CLEARWATER, Fla., Aug. 4, 2011 (GLOBE NEWSWIRE) -- Homeowners Choice, Inc. (
Income available to common stockholders for the second quarter of 2011 was $1,940,000, or $0.30 diluted earnings per common share, compared with $1,282,000, or $0.19 diluted earnings per common share, for the second quarter of 2010. Income available to common stockholders for the six months ended June 30, 2011 was $2,716,000, or $0.43 diluted earnings per common share, compared with $1,980,000, or $0.29 diluted earnings per common share, for the six months ended June 30, 2010. Results for 2011 include a one-time bargain purchase gain of $575,000 (net of income taxes), or $0.07 and $0.08 diluted earnings per common share for the three and six months ended June 30, 2011, respectively. The gain resulted from an investment in a marina property treated as a business acquisition for accounting purposes in which the fair value of the net assets acquired exceeded the purchase price paid.
Gross premiums earned were $31.2 million for the three months ended June 30, 2011 compared with $30.0 million for the three months ended June 30, 2010. Gross premiums earned for the six months ended June 30, 2011 were $62.1 million compared with $60.3 million for the six months ended June 30, 2010. Net premiums earned (gross premiums earned reduced by premiums ceded to reinsurance companies that cover certain of the risks from hurricanes and other catastrophes) for the second quarter of 2011 increased approximately nine percent to $17.0 million from $15.6 million in the prior year quarter. Net premiums earned for the six months ended June 30, 2011 increased approximately six percent to $33.7 million from $31.9 million for the six months ended June 30, 2010.
Losses and loss adjustment expenses (the expenses associated with investigating and settling claims) for the three months ended June 30, 2011 were $10.5 million compared with $10.9 million for the three months ended June 30, 2010 and $20.9 million for the six months ended June 30, 2011 compared with $20.7 million for the six months ended June 30, 2010. Policy acquisition and other underwriting expenses for the three months ended June 30, 2011 were $2.8 million compared with $2.7 million for the three months ended June 30, 2010 and were $7.0 million for both the six months ended June 30, 2011 and June 30, 2010.
"We are pleased to report our 15th consecutive profitable quarter," said Homeowners Choice Chief Executive Officer Paresh Patel. "We have achieved growth and consistent profitability and are now a dividend-paying company. We look forward to bigger things to come."
Financial information is below.
The Company will host an earnings conference call on Thursday, Aug. 4 at 4:30 ET to discuss its second quarter 2011 results. Interested parties are invited to listen to the call live over the Internet at http://www.ir-site.com/hcpci/events.asp. The call is also available by dialing (877) 407-9210 (toll-free). International participants should instead call (201) 689-8049. Participants should dial into the conference call approximately 10 minutes before the scheduled start time. Replays of the webcast will be available until Sept. 4, 2011.
Homeowners Choice, Inc. is a Florida-based insurance holding company headquartered in Tampa. Through its subsidiary corporations, Homeowners Choice provides property and casualty homeowners' insurance, condominium owners' insurance and tenants' insurance. Founded in 2006, Homeowners Choice today serves approximately 59,500 policyholders throughout Florida representing approximately $130 million in annualized premiums. The company's common shares trade on the NASDAQ Global Select Market under the ticker symbol HCII and are included in the Russell Microcap Index. Its warrants trade on the same market under the ticker symbol HCIIW. Its Series A, 7 percent cumulative convertible preferred shares trade on the NASDAQ Capital Market under the ticker symbol HCIIP. More information about Homeowners Choice, Inc. is available at www.hcpci.com.
The Homeowners Choice, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6712
This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan" and "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. For example, there can be no assurance the company will continue profitability. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition and results of operations. Homeowners Choice, Inc. disclaims all obligations to update any forward-looking statements.
|HOMEOWNERS CHOICE, INC. AND SUBSIDIARIES|
|Condensed Consolidated Balance Sheets|
|(Dollars in thousands, except share amounts)|
|At June 30, 2011||At December 31, 2010|
|Investment in fixed maturity securities, available-for-sale, at fair value (amortized cost $23,276 and $28,456)||23,404||28,564|
|Equity securities, available-for-sale, at fair value||5,025||884|
|Cash and cash equivalents||80,256||54,849|
|Accrued interest and dividends receivable||186||180|
|Assumed reinsurance balances receivable||—||26|
|Prepaid reinsurance premiums||8,866||17,787|
|Deferred policy acquisition costs||10,062||9,407|
|Income taxes receivable||3,033||—|
|Property and equipment, net||15,778||7,755|
|Deferred income taxes||—||584|
|Total assets||$ 172,844||140,948|
|Liabilities and Stockholders' Equity|
|Losses and loss adjustment expenses||24,973||22,146|
|Deferred income taxes||1,432||—|
|Payable for securities purchased||3,002||—|
|Assumed reinsurance balances payable||51||—|
|Income taxes payable||—||310|
|7% Series A cumulative convertible preferred stock (liquidation preference $10.00 per share), no par value, 1,500,000 shares authorized, 1,247,700 shares issued and outstanding in 2011||—||—|
|Preferred stock (no par value 18,500,000 shares authorized, no shares issued or outstanding)||—||—|
|Common stock, (no par value, 40,000,000 shares authorized, 6,101,802 and 6,205,396 shares issued and outstanding in 2011 and 2010)||—||—|
|Additional paid-in capital||28,532||18,606|
|Accumulated other comprehensive loss||(58)||(42)|
|Total stockholders' equity||58,033||46,629|
|Total liabilities and stockholders' equity||$ 172,844||140,948|
|HOMEOWNERS CHOICE, INC. AND SUBSIDIARIES|
|Condensed Consolidated Statements of Earnings|
|(Dollars in thousands, except per share amounts)|
|Three Months Ended||Six Months Ended|
|June 30,||June 30,|
|Gross premiums earned||$ 31,218||29,978||$ 62,114||60,322|
|Net premiums earned||17,044||15,645||33,718||31,886|
|Net investment income||509||569||1,073||1,100|
|Realized investment gains||140||505||293||505|
|Gain on bargain purchase||936||—||936||—|
|Losses and loss adjustment expenses||10,523||10,863||20,926||20,676|
|Policy acquisition and other underwriting expenses||2,780||2,668||7,043||6,960|
|Other operating expenses||2,660||1,886||4,787||3,583|
|Income before income taxes||3,821||1,994||5,077||3,180|
|Net income||$ 2,301||1,282||$ 3,094||1,980|
|Preferred stock dividends||(361)||—||(378)||—|
|Income available to common stockholders||$ 1,940||1,282||$ 2,716||1,980|
|Basic earnings per common share||$ 0.32||0.21||$ 0.44||0.32|
|Diluted earnings per common share||$ 0.30||0.19||$ 0.43||0.29|
|Dividends per common share||$ 0.10||—||$ 0.20||—|
CONTACT: Media Contact: Suzie Boland RFB Communications Group 813.259.0345 firstname.lastname@example.org Investor Relations Contact: Jay Madhu Homeowners Choice, Inc. 727.213.3660 email@example.com