Welcome to the 2012 annual shareholders meeting of Brown & Brown, Inc. We have a number of introductions to make relative to the directors and some other important people. I'd like to start off by saying that yesterday afternoon, the board convened and reinstated Powell as the President and Chief Executive Officer. Congratulations.
Thank you very much. I just wanted to make a couple comments. Number one, as you know, I was out on a medical leave, and it was something that was important, and I feel great to be back and very excited to be part of the Brown & Brown, Inc. team again. I would also tell you that I can't even express to you how proud I am of our teammates all over the country that were able to grow our business organically in the first quarter. I've asked Hyatt to run this meeting as he has in the past, and I will not be as involved because I have not been involved for the last 90 days, I would leave you with the fact that I will be very involved for the coming. I look forward to talking to you again soon. Have a great day.
Thanks, Powell. It's kind of interesting. I noticed the script was done a little before the board meeting, and it says that I'm the acting. I'm no longer acting, I'm just the chairman, and that's non-executive chairman, which means I can go back to doing things that are fun, like mergers and acquisitions and mentoring people and trying to bring in new accounts. This is a great company to be a part of, and we're very proud of all of our teammates. I'd like to introduce now our directors, and we're very proud of our directors, and I'd like for them to remain standing, and we'll give them a round of applause. First of all, I'm Hyatt Brown. Secondly is Sam Bell, who is a shareholder in the firm of Pennington, Moore, Wilkinson, Bell & Dunbar in Tallahassee.
Hugh Brown, who is founder and former CEO of BAMSI, Inc., an engineering and technical services company. Powell Brown, who has previously been introduced. Bradley Currey, Jr., who is the former Chairman and CEO of RockTenn Company, a paper manufacturer located in Atlanta. Theodore J. Hoepner, retired former Vice Chairman of the SunTrust holding company. Timothy R. M. Main, who is the Senior Managing Director of Evercore Partners in New York City. Toni Jennings, who is Chairman of Jack Jennings & Sons, and as you know, is retired Lieutenant Governor of Florida, and also retired President of the Florida Senate. I think, Toni, weren't you the first female President of the Florida Senate?
Oh, okay. Well, close enough. We have Wendell Reilly, chairman of Behrman Capital, managing partner of Grapevine Partners LLC, a private equity investment firm focused on media and communications in Atlanta. We have John Riedman, who's chairman of the Riedman Corporation, who is from Rochester. John had to fight his way through the snow to get to the plane to come here on Monday. Last, but certainly not least, we have Chilton Varner, who is a partner in the law firm of King & Spalding in Atlanta. Let's give him a round of applause. We have two other people that I would like to introduce. They're not directors, but they're very close to directors. The first is Ina Brown, which is Hugh Brown's wife, Ina. Secondly is my wife, Cece. Let's give them a round of applause.
I think that Sherri Lloyd may be in the audience, the wife of Bob Lloyd. Is she? Hasn't gotten here yet. Okay. On the way. Okay, moving on. I'd like to introduce our officers now. We had all of our officers, senior leaders, in attendance Monday and Tuesday at our board retreat. Some of those people are on the road again. We've got a lot of things going, as you might recognize. I'm going to introduce those people who are here, ask them to rise, and we'll hold the applause and give them a round of applause when I finish the introductions. Of course, myself and Powell. Roy Bridges, who is a regional president. Linda Downs, who is a regional president. Here's Linda over here. Okay. Charlie, he's not here. Scott Penny, who's a regional president. Tony Strianese, regional president. Sam Boone, regional executive vice president.
Chris Walker, regional executive vice president. Cory Walker, senior vice president, chief financial officer, and treasurer. Bob Lloyd, vice president and general counsel. Laurel Grammig, vice president, secretary, and chief corporate counsel. Nick Daroshefsky, regional vice president. Tommy Huval, regional vice president, and Rich Knudsen, regional vice president. Those are your officers. At this time, I'd like to introduce the members of the Deloitte & Touche firm. As you know, they are our accounting people. We have a special visiting fireman who is from the upper levels of Deloitte today. I'll introduce him last. First is John Gordon, who is a partner. He is replacing Carlos McCown, who has left Deloitte & Touche and is now the chief financial officer of a large public firm. John, you might want to remain standing. Then we have Michelle Myers. Is Michelle here? Okay.
