Printer Friendly

SMC EARNINGS AND REVENUES INCREASE IN THIRD QUARTER

 INDIANAPOLIS, Nov. 1 /PRNewswire/ -- Standard Management Corporation ("SMC") (NASDAQ: SMAN) reported continued growth in third quarter earnings and revenues, according to an announcement made today.
 Net income for SMC and its subsidiaries ("company") was $812,675, or $.21 per share, for the quarter ended Sept. 30, 1993, as compared to a net loss for the quarter ended Sept. 30, 1992, of $(790,541), or $(.47) per share.
 Income before extraordinary charge and cumulative effect of an accounting change for income taxes was $2,479,148, or $.66 per share, for the nine months ended Sept. 30, 1993, and net income was $1,627,012, or $.43 per share. Loss before extraordinary charge was $(533,817), or $(.32) per share, for the nine months ended Sept. 30, 1992, and net loss was $(644,260), or $(.39) per share.
 For the quarter ended Sept. 30, 1993, revenue was $.68 million, compared to $.45 million for the third quarter of 1992, an increase of 52 percent. For the nine months ended Sept. 30, 1993, revenue was $20.3 million, compared to $10.2 million for the first nine months of 1992, an increase of 99 percent. These increases are due primarily to higher net realized investment gains, as well as the additional premiums, policy charges and investment income from 1992 acquisitions.
 Net realized investment gains were $2.1 million in the quarter ended Sept. 30, 1993, compared to $1.3 million in the second quarter of 1993 and realized losses of $.2 million in the third quarter of 1992. Net realized investment gains were $5.8 million for the nine months ended Sept. 30, 1993, compared to $.8 million for the first nine months of 1992.
 Premiums received from the sales of flexible premium deferred annuities and other investment products (which are not included in revenues) were $13.0 million for the quarter ended Sept. 30, 1993, compared to $6.8 million for the third quarter of 1992. For the nine months ended Sept. 30, 1993, such premiums were $32.1 million, compared to $14.3 million for the first nine months 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.
 The company has scheduled two auctions in late November 1993 to sell two buildings which make up the bulk of its investment real estate. The company anticipates it will not experience any realized losses from these sales as the $750,000 allowance for losses on investments at Sept. 30, 1993, is adequate to absorb any such losses.
 The company recorded federal income tax expense of $.01 per share in the 1993 third quarter as a result of revaluation of its net deferred tax liability to recognize the increase by Congress of the corporate federal tax rate from 34 percent to 35 percent in August 1993.
 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 third quarter. The company's book value increased from $8.20 per share as of June 30, 1993, to $8.36 per share at Sept. 30, 1993."
 Hunter emphasized the company is debt-free, which contributes greatly to its financial strength by providing additional financial flexibility. "Additionally, we continue to adhere to the fundamental principles under which the company was founded, namely, to achieve continued long-term shareholder value by instituting a pragmatic approach to growth. We look at the long term and determine what is best for our policyholders and shareholders today as well as in the future," 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
 (Unaudited; dollars in thousands, except per share amounts)
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 Three Months Ended Nine Months Ended
 September 30 September 30
 1993 1992 1993 1992
 Revenues $6,835 $4,486 $20,291 $10,183
 Income (loss) before
 extraordinary charge and
 cumulative effect of a
 change in accounting
 principle $813 $(790) $2,479 $(534)
 Extraordinary charge --
 loss on early
 extinguishment of debt(A) --- --- (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 (loss) $813 $(790) $1,627 $(644)
 Per share data:
 Weighted average number
 of common and common
 equivalent shares
 outstanding(A) 3,945,741 1,673,254 3,751,384 1,673,229
 Income (loss) before
 extraordinary charge $.21 $(.47) $.66 $(.32)
 Extraordinary charge --
 loss on early
 extinguishment of
 debt(A) --- --- (.35) (.07)
 Cumulative effect on prior
 years (to Dec. 31, 1992)
 of applying retroactively
 the new method of
 accounting for income
 taxes(B) --- --- .12 ---
 Net income (loss) $.21 $(.47) $.43 $(.39)
 (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- 11/1/93
 /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

KL-DA -- CL017 -- 9026 11/01/93 09:47 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 1, 1993
Words:968
Previous Article:NEW FREESTYLE FEATURE BRINGS "PLAIN ENGLISH" SEARCHING TO THE LEXIS/NEXIS SERVICES
Next Article:BANNER AEROSPACE REPORTS EARNINGS GAINS
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters