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| | Business Summary: AssuranceAmerica Corporation, through its subsidiaries, underwrites and distributes primarily non-standard personal automobile insurance products to individuals in Georgia, South Carolina, Florida, Louisiana, Texas, Alabama, Arizona, Indiana, Mississippi, and Virginia. | | | Address
RiverEdge One
Suite 600
5500 Interstate North Parkway
Atlanta
, GA 30328
Phone: 770-925-0200
Fax: 770-952-0258
Website: http://www.assuranceamerica.com
| | | Transfer Agent |
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Fidelity Transfer Co.
| Employees: 263
ShareHolders: 768 | Founded: 1969
Domicile: Nevada | | | |
| | AssuranceAmerica Corporation, through its subsidiaries, underwrites and distributes primarily non-standard personal automobile insurance products to individuals in Georgia, South Carolina, Florida, Louisiana, Texas, Alabama, Arizona, Indiana, Mississippi, and Virginia. Its non-standard insurance products provide customers with coverage for the minimum required statutory limits for bodily injury and property damage liability arising out of the operation of a motor vehicle. The company also offers insurance coverage that affords protection for collision and physical damage to the insureds' motor vehicles, bodily injury, and property damage caused by uninsured motorists, medical payments, towing and labor, and accidental death and dismemberment. In addition, it provides accounting, product management, legal, policyholder administration, and claims services. The company is headquartered in Atlanta, Georgia. | | History: INCORPORATED in Nevada Apr. 7, 1986, as Auric Metals Corp.; and on June 5, 1986, merged a Utah corporation of the same name (incorporated May 9, 1969). Name changed to Brainworks Ventures, Inc. Nov. 13, 2000, and to AssuranceAmerica Corp. July 2, 2003.
April 1, 2003, acquired AssuranceAmerica Corp., a Georgia corporation (AssuranceAmerica Georgia). Shareholders of AssuranceAmerica Georgia received apx. 43,000,000 Common shares of the company, including shares received upon subsequent conversion of Series A Convertible Preferred stock of AssuranceAmerica Georgia into Common stock of the company.
August 3, 2004, acquired substantially all of the assets of Thomas-Cook Holding Company (TCHC). As consideration, the company paid TCHC $462,000 in cash, issued TCHC a promissory note in the amount of $1,078,000, and issued TCHC 1,320,000 Common shares of the company. | | | | Subsidiaries: |
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Acquisition Sub, Inc.
AssuranceAmerica Capital Trust I
AssuranceAmerica Claims Services, LLC
AssuranceAmerica Corporation
AssuranceAmerica Insurance Company
AssuranceAmerica Managing General Agency of Alabama Corporation
AssuranceAmerica Managing General Agency, LLC
TrustWay Insurance Agencies, LLC
| | | | | | Capital Expenditures, thousand. US Dollars |
|---|
| Year | Amount | | 2009 | 304 |
| | | | | | | |
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Management
|
|---|
| Officers | Position |
|---|
| Guy W. Millner | Chairman & Chief Executive Officer | | Joseph J. Skruck | President & Chief Operating Officer | | John M. Mongelli | SR VP, Chief Financial Officer & Chief Accounting Officer | | Mark H. Hain | Secretary, Exec VP & General Counsel | | Al Yeager | SR VP | | Gregory Dean Woods | Controller | | Renee A. Pinczes | Investor Relations Contact |
| | Directors |
|---|
| John E. Cay, III | | Quill O. Healey | | Guy W. Millner | | Donald Ratajczak | | William R. Reed, Jr. | | Kaaren J. Street | | Sam Zamarripa | | | |
| | | | Capitalization as of 12/31/2009: | | | | | Authorized Shares | Outstanding Shares |
|---|
| Common $0.01 par | 120,000,000 | 65,144,357 | | Preferred $0.01 par | 5,000,000 | None |
| | | | DEBT: $5,755,851. | | | | Common $0.01 par | | | |
Stockholders:
03/08/2010,
768.
| |
Transfer Agent: Fidelity Transfer Co.
Salt Lake City
, UT | | | | OTC Bulletin Board( Primary): ASAM | | | | Exchange | Year | High | Low |
|---|
| OTC Bulletin Board | 2009 | 0.5000 | 0.1000 | | OTC Bulletin Board | 2008 | 0.6600 | 0.1500 | | OTC Bulletin Board | 2007 | 1.7500 | 0.3600 | | OTC Bulletin Board | 2006 | 2.0000 | 0.7800 | | OTC Bulletin Board | 2005 | 1.0100 | 0.5500 | | OTC Bulletin Board | 2004 | 1.6000 | 0.5100 | | OTC Bulletin Board | 2003 | 2.5000 | 0.2000 |
|
| | | | DIVIDENDS: Common $0.01 par: None. | | | | | |
| | Annual Report |
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| | | Income Statement | |
| 2009 | 2008 |
|---|
| REVENUES |
|
| | Net Premiums Earned | 34,423,810 | 28,767,730 | | Net Investments Income | 670,244 | 670,148 | | Net Investment Losses on Securities | (362,030) | (388,226) | | Other Fee Income | 341,549 | 307,828 | | Managing General Agent Fees | 10,277,410 | 12,505,160 | | Commission Income | 21,641,250 | 21,375,130 | | Total revenues | 66,992,240 | 63,237,765 | | EXPENSES |
|
| | Losses and Loss Adjustment Expenses | (25,248,450) | (23,732,730) | | Selling, General and Administrative | (38,871,540) | (38,688,260) | | Stock Option Expense | (333,890) | (49,047) | | Depreciation and Amortization Expenses | (1,183,299) | (1,287,614) | | Goodwill Impairments | - | (3,374,057) | | Interest Expense | (458,500) | (717,829) | | Earnings before Taxes | 896,562 | (4,611,763) | | TAXES AND OTHER EXPENSES |
|
| | Provision for Income Tax | (448,815) | 1,396,875 | | Net Income (Loss) | 447,747 | (3,214,888) | | SUPPLEMENTARY INFO |
|
| | Basic EPS - Continuing Operations | 0.01 | (0.05) | | Diluted EPS - Continuing Operations | 0.01 | (0.05) |
| | | | Balance Sheet | |
| 2009 | 2008 |
|---|
| ASSETS |
|
| | Cash and Cash Equivalents | 6,253,643 | 8,287,149 | | Short-term Investment, Available-for-sale | 365,717 | 652,480 | | Receivable from Insured | 35,173,720 | 31,162,660 | | Reinsurance Recoverables | 43,809,120 | 38,987,130 | | Other Receivables | 1,766,762 | 1,655,375 | | Prepaid Expenses | 510,558 | 608,861 | | Prepaid Reinsurance Premiums | 25,098,050 | 22,916,150 | | Cash-restricted | 1,800,000 | - | | Prepaid Income Taxes | 249,452 | 238,443 | | Property and Equipment | 2,012,963 | 2,530,352 | | Long-term Investments, Held to Maturity At | 1,015,374 | - | | Marketable Equity Securities, At Fair Value | 1,918,841 | 1,776,671 | | Other Securities | 155,000 | 155,000 | | Long-term Investments, At Fair Value | 7,518,144 | 8,194,572 | | Investment Income Due & Accrued | 180,719 | 96,186 | | Intangibles | 7,509,934 | 7,780,959 | | Deferred Tax Assets | 2,909,229 | 3,699,994 | | Deferred Acquisition Costs | 2,457,647 | 2,321,517 | | Other Assets | 335,526 | 348,472 | | Security Deposit | 105,315 | 105,060 | | Total Assets | 141,145,717 | 131,517,030 | | LIABILITIES |
|
| | Unearned Premiums | 35,916,160 | 32,907,710 | | Reinsurance Payable | 28,523,280 | 26,416,490 | | Funds Withheld from Reinsurers | 1,875,000 | 75,000 | | Accounts Payable and Accrued Expenses | 8,551,370 | 7,496,998 | | Revolving Line of Credit | 1,500,000 | - | | Provisional Commission Reserve | 3,599,289 | 3,361,045 | | Unpaid Losses and Loss Adjustment Expense | 41,972,980 | 42,580,700 | | Notes Payable and Related Party Debt | 774,001 | 1,720,108 | | Trust Preferred Securities | 4,981,850 | 4,975,185 | | SHAREHOLDERS' EQUITY |
|
| | Common Stock - Par Value | 651,443 | 649,538 | | Additional Paid in Capital | 17,363,620 | 16,911,640 | | Accumulated Deficit | (4,440,473) | (4,888,220) | | Net Unrealized Losses on Investment Securities, Net of Taxes | (122,806) | (689,162) | | Total Shareholders Equity | 13,451,784 | 11,983,791 | | Total Liabilities & Shareholders Equity | 141,145,717 | 131,517,030 |
| | | |
| | Interim Report
|
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| | | Data Not Available | | | | | | | | | |
| | Pro Forma Report
|
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| | | Data Not Available | | | | | | | | | |
| | Quarterly Report Information
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| | | Quarterly Revenue, US$ |
|---|
| Year | Quarter | Revenue | | 2010 |
1 | 18,180,000 | | 2009 |
1 | 17,770,000 | | 2009 |
2 | 16,410,000 | | 2009 |
3 | 17,050,000 | | 2009 |
4 | 15,760,000 | | 2009 |
Full Year
| 66,990,000 | | 2008 |
1 | 16,760,000 | | 2008 |
2 | 15,540,000 | | 2008 |
3 | 15,640,000 | | 2008 |
4 | 15,290,000 | | 2008 |
Full Year
| 63,240,000 | | 2007 |
1 | 15,170,000 | | 2007 |
2 | 14,490,000 | | 2007 |
3 | 14,410,000 | | 2007 |
4 | 14,300,000 | | 2007 |
Full Year
| 58,380,000 | | 2006 |
1 | 15,380,000 | | 2006 |
2 | 12,990,000 | | 2006 |
3 | 13,130,000 | | 2006 |
4 | 12,230,000 | | 2006 |
Full Year
| 53,720,000 | | 2005 |
1 | 7,810,000 | | 2005 |
2 | 8,140,000 | | 2005 |
3 | 9,920,000 | | 2005 |
4 | 11,250,000 | | 2005 |
Full Year
| 37,120,000 |
| | | | | | Quarterly Net Income, US$ |
|---|
| Year | Quarter | Revenue | | 2010 |
1 | 840,000 | | 2009 |
1 | 820,000 | | 2009 |
2 | 180,000 | | 2009 |
3 | 230,000 | | 2009 |
4 | (790,000) | | 2009 |
Full Year
| 450,000 | | 2008 |
1 | 380,000 | | 2008 |
2 | (150,000) | | 2008 |
3 | (620,000) | | 2008 |
4 | (2,830,000) | | 2008 |
Full Year
| (3,210,000) | | 2007 |
1 | 640,000 | | 2007 |
2 | 120,000 | | 2007 |
3 | (40,000) | | 2007 |
4 | (440,000) | | 2007 |
Full Year
| 280,000 | | 2006 |
1 | 800,000 | | 2006 |
2 | 380,000 | | 2006 |
3 | 780,000 | | 2006 |
Full Year
| 4,731,600 | | 2005 |
2 | 320,000 | | 2005 |
3 | 770,000 | | 2005 |
Full Year
| 2,329,600 |
| | | | | | Quarterly EPS, US$ |
|---|
| Year | Quarter | Revenue | | 2010 |
1 | .01 | | 2009 |
1 | .01 | | 2009 |
2 | Nil | | 2009 |
3 | Nil | | 2009 |
4 | (.01) | | 2009 |
Full Year
| .01 | | 2008 |
1 | .01 | | 2008 |
2 | Nil | | 2008 |
3 | (.01) | | 2008 |
4 | (.04) | | 2008 |
Full Year
| (.05) | | 2007 |
1 | .01 | | 2007 |
2 | Nil | | 2007 |
3 | Nil | | 2007 |
4 | (.01) | | 2007 |
Full Year
| Nil | | 2006 |
1 | .01 | | 2006 |
2 | Nil | | 2006 |
3 | .01 | | 2006 |
4 | .05 | | 2006 |
Full Year
| .08 | | 2005 |
1 | .01 | | 2005 |
2 | Nil | | 2005 |
3 | .01 | | 2005 |
4 | .01 | | 2005 |
Full Year
| .03 |
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