BEDFORD, Texas, Nov. 9, 2016 /PRNewswire/ -- State National
Companies, Inc. (NASDAQ: SNC), a leading specialty provider of
property and casualty insurance services, today reported its
financial results for the third quarter ended September 30, 2016. The Company has raised its
2016 outlook and is also providing its outlook for 2017.
Key Highlights - Third Quarter 2016 Financials Compared to
the Third Quarter 2015:
- Total revenues were $57.9
million, up 13%
- Premiums earned were $33.7
million, an increase of 12%
- Ceding fees were $19.3 million,
up 2%
- Net income was $15.3 million, an
increase of 24%
- EPS of $0.37, up from
$0.28
- EBITDA was $25.6 million, up
23%
Commenting on the results, State National's Chairman and Chief
Executive Officer, Terry Ledbetter,
said, "Strong financial results in both our Lender and Program
Services segments led to significant earnings growth in the quarter
and generated a 24 percent increase in net income and a 23 percent
increase in EBITDA compared to last year. State National's capital
efficient and fee for service business model produces strong free
cash flow and earns high returns on equity. I am pleased with our
team's operational performance in both businesses. In Lender
Services, premiums earned grew 12% due to new sales, pricing
adjustments and continued growth in our existing accounts. In
Program Services, existing programs are growing and we are
continuing to establish new client relationships for fronting
programs. The growing global reinsurance and alternative capital
market is being transformed by new structures and platforms, which
are beginning to compress and realign the value chain between risk
and capital. State National has been a trusted provider of
fronting services for four decades as a highly-rated and
broadly-licensed insurance carrier. This successful history
and proven experience has established our reputation in this market
as the preferred conduit between the production of primary
insurance risk and capital. We believe these dynamics position
State National with a distinct competitive advantage in an
expanding market.
Mr. Ledbetter continued, "Based on our current performance,
combined with our expectations for the remainder of the year, we
have raised our 2016 outlook for both business segments and we are
providing our outlook for 2017."
Total revenues in the third quarter of 2016 were $57.9 million, up 13% from $51.2 million in the third quarter of 2015.
Net income was $15.3 million, or
$0.37 per diluted share, in the third
quarter of 2016, compared to net income of $12.4 million, or $0.28 per diluted share, for the same period in
2015. Realized investment gains were $2.0
million in the third quarter of 2016 up from a realized loss
of $0.6 million in the third quarter
of 2015. The impact of the realized net investment gains and losses
(net of tax) on EPS for the third quarter of 2016 was $0.03 per share.
Lender Services Segment
In Lender Services, the Collateral Protection Insurance, or CPI,
business is fully vertically integrated as State National manages
all aspects of the CPI business for its clients, including policy
issuance and administration, underwriting and claims, which we
believe is a competitive advantage in the market place.
Additionally, the Company differentiates itself from competitors by
establishing long-term relationships with clients, leveraging its
alliance with CUNA Mutual, and providing high-quality service and
advanced technology to more than 600 customers with portfolios in
excess of 6.2 million loans.
In the third quarter of 2016, total revenues from the Lender
Services segment were $34.6 million,
an increase of $3.7 million, or 12%,
from the third quarter of 2015. Premiums earned increased by
$3.5 million, or 12%, to $33.7 million in the third quarter of 2016 from
$30.2 million in the third quarter of
2015. Contributing to this increase in Lender Services premiums are
sales of new accounts, pricing adjustments and growth in loan
portfolios of existing accounts driven by rising automobile sales
and higher average automobile loan sizes.
Losses and loss adjustment expenses were $13.7 million in the third quarter of 2016,
compared to $13.7 million in the
same period last year. Losses were flat and the net expense
ratio decreased to 37.5% for the third quarter 2016 from 38.7% in
the third quarter 2015. This resulted in an improved net
combined ratio year to date of 84.5% compared to 87.8% year to date
in 2015.
Program Services Segment
The Program Services segment provides fronting to general agents
and insurance carriers to leverage State National's "A" (Excellent)
A.M. Best rating with its expansive licenses and trusted reputation
to provide access to the U.S. property and casualty insurance
market in exchange for ceding fees. State National issues the
policy, and the reinsurer assumes the risk.
In the third quarter of 2016, total revenues from the Program
Services segment were $19.3 million,
an increase of $0.4 million, or 2%,
from the third quarter of 2015. The growth in revenues was
driven by increased ceding fees from both new and existing client
programs.
General and Administrative Expenses
General and administrative expenses in the third quarter of 2016
increased to $17.2 million from
$14.5 million in the third quarter of
2015, reflecting investment in strategic growth and increased
public company expenses.
Balance Sheet
State National's balance sheet reflects low financial leverage
with $43.8 million of debt.
This debt has limited covenant requirements and is interest-only
until the mid-2030s.
State National's investment portfolio consists primarily of
fixed income securities, the majority of which have investment
grade ratings with short duration of approximately four years and
are laddered to allow for new funds to reinvest annually as rates
change.
Approximately $2.3 billion of
State National's assets are comprised of reinsurance recoverables,
which are primarily related to the Program Services segment.
Offsetting these recoverables are unpaid losses, loss adjustment
expenses and unearned premium liabilities for the same business.
Recoverables of approximately $1.7
billion are secured by trust funds or letters of credit.
Share Repurchase Program
In October 2015, State National's
Board of Directors authorized a $50.0
million share repurchase plan. The Company purchased
approximately 190,000 shares for $1.9
million in the third quarter. In total, under the
program, the Company has purchased approximately 2.5 million
shares for $24.4 million as of
September 30, 2016.
2016 and 2017 Outlook
State National has raised its 2016 outlook range:
Lender Services Segment
- Net Earned Premiums: $126 to
$130 million (up from $117 to $127
million)
- Combined Ratio: 84 to 87 percent (down from 85 to 90
percent)
Program Services Segment
- Ceding Fees: $68 to $70 million
(up from $61 to $66 million)
State National has also initiated its 2017 outlook range:
- Diluted earnings per share: $1.10 to
$1.20
Conference Call
State National will host a conference call tomorrow,
November 10, 2016, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss its third
quarter 2016 results. To access the call live, dial (412)
902-0030 and use the conference ID number 13647449# at least 10
minutes prior to the start time. Alternatively, investors can
listen live over the Internet by visiting the Company's website at
http://ir.statenational.com/. For those who cannot listen to
the live call, a telephonic replay will be available through
November 17, 2016 and may be accessed
by calling (201) 612-7415and using pass code 13647449#. Also,
an archive of the webcast will be available after the call for a
period of 90 days on the "Investor Relations" section of the
Company's website at http://www.statenational.com/.
Non-GAAP Reconciliation
The last page of this press release provides a reconciliation of
EBITDA, a non-GAAP financial measure, to net income, its most
directly comparable financial measure calculated and presented in
accordance with GAAP.
About State National Companies, Inc.
State National Companies, Inc. (NASDAQ: SNC) is a leading
specialty provider of property and casualty insurance services
operating in two niche markets across the
United States. In its Lender Services segment, the
Company specializes in providing collateral protection insurance,
which insures personal automobiles and other vehicles held as
collateral for loans made by credit unions, banks and specialty
finance companies. In its Program Services segment, the
Company leverages its "A" (Excellent) A.M. Best rating, expansive
licenses and reputation to provide access to the U.S. property and
casualty insurance market in exchange for ceding fees. To
learn more, please visit www.statenational.com. State
National routinely posts important Company information on its
website.
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
Various statements contained in this press release are
forward-looking statements made pursuant to the Safe Harbor
Provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements may include projections and
estimates concerning the timing and success of specific projects
and our future production, revenues, income and capital spending.
Our forward-looking statements are generally, but not always,
accompanied by words such as "estimate," "believe," "expect,"
"will," "plan," "target," "could" or other words that convey the
uncertainty of future events or outcomes.
There can be no assurance that actual developments will be
those anticipated by us. Actual results may differ materially from
those expressed or implied in these statements as a result of
significant risks and uncertainties, including, but not limited
to, our ability to recover from our capacity providers, the cost
and availability of reinsurance coverage, challenges to our use of
issuing carrier or fronting arrangements by regulators or changes
in state or federal insurance or other statutes or regulations,
our dependence on a limited number of business partners, potential
regulatory scrutiny of collateral protection insurance, level of
new car sales, availability of credit for vehicle purchases and
other factors affecting automobile financing, our ability to
compete effectively, a downgrade in the financial strength ratings
of our insurance subsidiaries, our ability to accurately underwrite
and price our products and to maintain and establish accurate loss
reserves, changes in interest rates or other changes in the
financial markets, the effects of emerging claim and coverage
issues, changes in the demand for our products, the effect of
general economic conditions, breaches in data security or other
disruptions with our technology, and changes in pricing or
other competitive environments.
