State National Companies, Inc. (NASDAQ:SNC), a leading specialty
provider of property and casualty insurance services, today
reported its financial results for the second quarter ended June
30, 2016. The Company also raised its 2016 outlook for the Lender
Services segment.
Key Highlights - Second Quarter 2016
Financials Compared to the Second Quarter 2015:
- Total revenues were $49.0 million, up 6%
- Premiums earned were $28.9 million, an increase of 12%
- Ceding fees were $16.9 million, up 3%
- Net income was $10.0 million, an increase of 3%
- EPS of $0.24, up from $0.22
- EBITDA was $17.2 million, up 4%
- Combined ratio for Lender Services was 89.3%, improving from
92.9%
Commenting on the results, State National’s
Chairman and Chief Executive Officer, Terry Ledbetter, said, “We
continued to achieve strong results in the quarter with increased
top and bottom line earnings driven by growth in both business
segments. Revenue increased 6% in the second quarter with net
income up 3%. Lender Services performed very well in the quarter,
and we believe we are gaining valuable market share. In Program
Services, we continue to target new clients and extend our
relationships with existing clients. In addition, we benefited from
the previously announced agreement extensions with our two largest
programs, Meadowbrook and Nephila, which have minimum fee
guarantees through at least 2017.”
Mr. Ledbetter continued, “I am pleased
with the progress we have made in our fronting business and with
our sales process. Our industry has been transformed by new
structures and platforms, which are beginning to compress the value
chain between risk and capital. State National is the natural
conduit between risk and capital because we are both a highly-rated
and broadly-licensed insurance carrier. We believe that State
National is well positioned for continued profitability and
enhanced shareholder value.”
Total revenues in the second quarter of 2016
were $49.0 million, up 6% from $46.4 million in the second quarter
of 2015. Net income was $10.0 million, or $0.24 per diluted
share, in the second quarter of 2016, compared to net income of
$9.7 million, or $0.22 per diluted share, for the same period in
2015.
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 6.1 million loans.
In the second quarter of 2016, total revenues
from the Lender Services segment were $29.7 million, an increase of
$3.2 million, or 12%, from the second quarter of 2015.
Premiums earned increased by $3.2 million, or 12%, to $28.9 million
in the second quarter of 2016 from $25.7 million in the second
quarter of 2015. Contributing to this increase in Lender Services
premiums are sales of new accounts and growth in loan portfolios of
existing accounts driven by rising automobile sales, higher average
automobile loan sizes and an aging U.S. automobile fleet.
Losses and loss adjustment expenses were $13.3
million in the second quarter of 2016, compared to
$12.1 million in the same period last year, primarily a result
of increased exposure due to higher earned premiums. While
the Lender Services loss ratio was relatively flat for the quarter,
the expense ratio continues to decline due to our ability to
effectively leverage fixed costs. The net expense ratio
decreased to 43.1% for the second quarter 2016 from 45.8% in the
second quarter 2015. The resulting net combined ratio
improved for the second quarter 2016 to 89.3% from 92.9% for 2015,
which is consistent with our objective of 85 to 90%.
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 second quarter of 2016, total revenues
from the Program Services segment were $16.9 million, an increase
of $500,000, or 3%, from the second 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
second quarter of 2016 increased to $17.1 million from $16.1
million in the second quarter of 2015, reflecting investment in
strategic growth and 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.
The Company had $5.6 million of goodwill and
other intangibles at June 30, 2016.
State National’s investment portfolio is
primarily comprised 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 $2.0 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 $1.5 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 336,000 shares for $3.5 million in
the second quarter. In total, under the program, the Company
has purchased approximately 2.3 million shares for $22.4
million and $27.6 million remains available under the plan.
2016 Outlook
State National has raised its outlook range in
Lender Services and has reaffirmed its outlook range in Program
Services:
Lender Services Segment
- Net Earned Premiums – $117 to $127 million (up from $115
to $125 million)
- Combined Ratio – 85 to 90 percent
Program Services Segment
- Ceding Fees - $61 to $66 million
Conference Call
State National will host a conference call
today, August 8, 2016, at 5:00 p.m. Eastern Time (4:00 p.m. Central
Time) to discuss its second quarter 2016 results. To access
the call live, dial (716) 247-5810 and use the conference ID number
41298406# 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 August 15, 2016 and may be
accessed by calling (404) 537-3406 and using pass code 41298406#.
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/.
Investor Day 2016
State National will host an Investor Day in New York City on
Tuesday, August 9, 2016, beginning at 8:00 a.m. This event will
also be webcast on the company’s website at
http://ir.statenational.com/.
Non-GAAP Reconciliation
The last page of this press release provides
reconciliations of non-GAAP financial measures.
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) |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
2016 |
|
2015 |
|
Assets: |
|
|
(Unaudited) |
|
|
|
|
Investments: |
|
|
|
|
|
|
|
Fixed-maturity securities –
available-for-sale, at fair value (amortized cost – $339,383,
$327,764, respectively) |
|
$ |
349,236 |
|
$ |
329,522 |
|
Equity securities –
available-for-sale, at fair value (cost – $3,790, $4,796,
respectively) |
|
|
4,165 |
|
|
5,544 |
|
Total investments |
|
|
353,401 |
|
|
335,066 |
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
|
45,632 |
|
|
51,770 |
|
Restricted cash and
investments |
|
|
2,835 |
|
|
3,717 |
|
Accounts receivable
from agents, net |
|
|
30,461 |
|
|
23,913 |
|
Reinsurance recoverable
on paid losses |
|
|
1,026 |
|
|
1,187 |
|
Deferred acquisition
costs |
|
|
953 |
|
|
1,075 |
|
Reinsurance
recoverables |
|
|
2,044,228 |
|
|
1,911,660 |
|
Property and equipment,
net (includes land held for sale – $1,034, $1,034,
respectively) |
|
|
16,758 |
|
|
17,163 |
|
Interest
receivable |
|
|
2,163 |
|
|
2,158 |
|
Income taxes
receivable |
|
|
610 |
|
|
3,330 |
|
Deferred income taxes,
net |
|
|
22,676 |
|
|
26,208 |
|
Goodwill and intangible
assets, net |
|
|
5,598 |
|
|
5,958 |
|
Other assets |
|
|
6,109 |
|
|
4,353 |
|
Total assets |
|
$ |
2,532,450 |
|
$ |
2,387,558 |
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
Unpaid losses and loss
adjustment expenses |
|
$ |
1,450,261 |
|
$ |
1,364,774 |
|
Unearned premiums |
|
|
627,878 |
|
|
585,448 |
|
Allowance for policy
cancellations |
|
|
56,616 |
|
|
59,610 |
|
Deferred ceding
fees |
|
|
30,758 |
|
|
29,119 |
|
Accounts payable to
agents |
|
|
2,206 |
|
|
2,458 |
|
Accounts payable to
insurance companies |
|
|
9,709 |
|
|
3,801 |
|
Debt, net |
|
|
43,761 |
|
|
43,740 |
|
Other liabilities |
|
|
30,907 |
|
|
35,151 |
|
Total liabilities |
|
|
2,252,096 |
|
|
2,124,101 |
|
|
|
|
|
|
|
|
|
Shareholders’
equity: |
|
|
|
|
|
|
|
Common stock, $.001 par
value (150,000,000 shares authorized; 42,383,994 and 42,699,550
shares issued at June 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 June 30, 2016 and December 31, 2015) |
|
|
— |
|
|
— |
|
Additional paid-in
capital |
|
|
226,644 |
|
|
224,719 |
|
Retained earnings |
|
|
46,725 |
|
|
37,322 |
|
Accumulated other
comprehensive income |
|
|
6,943 |
|
|
1,373 |
|
Total shareholders’
equity |
|
|
280,354 |
|
|
263,457 |
|
Total liabilities and
shareholders’ equity |
|
$ |
2,532,450 |
|
$ |
2,387,558 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATE NATIONAL COMPANIES,
INC.CONSOLIDATED STATEMENTS OF
INCOME(Unaudited)($ in thousands,
except for per share information) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Premiums earned |
$ |
|
28,916 |
|
|
$ |
|
25,705 |
|
|
$ |
|
60,593 |
|
|
$ |
|
54,989 |
|
|
Commission income |
|
|
305 |
|
|
|
|
364 |
|
|
|
|
626 |
|
|
|
|
734 |
|
|
Ceding fees |
|
|
16,917 |
|
|
|
|
16,379 |
|
|
|
|
33,161 |
|
|
|
|
30,523 |
|
|
Net investment income |
|
|
2,100 |
|
|
|
|
2,272 |
|
|
|
|
4,140 |
|
|
|
|
3,953 |
|
|
Realized net investment gains
(losses) |
|
|
282 |
|
|
|
|
1,186 |
|
|
|
|
(356 |
) |
|
|
|
1,451 |
|
|
Other income |
|
|
459 |
|
|
|
|
462 |
|
|
|
|
915 |
|
|
|
|
847 |
|
|
Total revenues |
|
|
48,979 |
|
|
|
|
46,368 |
|
|
|
|
99,079 |
|
|
|
|
92,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss adjustment
expenses |
|
|
13,743 |
|
|
|
|
12,649 |
|
|
|
|
28,832 |
|
|
|
|
26,182 |
|
|
Commissions |
|
|
1,130 |
|
|
|
|
1,260 |
|
|
|
|
2,827 |
|
|
|
|
2,757 |
|
|
Taxes, licenses, and fees |
|
|
804 |
|
|
|
|
563 |
|
|
|
|
1,506 |
|
|
|
|
1,275 |
|
|
General and administrative |
|
|
17,148 |
|
|
|
|
16,051 |
|
|
|
|
34,142 |
|
|
|
|
32,193 |
|
|
Interest expense |
|
|
553 |
|
|
|
|
505 |
|
|
|
|
1,090 |
|
|
|
|
1,005 |
|
|
Total
expenses |
|
|
33,378 |
|
|
|
|
31,028 |
|
|
|
|
68,397 |
|
|
|
|
63,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes |
|
|
15,601 |
|
|
|
|
15,340 |
|
|
|
|
30,682 |
|
|
|
|
29,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
Current tax expense (benefit) |
|
|
6,137 |
|
|
|
|
7,770 |
|
|
|
|
10,491 |
|
|
|
|
13,014 |
|
|
Deferred tax expense (benefit) |
|
|
(524 |
) |
|
|
|
(2,112 |
) |
|
|
|
533 |
|
|
|
|
(2,285 |
) |
|
|
|
|
5,613 |
|
|
|
|
5,658 |
|
|
|
|
11,024 |
|
|
|
|
10,729 |
|
|
Net income (loss) |
$ |
|
9,988 |
|
|
$ |
|
9,682 |
|
|
$ |
|
19,658 |
|
|
$ |
|
18,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
|
0.24 |
|
|
$ |
|
0.22 |
|
|
$ |
|
0.46 |
|
|
$ |
|
0.41 |
|
|
Diluted earnings per share |
|
|
0.24 |
|
|
|
|
0.22 |
|
|
|
|
0.46 |
|
|
|
|
0.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends, per
share |
$ |
|
0.06 |
|
|
$ |
|
0.01 |
|
|
$ |
|
0.12 |
|
|
$ |
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding – basic |
|
|
42,310,242 |
|
|
|
|
44,247,102 |
|
|
|
|
42,326,799 |
|
|
|
|
44,247,102 |
|
|
Weighted-average common shares
outstanding – diluted |
|
|
42,321,607 |
|
|
|
|
44,251,841 |
|
|
|
|
42,357,960 |
|
|
|
|
44,249,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Program Services Segment — Results of
OperationsUnaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
($ in thousands) |
|
2016 |
|
2015 |
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums earned |
|
$ |
— |
|
$ |
|
(3 |
) |
|
|
$ |
— |
|
$ |
|
(14 |
) |
|
Ceding fees |
|
|
16,917 |
|
|
|
16,379 |
|
|
|
|
33,161 |
|
|
|
30,523 |
|
|
Total
revenues |
|
|
16,917 |
|
|
|
16,376 |
|
|
|
|
33,161 |
|
|
|
30,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss adjustment
expenses |
|
|
396 |
|
|
|
553 |
|
|
|
|
905 |
|
|
|
967 |
|
|
Commissions |
|
|
2 |
|
|
|
2 |
|
|
|
|
3 |
|
|
|
2 |
|
|
Taxes, licenses, and fees |
|
|
3 |
|
|
|
4 |
|
|
|
|
11 |
|
|
|
9 |
|
|
General and administrative |
|
|
4,011 |
|
|
|
3,000 |
|
|
|
|
7,119 |
|
|
|
6,133 |
|
|
Total
expenses |
|
|
4,412 |
|
|
|
3,559 |
|
|
|
|
8,038 |
|
|
|
7,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes |
|
$ |
12,505 |
|
$ |
|
12,817 |
|
|
|
$ |
25,123 |
|
$ |
|
23,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Program gross
expense ratio |
|
|
1.2 |
% |
|
|
1.0 |
|
% |
|
|
1.2 |
% |
|
|
1.1 |
|
% |
Gross premiums
written |
|
$ |
336,395 |
|
$ |
|
296,146 |
|
|
|
$ |
607,421 |
|
$ |
|
561,058 |
|
|
Gross premiums
earned |
|
$ |
293,602 |
|
$ |
|
253,853 |
|
|
|
$ |
560,627 |
|
$ |
|
486,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lender Services Segment — Results of
OperationsUnaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
($ in thousands) |
|
2016 |
|
2015 |
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums earned |
|
$ |
28,916 |
|
$ |
25,708 |
|
|
$ |
60,593 |
|
$ |
55,003 |
|
Commission income |
|
|
305 |
|
|
364 |
|
|
|
626 |
|
|
734 |
|
Other income |
|
|
471 |
|
|
371 |
|
|
|
919 |
|
|
722 |
|
Total
revenues |
|
|
29,692 |
|
|
26,443 |
|
|
|
62,138 |
|
|
56,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss adjustment
expenses |
|
|
13,347 |
|
|
12,096 |
|
|
|
27,927 |
|
|
25,215 |
|
Commissions |
|
|
1,128 |
|
|
1,258 |
|
|
|
2,824 |
|
|
2,755 |
|
Taxes, licenses, and fees |
|
|
801 |
|
|
559 |
|
|
|
1,495 |
|
|
1,266 |
|
General and administrative |
|
|
10,528 |
|
|
9,958 |
|
|
|
21,135 |
|
|
20,131 |
|
Total
expenses |
|
|
25,804 |
|
|
23,871 |
|
|
|
53,381 |
|
|
49,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes |
|
$ |
3,888 |
|
$ |
2,572 |
|
|
$ |
8,757 |
|
$ |
7,092 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
ratio |
|
|
46.2 |
% |
|
47.1 |
% |
|
|
46.1 |
% |
|
45.8 |
% |
Net expense
ratio |
|
|
43.1 |
% |
|
45.8 |
% |
|
|
42.0 |
% |
|
43.9 |
% |
Net combined
ratio |
|
|
89.3 |
% |
|
92.9 |
% |
|
|
88.1 |
% |
|
89.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums
written |
|
$ |
36,483 |
|
$ |
29,464 |
|
|
$ |
68,942 |
|
$ |
62,113 |
|
Net premiums
written |
|
$ |
29,884 |
|
$ |
24,531 |
|
|
$ |
56,916 |
|
$ |
51,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Segment — Results of
OperationsUnaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
($ in thousands) |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
|
2,100 |
|
|
$ |
|
2,272 |
|
|
$ |
|
4,140 |
|
|
$ |
|
3,953 |
|
|
Realized net investment gains
(losses) |
|
|
|
282 |
|
|
|
|
1,186 |
|
|
|
|
(356 |
) |
|
|
|
1,451 |
|
|
Other income |
|
|
|
(12 |
) |
|
|
|
91 |
|
|
|
|
(4 |
) |
|
|
|
125 |
|
|
Total
revenues |
|
|
|
2,370 |
|
|
|
|
3,549 |
|
|
|
|
3,780 |
|
|
|
|
5,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
|
2,609 |
|
|
|
|
3,093 |
|
|
|
|
5,888 |
|
|
|
|
5,929 |
|
|
Interest expense |
|
|
|
553 |
|
|
|
|
505 |
|
|
|
|
1,090 |
|
|
|
|
1,005 |
|
|
Total
expenses |
|
|
|
3,162 |
|
|
|
|
3,598 |
|
|
|
|
6,978 |
|
|
|
|
6,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes |
|
|
|
(792 |
) |
|
|
|
(49 |
) |
|
|
|
(3,198 |
) |
|
|
|
(1,405 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit) |
|
|
|
5,613 |
|
|
|
|
5,658 |
|
|
|
|
11,024 |
|
|
|
|
10,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
|
(6,405 |
) |
|
$ |
|
(5,707 |
) |
|
$ |
|
(14,222 |
) |
|
$ |
|
(12,134 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Reconciliation
The accompanying information provides a reconciliation of this
non-GAAP financial measure to 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.
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATE NATIONAL COMPANIES, INC.Reconciliation of
Non-GAAP Financial Measures($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 30, |
June 30, |
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
EBITDA |
|
$ |
17,160 |
|
$ |
16,563 |
|
$ |
33,797 |
|
$ |
32,133 |
|
Reconciliation of
EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
9,988 |
|
$ |
9,682 |
|
$ |
19,658 |
|
$ |
18,356 |
|
Plus: Interest expense |
|
|
553 |
|
|
505 |
|
|
1,090 |
|
|
1,005 |
|
Plus: Income tax expense |
|
|
5,613 |
|
|
5,658 |
|
|
11,024 |
|
|
10,729 |
|
Plus: Depreciation and
amortization |
|
|
1,006 |
|
|
718 |
|
|
2,025 |
|
|
2,043 |
|
EBITDA |
|
$ |
17,160 |
|
$ |
16,563 |
|
$ |
33,797 |
|
$ |
32,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACTS:
State National Companies, Inc.
David Hale, COO & CFO
817-265-2000
Dennard ▪ Lascar Associates
Rick Black
713-529-6600
State National Companies, Inc. (NASDAQ:SNC)
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