Bankers Life Holding Corp. reports record fourth quarter 1994 operating results.CHICAGO--(BUSINESS WIRE)--Feb. 14, 1995--Bankers Life Holding Corp. (NYSE NYSE See: New York Stock Exchange : BLH BLH Baldwin-Lima-Hamilton (locomotive manufacturer) BLH Bellingham, Washington (border patrol station) BLH Bidirectional Long Haul ) today reported fourth quarter 1994 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 (excluding realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. and trading income), of $36.6 million, a 10 percent increase over operating earnings of $33.4 million for the fourth quarter of 1993. On a per share basis, operating earnings rose 13 percent to 69 cents, compared to operating earnings per share of 61 cents for the fourth quarter of 1993. Operating earnings for the year ended December 31, 1994 increased 25 percent to $135.9 million, compared to pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma operating earnings of $109.0 million for the year 1993. Operating earnings per share increased 27 percent to $2.53, compared to pro forma operating earnings per share of $2.00 for the year 1993. Results in 1994 include a non-recurring gain of $8.1 million, or 15 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. , in the third quarter of 1994. Pro forma 1993 results give effect as if Bankers' March 1993 initial public offering and recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. occurred January 1, 1993. President and Chief Executive Officer Barth T. Murphy said, ``Our second year as a public company brought many new highlights and accomplishments. We saw the eighth consecutive quarter of record operating earnings. Our return on equity once again exceeded 25 percent. During 1994 we increased our dividend by 650 percent and completed almost 90 percent of the 2 million share buyback program announced in April. We sold 90,000 Medicare supplement policies in 1994, opening up those households for cross-selling opportunities. Seizing upon these opportunities, our career agency force increased new business premiums by 29 percent for long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. products, 23 percent for annuities and 11 percent for individual life.'' Premiums. Compared to the fourth quarter of 1993, Medicare supplement collected premiums were up 3 percent to $153.9 million, annuity collected premiums rose 38 percent to $89.6 million, and long-term care insurance collected premiums increased by 16 percent to $34.0 million. Net income. Fourth quarter 1994 net income of $35.6 million, or 67 cents per share, included net realized losses Realized Loss A loss recognized when assets are sold for a price lower than the original purchase price. Notes: A portion of the realized loss may be applied against a capital gain or realized profit to reduce taxes. of $0.7 million, or 1 cent per share and trading losses The following contains a list of trading losses which eventually forced major corporations to go bankrupt or restructure parts of their organisation. This list is not exhaustive. of $0.3 million, or 1 cent per share. This compares to fourth quarter 1993 net income of $37.6 million, or 69 cents per share, which included net realized gains of $2.6 million, or 5 cents per share, trading income of $4.7 million, or 9 cents per share and an extraordinary charge of $3.1 million, or 6 cents per share, related to the early retirement of $20.0 million of outstanding debt. Total year 1994 net income of $133.6 million, or $2.49 per share, included net realized losses of $1.2 million, or 2 cents per share, and trading losses of $1.1 million, or 2 cents per share. This compares to pro forma net income for the year ended December 31, 1993 of $136.1 million, or $2.49 per share, which included net realized gains of $9.4 million, or 17 cents per share, trading income of $20.8 million, or 38 cents per share and an extraordinary charge of $3.1 million, or 6 cents per share. Realized gains and trading income often fluctuate from quarter to quarter. Assets. Total assets at December 31, 1994 were $3.9 billion. There were no significant nonperforming investments at December 31, 1994. Approximately 5 percent of investments were high-yield bonds High-yield bond See: Junk bond high-yield bond See junk bond. and less than 1 percent were mortgages. Key ratios. Before considering the mark-to-market adjustment, 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. at December 31, 1994, was $598.7 million ($11.34 per common share), up 12 percent from year-end 1993 shareholders' equity of $532.8 million ($9.77 per common share). Including the mark-to market adjustment, shareholders' equity at December 31, 1994, was $478.2 million ($9.06 per common share), down 12 percent from year-end 1993 shareholders' equity of $540.9 million. The general market decline in bond values has caused our mark-to-market adjustment for fixed maturity investments to decrease shareholders' equity by $128.6 million in 1994 while our stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program caused a decline of $35.7 million. The operating return on average common equity was 27 percent for the year 1994. At December 31, 1994, the debt/equity ratio Debt/Equity Ratio A measure of a company's financial leverage calculated by dividing long-term debt by shareholders equity. It indicates what proportion of equity and debt the company is using to finance its assets. was .56 to 1. Bankers Life Holding Corp., headquartered in Chicago, IL., is a specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. insurance holding company. Bankers' principal subsidiary, Bankers Life and Casualty Bankers Life and Casualty is primarily a health insurance company in the United States. It was founded in 1879 and was previously known as White Cross. It was formerly owned by millionaire investor John D. Company, is a leading provider of Medicare supplement, long-term care and other individual health, life, annuity and group insurance products, which it markets through career agents. -0-
BANKERS LIFE HOLDING CORPORATION
(NYSE: BLH)
Condensed Consolidated Statement of Operations
(in millions, except per-share amounts)
Quarter Ended Dec. 31: Year Ended Dec. 31:
1994 1993 1994 1993 (1)
(Actual) (Actual) (Actual (Pro Forma)
Revenues $360.1 $374.7 $1,437.9 $1,459.1 Earnings from insurance operations (operating earnings) 36.6 33.4 135.9 109.0 Trading income (loss), net (0.3) 4.7 (1.1) 20.8 Realized gains (losses), net (0.7) 2.6 (1.2) 9.4 Extraordinary charge on extinguishment of debt, net of taxes _ _ 3.1 _ _ 3.1 Net income $35.6 $37.6 $ 133.6 $ 136.1 Per common share-primary and fully diluted: Weighted average shares 52.9 54.6 53.6 54.6 Earnings from insurance operations (operating earnings) $0.69 $0.61 $2.53 $2.00 Trading income (loss), net (0.01) 0.09 (0.02) 0.38 Realized gains (losses), net (0.01) 0.05 (0.02) 0.17 Extraordinary charge on extinguishment of debt, net of taxes _ _ 0.06 _ _ 0.06 Net income $0.67 $0.69 $2.49 $2.49 (1) As if the initial public offering and recapitalization occurred Jan. 1, 1993. Additional statistical data distributed to analysts is available upon request to the Company's investor contact. CONTACT: Bankers Life Holding Corp., Chicago Patrick Mitchell, 312/396-7099 |
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