Consumers Financial Corp. Announces 3rd Quarter and Year-to-Date 1997 Operating Results.CAMP HILL, Pa.--(BUSINESS WIRE)--Nov. 14, 1997--Consumers Financial Corp. (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 :CFIN CFin Computational Finance CFIN Combat Flight Inspection ) Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant announced third quarter net income of $102,000 (a loss of 1 cent per share) compared to a loss of $225,000 (13 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ) in the same period of 1996. On a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis, the company's loss totaled $1.2 million (60 cents per share) in 1997 versus a loss of $891,000 (47 cents per share) last year. The loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the declined slightly from $1.3 million in 1996 to $1.1 million this year as a result of higher income tax benefits than in 1996. The operating results of the company's auto auction and individual life insurance segments are presented as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. as a result of the sale of those businesses in the fourth quarter of 1996 and the first quarter of 1997, respectively. A loss from discontinued operations of $125,000 was reported in the first nine months of 1997 compared to net income of $435,000 in the same period of 1996. The Automotive Resource Division, which currently is the company's only remaining business segment, markets credit insurance and other products and services primarily to automobile dealers. The Division's premium revenues in the first nine months of 1997 were $20.6 million, which represents a decline of 14% compared to the same period in 1996. A significant portion of the decline is attributable to the company's cancellation during 1996 of unprofitable business in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. , Ohio and Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). . Although the Division's pre-tax operating results improved slightly in the third quarter, year-to-date results have declined significantly from a $1.4 million loss last year to a $2.2 million loss in 1997. The decline is the result of higher credit insurance claims ratios for both life and disability business. Lower expenses partially offset the higher claim. A decrease in earned premiums Earned premium is the portion of an insurance written premium which is considered "earned" by the insurer, based on the part of the policy period that the insurance has been in effect, and during which the insurer has been exposed to loss. due to a decline in the written premium base also contributed to the poorer results. Following the termination of the merger agreement with LaSalle Group Inc. in July 1997 (because of LaSalle's inability to provide the funding to complete the transaction), the company entered into a letter of intent to sell the operations of its Automotive Resource Division to Life of the South Corp. Closing on this transaction which is effective Oct. 1, 1997, is expected to occur in late January 1998. The transaction is subject to approval of insurance regulators in Delaware, Ohio Delaware is a city in the U.S. state of Ohio and the county seat of Delaware CountyGR6. The municipality is located near the center of the state of Ohio, about 20 miles (32 km) north of Columbus, Ohio. Delaware was founded in 1808, incorporated in 1816. and Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). and the approval of the company's shareholders. -0-
Consumers Financial Corp.
Financial Highlights (unaudited)
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
(in thousands, except 1997 1996 1997 1996
per share data) ------------------ ------------------
Revenues (from continuing operations):
Premiums written $ 7,055 $ 7,817 $20,535 $24,328
Net investment income 450 540 1,589 1,578
Net realized investment
gains (losses) (22) (136) 224 (158)
Fees and other income 360 317 903 1,070
----- ----- ----- -----
$ 7,843 $ 8,538 $23,251 $26,818
======= ======= ======= =======
Loss from continuing
operations before income
tax benefit ($122) ($644) ($1,909) ($1,766)
Income tax benefit (231) (363) (828) (440)
----- ----- ----- -----
Income (loss) from
continuing operations 109 (281) (1,081) (1,326)
Discontinued operations,
net of income taxes (7) 56 (125) 435
----- ----- ----- -----
Net income (loss) $102 ($225) ($1,206) ($891)
======= ======= ======= =======
Per share data:
Loss from continuing
operations ($0.01) ($0.01) ($0.55) ($0.64)
Discontinued operations -- -- (0.05) 0.17
------- ------- -------- -------
Net loss ($0.01) ($0.01) ($0.60) ($0.47)
======= ======= ======== =======
Cash dividends declared
per common share none none none none
====================================================================
Sept. 30, Dec. 31,
(in thousands, except 1997 1996
per share data) -------- --------
Assets $ 91,490 $114,619
======== ========
Total debt $ 0 $ 0
======== ========
Shareholders' equity and redeemable
preferred stock $ 11,917 $ 13,343
======== ========
Shareholders' equity per common share $2.71 $3.31
======== ========
CONTACT: Consumers Financial Corp., Camp Hill R. Fredric Zullinger, CFO See Chief Financial Officer. , 717/761-4230 |
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