Alfa Corporation Reports First Quarter 2005 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. . -- Alfa Al´fa n. 1. A plant (Macrochloa tenacissima) of North Africa; also, its fiber, used in paper making. Corporation (NASDAQ/NM: ALFA) today announced financial results for the three months ended March 31, 2005. 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 the quarter was $20,844,146, or $0.26 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with operating income of $24,529,610, or $0.30 per diluted share, for the first quarter of 2004, a decrease of 15.1% on a per share basis. Net income, which includes net realized investment gains and losses, was $21,570,344, or $0.27 per diluted share, for the first quarter of 2005 compared with $25,476,887, or $0.32 per diluted share, for the first quarter of 2004, a decrease of 15.4%. Premiums and policy charges for the first quarter of 2005 increased 11.2% to $154,778,156. As previously announced, Alfa's results for the first quarter of 2005 were affected by losses from a series of thunderstorms thunderstorms a storm characterized by thunder and lightning caused by strong rising air currents; identified as agents of animal disease because of their involvement causing (1) spasmodic colic; (2) lightning strike; (3) injuries of cattle acquired in stampedes initiated by storms. that struck 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). and Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by . These thunderstorms produced wind and hail, which caused damage to both automobiles No invention has so transformed the landscape of the United States as the automobile, and no other country has so thoroughly adopted the automobile as its favorite means of transportation. and homes, generating claims of more than $20 million for the Alfa Group Alfa Group Consortium is one of Russia's largest privately owned financial-industrial conglomerates, with interests in oil and gas, commodities trading, commercial and investment banking (Alfa Bank), insurance, retail trade and telecommunications. . The impact of these claims on Alfa Corporation's first quarter earnings, after reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. and taxes, was $0.09 per diluted share. There were no such storm losses in the year-earlier period when Alfa reported record operating income. Alfa's Chairman, President and Chief Executive Officer, Jerry Jer·ry n. pl. Jer·ries Chiefly British Slang A German, especially a German soldier. [Alteration of German. A. Newby, said, "We have had a very successful quarter despite the substantial impact from a series of spring storms that occurred in both February February: see month. and March. Offsetting some of the negative impact of the storm activity was an outstanding core loss ratio of 57%. In addition, our top-line growth increased nicely as a result of the inclusion of Alfa Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). Mutual in our inter-company pooling agreement and the acquisition of Alfa Vision Insurance Group, the most recent addition to the Alfa Family. These are two great management teams, and we believe these companies will continue to make positive contributions to our financial results. Even considering the impact of the latest rounds of storms, we think we've we've Contraction of we have. we've have laid a solid foundation for the remainder of 2005." Alfa Corporation will host a conference call today at 10:30 a.m. Eastern time. Investors and other interested parties may access the teleconference by calling 1-800-946-0782, or via links located on Alfa's web site: www.alfains.com. A 30-day Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the replay of the call will also be available from Alfa's web site. Alfa Corporation is engaged in insurance and financial activities through its subsidiaries. The common stock of Alfa Corporation is traded on the Nasdaq Stock Market's National Market under the symbol ALFA. For unaudited quarterly financial statements for the first quarter ended March 31, 2005, along with additional information, click here: http://www.irinfo.com/alfa/1q05fsm.pdf.
ALFA CORPORATION
Financial Highlights
(Unaudited)
Three Months Ended
March 31,
--------------------------
2005 2004 Change
------------ ------------ --------
Premiums and Policy Charges $154,778,156 $139,180,803 11.21%
Net Investment Income 22,975,156 21,901,161 4.90%
Other Income 877,326 916,767 (4.30%)
------------ ------------ --------
Total Revenues 178,630,638 161,998,731 10.27%
Total Expenses 151,298,562 127,594,854 18.58%
------------ ------------ --------
Income Before Provision for
Income Taxes 27,332,076 34,403,877 (20.56%)
Provision for Income Taxes 6,487,930 9,874,267 (34.29%)
------------ ------------ --------
Operating Income(a) 20,844,146 24,529,610 (15.02%)
Realized Investment Gains,
Net of Tax 726,198 947,277 (23.34%)
------------ ------------ --------
Net Income $ 21,570,344 $ 25,476,887 (15.33%)
============ ============ ========
Operating Income Per Share(a)
Basic $ 0.26 $ 0.31 (15.10%)
Diluted $ 0.26 $ 0.30 (15.05%)
============ ============ ========
Net Income Per Share
Basic $ 0.27 $ 0.32 (15.41%)
Diluted $ 0.27 $ 0.32 (15.36%)
============ ============ ========
Average Number of Shares
Outstanding
Basic 80,165,952 80,097,071
Diluted 80,680,958 80,652,201
============ ============
(a) Management believes that operating income and operating income
per share, non-GAAP financial measures, serve as meaningful
tools for assessing the profitability of the Company's ongoing
operations. Operating income is defined by the Company as net
income excluding realized investment gains and losses, net of
applicable taxes. Operating income per share represents
operating income divided by the weighted average shares
outstanding for the reporting period. Management uses
operating income and operating income per share as measures of
the Company's ongoing profitability since they eliminate the
effect of securities market volatility from earnings.
Investors are cautioned that statements in this press release
which relate to the future are, by their nature, uncertain and
dependent upon numerous contingencies - including political,
economic, regulatory, climatic, competitive, legal, and
technological - any of which could cause actual results and
events to differ materially from those indicated in such
forward-looking statements. Additional information regarding
these and other risk factors and uncertainties may be found in
Alfa Corporation's filings with the Securities and Exchange
Commission.
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