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| 8-K - FORM 8-K - Homeowners of America Holding Corp | form8_k.htm |
EXHIBIT 99.1
NEWS RELEASE
HOMEOWNERS OF AMERICA HOLDING CORPORATION REPORTS
THIRD QUARTER 2015 FINANCIAL RESULTS
Irving, TX, November 11, 2015 – Homeowners of America Holding Corporation (OTCQB: HMWN) ("Homeowners of America," the "Company") announced today its consolidated financial results for the three and nine months ended September 30, 2015. For the three months ended September 30, 2015, revenues were $10.0 million and net income was $1.6 million ($0.09 diluted income per share) compared with revenues of $7.8 million and net income of $1.0 million ($0.06 diluted income per share) for the three months ended September 30, 2014. For the nine months ended September 30, 2015, revenues were $27.9 million and net income was $3.0 million ($0.17 diluted income per share) compared with revenues of $21.1 million and net income of $2.0 million ($0.11 diluted income per share) for the nine months ended September 30, 2014.
Direct premium production increased 35.59% to $28.6 million in the third quarter of 2015, compared to $21.1 million in the same quarter of 2014.
In the first nine months of 2015, compared to the same period of 2014, direct premium production increased 30.1% to $71.5 million.
Stockholders' equity was $13.8 million as of September 30, 2015, or $0.84 per common share compared to stockholders' equity of $10.7 million as of December 31, 2014, or $0.66 per common share.
Headquartered in Irving, Texas, Homeowners of America is primarily a Texas-based property and casualty insurance company that specializes in residential property coverage for homeowners and real estate investors. Homeowners of America conducts its operations through its subsidiaries Homeowners of America Insurance Company ("HAIC") and Homeowners of America, MGA, Inc. ("MGA"). HAIC, formed in 2006 and domiciled in Texas, is licensed in multiple states and authorized to write various lines of property and casualty insurance. The MGA was formed in 2010 and provides marketing and claims administration services.
1
Forward Looking Statements
Statements made in this press release that are not historical facts, including statements accompanied by words such as "will," "believe," "anticipate," "expect," "estimate," or similar words are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding Homeowners of America's plans and performance. These statements are based on management's estimates, assumptions and projections as of the date of this release and are not guarantees of future performance and include statements regarding management's views and expectations, the Company's growth opportunities, underwriting margins and actions by competitors. Actual results may differ materially from the results expressed or implied in these statements as the result of risks, uncertainties and other factors including the factors set forth in the Company's filings with the Securities and Exchange Commission, including Homeowners of America's Annual Report on Form 10-K for the year ended December 31, 2014. Homeowners of America cautions you not to place undue reliance on the forward-looking statements contained in this release. Homeowners of America does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.
About the Company:
Homeowners of America Holding Corporation (OTCQB: HMWN) trades on the OTCQB venture stage marketplace for early stage and developing U.S. and international companies. Companies are current in their reporting and undergo an annual verification and management certification process. Investors can find Real-Time quotes and market information for the company on www.otcmarkets.com.
Homeowners of America Holding Corporation (http://www.otcmarkets.com/stock/HMWN/quotes)
Homeowners of America's SEC filings can be accessed through the Investor Relations' section of the Company's website, www.hoaic.com, or through the SEC's EDGAR Database at www.sec.gov (Homeowners of America EDGAR CIK No. 00001346922).
CONTACT: Homeowners of America Holding Corporation
Attn: Investor Relations
1333 Corporate Drive, Suite 325
Irving, TX 75038
VIA EMAIL: investorrelations@hoaic.com
- Financial Tables Follow –
2
Homeowners of America Holding Corporation
CONSOLIDATED BALANCE SHEETS
September 30, 2015 and December 31, 2014
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September 30, 2015
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December 31, 2014
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|||||||
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(Unaudited)
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||||||||
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Assets:
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||||||||
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Cash and cash equivalents
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$
|
8,926,241
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$
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5,648,278
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||||
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Short-term investments
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4,720,000
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1,231,881
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||||||
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Restricted cash and investments
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2,760,037
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3,790,000
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||||||
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Restricted fixed-maturity securities, available-for-sale, at fair value (amortized cost $539,690 as of September 30, 2015 and $539,558 as of December 31, 2014)
|
542,763
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539,654
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||||||
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Fixed-maturity securities, available-for-sale, at fair value (amortized cost $3,481,877 as of September 30, 2015 and $3,827,268 as of December 31, 2014)
|
3,495,741
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3,827,245
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||||||
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Long-term investments
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10,740,000
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3,430,000
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||||||
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Accrued investment income
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62,220
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55,908
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||||||
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Due and deferred premiums
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6,089,610
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5,089,131
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||||||
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Balance due from reinsurers
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73,845,415
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54,157,528
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||||||
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Property, equipment and software, net
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305,451
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344,495
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||||||
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Deferred policy acquisition costs
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10,055,007
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7,897,806
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||||||
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Prepaid expenses and other
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1,007,668
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552,728
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||||||
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Deferred tax assets, net
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2,238,428
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1,517,935
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||||||
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Total assets
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$
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124,788,581
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$
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88,082,589
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||||
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Liabilities:
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||||||||
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Loss and loss adjustment expenses
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$
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23,084,396
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$
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15,009,506
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||||
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Advance premiums
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225,769
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74,172
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||||||
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Ceded reinsurance premiums payable
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11,047,930
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4,342,874
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||||||
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Unearned premiums
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51,608,029
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40,021,934
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||||||
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Unearned ceding commissions
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15,165,517
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11,200,317
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||||||
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Commissions payable, reinsurers and agents
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3,576,637
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3,754,929
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||||||
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General and other accrued expenses payable
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4,667,386
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2,232,547
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||||||
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Income tax payable
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1,058,190
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-
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||||||
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Taxes, licenses and other fees payable
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512,282
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765,782
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||||||
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Total liabilities
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110,946,136
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77,402,061
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Stockholders' equity:
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||||||||
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Common stock, $0.0001 par value per share; 40,000,000 shares authorized;17,708,125 shares issued and 16,398,125 shares outstanding as of September 30, 2015 and 17,479,852 shares issued and 16,168,852 shares outstanding as of December 31, 2014
|
1,640
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1,617
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||||||
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Treasury stock, $0.0001 par value per share; 1,310,000 common shares as of September 30, 2015 and 1,311,000 common shares as of December 31, 2014
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(131
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)
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(131
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)
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||||
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Additional paid-in-capital
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6,386,561
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6,209,265
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||||||
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Accumulated other comprehensive income
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16,937
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73
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||||||
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Retained earnings
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7,437,438
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4,469,704
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||||||
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Total stockholders' equity
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13,842,445
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10,680,528
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||||||
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Total liabilities and stockholders' equity
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$
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124,788,581
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$
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88,082,589
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||||
3
Homeowners of America Holding Corporation
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
September 30, 2015 and 2014
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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|||||||||||||||
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Revenues:
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2015
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2014
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2015
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2014
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Premiums earned
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$
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21,635,656
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$
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16,893,086
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$
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59,946,870
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$
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46,933,714
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||||||||
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Ceded premiums
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(20,245,090
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)
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(16,046,107
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)
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(56,058,053
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)
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(43,539,301
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)
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||||||||
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Net premiums earned
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1,390,566
|
846,979
|
3,888,817
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3,394,413
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||||||||||||
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Policy fees
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2,032,200
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1,578,900
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5,201,525
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4,188,500
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||||||||||||
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Ceding commissions and reinsurance profit share
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6,140,538
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5,078,682
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17,135,111
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12,375,912
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||||||||||||
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Loss adjustment and other fee income
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445,198
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334,277
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1,593,014
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1,159,478
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||||||||||||
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Investment income, net of investment expenses
|
37,760
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10,647
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85,726
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19,888
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||||||||||||
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Net realized investment losses
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(4,833
|
)
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-
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(3,833
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)
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-
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||||||||||
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Total revenue
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10,041,429
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7,849,485
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27,900,360
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21,138,191
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||||||||||||
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Expenses:
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||||||||||||||||
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Losses and loss adjustment expenses
|
496,205
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554,486
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3,636,976
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1,990,625
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||||||||||||
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Policy acquisition and other underwriting expenses
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5,404,148
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4,521,009
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14,766,957
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11,939,855
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||||||||||||
|
General and administrative expenses
|
1,623,008
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1,246,887
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4,931,052
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4,197,353
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||||||||||||
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Total expenses
|
7,523,361
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6,322,382
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23,334,985
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18,127,833
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||||||||||||
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Income before income taxes
|
2,518,068
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1,527,103
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4,565,375
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3,010,358
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||||||||||||
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Provision (benefit) for income taxes:
|
||||||||||||||||
|
Current
|
1,114,995
|
680,040
|
2,318,134
|
1,602,315
|
||||||||||||
|
Deferred
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(242,530
|
)
|
(149,527
|
)
|
(720,493
|
)
|
(549,628
|
)
|
||||||||
|
Total income taxes
|
872,465
|
530,513
|
1,597,641
|
1,052,687
|
||||||||||||
|
Net income
|
$
|
1,645,603
|
$
|
996,590
|
$
|
2,967,734
|
$
|
1,957,671
|
||||||||
|
Cumulative preferred stock dividends
|
-
|
-
|
-
|
-
|
||||||||||||
|
Net income available to common stockholders
|
$
|
1,645,603
|
$
|
996,590
|
$
|
2,967,734
|
$
|
1,957,671
|
||||||||
|
Basic income per common share
|
$
|
0.10
|
$
|
0.06
|
$
|
0.18
|
$
|
0.12
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||||||||
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Diluted income per common share
|
$
|
0.09
|
$
|
0.06
|
$
|
0.17
|
$
|
0.11
|
||||||||
|
Cash dividend declared per common share
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
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||||||||
4