Nonstandard auto insurer First Acceptance posted a fourth-quarter profit of $3.2 million, or 7 cents per share, versus just $96,000 a year earlier. Revenues at the Green Hills-based company climbed 7 percent to $59.2 million.
First Acceptance's premium revenues rose almost 6 percent to $48.7 million, led by growth in Alabama, Ohio and South Carolina. The company also generated $1.2 million more in commission and fee revenues than in late 2012. Coupled with losses and expenses falling as a percent of premiums, the company's combined ratio came in at 94.0 percent versus 99.8 percent a year prior.
Shares of First Acceptance (Ticker: FAC) ended Tuesday trading up 1.2 percent at $2.62. They've run up about 40 percent in the past three months.
Specialty drug marketer Cumberland Pharmaceuticals lost $1.5 million during the fourth quarter, reversing a late-2012 profit of $1.8 million, as revenues fell 40 percent to $8.2 million. But expenses stayed flat as management invested in new product development.
On an operating level, Nashville-based Cumberland posted a $2.5 million loss after earning almost $3.3 million in the last three months of 2012. The combined sales of its largest drugs, Acetadote and Kristalose, were $6.5 million versus $6.0 million in the third quarter.
"The Company encountered new challenges in 2013 and I am pleased to report that our team rose to the occasion," said CEO A.J. Kazimi, who on Monday announced the acquisition of a blood plasma treatment. "Our strategic theme for 2014 is to continue to build a diversified specialty product portfolio while deploying our resources to sustain long-term profitability. We will continue to focus on our mission of improving patient care through the delivery of high quality pharmaceutical products."
Cumberland stock (Ticker: CPIX) rose almost 2 percent Tuesday to $4.76 before the company reported its numbers. It has fallen about 4 percent over the past three months.
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