Company Quick10K Filing
HCI Group
Price42.97 EPS1
Shares10 P/E38
MCap447 P/FCF12
Net Debt-41 EBIT21
TEV406 TEV/EBIT19
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-09-30 Filed 2020-11-06
10-Q 2020-06-30 Filed 2020-08-10
10-Q 2020-03-31 Filed 2020-05-08
10-K 2019-12-31 Filed 2020-03-06
10-Q 2019-09-30 Filed 2019-11-06
10-Q 2019-06-30 Filed 2019-08-07
10-Q 2019-03-31 Filed 2019-05-03
10-K 2018-12-31 Filed 2019-03-08
10-Q 2018-09-30 Filed 2018-11-07
10-Q 2018-06-30 Filed 2018-08-03
10-Q 2018-03-31 Filed 2018-05-02
10-K 2017-12-31 Filed 2018-03-07
10-Q 2017-09-30 Filed 2017-11-03
10-Q 2017-06-30 Filed 2017-08-03
10-Q 2017-03-31 Filed 2017-05-05
10-K 2016-12-31 Filed 2017-02-22
10-Q 2016-09-30 Filed 2016-11-04
10-Q 2016-06-30 Filed 2016-08-03
10-Q 2016-03-31 Filed 2016-05-04
10-K 2015-12-31 Filed 2016-03-04
10-Q 2015-09-30 Filed 2015-11-04
10-Q 2015-06-30 Filed 2015-08-05
10-Q 2015-03-31 Filed 2015-05-01
10-K 2014-12-31 Filed 2015-03-10
10-Q 2014-09-30 Filed 2014-11-07
10-Q 2014-06-30 Filed 2014-08-06
10-Q 2014-03-31 Filed 2014-05-01
10-K 2013-12-31 Filed 2014-03-12
10-Q 2013-09-30 Filed 2013-11-07
10-Q 2013-06-30 Filed 2013-08-07
10-Q 2013-03-31 Filed 2013-05-09
10-K 2012-12-31 Filed 2013-03-14
10-Q 2012-09-30 Filed 2012-11-13
10-Q 2012-06-30 Filed 2012-08-14
10-Q 2012-03-31 Filed 2012-05-14
10-K 2011-12-31 Filed 2012-03-30
10-Q 2011-09-30 Filed 2011-11-14
10-Q 2011-06-30 Filed 2011-08-12
10-Q 2011-03-31 Filed 2011-05-12
10-K 2010-12-31 Filed 2011-03-29
10-Q 2010-09-30 Filed 2010-11-12
10-Q 2010-06-30 Filed 2010-08-13
10-Q 2010-03-31 Filed 2010-05-14
10-K 2009-12-31 Filed 2010-03-30
8-K 2020-11-05
8-K 2020-09-30
8-K 2020-09-29
8-K 2020-08-06
8-K 2020-06-09
8-K 2020-06-04
8-K 2020-05-27
8-K 2020-05-15
8-K 2020-05-07
8-K 2020-03-05
8-K 2020-02-20
8-K 2020-02-12
8-K 2020-01-16
8-K 2019-11-05
8-K 2019-09-09
8-K 2019-08-06
8-K 2019-06-01
8-K 2019-05-30
8-K 2019-05-02
8-K 2019-04-09
8-K 2019-04-08
8-K 2019-03-15
8-K 2019-03-07
8-K 2019-02-09
8-K 2018-12-17
8-K 2018-12-05
8-K 2018-11-06
8-K 2018-11-06
8-K 2018-08-02
8-K 2018-06-01
8-K 2018-05-24
8-K 2018-05-01
8-K 2018-05-01
8-K 2018-04-17
8-K 2018-03-06
8-K 2018-02-08

HCI 10Q Quarterly Report

Part I - Financial Information
Item 1 - Financial Statements
Note 1 - Nature of Operations
Note 2 - Summary of Significant Accounting Policies
Note 3 - Recent Accounting Pronouncements
Note 4 - Cash, Cash Equivalents, and Restricted Cash
Note 5 - Investments
Note 6 - Comprehensive Income (Loss)
Note 7 - Fair Value Measurements
Note 8 - Deferred Policy Acquisition Costs
Note 9 - Property and Equipment, Net
Note 10 - Other Assets
Note 11 - Revolving Credit Facility
Note 12 - Long - Term Debt
Note 13 - Reinsurance
Note 14 - Losses and Loss Adjustment Expenses
Note 15 - Segment Information
Note 16 - - Leases
Note 17 - - Income Taxes
Note 18 - - Earnings per Share
Note 19 - - Stockholders' Equity
Note 20 - - Stock - Based Compensation
Note 21 - - Commitments and Contingencies
Note 22 - - Subsequent Events
Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3 - Quantitative and Qualitative Disclosures About Market Risk
Item 4 - Controls and Procedures
Part II - Other Information
Item 1 - Legal Proceedings
Item 1A - Risk Factors
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds
Item 3 - Defaults Upon Senior Securities
Item 4 - Mine Safety Disclosures
Item 5 - Other Information
Item 6 - Exhibits
EX-31.1 hci-ex311_28.htm
EX-31.2 hci-ex312_12.htm
EX-32.1 hci-ex321_30.htm
EX-32.2 hci-ex322_22.htm

HCI Group Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
1.10.90.70.40.20.02012201420172020
Assets, Equity
0.10.10.0-0.0-0.1-0.12012201420172020
Rev, G Profit, Net Income
0.20.10.10.0-0.0-0.12012201420172020
Ops, Inv, Fin

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

Form 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

 

OR

 

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission File Number

 

001-34126  

HCI Group, Inc.

(Exact name of Registrant as specified in its charter)

 

  Florida

 

20-5961396

(State of Incorporation)

 

(IRS Employer
Identification No.)

5300 West Cypress Street, Suite 100
Tampa, FL 33607
(Address, including zip code, of principal executive offices)

 

(813849-9500
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

 

Trading Symbol

 

Name of Each Exchange on Which Registered

Common Shares, no par value

 

HCI

 

New York Stock Exchange

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes      No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes      No 

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

Smaller reporting company 

 

 

 

Emerging growth company 

 

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes      No 

The aggregate number of shares of the Registrant’s Common Stock, no par value, outstanding on October 29, 2020 was 7,982,057.

 

 

 


 

HCI GROUP, INC. AND SUBSIDIARIES

 

TABLE OF CONTENTS

 

 

 

 

 

Page

 

 

 

 

 

 

 

PART I – FINANCIAL INFORMATION

 

 

 

 

 

 

 

Item 1

 

Financial Statements

 

 

 

 

Consolidated Balance Sheets:

 

 

 

 

September 30, 2020 (unaudited) and December 31, 2019

 

1-2

 

 

Consolidated Statements of Income:

 

 

 

 

Three and nine months ended September 30, 2020 and 2019 (unaudited)

 

3

 

 

Consolidated Statements of Comprehensive Income:

 

 

 

 

Three and nine months ended September 30, 2020 and 2019 (unaudited)

 

4

 

 

Consolidated Statements of Stockholders’ Equity:

 

 

 

 

Three and nine months ended September 30, 2020 and 2019 (unaudited)

 

5-8

 

 

Consolidated Statements of Cash Flows:

 

 

 

 

Nine months ended September 30, 2020 and 2019 (unaudited)

 

9-10

 

 

Notes to Consolidated Financial Statements (unaudited)

 

11-43

 

 

 

 

 

Item 2

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

44-57

 

 

 

 

 

Item 3

 

Quantitative and Qualitative Disclosures about Market Risk

 

58-59

 

 

 

 

 

Item 4

 

Controls and Procedures

 

60

 

 

 

 

 

 

 

 

 

 

 

 

PART II – OTHER INFORMATION

 

 

 

 

 

 

 

Item 1

 

Legal Proceedings

 

61

 

 

 

 

 

Item 1A

 

Risk Factors

 

61

 

 

 

 

 

Item 2

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

62-63

 

 

 

 

 

Item 3

 

Defaults upon Senior Securities

 

63

 

 

 

 

 

Item 4

 

Mine Safety Disclosures

 

63

 

 

 

 

 

Item 5

 

Other Information

 

63

 

 

 

 

 

Item 6

 

Exhibits

 

64-69

 

 

 

 

 

Signatures

 

70

 

 

 

Certifications

 

 

 

 

 

 

 

 


 

PART I – FINANCIAL INFORMATION

Item 1 – Financial Statements

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Dollar amounts in thousands)

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(Unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Fixed-maturity securities, available for sale, at fair value (amortized cost: $91,166 and

   $199,954, respectively and allowance for credit losses: $596 and $0, respectively)

 

$

92,743

 

 

$

202,839

 

Equity securities, at fair value (cost: $39,861 and $31,863, respectively)

 

 

42,702

 

 

 

35,285

 

Short-term investments, at fair value

 

 

 

 

 

491

 

Limited partnership investments

 

 

27,497

 

 

 

28,346

 

Investment in unconsolidated joint venture, at equity

 

 

716

 

 

 

762

 

Assets held for sale

 

 

4,519

 

 

 

 

Real estate investments

 

 

70,566

 

 

 

73,763

 

Total investments

 

 

238,743

 

 

 

341,486

 

Cash and cash equivalents

 

 

410,691

 

 

 

229,218

 

Restricted cash

 

 

2,400

 

 

 

700

 

Accrued interest and dividends receivable

 

 

916

 

 

 

1,616

 

Income taxes receivable

 

 

2,711

 

 

 

1,040

 

Premiums receivable

 

 

28,505

 

 

 

20,255

 

Prepaid reinsurance premiums

 

 

42,170

 

 

 

17,983

 

Reinsurance recoverable, net of allowance for credit losses:

 

 

 

 

 

 

 

 

Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively)

 

 

20,240

 

 

 

16,155

 

Unpaid losses and loss adjustment expenses (allowance: $90 and $0, respectively)

 

 

74,944

 

 

 

116,523

 

Deferred policy acquisition costs

 

 

29,701

 

 

 

21,663

 

Property and equipment, net

 

 

12,693

 

 

 

14,698

 

Intangible assets, net

 

 

3,723

 

 

 

4,192

 

Other assets

 

 

20,376

 

 

 

17,080

 

Total assets

 

$

887,813

 

 

$

802,609

 

 

(continued)

1


 

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets – continued

(Dollar amounts in thousands)

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(Unaudited)

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

$

219,345

 

 

$

214,697

 

Unearned premiums

 

 

238,936

 

 

 

181,163

 

Advance premiums

 

 

17,083

 

 

 

5,589

 

Assumed reinsurance balances payable

 

 

92

 

 

 

76

 

Accrued expenses

 

 

15,855

 

 

 

10,059

 

Deferred income taxes, net

 

 

8,866

 

 

 

4,008

 

Revolving credit facility

 

 

8,750

 

 

 

9,750

 

Long-term debt

 

 

155,675

 

 

 

163,695

 

Other liabilities

 

 

23,479

 

 

 

28,029

 

Total liabilities

 

 

688,081

 

 

 

617,066

 

Commitments and contingencies (Note 21)

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

7% Series A cumulative convertible preferred stock (no par value, none and

   1,500,000 shares authorized at September 30, 2020 and December 31, 2019,

   respectively, no shares issued or outstanding)

 

 

 

 

 

 

Series B junior participating preferred stock (no par value, none and

   400,000 shares authorized at September 30, 2020 and December 31, 2019,

   respectively, no shares issued or outstanding)

 

 

 

 

 

 

Preferred stock (no par value, 20,000,000 and 18,100,000 shares authorized

   at September 30, 2020 and December 31, 2019, respectively, no shares issued

   or outstanding)

 

 

 

 

 

 

Common stock (no par value, 40,000,000 shares authorized, 7,793,677 and

   7,764,564 shares issued and outstanding at September 30, 2020 and

   December 31, 2019, respectively)

 

 

 

 

 

 

Additional paid-in capital

 

 

 

 

 

 

Retained income

 

 

198,092

 

 

 

183,365

 

Accumulated other comprehensive income, net of taxes

 

 

1,640

 

 

 

2,178

 

Total stockholders’ equity

 

 

199,732

 

 

 

185,543

 

Total liabilities and stockholders’ equity

 

$

887,813

 

 

$

802,609

 

 

See accompanying Notes to Consolidated Financial Statements

2


 

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

(Dollar amounts in thousands, except per share amounts)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums earned

 

$

106,694

 

 

$

86,002

 

 

$

306,862

 

 

$

251,914

 

Premiums ceded

 

 

(44,231

)

 

 

(31,568

)

 

 

(109,304

)

 

 

(94,298

)

Net premiums earned

 

 

62,463

 

 

 

54,434

 

 

 

197,558

 

 

 

157,616

 

Net investment income

 

 

1,832

 

 

 

3,621

 

 

 

3,244

 

 

 

11,125

 

Net realized investment gains (losses)

 

 

177

 

 

 

(30

)

 

 

(632

)

 

 

(535

)

Net unrealized investment gains (losses)

 

 

1,340

 

 

 

642

 

 

 

(581

)

 

 

7,261

 

Credit losses on investments

 

 

(70

)

 

 

 

 

 

(596

)

 

 

 

Policy fee income

 

 

895

 

 

 

811

 

 

 

2,571

 

 

 

2,406

 

Gain on involuntary conversion

 

 

36,969

 

 

 

 

 

 

36,969

 

 

 

 

Other

 

 

421

 

 

 

501

 

 

 

1,591

 

 

 

1,370

 

Total revenue

 

 

104,027

 

 

 

59,979

 

 

 

240,124

 

 

 

179,243

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

51,743

 

 

 

27,327

 

 

 

119,664

 

 

 

78,616

 

Policy acquisition and other underwriting expenses

 

 

14,210

 

 

 

10,988

 

 

 

39,027

 

 

 

30,738

 

General and administrative personnel expenses

 

 

9,871

 

 

 

7,951

 

 

 

27,969

 

 

 

23,313

 

Interest expense

 

 

2,856

 

 

 

2,907

 

 

 

8,846

 

 

 

10,128

 

Loss on repurchases of convertible senior notes

 

 

 

 

 

 

 

 

150

 

 

 

 

Loss on extinguishment of debt

 

 

98

 

 

 

 

 

 

98

 

 

 

 

Other operating expenses

 

 

3,713

 

 

 

3,087

 

 

 

10,354

 

 

 

9,131

 

Total expenses

 

 

82,491

 

 

 

52,260

 

 

 

206,108

 

 

 

151,926

 

Income before income taxes

 

 

21,536

 

 

 

7,719

 

 

 

34,016

 

 

 

27,317

 

Income tax expense

 

 

6,146

 

 

 

1,866

 

 

 

9,143

 

 

 

7,173

 

Net income

 

$

15,390

 

 

$

5,853

 

 

$

24,873

 

 

$

20,144

 

Basic earnings per share

 

$

1.97

 

 

$

0.73

 

 

$

3.21

 

 

$

2.49

 

Diluted earnings per share

 

$

1.70

 

 

$

0.73

 

 

$

3.03

 

 

$

2.49

 

 

See accompanying Notes to Consolidated Financial Statements.

3


 

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(Unaudited)

(Amounts in thousands)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net income

 

$

15,390

 

 

$

5,853

 

 

$

24,873

 

 

$

20,144

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in unrealized gain (loss) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gains arising during the period

 

 

247

 

 

 

447

 

 

 

56

 

 

 

4,777

 

Credit losses charged to income

 

 

70

 

 

 

 

 

 

596

 

 

 

 

Call and repayment gains charged to investment income

 

 

(15

)

 

 

(2

)

 

 

(231

)

 

 

(1

)

Reclassification adjustment for net realized losses (gains)

 

 

21

 

 

 

(26

)

 

 

(1,133

)

 

 

(59

)

Net change in unrealized gains (losses)

 

 

323

 

 

 

419

 

 

 

(712

)

 

 

4,717

 

Deferred income taxes on above change

 

 

(79

)

 

 

(83

)

 

 

174

 

 

 

(1,173

)

Total other comprehensive income (loss), net of income taxes

 

 

244

 

 

 

336

 

 

 

(538

)

 

 

3,544

 

Comprehensive income

 

$

15,634

 

 

$

6,189

 

 

$

24,335

 

 

$

23,688

 

 

See accompanying Notes to Consolidated Financial Statements.

4


 

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statement of Stockholders’ Equity

For the Three Months Ended September 30, 2020

(Unaudited)

(Dollar amounts in thousands, except per share amount)

 

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Retained

 

 

Accumulated

Other

Comprehensive

Income,

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income