Tiptree Inc. · NASDAQ:TIPT
Tiptree — Tiptree Financial — FY2015 Earnings Presentation
23 slides from Tiptree's earnings presentation, Mar 15, 2016
Slide 1: Investor Presentation - Full Year 2015
March 2016 Financial information as of December 31, 2015 NASDAQ: TIPT INVESTOR PRESENTATION - FULL YEAR 2015 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. (“Tiptree Financial”) and Tiptree Operating Company, LLC (the “Company”) solely for informational purposes, and not for the purpose of updating any information or forecast with respect to Tiptree Fi
Slide 3: Overview: Key Highlights
OVERVIEW Key Highlights
Slide 4: 2015 Summary and Key Highlights
3 Revenue growth TIPTREE FINANCIAL INC. - 2015 SUMMARY • Disciplined capital allocation over 2015 ü Fortegra contributed $41.1mm Adjusted EBITDA in its first full year of operations under Tiptree ü PFG sold in June for $142.8mm cash plus future payment of $7.3mm, $15.6mm after-tax gain ü Reliance ac
Slide 5: Opportunities for Growth
4 TIPTREE FINANCIAL INC. - OPPORTUNITIES FOR GROWTH + US consumer showing signs of improvement + Fed indications that rates will rise slowly throughout 2016 + Regulatory restrictions on banks creating opportunities for alternative lending – Market volatility remains – US CLOs experiencing reduced pr
Slide 6: Year Ended December 31, 2015 Financial Results
Year Ended December 31, 2015 FINANCIAL RESULTS
Slide 7: Consolidated highlights
6 (1) The consolidated non-corporate and non-acquisition related interest expense subtracted from Adjusted EBITDA includes interest expense associated with asset-specific debt at subsidiaries in the insurance and insurance services, specialty finance, real estate and corporate and other segments. Fo
Slide 8: Segment Revenue Highlights
7 SEGMENT REVENUE HIGHLIGHTS 26.2 327.7 15.2 55.0 29.3 46.1 6.5 9.4 4.8 ($ in millions) 2015 revenue grew substantially driven by strategic acquisitions, organic growth and financially healthier consumers + Addition of Fortegra more than offsetting the sale of PFG + Care portfolio increased rental r
Slide 9: Segment Adjusted EBITDA
8 $7.8 $(1.5) $5.9 $6.6 $6.2 $5.4 $1.3 $58.9 $34.8 2015 dampened by $26.8mm realized and unrealized losses Tiptree Adjusted EBITDA SEGMENT ADJUSTED EBITDA ($ in millions) Real Estate - (36.5%) Corporate, Principal Investments & Other - (U%) Specialty Finance - F% Insurance & Insurance Services - F%
Slide 10: Segment Details: Opportunities for Growth
Segment Details OPPORTUNITIES FOR GROWTH
Slide 11: Insurance: Highlights and recent developments
10 Highlights and recent developments 2015 2014 V% Pro Forma Revenue (2) $350.6 $354.6 (1.1)% Pro Forma Net Revenue (2) (3) $113.4 $114.8 (1.2)% Adjusted EBITDA $41.1 $38.9 5.6 % Adjusted EBITDA % 36.2% 34.0% 2.2 % Leverage ratio 2.9x 3.7x (0.8)x (1) Excludes the value of the business acquired which
Slide 12: Specialty Finance: Highlights and recent developments
11 Housing Price Index 240 230 220 210 200 190 Jun- 13 Dec -13 Jun- 14 Dec -14 Jun- 15 Dec -15 Highlights and recent developments 2015 2014 V% Revenue $55.0 $15.2 262% Adjusted EBITDA $5.9 $(1.5) F% Average earning assets $56.0 $29.3 91% Origination volume $1,243.7 $538.7 131% Mortgage margin (bps)
Slide 13: Real Estate: Highlights and recent developments
12 2015 2014 $6.5 $3.9 Highlights and recent developments 2015 2014 V% Revenue $46.1 $29.3 57.3 % Adjusted EBITDA (1) $6.6 $10.4 (36.5)% Segment assets $235.6 $179.8 31.0 % Segment NOI (2) $16.1 $9.7 66.0 % Key financials • $6.6mm adjusted EBITDA driven by increased rental revenue offset by the loss
Slide 14: Asset Management: Highlights and recent developments
13 Highlights and recent developments 2015 2014 V% Revenue $6.5 $0.3 (10.8)% Income from consolidated CLOs(1) $4.1 $11.8 Adjusted EBITDA $5.4 $6.2 (12.9)% AUM (2) ($ in billions) $2.2 $2.1 4.8 % Key financials • Adjusted EBITDA attributable to the asset management component of the CLOs were down sli
Slide 15: Corporate and Other: Key financials
14 2015 2014 V% Principal investment revenue $4.8 $9.4 (49)% Income from consolidated CLOs(1) $(11.0) $7.8 U% Adjusted EBITDA $(33.1) $1.3 U% Key financials • Adjusted EBITDA impacted by CLO equity performance ◦ Accrued cash flow generated from management fees and distributions on CLO sub notes tota
Slide 16: Well Positioned for 2016 and Beyond
15 WELL POSITIONED FOR 2016 AND BEYOND • Adjusted EBITDA is expected to benefit from: ü Continued revenue growth of Fortegra, combined with disciplined expense management, driving positive improvements ü Growth in specialty finance volumes and improved margins from improving product mix ü Growing re
Slide 17: Appendix
APPENDIX
Slide 18: EBITDA and Adjusted EBITDA reconciliation
17 In addition to the results of operations presented in accordance with GAAP, management uses EBITDA and Adjusted EBITDA on a consolidated basis and for each segment, which are non-GAAP financial measures. We believe that consolidated EBITDA and Adjusted EBITDA provide supplemental information usef
Slide 19: Notes to Adjusted EBITDA
18 Notes (1) The consolidated non-corporate and non-acquisition related interest expense is subtracted from EBITDA to arrive at Adjusted EBITDA. This includes interest expense associated with asset-specific debt at subsidiaries in the insurance and insurance services, specialty finance, real estate
Slide 20: EBITDA and Adjusted EBITDA by segment
19 In addition to the results of operations presented in accordance with GAAP, management uses EBITDA and Adjusted EBITDA on a consolidated basis and for each segment, which are non-GAAP financial measures. We believe that consolidated EBITDA and Adjusted EBITDA provide supplemental information usef
Slide 21: Fortegra pro forma financial information
20 Fortegra presents pro forma Total revenues and pro forma Net revenues which are Non-GAAP financial measures to provide investors with additional information to analyze its performance from period to period. Management also uses these measures to assess performance and to allocate resources in man
Slide 22: Book Value Per Share
21 TIPTREE FINANCIAL INC. AND THE COMPANY - BOOK VALUE PER SHARE Tiptree Financial’s book value per share was $8.96 as of December 31, 2015 compared with $8.94 as of December 31, 2014. Total stockholders’ equity for the Company was $369.7 million as of December 31, 2015, which comprised total stockh
Slide 23: Non-GAAP Financial Measures - Real Estate Segment NOI
22 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