McM CORPORATION REPORTS THIRD QUARTER RESULTS
McM CORPORATION REPORTS THIRD QUARTER RESULTS RALEIGH, N.C., Nov. 14 /PRNewswire/ -- McM Corporation reports
consolidated net income for the three months ended September 30, 1991, of $661,000 or $.14 per share compared to a net loss of $663,000 or $.14 per share for the third quarter of 1990. Income from continuing operations for the third quarter of 1991 was $780,000 or $.17 per share compared to income of $1,578,000 or $.34 per share for the third quarter of 1990. Gross revenues from continuing operations for the third quarter of 1991 were $16,640,000 compared to $16,410,000 for the same period in 1990. Included in these revenues are realized investment gains of $25,000 for 1991 compared to $14,000 for 1990. Continuing operations comprises primarily the operating results of the property and casualty subsidiaries, Occidental Fire & Casualty Company and Wilshire Insurance Company.
Results for the nine months ended September 30, 1991 show a loss from continuing operations of $105,000 or $.02 per share compared to income of $1,108,000 or $.24 per share for the same period in 1990. The net loss for the nine months of 1991 including the results of the discontinued operations and loss on disposal of the life and health insurance segment totalled $11,687,000 or $2.50 per share. This compares to a loss of $2,549,000 or $.54 per share for the nine months of the prior year. The sale of Occidental Life Insurance Company and Peninsular Life Insurance Company was completed on October 24, 1991. The financial statements of prior periods have been reclassified to separately disclose the effects of the sale and discontinuance of the life and health insurance segment. Unaudited results from operations of the discontinued life and health segment for 1991 show a loss of $5,064,000 or $1.08 per share which represents life and health segment operating results through May 31, 1991, the measurement date. Included in these results for 1991 are the effects of a $3,238,000 write down of investments due to other than temporary market declines. The loss reported on the disposal of the life and health insurance segment was $6,518,000 or $1.39 per share for the nine months ended September 30, 1991. Included in the reported loss is a $1,918,000 write off of deferred tax benefits which will no longer be available for recovery. Overall loss ratios on property and casualty operations during 1991 are greater than the prior year, primarily as a result of loss development on prior years' claims and increased claims severity. The results of continuing operations also include certain expenses of the parent company which will be nonrecurring subsequent to the completion of the sale of the life and health division. Other operating costs of continuing operations were down dramatically in 1991 as 1990 included additional provisions for bad debts from liquidated reinsurers of approximately $5.3 million. The previously announced definitive agreement for the sale of Atlantic Southern Insurance Company, a subsidiary of Occidental Fire & Casualty Company of North Carolina, continues in effect. However, Occidental Fire is conducting discussions with other potential buyers and is actively soliciting "back up" offers for the sale of Atlantic Southern in the event that the current prospective purchaser, Colonial Life Insurance Company (Trinidad) Limited, does not complete the transaction. Colonial Life has made substantial deposits to Occidental Fire which are nonrefundable if the sale of Atlantic Southern is not completed. On July 3, 1991, McM announced the execution of a definitive agreement for the sale of 913,450 shares of British-American Insurance Company, Limited, representing all of the interest in British-American held by Equity Holdings. The transaction remains subject to various regulatory and shareholder approvals. McM Corporation Financial Highlights Sept. 30, Dec. 31, Percent 1991 1990 Change (Thousands of dollars) Assets $175,234 $179,134 - 2.2 Shareholders' Equity $25,565 $37,247 - 31.4 Report for the Nine Months and Third Quarter Ended Sept. 30, 1991 9 Months Ended 3 Months Ended (Thousands of dollars, Sept. 30, Sept. 30, except per share data) 1991 1990 1991 1990 (Unaudited) (Unaudited) Property and casualty insurance premiums $37,992 $40,831 $14,160 $13,681 Gross investment income 6,162 7,463 1,992 2,555 Realized investment gains 108 41 25 14 Other income 636 374 463 160 TOTAL REVENUES 44,898 48,709 16,640 16,410 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EXTRAORDINARY ITEM (105) 1,678 752 2,134 Income taxes (benefits) 0 570 (28) 556 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE EXTRAORDINARY ITEM (105) 1,108 780 1,578 DISCONTINUED OPERATIONS Loss from operations of discontinued life and health insurance segment (5,064) (3,657) 0 (2,241) Loss on disposal of life and health insurance segment (6,518) 0 (91) 0 INCOME (LOSS) BEFORE EXTRAORDINARY ITEM (11,687) (2,549) 689 (663) EXTRAORDINARY TAX BENEFIT (PROVISION) FROM RECOGNITION OF OPERATING LOSS CARRYFORWARD 0 0 (28) 0 NET INCOME (LOSS) ($11,687) ($2,549) $661 ($663) PER SHARE DATA: Income (Loss) from continuing operations before extraordinary item ($0.02) $0.24 $0.17 $0.34 Loss from discontinued operations (2.48) (0.78) (0.02) (0.48) Extraordinary tax benefit (provision) 0.00 0.00 (0.01) 0.00 Income (loss) per share ($2.50) ($0.54) $0.14 ($0.14) Cash dividends Per Share Declared by McM $0.00 $0.00 $0.00 $0.00 -0- 11/14/91 /CONTACT: Stephen L. Stephano, Executive Vice President, Chief Financial Officer, Treasurer, McM Corporation, 919-833-1600/ CO: McM Corporation ST: North Carolina IN: INS SU: ERN DF -- CH014 -- 4584 11/14/91 16:32 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Nov 14, 1991|
|Previous Article:||NORTHWEST POWER PLANNING COUNCIL: SALMON LISTING EMPHASIZES NEED FOR REGIONAL RECOVERY PLAN|
|Next Article:||THE E.W. SCRIPPS COMPANY RELEASED OCTOBER STATISTICAL SUMMARY|