Citizens Financial Announces Second Quarter 2007 Results
August 10 2007 - 6:11PM
PR Newswire (US)
LOUISVILLE, Ky., Aug. 10 /PRNewswire-FirstCall/ -- Citizens
Financial Corporation (NASDAQ:CNFL) today reported net income of
$395,000, or $0.25 per share, for the three months ended June 30.
Net income increased $1,042,000 from a net loss of $647,000, or
$0.39 per share, during the same period in 2006. Net income for the
first half of 2007 was $214,000, or $0.13 per share, compared to a
net loss of $419,000, or $0.25 per share, during the same period in
2006. During the first six months of 2007 net equity decreased 11%
to $7.91 per share, principally due to net unrealized losses
experienced in the Company's fixed income investment portfolio,
resulting from the rising interest rate environment, offset by the
net income for the period. For the three months ended June 30,
2007, the Company experienced a pre- tax loss from operations of
$675,000 and pre-tax portfolio investment gains of $1,070,000
compared to a pre-tax loss from operations of $274,000 and pre-tax
portfolio investment losses of $103,000 in the comparable period in
2006. The increase of $507,000 from a pre-tax loss from operations
of $399,000 for the first six months of 2006 to a pre-tax loss from
operations of $906,000 for the first six months of 2007 represents
the net effect of a decrease in operating revenues of $19,000, a
decrease in policy benefits and benefit reserves of $112,000, a
decrease in investment income of $115,000, and an increase in all
other expenses of $485,000. Total revenues were up 4.2% for the
first half of 2007 compared to the prior year, while premium income
decreased 1.1% for the period. General expenses and depreciation
were up 13.5% during the first six months of 2007 compared to the
same period in the prior year, due primarily to the growth of
executive marketing staff. The Company also announces the
appointment of Gerald A. "Rusty" Wells to the Board of Directors,
effective August 9, 2007. Mr. Wells is an active owner and partner
of Alexander Investment Services, a local NASD Broker-Dealer
securities firm. On July 2, 2007, the Company announced it will be
engaging in what is commonly referred to as a "going private"
transaction. The purpose of the transaction will be to deregister
the Company's Class A common stock with the Securities and Exchange
Commission (the "SEC"), which will allow the Company to cease
filing reports with the SEC. In order to deregister its shares, the
Company will need to reduce its record number of Class A
shareholders to below 300. To accomplish this, the Company's board
of directors has proposed a 1- for-250 reverse stock split that
will have the effect of reducing the Company's number of record
Class A shareholders from approximately 2,388 to approximately 159.
Fractional shares resulting from the proposed reverse stock split
will not be issued, but will instead be purchased by the Company at
a purchase price of $7.25 per share for each share of Class A
common stock that becomes a fractional share as a result of the
reverse stock split. The Company's board believes that
deregistering the Company's shares will significantly reduce its
securities-related regulatory compliance costs, which primarily
include legal and auditing fees, as well as internal costs
associated with document preparation and review. Certain statements
made herein are forward-looking statements under the Private
Securities Litigation Reform Act of 1995. These statements involve
uncertainties and are based on management's current expectations.
For a discussion of factors that could cause actual results to
differ from those described in the forward-looking statements, and
a detailed discussion of the Company's insurance operations, asset
quality, capital adequacy, debt, liquidity and factors affecting
future performance, see the Company's Form 10- Q for the quarter
and Form 10-K for 2006 which have been filed with the Securities
and Exchange Commission and can be accessed at
http://www.citizensfinancialcorp.com/. Citizens Financial is the
Louisville-based parent of Citizens Security Life Insurance
Company. Citizens Financial Corporation Results in tabular form:
Quarter ended June 30 2007 2006 Segment Revenues $7,441,000
$7,473,000 Net realized investment gains (losses) $1,070,000
$(103,000) Total Revenues $8,511,000 $7,370,000 Net Income (Loss)
$395,000 $(647,000) Net Income (Loss) Per share $0.25 $(0.39) Six
Months ended June 30 2007 2006 Segment Revenues $14,879,000
$15,013,000 Net realized investment gains $1,119,000 $342,000 Total
Revenues $15,998,000 $15,355,000 Net Income (Loss) $214,000
$(419,000) Net Income (Loss) Per share $0.13 $(0.25) Selected
Financial Position Data June 30, December 31, 2007 2006 Total
Assets $145,379,000 $147,280,000 Notes Payable $5,760,000
$5,330,000 Shareholders' Equity $12,545,000 $14,116,000
Shareholders' Equity per share $7.91 $8.89 DATASOURCE: Citizens
Financial Corporation CONTACT: Len E. Schweitzer, Chief Financial
Officer, Citizens Financial Corporation, +1-502-244-2420 Web site:
http://www.citizensfinancialcorp.com/
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