On August 1, 2024, Ryan Specialty Holdings Inc (RYAN, Financial) released its 8-K filing reporting robust financial results for the second quarter of 2024. Ryan Specialty Holdings Inc is a service provider of specialty products and solutions for insurance brokers, agents, and carriers. It provides distribution, underwriting, product development, administration, and risk management services by acting as a wholesale broker and a managing underwriter.
Performance Highlights
Ryan Specialty Holdings Inc (RYAN, Financial) reported total revenue of $695.4 million for Q2 2024, an 18.8% increase from $585.1 million in the same period last year. This figure surpassed the analyst estimate of $693.10 million. The company also achieved a net income of $118.0 million, or $0.37 per diluted share, meeting the analyst estimate of $0.37 per share.
Key Financial Metrics
Ryan Specialty Holdings Inc (RYAN, Financial) demonstrated significant growth across several key financial metrics:
- Organic Revenue Growth Rate: 14.2% year-over-year
- Adjusted EBITDAC: $247.7 million, a 27.6% increase from $194.2 million in the prior-year period
- Adjusted Net Income: $160.6 million, a 29.8% increase from $123.7 million in the prior-year period
- Adjusted Diluted Earnings per Share: $0.58, a 28.9% increase from $0.45 in the prior-year period
Income Statement and Balance Sheet Overview
The company's total operating expenses for Q2 2024 were $531.1 million, a 14.9% increase compared to the prior-year period. This increase was primarily due to higher compensation and benefits expenses resulting from revenue growth and restructuring-related expenses associated with the ACCELERATE 2025 program.
Net income for the second quarter increased by 40.8% to $118.0 million, compared to $83.8 million in the prior-year period. The adjusted EBITDAC margin for the quarter was 35.6%, up from 33.2% in the prior-year period.
Commentary and Future Outlook
"We delivered another fantastic quarter for our shareholders, once again driven by broad-based double-digit organic growth as well as significant margin expansion," said Patrick G. Ryan, Founder, Chairman, and Chief Executive Officer of Ryan Specialty. "We generated 14.2% organic revenue growth and expanded Adjusted EBITDAC margin by 240 basis points year-over-year while growing Adjusted EPS by nearly 30%."
Liquidity and Financial Condition
As of June 30, 2024, Ryan Specialty Holdings Inc (RYAN, Financial) had cash and cash equivalents of $612.4 million and outstanding debt principal of $2.0 billion. The company also upsized its revolving credit facility to $1.4 billion from $0.6 billion on July 30, 2024.
Dividend Announcement
On August 1, 2024, the company's board of directors declared a regular quarterly dividend of $0.11 per share on the outstanding Class A common stock, payable on August 27, 2024, to stockholders of record as of August 13, 2024.
Conclusion
Ryan Specialty Holdings Inc (RYAN, Financial) has demonstrated strong financial performance in Q2 2024, exceeding analyst estimates and showing significant growth across key financial metrics. The company's robust revenue growth, improved margins, and strategic acquisitions position it well for continued success in the specialty insurance market.
Explore the complete 8-K earnings release (here) from Ryan Specialty Holdings Inc for further details.
