SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
| Date of Report (Date of Earliest Event Reported): August 13, 2003 (August 11, 2003) | ||
ATLANTIC AMERICAN CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
| Georgia (State or Other Jurisdiction of Incorporation) |
0-3722 (Commission File Numbers) |
58-1027114 (I.R.S. Employer Identification No.) |
| 4370 Peachtree Rd., N.E. Atlanta, Georgia (Address of Principal Executive Offices) |
30319 (Zip Code) |
|
| Registrant's Telephone Number, Including Area Code: (404) 266-5500 | ||
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
99.1 Press Release, dated August 11, 2003, reporting the results of operations of Atlantic American Corporation (the “Registrant”) for its second quarter ended June 30, 2003 (furnished and not filed herewith solely pursuant to Item 12).
Item 12. Results of Operations and Financial Condition
On August 11, 2003, the Registrant reported its results of operations for its second quarter ended June 30, 2003. A copy of the press release issued by the Registrant concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference. The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing. The information in this report, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.
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, thereunto duly authorized.
| ATLANTIC AMERICAN CORPORATION |
| By: /s/ John G. Sample, Jr. |
|
| John G. Sample, Jr. Senior Vice President and Chief Financial Officer |
|
Date: August 13, 2003
EXHIBIT INDEX
Exhibits:
Exhibit 99.1 Press release dated August 11, 2003
EXHIBIT 99.1
ATLANTIC AMERICAN CORPORATION REPORTS INCREASED SECOND QUARTER
EARNINGS
ATLANTA, Georgia, August 11, 2003 - Atlantic American Corporation (Nasdaq- AAME) today announced second quarter net income of $1.2 million, or $0.04 per diluted share, compared to net income of $0.9 million, or $0.03 per diluted share, in the second quarter of 2002. Current year to date net income was $1.9 million, or $0.06 per diluted share, compared to a year to date loss of $13.4 million, or $0.65 per diluted share, in 2002. In 2002, the Company reported a $15.8 million charge, or $0.73 per diluted share, attributable to the cumulative effect of a change in accounting principle for goodwill.
Total revenues for the second quarter were $43.5 million, increasing 1% over 2002 second quarter revenues of $43.1 million. For the six-month year to date period, revenues were $87.5 million, increasing 5% over the 2002 six-month year to date revenues of $83.1 million. Revenue growth in 2003 was enhanced by significant second quarter realized investment gains and increased investment earnings from a larger investment portfolio. Although earned premium during the second quarter declined 3%; for the six-month year to date period, earned premium reflected an increase of 3%.
Commenting on the quarter, Hilton H. Howell, Jr., president and chief executive officer, stated, “While pleased with our results for the second quarter, there continues to be substantial future opportunity. Our life and health as well as our specialty lines property and casualty companies continue to perform extremely well. And while our regional property and casualty companies continue to make progress with their operating performance, there is still opportunity for further enhancement. We will however continue with our rigorous and disciplined underwriting standards in order to ensure that the quality of our property and casualty business is not sacrificed.”
Atlantic American is an insurance holding company involved through its subsidiary companies in specialty markets of the life, health, property and casualty insurance industries. Its principal subsidiaries include American Southern Insurance Company, American Safety Insurance Company, Bankers Fidelity Life Insurance Company, Georgia Casualty & Surety Company, Association Risk Management General Agency, Association Casualty Insurance Company and Self-Insurance Administrators, Inc.
Note regarding Private Securities Litigation Reform Act: Except for historical information contained herein, this press release contains forward-looking statements that involve a number of risks and uncertainties. Actual results could differ materially from those indicated by such forward-looking statements due to a number of factors and risks detailed from time to time in statements and reports that Atlantic American Corporation has filed with the Securities and Exchange Commission.
For further information contact:
John G. Sample, Jr.
Senior Vice President and Chief Financial Officer
Atlantic American Corporation
404-266-5501
Atlantic American Corporation
Financial Data
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||
| (Unaudited; In thousands, except per share data) | 2003 |
2002 |
2003 |
2002 |
| Insurance premiums | $ 38,069 | $ 39,396 | $ 77,755 | $ 75,532 |
| Investment income | 3,931 | 3,539 | 7,870 | 6,911 |
| Realized investment gains (losses), net | 1,333 | (29) | 1,335 | 102 |
| Other income | 131 |
173 |
522 |
603 |
| Total revenue | 43,464 |
43,079 |
87,482 |
83,148 |
| Insurance benefits and losses incurred | 26,197 | 27,891 | 55,315 | 53,507 |
| Commissions and underwriting expenses | 11,084 | 10,346 | 21,190 | 19,100 |
| Interest expense | 764 | 643 | 1,468 | 1,249 |
| Other | 3,707 |
2,778 |
6,933 |
5,607 |
| Total benefits and expenses | 41,752 |
41,658 |
84,906 |
79,463 |
| Income before income tax expense and cumulative effect of change in accounting principle |
1,712 | 1,421 | 2,576 | 3,685 |
| Income tax expense | 501 |
479 |
669 |
1,238 |
| Income before cumulative effect of change in accounting principle |
1,211 | 942 | 1,907 | 2,447 |
| Cumulative effect of change in accounting principle | - |
- |
- |
(15,816) |
| Net income (loss) | 1,211 |
942 |
1,907 |
(13,369) |
| Basic income (loss) per common share: | ||||
| Income before cumulative effect of change in accounting principle |
$ .04 | $ .03 | $ .06 | $ .08 |
| Cumulative effect of change in accounting principle | - |
- |
- |
(.74) |
| Net income (loss) | $ .04
|
$ .03
|
$ .06
|
$ (.66)
|
| Diluted income (loss) per common share: | ||||
| Income before cumulative effect of change in accounting principle |
$ .04 | $ .03 | $ .06 | $ .08 |
| Cumulative effect of change in accounting principle | - |
- |
- |
(.73) |
| Net income (loss) | $ .04
|
$ .03
|
$ .06
|
$ (.65)
|
| Selected Balance Sheet Data |
June 30, 2003 |
December 31, 2002 |
| Total investments | $ 289,212 | $ 249,842 |
| Total assets | 460,223 | 423,493 |
| Insurance reserves and policy funds | 261,395 | 256,646 |
| Debt | 55,000 | 49,500 |
| Total shareholders' equity | 81,627 | 78,540 |
| Book value per common share | 3.13 | 2.93 |