Alfa Corporation Reports Record First Half 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)--July 16, 1998--Alfa Corporation (Nasdaq/NM:ALFA) today announced record first half results for the six months ended June June: see month. 30, 1998. 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 first half of 1998 increased 8.3% to a record $25,293,143, or $0.62 per share, compared with $23,355,203, or $0.57 per share, a year ago. After including realized investment gains, net income for the first half of 1998 was a record $27,941,817, or $0.68 per share, compared with $26,746,920, or $0.66 per share in the first half of 1997. Premium revenue for the first six months of 1998 increased 6.2% to $194,085,800. Operating income for the second quarter of 1998 was $10,909,035, or $0.27 per share, and has been reduced by claims of $6.5 million, or $0.10 per share from the full impact of storms in April 1998, which were reported previously. These results compare with operating income of $12,416,750, or $0.30 per share, for the record second quarter of 1997. Net income for the second quarter of 1998, including net realized investment gains, was $11,881,575, or $0.29 per share, compared with $13,692,673, or $0.34 per share. Premium revenue for the quarter increased 5% to $97,049,291. The per share amounts represent both Basic and Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . They are computed using basic and 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. average shares outstanding, which are not materially different. Alfa's Chairman, Goodwin L. Myrick, said "We are pleased with our record results for the first half of 1998 as well as the strong second quarter results. The company continues to reap benefits from several initiatives undertaken in the past 18 months focusing on managing catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). expense, improving risk selection and controlling administrative expenses. The company's record six month results are directly related to these initiatives. We are confident about the strength of our business fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point and prospects for its growth." Alfa Corporation is engaged in insurance and financial activities through its subsidiaries. The common stock of Alfa Corporation is traded on 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 Stock Market's National Market under the symbol ALFA. -0-
ALFA CORPORATION
FINANCIAL HIGHLIGHTS
(Unaudited)
Six Months Ended June 30,
------------------------------------
1998 1997 % Change
------------ ------------ ---------
Premiums and Policy Charges $194,085,800 $182,724,322 6.22%
Net Investment Income 30,825,971 27,916,606 10.42%
Realized Investment Gains 4,074,883 5,218,026 (21.91%)
Other Income 1,087,865 1,128,702 (3.62%)
------------ ------------ ---------
Total Revenues 230,074,519 216,987,656 6.03%
------------ ------------ ---------
Total Expenses 189,738,899 178,222,564 6.46%
------------ ------------ ---------
Income Before Provision
for Income Taxes 40,335,620 38,765,092 4.05%
Provision for Income Taxes 12,393,803 12,018,172 3.13%
------------ ------------ ---------
Net Income $ 27,941,817 $ 26,746,920 4.47%
============ ============ =========
Net Income Per Share
Basic and Diluted $0.68 $0.66 4.47%
===== ===== =====
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Operating Income(a) $ 25,293,143 $ 23,355,203 8.30%
============ ============ =========
Operating Income Per Share
Basic and Diluted $0.62 $0.57 8.30%
===== ===== =====
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Average Number of Shares
Outstanding
Basic 40,813,636 40,786,712
============ ===========
Diluted 41,098,166 40,854,174
============ ===========
(a) Operating income excludes realized investment gains and related
taxes.
Three Months Ended June 30,
------------------------------------
1998 1997 % Change
------------ ------------ ---------
Premiums and Policy Charges $ 97,049,291 $ 92,240,084 5.21%
Net Investment Income 15,307,378 13,917,544 9.99%
Realized Investment Gains 1,496,215 1,962,958 (23.78%)
Other Income 468,646 578,314 (18.96%)
------------ ------------ ---------
Total Revenues 114,321,530 108,698,900 5.17%
------------ ------------ ---------
Total Expenses 97,395,510 88,872,199 9.59%
------------ ------------ ---------
Income Before Provision
for Income Taxes 16,926,020 19,826,701 (14.63%)
Provision for Income Taxes 5,044,445 6,134,028 (17.76%)
------------ ------------ ---------
Net Income $ 11,881,575 $ 13,692,673 (13.23%)
============ ============ =========
Net Income Per Share
Basic and Diluted $0.29 $0.34 (13.32%)
===== ===== =====
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Operating Income(a) $ 10,909,035 $ 12,416,750 (12.14%)
============ ============ =========
Operating Income Per Share
Basic and Diluted $0.27 $0.30 (12.24%)
===== ===== =====
----------------------------------------------------------------------
Average Number of Shares
Outstanding
Basic 40,830,127 40,786,712
============ ===========
Diluted 41,149,299 40,866,226
============ ===========
(a) Operating income excludes realized investment gains and related
taxes.
CONTACT: Alfa Corp., Montgomery
Donald Price, 334/288-3900
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