Firm's Fourth Quarter Net Income Improves 58 Percent to $9.8 Million
CHICAGO, Feb. 5 /PRNewswire/ -- EVEREN Capital Corporation (NYSE: EVR)
today announced strong results for both the fourth quarter and year ended
December 31, 1996. The results reflect the first full calendar year of
operations since employees purchased the company in September 1995.
Net income for the year ended December 31, 1996, was $62.5 million,
or $4.94 per share, compared with a loss of $15.9 million in 1995. Earnings
per common share is not included for 1995 as it is not indicative of the
company's continuing capital structure. Net revenues, which include net
interest, for 1996 were $536.6 million, up $46.0 million, or 9 percent, from
$490.6 million in 1995. Net revenues for both 1996 and 1995 included revenues
attributable to certain non-strategic businesses which were sold or
discontinued during 1996. Excluding these revenues, net revenues for 1996
increased by approximately $58 million, or 13 percent, from the prior year.
Net income for the fourth quarter of 1996 reached $9.8 million, an
increase of 58 percent over 1995 fourth quarter net income of $6.2 million.
Earnings per share for the fourth quarter of 1996 were $0.57. Net revenues
increased 2 percent to $134.2 million for the quarter, from $131.3 million in
the fourth quarter of 1995. Net revenues for both the 1996 and 1995 fourth
quarters included revenues attributable to certain non-strategic businesses
which were sold or discontinued during 1996. Excluding these revenues, net
revenues for the 1996 fourth quarter increased by $10.1 million, or
approximately 8 percent, from the comparable period in 1995.
EVEREN Capital Chairman and Chief Executive Officer James R. Boris
said, "The 1996 fourth quarter culminated a notable year for EVEREN, during
which we reached and exceeded performance measures we set for ourselves.
Realizing the company's profitability and net revenue goals, as well as
completing our initial public offering of 4.6 million shares of EVEREN Capital
common stock, contributed to substantial gains in stockholders' equity, which
increased by approximately 120 percent in 1996."
As previously disclosed, the company's results for 1996 include an after-
tax gain of $30.2 million from the sale of BETA Systems, Inc., a data
processing and quote services subsidiary, and an extraordinary charge of
$2.9 million, net of tax, during the third quarter related to the early
retirement of the company's outstanding junior subordinated debentures.
Results for 1995 include $22.0 million on non-recurring charges, net of tax,
associated with the employee buyout of EVEREN from Kemper Corporation.
Excluding these items, net income for the year ended December 31, 1996, was
$35.2 million, compared with $6.1 million for 1995, representing an increase
of $29.1. million. Stockholders' equity as of December 31, 1996, was
approximately $289 million, or $17.40 per outstanding share. This represents
an increase of $157.4 million from $131.6 million a year earlier. Annualized
return on average common equity was approximately 16 percent for the fourth
quarter of 1996. For the year ended December 31, 1996, return on average
common equity was approximately 17 percent, excluding the extraordinary charge
and the sale of BETA.
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 securities brokerage firm with 140
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 New York Stock Exchange and the Securities Investor
Protection Corporation.
EVEREN CAPITAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
Three months and year ended December, 31, 1996 and 1995
(unaudited)
(in thousands, except share and per share data)
Three months ended Year ended
December 31 December 31
1996 1995 1996 1995
Revenues:
Commissions $57,348 $49,591 $225,798 $190,303
Principal
transactions 23,557 30,863 115,291 122,127
Investment
banking 17,229 15,520 55,889 47,093
Asset
management 14,804 13,907 57,293 53,332
Other 9,775 14,552 42,217 49,137
Interest and
dividends 18,328 19,452 74,067 81,177
Total revenues 141,041 143,885 570,555 543,169
Interest
expense 6,850 12,567 33,920 52,527
Net revenues 134,191 131,318 536,635 490,642
Expenses:
Compensation
and benefits 80,170 83,101 331,389 335,473
Other operating 38,993 37,566 147,591 177,148
Total non-interest
expenses 119,163 120,667 478,980 512,621
Gain on sale
of subsidiary -- -- 50,181 --
Income (loss) before
taxes and
extraordinary
charge 15,028 10,651 107,836 (21,979)
Income tax
expense
(benefit) 5,266 4,413 42,438 (6,125)
Net income (loss)
before
extraordinary
charge 9,762 6,238 65,398 (15,854)
Extraordinary charge
on early retirement
of debt, net of
income taxes of
$1.5 million -- -- (2,900) --
Net income
(loss) $ 9,762 $ 6,238 $ 62,498(1) $(15,854)(2)
Dividends on
exchangeable
preferred
stock -- $ 2,130
Net income
applicable to
common stock
before
extraordinary
charge $ 9,762 $ 63,268
Net income
applicable
to common
stock $ 9,762 $ 60,368
Weighted average
number of
common shares
outstanding 16,980,221 12,208,532
Per share of common stock(3):
Net income
before
extraordinary
charge $0.57 $5.18
Extraordinary
charge on
early retirement
of debt -- (.24)
Net income $0.57 $4.94
(1) Includes a $50.2 million pre-tax ($30.2 million after-tax)
gain on sale of subsidiary.
(2) Includes $22 million after-tax of non-recurring charges
associated with the employee buyout of EVEREN from Kemper
Corporations.
(3) Earnings (loss) 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.
SOURCE EVERN Capital Corporation
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CONTACT:
Ted McDougal, 312-574-5791, or Caron
Schreiber, 312-574-5724, both of EVEREN Capital Corporation
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