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/C O R R E C T I O N -- FIRST COLONY CORPORATION/

 In DC035, First Colony Reports Third Quarter and Nine Months Results, moved yesterday, Oct. 27, we are advised by the company that the 14th graph, first line, should read "At Sept. 30, 1993, compared with year-end 1992, shareholders' equity reached $1,058 million, or $19.83 per share, up 19 percent," rather than "$21.46 per share, up 29 percent," as originally issued.
 In the Financial Highlights, therefore, the Shareholders' equity (per share) in Other Data should also read "$19.83" for 9/30/93 and "19" for Pct. Change.
 The full corrected text of the original release follows:
 FIRST COLONY REPORTS THIRD QUARTER AND NINE MONTHS RESULTS
 LYNCHBURG, Va., Oct. 27 /PRNewswire/ -- First Colony Corporation (NYSE: FCL) today reported net income of $34.2 million, or 69 cents per share for 1993's third quarter, down 30 percent from $49.0 million, or 99 cents per share in the third quarter of 1992. This decrease resulted primarily from a one-time deferred tax adjustment due to the federal tax legislation passed in August and increased amortization costs related to investment gains in the third quarter.
 Pre-tax operating income, which excludes debt service cost, realized investment gains and related amortization costs, was $40.4 million for the quarter, up slightly from $40.3 million a year ago.
 After-tax operating income for the quarter was $26.0 million, or 52 cents per share (54 cents per share excluding the retroactive tax increase relating to the first six months of 1993), down 9 percent from $28.7 million, or 58 cents per share. After-tax results were affected by a higher effective tax rate in 1993. Including debt service cost, after-tax operating income for the third quarter was $24.2 million, or 49 cents per share (51 cents per share excluding the retroactive tax increase). There was no debt service cost in the prior period.
 After-tax realized investment gains net of related amortizations were $17.4 million for the quarter vs. $20.3 million a year earlier. Realized investment gains have resulted principally from involuntary calls in the bond portfolio and were reduced by related amortization of deferred acquisition costs and value of acquired insurance in force (VOB).
 During the third quarter, the company amortized $19.5 million, or 26 cents per share after-tax, of its $22.0 million VOB asset for single premium immediate annuities (SPIAs) against realized investment gains emanating from continuing calls in the bond portfolio. VOB is an intangible asset similar to deferred acquisition costs and represents the present value of the estimated future profits of the SPIA business in force. This VOB was established in 1982 in connection with the acquisition of First Colony by its former parent, Ethyl Corporation.
 For the first nine months of 1993, net income was $146.9 million, or $2.97 per share, up 22 percent compared with $120.4 million, or $2.44 per share a year earlier. Pre-tax operating income, which excludes debt service cost, realized investment gains and related amortization costs, was $124.9 million, up 6 percent from $118.1 million for 1992.
 After-tax operating income for the nine months of $82.0 million, or $1.66 per share, was down 2 percent from $83.5 million, or $1.69 per share in 1992. Including debt service cost, after-tax operating income for the nine months was $76.7 million, or $1.55 per share. There was no debt service cost in the first nine months of 1992.
 After-tax realized investment gains net of related amortization costs for the nine-month period were $77.5 million, up from $36.6 million a year earlier.
 Net income for the quarter and nine months benefited from the growth of life and annuity business and accelerated income from collateralized mortgage obligations (CMOs) in the bond portfolio. These benefits were offset by higher mortality in the third quarter, lower income from the reinvestment of involuntary bond call proceeds, debt service cost, a higher effective tax rate and the one-time deferred tax adjustment in the third quarter. Net realized investment gains after related amortization costs lowered net income in the third quarter, but increased net income for the first nine months.
 Federal tax legislation enacted in August 1993, increased tax rates by 1 percent point retroactive to Jan. 1. Third quarter results reflect a retroactive tax increase for the first six months of $0.8 million, or 2 cents per share, in operating earnings and $1.1 million, or 2 cents per share, in net realized and unrealized investment gains. Accounting rules for income taxes also require the existing deferred income tax liability to be increased for the 1 percent point tax rate increase, resulting in a one-time $7.3 million, or 15 cents per share, deferred tax adjustment in the third quarter.
 Sales of single premium immediate annuities of $102.4 million were up 8 percent for the third quarter, annual premium life insurance sales of $23.9 million were down 1 percent and single premium deferred annuity sales of $17.8 million decreased 76 percent. For the nine months, single premium immediate annuity sales of $305.1 million increased 17 percent, annual premium life insurance sales of $70.9 million were down 2 percent and single premium deferred annuity sales of $140.2 million were down 3 percent.
 For the quarter, SPIA sales continued strong in the current low interest rate environment which is very attractive for the profitability of new immediate annuity sales. Annual premium life sales were flat reflecting slow industry growth and the current competitive market. The decrease in SPDA sales results from the company's commitment to maintain an acceptable profit level on deferred annuities.
 Total revenues for the quarter of $385.9 million were up 16 percent from a year ago. For the nine months, total revenues were $1,123.1 million, up 24 percent. The increase in revenues includes higher net investment income, realized investment gains and premiums.
 At Sept. 30, 1993, compared with year-end 1992, shareholders' equity reached $1,058 million, or $19.83 per share, up 19 percent from $16.63; assets were $8.2 billion, up 11 percent; and life insurance in force amounted to $110 billion, up 14 percent.
 Bruce C. Gottwald, Jr., chairman and chief executive officer of First Colony Corporation, said: "Third quarter performance was mixed as we experienced higher mortality, and involuntary calls in the bond portfolio continued at their high levels compressing investment margins. Pre-tax operating income was up slightly over 1992 and immediate annuity sales continued to be very strong."
 First Colony Corporation is a Richmond, Va.-based holding company which owns First Colony Life Insurance Company and its wholly owned subsidiary, American Mayflower Life Insurance Company of New York.
 FIRST COLONY CORPORATION
 Three and Nine Months Financial Highlights (000's)
 Pct.
 Three Months Ended Sept. 30, 1993 1992 Change
 Income:
 Pre-tax operating income (a) $ 40,406 $ 40,341 --
 After-tax operating income 25,975 28,679 (9) pct.
 After-tax operating income including
 debt service cost 24,205 28,679 (16)
 Net realized investment gains (b) 17,360 20,298 (14)
 Tax adjustment (c) (7,321) -- --
 Net income 34,244 48,977 (30)
 Per Share:
 After-tax operating income $0.52(d) $0.58 (9)
 After-tax operating income including
 debt service cost 0.49(d) 0.58 (16)
 Net realized investment gains 0.35 0.41 (14)
 Tax adjustment (c) (0.15) -- --
 Net income 0.69 0.99 (30)
 Pct.
 Nine Months Ended Sept. 30, 1993 1992 Change
 Income:
 Pre-tax operating income (a) $124,885 $118,059 6 pct.
 After-tax operating income 82,010 83,489 (2)
 After-tax operating income including
 debt service cost 76,706 83,489 (8)
 Net realized investment gains (b) 77,506 36,612 112
 Tax adjustment (c) (7,321) -- --
 Net cumulative effect
 of accounting changes -- 332 --
 Net income 146,891 120,433 22
 Per share
 After-tax operating income (a) $1.66 $1.69 (2)
 After-tax operating income including
 debt service cost 1.55 1.69 (8)
 Net realized investment gains (b) 1.57 0.74 112
 Tax adjustment (c) (0.15) -- --
 Net cumulative effect
 of accounting changes -- 0.01 --
 Net income 2.97 2.44 22
 Other Data: 9/30/93 12/31/92 Pct. Change
 Assets (in billions) $ 8.2 $ 7.4 11
 Shareholders' equity (per share) 19.83 16.63 19
 Life insurance in force (in billions) 109.7 96.0 14
 (a) Excludes debt service cost, realized investment gains and related amortization.
 (b) Realized investment gains after related amortization and income taxes.
 (c) One-time tax adjustment to deferred tax liability due to Aug. 1, 1993, tax legislation
 (d) $0.54 and $0.51, respectively excluding $0.02 retroactive tax adjustment
 -0- 10/28/93
 /CONTACT: Frank G. Land of First Colony, 804-948-5293/
 (FCL)


CO: First Colony Corporation ST: Virginia IN: INS SU: ERN

DC -- DC017 -- 7948 10/28/93 12:55 EDT
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Date:Oct 28, 1993
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