Consumers Financial Corp. announces fourth quarter and year-to-date 1996 operating results.CAMP HILL, Pa.--(BUSINESS WIRE)--April 9, 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 ) Wednesday Wednesday: see week. announced a fourth quarter net loss of $342,000 (17 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 restated net loss of $902,000 (39 cents per share) for the same period in 1995. The 1996 loss includes a $1,856,000 after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain from the disposal of the company's auto auction business and a loss of $914,000 related to the March 1997 disposal of the company's remaining individual life insurance business. The operating results and the gain or loss on disposal of both the auto auction and individual life insurance businesses have been included with discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. in the financial statements for 1996. For comparative purposes, the financial statements for previous periods have been restated to also reflect these businesses as discontinued operations. 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 net loss in 1996 was $1,234,000 (64 cents per share) versus a loss of $1,601,000 (78 cents per share) in 1995. However, the 1996 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 was $2,706,000 compared to $2,072,000 in 1995. The higher 1996 loss from continuing operations is due primarily to the costs incurred in connection with valuing and offering for sale the company's various business segments and to higher disability claims in the company's credit insurance business. As a result of the operating losses 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. incurred in recent years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time company's management and its board of directors determined that various alternatives for preserving shareholder value had to be evaluated. This evaluation process, which took place during 1996, resulted in the execution of an Agreement and Plan of Merger with LaSalle Lasalle (ləsăl`) or Ville Lasalle (vēl), city (1991 pop. 73,804), S Que., Canada, SW of Montreal on the St. Lawrence River at the head of the Lachine Rapids. It is a suburb of Montreal. Group Inc. in October 1996. This merger transaction, which is subject to the approval of state insurance regulators in four states, was approved by the company's common shareholders on March 25, 1997. When the proposed merger with LaSalle is completed, LaSalle's strategy for returning the company's operations to profitability will include acquisitions of other credit insurance companies and blocks of credit insurance business, expansion of the company's marketing territory and growth in existing markets. LaSalle intends to provide additional capital not only to finance growth but also to build the insurance subsidiaries' capital base in order to improve the A.M. Best ratings of those companies. The Automotive Resource Division, which is now the company's only business segment, markets credit insurance and other products and services to automobile dealers and, to a limited extent, to financial institutions. In 1996, the Division's credit insurance premium revenues declined 9.5% to $30 million from $33.1 million in 1995. In 1995 premiums decreased 3.3% from the $34.3 million produced in 1994. The cancellation of unprofitable business played a major part in the reduction in premiums in both 1996 and 1995, as all accounts in Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. and 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. and certain accounts in 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). were cancelled. As indicated above, the Division's operating results were adversely impacted in 1996 by a significant increase in the claims ratio for credit disability business. This increase in claims was partially offset by a substantial reduction in 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. . -0-
CONSUMERS FINANCIAL CORP.
FINANCIAL HIGHLIGHTS (UNAUDITED)
Three Months Years ended
ended Dec. 31, Dec. 31,
(in thousands, except per --------------- ---------------
share data) 1996 1995 1996 1995
------ ------- ------- ------
(Restated) (Restated)
Revenues (from continuing
operations):
Premiums written $6,022 $6,992 $30,350 $33,832
Net investment income 509 457 2,087 2,236
Net realized investment losses (1) (84) (160) (120)
Fees and other income 255 378 1,325 1,481
------ ------- ------- -------
$6,785 $7,743 $33,602 $37,429
====== ======= ======= =======
Loss from continuing operations
before income tax benefit ($1,768) ($1,241) ($3,534) ($2,819)
Income tax benefit (388) (415) (828) (747)
------ ------- ------- -------
Loss from continuing operations (1,380) (826) (2,706) (2,072)
Discontinued operations, net of
income taxes 1,038 (76) 1,472 471
------ ------- ------- -------
Net loss ($342) ($902) ($1,234) ($1,601)
====== ======= ======= =======
Per share data:
Loss from continuing
operations ($0.57) ($0.36) ($1.20) ($0.96)
Discontinued operations 0.40 (0.03) 0.56 0.18
------ ------- ------- -------
Net loss ($0.17) ($0.39) ($0.64) ($0.78)
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Cash dividends declared per
common share NONE NONE NONE NONE
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Dec. 31, Dec. 31,
(in thousands, except per share data) 1996 1995
-------- --------
Assets $114,619 $123,322
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Total debt $0 $2,537
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Shareholders' equity and redeemable
preferred stock $13,343 $15,671
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Shareholders' equity per common share $3.31 $4.20
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CONTACT: Consumers Financial Corp., Camp Hill R. Fredric Zullinger, CFO See Chief Financial Officer. , 717/761-4230 |
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