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PRIMERICA'S THIRD QUARTER EPS TOTAL $1.46: $1.20 FROM OPERATIONS PLUS REALIZED CAPITAL GAINS OF $0.26

 PRIMERICA'S THIRD QUARTER EPS TOTAL $1.46:
 $1.20 FROM OPERATIONS PLUS REALIZED CAPITAL GAINS OF $0.26
 NEW YORK, Oct. 13 /PRNewswire/ -- Primerica Corporation (NYSE: PA) announced today that earnings per share for the quarter ended Sept. 30, 1992, reached $1.46, including $1.20 from operations and $0.26 from realized capital gains. Net income was $165.0 million, including $136.7 million from operations and investment portfolio gains of $28.3 million. These figures compare with $1.11 and $123.5 million, respectively, in the 1991 quarter, in which portfolio gains were not material. Revenues for the 1992 period were $1.2 billion versus $1.3 billion last year.
 Sanford I. Weill, Primerica's chairman and chief executive officer, said: "We are pleased to report higher earnings this quarter, despite the persistent sluggishness of the economy. We continue to benefit from our solid base of recurring income streams, control of expenses and lower funding costs, although earnings available to common stock were affected slightly by the $4.2 million dividend on our newly issued preferred stock, by Hurricane Andrew and by disappointing results from Fingerhut.
 "Additionally, we have taken gains of $28.3 million ($42.8 million pretax) in our investment portfolios during the quarter, while remaining unrealized gains still exceed $160 million pretax, higher than the level experienced at the end of the second quarter. This restructuring, which included reducing our exposure to early paydowns of mortgage-backed securities, will help maximize the portfolio's long-term total return. In order to maintain a more flexible investment strategy, effective Sept. 30, 1992, we are revising our accounting policy for fixed maturity investments to establish a category of 'investments held for sale,' which will be valued at the lower of cost or market. These investments will include those securities that may be sold in response to such events as changes in interest rates or yield curves. This revision will have no current effect on earnings or shareholders' equity."
 Mr. Weill added, "Our core businesses continued to perform well, particularly given the environment. Consumer Finance reported higher earnings despite still recording slow receivables growth, and the trend continues toward better delinquency experience. Sales at Primerica Financial Services remained stable at above the $11 billion level, while mutual fund activity continued to improve. Smith Barney's earnings were lower than last year's quarter, reflecting slightly higher expenses in part associated with new initiatives that we believe will be favorable over the long term, as well as lower trading results. Securities markets are clearly less vigorous than they were in the first half of this year.
 "At the same time, another event in the quarter should have a significant long range impact. In September, Primerica agreed to form a strategic alliance, subject to approvals, with The Travelers Corporation, by providing $722.5 million in new capital to Travelers in exchange for 27 percent of its common equity. This transaction will add to Primerica's earnings, while maintaining our 'A' ratings, and gives us a major investment in a changing industry in which we believe the long- term opportunities far exceed the near-term challenges."
 Consumer Finance Services
 Earnings from Consumer Finance, before capital gains, increased 9 percent to $50.0 million, up from $45.9 million in the 1991 quarter, primarily as a result of continued expense control and a lower loan loss provision because of slow growth in new loans. Receivables outstanding stood at $5.779 billion at Sept. 30, 1992, about flat with third quarter 1991 levels and up slightly from June 30, 1992, levels. The segment realized gains of $4.3 million during the quarter from its investment portfolio, bringing total earnings to $54.3 million.
 Despite the continued economic slump, which has resulted in lower consumer borrowings, credit quality continued its positive trend for the third consecutive quarter. Both 60-day plus delinquencies and charge- offs declined from second quarter 1992 levels to 2.51 percent from 2.55 percent and to 2.82 percent from 2.86 percent, respectively. Reserves as a percentage of receivables were 2.91 percent versus 2.81 percent in the prior year quarter.
 Insurance Services
 Earnings from Primerica Financial Services, before capital gains, were $45.2 million, including $1.4 million from National Benefit Life, compared to $46.1 million, including $2.0 million from National Benefit, in last year's quarter. Net gains of $9.9 million were realized in the company's investment portfolio, bringing total earnings to $55.1 million.
 Sales of new life insurance were $11.1 billion in the period, about level with sales in each of the previous four quarters. Total face amount of life insurance in force was $303.5 billion at Sept. 30, 1992, down slightly from $305.7 billion at June 30, 1992. Sales of mutual funds continued to exceed prior year quarterly levels, reaching $237.3 million at net asset value at third quarter-end 1992, a 31 percent increase from the 1991 third quarter total of $180.6 million. Outstandings of S.M.A.R.T. and S.A.F.E. loans, marketed by PFS agents and reflected in Consumer Finance Services assets, were $469.0 million, compared with $371.2 million a year ago and $445.8 million at June 30, 1992. Assets under management in PFS's proprietary Common Sense Trust family of mutual funds reached $2.6 billion at the end of the quarter, up from $2.1 billion at the end of the comparable 1991 period.
 Specialty Life and Health operations earned $9.7 million, before capital gains, up from $8.3 million in last year's third quarter, mainly as a result of the elimination during 1991 of certain unprofitable lines of business. The segment realized gains of $8.1 million in its investment portfolio during the period, resulting in a total earnings contribution of $17.8 million.
 Gulf Insurance's property and casualty operations earned $6.0 million in the quarter, before capital gains, up slightly from $5.0 million reported in the 1991 period, and reflected a $2 million provision for losses from Hurricane Andrew. The unit realized investment gains of $6.0 million, for total earnings of $12.0 million for the quarter. The increase in operating earnings was largely attributable to higher writings of the more profitable specialty lines and a continued planned decrease in writings of less profitable lines in the regional businesses.
 Investment Services
 Smith Barney posted earnings of $33.4 million, down slightly from last year's $35.9 million (both periods before purchase accounting adjustments of $3.3 million). Revenue increases were recorded in gross production (up 9 percent), investment banking (up 16 percent) and asset management fees (up 21 percent), offset by lower trading results (down 12 percent) and net interest income (down 6 percent) and slightly higher expenses. The latter were in part related to several new initiatives, including retail branch office openings, establishment of a Hong Kong office and expansion of the futures business in London.
 The Mutual Fund and Asset Management segment contributed $7.3 million to earnings, up from last year's third quarter contribution of $6.7 million (excluding results from Margaretten, which was sold to the public at the beginning of this year). These results reflect improved performance by American Capital Management, the mutual fund subsidiary, and higher earnings from RCM Capital Management, as assets under management by these two divisions increased slightly to $37.0 billion.
 Corporate and Other
 Net expenses from the Corporate and Other segment for the quarter were down to $11.6 million from $26.5 million in the 1991 third quarter. Primerica's expense decline primarily reflects lower interest rates as well as lower debt levels versus the prior year period. These figures include contributions of $2.4 million and $4.5 million, respectively, from Fingerhut's earnings. Fingerhut's contribution declined in part as a result of a slower than expected startup of its Tennessee distribution facility.
 Primerica Corporation is a diversified financial services company principally engaged in investment banking and securities brokerage, mutual funds and asset management, consumer lending, and life, credit, accident & health, and property & casualty insurance. As of Sept. 30, 1992, Primerica had assets of approximately $23 billion and book value of approximately $33.90 per common share.
 PRIMERICA CORPORATION
 Summary of Earnings
 (In millions of dollars and shares, except per share amounts)
 Periods ended Three Months Nine Months
 Sept. 30 1992 1991 1992 1991
 Operating revenues (A) $1,245.6 $1,281.2 $3,826.8 $3,825.4
 Income from operations
 before income taxes
 and minority interests 251.4 199.7 727.7 523.6
 Provision for income
 taxes on operations (86.4) (72.2) (258.3) (191.6)
 Income from operations
 before minority interests 165.0 127.5 469.4 332.0
 Minority interests,
 net of income taxes -- (4.0) -- (10.9)
 Income from operations (B,D) 165.0 123.5 469.4 321.1
 Gains on sales of stock of
 subsidiaries and affiliates,
 net of income taxes -- -- 66.9 25.6
 Net income 165.0 123.5 536.3 346.7
 Preferred dividends (4.2) -- (4.2) --
 Income applicable to
 common stock $ 160.8 $ 123.5 $ 532.1 $ 346.7
 Earnings per share (C,D) $ 1.46 $ 1.11 $ 4.79 $ 3.11
 Total average common
 and equivalent shares 110.3 112.3 111.1 112.2
 (A) -- Operating revenues in 1992 and 1991 exclude the effect of gains on sales of stock of subsidiaries and affiliates. Operating revenues in 1991 exclude Fingerhut's revenues of $308.7 million and $929.7 million for the three months and nine months ended Sept. 30, 1991.
 (B) -- Included in income from operations in the nine months ended Sept. 30, 1991, are after-tax charges of $10.0 million related to restructuring of the Specialty Life and Health operations and $15.6 million related to real estate lease commitments.
 (C) -- Earnings per share includes $.60 in the nine months ended Sept. 30, 1992, and $.23 in the nine months ended Sept. 30, 1991, relating to gains on sales of stock of subsidiaries and affiliates.
 (D) -- Income from operations includes after-tax net portfolio gains for the three months ended Sept. 30, 1992, of $28.3 million ($.26 per share).
 -0- 10/13/92
 /CONTACT: Mary McDermott or Avery Hunt, 212-891-8870, or Barbara Yastine, 212-891-8872, all for Primerica/
 (PA) CO: Primerica Corporation ST: New York IN: FIN SU: ERN


GK -- NY011 -- 9156 10/13/92 09:16 EDT
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Date:Oct 13, 1992
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