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PHH ANNOUNCES RECORD FOURTH QUARTER EARNINGS; FULL YEAR NET INCOME UP 13 PERCENT; FOURTH QUARTER UP 11 PERCENT

 HUNT VALLEY, Md., May 24 /PRNewswire/ -- PHH Corporation (NYSE: PHH) today reported increased earnings per share and net income for the year ended April 30, 1993. Earnings per share were $3.25 compared with $2.92 for the prior year. Net income was $56.4 million vs. $50.0 million, a 13 percent increase. Worldwide revenues were $2.0 billion compared with $1.9 billion in the prior year. Revenues are impacted by increasing or decreasing interest rates which are, by contract, a pass-through cost to clients. Despite significantly lower interest rates, revenues increased by 5 percent.
 In the fourth quarter of fiscal 1993, earnings per share were a record 95 cents compared with 86 cents for the prior year. Net income was $16.6 million vs. $14.9 million in the prior year, an 11 percent increase. Revenues for the fourth quarter were $515.1 million.
 Noting the company's performance for the year, Chairman and Chief Executive Officer Robert D. Kunisch said: "PHH accomplished its primary goal of providing meaningful earnings growth for our shareholders despite an economy which kept uncertainty high for many of our clients. Our strategic focus on core business competencies and cost containment in fiscal 1993 paid off in significant profit growth. We also benefited from the favorable mortgage market and the exceptional performance of PHH US Mortgage Corporation."
 Discussing the company's mortgage banking operations, Kunisch stated: "This operation had another banner year. During the year, over 50,000 loans were processed, representing a 52 percent increase over last year's record volume. The servicing portfolio currently exceeds $11 billion and is characterized by mortgages of the highest quality. With the bulk of the servicing at historical low interest rates, it will provide an excellent long-term revenue stream for PHH." He added, "We see great continued potential for this business segment because of its well-defined market niche and our broad-based marketing strategies."
 Reporting on the company's relocation and real estate services segment, Kunisch pointed out: "In the U.S., authorizations to purchase client homes increased over prior year's levels, reflecting the impact of successfully integrating two domestic acquisitions. Our acquisition this month of Canada's largest relocation company should also provide significant additional opportunities for growth when it is integrated into PHH. Throughout the year, this segment also benefited from improvements in fee-based product performance, but was hampered by the continued soft economy in the U.K."
 Commenting on the vehicle management services segment, Kunisch said: "Although our clients' purchases worldwide were slightly below last year's levels, they exceeded 115,000 vehicles for the sixth consecutive year. Our global fleet of vehicles under management exceeds 450,000 units." He continued: "Our product development efforts have paid off with volume increases from fee-based vehicle-related services for both existing and new markets. Fuel and cost control management programs continue to play an important role in our product mix. This business segment also benefited from effective cost containment measures in our U.S. operations."
 Kunisch added: "In the U.K. vehicle services marketplace, PHH continues to maintain its leadership position. In Continental Europe, we are positioning our operations to increase contributions to stated growth objectives. Our efforts are directed at ensuring a well aligned overall strategy, signing new clients and expanding our supplier networks."
 Looking ahead, Kunisch said: "We remain focused on our core businesses and on delivering cost-effective quality services. Our confidence remains high in our ability to provide consistent earnings growth in the 10 to 15 percent range. For the near term, we are positioned for a slow to modest economic growth scenario. Anything beyond that will benefit PHH and our clients." He stated, "In the coming fiscal year we will also be working to strengthen our alliances with performance-based supplier groups, and making further planned investments in technology to bring our clients closer to the information they need to more effectively manage their businesses." Kunisch concluded: "Corporations are continually looking at ways to cut costs and become more productive. In such a climate, the outsourcing services that PHH offers bring real value because they allow our clients to concentrate their resources on growing their business."
 Founded in 1946 as a professional fleet management company, PHH today is a $4 billion transnational business services corporation listed on the New York Stock Exchange. PHH Corporation and its operating units provide a broad range of integrated business services to more than 3,000 corporations and organizations in North America, the United Kingdom and Western Europe.
 PHH CORPORATION AND SUBSIDIARIES
 Consolidated Statements of Income
 (Thousands of dollars except per share data)
 Three Months Year
 Ended April 30, Ended April 30,
 1993 1992 1993 1992
 (Unaudited)
 Revenues:
 Vehicle management
 services $281,495 $256,229 $1,069,484 $992,514
 Relocation and real
 estate services 205,573 210,063 829,336 849,871
 Mortgage banking
 services 28,022 27,589 122,111 89,099
 Total 515,090 493,881 2,020,931 1,931,484
 Operating Expenses:
 Direct costs of
 operating leases 189,390 158,579 707,542 600,109
 Costs, including
 interest, of carrying
 and reselling homes 180,739 186,576 734,640 757,534
 Direct costs of mortgage
 banking services 11,725 10,072 47,288 30,738
 Interest 32,992 40,273 150,894 185,750
 Selling, general and
 administrative 71,972 73,493 284,238 271,972
 Total 486,818 468,993 1,924,602 1,846,103
 Operating income 28,272 24,888 96,329 85,381
 Other expense, net (530) (572) (2,091) (2,264)
 Income before income taxes 27,742 24,316 94,238 83,117
 Income taxes 11,119 9,406 37,821 33,138
 Net income $ 16,623 $ 14,910 $ 56,417 $ 49,979
 Net income per share $0.95 $0.86 $3.25 $2.92
 Number of shares used
 in calculation of net
 income per share (in
 thousands) 17,357 17,100
 -0- 5/24/93
 /CONTACT: Gene Truett (analysts), 410-771-2463, or Peter Brinch, (press), 410-771-2519, both of PHH Corporation./
 (PHH)


CO: PHH Corporation ST: Maryland IN: FIN SU: ERN

TW -- DC005 -- 1606 05/24/93 10:28 EDT
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Date:May 24, 1993
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