Citizens Inc. First Quarter Earnings Decrease.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)--May 11, 2000 Due to start-up Start-up The earliest stage of a new business venture. expenses related to the Company's new whole life living benefit U.S. marketing program, increased health insurance claims, along with the cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. of virtually all in force health policies and premiums, Citizens (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). ) experienced a loss of $300,000 or one cent per share during the first quarter of 2000. Management decided during the third quarter of 1999 to cancel (character) Cancel - (CAN, Control-X) ASCII character 24. unprofitable health policies and premiums in order to limit future losses. It also initiated its new U.S. sales program to accelerate growth in its life insurance business -- a more profitable line. Revenues for the quarter were $15.6 million compared to $16.8 million during the corresponding quarter in 1999 as a result of the health policy cancellations. Premium income for the first period of 2000 was $12.4 million, compared to $13.5 million for the same quarter in 1999, a decrease of $1.1 million, or 8%. Although cancellation of the health business decreased premiums and revenues, the positive side of the action was expenses and benefits decreased from $16.5 million to $16 million, or 2.9%. Further reduction of expenses and benefits are anticipated as the health business continues to expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. . Total assets at March 31, 2000, were $254.3 million, compared to $255.5 at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 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. decreased by $1.8 million as a result of a decline in market value of securities, due to lower bond market values. Citizens' strategy is for it to reach $1 billion in assets, $250 million in revenues and $10 billion of life insurance in force through its three-pronged Adj. 1. three-pronged - having three prongs divided - separated into parts or pieces; "opinions are divided" growth plan targeting the sale of ordinary life insurance 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 U.S. dollar-denominated whole life international marketing and the acquisition of other life insurance companies. Citizens Inc. is a life insurance holding company with main offices in Austin, Texas. It is an AMEX-listed company with CIA as its symbol. Additional information is available at www.citizensinc.com. -------------------
CITIZENS INC.
COMPARATIVE CONSOLIDATED FINANCIAL HIGHLIGHTS
OPERATING STATEMENTS
--------------------
(Unaudited)
Three-Months Ended
March 31,
--------
2000 1999
---- ----
Premiums and Other Revenues
Premium income $ 12,376,601 $ 13,534,935
Net investment income 2,976,711 3,004,958
Other 225,128 278,177
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Total revenues $ 15,578,440 $ 16,818,070
Benefits and Expenses
Increase in future policy
benefit reserves $ 1,119,916 $ 1,173,649
Claims and surrenders 8,238,358 8,207,261
Policyholder dividends 550,671 501,634
Commissions 2,863,834 2,866,678
Underwriting and
insurance expenses 2,503,213 2,347,720
Net change in deferred policy
acquisition costs 196,421 898,882
Other 526,536 486,011
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Total benefits and expenses $ 15,998,949 $ 16,481,835
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Income (loss) before
federal income tax $ (420,509) $ 336,235
Federal income tax expense $ (119,837) $ 58,484
------------ ------------
Net income (loss) $ (300,672) $ 277,751
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INCOME PER SHARE
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Operating income (loss) per share $(0.01) $0.01
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Net income (loss) per share $(0.01) $0.01
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Average shares outstanding 23,465,048 23,351,961
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BALANCE SHEETS
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March 31, December 31,
2000 1999
---- ----
Total assets $254,242,493 $255,484,786
Total invested assets $174,331,762 $174,338,561
Stockholders' equity $70,111,314 $72,266,969
September 30, June 30, March 31,
1999 1999 1999
---- ---- ----
Total assets $252,728,467 $252,974,823 $254,380,103
Total invested assets $174,928,897 $177,240,791 $177,172,069
Stockholders' equity $73,774,290 $74,066,445 $76,383,725
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