|
The advantages of 40 years in the saddle as CEO of Brown & Brown, Inc. are both comforting and helpful to me in order to properly plan for the future. My father always said "Son, there is wisdom and understanding in years" -- and he was right. Looking back to 1990 offers some interesting historical comparisons:
 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2000
|
|
1990
|
|
|
|
|
|
|
|
Revenues
(in millions)
|
$
|
209.7
|
$
|
32.3
|
|
Operating
profit
(in millions)
|
$
|
62.5
|
$
|
5.8
|
|
Pre-tax
(in millions)
|
$
|
53.8
|
$
|
3.0
|
|
Number of
employees
|
|
1,614
|
|
422
|
|
Revenue per
employee
|
$
|
135,251
|
$
|
76,421
|
|
Ownership
|
|
Public
|
|
Private
|
|
Market
capitalization
|
$
|
1,003
|
$
|
Private
|
|
Locations
|
|
11 States
(prior to
Riedman)
|
|
Florida
only
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This comparison is heady wine for those of us who have “put the pedal to the metal” for the last ten years. It is also significant when viewed relative to the results of many of our peers (both large and small) for the same time period. Brown & Brown’s basic operating strategy has been the same since 1982. The year 1993 saw us combine with Poe & Associates and the advantages and additional responsibilities of public ownership (a major defining event in our history). When compared on an “original” reported basis (excluding prior year restatements of pooling-of-interests acquisitions), we have reported record net income per share growth for each of the last 32 quarters. Although we are very proud of this record, we thoroughly understand the true value of this company is its ability to grow future earnings at or above market expectations – what is past is only prologue!!!
In last year's annual report, I suggested that 2000 could be the best year in our history. Guess what? It was.  On an "original" reported basis, our revenue grew from $176,413,000 to $209,706,000, an increase of 19%; pre-tax income increased by $9,770,000, a 22% increase from $44, 208,000; and, most important, net income per share grew 17% from $.99 to $1.16.
 In September of last year, we announced our intent to combine Riedman Corporation’s insurance agency operations into Brown & Brown as of January 1, 2001. I am pleased to report that this cash-for-assets transaction was accomplished according to schedule. During our due diligence efforts, we were pleased with the quality of Riedman employees and during negotiations found the company to be as anticipated. Both John and Jim Riedman worked diligently to bring about the change in a smooth and effective manner. As we reported, in January, John Riedman was elected to the Board of Directors of Brown & Brown – we look forward to his advice and counsel. Jim Riedman will also continue with Brown & Brown as an Executive Vice President.
|
