THG Q3 2021 Earnings Report — The Hanover Insurance Group, Inc. Revenue & Financial Results | Market Cap Arena

The Hanover Insurance Group, Inc.THG

Q3 2021 Earnings

Reported October 28, 2021

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2021	Q2 2021	Q3 2020	QoQ Change	YoY Change
Revenue	$1.3B	$1.3B	$1.2B	-2.5%	2.5%
Op. Income	$43M	$160M	$149M	-73.4%	-71.4%
Gross Margin	14.7%	24.4%	23.8%	-9.7pp	-9.2pp
Net Margin	2.7%	9.8%	9.6%	-7.2pp	-6.9pp
EPS (Diluted)	$0.94	$3.52	$3.13	-73.3%	-70.0%
Free Cash Flow	$284M	$166M	$317M	71.4%	-10.2%

Revenue Flow

Item	Amount
REVENUE	$1.3B
Cost of Revenue	$1.1B
GROSS PROFIT	$187M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$144M
Operating Expenses	$144M
Cost & Expenses	$1.2B
OPERATING INCOME	$43M
Interest Income	$0
Interest Expense	$9M
Other Income/Expenses	$0
INCOME BEFORE TAX	$43M
Income Tax Expense	$8M
Net Income from Continuing Ops	$35M
Net Income from Discontinued Ops	-$800.0K
Other Adjustments	$0
NET INCOME	$34M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$34M
D&A	$4M
EBIT	$51M
EBITDA	$55M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$1.3B
Cost of Revenue	$1.1B
GROSS PROFIT	$187M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$144M
Operating Expenses	$144M
Cost & Expenses	$1.2B
OPERATING INCOME	$43M
Interest Income	$0
Interest Expense	$9M
Other Income/Expenses	$0
INCOME BEFORE TAX	$43M
Income Tax Expense	$8M
Net Income from Continuing Ops	$35M
Net Income from Discontinued Ops	-$800.0K
Other Adjustments	$0
NET INCOME	$34M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$34M
D&A	$4M
EBIT	$51M
EBITDA	$55M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$34M
Depreciation & Amortization	$4M
Stock-Based Compensation	$6M
Deferred Income Tax	-$2M
Other Non-Cash Items	$33M
Change in Working Capital	$212M
OPERATING CASH FLOW	$286M
Capital Expenditure	-$2M
Acquisitions (Net)	$0
Purchases of Investments	-$556M
Sales/Maturities of Investments	$381M
Other Investing Activities	$0
NET CASH FROM INVESTING	-$177M
Net Debt Issuance	$0
Common Stock Repurchased	-$24M
Common Dividends Paid	-$25M
Other Financing Activities	$5M
NET CASH FROM FINANCING	-$45M
FREE CASH FLOW	$284M
Net Change in Cash	$65M

Balance Sheet

Item	Amount
Cash & Equivalents	$171M
Short-Term Investments	$7.7B
Net Receivables	$3.5B
Inventory	$0
Other Current Assets	-$11.4B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$0
Goodwill	$179M
Intangible Assets	$0
Long-Term Investments	$8.3B
Tax Assets	$0
Other Non-Current Assets	-$8.5B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$14.1B
Account Payables	$68M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$68M
Long-Term Debt	$781M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$70M
Other Non-Current Liabilities	$10.2B
TOTAL NON-CURRENT LIABILITIES	$11.0B
TOTAL LIABILITIES	$11.0B
Common Stock	$600.0K
Additional Paid-In Capital	$1.9B
Retained Earnings	$2.8B
Treasury Stock	-$1.8B
Accum. Other Comp. Income	$203M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$3.1B
Minority Interest	$0
TOTAL EQUITY	$3.1B
TOTAL LIABILITIES & EQUITY	$14.1B
Total Debt	$781M
Net Debt	$610M