NASDAQ$HALL

Hallmark Financial Services Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Hallmark Financial reported a net loss due to a charge for the loss portfolio transfer reinsurance contract, unfavorable prior year net loss reserve development, and net catastrophe losses.

Hallmark Financial Services, Inc. reported a net loss of $28.0 million for the third quarter of 2020, compared to a net income of $5.3 million for the same period in 2019. The decline was primarily driven by a $21.7 million charge for the loss portfolio transfer reinsurance contract, unfavorable prior year net loss reserve development of $13.9 million, and net catastrophe losses of $9.6 million.

  • Gross premiums written decreased by 12% to $196.5 million compared to the same period in 2019.
  • Net premiums written decreased by 9% to $116.1 million compared to the same period in 2019.
  • Net premiums earned increased by 6% to $119.6 million compared to the same period in 2019.
  • The company had a pre-tax loss of $37.3 million, compared to a pre-tax income of $6.7 million in the same period of 2019.

Headline financials

Total Revenue

$123M

Previous: $118M+4.1%
EPS (adj)

-$15.40

Previous: $2.90-631.0%
Net Combined Ratio

131.5%

No prior period
Capital Expenditures

-$1.28M

Previous: -$3.69M+65.4%
Free Cash Flow

-$64.2M

Previous: $19.2M-434.0%
Net Income

-$28M

Previous: $5.29M-629.7%
Operating Income

-$107M

Previous: $14.5M-840.1%
Gross Profit

-$22.8M

Previous: $49.6M-146.0%
Cash & Equivalents

$187M

Previous: $64M+191.5%
Total Assets

$1.5B

Previous: $1.46B+2.3%
Stock-Based Comp

$154K

Previous: $317K-51.4%

Revenue & EPS history

Hallmark Financial · Revenue · Quarterly

$123M

Q3 2020+4.1%vs Q3 2019
Beat estimate in 3 of 9 quarters(33%)
ActualEstimate

Revenue by segment

Hallmark Financial · $14.5M total across 2 segments · Q2 2022

  • Personal Segment
    $17M-10.8%
  • Corporate
    -$2.51M-185.3%

Forward guidance

Forward-looking statements in this release are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that actual results may differ materially from such forward-looking statements.

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 Q3 2020

Historical avgQ3 2020

-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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