Exhibit 99.1
HILLTOP HOLDINGS INC. ANNOUNCES
SECOND QUARTER 2007 RESULTS
DENVER, CO — (BUSINESS WIRE) — August 8, 2007 — Hilltop Holdings Inc. (NYSE:HTH), formerly known as Affordable Residential Communities Inc., today announced results for the second quarter ended June 30, 2007.
Second Quarter Operating Results
Consolidated gross revenue for the second quarter of 2007, which includes the Company’s insurance operations and its manufactured home communities business, as the assets of the Company were not sold until after the close of the second quarter 2007, was $94.8 million as compared to $83.1 million in the first quarter of 2007 and to $61.5 million in the second quarter of 2006. Net loss attributable to common stockholders for the second quarter of 2007 was ($9.9) million, or ($0.18) per share, compared to ($9.0) million, or ($0.17) per share, in the first quarter of 2007 and ($2.7) million, or ($0.06) per share, in the second quarter of 2006. Results for the second quarter of 2006 include a gain on the sale of discontinued operations of $9.4 million, or $0.22 per share.
Net loss from continuing operations before income taxes and minority interest in the second quarter of 2007 was ($7.4) million, as compared to ($5.8) million in the first quarter of 2007, reflecting slightly lower net segment income from real estate and insurance operations. As compared to the loss from continuing operations before income taxes and minority interest of ($13.1) million recorded in the second quarter of 2006, the loss from continuing operations in the second quarter of 2007 reflects income from the Company’s first quarter acquisition of NLASCO, as well as $1.5 million of increased net segment income from the real estate segment, reduced losses in the Company’s retail home sales, partially offset by increases in amortization expense, property management and general and administrative expense.
Net income from the Company’s property and casualty insurance business was $0.7 million for the second quarter of 2007, which includes $0.1 million in after-tax gains on the sale of investment securities. The Company’s wholly-owned property and casualty insurance companies specialize in providing fire and homeowners insurance for low-value dwellings. Gross premiums written totaled $41.2 million in the second quarter of 2007.
NLASCO’s loss and loss adjustment expense ratio (LAE ratio) for the three-month period-ended June 30, 2007 was 70.4%, as compared to 53.1% for the two-month period-ended March 31, 2007. The increase is primarily due to an increase in the frequency of rain claims in the three-month period-ended June 30, 2007. The underwriting expense ratio was 25.3% for the second quarter of 2007, an improvement over the underwriting expense ratio of 33.7% for the two-month period-ended March 31, 2007. As a result, the combined ratio for the three-month period-ended June 30, 2007 was 95.7%, as compared to 86.8% for the two-month period-ended March 31, 2007.
Mr. Larry Willard, President and Chief Executive Officer commented, “Our property casualty insurance results were negatively affected by the frequency of storms in Texas and the corresponding reserving for losses associated with the same. As we have been settling the claims arising from these storms, we are experiencing reserves in excess of settlements, due to our conservative reserve policy.”
Balance Sheet and Regulatory Capital
The market value of NLASCO’s cash and investment portfolio $176.7 million at June 30, 2007, compared with $169.8 million at March 31, 2007. Bonds, cash and short-term investments constitute $166.5 million, or 94.2%, of NLASCO’s cash and investments at June 30, 2007. The Company’s reserve for unpaid losses, including reinsurance recoverables, was $21.8 million at June 30, 2007.
Regulations of the Texas Department of Insurance require insurance companies to maintain minimum levels of statutory surplus to ensure their ability to meet their obligations to policyholders. At June 30, 2007, the Company’s insurance subsidiaries had statutory surplus in excess of the minimum required.
The National Association of Insurance Commissioners (NAIC) has adopted the risk-based capital (RBC) formula for insurance companies that establishes minimum capital requirements relating to insurance risk, asset credit risk, interest rate risk and business risk. The formula is used by the NAIC and certain state insurance regulators as an early warning tool to identify companies that require additional scrutiny or regulatory action. At June 30, 2007, the Company’s insurance subsidiaries’ RBC ratio exceeded the level at which regulatory action would be required.
