GlobeNewswire Inc | Oct 28, 2020 04:05PM EDT

October 28, 2020

MARIETTA, Pa., Oct. 28, 2020 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the third quarter and first nine months of 2020.

Conference Call and Webcast

We will hold a conference call and webcast on Thursday, October 29, 2020, beginning at 11:00 A.M. Eastern Time. You may listen to the webcast of this conference call by accessing the webcast link on our website at http://investors.donegalgroup.com. A supplemental investor presentation and a replay of the conference call will also be available via our website.

Significant items include

-- Net income for the third quarter of 2020 increased 128.2% to $11.8 million, or $0.41 per diluted Class A share, compared to $5.2 million, or $0.18 per diluted Class A share, for the third quarter of 2019, due primarily to improvement in the loss ratio and net investment gains -- Net premiums earned of $184.9 million for the third quarter of 2020 decreased 2.6% compared to the prior-year third quarter -- Net premiums written1 of $180.8 million for the third quarter of 2020 decreased 1.7% compared to the prior-year third quarter -- Net investment gains of $3.3 million for the third quarter of 2020, primarily related to unrealized gains in the fair value of equity securities held at September 30, 2020, compared to net investment losses of $369,000 for the third quarter of 2019 -- Combined ratio of 98.3% for the third quarter of 2020, compared to 100.6% for the third quarter of 2019 -- Net income for the first nine months of 2020 increased 15.9% to $38.2 million, or $1.33 per diluted Class A share, compared to $33.0 million, or $1.17 per diluted Class A share, for the first nine months of 2019 -- Combined ratio of 95.9% for first nine months of 2020, compared to 100.7% for the first nine months of 2019 -- Book value per share of $16.96 at September 30, 2020, compared to $15.67 at year-end 2019

Summary of Third Quarter and Nine Months Results

Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 % 2020 2019 % Change Change (dollars in thousands, except per share amounts) IncomeStatement DataNetpremiums $ 184,926 $ 189,821 -2.6 % $ 556,552 $ 566,658 -1.8 %earnedInvestmentincome, 7,403 7,390 0.2 21,952 21,728 1.0 netNetinvestment 3,268 (369 ) NM^2 (940 ) 19,294 NM gains(losses)Total 196,512 198,010 -0.8 580,323 611,513 -5.1 revenuesNet income 11,837 5,186 128.2 38,247 32,998 15.9 Non-GAAPoperating 9,255 5,708 62.1 39,151 16,561 136.4 income^1 Per Share DataNet income? Class A $ 0.41 $ 0.18 127.8 % $ 1.33 $ 1.17 13.7 %(diluted)Net income 0.37 0.16 131.3 1.21 1.06 14.2 ? Class BNon-GAAPoperatingincome ? 0.32 0.20 60.0 1.36 0.59 130.5 Class A(diluted)Non-GAAPoperating 0.29 0.18 61.1 1.24 0.53 134.0 income ?Class BBook value 16.96 15.46 9.7 16.96 15.46 9.7

1The Definitions of Non-GAAP Financial Measures section of this release defines and reconciles data that the Company prepares on an accounting basis other than U.S. generally accepted accounting principles (GAAP).

2Not meaningful.

Dividend Information

On October 15, 2020, we declared a regular quarterly cash dividend of $0.15 per share of our Class A common stock and $0.1325 per share of our Class B common stock, payable on November 16, 2020 to stockholders of record as of the close of business on November 2, 2020.

Management Commentary

Overview

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., noted, Donegal Group reported solid bottom line results and higher book value per share, driven by improved underwriting performance and investment gains during the third quarter of 2020 compared to the prior-year third quarter. We benefitted from lower incurred losses in our personal lines segment due to lower-than-average frequency of automobile and homeowners claims. Our net income of $38.2 million, along with unrealized gains within our available-for-sale fixed-maturity portfolio related to a decline in market interest rates during the first nine months of 2020, contributed to an increase in our book value per share to $16.96 at September 30, 2020, which represented an 8.2% increase compared to our book value per share of $15.67 at December 31, 2019.

Growth Trends

Mr. Burke continued, We have consistently prioritized profitability over top-line growth, with our underwriting results for the third quarter of 2020 improving once again over the comparable prior-year period. While our net premiums written decreased 1.7% during the third quarter of 2020 due to a reduction in personal lines premium writings compared to the prior-year third quarter, this decline was mostly offset by commercial lines growth. Similar to the past several quarters, our commercial lines growth reflected strong new business writings and modest average pricing increases on renewal business, as we continue to seek profitable commercial growth in specific geographical markets where we see attractive opportunities to increase market share.

Underwriting Results

Jeffrey D. Miller, Executive Vice President and Chief Financial Officer, commented on the third quarter underwriting results, Donegal Groups combined ratio improved to 98.3% for the third quarter of 2020 as compared to 100.6% in the prior-year quarter, which we primarily attribute to considerable improvement in personal automobile and homeowners results. While increased driving activity resulted in a higher frequency of personal automobile claims compared to the second quarter of 2020, lower traffic density contributed to reduced claim frequency compared to the third quarter of 2019. In addition, we continued to benefit from significant pricing and underwriting actions we implemented over the past two years to improve our personal automobile results. Improvement in our homeowners results was primarily due to a lower incidence of large fire losses as well as a lower weather-related claims impact as a result of our personal lines exit from several weather-prone states during the past year. Reported claims related to COVID-19 decreased significantly during the third quarter of 2020 compared to the claim reporting volume during the second quarter of 2020. While much uncertainty remains with respect to business interruption litigation activity throughout our operating regions, we have not incurred, and do not currently anticipate, significant insured losses directly related to COVID-19. In addition, our workers compensation line of business continued to perform well despite mandated rate reductions over the past year. Net development of reserves for losses incurred in prior accident years did not have a material impact on the loss ratios for the third quarters of 2020 and 2019.

Operations and Outlook

Mr. Burke concluded, We, like so many others, have adapted to a shift in operating procedures as the vast majority of our personnel are continuing to work from their homes as a result of the COVID-19 pandemic. We have seen no substantial declines in operating performance throughout our organization as a result of this transition. We have been able to maintain excellent service levels and to make consistent progress on key strategic initiatives, which reflect both the resilience and dedication of our employees. Our ability to continue to grow our commercial lines premiums speaks to our solid relationships and the reputation we have built with our independent agents. We are working diligently to further enhance our relationships with independent agents, including national agency aggregators and agency groups, across our operating regions. We believe this ongoing relationship emphasis and our commitment to providing quality service to our agents and policyholders will allow us to continue to increase our market share and grow our business profitably in 2021 and beyond.

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries offer personal and commercial property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), three New England states (Maine, New Hampshire and Vermont), six Southern states (Alabama, Georgia, North Carolina, South Carolina, Tennessee and Virginia) and eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 % Change 2020 2019 % Change (dollars in thousands) Net Premiums Earned Commercial lines $ 103,436 $ 98,324 5.2 % $ 307,080 $ 284,593 7.9 %Personal lines 81,490 91,497 -10.9 249,472 282,065 -11.6 Total net premiums $ 184,926 $ 189,821 -2.6 % $ 556,552 $ 566,658 -1.8 %earned Net Premiums WrittenCommercial lines: Automobile $ 31,172 $ 28,702 8.6 % $ 104,083 $ 94,249 10.4 %Workers' 25,467 25,875 -1.6 86,329 88,291 -2.2 compensationCommercial 34,220 32,708 4.6 112,461 106,002 6.1 multi-perilOther 7,714 7,203 7.1 25,007 23,090 8.3 Total commercial 98,573 94,488 4.3 327,880 311,632 5.2 linesPersonal lines: Automobile 46,794 51,991 -10.0 143,610 164,214 -12.5 Homeowners 30,716 32,461 -5.4 85,975 90,174 -4.7 Other 4,697 4,930 -4.7 15,255 15,568 -2.0 Total personal 82,207 89,382 -8.0 244,840 269,956 -9.3 linesTotal net premiums $ 180,780 $ 183,870 -1.7 % $ 572,720 $ 581,588 -1.5 %written

Net Premiums Written

The 1.7% decrease in net premiums written for the third quarter of 2020 compared to the third quarter of 2019, as shown in the table above, represents 4.3% growth in commercial lines net premiums written, offset by an 8.0% decrease in personal lines net premiums written for the reasons we describe below. The $3.1 million decline in net premiums written for the third quarter of 2020 compared to the third quarter of 2019 included:

-- Commercial Lines: $4.1 million increase that we attribute primarily to new commercial accounts our insurance subsidiaries have written throughout their operating regions and a continuation of renewal premium increases. -- Personal Lines: $7.2 million decline that we attribute to net attrition as a result of underwriting measures our insurance subsidiaries implemented to slow new policy growth and to increase pricing on renewal policies, partially offset by premium rate increases our insurance subsidiaries have implemented over the past four quarters.

Underwriting Performance

We evaluate the performance of our commercial lines and personal lines segments primarily based upon the underwriting results of our insurance subsidiaries as determined under statutory accounting practices. The following table presents comparative details with respect to the GAAP and statutory combined ratios1 for the three and nine months ended September 30, 2020 and 2019:

Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 GAAP Combined Ratios (Total Lines) Loss ratio (non-weather) 56.3 % 61.6 % 54.1 % 60.8 %Loss ratio (weather-related) 9.1 7.3 7.6 7.2 Expense ratio 31.9 30.5 33.2 31.5 Dividend ratio 1.0 1.2 1.0 1.2 Combined ratio 98.3 % 100.6 % 95.9 % 100.7 % Statutory Combined Ratios Commercial lines: Automobile 109.9 % 113.9 % 110.5 % 114.3 %Workers' compensation 86.8 85.4 85.9 82.0 Commercial multi-peril 109.2 98.7 98.1 94.4 Other 93.5 76.6 79.5 79.3 Total commercial lines 102.4 97.9 97.3 95.8 Personal lines: Automobile 89.0 103.3 88.6 103.9 Homeowners 97.7 109.4 99.3 106.0 Other 84.0 73.6 76.5 77.7 Total personal lines 91.9 103.9 91.6 103.3 Total lines 97.7 % 100.8 % 94.7 % 99.5 %

Loss Ratio

For the third quarter of 2020, the loss ratio decreased to 65.4%, compared to 68.9% for the third quarter of 2019. Weather-related losses of approximately $16.9 million, or 9.1 percentage points of the loss ratio, for the third quarter of 2020, increased from $13.9 million, or 7.3 percentage points of the loss ratio, for the third quarter of 2019. We primarily attribute the increase in weather-related losses to the August 2020 impacts of Tropical Storm Isaias, which included tornado damage to properties in Delaware, and a derecho severe wind event that primarily impacted Iowa and surrounding states. The impact of weather-related loss activity to the loss ratio for the third quarter of 2020 was in line with our previous five-year average of 9.1% for third quarter weather-related losses.

Large fire losses, which we define as individual fire losses in excess of $50,000, for the third quarter of 2020 were $3.9 million, or 2.1 percentage points of the loss ratio. That amount represented a decrease compared to the large fire losses of $7.8 million, or 4.1 percentage points of the loss ratio, for the third quarter of 2019. Homeowners fire losses decreased in the third quarter of 2020 relative to the prior-year quarter.

Net development of reserves for losses incurred in prior accident years did not have a material impact on the loss ratios for the third quarters of 2020 and 2019. For the third quarter of 2020, our insurance subsidiaries experienced modest favorable development in their workers compensation and personal automobile lines of business, offset by modest unfavorable development in their commercial multi-peril line of business that resulted from reserve increases on a handful of liability claims that exceeded our actuaries expectations for quarterly loss emergence in that line.

The expense ratio was 31.9% for the third quarter of 2020, compared to 30.5% for the third quarter of 2019. Relative to the prior-year quarter, the increase in the expense ratio reflected an increase in technology systems-related expenses, higher commercial growth incentive costs for our agents and increased underwriting-based incentive costs for our agents and employees. The increase in technology systems-related expenses was primarily due to an increased allocation of costs from Donegal Mutual Insurance Company to our insurance subsidiaries following the successful implementation of the first phase of our ongoing systems modernization project in February 2020.

Investment Operations

Donegal Groups investment strategy is to generate an appropriate amount of after-tax income on its invested assets while minimizing credit risk through investment in high-quality securities. As a result, wehad invested93.7% of our consolidated investment portfolio in diversified, highly rated and marketable fixed-maturity securities atSeptember 30, 2020.

September 30, 2020 December 31, 2019 Amount % Amount % (dollars in thousands)Fixed maturities, at carrying value:U.S. Treasurysecurities and obligations of U.S.governmentcorporations and $ 121,221 10.0 % $ 102,281 9.2 %agenciesObligations ofstates and political 350,983 29.1 261,431 23.5 subdivisionsCorporate securities 391,913 32.5 315,641 28.4 Mortgage-backed 266,905 22.1 361,693 32.6 securitiesTotal fixed 1,131,022 93.7 1,041,046 93.7 maturitiesEquity securities, 54,945 4.6 55,477 5.0 at fair valueShort-term 20,686 1.7 14,030 1.3 investments, at costTotal investments 1,206,653 100.0 % 1,110,553 100.0 % Average investment 2.5 % 2.8 % yieldAveragetax-equivalent 2.7 % 2.9 % investment yieldAveragefixed-maturity 4.0 4.2 duration (years)

Total investments at September 30, 2020 increased by $96.1 million from the year-end 2019 balance, partially reflecting investment holdings related to contingent liquidity funding that Atlantic States Insurance Company, our largest insurance subsidiary, obtained in March 2020 for added security in light of uncertainty surrounding the economic impact of the COVID-19 pandemic. Atlantic States Insurance Company issued $50.0 million of debt to the Federal Home Loan Bank of Pittsburgh in exchange for a cash advance in the same amount. The debt carries a fixed interest rate of 0.83% and is due in March 2021.

Net investment income of $7.4 million for the third quarter of 2020 was comparable to net investment income for the third quarter of 2019 as an increase in average invested assets offset a modest decrease in average investment yield.

Net investment gains of $3.3 million for the third quarter of 2020 were primarily related to unrealized gains in the fair value of equity securities held at September 30, 2020. That amount compared to net investment losses of $369,000 for the third quarter of 2019.

Net investment losses of $940,000 for the first nine months of 2020 were primarily related to net realized losses on the sales of equity securities, offset partially by unrealized gains in the fair value of equity securities held at September 30, 2020. Net investment gains of $19.3 million for the first nine months of 2019 included $12.7 million from the March 2019 sale of Donegal Financial Services Corporation, with the remainder primarily related to unrealized gains in the fair value of equity securities held at September 30, 2019.

Definitions of Non-GAAP Financial Measures

We prepare our consolidated financial statements on the basis of GAAP. Our insurance subsidiaries also prepare financial statements based on statutory accounting principles state insurance regulators prescribe or permit (SAP). In addition to using GAAP-based performance measurements, we also utilize certain non-GAAP financial measures that we believe provide value in managing our business and for comparison to the financial results of our peers. These non-GAAP measures are net premiums written, operating income or loss and statutory combined ratio.

Net premiums written and operating income or loss are non-GAAP financial measures investors in insurance companies commonly use. We define net premiums written as the amount of full-term premiums our insurance subsidiaries record for policies effective within a given period less premiums our insurance subsidiaries cede to reinsurers. We define operating income or loss as net income or loss excluding after-tax net investment gains or losses, after-tax restructuring charges and other significant non-recurring items. Because our calculation of operating income or loss may differ from similar measures other companies use, investors should exercise caution when comparing our measure of operating income or loss to the measure of other companies.

The following table provides a reconciliation of net premiums earned to net premiums written for the periods indicated:

Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 % Change 2020 2019 % Change (dollars in thousands) Reconciliationof Net PremiumsEarned to NetPremiums WrittenNet premiums $ 184,926 $ 189,821 -2.6 % $ 556,552 $ 566,658 -1.8 %earnedChange in netunearned (4,146 ) (5,951 ) -30.3 16,168 14,930 8.3 premiumsNet premiums $ 180,780 $ 183,870 -1.7 % $ 572,720 $ 581,588 -1.5 %written

The following table provides a reconciliation of net income to operating income for the periods indicated:

Three Months Ended September Nine Months Ended September 30, 30, 2020 2019 % Change 2020 2019 % Change (dollars in thousands, except per share amounts) Reconciliation of Net Incometo Non-GAAPOperating IncomeNet income $ 11,837 $ 5,186 128.2 % $ 38,247 $ 32,998 15.9 %Investment(gains) losses (2,582 ) 292 NM 743 (16,667 ) NM(after tax)Other, net - 230 -100.0 161 230 -30.0 Non-GAAPoperating $ 9,255 $ 5,708 62.1 % $ 39,151 $ 16,561 136.4 %income Per ShareReconciliation of Net Incometo Non-GAAPOperating IncomeNet income ?Class A $ 0.41 $ 0.18 127.8 % $ 1.33 $ 1.17 13.7 %(diluted)Investment(gains) losses (0.09 ) 0.01 NM 0.02 (0.59 ) NM(after tax)Other, net - 0.01 -100.0 0.01 0.01 0.0 Non-GAAPoperating $ 0.32 $ 0.20 60.0 % $ 1.36 $ 0.59 130.5 %income ? ClassA Net income ? $ 0.37 $ 0.16 131.3 % $ 1.21 $ 1.06 14.2 %Class BInvestment(gains) losses (0.08 ) 0.01 NM 0.02 (0.54 ) NM(after tax)Other, net - 0.01 -100.0 0.01 0.01 0.0 Non-GAAPoperating $ 0.29 $ 0.18 61.1 % $ 1.24 $ 0.53 134.0 %income ? ClassB

The statutory combined ratio is a non-GAAP standard measurement of underwriting profitability that is based upon amounts determined under SAP. The statutory combined ratio is the sum of:

-- the statutory loss ratio, which is the ratio of calendar-year incurred losses and loss expenses to premiums earned; -- the statutory expense ratio, which is the ratio of expenses incurred for net commissions, premium taxes and underwriting expenses to premiums written; and -- the statutory dividend ratio, which is the ratio of dividends to holders of workers compensation policies to premiums earned.

The statutory combined ratio does not reflect investment income, federal income taxes or other non-operating income or expense. A statutory combined ratio of less than 100% generally indicates underwriting profitability.

About the Company

Donegal Group is an insurance holding company. The insurance subsidiaries of Donegal Group and Donegal Mutual Insurance Company conduct business together as the Donegal Insurance Group. Our Class A common stock and Class B common stock trade on the NASDAQ Global Select Market under the symbols DGICA and DGICB, respectively. We are focused on several primary strategies, including growing profitably in commercial lines, improving our financial performance, leveraging technology to transform our business, strategically modernizing our business in order to achieve operational excellence and competing effectively to enhance our market position.

Safe Harbor

We base all statements contained in this release that are not historic facts on our current expectations. These statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and involve a number of risks and uncertainties. Actual results could vary materially. Factors that could cause actual results to vary materially include: our ability to attract new business, retain existing business and collect balances due to us as a result of the prolonged economic challenges resulting from the COVID-19 pandemic and related business shutdown, adverse and catastrophic weather events, our ability to maintain profitable operations, the adequacy of the loss and loss expense reserves of our insurance subsidiaries, business and economic conditions in the areas in which our insurance subsidiaries operate, interest rates, competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, legal and judicial developments including those related to COVID-19 business interruption coverage and exclusions, changes in regulatory requirements and other risks we describe in the periodic reports we file with the Securities and Exchange Commission. You should not place undue reliance on any such forward-looking statements. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

For Further Information:

Jeffrey D. Miller, Executive Vice President & Chief Financial Officer Phone: (717) 426-1931E-mail: investors@donegalgroup.com

Adam Prior, Senior Vice President, The Equity Group Inc.Phone: (212) 836-9606E-mail: aprior@equityny.com

Donegal Group Inc.Consolidated Statements of Income(unaudited; in thousands, except share data) Quarter Ended September 30, 2020 2019 Net premiums earned $ 184,926 $ 189,821 Investment income, net of expenses 7,403 7,390 Net investment gains (losses) 3,268 (369 )Lease income 108 110 Installment payment fees 807 1,058 Total revenues 196,512 198,010 Net losses and loss expenses 120,881 130,743 Amortization of deferred acquisition costs 29,605 31,304 Other underwriting expenses 29,481 26,517 Policyholder dividends 1,811 2,447 Interest 219 443 Other expenses, net 184 251 Total expenses 182,181 191,705 Income before income tax expense 14,331 6,305 Income tax expense 2,494 1,119 Net income $ 11,837 $ 5,186 Net income per common share: Class A - basic $ 0.41 $ 0.19 Class A - diluted $ 0.41 $ 0.18 Class B - basic and $ 0.37 $ 0.16 diluted Supplementary Financial Analysts' Data Weighted-average number of shares outstanding: Class A - basic 23,766,778 23,015,383 Class A - diluted 23,937,173 23,291,609 Class B - basic and 5,576,775 5,576,775 diluted Net premiums written $ 180,780 $ 183,870 Book value per common share at end of period $ 16.96 $ 15.46

Donegal Group Inc.Consolidated Statements of Income(unaudited; in thousands, except share data) Nine Months Ended September 30, 2020 2019 Net premiums earned $ 556,552 $ 566,658Investment income, net of expenses 21,952 21,728Net investment (losses) gains (940 ) 19,294Lease income 326 334Installment payment fees 2,433 3,204Equity in earnings of DFSC - 295 Total revenues 580,323 611,513 Net losses and loss expenses 343,477 385,361Amortization of deferred acquisition costs 89,176 92,821Other underwriting expenses 95,646 85,410Policyholder dividends 5,337 6,766Interest 871 1,312Other expenses, net 993 1,156 Total expenses 535,500 572,826 Income before income tax expense 44,823 38,687Income tax expense 6,576 5,689 Net income $ 38,247 $ 32,998 Net income per common share: Class A - basic $ 1.34 $ 1.18 Class A - diluted $ 1.33 $ 1.17 Class B - basic and $ 1.21 $ 1.06 diluted Supplementary Financial Analysts' Data Weighted-average number of shares outstanding: Class A - basic 23,493,674 22,933,279 Class A - diluted 23,679,262 23,115,784 Class B - basic and 5,576,775 5,576,775 diluted Net premiums written $ 572,720 $ 581,588 Book value per common share at end of period $ 16.96 $ 15.46

Donegal Group Inc.Consolidated Balance Sheets(in thousands) September 30, December 31, 2020 2019 (unaudited) ASSETSInvestments: Fixed maturities: Held to maturity, at amortized cost $ 552,982 $ 476,094 Available for sale, at fair value 578,040 564,952 Equity securities, at fair value 54,945 55,477 Short-term investments, at cost 20,686 14,030 Total investments 1,206,653 1,110,553 Cash 87,877 49,319 Premiums receivable 177,675 165,733 Reinsurance receivable 403,864 367,021 Deferred policy acquisition costs 61,555 59,285 Prepaid reinsurance premiums 174,392 142,476 Other assets 32,191 28,774 Total assets $ 2,144,207 $ 1,923,161 LIABILITIES AND STOCKHOLDERS' EQUITYLiabilities: Losses and loss expenses $ 941,930 $ 869,674 Unearned premiums 558,231 510,147 Accrued expenses 24,584 28,454 Borrowings under lines of credit 85,000 35,000 Subordinated debentures 5,000 5,000 Other liabilities 25,393 23,870 Total liabilities 1,640,138 1,472,145 Stockholders' equity: Class A common stock 271 262 Class B common stock 56 56 Additional paid-in capital 281,917 268,152 Accumulated other comprehensive income 10,370 504 Retained earnings 252,681 223,268 Treasury stock (41,226 ) (41,226 ) Total stockholders' equity 504,069 451,016 Total liabilities and stockholders' $ 2,144,207 $ 1,923,161 equity