ALFA CORPORATION REPORTS 1994 RESULTS.MONTGOMERY Montgomery, city, United States Montgomery, city (1990 pop. 187,106), state capital and seat of Montgomery co., E central Ala., near the head of navigation on the Alabama River just below the confluence of the Coosa and Tallapoosa rivers, and in the rich , Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--Feb. 3, 1995--Alfa Corporation (NASDAQ/NMS:ALFA) today announced results for the fourth quarter and full year ended December December: see month. 31, 1994. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for 1994, which excludes realized investment gains was $32,494,960, or $0.80 per share, compared with 1993 operating income of $39,137,103, or $0.96 per share. Net income, which includes realized investment gains was $32,866,738, or $0.81 per share in 1994, compared with $44,960,230, or $1.10 per share for 1993. Realized investment gains were $571,966, or $0.01 per share on an after tax basis in 1994, versus $4,890,169, or $0.08 per share in 1993. The substantially lower realized investment gains in 1994 were due to the Company's decision to take advantage of losses in the bond portfolio created by the rapid rise in interest rates. By selling selected bonds with losses and replacing them with new bonds at higher yields, the Company reduced its taxes, increased its future cash flow and strengthened the balance sheet. Net income for 1993 includes $2.6 million, or $0.06 per share, to reflect the cumulative effect of changes in accounting principles. Premiums for 1994 increased 12.4% to $247,130,623. Operating income for the fourth quarter of 1994 was $8,569,486, or $0.21 per share, compared with $12,181,597, or $0.30 per share, for the fourth quarter of 1993. The fourth quarter net income comparison was $5,264,040, or $0.13 per share, compared with $10,953,035, or $0.27 per share. Premiums for the quarter increased 31.6% to $73,780,786. Alfa's Chairman, Goodwin L. Myrick, said, "The pooling of an additional 15 points of the combined companies' underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. risks, which became effective October October: see month. 1, 1994, was the primary reason for the large increase in premiums and expenses during the fourth quarter. We also made the decision during the fourth quarter to add to our loss reserves for potential additional claims based on recent claims trends. As a result of these changes our loss ratio as a percentage of premiums increased, which produced lower operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before . At year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. our loss ratio was 65%, still well below the average for our industry, but above the record low levels of the last several years. "The outlook for 1995 is positive. The insurance market is highly competitive, but we believe our low operating costs operating costs npl → gastos mpl operacionales and strong market position, particularly in Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). , will allow us to protect and grow our market share. Investment income should also begin to improve as new funds generated by operations are invested at higher interest rates," Myrick concluded. Alfa Corporation is engaged in insurance and financial activities through its subsidiaries. The common stock of Alfa Corporation is traded in the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on National Market System under the symbol ALFA. -0-
Alfa Corporation
Financial Highlights
Year Ended
December 31 %
1994 1993 Change
Premiums and policy charges $247,130,623 $219,913,229 12.38%
Net investment income 44,283,952 43,589,500 1.59%
Realized investment gains
(losses) 571,966 4,890,169 (88.30%)
Other income 3,056,928 2,918,328 4.75%
Total revenues 295,043,469 271,311,226 8.75%
Total expenses 247,211,675 207,996,651 18.85%
Income before provision for
income taxes and cumulative
effects of changes in
accounting principles 47,831,794 63,314,575 (24.45%)
Provision for income taxes 14,965,056 20,998,862 (28.73%)
Income before cumulative
effects of changes in
accounting principles 32,866,738 42,315,713 (22.33%)
Cumulative effects of
changes in accounting
principles net of tax
of $1,362,325 2,644,517
Net income $ 32,866,738 $ 44,960,230 (26.90%)
Income per share before
cumulative effects of
changes in accounting
principles $ 0.81 $ 1.04 (22.33%)
Per share cumulative
effects of changes in
accounting principles 0.06
Net income per share $ 0.81 $ 1.10 (26.90%)
Operating income $ 32,494,960 $ 39,137,103 (16.97%)
Operating income per
share $ 0.80 $ 0.96 (16.97%)
Average number of
shares outstanding 40,785,912 40,785,912
Three Months Ended
December 31 %
1994 1993 Change
Premiums and policy charges $ 73,780,786 $ 56,078,179 31.57%
Net investment income 11,188,242 11,157,105 0.28%
Realized investment gains
(losses) (5,085,302) (1,890,095) 169.05%
Other income 582,595 923,723 (36.93%)
Total revenues 80,466,321 66,268,912 21.42%
Total expenses 73,256,347 49,909,084 46.78%
Income before provision for
income taxes and cumulative
effects of changes in
accounting principles 7,209,974 16,359,828 (55.93%)
Provision for income taxes 1,945,934 5,406,793 (64.01%)
Income before cumulative
effects of changes in
accounting principles 5,264,040 10,953,035 (51.94%)
Net income $ 5,264,040 $ 10,953,035 (51.94%)
Income per share before
cumulative effects of
changes in accounting
principles $ 0.13 $ 0.27 (51.94%)
Net income per share $ 0.13 $ 0.27 (51.94%)
Operating income $ 8,569,486 $ 12,181,597 (29.65%)
Operating income per
share $ 0.21 $ 0.30 (29.65%)
Average number of
shares outstanding 40,785,912 40,785,912
CONTACT: Alfa Corporation, Montgomery Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. Price, 205/288-3900 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion