Kingstone Companies, Inc. (NASDAQ: KINS) filed its Form 10-K for the year ended December 31, 2010. Barry Goldstein, Kingstone’s Chairman and CEO, said “2010 was our first full year which includes Kingstone Insurance Company (“KICO”). We exited the agency business in 2009 and acquired KICO on July 1, 2009. While our financial statements include KINS results for 2010 and 2009, we include in 2009 earnings only six months of results for the insurance company, and the results of the agency business are included in discontinued operations.” Selected data
Victor Brodsky, Chief Financial Officer, commented that “the reader should be cautious when making a comparison to the prior year. On an apples to apples approach, when comparing the two years, it may be best to compare the standalone insurance company results for the last six months of 2010 to the same period in 2009, the period when we began to include KICO in our results:
|Item||2010 (In thousands except per share data)||2009 (In thousands except per share data)|
|Income (Loss) from Operations||$1,849||$(219)|
|Gain on Acquisition of KICO||-||$5,178|
|Interest Income - CMIC Note Receivable||-||$61|
|Income Tax Expense (Benefit)||$767||$(67)|
|Income from Continuing Operations||$1,082||$5,087|
|Loss from Discontinued Operations||$(99)||$(266)|
|Net Income Per Share||$.29||$1.62|
|Total Stockholders’ Equity||$12,944||$10,383|
|Book Value Per Share at Year End||$3.37||$3.47|
- Total revenues for the last six months increased to $11.44 million in 2010 from $7.79 million in 2009 or an increase of 47%. The two main components of the KICO revenue stream, Earned Premiums and Ceding Commission, increased by 39% and 50%, respectively.
- Income before taxes for the last six months increased to $1.3 million in 2010, up from $810,000 in 2009, or an increase of 70%.
- Net income on this six month basis increased to $920,000 in 2010, up from $520,00 in 2009, or an increase of 79%.