Tiptree Inc. · NASDAQ:TIPT
Tiptree — Tiptree Financial — Q2 2016 Earnings Presentation
20 slides from Tiptree's earnings presentation, Aug 5, 2016
Slide 1: Investor Presentation - Second Quarter 2016
August 2016 Financial information for the three and six months ended June 30, 2016 NASDAQ: TIPT INVESTOR PRESENTATION - SECOND 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 $133.8 million 32.4% vs. prior year Adjusted EBITDA from continuing operations (1) $17.4 million 142% vs. prior year Book Value per Class A share $9.83 9.7% vs. 12/31/15 Net Income from continuing operations $7.0 million 681% vs. prior year EXECUTING ON OUR 2016 PRIORITIES þ Fortegra net w
Slide 5: Consolidated highlights
4 (1) As of 6/30/2016, 5,596,000 Class A common shares were held at subsidiaries. (2) For a reconciliation of Non-GAAP metrics to the nearest GAAP equivalent, see the Appendix. Consolidated highlights Income from continuing operations of $7.0m for 2Q16, an increase of $8.2m over prior year primarily
Slide 6: 1st Half 2016 Performance
5 17.5 23.4 1.2 1.8 2.7 4.3 2.1 2.7 (11.4) 0.4$33.2 1ST HALF 2016 PERFORMANCE ($ in millions) Real Estate: 59.3% Corporate, Principal Inv.: F% Specialty Finance: 50.0% Insurance & Insurance Services: 33.7% Asset Management: 28.6% $12.0 $32.8 Cont. Ops.: 142% increase 1H161H15 Disc. Ops. (PFG): (U)%
Slide 7: Segment Performance
Three and Six Months Ended June 30, 2016 SEGMENT PERFORMANCE
Slide 8: Insurance & Insurance Services
7 2Q16 revenue of $87.8m, up $9.3m or 11.8% year-over-year while contributing $8.1m of pre-tax income, up 28.6% $11.4m Adjusted EBITDA for 2Q16, up 23.9% year over year with margin expansion from 33.1% to 39.7% • Net revenues, as adjusted, up $0.9m year over year ü Investment income of $2.2m, up $1.
Slide 9: Specialty Finance
8 Key financials 2Q16 pre-tax income of $2.3m, an increase of 283% compared to prior year driven by increased mortgage and lending volume primarily from the Reliance acquisition • Mortgage revenue: originations up 67%, with margin increase of 229 bps, driven by the addition of Reliance's higher FHA/
Slide 10: Real Estate
9 1H16 1H15 $3.7 $2.8 Highlights and recent developmentsKey financials • 2Q16 revenues of $14.6m, up $6.4m or 17.7% year- over-year with a pre-tax loss of $1.2m primarily driven by depreciation on recently acquired properties • Adjusted EBITDA of $2.3m, up 15.0% driven by increased NOI at existing p
Slide 11: Asset Management
10 Highlights 2Q16 V% 1H16 V% Revenue $1.7 (11.1)% $3.7 (4.6)% Income from consolidated CLOs(2) $0.7 $1.7 Pre-tax income $1.1 450.0 % $2.7 28.6 % Adjusted EBITDA $1.1 450.0 % $2.7 28.6 % Fee-earning AUM(3) ($ in billions) $2.1 5.0 % $2.1 5.0 % Key financials Revenues and income from consolidated CLO
Slide 12: Corporate and Principal Investments
11 2Q16 2Q15 1H16 1H15 Principal investment revenue $7.5 $0.4 $17.5 $0.3 Corporate expenses (2) $8.5 $5.7 $17.0 $11.4 Income from consolidated CLOs $4.2 $(0.9) $4.3 $(3.1) Pre-tax income $0.7 $(6.7) $(0.1) $(14.7) Adjusted EBITDA $0.1 $(5.0) $0.4 $(11.4) Key financials Principal investment revenue i
Slide 13: Well Positioned for 2016 and Beyond
12 Revenue Adjusted EBITDA from continuing operations WELL POSITIONED FOR 2016 AND BEYOND 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 portfoli
Slide 14: Appendix
APPENDIX
Slide 15: EBITDA and Adjusted EBITDA reconciliation
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: EBITDA and Adjusted EBITDA reconciliation (continued)
15 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 17: Non-GAAP Financial Information - Insurance & Insurance Services
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 Information - Insurance & Insurance Services (continued)
17 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 19: Non-GAAP Financial Measures - Real Estate Segment NOI
18 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 20: Non-GAAP Financial Measures - CLOs Managed by the Company
19 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 six months ended June 30, 2016 but not for the prior year periods. The table below