Form 10-Q Heritage Insurance Holdi For: Sep 30

November 6, 2019 4:13 PM

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

 

Form 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number

001-36462

 

Heritage Insurance Holdings, Inc.

(Exact name of Registrant as specified in its charter)

 

Delaware

 

45-5338504

(State of Incorporation)

 

(IRS Employer

Identification No.)

2600 McCormick Drive, Suite 300

Clearwater, Florida 33759

(Address, including zip code, of principal executive offices)

(727) 362-7200

(Registrant’s telephone number, including area code)

 Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

HRTG

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Emerging growth company

Non-accelerated filer

Smaller reporting company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes No

The aggregate number of shares of the Registrant’s Common Stock outstanding on November 4, 2019 was 29,534,375

 

 

 


HERITAGE INSURANCE HOLDINGS, INC.

Table of Contents

 

 

 

Page

PART I – FINANCIAL INFORMATION

 

 

Item 1 Unaudited Financial Statements

 

2

Condensed Consolidated Balance Sheets: September 30, 2019 (unaudited) and December 31, 2018

 

2

Condensed Consolidated Statements of Operations and Other Comprehensive Income: Three and Nine months ended September 30, 2019 and 2018 (unaudited)

 

3

Condensed Consolidated Statements of Stockholders’ Equity: Three and Nine months ended September 30, 2019 and 2018 (unaudited)

 

4

Condensed Consolidated Statements of Cash Flows: Nine months ended September 30, 2019 and 2018 (unaudited)

 

6

Notes to Unaudited Condensed Consolidated Financial Statements

 

8

Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

28

Item 3 Quantitative and Qualitative Disclosures about Market Risk

 

38

Item 4 Controls and Procedures

 

39

PART II – OTHER INFORMATION

 

 

Item 1 Legal Proceedings

 

40

Item 1A Risk Factors

 

40

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds

 

40

Item 4 Mine Safety Disclosures

 

40

Item 6 Exhibits

 

40

Signatures

 

42

 

 

 

 


 

FORWARD-LOOKING STATEMENTS

Statements in this Quarterly Report on Form 10-Q (“Form 10-Q”) or in documents incorporated by reference that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements about (i) our ability to meet our investment objectives and to manage and mitigate market risk with respect to our investments; (ii) the adequacy of our reinsurance program and our ability to diversify risk and safeguard our financial position; (iii) our estimates with respect to tax and accounting matters including the impact on our financial statements; (iv) future dividends, if any; (v) our expectations related to our financing activities; (vi) the sufficiency of our liquidity to pay our insurance company affiliates’ claims and expenses, as well as to satisfy commitments in the event of unforeseen events; (vii) the sufficiency of our capital resources, together with cash provided from our operations, to meet currently anticipated working capital requirements; (viii) the potential effects of the seasonality of our business, including effects on our reinsurance business and financial results; (ix) our intentions with respect to our credit risk investments; and (x) the potential effects of our current legal proceedings.

These statements are based on current expectations, estimates and projections about the industry and market in which we operate, and management’s beliefs and assumptions. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “would,” “estimate,” or “continue” or the negative variations thereof or comparable terminology are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and involve certain known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertainties include, without limitation:

 

 

the possibility that actual losses may exceed reserves;

 

the concentration of our business in coastal states, which could be impacted by hurricane losses or other significant weather-related events such as northeastern winter storms;

 

our exposure to catastrophic weather events;

 

the fluctuation in our results of operations;

 

increased costs of reinsurance, non-availability of reinsurance, and non-collectability of reinsurance;

 

our failure to identify suitable acquisition candidates; effectively manage our growth and integrate acquired companies;

 

increased competition, competitive pressures, and market conditions;

 

our failure to accurately price the risks we underwrite;

 

inherent uncertainty of our models and our reliance on such models as a tool to evaluate risk;

 

the failure of our claims department to effectively manage or remediate claims;

 

low renewal rates and failure of such renewals to meet our expectations;

 

our failure to execute our diversification strategy;

 

failure of our information technology systems and unsuccessful development and implementation of new technologies;

 

a lack of redundancy in our operations;

 

our failure to attract and retain qualified employees and independent agents or our loss of key personnel;

 

our inability to generate investment income;

 

our inability to maintain our financial stability rating;

 

effects of emerging claim and coverage issues relating to legal, judicial, environmental and social conditions;

 

the failure of our risk mitigation strategies or loss limitation methods;

 

our reliance on independent agents to write voluntary insurance policies;

 

changes in regulations and our failure to meet increased regulatory requirements;

 

our ability to maintain effective internal controls over financial reporting;

 

our status as an “emerging growth company”;

 

the regulation of our insurance operations; and

 

certain characteristics of our common stock.

 


 

Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or operating results.

These forward-looking statements are subject to numerous risks, uncertainties and assumptions about us described in our filings with the Securities and Exchange Commission (the “SEC”). The forward-looking statements we make in our Form 10-Q are valid only as of the date of our Form 10-Q and may not occur in light of the risks, uncertainties and assumptions that we describe from time to time in our filings with the SEC. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from our forward-looking statements is included in the section entitled “Risk Factors” in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2018. Except as required by applicable law, we undertake no obligation and disclaim any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

 

 


 

PART I – FINANCIAL INFORMATION

Item 1 – Financial Statements

HERITAGE INSURANCE HOLDINGS, INC.

Condensed Consolidated Balance Sheets

(Amounts in thousands, except per share and share amounts)

 

 

 

September 30, 2019

 

 

December 31, 2018

 

ASSETS

 

(unaudited)

 

 

 

 

 

Fixed maturities, available-for-sale, at fair value (amortized cost of $604,821 and $518,391)

 

$

616,084

 

 

$

509,649

 

Federal Home Loan Bank (FHLB) stock, at cost

 

 

1,618

 

 

 

1,422

 

Equity securities, at fair value, (cost $18,698)

 

 

 

 

 

15,034

 

Other investments

 

 

27,372

 

 

 

2,488

 

Total investments

 

 

645,074

 

 

 

528,593

 

Cash and cash equivalents

 

 

229,996

 

 

 

250,117

 

Restricted cash

 

 

13,789

 

 

 

12,253

 

Accrued investment income

 

 

4,665

 

 

 

4,468

 

Premiums receivable, net

 

 

58,115

 

 

 

57,000

 

Reinsurance recoverable on paid and unpaid claims

 

 

274,116

 

 

 

317,930

 

Prepaid reinsurance premiums

 

 

270,645

 

 

 

233,071

 

Income taxes receivable

 

 

10,611

 

 

 

35,586

 

Deferred policy acquisition costs, net

 

 

75,613

 

 

 

73,055

 

Property and equipment, net

 

 

20,873

 

 

 

17,998

 

Intangibles, net

 

 

70,569

 

 

 

76,850

 

Goodwill

 

 

152,459

 

 

 

152,459

 

Other assets

 

 

16,354

 

 

 

9,333

 

Total Assets

 

$

1,842,879

 

 

$

1,768,713

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Unpaid losses and loss adjustment expenses

 

$

417,586

 

 

$

432,359

 

Unearned premiums

 

 

484,849

 

 

 

472,357

 

Reinsurance payable

 

 

254,152

 

 

 

166,975

 

Long-term debt, net

 

 

130,849

 

 

 

148,794

 

Deferred income tax, net

 

 

14,278

 

 

 

7,705

 

Advance premiums

 

 

21,244

 

 

 

20,000

 

Accrued compensation

 

 

8,263

 

 

 

9,226

 

Accounts payable and other liabilities

 

 

66,428

 

 

 

85,964

 

Total Liabilities

 

$

1,397,649

 

 

$

1,343,380

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 17)

 

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value, 50,000,000 shares authorized, 29,534,375 shares issued and 28,963,841 shares outstanding at September 30, 2019; 30,083,559 shares issued and 29,477,756 shares outstanding at December 31, 2018

 

 

3

 

 

 

3

 

Additional paid-in capital

 

 

331,558

 

 

 

325,292

 

Accumulated other comprehensive income (loss)

 

 

8,550

 

 

 

(6,527

)

Treasury stock, at cost, 8,036,560 and 7,214,797 shares, respectively

 

 

(101,078

)

 

 

(89,185

)

Retained earnings

 

 

206,197

 

 

 

195,750

 

Total Stockholders' Equity

 

 

445,230

 

 

 

425,333

 

Total Liabilities and Stockholders' Equity

 

$

1,842,879

 

 

$

1,768,713

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

2


 

HERITAGE INSURANCE HOLDINGS, INC.

Condensed Consolidated Statements of Operations and Other Comprehensive Income

(Unaudited)

(Amounts in thousands, except per share and share amounts)

 

 

 

For the Three Months Ended

September 30,

 

 

For the Nine Months Ended

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

237,303

 

 

$

233,613

 

 

$

702,491

 

 

$

701,643

 

Change in gross unearned premiums

 

 

(5,686

)

 

 

551

 

 

 

(12,326

)

 

 

(9,345

)

Gross premiums earned

 

 

231,617

 

 

 

234,164

 

 

 

690,165

 

 

 

692,298

 

Ceded premiums

 

 

(107,755

)

 

 

(115,926

)

 

 

(342,529

)

 

 

(356,748

)

Net premiums earned

 

 

123,862

 

 

 

118,238

 

 

 

347,636

 

 

 

335,550

 

Net investment income

 

 

3,655

 

 

 

3,847

 

 

 

11,157

 

 

 

9,704

 

Net realized and unrealized gains (losses)

 

 

805

 

 

 

(123

)

 

 

3,132

 

 

 

(1,234

)

Other revenue

 

 

3,377

 

 

 

3,333

 

 

 

10,878

 

 

 

11,273

 

Total revenues

 

 

131,699

 

 

 

125,295

 

 

 

372,803

 

 

 

355,293

 

EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

70,052

 

 

 

58,695

 

 

 

206,490

 

 

 

177,775

 

Policy acquisition costs, net of ceding commission income for the three and nine months ended September 30, 2019 of $11.3 million and $36.8 million, respectively

 

 

26,686

 

 

 

26,569

 

 

 

79,793

 

 

 

58,167

 

General and administrative expenses, net of ceding commission income for the three and nine months ended September 30, 2019 of $3.7 million and $12 million, respectively

 

 

21,477

 

 

 

25,815

 

 

 

58,465

 

 

 

72,167

 

Total expenses

 

 

118,215

 

 

 

111,079

 

 

 

344,748

 

 

 

308,109

 

Operating income

 

 

13,484

 

 

 

14,216

 

 

 

28,055

 

 

 

47,184

 

Interest expense, net

 

 

2,401

 

 

 

5,225

 

 

 

6,502

 

 

 

15,431

 

Other non-operating (income)/loss, net

 

 

 

 

 

 

 

 

48

 

 

 

(542

)

Income before income taxes

 

 

11,083

 

 

 

8,991

 

 

 

21,505

 

 

 

32,295

 

Provision for income taxes

 

 

2,950

 

 

 

3,002

 

 

 

5,687

 

 

 

9,068

 

Net income

 

$

8,133

 

 

$

5,989

 

 

$

15,818

 

 

$

23,227

 

OTHER COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in net unrealized gains (losses) on investments

 

 

4,429

 

 

 

(2,895

)

 

 

19,533

 

 

 

(9,918

)

Reclassification adjustment for net realized investment losses

 

 

(103

)

 

 

(5

)

 

 

291

 

 

 

307

 

Income tax (expense) benefit related to items of other comprehensive income

 

 

(1,035

)

 

 

1,665

 

 

 

(4,747

)

 

 

3,249

 

Total comprehensive income

 

$

11,424

 

 

$

4,754

 

 

$

30,895

 

 

$

16,865

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

29,109,962

 

 

 

25,631,871

 

 

 

29,329,742

 

 

 

25,663,415

 

Diluted

 

 

29,168,392

 

 

 

26,046,938

 

 

 

29,352,756

 

 

 

26,340,759

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.28

 

 

$

0.23

 

 

$

0.54

 

 

$

0.91

 

Diluted

 

$

0.28

 

 

$

0.23

 

 

$

0.54

 

 

$

0.88

 

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

 

 

3


 

HERITAGE INSURANCE HOLDINGS, INC.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

