NASDAQ$HALL

Hallmark Financial Services Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Hallmark Financial Services' third quarter results for 2021 were announced, revealing a return to profitability after a loss in the same period last year.

Hallmark Financial Services reported a net income of $3.4 million, or $0.19 per diluted share, for the third quarter of 2021, compared to a net loss of $28.4 million, or $1.56 per diluted share, for the same period in 2020. The net combined ratio improved to 95.9% from 132.7% in the prior year. Pre-tax income was $4.4 million, a significant improvement from the pre-tax loss of $37.8 million in Q3 2020.

  • Pre-tax income was $4.4 million, compared to a pre-tax loss of $37.8 million in the same period of 2020.
  • Net income was $3.4 million, or $0.19 per diluted share, compared to a net loss of $28.4 million, or $1.56 per diluted share, for the same period of 2020.
  • Net combined ratio was 95.9%, compared to 132.7% for the same period the prior year.
  • Net catastrophe losses were $2.8 million, or 3.0 points of the net combined ratio, compared to $9.6 million, or 8.2 points of the net combined ratio for the same period the prior year.

Headline financials

Total Revenue

$97.4M

Previous: $123M-20.9%
EPS (adj)

$1.50

Previous: -$15.40+109.7%
Net Loss Ratio

67.5%

No prior period
Net Combined Ratio

95.9%

Previous: 131.5%-27.1%
Capital Expenditures

-$1.63M

Previous: -$1.28M-27.8%
Free Cash Flow

$45.7M

Previous: -$64.2M+171.2%
Net Income

$3.45M

Previous: -$28M+112.3%
Operating Income

-$53.7M

Previous: -$107M+50.0%
Gross Profit

$22.7M

Previous: -$22.8M+199.5%
Cash & Equivalents

$326M

Previous: $187M+74.5%
Total Assets

$1.52B

Previous: $1.5B+1.5%
Stock-Based Comp

$4K

Previous: $154K-97.4%

Revenue & EPS history

Hallmark Financial · Revenue · Quarterly

$97.4M

Q3 2021-20.9%vs Q3 2020
Beat estimate in 3 of 9 quarters(33%)
ActualEstimate

Revenue by segment

Hallmark Financial · $16.7M total across 2 segments · Q3 2021

  • Personal Segment
    $18.3M
  • Corporate
    -$1.62M

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. 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 Q3 2021

Historical avgQ3 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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