Fortegra Financial Announces 135.4% Increase in Net Income From
Continuing Operations
JACKSONVILLE, FL--(Marketwired - May 12, 2014) - Fortegra
Financial Corporation (NYSE: FRF), an insurance services company
offering a wide array of revenue enhancing products, including
payment protection products, motor club memberships, service
contracts, device and warranty services, and administration
services, to our business partners, including insurance companies,
retailers, dealers, insurance brokers and agents and financial
services companies, reported its results for the quarter ended
March 31, 2014, highlighted by the following results as
compared to the quarter ended March 31, 2013:
- Direct and assumed written premiums increased 24.5% to $101.5
million.
- Total revenues from continuing operations increased 12.9% to
$90.5 million.
- Net revenues increased 16.3% to $29.0 million.
- Income from continuing operations before non-controlling
interests increased 83.5% to $3.8 million.
- Net income from continuing operations increased 135.4% to $2.9
million, or $0.14 per diluted share.
- Adjusted EBITDA from continuing operations increased 43.2% to
$10.8 million.
- On April 11, 2014, we increased our line of credit with Wells
Fargo Bank, N.A. by $25.0 million to $100.0 million, extended the
maturity by two years, and negotiated more favorable interest rates
and unused line fees.
"We are pleased to report that the first quarter of 2014 was
very successful. We posted strong financial results, continued to
invest in the business and delivered on our operational
objectives. The decision to sharpen the Company's focus on our
payment protection, warranty and service contract products is
already yielding results," said Richard S. Kahlbaugh, Chairman,
President and Chief Executive Officer of Fortegra
Financial. "We reported double-digit growth in both revenue
and net income year-over-year, and delivered on our commitment to
manage expenses. Direct and assumed written premiums rose
substantially, up 24.5% over the prior year, and ProtectCELL posted
impressive results. We are very encouraged with the momentum
seen in the first quarter and we believe that we are well
positioned for future growth and to meet the guidance we previously
provided."
First Quarter 2014
Results Total revenues from continuing operations increased
$10.4 million, or 12.9%, to $90.5 million for the quarter ended
March 31, 2014, compared to $80.2 million for the same period
in 2013. The increase in revenues for 2014 includes organic
growth of $5.2 million, and $5.2 million as a result of the
accounting treatment required under purchase accounting for the
ProtectCELL acquisition. The organic growth is primarily
attributable to increases of $3.4 million in ceding commission and
$1.8 million in net earned premiums from our payment protection
products, and $3.6 million of higher service and administration
fees from ProtectCELL products. These increases were partially
offset by a $2.7 million decrease in motor club revenues and a $1.1
million decrease in our insurance client administrative
revenues.
Net revenues, a Non-GAAP measure, increased $4.1 million, or
16.3%, to $29.0 million for the quarter ended March 31, 2014
compared to $24.9 million for the same period in 2013. This
increase represents the organic growth in total revenues, partially
offset by corresponding increases in net losses and loss adjustment
expenses and member benefit claims.
Operating expenses, a Non-GAAP measure, decreased $0.5 million,
or 2.4%, to $18.4 million for the quarter ended March 31, 2014
compared to $18.9 million for the same period in 2013. The
2013 amount included $1.2 million in non-recurring costs associated
with the plan to consolidate certain functions within our
operations (the "Plan"). The 2014 period included a $0.9
million increase in personnel costs of ProtectCELL resulting from
adding staff during 2013 to support growth, partially offset by
savings in other areas. Other operating expenses increased
$0.2 million, or less than 2.0%, to $8.2 million for the quarter
ended March 31, 2014 despite our double-digit revenue
growth.
During the quarter ended March 31, 2014, we incurred a
charge of $1.3 million related to the Creative Investigations
Recovery Group, LLC ("CIRG") note receivable due to non-payment on
the note.
Income from continuing operations before non-controlling
interests for the quarter ended March 31, 2014 increased $1.7
million, or 83.5%, to $3.8 million compared to $2.0 million for the
same period in 2013.
Net income attributable to Fortegra Financial Corporation (which
includes the impact of discontinued operations) increased $0.4
million, or 16.2%, to $2.9 million for the quarter ended
March 31, 2014 compared to $2.5 million for the same period in
2013. Earnings per diluted share attributable to Fortegra Financial
Corporation increased 16.7% to $0.14 for the quarter ended
March 31, 2014 compared to $0.12 for the same period in
2013. Our 2014 results include $0.9 million of expense, net of
tax, or $0.04 per diluted share, from the allowance established
against the CIRG note receivable, while our 2013 results include
$0.8 million of expense, net of tax, or $0.04 per diluted share,
from the Plan.
Balance Sheet
Total investments and cash and cash equivalents totaled $154.2
million at March 31, 2014 compared to $160.5 million at
December 31, 2013. Unearned premiums were $249.4 million at
March 31, 2014 compared to $256.4 million at December 31,
2013. Total debt outstanding at March 31, 2014 increased
to $48.2 million compared to $38.3 million at December 31,
2013. Accrued expenses and accounts payable decreased to $43.1
million at March 31, 2014 compared to $53.0 million at
December 31, 2013, and liabilities of discontinued operations
decreased to $1.2 million at March 31, 2014 compared to $8.6
million at December 31, 2013. Stockholders' equity increased
to $170.7 million at March 31, 2014 compared to $166.5 million
at December 31, 2013.
Guidance Based
on the Company's performance for the first three months of 2014,
management's operating assumptions for the remainder of the year
and other factors, the Company is reiterating its 2014 guidance of
net revenue growth of 7% to 9% and Adjusted EBITDA margin of 32% to
34%. It should be noted that the Company typically experiences
some margin pressure in its second quarter due to seasonality.
Conference Call
Information Fortegra Financial's executive management will
host a conference call to discuss its first quarter results on
Tuesday, May 13, 2014 at 8:30 a.m. Eastern Time. To
participate in the live call, dial (877) 407-3982 within
the U.S., or (201) 493-6780 for
international callers. A live audio webcast will also be
available on the Investors page of the Company's website:
http://www.fortegrafinancial.com. A replay of the call will be
available beginning May 13, 2014 at 11:30 a.m. Eastern Time and
ending on May 20, 2014 at 11:59 p.m. Eastern Time on the Company's
website, and by dialing (877) 870-5176 in the
U.S. or (858) 384-5517 for
international callers. The pass code for the replay is
13581382.
Statistical
Supplement In addition, the Company has provided a
statistical supplement, which can be accessed through the "Investor
Relations" section of the Company's website at:
http://www.fortegrafinancial.com.
About Fortegra
Financial Corporation Fortegra Financial Corporation
(references in this report to "Fortegra Financial," "Fortegra,"
"we," "us," "the Company" or similar terms refer to Fortegra
Financial Corporation and its subsidiaries), traded on the New York
Stock Exchange under the symbol: FRF, is an insurance services
company headquartered in Jacksonville, Florida. Fortegra offers a
wide array of revenue enhancing products, including payment
protection products, motor club memberships, service contracts,
device and warranty services, and administration services, to our
business partners, including insurance companies, retailers,
dealers, insurance brokers and agents and financial services
companies. Fortegra's brands include Fortegra™, Life of the
South®, 4Warranty, ProtectCELL™, Continental Car Club™, Auto Knight
Motor Club™, United Motor Club™, Consecta™, Pacific Benefits Group™
and South Bay Acceptance Corporation.
Use of Non-GAAP
Financial Information We may present certain additional
financial measures related to our business that are "Non-GAAP
measures" within the meaning of Regulation G under the Securities
Act of 1934. We present these Non-GAAP measures to provide
investors with additional information to analyze our performance
from period to period. Management also uses these measures to
assess performance and to allocate resources in managing our
businesses. However, investors should not consider these
Non-GAAP measures as a substitute for the financial information
that we report in accordance with U.S. GAAP. These Non-GAAP
measures reflect subjective determinations by management, and may
differ from similarly titled Non-GAAP measures presented by other
companies.
