CLEARWATER, Fla., May 10, 2011 (GLOBE NEWSWIRE) -- Homeowners Choice, Inc. (Nasdaq:HCII), a Florida-based provider of homeowners' insurance, today announced its results of operations for the three months ended March 31, 2011.
Income available to common stockholders for the first quarter of 2011 was $776,000, or $0.12 per diluted common share, compared with $698,000, or $0.10 per diluted common share, for the first quarter of 2010.
Gross premiums earned was $30.9 million for the quarter ended March 31, 2011 compared with $30.3 million for the quarter ended March 31, 2010. Net premiums earned (gross premiums earned reduced by premiums ceded to reinsurance companies that cover certain of the risks from hurricanes and other catastrophes) for the first quarter of 2011 increased approximately three percent to $16.7 million from $16.2 million in the prior year quarter.
Losses and loss adjustment expenses (the expenses associated with investigating and settling claims) for the first quarter of 2011 were $10.4 million compared with $9.8 million in the prior year quarter. Policy acquisition and other underwriting expenses for the three-month periods ended March 31, 2011 and 2010 were both $4.3 million.
During the three months ended March 31, 2011, the company repurchased and retired a total of 83,594 common shares at an average price of $8.23 per share. As of March 28, 2011, the maximum amount designated for repurchases under this plan was expended and the share repurchase program was terminated. On March 25, 2011, the company completed an offering of Series A 7 percent cumulative convertible preferred stock, selling 1,247,700 shares at a price of $10 per share.
"We are pleased to report our 14th consecutive profitable quarter," said Homeowners Choice Chief Executive Officer, F.X. McCahill. "I'm confident in the company's ability to continue profitability while increasing its penetration within the Florida property and casualty market."
Conference Call
The company will host an earnings conference call on Tuesday, May 10, at 4:30 p.m. EDT to discuss its first quarter 2011 results. Interested parties are invited to listen to the call live over the Internet at http://www.ir-site.com/hcpci/events.asp. The call is also available by dialing (877) 407-9210 (toll-free). International participants should instead call (201) 689-8049. Participants should dial into the conference call approximately 10 minutes before the scheduled start time. Replays of the webcast will be available until June 10, 2011.
About Homeowners Choice, Inc.
Homeowners Choice, Inc. is a Florida-based insurance holding company headquartered in Clearwater. Through its subsidiary corporations, Homeowners Choice provides property and casualty homeowners' insurance, condominium owners' insurance and tenants' insurance. Founded in 2006, Homeowners Choice today serves approximately 61,000 policyholders throughout Florida representing approximately $130 million in annualized premiums. The company's common shares trade on the NASDAQ Global Select Market under the ticker symbol HCII and are included in the Russell Microcap Index. Its warrants trade on the same market under the ticker symbol HCIIW. Its Series A 7 percent cumulative convertible preferred shares trade on the NASDAQ Capital Market under the ticker symbol HCIIP. More information about Homeowners Choice, Inc. is available at www.hcpci.com.
The Homeowners Choice, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6712
Forward-Looking Statements
This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan" and "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. For example there can be no assurance the company will continue profitability or increase penetration into the Florida property and casualty market. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition and results of operations. Homeowners Choice, Inc. disclaims all obligations to update any forward-looking statements.
| HOMEOWNERS CHOICE, INC. AND SUBSIDIARIES | ||
| Condensed Consolidated Balance Sheets | ||
| (Dollars in thousands, except share amounts) | ||
|
At March 31, 2011 |
At December 31, 2010 |
|
| (Unaudited) | ||
| Assets | ||
| Investments: | ||
| Fixed maturity securities, available-for-sale, at fair value (amortized cost $28,131 and $28,456) | $ 28,154 | 28,564 |
| Equity securities, available-for-sale, at fair value | 4,030 | 884 |
| Time deposits | 14,171 | 14,033 |
| Total investments | 46,355 | 43,481 |
| Cash and cash equivalents | 58,471 | 54,849 |
| Accrued interest and dividends receivable | 282 | 180 |
| Premiums receivable | 4,670 | 5,822 |
| Assumed reinsurance balances receivable | -- | 26 |
| Prepaid reinsurance premiums | 9,638 | 17,787 |
| Deferred policy acquisition costs | 6,757 | 9,407 |
| Property and equipment, net | 8,346 | 7,755 |
| Deferred income taxes | 1,572 | 584 |
| Other assets | 6,193 | 1,057 |
| Total assets | $ 142,284 | 140,948 |
| Liabilities and Stockholders' Equity | ||
| Losses and loss adjustment expenses | 24,050 | 22,146 |
| Unearned premiums | 47,066 | 65,034 |
| Advance premiums | 7,061 | 1,114 |
| Accrued expenses | 2,065 | 2,385 |
| Income taxes payable | 1,336 | 310 |
| Other liabilities | 3,296 | 3,330 |
| Total liabilities | 84,874 | 94,319 |
| Stockholders' equity: | ||
| 7% Series A cumulative convertible preferred stock (liquidation preference $10.00 per share), no par value, 1,500,000 shares authorized, 1,247,700 shares issued and outstanding in 2011 | -- | -- |
| Preferred stock (no par value 18,500,000 shares authorized, no shares issued or outstanding) | -- | -- |
| Common Stock, (no par value, 40,000,000 shares authorized, 6,141,802 and 6,205,396 shares issued and outstanding in 2011 and 2010) | -- | -- |
| Additional paid-in capital | 29,315 | 18,606 |
| Retained earnings | 28,242 | 28,065 |
| Accumulated other comprehensive loss | (147) | (42) |
| Total stockholders' equity | 57,410 | 46,629 |
| Total liabilities and stockholders' equity | $ 142,284 | 140,948 |
| HOMEOWNERS CHOICE, INC. AND SUBSIDIARIES | ||
| Condensed Consolidated Statements of Earnings | ||
| (Unaudited) | ||
| (Dollars in thousands, except per share amounts) | ||
|
Three Months Ended March 31, |
||
| 2011 | 2010 | |
| Revenue | ||
| Gross premiums earned | $ 30,896 | 30,344 |
| Premiums ceded | (14,222) | (14,103) |
| Net premiums earned | 16,674 | 16,241 |
| Net investment income | 564 | 531 |
| Realized investment gains | 153 | -- |
| Other | 658 | 215 |
| Total revenue | 18,049 | 16,987 |
| Expenses | ||
| Losses and loss adjustment expenses | 10,403 | 9,813 |
| Policy acquisition and other underwriting expenses | 4,263 | 4,292 |
| Other operating expenses | 2,128 | 1,696 |
| Total expenses | 16,794 | 15,801 |
| Income before income taxes | 1,255 | 1,186 |
| Income taxes | 462 | 488 |
| Net income | $ 793 | 698 |
| Preferred stock dividends | (17) | -- |
| Income available to common stockholders | $ 776 | 698 |
| Basic earnings per common share | $ 0.13 | 0.11 |
| Diluted earnings per common share | $ 0.12 | 0.10 |
| Dividends per common share | $ 0.10 | -- |