CAP RX ANNOUNCES FINANCIAL RESULTS
CAP RX ANNOUNCES FINANCIAL RESULTS ALBUQUERQUE, N.M., Feb. 14 /PRNewswire/ -- Cap Rx, Ltd.
(NASDAQ: CPXLF) announced today its financial results for the three- and nine-month periods ended Dec. 31, 1991. For the three-month period ended Dec. 31, 1991 Cap Rx., through its wholly-owned subsidiary which is doing business as Living Benefits, purchased $11.4 million of life insurance policies at a cost of $7.7 million. This brings the total portfolio of insurance policies, net of maturities, to a face value of $17.4 million at a cost of $11.4 million. The difference between the face value and the cost of the portfolio of $6.0 million represents profit that the company will realize in the future as the policies mature. Compared to Sept. 30, 1991, the face value of policies in the portfolio has increased 168 percent. Revenues from maturities for the three and nine months periods ended Dec. 31, 1991 were $517,000 and $1,142,000 which yielded gross profits of $208,000 and $477,000 respectively. As Living Benefits was acquired April, 1991, there are no prior year comparisons.
Since the company has only been purchasing policies for nine months and policies generally mature from six to 24 months after purchase, the company has not yet begun experiencing maturities at a level adequate to yield a gross profit which would offset the general and administrative expenses. Consequently, operating income for the three-month period ended Dec. 31, 1991 was a loss of $59,000 as compared to a loss of $66,000 for the same period last year. Net interest expense was $529,000 for the three months ended Dec. 31, 1991 compared to interest income of $165,000 for the same period last year. This $694,000 increase in expense is attributable to interest expense on $55 million of 9.5 percent coupon Convertible Debentures issued in September, 1991. The interest expense was partially offset by interest income attributable to the investment of the net proceeds from such Debentures. Net loss for the three months ended Dec. 31, 1991 was $588,000 or $.11 per share compared to net earnings of $99,000, or $.02 per share for the same period of last year. For the nine months ended Dec. 31, 1991, operating loss was $234,000 compared to $138,000 for last year, net interest expense was $456,000 compared to interest income of $268,000 last year and the net loss was $690,000, or $.13 per share, compared to net earnings of $130,000, or $.03 per share, for last year. -0- 2/14/92 /CONTACT: Nunzio DeSantis, 505-761-6161, or Vince Villanueva, 505-345-8080 both of Cap Rx, Ltd.; or Julius Golden, 505-883-6940, for Cap Rx/ (CPXLF) CO: Cap Rx, Ltd. ST: New Mexico IN: INS SU: ERN SH -- NY048 -- 0249 02/14/92 13:41 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Feb 14, 1992|
|Previous Article:||COLUMBIA GAS REPORTS IMPROVED EARNINGS IN FOURTH QUARTER, LOSS FOR YEAR; OIL AND GAS ASSET WRITEDOWN MAY BE NECESSARY|
|Next Article:||ZEBRA TECHNOLOGIES FILES TRADEMARK INFRINGEMENT SUIT|