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Hilltop Holdings Inc. Reports Operating Results (10-Q)

August 07, 2009 | About:

Hilltop Holdings Inc. (HTH) filed Quarterly Report for the period ended 2009-06-30.

Affordable Residential Communities is a fully integrated self-administered self-managed equity real estate investment trust focused primarily on the acquisition renovation repositioning and operation of all-age manufactured home communities with headquarters in Denver Colo. ARC also rents and sells manufactured homes finances sales of manufactured homes and acts as an agent in the sale of homeowners\' insurance and other related insurance products all exclusively to residents of its communities. Hilltop Holdings Inc. has a market cap of $702.9 million; its shares were traded at around $12.45 with and P/S ratio of 6.8.

Highlight of Business Operations:

For the six months ended June 30, 2009, net loss attributable to common stockholders was $12.1 million, or $0.21 per share, as compared to a net loss of $28.5 million, or $0.50 per share, for the same period in 2008. Net loss from operations accounted for $7.0 million of the net loss attributable to common stockholders for the six months ended June 30, 2009, compared to $23.3 million for the six months ended June 30, 2008.

The $16.3 million decrease in net loss from operations for the six months ended June 30, 2009, as compared to the same period in 2008, is primarily due to the loss on investments decreasing by $40.9 million ($26.6 million net of tax). This decrease relates to a $41.9 million loss ($27.2 million net

of tax) recorded during the six months ended June 30, 2008 for equity securities held at HTH for potential acquisition. The decrease in loss on investments for the six months ended June 30, 2009 was partially offset by a decrease in investment income of $11.7 million ($7.6 million net of tax) generated on the cash at HTH due to lower interest rates in 2009, a decrease in earned premium of $3.2 million and an increase in loss and loss adjustment expense of $2.7 million.

Revenue. Revenue for the three months ended June 30, 2009 was $31.3 million, as compared to $17.7 million for the same period in 2008. The significant difference was due to a net realized loss of $21.5 million in the quarter ending June 30, 2008. Net premiums earned were $28.7 million for the three months ended June 30, 2009, as compared to $30.8 million for the same period in 2008. Net investment income was $1.7 million for the three months ended June 30, 2009, as compared to $6.8 million for the same period in 2008, primarily due to higher yields on cash balances in 2008. We had net realized losses on investments of $0.9 million in the three months ended June 30, 2009, compared to a net realized loss of $21.5 million for the same period in 2008. Other income was $1.8 million for the three months ended June 30, 2009, as compared to $1.5 million for the same period in 2008.

Read the The complete ReportHTH is in the portfolios of Michael Price of MFP Investors LLC.

Rating: 2.7/5 (3 votes)

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