NASHVILLE, TN / ACCESSWIRE / May 7, 2019 / First Acceptance Corporation (OTCQX: FACO) today reported its financial results for the quarter ended March 31, 2019. A quarterly report can be found at www.otcmarkets.com/stock/FACO/disclosure.
Income before income taxes, for the three months ended March 31, 2019 was $8.3 million, compared with income before income taxes of $7.2 million for the three months ended March 31, 2018. Net income for the three months ended March 31, 2019 was $6.5 million, compared with net income of $5.4 million for the three months ended March 31, 2018. Diluted net income per share was $0.16 and $0.13 for the three months ended March 31, 2019 and 2018, respectively.
For the three months ended March 31, 2019 and 2018, we recognized favorable prior period loss and LAE development of $11.1 million and $4.1 million, respectively. Net income for the three months ended March 31, 2019 included $800 thousand in unrealized gains on equity securities and net income for the three months ended March 31, 2018 included $386 thousand in unrealized losses on equity securities.
President and Chief Executive Officer, Ken Russell, commented, 'Welcome to the new Acceptance Insurance! With the full implementation of our Agency Model now completed, we no longer view ourselves solely as a non-standard automobile insurance carrier with incidental insurance agency operations, but rather as a full-service retail personal lines insurance agency whose business includes non-standard automobile insurance policies written through our own carrier. With all the pieces now in place, I look forward to continued progress as both our employee-agents and customers learn to reap the full benefits of what we now have to offer.'
Mr. Russell further added, 'While I am certainly pleased with a profitable quarter that was driven by continued favorable loss development and the outstanding efforts of our claims staff, we must continue to work diligently to build our revenues. I believe that we can profitably grow our book of business through continued promotion of our Agency Model, newly-developed processes to increase policy renewals, improved quality assurance procedures and enhanced employee-agent incentive programs.'
About First Acceptance Corporation
We are principally a retailer, servicer and underwriter of non-standard personal automobile insurance based in Nashville, Tennessee. Our insurance operations generate revenue from selling non-standard personal automobile insurance products and related products in 16 states. We currently conduct our insurance servicing and underwriting operations in 14 states and operate only as an insurance agency in two states. We are also licensed as an insurance company in 12 states where we do not conduct any business. Non-standard personal automobile insurance is sought after by individuals because of their inability or unwillingness to obtain standard insurance coverage due to various factors, including payment history, payment preference, failure in the past to maintain continuous insurance coverage or driving record and/or vehicle type.
At March 31, 2019, we leased and operated 350 retail locations and a call center staffed with employee-agents. Our employee-agents primarily sell non-standard personal automobile insurance products underwritten by us and through third-party carriers for which we receive a commission. We also offer a variety of additional commissionable products, and, in most states, our employee-agents also sell an insurance product providing personal property and liability coverage for renters that is underwritten by us. In addition to our retail locations, we are able to complete the entire sales process over the phone via our call center or through the internet via our consumer-based website or mobile platform. On a limited basis, we also sell our products through selected retail locations operated by independent agents. Additional information about First Acceptance Corporation can be found online at www.acceptance.com.
Forward-Looking Statements
This press release contains forward-looking statements. All statements made other than statements of historical fact are forward-looking statements. You can identify these statements from our use of the word 'believe' or the negative of this term and similar expressions. These statements, which have been included in reliance on the 'safe harbor' provisions of the federal securities laws, involve risks and uncertainties. Investors are hereby cautioned that these statements may be affected by important factors, including, among others, the factors set forth under the caption 'Risk Factors' in our Annual Report for the year ended December 31, 2018 filed by the Company with the OTCQX. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
First Acceptance Corporation and Subsidiaries |
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Condensed Consolidated Statements of Income |
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(amounts in thousands, except per share data) | ||||||||
Three Months Ended |
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March 31, |
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2019 |
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| 2018 |
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Revenues | $ | 76,568 | $ | 82,707 | ||||
Income before income taxes | $ | 8,293 | $ | 7,245 | ||||
Net income | $ | 6,513 | $ | 5,440 | ||||
Net income per diluted share | $ | 0.16 | $ | 0.13 | ||||
Average diluted shares outstanding | 41,805 | 41,363 | ||||||
Statutory Combined Ratio: | ||||||||
Loss | 62.0 | % | 68.5 | % | ||||
Expense | 20.4 | % | 18.8 | % | ||||
Combined | 82.4 | % | 87.3 | % | ||||
INVESTOR RELATIONS CONTACT:
Michael J. Bodayle
615.844.2885
SOURCE: First Acceptance Corporation
View source version on accesswire.com:
https://www.accesswire.com/544540/First-Acceptance-Corporation-Reports-Operating-Results-for-the-Quarter-Ended-March-31-2019
