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 second quarter and six months ended June 30, 2011:
- Net revenues increased 12.6% to $27.3 million for the second quarter of 2011
- Diluted earnings per share (EPS) on a GAAP basis were $0.07 for the second quarter of 2011 and $0.12 on a non-GAAP basis
- Adjusted EBITDA for the second quarter of 2011 was $7.8 million
“We were pleased with our revenue growth in the quarter, as we posted double-digit growth in revenue led by our eReinsure and auto club acquisitions,” said Richard S. Kahlbaugh, Chairman and Chief Executive Officer of Fortegra. “At the same time, our expenses this quarter were higher than our initial expectations, and included significant operating costs during the quarter that we plan to reduce or eliminate in the second half of the year, as well as other non-recurring costs. Expense management is a top priority at the Company and we are taking steps to improve our cost structure, which we expect to yield results in the coming quarters.”
Second Quarter Results
Gross revenues increased 9.0% to $53.9 million for the second quarter of 2011 compared to $49.4 million for the second quarter of 2010. Net revenues (revenues net of losses, loss adjustment, and commission expenses) increased 12.6% to $27.3 million for the second quarter of 2011, compared to $24.2 million for the prior-year period. Net income for the second quarter 2011 was $1.6 million, or $0.07 per diluted share, compared to $3.8 million, or $0.22 per diluted share, for the quarter ended June 30, 2010. Net income for the second quarter of 2011 included $0.6 million in acquisition-related costs, as well as $0.4 million in other one-time charges. Net income for the second quarter of 2010 included $0.3 million in one-time re-audit professional fees and $0.1 million of costs related to acquisitions. Excluding these items, net income for the second quarter of 2011 was $2.6 million, or $0.12 per diluted share, compared to $4.1 million, or $0.24 per diluted share, for the prior-year period.