Brown & Brown, Inc. on Monday announced its unaudited financial results for the third quarter of 2014.Revenues for the third quarter of 2014 under U.S. generally accepted accounting principles ("GAAP") were $421.3 million, increasing $62.0 million or 17.3% as compared to the third quarter of the prior year with organic revenues (as defined below) increasing by 2.9%. EBITDAC Margins (as defined below) were 35.1% vs. 33.7%, an increase of 140 basis points from the third quarter of the prior year. Pro-forma EBITDAC (as defined below) excluding the Wright Insurance Group, LLC ("Wright"), which was acquired in May 2014, increased by 30 basis points to 34.0%. Diluted earnings per share under GAAP were $0.47 vs. $0.39 in the third quarter of the prior year, representing a 20.5% increase.
J. Powell Brown, President and Chief Executive Officer of the Company, noted, "We are pleased with our results for the quarter, even while the middle market economy remains choppy and rate increases continue to moderate or trend down."
Total revenue for the nine months ended September 30, 2014 was $1,182.7 million, compared with total revenue for the same period of 2013 of $1,020.1 million, an increase of 15.9%. Organic revenues increased by 3.5% after adjusting for Colonial Claims' revenue related to Hurricane Sandy in 2013. Net income for the nine month period ended September 30, 2014 was $182.4 million, or $1.24 diluted earnings per share, compared with $169.9 million, or $1.16 diluted earnings per share for the same period of 2013.
In the third quarter we initiated a $50 million accelerated share repurchase program that was part of the $200 million repurchase plan approved by the Board of Directors in July of this year. This $50 million program was completed in October 2014.
During the quarter, the Company received investment grade rating status from Standard & Poor's and Moody's of BBB- and Baa3, respectively for its newly issued $500 million of 10 year senior notes with a coupon of 4.20%. Proceeds from the notes were used to repay the outstanding balance on the revolving loan facility of $475 million.
The Board of Directors has voted to increase the quarterly cash dividend rate to $0.11 per share, a 10% increase from the current rate of $0.10 per share, with the first payment at the new dividend rate to be made on November 12, 2014, to shareholders of record on October 31, 2014. This is the twenty-first consecutive year of dividend growth for the Company.