Then we have Peter Pruitt. Peter Pruitt is the senior partner in charge of all of Florida and the Caribbean. So we very much appreciate the good work that Deloitte does for our firm. Our relationship with them is excellent, and we are very pleased to have them continue as our auditors. Thank you very much. Now, Laurel Grammig, I would like to ask you to act as Secretary of the meeting and present proof of the calling of the meeting.
An affidavit certifying that on March 15th, 2012, the proxy statement and related materials were sent to all owners of record as of our record date, which was February 17th, 2012. I have a certified list of shareholders as of close of business on the record date from our transfer agent, American Stock Transfer & Trust Company.
Do we have a quorum?
Yes. The number of shares outstanding and entitled to vote on the record date was 143,352,139, of this amount, 131,893,451 shares, which represents approximately 92.01% of the total number of shares outstanding and entitled to vote are represented at this meeting.
Thank you. I'm pleased to announce that for two years in a row, we've had in excess of 92% of the outstanding shares voting. That's a very high percentage for a publicly owned company. The meeting is now lawfully convened, and we're ready to transact business. In the interest of saving time, I'll entertain a motion for the waiving of the minutes. Is there a motion?
Moved.
Is there a second?
Second.
Without objection, so its adoption. Now, I will also entertain a motion for the appointment of two individuals to act as inspectors of voting. Their duty will be to decide upon the qualification of voters, to accept the votes, and to count, account, and ascertain the number of shares voting for and against each proposal.
Chairman, I move that Travis Archer-
Claudia Roberts be appointed to act as inspectors of voting.
Is there a second?
Second.
Without objection, it's adopted. One of the things that I've often wondered, because I've been to a lot of shareholders meetings, does suppose someone came up and asked those people to count the votes that are in the audience, and it would be freeze. Okay. The inspectors have previously filed their oaths of office with the Secretary. We'll now turn to the vote of the nomination of the board of directors as set forth in the proxy statement. Most of you already submitted proxies by mail or today if you came in. If you have not turned in your proxy or if you wish to change your vote, please raise your hand, and the inspectors will see that you receive ballots, and they are collected after you're voted. Are there any people who want to raise their hands? Seeing no hands raised, we'll move right along.
Madam Secretary, do we have the results of the voting?
Yes. Each of the 11 nominees for the board of directors has received at least 87,598,204 votes, which is sufficient in each case for election.
Let me introduce your new board of directors, Hyatt Brown, Sam Bell, Hugh Brown, Powell Brown, Bradley Currey, Ted Hoepner, Toni Jennings, Tim Main, John Reedman, Chilton Varner, and Wendell Reilly. Congratulations.
Additionally, the approval of the ratification of Deloitte & Touche as the company's independent registered public accountants for the fiscal year ending December 31, 2012, received 131,374,735 votes, which is sufficient for approval. The approval on an advisory basis of the compensation of the named executive officers, which is commonly known as Say on Pay, has received 112,700,436 votes, sufficient for approval.
Very good. Thank you, Madam Secretary. This now concludes the business meeting, and we're in adjournment. We will now move into a presentation by Cory Walker of our financials. Before I call upon Cory, I would like to say that we're very, very pleased with our first quarter results, and Cory's going to talk a little bit about this and talk about last year. Then once Cory makes his presentation, I'll have a few remarks to make, and then we'll have questions from the audience. You're on, Cory.
Thank you. First of all, you've seen this before, disclosure that we're required to have up there, just that we're not going to update past this presentation. The bottom line for what we're going to do is talk a little bit about the 2011 numbers. Before that, we're also going to talk about the annual report that we have copies back here. Then we're going to talk a little bit about the first quarter results. The bottom line for 2011 was that we ended at $1.13, and that was up $0.01 from 2010 of $1.12. This is a chart of our revenue growth since we were a public company, and we've grown from essentially $95 million. This year, we exceeded $1 billion, $1,013,500,000. The significance of that is that if you look back at 2001, we were $365 million in revenues.
It was right after that year-end, we had our annual sales meeting, and that's when Hyatt, in front of 1,600 people, challenged all of our teammates to reach our next intermediate goal, which was $1 billion. You think about it, 365, we would have almost triple to get to $1 billion. It was a big goal back in 2002. You see, every year, we went up about $100 million. Went $300 million, went $400 million to $500 million, $600 million. Then 2007 hit, and we hit $900 million. Then the economic meltdown in 2008, we were constant in the $900 million range. Then finally this year, in 2011, we hit the $1 billion mark. That was a very big mark for Brown & Brown. What we want to do is we want to celebrate.
Our annual report is a celebration of achieving that goal of $1 billion. We are all about people, and what we're celebrating is the people of our company. We have 6,200 teammates, and it took the hard work and dedication of each of them to reach that $1 billion mark. Inside the annual report, we give honor to our producers and our program underwriters who go out and write new business. We also honor our service teams who maintain the relationships with our clients. Also, there's a lot of people in our company who are support that allow the producers and the service team to really focus on the clients and keep the company running in other aspects. We really honor the employees. We've taken a moment to celebrate.
The back cover of the annual report is our next intermediate goal. That's a goal that Powell unveiled last year to the group, and it's $2 billion. This is an actual picture that when Powell unveiled the $2 billion, the 1,600 people that were at our annual meeting basically signed it in committing their efforts to reach that goal. That's hanging up in our office, and it's a very nice picture. Let's look at the 2011 revenues and where that came from. We started in 2010, $973 million. We grew that $40 million in 2011. The interesting thing is to kind of figure out where did that $40 million come from. When you look at that really does tell the story of the year. We started out with acquisitions, added $78 million.
We had a little bit of income from investment and other income of $1 million. We did sell some business, that was $4.4 million that came back out. Because the loss ratios of the insurance carriers have increased, the amount of profit-sharing contingencies that we receive from the carriers have declined, and it declined $11.5 million last year. From just a same-store sales year-over-year, we lost $23.3 million, and that was 2.6% negative internal growth. This is the internal and the external growth chart since we've been really keeping records of it. The gold is the internal growth. The blue is the external acquisitions that we've acquired for the revenues that hit during that year. We'd always been positive. Then, of course, in 2007, that's when Citizens came into the marketplace in Florida and then the economic meltdown.
Every year, even though it was negative, we fought back and became less negative to where it was 2.6%. We're going to talk about the first quarter, and the first quarter was when we passed the zero line and became positive internal growth. That is huge, and we'll talk about that in a moment. With that revenue, generated our total operating profit. That includes our profit-sharing contingencies all in. We increased it almost every year until 2006. When the revenues started to drop back, it was hard to outrun the negative growth. Two-thirds of that negative growth really occurred because of our clients. They have been negatively impacted by the economic meltdown. Take a contractor that may have had $10 million of payrolls and a lot of jobs.
In 2007, all of a sudden, they may have only had $8 million, and therefore they paid less premiums, and we had less commissions. In 2009, they still went down further. 2010, they went down further. 2011 went down further. Went down less so than the previous year, but still down. Of course, our margins did drop. You can see that with the commitment of our teammates, they figured out ways to become more and more efficient in each of those years. Even though they dropped, the margins pretty much stayed steady right here in the last couple of years. We got 4 basic business segments, and this is their core revenue. This is how we run our business on a day-to-day basis. Which is really excluding any of the profit-sharing contingency commissions.
It also excludes any gains or losses on sales of books of businesses or fixed assets. It's really just policy over policy year and what the margins were. You can see the margins as a total company on a core basis drop. Here, even though last year in 2011, we had $23.3 million less revenues on a comparable basis, our margins still went up slightly. That is really an indication of the commitment of all of our people to continue to be more efficient today than we were yesterday. It takes a lot of effort on their part to do that. Let's look at each of the four segments that we have. Retail had $23 million less revenues, yet their margins went up by almost a half a point.
Our wholesale division, they did grow $1.9 million total revenues, their margins went up nicely. Our services grew by $600,000, their margins went up very nicely. The majority of that was because of a new acquisition they had called The Advocator Group. It has a much higher margin, their margin in the future will be more consistent with the 29% there. Programs had $2.7 million less revenues, their margins went down slightly. The majority of that related to one operation that we have called Proctor Financial, that for the first nine months, they had lower revenues, therefore their margins came down. The good thing is the fourth quarter of 2011, they're back to organic growth and are comparable, the margins will come back this year on that. How does that compare to our other publicly held peers?
As a group, this is a total operating profit. It includes profit-sharing contingencies, it add back interest, amortization, non-cash stock-based compensation, this change in acquisition earnout liability, it's divided by total revenue. As a group, the peers are 17.6%, that's compared to our 34.4%. Very much a significant difference. At the end of the day, the only thing that really matters is how much cash do we have left that we can then take and go and make other acquisitions. We start with just a comparison of 2010 versus 2011. We start with net income. We add back the non-cash items of amortization, depreciation. We're the non-cash items of the stock-based compensation, they add back the change in earnout liability, which is also just a accounting amount.
At the end of the day, we grew our cash earnings from almost $230 million to $240 million. We do pay our dividends, which increased again every year. We did have some fixed asset purchase. We did make some debt payments. At the end of the day, we had free cash flows of $178 million that we can then pile back into our business to grow it. That turns out to be 17.6% of our total revenue, which is an increase over last year. That will continue to grow. That's one aspect of growing the company. If you look at the peer average, the peer average is 6.3% compared to our 17.6%. Again, a very significant difference from Brown & Brown. Lastly, for the year, let's look at the balance sheet.
That's the other part of where we get our strength that we can continue to grow our business. At the end of 2011, we had $2.6 million of total assets. We had $708 million of current assets. We had current liabilities of $481 million, and we had long-term debt of $250,000. If you look at the cash ratio, that's roughly about 1.4 times that we can use our current assets to pay off our current liabilities. I've shown March of 2012 balance sheet, because in January, we made our largest single acquisition in terms of total dollars, and that was the Arrowhead acquisition out of San Diego. They have $107 million of total revenues. We bought it for roughly $400 million. We used $200 million of our own cash, we borrowed another $200 million to where we are now. Our total long-term liability is $450 million. Okay?
From a comparison standpoint, if you take that $250 million and divide it by our earnings before interest, taxes, and amortization, it only amounts to 0.7% of one. Basically, if we wanted to, we could pay off that $250 million debt at year-end in less than one year. When you add the additional $200 million of debt that we borrowed to help pay for the Arrowhead acquisition, we now can pay it off in 1.2 years. If you compare that to the industry average of 2.1 debt, it shows that we have a tremendous amount of dry powder that we can go out and borrow monies to then help in our acquisitions. The bottom line is we can continue, just like the last couple of years, really make almost any acquisition in the U.S. that we really would want to make.
You've got a very strong company from a balance sheet standpoint. Let's look at the first quarter, because the first quarter is very significant. We grew our revenue by 15%. Okay? That, as you'll see, is a large part due to the Arrowhead acquisition, as well as our internal growth. We finished the quarter at $0.34 earnings per share, up from $0.32 last year, with a 6.1% increase. Our total revenues last year were $262 million. We grew it just in the single quarter, $40 million. We ended at $302 million. Here's the real story. The air acquisitions in there, as well as the other acquisitions we had grew at $41 million. We did have an increase in investment and other income of $5.2 million, which is a little bit high for a quarterly basis. We had some books of business sales in there.
We had some legal settlements that came our way at $5.2 million. Let me skip this because that's the most important number on the slide. We did sell some business that amounted to about $3.1 million. The loss ratios are still high, we had $5.4 million less profit sharing contingency than we had the year before, that adds up to $40 million. Here's the story. We had positive internal growth for the first time in five years. That amounted to $2.1 million in the quarter. As we showed the negative growth in the last five years, the analogy I use is that every morning when we woke up, there was a big hole in the front door because the economy had come down and our clients suffered and their exposure units went down.
We'd go out and write a lot of new business, but all that new business wasn't coming close to filling in that hole. What we're saying is that the middle market economy where we're at has basically stabilized. Even though it's not necessarily going up, it's not going down like it was. When we open the front door, you don't have necessarily the big hole to start with. We're adding the new business that we had, plus there has been some increase in some rates, primarily in the cat-prone areas, that are actually sticking. The first quarter was the quarter that was the most concern for us during 2012. It seemed like the biggest hurdle to get over.
I think what we have now is that every quarter, we're cautiously optimistic that every quarter will be incrementally a little bit better than the first quarter. I think we feel very good about 2012 and look forward to our continued quest for our next intermediate goal of $2 billion.
Thanks, Cory. I'm going to speak without the mic. I don't like really standing behind the podium. It kind of walls you off from the people that you're talking to. The reality of life is that the economy is now kind of flat, maybe up a little in a couple places. It's still down in Nevada, and believe it or not, it's still down in Naples, Florida. Those are the two most difficult areas that we have businesses. We're in 37, 38 states, plus we have an office in London. We are very proud of something that is not apparent from the numbers, but I can tell you about it. In our meetings that we had all day yesterday, we were focusing, and Powell has been doing this for really about the last three or four years.
We're focusing on the recruitment and development of new people, not necessarily quote, "young people," just new people to our company. As the economy has been going this way, we have been able to bring on board folks who were with other businesses, very bright-eyed, bushy-tailed people. In fact, we probably would not have been able to hire them prior to the economic downturn, and we were, and these people are coming on like gangbusters. We're very proud of them. We are also expanding our marketing of our company into other areas of the U.S. as regard to recruitment of people. One of the things that we've done this year is we've opened up a relationship with Temple University in Philadelphia. Temple University has a very good risk management program.
We've hired 3 people so far, and we're looking at a lot of other people. It's a great group of people, young, bright-eyed, bushy-tailed, young men and women. There's something that happens when you bring in young people who are right out of college. They still are thinking about having fun, and this is a new thing, being truly an adult. There's got to be a lot of mentoring. We have a program that, in fact, hooks each of those folks up with someone who's a mentor in the organization, and then that mentor is responsible for helping them grow, not just technically in the insurance business, but all the other things you have to do to get into this kind of an organization where we're a meritocracy. We're focused on goals, and we reward those people who make the goals.
This 1st quarter is a pretty significant quarter for us in that we always believe that the 1st quarter of each year is the precursor for the rest of the year. If you have an office that has a good 1st quarter, then the rest of the year is probably going to be pretty good. If you have a good 1st quarter as a company, then the rest of the year is probably going to be pretty good. We're optimistic about the rest of this year, and it'll be nice to get the doggone election behind us because once that occurs, all of the stuff going on around the economy and what's going to happen on tax reform, entitlements, et cetera, all that sort of will start to be closed, and there will be some kind of a conclusion, and then everything will close.
We are very interested in the young people coming into our organization, having the opportunity to grow even more rapidly than they would expect. In a growing organization, we have a Las Vegas office, and in London. In a growing organization, there's just great opportunities for all the people, for the people that are with us and for the people that are coming. Having said that's sort of a brief potpourri. I'll be glad to open the floor for questions of myself or of Cory or of any of our senior people that are here about anything. Any questions? Yes, sir.
I guess I have 2 questions for you. First would be, I appreciate your target of getting to $2 billion of revenue, and I'm just curious how the management team and the board thinks about the balance of margin expansion versus the investment in people to get to those goals.
Well, I think I can answer the question. Powell has indicated that in the short term, he would be willing to sacrifice the margin for growth. That means bringing in new people, that means focusing on new programs, all those sorts of things. The bottom line is that we're going to get to that $2 billion number, and we're going to get there at a very high margin level. Where is that? Where are we going to end up ultimately? The answer is we don't know. That's where it's all going to end. When you have a focused group of people that, in fact, are all pulling the same direction at the same time, the results are pretty doggone good. Now, if you'll notice, our margins, relative to all the other publicly owned companies, there is one huge differential.
That huge differential, of course, we're double. For each dollar we bring in, we're going to get actually double what they would get in terms of profits bottom line. It's even better than that when you look at the free cash flow. Why is that? Well, there's two or three reasons, but the biggest reason is we're decentralized. Now, to run a decentralized organization where people have the opportunity to rise or recede based on their own abilities, there is a lot of blood, sweat, and tears on the road day, night, and Sunday, making sure that everybody's headed in the same direction. The decentralization will continue. The area that we also are interested in, of course, is that you'll notice in our internal growth numbers, we have been growing internally in several of the divisions, but not necessarily the retail division.
The retail division is the division that is most hardly hit by the recession, and where the customers of the retail division have had their revenues and their businesses going south. We have to try and help them. Just because someone's business is off 50%, their insurance premiums might be off more than that because they're cutting down on other coverages that maybe they made some fees this year, and we're going to save some money. The focus of the company has not changed. The focus on profitability hasn't changed because as an old friend of mine once said, "It's what you got left over in the chew box at the end of the year that counts." A lot of people don't have anything left over in the chew box, and our chew box continues to grow. Any other questions?
I have one question.
Yes.
You indicated the performance in the first quarter of each of your offices, which you aren't sure that the performance will actually be there.
We hope that's true. Yes.
Have you not started as you watch these tables or two tables, the performance, matching the performance at what they are at Q1? The second question is there a program that helps yet? How does working with the employees' performance help them move forward with a bottom or second quarter performance?
Sure. Question number one first is, do we know which offices are not performing at the level that we want them to perform? Yes, we do. There are two reasons. Number one, the economy in the area. For instance, in Las Vegas, we were actually pretty flat-edged in our Las Vegas office, but the economy is still going down in Las Vegas. We also had a large book of contractor business there, and the contractors are still going broke. The second thing is that as we've grown and expanded, there are some people who are not as productive as others, so we have to help them, and we have programs to do that, and that means bringing in new people. We're constantly, and Anna, one of the things that you would be interested in, we put out a Blue Book each quarter.
