THG Q2 2022 Earnings Report — The Hanover Insurance Group, Inc. Revenue & Financial Results | Market Cap Arena

The Hanover Insurance Group, Inc.THG

Q2 2022 Earnings

Reported August 3, 2022

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2022	Q1 2022	Q2 2021	QoQ Change	YoY Change
Revenue	$1.3B	$1.3B	$1.3B	-2.8%	-1.1%
Op. Income	$28M	$130M	$160M	-78.3%	-82.4%
Gross Margin	13.8%	21.1%	24.4%	-7.3pp	-10.6pp
Net Margin	1.8%	7.9%	9.8%	-6.1pp	-8.1pp
EPS (Diluted)	$0.63	$2.90	$3.52	-78.3%	-82.1%
Free Cash Flow	$4M	$195M	$166M	-98.2%	-97.8%

Revenue Flow

Item	Amount
REVENUE	$1.3B
Cost of Revenue	$1.1B
GROSS PROFIT	$178M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$150M
Operating Expenses	$150M
Cost & Expenses	$1.3B
OPERATING INCOME	$28M
Interest Income	$0
Interest Expense	$9M
Other Income/Expenses	$0
INCOME BEFORE TAX	$28M
Income Tax Expense	$5M
Net Income from Continuing Ops	$23M
Net Income from Discontinued Ops	-$100.0K
Other Adjustments	$0
NET INCOME	$23M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$23M
D&A	$3M
EBIT	$37M
EBITDA	$40M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$1.3B
Cost of Revenue	$1.1B
GROSS PROFIT	$178M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$150M
Operating Expenses	$150M
Cost & Expenses	$1.3B
OPERATING INCOME	$28M
Interest Income	$0
Interest Expense	$9M
Other Income/Expenses	$0
INCOME BEFORE TAX	$28M
Income Tax Expense	$5M
Net Income from Continuing Ops	$23M
Net Income from Discontinued Ops	-$100.0K
Other Adjustments	$0
NET INCOME	$23M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$23M
D&A	$3M
EBIT	$37M
EBITDA	$40M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$23M
Depreciation & Amortization	$3M
Stock-Based Compensation	$7M
Deferred Income Tax	-$24M
Other Non-Cash Items	-$108M
Change in Working Capital	$107M
OPERATING CASH FLOW	$9M
Capital Expenditure	-$5M
Acquisitions (Net)	$0
Purchases of Investments	-$636M
Sales/Maturities of Investments	$536M
Other Investing Activities	$0
NET CASH FROM INVESTING	-$105M
Net Debt Issuance	$0
Common Stock Repurchased	-$4M
Common Dividends Paid	-$27M
Other Financing Activities	$2M
NET CASH FROM FINANCING	-$29M
FREE CASH FLOW	$4M
Net Change in Cash	-$126M

Balance Sheet

Item	Amount
Cash & Equivalents	$146M
Short-Term Investments	$7.2B
Net Receivables	$3.5B
Inventory	$0
Other Current Assets	-$10.9B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$0
Goodwill	$179M
Intangible Assets	$0
Long-Term Investments	$7.7B
Tax Assets	$0
Other Non-Current Assets	-$7.9B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$13.6B
Account Payables	$77M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$716M
TOTAL CURRENT LIABILITIES	$0
Long-Term Debt	$782M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	-$782M
TOTAL NON-CURRENT LIABILITIES	$0
TOTAL LIABILITIES	$11.0B
Common Stock	$600.0K
Additional Paid-In Capital	$1.9B
Retained Earnings	$3.1B
Treasury Stock	-$1.9B
Accum. Other Comp. Income	-$520M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$2.6B
Minority Interest	$0
TOTAL EQUITY	$2.6B
TOTAL LIABILITIES & EQUITY	$13.6B
Total Debt	$782M
Net Debt	$636M