2013 Q2 Form 10-Q Financial Statement

#000006499613000012 Filed on July 31, 2013

View on sec.gov

Income Statement

Concept 2013 Q2 2012 Q2
Revenue $642.6M $647.7M
YoY Change -0.79% -8.33%
Cost Of Revenue $486.9M $497.3M
YoY Change -2.08% 10.17%
Gross Profit $155.7M $150.5M
YoY Change 3.46% -41.05%
Gross Profit Margin 24.22% 23.23%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $126.4M $117.7M
YoY Change 7.36% -4.15%
% of Gross Profit 81.2% 78.25%
Operating Expenses $667.3M $666.2M
YoY Change 0.17% 5.86%
Operating Profit -$511.6M -$515.7M
YoY Change -0.8% 37.87%
Interest Expense $212.0K $378.0K
YoY Change -43.92% -77.35%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$24.96M -$18.85M
YoY Change 32.39% -124.93%
Income Tax -$15.70M -$13.59M
% Of Pretax Income
Net Earnings -$9.264M -$5.264M
YoY Change 75.99% -109.19%
Net Earnings / Revenue -1.44% -0.81%
Basic Earnings Per Share -$0.17 -$0.10
Diluted Earnings Per Share -$0.17 -$0.10
COMMON SHARES
Basic Shares Outstanding 54.94M shares 54.90M shares
Diluted Shares Outstanding 54.94M shares 54.90M shares

Balance Sheet

Concept 2013 Q2 2012 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $17.80M $33.10M
YoY Change -46.22% 192.92%
LONG-TERM ASSETS
Property, Plant & Equipment $154.9M $168.7M
YoY Change -8.19% -8.86%
Goodwill $42.80M $42.85M
YoY Change -0.13%
Intangibles $44.59M $50.65M
YoY Change -11.96%
Long-Term Investments $3.176B $3.113B
YoY Change 2.03% -0.14%
Other Assets $17.70M $0.00
YoY Change -100.0%
Total Long-Term Assets $4.214B $4.087B
YoY Change 3.1% -3.49%
TOTAL ASSETS
Total Short-Term Assets $17.80M $33.10M
Total Long-Term Assets $4.214B $4.087B
Total Assets $4.232B $4.120B
YoY Change 2.7% -2.97%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $116.6M $100.2M
YoY Change 16.37% -7.65%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $119.0M $100.2M
YoY Change 18.76% -19.45%
LONG-TERM LIABILITIES
Long-Term Debt $140.0M $140.0M
YoY Change 0.0% -46.95%
Other Long-Term Liabilities $193.8M $157.8M
YoY Change 22.81% -14.43%
Total Long-Term Liabilities $333.8M $297.8M
YoY Change 12.09% -33.57%
TOTAL LIABILITIES
Total Short-Term Liabilities $119.0M $100.2M
Total Long-Term Liabilities $333.8M $297.8M
Total Liabilities $2.398B $2.260B
YoY Change 6.12% -5.88%
SHAREHOLDERS EQUITY
Retained Earnings $1.753B $1.781B
YoY Change -1.6%
Common Stock $80.86M $79.30M
YoY Change 1.96%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.834B $1.861B
YoY Change
Total Liabilities & Shareholders Equity $4.232B $4.120B
YoY Change 2.7% -2.97%

