Fortegra Financial Corporation (the "Company") (NYSE: FRF) an insurance services company providing distribution and administration services and insurance-related products, today reported results for the first quarter ended March 31, 2011.
"The year has gotten off to a strong start from a top-line perspective, driven by a combination of organic growth and strategic acquisitions. We did incur some one-time expenses in the quarter and higher costs related to operating as a public company. As a result, we instituted a company-wide expense management program to achieve better flow-through on each dollar of revenue and ensure that we are tightly controlling our costs. Overall, we are encouraged by the strengthening of our revenues, which is evidence of our efforts to continue to expand our product and service offerings as well as acquire businesses that complement and enhance our growth strategies," said Richard S. Kahlbaugh, Chairman and CEO of Fortegra.
Gross revenues increased 7.6% to $54.7 million for the first quarter of 2011 compared to $50.9 million for the first quarter of 2010. Net revenues (revenues net of losses, loss adjustment expenses, and commission expenses), increased 17.9% to $26.8 million for the first quarter of 2011 compared to $22.7 million for the first quarter of 2010. Net income was $3.6 million, or $0.17 per diluted share, for the quarter ended March 31, 2011 compared to $3.5 million, or $0.21, for the quarter ended March 31, 2010. Net income for the first quarter of 2011 included a $0.5 million loss on the early retirement of debt, as well as $0.2 million of transaction costs related to acquisitions completed in 2011. Net income for the first quarter of 2010 included $0.3 million of costs related to acquisitions completed in 2010. Excluding these items, net income for the quarter ended March 31, 2011 would have been $4.3 million, or $0.20 per diluted share, compared to $3.8 million, or $0.23 per diluted share, for the quarter ended March 31, 2010.