Crop Growers Reports Record First-Quarter Earnings.GREAT FALLS Great Falls, city (1990 pop. 55,097), seat of Cascade co., N central Mont., second largest city in the state, at the confluence of the Missouri and Sun rivers and near the falls that give the city its name; inc. 1888. , Mont.--(BUSINESS WIRE)--May 13, 1996--Crop Growers Growers are the people, animals, plants, and various living creatures that assist in the growing of plants and other living creatures. More specifically, the term "growers" refers to individual people who put forth effort to grow plants for food and medicinal use, including the 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 :CGRO CGRO Compton Gamma-Ray Observatory ) today reported record first-quarter earnings of $7.0 million, or $.84 a share, compared with $5.2 million, or $.63 a share, in 1995's first quarter. First-quarter revenues rose 35 percent to $67.6 million versus $50.2 million in the same quarter last year. Revenues for the quarter were generated primarily from multi-peril crop insurance (MPCI MPCI Multiple Peril Crop Insurance MPCI Mouvement Patriotique de Côte D’ Ivoire (Patriotic Movement of the Ivory Coast) MPCI Mobile Protocol Capability Indicator MPCI Multi-Point Courtesy Inspection MPCI Mini Pci MPCI Managing Partners Confidence Index ) premiums serviced, which climbed to $225.9 million from $151.2 million the year before. This 49 percent increase in premium can be partially attributed to the Dawson Dawson or Dawson City, city (1991 pop. 972), W Yukon Territory, Canada, at the confluence of the Yukon and Klondike rivers. It is the trade center of the Klondike mining region and a tourist center. Agency, which was acquired by the company in March of 1995. If Dawson's Dawson's may refer to:
The company also reported that general and administrative expenses for the quarter were $7.7 million, up from $5.4 million in the same quarter last year, but down from the $9.0 million in the fourth quarter of 1995. The reduction was due in part to several nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. expenses in the fourth quarter, and to the company's efforts to improve efficiency following substantial growth throughout 1995. The increase in general and administrative expenses over the first quarter of 1995 was primarily a result of the company's growth in MPCI serviced. Included in the 1996 first quarter were expenses of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $500,000 pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to the investigation of the company being conducted by the Independent Counsel appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. to investigate matters relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc former Secretary of Agriculture Mike Espy Alphonso Michael Espy, usually called Mike Espy, (born November 30, 1953) was a U.S. political figure. From 1987 to 1993, he served in the U.S. House of Representatives from Mississippi. He served as the Secretary of Agriculture from 1993 to 1994. . Commenting on results for the quarter, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. John Hemmingson explained, "Our continued growth in the servicing of MPCI premium is a combination of selected acquisitions and increased premium levels on our previously established policy base. We're we're Contraction of we are. we're we are encouraged by the improvement in core 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. from the previous quarter and expect that trend to continue. Furthermore, our direct costs for agent commissions, as a percentage of MPCI service fees, were reduced as a result of strategic agency acquisitions made in 1995. Crop Growers markets and services federal multi-peril crop insurance and crop hail insurance for third party insurance companies and its own insurance company subsidiaries. Crop Growers is the nation's second largest servicer of crop insurance. The company also develops, markets and sells farm management software and related mapping products. The company had 8,149,131 shares outstanding as of March 31, 1996. -0-
Crop Growers Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three months ended
March 31, March 31,
1996 1995
Revenues: Service fees $66,272,697 $49,164,958 Software and hardware sales 663,251 254,664 Premiums earned and other income 116,769 350,494 Investment income 561,512 461,820
Total revenues 67,614,229 50,231,936
Expenses: Agent commissions and other direct costs 46,280,011 35,477,069 Cost of software and hardware sales 347,206 68,496 Losses incurred and other expense 97,407 199,004 General and administrative expense 7,705,349 5,416,609 Depreciation expense 423,297 281,032 Amortization expense 451,239 199,074 Interest expense 834,037 270,917
Total expenses 56,138,541 41,912,201
Income before income taxes 11,475,688 8,319,735
Income taxes (4,503,163) (3,141,291)
Net income $ 6,972,525 $ 5,178,444
Net income per common share $ .84 $ .63
Weighted average common shares
outstanding 8,348,429 8,284,069
Crop Growers Corporation and Subsidiaries
Consolidated Balance Sheets
March 31, December 31,
1996 1995
(unaudited)
ASSETS
Investments: Fixed maturities, held to maturity $ 2,310,736 $ 2,311,177 Fixed maturities, available for sale 5,800,774 5,838,391 Equity securities, available for sale 1,828,766 1,757,540
Total investments 9,940,276 9,907,108
Cash and cash equivalents 636,486 6,980,570 Premiums receivable, net 187,894,210 73,870,654 Prepaids and other assets 3,819,240 8,556,765 Reinsurance balances receivable 95,460,926 31,779,006 Property and equipment, net 12,432,542 11,687,066 Intangible assets, net 9,115,270 9,264,662
$319,298,950 $152,045,831
LIABILITIES AND STOCKHOLDERS' EQUITY Premiums and commissions payable $ 72,411,316 $ 23,572,783 Accounts payable and other liabilities 17,003,058 8,183,036 Loss reserves 85,341,565 21,726,157 Reinsurance balances payable 86,860,418 17,787,552 Note payable to bank 2,908,639 32,245,539 Long-term debt 3,838,477 4,188,540 Total liabilities $268,363,473 $107,703,607
Stockholders' equity:
Preferred stock (par value $.01):
10,000,000 shares authorized;
none issued and outstanding -- --
Common stock (par value $.01):
40,000,000 shares authorized;
8,149,131 and 8,172,581 shares issued and
outstanding at March 31, 1996 and
December 31, 1995, respectively 81,491 81,726
Paid-in capital 37,856,739 38,244,567
Retained earnings 12,854,499 5,881,973
Unrealized appreciation of fixed maturity
investments available for sale, net of
taxes 205,248 208,958
Unearned compensation (62,500) (75,000)
Total stockholders' equity $ 50,935,477 $ 44,342,224
$319,298,950 $152,045,831
CONTACT: Crop Growers Corporation Bob Rousey, 208/666-5340 |
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