|Three Months Ended December 31,|
|Loss from continuing operations before income taxes||(2,064||)||(11,817||)|
|Benefit for federal, foreign, and state income taxes||336||423|
|Loss from continuing operations||(1,728||)||(11,394||)|
|Income from discontinued operations, net of tax||9,703|
|Gain on sale of discontinued operations, net of tax||612||83|
|Net income from discontinued operations, net of tax||612||9,786|
|Net income attributable to noncontrolling interests||(7,159||)|
|Net loss attributable to PICO Holdings, Inc.||$||(1,116||)||$||(8,767||)|
|Year Ended December 31,|
|Income (loss) from continuing operations before income taxes||10,341||(26,288||)|
|Benefit (provision) for federal, foreign, and state income taxes||(3,082||)||1,135|
|Income (loss) from continuing operations||7,259||(25,153||)|
|Income from discontinued operations, net of tax||3,053||13,899|
|Loss on sale of discontinued operations, net of tax||(8,698||)||(1,775||)|
|Net income (loss) from discontinued operations, net of tax||(5,645||)||12,124|
|Net income (loss)||1,614||(13,029||)|
|Net income attributable to noncontrolling interests||(1,150||)||(8,836||)|
|Net income (loss) attributable to PICO Holdings, Inc.||$||464||$||(21,865||)|
"We are pleased to be able to report progress on the execution of our business plan in 2017 and the results for the year clearly reflect the three major items that form the basis of our business plan:
- Monetization of assets: Most notably in 2017 we disposed of our 57% owned homebuilding subsidiary, UCP, Inc., and ultimately received cash proceeds of $114.5 million as a result of the sale transaction. Our wholly - owned subsidiary, Vidler Water Company, sold 102,500 Long Term Storage Credits in 2017 for $25.9 million and also in 2017 we wound down our oil and gas operations.
- Return of Capital to Shareholders: In the fourth quarter of 2017, we paid a special dividend to shareholders of $5 per share for a total distribution of $115.9 million. The payment is classified for federal income tax purposes as a tax - free return of capital to shareholders.
- Reduction in costs: We continued to reduce our general, administrative and other costs to $12.4 million in 2017 from $32.8 million in 2016 primarily by reducing employee headcount, executive compensation, stock-based compensation, directors' fees and certain legal and other professional fees. The 2016 costs include a charge of $10.4 million for severance and related payments to our former CEO. General, administrative and other costs were $20 million for 2015.
About PICO Holdings, Inc.PICO Holdings is a diversified holding company. The Company has announced that the Company's Board of Directors had engaged JMP Securities LLC as PICO's exclusive financial advisor and Cooley LLP as PICO's legal counsel to explore strategic alternatives to further enhance shareholder value. The intention of the engagements is to evaluate potential alternatives such as the sale of the Company, a merger, a business combination, or a sale, license or disposition of assets of the Company. As of December 31, 2017, our major investment was Vidler Water Company, Inc., a water resource and water storage business with assets and operations primarily in the Southwestern U.S. OTHER INFORMATION At December 31, 2017, PICO Holdings, Inc. had a market capitalization of $296.3 million, and 23,152,027 shares outstanding. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Statements in this press release that are not historical, including statements regarding our business objectives, the tax treatment of the special cash dividend, our earnings and profits for tax purposes in 2017, our ability to preserve and utilize NOLs to offset taxable income and reduce our federal income liability, and our ability to consummate a strategic transaction to further enhance shareholder value, are forward-looking statements based on current expectations and assumptions that are subject to risks and uncertainties. In addition, a number of other factors may cause results to differ materially from our expectations, such as: any slow down or downturn in the housing recovery or in the real estate markets in which Vidler operates; fluctuations in the prices of water and water rights; physical, governmental and legal restrictions on water and water rights; a downturn in some sectors of the stock market; general economic conditions; prolonged weakness in the overall U.S. and global economies; the performance of the businesses; the continued service and availability of key management personnel; and potential capital requirements and financing alternatives.
For further information regarding risks and uncertainties associated with our business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of our SEC filings, including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, copies of which may be obtained by contacting us at (858) 456-6022 or at http://investors.picoholdings.com.We undertake no obligation to (and we expressly disclaim any obligation to) update our forward-looking statements, whether as a result of new information, subsequent events, or otherwise, in order to reflect any event or circumstance which may arise after the date of this press release, except as may otherwise be required by law. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. This news release was distributed by GlobeNewswire, www.globenewswire.com. CONTACT: Max WebbChief Executive Officer(858) 652-4114