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SMC ANNOUNCES SECOND QUARTER EARNINGS AND REVENUES

 INDIANAPOLIS, July 30 /PRNewswire/ -- Standard Management Corporation ("SMC") (the "company") (NASDAQ: SMAN) reported continued growth in second quarter earnings and revenues, according to an announcement made today.
 Income before extraordinary charge and cumulative effect of an accounting change for income taxes was $867,760, or $.22 per share, for the quarter ended June 30, 1993, and net income was $194,407, or $.05 per share. Income before extraordinary charge was $185,179, or $.10 per share, for the quarter ended June 30, 1992, and net income was $74,736, or $.04 per share.
 Income before extraordinary charge and cumulative effect of an accounting change for income taxes was $1,666,473, or $.46 per share, for the six months ended June 30, 1993, and net income was $814,337, or $.22 per share. Income before extraordinary charge was $256,724, or $.14 per share, for the six months ended June 30, 1992, and net income was $146,281, or $.08 per share.
 The 1993 per share amounts reflect the issuance of 2.3 million shares from the company's initial public offering in February 1993.
 For the quarter ended June 30, 1993, revenue was $6.4 million, compared to $2.9 million for the second quarter of 1992, an increase of 119 percent. For the six months ended June 30, 1993, revenue was $13.5 million, compared to $5.7 million for the first half of 1992, an increase of 136 percent. These increases are due primarily to the additional premiums and investment income from the June 30, 1992 acquisitions of First International Life Insurance Company and a block of insurance from The Midwest Life Insurance Company, as well as additional net realized investment gains.
 Net realized investment gains were $1.3 million in the quarter ended June 30, 1993, compared to $2.3 million in the first quarter of 1993 and $.6 million in the second quarter of 1992. Net realized investment gains were $3.6 million for the six months ended June 30, 1993, compared to $1.0 million for the first half of 1992.
 Premiums received from the sales of flexible premium deferred annuities (which are not included in revenues) were $10.6 million for the quarter ended June 30, 1993, compared to $4.0 million for the second quarter of 1992. For the six months ended June 30, 1993, premiums from flexible premium deferred annuities were $17.7 million, compared to $7.5 million for the first half of 1992. These increases primarily result from increased sales of the Standard Bearer annuity issued by the company's wholly owned subsidiary, Standard Life Insurance Company of Indiana.
 Ronald D. Hunter, chairman of the board and CEO for SMC, stated, "We are pleased with the continued growth of earnings and revenues as exhibited in the second quarter. The company's strategic actions resulted in a pretax operating profit for the quarter with net realized investment gains excluded. In addition, during April 1993, the company repaid the remaining balance of $10 million of debt. The company's debt- free status increases its financial strength and provides additional financial flexibility. These actions will aid us in achieving continued long-term shareholder value," he said.
 SMC is an insurance-holding company which, through subsidiaries, acquires and manages in-force life insurance and annuity business and distributes life insurance and annuity products issued by the company and a select group of unaffiliated insurers.
 STANDARD MANAGEMENT CORPORATION
 (NASDAQ: SMAN)
 (Unaudited; dollars in thousands, except per share amounts)
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 Three Months Ended Six Months Ended
 June 30 June 30
 1993 1992 1993 1992
 Revenues $6,428 $2,940 $13,456 $5,697
 Income before extraordinary
 charge and cumulative
 effect of a change in
 accounting principle $ 867 $ 185 $ 1,666 $ 256
 Extraordinary charge - loss
 on early extinguishment
 of debt (A) (673) (110) (1,301) (110)
 Cumulative effect on prior
 years (to Dec. 31, 1992)
 of applying retroactively
 the new method of
 accounting for income
 taxes (B) --- --- 449 ---
 Net income $ 194 $ 75 $ 814 $ 146
 Per share data:
 Weighted average number
 of common and common
 equivalent shares
 outstanding (A) 4,021,218 1,866,118 3,654,206 1,866,117
 Income before
 extraordinary charge $ .22 $ .10 $ .46 $ .14
 Extraordinary charge -
 loss on early
 extinguishment of
 debt (A) (.17) (.06) (.36) (.06)
 Cumulative effect on
 prior years (to
 Dec. 31, 1992) of
 applying retroactively
 the new method of
 accounting for
 income taxes (B) --- --- .12 ---
 Net income $ .05 $ .04 $ .22 $ .08
 (A) -- In February 1993, the company recognized a $627,427 extraordinary charge from the repayment of $10.75 million of debt from a portion of the $25.3 million net proceeds of the company's initial public offering of 2.3 million shares of its common stock on Feb. 2, 1993. In April 1993, the company recognized a $673,353 extraordinary charge from the repayment of the remaining debt of $10 million.
 (B) -- Effective Jan. 1, 1993, the company adopted the provisions of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes." As permitted by Statement No. 109, prior year financial statements have not been restated to reflect the change in accounting method.
 -0- 7/30/93
 /CONTACT: Norman W. Wilkens of Standard Advertising, Incorporated, 317-574-5221, for Standard Management Corporation/
 (SMAN)


CO: Standard Management Corporation ST: Indiana IN: INS SU: ERN

BM -- CL005 -- 7645 07/30/93 09:57 EDT
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Publication:PR Newswire
Date:Jul 30, 1993
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