NASDAQ$HALL

Hallmark Financial Services Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Hallmark Financial reported a net loss and decreased premiums written compared to the same period last year.

Hallmark Financial Services, Inc. reported a net loss of $0.5 million for the second quarter of 2021, compared to a net income of $6.7 million for the same period in 2020. The net combined ratio was 105.7%, compared to 98.4% in the prior year. Gross premiums written decreased by 8%, and net premiums written decreased by 18%.

  • Net loss of $0.5 million, or $0.03 per share, compared to net income of $6.7 million, or $0.37 per share, for the same period of 2020.
  • Net combined ratio of 105.7% compared to 98.4% for the same period the prior year.
  • Specialty Commercial Segment net combined ratio of 97.2% compared to 96.9% for the same period the prior year.
  • Substantial rate increases achieved, particularly in the Specialty Commercial Segment, with increases averaging 12% for the quarter.

Headline financials

Total Revenue

$106M

Previous: $133M-19.9%
EPS (adj)

-$0.30

Previous: $3.70-108.1%
Net Combined Ratio

105.7%

No prior period
Capital Expenditures

-$1.33M

Previous: -$1.12M-18.4%
Free Cash Flow

$27.6M

Previous: -$8.08M+441.1%
Net Income

-$467K

Previous: $6.7M-107.0%
Operating Income

-$56M

Previous: -$52.2M-7.2%
Gross Profit

$19.3M

Previous: $26.9M-28.1%
Cash & Equivalents

$327M

Previous: $127M+157.9%
Total Assets

$1.51B

Previous: $1.43B+5.0%
Stock-Based Comp

$57K

Previous: $11K+418.2%

Revenue & EPS history

Hallmark Financial · Revenue · Quarterly

$106M

Q2 2021-19.9%vs Q2 2020
Beat estimate in 3 of 9 quarters(33%)
ActualEstimate

Revenue by segment

Hallmark Financial · $22.1M total across 2 segments · Q2 2021

  • Personal Segment
    $19.1M
  • Corporate
    $2.94M

Forward guidance

Forward-looking statements involve risks and uncertainties including, but not limited to, continued acceptance of the Company’s products and services in the marketplace, competitive factors, interest rate trends, general economic conditions, the availability of financing, underwriting loss experience and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-2.1%

Avg return

Earnings day

-7.2%

Avg return

5 days after

-8.6%

Avg return

30 days after

45%

25 / 56 earnings

Positive

+11.8%

Q3 2021

Best reaction

-36.0%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2023+6.0%+3.3%-26.6%
Q2 2023-13.0%-33.8%-57.8%
Q1 2023+1.6%+0.9%-9.8%
Q4 2022-26.2%-26.2%-33.8%
Q3 2022-23.5%-25.9%-51.1%
Q2 2022-36.0%-46.6%-50.2%
Q1 2022-0.5%+2.2%-8.0%
Q4 2021-5.7%-4.7%-3.4%
Q3 2021+11.8%+19.4%+21.6%
Q2 2021-21.1%-19.5%-20.7%
Q1 2021-0.8%-5.5%+0.0%
Q4 2020-5.5%-88.7%-90.5%
Q3 2020-3.2%+6.7%+23.0%
Q1 2020-4.8%-9.9%-0.3%
Q2 2020-2.4%-9.5%-14.3%
Q4 2019-2.4%-9.5%-14.3%
Q3 2019+4.8%+9.8%+7.5%
Q2 2019+2.1%+5.2%+14.1%
Q1 2019+0.9%+4.5%+10.4%
Q4 2018-1.7%-1.4%+5.4%
Q3 2018+0.6%-0.2%+0.2%
Q2 2018+1.1%+1.1%+4.9%
Q1 2018-0.6%+2.1%+15.1%
Q4 2017-2.2%-7.4%+3.6%
Q3 2017+3.9%+7.2%+3.4%
Q2 2017-2.5%-4.1%-8.1%
Q1 2017+0.2%-3.4%-4.0%
Q4 2016-0.3%+0.0%-0.5%
Q3 2016+4.3%+16.0%+16.0%
Q2 2016+0.4%+2.6%+10.2%
Q1 2016-0.8%
Q4 2015-0.9%
Q3 2015+3.1%
Q2 2015+3.3%
Q1 2015+1.5%
Q4 2014+2.2%
Q3 2014-3.2%
Q2 2014+0.8%
Q1 2014+1.7%
Q4 2013+1.0%
Q3 2013+4.0%
Q2 2013-2.4%
Q1 2013-2.7%
Q4 2012-5.1%
Q3 2012-2.1%
Q2 2012-1.4%
Q1 2011+1.2%
Q1 2012-2.3%
Q4 2011+2.9%
Q4 2009+2.9%
Q3 2011+0.3%
Q3 2010+0.3%
Q2 2011-0.8%
Q4 2010-0.8%
Q2 2010-0.8%
Q1 2010-2.7%

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