• Filing Date: 2017-02-22
  • Form Type: 10-K
  • Description: Annual report
v3.6.0.2
Condensed Financial Information of HCI Group, Inc.
12 Months Ended
Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Financial Information of HCI Group, Inc.

Note 26 — Condensed Financial Information of HCI Group, Inc.

Condensed financial information of HCI Group, Inc. is as follows:

Balance Sheets

 

     December 31,  
     2016      2015  
Assets      

Cash and cash equivalents

   $ 2,297       $ 2,282   

Fixed-maturity securities, available for sale, at fair value

     4,483         4,307   

Equity securities, available for sale, at fair value

     7,289         6,598   

Limited partnership investments, at equity

     21,906         19,217   

Investment in subsidiaries

     411,398         361,664   

Property and equipment, net

     664         860   

Income tax receivable

     1,563         —     

Other assets

     940         784   
  

 

 

    

 

 

 

Total assets

   $ 450,540       $ 395,712   
  

 

 

    

 

 

 
Liabilities and Stockholders’ Equity      

Accrued expenses and other liabilities

   $ 2,952       $ 3,674   

Income tax payable

     —           1,279   

Deferred income taxes, net

     949         2,226   

Long-term debt

     121,436         129,429   

Due to related parties

     81,457         21,382   
  

 

 

    

 

 

 

Total liabilities

     206,794         157,990   

Total stockholders’ equity

     243,746         237,722   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 450,540       $ 395,712   
  

 

 

    

 

 

 

 

Statements of Income

 

     Years Ended December 31,  
     2016      2015      2014  

Net investment income (loss)

   $ 1,204       $ (2,401    $ 739   

Net realized gains

     151         108         309   

Other-than-temporary impairment losses

     (15      (75      —     

Gain on repurchases of convertible senior notes

     153         —           —     

Other income

     —           30         120   

Interest expense

     (10,346      (10,754      (10,453

Operating expenses

     (5,158      (7,346      (7,745
  

 

 

    

 

 

    

 

 

 

Loss before income tax benefit and equity in income of subsidiaries

     (14,011      (20,438      (17,030

Income tax benefit

     4,878         7,835         6,462   
  

 

 

    

 

 

    

 

 

 

Net loss before equity in income of subsidiaries

     (9,133      (12,603      (10,568

Equity in income of subsidiaries

     38,154         78,464         73,232   
  

 

 

    

 

 

    

 

 

 

Net income

   $ 29,021       $ 65,861       $ 62,664   
  

 

 

    

 

 

    

 

 

 

 

Statements of Cash Flows

 

 
     Years Ended December 31,  
     2016     2015     2014  

Cash flows from operating activities:

      

Net income

   $ 29,021      $ 65,861      $ 62,664   

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

      

Stock-based compensation

     2,878        4,341        5,502   

Net realized investment gains

     (151     (108     (309

Amortization of premiums on investments in fixed-maturity securities

     —          1        —     

Depreciation and amortization

     3,899        3,996        3,712   

(Income) loss from limited partnership investments

     (523     3,277        90   

Distributions from limited partnership interests

     544        12        —     

Other-than-temporary impairment losses

     15        75        —     

Gain on repurchases of convertible senior notes

     (153     —          —     

Equity in income of subsidiaries

     (38,154     (78,464     (73,232

Deferred income taxes

     (1,542     (3,218     (2,058

Changes in operating assets and liabilities:

      

Income taxes receivable

     (1,563     2,596        (814

Other assets

     (129     228        629   

Accrued expenses and other liabilities

     (716     689        1,116   

Income taxes payable

     (1,518     1,279        —     

Due to related parties

     60,075        (14,831     11,520   
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     51,983        (14,266     8,820   
  

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

      

Investment in limited partnership interest

     (2,710     (19,956     (2,640

Purchase of fixed-maturity securities

     (371     (384     (2,616

Purchase of equity securities

     (2,853     (3,196     (7,000

Purchases of property and equipment

     (202     (371     (277

Proceeds from sales of fixed-maturity securities

     423        259        —     

Proceeds from calls, repayments and maturities of fixed-maturity securities

     130        —          —     

Proceeds from sales of equity securities

     2,602        5,475        5,212   

Dividends received from subsidiary

     19,000        92,700        —     

Investment in subsidiaries

     (25,250     (78,536     (8,402
  

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (9,231     (4,009     (15,723
  

 

 

   

 

 

   

 

 

 
   
     Years Ended December 31,  
     2016     2015     2014  

Cash flows from financing activities:

      

Repurchases of common stock

     (464     (792     (643

Repurchases of common stock under share repurchase plan

     (20,026     (1,610     (38,354

Cash dividends paid to stockholders

     (12,438     (12,428     (12,355

Cash dividends received under share repurchase forward contract

     747        747        685   

Proceeds from exercise of stock options

     150        263        125   

Repurchases of convertible senior notes

     (11,347     —          —     

Redemption of Series A preferred stock

     —          —          (34

Debt issuance costs paid

     —          —          (234

Tax benefits on stock-based compensation

     641        2,295        2,080   
  

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (42,737     (11,525     (48,730
  

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     15        (29,800     (55,633

Cash and cash equivalents at beginning of year

     2,282        32,082        87,715   
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of year

   $ 2,297      $ 2,282      $ 32,082