We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Tiptree Inc | NASDAQ:TIPT | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 19.75 | 20.08 | 21.52 | 0 | 12:00:00 |
Tiptree Inc. (NASDAQ:TIPT) (“Tiptree” or the “Company”), today announced its financial results for the three and six months ended June 30, 2024.
“We are extremely pleased with the second quarter results and remain well-positioned for future growth,” said Tiptree’s Executive Chairman, Michael Barnes. “Fortegra posted record results in the first half with growth in revenues of 34% and adjusted net income of 40%. As always, we remain committed to growing long term shareholder value and will continue to seek constructive ways to more fully reflect the intrinsic value of Tiptree’s businesses in our share price.”
Three Months Ended June 30,
Six Months Ended June 30,
($ in thousands, except per share information)
2024
2023
2024
2023
Total revenues
$
546,673
$
404,518
$
1,044,894
$
786,143
Net income (loss) attributable to common stockholders
$
12,851
$
5,989
$
21,901
$
4,927
Diluted earnings per share
$
0.31
$
0.16
$
0.54
$
0.13
Cash dividends paid per common share
$
0.06
$
0.05
$
0.12
$
0.10
Return on average equity
11.9
%
6.0
%
10.3
%
2.5
%
Non-GAAP: (1)
Adjusted net income
$
24,422
$
17,630
$
44,955
$
30,189
Adjusted return on average equity
22.7
%
17.6
%
21.1
%
15.1
%
(1) See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures. Adjusted net income is presented after the impacts of non-controlling interests.
Second Quarter 2024 Summary
Year-to-date 2024 Summary
Segment Financial Highlights - Second Quarter 2024
Insurance (The Fortegra Group):
Three Months Ended June 30,
Six Months Ended June 30,
($ in thousands)
2024
2023
2024
2023
Gross written premiums and premium equivalents
$
776,059
$
716,063
$
1,439,476
$
1,337,221
Net written premiums
$
365,897
$
320,572
$
684,048
$
601,718
Total revenues
$
529,942
$
384,677
$
1,008,698
$
753,121
Income before taxes
$
51,250
$
30,417
$
88,061
$
49,862
Return on average equity
28.4
%
23.1
%
25.8
%
20.2
%
Combined ratio
89.9
%
90.2
%
90.0
%
90.8
%
Non-GAAP: (1)
Adjusted net income
$
40,316
$
30,119
$
74,449
$
53,058
Adjusted return on average equity
30.3
%
32.4
%
29.7
%
29.6
%
(1) See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures. Adjusted net income is presented before the impacts of non-controlling interests.
Tiptree Capital:
Three Months Ended June 30,
Six Months Ended June 30,
($ in thousands)
2024
2023
2024
2023
Total revenues
$
16,731
$
19,841
$
36,196
$
33,022
Income before taxes
$
740
$
2,767
$
4,486
$
1,644
Return on average equity
1.7
%
3.9
%
4.6
%
1.4
%
Non-GAAP: (1)
Adjusted net income
$
356
$
10
$
700
$
570
Adjusted return on average equity
1.2
%
—
%
1.0
%
0.7
%
(1) See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures. Adjusted net income is presented before the impacts of non-controlling interests.
Corporate:
Corporate includes expenses of the holding company for employee compensation and benefits, audit and professional fees, and public company and other expenses. For the quarter, corporate expenses were $11.3 million compared to $9.5 million in Q2'23 driven by increased incentive compensation accruals.
Non-GAAP
Management uses Adjusted net income and Adjusted return on average equity as measurements of operating performance. Management believes these measures provide supplemental information useful to investors as they are frequently used by the financial community to analyze financial performance and comparison among companies. Management uses Adjusted net income and adjusted return on average equity as part of its capital allocation process and to assess comparative returns on invested capital. Adjusted net income represents income before taxes, less provision (benefit) for income taxes, and excluding the after-tax impact of various expenses that we consider to be unique and non-recurring in nature, stock-based compensation, net realized and unrealized gains (losses), and intangibles amortization associated with purchase accounting, all of which is reduced for non-controlling interests. Adjusted net income and Adjusted return on average equity are presented before the impacts of non-controlling interests. Adjusted net income and Adjusted return on average equity are not measurements of financial performance or liquidity under GAAP and should not be considered as an alternative or substitute for GAAP net income. See “Non-GAAP Reconciliations” for a reconciliation of these measures to their GAAP equivalents.
Earnings Conference Call
Tiptree will host a conference call on Thursday, August 1, 2024 at 10:30 a.m. Eastern Time to discuss its Q2 2024 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 https://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 Thursday, August 1, 2024 at 1:30 p.m. Eastern Time, until midnight Eastern on Thursday, August 8, 2024. To listen to the replay, please dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international), Passcode: 13746746.
About Tiptree
Tiptree Inc. (NASDAQ: TIPT) allocates capital to select small and middle market companies with the mission of building long-term value. Established in 2007, Tiptree has a significant track record investing across a variety of industries and asset types, including the insurance, asset management, specialty finance, real estate and shipping sectors. With proprietary access and a flexible capital base, Tiptree seeks to uncover compelling investment opportunities and support management teams in unlocking the full value potential of their businesses. For more information, please visit tiptreeinc.com and follow us on LinkedIn.
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 for our businesses and intentions. In addition, we make certain forward-looking statements regarding the Company’s plans to take Fortegra public. Any initial public offering by Fortegra would be subject to a variety of factors, including market conditions, and may not be consummated. 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 Sheets
($ in thousands, except share data)
As of
June 30, 2024
December 31, 2023
Assets:
Investments:
Available for sale securities, at fair value, net of allowance for credit losses
$
825,223
$
802,609
Loans, at fair value
74,326
69,556
Equity securities
69,499
68,308
Other investments
59,337
111,088
Total investments
1,028,385
1,051,561
Cash and cash equivalents
497,343
468,711
Restricted cash
108,034
23,850
Notes and accounts receivable, net
779,105
684,608
Reinsurance recoverable
904,692
953,886
Prepaid reinsurance premiums
962,159
900,524
Deferred acquisition costs
545,033
565,746
Goodwill
205,972
206,155
Intangible assets, net
110,835
118,757
Other assets
163,152
165,515
Total assets
$
5,304,710
$
5,139,313
Liabilities and Stockholders’ Equity
Liabilities:
Debt, net
$
387,338
$
402,411
Unearned premiums
1,671,294
1,695,058
Policy liabilities and unpaid claims
1,087,203
844,848
Deferred revenue
683,513
673,085
Reinsurance payable
478,168
543,602
Other liabilities and accrued expenses
379,125
403,744
Total liabilities
$
4,686,641
$
4,562,748
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, 36,785,305 and 36,756,187 shares issued and outstanding, respectively
37
37
Additional paid-in capital
387,513
382,239
Accumulated other comprehensive income (loss), net of tax
(29,216
)
(26,073
)
Retained earnings
78,115
60,663
Total Tiptree Inc. stockholders’ equity
436,449
416,866
Non-controlling interests:
Fortegra preferred interests
77,679
77,679
Common interests
103,941
82,020
Total non-controlling interests
181,620
159,699
Total stockholders’ equity
618,069
576,565
Total liabilities and stockholders’ equity
$
5,304,710
$
5,139,313
Tiptree Inc.
Condensed Consolidated Statements of Operations
($ in thousands, except share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Revenues:
Earned premiums, net
$
398,467
$
269,795
$
745,777
$
535,125
Service and administrative fees
105,847
98,113
216,334
190,145
Ceding commissions
5,065
4,676
7,809
8,321
Net investment income
6,381
9,088
13,139
14,197
Net realized and unrealized gains (losses)
12,578
8,825
28,202
11,002
Other revenue
18,335
14,021
33,633
27,353
Total revenues
546,673
404,518
1,044,894
786,143
Expenses:
Policy and contract benefits
233,975
147,734
441,639
289,409
Commission expense
173,279
142,699
330,227
289,149
Employee compensation and benefits
49,917
44,383
99,103
85,181
Interest expense
8,015
7,044
16,305
13,509
Depreciation and amortization
5,291
5,875
10,859
11,128
Other expenses
35,550
33,109
76,416
65,920
Total expenses
506,027
380,844
974,549
754,296
Income (loss) before taxes
40,646
23,674
70,345
31,847
Less: provision (benefit) for income taxes
18,673
11,824
32,491
16,846
Net income (loss)
21,973
11,850
37,854
15,001
Less: net income (loss) attributable to non-controlling interests
9,122
5,861
15,953
10,074
Net income (loss) attributable to common stockholders
$
12,851
$
5,989
$
21,901
$
4,927
Net income (loss) per common share:
Basic earnings per share
$
0.35
$
0.16
$
0.59
$
0.13
Diluted earnings per share
$
0.31
$
0.16
$
0.54
$
0.13
Weighted average number of common shares:
Basic
36,785,305
36,742,295
36,777,557
36,633,226
Diluted
37,752,682
37,585,811
37,766,573
37,509,660
Dividends declared per common share
$
0.06
$
0.05
$
0.12
$
0.10
Tiptree Inc.
Non-GAAP Reconciliations (Unaudited)
Non-GAAP Financial Measures — Adjusted net income and Adjusted return on average equity
Adjusted net income is defined as income before taxes, less provision (benefit) for income taxes, and excluding the after-tax impact of various expenses that we consider to be unique and non-recurring in nature, including merger and acquisition related expenses, stock-based compensation, net realized and unrealized gains (losses) and intangibles amortization associated with purchase accounting, all of which is reduced for non-controlling interests. The calculation of adjusted net income excludes net realized and unrealized gains (losses) that relate to investments or assets rather than business operations. Adjusted net income is presented before the impacts of non-controlling interests. Adjusted return on average equity represents adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. Management uses Adjusted net income and adjusted return on average equity as part of its capital allocation process and to assess comparative returns on invested capital. We believe adjusted net income provides additional clarity on the results of the Company’s underlying business operations as a whole for the periods presented by excluding distortions created by the unpredictability and volatility of realized and unrealized gains (losses). We also believe adjusted net income provides useful supplemental information to investors as it is frequently used by the financial community to analyze financial performance between periods and for comparison among companies.
Three Months Ended June 30, 2024
Tiptree Capital
($ in thousands)
Insurance
Mortgage
Other
Corporate
Total
Income (loss) before taxes
$
51,250
$
528
$
212
$
(11,344
)
$
40,646
Less: Income tax (benefit) expense
(13,568
)
(113
)
(116
)
(4,876
)
(18,673
)
Less: Net realized and unrealized gains (losses) (1)
(2,545
)
(289
)
103
—
(2,731
)
Plus: Intangibles amortization (2)
3,727
—
—
—
3,727
Plus: Stock-based compensation expense
1,022
—
—
2,375
3,397
Plus: Non-recurring expenses (3)
166
—
—
—
166
Plus: Non-cash fair value adjustments (4)
861
—
—
—
861
Plus: Impact of tax deconsolidation of Fortegra(5)
—
—
—
6,357
6,357
Less: Tax on adjustments (6)
(597
)
55
(24
)
(405
)
(971
)
Adjusted net income (before NCI)
$
40,316
$
181
$
175
$
(7,893
)
$
32,779
Less: Impact of non-controlling interests
(8,357
)
—
—
—
(8,357
)
Adjusted net income
$
31,959
$
181
$
175
$
(7,893
)
$
24,422
Adjusted net income (before NCI)
$
40,316
$
181
$
175
$
(7,893
)
$
32,779
Average stockholders’ equity
$
531,447
$
53,092
$
66,580
$
(42,766
)
$
608,353
Adjusted return on average equity (7)
30.3
%
1.4
%
1.1
%
NM%
21.6
%
Three Months Ended June 30, 2023
Tiptree Capital
($ in thousands)
Insurance
Mortgage
Other
Corporate
Total
Income (loss) before taxes
$
30,417
$
1,312
$
1,455
$
(9,510
)
$
23,674
Less: Income tax (benefit) expense
(8,928
)
(306
)
(497
)
(2,093
)
(11,824
)
Less: Net realized and unrealized gains (losses) (1)
4,379
(1,588
)
(1,063
)
—
1,728
Plus: Intangibles amortization (2)
3,895
—
—
—
3,895
Plus: Stock-based compensation expense
488
—
—
1,504
1,992
Plus: Non-recurring expenses (3)
238
—
—
—
238
Plus: Non-cash fair value adjustments (4)
(46
)
—
—
—
(46
)
Plus: Impact of tax deconsolidation of Fortegra (5)
—
—
—
3,500
3,500
Less: Tax on adjustments (6)
(324
)
373
324
274
647
Adjusted net income (before NCI)
$
30,119
$
(209
)
$
219
$
(6,325
)
$
23,804
Less: Impact of non-controlling interests
(6,174
)
—
—
—
(6,174
)
Adjusted net income
$
23,945
$
(209
)
$
219
$
(6,325
)
$
17,630
Adjusted net income (before NCI)
$
30,119
$
(209
)
$
219
$
(6,325
)
$
23,804
Average stockholders’ equity
$
371,843
$
53,297
$
150,672
$
(31,999
)
$
543,813
Adjusted return on average equity (7)
32.4
%
(1.6
)%
0.6
%
NM%
17.5
%
Six Months Ended June 30, 2024
Tiptree Capital
($ in thousands)
Insurance
Mortgage
Other
Corporate
Total
Income (loss) before taxes
$
88,061
$
1,281
$
3,205
$
(22,202
)
$
70,345
Less: Income tax (benefit) expense
(23,490
)
(276
)
(808
)
(7,917
)
(32,491
)
Less: Net realized and unrealized gains (losses) (1)
(5,364
)
(1,449
)
(2,038
)
—
(8,851
)
Plus: Intangibles amortization (2)
7,698
—
—
—
7,698
Plus: Stock-based compensation expense
1,804
—
—
5,428
7,232
Plus: Non-recurring expenses (3)
3,336
—
—
—
3,336
Plus: Non-cash fair value adjustments (4)
5,072
—
—
—
5,072
Plus: Impact of tax deconsolidation of Fortegra (5)
—
—
—
10,822
10,822
Less: Tax on adjustments (6)
(2,668
)
316
469
(892
)
(2,775
)
Adjusted net income (before NCI)
$
74,449
$
(128
)
$
828
$
(14,761
)
$
60,388
Less: Impact of non-controlling interests
(15,433
)
—
—
—
(15,433
)
Adjusted net income
$
59,016
$
(128
)
$
828
$
(14,761
)
$
44,955
Adjusted net income (before NCI)
$
74,449
$
(128
)
$
828
$
(14,761
)
$
60,388
Average stockholders’ equity
$
500,903
$
52,798
$
94,500
$
(50,884
)
$
597,317
Adjusted return on average equity (7)
29.7
%
(0.5
)%
1.8
%
NM%
20.2
%
Six Months Ended June 30, 2023
Tiptree Capital
($ in thousands)
Insurance
Mortgage
Other
Corporate
Total
Income (loss) before taxes
$
49,862
$
(1,253
)
$
2,897
$
(19,659
)
$
31,847
Less: Income tax (benefit) expense
(13,675
)
307
(760
)
(2,718
)
(16,846
)
Less: Net realized and unrealized gains (losses) (1)
8,986
(145
)
(740
)
—
8,101
Plus: Intangibles amortization (2)
7,789
—
—
—
7,789
Plus: Stock-based compensation expense
521
—
—
3,786
4,307
Plus: Non-recurring expenses (3)
2,363
—
—
—
2,363
Plus: Non-cash fair value adjustments (4)
(164
)
—
—
—
(164
)
Plus: Impact of tax deconsolidation of Fortegra (5)
—
—
—
5,814
5,814
Less: Tax on adjustments (6)
(2,624
)
29
235
237
(2,123
)
Adjusted net income (before NCI)
$
53,058
$
(1,062
)
$
1,632
$
(12,540
)
$
41,088
Less: Impact of non-controlling interests
(10,899
)
—
—
—
(10,899
)
Adjusted net income
$
42,159
$
(1,062
)
$
1,632
$
(12,540
)
$
30,189
Adjusted net income (before NCI)
$
53,058
$
(1,062
)
$
1,632
$
(12,540
)
$
41,088
Average stockholders’ equity
$
358,600
$
54,272
$
111,285
$
15,665
$
539,822
Adjusted return on average equity (7)
29.6
%
(3.9
)%
2.9
%
NM%
15.2
%
Notes(1)
Net realized and unrealized gains (losses) added back in Adjusted net income excludes net realized and unrealized gains (losses) from the mortgage segment and unrealized gains (losses) on mortgage servicing rights.
(2)
Specifically associated with acquisition purchase accounting. See Note (8) Goodwill and Intangible Assets, net, of the Company’s Form 10-Q for the period ended June 30, 2024.
(3)
For the three and six months ended June 30, 2024 and 2023, included in other expenses were expenses related to legal and other expenses associated with preparation of the registration statement for the withdrawn Fortegra initial public offering in 2024 and acquisitions of services businesses in 2023.
(4)
For the three and six months ended June 30, 2024 and 2023, non-cash fair-value adjustments represent a change in fair value of the Fortegra Additional Warrant liability which are added-back to adjusted net income.
(5)
For the three and six months ended June 30, 2024 and 2023, included in the adjustment is an add-back of $6.4 million and $10.8 million, respectively, and $3.5 million and $5.8 million, respectively, related to deferred tax expense from the WP Transaction.
(6)
Tax on adjustments represents the tax applied to the total non-GAAP adjustments and includes adjustments for non-recurring or discrete tax impacts.
(7)
Total Adjusted return on average equity after non-controlling interests was 22.7% and 17.6% for the three months ended June 30, 2024 and 2023, respectively, based on $24.4 million and $17.6 million of Adjusted net income over $430.6 million and $401.3 million of average Tiptree Inc. stockholders’ equity. Total Adjusted return on average equity after non-controlling interests was 21.1% and 15.1% for the six months ended June 30, 2024 and 2023, respectively, based on $45.0 million and $30.2 million of Adjusted net income over $426.7 million and $399.6 million of average Tiptree Inc. stockholders’ equity.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731473993/en/
Tiptree Inc. Investor Relations, 212-446-1400 ir@tiptreeinc.com
1 Year Tiptree Chart |
1 Month Tiptree Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions