Hanover Insurance Group (THG) Q1 FY2024 earnings: revenue $1.6 billion, up 7.4% on the year

Hanover Insurance Group, Inc. (THG) reported revenue of $1.6 billion for Q1 FY2024, the quarter ended 31 March 2024, up 7.4% on the same quarter a year earlier. Net income was $116 million, and diluted earnings per share $3.18. The figures are the company's own, from the 10-Q it filed with the SEC on 2 May 2024.

Revenue$1.6 billionup 7.4%

Net income$116 million

Diluted EPS$3.18

QuarterQ1 FY2024ended 31 March 2024

The quarter, against the one before and a year earlier

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Revenue	1,551	1,529	n/a	n/a
Operating income	150	158	n/a	n/a
Operating margin	9.7%	10.3%	n/a
Interest expense	8.5	8.5	n/a	n/a
Pre-tax income	145	150	n/a	n/a
Income tax	29.8	42.9	n/a	n/a
Effective tax rate	20.5%	28.6%	n/a
Net income	116	108	n/a	n/a
Net margin	7.4%	7.1%	n/a
Diluted EPS	$3.18	$2.98	n/a	n/a

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Operating cash flow	58.7	92.7	n/a	n/a
Capital expenditure	2.6	2.2	n/a	n/a
Free cash flow	56.1	90.5	n/a	n/a
Free cash flow margin	3.6%	5.9%	n/a
Cash from investing	-74.8	-42.1	n/a	n/a
Cash from financing	-35.4	-29.0	n/a	n/a
Depreciation and amortisation	0.8	0.8	n/a	n/a
Share-based compensation	6.7	7.2	n/a	n/a
Buybacks	n/a	0.0	n/a	n/a
Dividends paid	30.5	30.3	n/a	n/a
Diluted shares, weighted	36m	36m	n/a	n/a
Shares outstanding at period end	36m	36m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Shareholders' equity	2,523	2,466	n/a	n/a
Debt	783	783	n/a	n/a
Other liabilities	11,288	11,364	n/a	n/a
Total liabilities and equity	14,594	14,613	n/a	n/a
Goodwill	179	179	n/a	n/a
Intangible assets	n/a	15.5	n/a	n/a
Securities held for sale or to maturity	8,015	7,985	n/a	n/a
Cash and equivalents	265	316	n/a	n/a
Other assets	6,135	6,117	n/a	n/a
Total assets	14,594	14,613	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	1,517	1,529	1,551	1,537	1,565	1,584	1,603	1,654	1,665	1,672	1,701	1,726
Operating income	13.7	158	150	95.4	151	254	186	210	248	289	250	252
Operating margin	1%	10%	10%	6%	10%	16%	12%	13%	15%	17%	15%	15%
Interest expense	8.5	8.5	8.5	8.6	8.5	8.5	8.5	8.6	11.6	14.5	10.8	10.1
Pre-tax income	-0.9	150	145	51.3	130	212	160	199	227	258	237	245
Tax rate	n/a	29%	21%	21%	21%	21%	20%	21%	21%	24%	21%	22%
Net income	8.6	108	116	40.5	102	168	128	157	179	198	187	192
Net margin	1%	7%	7%	3%	7%	11%	8%	9%	11%	12%	11%	11%
Diluted EPS	$0.24	$2.98	$3.18	$1.12	$2.80	$4.59	$3.50	$4.30	$4.90	$5.47	$5.20	$5.38
Operating cash flow	225	92.7	58.7	140	395	214	38.9	207	554	378	119	212
Capital expenditure	2.9	2.2	2.6	2.2	2.4	3.0	1.8	1.7	3.0	1.2	3.5	2.9
Free cash flow	222	90.5	56.1	137	392	210	37.1	205	551	377	115	209
Buybacks	0.0	0.0	n/a	n/a	0.0	n/a	11.0	27.6	36.0	54.6	86.9	55.0
Dividends paid	29.0	30.3	30.5	30.6	30.6	32.4	32.4	32.3	32.2	33.7	33.5	33.1
Shares outstanding	36m	36m	36m	36m	36m	36m	36m	36m	36m	35m	35m	35m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 31 March 2024, filed 2 May 2024, accession 0000950170-24-052129: the filing on EDGAR. All of Hanover Insurance Group, Inc.'s filings: EDGAR company page.

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