Reported Earnings • May 17
First quarter 2024 earnings released: US$0.37 loss per share (vs US$0.13 loss in 1Q 2023) First quarter 2024 results: US$0.37 loss per share (further deteriorated from US$0.13 loss in 1Q 2023). Revenue: US$45.5m (up 2.0% from 1Q 2023). Net loss: US$5.53m (loss widened 194% from 1Q 2023). Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 02
Full year 2023 earnings released: US$0.67 loss per share (vs US$1.38 loss in FY 2022) Full year 2023 results: US$0.67 loss per share (improved from US$1.38 loss in FY 2022). Revenue: US$177.6m (up 8.3% from FY 2022). Net loss: US$9.89m (loss narrowed 52% from FY 2022). Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 17
Third quarter 2023 earnings released: US$0.54 loss per share (vs US$0.34 loss in 3Q 2022) Third quarter 2023 results: US$0.54 loss per share (further deteriorated from US$0.34 loss in 3Q 2022). Revenue: US$43.7m (up 10.0% from 3Q 2022). Net loss: US$7.98m (loss widened 57% from 3Q 2022). Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Oct 05
iA American Holdings Inc. entered into an agreement to acquire Vericity, Inc. (NasdaqCM:VERY) from J.C. Flowers & Co. LLC and others for $170 million. iA American Holdings Inc. entered into an agreement to acquire Vericity, Inc. (NasdaqCM:VERY) from J.C. Flowers & Co. LLC and others for $170 million on October 3, 2023. As part of consideration, Vericity stockholders to receive $11.43 per share in cash. The purchase price of $170 million will be funded by iA with existing cash on hand. The transaction is subject to obtaining the usual regulatory approvals in Canada and the United States, antitrust approval, and other customary closing conditions for a transaction of this type. Stockholders of Vericity have adopted and approved the merger agreement. Vericity’s board of directors unanimously approved the merger agreement. The merger is expected to close in the first half of 2024.
Raymond James Financial, Inc. acted as financial advisor and fairness opinion provider and Todd E. Freed and Jon A. Hlafter of Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisors to Vericity. The transaction is expected to become slightly accretive to core EPS in year 2 and to EPS in year 3. David D. Luce and Jeffrey S. Hochman of Willkie Farr & Gallagher LLP acted as legal advisors for iA American Holdings Inc. New Risk • Aug 20
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 9.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (9.9% average weekly change). Market cap is less than US$100m (US$89.5m market cap). Reported Earnings • Aug 15
Second quarter 2023 earnings released: EPS: US$0.13 (vs US$0.16 loss in 2Q 2022) Second quarter 2023 results: EPS: US$0.13 (up from US$0.16 loss in 2Q 2022). Revenue: US$44.7m (up 4.7% from 2Q 2022). Net income: US$1.98m (up US$4.33m from 2Q 2022). Profit margin: 4.4% (up from net loss in 2Q 2022). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. New Risk • Aug 13
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: US$99.7m This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-US$7.2m free cash flow). Earnings have declined by 1.6% per year over the past 5 years. Minor Risk Market cap is less than US$100m (US$99.7m market cap). Announcement • Jun 21
Vericity, Inc., Annual General Meeting, Aug 02, 2023 Vericity, Inc., Annual General Meeting, Aug 02, 2023, at 09:00 Central Daylight. Agenda: To elect the Board of Directors, with each director serving until the next annual meeting and until his successor is elected and qualified; and to ratify the Audit Committee’s selection of Deloitte & Touche LLP as the Company’s independent registered public accounting firm for 2023. Reported Earnings • May 17
First quarter 2023 earnings released: US$0.13 loss per share (vs US$0.38 loss in 1Q 2022) First quarter 2023 results: US$0.13 loss per share (improved from US$0.38 loss in 1Q 2022). Revenue: US$44.6m (up 13% from 1Q 2022). Net loss: US$1.88m (loss narrowed 67% from 1Q 2022). Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Announcement • Jan 10
Vericity, Inc. Announces Executive Changes Vericity, Inc. announced the hiring of Melissa Balsan as Executive Vice President (EVP) and Chief Marketing Officer (CMO). This appointment coincides with the upcoming retirement of Vericity’s current EVP and CMO, Laura Zimmerman. Effective January 9, 2023, Balsan will report to Vericity’s Chief Executive Officer, James E. Hohmann and oversee all aspects of the Company's marketing efforts. As a proven Direct-to-Consumer marketer with significant demand-generation and brand management experience, she will play a pivotal, strategic role in accelerating Vericity’s future growth plans. As CMO, Balsan will be responsible for leading a fully integrated marketing strategy for the eFinancial and Fidelity Life businesses. Balsan will be responsible for advancing digital marketing capabilities while overseeing organic and search engine marketing, paid media, lead generation, strategic partnerships, and online sales for the Company’s patented life insurance offerings. She will also play an integral role in Vericity’s enterprise strategy, operational planning, and competitive intelligence to create a seamless customer experience. Balsan comes to the company from GoHealth where she served as Chief Marketing Officer. She previously served as CMO for Endurance Warranty Services and has held marketing leadership positions at direct-to-consumer businesses including Perdoceo Education Corporation and CareerBuilder.com. Laura Zimmerman will be assisting in the transition and will retire in April of 2023. Zimmerman, who has been with the Company since February of 2016, will continue to serve on Vericity’s Board of Directors. Balsan attended Adrian College in Adrian, Michigan where she earned her BBA in Marketing. She will operate primarily out of the Company’s Chicago office. Reported Earnings • Nov 17
Third quarter 2022 earnings released: US$0.34 loss per share (vs US$0.38 loss in 3Q 2021) Third quarter 2022 results: US$0.34 loss per share (improved from US$0.38 loss in 3Q 2021). Revenue: US$39.7m (down 5.3% from 3Q 2021). Net loss: US$5.09m (loss narrowed 9.0% from 3Q 2021). Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 33% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 16
Second quarter 2022 earnings released: US$0.16 loss per share (vs US$0.078 loss in 2Q 2021) Second quarter 2022 results: US$0.16 loss per share (down from US$0.078 loss in 2Q 2021). Revenue: US$42.7m (down 2.8% from 2Q 2021). Net loss: US$2.35m (loss widened 102% from 2Q 2021). Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 34% per year, which means it is significantly lagging earnings. Announcement • Jun 22
Vericity, Inc., Annual General Meeting, Aug 03, 2022 Vericity, Inc., Annual General Meeting, Aug 03, 2022, at 09:00 Central Daylight. Agenda: To elect the Board of Directors, with each director serving until the next annual meeting and until his successor is elected and qualified; to approve changes to the Company’s Charter and Bylaws; and to ratify the Audit Committee’s selection of Deloitte & Touche LLP as the Company’s independent registered public accounting firm for 2022. Reported Earnings • May 17
First quarter 2022 earnings released: US$0.38 loss per share (vs US$0.41 loss in 1Q 2021) First quarter 2022 results: US$0.38 loss per share (up from US$0.41 loss in 1Q 2021). Revenue: US$39.5m (down 6.5% from 1Q 2021). Net loss: US$5.66m (loss narrowed 6.7% from 1Q 2021). Board Change • Apr 27
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 1 experienced director. 2 highly experienced directors. Director Richard Hemmings is the most experienced director on the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Apr 02
Full year 2021 earnings released: US$1.12 loss per share (vs US$1.68 loss in FY 2020) Full year 2021 results: US$1.12 loss per share (up from US$1.68 loss in FY 2020). Revenue: US$176.6m (up 19% from FY 2020). Net loss: US$16.7m (loss narrowed 33% from FY 2020). Reported Earnings • Nov 18
Third quarter 2021 earnings released: US$0.38 loss per share (vs US$0.22 loss in 3Q 2020) The company reported a soft third quarter result with increased losses and weaker control over costs, although revenues improved. Third quarter 2021 results: Revenue: US$41.9m (up 15% from 3Q 2020). Net loss: US$5.59m (loss widened 72% from 3Q 2020). Reported Earnings • Aug 18
Second quarter 2021 earnings released: US$0.078 loss per share (vs US$0.46 loss in 2Q 2020) The company reported a solid second quarter result with reduced losses, improved revenues and improved control over expenses. Second quarter 2021 results: Revenue: US$44.0m (up 20% from 2Q 2020). Net loss: US$1.16m (loss narrowed 83% from 2Q 2020). Reported Earnings • May 19
First quarter 2021 earnings released: US$0.41 loss per share (vs US$0.58 loss in 1Q 2020) The company reported a solid first quarter result with reduced losses, improved revenues and improved control over expenses. First quarter 2021 results: Revenue: US$42.2m (up 16% from 1Q 2020). Net loss: US$6.07m (loss narrowed 29% from 1Q 2020). Reported Earnings • Apr 02
Full year 2020 earnings released: US$1.68 loss per share (vs US$1.30 loss in FY 2019) The company reported a soft full year result with increased losses and weaker control over costs, although revenues improved. Full year 2020 results: Revenue: US$147.8m (up 9.3% from FY 2019). Net loss: US$25.0m (loss widened 30% from FY 2019). Is New 90 Day High Low • Mar 12
New 90-day high: US$11.72 The company is up 8.0% from its price of US$10.85 on 11 December 2020. The American market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Insurance industry, which is up 12% over the same period. Is New 90 Day High Low • Jan 13
New 90-day low: US$9.13 The company is down 13% from its price of US$10.50 on 14 October 2020. The American market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Insurance industry, which is up 16% over the same period. Is New 90 Day High Low • Dec 27
New 90-day low: US$10.00 The company is down 2.0% from its price of US$10.25 on 28 September 2020. The American market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Insurance industry, which is up 19% over the same period. Reported Earnings • Nov 18
Third quarter 2020 earnings released: US$0.22 loss per share The company reported a solid third quarter result with reduced losses and improved revenues and control over expenses. Third quarter 2020 results: Revenue: US$36.5m (up 5.5% from 3Q 2019). Net loss: US$3.26m (loss narrowed 62% from 3Q 2019). Is New 90 Day High Low • Nov 12
New 90-day high: US$11.37 The company is up 27% from its price of US$8.97 on 13 August 2020. The American market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Insurance industry, which is up 7.0% over the same period. Is New 90 Day High Low • Oct 22
New 90-day high: US$11.25 The company is up 30% from its price of US$8.68 on 24 July 2020. The American market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Insurance industry, which is down 2.0% over the same period. Is New 90 Day High Low • Sep 30
New 90-day high: US$10.44 The company is up 12% from its price of US$9.36 on 02 July 2020. The American market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Insurance industry, which is up 3.0% over the same period. 