Forward-looking statements involve inherent risks and
uncertainties that are difficult to predict, many of which are
beyond our control. Additional information about these risks and
uncertainties is contained in our filings with the Securities and
Exchange Commission. The forward-looking statements in this press
release speak only as of the date of this release, and we
undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
STATE NATIONAL
COMPANIES, INC. CONSOLIDATED BALANCE SHEETS ($
in thousands, except for share and per share
information)
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
2016
|
|
2015
|
|
Assets:
|
|
|
(Unaudited)
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
Fixed-maturity
securities – available-for-sale, at fair value (amortized cost
– $327,823, $327,764, respectively)
|
|
$
|
337,568
|
|
$
|
329,522
|
|
Equity
securities – available-for-sale, at fair value (cost –
$3,266, $4,796, respectively)
|
|
|
3,276
|
|
|
5,544
|
|
Total
investments
|
|
|
340,844
|
|
|
335,066
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
79,762
|
|
|
51,770
|
|
Restricted cash and
investments
|
|
|
2,837
|
|
|
3,717
|
|
Accounts receivable
from agents, net
|
|
|
32,541
|
|
|
23,913
|
|
Reinsurance
recoverable on paid losses
|
|
|
1,237
|
|
|
1,187
|
|
Deferred acquisition
costs
|
|
|
1,091
|
|
|
1,075
|
|
Reinsurance
recoverables
|
|
|
2,291,175
|
|
|
1,911,660
|
|
Property and
equipment, net (includes land held for sale – $1,034, $1,034,
respectively)
|
|
|
16,489
|
|
|
17,163
|
|
Interest
receivable
|
|
|
1,928
|
|
|
2,158
|
|
Income taxes
receivable
|
|
|
—
|
|
|
3,330
|
|
Deferred income
taxes, net
|
|
|
25,207
|
|
|
26,208
|
|
Goodwill and
intangible assets, net
|
|
|
12,768
|
|
|
5,958
|
|
Other
assets
|
|
|
4,759
|
|
|
4,353
|
|
Total
assets
|
|
$
|
2,810,638
|
|
$
|
2,387,558
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
Unpaid losses and
loss adjustment expenses
|
|
$
|
1,654,905
|
|
$
|
1,364,774
|
|
Unearned
premiums
|
|
|
673,677
|
|
|
585,448
|
|
Allowance for policy
cancellations
|
|
|
64,742
|
|
|
59,610
|
|
Deferred ceding
fees
|
|
|
32,700
|
|
|
29,119
|
|
Accounts payable to
agents
|
|
|
2,550
|
|
|
2,458
|
|
Accounts payable to
insurance companies
|
|
|
12,254
|
|
|
3,801
|
|
Debt, net
|
|
|
43,772
|
|
|
43,740
|
|
Income taxes
payable
|
|
|
1,320
|
|
|
—
|
|
Other
liabilities
|
|
|
33,086
|
|
|
35,151
|
|
Total
liabilities
|
|
|
2,519,006
|
|
|
2,124,101
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
Common stock, $.001
par value (150,000,000 shares authorized; 42,196,683 and 42,699,550
shares issued at September 30, 2016 and December 31,
2015, respectively)
|
|
|
42
|
|
|
43
|
|
Preferred stock,
$.001 par value (10,000,000 shares authorized; no shares issued and
outstanding at September 30, 2016 and December 31,
2015)
|
|
|
—
|
|
|
—
|
|
Additional paid-in
capital
|
|
|
227,817
|
|
|
224,719
|
|
Retained
earnings
|
|
|
57,574
|
|
|
37,322
|
|
Accumulated other
comprehensive income
|
|
|
6,199
|
|
|
1,373
|
|
Total shareholders'
equity
|
|
|
291,632
|
|
|
263,457
|
|
Total liabilities and
shareholders' equity
|
|
$
|
2,810,638
|
|
$
|
2,387,558
|
|
STATE NATIONAL
COMPANIES, INC. CONSOLIDATED STATEMENTS OF
INCOME (Unaudited) ($ in thousands, except for
per share information)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September 30,
|
September 30,
|
|
September 30,
|
September 30,
|
|
2016
|
2015
|
|
2016
|
2015
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Premiums
earned
|
$
|
33,700
|
|
$
|
30,156
|
|
$
|
94,293
|
|
$
|
85,145
|
Commission
income
|
|
389
|
|
|
340
|
|
|
1,015
|
|
|
1,074
|
Ceding fees
|
|
19,263
|
|
|
18,837
|
|
|
52,424
|
|
|
49,360
|
Net investment
income
|
|
2,001
|
|
|
2,008
|
|
|
6,141
|
|
|
5,961
|
Realized net investment
gains (losses)
|
|
2,063
|
|
|
(571)
|
|
|
1,707
|
|
|
880
|
Other income
|
|
501
|
|
|
381
|
|
|
1,416
|
|
|
1,228
|
Total
revenues
|
|
57,917
|
|
|
51,151
|
|
|
156,996
|
|
|
143,648
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
Losses and loss
adjustment expenses
|
|
13,755
|
|
|
14,773
|
|
|
42,587
|
|
|
40,955
|
Commissions
|
|
1,408
|
|
|
1,207
|
|
|
4,235
|
|
|
3,964
|
Taxes, licenses, and
fees
|
|
960
|
|
|
910
|
|
|
2,466
|
|
|
2,185
|
General and
administrative
|
|
17,235
|
|
|
14,456
|
|
|
51,377
|
|
|
46,649
|
Interest
expense
|
|
565
|
|
|
510
|
|
|
1,655
|
|
|
1,515
|
Total
expenses
|
|
33,923
|
|
|
31,856
|
|
|
102,320
|
|
|
95,268
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
23,994
|
|
|
19,295
|
|
|
54,676
|
|
|
48,380
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes:
|
|
|
|
|
|
|
|
|
|
|
|
Current tax expense
(benefit)
|
|
10,801
|
|
|
8,864
|
|
|
21,292
|
|
|
21,878
|
Deferred tax expense
(benefit)
|
|
(2,130)
|
|
|
(1,965)
|
|
|
(1,597)
|
|
|
(4,250)
|
|
|
8,671
|
|
|
6,899
|
|
|
19,695
|
|
|
17,628
|
Net income
(loss)
|
$
|
15,323
|
|
$
|
12,396
|
|
$
|
34,981
|
|
$
|
30,752
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per share attributable to common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.37
|
|
$
|
0.28
|
|
$
|
0.83
|
|
$
|
0.70
|
Diluted earnings per
share
|
|
0.37
|
|
|
0.28
|
|
|
0.83
|
|
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends, per
share
|
$
|
0.06
|
|
$
|
0.06
|
|
$
|
0.18
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding – basic
|
|
41,937,467
|
|
|
44,247,102
|
|
|
42,196,075
|
|
|
44,239,410
|
Weighted-average
common shares outstanding – diluted
|
|
41,940,918
|
|
|
44,247,827
|
|
|
42,215,846
|
|
|
44,244,247
|
Program Services
Segment — Results of
Operations Unaudited
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
($ in thousands)
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums
earned
|
|
$
|
3
|
|
$
|
4
|
|
|
$
|
3
|
|
$
|
(10)
|
|
Ceding fees
|
|
|
19,263
|
|
|
18,837
|
|
|
|
52,424
|
|
|
49,360
|
|
Total
revenues
|
|
|
19,266
|
|
|
18,841
|
|
|
|
52,427
|
|
|
49,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss
adjustment expenses
|
|
|
96
|
|
|
1,090
|
|
|
|
1,001
|
|
|
2,057
|
|
Commissions
|
|
|
2
|
|
|
—
|
|
|
|
5
|
|
|
2
|
|
Taxes, licenses, and
fees
|
|
|
2
|
|
|
(1)
|
|
|
|
13
|
|
|
8
|
|
General and
administrative
|
|
|
3,681
|
|
|
2,857
|
|
|
|
10,800
|
|
|
8,990
|
|
Total
expenses
|
|
|
3,781
|
|
|
3,946
|
|
|
|
11,819
|
|
|
11,057
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
$
|
15,485
|
|
$
|
14,895
|
|
|
$
|
40,608
|
|
$
|
38,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Program gross
expense ratio
|
|
|
1.1
|
%
|
|
1.0
|
%
|
|
|
1.1
|
%
|
|
1.1
|
%
|
Gross premiums
written
|
|
$
|
350,541
|
|
$
|
280,975
|
|
|
$
|
957,962
|
|
$
|
842,033
|
|
Gross premiums
earned
|
|
$
|
311,463
|
|
$
|
258,621
|
|
|
$
|
872,090
|
|
$
|
745,407
|
|
Lender Services
Segment — Results of Operations Unaudited
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
|
September 30,
|
($ in thousands)
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums
earned
|
|
$
|
33,697
|
|
$
|
30,152
|
|
|
$
|
94,290
|
|
$
|
85,155
|
|
Commission
income
|
|
|
389
|
|
|
340
|
|
|
|
1,015
|
|
|
1,074
|
|
Other income
|
|
|
491
|
|
|
381
|
|
|
|
1,410
|
|
|
1,103
|
|
Total
revenues
|
|
|
34,577
|
|
|
30,873
|
|
|
|
96,715
|
|
|
87,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss
adjustment expenses
|
|
|
13,659
|
|
|
13,683
|
|
|
|
41,586
|
|
|
38,898
|
|
Commissions
|
|
|
1,406
|
|
|
1,207
|
|
|
|
4,230
|
|
|
3,962
