Tiptree Inc. · NASDAQ:TIPT
Tiptree — Tiptree Financial — Q1 2016 Earnings Presentation
22 slides from Tiptree's earnings presentation, May 10, 2016
Slide 1: Investor Presentation - First Quarter 2016
May 2016 Financial information for the three months ended March 31, 2016 NASDAQ: TIPT INVESTOR PRESENTATION - FIRST QUARTER, 2016 Exhibit 99.1
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: Executing on Our 2016 Priorities
3 EXECUTING ON OUR 2016 PRIORITIES þ Fortegra Adjusted EBITDA up 46% and adjusted net revenues up 15% from $26.7 to $30.7mm þ Acquired 2 seniors housing properties ($55mm assets), achieved 58% NOI growth from prior year þ Further invested in residential NPLs, bringing total to $52mm þ Effective Apri
Slide 5: Strategic Priorities Going Forward
4 STRATEGIC PRIORITIES GOING FORWARD þ As of May 10th, A.M. Best upgraded Fortegra to A- (excellent) ¨ Opens up new channel opportunities and allows for further distribution of core product offering ¨ Expanded written premiums provide opportunity to increase investment portfolio ¨ Re-deploy $22 mill
Slide 6: Three Months Ended March 31, 2016 Financial Results
Three Months Ended March 31, 2016 FINANCIAL RESULTS
Slide 7: Consolidated Highlights
6 Consolidated highlights Class A shareholder net income of $5.6mm for 1Q16, an increase of $6.5mm over prior year primarily driven by: • Improved profitability at Fortegra • Year over year improvement in principal investment income • Increased rental income at Care from recent acquisitions and high
Slide 8: Segment Revenues and Adjusted EBITDA Performance
7 $12.0 $0.6 $(0.7) $0.6 $2.1 $1.9 $1.7 $0.3 $8.2 Revenues SEGMENT REVENUES AND ADJUSTED EBITDA PERFORMANCE ($ in millions) Real Estate: 250.0% Corporate, Principal Inv.: 105% Specialty Finance: (U%) Insurance & Insurance Services: 46.3% Asset Management: (10.5%) $4.8 $15.3 Cont. Ops.: 222% increase
Slide 9: Opportunities for Growth: Segment Performance
Opportunities for Growth SEGMENT PERFORMANCE
Slide 10: Insurance & Insurance Services: Highlights and Recent Developments
9 Highlights and recent developments 1Q16 1Q15 V% Revenue, as adjusted $91.7 $80.1 14.5% Net Revenue, as adjusted $30.7 $26.7 15.0% Adjusted EBITDA $12.0 $8.2 46.3% Adjusted EBITDA % 39.1% 30.7% 8.4% Net Written Premiums $47.4 $31.9 48.6% (1) Revenue as adjusted, Net Revenue as adjusted and Adjusted
Slide 11: Specialty Finance: Single-Family Mortgage Originations
10 Single-Family Mortgage Originations 1Q15 2Q15 3Q15 4Q15 1Q162Q16 E 3Q16 E 4Q16 E 165 269 271 211 164 266 271 239 229 394 239 508 164 435 163 374 167 331 178 444 142 413 128 367 Highlights and recent developments 1Q16 1Q15 V% Revenue $16.6 $6.3 163 % Adjusted EBITDA $(0.7) $0.6 (217)% Average earn
Slide 12: Real Estate Segment Highlights
11 1Q16 1Q15 $1.8 $1.1 Highlights and recent developments 1Q16 1Q15 V% Revenue $13.9 $9.4 47.9% Adjusted EBITDA (1) $2.1 $0.6 250.0% Segment assets $278.6 $230.5 20.9% Segment NOI (1) $4.9 $3.1 58.1% Key financials • $2.1mm Adjusted EBITDA driven by increased NOI margin at existing properties and ac
Slide 13: Asset Management Highlights
12 Highlights 1Q16 1Q15 V% Revenue $2.0 $1.0 4.2 % Income from consolidated CLOs(1) $1.0 $1.8 Adjusted EBITDA $1.7 $1.9 (10.5)% AUM (2) ($ in billions) $1.9 $2.0 (5.0)% Key financials • Adjusted EBITDA attributable to the asset management component of the CLOs were down slightly in 1Q16 • Primary dr
Slide 14: Corporate and Principal Investments
13 1Q16 1Q15 V% Principal investment revenue $10.0 $0.0 F% Income from consolidated CLOs(1) $0.1 $(2.1) F% Adjusted EBITDA $0.3 $(6.5) F% Key financials • Adjusted EBITDA increases driven by principal investments • $3.9mm unrealized gain on Star Asia investments in 1Q, which was subsequently sold in
Slide 15: Well Positioned for 2016 and Beyond
14 Adjusted EBITDA 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 • Better performance in specialty finance as a result of investment in sales in Q1 t
Slide 16: Appendix
APPENDIX
Slide 17: EBITDA and Adjusted EBITDA Non-GAAP Measures
16 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 18: EBITDA and Adjusted EBITDA Non-GAAP Measures (continued)
17 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 19: Non-GAAP Financial Information - Insurance & Insurance Services
18 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 20: Non-GAAP Financial Measures - Real Estate Segment NOI
19 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 21: Non-GAAP Financial Measures - CLOs Managed by the Company
20 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 months ended March 31, 2016 but not for the prior year period. The table below shows th
Slide 22: Tiptree Financial Inc. and the Company - Book Value Per Share
21 TIPTREE FINANCIAL INC. AND THE COMPANY - BOOK VALUE PER SHARE Tiptree Financial’s book value per share was $9.12 as of March 31, 2016 compared with $8.96 as of December 31, 2015. Total stockholders’ equity for the Company was $388.2 million as of March 31, 2016, which comprised total stockholders