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Ryan Specialty Group Reports Second Quarter 2021 Results

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Topics: Financial Results

Total Revenue grew 58.3% year-over-year to $390.0 million...

 

 - Organic Revenue Growth Rate of 28.5% year-over-year -

- Net Income grew 27.1% year-over-year to $63.4 million -

- Adjusted EBITDAC increased 79.4% year-over-year to $140.5 million -

- Adjusted Net Income grew 73.5% year-over-year to $92.3 million -

- Completed Initial Public Offering in July 2021 -

- Provides full year 2021 outlook for Organic Revenue Growth Rate and Adjusted EBITDAC Margin 

Ryan Specialty Group Holdings, Inc. has announced results for the second quarter ended June 30, 2021. The Company completed its initial public offering on July 26, 2021, and the results detailed below reflect the pre-IPO organizational structure.

Second Quarter 2021 Highlights

  • Total Revenue grew 58.3% year-over-year to $390.0 million, compared to $246.3 million in the prior-year period
  • Organic Revenue Growth Rate* was 28.5% for the quarter, compared to 18.5% for the same quarter last year
  • Net Income increased by 27.1% to $63.4 million, compared to $49.9 million in the prior-year period
  • Net Income Margin was 16.3%, compared to 20.3% in the prior-year period
  • Adjusted EBITDAC* increased 79.4% to $140.5 million, compared to $78.3 million in the prior-year period
  • Adjusted EBITDAC Margin* rose 420 basis points year-over-year to 36.0%
  • Adjusted Net Income* increased 73.5% to $92.3 million, compared to $53.2 million in the prior-year period

“We had an outstanding second quarter,” said Patrick G. Ryan, Founder, Chairman and Chief Executive Officer of Ryan Specialty Group. “We made significant progress in the quarter in all facets of our business, and this momentum continued into the third quarter with the successful completion of our IPO, a major milestone in the continuing evolution of our organization. During the second quarter, we further advanced the integration of All Risks throughout our organization and the impact of that acquisition continues to resonate in the marketplace. We generated another quarter of strong double-digit organic revenue growth, fueled by our scaled distribution platform and expertise, both of which set us apart from our peers. We also continue to benefit from retail broker consolidation, further consolidation of wholesale broker panels, and a rapidly growing E&S market. We remain excited about the numerous opportunities we see for continued growth and investment in our capabilities, our technology and our talent in order to drive long-term shareholder value creation.”

Summary of Second Quarter Results

 Three months ended      
 June 30,  Change 
(in thousands, except percentages)2021  2020  $ % 
GAAP financial measures          
Total revenue$ 390,012  $ 246,324  $ 143,688 58.3%
Compensation and benefits236,801  156,811  79,990 51.0 
General and administrative30,685  21,868  8,817 40.3 
Total operating expenses297,750  188,648  109,102 57.8 
Operating income92,262  57,676  34,586 60.0 
Net income63,407  49,887  13,520 27.1 
Net income attributable to members63,407  49,941  13,466 27.0 
Compensation and Benefits Expense Ratio60.7% 63.7%     
General and Administrative Expense Ratio7.9% 8.9%     
Net Income Margin16.3% 20.3%     
Non-GAAP financial measures*          
Organic Revenue Growth Rate28.5% 18.5%     
Adjusted Compensation and Benefits Expense$ 220,495  $ 150,412  $ 70,083 46.6%
Adjusted Compensation and Benefits Expense Ratio56.5% 61.1%     
Adjusted General and Administrative Expense$ 29,030  $ 17,581  $ 11,449 65.1%
Adjusted General and Administrative Expense Ratio7.4% 7.1%     
Adjusted EBITDAC$ 140,487  $ 78,331  $ 62,156 79.4%
Adjusted EBITDAC Margin36.0% 31.8%     
Adjusted Net Income$ 92,275  $ 53,181  $ 39,094 73.5%
Adjusted Net Income Margin23.7% 21.6%     
*For a definition and a reconciliation of Organic Revenue Growth Rate, Adjusted Compensation and Benefits Expense, Adjusted Compensation and Benefits Ratio, Adjusted General and Administrative Expense, Adjusted General and Administrative Expense Ratio, Adjusted EBITDAC, Adjusted EBITDAC Margin, Adjusted Net Income, and Adjusted Net Income Margin, to the most comparable GAAP measure, see “Non-GAAP Financial Measures and Key Performance Indicators” below.

To view full results, click here.

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