Segment Results

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Segment Results

The Company conducts business through three business segments: (i) Payment Protection; (ii) BPO; and (iii) Brokerage. The revenue for each segment is presented to reflect the operating characteristics of the segment. The Company allocates certain revenues and expenses to the segments. These items consist primarily of corporate-related income, transaction related costs, executive stock compensation and other overhead expenses. Segment assets are not presented to the Company's chief operating decision maker for operational decision-making and therefore are not disclosed in the accompanying table.

The Company measures the profitability of its business segments with the allocation of Corporate revenues and expenses and without taking into account amortization, depreciation, interest expense and income taxes. The Company refers to this financial performance measure as segment EBITDA (earnings before interest, taxes, depreciation and amortization). The Company's financial measure of segment EBITDA meets the definition of a Non-GAAP financial measure and is not a recognized term under U.S. GAAP, nor is it an alternative to the U.S. GAAP financial measures presented in this Form 10-Q. The Non-GAAP financial measure in this Form 10-Q should be used in addition to, but not as a substitute for, the U.S. GAAP financial measures presented elsewhere in this Form 10-Q. The Company believes that this Non-GAAP financial measure provides useful information to management, analysts and investors regarding financial and business trends relating to the Company's results of operations and financial condition. The variability of the Company's segment EBITDA is significantly affected by segment net revenues because a large portion of the Company's operating expenses are fixed. The Company's industry peers may also provide similar supplemental Non-GAAP financial measures, although they may not use the same or comparable terminology and may not make identical adjustments. 

The following table presents the Company's business segment results:

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Segment Net Revenue
Payment Protection
Service and administrative fees	$	4,677		$	5,695		$	13,876		$	14,704
Ceding commission	11,122			7,027			25,396			21,428
Net investment income	744			801			2,219			2,636
Net realized (losses) gains on the sale of investments	(16		)	1,196			(6		)	2,423
Other income	52			18			172			138
Net earned premium	33,893			28,673			97,770			84,646
Net losses and loss adjustment expenses	(11,430		)	(9,714		)	(32,272		)	(28,338		)
Commissions	(21,548		)	(17,926		)	(61,479		)	(53,766		)
Total Payment Protection Net Revenue	17,494			15,770			45,676			43,871
BPO	4,951			3,833			13,565			11,088
Brokerage
Brokerage commissions and fees	8,411			8,611			27,295			25,686
Service and administrative fees	428			597			1,349			2,249
Total Brokerage	8,839			9,208			28,644			27,935
Total segment net revenue	31,284			28,811			87,885			82,894
Operating Expenses

	For the Three Months Ended					For the Nine Months Ended
	September 30, 2012		September 30, 2011			September 30, 2012		September 30, 2011
Payment Protection	9,563		8,445			26,205		25,857
BPO	3,836		2,717			10,320		8,164
Brokerage	7,268		7,491			21,577		21,837
Corporate	—		36			—		1,763
Total operating expenses	20,667		18,689			58,102		57,621
EBITDA
Payment Protection	7,931		7,325			19,471		18,014
BPO	1,115		1,116			3,245		2,924
Brokerage	1,571		1,717			7,067		6,098
Corporate	—		(36		)	—		(1,763		)
Total EBITDA	10,617		10,122			29,783		25,273
Depreciation and Amortization
Payment Protection	863		927			2,577		3,204
BPO	494		307			1,495		824
Brokerage	641		650			2,287		1,683
Total depreciation and amortization	1,998		1,884			6,359		5,711
Interest Expense
Payment Protection	1,359		1,053			3,342		3,622
BPO	294		96			820		258
Brokerage	372		757			1,105		1,982
Total interest expense	2,025		1,906			5,267		5,862
Income before income taxes and non-controlling interest
Payment Protection	5,709		5,345			13,552		11,188
BPO	327		713			930		1,842
Brokerage	558		310			3,675		2,433
Corporate	—		(36		)	—		(1,763		)
Total income before income taxes and non-controlling interest	6,594		6,332			18,157		13,700
Income taxes	2,455		2,259			6,520		4,847
Less: net income (loss) attributable to non-controlling interest	29		1			62		(171		)
Net income	$	4,110	$	4,072		$	11,575	$	9,024

The following table reconciles segment information to the Company's Consolidated Statements of Income and provides a summary of other key financial information for each segment:

	For the Three Months Ended				For the Nine Months Ended
Reconciliation of Segment Net Revenue to Total Revenue and EBITDA to Net Income	September 30, 2012		September 30, 2011		September 30, 2012		September 30, 2011
Segment Net Revenue
Payment Protection	$	17,494	$	15,770	$	45,676	$	43,871
BPO	4,951		3,833		13,565		11,088
Brokerage	8,839		9,208		28,644		27,935
Segment net revenues	31,284		28,811		87,885		82,894
Net losses and loss adjustment expenses	11,430		9,714		32,272		28,338
Commissions	21,548		17,926		61,479		53,766

	For the Three Months Ended					For the Nine Months Ended
Reconciliation of Segment Net Revenue to Total Revenue and EBITDA to Net Income	September 30, 2012		September 30, 2011			September 30, 2012		September 30, 2011
Total segment revenue	64,262		56,451			181,636		164,998
Operating Expenses
Payment Protection	9,563		8,445			26,205		25,857
BPO	3,836		2,717			10,320		8,164
Brokerage	7,268		7,491			21,577		21,837
Corporate	—		36			—		1,763
Total operating expenses	20,667		18,689			58,102		57,621
Net losses and loss adjustment expenses	11,430		9,714			32,272		28,338
Commissions	21,548		17,926			61,479		53,766
Total operating expenses before depreciation, amortization and interest expense	53,645		46,329			151,853		139,725
EBITDA
Payment Protection	7,931		7,325			19,471		18,014
BPO	1,115		1,116			3,245		2,924
Brokerage	1,571		1,717			7,067		6,098
Corporate	—		(36		)	—		(1,763		)
Total EBITDA	10,617		10,122			29,783		25,273
Depreciation and amortization
Payment Protection	863		927			2,577		3,204
BPO	494		307			1,495		824
Brokerage	641		650			2,287		1,683
Total depreciation and amortization	1,998		1,884			6,359		5,711
Interest Expense
Payment Protection	1,359		1,053			3,342		3,622
BPO	294		96			820		258
Brokerage	372		757			1,105		1,982
Total interest expense	2,025		1,906			5,267		5,862
Income before income taxes and non-controlling interest
Payment Protection	5,709		5,345			13,552		11,188
BPO	327		713			930		1,842
Brokerage	558		310			3,675		2,433
Corporate	—		(36		)	—		(1,763		)
Total income before income taxes and non-controlling interest	6,594		6,332			18,157		13,700
Income taxes	2,455		2,259			6,520		4,847
Less: net income (loss) attributable to non-controlling interest	29		1			62		(171		)
Net income	$	4,110	$	4,072		$	11,575	$	9,024