TIPT Tiptree Inc

• Revenues of $299.7 million, an increase of 50.4% from second quarter 2020. Year-to-date revenues of $594.4 million, an increase of 80.7%, driven by growth in insurance and mortgage operations and net realized and unrealized gains in 2021 period compared to losses in 2020 period. Excluding the impact from investment gains and losses, year-to-date revenues increased 34.9% versus prior year.

• Net income for the quarter was $8.0 million, an increase from $3.8 million in 2020. Year-to-date net income of $36.6 million, representing a 20.4% annualized ROAE.

• Adjusted net income of $13.1 million for the quarter, an increase of 24.7% from prior year. Year-to-date adjusted net income of $26.3 million, an increase of 50.7%, driven by improvement in insurance, mortgage and shipping operations. Year-to-date annualized Adjusted ROAE of 13.5%, compared to 9.2% in the prior year period.

• Book value per share of $11.59 as of June 30, 2021, when combined with dividends paid of $0.16 per share, increased 17.9% from the prior year.

• Declared a dividend of $0.04 per share to stockholders of record on August 23, 2021 with a payment date of August 30, 2021.

Tiptree Inc. (NASDAQ:TIPT) (“Tiptree” or the “Company”), a holding company that combines specialty insurance operations with investment management, today announced its financial results for the three and six months ended June 30, 2021.

“Our second-quarter performance was a continuation of positive trends we have experienced over the past year,” said Tiptree Executive Chairman, Michael Barnes. “Fortegra had an extremely strong first half with premium and equivalents growth of 51% while maintaining best-in-class profitability. We continue to believe in the strength of the platform and its ability to produce growth and returns in excess of its peers over the long-term.”

Barnes added, “Our mortgage business had another excellent quarter as the rate environment and home price appreciation continue to be tailwinds. Our shipping business also showed positive results for the quarter based on persistent favorable market conditions, particularly in the dry-bulk sector. Overall, we believe Tiptree is well positioned for the second half of 2021 and going forward.”

($ in thousands, except per share information)

Three Months Ended June 30,

 

Six Months Ended June 30,

 

GAAP:

2021

 

2020

 

2021

 

2020

 

Total revenues

$

299,687

 

 

$

199,194

 

 

$

594,375

 

 

$

328,865

 

 

Net income (loss) attributable to common stockholders

$

7,969

 

 

$

3,816

 

 

$

36,550

 

 

$

(56,191)

 

 

Diluted earnings per share

$

0.22

 

 

$

0.10

 

 

$

1.05

 

 

$

(1.64)

 

 

Cash dividends paid per common share

$

0.04

 

 

$

0.04

 

 

$

0.08

 

 

$

0.08

 

 

Return on average equity

9.0

%

 

5.1

%

 

20.4

%

 

(29.6)

%

 

 

 

 

 

 

 

 

 

 

Non-GAAP: (1)

 

 

 

 

 

 

 

 

Adjusted net income

$

13,125

 

 

$

10,526

 

 

$

26,280

 

 

$

17,433

 

 

Adjusted return on average equity

13.1

%

 

12.2

%

 

13.5

%

 

9.2

%

 

Book value per share

$

11.59

 

 

$

9.97

 

 

$

11.59

 

 

$

9.97

 

 

____________________________

(1) For information relating to Adjusted net income, Adjusted return on average equity and book value per share, including a reconciliation to GAAP financials, see “—Non-GAAP Reconciliations” below.

Earnings Conference Call

Tiptree will host a conference call on Thursday, August 5, 2021 at 9:00 a.m. Eastern Time to discuss its second quarter 2021 financial results. A copy of our investor presentation, to be used during the conference call, as well as this press release, will be available in the Investor Relations section of the Company’s website, located at www.tiptreeinc.com.

The conference call will be available via live or archived webcast at http://www.investors.tiptreeinc.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. To participate in the telephone conference call, please dial 1-877-407-4018 (domestic) or 1-201-689-8471 (international). Please dial in at least five minutes prior to the start time.

A replay of the call will be available from Thursday, August 5, 2021 at 1:00 p.m. Eastern Time, until midnight Eastern on Thursday, August 12, 2021. To listen to the replay, please dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international), Passcode: 13720336.

Segment Financial Highlights - Second Quarter and Year-to-date 2021

Insurance (Fortegra Group):

• The Fortegra Group crossed a significant milestone with over $2.0 billion in trailing twelve month gross written premiums and premium equivalents (GWPPE), delivering a 23.8% CAGR since 2017.