In this Earnings Release, we may present Net income from
continuing operations - Non-GAAP Basis, Non-GAAP Earnings per share
from continuing operations - basic and diluted, Net revenues,
Operating expenses, EBITDA from continuing operations and Adjusted
EBITDA from continuing operations. These financial measures
are considered Non-GAAP financial measures and are not recognized
terms under U.S. GAAP and should not be used as an indicator of,
and are not an alternative to, net income or earnings per share as
a measure of operating performance. Net income from continuing
operations - Non-GAAP Basis generally means net income adjusted (on
a tax-effected basis) by transaction costs associated with
acquisitions, stock-based compensation, restructuring expenses, and
unusual or non-recurring charges and items that affect
comparability of results. Non-GAAP earnings per share from
continuing operations - basic and diluted adjust for the impact of
the Non-GAAP adjustments to net income, net of tax, on a per share
basis. Net revenues are total revenues less net losses and loss
adjustment expenses, member benefit claims, and commission
expenses. Operating expenses are the sum of personnel costs
and other operating expenses. EBITDA from continuing
operations is net income before interest expense, income taxes, net
income attributable to non-controlling interests, depreciation and
amortization. Adjusted EBITDA from continuing operations means
"Consolidated Adjusted EBITDA", which is defined under our credit
facility with Wells Fargo Bank, N.A. and which generally means
consolidated net income before net income attributable to
non-controlling interests, consolidated interest expense,
consolidated amortization expense, consolidated depreciation
expense and consolidated income tax expense, relating to continuing
operations. The other items excluded in this calculation may
include if applicable, but are not limited to, specified
acquisition costs, impairment of goodwill and other non-cash
charges, stock-based compensation expense, and unusual or
non-recurring charges and items that affect comparability of
results. The calculations presented in the tables
"RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION (Unaudited)" do
not give effect to certain additional adjustments permitted under
our credit facility, which if included, would increase the amount
of Adjusted EBITDA from continuing operations reflected in this
table. We believe presenting Net Income from continuing
operations - Non-GAAP Basis, Non-GAAP Earnings per share from
continuing operations - basic and diluted, Net revenue, Operating
expenses, EBITDA from continuing operations and Adjusted EBITDA
from continuing operations provides investors with supplemental
financial measures of our operating performance.
In addition to the financial covenant requirements under our
credit facility, management uses Net income from continuing
operations - Non-GAAP Basis, Non-GAAP Earnings per share from
continuing operations - basic and diluted, Net revenues, Operating
expenses, EBITDA from continuing operations and Adjusted EBITDA
from continuing operations as financial measures of operating
performance for planning purposes, which may include, but are not
limited to, the preparation of budgets and projections, the
determination of bonus compensation for executive officers, the
analysis of the allocation of resources and the evaluation of the
effectiveness of business strategies. We measure Net revenue
as another means of understanding product contributions to our
results. We measure Operating expenses to reconcile from Net
revenues to EBITDA. Although we use EBITDA from continuing
operations and Adjusted EBITDA from continuing operations as
financial measures to assess the operating performance of our
business, both measures have significant limitations as analytical
tools because they exclude certain material expenses. For example,
they do not include interest expense and the payment of income
taxes, which are both necessary elements of our costs and
operations. Since we use property and equipment to generate
revenues, depreciation expense is a necessary element of our costs.
In addition, the omission of amortization expense associated with
our intangible assets further limits the usefulness of this
financial measure. Management believes the inclusion of the
adjustments to EBITDA from continuing operations to derive Adjusted
EBITDA from continuing operations are appropriate to provide
additional information to investors about certain material non-cash
items and about unusual items that we do not expect to continue at
the same level in the future. Because EBITDA from continuing
operations and Adjusted EBITDA from continuing operations do not
account for these expenses, their utility as financial measures of
our operating performance has material limitations. Due to these
limitations, management does not view EBITDA from continuing
operations and Adjusted EBITDA from continuing operations in
isolation or as primary financial performance measures.
We believe Net income from continuing operations - Non-GAAP
Basis, Non-GAAP Earnings per share from continuing operations -
basic and diluted, EBITDA from continuing operations and Adjusted
EBITDA from continuing operations are frequently used by securities
analysts, investors and other interested parties in the evaluation
of similar companies in similar industries and to measure the
company's ability to service its debt and other cash needs. Because
the definitions of Net income from continuing operations - Non-GAAP
Basis, Non-GAAP Earnings per share from continuing operations -
basic and diluted, EBITDA from continuing operations and Adjusted
EBITDA from continuing operations (or similar financial measures)
may vary among companies and industries, they may not be comparable
to other similarly titled financial measures used by other
companies.
