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MCORP REPORTS 1991 FINANCIAL RESULTS

 MCORP REPORTS 1991 FINANCIAL RESULTS
 DALLAS, March 30 /PRNewswire/ -- MCorp (PSE: M.P) today reported


a net loss of $42.0 million for 1991 compared with net income of $14.9 million for 1990. MCorp has completed the sale of all of its banking subsidiaries except for one. MCorp is currently the subject of a voluntary reorganization case under Chapter 11 of the United States Bankruptcy Code.
 The 1991 net loss of $42.0 million resulted from a loss from continuing operations amounting to $45.8 million offset by income from discontinued operations of $3.8 million. The net loss from continuing operations resulted primarily from interest income of $26.9 million and other income of $.4 million offset by non-interest expense of $39.4 million and the settlement of certain claims against MCorp in the Chapter 11 reorganization proceedings totalling $33.2 million. The gain on disposal of subsidiaries of $3.7 million represents the recognition of the remaining net deferred gain on the sale of MVestment Corp., which conducted MCorp's trust operations.
 The 1990 net income of $14.9 million resulted from income from continuing operations of $1.2 million and income from discontinued operations of $13.7 million. The results of operations of the remaining bank subsidiaries and MVestment have been combined and reported as "discontinued operations" through their dates of sale or Dec. 31, 1990, which ever occurred first. The income from discontinued operations primarily resulted from a gain of $82.3 million from the sale of the trust operations as reduced by the losses incurred by the banking subsidiaries and the write off of the company's net investment in the remaining banks.
 For the fourth quarter of 1991, the company recorded a net loss of $40.6 million. The net loss for the quarter resulted primarily from the settlement of certain claims against MCorp in the Chapter 11 reorganization proceedings totalling $33.2 million.
 On Sept. 11, 1991 MCorp filed a revised plan for reorganization under Chapter 11 of the U. S. Bankruptcy Code and on Oct. 1, 1991 the Houston Bankruptcy Court approved the disclosure statement describing the plan. Results of Chapter 11 voting indicated that the equity class containing the Series A and Series B Money Market preferred stock had voted to reject the plan. The plan provides that if any equity class votes to reject the plan, no distributions will be made to that class or to any equity class junior to it. On Jan. 7, 1992 the Houston Bankruptcy Court denied confirmation of the plan. Consequently, if the denial of the confirmation of the plan is reversed on appeal and the plan is implemented, no distributions will be made under the plan to holders of MCorp's Money Market cumulative preferred stock, MCorp's $3.50 series cumulative preferred stock or MCorp common stock. MCorp has appealed the denial of confirmation to the U.S. District Court for the Southern District of Texas, which has granted MCorp's motion for expedited appeal.
 MCorp is a Texas-based financial services organization.
 MCORP AND SUBSIDIARIES
 Consolidated Statements of Operations
 (Dollars in thousands, except per share amounts)
 Year ended Dec. 31: 1991 1990 1989
 Interest income $ 26,866 $ 27,594 $ 21,326
 Other income 432 2,346 509
 Total income 27,298 29,940 21,835
 Interest expense 424 -- 15,510
 Personnel expense 7,674 8,237 4,628
 Net occupancy expense 171 496 1,364
 Professional fees 16,482 7,860 10,410
 Net realized losses,
 writedowns and expenses
 of investments and other
 assets held for sale 8,735 10,992 3,569
 Other expense 6,354 1,173 2,368
 Total expense 39,840 28,758 37,849
 (Loss) income from continuing
 operations before claims
 settlements (12,542) 1,182 (16,014)
 Claims settlements:
 Lessors 13,200 -- --
 Data processing 20,000 -- --
 Other 20 -- --
 Total claims settlements 33,220 -- --
 (Loss) income from continuing
 operations (45,762) 1,182 (16,014)
 Discontinued operations:
 Loss from operations -- (8,775) (12,306)
 Write-off of investment in
 bank subsidiaries -- (41,420) --
 Gain on disposal of
 subsidiaries, net of tax 3,747 63,943 --
 Net (loss) income $ (42,015) $ 14,930 $ (28,320)
 Per common share(A):
 (Loss) income from
 continuing operations (1.08) 0.03 (0.38)
 Net (loss) income (0.99) 0.35 (0.67)
 (A) -- Under the proposed joint Chapter 11 Plan of Reorganization, common stockholders may not receive a distribution from the bankruptcy estate of MCorp.
 Consolidated Balance Sheets
 (Dollars in thousands, except per share amounts)
 Dec. 31: 1991 1990
 Assets:
 Cash and cash equivalents $ 309,533 $ 34,315
 Marketable securities
 (market value of $280,890 at
 Dec. 31, 1990) -- 276,043
 Assets held for sale:
 Other investments 55,171 69,700
 Land and other real estate owned 16,292 10,222
 Loans and other 10,371 14,206
 Other assets 14,929 20,289
 Total 406,296 424,775
 Liabilities and stockholders' deficit:
 Liabilities:
 Deferred gain on disposition of
 discontinued operations -- 14,013
 Accounts payable and accrued liabilities 46,886 22,907
 Long-term debt 13,570 --
 Liabilities deferred pursuant to
 Chapter 11 reorganization proceedings:
 Long-term debt 467,460 467,460
 Other liabilities 53,877 53,877
 Total liabilities 581,793 558,257
 Stockholders' deficit:
 Preferred stock; $1.00 par value;
 20 million shares authorized;
 959,920 shares issued; aggregate
 liquidation preference $223,415 and
 $212,085 respectively 960 960
 Common stock; $5.00 par value;
 100 million shares authorized;
 42,790,257 issued 213,951 213,951
 Capital surplus 596,957 596,957
 Accumulated deficit (983,506) (941,491)
 Treasury stock, at cost; 218,660 shares (3,859) (3,859)
 Total stockholders' deficit (175,497) (133,482)
 Total $ 406,296 $ 424,775
 DISCONTINUED OPERATIONS
 Condensed Statements of Operations
 (Dollars in thousands)
 Year ended Dec. 31: 1991 1990 1989
 Interest income $ 51,446 $194,340 $246,284
 Interest expense 33,057 135,682 182,699
 Net interest income 18,389 58,658 63,585
 Provision for possible
 loan losses -- 8,648 25,191
 Net interest income
 after provision for
 possible loan losses 18,389 50,010 38,394
 Non-interest income 5,745 24,515 74,446
 Non-interest expense 28,120 83,300 125,146
 Loss from operations $ (3,986) $ (8,775) $(12,306)
 Condensed Balance Sheets
 (Dollars in thousands)
 Dec. 31: 1991 1990
 Assets:
 Cash and due from banks $ 3,593 $ 141,726
 Investment securities 19,954 200,402
 Federal funds sold and
 securities purchased
 under repurchase
 agreements 5,500 86,350
 Loans net of allowance for
 possible loan
 losses of $.5 million and
 $44 million, respectively 33,678 717,337
 Other assets 6,416 107,751
 Total assets $ 69,141 $1,253,566
 Liabilities and
 stockholder's equity:
 Liabilities:
 Deposits $ 65,515 $1,161,188
 Short-term debt -- 38,126
 Long-term debt -- 3,057
 Other liabilities 458 9,838
 Total liabilities 65,973 1,212,209
 Stockholder's equity 3,168 41,357
 Total liabilities and
 stockholder's equity $ 69,141 $1,253,566
 Consolidated Quarterly Financial Data
 (Unaudited, dollars in thousands, except per share amounts)
 1991
 1st 2nd 3rd 4th
 Quarter Quarter Quarter Quarter
 Condensed Summary
 of Operations
 Interest income $ 6,947 $ 6,973 $ 6,873 $ 6,073
 Other income 151 135 146 --
 Total 7,098 7,108 7,019 6,073
 Interest expense -- -- 219 205
 Net realized losses,
 writedowns and
 expenses of
 investments and
 other assets
 held for sale (1) 10,460 (1) (1,723)
 Other expense 4,204 6,144 5,879 47,674
 Total 4,203 16,604 6,097 46,156
 Income (loss) from
 continuing
 operations before
 income taxes 2,895 (9,496) 922 (40,083)
 Provision for
 income taxes -- -- -- --
 Income (loss) from
 continuing
 operations 2,895 (9,496) 922 (40,083)
 Discontinued
 operations:
 Income (loss)
 from
 operations -- -- -- --
 Write-off of
 investment in
 bank subsidiaries -- -- -- --
 Gain (loss) on
 disposal of
 subsidiaries,
 net of tax -- 4,710 (464) (499)
 Net income (loss) $ 2,895 $ (4,786) $ 458 $(40,582)
 Average number of
 shares outstanding
 (in thousands) 42,572 42,572 42,572 42,572
 Per common share(A):
 Income (loss) from
 continuing
 operations $ 0.07 $ (0.22) $ 0.02 $ (0.94)
 Net income (loss) 0.07 (0.11) 0.01 (0.95)
 Condensed End of
 Period-Balance
 Sheet Data:
 Total assets $431,924 $427,826 $430,496 $406,296
 Short-term debt -- -- -- --
 Long-term debt 467,460 481,030 481,030 481,030
 Stockholders'
 deficit (130,587) (135,373) (134,915) (175,497)
 1990
 1st 2nd 3rd 4th
 Quarter Quarter Quarter Quarter
 Condensed Summary
 of Operations
 Interest income $ 5,761 $ 6,850 $ 7,474 $ 7,509
 Other income 194 2,001 243 (92)
 Total 5,955 8,851 7,717 7,417
 Interest expense 60 81 79 (220)
 Net realized losses,
 writedowns and
 expenses of
 investments and
 other assets
 held for sale (1) (18) 858 10,153
 Other expense 4,945 4,886 4,990 2,945
 Total 5,004 4,949 5,927 12,878
 Income (loss) from
 continuing
 operations before
 income taxes 951 3,902 1,790 (5,461)
 Provision for
 income taxes -- 540 325 (865)
 Income (loss) from
 continuing
 operations 951 3,362 1,465 (4,596)
 Discontinued
 operations:
 Income (loss)
 from
 operations 512 (3,550) (955) (4,782)
 Write-off of
 investment
 in bank
 subsidiaries -- -- -- (41,420)
 Gain (loss) on
 disposal of
 subsidiaries,
 net of tax -- -- -- 63,943
 Net income (loss) $ 1,463 $ (188) $ 510 $ 13,145
 Average number of
 share outstanding
 (in thousands) 42,572 42,572 42,572 42,572
 Per common share (A):
 Income (loss) from
 continuing
 operations $ 0.02 $ 0.08 $ 0.03 $ (0.10)
 Net income (loss) 0.03 (0.01) 0.01 0.32
 Condensed End of
 Period-Balance
 Sheet Data:
 Total assets $487,103 $487,489 $492,239 $424,775
 Short-term debt -- -- -- --
 Long-term debt 467,540 467,619 467,699 467,460
 Stockholders'
 deficit (146,949) (147,137) (146,627) (133,482)
 (A) -- Under the proposed joint Chapter 11 Plan of Reorganization, common stockholders may not receive a distribution from the bankruptcy estate of MCorp.
 -0- 3/30/92
 /CONTACT: Michael D. Magill of MCorp, 214-939-5884/ CO: MCorp ST: Texas IN: FIN SU: ERN


TS -- NY015 -- 2716 03/30/92 08:56 EST
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Date:Mar 30, 1992
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