Alfa Corporation Reports Record 2003 Results.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. 11, 2004 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 year ended December December: see month. 31, 2003. 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 year was a record $74,397,597, or $0.93 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 $68,354,141, or $0.86 per diluted share for 2002, an increase of 7.7% on a per share basis. Net income, which includes net realized investment gains, was a record $78,468,948, or $0.98 per diluted share for 2003, compared with $71,708,006, or $0.90 per diluted share in 2002, a per share increase of 8.3%. Premiums and policy charges for 2003 increased 6.9% to $525,229,034. Operating income for the fourth quarter of 2003 was $20,418,044, or $0.25 per diluted share, compared with fourth quarter 2002 operating income of $19,291,569, or $0.24 per diluted share. After net realized investment gains, net income for the fourth quarter of 2003 was $21,780,443, or $0.27 per diluted share, compared with $20,258,405, or $0.25 per diluted share, in the prior-year period. Premium revenue for the final three months of 2003 increased 5.9% to $133,858,864. 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 are extremely pleased to report another record year. Loss ratios in our property and casualty business were outstanding despite the challenges of increased weather-related losses. Alfa Corporation enters 2004 with a strong balance sheet, a well-positioned property and casualty business, solid consumer finance and commercial lease portfolios, repositioned life products, and a great management team - ready to deliver value to our shareholders. In addition, technology initiatives slated for 2004 delivery will take our ability to service our customers to a new level." 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 1-800-289-0528, 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 play 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 fourth quarter and year ended December 31, 2003 and 2002, along with additional information, click here: http://www.irinfo.com/alfa/4q03fs.pdf.
ALFA CORPORATION
Financial Highlights
Year Ended December 31,
--------------------------------------
2003 2002 Change
------------ ------------ --------
Premiums and Policy Charges $525,229,034 $491,104,980 6.95%
Net Investment Income 83,508,811 88,506,032 (5.65%)
Other Income 3,045,162 2,777,624 9.63%
------------ ------------ --------
Total Revenues 611,783,007 582,388,636 5.05%
Total Expenses 511,449,809 488,203,118 4.76%
------------ ------------ --------
Income Before Provision
for Income Taxes 100,333,198 94,185,518 6.53%
Provision for Income Taxes 25,935,601 25,831,376 0.40%
------------ ------------ --------
Operating Income(a) 74,397,597 68,354,142 8.84%
Realized Investment Gains,
Net of Tax 4,071,351 3,353,864 21.39%
------------ ------------ --------
Net Income $ 78,468,948 $ 71,708,006 9.43%
============ ============ ========
Operating Income Per Share(a)
Basic $ 0.93 $ 0.87 7.47%
Diluted $ 0.93 $ 0.86 7.70%
Net Income Per Share
Basic $ 0.98 $ 0.91 8.05%
Diluted $ 0.98 $ 0.90 8.28%
============ ============ ========
Average Number of Shares
Outstanding
Basic 79,808,669 78,804,265
Diluted 80,390,001 79,546,788
============ ============
Three Months Ended December 31,
--------------------------------------
2003 2002 Change
------------ ------------ --------
Premiums and Policy Charges $133,858,864 $126,376,605 5.92%
Net Investment Income 19,714,474 22,576,597 (12.68%)
Other Income 566,040 699,510 (19.08%)
------------ ------------ --------
Total Revenues 154,139,378 149,652,712 3.00%
Total Expenses 127,776,568 122,522,196 4.29%
------------ ------------ --------
Income Before Provision
for Income Taxes 26,362,810 27,130,516 (2.83%)
Provision for Income Taxes 5,944,766 7,838,947 (24.16%)
------------ ------------ --------
Operating Income(a) 20,418,044 19,291,569 5.84%
Realized Investment Gains,
Net of Tax 1,362,399 966,836 40.91%
------------ ------------ --------
Net Income $ 21,780,443 $ 20,258,405 7.51%
============ ============ ========
Operating Income Per Share(a)
Basic $ 0.25 $ 0.24 4.29%
Diluted $ 0.25 $ 0.24 4.44%
Net Income Per Share
Basic $ 0.27 $ 0.26 5.94%
Diluted $ 0.27 $ 0.25 6.09%
============ ============ ========
Average Number of Shares
Outstanding
Basic 80,293,809 79,115,566
Diluted 80,827,936 79,760,663
============ ============
(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 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. |
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