(Amounts in thousands, except share amounts)

 

 

 

Common Shares

Issued

 

 

Par Value

 

 

Additional

Paid-In

Capital

 

 

Retained

Earnings

 

 

Treasury Shares

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Total

Stockholders'

Equity

 

Balance at December 31, 2018

 

 

29,477,756

 

 

$

3

 

 

$

325,292

 

 

$

195,750

 

 

$

(89,185

)

 

$

(6,527

)

 

$

425,333

 

Net unrealized change in investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,963

 

 

 

5,963

 

Restricted stock vested, net of surrendered shares

 

 

17,000

 

 

 

 

 

 

(118

)

 

 

 

 

 

 

 

 

 

 

 

 

(118

)

Stock-based compensation on vested restricted stock

 

 

 

 

 

 

 

 

1,345

 

 

 

 

 

 

 

 

 

 

 

 

1,345

 

Convertible Option debt extinguishment, net of tax

 

 

 

 

 

 

 

 

(1,840

)

 

 

 

 

 

 

 

 

 

 

 

(1,840

)

Stock issued on convertible note conversion

 

 

285,201

 

 

 

 

 

 

4,210

 

 

 

 

 

 

 

 

 

 

 

 

4,210

 

Stock buy-back

 

 

(347,740

)

 

 

 

 

 

 

 

 

 

 

 

(5,011

)

 

 

 

 

 

(5,011

)

Tax rate change

 

 

 

 

 

 

 

 

48

 

 

 

 

 

 

 

 

 

 

 

 

48

 

Dividends declared on common stock

 

 

 

 

 

 

 

 

 

 

 

(1,807

)

 

 

 

 

 

 

 

 

(1,807

)

Net income

 

 

 

 

 

 

 

 

 

 

 

6,964

 

 

 

 

 

 

 

 

 

6,964

 

Balance at March 31, 2019

 

 

29,432,217

 

 

$

3

 

 

$

328,937

 

 

$

200,907

 

 

$

(94,196

)

 

$

(564

)

 

$

435,087

 

Net unrealized change in investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,823

 

 

 

5,823

 

Stock-based compensation on vested restricted stock

 

 

 

 

 

 

 

 

1,344

 

 

 

 

 

 

 

 

 

 

 

 

1,344

 

Stock buy-back

 

 

(157,640

)

 

 

 

 

 

 

 

 

 

 

 

(2,333

)

 

 

 

 

 

(2,333

)

Dividends declared on common stock

 

 

 

 

 

 

 

 

 

 

 

(1,792

)

 

 

 

 

 

 

 

 

(1,792

)

Net income

 

 

 

 

 

 

 

 

 

 

 

721

 

 

 

 

 

 

 

 

 

721

 

Balance at June 30, 2019

 

 

29,274,577

 

 

$

3

 

 

$

330,281

 

 

$

199,836

 

 

$

(96,529

)

 

$

5,259

 

 

$

438,850

 

Net unrealized change in investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,291

 

 

 

3,291

 

Restricted stock vested, net of surrendered shares

 

 

5,647

 

 

 

 

 

 

(68

)

 

 

 

 

 

 

 

 

 

 

 

(68

)

Stock-based compensation on vested restricted stock

 

 

 

 

 

 

 

 

1,345

 

 

 

 

 

 

 

 

 

 

 

 

1,345

 

Stock buy-back

 

 

(316,383

)

 

 

 

 

 

 

 

 

 

 

 

(4,549

)

 

 

 

 

 

(4,549

)

Dividends declared on common stock

 

 

 

 

 

 

 

 

 

 

 

(1,772

)

 

 

 

 

 

 

 

 

(1,772

)

Net income

 

 

 

 

 

 

 

 

 

 

 

8,133

 

 

 

 

 

 

 

 

 

8,133

 

Balance at September 30, 2019

 

 

28,963,841

 

 

$

3

 

 

$

331,558

 

 

$

206,197

 

 

$

(101,078

)

 

$

8,550

 

 

$

445,230

 

4


 

 

 

 

Common Shares

Issued

 

 

Par Value

 

 

Additional

Paid-In

Capital

 

 

Retained

Earnings

 

 

Treasury Shares

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Total

Stockholders'

Equity

 

Balance at December 31, 2017, as previously reported

 

 

25,885,006

 

 

$

3

 

 

$

294,836

 

 

$

175,226

 

 

$

(87,185

)

 

$

(3,064

)

 

$

379,816

 

Cumulative effective of change in accounting principle (ASU 2016-01), net of tax

 

 

 

 

 

 

 

 

 

 

 

(267

)

 

 

 

 

 

267

 

 

 

 

Balance at December 31, 2017, as adjusted

 

 

25,885,006

 

 

 

3

 

 

 

294,836

 

 

 

174,959

 

 

 

(87,185

)

 

 

(2,797

)

 

 

379,816

 

Net unrealized change in investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,428

)

 

 

(4,428

)

Stock repurchase

 

 

(115,200

)

 

 

 

 

 

 

 

 

 

 

 

(2,000

)

 

 

 

 

 

(2,000

)

Stock-based compensation

 

 

 

 

 

 

 

 

1,306

 

 

 

 

 

 

 

 

 

 

 

 

1,306

 

Reclassification of income taxes upon early adoption of ASU 2018-02

 

 

 

 

 

 

 

 

 

 

 

424

 

 

 

 

 

 

(424

)

 

 

 

APIC deferred tax adj

 

 

 

 

 

 

 

 

970

 

 

 

 

 

 

 

 

 

 

 

 

970

 

Dividends declared on common stock

 

 

 

 

 

 

 

 

 

 

 

(1,601

)

 

 

 

 

 

 

 

 

(1,601

)

Net income

 

 

 

 

 

 

 

 

 

 

 

14,830

 

 

 

 

 

 

 

 

 

 

14,830

 

Balance at March 31, 2018

 

 

25,769,806

 

 

$

3

 

 

$

297,112

 

 

$

188,612

 

 

$

(89,185

)

 

$

(7,649

)

 

$

388,893

 

Stock-based compensation on vested restricted stock

 

 

 

 

 

 

 

 

1,306

 

 

 

 

 

 

 

 

 

 

 

 

1,306

 

Convertible Option debt extinguishment, net of tax

 

 

 

 

 

 

 

 

(4,235

)

 

 

 

 

 

 

 

 

 

 

 

(4,235

)

Dividends declared on common stock

 

 

 

 

 

 

 

 

 

 

 

(1,593

)

 

 

 

 

 

 

 

 

(1,593

)

Net unrealized change in investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(699

)

 

 

(699

)

Net income

 

 

 

 

 

 

 

 

 

 

 

2,408

 

 

 

 

 

 

 

 

 

2,408

 

Balance at June 30, 2018

 

 

25,769,806

 

 

$

3

 

 

$

294,183

 

 

$

189,427

 

 

$

(89,185

)

 

$

(8,348

)

 

$

386,080

 

Net unrealized change in investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,235

)

 

 

(1,235

)

Stock-based compensation on vested restricted stock

 

 

 

 

 

 

 

 

1,317

 

 

 

 

 

 

 

 

 

 

 

 

1,317

 

Dividends declared on common stock

 

 

 

 

 

 

 

 

 

 

 

(1,595

)

 

 

 

 

 

 

 

 

(1,595

)

Net income

 

 

 

 

 

 

 

 

 

 

 

5,989

 

 

 

 

 

 

 

 

 

5,989

 

Balance at September 30, 2018

 

 

25,769,806

 

 

$

3

 

 

$

295,500

 

 

$

193,821

 

 

$

(89,185

)

 

$

(9,583

)

 

$

390,556

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

5


 

HERITAGE INSURANCE HOLDINGS, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Amounts in thousands)

 

 

 

For the Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net income

 

$

15,818

 

 

$

23,227

 

Adjustments to reconcile net income to net cash  provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

4,034

 

 

 

3,929

 

Bond amortization and accretion

 

 

3,896

 

 

 

4,935

 

Amortization of original issuance discount on debt

 

 

1,073

 

 

 

3,188

 

Depreciation and amortization

 

 

8,274

 

 

 

21,408

 

Net realized losses

 

 

291