• GWPPE of $571.5 million in the second quarter, an increase of 79.2% from the prior year period. Year-to-date GWPPE of $1,076.5 million, up 51.3%, driven by robust 49.6% organic growth across all lines of business.

• Total revenues of $252.3 million, up 52.9% compared to second quarter 2020. Year-to-date revenues of $474.8 million, up 54.0%, driven by growth in domestic admitted and surplus insurance lines, as well as continued growth in fee-based warranty programs. Excluding the impact of realized and unrealized gains and losses, revenues increased by 37.5% over the prior year-to-date period.

• The combined ratio for the quarter was 92.1%, consistent with the prior year. The year-to-date 2021 combined ratio was 91.8%, compared to 92.9% in the prior year period. Technology efficiencies contributed to an improved expense ratio, while the underwriting ratio remained stable.

• Income before taxes of $14.7 million, up 4.4% as compared to second quarter 2020. Year-to-date 2021 income before taxes of $36.2 million compared to a loss before taxes of $13.0 million for the prior year period. Annualized return on average equity was 19.4% for year-to-date 2021, as compared to (5.9)% in 2020.

• Adjusted net income for the quarter was $14.1 million, up 56.8% from the prior year period. Adjusted net income year-to-date was $26.9 million, up 51.6%, driven by revenue growth and an improved combined ratio. The adjusted return on average equity was 18.3% for year-to-date 2021, as compared to 12.8% in 2020.

• The combination of unearned premiums and deferred revenues on the balance sheet of $1,441.1 million grew by $408.5 million, or 39.6%, from June 30, 2020 to June 30, 2021 as a result of Fortegra’s growth in GWPPE.

Mortgage:

• Income before taxes of $5.8 million compared to $7.4 million second quarter 2020. Year-to-date income before taxes of $18.9 million, as compared to $6.3 million in the prior year.

• Adjusted net income of $11.5 million, an increase of $3.9 million from second quarter 2020. The increase was driven by growth in volumes and margins resulting from reduced interest rates and home price appreciation. Adjusted return on average equity was 34.3%.

Results by Segment

We classify our business into two reportable segments, Insurance and Mortgage, with the remainder of our operations aggregated into Tiptree Capital - Other. Corporate activities include holding company interest expense, corporate employee compensation and benefits, and other expenses, including, but not limited to, public company expenses. The following table present summary financial data for the three and six months ended June 30, 2021 and 2020.

 

($ in thousands)

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

Revenues:

 

 

 

 

 

 

 

Insurance

$

252,255

 

 

$

164,954

 

 

$

474,818

 

 

$

308,294

 

Mortgage

25,272

 

 

28,812

 

 

59,766

 

 

45,032

 

Tiptree Capital - other

22,160

 

 

5,428

 

 

59,791

 

 

(24,461)

 

Corporate

—

 

 

—

 

 

—

 

 

—

 

Total revenues

$

299,687

 

 

$

199,194

 

 

$

594,375

 

 

$

328,865

 

 

 

 

 

 

 

 

 

Income (loss) before taxes:

 

 

 

 

 

 

 

Insurance

$

14,704

 

 

$

14,088

 

 

$

36,232

 

 

$

(13,029)

 

Mortgage

5,775

 

 

7,405

 

 

18,852

 

 

6,315

 

Tiptree Capital - other

2,620

 

 

(9,188)

 

 

17,614

 

 

(54,429)

 

Corporate

(11,624)

 

 

(7,871)

 

 

(21,831)

 

 

(16,174)

 

Total income (loss) before taxes

$

11,475

 

 

$

4,434

 

 

$

50,867

 

 

$

(77,317)

 

 

 

 

 

 

 

 

 

Non-GAAP - Adjusted net income:

 

 

 

 

 

 

 

Insurance

$

14,091

 

 

$

8,988

 

 

$

26,867

 

 

$

17,724

 

Mortgage

4,059

 

 

7,427

 

 

11,524

 

 

7,623

 

Tiptree Capital - other

2,064

 

 

(221)

 

 

2,631

 

 

3,070

 

Corporate

(7,089)

 

 

(5,668)

 

 

(14,742)

 

 

(10,984)

 

Total adjusted net income (1)

$

13,125

 

 

$

10,526

 

 

$

26,280

 

 

$

17,433

 

(1)

For further information relating to the Company’s Adjusted net income, including a reconciliation to GAAP income (loss) before taxes, see “—Non-GAAP Reconciliations.”

The table below provides a break down between net realized and unrealized gains and losses from Invesque and other securities which impacted our consolidated results on a pre-tax basis. Many of our investments are carried at fair value and marked to market through unrealized gains and losses. As a result, we expect our earnings relating to these investments to be relatively volatile between periods. Our fixed income securities are primarily marked to market through AOCI in stockholders’ equity and do not impact net realized and unrealized gains and losses until they are sold.

($ in thousands)

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

Net realized and unrealized gains (losses)(1)

$

3,397

 

 

$

6,211

 

 

$

13,612

 

 

$

(18,580)

 

Net realized and unrealized gains (losses) - Invesque

$

169

 

 

$

(11,891)

 

 

$

16,812

 

 

$

(70,604)

 

(1) Excludes Invesque and Mortgage realized and unrealized gains and losses.

Non-GAAP

Management uses Adjusted net income and book value per share as measurements of operating performance. Management believes these measures provide supplemental information useful to investors as they are frequently used by the financial community to analyze financial performance and comparison among companies. Management uses Adjusted net income and adjusted return on average equity as part of its capital allocation process and to assess comparative returns on invested capital. Adjusted net income represents income before taxes, less provision (benefit) for income taxes, and excluding the after-tax impact of various expenses that we consider to be unique and non-recurring in nature, stock-based compensation, net realized and unrealized gains (losses), and intangibles amortization associated with purchase accounting. Adjusted net income and Adjusted return on average equity are not measurements of financial performance or liquidity under GAAP and should not be considered as an alternative or substitute for GAAP net income. See “Non-GAAP Reconciliations” for a reconciliation of these measures to their GAAP equivalents.

About Tiptree

Tiptree Inc. (NASDAQ: TIPT) is a holding company that allocates capital across a broad spectrum of businesses, assets and other investments. Our principal operating business, Fortegra, is a specialty insurance underwriter and service provider, which focuses on niche business lines and fee-oriented services. We also allocate capital to a diverse group of businesses and investments that we refer to as Tiptree Capital. For more information, please visit www.tiptreeinc.com.

Forward-Looking Statements

This release contains “forward-looking statements” which involve risks, uncertainties and contingencies, many of which are beyond the Company’s control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “should,” “target,” “will,” or similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations for our businesses and intentions. The forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, many of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecast in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to those described in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K, and as described in the Company’s other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date of this release. The factors described therein are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could affect our forward-looking statements. Consequently, our actual performance could be materially different from the results described or anticipated by our forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by the federal securities laws, we undertake no obligation to update any forward-looking statements.

 

Tiptree Inc.

Condensed Consolidated Balance Sheets

($ in thousands, except share data)

 

 

As of

 

June 30, 2021

 

December 31, 2020

Assets:

 

 

 

Investments:

 

 

 

Available for sale securities, at fair value, net of allowance for credit losses

$

447,300

 

 

$

377,133

 

Loans, at fair value

97,405

 

 

90,732

 

Equity securities

204,539

 

 

123,838

 

Other investments

206,188

 

 

219,701

 

Total investments

955,432

 

 

811,404

 

Cash and cash equivalents

141,661

 

 

136,920

 

Restricted cash

36,275

 

 

58,355

 

Notes and accounts receivable, net

394,348

 

 

370,452

 

Reinsurance receivables

762,751

 

 

728,009

 

Deferred acquisition costs

306,622

 

 

229,430

 

Goodwill

179,236

 

 

179,236

 

Intangible assets, net

130,429

 

 

138,215

 

Other assets

164,455

 

 

162,034

 

Assets held for sale

140,348

 

 

181,705

 

Total assets

$

3,211,557

 

 

$

2,995,760

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Liabilities:

 

 

 

Debt, net

$

381,871

 

 

$

366,246

 

Unearned premiums

968,580

 

 

860,690

 

Policy liabilities and unpaid claims

285,640

 

 

233,438

 

Deferred revenue

472,610

 

 

399,211

 

Reinsurance payable

230,590

 

 

224,660

 

Other liabilities and accrued expenses

333,935

 

 

362,865

 

Liabilities held for sale

133,282

 

 

175,112

 

Total liabilities

$

2,806,508

 

 

$

2,622,222

 

 

 

 

 

Stockholders’ Equity:

 

 

 

Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued or outstanding

$

—

 

 

$

—

 

Common stock: $0.001 par value, 200,000,000 shares authorized, 33,395,395 and 32,682,462 shares issued and outstanding, respectively

33

 

 

33

 

Additional paid-in capital

314,983

 

 

315,014

 

Accumulated other comprehensive income (loss), net of tax

2,689

 

 

5,674

 

Retained earnings

69,313

 

 

35,423

 

Total Tiptree Inc. stockholders’ equity

387,018

 

 

356,144

 

Non-controlling interests

18,031

 

 

17,394

 

Total stockholders’ equity

405,049

 

 

373,538

 

Total liabilities and stockholders’ equity

$

3,211,557

 

 

$

2,995,760

 

 

Tiptree Inc.

Condensed Consolidated Statements of Operations

($ in thousands, except share data)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

Revenues:

 

 

 

 

 

 

 

Earned premiums, net

$

176,958

 

 

$

107,255

 

 

$

323,877

 

 

$

228,576

 

Service and administrative fees

63,700

 

 

42,865

 

 

121,750

 

 

86,589

 

Ceding commissions

3,080

 

 

4,535

 

 

6,105

 

 

11,060

 

Net investment income

3,234

 

 

2,292

 

 

6,001

 

 

5,780

 

Net realized and unrealized gains (losses)

36,092

 

 

30,110

 

 

105,463

 

 

(32,331)

 

Other revenue

16,623

 

 

12,137

 

 

31,179

 

 

29,191

 

Total revenues

299,687

 

 

199,194

 

 

594,375

 

 

328,865

 

Expenses:

 

 

 

 

 

 

 

Policy and contract benefits

89,193

 

 

49,147

 

 

156,367

 

 

110,023

 

Commission expense

99,543

 

 

67,903

 

 

188,188

 

 

138,304

 

Employee compensation and benefits

45,693

 

 

40,678

 

 

98,617

 

 

79,179

 

Interest expense

8,981

 

 

7,646

 

 

18,233

 

 

15,197

 

Depreciation and amortization

6,208

 

 

4,371

 

 

12,142

 

 

8,234

 

Other expenses

38,594

 

 

25,015

 

 

69,961

 

 

55,245

 

Total expenses

288,212

 

 

194,760

 

 

543,508

 

 

406,182

 

Income (loss) before taxes

11,475

 

 

4,434

 

 

50,867

 

 

(77,317)

 

Less: provision (benefit) for income taxes

2,427

 

 

(5)

 

 

11,179

 

 

(21,186)

 

Net income (loss)

9,048

 

 

4,439

 

 

39,688

 

 

(56,131)

 

Less: net income (loss) attributable to non-controlling interests

1,079

 

 

623

 

 

3,138

 

 

60

 

Net income (loss) attributable to common stockholders

$

7,969

 

 

$

3,816

 

 

$

36,550

 

 

$

(56,191)

 

 

 

 

 

 

 

 

 

Net income (loss) per common share:

 

 

 

 

 

 

 

Basic earnings per share

$

0.24

 

 

$

0.11

 

 

$

1.10

 

 

$

(1.64)

 

Diluted earnings per share

$

0.22

 

 

$

0.10

 

 

$

1.05

 

 

$

(1.64)

 

 

 

 

 

 

 

 

 

Weighted average number of common shares:

 

 

 

 

 

 

 

Basic

32,898,769

 

 

33,984,195

 

 

32,661,195

 

 

34,269,096

 

Diluted

33,567,897

 

 

33,984,195

 

 

34,842,812

 

 

34,269,096

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

0.04

 

 

$

0.04

 

 

$

0.08

 

 

$

0.08

 

Tiptree Inc. Non-GAAP Reconciliations (Unaudited)

Non-GAAP Financial Measures — Adjusted net income and Adjusted return on average equity

The Company defines Adjusted net income as income before taxes, less provision (benefit) for income taxes, and excluding the after-tax impact of various expenses that we consider to be unique and non-recurring in nature, including merger and acquisition related expenses, stock-based compensation, net realized and unrealized gains (losses) and intangibles amortization associated with purchase accounting. We use adjusted net income as an internal operating performance measure in the management of business as part of our capital allocation process. We believe adjusted net income provides useful supplemental information to investors as it is frequently used by the financial community to analyze financial performance between periods and for comparison among companies. Adjusted net income should not be viewed as a substitute for income before taxes calculated in accordance with GAAP, and other companies may define adjusted net income differently.

We define Adjusted return on average equity as Adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholder’s equity during the period. We use Adjusted return on average equity as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted return on average equity should not be viewed as a substitute for return on average equity calculated in accordance with GAAP, and other companies may define adjusted return on average equity differently.

 

Three Months Ended June 30, 2021

 

 

 

Tiptree Capital

 

 

 

 

($ in thousands)

Insurance

 

Mortgage

 

Other

 

Corporate

 

Total

Income (loss) before taxes

$

14,704

 

 

$

5,775

 

 

$

2,620

 

 

$

(11,624)

 

 

$

11,475

 

Less: Income tax (benefit) expense

(3,334)

 

 

(1,366)

 

 

(34)

 

 

2,307

 

 

(2,427)

 

Less: Net realized and unrealized gains (losses)(1)

(2,808)

 

 

(600)

 

 

(142)

 

 

—

 

 

(3,550)

 

Plus: Intangibles amortization (2)

3,835

 

 

—

 

 

—

 

 

—

 

 

3,835

 

Plus: Stock-based compensation expense

500

 

 

166

 

 

4

 

 

479

 

 

1,149

 

Plus: Non-recurring expenses

1,834

 

 

—

 

 

281

 

 

2,171

 

 

4,286

 

Plus: Non-cash fair value adjustments

—

 

 

—

 

 

(695)

 

 

—

 

 

(695)

 

Less: Tax on adjustments

(640)

 

 

84

 

 

30

 

 

(422)

 

 

(948)

 

Adjusted net income

$

14,091

 

 

$

4,059

 

 

$

2,064

 

 

$

(7,089)

 

 

$

13,125

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

$

14,091

 

 

$

4,059

 

 

$

2,064

 

 

$

(7,089)

 

 

$

13,125

 

Average stockholders’ equity

$

281,041

 

 

$

72,364

 

 

$

121,129

 

 

$

(73,310)

 

 

$

401,223

 

Adjusted return on average equity

20.1

%

 

22.4

%

 

6.8

%

 

NM%

 

13.1

%

 

Three Months Ended June 30, 2020

 

 

 

Tiptree Capital

 

 

 

 

($ in thousands)

Insurance

 

Mortgage

 

Other

 

Corporate

 

Total

Income (loss) before taxes

$

14,088

 

 

$

7,405

 

 

$

(9,188)

 

 

$

(7,871)

 

 

$

4,434

 

Less: Income tax (benefit) expense

(2,785)

 

 

(1,746)

 

 

2,059

 

 

2,477

 

 

5

 

Less: Net realized and unrealized gains (losses)(1)

(5,635)

 

 

1,471

 

 

9,841

 

 

—

 

 

5,677

 

Plus: Intangibles amortization (2)

2,534

 

 

—

 

 

—

 

 

—

 

 

2,534

 

Plus: Stock-based compensation expense

492

 

 

896

 

 

7

 

 

657

 

 

2,052

 

Plus: Non-recurring expenses

44

 

 

—

 

 

—

 

 

41

 

 

85

 

Plus: Non-cash fair value adjustments

—

 

 

—

 

 

(871)

 

 

—

 

 

(871)

 

Less: Tax on adjustments

250

 

 

(599)

 

 

(2,069)

 

 

(972)

 

 

(3,390)

 

Adjusted net income

$

8,988

 

 

$

7,427

 

 

$

(221)

 

 

$

(5,668)

 

 

$

10,526

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

$

8,988

 

 

$

7,427

 

 

$

(221)

 

 

$

(5,668)

 

 

$

10,526

 

Average stockholders’ equity

$

279,013

 

 

$

36,646

 

 

$

119,506

 

 

$

(89,402)

 

 

$

345,763

 

Adjusted return on average equity

12.9

%

 

81.1

%

 

(0.7)

%

 

NM%

 

12.2

%

Notes

(1)

Results for the three months ended June 30, 2021 included $16 of incentive fees paid with respect to specific unrealized and realized gains that are added-back to Adjusted net income.

(2)

Specifically associated with acquisition purchase accounting. See Note (3) Acquisitions.

 

Six Months Ended June 30, 2021

 

 

 

Tiptree Capital

 

 

 

 

($ in thousands)

Insurance

 

Mortgage

 

Other

 

Corporate

 

Total

Income (loss) before taxes

$

36,232

 

 

$

18,852

 

 

$

17,614

 

 

$

(21,831)

 

 

$

50,867

 

Less: Income tax (benefit) expense

(7,763)

 

 

(4,462)

 

 

(2,941)

 

 

3,987

 

 

(11,179)

 

Less: Net realized and unrealized gains (losses)(1)

(12,432)

 

 

(4,020)

 

 

(13,908)

 

 

—

 

 

(30,360)

 

Plus: Intangibles amortization (2)

7,669

 

 

—

 

 

—

 

 

—

 

 

7,669

 

Plus: Stock-based compensation expense

872

 

 

331

 

 

12

 

 

999

 

 

2,214

 

Plus: Non-recurring expenses

2,104

 

 

—

 

 

281

 

 

2,171

 

 

4,556

 

Plus: Non-cash fair value adjustments

—

 

 

—

 

 

(1,352)

 

 

—

 

 

(1,352)

 

Less: Tax on adjustments

185

 

 

823

 

 

2,925

 

 

(68)

 

 

3,865

 

Adjusted net income

$

26,867

 

 

$

11,524

 

 

$

2,631

 

 

$

(14,742)

 

 

$

26,280

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

$

26,867

 

 

$

11,524

 

 

$

2,631

 

 

$

(14,742)

 

 

$

26,280

 

Average stockholders’ equity

$

292,865

 

 

$

67,292

 

 

$

113,430

 

 

$

(84,295)

 

 

$

389,292

 

Adjusted return on average equity

18.3

%

 

34.3

%

 

4.6

%

 

NM

%

 

13.5

%

 

Six Months Ended June 30, 2020

 

 

 

Tiptree Capital

 

 

 

 

($ in thousands)

Insurance

 

Mortgage

 

Other

 

Corporate

 

Total

Income (loss) before taxes

$

(13,029)

 

 

$

6,315

 

 

$

(54,429)

 

 

$

(16,174)

 

 

$

(77,317)

 

Less: Income tax (benefit) expense

4,878

 

 

(1,231)

 

 

11,731

 

 

5,808

 

 

21,186

 

Less: Net realized and unrealized gains (losses)

27,968

 

 

2,819

 

 

58,396

 

 

—

 

 

89,183

 

Plus: Intangibles amortization (2)

4,702

 

 

—

 

 

—

 

 

—

 

 

4,702

 

Plus: Stock-based compensation expense

843

 

 

896

 

 

158

 

 

1,826

 

 

3,723

 

Plus: Non-recurring expenses

2,239

 

 

—

 

 

—

 

 

448

 

 

2,685

 

Plus: Non-cash fair value adjustments

—

 

 

—

 

 

(520)

 

 

—

 

 

(520)

 

Less: Tax on adjustments

(9,877)

 

 

(1,176)

 

 

(12,266)

 

 

(2,890)

 

 

(26,209)

 

Adjusted net income

$

17,724

 

 

$

7,623

 

 

$

3,070

 

 

$

(10,984)

 

 

$

17,433

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

$

17,724

 

 

$

7,623

 

 

$

3,070

 

 

$

(10,984)

 

 

$

17,433

 

Average stockholders’ equity

277,900

 

 

36,934

 

 

143,720

 

 

(79,252)

 

 

379,302

 

Adjusted return on average equity

12.8

%

 

41.3

%

 

4.3

%

 

NM

%

 

9.2

%

___________________________

Notes

(1)

Results for the three months ended June 30, 2021 included $64 of incentive fees paid with respect to specific unrealized and realized gains that are added-back to Adjusted net income.

(2)

Specifically associated with acquisition purchase accounting. See Note (3) Acquisitions.

Non-GAAP Financial Measures — Book value per share

Management believes the use of this financial measure provides supplemental information useful to investors as book value is frequently used by the financial community to analyze company growth on a relative per share basis. The following table provides a reconciliation between total stockholders’ equity and total shares outstanding, net of treasury shares.

($ in thousands, except per share information)

As of June 30,

 

2021

 

2020

Total stockholders’ equity

$

405,049

 

 

$

347,189

 

Less: Non-controlling interests

18,031

 

 

11,368

 

Total stockholders’ equity, net of non-controlling interests

$

387,018

 

 

$

335,821

 

 

 

 

 

Total common shares outstanding

33,395

 

 

33,676

 

 

 

 

 

Book value per share

$

11.59

 

 

$

9.97

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210804005116/en/

Tiptree Inc. Investor Relations, 212-446-1400 ir@tiptreeinc.com