost & Expenses	$1.1B
OPERATING INCOME	$160M
Interest Income	$0
Interest Expense	$9M
Other Income/Expenses	$0
INCOME BEFORE TAX	$160M
Income Tax Expense	$30M
Net Income from Continuing Ops	$130M
Net Income from Discontinued Ops	-$1M
Other Adjustments	$0
NET INCOME	$129M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$129M
D&A	$4M
EBIT	$168M
EBITDA	$173M
EPS	$4
EPS Diluted	$4

Income Statement

Item	Amount
REVENUE	$1.3B
Cost of Revenue	$989M
GROSS PROFIT	$319M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$159M
Operating Expenses	$159M
Cost & Expenses	$1.1B
OPERATING INCOME	$160M
Interest Income	$0
Interest Expense	$9M
Other Income/Expenses	$0
INCOME BEFORE TAX	$160M
Income Tax Expense	$30M
Net Income from Continuing Ops	$130M
Net Income from Discontinued Ops	-$1M
Other Adjustments	$0
NET INCOME	$129M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$129M
D&A	$4M
EBIT	$168M
EBITDA	$173M
EPS	$4
EPS Diluted	$4

Cash Flow Statement

Item	Amount
Net Income	$129M
Depreciation & Amortization	$4M
Stock-Based Compensation	$5M
Deferred Income Tax	$0
Other Non-Cash Items	-$62M
Change in Working Capital	$91M
OPERATING CASH FLOW	$167M
Capital Expenditure	-$1M
Acquisitions (Net)	$0
Purchases of Investments	-$471M
Sales/Maturities of Investments	$390M
Other Investing Activities	$0
NET CASH FROM INVESTING	-$82M
Net Debt Issuance	$0
Common Stock Repurchased	-$73M
Common Dividends Paid	-$25M
Other Financing Activities	$8M
NET CASH FROM FINANCING	-$91M
FREE CASH FLOW	$166M
Net Change in Cash	-$6M

Balance Sheet

Item	Amount
Cash & Equivalents	$106M
Short-Term Investments	$7.6B
Net Receivables	$3.3B
Inventory	$0
Other Current Assets	-$11.0B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$0
Goodwill	$179M
Intangible Assets	$0
Long-Term Investments	$8.2B
Tax Assets	$0
Other Non-Current Assets	-$8.4B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$13.7B
Account Payables	$67M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$67M
Long-Term Debt	$781M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$83M
Other Non-Current Liabilities	$9.7B
TOTAL NON-CURRENT LIABILITIES	$10.6B
TOTAL LIABILITIES	$10.6B
Common Stock	$600.0K
Additional Paid-In Capital	$1.9B
Retained Earnings	$2.8B
Treasury Stock	-$1.8B
Accum. Other Comp. Income	$251M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$3.2B
Minority Interest	$0
TOTAL EQUITY	$3.2B
TOTAL LIABILITIES & EQUITY	$13.7B
Total Debt	$781M
Net Debt	$675M