BRP Group, Inc. (NASDAQ:BRP) Q3 2019 Earnings Conference Call - Preliminary Transcript
Dec 02, 2019 • 05:00 pm ET
(Operator Instructions)) Our first question is from (ph) Elyse Greenspan Wells Fargo . Please proceed with your question.
Hi, thank you. Good evening. My first question. I appreciate all the color on the segments. And I guess maybe just as simple as backing out some of the deals you guys called out but could you just give us the organic growth, I guess Medicare. It seems like there was no deals that flow through there. The organic growth that you saw in the segments in the quarter. And if there is anything one-off. I guess in any of the segments, on the organic basis or can we think about the 12% growth is kind of a good run rate for the fourth quarter?
Hey Elyse, this is Kris. Have a good evening. We're not going to provide guidance on a segment-by-segment basis. As far as organic growth or a separate that out. What I would note on organic growth is that 12% is the traditional organic growth number of calculated for the business and it doesn't include any of the (ph) MSR or the MGA the future business given that won't be until April 20 really Q2 of next year. But we're obviously as Trevor mentioned earlier pleased that we return to kind of overall 12% organic growth.
Okay. So you're not going to break out the segment organic, but I guess you're going forward. But I guess I'll just kind of call off any one-off items as our is that, are you guys expect to do it on a go-forward basis?
That's our think about is yes.
Okay. And then in terms of the margin, I know some of this, you would give
I mean the kind of pro forma if I'm looking at the pro forma numbers and I guess we could do it either way, it looks like your EBITDA margin expanded by about 100 basis points in the third quarter and it was about 200 basis points in the first half of the year, correct me if I'm thinking about this wrong, but was there anything I guess 100 basis points in the Q3 just that we should think about maybe the margin improvement you saw in the third quarter relative to what you guys had seen in the first half of the year because it was a little bit slower?
Sure. I think one, and I think you'll see this in Q4 as well. Obviously with the IPO. We're trying to get to the right adjustments to give a guideline but you're thinking about it correctly, kind of on a pro forma basis at 23% from a year-to-date standpoint we do note in the first half of the year. We have some seasonality. Right. And so you tend to have a little bit higher margin in those quarters given some of the seasonality that shows with higher revenue and then Q3 while seasonally the strongest for the MGA in the future business is typically not