THG Q4 2020 Earnings Report — The Hanover Insurance Group, Inc. Revenue & Financial Results | Market Cap Arena

The Hanover Insurance Group, Inc.THG

Q4 2020 Earnings

Reported February 23, 2021

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q4 2020	Q3 2020	Q4 2019	QoQ Change	YoY Change
Revenue	$1.3B	$1.2B	$1.3B	4.3%	3.1%
Op. Income	$207M	$149M	$133M	39.3%	55.2%
Gross Margin	28.0%	23.8%	22.3%	4.1pp	5.6pp
Net Margin	12.7%	9.6%	8.7%	3.1pp	4.0pp
EPS (Diluted)	$4.43	$3.13	$2.76	41.5%	60.5%
Free Cash Flow	$158M	$317M	$176M	-50.0%	-10.1%

Revenue Flow

Item	Amount
REVENUE	$1.3B
Cost of Revenue	$934M
GROSS PROFIT	$363M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$156M
Operating Expenses	$156M
Cost & Expenses	$1.1B
OPERATING INCOME	$207M
Interest Income	$0
Interest Expense	$9M
Other Income/Expenses	$0
INCOME BEFORE TAX	$207M
Income Tax Expense	$41M
Net Income from Continuing Ops	$166M
Net Income from Discontinued Ops	-$1M
Other Adjustments	$0
NET INCOME	$165M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$165M
D&A	$4M
EBIT	$216M
EBITDA	$220M
EPS	$4
EPS Diluted	$4

Income Statement

Item	Amount
REVENUE	$1.3B
Cost of Revenue	$934M
GROSS PROFIT	$363M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$156M
Operating Expenses	$156M
Cost & Expenses	$1.1B
OPERATING INCOME	$207M
Interest Income	$0
Interest Expense	$9M
Other Income/Expenses	$0
INCOME BEFORE TAX	$207M
Income Tax Expense	$41M
Net Income from Continuing Ops	$166M
Net Income from Discontinued Ops	-$1M
Other Adjustments	$0
NET INCOME	$165M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$165M
D&A	$4M
EBIT	$216M
EBITDA	$220M
EPS	$4
EPS Diluted	$4

Cash Flow Statement

Item	Amount
Net Income	$165M
Depreciation & Amortization	$4M
Stock-Based Compensation	$6M
Deferred Income Tax	$5M
Other Non-Cash Items	-$87M
Change in Working Capital	$69M
OPERATING CASH FLOW	$161M
Capital Expenditure	-$3M
Acquisitions (Net)	$0
Purchases of Investments	-$502M
Sales/Maturities of Investments	$376M
Other Investing Activities	$0
NET CASH FROM INVESTING	-$129M
Net Debt Issuance	$0
Common Stock Repurchased	-$119M
Common Dividends Paid	-$26M
Other Financing Activities	$600.0K
NET CASH FROM FINANCING	-$143M
FREE CASH FLOW	$158M
Net Change in Cash	-$111M

Balance Sheet

Item	Amount
Cash & Equivalents	$121M
Short-Term Investments	$7.5B
Net Receivables	$3.2B
Inventory	$0
Other Current Assets	-$10.8B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$0
Goodwill	$179M
Intangible Assets	$0
Long-Term Investments	$8.1B
Tax Assets	$0
Other Non-Current Assets	-$8.2B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$13.4B
Account Payables	$48M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$736M
TOTAL CURRENT LIABILITIES	$0
Long-Term Debt	$781M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$97M
Other Non-Current Liabilities	-$878M
TOTAL NON-CURRENT LIABILITIES	$0
TOTAL LIABILITIES	$10.2B
Common Stock	$600.0K
Additional Paid-In Capital	$1.9B
Retained Earnings	$2.7B
Treasury Stock	-$1.7B
Accum. Other Comp. Income	$373M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$3.2B
Minority Interest	$0
TOTAL EQUITY	$3.2B
TOTAL LIABILITIES & EQUITY	$13.4B
Total Debt	$781M
Net Debt	$660M