Alfa Corporation Reports Record First Quarter 2004 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)--April 21, 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 financial results for the three months ended March 31, 2004. 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 $24,529,610, or $0.30 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 $19,896,937, or $0.25 per diluted share for the first quarter of 2003, an increase of 22.1% on a per share basis. Net income, which includes net realized investment gains and losses, was $25,476,887, or $0.32 per diluted share for the first quarter of 2004, compared with $18,729,628, or $0.23 per diluted share for the first quarter of 2003, an increase of 36.0%. Premiums and policy charges for the first quarter of 2004 increased 7.7% to $139,079,736. 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, "I am very pleased with the results of the first quarter. We had a solid quarter in top-line growth, increasing property and casualty earned premium Earned premium is the portion of an insurance written premium which is considered "earned" by the insurer, based on the part of the policy period that the insurance has been in effect, and during which the insurer has been exposed to loss. by 7.6% and life premium by 8.1%. Our combined ratio was an outstanding 84.0% derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from both an improvement in loss ratio and a decrease in expense ratio. We have been through a period of unprecedented investment in technology. In 2004 we should see these systems begin to roll out and improve our operations as well as enhance our customer service. While we have spent untold hours on these projects, Alfa employees have not lost focus on the things that have made our company successful. Profitable top-line growth, excellent 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. and expense control continue to be our recipe for success. These operating results in the first quarter give us a great foundation on which to build for the remainder of 2004." 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 1-800-289-0493, 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, 2004, along with additional information, click here: http://www.irinfo.com/alfa/1q04fs.pdf.
ALFA CORPORATION
Financial Highlights
(Unaudited)
Three Months Ended
March 31,
---------------------------
2004 2003 Change
------------ ------------ -------
Premiums and Policy Charges $139,079,736 $129,187,339 7.66%
Net Investment Income 22,022,668 21,653,987 1.70%
Other Income 558,875 595,630 (6.17%)
------------ ------------ ------
Total Revenues 161,661,279 151,436,956 6.75%
Total Expenses 127,257,403 124,028,952 2.60%
------------ ------------ ------
Income Before Provision for
Income Taxes 34,403,876 27,408,004 25.52%
Provision for Income Taxes 9,874,266 7,511,067 31.46%
------------ ------------ ------
Operating Income(1) 24,529,610 19,896,937 23.28%
Realized Investment Gains,
Net of Tax 947,277 (1,167,309) 181.15%
------------ ------------ ------
Net Income $ 25,476,887 $ 18,729,628 36.02%
============ ============ ======
Operating Income Per Share(1)
Basic $ 0.31 $ 0.25 22.10%
Diluted $ 0.30 $ 0.25 22.14%
Net Income Per Share
Basic $ 0.32 $ 0.24 34.72%
Diluted $ 0.32 $ 0.23 34.76%
----------------------------------------------------------------------
Average Number of Shares
Outstanding
Basic 80,097,071 79,330,609
Diluted 80,652,201 79,903,268
----------------------------------------------------------------------
(1) 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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