PICO Holdings, Inc. Announces Results for the Second Quarter of 2018
August 08 2018 - 4:30PM
PICO Holdings, Inc. (NASDAQ:PICO) reported results for
the second quarter ended June 30, 2018. Our
reported shareholders’ equity was $196 million ($8.90 per share) at
June 30, 2018, compared to $207.2 million ($8.95 per share) at
December 31, 2017.
Second Quarter Segment Results of
Operations
For the second quarter of 2018, we reported net
income of $4.3 million ($0.19 per share), compared to net income of
$1.6 million ($0.07 per share) in the second quarter of 2017.
Our second quarter results of operations were as follows (in
thousands):
|
Three Months Ended June 30, |
|
2018 |
|
2017 |
Total
revenue |
$ |
10,612 |
|
|
$ |
8,634 |
|
Total
cost and expenses |
6,281 |
|
|
2,885 |
|
Income from continuing
operations before income taxes |
4,331 |
|
|
5,749 |
|
Provision
for federal and state income taxes |
(72 |
) |
|
(2,946 |
) |
Income from continuing
operations |
4,259 |
|
|
2,803 |
|
Net
income from discontinued operations, net of tax |
43 |
|
|
177 |
|
Net income |
4,302 |
|
|
2,980 |
|
Net
income attributable to noncontrolling interests |
— |
|
|
(1,405 |
) |
Net income attributable
to PICO Holdings, Inc. |
$ |
4,302 |
|
|
$ |
1,575 |
|
|
|
|
|
|
|
|
|
First Six Month Segment Results of
Operations
For the first six months of 2018, we reported
net income of $1.4 million ($0.06 per share), compared to net
income of $6.2 million ($0.27 per share) in the first six months of
2017. Our six months results of operations were as follows
(in thousands):
|
Six Months Ended June 30, |
|
2018 |
|
2017 |
Total
revenue |
$ |
10,956 |
|
|
$ |
34,827 |
|
Total
cost and expenses |
9,487 |
|
|
19,605 |
|
Income from continuing
operations before income taxes |
1,469 |
|
|
15,222 |
|
Provision
for federal and state income taxes |
(72 |
) |
|
(3,126 |
) |
Income from continuing
operations |
1,397 |
|
|
12,096 |
|
Net
income (loss) from discontinued operations, net of tax |
43 |
|
|
(3,081 |
) |
Net income |
1,440 |
|
|
9,015 |
|
Net
income attributable to noncontrolling interests |
— |
|
|
(2,796 |
) |
Net income attributable
to PICO Holdings, Inc. |
$ |
1,440 |
|
|
$ |
6,219 |
|
|
|
|
|
|
|
|
|
Net Operating Loss
Carryforwards
At December 31, 2017, we had approximately
$185.5 million of (pre-tax) federal net operating loss
carryforwards, or NOLs, that could be utilized in certain
circumstances to offset PICO’s taxable income and reduce its
federal income tax liability. Additional information with
respect to these NOLs is contained in our Annual Report on Form
10-K for the year ended December 31, 2017 that we filed with
the Securities and Exchange Commission.
About PICO Holdings, Inc.
As of June 30, 2018, our major investment
was Vidler Water Company, Inc., a water resource and water storage
business with assets and operations primarily in the Southwestern
U.S.
Currently, we believe the highest potential
return to shareholders is from a return of capital to shareholders.
As we monetize assets, rather than reinvest the proceeds, we intend
to return the capital derived therefrom, less any working capital
requirements, back to shareholders through a stock repurchase
program or by other means such as special dividends taking into
effect liquidity requirements, debt covenants and any other
contractual and legal restrictions that may exist at the time.
OTHER INFORMATION
At June 30, 2018, we had a market
capitalization of $256.5 million, and 22,020,168 shares
outstanding.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
Statements in this press release that are not
historical, including statements regarding our business objectives,
our ability to monetize our water resources, our ability to
preserve and utilize NOLs to offset taxable income and reduce our
federal income liability, and our ability to monetize assets and
return capital to shareholders through stock repurchases or through
other means, are forward-looking statements based on current
expectations and assumptions that are subject to risks and
uncertainties.
In addition, a number of other factors may cause
results to differ materially from our expectations, such as: any
slow down or downturn in the housing recovery or in the real estate
markets in which Vidler operates; fluctuations in the prices of
water and water rights; physical, governmental and legal
restrictions on water and water rights; a downturn in some sectors
of the stock market; general economic conditions; prolonged
weakness in the overall U.S. and global economies; the performance
of the businesses; the continued service and availability of key
management personnel; and potential capital requirements and
financing alternatives.
For further information regarding risks and
uncertainties associated with our business, please refer to the
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” and “Risk Factors” sections of our SEC
filings, including our Annual Report on Form 10-K and our Quarterly
Reports on Form 10-Q, copies of which may be obtained by contacting
us at (858) 456-6022 or at http://investors.picoholdings.com.
We undertake no obligation to (and we expressly
disclaim any obligation to) update our forward-looking statements,
whether as a result of new information, subsequent events, or
otherwise, in order to reflect any event or circumstance which may
arise after the date of this press release, except as may otherwise
be required by law. Readers are urged not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release.
This news release was distributed by
GlobeNewswire, www.globenewswire.com.
CONTACT:Max WebbExecutive Chairman(858)
652-4114
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