Alfa Corporation reports improved 1996 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)--Feb. 4, 1997--Alfa Corporation (Nasdaq/NM:ALFA) today announced results for the fourth quarter and full year ended December December: see month. 31, 1996. 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 1996, which excludes realized investment gains, was $30,364,283, or $0.74 per share, compared with 1995 operating income of $21,599,041, or $0.53 per share. Net income for 1996 was $32,189,215, or $0.79 per share, compared with $22,317,951, or $0.55 per share, in 1995. Total revenues increased 9.3% to $396.3 million and premium revenue for 1996 increased 9.4% to $337.2 million. For the fourth quarter of 1996, the Company reported operating income of $10,726,046, or $0.26 per share compared with an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $5,274,504, or $0.13 per share, in the similar period of 1995. Net income for the fourth quarter of 1996 was $9,166,361, or $0.22 per share, compared with a net loss of $5,481,080, or $0.13 per share, a year ago. Premium revenue for the quarter increased 13.9% to $87.0 million. Results for the year-earlier periods were affected by the impact of Hurricane Opal Hurricane Opal was a major hurricane that formed in the Gulf of Mexico in September 1995. [1] Opal was the 9th hurricane of the abnormally active 1995 Atlantic hurricane season. , which was the largest catastrophic event in the Company's history. Alfa's Chairman, Goodwin L. Myrick, said "1996 was a year of increased pressure on Alfa's bottom line. Although storm severities were much improved over 1995, which included hurricane Opal, storm frequencies remained at levels that are unprecedented compared to years preceding 1988. The company has taken steps to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. the
impact of this through its recently announced catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). plan.
Consequently, future earnings of Alfa Corporation will be less dependent
on storm activity as in the past several years. We are now aggressively
focusing on our core business fundamentals business fundamentalsThe 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 , primarily, non storm loss frequency, severity, and pricing and on controlling expenses. We have confidence in our abilities to manage our business and are very optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about 1997." 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. -0-
ALFA CORPORATION
FINANCIAL HIGHLIGHTS
Year Ended
December 31,
1996 1995 % Change
Premiums and Policy Charges $337,186,418 $308,088,969 9.44%
Net Investment Income 54,194,334 50,923,107 6.42%
Realized Investment Gains 2,807,588 1,106,016 153.85%
Other Income 2,147,688 2,645,243 (18.81%)
Total Revenues 396,336,028 362,763,335 9.25%
Total Expenses 350,482,168 331,770,631 5.64%
Income Before Provision
for Income Taxes 45,853,860 30,992,704 47.95%
Provision for Income Taxes 13,664,645 8,674,753 57.52%
Net Income $ 32,189,215 $ 22,317,951 44.23%
Net Income Per Share $0.79 $0.55 44.23%
Operating Income(1) $ 30,364,283 $ 21,599,041 40.58%
Operating Income Per Share $0.74 $0.53 40.58%
Average Number of Shares
Outstanding 40,786,561 40,785,912
Three Months Ended
December 31,
1996 1995 % Change
Premiums and Policy Charges $ 87,036,674 $ 76,437,035 13.87%
Net Investment Income 13,760,853 12,986,201 5.97%
Realized Investment Gains (2,399,515) (317,810) 655.02%
Other Income 532,280 651,090 (18.25%)
Total Revenues 98,930,292 89,756,516 10.22%
Total Expenses 85,682,721 98,818,432 (13.29%)
Income Before Provision
for Income Taxes 13,247,571 (9,061,916) 246.19%
Provision for Income Taxes 4,081,210 (3,580,836) 213.97%
Net Income $ 9,166,361 $ (5,481,080) 267.24%
Net Income Per Share $0.22 ($0.13) 267.24%
Operating Income(1) $ 10,726,046 $ (5,274,504) 303.36%
Operating Income Per Share $0.26 ($0.13) 303.36%
Average Number of Shares
Outstanding 40,786,712 40,785,912
(1) Operating income excludes realized investment gains and
related taxes.
CONTACT: Alfa Corporation, Montgomery Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. Price, 334/288-3900 |
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