Citizens, Inc. Reports 143% Increase in Earnings
Citizens, Inc. (AMEX: CIA), reported net income of $2.7 million or $0.09 per share for the first six months of 2002, a 142.6% increase over $1.1 million or $0.04 per share during the same period in 2001.
(PRWEB) August 18, 2002
Increases in premiums and investment income during the period coupled with recent acquisitions contributed to the improvement in 2002 operating results.
Total revenue for the first half of 2002 reached $37.1 million, a 16.4% increase over the same period in 2001 when revenues were $31.8 million. Premium income increased 18.3% during the period to $29.5 million, compared to $24.9 million last year. The March, 2002 acquisition of Combined Underwriters Life Insurance Company and Lifeline Underwriters Life Insurance Company accounted for $3.5 million of the increase. Additionally, demand for the CompanyÂs U. S. dollar-denominated whole life insurance products worldwide increased 17% over the previous year. Net investment income grew by 6.6% through June 30, 2002 to $7.1 million from $6.6 million as a result of growth in the CompanyÂs invested asset base.
Net income for the three months ended June 30, 2002 was $1.2 million or $0.04 per share, compared to net income of $581,000 or $0.02 per share for the same period in 2001. Revenues for the quarter increased to $21.3 million, compared to $16.4 million for the same period in 2001. Premium income increased 35% during the quarter to $17.4 million, compared to $12.9 million in 2001 as the increased production of new life premium was augmented by increased accident and health revenues primarily related to the CompanyÂs recent acquisitions. The acquisitions described above contributed $3.5 million to the increase in premiums. Second quarter 2002 investment income grew 8.8% to $3.6 million from $3.3 million for the same period in 2001.
Assets at June 30, 2002 totaled $319.4 million, compared to $282.1 million at December 31, 2001, an increase of 13.2%. The growth was principally related to the March acquisitions. StockholdersÂ equity increased $15.0 million from $82.7 million at December 31, 2001 to $97.7 million at June 30, 2002, with the increase also attributable primarily to the acquisitions. The Company paid a 15% stock dividend on June 1, 2002.
Additionally, Citizens reported that the second quarter Form 10-Q that will be filed with the Securities and Exchange Commission contains the certification of Chief Executive Officer Rick D. Riley and Chief Financial Officer Jeffrey J. Wood required by the Sarbanes-Oxley Act of 2002.
About Citizens, Inc.
Citizens, Inc. is a financial services company listed on the American Stock Exchange under the symbol CIA. Its business development strategy is to achieve $1 billion in assets, $250 million in revenues and $10 billion of life insurance in force by 2010 targeting the sale of U. S. dollar whole life insurance policies world-wide and through acquisition of other life insurance companies.
Citizens is included in the Russell 2000Â® Index, which measures the performance of the largest companies in the U. S. stock market, based on market capitalization. CitizensÂ stock closed at $12.07 on August 12, 2002.
On August 22, 2002, the Company will begin trading on the New York Stock Exchange. The trading symbol will remain ÂCIA.Â
Additional information is available at the CompanyÂs web site: www. citizensinc. com.
Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as ÂmayÂ, ÂwillÂ, ÂexpectÂ, ÂanticipateÂ or ÂcontinueÂ or comparable words. In addition, all statements other than statements of historical facts that address activities that the Company expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of the Company, particularly its Form 10-K for the fiscal year ended December 31, 2001, for the meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.