NYSE$HRTG

Heritage Insurance Holdings · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported a net loss due to a non-cash goodwill impairment charge, but adjusted net income increased driven by an improved combined ratio.

Heritage Insurance Holdings reported a net loss of $87.9 million for Q2 2022, primarily due to a $90.8 million non-cash goodwill impairment charge. However, adjusted net income improved to $2.9 million, driven by an improved net combined ratio of 99.4%. The company's exposure management efforts resulted in a reduction of policies in Florida and increased diversification outside of Florida.

  • Net loss of $87.9 million, or $3.32 per diluted share, due to a $90.8 million non-cash goodwill impairment charge.
  • Adjusted net income of $2.9 million, or $0.11 per diluted share, driven by an improvement in the net combined ratio to 99.4%.
  • Net loss ratio decreased by 4.7 points to 64.1%, driven by higher net earned premium.
  • Premiums-in-force increased by 3.4% year-over-year to $1.2 billion, driven by higher average premium per policy.

Headline financials

Total Revenue

$164M

Previous: $150M+9.0%
EPS (adj)

$0.11

Previous: -$0.14+178.6%
Net expense ratio

35.3%

No prior period
Net combined ratio

99.4%

No prior period
Premiums in force

$1.2B

No prior period
Capital Expenditures

-$1.39M

Previous: -$747K-85.4%
Free Cash Flow

-$89.3M

Previous: -$4.7M-1800.2%
Net Income

-$87.9M

Previous: -$3.95M-2124.5%
Operating Income

-$85.6M

Previous: -$3.99M-2044.2%
Gross Profit

$21.2M

Previous: $6.73M+215.7%
Cash & Equivalents

$291M

Previous: $447M-34.9%
Total Assets

$2.03B

Previous: $2.35B-13.7%
Stock-Based Comp

$503K

Previous: $287K+75.3%

Revenue & EPS history

Heritage Insurance · Revenue · Quarterly

$164M

Q2 2022+9%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Heritage is cautiously optimistic about the impact of Florida legislative actions on its results and the claims environment but believes more legislative action is needed.

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 2022

Historical avgQ2 2022

+3.3%

Avg return

Earnings day

+7.4%

Avg return

5 days after

+9.5%

Avg return

30 days after

66%

35 / 53 earnings

Positive

+37.8%

Q2 2022

Best reaction

-21.9%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-20.0%-21.6%-21.0%
Q4 2025-0.1%+5.0%-1.0%
Q3 2025+12.7%+19.3%+8.0%
Q1 2025+23.1%+27.0%+26.3%
Q4 2024+1.0%+7.7%+36.6%
Q3 2024+6.6%+13.4%+11.2%
Q2 2024+2.1%+42.5%+124.4%
Q1 2024-21.9%-19.5%-16.7%
Q4 2023+28.2%+17.6%+41.8%
Q3 2023+13.5%+24.5%+43.9%
Q2 2023+8.0%+16.2%-0.2%
Q1 2023+10.6%+34.4%+41.2%
Q4 2022+36.8%+43.2%+15.8%
Q3 2022-20.0%-15.4%-8.0%
Q2 2022+37.8%+24.4%+6.7%
Q1 2022-9.5%-22.1%-11.2%
Q4 2021+16.9%+14.7%+17.5%
Q3 2021-3.7%-6.5%-5.6%
Q2 2021+3.4%+6.9%-4.7%
Q1 2021-4.4%+0.3%-7.9%
Q4 2020+1.7%+10.4%+9.6%
Q3 2020+3.1%-4.0%+9.0%
Q2 2020+7.2%+14.2%+10.0%
Q1 2020+3.4%+11.0%+19.2%
Q4 2019-6.0%-1.1%-15.2%
Q3 2019+12.0%+5.8%-0.2%
Q2 2019+3.5%+2.5%-2.5%
Q1 2019+4.2%+9.7%+15.1%
Q4 2018+1.3%-7.6%-3.0%
Q3 2018+6.7%+13.8%+13.9%
Q2 2018-9.6%-9.7%-11.8%
Q1 2018+5.9%+12.2%+10.7%
Q4 2017+2.9%+2.1%-6.3%
Q3 2017+2.6%+5.2%+12.2%
Q2 2017+6.1%-8.1%-24.4%
Q1 2017+7.9%+3.5%+7.3%
Q4 2016-8.9%-12.0%-19.4%
Q3 2016+11.6%+19.8%+34.7%
Q2 2016+13.8%+10.6%+13.8%
Q1 2016-2.6%
Q4 2015-11.7%
Q3 2015+4.9%
Q2 2015-13.4%
Q1 2014-0.9%
Q1 2015+1.4%
Q4 2012-1.1%
Q3 2013-1.1%
Q1 2013-1.1%
Q4 2014+0.8%
Q3 2014+5.4%
Q2 2013+2.1%
Q4 2013+2.1%
Q2 2014-0.2%

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