Consumers Financial Corp. announces third quarter 1995 operating results.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 ) Monday Monday: see week. announced a third quarter net loss of $213,000 (12 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 $621,000 loss (27 cents per share) in the third quarter of 1994. 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, operating results improved from a $1 million loss (51 cents per share) in 1994 to a $699,000 loss (39 cents per share) in the current year. The 1994 results include income of $299,000 from the cumulative effect of an accounting change. Excluding that non-recurring item, 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. operating results in 1995 improved by $633,000. The reduced losses are attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to an improvement in the performance of the company's core Automotive Resource Division and to a significant increase in earnings from the Auto Auction Division. Automotive Resource Division ---------------------------- Credit insurance premium production in 1995 continues to lag slightly behind last year, following a flat third quarter. Premium production for the year totaled $26.3 million, a 2.8% decline from the $27.1 million produced in the first nine months of 1994. 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. also continue to be about level with 1994. The Automotive Resource Division reported a $1.1 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta loss for the first nine months of 1995 compared to a $1.3 million loss in 1994. A $320,000 reduction in expenses, which resulted in a one percentage point drop in the credit insurance expense ratio, produced a small improvement in operating results. The company continues to seek opportunities not only to acquire existing blocks of credit insurance business and new business but also to provide administrative services to other credit insurance companies. The objective of both of these strategies is to accelerate the pace at which the Division builds its premium income and reduces its administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . In April 1995, the company began administering in-force blocks of credit insurance business for two other small companies. The company is continuing its negotiations with respect to the previously announced proposal to acquire the credit insurance business of Acceleration Life Insurance Co. Individual Life Insurance Division ---------------------------------- Operations in the company's Individual Life Insurance Division are limited to one closed block of assumed universal life business. The Division reported a $98,000 pre-tax loss in the first nine months of 1995 compared to a $26,000 profit in 1994. Unusually high claims costs in the second quarter have negatively impacted the 1995 results from this book of business. Auto Auction Division --------------------- Pre-tax profits in the Auto Auction Division increased from $482,000 in the first nine months of 1994 to $754,000 in 1995. Increased revenues, the elimination 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. from an Ohio auction facility which was terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: at the end of 1994 and a $138,000 non-recurring gain (representative of the excess of fire insurance proceeds over the book value of the property damaged in the February February: see month. fire) all contributed to the rise in profits. 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 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 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)
(in thousands, except per share data)
Three Months Nine months
ended Sept. 30, ended Sept. 30,
-------------------- -------------------
1995 1994 1995 1994
-------------------- -------------------
Revenues:
Premiums written and
policy charges $10,686 $11,085 $30,603 $32,090
Net investment income 734 1,102 2,207 3,814
Net realized investment
losses (13) (15) (36) (35)
Fees and other income 1,331 1,298 3,709 3,591
------- ------- ------- -------
$12,738 $13,470 $36,483 $39,460
======= ======= ======= =======
Loss before income taxes ($232) ($463) ($686) ($1,111)
Income tax expense (benefit) (19) 158 13 221
------- ------- ------- -------
Loss before cumulative effect
of change in accounting
principle (213) (621) (699) (1,332)
Cumulative effect of change
in accounting principle -- -- -- 299
-------- -------- --------- --------
Net loss ($213) ($621) ($699) ($1,033)
======== ======== ========= ========
Per share data:
Loss before cumulative
effect of change in
accounting principle ($0.12) ($0.27) ($0.39) ($0.62)
Cumulative effect of
change in accounting
principle -- -- -- 0.11
------- ------- -------- -------
Net loss ($0.12) ($0.27) ($0.39) ($0.51)
======= ======= ======== =======
Cash dividends declared
per common share NONE NONE NONE $0.05
=======
====================================================================
Sept. 30, Dec. 31,
(in thousands, except per share data) 1995 1994
-------- --------
Assets $127,916 $125,276
======== ========
Total debt $2,702 $3,389
======== ========
Shareholders' equity and redeemable
preferred stock $16,207 $15,226
======== ========
Shareholders' equity per common share $4.41 $3.96
======== ========
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 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion