Consumers Financial Corp. announces first quarter 1996 operating results.CAMP HILL, Pa.--(BUSINESS WIRE)--May 23, 1996--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 ) Thursday Thursday: see week. announced a first quarter net loss of $424,000 (20 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. ) compared to a net loss of $395,000 (19 cents per share) in the first quarter of 1995. Revenues for the first quarter of 1996 were $10.5 million as compared to $11.1 million in 1995 due to a decline in credit insurance premiums. The decrease in credit insurance premiums is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a drop in automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of sales due to the harsh winter experienced in much of the company's marketing area and also to the cancellation of all business in one unprofitable state. Increased losses in the Automotive Resource Division more than offset the improved profitability in both the Individual Life Insurance Division and in the Auto Auction Division. Because of the recurring re·cur 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. losses in its core credit insurance business, the company announced in March 1996 that it has retained a financial advisor to assist management in evaluating various alternatives for preserving shareholder value. The alternatives being considered include the sale of the insurance operations, the sale of the auto auction business, the sale of the entire company or a combination of the company with another organization. Management is currently reviewing proposals it has received as a result of its recent solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of bids, and it is anticipated that a number of additional bids will be received in the near future. While there can be no assurance that any of these transactions will be completed in 1996, the company believes it is reasonably possible that one or more of the alternatives outlined above will 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. by the end of the third quarter. Credit insurance premiums decreased by 6.1% in the first quarter of 1996 to $7.3 million for the reasons stated above. The division's pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the first three months of 1996 increased to $715,000 from $346,000 in the same period last year because of a higher disability claims ratio and, to a lesser extent, a higher general expense ratio. Operations in the company's Individual Life Insurance Division are now limited to one closed block of assumed universal life business. A significant reduction in death claims in the first quarter of 1996 resulted in a $186,000 improvement in pre-tax operating results compared to the first three months of 1995. The division's pre-tax profit for 1996 was $84,000 while a $103,000 loss was reported in the first quarter of 1995. Auto auction fee revenues in the first quarter increased 6.2% from $664,000 to $750,000 as a result of fee rate changes implemented at the beginning of the year. Pre-tax profits also increased from $136,000 in the first quarter of 1995 to $209,000 in the current year. Most of the increase, however, was attributable to the receipt of fire insurance proceeds which were $63,000 higher than the estimated amount included in the 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. 1995 financial statements. Consumers Financial Corp., an insurance holding company, operates through the following business units: The Automotive Resource Division, which provides management training and education services as well as credit insurance and other products to automobile dealers; the Auto Auction Division, which operates a wholesale automobile auction, and the Individual Life Insurance Division, which administers a small closed block of universal life insurance business. -0-
Consumers Financial Corp.
Financial Highlights (unaudited)
Three Months Ended
March 31,
(in thousands, except per share data) 1996 1995
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Revenues:
Premiums written and policy charges $ 8,618 $ 9,362
Net investment income 659 753
Net realized investment losses (1) (25)
Fees and other income 1,243 1,025
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$10,519 $11,115
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Loss before income taxes ($538) ($414)
Income tax benefit (114) (19)
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Net loss ($424) ($395)
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Net loss per share ($0.20) ($0.19)
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Cash dividends declared per common share None None
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(dollars in thousands, March 31, Dec. 31,
except per share data) 1996 1995
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Assets $120,043 $123,322
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Total debt $ 2,372 $ 2,537
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Shareholders' equity and redeemable
preferred stock $ 14,510 $ 15,671
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Shareholders' equity per common share $3.77 $4.20
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CONTACT: Consumers Financial Corp., Camp Hill Christy chris·ty n. Variant of christie. L. Leo Leo, in astronomy Leo [Lat.,=the lion], northern constellation lying S of Ursa Major and on the ecliptic (apparent path of the sun through the heavens) between Cancer and Virgo; it is one of the constellations of the zodiac. , investor relations Investor relations The process by which the corporation communicates with its investors. , 717/761-4230 |
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