PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report
August 5, 2003
(Date of earliest event reported)
VESTA INSURANCE GROUP, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 63-1097283 |
| (State or other jurisdiction of | (I.R.S. Employer |
| incorporation or organization) | Identification No.) |
| 3760 River Run Drive | 35243 |
| Birmingham, Alabama | (Zip Code) |
| (Address of principal executive offices) |
(205) 970-7000
(Registrant's telephone number, including area code)
Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit No. Description
99.1 Press Release dated August 5, 2003.
Item 9 and Item 12. Results of Operations and Financial Condition
On August 5, 2003, the Registrant reported its earnings for the quarter ended June 30, 2003. Attached to this Current Report on Form 8-K as Exhibit 99.1 is a copy of the Company's press release dated August 5, 2003, which is incorporated herein by reference.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
Dated as of August 5, 2003.
VESTA INSURANCE GROUP, INC.
By: /s/ John W. McCullough
Its: Vice President --
Associate General Counsel and Secretay
EXHIBIT 99.1
FOR IMMEDIATE RELEASE Contact: Charles R. Lambert
Vice President – Investor Relations
(205) 970-7030
CLambert@vesta.com
VESTA REPORTS SECOND QUARTER RESULTS
Non-Standard Auto Reports 96.7% Combined Ratio;
Incurs $20.0 Million in Catastrophe Losses in Standard Operations
BIRMINGHAM, Ala. - August 5, 2003 - Vesta Insurance Group, Inc. (NYSE: VTA) today reported a net operating loss from continuing operations of $5.4 million, or $(0.16) per share in the second quarter compared to a net operating loss from continuing operations of $.6 million, or $(0.02) per share for the corresponding period in 2002. The net loss from continuing operations was $4.0 million, or $(0.12) per share for the quarter ending June 30, 2003 compared to a net loss from continuing operations of $1.6 million, or $(0.05) per share in the second quarter of 2002. Net operating loss is a non-GAAP measure which excludes certain items, such as realized gains and losses and gains on debt extinguishments. (A reconciliation of net operating loss to net loss from continuing operations is included herein.) Net earned premium for the quarter was $123.5 million compared to $122.2 million in the second quarter of 2002.
For the six months ended June 30, 2003, the net operating loss from continuing operations was $3.2 million, or $(0.09) per share compared to a loss of $.3 million, or $(0.01) per share in 2002. For the first six months, the Company reported net income from continuing operations of $.4 million, or $0.01 per share compared to income of $.016 million or $0.00 per share in 2002. (A reconciliation of the net operating loss to net loss from continuing operations is included herein.)
"Our core businesses are producing vastly improved fundamental results as evidenced by our underwriting margins excluding catastrophes," said Norman W. Gayle, III, President and CEO. "The risk of catastrophes is inherent in the insurance business and our standard property-casualty segment incurred $20.0 million of catastrophe losses in the quarter, including $17.3 million from the severe Texas hailstorms in early April. The hailstorm had a 21-point impact on our standard property-casualty combined ratio in the second quarter."
Vesta also announced that it has entered into a definitive agreement to sell its health insurance subsidiary, States General Life Insurance Company, for statutory surplus. The Company is continuing to explore other capital alternatives, including a possible divestiture of its life insurance business and portions of its property-casualty operations, but will not comment on the terms of any transaction until a definitive agreement is executed. Furthermore, Vesta is considering separating its non-standard and standard businesses, which could facilitate additional capital transactions.
The Company's non-standard auto underwriting business generated a GAAP combined ratio of 96.7% in the second quarter and 96.0% for the first six months of 2003 compared to a 96.4% and a 97.1% combined ratios for the respective corresponding periods in 2002. The non-standard agency operations produced a 10.2% pre-tax margin in the quarter on commission and fee revenue of $33.9 million, before eliminations.
"Our non-standard agency operations has consistently provided healthy profitability based on commission and fee income," said Gayle. "Our non-standard underwriting margins also continue to be attractive. When you consider these two segments together, we believe we have a non-standard auto business with exciting earnings power."
The Company's life insurance operations posted net income from continuing operations of $1.2 million in the second quarter compared to $2.1 million in the corresponding period in 2002 as lower investment yield and reduced realized gains impacted results.
Vesta's standard property-casualty segment, which includes the residential property and standard auto businesses, posted a net loss from continuing operations of $7.6 million in the second quarter of 2003. Below are the standard property-casualty segment GAAP operational ratios for the three and six months ended June 30, 2003 and 2002.
| 3 Months Ended June 30, | 6 Months Ended June 30, | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2003 |
2002 |
2003 |
2002 | ||||||||||||||
| Residential property combined ratio | 118 | .8% | 106 | .8% | 113 | .4% | 103 | .0% | |||||||||
| Standard auto combined ratio | 97 | .6% | 103 | .1% | 96 | .6% | 111 | .0% | |||||||||
| Standard property-casualty combined ratio | 114 | .1% | 106 | .0% | 109 | .6% | 105 | .0% | |||||||||
| Total catastrophe losses incurred (in millions) | $ | 20 | .0 | $ | 6 | .2 | $ | 23 | .3 | $ | 7 | .9 | |||||
| Impact of catastrophes on standard | |||||||||||||||||
| property-casualty combined ratio | 24 | .1% | 7 | .7% | 14 | .3% | 5 | .3% | |||||||||
"Our standard auto results have produced four consecutive quarters of profitability and our frequency and severity trends point to continued profitability," said Gayle. "We are enthusiastic about the future of our residential property business and its long-term profitability, recognizing that it will experience short-term volatility in quarters with significant catastrophe losses. The Texas hailstorm was the largest single catastrophe in the Company's history and our claims operation handled approximately 7,300 claims related to this storm, of which only 250 claims remain open."
Vesta also incurred $7.6 million in net losses relating to discontinued operations in the quarter. The net losses relate, in part, to an adjustment of our estimated expense recoveries in an arbitration with Cigna Property and Casualty Insurance Company (n/k/a ACE Property and Casualty Insurance Company.) The adjustment is based on an ongoing audit of the expenses charged to Vesta under an assumed reinsurance treaty, and is subject to further modification at the conclusion of the audit.
E. Murray Meadows, CPA, has joined Vesta Insurance Group as Vice President and Controller. A graduate of Millsaps College in Jackson, Mississippi, Meadows was previously a senior manager with KPMG LLP in Nashville, Tenn.
Vesta management will hold its quarterly conference call to discuss second quarter 2003 results on August 6, 2003 at 10 AM EST. The conference call will be simultaneously webcast live online through Vesta's corporate website, www.vesta.com and http://www.firstcallevents.com/service/ajwz384680311gf12.html.
About Vesta Insurance Group, Inc.
Vesta, headquartered in Birmingham, Ala., is a holding company for a group of insurance and financial services companies that offer a wide range of consumer-based products.
This news release contains statements concerning management's beliefs, plans or objectives for Vesta's future operations or financial performance, including potential transactions described herein, and continued segment growth and profitability. These statements, whether expressed or implied, are only predictions and should be considered "forward-looking statements" under applicable securities laws. You should be aware that Vesta's actual operations and financial performance may differ materially from those reflected in these forward-looking statements. The main factors that could affect the forward-looking statements contained herein we may be unable to reach definitive agreements or obtain the requisite regulatory approval for the potential transactions described herein, that frequency and severity of insured losses in our standard property-casualty segment and/or our non-standard underwriting segment are greater than expected or that unfavorable developments in various arbitrations with reinsurers causes us to adjust our estimates of reinsurance recoverables. Please refer to the documents Vesta files from time to time with the Securities and Exchange Commission, specifically Vesta's most recent Form 10-K and Exhibit 99.1 attached thereto, which contains and identifies additional important factors that could cause the actual results to differ materially from those contained in the projections or forward-looking statements.
