Unaudited consolidated net income of Wesco Financial Corporation
(AMEX:WSC) and its subsidiaries for the first quarter of 2008 amounted
to $20,717,000 compared with $22,583,000 for the first quarter of 2007.
The decrease in consolidated earnings resulted mainly from (1) an
increase in operating expenses incurred by the furniture rental
business, as CORT expands and redirects the marketing of its rental
relocation services from targeting individuals to targeting corporate
clients, and (2) a slight softening in underwriting and investment
income of the insurance businesses.
Following is a breakdown of consolidated net income into useful business
components. All figures are on an after-tax basis. Per-share amounts are
based on 7,119,807 shares outstanding.
Quarter Ended March 31,
2008
2007
Wesco-Financial and Kansas Bankers
insurance businesses --
Underwriting
$
1,711,000
$
1,897,000
Investment income
15,321,000
15,574,000
CORT furniture rental business
3,533,000
4,716,000
Precision Steel businesses
296,000
361,000
Other
(144,000
)
35,000
Consolidated net income
$
20,717,000
$
22,583,000
Per share
$
2.91
$
3.17
Wesco’s Form 10-Q for the quarter ended March
31, 2008 will be filed electronically with the Securities and Exchange
Commission next week, and we invite shareholders, the financial media
and others to access it through the SEC’s
website (www.sec.gov). The Form 10-Q
will contain unaudited condensed consolidated financial statements,
management’s discussion and analysis of
financial condition and results of operations, and other information.
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