Forward-Looking
Statements This press release may contain forward-looking
statements within the meaning of the Private Securities Litigation
Act of 1995. Such statements are subject to risks and
uncertainties. All statements other than statements of
historical fact included in this press release are forward-looking
statements. Forward-looking statements give our current
expectations and projections relating to our financial condition,
results of operations, plans, objectives, future performance and
business. You can identify forward-looking statements by the
fact that they do not relate strictly to historical or current
facts. These statements may include words such as
"anticipate," "estimate," "expect," "project,'' "plan," "intend,"
"believe," "may," "should," "can have," "likely" and other words
and terms of similar meaning in connection with any discussion of
the timing or nature of future operating or financial performance
or other events.
The forward-looking statements contained or referred to in this
press release (including statements regarding: the Company's
guidance related to net revenue growth and Adjusted EBITDA margins,
the impact of seasonality on EBITDA margins, management's operating
assumptions, the Company being well positioned for future growth,
the efficiency and flexibility of our business under our new
operating structure, the size of the market opportunity resulting
from our competitor's announced exit from a segment of the payment
protection market, and the level of contribution of our recently
introduced products to our revenue growth in 2014) are based on
assumptions that we have made in light of our industry experience
and our perceptions of historical trends, current conditions,
expected future developments and other factors we believe are
appropriate under the circumstances. As you read this press
release, you should understand that these statements are not
guarantees of performance or results. They involve risks,
uncertainties (some of which are beyond our control) and
assumptions. Although we believe that these forward-looking
statements are based on reasonable assumptions, you should be aware
that many factors could affect our actual financial results and
cause them to differ materially from those anticipated in the
forward-looking statements. We believe these factors include,
but are not limited to, those described under Item 1A. - "Risk
Factors" in Fortegra's most current Annual Report on Form 10-K and
most current Quarterly Report on Form 10-Q, and any amendments to
those reports. Should one or more of these risks or uncertainties
materialize, or should any of these assumptions prove incorrect,
our actual results may vary in material respects from those
projected in these forward-looking statements.
Any forward-looking statement made by us in this press release
speaks only as of the date on which we make it. Factors or
events that could cause our actual results to differ may emerge
from time to time, and it is not possible for us to predict all of
them. We undertake no obligation to update any forward-looking
statement, whether the result of new information, future
developments or otherwise, except as may be required by law.
Further information concerning Fortegra and its business,
including factors that potentially could materially affect
Fortegra's financial results, is contained in Fortegra's filings
with the SEC, which are available free of charge at the SEC's
website at http://www.sec.gov and from Fortegra's website in the
"Investor Relations" section under "SEC Filings" at
http://www.fortegrafinancial.com.
|
FORTEGRA FINANCIAL CORPORATION |
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
(All Amounts in Thousands Except Share and Per
Share Amounts) |
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
March 31, 2014 |
|
March 31, 2013 |
Revenues: |
|
|
|
|
|
|
|
Service and administrative fees |
|
$ |
43,968 |
|
$ |
38,858 |
|
Ceding commissions |
|
|
10,549 |
|
|
7,163 |
|
Net investment income |
|
|
707 |
|
|
903 |
|
Net realized investment gains |
|
|
1 |
|
|
7 |
|
Net earned premium |
|
|
34,928 |
|
|
33,142 |
|
Other income |
|
|
375 |
|
|
91 |
Total revenues |
|
|
90,528 |
|
|
80,164 |
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Net losses and loss adjustment expenses |
|
|
10,826 |
|
|
10,535 |
|
Member benefit claims |
|
|
10,671 |
|
|
9,366 |
|
Commissions |
|
|
40,071 |
|
|
35,362 |
|
Personnel costs |
|
|
10,191 |
|
|
10,797 |
|
Other operating expenses |
|
|
8,225 |
|
|
8,075 |
|
Depreciation and amortization |
|
|
1,249 |
|
|
1,177 |
|
Amortization of intangibles |
|
|
1,317 |
|
|
1,468 |
|
Interest expense |
|
|
920 |
|
|
853 |
|
Loss on note receivable |
|
|
1,317 |
|
|
- |
Total expenses |
|
|
84,787 |
|
|
77,633 |
Income from continuing operations before income
taxes |
|
|
5,741 |
|
|
2,531 |
|
Income taxes - continuing operations |
|
|
1,982 |
|
|
482 |
Income from continuing operations before
non-controlling interests |
|
|
3,759 |
|
|
2,049 |
Discontinued operations: |
|
|
|
|
|
|
|
|
Income from discontinued operations - net of tax |
|
|
- |
|
|
1,262 |
Discontinued operations - net of tax |
|
|
- |
|
|
1,262 |
Net income before non-controlling interests |
|
|
3,759 |
|
|
3,311 |
|
|
Less:
net income attributable to non-controlling interests |
|
|
861 |
|
|
818 |
Net income attributable to Fortegra Financial
Corporation |
|
$ |
2,898 |
|
$ |
2,493 |
|
|
|
|
|
|
|
Earnings per
share - Basic: |
|
|
|
|
|
|
Net income from continuing operations - net of tax |
|
$ |
0.15 |
|
$ |
0.06 |
Discontinued operations - net of tax |
|
|
- |
|
|
0.07 |
|
|
Net
income attributable to Fortegra Financial Corporation |
|
$ |
0.15 |
|
$ |
0.13 |
|
|
|
|
|
|
|
Earnings per
share - Diluted: |
|
|
|
|
|
|
Net income from continuing operations - net of tax |
|
$ |
0.14 |
|
$ |
0.06 |
Discontinued operations - net of tax |
|
|
- |
|
|
0.06 |
|
|
Net
income attributable to Fortegra Financial Corporation |
|
$ |
0.14 |
|
$ |
0.12 |
|
|
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
|
19,651,256 |
|
|
19,556,743 |
|
Diluted |
|
|
20,436,442 |
|
|
20,625,041 |
|
|
|
|
|
|
|
|
|
FORTEGRA FINANCIAL CORPORATION |
CONSOLIDATED STATEMENTS OF INCOME - Discontinued
Operations (Unaudited) |
(All Amounts in Thousands) |
|
|
|
|
|
For the Three Months Ended |
|
|
March 31, 2013 |
Income from
discontinued operations: |
|
|
|
Revenues: |
|
|
|
|
Brokerage commissions and fees |
|
$ |
9,731 |
|
Net
investment income |
|
|
6 |
Total revenues |
|
|
9,737 |
|
|
|
|
Expenses: |
|
|
|
|
Personnel costs |
|
|
5,049 |
|
Other
operating expenses |
|
|
1,342 |
|
Depreciation and amortization |
|
|
141 |
|
Amortization of intangibles |
|
|
480 |
|
Interest expense |
|
|
591 |
Total expenses |
|
|
7,603 |
Income from discontinued operations before income
taxes |
|
|
2,134 |
|
Income taxes - discontinued operations |
|
|
872 |
Income from discontinued operations - net of tax |
|
$ |
1,262 |
|
|
|
|
|
|
FORTEGRA FINANCIAL CORPORATION |
|
CONSOLIDATED BALANCE SHEETS (Unaudited) |
|
(All Amounts in Thousands Except Share and Per
Share Amounts) |
|
|
|
|
|
|
|
|
|
|
At |
|
|
|
March 31, 2014 |
|
|
December 31, 2013 |
|
Assets: |
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
Fixed maturity securities available-for-sale, at fair
value |
|
$ |
135,726 |
|
|
$ |
131,751 |
|
|
Equity securities available-for-sale, at fair
value |
|
|
6,660 |
|
|
|
6,198 |
|
|
Short-term investments |
|
|
871 |
|
|
|
871 |
|
|
|
Total investments |
|
|
143,257 |
|
|
|
138,820 |
|
Cash and cash equivalents |
|
|
10,974 |
|
|
|
21,681 |
|
Restricted cash |
|
|
17,852 |
|
|
|
17,293 |
|
Accrued investment income |
|
|
1,083 |
|
|
|
1,175 |
|
Notes receivable, net |
|
|
15,912 |
|
|
|
11,920 |
|
Accounts and premiums receivable, net |
|
|
20,526 |
|
|
|
18,702 |
|
Other receivables |
|
|
28,376 |
|
|
|
33,409 |
|
Reinsurance receivables |
|
|
210,900 |
|
|
|
215,084 |
|
Deferred acquisition costs |
|
|
71,662 |
|
|
|
78,042 |
|
Property and equipment, net |
|
|
13,898 |
|
|
|
14,332 |
|
Goodwill |
|
|
73,701 |
|
|
|
73,701 |
|
Other intangible assets, net |
|
|
47,856 |
|
|
|
49,173 |
|
Other assets |
|
|
6,482 |
|
|
|
6,307 |
|
Assets of discontinued operations |
|
|
791 |
|
|
|
791 |
|
|
|
|
|
Total
assets |
|
$ |
663,270 |
|
|
$ |
680,430 |
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Unpaid claims |
|
$ |
36,632 |
|
|
$ |
34,732 |
|
Unearned premiums |
|
|
249,353 |
|
|
|
256,380 |
|
Policyholder account balances |
|
|
23,008 |
|
|
|
23,486 |
|
Accrued expenses, accounts payable and other
liabilities |
|
|
43,142 |
|
|
|
53,035 |
|
Income taxes payable |
|
|
1,762 |
|
|
|
2,842 |
|
Deferred revenue |
|
|
69,358 |
|
|
|
76,927 |
|
Notes payable |
|
|
13,165 |
|
|
|
3,273 |
|
Preferred trust securities |
|
|
35,000 |
|
|
|
35,000 |
|
Deferred income taxes, net |
|
|
19,960 |
|
|
|
19,659 |
|
Liabilities of discontinued operations |
|
|
1,236 |
|
|
|
8,603 |
|
|
|
|
Total liabilities |
|
|
492,616 |
|
|
|
513,937 |
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity: |
|
|
|
|
|
|
|
|
Preferred stock |
|
|
- |
|
|
|
- |
|
Common stock |
|
|
213 |
|
|
|
209 |
|
Treasury stock |
|
|
(8,014 |
) |
|
|
(8,014 |
) |
Additional paid-in capital |
|
|
99,687 |
|
|
|
99,398 |
|
Accumulated other comprehensive loss, net of tax |
|
|
(2,622 |
) |
|
|
(3,665 |
) |
Retained earnings |
|
|
75,430 |
|
|
|
72,532 |
|
|
|
|
Stockholders' equity before non-controlling
interests |
|
|
164,694 |
|
|
|
160,460 |
|
Non-controlling interests |
|
|
5,960 |
|
|
|
6,033 |
|
|
|
|
Total stockholders' equity |
|
|
170,654 |
|
|
|
166,493 |
|
|
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
663,270 |
|
|
$ |
680,430 |
|
|
|
|
|
|
|
|
|
|
|
|
FORTEGRA FINANCIAL CORPORATION |
|
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
(Unaudited) |
|
NET REVENUES, OPERATING EXPENSES, EBITDA FROM
CONTINUING OPERATIONS AND |
|
ADJUSTED EBITDA FROM CONTINUING OPERATIONS |
|
(All Amounts in Thousands, except for
percentages) |
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL
INFORMATION - NET REVENUES |
|
|
|
For the Three Months Ended |
|
|
|
March 31, 2014 |
|
|
March 31, 2013 |
|
Total revenues |
|
$ |
90,528 |
|
|
$ |
80,164 |
|
Less : |
|
|
|
|
|
|
|
|
|
|
Net
losses and loss adjustment expenses |
|
|
10,826 |
|
|
|
10,535 |
|
|
|
Member benefit claims |
|
|
10,671 |
|
|
|
9,366 |
|
|
|
Commissions |
|
|
40,071 |
|
|
|
35,362 |
|
Net revenues |
|
$ |
28,960 |
|
|
$ |
24,901 |
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL
INFORMATION - OPERATING EXPENSES |
|
|
|
For the Three Months Ended |
|
|
|
March 31, 2014 |
|
|
March 31, 2013 |
|
Personnel costs |
|
$ |
10,191 |
|
|
$ |
10,797 |
|
Other operating expenses |
|
|
8,225 |
|
|
|
8,075 |
|
Operating expenses |
|
$ |
18,416 |
|
|
$ |
18,872 |
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL
INFORMATION - EBITDA FROM CONTINUING OPERATIONS AND ADJUSTED EBITDA
FROM CONTINUING OPERATIONS |
|
|
|
For the Three Months Ended |
|
|
|
March 31, 2014 |
|
|
March 31, 2013 |
|
Income from continuing operations before
non-controlling interests |
|
$ |
3,759 |
|
|
$ |
2,049 |
|
|
Depreciation |
|
|
1,249 |
|
|
|
1,177 |
|
|
Amortization of intangibles |
|
|
1,317 |
|
|
|
1,468 |
|
|
Interest expense |
|
|
920 |
|
|
|
853 |
|
|
Income taxes |
|
|
1,982 |
|
|
|
482 |
|
EBITDA from continuing operations |
|
|
9,227 |
|
|
|
6,029 |
|
|
|
Transaction costs (1) |
|
|
10 |
|
|
|
86 |
|
|
|
Restructuring expenses |
|
|
- |
|
|
|
1,154 |
|
|
|
Stock-based compensation expense |
|
|
290 |
|
|
|
304 |
|
|
|
Loss
on note receivable |
|
|
1,317 |
|
|
|
- |
|
Adjusted EBITDA from continuing operations |
|
$ |
10,844 |
|
|
$ |
7,573 |
|
|
|
|
|
|
|
|
|
|
EBITDA from continuing operations margin (2) |
|
|
31.9 |
% |
|
|
24.2 |
% |
Adjusted EBITDA from continuing operations margin
(3) |
|
|
37.4 |
% |
|
|
30.4 |
% |
|
|
|
|
|
|
|
|
|
(1) Represents transaction costs associated with
acquisitions. |
|
(2) EBITDA from continuing operations margin is
calculated by dividing EBITDA from continuing operations by Net
Revenues. |
|
(3) Adjusted EBITDA from continuing operations margin
is calculated by dividing Adjusted EBITDA from continuing
operations by Net Revenues. |
|
|
|
|
FORTEGRA FINANCIAL CORPORATION |
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
(Unaudited) |
NET INCOME FROM CONTINUING OPERATIONS - NON-GAAP
BASIS |
AND NON-GAAP - EARNINGS PER SHARE FROM CONTINUING
OPERATIONS |
(All Amounts in Thousands Except Share and Per
Share Amounts) |
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
March 31, 2014 |
|
March 31, 2013 |
|
|
|
|
|
|
|
Income from continuing operations before
non-controlling interests |
|
$ |
3,759 |
|
$ |
2,049 |
|
|
Less:
net income attributable to non-controlling interests |
|
|
861 |
|
|
818 |
Net income from continuing operations |
|
|
2,898 |
|
|
1,231 |
|
|
|
|
|
|
|
Non-GAAP
Adjustments, net of tax * |
|
|
|
|
|
|
|
|
Transaction costs associated with acquisitions (1) |
|
|
10 |
|
|
86 |
|
|
Stock-based compensation |
|
|
189 |
|
|
197 |
|
|
Loss
on note receivable |
|
|
857 |
|
|
- |
|
|
Restructuring expenses |
|
|
- |
|
|
747 |
|
Total Non-GAAP adjustments, net of tax |
|
|
1,056 |
|
|
1,030 |
Net income from continuing operations - Non-GAAP
basis |
|
$ |
3,954 |
|
$ |
2,261 |
|
|
|
|
|
|
|
Earnings per
share - Basic: |
|
|
|
|
|
|
GAAP earnings per share from continuing operations -
basic |
|
$ |
0.15 |
|
$ |
0.06 |
|
Non-GAAP adjustments, net of tax |
|
|
0.05 |
|
|
0.05 |
Non-GAAP earnings per share from continuing operations
- basic |
|
$ |
0.20 |
|
$ |
0.11 |
|
|
|
|
|
|
|
Earnings per
share - Diluted: |
|
|
|
|
|
|
GAAP earnings per share from continuing operations -
diluted |
|
$ |
0.14 |
|
$ |
0.06 |
|
Non-GAAP adjustments, net of tax |
|
|
0.05 |
|
|
0.05 |
Non-GAAP earnings per share from continuing operations
- diluted |
|
$ |
0.19 |
|
$ |
0.11 |
|
|
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
19,651,256 |
|
|
19,556,743 |
|
|
Diluted |
|
|
20,436,442 |
|
|
20,625,041 |
|
|
|
|
|
|
|
* - Tax effected at approximately 35.0%. |
(1) Adjustments not tax effected. |
Note: Earnings per share amounts may not add or
recalculate due to rounding. |
|
The Fortegra (NYSE:FRF)
Historical Stock Chart
From Jun 2024 to Jul 2024
The Fortegra (NYSE:FRF)
Historical Stock Chart
From Jul 2023 to Jul 2024