Citizens Inc. reports growth continues for seventh consecutive year.AUSTIN, Texas--(BUSINESS WIRE)--March 22, 1995--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). ) an international life insurance holding company, today reported substantial increases in total assets, capital and revenue growth for both its fourth quarter and the year ended Dec. 31, 1994 and additionally, that operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. reached record levels for the seventh consecutive year. Citizens' 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. , Randall H. Riley, stated that net earnings for the fourth quarter ended last December, declined to $878,000, or $.05 per share, compared to $1.6 million or $.10 per share for the same period in 1993. The earnings per share for 1994 were affected by additional shares outstanding due to an overseas offering completed during the quarter that increased shares outstanding by approximately 900,000. Revenues for the quarter were $13.8 million compared to $13.5 million reported in the same three-month period in 1993. Decreases in capital gains on bonds and increased 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. as a result of recent growth were the primary reasons for the lower earnings in 1994. For the year ended Dec. 31, 1994, net earnings were $4.2 million or $.25 per share, a decrease of 24 percent from the $5.5 million or the $.34 per share reported for the same period in 1993. Operating income, which is comprised of income before taxes and capital gains, improved to $5.8 million in 1994, up 7 percent over the $5.4 million attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. in 1993. A reduction in capital gains realized from the company's bond portfolio was the primary factor in the lower net income in 1994. Revenues for the year reached $49.2 million, a 15 percent increase over the same period in 1993 when total revenues were $42.8 million. Premium income in 1994 was $43.8 million compared to $37.9 million, a 16 percent increase. Total assets at Dec. 31, 1994, reached $149.8 million, a 12 percent increase since Dec. 31, 1993, when total assets were $134.1 million. 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. has risen 25 percent since Dec. 31, 1993, from $28.0 million to $35.1 million. During the fourth quarter of 1994, the company announced agreements to acquire Insurance Investors & Holding Co. of Peoria, Ill., and American Liberty Financial Corp. of Baton Rouge Baton Rouge (băt`ən r  zh) [Fr.,=red stick], city (1990 pop. 219,531), state capital and seat of East Baton Rouge parish, SE La. , La. The two
acquisitions, for shares of Citizens' Class A common stock, are
expected to be 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 the second quarter of 1995. Riley said "We are pleased with the overall results attained in 1994, particularly when one considers the two acquisitions we were able to initiate during the year. On a 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 basis, assets reached approximately $187 million, stockholders' equity grew to $53.5 million and total revenues were more than $58 million for the year ended 1994, each of which marks a significant milestone in the history of the company." Citizens, Inc. Comparative Consolidated Financial Highlights Operating Statements operating statement See income statement. (Unaudited) Year Ended Three Months Ended Dec. 31, Dec. 31, 1994 1993 1994 1993 Premiums and other revenues Premium income $43,785,361 $37,883,061 $12,367,921 $12,443,120 Net investment income 5,295,784 4,771,079 1,365,943 1,097,992 Other 75,564 106,955 18,105 27,856 Total revenues 49,156,709 42,761,095 13,751,969 13,568,968 Benefits and expenses Increase in future policy benefit reserves 11,910,751 10,160,523 3,657,061 3,316,745 Claims and surrenders 16,635,259 14,166,018 3,924,584 5,132,433 Policyholder Policyholder An individual who owns an insurance policy. dividends 2,381,581 2,418,456 677,280 619,797 Commissions 12,382,372 12,011,822 3,783,752 3,545,692 Underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and insurance expenses 5,079,538 4,331,669 1,485,842 1,043,103 Net change in deferred policy acquisition costs (5,924,456) (7,016,663) (1,899,221) (2,302,763) Other 915,417 1,329,999 332,283 337,432 Total benefits and expenses 43,380,462 37,401,824 11,961,581 11,692,439 Operating income 5,776,247 5,359,271 1,790,388 1,876,529 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. on investments (9,356) 2,120,837 (181,243) 290,787 Income before federal income tax 5,766,891 7,480,108 1,609,145 2,167,316 Federal income tax expense 1,592,333 1,953,715 730,404 518,027 Net income 4,174,558 5,526,393 878,741 1,649,289 Income per share Operating income per share 0.34 0.32 0.09 0.11 Net income per share 0.25 0.34 0.05 0.10 Balance Sheets Dec. 31, Sept. 30, June 30, 1994 1994 1994 Total assets $149,797,604 $144,878,120 $138,935,140 Total invested assets $93,828,650 $91,896,105 87,273,110 Stockholders' equity $35,055,373 $33,304,734 28,557,672 March 31, Dec.31 1994 1993 Total assets $135,763,191 $134,105,460 Total invested assets $86,932,601 $87,010,996 Stockholders' equity $28,585,046 $28,014,704 CONTACT: Citizens Inc., Austin Mark A. Oliver, 512/837-7100 |
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