Citizens Inc. Earnings Up 61.5% in 2000.Business Editors 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 20, 2001 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). ) reported net income of $2.1 million or $0.08 per share for the year ended Dec. 31, 2000, compared to net income of $1.3 million or $0.05 per share during the same period in 1999. Revenues in 2000 were $66.7 million compared to $71.9 million for the same period in 1999 and premium income was $53.5 million compared to $59.3 million in 1999. Improved claims experience and persistency, coupled with reductions in expenses and a 7.9% increase in investment income contributed to the higher earnings in 2000. As a result of substantial losses in its accident and health business, management cancelled can·cel v. can·celed also can·celled, can·cel·ing also can·cel·ling, can·cels also can·cels v.tr. 1. To cross out with lines or other markings. See Synonyms at erase. 2. a large portion of the existing blocks of major medical and group dental dental /den·tal/ (den´t'l) pertaining to a tooth or teeth. den·tal adj. 1. Of, relating to, or for the teeth. 2. Of, relating to, or intended for dentistry. business in the third quarter of 1999 to reduce claims and 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. in this line. This action reduced premium income by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3.7 million in 2000. It did not affect the Company's profitable individual accident and health business. Accident and health premium represented approximately 18% of the Company's total premium income for 1999, however as a result of the cancellations amounted to less than 14% of premiums in 2000. Net income for the quarter ended Dec. 31, 2000, was $1.7 million, or $0.07 per share, compared to $200,000 or $0.01 per share for the same period in 1999. Revenues for the fourth quarter of 2000 registered $17.6 million, compared to $18.9 million for the same period in 1999. Significant reductions in claims expenses offset the loss of premiums on the accident and health business during the fourth quarter of 2000. Total assets at Dec. 31, 2000, were $267.8 million, compared to $255.5 million at Dec. 31, 1999. 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 $77.3 million at the close of 2000, compared to $72.3 million at Dec. 31, 1999. The increase resulted from the 2000 earnings and a $3.0 million mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. increase in the value of the Company's bond portfolio in the second half of 2000. "The actions taken to cancel (character) Cancel - (CAN, Control-X) ASCII character 24. the group dental and individual major medical policies in 1999 have proven to be the proper course," said Mark A. Oliver Ol·i·ver , Joseph Known as "King Oliver." 1885?-1938. American jazz musician and composer who had a great influence on the style of Louis Armstrong. His Creole Jazz Band was the first Black group to make jazz recordings. , president of Citizens. "Although the effect was to cause a reduction in premium income, the Company's emphasis has always been on generating profits rather than just building revenues," he said. Citizens Inc. is a financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company with headquarters in Austin, Texas. The Company is listed on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. under the symbol CIA. Its growth strategy is to reach $1 billion in assets, $250 million in revenues, and $10 billion in life insurance in-force during the next decade through targeting whole life insurance sales to average income earners For US-specific income information see Income in the United States Income earner refers to an individual who through work, investments or a combination of both dervies income, which has a fixed and very fixed value of his/hr income (sometimes, called Vulkary Workers). in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , expansion of its whole life sales in international markets, and the continued debt-free acquisition of other life companies. The stock closed at $6.45 on March 19, 2001. Additional Company information is available at www.citizensinc.com. Information herein contains 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 the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, which can be identified by words such as "may," "will," "expect," "anticipate" or "continue," or comparable words. In addition, all statements other than statements of historical facts that address activities that the Company expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of the Company, particularly its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the Fiscal Year Ended Dec. 31, 2000, for the meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.
CITIZENS INC.
COMPARATIVE CONSOLIDATED FINANCIAL HIGHLIGHTS
OPERATING STATEMENTS
Year Ended
December 31,
------------
2000 1999
---- ----
Premiums and Other Revenues
Premium income $ 53,451,853 $ 59,320,357
Net investment income 12,550,754 11,636,940
Other 675,509 919,761
------------ ------------
Total revenues $ 66,678,116 $ 71,877,058
Benefits and Expenses
Increase in future policy
benefit reserves 7,265,347 7,371,214
Claims and surrenders 30,370,996 34,747,480
Policyholder dividends 3,037,343 2,843,681
Commissions 12,411,053 12,234,053
Underwriting and
insurance expenses 10,139,539 10,328,996
Net change in deferred policy
acquisition costs (1,534,315) 741,349
Other 2,464,412 2,637,836
------------ ------------
Total benefits and expenses $ 64,154,375 $ 70,904,609
------------ ------------
Income (loss) before federal
income tax $ 2,523,741 $ 972,449
Federal income tax expense
(benefit) 471,000 (298,623)
------------ ------------
Net income $ 2,052,741 $ 1,271,072
============ ============
(Unaudited)
Three-Months Ended
December 31,
------------
2000 1999
---- ----
Premiums and Other Revenues
Premium income $ 14,078,637 $ 15,787,309
Net investment income 3,293,595 2,948,016
Other 249,110 147,680
------------ ------------
Total revenues $ 17,621,342 $ 18,883,005
Benefits and Expenses
Increase in future policy
benefit reserves 2,649,409 3,743,281
Claims and surrenders 6,011,843 9,683,310
Policyholder dividends 907,964 779,448
Commissions 3,589,023 3,325,759
Underwriting and
insurance expenses 2,409,554 2,243,465
Net change in deferred policy
acquisition costs (1,109,708) (1,213,698)
Other 766,753 588,528
------------ ------------
Total benefits and expenses $ 15,224,838 $ 19,150,093
------------ ------------
Income (loss) before federal
income tax $ 2,396,504 $ (267,088)
Federal income tax expense
(benefit) 705,398 (481,050)
------------ ------------
Net income $ 1,691,106 $ 213,962
============ ============
INCOME PER SHARE
(Unaudited)
Year Ended Three-Months Ended
December 31, December 31,
------------ ------------
2000 1999 2000 1999
---- ---- ---- ----
Net income per share $0.08 $0.05 $0.07 $0.01
==== ==== ==== ====
Average shares
outstanding 25,107,604 25,057,913 25,107,604 25,057,913
BALANCE SHEETS
(Unaudited)
December 31, September 30,
2000 2000
---- ----
Total assets $267,842,364 $261,556,405
Total invested assets $194,203,327 $186,896,625
Stockholders' equity $ 77,313,031 $ 73,836,647
(Unaudited) (Unaudited)
June 30, March 31, December 31,
2000 2000 1999
---- ---- ----
Total assets $257,095,007 $254,242,493 $255,484,786
Total invested assets $179,897,155 $174,331,762 $174,338,561
Stockholders' equity $ 72,391,383 $ 70,111,314 $ 72,266,969
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