Tiptree Inc. · NASDAQ:TIPT
Tiptree — Q2 2017 Earnings Presentation
20 slides from Tiptree's earnings presentation, Aug 7, 2017
Slide 1: Investor Presentation - Second Quarter 2017
August 2017 Financial information for six months ended June 30, 2017 NASDAQ: TIPT INVESTOR PRESENTATION - SECOND QUARTER - 2017 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 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 subsidiarie
Slide 3: Overview & Financial Results: Key Highlights
OVERVIEW & FINANCIAL RESULTS Key Highlights
Slide 4: 2Q'17 Performance Summary
3 $9.68 $0.32 $0.17 $(0.19) $(0.11) $9.87 Revenue $157.9 million 19.5% vs. prior year Adjusted EBITDA (1) $6.8 million vs. prior year of $17.4 million Book Value per share, as exchanged (1) $9.87 2.0% vs. 6/30/16 Net loss $5.3 million vs. prior year income of $7.0 million 2Q'17 PERFORMANCE SUMMARY þ
Slide 5: Financial Results
4 $16.0 $2.9 $1.6 $(2.2) $(3.5) $(4.4) $(15.1) $(4.7) $32.8 $5.9 $1.6 $(2.2) $(4.4) $(15.1) $18.6 Adjusted EBITDA (1) (in millions, except per share information) Financial metrics FINANCIAL RESULTS (1) See the appendix for a reconciliation of book value per share as exchanged and Adjusted EBITDA 2Q'
Slide 6: Six Months Ended June 30, 2017 Key Performance Highlights
Six Months Ended June 30, 2017 KEY PERFORMANCE HIGHLIGHTS
Slide 7: Specialty Insurance Key Financials
6 18.2 13.6 $13.3 13.1 $31.3 (0.3) Key financials (1) Pre-tax income and Adjusted EBITDA from Insurance operations down year-over-year driven by: • As adjusted underwriting margin of $53.0m, down $1.3m driven by mobile protection products • Increases in stock-based comp expenses of $1.7m, including
Slide 8: Specialty Insurance - Investment Portfolio
7 Investments (1) SPECIALTY INSURANCE - INVESTMENT PORTFOLIO ($ in millions) Interest expense Realized gains (losses) Net Investment Income Unrealized gains (losses) Year-to-date Investment portfolio income Overview We actively manage our investment portfolio to achieve a balance of two primary obje
Slide 9: Asset Management
8 As adjusted revenue components (1) Year-to-date financial highlights Year-over-year improvement in pre-tax income driven by: • $3.4m of unrealized and realized gains compared to $2.5 of unrealized losses in 2016 • Increases in incentive fees on older vintage CLOs Partially offset by: • Declining b
Slide 10: Senior Living
9 1H'16 1H'17 $3.7 $4.8 Key financials (1) Year-to-date highlights and outlook Improvement in pre-tax income of $1.2m over prior year driven by increases in rental revenue, which outpaced higher depreciation & other expenses from recent acquired properties • Quarterly pre-tax income and NOI margin %
Slide 11: Well Positioned for 2017 and Beyond
10 Book value per share as exchanged Adjusted EBITDA Trailing Twelve Months WELL POSITIONED FOR 2017 AND BEYOND Performance is expected to benefit from: • Continued growth in specialty insurance operations • Improvements in long-term, net investment income as our specialty insurance investment portf
Slide 12: Appendix
APPENDIX
Slide 13: EBITDA and Adjusted EBITDA Reconciliation
12 Management uses EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. The Company believes that use of these financial measures on a consolidated basis and for each segment provide supplemental information useful to investors as it is frequently used by the financial community to ana
Slide 14: EBITDA and Adjusted EBITDA Reconciliation (continued)
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: Non-GAAP Reconciliations - Book Value per Share, As Exchanged
14 NON-GAAP RECONCILIATIONS - 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 for Tiptree Class A common stock. Management believes the use of this fi
Slide 16: Non-GAAP Reconciliations - Specialty Insurance
15 NON-GAAP RECONCILIATIONS - SPECIALTY INSURANCE The following table provides a reconciliation between as adjusted underwriting margin and pre-tax income. We generally limit the underwriting risk we assume through the use of both reinsurance (e.g., quota share and excess of loss) and retrospective
Slide 17: Non-GAAP Reconciliations - Specialty Insurance Products
16 NON-GAAP RECONCILIATIONS - SPECIALTY INSURANCE The following table presents product specific revenue and expenses within the specialty insurance segment. We generally limit the underwriting risk we assume through the use of both reinsurance (e.g., quota share and excess of loss) and retrospective
Slide 18: Investment Portfolio Net Investments and Net Portfolio Income
17 The investment portfolio consists of assets contributed by Tiptree, cash generated from operations, and from insurance premiums written. The investment portfolio of our regulated insurance companies, captive reinsurance company and warranty business are subject to different regulatory considerati
Slide 19: Non-GAAP Reconciliations - Asset Management
18 NON-GAAP RECONCILIATIONS - ASSET MANAGEMENT The Company earns revenues from CLOs under management, whether consolidated or deconsolidated, which include fees earned for managing the CLOs, distributions received from the Company’s holdings of subordinated notes issued by the CLOs and realized and
Slide 20: Non-GAAP Reconciliations - Senior Living
19 NON-GAAP RECONCILIATIONS - SENIOR LIVING In addition to Adjusted EBITDA, we also evaluate performance of our senior living segment based on net operating income (“NOI”), which is a non-GAAP measure. NOI is a common non-GAAP measure in the real estate industry used to evaluate property level opera