CHICAGO, July 22 /PRNewswire/ -- EVEREN Capital Corporation (NYSE: EVR)
today reported second quarter net income of $14.9 million for the period ended
June 30, 1998, a 38-percent increase over the $10.8 million reported in the
1997 second quarter. Earnings per diluted common share (EPS) for the quarter
improved to $0.42, compared with EPS of $0.32 a year ago, after adjusting for
the company's two-for-one stock split effected in the 1998 second quarter.
According to EVEREN Capital Corporation Chairman and Chief Executive
Officer James R. Boris, "EVEREN's solid performance is the result of
consistent revenue growth in all of our businesses, along with continued
containment of fixed costs. Our results over the first six months of 1998
reflect not only a healthy market, but also the ability of our
well-positioned, diversified firm to take advantage of such favorable market
conditions."
EVEREN's net revenues increased approximately 38 percent to $190.3 million
for the 1998 second quarter from $138.2 million a year ago.
The company reported that commissions increased approximately 42 percent,
to $87.9 million for the quarter ended June 30, 1998, from $61.9 million a
year ago. As of June 30, 1998, EVEREN had 1,702 investment consultants,
compared with 1,283 at June 30, 1997.
Investment banking revenues from underwriting and advisory fees improved
approximately 72 percent to $26.7 million in the current period from
$15.5 million the prior year. During the 1998 second quarter, the company
managed or co-managed offerings totaling more than $10.8 billion, including 14
equity issues with a total value of approximately $2 billion.
The firm's asset management revenues rose approximately 63 percent to
$27.5 million for the 1998 quarter, from $16.9 million during the comparable
period in 1997. Client assets increased to $59.7 billion as of June 30, 1998,
from $43.1 billion a year ago.
Net interest and dividend revenues increased to $13.9 million in the
second quarter, up approximately 21 percent from $11.5 million a year ago.
Non-interest expenses of $166.3 million during the current period
increased from $120.9 million in the quarter ended June 30, 1997. EVEREN's
pretax margin for the second quarter of 1998 improved to 12.6 percent from
12.5 percent a year ago, while its after-tax margin of 7.8 percent in the
current period was unchanged from the 1997 quarter.
Year-to-date results up sharply
Net income for the six months ended June 30, 1998, was $31.0 million, an
increase of approximately 48 percent from $20.9 million reported in the first
half of 1997. Split-adjusted EPS for 1998 year-to-date improved to $0.89,
compared with $0.62 per diluted common share in the comparable period a year
ago.
Net revenues increased approximately 43 percent to $385.0 million for the
year-to-date, from $269.5 million during the six months ended June 30, 1997.
Commissions improved approximately 45 percent to $178.8 million for the
first half of 1998, from $123.7 million a year ago. Investment banking
revenues from underwriting and advisory fees year-to-date rose approximately
90 percent to $48.5 million from $25.5 million in 1997. Asset management
revenues increased approximately 55 percent to $52.1 million in the first six
months of 1998 from $33.6 million the prior year.
Net interest and dividend revenues increased approximately 18 percent to
$26.8 million for the six months ended June 30, 1998, from $22.7 million in
the same period last year.
Non-interest expenses were $334.7 million year-to-date, compared with
$236.0 million for the first half of 1997. EVEREN's pretax margin for the six
months ended June 30, 1998, improved to 13.1 percent from 12.4 percent for the
first half of 1997, with its after-tax margin of 8.1 percent for 1998
year-to-date comparing favorably with the 7.8 percent after-tax margin
reported for the same period of 1997.
Stockholders' equity as of June 30, 1998, was approximately
$367.6 million. Annualized return on average common equity was approximately
17.6 percent for the six months ended June 30, 1998, compared with
13.9 percent in the 1997 period. EVEREN's book value per common share of
$10.54 as of June 30, 1998, increased from $9.78 on 34.2 million shares at
Dec. 31, 1997.
EVEREN Capital Corporation is the fifth largest publicly traded majority
employee-owned company in the U.S. Its principal subsidiary, EVEREN
Securities, Inc., ranks among the 10 largest national full-service brokerage
firms in the industry and serves individual, corporate, municipal and
institutional clients through an integrated network of approximately 1,700
investment consultants in 170 offices. The company combines the capital
markets resources of a large national organization with the personalized
service and dedication of a smaller firm. Currently, EVEREN holds
approximately $60 billion of client assets in more than 600,000 active client
accounts. Another operating unit, EVEREN Clearing Corp., provides execution
and clearing services for EVEREN Securities and other broker-dealers. EVEREN
Securities, Inc. and EVEREN Clearing Corp. are members of the Securities
Investor Protection Corporation, the New York Stock Exchange and other
principal exchanges. For more information, visit the company's Web site at
http://www.everensec.com.
Except for historical information, statements included in this
announcement may constitute "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements
involve a number of risks, uncertainties and other factors that could cause
actual results to differ materially, as discussed in the company's filings
with the Securities and Exchange Commission.
EVEREN CAPITAL CORPORATION
AND SUBSIDIARIES
Consolidated Statement of Operations
Three and six months ended June 30, 1998 and 1997
(unaudited)
(in thousands, except per-share data)
Three months Six months
ended June 30 ended June 30
1998 1997 1998 1997
Revenues
Commissions $87,942 $61,901 $178,785 $123,712
Principal
transactions 27,005 24,656 56,637 47,929
Investment banking 26,668 15,514 48,485 25,504
Asset management 27,521 16,917 52,068 33,591
Other 7,279 7,721 22,251 16,002
Interest and
dividends 28,915 18,195 55,560 36,217
Total revenues 205,330 144,904 413,786 282,955
Interest expense 14,984 6,728 28,803 13,468
Net revenues 190,346 138,176 384,983 269,487
Expenses:
Compensation
and benefits 114,091 80,267 229,004 158,812
Other operating 52,240 40,649 105,697 77,195
Total non-interest
expenses 166,331 120,916 334,701 236,007
Income before taxes 24,015 17,260 50,282 33,480
Income tax expense 9,138 6,445 19,264 12,564
Net income $14,877 $10,815 $31,018 $20,916
Weighted average common
shares*
Basic 32.7 32.3 32.7 32.2
Diluted 35.4 34.1 35.0 33.7
Net income per common share*
Basic $0.46 $0.34 $0.95 $0.65
Diluted $0.42 $0.32 $0.89 $0.62
* Prior period earnings per share and per-share data are restated to
reflect the company's two-for-one stock split.
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:
Media, Edgar P. McDougal, 312-574-5791, or
Wilson Medina, 312-574-5152, or Investor Relations, Caron L.
Schreiber, 312-574-5724, all for EVEREN Capital Corporation
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