Printer Friendly

GAINSCO REPORTS 46 PERCENT INCREASE IN THIRD QUARTER EARNINGS: NINE MONTH EARNINGS UP 53 PERCENT

 GAINSCO REPORTS 46 PERCENT INCREASE IN THIRD QUARTER EARNINGS:
 NINE MONTH EARNINGS UP 53 PERCENT
 FORT WORTH, Texas, Oct. 22 /PRNewswire/ -- Gainsco, Inc. (AMEX: GNA) today reported significant increases in net income for the third quarter and nine months of 1992.
 Net income for the third quarter of 1992 was $3,370,000, or $.21 per share, an increase of 46 percent over the $2,308,000, or $.14 per share, earned in 1991. For the nine months ended Sept. 30, 1992, net income increased 53 percent to $9,527,000, or $.58 per share, from the $6,233,000, or $.38 per share, recorded in 1991. Gross premiums written for the nine months ended Sept. 30, 1992 were 34 percent above the comparable 1991 period.
 All per share data has been adjusted to reflect a 5 percent stock dividend paid on July 15, 1992, and a 3-for-2 stock split effected Sept. 1, 1992.
 Commenting on the results, Joseph D. Macchia, chairman of the board, president and chief executive officer, stated, "Gross writings continue to increase and are on target with our goal of an $84-88 million range for the year. Our combined ratio of 80.74 percent, for the nine-months ended Sept. 30, 1992, is currently on the favorable side of our targeted 83-85 percent range. More importantly, we should exceed a 27.5 percent return on beginning equity."
 He added, "It now appears the turn in the commercial property- casualty pricing cycle is imminent. The consensus is that it will occur in 1993. This will produce very favorable results in 1993 for GAINSCO."
 Gainsco, Inc. is a vertically integrated property and casualty insurance company specializing in underwriting and marketing excess and surplus lines. The company's subsidiaries include General Agents Insurance Company of America, Inc., an Oklahoma corporation; General Agents Premium Finance Company, which offers premium financing programs for general agents in connection with their marketing activities; Agents Processing Systems, Inc., which markets a computer software policy management system to general agents; and Risk Retention Administrators, Inc., which assists managing general agents in forming and operating risk retention groups. In addition, General Agents Insurance Company of America, Inc. operates a wholly-owned subsidiary, MGA Insurance Company, Inc., which is the sole owner of MGA Agency, Inc., the company's marketing arm.
 GAINSCO, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Dollars in thousands, except per share data)
 Quarter Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Gross premiums written $19,852 $19,243 $65,014 $48,408
 Net premiums written $19,039 $18,236 $62,355 $44,696
 Premiums earned $19,802 $14,289 $57,211 $37,089
 Net investment income 1,412 1,151 4,015 3,280
 Software sales revenues 139 30 498 726
 Premium finance revenues 133 158 395 394
 Plan service revenues (CAIP) 395 255 1,269 549
 Realized gains 89 45 139 58
 Other income 12 4 26 16
 Total revenues 21,982 15,932 63,553 42,112
 Claims & CAE paid 6,433 4,275 17,803 12,387
 Change in claims & CAE
 reserves 3,284 3,076 10,316 5,788
 Change in deferred acquisition
 costs (37) (1,232) (1,345) (1,884)
 Other expenses 7,563 7,122 23,662 17,955
 Federal income taxes 1,369 383 3,590 1,633
 NET INCOME $ 3,370 $ 2,308 $ 9,527 $6,233
 Net income per share $ .21 $ .14 $ .58 $ .38
 Weighted average shares
 outstanding & common
 stock equivalents 16,334 16,287 16,329 16,287
 Shareholders' equity,
 ending $51,347 $39,841 $51,347 $39,841
 Return for the period on
 beginning of the year
 (In percent)
 shareholders' equity 8.04 6.86 22.72 18.52
 STATUTORY OPERATING RATIOS
 Claim Ratio 48.38 50.55 48.38 48.02
 Expense Ratio 33.47 33.59 32.36 34.07
 Combined Ratio 81.85 84.14 80.74 82.09
 -0- 10/22/92
 /CONTACT: Lynn Morgen or Michele Katz of Morgen-Walke Associates, Inc., 212-986-5900, for Gainsco/
 (GNA) CO: Gainsco, Inc. ST: Texas IN: INS SU: ERN


PS -- NY025 -- 3338 10/22/92 09:10 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 22, 1992
Words:687
Previous Article:CNS, INC. REPORTS THIRD QUARTER SALES AND EARNINGS
Next Article:ITT REPORTS LOWER THIRD QUARTER, NINE MONTH EARNINGS; DECLINES DUE TO SEVERAL LARGE UNUSUAL ITEMS
Topics:


Related Articles
OAKWOOD HOMES REPORTS RECORD SALES, TOTAL REVENUES AND EARNINGS FOR THIRD FISCAL QUARTER AND FOR THE NINE MONTHS ENDED JUNE 30, 1992
GAINSCO REPORTS 56 PERCENT INCREASE IN SECOND QUARTER EARNINGS; SIX MONTH EARNINGS UP 57 PERCENT
STRYKER PROFITS UP 47 PERCENT FOR QUARTER ENDED SEPT. 30, 1992
UNION PACIFIC CORPORATION ACHIEVED RECORD THIRD-QUARTER EARNINGS OF $185 MILLION
COSTAR CORPORATION ANNOUNCES RESULTS FOR THE THIRD QUARTER 1992
CORDIS' THIRD QUARTER NET INCOME UP 19 PERCENT
GAINSCO REPORTS THIRD QUARTER EARNINGS
GAINSCO REPORTS THIRD QUARTER EARNINGS
HCC INSURANCE HOLDINGS, INC. REPORTS 1994 THIRD QUARTER AND NINE MONTHS EARNINGS
GAINSCO Reports $0.07 Per Share Earnings for Third Quarter; Completes Acquisition of Lalande Group.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters