Revenues for the BPO segment decreased 21.9% to $3.6 million for the first quarter of 2011 compared to $4.6 million for the first quarter of 2010, primarily due to lower volumes of new credit cards issued and regulatory changes that temporarily slowed production at one of the Company's customers. Income before taxes for the BPO segment decreased 57.5% to $0.6 million for the first quarter of 2011 compared to $1.5 million for the first quarter of 2010.
Revenues for the Brokerage segment increased 7.7% to $8.9 million for the first quarter of 2011 compared to $8.3 million in the first quarter of 2010. The increase was driven by profit commissions during the first quarter and the acquisition of eReinsure. Income before taxes for the Brokerage segment was $1.2 million for the first quarter of 2011 compared to $1.6 million for the first quarter of 2010.Balance Sheet Total invested assets and cash were $119.6 million as of March 31, 2011 compared to $148.0 million as of December 31, 2010. Cash and cash equivalents decreased $25.0 million to $18.4 million from $43.4 million as of December 31, 2010 to partially fund the two acquisitions completed in 2011. Unearned premiums were $200.6 million compared to $210.4 million as of December 31, 2010. Borrowings under our line of credit facility increased to $61.5 million compared to $36.7 million as of December 31, 2010 primarily due to funding of the acquisition of eReinsure and Auto Knight. Stockholder's equity increased to $126.9 million as of March 31, 2011 compared to $123.9 million as of December 31, 2010. Outlook Based on the Company's first quarter performance and management's operating assumptions for the remainder of the year, Fortegra is maintaining its previously provided outlook for the fiscal year ending December 31, 2011:
- Net revenues in the range of $106 to $111 million
- Diluted earnings per share in the range of $0.88 to $0.97 based on a weighted fully diluted share count of 21.6 million shares
- Adjusted EBITDA in the range of $47 to $50 million
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