American Independence Corp. Announces 2007 Fourth-Quarter and Annual Results
March 17 2008 - 7:44AM
Business Wire
American Independence Corp. (NASDAQ: AMIC) today reported 2007
fourth-quarter and annual results. Financial Results Revenues
increased to $28.5 million for the three months ended December 31,
2007, compared to revenues of $22.1 million for the three months
ended December 31, 2006. Net income was $0.3 million ($.04 per
share, diluted), net of a provision for income taxes of $0.2
million, for the three months ended December 31, 2007, compared to
$0.6 million ($.07 per share, diluted), net of a provision for
income taxes of $0.4 million, for the three months ended December
31, 2006. As of December 31, 2007, AMIC had approximately $275
million of federal net operating loss carryforwards. To the extent
that AMIC utilizes any such carryforwards, it will not pay any
income taxes, except for federal alternative minimum taxes and
state income taxes. AMIC also reported net income of $1.1 million
($.13 per share, diluted), net of a provision for income taxes of
$0.7 million, for the year ended December 31, 2007, compared to
$1.5 million ($.17 per share, diluted), net of a provision for
income taxes of $1.0 million, for the year ended December 31, 2006.
Revenues increased to $119.1 million for the year ended December
31, 2007, compared to revenues of $81.5 million for the year ended
December 31, 2006. On a non-GAAP basis, the Company's income from
continuing operations excluding amortization expense and federal
income tax charge related to deferred taxes for the three months
ended December 31, 2007 was $0.5 million ($.06 per share, diluted),
as compared to $1.0 million ($.12 per share, diluted) for the three
months ended December 31, 2006. On a non-GAAP basis, the Company's
income from continuing operations excluding amortization expense
and federal income tax charge related to deferred taxes was $1.9
million ($0.22 per share, diluted) for the year ended December 31,
2007, as compared to $2.7 million ($.32 per share, diluted) for the
year ended December 31, 2006. Chief Executive Officer�s Comments
Roy Thung, Chief Executive Officer, commented, �We are very pleased
with the increased revenues generated in 2007 and the direction of
AMIC in general but are disappointed with the drop in our earnings.
This decrease was largely caused by the need to strengthen reserves
in the third quarter of 2007 for medical stop-loss business written
in 2006 and 2007. We are optimistic that we will see increases in
both revenues and earnings in 2008 for the following reasons. Given
Independence American�s enhanced A- (Excellent) rating from A.M.
Best, we expect that Independence American will write more health
business. In particular, in 2008, we expect to expand premiums from
our major medical plans for individuals and families. The fully
insured medical business written by Independence American in 2007
produced profits, and we expect that this will continue in 2008 and
beyond. In addition, our fixed maturity portfolio is rated, on
average, AA, and our book value is $9.96 per share.� Non-GAAP
Financial Measures The Company provides non-GAAP financial measures
to complement its consolidated financial statements presented in
accordance with GAAP. These non-GAAP financial measures are
intended to supplement the user's overall understanding of the
Company's current financial performance and its prospects for the
future. Specifically, the Company believes the non-GAAP results
provide useful information to both management and investors by
identifying certain expenses that, when excluded from the GAAP
results, may provide additional understanding of the Company's core
operating results or business performance. However, these non-GAAP
financial measures are not intended to supersede or replace the
Company's GAAP results. A reconciliation of the non-GAAP results to
the GAAP results is provided in the "Reconciliation of GAAP Income
from Continuing Operations to Non-GAAP Income from Continuing
Operations� schedule below. Operating results reported on a
non-GAAP basis exclude non-cash charges related to the amortization
of intangible assets recorded in purchase accounting and the
Federal income tax charge related to deferred taxes. About American
Independence Corp. AMIC is a holding company principally engaged in
employer medical stop-loss, small group major medical, major
medical for individuals and families, and managed care insurance
and reinsurance through Independence American Insurance Company and
its managing general underwriter division. Certain statements in
this news release may be considered forward-looking statements,
such as statements relating to management�s views with respect to
future events and financial performance. Such forward-looking
statements are subject to risks, uncertainties and other factors
which could cause actual results to differ materially from
historical experience or from future results expressed or implied
by such forward-looking statements. Potential risks and
uncertainties include, but are not limited to, economic conditions
in the markets in which AMIC operates, new federal or state
governmental regulation, AMIC�s ability to effectively operate,
integrate and leverage any past or future strategic acquisition,
and other factors which can be found in AMIC�s other news releases
and filings with the Securities and Exchange Commission. AMERICAN
INDEPENDENCE CORP. FOURTH QUARTER REPORT DECEMBER 31, 2007 (In
thousands except per share data) � � Three Months Ended December
31, Year Ended December 31, 2007 � 2006 2007 � 2006 � Premiums
earned $ 25,395 $ 18,402 $ 106,100 $ 67,777 MGU fee income 2,269
2,738 9,398 10,356 Net investment income 915 901 3,611 3,267 Net
realized investment gains (losses) (137) 18 (88) 66 Other income 59
5 75 19 � Revenues 28,501 22,064 119,096 81,485 � Insurance
benefits, claims and reserves 19,039 12,791 78,618 47,799 Selling,
general and administrative expenses 8,659 8,115 37,463 30,267
Amortization and depreciation 242 130 971 689 Minority interest 66
57 215 262 � Expenses 28,006 21,093 117,267 79,017 � Income (loss)
from continuing operations before income tax 495 971 1,829 2,468
Provision (benefit) for income tax 190 361 691 960 � Income (loss)
from continuing operations 305 610 1,138 1,508 Gain (loss) on
disposition of discontinued operations, net of tax - - - (54) � Net
income (loss) $ 305 $ 610 $ 1,138 $ 1,454 � Basic Income (Loss) Per
Common Share: Income (loss) from continuing operations $ .04 $ .07
$ .13 $ .18 Gain (loss) on disposition of discontinued operations,
net of tax - - - (.01) � Net income (loss) $ .04 $ .07 $ .13 $ .17
� Weighted average basic common shares 8,504 8,454 8,484 8,452 �
Diluted Income (Loss) Per Common Share: Income (loss) from
continuing operations $ .04 $ .07 $ .13 $ .18 Gain (loss) on
disposition of discontinued operations, net of tax - - - (.01) �
Net income (loss) $ .04 $ .07 $ .13 $ .17 � Weighted average
diluted common shares 8,532 8,514 8,535 8,506 As of December 31,
2007 there were 8,503,989 common shares outstanding, net of
treasury shares. RECONCILIATION OF GAAP INCOME FROM CONTINUING
OPERATIONS TO NON-GAAP INCOME FROM CONTINUING OPERATIONS (In
thousands except per share data) � � Three Months Ended December
31, � Year Ended December 31, 2007 � 2006 2007 � 2006 � Income
(loss) from continuing operations $ 305 $ 610 $ 1,138 $ 1,508
Amortization of intangible assets related to purchase accounting 50
73 194 427 Federal income tax charge (benefit) related to deferred
taxes 146 305 518 749 � Income (loss) from continuing operations
excluding amortization and federal income tax charge (benefit) $
501 $ 988 $ 1,850 $ 2,684 � Non - GAAP Basic Income (Loss) Per
Common Share: Income (loss) from continuing operations excluding
amortization and federal income tax charge (benefit) $ .06 $ .12 $
.22 $ .32 � Non - GAAP Diluted Income (Loss) Per Common Share:
Income (loss) from continuing operations excluding amortization and
federal income tax charge (benefit) $ .06 $ .12 $ .22 $ .32
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