Subsequent Event
On July 31, 2007, the Company completed the sale of its manufactured home communities business, including the operating assets used in the Company’s manufactured home communities business and its manufactured home retail sales and financing businesses. As the required shareholder approval was not obtained until after the close of the quarter, the former manufactured home communities business is listed as a continuing operation. Under the terms of the agreement and after giving effect to estimated expenses and taxes, the amount realized by the Company was approximately $550 million, net of retained debt and preferred stock. The gross proceeds to the Company were $1.794 billion consisting of cash and assumed debt, subject to adjustment. The Company retained approximately $125.0 million par value of Series A Preferred Stock and $90.9 million of Senior Exchangeable Notes Due 2025, and will use a portion of the proceeds from the sale for liquidation of the operating partnership (OP) units of Affordable Residential Communities LP.
Mr Willard commented, “The transformation of the Company continues to progress. We expect the use of proceeds from the sale of our manufactured home communities business to enable us to make opportunistic acquisitions, which will create long-term value for shareholders. We look forward to updating investors about these plans, as they are carried out.”
As previously announced the Company will not be holding an earnings conference call this quarter.
About Hilltop Holdings Inc.
Hilltop Holdings Inc. (“HTH”), through its NLASCO subsidiary, is a property and casualty insurance company focused on providing fire and homeowners insurance for low value dwellings and manufactured homes in the south, southeastern and southwestern United States through National Lloyds, rated “A” by AM Best and American Summit, rated “A-” by AM Best. The Company’s products are distributed through approximately 6,600 independent agents in 23 states.
HTH owns NLASCO, a company that specializes in providing fire and homeowners insurance to low value dwellings and manufactured homes primarily in Texas and other areas of the south, southeastern and southwestern United States. NLASCO operates through its wholly-owned subsidiaries, National Lloyds Insurance Company (“NLIC”) and American Summit Insurance Company (“ASIC”).
CONTACTS
Hilltop Holdings Inc.
Larry Willard, President and Chief Executive Officer
(866) 847-8931
or
ICR, LLC
Brad Cohen, (203) 682-8211
Brad.cohen@icrinc.com
Glossary of Insurance Terms
Underwriting Expense Ratio - This represents the percentage of a company’s net premiums written that went toward underwriting expenses, such as commissions to agents and brokers, state and municipal taxes, salaries, employee benefits and other operating costs. The ratio is computed by dividing underwriting expenses less fee and other income plus depreciation and amortization by net premiums earned. A company with an underwriting expense ratio of 31.3% is spending more than 31 cents of every dollar of net premiums written to pay underwriting costs. It should be noted that different lines of business have intrinsically differing expense ratios.
Loss Adjustment Expense Ratio - - The ratio of incurred losses and loss-adjustment expenses to net premiums earned. This ratio measures the company’s underlying profitability, or loss experience, on its total book of business.
Combined Ratio - - The sum of the LAE and expense ratios. This ratio measures the company’s overall underwriting profitability, and a combined ratio of less than 100 indicates an underwriting profit.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this news release are subject to certain risks and uncertainties including, but not limited to, statements about the Company’s plans, objectives, expectations and intentions and other statements that are not historical facts. Actual results may differ materially from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: general risks
affecting the real estate industry; the Company’s ability to maintain or increase rental rates and occupancy with respect to properties currently owned; the Company’s assumptions on rental home and home sales and financing activity; completion of pending acquisitions and sales, if any, and terms of and timing with respect thereto; the Company’s growth and expansion into new markets or successful integration of acquisitions; and the effect of interest rates. Additional factors that could cause the Company’s results to differ materially from those described in the forward-looking statements can be found in the Company’s 2006 Annual Report on Form 10-K (included under the heading “Forward-Looking Statements”), and in the Company’s Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s internet site (http://www.sec.gov). The forward-looking statements contained in this news release speak only as of the date of the release, and the Company assumes no obligation to update the forward-looking statements or update the reasons why actual results could differ from those contained in the forward-looking statements.
[DATA SHEETS TO FOLLOW]
Hilltop Holdings Inc.
Unaudited Consolidated Statements of Operations
(Amounts in thousands, except per share data)
| | Three Months Ended | | Six Months Ended | |
| | Mar. 31, | | June 30, | | June 30, | |
| | 2007 | | 2007 | | 2006 | | 2007 | | 2006 | |
Revenue | | | | | | | | | | | |
Rental income | | $ | 53,642 | | $ | 54,274 | | $ | 51,959 | | $ | 107,916 | | $ | 102,865 | |
Net premiums earned | | 16,719 | | 26,478 | | — | | 43,197 | | — | |
Sales of manufactured homes | | 2,535 | | 2,952 | | 2,993 | | 5,486 | | 5,665 | |
Utility and other income | | 7,120 | | 6,843 | | 6,270 | | 13,963 | | 12,747 | |
Fee and other insurance income | | 1,317 | | 1,784 | | — | | 3,101 | | — | |
Net investment income | | 1,331 | | 1,940 | | — | | 3,270 | | — | |
Net realized gains on sales of investments | | 66 | | 117 | | — | | 184 | | — | |
Net consumer finance interest income | | 374 | | 388 | | 245 | | 762 | | 424 | |
Total revenue | | 83,104 | | 94,776 | | 61,467 | | 177,879 | | 121,701 | |
Expenses | | | | | | | | | | | |
Property operations | | 17,589 | | 17,873 | | 16,256 | | 35,461 | | 32,678 | |
Real estate taxes | | 4,837 | | 4,843 | | 5,024 | | 9,680 | | 10,160 | |
Losses and loss adjustment expenses. | | 8,877 | | 18,638 | | — | | 27,515 | | — | |
Cost of manufactured homes sold. | | 2,090 | | 2,438 | | 2,565 | | 4,527 | | 4,874 | |
Retail home sales, finance and other. | | 1,864 | | 2,094 | | 2,830 | | 3,958 | | 4,728 | |
Property management | | 1,847 | | 1,971 | | 1,586 | | 3,818 | | 3,178 | |
General and administrative. | | 5,385 | | 5,597 | | 4,991 | | 10,982 | | 9,412 | |
Underwriting expenses. | | 6,603 | | 7,933 | | — | | 14,536 | | — | |
Depreciation and amortization | | 21,865 | | 21,745 | | 21,775 | | 43,611 | | 43,386 | |
Loss on sale of airplane | | — | | — | | — | | — | | 541 | |
Interest expense. | | 18,488 | | 19,663 | | 20,006 | | 38,151 | | 39,587 | |
Total expenses. | | 89,445 | | 102,795 | | 75,033 | | 192,239 | | 148,544 | |
Interest income | | (494 | ) | (643 | ) | (448 | ) | (1,137 | ) | (871 | ) |
Loss from continuing operations before income tax benefit and allocation to minority interest | | (5,847 | ) | (7,376 | ) | (13,118 | ) | (13,223 | ) | (25,972 | ) |
Income taxes on continuing operations. | | (687 | ) | (256 | ) | 3,372 | | (943 | ) | 4,571 | |
Loss from continuing operations before allocation to minority interest | | (6,534 | ) | (7,632 | ) | (9,746 | ) | (14,166 | ) | (21,401 | ) |
Minority interest. | | 271 | | 256 | | 166 | | 527 | | 402 | |
Loss from continuing operations | | (6,263 | ) | (7,376 | ) | (9,580 | ) | (13,639 | ) | (20,999 | ) |
(Loss) income from discontinued operations | | (128 | ) | 22 | | 689 | | (106 | ) | 2,381 | |
Gain on sale of discontinued operations. | | — | | — | | 15,613 | | — | | 25,909 | |
Income tax expense from discontinued operations | | — | | — | | (6,521 | ) | — | | (11,316 | ) |
Minority interest in discontinued operations | | 4 | | (1 | ) | (343 | ) | 3 | | (596 | ) |
Net loss | | (6,387 | ) | (7,355 | ) | (142 | ) | (13,742 | ) | (4,621 | ) |
Preferred stock dividend | | (2,578 | ) | (2,578 | ) | (2,578 | ) | (5,156 | ) | (5,156 | ) |
Net loss attributable to common stockholders | | $ | (8,965 | ) | $ | (9,933 | ) | $ | (2,720 | ) | $ | (18,898 | ) | $ | (9,777 | ) |
| | | | | | | | | | | |
Loss per share from continuing operations | | | | | | | | | | | |
Basic loss per share | | $ | (0.17 | ) | $ | (0.18 | ) | $ | (0.28 | ) | $ | (0.35 | ) | $ | (0.60 | ) |
Diluted loss per share | | $ | (0.17 | ) | $ | (0.18 | ) | $ | (0.28 | ) | $ | (0.35 | ) | $ | (0.60 | ) |
| | | | | | | | | | | |
Income per share from discontinued operations | | | | | | | | | | | |
Basic income per share | | $ | — | | $ | — | | $ | 0.22 | | $ | — | | $ | 0.38 | |
Diluted income per share | | $ | — | | $ | — | | $ | 0.22 | | $ | — | | $ | 0.38 | |
| | | | | | | | | | | |
Loss per share attributable to common stockholders | | | | | | | | | | | |
Basic loss per share. | | $ | (0.17 | ) | $ | (0.18 | ) | $ | (0.06 | ) | $ | (0.35 | ) | $ | (0.22 | ) |
Diluted loss per share. | | $ | (0.17 | ) | $ | (0.18 | ) | $ | (0.06 | ) | $ | (0.35 | ) | $ | (0.22 | ) |
| | | | | | | | | | | |
Weighted average share information | | | | | | | | | | | |
Common shares outstanding | | 52,328 | | 56,394 | | 43,696 | | 54,372 | | 43,632 | |
Hilltop Holdings Inc.
Unaudited Real Estate Net Segment Income
(Amounts in thousands, except homesite data)
| | Three Months Ended | | Six Months Ended | |
| | Mar. 31, | | June 30, | | June 30, | |
| | 2007 | | 2007 | | 2006 | | 2007 | | 2006 | |
| | | | | | | | | | | |
Average total homesites | | 57,264 | | 57,269 | | 57,242 | | 57,267 | | 57,227 | |
Average total rental homes | | 9,717 | | 9,759 | | 9,324 | | 9,737 | | 9,295 | |
| | | | | | | | | | | |
Average occupied homesites - homeowners | | 38,380 | | 38,171 | | 39,666 | | 38,270 | | 39,912 | |
Average occupied homesites - rental homes | | 8,817 | | 9,107 | | 8,128 | | 8,949 | | 7,854 | |
Average total occupied homesites | | 47,197 | | 47,278 | | 47,794 | | 47,219 | | 47,766 | |
Average occupancy - rental homes | | 90.7 | % | 93.3 | % | 87.2 | % | 91.9 | % | 84.5 | % |
Average occupancy - total | | 82.4 | % | 82.6 | % | 83.5 | % | 82.5 | % | 83.5 | % |
| | | | | | | | | | | |
Real estate revenue | | | | | | | | | | | |
Homeowner rental income | | $ | 37,395 | | $ | 37,322 | | $ | 36,995 | | $ | 74,717 | | $ | 73,860 | |
Home renter rental income | | 16,069 | | 16,732 | | 14,764 | | 32,801 | | 28,588 | |
Other | | 178 | | 220 | | 200 | | 398 | | 417 | |
Rental income | | 53,642 | | 54,274 | | 51,959 | | 107,916 | | 102,865 | |
Utility and other income | | 6,972 | | 6,782 | | 6,180 | | 13,754 | | 12,471 | |
Total real estate revenue | | 60,614 | | 61,056 | | 58,139 | | 121,670 | | 115,336 | |
Real estate expenses | | | | | | | | | | | |
Property operations expenses | | 17,589 | | 17,873 | | 16,256 | | 35,461 | | 32,678 | |
Real estate taxes. | | 4,837 | | 4,843 | | 5,024 | | 9,680 | | 10,160 | |
Total real estate expenses | | 22,426 | | 22,716 | | 21,280 | | 45,141 | | 42,838 | |
| | | | | | | | | | | |
Real estate net segment income | | $ | 38,188 | | $ | 38,340 | | $ | 36,859 | | $ | 76,529 | | $ | 72,498 | |
| | | | | | | | | | | |
Average monthly rental income per total occupied homesite (1) | | $ | 379 | | $ | 383 | | $ | 362 | | $ | 381 | | $ | 359 | |
Average monthly homeowner rental income per homeowner occupied homesite (2) | | $ | 325 | | $ | 326 | | $ | 311 | | $ | 325 | | $ | 308 | |
Average monthly home renter income per occupied rental home (3) | | $ | 608 | | $ | 612 | | $ | 605 | | $ | 611 | | $ | 607 | |
| | June 30, | |
| | 2007 | | 2006 | |
Total communities | | 275 | | 275 | |
Total homesites | | 57,272 | | 57,240 | |
Occupied homesites | | 47,220 | | 47,785 | |
Total rental homes owned | | 9,788 | | 9,409 | |
Occupied rental homes | | 9,159 | | 8,333 | |
(1) Average monthly rental income per occupied homesite is defined as rental income divided by average total occupied homesites divided by the number of months in the period.
(2) Average monthly homeowner rental income per homeowner occupied homesite is defined as homeowner rental income divided by average homeowner occupied homesites divided by the number of months in the period.
(3) Average monthly home renter income per occupied rental home is defined as home renter rental income divided by average occupied rental homes divided by the number of months in the period.
Hilltop Holdings Inc.
Unaudited Reconciliation of Net Segment Income to Net Loss
(Amounts in thousands)
| | Three | | | | | | | | | | | | | |
| | Months | | Three Months Ended June 30, | | Six Months | |
| | Ended | | 2007 | | | | Ended June 30, | |
| | Mar. 31, | | Mfg. | | | | | | | | | | | |
| | 2007 | | Housing | | Insurance | | Total | | 2006 | | 2007 | | 2006 | |
Total revenue | | | | | | | | | | | | | | | |
Real estate | | $ | 60,614 | | $ | 61,056 | | $ | — | | $ | 61,056 | | $ | 58,139 | | $ | 121,670 | | $ | 115,336 | |
Property and casualty insurance | | 19,433 | | — | | 30,319 | | 30,319 | | — | | 49,752 | | — | |
Retail home sales. | | 2,535 | | 2,952 | | — | | 2,952 | | 2,993 | | 5,487 | | 5,681 | |
Finance and other | | 522 | | 449 | | — | | 449 | | 335 | | 970 | | 684 | |
| | 83,104 | | 64,457 | | 30,319 | | 94,776 | | 61,467 | | 177,879 | | 121,701 | |
Operating expenses, cost of manufactured homes sold and real estate taxes | | | | | | | | | | | | | | | |
Real estate. | | 22,426 | | 22,716 | | — | | 22,716 | | 21,280 | | 45,141 | | 42,838 | |
Property and casualty insurance | | 15,480 | | — | | 26,571 | | 26,571 | | — | | 42,051 | | — | |
Retail home sales | | 3,511 | | 4,175 | | — | | 4,175 | | 4,743 | | 7,686 | | 8,240 | |
Finance and other | | 443 | | 357 | | — | | 357 | | 652 | | 799 | | 1,362 | |
| | 41,860 | | 27,248 | | 26,571 | | 53,819 | | 26,675 | | 95,677 | | 52,440 | |
Net segment income | | | | | | | | | | | | | | | |
Real estate | | 38,188 | | 38,340 | | — | | 38,340 | | 36,859 | | 76,529 | | 72,498 | |
Property and casualty insurance | | 3,953 | | — | | 3,748 | | 3,748 | | — | | 7,701 | | — | |
Retail home sales | | (976 | ) | (1,223 | ) | — | | (1,223 | ) | (1,750 | ) | (2,199 | ) | (2,559 | ) |
Finance and other | | 79 | | 92 | | — | | 92 | | (317 | ) | 171 | | (678 | ) |
| | 41,244 | | 37,209 | | 3,748 | | 40,957 | | 34,792 | | 82,202 | | 69,261 | |
| | | | | | | | | | | | | | | |
Property management expense | | 1,847 | | 1,971 | | — | | 1,971 | | 1,586 | | 3,818 | | 3,178 | |
General and administrative expense. | | 5,385 | | 5,597 | | — | | 5,597 | | 4,991 | | 10,982 | | 9,412 | |
Depreciation and amortization expense | | 21,865 | | 21,202 | | 543 | | 21,745 | | 21,775 | | 43,611 | | 43,386 | |
Loss on sale of airplane | | — | | — | | — | | — | | — | | — | | 541 | |
Interest expense | | 18,488 | | 18,415 | | 1,248 | | 19,663 | | 20,006 | | 38,151 | | 39,587 | |
Interest income | | (494 | ) | (643 | ) | — | | (643 | ) | (448 | ) | (1,137 | ) | (871 | ) |
Loss from continuing operations before income taxes and minority interest | | (5,847 | ) | (9,333 | ) | 1,957 | | (7,376 | ) | (13,118 | ) | (13,223 | ) | (25,972 | ) |
Income taxes on continuing operations | | (687 | ) | 1,013 | | (1,269 | ) | (256 | ) | 3,372 | | (943 | ) | 4,571 | |
