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PHH REPORTS NET INCOME INCREASE OF 8 PERCENT FOR THIRD QUARTER; YEAR- TO-DATE NET INCOME UP 13 PERCENT; 134TH CONSECUTIVE DIVIDEND DECLARED

 HUNT VALLEY, Md., Feb. 22 /PRNewswire/ -- PHH Corporation (NYSE: PHH) today reported an increase of 8 percent in net income for its third quarter ended Jan. 31, 1993. Net income was $14.4 million compared with $13.3 million in the prior year period. Earnings per share were 83 cents, an increase of 6 percent compared with 78 cents in the previous third quarter. Revenues for the quarter were $487 million compared with $477 million in fiscal 1992.
 Year-to-date, net income was up 13 percent, from $35.1 million to $39.8 million. Earnings per share were $2.30 vs. $2.06 in the prior year, an increase of 12 percent. Revenues for the first nine months were $1.50 billion compared with $1.44 billion in fiscal 1992.
 Chairman and Chief Executive Officer Robert D. Kunisch said, "The excellent performance of our mortgage banking services segment continues. The overall corporate results announced today support the positive momentum we have gained over the past several quarters, despite ongoing economic uncertainties."
 In discussing the corporation's mortgage banking operations, Kunisch noted that during the quarter the servicing portfolio surpassed $10 billion and loan closings increased 73 percent from the third quarter a year ago. "The growth of our portfolio continues to exceed our expectations and provides us with an excellent long-term revenue stream. In the coming months, as the industry sees loan originations decline somewhat as refinancing activity abates, we expect our volume to remain strong as a result of our broad-based marketing strategies."
 Reporting on the performance of the corporation's relocation and real estate services segment, Kunisch pointed out, "Authorizations from our clients to purchase homes and the number of transferee homes sold were up six percent year-to-date. Results in Canada and the United Kingdom continued to be negatively affected by the poor real estate markets and general economic weakness."
 Commenting on the vehicle management business segment, Kunisch said, "We continue to feel the effects of a soft recovery, and the related uncertainties felt by many of our clients. Domestic vehicles under management were slightly below last year's level, though offset somewhat by an increase in the United Kingdom. Results of this business segment continue to benefit from our cost management efforts. Automotive fuel and maintenance service transactions in both North America and the United Kingdom continued to grow because our clients are coming to PHH for more effective systems and solutions to better manage their total fleet costs. In Europe, we remain focused on carefully positioning PHH vehicle services for future expansion on the continent."
 Kunisch observed: "Our overall performance during the past five quarters speaks well for the opportunities that await us as the economy improves. In these difficult times, PHH has performed well above the average of major corporations. We believe that our decision to narrow our focus on our core businesses is paying off in terms of cost management, continuous quality improvement initiatives and quicker identification of market opportunities."
 Looking ahead, Kunisch noted, "Given the economic and political uncertainties, we are gratified with our results to date and are confident that, going forward, we will continue to meet our stated growth objectives."
 The board of directors of PHH Corporation has declared a regular quarterly dividend of 30 cents per share on the company's common stock. The dividend is payable April 30, 1993, to shareholders of record April 8, 1993, and is the same as that paid in January 1993. This dividend represents the 134th consecutive quarterly dividend to be paid by this business services company.
 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 2,000 corporations and organizations in North America, the United Kingdom and Western Europe.
 PHH CORPORATION AND SUBSIDIARIES
 Consolidated Statements of Income (Unaudited)
 (Thousands of dollars except per share data)
 Three Months Nine Months
 Ended Jan. 31, Ended Jan. 31,
 1993 1992 1993 1992
 Revenues:
 Vehicle management
 services $262,978 $259,276 $787,989 $736,285
 Relocation and real
 estate services 194,925 194,497 623,763 639,808
 Mortgage banking
 services 29,115 23,457 86,989 61,510
 Total Revenues 487,018 477,230 1,498,741 1,437,603
 Operating Expenses:
 Direct costs of
 operating leases 176,587 158,056 518,152 441,530
 Costs, including
 interest, of carrying
 and reselling homes 175,030 172,875 553,901 570,958
 Direct costs of mortgage
 banking services 8,902 8,574 28,463 20,666
 Interest 35,452 45,934 117,902 145,477
 Selling, general and
 administrative 66,600 69,118 212,266 198,479
 Total Operating
 Expenses 462,571 454,557 1,430,684 1,377,110
 Operating income 24,447 22,673 68,057 60,493
 Other expense, net (537) (531) (1,561) (1,692)
 Income before
 income taxes 23,910 22,142 66,496 58,801
 Income taxes 9,512 8,815 26,702 23,732
 Net income $ 14,398 $ 13,327 $ 39,794 $ 35,069
 Net income per share $0.83 $0.78 $2.30 $2.06
 Number of shares used
 in calculation of net
 income per share (in
 thousands) 17,296 17,062
 -0- 2/22/93
 /CONTACT: Gene Truett (analysts), 410-771-2463, or Peter Brinch (media), 410-771-2519, both of PHH Corporation/
 (PHH)


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

DC -- DC010 -- 8929 02/22/93 11:36 EST
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Date:Feb 22, 1993
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