• Filing Date: 2018-03-07
  • Form Type: 10-K
  • Description: Annual report
v3.8.0.1
Condensed Financial Information of HCI Group, Inc. (Tables)
12 Months Ended
Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Balance Sheets

Balance Sheets

 

     December 31,  
     2017      2016  
Assets      

Cash and cash equivalents

   $ 53,755      $ 2,297  

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

     34,529        4,483  

Equity securities, available for sale, at fair value

     10,238        7,289  

Equity securities, trading, at fair value

     1,045        —    

Limited partnership investments, at equity

     15,232        21,906  

Note receivable – related party

     7,280        —    

Investment in subsidiaries

     310,779        411,398  

Property and equipment, net

     617        664  

Income tax receivable

     3,023        1,563  

Other assets

     1,019        940  
  

 

 

    

 

 

 

Total assets

   $ 437,517      $ 450,540  
  

 

 

    

 

 

 
Liabilities and Stockholders’ Equity      

Accrued expenses and other liabilities

   $ 4,499      $ 2,952  

Deferred income taxes, net

     2,511        949  

Long-term debt

     211,890        121,436  

Due to related parties

     24,642        81,457  
  

 

 

    

 

 

 

Total liabilities

     243,542        206,794  

Total stockholders’ equity

     193,975        243,746  
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 437,517      $ 450,540  
  

 

 

    

 

 

 

Statements of Income

Statements of Income

 

     Years Ended December 31,  
     2017     2016     2015  

Net investment income (loss)

   $ 2,799     $ 1,204     $ (2,401

Net realized gains

     367       151       108  

Net unrealized gains

     92       —         —    

Other-than-temporary impairment losses

     (209     (15     (75

Gain on repurchases of convertible senior notes

     —         153       —    

Other income

     —         —         30  

Loss on repurchases of senior notes

     (743     —         —    

Interest expense

     (15,704     (10,346     (10,754

Operating expenses

     (5,489     (5,158     (7,346
  

 

 

   

 

 

   

 

 

 

Loss before income tax benefit and equity in income of subsidiaries

     (18,887     (14,011     (20,438

Income tax benefit

     9,605       4,878       7,835  
  

 

 

   

 

 

   

 

 

 

Net loss before equity in income of subsidiaries

     (9,282     (9,133     (12,603

Equity in income of subsidiaries

     2,389       38,154       78,464  
  

 

 

   

 

 

   

 

 

 

Net (loss) income

   $ (6,893   $ 29,021     $ 65,861  
  

 

 

   

 

 

   

 

 

 
Statements of Cash Flows

Statements of Cash Flows

 

     Years Ended December 31,  
     2017     2016     2015  

Cash flows from operating activities:

      

Net (loss) income

   $ (6,893   $ 29,021     $ 65,861  

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

      

Stock-based compensation

     2,630       2,878       4,341  

Net realized investment gains

     (367     (151     (108

Net unrealized investment gains

     (92     —         —    

Amortization of premiums on investments in fixed-maturity securities

     51       —         1  

Depreciation and amortization

     6,673       3,899       3,996  

(Income) loss from limited partnership investments

     (1,354     (523     3,277  

Distributions from limited partnership interests

     881       544       12  

Other-than-temporary impairment losses

     209       15       75  

Gain on repurchases of convertible senior notes

     —         (153     —    

Loss on repurchases of senior notes

     743       —         —    

Loss from disposal of property and equipment

     17       —         —    

Equity in income of subsidiaries

     (2,389     (38,154     (78,464

Deferred income taxes

     (4,224     (1,542     (3,218

Changes in operating assets and liabilities:

      

Income taxes receivable

     (1,461     (1,563     2,596  

Other assets

     (106     (129     228  

Accrued expenses and other liabilities

     1,544       (716     689  

Income taxes payable

     —         (1,518     1,279  

Due to related parties

     (54,896     60,075       (14,831
  

 

 

   

 

 

   

 

 

 

Net cash (used in) provided by operating activities

     (59,034     51,983       (14,266
  

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

      

Investment in limited partnership interest

     (4,611     (2,710     (19,956

Investment in note receivable – related party

     (7,280     —         —    

Purchase of fixed-maturity securities

     (31,034     (371     (384

Purchase of equity securities, available for sale

     (8,939     (2,853     (3,196

Purchase of equity securities, trading

     (3,544     —         —    

Purchase of property and equipment

     (306     (202     (371

Proceeds from sales of fixed-maturity securities

     667       423       259  

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

     —         130       —    

Proceeds from sales of equity securities, available for sale

     6,262       2,602       5,475  

Proceeds from sales of equity securities, trading

     2,624       —         —    

Distributions from limited partnership interests

     11,758       —         —    

Dividends received from subsidiary

     105,000       19,000       92,700  

Investment in subsidiaries

     —         (25,250     (78,536
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     70,597       (9,231     (4,009
  

 

 

   

 

 

   

 

 

 

 

Statements of Cash Flows (Continued)

 

     Years Ended December 31,  
     2017     2016     2015  

Cash flows from financing activities:

      

Repurchases of common stock

     (30,718     (464     (792

Repurchases of common stock under share repurchase plan

     (15,154     (20,026     (1,610

Repurchases of convertible senior notes

     —         (11,347     —    

Repurchases of senior notes

     (40,250     —         —    

Debt issuance costs paid

     (4,975     —         —    

Cash dividends paid to stockholders

     (13,906     (12,438     (12,428

Cash dividends received under share repurchase forward contract

     1,073       747       747  

Proceeds from exercise of stock options

     75       150       263  

Proceeds from issuance of long-term debt

     143,750       —         —    

Tax benefits on stock-based compensation

     —         641       2,295  
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     39,895       (42,737     (11,525
  

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     51,458       15       (29,800

Cash and cash equivalents at beginning of year

     2,297       2,282       32,082  
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of year

   $ 53,755     $ 2,297     $ 2,282