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BROAD INC. REPORTS RECORD EARNINGS FOR FISCAL 1991; EARNINGS PER SHARE RISE 29 PERCENT

         BROAD INC. REPORTS RECORD EARNINGS FOR FISCAL 1991;
                 EARNINGS PER SHARE RISE 29 PERCENT
    LOS ANGELES, Nov. 21 /PRNewswire/ -- Broad Inc. (NYSE: BRO), a leading financial services company that caters to the fast-growing retirement savings market, today reported record audited net income of $42.1 million or $1.32 per share for the 12 months ended Sept. 30, 1991, up 29 percent on a per share basis from the $33.4 million or $1.02 per share reported for fiscal 1990.
    Reflecting growth in assets under management to approximately $13 billion and continued operating progress, the company said operating net income (before net realized investment losses) was $72.5 million or $2.28 per share, compared to $52.8 million or $1.60 per share the prior year.
    Fourth quarter net income was $11.6 million or $.36 per share, up from $9.5 million or $.29 per share in 1990, reflecting the highest quarterly earnings since the company's corporate restructuring in 1989.
    In line with this growth, the company's book value increased to $12.24 per share from $9.98 per share at year-end 1990.
    Broad Inc. Chairman, President and Chief Executive Officer Eli Broad attributed 1991's gains to ongoing cost-containment efforts, a lower  cost of funds as a result of steadily declining interest rates during 1991, and increases in both net investment and fee income. Commenting on asset quality, he indicated that the market value of the company's portfolio was approximately equal to its cost and that non-investment grade bonds, as rated by the major rating agencies, constituted only 3.4 percent of total assets at Sept. 30.
    "In addition, we are particularly pleased with the results from our fee-based businesses, which produced $94.6 million of revenues in 1991.  The addition of these variable annuity, mutual fund, private asset management and retirement trust operations to our traditional annuity business has clearly increased the predictability of earnings in recent periods," Broad said.
    "Based on our progress during fiscal 1991, the company is better- positioned than ever to achieve our goals of increasing assets under management, improving return on investment and significantly enhancing shareholder values," Broad said.
    To fuel its growth, in October Broad Inc. received $75 million of net proceeds from the issuance of mandatory conversion preferred stock.  The company anticipates that the new capital will be used to increase its assets through internal growth and acquisitions.
    "Events of the last 18 months have created outstanding opportunities for well-disciplined companies with sufficient capital to acquire quality financial services operations," Broad said.  "We intend to take advantage of these growth opportunities."
    Broad Inc. is an investment grade diversified financial services company whose SunAmerica companies market tax-deferred fixed and variable annuities, mutual funds, investment counseling, trust services and other investments through approximately 24,000 representatives nationwide.
                             BROAD INC.
               Condensed Consolidated Income Statement
                   (In thousands except per share)
                             (Unaudited)
                                     Quarter Ended Sept. 30,
                                    1991                 1990
    Investment income           $181,472             $179,666
    Interest expense            (142,436)            (143,041)
    Dividends paid on preferred
      stock of SunAmerica
      Corp.                       (1,333)              (1,421)
    Net investment income         37,703               35,204
    Net realized investment
      losses                      (9,686)              (6,377)
      Other revenues:
    Variable annuity fees         12,859               11,141
    Asset management fees          5,281                4,710
    Trust fees                     2,597                2,966
    Net retained commissions       4,937                6,941
    Surrender charges              7,106                4,514
    Other income (expenses),
     net                            (608)               4,180
    Total other revenues          32,172               34,452
      Other expenses:
    General and administrative
      expenses                   (31,445)             (40,412)
    Amortization of deferred
      acquisition costs          (11,104)              (6,772)
    Total other expenses         (42,549)             (47,184)
    Pretax income                 17,640               16,095
    Income tax expense            (6,050)              (6,600)
    Net income                   $11,590               $9,495
    Per common share                $.36                 $.29
    Average common shares
      outstanding                 32,289               32,685
                                        Year Ended Sept. 30,
                                    1991                 1990
    Investment income           $741,422             $671,350
    Interest expense            (579,010)            (538,403)
    Dividends paid on preferred
      stock of SunAmerica Corp.   (5,415)              (5,326)
    Net investment income        156,997              127,621
    Net realized investment
      losses                     (46,060)             (29,319)
      Other revenues:
    Variable annuity fees         48,467               34,693
    Asset management fees         17,459               14,644
    Trust fees                    11,602                6,629
    Net retained commissions      17,103               17,963
    Surrender charges             23,464               18,816
    Other income (expenses),
     net                           1,431                7,202
    Total other revenues         119,526               99,947
      Other expenses:
    General and administrative
      expenses                  (122,409)            (114,836)
    Amortization of deferred
      acquisition costs          (40,088)             (27,872)
    Total other expenses        (162,497)            (142,708)
    Pretax income                 67,966               55,541
    Income tax expense           (25,900)             (22,100)
    Net income                   $42,066              $33,441
    Per common share               $1.32                $1.02
    Average common shares
      outstanding                 31,818               32,914
    -0-                            11/21/91
    /CONTACT:  Jana Waring Greer, senior VP of Broad, 310-445-6532/
    (BRO) CO:  Broad Inc. ST:  California IN:  FIN SU;  ERN CH-AL -- LA008 -- 5874 11/21/91 12:08 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Nov 21, 1991
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