Citizens Inc. Earnings Return in 4th Quarter.AUSTIN Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Texas--(BUSINESS WIRE)--March 31, 1999--Citizens Inc. (AMEX AMEX See: American Stock Exchange :CIA CIA: see Central Intelligence Agency. (1) (Confidentiality Integrity Authentication) The three important concerns with regards to information security. Encryption is used to provide confidentiality (privacy, secrecy). ), a life insurance holding company, today reported that earnings for the fourth quarter ending Dec. 31, 1998, returned, demonstrating a solid rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective from the loss reported in the third quarter. Revenues for the period increased more than 13%. Net income for the fourth quarter ended Dec. 31, 1998, was $1.6 million, or $0.08 per share, compared to the $1.7 million or $0.08 per share earned in the same period in 1997. Income before federal income tax reached $2.3 million in 1998, compared to $1.5 million in 1997. Revenues for the quarter were $19 million, compared to $16.8 million for the same period in 1997, an increase of 13.1%. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. associated with acquisitions and increased federal income taxes during the quarter offset revenue gains and kept profits for the comparable periods flat. A net loss of $6.7 million or $0.31 per share was incurred for the year ended Dec. 31, 1998, compared to income of $3.4 million or $0.16 per share during the same period in 1997. The loss was the result of a $9.5 million non-recurring third quarter write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of goodwill associated with the acquisition of American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Liberty Financial Corporation ("American") and increased operating expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc two 1997 acquisitions. Following the acquisition and consolidation of American, Citizens decreased sales compensation paid to agents of that company by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 45% resulting in a decline in sales associated with the company's accident and health business. The reduction was necessary to preserve profitability of the accident and health business which had been negatively impacted by state regulation, which mandated claims of at least sixty-five percent, as well as an interest rate increase for computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of reserves on the business. As a result of these actions, expected production of future business did not support the amount of goodwill on the books and $9.5 million of the capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. costs were charged to earnings during the period. Revenues for the year reached $72.7 million, an 11.8% increase compared to the same period in 1997 when total revenues were $65 million. Premium income in 1998 was $59.2 million compared to $55.4 million in 1997, a 6.9% increase. The acquisition of American Investment Network and National Security Life and Accident Insurance Company, both consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. during late 1997, contributed to revenue, premium, and expense increases. Total assets at Dec. 31, 1998, were $253.3 million, compared to $249.5 million at Dec. 31, 1997. As a result of the $9.5 million write-off in the third quarter, 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. declined $4.7 million to $74.9 million at the close of 1998, compared to $79.6 million at Dec. 31, 1997. The $6.7 million net loss for the year was partially offset by improved market values in the Company's bond portfolio. "We are pleased with the substantial increase in income before tax in the fourth quarter of 1998 compared to the preceding quarter and preceding year," said Harold Harold, 1022?–1066, king of England (1066). The son of Godwin, earl of Wessex, he belonged to the most powerful noble family of England in the reign of Edward the Confessor. Through Godwin's influence Harold was made earl of East Anglia. E. Riley, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the Company. "These earnings give us tremendous momentum as we enter 1999," he went on to say. -0-
CITIZENS INC.
COMPARATIVE CONSOLIDATED FINANCIAL HIGHLIGHTS
OPERATING STATEMENTS
Year Ended
December 31,
------------
1998 1997
---- ----
Premiums and Other Revenues
Premium income $59,154,329 $55,362,616
Net investment income 11,279,125 10,038,736
Other 2,251,461 (374,054)
----------- -----------
Total revenues 72,684,915 65,027,298
Benefits and Expenses
Increase in future policy benefit reserves 8,279,056 8,958,166
Claims and surrenders 31,592,740 27,852,907
Policyholder dividends 3,025,746 2,782,215
Commissions 12,501,426 11,918,192
Underwriting and insurance expenses 11,079,065 6,992,402
Net change in deferred policy
acquisition costs (152,316) (173,317)
Other 12,036,463 2,666,989
----------- ------------
Total benefits and expenses 78,362,180 60,997,554
----------- ------------
Income before federal income tax (5,677,265) 4,029,744
Federal income tax expense 1,043,428 604,221
----------- ------------
Net income $(6,720,693) $ 3,425,523
=========== ============
INCOME PER SHARE
Net income per share $(0.31) $0.16
====== ====
Average shares outstanding 21,386,137 20,868,921
OPERATING STATEMENTS
(Unaudited)
Three Months Ended
December 31,
------------
1998 1997
---- ----
Premiums and Other Revenues
Premium income $15,772,208 $15,059,677
Net investment income 2,626,680 2,471,043
Other 614,169 (734,784)
----------- -----------
Total revenues 19,013,057 16,795,936
Benefits and Expenses
Increase in future policy benefit reserves 2,499,096 2,427,021
Claims and surrenders 7,228,590 7,080,008
Policyholder dividends 803,874 520,504
Commissions 3,339,849 3,151,102
Underwriting and insurance expenses 2,727,982 708,750
Net change in deferred policy
acquisition costs (254,642) 445,660
Other 124,159 976,392
----------- -----------
Total benefits and expenses 16,673,560 15,309,437
----------- -----------
Income before federal income tax 2,339,497 1,486,499
Federal income tax expense 733,120 (178,033)
----------- -----------
Net income $1,606,377 $1,664,532
=========== ===========
INCOME PER SHARE
Net income per share $0.08 $0.08
==== ====
Average shares outstanding 21,386,137 20,712,937
BALANCE SHEETS
December 31, September 30, June 30,
1998 1998 1998
---- ---- ----
Total assets $253,384,195 $251,495,726 $250,978,541
Total invested assets $176,572,123 $179,099,245 $164,040,981
Stockholders' equity $ 74,903,679 $ 74,582,837 $ 79,296,266
March 31, December 31,
1998 1997
---- ----
Total assets $249,677,615 $249,519,435
Total invested assets $165,595,375 $162,651,692
Stockholders' equity $ 79,773,008 $ 79,581,698
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