# # #
Vesta Insurance Group, Inc
2nd Quarter 2003 Segment Comparison
(amounts in thousands)
Life Insurance Standard Non-Standard Non-Standard Corp & Other Eliminations Consolidated
Property-Casualty Agency Underwriting
2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002
--------------- ----------------- ----------------- --------------- ---------------- -------------- ----------------
Revenues:
Net premiums written $2,317 $2,476 $81,509$103,536 -- -- $46,042 $43,384 $129,868 $149,396
(Increase) decrease in unearned premiums -- -- (2,161) (24,394) -- -- (4,247) (2,818) (6,408) (27,212)
--------------- ----------------- ---------------- -------------------------------- --------------- ------------------
Net premiums earned 2,317 2,476 79,348 79,142 -- -- 41,795 40,566 123,460 122,184
Net investment income 7,078 9,230 -- -- -- -- -- -- $ 2,793 $ 4,915 -- $(454) 9,871 13,691
Policy fees 632 1,133 2,892 1,290 5,549 3,082 -- -- -- -- 9,073 5,505
Agents fees and commissions -- -- -- -- $ 33,936 $26,172 -- -- -- -- $(17,082)(12,819) 16,854 13,353
Other 719 320 164 225 -- -- 773 1,628 203 216 -- -- 1,859 2,389
--------------- ----------------- ---------------- -------------------------------- --------------- ------------------
Total revenues 10,746 13,159 82,404 80,657 33,936 26,172 48,117 45,276 2,996 5,131 (17,082)(13,273) 161,117 157,122
Expenses:
Policyholder benefits 5,214 6,923 -- -- -- -- -- -- -- -- -- -- 5,214 6,923
Loss and LAE expenses incurred -- -- 64,997 59,336 -- -- 28,592 24,190 -- -- -- -- 95,089 83,526
Policy acquisition expenses 81 17 17,785 16,405 -- -- 12,091 12,153 -- -- (6,441)(4,806) 23,516 23,769
Operating expenses 2,407 2,646 11,264 9,735 30,142 22,671 5,091 5,757 5,054 6,096 (10,641)(8,013) 41,817 38,892
Interest on debt 1,436 1,588 -- -- 332 454 -- -- 1,385 2,307 -- (454) 3,153 3,895
Other intangible amortization -- -- -- -- -- -- -- -- 84 84 -- -- 84 84
--------------- ----------------- ---------------- -------------------------------- --------------- ------------------
Total expenses 9,138 11,174 94,046 85,476 30,474 23,125 45,774 42,100 6,523 8,487 (17,082)(13,273) 168,873 157,089
Income (loss) from continuing operations before
income taxes, deferrable capital securities,
and minority interest 1,608 1,985 (11,642) (4,819) 3,462 3,047 2,343 3,176 (3,527)(3,356) -- -- (7,756) 33
Income tax expense (benefit) 563 695 (4,075) (1,686) 1,212 1,066 820 1,112 (1,234)(1,175) -- -- (2,714) 12
Deferrable capital securities, net of tax -- -- -- -- -- -- -- -- 311 322 -- -- 311 322
Minority interest in subsidiary, net of tax -- 115 -- -- 93 182 -- -- -- -- -- -- 93 297
--------------- ----------------- ---------------- -------------------------------- --------------- ------------------
Net operating earnings (loss) from
continuing operations $1,045 $1,175 $(7,567) $(3,133) $2,157 $1,799 $1,523 $2,064 $(2,604)$(2,503) -- -- $ (5,446) $ (598)
=============== ================= ================ ================================ =============== ==================
Realized gains (loss), net of tax 183 919 - - - - - - 1,215 (1,892) - - 1,398 (973)
Gain on debt extinguishments, net of tax - - - - - - - - - - - - - -
--------------- ----------------- ---------------- -------------------------------- --------------- ------------------
Net income (loss) from
continuing operations $1,228 $2,094 $(7,567) $(3,133) $2,157 $1,799 $1,523 $2,064 $(1,389) $(4,395) -- -- $(4,048) $(1,571)
=============== ================= ================ ================================ =============== ==================
Vesta Insurance Group, Inc
2003 Year-to-Date Segment Comparison
(amounts in thousands)
Life Insurance Standard Non-Standard Non-Standard Corp & Other Eliminations Consolidated
Property-Casualty Agency Underwriting
2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002
--------------- ----------------- ----------------- --------------- ---------------- -------------- ----------------
Revenues:
Net premiums written $ 4,727 $ 5,533 $163,082$199,779 -- -- $ 93,005 $88,687 $260,814 $293,999
(Increase) decrease in unearned premiums -- -- (7,322) (54,271) -- -- (12,539)(12,247) (19,861) (66,518)
--------------- ----------------- ---------------- ---------------- --------------- ------------------
Net premiums earned 4,727 5,533 155,760 145,508 -- -- 80,466 76,440 240,953 227,481
Net investment income 14,773 18,536 -- -- -- -- -- -- $ 6,713 $ 9,297 $ - $ (574) 21,486 27,259
Policy fees 1,125 2,116 4,954 2,592 10,632 4,215 -- -- -- -- 16,711 8,923
Agents fees and commissions -- -- -- -- $ 72,858$ 58,734 -- -- -- -- (35,127)(27,001) 37,731 31,733
Other 1,361 657 406 225 -- -- 1,685 3,236 350 406 -- -- 3,802 4,524
--------------- ----------------- ---------------- -------------------------------- --------------- ------------------
Total revenues 21,986 26,842 161,120 148,325 72,858 58,734 92,783 83,891 7,063 9,703 (35,127)(27,575) 320,683 299,920
Expenses:
Policyholder benefits 10,304 14,751 -- -- -- -- -- -- -- -- -- -- 10,304 14,751
Loss and LAE expenses incurred -- -- 117,991 105,726 -- -- 55,104 47,805 -- -- -- -- 173,095 153,531
Policy acquisition expenses 450 160 36,413 31,469 -- -- 23,324 21,471 -- -- (14,887)(10,014) 45,300 43,086
Operating expenses 4,859 5,104 22,269 18,621 64,111 52,381 8,998 9,053 8,958 11,314 (20,240)(16,987) 88,955 79,486
Interest on debt 2,889 3,164 -- -- 332 574 -- -- 3,090 4,682 -- (574) 6,311 7,846
Other intangible amortization -- -- -- -- -- -- -- -- 168 168 -- -- 168 168
--------------- ----------------- ---------------- -------------------------------- --------------- ------------------
Total expenses 18,502 23,179 176,673 155,816 64,443 52,955 87,426 78,329 12,216 16,164 (35,127)(27,575) 324,133 298,868
Income (loss) from continuing operations
before income taxes, deferrable capital
securities, and minority interest 3,484 3,663 (15,553) (7,491) 8,415 5,779 5,357 5,562 (5,153)(6,461) -- -- (3,450) 1,052
Income tax expense (benefit) 1,219 1,282 (5,444) (2,622) 2,945 2,022 1,875 1,947 (1,804)(2,262) -- -- (1,209) 367
Deferrable capital securities, net of tax -- -- -- -- -- -- -- -- 622 451 -- -- 622 451
Minority interest in subsidiary, net of tax -- 151 -- -- 379 427 -- -- -- -- -- -- 379 578
--------------- ----------------- ---------------- -------------------------------- --------------- ------------------
Net operating earnings (loss)
from continuing operations $2,265 $2,230 $(10,109)(4,869) $5,091 $3,330 $3,482 $3,615 $(3,971) $(4,650) -- -- $ (3,242) $ (344)
=============== ================= ================ ================================ =============== ==================
Realized gains (loss), net of tax 178 1,262 3,500 (1,799) 3,678 (537)
Gain on debt extinguishments, net of tax - 897 - 897
--------------- ----------------- ---------------- -------------------------------- --------------- ------------------
Net income (loss) from
continuing operations $2,443 $3,492 $(10,109)$(4,869) $5,091 $3,330 $3,482 $3,615 $(471) $(5,552) -- -- $ 436 $ 16
=============== ================= ================ ================================ =============== ==================
Vesta Insurance Group, Inc
Second Quarter and Year-to-Date Results
(amounts in thousands, except share data)
| 3 Months Ended June 30, | 6 Months Ended June 30, | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2003 |
2002 |
2003 |
2002 | ||||||||||||||
| Revenues: | |||||||||||||||||
| Net premiums written | $ | 129,868 | $ | 149,396 | $ | 260,814 | $ | 293,999 | |||||||||
| (Increase) decrease in unearned premiums | (6,408 | ) | (27,212 | ) | (19,861 | ) | (66,518 | ) | |||||||||
| Net premiums earned | 123,460 | 122,184 | 240,953 | 227,481 | |||||||||||||
| Net investment income | 9,871 | 13,691 | 21,486 | 27,259 | |||||||||||||
| Policy fees | 9,073 | 5,505 | 16,711 | 8,923 | |||||||||||||
| Agents fees and commissions | 16,854 | 13,353 | 37,731 | 31,733 | |||||||||||||
| Other | 1,859 | 2,389 | 3,802 | 4,524 | |||||||||||||
| Total revenues | 161,117 | 157,122 | 320,683 | 299,920 | |||||||||||||
| Expenses: | |||||||||||||||||
| Policyholder benefits | 5,214 | 6,923 | 10,304 | 14,751 | |||||||||||||
| Loss and LAE expenses incurred | 93,589 | 83,526 | 173,095 | 153,531 | |||||||||||||
| Policy acquisition expenses | 23,516 | 23,769 | 45,300 | 43,086 | |||||||||||||
| Operating expenses | 43,317 | 38,892 | 88,955 | 79,486 | |||||||||||||
| Interest on debt | 3,153 | 3,895 | 6,311 | 7,846 | |||||||||||||
| Other intangible amortization | 84 | 84 | 168 | 168 | |||||||||||||
| Total expenses | 168,873 | 157,089 | 324,133 | 298,868 | |||||||||||||
| Income (loss) from continuing operations before income taxes, | |||||||||||||||||
| deferrable capital securities, and minority interest | (7,756 | ) | 33 | (3,450 | ) | 1,052 | |||||||||||
| Income taxes | (2,714 | ) | 12 | (1,209 | ) | 367 | |||||||||||
| Deferrable capital securities, net of tax | 311 | 322 | 622 | 451 | |||||||||||||
| Minority interest in subsidiary, net of tax | 93 | 297 | 379 | 578 | |||||||||||||
| Net operating earnings (loss) from continuing operations | (5,446 | ) | (598 | ) | (3,242 | ) | (344 | ) | |||||||||
| Realized gains (losses), net of tax and minority interest | 1,398 | (973 | ) | 3,678 | (537 | ) | |||||||||||
| Gain on debt extinguishments, net of tax | -- | -- | -- | 897 | |||||||||||||
| Net income (loss) from continuing operations | (4,048 | ) | (1,571 | ) | 436 | 16 | |||||||||||
| Gain (loss) from health insurance discontinued operations, net of tax | (612 | ) | (479 | ) | (1,210 | ) | (476 | ) | |||||||||
| Gain (loss) from consulting discontinued operations, net of tax | (14 | ) | 71 | (405 | ) | 218 | |||||||||||
| Loss from discontinued property-casualty operations, net of tax | (6,927 | ) | (9,504 | ) | (6,746 | ) | (9,492 | ) | |||||||||
| Net income (loss) | (11,601 | ) | (11,483 | ) | (7,925 | ) | (9,734 | ) | |||||||||
| Gain on redemption of preferred securities, net of tax | -- | -- | -- | 210 | |||||||||||||
| Income (loss) available to common shareholders | $ | (11,601 | ) | $ | (11,483 | ) | $ | (7,925 | ) | $ | (9,524 | ) | |||||
| Weighted average shares outstanding for the period | 34,896 | 33,780 | 34,880 | 33,394 | |||||||||||||
| Net operating earnings (loss) from continuing operations | |||||||||||||||||
| earnings per share | $ | (0.16 | ) | $ | (0.02 | ) | $ | (0.09 | ) | $ | (0.01 | ) | |||||
| Realized gains (losses) per share | $ | 0.04 | $ | (0.03 | ) | $ | 0.10 | $ | (0.02 | ) | |||||||
| Net income (loss) from continuing operations per share | $ | (0.12 | ) | $ | (0.05 | ) | $ | 0.01 | $ | 0.00 | |||||||
| Income (loss) available to common shareholders per share | $ | (0.33 | ) | $ | (0.34 | ) | $ | (0.23 | ) | $ | (0.29 | ) | |||||
Vesta Insurance Group, Inc
Condensed Consolidated Balance Sheet
(amounts in thousands, except per share amounts)
| June 30, 2003 |
December 31, 2002 | |||||||
|---|---|---|---|---|---|---|---|---|
| Assets: | ||||||||
| Invested assets | $ | 1,044,886 | $ | 1,010,590 | ||||
| Cash | 55,939 | 140,593 | ||||||
| Other assets | 941,860 | 891,675 | ||||||
| Total assets | $ | 2,042,685 | $ | 2,042,858 | ||||
| Liabilities: | ||||||||
| Future policy benefits | $ | 672,593 | $ | 678,419 | ||||
| Losses and loss adjustment expenses | 337,571 | 322,320 | ||||||
| Unearned premiums | 345,084 | 306,782 | ||||||
| Debt | 85,643 | 85,795 | ||||||
| Other liabilities | 348,676 | 391,236 | ||||||
| Total liabilities | 1,789,567 | 1,784,552 | ||||||
| Deferrable capital securities | 22,445 | 22,445 | ||||||
| Stockholders' equity | 230,673 | 235,861 | ||||||
| Total liabilities and stockholders' equity | $ | 2,042,685 | $ | 2,042,858 | ||||
| Equity per share* | $ | 6.47 | $ | 6.61 | ||||
| Shares outstanding at period end | 35,678 | 35,678 | ||||||
* At June 30, 2003 and December 31, 2002, unrealized gains and losses on fixed income securities, after-tax totaled approximately $19.2 and $15.1 million, respectively, which represents $0.54 and $0.42, respectively of book value per share.
