Allstate Financial Corporation Reports Fourth Quarter and Fiscal Year Profit.Business Editors MCLEAN, Va.--(BUSINESS WIRE)--Feb. 2, 2001 Allstate 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 earnings of $3,199,000 or $.29 per share for the three months ended December 31, 2000, compared to a loss of $1,813,159 or $0.78 per share for the comparable period in 1999. The Company reported a profit of $2,845,681 or $0.62 per share for the year ended December 31, 2000 compared to a loss of $17,251,090 or $7.42 per share for year ended December 31,1999. The results for the fourth quarter included a significant positive impact resulting from the acquisition of Harbourton Financial Corp. ("Harbourton"). The Company recognized an income tax benefit of $3,031,311 related to the Company's 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. carryforwards and the projected profitable operations of the merged companies. During the quarter the Company generated 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. of $167,689, reflecting the inclusion of Harbourton's income from operations for the last two months of the quarter. J. Kenneth McLendon, President, noted "Allstate recognized during the quarter the initial benefits of combining the earning potential from Harbourton's business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets with Allstate's tax loss carryforwards tax loss carryforward See carryforward. . He noted that the Board and management are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op the Company's operating results will improve in future periods." During the quarter the Company successfully completed the exchange of 94% of its 10% Convertible Subordinated Notes due September 30, 2003 ("the Notes") and the acquisition of Harbourton. The number of common shares outstanding at December 31, 2000 increased to 15,184,164 reflecting the issuance of 5,168,388 shares for the Note exchange and 7,516,160 shares to complete the acquisition of Harbourton. The Company's book value at December 31, 2000 increased to $1.00 per share as compared to $0.15 at December 31, 1999. Total assets grew to $17.6 million at December 31, 2000 principally comprised 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 $15.1 million as a result of the Note exchange and acquisition of Harbourton. David W. Campbell, chairman of the board, stated "Subsequent to the significant 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). during 2000, we enter 2001 with a strong balance sheet and a proven business plan that will enable the Company to use its net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. and build shareholder value." Allstate is a diversified diversified (di·verˑ·s finance institution principally providing loans for builders and developers for residential land acquisition, development and construction financing for residential single family homes, townhouses, condominiums and the conversion of rental properties for sale. 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 December 31,
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2000 1999
---- ----
Total Assets $ 17,595.5 $ 7,672.4
Total Liabilities 2,479.9 7,330.0
Shareholders' Equity 15,115.7 342.4
Book Value Per Share $ 1.00 $ 0.15
Common Shares Outstanding 15,184.2 2,324.6
Three Months Ended Twelve Months Ended
December 31, December 31,
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2000 1999 2000 1999
---- ---- ---- ----
Total Revenues $ 893.1 $ 456.9 $ 1,465.1 $ 3,621.3
Expenses
Compensation 329.1 272.0 727.1 2,058.9
General &
Administrative 318.8 762.3 1,168.8 3,339.6
Interest 77.6 262.4 594.1 1,293.2
Provision for
Loss (Recovery) - 1,001.8 (839.3) 10,177.8
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Total Expenses 725.5 2,298.5 1,650.7 16,869.5
Income (Loss)
Before Income
Tax 167.7 (1,841.6) (185.6) (13,248.2)
Income Tax
(Benefit) (3,031.3) (28.4) (3,031.3) 4,002.9
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Net Income
(Loss) $ 3,199.0 $ (1,813.2) $ 2,845.7 $(17,251.0)
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Income (Loss)
Per Common
Share $ 0.29 $ (0.78) $ 0.62 $ 7.42
Average Shares
Outstanding 11,047.9 2,324.6 4,569.9 2,324.6
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