Amwest Insurance Group Inc. Reports Third-Quarter Results.Business Editors CALABASAS, Calif.--(BUSINESS WIRE)--Nov. 14, 2000 Amwest Insurance Group Inc. (AMEX AMEX See: American Stock Exchange :AMW AMW America's Most Wanted (TV show) AMW Air Mobility Wing AMW Amphibious Warfare AMW Ask Me Why (Beatles song) AMW Angewandte Medienwissenschaft (German: Applied Media Studies) ) (PCX (1) A bitmapped graphics file format that handles monochrome, 2-bit, 4-bit, 8-bit and 24-bit color and uses RLE to achieve compression ratios of approximately 1.1:1 to 1.5:1. Images with large blocks of solid colors compress best under the RLE method. See PC Paintbrush. :AMW) today reported a net loss of $3,127,000, or 73 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the third quarter ended Sept. 30, 2000, as compared with a net loss of $2,746,000, or 64 cents per share, for the corresponding prior-year period. Operating results, which excludes net realized investment gains, showed a loss of $3,917,000, or 91 cents per share, compared with a loss of $2,753,000, or 64 cents per share, for the corresponding 1999 period. For the nine months ended Sept. 30, 2000, the net loss was $14,316,000, or $3.31 per share, compared with net income of $1,359,000, or 31 cents per share, for the corresponding 1999 period. The 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 $15,708,000, or $3.63 per share, was compared with 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 $8,000 for the corresponding prior-year period. 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. was $42,612,000 at Sept. 30, 2000, or $9.85 per share including unrealized after-tax investment losses of $1,035,000, compared with stockholders' equity of $56,802,000 at Dec. 31, 1999, or $13.12 per share including unrealized after-tax investment losses of $1,186,000. Amwest is a Calabasas-based insurance holding company underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. surety An individual who undertakes an obligation to pay a sum of money or to perform some duty or promise for another in the event that person fails to act. surety n. and property and casualty insurance through Amwest Surety Insurance Co., Condor Insurance Co. and Far West Insurance Co. Certain statements contained in this news release regard matters that are not historical facts and are 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. . Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include but are not limited to: the ineffectiveness of underwriting and other changes made by management, a deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in premiums written or losses incurred in the company's surety and other specialty businesses, the ability to achieve increased percentage writings of commercial surety and court products, the lack of adherence by branch personnel to company underwriting guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , failure of the company to improve its leverage and operating performance which could result in a reduction in the ratings from A.M. Best and other industry rating agencies, the ability of the company to obtain a waiver The voluntary surrender of a known right; conduct supporting an inference that a particular right has been relinquished. The term waiver is used in many legal contexts. or amendment regarding a covenant included in the company's revolving bank credit agreement, failure of the company to raise additional capital or to successfully consummate a strategic alliance, a reduction in the investment yield earned on the company's investment portfolio, or general economic decline. The company undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.
AMWEST INSURANCE GROUP INC. AND SUBSIDIARIES
(Amounts in thousands, except per-share data)
Consolidated Statements of Operations
Three months ended Nine months ended
Sept. 30, Sept. 30,
2000 1999 2000 1999
Gross premiums written $39,158 $35,969 $119,105 $104,146
Net premiums earned $25,146 $27,732 $ 83,053 $ 81,711
Net investment income 1,540 1,595 4,992 5,069
Net realized investment gains 1,198 10 2,109 2,047
Commissions and fees 443 323 1,767 1,452
Total revenue 28,327 29,660 91,921 90,279
Net losses and loss
adjustment expenses 16,701 14,330 58,492 33,419
Policy acquisition costs 11,991 15,543 41,052 41,466
General operating costs 3,269 3,285 11,083 11,782
Interest expense 602 593 1,852 1,640
Total expenses 32,563 33,751 112,479 88,307
Income (loss) before income
taxes (4,236) (4,091) (20,558) 1,972
Provision for income taxes (1,109) (1,345) (6,242) 613
Net income (loss) $(3,127) $(2,746) $(14,316) $ 1,359
Net earnings (loss) per
common share:
Basic $ (0.73) $ (0.64) $ (3.31) $ 0.31
Diluted $ (0.73) $ (0.64) $ (3.31) $ 0.31
Operating earnings (loss)
per common share:
Basic $ (0.91) $ (0.64) $ (3.63) $ 0.00
Diluted $ (0.91) $ (0.64) $ (3.63) $ 0.00
Consolidated Balance Sheet Information
Sept. 30, Dec. 31,
2000 1999
Total assets $251,807 $241,695
Total liabilities 209,195 184,893
Total stockholders' equity 42,612 56,802
Book value per share $ 9.85 $ 13.12
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