Tiptree Inc. · NASDAQ:TIPT
Tiptree — Tiptree Financial — Q3 2016 Earnings Presentation
20 slides from Tiptree's earnings presentation, Nov 8, 2016
Slide 1: Investor Presentation - Third Quarter 2016
November 2016 Financial information for the three and nine months ended September 30, 2016 NASDAQ: TIPT INVESTOR PRESENTATION - THIRD QUARTER - 2016 Exhibit 99.2
Slide 2: Limitations on the Use of Information
1 LIMITATIONS ON THE USE OF INFORMATION This presentation has been prepared by Tiptree Financial Inc. and its consolidated subsidiaries (“Tiptree", "the Company" or "we”) solely for informational purposes, and not for the purpose of updating any information or forecast with respect to Tiptree, its s
Slide 3: Overview & Financial Results: Key Highlights
OVERVIEW & FINANCIAL RESULTS Key Highlights
Slide 4: Key Highlights and 2016 Priorities
3 Revenue $134.1 million 11.0% vs. prior year Adjusted EBITDA from continuing operations (1) $20.1 million 3.1x vs. prior year Book Value per share, as exchanged (1) $9.93 11.6% vs. 12/31/15 Net Income from continuing operations $7.8 million vs. prior year loss of $6.4 million EXECUTING ON OUR 2016
Slide 5: Driving Repeatable Growth
4 1Q16 2Q16 3Q16 Market Enterprise Value (2) $412.4 $368.5 $375.1 Annualized Adjusted EBITDA $61.3 $69.7 $80.5 Implied market EV multiple 6.7x 5.3x 4.7x Book Enterprise Value (3) $558.6 $525.2 $520.2 Implied book EV multiple 9.1x 7.5x 6.5x Book value per share as exchanged Adjusted EBITDA from conti
Slide 6: 3Q16 Consolidated Highlights
5 3Q16 consolidated highlights Income from continuing operations of $7.8m for 3Q16, an increase of $14.2m over prior year primarily driven by: • Improved origination volumes and margins in specialty finance • Increased rental income at Care from recent acquisitions and improving margins on existing
Slide 7: 2016 Segment Performance
6 30.5 35.0 2.9 6.3 3.9 7.2 3.0 5.0 (23.5) (0.7) $33.2 2016 SEGMENT PERFORMANCE ($ in millions) Real Estate: 84.6% Corporate & principal Investments: F% Specialty Finance: 117.2% Insurance & Insurance Services: 14.8% Asset Management: 66.7% $16.8 $52.9 Continuing Operations: 216% increase Disc. Ops.
Slide 8: Key Performance Highlights
Three and Nine Months Ended September 30, 2016 KEY PERFORMANCE HIGHLIGHTS
Slide 9: Insurance & Insurance Services 3Q16 Highlights
8 3Q16 highlights Pre-tax income and Adjusted EBITDA down year-over- year driven by: • Reduction in Warranty net revenues as competitive pressures remain for the mobile protection products Partially offset by: ü Investment income of $3.5m, up $2.3m from prior year ü Specialty product net revenues of
Slide 10: Real Estate 3Q16 Highlights and Outlook
9 YTD'16 YTD'15 $5.5 $4.7 3Q16 highlights and outlookKey financials (1) Revenues of $15.7m, up $4.1m or 35.3% year-over-year with a pre-tax loss of $0.5m primarily driven by depreciation on recently acquired properties Adjusted EBITDA of $2.9m, up 123.1% driven by increased NOI at existing propertie
Slide 11: Asset Management 3Q16 Highlights
10 3Q16 highlights Significant year-over-year improvement in earnings related to asset management fees and CLO investments • Fee revenue up versus prior year primarily driven by incentive fees leading to pre-tax earnings of $2.3m for the quarter and $5.0m year-to-date • CLO sub-note investments impr
Slide 12: Well Positioned for 2016 and Beyond
11 Revenue Adjusted EBITDA WELL POSITIONED FOR 2016 AND BEYOND Looking ahead ... Adjusted EBITDA is expected to benefit from: • Continued revenue growth of Fortegra combined with disciplined expense management driving positive improvements • Growing rental income in our real estate portfolio through
Slide 13: Appendix
APPENDIX
Slide 14: EBITDA and Adjusted EBITDA Reconciliation
13 Management uses EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. The Company believes that consolidated EBITDA and Adjusted EBITDA on a consolidated basis and for each segment provide supplemental information useful to investors as it is frequently used by the financial communit
Slide 15: EBITDA and Adjusted EBITDA Reconciliation (continued)
14 Management uses EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. The Company believes that consolidated EBITDA and Adjusted EBITDA on a consolidated basis and for each segment provide supplemental information useful to investors as it is frequently used by the financial communit
Slide 16: Non-GAAP Financial Information - Insurance & Insurance Services (Three Months)
15 Fortegra presents As Adjusted Net revenues which is a Non-GAAP financial measure to provide investors with additional information to analyze its performance from period to period. Management also uses this measures to assess performance and to allocate resources in managing its businesses. Howeve
Slide 17: Non-GAAP Financial Information - Insurance & Insurance Services (Nine Months)
16 Fortegra presents As Adjusted Net revenues which is a Non-GAAP financial measure to provide investors with additional information to analyze its performance from period to period. Management also uses this measures to assess performance and to allocate resources in managing its businesses. Howeve
Slide 18: Non-GAAP Financial Measures - Real Estate Segment NOI
17 NON-GAAP FINANCIAL MEASURES - REAL ESTATE SEGMENT NOI We evaluate performance of our real estate segment based on segment net operating income (“NOI”). We consider NOI as an important supplemental measure used to evaluate the operating performance of our real estate segment because it allows inve
Slide 19: Non-GAAP Financial Measures - CLOs Managed by the Company
18 NON-GAAP FINANCIAL MEASURES - CLOs MANAGED BY THE COMPANY The Company deconsolidated the results of Telos 1, Telos 2, Telos 3 and Telos 4 for the period that we did not own the subordinated notes for the three and nine months ended September 30, 2016 but not for the prior year periods. The table
Slide 20: Book Value Per Share, As Exchanged
19 BOOK VALUE PER SHARE, AS EXCHANGED Management uses Book value per share, as exchanged, which is a non-GAAP financial measure. As exchanged assumes full exchange of the limited partners units of TFP (other than Tiptree itself) for Tiptree Class A common stock. The Company believes that use of this