Printer Friendly

PHLCORP ANNOUNCES NINE MONTHS 1991 RESULTS

            PHLCORP ANNOUNCES NINE MONTHS 1991 RESULTS
    NEW YORK, Nov. 6 /PRNewswire/ -- PHLCorp, Inc. (NYSE: PHX) today


announced its unaudited operating results for the nine-month period ended Sept. 30, 1991. A summary of results for the nine and three months periods ended Sept. 30, 1991 and 1990 is as follows:
                             PHLCORP, Inc.
    Periods ended          Three months                Nine months
     Sept. 30;           1991        1990           1991         1990
    Revenues         $90,906,000 $91,577,000   $276,912,000 $262,017,000
    Net income         8,359,000  12,511,000     22,622,000   26,676,000
    Net income per
     common share            .61         .92           1.67         1.97
    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 charges 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 ($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 will ultimately 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 operations was approximately $10,300,000 and $4,200,000 for the nine month periods ended Sept. 30, 1991 and 1990, respectively, and $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 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.
    Included in results of operations are pension plan curtailment and settlement gains aggregating $1,700,000 and $2,900,000 for the periods ended in 1991 and 1990, respectively.
    Net income includes a provision for income taxes (principally state taxes, the federal alternative minimum income tax and, in 1991, a charge of $3,500,000 equivalent to the benefit from utilization of pre-reorganization tax loss carryforwards) of $9,033,000 and $3,205,000 for the nine month periods ended Sept. 30, 1991 and 1990, respectively, and $6,537,000 or $1,850,000 for the three month periods ended Sept. 30, 1991 and 1990, respectively.
    As previously announced, the company believes that it may obtain control of certain assets presently under the control of the Wisconsin Insurance Commissioner.  Such assets will be returned to the company without consideration and will be recorded as a direct increase in shareholders' equity.  The company believes certain of such assets will be returned to the company in 1991 or 1992 and the value of all such assets to be received by the company is approximately $39,000,000 at Sept. 30, 1991.
    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 liability determined under the provisions of SFAS 106 is approximately $14,600,000 at Dec. 31, 1990.  The company has not determined when it will implement SFAS 106 and is examining ways to minimize the liability.
    Through its operating subsidiaries, PHLCorp is engaged primarily in the trading stamps, motivation services and property and casualty insurance businesses.
    -0-        11/6/91
    /CONTACT:  Ruth Klindtworth of PHLCorp, 212-598-3200/
    (PHX) CO:  PHLCorp, Inc. ST:  Pennsylvania IN:  FIN SU:  ERN JT-KW -- NY090 -- 1941 11/06/91 17:34 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 6, 1991
Words:827
Previous Article:BALTIMORE BANCORP NAMES ALAN M. LEBERKNIGHT PRESIDENT AND CHIEF OPERATING OFFICER
Next Article:MEDIMMUNE ANNOUNCES THIRD QUARTER RESULTS


Related Articles
WESTERN GAS RESOURCES ANNOUNCES THIRD QUARTER RESULTS
HEALTHINFUSION ANNOUNCES RECORD THIRD QUARTER EARNINGS
ROCKING HORSE CHILD CARE CENTERS OF AMERICA REPORTS RESULTS
GOLDFIELD ANNOUNCES AGREEMENT TO SELL GOLD ROYALTY INTEREST FOR $7 MILLION AND THIRD QUARTER EARNINGS FOR 1991
PENN TREATY AMERICAN CORPORATION REPORTS IMPROVED THIRD QUARTER EARNINGS
PENN TREATY AMERICAN CORPORATION REPORTS IMPROVED THIRD QUARTER EARNINGS
LEUCADIA NATIONAL ANNOUNCES NINE MONTHS 1991 RESULTS
LEUCADIA SELLS POSITION IN MOLINS FOR GAIN OF 19,000,000
DUFF & PHELPS: LEUCADIA NATIONAL $125 MILLION SENIOR SUBORDINATED NOTES DUE 2002 RATING UPGRADED TO 'BBB-'
LEUCADIA NATIONAL CORPORATION $100 MILLION SENIOR NOTES ISSUE DUE 2008 RATED 'BBB-' SENIOR SUBORDINATED NOTES RATING REAFFIRMED AT 'BBB-' CONVIRTIBLE...

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters