form8k_pressrelease03262012.htm
 UNITED STATES
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)
March 26, 2012 (March 26, 2012)
   
ATLANTIC AMERICAN CORPORATION
(Exact name of registrant as specified in its charter)
   
Georgia
0-3722
58-1027114
(State or other jurisdiction
of incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
   
4370 Peachtree Road, N.E., Atlanta, Georgia
30319
    (Address of principal executive offices)
(Zip Code)
   
Registrant’s telephone number, including area code
(404) 266-5500
   
N/A
(Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 

ATI-2421729v1                                                                     

 
 

 

Item 2.02  Results of Operations and Financial Condition

On March 26, 2012, Atlantic American Corporation (the “Registrant”) reported its results of operations for its fourth quarter and year ended December 31, 2011 and certain other matters. A copy of the press release issued by the Registrant concerning the foregoing is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01  Financial Statements and Exhibits

(d) Exhibits

99.1 Press Release, dated March 26, 2012.

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,  or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933.






 
 

 




 


SIGNATURES

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, hereunto duly authorized.
 
 
 

ATLANTIC AMERICAN CORORATION
   
   
By:
/s/ John G. Sample, Jr.
 
John G. Sample, Jr.
 
Senior Vice President and Chief Financial Officer

Date:  March 26, 2012






 
 

 



 

EXHIBIT INDEX
 


Exhibits:

Exhibit 99.1          Press release dated March 26, 2012














 

pressrelease_03262012.htm
 
 
EXHIBIT 99.1
ATLANTIC AMERICAN CORPORATION REPORTS
FOURTH QUARTER AND YEAR END RESULTS FOR 2011
AND RESTATEMENT OF 2010 FINANCIAL STATEMENTS

ATLANTA, Georgia, March 26, 2012 - Atlantic American Corporation (Nasdaq- AAME) today reported its results for the fourth quarter and year ended December 31, 2011.  For the fourth quarter ended December 31, 2011, the Company reported net income of $0.9 million, or $0.04 per diluted share, compared to a restated (as described below) net loss of $28 thousand, or $0.01 per diluted share, during the same period in 2010.  Operating income (income before income taxes and realized investment losses) was $1.5 million for the quarter ended December 31, 2011 and $368 thousand for the quarter ended December 31, 2010.  Premiums for the fourth quarter of 2011 increased 13.2% to $28.6 million compared to $25.3 million for the fourth quarter of 2010; as premiums in the life and health operations increased by $3.3 million, or 20.9%.

Atlantic American reported net income for the year ended December 31, 2011 of $3.3 million, or $0.12 per diluted share, as compared to restated net income of $1.0 million, or $0.02 per diluted share, for the year ended December 31, 2010.  Operating income more than doubled and was $3.3 million for the year ended December 31, 2011 as compared to $1.4 million for the year ended December 31, 2010.  Total premiums during 2011 increased 10.1% to $107.5 million from 2010 premiums of $97.6 million; and premiums in the life and health operations increased 11.6%, or $7.3 million, in 2011 as compared to 2010, while premiums in the property and casualty operations increased 7.4%, or $2.6 million, in that same period.

Separately, the Company has filed a current report on Form 8-K disclosing that it is restating its financial statements for the fourth quarter and year ended December 31, 2010.  The Company is recording a $2.3 million “other than temporary impairment” on certain equity securities and has determined that the fourth quarter of 2010 was the most appropriate time for the recording of such impairment.  Income before tax will be reduced by the $2.3 million non-cash impairment charge and net income will be reduced by $1.5 million in the 2010 fourth quarter and for the year ended December 31, 2010 as a result of the restatement.