Blue Book goes to all the senior leaders, it's discussed in the offices around our country and around our company. It ranks all of the offices from the best to the worst. The offices that are on the bottom side, they have a real incentive to get up in the list. Of course, the interesting thing about it is that when we started doing this about 15, 18, maybe 20 years ago, the mark at the back 5% and over a very time and struggling with it on a level. We are very, very focused.
One of the things that, you got to recognize this, when we have 178 profit centers as I would say, each one of the profit centers is headed by a leader, that leader has a great deal of authority and responsibility, that leader also knows that when people are looking at his or her office, they're saying, "You did really well. Congratulations." Or, "You didn't do so well. How come?" There's this stimulus, the peer pressure, the publication and the fact that we have, every month, an organ called the Top Gun that ranks not only in offices, but it ranks all the producers in the company. There's this constant pressure to excel and to grow. Quite frankly, there are a lot of companies that grow the top line, but they don't grow the bottom line.
You can grow yourself into a very untenable position. Most companies who get so focused on growing the top line, and they forget about the bottom line, they never get the bottom line fixed. If you could go back 20 years, you look at Marsh McLennan, you look at Aon, you look at the other publicly owned brokers that now have 15%-17% margins, their margins were in the low 30s, I remember. There is a big difference in those kinds of two numbers. Number one, the culture of those companies. Number two, they're more focused on Fortune 500, and we're focused on small markets. Therefore, there is a greater need for what we do, bringing services, sales and services, and other services to our customers, because those people in small markets don't have representatives.
It becomes a very professional kind of thing when you're in the larger companies. I hope that answers your question. A little longer than you expected. Okay. Any other questions? Yes, sir. Good job.
Hi.
Well, let me ask a question. Now, was there enough R&D back there? I know you don't like telling a joke.
I'll tell you something .
Sure.
I'm going to compliment you to my AGM listeners this afternoon.
Very nice.
Very good.
Well, I better bring a few people up to the speedway then.
We're all standing.
That's right.
Okay. Anyway.
Thank you very much. That's him for the reason. A couple of things. You talked about the different markets, I'd like you to comment on this market, and the fact that you control most of the public business in this market, does that keep you up? Because even though the government whines all the time, they actually haven't suffered like poor people have. Second of all, would you tell us about your Embry-Riddle pipeline?
Okay. Well, number one, government is cash poor, and revenue is cash poor. We do write a lot of public business. One of the reasons that we write a lot of it is we specialize in it. If you specialize, then you really know what is needed and necessary for that particular client, and you're able to offer the coverage that is different, not necessarily be offered by someone else. The economy locally. Now, you got to understand the retail office here brings about $28 million or $29 million in revenue. About half of that business is not produced in Volusia County. It's produced in Florida and in other states around the United States. If you look at just the Florida, just the Volusia County economy, it's starting to get a little better. That's good news for all of us as a matter of fact.
Relative to the Embry-Riddle pipeline, what they've got in common out there is that Steve Ridder, who is a wonderful coach, but a wonderful mentor, and a wonderful person for young people to be led by, has become, about 10 or 12 years ago, very interested in recommending occasionally, a person from his basketball team, and he's had some great basketball teams, that he thinks has the right background and the right stuff to be part of Brown & Brown, because we're a very competitive organization. We now have, I believe, nine people that we've gotten from Embry-Riddle, all but one maybe from the basketball team, and every one of those people has been successful and has risen in our organization.
We have a program for internships with both Stetson and with Embry-Riddle, and we try and look at young people in their junior year and give them an orientation, then select two, three, or four out of, let's say, 20, 10 from each school, that we want to give a summer intern program. We get a chance to look at them, they get a chance to look at us. We're then picking, and we've gotten some very good people out of Stetson, in addition to Embry-Riddle. We are 97% people and 3% cash. If we don't constantly and consistently regenerate from the ground up, then we're going to do this. Other companies have sort of popped out. We ain't going to do that.
We are a growth organization, and we're going to do it through no big mistakes, great people, and a long-distance focus. Any other questions? Okay, hearing none, we will stand in adjournment. Thank you all very much. We very much appreciate you all being shareholders, and we're looking forward to a good year, and we'll see you all next year.