BEDFORD, Texas, Feb. 23, 2017 /PRNewswire/ -- State National
Companies, Inc. (NASDAQ: SNC), a leading specialty provider of
property and casualty insurance services, today reported its
financial results for the fourth quarter and year ended
December 31, 2016. The Company also
raised its 2017 outlook.
Key Highlights - Fourth Quarter 2016 Financials Compared to
the Fourth Quarter 2015:
- Total revenues were $60.1
million, up 9%
- Premiums earned were $35.4
million, an increase of 7%
- Ceding fees were $20.9 million,
up 12%
- Net income was $14.1 million, an
increase of 1%
- EPS of $0.33, up from
$0.32
- EBITDA was $23.7 million, up
4%
Key Highlights – Full Year 2016 Financials Compared to the
Full Year 2015:
- Total revenues were $217.1
million, up 9%
- Premiums earned were $129.7
million, an increase of 10%
- Ceding fees were $73.3 million,
up 8%
- Net income was $49.1 million, an
increase of 10%
- EPS of $1.16, up 15%
- EBITDA was $83.2 million, up
10%
- After-tax return on equity was 17.5%
Commenting on the results, State National's Chairman and Chief
Executive Officer, Terry Ledbetter,
said, "We are pleased to report another strong quarter and full
year of performance that exceeded our guidance and generated a 10
percent increase in both net income and EBITDA in 2016 compared to
2015. These results reflect State National's proven ability to
produce strong cash flow and enhance shareholder value through our
capital efficient, fee for service business model.
"From an operational perspective, growth in our Lender and
Program Services segments led to significant earnings increase over
the prior year. In Lender Services, premiums earned grew 7 percent
in the quarter and 10 percent in 2016 compared to the prior year,
primarily due to continued growth in our existing accounts and new
accounts sales supported by solid macroeconomic drivers for car
sales and rising loan balances in 2016. In Program Services, ceding
fees grew 12 percent in the fourth quarter and 8 percent for the
year compared to last year. We continued to grow existing programs
and build new client relationships for fronting programs.
Mr. Ledbetter continued, "In 2016 we have continued to
demonstrate the ability to grow cash flow and add long-term
shareholder value. Based on our current view, we are raising our
2017 outlook."
Total revenues in the fourth quarter of 2016 were $60.1 million, up 9% from $55.3 million in the fourth quarter of
2015. Net income was $14.1
million, or $0.33 per diluted
share, in the fourth quarter of 2016, compared to net income of
$13.9 million, or $0.32 per diluted share, for the same period in
2015. Realized investment gains were $1.0
million in the fourth quarter of 2016 consistent with
$1.0 million in the fourth quarter of
2015. The impact of the realized net investment gains and losses
(net of tax) for the fourth quarter of 2016 was $0.02 per diluted share.
Total revenues for 2016 were $217.1
million, up 9% from $198.9
million in 2015. Net income was $49.1 million, or $1.16 per diluted share, in 2016, compared to net
income of $44.7 million, or
$1.01 per diluted share, in 2015.
Realized investment gains were $2.7
million in 2016 up from $1.9
million in 2015. The impact of the realized net investment
gains and losses (net of tax) for 2016 was $0.04 per diluted share.
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 marketplace.
Additionally, the Company differentiates itself from competitors by
establishing long-term relationships with clients and providing
high-quality service and advanced technology to more than 600
customers and tracking 6.4 million loans as of December 31, 2016.
Premiums earned were $35.4 million
in the fourth quarter of 2016, an increase of $2.4 million, or 7.4%, from the fourth quarter of
2015. Contributing to this increase in Lender Services premiums are
sales of new accounts, active account management, and growth in
loan portfolios of existing accounts driven by rising automobile
sales and higher average automobile loan balances.
In 2016, total revenues from the Lender Services segment were
$133.0 million, an increase of
$11.9 million, or 9.9%, from
2015. Premiums earned increased by $11.6 million, or 9.8%, to $129.7 million in 2016 from $118.1 million in 2015. This increase for 2016 in
Lender Services premiums is driven by the same factors outlined
above for the increase for the quarter.
Losses and loss adjustment expenses were $16.1 million in the fourth quarter of 2016,
compared to $14.9 million in the
same period last year. The loss ratio was largely flat while
the net expense ratio decreased to 37.1% for the fourth quarter
2016 from 38.4% in the fourth quarter 2015. This resulted in
an improved net combined ratio for the year of 82.7% compared to
83.6% in 2015.
Losses and loss adjustment expenses were $57.7 million in 2016, compared to $53.8 million in the same period last year.
The loss ratio improved to 44.5% for 2016 from 45.5% for 2015 and
the net expense ratio likewise decreased to 39.5% for 2016 from
41.0% in 2015. This resulted in an improved net combined
ratio of 84.0% for 2016 compared to 86.5% in 2015. Our
long-term objective is to manage our CPI business to achieve a net
combined ratio 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 fourth quarter of 2016, total revenues from the Program
Services segment were $20.9 million,
an increase of $2.3 million, or
12.3%, from the fourth quarter of 2015. The growth in
revenues was driven by increased ceding fees from both new and
existing client programs.
In 2016, total revenues from the Program Services segment were
$73.3 million, an increase of
$5.4 million, or 7.9%, from 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 fourth quarter of
2016 increased to $18.6 million from
$16.3 million in the fourth quarter
of 2015, reflecting investment in strategic growth, and increased
expenses associated with SOX compliance readiness and stock-based
compensation.
General and administrative expenses in 2016 increased to
$70.0 million from $63.0 million in 2015, due primarily to the same
factors outlined above for the increase for the quarter.
Balance Sheet
State National's balance sheet reflects low financial leverage
with only $43.8 million of
debt. This debt has limited covenant requirements and is
interest-only until the early to mid-2030s.
State National's investment portfolio has a short duration and
consists primarily of fixed income securities, the majority of
which have investment grade ratings. The portfolio is laddered to
allow for reinvestment of funds as rates change.
Approximately $2.3 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 $1.7
billion are secured by collateral held in trust funds for
our benefit 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 969,000 shares for $10.0
million in 2016. In total, under the program, the
Company has purchased approximately 2.8 million shares for
$27.3 million as of December 31, 2016.
2017 Outlook
State National is raising its 2017 outlook range for EPS:
- Diluted earnings per share: $1.13 to
$1.21
- The EPS projected for 2017 does not anticipate any realized
investment gains.
Conference Call
State National will host a conference call tomorrow,
February 24, 2017, at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss its fourth
quarter and full year 2016 results. To access the call live,
dial (412) 902-0030 and use the conference ID number 13654626# 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 March 3, 2017 and
may be accessed by calling (201) 612-7415 and using pass code
13654626#. Also, an archive of the webcast will be available
after the call for at least 90 days on the "Investor Relations"
section of the Company's website at http://www.statenational.com/.
Non-GAAP Reconciliation
The last page of this press release provides a reconciliation of
EBITDA, a non-GAAP financial measure, to net income, its most
directly comparable financial measure calculated and presented in
accordance with GAAP.
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.
CONTACTS:
|
State National
Companies, Inc.
|
|
David Hale, COO &
CFO
|
|
817-265-2000
|
|
|
|
Dennard • Lascar Associates
|
|
Rick Black
|
|
713-529-6600
|
STATE NATIONAL
COMPANIES, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
($ in thousands,
except for share and per share information)
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2016
|
|
2015
|
|
Assets:
|
|
(Unaudited)
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
Fixed-maturity
securities – available-for-sale, at fair value (amortized cost
– $329,994, $327,764, respectively)
|
|
$
|
332,107
|
|
$
|
329,522
|
|
Equity
securities – available-for-sale, at fair value (cost –
$3,271, $4,796, respectively)
|
|
|
3,224
|
|
|
5,544
|
|
Total
investments
|
|
|
335,331
|
|
|
335,066
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
91,698
|
|
|
51,770
|
|
Restricted cash and
investments
|
|
|
2,958
|
|
|
3,717
|
|
Accounts receivable
from agents, net
|
|
|
35,964
|
|
|
23,913
|
|
Reinsurance
recoverable on paid losses
|
|
|
1,430
|
|
|
1,187
|
|
Deferred acquisition
costs
|
|
|
1,194
|
|
|
1,075
|
|
Reinsurance
recoverables
|
|
|
2,342,864
|
|
|
1,911,660
|
|
Property and
equipment, net (includes land held for sale – $1,034, $1,034,
respectively)
|
|
|
16,163
|
|
|
17,163
|
|
Interest
receivable
|
|
|
2,112
|
|
|
2,158
|
|
Income taxes
receivable
|
|
|
329
|
|
|
3,330
|
|
Deferred income
taxes, net
|
|
|
28,858
|
|
|
26,208
|
|
Goodwill and
intangible assets, net
|
|
|
12,588
|
|
|
5,958
|
|
Other
assets
|
|
|
5,248
|
|
|
4,353
|
|
Total
assets
|
|
$
|
2,876,737
|
|
$
|
2,387,558
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
Unpaid losses and
loss adjustment expenses
|
|
$
|
1,703,706
|
|
$
|
1,364,774
|
|
Unearned
premiums
|
|
|
680,691
|
|
|
585,448
|
|
Allowance for policy
cancellations
|
|
|
66,418
|
|
|
59,610
|
|
Deferred ceding
fees
|
|
|
32,226
|
|
|
29,119
|
|
Accounts payable to
agents
|
|
|
2,639
|
|
|
2,458
|
|
Accounts payable to
insurance companies
|
|
|
14,871
|
|
|
3,801
|
|
Debt, net
|
|
|
43,783
|
|
|
43,740
|
|
Other
liabilities
|
|
|
36,023
|
|
|
35,151
|
|
Total
liabilities
|
|
|
2,580,357
|
|
|
2,124,101
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
Common stock, $.001
par value (150,000,000 shares authorized; 41,924,440 and 42,699,550
shares issued at December 31, 2016 and December 31, 2015,
respectively)
|
|
|
42
|
|
|
43
|
|
Preferred stock,
$.001 par value (10,000,000 shares authorized; no shares issued and
outstanding at December 31, 2016 and December 31,
2015)
|
|
|
—
|
|
|
—
|
|
Additional paid-in
capital
|
|
|
229,297
|
|
|
224,719
|
|
Retained
earnings
|
|
|
66,230
|
|
|
37,322
|
|
Accumulated other
comprehensive income
|
|
|
811
|
|
|
1,373
|
|
Total shareholders'
equity
|
|
|
296,380
|
|
|
263,457
|
|
Total liabilities and
shareholders' equity
|
|
$
|
2,876,737
|
|
$
|
2,387,558
|
|
STATE NATIONAL
COMPANIES, INC.
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
($ in thousands,
except for per share information)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums
earned
|
$
|
35,361
|
|
$
|
32,923
|
|
$
|
129,654
|
|
$
|
118,068
|
|
Commission
income
|
|
366
|
|
|
391
|
|
|
1,381
|
|
|
1,465
|
|
Ceding fees
|
|
20,890
|
|
|
18,596
|
|
|
73,314
|
|
|
67,956
|
|
Net investment
income
|
|
1,898
|
|
|
1,987
|
|
|
8,039
|
|
|
7,948
|
|
Realized net investment
gains (losses)
|
|
1,028
|
|
|
1,008
|
|
|
2,735
|
|
|
1,888
|
|
Other income
|
|
531
|
|
|
395
|
|
|
1,947
|
|
|
1,623
|
|
|
|
60,074
|
|
|
55,300
|
|
|
217,070
|
|
|
198,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss
adjustment expenses
|
|
16,169
|
|
|
14,798
|
|
|
58,756
|
|
|
55,753
|
|
Commissions
|
|
1,542
|
|
|
1,538
|
|
|
5,777
|
|
|
5,502
|
|
Taxes, licenses, and
fees
|
|
1,006
|
|
|
945
|
|
|
3,472
|
|
|
3,130
|
|
General and
administrative
|
|
18,637
|
|
|
16,329
|
|
|
70,014
|
|
|
62,978
|
|
Interest
expense
|
|
583
|
|
|
516
|
|
|
2,238
|
|
|
2,031
|
|
Total
expenses
|
|
37,937
|
|
|
34,126
|
|
|
140,257
|
|
|
129,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
22,137
|
|
|
21,174
|
|
|
76,813
|
|
|
69,554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax expense
(benefit)
|
|
8,791
|
|
|
3,863
|
|
|
30,083
|
|
|
25,741
|
|
Deferred tax expense
(benefit)
|
|
(750)
|
|
|
3,397
|
|
|
(2,347)
|
|
|
(853)
|
|
|
|
8,041
|
|
|
7,260
|
|
|
27,736
|
|
|
24,888
|
|
Net income
(loss)
|
$
|
14,096
|
|
$
|
13,914
|
|
$
|
49,077
|
|
$
|
44,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share attributable to common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.34
|
|
$
|
0.32
|
|
$
|
1.17
|
|
$
|
1.01
|
|
Diluted earnings per
share
|
|
0.33
|
|
|
0.32
|
|
|
1.16
|
|
|
1.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends, per
share
|
$
|
0.06
|
|
$
|
0.06
|
|
$
|
0.24
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding – basic
|
|
41,641,451
|
|
|
43,946,013
|
|
|
42,056,661
|
|
|
44,165,458
|
|
Weighted-average
common shares outstanding – diluted
|
|
42,118,789
|
|
|
44,005,264
|
|
|
42,157,710
|
|
|
44,188,593
|
|
Program Services
Segment — Results of Operations
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
December 31,
|
|
|
December 31,
|
($ in thousands)
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums
earned
|
|
$
|
—
|
|
$
|
9
|
|
|
$
|
3
|
|
$
|
(1)
|
|
Ceding fees
|
|
|
20,890
|
|
|
18,596
|
|
|
|
73,314
|
|
|
67,956
|
|
Total
revenues
|
|
|
20,890
|
|
|
18,605
|
|
|
|
73,317
|
|
|
67,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss
adjustment expenses
|
|
|
52
|
|
|
(70)
|
|
|
|
1,053
|
|
|
1,987
|
|
Commissions
|
|
|
1
|
|
|
3
|
|
|
|
6
|
|
|
5
|
|
Taxes, licenses, and
fees
|
|
|
3
|
|
|
6
|
|
|
|
16
|
|
|
14
|
|
General and
administrative
|
|
|
3,799
|
|
|
3,456
|
|
|
|
14,599
|
|
|
12,446
|
|
Total
expenses
|
|
|
3,855
|
|
|
3,395
|
|
|
|
15,674
|
|
|
14,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
$
|
17,035
|
|
$
|
15,210
|
|
|
$
|
57,643
|
|
$
|
53,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums
written
|
|
$
|
343,794
|
|
$
|
277,092
|
|
|
$
|
1,301,756
|
|
$
|
1,119,125
|
|
Gross premiums
earned
|
|
$
|
340,150
|
|
$
|
271,286
|
|
|
$
|
1,212,240
|
|
$
|
1,016,693
|
|
Lender Services
Segment — Results of Operations
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
December 31,
|
|
|
December 31,
|
($ in thousands)
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums
earned
|
|
$
|
35,361
|
|
$
|
32,914
|
|
|
$
|
129,651
|
|
$
|
118,069
|
|
Commission
income
|
|
|
366
|
|
|
391
|
|
|
|
1,381
|
|
|
1,465
|
|
Other income
|
|
|
520
|
|
|
395
|
|
|
|
1,930
|
|
|
1,498
|
|
Total
revenues
|
|
|
36,247
|
|
|
33,700
|
|
|
|
132,962
|
|
|
121,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss
adjustment expenses
|
|
|
16,117
|
|
|
14,868
|
|
|
|
57,703
|
|
|
53,766
|
|
Commissions
|
|
|
1,541
|
|
|
1,535
|
|
|
|
5,771
|
|
|
5,497
|
|
Taxes, licenses, and
fees
|
|
|
1,003
|
|
|
939
|
|
|
|
3,456
|
|
|
3,116
|
|
General and
administrative
|
|
|
10,592
|
|
|
10,156
|
|
|
|
41,989
|
|
|
39,837
|
|
Total
expenses
|
|
|
29,253
|
|
|
27,498
|
|
|
|
108,919
|
|
|
102,216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
$
|
6,994
|
|
$
|
6,202
|
|
|
$
|
24,043
|
|
$
|
18,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
ratio
|
|
|
45.6
|
%
|
|
45.2
|
%
|
|
|
44.5
|
%
|
|
45.5
|
%
|
Net expense
ratio
|
|
|
37.1
|
%
|
|
38.4
|
%
|
|
|
39.5
|
%
|
|
41.0
|
%
|
Net combined
ratio
|
|
|
82.7
|
%
|
|
83.6
|
%
|
|
|
84.0
|
%
|
|
86.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums
written
|
|
$
|
46,812
|
|
$
|
43,327
|
|
|
$
|
161,500
|
|
$
|
145,962
|
|
Net premiums
written
|
|
$
|
38,160
|
|
$
|
36,059
|
|
|
$
|
132,593
|
|
$
|
120,511
|
|
Corporate
Segment — Results of Operations
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
($ in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
|
|
$
|
1,898
|
|
$
|
1,987
|
|
$
|
8,039
|
|
$
|
7,948
|
|
|
Realized net investment
gains (losses)
|
|
|
1,028
|
|
|
1,008
|
|
|
2,735
|
|
|
1,888
|
|
|
Other income
|
|
|
11
|
|
|
—
|
|
|
17
|
|
|
125
|
|
|
Total
revenues
|
|
|
2,937
|
|
|
2,995
|
|
|
10,791
|
|
|
9,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
4,246
|
|
|
2,717
|
|
|
13,426
|
|
|
10,695
|
|
|
Interest
expense
|
|
|
583
|
|
|
516
|
|
|
2,238
|
|
|
2,031
|
|
|
Total
expenses
|
|
|
4,829
|
|
|
3,233
|
|
|
15,664
|
|
|
12,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
|
(1,892)
|
|
|
(238)
|
|
|
(4,873)
|
|
|
(2,765)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
|
8,041
|
|
|
7,260
|
|
|
27,736
|
|
|
24,888
|
|
|
Net income
(loss)
|
|
$
|
(9,933)
|
|
$
|
(7,498)
|
|
$
|
(32,609)
|
|
$
|
(27,653)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and analysts because
it provides a supplemental measure of evaluating core financial
performance between periods.
STATE NATIONAL
COMPANIES, INC.
|
Reconciliation of
Non-GAAP Financial Measures
|
(Unaudited)
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
December 31,
|
|
|
December
31
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
EBITDA
|
|
$
|
23,742
|
|
$
|
22,775
|
|
|
$
|
83,172
|
|
$
|
75,758
|
Reconciliation of
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
14,096
|
|
$
|
13,914
|
|
|
$
|
49,077
|
|
$
|
44,666
|
Plus: Interest
expense
|
|
|
583
|
|
|
516
|
|
|
|
2,238
|
|
|
2,031
|
Plus: Income tax
expense
|
|
|
8,041
|
|
|
7,260
|
|
|
|
27,736
|
|
|
24,888
|
Plus: Depreciation and
amortization
|
|
|
1,022
|
|
|
1,085
|
|
|
|
4,121
|
|
|
4,173
|
EBITDA
|
|
$
|
23,742
|
|
$
|
22,775
|
|
|
$
|
83,172
|
|
$
|
75,758
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/state-national-companies-reports-fourth-quarter-and-full-year-2016-results-300412869.html
SOURCE State National Companies, Inc.