- Tiptree Financial Inc. GAAP net income of $15.0 millionfor
the second quarter and $14.0 million for the first half of 2015,
representing its 77% ownership of Tiptree Operating Company, which had
GAAP net income of $19.8 millionfor the second quarter and
$18.0 million for the first half of 2015.
- Tiptree Operating Company total Adjusted EBITDA of $32.2 millionfor the second quarter and $45.2 million for the first half of 2015.
- Tiptree Operating Company Adjusted EBITDA for continuing operations
of $7.2 million for the second quarter and $12.0 million for the first
half of 2015.
- Declared dividend of $0.025 per share to Class A stockholders.
- GAAP book value of $9.34 per Class A common share as of June 30,
2015.
NEW YORK--(BUSINESS WIRE)--
Tiptree Financial Inc. (NASDAQ:TIPT) (“Tiptree Financial”), a
diversified holding company which operates in the insurance and
insurance services, specialty finance, asset management and real estate
industries, today announced its financial results for the quarter and
six months ended June 30, 2015. Tiptree Financial operates its business
through Tiptree Operating Company, LLC (“Tiptree” or the “Company”),
which is owned 77% by Tiptree Financial and 23% by Tiptree Financial
Partners, L.P. (“TFP”). This release reports both the results of Tiptree
and the results available to Tiptree Financial’s Class A stockholders.
Second Quarter 2015 Highlights
-
Completed the sale of Philadelphia Financial Group, Inc. (“PFG”) for a
net after tax gain of $16.3 million. We received proceeds of $142.8
million and the tax associated with the sale of PFG is expected to be
approximately $25.9 million.
-
First six months of 2015 Fortegra Financial Corporation (“Fortegra”)
contributed $10.3 million in pre-tax earnings to consolidated results.
-
Sold CLO subordinated notes in Telos CLO 2007-2, Ltd. (“Telos 2”) and
Telos CLO 2013-4, Ltd. (“Telos 4”) for net cash of $39.7 million
partly to fund the diversification of our principal investments and
secondarily to recycle capital from existing, amortizing CLOs into a
new loan warehouse facility with the objective of creating new CLOs to
increase asset management fees.
-
Invested $25.0 million in its credit opportunity strategy which
involves the leveraged purchase of commercial loans.
-
Tiptree invested approximately $9.7 million in a pool of
non-performing residential mortgages securing single family properties.
Subsequent Events
-
Closed its previously announced acquisition of Reliance First Capital,
LLC, a retail mortgage origination company for a combination of cash
and Class A Common Stock of Tiptree.
-
Contributed $30 million to Telos 2015-7, Ltd. and established a new
warehouse line to leverage investments in loans in anticipation of
launching a new CLO.
-
Declared a dividend of $0.025 per share to Class A stockholders and
TFP limited partners on an as exchanged basis with a record date of
August 24, 2015, and a payment date of August 31, 2015.
-
The Board has approved a stock purchase program for the purchase of up
to an aggregate of $5 million of Class A common stock by the Company
and Michael Barnes that has not yet commenced.
Geoffrey Kauffman, Co-Chief Executive Officer of Tiptree Financial,
commented, “We are pleased with Tiptree’s results for the quarter and
are confident that our strategic direction to take advantage of positive
economic trends puts the Company in a strong position to drive long term
shareholder value.”
Second Quarter and First Half 2015 Financial
Overview
Consolidated Results
For the three months ended June 30, 2015, the Company reported after-tax
net income of $19.8 million compared with after tax net income of $4.0
million in the comparable period of 2014. For the six months ended June
30, 2015, the Company reported after tax net income of $17.8 million
compared with after tax net income of $7.6 million in the comparable
period in 2014. The increases in both periods were primarily driven by
the $27.2 million pre-tax gain (or $16.3 million after-tax gain) on the
sale of the Company’s PFG subsidiary, the incorporation of Fortegra’s
pre-tax earnings of $6.3 million in the second quarter of 2015 ($10.3
million for the six months ended June 30, 2015), partially offset by the
loss on the sales of subordinated notes in Telos 2 and Telos 4.
The Company’s total adjusted EBITDA was $32.2 million in the three
months ended June 30, 2015, compared with total adjusted EBITDA of $11.4
million in the three months ended June 30, 2014. The primary driver of
the increase in total adjusted EBITDA was the gain on sale of PFG. The
primary driver of the increase in adjusted EBITDA for continuing
operations was the incorporation of Fortegra’s adjusted EBITDA of $9.2
million for the second quarter of 2015.
The Company’s total adjusted EBITDA was $45.2 million in the six months
ended June 30, 2015, compared with total adjusted EBITDA of $21.9
million in the six months ended June 30, 2014. The primary driver of the
increase in total adjusted EBITDA was the gain on sale of PFG, partially
offset by the loss on the sale of subordinated notes in Telos 2 and
Telos 4. The primary driver of the increase in adjusted EBITDA for
continuing operations was the incorporation of Fortegra’s results for
the first half of 2015 of $17.5 million.
Management believes that adjusted EBITDA provides a supplementary metric
to enhance investors’ understanding of the on-going earnings potential
of the Company’s businesses and an indication of the Company’s ability
to generate additional funds for re-investment in the combined
businesses. As adjusted EBITDA is a Non-GAAP measure, it should be
reviewed in conjunction with the Company’s GAAP results. See “Non-GAAP
Financial Measures-EBITDA and Adjusted EBITDA” below for further
information relating to the Company’s adjusted EBITDA measure, including
a reconciliation to GAAP net income.
Segment Results
Insurance and Insurance Services segment
Insurance and insurance services segment pre-tax income was $6.3 million
for the second quarter and $10.3 million for the first half of 2015.
Pre-tax income increased from $4.0 million in the first quarter of 2015
to $6.3 million in the second quarter of 2015. The quarter over quarter
improvement in revenues was largely attributable to strong sales of
credit and warranty insurance products partially offset by competitive
pressure in mobile device protection plans and motor club memberships
resulting in reduced contract volumes in those two product lines.
Results in this segment reflect our acquisition of Fortegra in December
2014 and previously reflected the results of PFG prior to PFG being
treated as a discontinued operation. As such, given that segment results
year over year reflect different business models and different earnings
profiles, we have not provided year over year comparisons.
Specialty Finance segment
Specialty Finance segment pre-tax income was $568 thousand for the three
months ended June 30, 2015, compared with a pre-tax net loss of $731
thousand for the second quarter of 2014. For the six months ended June
30, 2015, the specialty finance segment pre-tax net income was $1.0
million, compared with a pre-tax net loss of $1.5 million for the prior
year comparable period. The Luxury and Siena businesses benefited from
an improving US economy. The increase is primarily driven by increased
mortgage originations at Luxury and higher lending volume at Siena. At
Luxury, the subsidiary’s improved business outlook reflects the
improving housing and mortgage markets, while Siena’s improved results
reflect the growing confidence of small businesses to borrow and invest.
Real Estate segment
Care had a pre-tax net loss of $2.0 million for the second quarter of
2015, compared with a pre-tax net loss of $751 thousand in the second
quarter of 2014. Care had a pre-tax loss of $6.2 million in the first
half of 2015, compared with pre-tax loss of $1.5 million in the first
half of 2014. Care made significant investments in senior housing
properties and joint ventures during 2014 and the first quarter of 2015.
The increase in the number of Care properties generated higher rental
and other income in the first half of 2015, but the revenue improvement
was more than offset by additional amortization expenses as the result
of increased value attributable to the acquired properties as a
consequence of the expansion in Care’s business.
Care had Adjusted EBITDA of $2.0 million for the second quarter of 2015
compared to $784 thousand in the comparable period of 2014 and $2.7
million of Adjusted EBITDA for the first half of 2015 compared to $1.6
million in the comparable period in 2014. See “—Non-GAAP Financial
Measures - EBITDA and Adjusted EBITDA” below for a reconciliation to
GAAP net income.
Asset Management
Pre-tax net income for the asset management segment was $2.4 million for
the second quarter of 2015, compared with pre-tax net income of $2.6
million for the second quarter of 2014, a decline of $0.2 million.
Pre-tax net income for the first half of 2015 was $4.5 million, as
compared to $4.9 million in the prior year period. The principal reason
for the decline was the reduction in CLO management fees, driven by a
combination of amortized AUM and lower fees.
Net Income attributable to CLOs managed by the Company
Pre-tax net income from the Company’s CLO business was $1.9 million for
the second quarter of 2015, compared with net pre-tax net income of $7.1
million in the second quarter of 2014. Pre-tax net income attributable
to consolidated CLOs was $2.7 million in the first half of 2015 versus
$11.7 million in the prior year period. The primary drivers of the
decline in 2015 were attributable to realized and unrealized losses
incurred on the Company’s holdings of CLO subordinated notes in the
second quarter of 2015. The Company sold its holdings of subordinated
notes issued by Telos 2 and Telos 4 during the second quarter of 2015.
The sale generated net cash proceeds of $39.7 million and realized a
total cumulative loss of $22.0 million, of which a net total of $8.0
million was recognized in the first half of 2015. The total cumulative
realized loss on the CLO subordinated notes sold was offset by total
cumulative distributions of $94.3 million received by the company over
the period the subordinated notes were held, of which $3.2 million was
earned in 2015. The sale had the effect of reducing the total amount of
distributions earned from holdings of subordinated notes in the second
quarter of 2015. A portion of the proceeds, $30 million, was invested
into a new loan warehouse facility in the third quarter 2015 in
anticipation of the creation of a new CLO (Telos 7). Net interest income
from the redeployment of these proceeds into new loans will be recorded
in the second half of the year until the CLO is issued, offsetting a
portion of the loss of the future dividend income on the subordinated
notes sold. A component of the realized loss on the sale of the
subordinated notes is attributable to the future value of this loss in
the dividend income.
Corporate and Other
The Company’s corporate and other segment incorporates revenues from the
Company’s principal investment activities, including investments in CLO
subordinated notes, investments in tax exempt securities, income from
the Company’s credit investment portfolio, net interest income from any
loans funded through warehouse facilities and net gains or losses from
the Company’s corporate finance activity, including the interest rate
and credit derivative risk mitigation transactions. Segment expenses
include interest expense on the Fortress credit facility and head office
payroll and other expenses.
Pre-tax loss from the corporate and other segment for the second quarter
2015 was $8.8 million compared to $339 thousand in the comparable period
in 2014. Pre-tax loss from the corporate and other segment for the six
months ended June 30, 2015 was $17.1 million compared to a pre-tax
income of $502 thousand for the comparable period in 2014. The primary
driver of the loss in the second quarter and first six months of 2015
was realized and unrealized net losses of $11.9 million on CLO
subordinated notes compared to net income generated by warehouse credit
facilities in place in the first half of 2014, as discussed above.
Earnings Conference Call
Tiptree Financial will host a conference call on Friday, August 14, 2015
at 11:00 a.m. Eastern Time to discuss its second quarter 2015 financial
results. A copy of our investor presentation for the second quarter
2015, 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.tiptreefinancial.com.
The conference call will be available via live or archived webcast at http://www.investors.tiptreefinancial.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 Friday, August 14, 2015 at
2:00 p.m. Eastern Time, until midnight Eastern on Friday, August 21,
2015. To listen to the replay, please dial 1-877-870-5176 (domestic) or
1-858-384-5517 (international), Passcode 13617634.
About Tiptree
Tiptree is a diversified holding company engaged through its
consolidated subsidiaries in a number of businesses and is an active
acquirer of new businesses. Tiptree, whose operations date back to 2007,
currently has subsidiaries that operate in five segments: insurance and
insurance services, specialty finance, asset management, real estate and
corporate and other (which includes Tiptree’s principal investments).
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 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 Financial Inc. | | As of |
Consolidated Statements of Financial Condition (GAAP)
(in
thousands except per share amounts) | | June 30,
2015 |
| December 31,
2014 |
| |
(Unaudited)
| |
As adjusted
|
|
Cash and cash equivalents – unrestricted
| |
$
|
170,100
| | |
$
|
52,987
| |
|
Cash and cash equivalents – restricted
| |
30,085
| | |
28,045
| |
|
Trading assets, at fair value
| |
31,824
| | |
30,163
| |
|
Investments in available for sale securities, at fair value
| |
179,772
| | |
171,128
| |
|
Mortgage loans held for sale, at fair value
| |
56,417
| | |
28,661
| |
|
Investments in loans, at fair value
| |
63,718
| | |
2,601
| |
|
Loans owned, at amortized cost – net of allowance
| |
51,439
| | |
36,095
| |
|
Notes receivable, net
| |
21,647
| | |
21,916
| |
|
Accounts and premiums receivable, net
| |
56,947
| | |
39,666
| |
|
Reinsurance receivables
| |
300,065
| | |
264,776
| |
|
Investments in partially-owned entities
| |
113
| | |
2,451
| |
|
Real estate
| |
208,565
| | |
131,308
| |
|
Intangible assets
| |
103,607
| | |
120,394
| |
|
Other receivables
| |
46,565
| | |
36,068
| |
|
Goodwill
| |
92,118
| | |
92,118
| |
|
Other assets
| |
76,131
| | |
36,875
| |
|
Assets of consolidated CLOs
| |
1,883,030
| | |
1,978,094
| |
|
Assets held for sale
| |
—
|
| |
5,129,745
|
|
|
Total assets
| |
$
|
3,372,143
|
| |
$
|
8,203,091
|
|
| Liabilities and Stockholders’ Equity | | | | |
Liabilities: | | | | |
|
Trading liabilities, at fair value
| |
$
|
22,371
| | |
$
|
22,573
| |
|
Debt
| |
464,372
| | |
363,199
| |
|
Unearned premiums
| |
333,560
| | |
299,826
| |
|
Policy liabilities
| |
69,638
| | |
63,365
| |
|
Deferred revenue
| |
65,594
| | |
45,393
| |
|
Deferred tax liabilities
| |
32,473
| | |
45,925
| |
|
Commissions payable
| |
6,904
| | |
12,983
| |
|
Other liabilities and accrued expenses
| |
135,876
| | |
63,928
| |
|
Liabilities of consolidated CLOs
| |
1,835,238
| | |
1,877,377
| |
|
Liabilities held for sale and discontinued operations
| |
771
|
| |
5,006,901
|
|
|
Total liabilities
| |
$
|
2,966,797
|
| |
$
|
7,801,470
|
|
Stockholders’ Equity: | | | | |
|
Preferred stock
| |
$
|
—
| | |
$
|
—
| |
|
Common stock - Class A
| |
32
| | |
32
| |
|
Common stock - Class B
| |
10
| | |
10
| |
|
Additional paid-in capital
| |
271,189
| | |
271,090
| |
|
Accumulated other comprehensive income
| |
(265
|
)
| |
(49
|
)
|
|
Retained earnings
| |
25,758
|
| |
13,379
|
|
|
Total stockholders’ equity of Tiptree Financial Inc. | |
296,724
| | |
284,462
| |
|
Non-controlling interests (including $92,968 and $90,144
attributable to Tiptree Financial Partners, L.P., respectively)
| |
108,622
|
| |
117,159
|
|
|
Total stockholders’ equity
| |
405,346
|
| |
401,621
|
|
|
Total liabilities and stockholders’ equity
| |
$
|
3,372,143
|
| |
$
|
8,203,091
|
|
| |
| |
|
| Book Value Per Share - Tiptree Financial Inc. | | June 30,
2015 | | December 31,
2014 |
|
Total stockholders’ equity of Tiptree Financial Inc. | |
$
|
296,724
| | |
$
|
284,462
| |
|
Class A common stock outstanding
| |
31,764
| | |
31,830
| |
|
Class A book value per common share (1) | |
$
|
9.34
| | |
$
|
8.94
| |
| | | | | | | |
|
Note:
(1) See “—Tiptree Financial Inc. and the Company Book Value Per Share”
below for further discussion of book value per common share.
|
| |
| |
Tiptree Financial Inc. Consolidated Statements of Income (GAAP) |
| | | |
|
| (Unaudited, in thousands, except share and per share data) | | Three months ended June 30, | | Six months ended June 30, |
| | 2015 |
| 2014 | | 2015 |
| 2014 |
| Revenues: | | As adjusted | | As adjusted |
|
Net realized and unrealized gains (losses) on investments
| |
$
|
443
| |
|
$
|
(29
|
)
| |
$
|
222
| | |
$
|
875
| |
|
Net realized and unrealized gains on mortgage pipeline and
associated hedging instruments
| |
368
| | |
105
| | |
719
| | |
190
| |
|
Interest income
| |
2,867
| | |
3,184
| | |
5,163
| | |
7,176
| |
|
Net credit derivative losses
| |
(444
|
)
| |
(1,257
|
)
| |
(534
|
)
| |
(1,521
|
)
|
|
Service and administrative fees
| |
25,545
| | |
—
| | |
47,472
| | |
—
| |
|
Ceding commissions
| |
10,148
| | |
—
| | |
20,085
| | |
—
| |
|
Earned premiums, net
| |
39,707
| | |
—
| | |
77,060
| | |
—
| |
|
Gain on sale of loans held for sale, net
| |
4,005
| | |
1,759
| | |
6,598
| | |
2,734
| |
|
Loan fee income
| |
1,882
| | |
980
| | |
3,281
| | |
1,409
| |
|
Rental revenue
| |
11,191
| | |
4,383
| | |
20,560
| | |
8,839
| |
|
Other income
| |
3,467
|
| |
515
|
| |
6,563
|
| |
804
|
|
|
Total revenue
| |
99,179
|
| |
9,640
|
| |
187,189
|
| |
20,506
|
|
| Expenses: | | | | | | | | |
|
Interest expense
| |
6,194
| | |
2,643
| | |
11,323
| | |
5,457
| |
|
Payroll and employee commissions
| |
23,429
| | |
7,297
| | |
43,770
| | |
13,012
| |
|
Commission expense
| |
23,927
| | |
—
| | |
40,455
| | |
—
| |
|
Member benefit claims
| |
8,240
| | |
—
| | |
15,819
| | |
—
| |
|
Net losses and loss adjustment expenses
| |
12,926
| | |
—
| | |
25,376
| | |
—
| |
|
Professional fees
| |
3,671
| | |
1,916
| | |
8,299
| | |
2,990
| |
|
Depreciation and amortization expenses
| |
11,359
| | |
1,662
| | |
26,823
| | |
3,330
| |
|
Acquisition costs
| |
—
| | |
—
| | |
1,349
| | |
—
| |
|
Other expenses
| |
12,929
|
| |
2,437
|
| |
24,073
|
| |
5,015
|
|
|
Total expense
| |
102,675
|
| |
15,955
|
| |
197,287
|
| |
29,804
|
|
| | | | | | | |
|
| Results of consolidated CLOs: | | | | | | | | |
|
Income attributable to consolidated CLOs
| |
19,033
| | |
18,083
| | |
34,696
| | |
32,698
| |
|
Expenses attributable to consolidated CLOs
| |
17,117
|
| |
11,012
|
| |
32,038
|
| |
20,984
|
|
|
Net Income attributable to consolidated CLOs
| |
1,916
|
| |
7,071
|
| |
2,658
|
| |
11,714
|
|
| (Loss) income before taxes from continuing operations | |
(1,580
|
)
| |
756
| | |
(7,440
|
)
| |
2,416
| |
|
Less: Provision (benefit) for income taxes
| |
(371
|
)
| |
(1,080
|
)
| |
(1,867
|
)
| |
(1,732
|
)
|
|
(Loss) income from continuing operations
| |
(1,209
|
)
| |
1,836
| | |
(5,573
|
)
| |
4,148
| |
| | | | | | | |
|
| Discontinued operations: | | | | | | | | |
|
Income from discontinued operations, net
| |
4,654
| | |
2,186
| | |
6,999
| | |
3,476
| |
|
Gain on sale of discontinued operations, net
| |
16,349
|
| |
—
|
| |
16,349
|
| |
—
|
|
|
Discontinued operations, net
| |
21,003
|
| |
2,186
|
| |
23,348
|
| |
3,476
|
|
|
Net income before non-controlling interests
| |
19,794
| | |
4,022
| | |
17,775
| | |
7,624
| |
|
Less: net income attributable to noncontrolling interests - Tiptree
Financial Partners, L.P.
| |
4,735
| | |
2,245
| | |
3,875
| | |
4,551
| |
|
Less: net income (loss) attributable to noncontrolling interests -
Other
| |
97
|
| |
(262
|
)
| |
(83
|
)
| |
(592
|
)
|
| Net income available to common stockholders | | $ | 14,962 |
| | $ | 2,039 |
| | $ | 13,983 |
| | $ | 3,665 |
|
| | | | | | | |
|
| Net income (loss) per Class A common share: | | | | | | | | |
|
Basic, continuing operations, net
| |
$
|
(0.03
|
)
| |
$
|
0.14
| | |
$
|
(0.11
|
)
| |
$
|
0.27
| |
|
Basic, discontinued operations, net
| |
0.50
|
| |
0.05
|
| |
0.55
|
| |
0.08
|
|
|
Net income basic
| |
0.47
|
| |
0.19
|
| |
0.44
|
| |
0.35
|
|
| | | | | | | |
|
|
Diluted, continuing operations, net
| |
(0.03
|
)
| |
0.14
| | |
(0.11
|
)
| |
0.27
| |
|
Diluted, discontinued operations, net
| |
0.50
|
| |
0.05
|
| |
0.55
|
| |
0.08
|
|
|
Net income dilutive
| |
$
|
0.47
|
| |
$
|
0.19
|
| |
$
|
0.44
|
| |
$
|
0.35
|
|
| Weighted average number of Class A common shares: | | | | | | | | |
|
Basic
| |
31,881,904
| | |
10,617,863
| | |
31,962,065
| | |
10,602,311
| |
|
Diluted
| |
31,881,904
| | |
10,617,863
| | |
31,962,065
| | |
10,602,311
| |
| | | | | | | | | | | |
|
|
| |
Tiptree Financial Inc. |
| Segment Statement of Operations |
(Unaudited, in thousands) |
| | Three months ended June 30, 2015 |
| | Insurance
and insurance
services(1) |
| Specialty
finance |
| Real estate |
| Asset
management |
| Corporate
and other |
| Totals |
|
Net realized and unrealized gains (losses) on investments
| |
$
|
5
| | |
$
|
(195
|
)
| |
$
|
369
| | |
$
|
—
| | |
$
|
264
| | |
$
|
443
| |
|
Net realized and unrealized gains on mortgage pipeline and
associated hedging instruments
| |
—
| | |
368
| | |
—
| | |
—
| | |
—
| | |
368
| |
|
Interest income
| |
687
| | |
1,822
| | |
25
| | |
—
| | |
333
| | |
2,867
| |
|
Service and administrative fees
| |
25,545
| | |
—
| | |
—
| | |
—
| | |
—
| | |
25,545
| |
|
Ceding commissions
| |
10,148
| | |
—
| | |
—
| | |
—
| | |
—
| | |
10,148
| |
|
Earned premiums, net
| |
39,707
| | |
—
| | |
—
| | |
—
| | |
—
| | |
39,707
| |
|
Gain on sale of loans held for sale, net
| |
—
| | |
4,005
| | |
—
| | |
—
| | |
—
| | |
4,005
| |
|
Loan fee income
| |
—
| | |
1,882
| | |
—
| | |
—
| | |
—
| | |
1,882
| |
|
Rental revenue
| |
—
| | |
7
| | |
11,184
| | |
—
| | |
—
| | |
11,191
| |
|
Other income
| |
2,429
|
| |
91
|
| |
772
|
| |
38
|
| |
(307
|
)
| |
3,023
|
|
|
Total revenue
| |
78,521
|
| |
7,980
|
| |
12,350
|
| |
38
|
| |
290
|
| |
99,179
|
|
| | | | | | | | | | | |
|
|
Interest expense
| |
1,775
| | |
834
| | |
1,810
| | |
—
| | |
1,775
| | |
6,194
| |
|
Payroll and employee commissions
| |
9,678
| | |
4,520
| | |
4,129
| | |
264
| | |
4,838
| | |
23,429
| |
|
Commission expense
| |
23,927
| | |
—
| | |
—
| | |
—
| | |
—
| | |
23,927
| |
|
Member benefit claims
| |
8,240
| | |
—
| | |
—
| | |
—
| | |
—
| | |
8,240
| |
|
Net losses and loss adjustment expenses
| |
12,926
| | |
—
| | |
—
| | |
—
| | |
—
| | |
12,926
| |
|
Depreciation and amortization expenses
| |
7,258
| | |
124
| | |
3,945
| | |
—
| | |
32
| | |
11,359
| |
|
Other expenses
| |
8,417
|
| |
1,934
|
| |
4,435
|
| |
175
|
| |
1,639
|
| |
16,600
|
|
|
Total expense
| |
72,221
| | |
7,412
| | |
14,319
| | |
439
| | |
8,284
| | |
102,675
| |
|
Net income attributable to consolidated CLOs
| |
—
|
| |
—
|
| |
—
|
| |
2,752
|
| |
(836
|
)
| |
1,916
|
|
|
Pre-tax income (loss)
| |
$
|
6,300
|
| |
$
|
568
|
| |
$
|
(1,969
|
)
| |
$
|
2,351
|
| |
$
|
(8,830
|
)
| |
$
|
(1,580
|
)
|
|
Less: Provision (benefit) for income taxes
| | | | | | | | | | | |
(371
|
)
|
|
Discontinued operations
| | | | | | | | | | | |
21,003
|
|
|
Net income before non-controlling interests
| | | | | | | | | | | |
$
|
19,794
| |
|
Less: net income attributable to noncontrolling interests from
continuing operations and discontinued operations - Tiptree
Financial Partners, L.P.
| | | | | | | | | | | |
4,735
| |
|
Less: net income attributable to noncontrolling interests from
continuing operations and discontinued operations - Other
| | | | | | | | | | | |
97
|
|
|
Net income available to common stockholders
| | | | | | | | | | | |
$
|
14,962
|
|
| | | | | | | | | | | | | |
|
Note:
(1) The revenues and expenses associated with PFG are reported in
Discontinued Operations.
|
| |
| Tiptree Financial Inc. |
| Segment Statement of Operations |
(Unaudited, in thousands) |
| | Three months ended June 30, 2014 |
| | Insurance
and insurance
services(1) |
| Specialty
finance |
| Real estate |
| Asset
management |
| Corporate
and other |
| Totals |
|
Net realized and unrealized gains (losses) on investments
| |
$
|
—
| | |
$
|
148
| | |
$
|
(415
|
)
| |
$
|
—
| | |
$
|
238
| | |
$
|
(29
|
)
|
|
Net realized and unrealized gains on mortgage pipeline and
associated hedging instruments
| |
—
| | |
105
| | |
—
| | |
—
| | |
—
| | |
105
| |
|
Interest income
| |
—
| | |
766
| | |
682
| | |
—
| | |
1,736
| | |
3,184
| |
|
Gain on sale of loans held for sale, net
| |
—
| | |
1,759
| | |
—
| | |
—
| | |
—
| | |
1,759
| |
|
Loan fee income
| |
—
| | |
980
| | |
—
| | |
—
| | |
—
| | |
980
| |
|
Rental revenue
| |
—
| | |
7
| | |
4,376
| | |
—
| | |
—
| | |
4,383
| |
|
Other income
| |
—
|
| |
91
|
| |
192
|
| |
64
|
| |
(1,089
|
)
| |
(742
|
)
|
|
Total revenue
| |
—
|
| |
3,856
|
| |
4,835
|
| |
64
|
| |
885
|
| |
9,640
|
|
| | | | | | | | | | | |
|
|
Interest expense
| |
—
| | |
311
| | |
978
| | |
—
| | |
1,354
| | |
2,643
| |
|
Payroll and employee commissions
| |
—
| | |
2,799
| | |
1,716
| | |
324
| | |
2,458
| | |
7,297
| |
|
Depreciation and amortization expenses
| |
—
| | |
127
| | |
1,535
| | |
—
| | |
—
| | |
1,662
| |
|
Other expenses
| |
—
|
| |
1,240
|
| |
1,357
|
| |
173
|
| |
1,583
|
| |
4,353
|
|
|
Total expense
| |
—
| | |
4,477
| | |
5,586
| | |
497
| | |
5,395
| | |
15,955
| |
|
Net intersegment revenue/(expense)
| |
—
| | |
(110
|
)
| |
—
| | |
—
| | |
110
| | |
—
| |
|
Net income attributable to consolidated CLOs
| |
—
|
| |
—
|
| |
—
|
| |
3,010
|
| |
4,061
|
| |
7,071
|
|
|
Pre-tax income (loss)
| |
$
|
—
|
| |
$
|
(731
|
)
| |
$
|
(751
|
)
| |
$
|
2,577
|
| |
$
|
(339
|
)
| |
$
|
756
|
|
|
Less: Provision (benefit) for income taxes
| | | | | | | | | | | |
(1,080
|
)
|
|
Discontinued operations
| | | | | | | | | | | |
2,186
|
|
|
Net income before non-controlling interests
| | | | | | | | | | | |
$
|
4,022
| |
|
Less: net income attributable to noncontrolling interests from
continuing operations and discontinued operations - Tiptree
Financial Partners, L.P.
| | | | | | | | | | | |
2,245
| |
|
Less: net (loss) attributable to noncontrolling interests from
continuing operations and discontinued operations - Other
| | | | | | | | | | | |
(262
|
)
|
|
Net income available to common stockholders
| | | | | | | | | | | |
$
|
2,039
|
|
Note:
(1) The revenues and expenses associated with PFG are reported in
Discontinued Operations. There is no activity reported in the second
quarter of 2014 for this segment as Tiptree acquired Fortegra on
December 4, 2014.
|
| |
| Tiptree Financial Inc. |
| Segment Statement of Operations |
(Unaudited, in thousands) |
| | Six months ended June 30, 2015 |
| | Insurance
and insurance
services(1) |
| Specialty
finance |
| Real estate |
| Asset
management |
| Corporate and
other |
| Totals |
|
Net realized and unrealized gains (losses) on investments
| |
$
|
—
| | |
$
|
307
| | |
$
|
(116
|
)
| |
$
|
—
| | |
$
|
31
| | |
$
|
222
| |
|
Net realized and unrealized gains on mortgage pipeline and
associated hedging instruments
| |
—
| | |
719
| | |
—
| | |
—
| | |
—
| | |
719
| |
|
Interest income
| |
1,399
| | |
3,175
| | |
44
| | |
—
| | |
545
| | |
5,163
| |
|
Service and administrative fees
| |
47,472
| | |
—
| | |
—
| | |
—
| | |
—
| | |
47,472
| |
|
Ceding commissions
| |
20,085
| | |
—
| | |
—
| | |
—
| | |
—
| | |
20,085
| |
|
Earned premiums, net
| |
77,060
| | |
—
| | |
—
| | |
—
| | |
—
| | |
77,060
| |
|
Gain on sale of loans held for sale, net
| |
—
| | |
6,598
| | |
—
| | |
—
| | |
—
| | |
6,598
| |
|
Loan fee income
| |
—
| | |
3,281
| | |
—
| | |
—
| | |
—
| | |
3,281
| |
|
Rental revenue
| |
—
| | |
24
| | |
20,536
| | |
—
| | |
—
| | |
20,560
| |
|
Other income
| |
4,884
|
| |
131
|
| |
1,310
|
| |
101
|
| |
(397
|
)
| |
6,029
|
|
|
Total revenue
| |
150,900
|
| |
14,235
|
| |
21,774
|
| |
101
|
| |
179
|
| |
187,189
|
|
| | | | | | | | | | | |
|
|
Interest expense
| |
3,514
| | |
1,345
| | |
3,140
| | |
—
| | |
3,324
| | |
11,323
| |
|
Payroll and employee commissions
| |
20,083
| | |
8,244
| | |
8,052
| | |
812
| | |
6,579
| | |
43,770
| |
|
Commission expense
| |
40,455
| | |
—
| | |
—
| | |
—
| | |
—
| | |
40,455
| |
|
Member benefit claims
| |
15,819
| | |
—
| | |
—
| | |
—
| | |
—
| | |
15,819
| |
|
Net losses and loss adjustment expenses
| |
25,376
| | |
—
| | |
—
| | |
—
| | |
—
| | |
25,376
| |
|
Depreciation and amortization expenses
| |
19,212
| | |
246
| | |
7,333
| | |
—
| | |
32
| | |
26,823
| |
|
Other expenses
| |
16,115
|
| |
3,397
|
| |
9,399
|
| |
337
|
| |
4,473
|
| |
33,721
|
|
|
Total expense
| |
140,574
| | |
13,232
| | |
27,924
| | |
1,149
| | |
14,408
| | |
197,287
| |
|
Net income attributable to consolidated CLOs
| |
—
|
| |
—
|
| |
—
|
| |
5,573
|
| |
(2,915
|
)
| |
2,658
|
|
|
Pre-tax income (loss)
| |
$
|
10,326
|
| |
$
|
1,003
|
| |
$
|
(6,150
|
)
| |
$
|
4,525
|
| |
$
|
(17,144
|
)
| |
$
|
(7,440
|
)
|
|
Less: Provision (benefit) for income taxes
| | | | | | | | | | | |
(1,867
|
)
|
|
Discontinued operations
| | | | | | | | | | | |
23,348
|
|
|
Net income before non-controlling interests
| | | | | | | | | | | |
$
|
17,775
| |
|
Less: net income attributable to noncontrolling interests from
continuing operations and discontinued operations - Tiptree
Financial Partners, L.P.
| | | | | | | | | | | |
3,875
| |
|
Less: net (loss) attributable to noncontrolling interests from
continuing operations and discontinued operations - Other
| | | | | | | | | | | |
(83
|
)
|
|
Net income available to common stockholders
| | | | | | | | | | | |
$
|
13,983
|
|
Segment Assets as of June 30, 2015 | | | | | | | | | | | | |
|
Segment assets
| |
$
|
840,262
| | |
$
|
123,636
| | |
$
|
240,247
| | |
$
|
2,782
| | |
$
|
282,186
| | |
$
|
1,489,113
| |
|
Assets of consolidated CLOs
| | | | | | | | | | | |
1,883,030
| |
|
Assets held for sale
| | | | | | | | | | | |
—
|
|
|
Total assets
| | | | | | | | | | | |
$
|
3,372,143
|
|
Note:
(1) The revenues and expenses associated with PFG are reported in
Discontinued Operations.