Vesta Insurance Group, Inc
Reconciliation of Net Operating Earnings to Net Income
(amounts in thousands, except share data)
| 3 Months Ended June 30, | 6 Months Ended June 30, | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2003 |
2002 |
2003 |
2002 | ||||||||||||||
| Net operating earnings (loss) | $ | (5,446 | ) | $ | (598 | ) | $ | (3,242 | ) | $ | (344 | ) | |||||
| Special items: | |||||||||||||||||
| Realized gains (losses), net of tax and minority interest | 1,398 | (973 | ) | 3,678 | (537 | ) | |||||||||||
| Gain on debt extinguishments, net of tax | -- | -- | -- | 897 | |||||||||||||
| Net income (loss) from continuing operations | $ | (4,048 | ) | $ | (1,571 | ) | $ | 436 | $ | 16 | |||||||
| Gain (loss) from health insurance discontinued operations, net of tax | (612 | ) | (479 | ) | (1,210 | ) | (476 | ) | |||||||||
| Gain (loss) from consulting discontinued operations, net of tax | (14 | ) | 71 | (405 | ) | 218 | |||||||||||
| Loss from discontinued property-casualty operations, net of tax | (6,927 | ) | (9,504 | ) | (6,746 | ) | (9,492 | ) | |||||||||
| Net income (loss) | $ | (11,601 | ) | $ | (11,483 | ) | $ | (7,925 | ) | $ | (9,734 | ) | |||||
| Gain on redemption of preferred securities, net of tax | -- | -- | -- | 210 | |||||||||||||
| Income (loss) available to common shareholders | $ | (11,601 | ) | $ | (11,483 | ) | $ | (7,925 | ) | $ | (9,524 | ) | |||||
| Diluted earnings per share: | |||||||||||||||||
| Net operating earnings (loss) | $ | (0.16 | ) | $ | (0.02 | ) | $ | (0.09 | ) | $ | (0.01 | ) | |||||
| Special items: | |||||||||||||||||
| Realized gains (losses), net of tax and minority interest | $ | 0.04 | $ | (0.03 | ) | $ | 0.10 | $ | (0.02 | ) | |||||||
| Gain on debt extinguishments, net of tax | $ | -- | $ | -- | $ | -- | $ | 0.03 | |||||||||
| Net income (loss) from continuing operations | $ | (0.12 | ) | $ | (0.05 | ) | $ | 0.01 | $ | 0.00 | |||||||
| Gain (loss) from health insurance discontinued operations, net of tax | $ | (0.02) | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.01 | ) | ||||||
| Gain (loss) from consulting discontinued operations, net of tax | $ | (0.00 | ) | $ | 0.00 | $ | (0.01 | ) | $ | 0.01 | |||||||
| Loss from discontinued property-casualty operations, net of tax | $ | (0.19 | ) | $ | (0.28 | ) | $ | (0.19 | ) | $ | (0.29 | ) | |||||
| Net income (loss) | $ | (0.33 | ) | $ | (0.34 | ) | $ | (0.23 | ) | $ | (0.29 | ) | |||||
| Gain on redemption of preferred securities, net of tax | $ | -- | $ | -- | $ | -- | $ | 0.00 | |||||||||
| Income (loss) available to common shareholders | $ | (0.33 | ) | $ | (0.34 | ) | $ | (0.23 | ) | $ | (0.29 | ) | |||||
| Shares used in computing per share amounts: | |||||||||||||||||
| Weighted average shares outstanding for the period | 34,896 | 33,780 | 34,880 | 33,394 | |||||||||||||
The above table reconciles the Company's GAAP results to net operating earnings/ (loss). Management believes that net operating earnings/(loss) provides investors with a useful indicator to gauge possible future performance because it eliminates the effects of items that could cause significant impact to the Company's financial results from one period to another.