Commenting on the results, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “We achieved a record-breaking year in underwriting new business in Bankers Fidelity, our life and health operation; while at the same time achieving solid growth in our property and casualty operation.  The overall double digit premium growth directly resulted in increased profitability as we managed our related expenses.  Currently, we are entering the early stages of a targeted television campaign for our life and health products and are extremely enthusiastic about the initial feedback from our agents, customers and employees.  As our Company continues to grow and prosper, we are committed to increasing our shareholder value.  While in 2010 we paid a “special” dividend; we have the confidence to characterize the current year dividend declared by our Board of Directors in February as an “annual” dividend.  And while disappointed with the need to restate our 2010 results for a non-cash charge, which had no effect on our total capitalization, we are excited by the prospect of the future premium and earnings growth for our Company.”

Atlantic American is an insurance holding company involved through its subsidiary companies in specialty markets of the life, health, and property and casualty insurance industries.  Its principal insurance subsidiaries are American Southern Insurance Company, American Safety Insurance Company and Bankers Fidelity Life Insurance Company.

Note regarding forward-looking statements:  This news release contains forward-looking statements subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements may relate to, among other things, our financial statements and results, and expectations of future results  Forward looking statements are based on management’s assumptions regarding, among other things, general economic and industry-specific business conditions, as well as the execution of our business strategy.  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 files with the Securities and Exchange Commission.

For further information contact:
   
John G. Sample, Jr.
 
Hilton H. Howell, Jr.
Senior Vice President and Chief Financial Officer
 
Chairman, President & CEO
Atlantic American Corporation
 
Atlantic American Corporation
404-266-5501
 
404-266-5505
 

 
 
 

 
Atlantic American Corporation
Financial Data

 
Three months ended
 
Year ended
 
Dec. 31,
 
Dec. 31,
(Unaudited; In thousands, except per share data)
2011
 
 
2010
 (Restated)
 
2011
 
 
2010
(Restated)
               
Insurance premiums
$    28,641
 
$     25,291
 
$   107,471
 
$     97,613
Investment income
2,675
 
2,302
 
10,587
 
9,737
Realized investment (losses) gains, net
(947)
 
(965)
 
27
 
(741)
Other income
35
 
65
 
247
 
280
               
Total revenue
30,404
 
26,693
 
118,332
 
106,889
               
Insurance benefits and losses incurred
19,461
 
17,588
 
73,614
 
66,854
Commissions and underwriting expenses
7,344
 
6,723
 
29,536
 
28,099
Interest expense
659
 
657
 
2,599
 
2,612
Other
2,353
 
2,322
 
9,268
 
8,703
               
  Total benefits and expenses
29,817
 
27,290
 
115,017
 
106,268
               
Income (loss) before income taxes
587
 
(597)
 
3,315
 
621
               
Income tax (benefit) expense
(338)
 
(569)
 
25
 
(369)
               
Net income (loss)
$        925
 
$        (28)
 
$     3,290
 
$         990
               
Basic earnings (loss) per common share
$        0.04
 
$      (0.01)
 
$         0.13
 
$         0.02
               
Diluted earnings (loss) per common share
$        0.04
 
$      (0.01)
 
$         0.12
 
$         0.02
               
               
 
December 31,
 
December 31,
       
Selected Balance Sheet Data
2011
 
2010
       
               
Total investments
$  229,785
 
$   184,628
       
Total assets
302,125
 
277,566
       
Insurance reserves and policyholder funds
147,194
 
137,902
       
Debt
41,238
 
41,238
       
Total shareholders' equity
96,277
 
82,693
       
Book value per common share
4.20
 
3.40
       
               

Reconciliation of Net Income to non-GAAP terms
   
 
Three months ended
 
Year ended
 
Dec. 31,
 
Dec. 31,
 
2011
 
 
2010
(Restated)
 
2011
 
 
2010
(Restated)
               
Net income (loss)
$         925
 
$         (28)
 
$       3,290
 
$          990
Income tax (benefit) expense
(338)
 
(569)
 
25
 
(369)
Realized investment losses (gains), net
947
 
965
 
(27)
 
741
               
Operating income
$    1,534
 
$         368
 
$     3,288
 
$     1,362