Earnings Per Diluted Common Share Improve to $0.39
CHICAGO, Oct. 22 /PRNewswire/ -- EVEREN Capital Corporation (NYSE: EVR)
today reported net income of $13.8 million for the quarter ended Sept. 30,
1998, a 12-percent increase over the $12.3 million reported in the 1997 third
quarter. Earnings per diluted common share (EPS) for the quarter improved to
$0.39, compared with a diluted EPS of $0.36 a year ago, after adjusting for
the company's two-for-one stock split effected in the 1998 second quarter.
According to James R. Boris, chairman and chief executive officer of
EVEREN Capital Corporation, "Our third-quarter results represent a healthy
improvement over 1997, which is a significant accomplishment considering the
market correction during the period. EVEREN maintains a strict and
conservative risk profile in part by focusing the firm's trading exclusively
on client business rather than for our own account. As a result, we have been
able to prevent dramatic swings in our financial performance during times of
market volatility."
EVEREN's net revenues increased approximately 19 percent to $185.8 million
for the 1998 third quarter from $155.5 million a year ago.
The company reported that commissions increased approximately 17 percent,
to $85.4 million for the quarter ended Sept. 30, 1998, from $73.1 million a
year ago. As of Sept. 30, 1998, EVEREN had 1,730 investment consultants,
compared with 1,312 at Sept. 30, 1997.
Investment banking revenues from underwriting and advisory fees improved
approximately 42 percent to $21.7 million in the current period from
$15.3 million the prior year. During the 1998 third quarter, the company
managed or co-managed offerings totaling more than $11.7 billion, including
six corporate finance transactions with a total value of approximately
$377 million.
EVEREN's asset management revenues rose approximately 47 percent to
$28.3 million for the 1998 third quarter, from $19.2 million during the
comparable period in 1997. Client assets increased to $56.8 billion as of
Sept. 30, 1998, from $47.8 billion a year ago.
Net interest and dividend revenues increased to $13.9 million in the third
quarter, up approximately 6 percent from $13.1 million a year ago.
Non-interest expenses of $163.7 million during the current period
increased from $135.5 million in the quarter ended Sept. 30, 1997. EVEREN'S
pretax margin for the third quarter of 1998 was 11.9 percent versus
12.8 percent a year ago, while its after-tax margin was 7.4 percent in the
current period compared with 7.9 percent during the 1997 third quarter.
Year-to-date results
Net income for the nine months ended Sept. 30, 1998, was $44.8 million, an
increase of approximately 35 percent from $33.2 million reported during the
same period a year ago. Split-adjusted diluted EPS for 1998 year-to-date
improved to $1.27, compared with $0.97 in the year-earlier period.
Net revenues increased approximately 34 percent to $570.8 million year-to-
date, from $425.0 million during the nine months ended Sept. 30, 1997.
Commissions improved approximately 34 percent to $264.1 million for the
nine months ended Sept. 30, 1998, from $196.8 million a year ago. Investment
banking revenues from underwriting and advisory fees year-to-date rose
approximately 72 percent to $70.2 million from $40.8 million in 1997. Asset
management revenues increased approximately 52 percent to $80.3 million year-
to-date from $52.8 million during the comparable 1997 period.
Net interest and dividend revenues increased approximately 13 percent to
$40.6 million for the nine months ended Sept. 30, 1998, from $35.8 million in
the same period last year.
Non-interest expenses were $498.4 million year-to-date, compared with
$371.6 million in 1997. EVEREN's pretax margin for the nine months ended
Sept. 30, 1998, improved to 12.7 percent from 12.6 percent for the same period
in 1997, with its after-tax margin of 7.8 percent for 1998 year-to-date
remaining unchanged from the same period of 1997.
Stockholders' equity as of Sept. 30, 1998, was approximately
$381.8 million. Annualized return on average common equity was approximately
16.6 percent for the nine months ended Sept. 30, 1998, compared with
14.5 percent in the 1997 period. EVEREN's book value per common share of
$10.96 as of Sept. 30, 1998, increased from $9.78 at Dec. 31, 1997.
EVEREN Capital Corporation (NYSE: EVR) 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 more than 1,700
investment consultants in approximately 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 $57 billion of client assets in more
than 600,000 active client accounts. Another EVEREN subsidiary, EVEREN
Clearing LLC, provides execution and clearing services for EVEREN Securities
and other broker-dealers. An 80-percent interest in this unit is expected to
be transferred to The Bank of New York in the 1998 fourth quarter. EVEREN
Capital expects to realize a one-time net after-tax gain of approximately
$12 million on the transaction. EVEREN Securities, Inc. and EVEREN Clearing
LLC 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 nine months ended Sept. 30, 1998 and 1997
(unaudited)
(in thousands, except share and per-share data)
Three months ended Nine months ended
Sept. 30, Sept. 30,
1998 1997 1998 1997
Revenue:
Commissions $85,352 $73,099 $264,137 $196,811
Principal transactions 28,202 28,174 84,839 76,103
Investment banking 21,676 15,272 70,161 40,776
Asset Management 28,266 19,171 80,334 52,762
Other 8,436 6,727 30,686 22,729
Interest and dividends 28,658 26,201 84,218 62,418
Total revenue 200,590 168,644 614,375 451,599
Interest expense 14,808 13,113 43,611 26,581
Net revenue 185,782 155,531 570,764 425,018
Expenses:
Compensation and benefits 110,279 93,024 339,283 251,836
Other operating 53,422 42,523 159,121 119,718
Total non-interest
expenses 163,701 135,547 498,404 371,554
Income before taxes 22,081 19,984 72,360 53,464
Income tax expense 8,305 7,672 27,569 20,236
Net income $13,776 $12,312 $44,791 $33,228
Weighted average common shares*
Basic 32.9 32.2 32.9 32.2
Diluted 35.4 34.6 35.3 34.2
Net income per share*
Basic $0.42 $0.38 $1.36 $1.03
Diluted $0.39 $0.36 $1.27 $0.97
* 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/comp/121760.html or fax,
800-758-5804, ext. 121760
CONTACT:
Media, Edgar P. McDougal, 312-574-5791, or
Wilson Medina, 312-574-5152, or Investor, Caron L. Schreiber,
312-574-5724, all of Everen Capital Corporation
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