SOURCE: Fortegra Financial Corporation

Fortegra Financial Corporation

August 11, 2014 16:15 ET

Fortegra Financial Announces a 13.4% Increase in Second Quarter Income From Continuing Operations Before Non-Controlling Interests

JACKSONVILLE, FL--(Marketwired - Aug 11, 2014) -  Fortegra Financial Corporation (NYSE: FRF), an insurance services company offering a wide array of revenue enhancing products, including payment protection products, motor club memberships, service contracts, device and warranty services, and administration services, to our business partners, including insurance companies, retailers, dealers, insurance brokers and agents and financial services companies, reported its results for the quarter ended June 30, 2014.

The following highlights compare our second quarter ended June 30, 2014 results to our second quarter ended June 30, 2013:

  • Direct and assumed written premiums increased 20.2% to a record $120.2 million.

  • Total revenues from continuing operations increased 4.2% to $88.5 million.

  • Net revenues from continuing operations* increased 5.2% to $27.3 million.

  • Income from continuing operations before non-controlling interests increased 13.4% to $3.9 million.

  • Adjusted EBITDA from continuing operations* increased 7.1% to $9.4 million.

* - A Non-GAAP financial measure.

"We are pleased to report that our second quarter of 2014 built on the success we delivered in the first quarter. Our second quarter results were driven by new business gains in our payment protection products and lower claims costs," said Richard S. Kahlbaugh, Chairman, President and Chief Executive Officer of Fortegra Financial. "Our second quarter performance compares quite favorably to the second quarter of 2013, which included higher net realized gains on the sale of investments of $1.3 million and a $0.4 million gain on the sale of our Magna subsidiary. Our direct and assumed written premiums were up 20.2% over the prior year to a record $120.2 million. Another key highlight is our ever-vigilant expense management, which is reflected in our EBITDA margin improvement and is being accomplished without compromising the level and quality of our services and products that we offer to our customers. The quarter reflects our continued success and we believe that we are well positioned for future growth. Moreover, we remain on target to meet our previously provided guidance."

Second Quarter 2014 Results
Total revenues from continuing operations increased $3.6 million, or 4.2%, to $88.5 million for the quarter ended June 30, 2014, compared to $84.9 million for the same period in 2013. The increase in revenues for 2014 includes organic growth of $0.7 million and $4.2 million as a result of the accounting treatment required under purchase accounting for the ProtectCELL acquisition, partially offset by $1.3 million of net realized gains on the sale of investments in 2013 that did not reoccur in 2014. The organic growth is primarily attributable to increases of $3.3 million from our payment protection products mainly reflected in ceding commissions and $1.6 million from our auto insurance products. Direct and assumed earned premiums increased $18.9 million, while ceded earned premiums increased $19.4 million due to higher subject premiums and 2014 increases to ceding percentages in certain reinsurance agreements; thus net earned premiums decreased but ceding commissions increased. These areas of growth were partially offset by a $2.4 million decrease in motor club revenues, a $1.3 million decrease in organic ProtectCELL revenues, and a $0.5 million net decrease from our smaller revenue streams.

Net revenues, a Non-GAAP financial measure, increased $1.4 million, or 5.2%, to $27.3 million for the three months ended June 30, 2014 compared to $25.9 million for the same period in 2013. This increase represents the organic growth in total revenues and lower member benefit claims and net losses and loss adjustment expenses, partially offset by increased commissions due to the growth in revenues, and the 2013 net realized investment gains that did not reoccur in 2014. Excluding the impact of net realized gains on the sale of investments, net revenues increased $2.6 million, or 10.7%.

Operating expenses, a Non-GAAP financial measure, increased $0.3 million, or 1.9%, to $18.2 million for the quarter ended June 30, 2014 compared to $17.9 million for the same period in 2013. The 2014 period included a $0.4 million increase in personnel costs at ProtectCELL resulting from adding staff during 2013 to support business objectives, partially offset by savings in other areas. Other operating expenses decreased $0.1 million, or 1.5%, to $8.2 million for the 2014 period compared to $8.4 million for the same period in 2013.

Income from continuing operations before non-controlling interests for the quarter ended June 30, 2014 increased $0.5 million, or 13.4%, to $3.9 million compared to $3.4 million for the same period in 2013.

Net income attributable to Fortegra Financial Corporation decreased $1.2 million, or 26.2%, to $3.3 million for the quarter ended June 30, 2014 compared to $4.4 million for the same period in 2013. Earnings per diluted share attributable to Fortegra Financial Corporation decreased 27.3% to $0.16 for the quarter ended June 30, 2014 compared to $0.22 for the same period in 2013. These decreases are attributable to the results of discontinued operations in the 2013 period.

Balance Sheet
Total investments and cash and cash equivalents increased to $163.2 million at June 30, 2014 compared to $160.5 million at December 31, 2013. Unearned premiums increased to $258.8 million at June 30, 2014 compared to $256.4 million at December 31, 2013. Total debt outstanding at June 30, 2014 increased to $46.0 million compared to $38.3 million at December 31, 2013. Accrued expenses and accounts payable decreased to $46.3 million at June 30, 2014 compared to $53.0 million at December 31, 2013, and liabilities of discontinued operations decreased to $0.9 million at June 30, 2014 compared to $8.6 million at December 31, 2013. Stockholders' equity increased to $175.3 million at June 30, 2014 compared to $166.5 million at December 31, 2013.

Guidance
Based on the Company's performance for the first half of 2014, management's operating assumptions for the remainder of the year and other factors, the Company is reiterating its 2014 guidance of net revenue growth of 7% to 9% and Adjusted EBITDA margin of 32% to 34%.

Conference Call Information
Fortegra's executive management will host a conference call to discuss its second quarter results on Tuesday, August 12, 2014 at 8:30 a.m. Eastern Time. To participate in the live call, dial (877) 407-3982 within the U.S., or (201) 493-6780 for international callers. A live audio webcast will also be available on the Investors page of the Company's website: http://www.fortegrafinancial.com. A replay of the call will be available beginning August 12, 2014 at 11:30 a.m. Eastern Time and ending on August 19, 2014 at 11:59 p.m. Eastern Time on the Company's website, and by dialing (877) 870-5176 in the U.S. or (858) 384-5517 for international callers. The pass code for the replay is 13587539.

Statistical Supplement
The Company has provided a statistical supplement, which is located in the "Investor Relations" section of the Company's website at: http://www.fortegrafinancial.com.

About Fortegra Financial Corporation
Fortegra Financial Corporation (references in this report to "Fortegra Financial," "Fortegra," "we," "us," "the Company" or similar terms refer to Fortegra Financial Corporation and its subsidiaries), traded on the New York Stock Exchange under the symbol: FRF, is an insurance services company headquartered in Jacksonville, Florida. Fortegra offers a wide array of revenue enhancing products, including payment protection products, motor club memberships, service contracts, device and warranty services, and administration services, to our business partners, including insurance companies, retailers, dealers, insurance brokers and agents and financial services companies. Fortegra's brands include Fortegra™, Life of the South®, 4Warranty, ProtectCELL™, Continental Car Club™, Auto Knight Motor Club™, United Motor Club™, Consecta™, Pacific Benefits Group™ and South Bay Acceptance Corporation.

Use of Non-GAAP Financial Information
We may present certain financial measures related to our business that are "Non-GAAP financial measures" within the meaning of Regulation G under the Securities Exchange Act of 1934. We present these Non-GAAP financial measures to provide investors with additional information to analyze our performance from period to period. Management also uses these measures to assess performance and to allocate resources in managing our businesses. However, investors should not consider these Non-GAAP financial measures as a substitute for the financial information that we report in accordance with U.S. GAAP. These Non-GAAP financial measures reflect subjective determinations by management, and may differ from similarly titled Non-GAAP financial measures presented by other companies.

In this Earnings Release, we may present Net income from continuing operations -- Non-GAAP Basis, Non-GAAP Earnings per share from continuing operations -- basic and diluted, Net revenues, Operating expenses, EBITDA from continuing operations and Adjusted EBITDA from continuing operations. These financial measures are Non-GAAP financial measures and are not recognized terms under U.S. GAAP and should not be used as an indicator of, and are not an alternative to, net income or earnings per share as a measure of operating performance. Net income from continuing operations -- Non-GAAP Basis generally means net income adjusted (on a tax-effected basis) by transaction costs associated with acquisitions, stock-based compensation, restructuring expenses, and unusual or non-recurring charges and items that affect comparability of results. Non-GAAP earnings per share from continuing operations -- basic and diluted adjust for the impact of the Non-GAAP adjustments to net income, net of tax, on a per share basis. Net revenues are total revenues less net losses and loss adjustment expenses, member benefit claims, and commission expenses. Operating expenses are the sum of personnel costs and other operating expenses. EBITDA from continuing operations is net income before interest expense, income taxes, net income attributable to non-controlling interests, depreciation and amortization. Adjusted EBITDA from continuing operations means "Consolidated Adjusted EBITDA", which is defined under our credit facility with Wells Fargo Bank, N.A. and which generally means consolidated net income before net income attributable to non-controlling interests, consolidated interest expense, consolidated amortization expense, consolidated depreciation expense and consolidated income tax expense, relating to continuing operations. The other items excluded in this calculation may include if applicable, but are not limited to, specified acquisition costs, impairment of goodwill and other non-cash charges, stock-based compensation expense, and unusual or non-recurring charges and items that affect comparability of results. The calculations presented in the tables "RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION (Unaudited)" do not give effect to certain additional adjustments permitted under our credit facility, which if included, would increase the amount of Adjusted EBITDA from continuing operations reflected in this table. We believe presenting Net Income from continuing operations -- Non-GAAP Basis, Non-GAAP Earnings per share from continuing operations -- basic and diluted, Net revenue, Operating expenses, EBITDA from continuing operations and Adjusted EBITDA from continuing operations provides investors with supplemental financial measures of our operating performance.

In addition to the financial covenant requirements under our credit facility, management uses Net income from continuing operations -- Non-GAAP Basis, Non-GAAP Earnings per share from continuing operations -- basic and diluted, Net revenues, Operating expenses, EBITDA from continuing operations and Adjusted EBITDA from continuing operations as financial measures of operating performance for planning purposes, which may include, but are not limited to, the preparation of budgets and projections, the determination of bonus compensation for executive officers, the analysis of the allocation of resources and the evaluation of the effectiveness of business strategies. We measure Net revenue as another means of understanding product contributions to our results. We measure Operating expenses to reconcile from Net revenues to EBITDA. Although we use EBITDA from continuing operations and Adjusted EBITDA from continuing operations as financial measures to assess the operating performance of our business, both measures have significant limitations as analytical tools because they exclude certain material expenses. For example, they do not include interest expense and the payment of income taxes, which are both necessary elements of our costs and operations. Since we use property and equipment to generate revenues, depreciation expense is a necessary element of our costs. In addition, the omission of amortization expense associated with our intangible assets further limits the usefulness of this financial measure. Management believes the inclusion of the adjustments to EBITDA from continuing operations to derive Adjusted EBITDA from continuing operations are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future. Because EBITDA from continuing operations and Adjusted EBITDA from continuing operations do not account for these expenses, their utility as financial measures of our operating performance has material limitations. Due to these limitations, management does not view EBITDA from continuing operations and Adjusted EBITDA from continuing operations in isolation or as primary financial performance measures.

We believe Net income from continuing operations -- Non-GAAP Basis, Non-GAAP Earnings per share from continuing operations -- basic and diluted, EBITDA from continuing operations and Adjusted EBITDA from continuing operations are frequently used by securities analysts, investors and other interested parties in the evaluation of similar companies in similar industries and to measure the company's ability to service its debt and other cash needs. Because the definitions of Net income from continuing operations -- Non-GAAP Basis, Non-GAAP Earnings per share from continuing operations -- basic and diluted, EBITDA from continuing operations and Adjusted EBITDA from continuing operations (or similar financial measures) may vary among companies and industries, they may not be comparable to other similarly titled financial measures used by other companies.

Forward-Looking Statements
This press release should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013 along with our other filings with the Securities and Exchange Commission ("SEC"). This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. Such forward-looking statements are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "project,'' "plan," "intend," "believe," "may," "should," "can have," "likely" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.

