-
Revenues of $183.9 million for the quarter, up 24.2% from the prior
year period. -
Net income before non-controlling interests of $4.3 million for the
quarter, a decrease of $24.7 million driven by the non-repeat gain on
sale of Care in the prior year period. -
Operating EBITDA(1) of $12.6 million for
the quarter, an increase of $3.7 million, or 41.6% from the prior year
period. -
Book value per share(2) as of March 31,
2019 was $11.12, which including dividends paid represents a 6.3%(3)
year over year return. -
Declared a dividend of $0.04 per share (an increase of 14.3%) to
stockholders of record on May 20, 2019 with a payment date of May 27,
2019.
NEW YORK–(BUSINESS WIRE)–Tiptree Inc. (NASDAQ:TIPT) (“Tiptree” or the “Company”), a holding
company that combines specialty insurance operations with investment
management, today announced its financial results for the three months
ended March 31, 2019.
|
Summary Consolidated Statements of Operations
|
|||||||
| ($ in millions, except per share information) | Three Months Ended March 31, | ||||||
|
GAAP: |
2019 | 2018 | |||||
| Total revenues | $ | 183.9 | $ | 148.1 | |||
| Net income before non-controlling interests | $ | 4.3 | $ | 29.0 | |||
| Net income attributable to Common Stockholders | $ | 3.9 | $ | 23.6 | |||
| Diluted earnings per share | $ | 0.11 | $ | 0.79 | |||
|
Non-GAAP: (1) |
|||||||
| Operating EBITDA | $ | 12.6 | $ | 8.9 | |||
| Adjusted EBITDA | $ | 14.6 | $ | 5.4 | |||
| Book value per share (2) | $ | 11.12 | $ | 10.59 | |||
|
(1) |
For further information relating to the Company’s Operating |
|
|
(2) |
For periods prior to April 10, 2018, book value per share assumed |
|
|
(3) |
Total return per share as of March 31, 2019 defined as cumulative |
|
Earnings Conference Call
Tiptree will host a conference call on Tuesday, May 7, 2019 at 9:00 a.m.
Eastern Time to discuss its first quarter 2019 financial results. A copy
of our investor presentation, 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.tiptreeinc.com.
The conference call will be available via live or archived webcast at http://www.investors.tiptreeinc.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 Tuesday, May 7, 2019 at 1:00
p.m. Eastern Time, until midnight Eastern on Tuesday, May 14, 2019. To
listen to the replay, please dial 1-844-512-2921 (domestic) or
1-412-317-6671 (international), Passcode: 13689359.
Q1’19 Financial Overview
Overall:
-
Delivered quarterly return of 3.1%, as measured by growth in book
value per share plus dividends paid. -
Year-to-date 2019, we purchased and retired 1,472,730 shares of our
Common Stock for $9.1 million through open market and block purchases. -
Increased our quarterly dividend for the third consecutive year to
$0.04 per share, a 14.3% increase.
Insurance:
-
Gross written premiums for first quarter 2019 were $198.4 million,
with net written premiums of $121.0 million, up 10.8%, driven by
growth in credit and warranty products. -
Continued to expand product offerings while maintaining a consistent
combined ratio of 93.5%. -
Within our insurance investment portfolio, we reduced our exposure to
levered credit by selling approximately $80.0 million of assets and
repaying asset-based debt.
Tiptree Capital:
-
In 2019, began re-positioning our asset management platform, by
agreeing to invest $75 million to seed new investment funds in
exchange for management control of, and a profit participation in,
Corvid Peak (formerly known as Tricadia).
Consolidated Results of Operations
Revenues
For the three months ended March 31, 2019, revenues were $183.9 million,
which increased $35.8 million, or 24.2%, over the prior year period. The
increase was driven by growth in earned premiums, service and
administrative fees, and realized and unrealized gains. Earned premiums
were $119.0 million for the three months ended March 31, 2019, up from
$101.6 million in the comparable 2018 period driven by growth in net
written premiums. The combination of unearned premiums and deferred
revenues on the balance sheet grew by $84.9 million, or 14.7%, from
March 31, 2018 to March 31, 2019 as a result of increased written
premiums in credit protection, warranty and other specialty programs.
Net Income before non-controlling interests
For the three months ended March 31, 2019, net income before
non-controlling interests was $4.3 million compared to $29.0 million in
the 2018 period, a decrease of $24.7 million. The decrease was driven by
the non-repeat gain on sale of Care in 2018, partially offset by
improved insurance operating performance and increased realized and
unrealized gains on investments within Tiptree Capital and our insurance
investment portfolio.
Net Income Available to Common Stockholders
For the three months ended March 31, 2019, net income available to
Common Stockholders was $3.9 million, a decrease of $19.6 million from
the prior year period. The key drivers of net income available to Common
Stockholders were the same factors which impacted the net income before
non-controlling interests.
Income before taxes (from continuing and discontinued operations)
The table below highlights key drivers impacting our consolidated
results on a pre-tax basis. Many of our investments are carried at fair
value and marked to market through unrealized gains and losses. As a
result, we expect our earnings relating to these investments to be
relatively volatile between periods in contrast to our fixed income
securities, which are marked to market through accumulated other
comprehensive income (“AOCI”) in stockholders equity. On February 1,
2018, we sold our senior living operations to Invesque in exchange for a
net of 16.6 million shares of Invesque common stock which resulted in a
pre-tax gain on sale of $56.9 million in 2018, of which $46.2 million
was recorded in the three months ended March 31, 2018.
| ($ in millions) | Three Months Ended March 31, | |||||||||
| 2019 | 2018 | |||||||||
| Net realized and unrealized gains (losses)(1) | $ | 4.0 | $ | (7.7 | ) | |||||
| Discontinued operations (Care)(2) | $ | — | $ | 46.8 | ||||||
|
(1) |
Excludes Mortgage realized and unrealized gains and losses – |
|
|
(2) |
Represents Care for the three months ended March 31, 2018 |
|
Non-GAAP
Management uses Operating EBITDA, Adjusted EBITDA and book value per
share as measurements of operating performance which are non-GAAP
measures. Management believes the use of Operating EBITDA and Adjusted
EBITDA provides supplemental information useful to investors as they are
frequently used by the financial community to analyze financial
performance, and to analyze a company’s ability to service its debt and
to facilitate comparison among companies. Management uses Operating
EBITDA as part of its capital allocation process and to assess
comparative returns on invested capital amongst our businesses and
investments. Adjusted EBITDA is also used in determining incentive
compensation for the Company’s executive officers. Operating EBITDA and
Adjusted EBITDA are not measurements of financial performance or
liquidity under GAAP and should not be considered as an alternative or
substitute for GAAP net income. Management believes the use of book
value per share provides supplemental information useful to investors as
it is frequently used by the financial community to analyze company
growth on a relative per share basis.
Operating EBITDA for the three months ended March 31, 2019 was $12.6
million compared to $8.9 million for the 2018 period, an increase of
$3.7 million, or 41.6%. The key drivers of the change were driven by
increased Operating EBITDA from specialty insurance operations, improved
performance in Tiptree Capital, and reduced corporate expenses.
Total stockholders’ equity was $394.6 million as of March 31, 2019
compared to $407.7 million as of March 31, 2018, primarily driven by net
income, more than offset by share repurchases and dividends paid. Over
the past twelve months, Tiptree returned $28.0 million to shareholders
through share repurchases and dividends paid. Book value per share for
the period ended March 31, 2019 was $11.12, an increase from book value
per share, as exchanged, of $10.59 as of March 31, 2018. The key drivers
of the period-over-period impact were earnings per share and the
purchase of 3.6 million shares at an average 40% discount to book value.
Those increases were partially offset by dividends paid of $0.135 per
share and officer compensation share issuances.
Results by Segment
Tiptree is a holding company that combines insurance operations with
investment management capabilities. Our principal operating subsidiary
is a leading provider of specialty insurance products and related
services. We also allocate capital across a broad spectrum of
businesses, assets and other investments, which we refer to as Tiptree
Capital. As such, we classify our business into one reportable segment,
specialty insurance, with the remainder of our non-insurance operations
aggregated into Tiptree Capital. Corporate activities include holding
company interest expense, employee compensation and benefits, and other
expenses. The following table presents the components of total pre-tax
income including continuing and discontinued operations.
Pre-tax Income
| ($ in millions) | Three Months Ended March 31, | |||||||||
| 2019 | 2018 | |||||||||
| Specialty Insurance | $ | 8.1 | $ | 1.3 | ||||||
| Tiptree Capital | 5.9 | (1.7 | ) | |||||||
| Corporate | (8.9 | ) | (6.7 | ) | ||||||
| Pre-tax income (loss) from continuing operations | $ | 5.1 | $ | (7.1 | ) | |||||
| Pre-tax income (loss) from discontinued operations (1) | $ | — | $ | 46.8 | ||||||
|
(1) |
Represents Care for the three months ended March 31, 2018 which |
|
Operating EBITDA – Non-GAAP (1)
The following tables present the components of Operating EBITDA.
| ($ in millions) | Three Months Ended March 31, | ||||||||||
| 2019 | 2018 | ||||||||||
| Specialty Insurance | $ | 13.7 | $ | 13.3 | |||||||
| Tiptree Capital (2) | 4.7 | 3.3 | |||||||||
| Corporate | (5.8 | ) | (7.7 | ) | |||||||
| Operating EBITDA | $ | 12.6 | $ | 8.9 | |||||||
| (1) |
For further information relating to the Company’s Total Capital and Operating EBITDA, including a reconciliation to GAAP total stockholders equity and pre-tax income, see “—Non-GAAP Reconciliations.” |
|
| (2) |
Includes discontinued operations related to Care. As of February 1, 2018, invested capital from Care discontinued operations is represented by our investment in Invesque common shares. For more information, see “Note—(3) Dispositions, Assets Held for Sale and Discontinued Operations” in our Form 10-Q for the quarter ended March 31, 2019. |
|
About Tiptree
Tiptree Inc. (NASDAQ: TIPT) is a holding company that combines insurance
operations with investment management expertise. The Company’s principal
operating subsidiary is a leading provider of specialty insurance
products and related services, including credit protection, warranty,
and programs which underwrite niche personal and commercial lines of
insurance. The Company also allocates capital across a broad spectrum of
investments, which is referred to as Tiptree Capital. Today, Tiptree
Capital consists of asset management operations, mortgage operations and
other investments. For more information, please visit www.tiptreeinc.com.
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 Inc. Condensed Consolidated Balance Sheet ($ in thousands, except share data) |
||||||||
| As of | ||||||||
| March 31, 2019 | December 31, 2018 | |||||||
| Assets: | ||||||||
| Investments: | ||||||||
| Available for sale securities, at fair value | $ | 283,929 | $ | 283,563 | ||||
| Loans, at fair value | 125,145 | 215,383 | ||||||
| Equity securities | 122,592 | 122,979 | ||||||
| Other investments | 76,741 | 75,002 | ||||||
| Total investments | 608,407 | 696,927 | ||||||
| Cash and cash equivalents | 88,079 | 86,003 | ||||||
| Restricted cash | 13,062 | 10,521 | ||||||
| Notes and accounts receivable, net | 231,990 | 223,105 | ||||||
| Reinsurance receivables | 420,996 | 420,351 | ||||||
| Deferred acquisition costs | 170,727 | 170,063 | ||||||
| Goodwill | 91,562 | 91,562 | ||||||
| Intangible assets, net | 50,098 | 52,121 | ||||||
| Other assets | 70,465 | 46,034 | ||||||
| Assets held for sale | 69,454 | 68,231 | ||||||
| Total assets | $ | 1,814,840 | $ | 1,864,918 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Liabilities: | ||||||||
| Debt, net | $ | 282,798 | $ | 354,083 | ||||
| Unearned premiums | 589,074 | 599,444 | ||||||
| Policy liabilities and unpaid claims | 130,585 | 131,611 | ||||||
| Deferred revenue | 75,276 | 75,754 | ||||||
| Reinsurance payable | 115,029 | 117,597 | ||||||
| Other liabilities and accrued expenses | 163,224 | 124,190 | ||||||
| Liabilities held for sale | 64,199 | 62,980 | ||||||
| Total liabilities | $ | 1,420,185 | $ | 1,465,659 | ||||
| Stockholders’ Equity: | ||||||||
|
Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued or outstanding |
$ | — | $ | — | ||||
|
Common Stock: $0.001 par value, 200,000,000 shares authorized, 34,505,781 and 35,870,348 shares issued and outstanding, respectively |
35 | 36 | ||||||
| Additional paid-in capital | 323,334 | 331,892 | ||||||
| Accumulated other comprehensive income (loss), net of tax | 251 | (2,058 | ) | |||||
| Retained earnings | 60,015 | 57,231 | ||||||
| Total Tiptree Inc. stockholders’ equity | 383,635 | 387,101 | ||||||
| Non-controlling interests – Other | 11,020 | 12,158 | ||||||
| Total stockholders’ equity | 394,655 | 399,259 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,814,840 | $ | 1,864,918 | ||||
|
Tiptree Inc. Condensed Consolidated Statements of Operations ($ in thousands, except share data) |
||||||||
|
Three Months Ended March 31, |
||||||||
| 2019 | 2018 | |||||||
| Revenues: | ||||||||
| Earned premiums, net | $ | 118,973 | $ | 101,645 | ||||
| Service and administrative fees | 25,895 | 24,576 | ||||||
| Ceding commissions | 2,504 | 2,283 | ||||||
| Net investment income | 4,301 | 4,205 | ||||||
| Net realized and unrealized gains (losses) | 20,151 | 7,384 | ||||||
| Other revenue | 12,079 | 7,979 | ||||||
| Total revenues | 183,903 | 148,072 | ||||||
| Expenses: | ||||||||
| Policy and contract benefits | 40,841 | 36,626 | ||||||
| Commission expense | 74,903 | 62,633 | ||||||
| Employee compensation and benefits | 29,153 | 27,788 | ||||||
| Interest expense | 6,920 | 5,946 | ||||||
| Depreciation and amortization | 3,094 | 2,957 | ||||||
| Other expenses | 23,837 | 19,165 | ||||||
| Total expenses | 178,748 | 155,115 | ||||||
| Income (loss) before taxes from continuing operations | 5,155 | (7,043 | ) | |||||
| Less: provision (benefit) for income taxes | 854 | (1,568 | ) | |||||
| Net income (loss) from continuing operations | 4,301 | (5,475 | ) | |||||
| Discontinued operations: | ||||||||
| Income (loss) before taxes from discontinued operations | — | 624 | ||||||
| Gain on sale of discontinued operations | — | 46,184 | ||||||
| Less: Provision (benefit) for income taxes | — | 12,327 | ||||||
| Net income (loss) from discontinued operations | — | 34,481 | ||||||
| Net income (loss) before non-controlling interests | 4,301 | 29,006 | ||||||
|
Less: net income (loss) attributable to non-controlling interests – TFP |
— | 5,392 | ||||||
|
Less: net income (loss) attributable to non-controlling interests – Other |
376 | 54 | ||||||
| Net income (loss) attributable to Common Stockholders | $ | 3,925 | $ | 23,560 | ||||
|
Net income (loss) per Common Share: |
||||||||
| Basic, continuing operations, net | $ | 0.11 | $ | (0.15 | ) | |||
| Basic, discontinued operations, net | — | 0.94 | ||||||
| Basic earnings per share | $ | 0.11 | $ | 0.79 | ||||
| Diluted, continuing operations, net | 0.11 | (0.15 | ) | |||||
| Diluted, discontinued operations, net | — | 0.94 | ||||||
| Diluted earnings per share | $ | 0.11 | $ | 0.79 | ||||
|
Weighted average number of Common Shares: |
||||||||
| Basic | 34,673,054 | 29,861,496 | ||||||
| Diluted | 34,673,054 | 29,861,496 | ||||||
| Dividends declared per Common Share | $ | 0.040 | $ | 0.035 | ||||
Tiptree Inc.
Non-GAAP Reconciliations (Unaudited)
Non-GAAP Financial Measures — Adjusted EBITDA
and Operating EBITDA
The Company defines Adjusted EBITDA as GAAP net income of the Company
adjusted to add (i) corporate interest expense, consolidated income
taxes and consolidated depreciation and amortization expense, (ii)
adjust for the effect of purchase accounting, (iii) adjust for non-cash
fair value adjustments, and (iv) any significant non-recurring expenses.
