Conning Corporation Reports Second- Quarter Earnings of $0.28 Per Share, an Increase of Over 27 Percent.ST. LOUIS--(BUSINESS WIRE)--July 22, 1999-- 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 second quarter and six months ended June June: see month. 30, 1999. Conning provides asset management services primarily to insurance companies and institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. , 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. Second-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 over 27 percent to $0.28 compared to $0.22 per share in the second quarter of 1998. Net income rose 23 percent to $3.9 million from $3.2 million in the prior year. All aspects of Conning's businesses positively contributed to the Company's financial results. Revenues for the second quarter increased almost 17 percent to $24.0 million from $20.6 million during the second quarter of 1998. 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 rose over 17 percent to $6.6 million from $5.6 million a year earlier. Net income plus amortization and depreciation increased over 16 percent to $4.8 million from $4.1 million during 1998. Diluted earnings per share increased 31 percent to $0.55 compared to $0.42 for the six months ended June 30, 1998. Net income rose 28 percent to $7.7 million from $6.0 million in the prior year. Revenues increased almost 17 percent to $47.0 million, up from $40.2 million during the first six months ended June 30, 1998. Operating income for the six-month period rose 22 percent to $13.0 million from $10.7 million a year earlier. Net income plus amortization and depreciation increased 20 percent to $9.3 million for the first half of the year from $7.8 million in the same period during 1998. 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:
intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues and develop solid client relationships." 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 15 percent over the twelve-month period ended June 30, 1999, increasing to $32.4 billion. Total assets serviced increased almost 5 percent over the past twelve months to $90.8 billion as of June 30, 1999, primarily resulting from growth in Conning's core asset management services. Total asset management and related fees increased 28 percent in the second quarter to almost $20 million compared to $15.4 million from a year ago. Mr. Rubenstein added, "This continues our trend of growth in asset management revenues outpacing the growth in discretionary assets under management as a result of our diverse product base and management focus on profitability." Asset Management The Asset Management group continued to experience strong growth, increasing revenues 26 percent during the three-month period ended June 30, 1999 compared to a year ago and rose over 23 percent from a six-month year to date comparison. Core investment management revenues from the Company's insurance and 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. clients increased 26 percent during the second quarter ended June 30, 1999 compared to the same period in 1998. The asset management results reflect the operations of the recently acquired The TCW TCW Total Carat Weight TCW Temporal Cold War (Star Trek Enterprise) TCW Troop Carrier Wing TCW Turnbuckle Championship Wrestling TCW Tasty Coma Wife (Scrubs episode) Group insurance operations and Noddings Group. The Private Equity division of Asset Management remained strong as revenues increased 22 percent during the second quarter of 1999 compared to a year ago. These results reflect normal recurring management fees from the family of Conning Private Equity Funds and positive investment return activity within the Fund portfolios. Mortgage Loan and Real Estate The Company's Mortgage Loan and Real Estate Group continued its strong growth during the second quarter of 1999 increasing revenues 35 percent to $7.0 million compared to $5.2 million during the same period in 1998. This increase is primarily due to the group's continued strong field office origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real capabilities and increasing demand for commercial loans by new and existing clients. As of June 30, 1999, the Company now services almost $4.0 billion in commercial mortgage assets, a 32 percent increase from the prior year. Research Services Conning's Research group generated total revenues of $8.3 million for the six months ended June 30, 1999 compared to $8.5 million for the same period a year ago. Current year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. revenues reflect continued strong growth in its core research business of almost 20 percent, offset by continued insurance industry declines in 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. Securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. Investment Capabilities During July July: see month. 1999, the Company's Mortgage Loan and Real Estate group completed its first commercial mortgage-backed Mortgage-backed may refer to:
The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. (CMBS CMBS See: Commercial Mortgage Backed Securities ) offering exceeding $750 million for its clients. Mr. Rubenstein stated, "This transaction was a milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. event for our mortgage loan and real estate team, generating positive economics for our company including significant future recurring revenues. It also demonstrates our management team's ability to successfully integrate the acquisition of Schroder Mortgage Associates continuing our strategy to further penetrate commercial mortgage securitization activities with Conning's existing strong commercial mortgage origination capabilities." The Company's Asset Management group is in the process of completing a collateralized bond obligation Collateralized Bond Obligation (CBO) Investment-grade bonds backed by a collection of junk bonds with different levels of risk, called tiers, that are determined by the quality of junk bond involved. (CBO CBO See: Collateralized Bond Obligation. ) with outside underwriters. This transaction, Conning's second CBO in less than a year, is expected to close in the third quarter and is anticipated to exceed the Company's initial CBO of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $165 million. Declaration of Quarterly Cash Dividend Conning's board of directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. its regular quarterly dividend of $0.05 per share on the Company's common stock, payable September September: see month. 10, 1999 to shareholders of record on August 20, 1999. This represents the seventh consecutive quarterly dividend to be paid by the Company since it has been publicly traded. The preceding discussions of expected future results may 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, revenue contributions from transactions and acquisitions have been projected accurately, and other factors discussed in company filings with the Securities and Exchange Commission. -0-
CONNING CORPORATION
(in 000s, except for per share data)
unaudited
Three Months Ended June 30,
1999 1998 Increase
Total revenues $ 23,957 $ 20,558 17%
Operating income 6,611 5,633 17%
Income before income taxes 6,553 5,569 18%
Net income 3,924 3,197 23%
Net income plus amortization
and depreciation 4,752 4,080 16%
Average dilutive shares 14,116 14,264
Basic earnings per share $ 0.29 $ 0.24
Diluted earnings per share $ 0.28 $ 0.22 27%
CONNING CORPORATION
(in 000s, except for per share data)
unaudited
Six Months Ended June 30,
1999 1998 Increase
Total revenues $ 47,003 $ 40,238 17%
Operating income 13,011 10,651 22%
Income before income taxes 12,894 10,521 23%
Net income 7,690 6,029 28%
Net income plus amortization
and depreciation 9,346 7,807 20%
Average dilutive shares 14,074 14,210
Basic earnings per share $ 0.58 $ 0.45
Diluted earnings per share $ 0.55 $ 0.42 31%
CONNING CORPORATION
Assets Serviced by the Company
(in billions)
As of As of As of
6/30/99 12/31/98 6/30/98
Assets under discretionary management:
Unaffiliated $15.1 $12.4 $12.1
Affiliated 17.3 17.2 16.1
Total 32.4 29.6 28.2
Investment advisory 29.0 29.3 28.3
Investment accounting and
reporting 29.4 31.5 30.5
Total assets serviced $90.8 $90.4 $87.0
CONNING CORPORATION
Consolidated Statements of Income
(in 000s, except per share data)
Three months ended June 30,
1999 1998
(unaudited)
Revenues:
Asset management and related fees $ 19,676 $ 15,350
Research services 3,887 4,338
Other income 394 870
Total revenues 23,957 20,558
Expenses:
Employee compensation and benefits 11,184 9,545
Occupancy and equipment costs 1,564 1,120
Marketing and production costs 1,984 1,811
Professional services 672 590
Amortization of goodwill and other 654 708
Other operating expenses 1,288 1,151
Total expenses 17,346 14,925
Operating income 6,611 5,633
Interest expense 58 64
Income before provision for
income taxes 6,553 5,569
Provision for income taxes 2,629 2,372
Net income $ 3,924 $ 3,197
Average diluted shares outstanding 14,116 14,264
Earnings per share:
Basic $ 0.29 $ 0.24
Diluted $ 0.28 $ 0.22
CONNING CORPORATION
Consolidated Statements of Income
(in 000s, except per share data)
Six months ended June 30,
1999 1998
(unaudited)
Revenues:
Asset management and related fees $ 37,849 $ 30,035
Research services 8,289 8,506
Other income 865 1,697
Total revenues 47,003 40,238
Expenses:
Employee compensation and benefits 21,802 19,177
Occupancy and equipment costs 3,084 2,265
Marketing and production costs 3,828 3,369
Professional services 1,342 1,141
Amortization of goodwill and other 1,303 1,416
Other operating expenses 2,633 2,219
Total expenses 33,992 29,587
Operating income 13,011 10,651
Interest expense 117 130
Income before provision for
income taxes 12,894 10,521
Provision for income taxes 5,204 4,492
Net income $ 7,690 $ 6,029
Average diluted shares outstanding 14,074 14,210
Earnings per share:
Basic $ 0.58 $ 0.45
Diluted $ 0.55 $ 0.42
CONNING CORPORATION
Consolidated Balance Sheet Information
(amounts in 000s)
June 30, December 31,
1999 1998
(unaudited)
Assets:
Current assets:
Cash and cash equivalents $ 33,940 $ 31,343
Short-term investments 20,550 28,288
Accounts receivable, net 11,925 11,165
Marketable equity securities 661 278
Prepaid expenses and other
current assets 680 482
Total current assets 67,756 71,556
Non-marketable investments at value 5,336 2,737
Equipment and leasehold
improvements, less accumulated
amortization 1,755 1,452
Deferred income taxes 2,737 3,200
Goodwill 42,558 40,706
Other assets 4,792 2,827
Total assets $124,934 $122,478
Liabilities and Shareholders' Equity
Current liabilities:
Compensation payable $ 6,328 $ 12,795
Deferred revenue 4,206 3,793
Due to affiliates 4,520 2,339
Income tax payable 17 284
Accounts payable and other
accrued expenses 17,134 19,555
Total current liabilities 32,205 38,766
Accrued rent liability 3,058 3,216
Other payables 240 320
Total liabilities 35,503 42,302
Common stock 139 136
Additional paid in capital 77,882 74,975
Retained earnings 17,807 11,462
Treasury stock (6,397) (6,397)
Total common shareholders' equity 89,431 80,176
Total liabilities and
shareholders' equity $124,934 $122,478
-0-
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion