CHICAGO, April 23 /PRNewswire/ -- EVEREN Capital Corporation (NYSE: EVR)
today reported first-quarter net income of $16.1 million for the period ended
March 31, 1998, a 60-percent increase over the $10.1 million reported in the
1997 first quarter. Earnings per diluted common share (EPS) for the 1998
first quarter improved to $0.93, compared with diluted EPS of $0.60 a year
ago.
According to EVEREN Capital Corporation Chairman and Chief Executive
Officer James R. Boris, "The employees of EVEREN continue to deliver superb
financial results on behalf of our clients and stockholders, with all of our
businesses contributing to another solid quarter. Particularly noteworthy
were our investment banking revenues, which more than doubled during the
period, as well as our commission and asset management revenues, which both
improved 47 percent from last year."
Net revenues increased approximately 48 percent to $194.6 million for the
1998 first quarter from $131.3 million a year ago.
The company reported that commissions rose 47 percent to $90.8 million for
the quarter ended March 31, 1998, compared with $61.8 million a year ago. The
number of EVEREN investment consultants increased in the 1998 first quarter to
1,715 from 1,238 at March 31, 1997, through a combination of recruitment,
training and the Principal Financial Securities acquisition.
EVEREN's investment banking revenues from underwriting and advisory fees
improved to $21.8 million in the current period from $10.0 million the prior
year. During the 1998 first quarter, the company managed or co-managed
offerings totaling more than $6.5 billion, including nine equity issues with a
total value of approximately $1.1 billion.
Asset management revenues rose 47 percent to $24.5 million for the quarter
ended March 31, 1998, from $16.7 million in the comparable period in 1997.
Client assets increased approximately 48 percent to $59.4 billion from $40.1
billion a year ago. The increase includes $7.4 billion of client assets from
the acquisition of Principal.
Other revenues of $15.0 million included $6.0 million received from a New
York Stock Exchange arbitration award. After legal fees and other costs, the
arbitration award resulted in an after-tax increase in net income of
$2.9 million.
EVEREN's interest and dividend revenues were $26.6 million for the three
months ended March 31, 1998, compared with $18.0 million reported a year ago.
Net interest and dividends increased to $12.8 million in the 1998 first
quarter, up 14 percent from $11.3 million last year.
Non-interest expenses of $168.4 million in the quarter ended March 31,
1998, increased from $115.1 million in the 1997 period. EVEREN's pretax
margin for the first quarter of 1998 improved to 13.5 percent from 12.4
percent a year ago, with the after-tax margin widening to 8.3 percent in 1998
from 7.7 percent last year.
Stockholders' equity as of March 31, 1998, was approximately $352.4
million, or $20.22 per outstanding share. This represents an increase from
$301.7 million, or $17.61 a year earlier. Annualized return on average common
equity was approximately 18.8 percent for the three months ended March 31,
1998, compared with 13.7 percent in the 1997 first quarter.
EVEREN Capital Corporation is among the largest employee-owned companies
in the nation. Headquartered in Chicago, EVEREN Capital is the parent company
of EVEREN Securities, Inc., a national full-service brokerage firm with
approximately 135 offices nationwide; EVEREN Clearing Corp., which provides
securities execution and clearing services and commodities clearing services
for EVEREN Securities and other broker-dealers; and Principal Financial
Securities, Inc., a full-service brokerage firm with approximately 50 branch
offices in the Southwest, Midwest and West. EVEREN Securities, EVEREN
Clearing and Principal Financial Securities are members of the Securities
Investor Protection Corporation, the New York Stock Exchange and other
principal exchanges. For more information about EVEREN, visit the company's
Web site at http://www.everensec.com.
EVEREN CAPITAL CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Operations
Three months ended March 31, 1998 and 1997
(unaudited)
(in thousands, except share and per-share data)
Three months
ended March 31
1998 1997
Revenues:
Commissions $90,843 $61,811
Principal transactions 29,632 23,273
Investment banking 21,817 9,990
Asset management 24,546 16,674
Other 14,972 8,280
Interest and dividends 26,645 18,023
Total revenues 208,455 138,051
Interest expense 13,819 6,740
Net revenues 194,636 131,311
Expenses:
Compensation and benefits 114,913 78,545
Other operating 53,455 36,545
Total non-interest expenses 168,368 115,090
Income before taxes 26,268 16,221
Income tax expense 10,127 6,119
Net income $16,141 $10,102
Weighted average common shares
Basic 16,099,130 16,097,507
Diluted 17,431,150 16,696,708
Net income per common share
Basic $1.00 $.63
Diluted $.93 $.60
SOURCE EVEREN Capital Corporation
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Related links:
http://www.everensec.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 121760
CONTACT:
Edgar P. McDougal, 312-574-5791, or Caron
Schreiber, 312-574-5724, both of EVEREN Capital Corporation
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