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BROAD INC. REPORTS 32 PERCENT QUARTERLY EARNINGS GROWTH; NINE-MONTH SALES EXCEED $2 BILLION

 BROAD INC. REPORTS 32 PERCENT QUARTERLY EARNINGS GROWTH;
 NINE-MONTH SALES EXCEED $2 BILLION
 LOS ANGELES, July 31 /PRNewswire/ -- Broad Inc. (NYSE: BRO) today announced a 32 percent increase in third-quarter earnings per share, reporting net income of $17.3 million or $.45 per share for the quarter ended June 30, 1992, compared to $10.8 million or $.34 per share a year ago.
 For the nine months ended June 30, the company reported a 29 percent increase in earnings per share, with net income rising to $47.3 million or $1.24 per share from $30.5 million or $.96 per share in 1991. Nine-month progress was fueled by a 20 percent increase in fee income, an 18 percent increase in net investment income and tight expense control, whereby general and administrative expenses rose only 2 percent.
 Chairman and Chief Executive Officer Eli Broad said the company experienced strong quarterly growth in sales. Third-quarter sales reached a new record of $807.4 million, up 22 percent from year- earlier sales of $662.6 million, primarily due to a 74 percent increase in sales of the company's fee-based variable annuities and mutual funds. In keeping with this trend, quarterly fee income rose to $28.2 million from $24.4 million the prior year.
 Total sales for the nine-month period showed an even greater improvement, rising 62 percent to $2.02 billion from $1.25 billion in 1991. Approximately 53 percent of these sales were from fee-based products, where the company has placed added emphasis in recent years. The remaining 47 percent reflected sales of fixed annuities and guaranteed investment contracts.
 Assets owned or under management exceeded $15 billion for the first time, up from just under $13 billion nine months earlier. Following the issuance of new preferred stock during the quarter, shareholders' equity rose to $651 million, up 72 percent since June 1991.
 Third-quarter net investment income, at $52.5 million, also showed a significant increase, rising 40 percent from the prior year's $37.5 million. The company's annual effective net investment spread on average invested assets was 2.90 percent for the quarter and 2.67 percent for the nine-month period.
 "In recent months, we have continued to improve the overall quality of our investment portfolio," said Broad. "During the quarter, while reporting record bottom-line results, we also reduced the carrying value of defaulted investments (including bonds, senior secured loans and mortgages) to only 1.5 percent of the company's $9.1 billion of invested assets, less than half their level at March 31, 1992 and the lowest quarterly level since June 1990. At quarter-end, the market value of our bond portfolio exceeded its cost by approximately $84 million.
 "With asset quality improvements, the persistent growth of our fee-based businesses and continued cost control, we fully expect Broad Inc. to exceed analysts' earnings per share projections for the fiscal year ending Sept. 30, 1992, on both a net and an operating basis."
 After-tax operating earnings before net realized investment losses were $25.4 million or $.65 per share for the quarter and $1.93 per share for the 1992 nine-month period.
 Average shares outstanding in fiscal 1992 were approximately 6.7 million greater for the quarter and 6.6 million greater for the nine months, primarily due to the issuance of mandatory conversion preferred stock in October 1991.
 Broad Inc. is the parent of the SunAmerica companies, which market fixed and variable annuities, mutual funds, private investment counseling and retirement trust services to the fast-growing preretirement market. At June 30, 1992, it had approximately $15 billion of assets owned or under management and a book value of $13.87 per share.
 BROAD INC.
 Condensed Consolidated Income Statement
 (Unaudited)
 Three months ended June 30,
 1992 1991
 Investment income $189,275,000 $184,856,000
 Interest expense (135,518,000) (145,999,000)
 Dividends paid on preferred stock
 of SunAmerica Corp. (1,255,000) (1,323,000)
 Net investment income 52,502,000 37,534,000
 Net realized investment losses (12,265,000) (10,535,000)
 Fee income:
 Variable annuity fees 14,552,000 12,382,000
 Asset management fees 6,533,000 4,225,000
 Net retained commissions 4,395,000 4,848,000
 Trust fees 2,754,000 2,964,000
 Total fee income 28,234,000 24,419,000
 Other income and expenses:
 Surrender charges 2,679,000 5,706,000
 General and administrative expenses (32,816,000) (29,729,000)
 Amortization of
 deferred acquisition costs (11,892,000) (10,289,000)
 Gain on redemption of Senior
 Subordinated Fixed Rate Notes --- ---
 Other, net (767,000) 441,000
 Total other income and expenses (42,796,000) (33,871,000)
 Pretax income 25,675,000 17,547,000
 Income tax expense (8,400,000) (6,700,000)
 Net income $17,275,000 $10,847,000
 Per common share $0.45 $0.34
 Average common shares outstanding 38,794,000 32,135,000
 Nine months ended June 30,
 1992 1991
 Investment income $554,765,000 $559,950,000
 Interest expense (410,708,000) (436,574,000)
 Dividends paid on preferred stock
 of SunAmerica Corp. (3,810,000) (4,082,000)
 Net investment income 140,247,000 119,294,000
 Net realized investment losses (39,805,000) (36,374,000)
 Fee income:
 Variable annuity fees 42,610,000 35,608,000
 Asset management fees 18,191,000 12,178,000
 Net retained commissions 13,824,000 12,166,000
 Trust fees 8,214,000 9,005,000
 Total fee income 82,839,000 68,957,000
 Other income and expenses:
 Surrender charges 11,421,000 16,358,000
 General and administrative expenses (93,088,000) (90,964,000)
 Amortization of
 deferred acquisition costs (35,877,000) (28,984,000)
 Gain on redemption of Senior
 Subordinated Fixed Rate Notes 3,880,000 ---
 Other, net 731,000 2,039,000
 Total other income and expenses (112,933,000) (101,551,000)
 Pretax income 70,348,000 50,326,000
 Income tax expense (23,000,000) (19,850,000)
 Net income $47,348,000 $30,476,000
 Per common share $1.24 $0.96
 Average common shares outstanding 38,210,000 31,628,000
 -0- 7/31/92
 /CONTACT: Jana Waring Greer, senior VP of Broad, 310-445-6532/
 (BRO) CO: Broad Inc. ST: California IN: FIN SU: ERN


LS-EH -- LA004 -- 5482 07/31/92 10:01 EDT
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