Printer Friendly

JMC GROUP, INC. REPORTS THIRD QUARTER EARNINGS

 SAN DIEGO, Calif., Oct. 28 -- JMC Group, Inc. (NASDAQ: JMCG) today reported financial results for the third quarter and nine months ended September 30, 1993.
 Revenue in the third quarter was $12,203,069, 22 percent above revenue of $9,977,933 for the comparable period in 1992. After-tax income from continuing operations, excluding a one-time charge, was $1,241,408, or $0.18 per share, in the recent quarter compared to $1,099,480, or $0.15 per share in the third quarter of 1992. The recent quarter results included a pre-tax charge of $575,401, or approximately $352,000 after-tax and $0.05 per share, for the previously announced settlement of an arbitration proceeding with a former financial institution client. Including this one-time charge, reported after-tax income from continuing operations was $889,076, or $0.13 per share.
 Net income for the third quarter was $691,076, or $0.10 per share, and included a charge of $198,000 after-tax, or $0.03 per share, to establish an additional reserve for an unreconciled bank account, identified when the parent company took possession of the accounting records of the securities operations which were divested in the second quarter.
 For the nine months ended September 30, 1993, revenue totalled $38,932,289, 34 percent above revenue for the same period in the prior year. After-tax income from continuing operations was $4,076,628, or $0.58 per share, in 1993 compared with $3,408,230, or $0.45 per share, earned through the same period in 1992. Net income for the nine months, including the results of the securities operations, was $4,591,532, or $0.65 per share for the first nine months of 1993, versus $3,122,365, or $0.41 for the comparable period last year.
 "Our quarterly results reflected a 26 percent increase in annuity and mutual funds sales," commented James K. Mitchell, chairman and chief executive officer. "Gross insurance product and mutual funds sales were $188 million in the 1993 third quarter.
 "As previously disclosed, an arbitration settlement with a former client resulted in a $0.05 per share charge to our after-tax income in the third quarter. This arbitration arose out of a 1987 agreement, and we have since amended all client contracts to eliminate the possibility of a similar situation recurring. While we were disappointed with the short-term financial impact, longer-term, the assets that JMC acquired under the ruling will provide positive cash flow to the company."
 "In late September, we began on schedule an annuity and mutual funds sales program at Sumitomo Bank, based in San Francisco.
 "We also initiated in October an annuity and mutual funds sales program at River City Bank, an eight-branch financial institution based in Sacramento, California. This new client is being served through the JMC distribution center near Sacramento which currently handles the Sacramento Savings and Sumitomo accounts, enabling us to leverage on an established operation. We continue to aggressively pursue new client acquisition opportunities and are optimistic about our continued growth," Mitchell concluded.
 JMC Group, Inc., through its wholly-owned subsidiary James Mitchell & Co., is a leading marketer of annuities and other insurance products and mutual funds to customers of financial institutions.
 JMC GROUP INC. Financial Highlights
 THIRD QUARTER YEAR TO DATE
 1993 1992 1993 1992
 Total revenue 2,203,069 9,977,933 38,932,289 28,959,467
 Total operating
 expenses (10,645,748) (8,112,991) (31,868,183) (23,022,244)
 Income from
 continuing
 operations
 before income
 taxes and
 accounting
 change 1,557,321 1,864,942 7,064,106 5,937,223
 Provision for
 income taxes (668,245) (765,462) (2,987,478) (2,528,993)
 Income from
 continuing
 operations before
 accounting change 889,076 1,099,480 4,076,628 3,408,230
 Loss from
 discontinued
 operations, net
 of income
 tax benefit (198,000) (301,937) (198,000) (470,865)
 Gain on disposal
 of securities
 businesses 0 0 712,904 0
 Cumulative effect
 of change in
 accounting for
 income taxes 0 0 0 185,000
 Net income 691,076 797,543 4,591,532 3,122,365
 Earnings per share:
 Income from
 continuing
 operations before
 accounting change $ 0.13 $ 0.15 $ 0.58 $ 0.45
 Discontinued
 operations ($ 0.03) ($ 0.04) ($ 0.03) $ 0.06)
 Gain on sale of
 securities
 businesses $ 0.00 $ 0.00 $ 0.10 $ 0.00
 Accounting change $ 0.00 $ 0.00 $ 0.00 $ 0.02
 Net income $ 0.10 $ 0.11 $ 0.65 $ 0.41
 Weighted average
 shares outstanding
 primary and
 fully diluted 7,055,592 7,571,473 7,039,895 7,602,798
 -0- 10/28/93
 /NOTE TO EDITORS: The consolidated balance sheets table will follow shortly./
 /CONTACT: Doug Sherk or Jenifer Kirtland, 415-296-7383; or Michele Katz or Jill Moskowitz, 212-850-5600, all of Morgen-Walke for JMC/
 (JMCG)


CO: JMC Group Inc. ST: California IN: FIN SU: ERN

SH-BR -- SF012 -- 8136 10/28/93 16:23 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 28, 1993
Words:822
Previous Article:ACRES GAMING INCORPORATED REGISTRATION STATEMENT BECOMES EFFECTIVE
Next Article:CAMDEN HOUSE ANNOUNCES MAJOR FALL EVENT OF VINTAGE FILM POSTERS AND MOVIE MEMORABILIA ON NOV. 6 AND 7
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters