Conning Corporation Reports First Quarter Earnings Per Share of $0.20.ST. LOUIS--(BUSINESS WIRE)--April 27, 1998--Conning Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CNNG) today reported financial and operating results for the first quarter ended March 31, 1998. First-Quarter Results Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 18 percent to $0.20 compared to $0.17 in the first quarter of 1997 and increased 33 percent compared to $0.15 per share 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 for the same period in 1997. Revenues increased 29 percent to $19.7 million up from $15.3 million during the first quarter of 1997. 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. for the quarter increased 46 percent to $5.0 million from $3.4 million a year earlier. Net income rose 51 percent to $2.8 million from $1.9 million in the prior year, due to increases in all aspects of the Company's business. Net income plus amortization and depreciation increased 36 percent to $3.7 million for the three month period ended March 31, 1998 from $2.7 million in the same period during 1997. Leonard Leon·ard , Ray Charles Known as "Sugar Ray." Born 1956. American boxer who won the 1976 Olympic light welterweight title. He held five world titles as both a welterweight and middleweight between 1979 and 1987. Noun 1. M. Rubenstein Rubenstein may refer to:
adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. performance. We will continue to build from our asset management, research and equity sourcing capabilities as well as explore possible opportunities in the marketplace. The results demonstrate our continued strength in the marketplace and our leadership in providing investment products and services to the insurance industry." Assets Under Management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. Assets under discretionary management grew by $1.5 billion increasing 6 percent from year end totaling $27.5 billion at March 31, 1998. Discretionary assets also grew by 26 percent over the twelve-month period ended March 31, 1998. Total assets serviced increased $5.4 billion to $85.5 billion as of March 31, 1998, a 6.7 percent increase from year end, primarily resulting from strong growth in assets under advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal and stable growth in discretionary assets. The mortgage loan and real estate division maintained steady growth during the first quarter servicing over $2.9 billion in mortgage loan assets, a 3.5 percent increase since year end. This growth primarily continues to result from services provided to unaffiliated relationships. Research Services Conning's research division enjoyed substantial growth as total revenues increased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 40 percent to $4.2 million for the first quarter 1998, up from $3.0 million during the same period in 1997. Approximately two-thirds of this revenue increase during the period was a result of continued growth in its core research business with remaining increase primarily due to increased 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. activity. Private Equity The private equity division's revenues increased 38 percent during the first quarter 1998 compared to a year ago primarily as a result of completing the final closing of a private equity fund, its fifth, totaling $225 million previously announced in January January: see month. 1998. Dedicated to investments in insurance, insurance service and managed care businesses, Conning Insurance Capital Limited Partnership V includes 17 institutional and insurance limited partners. Strategic Alliance As previously announced, Conning acquired a minority ownership in privately held Hales
The church of Hales St Margaret is one of 124 existing round-tower churches in Norfolk. Capital Advisors. Hales is a leading provider of financial, merger and valuation advisory services to insurance agencies, brokers and distributors with offices currently in Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. and San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . Conning provides asset management services to insurance companies, manages private equity funds investing in insurance and insurance-related companies, and conducts in-depth in-depth adj. Detailed; thorough: an in-depth study. in-depth Adjective detailed or thorough: an in-depth analysis research on the insurance industry. The preceding discussions of expected future results constitute 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. . Actual results could differ from expected results due to various factors, including whether final costs exceed estimates and other factors discussed in company filings with the Security and Exchange Commission. -0-
CONNING CORPORATION
(in 000s, except for per share data)
unaudited
Three Months Ended March 31,
1998 1997 Increase
Total revenues $ 19,680 $ 15,288 29%
Operating income 5,018 3,426 46%
Income before income taxes 4,952 3,333 49%
Net income 2,832 1,877 51%
Net income plus amortization
and depreciation 3,727 2,747 36%
Average dilutive shares 14,175 11,088
Basic Earnings per share $ 0.21 $ 0.24
Diluted earnings per share $ 0.20 $ 0.17 18%
Assets Serviced by the Company
(in billions)
As of As of As of
3/31/98 12/31/97 3/31/97
Assets under discretionary
Management:
Unaffiliated 12.2 11.8 10.1
Affiliated 15.3 14.2 11.8
Total 27.5 26.0 21.9
Investment advisory 27.9 21.3 20.7
Investment accounting &
reporting 30.1 32.8 11.6
Total assets serviced 85.5 80.1 54.2
CONNING CORPORATION
Unaudited supplementary pro forma earnings per share information:
The following 1997 supplementary earnings per share amounts
reflect adjustments to give effect to the stock offering and
conversion of preferred stock to common shares as if both occurred at
the beginning of 1997. These adjustments consist of (1) the increase
of investment income, net of taxes, of $285,000 for the three months
ended March 31, 1997 and (2) the conversion of the preferred stock to
common stock and issuance of new common stock and stock equivalents in
conjunction with the initial public offering and using first quarter
1998 market prices when applying the treasury stock method in
calculating diluted earnings per share.
Three Months Ended March 31,
Actual Pro Forma
1998 1997
(amounts in 000s except per share amount)
Net income $ 2,832 $ 2,162
Average dilutive shares 14,175 14,175
Basic earnings per share $ 0.20 $ 0.15
CONNING CORPORATION
Consolidated Statements of Income
(in 000s, except per share data)
Three months ended March 31,
1998 1997
(unaudited)
Revenues:
Asset management and related fees $ 14,685 $ 12,155
Research services 4,168 2,954
Other income 827 179
Total revenues 19,680 15,288
Expenses:
Employee compensation & benefits 9,632 7,792
Occupancy and equipment costs 1,145 818
Marketing and production costs 1,558 1,284
Professional services 552 379
Amortization of goodwill and other 708 744
Other operating expenses 1,067 845
Total expenses 14,662 11,862
Operating income 5,018 3,426
Interest expense 66 93
Income before provision for
income taxes 4,952 3,333
Provision for income taxes 2,120 1,455
Net income $ 2,832 $ 1,877
Preferred stock dividends 0 255
Net earnings available to common
shareholders 2,832 1,622
Average diluted shares outstanding 14,175 11,088
Earnings per share:
Basic $ 0.21 $ 0.24
Diluted $ 0.20 $ 0.17
CONNING CORPORATION
Consolidated Balance Sheet Information
(amounts in 000s)
March 31, December 31,
1998 1997
(unaudited)
Assets:
Current assets:
Cash and cash equivalents $ 51,555 43,085
Short-term investments 12,847 16,337
Accounts receivable, net 8,885 10,784
Marketable equity securities 674 601
Income taxes receivable --- 1,356
Prepaid expenses and other
current assets 312 359
Total current assets 74,273 72,522
Non-marketable investments at
value 2,449 2,350
Equipment and leasehold
improvements, less accumulated
amortization 1,465 1,525
Deferred income taxes 1,815 1,736
Goodwill 17,560 17,813
Other assets 3,456 3,911
Total assets $101,018 $ 99,857
Liabilities and Shareholders Equity
Current liabilities:
Compensation payable 3,151 11,149
Deferred revenue 4,312 3,201
Due to affiliates 3,262 1,379
Income taxes payable 890 ---
Accounts payable and other
accrued expenses 9,644 6,567
Current liabilities 21,259 22,296
Accrued rent liability 3,311 3,375
Other payables 440 480
Total liabilities 25,010 26,151
Common stock, $.01 par value:
50,000,000 and 20,000,000 shares
authorized in 1998 and 1997,
respectively; and 13,250,000
issued and outstanding in 1998
and 1997, respectively 133 133
Additional paid in capital 73,126 73,126
Retained earnings 2,749 447
Total common shareholders equity 76,008 73,706
Total liabilities and
shareholders equity $101,018 $ 99,857
CONTACT: Investor Contact: Fred (Friendly Rollabout Engineered for Doctors) A mobile medical conferencing unit. See videoconferencing. 1. FRED - Robert Carr. Language used by Framework, Ashton-Tate. 2. M. Schpero, or Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Kopsky, Jr., 314/444-0715, with Conning Corporation or Media Contact: David Garino, 314/982-1700, for Conning Corporation CONTACT: Conning Corporation Financial: Fred M. Schpero or Paul Kopsky Jr., 314/444-0715 Media: David Garino, 314/982-1700 http://www.conning.com |
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