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Universal Insurance Holdings Inc. Message Board

  • fabulouspoodle fabulouspoodle Mar 8, 2013 6:14 PM Flag

    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.

    best.

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UVE
24.08+0.18(+0.75%)Aug 28 4:04 PMEDT