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GREEN TREE ACCEPTANCE ANNOUNCES FIRST QUARTER RESULTS; COMPLETION OF DEBT EXCHANGE; AND COMMON STOCK OVER-ALLOTMENT SALE

 GREEN TREE ACCEPTANCE ANNOUNCES FIRST QUARTER RESULTS;
 COMPLETION OF DEBT EXCHANGE; AND COMMON STOCK OVER-ALLOTMENT SALE
 ST. PAUL, Minn., April 15 /PRNewswire/ -- Green Tree Acceptance, Inc. (NYSE: GNT) today reported net earnings of $12,695,000, for the quarter ended March 31, 1992. This was a 53 percent increase over earnings of $8,317,000, in the first quarter of 1991. First quarter 1992 earnings per share were $.86, compared with $.51 per share, in 1991.
 Income totaled $51,907,000, compared with $40,423,000, for the first quarter of 1991. The amount of contracts purchased by Green Tree's regional offices approximated $245 million in the first quarter, compared with $227 million in contracts purchased during the first quarter of 1991. First quarter 1991 contract purchases included a $22 million portfolio purchase.
 The company also reported that approximately $260 million of the company's $287.5 million senior subordinated debentures due 1995 were tendered and accepted for exchange by the company for its new senior subordinated notes due 2002. The result of the exchange is to reduce the blended effective yield of the outstanding subordinated debt from 13.10 percent to 10.82 percent over the remaining term of the original subordinated debentures. An extraordinary charge of approximately $17 million will be provided in the second quarter as a result of the exchange and will be ultimately quantified once the new notes commence trading.
 Green Tree also reported that the company's underwriters on its recently completed 3 million common share offering, are today exercising their over-allotment option to purchase an additional 307,400 shares. The company will receive approximately $10.7 million in additional equity after expenses from the sale of such option shares.
 Lawrence M. Coss, Green Tree's chairman, president and chief executive officer said, "We are pleased with each of these events. The first quarter earnings are gratifying and they were principally generated from strong manufactured home loan volume which increased 28 percent. The debt exchange solidifies Green Tree's capital structure through the year 2002 and, combined with the company's equity, provides Green Tree with a long-term capital base of over $500 million and the strongest balance sheet in its history."
 Green Tree Acceptance purchases, pools, sells and services conditional sales contracts for manufactured homes and home improvements through 42 regional offices nationwide. Green Tree currently services approximately 325,000 contracts totaling $5.3 billion in outstanding principal balances. Green Tree's common stock is traded on the New York and Pacific Stock Exchanges under the symbol GNT.
 GREEN TREE ACCEPTANCE, INC.
 CONSOLIDATED STATEMENT OF EARNINGS
 (unaudited)
 Three Months Ended March 31,
 1992 1991
 INCOME:
 Gains on contract sales $73,707,000 $29,539,000
 Provision for losses on
 contract sales (51,380,000) (13,451,000)
 Interest 17,618,000 14,699,000
 Service 7,097,000 6,277,000
 Commissions and other 4,865,000 3,359,000
 51,907,000 40,423,000
 EXPENSES:
 Interest 11,687,000 11,452,000
 Cost of servicing 4,826,000 4,509,000
 General and administrative 14,582,000 10,939,000
 31,095,000 26,900,000
 EARNINGS BEFORE INCOME TAXES 20,812,000 13,523,000
 INCOME TAXES 8,117,000 5,206,000
 NET EARNINGS $12,695,000 $ 8,317,000
 EARNINGS PER COMMON AND COMMON
 EQUIVALENT SHARE $.86 $.51
 WEIGHTED AVERAGE COMMON AND COMMON
 EQUIVALENT SHARES OUTSTANDING 12,436,229 11,635,369
 -0- 4/15/92
 /CONTACT: Melissa Quinn of Padilla Speer Beardsley, 612-871-8877, for Green Tree; or John W. Brink of Green Tree, 612-293-3400 or in New York, 212-752-8338/
 (GNT) CO: Green Tree Acceptance, Inc. ST: Minnesota IN: FIN SU: ERN


AL -- MN005 -- 8646 04/15/92 11:36 EDT
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Publication:PR Newswire
Date:Apr 15, 1992
Words:617
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