NEW YORK, May 11, 2009 (GLOBE NEWSWIRE) -- American Independence Corp. (Nasdaq:AMIC) today reported 2009 first-quarter results. This press release contains both GAAP and non-GAAP financial information for which reconciliations can be found at the end of this release.
Financial Results
The Company's operating income(1) for the three months ended March 31, 2009 was $1.9 million ($.22 per share, diluted), as compared to $1.2 million ($.14 per share, diluted) for the three months ended March 31, 2008.
Revenues decreased to $26.7 million for the three months ended March 31, 2009, compared to revenues of $28.4 million for the three months ended March 31, 2008. Net income increased to $1.4 million ($.16 per share, diluted), net of a provision for income taxes of $0.7 million, for the three months ended March 31, 2009, compared to $0.8 million ($.10 per share, diluted), net of a provision for income taxes of $0.5 million, for the three months ended March 31, 2008. As of March 31, 2009, AMIC had approximately $274 million of federal net operating loss carryforwards. To the extent that AMIC utilizes any such carryforwards, it will not pay any income taxes, except for federal alternative minimum taxes and state income taxes.
Chief Executive Officer's Comments
Roy Thung, Chief Executive Officer, commented, "We are pleased that our operating income from continuing operations increased 54% and net income increased 73% for the quarter ended March 31, 2009, as compared to the quarter ended March 31, 2008. We are also pleased with the sequential increase in non-GAAP operating income to $1.9 million for the first quarter of 2009 from $.6 million in the fourth quarter of 2008. The improvement in both operating income and net income is largely due to significantly improved underwriting results on both our medical stop-loss and fully insured health lines of business, offset by reduced medical stop-loss premiums. We anticipate that our improved operating results will continue in 2009 as a result of stricter underwriting guidelines. We are also gratified by the increase in book value to $9.88 per share at March 31, 2009, from $9.75 per share at December 31, 2008. The adjusted book value per share(2) was $10.39 at March 31, 2009."
Non-GAAP Financial Measures
The Company provides non-GAAP financial measures to complement its consolidated financial statements presented in accordance with GAAP: (i) Operating income is net income excluding non-cash charges related to the amortization of intangible assets recorded in purchase accounting, net realized investment gains (losses) and the federal income tax charge related to deferred taxes, (ii) Operating income per share is operating income (loss) on a per share basis, and (iii) Adjusted book value per share represents AMIC's book value per share excluding the per share value of net unrealized investment gains and losses (per SFAS 115), after taxes. These non-GAAP financial measures are intended to supplement the user's overall understanding of the Company's current financial performance and its prospects for the future. Specifically, the Company believes the non-GAAP results provide useful information to both management and investors by identifying certain expenses that, when excluded from the GAAP results, may provide additional understanding of the Company's core operating results or business performance. However, these non-GAAP financial measures are not intended to supersede or replace the Company's GAAP results.
