American Independence Corp. Announces 2012 Second-Quarter and Six-Month Results
August 09 2012 - 1:22PM
American Independence Corp. (Nasdaq:AMIC) today reported 2012
second-quarter and six-month results. This press release contains
both GAAP and non-GAAP financial information for which
reconciliations can be found at the end of this release.
Financial Results
Net income increased to $0.3 million ($.04 per share, diluted),
for the three months ended June 30, 2012, compared to $0.1 million
($.02 per share, diluted), for the three months ended June 30,
2011. Revenues increased to $23.5 million for the three months
ended June 30, 2012, compared to revenues of $22.0 million for the
three months ended June 30, 2011, primarily due to an increase in
premiums.
Net income increased to $1.4 million ($.17 per share, diluted),
for the six months ended June 30, 2012, compared to $1.1 million
($.13 per share, diluted), for the six months ended June 30, 2011.
Revenues increased to $45.7 million for the six months ended June
30, 2012, compared to revenues of $43.7 million for the six months
ended June 30, 2011, primarily due to an increase in premiums.
The Company's operating income[1] for the three months ended
June 30, 2012 was $0.6 million ($.08 per share, diluted), as
compared to $0.1 million ($.02 per share, diluted) for the three
months ended June 30, 2011. Operating income was $2.2 million ($.27
per share, diluted), for the six months ended June 30, 2012, as
compared to $1.6 million ($.19 per share, diluted) for the six
months ended June 30, 2011.
Chief Executive Officer's Comments
Roy Thung, Chief Executive Officer, commented, "Net income
increased this quarter primarily due to improved underwriting
results in our fully insured segment. We continue to
experience growth and improved loss ratio results in our stop-loss
line from business underwritten by IHC Risk Solutions. We are
now approved to write pet insurance in many key states, and look
forward to recording premiums from this new line of business in the
coming months. Our financial condition and balance sheet
remain strong. We have no debt and have grown our book value
to $11.59 per share at June 30, 2012 from $11.36 per share at
December 31, 2011."
Non-GAAP Financial Measures
The Company provides non-GAAP financial measures to complement
its consolidated financial statements presented in accordance with
GAAP: (i) Operating income is net income attributable to AMIC
excluding non-cash charges related to the amortization of
intangible assets recorded in purchase accounting, net realized
investment gains (losses), and the federal income tax charge
related to deferred taxes due to its federal net operating loss
carryforwards, and (ii) Operating income per share is operating
income (loss) on a per share basis. 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.
About American Independence Corp.
AMIC, through Independence American Insurance Company and its
other subsidiaries, offers major medical for individuals and
families, medical stop-loss, small group major medical, short-term
medical, and pet insurance. AMIC provides to the individual
and self-employed markets health insurance and related products,
which are distributed through its subsidiaries, Independent
Producers of America, LLC and healthinsurance.org, LLC. AMIC
markets medical stop-loss through its marketing and administrative
company IHC Risk Solutions LLC.
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. AMIC expressly disclaims any duty to
update its forward-looking statements or earnings guidance, and
does not undertake to provide any such guidance in the future.
[1] Operating income is a non-GAAP measure and is defined as net
income attributable to AMIC excluding non-cash charges related to
the amortization of certain intangible assets recorded in purchase
accounting, net realized investment gains and losses, and the
federal income tax charge related to deferred taxes. The Company
believes that the presentation of operating income may offer a
better understanding of the core operating results of the
Company. A reconciliation of income from continuing operations
to operating income is included in this press release.
AMERICAN INDEPENDENCE
CORP. |
SECOND QUARTER
REPORT |
JUNE 30,
2012 |
(In thousands except
per share data) |
|
|
|
|
|
|
Three Months
Ended |
Six Months
Ended |
|
June
30, |
June
30, |
|
2012 |
2011 |
2012 |
2011 |
|
|
|
|
|
Premiums earned |
$ 19,334 |
$ 17,666 |
$ 37,791 |
$ 35,435 |
Fee and agency income |
3,739 |
3,583 |
6,867 |
6,899 |
Net investment income |
500 |
556 |
996 |
1,115 |
Net realized investment gains |
44 |
100 |
170 |
85 |
Other-than-temporary impairment losses |
(189) |
(20) |
(189) |
(20) |
Other income |
47 |
85 |
74 |
178 |
|
|
|
|
|
Revenues |
23,475 |
21,970 |
45,709 |
43,692 |
|
|
|
|
|
Insurance benefits, claims and
reserves |
14,266 |
12,918 |
25,957 |
23,966 |
Selling, general and administrative
expenses |
8,417 |
8,340 |
17,010 |
17,248 |
Amortization and depreciation |
45 |
217 |
90 |
431 |
|
|
|
|
|
Expenses |
22,728 |
21,475 |
43,057 |
41,645 |
|
|
|
|
|
Income before income tax |
747 |
495 |
2,652 |
2,047 |
Provision for income taxes |
196 |
71 |
804 |
566 |
|
|
|
|
|
Net income |
551 |
424 |
1,848 |
1,481 |
Less: Net income attributable to the
non-controlling interest |
(242) |
(287) |
(420) |
(407) |
|
|
|
|
|
Net income attributable to American
Independence Corp. |
$ 309 |
$ 137 |
$ 1,428 |
$ 1,074 |
|
|
|
|
|
Basic income per common
share: |
|
|
|
|
Net income attributable to American
Independence Corp. common stockholders |
$ .04 |
$ .02 |
$ .17 |
$ .13 |
|
|
|
|
|
Weighted-average shares outstanding |
8,272 |
8,520 |
8,272 |
8,516 |
|
|
|
|
|
Diluted income per common
share: |
|
|
|
|
Net income attributable to American
Independence Corp. common stockholders |
$ .04 |
$ .02 |
$ .17 |
$ .13 |
|
|
|
|
|
Weighted-average diluted shares
outstanding |
8,272 |
8,520 |
8,272 |
8,516 |
As of June 30, 2012 there were 8,272,332 common shares
outstanding, net of treasury shares.
|
AMERICAN INDEPENDENCE
CORP. |
RECONCILIATION OF GAAP
INCOME FROM CONTINUING OPERATIONS TO NON-GAAP |
INCOME FROM CONTINUING
OPERATIONS |
(In thousands except
per share data) |
|
|
|
|
|
|
Three Months
Ended |
Six Months
Ended |
|
June
30, |
June
30, |
|
2012 |
2011 |
2012 |
2011 |
|
|
|
|
|
Net income attributable to AMIC |
$ 309 |
$ 137 |
$ 1,428 |
$ 1,074 |
Amortization of intangible assets related to
purchase accounting |
30 |
34 |
64 |
67 |
Net realized investment gains |
(44) |
(100) |
(170) |
(85) |
Other-than-temporary impairment losses |
189 |
20 |
189 |
20 |
Federal income tax charge related to deferred
taxes for operating income |
152 |
52 |
710 |
516 |
|
|
|
|
|
|
|
|
|
|
Operating Income from continuing
operations |
$ 636 |
$ 143 |
$ 2,221 |
$ 1,592 |
|
|
|
|
|
Non - GAAP Basic Income Per Common
Share: |
$ .08 |
$ .02 |
$ .27 |
$ .19 |
|
|
|
|
|
Non - GAAP Diluted Income Per Common
Share: |
$ .08 |
$ .02 |
$ .27 |
$ .19 |
CONTACT: DAVID T. KETTIG
(212) 355-4141 Ext. 3047
www.americanindependencecorp.com
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