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PHH ANNOUNCES NET INCOME INCREASE OF 10 PERCENT FOR THIRD QUARTER AND DECLARES 130TH CONSECUTIVE DIVIDEND PAYMENT

PHH ANNOUNCES NET INCOME INCREASE OF 10 PERCENT FOR THIRD QUARTER
 AND DECLARES 130TH CONSECUTIVE DIVIDEND PAYMENT
 HUNT VALLEY, Md., Feb. 24 /PRNewswire/ -- PHH Corporation (NYSE: PHH) today reported a 10 percent increase in net income and earnings per share for its third quarter ended Jan. 31, 1992. Net income was $13.3 million and earnings per share were 78 cents compared with $12.0 million and 71 cents in the third quarter of the prior year. Revenues for the quarter were $482 million compared with $489 million in the prior year period.
 Year-to-date, net income was $35.1 million vs. $34.4 million. Earnings per share were $2.06 vs. $2.03 in the prior year. Revenues for the first nine months were $1.45 billion compared with $1.48 billion.
 Chairman and Chief Executive Officer Robert D. Kunisch said: "PHH's overall results for the quarter were gratifying despite the difficult economic environment. In particular, our mortgage banking services business has produced outstanding profit results."
 Discussing the vehicle management services segment, Kunisch said: "Units under management worldwide are slightly above prior year levels. In the United States and Canada, our newly expanded diversified fee-based services helped offset the decline in vehicle purchase orders, and our fuel management and cost control programs continued to produce excellent results. Also our European vehicle operations are performing above last year's levels."
 Commenting on the company's relocation and real estate management services segment, Kunisch said: "A modest decline in home closings was partially offset by an increase in the value of the transferee homes sold. The integration of two recently acquired relocation companies is going smoothly, and we are encouraged by an increase in worldwide relocation authorizations because of the acquisitions and as a result of strong new client signings."
 Reporting on the performance of PHH US Mortgage Corporation, Kunisch added: "We are extremely pleased with the outstanding results from this business. Loan closings are 40 percent above last year's record high levels, and the servicing portfolio is now approaching $7 billion. We are very optimistic about the future growth of our mortgage banking services operations. In less than four years it has become one of PHH's fastest growing business units, serving a broad range of affinity groups, organizations and corporate and government clients."
 Looking ahead, Kunisch said: "Although the length and depth of the recession have posed considerable challenges for PHH and its clients, we are optimistic that our improving financial results will continue into the future. Therefore, we will continue our efforts to enhance our core product offerings and bring new fee-based services to market. Our long-term focus remains on building shareholder value and returning to historical levels of growth."
 The board of directors of PHH Corporation has declared a regular quarterly dividend of 30 cents per share on the company's common stock. The dividend is payable April 30, 1992, to shareholders of record April 10, 1992, and is the same as that last paid in January 1992. This dividend represents the 130th consecutive quarterly dividend to be paid by the business services company.
 Founded in 1946 as a professional fleet management services company, PHH today is a $4 billion transnational corporation listed on the New York, London and Toronto Stock Exchanges. PHH Corporation and its operating units provide a broad range of business services to more than 2,000 corporations and organizations in North America, the United Kingdom and Western Europe.
 PHH CORPORATION AND SUBSIDIARIES
 Consolidated Statements of Income (Unaudited)
 (Thousands of dollars except per share data)
 Three Months Nine Months
 Ended Jan. 31, Ended Jan. 31,
 1992 1991 1992 1991
 Revenues:
 Vehicle management
 services $259,276 $260,242 $736,285 $780,438
 Relocation and real
 estate management
 services 222,834 228,806 714,640 704,345
 Total Revenues 482,110 489,048 1,450,925 1,484,783
 Operating Expenses:
 Direct costs of
 operating leases 158,056 150,974 441,530 457,888
 Cost of carrying and
 reselling homes 172,875 186,024 570,958 558,051
 Interest 45,934 60,925 145,477 198,138
 Selling, general and
 administrative 82,572 69,965 232,467 211,705
 Total Operating
 Expenses 459,437 467,888 1,390,432 1,425,782
 Operating income 22,673 21,160 60,493 59,001
 Other expense, net (531) (510) (1,692) (1,270)
 Income before income taxes 22,142 20,650 58,801 57,731
 Income taxes 8,815 8,673 23,732 23,326
 Net income $ 13,327 $ 11,977 $ 35,069 $ 34,405
 Net income per share $0.78 $0.71 $2.06 $2.03
 Number of shares used
 in calculation of net
 income per share (in
 thousands) 17,062 16,935 17,062 16,935
 -0- 2/24/92
 /CONTACT: Peter Brinch of PHH Corporation, 410-771-2519/
 (PHH) CO: PHH Corporation ST: Maryland IN: SU: ERN DIV


MH -- DC017 -- 1929 02/24/92 13:12 EST
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Date:Feb 24, 1992
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