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PHH CORPORATION ANNOUNCES RECORD FIRST QUARTER RESULTS; NET INCOME UP 17 PERCENT, EARNINGS PER SHARE UP 14 PERCENT

 HUNT VALLEY, Md., Aug. 23 /PRNewswire/ -- PHH Corporation (NYSE: PHH) today reported fiscal 1994 results for the first quarter which ended July 31, 1993. Net income was $14.8 million, an increase of 17 percent from $12.6 million in the prior year. Earnings per share rose 14 percent, from 74 cents to 84 cents. First quarter revenues of $538.6 million increased 5 percent from $513.3 million a year ago.
 In an overview of the company's performance, Chairman and Chief Executive Officer Robert D. Kunisch said, "We are pleased with the first quarter performance of the corporation in fiscal 1994 and especially with the results of our mortgage banking services segment."
 Discussing the mortgage banking operation, Kunisch said: "During the quarter the servicing portfolio surpassed $12.5 billion. Loan closings increased 91 percent from first quarter a year ago. Our servicing portfolio growth and its quality of loans will provide us with an excellent long-term revenue stream."
 Reporting on the performance of the corporation's relocation and real estate services segment, Kunisch noted: "On a global basis, authorizations to purchase homes and homes sold were down slightly. This was somewhat offset by an increase in the value of homes sold in the U.S. and a decrease in the amount of time taken to sell homes on behalf of our clients. The integration of our recent Canadian acquisition is proceeding according to plan. While our United Kingdom operations continue to be adversely affected by the general economy, reductions in our overall cost structure and an expanding product line are helping this operation."
 Commenting on the worldwide vehicle management business, Kunisch said: "Improvements from fuel and expense management programs and other fee-based vehicle services were offset by a decline in vehicle purchases by our clients. For the near term," he added, "we will continue to see downsizing of major corporate fleets as businesses re-engineer their operations to face intensified global competition and a sluggish world economy."
 Looking ahead, Kunisch said: "Our record first quarter results continue the trend of the past several quarters, and we anticipate solid performance for the year. We remain prepared for a slow to modest economic growth scenario. Corporations worldwide are committed to cost- cutting productivity measures. At the same time they are looking for quality services tailored to their individual requirements. These market dynamics spell opportunity for PHH."
 Founded in 1946, PHH Corporation today is a $4.5 billion transnational business services corporation listed on the New York Stock Exchange. PHH and its operating units provide a broad range of integrated business services to more than 3,000 major corporations and organizations in North America, the United Kingdom and Europe.
 PHH CORPORATION AND SUBSIDIARIES
 Consolidated Statements of Income
 (Thousands of dollars except per share data)
 (Unaudited)
 Three Months Ended
 July 31,
 1993 1992
 Revenues:
 Vehicle management services $288,939 $259,998
 Relocation and real estate services 212,021 225,577
 Mortgage banking services 37,610 27,691
 Total 538,570 513,266
 Operating Expenses:
 Direct costs of operating leases 200,417 165,570
 Costs, including interest,
 of carrying and reselling homes 189,884 200,892
 Direct costs of mortgage
 banking services 11,652 8,786
 Interest 37,892 44,140
 Selling, general and administrative 73,302 71,976
 Total 513,147 491,364
 Operating income 25,423 21,902
 Other expense, net (479) (510)
 Income before income taxes 24,944 21,392
 Income taxes 10,155 8,753
 Net income $ 14,789 $ 12,639
 Net income per share $ 0.84 $ 0.74
 Number of shares used in calculation
 of net income per share (in thousands) 17,677 17,139
 -0- 8/23/93
 /CONTACT: Gene Truett (analysts), 410-771-2463, or Peter Brinch (media), 410-771-2519, both of PHH/


CO: PHH Corporation ST: Maryland IN: FIN SU: ERN

TW-MH -- DC006 -- 4962 08/23/93 09:55 EDT
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Publication:PR Newswire
Date:Aug 23, 1993
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