Cashflow Statement

Concept 2013 Q2 2012 Q2
OPERATING ACTIVITIES
Net Income -$9.264M -$5.264M
YoY Change 75.99% -109.19%
Depreciation, Depletion And Amortization $126.4M $117.7M
YoY Change 7.36% -4.15%
Cash From Operating Activities $38.30M $14.70M
YoY Change 160.54% -74.43%
INVESTING ACTIVITIES
Capital Expenditures -$3.900M -$3.600M
YoY Change 8.33% 0.0%
Acquisitions
YoY Change
Other Investing Activities -$7.000M -$23.00M
YoY Change -69.57% -54.37%
Cash From Investing Activities -$10.90M -$26.50M
YoY Change -58.87% -50.93%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -32.10M -32.40M
YoY Change -0.93% -0.92%
NET CHANGE
Cash From Operating Activities 38.30M 14.70M
Cash From Investing Activities -10.90M -26.50M
Cash From Financing Activities -32.10M -32.40M
Net Change In Cash -4.700M -44.20M
YoY Change -89.37% 51.37%
FREE CASH FLOW
Cash From Operating Activities $38.30M $14.70M
Capital Expenditures -$3.900M -$3.600M
Free Cash Flow $42.20M $18.30M
YoY Change 130.6% -70.05%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Recently Issued Accounting Standards</font></div><div style="line-height:120%;padding-top:6px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2013, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued a new standard that requires entities to disclose additional information about items reclassified out of accumulated other comprehensive income in their financial statements. Entities are required to include information about changes in accumulated other comprehensive income balances by component and additional information about significant items reclassified out of accumulated other comprehensive income in their interim reporting periods. The Company adopted the new standard which became effective for the interim period ended March 31, 2013. The adoption of the new standard did not have any impact on the Company&#8217;s consolidated financial statements.</font></div></div>
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CY2013Q2 us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
54015000 USD
CY2012Q2 us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
51203000 USD
us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
112078000 USD
us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
104128000 USD
CY2013Q2 us-gaap Other Income
OtherIncome
2521000 USD
CY2012Q2 us-gaap Other Income
OtherIncome
2544000 USD
us-gaap Other Income
OtherIncome
4854000 USD
us-gaap Other Income
OtherIncome
5258000 USD
CY2012Q4 us-gaap Other Liabilities
OtherLiabilities
153972000 USD
CY2013Q2 us-gaap Other Liabilities
OtherLiabilities
193848000 USD
CY2012Q4 us-gaap Other Receivables
OtherReceivables
17756000 USD
CY2013Q2 us-gaap Other Receivables
OtherReceivables
17846000 USD
us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
-1610000 USD
us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
-1413000 USD
us-gaap Payments Of Dividends Common Stock
PaymentsOfDividendsCommonStock
66973000 USD
us-gaap Payments Of Dividends Common Stock
PaymentsOfDividendsCommonStock
67303000 USD
us-gaap Payments To Acquire Available For Sale Securities Debt
PaymentsToAcquireAvailableForSaleSecuritiesDebt
430984000 USD
us-gaap Payments To Acquire Available For Sale Securities Debt
PaymentsToAcquireAvailableForSaleSecuritiesDebt
260626000 USD
us-gaap Payments To Acquire Available For Sale Securities Equity
PaymentsToAcquireAvailableForSaleSecuritiesEquity
144919000 USD
us-gaap Payments To Acquire Available For Sale Securities Equity
PaymentsToAcquireAvailableForSaleSecuritiesEquity
326896000 USD
CY2012Q2 us-gaap Policyholder Benefits And Claims Incurred Net
PolicyholderBenefitsAndClaimsIncurredNet
497251000 USD
CY2013Q2 us-gaap Policyholder Benefits And Claims Incurred Net
PolicyholderBenefitsAndClaimsIncurredNet
486906000 USD
us-gaap Policyholder Benefits And Claims Incurred Net
PolicyholderBenefitsAndClaimsIncurredNet
953966000 USD
us-gaap Policyholder Benefits And Claims Incurred Net
PolicyholderBenefitsAndClaimsIncurredNet
947167000 USD
CY2013Q2 us-gaap Premiums And Other Receivables Net
PremiumsAndOtherReceivablesNet
407690000 USD
CY2012Q4 us-gaap Premiums And Other Receivables Net
PremiumsAndOtherReceivablesNet
394252000 USD
CY2012Q2 us-gaap Premiums Earned Net Property And Casualty
PremiumsEarnedNetPropertyAndCasualty
637247000 USD
CY2013Q2 us-gaap Premiums Earned Net Property And Casualty
PremiumsEarnedNetPropertyAndCasualty
675787000 USD
us-gaap Premiums Earned Net Property And Casualty
PremiumsEarnedNetPropertyAndCasualty
1273059000 USD
us-gaap Premiums Earned Net Property And Casualty
PremiumsEarnedNetPropertyAndCasualty
1338382000 USD
CY2013Q2 us-gaap Premiums Receivable At Carrying Value
PremiumsReceivableAtCarryingValue
356061000 USD
CY2012Q4 us-gaap Premiums Receivable At Carrying Value
PremiumsReceivableAtCarryingValue
345387000 USD
us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
163734000 USD
us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
189772000 USD
us-gaap Proceeds From Sale Of Available For Sale Securities Debt
ProceedsFromSaleOfAvailableForSaleSecuritiesDebt
117076000 USD
us-gaap Proceeds From Sale Of Available For Sale Securities Debt
ProceedsFromSaleOfAvailableForSaleSecuritiesDebt
56117000 USD
us-gaap Proceeds From Sale Of Available For Sale Securities Equity
ProceedsFromSaleOfAvailableForSaleSecuritiesEquity
75024000 USD
us-gaap Proceeds From Sale Of Available For Sale Securities Equity
ProceedsFromSaleOfAvailableForSaleSecuritiesEquity
322250000 USD
us-gaap Proceeds From Sale Of Productive Assets
ProceedsFromSaleOfProductiveAssets
453000 USD
us-gaap Proceeds From Sale Of Productive Assets
ProceedsFromSaleOfProductiveAssets
1393000 USD
us-gaap Proceeds From Sale Of Short Term Investments
ProceedsFromSaleOfShortTermInvestments
128282000 USD
us-gaap Proceeds From Sale Of Short Term Investments
ProceedsFromSaleOfShortTermInvestments
56301000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
1324000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
2098000 USD
CY2012Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
161940000 USD
CY2013Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
154884000 USD
CY2013Q2 us-gaap Realized Investment Gains Losses
RealizedInvestmentGainsLosses
-67415000 USD
CY2012Q2 us-gaap Realized Investment Gains Losses
RealizedInvestmentGainsLosses
-23759000 USD
us-gaap Realized Investment Gains Losses
RealizedInvestmentGainsLosses
28904000 USD
us-gaap Realized Investment Gains Losses
RealizedInvestmentGainsLosses
-23365000 USD
CY2013Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
1753011000 USD
CY2012Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
1763117000 USD
CY2012Q2 us-gaap Revenues
Revenues
647705000 USD
CY2013Q2 us-gaap Revenues
Revenues
642567000 USD
us-gaap Revenues
Revenues
1370380000 USD
us-gaap Revenues
Revenues
1382720000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
-85000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
-100000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod
84500 shares
CY2011 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod
80000 shares
CY2012 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod
89000 shares
CY2013Q2 us-gaap Short Term Investments
ShortTermInvestments
165520000 USD
CY2012Q4 us-gaap Short Term Investments
ShortTermInvestments
294653000 USD
CY2013Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1833868000 USD
CY2012Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1842497000 USD
CY2012Q4 us-gaap Trading Securities Debt
TradingSecuritiesDebt
2408354000 USD
CY2013Q2 us-gaap Trading Securities Debt
TradingSecuritiesDebt
2482052000 USD
CY2013Q2 us-gaap Trading Securities Equity
TradingSecuritiesEquity
528725000 USD
CY2012Q4 us-gaap Trading Securities Equity
TradingSecuritiesEquity
477088000 USD
CY2013Q2 us-gaap Unearned Premiums
UnearnedPremiums
938112000 USD
CY2012Q4 us-gaap Unearned Premiums
UnearnedPremiums
920429000 USD
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;text-align:justify;text-indent:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-top:6px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates require the Company to apply complex assumptions and judgments, and often the Company must make estimates about effects of matters that are inherently uncertain and will likely change in subsequent periods. The most significant assumptions in the preparation of these consolidated financial statements relate to reserves for losses and loss adjustment expenses. Actual results could differ from those estimates (See Note 1 &#8220;Summary of Significant Accounting Policies&#8221; of the Notes to Consolidated Financial Statements in the Company&#8217;s Annual Report on Form 10-K for the year ended </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">December&#160;31, 2012</font><font style="font-family:inherit;font-size:10pt;">).</font></div></div>
CY2013Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
54941000 shares
CY2012Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
54895000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
54948000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
54915000 shares
CY2013Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
54941000 shares
CY2012Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
54895000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
54886000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
54931000 shares
CY2013Q2 mcy Amortized Cost On Fixed Maturity Trading Investments
AmortizedCostOnFixedMaturityTradingInvestments
2413895000 USD
CY2012Q4 mcy Amortized Cost On Fixed Maturity Trading Investments
AmortizedCostOnFixedMaturityTradingInvestments
2270903000 USD
CY2012Q4 mcy Cost Equity Security Trading Investments
CostEquitySecurityTradingInvestments
475959000 USD
CY2013Q2 mcy Cost Equity Security Trading Investments
CostEquitySecurityTradingInvestments
492573000 USD
CY2012Q4 mcy Cost Short Term Investments
CostShortTermInvestments
294607000 USD
CY2013Q2 mcy Cost Short Term Investments
CostShortTermInvestments
165783000 USD
CY2013Q2 mcy Fair Value Assets Measured On Recurring Basis
FairValueAssetsMeasuredOnRecurringBasis
3176297000 USD
CY2012Q4 mcy Fair Value Assets Measured On Recurring Basis
FairValueAssetsMeasuredOnRecurringBasis
3180095000 USD
CY2013Q2 mcy Fair Value Liabilities Measured On Recurring Basis
FairValueLiabilitiesMeasuredOnRecurringBasis
331000 USD
CY2012Q4 mcy Fair Value Liabilities Measured On Recurring Basis
FairValueLiabilitiesMeasuredOnRecurringBasis
278000 USD
mcy Fair Value Transfers Between Levels One Two And Three Amount
FairValueTransfersBetweenLevelsOneTwoAndThreeAmount
0 transfers
mcy Fair Value Transfers Between Levels One Two And Three Amount
FairValueTransfersBetweenLevelsOneTwoAndThreeAmount
0 transfers
mcy Percentage Of Largest Amount Of Tax Benefit Realized
PercentageOfLargestAmountOfTaxBenefitRealized
0.5
mcy Percentage Of Specific Unadjusted Broker Quotes Obtained
PercentageOfSpecificUnadjustedBrokerQuotesObtained
0.02
mcy Percentage Of Unadjusted Fair Value Obtained
PercentageOfUnadjustedFairValueObtained
0.98
mcy Performance Period Of Restricted Stock And Restricted Stock Units
PerformancePeriodOfRestrictedStockAndRestrictedStockUnits
P3Y
mcy Performance Vesting Restricted Stock Units Three Year Performance Period Ending Years
PerformanceVestingRestrictedStockUnitsThreeYearPerformancePeriodEndingYears
2015
CY2011 mcy Performance Vesting Restricted Stock Units Three Year Performance Period Ending Years
PerformanceVestingRestrictedStockUnitsThreeYearPerformancePeriodEndingYears
2013
CY2012 mcy Performance Vesting Restricted Stock Units Three Year Performance Period Ending Years
PerformanceVestingRestrictedStockUnitsThreeYearPerformancePeriodEndingYears
2014
mcy Performance Vesting Restricted Stock Units Vesting Shares Maximum
PerformanceVestingRestrictedStockUnitsVestingSharesMaximum
190125 shares
CY2011 mcy Performance Vesting Restricted Stock Units Vesting Shares Maximum
PerformanceVestingRestrictedStockUnitsVestingSharesMaximum
120000 shares
CY2012 mcy Performance Vesting Restricted Stock Units Vesting Shares Maximum
PerformanceVestingRestrictedStockUnitsVestingSharesMaximum
200250 shares
mcy Proceeds From Calls Of Available For Sale Securities Equity
ProceedsFromCallsOfAvailableForSaleSecuritiesEquity
923000 USD
mcy Proceeds From Calls Of Available For Sale Securities Equity
ProceedsFromCallsOfAvailableForSaleSecuritiesEquity
0 USD
dei Amendment Flag
AmendmentFlag
false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q2
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2013
dei Document Period End Date
DocumentPeriodEndDate
2013-06-30
dei Document Type
DocumentType
10-Q
dei Entity Central Index Key
EntityCentralIndexKey
0000064996
CY2013Q3 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
54958642 shares
dei Entity Filer Category
EntityFilerCategory
Large Accelerated Filer
dei Entity Registrant Name
EntityRegistrantName
MERCURY GENERAL CORP

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