National Financial Partners Corp
National Financial Partners — Q4 2012 Earnings Presentation
19 slides from National Financial Partners's earnings presentation, Feb 15, 2013
Slide 1: 4Q12 Earnings Presentation
Exhibit 99.1 4Q12 Earnings Presentation February 15, 2013
Slide 2: Related to Forward-Looking Statements
Related to Forward-Looking Statements Certain items in this presentation and in today’s discussion, including matters relating to revenue, net income, Adjusted EBITDA, cash earnings, cash earnings per diluted share and percentages or calculations using these measures, acquisitions, capital structure
Slide 3: Related to Non-GAAP Financial Information
Related to Non-GAAP Financial Information The Company analyzes its performance using historical and forward-looking non-GAAP financial measures called cash earnings, cash earnings per diluted share, Adjusted EBITDA, and percentages or calculations using these measures. The Company believes these non
Slide 4: Reconciliation: Net Income to Cash Earnings
Reconciliation: Net Income to Cash Earnings RECONCILIATION OF NET INCOME TO CASH EARNINGS (Unaudited-in thousands, except per share amounts) Three Months Ended December 31, 2012 2011 GAAP net income $ 19,403 $ 11,245 Amortization of intangibles 8,550 8,271 Depreciation 3,107 3,313 Impairment of good
Slide 5: Reconciliation: Net Income to Adjusted EBITDA
Reconciliation: Net Income to Adjusted EBITDA Corporate Individual Advisor (in thousands) Client Group Client Group Services Group Consolidated For the twelve months ended December 31, 2012 GAAP net income $ 29,938 Income tax expense 5,457 Interest income (2,253) Interest expense 16,572 Gain on earl
Slide 6: Jessica Bibliowicz
’ Benefits Insurance Wealth Management Jessica Bibliowicz
Slide 7: 2012 Highlights
2012 Highlights Revenue $1.1 billion, up 4.8% yoy Organic revenue growth +2.5% – Corporate Client Group +5.2% – Individual Client Group +2.7% – Advisor Services Group -2.3% Adjusted EBITDA $141 million, up 11.5% yoy Adjusted EBITDA margin 13.3%, up from 12.5% yoy Cash EPS $2.72 – 2012 effective tax
Slide 8: Recurring Revenue
Recurring Revenue(1) Year-over-Year Quarter-over-Quarter Recurring Revenue Recurring Revenue 65.1% 62.1% 62.3% 60.4% FY11 FY12 4Q11 4Q12 (1) Recurring revenue includes revenue from corporate and executive benefits, property & casualty, wealth management and asset-based fees and trails. 8
Slide 9: 2012 Capital Allocation
2012 Capital Allocation 2012 strategic acquisitions $97 million $80 million of acquisitions $17 million of management contract buyouts 2012 stock buyback 4Q12 Repurchased 105,000 shares at average price of $17.58 for $2 million Full year 2012 Repurchased 1,371,043 shares at average price of $14.40 f
Slide 10: Doug Hammond
’ Benefits Insurance Wealth Management Doug Hammond
Slide 11: 4Q12 Business Segments
4Q12 Business Segments 4Q12 Revenue $300.1 million 4Q12 organic revenue growth +2.7% ($ in millions) Corporate Client Group +2.7% Individual Client Group +8.3% $61.7 20.6% Advisor Services Group -5.9% $129.0 43.0% $ 109.4 36.4% Corporate Client Group Individual Client Group Advisor Services Group 11
Slide 12: 4Q12 Business Segments Components of Revenue
4Q12 Business Segments Components of Revenue Corporate Client Group Individual Client Group Advisor Services Group 49.3% 65.7% 81.0% 20.6% 43.0% 36.4% 34.8% 10.5% 34.3% 8.5% 15.9% Corporate Benefits Marketing Organization & Wholesale Asset Based Fees & Trails Life Brokerage Executive Benefits Commis
Slide 13: 2013 Capital Allocation Outlook
2013 Capital Allocation Outlook Increasingly integrated One NFP Management contract buyout multi-year plan Drives integrated operating structure Acquisition pipeline remains strong P&C focus Remain disciplined New credit facility increases financial flexibility Supports strategic growth plan Enhance
Slide 14: 2013 Segment Outlook
2013 Segment Outlook Corporate Client Group Organic revenue growth approximately 3% - 4% Adjusted EBITDA margins approximately 20% – 21% Individual Client Group Significant challenges remain in the life insurance market Low interest rate environment Remain cautious Wealth management remains solid Ad
Slide 15: Donna Blank
’ Benefits Insurance Wealth Management Donna Blank
Slide 16: 4Q12 Consolidated Financial Highlights
4Q12 Consolidated Financial Highlights (1) ($ in millions) Revenue Adjusted EBITDA & Margin $289.2 $300.1 $43.5 $40.1 $3.8 $65.6 $61.7 $2.6 $14.6 $15.8 $109.4 $107.0 $21.7 $25.0 $116.6 $129.0 4Q11 4Q12 4Q11 4Q12 Recurring Adjusted EBITDA Margin Revenue 60% 62% 4Q11 4Q12 Corporate Client Group Corpor
Slide 17: Total Compensation Ratio by Segment
Total Compensation Ratio by Segment Corporate Client Group Individual Client Group (2) 54% (1) 53% 52% 52% 52% 52% 52% 51% 51% 51% 50% 50% 49% 50% 49% 48% Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Total Compensation (Compensation Expense, Employe
Slide 18: Quarterly Operating Cash Flow
Quarterly Operating Cash Flow (1) ($ in millions) Actual 39.9 45.8 36.4 33.6 19.5 14.5 (5.9) (14.6) 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 As Adjusted 45.8 39.9 38.5 36.4 0.7(3) 4.2(2) 23.9 19.6 0.1(3) 33.6 9.4(2) (11.2) 19.5 14.5 (5.9) 3.4(2) (14.6) 1Q'11 2Q'11 3Q'11 4Q'11 Adjusted Adjuste
Slide 19: Balance Sheet Summary – New Credit Facility
Balance Sheet Summary – New Credit Facility ($ in millions) Pro Forma Capitalization Actual Capitalization As of December 31, 2012 Actual Adjustments Pro Forma Cash $88.5 $88.5 Previous Revolver due 2014 $30.0 (30.0) Previous Term Loan due 2014 $93.8 (93.8) New Revolver ($325mm) due 2018 -- (123.8)
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