News Column

American Equity Reports Fourth Quarter 2013 Results

March 1, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- American Equity Investment Life Holding Company (NYSE: AEL), a leading underwriter of index and fixed rate annuities, reported fourth quarter 2013 net income of $51.0 million, or $0.64 per diluted common share, compared to fourth quarter 2012 net income of $36.4 million, or $0.55 per diluted common share.

Non-GAAP operating income1 for the fourth quarter of 2013 was $39.8 million, or $0.50 per diluted common share, compared to fourth quarter 2012 non-GAAP operating income1 of $30.9 million, or $0.47 per diluted common share.

The diluted share count for fourth quarter 2013 was 79.0 million shares compared to 65.9 million shares for the fourth quarter of 2012. This increase was attributable to the shares issued during the year for retirement of convertible notes and the exercise of stock options and greater dilution from convertible notes, warrants and stock options because the Company's common stock price was substantially higher in the fourth quarter of 2013 compared to the fourth quarter of 2012. 1 In addition to net income, we have consistently utilized operating income and operating income per common share - assuming dilution, non-GAAP financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. See accompanying tables for reconciliations of net income to operating income and descriptions of reconciling items. See Company's Annual Report on Form 10-K for a more complete discussion of the reconciling items and their impact on net income for the periods presented. Because these items fluctuate from period to period in a manner unrelated to core operations, we believe measures excluding their impact are useful in analyzing operating trends. We believe the combined presentation and evaluation of operating income together with net income, provides information that may enhance an investor's understanding of our underlying results and profitability.

Keywords for this news article include: Finance and Investment, Investment and Finance, American Equity Investment Life Holding Company.

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Source: Investment Weekly News


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