Year End Results
TFC.A 1999-02-10 (provided courtesy of ISDN Wire Service.)
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TRILON REPORTS 43% INCREASE IN OPERATING INCOME PER
SHARE
TORONTO, ONTARIO--
Trilon Financial Corporation today reported $179 million in
operating income before investment gains for the year ended
December 31, 1998, up from $121 million in 1997. After
providing for preferred share dividends, operating income per
share before investment gains were $0.93 for the year ended
December 31, 1998, a 43% increase over $0.65 per share earned
in 1997. During 1997, Trilon also recorded net investment gains
of $668 million or $4.14 per share related to the sales of
London Insurance Group and Gentra which raised net income for
1997 to $789 million.
George E. Myhal, President and Chief Executive Officer,
commented:
"We are pleased to report that Trilon increased its
operating income per share by 43%, as Trilon completed its
first full year under its new business mandate. Trilon
received a good market reception for its new service and
product offerings. In particular, income from financial
advisory services and merchant banking increased
significantly over the prior year.
With the positive momentum established in 1998, Trilon
looks forward to reporting increased profits in 1999."
During 1998:
Investment banking and brokerage operations contributed
$39 million in 1998 compared to $26 million earned last
year. Trilon increased its underwriting activities by
participating in 74 underwriting transactions with a value
of $22 billion. In addition, 15 advisory assignments were
completed during 1998 involving debt refinancings and
asset sales. Royal LePage's contribution from property
brokerage and related services declined slightly from last
year as real estate market activity returned to more
normal levels.
Merchant banking operations contributed $52 million to
earnings in 1998 compared to the $6 million earned during
the last 3 months of 1997, subsequent to the purchase of
this business. Trilon experienced strong new business
growth as loan originations amounted to $700 million
during 1998, of which $100 million were syndicated to
others. These loans are all well secured and provide
Trilon with a participation in the assets or companies
financed.
Investment management operations contributed $22 million
in 1998, up from $7 million in 1997 due to higher fee
income. Trilon continues to expand this area of operation
and recently provided Highstreet Asset Management with the
start-up capital for their investment management business,
in return for a 35% common share interest. The principals
of Highstreet are knowledgeable and experienced investment
management professionals with an excellent investment
track record.
Commercial financing operations contributed $134 million,
up substantially from $47 million last year. This increase
was the result of the higher amount of capital invested in
this segment after the sale of London Insurance Group and
Gentra late last year. Trilon has been redeploying these
assets into the higher yielding merchant banking
operations throughout the year.
The Board of Directors declared a quarterly dividend of $0.12
per common share payable on March 31, 1998 to holders of record
on March 12, 1998 and the regular dividends on each of the
Class I, II & III preferred shares. The Board of Directors
raised the quarterly dividend in the fourth quarter of 1998
from $0.10 per common share.
* * * * * * * * * * * * *
Trilon is a Canadian financial services corporation which
provides institutional and corporate clients with a broad range
of financial, advisory and management services. Trilon also
invests its own capital together with its clients to assist
them in implementing their business plans.
- 30 -
TRILON FINANCIAL CORPORATION
FINANCIAL DATA
millions Three months Year ended Dec. 31
(except per share ended Dec.31
information)
1998 1997 1998 1997
_______________________________________________________________
Total revenue $89 $ 58 $326 $187
Operating income
before investment gains 52 28 179 121
Investment gains, net - 500 - 668
_______________________________________________________________
Net income $52 $528 $179 $789
=====================================
Per common share
Operating Income before
investment gains 0.25 0.15 0.93 0.65
Net income 0.25 3.23 0.93 4.79
===============================================================
millions (except book December 31 December 31
value per share) 1998 1997
_______________________________________________________________
Total assets $3,344 $3,026
Shareholders' equity 2,350 2,265
Number of Class A
& Class B
shares outstanding 162.5 161.8
Book value per share 10.85 10.39
===============================================================
Segmented Income Data
millions Three months Year ended
ended Dec. 31 Dec. 31
1998 1997 1998 1997
_______________________________________________________________
Investment banking
and brokerage $ 7 $ 6 $ 39 $ 26
Merchant banking 25 6 52 6
Investment management 5 2 22 7
Commercial financing 28 16 134 47
Equity accounted
investments sold - 13 - 96
_______________________________________________________________
65 43 247 182
Interest expense (9) (4) (24) (25)
Other operating expenses (4) (11) (44) (36)
_______________________________________________________________
Operating income before
investment gains 52 28 179 121
Investment gains, net - 500 - 668
_______________________________________________________________
Net income $ 52 $528 $179 $789
===============================================================
Editors and Reporters
This release sets out the audited financial results of Trilon
Financial Corporation for the year ended December 31, 1998.
George E. Myhal, President and Chief Executive Officer and John
C. Tremayne, Managing Partner and Chief Financial Officer will
be available at 5:00 p.m. at (416) 363-0061 to answer questions
on the company's financial results. |
