Company Press Release
SOURCE: RISCORP, Inc.
RISCORP, Inc. Announces Financial Results For First Nine Months Of
1997
SARASOTA, Fla., Nov. 19 /PRNewswire/ -- RISCORP, Inc. today announced its financial results for the third quarter
ended September 30, 1997, and also filed its delayed financial reports for the first quarter ended March 31, 1997, and the
second quarter ended June 30, 1997, with the Securities and Exchange Commission.
Nine-Month Results
For the nine months ended September 30, 1997, the Company reported net income of $3.8 million, or $0.10 per share,
compared with net income of $9.3 million, or $0.26 per share, for the same period a year ago. Revenue was $164.4 million,
compared with $162.5 million, for the year ago quarter.
The Company's net book value through nine months was approximately $161.9 million, or approximately $4.49 per share.
In June 1997, RISCORP, Inc. entered into an asset purchase agreement with Zenith Insurance Company, a subsidiary of
Zenith National Insurance Corporation [NYSE:ZNT - news], whereby Zenith will purchase all of the Company's workers'
compensation business assets and assume certain liabilities related to that business. The purchase price, which will be paid in
cash, will be the difference between the book value of the assets being purchased and the book value of the liabilities assumed
by Zenith on the closing date, subject to minimum purchase price of $35 million.
Quarterly Results
For the third quarter, the Company reported a net loss of $634,000, or $0.02 per share, compared with net income of
$312,000, or $0.01 per share, for the same quarter a year ago. Revenue was $51.5 million, compared with $61.6 million for
the year ago quarter.
In addition, the Company also filed its delayed first and second quarter results on Form 10-Q with the Securities and
Exchange Commission.
For the first quarter ended March 31, 1997, the Company reported net income of $1.5 million, or $0.04 per share, compared
with net income of $3.0 million, or $0.09 per share, for the same quarter a year ago. Revenue was $55.9 million, compared
with $47.1 million for the year ago quarter.
For the second quarter ended June 30, 1997, the Company reported net income of $3.0 million, or $0.08 per share,
compared with net income of $5.9 million, or $0.16 per share, for the same quarter a year ago. Revenue was $57 million,
compared with $53.9 million for the year ago quarter.
RISCORP, Inc. is a managed care workers' compensation company offering employers products and services designed to
control costs, provide quality medical care, and promote rapid return to work.
The above release contains statements that constitute ''forward-looking statements'' within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. The words
''believe,'' ''estimate,'' ''expect,'' ''intend,'' ''anticipate,'' and similar expressions and variations thereof identify certain of
such forward-looking statements, which speak only as of the dates on which they were made. The Company undertakes no
obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events,
or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and
involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking
statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking
statements.
RISCORP, Inc.
Consolidated Condensed Statements of Income
Three months Three months Three months Three months
ended ended ended ended
3/31/97 3/31/96 6/30/97 6/30/96
Revenues:
Premiums earned $46,814 $38,369 $46,652 $42,121
Fee and other income 5,146 7,082 5,815 8,887
Net investment income 3,946 1,611 4,507 2,883
Total revenues 55,906 47,062 56,974 53,891
Expenses:
Losses and loss
adjustment expenses 32,547 24,366 23,374 26,760
Unallocated loss
adjustment expenses 4,019 2,785 4,081 3,062
Commissions, general
and administrative
expenses 14,437 13,021 22,135 13,200
Interest 482 1,077 487 522
Depreciation and
amortization 1,933 979 1,906 967
Total expenses 53,418 42,228 51,983 44,511
Income (loss)
before income
taxes 2,488 4,834 4,991 9,380
Income tax expense
(benefit) 1,009 1,777 2,025 3,448
Net income (loss) $1,479 $3,057 $2,966 $5,932
Net income (loss)
per share $0.04 $0.09 $0.08 $0.16
Weighted average
shares
outstanding 37,775,562 32,536,343 37,152,420 37,462,722
Three months Three months Nine months Nine months
ended ended ended ended
9/30/97 9/30/96 9/30/97 9/30/96
Revenues:
Premiums earned $40,417 $51,365 $133,882 $131,855
Fee and other income 7,008 7,111 17,969 23,079
Net investment income 4,104 3,098 12,557 7,592
Total revenues 51,529 61,574 164,408 162,526
Expenses:
Losses and loss
adjustment expenses 31,219 38,291 87,140 89,517
Unallocated loss
adjustment expenses 3,195 3,367 11,295 9,214
Commissions, general
and administrative
expenses 15,291 13,207 51,862 39,327
Interest 473 523 1,442 2,121
Depreciation and
amortization 2,418 4,323 6,257 6,270
Total expenses 52,596 59,711 157,996 146,449
Income (loss)
before income
taxes (1,067) 1,863 6,412 16,077
Income tax expense
(benefit) (433) 1,551 2,602 6,776
Net income (loss) $(634) $312 $3,810 $9,301
Net income (loss)
per share $(0.02) $0.01 $0.10 $0.26
Weighted average
shares
outstanding 36,868,114 37,485,691 37,331,665 35,720,088 |