|
| |
| Tiptree Financial Inc. |
| Segment Statement of Operations |
(Unaudited, in thousands) |
| | Six months ended June 30, 2014 |
| | Insurance and
insurance
services(1) |
| Specialty
finance |
| Real estate |
| Asset
management |
| Corporate
and other |
| Totals |
|
Net realized and unrealized gains (losses) on investments
| |
$
|
—
| | |
$
|
115
| | |
$
|
(724
|
)
| |
$
|
—
| | |
$
|
1,484
| | |
$
|
875
| |
|
Net realized and unrealized gains on mortgage pipeline and
associated hedging instruments
| |
—
| | |
190
| | |
—
| | |
—
| | |
—
| | |
190
| |
|
Interest income
| |
—
| | |
1,220
| | |
1,365
| | |
—
| | |
4,591
| | |
7,176
| |
|
Gain on sale of loans held for sale, net
| |
—
| | |
2,734
| | |
—
| | |
—
| | |
—
| | |
2,734
| |
|
Loan fee income
| |
—
| | |
1,409
| | |
—
| | |
—
| | |
—
| | |
1,409
| |
|
Rental revenue
| |
—
| | |
17
| | |
8,822
| | |
—
| | |
—
| | |
8,839
| |
|
Other income
| |
—
|
| |
92
|
| |
386
|
| |
158
|
| |
(1,353
|
)
| |
(717
|
)
|
|
Total revenue
| |
—
|
| |
5,777
|
| |
9,849
|
| |
158
|
| |
4,722
|
| |
20,506
|
|
| | | | | | | | | | | |
|
|
Interest expense
| |
—
| | |
455
| | |
1,956
| | |
—
| | |
3,046
| | |
5,457
| |
|
Payroll and employee commissions
| |
—
| | |
4,392
| | |
3,514
| | |
1,030
| | |
4,076
| | |
13,012
| |
|
Depreciation and amortization expenses
| |
—
| | |
237
| | |
3,093
| | |
—
| | |
—
| | |
3,330
| |
|
Other expenses
| |
—
|
| |
1,972
|
| |
2,801
|
| |
363
|
| |
2,869
|
| |
8,005
|
|
|
Total expense
| |
—
| | |
7,056
| | |
11,364
| | |
1,393
| | |
9,991
| | |
29,804
| |
|
Net intersegment revenue/(expense)
| |
—
| | |
(188
|
)
| |
—
| | |
—
| | |
188
| | |
—
| |
|
Net income attributable to consolidated CLOs
| |
—
|
| |
—
|
| |
—
|
| |
6,131
|
| |
5,583
|
| |
11,714
|
|
|
Pre-tax income (loss)
| |
$
|
—
|
| |
$
|
(1,467
|
)
| |
$
|
(1,515
|
)
| |
$
|
4,896
|
| |
$
|
502
|
| |
$
|
2,416
|
|
|
Less: Provision for income taxes
| | | | | | | | | | | |
(1,732
|
)
|
|
Discontinued operations
| | | | | | | | | | | |
3,476
|
|
|
Net income before non-controlling interests
| | | | | | | | | | | |
$
|
7,624
| |
|
Less: net (loss) attributable to noncontrolling interests from
continuing operations and discontinued operations - Tiptree
Financial Partners, L.P.
| | | | | | | | | | | |
4,551
| |
|
Less: net income attributable to noncontrolling interests from
continuing operations and discontinued operations - Other
| | | | | | | | | | | |
(592
|
)
|
|
Net income available to common stockholders
| | | | | | | | | | | |
$
|
3,665
|
|
| | | | | | | | | | | |
|
Segment Assets as of December 31, 2014 | | | | | | | | | | | | |
|
Segment assets
| |
$
|
767,914
| | |
$
|
79,075
| | |
$
|
179,822
| | |
$
|
2,871
| | |
$
|
65,570
| | |
$
|
1,095,252
| |
|
Assets of consolidated CLOs
| | | | | | | | | | | |
1,978,094
| |
|
Assets held for sale
| | | | | | | | | | | |
5,129,745
|
|
|
Total assets
| | | | | | | | | | | |
$
|
8,203,091
|
|
| | | | | | | | | | | | | |
|
Note:
(1) The revenues and expenses associated with PFG are reported in
Discontinued Operations. There is no activity reported in the first half
of 2014 for this segment as Tiptree acquired Fortegra on December 4,
2014.
Tiptree Financial Inc.
Non-GAAP Financial Measures
(Unaudited,
in thousands)
Non-GAAP Financial Measures - EBITDA and
Adjusted EBITDA
In addition to the results of operations presented in accordance with
GAAP, management uses EBITDA and Adjusted EBITDA on a consolidated basis
and for each segment, which are non-GAAP financial measures. We believe
that consolidated EBITDA and Adjusted EBITDA provide supplemental
information useful to investors as it is frequently used by the
financial community to analyze performance period to period, to analyze
a company’s ability to service its debt and to facilitate comparison
among companies. We believe segment EBITDA and Adjusted EBITDA provides
additional supplemental information to compare results among our
segments. EBITDA and Adjusted EBITDA are not a measurement of financial
performance or liquidity under GAAP; therefore, EBITDA and Adjusted
EBITDA should not be considered as an alternative or substitute for
GAAP. Our presentation of EBITDA and Adjusted EBITDA may differ from
similarly titled non-GAAP financial measures used by other companies. We
define EBITDA as GAAP net income of the Company adjusted to add
consolidated interest expense, consolidated income taxes and
consolidated depreciation and amortization expense as presented in our
financial statements and Adjusted EBITDA as EBITDA adjusted to (i)
subtract interest expense on asset-specific debt incurred in the
ordinary course of our subsidiaries’ business operations, (ii) adjust
for the effect of purchase accounting, (iii) add significant acquisition
related costs and (iv) adjust for significant relocation costs.
|
|
| Reconciliation from the Company’s GAAP net income to |
| Non-GAAP financial measures - EBITDA and Adjusted EBITDA |
| (Unaudited) |
| (in thousands) |
| Three months ended
June 30, |
| Six months ended
June 30, |
| Year ended
December 31, |
| | 2015 |
| 2014 | | 2015 |
| 2014 | | 2014 |
| Net income (loss) available to Class A common stockholders | | $ | 14,962 | |
| $ | 2,039 | | | $ | 13,983 | | | $ | 3,665 | | | $ | (1,710 | ) |
|
Add: net income attributable to noncontrolling interests - Tiptree
Financial Partners, L.P.
| |
4,735
| | |
2,245
| | |
3,875
| | |
4,551
| | |
6,791
| |
|
Add: net income (loss) attributable to noncontrolling interests -
Other
| |
97
| | |
(262
|
)
| |
(83
|
)
| |
(592
|
)
| |
(497
|
)
|
|
Less: net income from discontinued operations
|
|
21,003
|
|
|
2,186
|
| |
23,348
|
|
|
3,476
|
|
|
(7,937
|
)
|
| Income (loss) from Continuing Operations of the Company | | $ | (1,209 | ) | | $ | 1,836 | | | $ | (5,573 | ) | | $ | 4,148 | | | $ | (3,353 | ) |
|
Consolidated interest expense
| |
6,194
| | |
2,643
| | |
11,323
| | |
5,457
| | |
12,541
| |
|
Consolidated income taxes
| |
(371
|
)
| |
(1,080
|
)
| |
(1,867
|
)
| |
(1,732
|
)
| |
4,141
| |
|
Consolidated depreciation and amortization expense
|
|
11,359
|
|
|
1,662
|
| |
26,823
|
|
|
3,330
|
|
|
11,945
|
|
|
EBITDA for Continuing Operations
| |
$
|
15,973
| | |
$
|
5,061
| | |
$
|
30,706
| | |
$
|
11,203
| | |
$
|
25,274
| |
|
Consolidated non-corporate and non-acquisition related interest
expense(1) | |
(2,663
|
)
| |
(1,289
|
)
| |
(4,441
|
)
| |
(2,938
|
)
| |
(7,236
|
)
|
|
Effects of Purchase Accounting related to the Fortegra acquisition(2) | |
(6,118
|
)
| |
—
| | |
(15,601
|
)
| |
—
| | |
(4,168
|
)
|
|
Significant acquisition related costs(3) |
|
—
|
|
|
—
|
| |
1,349
|
|
|
—
|
| |
6,121
|
|
| Subtotal Adjusted EBITDA for Continuing Operations of the Company |
| $ | 7,192 |
|
| $ | 3,772 |
| | $ | 12,013 |
|
| $ | 8,265 |
| | $ | 19,991 |
|
| | | | | | | | | |
|
|
Income from Discontinued Operations of the Company(4) | |
$
|
21,003
| | |
$
|
2,186
| | |
$
|
23,348
| | |
$
|
3,476
| | |
$
|
7,937
| |
|
Consolidated interest expense
| |
2,572
| | |
2,896
| | |
5,226
| | |
5,810
| | |
11,475
| |
|
Consolidated income taxes
| |
1,054
| | |
1,577
| | |
3,796
| | |
2,658
| | |
5,525
| |
Consolidated depreciation and amortization expense
|
|
404
|
|
|
937
|
| |
862
|
|
|
1,740
|
|
|
4,379
|
|
|
EBITDA for Discontinued Operations
| |
$
|
25,033
| | |
$
|
7,596
| | |
$
|
33,232
| | |
$
|
13,684
| | |
$
|
29,316
| |
|
Significant relocation costs(5) |
|
—
|
|
|
—
|
| |
—
|
| |
—
|
|
|
5,477
|
|
| Subtotal Adjusted EBITDA for Discontinued Operations of the
Company |
| $ | 25,033 |
|
| $ | 7,596 |
| | $ | 33,232 |
|
| $ | 13,684 |
|
| $ | 34,793 |
|
|
|
|
|
|
| |
|
|
|
|
|
| Total Adjusted EBITDA of the Company |
| $ | 32,225 |
|
| $ | 11,368 |
| | $ | 45,245 |
|
| $ | 21,949 |
|
| $ | 54,784 |
|
| | | | | | | | | | | | | | | | | | | |
|
Notes: |
|
| |
|
(1)
| |
The consolidated non-corporate and non-acquisition related interest
expense subtracted from Adjusted EBITDA includes interest expense
associated with asset-specific debt at subsidiaries in the Specialty
Finance, Real Estate and Corporate and Other segments. For the
quarter ended June 30, 2015, interest expense for the asset-specific
debt was $834 thousand for Specialty Finance, $1.7 million for Real
Estate and $83 thousand for Corporate and Other, totaling $2.7
million. For the quarter ended June 30, 2014, interest expense for
the asset-specific debt was $311 thousand for Specialty Finance and
$1 million for Real Estate totaling $1.3 million. For the six months
ended June 30, 2015, interest expense for the asset-specific debt
was $1.3 million for Specialty Finance, $3 million for Real Estate
and $83 thousand for Corporate and other, totaling $4.4 million. For
the six months ended June 30, 2014, interest expense for the
asset-specific debt was $455 thousand for Specialty Finance, $2
million for Real Estate, and $527 thousand for Corporate and Other
segments, totaling $2.9 million.
|
| |
|
|
(2)
| |
Tiptree’s purchase of Fortegra resulted in a number of purchase
accounting adjustments being made as of the date of acquisition,
which included setting deferred cost assets to a fair value of
zero, modifying deferred revenue liabilities to their respective
fair values, and recording a substantial intangible asset
representing the value of the acquired insurance policies and
contracts. Following the purchase accounting adjustments, for the
quarter ended June 30, 2015, expenses associated with deferred
costs were more favorably stated by $7.9 million and current
period income associated with deferred revenues were less
favorably stated by $1.8 million. For the six months ended June
30, 2015, expenses associated with deferred costs were more
favorably stated by $20.3 million and current period income
associated with deferred revenues were less favorably stated by
$4.7 million. Thus, the purchase accounting effect increased
EBITDA by $6.1 million and $15.6 million in the quarter ended June
30, 2015 and the six months ended June 30, 2015, respectively,
above what the historical basis of accounting would have
generated. The impact of purchase accounting has been reversed to
reflect an adjusted EBITDA without the purchase accounting effect.
|
| |
|
|
(3)
| |
Significant acquisition related costs in connection with Care’s
acquisition of the Royal Portfolio and Greenfield II Portfolio
properties included taxes of $504 thousand, legal costs of $414
thousand and $431 thousand of other property acquisition expenses.
|
| |
|
|
(4)
| |
See Note 5—Dispositions, Asset Held for Sale and Discontinued
Operations, in the accompanying consolidated financial statements
contained in Tiptree Financial’s form 10-Q for the quarter ended
June 30, 2015, for further discussion of discontinued operations.
|
| |
|
|
(5)
| |
Significant relocation costs for discontinued operations included
expenses incurred in connection with the move of PFAS’s physical
location from New Jersey to Philadelphia for the year ended December
31, 2014.
|
| |
|
|
| |
Segment EBITDA and ADJUSTED EBITDA - Three months ended June
30, 2015 and June 30, 2014 (Unaudited) |
| |
|
|
($ in thousands)
| | Segment EBITDA and ADJUSTED EBITDA - Three months ended June 30,
2015 and June 30, 2014 |
| | Insurance
and
insurance
services |
| Specialty finance |
| Real estate |
| Asset management |
| Corporate and other |
| Totals |
| | Three
months
ended
June
30, | | Three months ended
June 30, | | Three months ended
June 30, | | Three months ended
June 30, | | Three months ended
June 30, | | Three months ended
June 30, |
| | 2015 | | 2015 |
| 2014 | | 2015 |
| 2014 | | 2015 |
| 2014 |
| 2015 |
| 2014 | | 2015 |
| 2014 |
|
Pre tax income/(loss)
| |
$
|
6,300
| | |
$
|
568
| |
|
$
|
(731
|
)
| |
$
|
(1,969
|
)
|
|
$
|
(751
|
)
| |
$
|
2,351
| |
|
$
|
2,577
| | |
$
|
(8,830
|
)
|
|
$
|
(339
|
)
| |
$
|
(1,580
|
)
|
|
$
|
756
| |
|
Add back:
| | | | | | | | | | | | | | | | | | | | | | |
|
Interest expense
| |
1,775
| | |
834
| | |
311
| | |
1,810
| | |
978
| | |
—
| | |
—
| | |
1,775
| | |
1,354
| | |
6,194
| | |
2,643
| |
|
Depreciation and amortization expenses
| |
7,258
|
| |
124
|
|
|
127
|
| |
3,945
|
|
|
1,535
|
| |
—
|
|
|
—
|
| |
32
|
|
|
—
|
| |
11,359
|
|
|
1,662
|
|
|
Segment EBITDA
| |
$
|
15,333
| | |
$
|
1,526
| | |
$
|
(293
|
)
| |
$
|
3,786
| | |
$
|
1,762
| | |
$
|
2,351
| | |
$
|
2,577
| | |
$
|
(7,023
|
)
| |
$
|
1,015
| | |
$
|
15,973
| | |
$
|
5,061
| |
| | | | | | | | | | | | | | | | | | | | | |
|
|
EBITDA adjustments:
| | | | | | | | | | | | | | | | | | | | | | |
|
Asset-specific debt interest
| |
—
| | |
(834
|
)
| |
(311
|
)
| |
(1,746
|
)
| |
(978
|
)
| |
—
| | |
—
| | |
(83
|
)
| |
—
| | |
(2,663
|
)
| |
(1,289
|
)
|
|
Fortegra purchase accounting
| |
(6,118
|
)
| |
—
|
|
|
—
|
| |
—
|
|
|
—
|
| |
—
|
|
|
—
|
| |
—
|
|
|
—
|
| |
(6,118
|
)
|
|
—
|
|
|
Segment Adjusted EBITDA
| |
$
|
9,215
|
| |
$
|
692
|
|
|
$
|
(604
|
)
| |
$
|
2,040
|
|
|
$
|
784
|
| |
$
|
2,351
|
|
|
$
|
2,577
|
| |
$
|
(7,106
|
)
|
|
$
|
1,015
|
| |
$
|
7,192
|
|
|
$
|
3,772
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
Segment EBITDA and ADJUSTED EBITDA - Six months ended June 30,
2015 and June 30, 2014 (Unaudited) |
|
| |
|
($ in thousands)
| | Segment EBITDA and ADJUSTED EBITDA - Six months ended June 30,
2015 and June 30, 2014 |
| | Insurance
and
insurance
services |
| Specialty finance |
| Real estate |
| Asset management |
| Corporate and other |
| Totals |
| | Six months
ended
June 30, | | Six months ended
June 30, | | Six months ended
June 30, | | Six months ended
June 30, | | Six months ended
June 30, | | Six months ended
June 30, |
| | 2015 | | 2015 | 2014 | | 2015 | 2014 | | 2015 | 2014 | | 2015 | 2014 | | 2015 | 2014 |
|
Pre tax income/(loss)
| |
$
|
10,326
| | |
$
|
1,003
| |
$
|
(1,467
|
)
| |
$
|
(6,150
|
)
|
$
|
(1,515
|
)
| |
$
|
4,525
| |
$
|
4,896
| | |
$
|
(17,144
|
)
|
$
|
502
| | |
$
|
(7,440
|
)
|
$
|
2,416
| |
|
Add back:
| | | | | | | | | | | | | | | | | |
|
Interest expense
| |
3,514
| | |
1,345
| |
455
| | |
3,140
| |
1,956
| | |
—
| |
—
| | |
3,324
| |
3,046
| | |
11,323
| |
5,457
| |
|
Depreciation and amortization expenses
| |
19,212
|
| |
246
|
|
237
|
| |
7,333
|
|
3,093
|
| |
—
|
|
—
|
| |
32
|
|
—
|
| |
26,823
|
|
3,330
|
|
|
Segment EBITDA
| |
$
|
33,052
| | |
$
|
2,594
| |
$
|
(775
|
)
| |
$
|
4,323
| |
$
|
3,534
| | |
$
|
4,525
| |
$
|
4,896
| | |
$
|
(13,788
|
)
|
$
|
3,548
| | |
$
|
30,706
| |
$
|
11,203
| |
| | | | | | | | | | | | | | | | |
|
|
EBITDA adjustments:
| | | | | | | | | | | | | | | | | |
|
Asset-specific debt interest
| |
—
| | |
(1,345
|
)
|
(455
|
)
| |
(3,013
|
)
|
(1,956
|
)
| |
—
| |
—
| | |
(83
|
)
|
(527
|
)
| |
(4,441
|
)
|
(2,938
|
)
|
|
Fortegra purchase accounting
| |
(15,601
|
)
| |
—
| |
—
| | |
—
| |
—
| | |
—
| |
—
| | |
—
| |
—
| | |
(15,601
|
)
|
—
| |
|
Significant acquisition expenses
| |
—
|
| |
—
|
|
—
|
| |
1,349
|
|
—
|
| |
—
|
|
—
|
| |
—
|
|
—
|
| |
1,349
|
|
—
|
|
|
Segment Adjusted EBITDA
| |
$
|
17,451
|
| |
$
|
1,249
|
|
$
|
(1,230
|
)
| |
$
|
2,659
|
|
$
|
1,578
|
| |
$
|
4,525
|
|
$
|
4,896
|
| |
$
|
(13,871
|
)
|
$
|
3,021
|
| |
$
|
12,013
|
|
$
|
8,265
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Tiptree Financial Inc. and the Company
Book Value Per
Share
(Unaudited, in thousands, except per share amounts)
Tiptree Financial’s book value per share was $9.34 as of June 30, 2015
compared with $8.94 as of December 31, 2014. Total stockholders' equity
for the Company was $395.3 million as of June 30, 2015, which comprised
total stockholders' equity of $405.3 million adjusted for $15.7 million
attributable to non-controlling interest at subsidiaries that are not
wholly owned by the Company, such as Siena, Luxury and Care, and net
liabilities of $5.7 million wholly owned by Tiptree Financial Inc. Total
stockholders' equity for the Company was $381.3 million as of
December 31, 2014, which comprised total stockholders' equity of $401.7
million adjusted for $27.1 million attributable to non-controlling
interest at subsidiaries that are not wholly owned by the Company and
net liabilities of $6.7 million wholly owned by Tiptree Financial Inc.
Additionally, the Company’s book value per share is based upon Class A
common shares outstanding, plus Class A common stock issuable upon
exchange of partnership units of TFP. The total shares as of June 30,
2015 and December 31, 2014 were 41.5 million and 41.6 million,
respectively.
Tiptree Financial’s Class A book value per common share and the
Company’s book value per share are presented below.
|
|
| Book value per share - Tiptree Financial (in thousands, except
per share data) |
|
| June 30,
2015 |
| December 31,
2014 |
|
Total stockholders’ equity of Tiptree Financial
| |
$
|
296,724
| | |
$
|
284,462
|
|
Class A common stock outstanding
| |
31,764
| | |
31,830
|
|
Class A book value per common share(1) | |
$
|
9.34
| | |
$
|
8.94
|
|
|
|
|
|
|
| Book value per share - the Company |
|
|
|
|
|
Total stockholders’ equity of the Company
| |
$
|
395,340
| | |
$
|
381,300
|
| | | |
|
|
Class A common stock outstanding
| |
31,764
| | |
31,830
|
|
Class A common stock issuable upon exchange of partnership units of
TFP
| |
9,767
|
| |
9,770
|
|
Total shares
| |
41,531
|
| |
41,600
|
| | | |
|
|
Company book value per share
| |
$
|
9.52
| | |
$
|
9.17
|
| | | |
|
Notes: |
|
(1)
|
|
See Note 24—Earnings per Share, in the Form 10-Q for the quarter
ended June 30, 2015, for further discussion of potential dilution
from warrants.
|
| |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150813005350/en/
Tiptree Financial Inc.
Investor Relations, 212-446-1400
ir@tiptreefinancial.com
Source: Tiptree Financial Inc.