Alfa Corporation Reports Second Quarter 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. . -- 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 second quarter and six months ended June June: see month. 30, 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 second quarter was $19,311,505, or $0.24 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 $17,132,519, or $0.21 per diluted share for the second quarter of 2003, an increase of 12.3% on a per share basis. 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 Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the from earnings. Second quarter 2004 results were reduced by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $6.0 million, after tax, or $0.07 per diluted share, due to previously reported storm losses. Net income, which includes net realized investment gains, was $20,566,131, or $0.26 per diluted share for the second quarter of 2004, compared with net income of $19,187,821, or $0.24 per diluted share for the same period in 2003, a per share increase of 6.8%. Premiums and policy charges increased 7.2% to $139,202,424 for the second quarter of 2004. For the six months ended June 30, 2004, operating income was $43,841,115 compared with operating income of $37,029,456 for the first half of 2003. On a per share basis, operating income increased 17.6% to $0.54 per diluted share for the six-month period in 2004 compared with $0.46 per diluted share for the similar period in 2003. Net income, which includes net realized investment gains, was $46,043,018, or $0.57 per diluted share for the first six months of 2004, compared with net income of $37,917,449, or $0.47 per diluted share for the same period in 2003, a per share increase of 20.6%. Premiums and policy charges increased 7.4% to $278,282,159 for the first half of 2004. 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 very pleased with our second quarter results, especially in light of significant storm activity in mid-April Noun 1. mid-April - the middle part of April period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" Apr, April - the month following March and preceding May and late May that added over $9,000,000 to losses in the quarter. The positive news is that our core loss and expense ratios continue to be favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. , demonstrating that we are operating at very efficient levels. In addition, we continue to make significant progress on our large technology projects, including new property and casualty and life policy administration systems. We are nearing the finish line on these technology initiatives and look forward to increasing efficiencies and enhancing customer service as we reach these significant milestones. We expect to report continuing progress as 2004 unfolds." 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 800-946-0741, 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.
ALFA CORPORATION
Financial Highlights
(Unaudited)
Six Months Ended
June 30,
----------------------------------------
2004 2003 Change
------------ ------------ -------
Premiums and Policy Charges $278,282,159 $259,032,749 7.43%
Net Investment Income 44,695,928 42,991,227 3.97%
Other Income 820,262 1,350,196 (39.25%)
------------ ------------ -------
Total Revenues 323,798,349 303,374,172 6.73%
Total Expenses 263,549,770 252,336,367 4.44%
------------ ------------ -------
Income Before Provision
for Income Taxes 60,248,579 51,037,805 18.05%
Provision for Income Taxes 16,407,464 14,008,349 17.13%
------------ ------------ -------
Operating Income(1) 43,841,115 37,029,456 18.40%
Realized Investment Gains,
Net of Tax 2,201,903 887,993 147.96%
------------ ------------ -------
Net Income $ 46,043,018 $ 37,917,449 21.43%
============ ============ =======
Operating Income Per Share(1)
Basic $ 0.55 $ 0.47 17.51%
============ ============ =======
Diluted $ 0.54 $ 0.46 17.62%
============ ============ =======
Net Income Per Share
Basic $ 0.58 $ 0.48 20.52%
============ ============ =======
Diluted $ 0.57 $ 0.47 20.64%
============ ============ =======
Average Number of Shares
Outstanding
Basic 80,068,036 79,468,821
============ ============
Diluted 80,590,799 80,065,414
============ ============
Three Months Ended
June 30,
----------------------------------------
2004 2003 Change
------------ ------------ -------
Premiums and Policy Charges $139,202,424 $129,845,410 7.21%
Net Investment Income 22,673,259 21,337,240 6.26%
Other Income 261,387 754,566 (65.36%)
------------ ------------ -------
Total Revenues 162,137,070 151,937,216 6.71%
Total Expenses 136,292,367 128,307,415 6.22%
------------ ------------ -------
Income Before Provision
for Income Taxes 25,844,703 23,629,801 9.37%
Provision for Income Taxes 6,533,198 6,497,282 0.55%
------------ ------------ -------
Operating Income(1) 19,311,505 17,132,519 12.72%
Realized Investment Gains,
Net of Tax 1,254,626 2,055,302 (38.96%)
------------ ------------ -------
Net Income $ 20,566,131 $ 19,187,821 7.18%
============ ============ =======
Operating Income Per Share(1)
Basic $ 0.24 $ 0.22 12.11%
============ ============ =======
Diluted $ 0.24 $ 0.21 12.29%
============ ============ =======
Net Income Per Share
Basic $ 0.26 $ 0.24 6.60%
============ ============ =======
Diluted $ 0.26 $ 0.24 6.78%
============ ============ =======
Average Number of Shares
Outstanding
Basic 80,039,000 79,605,514
============ ============
Diluted 80,531,351 80,226,873
============ ============
(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.
For unaudited quarterly financial statements for the second quarter and six months ended June 30, 2004, along with additional information, click here: http://www.irinfo.com/alfa/2q04fs.pdf. 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion