TCHC CEO interview. The name of the Chairman and CEO is Ted Lawson.
Please note that this is not a transcript of a verbatim conversation, but my summary to the best of my ability based on my notes.
Question: Why in the world do you release your earnings after the close on Friday?
Answer: I do it for very specific reasons. We have a radio station here in South Florida, WSBR (740 AM:http://www.wsbrmoneytalkradio.com/cgi-bin/navobjs?template=templatehome.htm
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they have a show on from 6:30 a.m. to 7:00 a.m. in the morning in which our company is mentioned from time to time. I like to go on that show the Monday morning after our earnings are announced, so that people can hear the news and digest it as they begin the week and head to work. I am more interested in getting our story out to ordinary people who believe in our company than anything else and feel this is a good way to do it.
Question: Based on your most recent quarterly earnings release, Revenues do not appear to have increased overall very substantially. Should I not be concerned about this?
Answer: It may appear that way on the surface, but revenues are up considerably under the surface. All areas of the companies revenue are up except finance. Even in finance, however, we are now engaged in other practices that at the time when most revenues were coming in. If you actually break the numbers down in real terms year over year, they are up considerably.
For example, insurance revenues are up in excess of 25% overall, and on the auto side, they are up over 50%. These are strong numbers.
Question: In studying on your company, one of the areas you are involved with is the insurance of mobile homes and houses in the state of Florida. When I think about mobile homes and Florida, I get worried about hurricanes. I lived through Hurricane Hugo in 1989, and saw firsthand what a decimating thing one of those storms can be, especially to houses and mobile homes. What is your risk there?
Answer: This is an excellent question. First, with regard to mobile homes, if you look carefully at our mobile home book, you will see that the mobile homes we insure are in the middle of the state, an area least likely to be impacted by a hurricane. Also, we are not out seeking new mobile home policies but are merely renewing existing policies as those requests come in. Over time our involvement in this area will lessen as a percentage of our overall business.
Second, in terms of homes, we are careful not to have an overexposure to a given area or zip code in terms of the overall number of policies we underwrite. I am very comfortable with our risk structure in terms the whole state of Florida. If I were to tell you there was no risk, I would be a liar, but the spread of the risk is such that we are quite comfortable. To be in insurance means one has to take risks.
Keep in mind that overall in the insurance area we are really very well priced, our loss ratios are going down. New laws in Florida are helping, as is our practice of going to the client’s house to interview him or her for a claim.
Question: You are not very well known on Wall Street. Can you say any more about that?
Answer: The key for me is to focus on growing the people and growing the company’s profits, that is how you get noticed. We are a small little niche company in South Florida who is starting to get name recognition, especially through the radio program I mentioned to you earlier. I take phone calls from firms and interested parties such as yourself constantly. We have significant plans to expand our business. And overall, the key for me is positive earnings growth.
With have further plans to communicate with the street going forward but I cannot expand on these for the record.
Question: What do you enjoy most about what you do?
Answer: I want to promote others success. For me the energy comes from seeing and helping other people in this company grow. You need to understand that I had a bunch of money before I started doing this. If things move in the direction I hope, I want to make a million millionaires. |
