Alleghany Corporation Announces First Quarter Earnings.Business Editors NEW YORK--(BUSINESS WIRE)--April 25, 2002 Net earnings of Alleghany Corporation (NYSE-Y) in the first quarter of 2002 were $25.8 million, or $3.51 per share of common stock, compared to net earnings of $455.4 million, or $61.75 per share of common stock, in the first quarter of 2001, John J. Burns, Jr., President and chief executive officer of Alleghany, announced today. The 2002 first quarter results include an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain of $23.3 million, or approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3.17 per share, on the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of 1.9 million shares of common stock of Burlington Burlington, town, Canada Burlington, town (1991 pop. 129,575), SE Ont., Canada, on Lake Ontario. First settled (1798) by Mohawk Loyalist Joseph Brandt, Burlington's economy was built on the shipment of wheat, lumber, and quarried rock by waterway. Northern Santa Fe Santa Fe, city, Argentina Santa Fe, city (1991 pop. 341,000), capital of Santa Fe prov., NE Argentina, a river port near the Paraná, with which it is connected by canal. for aggregate cash proceeds of $55.3 million. First quarter 2001 results include an after-tax gain from the disposition of Alleghany Asset Management of approximately $474.8 million, or approximately $64.38 per share, excluding certain expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the closing of the transaction. Excluding the 2002 gain on the disposition of the shares of Burlington Northern Santa Fe common stock and the 2001 gain on the disposition of Alleghany Asset Management, net earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the were $2.5 million, or $0.34 per share, in the 2002 first quarter, compared to net losses from continuing operations of $8.6 million, or $1.16 per share, in the 2001 first quarter. World Minerals recorded pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta earnings of $2.9 million in the 2002 first quarter compared with pre-tax earnings of $1.1 million in the 2001 first quarter, reflecting results of businesses acquired in 2001, cost controls and reduced interest expense. Revenues in the 2002 first quarter were $49.4 million, including approximately $2.0 million from businesses acquired in 2001, compared to $50.1 million in the first quarter of 2001, reflecting reduced demand in the U.S. economy. Alleghany Insurance Holdings, a holding company for Alleghany's insurance operations, consisting principally of Capitol Capitol, seat of the U.S. Congress Capitol, seat of the U.S. government at Washington, D.C. It is the city's dominating monument, built on an elevated site that was chosen by George Washington in consultation with Major Pierre L'Enfant. Transamerica Corporation Transamerica Corporation is a holding company for various life insurance companies and investment firms doing business primarily in the United States. Transamerica began as a holding company controlled by A. P. which was acquired on January January: see month. 4, 2002, had revenues in the first quarter of 2002 of $30.7 million, reflecting strong markets for casualty insurance generally throughout Midwestern Mid·west or Middle West A region of the north-central United States around the Great Lakes and the upper Mississippi Valley. It is generally considered to include Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, Missouri, Kansas, and marketing areas. Operating with a combined ratio on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis of 100.4% during the quarter, AIHL AIHL Australian Ice Hockey League recorded pre-tax earnings of $1.2 million. These earnings reflect pre-tax investment income of $3.3 million and were after the realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. of $1.65 million in investment losses incurred in restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). Capitol Transamerica's investment portfolio and a charge of $0.5 million from amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , principally agency force, as required under GAAP purchase accounting rules for acquisitions made after January 1, 2002. Alleghany Insurance Holdings recorded pre-tax earnings of $3.1 million from continuing operations in the first quarter of 2001, principally reflecting investment income. Heads & Threads recorded pre-tax earnings of $0.5 million in the 2002 first quarter, compared with a pre-tax loss of $3.9 million in the 2001 first quarter, primarily reflecting operating cost control measures and reduced interest expense. Revenues in the 2002 first quarter were $27.9 million compared with $33.8 million in the first quarter of 2001, reflecting reduced demand in the U.S. economy. Net gains on investment transactions from continuing operations after taxes in the first quarter of 2002 totalled $22.5 million, or $3.06 per share, compared with $0.2 million, or $.03 per share, in the corresponding 2001 period, excluding the gain on the disposition of Alleghany Asset Management. Highlights are as follows (in millions, except for shares and per share amounts):
Three Months Ended
March 31
2002 2001
---- ----
Revenues from continuing operations $150.7 $875.8
Earnings from continuing operations,
before taxes 39.2 763.1
Earnings from continuing operations, net
25.8 466.2
(Losses) from discontinued operations,
net (Alleghany Asset Management and
Alleghany Underwriting) -- (10.8)
Net earnings 25.8 455.4
Basic earnings per share of common
stock from continuing operations (a) 3.51 63.21
Basic (losses) per share of common
stock from discontinued operations
(Alleghany Asset Management and
Alleghany Underwriting)(a) -- (1.46)
Basic earnings per share of
common stock (a) 3.51 61.75
Diluted earnings per share of common
stock from continuing operations (a) 3.48 62.28
Diluted (losses) per share of common
stock from discontinued operations
(Alleghany Asset Management and
Alleghany Underwriting) (a) -- (1.44)
Diluted earnings per
share of common stock (a) 3.48 60.84
Average number of outstanding shares of
common stock (a) 7,350,235 7,374,579
(a) Adjusted to reflect the dividend of common stock declared in March
2002.
The comparative contributions to earnings from continuing operations
before taxes made by Alleghany's operating units World Minerals
(industrial minerals business), Alleghany Insurance Holdings
(insurance businesses ) and Heads & Threads (industrial fasteners
business), as well as by Alleghany's parent company and other
operations, were as follows (in millions):
Three Months Ended
March 31
--------
2002 2001
---- ----
World Minerals $2.9 $1.1
Alleghany Insurance Holdings 1.2 3.1
Heads & Threads 0.5 (3.9)
Parent company and other 34.6 762.8
---- -----
$39.2 $763.1
===== ======
On a per-share, after-tax basis, the foregoing earnings contributions
may be broken down as follows:
2002
---- Discontinued
operations
(Alleghany
Asset
Management
Total and
Parent from Alleghany
World Heads & co. and continuing Under-
Minerals AIHL Threads other operations writing) Total
-------- ---- ------- ------- ---------- -------- -----
Operations $0.16 $0.37 $0.04 $(0.12) $0.45 -- $0.45
Security
transactions -- (0.15) -- 3.21 3.06 -- 3.06
----- ------- ------- ------ ------ ------- ------
Total $0.16 $0.22 $0.04 $3.09 $3.51 -- $3.51
==== ==== ==== ==== ==== ===== ====
2001
----
Operations $0.08 $0.29 $(0.31) $(1.26) $(1.20) $(1.52) $(2.72)
Gain on
sale of
Alleghany
Asset
Management -- -- -- 64.38 64.38 -- 64.38
Security
transactions -- -- -- 0.03 0.03 0.06 0.09
----- ------- ------- ------ ------ ------- ------
Total $0.08 $ 0.29 $(0.31) $63.15 $63.21 $(1.46) $61.75
===== ======= ======= ====== ====== ======= ======
As of March 31, 2002, Alleghany beneficially owned approximately 16.0 million shares, or 4.2 percent, of the outstanding common stock of Burlington Northern Santa Fe Corporation, which had an aggregate market value on that date of approximately $482.9 million, or $30.18 per share, compared with a market value on December December: see month. 31, 2001 of $512.1 million, or $28.53 per share. The aggregate cost of such shares is approximately $181.8 million, or $11.36 per share. Alleghany has previously announced that it may purchase shares of its common stock in open market transactions from time to time. In the first quarter of 2002, Alleghany purchased an aggregate of 21,127 shares of its common stock for approximately $3.9 million, at an average cost of about $182.79 per share. As of March 31, 2002, Alleghany had 7,365,842 shares of common stock outstanding (which includes the stock dividend declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. in March 2002). Alleghany common stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. per share at March 31, 2002 was $191.64 per share, a 1.3 percent increase from common stockholders' equity per share of $189.20 as of December 31, 2001 (both as adjusted for the stock dividend declared in March 2002).
ALLEGHANY CORPORATION AND SUBSIDIARIES
COMBINING BALANCE SHEET
WORLD HEADS & CORPORATE 03/31/02 12/31/01
ASSETS MINERALS THREADS AIH ACTIVITIES COMBINED COMBINED
Investments:
fixed $0 $0 $132,695 $0 $132,695 $0
equities 0 0 177,333 409,093 586,426 550,826
short term 2,673 0 70,158 572,923 645,754 796,511
----- -- ------- -------- -------- -------
2,673 0 380,186 982,016 1,364,875 1,347,337
Cash 13,300 508 0 5,110 18,918 15,717
Notes
receivable 12,075 0 933 79,460 92,468 91,536
Accounts
receivable 41,428 17,689 1,663 1,994 62,774 57,161
Reinsurance
receivable 0 0 183,215 0 183,215 0
Property and
equipment,
net 165,356 4,671 4,684 206 174,917 169,622
Inventory 28,614 42,230 0 0 70,844 71,169
Goodwill and
other
intangibles,
net 47,040 6,936 62,784 0 116,760 49,708
Other assets 7,645 3,582 61,237 54,575 127,039 72,755
------- ------ ------- ------- -------- ------
$318,131 $75,616 $694,702 $1,123,361 $2,211,810 $1,875,005
-------- ------- -------- ---------- ---------- ----------
LIABILITIES
AND EQUITY
Taxes payable $0 $185($205,000) $236,458 $31,643 $90,209
Losses and LAE 0 0 272,859 0 272,859 0
Other
liabilities 51,549 12,817 14,435 44,177 122,978 103,595
Unearned
premiums 0 0 60,907 0 60,907 0
Long-term
debt of
parent 0 0 0 0 0 0
Long-term
debt of
subs 57,669 18,315 0 104,000 179,984 181,856
Net deferred
tax
liability 13,879 (10,117) 37,457 90,627 131,846 108,763
------ -------- ------ ------ ------- -------
123,097 21,200 180,658 475,262 800,217 484,423
Stockholders'
equity 195,034 54,416 514,044 648,099 1,411,593 1,390,582
------- ------ ------- ------- --------- ---------
$318,131 $75,616 $694,702 $1,123,361 $2,211,810 $1,875,005
-------- ------- -------- ---------- ---------- ----------
ALLEGHANY CORPORATION
COMBINING STATEMENTS OF EARNINGS
(dollars in thousands)
(unaudited)
THREE MONTHS ENDED MARCH 31, 2002
----------------------------------------------------
WORLD HEADS & CORPORATE
MINERALS AIH THREADS ACTIVITIES COMBINED
----------------------------------------------------
Revenues
Interest,
dividend and
other income $0 $3,300 $0 $6,227 $9,527
Net insurance
premiums earned 0 29,023 0 0 29,023
Net fastener sales 0 0 27,932 0 27,932
Net mineral and
filtration
sales 49,443 0 0 0 49,443
Net gain on
sale of
subsidiary 0 0 0 0 0
Net gain (loss)
on investments 0 (1,649) 0 36,242 34,593
------ ------ ------ ----- -------
Total revenues 49,443 30,674 27,932 42,469 150,518
Costs and expenses
Commissions and
brokerage expenses 0 5,493 0 0 5,493
Salaries,
administrative
and other
operating
expenses 9,843 5,077 6,082 1,124 22,126
Losses and
loss adjustment
expenses 0 18,887 0 0 18,887
Cost of goods
sold - fasteners 0 0 21,085 0 21,085
Cost of
mineral and
filtration
sales 36,240 0 0 0 36,240
Interest expense 431 0 263 979 1,673
Corporate
administration 0 0 0 5,763 5,763
------ ------ ------ ----- -------
Total costs
and expenses 46,514 29,457 27,430 7,866 111,267
------ ------ ------ ----- -------
Earnings from
continuing
operations,
before taxes $2,929 $1,217 $502 $34,603 39,251
======= ====== ==== =======
Income taxes 13,443
------
Earnings from
continuing
operations 25,808
(Loss) from
discontinued
operations,
net of tax 0
------
Net earnings $25,808
=======
THREE MONTHS ENDED MARCH 31, 2001
---------------------------------------------------
WORLD HEADS & CORPORATE
MINERALS AIH THREADS ACTIVITIES COMBINED
---------------------------------------------------
Revenues
Interest,
dividend and
other income ($101) $3,126 $0 $12,657 $15,682
Net insurance
premiums earned 0 0 0 0 0
Net fastener sales 0 0 33,763 0 33,763
Net mineral and
filtration
sales 50,158 0 0 0 50,158
Net gain on
sale of
subsidiary 0 0 0 775,823 775,823
Net gain (loss)
on investments 0 0 0 377 377
------ ------ ------ ----- -------
Total revenues 50,057 3,126 33,763 788,857 875,803
Costs and expenses
Commissions and
brokerage expenses 0 0 0 0 0
Salaries,
administrative
and other
operating
expenses 9,105 0 9,488 405 18,998
Losses and
loss adjustment
expenses 0 0 0 0 0
Cost of goods
sold - fasteners 0 0 27,087 0 27,087
Cost of
mineral and
filtration
sales 38,913 0 0 0 38,913
Interest expense 960 0 1,076 1,978 4,014
Corporate
administration 0 0 0 23,731 23,731
------ ------ ------ ------ -------
Total costs
and expenses 48,978 0 37,651 26,114 112,743
------ ------ ------ ------ -------
Earnings from
continuing
operations,
before taxes $1,079 $3,126 ($3,888) $762,743 763,060
======= ====== ==== =======
Income taxes 296,863
-------
Earnings from
continuing
operations 466,197
-------
(Loss) from
discontinued
operations,
net of tax (10,788)
--------
Net earnings $455,409
========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion