BRP Group, Inc. (NASDAQ:BRP) Q3 2023 Earnings Conference Call November 7, 2023 5:00 PM ET

Company Participants

Bonnie Bishop - Executive Director, IR

Trevor Baldwin - CEO

Bradford Hale - CFO

Chris Wiebeck - Chief Strategy Officer

Conference Call Participants

Greg Peters - Raymond James

Elyse Greenspan - Wells Fargo

Yaron Kinar - Jefferies

Josh Shanker - Bank of America

Pablo Singzon - JPMorgan

Meyer Shields - KBW

Operator

Greetings and welcome to BRP Group, Inc. Third Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce Bonnie Bishop, Executive Director, Investor Relations. Thank you. You may begin.

Bonnie Bishop

Thank you, operator. Welcome to the BRP Group’s Third Quarter 2023 Earnings Call. Today's call is being recorded. Third quarter financial results, supplemental information, and Form 10-Q were issued earlier this afternoon and are available on the company's website at ir.baldwinriskpartners.com.

Please note that remarks made today may include forward-looking statements subject to various assumptions, risks, and uncertainties. The company's actual results may differ materially from those contemplated by such statements.

For a more detailed discussion, please refer to the note regarding forward-looking statements in the company's earnings release and to our most recent Form 10-Q, both of which are available on the BRP website.

During the call today, the company may also discuss certain non-GAAP financial measures. For a more detailed discussion of these non-GAAP financial measures and historical reconciliation to the most closely comparable GAAP measures, please refer to the company's earnings release and supplemental information, both of which have been posted on the company's website at ir.baldwinriskpartners.com.

I will now turn the call over to Trevor Baldwin, CEO of BRP Group.

Trevor Baldwin

Good afternoon, and thank you for joining our third quarter earnings call. I'm joined this afternoon by Brad Hale, our Chief Financial Officer; Kris Wiebeck, our Chief Strategy Officer; and Bonnie Bishop, Executive Director of Investor Relations.

The robust underlying health, momentum and operating leverage in our business was evident in this quarter's results as we generated, organic growth of 19% and approximately 480 basis points of margin accretion versus the third quarter of 2022 on the back of continued execution, growing contribution from prior investments and ongoing efforts to drive greater free cash flow from the business.

Adjusted diluted earnings per share was $0.29, up 61% from the third quarter of 2022. Adjusted EBITDA grew 53% to $64 million resulting in an adjusted EBITDA margin of 21% for the quarter and free cash flow from operations grew by 29% to $76 million for the year-to-date period, despite a $36 million increase in cash paid for interest year-over-year.