Operating EBITDA represents Adjusted EBITDA plus stock based
compensation expense, less realized and unrealized gains and losses and
less third party non-controlling interests. Operating EBITDA and
Adjusted EBITDA are not measurements of financial performance or
liquidity under GAAP and should not be considered as an alternative or
substitute for GAAP net income.
| ($ in millions) | Three Months Ended March 31, | ||||||||
| 2019 | 2018 | ||||||||
| Net income (loss) attributable to Common Stockholders | $ | 3.9 | $ | 23.6 | |||||
| Add: net (loss) income attributable to noncontrolling interests | 0.4 | 5.4 | |||||||
| Less: net income from discontinued operations | — | 34.5 | |||||||
| Income (loss) from continuing operations | $ | 4.3 | $ | (5.5 | ) | ||||
| Corporate Debt related interest expense(1) | 5.0 | 3.8 | |||||||
| Consolidated income tax expense (benefit) | 0.9 | (1.6 | ) | ||||||
| Depreciation and amortization expense(2) | 3.0 | 2.8 | |||||||
| Non-cash fair value adjustments(3) | (0.6 | ) | 0.1 | ||||||
| Non-recurring expenses(4) | 2.0 | (0.3 | ) | ||||||
| Adjusted EBITDA from continuing operations | $ | 14.6 | $ | (0.7 | ) | ||||
| Add: Stock-based compensation expense | 1.4 | 1.2 | |||||||
| Add: Vessel depreciation, net of capital expenditures | 0.6 | — | |||||||
| Less: Realized and unrealized gain (loss)(5) | 4.0 | (7.7 | ) | ||||||
| Less: Third party non-controlling interests(6) | — | (0.1 | ) | ||||||
| Operating EBITDA from continuing operations | $ | 12.6 | $ | 8.3 | |||||
| Income (loss) from discontinued operations | $ | — | $ | 34.5 | |||||
| Consolidated income tax expense (benefit) | — | 12.3 | |||||||
| Non-cash fair value adjustments (3) | — | (40.7 | ) | ||||||
| Adjusted EBITDA from discontinued operations | $ | — | $ | 6.1 | |||||
| Less: Realized and unrealized gain (loss) (5) | — | 5.5 | |||||||
| Operating EBITDA from discontinued operations | $ | — | $ | 0.6 | |||||
| Total Adjusted EBITDA | $ | 14.6 | $ | 5.4 | |||||
| Total Operating EBITDA | $ | 12.6 | $ | 8.9 | |||||
|
_______________ |
||
| (1) |
Corporate Debt interest expense includes Secured corporate credit agreements, junior subordinated notes and preferred trust securities. Interest expense associated with asset-specific debt in specialty insurance and asset management, mortgage and other operations is not added-back for Adjusted EBITDA and Operating EBITDA. |
|
| (2) |
Represents total depreciation and amortization expense less purchase accounting amortization related adjustments at the Insurance Company. Following the purchase accounting adjustments, current period expenses associated with deferred costs were more favorably stated and current period income associated with deferred revenues were less favorably stated. Thus, the purchase accounting effect related to our Insurance company increased EBITDA above what the historical basis of accounting would have generated. |
|
| (3) |
For our specialty insurance operations, depreciation and amortization on senior living real estate that is within net investment income is added back to Adjusted EBITDA. For Care (Discontinued Operations), the reduction in EBITDA is related to accumulated depreciation and amortization, and certain operating expenses, which were previously included in Adjusted EBITDA in prior periods. |
|
| (4) |
Acquisition, start-up and disposition costs including debt extinguishment, legal, taxes, banker fees and other costs. In 2018, includes payments pursuant to a separation agreement, dated November 10, 2015. |
|
| (5) |
Adjustment excludes Mortgage realized and unrealized gains and losses – Performing and NPLs as those are recurring in nature and align with those business models. |
|
| (6) |
Removes the Operating EBITDA associated with third party non-controlling interests. Does not remove the non-controlling interests related to employee based shares. |
|
Non-GAAP Financial Measures — Adjusted EBITDA
and Operating EBITDA
The tables below present Adjusted EBITDA and Operating EBITDA by
business component.
| Three Months Ended March 31, 2019 | |||||||||||||||||
| ($ in millions) |
Specialty |
Tiptree |
Corporate |
Total | |||||||||||||
| Pre-tax income/(loss) from continuing ops | $ | 8.1 | $ | 5.9 | $ | (8.9 | ) | $ | 5.1 | ||||||||
|
Adjustments: |
|||||||||||||||||
| Corporate Debt related interest expense(2) | 3.4 | — | 1.6 | 5.0 | |||||||||||||
| Depreciation and amortization expenses(3) | 2.2 | 0.8 | 0.1 | 3.1 | |||||||||||||
| Non-cash fair value adjustments(4) | — | (0.6 | ) | — | (0.6 | ) | |||||||||||
| Non-recurring expenses(5) | 1.3 | — | 0.7 | 2.0 | |||||||||||||
| Adjusted EBITDA | $ | 15.0 | $ | 6.1 | $ | (6.5 | ) | $ | 14.6 | ||||||||
| Add: Stock-based compensation expense | 0.6 | 0.1 | 0.7 | 1.4 | |||||||||||||
| Add: Vessel depreciation, net of capital expenditures | — | 0.6 | — | 0.6 | |||||||||||||
| Less: Realized and unrealized gain (loss)(6) | 1.9 | 2.1 | — | 4.0 | |||||||||||||
| Operating EBITDA | $ | 13.7 | $ | 4.7 | $ | (5.8 | ) | $ | 12.6 | ||||||||
| Three Months Ended March 31, 2018 | |||||||||||||||||
| ($ in millions) |
Specialty |
Tiptree |
Corporate |
Total | |||||||||||||
| Pre-tax income/(loss) from continuing ops | $ | 1.3 | $ | (1.7 | ) | $ | (6.7 | ) | $ | (7.1 | ) | ||||||
| Pre-tax income/(loss) from discontinued ops | — | 46.8 | — | 46.8 | |||||||||||||
|
Adjustments: |
|||||||||||||||||
| Corporate Debt related interest expense(2) | 3.2 | — | 0.6 | 3.8 | |||||||||||||
| Depreciation and amortization expenses(3) | 2.5 | 0.2 | 0.1 | 2.8 | |||||||||||||
| Non-cash fair value adjustments(4) | 0.1 | (40.7 | ) | — | (40.6 | ) | |||||||||||
| Non-recurring expenses(5) | 1.1 | 0.9 | (2.3 | ) | (0.3 | ) | |||||||||||
| Adjusted EBITDA | $ | 8.2 | $ | 5.5 | $ | (8.3 | ) | $ | 5.4 | ||||||||
| Add: Stock-based compensation expense | 0.6 | $ | — | 0.6 | 1.2 | ||||||||||||
| Less: Realized and unrealized gain (loss)(6) | (4.5 | ) | 2.3 | — | (2.2 | ) | |||||||||||
| Less: Third party non-controlling interests(7) | — | (0.1 | ) | — | (0.1 | ) | |||||||||||
| Operating EBITDA | $ | 13.3 | $ | 3.3 | $ | (7.7 | ) | $ | 8.9 | ||||||||
|
_______________ |
||
|
The footnotes below correspond to the tables above, under |
||
| (1) |
Includes discontinued operations related to Care. For more |
|
| (2) |
Corporate Debt interest expense includes Secured corporate credit agreements, junior subordinated notes and preferred trust securities. Interest expense associated with asset-specific debt in specialty insurance and asset management, mortgage and other operations is not added-back for Adjusted EBITDA and Operating EBITDA. |
|
| (3) |
Represents total depreciation and amortization expense less purchase accounting amortization related adjustments at the Insurance Company. Following the purchase accounting adjustments, current period expenses associated with deferred costs were more favorably stated and current period income associated with deferred revenues were less favorably stated. Thus, the purchase accounting effect related to our Insurance company increased EBITDA above what the historical basis of accounting would have generated. |
|
| (4) |
For our specialty insurance operations, depreciation and amortization on senior living real estate that is within net investment income is added back to Adjusted EBITDA. For Care (Discontinued Operations), the reduction in EBITDA is related to accumulated depreciation and amortization, and certain operating expenses, which were previously included in Adjusted EBITDA in prior periods. |
|
| (5) |
Acquisition, start-up and disposition costs including debt extinguishment, legal, taxes, banker fees and other costs. In 2018, includes payments pursuant to a separation agreement, dated November 10, 2015. |
|
| (6) |
Adjustment excludes Mortgage realized and unrealized gains and losses – Performing and NPLs as those are recurring in nature and align with those business models. |
|
| (7) |
Removes the Operating EBITDA associated with third party non-controlling interests. Does not remove the non-controlling interests related to employee based shares. |
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Contacts
Tiptree Inc.
Investor Relations, 212-446-1400
[email protected]
