CHICAGO, July 23 /PRNewswire/ -- EVEREN Capital Corporation (NYSE: EVR)
today reported net income of $10.8 million in the second quarter ended
June 30, 1997, an increase of approximately 7 percent over the 1997 first
quarter. Net income for the second quarter a year ago, which included an
after-tax gain of $30.2 million from the sale of BETA Systems, Inc. as well as
operating income attributable to certain non-strategic businesses exited in
1996, was $42.4 million.
Net revenues, which include net interest, for the 1997 second quarter were
$138.2 million. Net revenues for the year-ago period, which included
$9.6 million of net revenues attributable to certain non-strategic businesses
exited in 1996, were $148.1 million. Excluding net revenues from certain non-
strategic businesses exited during 1996, net revenues for the second quarter
of 1997 were virtually unchanged from a year ago.
Earnings per share of $0.60 for the second quarter of 1997 were based on a
weighted average of approximately 18.1 million common shares outstanding
during the period. The average number of outstanding shares includes the
4.6 million shares issued in connection with the company's initial public
offering during the 1996 fourth quarter.
According to EVEREN Chairman and Chief Executive Officer James R. Boris,
"The composition of our revenues is moving in the direction we want in terms
of our strategy of expanding our asset gathering and fee-based businesses.
Growth in revenues from our asset management business was particularly
noteworthy compared with the second quarter of 1996.
"In capital markets, we are encouraged by our progress in terms of the
number of deals in which we participated, and a corresponding increase in
underwriting revenues, over the first quarter of this year," Boris said.
"Also, commissions generated by our growing sales force continued to increase
and the coverage ratio of fee revenues to fixed expenses remained above our
target of 50 percent for the year."
Net income for the six-month period ended June 30, 1997, was
$20.9 million, or $1.17 per share. This represents an improvement of
$1.9 million, or 10 percent, compared with $19.0 million for the six months
ended June 30, 1996, before the $30.2 million after-tax gain from the sale of
BETA. Including the one-time gain, net income for the first half of 1996 was
$49.2 million.
Net revenues, which include net interest, for the six months ended
June 30, 1997, were $269.4 million. Net revenues for the same period a year
ago, which included $18.8 million of net revenues attributable to certain
non-strategic businesses, net revenues for the first half of 1997 increased
$6.4 million, or approximately 2 percent, from the six months ended June 30,
1996.
Stockholders' equity as of June 30, 1997, was approximately
$312.5 million, or $18.29 per outstanding share. This represents an increase
of $116.6 million, or 60 percent, from $195.9 million a year earlier.
Annualized return on average common equity was approximately 14 percent for
the second quarter of 1997. For the six month period ended June 30, 1997,
return on average common equity also was approximately 14 percent.
Headquartered in Chicago, EVEREN Capital Corporation is among the largest
employee-owned companies in the nation. EVEREN Capital is the parent company
of EVEREN Securities, Inc., a full-service nationwide superregional brokerage
firm with approximately 135 offices in 27 states, and EVEREN Clearing Corp.,
which provides securities execution and clearing services and commodities
clearing services for EVEREN Securities and other broker-dealers. EVEREN
Securities and EVEREN Clearing are members of the Securities Investor
Protection Corporation and the New York Stock Exchange.
EVEREN CAPITAL CORPORATION AND SUBSIDIARIES
Consolidated Statement of Operations
Three and six months ended June 30, 1997, and 1996
(unaudited)
(in thousands, except share and per-share data)
Three months ended Six months ended
June 30, June 30,
1997 1996 1997 1996
Revenues:
Commissions $ 61.9 $ 60.3 $ 123.7 $ 117.7
Principal
transactions 24.7 34.5 47.9 65.3
Investment banking 15.5 16.5 25.5 27.0
Asset management 16.3 13.2 32.4 27.7
Other 8.3 13.5 17.2 25.2
Interest and
dividends 18.2 19.3 36.2 37.5
Total revenues 144.9 157.3 282.9 300.4
Interest expense 6.7 9.2 13.5 18.5
Net revenues 138.2 148.1 269.4 282.0
Non-interest expenses:
Compensation and
benefits 80.3 88.9 158.8 175.6
Other operating 40.6 38.8 77.2 75.4
Total non-interest
expenses 120.9 127.7 236.0 251.0
Gain on sale of
subsidiary --- 50.2 --- 50.2
Income before taxes 17.3 70.6 33.4 81.2
Income tax expense 6.5 28.2 12.5 32.0
Net income $ 10.8 $ 42.4(2) $ 20.9 $ 49.2(2)
Net income applicable
to common stock $ 10.8 $ 20.9
Weighted average number
of common shares
outstanding 18,105,212 17,939,835
Net income per share of
common stock(1) $ .60 $ 1.17
(1) Earnings per common share are not presented for periods other than
the most recent period as such historical per-share information is not
indicative of the company's continuing capital structure
(2) Includes a $50.2 million pre-tax ($30.2 million after-tax) gain on
sale of subsidiary.
SOURCE EVEREN Capital Corporation
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CONTACT:
Edgar P. McDougal, 312-574-5791, or Caron
Schreiber, 312-574-5724, both of EVEREN Capital
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