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PIEDMONT MANAGEMENT COMPANY REPORTS SEMI-ANNUAL OPERATING RESULTS

 PIEDMONT MANAGEMENT COMPANY REPORTS SEMI-ANNUAL OPERATING RESULTS
 NEW YORK, Aug. 6 /PRNewswire/ -- Piedmont Management Company Inc. (NASDAQ-NMS: PMAN) today reported 1992 semi-annual and second quarter results. For the six months, net income per share was $0.22. This compares with $0.18 per share for the six months of 1991. In the second quarter of 1992, the company reported a loss per share of $0.19 (after deducting $0.02 for preferred dividends) compared to earnings of $0.09 in the second quarter of 1992. Details follow:
 -- Consolidated net income increased to $1.2 million in comparison to $983,000 for the six months of 1991. In the second quarter, a net loss of $839,000 was reported compared to net income of $504,000 in the 1991 period.
 -- Excluding the after tax effects of net realized capital gains on sales of securities in each period, a $0.19 loss per share was recorded in the second quarter with earnings per share of $0.05 for the six months of 1992 compared to losses of $0.19 and $0.07 per share for the second quarter and six months of 1991, respectively.
 -- According to a company spokesman, very little has changed in terms of underwriting conditions and the rating environment for property/casualty reinsurance companies. Competition for business remains intense; primary companies are retaining more business and renewal quotations, especially in commercial lines, are inadequate in relation to underlying risks. The company has therefore continued its policy of declining business which it believes is underpriced and has instead concentrated on developing its non-standard auto reinsurance business as well as expanding its participation in specialty niche areas through the Reinsurance Corporation of New York's (RECO) direct policy issuing facilities.
 The depressed market conditions have been exacerbated by an onset of severe catastrophe losses, much of which stems from damages caused by storms and tornadoes occurring throughout the year in various regions of the country. During the second quarter of 1992, a significant portion of RECO's incurred losses were due to weather related occurrences. Also in the quarter, written and earned premiums were behind the level of the first quarter and as a result the combined ratio (GAAP accounting basis) increased to 118.8 percent from 113.4 percent at March 31.
 Net investment income was $4.9 million in the second quarter; $10.2 million for the six months of 1992. Net investment income is behind year earlier levels and can be attributed to lower portfolio yields precipitated by a declining interest rate environment.
 -- Investment advisory pre-tax income was $334,000 in the second quarter and $613,000 for the six months of 1992. While a modest improvement over the first quarter, these results trail the second quarter and semi-annual periods of 1991. Although some new business was added in 1992, revenue goals for the year are behind budget. Expenses are up over the prior year primarily as a result of the costs associated with the acquisition and development of new mutual funds and related products.
 -- Consolidated assets were $474.7 million and stockholders' equity was $115.5 million at June 30, 1992. Book value per share, including net unrealized appreciation of $1.1 million, was $21.72.
 Piedmont Management Company Inc. is a financial services company whose principal subsidiaries include The Reinsurance Corporation of New York (RECO), a property and casualty reinsurer, and Lexington Management Corporation, an investment advisory and mutual fund management company.
 PIEDMONT MANAGEMENT COMPANY INC.
 Second Quarter/Semi-Annual Results 1992
 (Unaudited)
 Three months ended June 30 1992 1991
 Reinsurance operations:
 Net premiums earned $24,970,246 $20,762,596
 Net investment income 4,903,640 5,901,188
 Total 29,873,886 26,663,784
 Realized capital gains 132,814 1,854,360
 Losses and loss adjustment expenses 22,058,683 19,206,336
 Acquisition and other expenses 9,397,072 9,148,932
 Total 31,455,755 28,355,268
 Reinsurance operating income (loss) (1,449,055) 162,876
 Investment advisory operations:
 Fees earned and other income 3,996,996 4,085,628
 Service and marketing costs 3,662,712 3,467,398
 Investment advisory operating income 334,284 618,230
 Parent company:
 Investment and other income 126,364 140,376
 Realized capital gains 4,724 4,948
 Interest expense 189,469 305,861
 Other corporate expenses 510,209 661,306
 Parent company operating loss (568,590) (821,843)
 Equity in net earnings of investees 591,549 449,988
 Income tax (expense) credit 253,290 94,588
 Net income (loss) $ (838,522) $ 503,839
 Average shares for period (A) 4,968,143 5,325,061
 Net income (loss) per share (A) $(.19) $.09
 Supplementary data per share:
 Income (loss) excluding realized
 capital gains $(.19) $(.19)
 Realized capital gains net of tax .02 .28
 Deduction for preferred dividends (.02) --
 Net income (loss) $(.19) $ .09
 Six months ended June 30 1992 1991
 Reinsurance operations:
 Net premiums earned $57,787,017 $43,809,420
 Net investment income 10,213,513 11,429,985
 Total 68,000,530 55,239,405
 Realized capital gains 1,157,829 1,653,015
 Losses and loss adjustment expenses 45,795,809 39,077,340
 Acquisition and other expenses 22,874,015 17,169,331
 Total 68,669,824 56,246,671
 Reinsurance operating income (loss) 488,535 645,749
 Investment advisory operations:
 Fees earned and other income 7,935,632 7,880,453
 Service and marketing costs 7,322,800 7,074,516
 Investment advisory operating income 612,832 805,937
 Parent company:
 Investment and other income 253,375 294,935
 Realized capital gains 4,724 4,948
 Interest expense 386,320 647,250
 Other corporate expenses 912,236 1,323,282
 Parent company operating loss (1,040,457) (1,670,649)
 Equity in net earnings of investees 1,270,814 1,042,479
 Income tax (expense) credit (126,393) 159,298
 Net income (loss) $ 1,205,331 $ 982,814
 Average shares for period (A) 5,360,537 5,325,061
 Net income (loss) per share (A) $.22 $.18
 Supplementary data per share:
 Income (loss) excluding realized
 capital gains $.05 $(.07)
 Realized capital gains net of tax .17 .25
 Deduction for preferred dividends -- --
 Net income (loss) $.22 $ .18
 (A) -- Computations of earnings (loss) per share for each quarter or period are independent. For the three months ended June 30, 1992, the inclusion of common stock equivalents would be anti-dilutive and accordingly weighted average shares were used in the computation of earnings (loss) per share.
 -0- 8/6/92
 /CONTACT: Peter Palenzona, chief financial officer of Piedmont Management Company, 212-363-4650/
 (PMAN) CO: Piedmont Management Company Inc. ST: New York IN: FIN SU: ERN


GK-KL -- NY076 -- 7661 08/06/92 14:30 EDT
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