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 GREENVILLE, S.C., Nov. 15 /PRNewswire/ -- Insignia Financial Group, Inc. (NASDAQ: IFGI) today reported net income before extraordinary item for the third quarter of 1993 of $1,108,000 ($.15 per share) compared with $50,000 ($0.01 per share) for the same period in 1992.
 Third quarter 1993 net income figures include a one-time charge of $1,500,000 associated with the previously disclosed termination of certain consulting agreements. Net income before extraordinary item for the first nine months of 1993 was $3,026,000 ($.47 per share), a 483 percent increase compared with $519,000 ($.11 per share) in 1992. After including extraordinary gains resulting from the retirement of debt, 1992 net income was $172,000 ($.03 per share) for the third quarter and $1,617,000 ($.34 per share for the nine months.
 Commenting on the third quarter and nine months results, Andrew L. Farkas, chairman and CEO, said: "Insignia's 1993 financial performance continues to be consistent with our expectations. The results include the full nine months' effects of the acquisitions of certain of the operations of Angeles Corporation, First Resource Realty and several other entities and the first full quarter of the acquisition of a portfolio from Security Properties Investments, Inc., as of June 30, 1993. We continue to examine a number of additional acquisition opportunities."
 Third quarter 1993 revenues increased 136 percent to $15.3 million compared with $6.5 million in 1992. Revenues of $37.0 million for the first nine months of 1993 increased 83 percent over the year earlier. In the third quarter of 1993, the company completed a refinancing of approximately $160 million of indebtedness of 29 properties controlled by the company or its affiliates. In connection with this transaction, a subsidiary of the company received advisory fees of approximately $1,955,000.
 Insignia's operating activities generated cash flow during the first nine months of 1993 of $9.2 million, an increase of 121 percent over the $4.1 million during the same period in 1992.
 In October 1993, the company successfully completed a public offering in which it sold 2,955,000 shares of Class A Common Stock along with 1,530,000
shares being sold by certain stockholders. The selling price of the stock was $16.00 per share, and the company received approximately $44 million in cash after the payment of certain underwriting costs. The proceeds are being used to repay all of its long-term indebtedness, including the deferred portion of certain acquisition costs, to redeem 100 percent of its outstanding preferred stock and options relating thereto, and to terminate certain consulting agreements. The $1,500,000 one-time cost of such termination was accrued in the third quarter of 1993. The remaining net offering proceeds of approximately $20 million together with unrestricted cash at Sept. 30 of approximately $13 million provides approximately $33 million for acquisitions and other corporate uses.
 As a direct result of the use of proceeds of the offering, the company will include an extraordinary charge of approximately $420,000 ($252,000 after applicable income taxes) in its fourth quarter 1993 figures resulting from a combination of (i) the previously disclosed write-off of unamortized loan costs relating to indebtedness retired from offering proceeds and (ii) the successful retirement of certain obligations at a discount.
 Insignia Financial Group, Inc. is a fully integrated real estate service organization performing property management, asset management, investor services, partnership administration, mortgage banking, and real estate investment banking services for various ownership entities, including approximately 600 limited partnerships having approximately 132,000 limited partners. Insignia is the largest manager of multifamily residential properties in the United States and is a significant manager of commercial property. Insignia commenced operations in December 1990 and since then has grown to provide property and/or asset management services for more than 1,000 properties, which include approximately 135,000 residential units and approximately 20 million square feet of commercial space, located in more than 400 cities in 44 states.
 Quarter ended Sept. 30 1993 1992
 Revenues $15,285,000 $ 6,481,000
 Income 1,108,000 50,000
 Extraordinary credit --- 122,000(b)
 Net income 1,108,000 172,000
 Average shares(a) 7,235,061 5,970,797
 Share earn(a)
 Income .15 .01
 Net income .15 .01
 9 mos. ended Sept. 30 1993 1992
 Revenues $37,038,000 $20,207,000
 Income 3,026,000 519,000
 Extraordinary credit --- 1,098,000(b)
 Net income 3,026,000 1,617,000
 Average shares(a) 6,450,538 4,808,787
 Share earn(a)
 Income .47 .11
 Net income .47 .34
 (a) Reflects 1-for-3 reverse split as of Aug. 1.
 (b) Gain on retirement of debt.
 -0- 11/15/93
 /CONTACT: Ronald Uretta, chief financial officer, Insignia Financial Group, 803-239-1692/

CO: Insignia Financial Group, Inc. ST: South Carolina IN: SU: ERN

BR-RA -- AT008 -- 4486 11/15/93 13:40 EST
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Publication:PR Newswire
Date:Nov 15, 1993

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