Intercargo Corporation Third Quarter Earnings.SCHAUMBURG Schaum·burg A village of northeast Illinois, a suburb of Chicago. Population: 74,900. , Ill.--(BUSINESS WIRE)--Nov. 9, 1994--Intercargo 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 :ICAR) today reported third quarter earnings for the period ended September 30, 1994. Insurance premium income for the three months ended September 30, 1994 reached a record $21,614,000 a 79.1% increase over the $12,069,000 reported for the third quarter 1993. Net income for the quarter also set a new record high of $1,928,000 or $.25 per share on 7.7 million average shares outstanding compared to $143,000 or $.02 per share for the third quarter of 1993 on 7.1 million average shares outstanding. Revenues for the nine month period showed similar gains over the comparable 1993 period results with insurance premium income up 66.2% to $54,806,000 from $32,973,000 and total revenue up 61.2% to $59,318,000 from $36,793,000. Net income for the nine months of 1994 has substantially rebounded from first and second quarter levels but at $3,327,000 or $.43 per share remains slightly behind the 1993 result of $3,545,000 or $.50 per share. James R. Zuhlke, Chairman, 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. said, ``We are very pleased with the third quarter results. We continue to see good growth in most lines although we have tightened underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and increased rates in a number of areas to control the growth.'' Premium production has continued to increase in 1994. In U.S. operations, contract bond production is up 6.2%, marine insurance was up 25.1% and P&C was up 362.6%, while U.S. customs bonds showed a slight decline of 1.9%. Net written premium on the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. operation increased 267.9%. Mr. Zuhlke noted that the quarterly result was achieved notwithstanding some further strengthening of reserves. In addition, our product development activities are yielding extremely good results as evidenced by our agreement with FIATA FIATA Federation Internationale des Associations de Transitaires et Assimiles (International Federation of Freight Forwarders Associations) and AGF AGF Assurances Générales de France AGF Army Ground Forces AGF American Growth Fund (mutual fund) AGF American General Finance AGF Arbeitsgemeinschaft der Grossforschungseinrichtungen AGF Anatomic Gift Foundation AGF Assume Good Faith Singapore (See press release of November 7, 1994) and the addition of several significant accounts domestically which will begin coming on line in the fourth quarter. Headquartered in Schaumburg, Illinois Schaumburg is a village in Cook County and DuPage County, Illinois. As of the 2000 census, the village had a total population of 75,386. As of 2005, the population slightly dropped to 72,690 according to the Census Bureau. (a Chicago suburb suburb, a community in an outlying section of a city or, more commonly, a nearby, politically separate municipality with social and economic ties to the central city. In the 20th cent. ), Intercargo Corporation is a leading provider of specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. insurance coverage for companies involved in international trade. Its market is primarily importers and exporters, customs brokers Customs Broker An individual or firm licensed by customs authorities to enter and clear imported goods through customs. The broker represents the importer in dealings with the customs authorities. and freight forwarders An individual who, as a regular business, assembles and combines small shipments into one lot and takes the responsibility for the transportation of such property from the place of receipt to the place of destination. , and other global traders Traders Individuals who take positions in securities and their derivatives with the objective of making profits. Traders can make markets by trading the flow. When they do this, their objective is to earn the bid/ask spread. . The primary coverages it underwrites are U.S. Customs bonds, cargo insurance, property & casualty insurance, and professional liability for the broker/forwarder industry. Additionally, through a subsidiary, the Company sells specialty auto, property and casualty, and other lines in Canada. -0-
INTERCARGO CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
1994 1993 1994 1993
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Revenues
Insurance premium income $21,614 $12,069 $54,806 $32,973
Net investment income 1,103 973 3,229 3,059
Commission income 142 44 414 334
Other income 260 103 869 427
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Total 23,119 13,189 59,318 36,793
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Losses and expenses
Losses and loss adjustment
expenses 11,646 5,877 29,690 12,428
Policy acquisition costs 4,271 2,419 11,861 6,301
Other underwriting expenses 3,901 3,004 12,136 11,451
Litigation settlement
expenses -- 1,314 200 1,314
Interest expense 120 219 406 234
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Total 19,938 12,833 54,293 31,728
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Operating income 3,181 356 5,025 5,065
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Income tax expense 1,253 213 1,698 1,520
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Net income $1,928 $143 $3,327 $3,545
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Average number of shares
of common stock
outstanding 7,656 7,103 7,657 7,160
Net income per share $0.25 $0.02 $0.43 $0.50
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CONTACT: Intercargo Corporation, Schaumburg Lawrence P. Goecking, 708/517-2990, ext. 500 |
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