Alfa Corporation Reports Record 1999 Results; Fourth Quarter Operating Income Per Share Up 20.5% to $0.39 Per Share.Business Editors 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, 2000 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 record financial results for the fourth quarter and year ended December December: see month. 31, 1999. Record fourth quarter 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. was $15,522,682 for the three months ended December 31, 1999, compared with operating income of $13,325,623 for the fourth quarter of 1998. On a per share basis, operating income was up 20.5% to a record $0.39 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 for the quarter compared with $0.32 per diluted share for the similar quarter in 1998. Net income, which includes net realized investment gains, was a record $16,109,250, or $0.40 per diluted share for the fourth quarter of 1999, compared with net income of $13,649,816, or $0.33 per diluted share for the same period in 1998, a per share increase of 22.0%. Premium revenue for the fourth quarter of 1999 increased 2.8% to $101,810,223. Operating income for the full year ended December 31, 1999, was a record $61,268,205, or $1.52 per diluted share, compared with $53,857,295, or $1.31 per diluted share for 1998, an increase of 16.3% on a per share basis. After net realized investment gains, net income for 1999 was a record $64,557,462, or $1.60 per diluted share, compared with $56,715,691, or $1.38 per share a year ago, a per share increase of 16.4%. Premium revenue for 1999 increased 3.4% to $405,329,951. Return on equity for 1999 was 15.5%, a significant improvement from 14.1% in 1998. 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, &uot;I am honored hon·or n. 1. High respect, as that shown for special merit; esteem: the honor shown to a Nobel laureate. 2. a. Good name; reputation. b. to be able to end 1999, my first year at the helm of Alfa Corporation, by reporting these record results to you. Nineteen ninety-nine was a year in which our company continued its successful track record, with earnings growth driven by continued favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. results from our automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of business, mild weather in our region, and a dedicated and hard working team of officers and employees. &uot;We are confident about our prospects for the year 2000. We know we will be challenged in making continued earnings improvement by the competitive rate environment and by our own success in obtaining the level of 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. results we have achieved. For three years, we have been able to not only maintain our position, but to improve on it, producing combined ratios of 91.5% in 1997, 90.4% in 1998 and 88.5% for 1999. We believe our business plan is sound and believe we can continue to make improvements.&uot; Alfa Corporation is engaged in insurance and financial activities through its subsidiaries. The common stock of Alfa Corporation is traded on Nasdaq Stock Market's National Market under the symbol ALFA. Investors are cautioned that statements in this press release which relate to the future are, by their nature, uncertain and dependent upon numerous contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. - including political, economic, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. , 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Additional information regarding these and other risk factors and uncertainties may be found in Alfa Corporation's filings with the Securities and Exchange Commission.
ALFA CORPORATION
Financial Highlights
Year Ended
---------------------------
December 31,
--------------------------- %
1999 1998 Change
------------ ------------ -----
Premiums and
Policy Charges $405,329,951 $391,838,282 3.44%
Net Investment Income 67,807,030 62,511,658 8.47%
Realized Investment Gains 5,060,396 4,397,533 15.07%
Other Income 4,063,970 2,238,096 81.58%
------------ ------------ -----
Total Revenues 482,261,347 460,985,569 4.62%
------------ ------------ -----
Total Expenses 390,183,891 377,720,651 3.30%
------------ ------------ -----
Income Before Provision
for Income Taxes 92,077,456 83,264,918 10.58%
Provision for Income Taxes 27,519,994 26,549,227 3.66%
------------ ------------ -----
Net Income $ 64,557,462 $ 56,715,691 13.83%
============ ============ =====
Net Income Per Share --
Basic $ 1.61 $ 1.39 16.26%
Diluted $ 1.60 $ 1.38 16.41%
Operating Income (a) $ 61,268,205 $ 53,857,295 13.76%
============ ============ =====
Operating Income Per Share --
Basic $ 1.53 $ 1.32 16.19%
Diluted $ 1.52 $ 1.31 16.34%
Dividends Per Share $ 0.4725 $ 0.4375 8.00%
Avg Shares Outstanding
Basic 39,980,880 40,834,232
============ ============
Diluted 40,235,690 41,148,258
============ ============
Three Months Ended
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December 31,
--------------------------- %
1999 1998 Change
------------ ------------ -----
Premiums and
Policy Charges $101,810,223 $ 99,019,753 2.82%
Net Investment Income 18,019,581 15,442,318 16.69%
Realized Investment Gains 902,412 498,759 80.93%
Other Income 669,168 585,816 14.23%
------------ ------------ -----
Total Revenues 121,401,384 115,546,646 5.07%
------------ ------------ -----
Total Expenses 97,879,655 94,963,688 3.07%
------------ ------------ -----
Income Before Provision
for Income Taxes 23,521,729 20,582,958 14.28%
Provision for Income Taxes 7,412,479 6,933,142 6.91%
------------ ------------ -----
Net Income $ 16,109,250 $ 13,649,816 18.02%
============ ============ =====
Net Income Per Share --
Basic $ 0.41 $ 0.33 21.65%
Diluted $ 0.40 $ 0.33 22.04%
Operating Income (a) $ 15,522,682 $ 13,325,623 16.49%
============ ============ =====
Operating Income Per Share --
Basic $ 0.39 $ 0.33 20.07%
Diluted $ 0.39 $ 0.32 20.46%
Dividends Per Share $ 0.12 $ 0.1125 6.67%
Avg Shares Outstanding
Basic 39,603,002 40,822,140
============ ============
Diluted 39,828,954 41,187,366
============ ============
(a) Operating income excludes realized investment gains and losses
and related taxes.
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