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.
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.
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:
Conference Call Information
- 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
Fortegra's executive management will host a conference call to discuss its fourth quarter and full year 2010 results on Friday, May 13, 2011 at 8:30 a.m. Eastern Time. Analysts, media and individual investors are invited to participate in the conference call by calling (877) 407-9039, or for international callers, (201) 689-8470. A simultaneous Webcast of the conference call audio will be available online at
. Participants are encouraged to call or sign in at least 15 minutes prior to the scheduled conference call time to ensure participation and, if required, to download and install the necessary software. A replay of the call will be available shortly after the call until May 20, 2011, by dialing (877) 870-5176, or for international callers, (858) 384-5517. The passcode for the replay is 370354. A replay of the call will also be available online at
Fortegra Financial Corporation is an insurance services company that provides distribution and administration services and insurance-related products to insurance companies, insurance brokers and agents and other financial services companies in the United States. It sells services and products directly to businesses rather than directly to consumers. Fortegra's brands include Life of the South, Consecta, Bliss & Glennon and eReinsure.