(Loss) income from continuing operations before allocation to minority interest | | (6,534 | ) | (8,320 | ) | 688 | | (7,632 | ) | (9,746 | ) | (14,166 | ) | (21,401 | ) |
Minority interest | | 271 | | 289 | | (33 | ) | 256 | | 166 | | 527 | | 402 | |
Loss from continuing operations | | (6,263 | ) | (8,031 | ) | 655 | | (7,376 | ) | (9,580 | ) | (13,639 | ) | (20,999 | ) |
(Loss) income from discontinued operations | | (128 | ) | 22 | | — | | 22 | | 689 | | (106 | ) | 2,381 | |
Gain on sale of discontinued operations | | — | | — | | — | | — | | 15,613 | | — | | 25,909 | |
Income taxes on discontinued operations | | — | | — | | — | | — | | (6,521 | ) | — | | (11,316 | ) |
Minority interest in discontinued operations | | 4 | | (1 | ) | — | | (1 | ) | (343 | ) | 3 | | (596 | ) |
Net loss | | (6,387 | ) | (8,010 | ) | 655 | | (7,355 | ) | (142 | ) | (13,742 | ) | (4,621 | ) |
Preferred stock dividend | | (2,578 | ) | (2,578 | ) | — | | (2,578 | ) | (2,578 | ) | (5,156 | ) | (5,156 | ) |
Net (loss) income attributable to common stockholders | | $ | (8,965 | ) | $ | (10,588 | ) | $ | 655 | | $ | (9,933 | ) | $ | (2,720 | ) | $ | (18,898 | ) | $ | (9,777 | ) |
Hilltop Holdings Inc.
Unaudited Homeowner and Home Renter Activity
| | Three Months Ended | | Six Months | |
| | March 31, | | June 30, | | Ended June 30, | |
| | 2007 | | 2007 | | 2006 | | 2007 | | 2006 | |
| | | | | | | | | | | |
Homeowner activity: | | | | | | | | | | | |
Homeowner move ins | | 203 | | 186 | | 277 | | 389 | | 530 | |
Homeowner move outs | | (337 | ) | (405 | ) | (540 | ) | (742 | ) | (1,088 | ) |
Home sales | | 148 | | 169 | | 130 | | 317 | | 262 | |
Repossession move outs. | | (184 | ) | (213 | ) | (358 | ) | (397 | ) | (661 | ) |
Net homeowner activity | | (170 | ) | (263 | ) | (491 | ) | (433 | ) | (957 | ) |
| | | | | | | | | | | |
Home renter activity: | | | | | | | | | | | |
Home renter move ins | | 708 | | 660 | | 945 | | 1,368 | | 1,872 | |
Home renter lease with option to purchase move ins | | 541 | | 457 | | 403 | | 998 | | 792 | |
Home renter move outs | | (867 | ) | (1,004 | ) | (944 | ) | (1,871 | ) | (1,799 | ) |
Net home renter activity | | 382 | | 113 | | 404 | | 495 | | 865 | |
| | | | | | | | | | | |
Net activity | | 212 | | (150 | ) | (87 | ) | 62 | | (92 | ) |
| | | | | | | | | | | |
The following reconciles the above activity to the period end occupied homesites | | | | | | | | | | | |
| | | | | | | | | | | |
Net homeowner activity | | (170 | ) | (263 | ) | (491 | ) | (433 | ) | (957 | ) |
Occupied homeowner sites, beginning of period | | 38,494 | | 38,324 | | 39,943 | | 38,494 | | 40,409 | |
Occupied homeowner sites, end of period | | 38,324 | | 38,061 | | 39,452 | | 38,061 | | 39,452 | |
| | | | | | | | | | | |
Net home renter activity | | 382 | | 113 | | 404 | | 495 | | 865 | |
Occupied home renter sites, beginning of period. | | 8,664 | | 9,046 | | 7,929 | | 8,664 | | 7,468 | |
Occupied home renter sites, end of period | | 9,046 | | 9,159 | | 8,333 | | 9,159 | | 8,333 | |
| | | | | | | | | | | |
Total occupied homesites, end of period | | 47,370 | | 47,220 | | 47,785 | | 47,220 | | 47,785 | |
Total occupancy percentage | | 82.7 | % | 82.4 | % | 83.5 | % | 82.4 | % | 83.5 | % |
Hilltop Holdings Inc.
Unaudited Consolidated Balance Sheets
(Amounts in thousands)
| | June 30, | | December 31, | |
| | 2007 | �� | 2006 | |
Assets | | | | | |
Rental and other property, net | | $ | 1,359,657 | | $ | 1,390,564 | |
Assets held for sale | | 15,435 | | 15,326 | |
Investments | | | | | |
Trading securities, at fair value (cost of $592) | | 657 | | — | |
Securities available for sale, at fair value (amortized cost of $121,055) | | 117,937 | | — | |
Securities held to maturity, at amortized cost (fair value of $6,467) | | 6,469 | | — | |
Cash and cash equivalents | | 74,855 | | 29,281 | |
Restricted cash | | 6,982 | | 6,784 | |
Tenant and other receivables, net | | 3,481 | | 4,651 | |
Reinsurance receivables, net of uncollectible amounts | | 3,984 | | — | |
Premiums receivable | | 23,158 | | — | |
Notes receivable, net | | 28,714 | | 29,904 | |
Loan origination costs, net | | 15,157 | | 16,736 | |
Loan reserves | | 36,225 | | 33,305 | |
Goodwill | | 23,708 | | — | |
Indefinite lived intangible assets | | 3,000 | | — | |
Finite lived intangible assets | | 18,025 | | 6,457 | |
Deferred income taxes | | 26,531 | | — | |
Deferred acquisition costs | | 7,288 | | — | |
Prepaid expenses and other assets | | 14,369 | | 9,693 | |
Total assets | | $ | 1,785,632 | | $ | 1,542,701 | |
Hilltop Holdings Inc.
Unaudited Consolidated Balance Sheets (continued)
(Amounts in thousands)
| | June 30, | | December 31, | |
| | 2007 | | 2006 | |
Liabilities and Stockholders' Equity | | | | | |
Notes payable | | $ | 1,100,441 | | $ | 1,046,500 | |
Reserve for losses and loss adjustment expenses | | 21,754 | | — | |
Unearned premiums | | 64,178 | | — | |
Liabilities related to assets held for sale | | 134 | | 247 | |
Accounts payable and accrued expenses | | 38,543 | | 28,946 | |
Dividends payable | | 1,719 | | 1,903 | |
Tenant deposits and other liabilities | | 18,928 | | 17,727 | |
Total liabilities | | 1,245,697 | | 1,095,323 | |
| | | | | |
Minority interest | | 10,712 | | 28,142 | |
| | | | | |
Commitments and contingencies | | | | | |
| | | | | |
Stockholders' equity | | | | | |
Preferred stock, no par value, 5,750,000 shares authorized, 5,000,000 shares issued and outstanding at June 30, 2007 and December 31, 2006, respectively; liquidation preference of $25 per share plus accrued but unpaid dividends | | 119,108 | | 119,108 | |
Common stock, $.01 par value, 100,000,000 shares authorized, 56,400,427 and 41,346,287 shares issued and outstanding at June 30, 2007 and December 31, 2006, respectively | | 564 | | 413 | |
Additional paid-in capital | | 923,826 | | 794,653 | |
Accumulated other comprehensive income | | (439 | ) | — | |
Retained deficit | | (513,836 | ) | (494,938 | ) |
Total stockholders' equity | | 529,223 | | 419,236 | |
Total liabilities and stockholders' equity | | $ | 1,785,632 | | $ | 1,542,701 | |
