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 NORRISTOWN, Pa., Nov. 9 /PRNewswire/ -- Provident American Corporation (NASDAQ: PAMC), an insurance holding company, announced today that for the third quarter ended Sept. 30, 1993, it had net income of operations of $1,007,000, or $.10 per share, before preferred dividend requirements, on $11,921,000 of net revenue compared to a gain of $850,000, or $.09 per share, on net revenue of $11,632,000 for the same period of the prior year.
 For the nine months ended Sept. 30, 1993, Provident had net income of $1,155,000, or $.12 per share, before preferred dividend requirements, on $34,355,000 of net revenue compared with a loss of $217,000, or $.02 per share on net revenue of $33,783,000 a year ago.
 Results for the third quarter and year-to-date 1993 have continued the positive trend from 1992 due to the vigorous management of the insurance operations, controlled loss ratios and strong investment performance. Funeral insurance revenue growth has been restricted as product refinements were made to achieve appropriate profitability. Funeral insurance revenues are projected to grow substantially as greater penetration of this rapidly growing market occurs.
 Al Clemens, chairman and CEO of Provident, said, "I am especially pleased with these results given the significant investment we have made, and continue to make, in our market. Funeral insurance development costs, substantially all of which have been charged to operations, have exceeded $6 million from the inception of our efforts in 1989. Currently, the company defers no acquisition costs and therefore there are virtually no deferred assets."
 Clemens added, "Stockholders' equity is projected to increase to $10 million or $1.20 per share by December 31, 1993. This represents a significant increase over the $2.3 million or $.40 per share of stockholders' equity at December 31, 1989. Provident is exceptionally strong financially, is profitable without deferring acquisition costs and has substantially increased shareholder equity. We are committed to building shareholder value through leadership position in the funeral insurance and seniors market."
 Provident American Corporation is an insurance holding company selling specialized niche products, concentrating on prefunded funeral planning and insurance policies for seniors.
 Condensed Consolidated Statements of Operations
 (000s Omitted)
 Periods ended Three months Nine months
 Sept. 30 1993 1992 1993 1992
 Accident and health
 premiums, gross $14,177 $14,786 $41,846 $44,872
 Life insurance premiums 2,346 2,895 8,961 10,000
 Other revenue 2,010 1,908 3,967 3,470
 Total gross revenue 18,533 19,589 54,774 58,342
 Less accident & health
 reinsurance (6,612) (7,957) (20,419) (24,559)
 Total net revenue 11,921 11,632 34,355 33,783
 Expenses 10,871 10,717 33,093 33,869
 Income (loss) before taxes 1,050 915 1,262 (86)
 Tax expense 43 64 107 131
 Net income (loss) 1,007 851 1,155 (217)
 Dividend on preferred stock 64 --- 128 ---
 Net income (loss) applicable
 to common stock 943 851 1,027 (217)
 Income (loss) per share
 before dividends $.10 $.09 $.12 $(.02)
 Income (loss) per share
 applicable to common stock .10 .09 .11 (.02)
 -0- 11/9/93
 /CONTACT: Anthony R. Verdi, CFO of Provident American, 215-279-2500, or Melissa Wilmoth of Cameron Associates, 212-644-9560, for Provident American/

CO: Provident American Corporation ST: Pennsylvania IN: INS SU: ERN

MK-LJ -- PH017 -- 3633 11/09/93 11:25 EST
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Publication:PR Newswire
Date:Nov 9, 1993

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