American Independence Corp. Announces 2012 First-Quarter Results
May 10 2012 - 1:27PM
American Independence Corp. (Nasdaq:AMIC) today reported 2012
first-quarter results. This press release contains both GAAP and
non-GAAP financial information for which reconciliations can be
found at the end of this release.
Financial Results
Net income increased 19% to $1,119,000 ($.14 per share,
diluted), for the three months ended March 31, 2012, compared to
$937,000 ($.11 per share, diluted), for the three months ended
March 31, 2011.
The Company's operating income1 for the three months ended March
31, 2012 was $1,585,000 ($.19 per share, diluted), as compared to
$1,450,000 ($.17 per share, diluted) for the three months ended
March 31, 2011.
Revenues increased to $22,234,000 for the three months ended
March 31, 2012, compared to revenues of $21,722,000 for the three
months ended March 31, 2011, primarily due to an increase in
premiums.
Chief Executive Officer's Comments
Roy Thung, Chief Executive Officer, commented, "Net income
increased this quarter primarily due to improved underwriting
results and growth in premium from our stop-loss line, which is
largely attributable to our reorganization as a direct writer
through IHC Risk Solutions. Our fully insured segment experienced
favorable loss ratios. We are now approved to write pet
insurance in many key states, and look forward to recording
premiums from this new line of business in the coming
months. Our financial condition and balance sheet remain
strong. We have no debt and have grown our book value to
$11.48 per share at March 31, 2012 from $11.36 per share at
December 31, 2011."
Non-GAAP Financial Measures
The Company provides non-GAAP financial measures to complement
its consolidated financial statements presented in accordance with
GAAP: (i) Operating income is net income attributable to AMIC
excluding non-cash charges related to the amortization of
intangible assets recorded in purchase accounting, net realized
investment gains (losses), and the federal income tax charge
related to deferred taxes due to its federal net operating loss
carryforwards, and (ii) Operating income per share is operating
income (loss) on a per share basis. These non-GAAP financial
measures are intended to supplement the user's overall
understanding of the Company's current financial performance and
its prospects for the future. Specifically, the Company
believes the non-GAAP results provide useful information to both
management and investors by identifying certain expenses that, when
excluded from the GAAP results, may provide additional
understanding of the Company's core operating results or business
performance. However, these non-GAAP financial measures are
not intended to supersede or replace the Company's GAAP
results. A reconciliation of the non-GAAP results to the GAAP
results is provided in the "Reconciliation of GAAP Income from
Continuing Operations to Non-GAAP Income from Continuing
Operations" schedule below.
About American Independence Corp.
AMIC, through Independence American Insurance Company and its
other subsidiaries, offers major medical for individuals and
families, medical stop-loss, small group major medical, short-term
medical, and pet insurance. AMIC provides to the individual
and self-employed markets health insurance and related products,
which are distributed through its subsidiaries, Independent
Producers of America, LLC and healthinsurance.org, LLC. AMIC
markets medical stop-loss through its marketing and administrative
company IHC Risk Solutions LLC.
Certain statements in this news release may be considered
forward-looking statements, such as statements relating to
management's views with respect to future events and financial
performance. Such forward-looking statements are subject to
risks, uncertainties and other factors which could cause actual
results to differ materially from historical experience or from
future results expressed or implied by such forward-looking
statements. Potential risks and uncertainties include, but are
not limited to, economic conditions in the markets in which AMIC
operates, new federal or state governmental regulation, AMIC's
ability to effectively operate, integrate and leverage any past or
future strategic acquisition, and other factors which can be found
in AMIC's other news releases and filings with the Securities and
Exchange Commission. AMIC expressly disclaims any duty to
update its forward-looking statements or earnings guidance, and
does not undertake to provide any such guidance in the future.
1 Operating income is a non-GAAP measure and is defined as net
income attributable to AMIC excluding non-cash charges related to
the amortization of certain intangible assets recorded in purchase
accounting, net realized investment gains and losses, and the
federal income tax charge related to deferred taxes. The Company
believes that the presentation of operating income may offer a
better understanding of the core operating results of the
Company. A reconciliation of income from continuing operations
to operating income is included in this press release.
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AMERICAN INDEPENDENCE
CORP. |
FIRST QUARTER
REPORT |
March 31,
2012 |
(In thousands except
per share data) |
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Three Months
Ended March 31, |
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2012 |
2011 |
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Premiums earned |
$ 18,457 |
$ 17,769 |
MGU and agency income |
3,128 |
3,316 |
Net investment income |
496 |
559 |
Net realized investment gains (losses) |
126 |
(15) |
Other income |
27 |
93 |
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Revenues |
22,234 |
21,722 |
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Insurance benefits, claims and
reserves |
11,691 |
11,048 |
Selling, general and administrative
expenses |
8,593 |
8,908 |
Amortization and depreciation |
45 |
214 |
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Expenses |
20,329 |
20,170 |
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Income before income tax |
1,905 |
1,552 |
Provision for income taxes |
608 |
495 |
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Net income |
1,297 |
1,057 |
Less: Net income attributable to the
non-controlling interest |
(178) |
(120) |
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Net income attributable to American
Independence Corp. |
$ 1,119 |
$ 937 |
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Basic income per common
share: |
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Net income attributable to American
Independence Corp. common stockholders |
$ .14 |
$ .11 |
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Weighted-average shares outstanding |
8,272 |
8,511 |
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Diluted income per common
share: |
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Net income attributable to American
Independence Corp. common stockholders |
$ .14 |
$ .11 |
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Weighted-average diluted shares
outstanding |
8,272 |
8,511 |
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As of March 31, 2012 there were 8,272,332 common shares
outstanding, net of treasury shares.
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AMERICAN INDEPENDENCE
CORP. |
RECONCILIATION OF GAAP
INCOME FROM CONTINUING OPERATIONS TO NON-GAAP INCOME FROM
CONTINUING OPERATIONS |
(In thousands except
per share data) |
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Three Months
Ended March 31, |
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2012 |
2011 |
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Net income attributable to AMIC |
$ 1,119 |
$ 937 |
Amortization of intangible assets related to
purchase accounting |
34 |
34 |
Net realized investment (gains) losses |
(126) |
15 |
Federal income tax charge related to deferred
taxes for operating income |
558 |
464 |
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Operating income from continuing
operations |
$ 1,585 |
$ 1,450 |
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Non - GAAP Basic Income Per Common
Share: |
$ .19 |
$ .17 |
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Non - GAAP Diluted Income Per Common
Share: |
$ .19 |
$ .17 |
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CONTACT: DAVID T. KETTIG
(212) 355-4141 Ext. 3047
www.americanindependencecorp.com
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