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LEUCADIA NATIONAL ANNOUNCES NINE MONTHS 1991 RESULTS

       LEUCADIA NATIONAL ANNOUNCES NINE MONTHS 1991 RESULTS
    NEW YORK, Nov. 14 /PRNewswire/ -- Leucadia National Corporation (NYSE, PSE: LUK) today announced its unaudited operating results for the nine month period ended Sept. 30, 1991.  Net income for the nine month period ended Sept. 30, 1991 was $28,733,000 or $2.49 per common share ($2.48 on a fully diluted basis) compared to $48,541,000 or $3.92 per common share for the nine month period ended Sept. 30, 1990.
    Net income for the three month period ended Sept. 30, 1991 was $14,825,000 or $1.28 per common share ($1.27 on a fully diluted basis) compared to $11,676,000 or $.96 per common share for the three month period ended Sept. 30, 1990.
    The periods ended in 1991 include the results of operations of Colonial Penn Group, Inc. ("Colonial Penn") since its acquisition on Aug. 16, 1991.  For the period from Aug. 16, 1991 to Sept. 30, 1991, Colonial Penn contributed approximately $15,823,000 to consolidated results of operations (exclusive of financing costs).
    Income from continuing operations was $27,097,000 or $2.35 per common share ($2.34 on a fully diluted basis) for the nine month period ended Sept. 30, 1991 compared with $65,958,000 or $5.33 per common share for the nine month period ended Sept. 30, 1990.  Income from continuing operations for the nine month period ended Sept. 30, 1990 includes credits of approximately $40,000,000, representing the excess of the reported net assets of Cambrian & General Securities (a consolidated subsidiary) over the company's investment in Cambrian & General Securities and $14,777,000 representing a change in the amortization period of certain of the company's investment oriented insurance products.  Income from continuing operations for the nine month period ended Sept. 30, 1991 includes income of approximately $6,600,000 representing additional payments on an investment and elimination of litigation reserves no longer required applicable to Cambrian and General Securities.
    Included in income from continuing operations for the nine month periods ended Sept. 30, 1991 and 1990 were pre-tax net securities gains of $4,287,000 and $10,174,000, respectively.
    As previously announced, the results of statistical studies of recent trading stamp redemptions have indicated that the pattern of trading stamp redemptions may have changed and that the liability for unredeemed trading stamps at Dec. 31, 1989 may have been approximately $34,000,000 (after only a minor adjustment for redemption service expenses, which do not vary significantly with changes in redemptions) in excess of the amount that ultimately will be required to redeem trading stamps outstanding at that date.  The company has amortized the apparent excess at Dec. 31, 1989 over a five year period (starting in the third quarter of 1990 and retroactive to Jan. 1, 1990) and provided for redemptions on all 1991 and 1990 sales assuming 83 percent of stamps issued ultimately will be redeemed.  The preliminary results of an internal study completed in 1991 indicate that such aggregate unamortized excess was approximately $55,000,000 at Dec. 31, 1990. Although the company believes a significant change in redemption patterns has occurred, the amount of the excess may be different than is indicated by the preliminary results of this internal study. Accordingly, the company has amortized the additional apparent excess (approximately $28,000,000) over a five year period (starting in the third quarter of 1991 and retroactive to Jan. 1, 1991) and has provided for redemptions on all 1991 sales assuming 75 percent of stamps issued ultimately will be redeemed.  The amount of amortization of such aggregate apparent excess (and the adjustment resulting from the change in estimated redemptions on sales in 1991 and 1990) reflected in results of continuing operations was approximately $10,300,000 and $4,200,000 for the nine month periods ended Sept. 30, 1991 and 1990, respectively, and approximately $7,000,000 and $4,200,000 for the three month periods ended Sept. 30, 1991 and 1990, respectively.
    In recent years, the company has expended substantial sums on development of an electronic database marketing program.  The company has decided to discontinue development of the program.  Included in results of continuing operations are costs related to the database marketing program (including close down costs in 1991) of $8,100,000 and $3,200,000 for the nine month periods ended Sept. 30, 1991 and 1990, respectively, and $3,200,000 and $1,200,000 for the three month periods ended Sept. 30, 1991 and 1990, respectively.
    Income from discontinued operations was $1,636,000 or $.14 per common share for the nine month period ended Sept. 30, 1991 compared to a loss of $17,417,000 or $1.41 per common share for the nine month period ended Sept. 30, 1990.  Discontinued operations for the nine month period ended Sept. 30, 1991 reflects the elimination of a reserve ($2,500,000) applicable to a commitment to fund a loan to a former subsidiary, as the company believes it is unlikely to sustain a loss on such commitment.  Discontinued operations for the nine month period ended Sept. 30, 1990 reflect the loss on disposition and results of operations of the company's traditional life insurance business which was sold in 1990.
    The Financial Accounting Standards Board has issued statement on Financial Accounting Standards No. 106 ("SFAS 106") that requires companies to accrue the cost of providing certain post employment benefits during the employees' period of service.  SFAS 106 is required to be implemented no later than Jan. 1, 1993.  Based on preliminary actuarial valuations, the company estimates that the amount of the unrecorded liability determined under the provisions of SFAS 106 (net of amounts applicable to minority interest) is approximately $9,100,000 at Dec. 31, 1990.  The company has not determined when it will implement SFAS 106 and is examining ways to minimize the liability.
    Leucadia National Corporation is a holding company for its consolidated subsidiaries engaged in life insurance (through Charter National Life Insurance Company of St. Louis, First Charter Life Insurance Company of New York, Colonial Penn Life Insurance Company, Colonial Penn Annuity and Life Insurance Company and Intramerica Life Insurance Company), property and casualty insurance (through Colonial Penn Insurance Company, Colonial Penn Heritage Insurance Company and Colonial Penn Franklin Insurance Company), manufacturing (principally through its Leucadia, General Marble and Electri-cord divisions) and banking and lending (principally through American Investment Bank, N.A.) Through its approximately 62 percent interest in PHLCORP, Inc. the company is also engaged in trading stamps (through the Sperry and Hutchinson Company, Inc.), motivation services (through S&H Motivation, Inc.) and property and casualty insurance (through Empire Insurance Company and Allcity Insurance Company).  The company also currently has equity interests of more than 5 percent in the following domestic publicly owned companies.  Carmike Cinemas, Inc. (10 percent of Class A shares), Jones Plumbing Systems, Inc. (19 percent), Olympus Capital Corporation (24 percent) and Transportation Capital Corp. (13 percent).
             LEUCADIA NATIONAL CORPORATION AND SUBSIDIARIES
                           Summary of Results
            (In thousands, except per share data - unaudited)
      Period ended              Three months          Nine months
       Sept. 30                1991       1990       1991       1990
    Revenues                 $321,445   $167,670   $675,252   $515,136
    Income from cont. opers.   15,037     12,043     27,097     65,958
    Income (loss) from
     discont. opers.             (212)      (367)     1,636    (17,417)
    Net income                 14,825     11,676     28,733     48,541
    Earnings (loss)
     per common and
     dilutive common
     equivalent share:
     Income from cont. opers.    1.30        .99       2.35       5.33
     Income (loss) from
     discont. opers.             (.02)      (.03)       .14      (1.41)
    Net income                   1.28        .96       2.49       3.92
    Number of shares
     in calculation            11,582     12,170     11,529     12,376
    Fully diluted earnings
     (loss) per common share:
     Income from cont. opers.    1.29        .99       2.34       5.33
     Income (loss) from
     discont. opers.             (.02)      (.03)       .14      (1.41)
    Net income                   1.27        .96       2.48       3.92
    Number of shares in
     calculation               11,692     12,170     11,601     12,377
    (A) Results of operations for periods ended in 1991 include Colonial Penn Group, Inc. ("Colonial Penn") since its acquisition on Aug. 16, 1991.  Colonial Penn contributed $15,823,000 to consolidated results of operations (exclusive of financing costs) for the periods ended in 1991.
    (B) Includes net securities gains of $4,287,000 and $10,174,000 for the nine month periods ended Sept. 30, 1991 and 1990, respectively, and $250,000 and $11,139,000 for the three month periods ended Sept. 30, 1991 and 1990, respectively.
    -0-                 11/14/91
    /CONTACT:  R. Klindtworth of Leucadia National, 212-460-1900/
    (LUK) CO:  Leucadia National Corporation ST:  New York IN:  FIN SU:  ERN SM-OS -- NY031 -- 4392 11/14/91 11:32 EST
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Date:Nov 14, 1991
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