1347 Property Insurance Holdings, Inc. Announces Availability of 2019 Third Quarter Financial Results
Asset Sale to FedNat
As previously announced on
The Company’s shareholders have approved the Asset Sale. Additionally, regulatory approvals by the
Consistent with the determination at the conclusion of the second fiscal quarter of 2019, as of
Significant Financial and Operating Highlights during the Third Quarter 2019 included:
(unless otherwise noted financial comparisons are to the prior-year quarter and include results from operations currently classified as discontinued)
- Book value per share of
$6.34 atSeptember 30, 2019 versus$7.53 atDecember 31, 2018 . - Gross premiums written of
$27.4 million , up 4.4% from$26.3 million . - Net premiums earned decreased 2.0% to
$13.2 million from$13.5 million . - Net (loss) from continuing operations of
$(0.1) million as compared to$(1.0) million ; net (loss) from discontinued operations, net of income taxes, of$(3.5) million as compared to net (loss) of$(1.2) million . - Net (loss) was approximately
$(3.5) million , compared to net (loss) of$(2.1) million . - On a fully diluted per share basis, continuing operations incurred a net (loss) of
$(0.07) and discontinued operations incurred a net (loss) of$(0.58) per diluted share after deducting dividends paid to our preferred shareholders, compared to a net (loss) of$(0.21) and a net (loss) of$(0.20) per diluted share, respectively. - Direct and assumed policy count at
September 30, 2019 decreased to approximately 64,000, down approximately 7.0% from approximately 68,800 atDecember 31, 2018 .
Detailed financial results are provided in the Company’s Form 10-Q filed on
About
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are therefore entitled to the protection of the safe harbor provisions of these laws. These statements may be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “budget,” “can,” “contemplate,” “continue,” “could,” “envision,” “estimate,” “expect,” “evaluate,” “forecast,” “goal,” “guidance,” “indicate,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “possibly,” “potential,” “predict,” “probable,” “probably,” “pro-forma,” “project,” “seek,” “should,” “target,” “view,” “will,” “would,” “will be,” “will continue,” “will likely result” or the negative thereof or other variations thereon or comparable terminology. We have based these forward-looking statements on our current expectations, assumptions, estimates, and projections. While we believe these to be reasonable, such forward-looking statements are only predictions and involve a number of risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance, or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Management cautions that the forward-looking statements in this press release are not guarantees of future performance, and we cannot assume that such statements will be realized or the forward-looking events and circumstances will occur. Factors that might cause such a difference include, without limitation: our limited operating history as a publicly traded company and status as an emerging growth company; our ability to obtain market share; our ability to access capital; changes in economic, business and industry conditions; legal, regulatory and tax developments; our ability to comply with regulations imposed by the states of
Our expectations may not be realized. If one of these risks or uncertainties materialize, or if our underlying assumptions prove incorrect, actual results may vary materially from those expected, estimated or projected. You are cautioned not to place undue reliance on forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof and do not necessarily reflect our outlook at any other point in time. We do not undertake and specifically decline any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect new information, future events or developments.
Additional Information
Additional information about
Consolidated Statements of Operations and Comprehensive Income (in thousands, except share and per share data) (Unaudited) |
|||||||||||||||
|
Three months ended |
|
Nine months ended |
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Net investment income |
$ |
523 |
|
|
$ |
299 |
|
|
$ |
1,257 |
|
|
$ |
856 |
|
Total revenue |
|
523 |
|
|
|
299 |
|
|
|
1,257 |
|
|
|
856 |
|
|
|
|
|
|
|
|
|
||||||||
Expenses: |
|
|
|
|
|
|
|
||||||||
General and administrative expenses |
|
595 |
|
|
|
487 |
|
|
|
2,236 |
|
|
|
1,097 |
|
Accretion of discount on Series B Preferred Shares |
– |
|
– |
|
– |
|
|
33 |
|
||||||
Loss on repurchase of Series B Preferred Shares and Performance Shares |
– |
|
|
1,000 |
|
|
– |
|
|
1,612 |
|
||||
Total expenses |
|
595 |
|
|
|
1,487 |
|
|
|
2,236 |
|
|
|
2,742 |
|
|
|
|
|
|
|
|
|
||||||||
Loss from continuing operations before income tax expense |
|
(72 |
) |
|
|
(1,188 |
) |
|
|
(979 |
) |
|
|
(1,886 |
) |
Income tax benefit |
|
(12 |
) |
|
|
(250 |
) |
|
|
(162 |
) |
|
|
(397 |
) |
Net loss from continuing operations |
|
(60 |
) |
|
|
(938 |
) |
|
|
(817 |
) |
|
|
(1,489 |
) |
Net income (loss) from discontinued operations, net of income taxes |
|
(3,475 |
) |
|
|
(1,176 |
) |
|
|
(7,152 |
) |
|
|
1,461 |
|
Net loss |
$ |
(3,535 |
) |
|
$ |
(2,114 |
) |
|
$ |
(7,969 |
) |
|
$ |
(28 |
) |
|
|
|
|
|
|
|
|
||||||||
Dividends declared on Series A Preferred Shares |
|
350 |
|
|
|
350 |
|
|
|
1,050 |
|
|
|
758 |
|
Loss attributable to common shareholders |
$ |
(3,885 |
) |
|
$ |
(2,464 |
) |
|
$ |
(9,019 |
) |
|
$ |
(786 |
) |
|
|
|
|
|
|
|
|
||||||||
Basic and diluted earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
(0.07 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.37 |
) |
Discontinued operations |
$ |
(0.58 |
) |
|
$ |
(0.20 |
) |
|
$ |
(1.19 |
) |
|
$ |
0.24 |
|
Loss per share attributable to common shareholders |
$ |
(0.65 |
) |
|
$ |
(0.41 |
) |
|
$ |
(1.50 |
) |
|
$ |
(0.13 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
|
6,015,753 |
|
|
|
5,991,856 |
|
|
|
6,013,771 |
|
|
|
5,987,644 |
|
|
|
|
|
|
|
|
|
||||||||
Consolidated Statement of Comprehensive Income |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(3,535 |
) |
|
$ |
(2,114 |
) |
|
$ |
(7,969 |
) |
|
$ |
(28 |
) |
Unrealized gains (losses) on investments available for sale, net of income taxes |
|
(92 |
) |
|
|
(133 |
) |
|
|
1,783 |
|
|
|
(1,010 |
) |
Comprehensive loss |
$ |
(3,627 |
) |
|
$ |
(2,247 |
) |
|
$ |
(6,186 |
) |
|
$ |
(1,038 |
) |
Consolidated Balance Sheets (in thousands, except share and per share data) |
||||||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Limited liability investments |
|
$ |
3,994 |
|
|
$ |
2,987 |
|
Cash and cash equivalents |
|
|
1,803 |
|
|
|
3,666 |
|
Deferred tax asset, net |
|
|
376 |
|
|
|
265 |
|
Surplus notes receivable from affiliate |
|
|
18,961 |
|
|
|
18,244 |
|
Other assets |
|
|
254 |
|
|
|
67 |
|
Assets of discontinued operations held for sale |
|
|
138,700 |
|
|
|
144,569 |
|
Total assets |
|
$ |
164,088 |
|
|
$ |
169,798 |
|
|
|
|
|
|
||||
LIABILITIES |
|
|
|
|
||||
Accounts payable |
|
|
510 |
|
|
|
66 |
|
Current income taxes payable |
|
|
1,935 |
|
|
|
932 |
|
Due to affiliates |
|
|
3,108 |
|
|
|
2,698 |
|
Other accrued expenses |
|
|
43 |
|
|
|
36 |
|
Liabilities of discontinued operations held for sale |
|
|
102,809 |
|
|
|
103,319 |
|
Total liabilities |
|
$ |
108,405 |
|
|
$ |
107,051 |
|
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
|
||||
|
|
|
|
|
||||
SHAREHOLDERS’ EQUITY |
|
|
|
|
||||
Series A Preferred Shares, issued and outstanding as of both periods |
|
$ |
17,500 |
|
|
$ |
17,500 |
|
Common stock, shares issued as of and 6,012,764 shares outstanding as of respectively |
|
|
6 |
|
|
|
6 |
|
Additional paid-in capital |
|
|
46,502 |
|
|
|
46,340 |
|
Retained earnings |
|
|
(8,266 |
) |
|
|
639 |
|
Accumulated other comprehensive income (loss), net of tax |
|
|
950 |
|
|
|
(729 |
) |
|
|
|
56,692 |
|
|
|
63,756 |
|
Less: treasury stock at cost; 151,359 shares for both periods |
|
|
(1,009 |
) |
|
|
(1,009 |
) |
Total shareholders’ equity |
|
|
55,683 |
|
|
|
62,747 |
|
Total liabilities and shareholders’ equity |
|
$ |
164,088 |
|
|
$ |
169,798 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20191114005670/en/
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