Allstate Financial Corporation Reports First Quarter Earnings Of $532,419.Business Editors MCLEAN McLean, city (1990 pop. 38,168), Fairfax co., N Va., a suburb of Washington, D.C. Manufacturing includes foods, satellite components, and computer and telecommunications equipment. , Va.--(BUSINESS WIRE)--April 26, 2001 Allstate This article is about the American insurance company. For the line of automobiles, see Allstate (automobile). The Allstate Corporation NYSE: ALL is the largest publicly held personal lines insurer in the United States. Financial Corporation ("Allstate" or the "Company") (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : ASFN ASFN Arizona Sports Fans Network ASFN Axel Schultz Fight Night (German band) ) today reported net income of $532,418 or $.04 per share for the three months ended March 31, 2001, compared to a loss of $323,871 or $0.14 per share for the comparable period in 2000. Total revenues for the three months ended March 31, 2001 were $929,084 compared to $203,713 for the comparable period in 2000. On a weighted average basis, there were 15,184,164 and 2,324,616 shares of common stock outstanding during the three months ended March 31, 2001 and March 31, 2000, respectively. The significant earnings generated from the merger with Harbourton Financial Corp. in November of 2000, the reduction in interest expense associated with the conversion of the Company's convertible subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". to common stock in late 2000, and the benefit of the Company's net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. all contributed to the material improvement in net income for the quarter. J. Kenneth McLendon, president, noted "The results of the Company reflect our seasoned loan portfolio coupled with the strong residential real estate markets served by the Company. I remain confident our loans are in projects and localities that will not be significantly impacted by the current pause in the national economy and selected real estate markets." Total assets were $17.0 million at March 31, 2000, principally composed of the portfolio of loans receivable acquired in the Harbourton acquisition. Total shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. increased to $15.6 million from $15.1 million at December 31, 2000 as a result of the net income during the quarter. David W. Campbell, chairman of the board, stated "Allstate is successfully achieving the expected benefits of combining Harbourton's operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before with Allstate's tax loss carryforwards tax loss carryforward See carryforward. ." He noted that "the Board and Management expect continued positive results from this combination." The Company's primary business is originating loans to builders and developers of residential projects. The loans include financing for acquisition, development and construction of residential single family homes, townhouses and condominiums. The Company continues to service a portfolio of previously originated commercial finance and purchased receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed . This press release may contain various "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. ," within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , that represent the Company's expectations or beliefs concerning future events. Such forward-looking statements are about matters that are inherently subject to risks and uncertainties. Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include changes in the timing and amount of earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin which may be originated by the Company, changes in revenue and expense trends (including trends affecting charge-offs) of the Company, changes in the Company's markets and changes in the economy (particularly in the markets served by the Company). Such factors are discussed in detail in the Company's filings with the U.S. Securities and Exchange Commission.
Allstate Financial Corporation
8180 Greensboro Drive
McLean, Virginia 22102
Selected Financial Data:
(000's) except per share data
As of March 31,
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2001 2000
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Total Assets $ 16,971.7 $ 6,513.6
Total Liabilities 1,359.6 6,492.2
Shareholders' Equity 15,612.1 21.4
Book Value Per Share $ 1.03 $ 0.01
Common Shares Outstanding 15,184.2 2,324.6
Three Months Ended March 31,
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2001 2000
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Total Revenues $ 929.1 $ 203.7
Expenses
Compensation 292.6 168.9
General & administrative 97.5 217.3
Interest 37.3 141.3
Provision for loss (recovery) 0 0
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Total Expenses 427.4 527.6
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Income (loss) before income tax 501.7 (323.8)
Income tax 192.0 0
Income tax (benefit) (222.8) 0
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Net income (loss) $ 532.4 $ (323.9)
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Income (loss) per common share $ 0.04 $ (0.14)
Weighted average shares outstanding 15,184.2 2,324.6
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