q4 2012 earnings out, are much better than the .11/eps
UVE earnings out, they made .11 vs a loss of .17 in the prior year. But earnings are much better than at first glance for three reasons:
1. Earnings includes a pre-tax $6.3 previously announced one time State Assessment charge. (the state is allowing them to increase future rates to make up this charge)
2. An abnormally high 53% income tax rate
3. A net unrealized loss on investments of $2.047 million - I consider this a legacy loss since since they have gotten rid of their wacky focused metal investments, and have transitioned to a conservative investment plan.
To get an adjusted earnings:
Income before taxes are = $9.364 million
add back the 1 time
state assessment charge + $6.300 million
so total adjusted earnings before tax = $15.664 million
tax that at a 38% rate $15.664 * .62 = $9.712
so total adjusted earnings after tax = $9.712 million
Outstanding shares = 41.091 million, so
Adjusted Earnings per share = .24/share
If you add back the unrealized loss on investments of two million dollars....that adds about .03/share to earnings.
So all in, I get a normalized .27/share earnings adjusted.
Now, imo, they had a strong quarter, and with the 14% rate inrease just given them, they should have a strong year ahead.
pete, .27/share is the adjusted earnings for the fourth quarter, not for the whole year. If you wanted to annualize q4 going forward, then that give you 4 * .27 = $1.08 on a full year basis, which gives you about a p/e of four. (I'm not saying you should do that, there are lots of other factors that would increase/decrease earnings over the year such as the coming rate increase on the plus side, and seasonality issues on the negative side).