• Filing Date: 2013-03-14
  • Form Type: 10-K
  • Description: Annual report
v2.4.0.6
Condensed Financial Information of Homeowners Choice, Inc.
12 Months Ended
Dec. 31, 2012
Condensed Financial Information of Homeowners Choice, Inc [Abstract]  
Condensed Financial Information of Homeowners Choice, Inc

Note 17 — Condensed Financial Information of Homeowners Choice, Inc.

Condensed financial information of Homeowners Choice, Inc. is as follows:

Balance Sheets

 

                 
    December 31,  
    2012     2011  
    (in thousands)  

Assets

               

Cash and cash equivalents

  $ 6,317       1  

Investment in subsidiaries

    140,563       88,421  

Property and equipment, net

    1,293       950  

Income tax receivable

    2,379       —    

Deferred income taxes

    —         348  

Other assets

    916       1,428  
   

 

 

   

 

 

 

Total assets

  $ 151,468       91,148  
   

 

 

   

 

 

 
     

Liabilities and Stockholders’ Equity

               

Accrued expenses and other liabilities

  $ 727       1,778  

Income taxes payable

    —         1,605  

Deferred income taxes

    415       —    

Dividends payable

    42       218  

Due to related parties

    29,031       23,717  
   

 

 

   

 

 

 

Total liabilities

    30,215       27,318  
   

 

 

   

 

 

 

Total stockholders’ equity

    121,253       63,830  
   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

  $ 151,468       91,148  
   

 

 

   

 

 

 

Statements of Income

 

                         
    
    Years Ended December 31,  
    2012     2011     2010  
    (in thousands)  
       

Net investment income

  $ 8       75       80  

Other income

    144       66       45  

Operating expenses

    (2,812     (2,428     (1,427
   

 

 

   

 

 

   

 

 

 

Loss before income tax benefit and equity in income of subsidiaries

    (2,660     (2,287     (1,302

Income tax benefit

    750       846       485  
   

 

 

   

 

 

   

 

 

 

Net loss before equity in income of subsidiaries

    (1,910     (1,441     (817

Equity in income of subsidiaries

    32,067       11,405       6,239  
   

 

 

   

 

 

   

 

 

 
       

Net income

  $ 30,157       9,964       5,422  
   

 

 

   

 

 

   

 

 

 

Statements of Cash Flows

 

                         
    Years Ended December 31,  
    2012     2011     2010  
    (in thousands)  

Cash flows from operating activities:

                       

Net income

  $ 30,157       9,964       5,422  

Adjustments to reconcile net income to net cash provided by operating activities:

                       

Stock-based compensation

    237       27       87  

Depreciation and amortization

    788       214       84  

Equity in income of subsidiaries

    (32,067     (11,405     (6,239

Deferred income taxes

    763       (83     136  

Changes in operating assets and liabilities:

                       

Income taxes receivable

    (2,379     —         674  

Other assets

    84       (348     (226

Accrued expenses and other liabilities

    (1,051     1,488       38  

Income taxes payable

    (1,605     (1,957     3,562  

Due to related parties

    5,314       10,489       6,267  
   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

    241       8,389       9,805  
   

 

 

   

 

 

   

 

 

 
       

Cash flows from investing activities:

                       

Purchases of short-term investments

    —         —         (80

Redemption of short-term investments

    —         2,074       —    

Purchases of property and equipment

    (668     (900     (44

Dividends received from subsidiary

    6,000       —         4,800  

Investment in subsidiaries

    (24,056     (16,400     (9,889
   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

    (18,724     (15,226     (5,213
   

 

 

   

 

 

   

 

 

 
       

Cash flows from financing activities:

                       

Net proceeds from the issuance of common stock

    20,082       —         —    

Repurchases of common stock

    —         (1,887     (3,596

Dividends paid to stockholders

    (8,561     (3,827     (1,877

Proceeds from exercise of stock options

    283       564       650  

Proceeds from exercise of stock warrants

    11,869       —         —    

Proceeds from sale of preferred stock, net of costs

    —         11,307       —    

Debt issuance costs paid

    (35     —         —    

Excess tax benefits from stock options exercised

    1,161       265       301  
   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

    24,799       6,422       (4,522
   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

    6,316       (415     70  

Cash and cash equivalents at beginning of year

    1       416       346  
   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of year

  $ 6,317       1       416