THG Q3 2018 Earnings Report — The Hanover Insurance Group, Inc. Revenue & Financial Results | Market Cap Arena

The Hanover Insurance Group, Inc.THG

Q3 2018 Earnings

Reported November 1, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2018	Q2 2018	Q3 2017	QoQ Change	YoY Change
Revenue	$1.2B	$1.1B	$1.1B	2.9%	7.4%
Op. Income	$123M	$100M	$83M	23.2%	48.4%
Gross Margin	22.8%	21.2%	20.1%	1.6pp	2.7pp
Net Margin	8.6%	8.8%	1.0%	-0.2pp	7.6pp
EPS (Diluted)	$2.33	$2.31	$0.26	0.9%	796.2%
Free Cash Flow	$282M	$144M	$280M	96.3%	0.7%

Revenue Flow

Item	Amount
REVENUE	$1.2B
Cost of Revenue	$901M
GROSS PROFIT	$266M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$143M
Operating Expenses	$143M
Cost & Expenses	$1.0B
OPERATING INCOME	$123M
Interest Income	$0
Interest Expense	$11M
Other Income/Expenses	$0
INCOME BEFORE TAX	$123M
Income Tax Expense	$19M
Net Income from Continuing Ops	$104M
Net Income from Discontinued Ops	-$4M
Other Adjustments	$0
NET INCOME	$100M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$100M
D&A	$7M
EBIT	$134M
EBITDA	$141M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$1.2B
Cost of Revenue	$901M
GROSS PROFIT	$266M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$143M
Operating Expenses	$143M
Cost & Expenses	$1.0B
OPERATING INCOME	$123M
Interest Income	$0
Interest Expense	$11M
Other Income/Expenses	$0
INCOME BEFORE TAX	$123M
Income Tax Expense	$19M
Net Income from Continuing Ops	$104M
Net Income from Discontinued Ops	-$4M
Other Adjustments	$0
NET INCOME	$100M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$100M
D&A	$7M
EBIT	$134M
EBITDA	$141M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$100M
Depreciation & Amortization	$7M
Stock-Based Compensation	$5M
Deferred Income Tax	$10M
Other Non-Cash Items	$11M
Change in Working Capital	$155M
OPERATING CASH FLOW	$287M
Capital Expenditure	-$5M
Acquisitions (Net)	$0
Purchases of Investments	-$486M
Sales/Maturities of Investments	$259M
Other Investing Activities	$0
NET CASH FROM INVESTING	-$231M
Net Debt Issuance	-$12M
Common Stock Repurchased	-$19M
Common Dividends Paid	-$23M
Other Financing Activities	$6M
NET CASH FROM FINANCING	-$48M
FREE CASH FLOW	$282M
Net Change in Cash	-$20M

Balance Sheet

Item	Amount
Cash & Equivalents	$118M
Short-Term Investments	$6.1B
Net Receivables	$2.8B
Inventory	$0
Other Current Assets	-$9.0B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$0
Goodwill	$179M
Intangible Assets	$0
Long-Term Investments	$6.7B
Tax Assets	$0
Other Non-Current Assets	-$6.8B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$15.6B
Account Payables	$46M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$46M
Long-Term Debt	$778M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$11.9B
TOTAL NON-CURRENT LIABILITIES	$12.6B
TOTAL LIABILITIES	$12.6B
Common Stock	$600.0K
Additional Paid-In Capital	$1.9B
Retained Earnings	$2.3B
Treasury Stock	-$974M
Accum. Other Comp. Income	-$191M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$3.0B
Minority Interest	$0
TOTAL EQUITY	$3.0B
TOTAL LIABILITIES & EQUITY	$15.6B
Total Debt	$778M
Net Debt	$660M