Alfa Corporation Reports Record First Quarter Results; First Quarter Operating Income Per Share Up 28.6% to $0.40 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)--April 25, 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 first quarter ended March 31, 2000. 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 quarter was a record $15,787,298 compared with operating income of $12,719,172 for the first quarter of 1999. On a per share basis, operating income was up 28.6% to $0.40 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 $0.31 per diluted share for the similar quarter in 1999. Net income, which includes net realized investment gains, was a record $16,350,175, or $0.41 per diluted share for the first quarter of 2000, compared with net income of $16,280,577, or $0.40 per diluted share for the same period in 1999, a per share increase of 4.0%. Premium revenue for the first quarter of 2000 increased 5.1% to $105,486,896. 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, "A combination of strong property and casualty and life results produced the best first quarter results in our history. Despite a very competitive rate environment in auto insurance, our agency force produced strong sales improvements in auto, as well as in homeowners and life insurance. "The motivational compensation program we initiated during the fourth quarter of 1999 appears to be working well. The incentives are tied to our business plan and, to date, we are ahead of plan. The first quarter of 2000 is a solid start for the year. Of course, we cannot predict the weather, but we are confident that 2000 will be another year of progress." 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
Three Months Ended
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March 31,
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2000 1999 Change
---- ---- ------
Premiums and Policy Charges $105,486,896 $100,377,070 5.09%
Net Investment Income 17,131,830 16,394,194 4.50%
Realized Investment Gains 865,964 5,479,084 (84.20%)
Other Income 802,116 573,508 39.86%
Total Revenues 124,286,806 122,823,856 1.19%
Total Expenses 101,224,103 99,228,890 2.01%
Income Before Provision
for Income Taxes 23,062,703 23,594,966 (2.26%)
Provision for Income Taxes 6,712,528 7,314,389 (8.23%)
Net Income $ 16,350,175 $ 16,280,577 0.43%
Net Income Per Share --
Basic $ 0.41 $ 0.40 3.73%
Diluted $ 0.41 $ 0.40 4.01%
Operating Income(a) $ 15,787,298 $ 12,719,172 24.12%
Operating Income Per Share --
Basic $ 0.40 $ 0.31 28.20%
Diluted $ 0.40 $ 0.31 28.55%
Dividends Per Share $ 0.12 $ 0.1125 6.67%
Average Shares Outstanding
Basic 39,438,331 40,734,802
Diluted 39,640,043 41,052,769
(a) Operating income excludes realized investment gains and losses
and related taxes.
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