The forward-looking statements contained or referred to in this press release (including statements regarding: the Company's guidance related to net revenue growth and Adjusted EBITDA margins, the impact of seasonality on EBITDA margins, second half of 2014 business momentum, management's operating assumptions, the Company being well positioned for future growth, the efficiency and flexibility of our business under our new operating structure, the size of the market opportunity resulting from our competitor's announced exit from a segment of the payment protection market and management's projected premium growth, the level of contribution of our recently introduced products to our revenue growth in 2014, and new product launches) are based on assumptions that we have made in light of our industry experience and our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. As you read this press release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond our control) and assumptions. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. We believe these factors include, but are not limited to, those described under Item 1A. - "Risk Factors" in Fortegra's most current Annual Report on Form 10-K and most current Quarterly Report on Form 10-Q, and any amendments to those reports. Should one or more of these risks or uncertainties materialize, or should any of these assumptions prove incorrect, our actual results may vary in material respects from those projected in these forward-looking statements.

Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether the result of new information, future developments or otherwise, except as may be required by law.

Further information concerning Fortegra and its business, including factors that potentially could materially affect Fortegra's financial results, is contained in Fortegra's filings with the SEC, which are available free of charge at the SEC's website at http://www.sec.gov and from Fortegra's website in the "Investor Relations" section under "SEC Filings" at http://www.fortegrafinancial.com.

   
   
FORTEGRA FINANCIAL CORPORATION  
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)  
(All Amounts in Thousands, Except Share and Per Share Amounts)  
                     
    For the Three Months Ended June 30,     For the Six Months Ended June 30,  
    2014   2013     2014   2013  
Revenues:                            
  Service and administrative fees   $ 42,074   $ 42,040     $ 86,042   $ 80,898  
  Ceding commissions     11,996     6,957       22,545     14,120  
  Net investment income     777     746       1,484     1,649  
  Net realized investment gains     4     1,280       5     1,287  
  Net earned premium     33,163     33,681       68,091     66,823  
  Other income     510     243       885     334  
    Total revenues     88,524     84,947       179,052     165,111  
                             
Expenses:                            
  Net losses and loss adjustment expenses     9,877     10,604       20,703     21,139  
  Member benefit claims     10,511     11,424       21,182     20,790  
  Commissions     40,842     36,986       80,913     72,348  
  Personnel costs     9,980     9,508       20,171     20,305  
  Other operating expenses     8,237     8,364       16,462     16,439  
  Depreciation and amortization     1,229     1,205       2,478     2,382  
  Amortization of intangibles     1,318     1,299       2,635     2,767  
  Interest expense     934     946       1,854     1,799  
  Loss on note receivable     --     --       1,317     --  
  (Gain) on sale of subsidiary     --     (402 )     --     (402 )
    Total expenses     82,928     79,934       167,715     157,567  
Income from continuing operations before income taxes     5,596     5,013       11,337     7,544  
  Income taxes - continuing operations     1,718     1,593       3,700     2,075  
Income from continuing operations before non-controlling interests     3,878     3,420       7,637     5,469  
Discontinued operations:                            
  Income from discontinued operations - net of tax     --     1,207       --     2,469  
Discontinued operations - net of tax     --     1,207       --     2,469  
Net income before non-controlling interests     3,878     4,627       7,637     7,938  
  Less: net income attributable to non-controlling interests     602     185       1,463     1,003  
Net income attributable to Fortegra Financial Corporation   $ 3,276   $ 4,442     $ 6,174   $ 6,935  
                             
Earnings per share - Basic:                            
Net income from continuing operations - net of tax   $ 0.17   $ 0.17     $ 0.31   $ 0.23  
Discontinued operations - net of tax     --     0.06       --     0.13  
    Net income attributable to Fortegra Financial Corporation   $ 0.17   $ 0.23     $ 0.31   $ 0.36  
                             
Earnings per share - Diluted:                            
Net income from continuing operations - net of tax   $ 0.16   $ 0.16     $ 0.30   $ 0.22  
Discontinued operations - net of tax     --     0.06       --     0.12  
    Net income attributable to Fortegra Financial Corporation   $ 0.16   $ 0.22     $ 0.30   $ 0.34  
                             
Weighted average common shares outstanding:                            
  Basic     19,745,115     19,540,610       19,698,444     19,548,632  
  Diluted     20,440,133     20,523,090       20,463,929     20,583,951  
                               
                               
                               
FORTEGRA FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME - Discontinued Operations (Unaudited)
(All Amounts in Thousands)
         
    For the Three Months Ended   For the Six Months Ended
    June 30, 2013   June 30, 2013
Income from discontinued operations:            
Revenues:            
  Brokerage commissions and fees   $ 9,891   $ 19,622
  Net investment income     6     12
  Other income     16     16
Total revenues     9,913     19,650
             
Expenses:            
  Personnel costs     5,086     10,135
  Other operating expenses     1,546     2,888
  Depreciation and amortization     162     303
  Amortization of intangibles     481     961
  Interest expense     598     1,189
Total expenses     7,873     15,476
Income from discontinued operations before income taxes     2,040     4,174
  Income taxes - discontinued operations     833     1,705
Income from discontinued operations - net of tax   $ 1,207   $ 2,469
             
             
             
FORTEGRA FINANCIAL CORPORATION  
CONSOLIDATED BALANCE SHEETS (Unaudited)  
(All Amounts in Thousands)  
             
    At  
    June 30,
2014
    December 31,
2013
 
Assets:                
Investments:                
  Fixed maturity securities available-for-sale, at fair value   $ 144,816     $ 131,751  
  Equity securities available-for-sale, at fair value     6,901       6,198  
  Short-term investments     871       871  
    Total investments     152,588       138,820  
Cash and cash equivalents     10,657       21,681  
Restricted cash     12,279       17,293  
Accrued investment income     1,339       1,175  
Notes receivable, net     18,297       11,920  
Accounts and premiums receivable, net     15,743       18,702  
Other receivables     29,941       33,409  
Reinsurance receivables     219,074       215,084  
Deferred acquisition costs     67,841       78,042  
Property and equipment, net     13,133       14,332  
Goodwill     73,701       73,701  
Other intangible assets, net     46,538       49,173  
Other assets     7,820       6,307  
Assets of discontinued operations     491       791  
      Total assets   $ 669,442     $ 680,430  
                 
Liabilities:                
Unpaid claims   $ 38,549     $ 34,732  
Unearned premiums     258,778       256,380  
Policyholder account balances     22,081       23,486  
Accrued expenses, accounts payable and other liabilities     46,290       53,035  
Income taxes payable     2,722       2,842  
Deferred revenue     59,508       76,927  
Notes payable     10,979       3,273  
Preferred trust securities     35,000       35,000  
Deferred income taxes, net     19,288       19,659  
Liabilities of discontinued operations     908       8,603  
      Total liabilities     494,103       513,937  
                 
Stockholders' Equity:                
Preferred stock     --       --  
Common stock     213       209  
Treasury stock     (8,014 )     (8,014 )
Additional paid-in capital     100,121       99,398  
Accumulated other comprehensive loss, net of tax     (1,560 )     (3,665 )
Retained earnings     78,706       72,532  
      Stockholders' equity before non-controlling interests     169,466       160,460  
Non-controlling interests     5,873       6,033  
      Total stockholders' equity     175,339       166,493  
        Total liabilities and stockholders' equity   $ 669,442     $ 680,430  
                         
                         
                         
FORTEGRA FINANCIAL CORPORATION  
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION (Unaudited)  
NET REVENUES, OPERATING EXPENSES, EBITDA FROM CONTINUING OPERATIONS AND  
ADJUSTED EBITDA FROM CONTINUING OPERATIONS  
(All Amounts in Thousands, except for percentages)  
                         
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION - NET REVENUES  
    For the Three Months Ended
June 30,
    For the Six Months Ended
June 30,
 
    2014     2013     2014     2013  
Total revenues   $ 88,524     $ 84,947     $ 179,052     $ 165,111  
Less:                                
  Net losses and loss adjustment expenses     9,877       10,604       20,703       21,139  
  Member benefit claims     10,511       11,424       21,182       20,790  
  Commissions     40,842       36,986       80,913       72,348  
Net revenues   $ 27,294     $ 25,933     $ 56,254     $ 50,834  
                                 
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION - OPERATING EXPENSES  
    For the Three Months Ended
June 30,
    For the Six Months Ended
June 30,
 
    2014     2013     2014     2013  
Personnel costs   $ 9,980     $ 9,508     $ 20,171     $ 20,305  
Other operating expenses     8,237       8,364       16,462       16,439  
Operating expenses   $ 18,217     $ 17,872     $ 36,633     $ 36,744  
                                 
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION - EBITDA FROM CONTINUING OPERATIONS AND ADJUSTED EBITDA FROM CONTINUING OPERATIONS  
    For the Three Months Ended
June 30,
    For the Six Months Ended
June 30,
 
    2014     2013     2014     2013  
Income from continuing operations before non-controlling interests   $ 3,878     $ 3,420     $ 7,637     $ 5,469  
  Depreciation     1,229       1,205       2,478       2,382  
  Amortization of intangibles     1,318       1,299       2,635       2,767  
  Interest expense     934       946       1,854       1,799  
  Income taxes     1,718       1,593       3,700       2,075  
EBITDA from continuing operations     9,077       8,463       18,304       14,492  
  Transaction costs (1)     18       55       28       141  
  Restructuring expenses     --       80       --       1,234  
  (Gain) on sale of subsidiary     --       (402 )     --       (402 )
  Legal expenses     --       243       --       243  
  Stock-based compensation expense     291       328       581       632  
  Loss on note receivable     --       --       1,317       --  
Adjusted EBITDA from continuing operations   $ 9,386     $ 8,767     $ 20,230     $ 16,340  
                                 
EBITDA from continuing operations margin (2)     33.3 %     32.6 %     32.5 %     28.5 %
Adjusted EBITDA from continuing operations margin (3)     34.4 %     33.8 %     36.0 %     32.1 %
                                 
(1) Represents transaction costs associated with completed and/or potential acquisitions.  
(2) EBITDA from continuing operations margin is calculated by dividing EBITDA from continuing operations by Net Revenues.  
(3) Adjusted EBITDA from continuing operations margin is calculated by dividing Adjusted EBITDA from continuing operations by Net Revenues.  
   
   
   
FORTEGRA FINANCIAL CORPORATION  
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION (Unaudited)  
NET INCOME FROM CONTINUING OPERATIONS - NON-GAAP BASIS  
AND NON-GAAP EARNINGS PER SHARE FROM CONTINUING OPERATIONS  
(All Amounts in Thousands, Except Share and Per Share Amounts)  
                     
    For the Three Months Ended June 30,     For the Six Months Ended June 30,  
    2014   2013     2014   2013  
Income from continuing operations before non-controlling interests   $ 3,878   $ 3,420     $ 7,637   $ 5,469  
    Less: net income attributable to non-controlling interests     602     185       1,463     1,003  
Net income from continuing operations     3,276     3,235       6,174     4,466  
Non-GAAP Adjustments, net of tax *                            
    Transaction costs associated with acquisitions (1)     18     55       28     141  
    Stock-based compensation     189     213       378     410  
    Loss on note receivable     --     --       857     --  
    Gain on sale of subsidiary     --     (261 )     --     (261 )
    Restructuring expenses     --     52       --     799  
    Legal     --     158       --     158  
  Total Non-GAAP adjustments, net of tax     207     217       1,263     1,247  
Net income from continuing operations - Non-GAAP basis   $ 3,483   $ 3,452     $ 7,437   $ 5,713  
                             
Earnings per share - Basic:                            
GAAP earnings per share from continuing operations - basic   $ 0.17   $ 0.17     $ 0.31   $ 0.23  
  Non-GAAP adjustments, net of tax     0.01     0.01       0.07     0.06  
Non-GAAP earnings per share from continuing operations - basic   $ 0.18   $ 0.18     $ 0.38   $ 0.29  
                             
Earnings per share - Diluted:                            
GAAP earnings per share from continuing operations - diluted   $ 0.16   $ 0.16     $ 0.30   $ 0.22  
  Non-GAAP adjustments, net of tax     0.01     0.01       0.06     0.06  
Non-GAAP earnings per share from continuing operations - diluted   $ 0.17   $ 0.17     $ 0.36   $ 0.28  
                             
Weighted average common shares outstanding:                            
  Basic     19,745,115     19,540,610       19,698,444     19,548,632  
  Diluted     20,440,133     20,523,090       20,463,929     20,583,951  
                             
* - Tax effected at approximately 35.0%.  
(1) Adjustments not tax effected.  
Note: Earnings per share amounts may not add or recalculate due to rounding.