Homeowners of America Holding Corporation Reports Third Quarter 2015 Financial Results

Nov 11, 2015, 16:05 ET from Homeowners of America Holding Corporation

IRVING, Texas, Nov. 11, 2015 /PRNewswire/ -- 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.

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 –

 

 

Homeowners of America Holding Corporation

CONSOLIDATED BALANCE SHEETS

September 30, 2015 and December 31, 2014


 

September 30, 2015


December 31, 2014


(Unaudited)



Assets:





Cash and cash equivalents

$

8,926,241


$

5,648,278

Short-term investments


4,720,000



1,231,881

Restricted cash and investments


2,760,037



3,790,000

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



539,654

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



3,827,245

Long-term investments


10,740,000



3,430,000

Accrued investment income


62,220



55,908

Due and deferred premiums


6,089,610



5,089,131

Balance due from reinsurers


73,845,415



54,157,528

Property, equipment and software, net


305,451



344,495

Deferred policy acquisition costs


10,055,007



7,897,806

Prepaid expenses and other


1,007,668



552,728

Deferred tax assets, net


2,238,428



1,517,935







Total assets

$

124,788,581


$

88,082,589







Liabilities:












Loss and loss adjustment expenses

$

23,084,396


$

15,009,506

Advance premiums


225,769



74,172

Ceded reinsurance premiums payable


11,047,930



4,342,874

Unearned premiums


51,608,029



40,021,934

Unearned ceding commissions


15,165,517



11,200,317

Commissions payable, reinsurers and agents


3,576,637



3,754,929

General and other accrued expenses payable


4,667,386



2,232,547

Income tax payable


1,058,190



-

Taxes, licenses and other fees payable


512,282



765,782







Total liabilities


110,946,136



77,402,061

Stockholders' equity:






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



1,617

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


(131)



(131)

Additional paid-in-capital


6,386,561



6,209,265

Accumulated other comprehensive income


16,937



73

Retained earnings


7,437,438



4,469,704







Total stockholders' equity


13,842,445



10,680,528







Total liabilities and stockholders' equity

$

124,788,581


$

88,082,589

 

 

Homeowners of America Holding Corporation

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

September 30, 2015 and 2014



 

Three Months Ended

September 30,


Nine Months Ended

September 30,

Revenues:

2015



2014


2015



2014











Premiums earned

$

21,635,656



$

16,893,086


$

59,946,870



$

46,933,714

Ceded premiums


(20,245,090)




(16,046,107)



(56,058,053)




(43,539,301)

Net premiums earned


1,390,566




846,979



3,888,817




3,394,413

Policy fees


2,032,200




1,578,900



5,201,525




4,188,500

Ceding commissions and reinsurance profit share


6,140,538




5,078,682



17,135,111




12,375,912

Loss adjustment and other fee income


445,198




334,277



1,593,014




1,159,478

Investment income, net of investment expenses


37,760




10,647



85,726




19,888

Net realized investment losses


(4,833)




-



(3,833)




-















Total revenue


10,041,429




7,849,485



27,900,360




21,138,191















Expenses:




























Losses and loss adjustment expenses


496,205




554,486



3,636,976




1,990,625

Policy acquisition and other underwriting expenses


5,404,148




4,521,009



14,766,957




11,939,855

General and administrative expenses


1,623,008




1,246,887



4,931,052




4,197,353















Total expenses


7,523,361




6,322,382



23,334,985




18,127,833















Income before income taxes


2,518,068




1,527,103



4,565,375




3,010,358















Provision (benefit) for income taxes:














Current


1,114,995




680,040



2,318,134




1,602,315

Deferred


(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

Diluted income per common share

$

0.09



$

0.06


$

0.17



$

0.11

Cash dividend declared per common share

$

-



$

-


$

-



$

-

 

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SOURCE Homeowners of America Holding Corporation



RELATED LINKS

http://www.hoaic.com