|
|
Taxes, licenses, and
fees
|
|
|
958
|
|
|
911
|
|
|
|
2,453
|
|
|
2,177
|
|
General and
administrative
|
|
|
10,262
|
|
|
9,550
|
|
|
|
31,397
|
|
|
29,681
|
|
Total
expenses
|
|
|
26,285
|
|
|
25,351
|
|
|
|
79,666
|
|
|
74,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
$
|
8,292
|
|
$
|
5,522
|
|
|
$
|
17,049
|
|
$
|
12,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
ratio
|
|
|
40.5
|
%
|
|
45.4
|
%
|
|
|
44.1
|
%
|
|
45.7
|
%
|
Net expense
ratio
|
|
|
37.5
|
%
|
|
38.7
|
%
|
|
|
40.4
|
%
|
|
42.1
|
%
|
Net combined
ratio
|
|
|
78.0
|
%
|
|
84.1
|
%
|
|
|
84.5
|
%
|
|
87.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums
written
|
|
$
|
45,746
|
|
$
|
40,522
|
|
|
$
|
114,688
|
|
$
|
102,635
|
|
Net premiums
written
|
|
$
|
37,517
|
|
$
|
33,039
|
|
|
$
|
94,433
|
|
$
|
84,452
|
|
Corporate
Segment — Results of
Operations Unaudited
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
($ in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
|
|
$
|
2,001
|
|
$
|
2,008
|
|
$
|
6,141
|
|
$
|
5,961
|
|
Realized net investment
gains (losses)
|
|
|
2,063
|
|
|
(571)
|
|
|
1,707
|
|
|
880
|
|
Other income
|
|
|
10
|
|
|
—
|
|
|
6
|
|
|
125
|
|
Total
revenues
|
|
|
4,074
|
|
|
1,437
|
|
|
7,854
|
|
|
6,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
3,292
|
|
|
2,049
|
|
|
9,180
|
|
|
7,978
|
|
Interest
expense
|
|
|
565
|
|
|
510
|
|
|
1,655
|
|
|
1,515
|
|
Total
expenses
|
|
|
3,857
|
|
|
2,559
|
|
|
10,835
|
|
|
9,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
|
217
|
|
|
(1,122)
|
|
|
(2,981)
|
|
|
(2,527)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
|
8,671
|
|
|
6,899
|
|
|
19,695
|
|
|
17,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(8,454)
|
|
$
|
(8,021)
|
|
$
|
(22,676)
|
|
$
|
(20,155)
|
|
Non-GAAP Reconciliation
Earnings before interest, taxes, depreciation and amortization,
or EBITDA, is considered a non-GAAP financial measure because it
reflects adjustments to net income for interest expense, income tax
expense, and depreciation and amortization. Management
believes this measure is helpful to investors because it provides a
supplemental measure of evaluating core financial performance
between periods.
The accompanying information provides a reconciliation of EBITDA
to net income, its most directly comparable financial measure
calculated and presented in accordance with accounting principles
generally accepted in the United States
of America ("GAAP"). This non-GAAP financial measure
should not be considered as an alternative to GAAP measures such as
net income, earnings per share, return on equity or any other GAAP
measure of liquidity or financial performance.
STATE NATIONAL
COMPANIES, INC. Reconciliation of Non-GAAP Financial
Measures ($ in thousands)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
September 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
EBITDA
|
|
$
|
25,633
|
|
$
|
20,850
|
|
$
|
59,430
|
|
$
|
52,983
|
|
Reconciliation of
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
15,323
|
|
$
|
12,396
|
|
$
|
34,981
|
|
$
|
30,752
|
|
Plus: Interest
expense
|
|
|
565
|
|
|
510
|
|
|
1,655
|
|
|
1,515
|
|
Plus: Income tax
expense
|
|
|
8,671
|
|
|
6,899
|
|
|
19,695
|
|
|
17,628
|
|
Plus: Depreciation and
amortization
|
|
|
1,074
|
|
|
1,045
|
|
|
3,099
|
|
|
3,088
|
|
EBITDA
|
|
$
|
25,633
|
|
$
|
20,850
|
|
$
|
59,430
|
|
$
|
52,983
|
|
CONTACTS:
|
State National
Companies, Inc.
David Hale, COO &
CFO
817-265-2000
|
|
|
|
Dennard ▪ Lascar
Associates
Rick Black
713-529-6600
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/state-national-companies-reports-third-quarter-2016-results-300360010.html
SOURCE State National Companies, Inc.