State Auto Financial 8-K 2007
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 26, 2007 (July 24, 2007)
STATE AUTO FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Registrants telephone number, including area code: (614) 464-5000
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Section 2. Financial Information
On July 24, 2007, State Auto Financial Corporation (the Company) issued a press release disclosing the Companys results of operations for its three- and six-month periods ended June 30, 2007 (the Release). The full text of the Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The Release included a non-GAAP financial measure, net income from operations per diluted share. Net income from operations differs from GAAP net income only by the exclusion of realized capital gains and (losses), net of applicable taxes, on investment activity for the periods being reported. For the three-month periods ended June 30, 2007 and 2006, GAAP net income was $0.56 per diluted share and $0.10 per diluted share, respectively, while net income from operations was $0.51 per diluted share and $0.08 per diluted share for these same respective periods. For the three-month periods ended June 30, 2007 and 2006, the difference between GAAP net income per diluted share and net income from operations per diluted share was $0.05 and $0.02, respectively, of realized capital gains or losses, net of applicable taxes.
Management uses net income from operations because it believes this calculation better indicates the Companys operating performance than GAAP net income because net income from operations excludes the sometimes volatile realized capital gains/losses, net of applicable federal income taxes, that can produce inconsistent results. Net income from operations provides a more consistent measure on which to predict future earnings of the Company.
Section 7. Regulation FD
The Companys management conducted a conference call on July 24, 2007, at approximately 10:00 a.m., EDST, to review the Companys financial results for the three- and six-month periods ended June 30, 2007, and to respond to questions from interested investors and financial analysts. A copy of the transcript of the conference call is furnished as Exhibit 99.2 to this Current Report on Form 8-K.
Section 9. Financial Statements and Exhibits
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.